OneConnect Financial Technology Co Ltd (OCFT) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you all for standing by and welcome to OneConnect third quarter, 2024 earnings call.

女士們、先生們，感謝大家的支持，歡迎參加 OneConnect 2024 年第三季財報電話會議。

(Operator Instructions)

（操作員指令）

Now, I would like to hand the conference over to your speaker host today, Mr. Rick Chan, the company's head of investor relations. Please go ahead Mr. Chan.

現在，我想將會議交給今天的演講主持人，公司投資者關係主管 Rick Chan 先生。陳先生，請說。

Thank you operator. Hello, everyone and welcome to our 2024 1st quarter earnings conference call. Our financial and operating results were released earlier today and currently available on our website today. You will hear from our Chairman and CEO, Mr. Shen Chongfeng who will give opening remarks and business highlights.

謝謝接線生。大家好，歡迎參加我們的 2024 年第一季財報電話會議。我們的財務和營運結果已於今天早些時候公佈，目前可在我們的網站上查閱。您將聽取我們董事長兼執行長沈崇峰先生的開幕致詞和業務重點介紹。

After first, our CFO, Mr. Rubo Lin (Michael) will offer a closer look into our financials and then we will have a question and answer question section. Our management team will be available to you and we have our CTO, Mr. Li Jie on the mic to join the call in today's conference.

首先，我們的財務長林如波先生（Michael）將仔細介紹我們的財務狀況，然後我們將進入問答環節。我們的管理團隊將隨時為您服務，我們的技術長李傑先生也將參加今天的電話會議。

Our management team will present in both Mandarin and English. For those in Mandarin, a consecutive translation will be provided in case of any discrepancy between the Mandarin version and the English version. Our statement in the original language shall prevail let me quickly cover the safe harbor statement before we start as we will make forward-looking statements which involve a number of risks and uncertainties that could cause actual results to give a maturity.

我們的管理團隊將使用普通話和英語進行演講。對於使用普通話的用戶，如果普通話版本與英文版本有任何差異，我們將提供連續翻譯。我們的原始聲明應以原文為準，在開始之前，讓我快速介紹安全港聲明，因為我們將做出前瞻性陳述，其中涉及許多可能導致實際結果到期的風險和不確定性。

Please note that we may present both IFRS and non-IFRS financial measures with that. I'm now pleased to turn our call to our Chairman and CEO, Mr. Shen Chongfeng, please.

請注意，我們可能會同時提供 IFRS 和非 IFRS 財務指標。現在我很高興請我們的董事長兼執行長沈崇峰先生發言。

(In Chinese)

(中文)

Hello everyone. I'm Shen Chongfeng. Thank you for taking the time to join OneConnect 2024 3rd quarter earnings release. On behalf of OneConnect, I would like to extend my warm welcome to all investors, analysts and friends from media for with us today. It's a great pleasure to take this opportunity to share with you. OneConnect's earnings result in 2024 Q3.

大家好。我是沈崇鋒。感謝您抽空參加 OneConnect 2024 年第三季財報發表會。我謹代表金融壹帳通，向今天蒞臨本次高峰會的各位投資人、分析師、媒體朋友表示熱烈的歡迎。很高興能藉此機會與大家分享。金融一卡 2024 年第三季獲利結果。

(In Chinese)

(中文)

The People's Bank of China highlighted in its Q3 meeting that it is important to deepen the structural reform of the financial supply side and build an institutional mechanism for finance to effectively support the real economy. The central bank aims to guide the large banks to become the key players to leverage financial services for the real economy. Focus small and medium sized banks on their main responsibilities and businesses support banks to increase capital and jointly maintain the stable development of the financial market.

中國人民銀行三季會議強調，要深化金融供給面結構性改革，建構金融有效支持實體經濟的體制機制。央行旨在引導大型銀行成為金融服務實體經濟的主體。引導中小型銀行聚焦主業與主責主業，支持銀行補充資本，共同維護金融市場穩定發展。

The meeting also encourages the development of five major articles, namely technology innovation in finance, green finance, financial inclusion, pension finance, and digital finance.

