Total income of Lufax Holding 2017-2021

In 2021, the personal financial service provider Lufax holding had a total income of over 62 billion yuan. Since 2017, the company had grown every year and managed to maintain this trajectory despite the outbreak of COVID-19, which heavily impacted the Chinese financial service sector.

Business model evolution

When the company was founded in 2011, its core business model was peer-to-peer lending. Due to China’s restrictive credit market and low-interest rates, this type of financing was very popular among borrowers and lenders alike. However, due to the predatory nature of the industry, the Chinese government implemented strict controls which have almost completely wiped out the industry. As a result, Lufax shifted its focus to becoming a fintech company whose main income sources are credit facilitation and asset management.

Going public

In 2020, backed by Ping An Group, Lufax Holding listed on the New York Stock Exchange. It became China’s first public fintech company, selling shares even before Alibaba’s AntGroup. The IPO raised almost 2.7 billion U.S. dollars which made it the biggest Chinese public offering in the United States in that year.