Lufax Reports Fourth Quarter and Full Year 2020 Unaudited Financial Results

SHANGHAI–(BUSINESS WIRE)–Lufax Holding Ltd (“Lufax” or the “Firm”) (NYSE: LU), a number one technology-empowered private monetary providers platform in China, right now introduced its unaudited monetary outcomes for the fourth quarter and full yr ended December 31, 2020.

Fourth Quarter 2020 Monetary Highlights

• Complete earnings elevated by 5.9% to RMB13,286 million (US$2,036 million) in fourth quarter of 2020 from RMB12,549 million in the identical interval of 2019.
• Internet revenue elevated by 17.4% to RMB2,847 million (US$436 million) in fourth quarter of 2020 from RMB2,425 million in the identical interval of 2019.

Fourth Quarter 2020 Operational Highlights

Retail credit score facilitation enterprise:

• Excellent steadiness of loans facilitated elevated by 17.9% to RMB545.1 billion (US$83.5 billion) as of December 31, 2020, from RMB462.2 billion as of December 31, 2019.
• Cumulative variety of debtors elevated by 17.1% to roughly 14.5 million as of December 31, 2020, from roughly 12.4 million as of December 31, 2019.
• Throughout the fourth quarter of 2020, excluding our shopper finance subsidiary, 74.4% of latest loans facilitated have been disbursed to the Firm’s core section of small enterprise house owners, up from 63.1% in the identical interval of 2019.
• As of December 31, 2020, excellent steadiness of loans facilitated with ensures from third-party insurance coverage companions accounted for 88.8% of whole excellent steadiness of mortgage facilitated, decreased from 95.6% as of December 31, 2019.
• As deliberate and in step with the Firm’s interpretation of the Supreme Courtroom tips on Mortgage Prime Charge pricing introduced in August, 2020, Lufax adjusted its Annual Proportion Charges (“APRs”) to make sure that the all-in prices for brand spanking new debtors remained beneath 24%, ranging from September 4, 2020. Consequently, the Firm’s retail credit score facilitation income take charge¹ declined from 10.3% for the fourth quarter of 2019 to 9.1% for the fourth quarter of 2020.
• Regardless of its discount of APRs ranging from September 2020, the Firm has maintained its strong enterprise development. New loans facilitated elevated by 3.2% to RMB132.7 billion (US$20.3 billion) within the fourth quarter of 2020 from RMB128.6 billion in the identical interval of 2019. Prime quality debtors² contributed to 70.7% of the brand new loans facilitated within the fourth quarter of 2020 as in comparison with 57.4% in the identical interval of 2019.
• Circulate charges³ for the full loans the Firm had facilitated (excluding legacy merchandise⁴) have been 0.4% in December 2020, as in comparison with 1.0% in February 2020 in the course of the peak of the COVID-19 pandemic in China. Circulate charges for the overall unsecured loans the Firm had facilitated have been 0.5% in December 2020, as in comparison with 1.0% in February 2020 in the course of the peak of the COVID-19 pandemic in China. Circulate charges for the secured loans the Firm had facilitated have been 0.1% in December 2020, as in comparison with 0.7% in February 2020 in the course of the peak of the COVID-19 pandemic in China.
• Days late (“DPD”) 30+ delinquency charge⁵ for the full loans the Firm had facilitated (excluding legacy merchandise) improved to 2.0% as of December 31, 2020, from 2.2% as of September 30, 2020. DPD 30+ delinquency charge for common unsecured loans improved to 2.3% as of December 31, 2020, from 2.5% as of September 30, 2020. DPD 30+ delinquency charge for secured loans improved to 0.7% as of December 31, 2020, from 0.9% as of September 30, 2020.
• DPD 90+ delinquency charge⁶ for the full loans the Firm had facilitated (excluding legacy merchandise) improved to 1.2% as of December 31, 2020, from 1.3% as of September 30, 2020. DPD 90+ delinquency charge for common unsecured loans improved to 1.3% as of December 31, 2020, from 1.5% as of September 30, 2020. DPD 90+ delinquency charge for secured loans improved to 0.4% as of December 31, 2020, from 0.5% as of September 30, 2020.

