Lufax

Company Profile and Market Insights

Explore the business model, global strategy, and market performance including insights into its position in China.

Key facts

Founded 2011 • NYSE: LU • HKEX: 6623 • FY2024 annual results (year ended Dec 31, 2024)

RMB24.51b

Total income (FY2024)

(RMB3.60b)

Net loss (FY2024)

RMB216.9b

Loans enabled outstanding balance (Dec 31, 2024)

5.0m

Active borrowers enabled (2024)

25.9m

Cumulative borrowers (Dec 31, 2024)

RMB11.80b

Cash & cash equivalents (Dec 31, 2024)

About

Lufax traces its roots to September 2011, when Ping An Group set up Shanghai Lufax as a wealth management subsidiary. The listed holding company was incorporated in the Cayman Islands in December 2014, and its principal executive office is now at 1333 Lujiazui Ring Road in Pudong, Shanghai. Today, Lufax describes itself as a financial services enabler for small business owners in China, with financing products designed around the needs of entrepreneurs and other high-quality borrowers.

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The company’s mission is to strengthen small business competitiveness and sustainability by giving entrepreneurs easier access to inclusive financial products and by helping institutional partners reach and serve small business owners more efficiently. In its current company profile, Lufax says it works with more than 85 financial institutions in China as funding partners, many of them for more than three years. Lufax also states that it has served around 7.2 million small business owners in China since its founding and reported a retail credit balance of RMB 183.8 billion as of December 31, 2025.

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Lufax’s current profile also reflects a major governance reset. After disclosing findings from an independent investigation in April 2025, the company appointed EY as successor auditor, published its 2024 annual report, and filed its 2024 Form 20-F in February 2026 with restated 2022 and 2023 financials. Leadership changed as well, with Xiang Ji becoming chief executive officer on April 1, 2026. That makes today’s Lufax a more tightly focused Ping An-backed fintech platform centered on credit access for China’s small and micro business owners.

Business Model and Market Position

Lufax is no longer best understood as a broad fintech marketplace. Today, it is a China-focused financial services enabler built around credit access for small business owners. Its main operating engine is Ping An Rongyi, the financing brand rebranded in April 2025, which offers large-ticket general unsecured and secured loans to small business owners and other selected borrowers. A second engine sits in Ping An Consumer Finance, which serves the smaller-ticket consumer loan market under a separate licensed structure. In 2024, Lufax enabled loans for 5.0 million active borrowers and ended the year with RMB216.9 billion in outstanding enabled loans. The company’s current profile states that its retail credit enabled balance stood at RMB183.8 billion as of December 31, 2025.

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How Lufax makes money
Lufax earns revenue from several layers of the credit chain, not from a single referral fee. The model combines loan enablement and post-origination service fees with net interest income, guarantee income, and other servicing fees such as account management. In 2024, total income was RMB24.5 billion, including RMB8.2 billion of technology platform-based income, RMB12.3 billion of net interest income, and RMB3.6 billion of guarantee income. That mix shows how Lufax has moved away from a pure platform-fee model and toward a more balance-sheet-involved, license-driven model.
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How the operating model works
Under Ping An Rongyi, Lufax sources borrowers mainly through offline channels because its core products are larger loans that often require consultation during origination. In 2024, direct sales accounted for 73.7% of new core loans. The company had more than 22,000 direct sales employees covering about 146 cities across China. On the underwriting side, Lufax uses anti-fraud and credit models built on 19 years of proprietary data from about 71.5 million unique applicants. The company says approval can be as fast as 31 minutes for general unsecured loans and 88 minutes for secured loans, with funding generally available the same day.
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Why its market position is distinct
Lufax sits between traditional banks and a pure online loan marketplace. It brings borrower acquisition, risk scoring, product design, servicing, and part of the credit enhancement, while institutional partners still provide a large share of funding. As of December 31, 2024, it worked with 79 banks and 6 trust companies. Its current corporate profile says it now has relationships with more than 85 financial institutions in China. The company also completed a major shift in late 2023, with its licensed financing guarantee subsidiary moving to a 100% guarantee model for each new core retail credit transaction, excluding certain consumer finance products.
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What changed in the current version of Lufax
The updated Lufax story is more focused than the old one. The company no longer enables new wealth management products and has begun winding down its online wealth management business. Management now says growth is centered on a tighter set of licenses, including financing guarantee, consumer finance, microloan, and PAObank’s virtual bank license in Hong Kong. That makes Lufax easier to compare with other China consumer and small business lenders, but it also raises the importance of execution, funding efficiency, and credit control. One pressure point remains the offline sales machine, with the annual report stating that the direct sales channel was operating at a loss in 2024.

Performance in China

Lufax remains a China-focused lender, with performance shaped by credit for small business owners and a faster-growing consumer finance arm. As of December 31, 2025, total outstanding loan balance stood at RMB183.8 billion, down 15.2% from a year earlier. Within that total, consumer finance loans rose 19.0% to RMB59.6 billion, while cumulative borrowers increased 12.5% to about 29.1 million. The mix shift shows that consumer finance is expanding even as the older large-ticket core book continues to contract.

