SHENZHEN, GUANGDONG - OneConnect Financial Technology Co., Ltd. (NYSE:OCFT), a leading Chinese financial technology company with a market capitalization of $102.4 million and a Fair Value rating from InvestingPro suggesting slight undervaluation, disclosed the results of its Extraordinary General Meeting (EGM) held on Wednesday, December 18, 2024, in a regulatory filing with the Securities and Exchange Commission (SEC).
The EGM, which took place at the company's principal executive offices in Shenzhen, was convened to vote on certain undisclosed matters pertinent to the company's operations. The meeting comes at a time when the company maintains a strong balance sheet with more cash than debt, though InvestingPro data indicates rapid cash burn and a 26.3% year-over-year revenue decline. The details of the resolutions proposed and the poll results were documented in Exhibit 99.2 of the filing, titled "Announcement — Poll Results of the Extraordinary General Meeting Held on December 18, 2024."
OneConnect, listed under the standard industrial classification for computer programming and data processing, operates under the organization name 06 Technology. While the specific nature of the resolutions was not detailed in the press release statement, the formalities of the EGM were conducted in accordance with the rules and regulations that govern foreign private issuers.
Chongfeng Shen, the Chairman of the Board and Chief Executive Officer of OneConnect, signed the SEC filing, affirming the legitimacy of the report and the proceedings of the EGM. The filing ensures transparency and provides shareholders and the investing public with insights into the corporate governance and decision-making processes of the company.
As a foreign private issuer, OneConnect complies with the SEC's Form 6-K requirements, which necessitate the submission of reports on material events that would be of interest to investors. These filings are integral to maintaining the integrity of the markets and providing stakeholders with verifiable information on corporate affairs.
The outcomes of the EGM are expected to be implemented as per the resolutions passed by the shareholders, reflecting the company's commitment to adhering to corporate governance standards and the interests of its investors. Despite recent challenges, InvestingPro analysis shows a notable 29.7% price return over the past six months, and analysts project a return to profitability this year.
OneConnect's business address and contact information remain unchanged, as stated in the SEC filing. For comprehensive insights into OneConnect's financial health and future prospects, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
This news is based on a press release statement and provides an overview of the EGM's results without delving into the specifics of the resolutions or their potential impact on the company's future operations.
In other recent news, OneConnect reported a significant improvement in its financial performance amidst strategic shifts. The company's third-quarter 2024 earnings call revealed a net loss from continuing operations of RMB30 million, a 41.9% improvement from the previous year. However, a strategic decision to phase out the cloud service business led to a 48.3% decrease in revenue to RMB417 million, while revenue from third-party overseas customers grew by 23.4%.
Gross margin for continuing operations declined to 32.7% from 36% the previous year. Furthermore, OneConnect completed the sale of its virtual banking business to Lufax, with plans to focus on product upgrades and overseas market expansion, particularly in Southeast Asia.
These recent developments also include a reduction in R&D expenses, indicating a more targeted investment strategy. The company is now placing an emphasis on the digital transformation in financial services and expanding its presence in overseas markets. OneConnect aims to reach breakeven in the medium term and is innovating and enhancing product offerings, prioritizing digital banking, digital insurance, and the Gamma platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.