1. OCFT's Q1 revenue dropped 49.2% year-over-year to RMB368 million. 2. Gross margin fell to 28.5% from 37.7% last year. 3. Net loss for Q1 attributable to shareholders was RMB38 million. 4. Revenue from Ping An Group and Lufax decreased by 67.2%. 5. Post-implementation support services saw a 33.5% revenue increase.
The substantial drop in revenue and gross margin indicates financial distress, similar to historical downturns affecting investor sentiment.
The disappointing financial results directly influence OCFT's market perception and investor confidence.
Given the immediate negative financial results, the impact will likely be felt in the near future as investors react.
("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.
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.
| YoY | 2025 | 2024 |
|---|---|---|
| Continuing operations | 367,778 | 723,270 |
| Gross profit | 104,914 | 272,403 |
| Operating loss | (56,263) | (66,348) |
| Loss from continuing operations | (38,362) | (53,696) |
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 the cloud services platform.
| Three Months Ended | 2025 | 2024 |
|---|---|---|
| Revenue | 367,778 | 723,270 |
| Loss for the period | (43,094) | (111,013) |
OneConnect Financial Technology Co., Ltd. is a technology-as-a-service provider for the 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.
This press release contains forward-looking statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Investor Relations: OCFT IR Team ir@ocft.com
Media Relations: OCFT PR Team pr@ocft.com