You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and the related notes included elsewhere in this annual report. This discussion contains forward-looking statements that involve risks and uncertainties about our business and operations. Our actual results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those we describe under “Item 3. Key Information—D. Risk Factors” and elsewhere in this annual report. A. Operating Results Overview We are a leading financial services enabler for SBOs in China. We are committed to providing SBOs with comprehensive, convenient financial products and services as well as enabling financial institution partners to reach and serve SBOs efficiently. In addition, we provide consumer finance products and services for retail consumers. We had a cumulative total of 20.9 million borrowers as of December 31, 2023, 25.9 million borrowers as of December 31, 2024 and 29.1 million borrowers as of December 31, 2025. The total outstanding balance of loans we enabled was RMB315.4 billion, RMB216.9 billion and RMB183.8 billion (US$26.3 billion) as of December 31, 2023, 2024 and 2025, respectively. Under our core retail credit and enablement model, the borrower is charged fees for the loan that include interest for the lender, guarantee or insurance fees for the guarantor or insurer and enablement service fees for the enabler. (Where the lender bears all the credit risk, there is no separate guarantee or insurance fee.) The aggregate of the fees charged to the borrower in proportion to the outstanding balance of the loan constitutes the borrower’s effective APR. What we earn depends on how the loan is structured. When the lender is a trust that we consolidate, we earn the spread between the aggregate of the fees that are paid by the borrower (including interest, guarantee fees and enablement service fees) and the interest that is paid to the investors in the trust as net interest income using the effective interest rate method. When the lender is a trust that we do not consolidate or the lender is a bank, the lender earns the interest while we earn the enablement service fees as retail credit and enablement service fee income and (if we provide a guarantee) guarantee fees as guarantee income. In each case, our operating net profit would also consider various operating expenses as well as credit impairment losses, to the extent that they would be attributable to the operation of our core retail credit and enablement model. 147 Table of Contents Under our consumer finance business model, we generate net interest income from loans originated by our consumer finance subsidiary. These loans are provided to individual consumers, and the net interest income is derived from the difference between the interest we charge on these loans and the cost of funding associated with them. In addition to our core retail credit and enablement and consumer finance business, we earn other technology platform-based income for service fees generated from distribution of financial institutions’ products, and other income from account management service fee and other services fees. We also earned referral income from platform service for the referral service we provided to bank partners through Lujintong before its cessation of operation in April 2024. Our total income was RMB34.3 billion in 2023, RMB24.5 billion in 2024 and RMB27.1 billion (US$3.9 billion) in 2025. Our profit (loss) before income tax expenses was RMB1.6 billion in 2023, RMB(2.1) billion in 2024 and RMB(0.6) billion (US$(0.1) billion) in 2025. We had net profits (losses) of RMB1.0 billion in 2023 RMB(3.6) billion in 2024 and RMB(1.7) billion (US$(0.2) billion) in 2025. We had a net margin of 2.8% in 2023, (14.7)% in 2024 and (6.3) % in 2025. Factors Affecting Our Results of Operations The Impact of Economic Conditions on Our Business The demand for retail credit enablement in China is dependent upon overall economic conditions. General economic factors, including GDP growth, the interest rate environment and unemployment rates, may affect borrowers’ willingness to seek loans and ability to repay them. The gradual slowing in the growth rate of the Chinese economy in recent years has created headwinds for our own growth. Individuals’ levels of disposable income may affect their creditworthiness and potentially lead to changes in default rates. Our total volume of new loans slightly increased from RMB208.0 billion in 2023 to RMB213.1 billion in 2024 and further increased to RMB214.0 billion in 2025. These factors have also led to an increase in defaults on loans, including loans we have enabled or made. A combination of the growth in the risk-bearing loan balance on our balance sheet and the growth in our off-balance sheet guarantee exposure from our financing guarantee business has caused us to incur more indemnity loss and book more provisions anticipating deteriorating asset quality of the loan portfolios. We are strategically focused on prudent growth, prioritizing quality over quantity in our loan portfolio while growing our consumer finance business. As such, we are focused on attracting higher quality borrowers in more economically resilient regions, optimizing our sales channel structure and productivity, revising our products and pricing, and enhancing our risk management capabilities to protect our business health and resilience. The Effectiveness of Our Credit Risk and Capital Management The end-to-end performance of our risk management system is crucial to the success of our business, in particular as we bear a higher proportion of credit risk on the loans we enable. Risk management empowers us to identify creditworthy customers who have been underserved by traditional financial institutions, offer differentiated products to borrowers with different risks profiles, and improve our overall loan performance. Delinquency rate is a backward looking indictor that reflects asset quality trend during a period in the past. As of December 31, 2023, 2024 and 2025, our DPD 30+ delinquency rate was 6.9%, 4.8% and 5.6%, respectively, and our DPD 90+ delinquency rate was 4.1%, 2.9% and 3.4%, respectively. Flow rate is a forward-looking indicator that estimates the percentage of current loans that will become non-performing at the end of three months. Our flow rate for general unsecured loans was around 1.3% for the year ended December 31, 2023, decrease to 1.0% for the year ended December 31, 2024 and remained flat at 1.0% in 2025. Similarly, our flow rate for secured loans was around 0.6% for the year ended December 31, 2023 before rising to 0.8% for the year ended December 31, 2024 and 1.0% for the year ended December 31, 2025. See “Item 4. Information on the Company-B. Business Overview—How We Enable Our Institutional Partners—Credit Risk Management” for more explanation. 148 Table of Contents To properly control the risk exposure in our consumer finance business, we have prudently managed our guarantee leverage ratio following “Regulations on the Supervision and Administration of Financing Guarantee Companies.” The regulations set forth that the outstanding guarantee liabilities of a financing guarantee company shall not exceed 10 times its net assets, though the upper limit can be raised to 15 times for a financing guarantee company that mainly provides services to small and micro enterprises, the agriculture sector, rural villages and farmers. The guarantee leverage ratio of Ping An Rongyi (Jiangsu) Financing Guarantee Co., Ltd, our subsidiary which provides financing guarantee services, was 1.8×, 3.3× and 3.6× as of December 31, 2023, 2024 and 2025, respectively. We believe we have ample room to further grow our guarantee business by taking on more risks but we will prudently keep the guarantee leverage ratio at an appropriate level. The Evolution of Our Business Model Anticipating the trend in regulatory guidance, we have been increasing the percentage of the risk that we bear on loans that we enable. The percentage of our total outstanding loans with credit risk exposure for our company increased from 39.8% as of December 31, 2023, to 74.5% as of December 31, 2024 and further to 91.4% as of December 31, 2025, including loans we guarantee through our financing guarantee subsidiary and loans we make through our consumer finance subsidiary and our microloan subsidiary. We provide guarantee services through our financing guarantee subsidiary, which has licensed branches in 29 provinces. For loans funded by third parties requiring credit enhancement, we used to guarantee a portion of the risk on each new loan transaction along with our credit enhancement providers. However, in the fourth quarter of 2023, we successfully completed the transformation of our business to a 100% guarantee business model, under which our licensed financing guarantee subsidiary now provides a guarantee for nearly every new loan transaction (excluding certain consumer finance loan products and referral products) without the use of third-party credit enhancement. As of December 31, 2025, 8.6% of financing guarantees for the outstanding balance of loans enabled by us were provided by