UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2023
Commission File Number: 001-39147
ONECONNECT FINANCIAL TECHNOLOGY CO., LTD.
(Registrant’s Name)
10-14F, Block A, Platinum Towers
No.1 Tairan 7th Road, Futian District
Shenzhen, Guangdong, 518000
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
EXHIBIT INDEX
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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OneConnect Financial Technology Co., Ltd. |
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By: |
/s/ Chongfeng Shen |
|
Name: |
Chongfeng Shen |
|
Title: |
Chairman of the Board and Chief Executive Officer |
|
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Date: August 16, 2023 |
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Exhibit 99.1
OneConnect Announces Second Quarter and First
Half 2023 Unaudited Financial Results
Gross Margin Remained Stable and Net Margin
to Shareholders Improved by 13.2ppt YoY for Second Quarter 2023
SHENZHEN, China — (PR NEWSWIRE) —
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 second quarter and half year ended June 30, 2023.
Second Quarter 2023 Financial Highlights
| · | Revenue
was RMB973 million as compared to RMB1,134 million for the same period of the prior year. |
| · | Gross
margin remained stable at 36.2%, the same for the same period of the prior year; non-IFRS
gross margin decreased slightly to 39.3% as compared to 40.0% for the same period of the
prior year. |
| · | Operating
loss narrowed 71.7% to RMB79 million, as compared to RMB278 million for the same period of
the prior year. Operating margin narrowed to 8.1% from 24.5% for the same period of the prior
year. |
| · | Net
loss attributable to shareholders narrowed by 66.7% to RMB82 million, as compared to RMB245
million for the same period of the prior year. Net margin to shareholders improved by 13.2
percentage points to -8.4% as compared to -21.6% for the same period of the prior year. |
| · | Net
loss per ADS, basic and diluted, was RMB-2.25 as compared to RMB-6.70 for the same period
of the prior year. |
In RMB’000, except percentages and per | |
Three Months
Ended
June 30 | | |
| | |
Six Months
Ended
June 30 | | |
| |
ADS amounts | |
2023 | | |
2022 | | |
YoY | | |
2023 | | |
2022 | | |
YoY | |
Revenue | |
| | |
| | |
| | |
| | |
| | |
| |
Revenue
from Ping An Group | |
580,795 | | |
682,600 | | |
-14.9 | % | |
1,117,649 | | |
1,231,282 | | |
-9.2 | % |
Revenue from Lufax | |
73,142 | | |
107,363 | | |
-31.9 | % | |
144,499 | | |
236,463 | | |
-38.9 | % |
Revenue
from third-party customers1 | |
319,463 | | |
343,802 | | |
-7.1 | % | |
637,198 | | |
684,958 | | |
-7.0 | % |
Total | |
973,400 | | |
1,133,765 | | |
-14.1 | % | |
1,899,346 | | |
2,152,703 | | |
-11.8 | % |
Gross profit | |
352,824 | | |
410,252 | | |
| | |
696,233 | | |
759,283 | | |
| |
Gross margin | |
36.2 | % | |
36.2 | % | |
| | |
36.7 | % | |
35.3 | % | |
| |
Non-IFRS gross margin | |
39.3 | % | |
40.0 | % | |
| | |
39.8 | % | |
39.4 | % | |
| |
Operating loss | |
(78,528 | ) | |
(277,618 | ) | |
| | |
(192,939 | ) | |
(632,513 | ) | |
| |
Operating margin | |
-8.1 | % | |
-24.5 | % | |
| | |
-10.2 | % | |
-29.4 | % | |
| |
Net loss to shareholders | |
(81,592 | ) | |
(244,789 | ) | |
| | |
(190,465 | ) | |
(562,374 | ) | |
| |
Net margin to shareholders | |
-8.4 | % | |
-21.6 | % | |
| | |
-10.0 | % | |
-26.1 | % | |
| |
Net
loss per ADS2, basic and diluted | |
(2.25 | ) | |
(6.70 | ) | |
| | |
(5.24 | ) | |
(15.29 | ) | |
| |
Chairman, CEO and CFO Comments
“I am delighted to announce that we delivered
a strong second quarter, showcasing resilience in our operational outcomes.” said Mr. Shen Chongfeng, Chairman of the Board
and Chief Executive Officer. “We continued to implement our second stage strategy of deepening customer engagement to focus on
serving premium-plus customers and product integration in the second quarter of 2023. The era of digitization for financial institutions
has come. In February 2023, China has rolled out a plan for the overall layout of the country's digital development. According to
a forecast by the China Academy of Information and Communications Technology, financial institutions are increasingly embracing digital
transformation in their strategic plans and ramping up investment. China's digital economy is expected to surpass RMB60 trillion (USD8.84
trillion) by 2025. Although we still experienced pressure on revenue in the first half of 2023 due to the lagging effect of businesses’
recovery, we believe the macro-economic indicators are showing positive signals, making us cautiously optimistic about our business outlook.