會議也鼓勵發展金融科技創新、綠色金融、普惠金融、退休金融、數位金融五大板塊。

On top of that, the meeting also promotes increased support in key areas and the weak link promote faster development of new quality productive forces and meet reasonable consumer financing needs in a more targeted manner. With digitalization becoming ever more relevant, financial institutions and large SOEs are facing many challenges.

此外，會議也提出加強對重點領域和薄弱環節的支持，促進新優質生產力度加速發展，更有針對性地滿足合理消費融資需求。隨著數位化變得越來越重要，金融機構和大型國有企業面臨許多挑戰。

We connect closely monitors policy and market development and continue to leverage the unique advantages of technology plus business to improve its product capabilities in our three major business segments, namely digital banking, digital insurance and gamma platform. So as to empower financial institutions to achieve digital transformation and contribute to the development of new quality productive forces in the financial industry.

我們緊密關注政策與市場發展，持續發揮科技加業務的獨特優勢，完善數位銀行、數位保險、伽瑪平台三大業務板塊的產品能力。從而賦能金融機構實現數位轉型，為金融業培育新優質生產力貢獻力量。

(In Chinese)

(中文)

Since 2024 the company's profitability has further improved and overseas business has continued its strong momentum, net loss from continuing operations. Attributable to shareholders improved to RMB30 million from RMB51 million in the same period last year, a significant year on year decrease of 41.9%.

自2024年以來公司獲利能力進一步提升，海外業務延續強勁勢頭，持續經營淨虧損。股東應占利潤由去年同期的5,100萬元改善至3,000萬元，較去年同期大幅下降41.9%。

In addition, revenue from third party overseas customers increased by 23.4% year on year. In the first nine months of this year, our solid performance is attributable to OneConnect efforts in product portfolio adjustment, deepening customer engagement, continuous extension of domestic and overseas markets, disciplined cost control and improving resource allocation efficiency, which also laid a solid foundation for us to achieve profitability in the medium term.

此外，來自第三方海外客戶的營收年增23.4%。今年前九個月，金融壹帳通的穩健表現得益於公司在產品結構調整、客戶參與度加深、國內外市場持續拓展、成本管控嚴格以及資源配置效率提升等方面的努力，也為我們中期實現盈利奠定了堅實基礎。

(In Chinese)

(中文)

Committed to our business philosophy of value with cooperation and quality development. We achieved significant progress in three core priorities, namely product upgrade, customer expansion, as well as overseas expansion. At this stage, we are accelerating export of Ping An Group technology and upgrades of self developed products and aggregating resources on high value products. On top of that OneConnect has also ramped up efforts in overseas markets, meeting international market demands by continuously improving our products based on the needs and preferences of local markets.

致力於以合作創造價值、以品質求發展的經營理念。我們在產品升級、客戶拓展、海外拓展三大核心重點領域取得重大進展。現階段，我們正加速平安集團技術的輸出和自主產品的升級，並在高價值產品上聚集資源。此外，金融壹帳通也增加了海外市場的佈局，根據當地市場的需求和偏好，不斷改進產品，滿足國際市場的需求。

(In Chinese)

(中文)

At present, we are in the critical period of stage stage two strategy of broadening customer engagement.

目前，我們正處於擴大客戶參與第二階段策略的關鍵時期。

The company will continue to focus on financial institution customers by integrating and optimizing our products and services and improving product capability in three main business segments that is digital banking, digital insurance and gamma platform. So to empower financial institutions to improve quality and efficiency and successfully achieve digital transformation.

本公司將持續聚焦金融機構客戶，整合優化產品與服務，提升數位銀行、數位保險、伽瑪平台三大業務部門的產品能力。賦能金融機構提質增效，順利實現數位轉型。

(In Chinese)

(中文)

In digital retail banking, we continue to empower small operations in retail businesses by enhancing digitalization of customers products and channels. Through our through our strategies in three key aspects that is comprehensive customer group management, accurate product recommendation and intelligent channel operation.