third-party credit enhancement providers. Loan impairment provisions against the risk exposure on our outstanding loan portfolio continued to increase in the short term and borrowing costs continued to increase due to a decline in customers’ ability to repay, which acted as a drag on our financial performance in 2025. As our credit exposure increased, we recognized more loan impairment provisions against increasing risk exposure due to a decline in customers’ ability to repay, and we recognized more indemnity losses when we fulfilled our guarantee obligations to our funding partners for defaulted loans. Going forward, we expect the volatility of our credit impairment losses and indemnity losses to increase as we increase the volume of new loans we guarantee and as we experience fluctuations in delinquency indicators as a result of deterioration or improvement in borrowers’ repayment ability and macro-economic environment changes. Furthermore, since we assess loan impairment provisions based on expected credit losses on a forward-looking basis, a number of significant assumptions or parameters are also required in applying the accounting requirements for measuring them, and our financial performance may experience more volatility depending on how actual borrower behavior deviates from our expectation. In addition, the evolution of our business model has led to changes in the structure of our total income. The income contribution from guarantee income increased from 12.8% in 2023, to 14.6% in 2024 and further to 20.3% in 2025. Meanwhile, the growth in our consumer finance business together with our increased use of consolidated third-party trust plans has led to growing income contribution from net interest income, which we recognize on loans funded by these sources. The income contribution from net interest income increased from 38.2% in 2023 to 50.2% in 2024 and decreased to 48.6% in 2025. Acquisition of High Quality Customers Through Multiple Channels Our SBO financial services business primarily targets small business owners in China who have access to commercial bank credit, automobile and real estate property and financial assets. We have a robust distribution capability across multiple channels, including full-time direct sales employees, active third-party channel partners, and employees engaged in targeted online and telemarketing campaigns. 149 Table of Contents We strategically adjust our channel mix based on channel costs and effectiveness to enhance our ability to address the needs of the high quality borrowers we target. We have been revising our salesforce to concentrate on a smaller number of higher-quality borrowers and shifting to utilize more of our direct sales force channel for better quality control. We believe our ability to properly and efficiently mobilize our sales channels to acquire high quality borrowers is essential to strengthen the resilience of our business through economic cycles and sustain our long-term growth and profitability. The Mix, Pricing and Effective Tenor of Products and Services We offer products to meet different borrower needs, including general unsecured loans, secured loans and consumer finance loans, with a variety of tenors and sizes. We earn a mix of technology platform-based income, net interest income and guarantee income, depending on the funding and credit enhancement arrangements. As our retail credit enablement service fees are comprised of loan enablement service fees and post-origination service fees, the relatively large ticket sizes and long tenors of the general unsecured loans and secured loans we enable give us a larger and more stable income stream with visibility beyond the current period. Our borrowers’ repayment behaviors and early repayment options affect the effective tenors of the loans we enable. Borrowers’ early repayments of loans reduce the number of months that our retail credit and enablement service fees or interest income can be recognized and thus affect the total amount of our fees and interest income in absolute terms. Borrowers’ decisions whether to make early repayments can be affected by a number of factors such as early repayment fees, interest rate trends and the availability of other financing options in the market. As the fees for our products and services vary, our income and profitability are affected by the amount and mix of our products and services. Collaboration With Diversified Financial Institution Partners Maintaining a healthy collaborative relationship with a diversified set of financial institution partners is critical to our business model. Many funding partners have worked with us for over three years. In 2025, 27.7% of the new loans we enabled were funded directly by banks, and another 11.4% by trust plans representing an even larger number of diverse partners. In 2025, only one funding source accounted for more than 10% of the funding for our outstanding loans. Historically, our ability to enable loans has not been constrained by our funding supply, but our funding supply in the future could be constrained by the commercial dynamics discussed in “—The Evolution of Our Business Model.” In addition, prior to our adoption of our 100% guarantee business model, we collaborated with seven third-party credit insurance companies, including primarily Ping An P&C, to provide credit enhancement for loans whose borrowers met their desired risk profile. The foundation of our loan enablement proposition is a dual KYC-plus-KYB approach. KYC assesses the SBOs’ creditworthiness as individuals, while KYB assesses the cash flow sustainability of their businesses. Sourcing borrowers with low credit risk provides value to third-party funding partners and strengthens our relationships with them. Our mature collection framework and data collected from these efforts also represent an integral part of our value propositions, enhancing our relationship with our funding partners. Operational Efficiency Our operational efficiency and cost structure have a large impact on the results of our business. Our variable costs are primarily comprised of sales and marketing expenses and operation and servicing expenses. Our fixed costs, which are primarily comprised of general and administrative expenses and technology and analytics expenses, benefit significantly from economies of scale. In particular, the application of advanced technology in our credit assessment and loan collection process scales up our capabilities without a proportionate increase in operational expenses. Our fixed costs as a percentage of our total income increased from 11.0% in 2023, to 13.1% in 2024, and decreased to 10.7% in 2025. 150 Table of Contents Regulatory Environment in China The regulatory environment for retail credit enablement in China is developing and evolving, creating both challenges and opportunities that could affect our financial performance. The Chinese government has been putting the pieces in place for a more mature regulatory framework covering all aspects of our business. New regulations may result in both opportunities and challenges for us by weeding out weaker players, triggering consolidation within the industry and increasing compliance risk. We have a proven record of navigating complex regulatory changes over the last several years, as we have comprehensively overhauled our product offerings and business models, and we will continue to make efforts to ensure that we are in compliance with the existing and new laws, regulations and governmental policies relating to our industry. On- and Off-Balance Sheet Treatment of Loans and Risk Exposure We have established diversified funding sources, including banks, trust plans and our own licensed consumer finance subsidiary and microloan subsidiary, to ensure that we have scalable and stable funding for the loans we enable. We help banks to source prospective borrowers and the banks extend loans to select individuals among those prospective borrowers using their own funds. We also work with trust companies to set up trust plans with loans that we enable as the underlying assets. We earn technology platform-based income for the loan enablement and post-origination services we provide to our funding partners and guarantee income for the credit enhancement services we provide. Third-party funding sources supplied a large majority of the funding for our outstanding loans in 2023, 2024 and 2025, with the remainder funded by us through our consumer finance subsidiary or our microloan subsidiary. Those loans that are funded by us are recorded on our balance sheet at net carrying amount, whether or not third parties provide credit enhancement on those loans. Due to the needs of investors in certain trust plans with loans we enabled as the underlying assets, we hold subordinated tranches of the trust plans or put in guarantee deposits. We consolidate the loans under this trust funding model on our balance sheet. In addition, we consolidate trust plans under other circumstances based on control and variable return assessment in accordance with IFRS 10. The arrangement of consolidated and unconsolidated trust plans is quite