We are closely monitoring the macro-economic conditions and we will keep focus on our strategy execution to capture new opportunities
by leveraging our strengths.
1 Third-party customers refer to each customer with revenue
contribution of less than 5% of our total revenue in the relevant period. These customers are a key focus of the Company’s diversification
strategy.
2 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.
Mr. Shen Chongfeng further commented, “As
we continue to execute our second stage strategy, we are reaping benefits by broadening collaboration with financial institutions through
products upgrade. In the first half of 2023, we further optimized our products in algorithm model, architecture structure to maintain
competitive advantage in the market. We had further breakthrough in self-controlled technology, where we received 4 accreditations. For
example, our digital lending comprehensive financial inclusion solution was awarded “2022 China Best Supplier of Financial Technology”
in the 3rd Yangtze River Delta Fintech Innovation & Application Global Competition. Meanwhile, we continued to deepen our cooperation
with several large banks through multiple-phases projects. As we move into the third quarter, we will continue our efforts in improving
delivery efficiency and products capability to address customers’ evolving needs. Our overseas business continued its growth momentum
in the first half of 2023, with virtual bank in Hong Kong recording 45.2% year-over-year revenue increase. In May 2023, we further
deepened our cooperation with SB Finance, helping SB Finance to enhance product delivery efficiency, and reduce operational costs and
downtime. This collaboration marks a significant milestone in establishing a long-term and close strategic partnership between us and
SB Finance. In the first half of 2023, we continued to deepen our strategic collaboration with Old Mutual through universal agent solution.
This solution helps agents of Old Mutual in South Africa market improve service efficiency and conversion rate of potential customers,
which contributed to their success in the market. We will continue capture the growing overseas demand for digital transformation and
seize the opportunities that arise.”
Mr. Luo Yongtao, Chief Financial Officer,
commented, “As we continued our product integration and deepening engagement with premium-plus customers, our gross margin witnessed
a steady improvement in the first half of 2023. Gross margin increased year-over-year from 35.3% to 36.7%, and non-IFRS gross margin increased
year-over-year from 39.4% to 39.8% in the first half of 2023. Our net margin to shareholders improved by 16.1 percentage points year-over-year
from -26.1% to -10.0%. In 2023, we will continue our focus on improving net margin to shareholders for long-term sustainable growth. Our
first half results reflect the effects of our disciplined execution of cost control, and improved operational efficiency, marking
another milestone in the path to profitability. As we move into the third quarter, third-party revenue and cost structure optimization
remain to be our priority. Our consistent management efforts should continue to benefit our profitability in the long run.”