在數位零售銀行方面，我們透過增強客戶產品和通路的數位化，持續為零售業務中的小型企業提供支援。透過全方位客群管理、精準商品推薦、智慧通路營運三大重點面向的策略。

In terms of comprehensive customer group management, OneConnect emphasizes operation by segment by grouping customers with standard indicators. We are able to unify operation perspective.

在綜合客戶分組管理方面，金融壹帳通強調分級經營，透過標準指標將客戶分組。我們能夠統一營運視角。

The company also uses customer portions to gain in depth insight into customer needs and preferences to achieve precision marketing.

該公司也利用顧客份量深入了解顧客需求與偏好，實現精準行銷。

Our customer journey, our customer's journey strategy map can walk in business objectives and ensure that marketing strategies are closely aligned with the customer journey, providing customers with a personalized service experience and helping them find the most suited product.

我們的客戶旅程，我們的客戶旅程策略圖可以融入業務目標，確保行銷策略與客戶旅程緊密結合，為客戶提供個人化的服務體驗，幫助他們找到最適合的產品。

(In Chinese)

(中文)

With regard to the application of AI large models, we have helped improve the quality and efficiency in sales and marketing through the in depth application of a series of auxiliary tools such as AI outbound assistant, AI sales assistant, AI process QA and AI asset distribution.

在AI大模型應用方面，透過AI外呼助理、AI銷售助理、AI流程QA、AI資產分發等一系列輔助工具的深度應用，協助行銷提質增效。

(In Chinese)

(中文)

As for credit lending, digital banking, the company strives for financial inclusion by building intelligent credit management capabilities through the application of the lightweight credit management system and the cons the construction of an out of the box inclusive financial platform, one of the leading internet banks reserve which offer offers mainstream credit services covering retail, small and micro enterprises, corporate credit et cetera has achieved long approval, approval and release by second for standard for their standardized businesses, improving review and approval efficiency by 50%.

信貸方面，公司數位銀行透過應用輕量級信貸管理系統，建構智慧化信貸管理能力，打造普惠金融，打造開箱即用的普惠金融平台，成為國內領先的互聯網銀行之一，提供涵蓋零售、小微、公司信貸等主流信貸服務，對標準化業務實現秒級審批、審批、下發，審批效率提升50%。

We also noted the growing advantages and opportunities in foreign banks as we have become partners with a number of such customers. For example, we continue the long standing operation with D&D as we jointly innovated our corporation model to co develop personalized products and to improve customer experience. SBF another OneConnect important overseas customers have launched our core banking system and our SLP credit system which has greatly improved the efficiency and effectiveness of the customer credit process.

隨著我們與許多外國銀行成為合作夥伴，我們也注意到外國銀行的優勢和機會日益增長。例如，我們持續與D&D進行長期合作，共同創新合作模式，共同開發個人化產品，改善客戶體驗。另一位重要的海外客戶是金融壹帳通，SBF已成功上線了我們的核心銀行系統和SLP信貸系統，大大提高了客戶信貸流程的效率和效果。

In addition, we have maintained a good partnership with PP Bank and further deepen our engagement this year.

此外，我們與PP銀行一直保持著良好的合作關係，並在今年進一步深化了雙方的合作。

On top of that, we have established strategic cooperation with leading foreign banks operating in China at both business and operation level and provided software and technical services in account, opening, signature and small and micro credit projects. Through OneConnects digital credit products, which helps them improve customer experience, innovate credit products and digitalize their system.

此外，我們也與在華營運的領先外資銀行在業務及營運層面建立了策略合作，並在帳戶、開戶、簽約、小微信貸專案等方面提供軟體和技術服務。透過金融壹帳通的數位信貸產品，幫助他們改善客戶體驗、創新信貸產品並實現系統數位化。

(In Chinese)

(中文)

Turning to digital insurance, the company has been working on several end to end fast develop deployment corporation benchmark cases. This includes providing a state-owned P&C insurer with an end to end P&C insurance system to solve the pain, pain points of claim settlements, underwriting and servicing, helping customers reinforce risk control for for claim settlement, enhance over underwriting quality and improve customer experience.

