Financial technology services provider OneConnect announced its net loss narrowed 58.4% to 363 million yuan in 2023.

The latest: Financial technology services provider OneConnect Financial Technology Co. Ltd. (OCFT.US; 6638.HK) announced Monday that its net loss narrowed 58.4% to 363 million yuan ($50.4 million) in 2023.

Looking up: The company’s operating loss dropped by 62.5% to 368 million yuan for the year, helped by a more than 30% reduction in R&D, selling and administrative expenses.

Take Note: A slower-than-expected recovery for the company’s banking business resulted in fewer customers for its digital banking segment. OneConnect said its “premium-plus customers” fell to 208 last year from 221 in 2022, resulting in a 17.8% overall revenue decrease for the company for the year to 3.67 billion yuan.

Digging Deeper: Founded in 2015, OneConnect is a spinoff of financial giant Ping An Group that provides financial technology products to other financial institutions. The company listed on the New York Stock Exchange in 2019, and followed with a Hong Kong listing three years later, making it the first in its class with such a dual listing. The company has worked hard to diversify its revenue in recent years away from its heavy reliance on the Ping An family, but has lost money since its inception. It has narrowed its losses in recent years by using aggressive cost controls and a focus on larger customers with higher profit margins.

Market Reaction: OneConnect’s Hong Kong-listed shares fell on Tuesday and closed down 3.1% at HK$0.62 by the midday break, near the lower end of their 52-week range.

Translation by A. Au

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