OneConnect Announces First Quarter 2021 Unaudited Financial Results

SHENZHEN, China–(BUSINESS WIRE)–OneConnect Monetary Know-how Co., Ltd. (“OneConnect” or the “Firm”) (NYSE: OCFT), a number one technology-as-a-service platform for monetary establishments in China, right this moment introduced its unaudited monetary outcomes for the primary quarter ended March 31, 2021.

First Quarter 2021 Monetary Highlights

  • Income elevated 41.1% 12 months over 12 months to RMB820 million from RMB581 million.
  • Gross margin was 34.Zero%, as in comparison with 34.Eight%; non-IFRS gross margin1 was 43.5%, as in comparison with 46.Zero%.
  • Working loss was RMB346 million, as in comparison with RMB445 million for a similar interval within the prior 12 months.
  • Web loss attributable to shareholders was RMB305 million, versus RMB415 million for a similar interval within the prior 12 months.
  • Web loss per ADS, fundamental and diluted, was RMB0.83, versus RMB1.20.

In RMB’000, besides percentages and per ADS quantities

  

Three Months Ended March 31

  

YoY

  

2021

2020

  

Income

  

 

 

  

 

Income from Ping An Group

  

435,851

227,508

  

91.6%

Income from Lufax

  

75,105

83,399

  

-9.9%

Income from third-party clients2

  

308,809

269,891

  

14.four%

Whole

  

819,765

580,799

  

41.1%

Gross revenue

  

278,555

201,843

  

38.Zero%

Gross margin

  

34.Zero%

34.Eight%

  

 

Non-IFRS gross margin1

  

43.5%

46.Zero%

  

 

Working loss

  

-346,130

-445,454

  

 

Working margin

  

-42.2%

-76.7%

  

 

Web loss to shareholders

  

-304,732

-414,727

  

 

Web loss per ADS, fundamental and diluted

  

-Zero.83

-1.20

  

 

1 For extra particulars on this non-IFRS monetary measure, please see the part entitled “Use of Unaudited Non-IFRS Monetary Measures” and the desk captioned “Reconciliations of IFRS and Non-IFRS Outcomes (Unaudited)” set forth on the finish of this press launch.

2 Third-party clients consult with clients with income contribution of lower than 5% of whole. These clients are a key focus of the Firm’s diversification technique.

Three Some numbers don’t add up because of rounding.

CEO and CFO Feedback

“We’re happy to have had a strong quarter to begin the 12 months 2021,” mentioned Ye Wangchun, chairman and CEO of OneConnect. “We constructed on the momentum from the rollout of the cloud companies platform final 12 months, greater than offsetting the hole from the exit of low-value merchandise and attaining 41.1% income progress 12 months over 12 months. This era of consolidation is crucial to aligning our assets and positioning the corporate to higher assist the digital transformation of monetary establishments.”

“Optimising the portfolio of options stays a prime precedence this 12 months. The sequential development offers a sign of the progress made,” commented CFO Luo Yongtao. “Each gross margin and income contribution from third-party clients demonstrated a rebound quarter on quarter. Web loss additionally additional narrowed, each 12 months over 12 months and quarter over quarter.”

Operational Highlights

  • Retail loans processed amounted to RMB14.1 billion, as in comparison with RMB12.7 billion for a similar interval within the prior 12 months.
  • SME loans processed amounted to RMB7.1 billion, as in comparison with RMB5.7 billion for a similar interval within the prior 12 months.
  • Variety of quick claims checks amounted to 1.56 million, as in comparison with 995 thousand for a similar interval within the prior 12 months.

Income Breakdown

In RMB’000, besides percentages

Three Months Ended March 31

YoY

2021

2020

Implementation income

168,567

139,382

20.9%

Transaction-based and assist income

 

 

 

Enterprise origination companies

118,499

180,577

-34.four%

Danger administration companies

99,290

82,077

21.Zero%

Operation assist companies

212,237

164,433

29.1%

Cloud companies platform

180,512

NA

Submit-implementation assist companies

13,236

four,723

180.2%

Others

27,424

9,607

185.5%

Whole

651,198

441,417

47.5%

Whole

819,765

580,799

41.1%

Income for the primary quarter of 2021 rose 12 months over 12 months by 41.1% to RMB820 million from RMB581 million. Of word, the cloud companies platform was the largest driver for the rise. Launched final 12 months, it now makes up 22% of whole income. One other main contributor was operation assist companies, the place income rose 29.1% 12 months over 12 months to RMB212 million from RMB164 million, reflecting the expansion of options equivalent to roadside help for auto insurance coverage and AI customer support. Enterprise origination companies, nevertheless, posted a drop in income, to RMB118 million from RMB181 million, because of product phase-out.

