Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39147 |
Entity Registrant Name | OneConnect Financial Technology Co., Ltd. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 21/24F, Ping An Finance Center |
Entity Address, Address Line Two | No. 5033 Yitian RoadFutian District |
Entity Address, City or Town | Shenzhen, Guangdong |
Entity Address, Postal Zip Code | 518000 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 1,169,980,653 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001780531 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Shenzhen, the People’s Republic of China |
American depositary shares, each ADS represents thirty ordinary shares, par value USS0.00001 per share | |
Document and Entity Information | |
Title of 12(b) Security | American depositary shares |
Trading Symbol | OCFT |
Security Exchange Name | NYSE |
Ordinary shares, par value USS0.00001 per share | |
Document and Entity Information | |
Title of 12(b) Security | Ordinary shares |
Trading Symbol | 6638 |
Business Contact | |
Document and Entity Information | |
Contact Personnel Name | Mr. Yongtao Luo |
City Area Code | 86-21-2066- |
Local Phone Number | 0625 |
Contact Personnel Email Address | OCFT_IR@ocft.com |
Entity Address, Address Line One | 21/24F, Ping An Finance Center |
Entity Address, Address Line Two | No. 5033 Yitian RoadFutian District |
Entity Address, City or Town | Shenzhen. Guangdong |
Entity Address, Country | CN |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement | |||
Revenue | ¥ 3,667,508 | ¥ 4,464,002 | ¥ 4,132,357 |
Cost of revenue | (2,318,103) | (2,828,986) | (2,695,706) |
Gross profit | 1,349,405 | 1,635,016 | 1,436,651 |
Research and development expenses | (955,201) | (1,417,691) | (1,353,018) |
Selling and marketing expenses | (275,351) | (411,356) | (588,380) |
General and administrative expenses | (504,970) | (824,711) | (841,685) |
Net impairment losses on financial and contract assets | (53,950) | (33,639) | (72,229) |
Other income, gains or lossnet | 71,855 | 70,818 | 13,921 |
Operating loss | (368,212) | (981,563) | (1,404,740) |
Finance income | 29,580 | 14,709 | 28,823 |
Finance costs | (20,532) | (37,173) | (76,637) |
Finance (costs)/income - net | 9,048 | (22,464) | (47,814) |
Share of gain of associate and joint venture - net | 4,607 | 24,852 | 9,946 |
Impairment charges on associate | (7,157) | (10,998) | |
Loss before income tax | (361,714) | (990,173) | (1,442,608) |
Income tax benefit/(expense) | (9,762) | 62,147 | 112,095 |
Loss for the year | (371,476) | (928,026) | (1,330,513) |
Loss attributable to: | |||
- Owners of the Company | (362,715) | (872,274) | (1,281,699) |
- Noncontrolling interests | (8,761) | (55,752) | (48,814) |
Loss for the year | (371,476) | (928,026) | (1,330,513) |
Items that may be subsequently reclassified to profit or loss | |||
- Foreign currency translation differences | 3,880 | 69,454 | (152,542) |
- Changes in the fair value of debt instruments measured at fair value through other comprehensive income | 500 | 5,324 | (16) |
Items that will not be subsequently reclassified to profit or loss | |||
- Foreign currency translation differences | 22,336 | 356,691 | |
- Changes in the fair value of equity investments measured at fair value through other comprehensive income | (1,796) | ||
Other comprehensive income, net of tax | 26,716 | 431,469 | (154,354) |
Total comprehensive loss for the year | (344,760) | (496,557) | (1,484,867) |
Total comprehensive loss attributable to: | |||
- Owners of the Company | (335,999) | (440,805) | (1,436,053) |
- Noncontrolling interests | (8,761) | (55,752) | (48,814) |
Total comprehensive loss for the year | ¥ (344,760) | ¥ (496,557) | ¥ (1,484,867) |
Loss per share attributable to owners of the Company (expressed in RMB per share) | |||
Basic | ¥ (0.33) | ¥ (0.80) | ¥ (1.16) |
Diluted | (0.33) | (0.80) | (1.16) |
Loss per ADS attributable to owners of the Company (expressed in RMB per share) | |||
Basic | (9.99) | (23.90) | (34.69) |
Diluted | ¥ (9.99) | ¥ (23.90) | ¥ (34.69) |
Technology Solutions | |||
Statement | |||
Revenue | ¥ 3,521,591 | ¥ 4,357,462 | ¥ 4,098,037 |
Virtual Bank Business | |||
Statement | |||
Revenue | ¥ 145,917 | ¥ 106,540 | ¥ 34,320 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Noncurrent assets | ||
Property and equipment | ¥ 85,076 | ¥ 151,401 |
Intangible assets | 471,371 | 570,436 |
Deferred tax assets | 768,276 | 765,959 |
Investments accounted for using the equity method | 199,200 | |
Financial assets measured at fair value through other comprehensive income | 1,372,685 | 821,110 |
Restricted cash and time deposits over three months | 5,319 | |
Prepayments and other receivables | 6,663 | |
Total noncurrent assets | 2,709,390 | 2,508,106 |
Current assets | ||
Trade receivables | 710,669 | 940,989 |
Contract assets | 95,825 | 122,628 |
Prepayments and other receivables | 905,691 | 1,078,604 |
Financial assets measured at amortized cost from virtual bank | 3,081 | 44 |
Financial assets measured at fair value through other comprehensive income | 853,453 | 1,233,431 |
Financial assets at fair value through profit or loss | 925,204 | 690,627 |
Derivative financial assets | 38,008 | 56,363 |
Restricted cash and time deposits over three months | 447,564 | 343,814 |
Cash and cash equivalents | 1,379,473 | 1,907,776 |
Total current assets | 5,358,968 | 6,374,276 |
Total assets | 8,068,358 | 8,882,382 |
Equity | ||
Share capital | 78 | 78 |
Shares held for share incentive scheme | (149,544) | (149,544) |
Other reserves | 10,989,851 | 10,953,072 |
Accumulated losses | (7,873,614) | (7,510,899) |
Equity attributable to equity owners of the Company | 2,966,771 | 3,292,707 |
Noncontrolling interests | (18,979) | (14,652) |
Total equity | 2,947,792 | 3,278,055 |
Noncurrent liabilities | ||
Trade and other payables | 28,283 | 132,833 |
Contract liabilities | 17,126 | 19,977 |
Deferred tax liabilities | 2,079 | 5,196 |
Total noncurrent liabilities | 47,488 | 158,006 |
Current liabilities | ||
Trade and other payables | 1,981,288 | 2,531,273 |
Payroll and welfare payables | 385,908 | 431,258 |
Contract liabilities | 138,563 | 166,650 |
Shortterm borrowings | 251,732 | 289,062 |
Customer deposits | 2,261,214 | 1,929,183 |
Other financial liabilities from virtual bank | 54,373 | 89,327 |
Derivative financial liabilities | 9,568 | |
Total current liabilities | 5,073,078 | 5,446,321 |
Total liabilities | 5,120,566 | 5,604,327 |
Total equity and liabilities | ¥ 8,068,358 | ¥ 8,882,382 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CNY (¥) | Share capitals | Shares held for share option scheme | Other reserves [Member] | Accumulated losses | Non controlling interest | Total | Total |
Ending balance, equity at Dec. 31, 2020 | ¥ 78,000 | ¥ (87,714,000) | ¥ 10,639,931,000 | ¥ (5,356,926,000) | ¥ 89,914,000 | ¥ 5,195,369,000 | ¥ 5,285,283,000 |
Loss for the year | (1,281,699,000) | (48,814,000) | (1,281,699,000) | (1,330,513,000) | |||
Foreign currency translation differences | (152,542,000) | (152,542,000) | (152,542,000) | ||||
Fair value changes on financial assets measured at fair value through other comprehensive income | (1,812,000) | (1,812,000) | (1,812,000) | ||||
Total comprehensive loss for the year | (154,354,000) | (1,281,699,000) | (48,814,000) | (1,436,053,000) | (1,484,867,000) | ||
Transactions with equity holders: | |||||||
Value of employee services and business cooperation arrangements (Note 27) | 25,409,000 | 25,409,000 | 25,409,000 | ||||
Vesting of shares under Restricted Share Unit Scheme | 700,000 | (700,000) | (700,000) | ||||
Exercise of shares under Share Option Scheme | 6,912,000 | 2,345,000 | 9,257,000 | 9,257,000 | |||
Total transactions with equity holders at their capacity as equity holders for the year | 7,612,000 | 27,054,000 | 34,666,000 | 34,666,000 | |||
Ending balance, equity at Dec. 31, 2021 | 78,000 | (80,102,000) | 10,512,631,000 | (6,638,625,000) | 41,100,000 | 3,793,982,000 | 3,835,082,000 |
Loss for the year | (872,274,000) | (55,752,000) | (872,274,000) | (928,026,000) | |||
Foreign currency translation differences | 426,145,000 | 426,145,000 | 426,145,000 | ||||
Fair value changes on financial assets measured at fair value through other comprehensive income | 5,324,000 | 5,324,000 | 5,324,000 | ||||
Total comprehensive loss for the year | 431,469,000 | (872,274,000) | (55,752,000) | (440,805,000) | (496,557,000) | ||
Transactions with equity holders: | |||||||
Value of employee services and business cooperation arrangements (Note 27) | 13,361,000 | 13,361,000 | 13,361,000 | ||||
Vesting of shares under Restricted Share Unit Scheme | 4,720,000 | (4,720,000) | (4,720,000) | ||||
Exercise of shares under Share Option Scheme | 830,000 | 331,000 | 1,161,000 | 1,161,000 | |||
Repurchase of shares | (74,992,000) | (74,992,000) | (74,992,000) | ||||
Total transactions with equity holders at their capacity as equity holders for the year | (69,442,000) | 8,972,000 | (60,470,000) | (60,470,000) | |||
Ending balance, equity at Dec. 31, 2022 | 78,000 | (149,544,000) | 10,953,072,000 | (7,510,899,000) | (14,652,000) | 3,292,707,000 | 3,278,055,000 |
Loss for the year | (362,715,000) | (8,761,000) | (362,715,000) | (371,476,000) | |||
Foreign currency translation differences | 26,216,000 | 26,216,000 | 26,216,000 | ||||
Fair value changes on financial assets measured at fair value through other comprehensive income | 500,000 | 500,000 | 500,000 | ||||
Total comprehensive loss for the year | 26,716,000 | (362,715,000) | (8,761,000) | (335,999,000) | (344,760,000) | ||
Transactions with equity holders: | |||||||
Value of employee services and business cooperation arrangements (Note 27) | 14,497,000 | 14,497,000 | 14,497,000 | ||||
Transactions with non-controlling interests | (4,434,000) | 4,434,000 | (4,434,000) | (4,434,000) | |||
Total transactions with equity holders at their capacity as equity holders for the year | 10,063,000 | 4,434,000 | 10,063,000 | 14,497,000 | |||
Ending balance, equity at Dec. 31, 2023 | ¥ 78,000 | ¥ (149,544,000) | ¥ 10,989,851,000 | ¥ (7,873,614,000) | ¥ (18,979,000) | ¥ 2,966,771,000 | ¥ 2,947,792,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Cash used in operations | ¥ (637,746) | ¥ (720,786) | ¥ (383,704) |
Income tax paid | (10,715) | (25,198) | (20,630) |
Net cash used in operating activities | (648,461) | (745,984) | (404,334) |
Cash flows from investing activities | |||
Payment for acquisition of subsidiaries, net of cash acquired | 0 | 0 | (11,060) |
Payments for property and equipment | (5,981) | (22,066) | (45,553) |
Payments for intangible assets | (31,488) | (45,877) | (82,463) |
Payment for loans to related parties | (3,515) | ||
Payments for financial assets measured at fair value through other comprehensive income | (1,867,657) | (614,772) | (16,661) |
Payments for Investment in Jointly controlled entities | (2,550) | ||
Payments for financial assets at fair value through profit or loss | (914,500) | (2,706,721) | (7,577,741) |
(Payments)/Proceeds for settlement of derivatives | 40,342 | 16,491 | (138,634) |
Release of restricted cash and time deposits over three months, net | 207,896 | 922,818 | 1,206,607 |
Proceeds from sales of property and equipment | 699 | 9,467 | 1,019 |
Receipts of loans to related parties | 1,600 | 1,900 | |
Proceeds from sales of financial assets measured at fair value through other comprehensive income | 1,991,143 | 193,495 | 16,833 |
Proceeds from disposal of investment in associate | 199,200 | ||
Proceeds from sales of financial assets at fair value through profit or loss | 686,626 | 4,092,407 | 7,019,968 |
Interest received on financial assets at fair value through profit or loss | 13,304 | 26,027 | 19,635 |
Net cash generated from investing activities | 318,634 | 1,873,169 | 388,435 |
Cash flows from financing activities | |||
Proceeds from shortterm borrowings | 235,000 | 313,000 | 912,900 |
Proceeds from exercise of shares under share incentive scheme | 1,161 | 9,257 | |
Payments for lease liabilities | (60,922) | (76,734) | (96,139) |
Repayments of shortterm borrowings | (273,000) | (836,429) | (2,376,945) |
Interest paid | (11,403) | (20,072) | (60,854) |
Transactions with non-controlling interests | (15,000) | ||
Payments for shares held for share incentive scheme | (88,280) | ||
Payments for shares repurchase | (74,992) | ||
Net cash used in financing activities | (213,605) | (694,066) | (1,611,781) |
Net (decrease)/increase in cash and cash equivalents | (543,432) | 433,119 | (1,627,680) |
Cash and cash equivalents at the beginning of the year | 1,907,776 | 1,399,370 | 3,055,194 |
Effects of exchange rate changes on cash and cash equivalents | 15,129 | 75,287 | (28,144) |
Cash and cash equivalents at the end of year | ¥ 1,379,473 | ¥ 1,907,776 | ¥ 1,399,370 |
General information and basis o
General information and basis of presentation | 12 Months Ended |
Dec. 31, 2023 | |
General information and basis of presentation | |
General information and basis of presentation | 1 General information and basis of presentation 1.1 General information OneConnect Financial Technology Co., Ltd. (the “Company”) was incorporated in the Cayman Islands on October 30, 2017 as an exempted company with limited liability under the Companies Law (Cap. 22, Law 3 of 1961 as consolidated and revised) of the Cayman Islands. The address of the Company’s registered office is PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The Company completed its initial public offering (“IPO”) on December 13, 2019 on the New York Stock Exchange. The Company has listed by way of introduction its ordinary shares on the Main Board of the Stock Exchange of Hong Kong Limited on July 4, 2022. On November 30, 2022, the Company announced its plans to change the ratio of its American Depositary Share ( “ ” “ ” The Company, its subsidiaries, its controlled structured entities (“Structured Entities”, “Variable Interest Entities” or “VIEs”) and their subsidiaries (“Subsidiaries of VIEs”) are collectively referred to as the “Group”. The Group is principally engaged in providing cloud-platform-based Fintech solutions, online information service and operating support service to financial institutions (the “Listing Business”) mainly in the People’s Republic of China (the “PRC”). The Company does not conduct any substantive operations of its own but conducts its primary business operations through its subsidiaries, VIEs and subsidiaries of VIEs in the PRC. Further details of the VIEs are set out in Note 1.2 below. These financial statements are presented in Renminbi (“RMB”), unless otherwise stated. 1.2 Organization and principal activities As at December 31, 2023, the Company had direct or indirect interests in the following major subsidiaries(which are all corporations) including consolidated structured entities. Equity interest held Place and date of Principal activities Issued and by the Group incorporation/ and place of paid-in capital/ As at December 31 Company name establishment operations Registered capital 2022 2023 Note Subsidiaries Jin Tai Yuan Limited British Virgin Islands /October 27, 2017 Investment holding, BVI USD747,940,498 100 % 100 % Jin Cheng Long Limited Hong Kong /October 30, 2017 Investment holding, Hong Kong, the PRC. USD747,940,498 100 % 100 % OneConnect Financial Technology (Hong Kong) Limited Hong Kong /March 15, 2018 Software and technology service, information transmission, Hong Kong, the PRC. USD1 100 % 100 % OneConnect Financial Technology (Singapore) Co., Pte. Ltd. Singapore /March 26, 2018 Software and technology service, information transmission, Singapore. SGD47,900,000 100 % 100 % PT OneConnect Financial Technology Indonesia Indonesia/December 04, 2018 Software and technology service, information transmission, Indonesia. IDR10,000,000,000 100 % 100 % Ping An OneConnect Bank (Hong Kong) Limited (“OneConnect Bank”) Hong Kong/December 07, 2018 Banking service, Hong Kong, the PRC. USD38,216,561 and HKD 1,200,000,000 100 % 100 % Shenzhen OneConnect Technology Services Co.,Ltd(“Shenzhen OneConnect Technology”) the PRC /January 04, 2018 Technology promotion and computer application services, Shenzhen, the PRC. RMB4,903,181,996/RMB4,960,000,000 100 % 100 % 1 General information and basis of presentation (Continued) 1.2 Organization and principal activities (Continued) Equity interest held Place and date of Issued and by the Group incorporation/ Principal activities and paid-in capital/ As at December 31 Company name establishment place of operations Registered capital 2022 2023 Note Subsidiaries (Continued) Beijing Vantage Point Technology Co., Ltd. (“Vantage Point Technology”) the PRC /July 18, 2008 Software and technology service, information transmission, Beijing, the PRC. RMB13,333,529 51.67 % 51.67 % (i) Shenzhen OneConnect Information Technology Service Company Limited (“Shenzhen OneConnect Information Technology”) the PRC/January 31, 2019 Software and technology service, information transmission, Shenzhen, the PRC. RMB100,000,000 51 % 51 % Beijing BER Technology Company Ltd. (“BER Technology”) the PRC/March 30,2006 Software and technology service, information transmission, Shenzhen, the PRC. RMB22,950,000 80 % 100 % (i) Zhang Tong Shun (Guangzhou) Technology Co., Ltd. (“Zhang Tong Shun”) the PRC/May 9, 2019 Information technology advisory services, Guangzhou, the PRC. RMB10,000,000 100 % 100 % (i) VIEs OneConnect Smart Technology Co., Ltd. (Shenzhen) (“Shenzhen OneConnect”) the PRC / September 15, 2017 Software and technology service, information transmission, Shenzhen, the PRC. RMB1,200,000,000 100 % 100 % Shenzhen E-Commerce Safety Certificates Administration Co., Ltd. (“Shenzhen CA”) the PRC/August 11, 2000 E-commerce security certificate administration, Shenzhen, the PRC. RMB543,500,000 98.9 % 98.9 % (i) Subsidiaries of the VIEs Shanghai OneConnect Financial Technology Co., Ltd. (“Shanghai OneConnect”) * the PRC / December 29, 2015 Software and technology service, asset management and consulting, Shanghai, the PRC. RMB1,200,000,000 100 % 100 % Shenzhen Kechuang Insurance Assessment Co., Ltd. (“Kechuang”) * the PRC / August 27, 2001 Insurance survey and loss adjustment, Shenzhen, the PRC. RMB4,000,000 100 % 100 % Shenzhen OneConnect Chuangpei Technology Co., Ltd. (“Chuangpei”) * the PRC / June 1, 2016 Software and technology service, information transmission, Shenzhen, the PRC. RMB10,000,000 100 % 100 % Zhuhai Yirongtong Asset Management Co., Ltd. (“Yirongtong”) * the PRC / June 21, 2016 Asset management and consulting, Zhuhai, the PRC. RMB12,000,000 100 % 100 % Ping An OneConnect Cloud Technology Co., Ltd. (“OneConnect Cloud Technology”) the PRC / June 27, 2016 Software and technology service, information transmission, Shenzhen, the PRC. RMB500,000,000 100 % 100 % * Subsidiaries of Shenzhen OneConnect Note: (i) The subsidiaries were acquired by the Group through business combination. 1 General information and basis of presentation (Continued) 1.2 Organization and principal activities (Continued) PRC laws and regulations prohibit or restrict foreign ownership of companies that provide internet-based business, which include activities and services provided by the Group. The Group operates its business operations in the PRC through a series of contractual arrangements entered into among a wholly-owned subsidiary of the Company and VIEs that legally owned by equity holders (“Nominee Shareholders”) authorized by the Group (collectively, “Contractual Arrangements”). The Contractual Arrangements include Exclusive Equity Purchase Option Agreement, Exclusive Business Cooperation Agreement, Exclusive Asset Option Agreement, Equity Pledge Agreement, Shareholder Voting Proxy Agreement, Letters of Undertakings and Spousal Consent Letters. Under the Contractual Arrangements, the Company has the power to control the management, and financial and operating policies of the VIEs, has exposure or rights to variable returns from its involvement with the VIEs, and has the ability to use its power over the VIEs to affect the amount of the returns. As a result, all these VIEs are accounted for as consolidated structured entities of the Company and their financial statements have also been consolidated by the Company. The principal terms of the Contractual Arrangements are further described below: (a) Contractual agreements with Shenzhen OneConnect - Exclusive Equity Purchase Option Agreement Pursuant to the exclusive equity purchase option agreement entered into between Shenzhen OneConnect Technology, Shenzhen OneConnect, the direct shareholders of Shenzhen OneConnect, and the shareholders of the direct shareholders of Shenzhen OneConnect, (each refer to as the “Indirect Shareholder”, together with the direct shareholders of Shenzhen OneConnect, “the Shenzhen OneConnect Shareholders”) (the “Exclusive Equity Purchase Option Agreement”), Shenzhen OneConnect Technology has the irrevocable and exclusive right to purchase, or to designate one or more persons to purchase, from Shenzhen OneConnect Shareholders all or any part of their equity interests in Shenzhen OneConnect at any time and from time to time in Shenzhen OneConnect Technology’s absolute discretion to the extent permitted by PRC laws. Unless terminated upon the parties’ agreement, this agreement will remain effective for ten years, and will be automatically renewed for another five years, unless Shenzhen OneConnect Technology objects to the renewal in writing thirty days prior this agreement’s expiry. - Exclusive Business Cooperation Agreement Pursuant to the exclusive business cooperation agreement entered into between Shenzhen OneConnect Technology and Shenzhen OneConnect, Shenzhen OneConnect agreed to engage Shenzhen OneConnect Technology as its exclusive provider of business support, technical and consulting services. In exchange for these services, Shenzhen OneConnect shall pay a service fee, which is equal to Shenzhen OneConnect’s profit before tax, after deducting any accumulated losses of Shenzhen OneConnect and its subsidiaries from the preceding fiscal year, working capital, costs, expenses, tax and other statutory contribution in relation to the respective fiscal year. The service fee shall be paid annually and shall be wired to the designated bank account of Shenzhen OneConnect Technology upon issuance of invoice by Shenzhen OneConnect Technology. The effective term of this agreement is the same as that of the Exclusive Equity Purchase Option Agreement described above. - Exclusive Asset Option Agreement Pursuant to the exclusive asset option agreement entered into between Shenzhen OneConnect Technology, Shenzhen OneConnect and the Shenzhen OneConnect Shareholders (the “Exclusive Asset Option Agreement”), Shenzhen OneConnect Technology has the irrevocable and exclusive right to purchase, or to designate one or more persons to purchase, from Shenzhen OneConnect all or any part of its assets at any time at Shenzhen OneConnect Technology’s absolute discretion and to the extent permitted by PRC laws. The consideration shall be the higher of (a) a nominal price or (b) the lowest price as permitted under applicable PRC laws. The effective term of this agreement is the same as that of the Exclusive Equity Purchase Option Agreement described above. 1 General information and basis of presentation (Continued) 1.2 Organization and principal activities (Continued) (a) Contractual agreements with Shenzhen OneConnect (Continued) - Equity Pledge Agreement Pursuant to the equity pledge agreement entered into between Shenzhen OneConnect Technology, Shenzhen OneConnect and the Shenzhen OneConnect Shareholders (the “Equity Pledge Agreement”), the Registered Shareholders agreed to pledge as first charge all of their equity interests in Shenzhen OneConnect to Shenzhen OneConnect Technology as collateral security for any and all of the guaranteed debt under the Contractual Arrangements and to secure the performance of their obligations under the Contractual Arrangements. During the pledge period, Shenzhen OneConnect Technology is entitled to receive any dividends or other distributable benefits arising from the equity. The pledge in favor of Shenzhen OneConnect Technology takes effect upon the completion of registration with the relevant administration for industry and commerce of China and shall remain valid until Shenzhen OneConnect Shareholders and Shenzhen OneConnect have discharged all their obligations and fully paid all the amounts payable under the Contractual Arrangements. - Shareholder Voting Proxy Agreement Shenzhen OneConnect Technology, Shenzhen OneConnect, the Shenzhen OneConnect Shareholders and the subsidiaries of Shenzhen OneConnect entered into a shareholder voting proxy agreement. Pursuant to this agreement, each shareholder of Shenzhen OneConnect and its subsidiaries irrevocably authorizes the persons designated by Shenzhen OneConnect Technology to act on its behalf to exercise all of such shareholder’s voting and other rights associated with the shareholder’s equity interest in Shenzhen OneConnect and the subsidiaries of Shenzhen OneConnect, such as the right to appoint or designate directors, supervisors and officers, as well as the right to sell, transfer, pledge or dispose of all or any portion of the shares held by such shareholder. The effective term of this agreement is the same as that of the Exclusive Equity Purchase Option Agreement described above. - Letters of Undertakings Each Indirect Shareholder signed a letter of undertakings to the Company. Under these letters, the signing Indirect Shareholder has separately irrevocably undertaken, in the event of his or her death or loss of capacity or any other events that could possibly affect his or her capacity to fulfil his or her obligations under the contractual arrangement of Shenzhen OneConnect, that he or she will unconditionally transfer his or her equity interest in Shenzhen OneConnect to any person designated by Shenzhen OneConnect Technology and the transferee will be deemed to be a party to the contractual arrangements and will assume all of his or her rights and obligations as such under the contractual arrangements. Each signing Indirect Shareholder represents that his or her spouse has no ownership interest in his or her equity interests in Shenzhen OneConnect. Each signing Indirect Shareholder further represents that in any circumstances, he or she will not, directly or indirectly, commit any conduct, measure, action or omission that is contrary to the purpose and intention of the contractual arrangements, that leads or may lead to any conflict of interest between Shenzhen OneConnect and OneConnect Financial Technology Co., Ltd. and/or its subsidiaries, and that if, during his or her performance of the contractual arrangements, there is a conflict of interest between the signing Indirect Shareholder and OneConnect Financial Technology Co., Ltd. and/or its subsidiaries, the signing Indirect Shareholder will protect the legal interests of Shenzhen OneConnect Technology under the contractual arrangements and follow the instructions of the Company. 1 General information and basis of presentation (Continued) 1.2 Organization and principal activities (Continued) (a) Contractual agreements with Shenzhen OneConnect (Continued) - Spousal Consent Letters Under the spousal consent letters, each signing spouse respectively agreed that he or she was aware of the equity interest beneficially owned by his or her spouse in Shenzhen OneConnect and the relevant Contractual Arrangements in connection with such equity interest. The signing spouse unconditionally and irrevocably confirmed that he or she does not have any equity interest in Shenzhen OneConnect and committed not to impose any adverse assertions upon his or her spouse’s respective equity interest. Each signing spouse further confirmed that such equity interest may be disposed of pursuant to the relevant Contractual Arrangements, and committed that he or she will take all necessary measures for the performance of those arrangements. (b) Contractual agreements with Shenzhen CA Shenzhen CA and certain of its shareholders holding in the aggregate 98.9% of the equity interest in Shenzhen CA entered into a series of contractual agreements with Zhang Tong Shun. These agreements contain terms substantially similar to the contractual arrangements among Shenzhen OneConnect, Shenzhen OneConnect Shareholders and Shenzhen OneConnect Technology described above. (c) Risks in relation to the VIEs In the opinion of the Company’s management, the Contractual Arrangements discussed above have resulted in the Company, Shenzhen OneConnect Technology and Zhang Tong Shun having the power to direct activities that most significantly impact the VIEs, including appointing key management, setting up operating policies, exerting financial controls and transferring profit or assets out of the VIEs at its discretion. The Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs under its control. Therefore, the Company considers that there is no asset in any of the VIEs that can be used only to settle obligations of the VIEs, except for registered capital, capital reserve and PRC statutory reserves of the VIEs totalling RMB1,774 million and RMB 1,782 million as of December 31, 2022 and 2023, respectively. Currently there is no contractual arrangement that could require the Company to provide additional financial support to the VIEs. As the Company is conducting its Internet-related business mainly through the VIEs, the Company may provide such support on a discretional basis in the future, which could expose the Company to a loss. As the VIEs organized in the PRC were established as limited liability companies under PRC law, their creditors do not have recourse to the general credit of Shenzhen OneConnect Technology and Zhang Tong Shun for the liabilities of the VIEs, and Shenzhen OneConnect Technology and Zhang Tong Shun do not have the obligation to assume the liabilities of these VIEs. In the opinion of the Company’s management, the contractual arrangements among its subsidiaries, the VIE and their respective Nominee Shareholders are in compliance with current PRC laws and are legally binding and enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. In addition, the enforceability of the contractual agreements between the Company, the VIE and its shareholders depends on whether the Company’s shareholders or their PRC holding entities will fulfil these contractual agreements. As a result, the Company may be unable to consolidate the VIE and VIE’ subsidiaries in the consolidated financial statements. On March 15, 2019, the Foreign Investment Law was formally passed by the thirteenth National People’s Congress and it became effective on January 1, 2020. The Foreign Investment Law replaced the Law on Sino Foreign Equity Joint Ventures, the Law on Sino Foreign Cooperative Joint Ventures and the Law on Foreign Capital Enterprises and became the legal foundation for foreign investment in the PRC. The Implementation Regulations for the Foreign Investment Law was promulgated by the State Council on December 26, 2019, became effective on January 1, 2020, and replaced the corresponding implementation rules of the Law on Sino-Foreign Equity Joint Ventures, the Law on Sino-Foreign Cooperative Joint Ventures and the Law on Foreign-Capital Enterprises. 