1. OneConnect reported a 52.9% revenue drop in Q4 2024. 2. Net loss attributable to shareholders was RMB 569 million in Q4 2024. 3. Cloud services revenue dropped 98.5%, impacting overall financial performance. 4. Operating loss margin deteriorated to -35.6% compared to previous year. 5. The company continues to phase out its cloud services after strategic review.
OCFT's significant revenue drop indicates severe operational challenges and profitability issues. Historical precedents show similar financial declines often lead to stock sell-offs.
The drastic decline in revenue and net income indicates serious financial health issues, making this information highly pertinent for investors.
Persistent losses and strategic shifts to phase out cloud services could dampen OCFT's market position long-term. Previous cases, like that of other tech companies discontinuing major product lines, often hurt stock performance over extended periods.
/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 fourth quarter and full year ended December 31, 2024.
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.
| Three Months Ended December 31 | Year Ended December 31 | 2024 | 2023 |
|---|---|---|---|
| Continuing operations | Revenue | ||
| Revenue from Ping An Group and Lufax | 190,822 | 1,307,064 | |
| Revenue from third-party customers | 224,405 | 941,039 | |
| Total | 415,227 | 2,248,103 | |
| Gross profit | 142,153 | 804,497 | |
| Operating loss | (147,741) | (303,533) | |
| Net loss from continuing operations | (569,181) | (669,176) | |
Revenue from Continuing Operations Breakdown and further details on performance and operations can be obtained directly from the company's announcements and financial statements.
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. The integrated solutions and platform the Company provides include digital banking solutions, digital insurance solutions, and the Gamma Platform, which is a technology infrastructural platform for financial institutions. The Company's solutions enable its customers' digital transformations, improving efficiency, enhancing service quality, and reducing costs and risks.
This press release contains forward-looking statements that involve risks and uncertainties. For more information regarding these and other risks, please refer to the Company's filings with the U.S. Securities and Exchange Commission.
Investor Relations: OCFT IR Team [email protected]
Media Relations: OCFT PR Team [email protected]