Technology

OneConnect Announces Fourth Quarter and Full Year 2024 Unaudited Financial Results

Published

1 year ago

March 18, 2025

SHENZHEN, China, March 18, 2025 /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.

Fourth Quarter 2024 Financial Highlights

Revenue from continuing operations[1] was RMB415 million, compared to RMB882 million during the same period last year.Gross margin of continuing operations was 34.2%, compared to 39.0% during the same period last year; non-IFRS gross margin of continuing operations was 36.5%, compared to 40.8% during the same period last year.

Full Year 2024 Financial Highlights

Revenue from continuing operations was RMB2,248 million, compared to RMB3,522 million for the prior year.Gross margin of continuing operations was 35.8%, compared to 37.7% for the prior year; non-IFRS gross margin of continuing operations was 38.2%, compared to 40.4% for the prior year.Net loss from continuing operations attributable to shareholders was RMB669 million, compared to RMB211 million for the prior year. The increased net loss is mainly attributable to (i) an increase in impairment losses of goodwill of approximately RMB132 million, and (ii) a reversal of deferred income tax assets of approximately RMB454 million. Net margin of continuing operations to shareholders was -29.8%, compared to -6.0% for the prior year.Net loss from continuing operations per basic and diluted ADS was RMB-18.42, compared to RMB-5.82 for the prior year.Net loss from continuing and discontinued operations attributable to shareholders was RMB460 million, compared to a net loss of RMB363 million for the prior year. Net margin of continuing and discontinued operations to shareholders was -20.4%, compared to -10.3% for the prior year.Net loss from continuing and discontinued operations per basic and diluted ADS was RMB-12.66, compared to RMB-9.99 for the prior 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 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.

In RMB’000, except percentages
and per ADS amounts

Three Months Ended

December 31

Yaer Ended

YoY

December 31

YoY

2024

2023

2024

2023

Continuing operations

Revenue

Revenue from Ping An Group and

Lufax[1]

190,822

561,128

-66.0 %

1,307,064

2,360,108

-44.6 %

Revenue from third-party customers[2]

224,405

320,771

-30.0 %

941,039

1,161,483

-19.0 %

Total

415,227

881,899

-52.9 %

2,248,103

3,521,591

-36.2 %

Gross profit

142,153

343,726

804,497

1,326,017

Gross margin

34.2 %

39.0 %

35.8 %

37.7 %

Non-IFRS gross margin

36.5 %

40.8 %

38.2 %

40.4 %

Operating loss

(147,741)

(45,063)

(303,533)

(217,285)

Operating margin

-35.6 %

-5.1 %

-13.5 %

-6.2 %

Net loss from continuing operations

attributable to shareholders

(569,181)

(46,899)

(669,176)

(211,342)

Net margin of continuing operations to

shareholders

-137.1 %

-5.3 %

-29.8 %

-6.0 %

Loss from continuing operations per

ADS[3], basic and diluted

(15.67)

(1.29)

(18.42)

(5.82)

Net loss from continuing and

discontinued operations attributable to

shareholders

(569,181)

(81,349)

(459,677)

(362,715)

Net margin of continuing and

discontinued operations to shareholders

-137.1 %

-9.2 %

-20.4 %

-10.3 %

Loss from continuing and discontinued

operations per ADS, basic and diluted

(15.67)

(2.24)

(12.66)

(9.99)

[1] Reference is made to the announcement made by Ping An Group on October 21, 2024. Lufax became a subsidiary of Ping An Group on July 30, 2024. Therefore, the Company’s revenue from Ping An Group shown in this table included revenue from Lufax since July 30, 2024. Revenue from Lufax for the year ended December 31, 2024 prior to its consolidation into Ping An Group was approximately RMB116 million.

[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.