在數位保險方面，該公司一直致力於多個端到端快速開發部署公司基準案例。其中包括為某國有財險公司提供端到端的財險系統，解決理賠、承保、服務的痛點，幫助客戶加強理賠風控，提升承保質量，改善客戶體驗。

(In Chinese)

(中文)

In addition, we are also accelerating transformation to online for our customers in Hong Kong, the epos system platform we provided for a large and medium sized insurance company in Hong Kong has been fully put into use onboarded over 100 brokerage firms and more than 1,000 agents. The platform helps insurance cover a broader range of markets and drives faster business growth.

此外，我們也正在加速推動香港客戶的線上化轉型，為香港某大中型保險公司提供的epos系統平台已全面投入使用，涵蓋100多家券商、1,000多位代理人。該平台有助於保險覆蓋更廣泛的市場並推動更快的業務成長。

After the launch average utilization rate of ecosystem among different channels of the insurance company exceeded 80% which fully demonstrates that the system has been widely used and recognized within the insurance company.

生態系上線後在保險公司各通路間的平均使用率超過了80%，充分說明系統在保險公司內部得到了廣泛的應用和認可。

Policyholders can save up to 50% of the time for them to submit online insurance application which has significantly improved the efficiency of buying insurance online and the customer experience.

投保人在網路上提交投保申請可節省高達50%的時間，大幅提升網路購險的效率和客戶體驗。

This is further proof of our ability to create high quality digital products and truly serve and meet the demands of our customers.

這進一步證明了我們有能力創造高品質的數位產品並真正服務和滿足客戶的需求。

(In Chinese)

(中文)

In gamma platform, OneConnect continues to deepen the financial government and large enterprise customer markets while vigorously expanding overseas potential and remain committed to empowering digital decision-making business and management scenarios with a comprehensive upgrade of gamma vision which is a risk management and verification platform. We have effectively harnessed cutting edge AI technologies such as devi device, fingerprint identification and the micro expression analysis which have significantly enhanced anti fraud capabilities and improved financial security. Utilizing 20 plus AI capabilities, such as visual risk control, digital human and OCR recognition. The company has successfully launched AI interview robust English version to provide efficient and accurate risk and identification services for financial institutions in key scenarios such as remote banking and online lending and effectively contain overseas group based products. At the same time, OneConnect has also launched the eKYC Hong Kong ID of a single angle verification product which has half the use which has half user operation time by optimizing user operation process, improving user experience and enhancing counter rate card risk identification rate by more than 10%. Providing strong support for institutions to quickly identify and respond to fraud.

在Gamma平台方面，金融壹帳通在大力拓展海外潛力的同時，持續深耕金融政府及大企業客戶市場，並致力於賦能數位化決策業務和管理場景，全面升級風險管理及驗證平台Gamma Vision。我們有效運用Devi設備、指紋辨識、微表情分析等尖端人工智慧技術，大幅增強反詐騙能力，提升金融安全性。利用視覺風控、數位人、OCR辨識等20餘項AI能力。本公司已成功上線AI面試健壯英文版，為金融機構在遠距銀行、網路借貸等重點場景提供高效率、精準的風險辨識服務，有效遏制海外集團化產品。同時，金融壹帳通也推出了eKYC香港ID單角度驗證產品，透過優化用戶操作流程，提升用戶體驗，提升櫃檯費率卡風險識別率10%以上，將用戶操作時間減少一半。為機構快速識別和應對詐欺行為提供強而有力的支持。

(In Chinese)

(中文)

The growing overseas market is especially important to OneConnect and the Southeast Asian region has become a strong growth interest in the first three quarters of 2024. Thanks to product upgrade and integration, as well as deepening customer engagement revenue of third party overseas customers increased by 23.4% year on year of which the Southeast Asia business has seen remarkable growth. Momentum in Q3, we successfully launched the SLP product upgrade project which gave customers stronger business development capabilities and improve their operational efficiency.