1 General information and basis of presentation (Continued) 1.2 Organization and principal activities (Continued) (c) Risks in relation to the VIEs (Continued) The Foreign Investment Law stipulates certain forms of foreign investment. However, the Foreign Investment Law does not explicitly stipulate contractual arrangements such as those we rely on as a form of foreign investment. Notwithstanding the above, the Foreign Investment Law stipulates that foreign investment includes “foreign investors investing through any other methods under laws, administrative regulations or provisions prescribed by the State Council.’’ Future laws, administrative regulations or provisions prescribed by the State Council may possibly regard Contractual Arrangements as a form of foreign investment. If this happens, it is uncertain whether the Contractual Arrangements with the VIE and its shareholders would be recognized as foreign investment, or whether the Contractual Arrangements would be deemed to be in violation of the foreign investment access requirements. As well as the uncertainty on how the Contractual Arrangements will be handled, there is substantial uncertainty regarding the interpretation and the implementation of the Foreign Investment Law. The relevant government authorities have broad discretion in interpreting the law. Therefore, there is no guarantee that the Contractual Arrangements, the business of the VIEs and financial conditions of the Company will not be materially and adversely affected. The Company’s ability to control VIEs also depends on rights provided to Shenzhen OneConnect Technology and Zhang Tong Shun, under the Shareholder Voting Proxy Agreement, to vote on all matters requiring shareholder approval. As noted above, the Company believes Shareholder Voting Proxy Agreement is legally enforceable, but they may not be as effective as direct equity ownership. In addition, if the corporate structure of the Group or the Contractual Arrangements between the Shenzhen OneConnect Technology, and Zhang Tong Shun, the VIEs and their respective shareholders and subsidiaries were found to be in violation of any existing PRC laws and regulations, the relevant PRC regulatory authorities could: ● revoke the Group’s business and operating licenses; ● require the Group to discontinue or restrict its operations; ● impose fines or confiscate any of the Group’s income that they deem to have been obtained through illegal operations; ● require the Group to restructure the ownership structure or operations, re-apply for the necessary licenses or relocate its businesses, staff and assets; ● impose additional conditions or requirements with which the Group may not be able to comply; or ● restrict or prohibit the Group’s use of the proceeds from public offerings or other of the Group’s financing activities to finance the business and operations of the VIEs and their subsidiaries; or ● take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. The imposition of any of these restrictions or actions may result in a material adverse effect on the Company’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Company to lose the right to direct the activities of the VIEs or the right to receive their economic benefits, the Company would no longer be able to consolidate the financial statements of the VIEs. In the opinion of management, the likelihood of losing the benefits in respect of the Company’s current ownership structure or the contractual arrangements with its VIEs is remote. 1 General information and basis of presentation (Continued) 1.2 Organization and principal activities (Continued) (c) Risks in relation to the VIEs (Continued) The following are major financial statements amounts and balances of the Group’s VIEs and subsidiaries of VIEs (i.e. Shenzhen OneConnect, Shenzhen CA and their subsidiaries) of December 31, 2022 and 2023 and for the years ended December 31, 2021, 2022 and 2023. As at December 31, 2022 2023 RMB’000 RMB’000 Total current assets 3,865,127 3,058,529 Total non‑current assets 906,455 603,914 Total assets 4,771,582 3,662,443 Total current liabilities 7,645,984 6,676,641 Total non‑current liabilities 27,902 24,291 Total liabilities 7,673,886 6,700,932 For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Total revenue 3,723,306 4,064,707 3,261,285 Net loss (708,699) (195,819) (68,079) Net cash used in operating activities (439,174) (618,574) (149,778) Net cash generated from investing activities 3,633 918,498 75,598 Net cash generated from/ (used in) financing activities 108,564 368,778 (508,121) Net (decrease)/increase in cash and cash equivalents (326,977) 668,702 (582,301) Cash and cash equivalents, beginning of the year 564,527 237,550 906,252 Cash and cash equivalents, end of the year 237,550 906,252 323,951 The above financial statements amounts and balances have included intercompany transactions which have been eliminated on the Company’s consolidated financial statements. As of December 31, 2022 and 2023, the total assets of Group’s VIEs were mainly consisting of cash and cash equivalents, trade receivable, contract assets, prepayments and other receivables, financial assets at fair value through profit or loss, property and equipment, intangible assets and deferred tax assets. As of December 31, 2022 and 2023, the total liabilities of VIEs were mainly consisting of trade and other payables, payroll and welfare payables, contract liabilities and short-term borrowings. |
Basis of preparation and change
Basis of preparation and changes in accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Basis of preparation and changes in accounting policies | |
Basis of preparation and changes in accounting policies | 2 Basis of preparation and changes in accounting policies The principal accounting policies applied in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to all the years presented unless otherwise stated. 2.1 Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards (“IFRSs”) issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets measured at fair value through other comprehensive income, financial assets at fair value through profit or loss and derivative financial assets and liabilities, which are carried at fair value and subsequent changes are recognized in the statement of comprehensive income. The preparation of the consolidated financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4 below. 2.2 Recent accounting pronouncements (a) New and amended standards and interpretations adopted by the Group The Group has applied the following standards and amendments for the first time for their annual reporting period commencing January 1, 2023: ● IFRS 17 Insurance Contracts ● Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies ● Amendments to IAS 8 – Definition of Accounting Estimates ● Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendment to IAS 12 – International tax reform – pillar two model rules The amendments listed above did not have material impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods. 2 Basis of preparation and changes in accounting policies (Continued) 2.2 Recent accounting pronouncements (Continued) (b) New standards and amendments to standards and interpretations not yet adopted Several new standards and amendments to standards and interpretations have been issued but not effective during the year 2023 and have not been early adopted by the Group in preparing these consolidated financial statements: Effective for annual periods beginning on or after Amendments to IAS 1 – Classification of Liabilities as Current or Non-current January 1, 2024 Amendments to IAS 1 – Non-current liabilities with covenants January 1, 2024 Amendments to IFRS 16 – Lease liability in sale and leaseback January 1, 2024 Amendments to IAS 7 and IFRS 7 – Supplier finance arrangements January 1, 2024 Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined Amendments to IAS 21 – Lack of Exchangeability January 1, 2025 The above new standards, new interpretations and amended standards are not expected to have a material impact on the consolidated financial statements of the Group. |
Summary of accounting policy in
Summary of accounting policy information | 12 Months Ended |
Dec. 31, 2023 | |
Summary of accounting policy information | |
Summary of accounting policy information | 3 Summary of accounting policy information 3.1 Material accounting policies 3.1.1 Revenue recognition Revenue represents the amount of consideration the Group is entitled to upon the transfer of promised goods or services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). Revenues are recognized when or as control of the asset or service is transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the goods and services may be transferred over time or at a point in time. Control of the goods and services is transferred over time if the Group’s performance: ● provides all of the benefits received and consumed simultaneously by the customer; ● creates and enhances an asset that the customer controls as the Group performs; or ● does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. The progress towards complete satisfaction of the performance obligation is measured based on one of the following methods that best depict the Group’s performance in satisfying the performance obligation: ● direct measurements of the value transferred by the Group to the customer; or ● the Group’s efforts or inputs to the satisfaction of the performance obligation. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.1 Revenue recognition (Continued) When either party to a contract has performed, the Group presents the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A contract asset is the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. If the value ascribed to the services rendered by the Group exceed the payment, a contract asset is recognized. Judgement is required in determining whether a right to consideration is unconditional and thus qualifies as a receivable. A receivable is recorded when the Group has an unconditional right to consideration on the date the payment is due even if it has not yet performed under the contract. If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract as a contract liability when the payment is made or the payment is due (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. A contract liability is recognized as revenue upon transfer of control to the customers of the promised license, products and services. Some of the Group’s contracts with customers contain multiple performance obligations. For these contracts, the Group accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Although each of the performance obligations sometimes has a separate contractual price agreed in the contract, the management compares the contractual price with observable standalone market price, if any, or cost plus a margin price to assess the reasonableness of the pricing. If the contractual price for each performance obligation is assessed to be on market price basis, the Group uses the contractual price to measure and recognize revenue for each performance obligation. If the contractual price for each performance obligation is assessed to be not on market price basis, the Group reallocates the total contract price to the identified performance obligations based on its best estimated standalone selling price of each performance obligation. Only the contracts for business origination services (Note 3.1.1(b)) contain significant financing components. As a practical expedient, the Group does not account for financing components if the period between when the Group transfers the promised goods or services to the customer and when the customer pays for those goods or services is one year or less. Incremental costs of obtaining customer contract primarily consist of sales commissions and are capitalized as an asset. The Group amortizes assets recognized from capitalizing costs to obtain a contract on a systematic basis to profit or loss, consistent with the pattern of revenue recognition to which the asset relates. As a practical expedient, the Group recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Group otherwise would have recognized is one year or less. The following is a description of the accounting policy for the principal revenue streams of the Group. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.1 Revenue recognition (Continued) (a) Implementation and post-implementation support services Implementation services represent customer-specific software development or customization services provided to customers for the use of the Group’s software in cloud offerings or on-premise IT environment. The implementation contract is either on a time and material basis or fixed-fee basis. The Group invoices fees for implementation services based on actual time and materials incurred to date or according to pre-agreed payment schedules. After development, license to use the software is granted to the customer with an indefinite life. The customer cannot benefit from the implementation service on its own without the license. The perpetual license is a result of the implementation service. The implementation service and the perpetual license are highly interrelated and within the context of the contract, the promise of the Group is to transfer the implementation service together with the perpetual license as one output to its customers. Both the implementation service and the perpetual license to use the software are not distinct and thus should be combined together as one performance obligation. And there is no sales/usage-based royalty for the license to use the software in the arrangement. The Group’s customer contracts often include both implementation services and post-implementation support services. Customers can benefit from implementation service and post-implementation support service on their own, and those services are clearly stated in the contract and are separately identifiable, they are not integrated or interrelated with each other, and do not significantly affect each other. For implementation services, revenue is recognized over time if the Group’s performance (i) provides all of the benefits received and consumed simultaneously by the customer, (ii) creates and enhances an asset that the customer controls as the Group performs, or (iii) does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. Accordingly, revenue for implementation contracts is recognized over the contract terms by reference to the progress of work performed, which is measured based on costs incurred toward satisfying the performance obligation, relative to total costs expected to be incurred to the complete satisfaction of the performance obligation. Otherwise revenue is recognized at a point in time when control of the promised services is transferred to the customer. For post-implementation support services, the performance obligation is to stand ready to provide technical support and unspecified updates and upgrades on a when-and-if-available basis. The customers simultaneously receive and consume the benefits of these support services as the Group performs and revenue is recognized based on time elapsed and thus ratably over the term of the support arrangement. (b) Transaction based service The Group derives its transaction based service revenue primarily from business origination services, risk management services, operation support services and other services. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.1 Revenue recognition (Continued) (b) Transaction based service (Continued) Business origination services The Group provides business origination services by assisting financial institutions in customer acquisition for their products including loans, wealth management products and insurance policies etc. In order to satisfy its performance obligations (that is generating customer leads for financial institutions), the Group designs marketing plans, sources leads and analyzes the leads. The Group generates customer leads for financial institutions through its own platform or from channel partners. The leads, which are sourced from the Group’s own platform or from the channel partners, are grouped together and are screened and analyzed by the Group to ensure that they meet customers’ criteria. When the leads are sourced from the channel partners, the Group determined that it is the principal in providing the business origination services to the financial institutions because the Group controls the leads sourced from channel partners, screens and analyzes the leads before delivering those leads to customers. For business origination services, the Group is primarily responsible for fulfilling the promise to generate customer leads to financial institutions and has full discretion in establishing the price for the business origination services provided to financial institutions, as well as the selection of and determination of prices paid to the channel partners. Accordingly, the Group records revenue based on the gross amount payable by the financial institutions and records the amount payable to the channel partners as cost of revenue. The Group normally charges its customers based on successful referrals at fixed charge rates.The revenue for business origination services is recognized when a referral is successfully accepted by financial institutions. The Group determined that it is not the legal lender and legal borrower (or receiver of deposits from investors) in the loan origination and repayment process. Therefore, the Group does not record loans receivable and payable arising from the loans between lenders and borrowers. The Group acts as an agent to facilitate such loans. Operation support services Operation support services mainly represent calling services and insurance loss assessment services, digital certification and related services and solutions, service management platforms to participants around auto aftermarket scenarios, asset monitoring services and consulting services provided to financial institutions. For contracts which the Group charges its customers based on usage of the services at fixed charge rates, and invoices the fees on periodical basis, the revenue from these services is recognized at a point in time when the customers receive and consume the benefits of these services each time the Group performs, based on the amount charged for such services. For contracts which the Group charges its customers based on the term of services and invoices the fee on periodical basis, and the performance obligation is to stand ready to provide operation support, the customers simultaneously receive and consume the benefits of these support services as the Group performs and revenue is recognized over time based on time elapsed and thus ratably over the term of the support arrangement. When the consideration receivable is different from the revenue recognized, a “contract asset” or “contract liability” shall be recognized in the consolidated statement of financial position. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.1 Revenue recognition (Continued) (b) Transaction based service (Continued) Risk management services Risk management services mainly represent credit risk assessment, identity verification service, risk management services used in insurance loss assessment and anti-fraud services provided to financial institutions. For risk management services contracts, the Group normally charges its customers based on usage of the services at fixed charge rates, and invoices the fees on periodical basis. The revenue from these services is recognized at a point in time when the customers receive and consume the benefits of these services each time the Group performs, based on the amount charged for such services. Cloud platform services Cloud platform services mainly represent providing financial institutions with value-added services including computing, storage, database and backup services on a variety of cloud infrastructures. For cloud platform contracts, the Group normally charges its customers based on usage of the services at fixed charge rates, and invoices the fees on periodical basis. The revenue from these services is recognized over time based on time elapsed and thus ratably over the contract terms when the customers receive and consume the benefits of these services. Others Other revenue mainly represents sales of products, asset management services and revenue from virtual bank. For sales of products, the Group recognizes revenue net of discounts and return allowances upon the time when the products are delivered to customers. (c) For virtual bank , interest income from debt instruments measured at amortized cost and debt instruments measured at fair value through other comprehensive income is recognized in revenue using the effective interest rate method. Fees and commissions are recognized on an accrual basis when the service has been provided or significant act performed. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.2 Intangible assets The Group’s intangible assets include application and platforms, purchased software, development costs in progress, goodwill, business licenses and others. Intangible assets can be recognized only when future economic benefits expected to be obtained from the use of the item will flow into the Group and its cost can be measured reliably. Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is the fair value as at the date of acquisition. Costs associated with maintaining application and platform are recognized as an expense as incurred. Development costs that are directly attributable to the development and testing of identifiable application and platform controlled by the Group are recognized as intangible assets when the following criteria are met: ● it is technically feasible to complete the application and platform so that it will be available for use ● management intends to complete the application and platform and use or sell it ● there is an ability to use or sell ● it can be demonstrated how the application and platform will generate probable future economic benefits ● adequate technical, financial and other resources to complete the development and to use or sell the application and platform are available, and ● the expenditure attributable to the application and platform during its development can be reliably measured. Directly attributable costs that are capitalized mainly include employee costs and technology service fees. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is ready for use. The useful lives of intangible assets are assessed by the period of bringing economic benefits for the Group. The useful lives of intangible assets excluding development cost in progress are set as follows: Expected useful life ● 3 - 10 years ● 3 - 10 years ● 3 - 5 years Intangible assets with finite lives are subsequently amortized on the straight-line basis over the useful economic life. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed, and adjusted if appropriate, at least at each year end. Intangible assets with indefinite useful lives and development costs in progress are not amortized, but are subject to annual impairment assessment. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.3 Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that a non-financial asset other than deferred tax assets may be impaired. If any such indication exists, or when annual impairment testing for a non-financial asset is required, the Group makes an estimate of the asset’s recoverable amount. A non-financial asset’s recoverable amount is the higher of the asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the recoverable amount is determined for the cash-generating unit to which the asset belongs. Where the carrying amount of a non-financial asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to disposal, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators. For non-financial assets other than goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such an indication exists, the Group makes an estimate of the recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such a reversal is recognized in the statement of comprehensive income. Goodwill is reviewed for impairment, annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Impairment is determined by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units), to which the goodwill relates. The recoverable amount is the higher of its fair value less costs of disposal and its value-in-use, determined on an individual asset (or cash-generating unit) basis, unless the individual asset (or cash-generating unit) does not generate cash flows that are largely independent from those of other assets or groups of assets (or groups of cash-generating units). Impairment losses recognized in relation to goodwill are not reversed for subsequent increases in its recoverable amount. Intangible assets with indefinite useful lives and development costs in progress are tested for impairment annually at each year end either individually or at the cash-generating unit level, as appropriate. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.4 Financial assets Classification The Group classifies its financial assets in the following measurement categories: ● those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and ● those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held and the cash flow characteristics of the asset. For investments in equity instruments, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment measured at fair value through other comprehensive income. The Group reclassifies debt investments when and only when its business model for managing those assets changes. Recognition and measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the consolidated statement of comprehensive income. (a) Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments: ● Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other income, gains or loss together with foreign exchange gains and losses. Impairment losses are presented in the consolidated statements of comprehensive income. ● Fair value through other comprehensive income (“FVOCI”): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other income, gains or loss. Interest income from these financial assets is included in other gain using the effective interest rate method. Foreign exchange gains and losses are presented in other income, gains or loss and impairment expenses are presented in the statement of profit or loss. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.4 Financial assets (Continued) Recognition and measurement (Continued) (a) Debt instruments (Continued) ● Fair value through profit or loss (“FVPL”): Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognized in profit or loss and presented net within other income, gains or loss in the period in which it arises. (b) Equity instruments The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognized in profit or loss. Changes in the fair value of financial assets at fair value through profit or loss are recognized in profit or loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. (c) The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Expected credit loss refers to the weighted average amount of credit loss of financial instruments based on the probability of default. Credit loss refers to the difference between all contractual cash flows receivable and all cash flows that the entity expects to receive, discounted at the original effective interest rate. The Group recognizes or reverses the impairment provision through profit or loss. For debt instruments measured at FVOCI, impairment gains or losses are included in the net impairment losses on financial instruments and correspondingly reduce the accumulated changes in fair value included in the OCI reserves of equity. For trade receivables and contract assets, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the assets. The impairment matrix is determined based on historical observed default rates over the expected life of the contract assets and trade receivables with similar credit risk characteristics and is adjusted for forward-looking estimates. At every reporting date the historical observed default rates are updated and changes in the forward-looking estimates are analyzed. Impairment on other receivables are measured as either 12-month expected credit losses or lifetime expected credit losses, depending on whether there has been a significant increase in credit risk since initial recognition. If a significant increase in credit risk of a receivable has occurred since initial recognition, then impairment is measured as lifetime expected credit losses. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.5 Share-based payments An equity-settled share-based compensation plan was granted to the employees and non-employees, under which the entity receives services from employees and non-employees as consideration for equity instruments (options) of the Group. The fair value of the services received in exchange for the grant of the options is recognized as an expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted: ● ● ● The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the non-market performance and service conditions. It recognizes the impact of the revision to original estimates, if any, in the statement of comprehensive income, with a corresponding adjustment to equity. If the terms of an equity-settled award are modified, at a minimum an expense is recognized as if the terms had not been modified. An additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification. If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph. 3.1.6 Tax Income tax comprises current and deferred tax. Income tax is recognized in the statement of comprehensive income, or in other comprehensive income or in equity if it relates to items that are recognized in the same or a different period directly in other comprehensive income or in equity. Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except: ● when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and ● in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in jointly controlled entities, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. 3 Summary of accounting policy information (Continued) 3.1 Material accounting policies (Continued) 3.1.6 Tax (Continued) Deferred tax assets are recognized for all deductible temporary differences, the carry-forward of unused tax credits and any unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax credits and unused tax losses can be utilized, except: ● when the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and ● in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in jointly controlled entities, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Conversely, previously unrecognized deferred tax assets are reassessed at the end of each reporting period and are recognized to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. 3.2 Summary of other accounting policies 3.2.1 Principles of consolidation and equity accounting 3.2.1.1 Subsidiaries Subsidiaries are all entities (including structured entities or VIEs as stated in Note 1.2 above) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involve |
