SHENZHEN, China--(BUSINESS WIRE)--OneConnect Financial Technology Co., Ltd. (“OneConnect” or the “Company”) (NYSE: OCFT), a leading technology-as-a-service platform for financial institutions in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2019.
Fourth Quarter 2019 Financial Highlights
- Revenue increased 51.3% year over year to RMB773 million from RMB511 million.
- Revenue from third-party customers increased 97.7% year over year to RMB341 million from RMB173 million.
- Gross margin expanded to 33.6% from 29.0%; non-IFRS gross margin1 was 41.1%, compared to 41.9% in the prior year.
- Operating loss was RMB581 million, compared to RMB539 million for the same period in the prior year.
- Net loss attributable to shareholders of OneConnect was RMB619 million, versus RMB621 million for the same period in the prior year.
- Net loss per share, basic and diluted, was RMB0.65, versus RMB0.66 for the same period in the prior year.
Full Year 2019 Financial Highlights
- Revenue increased 64.7% year over year to RMB2,328 million from RMB1,413 million.
- Revenue from third-party customers increased 107.3% year over year to RMB1,034 million from RMB499 million.
- Gross margin expanded to 32.9% from 27.5%; non-IFRS gross margin1 was 46.4%, compared to 43.6% in the prior year.
- Operating loss was RMB1,701 million, compared to RMB1,114 million in the prior year.
- Net loss attributable to shareholders of OneConnect was RMB1,661 million, versus RMB1,196 million for the prior year.
- Net loss per share, basic and diluted, was RMB1.77, versus RMB1.29.
In RMB’000, except percentages and per share amounts |
Three Months Ended December 31 |
YoY Change |
|
Full Year Ended December 31 |
YoY Change |
||
2019 |
2018 |
|
|
2019 |
2018 |
||
Revenue |
772,923 |
510,986 |
51.3% |
2,327,846 |
1,413,489 |
64.7% |
|
Revenue from Ping An Group |
317,442 |
226,923 |
39.9% |
|
994,733 |
527,641 |
88.5% |
Revenue from Lufax |
114,439 |
111,520 |
2.6% |
|
299,040 |
387,128 |
-22.8% |
Revenue from third-party customers2 |
341,042 |
172,543 |
97.7% |
|
1,034,072 |
498,720 |
107.3% |
Gross profit |
259,845 |
148,219 |
75.3% |
766,858 |
388,625 |
97.3% |
|
Gross margin |
33.6% |
29.0% |
32.9% |
27.5% |
|||
Non-IFRS gross margin3 |
41.1% |
41.9% |
|
|
46.4% |
43.6% |
|
Operating loss |
-581,367 |
-538,719 |
|
|
-1,701,012 |
-1,114,367 |
|
Operating margin |
-75.2% |
-105.4% |
|
|
-73.1% |
-78.8% |
|
Net loss to shareholders |
-619,375 |
-620,956 |
|
|
-1,660,566 |
-1,195,712 |
|
Net loss per share, basic and diluted |
-0.65 |
-0.66 |
|
|
-1.77 |
-1.29 |
|
1 For more details on this non-IFRS financial measure, please see the section entitled “Use of Unaudited Non-IFRS Financial Measures” and the table captioned “Reconciliations of IFRS and Non-IFRS Results (Unaudited)” set forth at the end of this press release. |
|||||||
2 Third-party customers refer to customers with revenue contribution of less than 5% of total. These customers are a key focus of the Company’s diversification strategy. |
|||||||
3 Some numbers do not add up due to rounding. |
|||||||
CEO and CFO Comments
Mr. Ye Wangchun, Chairman of the Board and Chief Executive Office of OneConnect, commented, “OneConnect’s first set of results as a publicly traded company demonstrates the successful execution of our strategy. We added 252 premium customers in 2019, representing a surge of 114% from the prior year. The expansion in the premium pool marks a significant advancement in the adoption of our technology solutions by financial institutions. Recognition from third-party customers continued to rise, with revenue surging by over 107% year over year in 2019, much faster than the overall revenue growth of 65%. It’s an exceptional achievement and I’m very proud of our team’s efforts.”
