Mission Statement, Vision, & Core Values of Lufax Holding Ltd (LU)

Understanding the Mission Statement, Vision, and Core Values of Lufax Holding Ltd (LU) is crucial for any investor, especially as the company navigates a shifting regulatory landscape and a challenging economic environment.

Lufax Holding's mission is clear: to foster small business competitiveness and sustainability by giving individual entrepreneurs easy access to inclusive products and services and empowering institutional partners to serve Small Business Owners (SBOs) efficiently. This focus is paying off, as the cumulative number of borrowers surged by 23.9% to approximately 27.0 million as of March 31, 2025. But does a strong mission automatically translate to a strong bottom line, particularly when the consensus Earnings Per Share (EPS) forecast for the fiscal year ending December 2025 sits at $0.28? How does the company's vision-to make retail borrowing and wealth management easier, safer, and more efficient-square with the fact that Lufax Holding is now bearing risk on 79.9% of its outstanding balance, a significant jump from 48.3% a year earlier? Let's dig into the foundational principles that guide this financial services giant.

Lufax Holding Ltd (LU) Overview

Lufax Holding Ltd (LU) is a technology-empowered personal financial services platform in China, primarily addressing the significant demand for credit among small business owners and salaried workers. You need to understand that this company is a major player, not just a startup; it was established in 2011 as a spin-off from Ping An Insurance (Group) Company of China and went public on the New York Stock Exchange (NYSE) in October 2020.

The core business operates through two key areas: the Retail Credit Facilitation Hub and the Wealth Management Hub. This dual focus is defintely how they capture a broad market. Their services range from short-term loans and working capital solutions for micro, small, and medium enterprises (MSMEs) to sophisticated wealth management options like discretionary investment accounts and private equity funds for China's middle class and affluent population.

Looking at the near-term, the company's revenue trajectory is stabilizing after a period of transition. Here's the quick math: taking the trailing twelve-month (TTM) revenue of $3.56 billion as of September 30, 2024, and applying the analyst-forecasted revenue growth rate of over 10% for 2025, we project current annual sales to be in the range of nearly $3.95 billion. You can find a deeper dive into the company's foundational structure and how it generates revenue by reading Lufax Holding Ltd (LU): History, Ownership, Mission, How It Works & Makes Money.

This is a complex financial machine.

Financial Performance and 2025 Outlook

The financial picture for Lufax Holding Ltd in 2025 is marked by a critical turnaround expectation, even as they navigate regulatory and reporting challenges. While the company reported TTM revenue of $3.56 billion as of Q3 2024, the focus is on the future profitability. Analysts are forecasting a significant shift, with consensus estimates for 2025 earnings (net income) landing at about $458.3 million. That's a powerful swing back toward profitability that investors are watching closely.

What this estimate hides is the operational risk, though. The company received a notice from the NYSE regarding the late filing of its 2024 Annual Report (Form 20-F) due to an auditor change, and they have an extension until April 30, 2026, to regain compliance. Still, recent policy changes in China, which aim to stimulate consumption through fiscal measures, are expected to be a tailwind for Lufax's consumer finance business.

• Q3 2024 Revenue: Reported at $778.6 million.
• 2025 Earnings Forecast: Consensus at $458.3 million.
• Share Price (Nov 2025): Trading around $2.43 per share.

The appointment of a new Co-Chief Executive Officer and Chief Marketing Officer in October 2025 also signals a fresh strategic approach aimed at capitalizing on these shifting market dynamics and driving the anticipated profit turnaround.

Lufax Holding Ltd as an Industry Leader

Lufax Holding Ltd isn't just another fintech company; it has solidified its position as a leading financial services enabler for small business owners in China. This isn't a vague claim; it's grounded in their extensive network and market focus. They have established relationships with 85 financial institutions in China that serve as funding partners, many of which have worked with Lufax for over three years.

