Leidi.com Lei Jianping April 14
Lufax Holdings Co., Ltd. (referred to as "Lufax", stock code: 06623) was listed on the Hong Kong Stock Exchange today with an issue price of HK$33.5.
Lufax applied for the listing of stocks on the Hong Kong Stock Exchange by way of introduction this time, which does not involve financing of new shares.
This is another asset under Ping An of China returning to Hong Kong for listing. Before this, OneConnect had returned to the Hong Kong Stock Exchange for listing. However, OneConnect’s value in the Hong Kong stock market was only 1.673 billion Hong Kong dollars, and there was basically no trading volume.
Lufax’s opening price today was HK$33.5, which was the same as the issue price; since then, the stock price has risen to a closing price of HK$34.75, with a market value of HK$39.827 billion.
When Lufax was listed on the US stock market, its closing market value exceeded US$30 billion that day, which means that since its listing, Lufax’s market value has shrunk by more than 80%.
Annual profit down 47.5%
According to reports, Lufax is a financial service institution. Lufax provides tailor-made financing products for small and micro business owners and other high-quality borrowers to solve their large unmet needs.
During this process, Lufax has established cooperative relations with more than 550 financial institutions in China. These financial institutions provide funds and credit enhancement services for the loans enabled by Lufax, and provide other products to enrich the ecosystem of small and micro business owners that Lufax is creating.
According to the prospectus, Lufax’s revenue in 2020, 2021, and 2022 will be 52.046 billion yuan, 61.835 billion yuan, and 58.116 billion yuan (about 8.357 billion U.S. dollars); net profits will be 12.276 billion yuan, 16.709 billion yuan, and 8.775 billion yuan, respectively. yuan (approximately US$1.262 billion).
Lufax's revenue in 2022 will decrease by 6% compared with the same period of last year; net profit will decrease by 47.5% compared with the same period of last year.
Specifically, Lufax’s revenue in the fourth quarter of 2022 was 12.318 billion yuan (approximately US$1.786 billion), a decrease of 22.2% from 15.831 billion yuan in the same period last year, and a decrease of 7% from 13.193 billion yuan in the previous quarter.
Among them, Lufax’s income based on technology platforms in the fourth quarter of 2022 was 874 million yuan, a decrease of 33.5% from 8.836 billion yuan in the same period of the previous year; the reason was that the decrease in new loan sales and lower yields led to a decline in retail credit service fees, and the transaction The decline in volume has led to a reduction in referral fees and other technology-based platform revenue.
Lufax’s interest income in the fourth quarter of 2022 was 4.369 billion, an increase of 3.2% from 4.234 billion in the same period last year, mainly due to the increase in consumer finance loans, partially offset by the decrease in net interest income from trust plans.
Lufax’s Guarantee income in the fourth quarter of 2022 was 1.671 billion, an increase of 2.2% from the 1.635 billion in the same period in 2021, mainly due to the increase in the company’s loans to bear credit risks.
Lufax's other income in the fourth quarter of 2022 was 131 million yuan, compared with 769 million yuan in the same period in 2021, mainly due to changes in the fee structure charged by the company to primary credit enhancement partners.
Lufax's investment income in the fourth quarter of 2022 was 275 million yuan, compared with 359 million yuan in the same period in 2021, mainly due to the decrease in investment assets.
Lufax's net loss in the fourth quarter of 2022 was 806 million yuan, compared with a net profit of 2.896 billion yuan in the same period last year.
As of December 31, 2022, Lufax held cash and cash equivalents of 29.538 billion yuan (approximately 4.247 billion U.S. dollars).
Evaporated more than 27 billion US dollars in two years
The executive directors of Lufax are Zhao Rongxi and Ji Kuisheng; the non-executive directors are Ji Guangheng, Fu Xin, and Huang Yuqiang; the independent non-executive directors are Yang Rusheng, Li Weidong, Zhang Xudong, and Li Xianglin.
In the past two years, the management of Lufax has been relatively turbulent. In February 2021, Li Renjie, chairman of Lufax, retired, and Ji Guangheng, the former co-chairman, became the chairman. At that time, Zhao Rongxi and Ji Kuisheng were appointed as co-CEOs of Lufax, responsible for the retail credit and wealth management sectors respectively.
In June 2022, Zheng Xigui, CFO of Lufax, retired and joined Lexin as CFO. In August 2022, Lufax announced that Ji Guangheng, the deputy general manager of Ping An Group, would no longer serve as the chairman of Lufax Holdings.
Lufax also appointed Chen Dongqi, the former general manager of Ping An Pratt & Whitney, as the general manager of Lufax Holdings. Pratt & Whitney Chief Financial Officer David Siu Kam Choy has been appointed CFO of Lufax. Jian Yang stepped down as Chief Risk Officer of Lufax, and Ms. Lin Yunzhen was appointed as Chief Risk Officer of the company.
Before the IPO in Hong Kong, Ping An Group held 41.4% of the shares, and Tun Kung Company Limited held 28.3% of the shares.
As of December 9, 2022, Tongjun Investment Company Limited and Lanbang Investment Company Limited held 47.2% and 52.8% of the issued and outstanding share capital of Tun Kung Company Limited, respectively.
Both Tongjun Investment Company Limited and Lanbang Investment Company Limited are British Virgin Islands companies. Two individuals, Dou Wenwei and Ms. Wang Wenjun each own 50% of the shares of Tongjun Investment Company Limited.
Two individuals, Yang Xuelian and Shi Jingkui each own 50% of the shares of Lanbang Investment Company Limited.
Lufax was listed on the New York Stock Exchange on October 30, 2020. At that time, it issued 175 million ADSs with an issue price of US$13.5 and a fundraising scale of US$2.363 billion. Based on the closing price on the first day, Lufax has a market capitalization of US$31.3 billion.
In the past two years, due to the suspension of the listing of Ant Group, major adjustments in the mutual fund industry, and the cold winter of Chinese concept stocks, the market value of Lufax has also fallen sharply. Today, the market value has shrunk by more than 80%.
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