On November 14th, Financial One Account (HK 06638, stock price of HKD 0.78, market value of HKD 910 million) announced its performance for the nine month period ending September 30, 2023. During the reporting period, Financial One Account achieved a revenue of 2.74 billion yuan (RMB, the same below) and a gross profit of 990 million yuan; The net profit margin attributable to the parent company is -10.3%, an optimization of 11.3 percentage points compared to the same period in 2022, with a gross profit margin of 36.1%, an increase of 0.9 percentage points year-on-year.
At the same time, Financial One Account Bank announced that it will sell 100% of its wholly-owned subsidiary, Ping An One Account Bank (Hong Kong) Limited (hereinafter referred to as "Ping An One Account Bank"), to Lujin Holdings Limited for a consideration of HKD 933 million.
Ping An One Account Bank's revenue increased by 30.4% year-on-year in the third quarter
The performance report shows that Financial One Account has achieved good results in "strengthening customer expansion, focusing on product upgrades, and adjusting business structure". At the same time, it has concentrated resources to create products and solutions that meet the digital transformation needs of financial institutions.
In the banking sector, Ping An One Account Bank's revenue increased by 30.4% compared to the third quarter of last year to RMB 37 million; In the digital insurance sector, focusing on the pain points of small and medium-sized car insurance companies in risk assessment, cost management, and other aspects, we plan to launch an end-to-end solution covering "claims+underwriting+services" by the end of the year, and plan to officially launch the market in 2024; In the Gama platform sector, Financial One Account has fully applied AI capabilities in various business processes, further improving risk control capabilities and sales conversion efficiency.
Shen Chongfeng, Chairman and CEO of Financial One Account, stated that the company has continued the good development momentum of the first half of the year and still achieved good performance in the third quarter. In the first nine months of this year, the company experienced a year-on-year loss reduction of 410 million yuan, with a reduction of 60%. The quality of operations has steadily improved, and the company is steadily moving towards the mid-term goal of achieving a breakeven balance.
Meanwhile, the performance report mentioned that the revenue for the third quarter of 2023 decreased by 21.1% from 1.069 billion yuan in the same period of the previous year to 844 million yuan, mainly due to a decrease in transaction revenue and support service revenue. The implementation revenue decreased by 13.4% year-on-year to RMB 175 million, mainly due to the sluggish demand of new customers still recovering from the impact of the epidemic.
For transaction revenue and support service revenue, the revenue from customer acquisition services in the third quarter decreased by 70.9% year-on-year to 27 million yuan, mainly due to a decrease in transaction volume and the elimination of lower value products in the digital banking sector; The revenue from risk management services decreased by 26.3% year-on-year to 77 million yuan, mainly due to the slower than expected recovery of bank activities, leading to a decrease in transaction volume of bank loan solutions; The revenue from operational support services decreased by 33.5% year-on-year to 195 million yuan, mainly due to a decrease in demand in the third quarter, resulting in a decrease in the usage of car insurance and banking customers. In addition, the revenue of the cloud service platform was 297 million yuan, an increase of 0.2% year-on-year.
Will sell 100% shares of Ping An One Account Bank to Lujin Stock Exchange
The reporter noticed that on November 14th, Financial One Account will sell 100% of Ping An One Account Bank to Lujin for a consideration of HKD 933 million.
According to the announcement, Ping An One Account Bank is the first virtual bank in Hong Kong to focus on providing flexible and efficient banking services for small and medium-sized enterprises. Its total revenue in the first half of 2023 was 66 million yuan, a year-on-year increase of 45.2%.
At present, the capital adequacy ratio of Ping An One Account Bank is 100%, significantly higher than regulatory requirements. All of its loans are small and medium-sized enterprise loans in Hong Kong, and a large portion of the outstanding balance is supported by the Hong Kong government's small and medium-sized enterprise financing guarantee program.
Financial One Account Express stated that it intends to use the obtained funds for general working capital utilization, including but not limited to improving the company's main business operations, optimizing the allocation of resources for technology products and services, etc.
Shen Chongfeng stated that the sale of Ping An One Account Bank by Financial One Account is in line with the company's overall strategic layout and shareholder interests. The company will continue to focus on improving its technology positioning and technology driven product services in the next stage, and is committed to steadily promoting deep cooperation with global financial institutions through digital solutions of "two improvements and two reductions".