The world was met with a shifting economic and trade environment with greater volatility in market demand in 2025. The U.S. implemented reciprocal tariffs on imported goods from most countries, sending shockwaves with direct and indirect impacts on the global supply chain. The effect was especially potent for export-oriented enterprises. Conditions of customers’ financial health became murky due to sharper fluctuations in external market demand, sending surges that drove credit risks to a higher level. FENC is tackling these challenges with a robust set of risk control strategies, strengthening loan management guidelines, reviewing credit terms with caution and increasing the percentage of secured loans to ensure fund recovery and maintain the stability and resilience of corporate operation.

Tightening Credit Terms with Periodic Credit Customer Evaluation

A comprehensive assessment identified customers with unusual credit activities or increased risks over the past year, and each was reviewed and examined. Credit terms were modified based on risk exposure and the customers were listed under continuous watch. The measures have helped FENC lower the ratio of accounts in arrears from 2% to 1.5% and enhanced the overall quality of credit operations. 

Increasing Secured Loans to over 80%

The creditworthiness of all domestic and international credit customers was assessed.  Credit insurance and an array of risk diversification measures were also adopted to protect accounts receivable. FENC leveraged multiple credit guarantee resources in 2025 to continue optimizing the credit procedures. The approach led to a steady rise in secured loans to over 80% across the Company, successfully minimizing financial impacts caused by any individual customers or market changes.

 Fine-tuning the Global Overdue Information Platform with Reinforced Risk Warning and Collection Mechanisms

FENC monitors customer payment status in real time on a daily basis through an integrated inter-departmental platform, making sure debt collection is completed within the critical 90-day mark. Measures for collection and risk response are activated according to established protocols, which have been shortening days sales outstanding and boosting the efficiency of cash flow management.

Additionally, FENC applies its time-tested credit management expertise to affiliated companies under the Far Eastern Group (FEG), providing assistance with implementing credit management systems and risk control procedures to improve credit quality and management across FEG. The established systems and training have substantially enhanced the credit risk control capabilities of FEG affiliates, demonstrating synergy across the group in protecting financial stability and perfecting risk management.