Mr. Ye continued, “As we head into 2020, macro challenges remain. The outbreak of coronavirus is causing short-term disruptions, but over the long-term we are extremely optimistic. We believe awareness for online business management and cloud-based solutions will grow in the wake of these temporary hurdles. We have also witnessed a greater demand for digital transformation. OneConnect is well positioned to capture the massive market opportunity with its unique business model, full-stack solutions, cross-vertical coverage and cutting-edge TaaS platform. As China’s financial service industry continues to evolve, we strive to stay ahead of the curve, helping our clients to excel in an increasingly competitive and dynamic market.”
Mr. Jacky Lo, Chief Financial Officer of OneConnect, added, “Strong revenue aside, we also made a big step forward in profitability. Gross margin continued to improve by 5.4 percentage points year over year in 2019, as we further strengthened and diversified the product offerings. OneConnect has a simple mission, to help financial institutions generate business, manage risk and boost efficiency. The ability to provide these innovative technology and business solutions and to quickly respond to changes in the macro and regulatory environment is critical to long-term growth. This calls for continuous investment in R&D, the main reason why we incurred a loss on the bottom-line. But we have been keeping a diligent eye. R&D spending, as a percentage of revenue, went down in 2019. As a percentage of revenue, we achieved a second year of decline in selling and marketing, as well as general and administrative expenses. We are confident that the uptrend in gross margins will continue. Looking forward, we remain focused on stepping up interaction with premium customers while maintaining cost discipline and strengthening the operating leverage.”
Operational Highlights
- Number of premium customers was 473 as of December 31, 2019, as compared to 221 in the prior year.
- Revenue from premium customers increased to RMB1,306 million in 2019 from RMB865 million in 2018.
- Retail loans processed was RMB91.2 billion, as compared with RMB40.0 billion in 2018.
- SME loans processed was RMB39.1 billion, as opposed to RMB9.9 billion in 2018.
- Number of fast claims checks was 5.0 million, as opposed to 1.2 million in 2018.
Revenue Breakdown
In RMB’000, except percentages |
Three Months Ended December 31 |
YoY Change |
|
Full Year Ended December 31 |
YoY Change |
||
2019 |
2018 |
|
|
2019 |
2018 |
||
Implementation revenue |
234,820 |
139,750 |
68.0% |
570,822 |
295,916 |
92.9% |
|
Transaction-based and support revenue |
|||||||
Business origination services |
201,705 |
142,247 |
41.8% |
770,893 |
554,957 |
38.9% |
|
Risk management services |
55,260 |
77,973 |
-29.1% |
327,120 |
205,160 |
59.4% |
|
Operation support services |
271,415 |
128,002 |
112.0% |
582,968 |
309,502 |
88.4% |
|
Post-implementation support services |
587 |
8,847 |
-93.4% |
36,000 |
27,442 |
31.2% |
|
Others |
9,136 |
14,167 |
-35.5% |
40,043 |
20,512 |
95.2% |
|
Total |
538,103 |
371,236 |
44.9% |
1,757,024 |
1,117,573 |
57.2% |
|
Total |
772,923 |
510,986 |
51.3% |
2,327,846 |
1,413,489 |
64.7% |
|
Revenue for the fourth quarter of 2019 increased by 51.3% to RMB773 million from RMB511 million in the prior year period. As a breakdown, implementation revenue grew by 68% year-over-year to RMB 235 million, primarily driven by a strong rollout of new products. Transaction-based and support revenue grew by 44.9% to RMB538 million, led by solid growth in usage and transactions through the Company’s business origination, risk management and operation support products. Retail loan volume processed by the Company’s systems in 2019 reached RMB91.2 billion, as compared to RMB40.0 billion. SME loans processed by OneConnect’s systems rose to RMB39.1 billion from RMB9.9 billion. Total fast claims checks carried out in 2019 increased to 5.0 million from 1.2 million in the prior year. For the full year, transaction-based and support revenue rose by 57.2% to RMB1,757 million from RMB1,118 million.
