Lufax Holding Ltd (6623.HK) Issues Resumption Update, Reveals Q4 2025 Performance, and Continues Trading Suspension

Lufax Holding Ltd (6623.HK) released a new announcement outlining four key areas: a supplemental investigation into certain loan arrangements, an internal control review, operational results for the fourth quarter of 2025, and continued suspension of share trading.

The supplemental investigation found that between June 2017 and January 2023, the company extended RMB3.84 billion in loans to a third party, part of which was used to compensate investors involved in underperforming financial products. The company concluded that some accounting treatments in these loan arrangements did not align with their economic substance, prompting further rectification measures. Certain personnel actions are being considered for those deemed responsible for the transactions and their improper accounting treatment.

In parallel, the company is undergoing an internal control review led by an independent consultant, focusing on policies and procedures from 2022 to 2025. This review covers entity-level and process-level controls, particularly those related to wealth management, related-party transactions, financial reporting, and treasury management. The consultant has provided recommendations, and the company is implementing remedial measures.

Operationally, total outstanding loans stood at RMB183.8 billion as of the end of 2025, a 15.2% decrease year-on-year. Meanwhile, consumer finance loans rose to RMB59.6 billion, reflecting a 19.0% increase over the same period. New loan volume reached RMB51.0 billion in the fourth quarter, down 26.5% year-on-year, whereas consumer finance-originated new loans rose 7.4% year-on-year. The company reported 29.1 million cumulative borrowers, up from 25.9 million a year prior. Delinquency and flow-rate metrics showed slight increases toward the end of the reporting period, and the consumer finance subsidiary’s non-performing loan ratio reached 1.2% in the final quarter of 2025.

Trading in Lufax Holding Ltd’s shares remains suspended since January 28, 2025. The company advises investors to exercise caution when dealing in its securities and will release additional updates as circumstances progress.