Lujin announced financial results for the first quarter of 2024.
The Zhitong Finance App learned that Lujin Institute (LU.US) announced financial results for the first quarter of 2024. According to financial reports, the company's total Q1 revenue reached 6.964 billion yuan (RMB, same below).
By business, revenue based on technology platforms was $2,553 million; net interest income was $2,845 million; guaranteed income was $925 million; other revenue was $319 million, up 40.3% year on year; and investment income was 322 million yuan, up 329.2% year on year.
As of March 31, 2024, the balance of loans enabled was $27.2 billion. The cumulative number of borrowers increased from about 19.4 million in the same period last year to about 21.7 million, an increase of 12.4% over the previous year. Additional loans amounted to 48.1 billion yuan.
Zhao Rongyi, Chairman and CEO of Lujin Institute Holdings, said, “In the first quarter, we continued to put prudent management and long-term stability first, and insisted on quality rather than quantity. Early risk indicators improved after completing five major risk reduction and diversification actions (including four combination changes and one business model adjustment). Nevertheless, we remained patient to ensure that this success was sustainable. We are strategically shifting our product portfolio from SBO loans to a more diversified approach, with a greater focus on consumer finance products. At the same time, all new loans added this quarter were issued by consumer finance subsidiaries or backed by guarantee companies according to our 100% guarantee model. This shift will have a positive impact on revenue rates, as it reduces the burden of high CGI premiums, although the upfront provision for such loans means it will take longer for our bottom line to recover. In terms of asset quality, the C-M3 migration rate for inclusive businesses improved from the fourth quarter of 2023 to the first quarter of 2024. Some key operating indicators have been initially improved, and we believe our strategic initiatives have laid a solid foundation for continued success. We will remain vigilant and plan to operate prudently for the foreseeable future.”