Ping An’s Fintech Unit Posts Widened Loss Even as Revenues Rise
What’s new: OneConnect Financial Technology Co. Ltd., a fintech unit of financial conglomerate Ping An Insurance (Group) Co. of China Ltd. (601318.SH), posted a widened net loss in the third quarter amid bribery allegations in late August.
New York-listed OneConnect lost 270 million ($42 million) yuan in the three months ending on Sept. 30, widening its loss during the same period last year by 11%, its latest earnings report shows.
Revenue for the third quarter rose by 20.8% year-on-year, mainly driven by the company’s cloud services platform, which made up 28.5% of total revenue, OneConnect said in a press release.
The company’s net loss in the first three quarters this year, however, narrowed by 6.6% compared with the same period last year, with revenue going up by 27.5%, according to the earnings report.
The background: OneConnect provides technology products and services for financial institutions to help them gain new users and manage risks. On the last day of August, an anonymous letter circulated online alleging the company offered bribes to government officials and overstated its business performance, sending its shares tumbling. The fintech firm denied the allegations on the same day.
Some investors worry that the firm relies too heavily on Ping An. In the third quarter, the share of Ping An’s contribution to OneConnect’s total revenue was 56%, the same as the same period last year, the earnings report shows.
Quick Takes are condensed versions of China-related stories for fast news you can use.
Contact reporter Zhang Yukun (firstname.lastname@example.org)
Download our app to receive breaking news alerts and read the news on the go.
Get our weekly free Must-Read newsletter.
- MOST POPULAR