OCFT(OCFT)2024-08-16 15:05Financial Data and Key Metrics Changes - The company reported a revenue from continuing operations of RMB1.416 billion in the first half of 2024, a decrease of 22.8% compared to the same period last year [21] - Net loss from continuing operations attributable to shareholders improved to RMB70 million in the first half, a significant year-on-year decrease of about 38% [8][23] - Gross profit margin remained stable at 37.1%, with an adjusted gross profit margin of 39.4% [8][23] - The company achieved a net profit attributable to shareholders of RMB243 million in Q2 2024, primarily due to a one-time gain from the sale of its virtual banking business [32][33] Business Line Data and Key Metrics Changes - Revenue from third-party customers decreased by 16.9% to RMB418 million in the first half, while revenue from overseas customers increased by 14.8% year-on-year [22] - Revenue from the Gamma Platform segment accounted for 67.2% of total revenue, decreasing by 9.4% year-over-year [28] - Digital banking segment revenue, which accounted for 14.5% of total revenue, reduced by 57.4% year-over-year [29] - Digital insurance segment revenue, accounting for 18.4% of total revenue, decreased by 33.3% year-over-year [29] Market Data and Key Metrics Changes - Revenue contribution from overseas customers increased to 21.2% of total third-party revenue [17] - The company reported strong growth momentum in overseas markets, particularly in Hong Kong, Southeast Asia, and South Africa [41] Company Strategy and Development Direction - The company is focused on enhancing product capabilities in digital banking, digital insurance, and the Gamma platform to empower financial institutions [10] - OneConnect aims to expand its presence in international markets, including Southeast Asia, South Africa, and the Middle East, while continuing to deepen cooperation with existing customers [11][41] - The company is committed to optimizing high-quality offerings and investing in R&D to meet the demands of financial institutions [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unpredictability in the market but remains focused on improving third-party revenue and enhancing product competitiveness [33] - The company is optimistic about achieving double-digit growth in overseas revenue and plans to expand its banking and insurance solutions in targeted markets [41] Other Important Information - The company won nine awards in the first half of 2024, bringing the total number of honors to 314, reflecting industry recognition for its products and technical strengths [18] Q&A Session Summary Question: Why does the company have a dividend payout plan despite achieving profit? - Management stated that achieving positive earnings is a significant milestone, and they will consider various factors, including overseas development needs and financial position, when deciding on dividend payouts [39][40] Question: What is the strategy for overseas business and revenue growth targets? - Management highlighted that overseas revenue increased by 14.8% and expressed confidence in achieving double-digit growth in overseas revenue, focusing on markets like Southeast Asia and Hong Kong [41]