OneConnect Financial Technology Co. Inc. (NYSE:OCFT) Q3 2023 Earnings Conference Call November 14, 2023 8:00 AM ET Company Participants Shen Chong Feng - Chairman, Chief Executive Officer Luo Yongtao - Chief Financial Officer Rick Chan - Head of Investor Relations Conference Call Participants Lydia Lin - Morgan Stanley Yixuan Li - Guotai Junan Securities Alan Kuang - Citi Rick Chan Thank you Operator. Hello everyone and welcome to our 2023 third quarter earnings conference call. Our financial and operati ...

Financial Performance - Revenue for Q3 2023 decreased by 21.0% year-over-year to RMB 548 million, compared to RMB 694 million in the same period last year[1]. - Revenue for Q3 2023 was RMB 844 million, down 21.1% from RMB 1,069 million in the same period last year[34]. - Total revenue for the nine months ended September 30, 2023, was RMB 2.74 billion, down 14.9% from RMB 3.22 billion in the same period last year[48]. - Revenue from Ping An Group decreased by 20.6% year-over-year to RMB 476 million in Q3 2023[35]. - Revenue from Lufax Holdings dropped 48.5% year-over-year to RMB 61 million in Q3 2023[35]. - Implementation revenue fell by 13.4% year-over-year to RMB 175.2 million, attributed to new customers still recovering from the pandemic, leading to weak demand[46]. - The digital banking segment revenue for Q3 2023 was RMB 201.3 million, down 41.4% year-over-year, with a nine-month total of RMB 695.4 million, down 36.0%[47]. - Revenue from the platform segment decreased by 2.4% year-on-year to RMB 457 million, accounting for 54.1% of total revenue, primarily due to a decline in transaction volume on the open platform[61]. - Revenue from the digital insurance segment decreased by 35.2% year-on-year to RMB 149 million, primarily due to a decline in demand for automotive ecosystem services[61]. - Customer service revenue decreased by 70.9% year-on-year to RMB 27 million, mainly due to a decline in transaction volume and the active elimination of lower-value products in the digital banking segment[62]. - Revenue from risk management services decreased by 26.3% year-on-year to RMB 77 million, primarily due to slower-than-expected recovery in banking activities, leading to reduced transaction volumes for banking loan solutions[62]. - Operating support services revenue decreased by 33.5% year-on-year to RMB 195 million, mainly due to reduced demand affecting the usage of auto insurance and banking clients in the third quarter[62]. - The virtual banking segment revenue increased by 30.4% year-over-year to RMB 36.9 million, with a nine-month total of RMB 103.3 million, up 39.6%[47]. - Revenue from the cloud services platform was RMB 297 million, representing a slight increase of 0.2% year-on-year[62]. Expenses and Losses - Research and development expenses for Q3 2023 were RMB 230,189 thousand, down from RMB 287,221 thousand in Q3 2022, reflecting a reduction of approximately 19.9%[4]. - Total operating expenses reduced to RMB 401 million in Q3 2023 from RMB 548 million in Q3 2022, with the percentage of operating expenses to revenue decreasing from 51.3% to 47.5%[17]. - Operating loss significantly reduced to RMB 96 million in Q3 2023 from RMB 155 million in Q3 2022, improving the operating margin from -14.5% to -11.4%[18]. - The net loss for Q3 2023 was RMB 94,255 thousand, compared to a net loss of RMB 140,709 thousand in Q3 2022, indicating an improvement of about 33.0%[4]. - Net loss attributable to shareholders decreased to RMB 91 million in Q3 2023 from RMB 133 million in Q3 2022, with basic and diluted loss per ADS improving from RMB -3.66 to RMB -2.50[19]. - Cash used in operating activities was RMB 190 million, while cash generated from investing activities was RMB 218 million in Q3 2023[21]. Assets and Liabilities - Total assets as of September 30, 2023, were RMB 8,433,182 thousand, down from RMB 