Lufax Holding Ltd (NYSE:LU) Q3 2023 Earnings Conference Call November 13, 2023 8:00 PM ET Company Participants Liu Xinyan - Head of Board Office and Capital Markets Y. S. Cho - Co-CEO and Chairman Gregory Gibb - Co-CEO David Choy - CFO Conference Call Participants Emma Chu - Bank of America Alex Ye - UBS Yada Li - CICC Operator Ladies and gentlemen, thank you for standing by, and welcome to the Lufax Holding Limited Third Quarter 2023 Earnings Call. [Operator Instructions] Please note this event is being re ...

Financial Performance - For Q3 2023, total revenue was RMB 8,050 million (approximately USD 1,103 million), a decrease of 39.0% compared to RMB 13,193 million in Q3 2022[5] - Net profit for Q3 2023 was RMB 131 million (approximately USD 18 million), down 90.3% from RMB 1,355 million in the same period last year[6] - Total revenue for Q3 2023 was RMB 8,050 million (approximately USD 1,103 million), a decrease of 39.0% compared to RMB 13,193 million in Q3 2022[12] - Net profit for the three months ended September 30, 2023, was RMB 130,973 thousand, down 90.3% from RMB 1,354,639 thousand in the same period last year[25] - The company reported a basic earnings per share of RMB 0.08 for the three months ended September 30, 2023, compared to RMB 1.16 for the same period in 2022, a decline of 93.1%[25] Loan and Borrower Metrics - As of September 30, 2023, the enabled loan balance was RMB 366.3 billion, a decline of 42.5% from RMB 636.5 billion a year earlier[7] - The number of cumulative borrowers increased by 6.8% year-over-year to approximately 20.0 million as of September 30, 2023[7] - New enabled loans in Q3 2023 amounted to RMB 50.5 billion, a decrease of 59.2% from RMB 123.8 billion in Q3 2022[7] - The risk-bearing ratio for new enabled loans (excluding consumer finance subsidiaries) rose from 21.7% in the previous year to 54.3% in Q3 2023[8] - The 30-day overdue rate for enabled loans was 6.0% as of September 30, 2023, compared to 5.9% as of June 30, 2023[8] - The non-performing loan (NPL) rate for consumer finance loans was 1.9% as of September 30, 2023, down from 2.2% as of June 30, 2023[8] Expenses and Cost Management - Total expenses for Q3 2023 were RMB 7,747 million (approximately USD 1,062 million), down 30.1% from RMB 11,082 million in Q3 2022[15] - Sales and marketing expenses decreased by 43.7% to RMB 2,290 million (approximately USD 314 million) in Q3 2023 from RMB 4,071 million in Q3 2022[16] - General and administrative expenses decreased by 15.6% from RMB 592 million in Q3 2022 to RMB 500 million (approximately USD 69 million) in Q3 2023, primarily due to cost control measures and a reduction in taxes and additional fees[17] - Operating and service expenses decreased by 7.6% from RMB 1,600 million in Q3 2022 to RMB 1,478 million (approximately USD 203 million) in Q3 2023, attributed to cost control measures and a decrease in loan balances, partially offset by increased resources invested in post-loan services[17] - Technology and analysis expenses decreased by 21.0% from RMB 484 million in Q3 2022 to RMB 382 million (approximately USD 52 million) in Q3 2023, due to optimization of the technology and research team and improved efficiency[17] - Credit impairment losses decreased by 24.1% from RMB 3,956 million in Q3 2022 to RMB 3,001 million (approximately USD 411 million) in Q3 2023, mainly due to a reduction in loan balances leading to decreased provisions for loans and receivables[17] - Financing costs decreased by 86.9% from RMB 306 million in Q3 2022 to RMB 40 million (approximately USD 5 million) in Q3 2023, primarily due to increased interest income from bank deposits and reduced interest from early repayment of convertible notes and other USD debts[18] Cash Flow and Assets - As of September 30, 2023, bank deposits were RMB 39,781 million (approximately USD 5,452 million), down from RMB 43,882 million as of December 31, 2022[20] - As of September 30, 2023, net assets were RMB 94,325 million (approximately USD 12,928 million), slightly down from RMB 94,787 million as of December 31, 2022[20] - The total assets as of September 30, 2023, were RMB 259,176,715 thousand, down from RMB 349,262,807 thousand as of December 31, 2022, representing a decrease of 25.8%[26] - Customer