casinogurufreespins| Customers 'suspension of cloud services has not yet taken effect, and Financial One Account Connect's loss in the first quarter narrowed by more than 20%

May 21CasinogurufreespinsYi Zhitong Financial Technology Co., Ltd. (6638Casinogurufreespins.HK) announced as of March 31 this yearCasinogurufreespinsFirst-quarter results.

According to the quarterly report, the revenue of Financial one account continued to operate in the first quarter of this year (excluding data from the virtual banking sector, the same below) fell to 7% compared with the same period last year.Casinogurufreespins.23 billion yuan. However, its profit situation improved, with its net profit margin of-7.4%, 0.7 percentage points higher than that of the same period in 2023, and gross profit margin rose 0.3 percentage points year-on-year to 37.7%. The net loss of continuing operations narrowed by 21.2% compared with the same period last year.

However, it is worth noting that shortly before the disclosure of the quarterly report, Financial one account issued an announcement on the evening of May 7, saying that on May 7, 2024, the company was informed by some connected customers that it intended to terminate the use of the group's cloud services due to changes in procurement strategy.

The suspension of cloud services by "connected customers" has not yet taken effect, and the impact on performance has not yet been shown.

In response to this matter, the 21st Century Economic report learned exclusively from Financial one account, "at present, the incident has not yet taken effect and will not affect the company's other business cooperation." As for when it will take effect, we are actively negotiating with relevant customers and evaluating their business planning and further measures, which are still in the negotiation stage. The company closely monitors the development of the matter and will disclose it in a timely manner. "

"the company's medium-term profit target will not change as a result of this." The relevant person in charge of Financial one account also stressed at the first quarter results conference.

"connected customers" specifically refers to "some subsidiaries and associates of Ping an Group". The "cloud services" that have been terminated refer to the cloud services provided to financial institutions through its Gama financial cloud platform since 2020.

In the past two years, cloud service revenue accounted for about 30% of the total revenue of Financial one account. Among them, historical financial data show that more than 99% of cloud services revenue comes from Ping an Group and its subsidiaries and associates.

Thus it can be seen that if some connected customers stop using cloud services, it will have an impact on the financial situation to a certain extent. Financial data show that by the end of 2022 and the end of 2023, the revenue contribution of these related customers to the purchase of financial one account cloud services accounted for about 16.7% and 19.2% of their total revenue, respectively.

According to the quarterly report, revenue from the financial one account cloud service platform increased 8.9% year-on-year to 318 million yuan, while revenue based on transaction and support services was 157 million yuan, down 25% from the same period last year.

In response to this matter, at the results conference in the first quarter, the relevant person in charge of Financial one account also responded, "due to the adjustment of customer procurement strategy, we intend to stop purchasing cloud services, we respect customers' choice." At present, we are actively communicating with the affiliated companies and subordinate companies of Ping an Group to carry out a smooth transition, and we will announce the situation in further detail in the later stage. "

He further stressed that this will not affect the strategic direction of the company, and we will continue to focus on three areas, namely, customers, standardized products and overseas business.

There was no profit in the first quarter, but the net loss narrowed year-on-year and the gross profit margin rose.

Unsurprisingly, Financial one account has not yet made a profit in the first quarter of this year. Revenue from continuing operations in the first quarter of this year fell to 723 million yuan compared with the same period last year, compared with 894 million yuan in the same period last year.

But the net loss of Financial one account narrowed year-on-year and gross profit margin improved. In the first quarter of 2024, the net homing loss of continuing operations narrowed by 21.2% compared with the same period last year. The gross profit margin of continuing business rose 0.3 percentage points year-on-year to 37.7%, which is basically the same as the same period last year. The reporter learned that the continuous rise of gross profit margin shows that the continuous implementation of financial one account has achieved initial results in product standardization.

Financial executives also responded to market concerns about when to make a profit. Luo Yongtao, chief financial officer of Financial one account, said, "while we will continue to strictly implement cost control and improve operational efficiency, we will enhance the competitiveness of our products and strive to develop quality + customers in order to achieve revenue growth, especially third-party income growth." achieve the profit target as soon as possible. "

At present, the three major business sectors include digital banking, digital insurance and Gama platform (digital infrastructure in the areas of intelligent voice services for financial institutions, open platforms, blockchain and financial cloud solutions).

But at present, domestic financial companies generally reduce costs and increase efficiency, and IT investment is expected to be insufficient. As a commercial technology service provider for financial institutions, the performance of financial one account may be affected by this.

For example, in the insurance industry, the management of Financial one account said at the performance meeting, "domestic property insurance companies generally take measures to reduce costs and increase efficiency, which will still affect IT investment in the short term, but insurance companies still need to improve their operations through digital means, which may also become new business opportunities for Financial one account."

In terms of life insurance, the above-mentioned people believe that in the business transformation of domestic life insurance companies, the number of agents continues to decline, and the business situation is still recovering. At present, the life insurance business of Financial one account is mainly focused on the overseas market. Although it is in its infancy, it has made a great breakthrough in the South African market, and the overseas income is also increasing year by year. In the future, Financial one account will strengthen the layout of overseas business and promote the internationalization of life insurance products according to the needs of overseas markets.

Looking for new growth points, the contribution of overseas customer income increased by 14.8% in the first quarter compared with the same period last year.

For a long time, Financial one account is more dependent on the income from the "Ping an Department", mainly Ping an Group and lufax, but the degree of dependence is gradually reduced. According to the quarterly report, the income from Ping an Group and lufax fell to 421 million yuan and 58.256 million yuan compared with the same period last year.

Financial one account also continues to expand third-party customers, in which overseas business has become a bright spot, and it is also the focus of business development that financial one account executives have emphasized many times at the performance conference.

The reporter learned that since 2018, with the layout of Southeast Asia as the starting point, overseas income has maintained steady growth in recent years. In the first quarter, the contribution of overseas customer revenue rose 14.8 per cent from a year earlier, accounting for 20 per cent of third-party revenue (excluding virtual banking data).

Up to now, the Financial One Account business covers 20 countries and regions including South Africa, Singapore, Thailand, Malaysia, Indonesia, United Arab Emirates, the Philippines, and Vietnam, and serves a total of 186 overseas financial institutions, including the top three regional banks in Southeast Asia and two of the top ten insurance companies in the world.

In addition, the latest progress in the sale of Ping An One Account Bank. The management of Financial One Account responded that on April 2 this year, it received a transaction amount of HK$933 million from Lujin Holdings Co., Ltd. to Ping An One Account Bank.

"After the sale of Ping An One Account Bank, the funds of Financial One Account Bank will be more abundant. In the future, Financial One Account will further focus on technology products, deeply cultivate customers and expand overseas business." The person emphasized.