Revenue from Continuing Operations Breakdown

Three Months Ended

Full Year Ended

In RMB’000, except percentages

December 31

YoY

December 31

YoY

2024

2023

2024

2023

Implementation

170,991

216,357

-21.0 %

664,127

834,620

-20.4 %

Transaction-based and support revenue

Business origination services

1,317

23,723

-94.4 %

30,078

132,112

-77.2 %

Risk management services

60,905

92,934

-34.5 %

247,828

320,462

-22.7 %

Operation support services

144,918

194,189

-25.4 %

549,273

861,056

-36.2 %

Cloud services platform

5,051

334,076

-98.5 %

618,088

1,245,952

-50.4 %

Post-implementation support services

19,560

12,839

52.3 %

69,064

52,012

32.8 %

Others

12,485

7,781

60.5 %

69,645

75,377

-7.6 %

Sub-total for transaction-based and support

revenue

244,236

665,542

-63.3 %

1,583,976

2,686,971

-41.0 %

Total Revenue from Continuing Operations

415,227

881,899

-52.9 %

2,248,103

3,521,591

-36.2 %

Revenue from continuing operations was RMB415 million in the fourth quarter of 2024, a decrease of 52.9% from RMB882 million during the same period last year, primarily due to a decrease of RMB329 million in revenue from cloud services platform. Implementation revenue was RMB171 million in the fourth quarter of 2024, a decrease of 21.0% from RMB216 million during the same period last year, mainly due to a decrease in demand for implementation of financial services systems in China. Revenue from business origination services was RMB1 million in the fourth quarter of 2024, a decrease of 94.4% from RMB24 million during the same period last year, primarily due to a decrease in transaction volumes from loan origination systems under digital credit management solutions. Revenue from risk management services was RMB61 million in the fourth quarter of 2024, a decrease of 34.5% from RMB93 million during the same period last year, mainly due to a decrease in transaction volumes from banking related risk analytic solutions. Revenue from operation support services was RMB145 million in the fourth quarter of 2024, a decrease of 25.4% from RMB194 million during the same period last year, primarily due to a shift in business model for a number of auto ecosystem service providers where the Company transitioned from acting as a contractor to a distributor, which impacted revenue recognition. Revenue from cloud services platform was RMB5 million in the fourth quarter of 2024, a decrease of 98.5% from RMB334 million during the same period last year, primarily due to the strategic phasing out of the cloud services since July 2024, details of which were previously disclosed in our announcement dated July 11, 2024 regarding an update on our business operations. Revenue from post-implementation support services was RMB20 million in the fourth quarter of 2024, an increase of 52.3% from RMB13 million during the same period last year, primarily due to increased demand for our post-implementation support services from our overseas customers.

Three Months Ended

Full Year Ended

In RMB’000, except percentages

December 31

YoY

December 31

YoY

2024

2023

2024

2023

Digital Banking segment

92,240

247,131

-62.7 %

459,584

941,901

-51.2 %

Digital Insurance segment

140,962

140,720

0.2 %

542,450

657,213

-17.5 %

Gamma Platform segment

182,025

494,047

-63.2 %

1,246,069

1,922,477

-35.2 %

Total Revenue from Continuing

Operations

415,227

881,899

-52.9 %

2,248,103

3,521,591

-36.2 %

Revenue from Gamma Platform segment was RMB182 million in the fourth quarter of 2024, a decrease of 63.2% from RMB494 million during the same period last year, primarily due to the strategic phasing out of cloud services. Revenue from Digital Banking segment was RMB92 million in the fourth quarter of 2024, a decrease of 62.7% from RMB247 million during the same period last year, mainly due to a decrease in transaction volumes from business origination and risk management services. Revenue from Digital Insurance segment was RMB141 million in the fourth quarter of 2024, an increase of 0.2% from RMB141 million during the same period last year, remaining relatively stable compared to the same period last year.

Fourth Quarter 2024 Financial Results

Revenue from Continuing Operations

Cost of Revenue from Continuing Operations

Cost of revenue from continuing operations was RMB273 million in the fourth quarter of 2024, a decrease of 49.3% from RMB538 million during the same period last year, generally in line with the decrease in revenue.

Gross Profit from Continuing Operations

Gross profit from continuing operations was RMB142 million in the fourth quarter of 2024, compared to RMB344 million during the same period last year. Gross margin of continuing operations was 34.2%, compared to 39.0% in the prior year. The decrease in gross margin of continuing operations was mainly due to reduction in economies of scale caused by the decrease in revenue. Non-IFRS gross margin of continuing operations was 36.5%, compared to 40.8% 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 were RMB165 million in the fourth quarter of 2024, compared to RMB391 million during the same period last year. As a percentage of revenue, total operating expenses from continuing operations decreased by 4.6ppt to 39.7% from 44.3% during the same period last year.