Critical accounting estimates a
Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2023 | |
Critical accounting estimates and judgments | |
Critical accounting estimates and judgments | 4 Critical accounting estimates and judgments The Group makes estimates and judgments that affect the reported amounts of revenues, expenses, assets and liabilities in these financial statements. Estimates and judgments are continually assessed based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the process of applying the Group’s accounting policies, management has made the following judgments and accounting estimation, which have the most significant effect on the amounts recognized in the financial statements. (a) Impairment of financial assets measured at amortized costs The Group applies expected credit losses model in measuring impairment of trade receivables, contract assets, other receivables, loans and advances to customers. The expected loss rates are based on the Group ’ Details of the methodology and key inputs used are disclosed in Note 5.1(b)(ii). (b) Income taxes The Group is subject to income taxes in numerous jurisdictions. Judgement is required in determining the provision for income taxes. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the deductible temporary difference can be utilized. To determine the future taxable profits, reference is made to the latest available profit forecasts. Where the temporary difference is related to losses, relevant tax law is considered to on a jurisdictional basis determine the availability of the losses to offset against the future taxable profits. Significant items on which the Group has exercised accounting judgment include recognition of deferred tax assets in respect of tax losses. Recognition of the deferred tax assets involves judgment regarding the future financial performance of the Group. The deferred tax assets recognized as at December 31, 2022, 2023 were mainly attributable to major operating companies in Mainland China, which are eligible for preferential tax policies applicable for the qualification of “High and New Technology Enterprise” , and being entitled to a preferential income tax rate of 15% and the number of years that deductible tax losses can be utilized is extended to 10 years. The carrying amount and reliability of deferred tax assets were reviewed periodically at the end of each reporting period by comparing forecasted taxable profits in prior period to actual results in the current period and comparing revenue growth rate and profit margin in the current year forecast to historical results and industry trends. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact current income tax and deferred income tax in the period in which such determination is made. (c) Recognition of share-based compensation expenses As mentioned in Note 27, equity-settled share-based compensation schemes were established for the employees. The directors have used applicable models to determine the grant date fair value of the options or restricted shares granted to employees, which is to be expensed over the vesting period. Significant estimate on assumptions, such as the underlying equity value, risk-free interest rate, expected volatility and dividend yield, is required to be made by the directors in applying the relevant models. The values of options or restricted shares are subject to subjectivity and uncertainty relating to the assumptions and limitation of the model used to estimate such values. In addition, The Group is required to estimate the percentage of grantees that will remain in employment with the Group and whether the performance conditions for vesting will be met at the end of the vesting period. The Group only recognizes an expense for those share options or restricted shares expected to vest over the vesting period. 4 Critical accounting estimates and judgments (Continued) (d) Impairment of intangible assets including goodwill The Group is required to test impairment for goodwill, and intangible assets not ready for use on an annual basis or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Other intangible assets are tested whenever events or changes in circumstances indicate that the carrying amount of those assets exceeds its recoverable amount. Intangible assets are tested for impairment based on the recoverable amount of the cash generating unit (“CGU”) to which these assets are related. The recoverable amount is determined based on the higher of fair value less costs to sell and value in use. Determination of the value in use is an area involving management judgment in order to assess whether the carrying value of intangible assets can be supported by the net present value of future cash flows. In calculating the net present value of the future cash flows, certain assumptions are required to be made in respect of highly uncertain areas including management ’ Details of the methodology and key inputs used are disclosed in Note 14. (e) Consolidation of VIEs As disclosed in Note 1.2, the Group exercises control over the VIEs and has the right to recognize and receive substantially all the economic benefits through the Contractual Arrangements. The Group considers that it controls the VIEs notwithstanding the fact that it does not hold direct equity interests in the VIEs, as it has power over the financial and operating policies of the VIEs and receive substantially all the economic benefits from the business activities of the VIEs through the Contractual Arrangements. Accordingly, all these VIEs are accounted for as controlled structured entities and their financial statements have also been consolidated by the Company. |
Management of financial risk
Management of financial risk | 12 Months Ended |
Dec. 31, 2023 | |
Management of financial risk | |
Management of financial risk | 5 Management of financial risk The Group’s activities expose it to a variety of financial risks: market risk (comprising currency risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out by the senior management of the Group. 5.1 Financial risk factors (a) Market risk Currency risk Foreign currency risk is the risk of loss resulting from changes in foreign currency exchange rates. Fluctuations in exchange rates between the RMB and other currencies in which the Group conducts business may affect its financial position and results of operations. The foreign currency risk assumed by the Group mainly comes from movements in the USD/RMB exchange rates. The Company and overseas intermediate holding companies’ functional currency is USD. They are mainly exposed to foreign exchange risk arising from their cash and cash equivalents and loans to group companies denominated in RMB. The Group has entered into spot-forward USD/RMB derivative financial instruments to hedge certain portion of its exposure to foreign currency risk arising from loans to group companies denominated in RMB. The Group monitors the size of foreign currency position, and manages foreign currency risk by utilizing hedging strategy. 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (a) Market risk (Continued) Currency risk (Continued) The subsidiaries of the Group are mainly operated in mainland China with most of the transactions settled in RMB. The Group considers that the business in mainland China is not exposed to any significant foreign exchange risk as there are no significant financial assets or liabilities of these subsidiaries denominated in the currencies other than the respective functional currency. The analysis below is performed for reasonably possible movements in key variables with all other variables held constant, showing the post-tax impact on profit and equity, after considering hedging strategy. At December 31, 2021 2022 2023 Impact on post tax profit RMB’000 RMB’000 RMB’000 USD+5% (4,028) 1,752 (16,596) USD -5% 4,028 (1,752) 16,596 Interest rate risk Interest rate risk is the risk of an adverse impact to earnings or capital due to changes in market interest rates. Floating rate instruments expose the Group to cash flow interest rate risk, whereas fixed rate instruments expose the Group to fair value interest risk. Interest rate risk of the Group is mainly from mismatches in the interest rate profiles of assets, liabilities and capital instruments in Virtual Bank Business. The sensitivity analysis on earnings and economic value is described as follows: As at December 31, 2023 RMB million HKD USD RMB Impact on earnings over the next 12 months if interest rates rise by 200 basis points (15) 3 — Impact on economic value if interest rates rise by 200 basis points (43) (3) — As at December 31, 2022 RMB million HKD USD RMB Impact on earnings over the next 12 months if interest rates rise by 200 basis points (9) 9 1 Impact on economic value if interest rates rise by 200 basis points (25) (1) — 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (b) Credit risk (i) Credit risk management The Group’s credit risk is mainly associated with cash and cash equivalents, restricted cash and time deposits over three months, trade receivables, contract assets, other receivables, financial assets measured at amortized cost from Virtual Bank and financial guarantee contracts. The carrying amounts of each class of the above financial assets represent the Group’s maximum exposure to credit risk in relation to financial assets as disclosed in Note 5.1 (b) (ii). To manage this risk arising from cash and cash equivalents and restricted cash and time deposits over three months, the Group mainly transacts with state-owned or reputable financial institutions in the PRC including related parties (Note 36(d)) and reputable international financial institution outside the PRC. The Group considers that there is no significant credit risk and the Group will not suffer any material losses due to the default of these financial institutions. The Group’s trade receivables and contract assets mainly arise from transactions undertaken with customers. The Group mitigates the credit risk by assessing the credit quality, setting a shorter credit period or arranging the instalment payment and prepayment method. The impairment loss allowance for trade receivables and contract assets are disclosed in Note 19 and Note 6. For other receivables, management make periodic collective assessments as well as individual assessment on the recoverability based on historical settlement records and forward looking information. For financial assets measured at amortized cost from virtual bank, management developed independent and regular procedures to review the approvals of credit applications, structure levels of credit risk by setting limits on the exposure of risk, and review the ability of borrowers to meet repayment obligations, with monitoring made on a revolving basis and performing periodic reviews. The credit programmes are managed on a portfolio basis, and the limits on the level of credit risk by sectors are approved annually by the management. The exposure to credit risk is mitigated by obtaining relevant financial guarantees. For debt securities and interbank exposure under treasury portfolio, external ratings are used, which are continuously monitored and updated. (ii) ECL measurement For financial assets whose impairment losses are measured using expected credit loss (“ECL”) model, the Group assesses whether their credit risk has increased significantly since their initial recognition, and applies a three-stage impairment model to calculate their impairment allowance and recognize their ECL, as follows: - - - 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (b) Credit risk (Continued) (ii) ECL measurement (Continued) The Group considers the credit risk characteristics of different financial instruments when determining if there is significant increase in credit risk. For financial instruments with or without significant increase in credit risk, 12-month or lifetime expected credit losses are provided respectively. The expected credit loss is the result of discounting the product of Exposure at Default, Probabilities of Default and Loss given Default. According to whether the credit risk has increased significantly or whether the assets have been impaired, the Group measures the impairment loss allowance with the expected credit losses of 12-month or the lifetime due to the credit risk characteristics of different assets. The Group applies the IFRS 9 simplified approach in measuring expected credit losses which uses a lifetime expected impairment loss allowance for all trade receivables and contract assets. Judgement of significant increase in credit risk (“SICR”) Under IFRS 9, when considering the impairment stages for financial assets, the Group evaluates the credit risk at initial recognition and also whether there is any significant increase in credit risk for each reporting period. The Group set quantitative and qualitative criteria to judge whether there has been a SICR after initial recognition. The judgement criteria mainly includes the Probabilities of Default changes of the debtors, changes of credit risk categories and other indicators of SICR, etc.. In the judgement of whether there has been a SICR after initial recognition, the Group has not rebutted the 30 days past due as presumption of SICR. The definition of credit-impaired assets Under IFRS 9, in order to determine whether credit impairment occurs, the defined standards adopted by the Group are consistent with the internal credit risk management objectives for relevant financial assets while considering quantitative and qualitative indicators. When the Group assesses whether the debtor has credit impairment, the following factors are mainly considered: ● The debtor has overdue more than 90 days after the contract payment date ● The debtor has significant financial difficulties ● The debtor is likely to go bankrupt or other financial restructuring ● The lender gives the debtor concessions for economic or contractual reasons due to the debtor’s financial difficulties, where such concessions are normally reluctant to be made by the lender The credit impairment of financial assets may be caused by the joint effects of multiple events and may not be caused by separately identifiable event. 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (b) Credit risk (Continued) (ii) ECL measurement (Continued) Forward-looking information The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors that affect the ability of the debtors to settle the receivables. The Group has developed macroeconomic forward-looking adjustment model by establishing a pool of macro-economic indicators, preparing data, filtering model factors and adjusting forward-looking elements, and the indicators include country Gross Domestic Product(GDP), Consumer Price Index(CPI), Producer Price Index(PPI), Investment in Fixed Assets, and Total Retail Sales of Consumer Goods, etc. based on the statistical analysis of historical data. The Group has identified the CPI to be the most relevant factor for evaluating expected credit losses on 31 December 2023, and has also taken into account of the Hong Kong GDP and the unemployment rate in Virtual Bank operations, and accordingly adjusts the historical loss rates based on the expected changes in these factors. Credit risk exposure Without considering the impact of collateral and other credit enhancement, for on-balance sheet assets, the maximum exposures are based on net carrying amounts as reported in the consolidated financial statements. (1) Trade receivables and contract assets As at December 31, 2022 RMB’000 RMB’000 RMB’000 Trade Contract receivables assets Total Gross carrying amount Applying simplified approach 998,036 182,480 1,180,516 Loss allowance Applying simplified approach 57,047 59,852 116,899 As at December 31, 2023 RMB’000 RMB’000 RMB’000 Trade Contract receivables assets Total Gross carrying amount Applying simplified approach 779,458 153,204 932,662 Loss allowance Applying simplified approach 68,789 57,379 126,168 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (b) Credit risk (Continued) (ii) ECL measurement (Continued) Credit risk exposure (Continued) (1) To measure the expected credit losses, all trade receivables and contract assets have been grouped based on shared credit risk characteristics and the aging analysis. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The impairment loss allowance of trade receivables and contract assets applying simplified approach was determined as follows: As at December 31, 2022 Related Up to 1 year to 2 year to Above parties 1 year 2 year 3 year 3 years Total Expected loss rate 2.27 % 3.33 % 42.80 % 68.40 % 97.75 % 9.90 % Gross carrying amount of trade receivables and contract assets applying simplified approach 391,221 657,723 63,170 26,482 41,920 1,180,516 Loss allowance of trade receivables and contract assets applying simplified approach 8,888 21,885 27,038 18,113 40,975 116,899 As at December 31, 2023 Related Up to 1 year to 2 year to Above parties 1 year 2 year 3 year 3 years Total Expected loss rate 2.13 % 4.56 % 41.29 % 77.39 % 94.34 % 13.53 % Gross carrying amount of trade receivables and contract assets applying simplified approach 306,636 476,215 72,327 29,615 47,869 932,662 Loss allowance of trade receivables and contract assets applying simplified approach 6,528 21,698 29,863 22,920 45,159 126,168 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (b) Credit risk (Continued) (ii) ECL measurement (Continued) Credit risk exposure (Continued) (1) Trade receivables and contract assets (Continued) Movements in the impairment loss allowance of trade receivables and contract assets applying simplified approach are as follows: For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year (97,243) (125,318) (116,899) Additions of impairment loss, net (71,061) (18,715) (42,102) Recovery of amounts written off previously — (9,980) — Write-off 42,986 37,156 33,402 Exchange difference — (42) (569) End of the year (125,318) (116,899) (126,168) (2) Impairment on other receivables is measured as either 12-month expected credit losses or lifetime expected credit loss, depending on whether there has been a significant increase in credit risk since initial recognition. If a significant increase in credit risk of a receivable has occurred since initial recognition, then impairment is measured as lifetime expected credit loss. The credit risk exposure of the other receivables was disclosed in Note 20(a). (3) The following table presents the credit risk exposure of the loans and advances to customers from virtual bank. As at December 31, 2022 2023 RMB’000 RMB’000 Gross carrying amount Financial assets measured at amortized cost 44 3,142 Financial assets measured at fair value through other comprehensive income 1,608,402 1,902,985 1,608,446 1,906,127 Expected credit loss provision — 61 Expected loss rate — 1.94 % 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (b) Credit risk (Continued) (ii) ECL measurement (Continued) Credit risk exposure (Continued) (3) Movements in the impairment loss allowance of loans and advances to customers applying three-stage approach are as follows: *1 For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year (711) (190) — (Additions)/Reversals of impairment loss (1,170) 190 (61) Write‑off 1,691 — — End of the year (190) — (61) *2 For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year (712) (1,962) (11,528) Additions of impairment loss (1,250) (10,616) (13,344) Write-off — 1,050 12,811 End of the year (1,962) (11,528) (12,061) 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (c) Liquidity risk The Group manages liquidity risk by maintaining adequate cash and cash equivalents and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Management believe that the Group’s current cash and cash equivalents and anticipated cash flows from operations, investment and financing activities will be sufficient to meet the Group’s anticipated working capital requirements and capital expenditures for the next 12 months from December 31, 2023. The liquidity risk of the foreign exchange swap is managed by aligning the critical terms of such swaps with the hedged items. The table below analyses the Group’s financial liabilities into relevant maturity grouping based on the remaining period at the end of each reporting period to the contractual maturity date. The amounts disclosed in the table are undiscounted contractual cash flows. As at December 31, 2022 Within 1 year 1 to 5 years Total RMB’000 RMB’000 RMB’000 Short‑term borrowings 294,461 — 294,461 Trade and other payables 1,236,571 139,387 1,375,958 - Including: lease liabilities 50,862 47,093 97,955 Other financial liabilities from virtual bank 89,327 — 89,327 Customer deposits 1,929,183 — 1,929,183 Non ‑ derivative financial liabilities 3,549,542 139,387 3,688,929 Gross settled (foreign currency swaps) - (inflow) (198,722) — (198,722) - outflow 208,290 — 208,290 Derivative financial liabilities 9,568 — 9,568 Total 3,559,110 139,387 3,698,497 5 Management of financial risk (Continued) 5.1 Financial risk factors (Continued) (c) Liquidity risk (Continued) As at December 31, 2023 Within 1 year 1 to 5 years Total RMB’000 RMB’000 RMB’000 Short‑term borrowings 257,007 — 257,007 Trade and other payables 1,292,054 30,143 1,322,197 - Including: lease liabilities 24,829 30,143 54,972 Other financial liabilities from virtual bank 54,373 — 54,373 Customer deposits 2,269,261 — 2,269,261 Non ‑ derivative financial liabilities 3,872,695 30,143 3,902,838 5.2 Capital management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to enhance shareholders’ value in the long-term. The Group monitors capital (including share capital and reserves) by regularly reviewing the capital structure. As a part of this review, the Company considers the cost of capital and the risks associated with the issued share capital. The Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or repurchase the Company’s shares. In the opinion of the Directors of the Company, the Group’s capital risk was low as at December 31, 2023. 5.3 Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. When an active market exists, such as an authorized securities exchange, the market value is the best reflection of the fair values of financial instruments. For financial instruments where there is no active market, fair value is determined using valuation techniques. The Group’s financial assets measured at fair value mainly include financial assets at fair value through profit or loss and financial assets measured at fair value through other comprehensive income. Determination of fair value and fair value hierarchy All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchies. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. 5 Management of financial risk (Continued) 5.3 Determination of fair value and fair value hierarchy (Continued) The levels of the fair value hierarchy are as follows: (a) Fair value is based on quoted prices (unadjusted) in active markets for identical assets or liabilities (“Level 1”); (b) Fair value is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices) (“Level 2”); and (c) Fair value is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs) (“Level 3”). The level of fair value calculation is determined by the lowest level input that is significant in the overall calculation. As such, the significance of the input should be considered from an overall perspective in the calculation of fair value. For Level 2 financial instruments, valuations are generally obtained from third party pricing services for identical or comparable assets, or through the use of valuation methodologies using observable market inputs, or recent quoted market prices. Valuation service providers typically gather, analyze and interpret information related to market transactions and other key valuation model inputs from multiple sources, and through the use of widely accepted internal valuation models, provide a theoretical quote on various securities. For Level 3 financial instruments, prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques. Determinations to classify fair value measurement within Level 3 of the valuation hierarchy are generally based on the significance of the unobservable factors to the overall fair value measurement, and valuation methodologies such as discounted cash flow models and other similar techniques. To determine the fair value of loans and advances to customers from virtual bank, loans are segregated into portfolios of similar characteristics. Fair values are estimated using discounted cash flow methodology incorporating a range of input assumptions including expected customer prepayment rates, new business interest rate estimates for similar loans. The fair value of loans reflects expected credit losses at the balance sheet date and the fair value effect of repricing between origination and the reporting date. For credit impaired loans, fair value is estimated by discounting the future cash flows over the period they are expected to be recovered. For assets and liabilities that are recognized at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The following tables provide the fair value measurement hierarchy of the Group’s financial assets and liabilities: As at December 31, 2022 Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000 Assets measured at fair value Financial assets at fair value through profit or loss (Note 22) — 690,627 — 690,627 Financial assets measured at fair value through other comprehensive income (Note 17) 442,935 — 1,611,606 2,054,541 Derivative financial assets (Note 32) — 56,363 — 56,363 Financial liabilities Derivative financial liabilities (Note 32) — 9,568 — 9,568 5 Management of financial risk (Continued) 5.3 Determination of fair value and fair value hierarchy (Continued) As at December 31, 2023 Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000 Assets measured at fair value Financial assets at fair value through profit or loss (Note 22) — 925,204 — 925,204 Financial assets measured at fair value through other comprehensive income (Note 17) 319,949 — 1,906,189 2,226,138 Derivative financial assets (Note 32) — 38,008 — 38,008 For the years ended December 31, 2022 and 2023, there were no transfers among different levels of fair values measurement. Movements of Level 3 financial instruments measured at fair value are as follows: For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year 5,676 1,107,340 1,611,606 Additions, net 1,103,460 506,620 295,287 Losses recognized in other comprehensive income (1,796) (1,678) (789) (Losses)/gain recognized in profit or loss — (676) 85 End of the year 1,107,340 1,611,606 1,906,189 Valuation inputs and relationships to fair value The following table summarises main quantitative and qualitative information about the significant unobservable inputs used in level 3 fair value measurements for loans and advances to customers from virtual bank measured at fair value through other comprehensive income. The impact of changes in unobservable inputs for other level 3 fair value measurement was immaterial. Unobservable inputs Range of inputs 2022 2023 Financial assets measured at fair value through other comprehensive income -Loans and advances to customers from virtual bank Discount rate 5.66% - 9.30 % 7.09% - 10.29 % Prepayment ratio 0.34% - 0.38 % 0.36 % 5 Management of financial risk (Continued) 5.3 Valuation inputs and relationships to fair value (Continued) The analysis below is performed for reasonably possible movements in unobservable inputs with all other variables held constant, showing the impact on the assets and other comprehensive income. Unobservable inputs Impact on the assets and other comprehensive income 2022 2023 -Loans and advances to customers from virtual bank Discount rate +5 % (5,941) (8,845) -5 % 5,975 8,926 Prepayment ratio +5 % (283) (315) -5 % 283 315 |
Segment information and revenue
Segment information and revenue | 12 Months Ended |
Dec. 31, 2023 | |
Segment information and revenue | |