8,882,382 thousand at the end of 2022, representing a decrease of approximately 5.0%[7]. - The total liabilities as of September 30, 2023, were RMB 5,381,685 thousand, down from RMB 5,604,327 thousand at the end of 2022, indicating a reduction of approximately 4.0%[9]. - The company’s equity attributable to owners was RMB 3,073,127 thousand as of September 30, 2023, compared to RMB 3,292,707 thousand at the end of 2022, reflecting a decrease of about 6.7%[7]. - Cash and cash equivalents at the end of Q3 2023 were RMB 1,451,556 thousand, a decrease from RMB 1,907,776 thousand at the end of 2022, reflecting a decline of about 24.0%[12]. Operational Efficiency and Strategy - The company continues to focus on cost control and optimizing business processes, leading to a significant reduction in general and administrative expenses from RMB 167 million to RMB 94 million[17]. - The company is actively adjusting its product mix and implementing strategic measures to optimize cost structure and improve operational efficiency[44]. - The management is focused on identifying and improving underperforming business areas to strengthen revenue structure[44]. - The company plans to continue investing in technological innovation and organizational capabilities to enhance sales and marketing efficiency[59]. - The company aims to accelerate the development of high-value products while focusing on improving gross margins and profitability[59]. - The company is expanding its services to support the digital transformation of the financial services ecosystem, including exporting technology solutions to overseas financial institutions[23]. Upcoming Events - The earnings conference call is scheduled for November 13, 2023, at 7 PM ET, with financial performance and archived meeting records to be published on the company's investor relations website[22]. - The company plans to submit Form 6-K to the SEC on November 14, 2023, regarding Q3 performance[38]. Profitability Metrics - The company reported a gross profit of RMB 295,106 thousand for the nine months ended September 30, 2023, compared to RMB 991,339 thousand for the same period in 2022, a decrease of about 70.3%[4]. - Gross profit decreased from RMB 375 million in Q3 2022 to RMB 295 million in Q3 2023, with a slight decline in gross margin from 35.1% to 35.0%[16]. - Non-IFRS gross margin improved from 38.4% in Q3 2022 to 39.4% in Q3 2023[16]. - Gross margin slightly decreased to 35.0% from 35.1% year-over-year, while non-IFRS gross margin improved by 1.0 percentage point to 39.4%[55].

Financial Performance - For the six months ended June 30, 2023, the total comprehensive loss amounted to RMB 135,905,000, a decrease from RMB 352,758,000 in the same period of 2022, representing a 61.4% improvement[4] - The basic and diluted loss per share attributable to the owners of the company was RMB 0.17, compared to RMB 0.51 in the previous year, indicating a 66.7% reduction in loss per share[4] - The company reported a net loss of RMB 198,523 thousand, compared to a net loss of RMB 590,192 thousand in the same period of 2022, indicating a substantial reduction in losses[114] - Total revenue for the six months ended June 30, 2023, was RMB 1,899,346 thousand, a decrease of 11.8% from RMB 2,152,703 thousand in the same period of 2022[114] - Gross profit for the same period was RMB 696,233 thousand, down from RMB 759,283 thousand, reflecting a gross margin decrease[114] - Operating loss for the six months was RMB 192,939 thousand, significantly improved from a loss of RMB 632,513 thousand in the prior year[114] Assets and Liabilities - Non-current assets totaled RMB 2,227,857,000, down from RMB 2,508,106,000 as of December 31, 2022, reflecting a decrease of 11.1%[7] - Current assets decreased slightly to RMB 6,254,882,000 from RMB 6,374,276,000, a decline of 1.9%[7] - Total assets as of June 30, 