Group 1 - The core demand for travel during the May Day holiday is primarily for returning home and leisure trips [1][5] - Travel demand is expected to peak on April 30 and May 1, with Didi predicting a 55% increase in ride-hailing demand during peak hours [2][3] - Didi forecasts a 304% increase in charter orders compared to pre-holiday levels, with significant growth in intercity travel [3] Group 2 - Car rental demand during the May Day holiday is expected to be 2 to 3 times higher than during the Qingming Festival, with 65% of bookings for out-of-town rentals [4] - Hello's data indicates that the demand for ride-sharing during the holiday could reach 60 million orders, setting a historical high for the platform [4] - The search volume for May Day travel has surged over 500% compared to last year, with a notable increase in interest from the younger demographic [6] Group 3 - Popular destinations for ride-hailing include cities like Guilin and Zhuhai, with emerging cities showing significant demand growth [3][5] - The majority of ride-sharing orders during the holiday are expected to be for scenic spots within a two-hour travel radius of major cities [5] - The trend of seeking nature experiences is rising, with significant increases in bookings for national parks and lakes [11]

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]

智通财经4月24日电，陆金所控股（06623.HK，NYSE LU）发布公告。董事会建议委任安永会计师事务 所及安永华明会计师事务所（特殊普通合伙）为本公司核数师，以填补免任罗兵咸永道及普华永道中天 后的空缺，并续聘安永为本公司核数师，任期直至截至25年12月31日止年度的股东周年大会为止，上述 委任需待6月25日于股东特别大会上批准。 陆金所：建议委任安永为继任核数师 ...

Core Viewpoint - Lufax Holding Ltd announced that Yong Suk Cho will continue as CEO, while Alston Zhu has resigned as CFO, with Tongzhuan Xi appointed as the new CFO. The company's ADR rose by 0.38% in after-hours trading [1]. Group 1: Company Overview - Lufax Holding Ltd is listed on the NYSE under the ticker LU [2]. - The company's stock closed at 2.62 USD, reflecting an increase of 0.15 USD (6.07%) on the day [4]. - The after-hours price was 2.63 USD, up by 0.010 USD (0.38%) [4]. Group 2: Financial Information - The market capitalization of Lufax Holding Ltd is approximately 22.71 billion USD [4]. - The stock has a 52-week high of 2.70 USD and a low of 2.00 USD [4]. - The price-to-earnings (P/E) ratio is reported at 54.35% [6].

Financial Data and Key Metrics Changes - Total income decreased by 31.1% to RMB 5.5 billion from RMB 8.1 billion, primarily due to a 41.8% decrease in outstanding loan balance, partially offset by an increased take rate [10][11] - Total expenses decreased by 19.2% to RMB 6.3 billion from RMB 7.7 billion, with operating expenses declining by 35.9% to RMB 3 billion [10][11] - A net loss of RMB 725 million was recorded for the third quarter [11] Business Line Data and Key Metrics Changes - Total new loan sales in Q3 were RMB 50.5 billion, flat year-over-year but up 11.7% from the previous quarter, driven by growth in the consumer finance business [6] - New consumer finance loans increased by 27.8% year-over-year, accounting for 52% of total new loan sales [6] - The balance of consumer finance loans represented 22% of the total loan balance of RMB 213.1 billion at the end of Q3 [6] Market Data and Key Metrics Changes - The SME development index declined by 0.3 points quarter-over-quarter to 88.7 in September, indicating ongoing challenges for small business owners [4] - The Business Conditions Index fell from 49.3 in June to 46 in September, reflecting persistent difficulties in the small business sector [4] Company Strategy and Development Direction - The company plans to focus on non-SBO customers and continue growing its consumer finance business to leverage gradual consumption recovery [5] - The acquisition of a nationwide small lending license is expected to reduce funding costs and improve capital management efficiency [8] - The company aims to deepen synergies with Ping An Group to strengthen its market position [9] Management Comments on Operating Environment and Future Outlook - Management expressed hope that recent policy stimulus measures from the Chinese government will positively impact business performance in the long run [3] - The company remains prudent in its strategies due to increased risk exposure associated with the 100% guarantee business model [3] - Volume guidance remains unchanged at RMB 190 billion to RMB 220 billion for loan sales [19] Other Important Information - The C-M3 flow rate of Puhui loans remained stable at 0.9%, while the NPL ratio for consumer finance loans improved to 1.2% from 1.4% [7][21] - The company has no specific plans for additional special dividends following a recent payout but is committed to providing long-term shareholder returns [22] Q&A Session Summary Question: Impact of new policy stimulus on business - Management believes the stimulus will have a positive impact, but it will take time for small business owners to benefit from these measures [18] Question: Business outlook for this year and beyond - Volume guidance remains unchanged, with expectations of improved lifetime profitability despite short-term pressures [19] Question: Latest asset quality performance - Asset quality indicators remained stable, with confidence in future improvements as the loan balance reduction ends [21] Question: Plans for special dividends or shareholder returns - No specific plans for additional special dividends, but management is committed to long-term shareholder returns [22] Question: Increase in credit impairment losses - The increase is attributed to provisions related to loans under the 100% guarantee model and a conservative approach reflecting macroeconomic conditions [25] Question: Trend of funding costs going forward - Funding costs are expected to decrease further due to favorable monetary policy and a diversified license strategy [26]

