SHANGHAI, Nov. 23,
2022 /PRNewswire/ -- Lufax Holding Ltd ("Lufax"
or the "Company") (NYSE: LU), a leading technology-empowered
personal financial services platform in China, today announced its unaudited financial
results for the third quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights
- Total income decreased by 17.2% to RMB13,193 million (US$1,855 million) in the third quarter of 2022
from RMB15,924 million in the same
period of 2021.
- Net profit decreased by 67.1% to RMB1,355 million (US$190
million) in the third quarter of 2022 from RMB4,115 million in the same period of 2021.
(In millions
except percentages, unaudited)
|
Three Months Ended
September 30,
|
|
|
2021
|
2022
|
YoY
|
|
RMB
|
RMB
|
USD
|
|
Total income
|
15,924
|
13,193
|
1,855
|
(17.2 %)
|
Total
expenses
|
(9,936)
|
(11,082)
|
(1,558)
|
11.5 %
|
Total expenses
excluding credit and asset impairment losses, financial costs and
other (gains)/losses
|
(7,730)
|
(6,746)
|
(948)
|
(12.7 %)
|
Credit and asset
impairment losses, financial costs and other
(gains)/losses
|
(2,205)
|
(4,336)
|
(610)
|
96.6 %
|
Net profit
|
4,115
|
1,355
|
190
|
(67.1 %)
|
Third Quarter 2022 Operational Highlights
Retail credit facilitation business:
- Outstanding balance of loans facilitated decreased by 1.3% to
RMB636.5 billion as of September 30, 2022 from RMB645.1 billion as of September 30, 2021.
- Cumulative number of borrowers increased by 15.3% to
approximately 18.7 million as of September
30, 2022 from approximately 16.2 million as of September 30, 2021.
- During the third quarter of 2022, excluding the consumer
finance subsidiary, 87.3% of new loans facilitated were disbursed
to small business owners, up from 80.5% in the same period of
2021.
- New loans facilitated decreased by 27.9% to RMB123.8 billion in the third quarter of 2022
from RMB171.7 billion in the same
period of 2021.
- During the third quarter of 2022, excluding the consumer
finance subsidiary, the Company bore risk on 21.7% of its new loans
facilitated, up from 19.6% in the same period of 2021.
- As of September 30, 2022,
including the consumer finance subsidiary, the Company bore risk on
22.5% of its outstanding balance, up from 14.8% as of September 30, 2021. Credit enhancement partners
bore risk on 73.1% of outstanding balance, among which Ping An
P&C accounted for a majority.
- For the third quarter of 2022, the Company's retail credit
facilitation revenue take rate[1] based on loan balance
was 7.8%, as compared to 9.7% for the third quarter of 2021.
- C-M3 flow rate[2] for the total loans the Company
had facilitated was 0.8% in the third quarter of 2022, as compared
to 0.7% in the second quarter of 2022. Flow rates for the general
unsecured loans and secured loans the Company had facilitated were
0.9% and 0.4%, respectively, in the third quarter of 2022, as
compared to 0.8% and 0.3%, respectively, in the second quarter of
2022.
- Days past due ("DPD") 30+ delinquency rate[3] for
the total loans the Company had facilitated was 3.6% as of
September 30, 2022, as compared to
3.1% as of June 30, 2022. DPD 30+
delinquency rate for general unsecured loans was 4.2% as of
September 30, 2022, as compared to
3.6% as of June 30, 2022. DPD 30+
delinquency rate for secured loans was 1.6% as of September 30, 2022, as compared to 1.4% as of
June 30, 2022.
- DPD 90+ delinquency rate[4] for the total loans
facilitated was 2.1% as of September 30,
2022, as compared to 1.7% as of June
30, 2022. DPD 90+ delinquency rate for general unsecured
loans was 2.4% as of September 30,
2022, as compared to 2.0% as of June
30, 2022. DPD 90+ delinquency rate for secured loans was
0.9% as of September 30, 2022, as
compared to 0.7% as of June 30,
2022.
Wealth management business:
- Total number of registered users grew to 52.6 million as of
September 30, 2022 from 48.7 million
as of September 30, 2021.
- Total number of active investors grew to 15.5 million as of
September 30, 2022 from 15.3 million
as of September 30, 2021.
- Total client assets decreased by 2.0% to RMB416.8 billion as of September 30, 2022 from RMB425.1 billion as of September 30, 2021.
- The 12-month investor retention rate was 95.1% as of
September 30, 2022, as compared to
95.9% as of September 30, 2021.
- Contribution to total client assets from customers with
investments of more than RMB300,000
on the Company's platform increased to 81.8% as of September 30, 2022 from 80.8% as of September 30, 2021.