Segment information and revenue | 6 Segment information and revenue 6.1 Description of segments and principal activities Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers (“CODM”), who are responsible for allocating resources and assessing performance of the operating segments and making strategic decisions. The Group’s chief operating decision makers have been identified as the executive directors of the Company, they review the Group’s internal reporting in order to assess performance, allocate resources, and determine the operating segments based on these reports. The Group has the following reportable segments for the year ended December 31, 2023: – Technology Solutions – Virtual Bank Business 6 Segment information and revenue (Continued) 6.1 Description of segments and principal activities (Continued) As the Group’s assets and liabilities are substantially located in the PRC, substantially all revenues are earned and substantially all expenses incurred in the PRC, no geographical segments are presented. Year ended December 31, 2021 Intersegment eliminations Virtual Bank Technology and Business Solutions adjustments Consolidated RMB’000 RMB’000 RMB’000 RMB’000 Revenue 34,320 4,098,734 (697) 4,132,357 Cost of revenue (37,748) (2,658,655) 697 (2,695,706) Gross profit (3,428) 1,440,079 — 1,436,651 Research and development expenses (33,192) (1,319,826) — (1,353,018) Selling and marketing expenses (38,042) (550,338) — (588,380) General and administrative expenses (99,796) (741,889) — (841,685) Net impairment losses on financial and contract assets (1,250) (70,979) — (72,229) Other income, gains or loss-net 91 13,830 — 13,921 Operating loss (175,617) (1,229,123) — (1,404,740) Finance income — 28,823 — 28,823 Finance costs (310) (76,327) — (76,637) Finance costs – net (310) (47,504) — (47,814) Share of gain of associate and joint venture — 9,946 — 9,946 Loss before income tax (175,927) (1,266,681) — (1,442,608) ASSETS Segment Assets 2,032,344 7,377,469 (1,041,585) 8,368,228 Goodwill — 289,161 — 289,161 Deferred income tax assets — 683,218 — 683,218 Total assets 2,032,344 8,349,848 (1,041,585) 9,340,607 LIABILITIES Segment Liabilities 1,459,125 4,097,004 (60,465) 5,495,664 Deferred income tax liabilities — 9,861 — 9,861 Total Liabilities 1,459,125 4,106,865 (60,465) 5,505,525 Other segment information Depreciation of property and equipment 14,195 121,780 — 135,975 Amortization of intangible assets 20,356 282,418 — 302,774 Additions of non-current assets except for goodwill and deferred income tax assets 44,107 201,940 — 246,047 6 Segment information and revenue (Continued) 6.1 Description of segments and principal activities (Continued) Year ended December 31, 2022 Intersegment eliminations Virtual Bank Technology and Business Solutions adjustments Consolidated RMB’000 RMB’000 RMB’000 RMB’000 Revenue 106,540 4,360,546 (3,084) 4,464,002 Cost of revenue (56,716) (2,775,354) 3,084 (2,828,986) Gross profit 49,824 1,585,192 — 1,635,016 Research and development expenses (18,276) (1,399,415) — (1,417,691) Selling and marketing expenses (41,408) (369,948) — (411,356) General and administrative expenses (114,546) (710,165) — (824,711) Net impairment losses on financial and contract assets (10,616) (23,023) — (33,639) Other income, gains or loss-net (544) 71,362 — 70,818 Operating loss (135,566) (845,997) — (981,563) Finance income — 14,709 — 14,709 Finance costs (354) (36,819) — (37,173) Finance costs – net (354) (22,110) — (22,464) Share of gain of associate and joint venture — 24,852 — 24,852 Impairment charges on associate — (10,998) — (10,998) Loss before income tax (135,920) (854,253) — (990,173) ASSETS Segment Assets 2,851,885 6,330,769 (1,355,392) 7,827,262 Goodwill — 289,161 — 289,161 Deferred income tax assets — 765,959 — 765,959 Total assets 2,851,885 7,385,889 (1,355,392) 8,882,382 LIABILITIES Segment Liabilities 2,093,126 3,521,957 (15,952) 5,599,131 Deferred income tax liabilities — 5,196 — 5,196 Total Liabilities 2,093,126 3,527,153 (15,952) 5,604,327 Other segment information Depreciation of property and equipment 13,191 106,118 — 119,309 Amortization of intangible assets 26,909 135,212 — 162,121 Additions of non-current assets except for goodwill and deferred income tax assets 45,737 98,740 — 144,477 6 Segment information and revenue (Continued) 6.1 Description of segments and principal activities (Continued) Year ended December 31, 2023 Intersegment eliminations Virtual Bank Technology and Business Solutions adjustments Consolidated RMB’000 RMB’000 RMB’000 RMB’000 Revenue 145,917 3,533,276 (11,685) 3,667,508 Cost of revenue (134,214) (2,195,574) 11,685 (2,318,103) Gross profit 11,703 1,337,702 — 1,349,405 Research and development expenses — (955,201) — (955,201) Selling and marketing expenses (33,739) (241,612) — (275,351) General and administrative expenses (129,842) (375,128) — (504,970) Net impairment losses on financial and contract assets (13,406) (40,544) — (53,950) Other income, gains or loss-net 2,672 69,183 — 71,855 Operating loss (162,612) (205,600) — (368,212) Finance income — 29,580 — 29,580 Finance costs (446) (20,086) — (20,532) Finance costs – net (446) 9,494 — 9,048 Share of gain of associate and joint venture — 4,607 — 4,607 Impairment charges on associate — (7,157) — (7,157) Loss before income tax (163,058) (198,656) — (361,714) ASSETS Segment Assets 2,994,772 5,399,653 (1,383,504) 7,010,921 Goodwill — 289,161 — 289,161 Deferred income tax assets — 768,276 — 768,276 Total assets 2,994,772 6,457,090 (1,383,504) 8,068,358 LIABILITIES Segment Liabilities 2,388,056 2,754,711 (24,280) 5,118,487 Deferred income tax liabilities — 2,079 — 2,079 Total Liabilities 2,388,056 2,756,790 (24,280) 5,120,566 Other segment information Depreciation of property and equipment 6,179 68,729 — 74,908 Amortization of intangible assets 34,687 91,746 — 126,433 Additions of non-current assets except for goodwill and deferred income tax assets 23,549 35,532 — 59,081 6 Segment information and revenue (Continued) 6.2 Revenue (a) Disaggregation of revenue from contracts with customers For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 - Technology Solutions Implementation 733,648 861,820 834,620 Transaction based and support revenue - Operation support services 1,097,719 1,140,727 861,056 - Business origination services 450,597 383,723 132,112 - Risk management services 534,071 414,849 320,462 - Cloud services platform 1,050,179 1,315,819 1,245,952 - Post‑implementation support services 49,447 50,983 52,012 - Others 182,376 189,541 75,377 4,098,037 4,357,462 3,521,591 6 Segment information and revenue (Continued) 6.2 Revenue (Continued) (a) Disaggregation of revenue from contracts with customers (Continued) Disaggregation of revenue by timing of transfer of services over time or at a point in time is set out below: At a point in time Over time Total Year ended December 31, 2021 Implementation — 733,648 733,648 Transaction based and support revenue - Operation support services 399,523 698,196 1,097,719 - Business origination services 450,597 — 450,597 - Risk management services 534,071 — 534,071 - Cloud services platform — 1,050,179 1,050,179 - Post‑implementation support services — 49,447 49,447 - Others 181,004 1,372 182,376 1,565,195 2,532,842 4,098,037 At a point in time Over time Total Year ended December 31, 2022 Implementation 36,266 825,554 861,820 Transaction based and support revenue - Operation support services 376,784 763,943 1,140,727 - Business origination services 383,723 — 383,723 - Risk management services 414,849 — 414,849 - Cloud services platform — 1,315,819 1,315,819 - Post-implementation support services — 50,983 50,983 - Others 189,366 175 189,541 1,400,988 2,956,474 4,357,462 6 Segment information and revenue (Continued) 6.2 Revenue (Continued) (a) Disaggregation of revenue from contracts with customers (Continued) At a point in time Over time Total Year ended December 31, 2023 Implementation 37,804 796,816 834,620 Transaction based and support revenue - Operation support services 240,366 620,690 861,056 - Business origination services 132,112 — 132,112 - Risk management services 320,462 — 320,462 - Cloud services platform — 1,245,952 1,245,952 - Post-implementation support services — 52,012 52,012 - Others 75,285 92 75,377 806,029 2,715,562 3,521,591 During the years ended December 31, 2021, 2022 and 2023, the Group mainly operated in the PRC and most of the revenue were generated in PRC. The major customers which contributed more than 10% of the total revenue of the Group for the years ended December 31, 2021, 2022 and 2023 are listed as below: For the year ended December 31, 2021 2022 2023 % of total % of total % of total revenue revenue revenue Ping An Group and its subsidiaries 56.03 % 56.60 % 57.02 % Lufax Holding Ltd (“Lufax” and its subsidiaries) 11.15 % 10.29 % 7.46 % 67.18 % 66.89 % 64.48 % (b) Interest and commission income For the year ended December 31, 2021 2022 2023 RMB ’ 000 RMB ’ 000 RMB ’ 000 – Interest and commission income 34,320 106,540 145,917 6 Segment information and revenue (Continued) 6.2 Revenue (Continued) (c) Contract assets and liabilities The Group has recognized the following revenue-related contract assets and liabilities: At December 31, 2022 2023 RMB’000 RMB’000 Contract assets -Implementation 163,769 137,566 -Transaction based and support 18,711 15,638 - Business origination services 1,404 — - Operation support services 12,085 12,149 - Post implementation support services 5,222 3,489 182,480 153,204 Less: Impairment loss allowance -Implementation (52,385) (50,712) -Transaction based and support (7,467) (6,667) - Operation support services (4,779) (4,750) - Post implementation support services (2,688) (1,917) (59,852) (57,379) 122,628 95,825 At December 31, 2022 2023 RMB’000 RMB’000 Contract liabilities -Implementation 42,014 37,427 -Transaction based and support 144,613 118,262 -Post implementation support services 21,679 10,609 -Risk management services 20,997 18,801 -Operation support services 87,562 69,825 -Others 14,375 19,027 186,627 155,689 Less: Non‑current contract liabilities (19,977) (17,126) 166,650 138,563 6 Segment information and revenue (Continued) 6.2 Revenue (Continued) (c) Contract assets and liabilities (Continued) During the years ended December 31, 2021, 2022 and 2023, there were no material cumulative catch-up adjustments to revenue that affect the corresponding contract asset or contract liability, including adjustments arising from a change in the measure of progress, a change in an estimate of the transaction price or a contract modification, there were also no revenue recognized in the reporting year from performance obligations satisfied (or partially satisfied) in previous years. (i) For the year ended Revenue recognized in relation to contract liabilities December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Revenue recognized that was included in the contract liability balance at the beginning of the year 138,547 153,844 166,650 (ii) Remaining performance obligations of long-term contracts Remaining performance obligations of long-term contracts For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Aggregate amount of the transaction price allocated to long ‑ term contracts that are partially or fully unsatisfied at the end of each year Expected to be recognized within one year 455,294 670,991 386,278 Expected to be recognized in one to two years 89,762 237,126 112,605 Expected to be recognized in two to three years 33,937 99,208 38,900 Expected to be recognized beyond three years 31,523 44,365 13,992 610,516 1,051,690 551,775 The remaining performance obligations disclosed above represent implementation, post-implementation support services, risk management services and operation support services that have an original contractual term of more than one year. Moreover, the amount disclosed above does not include variable consideration which is constrained. |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2023 | |
Expenses by nature | |
Expenses by nature | 7 Expenses by nature For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Technology service fees 2,021,238 2,261,498 1,689,549 Employee benefit expenses (Note 8) 1,629,375 1,601,989 1,302,848 Outsourcing labor costs 437,081 528,582 426,148 Amortization of intangible assets (Note 14) 302,774 162,121 126,433 Depreciation of property and equipment (Note 13) 135,975 119,309 74,908 Purchase costs of products 176,224 183,956 60,902 Business origination fees to channel partners 276,966 251,427 53,419 Travelling expenses 76,987 38,873 40,633 Marketing and advertising fees 110,775 50,246 38,183 Professional service fees 48,001 50,596 32,564 Auditor’s remuneration —Audit related 14,657 16,501 17,961 —Non-audit 1,957 3,150 1,693 Impairment loss of intangible assets (Note 14) 5,646 10,208 5,851 Listing expenses 12,467 69,857 — Others 228,666 134,431 182,533 Total cost of revenue, research and development expenses, selling and marketing expenses, general and administrative expenses 5,478,789 5,482,744 4,053,625 For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Research and development costs - Employee benefit expenses 514,456 469,320 351,475 - Technology service fees 859,324 946,700 597,244 - Amortization of intangible assets 3,396 6,282 4,438 - Depreciation of property and equipment 11,182 14,168 7,023 - Impairment loss of intangible assets 3,747 3,837 2,004 - Others 23,200 22,334 14,726 Amounts incurred 1,415,305 1,462,641 976,910 Less: capitalized - Employee benefit expenses (45,016) (19,827) (3,892) - Technology service fees (17,271) (25,123) (17,817) (62,287) (44,950) (21,709) 1,353,018 1,417,691 955,201 |
Employee benefit expenses
Employee benefit expenses | 12 Months Ended |
Dec. 31, 2023 | |
Employee benefit expenses | |
Employee benefit expenses | 8 Employee benefit expenses For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Wages and salaries 1,276,205 1,235,714 971,060 Welfare and other benefits 330,552 353,099 319,671 Share‑based payments (Note 27) 22,618 13,176 12,117 1,629,375 1,601,989 1,302,848 |
Other income, gains or loss - n
Other income, gains or loss - net | 12 Months Ended |
Dec. 31, 2023 | |
Other income, gains or loss - net | |
Other income, gains or loss - net | 9 Other income, gains or loss - net For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Net foreign exchange gain/ (loss) 77,143 (312,843) (11,171) Government grants and tax rebates (Note a) 51,080 58,013 41,454 Net gain on financial assets at fair value through profit or loss 45,644 30,687 20,007 Loss on disposal of property and equipment and intangible asset (266) (6,198) (6,058) Remeasurement of redemption liability (Note 28(ii)) — 37,874 — Guarantee gain, net 10,757 — — Net (loss)/gain on derivatives (169,545) 262,769 30,592 Others (892) 516 (2,969) 13,921 70,818 71,855 (a) Government grants and tax rebates Government grants and tax rebates were related to income. There were no unfulfilled conditions or contingencies related to these subsidies. For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Government grants 28,871 27,421 23,922 - Technology development incentives 14,391 10,493 12,906 - Operation subsidies 14,480 16,928 11,016 Tax rebates 22,209 30,592 17,532 51,080 58,013 41,454 |
Finance costs - net
Finance costs - net | 12 Months Ended |
Dec. 31, 2023 | |
Finance costs - net | |
Finance costs - net | 10 Finance costs — net For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Finance income Interest income on bank deposits 28,823 14,709 29,580 Finance costs Interest expense on borrowings (56,534) (17,303) (12,073) Interest expense on lease liabilities (5,803) (7,578) (3,448) Interest expense on redemption liability (12,406) (10,287) (4,014) Bank charges (1,894) (2,005) (997) (76,637) (37,173) (20,532) (47,814) (22,464) 9,048 |
Income tax benefit_(expense)
Income tax benefit/(expense) | 12 Months Ended |
Dec. 31, 2023 | |
Income tax benefit/(expense) | |
Income tax benefit/(expense) | 11 Income tax benefit/(expense) The income tax benefit/(expense) of the Group for the years ended December 31, 2021, 2022 and 2023 is analyzed as follows: For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Current income tax (16,780) (25,259) (15,196) Deferred income tax 128,875 87,406 5,434 Income tax benefit/ (expense) 112,095 62,147 (9,762) The tax on the Group’s loss before income tax differs from the theoretical amount that would arise using the statutory tax rate applicable to loss of the consolidated entities as follows: For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Loss before income tax 1,442,608 990,173 361,714 Tax calculated at PRC statutory income tax rate of 25% 360,652 247,543 90,429 Differential of income tax rates applicable to subsidiaries (161,199) (119,211) (36,590) Expense not deductible for tax purposes (10,169) (5,659) (3,863) Incomes not subject to tax 1,732 542 191 Tax losses and temporary differences for which no deferred income tax asset was recognized (87,237) (73,690) (73,942) Derecognition of deferred tax assets on tax losses (23) — — Additional deductible allowance for research and development expenses 8,255 10,164 12,474 Utilization of previously unrecognized tax losses 84 2,458 1,539 Income tax benefit/ (expense) 112,095 62,147 (9,762) 11 Income tax benefit/(expense) (Continued) The unused tax losses for the years ended December 31, 2022 and 2023 is analyzed as follows: At December 31, 2022 2023 RMB’000 RMB’000 Unused tax losses for which no deferred tax asset has been recognized 2,248,748 2,695,910 The expiry dates of the unused tax losses not recognized as deferred tax assets for the years ended December 31, 2022 and 2023 are listed as follows: At December 31, 2022 2023 RMB’000 RMB’000 Year 2023 118,796 — Year 2024 419,866 419,866 Year 2025 83,576 83,576 Year 2026 208,346 208,346 Year 2027 67,745 67,745 Year 2028 1,826 113,129 Year 2029 7,149 7,149 Year 2030 8,049 8,049 Year 2031 56,195 56,195 Year 2032 122,036 122,036 Year 2033 — 220,273 11 Income tax benefit/(expense) (Continued) (a) PRC Enterprise Income Tax (“EIT”) The income tax provision of the Group in respect of operations in Mainland China has been calculated at the tax rate of 25%, unless preferential tax rates were applicable. Shenzhen OneConnect, Vantage Point Technology, BER Technology, OneConnect Cloud Technology, Shenzhen OneConnect Technology and Shenzhen CA as subsidiaries of the Group, were established in mainland China. They were eligible for preferential tax policies applicable for the qualification of “High and New Technology Enterprise” and were entitled to a preferential income tax rate of 15%. Shenzhen OneConnect Technology and OneConnect Cloud Technology as subsidiaries of the Group, were established in the Shenzhen Qianhai Shenzhen-Hong Kong Cooperation Zone and accordingly is entitled to a reduced income tax rate of 15%. (b) Cayman Islands Income Tax The Company is incorporated under the laws of the Cayman Islands as an exempted company with limited liability under the Companies Law of the Cayman Islands and is not subject to Cayman Islands income tax. (c) Hong Kong Income Tax The Hong Kong income tax rate is 16.5%. No Hong Kong profits tax was provided for as there was no estimated assessable profit that was subject to Hong Kong profits tax during the years ended December 31, 2021, 2022 and 2023. (d) Singapore Income Tax The Singapore income tax rate is 17%. No Singapore profits tax was provided for as there was no estimated taxable profit that was subject to Singapore profits tax during the years ended December 31, 2021, 2022 and 2023. (e) Indonesia Income Tax The income tax provision in respect of the Group’s operations in Indonesia was calculated at the tax rate of 22% on the taxable profits for the year ended December 31, 2021, 2022 and 2023. (f) Malaysia Income Tax The Malaysia income tax rate is 24%. No Malaysia profits tax was provided for as there was no estimated taxable profit that was subject to Malaysia profits tax during the years ended December 31, 2021, 2022 and 2023. (g) Philippines Income Tax The Philippines income tax rate is 25%. No Philippines profits tax was provided for as there was no estimated taxable profit that was subject to Philippines profits tax during the years ended December 31, 2021, 2022 and 2023. (h) PRC Withholding Tax According to the EIT Law, distribution of profits earned by PRC companies since January 1, 2008 to overseas investors is subject to withholding tax of 5% or 10%, depending on the region of incorporation of the overseas investor, upon the distribution of profits to overseas-incorporated immediate holding companies. The Group plans to indefinitely reinvested undistributed earnings earned from its PRC subsidiaries in its operations in PRC. Therefore, no withholding income tax for undistributed earnings of its subsidiaries were provided as at December 31, 2021, 2022 and 2023 respectively. |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2023 | |
Loss per share | |
Loss per share | 12 Loss per share Year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Net loss for the year attributable to owners of the Company (1,281,699) (872,274) (362,715) Weighted average number of ordinary shares in issue (in’000 shares) 1,108,291 1,094,748 1,089,589 Basic loss per share (RMB yuan) (1.16) (0.80) (0.33) Diluted loss per share (RMB yuan) (1.16) (0.80) (0.33) Basic loss per ADS (RMB yuan) (Note) (34.69) (23.90) (9.99) Diluted loss per ADS (RMB yuan) (Note) (34.69) (23.90) (9.99) Note: One ADS represent thirty ordinary shares of the Company. Basic loss per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares in issue during the years ended December 31, 2021, 2022 and 2023. Shares held for share incentive scheme purpose have been treated as treasury shares. Accordingly, for purpose of calculation of loss per share, the issued and outstanding number of ordinary shares as at December 31, 2021, 2022 and 2023, taking into account the shares held for share incentive scheme purpose, were 1,109,938,973 shares shares shares The effects of all outstanding share options granted under the Share Option Scheme and Restricted Share Units Scheme (Note 27) for the years ended December 31, 2021, 2022 and 2023, have been excluded from the computation of diluted loss per share as their effects would be anti-dilutive. Accordingly, dilutive loss per share for the years ended December 31, 2021, 2022 and 2023 were the same as basic loss per share for the years. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment. | |
Property and equipment | 13 Property and equipment Office and telecommunication Right ‑ of ‑ use Leasehold equipment properties improvements Total RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2022 Cost 126,626 461,605 108,805 697,036 Accumulated depreciation (65,102) (316,267) (65,625) (446,994) Exchange difference (3,076) (1,337) (1,217) (5,630) Net book amount 58,448 144,001 41,963 244,412 Year ended December 31, 2022 Opening net book amount 58,448 144,001 41,963 244,412 Additions 15,481 76,534 6,585 98,600 Disposals, net (9,467) (57,952) (8,292) (75,711) Depreciation charge (23,027) (75,519) (20,763) (119,309) Exchange difference 420 2,510 479 3,409 Closing net book amount 41,855 89,574 19,972 151,401 As at December 31, 2022 Cost 120,373 358,173 115,390 593,936 Accumulated depreciation (75,862) (269,772) (94,680) (440,314) Exchange difference (2,656) 1,173 (738) (2,221) Net book amount 41,855 89,574 19,972 151,401 Year ended December 31, 2023 Opening net book amount 41,855 89,574 19,972 151,401 Additions 2,987 21,612 2,994 27,593 Disposals, net (877) (17,718) (696) (19,291) Depreciation charge (18,761) (45,082) (11,065) (74,908) Exchange difference 42 186 53 281 Closing net book amount 25,246 48,572 11,258 85,076 As at December 31, 2023 Cost 111,470 303,092 118,384 532,946 Accumulated depreciation (83,610) (255,879) (106,441) (445,930) Exchange difference (2,614) 1,359 (685) (1,940) Net book amount 25,246 48,572 11,258 85,076 13 Property and equipment (Continued) During the different periods, the approximate depreciation which were charged to cost of revenue, research and development expenses, selling and marketing expenses and general and administrative expenses were as follows: Year ended December 31, 2022 2023 RMB’000 RMB’000 Cost of revenue 2,750 6,747 Research and development expenses 14,168 7,023 Selling and marketing expenses 4,814 4,306 General and administrative expenses 97,577 56,832 119,309 74,908 Depreciation of office and telecommunication equipment is allocated to different functional expenses based on usage of equipment by different functional divisions. Right-of-use properties and leasehold improvement are primarily related to business office buildings leased by the Group and used as corporate headquarters. For leased business office buildings which are for general and administrative use, the depreciation of the related right-of-use properties and leasehold improvement is charged to general and administrative expense. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets. | |
Intangible assets | 14 Intangible assets Application and platform Contributed Development by Ping Developed Purchased costs in Business An Group internally Acquired Software progress Goodwill license Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Year ended December 31, 2022 Opening net book amount — 226,943 2,231 27,041 45,389 289,161 92,341 4,088 687,194 Additions — — — 927 44,950 — — — 45,877 Write-off — (6,371) — — (3,837) — — — (10,208) Transfer — 58,528 — — (58,528) — — — — Amortization — (110,801) (2,231) (15,729) — — (31,315) (2,045) (162,121) Exchange differences — 7,907 — 582 1,205 — — — 9,694 Closing net book amount — 176,206 — 12,821 29,179 289,161 61,026 2,043 570,436 As at December 31, 2022 Cost 690,910 773,332 61,078 149,734 28,699 289,161 155,492 80,263 2,228,669 Accumulated amortization (690,910) (602,065) (61,078) (136,885) — — (94,466) (78,220) (1,663,624) Exchange differences — 4,939 — (28) 480 — — — 5,391 Net book amount — 176,206 — 12,821 29,179 289,161 61,026 2,043 570,436 Application and platform Contributed Development by Ping Developed Purchased costs in Business An Group internally Acquired Software progress Goodwill license Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Year ended December 31, 2023 Opening net book amount — 176,206 — 12,821 29,179 289,161 61,026 2,043 570,436 Additions — — — 9,779 21,709 — — — 31,488 Write-off — (1,400) — — (4,451) — — — (5,851) Transfer — 30,764 — — (30,764) — — — — Amortization — (77,975) — (15,509) — — (30,906) (2,043) (126,433) Exchange differences — 1,265 — 138 328 — — — 1,731 Closing net book amount — 128,860 — 7,229 16,001 289,161 30,120 — 471,371 As at December 31, 2023 Cost 690,910 802,696 61,078 159,513 15,193 289,161 155,492 80,263 2,254,306 Accumulated amortization (690,910) (680,040) (61,078) (152,394) — — (125,372) (80,263) (1,790,057) Exchange differences — 6,204 — 110 808 — — — 7,122 Net book amount — 128,860 — 7,229 16,001 289,161 30,120 — 471,371 14 Intangible assets (Continued) The Group assesses at each reporting date whether there is an indication that intangible assets may be impaired. During the year ended December 31, 2023, impairment charge of RMB3,847,000 and RMB2,004,000 has been charged to cost of revenue and research and development expenses, respectively. The impairment charge was charged against development costs for certain intangible assets developed internally, following a decision to reduce the output of certain products in 2023. During the years ended December 31, 2021, 2022 and 2023, the amount of amortization charged to cost of revenue, research and development expenses and general and administrative expenses are as follows: Year ended December 31, Amortization of intangible assets 2021 2022 2023 RMB’000 RMB’000 RMB’000 Cost of revenue 297,406 146,466 114,512 Research and development expenses 3,396 6,282 4,438 General and administrative expenses 1,972 9,373 7,483 302,774 162,121 126,433 (a) Impairment tests for goodwill Goodwill arises from the Group’s acquisitions of Vantage Point Technology on July 31, 2018, BER Technology on June 30, 2019, and View Foundation on August 30, 2019. The goodwill of the Group is attributable to the acquired workforce and synergies expected to be derived from combining with the operations of the Group. During the year ended December 31, 2022 and 2023, the goodwill is regarded as attributable to the CGU of Technology Solutions segment. The Group carries out its impairment testing on goodwill by comparing the recoverable amounts of groups of CGUs to their carrying amounts. The management did the value-in-use calculations to determine the recoverable amounts. Value-in-use is calculated based on discounted cash flows. The discounted cash flows calculations of group of CGUs use cash flow projection developed based on financial budgets approved by management of the Group covering a five-year period, after considering the current and historical business performance, the future business plan and market data. Cash flows beyond the five-year period are extrapolated using the estimated long term growth rates stated below. The significant assumptions used for value-in-use calculations are as follows: For the year ended December 31, 2022 2023 RMB’000 RMB’000 Revenue growth rate -15%-13 % -10%-13 % Profit margin -15%-10 % -2%-14 % Long term growth rate 2 % 2 % Pre-tax discount rate 17.50 % 19.73 % Recoverable amount of the CGU exceeding its carrying amount (RMB’000) 781,499 1,153,821 14 Intangible assets (Continued) (a) Impairment tests for goodwill (Continued) The following table sets forth the impact of reasonable possible changes in absolute value in each of the significant assumptions, with all other variables held constant, of goodwill impairment testing at the dates indicated. Possible changes of significant assumptions Recoverable amount of the CGU exceeding its carrying amount Year ended December 31, 2022 2023 RMB ’ 000 RMB ’ 000 Revenue growth rate decrease by 5% 373,790 597,067 Profit margin decrease by 1% 459,556 886,786 Long term growth rate decrease by 1% 669,058 1,039,101 Pre-tax discount rate increase by 1% 616,950 989,962 |
Investments accounted for using
Investments accounted for using the equity method | 12 Months Ended |
Dec. 31, 2023 | |
Investments accounted for using the equity method | |
Investments accounted for using the equity method | 15 Investments accounted for using the equity method (a) Investment in associate For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 At beginning of year 172,757 184,907 199,200 Share of gain of associate 12,150 25,291 7,157 Impairment charges on associate — (10,998) (7,157) Disposal — — (199,200) At end of the year 184,907 199,200 — (i) On March 28, 2017, Shanghai OneConnect set up Pingan Puhui Lixin Asset Management Co., Ltd. (“Puhui Lixin”) with Pingan Puhui Enterprise Management Co., Ltd. (“Puhui Management”), a subsidiary of Lufax, by investing a capital amount of RMB 40,000,000 . In January 2019, Shanghai OneConnect made an additional capital injection of RMB 100,000,000 into Puhui Lixin. On February 20, 2020, Puhui Management made another additional capital injection of RMB 40,000,000 into Puhui Lixin. Accordingly, the Group’s equity interests in the investee were diluted from 35 % to 31.82 %, resulting in a dilution gain amounting to RMB 2,511,000 . In March 2020, Shanghai OneConnect made an additional capital injection of RMB 60,000,000 into Puhui Lixin, and the Group’s equity interests in the investee were increased to 40 %. On November 24, 2022, Shanghai OneConnect entered into the Equity Transfer Agreement with Puhui Management, pursuant to which Shanghai OneConnect conditionally agreed to sell, and Puhui Management conditionally agreed to purchase, the Group’s 40% equity interest in Puhui Lixin at a consideration of RMB199,200,000. Upon the completion, Shanghai OneConnect will no longer hold any equity interest in Puhui Lixin. The transaction has been approved by the extraordinary general meeting and completed in 2023. 15 Investments accounted for using the equity method (Continued) (a) Investment in associate (Continued) (ii) Summarised financial information for associate Summarised balance sheet As at December 31, 2021 2022 2023 RMB ’ 000 RMB ’ 000 RMB ’ 000 Total assets 1,075,852 1,686,575 * Total liabilities (682,979) (1,230,475) * Net assets 392,873 456,100 * Summarised income statement For the year ended December 31, 2021 2022 2023 RMB ’ 000 RMB ’ 000 RMB ’ 000 Operating income 96,372 144,762 * Profit or loss from continuing operations 30,375 63,228 * Group ’ 40 % 40 % * Group’s share in net assets 157,149 182,440 * Goodwill 27,758 27,758 * 184,907 210,198 * Less: impairment charges on associate — (10,998) * Carrying amount 184,907 199,200 * *2023 information not presented as the associate was disposed of as described above. (b) Investment in joint venture For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 At beginning of year 2,976 439 — Additions — — 2,550 Share of losses of joint venture (2,204) (439) (2,550) Exchange difference (333) — — At end of the year 439 — — 15 Investments accounted for using the equity method (Continued) (b) Investment in joint venture (Continued) On August 23, 2019, the Group entered into an investment in SBI OneConnect Japan Co., Ltd. (“SBI Japan”) with SBI Holdings, Inc., (“SBI”) by investing a capital of RMB4,321,000 (JPY65,100,000), and held the equity interest as to 31%. The Group shares control with SBI and accounts for the investment as a joint venture. In October 2021, the Company disposed of the investment to SBI at no consideration as it was fully impaired considering accumulated losses. The Group entered into an agreement of setting up Financial Open Portal (Guangxi) Cross-border Financial Digital Co., Ltd. (“Open Portal Guangxi”) with Digital Guangxi Group Co., Ltd. (“Digital Guangxi”) on April 10, 2020. The Group made a capital injection of RMB2,040,000 in 2020 and additional capital injection of RMB2,550,000 in 2023. The Group and Digital Guangxi owned the equity interest in Open Portal Guangxi as to 51% and 49%, respectively. The Group shares control with Digital Guangxi and accounts for the investment as a joint venture. The decisions on major operational and financial activities require the unanimous consent of the Group and Digital Guangxi pursuant to the provisions of the article of association of Open Portal Guangxi. |
