Press Release

OneConnect Announces First Quarter 2024 Unaudited Financial Results

Gross Margin of Continuing Operations[1] Improved by 0.3ppt and Net Margin of Continuing Operations to Shareholders Narrowed by 0.7ppt for First Quarter 2024

SHENZHEN, China, May 21, 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 first quarter ended March 31, 2024.

First Quarter 2024 Financial Highlights

  • Revenue from continuing operations was RMB723 million as compared to RMB894 million for the same period of the prior year.
  • Gross margin of continuing operations increased by 0.3ppt year-over-year to 37.7% as compared to 37.4% for the same period of the prior year;Ā non-IFRS gross margin of continuing operations was 40.0% as compared to 40.1% for the same period of the prior year.
  • Operating loss from continuing operations narrowed 15.1% to RMB66 million, as compared to RMB78 million for the same period of the prior year. Operating margin of continuing operations increased to -9.2% from -8.7% for the same period of the prior year.
  • Net loss from continuing operations attributable to shareholders narrowed by 25.9% to RMB54 million, as compared to RMB72 million for the same period of the prior year. Net margin of continuing operations to shareholders narrowed by 0.7ppt to -7.4% as compared to -8.1% for the same period of the prior year.
  • Net loss from continuing operations per ADS, basic and diluted, was RMB-1.48 as compared to RMB-2.00 for the same period of the prior year.

[1] As previously reported, the Company completed the disposal of its virtual bank business (the “discontinued operations”) to Lufax for a consideration of HK$933 million in cash on April 2, 2024. As a result of the disposal, the historical financial results of the Virtual Banking Business segment have been reflected as the “discontinued operations” in the Company’s condensed consolidated financial statements and the historical financial results of the remaining business of the Company have been reflected as the “continuing operations” in the Company’s condensed consolidated financial statements of the first quarter of 2024 and of the comparative period in 2023.

Ā 

In RMB’000, except percentages
and per ADS amounts

ThreeĀ MonthsĀ Ended

MarchĀ 31Ā Ā Ā 

YoY

2024

2023

ContinuingĀ operations

Revenue

RevenueĀ fromĀ Ping AnĀ Group

Ā 

421,796

Ā 

536,854

Ā 

-21.4Ā %

RevenueĀ fromĀ Lufax

58,256

71,357

-18.4Ā %

Revenue from third-party customers[1]

243,218

285,615

-14.8Ā %

Total

723,270

893,826

-19.1Ā %

GrossĀ profit

272,403

334,657

GrossĀ margin

37.7Ā %

37.4Ā %

Non-IFRSĀ grossĀ margin

40.0Ā %

40.1Ā %

OperatingĀ loss

(66,348)

(78,142)

OperatingĀ margin

-9.2Ā %

-8.7Ā %

Net loss from continuing operations
Ā  Ā  attributable to shareholders

Ā 

(53,696)

Ā 

(72,479)

NetĀ margin ofĀ continuingĀ operations

toĀ shareholders

-7.4Ā %

-8.1Ā %

Net loss from continuing operations per ADS[2],

basicĀ andĀ diluted

(1.48)

(2.00)

Ā 

Ā Ā Ā Ā Ā Ā Ā 

[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 30 ordinary shares.

Chairman, CEO and CFO Comments

Mr. Chongfeng Shen, Chairman of the Board and Chief Executive Officer, commented, “Since the beginning of 2024, we have been continuously optimizing our product and customer structure and focusing on our core businesses under the strategy of “Unite the Core, Empower the Wings” in order to achieve quality development. We have continued to expand our overseas business and have recorded rapid growth. Our revenue from third-party overseas customers from continuing operations increased by 14.8% on a year-over-year basis in the first quarter of 2024. In the same quarter, we achieved remarkable results in costs reduction and efficiency improvement, and our loss continued to narrow.”

Mr. ChongfengĀ Shen further commented, “We have strengthened our research capabilities and introduced high value and high-end products into the ever-involving financial technology industry. Our spirit of innovation has been well-received and recognized in the industry. In the future, we will continue focusing on digital banking, digital insurance and Gamma platform, and continue to optimize our product and customer structure, upgrade our services and further expand into overseas market. With our unique competence in integrating “technology + business”, we endeavor to continue to promote the development of new productivity in the financial industry.”