Financial Performance - Total income for Q3 2024 was RMB 5,543 million (US$ 790 million), a decrease of 31.1% compared to RMB 8,050 million in Q3 2023[24] - Net loss for Q3 2024 was RMB 725 million (US$ 103 million), compared to a net profit of RMB 131 million in the same period of 2023, representing a decline of 653.7%[24] - Total income for the nine months ended September 2024 was RMB 18,483,377, representing a decrease of 32% from RMB 27,398,546 for the same period in 2023[48] - Basic earnings per share for the nine months ended September 2024 was (1.98), compared to 1.51 for the same period in 2023[48] - Net loss attributable to owners of the Group for the three months ended September 2024 was RMB 874,806, compared to a profit of RMB 93,778 in the same period of 2023[48] Loan and Borrower Metrics - Cumulative number of borrowers increased by 24.1% to approximately 24.8 million as of September 30, 2024, up from approximately 20.0 million a year earlier[26] - Total outstanding balance of loans decreased by 41.8% to RMB 213.1 billion as of September 30, 2024, from RMB 366.3 billion a year earlier[26] - Total new loans enabled remained flat at RMB 50.5 billion in Q3 2024, with new consumer finance loans increasing by 27.8% to RMB 26.4 billion[26] - New loan sales in the consumer finance business increased by 27.8% year-over-year, accounting for 52% of total new loan sales in the quarter[29] Expenses and Losses - Total expenses for Q3 2024 were RMB 6,262 million, a decrease of 19.2% from RMB 7,747 million in Q3 2023[25] - Credit impairment losses, finance costs, and other losses increased by 5.9% to RMB 3,279 million in Q3 2024[25] - Total expenses decreased by 19% to RMB 6,262 million (US$ 892 million) from RMB 7,747 million in Q3 2023, primarily due to a 50% reduction in sales and marketing expenses[33] - The company reported credit impairment losses of RMB 3,270,214 for the three months ended September 2024, an increase of 9% from RMB 3,001,108 in the same period of 2023[48] - The company’s total expenses for the nine months ended September 2024 were RMB 19,118,958, a decrease of 22% from RMB 24,667,293 for the same period in 2023[48] Cash and Assets - Cash at bank decreased to RMB 27,039 million (US$ 3,853 million) as of September 30, 2024, down from RMB 39,599 million as of December 31, 2023[38] - Cash at bank decreased to RMB 27,038,935 as of September 2024, down 32% from RMB 39,598,785 as of December 31, 2023[50] - Cash and cash equivalents at the end of the period on September 30, 2024, were RMB 9,964,987,000, down from RMB 18,828,729,000 at the end of the same period in 2023[55] - The net decrease in cash and cash equivalents for the three months ended September 30, 2024, was RMB (10,433,558,000), compared to RMB (6,630,828,000) in the same period of 2023[55] - Total assets as of September 2024 were RMB 206,449,110, down from RMB 237,023,009 as of December 31, 2023, a decrease of approximately 13%[50] - Total liabilities as of September 2024 were RMB 120,108,859, a decrease of 16% from RMB 143,339,227 as of December 31, 2023[50] Business Strategy and Outlook - The company maintains a cautious approach to business strategies while focusing on non-SBO customers and enhancing consumer finance offerings[29] - The estimate for the consolidated loss attributable to owners of the company for the three months ended September 30, 2024, was prepared based on unaudited management accounts[58] - The estimate is required to be reported in accordance with Rule 10 of the Hong Kong Code on Takeovers and Mergers[71] - The estimate has been properly compiled in accordance with the bases adopted by the directors and is consistent with the accounting policies normally adopted by the group[67] - The company reported a net loss attributable to owners for the three months ended September 30, 2024, as part of its profit forecast[71]