Connect with us

Technology

OneConnect Announces Second Quarter and First Half 2024 Unaudited Financial Results

Published

on

Net Margin of Continuing Operations to Shareholders Improved to -2.4%
Net Margin of Continuing and Discontinued Operations[1] to Shareholders Improved to 35.1% 

SHENZHEN, China, Aug. 16, 2024 /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 second quarter and half year ended June 30, 2024.

Second Quarter 2024 Financial Highlights

Revenue from continuing operations was RMB692 million, compared to RMB939 million for the same period of the prior year.Gross margin of continuing operations was 36.6%, compared to 37.5% for the same period of the prior year; non-IFRS gross margin of continuing operations was 38.8%, compared to 40.0% for the same period of the prior year.Net loss from continuing operations attributable to shareholders was RMB17 million, compared to RMB41 million for the same period of the prior year. Net margin of continuing operations to shareholders improved to -2.4% from -4.4% for the same period last year.Net loss from continuing operations per basic and diluted ADS was RMB-0.46, compared to RMB-1.13 during the same period last year.Net profit from continuing and discontinued operations attributable to shareholders was RMB243 million, primarily due to the gains derived from the disposal of virtual banking business, compared to net loss of RMB82 million for the same period of the prior year. Net margin of continuing and discontinued operations to shareholders improved by 43.8ppt to 35.1% compared to -8.7% during the same period last year.Earnings from continuing and discontinued operations per basic and diluted ADS was RMB6.70, compared to RMB-2.25 during the same period last year.

[1]  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 have been reflected as the “discontinued operations” in the Company’s condensed consolidated interim financial information and the historical financial results of the remaining business of the Company have been reflected as the “continuing operations” in the Company’s condensed consolidated interim financial information of the first half of 2024 and of the comparative period in 2023.

 

In RMB’000, except percentages
and per ADS amounts

Three Months Ended

Six Months Ended

June 30

YoY

June 30

YoY

2024

2023

2024

2023

Continuing operations

Revenue

Revenue from Ping An Group

401,084

580,795

-30.9 %

822,880

1,117,649

-26.4 %

Revenue from Lufax[1]

54,463

73,142

-25.5 %

112,719

144,499

-22.0 %

Revenue from third-party customers[2]

236,952

285,222

-16.9 %

480,170

570,837

-15.9 %

Total

692,499

939,159

-26.3 %

1,415,769

1,832,985

-22.8 %

Gross profit

253,379

352,385

525,782

687,042

Gross margin

36.6 %

37.5 %

37.1 %

37.5 %

Non-IFRS gross margin

38.8 %

40.0 %

39.4 %

40.1 %

Operating loss

(39,154)

(38,226)

(105,502)

(116,368)

Operating margin

-5.7 %

-4.1 %

-7.5 %

-6.3 %

Net loss from continuing operations
attributable to shareholders

(16,789)

(41,170)

(70,485)

(113,649)

Net margin of continuing operations to
shareholders

-2.4 %

-4.4 %

-5.0 %

-6.2 %

Net loss from continuing operations per
ADS[3], basic and diluted

(0.46)

(1.13)

(1.94)

(3.13)

Net profit/(loss) from continuing and
discontinued operations attributable to
shareholders

243,348

(81,592)

139,014

(190,465)

Net margin of continuing and
discontinued operations to shareholders

35.1 %

-8.7 %

9.8 %

-10.4 %

Earnings/(loss) from continuing and
discontinued operations per ADS[3],
basic and diluted

6.70

(2.25)

3.83

(5.24)

 

[1]  Reference is made to announcements made by Lufax dated July 3, 2024 and July 30, 2024, upon the completion of the allotment and issuance of new Lufax shares under the Lufax Script Dividend Scheme described therein, Lufax will become an indirect non-wholly-owned subsidiary of Ping An Group and the financial results of Lufax Group will be consolidated into the consolidated financial statements of Ping An Group.

[2]  Third-party customers refer to each customer with revenue contribution of less than 5% of the Company’s total revenue in the relevant period. These customers are a key focus of the Company’s diversification strategy.

[3]  In RMB. Each ADS represents 30 ordinary shares.

Chairman, CEO and CFO Comments

Mr. Chongfeng Shen, Chairman of the Board and Chief Executive Officer, commented, “During the first half of 2024, we achieved encouraging results in overseas markets and improved our bottom-line despite the year-over-year decrease in revenue. Throughout this time, we focused on our strategic goal of achieving mid-term profitability by upgrading and integrating products, deepening customer engagement, and expanding our presence in overseas markets. Consequently, our high-value products, protected by high barriers to entry, gained broader appeal from customers, reflected in the 14.8% year-over-year increase in revenue from third-party overseas customers in our continuing operations during the first half of the year. We completed the disposal of our non-core virtual banking business to focus on our core businesses, and continued to implement disciplined expense control measures. As a result, we recorded net profit from continuing operations and discontinued operations during the first half of the year while further cost reductions continued to narrow our loss from continuing operations.”

“Despite our recent decision to gradually phase out the FinCloud business starting in July 2024, we maintain our strategic focus and will continue to empower the digital transformation of financial institutions and enterprises through our three main businesses: digital banking, digital insurance, and the Gamma platform. Leveraging our customer insights, industry expertise, and artificial intelligence technologies, we will further optimize our products, services, and solutions, and expand our premium-plus customer base. At the same time, we will explore broader overseas markets and expand our ecosystem to drive third-party revenue growth to ensure long-term healthy development.”