similar while the variable return could be different, depending on a dynamic mix of commercial factors. With the decrease in investor’s return as a result of decrease in market interest rate and the increase in the proportion of loans on which we bear credit risk, the magnitude of variable return attributable to funding partners and/or credit enhancement providers declines accordingly, while the magnitude of variable return earned by us keeps relatively stable. As a result, more loans enabled with trust plans were consolidated since we were entitled to higher proportion of the variable return. As of December 31, 2023, 2024 and 2025, we consolidated 96.0%, 96.7% and 100%, respectively, of the outstanding balance of loans we enabled with trusts as the funding source. All cash flows directly attributable to these on-balance sheet loans, including the contractual interest income, service fees, guarantee fees, and borrower acquisition expenses, are recorded as net interest income using the effective interest method in accordance with IFRS 9. As a result, the net carrying value of the loans we enabled plus the interest receivables on those loans amounted to RMB129.7 billion as of December 31, 2023, RMB111.5 billion as of December 31, 2024 and RMB102.3 billion (US$14.6 billion) as of December 31, 2025, which was recorded as loans to customers on our balance sheet. As of December 31, 2023, 2024 and 2025, we had credit risk exposure to 39.8%, 74.5% and 91.4%, respectively, of the outstanding balance of the loans we enabled. The credit risk exposure between our third-party external partners and ourselves is on a pari passu basis, meaning that we share all losses in proportion to our respective commitments. The parties that provide credit enhancement will indemnify the lender when the loans that we enabled are 80 days past due. We need to record losses only to the extent of our exposed credit risk based on our guarantee products. For those loans that are less than 90 days past due, we will apply our estimation on the probability of default and loss given default under the expected credit loss impairment model to reach an amount of expected impairment losses which is charged to our income statement under impairment losses. If the loans are 90 days past due, we record our losses based on our best estimate of recoverable amount. Key Operating Metrics We regularly review a number of operating metrics to evaluate our business, measure our performance, identify trends, formulate financial projections and make strategic decisions. 151 Table of Contents As of or For the Year Ended December 31, 2023 2024 2025 Number of active borrowers (thousands) 3,924 5,038 3,972 Number of active funding partners 85 85 87 (RMB in billions except where otherwise indicated) Outstanding balance of loans enabled 315.4 216.9 183.8 General unsecured loans 207.9 124.8 93.9 Secured loans 70.4 42.0 30.4 Consumer finance loans 37.1 50.1 59.6 Percentage with risk exposure for our company 39.8 % 74.5 % 91.4 % Off-balance sheet 180.1 102.5 76.4 Without credit risk exposure 125.2 34.4 8.9 With credit risk exposure 54.9 68.0 67.5 On-balance sheet 135.3 114.4 107.5 Without credit risk exposure 64.6 20.9 6.9 With credit risk exposure 70.7 93.5 100.5 Volume of new loans enabled 208.0 213.1 214.0 Off-balance sheet 81.5 65.8 59.3 Without credit risk exposure 42.9 0.4 0.9 With credit risk exposure 38.6 65.4 58.4 On-balance sheet 126.5 147.4 154.7 Without credit risk exposure 35.3 14.5 17.8 With credit risk exposure 91.2 132.9 136.9 Financing guarantee subsidiary leverage ratio (×)(1) 1.8 × 3.3 × 3.6 × Net assets of financing guarantee subsidiary 44.6 32.9 29.5 Net assets of Lufax Holding (consolidated) 92.5 83.6 82.0 30 day+ delinquency rate(2) (%) 6.9 % 4.8 % 5.6 % 90 day+ delinquency rate(2) (%) 4.1 % 2.9 % 3.4 % Cost-to-income ratio(3) (%) 57.9 % 55.7 % 39.8 % Credit impairment losses 12.7 12.6 16.6 Notes: (1) Calculated in accordance with “Supervision and Administration of Financing Guarantee Companies.” The leverage ratio of the financing guarantee subsidiary is calculated as the outstanding guarantee liabilities of the financing guarantee company divided by its net assets. (2) Excluding consumer finance business, referral products and loans issued by the Ping An Digital Bank. (3) Calculated as the sum of sales and marketing expenses, general and administrative expenses, operation and servicing expenses, and technology and analytics expenses divided by total income. Key Components of Our Results of Operations Total Income The proportion of our total income that constitutes technology platform-based income has declined from 44.7% in 2023 to 20.6% in 2025 as our net interest income has increased from 38.2% to 48.6% and our guarantee income has increased from 12.8% to 20.3% over the same period of time. This evolution in the mix of our total income is driven primarily by changes in our business model as we have gradually taken on more credit risk, changes in funding mix and growth in our consumer finance business. 152 Table of Contents Our on-balance sheet loans include loans that we fund ourselves directly through our financial institution subsidiaries, including Ping An Consumer Finance Co., Ltd., a microloan lending subsidiary, and the Ping An Digital Bank, and loans that are funded by consolidated trust plans and generate interest income recognized under IFRS 9. Our off-balance sheet loans generate loan enablement service fees and post-origination service fees recognized under IFRS 15 and guarantee income to the extent that we supply part of the credit enhancement service. Although the underlying business arrangements might be similar, the application of IFRS 15 or IFRS 9 can have an impact on the timing and amount of fee or interest income recognition. Early repayment of loans by borrowers will reduce the number of months that the fees or interest income are being recognized and thus affect the total amount of fees or interest income in absolute terms. The following table sets forth the breakdown of our total income, both in absolute amounts and as percentages of our total income, for the years indicated: For the Year Ended December 31, 2023 2024 2025 (RMB) (%) (RMB) (%) (RMB) (US$) (%) (restated) (in millions, except percentages) Technology platform-based income 15,319 44.7 8,161 33.3 5,588 799 20.6 Net interest income 13,112 38.2 12,311 50.2 13,194 1,887 48.6 Guarantee income 4,392 12.8 3,580 14.6 5,496 786 20.3 Other income 1,391 4.1 1,508 6.2 1,195 171 4.4 Investment income/(loss) 80 0.2 (1,046 ) (4.3 ) 1,655 237 6.1 Share of net profit/(loss) of investments accounted for using the equity method (5 ) (0.0 ) (1 ) (0.0 ) — — — Total income 34,289 100.0 24,513 100.0 27,128 3,879 100.0 Technology Platform-based Income Technology platform-based income includes retail credit and enablement service fees and other technology platform-based income. Retail credit and enablement service fees include loan enablement services and post-origination services, which are considered to be two distinctive services under one product provided to our borrowers and funding partners, as well as referral income from platform service, which includes income from the referral service we used to provide to bank partners through Lujintong. Loan enablement services include credit assessment of the borrower, enabling loans from the funding partner to the borrower and providing technical assistance to the borrower and the funding partner. Post-origination services include repayment reminders, payment processing, and collection services. Lujintong was designed to help banks with strong risk capabilities acquire borrowers directly through dispersed third-party agents nation-wide. Under this model, we earned referral fees based on transaction volume and did not participate in credit risk assessment and sharing. As a result, we do not count loans enabled through Lujintong as part of our volume of new loans enabled or our total outstanding loans. We downscaled the operations of Lujintong in 2023 and ceased its operation in April 2024. Other technology platform-based income includes service fees generated from distribution of financial institutions’ products including asset management plans, bank products, mutual funds, trust plans and other products. 