Financial Data and Key Metrics Changes - In Q2 2024, total income decreased by 35.5% to CNY 6 billion from CNY 9.3 billion in Q2 2023, primarily due to a 44.8% decrease in outstanding loan balance [14] - Total expenses decreased by 20.3% from CNY 8 billion to CNY 6.3 billion, with operating expenses declining by 29.7% [15] - A net loss of CNY 730 million was recorded for the second quarter [15] Business Line Data and Key Metrics Changes - Total new loan sales in Q2 2024 were CNY 45.2 billion, a 15.5% year-over-year decline, with Puhui loans down 35% year-over-year [6] - Consumer finance loans increased by 23.6% year-over-year, representing 49% of new loan sales [6] - The C-M3 flow rate for Puhui loans improved to 0.9% from 1.0% in the previous quarter, while the NPL ratio for consumer finance loans decreased to 1.4% from 1.6% [7] Market Data and Key Metrics Changes - The SME development index trended down by 0.3 points quarter-over-quarter to 89 in June, indicating persistent challenges in the small business sector [5] - The Business Conditions Index fell from 50.1 in March to 49.3 in June, reaching its lowest level for the first half of 2024 [5] Company Strategy and Development Direction - The company is focusing on improving asset quality and implementing prudent business strategies to provide a solid foundation for future growth [5] - The acquisition of a nationwide small lending license is expected to reduce funding costs and diversify product offerings [9] - The relationship with Ping An Group is expected to enhance branding, technology, and distribution channels, improving overall operational efficiency [10][11] Management Comments on Operating Environment and Future Outlook - Management noted that loan demand remains weak, particularly in the small business sector, and recovery largely depends on macroeconomic improvements [23] - There is confidence in sustaining improvements in asset quality due to ongoing enhancements in risk management and underwriting processes [24] - The company remains committed to a strategic approach aimed at achieving sustainable quality growth despite the complex macro environment [12] Other Important Information - The distribution of special dividends was completed at the end of July, increasing Ping An Group's ownership to 56.8% [10] - The company plans to leverage Ping An Group's technological resources to enhance risk management and fraud prevention [11] Q&A Session Summary Question: What is the current loan demand and outlook for loan growth recovery? - Loan demand is still weak, and recovery depends on macroeconomic improvements, with a focus on consumer finance to cope with declining SBO loan demand [23] Question: Can the improvement in asset quality continue? - Continuous portfolio mix improvement and efforts in risk management and collection processes are expected to sustain asset quality improvements [24] Question: What areas will see more collaboration with Ping An Group? - Collaboration will focus on customer sourcing, technology development, and brand enhancement, which are expected to reduce funding costs [26] Question: Are there plans to increase shareholder returns? - While no semiannual dividend will be paid due to a net loss, management is dedicated to returning value to shareholders and maintaining an annual dividend policy of 20% to 40% of net profit [28] Question: What is the outlook for future funding costs? - Funding costs are expected to continue decreasing due to favorable monetary policies and synergies with Ping An Group [27][29] Question: Why did the OpEx to income ratio increase in Q2? - The increase was mainly due to loan scale contraction leading to a decline in economies of scale, but efforts will be made to improve operational efficiency [30]