Mr.Ā YongtaoĀ Luo, Chief Financial Officer, commented, “We continued to make steady progress towards its profitability targets in the first quarter of 2024. Gross margin of the Company’s continuing operations for the first quarter was 37.7% and increased by 0.3ppt on a year-over-year basis. Benefiting from our success in costs reduction and efficiency improvement, our operating expenses from our continuing operations decreased significantly by 17.7 % on a year-over-year basis. For research and development, we allocated our resources strategically and focused our capital and labor efficiently on high-quality products and projects. As a result, our research and development expenses decreased by 22.8% on a year-over-year basis while we also maximized the value of outputs from these research and development. As a result, our net loss from continuing operations attributable to shareholders decreased by 25.9% on a year-over-year basis. Going forward, we will continue to strictly implement cost control measures and improve operation efficiency. Meanwhile, we will enhance our product competitiveness and endeavor to drive revenue growth, especially third-party revenue growth, from premium-plus customers. These efforts combined will help us reach our profitability targets as early as possible and create more value for our shareholders and customers.”

“AsĀ previouslyĀ disclosed,Ā weĀ receivedĀ notificationsĀ fromĀ certainĀ subsidiariesĀ andĀ associatesĀ of Ping AnĀ InsuranceĀ (Group) CompanyĀ ofĀ China,Ā Ltd.Ā thatĀ theyĀ intendĀ toĀ ceaseĀ toĀ utilize theĀ cloud servicesĀ weĀ provideĀ underĀ GammaĀ FinCloud platform. There are uncertainties as to whether any of the other connected customers will continue to utilize our cloud services. We have been actively monitoring the situation and evaluating our business plans and further measures in response to these developments and corresponding financial impact.”

Revenue from Continuing Operations BreakdownĀ 

Three MonthsĀ Ended

InĀ RMB’000,Ā exceptĀ percentagesĀ  Ā  Ā 

MarchĀ 31

2024

2023

YoY

Implementation

157,459

209,934

-25.0Ā %

Transaction-basedĀ andĀ supportĀ revenue

BusinessĀ originationĀ services

Ā 

12,835

Ā 

49,046

Ā 

-73.8Ā %

RiskĀ managementĀ services

65,483

77,743

-15.8Ā %

OperationĀ supportĀ services

134,062

222,545

-39.8Ā %

CloudĀ servicesĀ platform

318,307

292,247

8.9Ā %

Post-implementationĀ supportĀ services

14,921

12,341

20.9Ā %

Others

20,203

29,970

-32.6Ā %

Sub-total for transaction-based
Ā  Ā  and support revenue

Ā 

565,811

Ā 

683,892

Ā 

-17.3Ā %

Total RevenueĀ fromĀ ContinuingĀ Operations

723,270

893,826

-19.1Ā %

Ā 

Revenue from continuing operations in the first quarter of 2024 declined by 19.1% to RMB723 million from RMB894 million for the same period in the prior year, primarily due to a decline in transaction-based and support revenue as we continued to focus on high value products and reduced customized projects with low margins in the first quarter. Implementation revenue decreased by 25.0% on a year-over-year basis to RMB157 million, mainly due to a reduced demand for banking system products and Gamma Platform data middle platform system products in the first quarter. Revenue from business origination services decreased by 73.8% on a year-over-year basis to RMB13 million, primarily due to declined transaction volumes in Marketing Management Platform under digital retail banking solutions and in loan origination systems under digital credit management solutions. Revenue from risk management services decreased by 15.8% on a year- over-year basis to RMB65 million, mainly due to reduced transaction volume in banking related risk analytic solutions because of slower than expected recovery of banking activities in the first quarter. Revenue from operation support services decreased by 39.8% on a year-over-year basis to RMB134 million, which was primarily due to change of business model in some auto ecosystem services business that the Company migrates from acting as a contractor to a distributor. Revenue from cloud services platform increased by 8.9% on a year-over-year basis to RMB318 million due to the increased transaction volume of cloud services.Ā 