Research and Development expenses from continuing operations were RMB41 million in the fourth quarter of 2024, compared to RMB197 million during the same period last year. The decline was mainly due to the Company’s proactive adjustment of its business structure and its return on investment driven approach to manage research and development projects. As a percentage of revenue, research and development expenses from continuing operations decreased to 10.0% from 22.3% in the prior year.Sales and Marketing expenses from continuing operations were RMB39 million in the fourth quarter of 2024, compared to RMB59 million during the same period last year. The decline was mainly due to a decrease in personnel costs and advertising expenses. As a percentage of revenue, sales and marketing expenses from continuing operations increased to 9.4% from 6.7% in the prior year.General and Administrative expenses from continuing operations were RMB84 million in the fourth quarter of 2024, compared to RMB134 million during the same period last year. The decline was mainly due to a decrease in personnel costs. As a percentage of revenue, general and administrative expenses from continuing operations increased to 20.3% from 15.2% during the same period last year.

Operating loss from continuing operations was RMB148 million in the fourth quarter of 2024, compared to RMB45 million during the same period last year. Operating margin of continuing operations was -35.6%, compared to -5.1% in the prior year.

Net Loss from Continuing Operations Attributable to Shareholders

As a result of the discontinuation of its cloud services, the Company’s revenue has experienced a year-on-year decline since the third quarter as the Company continues to phase out its cloud services. The Company carries out regular business review, during which, the Company has re-assessed the relevant recoverable amount of the assets on its balance sheet as of December 31, 2024 and considered that goodwill impairment and a reversal of deferred income tax assets is appropriate for the quarter. As a result, net loss from continuing operations attributable to OneConnect’s shareholders was RMB569 million in the fourth quarter of 2024, compared to RMB47 million during the same period last year. Net loss from continuing operations attributable to OneConnect’s shareholders per basic and diluted ADS was RMB-15.67, compared to RMB-1.29 during the same period last year. Weighted average number of ordinary shares in the fourth quarter of 2024 was 1,089,589,125.

Cash Flow

For the fourth quarter of 2024, net cash generated from operating activities was RMB55 million, net cash generated from investing activities was RMB260 million, and net cash used in financing activities was RMB46 million.

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended

December 31

Full Year Ended

December 31

2024

2023

2024

2023

RMB’000

Continuing operations

Revenue

415,227

881,899

2,248,103

3,521,591

Cost of revenue

(273,074)

(538,173)

(1,443,606)

(2,195,574)

Gross profit

142,153

343,726

804,497

1,326,017

Research and development expenses

(41,463)

(196,973)

(510,898)

(955,201)

Selling and marketing expenses

(39,052)

(59,292)

(177,285)

(241,612)

General and administrative expenses

(84,388)

(134,283)

(305,110)

(375,128)

Net impairment losses on financial and

contract assets

(3,430)

(7,289)

(31,255)

(40,544)

Other income, gains or loss – net

(121,561)

9,048

(83,482)

69,183

Operating loss

(147,741)

(45,063)

(303,533)

(217,285)

Finance income

19,660

10,001

67,484

29,580

Finance costs

(1,342)

(6,167)

(13,289)

(20,086)

Finance income – net

18,318

3,834

54,195

9,494

Share of gains of associate and joint venture

– net

–

4,607

Impairment charges on associate

–

(7,157)

Loss before income tax

(129,423)

(41,229)

(249,338)

(210,341)

Income tax expense

(457,904)

(3,019)

(455,368)

(9,762)

Loss for the period from continuing

operations

(587,327)

(44,248)

(704,706)

(220,103)

Discontinued operations

(Loss)/profit from discontinued operations

(attributable to owners of the Company)

–

(34,450)

209,499

(151,373)

Loss for the period

(587,327)

(78,698)

(495,207)

(371,476)

(Loss)/profit attributable to:

– Owners of the Company

(569,181)

(81,349)

(459,677)

(362,715)

– Non-controlling interests

(18,146)

2,651

(35,530)

(8,761)

(587,327)

(78,698)

(495,207)

(371,476)

(Loss)/profit attributable to owners of the Company arises from:

– Continuing operations

(569,181)

(46,899)

(669,176)

(211,342)

– Discontinued operations

–

(34,450)

209,499

(151,373)

(569,181)

(81,349)

(459,677)

(362,715)