不斷成長的海外市場對金融壹帳通尤其重要，東南亞地區已成為2024年前三個季度強勁的成長點。受惠於產品升級整合、客戶參與度不斷加深，第三方海外客戶營收年增23.4%，其中東南亞業務成長顯著。第三季度，我們成功啟動了SLP產品升級項目，增強了客戶的業務拓展能力，並提高了客戶的營運效率。

The SLP upgrade has successfully improved the customer experience and received customers strong recognition and high appreciation. Fully demonstrating OneConnect's technical strength and product value.

本次SLP升級成功提升了客戶體驗，並得到了客戶的強烈認可和高度讚賞。充分展現金融一體機的技術實力與產品價值。

At present, our products have been applied in many fields overseas and the mid benchmark cases cover regional banks, digital banks and finance companies, so and so forth. We will also target the 6 Arabian countries in the future and leverage our product capabilities and technical strengths to further expand influence overseas.

目前我們的產品已在海外多個領域應用，得標案涵蓋區域銀行、數位銀行、財務公司等。我們未來也將瞄準阿拉伯6國，運用我們的產品能力和技術優勢，進一步擴大海外影響力。

(In Chinese)

(中文)

In the third quarter of 2024 OneConnect won four awards from third party institutions and renowned media outlets, totaling 318 awards. These honors fully reflect social and industry recognition of our products as well as our technical strengths and interests.

2024年第三季度，金融壹帳通榮獲第三方機構及知名媒體4項大獎，累計得獎318個。這些榮譽充分體現了社會和產業對我司產品的認可以及我司技術實力和利益的認可。

Major awards in this quarter include IDC China Emerging Fintech 50, 4th China FinTech Influential Enterprises Top 50, 4th China ESG Practice Enterprises Top 10, and the 4th NIFD-DCITS Fintech Innovation Case by the National Finance Development Laboratory.

本季主要獎項包括IDC中國新興金融科技50強、第四屆中國金融科技影響力企業50強、第四屆中國ESG實踐企業10強、國家金融發展實驗室第四屆NIFD-DCITS金融科技創新案例等。

(In Chinese)

(中文)

As we go further into 2024 technology and industry revolution continues to evolve new quality productive forces with artificial intelligence at the core is accelerating to lead the high quality development of different industries.

隨著2024年科技與產業革命不斷發展，以人工智慧為核心的高品質新生產力正加速崛起，引領各產業高品質發展。

We firmly firmly believe that the financial industry has the best use cases for artificial intelligence plus and there will be a strategic focus for new quality productive forces.

我們堅信，金融業是人工智慧+的最佳應用產業，也將成為新高品質生產力的策略重點。

OneConnect will continue its focus on product upgrades and quality services driven by technology innovation remain committed to improving efficiency and services, reducing cost and risk and provide core solutions for financial institutions and enterprises to satisfy their diverse demand in business development. Thank you again for your attention and support.

金融一卡通將持續以技術創新驅動產品升級和優質服務，致力於提升效率和服務、降低成本和風險，為金融機構和企業提供核心解決方案，滿足其多樣化業務發展需求。再次感謝您的關注與支持。

(In Chinese)

(中文)

Next, I'll hand it over to Mr. Lin to give you a detailed introduction of OneConnect financials in Q3 2024.

接下來請林先生為大家詳細介紹一下金融壹帳通2024年第三季的財務狀況。

Thank you, Chairman Shen and good evening everyone. My name is Michael Lin, Chief Financial Officer of OneConnect in this session, I'll walk you through some financial results of OneConnect. As previously reported, we completed the disposal of our virtual banking business to new fact for consideration of HKD933 million in cash on April 2nd 2024.