Wealth administration enterprise:

• Complete variety of registered customers grew to 46.2 million as of December 31, 2020, from 44.0 million as of December 31, 2019.
• Complete variety of lively traders grew to 14.9 million as of December 31, 2020, from 12.5 million as of December 31, 2019.
• Complete consumer property grew by 23.0% to RMB426.6 billion (US$65.4 billion) as of December 31, 2020, from RMB346.9 billion as of December 31, 2019.
• Shopper property within the Firm’s present merchandise (excluding legacy merchandise⁷) elevated by 67.2% to RMB407.2 billion (US$62.4 billion) as of December 31, 2020, from RMB243.6 billion as of December 31, 2019.
• As of December 31, 2020, legacy merchandise accounted for 4.5% of whole consumer property, down from 29.8% as of December 31, 2019.
• 12-month investor retention charge as of December 31, 2020 remained excessive at 96.8%, as in contrast with 93.3% as of December 31, 2019.
• Contribution to whole consumer property from prospects with investments of greater than RMB300,000 on the Firm’s platform elevated to 75.5% as of December 31, 2020, from 73.1% as of December 31, 2019.
• Throughout the fourth quarter of 2020, the annualized take charge⁸ for present services and products on the Firm’s wealth administration platform was 31.4 bps, as in comparison with 21.5 bps in the course of the fourth quarter of 2019.

Mr. Ji Guangheng, Chairman of Lufax, commented, “Because the regulatory setting continued to tighten in 2020, we maintained lively dialogues with regulators and proactively communicated our company mission and enterprise worth propositions. Not like different on-line shopper lending platforms, Lufax primarily serves micro and small enterprise house owners and thus facilitates the expansion of the bodily economic system. Our mission is in full alignment with the coverage instructions. Moreover, we now have lowered our lending prices and elevated our total risk-taking charge. Past transitioning to a risk-sharing enterprise mannequin, we additionally stopped accepting on-line deposits and shifted our focus to wealth administration and know-how empowerment. With our superior know-how capabilities, subtle administration knowhow, sturdy pricing energy, and versatile danger mitigation experience, we are going to full our enterprise transition easily and preserve regulatory compliance on the similar time.”

Mr. Gregory Gibb, Co-Chief Govt Officer of Lufax, commented, “We remained steadfast in our dedication to driving prime quality and worthwhile development within the face of regulatory uncertainties and macro headwinds. Throughout the fourth quarter, we bolstered our credit score portfolio high quality, transitioned to a extra sustainable risk-sharing enterprise mannequin, expanded our protection of core buyer segments, and grew our present product shoppers considerably. Consequently, we exceeded our earlier steerage, elevated our steadiness of loans facilitated by 17.9% yr over yr to RMB545.1 billion, and grew our consumer property by 23.0% yr over yr to RMB426.6 billion by the tip of 2020. Trying forward, we plan to stay cognizant of the evolving regulatory panorama whereas additionally working diligently to enhance our unit economics and optimize our product combine.”

Mr. James Zheng, Chief Monetary Officer of Lufax, commented, “We continued to ship strong monetary ends in the fourth quarter of 2020, growing our whole earnings by 5.9% yr over yr to 13.3 billion. Extra importantly, in the course of the interval, our internet revenue elevated by 17.4% yr over yr to 2.8 billion, whereas our internet revenue margin additional expanded to 21.4% from 19.3% in the identical interval of 2019. In the meantime, sure components have affected the tempo of our income and expense recognition, making a timing mismatch between our monetary and enterprise outcomes. Such components have impacted our fourth quarter outcomes and can proceed to affect our 2021 outcomes going ahead. Moreover, these components will doubtless lead to extra quarterly motion and volatility. While our pre-tax internet margin is briefly underneath stress on account of these components and value changes from September 2020, we now have already noticed early indicators of restoration and anticipate this pattern to proceed all through the rest of 2021.”