Other comprehensive income/(loss), net of

tax:

Items that may be subsequently reclassified

to profit or loss

– Foreign currency translation differences of

continuing operations

2,225

(188)

(2,702)

(5,744)

– Exchange differences on translation of

discontinued operations

–

(9,414)

177

9,624

– Changes in the fair value of debt

instruments measured at fair value through

other comprehensive income of discontinued

operations

–

(3,856)

6,056

500

– Disposal of subsidiaries

–

18,237

–

Item that will not be reclassified

subsequently to profit or loss

– Foreign currency translation differences

50,280

(14,541)

31,636

22,336

– Changes in the fair value of equity

instruments measured at fair value

through other comprehensive income

(3,204)

–

(3,204)

–

Other comprehensive income/(loss) for the

period, net of tax

49,301

(27,999)

50,200

26,716

Total comprehensive loss for the period

(538,026)

(106,697)

(445,007)

(344,760)

Total comprehensive (loss)/income for the

period attributable to:

– Owners of the Company

(519,880)

(109,348)

(409,477)

(335,999)

– Non-controlling interests

(18,146)

2,651

(35,530)

(8,761)

(538,026)

(106,697)

(445,007)

(344,760)

Loss per share for loss from continuing

operations attributable to the owners of

the Company

(expressed in RMB per share)

– Basic and diluted

(0.52)

(0.04)

(0.61)

(0.19)

Loss per ADS for loss from continuing

operations attributable to the owners of

the Company

(expressed in RMB per share)

– Basic and diluted

(15.67)

(1.29)

(18.42)

(5.82)

Loss per share for loss attributable to the

owners of the Company

(expressed in RMB per share)

– Basic and diluted

(0.52)

(0.07)

(0.42)

(0.33)

Loss per ADS for loss attributable to the

owners of the Company

(expressed in RMB per share)

– Basic and diluted

(15.67)

(2.24)

(12.66)

(9.99)

ONECONNECT

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

December 31

2024

2023

RMB’000

ASSETS

Non–current assets

Property and equipment

43,895

85,076

Intangible assets

195,636

471,371

Deferred tax assets

313,805

768,276

Financial assets measured at fair value through

other comprehensive income

–

1,372,685

Restricted cash and time deposits over three

months

–

5,319

Prepayments and other receivables

6,506

6,663

Trade receivables

10,106

–

Total non-current assets

569,948

2,709,390

Current assets

Trade receivables

496,429

710,669

Contract assets

63,420

95,825

Prepayments and other receivables

342,221

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

455,016

925,204

Derivative financial assets

40,356

38,008

Restricted cash and time deposits over three

months

51,940

447,564

Cash and cash equivalents

1,947,922

1,379,473

Total current assets

3,397,304

5,358,968

Total assets

3,967,252

8,068,358

EQUITY AND LIABILITIES

EQUITY

Share capital

Shares held for share option scheme

(149,544)

Other reserves

11,041,209

10,989,851

Accumulated losses

(8,333,291)

(7,873,614)

Equity attributable to equity owners of the

Company

2,558,452

2,966,771

Non-controlling interests

(54,509)

(18,979)

Total equity

2,503,943

2,947,792

LIABILITIES

Non–current liabilities

Trade and other payables

10,670

28,283

Contract liabilities

12,946

17,126

Deferred tax liabilities

–

2,079

Total non–current liabilities

23,616

47,488

Current liabilities

Trade and other payables

993,842

1,981,288

Payroll and welfare payables

311,190

385,908

Contract liabilities

115,501

138,563

Short-term borrowings

19,160

251,732

Customer deposits

–

2,261,214

Other financial liabilities from virtual bank

–

54,373

Total current liabilities

1,439,693

5,073,078

Total liabilities

1,463,309

5,120,566

Total equity and liabilities

3,967,252

8,068,358

ONECONNECT

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended

December 31

Full Year Ended

December 31

2024

2023

2024

2023

RMB’000

Net cash generated from/(used in)

operating activities

55,225

174,099

(276,849)

(648,461)

Net cash generated from/(used in)

investing activities

260,463

(197,255)

1,106,256

318,634

Net cash used in financing

activities

(46,404)

(32,373)

(282,252)

(213,605)

Net increase/(decrease) in cash and

cash equivalents

269,284

(55,529)

