Lufax Holding Ltd Files 20-F Annual Report

TL;DR

<b>Lufax Holding Ltd has filed its 20-F annual report, outlining financial details, tax implications across jurisdictions, and operational adjustments.</b>

AI Summary

Lufax Holding Ltd (LU) filed a Foreign Annual Report (20-F) with the SEC on April 23, 2024. Lufax Holding Ltd filed its 20-F annual report for the fiscal year ending December 31, 2023. The filing details tax regulations in various jurisdictions including Cayman Islands, BVI, Hong Kong, and Indonesia. It addresses the reclassification of certain cash flows from investing to operating activities. The report notes that payables to external suppliers and trust management fees are within 1 year as of December 31, 2022 and 2023. Foreign exchange losses of RMB877 million were recorded in 2022 due to RMB depreciation against USD.

Why It Matters

For investors and stakeholders tracking Lufax Holding Ltd, this filing contains several important signals. Investors can gain insights into Lufax's tax liabilities and strategies across its global operations, impacting profitability. The reclassification of cash flows provides a clearer picture of the company's operational liquidity and investment activities.

Risk Assessment

Risk Level: medium — Lufax Holding Ltd shows moderate risk based on this filing. The company's financial performance is subject to foreign exchange fluctuations, as evidenced by the RMB877 million loss in 2022 due to RMB depreciation against USD.

Analyst Insight

Monitor Lufax's foreign exchange hedging strategies and their impact on future earnings.

Key Numbers

• 20231231 — Fiscal Year End (Period covered by the 20-F report)
• 20240423 — Filing Date (Date the 20-F report was filed)
• 16.5% — Hong Kong Income Tax Rate (Tax rate for Hong Kong incorporated subsidiaries)
• 22% — Indonesia Income Tax Rate (Income tax rate in Indonesia)
• RMB877 million — Foreign Exchange Losses (2022) (Losses due to RMB depreciation against USD)

Key Players & Entities

• Lufax Holding Ltd (company) — Filer of the 20-F report
• Cayman Islands (location) — Jurisdiction where the company is incorporated
• BVI (location) — Jurisdiction for Group entities
• Hong Kong (location) — Jurisdiction for subsidiaries subject to 16.5% income tax
• Indonesia (location) — Jurisdiction with a 22% income tax rate
• RMB877 million (dollar_amount) — Foreign exchange losses in 2022
• RMB180 million (dollar_amount) — Other losses in 2023

FAQ

Risk Factors

• Foreign Exchange Losses [medium — financial]: The company experienced foreign exchange losses of RMB877 million in 2022 due to the depreciation of RMB against USD.
• Deferred Tax Assets [medium — financial]: Deferred tax assets were not recognized for certain subsidiaries due to the improbability of future taxable profits to utilize deductible temporary differences.

Glossary

Deferred Tax Assets

Tax assets that result from deductible temporary differences and tax loss carryforwards. (Relevant for understanding potential future tax benefits and the company's tax planning.)

Deductible Temporary Differences

Differences between the carrying amount of an asset or liability in the financial statements and its tax base, which will result in taxable amounts in future periods. (Crucial for calculating deferred tax assets and liabilities.)

Key Financial Figures

• $0.00001 — enting two ordinary shares, par value US$0.00001 per share) * LU New York Stock Excha
• $1 — .S. dollars were made at RMB7.0999 to US$1.00, the exchange rate set forth in the
• $1.00 — ederal Reserve Board was RMB7.2403 to US$1.00. Due to rounding, numbers presented t