Three MonthsĀ Ended

InĀ RMB’000,Ā exceptĀ percentagesĀ  Ā  Ā 

MarchĀ 31

YoY

2024

2023

DigitalĀ BankingĀ segment

161,553

258,738

-37.6Ā %

DigitalĀ InsuranceĀ segment

131,886

176,657

-25.3Ā %

GammaĀ PlatformĀ segment

429,831

458,431

-6.2Ā %

Total fromĀ ContinuingĀ Operations

723,270

893,826

-19.1Ā %

Ā 

Revenue from Gamma Platform segment, decreased by 6.2% to RMB430 million in the first quarter of 2024 from RMB458 million for the same period last year, contributing 59.4% of the total revenue mainly because of lower demand of implementation services. Revenue from Digital Banking segment decreased by 37.6% to RMB162 million in the first quarter of 2024 from RMB259 million for the same period last year, mainly caused by reduction in transaction volume of our business origination services and risk management services. This revenue decline reflects our continued efforts to phase out lower value products. Revenue from Digital Insurance segment decreased by 25.3% to RMB132 million in the first quarter of 2024 from RMB177 million for the same period in the prior year, primarily due to change of business model in some auto ecosystem services business that the Company migrates from acting as a contractor to a distributor.

First Quarter 2024 Financial Results

Revenue from Continuing Operations

Revenue from continuing operations in the first quarter of 2024 decreased by 19.1% to RMB723 million from RMB894 million for the same period in the prior year, primarily due to decline in transaction-based and support revenue. Revenue decline reflects our decision to adopt quality growth strategy focusing on high value products and to reduce customized projects with low margins. We are encouraged to see that gross margin of continuing operations for the quarter improved by 0.3ppt year-over-year to 37.7% because of this strategy. We aim to establish a foundation for a durable and long-term development.

Cost of Revenue from Continuing Operations

Cost of revenue from continuing operations in the first quarter of 2024 decreased by 19.4% to RMB451 million from RMB559 million for the same period in the prior year, primary due to decreased revenue and associated outsourcing labour costs. Cost of revenue declined more than revenue because we phased out lower value products in the first quarter.

Gross Profit from Continuing Operations

GrossĀ profitĀ fromĀ continuingĀ operationsĀ decreasedĀ toĀ RMB272Ā millionĀ fromĀ RMB335Ā million for the same period in the prior year. Gross margin of continuing operations improved to 37.7%,Ā compared with 37.4% in the prior year, increased by 0.3ppt. Non-IFRS gross margin of continuing operations was 40.0%, compared with 40.1% in the prior year. For a reconciliation of the Company’s IFRSĀ andĀ non-IFRSĀ grossĀ margin,Ā pleaseĀ referĀ toĀ “ReconciliationĀ ofĀ IFRS and Non- IFRS Results for continuing operations (Unaudited)”.

OperatingĀ LossĀ andĀ ExpensesĀ fromĀ ContinuingĀ Operations

Total operating expenses from continuing operations for the first quarter of 2024 decreased to RMB342 million, compared with RMB416 million for the same period in the prior year. As a percentage of revenue, total operating expenses from continuing operations increased by 0.8ppt to 47.3% from 46.5%.

  • Research and Development expenses from continuing operationsĀ for the first quarter of 2024 decreased to RMB213 million from RMB276 million, mainly due to our initiative to invest in research and development at a reasonable pace and selectively invest in profitable projects. As a percentage of revenue, research and development expenses from continuing operations decreased to 29.5%, compared with 30.9% in the prior year.
  • Sales and Marketing expenses from continuing operationsĀ for the first quarter of 2024 decreased to RMB49 million, compared with RMB59 million in the prior year, mainly due to enhanced sales capability and efficiency resulting from lowered personnel cost and associated selling costs. As a percentage of revenue, sales and marketing expenses from continuing operations were 6.7%, compared with 6.6% in the prior year.
  • General and Administrative expenses from continuing operations for the first quarter of 2024 increased to RMB81 million from RMB80 million in the prior year. As a percentage of revenue, general and administrative expenses from continuing operations increased to 11.1% from 9.0%, primarily due to decreased revenue in the first quarter.

