Lu Control (06623) announced interim results with total revenue of 12.489 billion yuan, and the scale of consumer finance loans maintained rapid growth

According to the Zhitong Finance App, Lu Control (06623) announced interim results for the six months ended June 30, 2026, with total revenue of 12.489 billion yuan (RMB, same below); net loss for the period was 694 million yuan.

As of June 30, 2026, the company's loan balance was RMB 167.3 billion, down 13.5% from June 30, 2025. Of these, the company's consumer finance loan balance was RMB 65.4 billion, up 19.9% from June 30, 2025. The total amount of new loans enabled by the company was reduced from RMB 106.1 billion in the first half of 2025 to RMB 99.9 billion in the first half of 2026, of which new consumer finance loans increased from RMB 59.3 billion in the first half of 2025 to RMB 66.2 billion in the first half of 2026.

In the first half of 2026, the total amount of new loans enabled by the company showed a recovery trend. Among them, the scale of consumer finance loans maintained rapid growth, while asset quality improved quarterly. The C-M3 migration rate rose from 1.1% as of December 31, 2025 to 1.2% as of March 31, 2026, and decreased to 1.0% as of June 30, 2026, the DPD 30+ overdue rate increased from 5.6% as of December 31, 2025 to 6.1% as of March 31, 2026, and decreased to 5.8% as of June 30, 2026, while the DPD 90+ overdue rate remained stable at 3.4% and increased as of December 31, 2025 and March 31, 2026 Up to 3.7% as of June 30, 2026. The company continues to implement prudent business strategies. In pursuing future sustainability, the key is to adopt a prudent strategy and continue to refine operations.

In the second half of 2026, the company will continue to promote strategic transformation, focusing on the following measures: (1) establishing a consumer finance franchise, implementing a full-cycle account management system and launching more differentiated competitive products; (2) improving the quality and efficiency of direct sales teams, and developing AI tools “digital segmentation” to enable all-scenario sales; (3) focusing on expanding the two types of customer groups: individual businesses and salaried workers; (4) consolidating the management of existing customers and launching “small wallet products”; (4) consolidating the operation of existing customers and launching “small wallet products” Strengthen customer stickiness and drive medium to large sums Product reuse; and (5) enhance regional differentiated management capabilities and strengthen regional competitiveness.