Lujin basically completed the liquidation of P2P stock, and the proportion of assets fell to 0.9% at the end of March.

The P2P business has almost disappeared from the reports of the former industry boss Lulu Gold. On April 27, Beijing time, Lujin Holdings (NYSE: LU) announced its unaudited financial report for the first quarter, and as of March 31, its online loan historical stock products accounted for only 0.9% of the total assets of customers.

"Lujin Holdings basically completed the cleanup of the historical products of online loans in the quarter." Lu JinSuo Holdings said in a quarterly report.

Since the cessation of P2P incremental business in the second half of 2019, in order to cooperate with the "three drops" of online loans, Lujin has begun to clean up the stock business. As of December 31, 2020, its online loan history products accounted for only 4.5% of total customer assets, down sharply from 29.8% in the same period of 2019. At the end of the first quarter of 2021, this proportion further decreased from 4.5% to 0.9%.

At the same time, the first quarterly report of Lujin Institute shows that during the reporting period, its total revenue and net profit achieved double-digit growth in the two core indicators, with total operating income reaching 15.251 billion yuan, an increase of 16.9% year-on-year; and net profit recorded 4.969 billion yuan, an increase of 18.7% year-on-year.

The financial report also shows that among the quarterly new loans of Lujin's retail credit business, the proportion of loans for small and micro enterprises has further increased to 75.7%, and the loan interest rate has continued to decline; the proportion of assets of medium and high-end customers with an investment amount of more than 300,000 yuan in the wealth management platform has increased to 76.3% of total assets.

The first quarterly report shows that all the main risk indicators of Lujin Institute have improved, and the overdue rate has been further reduced. As of the end of the reporting period, the consolidated migration rate of loans facilitated by the Company to overdue loans was only 0.4%, compared with the peak of the indicator in February 2020, and the overdue rate of all loans over 30 days was only 2.0%, unchanged from the fourth quarter of 2020 and remained stable.

Looking back on the first quarter of this year, Ji Kuisheng, co-CEO of Lujin Holdings, said: "The performance growth of Lujin Holdings exceeded the previous guidance expectations, achieving steady top-line and bottom-line growth. He believes that this is due to four major trends: the rebound of the retail credit business, the steady growth of the business, the continuous optimization of the revenue structure, the good progress of the transition to a risk-sharing model, and the stabilization of the assets and rates of wealth management customers.

Lu Jin also gave the expected guidance of the performance in the first half of 2021 in the quarterly report. It is expected that in the first half of this year, the new loans of retail credit business will increase by 12% to 15% year-on-year to 317.4 billion to 327.4 billion yuan, and the asset scale of wealth management business customers will increase to 410 billion to 420 billion yuan, an increase of 9% to 12% year-on-year; in terms of financial indicators, the total revenue in the first half of the year is expected to increase by 17% to 18% year-on-year to 30.2 billion to 30.4 billion yuan, and the net profit in the first half of the year is expected to increase by 19% to 22% year-on-year, reaching 8.7 billion to 8.9 billion yuan.