Number of premium customers rose to 473 as of 31 December, 2019 from 221 a year earlier, reflecting strong uptick in cross-selling and transaction activities. Revenue from premium customers rose 51% to RMB1,306 million in 2019.
OneConnect continues to improve its product offerings to meet the evolving needs of financial institutions and increase stickiness of premium customers. In banking, risk management modules were strengthened and AI virtual assistant was rolled out in 2019. AI virtual assistant was launched in insurance as well, together with agent management tools and intelligent rescue solution. The Company signed an agreement with Finleap, a Berlin-based fintech platform, to offer its auto solutions into the European market. In asset management, the smart contract module was introduced and aims to further enhance the ABS ecosystem by improving online management of contracts and digitalization of text.
OneConnect’s innovation was further promoted to global financial institutions. As of December 31, 2019, the Company had entered 14 markets outside of China. This expansion includes a joint venture with SBI in Japan, which started operations in December and aims to bring cloud-based AI technological services to regional banks throughout Japan. In the Philippines, the Company signed a partnership with UBX, the digital banking subsidiary of Union Bank, to use blockchain technology to address the financial service needs of the country’s SMEs.
Fourth Quarter 2019 Financial Results
Revenue
Revenue for the fourth quarter of 2019 increased by 51.3% to RMB773 million from RMB511 million for the same period in the prior year, primarily driven by growth in revenue from third-party customers.
Cost of Revenue
Cost of revenue for the fourth quarter of 2019 was RMB513 million, compared to RMB363 million for the same period in the prior year, as technology service fee increased.
Gross Profit
Gross profit for the fourth quarter of 2019 increased by 75.3% to RMB260 million from RMB148 million for the same period in the prior year. Gross margin expanded to 33.6% as compared with 29.0% for the same period in the prior year, primarily due to improvement in product mix, with higher revenue contribution from solutions and modules with higher margins such as operation support, and higher product standardization as the Company’s solutions and modules matured. Non-IFRS gross margin was 41.1% in the fourth quarter of 2019, compared to 41.9% for the same period in the period year, as intangible assets injected by Ping An Group at inception had been fully amortized by third quarter and amortization of intangible assets recognized in cost of revenue fell. For a reconciliation of the Company’s non-IFRS gross margin to IFRS gross margin, its most comparable IFRS measure, please refer to “Reconciliation of IFRS and Non-IFRS Results (Unaudited).”
Operating Loss and Expenses
Total operating expenses for the fourth quarter of 2019 were RMB828 million, as compared with RMB660 million for the same period in the prior year. As a percentage of revenue, total operating expenses decreased to 107.1% from 129.2% for the same period in the prior year.
- Research and Development expenses for the fourth quarter of 2019 were RMB315 million, as compared with RMB210 million in the prior year period, primarily reflecting the focus on developing new products and improving the Company’s existing portfolio of offerings. As a percentage of revenue, R&D expenses remained flat at around 41% as compared to the same period in the prior year.
- Selling and Marketing expenses for the fourth quarter of 2019 were RMB164 million, as compared with RMB224 million for the same period in the prior year, reflecting the Company’s strategy to drive long-term growth through sustainable investments in promoting its brand and product awareness, as well as attracting new customers. As a percentage of revenue, selling and marketing expenses decreased to 21.2% from 43.9% for the same period in the prior year.
- General and Administrative expenses for the fourth quarter of 2019 were RMB317 million, as compared with RMB226 million in the prior year period, primarily due to IPO-related expenses, as well as general management and back office employee costs. As a percentage of revenue, general and administrative expenses fell to 41.0% from 44.3% year over year.
Loss from operations for the fourth quarter of 2019 increased to RMB581 million from RMB539 million for the same period in the prior year. Operating margin was -75.2% as compared with -105.4% in the prior year period.
Net Loss
Net loss attributable to OneConnect’s shareholders was RMB619 million, compared to RMB621 million for the same period in the prior year. Net loss attributable to OneConnect’s shareholders per basic and diluted share was RMB0.65, versus RMB0.66 for the same period in the prior year.
