LUFAX (6623) issued four announcements on February 15, including its Full Year Results for the Year Ended December 31, 2024.
The announcements reveal that as of the end of December 2024, the total loan balance facilitated by the company reached RMB 216.9 billion, with new loans issued in 2024 amounting to RMB 21.31 billion. The company has cumulatively served 25.9 million customers, with 5 million active customers. Asset quality showed continuous improvement. By the end of December 2024, delinquency rates had improved compared to 2023. The 30-day delinquency rate for all loans decreased from 6.9% to 4.8%, while the 90-day delinquency rate dropped from 4.1% to 2.9%. Credit impairment losses also saw a corresponding reduction. As of December 31, 2024, credit impairment losses were RMB 12.613 billion, a decrease of 0.7% from 2023. This was primarily due to reduced loan claim payouts and improved asset quality, partially offset by an increase in loan loss provisions resulting from the initiation of the 100% model, growth in the consumer finance business, and optimization of model parameters.
The release of the 2024 annual results and the restatement of past financial data signify the conclusion of several months of independent investigation and audit work for this fintech giant, resolving market uncertainties.
Notably, the timing of this annual report release is significant. According to previous approval from the NYSE, the deadline for submitting the Form 20-F could have been extended until April 30, 2026. The current report was issued two and a half months ahead of this approved deadline.
Market analysts suggest that the ability to submit the report ahead of expectations, especially amid complex financial restatements, reflects a significant improvement in the company's efficiency regarding financial auditing and internal control remediation. It also signals to the capital market the determination of the new management team to restore normal trading order and protect shareholder interests.
Despite being in a period of internal control rectification, the company's core business fundamentals demonstrated resilience. Previously disclosed operational updates for the fourth quarter of 2025 indicate that the consumer finance business has become a new growth engine for LUFAX.
By the end of 2025, the consumer finance loan balance reached RMB 59.6 billion, representing a counter-trend growth of 19.0% year-on-year. New loans issued in Q4 alone totaled RMB 28.7 billion, an increase of 7.4% compared to the same period last year. Furthermore, the proportion of loan balance for which the company bears risk increased to 91.4%, indicating a strengthening of its initiative in risk pricing and asset quality management.
In other news, the company announced new board appointments. Zhao Rongshi will not renew his contract as CEO and Executive Director upon its expiry due to personal family reasons. Xie Yonglin and Fu Xin have resigned as Non-Executive Directors due to work changes. All three departures were reported as having no disagreements with the Board. Cai Fangfang, Deputy General Manager and Chief Compliance Officer of Ping An Group, and Li Peifeng, a senior finance executive at Ping An Group, have been appointed as Non-Executive Directors. These precise appointments and reinforcements of core senior management aim to further solidify LUFAX's governance foundation through professional expertise at the group level. Ji Xiang will assume the role of Executive Director and CEO effective April 1st. Mr. Ji has served as Co-CEO since October 2025 and brings nearly 20 years of experience in retail financial credit, risk management, and investment management, including a previous role as a Global Director Partner at McKinsey & Company, combining international perspective with practical management experience.
Regarding the progress of trading resumption, LUFAX is actively advancing related work and will make further announcements on the resumption progress in accordance with the requirements of the listing rules in a timely manner. The company also released its 2024 Environmental, Social, and Governance report concurrently.
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