- During the third quarter of 2022, the annualized take
rate[5] for current products and services on the
Company's wealth management platform was 34.7 bps, down from 43.1
bps during the second quarter of 2022.
Mr. YongSuk Cho, Chairman and
Chief Executive Officer of Lufax, commented, "The third quarter was
a challenging time for our company and for our industry as a whole.
As our core client base of small business owners continued to feel
an outsized impact from a deteriorating macro environment, we faced
rising credit impairment losses and credit enhancement costs,
weighing on our profitability. In contrast, the regulatory
environment is becoming increasingly stabilized; oversight has been
normalized and there is an absence of significant outstanding
issues for our company. While credit quality deterioration advanced
across the board in the third quarter, we witnessed growing
differences in economic resilience and significant divergence in
credit performance by region. Taking Shanghai for example, the C-M3 ratio for
general unsecured loans spiked to 2.3% in Q2 2022, but within a
short period of time after re-opening, quickly returned to the
pre-lockdown level of 0.5% in Q3 2022, demonstrating strong
resilience. On average, the C-M3 ratio for top performing regions,
which mainly consist of cities and regions with strong economic
foundations improved by 1 basis point in the third quarter compared
to the second quarter, while the
average C-M3 ratio for average performing regions and less
desirable performing regions deteriorated by 13 and 20 basis
points, respectively, during the same period. Today, about
two-thirds of our existing business is in cities and regions where
we believe the economic foundations are stronger and will underpin
and catalyze our recovery from current downturn. This is clearly a
challenge for us but we are confident in our ability to execute. We
will adjust our business strategies by deepening our focus on
well-rated small business owners, in more resilient cities, with
increased reliance on our direct sales force channel. In the
nearer-term, we expect this adjusted strategy will generate new
loan facilitation volumes at approximately two-thirds of the
volumes we have generated in recent years. We will also use this
business re-prioritization to continue to upgrade our technology,
operations, and risk management with the objective of strengthening
our long-term market leadership in the small business owner
segment. Fortified by our competitive advantages, our fine-tuned
strategy, our pro-regulation business model, our strong balance
sheet and long-term partnerships with financial institutions, we
will navigate through this difficult period."
Mr. Gregory Gibb, Co-Chief
Executive Officer of Lufax, commented, "The deterioration in credit
quality during the third quarter negatively impacted our results,
with new loan volumes declining and credit impairment losses
rising. Overall profitability has also been negatively impacted by
higher insurance premium. In light of the challenges, we have
already tightened customer selection and new business initiated in
the last several quarters has delivered better and more resilient
performance. We will continue to take the path of
strengthening collection on existing vintages and building up a
more sustainable and profitable new portfolio, while at the same
time we will refine our channel management and optimize our direct
sales force to be more nimble, productive and effective in customer
targeting and selection. Though this will result in reduced new
business volumes and gross revenues in the medium-term, new
business should generate better results as compared to the
historical loan vintages as a whole and drive a U-shaped recovery
in our financial performance. Facing the uncertainties ahead, we
will continue strengthening our operating capabilities and our
partnerships with financial institutions. We have recently launched
a new small business owner ecosystem, LuDianTong, an open-platform
design which we populated with
digital operating tools and industry-focused content for SBOs to
operate their businesses more effectively. We are also continuing
to develop LuJinTong, which helps banks with strong risk
capabilities acquire borrowers directly through dispersed sourcing
agents nation-wide. In addition, we have also gained 16 new
bank partners under our risk-sharing model compared to a year ago.
Looking ahead, our bottom-line recovery will be driven by the
evolving credit performance and run-off speed of our historical
vintages, and our prioritized new businesses' growth rate. Finally,
we would like to thank our shareholders for their continuous
support to our business. In October, we distributed our first half
2022 dividends of USD0.17 per ADS,
and we will continue to deliver value to our shareholders."
Mr. David Choy, Chief Financial
Officer of Lufax, commented, "Faced with worsening macroeconomic
headwinds, we dedicated ourselves to building a more sustainable
business model and improving operational resilience. As a result,
we recorded RMB13.2 billion in total
income for the third quarter and reduced our operating-related
expenses by 12.7% year over year. Our balance sheet remains strong,
with our cash at bank balance increasing to RMB45.8 billion. In addition, liquid
assets[6] maturing in 90 days or less amounted to
46.5 billion as of the end of September
2022. Our guarantee company's net capital stood at 47.8
billion and the leverage was stable at 2.1x, compared to a
regulatory allowance of 10x. Against a challenging macro backdrop,
this performance demonstrates the efficacy of our business model
and gives us confidence as we strive to deliver long term growth
and sustainable value for our shareholders."
