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].
陆控(06623) - 2023 - 中期业绩