2023, were RMB 8,482,739,000, down from RMB 8,882,382,000 at the end of 2022, representing a decrease of 4.5%[9] - The company's equity attributable to owners decreased to RMB 3,167,117,000 from RMB 3,292,707,000, a decline of 3.8%[9] - The total liabilities decreased to RMB 5,333,898,000 from RMB 5,604,327,000, reflecting a reduction of 4.8%[9] Cash Flow and Investments - Cash used in operating activities was RMB 632,914 thousand, a decrease from RMB 793,056 thousand in the prior period, indicating improved cash flow management[18] - Cash inflow from investing activities was RMB 298,119 thousand, significantly lower than RMB 1,507,894 thousand in the previous period, reflecting reduced investment activity[18] - The company recorded a net cash outflow from financing activities of RMB 88,901 thousand, compared to RMB 692,275 thousand in the prior period, showing a decrease in financing needs[18] - As of June 30, 2023, cash and cash equivalents totaled RMB 1,519,513 thousand, up from RMB 1,445,058 thousand at the same time last year[18] Revenue Breakdown - Revenue from technology solutions implementation increased to RMB 443,023 thousand, up 29.3% from RMB 342,611 thousand in the previous year[85] - Revenue from operational support services was RMB 471,585 thousand, down 17.6% from RMB 572,105 thousand in the prior year[85] - Revenue from customer acquisition services decreased significantly to RMB 81,127 thousand, down 63.0% from RMB 219,494 thousand in the same period last year[85] - Revenue from risk management services was RMB 150,317 thousand, a decrease of 24.3% compared to RMB 198,497 thousand in the previous year[85] - Revenue from cloud service platform was RMB 614,620 thousand, down 7.6% from RMB 665,207 thousand in the same period of 2022[85] Operational Challenges - The ongoing COVID-19 pandemic has negatively impacted the group's operations, leading to delays in project implementation and customer interactions, affecting revenue growth[38] - The board highlighted the ongoing risks and uncertainties that may affect future performance, including regulatory changes and market conditions[90] Cost Management - The company has implemented cost-cutting measures, resulting in a significant reduction in total operating expenses across various categories[114] - Research and development expenses decreased to RMB 528,039 thousand from RMB 740,513 thousand, a reduction of 28.7%[114] - The company reported a decrease in general and administrative expenses to RMB 242,118 thousand from RMB 401,921 thousand, a reduction of 39.7%[114] Future Plans and Strategies - The company plans to expand its cloud financial technology solutions and online information services in the Chinese market, leveraging its existing infrastructure[20] - The company aims to enhance its market expansion strategies and product development initiatives in the upcoming quarters to drive future growth[187]

OneConnect Financial Technology Co., Ltd. (NYSE:OCFT) Q2 2023 Earnings Conference Call August 16, 2023 8:00 AM ET Company Participants Rick Chan - Head of Investor Relations Shen Chong Feng - Chairman and Chief Executive Officer Luo Yongtao - Chief Financial Officer Jessie Shen - Head of Strategy, Corporate Planning and Product Management Conference Call Participants Timothy Zhao - Goldman Sachs Lydia Lin - Morgan Stanley Laura Lee - CGS-CIMB Operator Ladies and gentlemen, thank you for standing by, and wel ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 OneConnect Financial Technology Co., Ltd. 壹賬通金融科技有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6638） （紐交所股份代碼：OCFT） 截至2023年6月30日止六個月的 中期業績公告 壹賬通金融科技有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公 司及其附屬公司以及其他綜合實體（統稱「本集團」）截至2023年6月30日止六個月 （「報告期」）的未經審核中期綜合業績，連同2022年同期的比較數字。 於本公告中，「我們」指本公司，倘文義另有所指，指本集團。 財務表現摘要 • 截至2023年6月30日止六個月的第三方客戶收入從2022年同期的人民幣685.0 百萬元減少7.0%至人民幣637.2百萬元。 ...