Third Quarter 2022 Financial Results
TOTAL INCOME
Total income decreased by 17.2% to RMB13,193 million (US$1,855 million) in the third quarter of 2022
from RMB15,924 million in the same
period of 2021. The Company's revenue mix changed with the
evolution of its business model, as it gradually bore more credit
risk and increased funding from consolidated trust plans that
provided lower funding costs.
|
Three Months Ended
September 30,
|
|
(In millions
except percentages, unaudited)
|
2021
|
2022
|
YoY
|
|
RMB
|
% of total
income
|
RMB
|
% of total
income
|
|
Technology
platform-based income
|
9,567
|
60.1 %
|
6,672
|
50.6 %
|
(30.3 %)
|
Retail
credit facilitation service fees
|
9,100
|
57.1 %
|
6,308
|
47.8 %
|
(30.7 %)
|
Wealth
management transaction and service fees
|
467
|
2.9 %
|
364
|
2.8 %
|
(22.1 %)
|
Net interest
income
|
3,802
|
23.9 %
|
4,618
|
35.0 %
|
21.5 %
|
Guarantee
income
|
1,293
|
8.1 %
|
1,863
|
14.1 %
|
44.1 %
|
Other income
|
997
|
6.3 %
|
(129)
|
(1.0 %)
|
(112.9 %)
|
Investment
income
|
266
|
1.7 %
|
168
|
1.3 %
|
(36.8 %)
|
Share of net profits of
investments accounted
for using the equity method
|
(2)
|
0.0 %
|
0
|
0.0 %
|
(100.0 %)
|
Total income
|
15,924
|
100.0 %
|
13,193
|
100.0 %
|
(17.2 %)
|
- Technology platform-based income decreased by
30.3% to RMB6,672 million
(US$938 million) in the third quarter
of 2022 from RMB9,567 million in the
same period of 2021 due to a decrease in new loan sales, client
assets, and service fees.
- Retail credit facilitation service fees decreased by 30.7%
to RMB6,308 million (US$887 million) in the third quarter of 2022 from
RMB9,100 million in the same period
of 2021, mainly due to a decrease in new loan sales and a lower
take rate, and changes in the Company's business model that
resulted in more income being recognized in net interest income and
guarantee income.
- Wealth management transaction and service fees decreased
by 22.1% to RMB364 million (US$51 million) in the third
quarter of 2022 from RMB467 million in the same period of
2021. The decrease was mainly driven by the decrease in fees
generated from the Company's current products, partially offset by
the increase in fees generated from platform
services[7].
- Net interest income increased by 21.5% to
RMB4,618 million (US$649 million) in the third quarter of 2022 from
RMB3,802 million in the same period
of 2021, mainly as a result of 1) the Company's increased usage of
trust funding channels that were consolidated by the Company (as of
September 30, 2022, the Company's
on-balance sheet loans accounted for 36.9% of its total loan
balance under management, as compared to 31.2% as of September 30, 2021), and 2) an increase in the
volume of new consumer finance loans.
- Guarantee income increased by 44.1% to
RMB1,863 million (US$262 million) in the third quarter of 2022 from
RMB1,293 million in the same period
of 2021, primarily due to the increase in the loans for which the
Company bore credit risk.
- Other income was negative RMB129 million (negative US$18 million) in the third quarter of 2022
compared to other income of RMB997
million in the same period of 2021, majority of the
decreases were due to 1) a refund of account management fees to the
Company's primary credit enhancement partner as a result of
worse-than-expected collection performance, and 2) the narrowing
down of service scope and change of fee structure that the Company
provided and charged to its primary credit enhancement partner
since this quarter.
- Investment income decreased to RMB168 million (US$24
million) in the third quarter of 2022 from RMB266 million in the same period of 2021, mainly
due to a decrease in investment assets.
TOTAL EXPENSES
Total expenses increased by 11.5% to RMB11,082 million (US$1,558 million) in the third quarter of 2022
from RMB9,936 million in the same
period of 2021. This increase was mainly driven by credit
impairment losses, since credit impairment losses increased by
137.7% to RMB3,956 million
(US$556 million) in the third quarter
of 2022 from RMB1,664 million in the
same period of 2021. Total expenses excluding credit impairment
losses, asset impairment losses, finance costs, and other
(gains)/losses decreased by 12.7% to RMB6,746 million (US$948
million) in the third quarter of 2022 from RMB7,730 million in the same period of 2021.
