LUFAX (06623) has released its interim results for the six months ended June 30, 2026, reporting total revenue of RMB 12.489 billion and a net loss of RMB 694 million for the period. As of June 30, 2026, the company's loan balance stood at RMB 167.3 billion, a decrease of 13.5% compared to June 30, 2025, while its consumer finance loan balance reached RMB 65.4 billion, reflecting an increase of 19.9% year-over-year.

The total value of new loans facilitated by the company declined from RMB 106.1 billion in the first half of 2025 to RMB 99.9 billion in the first half of 2026. However, new consumer finance loans rose from RMB 59.3 billion to RMB 66.2 billion over the same comparative period. During the first half of 2026, the company's total facilitated new loans exhibited a recovery trend, with consumer finance loan volume maintaining rapid growth and asset quality improving on a quarterly basis.

The C-M3 migration rate increased from 1.1% as of December 31, 2025 to 1.2% as of March 31, 2026, before declining to 1.0% as of June 30, 2026. The DPD 30+ delinquency rate rose from 5.6% as of December 31, 2025 to 6.1% as of March 31, 2026, then fell to 5.8% as of June 30, 2026. Meanwhile, the DPD 90+ delinquency rate remained stable at 3.4% as of both December 31, 2025 and March 31, 2026, before increasing to 3.7% as of June 30, 2026.

Where to begin with strategic priorities? The company continues to implement prudent business strategies, recognizing that a cautious approach and sustained operational refinement are essential for long-term sustainable development. In the second half of 2026, LUFAX will advance its strategic transformation with a focus on the following measures: (1) establishing a dedicated consumer finance team, implementing a full-cycle relationship manager system, and launching products with enhanced competitive differentiation; (2) improving the quality and efficiency of its direct sales team while developing an AI-powered "digital avatar" tool to empower sales across all scenarios; (3) prioritizing the expansion of two key customer segments—individual business owners and salaried employees—through a diversified product system and segment-specific refined operations; (4) strengthening existing customer management by introducing a "small-amount wallet" product to boost customer loyalty and drive repeat borrowing for medium-to-large loans; and (5) enhancing regional differentiation capabilities to strengthen competitive positioning across different markets.