For the quarter ended December 31, 2019, the Company’s weighted average number of shares used in calculating per share net loss was 951,601,827. Number of outstanding shares as of December 31, 2019 was 1,097,320,664.
Cash Flows
As of December 31, 2019, the Company had cash and cash equivalents of RMB1,078 million. For the quarter ended December 31, 2019, net cash used in operating activities was RMB344 million. Net cash used in investing activities was RMB1,717 million. Net cash generated from financing activities was RMB2,213 million mainly because of proceeds from the initial public offering.
Full Year 2019 Financial Results
Revenue
Total revenues increased by 64.7% year over year to RMB2,328 million from RMB1,413 million in the prior year, primarily driven by growth in increased revenue from third-party customers.
Cost of Revenue
Cost of revenue was RMB1,561 million, compared to RMB1,025 million in the prior year, as employee benefit expenses and technology service fee increased.
Gross Profit
Gross profit increased by 97.3% to RMB767 million for the full year of 2019 from RMB389 million in the prior year. Gross margin was 32.9% as compared with 27.5% in the prior year, primarily due to improvement in product mix, with higher revenue contribution from solutions and modules with higher margins such as operation support, and higher product standardization as the Company’s solutions and modules matured. Non-IFRS gross margin increased to 46.4% from 43.6% from the same period in prior year, on higher amortization of intangible assets, depreciation of property and equipment and share-based compensation recognized in cost of revenue. For a reconciliation of the Company’s non-IFRS gross margin to IFRS gross margin, its most comparable IFRS measure, please refer to “Reconciliation of IFRS and Non-IFRS Results (Unaudited).”
Operating Loss and Expenses
Total operating expenses for the full year 2019 were RMB2,394 million, as compared with RMB1,423 million in the prior year. As a percentage of revenue, total operating expenses was 102.8%, compared to 100.7% a year earlier.
- Research and Development expenses for the full year of 2019 were RMB956 million, as compared with RMB459 million in the prior year, primarily reflecting the focus on developing new products and improving the Company’s existing portfolio offerings. As a percentage of revenue, R&D expenses increased to 41.1% as compared to 32.5% in the prior year.
- Selling and Marketing expenses for the full year of 2019 were RMB636 million, as compared with RMB442 million in the prior year. As a percentage of revenue, selling and marketing expenses decreased to 27.3% from 31.3% in the prior year, primarily attributable to economies of scale.
- General and Administrative expenses for the full year of 2019 were RMB757 million, as compared with RMB520 million in the prior year, primarily due to IPO-related expenses, as well as general management and back office employee costs. As a percentage of revenue, general and administrative expenses were 32.5% as compared to 36.8% in the prior year, primarily due to economies of scale.
Loss from operations for the full year of 2019 was RMB1,701 million, compared to RMB1,114 million in the prior year. Operating margin was -73.1% as compared with -78.8% in the prior year.
Net Loss
Net loss attributable to OneConnect’s shareholders for the full year of 2019 was RMB1,661 million, versus RMB1,196 million in the prior year. Net loss attributable to OneConnect’s shareholders per basic and diluted share was RMB1.77 from RMB1.29 in the prior year. Number of weighted average of shares for the full year was 939,285,521.
Cash Flows
For the full year of 2019, net cash used in operating activities was RMB1,817 million. Investing activities generated net cash of RMB571 million due to maturity of investment assets. Net cash generated from financing activities was RMB1,755 million mainly because of proceeds from the initial public offering.
2020 Outlook
In December, a novel strain of coronavirus was reported in China and more cases have since been confirmed. OneConnect’s operations have been impacted by delays in project implementation, client interactions and general uncertainty surrounding the duration of the government’s extended business and travel restrictions. The situation is highly fluid and full implications from the coronavirus on the results are uncertain at this point. The Company has been closely monitoring the situation. At the same time, it has also been proactively working with existing and new customers to assist their shift to cloud-based solutions amid the interruptions. Products such as AI sales, AI risk management, AI customer service, smart office and smart claims allow financial institutions to continue their business operations online. OneConnect is well positioned to support financial institutions in all circumstances.