Mr. Yongtao Luo, Chief Financial Officer, commented, “Since the start of this year, our focus on improving resource and capital allocation efficiency has generated solid results. We completed the sale of our virtual banking business to refocus resources on our core businesses, resulting in a one-time gain recognized from the disposal in the amount of RMB260 million. This contributed to our net profit from continuing and discontinued operations attributable to shareholders of RMB139 million during the first half of the year, compared to a net loss of RMB190 million for the prior year period. Excluding gains from the sale of virtual banking business, net loss from continuing operations attributable to shareholders also narrowed significantly, falling 59.2% year-over-year and 68.7% sequentially during the second quarter, and 38.0% year-over-year to RMB70 million during the first half of the year. This significant narrowing of our losses from the continuing operation was primarily due to our ROI-oriented approach in managing expenses. In the first half of 2024, adjusted gross margin of continuing operations remained healthy at 39.4%, with operating expenses for continuing operations falling by 21.9% year-over-year. Looking ahead, we will leverage our ample cash position to drive research and development and accelerate innovation in the digital economy as we continue to implement disciplined cost control measures. We are confident this will enable us to grow our market share both domestically and internationally, ultimately achieving sustainable profitability.”

Revenue from Continuing Operations Breakdown 

Three Months Ended

Six Months Ended

In RMB’000, except percentages

June 30

YoY

June 30

YoY

2024

2023

2024

2023

Implementation

168,627

233,089

-27.7 %

326,086

443,023

-26.4 %

Transaction-based and support revenue

 Business origination services

9,940

32,081

-69.0 %

22,775

81,127

-71.9 %

 Risk management services

61,031

72,574

-15.9 %

126,514

150,317

-15.8 %

 Operation support services

131,329

249,040

-47.3 %

265,391

471,585

-43.7 %

 Cloud services platform

289,109

322,373

-10.3 %

607,416

614,620

-1.2 %

 Post-implementation support services

14,427

13,308

8.4 %

29,348

25,649

14.4 %

 Others

18,036

16,694

8.0 %

38,239

46,664

-18.1 %

 Sub-total for transaction-based and support
revenue

523,872

 

706,070

-25.8 %

1,089,683

 

1,389,962

-21.6 %

Total Revenue from Continuing Operations

692,499

939,159

-26.3 %

1,415,769

1,832,985

-22.8 %

 

Revenue from continuing operations in the second quarter of 2024 decreased by 26.3% to RMB692 million from RMB939 million during the same period last year, primarily due to strategic adjustments made to our revenue mix as we focus on high-value products. Implementation revenue decreased by 27.7% year-over-year to RMB169 million during the second quarter of 2024, mainly due to a decline in demand for implementation of financial services systems domestically. Revenue from business origination services decreased by 69.0% year-over-year to RMB10 million during the second quarter of 2024, primarily due to a decline in transaction volumes from loan origination systems under digital credit management solutions. Revenue from risk management services decreased by 15.9% year-over-year to RMB61 million during the second quarter of 2024, mainly due to a decline in transaction volumes from banking related risk analytic solutions. Revenue from operation support services decreased by 47.3% year-over-year to RMB131 million during the second quarter of 2024, primarily due to a shift in business model for a number of auto ecosystem service providers where we transitioned from acting as a contractor to a distributor. Revenue from cloud services platform decreased by 10.3% year-over-year to RMB289 million during the second quarter of 2024, primarily due to reduced demand of cloud services.

 

Three Months Ended

Six Months Ended

In RMB’000, except percentages

June 30

YoY

June 30

YoY

2024

2023

2024

2023

Digital Banking segment

100,279

235,332

-57.4 %

261,832

494,069

-47.0 %

Digital Insurance segment

127,091

190,587

-33.3 %

258,977

367,244

-29.5 %

Gamma Platform segment

465,129

513,240

-9.4 %

894,960

971,671

-7.9 %

Total Revenue from Continuing
Operations

692,499

939,159

-26.3 %

1,415,769

1,832,985

-22.8 %

 

Revenue from Gamma Platform segment in the second quarter of 2024 decreased by 9.4% to RMB465 million from RMB513 million during the same period last year, primarily due to reduced demand of cloud services. Revenue from Digital Banking segment decreased by 57.4% to RMB100 million in the second quarter of 2024 from RMB235 million during the same period last year, mainly due to a decline in transaction volumes from business origination and risk management services, reflecting our continuing effort to phase out lower-value products. Revenue from Digital Insurance segment decreased by 33.3% to RMB127 million in the second quarter of 2024 from RMB191 million during the same period last year, primarily due a shift in business model for a number of auto ecosystem service providers where we transitioned from acting as a contractor to a distributor.

Second Quarter 2024 Financial Results

Revenue from Continuing Operations

Revenue from continuing operations in the second quarter of 2024 decreased by 26.3% to RMB692 million from RMB939 million during the same period last year, primarily due to strategic adjustments made to our revenue mix as we focus on high-value products.  

Cost of Revenue from Continuing Operations

Cost of revenue from continuing operations in the second quarter of 2024 decreased by 25.2% to RMB439 million from RMB587 million during the same period last year, in-line with the decrease in revenue.

Gross Profit from Continuing Operations

Gross profit from continuing operations in the second quarter of 2024 decreased to RMB253 million from RMB352 million during the same period last year. Gross margin of continuing operations declined slightly to 36.6%, compared to 37.5% in the prior year. Non-IFRS gross margin of continuing operations was 38.8%, compared to 40.0% in the prior year. For a reconciliation of the Company’s IFRS and non-IFRS gross margin, please refer to “Reconciliation of IFRS and Non-IFRS Results for continuing operations (Unaudited).”

Operating Loss and Expenses from Continuing Operations

Total operating expenses from continuing operations in the second quarter of 2024 decreased to RMB296 million from RMB402 million during the same period last year. As a percentage of revenue, total operating expenses from continuing operations decreased by 0.1ppt to 42.7% from 42.8% during the same period last year.