|
Three Months Ended
September 30,
|
|
(In millions
except percentages, unaudited)
|
2021
|
2022
|
YoY
|
|
RMB
|
% of total
income
|
RMB
|
% of total
income
|
|
Sales and marketing
expenses
|
4,609
|
28.9 %
|
4,071
|
30.9 %
|
(11.7 %)
|
General and
administrative expenses
|
937
|
5.9 %
|
592
|
4.5 %
|
(36.8 %)
|
Operation and servicing
expenses
|
1,660
|
10.4 %
|
1,600
|
12.1 %
|
(3.6 %)
|
Technology and
analytics expenses
|
524
|
3.3 %
|
484
|
3.7 %
|
(7.6 %)
|
Credit impairment
losses
|
1,664
|
10.4 %
|
3,956
|
30.0 %
|
137.7 %
|
Asset impairment
losses
|
410
|
2.6 %
|
68
|
0.5 %
|
(83.4 %)
|
Finance
costs
|
168
|
1.1 %
|
306
|
2.3 %
|
82.1 %
|
Other (gains)/losses -
net
|
(36)
|
(0.2 %)
|
7
|
0.1 %
|
(119.4 %)
|
Total
expenses
|
9,936
|
62.4 %
|
11,082
|
84.0 %
|
11.5 %
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses decreased by 11.7%
to RMB4,071 million (US$572 million) in the third quarter of 2022 from
RMB4,609 million in the same period
of 2021.
- Borrower acquisition expenses decreased by 20.5% to
RMB2,030 million (US$285 million) in the third quarter of 2022 from
RMB2,553 million in the same period
of 2021. The decrease was mainly due to decreased new loan sales
and reductions in commissions.
- Investor acquisition and retention expenses decreased by
62.8% to RMB81 million (US$11 million) in the third quarter of 2022 from
RMB218 million in the same period of
2021, mostly due to the decrease in sales of current products.
- General sales and marketing expenses increased by 6.6% to
RMB1,960 million (US$276 million) in the third quarter of 2022 from
RMB1,839 million in the same
period of 2021. This increase was primarily due to the increase in
sales costs related to platform services and the increase in staff
costs for sales and marketing personnel.
- General and administrative expenses decreased by
36.8% to RMB592 million (US$83 million) in the third quarter of 2022 from
RMB937 million in the same period of
2021 as a result of the Company's expense control measures.
- Operation and servicing expenses decreased by
3.6% to RMB1,600 million
(US$225 million) in the third quarter
of 2022 from RMB1,660 million in the
same period of 2021, primarily due to the decrease of trust plan
management expenses and the Company's expense control
measures.
- Technology and analytics expenses decreased by
7.6% to RMB484 million (US$68 million) in the third quarter of 2022 from
RMB524 million in the same period of
2021, as a result of the Company's improved efficiency.
- Credit impairment losses increased by 137.7% to
RMB3,956 million (US$556 million) in the third quarter of 2022 from
RMB1,664 million in the same period
of 2021, mainly driven by 1) the increase of provision and
indemnity loss driven by increased risk exposure, and 2) the change
in credit performance due to the impact of the COVID-19
outbreak.
- Asset impairment losses decreased by 83.4% to
RMB68 million (US$10 million) in the third quarter of 2022 from
RMB410 million in the same period of
2021, mainly due to the higher base of impairment loss in the third
quarter of 2021 driven by impairment loss of intangible assets and
goodwill.
- Finance costs increased by 82.1% to RMB306 million (US$43
million) in the third quarter of 2022 from RMB168 million in the same period of 2021, mainly
due to an increase in interest expense.
- Other losses were RMB7
million (US$1 million) in the
third quarter of 2022 compared to other gains of RMB36 million in the same period of 2021, mainly
due to the foreign exchange loss in the third quarter of 2022.
[1] The
take rate of retail credit facilitation business is calculated by
dividing the aggregated amount of retail credit facilitation
service fee, net interest income, guarantee income and the penalty
fees and account management fees by the average outstanding balance
of loans facilitated for each period.
|
[2] Flow rate estimates the
percentage of current loans that will become non-performing at the
end of three months, and is defined as the product of (i) the loan
balance that is overdue from 1 to 29 days as a percentage of the
total current loan balance of the previous month, (ii) the loan
balance that is overdue from 30 to 59 days as a percentage of the
loan balance that was overdue from 1 to 29 days in the previous
month, and (iii) the loan balance that is overdue from 60 to 89
days as a percentage of the loan balance that was overdue from 30
days to 59 days in the previous month. Loans from legacy products
and consumer finance subsidiary are excluded from the flow rate
calculation.
|
[3] DPD 30+ delinquency rate
refers to the outstanding balance of loans for which any payment is
30 to 179 calendar days past due divided by the outstanding balance
of loans. Loans from legacy products and consumer finance
subsidiary are excluded from the calculation.
|
[4] DPD 90+ delinquency rate
refers to the outstanding balance of loans for which any payment is
90 to 179 calendar days past due divided by the outstanding balance
of loans. Loans from legacy products and consumer finance
subsidiary are excluded from the calculation.