Their strength lies in leveraging technology to streamline credit underwriting and provide tailor-made financial products, which is crucial in a market as vast and complex as China. They are a critical bridge connecting institutional funding with the underserved credit needs of the small business sector. This strategic positioning, coupled with the backing of Ping An Group, gives them a competitive moat (a sustainable competitive advantage).

The company's market capitalization, which was around $2.43 billion earlier in 2025, reflects the market's cautious but attentive view of their turnaround story and core business strength. To truly understand why Lufax Holding Ltd remains a dominant force in the Chinese financial ecosystem, and what their long-term strategy is, you need to look closer at their mission and operational framework.

Lufax Holding Ltd (LU) Mission Statement

You need to know exactly what a company is aiming for, especially one navigating the complex Chinese financial technology (fintech) landscape like Lufax Holding Ltd. The mission statement is not just a marketing line; it's the strategic filter for every capital allocation and product decision. Lufax Holding Ltd's mission is clear: to foster small business competitiveness and sustainability by providing individual entrepreneurs with easy access to inclusive products and services and empowering institutional partners to reach and serve SBOs efficiently.

This mission is the bedrock for their operations, guiding their technology-first approach to retail credit facilitation. For the 2025 fiscal year, this focus is expected to translate into a projected annual revenue of approximately $3.51 billion, according to analyst consensus, even as the company manages a challenging economic environment. It's a mission that maps directly to the real economy, supporting the backbone of China's growth: the small business owner (SBO).

The company's commitment to this mission is also reflected in its improved governance and risk profile. For instance, Lufax Holding Ltd's dedication to a trusted platform helped them achieve an MSCI ESG rating upgrade to 'AA' in July 2025, signaling stronger environmental, social, and governance practices. You can dive deeper into the market perception of this strategy by Exploring Lufax Holding Ltd (LU) Investor Profile: Who's Buying and Why?.

Fostering Small Business Competitiveness and Sustainability

The first core component of the mission targets the economic vitality of their primary customer: the small business owner. Lufax Holding Ltd understands that a sustainable business model requires a healthy client base, so their products are designed to serve the real economy, not just generate short-term fees.

This focus is evident in their customer growth. As of March 31, 2025, the cumulative number of borrowers on the platform reached approximately 27.0 million, representing a significant year-over-year increase of 23.9%. This growth demonstrates a successful penetration into the underserved small and micro business (SMB) segment.

The company's risk management is key here. They continuously refine their credit underwriting using advanced data analytics to ensure the loans they facilitate are sustainable for the borrowers. The DPD 30+ delinquency rate for general unsecured loans was managed down to 4.2% as of March 31, 2025, a sign that their credit models are holding up, which is defintely crucial for long-term sustainability.

Providing Easy Access to Inclusive Products and Services

The second pillar is about accessibility and inclusion, which is where Lufax Holding Ltd's technology-driven, offline-to-online (O2O) model shines. They are bridging the gap between traditional financial institutions and the millions of SBOs who lack collateral or a long credit history.

The company's digital platform offers a range of tailored financing products, from short-term loans for working capital to installment financing. This is the practical application of their vision: making retail borrowing and wealth management easier, safer, and more efficient. A key action here is the use of technology like their 'SmartShield' intelligent customer due diligence solution, launched in February 2025, which streamlines the application process while enhancing risk assessment.

In terms of investor returns, this efficiency is expected to contribute to a consensus Earnings Per Share (EPS) forecast of $0.26 for 2025. The platform is designed to be a frictionless experience, using technology to cut down the time and cost for an entrepreneur to secure the capital they need.

Empowering Institutional Partners to Reach and Serve SBOs Efficiently

The final component acknowledges Lufax Holding Ltd's role as an enabler, not just a direct lender. By partnering with established financial institutions, they scale their reach and manage regulatory capital more effectively. This is a capital-light, hub-and-spoke business model.

Lufax Holding Ltd has established relationships with over 85 financial institutions in China, many of which have been funding partners for over three years. This network allows the institutional partners to deploy capital into the SMB segment, a space they often struggle to access directly due to high operational costs and lack of specialized risk models.