Revenue Performance - Revenue for Q2 2023 was RMB 973 million, down 14.1% from RMB 1,134 million in the same period last year[9] - Revenue from Ping An Group was RMB 580.8 million, a decrease of 14.9% year-on-year[10] - Revenue from Lufax was RMB 73.1 million, down 31.9% year-on-year[10] - Revenue from third-party clients was RMB 319.5 million, a decrease of 7.1% year-on-year[10] - In Q2 2023, the company's revenue decreased by 14.1% year-on-year to RMB 973 million, down from RMB 1,134 million in the same period last year, primarily due to a decline in transaction-based revenue and support services[17] - Revenue for Q2 2023 decreased by 14.2% to RMB 621 million from RMB 724 million in the same period last year[24] - The revenue from the digital platform segment decreased by 6.6% year-on-year to RMB 513 million, accounting for 52.7% of total revenue, attributed to reduced transaction volumes in cloud services[23] Profitability Metrics - Gross margin remained stable at 36.2%, while non-IFRS gross margin slightly decreased to 39.3% from 40.0% year-on-year[9] - Operating loss narrowed by 71.7% to RMB 79 million, compared to RMB 278 million in the same period last year[9] - Net loss attributable to shareholders decreased by 66.7% to RMB 82 million, improving the net profit margin by 13.2 percentage points to -8.4% from -21.6% year-on-year[9] - The company's gross profit margin increased from 35.3% to 36.7% year-on-year, while the net profit margin improved from -26.1% to -10.0%, reflecting a 16.1 percentage point year-on-year increase[19] - The basic and diluted net loss per American Depositary Share was RMB -2.25, compared to RMB -6.70 in the same period last year[10] - The net loss for the three months ended June 30, 2023, was RMB 85,508 thousand, an improvement from a net loss of RMB 257,884 thousand in the same period of 2022[40] Operating Expenses - Operating expenses for Q2 2023 decreased to RMB 440 million from RMB 678 million, representing 45.3% of revenue, down 14.5 percentage points[26] - R&D expenses for Q2 2023 decreased to RMB 240 million from RMB 378 million, accounting for 24.7% of revenue, down from 33.3%[26] - The company's cash used in operating activities for Q2 2023 was RMB 20 million, while cash used in investing activities was RMB 109 million[29] - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (632,914) thousand, compared to RMB (793,056) thousand for the same period in 2022[49] Business Segments - The implementation revenue grew by 36.4% year-on-year to RMB 233 million, driven by contributions from new customer projects and ongoing delivery of existing contracts[15] - The digital banking segment's revenue decreased by 33.9% year-on-year to RMB 235 million, primarily due to reduced transaction volumes in customer acquisition and risk management services[16] - The digital insurance segment's revenue fell by 6.4% year-on-year to RMB 191 million, mainly due to decreased demand for automotive ecosystem services[16] - The overseas business continued to show strong growth, with revenue from the Hong Kong virtual banking business increasing by 39.7% year-on-year to RMB 34 million[15] Strategic Focus and Outlook - The company aims to maintain and expand its customer base while enhancing customer engagement[4] - Future outlook includes a focus on technological improvements and potential market expansion opportunities[4] - The company is focusing on improving the net profit margin for sustainable long-term growth in 2023[19] - The company is closely monitoring macroeconomic conditions and focusing on strategic execution to seize new opportunities[13] - The company continues to focus on digital transformation solutions for financial institutions, expanding its service offerings to support the financial services ecosystem[32] Financial Position - The total assets as of June 30, 2023, amounted to RMB 8,482,739 thousand, a decrease from RMB 8,882,382 thousand as of December 31, 2022, representing a decline of about 4.5%[42] - The company's cash and cash equivalents were RMB 1,519,513 thousand as of June 30, 2023, down from RMB 1,907,776 thousand at the end of 2022, indicating a decrease of approximately 20.4%[42] - The total equity attributable to the owners of the company was RMB 3,167,117 thousand as of June 30, 2023, down from RMB 3,292,707 thousand at the end of 2022, reflecting a decrease of about 3.8%[42] - Total liabilities decreased from RMB 5,604,327 thousand in the previous year to RMB 5,333,898 thousand[49] - The total current liabilities decreased from RMB 5,446,321 thousand to RMB 5,187,799 thousand[49]

Exhibit 99.1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. OneConnect Financial Technology Co., Ltd. 壹賬通金融科技有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 663 ...

OneConnect Financial Technology Co., Ltd. (NYSE:OCFT) Q1 2023 Earnings Conference Call May 22, 2023 8:00 AM ET Company Participants Rick Chan - Head of Investor Relations Shen Chong Feng - Chairman and Chief Executive Officer Luo Yongtao - Chief Financial Officer Li Jie - Chief Technology Officer Michael Fei - Chief Executive, Ping An OneConnect Bank Conference Call Participants Timothy Zhao - Goldman Sachs Lydia Lin - Morgan Stanley Operator Ladies and gentlemen, thank you for standing by, and welcome to t ...

