OCFT(OCFT)2024-05-21 15:44Financial Data and Key Metrics Changes - The net loss from continuing operations attributable to shareholders improved to RMB60 million from RMB80 million year-on-year, a reduction of 21.2% [8] - Revenue from continuing operations was RMB723 million, a decrease of 19.1% compared to the same period last year [22] - Gross profit margin increased by 0.3 percentage points year-on-year to 37.7% [23][30] Business Line Data and Key Metrics Changes - Revenue from digital banking decreased by 37.6% year-on-year, accounting for 22.3% of total revenue [29] - Revenue from digital insurance decreased by 25.3% year-on-year, making up 18.2% of total revenue [29] - Gamma Platform segment accounted for 59.4% of total revenue, decreasing by 6.2% in Q1 2024 [29] Market Data and Key Metrics Changes - Revenue contribution from overseas customers increased by approximately 14.8% year-on-year, with overseas customer revenue making up 20% of third-party revenue [16] - Business growth in regions such as Hong Kong, Southeast Asia, South Africa, and the Middle East showed strong momentum [16] Company Strategy and Development Direction - The company is focusing on broadening customer engagements and optimizing products and services around digital banking, digital insurance, and the Gamma platform [10][11] - The strategy includes enhancing cooperation with financial regulators and expanding into international markets [11] - The company aims to leverage technology to empower financial institutions and improve operational efficiency [20] Management Comments on Operating Environment and Future Outlook - Management noted that the financial industry is facing challenges but emphasized the importance of digital transformation for future opportunities [38] - The company expects to achieve profitability in the medium term by focusing on improving third-party revenue and enhancing gross margins [32] Other Important Information - The company completed the disposal of its virtual banking business for HKD933 million, which is expected to provide additional working capital [22][36] - The company released its 2023 ESG report, highlighting its commitment to sustainable practices and financial technology empowerment [17][18] Q&A Session Summary Question: What is the reason behind the termination of Ping An Insurance Group on the Gamma Platform? - The change is due to a shift in procurement strategy by the customer, and the company is in negotiations to ensure a smooth transition [35] Question: When can we expect benefits from the recurring premium insurance in the digital insurance business? - The insurance industry is under pressure, but digital transformation remains a priority, which could create new opportunities for the company [38] Question: What is the growth driver for the Gamma Platform? - The Gamma Platform has high customer stickiness, and future growth will leverage technology strengths and explore new opportunities [40] Question: What is the profit margin of the cloud business? - The cloud business has been relatively stable and profitable, contributing about 30% to overall revenue [42]