LUFAX (06623) has unveiled its financial results for the second quarter of fiscal 2026, posting total revenue of 6.227 billion yuan (RMB, same below). The company recorded a net loss of 82 million yuan, a substantial improvement of 82.6% year-over-year from the previous corresponding period.

As of June 30, 2026, the total loan balance stood at 167.3 billion yuan, reflecting a 13.5% decline compared to the 193.4 billion yuan recorded as of June 30, 2025. Within this total, the consumer finance segment demonstrated robust growth, with its loan balance reaching 65.4 billion yuan as of June 30, 2026, up 19.9% from the 54.5 billion yuan reported a year earlier.

During the second quarter of 2026, the company facilitated new loans totaling 51.1 billion yuan, an increase of 4.6% from the 48.9 billion yuan generated in the same period of 2025. Notably, consumer finance new loans surged to 36.9 billion yuan in the April-to-June period of 2026, representing a substantial 27.6% jump from the 28.9 billion yuan recorded in the corresponding quarter of the prior year. Meanwhile, the cumulative number of borrowers expanded to approximately 31.4 million as of June 30, 2026, up 13.1% from around 27.8 million borrowers at the end of June 2025.

Commenting on the results, Mr. Ji Xiang, Chief Executive Officer of LUFAX, stated: "Today's performance marks an important milestone as we return to a regular and predictable financial reporting cadence. Over the past year, we completed the re-audit and audit work of our financial statements for fiscal years 2022 through 2025, engaged Deloitte Management Consulting (Shanghai) to strengthen our internal controls, and restructured our board of directors so that independent non-executive directors now hold the majority of board seats. These measures are designed to enhance corporate governance and internal oversight, enabling us to resume periodic financial reporting to our shareholders and the broader investment community."

During the second quarter, the operating environment for small and micro business owners remained challenging, with financing demand continuing to be weak. In response, we are implementing a prudent operational strategy centered on our premium customer strategy and AI-powered refined management. The premium customer approach focuses on shifting our customer mix toward lower-risk borrowers through refined product design, targeted customer acquisition, and an upgraded risk management framework. Our AI-driven precision operations further deepen the application of artificial intelligence in customer segmentation and strengthening relationships with existing clients.

Benefiting from these measures, our consumer finance business has continued to grow, with consumer finance new loans increasing 27.6% year-over-year. This drove overall facilitated new loans to rise 4.6% year-over-year to 51.1 billion yuan. Our asset quality has also been progressively improving, with the C-M3 migration rate declining to 1.0% and the consumer finance non-performing loan ratio improving to 1.3%, both down compared to the first quarter.

On the financial front, despite the challenging operating conditions for small and micro business owners and persistently elevated credit costs, our net loss narrowed to 82 million yuan in the second quarter, an improvement of 86.2% compared to the same period last year. We are encouraged by our continuously improving operational efficiency. Under the leadership of our new management team, we will remain focused on prudent and high-quality growth, and we are committed to creating long-term value for our shareholders."