Core Viewpoint - Lufax Holdings is actively working on resuming trading, releasing financial reports, and implementing internal reforms following recent developments in its operations [1] Group 1: Stock Recent Trends - The company has been working on resuming trading since its H-shares were suspended in January 2025, with a recent announcement on January 27, 2026, indicating that it has provided supplementary investigation results to its new auditor, Ernst & Young, for the audit of its financial reports for 2022-2024 [2] - An announcement on February 3, 2026, emphasized the implementation of corrective measures related to the resumption of trading [2] Group 2: Performance and Operating Conditions - The New York Stock Exchange has approved Lufax's request to postpone the release of its financial reports for 2022-2024 until April 30, 2026, with the company currently preparing these financial results [3] Group 3: Company Structure and Governance - In response to a previous related party transaction issue amounting to 3.84 billion yuan, Lufax has appointed Deloitte as an independent internal monitoring consultant to conduct a comprehensive review of related party transaction management and financial reporting processes, and to implement corrective measures [4] - The former co-CEO and CFO have resigned due to their involvement in the related transactions, and the company is taking management actions against responsible personnel [4] Group 4: Related Party Transaction Progress - On November 26, 2025, Lufax entered into a framework agreement for ongoing related party transactions with a subsidiary of Ping An Insurance, covering product services and property leasing, effective until December 31, 2026 [5] - This agreement requires approval from independent shareholders, and its execution will be closely monitored in 2026 [5]

Domestic Market Overview - The domestic market experienced a volatile consolidation with a slight decrease in trading volume. The Shanghai Composite Index closed at 4065.58 points, down 0.25%, while the Shenzhen Component Index closed at 13906.73 points, down 0.33%. The ChiNext Index fell by 0.73% and the STAR Market 50 Index decreased by 0.71%. The total trading volume of the A-share market was 216.35 billion yuan, showing a slight decline compared to the previous day [1][4][9] - Among the 30 sectors tracked by CITIC, 9 sectors saw gains, with notable increases in the oil and petrochemical, basic chemicals, and electric equipment and new energy sectors. Conversely, the food and beverage, defense and military, and telecommunications sectors experienced significant declines. Additionally, indices related to lithium battery electrolyte, lithium battery anodes, and power batteries showed active performance [1][4][9] Overseas Market Overview - The three major U.S. stock indices all closed higher, with the Dow Jones Industrial Average rising by 2.47%, the S&P 500 increasing by 1.97%, and the Nasdaq Composite gaining 2.18%. Nvidia's stock surged nearly 8%, adding approximately 325 billion dollars to its market capitalization. Caterpillar also saw a rise of over 7%, leading the Dow [2][4] News Highlights - The State Council, led by Premier Li Qiang, held a meeting to discuss policies aimed at promoting effective investment. The meeting emphasized the importance of innovative and effective policy measures to enhance the use of central budget investments, long-term special bonds, and local government special bonds in key areas such as infrastructure and emerging industries [3][11][12] - Eight departments, including the People's Bank of China and the China Securities Regulatory Commission, have strengthened regulations to curb risks associated with virtual currencies. The notice clarifies that virtual currencies do not hold the same legal status as fiat currencies and outlines strict prohibitions on various illegal financial activities related to virtual currencies [14][15][16] - China's foreign exchange reserves have increased for six consecutive months, reaching 3399.1 billion dollars by the end of January 2026, with a month-on-month increase of 41.2 billion dollars, reflecting a growth rate of 1.23%. Additionally, gold reserves have increased for 15 consecutive months, totaling 7.419 million ounces [17][18]

