OneConnect Announces Fourth Quarter and Full Year Unaudited Financial Results - 18.03.24 - News

SHENZHEN, China, March 18, 2024

SHENZHEN, China, March 18, 2024 /PRNewswire/ -- OneConnect Financial Technology Co., Ltd. ("OneConnect" or the "Company") (NYSE: OCFT and HKEX: 6638), a leading technology-as-a-service provider for financial services industry in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights

Net loss attributable to shareholders was RMB81 million, as compared to RMB177 million for the same period of the prior year. Net margin to shareholders improved by 5.5 percentage points to -8.8% as compared to -14.3% for the same period of the prior year.
Net loss per ADS, basic and diluted, was RMB-2.24 as compared to RMB-4.80 for the same period of the prior year.

Full Year 2023 Financial Highlights

Gross margin was 36.8% as compared to 36.6% for the prior year; non- IFRS gross margin was 40.3%, as compared to 40.1% for the prior year.
Net loss attributable to shareholders was RMB363 million, as compared to RMB872 million for the prior year.
Net margin attributable to shareholders improved to -9.9% compared to -19.5% for the prior year.
Net loss per ADS, basic and diluted, was RMB-9.99 as compared to RMB-23.90 for the prior year.

In RMB'000, except percentages
and per ADS amounts

Three Months Ended

December 31

ARIVA.DE Börsen-Geflüster

Kurse

OneConnect Financial Technology Co Ltd

2,26 $

0,00%

OneConnect Financial Technology Co Ltd Chart

Year Ended

December 31

YoY

2023

2022

2023

2022

Revenue

Revenue from Ping An Group

497,524

695,992

-28.5 %

2,091,039

2,526,682

-17.2 %

Revenue from Lufax

63,604

104,527

-39.2 %

269,073

459,419

-41.4 %

Revenue from third-party customers¹

363,437

441,915

-17.8 %

1,307,396

1,477,901

-11.5 %

Total

924,565

1,242,434

-25.6 %

3,667,508

4,464,002

-17.8 %

Gross profit

358,066

501,070

1,349,405

1,635,016

Gross margin

38.7 %

40.3 %

36.8 %

36.6 %

Non-IFRS gross margin

42.1 %

42.8 %

40.3 %

40.1 %

Operating loss

(79,419)

(194,172)

(368,212)

(981,563)

Operating margin

-8.6 %

-15.6 %

-10.0 %

-22.0 %

Net loss attributable to shareholders

(81,349)

(177,337)

(362,715)

(872,274)

Net margin to shareholders

-8.8 %

-14.3 %

-9.9 %

-19.5 %

Net loss per ADS², basic and diluted

(2.24)

(4.80)

(9.99)

(23.90)

¹ Third-party customers refer to each customer with revenue contribution of less than 5% of the Company's total revenue in
the relevant period. These customers are a key focus of the Company's diversification strategy.

² In RMB. Each ADS represents thirty ordinary shares. In December 2022, the Company effected an ADS ratio change to
adjust its ordinary share to ADS ratio from one (1) ADS representing three (3) ordinary shares to one (1) ADS representing
thirty (30) ordinary shares, or the Ratio Change. Except otherwise stated, the Ratio Change has been retrospectively applied
for all periods presented in this press release.

Chairman, CEO and CFO Comments

"In 2023, we achieved remarkable milestones in loss reduction." Mr. Chongfeng Shen, Chairman of the Board and Chief Executive Officer of the Company, commented, "Net loss attributable to shareholders improved to RMB363 million from RMB872 million in the prior year. Multiple factors have contributed to this improvement, including our proactive adjustment to the product mix, continued cost control and improvement in operational efficiency, and effective allocation of resources to research and development."

Mr. Chongfeng Shen further commented, "In 2023, we continued our dedication in product upgrades. In order to improve user experience and application operation effectiveness, we further broadened application scenarios by refining our algorithm, expanding our system's compatibility and optimizing our architecture structure. These efforts have been recognized. For example, our Omni-Channel Agent Solution was listed among "Excellent Cases in Fintech Innovation and Application" in the third "Jinxintong" event hosted by China Academy of Information and Communication Technology. We also won the IDC FinTech "Global Top 100 FinTech Companies" award and the KPMG "China FinTech Enterprise Excellence Award"."

"Scientific and technological revolution will continue to deepen in 2024, and AI, as a new productivity initiative, will lead the high-speed industry-wide development. We firmly believe that the financial industry will provide the best practice scenarios for "AI plus" initiatives and is strategically important in training and developing new productivity initiatives. OneConnect is committed to upgrading and transforming the financial industry with technology innovations, focusing on serving premium-plus customers and products optimization to meet financial institutions' core demands to improve operational efficiency. Supported by intelligent voice robots, Omni-channel Agent Solution, and other products designed with these new productivity initiatives, our solutions enable financial institutions to improve efficiency, enhance service quality, reduce costs and mitigate risks."

"We achieved rapid growth in overseas business, which significantly contributed to our revenue. Our revenue contributed by overseas customers (exclude contribution from Ping An OneConnect Bank (Hong Kong) Limited ("PAOB")) increased by 37.2% to RMB182 million in 2023 from RMB133 million in 2022. Revenue proportion from overseas customers in third-party customers increased to 15.7% in 2023 from 9.7% in 2022. Our products are highly valued by overseas customers. In 2024, we will remain proactive to develop overseas markets and expand the overseas sales network."

"We are confident that the series of economic stimulus measures launched in China will positively boost the economy. However, we also recognize that it will take time for our industry to fully recover in the short term. In 2024, we will continue to be prudent and focus on boosting revenue from third-party customers as well as improving margins." Mr. Chongfeng Shen further supplemented.

Mr. Yongtao Luo, Chief Financial Officer, commented, "I am pleased to share that our efforts to manage costs and drive operational efficiencies have yielded significant results, demonstrating promising path to profitability. In the fourth quarter of 2023, our net margin to shareholders improved from -14.3% to -8.8% compared with the same period in 2022, while in the full year of 2023, our net margin to shareholders improved from -19.5% to -9.9% compared with last year. This not only demonstrates our commitment to financial health but also indicates a positive trajectory towards profitability. I am also delighted to announce that our non-IFRS gross margin in 2023 has remained relatively stable year-over-year with a slight increase from 40.1% to 40.3%. Free cash¹ amounted to RMB2,072 million as of December 31, 2023 (December 31, 2022: RMB2,082 million).These results validate our commitment to delivering value to our shareholders and maintaining a resilient financial position amidst changing market conditions. Looking ahead, we remain focused on enhancing revenue structure. We are confident in our ability to deliver sustainable growth and long-term value."

On November 13, 2023, the Company entered into a share purchase agreement with Lufax Holding Ltd (the "Purchaser"), and PAOB, an indirectly wholly-owned subsidiary of the Company incorporated in Hong Kong with limited liability, for the disposal of the Company's virtual bank business at a consideration of HK$933 million in cash (the "Disposal"). The Disposal has been approved by the audit committee of the board of directors and the shareholders of the Company, and the closing is subject to the fulfilment or waiver (as applicable) of each of the conditions precedent.

¹ Free cash equals the Company's cash and cash equivalents (exclusive of cash and cash equivalents of PAOB) plus financial assets at fair value through profit or loss.

Revenue Breakdown

Three Months Ended

Full Year Ended

Mehr Nachrichten zur OneConnect Financial Technology Co Ltd Aktie kostenlos abonnieren

E-Mail-Adresse

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.