Research and Development expenses from continuing operations in the second quarter of 2024 decreased to RMB186 million from RMB252 million in the prior year, mainly due to a decrease in personnel costs and the ROI-oriented approach we are taking to manage research and development projects. As a percentage of revenue, research and development expenses from continuing operations slightly increased to 26.9% from 26.8% in the prior year.Sales and Marketing expenses from continuing operations in the second quarter of 2024 decreased to RMB44 million from RMB57 million in the prior year, mainly due to a decrease in personnel costs as we enhance sales efficiency and capabilities. As a percentage of revenue, sales and marketing expenses from continuing operations were 6.4%, compared to 6.1% in the prior year.General and Administrative expenses from continuing operations in the second quarter of 2024 decreased to RMB66 million from RMB93 million in the prior year. As a percentage of revenue, general and administrative expenses from continuing operations decreased to 9.5% from 9.9% during the same period last year, primarily due to a decrease in personnel costs.

Operating loss from continuing operations in the second quarter of 2024 increased slightly to RMB39 million from RMB38 million during the same period last year. Operating margin of continuing operations was -5.7%, compared to -4.1% in the prior year.

Net Loss from Continuing Operations Attributable to Shareholders

Net loss from continuing operations attributable to OneConnect’s shareholders in the second quarter of 2024 decreased by 59.2% to RMB17 million from RMB41 million during the same period last year. Net loss from continuing operations attributable to OneConnect’s shareholders per basic and diluted ADS decreased to RMB-0.46, compared to RMB-1.13 during the same period last year. Weighted average number of ordinary shares in the second quarter of 2024 was 1,089,589,125.

Net Profit from Continuing and Discontinued Operations Attributable to Shareholders

Net profit from continuing and discontinued operations attributable to OneConnect’s shareholders in the second quarter of 2024 was RMB243 million, compared to net loss of RMB82 million during the same period last year, which was primarily due to the gains derived from the disposal of virtual banking business. Earnings from continuing and discontinued operations attributable to OneConnect’s shareholders per basic and diluted ADS increased to RMB6.70, compared to RMB-2.25 during the same period last year. Weighted average number of ordinary shares in the second quarter of 2024 was 1,089,589,125.

Cash Flow

For the second quarter of 2024, net cash used in operating activities was RMB183 million, net cash generated from investing activities was RMB224 million of which RMB723 million was generated from the disposal of virtual banking business, and net cash used in financing activities was RMB29 million.

Conference Call Information

Date/Time

Friday, August 16, 2024 at 8:00 a.m., U.S. Eastern time

Friday, August 16, 2024 at 8:00 p.m., Hong Kong time

 

Online registration

 

https://www.netroadshow.com/events/login?show=1b2c1d6f&confId=69140

The financial results and an archived transcript will be available at OneConnect’s investor relations website at ir.ocft.com.

About OneConnect 

OneConnect Financial Technology Co., Ltd. is a technology-as-a-service provider for 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 solution, digital insurance solution and Gamma Platform, which is a technology infrastructural platform for financial institutions. The Company’s solutions enable its customers’ digital transformations, which help them improve efficiency, enhance service quality, and reduce costs and risks.

The Company has established long-term cooperation relationships with financial institutions to address their needs of digital transformation. The Company has also expanded its services to other participants in the value chain to support the digital transformation of financial services eco-system. In addition, the Company has successfully exported its technology solutions to overseas financial institutions.

For more information, please visit ir.ocft.com.

Safe Harbor Statement 

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s limited operating history in the technology-as-a-service for financial institutions industry; its ability to achieve or sustain profitability; the tightening of laws, regulations or standards in the financial services industry; the Company’s ability to comply with the evolving regulatory requirements in the PRC and other jurisdictions where it operates; its ability to comply with existing or future laws and regulations related to data protection or data security; its ability to maintain and enlarge the customer base or strengthen customer engagement; its ability to maintain its relationship and engagement with Ping An Group and its related parties, which are its strategic partner, most important customer and largest supplier; its ability to compete effectively to serve China’s financial institutions; the effectiveness of its technologies, its ability to maintain and improve technology infrastructure and security measures; its ability to protect its intellectual property and proprietary rights; its ability to maintain or expand relationship with its business partners and the failure of its partners to perform in accordance with expectations; its ability to protect or promote its brand and reputation; its ability to timely implement and deploy its solutions; its ability to obtain additional capital when desired; litigation and negative publicity surrounding China-based companies listed in the U.S.; disruptions in the financial markets and business and economic conditions; the Company’s ability to pursue and achieve optimal results from acquisition or expansion opportunities; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Use of Unaudited Non-IFRS Financial Measures

The unaudited consolidated financial information is prepared in accordance with IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) . Non-IFRS measures are used in gross profit and gross margin, adjusted to exclude non-cash items, which consist of amortization of intangible assets recognized in cost of revenue, depreciation of property and equipment recognized in cost of revenue, and share-based compensation expenses recognized in cost of revenue. OneConnect’s management regularly review non-IFRS gross profit and non-IFRS gross margin to assess the performance of our business. By excluding non-cash items, these financial metrics allow OneConnect’s management to evaluate the cash conversion of one dollar revenue on gross profit. OneConnect uses these non-IFRS financial measures to evaluate its ongoing operations and for internal planning and forecasting purposes. OneConnect believes that non-IFRS financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of results of operations, and assists in comparisons with other companies, many of which use similar financial information. OneConnect also believes that presentation of the non-IFRS financial measures provides useful information to its investors regarding its results of operations because it allows investors greater transparency to the information used by OneConnect’s management in its financial and operational decision making so that investors can see through the eyes of the OneConnect’s management regarding important financial metrics that the management uses to run the business as well as allowing investors to better understand OneConnect’s performance. However, non-IFRS financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from similarly-titled non-IFRS measures used by other companies. In light of the foregoing limitations, you should not consider non-IFRS financial measure in isolation from or as an alternative to the financial measure prepared in accordance with IFRS. Whenever OneConnect uses a non-IFRS financial measure, a reconciliation is provided to the most closely applicable financial measure stated in accordance with IFRS. You are encouraged to review the related IFRS financial measures and the reconciliation of these non-IFRS financial measures to their most directly comparable IFRS financial measures. For more information on non-IFRS financial measures, please see the table captioned “Reconciliation of IFRS and non-IFRS results (Unaudited)” set forth at the end of this press release.

