【True Insight Hong Kong Stock Market】OneConnect Financial Technology released its Q3 2024 financial report, with net profit attributable to the parent company reaching 110 million yuan.

Hong Kong, November 14, 2024—$OCFT(06638.HK) ("OneConnect" or "the Company", NYSE: OCFT, HKEX:$OCFT(6638.HK)), a business technology service provider for financial institutions, announced its financial results for the first three quarters ended September 30, 2024. 2024 marks a pivotal year for OneConnect's Phase II strategy, with the company focusing on "product upgrades, deepening customer relationships, and overseas expansion." OneConnect continues to accelerate Ping An's technology exports and its own product development, concentrating resources on creating high-value, high-barrier products. Meanwhile, the company has been actively expanding into overseas markets, tailoring products to meet local market demands and institutional pain points while exploring innovative collaboration models to address the increasingly diverse needs of the global digital finance landscape. In the first nine months, net profit attributable to the parent company reached RMB 110 million.

This year, OneConnect's profitability has further improved, with overseas business maintaining strong growth. In Q3 2024, OneConnect's revenue from continuing operations (excluding virtual banking) was RMB 417 million. Net loss attributable to the parent company narrowed to RMB 30 million, a 41.9% improvement compared to the net loss of RMB 51 million in the same period last year. Gross margin and adjusted gross margin reached 32.7% and 35.6%, respectively. For the first three quarters of 2024, OneConnect achieved a combined net profit attributable to the parent company of RMB 110 million from continuing and discontinued operations, a year-on-year increase of 138.9%, with a net profit margin of 6.0%, up 16.7 percentage points year-on-year. Additionally, revenue from third-party overseas customers grew by 23.4% in the first three quarters.

Mr. Shen Chongfeng, Chairman and CEO of OneConnect, stated: "Since 2024, the company's overseas business has maintained strong growth momentum, with further improvements in profitability. These achievements are attributed to the company's proactive adjustments to its product portfolio, deepening customer relationships, expanding domestic and international markets, and consistently implementing strict cost controls, laying a solid foundation for our mid-term profitability goals."

Mr. Lin Lubo, CFO of OneConnect, said: "Moving forward, OneConnect will focus on increasing product standardization, delivering more high-value products, and further improving gross margin levels. The company will continue to optimize its cost structure, advance overseas business expansion, conduct targeted strategic R&D for high-value products, and deepen collaborations with premium clients. We believe these initiatives will drive OneConnect's high-quality development and create more value for customers and shareholders."

Overseas Business as a Strong Growth Engine

In the first three quarters of 2024, OneConnect's revenue from third-party overseas customers grew by 23.4% year-on-year, accounting for 22.8% of total revenue (excluding virtual banking), up 7 percentage points year-on-year. In Q3, OneConnect successfully launched an upgraded Smart Loan Platform (SLP) project, helping overseas clients enhance business expansion capabilities and operational efficiency. The SLP project showcased OneConnect's technological prowess and product value, earning recognition from multiple institutions. Currently, the company's products have been deployed across various overseas sectors, including regional banks, digital banks, and financial companies. Going forward, OneConnect plans to leverage its product capabilities and technological advantages to further expand its footprint in six ASEAN countries—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Brunei—boosting its overseas influence. By the end of Q3, OneConnect's operations spanned over 20 countries and regions, including South Africa, Singapore, Thailand, Malaysia, Indonesia, the UAE, the Philippines, and Vietnam, serving 192 overseas financial institutions, including two of Southeast Asia's top three regional banks and two of the world's top ten insurers. Mr. Shen noted that OneConnect's intelligent credit solutions are highly popular among overseas bank clients, reflecting growing recognition of the company's products and services. This is the result of the company's commitment to product integration and upgrades, deepening customer relationships, and innovative collaboration models.

Looking ahead, OneConnect will continue to leverage artificial intelligence (AI) to enhance product competitiveness and seize overseas market opportunities.

Multiple Awards in Q3

In Q3 2024, OneConnect received awards from several third-party institutions and authoritative media, including "IDC China FinTech 50," "Forbes China 50 Most Influential FinTech Companies," "Forbes China FinTech ESG Top 10," and the "4th NIFD-DCITS FinTech Top 10 Innovation Cases" by the National Institution for Finance & Development (NIFD) and Shenzhen Financial Technology Innovation Promotion Association (DCITS), totaling 318 awards. These honors highlight industry and societal recognition of OneConnect's technological strength and influence.

Continued Product Integration to Serve Core Clients

Mr. Shen stated that OneConnect is currently in a critical phase of its "deepening customer relationships" 2.0 strategy. The company will continue to focus on financial institution clients, integrating and optimizing products and services, with an emphasis on three core business segments: digital banking, digital insurance, and the Gamma platform. This strategy will enhance product capabilities, helping financial institutions improve efficiency and achieve successful digital transformation.

In the retail segment of digital banking, OneConnect continues to drive digital transformation, focusing on comprehensive customer management, precise product recommendations, and intelligent channel operations to enable smart operations. In the credit segment, the company has established a lightweight intelligent credit management system and an inclusive finance platform to build smart credit management capabilities, assisting financial institutions in advancing inclusive finance. OneConnect has also partnered with several foreign banks in digital lending, including a long-term collaboration with Commerce International Merchant Bank (CIMB) to co-develop customized products and improve customer experience. In digital insurance, OneConnect has implemented multiple end-to-end SaaS deployment benchmark projects, including one with a large state-owned property insurer to address pain points in claims, underwriting, and service processes, helping clients strengthen claims risk control and underwriting quality. In Hong Kong, OneConnect fully deployed an electronic point-of-sale (ePOS) platform for a mid-sized insurer, now widely adopted by over 100 brokerage firms and 1,000+ agents, significantly expanding market coverage and driving effective growth. The ePOS platform's average utilization rate across all channels exceeds 80%.

Additionally, OneConnect leverages its Gamma platform's intelligent solutions to continue focusing on financial, government, and large enterprise clients while actively expanding overseas markets to support digital decision-making, operations, and management. For example, its upgraded intelligent visual risk control platform integrates advanced AI technologies like fingerprint recognition and micro-expression analysis to enhance anti-fraud capabilities. Furthermore, OneConnect launched an electronic Know Your Customer (eKYC) solution in Hong Kong, reducing user workflow time by 50%.

Mr. Shen added: "Amid a challenging macroeconomic environment, our Q3 revenue declined year-on-year, primarily due to the strategic phase-out of our cloud service platform business. However, we are encouraged by the sustained growth momentum in overseas markets, with third-party overseas customer revenue up 23.4% in the first three quarters. This demonstrates increasing international recognition of our products and services, resulting from our product upgrades and integration, deepened customer relationships, innovative collaboration models, and overseas expansion. Moreover, we further narrowed year-on-year losses through effective cost control measures. Looking ahead, we remain committed to leveraging AI to strengthen product competitiveness, capture overseas opportunities, and improve operational efficiency to achieve our mid-term profitability goals."