Operating loss from continuing operations for the first quarter of 2024 decreased notably to RMB66 million, compared with RMB78 million for the same period in the prior year. Operating margin of continuing operations increased to -9.2% from -8.7% in the prior year.

Net Loss from Discontinued Operations

Net loss from discontinued operations in the first quarter of 2024 increased by 39.1% to RMB51 million from RMB36 million in the prior year.

Net Loss from Continuing Operations Attributable to Shareholders

NetĀ lossĀ fromĀ continuingĀ operationsĀ attributableĀ toĀ OneConnect’s shareholders decreased by 25.9% to RMB54 million for the first quarter of 2024, versus RMB72 million for the same period in the prior year. Net loss from continuing operations attributable toĀ OneConnect’s shareholders per basic and diluted ADS decreased to RMB-1.48, versus RMB-2.00 for the same period in the prior year. Weighted average number of ordinary shares for the first quarter was 1,089,589,125.

Cash Flow

For the first quarter of 2024, net cash used in operating activities was RMB155 million. Net cash generated from investing activities was RMB256 million. Net cash used in financing activities was RMB101 million.

Conference Call Information

Date/TimeĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  Tuesday,Ā MayĀ 21,Ā 2024Ā atĀ 8:00Ā a.m.,Ā U.S. Eastern timeĀ  Ā  Ā  Ā  Ā 
Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Tuesday, May 21, 2024 at 8:00 p.m., Hong Kong time

Online registration Ā  Ā  Ā  https://www.netroadshow.com/events/login?show=f962eec4&confId=64991

The financial results and an archived transcript will be available at OneConnect’s investor relations website at ir.ocft.com.

AboutĀ OneConnect

OneConnect Financial Technology Co., Ltd. is a technology-as-a-service provider for financial services industry. The Company integrates extensive financial services industry expertise with market-leading technology to provide technology applications and technology-enabled business services to financial institutions. The integrated solutions and platform the Company provides include digital banking solution, digital insurance solution and Gamma Platform, which is a technology infrastructural platform for financial institutions. The Company’s solutions enable its customers’ digital transformations, which help them improve efficiency, enhance service quality, and reduce costs and risks.

The Company has established long-term cooperation relationships with financial institutions to address their needs of digital transformation. The Company has also expanded its services to other participants in the value chain to support the digital transformation of financial services eco- system. In addition, the Company has successfully exported its technology solutions to overseas financial institutions.

ForĀ moreĀ information,Ā please visitĀ ir.ocft.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward- looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s limited operating history in the technology-as-a-service for financial institutions industry; its ability to achieve or sustain profitability; the tightening of laws, regulations or standards in the financial services industry; the Company’s ability to comply with the evolving regulatory requirements in the PRC and other jurisdictions where it operates; its ability to comply with existing or future laws and regulations related to data protection or data security; its ability to maintain and enlarge the customer base or strengthen customer engagement; its ability to maintain its relationship and engagement with Ping An Group and its related parties, which are its strategic partner, most important customer and largest supplier; its ability to compete effectively to serve China’s financial institutions; the effectiveness of its technologies, its ability to maintain and improve technology infrastructure and security measures; its ability to protect its intellectual property and proprietary rights; its ability to maintain or expand relationship with its business partners and the failure of its partners to perform in accordance with expectations; its ability to protect or promote its brand and reputation; its ability to timely implement and deploy its solutions; its ability to obtain additional capital when desired; litigation and negative publicity surrounding China-based companies listed in the U.S.; disruptions in the financial markets and business and economic conditions; the Company’s ability to pursue and achieve optimal results from acquisition or expansion opportunities; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