A critical trend to watch is the shift in risk-bearing: as of March 31, 2025, Lufax Holding Ltd itself bore the risk on 79.9% of its outstanding loan balance, a significant increase from the prior year. This shows a strong commitment to the quality of their loan facilitation and a willingness to put their own capital to work, which aligns incentives with their institutional partners and the regulatory environment. This risk-sharing model is what makes the platform a true partner, not just a broker.

Lufax Holding Ltd (LU) Vision Statement

You're looking for a clear map of where Lufax Holding Ltd (LU) is headed, and honestly, the company's vision and mission tell a story of strategic contraction and digital focus. The core takeaway is this: Lufax is doubling down on its role as a technology-enabled financial services enabler for small business owners (SBOs) in China, aiming for stability and efficiency over hyper-growth.

The company's stated vision is simple and powerful: To make retail borrowing and wealth management easier, safer and more efficient. This isn't just corporate fluff; it's a direct response to the regulatory and macroeconomic pressures that have hit the fintech sector hard. The focus on 'safer' is a defintely a nod to their shift toward a 100% guarantee model for new loans, stabilizing credit costs, and strengthening asset quality.

Vision: Easier, Safer, and More Efficient Finance

The emphasis on making finance 'easier, safer, and more efficient' is the lens through which you should view Lufax Holding Ltd's capital allocation. The market is rewarding this pivot, with analysts forecasting a normalized net margin of approximately 10.5% for the full fiscal year 2025. That's a healthy margin in a tough environment, showing their cost-cutting and risk-tightening initiatives are working.

The 'easier' and 'efficient' part is driven by technology. Lufax is heavily integrating Artificial Intelligence (AI) and fintech innovations into its platforms to streamline service delivery. This digital-first strategy is critical because it lowers the unit operating expenses that have weighed on profitability in the past. Here's the quick math on the strategic shift: while total new loan sales fell 15.5% year-over-year to RMB45.2 billion in Q2 2024, the customer finance business-which uses smaller-ticket and revolving product structures-actually grew 23.6% year-over-year. This proves that the efficient, smaller-ticket products are the growth engine right now. You can get a deeper dive into their balance sheet in Breaking Down Lufax Holding Ltd (LU) Financial Health: Key Insights for Investors.

• Focus on smaller-ticket loans is boosting efficiency.
• AI integration is cutting operational costs.
• New loan model is stabilizing credit costs.

Mission: Fostering Small Business Competitiveness

Lufax Holding Ltd's mission is explicitly focused on the supply side of the Chinese economy: to foster small business competitiveness and sustainability by providing individual entrepreneurs with easy access to inclusive products and services and empowering institutional partners to reach and serve SBOs efficiently. This mission aligns perfectly with China's broader economic pivot, positioning Lufax to benefit from increased domestic activity and the push to support small and micro-sized businesses.

This isn't charity; it's a smart business model. Small business owners (SBOs) represent a massive, yet underserved, credit market. By enabling 85 financial institutions in China to reach these SBOs, Lufax acts as the vital technology layer, taking a cut without holding all the credit risk. Analysts are optimistic about the firm's financial prospects, forecasting full-year 2025 earnings (net income) to be around $458.3 million. This projected profitability directly reflects the success of their mission to efficiently serve this high-demand segment.

Core Value: Risk Management and Institutional Partnership

While a formal list of core values isn't always public, Lufax Holding Ltd's actions in 2025 clearly define their operating principles: disciplined risk management and strong institutional partnership. The company's continued reliance on its parent, Ping An Insurance (Group) Company of China, Ltd. (Ping An Group), is a core strategic pillar, with a shareholder meeting scheduled for December 29, 2025, to approve the renewal of key framework agreements.