Contacts

Investor Relations: 
OCFT IR Team 
OCFT_IR@ocft.com

Media Relations: 
OCFT PR Team 
pub_jryztppxcb@pingan.com.cn

 

ONECONNECT

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended

 June 30

Six Months Ended

 June 30

2024

2023

2024

2023

RMB’000

RMB’000

RMB’000

RMB’000

Continuing operations

Revenue

692,499

939,159

1,415,769

1,832,985

Cost of revenue

(439,120)

(586,774)

(889,987)

(1,145,943)

Gross profit

253,379

352,385

525,782

687,042

Research and development expenses

(186,457)

(251,893)

(399,640)

(528,039)

Selling and marketing expenses

(44,068)

(56,828)

(92,568)

(116,030)

General and administrative expenses

(65,507)

(92,904)

(146,027)

(173,117)

Net impairment losses on financial and
contract assets

(9,543)

(8,739)

(23,233)

(32,804)

Other income, gains or loss–net

13,042

19,753

30,184

46,580

Operating loss

(39,154)

(38,226)

(105,502)

(116,368)

Finance income

19,346

5,726

29,686

11,516

Finance costs

(3,710)

(5,312)

(7,988)

(11,453)

Finance income – net

15,636

414

21,698

63

Share of gain of associate and joint venture –
net

7,157

Impairment charges on associate

(7,157)

Loss before income tax

(23,518)

(37,812)

(83,804)

(116,305)

Income tax benefit/(expense)

2,435

(7,274)

2,346

(5,402)

Loss from continuing operations

(21,083)

(45,086)

(81,458)

(121,707)

Profit/(loss) from discontinued operations

260,137

(40,422)

209,499

(76,816)

Profit/(loss) for the period

239,054

(85,508)

128,041

(198,523)

Profit/(loss) attributable to:

– Owners of the Company

243,348

(81,592)

139,014

(190,465)

– Non-controlling interests

(4,294)

(3,916)

(10,973)

(8,058)

239,054

(85,508)

128,041

(198,523)

Other comprehensive income/(loss), net of
tax:

Items that may be subsequently reclassified to
profit or loss

– Foreign currency translation differences

(3,979)

(1,660)

(2,645)

(4,863)

– Exchange differences on translation of
discontinued operations

33,884

177

22,233

– Changes in the fair value of debt instruments
measured at fair value through other
comprehensive income of discontinued
operations

4,781

6,056

1,057

– Disposal of subsidiaries

18,237

18,237

Item that will not be reclassified subsequently
to profit or loss

– Foreign currency translation differences

11,866

74,846

13,808

44,191

Other comprehensive income for the period,
net of tax

26,124

11,851

35,633

62,618

Total comprehensive income/(loss) for the
period

 

265,178

 

26,343

 

163,674

 

(135,905)

Total comprehensive income/(loss)
attributable to:

– Owners of the Company

269,472

30,259

174,647

(127,847)

– Non-controlling interests

(4,294)

(3,916)

(10,973)

(8,058)

265,178

26,343

163,674

(135,905)

Total comprehensive income/(loss)
attributable to owners of the Company
arises from:

– Continuing operations

9,335

32,016

(41,085)

(74,321)

– Discontinued operations

260,137

(1,757)

215,732

(53,526)

269,472

30,259

174,647

(127,847)

Loss from continuing operations per share
attributable to the owners of the Company

(expressed in RMB per share)

– Basic and diluted

(0.02)

(0.04)

(0.06)

(0.10)

Loss from continuing operations per ADS
attributable to the owners of the Company

(expressed in RMB per share)

– Basic and diluted

(0.46)

(1.13)

(1.94)

(3.13)

Earnings/(loss) per share attributable to the
owners of the Company

(expressed in RMB per share)

– Basic and diluted

0.23

(0.07)

0.13

(0.17)

Earnings/(loss) per ADS attributable to the
owners of the Company

(expressed in RMB per share)

– Basic and diluted

6.70

(2.25)

3.83

(5.24)

 

 

 

ONECONNECT

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

June 30

December 31

2024

2023

RMB’000

RMB’000

ASSETS

Non–current assets

Property and equipment

65,832

85,076

Intangible assets

340,483

471,371

Deferred tax assets

768,398

768,276

Financial assets measured at fair value through
other comprehensive income

 

3,204

 

1,372,685

Restricted cash and time deposits over three
months

200

5,319

Prepayments and other receivables

6,962

6,663

Total non-current assets

1,185,079

2,709,390

Current assets

Trade receivables

930,258

710,669

Contract assets

79,941

95,825

Prepayments and other receivables

898,296

905,691

Financial assets measured at amortized cost from
virtual bank

3,081

Financial assets measured at fair value through
other comprehensive income

853,453

Financial assets measured at fair value through
profit or loss

640,431

925,204

Derivative financial assets

52,750

38,008

Restricted cash and time deposits over three
months

469,405

447,564

Cash and cash equivalents

1,438,886

1,379,473

Total current assets

4,509,967

5,358,968

Total assets

5,695,046

8,068,358

EQUITY AND LIABILITIES

EQUITY

Share capital

78

78

Shares held for share option scheme

(149,544)

(149,544)

Other reserves

11,027,689

10,989,851

Accumulated losses

(7,734,600)

(7,873,614)

Equity attributable to equity owners of the
Company

3,143,623

2,966,771

Non-controlling interests

(29,952)

(18,979)

