OneConnect Announces Fourth Quarter and Full Year 2024 Unaudited Financial Results

Core Viewpoint - OneConnect Financial Technology Co., Ltd. reported significant declines in revenue and increased net losses for the fourth quarter and full year of 2024, primarily due to the strategic phasing out of its cloud services and a decrease in demand for its financial technology solutions [1][11][16]. Financial Highlights Fourth Quarter 2024 Financial Highlights - Revenue from continuing operations was RMB 415 million, a decrease of 52.9% from RMB 882 million in the same period last year [5][11]. - Gross profit from continuing operations was RMB 142 million, with a gross margin of 34.2%, down from 39.0% year-over-year [13][11]. - Operating loss from continuing operations was RMB 148 million, compared to a loss of RMB 45 million in the prior year [15][11]. - Net loss from continuing operations attributable to shareholders was RMB 569 million, compared to RMB 47 million in the same period last year [16][11]. Full Year 2024 Financial Highlights - Total revenue from continuing operations for the year was RMB 2,248 million, down 36.2% from RMB 3,522 million in 2023 [5][11]. - Gross profit for the year was RMB 804 million, with a gross margin of 35.8%, compared to 37.7% in the previous year [13][11]. - Net loss from continuing operations attributable to shareholders for the year was RMB 669 million, compared to RMB 211 million in 2023 [16][11]. Revenue Breakdown - Revenue from the Digital Banking segment was RMB 92 million, a decrease of 62.7% year-over-year [10]. - Revenue from the Digital Insurance segment was RMB 141 million, relatively stable with a slight increase of 0.2% [10]. - Revenue from the Gamma Platform segment was RMB 182 million, down 63.2% from the previous year [10]. Cost and Expenses - Cost of revenue from continuing operations was RMB 273 million, a decrease of 49.3% from RMB 538 million in the same period last year [12][11]. - Total operating expenses from continuing operations were RMB 165 million, down from RMB 391 million year-over-year [14][11]. - Research and Development expenses decreased to RMB 41 million from RMB 197 million in the prior year, reflecting a strategic adjustment in business structure [14][11]. Cash Flow - Net cash generated from operating activities was RMB 55 million for the fourth quarter of 2024 [17][11]. - Net cash generated from investing activities was RMB 260 million, while net cash used in financing activities was RMB 46 million [17][11]. Company Overview - OneConnect is a technology-as-a-service provider for the financial services industry, focusing on digital banking, digital insurance, and technology infrastructure solutions [18][19]. - The company aims to support the digital transformation of financial institutions, enhancing efficiency and reducing costs and risks [18][19].