謝謝沈主席，大家晚上好。我是金融壹帳通的財務長麥可‧林，在本次講座中，我將向大家介紹金融壹帳通的一些財務結果。如先前報告的那樣，我們於 2024 年 4 月 2 日以現金 9.33 億港元完成了將虛擬銀行業務出售給新金融的交易。

As a result of this disposal, the historical financial results of the virtual banking business segment have been reflected as a discontinued operations for the third quarter of 2024 and for the comparative period in 2023.

此次處置後，虛擬銀行業務部門的歷史財務表現已反映為 2024 年第三季及 2023 年比較期間的停止經營。

On the other hand, the historical financial results of the remaining business have been reflected in the continued operations.

另一方面，剩餘業務的歷史財務表現已在持續經營中得到體現。

The financial information we soon cover is presented on a continuing operation basis, unless otherwise specifically stated in the third quarter of 2024 we reduced the revenue of RMB417 million decreased by 48.3% compared to the same period last year.

我們即將涵蓋的財務資訊均以持續經營基礎呈現，除非另有特別說明，2024 年第三季我們減少了收入 4.17 億元人民幣，與去年同期相比下降了 48.3%。

Primarily due to our strategic decision to fit our cloud service business revenue generated from third party customers decreased by 12.4% to RMB236 million in the third quarter.

主要是由於我們做出適應雲端服務業務的策略決策，第三季來自第三方客戶的營收下降12.4%至人民幣2.36億元。

But it's worth mentioning that revenue contributed by overseas third party customers in the past three quarters increased by 23.4% year over year.

但值得一提的是，過去三個季度海外第三方客戶貢獻的營收年增了23.4%。

Approved to the effectiveness of our overseas market expansion strategy.

認可我司海外市場拓展策略的有效性。

Gross margin of continuing operation was 32.7% compared to 36.6% in the prior year.

持續經營毛利率為32.7%，上年度為36.6%。

The decrease in gross margin of continued operation was mainly due to reduction in economy of scale caused by decrease in revenue.

持續經營毛利率下降主要因為收入減少導致規模經濟效應減弱。

Non-IFRS, gross margin of continuing operations was 35.6% compared to 40.7% in the prior year.

非國際財務報告準則下，持續經營業務毛利率為35.6%，去年同期為40.7%。

Net loss from continuing operation attribute to the shareholders for RMB30 million compared to RMB51 million during the same period last year.

歸屬於股東的持續經營淨虧損為人民幣3,000萬元，去年同期為人民幣5,100萬元。

Net margin of continuing operations to shareholders was minus 7.1% compared to minus 6.3% during the same period. Last year, net profit for the period to shareholders was RMB110 million compared to minus RMB281 million during the same period last year, net margin for the period for shareholders was 6.6% compared to minus 10.7% during the same period last year.

持續經營業務股東淨利率為負7.1%，去年同期為負6.3%。去年同期歸屬於股東的淨利為人民幣1.10億元，去年同期為負人民幣2.81億元；股東淨利潤率為6.6%，去年同期為負10.7%。

Moving to our expenses and net loss, we can see that we are on track to reach our break even mid term. Top.

看看我們的開支和淨虧損，我們可以看到我們預計在中期實現收支平衡。頂部。

First of all, our R&D expenses from continuing operations were RMB70 million in the third quarter of 2024 compared to RMB250 million. During the same period last year, the decline was mainly due to the company's proactive adjustment of its business structure and its return on investment driven approach to manage R&D projects is the percentage of revenue R&D expenses from continuing operations decreased to 6.7% from 28.5% in the current year.

首先，我們2024年第三季的持續經營研發費用為人民幣7,000萬元，去年同期為人民幣2.5億元。去年同期，下降主要由於公司主動調整業務結構，以投資回報驅動的方式管理研發項目，來自持續經營的研發費用佔收入的比例由本年度的28.5%下降至6.7%。

Our sales and marketing expenses from continue operation were RMB46 million in the third quarter of 2024 compared to RMB66 million during the same period last year.

