(Yicai) March 19 -- OneConnect Financial Technology greatly reduced its net losses last year from the year before thanks to better cost control and improved efficiency, and the Chinese fintech firm under insurance giant Ping An Insurance (Group) Company of China should break even this year, the chief financial officer told Yicai in a recent exclusive interview.

OneConnect has greatly cut costs and improved its gross margin by reducing labor costs, hiking efficiency as well as lowering expenditure on research, investment and marketing and is expected to achieve its mid-term goal of breaking even, Luo Yongtao said.

The firm’s net losses contracted 58.4 percent in 2023 from a year earlier to CNY363 million (USD50.4 million), according to the Shenzhen-based firm’s unaudited earnings report released yesterday. This is despite revenue plunging 17.8 percent to CNY3.6 billion (USD509.7 million),

Almost all the firm’s main revenue streams logged a year-on-year decline. Revenue from customer acquisition services slumped 65.6 percent to CNY132 million (USD18.3 million), largely due to fewer transactions and the weeding out of low-value products from its digital banking business, it said.

OneConnect will continue to implement cost control measures and boost efficiency this year, Luo said. The ultimate purpose of expense control is to serve the sustainable development of the firm, so that the company can utilize resources more efficiently and develop its key businesses, such as overseas expansion, he added.

OneConnect has been extending its international footprint since it set up a regional headquarters in Singapore in 2018.

Revenue from foreign clients, excluding Ping An OneConnect Bank (Hong Kong) surged over 30 percent last year from the previous year, according to the report. And the proportion of revenue from third parties climbed to 15.7 percent from 9.7 percent in 2022.

OneConnect’s stock price [HKG: 6638] closed down 3.1 percent at HKD0.62 (USD0.08) today.

Editor: Kim Taylor