UseĀ ofĀ Unaudited Non-IFRS FinancialĀ Measures

The unaudited consolidated financial information is prepared in accordance with IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). Non-IFRS measures are used in gross profit and gross margin, adjusted to exclude non-cash items, which consist of amortization of intangible assets recognized in cost of revenue, depreciation of property and equipment recognized in cost of revenue, and share-based compensation expenses recognized in cost of revenue. OneConnect’s management regularly review non-IFRS gross profit and non-IFRS gross margin to assess the performance of our business. By excluding non-cash items, these financial metrics allow OneConnect’s management to evaluate the cash conversion of one dollar revenue on gross profit. OneConnect uses these non-IFRS financial measures to evaluate its ongoing operations and for internal planning and forecasting purposes. OneConnect believes that non- IFRS financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, facilitates period-to- period comparisons of results of operations, and assists in comparisons with other companies, many of which use similar financial information. OneConnect also believes that presentation of the non-IFRS financial measures provides useful information to its investors regarding its results of operations because it allows investors greater transparency to the information used by OneConnect’s management in its financial and operational decision making so that investors can see through the eyes of the OneConnect’s management regarding important financial metrics that the management uses to run the business as well as allowing investors to better understand OneConnect’s performance. However, non-IFRS financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from similarly-titled non- IFRS measures used by other companies. In light of the foregoing limitations, you should not consider non-IFRS financial measure in isolation from or as an alternative to the financial measure prepared in accordance with IFRS. Whenever OneConnect uses a non-IFRS financial measure, a reconciliation is provided to the most closely applicable financial measure stated in accordance with IFRS. You are encouraged to review the related IFRS financial measures and the reconciliation of these non-IFRS financial measures to their most directly comparable IFRS financial measures. For more information on non-IFRS financial measures, please see the table captioned “Reconciliation of IFRS and non-IFRS results for continuing operations (Unaudited)” set forth at the end of this press release.

Contacts

Investor Relations:

OCFT IR Team
[email protected]

Media Relations:

OCFT PR Team
[email protected]

ONECONNECT

CONDENSEDĀ CONSOLIDATEDĀ STATEMENTSĀ OFĀ COMPREHENSIVEĀ INCOME

(Unaudited)

Three Months Ended March 31

2024

RMB’000

2023

RMB’000

Revenue

723,270

893,826

CostĀ ofĀ revenue

(450,867)

(559,169)

Gross profit

272,403

334,657

ResearchĀ andĀ developmentĀ expenses

(213,183)

(276,146)

SellingĀ andĀ marketingĀ expenses

(48,500)

(59,202)

GeneralĀ andĀ administrativeĀ expenses

(80,520)

(80,213)

NetĀ impairmentĀ losses onĀ financialĀ and contractĀ assets

(13,690)

(24,065)

OtherĀ income,Ā gains orĀ loss-net

17,142

26,827

OperatingĀ loss

(66,348)

(78,142)

FinanceĀ income

10,340

5,790

FinanceĀ costs

(4,278)

(6,141)

FinanceĀ costs – net

6,062

(351)

ShareĀ ofĀ gain ofĀ associateĀ andĀ jointĀ venture – net

–

7,157

ImpairmentĀ chargesĀ onĀ associate

–

(7,157)

Loss beforeĀ incomeĀ tax

(60,286)

(78,493)

IncomeĀ taxĀ (expense)/benefit

(89)

1,872

Loss fromĀ continuingĀ operations

(60,375)

(76,621)

LossĀ fromĀ discontinuedĀ operationsĀ (attributableĀ toĀ equity
Ā  Ā  holders of the company)

Ā 

(50,638)

Ā 

(36,394)

Loss forĀ theĀ period

(111,013)

(113,015)

Loss attributableĀ to:

– OwnersĀ ofĀ theĀ Company

Ā 

(104,334)

Ā 

(108,873)

– Non-controllingĀ interests

(6,679)

(4,142)

(111,013)

(113,015)

Ā 

Ā 

Three Months Ended March 31

2024

RMB’000

2023

RMB’000

Other comprehensiveĀ income/(loss),Ā netĀ ofĀ tax:

Items thatĀ mayĀ beĀ subsequentlyĀ reclassifiedĀ toĀ profitĀ orĀ loss

– ForeignĀ currencyĀ translationĀ differences

Ā 

Ā 

1,334

Ā 

Ā 

(3,203)

– ExchangeĀ differencesĀ onĀ translationĀ ofĀ discontinuedĀ operations

177

(11,651)

– ChangesĀ inĀ theĀ fair valueĀ ofĀ debtĀ instrumentsĀ measuredĀ at

fair valueĀ throughĀ other comprehensiveĀ incomeĀ of

discontinuedĀ operations

Ā 

6,056

Ā 

(3,724)

