Core Viewpoint - Lufax Holding (06623.HK; LU.N) is undergoing significant management changes amid ongoing audit issues and delayed financial reporting, which raises concerns about its operational stability and governance [3][4]. Management Changes - Lufax appointed Ji Xiang as co-CEO and Wu Tao as Executive Vice President and Chief Marketing Officer, effective immediately [3]. - Ji Xiang, aged 43, previously worked at McKinsey for over ten years, most recently as a global partner overseeing retail banking in Asia, with an annual salary of RMB 3.3 million [3]. - Wu Tao has over 20 years of experience within the Ping An system and has held various senior roles, including CEO of Autohome [3]. Audit and Financial Reporting Issues - Lufax is facing audit troubles, having parted ways with its former auditors due to suspected related-party transactions, which were confirmed but not properly accounted for [4][5]. - The company has appointed Ernst & Young as its new auditor to reassess financial statements for 2022 and 2023, and to complete audits for 2024 and 2025 [5]. - Lufax has requested an extension until April 30, 2026, to submit its 2024 20-F form to the NYSE, indicating delays in financial reporting [5]. Financial Performance - As of September 30, 2025, Lufax reported a total outstanding loan balance of RMB 189.6 billion, a year-on-year decrease of 11.0% [6]. - The retail credit empowerment business revenue rate was 13.0%, an increase of 3.3 percentage points year-on-year [6]. - The overdue rate for loans exceeding 30 days was 5.1% as of September 30, 2025, up from 4.6% as of June 30, 2025 [6].

Group 1: Management Changes - Lufax Holdings has appointed Ji Xiang as co-CEO and Wu Tao as Executive Vice President and Chief Marketing Officer, effective immediately [1] - Ji Xiang, aged 43, previously worked at McKinsey for over ten years, serving as a global partner overseeing retail banking in Asia, with an initial three-year term and an annual salary of RMB 3.3 million [1] - Wu Tao has over 20 years of experience within the Ping An system and has held various senior positions, including CEO of Autohome [1] Group 2: Audit and Financial Reporting Issues - Lufax Holdings is currently facing audit issues and delays in financial reporting, having parted ways with its former auditors due to suspected related party transactions [2] - The company has appointed Ernst & Young as its new auditor to review financial statements for 2022 and 2023, and has requested an extension until April 30, 2026, for submitting its 2024 20-F form [3] - As of September 30, 2025, the total outstanding loan balance was RMB 189.6 billion, a year-on-year decrease of 11.0%, with a retail credit empowerment business income rate of 13.0%, up 3.3 percentage points year-on-year [3]

Core Viewpoint - The company *ST Xinchao (New Tide Energy) is undergoing significant changes in its auditing arrangements, having recently appointed Zhongshun Zhonghuan as its new auditor after a tumultuous relationship with previous firms, which has implications for its financial reporting and compliance status [1][2][8]. Group 1: Auditing Changes - *ST Xinchao has appointed Zhongshun Zhonghuan as its auditing firm for the 2025 fiscal year, marking the second change in auditors within the year [1]. - The company previously terminated its relationship with Lixin Accounting Firm after it issued an "unable to express opinion" audit report for the 2024 financial statements [3][4]. - Prior to Lixin, *ST Xinchao had engaged Zhongrui Cheng Accounting Firm, which resigned due to the complexity of the audit work exceeding initial expectations [1][3]. Group 2: Legal Disputes - The conflict with Lixin escalated to legal action, with *ST Xinchao suing for the return of 3.5 million yuan in audit fees, claiming negligence in the audit process [5][6]. - The lawsuit includes demands for Lixin to retract its audit reports and issue new ones, alongside compensation for legal fees [5]. Group 3: Financial and Operational Context - The company is facing significant challenges, including a risk of delisting, as indicated by its recent "ST" designation due to the audit issues [4][9]. - The recent resolution of three lawsuits in the U.S. related to its oil and gas assets may alleviate some operational pressures, but internal governance and achieving a standard audit opinion remain critical for the company's future [9]. Group 4: New Auditor's Profile - Zhongshun Zhonghuan, established in 1987, has a strong background in auditing, with 21.72 billion yuan in total revenue for 2024, including 5.84 billion yuan from securities-related services [8]. - The firm has experience in the mining sector, which is relevant to *ST Xinchao's operations, having audited six other companies in the same industry [8]. - However, Zhongshun Zhonghuan has faced administrative penalties in the past three years, raising concerns about its reliability [8].