Revenue Breakdown
| |
Three Months Ended
June 30 | | |
| | |
Six Months Ended
June 30 | | |
| |
In RMB’000, except
percentages | |
2023 | | |
2022 | | |
YoY | | |
2023 | | |
2022 | | |
YoY | |
Technology Solution Segment3 | |
| | |
| | |
| | |
| | |
| | |
| |
Implementation | |
233,089 | | |
170,933 | | |
36.4 | % | |
443,023 | | |
342,611 | | |
29.3 | % |
Transaction-based and support revenue | |
| | |
| | |
| | |
| | |
| | |
| |
Business origination services | |
32,081 | | |
104,701 | | |
-69.4 | % | |
81,127 | | |
219,494 | | |
-63.0 | % |
Risk management services | |
72,574 | | |
91,546 | | |
-20.7 | % | |
150,317 | | |
198,497 | | |
-24.3 | % |
Operation support services | |
249,040 | | |
316,897 | | |
-21.4 | % | |
471,585 | | |
572,105 | | |
-17.6 | % |
Cloud services platform | |
322,373 | | |
369,373 | | |
-12.7 | % | |
614,620 | | |
665,207 | | |
-7.6 | % |
Post-implementation support services | |
13,308 | | |
15,367 | | |
-13.4 | % | |
25,649 | | |
26,794 | | |
-4.3 | % |
Others | |
16,694 | | |
40,441 | | |
-58.7 | % | |
46,664 | | |
82,295 | | |
-43.3 | % |
Sub-total for transaction-based and support revenue | |
706,070 | | |
938,325 | | |
-24.8 | % | |
1,389,962 | | |
1,764,392 | | |
-21.2 | % |
Sub-total | |
939,159 | | |
1,109,258 | | |
-15.3 | % | |
1,832,985 | | |
2,107,003 | | |
-13.0 | % |
Virtual Bank Business | |
| | |
| | |
| | |
| | |
| | |
| |
Interest and commission | |
34,241 | | |
24,507 | | |
39.7 | % | |
66,361 | | |
45,700 | | |
45.2 | % |
Total | |
973,400 | | |
1,133,765 | | |
-14.1 | % | |
1,899,346 | | |
2,152,703 | | |
-11.8 | % |
3 Intersegment eliminations and adjustments
are included under technology solution segment.
Revenue in the second quarter of 2023 decreased
by 14.1% to RMB973 million from RMB1,134 million for the same period in the prior year, primarily due to a decline in transaction-based
and support revenue. Implementation revenue increased by 36.4% on a year-over-year basis to RMB233 million, mainly contributed by projects
from new customers as well as consistent delivery efforts on existing contracts, especially expanding customer demand for digitalized
management in the second quarter. Revenue from business origination services decreased by 69.4% on a year-over-year basis to RMB32 million,
primarily due to declined transaction volumes. Revenue from risk management services decreased by 20.7% on a year-over-year basis to RMB73
million, mainly due to reduced transaction volume in banking related risk analytics solutions because of slower-than-expected recovery
of banking activities. Revenue from operation support services decreased by 21.4% on a year-over-year basis to RMB249 million, which was
primarily caused by reduced demand for banking customer services operation products and auto ecosystem services in the second quarter.
Revenue from cloud services platform was RMB322 million, decreased by 12.7% on a year-over-year basis, mainly due to reduced transaction
volume. Our Overseas business continued its strong growth momentum in the second quarter 2023. Revenue from Ping An OneConnect Bank, our
Virtual Banking business in Hong Kong, increased by 39.7% to RMB34 million as compared to the second quarter last year.
| |
Three Months Ended June 30 | | |
| | |
Six Months Ended June 30 | | |
| |
In RMB’000, except
percentages | |
2023 | | |
2022 | | |
YoY | | |
2023 | | |
2022 | | |
YoY | |
Digital Banking segment | |
235,332 | | |
355,927 | | |
-33.9 | % | |
494,069 | | |
743,010 | | |
-33.5 | % |
Digital Insurance segment | |
190,587 | | |
203,696 | | |
-6.4 | % | |
367,244 | | |
387,759 | | |
-5.3 | % |
Gamma Platform segment | |
513,240 | | |
549,635 | | |
-6.6 | % | |
971,671 | | |
976,234 | | |
-0.5 | % |
Virtual Bank Business segment | |
34,242 | | |
24,508 | | |
39.7 | % | |
66,361 | | |
45,700 | | |
45.2 | % |
Total | |
973,400 | | |
1,133,765 | | |
-14.1 | % | |
1,899,346 | | |
2,152,703 | | |
-11.8 | % |
Revenue from Gamma Platform segment, decreased
by 6.6% to RMB513 million on year-over-year basis, contributing 52.7% of the total revenue, mainly caused by reduced transaction volume
of our cloud service platform. Revenue from Digital Banking segment decreased by 33.9% to RMB235 million in the second quarter of 2023
from RMB356 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 initiative to phase out low value products and the unfavorable macro circumstances.