Core Insights - The "Pearl River Financial Summit 2026" was held, focusing on the theme of "Deepening the 'Five Major Articles' to Paint a New Picture for the Bay Area," attracting over 200 guests from regulatory bodies, academia, and financial institutions to explore new financial opportunities in the first year of the 14th Five-Year Plan [1][8] Group 1: Awards and Recognition - Ping An Rongyi, a micro-financing service under Lufax Holding, won the "2025 Outstanding Contribution Team Award for High-Quality Development" for its support and innovative models for small and micro enterprises in the Greater Bay Area [3] - The award signifies recognition of its achievements in inclusive finance and the expectation to continue empowering the real economy during the new journey of the 14th Five-Year Plan [3][9] Group 2: Financial Strategies and Innovations - Inclusive finance is highlighted as a crucial link between financial resources and the real economy, playing an irreplaceable role in stabilizing employment and promoting livelihoods [4] - Ping An Rongyi has been deeply engaged in inclusive finance since 2005, focusing on addressing the financing challenges faced by small and micro enterprises in the Bay Area, which are often hindered by difficulties in obtaining financing [5] Group 3: Service Model and Technology Integration - The company has developed a Bay Area-specific service model that emphasizes speed, precision, and a human touch, utilizing AI for rapid loan approvals and remote consultations [6][7] - The "Prism" project aims to provide customized financial solutions based on in-depth research of local industries, enhancing the accessibility and efficiency of financial services for small enterprises [11][12] Group 4: Future Outlook - Experts at the summit believe that during the 14th Five-Year Plan, the Greater Bay Area will accelerate its development towards becoming a world-class bay area, with a shift from quantitative expansion to qualitative improvement in the financial sector [8] - Ping An Rongyi plans to deepen its digital finance applications and enhance its service coverage while focusing on technology finance, inclusive finance, and green finance through the "Prism" project [10][11]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 陆金所控股有限公司 呈交日期: 2026年2月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06623 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | USD | | 0.00001 | USD | | 100,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 10,000,000,000 | USD | | 0.00001 | USD | | 100,000 | 本月底法定/註冊股本總額： USD 100,000 FF ...

Group 1 - The core viewpoint emphasizes the integration of financial technology into the financial sector, driven by policies aimed at enhancing risk control and efficiency through digital and technological collaboration [1][2] - The financial institutions' core competitiveness is shifting from mere scale expansion to a systematic capability based on technology and risk control [1][2] - The industry faces the challenge of balancing efficiency and risk control amid economic fluctuations and evolving risk patterns [1] Group 2 - The "Cloud Sail AI" solution represents a significant advancement in AI-driven sales processes, achieving a cost reduction to 1.64% (over 30% decrease) and a productivity increase of 2.5 times since its launch in May 2025 [2] - The "Intelligent Shield" system enhances client due diligence by automating material analysis and risk alerts, improving review efficiency by 75% and reducing processing time by 90% [3] - The DeepSeek model has intercepted risk cases amounting to 1.24 billion yuan, demonstrating quantifiable improvements in risk control effectiveness [4] Group 3 - The Aegis project, part of the credit approval process, utilizes AI for risk discovery, review, and decision-making, covering 157,000 applications within five months [5] - The "Intelligent Customer Service 3.0" addresses key pain points in customer service, improving resolution rates by 2% and customer satisfaction from 80% to 85% [5] Group 4 - The company has received recognition for its proactive intelligent risk control system, validated by awards from regulatory bodies for its data security and risk prevention efforts [6][7] - The integration of advanced technologies into financial operations contributes to a robust defense network against fraud, shifting risk management from reactive to proactive measures [6][7] Group 5 - The company’s strategic focus on technology-driven business and intelligent upgrades is seen as a pathway to enhance both service efficiency and risk management capabilities [9] - The future direction includes deepening technological integration to strengthen financial security and provide more inclusive, safe, and efficient financial services [9]