Financial Performance - Total income for Q2 2024 was RMB 5,976 million (US$ 822 million), a decrease of 35.5% compared to RMB 9,270 million in Q2 2023[2] - Net loss for Q2 2024 was RMB 730 million (US$ 100 million), compared to a net profit of RMB 1,004 million in the same period of 2023, representing a decline of 172.7%[3] - Net interest income for Q2 2024 was RMB 2,716 million, a decrease of 19.3% from RMB 3,367 million in Q2 2023[10] - Technology platform-based income decreased by 51.0% to RMB 1,999 million in Q2 2024, primarily due to reduced retail credit service fees[10] - Total income for the three months ended June 2024 was RMB 5,976,217, representing a decline of 35.0% from RMB 9,270,322 in the prior year[31] - Net profit for the three months ended June 2024 was a loss of RMB 729,991, compared to a profit of RMB 1,003,618 in the same period of 2023[31] - Basic earnings per share for the three months ended June 2024 was a loss of RMB 0.69, compared to earnings of RMB 0.84 in the same period of 2023[31] Loan and Borrower Statistics - Total outstanding balance of loans decreased by 44.8% to RMB 235.2 billion as of June 30, 2024, from RMB 426.4 billion a year earlier[5] - New loans enabled in Q2 2024 were RMB 45.2 billion, down 15.5% from RMB 53.5 billion in Q2 2023, while new consumer finance loans increased by 23.6% to RMB 22.1 billion[5] - The cumulative number of borrowers increased by 17.4% to approximately 23.2 million as of June 30, 2024, from approximately 19.7 million a year earlier[5] - The company reported a decrease in customer loans to RMB 112,708,888 as of June 30, 2024, down from RMB 129,693,954 as of December 31, 2023[33] Expenses and Costs - Total expenses decreased by 20% to RMB 6,341 million (US$ 873 million) in Q2 2024 from RMB 7,957 million in Q2 2023[14] - Sales and marketing expenses decreased by 46% to RMB 1,372 million (US$ 189 million) in Q2 2024 from RMB 2,540 million in Q2 2023[15] - General and administrative expenses increased by 3.5% to RMB 511 million (US$ 70 million) in Q2 2024 from RMB 493 million in Q2 2023[15] - Credit impairment losses decreased by 14.6% to RMB 2,560 million (US$ 352 million) in Q2 2024 from RMB 2,998 million in Q2 2023[17] - Finance costs decreased by 90.2% to RMB 13 million (US$ 2 million) in Q2 2024 from RMB 136 million in Q2 2023[17] - Total expenses excluding credit impairment losses, finance costs, and other (gains)/losses decreased by 30% to RMB 3,485 million (US$ 480 million) in Q2 2024 from RMB 4,954 million in Q2 2023[14] Cash and Assets - The Company had RMB 37,114 million (US$ 5,107 million) in cash at bank as of June 30, 2024, down from RMB 39,599 million as of December 31, 2023[20] - Cash and cash equivalents at the end of the period as of June 30, 2024, were RMB 20,398,545, down from RMB 25,459,557 at the beginning of the period[35] - Net cash generated from operating activities for the three months ended June 2024 was RMB 2,997,614, an increase of 50.4% from RMB 1,994,730 in the same period of 2023[35] - The company’s total assets as of June 30, 2024, were RMB 216,930,102, a decrease from RMB 237,023,009 as of December 31, 2023[33] Strategic Initiatives - The company aims to deepen synergies with Ping An Group to enhance market position and operational efficiency[8] - No semi-annual dividend will be paid due to the net loss recorded for the six months ended June 30, 2024[21] Loan Quality - The non-performing loan (NPL) ratio for consumer finance loans was 1.4% as of June 30, 2024, down from 1.6% as of March 31, 2024[7]

Core Insights - Lufax Holding reported earnings per share of -19 cents for the second quarter of 2024 [1] - The company generated revenue of $822.36 million during the same period [1] Financial Performance - Earnings per share decreased to -19 cents, indicating a loss [1] - Revenue for the quarter was reported at $822.36 million, reflecting the company's financial performance [1]

