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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 Ltd (NYSE: LU) has announced a share repurchase program authorizing the buyback of up to US$300 million of its American depositary shares (ADSs) over the next six months. The repurchases will be funded from the company's existing cash balance and may occur through various trading methods, depending on market conditions. Additionally, senior management plans to use personal funds to purchase up to US$5 million in ADSs, demonstrating confidence in the company's long-term growth and aligning management's interests with shareholders.
Lufax Holding Ltd (NYSE: LU) reported a strong performance for Q1 2021, with total income rising by 16.9% year-over-year to RMB 15,251 million (US $2,328 million). Net profit also increased by 18.7% to RMB 4,969 million (US $758 million), maintaining a net margin of 32.6%. Key operational metrics include a 15.1% rise in loan balances and a 17.1% increase in the cumulative number of borrowers. The company saw improved loan quality with a more substantial share of new loans going to high-quality borrowers. These results reflect Lufax's effective risk management and growth strategy amidst regulatory changes.
Lufax Holding Ltd (NYSE: LU) will release its first quarter 2021 financial results on April 26, 2021, after market close. An earnings conference call will follow at 9:00 PM ET the same day. Participants can register online to receive dial-in details. A replay of the call will be available until May 3, 2021. Lufax is noted for its technology-driven personal financial services in China, focusing on retail credit and wealth management solutions tailored for small business owners and the growing middle class.
Lufax Holding Ltd (NYSE: LU) has filed its Annual Report on Form 20-F for the fiscal year ending December 31, 2020, with the SEC on March 11, 2021. This report is available on the Company’s investor relations website. Shareholders can request a hard copy of the report, which includes audited consolidated financial statements, free of charge. Lufax is a leading technology-driven personal financial services platform in China, catering to small businesses and the growing middle class through innovative financial solutions.
Lufax Holding Ltd (NYSE: LU) reported its unaudited financial results for Q4 and FY 2020. Total income rose by 5.9% to RMB13,286 million (US$2,036 million), while net profit increased by 17.4% to RMB2,847 million (US$436 million). Retail credit facilitation saw a 17.9% increase in loan balances, totaling RMB545.1 billion (US$83.5 billion). However, the revenue take rate for retail credit facilitation declined to 9.1%. The company also announced future guidance, expecting new loan sales of RMB175-180 billion for Q1 2021 and total income of RMB14.3-14.6 billion.
Lufax Holding Ltd (NYSE: LU) plans to release its fourth quarter 2020 financial results on February 2, 2021, after market close. An earnings conference call will take place at 9:00 P.M. U.S. Eastern Time the same day, accessible via pre-registration. The call will discuss the Company’s financial performance, focusing on retail credit and wealth management services tailored for China's middle class. A replay will be available until February 10, 2021, and can be accessed through the investor relations website.
Lufax Holding Ltd (NYSE: LU) reported its third-quarter 2020 financial results, showing total income rose by 10.5% year-over-year to RMB 13,076 million (US$1,926 million). However, net profit plummeted by 36.8% to RMB 2,157 million (US$318 million), heavily impacted by a RMB 1,326 million non-recurring expense associated with convertible notes restructuring. Non-IFRS adjusted net profit increased slightly by 2.0% to RMB 3,483 million (US$513 million). The company's total expenses surged by 32.3% to RMB 9,455 million (US$1,393 million). Lufax expects new loan sales to reach RMB 558 billion to RMB 568 billion for 2020.
Lufax Holding Ltd (NYSE: LU) has announced plans to release its third quarter 2020 financial results after market close on December 1, 2020. An earnings conference call will be held at 8:00 P.M. ET on the same day, intended to discuss these results. Interested participants can register online for the call to receive dial-in numbers and a unique access PIN. A replay of the call will be available until December 8, 2020, along with a live webcast on the company's investor relations website.
Lufax Holding Ltd (NYSE: LU) announced that the recent Interim Measures on Internet Micro Lending Loans released by Chinese regulatory bodies will not significantly impact its business. Following a shift in December 2017, Lufax's microloan subsidiaries have not engaged in direct funding at scale or partnered in joint lending. As of September 30, 2020, these subsidiaries provided less than 1% of total loans facilitated. Although the Company does not foresee immediate effects, future regulatory changes may necessitate a reassessment.
Lufax Holding Ltd has priced its initial public offering (IPO) of 175 million American Depositary Shares (ADSs) at $13.50 each, totaling approximately $2.36 billion. Each ADS represents two ordinary shares. The IPO is set to begin trading on the New York Stock Exchange under the symbol 'LU' on October 30, 2020, with expected closing on November 3, 2020. Underwriters have a 30-day option to purchase an additional 26.25 million ADSs at the same price. Major underwriters include Goldman Sachs and BofA Securities.
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