547,155

(543,432)

Cash and cash equivalents at the

beginning of the period

1,643,654

1,451,556

1,379,473

1,907,776

Effects of exchange rate changes

on cash and cash equivalents

34,984

(16,554)

21,294

15,129

Cash and cash equivalents at the

end of period

1,947,922

1,379,473

1,947,922

1,379,473

ONECONNECT

RECONCILIATION OF IFRS AND NON-IFRS RESULTS

FOR CONTINUING OPERATIONS

(Unaudited)

Three Months Ended

December 31

Full Year Ended

December 31

2024

2023

2024

2023

RMB’000

Gross profit from continuing operations

142,153

343,726

804,497

1,326,017

Gross margin of continuing operations

34.2 %

39.0 %

35.8 %

37.7 %

Non-IFRS adjustment

Amortization of intangible assets recognized in cost

of revenue

8,933

13,376

49,162

87,928

Depreciation of property and equipment recognized

in cost of revenue

848

1,595

4,030

5,567

Share-based compensation expenses recognized in

cost of revenue

(525)

778

3,233

Non-IFRS gross profit from continuing operations

151,409

359,475

857,776

1,422,745

Non-IFRS gross margin of continuing operations

36.5 %

40.8 %

38.2 %

40.4 %

View original content:https://www.prnewswire.com/news-releases/oneconnect-announces-fourth-quarter-and-full-year-2024-unaudited-financial-results-302404431.html

SOURCE OneConnect Financial Technology Co., Ltd.

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Published

43 minutes ago

July 25, 2026

Hyundai Motor Group shares roadmap for realizing its Physical AI vision and collaboration strategy with global tech leaders at the San Francisco AI SummitExecutive Chair Euisun Chung presented, “Hyundai Motor Group is evolving beyond the traditional boundaries of automotive manufacturing to become a Physical AI solution company,” adding, “The ultimate Physical AI vision we pursue is the realization of integrated intelligence at the city level”The Group to leverage manufacturing competitiveness and leading robotics capabilities centered on Boston Dynamics, while establishing a data flywheel system connecting real-world operational data with continuous AI model advancementThe Group to leverage strategic partnerships with global technology leaders, including NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMindThe Group to collaborate with NVIDIA to develop a Robot Reference Platform that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities

… The initiative to support Korea’s Physical AI industry through an open ecosystem

The Group to cultivate strategic domestic hubs through investments in Saemangeum AI Valley and future advanced industries in Korea’s Yeongnam region

SAN FRANCISCO, July 25, 2026 /PRNewswire/ — Hyundai Motor Group (the Group) Executive Chair Euisun Chung today outlined the Group’s vision and strategy for Physical AI at the San Francisco AI Summit held in San Francisco, California.

The event brought together approximately 150 attendees, including Executive Chair Chung, business leaders from major Korean companies, executives from leading U.S. technology firms, startup representatives and students.

At the summit, Executive Chair Chung presented the Group’s roadmap for advancing Physical AI and outlined strategic collaboration plans with global technology leaders.

“Hyundai Motor Group is evolving beyond the traditional boundaries of automotive manufacturing by expanding into autonomous driving, robotics and AI Defined Factories, accelerating our transformation into a Physical AI solution company.” — Hyundai Motor Group Executive Chair Euisun Chung

Accelerating the Transition to a Physical AI Solution Company

Hyundai Motor Group’s Physical AI vision extends beyond intelligent devices such as vehicles and robots to intelligent spaces, including AI factories where AI seamlessly connects and optimizes entire operations. Ultimately, the Group envisions integrated intelligence at the city level, where urban infrastructure is organically connected and operated through AI.

A key differentiator for the Group is its ability to create a data flywheel that continuously connects real-world operations with AI advancement. Drawing on extensive experience in large-scale manufacturing, mobility, robotics and service operations, the Group is positioned to deploy, refine and scale Physical AI technologies in real industrial environments.

Executive Chair Chung also outlined strategic partnerships with leading technology companies, including NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMind, to further advance Physical AI capabilities.

By combining Hyundai Motor Group’s manufacturing competitiveness, mobility and robotics technologies and extensive operational data with the AI infrastructure and algorithm capabilities of global technology leaders, the Group aims to help foster a new innovation ecosystem for the Physical AI era.