Fourth Quarter 2020 Monetary Outcomes

TOTAL INCOME

Complete earnings elevated by 5.9% to RMB13,286 million (US$2,036 million) within the fourth quarter of 2020 from RMB12,549 million in the identical interval of 2019. The Firm’s income combine modified with the evolution of its enterprise mannequin because it began to step by step bear extra credit score dangers and elevated funding from these consolidated belief plans that provided decrease funding prices.

• Expertise platform-based earnings decreased by 8.5% to RMB9,859 million (US$1,511 million) within the fourth quarter of 2020 from RMB10,778 million in the identical interval of 2019 as a result of lower in retail credit score facilitation service charges, partially offset by the rise in wealth administration transaction and repair charges.
  • Retail credit score facilitation service charges decreased by 9.9% to RMB9,283 million (US$1,423 million) within the fourth quarter of 2020 from RMB10,299 million in the identical interval of 2019, primarily on account of: (i) a rise in loans funded by consolidated trusts because the Firm’s enterprise mannequin continued to evolve; (ii) early repayments by debtors; and (iii) changes in product costs.
  • Wealth administration transaction and repair charges elevated by 20.3% to RMB576 million (US$88 million) within the fourth quarter of 2020 from RMB479 million in the identical interval of 2019. The rise was primarily pushed by the year-over-year improve in charges generated from the Firm’s present merchandise, partially offset by the year-over-year lower in charges generated from the Firm’s legacy merchandise.

• Internet curiosity earnings elevated by 140.8% to RMB2,333 million (US$358 million) within the fourth quarter of 2020 from RMB969 million in the identical interval of 2019, primarily because of the Firm’s elevated utilization of these belief funding channels which can be consolidated by the Firm. As of December 31, 2020, the Firm’s on-balance sheet loans accounted for 21.7% of its whole mortgage steadiness underneath administration as in comparison with 10.4% as of December 31, 2019.
• Assure earnings elevated by 341.4% to RMB256 million (US$39 million) within the fourth quarter of 2020 from RMB58 million in the identical interval of 2019, primarily as a result of improve within the loans for which the Firm bears credit score danger.
• Funding earnings elevated by 4.9% to RMB386 million (US$59 million) within the fourth quarter of 2020 from RMB368 million in the identical interval of 2019.

TOTAL EXPENSES

Complete bills elevated by 11.7% to RMB9,106 million (US$1,396 million) within the fourth quarter of 2020 from RMB8,153 million in the identical interval of 2019.

• Gross sales and advertising and marketing bills elevated by 20.5% to RMB4,885 million (US$749 million) within the fourth quarter of 2020 from RMB4,053 million in the identical interval of 2019.
  • Borrower acquisition bills elevated by 22.3% to RMB2,810 million (US$431 million) within the fourth quarter of 2020 from RMB2,298 million in the identical interval of 2019. The rise was primarily as a result of accelerated recognition of amortized promoting bills from loans originated in prior years as the results of early compensation by prospects.
  • Investor acquisition and retention bills decreased by 17.5% to RMB227 million (US$35 million) within the fourth quarter of 2020 from RMB275 million in the identical interval of 2019. The discount was primarily pushed by the Firm’s enhancements to its investor acquisition and retention effectivity.
  • Common gross sales and advertising and marketing bills elevated by 24.9% to RMB1,848 million (US$283 million) within the fourth quarter of 2020 from RMB1,480 million in the identical interval of 2019, primarily on account of: (i) the postponement of sure advertising and marketing campaigns to the fourth quarter of 2020 because of the COVID-19 outbreak; and (ii) the general improve in advertising and marketing efforts to draw debtors to the Firm’s platform within the fourth quarter of 2020 as companies throughout China resumed their operations within the interval and because the Firm restarted its advertising and marketing actions.