Core Viewpoint - The value of a company ultimately returns to its sustainable profitability and potential to create returns for shareholders [2] Supplementary Investigation Results - From 2017 to 2023, the company provided a series of loans to a third-party company, Decheng Investment, part of which was used to acquire underlying assets of certain risky financial products to compensate retail investors who suffered losses [4] - The accounting treatment of these transactions did not fully reflect their economic substance, leading to a clearer understanding of historical issues and enabling the company to take systematic remedial measures to rebuild credibility [4] Internal Control Governance Upgrade - The company has initiated a deep governance structure upgrade, including reappointing executives and optimizing the governance structure by restructuring the board and appointing a new independent non-executive director as chairman to enhance board independence [6] - An independent committee led by independent directors has been established, and an executive committee has been set up to promote the upgrade of the internal control system [6] - The company has appointed Deloitte Consulting as an independent internal monitoring advisor to conduct a comprehensive review of internal monitoring policies and procedures, covering key areas such as corporate governance, financial reporting, and related party transaction management [6] Resumption Progress and Business Operations - The company is actively advancing resumption work, including cooperating with auditing firms to complete financial audits and implementing internal monitoring rectification measures [8] - Business operations are maintaining a normal pace, with total loan balance reaching 183.8 billion yuan, a decrease of 15.2% year-on-year, and the cumulative number of serviced customers growing to 29.1 million [8] - The consumer finance loan balance is 59.6 billion yuan, with a non-performing loan rate of 1.2% [8] Conclusion - The latest announcement reflects the company's proactive improvements in internal control governance and its firm commitment to protecting investor rights [9] - By introducing external professional capabilities, the company is rebuilding its internal control system to prevent similar issues from occurring in the future [9] - The overall stability of the company's fundamentals indicates a path towards the revaluation of its intrinsic value as short-term disturbances are resolved [9]

Core Viewpoint - The company has clarified its financial practices and compliance risks through a recent announcement, revealing that all 3.84 billion yuan in loans issued via third parties from 2017 to 2023 were used solely for compensating retail investors, dispelling previous market concerns about fund misappropriation and Ponzi schemes [1][2]. Group 1: Historical Context and Governance - The announcement centers on the findings of an independent investigation into past transactions, confirming that these were primarily aimed at compensating retail investors who suffered losses, while also noting that the accounting for these transactions did not fully reflect their economic substance [2]. - The investigation's conclusions eliminate doubts regarding the motivations behind past transactions and demonstrate the company's commitment to investor protection, showcasing a proactive approach rather than a reaction to legal pressures [2]. - The company has implemented a series of systemic remedial measures, including appointing Deloitte as an independent internal control advisor and introducing advanced technologies for real-time transaction monitoring and independent client fund audits [3]. Group 2: Compliance and Risk Management - The company has established a comprehensive risk management framework that integrates technology, systems, and culture, achieving 100% coverage in consumer protection reviews [3]. - The company has conducted 1,191 offline consumer protection education activities, reaching over 40.05 million people, and has improved customer satisfaction to 85%, earning recognition as a "Leading Enterprise in Consumer Rights Protection" [3]. - The company’s MSCI ESG rating has consistently ranked first in China's consumer finance sector for two consecutive years, achieving an AA rating in 2025, reflecting significant improvements in investor protection and internal governance [3]. Group 3: Business Transformation and Growth - The company’s consumer finance loan balance reached 59.6 billion yuan in Q4 2025, a 19% year-on-year increase, with the proportion of total loans rising to 32.4% and the user base expanding to 29.1 million [6]. - The company’s non-performing loan ratio in consumer finance slightly increased to 1.2%, while the C-M3 migration rate remained stable at 1.1%, indicating robust asset quality [6]. - The company’s growth in consumer finance significantly outpaced the overall market, with a 19% increase compared to a mere 0.7% rise in household consumption loans in China for the same period [6]. Group 4: Commitment to Inclusive Finance - The company has linked its development to rural revitalization, providing over 160 million yuan in support to nearly 300 agricultural entrepreneurs, positively impacting the income of 15,000 individuals [7]. - The company’s AI-driven loan solutions have enabled 95% of small and micro clients to receive funds within 1.3 hours, demonstrating its commitment to addressing industry pain points through technological innovation [6]. Group 5: Conclusion and Future Outlook - The company has actively initiated comprehensive internal reforms, including changing audit firms and enhancing governance levels, to strengthen its long-term resilience [8]. - The recent announcement reflects the company’s mature stance in addressing issues, rapidly implementing corrections, and maintaining responsibility, which helps alleviate market uncertainties [8]. - The company is collaborating closely with auditors to progress with financial report reviews and has received approval from the NYSE for a delayed annual report submission, indicating a clear path for resumption of trading [8].