Retail mortgage quantity processed by the Firm’s methods in the course of the quarter elevated to RMB14.1 billion from RMB12.7 billion. SME loans processed was RMB7.1 billion, in contrast with RMB5.7 billion. Whole quick claims checks carried out in the course of the quarter amounted to 1.56 million, in contrast with 995 thousand within the prior 12 months.

First Quarter 2021 Monetary Outcomes

Income

Income elevated by 41.1% to RMB820 million from RMB581 million within the prior 12 months, primarily pushed by the cloud companies platform and operation supporting companies.

Value of Income

Value of income was RMB541 million, in contrast with RMB379 million within the prior 12 months, led by a rise in bills associated to the launch of the cloud companies platform.

Gross Revenue

Gross revenue elevated by 38.Zero% to RMB279 million from RMB202 million within the prior 12 months. Gross margin fell to 34.Zero% from 34.Eight%, following adjustments within the mixture of options. Non-IFRS gross margin decreased to 43.5% from 46.Zero% for a similar cause. For a reconciliation of the Firm’s non-IFRS gross margin to IFRS gross margin, its most comparable IFRS measure, please consult with “Reconciliation of IFRS and Non-IFRS Outcomes (Unaudited).”

Working Loss and Bills

Whole working bills amounted to RMB636 million, in contrast with RMB609 million within the prior 12 months. As a share of income, whole working bills decreased to 77.6% from 104.Eight%.

  • Analysis and Improvement bills totaled RMB281 million, in contrast with RMB240 million within the prior 12 months, reflecting extra spending to assist the event of latest options equivalent to cloud. As a share of income, R&D bills decreased to 34.Three% from 41.Three% within the prior 12 months.
  • Promoting and Advertising bills totaled RMB167 million, in contrast with RMB156 million within the prior 12 months, primarily because of a step-up in advertising and promoting. As a share of income, promoting and advertising bills was 20.four%, in contrast with 26.Eight% for the prior 12 months.
  • Normal and Administrative bills amounted to RMB180 million, in contrast with RMB193 million within the prior 12 months, primarily because of decrease worker profit bills. As a share of income, common and administrative bills was 22.Zero%, versus 33.2%.

Loss from operations for the primary quarter of 2021 decreased to RMB346 million from RMB445 million. Working loss margin was 42.2%, in contrast with 76.7% within the prior 12 months.

Web Loss

Web loss attributable to OneConnect’s shareholders amounted to RMB305 million, in contrast with RMB415 million within the prior 12 months. Web loss attributable to OneConnect’s shareholders per fundamental and diluted ADS amounted to RMB0.83, versus RMB1.20 for the prior 12 months interval.

For the quarter ended March 31, 2021, the Firm’s weighted common variety of shares utilized in calculating per share web loss was 1,104,667,130. Variety of excellent shares as of March 31, 2021 was 1,169,980,661.

Money Movement

As of March 31, 2021, the Firm had money and money equivalents of RMB2,361 million and monetary belongings at truthful worth via revenue or lack of RMB1,619 million. For the quarter ended March 31, 2021, web money utilized in working actions was RMB461 million. Web money generated from in investing actions was RMB1,Zero28 million, as the size of onshore borrowing utilizing offshore pledges lowered and in consequence restricted money steadiness decreased. Web money utilized in financing actions was RMB1,265 million.

Convention Name Data

An archived recording and the transcript of the convention name might be out there at OneConnect’s investor relations web site at ir.ocft.com.

About OneConnect

OneConnect is a number one technology-as-a-service platform for monetary establishments in China. The Firm’s platform offers cloud-native know-how options that combine in depth monetary companies business experience with market-leading know-how. The Firm’s options present know-how functions and technology-enabled enterprise companies to monetary establishments. Collectively they allow the Firm’s clients’ digital transformations, which assist them enhance income, handle dangers, enhance effectivity, improve service high quality and scale back prices.

Our technology-as-a-service platform strategically covers a number of verticals within the monetary companies business, together with banking, insurance coverage and asset administration, throughout the total scope of their companies – from gross sales and advertising and threat administration to buyer companies, in addition to know-how infrastructure equivalent to information administration, program growth, and cloud companies.

For extra data, please go to ir.ocft.com.

