2023-11-14 11:12Financial Performance - Total income for Q3 2023 was RMB8,050 million (US$1,103 million), a decrease of 39.0% compared to RMB13,193 million in Q3 2022[3]. - Net profit for Q3 2023 was RMB131 million (US$18 million), down 90.3% from RMB1,355 million in Q3 2022[5]. - Total expenses decreased by 30.1% to RMB7,747 million (US$1,062 million) in Q3 2023 from RMB11,082 million in Q3 2022[14]. - Basic and diluted earnings per American Depositary Share (ADS) were both RMB0.04 (US$0.01) in Q3 2023, down from RMB0.58 in Q3 2022[18]. - Total income for Q3 2023 was RMB8,050 million (US$1,103 million), compared to RMB13,193 million in Q3 2022, representing a decline of 38.5%[30]. Loan and Credit Metrics - Outstanding balance of loans enabled decreased by 42.5% to RMB366.3 billion as of September 30, 2023, from RMB636.5 billion a year earlier[6]. - New loans enabled in Q3 2023 were RMB50.5 billion, a decrease of 59.2% compared to RMB123.8 billion in Q3 2022[6]. - The take rate for the retail credit enablement business was 7.8%, unchanged from Q3 2022[8]. - The C-M3 flow rate for total loans enabled was 1.1% in Q3 2023, up from 1.0% in Q2 2023[8]. - Non-performing loan (NPL) ratio 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 - Sales and marketing expenses fell by 43.7% to RMB2,290 million (US$314 million) in Q3 2023 from RMB4,071 million in Q3 2022[15]. - General and administrative expenses decreased by 15.6% to RMB500 million (US$69 million) in Q3 2023 from RMB592 million in Q3 2022[21]. - Credit impairment losses decreased by 24.1% to RMB3,001 million (US$411 million) in Q3 2023 from RMB3,956 million in Q3 2022[21]. - Finance costs decreased by 86.9% to RMB40 million (US$5 million) in Q3 2023 from RMB306 million in Q3 2022[21]. Cash Flow and Assets - Cash at bank as of September 30, 2023, was RMB39,781 million (US$5,452 million), down from RMB43,882 million as of December 31, 2022[19]. - Net cash generated from operating activities increased significantly from RMB 2,368,661 in Q3 2022 to RMB 5,057,374 in Q3 2023, marking a growth of approximately 113.4%[32]. - Net cash used in financing activities shifted from an inflow of RMB 4,459,025 in Q3 2022 to an outflow of RMB 8,053,741 in Q3 2023, indicating a change of approximately 280.5%[32]. - Cash and cash equivalents at the end of the period decreased from RMB 30,874,532 in Q3 2022 to RMB 18,828,729 in Q3 2023, a decline of about 39%[32]. - Total assets decreased from RMB 349,262,807 as of December 31, 2022, to RMB 259,176,715 as of September 30, 2023, representing a decline of approximately 25.8%[31]. Liabilities and Equity - Total liabilities decreased from RMB 254,476,132 to RMB 164,851,246, a reduction of approximately 35.2%[31]. - Retained earnings increased from RMB 64,600,234 to RMB 66,331,337, reflecting a growth of about 2.7%[31]. - The company reported a net cash decrease of RMB 10,708,782 for the nine months ended September 30, 2023, compared to a net increase of RMB 4,378,222 for the same period in 2022[32]. - Financial assets at fair value through profit or loss decreased from RMB 29,089,447 to RMB 25,131,471, a decline of approximately 13.8%[31]. - Restricted cash decreased from RMB 26,508,631 to RMB 18,353,723, representing a decline of about 30.9%[31]. Future Plans and Strategic Moves - The company plans to acquire 100% of Ping An OneConnect Bank, pending regulatory approval, to enhance its service offerings[7]. - The company plans to hold an earnings conference call on November 13, 2023, to discuss financial results[20]. - Lufax has established relationships with 91 financial institutions in China, enhancing its funding and credit capabilities[24].