OneConnect Financial Technology (6638) Q4 2024 earnings summary

Executive summary

• Revenue from continuing operations fell 52.9% year-over-year in Q4 2024 and 36.2% for the full year, mainly due to the strategic phasing out of cloud services and lower demand for implementation and transaction-based services.

• Net loss from continuing operations attributable to shareholders increased to RMB569 million in Q4 and RMB669 million for the year, driven by goodwill impairment and reversal of deferred tax assets.

• Gross margin declined to 34.2% in Q4 and 35.8% for the year, reflecting reduced economies of scale.

Financial highlights

• Q4 2024 revenue: RMB415 million (down from RMB882 million in Q4 2023); full year: RMB2,248 million (down from RMB3,522 million in 2023).

• Q4 gross profit: RMB142 million; full year: RMB804 million.

• Q4 operating loss: RMB148 million; full year: RMB304 million.

• Q4 net loss per ADS: RMB-15.67; full year: RMB-18.42.

• Non-IFRS gross margin for Q4: 36.5%; full year: 38.2%.

Outlook and guidance

• Management highlights ongoing risks related to regulatory changes, customer concentration, and the ability to maintain relationships with key partners.

• The company is focusing on business model adjustments and cost control, with continued emphasis on digital transformation services.