153 Table of Contents The following table sets forth the breakdown of our technology platform-based income for the years indicated: For the Year Ended December 31, 2023 2024 2025 (RMB) (%) (RMB) (%) (RMB) (%) (restated) (in millions, except percentages) Retail credit and enablement service fees Loan enablement service fees 979 6.4 1,572 19.3 1,291 23.1 Post-origination service fees 13,729 89.6 6,481 79.4 4,212 75.4 Referral income from platform service 426 2.8 14 0.2 0 0.0 Retail credit and enablement service fees 15,134 98.8 8,066 98.8 5,503 98.5 Other technology platform-based income 185 1.2 95 1.2 85 1.5 Total technology platform-based income 15,319 100.0 8,161 100.0 5,588 100.0 We do not provide loan enablement services or post-origination services on a standalone basis. Loan enablement service fees and post-origination service fees are recognized upon completion of different performance obligations, and they include the service fees for both the off-balance sheet loans newly enabled during the current financial year and those had been enabled in previous years. The following table sets forth the sum of the loan enablement service fees and post-origination service fees that is expected to arise from the remaining performance of long-term contracts for our financial enablement services as of December 31, 2025. Upon the fulfillment of the obligations under service contracts, the fees are expected to be recognized in the respective periods in the amounts as described in the table below given the best estimated loan repayment time. The actual amount that we recognize is subject to the actual repayment behavior of borrowers, which may differ from the estimation in our model. If early repayment increases, the total service fee expected to be paid by the borrowers decreases, thus decreasing the income we recognize for each of the loans enabled, and the reverse is true if early repayment decreases. Although the estimate of loan repayment time represents our best estimate based on the information that is currently available to us, there is no assurance that the actual loan repayment time will not deviate from our best estimate, which in turn would affect the income in the respective expected periods of recognition. Amount Percentage (RMB in millions) (%) Expected period of recognition 2026 2,586 53.0 2027 1,775 36.4 2028 517 10.6 Total 4,878 100.0 When predicting the repayment behavior of borrowers and effective tenor of loans, historical early repayment data is the key indicator of future trends. On a regular basis, we review the actual early repayments that have occurred and adjust the early repayment assumption to update our best estimate of the effective tenor for outstanding loans. 154 Table of Contents The table below sets forth the estimated effective tenor of loans that we do not consolidate on our balance sheet, after considering the actual early repayments that have occurred and expected future early repayments, as of December 31, 2023, 2024 and 2025. As of December 31, 2023 2024 2025 (months) Estimated Effective Tenor for Off-Balance Sheet Loans General unsecured loans 20.46 21.70 21.61 Secured loans 15.50 15.41 17.01 The table below sets forth the impact of changes in estimated effective tenor on the sum of loan enablement service fees and post-origination service fees of RMB4,878 million expected as of December 31, 2025 to be recognized in the remaining period of the loans when the remaining performance obligations are satisfied. General unsecured loans Secured loans Total (RMB millions) Change in estimated effective tenor -1 month 111 41 152 +1 month 114 43 157 Net Interest Income Net interest income consists of net interest income from consolidated trusts, microloans, consumer finance loans and Ping An Digital Bank. In late 2018, we began to introduce a third-party funded trust plan model under which most though not all of the trust plans required consolidation under IFRS 10. Under IFRS 10, we consolidate those trust plans over which we have control and from which we receive variable returns which are affected by our control over these trust plans. Consequently, we recognize net interest income based on the cash flows directly attributable to loans funded by these consolidated trust plans using the effective interest rate method. Hence, borrower acquisition expenses from such third-party funded trust plans are recognized as offsetting net interest income under IFRS 9. See “Item 4. Information on the Company—B. Business Overview—How We Enable Our Institutional Partners—Our Funding Partners—Trusts.” In May 2020, we also started to serve consumers under our licensed consumer finance subsidiary. As a result, the net carrying value of the loans we originated plus the interest receivables on those loans amounted are categorized as on-balance sheet outstanding loans and recorded as loans to customers on our balance sheet. See “—On- and Off-Balance Sheet Treatment of Loans and Risk Exposure.” The following table sets forth the breakdown of our net interest income for the years indicated. For the Year Ended December 31, 2023 2024 2025 (restated) (RMB) (%) (RMB) (%) (RMB) (%) (in millions, except percentages) Loans originated by consolidated trust plans: Interest income 15,401 117.5 9,634 78.3 7,112 53.9 Interest expenses (6,576 ) (50.2 ) (2,784 ) (22.6 ) (1,621 ) (12.3 ) Net interest income from loans originated by consolidated trust plans 8,825 67.3 6,850 55.6 5,490 41.6 Loans originated by financial institutions: Interest income 5,008 38.2 6,528 53.0 8,949 67.8 Interest expenses (720 ) (5.5 ) (1,066 ) (8.7 ) (1,245 ) (9.4 ) Net interest income from loans originated by financial institutions 4,287 32.7 5,462 44.4 7,704 58.4 Total net interest income 13,112 100.0 12,311 100.0 13,194 100.0 155 Table of Contents Guarantee Income Whether under our bank-funding model or trust-funding model, 8.6% of financing guarantees for the outstanding balance of loans enabled by us were provided by third-party credit enhancement providers as of December 31, 2025. We earn guarantee income as a return to our credit risk exposure to the extent that we provide credit enhancement service for loans we enable. We do not provide guarantees as a stand-alone service for loans that we did not enable. Guarantee income consists of the fees we charge to our borrowers for the guarantee services we provide on loan products. As we have increased the proportion of the loans we enable for which we provide credit enhancement, guarantee income has accounted for an increasing though still relatively low proportion of our total income, from 12.8% in 2023 to 14.6% in 2024 and 20.3% in 2025. Other Income Other income includes account management service fees and other services fees. Account management service fees represent service fees charged to credit enhancement providers for reminder services provided to them for loans enabled by us that are covered by their credit enhancement services. Other income accounted for 4.1% of our total income in 2023, 6.2% of our total income in 2024 and 4.4% of our total income in 2025. Investment Income/(loss) Investment income/(loss) primarily consists of interest income and realized and unrealized gains and losses on financial assets and financial investments, which mainly consist of mutual funds, trust plans, structured deposits, bank wealth management products, debt securities and other debt investments. Investment income accounted for 0.2% of our total income in 2023, (4.3)% of our total income in 2024 and 6.1% of our total income in 2025. 156 Table of Contents Total Expenses Our expenses include sales and marketing expenses, general and administrative expenses, operation and servicing expenses, technology and analytics expenses, and credit impairment costs, among others. The following table sets forth the breakdown of our expenses, both in absolute amounts and as percentages of our total income, for the years indicated: For the Year Ended December 31, 2023 2024 2025 (restated) (RMB) (%) (RMB) (%) (RMB) (US$) (%) (in millions, except percentages) Sales and marketing expenses 9,889 30.2 5,406 20.3 4,036 577 14.6 General and administrative expenses 2,350 7.2 2,024 7.6 1,922 275 6.9 Operation and servicing expenses 6,193 18.9 5,034 18.9 3,837 549 13.8 Technology and analytics expenses 1,406 4.3 1,178 4.4 991 142 3.6 Credit impairment losses 12,696 38.8 12,613 47.4 16,558 2,368 59.8 Asset impairment losses 31 0.1 — — 28 4 0.1 Finance costs 349 1.1 85 0.3 258 37 0.9 Other (gains)/losses – net (213 ) (0.7 ) 253 1.0 74 11 0.3 Total expenses 32,700 100.0 26,592 100.0 27,705 3,962 100.0 Sales and Marketing Expenses Sales and marketing expenses consist primarily of borrower acquisition expenses, investor acquisition and retention expenses, general sales and marketing expenses and referral expenses from platform service. Our borrower acquisition expenses mainly represent the expenses we incur for off-balance sheet loan enablement as compensation to our sales employees and third-party channels. Borrower acquisition expenses are capitalized and amortized on a systematic basis consistent with revenue recognition. For our on-balance sheet loans, as part of the cash flows directly attributable to the loans, the corresponding expenses were reflected in net interest income rather than in borrower acquisition expenses, in accordance with IFRS 9. The following table sets forth the breakdown of our borrower acquisition costs, both in absolute amounts and percentages of total borrower acquisition costs, for the years indicated: For the Year Ended December 31, 2023 2024 2025 (restated) (RMB) (%) (RMB) (%) (RMB) (%) (in millions, except percentages) Direct sales 2,593 51.6 1,624 59.2 1,029 68.4 Channel partners 2,135 42.4 982 35.8 408 27.1 Online and telemarketing 302 6.0 139 5.0 68 4.5 Total borrower acquisition expenses 5,031 100.0 2,746 100.0 1,505 100.0 The borrower acquisition costs are all related to the off-balance sheet loans. For our on-balance sheet loans, the corresponding expenses are reflected in net interest income rather than in borrower acquisition expenses, in accordance with IFRS 9. Our investor acquisition and retention expenses mainly represent the costs incurred to acquire and retain investors. These included primarily expenses for our member referral channel and our online direct marketing channel. The expenses for our online direct marketing channel consist primarily of incentives paid for new investor referrals, coupons, and online marketing expenses. Our general sales and marketing expenses mainly represent payroll and related expenses for personnel engaged in marketing, brand promotion costs, business development costs and other marketing and advertising costs. 