Revenue Performance - Revenue for Q1 2023 was RMB 926 million, a decrease from RMB 1,019 million in the same period last year[4]. - Total revenue for Q1 2023 decreased by 9.1% to RMB 926 million from RMB 1,019 million in the same period last year, primarily due to a focus on high-value products and a reduction in low-margin customized projects[43]. - Revenue from customer service decreased by 57.3% to RMB 49 million, mainly due to reduced transaction volumes in retail banking customer service modules[43]. - Revenue from Ping An Group was RMB 536.854 million, down 2.2% year-over-year, while revenue from Lufax decreased by 44.7% to RMB 71.357 million[65]. - The digital banking segment's revenue decreased by 33.2% to RMB 258.738 million, primarily due to a reduction in transaction volumes for customer service and risk management services[69]. - Cloud service platform revenue was RMB 292 million, a slight decrease of 1.2% year-on-year, while virtual banking business revenue grew by 51.6% to RMB 32 million[9]. - The virtual banking business recorded a revenue increase of 51.6% to RMB 32.120 million in the first quarter of 2023[69]. Profitability and Loss - Net loss attributable to shareholders narrowed to RMB 109 million, compared to RMB 318 million in the same period last year, with basic and diluted loss per American depositary share improving from RMB -8.58 to RMB -3.00[15]. - The net loss attributable to shareholders decreased by 65.7% to RMB 109 million, compared to RMB 318 million in the same period last year, with a net loss margin improvement of 19.4 percentage points to -11.8% from -31.2%[38]. - For the first quarter of 2023, the company's operating loss decreased by 67.8% to RMB 114 million, compared to RMB 355 million in the same period last year, with an operating loss margin narrowing from 34.8% to 12.4%[64]. - Operating loss narrowed to RMB 114,411 thousand compared to RMB 354,895 thousand in the prior year, reflecting improved operational efficiency[80]. - The company aims to continue narrowing the net loss margin for sustainable growth in 2023[41]. Expenses Management - R&D expenses decreased from RMB 363 million to RMB 288 million, representing 31.1% of revenue, down from 35.6% in the previous year[13]. - General and administrative expenses reduced significantly from RMB 211 million to RMB 107 million, accounting for 11.6% of revenue, down from 20.7%[14]. - Sales and marketing expenses were reduced to RMB 64 million from RMB 109 million year-over-year, with the percentage of sales and marketing expenses to revenue decreasing from 10.7% to 6.9%[73]. - Operating expenses decreased from RMB 700 million to RMB 486 million, with operating expenses as a percentage of revenue dropping by 16.2 percentage points to 52.5%[47]. - The cost of revenue for the first quarter of 2023 decreased by 13.0% to RMB 583 million, primarily due to reduced service fees and the elimination of low-value projects[71]. Financial Position - The total liabilities decreased from RMB 5,604.3 million to RMB 5,288.4 million[22]. - Total assets amounted to RMB 8,406,382 thousand, down from RMB 8,882,382 thousand year-on-year[57]. - Cash and cash equivalents at the end of the period were RMB 1,646,431 thousand, an increase from RMB 1,270,695 thousand year-over-year[87]. - The company reported a net cash used in operating activities of RMB 613,264 thousand, an improvement from RMB 1,118,694 thousand in the previous year[87]. - Cash used in operating activities was RMB 613 million, while cash generated from investing activities was RMB 407 million[50]. Strategic Focus - The company expressed confidence in the potential of the Chinese fintech industry, with total technology spending by financial institutions expected to reach RMB 799.3 billion by 2025[6]. - The company continues to focus on customer deepening strategies and digital transformation amid a challenging macro environment[6]. - The company aims to strengthen product integration and deepen customer relationships in 2023, focusing on high-quality clients to support effective growth for financial institutions[67]. - The company has established long-term partnerships with financial institutions to meet their digital transformation needs and has successfully exported technology solutions to overseas financial institutions[76]. - The company continues to focus on maintaining and expanding its customer base while navigating regulatory challenges in the financial services sector[78].

Exhibit 99.1 OneConnect Announces First Quarter 2023 Unaudited Financial Results Gross Margin Improved by 2.8ppt and Net Loss Ratio to Shareholders Improved by 19.4ppt YoY for First Quarter 2023 SHENZHEN, China — (PR NEWSWIRE) — OneConnect Financial Technology Co., Ltd. ("OneConnect" or the "Company") (NYSE: OCFT), a leading technology-as-a-service provider for financial services industry in China, today announced its unaudited financial results for the first quarter ended March 31, 2023. First Quarter 2023 ...