Total equity

3,113,671

2,947,792

LIABILITIES

Non–current liabilities

Trade and other payables

14,379

28,283

Contract liabilities

12,901

17,126

Deferred tax liabilities

520

2,079

Total non–current liabilities

27,800

47,488

Current liabilities

Trade and other payables

2,008,719

1,981,288

Payroll and welfare payables

267,881

385,908

Contract liabilities

134,192

138,563

Short-term borrowings

142,783

251,732

Customer deposits

2,261,214

Other financial liabilities from virtual bank

54,373

Total current liabilities

2,553,575

5,073,078

Total liabilities

2,581,375

5,120,566

Total equity and liabilities

5,695,046

8,068,358

 

 

 

ONECONNECT

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended
June 30

Six Months Ended

 June 30

2024

2023

2024

2023

RMB’000

RMB’000

RMB’000

RMB’000

Net cash used in operating
activities

 

(182,757)

 

(19,650)

 

(297,993)

 

(632,914)

Net cash generated from/(used in)
investing activities

 

224,450

 

(108,947)

 

480,298

 

298,119

Net cash used in financing
activities

(28,821)

(44,480)

(129,792)

(88,901)

Net increase/(decrease) in cash and
cash equivalents

 

12,872

 

(173,077)

 

52,513

 

(423,696)

    Cash and cash equivalents at the
beginning of the period

1,420,891

1,420,891

1,379,473

1,907,776

    Effects of exchange rate changes
on cash and cash equivalents

5,123

46,159

6,900

35,433

Cash and cash equivalents at the
end of period

1,438,886

1,519,513

1,438,886

1,519,513

 

  

 

ONECONNECT

RECONCILIATION OF IFRS AND NON-IFRS RESULTS 

FOR CONTINUING OPERATIONS

(Unaudited)

Three Months Ended
June 30

Six Months Ended
June 30

2024

2023

2024

2023

RMB’000

RMB’000

RMB’000

RMB’000

Gross profit from continuing operations

253,379

352,385

525,782

687,042

Gross margin of continuing operations

36.6 %

37.5 %

37.1 %

37.5 %

Non-IFRS adjustment

Amortization of intangible assets recognized in cost
of revenue

 

13,686

 

21,374

 

29,228

 

43,583

Depreciation of property and equipment recognized
in cost of revenue

 

1,056

 

1,469

 

2,208

 

2,823

Share-based compensation expenses recognized in
cost of revenue

 

334

 

894

 

562

 

1,330

Non-IFRS gross profit from continuing operations

268,455

376,122

557,780

734,778

Non-IFRS gross margin of continuing operations

38.8 %

40.0 %

39.4 %

40.1 %

 

View original content:https://www.prnewswire.com/news-releases/oneconnect-announces-second-quarter-and-first-half-2024-unaudited-financial-results-302224276.html

SOURCE OneConnect Financial Technology Co., Ltd.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

XRP Healthcare Partners With Leading Web3 Growth and Venture Firm Victus Global to Expand Its AI Healthcare Ecosystem

Published

on

By

The First AI Healthcare Platform Built on the XRP Ledger Accelerates Expansion of Its XRPH Wallet Infrastructure, XRPHAI Rewards Framework, and Mobile-First Global Healthcare Accessibility Strategy

DUBAI, UAE, May 11, 2026 /PRNewswire/ — XRP Healthcare today announced a strategic partnership with Victus Global to support the continued expansion of the XRP Healthcare ecosystem globally.

The partnership is intended to support liquidity infrastructure, ecosystem growth, broader accessibility, and long-term expansion across the XRP Healthcare ecosystem.

Victus Global is a Web3-focused venture and growth firm specialising in liquidity infrastructure, market making, strategic growth support, and exchange expansion coordination for digital asset projects. The firm was recognised by TechBullion as one of the best-performing venture funds in Web3 and has worked with a range of emerging blockchain ecosystems across the digital asset sector.

The partnership comes at a pivotal stage in XRP Healthcare’s growth following the successful launch of XRPHAI on MEXC, the activation of live XRPHAI rewards inside the XRPH AI App, and the continued expansion of the company’s XRP-powered healthcare infrastructure.

Under the partnership, Victus Global will support the continued growth of the XRP Healthcare ecosystem through liquidity infrastructure, strategic growth coordination, market expansion support, and broader exchange growth initiatives.

XRP Healthcare was also the first platform to focus on XRP-powered healthcare payments through the XRPH Wallet ecosystem, which became operational in 2023.

The company’s expanding intellectual property and trademark portfolio includes protections covering XRP-powered healthcare payment infrastructure and related healthcare payment services across multiple jurisdictions including the United States, the United Kingdom, Europe, the UAE, and parts of Africa.

The XRP Healthcare ecosystem includes the XRPH AI App, XRPH Wallet, XRPHAI utility rewards infrastructure, healthcare participation systems, and the XRP Healthcare Prescription Savings Card.

The free XRP Healthcare Prescription Savings Card is available directly inside the XRPH AI App and provides discounts of up to 80% on eligible medications at more than 68,000 participating pharmacies across the United States, including Walgreens, CVS Pharmacy, Walmart Pharmacy, Kroger, Rite Aid, and Duane Reade.

Users currently earn XRPHAI rewards through activities including AI health assessments, CalmXRPH wellness sessions, image-based symptom scans, community referrals, and eligible Prescription Savings Card usage through XRP Healthcare’s live “Proof of Health™️” rewards framework designed to help users “Earn Rewards for Healthy Actions.”

XRP Healthcare confirmed that:

Phase 1 activated XRPHAI rewards for users completing healthy actions inside the XRPH AI App
Phase 2 introduced enhanced reward boosts for eligible XRPH and XRPHAI participants
Phase 3 expanded ecosystem accessibility through the XRPH Wallet infrastructure

With global smartphone adoption continuing to accelerate across emerging markets, XRP Healthcare believes mobile-first AI healthcare ecosystems will play an increasingly important role in expanding healthcare participation and accessibility worldwide.

“Partnering with Victus Global represents an important milestone for the XRP Healthcare ecosystem,” said Kain Roomes, Founder and CEO of XRP Healthcare.