• Common and administrative bills elevated by 47.8% to RMB986 million (US$151 million) within the fourth quarter of 2020 from RMB667 million in the identical interval of 2019, primarily on account of: (i) the reinstatement of worker social safety contribution, which was beforehand suspended in the course of the first three quarters of 2020 following a COVID-19 moratorium issued by the Chinese language authorities; and (ii) greater share-based compensation bills.
• Operation and servicing bills elevated by 10.6% to RMB1,650 million (US$253 million) within the fourth quarter of 2020 from RMB1,492 million in the identical interval of 2019, primarily on account of: (i) development within the excellent steadiness of loans facilitated; and (ii) elevated fee processing bills because of the expanded mortgage compensation quantity. The rise was partially offset by effectivity enhancements within the mortgage approval and assortment course of because of the Firm’s utilization of synthetic intelligence.
• Expertise and analytics bills decreased by 17.4% to RMB461 million (US$71 million) within the fourth quarter of 2020 from RMB558 million in the identical interval of 2019, largely on account of improved effectivity.
• Credit score impairment losses elevated by 1.4% to RMB985 million (US$151 million) within the fourth quarter of 2020 from RMB971 million in the identical interval of 2019, primarily pushed by: (i) elevated danger publicity associated to loans; and (ii) the rise in loan-related receivables from off-balance sheet loans attributable to the COVID-19 outbreak. These components have been partially offset by the year-over-year lower in asset administration impairment losses of economic property.
• Finance prices decreased by 17.0% to RMB326 million (US$50 million) within the fourth quarter of 2020 from RMB393 million in the identical interval of 2019, primarily as a result of lower in borrowing prices.

NET PROFIT

Internet revenue elevated by 17.4% to RMB2,847 million (US$436 million) within the fourth quarter of 2020 from RMB2,425 million in the identical interval of 2019. This improve was partially pushed by whole earnings tax bills within the fourth quarter of 2020, which decreased by 32.4% to RMB1,333 million (US$204 million) from RMB1,971 million in the identical interval of 2019 as a result of lower in non-tax-deductible objects.

EARNINGS PER ADS

Primary and diluted earnings per American Depositary Share (“ADS”) have been each RMB1.25 (US$0.19) within the fourth quarter of 2020. Compared, fundamental and diluted earnings per ADS have been each RMB1.12 in the identical interval of 2019. Two ADSs signify one of many Firm’s peculiar shares.

BALANCE SHEET

The Firm had RMB24,159 million (US$3,703 million) in money at financial institution as of December 31, 2020, as in comparison with RMB7,352 million as of December 31, 2019.

Enterprise Outlook

For the primary quarter of 2021, the Firm expects its new mortgage gross sales to be within the vary of RMB175 billion to RMB180 billion, consumer property to be within the vary of RMB385 billion to RMB395 billion, whole earnings to be within the vary of RMB14.3 billion to RMB14.6 billion, and internet revenue to be within the vary of RMB4.0 billion to RMB4.2 billion.

For the primary half of 2021, the Firm expects its new mortgage gross sales to be within the vary of RMB340 billion to RMB350 billion, consumer property to be within the vary of RMB375 billion to RMB385 billion, whole earnings to be within the vary of RMB28.5 billion to RMB29.3 billion, and internet revenue to be within the vary of RMB7.8 billion to RMB8.0 billion.

These forecasts replicate the Firm’s present and preliminary views available on the market and operational situations, that are topic to adjustments.

Adjustments in Board of Administrators and Administration

The Firm’s board of administrators (the “Board”) has permitted the next adjustments to the Board’s composition, efficient as of January 29, 2021. On account of these adjustments, the Board now consists of 9 administrators, 5 of whom are unbiased administrators, in compliance with the itemizing necessities of the NYSE for a majority unbiased board inside one yr of the Firm’s itemizing. As well as, the audit committee of the Board and the nomination and remuneration committee of the Board now every encompass three unbiased administrators, in compliance with the itemizing necessities of the NYSE for these committees to solely encompass unbiased administrators.