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Distribution and local reach
Lufax still relies on an offline-to-online model in China. In 2024, it had over 22,000 full-time direct sales employees covering about 146 cities, and direct sales sourced 73.7% of new loans that year. That local footprint matters because Lufax’s core borrowers are small business owners who often prefer in-person consultation for larger financing needs.
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Market position and current operating trend
On its current company profile page, Lufax says it ranked second among non-traditional financial service providers for small business owners in China by total inclusive SMB loans enabled, based on an industry comparison as of June 30, 2022. The recent operating picture is mixed. In the fourth quarter of 2025, total new loans enabled fell 26.5% year over year to RMB51.0 billion, while new consumer finance loans still increased 7.4% to RMB28.7 billion. Credit quality also weakened in the core book, with DPD 30+ at 5.6% and DPD 90+ at 3.4% as of December 31, 2025, while the consumer finance NPL ratio stayed lower at 1.2%. This leaves Lufax with a clearer niche in China: offline-assisted lending for small business owners, supported by a growing licensed consumer finance business.

Growth and Future Prospects

Lufax enters 2026 in a rebuilding phase rather than a broad expansion cycle. As of April 9, 2026, the latest audited filing is the 2024 Form 20-F filed on February 17, 2026, while full-year 2025 results have not yet been published. The latest official operating snapshot is the fourth quarter of 2025, and it shows a smaller total loan book, continued growth in consumer finance, and a much higher share of risk retained by Lufax itself.

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Consumer finance is the clearest growth engine
In 2024, consumer finance accounted for 23.1% of outstanding loan balance and 44.8% of new loans, up sharply from 11.8% and 34.2% in 2023. By December 31, 2025, consumer finance outstanding had risen to RMB59.6 billion, up 19.0% year over year, and new consumer finance loans in the fourth quarter of 2025 increased 7.4% even as total new loans fell 26.5%. Lufax is also widening this business through external traffic partnerships with Ant Group, Meituan, ByteDance, and Duxiaoman, which makes consumer finance the most visible near-term source of volume growth.
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The model is becoming more controlled and more balance-sheet intensive
Lufax completed its move to a 100% guarantee model for new core loan transactions in late 2023. By December 31, 2025, the company bore risk on 91.4% of total outstanding balance, up from 74.6% a year earlier. That shift gives Lufax tighter control over underwriting, pricing, and partner coordination, though it also raises the importance of credit quality because more of the risk now sits inside the group.
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The small business franchise still anchors the company
Ping An Rongyi remains the core brand for larger-ticket loans to small business owners. Lufax still had over 22,000 direct sales employees across about 146 cities at the end of 2024, and direct sales sourced 73.7% of new loans that year. The leadership reset fits that focus as well, with Xiang Ji becoming chief executive officer on April 1, 2026 after serving as co-CEO and holding senior roles tied to retail credit and risk management.
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Challenges ahead

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The near-term picture remains difficult. Total outstanding loans fell to RMB183.8 billion by the end of 2025 from RMB216.9 billion a year earlier, and 2024 total income dropped 28.5% to RMB24.5 billion. Credit pressure in the core book also rose, with DPD 30+ at 5.6% and DPD 90+ at 3.4% as of December 31, 2025, while the consumer finance NPL ratio was 1.2%. On top of that, Lufax reported a net loss of RMB3.6 billion in 2024, and its annual report states that the direct sales channel was operating at a loss in 2024.

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Outlook

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The next phase for Lufax is less about returning to its old platform scale and more about building a narrower lending business around consumer finance, core small business credit, and a smaller set of regulated licenses. The company has already stopped enabling new wealth management products, begun winding down the online wealth management business, and said its growth focus sits around financing guarantee, consumer finance, microloan, and PAObank’s virtual bank license. At the same time, the governance repair process is still part of the story, with internal control remediation and follow-up review still ongoing in the latest annual report. That leaves Lufax with a cleaner strategic shape, but also with less margin for weak underwriting, funding inefficiency, or execution mistakes.

Next Earnings Planned for:

April 27, 2026

This Company Profile was written by Dominik Diemer

Dominik Diemer blends an investor mindset with execution discipline.

He is a SAFe Program Consultant (SPC) and Lean Portfolio Management (LPM) practitioner at DMG MORI Digital, working as a SAFe Release Train Engineer and internal consultant in the Lean-Agile Center of Excellence (LACE).

His focus is prioritization, flow, and dependency management that turns strategy into outcomes. With experience across Bertelsmann and the Founders Foundation, he bridges corporate and startup thinking.

He also invests privately in private equity deals, sharpening his view on business models, value drivers, and go-to-market.

StockCounterParts reflects that lens.

Dominik Diemer

Founder of StockCounterparts.com