loans decreased to RMB 146,836,102 thousand as of September 30, 2023, from RMB 211,446,645 thousand as of December 31, 2022, a decline of 30.6%[26] - The company’s total liabilities as of September 30, 2023, were RMB 164,851,246 thousand, a decrease of 35.2% from RMB 254,476,132 thousand as of December 31, 2022[26] - The company’s cash and cash equivalents decreased to RMB 39,780,863 thousand as of September 30, 2023, from RMB 43,882,127 thousand as of December 31, 2022, a decline of 9.5%[26] Future Outlook - The company anticipates ongoing challenges in loan demand and market acceptance, impacting future revenue growth[4] - The company plans to acquire 100% equity of Ping An OneConnect Bank, pending approval from the Hong Kong Monetary Authority and shareholders[10] - The company maintained a capital adequacy ratio of 100% for Ping An OneConnect Bank, well above regulatory requirements[10] - The company has established financing and credit enhancement partnerships with 91 financial institutions in China, many of which have collaborated with the company for over three years[22] Investment and Cash Flow Activities - The net cash generated from operating activities for the three months ended September 30, 2023, was RMB 5,057,374 thousand, compared to RMB 2,368,661 thousand for the same period in 2022, representing a significant increase[28] - The net cash used in investing activities for the nine months ended September 30, 2023, was RMB 19,675,057 thousand, compared to RMB 4,459,025 thousand for the same period in 2022, indicating a substantial increase in investment outflows[28] - The cash flow from operating activities for the nine months ended September 30, 2023, was RMB 7,384,143 thousand, which is a significant increase compared to the previous year's figure[28] - The impact of foreign exchange rate changes on cash and cash equivalents was RMB 504,849 thousand for the nine months ended September 30, 2023, compared to RMB 205,975 thousand for the same period in 2022, indicating a notable increase[28] - The total cash and cash equivalents decreased by RMB 6,630,828 thousand in the three months ended September 30, 2023, compared to an increase of RMB 1,471,786 thousand in the same period of 2022[28]

Financial Performance - The total revenue for the first half of 2023 was RMB 19.348 billion, down from RMB 32.604 billion in the first half of 2022[6]. - Net profit for the first half of 2023 was RMB 1.736 billion, a significant decline from RMB 8.226 billion in the same period of 2022, resulting in a net profit margin of 9.0%[6]. - Total revenue decreased by 40.7% from RMB 32,604 million for the six months ended June 30, 2022, to RMB 19,348 million for the six months ended June 30, 2023[9]. - Net profit decreased by 78.9% from RMB 8,226 million in the six months ended June 30, 2022, to RMB 1,736 million in the six months ended June 30, 2023[21]. - The company reported a total comprehensive income of RMB 1,059,353 thousand for the six months ended June 30, 2023, down 86.1% from RMB 7,616,620 thousand in the previous year[61]. - The company reported a total of RMB 12,153,663 thousand in remaining performance obligations for long-term contracts as of June 30, 2023, with RMB 7,682,777 thousand expected to be recognized within one year[90]. Loan and Borrowing Information - As of June 30, 2023, the loan balance was RMB 426.4 billion, a decrease of 35.5% compared to RMB 661.4 billion on June 30, 2022[6]. - The overdue rate for loans over 30 days was 5.9% as of June 30, 2023, slightly up from 5.7% on March 31, 2023[7]. - The number of cumulative borrowers increased by 8.3% to approximately 19.7 million as of June 30, 2023, compared to approximately 18.2 million a year earlier[7]. - The total amount of loans issued by consolidated trust plans decreased from RMB 186,396,992 thousand as of December 31, 2022, to RMB 135,686,487 thousand as of June 30, 2023[120]. - The company issued new loans totaling RMB 62,669,645 thousand during the first half of 2023[123]. Expenses and Cost Management - Total expenses decreased by 19.8% from RMB 21,099 million to RMB 16,920 million, driven by operational efficiency improvements[15]. - Sales and marketing expenses fell by 30.2% from RMB 7,980 million to RMB 