SHENZHEN, China, May 28, 2025 /PRNewswire/ — OneConnect Financial Technology Co., Ltd. (“OneConnect” or the “Company”) (NYSE: OCFT and HKEX: 6638), a leading technology-as-a-service provider for the financial services industry in China, today announced its unaudited financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights
Revenue from continuing operations[1] was RMB368 million, compared to RMB723 million during the same period last year.
Gross margin of continuing operations was 28.5%, compared to 37.7% during the same period last year.
Loss from continuing operations attributable to shareholders was RMB38 million, compared to RMB54 million during the same period last year. Net margin of continuing operations to shareholders was -10.4%, compared to -7.4% during the same period last year.
Loss from continuing operations per basic and diluted ADS was RMB-1.06, compared to RMB-1.48 during the same period last 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 first quarter ended March 31, 2025, and comparative information has been restated accordingly.
In RMB’000, except percentages
and per ADS amounts
Three Months Ended
March 31
YoY
2025
2024
Continuing operations
Revenue
Revenue from Ping An Group and
Lufax[1]
157,542
480,052
-67.2 %
Revenue from third-party customers[2]
210,236
243,218
-13.6 %
Total
367,778
723,270
-49.2 %
Gross profit
104,914
272,403
Gross margin[4]
28.5 %
37.7 %
Operating loss
(56,263)
(66,348)
Operating margin[4]
-15.3 %
-9.2 %
Loss from continuing operations
attributable to shareholders
(38,362)
(53,696)
Net margin of continuing operations to
shareholders[4]
-10.4 %
-7.4 %
Loss from continuing operations per
ADS[3], basic and diluted
(1.06)
(1.48)
Loss from continuing and discontinued
operations attributable to shareholders
(38,362)
(104,334)
Net margin of continuing and
discontinued operations to shareholders[4]
-10.4 %
-14.4 %
Loss from continuing and discontinued
operations per ADS, basic and diluted
(1.06)
(2.87)
[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 quarter ended March 31, 2024 was approximately RMB58 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.
[4] Gross margin from is calculated as gross profit divided by total revenue for the period. Operating margin is calculated as operating profit/(loss) divided by total revenue for the period. Net margin to shareholders is calculated as the profit/(loss) attributable to shareholders divided by total revenue for the period.
Revenue from Continuing Operations Breakdown
Three Months Ended
In RMB’000, except percentages
March 31
YoY
2025
2024
Implementation
142,952
157,459
-9.2 %
Transaction-based and support revenue
Business origination services
5,237
12,835
-59.2 %
Risk management services
55,105
65,483
-15.8 %
Operation support services
121,708
134,062
-9.2 %
Cloud services platform
1,692
318,307
-99.5 %
Post-implementation support services
19,925
14,921
33.5 %
Others
21,159
20,203
4.7 %
Sub-total for transaction-based and support
revenue
224,826
565,811
-60.3 %
Total Revenue from Continuing Operations
367,778
723,270
-49.2 %
Revenue from continuing operations was RMB368 million in the first quarter of 2025, a decrease of 49.2% from RMB723 million during the same period last year, primarily due to a decrease of RMB317 million in revenue from cloud services platform. Implementation revenue was RMB143 million in the first quarter of 2025, a decrease of 9.2% from RMB157 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 RMB5 million in the first quarter of 2025, a decrease of 59.2% from RMB13 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 RMB55 million in the first quarter of 2025, a decrease of 15.8% from RMB65 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 RMB122 million in the first quarter of 2025, a decrease of 9.2% from RMB134 million during the same period last year, primarily due to decreased revenue from AI customer service solution. Revenue from cloud services platform was RMB2 million in the first quarter of 2025, a decrease of 99.5% from RMB318 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 first quarter of 2025, an increase of 33.5% from RMB15 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
In RMB’000, except percentages
March 31
YoY
2025
2024
Digital Banking segment
103,973
161,553
-35.6 %
Digital Insurance segment
142,601
131,886
8.1 %
Gamma Platform segment
121,204
429,830
-71.8 %
Total Revenue from Continuing
Operations
367,778
723,270
-49.2 %
Revenue from Gamma Platform segment was RMB121 million in the first quarter of 2025, a decrease of 71.8% from RMB430 million during the same period last year, primarily due to the strategic phasing out of cloud services. Revenue from Digital Banking segment was RMB104 million in the first quarter of 2025, a decrease of 35.6% from RMB162 million during the same period last year, mainly due to a decrease in transaction volumes from business origination and risk management services. Revenue from Digital Insurance segment was RMB143 million in the first quarter of 2025, an increase of 8.1% from RMB132 million during the same period last year, mainly due to an increased demand for digital property and casualty insurance solutions.
