Author | Li Lanqing Source | Internet Financial Telecommunications
On August 27, Ping An of China (HK.02318) announced its unaudited results for the six months ended June 30, 2020. As an important part of Ping An's technology business sector, Ping An Group also disclosed financial data for the first half of the year of OneConnect (NYSE: OCFT) listed on the New York Stock Exchange.
According to the financial report, OneConnect achieved operating income of 1.355 billion yuan in the first half of the year, an increase of 39.7% year-on-year; a net loss of 778 million yuan, an increase of 2.7% year-on-year; a gross profit of 499 million yuan, an increase of 77.4% year-on-year; the company's gross profit margin was 36.8%, an increase of 7.8 percentage points from 29% in the same period last year.
OneConnect is a business technology cloud service platform for financial institutions, providing solutions for various financial institutions such as banks, insurance, investment, etc. Its operating income mainly includes installation fees, customer acquisition services, risk management services, operation support services, Operation and maintenance support, other aspects.
In the first half of 2020, OneConnect achieved revenue of 452 million yuan in operational support services, a significant increase of 162.1% compared to the same period last year, accounting for 33.36% of total revenue, and it was the first time that OneConnect replaced customer acquisition services and became the new revenue of OneConnect pillar. In the first half of the year, the second largest contribution to revenue was installation fees. In the first half of the year, revenue was 355 million yuan, a year-on-year increase of 61.3%; customer acquisition services, which previously accounted for the largest proportion of total revenue, recorded revenue of 327 million yuan in the first half of the year, a year-on-year decrease of 8.8%.
For the six months ended June 30, the retail loan transaction scale of OneConnect was 33.3 billion yuan, an increase of 3.3% year-on-year, the SME loan transaction scale was 14.1 billion yuan, a year-on-year decrease of 24.7%, and the use of smart flash claims was 244. Million times, an increase of 25.4% year-on-year.
Judging from the data in the second quarter report released by OneConnect, Ping An Group is still its largest customer.
In the first half of 2020, OneConnect’s revenue from Ping An Group was 620 million yuan, an increase of 41.5% year-on-year, accounting for 45.7% of total revenue, while this revenue accounted for 45.1% in the same period in 2019. This year OneConnect's reliance on Ping An Group has increased. At the same time, OneConnect’s revenue from third-party customers increased from 402 million yuan in the same period last year to 557 million yuan, a year-on-year increase of 38.5%. However, the proportion of third-party customer revenue in total revenue decreased from 41.44% in the same period last year to 41.1%. In addition, OneConnect received revenue of 178 million yuan from Lufax in the first half of the year, a year-on-year increase of 37.4%. The proportion of revenue from Lufax in total revenue decreased from 13.4% in the same period last year to 13.18%.
Public information shows that since 2020, several executives of OneConnect have resigned, namely Gao Fan, Chief Risk Control Officer of OneConnect, Dai Ke, Chief Strategy Officer, former CEO Huang Shaoyu, Chief Financial Officer Liu Hui, and Co-CEO Manager Qiu Han. At present, Qiu Han has gone to PayPal to serve as the head of business in China, as the senior vice president and chief executive officer of China.