|
[5] The
take rate for the wealth management business is calculated by
dividing total wealth management transaction and service fees for
current products by average client assets in the Company's current
products. Part of the wealth management transaction and service
fees do not generate client assets.
|
[6] The
liquid assets consist of Cash at bank, Financial assets at
amortized cost, Financial assets purchased under reverse repurchase
agreements and Financial assets at fair value through profit or
loss with a maturity of 90 days or less as of September 30,
2022.
|
[7] Platform services are provided by
the Company's platform, and this income is primarily based on
transaction volume.
|
NET PROFIT
Net profit decreased by 67.1% to RMB1,355 million
(US$190 million) in the third quarter
of 2022 from RMB4,115 million in
the same period of 2021, driven by the aforementioned factors.
EARNINGS PER ADS
Basic and diluted earnings per American Depositary Share ("ADS")
were both RMB0.58 (US$0.08) in the third quarter of 2022.
BALANCE SHEET
The Company had RMB45,803 million
(US$6,439 million) in cash at
bank as of September 30, 2022, as
compared to RMB34,743 million as of
December 31, 2021. Net assets of the
Company amounted to RMB95,097 million
(US$13,369 million) as of
September 30, 2022, as compared to
RMB94,559 million as of December 31, 2021.
Recent Developments
Changes in Board Composition
Mr. Rui Li, Mr. Hanjie Ou and Mr. Yunwei
Tang have tendered their resignations as directors of the
Company and will no longer serve as members of the Company's board
of directors (the "Board") or any committee of the Board, effective
as of November 23, 2022. Ms.
Fangfang Cai, Mr. Guangheng Ji and
Ms. Xin Fu have each been appointed
as a director of the Company, and Mr. David
Xianglin Li, currently an independent director of the
Company, has been appointed as a member of the audit committee of
the Board, effective as of November 23,
2022.
Ms. Fangfang Cai has been serving
as an executive director of Ping An Insurance (Group) Company of
China, Ltd. (together with its
subsidiaries, "Ping An Group") since July
2014, chief human resources officer of Ping An Group since
March 2015, and deputy general
manager of Ping An Group since December
2019. Ms. Cai also serves as a director of a number of
controlled subsidiaries of Ping An Group, including Ping An Bank, Ping An
Life, Ping An Property & Casualty, and Ping An Asset
Management. Ms. Cai has over 26 years of experience in the finance
industry. Ms. Cai served as vice chief human resources officer of
Ping An Group from September 2013 to
March 2015, vice chief financial
officer and the general manager of the planning department of Ping
An Group from February 2012 to
September 2013, deputy general
manager and then general manager of compensation planning and
management department at human resources center of Ping An Group
from October 2009 to February 2012. Prior to joining Ping An Group,
Ms. Cai served as consulting director of Watson Wyatt
Consultancy (Shanghai) Ltd. from
June 2006 to July 2007 and audit director on the financial
industry of British Standards Institution Management Systems
Certification Co., Ltd from July 2003
to June 2006. Ms. Cai obtained a
master's degree in accounting from The University of New South Wales in May 2000.
Mr. Guangheng Ji has been serving as senior vice president of
Ping An Group since March 2022. Mr.
Ji served as the chairman of the board of directors of the Company
from January 2021 to August 2022 and the co-chairman of the board of
directors of the Company from April
2020 to January 2021. Mr. Ji
has over 25 years of experience in the finance industry. Mr. Ji
served as a number of positions at Industrial and Commercial Bank
of China from July 1994 to April
2009, vice president of Shanghai Pudong Development Bank
Co., Ltd., a company listed on the Shanghai Stock Exchange (SSE:
600000), from April 2009 to
November 2015, chairman of the board
of Shanghai Rural Commercial Bank Co., Ltd. from November 2015 to March
2019, and vice chairman of the board and co-president of
Baoneng Group from March 2019 to
March 2020. Mr. Ji obtained his
bachelor's and master's degrees in geography and Ph.D. degree in
economics from Peking University in July
1991, July 1994 and
July 2009, respectively.
Ms. Xin Fu has been serving as
the chief operating officer of Ping An Group since March 2022 and director of the strategic
development center of Ping An Group since March 2020. She joined Ping An Group in
October 2017 as general manager of
its planning department, and served as deputy chief financial
officer of Ping An Group between March
2020 and March 2022. Prior to
joining Ping An Group, Ms. Fu served as a partner of Roland Berger management consulting financial services
practices and an executive director of PricewaterhouseCoopers,
where she had over ten years of experience in planning and
implementing finance and fintech related projects. Ms. Fu has also
been serving as a non-executive director of OneConnect Financial
Technology Co., Ltd. (NYSE: OCFT; HKG: 6638) since November 2022. Ms. Fu obtained a master's degree
in business administration from Shanghai Jiao Tong University in
June 2012.