Filing Documents

• d799202d20f.htm (20-F) — 8782KB
• d799202dex11.htm (EX-1.1) — 273KB
• d799202dex24.htm (EX-2.4) — 182KB
• d799202dex27.htm (EX-2.7) — 93KB
• d799202dex429.htm (EX-4.29) — 271KB
• d799202dex81.htm (EX-8.1) — 6KB
• d799202dex121.htm (EX-12.1) — 10KB
• d799202dex122.htm (EX-12.2) — 10KB
• d799202dex131.htm (EX-13.1) — 4KB
• d799202dex132.htm (EX-13.2) — 4KB
• d799202dex151.htm (EX-15.1) — 2KB
• d799202dex152.htm (EX-15.2) — 5KB
• d799202dex153.htm (EX-15.3) — 4KB
• d799202dex971.htm (EX-97.1) — 31KB
• g799202g00a15.jpg (GRAPHIC) — 61KB
• g799202g00w01.jpg (GRAPHIC) — 63KB
• g799202g00w02.jpg (GRAPHIC) — 68KB
• g799202g00w03.jpg (GRAPHIC) — 25KB
• g799202g00w04.jpg (GRAPHIC) — 28KB
• g799202g01a39.jpg (GRAPHIC) — 61KB
• g799202g0307230042686.jpg (GRAPHIC) — 1KB
• g799202g0414181011148.jpg (GRAPHIC) — 2KB
• g799202g0414181011526.jpg (GRAPHIC) — 3KB
• 0001193125-24-106025.txt (&nbsp;) — 37689KB
• lu-20231231.xsd (EX-101.SCH) — 284KB
• lu-20231231_cal.xml (EX-101.CAL) — 113KB
• lu-20231231_def.xml (EX-101.DEF) — 925KB
• lu-20231231_lab.xml (EX-101.LAB) — 1277KB
• lu-20231231_pre.xml (EX-101.PRE) — 1234KB
• d799202d20f_htm.xml (XML) — 9609KB

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 191 Item 12.

Description of Securities Other than Equity Securities

Description of Securities Other than Equity Securities 198 PART II 203 Item 13. Defaults, Dividend Arrearages and Delinquencies 203 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 203 Item 15.

Controls and Procedures

Controls and Procedures 203 Item 16A. Audit Committee Financial Expert 204 Item 16B. Code of Ethics 204 Item 16C. Principal Accountant Fees and Services 204 Item 16D. Exemptions from the Listing Standards for Audit Committees 205 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 205 Item 16F. Change in Registrant's Certifying Accountant 205 Item 16G. Corporate Governance 205 Item 16H. Mine Safety Disclosure 205 Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 205 Item 16J. Insider Trading Policies 205 Item 16K. Cybersecurity 205 PART III 207 Item 17.

Financial Statements

Financial Statements 207 Item 18.

Financial Statements

Financial Statements 207 Item 19. Exhibits 207

SIGNATURES

SIGNATURES 213 i Table of Contents INTRODUCTION Except where the context otherwise requires and for purposes of this annual report only: "active borrowers" refer to borrowers that have a current outstanding balance with our company as of the period end; "ADSs" refer to our American depositary shares, each representing two ordinary shares; "AI" refers to artificial intelligence; "APR" or "annualized percent rate" refers to the monthly all-in borrowing cost as a percentage of the outstanding balance annualized by a factor of 12, where all-in borrowing cost comprises the actual amount of (i) interest, (ii) insurance premiums or guarantee fees and (iii) retail credit enablement service fees; "China" or the "PRC" refers to the People's Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan; "consolidated affiliated entities" refer to entities in China with which we have contractual arrangements such that we are able to direct the activities of and are considered the primary beneficiary of those entities and we have consolidated their financial results in our consolidated financial statements; "DPD 30+ delinquency rate" refers to the outstanding balance of loans for which any payment is 30 to 179 calendar days past due, divided by the outstanding balance of loans; "DPD 90+ delinquency rate" refers to the outstanding balance of loans for which any payment is 90 to 179 calendar days past due, divided by the outstanding balance of loans; "Hong Kong dollars" or "HK$" refers to the legal currency of Hong Kong; "Hong Kong Listing Rules" refers to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended or supplemented from time to time; "Hong Kong Stock Exchange" refers to The Stock Exchange of Hong Kong Limited; "IFRS" refers to International Financial Reporting Standards as issued by the International Accounting Standards Board; "KYB" refers to know-

View Full Filing

View this 20-F filing on SEC EDGAR