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 and nine months ended September 30, 2020.
Third Quarter 2020 Financial Highlights
- Total income increased by 10.5% to RMB13,076 million (US$1,926
million) in third quarter of 2020 from RMB11,838 million in the
same period of 2019.
- Net profit decreased by 36.8% to RMB2,157 million (US$318
million) in third quarter of 2020 from RMB3,414 million in the same
period of 2019, mainly due to the impact of a non-recurring
expense.
- Non-IFRS adjusted net profit, excluding a non-recurring expense
of RMB1,326 million (US$195 million) recognized in September 2020
in relation to the Company’s C-round convertible notes
restructuring prior to its initial public offering, increased by
2.0% to RMB3,483 million (US$513 million) in the third quarter of
2020 from RMB3,414 million in the same period of 2019.
(In millions except percentages,
unaudited)
Three Months Ended September
30,
2019
2020
YoY
RMB
RMB
USD
Total income
11,838
13,076
1,926
10.5%
Total expense
(7,147)
(9,455)
(1,393)
32.3%
Net profit
3,414
2,157
318
-36.8%
Non-IFRS adjusted net profit1
3,414
3,483
513
2.0%
Net Margin
28.8%
16.5%
16.5%
-42.7%
Non-IFRS adjusted net margin1
28.8%
26.6%
26.6%
-7.6%
Third Quarter 2020 Operational Highlights
Retail credit facilitation
business:
- Outstanding balance of loans facilitated increased by 21.4% to
RMB535.8 billion (US$78.9 billion) as of September 30, 2020 from
RMB441.2 billion as of September 30, 2019.
- Cumulative number of borrowers increased by 16.7% to
approximately 14 million as of September 30, 2020 from
approximately 12 million as of September 30, 2019.
- New loans facilitated increased by 7.7% to RMB147.8 billion
(US$21.8 billion) in the third quarter of 2020 from RMB137.2
billion in the same period of 2019.
- During the third quarter, 74.1% of new loans facilitated were
disbursed to the Company’s core segment of small business owners,
up from 61.3% in the same period of 2019.
- As planned and in line with the Company’s interpretation of the
court guidelines on Loan Prime Rate pricing announced in August,
Lufax adjusted its Annual Percentage Rates (or APRs) to ensure that
the all-in costs for new borrowers remained below 24%, from
September 4th of this year. As a result, the Company’s retail
credit facilitation revenue take rate declined from 10.4% a year
ago to 9.4% for the third quarter of 2020.
- Flow rates2 for the general unsecured loans the Company had
facilitated that became delinquent for 1 to 89 day were 0.5% in
September 2020, as compared to 1.0% during the peak of COVID-19
pandemic in China in February 2020.
- Flow rates for the secured loans the Company had facilitated
that became delinquent for 1 to 89 days were 0.1% in September
2020, as compared to 0.7% during the peak of COVID-19 pandemic in
China in February 2020.
- Days past due (DPD) 30+ delinquency rate3 for general unsecured
loans improved to 2.5% as of September 30, 2020 from 3.3% as of
June 30, 2020. DPD 30+ delinquency rate for secured loans improved
to 0.9% as of September 30, 2020 from 1.4% as of June 30,
2020.
- DPD 90+ delinquency rate for general unsecured loans improved
to 1.5% as of September 30, 2020 from 2.1% as of June 30, 2020. DPD
90+ delinquency rate for secured loans improved to 0.5% as of
September 30, 2020 from 0.9% as of June 30, 2020.
Wealth management business:
- Total number of registered users grew to 45 million as of
September 30, 2020 from 43 million as of September 30, 2019.
- Total number of active investors grew to 13 million as of
September 30, 2020 from 12 million as of September 30, 2019.
- Total client assets grew to RMB378.3 billion (US$55.7 billion)
as of September 30, 2020 from RMB350.9 billion as of September 30,
2019.
- Client assets in the Company’s current products (excluding
legacy products4) increased by 61.6% to RMB346.0 billion (US$51.0
billion) as of September 30, 2020 from RMB214.1 billion as of
September 30, 2019.
- As of September 30, 2020, legacy products accounted for 8.5% of
total client assets, down from 39.0% a year ago.