Business Outlook
For the full year of 2022, the Company expects its new loans
facilitated to decrease by 23% to 24% year over year to the range
of RMB490 billion to RMB495 billion, client assets to decrease by 1%
to 10% year over year to the range of RMB390
billion to RMB430 billion,
total income to decrease by 6% to 8% year over year to the range of
RMB57.0 billion to RMB58.0 billion, and net profit to decrease by
47% to 49% year over year to the range of RMB8.5 billion to RMB8.9
billion.
These forecasts reflect the Company's current and preliminary
views on the market and operational conditions, which are subject
to change.
Conference Call Information
The Company's management will hold an earnings conference call
at 8:00 P.M. U.S. Eastern Time on
Wednesday, November 23, 2022
(9:00 A.M. Beijing Time on
Thursday, November 24, 2022) to
discuss the financial results. For participants who wish to join
the call, please complete online registration using the link
provided below in advance of the conference call. Upon registering,
each participant will receive a participant dial-in number, the
Direct Event passcode, and a unique access PIN, which can be used
to join the conference call.
Registration Link:
https://www.netroadshow.com/events/login?show=bb2672a0&confId=44087
A replay of the conference call will be accessible through
November 30, 2022 (dial-in numbers:
+1 (866) 813-9403 or +1 (226) 828-7578; replay access code:
399471). A live and archived webcast of the conference call will
also be available at the Company's investor relations website at
https://ir.lufaxholding.com.
About Lufax
Lufax Holding Ltd is a leading technology-empowered personal
financial services platform in China. Lufax Holding Ltd primarily utilizes
its customer-centric product offerings and offline to-online
channels to provide retail credit facilitation services to small
business owners and salaried workers in China as well as tailor-made wealth management
solutions to China's rapidly
growing middle class. The Company has implemented a unique,
capital-light, hub-and-spoke business model combining purpose-built
technology applications, extensive data, and financial services
expertise to effectively facilitate the right products to the right
customers.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
U.S. dollars are made at a rate of RMB7.1135 to US$1.00, the rate in effect as of September 30, 2022, as certified for customs
purposes by the Federal Reserve Bank of New York.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. Statements
that are not historical facts, including statements about Lufax's
beliefs and expectations, are forward-looking statements. Lufax has
based these forward-looking statements largely on its current
expectations and projections about future events and financial
trends, which involve known or unknown risks, uncertainties and
other factors, all of which are difficult to predict and many of
which are beyond the Company's control. These forward-looking
statements include, but are not limited to, statements about
Lufax's goals and strategies; Lufax's future business development,
financial condition and results of operations; expected changes in
Lufax's income, expenses or expenditures; expected growth of the
retail credit facility and wealth management markets; Lufax's
expectations regarding demand for, and market acceptance of, its
services; Lufax's expectations regarding its relationship with
borrowers, platform investors, funding sources, product providers
and other business partners; general economic and business
conditions; and government policies and regulations relating to the
industry Lufax operates in. Forward-looking statements involve
inherent risks and uncertainties. Further information regarding
these and other risks is included in Lufax's filings with the U.S.