• Mr. Rui Li has been appointed as a director of the Firm.
• Mr. Yunwei Tang has been appointed as an unbiased director and as a member of the audit committee of the Board.
• Mr. David Xianglin Li has been appointed as an unbiased director of the Firm.
• Mr. Renjie Li, who had served because the Chairman of the Board and a director of the Firm since March 2016, has retired from his positions on the Board and the audit committee of the Board.
• Mr. Guangheng Ji, who beforehand was Co-Chairman of the Board and Chairman of Lufax Govt Committee, will assume the only chairmanship of the Board.
• Ms. Sin Yin Tan, who had served as a director of the Firm since December 2014, has resigned from her positions on the Board and the nomination and remuneration committee of the Board for private causes.
• Mr. Jason Bo Yao, who had served as a director of the Firm since December 2014, has resigned from his positions on the Board and the audit committee of the Board for private causes.
• Mr. Eddie Siu Wah Legislation, who had served as a director of the Firm since March 2015, has resigned from his positions on the Board and the nomination and remuneration committee of the Board for private causes.
• Mr. Peter Jurdjevic, who had served as a director of the Firm since July 2020, has resigned from his place on the Board for private causes.
• Mr. Jiming Ha, who had served as an unbiased director of the Firm since April 2018, has resigned from his positions on the Board and the audit committee of the Board for private causes.

Mr. Rui Li is presently the Finance Director of Ping An Group, overseeing group-wide finance transformation and accounting operations. He serves on the board of assorted Ping An subsidiaries and related corporations, together with Ping An Belief, Ping An Monetary Companies, HealthKonnect Medical, OneConnect Monetary Expertise Co., Ltd. (NYSE:OCFT), and others. Mr. Li has over 25 years {of professional} expertise in monetary planning, accounting operations, danger administration, and enterprise transformation, and has labored at PricewaterhouseCoopers Hong Kong, Deloitte USA, and Deloitte Canada. Mr. Li is a member of the American Institute of Licensed Public Accountants and holds the Chartered International Administration Accountant designation. Mr. Li acquired his grasp’s diploma in enterprise administration from Metropolitan State College, USA, and his PhD in finance from the Worldwide College of Administration, France.

Mr. Yunwei Tang has served as an unbiased director for the Common Scientific Industrial (Shanghai) Co., Ltd., an organization listed on the Shanghai Inventory Alternate (SSE: 601231), since April 2017, Ping An Healthcare and Expertise Firm Restricted, an organization listed on the Hong Kong Inventory Alternate (HKG: 01833), since Could 2018, and China Jushi Co., Ltd., an organization listed on the Shanghai Inventory Alternate (SSE: 600176), since Could 2019. Mr. Tang served in quite a few positions, together with lecturer, professor, and assistant to the President and Vice President on the Shanghai College of Finance and Economics from 1984 to 1993, and the President of Shanghai College of Finance and Economics from 1993 to 1999. Mr. Tang obtained his bachelor’s levels in economics from Shanghai Institute of Finance and Economics in 1968 and Ph.D. diploma in economics from Shanghai College of Finance and Economics in 1987.

Mr. David Xianglin Li is presently a professor and school co-director of the Masters of Finance Program at Shanghai Superior Institute of Finance, an affiliate director of the Chinese language Academy of Monetary Analysis at Shanghai Jiao Tong College (the “Academy”), and a director of the Academy’s Threat Administration Middle and FinTech Analysis Middle. Mr. Li has in depth expertise within the finance trade and is a acknowledged chief in credit score derivatives analysis and danger administration. Previous to his present positions, Mr. Li served as the pinnacle of enterprise danger methodology and analytics at Prudential Monetary from April 2016 to August 2017, the pinnacle of modeling at AIG Investments from February 2012 to March 2016, the Chief Threat Officer at China Worldwide Capital Company Ltd. from Could 2008 to January 2012, the pinnacle of credit score by-product analysis and analytics at Barclays Capital from June 2004 to April 2008, and the pinnacle of credit score by-product analysis and analytics at Citigroup from October 2001 to Could 2004. Mr. Li has additionally served in senior positions at AXA Monetary, the RiskMetrics Group/J.P. Morgan, and the Canadian Imperial Financial institution of Commerce, amongst others. Mr. Li obtained his bachelor’s diploma in arithmetic from Yangzhou College in 1983, grasp’s diploma in economics from Nankai College in 1987, MBA diploma from Laval College in 1991, and grasp’s diploma in actuarial science and Ph.D. diploma in statistics from the College of Waterloo in 1993 and 1995.

