Core Viewpoint - The company is actively enhancing public awareness of illegal financial activities and promoting a healthy financial market through a multi-faceted prevention strategy, including online and offline educational initiatives [1][2][10]. Group 1: Prevention Initiatives - The company has launched a comprehensive campaign to educate the public about illegal financial activities, conducting 98 offline events that reached over 3.19 million people [1]. - A series of original micro-films titled "Hidden Truths" was created to reveal illegal fundraising traps and enhance consumer risk awareness, reaching 1.8 million individuals [3]. - The company has implemented a three-dimensional linkage mechanism involving executives, middle management, and grassroots levels to promote financial education [2]. Group 2: Community Engagement - The company organized 164 "zero-distance" customer engagement activities, resulting in 161 business optimization and service enhancement measures [3]. - Various community outreach programs were conducted, including interactive sessions in schools and communities, targeting key demographics such as the elderly and youth [4][5]. - In collaboration with local authorities, the company has reached over 300,000 individuals through community-based educational activities [5][6]. Group 3: Collaborative Efforts - The company has established partnerships with local financial regulatory bodies and law enforcement to strengthen the financial safety net and enhance the impact of educational initiatives [4]. - In multiple cities, the company has engaged in joint activities with local governments to promote awareness of illegal financial practices, reaching over 50,000 people [4]. - The company has utilized innovative formats such as street dance competitions to engage younger audiences in financial safety education, benefiting over 20,000 individuals [5]. Group 4: Systematic Approach to Crime Prevention - The company has developed a "1+N" linkage system to coordinate with local banks and industry peers, resulting in the handling of 460 cases related to organized crime [9]. - A total of 33 cases were formally filed by law enforcement, with 11 administrative actions taken, showcasing the company's commitment to combating financial crime [9]. - The company emphasizes the importance of protecting consumer rights as a foundation for sustainable development in the financial sector [10].

Company Overview - Lufax Holding Ltd is a leading financial services enabler for small business owners in China, offering financing products tailored to their needs [1] - The company has established relationships with 85 financial institutions in China as funding partners, many of which have collaborated with Lufax for over three years [1] Shareholder Meeting Resolutions - The extraordinary general meeting of shareholders held on June 25, 2025, resulted in the approval to remove PricewaterhouseCoopers and PricewaterhouseCoopers Zhong Tian LLP as the auditors of the company [2] - Following the removal, Ernst & Young and Ernst & Young Hua Ming LLP were appointed as the new auditors to fill the vacancies and will hold office until the annual general meeting for the year ending December 31, 2025 [2] - The Board was authorized to fix the remuneration for the newly appointed auditors [2]

Core Viewpoint - Lufax Holdings is addressing market concerns by proposing to replace its auditor from PwC to EY, aiming to enhance governance and demonstrate resilience and growth potential in its core business [1][3]. Group 1: Transparency and Trust - The company has responded efficiently and transparently to market doubts following the dismissal of PwC, conducting an independent investigation into transactions from 2022 to 2024 [3]. - The investigation clarified that while there were accounting issues, there was no malicious intent or misconduct from management, effectively alleviating investor uncertainties [3]. - Following the announcement, Lufax's stock price rose by 1.97%, with an 18.32% increase since the previous announcement on April 24, reflecting investor confidence in the company's actions [3]. Group 2: Governance Enhancements - Lufax is using the audit issue as an opportunity to strengthen its governance structure, including a board reorganization with the appointment of Mr. Yediqi as the independent non-executive director and chairman [5]. - The establishment of an "Internal Control Enhancement Committee" at the board level and an "Internal Control Enhancement Executive Committee" at the management level aims to improve internal monitoring and procedures [5]. - These governance improvements not only meet the requirements for resuming trading but also create a robust governance framework that supports long-term stability [5]. Group 3: Business Recovery and Growth - Lufax's core business is showing signs of recovery, with new loans reaching 57.3 billion yuan in Q1 2025, a year-on-year increase of 19.1% [5]. - The company's business structure is improving, with the proportion of new loans in consumer finance rising from 38% in Q4 2024 to 53% [5]. - Asset quality has also improved, with a decline in overdue rates for non-consumer loans and a stable non-performing loan rate of 1.2% in consumer finance [5]. Group 4: Future Outlook - With strengthened governance and a recovering core business, Lufax is positioned to lead the Chinese fintech industry towards high-quality development [8]. - The company's ability to transform crises into opportunities for governance upgrades is a testament to its commitment to investors and long-term growth [7].

