Lufax Holding Ltd, a prominent financial services provider for small business owners in China, reported a net loss of RMB830 million (US$115 million) for the first quarter of 2024, a significant downturn from the net profit of RMB732 million in the same quarter of the previous year. The company's total income also saw a substantial decrease of 31% year-over-year, amounting to RMB6,964 million (US$964 million). This decline was attributed to a reduction in total income across various streams, including technology platform-based income, guarantee income, and net interest income. Despite the decrease in income, Lufax managed to reduce total expenses by 27% year-over-year, primarily due to a 50% reduction in sales and marketing expenses. The company also reported operational highlights, such as...Show More

Lufax Holding Ltd, a prominent financial services provider for small business owners in China, reported a net loss of RMB830 million (US$115 million) for the first quarter of 2024, a significant downturn from the net profit of RMB732 million in the same quarter of the previous year. The company's total income also saw a substantial decrease of 31% year-over-year, amounting to RMB6,964 million (US$964 million). This decline was attributed to a reduction in total income across various streams, including technology platform-based income, guarantee income, and net interest income. Despite the decrease in income, Lufax managed to reduce total expenses by 27% year-over-year, primarily due to a 50% reduction in sales and marketing expenses. The company also reported operational highlights, such as a 45.4% decrease in the outstanding balance of loans enabled and a 12.4% increase in the cumulative number of borrowers. Lufax's management emphasized a strategic shift towards consumer finance products and a cautious approach to operations. Additionally, the company announced a change in its management team, with Mr. David Siu Kam Choy resigning as Chief Financial Officer and Mr. Peiqing Zhu taking over the role effective April 30, 2024. The financial results and management changes were discussed in an earnings conference call held on April 22, 2024.