157 Table of Contents Referral expenses from platform service are related to Lujintong. The following table sets forth the breakdown of our sales and marketing expenses, both in absolute amounts and as percentages of our total sales and marketing expenses, for the years indicated: For the Year Ended December 31, 2023 2024 2025 (restated) (RMB) (%) (RMB) (%) (RMB) (%) (in millions, except percentages) Borrower acquisition expenses 5,031 50.9 2,746 50.8 1,505 37.3 General sales and marketing expenses 4,399 44.5 2,626 48.6 2,531 62.7 Investor acquisition and retention expenses 24 0.2 35 0.6 — — Referral expenses from platform service 435 4.4 — — — — Total sales and marketing expenses 9,889 100.0 5,406 100.0 4,036 100.0 General and Administrative Expenses General and administrative expenses consist primarily of employee benefit expenses and office rentals that are not included in sales and marketing, operation and servicing, or technology and analytics expenses, tax surcharges, consulting service fees, business entertainment costs and other expenses. Operation and Servicing Expenses Operation and servicing expenses consist primarily of (i) platform operation expenses, which mainly represent the expenses to external payment networks and partner banks for processing transactions, (ii) loan servicing expenses that are associated with enabling and servicing loans, which mainly represent the expenses related to credit assessment, customer and system support, payment processing services and collection, (iii) the cost of operating consolidated trust plans and (iv) salaries and benefits for personnel associated operation and servicing. Technology and Analytics Expenses Technology and analytics expenses consist primarily of the expenses with respect to research and development expenses and maintenance expenses related to our technology systems, technology service fees, as well as depreciation and salaries and benefits for IT personnel. Impairment Losses Under IFRS 9, we use an expected loss model to determine and recognize impairments, which were recorded within credit impairment losses. The following table sets forth credit and asset impairment losses for the years indicated: For the Year Ended December 31, 2023 2024 2025 (restated) (RMB in millions) Credit impairment losses 12,696 12,613 16,558 Asset impairment losses 31 — 28 Total 12,727 12,613 16,587 158 Table of Contents The following table sets forth the key components of impairment losses for the years indicated: For the Year Ended December 31, 2023 2024 2025 (restated) (RMB in millions) Loan-related(1) 12,728 12,366 16,544 Investment-related(2) (27 ) 247 (1 ) Others(3) 26 — 43 Total 12,727 12,613 16,587 Notes: (1) Loan-related impairment losses consist of actual and expected losses from loans to customers, accounts and other receivables and contract assets related to our retail credit and enablement business and guarantee contracts. (2) Investment-related impairment losses consist of losses from financial assets at amortized cost. (3) Other impairment losses primarily consist of losses from accounts and other receivables related to wealth management business, goodwill and intangible assets. Impairment losses decreased by 0.9% from RMB12.7 billion in 2023 to RMB12.6 billion in 2024, primarily due to the increase in provision of loans and receivables as a result of the increased risk-bear loan balance, partially offset by the decrease of actual losses. Impairment losses increased by 31.5% from RMB12.6 billion in 2024 to RMB16.6 billion in 2025, primarily due to the increase in the actual losses and provision of loans and receivables as a result of the increased risk-bearing loan balance. Finance Costs Finance cost primarily consists of the interest expenses in connection with our convertible promissory note issued in October 2015 for acquiring our retail credit and enablement business, and the interest expenses of our bank borrowings for general corporate operations that are not related to our retail credit and enablement business. Taxation Cayman Islands We are incorporated as an exempted company in the Cayman Islands. The Cayman Islands currently have no income, corporation or capital gains tax. Hong Kong Our subsidiaries incorporated in Hong Kong are subject to Hong Kong profit tax at a rate of 8.25% on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits over that amount. Hong Kong does not impose a withholding tax on dividends. China Generally, our subsidiaries and consolidated affiliated entities incorporated in China are subject to enterprise income tax on their worldwide taxable income as determined under PRC tax laws and accounting standards at a rate of 25%. We are subject to value added tax at rates of 3% or 6% on the services we provide to borrowers and investors, less any deductible value added tax we have already paid or borne. We are also subject to surcharges on value added tax payments in accordance with PRC law. 159 Table of Contents Dividends paid by our wholly foreign-owned subsidiary in China to our intermediary holding company in Hong Kong will be subject to a withholding tax rate of 10%, unless the Hong Kong entity satisfies all the requirements under the Arrangement between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income and Capital. If our Hong Kong subsidiary finds itself to have satisfied all the requirements under the tax arrangement, the dividends paid to the Hong Kong subsidiary would be subject to withholding tax at the standard rate of 5%, provided that the corresponding documentations are kept for future regulatory inspection. If our holding company in the Cayman Islands or any of our subsidiaries outside of China were deemed to be a “resident enterprise” under the PRC Enterprise Income Tax Law, it would be subject to enterprise income tax on its worldwide income at a rate of 25%. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders or ADS holders.” Income Tax Expenses For the years ended December 31, 2023, 2024 and 2025, our income tax expenses were RMB0.6 billion, RMB1.5 billion and RMB1.1 billion (US$0.2 billion), respectively. Our effective tax rate was 40.0%, (73.4%) and (196.3%) for 2023, 2024 and 2025, respectively. In 2023, our effective tax rate was higher than the PRC enterprise income tax rate of 25% primarily due to the reversal of deferred tax assets recognized in prior years. In 2024, the effective tax rate was higher than the PRC enterprise income tax rate of 25%, mainly attributable to increasing overseas dividend withholding tax and the reversal of deferred tax assets recognized in prior years, and is negative as we recorded a loss before income tax. The effective tax rate for the year ended 2025 was negative, primarily due to an increase in overseas dividend withholding tax and overseas non-deductible losses, combined with a loss before tax in the same period. Results of Operations The following table sets forth a summary of our consolidated results of operations for the years indicated, both in absolute amounts and as percentages of our total income. This information should be read together with our consolidated financial statements and related notes included elsewhere in this annual report. The operating results in any year are not necessarily indicative of the results that may be expected for any future year. For the Year Ended December 31, 2023 2024 2025 (restated) (RMB) (RMB) (RMB) (US$) (in millions) Technology platform-based income Retail credit and enablement service fees Loan enablement service fees 979 1,572 1,291 185 Post-origination service fees 13,729 6,481 4,212 602 Referral income from platform service 426 14 0 0 Retail credit and enablement service fees 15,134 8,066 5,503 787 Other technology platform-based income 185 95 85 12 Total technology platform-based income 15,319 8,161 5,588 799 Net interest income 13,112 12,311 13,194 1,887 Guarantee income 4,392 3,580 5,496 786 Other income 1,391 1,508 1,195 171 Investment income/(loss) 80 (1,046 ) 1,655 237 Share of net losses of investments accounted for using the equity method (5 ) (1 ) — — Total income 34,289 24,513 27,128 3,879 160 Table of Contents For the Year Ended December 31, 2023 2024 2025 (restated) (RMB) (RMB) (RMB) (US$) (in millions) Sales and marketing expenses: Borrower acquisition expenses (5,031 ) (2,746 ) (1,505 ) (215 ) Investor acquisition and retention expenses (24 ) (35 ) 0 0 General sales and marketing expenses (4,399 ) (2,626 ) (2,531 ) (361 ) Referral expenses from platform service (435 ) — — — Sales and marketing expenses (9,889 ) (5,406 ) (4,036 ) (577 ) General and administrative expenses (2,350 ) (2,024 ) (1,922 ) (275 ) Operation and servicing expenses (6,193 ) (5,034 ) (3,837 ) (549 ) Technology and analytics expenses (1,406 ) (1,178 ) (991 ) (142 ) Credit impairment losses (12,696 ) (12,613 ) (16,558 ) (2,368 ) Asset impairment losses (31 ) — (28 ) (4 ) Finance costs (349 ) (85 ) (258 ) (37 ) Other gains/(losses) – net 213 (253 ) (74 ) (11 ) Total expenses (32,700 ) (26,592 ) (27,705 ) (3,962 ) Profit/(loss) before income tax expenses 1,588 (2,079 ) (578 ) (83 ) Less: Income tax expenses (635 ) (1,525 ) (1,134 ) (162 ) Net profit/(loss) attributable to: Owners of our company 810 (3,871 ) (2,098 ) (300 ) Non-controlling interests 143 267 386 55 953 (3,604 ) (1,712 ) (245 ) Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Technology Platform-based Income Our technology platform-based income decreased by 31.5% from RMB8.2 billion in 2024 to RMB5.6 billion (US$0.8 billion) in 2025. This decrease was primarily due to a decrease of 31.8% in retail credit and enablement service fees from RMB8.1 billion in 2024 to RMB5.5 billion (US$0.8 billion) in 2025 and a decrease of 10.2% in other technology platform-based income from RMB95.0 million in 2024 to RMB85.0 million (US$12.1 million) in 2025. The decrease of 31.8% in retail credit and enablement service fees was mainly due to a decrease of 35.0% in post-origination service fees from RMB6.5 billion in 2024 to RMB4.2 billion (US$0.6 billion) in 2025 and a decrease of 17.9% in loan enablement service fees from RMB1.6 billion in 2024 to RMB1.3 billion in 2025, which were primarily due to a decrease in new loan sales and the balance of off-balance sheet loans which are funded by banks and by unconsolidated trust plans, as well as a decrease of 100.0% in referral income from platform services from RMB13.8 million in 2024 to RMB0.1 million (US$0.0 million) in 2025, primarily due to the cessation of Lujintong operations in April 2024. 161 Table of Contents Net Interest Income Our net interest income increased by 7.2% from RMB12.3 billion in 2024 to RMB13.2 billion (US$1.9 billion) in 2025. Consolidated Trust Plans Our net interest income from consolidated trust plans decreased by 19.8% from RMB6.8 billion in 2024 to RMB5.5 billion (US$0.8 billion) in 2025. Interest income from consolidated trust plans decreased by 26.2% from RMB9.6 billion in 2024 to RMB7.1 billion (US$1.0 billion) in 2025, and interest expenses decreased by 41.8% from RMB2.8 billion in 2024 to RMB1.6 billion (US$0.2 billion) in 2025, in both cases primarily due to the decrease in our average balance of loans originated by consolidated trust plans. Interest income represents interest income receivable by loans funded by these trust plans while interest expenses represent interest payable by these consolidated trust plans to their investors. Financial Institutions (Microloans, Consumer Finance and Ping An Digital Bank) Our net interest income from Financial institutions increased by 41.1% from RMB5.5 billion in 2024 to RMB7.7 billion (US$1.1 billion) in 2025. Interest income from Financial institutions increased by 37.1% from RMB6.5 billion in 2024 to RMB8.9 billion (US$1.3 billion) in 2025. Interest expense from Financial institutions increased by 16.8% from RMB1.1 billion in 2024 to RMB1.2 billion in 2025. The increase in interest income from Financial institutions was primarily due to the expansion of our consumer finance & microloan lending business. Guarantee Income Our guarantee income increased by 53.5% from RMB3.6 billion in 2024 to RMB5.5 billion (US$0.8 billion) in 2025. This increase was primarily attributable to an increase in the average off-balance risk-bearing loan balance. Investment Income We recorded an investment loss of RMB1.0 billion in 2024 and an investment income of RMB1.7 billion (US$0.2 billion) in 2025, mainly due to combined impact of changes in the valuations of assets and a gain we recognized from the loss sharing agreement we entered with the “Affiliate, as that term is defined in “Item 4. Information on the Company—History and Development of the Company—Recent Developments.” Other Income Our other income decreased by 20.8% from RMB1.5 billion in 2024 to RMB1.2 billion (US$0.2 billion) in 2025. This decrease was primarily due to a decrease in account management fees driven by decreased collections in 2025. Sales and Marketing Expenses Our sales and marketing expenses decreased by 25.3% from RMB5.4 billion in 2024 to RMB4.0 billion (US$0.6 billion) in 2025, mainly due to a decrease in new sales of off-balance loan and optimization of staff cost. Borrower Acquisition Expenses Our borrower acquisition expenses decreased by 45.2% from RMB2.7 billion in 2024 to RMB1.5 billion (US$0.2 billion) in 2025. Our borrower acquisition expenses primarily represent the expenses we incur as compensation for new loans we enabled that generated technology platform-based income, both for loans enabled in 2025 and for loans enabled in prior years whose remaining balance and tenor of obligations had not lapsed. The decrease in borrower acquisition expenses was primarily due to a decrease in new loan sales and outstanding balance. Investor Acquisition and Retention Expenses Our investor acquisition and retention expenses decreased to nil in 2025 from RMB34.8 million in 2024 due to the winding down of wealth management business and cessation of its new sales. 162 Table of Contents General Sales and Marketing Expenses Our general sales and marketing expenses decreased by 3.6% from RMB2.6 billion in 2024 to RMB2.5 billion (US$0.4 billion) in 2025. This decrease was primarily due to the decrease in staff costs for sales and marketing personnel. Referral Expenses From Platform Service Our referral expenses from platform service was nil and nil in 2024 and 2025, respectively. General and Administrative Expenses Our general and administrative expenses decreased by 5.0% from RMB2.0 billion in 2024 to RMB1.9 billion (US$0.3 billion) in 2025. This decrease was primarily due to our expense control measures. Operation and Servicing Expenses Our operation and servicing expenses decreased by 23.8% from RMB5.0 billion in 2024 to RMB3.8 billion (US$0.5 billion) in 2025, primarily due to a decrease in loan-related operating expenses, our expense control measures and the decrease in the loan balance, partially offset by the increased resources we invested in collection services. Technology and Analytics Expenses Our technology and analytics expenses decreased by 15.9% from RMB1.2 billion in 2024 to RMB1.0 billion (US$0.1 billion) in 2025. This decrease was primarily due to the expense control measures we adopted. Impairment Losses Our impairment losses, including credit impairment losses and asset impairment losses, increased by 31.6% from RMB12.6 billion in 2024 to RMB16.6 billion (US$2.4 billion) in 2025. Credit impairment losses increased by 31.3% from RMB12.6 billion for the year ended December 31, 2024 to RMB16.6 billion for the year ended December 31, 2025, primarily due to the increase of actual losses, and provision of loans and receivables as a result of the increased risk-bearing loan balance. Asset impairment was nil in 2024 and a loss of RMB28.3 million in 2025, This increase was primarily due to the impairment of intangible assets of microloans in 2025. Finance Costs Our finance costs increased by 204.6% from RMB84.8 million in 2024 to RMB258.3 million (US$36.9 million) in 2025, primarily due to the decrease in interest income from deposits. Other gains/(losses) – net We recognized other loss – net of RMB252.6 million in 2024, while we recognized other loss – net of RMB74.1 million (US$10.6 million) in 2025. The change was primarily due to the decrease of foreign exchange losses we recognized in 2025. Income Tax Expenses Our income tax expenses decreased by 25.6% from RMB1.5 billion for the year ended December 31, 2024 to RMB1.1 billion (US$162.2 million) for the year ended December 31, 2025 primarily due to the decrease in overseas dividend withholding tax. 163 Table of Contents Net Profits/(Losses) As a result of the above, we recorded a net loss of RMB3.6 billion in 2024 and a net loss of RMB1.7 billion (US$0.3 billion) in 2025. Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Technology Platform-based Income Our technology platform-based income decreased by 46.7% from RMB15.3 billion in 2023 to RMB8.2 billion in 2024. This decrease was primarily due to a decrease of 46.7% in retail credit and enablement service fees from RMB15.1 billion in 2023 to RMB8.1 billion in 2024 and a decrease of 48.7% in other technology platform-based income from RMB0.2 billion in 2023 to RMB0.1 billion in 2024. The decrease of 46.7% in retail credit and enablement service fees was mainly due to a decrease of 52.8% in post-origination service fees from RMB13.7 billion in 2023 to RMB6.5 billion in 2024, primarily due to a decrease in the balance of off-balance sheet loans, as well as a decrease of 96.8% in referral income from platform services from RMB425.9 million in 2023 to RMB13.8 million in 2024, primarily due to the cessation of Lujintong operations in April 2024, which was partially offset by a 60.6% increase from RMB979.0 million in 2023 to RMB1.6 billion in loan enablement services fees in 2024. Net Interest Income Our net interest income decreased by 6.1% from RMB13.1 billion in 2023 to RMB12.3 billion (US$1.7 billion) in 2024. Consolidated Trust Plans Our net interest income from consolidated trust plans decreased by 22.4% from RMB8.8 billion in 2023 to RMB6.8 billion in 2024. Interest income from consolidated trust plans decreased by 37.4% from RMB15.4 billion in 2023 to RMB9.6 billion in 2024, and interest expenses decreased by 57.7% from RMB6.6 billion in 2023 to RMB2.8 billion in 2024, in both cases primarily due to the decrease in our average balance of loans originated by consolidated trust plans in 2024. Interest income represents interest income receivable by loans funded by these trust plans while interest expenses represent interest payable by these consolidated trust plans to their investors. Microloans and Consumer Finance Our net interest income from microloans and consumer finance increased by 27.4% from RMB4.3 billion in 2023 to RMB5.5 billion in 2024. Interest income from microloans and consumer finance increased by 30.4% from RMB5.0 billion in 2023 to RMB6.5 billion in 2024, primarily due to the expansion of our consumer finance business. Interest expense from microloans and consumer finance remained stable at RMB1.1 billion in 2024, compared to RMB0.7 billion in 2023. Guarantee Income Our guarantee income decreased by 18.5% from RMB4.4 billion in 2023 to RMB3.6 billion in 2024. This decrease was primarily due to a decrease in the amount of off-balance loans guaranteed by us and a lower average fee rate. Investment Income/(loss) We recorded an investment income of RMB80 million in 2023 and an investment loss of RMB1.0 billion in 2024, mainly due to increased losses associated with certain investment assets. Other Income Our other income increased by 8.4% from RMB1.4 billion in 2023 to RMB1.5 billion in 2024. This increase was primarily due to an increase in account management fees driven by increased collections in 2024, partially offset by a decrease in post-loan account management fees and collateral registration income from external insurance companies. 164 Table of Contents Sales and Marketing Expenses Our sales and marketing expenses decreased by 45.3% from RMB9.9 billion in 2023 to RMB5.4 billion in 2024, mainly due to a decrease in new sales and optimization of staff cost. Borrower Acquisition Expenses Our borrower acquisition expenses decreased by 45.4% from RMB5.0 billion in 2023 to RMB2.7 billion in 2024. Our borrower acquisition expenses primarily represent the expenses we incur as compensation for new loans we enabled that generated technology platform-based income, both for loans enabled in 2024 and for loans enabled in prior years whose remaining balance and tenor of obligations had not lapsed. The decrease in borrower acquisition expenses was primarily due to a decrease in new loan sales. Investor Acquisition and Retention Expenses Our investor acquisition and retention expenses increased by 44.6% from RMB24.0 million in 2023 to RMB34.8 million in 2024. General Sales and Marketing Expenses Our general sales and marketing expenses decreased by 40.3% from RMB4.4 billion in 2023 to RMB2.6 billion in 2024. This decrease was primarily due to the decrease in staff costs for sales and marketing personnel. Referral Expenses From Platform Service Our referral expenses from platform service decreased by 100% from RMB435.1 million in 2023 to RMB0.0 million in 2024. This decrease was primarily due to the downsize of Lujintong operations in 2023 and the further cessation of Lujintong operations in April 2024. General and Administrative Expenses Our general and administrative expenses decreased by 13.9% from RMB2.4 billion in 2023 to RMB2.0 billion in 2024. This decrease was primarily due to our expense control measures. Operation and Servicing Expenses Our operation and servicing expenses decreased by 18.7% from RMB6.2 billion in 2023 to RMB5.0 billion in 2024, primarily due to a decrease in loan-related operating expenses, our expense control measures and the decrease in the loan balance, partially offset by the increased resources we invested in collection services. Technology and Analytics Expenses Our technology and analytics expenses decreased by 16.2% from RMB1.4 billion in 2023 to RMB1.2 billion in 2024. This decrease was primarily due to the expense control measures we adopted. Impairment Losses Our impairment losses, including credit impairment losses and asset impairment losses, decreased by 0.9% from RMB12.7 billion in 2023 to RMB12.6 billion in 2024. Credit impairment losses decreased by 0.7% from RMB12.7 billion for the year ended December 31, 2023 to RMB12.6 billion for the year ended December 31, 2024, primarily due to the decrease of actual losses, partially offset by the increase in provision of loans and receivables as a result of the increased risk-bearing loan balance. 165 Table of Contents Asset impairment improved from a loss of RMB31.2 million in 2023 to nil in 2024. Finance Costs Our finance costs decreased by 75.7% from RMB349.2 million in 2023 to RMB84.8 million in 2024, primarily due to decrease in financing for non-consumer finance entities and a decrease in interest expenses for our notes after their repayment in July 2023 primarily due to a decrease in interest expenses, which is in turn mainly driven by the repayment of optionally convertible promissory notes in 2023, partially offset by a decrease in bank interest income. Other gains/(losses) – net We recognized other gains – net of RMB213.0 million in 2023, while we recognized other loss – net of RMB252.6 million in 2024. The change was primarily due to foreign exchange losses we recognized in 2024. Income Tax Expenses Our income tax expenses increased by 140.0% from RMB0.6 billion for the year ended December 31, 2023 to RMB1.5 billion for the year ended December 31, 2024 due to increasing overseas dividend withholding tax and the reversal of deferred tax assets recognized in prior years. Net Profits/(Loss) As a result of the above, our net profit of RMB1.0 billion in 2023 became a loss of RMB3.6 billion in 2024. B. Liquidity and Capital Resources We had net cash generated from operating activities of RMB12,720.4 million, RMB1,816.8 million and RMB12,473.0 million (US$1,783.6 million) in 2023, 2024 and 2025, respectively. The following table sets forth a summary of our cash flows for the years presented: For the Year Ended December 31, 2023 2024 2025 (restated) (RMB) (RMB) (RMB) (US$) (in millions) Summary Consolidated Cash Flows Data: Net cash generated from operating activities 12,720 1,817 12,473 1,784 Net cash generated from/(used in) investing activities (3,470 ) 2,669 (16,467 ) (2,355 ) Net cash used in financing activities (20,248 ) (11,282 ) 3,317 474 Effect of exchange rate changes on cash and cash equivalents (20 ) 17 (33 ) (5 ) Net increase/(decrease) in cash and cash equivalents (11,018 ) (6,779 ) (709 ) (101 ) Cash and cash equivalents at beginning of the year 29,595 18,577 11,798 1,687 Cash and cash equivalents at end of the year 18,577 11,798 11,089 1,586 Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, and other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. We assess various options for the deployment of surplus capital or surplus funds, including investment in financial assets, acquisitions or dividend payouts to shareholders. 166 Table of Contents As of December 31, 2025, we had RMB22.1 billion (US$3.2 billion) in cash at bank, of which 91.7% was held in Renminbi. All of our cash at bank are held by major financial institutions located in China, which we believe are of high credit quality. As of December 31, 2025, there was one bank with which our cash and cash equivalents balance exceeded 10% of our total cash at bank. We had cash generated from operating activities of RMB12.7 billion, RMB1.8 billion and RMB12.5 billion (US$1.8 billion) in the year ended December 31, 2023, 2024 and 2025, respectively. We believe that net cash generated from operating activities and our cash on hand will be sufficient to meet our current and anticipated needs for general corporate purposes for at least the next 12 months. We may decide to enhance our liquidity position or increase our cash reserve through additional capital and finance funding. The issuance and sale of additional equity would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all. In utilizing the proceeds that we received from our initial public offering or that we may receive from other securities offerings outside of the PRC, we may make additional capital contributions to our PRC subsidiaries, establish new PRC subsidiaries and make capital contributions to these new PRC subsidiaries, make loans to our PRC subsidiaries, acquire onshore entities, or acquire offshore entities with business operations in China in offshore transactions. However, most of these uses are subject to PRC regulations and approvals. For example: • capital contributions to our PRC subsidiaries must be approved by or reported to the Ministry of Commerce or its local counterparts; and • loans by us to our PRC subsidiaries to finance their activities cannot exceed statutory limits and must be registered with SAFE or its local branches. See “Item 4. Information on the Company—B. Business Overview—Regulation—Regulations Relating to Foreign Exchange.” Substantially all of our future income is likely to be in Renminbi. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior SAFE approval as long as certain routine procedural requirements are fulfilled. Therefore, our PRC subsidiaries are allowed to pay dividends in foreign currencies to us without prior SAFE approval by following certain routine procedural requirements. However, approval from or registration with competent government authorities is required where the Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may at its discretion restrict access to foreign currencies for current account transactions in the future. Operating Activities Net cash generated from operating activities for the year ended December 31, 2025 was RMB12.5 billion (US$1.8 billion), as compared to loss before income tax expenses of RMB0.6 billion (US$0.1 billion) for the same period. The difference was primarily due to a decrease in loans to customers accounts and other receivables of RMB3.5 billion, together with non-cash credit impairment losses of RMB10.6 billion recognized in the profit or loss for the period. Net cash generated from operating activities for the year ended December 31, 2024 was RMB1.8 billion, as compared to loss before income tax expenses of RMB2.1 billion for the same period. The difference was primarily due to a decrease in loans to customers and accounts and other receivables of RMB17.9 billion and a decrease in accounts and other payables of RMB22.1 billion. Net cash generated from operating activities for the year ended December 31, 2023 was RMB12.7 billion, as compared to profit before income tax expenses of RMB1.6 billion for the same period. The difference was primarily due to a decrease in loans to customers and accounts and other receivables of RMB103.9 billion and a decrease in accounts and other payables of RMB97.9 billion. The decrease in loans to customers and accounts and other receivables was mainly due to the decrease in outstanding balance of loans originated by consolidated trust plans and the decrease in accounts and other receivables as we prudently scaled down our business due to macroeconomic challenges. The decrease in accounts and other payables and payables to investors of consolidated structured entities was mainly due to the decrease in payables to investors of consolidated trust plans as a result of the decrease in outstanding balance of loans originated by consolidated trust plans. In addition to these changes in our working capital accounts, the difference between our net cash generated from operating activities and our profit before income tax expenses was also due to the impact of certain other items, in particular unrealized credit impairment losses of RMB5.6 billion and finance cost classified as financing activities of RMB1.8 billion, partially offset by investment income classified as investing activities of RMB0.6 billion. 167 Table of Contents Investing Activities We prudently manage our investment allocation to ensure that we have investments readily convertible into cash from time to time in the event that there is a need for liquidity. We generally seek low-risk investment assets, including bank deposits, wealth management products, and fixed income products. Net cash used in investing activities for 2025 was RMB16.5 billion (US$2.4 billion), primarily as a result of payment for acquisition of investment assets, which exceeded proceeds from sale of investment assets. Net cash generated from investing activities for 2024 was RMB2.7 billion, primarily as a result of payment for acquisition of investment assets of RMB60.7 billion, partially offset by proceeds from sale of investment assets of RMB63.2 billion and interest received on investment assets of RMB0.9 billion. Net cash used in investing activities for 2023 was RMB3.5 billion, primarily as a result of payment for acquisition of investment assets of RMB71.6 billion, partially offset by proceeds from sale of investment assets of RMB67.3 billion and interest received on investment assets of RMB0.8 billion. Financing Activities We generally seek longer term domestic financing activities and implement early repayment or minimizing foreign exchange risk as our strategy for overseas financing activities. Net cash generated from financing activities for 2025 was RMB3.3 billion (US$0.5 billion), primarily as a result of proceeds from borrowings, partially offset by repayment of borrowings. Net cash used in financing activities for 2024 was RMB11.3 billion, primarily as a result of repayment of borrowings of RMB14.2 billion, payment for interest expenses of RMB0.7 billion, payment for early redemption and extension of convertible promissory notes payable of nil and repayment of bonds payable of nil, partially offset by proceeds from borrowings of RMB9.0 billion. Net cash used in financing activities for 2023 was RMB20.2 billion, primarily as a result of repayment of borrowings of RMB17.9 billion, repayment of optionally convertible promissory notes of RMB8.3 billion, payment for early redemption and extension of convertible promissory notes payable of RMB3.6 billion and repayment of bonds payable of RMB2.2 billion, partially offset by proceeds from borrowings of RMB14.6 billion. Off-Balance Sheet Arrangements As of December 31, 2025, 11.6% of the financing guarantees for the off balance loans we enabled were provided by third-party credit enhancement providers, while the remainder were provided by our licensed financing guarantee subsidiary. The following table sets forth the balance of our remaining commitment as at each balance sheet date under the financing guarantee contracts for which we do not consolidate the underlying loans. As of December 31, 2023 2024 2025 (restated) (RMB) (RMB) (RMB) (US$) (in millions) Financing guarantee commitments 54,903 68,017 67,470 9,648 168 Table of Contents Aside from the above, we have not entered into any financing guarantees or other commitments to guarantee the payment obligations of any unconsolidated third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholders’ equity or that are not reflected in our consolidated financial statements. We do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us. Contractual Obligations The following table sets forth our contractual obligations as of December 31, 2025: Total Less than 1 year 1-3 years 3-5 years More than 5 years (RMB) (US$) (RMB) (US$) (RMB) (US$) (RMB) (US$) (RMB) (US$) (in millions) Non-cancellable leases 260 37 152 22 106 15 2 0 0 0 Non-cancellable leases represent leases for office premises. Other than as shown above, we did not have any significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2025. Holding Company Structure Lufax Holding Ltd is a holding company with no material operations of its own. We conduct operations in China primarily through our subsidiaries, the consolidated affiliated entities and their subsidiaries in China. As a result, although other means are available for us to obtain financing at the holding company level, Lufax Holding Ltd’s ability to continue paying dividends to its shareholders and investors of the ADSs in the future, as well as its ability to service any debt it has incurred or may incur, may depend upon dividends paid by our PRC subsidiaries and, indirectly, on technical and consulting service fees paid by the consolidated affiliated entities in China. If our existing PRC subsidiaries or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, our wholly foreign-owned subsidiaries in China are permitted to pay dividends to us only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of our subsidiaries and consolidated affiliated entities in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, our subsidiaries and consolidated affiliated entities may allocate a portion of their after-tax profits based on PRC accounting standards to discretionary surplus funds at their discretion. Some of our subsidiaries are also required to set aside risk reserve funds. The statutory reserve funds and the discretionary surplus funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by SAFE. Some of our PRC subsidiaries will not be able to pay dividends until they generate accumulated profits and meet the requirements for statutory reserve funds or general risk reserves. C. Research and Development See “Item 4. Information on the Company—B. Business Overview—Our Technology” and “—Intellectual Property.” D. Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the period since January 1, 2026 that are reasonably likely to have a material effect on our revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions. 169 Table of Contents E. Critical Accounting Estimates Not applicable.