智通财经APP获悉，5月30日讯，陆控(06623)旗下PAO Bank Limited(下简称"PAObank")，自2025年5月 28日起，正式任命姚文松(Ronald Iu)为行政总裁兼执行董事。 作为香港首间中小企专属的数字银行，PAObank自2020年成立以来，以服务中小企为己任，秉承普惠金 融原则，致力为中小企解决融资难题。PAObank通过科技优势突破金融服务业既有框架，填补香港中小 企金融服务缺口，更透过创新金融科技和大数据应用，为中小企业提供融资便利，促进香港本地中小企 业务发展，树立行业标杆。公开信息显示，2024年PAObank各项经营指标表现亮眼：全年净利息收入按 年显著增加70%至逾1.3亿港元，客户贷款和垫款总额按年增长49%，突破31.3 亿港元。 陆金所控股首席执行官兼执行董事赵容奭表示："姚先生拥有卓越的银行金融业领导经验，对数字化金 融创新具有深刻洞察和丰富实践。陆控相信，姚文松先生将有力推动PAObank战略升级，在巩固中小企 服务优势的同时，加速拓展个人银行服务，持续践行普惠金融承诺，引领PAObank迈上高质量发展新台 阶。" 姚文松先生拥有逾20年银行及金融业经 ...

深交所公告，因恒生综合中型股指数实施成份股调整，根据有关规定， 港股通标的证券名单发生调整 并自2025年05月08日起生效，将 陆控调出港股通标的证券名单。 ...

Core Viewpoint - Digital finance is becoming a significant force in promoting high-quality economic development through its convenience, efficiency, and inclusiveness, with Lufax Holdings committed to empowering small and micro enterprises by innovating and applying technology [1] Group 1: Digital Financing Solutions - Lufax Holdings has launched the "Xingyun 2.0" AI smart loan solution to address the financing challenges faced by small and micro enterprises, utilizing 12 core technologies including AI, video communication platforms, and credit scoring models [1][2] - The "Xingyun 2.0" solution significantly reduces user waiting times, with 95% of users able to obtain loans within 1.3 hours, and the application time for medium to large micro loans decreasing by 20 minutes [2] Group 2: Empowering Small and Micro Enterprises - Lufax Holdings has developed a digital operating platform called "Luhui Rong Business Pass" to enhance the operational capabilities of small and micro enterprises, addressing their limitations in resources and marketing [3] - The company has assisted over 300 rural cooperative leaders and agricultural innovators in securing more than 133 million yuan in funding, impacting over 10,000 people across various agricultural sectors [3] Group 3: Recognition and Impact - Lufax Holdings was awarded the "Best Digital Financial Institution" at the "Influence · Times Summit" and the 9th "Times Financial Golden Orange Award" for its outstanding performance in digital finance and service optimization for small and micro enterprises [3] - The company's innovations in digital finance not only provide efficient financing solutions but also contribute significantly to the sustainable development of small and micro enterprises, setting a benchmark in the industry [4]

Core Viewpoint - Lufax Holding's recent announcement addresses market concerns regarding its auditor change, showcasing its commitment to investor relations and providing a clearer basis for reassessing the company's value [1] Group 1: Independent Investigation and Management Changes - The independent investigation revealed that past accounting issues were not due to profit transfer but aimed at protecting retail investors, with no malicious intent found among management [2] - The company has made significant governance improvements, including appointing a new independent non-executive chairman and CFO, and establishing a special committee led by independent directors to enhance board independence [2][3] Group 2: Financial Impact and Business Transition - The board estimates that adjustments to the asset side for 2022 will not exceed 0.5%, with a projected net profit reduction of 8-15% for 2023 [3] - The company has initiated recovery procedures from related parties, expecting to recover about 70% of disposal costs, indicating limited financial impact from the related transactions [3] - The transition to a 100% guaranteed business model has been completed, isolating historical transactions from current growth engines, thus maintaining the integrity of future financial data [4][5] Group 3: Operational Performance and Growth Prospects - The company reported a significant increase in new loans, with Q4 2024 reaching 694 billion yuan, a 47.6% year-on-year growth, and Q1 2025 at 573 billion yuan, up 19.1% [6] - The overdue rate for loans has improved, decreasing from 5.2% in Q3 2024 to 4.5% in Q1 2025, while the non-performing loan rate for consumer finance remains stable at 1.2% [7] - The company's revenue rate has increased to 9.7%, indicating a potential acceleration in profitability as it transitions to a fully guaranteed business model [7] Group 4: Market Reaction and Future Outlook - Following the announcement, Lufax's stock rose by 12.6%, reflecting positive market sentiment and a cumulative increase of 27% since the previous announcement [8] - The company's ability to navigate challenges while maintaining strategic focus positions it favorably for future value reassessment, especially as it demonstrates strong governance and operational resilience [9]