Secure Harbor Assertion

This announcement accommodates forward-looking statements. These statements represent “forward-looking” statements inside the which means of Part 21E of the Securities Trade Act of 1934, as amended, and as outlined within the U.S. Personal Securities Litigation Reform Act of 1995. These forward-looking statements might be recognized by terminology equivalent to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “assured” and comparable statements. Such statements are based mostly upon administration’s present expectations and present market and working circumstances and relate to occasions that contain identified or unknown dangers, uncertainties and different elements, all of that are tough to foretell and plenty of of that are past the Firm’s management. Ahead-looking statements contain inherent dangers and uncertainties. Quite a lot of elements may trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: the Firm’s restricted working historical past within the technology-as-a-service for monetary establishments business; its potential to realize or maintain profitability; the tightening of legal guidelines, rules or requirements within the monetary companies business; the Firm’s potential to adjust to the evolving regulatory necessities within the PRC and different jurisdictions the place it operates; its potential to keep up and enlarge the shopper base or strengthen buyer engagement; its potential to keep up its relationship with Ping An Group, which is its strategic associate, most essential buyer and largest provider; its potential to compete successfully to serve China’s monetary establishments; the effectiveness of its applied sciences, its potential to keep up and enhance know-how infrastructure and safety measures; its potential to guard its mental property and proprietary rights; dangers of defaults by debtors underneath the loans for which the Firm offered credit score enhancement underneath its legacy credit score administration enterprise; its potential to keep up or broaden relationship with its enterprise companions and the failure of its companions to carry out in accordance with expectations; its potential to guard or promote its model and fame; its potential to well timed implement and deploy its options; its potential to acquire extra capital when desired; disruptions within the monetary markets and enterprise and financial circumstances; the Firm’s potential to pursue and obtain optimum outcomes from acquisition or growth alternatives; the length of the COVID-19 outbreak and its potential affect on the Firm’s enterprise and monetary efficiency; and assumptions underlying or associated to any of the foregoing. Additional data concerning these and different dangers is included within the Firm’s filings with the SEC. All data offered on this press launch and within the attachments is as of the date of this press launch, and the Firm undertakes no obligation to replace any forward-looking assertion, besides as required underneath relevant regulation.

Use of Unaudited Non-IFRS Monetary Measures

The unaudited consolidated monetary data is ready in accordance with Worldwide Monetary Reporting Requirements (IFRS). Non-IFRS measures are utilized in gross revenue and gross margin, adjusted to exclude non-cash objects, which encompass amortization of intangible belongings acknowledged in price of income, depreciation of property and gear acknowledged in price of income, and share-based compensation bills acknowledged in price of income. OneConnect’s administration repeatedly overview non-IFRS gross revenue and non-IFRS gross margin to evaluate the efficiency of our enterprise. By excluding non-cash objects, these monetary metrics permit OneConnect’s administration to judge the money conversion of 1 greenback income on gross revenue. OneConnect makes use of these non-IFRS monetary to judge our ongoing operations and for inside planning and forecasting functions. OneConnect believes that non-IFRS monetary data, when taken collectively, is useful to traders as a result of it offers consistency and comparability with previous monetary efficiency, facilitates period-to-period comparisons of outcomes of operations, and assists in comparisons with different corporations, lots of which use comparable monetary data. OneConnect additionally believes that presentation of the non-IFRS monetary measures offers helpful data to its traders concerning its outcomes of operations as a result of it permits traders better transparency to the knowledge utilized by OneConnect’s administration in its monetary and operational determination making in order that traders can see via the eyes of the OneConnect’s administration concerning essential monetary metrics that the administration makes use of to run the enterprise in addition to permitting traders to higher perceive OneConnect’s efficiency. Nonetheless, non-IFRS monetary data is offered for supplemental informational functions solely, and shouldn’t be thought-about an alternative choice to monetary data offered in accordance with IFRS, and could also be totally different from similarly-titled non-IFRS measures utilized by different corporations. In mild of the foregoing limitations, you shouldn’t contemplate non-IFRS monetary measure in isolation from or as an alternative choice to the monetary measure ready in accordance with IFRS. Every time OneConnect makes use of a non-IFRS monetary measure, a reconciliation is offered to essentially the most carefully relevant monetary measure acknowledged in accordance with IFRS. You might be inspired to overview the associated IFRS monetary measures and the reconciliation of those non-IFRS monetary measures to their most immediately comparable IFRS monetary measures. For extra data on non-IFRS monetary measures, please see the desk captioned “Reconciliations of IFRS and non-IFRS outcomes (Unaudited)” set forth on the finish of this press launch.