5,570 million, influenced by reduced new loan sales and transaction volumes[15]. - General and administrative expenses decreased by 16.0% from RMB 1,487 million to RMB 1,249 million, due to lower employee costs[16]. - Operating and service expenses slightly decreased by 1.2% from RMB 3,171 million to RMB 3,134 million, reflecting cost control measures[16]. - Technology and analysis expenses reduced by 26.4% from RMB 931 million to RMB 686 million, resulting from team optimization and improved operational efficiency[16]. Cash and Liquidity - As of June 30, 2023, cash and cash equivalents amounted to RMB 46,928 million, up from RMB 42,863 million as of June 30, 2022[22]. - The company's cash and cash equivalents decreased from RMB 43,882,127 thousand as of December 31, 2022, to RMB 46,927,978 thousand as of June 30, 2023, representing an increase of 7.4%[104]. - Cash flow from operating activities for the six months ended June 30, 2023, was RMB 5,280,779 thousand, a substantial improvement from a cash outflow of RMB 2,736,994 thousand in the same period of 2022[66]. Risk Management - The company faces foreign exchange risk primarily from fluctuations in the USD/CNY exchange rate, which could impact financial performance[30]. - Interest rate risk is managed through policies that require managing the maturity dates of interest-bearing financial assets and liabilities[31]. - The group’s risk management policies have remained unchanged since December 31, 2022, focusing on minimizing potential adverse impacts on financial performance[74]. - The group regularly evaluates macroeconomic indicators, including GDP and CPI, to estimate expected credit losses, with no significant changes in forecasting methods since December 31, 2022[74]. Shareholder Information - As of June 30, 2023, the total number of issued and outstanding shares was 1,146,236,115[36]. - The company declared a semi-annual dividend of $0.078 per share or $0.039 per American Depositary Share for the six months ended June 30, 2023, to be paid in cash[53]. - The company has a total of 23,682,710 shares available for future grants under the share incentive plan, equivalent to 47,365,420 American depositary shares[44]. - The company has options granted to purchase up to 100% of shares in Lanbang Investment Company Limited and Tun Kung Company Limited[43]. Corporate Governance - The company’s board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[35]. - The company has complied with all applicable provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[50]. - The company plans to continue evaluating the separation of the roles of Chairman and CEO based on the overall circumstances of the group[50]. Financial Instruments and Fair Value - The company's financial instruments are classified into three levels based on fair value hierarchy, with a total of RMB 29,536,890 thousand as of June 30, 2023[80]. - The fair value estimation techniques for financial instruments have not changed significantly since December 31, 2022[78]. - The total financial assets measured at fair value and recognized in profit or loss amounted to RMB 23,174,613 thousand, a decrease of 20.4% from RMB 29,089,447 thousand as of December 31, 2022[108].

Lufax Holding Ltd (NYSE:LU) Q2 2023 Results Conference Call August 21, 2023 9:00 PM ET Company Participants Liu Xinyan - Head of Board Office and Capital Markets Y. S. Cho - Co-CEO and Chairman of the Board Gregory Gibb - Co-CEO and Director Siu Choy - Chief Financial Officer Conference Call Participants Alex Ye - UBS Emma Chu - Bank of America Chiyao Huang - Morgan Stanley Yada Li - CICC Operator Ladies and gentlemen, thank you for standing by, and welcome to the Lufax Holding Limited Second Quarter 2023 E ...

Exhibit 99.1 陆金所控股 x Holding Ltd 金所控股有限公司 (A company incorporated in the Cayman Islands with limited liability) Stock Code: 6623 NYSE Stock Ticker: LU 2023 interim report CONTENTS 2 Company Information 4 Management Discussion and Analysis 14 Corporate Governance and Other Information 23 Report on Review of Interim Financial Information 25 Interim Condensed Consolidated Statement of Comprehensive Income 27 Interim Condensed Consolidated Statement of Financial Position 29 Interim Condensed Consolidated Statem ...