On the similar time, the Board has reviewed and permitted the appointment of Mr. Yong Suk Cho and Mr. Gregory Dean Gibb as Co-CEOs of the Firm, efficient as of January 29, 2021, with Mr. Cho in command of the Firm’s retail credit score facilitation enterprise and Mr. Gibb in command of the Firm’s wealth administration enterprise.

Convention Name Data

The Firm’s administration will maintain an earnings convention name at 9:00 P.M. U.S. Japanese Time on Tuesday, February 2, 2021 (10:00 A.M. Beijing Time on Wednesday, February 3, 2021) to debate the monetary outcomes. For individuals who want to be a part of the decision, please full on-line registration utilizing the hyperlink offered beneath prematurely of the convention name. Upon registering, every participant will obtain a set of participant dial-in numbers, the Direct Occasion passcode, and a singular entry PIN, which can be utilized to hitch the convention name.

Registration Hyperlink: http://www.directeventreg.com/registration/event/6232817

A replay of the convention name shall be accessible by way of February 10, 2021 (dial-in numbers: +1 (800) 585-8367 or +1 (416) 621-4642; convention ID: 6232817). A stay and archived webcast of the convention name can even be out there on the Firm’s investor relations web site at https://ir.lufaxholding.com.

About Lufax

Lufax Holding Ltd is a number one technology-empowered private monetary providers platform in China. Lufax Holding Ltd primarily makes use of its customer-centric product choices and offline-to-online channels to supply retail credit score facilitation providers to small enterprise house owners and salaried staff in China in addition to tailored wealth administration options to China’s quickly rising center class. The Firm has carried out a singular, capital-light, hub-and-spoke enterprise mannequin combining purpose-built know-how functions, in depth knowledge, and monetary providers experience to successfully facilitate the appropriate merchandise to the appropriate prospects.

Alternate Charge Data

This announcement comprises translations of sure RMB quantities into U.S. {dollars} at a specified charge solely for the comfort of the reader. Until in any other case famous, all translations from RMB to U.S. {dollars} are made at a charge of RMB6.5250 to US$1.00, the speed in impact as of December 31, 2020 as licensed for customs functions by the Federal Reserve Financial institution of New York.

Secure Harbor Assertion

This announcement comprises forward-looking statements. These statements are made underneath the “secure harbor” provisions of america Non-public Securities Litigation Reform Act of 1995. These forward-looking statements will be recognized by terminology corresponding to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and related statements. Statements that aren’t historic information, together with statements about Lufax’s beliefs and expectations, are forward-looking statements. Lufax has primarily based these forward-looking statements largely on its present expectations and projections about future occasions and monetary traits, which contain identified or unknown dangers, uncertainties and different components, all of that are troublesome to foretell and plenty of of that are past the Firm’s management. These forward-looking statements embrace, however should not restricted to, statements about Lufax’s targets and techniques; Lufax’s future enterprise growth, monetary situation and outcomes of operations; anticipated adjustments in Lufax’s earnings, bills or expenditures; anticipated development of the retail credit score facility and wealth administration markets; Lufax’s expectations relating to demand for, and market acceptance of, its providers; Lufax’s expectations relating to its relationship with debtors, platform traders, funding sources, product suppliers and different enterprise companions; common financial and enterprise situations; and authorities insurance policies and rules regarding the trade Lufax operates in. Ahead-looking statements contain inherent dangers and uncertainties. Additional data relating to these and different dangers is included in Lufax’s filings with the U.S. Securities and Alternate Fee. All data offered on this press launch is as of the date of this press launch, and Lufax doesn’t undertake any obligation to replace any forward-looking assertion, besides as required underneath relevant legislation.