Revenue from Digital Insurance segment decreased by 6.4% to RMB191 million in the second quarter of 2023 from RMB204 million for the same
period in the prior year, primarily due to reduced demand in auto ecosystem services. In addition, revenue from Virtual Banking Business
segment increased by 39.7% to RMB34 million from RMB25 million for the same period last year.
Second Quarter 2023 Financial Results
Revenue
Revenue in the second
quarter of 2023 decreased by 14.1% to RMB973 million from RMB1,134 million for the same period in the prior year, primarily driven by
the decline in transaction-based and support revenue due to reduced transaction volume and customer demand.
Cost of Revenue
Cost of revenue in the
second quarter of 2023 decreased by 14.2% to RMB621 million from RMB724 million for the same period in the prior year, primarily due to
decreased revenue and associated technology service fees and business origination fees.
Gross Profit
Gross profit in the second
quarter of 2023 decreased to RMB353 million from RMB410 million for the same period in the prior year. Gross margin remained stable at
36.2% in the second quarter of 2023 and the same period in the prior year. Non-IFRS gross margin decreased to 39.3% from 40.0% for the
same period in the prior year due to less amortization of intangible asset recognized. For a reconciliation of the Company’s IFRS
and non-IFRS gross margin, please refer to “Reconciliation of IFRS and Non-IFRS Results (Unaudited).”
Operating Loss and
Expenses
Total operating expenses
for the second quarter of 2023 decreased to RMB440 million, compared with RMB678 million for the same period in the prior year, primarily
driven by decreased labor cost in employee benefits expenses and labor outsourcing to further improve profitability. As a percentage of
revenue, total operating expenses decreased by 14.5 percentage points to 45.3% from 59.8%.
| · | Research and Development expenses for
the second quarter of 2023 decreased to RMB240 million from RMB378 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 decreased
to 24.7%, compared with 33.3% in the prior year. |
| · | Sales and Marketing expenses for
the second quarter of 2023 decreased to RMB65 million, compared with RMB109 million in the prior year, mainly due to a decrease in marketing
and advertising expense and a decrease in labor cost in employee benefits expenses. As a percentage of revenue, sales and marketing expenses
decreased to 6.7% from 9.7%. |
| · | General and Administrative expenses for
the second quarter of 2023 decreased to RMB135 million from RMB191 million in the prior year, primarily due to stringent cost control
measures and our continued transformation efforts. As a percentage of revenue, general and administrative expenses decreased to 13.9%
from 16.8%. |
Loss from operations
for the second quarter of 2023 narrowed notably to RMB79 million, compared with RMB278 million for the same period in the prior year.
Operating margin improved to 8.1% from 24.5% in the prior year.
Net Loss Attributable
to Shareholders
Net loss attributable
to OneConnect’s shareholders totaled RMB82 million for the second quarter of 2023, versus RMB245 million for the same period in
the prior year. Net loss attributable to OneConnect’s shareholders per basic and diluted ADS decreased to RMB-2.25, versus
RMB-6.70 for the same period in the prior year. Weighted average number of ADSs for the second quarter was 36,319,638.
Cash Flow
For the second quarter of 2023, net cash used
in operating activities was RMB20 million. Net cash used in investing activities was RMB109 million. Net cash used in financing activities
was RMB45 million.
Conference Call Information
Date/Time |
Wednesday, August 16, 2023 at 8:00 a.m., U.S. Eastern Time
Wednesday, August 16, 2023 at 8:00 p.m., Beijing Time |
Online registration |
https://www.netroadshow.com/events/login?show=d269d5c7&confId=53982 |
The financial results and an archived transcript
will be available at OneConnect’s investor relations website at ir.ocft.com.
About 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.
For more information, please visit 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 with Ping An Group, which is 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; the duration of the COVID-19 outbreak, lagging
effect of businesses’ recovery and its potential impact on the Company’s business and financial performance; 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.