Dividend Declaration - Lufax Holding Ltd declared an interim dividend of $0.078 per ordinary share and $0.039 per American depositary share for the six months ended June 30, 2023[1]. - The interim dividend will be paid on October 24, 2023, to shareholders recorded as of October 12, 2023[1]. - The company expects to pay the semi-annual dividend to shareholders on October 24, 2023, and to American Depositary Share holders on October 30, 2023[54]. Financial Performance - The total revenue decreased by 40.7% from RMB 32,604 million for the six months ended June 30, 2022, to RMB 19,348 million for the six months ended June 30, 2023[10]. - Net profit for the first half of 2023 was RMB 1,736 million, down from RMB 8,226 million in the same period of 2022, resulting in a net profit margin of 9.0%[7]. - Net profit dropped by 78.9% from RMB 8,226 million in the first half of 2022 to RMB 1,736 million in the first half of 2023[22]. - Total revenue for Q2 2023 was RMB 9,270 million, down 39.4% from RMB 15,288 million in Q2 2022[13]. - The company reported a basic earnings per share of RMB 1.43 for the six months ended June 30, 2023, compared to RMB 7.16 for the same period in 2022, reflecting a decrease of 80%[62]. Governance and Compliance - The financial results for the six months ended June 30, 2023, were reviewed by the audit committee and the auditor, PwC[1]. - The company is committed to maintaining transparency and compliance with the Hong Kong Stock Exchange regulations regarding interim results announcements[1]. - The company emphasizes its commitment to corporate governance and compliance with legal requirements in its operations[2]. - The board of directors is committed to high standards of corporate governance, which is essential for protecting shareholder interests and enhancing corporate value[36]. - The company has complied with all applicable provisions of the Corporate Governance Code since the listing date[51]. Operational Highlights - The company is focused on expanding its market presence and enhancing its product offerings in the financial services sector[1]. - The company has established partnerships with 91 financial institutions to support its funding and credit enhancement efforts[7]. - The company aims to enhance risk management and diversify its business as part of its mid-term strategic initiatives[7]. Loan and Credit Metrics - As of June 30, 2023, the loan balance was RMB 426.4 billion, a decrease of 35.5% compared to RMB 661.4 billion as of June 30, 2022[8]. - The number of cumulative borrowers increased by 8.3% to approximately 19.7 million as of June 30, 2023, compared to approximately 18.2 million as of June 30, 2022[8]. - The overdue rate for loans over 30 days was 5.9% as of June 30, 2023, compared to 5.7% as of March 31, 2023[8]. - The consumer finance loan balance was RMB 32.8 billion as of June 30, 2023, with new consumer finance loans totaling RMB 31.8 billion in the first half of 2023[7]. Revenue Breakdown - Technology platform revenue decreased by 45.5% from RMB 16,672 million for the six months ended June 30, 2022, to RMB 9,086 million for the six months ended June 30, 2023[11]. - Net interest income fell by 32.8% from RMB 9,994 million to RMB 6,716 million during the same period, primarily due to a decrease in new loan sales and rates[11]. - Guarantee income dropped by 33.2% from RMB 3,838 million to RMB 2,565 million, attributed to a reduction in loan balances and rates[11]. - Other income decreased by 56.5% from RMB 1,236 million to RMB 538 million, due to changes in the fee structure charged to key credit enhancement partners[11]. Expense