First Quarter 2025 Financial Results
Revenue from Continuing Operations
Revenue from continuing operations was RMB368 million in the first quarter of 2025, a decrease of 49.2% from RMB723 million during the same period last year, primarily due to a decrease in revenue from cloud services platform.
Cost of Revenue from Continuing Operations
Cost of revenue from continuing operations was RMB263 million in the first quarter of 2025, a decrease of 41.7% from RMB451 million during the same period last year, which was mainly due to revenue decrease.
Gross Profit from Continuing Operations
Gross profit from continuing operations was RMB105 million in the first quarter of 2025, compared to RMB272 million during the same period last year. Gross margin of continuing operations was 28.5%, compared to 37.7% in the prior year. The decrease in gross margin of continuing operations was mainly due to reduction in economies of scale caused by the decrease in revenue.
Operating Loss and Expenses from Continuing Operations
Total operating expenses from continuing operations were RMB156 million in the first quarter of 2025, compared to RMB342 million during the same period last year. As a percentage of revenue, total operating expenses from continuing operations decreased by 5.0ppt to 42.3% from 47.3% during the same period last year.
Research and Development expenses from continuing operations were RMB62 million in the first quarter of 2025, compared to RMB213 million during the same period last year. The decline was mainly due to the Company’s proactive adjustment of its business structure and its return on investment driven approach to manage research and development projects. As a percentage of revenue, research and development expenses from continuing operations decreased to 16.7% from 29.5% in the prior year.
Sales and Marketing expenses from continuing operations were RMB46 million in the first quarter of 2025, compared to RMB49 million during the same period last year. The decline was mainly due to a decrease in personnel costs and advertising expenses. As a percentage of revenue, sales and marketing expenses from continuing operations increased to 12.6% from 6.7% in the prior year.
General and Administrative expenses from continuing operations were RMB48 million in the first quarter of 2025, compared to RMB81 million during the same period last year. The decline was mainly due to a decrease in personnel costs. As a percentage of revenue, general and administrative expenses from continuing operations increased to 13.0% from 11.1% during the same period last year.
Operating loss from continuing operations was RMB56 million in the first quarter of 2025, compared to RMB66 million during the same period last year. Operating margin of continuing operations was -15.3%, compared to -9.2% in the prior year.
Loss from Continuing Operations Attributable to Shareholders
Loss from continuing operations attributable to OneConnect’s shareholders was RMB38 million in the first quarter of 2025, compared to RMB54 million during the same period last year. Loss from continuing operations attributable to OneConnect’s shareholders per basic and diluted ADS was RMB-1.06, compared to RMB-1.48 during the same period last year. Weighted average number of ordinary shares in the first quarter of 2025 was 1,089,842,845.
Cash Flow
For the first quarter of 2025, net cash used in operating activities was RMB190 million, net cash used in investing activities was RMB825 million, and net cash used in financing activities was RMB6 million.
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 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.