Core Viewpoint Lufax Holding Ltd reported a significant decline in total income and a net loss for the second quarter of 2024, reflecting challenges in its business operations and a strategic shift towards improving asset quality and operational efficiency. Financial Highlights - Total income for Q2 2024 was RMB 5,976 million (US$ 822 million), down 35.5% from RMB 9,270 million in Q2 2023 [2][7] - Net loss for Q2 2024 was RMB 730 million (US$ 100 million), compared to a net profit of RMB 1,004 million in Q2 2023, marking a 172.7% decline [2][14] - For the first half of 2024, total income was RMB 12,940 million (US$ 1,781 million), a decrease of 33.1% from RMB 19,348 million in the same period of 2023 [3][7] Operational Highlights - The total outstanding balance of loans decreased by 44.8% to RMB 235.2 billion as of June 30, 2024, from RMB 426.4 billion a year earlier [4] - New loans enabled in Q2 2024 were RMB 45.2 billion, down 15.5% from RMB 53.5 billion in Q2 2023 [4] - The cumulative number of borrowers increased by 17.4% to approximately 23.2 million as of June 30, 2024, from approximately 19.7 million a year earlier [4] Income Breakdown - Technology platform-based income decreased by 51.0% to RMB 1,999 million (US$ 275 million) in Q2 2024, primarily due to reduced retail credit service fees and the exit from the Lujintong business [8][9] - Net interest income fell by 19.3% to RMB 2,716 million (US$ 374 million) in Q2 2024 [9] - Guarantee income decreased by 26.0% to RMB 850 million (US$ 117 million) in Q2 2024 [9] Expense Management - Total expenses decreased by 20.3% to RMB 6,341 million (US$ 873 million) in Q2 2024 from RMB 7,957 million in Q2 2023 [11] - Sales and marketing expenses dropped by 46.0% to RMB 1,372 million (US$ 189 million) in Q2 2024 [12][13] - Credit impairment losses decreased by 14.6% to RMB 2,560 million (US$ 352 million) in Q2 2024 [13] Balance Sheet and Cash Flow - Cash at bank was RMB 37,114 million (US$ 5,107 million) as of June 30, 2024, down from RMB 39,599 million at the end of 2023 [16] - The company reported a net cash generated from operating activities of RMB 2,997 million (US$ 412 million) in Q2 2024 [28]

Core Viewpoint - Lufax Holding Ltd announced the results of its annual general meeting, highlighting key resolutions approved by shareholders, including financial statements adoption and a special dividend declaration [1][2]. Financial Performance - The audited consolidated financial statements for the year ended December 31, 2023, were received and adopted by shareholders [1]. - A special dividend of US$1.21 per ordinary share or US$2.42 per ADS was declared and approved [1]. Board of Directors - Mr. Yong Suk CHO was re-elected as an executive director [2]. - Mr. Yonglin XIE was re-elected as a non-executive director [2]. - Mr. Weidong LI was re-elected as an independent non-executive director [2]. - The board of directors was authorized to fix the remuneration of the directors [2]. Auditor Appointment - PricewaterhouseCoopers was re-appointed as the auditor of the Company until the conclusion of the next annual general meeting [2]. - The board of directors was authorized to fix the auditor's remuneration for the year ending December 31, 2024 [2]. Company Overview - Lufax is a leading financial services enabler for small business owners in China, offering financing products tailored to their needs [3]. - 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 [3].

SHANGHAI, April 23, 2024 /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 that it will hold an annual general meeting of the Company's shareholders (the "AGM") at 10:00 a.m. Hong Kong time on May 30, 2024 at Room 3601, No. 1333 Lujiazui Ring Road, Pudong New District, Shanghai, the People's Republic of China, for the purposes of considering and, if thought fit, passing each of the ...

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 (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, 2023. 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 SECURITIES ...

Lufax Holding Ltd (NYSE:LU) Q1 2024 Earnings Conference Call April 22, 2024 9:00 PM ET Company Participants Xinyan Liu - Head of Board Office and Capital Markets Yong Cho - Co-CEO & Chairman of the Board Gregory Gibb - Co-CEO & Director David Choy - Chief Financial Officer Conference Call Participants Emma Xu - Bank of America Securities Chiyao Huang - Morgan Stanley Yada Li - CICC Operator Ladies and gentlemen, thank you for standing by, and welcome to Lufax Holding Limited First Quarter 2024 Earnings Call ...

SHANGHAI, April 22, 2024 /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 first quarter ended March 31, 2024. First Quarter 2024 Financial Highlights Total income was RMB6,964 million (US$964 million) in the first quarter of 2024, compared to RMB10,078 million in the same period of 2023. Net loss was RMB830 million (US$115 million) in the fi ...

Lufax Holding Ltd (NYSE:LU) Q4 2023 Results Conference Call March 21, 2024 9:00 PM ET Company Participants Xinyan Liu - Head of Board Office and Capital Markets Yong Cho - Co-CEO & Chairman of the Board Gregory Gibb - Co-CEO & Director Siu Choy - Chief Financial Officer Conference Call Participants Emma Xu - BofA Securities Richard Yu - Morgan Stanley Yada Li - CICC Operator Ladies and gentlemen, thank you for standing by, and welcome to Lufax Holding Limited Fourth Quarter 2023 Earnings Call. [Operator Ins ...