Financial instruments by catego
Financial instruments by category | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments by category | |
Financial instruments by category | 16 Financial instruments by category The Group holds the following financial instruments: As at December 31, Note 2022 2023 RMB’000 RMB’000 Financial assets Financial assets at amortized cost - Trade receivables 19 940,989 710,669 - Prepayments and other receivables (excluding non-financial asset items) 20 816,179 661,123 - Financial assets measured at amortized cost from virtual bank 21 44 3,081 - Restricted cash and time deposits over three months 23 343,814 447,564 - Cash and cash equivalents 24 1,907,776 1,379,473 Financial assets measured at fair value through other comprehensive income (FVOCI) 17 2,054,541 2,226,138 Financial assets at fair value through profit or loss (FVPL) 22 690,627 925,204 Derivative financial asset - Held at FVPL 32 56,363 38,008 Total 6,810,333 6,391,260 Financial liabilities Liabilities at amortized cost - Trade and other payables (excluding non-financial liability items) 28 1,355,329 1,318,449 - Short-term borrowings 29 289,062 251,732 - Customer deposits 30 1,929,183 2,261,214 - Other financial liabilities from virtual bank 31 89,327 54,373 Derivative financial liability - Held at FVPL 32 9,568 — Total 3,672,469 3,885,768 |
Financial assets measured at fa
Financial assets measured at fair value through other comprehensive income | 12 Months Ended |
Dec. 31, 2023 | |
Financial assets measured at fair value through other comprehensive income. | |
Financial assets measured at fair value through other comprehensive income | 17 Financial assets measured at fair value through other comprehensive income As at December 31, 2022 2023 RMB’000 RMB’000 Loans and advances to customers 1,608,402 1,902,985 Equity securities (Note a) 3,204 3,204 Debt securities 442,935 319,949 2,054,541 2,226,138 Less: Non-current financial asset measured at fair value through other comprehensive income (821,110) (1,372,685) 1,233,431 853,453 (a) On August 4, 2016, the Group acquired 5% equity interest in Fujian Exchange Settlement Centre Co., Ltd. ( 福建交易場所清算中心股份有限公司 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 18 Leases (a) Amounts recognized in the consolidated balance sheet As at December 31, 2022 2023 RMB’000 RMB’000 Right ‑ of ‑ use assets (Note 13) - Properties 89,574 48,572 Lease liabilities (Note 28) - Non current 44,553 28,283 - Current 47,030 22,941 91,583 51,224 Additions to the right-of-use assets during the years ended December 31, 2022 and 2023 were RMB76,534,000 and RMB21,612,000, respectively. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on December 31, 2022 and 2023 was 4.79% and 4.26%. 18 Leases (Continued) (b) Amounts recognized in the consolidated statement of profit or loss For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Depreciation charge of right‑of‑use assets 88,974 75,519 45,082 Interest expenses (included in finance cost) 5,803 7,578 3,448 94,777 83,097 48,530 The total cash outflow for leases in 2021, 2022 and 2023 were RMB97,551,000, RMB79,618,000 and RMB67,180,000, respectively. Expenses recognized in relation to short-term leases for the years ended December 31, 2021, 2022 and 2023 amounted to RMB1,412,000, RMB2,884,000, and RMB6,258,000, respectively. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2023 | |
Trade receivables | |
Trade receivables | 19 Trade receivables As at December 31, 2022 2023 RMB’000 RMB’000 Trade receivables 998,036 779,458 Less: impairment loss allowance (Note 5.1(b)) (57,047) (68,789) 940,989 710,669 Trade receivables and their aging analysis, based on recognition date, are as follows: As at December 31, 2022 2023 RMB ’ 000 RMB ’ 000 Up to 1 year 932,479 694,157 1 to 2 years 42,752 55,187 2 to 3 years 13,857 21,103 Above 3 years 8,948 9,011 998,036 779,458 |
Prepayments and other receivabl
Prepayments and other receivables | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other receivables | |
Prepayments and other receivables | 20 Prepayments and other receivables As at December 31, 2022 2023 RMB’000 RMB’000 Deposit receivable * 776,481 625,371 Value-added-tax deductible 143,338 188,501 Advance to suppliers 71,755 49,492 Advance to staff 47,332 13,238 Receivables for value-added-tax paid on behalf of wealth management products 455 — Others 46,519 41,471 Less: impairment loss allowance (7,276) (5,719) 1,078,604 912,354 Less: Non-current portion of other receivables — (6,663) 1,078,604 905,691 * Deposit receivable mainly represents deposit paid to the Group’s service vendors according to the contractual agreements and such receivables will contractually be repaid within one year. (a) Movements in the impairment loss allowance of prepayments and other receivables are as follows: For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year (3,349) (2,968) (7,276) Reversals/ (Additions) 2 (4,308) 1,557 Write-off 365 — — Exchange differences 14 — — End of the year (2,968) (7,276) (5,719) |
Financial assets measured at am
Financial assets measured at amortized cost from virtual bank | 12 Months Ended |
Dec. 31, 2023 | |
Financial assets measured at amortized cost from virtual bank | |
Financial assets measured at amortized cost from virtual bank | 21 Financial assets measured at amortized cost from virtual bank As at December 31, 2022 2023 RMB’000 RMB’000 Loans and advances to customers 44 3,142 Less: expected credit loss provision — (61) 44 3,081 The balance represents financial assets measured at amortized cost carried out by OneConnect Bank, a wholly owned subsidiary from the Group, since 2020. |
Financial assets at fair value
Financial assets at fair value through profit or loss | 12 Months Ended |
Dec. 31, 2023 | |
Financial assets at fair value through profit or loss. | |
Financial assets at fair value through profit or loss | 22 Financial assets at fair value through profit or loss As at December 31, 2022 2023 RMB’000 RMB’000 Wealth management products 690,627 925,204 As at December 31, 2022 and 2023, out of the wealth management products which the Group invested in, RMB690,627,000 and RMB532,147,000 were managed by subsidiaries of Ping An Group which are redeemable upon request by the holders, respectively. |
Restricted cash and time deposi
Restricted cash and time deposits over three months | 12 Months Ended |
Dec. 31, 2023 | |
Restricted cash and time deposits over three months | |
Restricted cash and time deposits over three months | 23 Restricted cash and time deposits over three months As at December 31, 2022 2023 RMB’000 RMB’000 Restricted bank deposits 198,320 39,005 Accrued interests 1,238 446 Time deposits with initial terms over three months 144,256 413,432 343,814 452,883 Less: Non-current restricted cash — (5,319) 343,814 447,564 As at December 31, 2022, RMB192,989,000 (USD27,710,000) were pledged for currency swaps, and RMB5,331,000 was pledged for business guarantee. As at December 31, 2023, RMB22,594,000 (USD3,190,000) were pledged for currency swaps, and RMB16,412,000 was pledged for business guarantee. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents. | |
Cash and cash equivalents | 24 Cash and cash equivalents As at December 31, 2022 2023 RMB’000 RMB’000 Cash on hand 12 12 Cash at central bank 214,768 134,486 Cash at banks 1,692,996 1,244,975 1,907,776 1,379,473 At December 31, 2022 2023 RMB’000 RMB’000 USD 313,559 771,502 RMB 1,045,135 379,629 HKD 530,861 210,492 SGD 13,821 5,796 IDR 1,680 941 MYR 1,585 4 PHP 1,135 11,109 1,907,776 1,379,473 |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2023 | |
Share capital | |
Share capital | 25 Share capital Number of shares USD Authorized Ordinary shares of USD0.00001 at December 31, 2021, 2022 and 2023 5,000,000,000 50,000 Equivalent Number of shares USD to RMB Issued Ordinary shares of USD0.00001 at December 31, 2017 900,000,000 9,000 59,838 Newly issued ordinary shares (Note a) 99,999,999 1,000 6,331 Ordinary shares of USD0.00001 at December 31, 2018 999,999,999 10,000 66,169 Newly issued ordinary shares (Note b) 3,720,665 37 257 Newly issued ordinary shares upon initial public offering (Note c) 93,600,000 936 6,549 Ordinary shares of USD0.00001 at December 31, 2019 1,097,320,664 10,973 72,975 Newly issued ordinary shares (Note d) 72,660,000 727 5,033 Surrendered ordinary shares (Note e) (3) — — Ordinary shares of USD0.00001 at December 31, 2020 1,169,980,661 11,700 78,008 Surrendered ordinary shares (Note f) (8) — — Ordinary shares of USD0.00001 at December 31, 2021 and 2022 and 2023 1,169,980,653 11,700 78,008 (a) The Company completed its Round A investments (“Round A Investments”) in April 2018 with 12 investors. 99,999,999 ordinary shares were issued to the Round A Investors at a price of USD7.5 per share for an aggregate consideration of approximately USD750 million (approximately RMB4,750,965,000). These shares rank pari passu in all respects with the shares then in issue. (b) On March 11, 2019, the Company issued 1,748,501 ordinary shares to National Dream Limited, the offshore entity of Vantage Point Technology, for a total subscription price of USD13,114,000 (approximately RMB88,030,000) pursuant to a share subscription agreement entered into in July 2018. On November 26, 2019, the Company issued 1,267,520 ordinary shares to Great Lakes Limited, the offshore entity of View Foundation’s selling shareholder, for a total subscription price of USD9,506,400 (approximately RMB66,877,000) pursuant to a share subscription agreement entered into in August, 2019. On November 27, 2019, the Company issued 563,714 and 140,930 ordinary shares to Blossom View Limited and Gold Planning Limited, respectively, which are the offshore entities designated by certain selling shareholders of BER Technology, for a total subscription price of USD5,284,830 (approximately RMB37,175,000) pursuant to a share subscription agreement entered into in September, 2019. (c) On December 13, 2019, the Company completed its IPO on the New York Stock Exchange. In the offering, 31,200,000 ADSs, representing 93,600,000 ordinary shares, were newly issued. (d) On January 14, 2020, the over-allotment options for the IPO were partially exercised and an addition of 3,520,000 ADSs were newly issued, which represented 10,560,000 ordinary shares. On August 17, 2020, the Company completed its underwritten public offerings of 18,000,000 ADSs issued and 2,700,000 ADSs issued pursuant to the over-allotment options, which totally represented 62,100,000 ordinary shares. (e) On December 11, 2020 and December 24, 2020, the Company bought back and cancelled 3 ordinary shares from Round A Investors. (f) On April 1, 2021 and April 2, 2021, the Company bought back and cancelled 8 ordinary shares from Round A Investors. |
Other reserves
Other reserves | 12 Months Ended |
Dec. 31, 2023 | |
Other reserves | |
Other reserves | 26 Other reserves Foreign Share ‑ based currency Recapitalization Share compensation translation reserve premium reserve differences Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2021 1,200,000 9,627,159 173,577 (133,132) (227,673) 10,639,931 Other comprehensive income -Foreign currency translation differences — — — (152,542) — (152,542) -Fair value changes on financial assets measured at fair value through other comprehensive income — — — — (1,812) (1,812) Share-based payments: - Value of employee services and business cooperation arrangements(Note 27) — — 25,409 — — 25,409 - Exercise of shares under share option Scheme — — 2,345 — — 2,345 - Vesting of shares under Restricted Share Unit Scheme — — (700) — — (700) As at December 31, 2021 1,200,000 9,627,159 200,631 (285,674) (229,485) 10,512,631 Other comprehensive income -Foreign currency translation differences — — — 426,145 — 426,145 -Fair value changes on financial assets measured at fair value through other comprehensive income — — — — 5,324 5,324 Share-based payments: - Value of employee services and business cooperation arrangements (Note 27) — — 13,361 — — 13,361 - exercise of shares under share option Scheme — — 331 — — 331 - Vesting of shares under Restricted Share Unit Scheme — — (4,720) — — (4,720) As at December 31, 2022 1,200,000 9,627,159 209,603 140,471 (224,161) 10,953,072 Other comprehensive income -Foreign currency translation differences — — — 26,216 — 26,216 -Fair value changes on financial assets measured at fair value through other comprehensive income — — — — 500 500 Share-based payments: - Value of employee services and business cooperation arrangements (Note 27) — — 14,497 — — 14,497 Transactions with equity holders: - Transactions with non-controlling interests — — — — (4,434) (4,434) As at December 31, 2023 1,200,000 9,627,159 224,100 166,687 (228,095) 10,989,851 |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2023 | |
Share-based payments | |
Share based payments | 27 Share-based payments For the purpose of establishing the Group’s share incentive scheme, a special purpose vehicle was set up in 2017 to indirectly hold ordinary shares of the Company. As the Company has the power to govern the relevant activities of the special purpose vehicle and can derive benefits from the services to be rendered by the grantees, the directors of the Company consider that it is appropriate to consolidate the special purpose vehicle. In September 2020, the Company purchased at par value of the 66,171,600 ordinary shares indirectly held by the special purpose vehicle and deposited these shares to the depositary of its ADS program. The aggregate consideration of RMB88,280,000 for 66,171,600 shares had been recognized as “shares held for share incentive scheme” before the respective shares were effectively transferred to grantees under share incentive scheme. This payment of RMB88,280,000 has been settled in December 2023. On November 7, 2017, equity-settled share-based compensation plan (“the Share Option Scheme”) was set up with the objective to recognize and reward the contribution of eligible directors, employees and other persons (collectively, the “Grantees”) for the growth and developments of the Group. On September 10, 2019, the Board of Directors of the Company approved to amend and restate the equity-settled share-based compensation plan to supplement the Share Option Scheme with performance-based shares to grant to the Grantees (“the Restricted Share Units Scheme”). The 66,171,600 shares reserved for the share incentive scheme comprise the options previously granted under the Share Option Scheme and the remaining shares for grant under the Restricted Share Units Scheme. Both the Share Option Scheme and the Restricted Share Units Scheme are valid and effective for 10 years from the grant date. In 2022, the Company approved the increase of the number of ordinary shares available for award grant purpose under its share incentive scheme by 35,099,420. As such, the total number of ordinary shares which may be issued under the share incentive scheme is 101,271,020 shares. In 2022, the Board of Directors of the Company approved a new share repurchase program in which the Company may purchase its own ADSs for award grant purpose. For the year ended December 31, 2022, the Company repurchased 8.02 million ADSs for a total cost of RMB74,992,000. Share-based compensation expenses for the years ended December 31, 2021, 2022 and 2023 were allocated as follows: For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 -Cost of revenue 935 — 3,233 -Research and development expenses 5,185 — 2,975 -Selling and marketing expenses 2,854 1,002 1,938 -General and administrative expenses 16,435 12,359 6,351 Total 25,409 13,361 14,497 Value of employee’s services (Note 8) 22,618 13,176 12,117 Value of non-employee’s services 2,791 185 2,380 Total 25,409 13,361 14,497 27 Share-based payments (Continued) (a) Share Option Scheme Subject to the Grantee continuing to be a service provider, 100% of these options will be vested over 4 years upon fulfilling the non-market performance conditions prescribed in the grantee agreement. The exercisable period of options starts no earlier than 12 months after the Company successfully completes an initial public offering and the Company’s shares get listed in the stock exchange (“IPO and Listing”) and no later than 10 years Movements in the number of share options granted to employees are as follows: Number of share options For the year ended December 31, 2021 2022 2023 At the beginning of the year 19,459,994 12,725,995 10,137,344 Exercised (5,181,306) (621,930) — Forfeited (1,552,693) (1,966,721) (1,995,534) At the end of the year 12,725,995 10,137,344 8,141,810 For the outstanding share options, the weighted-average exercise price was RMB21.00 and RMB18.02 per share and the weighted-average remaining contractual life was 5.28 and 4.22 years, respectively, as of December 31, 2022 and 2023, respectively. Share options outstanding at the balance sheet dates have the following expiry dates and exercise prices. Number of share options As at December 31, Grant Year Expiry Year Exercise price Fair value of options 2022 2023 2017 2027 RMB1.33 RMB0.62 977,951 944,490 2017 2027 RMB2.00 RMB0.52 5,295,021 4,576,500 2018 2028 RMB52.00 RMB26.00 3,044,462 2,068,320 2019 2029 RMB52.00 RMB23.42 819,910 552,500 10,137,344 8,141,810 The Company have used the discounted cash flow method to determine the underlying equity fair value of the Company to determine the fair value of the underlying ordinary share before its IPO. Key assumptions, such as discount rate and projections of future performance, are required to be determined by the Company with best estimate. Based on fair value of the underlying ordinary share, the Company have used Binomial option-pricing model to determine the fair value of the share option as at the grant date. Key assumptions are set as below: 2017 2018 2019 Discount rate 24.0 % 17.0 % 17.0 % Risk‑free interest rate 4.0 % 4.0 % 3.0 % Volatility 52.0 % 51.0 % 46.0 % Dividend yield 0.0 % 0.0 % 0.0 % 27 Share-based payments (Continued) (a) Share Option Scheme (Continued) The Binomial Model requires the input of highly subjective assumptions. The risk-free rate for periods within the contractual life of the option is based on the China Treasury yield curve in effect at the time of grant. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected life of the options. The Company estimates the volatility of its ordinary shares at the respective dates of grant based on the historical volatility of similar U.S. public companies for a period equal to the expected life preceding the grant date. (b) Restricted Share Units Scheme Subject to the Grantee continuing to be a service provider, 100% of these restricted share units will be vested over 4 years upon fulfilling the service conditions and performance conditions prescribed in the grantee agreement. Movements in the number of restricted share units granted to employees are as follows: Number of restricted share units For the year ended December 31, 2021 2022 2023 At the beginning of the year 1,751,702 16,552,829 36,232,094 Granted 17,033,120 28,745,900 230,000 Vested (524,358) (3,538,551) — Forfeited (1,707,635) (5,528,084) (5,935,971) At the end of the year 16,552,829 36,232,094 30,526,123 27 Share-based payments (Continued) (b) Restricted Share Units Scheme (Continued) Restricted share units outstanding at the balance sheet dates have the following expiry dates and fair value prices. Number of restricted share units As at December 31, 2022 2023 Fair value of restricted share units Grant Year Expiry Year RMB 09/10/2019 09/10/2029 35.22 204,503 158,807 01/01/2020 01/01/2030 16.18 11,509 11,502 04/01/2020 04/01/2030 16.98 45,008 42,505 07/01/2020 07/01/2030 38.67 1,502 1,500 06/01/2021 06/01/2031 13.69 248,043 155,040 06/01/2021 06/01/2031 14.31 7,502 7,500 06/01/2021 06/01/2031 14.93 112,500 112,500 07/01/2021 07/01/2031 15.16 147,751 99,001 09/01/2021 09/01/2031 5.53 4,198,965 3,335,253 10/01/2021 10/01/2031 5.25 116,593 70,001 10/01/2021 10/01/2031 4.68 3,973,655 3,444,091 01/02/2022 01/02/2032 2.40 126,862 103,397 01/02/2022 01/02/2032 2.41 1,740,001 1,740,001 01/02/2022 01/02/2032 3.29 567,700 462,265 01/02/2022 01/02/2032 2.64 300,000 365,760 04/02/2022 04/02/2032 1.78 130,000 130,000 07/02/2022 07/02/2032 2.72 40,000 40,000 10/02/2022 10/02/2032 0.98 80,000 80,000 12/16/2022 12/16/2032 0.81 24,180,000 19,977,000 01/02/2023 01/02/2033 0.71 — 190,000 36,232,094 30,526,123 Based on fair value of the underlying ordinary share, the Company have used the Monte Carlo model to determine the fair value of the restricted share units as at the grant date. Key assumptions are set as below: 2021 2022 2023 Risk-free interest rate 2.0%~3.0 % 2.0%~3.0 % 2.0%~3.0 % Volatility 43.0%~49.0 % 43.0%~49.0 % 48.0%~49.0 % Dividend yield 0.0 % 0.0 % 0.0 % The Monte Carlo model requires the input of highly subjective assumptions. The risk-free rate for periods within the contractual life of the restricted share units is based on the China Treasury Bond Yield Curve in effect at the time of grant. The expected dividend yield was estimated based on the Company’s expected dividend policy over the expected life of the restricted share units. The Company estimates the volatility of its ordinary shares at the date of grant based on the historical volatility of similar US public companies for a period equal to the expected life preceding the grant date. 27 Share-based payments (Continued) (c) Share Repurchase In 2022, the Board of Directors of the Company approved a new share repurchase program in which the Company may purchase its own ADSs for award grant purpose. For the year ended December 31, 2022, the Company repurchased 8.02 million ADSs as 24.07 million ordinary shares for a total cost of RMB74,992,000. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other payables. | |
Trade and other payables | 28 Trade and other payables As at December 31, 2022 2023 RMB’000 RMB’000 Trade payables (i) Due to related parties 442,007 119,434 Due to third parties 311,610 127,125 753,617 246,559 Redemption liability (ii, iii) 243,937 232,951 Accrued expenses 516,240 436,846 Security deposits 160,814 136,813 Lease liabilities (Note 18(a)) 91,583 51,224 Amounts payable for purchase of shares held for share incentive scheme (Note 27) 88,280 — Income and other tax payables 51,913 45,057 Amounts due to related parties 644,900 744,604 Others 112,822 115,517 2,664,106 2,009,571 Less: non - current portion Lease liabilities (44,553) (28,283) Amounts payable for purchase of shares held for share incentive scheme (Note 27) (88,280) — (132,833) (28,283) 2,531,273 1,981,288 (i) As at December 31, 2022, and 2023, based on recognition date, the aging of the trade payables are mainly within 1 year . (ii) According to the shareholders agreement of BER Technology, the non-controlling shareholders shall have the right to request the Group to purchase the remaining 20% equity interests in BER Technology in an agreed period from June 30, 2022 to December 31, 2022. The purchase price was determined based on the financial performance of BER Technology and a pre-determined formula that set out in the respective shareholders agreement. Accordingly, the redemption liability of approximately RMB 44,105,000 was initially recognized by the Group upon completion of acquisition as at the present value of the estimated future cash outflows, and the same amount was debited to other reserve. The redemption liability was subsequently measured at amortized cost. On December 30, 2022, the Group entered into a share purchase agreement with non-controlling shareholders of BER Technology to acquire the remaining 20% equity interests of BER Technology after renegotiation. The Group acquired the remaining 20% equity interests of BER Technology for RMB 15,000,000 and relevant redemption liability has been settled in 2023. 28 Trade and other payables (Continued) (iii) The Group wrote a put option on the equity in Vantage Point Technology pursuant to the relevant transaction documents entered into with certain non-controlling shareholders of Vantage Point Technology, which provides each of such non-controlling shareholders with the right to require the Group to purchase the equity interest subject to the terms and conditions of the put option. A financial liability (redemption liability) of RMB 183,569,000 was initially recognized on the acquisition date to account for the put option and other reserve of the same amount were debited accordingly. The redemption liability was subsequently measured at amortized cost. As at December 31, 2023, the redemption liability of RMB 232,951,000 was estimated based on the estimation of matters relating to the terms and conditions of the put option which is in the process of renegotiation as of the date of this report. |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Short-term borrowings. | |
Short-term borrowings | 29 Short-term borrowings As at December 31, 2022 2023 RMB’000 RMB’000 Unsecured 289,062 251,732 The weighted average interest rate of short-term borrowings was 4.61%, 4.48% per annum as at December 31, 2022, 2023. |
Customer deposits
Customer deposits | 12 Months Ended |
Dec. 31, 2023 | |
Customer deposits | |
Customer deposits | 30 Customer deposits As at December 31, 2022 2023 RMB’000 RMB’000 Current and savings accounts 243,231 437,153 Fixed deposit 1,685,952 1,824,061 1,929,183 2,261,214 It represented customer deposits held by OneConnect Bank. |
Other financial liabilities fro
Other financial liabilities from virtual bank | 12 Months Ended |
Dec. 31, 2023 | |
Other financial liabilities from virtual bank | |
Other financial liabilities from virtual bank | 31 Other financial liabilities from virtual bank As at December 31, 2022 2023 RMB ’ 000 RMB ’ 000 Repurchase agreements 89,327 54,373 As at December 31, 2023, the repurchase agreements of OneConnect Bank amounting to RMB54,373,000 (HKD60,000,000) were secured by debt securities included in “Financial assets measured at fair value through other comprehensive income”. |
Derivative financial assets and
Derivative financial assets and liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments by category | |
Derivative financial assets and liabilities | 32 Derivative financial assets and liabilities As at December 31, 2022 2023 Nominal Nominal amount Fair value amount Fair value RMB’000 RMB’000 Foreign exchange swaps 648,404 19,279 5,666 388 Currency forwards 741,937 37,084 358,636 37,620 Derivative financial assets 1,390,341 56,363 364,302 38,008 Foreign exchange swaps 208,938 9,568 — — Derivative financial liabilities 208,938 9,568 — — |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2023 | |
Dividends | |
Dividends | 33 Dividends No dividends had been paid or declared by the Company during the years ended December 31, 2022 and 2023. |
Deferred income tax
Deferred income tax | 12 Months Ended |
Dec. 31, 2023 | |
Deferred income tax | |
Deferred income tax | 34 Deferred income tax (a) Deferred tax assets The movements of deferred tax assets were as follows: Accelerated amortization of intangible Tax losses assets Others Total RMB’000 RMB’000 RMB’000 RMB’000 At January 1, 2021 312,908 212,035 59,751 584,694 Recognized in the profit or loss 116,993 (5,513) 8,644 120,124 At December 31, 2021 429,901 206,522 68,395 704,818 Recognized in the profit or loss 112,340 (21,274) (16,489) 74,577 At December 31, 2022 542,241 185,248 51,906 779,395 Recognized in the profit or loss 40,384 (27,336) 359 13,407 At December 31, 2023 582,625 157,912 52,265 792,802 34 Deferred income tax (Continued) (b) Deferred tax liabilities The movements of deferred tax liabilities were as follows: Intangible assets acquired through business combination Others Total RMB’000 RMB’000 RMB’000 At January 1, 2021 20,080 18,141 38,221 Recognized in the profit or loss (10,219) 3,459 (6,760) At December 31, 2021 9,861 21,600 31,461 Recognized in the profit or loss (4,665) (8,164) (12,829) At December 31, 2022 5,196 13,436 18,632 Recognized in the profit or loss (3,117) 11,090 7,973 At December 31, 2023 2,079 24,526 26,605 (c) Offsetting of deferred tax assets and deferred tax liabilities As at 31 December 2021 2022 2023 RMB’000 RMB’000 RMB’000 Deferred tax assets 704,818 779,395 792,802 Set-off of deferred tax liabilities (21,600) (13,436) (24,526) 683,218 765,959 768,276 As at 31 December 2021 2022 2023 RMB’000 RMB’000 RMB’000 Deferred tax liabilities 31,461 18,632 26,605 Set-off of deferred tax assets (21,600) (13,436) (24,526) 9,861 5,196 2,079 |
Cash flow information
Cash flow information | 12 Months Ended |
Dec. 31, 2023 | |
Cash flow information | |
