OneConnect Rises 4% on Strong Q2 Revenue
The stock in OneConnect Financial Technology Co., Ltd. (NYSE: OCFT) gained nearly 4% to $25.61 per American depositary share after reporting strong revenue for the second quarter driven by third-party customers.
The cloud-native tech solutions provider said in a statement today that in the three months through June that its revenues hit 774 million yuan, ($111.58 million) up 48% year-over-year. Revenues from third-party customers rose 29% from the same period in 2019 to 287 million yuan.
Net loss in the quarter widened to 331 million yuan ($47.72 million) compared with 340 million yuan in the same period in the preceding year
Despite the strong financials, Ye Wangchun, the Chairman of the Board and Chief Executive Officer of OneConnect is keeping a humble outlook on the company that has only been operating since December 2015.
"This is no mean feat for a business that is not yet five years old," Wangchun said.
He added, "However, this is not the time to rest on our laurels. This is an industry that is constantly evolving. There is a lot more we need to do to further enhance our solutions and strengthen our all-round support to financial institutions. The potential from digital infrastructure is immense and there is no one better placed than OneConnect to take advantage of it".
OneConnect is even newer to public trading, raising $382.4 million in its IPO with underwriters exercising their over-allotment option. However, the company has been successful so far as its stock is now trading more than double from its IPO issue price of $10 per share.
Operating as an affiliate of Chinese conglomerate Ping An Insurance, OneConnect provides technology applications business services in the financial service sector. Based in Shenzhen, the company has won 23 technology awards in global competitions.
Separately, OneConnect announced today that it was teaming up with Swiss Reinsurance Company Ltd., one of the world's largest reinsurers, to "co-develop a digital end-to-end solution for motor claims handling for the European market".
OneConnect did not provide guidance for its next upcoming quarter or the full year.
Shares are up 156% year-to-date.