Securities and Exchange Commission. All information provided in
this press release is as of the date of this press release, and
Lufax does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
Investor Relations Contact
Lufax Holding Ltd
Email: Investor_Relations@lu.com
ICR, LLC
Robin Yang
Tel: +1 (646) 308-0546
Email: lufax.ir@icrinc
LUFAX HOLDING
LTD
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED INCOME STATEMENTS
|
(All amounts in
thousands, except share data, or otherwise noted)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Technology
platform-based income
|
9,566,839
|
|
6,672,443
|
|
937,997
|
|
29,458,153
|
|
23,344,095
|
|
3,281,661
|
Retail credit
facilitation service fees
|
9,100,213
|
|
6,308,263
|
|
886,802
|
|
27,959,069
|
|
21,920,355
|
|
3,081,515
|
Wealth management
transaction and service fees
|
466,626
|
|
364,180
|
|
51,196
|
|
1,499,084
|
|
1,423,740
|
|
200,146
|
Net interest
income
|
3,802,306
|
|
4,618,100
|
|
649,202
|
|
9,940,117
|
|
14,611,906
|
|
2,054,109
|
Guarantee
income
|
1,293,440
|
|
1,863,293
|
|
261,938
|
|
2,735,404
|
|
5,701,766
|
|
801,542
|
Other income
|
996,942
|
|
(128,500)
|
|
(18,064)
|
|
3,106,310
|
|
1,107,077
|
|
155,630
|
Investment
income
|
266,425
|
|
167,809
|
|
23,590
|
|
792,887
|
|
1,031,031
|
|
144,940
|
Share of net profits of
investments accounted for
using the equity method
|
(1,572)
|
|
138
|
|
19
|
|
(29,418)
|
|
1,515
|
|
213
|
Total
income
|
15,924,380
|
|
13,193,283
|
|
1,854,682
|
|
46,003,453
|
|
45,797,390
|
|
6,438,095
|
Sales and marketing
expenses
|
(4,609,097)
|
|
(4,070,803)
|
|
(572,264)
|
|
(13,158,261)
|
|
(12,050,538)
|
|
(1,694,038)
|
General and
administrative expenses
|
(937,181)
|
|
(592,216)
|
|
(83,252)
|
|
(2,588,459)
|
|
(2,079,697)
|
|
(292,359)
|
Operation and servicing
expenses
|
(1,660,244)
|
|
(1,599,564)
|
|
(224,863)
|
|
(4,657,930)
|
|
(4,770,562)
|
|
(670,635)
|
Technology and
analytics expenses
|
(523,926)
|
|
(483,617)
|
|
(67,986)
|
|
(1,487,347)
|
|
(1,414,885)
|
|
(198,901)
|
Credit impairment
losses
|
(1,663,958)
|
|
(3,955,506)
|
|
(556,056)
|
|
(4,110,742)
|
|
(10,291,935)
|
|
(1,446,817)
|
Asset impairment
losses
|
(409,547)
|
|
(68,051)
|
|
(9,566)
|
|
(411,596)
|
|
(420,007)
|
|
(59,044)
|
Finance
costs
|
(168,090)
|
|
(305,879)
|
|
(43,000)
|
|
(728,156)
|
|
(737,950)
|
|
(103,739)
|
Other gains/(losses) -
net
|
36,121
|
|
(6,631)
|
|
(932)
|
|
199,572
|
|
(415,322)
|
|
(58,385)
|
Total
expenses
|
(9,935,922)
|
|
(11,082,267)
|
|
(1,557,920)
|
|
(26,942,919)
|
|
(32,180,896)
|
|
(4,523,919)
|
Profit before income
tax expenses
|
5,988,458
|
|
2,111,016
|
|
296,762
|
|
19,060,534
|
|
13,616,494
|
|
1,914,176
|
Income tax
expenses
|
(1,873,012)
|
|
(756,377)
|
|
(106,330)
|
|
(5,247,768)
|
|
(4,035,520)
|
|
(567,304)
|
Net profit for the
period
|
4,115,446
|
|
1,354,639
|
|
190,432
|
|
13,812,766
|
|
9,580,974
|
|
1,346,872
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the
Group
|
4,129,300
|
|
1,326,757
|
|
186,513
|
|
13,898,293
|
|
9,514,661
|
|
1,337,550
|
Non-controlling
interests
|
(13,854)
|
|
27,882
|
|
3,920
|
|
(85,527)
|
|
66,313
|
|
9,322
|
Net profit for the
period
|
4,115,446
|
|
1,354,639
|
|
190,432
|
|
13,812,766
|
|
9,580,974
|
|
1,346,872
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
-Basic earnings per
share
|
3.51
|
|
1.16
|
|
0.16
|
|
11.69
|
|
8.31
|
|
1.17
|
-Diluted earnings per
share
|
3.31
|
|
1.16
|
|
0.16
|
|
10.91
|
|
7.97
|
|
1.12
|
-Basic earnings per
ADS
|
1.76
|
|
0.58
|
|
0.08
|
|
5.85
|
|
4.16
|
|
0.58
|
-Diluted earnings per
ADS
|
1.66
|
|
0.58
|
|
0.08
|
|
5.46
|
|
3.99
|
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LUFAX HOLDING
LTD
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(All amounts in
thousands, except share data, or otherwise noted)
|
|
|
As of December
31,
|
|
As of
September 30,
|
|
2021
|
|
2022
|
|
RMB
|
|
RMB
|
|
USD
|
Assets
|