“As we continue scaling globally, strengthening liquidity infrastructure, accessibility, and ecosystem participation becomes increasingly important. We believe this partnership supports the next phase of growth across the XRP Healthcare ecosystem as we continue expanding our infrastructure, user base, and global reach.”

Laban Roomes, COO and Co-Founder of XRP Healthcare, added:

“Over the past several years, we have quietly built real infrastructure, real utility, and a growing ecosystem designed to help bridge the gap between healthcare accessibility, AI, and blockchain technology. Our mission is to help make intelligent healthcare participation more accessible globally, particularly across underserved regions and emerging markets where mobile adoption is accelerating rapidly. We believe this partnership represents another important step forward in building infrastructure capable of reaching millions of people worldwide.”

Matisse Eykelberg, CEO of Victus Global, commented:

“We look for projects with strong leadership, clear long-term vision, real infrastructure, and the ability to scale beyond short-term market cycles. XRP Healthcare has positioned itself uniquely at the intersection of AI, healthcare, blockchain infrastructure, and real-world utility. We believe the ecosystem has significant long-term growth potential and we look forward to supporting its continued expansion.”

XRP Healthcare confirmed that additional ecosystem accessibility initiatives through the XRPH Wallet infrastructure will be announced separately.

XRPHAI currently has an initial circulating supply of 100 million tokens verified on CoinMarketCap.

XRP Healthcare believes the continued evolution of digital asset infrastructure and regulatory frameworks may create additional opportunities for blockchain-based healthcare participation and payment systems globally.

Learn More About the XRP Healthcare Ecosystem

XRPHAI Rewards Overview
XRPH Infrastructure
XRP Healthcare Prescription Savings Card
Download the XRPH AI App
Download the XRPH Wallet
XRPHAI Whitepaper

About XRP Healthcare

XRP Healthcare is the first AI healthcare platform built on the XRP Ledger, combining AI-powered healthcare engagement, XRPL-based infrastructure, rewards systems, and real-world healthcare accessibility. Its ecosystem includes the XRPH AI App, XRPH Wallet, XRPHAI utility rewards, and healthcare participation tools designed to support global accessibility with a strategic focus on emerging markets.

Media Contact 
Sarah James 
press@xrphealthcare.com 
www.xrphealthcare.ai

Continue Reading

Technology

Why Next-Gen Devices Demand a New Battery Strategy

Published

on

By

FOSHAN, China, May 11, 2026 /PRNewswire/ — At CES 2026, many of the new devices no longer fit neatly into existing categories. From GPS-enabled electric golf push carts, to “smart mirrors” that can estimate lifespan, storytelling robots that speak fluently with children, and robotic vacuum cleaners equipped with flying arms—product concepts have clearly moved into a more fluid and experimental phase.

What EqualOcean observed is a broad emergence of lighter, more personalized, and more continuously connected devices across categories. From GPS-enabled consumer hardware (including GPS trackers) and medical devices to children’s audio products, industrial handheld tools, and even security systems, a shared pattern is becoming increasingly visible: product forms are still taking shape, use cases continue to expand, and iteration remains rapid.

As a result, while companies appear to compete on features, interaction design, connectivity, and intelligence, the first bottleneck to surface in mass production, delivery, and long-term use is rarely the most visible module but the battery.

1. Battery Risk Is Being Reshaped by Real-World Scenarios

In the past, when designing consumer electronics, batteries were often treated as a “good enough” component. As long as they worked, that was enough. But at CES, several manufacturers told us that their definition of a “problem-free” battery has shifted. Passing certification alone is no longer enough; what matters is whether the battery can remain stable in real-world usage, particularly in terms of battery life and safety performance.

Taking industrial devices as an example, handheld terminals used for precious metal detection, gas sensing, and mineral tracking often need to operate in far more demanding environments. In the IoT and smart home space, the challenge is less about immediate performance and more about long-term stability, as many devices are installed once and expected to remain online around the clock with minimal maintenance.

For GPS trackers, wearables, and certain pet devices, the requirements converge around miniaturization, lightweight design, and extended uptime. Devices closer to everyday use, such as early education products and consumer devices, are far more sensitive to temperature rise, swelling risks, and overall safety. Meanwhile, medical devices, aesthetic treatment equipment, and robotics impose even stricter demands on battery consistency, stability, and safety margins. Even minor temperature increases, physical deformation, or performance fluctuations can directly affect user experience and, in some cases, introduce elevated safety risks.

As a result, battery safety is no longer a matter of a single component. It has become a key variable that can lead to safety hazards, degraded user experience, financial losses, and even reputational damage for brands.

This is not an overstatement. In a recall case disclosed by the U.S. Food and Drug Administration (FDA), a children’s wearable smart thermometer was found to carry risks of overheating and leakage of corrosive chemicals, which could potentially lead to skin irritation, burns, other serious injuries, and even death.

Separately, the U.S. Consumer Product Safety Commission (CPSC) reported that a smartwatch company received at least 115 overheating complaints and 78 burn reports in the United States, including second- and third-degree burns, due to battery overheating issues. The company was later fined USD12.25 million for failing to promptly disclose the severity of the risk.

What is becoming clear is that batteries are no longer just a cost-driven, margin-squeezed component, but a core factor underpinning product safety and brand trust.

2. The Traditional Battery Procurement Logic Is Breaking Down

Not long ago, manufacturers had relatively fixed requirements for batteries: capacity, dimensions, cost, safety standards, and cycle life. Once a product design was finalized, these parameters were largely set. But as end-product forms evolve rapidly, this traditional framework is starting to break down.

Today, manufacturers’ concerns go far beyond specifications. They care most about what could happen in worst-case scenarios.

What happens under overcharge conditions? What if the battery is stored at full charge for an extended period? In extreme scenarios such as drops, compression, puncture, high temperature, or aging, can the battery still maintain safety and stability?