Conference Call Information
Date/Time |
Tuesday, February 18, 2020 at 8:00 p.m., U.S. Eastern Time |
|
|
Wednesday, February 19, 2020 at 9:00 a.m., Beijing Time |
|
Dial-in Number |
U.S.: |
+1-877-791-0217 |
|
Hong Kong: |
+852-58030358 |
|
China Domestic: |
400-043-3098 |
Conference ID |
2572577 |
|
An archived recording and the transcript of the conference call will be available at OneConnect’s investor relations website at ir.ocft.com.
About OneConnect
OneConnect is a leading technology-as-a-service platform for financial institutions in China. The Company’s platform provides cloud-native technology solutions that integrate extensive financial services industry expertise with market-leading technology. The Company’s solutions provide technology applications and technology-enabled business services to financial institutions. Together they enable the Company’s customers’ digital transformations, which help them increase revenue, manage risks, improve efficiency, enhance service quality and reduce costs.
Our technology-as-a-service platform strategically covers multiple verticals in the financial services industry, including banking, insurance and asset management, across the full scope of their businesses – from sales and marketing and risk management to customer services, as well as technology infrastructure such as data management, program development, and cloud services.
For more information, please visit ir.ocft.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s limited operating history in the technology-as-a-service for financial institutions industry; its ability to achieve or sustain profitability; the tightening of laws, regulations or standards in the financial services industry; the Company’s ability to comply with the evolving regulatory requirements in the PRC and other jurisdictions where it operates; its ability to maintain and enlarge the customer base or strengthen customer engagement; its ability to maintain its relationship with Ping An Group, which is its strategic partner, most important customer and largest supplier; its ability to compete effectively to serve China’s financial institutions; the effectiveness of its technologies, its ability to maintain and improve technology infrastructure and security measures; its ability to protect its intellectual property and proprietary rights; risks of defaults by borrowers under the loans for which the Company provided credit enhancement under its legacy credit management business; its ability to maintain or expand relationship with its business partners and the failure of its partners to perform in accordance with expectations; its ability to protect or promote its brand and reputation; its ability to timely implement and deploy its solutions; its ability to obtain additional capital when desired; disruptions in the financial markets and business and economic conditions; the Company’s ability to pursue and achieve optimal results from acquisition or expansion opportunities; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Use of Unaudited Non-IFRS Financial Measures
The unaudited consolidated financial information is prepared in accordance with International Financial Reporting Standards (IFRS). Non-IFRS measures are used in gross profit and gross margin, adjusted to exclude non-cash items, which consist of amortization of intangible assets recognized in cost of revenue, depreciation of property and equipment recognized in cost of revenue, and share-based compensation expenses recognized in cost of revenue. OneConnect’s management regularly review non-IFRS gross profit and non-IFRS gross margin to assess the performance of our business. By excluding non-cash items, these financial metrics allow OneConnect’s management to evaluate the cash conversion of one dollar revenue on gross profit. OneConnect uses these non-IFRS financial to evaluate our ongoing operations and for internal planning and forecasting purposes. OneConnect believes that non-IFRS financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of results of operations, and assists in comparisons with other companies, many of which use similar financial information. OneConnect also believes that presentation of the non-IFRS financial measures provides useful information to its investors regarding its results of operations because it allows investors greater transparency to the information used by OneConnect’s management in its financial and operational decision making so that investors can see through the eyes of the OneConnect’s management regarding important financial metrics that the management uses to run the business as well as allowing investors to better understand OneConnect’s performance. However, non-IFRS financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from similarly-titled non-IFRS measures used by other companies. In light of the foregoing limitations, you should not consider non-IFRS financial measure in isolation from or as an alternative to the financial measure prepared in accordance with IFRS. Whenever OneConnect uses a non-IFRS financial measure, a reconciliation is provided to the most closely applicable financial measure stated in accordance with IFRS. You are encouraged to review the related IFRS financial measures and the reconciliation of these non-IFRS financial measures to their most directly comparable IFRS financial measures. For more information on non-IFRS financial measures, please see the table captioned “Reconciliations of IFRS and non-IFRS results (Unaudited)” set forth at the end of this press release.