Use of Unaudited Non-IFRS Financial Measures
The unaudited consolidated financial information
is prepared in accordance with International Financial Reporting Standards (IFRS). 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
(Unaudited)” set forth at the end of this press release.
Contacts
Investor Relations:
OCFT IR Team
OCFT_IR@ocft.com
Media Relations:
Frank Fu
pub_jryztppxcb@pingan.com.cn
ONECONNECT
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(Unaudited)
| |
Three Months Ended
June 30 | | |
Six Months Ended
June 30 | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
RMB'000 | | |
RMB'000 | | |
RMB'000 | | |
RMB'000 | |
Revenue | |
| 973,400 | | |
| 1,133,765 | | |
| 1,899,346 | | |
| 2,152,703 | |
- Technology Solution | |
| 939,159 | | |
| 1,109,258 | | |
| 1,832,985 | | |
| 2,107,003 | |
- Virtual Bank Business | |
| 34,241 | | |
| 24,507 | | |
| 66,361 | | |
| 45,700 | |
Cost of revenue | |
| (620,576 | ) | |
| (723,513 | ) | |
| (1,203,113 | ) | |
| (1,393,420 | ) |
Gross profit | |
| 352,824 | | |
| 410,252 | | |
| 696,233 | | |
| 759,283 | |
| |
| | | |
| | | |
| | | |
| | |
Research and development expenses | |
| (240,348 | ) | |
| (377,500 | ) | |
| (528,039 | ) | |
| (740,513 | ) |
Selling and marketing expenses | |
| (65,220 | ) | |
| (109,435 | ) | |
| (129,252 | ) | |
| (218,342 | ) |
General and administrative expenses | |
| (134,916 | ) | |
| (190,620 | ) | |
| (242,118 | ) | |
| (401,921 | ) |
Net impairment losses on financial and contract assets | |
| (11,437 | ) | |
| 2,289 | | |
| (38,643 | ) | |
| (14,925 | ) |
Other income, gains or loss-net | |
| 20,569 | | |
| (12,604 | ) | |
| 48,880 | | |
| (16,095 | ) |
Operating loss | |
| (78,528 | ) | |
| (277,618 | ) | |
| (192,939 | ) | |
| (632,513 | ) |
| |
| | | |
| | | |
| | | |
| | |
Finance income | |
| 5,726 | | |
| 2,790 | | |
| 11,516 | | |
| 5,236 | |
Finance costs | |
| (5,432 | ) | |
| (7,537 | ) | |
| (11,698 | ) | |
| (19,661 | ) |
Finance costs – net | |
| 294 | | |
| (4,747 | ) | |
| (182 | ) | |
| (14,425 | ) |
Share of gains of associate and joint venture - net | |
| - | | |
| 8,765 | | |
| 7,157 | | |
| 20,302 | |
Impairment charges on associates | |
| - | | |
| - | | |
| (7,157 | ) | |
| - | |
Loss before income tax | |
| (78,234 | ) | |
| (273,600 | ) | |
| (193,121 | ) | |
| (626,636 | ) |
| |
| | | |
| | | |
| | | |
| | |
Income tax (expense)/benefit | |
| (7,274 | ) | |
| 15,716 | | |
| (5,402 | ) | |
| 36,444 | |
| |
| | | |
| | | |
| | | |
| | |
Loss for the period | |
| (85,508 | ) | |
| (257,884 | ) | |
| (198,523 | ) | |
| (590,192 | ) |
| |
| | | |
| | | |
| | | |
| | |
Loss attributable to: | |
| | | |
| | | |
| | | |
| | |
- Owners of the Company | |
| (81,592 | ) | |
| (244,789 | ) | |
| (190,465 | ) | |
| (562,374 | ) |
- Non-controlling interests | |
| (3,916 | ) | |
| (13,095 | ) | |
| (8,058 | ) | |
| (27,818 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other comprehensive income, net of tax | |
| | | |
| | | |
| | | |
| | |
Items that may be subsequently reclassified to profit or loss | |
| | | |
| | | |
| | | |
| | |
- Foreign currency translation differences | |
| 32,224 | | |