- During the third quarter, the Company’s wealth management take
rate5 for current products increased by 6.4bps year over year to
36.6bps. However, when including legacy products, the total take
rate of the Company’s wealth management platform decreased to
56.6bps from 88.0bps in the same period of 2019.
- 12-month investor retention rate as of September 30, 2020
remained high at 95.2%, as compared with 91.6% as of September 30,
2019.
- Contribution to total client assets from customers with
investments of more than RMB 300,000 on the Company’s platform
increased to 77.5% as of September 30, 2020 from 73.1% as of
September 30, 2019.
Mr. Gregory Gibb, Chief Executive Officer of Lufax, commented,
“We delivered solid results in the third quarter of 2020, with our
balance of loans facilitated growing by 21.4% year over year to RMB
535.8 billion. Also, the leading indicators for risk performance on
our lending platform (i.e. flow rates) returned to their
pre-COVID-19 levels. As planned, we also continued to make progress
in establishing a more sustainable risk-sharing business model with
our funding partners during the quarter. On the wealth management
front, our client assets grew by 7.8% year over year to RMB 378.3
billion, among which the current product portion grew by 61.6% year
over year to RMB 346.0 billion. From a broader perspective, we
continue to observe market concerns across the regulatory landscape
for Fintech companies in China as well as the tightening of
regulatory controls. As such, we remain vigilant and are ready to
comply with any new regulatory requirements.”
Mr. James Zheng, Chief Financial Officer of Lufax, commented,
“We delivered solid financial results in the third quarter of 2020.
During the period, our total income was 13.1 billion, up by 10.5%
year over year, while our net profit was 2.2 billion, down by 36.8%
year over year. Excluding non-recurring charges of 1.3 billion
related to our C-round convertible note restructuring, our adjusted
net profit was 3.5 billion in the third quarter, an increase of
2.0% year over year. We achieved these solid financial results
during a period in which we were dealing with the residual impacts
of COVID-19, transitioning our business to a more balanced
risk-sharing model, and adjusting our Annual Percentage Rates (or
APRs) to keep the all-in costs for new borrowers below 24%. Our
strong performance in spite of these changes is a testament to both
the resilience of our business model and stability of our
earnings.”
Third Quarter 2020 Financial Results
TOTAL INCOME
Total income increased by 10.5% to RMB13,076 million (US$1,926
million) in the third quarter of 2020 from RMB11,838 million in the
same period of 2019. The Company’s revenue mix changed with the
evolution of its business model as it started to gradually bear
more credit risks and increased funding from those consolidated
trust plans that offered lower funding costs.
- Technology platform-based income decreased by 6.9% to
RMB9,910 million (US$1,460 million) in the third quarter of 2020
from RMB10,644 million in the same period of 2019, due to the
decreases in retail credit facilitation service fees and wealth
management transaction and service fees.
- Retail credit facilitation service fees decreased by 5.9% to
RMB9,420 million (US$1,387 million) in the third quarter of 2020
from RMB10,011 million in the same period of 2019, mainly due to:
(i) continued evolution of the Company’s revenue model; (ii) early
repayment by borrowers; and (iii) adjustments in product
prices.
- Wealth management transaction and service fees decreased by
22.7% to RMB490 million (US$72 million) in the third quarter of
2020 from RMB633 million in the same period of 2019, mostly because
the Company ceased the offering of its legacy products. Meanwhile,
wealth management transaction and service fees from current
products increased by 122.3% to RMB249 million (US$37 million) in
the third quarter of 2020 from RMB112 million in the same period of
2019.
- Net interest income increased by 214.6% to RMB2,419
million (US$356 million) in the third quarter of 2020 from RMB769
million in the same period of 2019, mainly as a result of the
Company’s increased usage of trust funding channels.
- Guarantee income increased by 88.2% to RMB175 million
(US$26 million) in the third quarter of 2020 from RMB93 million in
the same period of 2019, primarily due to the increase in the loans
that the Company bears credit risk.
- Investment income decreased by 4.5% to RMB107 million
(US$16 million) in the third quarter of 2020 from RMB112 million in
the same period of 2019.
