Revenue has contracted sharply to $4.4B in 2024Q3 from $13.7B in 2022Q2, while gross margins have experienced extreme volatility, collapsing from 80.9% in 2024Q1 to 25.1% in 2024Q3.
| Sales/Revenue | 31.92B | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - |
| Gross Profit | 13.5B | 21.08B | 28.99B | 55.42B | 48.24B | 41.79B | 38.91B | 34.25B | 21.02B |
| Gross Margin % | 42.29% | 74.93% | 69.55% | 80.29% | 74.19% | 81.94% | 88.89% | 84.3% | 64.97% |
| Gross Profit Growth % | - | -27.3% | -47.69% | 14.9% | 15.44% | 7.4% | 13.59% | 62.99% | - |
| Operating Expenses | 14.85B | 21.52B | 14.19B | 21.6B | 24.84B | 23.88B | 19.47B | 15.6B | 12.65B |
| OpEx % of Revenue | - | 76.49% | 34.04% | 31.29% | 38.2% | 46.82% | 44.49% | 38.4% | 39.12% |
| Selling, General & Admin | 8.06B | 0 | 12.17B | 18.59B | 21.55B | 20.79B | 19.74B | 15.22B | 11.58B |
| SG&A % of Revenue | - | - | 29.2% | 26.93% | 33.15% | 40.77% | 45.09% | 37.46% | 35.79% |
| Research & Development | 0 | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - |
| Operating Income | -1.35B | -438.84M | 14.8B | 33.82B | 23.4B | 17.91B | 19.43B | 18.65B | 8.36B |
| Operating Margin % | -4.23% | -1.56% | 35.51% | 49% | 35.99% | 35.12% | 44.4% | 45.9% | 25.86% |
| Operating Income Growth % | - | -102.97% | -56.24% | 44.54% | 30.66% | -7.84% | 4.21% | 122.98% | - |
| EBITDA | -1.26B | -172.71M | 15.41B | 34.59B | 24.22B | 18.77B | 20.25B | 19.6B | 9.23B |
| EBITDA Margin % | -3.95% | -0.61% | 36.96% | 50.12% | 37.26% | 36.81% | 46.27% | 48.24% | 28.55% |
| EBITDA Growth % | -154.43% | -101.12% | -55.47% | 42.81% | 29.05% | -7.3% | 3.32% | 112.28% | - |
| D&A (Non-Cash Add-back) | 90.59M | 266.14M | 606.15M | 771.14M | 824.63M | 862.71M | 817.26M | 951.46M | 869.73M |
| EBIT | -1.35B | 392.67M | -606.15M | 33.82B | 23.4B | 17.91B | 19.43B | 18.65B | 8.36B |
| Net Interest Income | 10.63B | 15.49B | 12.17B | 18.33B | 13.74B | 6.54B | 2.58B | 5.18B | 6.33B |
| Interest Income | 22.2B | 16.44B | 21.38B | 31.58B | 24.15B | 12.74B | 5.58B | 10.62B | 15.03B |
| Interest Expense | 11.57B | 954.68M | 9.21B | 13.24B | 10.41B | 6.19B | 3B | 5.44B | 8.7B |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - |
| Pretax Income | -1.72B | -562.01M | 1.65B | 13.01B | 23.4B | 17.91B | 19.43B | 18.65B | 8.36B |
| Pretax Margin % | -5.39% | -2% | 3.95% | 18.85% | 35.99% | 35.12% | 44.4% | 45.9% | 25.86% |
| Income Tax | 1.4B | 1.1B | 610.63M | 4.24B | 6.69B | 5.63B | 6.12B | 5.07B | 2.34B |
| Effective Tax Rate % | -81.08% | -196.26% | 37.12% | 32.57% | 28.59% | 31.45% | 31.47% | 27.2% | 27.94% |
| Net Income | -3.38B | -2.04B | 886.87M | 8.7B | 16.8B | 12.35B | 13.33B | 13.62B | 5.97B |
| Net Margin % | -10.59% | -7.25% | 2.13% | 12.6% | 25.85% | 24.23% | 30.46% | 33.52% | 18.44% |
| Net Income Growth % | -469.24% | -330.08% | -89.81% | -48.23% | 36.02% | -7.34% | -2.11% | 128.31% | - |
| Net Income (Continuing) | -3.12B | -1.66B | 1.03B | 8.78B | 16.71B | 12.28B | 13.32B | 13.58B | 6.03B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.79B | 2.21B | 1.54B | 1.6B | 1.51B | 1.59B | 103.8M | 18.73M | 568.61M |
| EPS (Diluted) | -11.80 | -4.76 | 3.08 | 30.32 | 53.52 | 44.40 | 49.08 | 50.60 | 22.42 |
| EPS Growth % | -311.07% | -254.55% | -89.84% | -43.35% | 20.54% | -9.54% | -3% | 125.69% | - |
| EPS (Basic) | - | -4.76 | 3.10 | 30.40 | 56.88 | 44.76 | 49.08 | 50.60 | 22.42 |
| Diluted Shares Outstanding | 286.58M | 433.34M | 286.79M | 286.84M | 339.94M | 276.01M | 271.67M | 269.22M | 266.14M |
| Basic Shares Outstanding | 286.58M | 433.34M | 286.54M | 286.26M | 295.46M | 276.01M | 271.67M | 269.22M | 266.14M |
| Dividend Payout Ratio | - | - | 161.86% | 88.71% | - | - | - | - | - |