Cash flow information | 35 Cash flow information (a) Cash used in operations For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Loss before income tax (1,442,608) (990,173) (361,714) Depreciation and amortization 438,749 281,430 201,341 Net impairment losses on financial and contract assets 72,229 33,639 53,950 Net impairment losses on intangible assets — 10,208 5,851 Losses on disposal of property and equipment and intangible asset 266 14,490 6,058 Share-based payments expenses (Note 27) 25,409 13,361 14,497 Net losses/ (gain) on derivatives (Note 9) 169,545 (262,769) (30,592) Net gain on financial assets at fair value through profit or loss (Note 9) (45,644) (30,687) (20,007) Share of gain of associate and joint venture (Note 15) (9,946) (24,852) (4,607) Impairment charges on associate(Note 15) — 10,998 7,157 Remeasurement of redemption liability(Note 9) — (37,874) — Finance costs 74,743 35,168 19,535 Interest from investing activities (22,983) (6,646) (26,252) Exchange (gain)/losses (Note 9) (77,143) 312,843 11,171 Changes in working capital: Trade receivables (123,371) (63,884) 185,745 Contract assets 45,855 106,135 29,276 Prepayments and other receivables (353,480) (335,419) 165,244 Trade and other payable 530,095 106,952 (817,507) Contract liabilities 17,032 13,365 (30,938) Customer deposits 944,318 579,012 332,031 Other financial liabilities from virtual bank — 89,327 (34,954) Financial assets measured at amortized cost from virtual bank 586,953 13,341 (3,098) Financial assets measured at fair value through other comprehensive income from virtual bank (1,103,460) (504,942) (294,583) Payroll and welfare payables (110,263) (83,809) (45,350) (383,704) (720,786) (637,746) (b) Non-cash investing and financing activities For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Acquisition of right‑of‑use properties by leasing (Note 13) 118,030 76,534 21,612 35 Cash flow information (Continued) (c) Reconciliation of cash and liquid investments and gross debt This section sets out an analysis of cash and liquid investments and gross debt as of December 31, 2022 and 2023 and the movements in cash and liquid investments and gross debt for the years ended December 31, 2021, 2022 and 2023. As at December 31, 2022 2023 RMB’000 RMB’000 Restricted cash and time deposits over three months 343,814 447,564 Cash and cash equivalents 1,907,776 1,379,473 Financial assets at fair value through profit or loss 690,627 925,204 Lease liabilities (Note 18) (91,583) (51,224) —due within one year (47,030) (22,941) —due after one year (44,553) (28,283) Borrowings — repayable within one year (289,062) (251,732) 2,561,572 2,449,285 Cash and liquid investments 2,942,217 2,752,241 Gross debt — fixed interest rates (380,645) (302,956) 2,561,572 2,449,285 Financial assets at fair value Liabilities from through financing activities Restricted Cash and cash profit or Lease cash (ii) equivalents loss liabilities Borrowings Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2021 2,280,499 3,055,194 1,487,871 (134,219) (2,283,307) 4,406,038 Cash flows (1,206,607) (1,627,680) 538,138 96,139 1,524,899 (675,111) Acquisition of right-of-use assets — — — (118,030) — (118,030) Other Changes (i) (13,465) (28,144) 45,644 1,220 (56,852) (51,597) As at December 31, 2021 1,060,427 1,399,370 2,071,653 (154,890) (815,260) 3,561,300 Cash flows (788,828) 433,119 (1,411,713) 76,734 543,501 (1,147,187) Acquisition of right-of-use assets — — — (76,534) — (76,534) Other Changes (i) 72,215 75,287 30,687 63,107 (17,303) 223,993 As at December 31, 2022 343,814 1,907,776 690,627 (91,583) (289,062) 2,561,572 Cash flows 77,533 (543,432) 214,570 60,922 49,403 (141,004) Acquisition of right-of-use assets — — — (21,612) — (21,612) Other Changes (i) 26,217 15,129 20,007 1,049 (12,073) 50,329 As at December 31, 2023 447,564 1,379,473 925,204 (51,224) (251,732) 2,449,285 (i) Other changes include accrued interests, disposal, foreign currency translation differences and other non-cash movements. (ii) Cash flows include restricted cash and time deposits over three months movements recognized in cash flows from operating activities and investing activities. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 36 Related party transactions The following significant transactions were carried out between the Group and its related parties during the years ended December 31, 2021, 2022 and 2023. (a) Names and relationships with related parties The following companies are related parties of the Group that had balances and/or transactions with the Group during the years ended December 31, 2021, 2022 and 2023. Name of related parties Relationship with the Group Sen Rong Limited(i) A shareholder that has significant influence over the Group Rong Chang Limited(i) A shareholder that has significant influence over the Group Bo Yu A shareholder that has significant influence over the Group Ping An Group Ultimate parent company of Bo Yu Subsidiaries of Ping An Group Controlled by Ping An Group Open Portal Guangxi Significant influenced by the Group (i) Sen Rong Limited and Rong Chang Limited has entered into an acting-in-concert agreement in 2020 and an amended and restarted agreement in 2021. As a result, Rong Chang and Sen Rong as a concert group had significant influence over the Group. (b) Key management personnel compensations Key management includes directors (executive and non-executive) and senior officers. The compensations paid or payable by the Group to key management for employee services are shown below: For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Wages and salaries 28,163 21,123 20,806 Welfare and other benefits 772 614 654 Share-based payments 4,187 8,401 4,909 33,122 30,138 26,369 36 Related party transactions (Continued) (c) Significant transactions with related parties For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Revenue Ping An Group and its subsidiaries 2,315,220 2,526,682 2,091,039 For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Purchase of services Ping An Group and its subsidiaries 1,534,302 1,706,436 1,423,367 Net loss on disposal of property and equipment Ping An Group and its subsidiaries — (599) (1,359) Net gain from wealth management products consolidated by related parties Ping An Group and its subsidiaries 26,249 18,890 12,996 Net (loss)/gain on derivatives Ping An Group and its subsidiaries (169,545) 262,769 30,592 Investment income from loan to related party Open Portal Guangxi — 283 — Interest income on bank deposits Ping An Group and its subsidiaries 12,037 9,234 17,637 Leasing payment Ping An Group and its subsidiaries 19,849 20,957 12,131 Interest expenses Ping An Group and its subsidiaries 15,914 2,672 — Net gain on financial assets measured at fair value through other comprehensive income Ping An Group and its subsidiaries — 315 — 36 Related party transactions (Continued) (d) Year end balances with related parties As at December 31, 2022 2023 RMB’000 RMB’000 Trade receivables Ping An Group and its subsidiaries (i) 372,456 299,098 Contract assets Ping An Group and its subsidiaries 9,876 7,538 Prepayment and other receivables Ping An Group and its subsidiaries 771,137 599,671 Financial assets at fair value through profit or loss (Note 22) Ping An Group and its subsidiaries 405,960 417,956 Cash and restricted cash and time deposits over three months Ping An Group and its subsidiaries 787,916 784,840 Trade and other payables Ping An Group and its subsidiaries (i) 1,086,907 864,038 Contract liabilities Ping An Group and its subsidiaries 27,517 25,550 Derivative financial assets Ping An Group and its subsidiaries 56,363 38,008 Derivative financial liabilities Ping An Group and its subsidiaries 9,568 — (i) The balances with related parties were unsecured, interest-free and repayable on demand. |
The Group's maximum exposure to
The Group's maximum exposure to unconsolidated structured entities | 12 Months Ended |
Dec. 31, 2023 | |
The Group's maximum exposure to unconsolidated structured entities | |
The Group's maximum exposure to unconsolidated structured entities | 37 The Group’s maximum exposure to unconsolidated structured entities The Group has determined that all of assets management products managed by the Group and its investments in wealth management products, which are not controlled by the Group, are unconsolidated structured entities. The Group invests in wealth management products managed by related parties for treasury management purposes. The Group also managed some assets management fund products as fund manager to generate fees from managing assets on behalf of other investors, mainly Ping An Group and its subsidiaries. The assets management fund products are financed by capital contribution from investors. The following table shows the Group’s maximum exposure to the unconsolidated structured entities which represents the Group’s maximum possible risk exposure that could occur as a result of the Group’s arrangements with structured entities. The maximum exposure is contingent in nature and approximates the sum of direct investments made by the Group. The direct investments made by the Group are classified as FVPL. The size of unconsolidated structured entities and the Group’s funding and maximum exposure are shown below: Unconsolidated structured entities The Group’s Carrying maximum Interest held 31 December 2022 Size amount exposure by the Group RMB’000 RMB’000 RMB’000 Asset management products managed by the Group 594,058 — — Service fee Wealth management products managed by related parties Note a 690,627 690,627 Investment income Unconsolidated structured entities The Group’s Carrying maximum Interest held 31 December 2023 Size amount exposure by the Group RMB’000 RMB’000 RMB’000 Wealth management products managed by related parties Note a 532,147 532,147 Investment income Note a: The wealth management products are sponsored by related financial institutions and the information related to size of these structured entities were not publicly available. The carrying amount is recorded in financial assets at fair value through profit or loss. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Contingencies | |
Contingencies | 38 Contingencies The Group did not have any material contingent liabilities as at December 31, 2022 and 2023. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2023 | |
Restricted net assets | |
Restricted net assets | 39 Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the subsidiaries, the VIEs and Subsidiaries of VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, each of the Company’s subsidiaries, the VIEs and Subsidiaries of VIEs is required to annually appropriate 10% of net after-tax income to the statutory general reserve fund prior to payment of any dividends, unless such reserve funds have reached 50% of its respective registered capital. As a result of these and other restrictions under PRC laws and regulations, the subsidiaries and the Consolidated Affiliated Entities are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances of the Group’s total consolidated net assets. As at December 31, 2023, the total restricted net assets of the Company’s subsidiaries and the VIEs and Subsidiaries of VIEs incorporated in PRC and subjected to restriction amounted to approximately RMB 6,338,242,000. Even though the Company currently does not require any such dividends, loans or advances from the PRC entities for working capital and other funding purposes, the Company may in the future require additional cash resources from them due to changes in business conditions, to fund future acquisitions and development, or merely to declare and pay dividends or distributions to its shareholders. Except for the above, there is no other restriction on the use of proceeds generated by the Company’s subsidiaries and the VIEs and Subsidiaries of VIEs to satisfy any obligations of the Company. |
Parent company only condensed f
Parent company only condensed financial information | 12 Months Ended |
Dec. 31, 2023 | |
Parent company only condensed financial information | |
Parent company only condensed financial information | 40 Parent company only condensed financial information Parent Company only financial statements have been provided pursuant to the requirements of Securities and Exchange Commission Regulation S-X Rule 12-04(a), which require condensed financial information as to financial position, cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented, as the restricted net assets of the Company’s consolidated subsidiaries, including VIEs, as of December 31, 2023 exceeded the 25% threshold, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries and VIEs. Certain information and footnote disclosures generally included in financial statements prepared in accordance with IFRSs have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments or guarantees as at December 31, 2023. The subsidiaries did not pay any dividend to the Company for the years presented. 40 Parent company only condensed financial information (Continued) (a) Condensed Statements of Comprehensive Income Year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Selling and marketing expenses (439) (387) (90) General and administrative expenses (53,621) (104,653) (32,965) Net impairment losses on amount due from subsidiaries — (465,457) (281,288) Other income, gains or loss‑net 834 2,555 (457) Operating loss (53,226) (567,942) (314,800) Finance (costs)/income – net (32) (573) 196 Share of losses of joint venture (2,896) — — Share of losses of subsidiaries and VIEs (1,225,545) (303,759) (48,111) Loss before income tax (1,281,699) (872,274) (362,715) Income tax expenses — — — Loss for the year (1,281,699) (872,274) (362,715) Other comprehensive income, net of tax Items that may be subsequently reclassified to profit or loss – Foreign currency translation differences (152,542) 69,454 3,880 – Changes in the fair value of debt instruments measured at fair value through other comprehensive income (16) 5,324 500 Items that will not be subsequently reclassified to profit or loss – Foreign currency translation differences — 356,691 22,336 – (1,796) — — Total comprehensive loss (1,436,053) (440,805) (335,999) 40 Parent company only condensed financial information(Continued) (b) Condensed Balance Sheets As at December 31, 2022 2023 Note RMB’000 RMB’000 ASSETS Non ‑ current assets Interest in subsidiaries 40(d) 1,764,074 2,181,554 Total non ‑ current assets 1,764,074 2,181,554 Current assets Amount due from subsidiaries 40(d) 1,641,677 803,173 Prepayments and other receivables 448 435 Cash and cash equivalents 7,327 3,267 Total current assets 1,649,452 806,875 Total assets 3,413,526 2,988,429 EQUITY AND LIABILITIES Equity Share capital 25 78 78 Shares held for share incentive scheme 27 (149,544) (149,544) Reserves 26 10,953,072 10,989,851 Accumulated loss (7,510,899) (7,873,614) Total equity 3,292,707 2,966,771 Liabilities Non ‑ current liabilities Trade and other payables 88,280 — Total non ‑ current liabilities 88,280 — Current liabilities Trade and other payables 32,539 21,658 Total current liabilities 32,539 21,658 Total liabilities 120,819 21,658 Total equity and liabilities 3,413,526 2,988,429 40 Parent company only condensed financial information (Continued) (c) Condensed Statements of Cash Flows Year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Cash used in operating activities Cash used in operations (51,132) (139,011) (44,284) Net cash used in operating activities (51,132) (139,011) (44,284) Cash flows from investing activities Payment for interest in subsidiaries, net of cash acquired (1,333,804) (3,005,546) (1,117,823) Proceeds from loan to subsidiaries 1,350,654 3,218,655 1,157,947 Net cash generated from investing activities 16,850 213,109 40,124 Cash flows from financing activities Proceeds from exercise of shares under share incentive scheme 9,257 1,161 — Payments for shares repurchase — (74,992) — Net cash generated from/ (used in) financing activities 9,257 (73,831) — Net (decrease)/increase in cash and cash equivalents (25,025) 267 (4,160) Cash and cash equivalents at the beginning of the year 31,857 6,454 7,327 Effects of exchange rate changes on cash and cash equivalents (378) 606 100 Cash and cash equivalents at the end of year 6,454 7,327 3,267 (d) Interest in subsidiaries and amount due from subsidiaries As at December 31, 2022 2023 RMB’000 RMB’000 Interest in subsidiaries Equity investment in subsidiaries 1,764,074 2,181,554 As at December 31, 2022 2023 RMB’000 RMB’000 Amount due from subsidiaries Loan receivables 1,641,677 803,173 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent events | |
Subsequent events | 41 Subsequent events On November 13, 2023, the Company entered into the Share purchase Agreement with Lufax Holding Ltd (the Purchaser), pursuant to which the Company conditionally agreed to sell, and the Purchaser conditionally agreed to acquire OneConnect Bank through transferring the entire issued share capital of the Jin Yi Tong Limited (the “Disposal Company”, a company indirectly holds 100% of the issued share capital of OneConnect Bank through its 100% owned subsidiary Jin Yi Rong Limited) at a consideration of HK $933,000,000 in cash, subject to the terms and conditions of the Share Purchase Agreement. Upon closing, the Company will cease to hold any interest in the Disposal Company. Accordingly, the Disposal Company, Jin Yi Rong Limited and OneConnect Bank and any company that is directly or indirectly controlled by OneConnect Bank (the “Disposal Group”) will cease to be subsidiaries of the Company and will no longer be consolidated into the financial statements of the Group. The transaction was approved by shareholders of the Company through an extraordinary general meeting held on January 16, 2024 and was completed on April 2, 2024. The relevant disposal gain is approximately RMB 262 million. |
Summary of accounting policy _2
Summary of accounting policy information (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of accounting policy information | |
Basis of preparation | 2.1 Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards (“IFRSs”) issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets measured at fair value through other comprehensive income, financial assets at fair value through profit or loss and derivative financial assets and liabilities, which are carried at fair value and subsequent changes are recognized in the statement of comprehensive income. The preparation of the consolidated financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4 below. |
Recent accounting pronouncements | 2.2 Recent accounting pronouncements (a) New and amended standards and interpretations adopted by the Group The Group has applied the following standards and amendments for the first time for their annual reporting period commencing January 1, 2023: ● IFRS 17 Insurance Contracts ● Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies ● Amendments to IAS 8 – Definition of Accounting Estimates ● Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendment to IAS 12 – International tax reform – pillar two model rules The amendments listed above did not have material impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods. (b) New standards and amendments to standards and interpretations not yet adopted Several new standards and amendments to standards and interpretations have been issued but not effective during the year 2023 and have not been early adopted by the Group in preparing these consolidated financial statements: Effective for annual periods beginning on or after Amendments to IAS 1 – Classification of Liabilities as Current or Non-current January 1, 2024 Amendments to IAS 1 – Non-current liabilities with covenants January 1, 2024 Amendments to IFRS 16 – Lease liability in sale and leaseback January 1, 2024 Amendments to IAS 7 and IFRS 7 – Supplier finance arrangements January 1, 2024 Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined Amendments to IAS 21 – Lack of Exchangeability January 1, 2025 The above new standards, new interpretations and amended standards are not expected to have a material impact on the consolidated financial statements of the Group. |
Revenue recognition | 3.1.1 Revenue recognition Revenue represents the amount of consideration the Group is entitled to upon the transfer of promised goods or services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). Revenues are recognized when or as control of the asset or service is transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the goods and services may be transferred over time or at a point in time. Control of the goods and services is transferred over time if the Group’s performance: ● provides all of the benefits received and consumed simultaneously by the customer; ● creates and enhances an asset that the customer controls as the Group performs; or ● does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. The progress towards complete satisfaction of the performance obligation is measured based on one of the following methods that best depict the Group’s performance in satisfying the performance obligation: ● direct measurements of the value transferred by the Group to the customer; or ● the Group’s efforts or inputs to the satisfaction of the performance obligation. When either party to a contract has performed, the Group presents the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A contract asset is the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. If the value ascribed to the services rendered by the Group exceed the payment, a contract asset is recognized. Judgement is required in determining whether a right to consideration is unconditional and thus qualifies as a receivable. A receivable is recorded when the Group has an unconditional right to consideration on the date the payment is due even if it has not yet performed under the contract. If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract as a contract liability when the payment is made or the payment is due (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. A contract liability is recognized as revenue upon transfer of control to the customers of the promised license, products and services. Some of the Group’s contracts with customers contain multiple performance obligations. For these contracts, the Group accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Although each of the performance obligations sometimes has a separate contractual price agreed in the contract, the management compares the contractual price with observable standalone market price, if any, or cost plus a margin price to assess the reasonableness of the pricing. If the contractual price for each performance obligation is assessed to be on market price basis, the Group uses the contractual price to measure and recognize revenue for each performance obligation. If the contractual price for each performance obligation is assessed to be not on market price basis, the Group reallocates the total contract price to the identified performance obligations based on its best estimated standalone selling price of each performance obligation. Only the contracts for business origination services (Note 3.1.1(b)) contain significant financing components. As a practical expedient, the Group does not account for financing components if the period between when the Group transfers the promised goods or services to the customer and when the customer pays for those goods or services is one year or less. Incremental costs of obtaining customer contract primarily consist of sales commissions and are capitalized as an asset. The Group amortizes assets recognized from capitalizing costs to obtain a contract on a systematic basis to profit or loss, consistent with the pattern of revenue recognition to which the asset relates. As a practical expedient, the Group recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Group otherwise would have recognized is one year or less. The following is a description of the accounting policy for the principal revenue streams of the Group. (a) Implementation and post-implementation support services Implementation services represent customer-specific software development or customization services provided to customers for the use of the Group’s software in cloud offerings or on-premise IT environment. The implementation contract is either on a time and material basis or fixed-fee basis. The Group invoices fees for implementation services based on actual time and materials incurred to date or according to pre-agreed payment schedules. After development, license to use the software is granted to the customer with an indefinite life. The customer cannot benefit from the implementation service on its own without the license. The perpetual license is a result of the implementation service. The implementation service and the perpetual license are highly interrelated and within the context of the contract, the promise of the Group is to transfer the implementation service together with the perpetual license as one output to its customers. Both the implementation service and the perpetual license to use the software are not distinct and thus should be combined together as one performance obligation. And there is no sales/usage-based royalty for the license to use the software in the arrangement. The Group’s customer contracts often include both implementation services and post-implementation support services. Customers can benefit from implementation service and post-implementation support service on their own, and those services are clearly stated in the contract and are separately identifiable, they are not integrated or interrelated with each other, and do not significantly affect each other. For implementation services, revenue is recognized over time if the Group’s performance (i) provides all of the benefits received and consumed simultaneously by the customer, (ii) creates and enhances an asset that the customer controls as the Group performs, or (iii) does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. Accordingly, revenue for implementation contracts is recognized over the contract terms by reference to the progress of work performed, which is measured based on costs incurred toward satisfying the performance obligation, relative to total costs expected to be incurred to the complete satisfaction of the performance obligation. Otherwise revenue is recognized at a point in time when control of the promised services is transferred to the customer. For post-implementation support services, the performance obligation is to stand ready to provide technical support and unspecified updates and upgrades on a when-and-if-available basis. The customers simultaneously receive and consume the benefits of these support services as the Group performs and revenue is recognized based on time elapsed and thus ratably over the term of the support arrangement. (b) Transaction based service The Group derives its transaction based service revenue primarily from business origination services, risk management services, operation support services and other services. Business origination services The Group provides business origination services by assisting financial institutions in customer acquisition for their products including loans, wealth management products and insurance policies etc. In order to satisfy its performance obligations (that is generating customer leads for financial institutions), the Group designs marketing plans, sources leads and analyzes the leads. The Group generates customer leads for financial institutions through its own platform or from channel partners. The leads, which are sourced from the Group’s own platform or from the channel partners, are grouped together and are screened and analyzed by the Group to ensure that they meet customers’ criteria. When the leads are sourced from the channel partners, the Group determined that it is the principal in providing the business origination services to the financial institutions because the Group controls the leads sourced from channel partners, screens and analyzes the leads before delivering those leads to customers. For business origination services, the Group is primarily responsible for fulfilling the promise to generate customer leads to financial institutions and has full discretion in establishing the price for the business origination services provided to financial institutions, as well as the selection of and determination of prices paid to the channel partners. Accordingly, the Group records revenue based on the gross amount payable by the financial institutions and records the amount payable to the channel partners as cost of revenue. The Group normally charges its customers based on successful referrals at fixed charge rates.The revenue for business origination services is recognized when a referral is successfully accepted by financial institutions. The Group determined that it is not the legal lender and legal borrower (or receiver of deposits from investors) in the loan origination and repayment process. Therefore, the Group does not record loans receivable and payable arising from the loans between lenders and borrowers. The Group acts as an agent to facilitate such loans. Operation support services Operation support services mainly represent calling services and insurance loss assessment services, digital certification and related services and solutions, service management platforms to participants around auto aftermarket scenarios, asset monitoring services and consulting services provided to financial institutions. For contracts which the Group charges its customers based on usage of the services at fixed charge rates, and invoices the fees on periodical basis, the revenue from these services is recognized at a point in time when the customers receive and consume the benefits of these services each time the Group performs, based on the amount charged for such services. For contracts which the Group charges its customers based on the term of services and invoices the fee on periodical basis, and the performance obligation is to stand ready to provide operation support, the customers simultaneously receive and consume the benefits of these support services as the Group performs and revenue is recognized over time based on time elapsed and thus ratably over the term of the support arrangement. When the consideration receivable is different from the revenue recognized, a “contract asset” or “contract liability” shall be recognized in the consolidated statement of financial position. Risk management services Risk management services mainly represent credit risk assessment, identity verification service, risk management services used in insurance loss assessment and anti-fraud services provided to financial institutions. For risk management services contracts, the Group normally charges its customers based on usage of the services at fixed charge rates, and invoices the fees on periodical basis. The revenue from these services is recognized at a point in time when the customers receive and consume the benefits of these services each time the Group performs, based on the amount charged for such services. Cloud platform services Cloud platform services mainly represent providing financial institutions with value-added services including computing, storage, database and backup services on a variety of cloud infrastructures. For cloud platform contracts, the Group normally charges its customers based on usage of the services at fixed charge rates, and invoices the fees on periodical basis. The revenue from these services is recognized over time based on time elapsed and thus ratably over the contract terms when the customers receive and consume the benefits of these services. Others Other revenue mainly represents sales of products, asset management services and revenue from virtual bank. For sales of products, the Group recognizes revenue net of discounts and return allowances upon the time when the products are delivered to customers. (c) For virtual bank , interest income from debt instruments measured at amortized cost and debt instruments measured at fair value through other comprehensive income is recognized in revenue using the effective interest rate method. Fees and commissions are recognized on an accrual basis when the service has been provided or significant act performed. |