|
|
|
|
|
Cash at bank
|
34,743,188
|
|
45,802,911
|
|
6,438,871
|
Restricted
cash
|
30,453,539
|
|
27,021,836
|
|
3,798,670
|
Financial assets at
fair value through profit or loss
|
31,023,211
|
|
25,564,173
|
|
3,593,755
|
Financial assets at
amortized cost
|
3,784,613
|
|
4,749,482
|
|
667,672
|
Financial assets
purchased under reverse repurchase agreements
|
5,527,177
|
|
-
|
|
-
|
Accounts and other
receivables and contract assets
|
22,344,773
|
|
18,477,641
|
|
2,597,546
|
Loans to
customers
|
214,972,110
|
|
232,229,739
|
|
32,646,340
|
Deferred tax
assets
|
4,873,370
|
|
3,978,163
|
|
559,241
|
Property and
equipment
|
380,081
|
|
314,618
|
|
44,228
|
Investments accounted
for using the equity method
|
459,496
|
|
41,005
|
|
5,764
|
Intangible
assets
|
899,406
|
|
892,068
|
|
125,405
|
Right-of-use
assets
|
804,990
|
|
764,247
|
|
107,436
|
Goodwill
|
8,918,108
|
|
8,918,108
|
|
1,253,688
|
Other assets
|
1,249,424
|
|
1,915,345
|
|
269,255
|
Total
assets
|
360,433,486
|
|
370,669,336
|
|
52,107,870
|
Liabilities
|
|
|
|
|
|
Payable to platform
users
|
2,747,891
|
|
1,987,045
|
|
279,334
|
Borrowings
|
25,927,417
|
|
35,780,452
|
|
5,029,936
|
Bond payable
|
-
|
|
2,150,793
|
|
302,354
|
Current income tax
liabilities
|
8,222,684
|
|
1,149,341
|
|
161,572
|
Accounts and other
payables and contract liabilities
|
8,814,255
|
|
11,638,679
|
|
1,636,140
|
Payable to investors of
consolidated structured entities
|
195,446,140
|
|
193,610,897
|
|
27,217,389
|
Financial guarantee
liabilities
|
2,697,109
|
|
4,510,096
|
|
634,019
|
Deferred tax
liabilities
|
833,694
|
|
944,792
|
|
132,817
|
Lease
liabilities
|
794,544
|
|
764,049
|
|
107,408
|
Convertible promissory
note payable
|
10,669,498
|
|
12,618,789
|
|
1,773,921
|
Optionally convertible
promissory notes
|
7,405,103
|
|
8,162,603
|
|
1,147,481
|
Other
liabilities
|
2,315,948
|
|
2,254,533
|
|
316,937
|
Total
liabilities
|
265,874,283
|
|
275,572,069
|
|
38,739,308
|
Equity
|
|
|
|
|
|
Share
capital
|
75
|
|
75
|
|
11
|
Share
premium
|
33,365,786
|
|
25,857,702
|
|
3,635,018
|
Treasury
shares
|
(5,560,104)
|
|
(5,642,769)
|
|
(793,248)
|
Other
reserves
|
9,304,995
|
|
7,836,643
|
|
1,101,658
|
Retained
earnings
|
55,942,943
|
|
65,457,604
|
|
9,201,884
|
Total equity
attributable to owners of the Company
|
93,053,695
|
|
93,509,255
|
|
13,145,323
|
Non-controlling
interests
|
1,505,508
|
|
1,588,012
|
|
223,239
|
Total
equity
|
94,559,203
|
|
95,097,267
|
|
13,368,562
|
Total liabilities
and equity
|
360,433,486
|
|
370,669,336
|
|
52,107,870
|
|
|
|
|
|
|
LUFAX HOLDING
LTD
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(All amounts in
thousands, except share data, or otherwise noted)
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Net cash generated
from/(used in) operating
activities
|
1,713,184
|
|
2,368,661
|
|
332,981
|
|
5,617,033
|
|
(368,333)
|
|
(51,779)
|
Net cash generated
from/(used in) investing activities
|
2,563,026
|
|
(5,559,517)
|
|
(781,545)
|
|
(2,635,639)
|
|
7,384,143
|
|
1,038,046
|
Net cash generated
from/(used in) financing activities
|
(3,102,542)
|
|
4,459,025
|
|
626,840
|
|
(816,325)
|
|
(2,843,563)
|
|
(399,742)
|
Effects of exchange
rate changes on cash and
cash
equivalents
|
17,417
|
|
203,617
|
|
28,624
|
|
(44,253)
|
|
205,975
|
|
28,956
|
Net increase/(decrease)
in cash and cash
equivalents
|
1,191,085
|
|
1,471,786
|
|
206,900
|
|
2,120,816
|
|
4,378,222
|
|
615,481
|
Cash and cash
equivalents at the beginning of
the
period
|
24,715,382
|
|
29,402,746
|
|
4,133,373
|
|
23,785,651
|
|
26,496,310
|
|
3,724,792
|
Cash and cash
equivalents at the end of the
period
|
25,906,467
|
|
30,874,532
|
|
4,340,273
|
|
25,906,467
|
|
30,874,532
|
|
4,340,273
|
View original
content:https://www.prnewswire.com/news-releases/lufax-reports-third-quarter-2022-financial-results-301686199.html
SOURCE Lufax Holding Ltd