ONECONNECT
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended December 31 |
|
Full Year Ended December 31 |
|||
|
2019 |
2018 |
|
2019 |
2018 |
RMB'000 |
RMB'000 |
|
RMB'000 |
RMB'000 |
|
Revenue |
772,923 |
510,986 |
2,327,846 |
1,413,489 |
|
Cost of revenue |
-513,078 |
-362,767 |
-1,560,988 |
-1,024,864 |
|
Gross profit |
259,845 |
148,219 |
766,858 |
388,625 |
|
Research and development expenses |
-314,597 |
-209,576 |
-956,095 |
-459,181 |
|
Selling and marketing expenses |
-163,591 |
-224,196 |
-635,673 |
-441,932 |
|
General and administrative expenses |
-316,578 |
-226,355 |
-756,681 |
-519,795 |
|
Net impairment losses on financial and contract assets |
-33,020 |
-27 |
-45,167 |
-2,224 |
|
Other income, gains or loss-net |
-13,426 |
-26,784 |
-74,254 |
-79,860 |
|
Operating loss |
-581,367 |
-538,719 |
-1,701,012 |
-1,114,367 |
|
Finance income |
37,101 |
40,420 |
128,261 |
129,435 |
|
Finance costs |
-41,699 |
-49,038 |
-174,831 |
-163,442 |
|
Finance costs – net |
-4,598 |
-8,618 |
-46,570 |
-34,007 |
|
Share of losses of associate |
-2,689 |
-2,241 |
-14,854 |
-15,442 |
|
Loss before income tax |
-588,654 |
-549,578 |
-1,762,436 |
-1,163,816 |
|
Income tax benefit/(expense) |
-49,884 |
-61,735 |
74,924 |
-26,469 |
|
Loss for the year |
-638,538 |
-611,313 |
-1,687,512 |
-1,190,285 |
|
Loss attributable to: |
|||||
- Owners of the Company |
-619,375 |
-620,956 |
-1,660,566 |
-1,195,712 |
|
- Non-controlling interests |
-19,163 |
9,643 |
-26,946 |
5,427 |
|
Other comprehensive income, net of tax |
|||||
- Foreign currency translation differences |
-65,883 |
-1,218 |
78,775 |
396,520 |
|
- Changes in the fair value of debt instruments at fair value through other comprehensive income |
40 |
- |
|
40 |
- |
Total comprehensive loss for the year |
-704,381 |
-612,531 |
-1,608,697 |
-793,765 |
|
Total comprehensive loss attributable to: |
|||||
- Owners of the Company |
-685,218 |
-622,174 |
-1,581,751 |
-799,192 |
|
- Non-controlling interests |
-19,163 |
9,643 |
-26,946 |
5,427 |
|
Loss per share attributable to owners of the Company |
|||||
(expressed in RMB) |
|||||
- Basic and diluted |
-0.65 |
-0.66 |
-1.77 |
-1.29 |
|
ONECONNECT
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31 |
|||||
|
|
|
|
2019 |
2018 |
|
|
|
|
RMB'000 |
RMB'000 |
ASSETS |
|||||
Non-current assets |
|||||
Property and equipment |
314,505 |
319,668 |
|||
Intangible assets |
976,948 |
758,075 |
|||
Deferred tax assets |
423,786 |
348,672 |
|||
Investment in associate |
118,829 |
29,452 |
|||
Financial assets at fair value through other comprehensive income |
393,448 |
5,000 |
|||
Contract assets |
40,998 |
63,120 |
|||
Total non-current assets |
2,268,514 |
1,523,987 |
|||
Current assets |
|||||
Loan to related party |
- |
15,027 |
|||
Trade receivables |
710,123 |
270,530 |
|||
Contract assets |
211,276 |
133,661 |
|||
Prepayments and other receivables |
528,277 |
337,214 |
|||
Financial assets at fair value through profit or loss |
1,690,967 |
2,540,925 |
