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Lufax Holding Ltd (NYSE: LU | HKEX: 6623) is a premier technology-empowered personal financial services platform based in China, primarily catering to the needs of small business owners and salaried workers. The company focuses on addressing the extensive unmet demand for personal lending and offers bespoke wealth management solutions for China's middle class and affluent population. Operating through two key hubs - the Retail Credit Facilitation Hub and the Wealth Management Hub - Lufax has effectively positioned itself as a leading financial services enabler in the region.
In recent developments, Lufax announced plans to change the ratio of its American Depositary Shares (ADS) to ordinary shares from the current ratio of two ADSs to one ordinary share, to one ADS for every two ordinary shares. This change, effective December 15, 2023, aims to enhance trading efficiency and is expected to proportionally increase the ADS trading price.
The company has also been notified by the New York Stock Exchange (NYSE) for being below the continued listing standards due to its ADS trading price. Lufax is actively working to regain compliance within the six-month Cure Period by implementing strategic adjustments.
Despite challenging macroeconomic conditions, Lufax reported a focused approach on asset quality over quantity, completing significant de-risking and diversification initiatives. These initiatives include optimizing their product mix, refining customer segmentation, and transitioning to a 100% guarantee model for new loans. This strategic shift is projected to enhance profitability and ensure long-term growth.
Lufax maintains robust financial partnerships, collaborating with 91 financial institutions in China for funding and credit enhancement. The company continues to demonstrate resilience, with a well-capitalized structure and substantial cash reserves.
As part of their commitment to shareholder value, Lufax's board has approved a special dividend, reflecting their strong capital position and confidence in future growth. The company's financial outlook for 2024 includes a targeted increase in new loan sales and a maintained focus on prudent financial management.
Lufax remains a pivotal player in China's financial sector, providing essential services that support the economic activities of small businesses and the financial aspirations of the middle class. With strategic initiatives and robust financial health, Lufax is poised for sustainable growth and enhanced shareholder value.
Lufax Holding announced its unaudited financial results for Q3 2024, revealing a 31% YoY decline in total income to RMB5,543 million (US$790 million). The company reported a net loss of RMB725 million (US$103 million), compared to a net profit of RMB131 million in Q3 2023. Total expenses decreased by 19% to RMB6,262 million (US$892 million), primarily due to a significant reduction in sales and marketing expenses. However, credit impairment losses rose by 9% to RMB3,270 million (US$466 million). The total outstanding balance of loans dropped by 41.8% to RMB213.1 billion, while new consumer finance loans increased by 27.8% YoY to RMB26.4 billion. The company's non-performing loan ratio improved to 1.2% from 1.4% in Q2 2024. Lufax maintained a solid capital position with a leverage ratio of 2.6x for its guarantee subsidiary and a 14.9% capital adequacy ratio for its consumer finance subsidiary.
Lufax Holding (NYSE: LU and HKEX: 6623), a leading financial services enabler for small business owners in China, has announced its plans to release third quarter 2024 financial results on October 21, 2024. The results will be released after the Hong Kong market closes and before the U.S. market opens.
The company will hold an earnings conference call at 9:00 P.M. U.S. Eastern Time on October 21, 2024 (9:00 A.M. Beijing Time on October 22, 2024) to discuss the financial results. Participants can register for the call using the provided link. A live and archived webcast of the conference call will be available on the company's investor relations website. The replay will be accessible through October 28, 2024.
Lufax Holding (NYSE: LU, HKEX: 6623) announced its unaudited financial results for Q2 2024, revealing significant declines across key metrics. Total income dropped by 35.5% to RMB5,976 million (US$822 million) compared to Q2 2023. Net loss for the period was RMB730 million (US$100 million), a stark contrast to the RMB1,004 million profit in the same period last year.
Operational highlights for Q2 2024 include a 44.8% decrease in the total loan balance to RMB235.2 billion, while consumer finance loans saw a 27.9% increase. New loans enabled fell by 15.5% to RMB45.2 billion. Delinquency rates showed improvement, with the DPD 30+ rate dropping to 5.4% and the DPD 90+ rate to 3.4% as of June 30, 2024.
Total expenses decreased by 20.3% to RMB6,341 million, driven by a 46% reduction in sales and marketing expenses. Operating entities maintained strong capital positions, reflected in a stable leverage ratio of 2.4x for the guarantee subsidiary and a capital adequacy ratio of 14.7% for the consumer finance company.
Lufax Holding (NYSE: LU and HKEX: 6623), a leading financial services enabler for small business owners in China, has announced plans to release its second quarter 2024 financial results on August 21, 2024, after the U.S. market closes. The company will hold an earnings conference call at 9:00 P.M. U.S. Eastern Time on the same day (9:00 A.M. Beijing Time on August 22, 2024) to discuss the results. Interested participants can register for the call using the provided link. A live and archived webcast will be available on Lufax's investor relations website, and a replay will be accessible until August 28, 2024.
Lufax Holding (NYSE: LU, HKEX: 6623), a key financial services provider for small business owners in China, announced the outcomes of its annual general meeting held in Shanghai on May 30, 2024.
The key resolutions approved by the shareholders include:
- Adoption of the audited consolidated financial statements for the year ending December 31, 2023.
- Approval of a special dividend of US$1.21 per ordinary share or US$2.42 per ADS.
- Re-election of directors Yong Suk CHO, Yonglin XIE, and Weidong LI.
- Authorization for the board to set directors' remuneration and to reappoint PricewaterhouseCoopers as auditors.
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