Credit impairment and regulatory headwinds
As reported in recent financial statements, Lufax's revenue has experienced a sharp decline, dropping to $4.4B in 2024Q3 from $13.7B in 2022Q2, signaling that the company's transition toward a risk-bearing model is coinciding with a significant reduction in overall business volume and market footprint.
The persistent downward trend in top-line performance suggests that the company is struggling to maintain scale while shifting its business model. This contraction appears to be a deliberate effort to prioritize asset quality over growth, yet it raises concerns regarding the long-term viability of the current revenue generation engine.
Based on the provided income statement data, Lufax's gross margin has exhibited extreme volatility, collapsing from a peak of 80.9% in 2024Q1 to just 25.1% by 2024Q3, which highlights the structural instability inherent in the company's current transition toward a capital-heavy, risk-bearing credit model.
The erratic nature of these margins suggests that the company is facing significant challenges in managing the costs associated with its loan portfolio. Investors should monitor whether this margin compression is a temporary byproduct of the business model shift or a permanent erosion of the company's pricing power.
According to the latest quarterly filings, Lufax's operating income has swung from a positive $4.4B in 2022Q2 to a loss of $718.4M in 2024Q3, demonstrating that the company's high fixed-cost base is failing to scale effectively as revenue declines and credit impairment charges mount.
The inability to maintain positive operating margins suggests that the company's offline-heavy infrastructure is becoming a liability in the current environment. This lack of operating leverage implies that the firm may need to aggressively rationalize its cost structure to return to profitability.
As indicated by the company's recent income statements, Lufax has reported consistent net losses for four consecutive quarters, with a net loss of $874.8M in 2024Q3, suggesting that credit impairment losses are significantly outweighing the revenue generated from its core credit facilitation activities.
The persistent net losses indicate that the quality of earnings is currently poor, as the company absorbs the impact of its shift to a 100% risk-bearing model. This trend warrants further investigation into whether the current provisioning levels are sufficient to cover the underlying credit risks.
Based on the provided financial data, the shift toward a 100% risk-bearing model appears to have fundamentally altered the company's risk profile, as evidenced by the transition from consistent profitability in 2022 to recurring quarterly losses, which may suggest that the business model is unsustainable.
Short-sellers would likely focus on the rapid deterioration of the bottom line and the potential for further credit impairment charges to erode the company's capital base. The market's deep discount to book value may reflect a fundamental skepticism regarding the company's ability to successfully navigate this transition.
Quick answers to the most common questions about buying LU stock.
Lufax Holding Ltd (LU) reported a net loss of $2.04B for the fiscal year ending 2025.
Lufax Holding Ltd (LU) reported an operating income of $-438.8M, resulting in an operating profit margin of -1.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Lufax Holding Ltd (LU) generated $21.08B in gross profit for the year, representing a gross profit margin of 74.9%. This demonstrates the company's core pricing power and production efficiency.