This partnership provides a solid foundation, which is crucial given the firm's current leverage ratio of 2.6, indicating a manageable but significant debt load relative to its assets. The commitment to risk is further evidenced by the improving asset quality, with the non-performing loan (NPL) ratio in the customer finance business declining to 1.4% in Q2 2024. That's a clear signal that prudence is prevailing over reckless growth.

The strategic shift to a 100% guarantee model for new loans has lifted the take-rate (the percentage of the loan value Lufax earns) to 9.3% in Q2 2024, up from 7.0%. This operational change is the ultimate expression of their core value: prioritize a safer, more profitable fee structure over volume at all costs. The market consensus revenue forecast for the full fiscal year 2025 is approximately $3.56 billion, which suggests a stabilization of the top line as the high-quality, high-margin business grows.

Lufax Holding Ltd (LU) Core Values

As a seasoned financial analyst, I look past the glossy annual report language to see what a company actually prioritizes-what it spends money on and what metrics it tracks. For Lufax Holding Ltd, the focus is clearly on enabling the backbone of the Chinese economy: the small business owner. Their values aren't just posters on a wall; they are the strategic pillars that explain their 2025 performance, even with market headwinds.

The core mission is straightforward: Lufax Holding Ltd (LU): History, Ownership, Mission, How It Works & Makes Money aims to foster small business competitiveness and sustainability by giving individual entrepreneurs easy access to inclusive products and services, while also empowering institutional partners to serve those Small Business Owners (SBOs) efficiently. This translates into three actionable core values that drive their operations.

Small Business Empowerment and Inclusivity

This value is Lufax Holding Ltd's reason for being. It's about financial inclusion (making services available to underserved markets), which is why they focus on the SBO segment. You see this commitment in their customer growth: as of Q3 2025, the cumulative number of borrowers increased from approximately 24.8 million to 28.5 million, marking a significant 15.3% increase in the user base.

Here's the quick math: that growth in borrowers means more small entrepreneurs are getting the capital they need to operate and expand. This focus is a defintely a key differentiator. The company's acquisition of a nationwide small lending license in July 2024 was a critical move, enabling over RMB1 billion in new loans by Q3 2024, which directly supports this core value by reducing funding costs and expanding reach into 2025.

• Grew borrower base by 15.3% in 2025.
• Prioritize financing for small business owners.
• Secured license to lower funding costs for SBO loans.

Fintech Innovation and Digital-First Strategy

You can't serve millions of small businesses without serious technology; scale demands automation. Lufax Holding Ltd embodies this value by blending artificial intelligence (AI) and financial technology (fintech) to streamline service delivery. In 2025, they introduced a new AI feature that allows seamless transactions through predictive analytics, which is a direct investment in operational efficacy and customer experience. This digital transformation is not just a buzzword; it's a necessity for maintaining a competitive edge and managing the sheer volume of micro-loans.

The market is taking note of this strategic direction. Analysts project Lufax Holding Ltd's revenue in local currency terms to grow strongly by +12.7% for the full fiscal year 2025, a forecast heavily underpinned by the success of these digital-first strategies. This innovation allows Lufax Holding Ltd to underwrite credit efficiently, which is the only way to make small-ticket lending profitable.

Prudent Risk Management

In financial services, especially lending to small businesses, risk management is the ultimate core value-it's what keeps the lights on. Lufax Holding Ltd demonstrates this through its focus on asset quality and corporate governance. For instance, the Non-Performing Loan (NPL) ratio saw an improvement in Q3 2024, decreasing to 1.2% from 1.4% in the previous quarter, a crucial indicator of stable asset quality that continues to be a focus in 2025.

The company's commitment to rigor is also evident in their governance actions in 2025, such as the application for an extension to file the 2024 Annual Report to ensure the accuracy of financial data following a change in auditor. What this estimate hides is the complexity of auditing three full fiscal years (2022 to 2024) under a new firm, Ernst & Young, which requires a responsible approach to investor disclosure. This transparency, coupled with a manageable leverage ratio of 2.6, reflects a sound management philosophy essential for navigating economic uncertainties.