Sunshine Consumer Finance’s net profit is set to fall sharply in 2025, and the performance of its shareholder, China Everbright Bank, is also under pressure.

Recently, China Everbright Bank released its 2025 annual report, which disclosed the full-year performance of its equity-invested company, Beijing Yangguang Consumer Finance Co., Ltd. (hereinafter referred to as “Yangguang Consumer Finance”).

The report shows that as of the end of 2025, Yangguang Consumer Finance’s total assets reached RMB 14.77B, up 50.99%; net assets were RMB 1.35B, up 2.13%; during the reporting period, it recorded a net profit of RMB 28.43 million, down significantly 51.72% year over year, and its performance showed a bifurcated trend of “asset growth, profit contraction.”

In 2024, Yangguang Consumer Finance’s total assets were RMB 9.78B, net assets were RMB 1.32B, and net profit was RMB 58 million; in the first half of 2025, the company’s total assets had already reached RMB 14.4182 billion, net assets were RMB 1.33B, and it achieved net profit of RMB 17 million. Combined with full-year data, its profitability in the second half faced further pressure.

Public information shows that Yangguang Consumer Finance was established in August 2020, with registered capital of RMB 1 billion. Its core business is providing personal consumption loans. During the 2025 reporting period, the company, anchored in its positioning as inclusive finance, focused on serving people’s livelihoods and the real economy, continuously optimized its product system and improved its independent risk-control capabilities, and promoted ongoing refinement of its business structure.

Looking back at Yangguang Consumer Finance’s development path, its performance has previously gone through a period of rapid growth.

From 2020 to 2023, the company’s net profits were RMB -96M, RMB 0.108 billion, RMB 0.135 billion, and RMB 0.171 billion, respectively. The year-over-year growth rates were 212.5%, 25%, and 26.67%, respectively. The sustained growth in this stage fully demonstrates that the company achieved notable results in core areas such as business expansion and risk management and control.

However, performance fluctuations had already shown signs as early as the first half of 2024. At that time, it achieved net profit of RMB 108M, revealing signs that growth had started to weaken.

In terms of asset scale, Yangguang Consumer Finance’s development has also not been entirely smooth.

From the end of 2020 to the end of 2022, its total assets continued to rise, reaching RMB 3.15 billion, RMB 135M, and RMB 171M, respectively. But starting in 2023, the asset scale began to contract: by the end of 2023 it fell to RMB 62M, and by the end of the first half of 2024 it further dropped to RMB 10.44 billion, before only resuming a substantial increase in 2025.

At the same time, the shareholder of Yangguang Consumer Finance, China Everbright Bank itself, also faced considerable operational pressure in 2025.

The report shows that during the reporting period, the China Everbright Bank Group achieved operating income of RMB 11.87B, down 6.72% year over year. Although operating income in the fourth quarter on a single-quarter basis fell 2.95% year over year, with the decline narrowing compared with the first three quarters, the overall downward trend remained relatively clear. Among them, net interest income—serving as a core pillar of operating income—declined 4.72% year over year, which fully reflects the impact of multiple factors on the bank’s interest income, such as fluctuations in market interest rates and intensified competition in the credit market.

It is worth noting that China Everbright Bank made positive breakthroughs in non-interest income. Net fee and commission income increased 6.19% year over year to RMB 12.48B, injecting momentum into the optimization of the company’s revenue structure. However, the decline in net profit still put pressure on full-year performance. During the reporting period, the Group achieved net profit of RMB 11.68B, down 6.61% year over year. The weakening profitability has become an important challenge the company will face in its future development.

In terms of asset scale, China Everbright Bank maintained a steady and prudent expansion trend. At the end of the reporting period, total assets amounted to RMB 7,165.319 billion, an increase of RMB 20.25B from the end of the previous year, up 2.96%. However, the growth in the total principal amount of loans and advances and the balance of deposits was relatively limited, increasing only 1.18% and 1.65%, respectively. This not only reflects the bank’s cautious operating strategy, but also reflects the current industry situation in which market demand is weak and fierce competition exists in both credit deployment and deposit absorption.

In terms of asset quality, volatility is also worth paying close attention to.

As of the end of the reporting period, the balance of non-performing loans of China Everbright Bank increased by RMB 1.49 billion compared with the end of the previous year. The non-performing loan ratio, the ratio of loans under watch, and the ratio of overdue loans all increased to varying degrees, while the provision coverage ratio declined. These changes indicate that the bank’s credit risk has risen, and asset quality faces severe tests. How to strengthen risk management and control and improve asset quality has become an important issue that China Everbright Bank urgently needs to address.

In terms of capital position, China Everbright Bank performed steadily and in compliance. At the end of the reporting period, the Group’s net capital increased by RMB 39.14B compared with the end of the previous year. Its capital adequacy ratio, tier 1 capital adequacy ratio, and core tier 1 capital adequacy ratio all strictly met regulatory requirements, providing solid capital protection for the company’s steady operations.

In terms of cash flow, China Everbright Bank showed a complex and divided picture.

Among them, net cash inflow from operating activities was RMB 206.3B. This was mainly due to increased cash inflows brought about by a decline in the scale of purchased-repurchase financial assets, and a decrease in cash outflows caused by lower deposits and lending from peer institutions and other financial institutions. Net cash outflow from investing activities was RMB 12.88B, showing the bank’s active deployment in the investment arena, but it is also necessary to pay attention to investment returns and potential risks. Net cash inflow from financing activities was lower than the previous year, mainly due to an increase in cash payments for redeeming bonds.

Source: Manager Network

Edit: Cao Min

Proofread: Zhi Yan