Item thatĀ willĀ notĀ beĀ reclassifiedĀ subsequentlyĀ toĀ profit orĀ loss

– ForeignĀ currencyĀ translationĀ differences

Ā 

1,942

Ā 

(30,655)

– ChangesĀ inĀ theĀ fair valueĀ ofĀ equity instrumentsĀ measured

atĀ fairĀ valueĀ through otherĀ comprehensiveĀ income

Ā 

–

Ā 

–

Total comprehensiveĀ lossĀ for theĀ period

(101,504)

(162,248)

Total comprehensiveĀ lossĀ attributableĀ to:

– OwnersĀ ofĀ theĀ Company

Ā 

(94,825)

Ā 

(158,106)

– Non-controllingĀ interests

(6,679)

(4,142)

(101,504)

(162,248)

Total comprehensive loss attributable to owners
Ā  Ā  Ā of the Company arises from:

– ContinuingĀ operations

Ā 

Ā 

(50,420)

Ā 

Ā 

(106,337)

– DiscontinuedĀ operations

(44,405)

(51,769)

(94,825)

(158,106)

Loss perĀ shareĀ forĀ lossĀ from continuingĀ operations
Ā  Ā  attributable to the owners of the Company
Ā  Ā (expressed in RMBĀ perĀ share)

–  Basic and dilutedĀ Ā Ā 

(0.05)

(0.07)

Ā Loss per ADS for loss from continuing operations
Ā  Ā  attributable to the owners of the Company
Ā  Ā (expressed in RMBĀ perĀ share)

–  Basic and dilutedĀ 

(1.48)

(2.00)

Ā Loss per share for loss attributable to the owners
Ā  Ā  of the Company
Ā  Ā (expressed in RMBĀ perĀ share)

–  Basic and dilutedĀ Ā Ā 

(0.10)

(0.10)

Ā Loss per ADS for loss attributable to the owners
Ā  Ā  of the Company
Ā  (expressed in RMBĀ perĀ share)

–  Basic and dilutedĀ Ā 

(2.87)

(3.00)

Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā Ā Ā 

Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā  Ā Ā 

Ā 

ONECONNECT

CONDENSEDĀ CONSOLIDATEDĀ BALANCEĀ SHEETS

(Unaudited)

Three Months Ended March 31

2024

RMB’000

2023

RMB’000

ASSETS

Non-currentĀ assets

PropertyĀ andĀ equipment

Ā 

Ā 

91,815

Ā 

Ā 

85,076

IntangibleĀ assets

344,356

471,371

DeferredĀ taxĀ assets

768,582

768,276

FinancialĀ assetsĀ measuredĀ atĀ fairĀ value throughĀ other

comprehensiveĀ income

Ā 

3,204

Ā 

1,372,685

RestrictedĀ cash

5,319

5,319

PrepaymentsĀ andĀ other receivables

6,961

6,663

Total non-currentĀ assets

1,220,237

2,709,390

CurrentĀ assets

TradeĀ receivables

Ā 

899,489

Ā 

710,669

ContractĀ assets

105,393

95,825

PrepaymentsĀ andĀ other receivables

908,338

905,691

FinancialĀ assetsĀ measuredĀ atĀ amortizedĀ cost fromĀ virtualĀ bank

–

3,081

FinancialĀ assetsĀ measuredĀ atĀ fairĀ value throughĀ other

comprehensiveĀ income

Ā 

–

Ā 

853,453

FinancialĀ assetsĀ measuredĀ atĀ fairĀ value throughĀ profitĀ orĀ loss

629,173

925,204

DerivativeĀ financialĀ assets

47,778

38,008

Restricted cash and time deposits with an initial term over three months

36,827

447,564

CashĀ andĀ cashĀ equivalents

1,252,102

1,379,473

3,879,100

5,358,968

AssetsĀ classifiedĀ asĀ heldĀ forĀ sale

3,042,329

–

TotalĀ currentĀ assets

6,921,429

5,358,968

Total assets

8,141,666

8,068,358

EQUITYĀ ANDĀ LIABILITIES

Equity

ShareĀ capital

Ā 

Ā 

78

Ā 

Ā 

78

SharesĀ heldĀ forĀ shareĀ option scheme

(149,544)

