Zhongtong Finance News APP reported that Oneconnect Financial Technology (06638) announced its 2024 interim financial results, with revenue of approximately RMB 1.416 billion and gross profit of approximately RMB 526 million...

In the second quarter of 2024, the company realized revenue of approximately RMB 692 million and gross profit of approximately RMB 253 million, with the company's owners accounting for approximately RMB 243 million in excess profits, reversing the loss from the same period last year.

Mr. Shen Chongfeng, Chairman and CEO, said, 'In the first half of 2024, despite a year-on-year decrease in revenue, we achieved encouraging results in overseas markets and improved profitability. During this period, our strategic goal was to achieve midterm profitability, focusing on product upgrading and integration, customer cultivation, and expanding overseas markets. Thanks to this, the high-value and high-threshold products we created have been more widely recognized by customers, and third-party overseas customer revenue in the first half of the year increased by 14.8% year-on-year. In addition, we divested non-core virtual banking business, focused on core business, and continued to implement strict cost control measures, resulting in net income from sustained and terminated operations in the first half of the year. Further cost-cutting measures also significantly reduced losses from sustained operations.'

'Despite the recent decision to gradually terminate the financial cloud business starting from July 2024, we will maintain strategic stability, focus on the three main businesses of digital banking, digital insurance, and the JAM platform, and continue to empower the digital transformation of financial institutions and enterprises. With our customer insights, industry experience, and AI technology, we will continue to optimize products, services, and solutions, develop premium+ customers, and at the same time explore broader overseas markets, expand the ecosystem, promote third-party revenue growth, and achieve long-term healthy development.'

Mr. Luo Yongtao, CFO, said, 'Since entering 2024, we have continued to focus on improving resource and fund allocation efficiency and have achieved significant results. We have completed the sale of virtual banking business to refocus resources on core business, and therefore recognized a one-time gain of RMB 260 million. In the first half of the year, our owners accounted for a net profit of RMB 139 million from sustained and discontinued operations, while the same period last year was a net loss of RMB 190 million. Excluding the proceeds from the sale of virtual banking business, our owners accounted for a significant 38.0% year-on-year narrowing of losses in sustained operations in the first half of this year, to RMB 70 million. In the second quarter, the net loss in sustained operations by the company's owners was significantly reduced by 59.2% year-on-year and 68.7% quarter-on-quarter. The significant reduction in sustained operating losses is mainly due to our cost control measures that are ROI-oriented. In the first half of 2024, the adjusted gross profit margin of the company's sustained operations remained at a healthy level of 39.4%, and operating expenses in sustained operations decreased by 21.9% year-on-year. Looking ahead, while continuing to strictly implement cost control measures, we will use abundant cash in hand to support R&D investment, accelerate innovation in the digital economy field, and we are confident that this will enable us to expand our domestic and overseas market share and ultimately achieve sustainable profitability.'