Lu Control (06623) achieved total revenue of 6.227 billion yuan in the second quarter and continued growth in the consumer finance business

According to the Zhitong Finance App, Lu Control (06623) announced financial results for the second quarter of 2026, with total revenue of 6.227 billion yuan (RMB, same below); net loss of 82 million yuan, a year-on-year decrease of 82.6%.

As of June 30, 2026, the total loan balance was RMB 167.3 billion, down 13.5% from RMB 193.4 billion as of June 30, 2025. Among them, the consumer finance loan balance as of June 30, 2026 was RMB 65.4 billion, an increase of 19.9% compared with RMB 54.5 billion as of June 30, 2025.

In the second quarter of 2026, the total amount of new loans granted was RMB 51.1 billion, an increase of 4.6% compared with RMB 48.9 billion in the same period in 2025. Of these, new consumer finance loans in the second quarter of 2026 were RMB 36.9 billion, an increase of 27.6% compared with RMB 28.9 billion in the same period in 2025.

As of June 30, 2026, the cumulative number of borrowers increased by 13.1% from about 27.8 million as of June 30, 2025 to about 31.4 million.

Mr. Ji Xiang, CEO of Lujin Holdings, said, “Today's results mark an important milestone for Lujin Holdings to get back on track and the predictable pace of financial reporting. In the past year, we completed the re-audit and audit of our financial statements from 2022 to 2025, appointed Deloitte Management Consulting (Shanghai) to strengthen our internal controls, and restructured the board of directors, so that independent non-executive directors currently occupy the majority of seats on the board of directors. The above measures are aimed at strengthening corporate governance and internal controls, so that we can resume issuing regular financial reports to shareholders and the broader investor community.

In the second quarter, the business environment for small and micro business owners remained challenging, and financing needs continued to weaken. To this end, we are implementing a prudent management strategy, with the Youke Strategy and AI-enabled refined management as the core. Among them, the Youke strategy transforms the customer structure into a lower risk borrower through refined product design, targeted customer acquisition, and upgraded risk management frameworks; while refined operation enabled by AI further deepens the application of artificial intelligence in segmenting customers and strengthening existing customer relationships. Thanks to these measures, our consumer finance business continued to grow. New consumer finance loans increased 27.6% year over year, driving the total amount of new loans enabled overall to increase 4.6% year over year to RMB 51.1 billion. The quality of our assets has also gradually improved, with the C-M3 migration rate falling to 1.0% and the consumer finance non-performing loan ratio improving to 1.3%, both down from the first quarter.

On the financial side, despite the challenging business environment for small and micro business owners and high credit costs, our net loss in the second quarter narrowed to RMB 82 million, an improvement of 86.2% over the same period last year. We are encouraged by the continuous improvement in operational efficiency. Under the leadership of our new management team, we will continue to focus on prudent and high-quality growth and strive to create long-term value for our shareholders.”