These are questions that cannot be answered by a specification sheet alone, nor can they be resolved through a single compliance test.

This is also why an increasing number of device manufacturers are beginning to redefine what they expect from battery suppliers. In particular over the past few years, many new teams entering the hardware space come from software, platform, or cross-industry innovation backgrounds. They tend to place a much higher emphasis on user experience and the pace of product iteration.

Many products undergo constant iterations and revisions, with structural designs and user usage patterns evolving all the time. Some are pushing for longer battery life, some are constrained by weight and size, and others need to operate in more demanding environments.

These requirements are often difficult to define upfront. For battery manufacturers, both the customers and the products are becoming more fragmented, more varied, and more complex to support. Standardized solutions often no longer fit, while customized approaches call for early supplier engagement. In some cases, customers are even asking battery suppliers to participate directly in product design.  

3. What Kind of Battery Partner Does the Next Generation of Products Need?

After these changes, one type of company is becoming increasingly important: not a supplier that simply offers standard battery models, but a partner that can develop battery solutions around specific use cases.

Guangdong Zhaoneng Technology Co., Ltd. (ZERNE) falls into the latter category.

As a family-owned business with nearly three decades of history, many of ZERNE’s practices might appear somewhat “old-fashioned” by industry standards: proactively disclosing potential risks rather than waiting for clients to notice; refusing to sacrifice reliability for short-term orders; and before any formal agreements are signed, the team often makes multiple trips between its Chinese factories and overseas clients, all at its own expense. The goal is to fully engage in every stage of the client’s product development and production process. These approaches reflect the philosophy ingrained by the company’s founder, who spent decades in the battery industry — building deep technical expertise and manufacturing know-how while embedding a commitment to long-term thinking into the company’s culture.

Currently, ZERNE has completed its generational transition and is run by its second-generation leadership, this is more than a change in management. The family’s philosophy of long-term value creation has become part of the company’s DNA, carried forward in full through the generational shift. The new generation holds to that core, while bringing a more global perspective, a more structured approach to project management, and a sharper eye for emerging applications.

From the founder’s hands-on approach to the more structured management of the new generation, the methods have changed, but the ‘old-fashioned’ logic behind getting things done has stayed the same.

This commitment to long-term principles is what has earned ZERNE a client base of over 10,000 companies worldwide. The company serves diverse sectors, including industrial handheld devices, medical equipment, early childhood education products, smart home products, beauty devices, consumer devices, IoT devices, and robotics. ZERNE has also established lasting partnerships with leading hearing aid manufacturers and some of the top 10 GPS tracker brands.

Beyond its multi-generational heritage, what sets ZERNE apart is that it starts from the end-use scenario and defines the product solution together with the client. The team typically begins with on-site visits to the client’s overseas facility, where they discuss how the product is used, its design requirements and pain points, and review the full production line. After obtaining a complete device sample, ZERNE disassembles, tests, and analyzes the unit, then proposes a battery solution based on the product’s usage patterns, structural constraints, and operating environment. A single project often goes through two to three rounds of iteration before it is ready for production.

While this approach may seem more time-consuming and costly, it essentially brings risk management forward. What ZERNE provides is not merely the battery itself, but a set of safety-first, customized development capabilities.

Pet GPS device is a good example. Many device makers initially focus on battery life, but once the device enters real-world use, the challenges shift quickly. Pets generate frequent impacts and drops during movement, and may even chew on the device itself. The stress these behaviors place on battery structures far exceeds what laboratory testing can simulate.

Rather than simply swapping out the cells, ZERNE redesigned the battery solution around how the device is actually used. The company adopted a 4.45V high-voltage battery with a 3,000mAh capacity and introduced a double-sided ceramic separator in the winding process to better withstand physical impact and reduce the risk of fire. On top of this, ZERNE worked with the client to run tests that more closely reflected actual use, including 10 drop tests from 1.5 meters at varying angles and 504 tumble tests from 0.5 meters. Results showed no external damage, no internal tab fractures, normal voltage and internal resistance readings, stable charge-discharge performance, and no jelly roll displacement. The entire solution went through multiple rounds of iteration and validation before it was ready for mass production.

If front-end solution design determines whether a product can be built, then delivery capability determines whether it can be built consistently. On the production side, ZERNE takes an engineering-driven approach to process control: every battery that leaves the factory carries a unique QR code linked to key data points, enabling full traceability and data sharing.

In the quality inspection process, ZERNE holds itself to international standards. It uses X-ray equipment to examine internal battery structures and identify potential defects, and uses positive-pressure equipment to screen every single unit for seal integrity and electrolyte leakage.

Rather than focusing only on the finished product, ZERNE prioritizes catching risks before they leave the factory — which is a key reason behind its high standards in safety monitoring and quality control.

4. Semi-Solid State Batteries: A Safer Choice for High-Risk Applications

Children’s smart devices often face more safety challenges than ordinary consumer electronics devices.

During the implementation of a project, a European children’s device manufacturer found that its existing conventional polymer lithium battery solution, while having passed basic testing and certification, still posed abnormal heating risks at high charge levels. The company turned to ZERNE for an improved solution.

Because the product was designed for children, the client’s safety requirements were significantly higher than those for general electronics. In response, ZERNE raised the evaluation standards from “passing certification” to “remaining safe and reliable under extreme conditions such as high charge states, aging, and physical damage,” and on that basis incorporated semi-solid state batteries into its custom solution.

It is precisely in scenarios with extremely high safety requirements that the value of semi-solid state batteries becomes apparent. Compared with conventional liquid lithium batteries, semi-solid state batteries offer greater material stability. Under extreme conditions such as nail penetration, overcharging, short-circuiting, and crushing, semi-solid state batteries remain non-ignitable and non-combustible, delivering superior safety performance — making them well suited for products that demand high thermal stability and generous safety margins.

