OneConnect Posts Nearly 50% Revenue Increase, Gross Profit Up 93%

Financials Author: Skye Lan Editor: Luke Sheehan Aug 05, 2020 10:48 PM (GMT+8)

The company continues to surprise the market, with a robust performance since the start of 2020.

Image credit: EqualOcean

The stock price of OneConnect (OCFT:NYSE) opened 3% higher on August 5, with a continuing upward tendency observed.

The rocket is being thrust skywards by the financial result for the second quarter of 2020 that was released during the off-hour trading on August 4. During these three months, the company posted robust growth rates on revenue and gross profit of 48.4% and 93.4%, to the figure of CNY 774 million and CNY 297 million. The net losses narrowed from CNY 340 million to CNY 331 million. 

With the higher demands from AI-related products, the operation support revenue rose by 170.7% to CNY 288 million. The scale effect also brought benefits to the company, with the general and administrative expenses and selling and marketing expenses reduced 11% and 4% respectively. As a percentage of total revenue, both also fell. 

The strong performances since its IPO in 2019 are attracting more investors. Along with the difficult situation between China and the US, Chinese technology companies that either operate or listed in the US are concerned by the market, where the price has doubled since the beginning of 2020. As one of the largest domestic fintech companies, we expect it to do better.