Judy Zhang

Judy Zhang inquired about Lexin's management of industry credit risk fluctuations during the new regulation's transitional period and the specific improvements made to the company's risk management system.

Answer

Chief Risk Officer Arvin Zhanwen Qiao detailed proactive risk management adjustments made since Q2 2025, including identifying vulnerable customers and using automated tools for account clearing and credit line reduction. He noted that day-one delinquency for the overall loan book increased by approximately five basis points quarter-over-quarter, with new loan FPD30 expected to be within 5%, and observed signs of stabilization in October and November.

Judy Zhang asked about Lexin's strategy for managing industry credit risk fluctuations during the regulatory transition period and the improvements made to its risk management system.

Answer

Chief Risk Officer Arvin Zhanwen Qiao detailed Lexin's proactive risk management adjustments since Q2, including identifying vulnerable customers, using automated tools for account clearing and credit line reduction, and strengthening engagement with prime customers. He noted that overall risk fluctuations remained controlled in Q3, with day-one delinquency up slightly and new loan FPD30 within 5%. He also mentioned that day-one delinquency peaked in October and showed improvement in November, with new loan FPD30 expected to improve in October.

Judy Zhang from Citi asked for an update on the company's operational run rate for the third quarter to date, focusing on trading volume, client assets, and new customer growth. She also inquired about the progress of the Hong Kong market expansion, the quality of local clients, and the potential impact of increased customer acquisition efforts on the Customer Acquisition Cost (CAC).

Answer

A company representative stated that Q3-to-date performance is satisfactory, with average monthly shares traded exceeding the Q2 average and client assets showing high single-digit growth. CFO John Zeng added that the company has stepped up its investment in Hong Kong, resulting in average net asset inflows of around $30,000 per new user and a 50% QoQ increase in total client assets in the region. He noted the CAC in Hong Kong is around $400+ with a healthy payback period of about two quarters, and it is expected to remain at this level.

Judy Zhang from Citi inquired about the progress of UP Fintech's Hong Kong business, covering both traditional brokerage and the new virtual asset trading for retail investors, including plans for pricing and customer acquisition. She also asked for an update on the wealth management business, its current scale, and product offerings.

Answer

CEO Tianhua Wu highlighted strong progress in Hong Kong, noting high client ARPU and a doubling of client assets quarter-over-quarter. He also mentioned the successful launch of retail crypto trading with a competitive 'zero commission, zero platform fee' pricing strategy. An executive added that the wealth management business saw assets and users grow over 20% QoQ, with product upgrades like T+0 settlement for the Tiger Vault product to enhance user experience.

Judy Zhang of Citigroup Inc. requested more details on Lufax's recent asset quality performance, delinquency trends since Q3, and any plans for shareholder returns like a special dividend.

Answer

Chairman and CEO Y.S. Cho reported that asset quality was stable in Q3, with the Puhui loan C-M3 flow rate at 0.9% and the consumer finance NPL ratio improving to 1.2%. He expressed confidence in future improvements. Regarding shareholder returns, Mr. Cho stated there are no new specific plans following the recent special dividend, but management remains committed to exploring all options to deliver long-term value.

Judy Zhang from Citigroup inquired about OneConnect's potential dividend payout plans following its first-half profitability and its strategy and growth targets for the overseas business.

Answer

CFO Yongtao Luo explained that while the company achieved its first-ever profit, driven by a one-off gain, the current focus is on reinvesting capital into growth areas like R&D and overseas expansion rather than issuing a dividend. Chairman and CEO Chong Feng Shen detailed the overseas strategy, highlighting strong momentum and confidence in double-digit revenue growth for the year. The strategy centers on markets in Southeast Asia, Hong Kong, South Africa, and the Middle East, with a focus on exporting proven solutions like the smart credit lending system and omnichannel agent platforms.

Judy Zhang of Citigroup inquired about OneConnect's potential dividend payout plans following its first-half profitability and asked for an update on its overseas business strategy and revenue growth targets for the year.

Answer

CFO Yongtao Luo responded to the dividend question, stating that while achieving profitability was a significant milestone, the company is prioritizing reinvestment for sustainable growth in third-party revenue, R&D, and overseas expansion. Chairman and CEO Chong Feng Shen addressed the overseas business, expressing confidence in achieving double-digit revenue growth. He outlined a strategy focused on markets like Southeast Asia, Hong Kong, and the Middle East, with key product exports including the smart credit lending system and omnichannel insurance solutions.