Use of Non-IFRS Monetary Measures

Lufax makes use of non-IFRS measures together with adjusted internet revenue, adjusted internet margin and adjusted fundamental and diluted earnings per ADS, in evaluating the Firm’s working outcomes and for monetary and operational decision-making functions. Lufax believes that adjusted internet revenue assist establish underlying traits within the Firm’s enterprise by excluding the affect of non-recurring expense associated to C-round convertible notes restructuring. The Non-IFRS adjusted internet margin is calculated by dividing internet revenue excluding non-recurring expense associated to C-round convertible notes restructuring by whole earnings. Non-IFRS fundamental and diluted earnings per ADS represents fundamental and diluted earnings per ADS calculated by dividing non-IFRS internet earnings attributable to Lufax, which is adjusted for non-recurring expense associated to C-round convertible notes restructuring, by the weighted common variety of peculiar shares expressed in ADS.

Lufax believes that adjusted internet revenue, adjusted internet margin and adjusted fundamental and diluted EPS per ADS present helpful details about the Firm’s working outcomes, improve the general understanding of its previous efficiency and future prospects and permit for better visibility with respect to key metrics utilized by Lufax’s administration in its monetary and operational decision-making.

Non-IFRS adjusted internet revenue, adjusted internet margin and fundamental and diluted EPS per ADS should not outlined underneath IFRS and should not introduced in accordance with IFRS. This Non-IFRS monetary measures have limitations as analytical instrument, and when assessing the Firm’s working efficiency, money flows or its liquidity, traders shouldn’t take into account them in isolation, or as an alternative choice to internet revenue, internet margin or different consolidated statements of complete earnings knowledge ready in accordance with IFRS. The Firm encourages traders and others to overview its monetary data in its entirety and never depend on a single monetary measure.

For extra data on this Non-IFRS monetary measures, please see the desk captioned “UNAUDITED RECONCILIATION OF IFRS AND NON-IFRS RESULTS” set forth on the finish of this press launch.

¹The take charge of retail credit score facilitation enterprise is calculated by dividing the aggregated quantity of retail credit score facilitation service price, internet curiosity earnings, assure earnings and the penalty charges and account administration charges by the common excellent steadiness of loans facilitated for every interval.

²Prime quality debtors consult with G1-G3 debtors. The Firm teams its certified debtors into eight danger ranges, with G1 representing the bottom danger and G8 representing the very best danger amongst certified debtors. A borrower’s danger stage is set primarily based on two main issues. The primary is credit score danger rating, modeled utilizing statistical strategies and primarily based on the data of the Credit score Reference Middle of the Folks’s Financial institution of China and the borrower’s prior data corresponding to compensation, delinquency and software histories. The opposite consideration takes under consideration the shopper’s property, corresponding to residential property, automobile and insurance coverage insurance policies. Debtors with greater credit score danger scores and higher property shall be assigned a decrease danger stage.

³ Circulate charge estimates the share of present loans that can change into non-performing on the finish of three months, and is outlined because the product of (i) the mortgage steadiness that’s overdue from 1 to 29 days as a proportion of the full present mortgage steadiness of the earlier month, (ii) the mortgage steadiness that’s overdue from 30 to 59 days as a proportion of the mortgage steadiness that was overdue from 1 to 29 days within the earlier month, and (iii) the mortgage steadiness that’s overdue from 60 to 89 days as a proportion of the mortgage steadiness that was overdue from 30 days to 59 days within the earlier month.

⁴ Legacy merchandise of retail credit score facilitation enterprise consult with a class of unsecured revolving credit score strains the Firm provided in historic interval which have been phased out for strategic causes.

⁵ DPD 30+ delinquency charge refers back to the excellent steadiness of loans for which any fee is 30 to 179 calendar days late divided by the excellent steadiness of loans.

⁶ DPD 90+ delinquency charge refers back to the excellent steadiness of loans for which any fee is 90 to 179 calendar days late divided by the excellent steadiness of loans.

⁷ Legacy merchandise of wealth administration enterprise consult with quite a lot of merchandise and associated providers that the Firm has traditionally provided however not provides, primarily on account of shifts in technique and regulatory necessities. Legacy merchandise are primarily comprised of sure sorts of structured different merchandise originated from monetary establishments and peer-to-peer platforms.

⁸ The take charge of wealth administration enterprise is calculated by dividing whole wealth administration transaction and repair charges for present merchandise by the Firm’s common present product consumer property.