Intangible assets | 3.1.2 Intangible assets The Group’s intangible assets include application and platforms, purchased software, development costs in progress, goodwill, business licenses and others. Intangible assets can be recognized only when future economic benefits expected to be obtained from the use of the item will flow into the Group and its cost can be measured reliably. Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is the fair value as at the date of acquisition. Costs associated with maintaining application and platform are recognized as an expense as incurred. Development costs that are directly attributable to the development and testing of identifiable application and platform controlled by the Group are recognized as intangible assets when the following criteria are met: ● it is technically feasible to complete the application and platform so that it will be available for use ● management intends to complete the application and platform and use or sell it ● there is an ability to use or sell ● it can be demonstrated how the application and platform will generate probable future economic benefits ● adequate technical, financial and other resources to complete the development and to use or sell the application and platform are available, and ● the expenditure attributable to the application and platform during its development can be reliably measured. Directly attributable costs that are capitalized mainly include employee costs and technology service fees. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is ready for use. The useful lives of intangible assets are assessed by the period of bringing economic benefits for the Group. The useful lives of intangible assets excluding development cost in progress are set as follows: Expected useful life ● 3 - 10 years ● 3 - 10 years ● 3 - 5 years Intangible assets with finite lives are subsequently amortized on the straight-line basis over the useful economic life. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed, and adjusted if appropriate, at least at each year end. Intangible assets with indefinite useful lives and development costs in progress are not amortized, but are subject to annual impairment assessment. |
Impairment of non financial assets | 3.1.3 Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that a non-financial asset other than deferred tax assets may be impaired. If any such indication exists, or when annual impairment testing for a non-financial asset is required, the Group makes an estimate of the asset’s recoverable amount. A non-financial asset’s recoverable amount is the higher of the asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the recoverable amount is determined for the cash-generating unit to which the asset belongs. Where the carrying amount of a non-financial asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to disposal, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators. For non-financial assets other than goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such an indication exists, the Group makes an estimate of the recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such a reversal is recognized in the statement of comprehensive income. Goodwill is reviewed for impairment, annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Impairment is determined by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units), to which the goodwill relates. The recoverable amount is the higher of its fair value less costs of disposal and its value-in-use, determined on an individual asset (or cash-generating unit) basis, unless the individual asset (or cash-generating unit) does not generate cash flows that are largely independent from those of other assets or groups of assets (or groups of cash-generating units). Impairment losses recognized in relation to goodwill are not reversed for subsequent increases in its recoverable amount. Intangible assets with indefinite useful lives and development costs in progress are tested for impairment annually at each year end either individually or at the cash-generating unit level, as appropriate. |
Financial assets | 3.1.4 Financial assets Classification The Group classifies its financial assets in the following measurement categories: ● those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and ● those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held and the cash flow characteristics of the asset. For investments in equity instruments, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment measured at fair value through other comprehensive income. The Group reclassifies debt investments when and only when its business model for managing those assets changes. Recognition and measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the consolidated statement of comprehensive income. (a) Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments: ● Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other income, gains or loss together with foreign exchange gains and losses. Impairment losses are presented in the consolidated statements of comprehensive income. ● Fair value through other comprehensive income (“FVOCI”): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other income, gains or loss. Interest income from these financial assets is included in other gain using the effective interest rate method. Foreign exchange gains and losses are presented in other income, gains or loss and impairment expenses are presented in the statement of profit or loss. ● Fair value through profit or loss (“FVPL”): Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognized in profit or loss and presented net within other income, gains or loss in the period in which it arises. (b) Equity instruments The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognized in profit or loss. Changes in the fair value of financial assets at fair value through profit or loss are recognized in profit or loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. (c) The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Expected credit loss refers to the weighted average amount of credit loss of financial instruments based on the probability of default. Credit loss refers to the difference between all contractual cash flows receivable and all cash flows that the entity expects to receive, discounted at the original effective interest rate. The Group recognizes or reverses the impairment provision through profit or loss. For debt instruments measured at FVOCI, impairment gains or losses are included in the net impairment losses on financial instruments and correspondingly reduce the accumulated changes in fair value included in the OCI reserves of equity. For trade receivables and contract assets, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the assets. The impairment matrix is determined based on historical observed default rates over the expected life of the contract assets and trade receivables with similar credit risk characteristics and is adjusted for forward-looking estimates. At every reporting date the historical observed default rates are updated and changes in the forward-looking estimates are analyzed. Impairment on other receivables are measured as either 12-month expected credit losses or lifetime expected credit losses, depending on whether there has been a significant increase in credit risk since initial recognition. If a significant increase in credit risk of a receivable has occurred since initial recognition, then impairment is measured as lifetime expected credit losses. |
Share-based payments | 3.1.5 Share-based payments An equity-settled share-based compensation plan was granted to the employees and non-employees, under which the entity receives services from employees and non-employees as consideration for equity instruments (options) of the Group. The fair value of the services received in exchange for the grant of the options is recognized as an expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted: ● ● ● The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the non-market performance and service conditions. It recognizes the impact of the revision to original estimates, if any, in the statement of comprehensive income, with a corresponding adjustment to equity. If the terms of an equity-settled award are modified, at a minimum an expense is recognized as if the terms had not been modified. An additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification. If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph. |
Tax | 3.1.6 Tax Income tax comprises current and deferred tax. Income tax is recognized in the statement of comprehensive income, or in other comprehensive income or in equity if it relates to items that are recognized in the same or a different period directly in other comprehensive income or in equity. Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except: ● when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and ● in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in jointly controlled entities, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carry-forward of unused tax credits and any unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax credits and unused tax losses can be utilized, except: ● when the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and ● in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in jointly controlled entities, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Conversely, previously unrecognized deferred tax assets are reassessed at the end of each reporting period and are recognized to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of the reporting period. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. |
Principles of consolidation and equity accounting | 3.2.1 Principles of consolidation and equity accounting 3.2.1.1 Subsidiaries Subsidiaries are all entities (including structured entities or VIEs as stated in Note 1.2 above) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statements of comprehensive income, consolidated statement of changes in equity and consolidated balance sheet, respectively. For the parent company’s separate financial statements, investments in subsidiaries are accounted for using the equity method. 3.2.1.2 Investments accounted for using the equity method (i) Associate An associate is an entity over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Significant influence could be demonstrated for an investment of less than 20%, for example, by representation on the board of directors or equivalent governing body of the investee. Investments in associates are accounted for using the equity method of accounting. (ii) Joint ventures Investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. Investments in joint ventures are accounted for using the equity method. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The Group’s investment accounted for using the equity method include goodwill identified on acquisition. Upon the acquisition of the ownership interest in an associate or a joint venture, any difference between the cost of the investment accounted for using the equity method and the Group’s share of the net fair value of the investment’s identifiable assets and liabilities is accounted for as goodwill. If the ownership interest in an associate or a joint venture is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income is reclassified to profit or loss where appropriate. The Group’s share of post-acquisition profit or loss is recognized in the consolidated statement of comprehensive income, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses in investment accounted for using the equity method equals or exceeds its interest in the investment, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the investment. The Group determines at each reporting date whether there is any objective evidence that the investment accounted for using the equity method is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the investment and its carrying value and recognizes the amount adjacent to “share of loss of associate and joint venture” in the consolidated statement of comprehensive income. Profits and losses resulting from upstream and downstream transactions between the Group and its investment accounted for using the equity method are recognized in the Group’s financial statements only to the extent of unrelated investor’s interests in the investment. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. Gain or losses on dilution of equity interest in the investment accounted for using the equity method are recognized in the consolidated statement of comprehensive income. |
Structured Entities | 3.2.2 Structured Entities A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only, and the relevant activities are directed by means of contractual or related arrangements. The Group determines whether it is an agent or a principal in relation to those structured entities in which the Group acts as an asset manager on management’s judgement. If an asset manager is agent, it acts primarily on behalf of others and so does not control the structured entity. It may be principal if it acts primarily for itself, and therefore controls the structured entity. The unconsolidated structured entities in which the Group acts as an asset manager is set out in Note 37. |
Business combination | 3.2.3 Business combination Except for business combinations under common control, the Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis. Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. |
Foreign currency translation | 3.2.4 Foreign currency translation Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of the Company is the United States dollar (“US$”). RMB is the functional currency of the subsidiaries in PRC. As the major operations of the Group are within the PRC, the directors of the Company have chosen to present the Group’s financial statements in RMB (the presentation currency). Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in the consolidated statements of comprehensive income. Foreign exchange gains and losses that relate to borrowings are presented in the consolidated statements of comprehensive income, within finance costs. All other foreign exchange gains and losses are presented in the consolidated statements of comprehensive income on a net basis within other income, gains or loss - net. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified as fair value through other comprehensive income are recognized in other comprehensive income. Group companies The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ● assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet ● income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and ● all resulting exchange differences are recognized in other comprehensive income. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. |
Derivative financial instruments | 3.2.5 Derivative financial instruments The Group’s derivative financial instruments are initially recognized at fair value on the date of which the related derivative contracts are entered into and are subsequently measured at fair value. All derivatives are carried as assets when the fair values are positive and as liabilities when the fair values are negative. The gains or losses arisen from fair value changes of derivatives are recognized in profit or loss. No derivative financial instruments are designated as hedging instrument. |
Trade receivables | 3.2.6 Trade receivables Trade receivables are amounts due from customers for products sold or services performed in the ordinary course of business. If collection of trade and other receivables is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are recognized initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognized at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method. See Note 19 for further information about the Group’s accounting for trade receivables and Note 5 and Note 3.1.4 for a description of the Group’s impairment policies. |
Cash and cash equivalents | 3.2.7 Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
Share capital | 3.2.8 Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Leases | 3.2.9 Leases The Group leases various properties. Rental contracts are typically made for fixed periods of 1 to 5 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: ● fixed payments (including in-substance fixed payments), less any lease incentives receivable ● variable lease payment that are based on an index or a rate ● amounts expected to be payable by the lessee under residual value guarantees ● the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and ● payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the group’s incremental borrowing rate. Right-of-use assets are measured at cost comprising the following: ● the amount of the initial measurement of lease liability ● any lease payments made at or before the commencement date less any lease incentives received ● any initial direct costs, and ● restoration costs. Right-of-use assets related to lease of properties are recorded under property and equipment (Note 13). Lease liabilities are recorded under trade and other payables (Note 28). Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. |
Property and equipment | 3.2.10 Property and equipment Property and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attribute to the acquisition of the items. Depreciation on property and equipment is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives or, in case of a leasehold improvements, the shorter lease term as follows: Category Expected useful life Office and telecommunication equipment 3-5 years Leasehold improvements 5 years The assets’ residual values and useful lives are reviewed, and adjusted quarterly if appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within ‘Other income, gains or loss - net’ in the consolidated statements of comprehensive income. |
Financial liabilities | 3.2.11 Financial liabilities The Group, at initial recognition, classifies financial liabilities as either financial liabilities subsequently measured at amortised cost or financial liabilities at fair value through profit or loss. Except for derivative financial instruments (Note 3.2.5), the Group’s financial liabilities are mainly financial liabilities measured at amortised cost, including trade and other payables, short-term borrowings, customer deposits and other financial liabilities from virtual bank, etc. These financial liabilities are initially measured at the amount of their fair value after deducting transaction costs and use the effective interest rate method for subsequent measurement. Where the present obligations of financial liabilities are discharged, cancelled or when they are expired, the Group derecognizes these financial liabilities. The differences between the carrying amounts and the consideration received are recognized in profit or loss. Financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. |
Employee benefits | 3.2.12 Employee benefits (a) Pension obligations The employees of the Group are mainly covered by various defined contribution pension plans. The Group makes and accrues contributions on a monthly basis to the pension plans, which are mainly sponsored by the related government authorities that are responsible for the pension liability to retired employees. Under such plans, the Group has no other significant legal or constructive obligations for retirement benefits beyond the said contributions, which are expensed as incurred. Certain employees are also provided with group life insurance but the amounts involved are insignificant. (b) Housing benefits The employees of the Group are entitled to participate in various government-sponsored housing funds. The Group contributes on a monthly basis to these funds based on certain percentages of the salaries of the employees. The Group’s liability in respect of these funds is limited to the contributions payable in each period. (c) Medical benefits The Group makes monthly contributions for medical benefits to the local authorities in accordance with relevant local regulations for the employees. The Group’s liability in respect of employee medical benefits is limited to the contributions payable in each period. |
Interest income | 3.2.13 Interest income Interest income from virtual bank is included in the revenue (Note 6). Interest income from financial assets that are held for cash management purposes is included in finance income, see finance income (Note 10) below. Interest income from financial assets at FVPL and any other interest income is included in the net gains/(losses), see other income (Note 9) below. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit-impaired financial assets the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance). |
Dividend income | 3.2.14 Dividend income Dividend income is recognized when the right to receive payment is established. |
Government grants | 3.2.15 Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to costs are deferred and recognized in the income statement over the period necessary to match them with the costs that they are intended to compensate. |
General information and basis_2
General information and basis of presentation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
General information and basis of presentation | |
Schedule of direct or indirect interests in major subsidiaries | Equity interest held Place and date of Principal activities Issued and by the Group incorporation/ and place of paid-in capital/ As at December 31 Company name establishment operations Registered capital 2022 2023 Note Subsidiaries Jin Tai Yuan Limited British Virgin Islands /October 27, 2017 Investment holding, BVI USD747,940,498 100 % 100 % Jin Cheng Long Limited Hong Kong /October 30, 2017 Investment holding, Hong Kong, the PRC. USD747,940,498 100 % 100 % OneConnect Financial Technology (Hong Kong) Limited Hong Kong /March 15, 2018 Software and technology service, information transmission, Hong Kong, the PRC. USD1 100 % 100 % OneConnect Financial Technology (Singapore) Co., Pte. Ltd. Singapore /March 26, 2018 Software and technology service, information transmission, Singapore. SGD47,900,000 100 % 100 % PT OneConnect Financial Technology Indonesia Indonesia/December 04, 2018 Software and technology service, information transmission, Indonesia. IDR10,000,000,000 100 % 100 % Ping An OneConnect Bank (Hong Kong) Limited (“OneConnect Bank”) Hong Kong/December 07, 2018 Banking service, Hong Kong, the PRC. USD38,216,561 and HKD 1,200,000,000 100 % 100 % Shenzhen OneConnect Technology Services Co.,Ltd(“Shenzhen OneConnect Technology”) the PRC /January 04, 2018 Technology promotion and computer application services, Shenzhen, the PRC. RMB4,903,181,996/RMB4,960,000,000 100 % 100 % Equity interest held Place and date of Issued and by the Group incorporation/ Principal activities and paid-in capital/ As at December 31 Company name establishment place of operations Registered capital 2022 2023 Note Subsidiaries (Continued) Beijing Vantage Point Technology Co., Ltd. (“Vantage Point Technology”) the PRC /July 18, 2008 Software and technology service, information transmission, Beijing, the PRC. RMB13,333,529 51.67 % 51.67 % (i) Shenzhen OneConnect Information Technology Service Company Limited (“Shenzhen OneConnect Information Technology”) the PRC/January 31, 2019 Software and technology service, information transmission, Shenzhen, the PRC. RMB100,000,000 51 % 51 % Beijing BER Technology Company Ltd. (“BER Technology”) the PRC/March 30,2006 Software and technology service, information transmission, Shenzhen, the PRC. RMB22,950,000 80 % 100 % (i) Zhang Tong Shun (Guangzhou) Technology Co., Ltd. (“Zhang Tong Shun”) the PRC/May 9, 2019 Information technology advisory services, Guangzhou, the PRC. RMB10,000,000 100 % 100 % (i) VIEs OneConnect Smart Technology Co., Ltd. (Shenzhen) (“Shenzhen OneConnect”) the PRC / September 15, 2017 Software and technology service, information transmission, Shenzhen, the PRC. RMB1,200,000,000 100 % 100 % Shenzhen E-Commerce Safety Certificates Administration Co., Ltd. (“Shenzhen CA”) the PRC/August 11, 2000 E-commerce security certificate administration, Shenzhen, the PRC. RMB543,500,000 98.9 % 98.9 % (i) Subsidiaries of the VIEs Shanghai OneConnect Financial Technology Co., Ltd. (“Shanghai OneConnect”) * the PRC / December 29, 2015 Software and technology service, asset management and consulting, Shanghai, the PRC. RMB1,200,000,000 100 % 100 % Shenzhen Kechuang Insurance Assessment Co., Ltd. (“Kechuang”) * the PRC / August 27, 2001 Insurance survey and loss adjustment, Shenzhen, the PRC. RMB4,000,000 100 % 100 % Shenzhen OneConnect Chuangpei Technology Co., Ltd. (“Chuangpei”) * the PRC / June 1, 2016 Software and technology service, information transmission, Shenzhen, the PRC. RMB10,000,000 100 % 100 % Zhuhai Yirongtong Asset Management Co., Ltd. (“Yirongtong”) * the PRC / June 21, 2016 Asset management and consulting, Zhuhai, the PRC. RMB12,000,000 100 % 100 % Ping An OneConnect Cloud Technology Co., Ltd. (“OneConnect Cloud Technology”) the PRC / June 27, 2016 Software and technology service, information transmission, Shenzhen, the PRC. RMB500,000,000 100 % 100 % * Subsidiaries of Shenzhen OneConnect Note: (i) The subsidiaries were acquired by the Group through business combination. |
Schedule of major financial statements amounts and balances of the Group's VIEs and subsidiaries of VIEs | As at December 31, 2022 2023 RMB’000 RMB’000 Total current assets 3,865,127 3,058,529 Total non‑current assets 906,455 603,914 Total assets 4,771,582 3,662,443 Total current liabilities 7,645,984 6,676,641 Total non‑current liabilities 27,902 24,291 Total liabilities 7,673,886 6,700,932 For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Total revenue 3,723,306 4,064,707 3,261,285 Net loss (708,699) (195,819) (68,079) Net cash used in operating activities (439,174) (618,574) (149,778) Net cash generated from investing activities 3,633 918,498 75,598 Net cash generated from/ (used in) financing activities 108,564 368,778 (508,121) Net (decrease)/increase in cash and cash equivalents (326,977) 668,702 (582,301) Cash and cash equivalents, beginning of the year 564,527 237,550 906,252 Cash and cash equivalents, end of the year 237,550 906,252 323,951 |
Summary of accounting policy _3
Summary of accounting policy information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of accounting policy information | |
Schedule of useful lives of intangible assets | Expected useful life ● 3 - 10 years ● 3 - 10 years ● 3 - 5 years |
Schedule of expected useful life of property and equipment | Category Expected useful life Office and telecommunication equipment 3-5 years Leasehold improvements 5 years |
Management of financial risk (T
Management of financial risk (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Management of financial risk | |
Schedule of tabular disclosure of contract asset and trade receivable | As at December 31, 2022 RMB’000 RMB’000 RMB’000 Trade Contract receivables assets Total Gross carrying amount Applying simplified approach 998,036 182,480 1,180,516 Loss allowance Applying simplified approach 57,047 59,852 116,899 As at December 31, 2023 RMB’000 RMB’000 RMB’000 Trade Contract receivables assets Total Gross carrying amount Applying simplified approach 779,458 153,204 932,662 Loss allowance Applying simplified approach 68,789 57,379 126,168 |
Schedule of impairment loss allowance | As at December 31, 2022 Related Up to 1 year to 2 year to Above parties 1 year 2 year 3 year 3 years Total Expected loss rate 2.27 % 3.33 % 42.80 % 68.40 % 97.75 % 9.90 % Gross carrying amount of trade receivables and contract assets applying simplified approach 391,221 657,723 63,170 26,482 41,920 1,180,516 Loss allowance of trade receivables and contract assets applying simplified approach 8,888 21,885 27,038 18,113 40,975 116,899 As at December 31, 2023 Related Up to 1 year to 2 year to Above parties 1 year 2 year 3 year 3 years Total Expected loss rate 2.13 % 4.56 % 41.29 % 77.39 % 94.34 % 13.53 % Gross carrying amount of trade receivables and contract assets applying simplified approach 306,636 476,215 72,327 29,615 47,869 932,662 Loss allowance of trade receivables and contract assets applying simplified approach 6,528 21,698 29,863 22,920 45,159 126,168 |
Schedule of undiscounted contractual cash flows | As at December 31, 2022 Within 1 year 1 to 5 years Total RMB’000 RMB’000 RMB’000 Short‑term borrowings 294,461 — 294,461 Trade and other payables 1,236,571 139,387 1,375,958 - Including: lease liabilities 50,862 47,093 97,955 Other financial liabilities from virtual bank 89,327 — 89,327 Customer deposits 1,929,183 — 1,929,183 Non ‑ derivative financial liabilities 3,549,542 139,387 3,688,929 Gross settled (foreign currency swaps) - (inflow) (198,722) — (198,722) - outflow 208,290 — 208,290 Derivative financial liabilities 9,568 — 9,568 Total 3,559,110 139,387 3,698,497 As at December 31, 2023 Within 1 year 1 to 5 years Total RMB’000 RMB’000 RMB’000 Short‑term borrowings 257,007 — 257,007 Trade and other payables 1,292,054 30,143 1,322,197 - Including: lease liabilities 24,829 30,143 54,972 Other financial liabilities from virtual bank 54,373 — 54,373 Customer deposits 2,269,261 — 2,269,261 Non ‑ derivative financial liabilities 3,872,695 30,143 3,902,838 |
Schedule of fair value measurement hierarchy of the Group's financial assets and liabilities | As at December 31, 2022 Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000 Assets measured at fair value Financial assets at fair value through profit or loss (Note 22) — 690,627 — 690,627 Financial assets measured at fair value through other comprehensive income (Note 17) 442,935 — 1,611,606 2,054,541 Derivative financial assets (Note 32) — 56,363 — 56,363 Financial liabilities Derivative financial liabilities (Note 32) — 9,568 — 9,568 As at December 31, 2023 Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000 Assets measured at fair value Financial assets at fair value through profit or loss (Note 22) — 925,204 — 925,204 Financial assets measured at fair value through other comprehensive income (Note 17) 319,949 — 1,906,189 2,226,138 Derivative financial assets (Note 32) — 38,008 — 38,008 |
Schedule of movements of Level 3 financial instruments measured at fair value | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year 5,676 1,107,340 1,611,606 Additions, net 1,103,460 506,620 295,287 Losses recognized in other comprehensive income (1,796) (1,678) (789) (Losses)/gain recognized in profit or loss — (676) 85 End of the year 1,107,340 1,611,606 1,906,189 |
Schedule of valuation inputs and relationships to fair value | Unobservable inputs Range of inputs 2022 2023 Financial assets measured at fair value through other comprehensive income -Loans and advances to customers from virtual bank Discount rate 5.66% - 9.30 % 7.09% - 10.29 % Prepayment ratio 0.34% - 0.38 % 0.36 % Unobservable inputs Impact on the assets and other comprehensive income 2022 2023 -Loans and advances to customers from virtual bank Discount rate +5 % (5,941) (8,845) -5 % 5,975 8,926 Prepayment ratio +5 % (283) (315) -5 % 283 315 |
Currency risk | |
Management of financial risk | |
Schedule of sensitivity analysis | At December 31, 2021 2022 2023 Impact on post tax profit RMB’000 RMB’000 RMB’000 USD+5% (4,028) 1,752 (16,596) USD -5% 4,028 (1,752) 16,596 |
Interest rate risk | |
Management of financial risk | |