ONECONNECT

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended March 31

2021

2020

RMB’000

RMB’000

 

Income

819,765

580,799

Value of income

-541,210

-378,956

Gross revenue

278,555

201,843

 

Analysis and growth bills

-281,299

-239,602

Promoting and advertising bills

-167,054

-155,615

Normal and administrative bills

-180,457

-192,959

Web impairment losses on monetary and contract belongings

-7,104

-20,722

Different earnings, features or loss-net

11,229

-38,399

Working loss

-346,130

-445,454

 

Finance earnings

18,157

27,607

Finance prices

-26,235

-45,058

Finance prices – web

-Eight,Zero78

-17,451

Share of losses of affiliate and three way partnership

four,547

-Three,639

Loss earlier than earnings tax

-349,661

-466,544

 

Earnings tax profit/(expense)

26,871

33,456

 

Loss for the interval

-322,790

-433,088

 

Loss attributable to:

 

– House owners of the Firm

-304,732

-414,727

– Non-controlling pursuits

-18,058

-18,361

 

Different complete earnings, web of tax

 

Objects which may be subsequently reclassified to revenue or loss

 

– International forex translation variations

50,099

118,560

– Adjustments within the truthful worth of debt devices at truthful worth

via different complete earnings

1

102

Whole complete loss for the interval

-272,690

-314,426

 

Whole complete loss attributable to:

– House owners of the Firm

-254,632

-296,Zero65

– Non-controlling pursuits

-18,058

-18,361

 

Loss per ADS attributable to house owners of the Firm

 

 

(expressed in RMB per share)

 

 

 

– Primary and diluted

 

-Zero.83

-1.20

ONECONNECT

CONSOLIDATED BALANCE SHEETS

(Unaudited)

March 31

December 31

2021

2020

RMB’000

RMB’000

 

ASSETS

Non-current belongings

Property and gear

190,627

224,284

Intangible belongings

872,352

917,Zero63

Deferred tax belongings

591,384

564,562

Monetary belongings measured at amortized price from banking operations

53,Zero33

25,283

Investments accounted for utilizing the fairness technique

180,280

175,733

Monetary belongings at truthful worth via different complete earnings

 

21,903

21,828

Contract belongings

7,698

16,788

Whole non-current belongings

1,917,277

1,945,541

 

Present belongings

 

Commerce receivables

911,855

838,690

Contract belongings

299,281

257,830

Prepayments and different receivables

483,996

443,328

Monetary belongings measured at amortized price from banking operations

 

453,274

576,305

Monetary belongings at truthful worth via revenue or loss

 

1,619,437

1,487,871

Restricted money

1,109,210

2,280,499

Money and money equivalents

2,360,880

Three,055,194

Whole present belongings

7,237,933

Eight,939,717

Whole belongings

9,155,210

10,885,258

 

EQUITY AND LIABILITIES

 

Fairness

 

Share capital

78

78

Shares held for share choice scheme

-84,478

-87,714

Different reserves

10,697,787

10,639,931

Gathered losses

-5,661,658

-5,356,926

Fairness attributable to fairness house owners of the Firm

four,951,729

5,195,369

 

Non-controlling pursuits

71,856

89,914

 

 

Whole fairness

5,Zero23,585

5,285,283

 

LIABILITIES

Non-current liabilities

Commerce and different payables

297,199

395,514

Contract liabilities

14,854

17,683

Deferred tax liabilities

16,776

20,080

Whole non-current liabilities

328,829

433,277

 

Present liabilities

 

Commerce and different payables

1,592,530

1,547,781

Payroll and welfare payables

415,230

625,330

Contract liabilities

141,492

138,547

Brief-term borrowings

1,058,313

2,283,307

Buyer deposits

427,906

405,853

By-product monetary liabilities

167,325

165,880

Whole present liabilities

Three,802,796

5,166,698

Whole liabilities

four,131,625

5,599,975

 

Whole fairness and liabilities

9,155,210

10,885,258

ONECONNECT

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31

2021

2020

RMB’000

RMB’000

 

Web money generated from / (utilized in) working actions

-460,783

-588,521

Web money generated from / (utilized in) investing actions

1,Zero28,447

1,711,477

Web money generated from / (utilized in) financing actions

-1,264,659

-666,585

Web enhance /(lower) in money and money equivalents

-696,995

456,371

Money and money equivalents originally of the interval

Three,055,194

1,077,875

Results of trade fee adjustments on money and money equivalents

2,681

28,547

Money and money equivalents on the finish of interval

2,360,880

1,562,793

ONECONNECT

RECONCILIATION OF IFRS AND NON-IFRS RESULTS

(Unaudited)

Three Months Ended March 31

2021

2020

RMB’000

RMB’000

 

Gross revenue

278,555

201,843

Gross margin

34.Zero%

34.Eight%

Non-IFRS adjustment

 

Amortization of intangible belongings acknowledged in price of income

76,746

63,605

Depreciation of property and gear acknowledged in price of income

600

767

Share-based compensation bills acknowledged in price of income

921

709

Non-IFRS Gross revenue

356,822

266,924

Non-IFRS Gross margin

43.5%

46.Zero%

 

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