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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.
OneConnect Financial Technology reported third quarter 2022 results, with revenue rising 0.4% to RMB1,069 million. The net loss attributable to shareholders improved to RMB133 million from RMB270 million year-over-year, resulting in a net profit margin of -12.4%. Gross margin slightly decreased to 35.1%. The company noted stable revenue despite macro challenges, with growth in AI customer service and international markets like Hong Kong and UAE. However, transaction-based product revenue declined due to pandemic restrictions. Operating expenses reduced, improving operational efficiency.
OneConnect Financial Technology Co., Ltd. (NYSE: OCFT) reported a 17.2% increase in revenue for Q2 2022, reaching RMB 1,134 million, compared to RMB 968 million in the prior year. The company improved its adjusted net profit margin by 17.3 percentage points year-over-year, reaching -18.8%. Operating loss narrowed to RMB 278 million from RMB 395 million, while net loss attributable to shareholders decreased to RMB 245 million from RMB 349 million. The board authorized a share repurchase program, having repurchased approximately 2.1% of total shares as of June 30, 2022.
Lufax Holding Ltd (NYSE: LU) reported its Q2 2022 financial results on Aug 4, 2022, revealing a 3.1% increase in total income to RMB 15,288 million (US$2,282 million) but a significant 37.9% drop in net profit to RMB 2,936 million (US$438 million). Expenses surged by 29.0% to RMB 10,935 million, primarily due to heightened credit impairment losses. The company anticipates a decline in new loans facilitated and net profit for H2 2022, reflecting ongoing challenges in the market.
Lufax Holding Ltd (NYSE: LU) announced it will release its second quarter 2022 financial results on August 4, 2022, after market close. Management will host an earnings call at 9:00 P.M. EDT on the same day to discuss the results. Investors can register online to join the call and will receive a unique access PIN. A recording will be available until August 11, 2022. Lufax, a technology-driven financial services platform in China, offers retail credit and wealth management solutions through a capital-light, technology-focused model.
OneConnect Financial Technology (NYSE: OCFT) reported a 24.3% revenue increase year-over-year, reaching RMB1,019 million for Q1 2022. Despite this growth, the operating loss widened slightly to RMB355 million, resulting in a net loss of RMB318 million. The adjusted net loss ratio improved by 9.6 percentage points to 27.6%. Revenue drivers included a 63.9% rise in cloud service revenue. The company's focus on premium-plus customers led to a 16% increase in their numbers, despite ongoing economic uncertainties.
Lufax Holding Ltd (NYSE: LU) reported a 13.5% increase in total income for Q1 2022, reaching RMB17,316 million (US$2,732 million) and a 6.5% rise in net profit to RMB5,290 million (US$834 million). The company faced a 168.2% surge in credit impairment losses, totaling RMB2,824 million (US$445 million). Despite operational challenges due to COVID-related lockdowns in China, Lufax saw its retail credit facilitation loans grow by 16.1%. However, it revised guidance, projecting a 7-10% decrease in new loans facilitated for H1 2022, while anticipating an 11-13% dip in net profit.
Lufax Holding Ltd (NYSE: LU) announced the upcoming release of its first quarter 2022 financial results, scheduled for May 25, 2022, after market closure. Management will host an earnings conference call at 9:00 P.M. Eastern Time to discuss these results. Participants are required to register online to join the call. A replay will be available starting June 1, 2022, along with an archived webcast on the company's investor relations website.
Lufax Holding Ltd (NYSE: LU) has filed its Annual Report on Form 20-F for the fiscal year ending December 31, 2021, with the SEC on May 2, 2022. The report includes audited consolidated financial statements available on the company’s investor relations website. Lufax is a technology-driven personal financial services platform in China, offering retail credit services and wealth management solutions aimed at small business owners and the growing middle class. The company utilizes a capital-light business model combining technology and financial expertise.
Lufax Holding Ltd (NYSE: LU) reported strong financial results for Q4 and full year 2021, with total income up 19.2% YoY to RMB 15.8 billion (US$2.5 billion) and net profit rising 1.7% to RMB 2.9 billion (US$454 million). Non-IFRS adjusted net profit surged 19.7% to RMB 3.4 billion (US$535 million). The company declared a cash dividend of US$0.68 per ordinary share and announced a US$500 million share repurchase program. For 2022, Lufax expects 10-12% income growth and net profit growth of 11-13%, supported by a robust retail lending and wealth management business.
Lufax Holding Ltd (NYSE: LU) will release its fourth quarter 2021 financial results on March 9, 2022, after market close. An earnings call is scheduled for 8:00 P.M. ET on the same day, with a replay available until March 17, 2022. Lufax offers technology-driven financial services in China, focusing on retail credit and wealth management. The Company operates a unique capital-light model tailored for small business owners and the middle-class segment, utilizing data and technology to optimize service delivery.
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