LUFAX Holding Ltd released its 2025 interim results, showing total income of RMB 14.08 billion for the six months to 30 June 2025, up 17.0% year on year, driven mainly by a stronger guarantee take-rate and higher net interest income.

Net loss attributable to shareholders narrowed to RMB 0.77 billion, with consolidated net loss at RMB 0.52 billion versus RMB 2.30 billion a year earlier. The improvement was achieved despite a 44.8% surge in credit impairment losses to RMB 7.86 billion as the company assumed a greater share of loan-book risk (risk-bearing ratio up to 83.5%).

Core operating trends • Outstanding loan balance declined 17.8% to RMB 193.40 billion, while consumer-finance loans grew 29.8% to RMB 54.50 billion. • New loan origination reached RMB 106.10 billion, a 13.7% increase. • Asset-quality indicators improved: DPD 30+ fell to 4.6% (-0.8 ppt) and DPD 90+ to 2.7% (-0.7 ppt); C-M3 flow rate held at 0.9%.

Revenue breakdown • Net interest income rose 5.5% to RMB 6.40 billion, supported by consumer-finance and micro-lending activities. • Guarantee income jumped 58.6% to RMB 2.82 billion amid higher off-balance exposures. • Technology platform income dropped 36.5% to RMB 2.89 billion, reflecting a smaller loan balance and the exit from the Lujintong business. • Investment income swung to a RMB 1.27 billion gain, partly due to valuation changes and a loss-sharing agreement with Lufunds.

Cost profile Total expenses edged up 5.2% to RMB 13.59 billion. Sales, marketing, operation and technology costs all declined on cost-control measures, but the benefit was offset by higher provisions and a doubling of finance costs (RMB 83 million) due to lower deposit interest income.

Balance-sheet highlights • Cash at bank stood at RMB 27.89 billion; net assets were RMB 83.11 billion. • Borrowings totalled RMB 53.07 billion, 95% at fixed rates between 1.95% and 4.20%. • Gearing ratio (debt to equity) was 71.5%. • The consumer-finance unit reported a capital adequacy ratio of 14.6%; the guarantee subsidiary’s leverage was 3.6 times.

Liquidity Net operating cash inflow reached RMB 5.41 billion, reversing a RMB 1.12 billion outflow a year earlier, aided by fee collections and a smaller loan book. Net investing cash outflow was RMB 2.81 billion, mainly from purchases of investment assets; financing activities consumed RMB 1.16 billion due to loan repayments.

Strategic focus for H2 2025 Management will target high-quality existing borrowers, promote “rollover financing” to extend loan terms, raise credit limits for top customers and lower cooperative loan rates, aiming to trim funding costs and enhance profitability while maintaining prudent risk controls.

Governance and regulatory matters Independent investigations into historical related-party transactions continue, and a U.S. securities class action was filed in March 2026 alleging disclosure and control deficiencies; the company stated that the case is at a preliminary stage with no estimable impact. Board composition was refreshed, including a new chairman and several independent directors.

Dividend No interim dividend was declared for the first half of 2025.