2024 年第三季度，我們的持續經營銷售和行銷費用為人民幣 4,600 萬元，而去年同期為人民幣 6,600 萬元。

The decline was mainly due to decrease in personnel costs associated with the enhancement of sales efficiency and capabilities as a percentage of revenue sales and marketing expenses from continuing operations slightly increased to 10.9% from 8.2% in the prior year.

下降的主因是隨著銷售效率和能力的提升，人員成本減少，持續經營業務銷售及行銷費用佔收入的比例從上年的8.2%小幅上升至10.9%。

Our DNA benefit from continuing operations with RMB 75 million in the third quarter of 2024 compared to RMB68 million during the same period last year is a percentage of revenue general and administrative expenses from continuing operations increased to 7.9% from 8.4% during the same period last year.

我們的持續經營 DNA 收益在 2024 年第三季為 7,500 萬元，而去年同期為 6,800 萬元，佔持續經營收入的百分比從去年同期的 8.4% 上升至 7.9%。

As a result, our operating loss from continuing operations was RMB60 million in the third quarter of 2024 compared to RMB56 million.

因此，我們 2024 年第三季的持續經營虧損為 6,000 萬元，而上年同期為 5,600 萬元。

During the same period last year, operating margin of continuing operations was minus 12.1% compared to minus 6.9% in the prior year.

去年同期，持續經營業務的營業利益率為負12.1%，而上年度為負6.9%。

Now looking forward to the rest of the year, we continue to see a degree of volati volatility and uncertainty in the market.

展望今年剩餘時間，我們將繼續看到市場出現一定程度的波動和不確定性。

Meanwhile, as previously announced, we started to phase out our call service gradually from July and expect that discontinuation will impact our top line performance of 2024.

同時，正如先前宣布的那樣，我們從 7 月開始逐步淘汰我們的呼叫服務，並預計停止服務將影響我們 2024 年的營收表現。

Despite that our focus remains on improving customer experience by strengthening the competitive competitiveness of our products and services. We will continue to enhance our product offerings, focus on cost cost controls and expand overseas market to stay on path to achieving midterm profitability.

儘管如此，我們的重點仍然是透過增強我們的產品和服務的競爭力來改善客戶體驗。我們將繼續增強我們的產品供應，注重成本控制，並擴大海外市場，以保持實現中期盈利的道路。

That concludes our prepared remarks. Thank you very much.

我們的準備好的演講到此結束。非常感謝。

Thank you, Mr. Lin. Operator, we are open for questions. Please open the line.

謝謝林先生。接線員，我們願意回答您的問題。請打開線路。

Thank you.

謝謝。

(Operator Instructions)

（操作員指令）

Laura Li, CGS International.

勞拉李 (Laura Li)，CGS 國際。

(In Chinese)

(中文)

Yes, we can hear you.

是的，我們能聽到你的聲音。

(In Chinese)

(中文)

Thank you for your question. For the first question will be taken by Mr. Li about the change of revenue maps as well as the profitability.

感謝您的提問。第一個問題由李總是回答，關於收入格局的變化，還有獲利能力。

And the second question, I believe Mr. Shen can share with you some highlights as to our overseas.

第二個問題，我想沈先生可以跟大家分享我們在海外的一些亮點。

(In Chinese)

(中文)

I'll translate that in English as just to repeat my answer to that question.

我會將其翻譯成英文，只是為了重複我對該問題的回答。

So first of all, I want to emphasize that our PR group is still our most important partner and shareholder and the most important third party, non third party customer.

所以首先我想強調的是，我們的公關集團仍然是我們最重要的合作夥伴和股東，也是最重要的第三方、非第三方客戶。

And also, I want to emphasize that OneConnect is the sole fintech exporter within the group will continue to play a very key role in the group's information.