Management - Total expenses decreased by 19.8% from RMB 21,099 million to RMB 16,920 million, due to improved operational efficiency and reduced loan balances and new loan sales[16]. - Sales and marketing expenses fell by 30.2% from RMB 7,980 million to RMB 5,570 million, driven by reduced commissions from lower new loan sales[16]. - General and administrative expenses decreased by 35.3% from RMB 762 million in Q2 2022 to RMB 493 million in Q2 2023, attributed to cost control measures and reduced taxes[20]. Employee and Compensation - As of June 30, 2023, the company had a total of 50,057 full-time employees, with 36,167 in sales and marketing, 1,500 in credit assessment, and 7,483 in post-loan services[34]. - Employee benefits expenses for the six months ended June 30, 2023, were RMB 6,190 million, down from RMB 7,672 million for the same period in 2022, representing a decrease of approximately 19.4%[34]. - The company focuses on attracting and retaining qualified professionals through competitive compensation and performance-based incentives[34]. Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 46,928 million as of June 30, 2023, compared to RMB 42,863 million as of June 30, 2022[23]. - Operating cash flow for the first half of 2023 was RMB 5,281 million, significantly higher than RMB 2,737 million in the same period of 2022[24]. - The company had uncollateralized bank borrowings of RMB 31,814 million as of June 30, 2023, with fixed interest rates ranging from 3.0% to 4.5%[25]. Risk Management - The company manages interest rate risk primarily from fixed-rate instruments, including bank deposits and receivables[32]. - The group’s risk management plan focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[74]. - The group regularly evaluates macroeconomic indicators, including GDP and CPI, to provide optimal estimates for future credit loss provisions[75]. Shareholder Information - As of June 30, 2023, the total number of issued and outstanding shares was 1,146,236,115[37]. - The company issued convertible notes totaling $1,953.8 million to Ping An Overseas Holdings and An Technology, with 50% of the principal amount redeemed as of June 30, 2023[42]. - The share incentive plan has an authorized limit of 45,644,803 shares, with 23,682,710 shares available for future grants as of June 30, 2023[45]. Future Outlook - The company’s forward-looking statements are based on current expectations and involve known and unknown risks and uncertainties[56]. - The group expects no significant impact from the adoption of new standards effective from January 1, 2024[73].

Lufax Reports Second Quarter 2023 Financial Results SHANGHAI, Aug. 21, 2023 /PRNewswire/ — Lufax Holding Ltd ("Lufax" or the "Company") (NYSE: LU and HKEX: 6623), a leading financial services enabler for small business owners in China, today announced its unaudited financial results for the second quarter ended June 30, 2023. Second Quarter 2023 & First Half 2023 Financial Highlights • Total income was RMB9,270 million (US$1,278 million) in the second quarter of 2023, compared to RMB15,288 million in the sa ...

Lufax Holding Ltd (NYSE:LU) Q1 2023 Earnings Conference Call May 22, 2023 9:00 PM ET Company Participants Liu Xinyan - Head, Board Office and Capital Markets Y.S. Cho - Co-CEO & Chairman David Choy - CFO Gregory Gibb - Co-CEO & Director Conference Call Participants Alex Ye - UBS Emma Xu - Bank of America Merrill Lynch Richard Xu - Morgan Stanley Yada Li - CICC Operator Ladies and gentlemen, thank you for standing by, and welcome to Lufax Holding Limited First Quarter 2023 earnings call. [Operator Instructio ...

