OneConnect Announces Fourth Quarter and Full Year 2024 Unaudited Financial Results
SHENZHEN, China, March 18, 2025 /PRNewswire/ -- OneConnect Financial Technology Co., Ltd. ("OneConnect" or the "Company") (NYSE:OCFT), a leading technology-as-a-service provider for the financial services industry in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights
Revenue from continuing operations[1] was RMB415 million, compared to RMB882 million during the same period last year.
Gross margin of continuing operations was 34.2%, compared to 39.0% during the same period last year; non-IFRS gross margin of continuing operations was 36.5%, compared to 40.8% during the same period last year.
Full Year 2024 Financial Highlights
Revenue from continuing operations was RMB2,248 million, compared to RMB3,522 million for the prior year.
Gross margin of continuing operations was 35.8%, compared to 37.7% for the prior year; non-IFRS gross margin of continuing operations was 38.2%, compared to 40.4% for the prior year.
Net loss from continuing operations attributable to shareholders was RMB669 million, compared to RMB211 million for the prior year. The increased net loss is mainly attributable to (i) an increase in impairment losses of goodwill of approximately RMB132 million, and (ii) a reversal of deferred income tax assets of approximately RMB454 million. Net margin of continuing operations to shareholders was -29.8%, compared to -6.0% for the prior year.
Net loss from continuing operations per basic and diluted ADS was RMB-18.42, compared to RMB-5.82 for the prior year.
Net loss from continuing and discontinued operations attributable to shareholders was RMB460 million, compared to a net loss of RMB363 million for the prior year. Net margin of continuing and discontinued operations to shareholders was -20.4%, compared to -10.3% for the prior year.
Net loss from continuing and discontinued operations per basic and diluted ADS was RMB-12.66, compared to RMB-9.99 for the prior year.
[1] As previously reported, the Company completed the disposal of its virtual bank business (the "discontinued operations") to Lufax Holding Ltd ("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 are now reflected as "discontinued operations" in the Company's condensed consolidated financial information and the historical financial results of the remaining business of the Company are now reflected as "continuing operations" in the Company's condensed consolidated financial information for the fourth quarter and full year ended December 31, 2024, and comparative information has been restated accordingly.
In RMB'000, except percentages and per ADS amounts
Three Months Ended
December 31
Yaer Ended
YoY
December 31
YoY
2024
2023
2024
2023
Continuing operations
Revenue
Revenue from Ping An Group and
Lufax[1]
190,822
561,128
-66.0 %
1,307,064
2,360,108
-44.6 %
Revenue from third-party customers[2]
224,405
320,771
-30.0 %
941,039
1,161,483
-19.0 %
Total
415,227
881,899
-52.9 %
2,248,103
3,521,591
-36.2 %
Gross profit
142,153
343,726
804,497
1,326,017
Gross margin
34.2 %
39.0 %
35.8 %
37.7 %
Non-IFRS gross margin
36.5 %
40.8 %
38.2 %
40.4 %
Operating loss
(147,741)
(45,063)
(303,533)
(217,285)
Operating margin
-35.6 %
-5.1 %
-13.5 %
-6.2 %
Net loss from continuing operations
attributable to shareholders
(569,181)
(46,899)
(669,176)
(211,342)
Net margin of continuing operations to
shareholders
-137.1 %
-5.3 %
-29.8 %
-6.0 %
Loss from continuing operations per
ADS[3], basic and diluted
(15.67)
(1.29)
(18.42)
(5.82)
Net loss from continuing and
discontinued operations attributable to
shareholders
(569,181)
(81,349)
(459,677)
(362,715)
Net margin of continuing and
discontinued operations to shareholders
-137.1 %
-9.2 %
-20.4 %
-10.3 %
Loss from continuing and discontinued
operations per ADS, basic and diluted
(15.67)
(2.24)
(12.66)
(9.99)
[1] Reference is made to the announcement made by Ping An Group on October 21, 2024. Lufax became a subsidiary of Ping An Group on July 30, 2024. Therefore, the Company's revenue from Ping An Group shown in this table included revenue from Lufax since July 30, 2024. Revenue from Lufax for the year ended December 31, 2024 prior to its consolidation into Ping An Group was approximately RMB116 million.
[2] 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.
[3] In RMB. Each ADS represents 30 ordinary shares.
Revenue from Continuing Operations Breakdown
Three Months Ended
Full Year Ended
In RMB'000, except percentages
December 31
YoY
December 31
YoY
2024
2023
2024
2023
Implementation
170,991
216,357
-21.0 %
664,127
834,620
-20.4 %
Transaction-based and support revenue
Business origination services
1,317
23,723
-94.4 %
30,078
132,112
-77.2 %
Risk management services
60,905
92,934
-34.5 %
247,828
320,462
-22.7 %
Operation support services
144,918
194,189
-25.4 %
549,273
861,056
-36.2 %
Cloud services platform
5,051
334,076
-98.5 %
618,088
1,245,952
-50.4 %
Post-implementation support services
19,560
12,839
52.3 %
69,064
52,012
32.8 %
Others
12,485
7,781
60.5 %
69,645
75,377
-7.6 %
Sub-total for transaction-based and support
revenue
244,236
665,542
-63.3 %
1,583,976
2,686,971
-41.0 %
Total Revenue from Continuing Operations
415,227
881,899
-52.9 %
2,248,103
3,521,591
-36.2 %
Revenue from continuing operations was RMB415 million in the fourth quarter of 2024, a decrease of 52.9% from RMB882 million during the same period last year, primarily due to a decrease of RMB329 million in revenue from cloud services platform. Implementation revenue was RMB171 million in the fourth quarter of 2024, a decrease of 21.0% from RMB216 million during the same period last year, mainly due to a decrease in demand for implementation of financial services systems in China. Revenue from business origination services was RMB1 million in the fourth quarter of 2024, a decrease of 94.4% from RMB24 million during the same period last year, primarily due to a decrease in transaction volumes from loan origination systems under digital credit management solutions. Revenue from risk management services was RMB61 million in the fourth quarter of 2024, a decrease of 34.5% from RMB93 million during the same period last year, mainly due to a decrease in transaction volumes from banking related risk analytic solutions. Revenue from operation support services was RMB145 million in the fourth quarter of 2024, a decrease of 25.4% from RMB194 million during the same period last year, primarily due to a shift in business model for a number of auto ecosystem service providers where the Company transitioned from acting as a contractor to a distributor, which impacted revenue recognition. Revenue from cloud services platform was RMB5 million in the fourth quarter of 2024, a decrease of 98.5% from RMB334 million during the same period last year, primarily due to the strategic phasing out of the cloud services since July 2024, details of which were previously disclosed in our announcement dated July 11, 2024 regarding an update on our business operations. Revenue from post-implementation support services was RMB20 million in the fourth quarter of 2024, an increase of 52.3% from RMB13 million during the same period last year, primarily due to increased demand for our post-implementation support services from our overseas customers.
Three Months Ended
Full Year Ended
In RMB'000, except percentages
December 31
YoY
December 31
YoY
2024
2023
2024
2023
Digital Banking segment
92,240
247,131
-62.7 %
459,584
941,901
-51.2 %
Digital Insurance segment
140,962
140,720
0.2 %
542,450
657,213
-17.5 %
Gamma Platform segment
182,025
494,047
-63.2 %
1,246,069
1,922,477