Based on its assessment of high-safety applications, ZERNE is also continuing to advance its semi-solid state battery technology. Beyond children’s devices, semi-solid state batteries are equally applicable to pet devices, industrial handhelds, medical equipment, IoT terminals, security systems, and other fields where safety standards are stringent. For these products, the semi-solid state battery represents more than a simple technology upgrade — it is a system-level improvement designed for scenarios where safety is the top priority.

5. Capability Beyond Product Delivery

ZERNE’s capabilities go beyond the product itself. The company holds a wide range of international certifications — including UL, RoHS, REACH, KC, PSE, IEC 62133, CB, IEEE, ISO 9001, ISO 14001, ISO 45001, and BSCI — helping clients navigate global market access requirements more efficiently and cutting down on the time and cost of repeated certification trials.

In terms of service, ZERNE maintains a highly proactive approach. Its management team conducts regular client visits worldwide, arriving on-site within two to three days for urgent production issues. This reflects not just after-sales responsiveness, but a custom-focused company’s commitment to project coordination and long-term relationships.

At the same time, ZERNE does not see itself as merely a battery supplier. For new product projects with growth potential, the company is willing to co-develop with clients and, when necessary, participate through funding support or investment partnerships. For ZERNE, this kind of collaboration is not just about a single battery, it is about building closer working relationships around product definition, solution refinement, and long-term implementation.

Compared with many suppliers whose focus ends at delivery, ZERNE prioritizes long-term trust over short-term orders. It turned down orders worth millions of RMB when clients couldn’t accept the cost increases required for safety solutions, and rejected substitution requests for lower-grade materials in multi-million-dollar deals. For ZERNE, maintaining a mid-to-high-end positioning and upholding safety and quality standards outweighs any pursuit of short-term gains.

6. Battery Strategy Is Becoming Product Strategy

For companies building the next generation of hardware, choosing a battery solution is becoming a more complex decision. It is no longer just about capacity and cost. It now involves product safety, user trust, global compliance, and supply chain resilience. Consequently, the true value of battery partners who understand real-world applications, balance safety and performance effectively, and commit to long-term collaboration is increasingly being recognized.

CONTACT: 
Xing Yiran
xingyiran@iyiou.com 
18835699100

View original content:https://www.prnewswire.com/news-releases/why-next-gen-devices-demand-a-new-battery-strategy-302768023.html

SOURCE EqualOcean; Guangdong Zhaoneng Technology Co., Ltd. (ZERNE)

Continue Reading

Technology

Newton Cinema Makes Cannes Market Debut and Announces Salim Ahamed’s Fifth Directorial Feature

Published

on

By

CANNES, France, May 11, 2026 /PRNewswire/ — Newton Cinema makes its Cannes market debut at Marché du Film with a screening of MAYILAA, directed by Semmalar Annam, at Lérins Cinéma Club on May 12.

This marks an international moment for Newton Cinema as it brings an auteur driven slate spanning Malayalam, Tamil, Hindi, English, French and German, built on distinct voices, artistic courage and global resonance. Booth: Palais -1, 27.03.

Newton Cinema announces LEFTOVER, Salim Ahamed’s fifth directorial feature, starring Arjun Radhakrishnan, Zarin Shihab, Tanmay Dhanania, Shweta Basu Prasad and Roshan Mathew. Written by Salim Ahamed and P. V. Shajikumar, the film features cinematography by Sharan Velayudhan, editing by A. Sreekar Prasad, music by Christo Xavier, production design by Ashik S, sound design by Vishnu Govind, costume design by Gayathri Kishore and makeup by Salam.

Salim Ahamed is best known for Adaminte Makan Abu / Abu, Son of Adam, which won four Indian National Film Awards and was India’s official entry to the Academy Awards. Earlier films include Pathemari, Kunjananthante Kada and And the Oscar Goes To…

“LEFTOVER comes from silence, memory and moral urgency,” said Salim Ahamed. “It carries pain without spectacle, dignity without explanation, and a shared human experience that transcends borders. I am grateful to introduce the film to the international industry with Newton Cinema.”

MAYILAA follows its world premiere at the International Film Festival Rotterdam and Audience Award in Toulouse. LEFTOVER’s world premiere plans will be announced in coming weeks.

Newton Cinema’s Marché slate also includes The Gambler, directed by Prasanna Vithanage, written by Vithanage and Anushka Senanayake, and starring Roshan Mathew, Shweta Basu Prasad, Prakash Raj, Mahendra Perera and Lakshan Abeynayake, with cinematography by Rajeev Ravi, editing by A. Sreekar Prasad, music by K and sound design by Tapas Nayak; The Sorbonne Conspiracy, directed by Salim Ahamed; and The Wild Hunt, from TIFF alumnus Nithin Lukose.

Newton Cinema is in final discussions with international sales representation and Indian distribution partners for the festival journeys and theatrical releases of LEFTOVER, MAYILAA and its slate.

Anto Chittilappilly, Founder, CEO and Producer of Newton Cinema, said: “We are building a home for auteur cinema, for filmmakers whose work carries a signature and a conscience. With LEFTOVER, MAYILAA and our upcoming slate, we aim to stand with independent filmmakers, protect difficult and necessary stories, and bring voices from the margins into world cinema.”

Newton Cinema is an international production house for auteur cinema, independent filmmakers and underrepresented voices, with offices in Los Angeles, San Francisco, Boston, Colombo, Sri Lanka, and Kochi, India.

Media Contact: press@newtoncinema.com | www.newtoncinema.com | @newton_cinema

Photo: https://mma.prnewswire.com/media/2976502/Salim_Ahamed_Newton_Cinema.jpg

 

View original content:https://www.prnewswire.com/news-releases/newton-cinema-makes-cannes-market-debut-and-announces-salim-ahameds-fifth-directorial-feature-302767980.html

SOURCE Newton Cinema

Continue Reading

Trending