Executive Chair Chung also introduced initiatives designed to support the growth of Korea’s robotics and AI ecosystem, including the development of a Robot Reference Platform with NVIDIA that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities, as well as investments in initiatives such as the Saemangeum AI Valley.

Physical AI Vision: From Intelligent Devices to Integrated Intelligence at the City Level

During the summit, Executive Chair Chung presented Hyundai Motor Group’s Physical AI vision.

“The ultimate Physical AI vision Hyundai Motor Group pursues begins with intelligent devices such as vehicles and robots, expands to intelligent spaces such as AI factories, and ultimately realizes integrated intelligence at the city level, where urban infrastructure is seamlessly connected and operated.” — Hyundai Motor Group Executive Chair Chung

The Group’s vision begins with intelligent devices, where AI capabilities enhance vehicles and robots. It then expands to intelligent spaces, including AI factories where AI autonomously integrates logistics, production and quality management across entire operations.

Ultimately, Hyundai Motor Group envisions city-level intelligence, where critical infrastructure and assets — including energy, mobility and robotics systems — are connected and optimized in real time.

Executive Chair Chung also highlighted the Group’s key strengths in realizing its Physical AI vision:

World-class manufacturing competitiveness: Hyundai Motor Group has built extensive expertise through decades of operating global manufacturing facilities, managing quality systems and optimizing supply chains. This foundation enables the Group to apply AI technologies to products, processes and services while rapidly validating and scaling innovations in real-world environments.Leading robotics capabilities: Hyundai Motor Group has established robotics as a key pillar of its future business portfolio. Boston Dynamics’ quadruped robot Spot®, logistics robot Stretch®, and Hyundai Motor Group Robotics LAB’s next-generation mobile robot platform MobED are recognized for combining technological competitiveness with real-world applicability.

In particular, the humanoid robot Atlas® is emerging as a representative example of Physical AI, supporting and collaborating with people across manufacturing, logistics and mobility environments.

Establishing a data flywheel system: Hyundai Motor Group is establishing a data flywheel system that leverages data generated across manufacturing operations, vehicles, logistics systems and robotics demonstrations to continuously advance AI models. Enhanced algorithms are then reapplied to real-world operations, creating a virtuous cycle that improves performance and strengthens Physical AI capabilities.

Accelerating the Future of Physical AI Through Partnerships with Global Tech Leaders

Executive Chair Chung also outlined concrete initiatives to position Hyundai Motor Group as a leader in human-centered Physical AI through strategic collaborations with NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMind.

“By combining Hyundai Motor Group’s strengths in manufacturing, robotics and data with the capabilities of global technology leaders, we can help create a new innovation ecosystem for the Physical AI era.” — Hyundai Motor Group Executive Chair Euisun Chung

NVIDIA – Advancing Physical AI infrastructure and talent development

Hyundai Motor Group is expanding collaboration with NVIDIA to strengthen Physical AI infrastructure and cultivate AI talent. Building on a supply agreement for 50,000 NVIDIA Blackwell GPUs and a memorandum of understanding signed last year to advance Korea’s Physical AI capabilities, the Group is pursuing a range of initiatives, including the establishment of Hyundai Motor Group Robot Application Center, as well as various collaborations aimed at strengthening Korea’s Physical AI infrastructure and AI talent ecosystem, including the NVIDIA’s AI Technology Center.

In manufacturing, the Group is leveraging NVIDIA’s platform to create more sophisticated digital twins of production facilities, enhancing process design, operational optimization and validation efficiency. The collaboration also includes the integration of NVIDIA’s autonomous driving solutions, including automotive semiconductors, sensors and architecture, with Hyundai Motor Group vehicle platforms.

Waymo – Strengthening autonomous driving collaboration

Hyundai Motor Group continues to strengthen its strategic partnership with Waymo in the autonomous driving sector to support the development of a safe and innovative autonomous driving ecosystem. Autonomous driving vehicles require a wide range of specialized capabilities, including redundant systems for steering, braking, power and communications, dedicated features such as power-operated doors, as well as enhanced functional safety and cybersecurity technologies.

Hyundai Motor Group plans to produce IONIQ 5 vehicles with specific autonomous-ready modifications at Hyundai Motor Group Metaplant America (HMGMA) in Georgia.