TOTAL EXPENSES
Total expenses increased by 32.3% to RMB9,455 million (US$1,393
million) in the third quarter of 2020 from RMB7,147 million in the
same period of 2019. Expenses excluding impairment losses and
financing costs increased by 6.6% to RMB6,851 million (US$1,009
million) in the third quarter of 2020 from RMB6,429 million in the
same period of 2019.
- Sales and marketing expenses increased by 14.3% to
RMB4,309 million (US$635 million) in the third quarter of 2020 from
RMB3,770 million in the same period of 2019.
- Borrower acquisition expenses increased by 28.9% to RMB2,790
million (US$411 million) in the third quarter of 2020 from RMB2,164
million in the same period of 2019, mostly due to: (i) an increase
in the outstanding balance of off–balance sheet loans facilitated;
and (ii) a material increase in expenses related to loans of prior
vintage facilitated, whose costs are amortized over the lifetime of
loans.
- Investor acquisition and retention expenses decreased by 24.1%
to RMB198 million (US$29 million) in the third quarter of 2020 from
RMB261 million in the same period of 2019, mostly due to the
improvement in the Company’s investor acquisition efficiency.
- General sales and marketing expenses decreased by 1.7% to
RMB1,321 million (US$195 million) in the third quarter of 2020 from
RMB1,344 million in the same period of 2019, primarily due to: (i)
the governmental relief of social security costs as a result of
COVID-19; and (ii) the suspension of business operations across
China during COVID-19 pandemic.
- General and administrative expenses decreased by 3.7% to
RMB642 million (US$95 million) in the third quarter of 2020 from
RMB667 million in the same period of 2019 as a result of the
Company’s expense control measures.
- Operation and servicing expenses increased by 5.4% to
RMB1,562 million (US$230 million) in the third quarter of 2020 from
RMB1,482 million in the same period of 2019, primarily due to: (i)
growth in the outstanding balance of loans facilitated; and (ii)
increased payment processing expenses as a result of the expanded
loan repayment volume. The increase was partially offset by
efficiency improvements in the loan approval and collection process
as a result of the Company’s utilization of artificial
intelligence.
- Technology and analytics expenses decreased by 9.1% to
RMB482 million (US$71 million) in the third quarter of 2020 from
RMB530 million in the same period of 2019, mostly due to improved
efficiency.
- Credit impairment losses increased by 125.6% to
RMB952 million (US$140 million) in the third quarter of 2020 from
RMB422 million in the same period of 2019, mainly driven by: (i)
increased credit risk exposure as a result of the loans that the
Company bears credit risk; and (ii) increased credit impairment
losses related to accounts and other receivables and contract
assets due to the increased new off-balance sheet loans as well as
the negative impact of COVID-19.
- Finance costs increased by 456.2% to RMB1,652 million
(US$243 million) in the third quarter of 2020 from RMB297 million
in the same period of 2019, mostly due to a non-recurring expense
of RMB1,326 million (US$195 million) recognized in September 2020
in relation to the Company’s C-round convertible notes
restructuring.
NET PROFIT
Net profit was RMB2,157 million (US$318 million) in the third
quarter of 2020, as compared to RMB3,414 million in the same period
of 2019. Non-IFRS adjusted net profit, excluding the non-recurring
expense of RMB1,326 million (US$195 million) recognized in relation
to the Company’s C-round convertible notes restructuring, was
RMB3,483 million (US$513 million) in the third quarter of 2020, as
compared to RMB3,414 million in the same period of 2019.
EARNINGS PER ADS
Basic and diluted earnings per American Depositary Share (“ADS”)
were both RMB1.01 (US$0.15) in the third quarter of 2020. In
comparison, basic and diluted earnings per ADS were both RMB1.58 in
the same period of 2019.
Adjusted basic and diluted earnings per ADS were both RMB1.62
(US$0.24) in the third quarter of 2020. In comparison, adjusted
basic and diluted earnings per ADS were both RMB1.58 in the same
period of 2019. Two ADSs represent one of the Company’s ordinary
shares.
BALANCE SHEET
The Company had RMB14,377 million (US$2,118 million) in cash at
bank as of September 30, 2020, as compared to RMB7,352 million as
of December 31, 2019.