| 256,914 | | |
| 17,370 | | |
| 233,721 | |
- Changes in the fair value of debt instruments at fair value through other comprehensive income | |
| 4,781 | | |
| (8,810 | ) | |
| 1,057 | | |
| 3,713 | |
Item that will not be reclassified subsequently to profit or loss | |
| | | |
| | | |
| | | |
| | |
- Foreign currency translation differences | |
| 74,846 | | |
| | | |
| 44,191 | | |
| | |
Total comprehensive income/(loss) for the period | |
| 26,343 | | |
| (9,780 | ) | |
| (135,905 | ) | |
| (352,758 | ) |
| |
| | | |
| | | |
| | | |
| | |
Total comprehensive income/(loss) attributable to: | |
| | | |
| | | |
| | | |
| | |
- Owners of the Company | |
| 30,259 | | |
| 3,315 | | |
| (127,847 | ) | |
| (324,940 | ) |
- Non-controlling interests | |
| (3,916 | ) | |
| (13,095 | ) | |
| (8,058 | ) | |
| (27,818 | ) |
| |
| | | |
| | | |
| | | |
| | |
Loss per ADS attributable to owners of the Company | |
| | | |
| | | |
| | | |
| | |
(expressed in RMB per share) | |
| | | |
| | | |
| | | |
| | |
- Basic and diluted | |
| (2.25 | ) | |
| (6.70 | ) | |
| (5.24 | ) | |
| (15.29 | ) |
ONECONNECT
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| |
June 30 | | |
December 31 | |
| |
2023 | | |
2022 | |
| |
RMB'000 | | |
RMB'000 | |
ASSETS | |
| | | |
| | |
Non-current assets | |
| | | |
| | |
Property and equipment | |
| 116,782 | | |
| 151,401 | |
Intangible assets | |
| 526,225 | | |
| 570,436 | |
Deferred tax assets | |
| 768,277 | | |
| 765,959 | |
Investments accounted for using the equity method | |
| - | | |
| 199,200 | |
Financial assets measured at fair value through other comprehensive income | |
| 816,573 | | |
| 821,110 | |
Total non-current assets | |
| 2,227,857 | | |
| 2,508,106 | |
| |
| | | |
| | |
Current assets | |
| | | |
| | |
Trade receivables | |
| 1,190,632 | | |
| 940,989 | |
Contract assets | |
| 100,890 | | |
| 122,628 | |
Prepayments and other receivables | |
| 1,097,715 | | |
| 1,078,604 | |
Financial assets measured at amortized cost from virtual bank | |
| 2,377 | | |
| 44 | |
Financial assets measured at fair value through other comprehensive income | |
| 1,310,160 | | |
| 1,233,431 | |
Financial assets at fair value through profit or loss | |
| 771,828 | | |
| 690,627 | |
Derivative financial assets | |
| 59,631 | | |
| 56,363 | |
Restricted cash and time deposits over three months | |
| 202,136 | | |
| 343,814 | |
Cash and cash equivalents | |
| 1,519,513 | | |
| 1,907,776 | |
Total current assets | |
| 6,254,882 | | |
| 6,374,276 | |
Total assets | |
| 8,482,739 | | |
| 8,882,382 | |
| |
| | | |
| | |
EQUITY AND LIABILITIES | |
| | | |
| | |
Equity | |
| | | |
| | |
Share capital | |
| 78 | | |
| 78 | |
Shares held for share incentive scheme | |
| (149,544 | ) | |
| (149,544 | ) |
Other reserves | |
| 11,017,947 | | |
| 10,953,072 | |
Accumulated losses | |
| (7,701,364 | ) | |
| (7,510,899 | ) |
Equity attributable to equity owners of the Company | |
| 3,167,117 | | |
| 3,292,707 | |
| |
| | | |
| | |
Non-controlling interests | |
| (18,276 | ) | |
| (14,652 | ) |
| |
| | | |
| | |
Total equity | |
| 3,148,841 | | |
| 3,278,055 | |
| |
| | | |
| | |
LIABILITIES | |
| | | |
| | |
