Lufax Holding Ltd (NYSE:LU) Q4 2023 Earnings Call Transcript

One is that we do believe that there are good consumer finance opportunities to work through multiple channels to diversify our product offering into providing more smaller ticket, shorter-term loans that makes us to be more nimble in a dynamic environment, but also providing these capabilities to small business owners as well because small business owners sometimes act in the capacity of their company needs, which we cover under the Puhui business model. And sometimes, they have their individual needs. Of course, we’re looking at these customers from a full credit view, right? But we sometimes find that small business owners, once they have taken a long-term loan, they may still have smaller interim needs. And so we want to be in a position to serve these customers kind of on a longer life cycle with more opportunities to interact with them and through the interaction, creating more data points to understand them and their needs.

So it is a way, consumer finance is a way to diversify our product offering to provide some nimbleness in terms of ticket size to provide some additional data in terms of behavior as well as additional touch points to our existing customers as well as a deeper reach into the market. So, we will continue to have SBO as a core capability. But if you look at the mix between the Puhui model and the consumer finance model, you’ve seen that mix change quite a bit over the last 12 months and that transition to a more balanced development, you’ll probably see continue in the near to medium term.

Operator: Thank you. That concludes our question-and-answer session for today. I’ll now turn the call back over to management for closing remarks.

Xinyan Liu: Thank you. This concludes today’s call. Thank you for joining the conference call. If you have more questions, please do not hesitate to contact the company’s IR team. Thanks, again.

Operator: Thank you. This conference is now concluded. You may now disconnect.