Business Outlook
For the full year of 2020, the Company expects new loan sales to
be in the range of RMB558 billion to RMB568 billion, year-end
client assets to be in the range of RMB395 billion to RMB420
billion, total income to be in the range of RMB51.0 billion to
RMB51.5 billion, and non-IFRS adjusted net profit, which excludes
the non-recurring C-round convertible notes restructuring expense,
to be in the range of RMB13.2 billion to RMB13.4 billion. These
forecasts reflect the Company’s current and preliminary views on
the market and operational conditions, which are subject to
changes.
Conference Call Information
The Company will hold an earnings conference call at 8:00 P.M.
U.S. Eastern Time on Tuesday, December 1, 2020 (9:00 A.M. Beijing
Time on Wednesday, December 2, 2020) 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 set of participant dial-in numbers, the Direct Event
passcode, and a unique access PIN, which can be used to join the
conference call.
Registration Link: http://www.directeventreg.com/registration/event/7557988
A replay of the conference call will be accessible through
December 8, 2020 (dial-in numbers: +1 (800) 585-8367 or +1 (416)
621-4642; conference ID: 7557988). 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 RMB6.7896 to US$1.00, the rate
in effect as of September 30, 2020 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'
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.
Use of Non-IFRS Financial Measures
Lufax uses non-IFRS measures including adjusted net profit,
adjusted net margin and adjusted basic and diluted earnings per
ADS, in evaluating the Company’s operating results and for
financial and operational decision-making purposes. Lufax believes
that adjusted net profit help identify underlying trends in the
Company’s business by excluding the impact of non-recurring expense
related to C-round convertible notes restructuring. The Non-IFRS
adjusted net margin is calculated by dividing net profit excluding
non-recurring expense related to C-round convertible notes
restructuring by total income. Non-IFRS basic and diluted earnings
per ADS represents basic and diluted earnings per ADS calculated by
dividing non-IFRS net income attributable to Lufax, which is
adjusted for non-recurring expense related to C-round convertible
notes restructuring, by the weighted average number of ordinary
shares expressed in ADS.
Lufax believes that adjusted net profit, adjusted net margin and
adjusted basic and diluted EPS per ADS provide useful information
about the Company’s operating results, enhance the overall
understanding of its past performance and future prospects and
allow for greater visibility with respect to key metrics used by
Lufax’s management in its financial and operational
decision-making.
Non-IFRS adjusted net profit, adjusted net margin and basic and
diluted EPS per ADS are not defined under IFRS and are not
presented in accordance with IFRS. This Non-IFRS financial measures
have limitations as analytical tool, and when assessing the
Company’s operating performance, cash flows or its liquidity,
investors should not consider them in isolation, or as a substitute
for net profit, net margin or other consolidated statements of
comprehensive income data prepared in accordance with IFRS. The
Company encourages investors and others to review its financial
information in its entirety and not rely on a single financial
measure.
For more information on this Non-IFRS financial measures, please
see the table captioned “UNAUDITED RECONCILIATION OF IFRS AND
NON-IFRS RESULTS” set forth at the end of this press
release.