Non-current liabilities | |
| | | |
| | |
Trade and other payables | |
| 123,916 | | |
| 132,833 | |
Contract liabilities | |
| 18,546 | | |
| 19,977 | |
Deferred tax liabilities | |
| 3,637 | | |
| 5,196 | |
Total non-current liabilities | |
| 146,099 | | |
| 158,006 | |
| |
| | | |
| | |
Current liabilities | |
| | | |
| | |
Trade and other payables | |
| 2,409,360 | | |
| 2,531,273 | |
Payroll and welfare payables | |
| 317,590 | | |
| 431,258 | |
Contract liabilities | |
| 139,701 | | |
| 166,650 | |
Short-term borrowings | |
| 256,418 | | |
| 289,062 | |
Customer deposits | |
| 1,972,532 | | |
| 1,929,183 | |
Other financial liabilities from virtual bank | |
| 92,198 | | |
| 89,327 | |
Derivative financial liabilities | |
| - | | |
| 9,568 | |
Total current liabilities | |
| 5,187,799 | | |
| 5,446,321 | |
Total liabilities | |
| 5,333,898 | | |
| 5,604,327 | |
| |
| | | |
| | |
Total equity and liabilities | |
| 8,482,739 | | |
| 8,882,382 | |
ONECONNECT
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
| |
Three Months Ended
June 30 | | |
Six Months Ended
June 30 | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
RMB'000 | | |
RMB'000 | | |
RMB'000 | | |
RMB'000 | |
Net cash (used in) / generated from operating activities | |
| (19,650 | ) | |
| 325,638 | | |
| (632,914 | ) | |
| (793,056 | ) |
Net cash (used in) / generated from investing activities | |
| (108,947 | ) | |
| (42,373 | ) | |
| 298,119 | | |
| 1,507,894 | |
Net cash (used in) financing activities | |
| (44,480 | ) | |
| (135,237 | ) | |
| (88,901 | ) | |
| (692,275 | ) |
Net (decrease) / increase in cash and cash equivalents | |
| (173,077 | ) | |
| 148,028 | | |
| (423,696 | ) | |
| 22,563 | |
Cash and cash equivalents at the beginning of the period | |
| 1,646,431 | | |
| 1,270,695 | | |
| 1,907,776 | | |
| 1,399,370 | |
Effects of exchange rate changes on cash and cash equivalents | |
| 46,159 | | |
| 26,335 | | |
| 35,433 | | |
| 23,125 | |
Cash and cash equivalents at the end of period | |
| 1,519,513 | | |
| 1,445,058 | | |
| 1,519,513 | | |
| 1,445,058 | |
ONECONNECT
RECONCILIATION OF IFRS
AND NON-IFRS RESULTS
(Unaudited)
| |
Three Months Ended
June 30 | | |
Six Months Ended
June 30 | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
RMB'000 | | |
RMB'000 | | |
RMB'000 | | |
RMB'000 | |
Gross profit | |
| 352,824 | | |
| 410,252 | | |
| 696,233 | | |
| 759,283 | |
Gross margin | |
| 36.2 | % | |
| 36.2 | % | |
| 36.7 | % | |
| 35.3 | % |
Non-IFRS adjustment | |
| | | |
| | | |
| | | |
| | |
Amortization of intangible assets recognized in cost of revenue | |
| 26,623 | | |
| 41,431 | | |
| 55,165 | | |
| 85,867 | |
Depreciation of property and equipment recognized in cost of revenue | |
| 2,011 | | |
| 748 | | |
| 3,365 | | |
| 1,560 | |
Share-based compensation expenses recognized in cost of revenue | |
| 900 | | |
| 542 | | |
| 1,336 | | |
| 1,422 | |
Non-IFRS Gross profit | |
| 382,358 | | |
| 452,973 | | |
| 756,099 | | |
| 848,132 | |
Non-IFRS Gross margin | |
| 39.3 | % | |
| 40.0 | % | |
| 39.8 | % | |
| 39.4 | % |
Source: OneConnect Financial Technology Co., Ltd.
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