Contacts
Investor Relations:
OCFT IR Team
OCFT_IR@ocft.com
Media Relations:
OCFT PR Team
pub_jryztppxcb@pingan.com.cn
ONECONNECT
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended March 31
2025
2024
RMB’000
RMB’000
Continuing operations
Revenue
367,778
723,270
Cost of revenue
(262,864)
(450,867)
Gross profit
104,914
272,403
Research and development expenses
(61,570)
(213,183)
Selling and marketing expenses
(46,485)
(48,500)
General and administrative expenses
(47,685)
(80,520)
Net impairment losses on financial and contract
assets
(8,981)
(13,690)
Other income, gains or loss ‑ net
3,544
17,142
Operating loss
(56,263)
(66,348)
Finance income
15,544
10,340
Finance costs
(1,734)
(4,278)
Finance income – net
13,810
6,062
Loss before income tax
(42,453)
(60,286)
Income tax expense
(641)
(89)
Loss for the period from continuing operations
(43,094)
(60,375)
Discontinued operations
Loss from discontinued operations (attributable
to owners of the Company)
–
(50,638)
Loss for the period
(43,094)
(111,013)
Loss attributable to:
– Owners of the Company
(38,362)
(104,334)
– Non-controlling interests
(4,732)
(6,679)
(43,094)
(111,013)
Loss attributable to owners of the Company
arises from:
– Continuing operations
(38,362)
(53,696)
– Discontinued operations
–
(50,638)
(38,362)
(104,334)
Other comprehensive (loss)/income, net of tax:
Items that may be subsequently reclassified to
profit or loss
– Foreign currency translation differences of
continuing operations
(67)
1,334
– Exchange differences on translation of
discontinued operations
–
177
– Changes in the fair value of debt instruments
measured at fair value through other
comprehensive income of discontinued
operations
–
6,056
Item that will not be reclassified subsequently to
profit or loss
– Foreign currency translation differences
(2,628)
1,942
Other comprehensive (loss)/income for the
period, net of tax
(2,695)
9,509
Total comprehensive loss for the period
(45,789)
(101,504)
Loss per share for loss from continuing
operations attributable to owners of the
Company
(expressed in RMB per share)
– Basic and diluted
(0.04)
(0.05)
Loss per ADS for loss from continuing operations
attributable to owners of the Company
(expressed in RMB per share)
– Basic and diluted
(1.06)
(1.48)
Loss per share for loss attributable to owners of
the Company
(expressed in RMB per share)
– Basic and diluted
(0.04)
(0.10)
Loss per ADS for loss attributable to owners of
the Company
(expressed in RMB per share)
– Basic and diluted
(1.06)
(2.87)
ONECONNECT
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31
2025
December
31
2024
RMB’000
RMB’000
ASSETS
Non‑current assets
Property and equipment
52,364
43,895
Intangible assets
189,152
195,636
Deferred tax assets
313,805
313,805
Restricted cash and time deposits over three
months
3,932
–
Prepayments and other receivables
7,260
6,506
Trade receivables
10,186
10,106
Total non-current assets
576,699
569,948
Current assets
Trade receivables
504,110
496,429
Contract assets
65,673
63,420
Prepayments and other receivables
268,007
342,221
Financial assets measured at fair value
through profit or loss
877,059
455,016
Derivative financial assets
797
40,356
Restricted cash and time deposits over three
months
490,428
51,940
Cash and cash equivalents
924,955
1,947,922
Total current assets
3,131,029
3,397,304
Total assets
3,707,728
3,967,252
EQUITY AND LIABILITIES
EQUITY
Share capital
78
78
Shares held for share option scheme
(145,195)
(149,544)
Other reserves
11,029,706
11,041,209
Accumulated losses
(8,371,653)
(8,333,291)
Equity attributable to equity owners of the
Company
2,512,936
2,558,452
Non-controlling interests
(59,241)
(54,509)
Total equity
2,453,695
2,503,943
LIABILITIES
Non‑current liabilities
Trade and other payables
17,669
10,670
Contract liabilities
11,254
12,946
Total non‑current liabilities
28,923
23,616
Current liabilities
Trade and other payables
890,467
993,842
Payroll and welfare payables
201,981
311,190
Contract liabilities
110,025
115,501
Short-term borrowings
19,907
19,160
Derivative financial liabilities
2,730
–
Total current liabilities
1,225,110
1,439,693
Total liabilities
1,254,033
1,463,309
Total equity and liabilities
3,707,728
3,967,252
ONECONNECT
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31
2025
2024
RMB’000
RMB’000
Net cash used in operating activities
(189,795)
(115,236)
Net cash (used in)/generated from investing activities
(824,942)
255,848
Net cash used in financing activities
(5,646)
(100,971)
Net (decrease)/increase in cash and cash equivalents
(1,020,383)
39,641
Cash and cash equivalents at the beginning of the period
1,947,922
1,379,473
Effects of exchange rate changes on cash and cash
equivalents
(2,584)
1,777
Cash and cash equivalents at the end of period
924,955
1,420,891