Financial Performance - For Q1 2023, total revenue was RMB 10,078 million (approximately USD 1,467 million), a decrease of 41.8% compared to RMB 17,316 million in Q1 2022[5] - Net profit for Q1 2023 was RMB 732 million (approximately USD 107 million), down 86.2% from RMB 5,290 million in Q1 2022[6] - Total revenue for Q1 2023 was RMB 10,077,752 thousand, a decrease of 41.5% compared to RMB 17,316,096 thousand in Q1 2022[24] - Net profit for Q1 2023 was RMB 732,370 thousand, down 86.1% from RMB 5,289,881 thousand in Q1 2022[24] - The company reported a basic earnings per share of RMB 0.59 for Q1 2023, down from RMB 4.62 in Q1 2022[24] Loan and Borrower Statistics - As of March 31, 2023, the enabled loan balance was RMB 495.2 billion, a decline of 26.8% from RMB 676.3 billion as of March 31, 2022[6] - The cumulative number of borrowers increased by 9.0% to approximately 19.4 million from about 17.8 million a year earlier[7] - New enabled loans for Q1 2023 amounted to RMB 57 billion, a significant drop of 65.3% compared to RMB 164.3 billion in Q1 2022[7] - The total amount of consumer finance loans increased to RMB 29.6 billion in Q1 2023[9] - The number of customer loans decreased to RMB 183,686,063 thousand as of March 31, 2023, down from RMB 211,446,645 thousand as of December 31, 2022[25] Risk and Credit Metrics - The risk-bearing ratio for new enabled loans (excluding consumer finance subsidiaries) rose to 22.6% from 20.4% in the same period last year[7] - As of March 31, 2023, the company's risk-bearing loan balance ratio increased to 24.5% from 19.4% on March 31, 2022[8] - The 30-day overdue rate for enabled loans was 5.7% as of March 31, 2023, compared to 4.6% as of December 31, 2022[8] - The 90-day overdue rate for enabled loans was 3.3% as of March 31, 2023, up from 2.6% as of December 31, 2022[8] - Credit impairment losses increased by 10.9% to RMB 3,132 million (approximately USD 456 million) in Q1 2023 from RMB 2,824 million in Q1 2022, primarily due to deteriorating credit performance[15] Expenses and Cost Management - Total expenses for Q1 2023 were RMB 8,964 million, down 11.8% from RMB 10,163 million in Q1 2022[6] - Sales and marketing expenses decreased by 32.4% from RMB 4,484 million in Q1 2022 to RMB 3,030 million (approximately USD 441 million) in Q1 2023, due to reduced new loan sales and lower transaction volumes[15] - Total expenses decreased by 11.8% from RMB 10,163 million in Q1 2022 to RMB 8,964 million (approximately USD 1,305 million) in Q1 2023, driven mainly by a reduction in sales and marketing expenses[13] Income Sources - The company reported credit impairment losses and financing costs totaling RMB 5,685 million, a decrease of 21.5% from RMB 7,247 million in the previous year[6] - Other income/losses for Q1 2023 were RMB 3,278 million, an increase of 12.4% compared to RMB 2,916 million in Q1 2022[6] - Net interest income for Q1 2023 was RMB 3,349 million (approximately USD 488 million), a decrease of 32.8% compared to RMB 4,984 million in Q1 2022, primarily due to reduced new loan sales and lower income rates, partially offset by an increase in net interest income from the consumer finance business[12] - Guarantee income for Q1 2023 was RMB 1,417 million (approximately USD 206 million), down 25.5% from RMB 1,902 million in Q1 2022, mainly due to a decrease in loan balances and lower rates[12] - Investment income for Q1 2023 was RMB 75 million (approximately USD 11 million), compared to RMB 435 million in Q1 2022, primarily due to a decline in the fair value of risk and investment assets[12] Strategic Developments - The company emphasizes the importance of cautious investment decisions based on Q1 performance due to inherent risks and uncertainties[3] - The company aims to increase the risk-bearing ratio of newly enabled loans and diversify its product offerings to better meet customer needs[9] - The company successfully completed its listing in Hong Kong on April 14, 2023, expanding its investor base[9] - The company successfully listed on the Hong Kong Stock Exchange on April 14, 2023, with the stock code "6623" and continues to trade its American Depositary Shares on the New York Stock Exchange[19] - The company has established partnerships with over 550 financial institutions in China to provide funding and credit enhancement services for small and micro enterprises[21] Cash Flow and Assets - Operating cash flow for Q1 2023 was RMB 3,286,049 thousand, a significant improvement from a cash outflow of RMB 1,702,222 thousand in Q1 2022[27] - Cash and cash equivalents increased to RMB 32,254,754 thousand as of March 31, 2023, compared to RMB 30,941,825 thousand at the end of Q1 2022[27] - Total assets decreased to RMB 325,596,710 thousand as of March 31, 2023, from RMB 349,262,807 thousand as of December 31, 2022[25] - The company’s equity attributable to shareholders increased slightly to RMB 93,310,649 thousand as of March 31, 2023, from RMB 93,189,846 thousand as of December 31, 2022[26] Market Outlook - The company expects growth in retail credit empowerment despite current challenges in the market[23]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...