Google DeepMind – Accelerating next-generation humanoid robotics

Boston Dynamics has established a strategic partnership with Google DeepMind to accelerate the development of next-generation humanoid robots. Advanced AI models and training systems are essential for robots to perform complex tasks in real-world environments and collaborate effectively with people. Through this partnership, Boston Dynamics robots are expected to achieve greater autonomy and adapt more effectively to complex operating environments.

Hyundai Motor Group plans to establish a robot production facility in the U.S. with an annual capacity of up to 30,000 units by 2028. The Atlas humanoid robot will first be deployed at production facilities including HMGMA before broader deployment is expanded through phased validation.

Building an Open Ecosystem Through the Robot Reference Platform and Continued Investment in Korea’s Physical AI Future

Executive Chair Chung also outlined initiatives aimed at supporting the growth of Korea’s Physical AI ecosystem through open collaboration and continued investment.

“The outcomes of collaboration with global technology leaders should contribute to the growth of Korea’s Physical AI industry. To that end, Hyundai Motor Group plans to foster an open ecosystem that supports innovation in robotics and AI technologies.” — Hyundai Motor Group Executive Chair Euisun Chung

Key initiatives to build an open ecosystem for robotics and AI innovation include:

Robot Reference Platform: Hyundai Motor Group and NVIDIA are collaborating to develop a Robot Reference Platform that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities.

The platform will provide research robot models to universities, research institutes and startups, helping foster an open ecosystem that supports technological innovation and the development of Physical AI talent while contributing to the broader growth of Korea’s robotics and AI industries.

Supporting universities, research institutes and startups: The Robot Reference Platform is expected to provide universities, research institutes and startups with a standardized hardware and software environment, enabling them to more easily develop and validate Physical AI technologies. The initiative aims to help address challenges faced by organizations with innovative ideas but limited access to commercialization opportunities and validation infrastructure.

Hyundai Motor Group is also continuing large-scale investments aimed at driving the next leap forward in Korea’s industrial and technology ecosystem. Continued investments in Korea’s industrial and technology ecosystem include:

Saemangeum AI Valley: In the Saemangeum region of Jeonbuk State, the Group is developing Saemangeum AI Valley, which includes an approximate KRW 9 trillion investment in AI data centers, robotics manufacturing clusters, electrolyzer plants and AI hydrogen city infrastructure.

In particular, the robotics manufacturing cluster will serve not only as a production base for the Group’s own robotics products, but also as a robotics foundry that provides manufacturing services for small and medium-sized enterprises that lack manufacturing expertise.

Advanced industrial hubs in the Yeongnam region: Hyundai Motor Group plans to invest a total of KRW 42 trillion over the next decade to foster advanced industrial hubs focused on AI-driven manufacturing, future aerospace industries and sustainable energy infrastructure.

Through these initiatives, Hyundai Motor Group aims to strengthen key foundations for the Physical AI era, including data and energy infrastructure, robotics production capabilities and real-world validation capabilities. The Group also expects these investments to contribute to enhanced industrial competitiveness, balanced regional development, job creation and broader economic vitality in Korea.

About Hyundai Motor Group

Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT, and service. With about 250,000 employees worldwide, the Group’s mobility brands include Hyundai, Kia, and Genesis. Armed with creative thinking, cooperative communication, and the will to take on any challenges, we strive to create a better future for all.

More information about Hyundai Motor Group can be found at: http://www.hyundaimotorgroup.com or Newsroom: Media Hub by Hyundai, Kia Global Newsroom, Genesis Newsroom

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SOURCE Hyundai Motor Company

Technology

Tencent Brings Together AI and Games to Help Preserve and Share Cultural Heritage of New UNESCO Site in Jingdezhen

Published

2 hours ago

July 25, 2026

Tencent applies AI and games to protect, reconstruct, and promote one of the world’s oldest porcelain traditions at newly inscribed UNESCO siteDigital initiatives create a new model for technology-driven heritage preservation globally using a multimodal AI dataset, AI-assisted artifact restoration, and interactive virtual experiences

SHENZHEN, China, July 25, 2026 /PRNewswire/ — Tencent (00700.HK) today announced the launch of Digital Jingdezhen: Porcelain Craft Adventure, an AI-powered cultural heritage game that enables users to explore Jingdezhen’s porcelain-making traditions and experience traditional craft techniques through interactive play. The launch coincides with the inscription of the Jingdezhen Handicraft Porcelain Industry Sites on the United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage List.

