LUFAX (NYSE: LU, 06623.HK) has officially released its 2025 Annual Report. The financial results show that LUFAX's revenue for 2025 reached 27.1 billion yuan (approximately 3.879 billion USD), a 10.7% increase compared to 24.5 billion yuan in the previous year.
The revenue breakdown for 2025 includes 5.588 billion yuan (approximately 800 million USD) from technology platform services, 13.194 billion yuan (approximately 1.887 billion USD) in net interest income, 5.5 billion yuan (approximately 786 million USD) from guarantee services, 1.195 billion yuan (approximately 171 million USD) from other revenue, and 1.655 billion yuan (approximately 237 million USD) from investment income. Throughout 2025, LUFAX facilitated 214 billion yuan in new loans, with total loan balance reaching 183.8 billion yuan by year-end. The consumer finance business showed strong performance, with its subsidiary originating 119.7 billion yuan in new loans, a year-on-year increase of 25.3%. The subsidiary's loan balance at year-end was 59.6 billion yuan, representing a 19% growth. As of December 31, 2025, the cumulative number of borrowers served by LUFAX increased to approximately 29.1 million, showing steady growth compared to the previous year. Ping An Rongyi, under LUFAX, has served over 7.2 million small and micro enterprise owners cumulatively. Loans to small and micro enterprises accounted for 87% of the new loans originated throughout the year, with over 80% of the funds directed specifically to this segment.
The non-performing loan ratio stood at 1.2%. Regarding asset quality, at the end of 2025, the C-M3 migration rate for loans facilitated by the company was largely consistent with the rate at the end of 2024. The migration rates for unsecured and secured loans were 0.9% and 1.0%, respectively. The asset quality of the consumer finance business remained stable, with a non-performing loan ratio of 1.2%, unchanged from the end of 2024. The proportion of loan balance for which the company bears risk increased to 94.1%. The annual report also detailed several strategic transformation initiatives. The company stated that in 2025, it focused on two core areas: optimizing customer portfolio structure and enhancing risk control capabilities. This focus aimed to drive continuous improvement in fundamental operations and solidify the foundation for long-term, high-quality development. In customer management, LUFAX continued to expand its base of high-quality customers by reshaping its customer structure through product innovation, service upgrades, and channel expansion. It launched flexible and diverse customized products for premium customers to meet their differentiated financing needs, achieving a rebalancing of the customer structure. The company accelerated its direct sales reform, building a "three-high" direct sales team characterized by "high productivity, high quality, and high seniority" to provide customers with full lifecycle financing solutions, thereby enhancing customer loyalty and repeat borrowing rates. Concurrently, LUFAX expanded customer acquisition channels, including partnerships with insurance companies and banks, to create a diversified customer acquisition network and broaden the source of quality customers. In risk management, the company concentrated on its "AI in ALL" strategy in 2025, integrating AI capabilities into the entire risk management process and comprehensively upgrading its risk control infrastructure. During the year, it launched the "Zhidun" intelligent due diligence solution and the Aegis credit approval vertical large model, establishing a dual defense line covering "pre-event and in-process" stages. The "Zhidun" platform leverages large model technology, OCR recognition, and machine learning algorithms to enable intelligent analysis of due diligence materials, automatic logic verification, and real-time risk warnings, improving the efficiency of credit due diligence and effectively preventing fraud risk. The Aegis project integrates three intelligent agents—AI risk discovery, AI risk review, and AI risk decision-making—to deliver a fully intelligent, end-to-end risk approval solution, enhancing the interception of high-risk applications and review efficiency. Meanwhile, LUFAX continued to refine its customer risk profiling and risk grading management system, achieving differentiated risk-based pricing and precise resource allocation, which helped reduce risk costs.
Net Loss Narrowed Significantly Total expenses for LUFAX in 2025 were 27.7 billion yuan (approximately 3.962 billion USD), a 4.2% increase from 26.592 billion yuan in the prior year. Specifically, sales and operational expenses in 2025 were 4.036 billion yuan (approximately 577 million USD), down 25% from 5.4 billion yuan year-on-year. General and administrative expenses were 1.922 billion yuan (approximately 275 million USD), a 5% decrease from 2.024 billion yuan. Operation and service expenses amounted to 3.837 billion yuan (approximately 549 million USD), a 23.8% decline from 5.034 billion yuan. Technology and analytics expenses were 991 million yuan (approximately 142 million USD), down 15.9% from 1.178 billion yuan. Credit impairment losses were 16.558 billion yuan (approximately 2.368 billion USD), a 31.3% increase from 12.6 billion yuan.
LUFAX reported a net loss of 1.7 billion yuan (approximately 300 million USD) for 2025, representing a significant narrowing of 52.78% compared to the net loss of 3.6 billion yuan in the previous year. As of December 31, 2025, LUFAX's bank deposits stood at 22.086 billion yuan, compared to 29.9 billion yuan as of December 31, 2024. The company's net assets were 82 billion yuan as of the end of 2025, compared to 83.6 billion yuan a year earlier.
Appointment of Ms. Wang Xiaodi as Chief Compliance Officer On April 23, 2025, Rongshi Zhao resigned as Chairman of the Board, and Dicky Yip was appointed as Chairman. The roles of Chairman and Chief Executive Officer were separated and are held by different individuals. Subsequently, Xiang Ji was appointed as Co-Chief Executive Officer of the company, effective October 31, 2025. As of the date of this annual report, Dicky Yip serves as Chairman, and Xiang Ji serves as the company's Chief Executive Officer. The Chairman is responsible for providing strategic advice and guidance for the group's development, while the CEO is responsible for the group's daily operations. The governance structure at LUFAX was further enhanced recently. The company's Board of Directors resolved on April 27, 2026, to appoint Ms. Wang Xiaodi as Chief Compliance Officer. Public information indicates that Ms. Wang Xiaodi possesses extensive compliance management experience from large financial institutions and currently serves as General Manager of the Internal Control and Compliance Department and Board Secretary at Ping An Asset Management Co., Ltd. The establishment of the Chief Compliance Officer role is expected to help LUFAX further improve its compliance management system and build a corporate governance framework centered on compliance. LUFAX stated that the company will comprehensively advance three core reform initiatives: expanding high-quality customers at the front end, controlling risks at the middle stage, and improving efficiency at the back end. It will focus on managing premium customers, implementing precise risk control, and enhancing operational efficiency to continuously optimize the business structure and profitability, thereby solidifying the foundation for high-quality development. In customer management, the company will deepen its strategy for developing premium customers while also intensifying services for existing customers, aiming to create lightweight, small-amount revolving products that precisely meet customers' regular financing needs. Simultaneously, guided by diverse customer needs, it will build a specialized and differentiated product matrix to continuously strengthen customer relationships. LUFAX also stated that regarding technology empowerment and risk control upgrades, the company will continue to strengthen the deep application and implementation of artificial intelligence technology across the entire business cycle. It will fully empower frontline staff's business development efficiency and service capabilities by leveraging AI digital avatars (marketing assistants). The company will concurrently advance the iterative upgrade of its comprehensive risk control management system, encompassing AI-based approval, AI risk control, and AI post-lending management, to provide a solid guarantee for overall risk improvement and efficiency enhancement. Furthermore, by fully leveraging AI to enhance operational quality and efficiency, the company will continuously refine management effectiveness, elevate overall operational performance, and achieve high-quality, sustainable development.
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