(149,544)

OtherĀ reserves

11,000,514

10,989,851

AccumulatedĀ losses

(7,977,948)

(7,873,614)

EquityĀ attributableĀ toĀ equity ownersĀ ofĀ theĀ Company

2,873,100

2,966,771

Non-controlling interests

(25,658)

(18,979)

Total equity

2,847,442

2,947,792

Ā 

Ā 

ThreeĀ Months EndedĀ MarchĀ 31

Ā  Ā 2024

RMB’000

Ā  2023

RMB’000

TradeĀ andĀ other payables

39,242

28,283

ContractĀ liabilities

16,131

17,126

DeferredĀ taxĀ liabilities

1,299

2,079

Total non-currentĀ liabilities

56,672

47,488

TradeĀ andĀ other payables

2,175,142

1,981,288

PayrollĀ andĀ welfare payables

284,602

385,908

ContractĀ liabilities

156,674

138,563

Short-termĀ borrowings

162,068

251,732

CustomerĀ deposits

–

2,261,214

OtherĀ financialĀ liabilitiesĀ fromĀ virtualĀ bank

–

54,373

2,778,486

5,073,078

LiabilitiesĀ directlyĀ associatedĀ with assets

classifiedĀ asĀ held forĀ sale

Ā 

2,459,066

Ā 

–

TotalĀ currentĀ liabilities

5,237,552

5,073,078

Total liabilities

5,294,224

5,120,566

Total equityĀ andĀ liabilities

8,141,666

8,068,358

Ā 

Ā 

Ā 

ONECONNECT

CONDENSEDĀ CONSOLIDATEDĀ STATEMENTSĀ OFĀ CASHĀ FLOWS

Ā (Unaudited)

ThreeĀ Months EndedĀ MarchĀ 31

2024

RMB’000

2023

RMB’000

Ā 

NetĀ cashĀ used inĀ operatingĀ activities

Ā 

(115,236)

Ā 

(613,264)

NetĀ cashĀ generatedĀ fromĀ investingĀ activities

255,848

407,066

NetĀ cashĀ used inĀ financingĀ activities

(100,971)

(44,421)

NetĀ increase/(decrease)Ā inĀ cashĀ andĀ cashĀ equivalents

39,641

(250,619)

CashĀ andĀ cash equivalentsĀ atĀ theĀ beginningĀ ofĀ theĀ period

1,379,473

1,907,776

EffectsĀ ofĀ exchangeĀ rateĀ changesĀ onĀ cashĀ and cashĀ equivalents

1,777

(10,726)

Cash andĀ cashĀ equivalentsĀ atĀ theĀ end ofĀ period

1,420,891

1,646,431

Ā 

Ā 

Ā 

ONECONNECT

RECONCILIATION OF IFRS AND NON-IFRS RESULTS
Ā FOR CONTINUING OPERATIONS

(Unaudited)

ThreeĀ Months EndedĀ MarchĀ 31

2024

RMB’000

2023

RMB’000

GrossĀ profitĀ from continuingĀ operations

272,403

334,657

Gross margin of continuing operations

37.7Ā %

37.4Ā %

Non-IFRS adjustment

Ā  Ā  Amortization of intangible assets recognized in

Ā  Ā  Ā  Ā cost of revenueĀ 

15,542

22,209

Ā  Ā  Depreciation of property and equipment recognized

Ā  Ā  Ā  Ā  in cost of revenueĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā 

1,152

1,354

Ā  Ā  Share-based compensation expenses recognized
Ā  Ā  Ā  Ā  in cost of revenue

228

436

Non-IFRS grossĀ profit fromĀ continuingĀ operations

289,325

358,656

Non-IFRSĀ grossĀ marginĀ ofĀ continuingĀ operations

40.0Ā %

40.1Ā %

Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  Ā 

Ā  Ā Ā 

Ā 

Ā 

Cision View original content:https://www.prnewswire.com/news-releases/oneconnect-announces-first-quarter-2024-unaudited-financial-results-302151289.html

SOURCE OneConnect Financial Technology Co., Ltd.

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