Digital Jingdezhen is part of a broader cultural innovation initiative that applies Tencent’s AI and game technologies. Guided by Tencent’s vision of “Tech for Good”, the initiative leverages digital preservation to keep Jingdezhen’s thousand-year-old porcelain culture alive and relevant today, creating a living heritage with sustainable value and broad public engagement, and building a model that could be carried to heritage sites around the world.

Digital Preservation: Restoring and Unlocking Heritage with AI

Jingdezhen has a thousand years of living heritage; centuries of tradition are still active in its kilns today. To preserve this legacy, a cornerstone of the project was the Jingdezhen Porcelain Cultural Heritage Multimodal AI Dataset.

Over decades, historical records, heritage information, and craft specifications have accumulated into a massive volume of data. Tencent applied Optical Character Recognition (OCR), Natural Language Processing (NLP), and knowledge graph technologies to transform these dispersed materials into structured digital resources that can be analyzed, extracted, verified, and traced back to their original sources.

The dataset contains more than 30,000 documentary records, over 5,000 ceramic gene specimens, and data on nearly 1,000 representative ceramic artifacts in collections worldwide. It provides a digital foundation for cultural research, exhibition development, public interpretation and AI-powered heritage applications.

Building on this foundation, Tencent has developed a range of industry- and public-facing applications, including the Jingdezhen Ancient Ceramics Gene Database, the World Ceramics Interactive Map, and the Digital Jingdezhen AI Companion, providing researchers, heritage professionals, and the public with innovative AI-powered tools to explore and understand porcelain heritage.

Digital Activation: Bringing Jingdezhen’s Porcelain Heritage to Life Through AI and Games

To bring the public closer to Jingdezhen and its porcelain-making traditions, Digital Jingdezhen: Porcelain Craft Adventure utilizes AI-assisted Procedural Content Generation (PCG) to create the first large-scale digital recreation of the city’s five major porcelain heritage sites and historical production scenes. By rapidly mapping out town layouts and automatically generating architectural structures, decorative elements, and pedestrians, the technology brings Jingdezhen’s historic townscape back to life in the digital world.

The game also features high-quality AI digital humans built on large language models and the Jingdezhen Porcelain Cultural Heritage Multimodal AI Dataset. Through AI voice-driven facial expressions and Tencent Games’ proprietary animation technology, it creates warm, human-centered interactive experiences that make historical knowledge tangible and relatable. At the same time, AI-powered 3D generation allows users to quickly transform an uploaded image into a 3D porcelain form, lowering the barrier to participation and enabling anyone to turn creative inspiration into tangible ceramic forms in the digital space.

Continuing Heritage: Mobilizing the Community

Ensuring the longevity of Jingdezhen’s legacy requires active public participation. Tencent developed the Digital Heritage Guardian (Jingdezhen), a volunteer program built within the Weixin ecosystem. The program enables the public to support the upkeep and stewardship of physical heritage sites, creating a practical channel for community involvement in heritage protection.

“Our work in Jingdezhen is a testament to how ‘AI for Good’ can breathe new life into ancient traditions,” said Zhan Shu, Head of Digital Culture Lab, Tencent. “Working alongside dedicated heritage experts, we have contributed our capabilities in AI and digital technologies to unlock decades of dormant archives for this incredible new UNESCO site. We are proud to help bridge the gap between the thousand-year porcelain heritage and the digital era, creating new ways for the global public to connect with Jingdezhen’s living history, and a model for heritage sites worldwide.”

For media queries, please contact: gc@tencent.com

About Tencent

Tencent is a global technology and entertainment company focused on creating connections and experiences that matter. Founded in 1998, Tencent is driven by its mission to create “Value for Users” and apply “Tech for Good.”

Tencent’s communication and social services connect more than one billion people around the world, helping them to keep in touch with friends and family, access transportation, pay for daily necessities, and even be entertained. Tencent also develops and publishes some of the world’s most popular video games and other high-quality digital content, delivering rich and immersive interactive entertainment experiences. Tencent also offers a range of services such as cloud computing and other enterprise services to support our clients’ digital transformation and business growth. Headquartered in Shenzhen, Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since June 2004.

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SOURCE Tencent