LUFAX HOLDING LTD
UNAUDITED INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All amounts in thousands,
except share data, or otherwise noted)
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2020
2019
2020
RMB
RMB
USD
RMB
RMB
USD
Technology platform-based income
10,644,280
9,909,716
1,459,543
31,151,238
31,362,840
4,619,247
Retail credit facilitation service
fees
10,011,057
9,419,963
1,387,411
29,026,050
30,173,838
4,444,126
Wealth management transaction and service
fees
633,223
489,753
72,133
2,125,188
1,189,002
175,121
Net interest income
768,607
2,419,021
356,283
2,940,338
5,417,227
797,871
Guarantee income
93,191
175,170
25,800
407,161
345,636
50,907
Other income
206,831
409,171
60,264
536,069
1,064,779
156,825
Investment income
111,856
107,124
15,778
211,387
553,895
81,580
Share of net profits of investments
accounted for using the equity method
13,580
56,011
8,250
38,584
15,364
2,263
Total income
11,838,345
13,076,213
1,925,919
35,284,777
38,759,741
5,708,693
Sales and marketing expenses
(3,769,599)
(4,308,549)
(634,581)
(10,877,846)
(12,928,843)
(1,904,213)
General and administrative expenses
(666,983)
(641,771)
(94,523)
(2,186,314)
(1,989,484)
(293,019)
Operation and servicing expenses
(1,482,164)
(1,562,413)
(230,119)
(3,979,157)
(4,381,019)
(645,254)
Technology and analytics expenses
(529,997)
(482,211)
(71,022)
(1,394,472)
(1,330,888)
(196,019)
Credit impairment losses
(421,891)
(951,695)
(140,170)
(892,046)
(2,050,499)
(302,006)
Asset impairment losses
(62)
-
-
-
-
-
Finance costs
(296,787)
(1,652,346)
(243,364)
(1,126,839)
(2,539,693)
(374,056)
Other gains/(losses) - net
20,242
144,163
21,233
210,169
189,842
27,960
Total expenses
(7,147,241)
(9,454,822)
(1,392,546)
(20,246,505)
(25,030,584)
(3,686,607)
Profit before income tax
expenses
4,691,104
3,621,391
533,373
15,038,272
13,729,157
2,022,086
Income tax expenses
(1,276,882)
(1,464,193)
(215,652)
(4,145,938)
(4,300,400)
(633,380)
Net profit for the period
3,414,222
2,157,198
317,721
10,892,334
9,428,757
1,388,706
Net profit/(loss) attributable
to:
Owners of the Group
3,420,838
2,184,179
321,695
10,904,677
9,467,681
1,394,439
Non-controlling interests
(6,616)
(26,981)
(3,974)
(12,343)
(38,924)
(5,733)
Net profit for the period
3,414,222
2,157,198
317,721
10,892,334
9,428,757
1,388,706
Other comprehensive income/(loss), net
of tax:
Exchange differences on translation of
foreign operations
(360,392)
(790,487)
(116,426)
(435,467)
(944,645)
(139,131)
Total comprehensive income for the
period
3,053,830
1,366,711
201,295
10,456,867
8,484,112
1,249,575
Total comprehensive income/(loss)
attributable to:
Owners of the Company
3,060,446
1,394,658
205,411
10,469,210
8,523,036
1,255,308
Non-controlling interests
(6,616)
(27,947)
(4,116)
(12,343)
(38,924)
(5,733)
Total comprehensive income for the
period
3,053,830
1,366,711
201,295
10,456,867
8,484,112
1,249,575
Earnings per share
-Basic and diluted earnings per share
3.15
2.01
0.30
10.03
8.71
1.28
-Basic and diluted earnings per ADS
1.58
1.01
0.15
5.02
4.36
0.64
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,
2019
2020
RMB
RMB
USD
Assets
Cash at bank
7,352,394
14,376,509
2,117,431
Restricted cash
24,602,779
19,120,967
2,816,214
Financial assets at fair value through
profit or loss
18,583,056
26,615,157
3,919,989
Financial assets at amortized cost
8,623,012
6,997,231
1,030,581
Financial Assets purchased under reverse
repurchase agreements
-
1,705,057
251,128
Accounts and other receivables and
contract assets
26,296,438
24,663,814
3,632,587
Loans to customers
47,498,512
99,706,472
14,685,176
Deferred tax assets
3,000,156
2,903,685
427,667
Property and equipment
517,237
417,691
61,519
Investments accounted for using the equity
method
434,770
490,457
72,237
Intangible assets
1,896,575
1,882,149
277,211
Right-of-use assets
914,960
1,055,260
155,423
Goodwill
9,046,830
9,046,830
1,332,454
Other assets
766,795
723,014
106,487
Total assets
149,533,514
209,704,293
30,886,104
Liabilities
Payable to platform users
15,344,417
8,845,775
1,302,842
Borrowings
2,989,862
10,018,803
1,475,610
Current income tax liabilities
1,264,027
1,707,328
251,462
