OneConnect Financial Technology Co., Ltd. (NYSE: OCFT), an established technology-as-a-service platform for financial institutions based in China, has released its unaudited financial results for Q2 2021 and H1 for the period ending June 30, 2021.
As noted by OneConnect, revenue surged 25.0% YoY to RMB968 million (appr. $150 million) from RMB774 million ($120 million).
Gross margin came in at 34.1%, “as compared to 38.4% for the same period last year; non-IFRS gross margin1 was 42.3%, as compared to 47.5% for the same period last year,” the Chinese Fintech firm noted in a release.
The company also mentioned that operating loss “was RMB395 million, as compared to RMB361 million for the same period last year.” Net loss attributable to shareholders “was RMB349 million, as compared to RMB331 million for the same period last year.”
As mentioned in the update, net loss per share, basic and diluted, “was RMB0.31, as compared to RMB0.32 for the same period last year.”
Ye Wangchun, Chair and CEO at OneConnect, stated:
“The management team worked diligently in the second quarter, to address changes from further regulatory tightening, the shift in customer needs and the operating environment. Despite these challenges, our revenue rose by 25% year over year to RMB968 million, benefiting from our diversified suite of solutions. In the second half of the year, we will continue to strengthen the management of products and customers, to ensure that our business can continue to deliver stable performance amid any external uncertainty.”
CFO Luo Yongtao added:
“We are delighted to see the progress from optimization. We now have a much healthier base of solutions and customers. While gross margin fell from 38.4% to 34.1% year over year in the second quarter due to change in mix of solutions, the ratio held steady sequentially to the first quarter. With the scale that we are building and cost discipline, net loss ratio further narrowed, from 42.7% to 36.1% year over year in the quarter, and we expect the improving trend to continue.”
While sharing operational highlights, the company revealed that retail loans processed “amounted to RMB17.7 billion in the second quarter, as compared to RMB20.6 billion for the same period last year.” SME loans processed “amounted to RMB9.1 billion in the second quarter, as compared to RMB8.4 billion for the same period last year.”
As confirmed in the release, the number of fast claims checks “amounted to 1.65 million in the second quarter, as compared to 1.45 million for the same period last year.” Revenue for Q1 2021 rose YoY by 25% to RMB968 million from RMB774 million.
The cloud services platform was “the biggest driver of the increase.” Introduced in 2020, it now made up “27.1% of total revenue.” Another major contributor “was risk management services, where revenue rose 46.1% year over year to RMB106 million from RMB72 million, reflecting the growth of solutions such as fast claims and credit analytics,” the release noted while adding that business origination services, however, “posted a drop in revenue, to RMB118 million from RMB147 million, due to regulatory change for financial institutions.”
The report further noted that retail loan volume processed by the Company’s systems during the quarter “decreased year over year to RMB17.7 billion from RMB20.6 billion.”
SME loans processed “amounted to RMB9.1 billion, as compared to RMB8.4 billion in the same period last year” and the total fast claims checks carried out during the quarter “amounted to 1.65 million, as compared to 1.45 million in the same period last year.”
For more details on this update, check here.