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OneConnect Reports First-Half 2024 Results with Net Profit Attributable to Shareholders of RMB 139 Million

On August 16, 2024, OneConnect Financial Technology Co., Ltd. (referred to as “OneConnect” or the “Company,” NYSE: OCFT, HKEX: 06638), a leading commercial technology service provider for financial institutions, announced its financial results for the second quarter and first half of 2024, ended June 30.

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Net Profit Attributable to Shareholders: RMB 139 Million


2024 marks a pivotal year for OneConnect as it enters the second phase of its strategic plan, focusing on product upgrades, strengthening customer acquisition, and expanding overseas operations. These initiatives have driven steady growth in third-party revenue, increased gross profit margins, and positioned the company closer to achieving its mid-term profitability goals.


For the first half of 2024, OneConnect’s continuing operations (excluding the virtual banking business) generated revenue of RMB 1.416 billion, with gross margins and adjusted gross margins remaining healthy at 37.1% and 39.4%, respectively. Thanks to a one-time gain from the sale of its virtual banking business in the second quarter, OneConnect reported a net profit attributable to shareholders of RMB 139 million, a year-over-year increase of 173%, with a net profit margin of 9.8%, up 20.2 percentage points from the previous year.


OneConnect’s Chairman and CEO, Shen Chongfeng, noted, “Our profitability improved significantly in the first half of 2024, with overseas business continuing its robust growth. These achievements are a result of our unwavering commitment to our core strategy of ‘product upgrades, deepening customer relationships, and expanding overseas,’ combined with strict cost management, which has greatly enhanced our operational quality and laid a solid foundation for achieving our mid-term profitability targets.”


“Our third-party customer revenue share increased by 2.8 percentage points year-over-year to 33.9% in the first half of 2024. With a diverse and broad product portfolio, we are confident in our ability to achieve our mid-term profitability goals through effective implementation of our business initiatives,” added OneConnect CFO Luo Yongtao.


Overseas Business Sees Double-Digit Growth; Tech Expansion Showing Results


In the first half of 2024, revenue from overseas customers increased by 14.8% year-over-year, with its share of third-party revenue rising to 21.2% (excluding the virtual banking business), up 5.6 percentage points from the previous year. Leveraging its product and technology strengths, OneConnect continued to identify and meet core customer needs by co-developing customized products. The company signed a significant product subscription service contract with a leading Vietnamese bank and reached a multi-million-dollar agreement with a major Southeast Asian financial institution, setting new benchmarks in international cooperation.


Shen Chongfeng highlighted the promising outlook for the global fintech market, especially in regions like Southeast Asia, Hong Kong, South Africa, and the Middle East, where IT spending in financial institutions is growing faster than in mainland China. The potential for banking and insurance technology in these regions is immense, and the rapid growth of overseas business will continue to fuel OneConnect’s overall growth.


To date, OneConnect’s operations span 20 countries and regions, including South Africa, Singapore, Thailand, Malaysia, Indonesia, UAE, the Philippines, and Vietnam, serving 186 overseas financial institutions, including two of the top three regional banks in Southeast Asia and two of the world’s top ten insurance companies.


Empowering Core Customers to Accelerate Digital Transformation in Financial Institutions


Shen Chongfeng emphasized that financial institutions are under increasing pressure and have a growing demand for digital solutions across retail activation, credit risk control, and digitalization in both property and life insurance. In the first half of 2024, OneConnect remained committed to its Phase II strategic goals, focusing on its core financial institution customers and enhancing its product capabilities across its three main business lines: digital banking, digital insurance, and the Gamma Platform. These efforts have empowered financial institutions to improve quality and efficiency, accelerating their digital transformation.


For banking retail operations, OneConnect is centered on customer-centric, data-driven, and AI-assisted strategies to help banks manage their retail businesses intelligently. In the first half of 2024, the digital retail business secured 40 new customers. For example, OneConnect partnered with Guangzhou Rural Commercial Bank to advance the digital transformation of its wealth management business, providing professional, scenario-based, and personalized services to its wealth management clients, and enhancing the bank’s service processes and innovation capabilities. The company also won a retail marketing management consulting project with a city commercial bank with over a trillion yuan in assets, collaborating to drive the bank’s digital retail transformation, improving operational efficiency and customer satisfaction.


For banking credit operations, OneConnect provides data and risk control products, incorporating Ping An’s AI large model technology to build an end-to-end, flexible, and iterative intelligent credit system. This system has helped customers improve business process efficiency by over 40% and enhanced AI-driven risk control capabilities by 50%. In the first half of the year, the digital credit business signed 23 new customers. OneConnect is also promoting its intelligent credit system, which has been validated in the domestic market, to international markets, where it has already seen widespread adoption in Southeast Asia.


In digital insurance, OneConnect continues to implement the SaaS deployment of its end-to-end system for property insurance, partnering with more than ten insurance institutions to create benchmark cases. These cases include solving pain points in claims, underwriting, and services for a state-owned property insurance company, achieving goals such as strengthening claims risk control, improving underwriting quality, and enhancing customer experience. In life insurance, nine new customers were signed in the first half, and the overseas life insurance agent product has been well received. In partnership with Old Mutual, OneConnect helped the client improve customer acquisition efficiency by over 20% and performance management efficiency by over 20%.


The Gamma Platform is focused on AI, empowering banks’ retail and credit operations in scenarios such as intelligent risk control and operational efficiency. The platform signed 115 new customers in the first half of 2024. For example, the AI video underwriting robot deployed in customers’ operations processed automated loan approvals exceeding billions of yuan, saved over two million yuan in labor costs, and intercepted more than one million yuan in fraudulent loans.


Awards and Honors: Commitment to Sustainable Development


In the first half of 2024, OneConnect received nine awards from various institutions, bringing its total to 314. The company’s brand strength has been widely recognized. On May 28, at the 14th China Overseas Investment Cooperation Fair, OneConnect was named one of the “Top 50 Chinese Companies for Overseas Services” for its outstanding performance in international markets and influence in the global fintech field.


Additionally, in April this year, OneConnect released its “2023 ESG Report” for the second consecutive year, showcasing the company’s approach, policies, practices, and key performance indicators in managing ESG risks and opportunities. Looking ahead, the company’s board of directors will continue to discuss further goals and progress, refining its ESG management strategies and practices in line with shareholder expectations and operational realities, and continuously improving the company’s ESG management and performance.


The 20th Central Committee of the Communist Party of China’s Third Plenary Session approved a decision that outlines several directives, including “accelerating the establishment of a system and mechanism that promotes digital economy development,” “accelerating the advancement of new industrialization,” and “establishing a mechanism to maintain a reasonable proportion of manufacturing investments,” all aimed at fostering deeper integration of digital technology and the real economy.


Promoting the deep integration of the digital economy and the real economy is an essential requirement for high-quality development and building a modern industrial system. As an important technological conduit of the Ping An Group, OneConnect is tasked with advancing new productive forces in the financial industry, focusing on enhancing product capabilities in its three main business lines: digital banking, digital insurance, and the Gamma Platform. This effort is laying the groundwork for the development of new productive forces in the financial sector.


Shen Chongfeng stated, “As we progress through 2024, we are witnessing the deepening of the technology revolution and industrial transformation. Artificial intelligence, as an emerging core productive force, is accelerating high-quality development across all sectors, especially in the financial industry. We firmly believe that the financial sector will be a critical battleground for the implementation of the ‘AI+’ strategy, driving the development of new productive forces. OneConnect will continue to drive innovation through technology, focusing on product upgrade


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