Core Viewpoint - The company has engaged Deloitte Consulting as an independent internal control advisor to conduct a comprehensive review of its internal control system, reflecting its commitment to governance optimization and prudent management practices [1]. Group 1: Governance Enhancements - The company has previously taken steps to optimize its governance structure, including restructuring the board, establishing specialized committees, and appointing a chief risk officer and co-CEOs with substantial backgrounds [1]. - The engagement of Deloitte for an independent review is seen as a proactive "health check" and systematic reinforcement of the existing governance framework, aligning with international best practices [1]. Group 2: Risk Management and Compliance - The modernization of governance is deemed essential for the sustainable development of fintech companies, with independent third-party reviews aiding in the establishment of a robust "system + technology" risk management loop [1]. - This initiative not only aims to meet current resumption guidelines but also provides institutional safeguards for long-term compliance, risk prevention, and sustainable growth, ultimately protecting investor interests [1]. Group 3: Long-term Vision - Market observers note that transforming the process of addressing historical issues into an opportunity for enhancing overall governance capabilities demonstrates the company's long-term thinking [1]. - As the internal control review progresses, a clearer picture of a more regulated, transparent, and stable company is expected to emerge, laying a crucial foundation for rebuilding its image in the capital markets and gaining long-term trust [1].

Core Insights - The integration of artificial intelligence (AI) and finance is transforming the industry, with a focus on achieving the core goal of "technological self-reliance and strength" during the 14th Five-Year Plan period [1] - Lufax Holdings has launched the "Yunfan" platform, which features the first L4-level AI remote consulting advisor in the non-bank credit sector, addressing key pain points such as low customer reach efficiency and high marketing costs [2][4] - The platform utilizes a "large model + knowledge base" application system to enhance service quality and efficiency in the financial sector, aligning with the "AI in ALL" strategy of Ping An Group [1][5] Group 1: AI Remote Consulting Advisor - Lufax Holdings' "Yunfan" platform is designed to overcome traditional remote financing service challenges, providing a full-cycle AI-driven solution [2] - The platform employs a dynamic decision tree algorithm that integrates user behavior data to generate real-time interaction strategies and accurately identify customer needs [2] - The AI advisor's capabilities include multi-dimensional data analysis, demand forecasting, and real-time emotional and semantic understanding of customer interactions [3] Group 2: Operational Impact and Achievements - Since its launch in August, the "Yunfan" platform has facilitated over 140 million yuan in remote financing and reduced operational costs by 30% [4] - The integration of AI has led to a 158% increase in productivity through the implementation of an "AI coach" for each service representative [3] - Lufax Holdings is committed to driving digital and intelligent transformation in the financial industry, contributing to the broader goals of the 14th Five-Year Plan [5][6]

Core Viewpoint - The company has made significant procedural progress in meeting the resumption guidance requirements, including obtaining an extension for annual report submission and ongoing audits, while maintaining normal business operations [1][2] Group 1: Financial Reporting and Auditing - The company successfully received approval from the NYSE for an extension on the annual report submission, primarily due to the need for comprehensive audits by the new auditor, Ernst & Young, covering three consecutive fiscal years from 2022 to 2024 [1] - The management emphasizes the importance of the quality of financial information disclosure, viewing the reasonable delay in audit completion as a common and professional arrangement in the capital market [1] Group 2: Governance and Internal Control - The company is actively enhancing its governance framework by hiring Deloitte as an independent advisor to conduct a systematic review and improvement of its internal control system [1] - This initiative reflects the company's commitment to a "quality first, prudent operation" strategy, aiming to strengthen the governance foundation for long-term development with a focus on investor interests [1] Group 3: Business Performance - The core consumer finance business continues to show growth, with a year-on-year increase in loan balances of 19.0% and an expanding scale of new loans, validating the effectiveness and resilience of the "small and micro + consumer finance" dual-driven model in serving the real economy [2] - As the company steadily implements its established procedures, it is expected to alleviate market concerns and achieve the resumption guidance goals sooner [2]