|||
Restricted cash |
3,440,289 |
3,996,238 |
|||
Cash and cash equivalents |
1,077,875 |
565,027 |
|||
Total current assets |
7,658,807 |
7,858,622 |
|||
Total assets |
9,927,321 |
9,382,609 |
|||
EQUITY AND LIABILITIES |
|||||
Equity |
|||||
Share capital |
73 |
66 |
|||
Shares held for share option scheme |
-88,280 |
-88,280 |
|||
Other reserves |
8,461,637 |
6,151,453 |
|||
Accumulated losses |
-4,003,318 |
-2,342,752 |
|||
Equity attributable to equity owners of the Company |
4,370,112 |
3,720,487 |
|||
Non-controlling interests |
150,429 |
110,601 |
|||
|
|
||||
Total equity |
4,520,541 |
3,831,088 |
|||
LIABILITIES |
|||||
Non-current liabilities |
|||||
Trade and other payables |
420,873 |
403,228 |
|||
Contract liabilities |
12,700 |
7,423 |
|||
Deferred tax liabilities |
33,291 |
18,480 |
|||
Total non-current liabilities |
466,864 |
429,131 |
|||
Current liabilities |
|||||
Trade and other payables |
1,075,576 |
1,280,641 |
|||
Payroll and welfare payables |
538,132 |
394,828 |
|||
Contract liabilities |
104,960 |
58,383 |
|||
Short-term borrowings |
3,218,566 |
3,386,100 |
|||
Derivative financial liabilities |
2,682 |
2,438 |
|||
Total current liabilities |
4,939,916 |
5,122,390 |
|||
Total liabilities |
5,406,780 |
5,551,521 |
|||
Total equity and liabilities |
9,927,321 |
9,382,609 |
|||
ONECONNECT
CONSOLIDATED STATEMENTS OF CASHFLOWS
(Unaudited)
Three Months Ended December 31 |
|
|
Full Year Ended December 31 |
|||
|
2019 |
2018 |
|
|
2019 |
2018 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|||
Net cash used in operating activities |
-344,181 |
-352,244 |
-1,817,454 |
-489,237 |
||
Net cash (used in) / generated from investing activities |
-1,716,686 |
-27,796 |
570,839 |
-5,805,478 |
||
Net cash generated from financing activities |
2,213,173 |
20,233 |
1,754,557 |
5,999,403 |
||
Net increase /(decrease) in cash and cash equivalents |
152,306 |
-359,807 |
507,942 |
-295,312 |
||
Cash and cash equivalents at the beginning of the period |
915,156 |
924,458 |
565,027 |
847,767 |
||
Effects of exchange rate changes on cash and cash equivalents |
10,413 |
376 |
4,906 |
12,572 |
||
Cash and cash equivalents at the end of period |
1,077,875 |
565,027 |
1,077,875 |
565,027 |
||
ONECONNECT
RECONCILIATION OF IFRS AND NON-IFRS RESULTS
(Unaudited)
Three Months Ended December 31 |
|
Full Year Ended December 31 |
|||
|
2019 |
2018 |
|
2019 |
2018 |
|
RMB'000 |
RMB'000 |
|
RMB'000 |
RMB'000 |
Gross profit |
259,845 |
148,219 |
766,858 |
388,625 |
|
Gross margin |
33.6% |
29.0% |
|
32.9% |
27.5% |
Non-IFRS adjustment: |
|||||
Amortisation of intangible assets recognized in cost of revenue |
56,407 |
65,698 |
308,551 |
227,006 |
|
Depreciation of property and equipment recognized in cost of revenue |
941 |
227 |
2,362 |
778 |
|
Share-based compensation expenses recognized in cost of revenue |
604 |
- |
2,294 |
- |
|
Non-IFRS Gross profit |
317,797 |
214,144 |
1,080,065 |
616,409 |
|
Non-IFRS Gross margin |
41.1% |
41.9% |
46.4% |
43.6% |
|