Core Viewpoint - The conflict between Lufax Holding (陆控) and PwC centers around the independent investigation results of related party transactions, revealing that while such transactions existed, their purpose differed from PwC's claims. Lufax failed to comply with necessary procedures and accounting standards, leading to significant management changes and a shift in auditing firms [1][2][3]. Related Party Transactions Investigation - An independent investigation commissioned by Lufax confirmed the existence of related party transactions, but the purpose was to compensate retail investors for losses rather than to cover previous losses of related entities. Lufax did not follow the required procedures for these transactions [2][3]. - The investigation revealed that from May 2023 to January 2024, Lufax invested in trust products managed by a non-related trust company, which were directed to purchase assets from related entities [2]. Financial Impact - Lufax acknowledged that the related party transactions constituted a breach of listing rules, affecting the fair value of assets and potentially leading to a 0.5% increase in total assets by the end of 2022, but a decrease of up to 2% by the end of 2023. Net profit is expected to decline by 8% to 15%, equating to a loss of 83 million to 155 million yuan [3][9]. Management Changes - Following the investigation, Lufax's board proposed significant management changes, including the appointment of a new chairman and CFO, to enhance corporate governance and comply with listing rules [5][6]. - The new chairman, Ye Dichi, and CFO, Xi Tongzhuo, both have extensive experience in the financial sector, with previous roles in Ping An Group [6]. Auditing Firm Transition - Lufax's board recommended appointing Ernst & Young as the new auditor to replace PwC, pending approval at a special shareholders' meeting [4]. Internal Control Enhancements - Lufax plans to hire independent consultants to improve its internal control systems and has established temporary committees to oversee these enhancements [7]. Loan Performance - Lufax reported a 31.2% year-on-year decrease in total outstanding loans, amounting to 216.9 billion yuan by the end of 2024. However, new loan issuance showed improvement, particularly in consumer finance, with a 50% increase in new loans [8]. - The overdue loan rates have also improved, with the 30-day overdue rate decreasing from 5.2% to 4.5% over three reporting periods [8]. Financial Performance Overview - Lufax's financial performance has been declining, with total revenue and net profit significantly dropping, including a net loss exceeding 700 million yuan in a single quarter [9].

Core Viewpoint - The company is facing significant delays in financial reporting and stock resumption due to ongoing audits and governance restructuring following issues with related party transactions and previous auditors [1][9][10]. Group 1: Financial Reporting and Auditing - The company has appointed Ernst & Young as the new auditor, but the approval from the shareholders' special meeting is required before the audit of financial statements for 2022 to 2025 can commence [9][10]. - The financial report disclosures will continue to be delayed, making the possibility of stock resumption in the short term extremely unlikely [1][10]. - The company has acknowledged accounting violations related to related party transactions, leading to distorted financial data for 2022 and 2023 [5]. Group 2: Governance and Management Changes - The company has decided to optimize its governance structure by clearly delineating the roles of the CEO and Chairman, appointing Ye Dichi as the new independent non-executive Chairman [6][8]. - The previous CEO and CFO have been held responsible for the related party transaction issues, leading to their departure from the company [5][6]. - A temporary special committee has been established to enhance internal controls, consisting of four independent non-executive directors [8]. Group 3: Business Performance and Growth Potential - The company has reported a decline in total outstanding loans, with a 31.2% year-on-year decrease to 216.9 billion yuan by the end of 2024 [11]. - Despite the overall decline in loans, the consumer finance segment has shown growth potential, with a 34.9% year-on-year increase in loan balance to 50.1 billion yuan in 2024 [11]. - New loan origination has improved, with a 47.6% year-on-year increase in the fourth quarter of 2024, driven significantly by the consumer finance sector [12]. Group 4: Asset Quality - The company has seen improvements in overdue rates for total loans and unsecured loans, with a 30-day overdue rate of 4.5% as of the first quarter of 2025 [14]. - However, the overdue rate for secured loans has continued to rise, indicating ongoing challenges in asset quality [14].

Group 1 - The company announced the appointment of Ernst & Young as its auditor to replace PwC and RSM, pending approval at a special shareholders' meeting on June 25 [1] - The board appointed Mr. Yediqi as the independent non-executive director and chairman, and Mr. Xitongzhu as the CFO and executive director, while Mr. Zhao Yongshi continues as CEO [1] - The company is undergoing an independent investigation regarding concerns raised by PwC about certain transactions, with findings indicating that the company’s investments were not for compensating related entities but for retail investors' losses [2] Group 2 - The company plans to implement several improvement measures, including optimizing the board and management structure, appointing independent internal control consultants, and establishing a special committee to enhance internal controls [3] - The company reported a significant increase in new loans facilitated, with RMB 69.4 billion in Q4 2024, up 47.6% from RMB 47 billion in Q4 2023, and RMB 57.3 billion in Q1 2025, up 19.1% from RMB 48.1 billion in Q1 2024 [3] - Consumer finance loans also saw substantial growth, with RMB 26.7 billion in Q4 2024, a 42.5% increase from RMB 18.8 billion in Q4 2023, and RMB 30.4 billion in Q1 2025, a 50% increase from RMB 20.3 billion in Q1 2024 [3]