Accounts and other payables and contract
liabilities
4,826,010
6,228,174
917,311
Payable to investors of consolidated
structured entities
47,243,050
92,375,173
13,605,393
Financial guarantee liabilities
242,749
553,672
81,547
Deferred tax liabilities
5,311,972
5,682,917
837,003
Lease liabilities
939,089
1,073,343
158,086
Convertible promissory note payable
10,014,377
10,334,729
1,522,141
Convertible redeemable preferred
shares
10,258,898
336,462
49,555
Optionally convertible promissory
notes
-
7,762,475
1,143,289
Automatically convertible promissory
notes
-
1,393,954
205,307
Other liabilities
2,953,646
2,418,619
356,224
Total liabilities
101,388,097
148,731,424
21,905,770
Equity
Share capital
69
69
10
Share premium
14,113,311
14,113,311
2,078,666
Treasury shares
(2)
(2)
(0)
Other reserves
4,582,291
6,416,102
944,990
Retained earnings
29,345,949
38,813,630
5,716,630
Total equity attributable to owners of
the Company
48,041,618
59,343,110
8,740,296
Non-controlling interests
103,799
1,629,759
240,038
Total equity
48,145,417
60,972,869
8,980,334
Total liabilities and equity
149,533,514
209,704,293
30,886,104
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,
2019
2020
2019
2020
RMB
RMB
USD
RMB
RMB
USD
Net cash generated from operating
activities
1,339,540
5,022,897
739,793
3,288,986
9,499,366
1,399,105
Net used in investing activities
(5,853,996)
(9,458,344)
(1,393,064)
(4,147,639)
(9,827,415)
(1,447,422)
Net cash generated from/(used in)
financing
activities
1,095,522
3,112,378
458,404
(3,100,813)
6,856,221
1,009,812
Effects of exchange rate changes on cash
and cash
equivalents
136,797
196,795
28,985
138,813
187,626
27,635
Net increase/(decrease) in cash and cash
equivalents
(3,282,137)
(1,126,274)
(165,882)
(3,820,653)
6,715,798
989,130
Cash and cash equivalents at the beginning
of the
period
18,037,574
15,154,133
2,231,962
18,576,090
7,312,061
1,076,950
Cash and cash equivalents at the end of
the period
14,755,437
14,027,859
2,066,080
14,755,437
14,027,859
2,066,080
LUFAX HOLDING LTD
UNAUDITED Reconciliation of
IFRS and Non-IFRS Results
(All amounts in thousands,
except share data, or otherwise noted)
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2020
2019
2020
RMB
RMB
USD
RMB
RMB
USD
Net profit
3,414,222
2,157,198
317,721
10,892,334
9,428,757
1,388,706
Add: Non-recurring expense related to
C-
round convertible notes restructuring
-
1,326,007
195,300
-
1,326,007
195,300
Non-IFRS adjusted net profit
3,414,222
3,483,205
513,021
10,892,334
10,754,764
1,584,006
Total income
11,838,345
13,076,213
1,925,919
35,284,777
38,759,741
5,708,693
Net margin
28.8%
16.5%
16.5%
30.9%
24.3%
24.3%
Non-IFRS adjusted net margin
28.8%
26.6%
26.6%
30.9%
27.7%
27.7%
Basic and diluted earnings per
ADS
1.58
1.01
0.15
5.02
4.36
0.64
Add: Non-recurring expense related to
C-
round convertible notes restructuring
-
0.61
0.09
-
0.61
0.09
Non-IFRS adjusted basic and
diluted
earnings per ADS
1.58
1.62
0.24
5.02
4.97
0.73
1 Please refer to “UNAUDITED RECONCILIATION OF IFRS AND NON-IFRS
RESULTS” for reconciliation between IFRS and non-IFRS metrics. 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. 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. 4 Legacy products refer to a
variety of products and related services that the Company has
historically offered but no longer offers, primarily due to shifts
in strategy and regulatory requirements. Legacy products are
primarily comprised of certain types of structured alternative
products originated from financial institutions and peer-to-peer
platforms. 5 The take rate is calculated as a percentage of the
fees collected from third-party asset providers and platform
investors by the Company and the affiliated company, which the
Company intends to acquire a majority interest in, over the
corresponding average client assets generated through the Company’s
platform.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201201005795/en/
Investor Relations Lufax Holding Ltd Email:
Investor_Relations@lu.com ICR Inc. Jack Wang Tel: +1 (646) 308-0546
Email: lufax.ir@icrinc.com
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