另外，我想強調的是，金融一體帳是集團內唯一的金融科技出口商，將繼續在集團資訊化中發揮關鍵作用。

So if you look at our business, we are eventually phasing out our low growth, low margin products. We continue to pivot towards quality earnings by proactively facing out our low cost, low gross margin, high customization of this.

所以如果你看看我們的業務，你會發現我們最終會逐步淘汰低成長、低利潤的產品。我們繼續透過積極面對低成本、低毛利率和高客製化來轉向優質獲利。

This is this met our local strategy.

這就是符合我們本地策略的。

And if you look at the EGM current released this month, the cap we set on amount of transactions related to the purchase of company products and the services of the group has taken into account different factors including the historical transactions amongst of both parties and changes in our future business requirements.

如果你看一下本月發布的特別股東大會報告，你會發現我們對購買公司產品和服務相關交易金額的上限已經考慮了不同的因素，包括雙方的歷史交易以及我們未來業務需求的變化。

Also, you can see that the proposed limit will increase year over year starting from 2025 that reflects that the recovery of the whole financial industry and the main (inaudible). So we expected that the PR group's overall demand of our products and services will eventually increase from year 2025 onwards.

此外，你可以看到，從 2025 年開始，擬議限額將逐年增加，這反映了整個金融業和主要（聽不清楚）。因此，我們預計從 2025 年起，公關群體對我們的產品和服務的整體需求最終將會增加。

Thank you.

謝謝。

(In Chinese)

(中文)

Next Mr. Shen will address your question about overseas recruitment and staffing.

接下來沈總將解答大家關於海外招募和人員配置的問題。

(In Chinese)

(中文)

We will allocate resources and the recruitment strategies based on the progress and needs of our overseas business and make sure that our development is in line with our strategy.

我們將根據海外業務的進展和需求來配置資源和製定招募策略，確保我們的發展符合我們的策略。

(In Chinese)

(中文)

Our main offerings to overseas includes core banking SLP platform and eKYC.

我們向海外提供的主要服務包括核心銀行SLP平台和eKYC。

(In Chinese)

(中文)

Channel, as well as our Omni channel agent platform for life insurance business, as well as a large models and AI voice assistant.

通路，以及我們針對壽險業務的全通路代理人平台，以及大型模型和AI語音助理。

(In Chinese)

(中文)

Our main target markets include the Middle East South Africa, Hong Kong, China and ASEAN countries.

我們的主要目標市場包括中東、南非、香港、中國和東協國家。

(In Chinese)

(中文)

So far we have equipped ourselves with capabilities in sales, sales and marketing solutions, research and development as well as implementation.

目前，我們已經具備了銷售、銷售和行銷解決方案、研發以及實施方面的能力。

(In Chinese)

(中文)

As our presence continues to expand overseas. We intend to further increase our team in solutions R&D as well as delivery.

隨著我們的海外業務不斷擴大。我們打算進一步擴大我們的解決方案研發和交付團隊。

(In Chinese)

(中文)

Our recruiting strategy includes recruiting from local markets, develop ecosystem partners in overseas as well as deploy our team at home to overseas offset.

我們的招募策略包括從本地市場招募、在海外發展生態系統合作夥伴以及將我們的團隊部署到海外。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員指令）

We have no further questions currently. So I would like to hand it back to Rick for any closing remarks.

目前我們沒有其他問題。因此我想將發言權交還給 Rick，請他做最後發言。

Thank you, operator. Thanks everyone for joining the call today. If you have any questions, feel free to contact us and and our RRT, I appreciate your interest and time in following us and look forward to speaking with you again. Thank you very much. Have a good day.

謝謝您，接線生。感謝大家今天參加電話會議。如果您有任何疑問，請隨時聯繫我們和我們的 RRT，我感謝您關注我們的興趣和時間，並期待再次與您交談。非常感謝。祝你有美好的一天。

Thank you for joining. I can confirm that does include today's call, please. Enjoy the rest of your day and you may now disconnect.

感謝您的加入。我可以確認這確實包括今天的電話。享受今天剩下的時間，現在你可以斷開連接了。