Schedule of sensitivity analysis | As at December 31, 2023 RMB million HKD USD RMB Impact on earnings over the next 12 months if interest rates rise by 200 basis points (15) 3 — Impact on economic value if interest rates rise by 200 basis points (43) (3) — As at December 31, 2022 RMB million HKD USD RMB Impact on earnings over the next 12 months if interest rates rise by 200 basis points (9) 9 1 Impact on economic value if interest rates rise by 200 basis points (25) (1) — |
Trade receivable and contract asset | |
Management of financial risk | |
Schedule of movements in the impairment loss allowance | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year (97,243) (125,318) (116,899) Additions of impairment loss, net (71,061) (18,715) (42,102) Recovery of amounts written off previously — (9,980) — Write-off 42,986 37,156 33,402 Exchange difference — (42) (569) End of the year (125,318) (116,899) (126,168) |
Credit risk exposure of other receivables is mainly from financial guarantee fee receivables | As at December 31, 2022 2023 RMB’000 RMB’000 Gross carrying amount Financial assets measured at amortized cost 44 3,142 Financial assets measured at fair value through other comprehensive income 1,608,402 1,902,985 1,608,446 1,906,127 Expected credit loss provision — 61 Expected loss rate — 1.94 % |
Contract assets of transaction based and support service | |
Management of financial risk | |
Schedule of movements in the impairment loss allowance | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year (711) (190) — (Additions)/Reversals of impairment loss (1,170) 190 (61) Write‑off 1,691 — — End of the year (190) — (61) |
Loans and advances to customers. | |
Management of financial risk | |
Schedule of movements in the impairment loss allowance | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year (712) (1,962) (11,528) Additions of impairment loss (1,250) (10,616) (13,344) Write-off — 1,050 12,811 End of the year (1,962) (11,528) (12,061) |
Segment information and reven_2
Segment information and revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment information and revenue | |
Schedule of segments and principal activities | Year ended December 31, 2021 Intersegment eliminations Virtual Bank Technology and Business Solutions adjustments Consolidated RMB’000 RMB’000 RMB’000 RMB’000 Revenue 34,320 4,098,734 (697) 4,132,357 Cost of revenue (37,748) (2,658,655) 697 (2,695,706) Gross profit (3,428) 1,440,079 — 1,436,651 Research and development expenses (33,192) (1,319,826) — (1,353,018) Selling and marketing expenses (38,042) (550,338) — (588,380) General and administrative expenses (99,796) (741,889) — (841,685) Net impairment losses on financial and contract assets (1,250) (70,979) — (72,229) Other income, gains or loss-net 91 13,830 — 13,921 Operating loss (175,617) (1,229,123) — (1,404,740) Finance income — 28,823 — 28,823 Finance costs (310) (76,327) — (76,637) Finance costs – net (310) (47,504) — (47,814) Share of gain of associate and joint venture — 9,946 — 9,946 Loss before income tax (175,927) (1,266,681) — (1,442,608) ASSETS Segment Assets 2,032,344 7,377,469 (1,041,585) 8,368,228 Goodwill — 289,161 — 289,161 Deferred income tax assets — 683,218 — 683,218 Total assets 2,032,344 8,349,848 (1,041,585) 9,340,607 LIABILITIES Segment Liabilities 1,459,125 4,097,004 (60,465) 5,495,664 Deferred income tax liabilities — 9,861 — 9,861 Total Liabilities 1,459,125 4,106,865 (60,465) 5,505,525 Other segment information Depreciation of property and equipment 14,195 121,780 — 135,975 Amortization of intangible assets 20,356 282,418 — 302,774 Additions of non-current assets except for goodwill and deferred income tax assets 44,107 201,940 — 246,047 Year ended December 31, 2022 Intersegment eliminations Virtual Bank Technology and Business Solutions adjustments Consolidated RMB’000 RMB’000 RMB’000 RMB’000 Revenue 106,540 4,360,546 (3,084) 4,464,002 Cost of revenue (56,716) (2,775,354) 3,084 (2,828,986) Gross profit 49,824 1,585,192 — 1,635,016 Research and development expenses (18,276) (1,399,415) — (1,417,691) Selling and marketing expenses (41,408) (369,948) — (411,356) General and administrative expenses (114,546) (710,165) — (824,711) Net impairment losses on financial and contract assets (10,616) (23,023) — (33,639) Other income, gains or loss-net (544) 71,362 — 70,818 Operating loss (135,566) (845,997) — (981,563) Finance income — 14,709 — 14,709 Finance costs (354) (36,819) — (37,173) Finance costs – net (354) (22,110) — (22,464) Share of gain of associate and joint venture — 24,852 — 24,852 Impairment charges on associate — (10,998) — (10,998) Loss before income tax (135,920) (854,253) — (990,173) ASSETS Segment Assets 2,851,885 6,330,769 (1,355,392) 7,827,262 Goodwill — 289,161 — 289,161 Deferred income tax assets — 765,959 — 765,959 Total assets 2,851,885 7,385,889 (1,355,392) 8,882,382 LIABILITIES Segment Liabilities 2,093,126 3,521,957 (15,952) 5,599,131 Deferred income tax liabilities — 5,196 — 5,196 Total Liabilities 2,093,126 3,527,153 (15,952) 5,604,327 Other segment information Depreciation of property and equipment 13,191 106,118 — 119,309 Amortization of intangible assets 26,909 135,212 — 162,121 Additions of non-current assets except for goodwill and deferred income tax assets 45,737 98,740 — 144,477 Year ended December 31, 2023 Intersegment eliminations Virtual Bank Technology and Business Solutions adjustments Consolidated RMB’000 RMB’000 RMB’000 RMB’000 Revenue 145,917 3,533,276 (11,685) 3,667,508 Cost of revenue (134,214) (2,195,574) 11,685 (2,318,103) Gross profit 11,703 1,337,702 — 1,349,405 Research and development expenses — (955,201) — (955,201) Selling and marketing expenses (33,739) (241,612) — (275,351) General and administrative expenses (129,842) (375,128) — (504,970) Net impairment losses on financial and contract assets (13,406) (40,544) — (53,950) Other income, gains or loss-net 2,672 69,183 — 71,855 Operating loss (162,612) (205,600) — (368,212) Finance income — 29,580 — 29,580 Finance costs (446) (20,086) — (20,532) Finance costs – net (446) 9,494 — 9,048 Share of gain of associate and joint venture — 4,607 — 4,607 Impairment charges on associate — (7,157) — (7,157) Loss before income tax (163,058) (198,656) — (361,714) ASSETS Segment Assets 2,994,772 5,399,653 (1,383,504) 7,010,921 Goodwill — 289,161 — 289,161 Deferred income tax assets — 768,276 — 768,276 Total assets 2,994,772 6,457,090 (1,383,504) 8,068,358 LIABILITIES Segment Liabilities 2,388,056 2,754,711 (24,280) 5,118,487 Deferred income tax liabilities — 2,079 — 2,079 Total Liabilities 2,388,056 2,756,790 (24,280) 5,120,566 Other segment information Depreciation of property and equipment 6,179 68,729 — 74,908 Amortization of intangible assets 34,687 91,746 — 126,433 Additions of non-current assets except for goodwill and deferred income tax assets 23,549 35,532 — 59,081 |
Schedule of disaggregation of revenue from contracts with customers | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 - Technology Solutions Implementation 733,648 861,820 834,620 Transaction based and support revenue - Operation support services 1,097,719 1,140,727 861,056 - Business origination services 450,597 383,723 132,112 - Risk management services 534,071 414,849 320,462 - Cloud services platform 1,050,179 1,315,819 1,245,952 - Post‑implementation support services 49,447 50,983 52,012 - Others 182,376 189,541 75,377 4,098,037 4,357,462 3,521,591 |
Schedule of disaggregation of revenue by timing of transfer of services over time or at a point in time | At a point in time Over time Total Year ended December 31, 2021 Implementation — 733,648 733,648 Transaction based and support revenue - Operation support services 399,523 698,196 1,097,719 - Business origination services 450,597 — 450,597 - Risk management services 534,071 — 534,071 - Cloud services platform — 1,050,179 1,050,179 - Post‑implementation support services — 49,447 49,447 - Others 181,004 1,372 182,376 1,565,195 2,532,842 4,098,037 At a point in time Over time Total Year ended December 31, 2022 Implementation 36,266 825,554 861,820 Transaction based and support revenue - Operation support services 376,784 763,943 1,140,727 - Business origination services 383,723 — 383,723 - Risk management services 414,849 — 414,849 - Cloud services platform — 1,315,819 1,315,819 - Post-implementation support services — 50,983 50,983 - Others 189,366 175 189,541 1,400,988 2,956,474 4,357,462 At a point in time Over time Total Year ended December 31, 2023 Implementation 37,804 796,816 834,620 Transaction based and support revenue - Operation support services 240,366 620,690 861,056 - Business origination services 132,112 — 132,112 - Risk management services 320,462 — 320,462 - Cloud services platform — 1,245,952 1,245,952 - Post-implementation support services — 52,012 52,012 - Others 75,285 92 75,377 806,029 2,715,562 3,521,591 |
Schedule of major customers, the parties to whom service fees were charged | For the year ended December 31, 2021 2022 2023 % of total % of total % of total revenue revenue revenue Ping An Group and its subsidiaries 56.03 % 56.60 % 57.02 % Lufax Holding Ltd (“Lufax” and its subsidiaries) 11.15 % 10.29 % 7.46 % 67.18 % 66.89 % 64.48 % |
Schedule of major customers, the parties to whom service fees were charged on loans facilitated | For the year ended December 31, 2021 2022 2023 % of total % of total % of total revenue revenue revenue Ping An Group and its subsidiaries 56.03 % 56.60 % 57.02 % Lufax Holding Ltd (“Lufax” and its subsidiaries) 11.15 % 10.29 % 7.46 % 67.18 % 66.89 % 64.48 % |
Schedule of interest and commission income | For the year ended December 31, 2021 2022 2023 RMB ’ 000 RMB ’ 000 RMB ’ 000 – Interest and commission income 34,320 106,540 145,917 |
Schedule revenue related contract assets and liabilities | At December 31, 2022 2023 RMB’000 RMB’000 Contract assets -Implementation 163,769 137,566 -Transaction based and support 18,711 15,638 - Business origination services 1,404 — - Operation support services 12,085 12,149 - Post implementation support services 5,222 3,489 182,480 153,204 Less: Impairment loss allowance -Implementation (52,385) (50,712) -Transaction based and support (7,467) (6,667) - Operation support services (4,779) (4,750) - Post implementation support services (2,688) (1,917) (59,852) (57,379) 122,628 95,825 At December 31, 2022 2023 RMB’000 RMB’000 Contract liabilities -Implementation 42,014 37,427 -Transaction based and support 144,613 118,262 -Post implementation support services 21,679 10,609 -Risk management services 20,997 18,801 -Operation support services 87,562 69,825 -Others 14,375 19,027 186,627 155,689 Less: Non‑current contract liabilities (19,977) (17,126) 166,650 138,563 |
Schedule of Revenue recognized in relation to contract liabilities | For the year ended Revenue recognized in relation to contract liabilities December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Revenue recognized that was included in the contract liability balance at the beginning of the year 138,547 153,844 166,650 |
Schedule of remaining performance obligations of long-term contracts | Remaining performance obligations of long-term contracts For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Aggregate amount of the transaction price allocated to long ‑ term contracts that are partially or fully unsatisfied at the end of each year Expected to be recognized within one year 455,294 670,991 386,278 Expected to be recognized in one to two years 89,762 237,126 112,605 Expected to be recognized in two to three years 33,937 99,208 38,900 Expected to be recognized beyond three years 31,523 44,365 13,992 610,516 1,051,690 551,775 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Expenses by nature | |
Schedule of expenses by nature | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Technology service fees 2,021,238 2,261,498 1,689,549 Employee benefit expenses (Note 8) 1,629,375 1,601,989 1,302,848 Outsourcing labor costs 437,081 528,582 426,148 Amortization of intangible assets (Note 14) 302,774 162,121 126,433 Depreciation of property and equipment (Note 13) 135,975 119,309 74,908 Purchase costs of products 176,224 183,956 60,902 Business origination fees to channel partners 276,966 251,427 53,419 Travelling expenses 76,987 38,873 40,633 Marketing and advertising fees 110,775 50,246 38,183 Professional service fees 48,001 50,596 32,564 Auditor’s remuneration —Audit related 14,657 16,501 17,961 —Non-audit 1,957 3,150 1,693 Impairment loss of intangible assets (Note 14) 5,646 10,208 5,851 Listing expenses 12,467 69,857 — Others 228,666 134,431 182,533 Total cost of revenue, research and development expenses, selling and marketing expenses, general and administrative expenses 5,478,789 5,482,744 4,053,625 |
Schedule of research and development costs | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Research and development costs - Employee benefit expenses 514,456 469,320 351,475 - Technology service fees 859,324 946,700 597,244 - Amortization of intangible assets 3,396 6,282 4,438 - Depreciation of property and equipment 11,182 14,168 7,023 - Impairment loss of intangible assets 3,747 3,837 2,004 - Others 23,200 22,334 14,726 Amounts incurred 1,415,305 1,462,641 976,910 Less: capitalized - Employee benefit expenses (45,016) (19,827) (3,892) - Technology service fees (17,271) (25,123) (17,817) (62,287) (44,950) (21,709) 1,353,018 1,417,691 955,201 |
Employee benefit expenses (Tabl
Employee benefit expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee benefit expenses | |
Schedule of employee benefit expenses | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Wages and salaries 1,276,205 1,235,714 971,060 Welfare and other benefits 330,552 353,099 319,671 Share‑based payments (Note 27) 22,618 13,176 12,117 1,629,375 1,601,989 1,302,848 |
Other income, gains or loss -_2
Other income, gains or loss - net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other income, gains or loss - net | |
Schedule of other income, gains or loss | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Net foreign exchange gain/ (loss) 77,143 (312,843) (11,171) Government grants and tax rebates (Note a) 51,080 58,013 41,454 Net gain on financial assets at fair value through profit or loss 45,644 30,687 20,007 Loss on disposal of property and equipment and intangible asset (266) (6,198) (6,058) Remeasurement of redemption liability (Note 28(ii)) — 37,874 — Guarantee gain, net 10,757 — — Net (loss)/gain on derivatives (169,545) 262,769 30,592 Others (892) 516 (2,969) 13,921 70,818 71,855 (a) Government grants and tax rebates Government grants and tax rebates were related to income. There were no unfulfilled conditions or contingencies related to these subsidies. For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Government grants 28,871 27,421 23,922 - Technology development incentives 14,391 10,493 12,906 - Operation subsidies 14,480 16,928 11,016 Tax rebates 22,209 30,592 17,532 51,080 58,013 41,454 |
Finance costs - net (Tables)
Finance costs - net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finance costs - net | |
Schedule of net finance costs | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Finance income Interest income on bank deposits 28,823 14,709 29,580 Finance costs Interest expense on borrowings (56,534) (17,303) (12,073) Interest expense on lease liabilities (5,803) (7,578) (3,448) Interest expense on redemption liability (12,406) (10,287) (4,014) Bank charges (1,894) (2,005) (997) (76,637) (37,173) (20,532) (47,814) (22,464) 9,048 |
Income tax benefit_(expense) (T
Income tax benefit/(expense) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income tax benefit/(expense) | |
Schedule of income tax benefit | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Current income tax (16,780) (25,259) (15,196) Deferred income tax 128,875 87,406 5,434 Income tax benefit/ (expense) 112,095 62,147 (9,762) |
Schedule of tax on the Group's loss before income tax differs from the theoretical amount statutory tax rate applicable to loss of the consolidated entities | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Loss before income tax 1,442,608 990,173 361,714 Tax calculated at PRC statutory income tax rate of 25% 360,652 247,543 90,429 Differential of income tax rates applicable to subsidiaries (161,199) (119,211) (36,590) Expense not deductible for tax purposes (10,169) (5,659) (3,863) Incomes not subject to tax 1,732 542 191 Tax losses and temporary differences for which no deferred income tax asset was recognized (87,237) (73,690) (73,942) Derecognition of deferred tax assets on tax losses (23) — — Additional deductible allowance for research and development expenses 8,255 10,164 12,474 Utilization of previously unrecognized tax losses 84 2,458 1,539 Income tax benefit/ (expense) 112,095 62,147 (9,762) |
Schedule of unused tax losses | At December 31, 2022 2023 RMB’000 RMB’000 Unused tax losses for which no deferred tax asset has been recognized 2,248,748 2,695,910 |
Schedule of unused tax losses by expiration date | At December 31, 2022 2023 RMB’000 RMB’000 Year 2023 118,796 — Year 2024 419,866 419,866 Year 2025 83,576 83,576 Year 2026 208,346 208,346 Year 2027 67,745 67,745 Year 2028 1,826 113,129 Year 2029 7,149 7,149 Year 2030 8,049 8,049 Year 2031 56,195 56,195 Year 2032 122,036 122,036 Year 2033 — 220,273 |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loss per share | |
Schedule of loss per share | Year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Net loss for the year attributable to owners of the Company (1,281,699) (872,274) (362,715) Weighted average number of ordinary shares in issue (in’000 shares) 1,108,291 1,094,748 1,089,589 Basic loss per share (RMB yuan) (1.16) (0.80) (0.33) Diluted loss per share (RMB yuan) (1.16) (0.80) (0.33) Basic loss per ADS (RMB yuan) (Note) (34.69) (23.90) (9.99) Diluted loss per ADS (RMB yuan) (Note) (34.69) (23.90) (9.99) |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and equipment. | |
Schedule of property and equipment | Office and telecommunication Right ‑ of ‑ use Leasehold equipment properties improvements Total RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2022 Cost 126,626 461,605 108,805 697,036 Accumulated depreciation (65,102) (316,267) (65,625) (446,994) Exchange difference (3,076) (1,337) (1,217) (5,630) Net book amount 58,448 144,001 41,963 244,412 Year ended December 31, 2022 Opening net book amount 58,448 144,001 41,963 244,412 Additions 15,481 76,534 6,585 98,600 Disposals, net (9,467) (57,952) (8,292) (75,711) Depreciation charge (23,027) (75,519) (20,763) (119,309) Exchange difference 420 2,510 479 3,409 Closing net book amount 41,855 89,574 19,972 151,401 As at December 31, 2022 Cost 120,373 358,173 115,390 593,936 Accumulated depreciation (75,862) (269,772) (94,680) (440,314) Exchange difference (2,656) 1,173 (738) (2,221) Net book amount 41,855 89,574 19,972 151,401 Year ended December 31, 2023 Opening net book amount 41,855 89,574 19,972 151,401 Additions 2,987 21,612 2,994 27,593 Disposals, net (877) (17,718) (696) (19,291) Depreciation charge (18,761) (45,082) (11,065) (74,908) Exchange difference 42 186 53 281 Closing net book amount 25,246 48,572 11,258 85,076 As at December 31, 2023 Cost 111,470 303,092 118,384 532,946 Accumulated depreciation (83,610) (255,879) (106,441) (445,930) Exchange difference (2,614) 1,359 (685) (1,940) Net book amount 25,246 48,572 11,258 85,076 |
Schedule of approximate depreciation charge | Year ended December 31, 2022 2023 RMB’000 RMB’000 Cost of revenue 2,750 6,747 Research and development expenses 14,168 7,023 Selling and marketing expenses 4,814 4,306 General and administrative expenses 97,577 56,832 119,309 74,908 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets. | |
Schedule of intangible assets | Application and platform Contributed Development by Ping Developed Purchased costs in Business An Group internally Acquired Software progress Goodwill license Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Year ended December 31, 2022 Opening net book amount — 226,943 2,231 27,041 45,389 289,161 92,341 4,088 687,194 Additions — — — 927 44,950 — — — 45,877 Write-off — (6,371) — — (3,837) — — — (10,208) Transfer — 58,528 — — (58,528) — — — — Amortization — (110,801) (2,231) (15,729) — — (31,315) (2,045) (162,121) Exchange differences — 7,907 — 582 1,205 — — — 9,694 Closing net book amount — 176,206 — 12,821 29,179 289,161 61,026 2,043 570,436 As at December 31, 2022 Cost 690,910 773,332 61,078 149,734 28,699 289,161 155,492 80,263 2,228,669 Accumulated amortization (690,910) (602,065) (61,078) (136,885) — — (94,466) (78,220) (1,663,624) Exchange differences — 4,939 — (28) 480 — — — 5,391 Net book amount — 176,206 — 12,821 29,179 289,161 61,026 2,043 570,436 Application and platform Contributed Development by Ping Developed Purchased costs in Business An Group internally Acquired Software progress Goodwill license Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Year ended December 31, 2023 Opening net book amount — 176,206 — 12,821 29,179 289,161 61,026 2,043 570,436 Additions — — — 9,779 21,709 — — — 31,488 Write-off — (1,400) — — (4,451) — — — (5,851) Transfer — 30,764 — — (30,764) — — — — Amortization — (77,975) — (15,509) — — (30,906) (2,043) (126,433) Exchange differences — 1,265 — 138 328 — — — 1,731 Closing net book amount — 128,860 — 7,229 16,001 289,161 30,120 — 471,371 As at December 31, 2023 Cost 690,910 802,696 61,078 159,513 15,193 289,161 155,492 80,263 2,254,306 Accumulated amortization (690,910) (680,040) (61,078) (152,394) — — (125,372) (80,263) (1,790,057) Exchange differences — 6,204 — 110 808 — — — 7,122 Net book amount — 128,860 — 7,229 16,001 289,161 30,120 — 471,371 |
Schedule of amortization expense | Year ended December 31, Amortization of intangible assets 2021 2022 2023 RMB’000 RMB’000 RMB’000 Cost of revenue 297,406 146,466 114,512 Research and development expenses 3,396 6,282 4,438 General and administrative expenses 1,972 9,373 7,483 302,774 162,121 126,433 |
Schedule of key assumptions used for value-in-use calculations | For the year ended December 31, 2022 2023 RMB’000 RMB’000 Revenue growth rate -15%-13 % -10%-13 % Profit margin -15%-10 % -2%-14 % Long term growth rate 2 % 2 % Pre-tax discount rate 17.50 % 19.73 % Recoverable amount of the CGU exceeding its carrying amount (RMB’000) 781,499 1,153,821 |
Schedule of possible changes of key assumptions | Possible changes of significant assumptions Recoverable amount of the CGU exceeding its carrying amount Year ended December 31, 2022 2023 RMB ’ 000 RMB ’ 000 Revenue growth rate decrease by 5% 373,790 597,067 Profit margin decrease by 1% 459,556 886,786 Long term growth rate decrease by 1% 669,058 1,039,101 Pre-tax discount rate increase by 1% 616,950 989,962 |
Investments accounted for usi_2
Investments accounted for using the equity method (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments accounted for using the equity method | |
Schedule of investment in associate and percentage of equity interest held in associate | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 At beginning of year 172,757 184,907 199,200 Share of gain of associate 12,150 25,291 7,157 Impairment charges on associate — (10,998) (7,157) Disposal — — (199,200) At end of the year 184,907 199,200 — |
Schedule of Summarised financial information for associate | Summarised balance sheet As at December 31, 2021 2022 2023 RMB ’ 000 RMB ’ 000 RMB ’ 000 Total assets 1,075,852 1,686,575 * Total liabilities (682,979) (1,230,475) * Net assets 392,873 456,100 * Summarised income statement For the year ended December 31, 2021 2022 2023 RMB ’ 000 RMB ’ 000 RMB ’ 000 Operating income 96,372 144,762 * Profit or loss from continuing operations 30,375 63,228 * Group ’ 40 % 40 % * Group’s share in net assets 157,149 182,440 * Goodwill 27,758 27,758 * 184,907 210,198 * Less: impairment charges on associate — (10,998) * Carrying amount 184,907 199,200 * *2023 information not presented as the associate was disposed of as described above. |
Schedule of Investment in joint venture and percentage of equity interest held in joint venture | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 At beginning of year 2,976 439 — Additions — — 2,550 Share of losses of joint venture (2,204) (439) (2,550) Exchange difference (333) — — At end of the year 439 — — |
Financial instruments by cate_2
Financial instruments by category (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments by category | |
Schedule of financial instruments | As at December 31, Note 2022 2023 RMB’000 RMB’000 Financial assets Financial assets at amortized cost - Trade receivables 19 940,989 710,669 - Prepayments and other receivables (excluding non-financial asset items) 20 816,179 661,123 - Financial assets measured at amortized cost from virtual bank 21 44 3,081 - Restricted cash and time deposits over three months 23 343,814 447,564 - Cash and cash equivalents 24 1,907,776 1,379,473 Financial assets measured at fair value through other comprehensive income (FVOCI) 17 2,054,541 2,226,138 Financial assets at fair value through profit or loss (FVPL) 22 690,627 925,204 Derivative financial asset - Held at FVPL 32 56,363 38,008 Total 6,810,333 6,391,260 Financial liabilities Liabilities at amortized cost - Trade and other payables (excluding non-financial liability items) 28 1,355,329 1,318,449 - Short-term borrowings 29 289,062 251,732 - Customer deposits 30 1,929,183 2,261,214 - Other financial liabilities from virtual bank 31 89,327 54,373 Derivative financial liability - Held at FVPL 32 9,568 — Total 3,672,469 3,885,768 |
Financial assets measured at _2
Financial assets measured at fair value through other comprehensive income (Table) | 12 Months Ended |
Dec. 31, 2023 | |
Financial assets measured at fair value through other comprehensive income. | |
Schedule of financial assets at fair value through other comprehensive income | As at December 31, 2022 2023 RMB’000 RMB’000 Loans and advances to customers 1,608,402 1,902,985 Equity securities (Note a) 3,204 3,204 Debt securities 442,935 319,949 2,054,541 2,226,138 Less: Non-current financial asset measured at fair value through other comprehensive income (821,110) (1,372,685) 1,233,431 853,453 (a) On August 4, 2016, the Group acquired 5% equity interest in Fujian Exchange Settlement Centre Co., Ltd. ( 福建交易場所清算中心股份有限公司 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of amounts recognized in the balance sheet | As at December 31, 2022 2023 RMB’000 RMB’000 Right ‑ of ‑ use assets (Note 13) - Properties 89,574 48,572 Lease liabilities (Note 28) - Non current 44,553 28,283 - Current 47,030 22,941 91,583 51,224 |
Schedule of amounts recognized in the statement of profit or loss | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Depreciation charge of right‑of‑use assets 88,974 75,519 45,082 Interest expenses (included in finance cost) 5,803 7,578 3,448 94,777 83,097 48,530 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade receivables | |
Schedule of trade receivables | As at December 31, 2022 2023 RMB’000 RMB’000 Trade receivables 998,036 779,458 Less: impairment loss allowance (Note 5.1(b)) (57,047) (68,789) 940,989 710,669 |
Schedule of trade receivables and aging analysis | As at December 31, 2022 2023 RMB ’ 000 RMB ’ 000 Up to 1 year 932,479 694,157 1 to 2 years 42,752 55,187 2 to 3 years 13,857 21,103 Above 3 years 8,948 9,011 998,036 779,458 |
Prepayments and other receiva_2
Prepayments and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and other receivables | |
Schedule of Prepayment and other receivables | As at December 31, 2022 2023 RMB’000 RMB’000 Deposit receivable * 776,481 625,371 Value-added-tax deductible 143,338 188,501 Advance to suppliers 71,755 49,492 Advance to staff 47,332 13,238 Receivables for value-added-tax paid on behalf of wealth management products 455 — Others 46,519 41,471 Less: impairment loss allowance (7,276) (5,719) 1,078,604 912,354 Less: Non-current portion of other receivables — (6,663) 1,078,604 905,691 * Deposit receivable mainly represents deposit paid to the Group’s service vendors according to the contractual agreements and such receivables will contractually be repaid within one year. |
Schedule of impairment loss allowance on prepayment and other receivables | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Beginning of the year (3,349) (2,968) (7,276) Reversals/ (Additions) 2 (4,308) 1,557 Write-off 365 — — Exchange differences 14 — — End of the year (2,968) (7,276) (5,719) |
Financial assets measured at _3
Financial assets measured at amortized cost from virtual bank (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial assets measured at amortized cost from virtual bank | |
Schedule of financial assets measured at amortized cost from virtual bank | As at December 31, 2022 2023 RMB’000 RMB’000 Loans and advances to customers 44 3,142 Less: expected credit loss provision — (61) 44 3,081 |
Financial assets at fair valu_2
Financial assets at fair value through profit or loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial assets at fair value through profit or loss. | |
Schedule of financial assets | As at December 31, 2022 2023 RMB’000 RMB’000 Wealth management products 690,627 925,204 |
Restricted cash and time depo_2
Restricted cash and time deposits over three months (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restricted cash and time deposits over three months | |
Schedule of restricted cash | As at December 31, 2022 2023 RMB’000 RMB’000 Restricted bank deposits 198,320 39,005 Accrued interests 1,238 446 Time deposits with initial terms over three months 144,256 413,432 343,814 452,883 Less: Non-current restricted cash — (5,319) 343,814 447,564 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents. | |
Schedule of cash and cash equivalents | As at December 31, 2022 2023 RMB’000 RMB’000 Cash on hand 12 12 Cash at central bank 214,768 134,486 Cash at banks 1,692,996 1,244,975 1,907,776 1,379,473 At December 31, 2022 2023 RMB’000 RMB’000 USD 313,559 771,502 RMB 1,045,135 379,629 HKD 530,861 210,492 SGD 13,821 5,796 IDR 1,680 941 MYR 1,585 4 PHP 1,135 11,109 1,907,776 1,379,473 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share capital | |
Schedule of share capital | Number of shares USD Authorized Ordinary shares of USD0.00001 at December 31, 2021, 2022 and 2023 5,000,000,000 50,000 Equivalent Number of shares USD to RMB Issued Ordinary shares of USD0.00001 at December 31, 2017 900,000,000 9,000 59,838 Newly issued ordinary shares (Note a) 99,999,999 1,000 6,331 Ordinary shares of USD0.00001 at December 31, 2018 999,999,999 10,000 66,169 Newly issued ordinary shares (Note b) 3,720,665 37 257 Newly issued ordinary shares upon initial public offering (Note c) 93,600,000 936 6,549 Ordinary shares of USD0.00001 at December 31, 2019 1,097,320,664 10,973 72,975 Newly issued ordinary shares (Note d) 72,660,000 727 5,033 Surrendered ordinary shares (Note e) (3) — — Ordinary shares of USD0.00001 at December 31, 2020 1,169,980,661 11,700 78,008 Surrendered ordinary shares (Note f) (8) — — Ordinary shares of USD0.00001 at December 31, 2021 and 2022 and 2023 1,169,980,653 11,700 78,008 (a) The Company completed its Round A investments (“Round A Investments”) in April 2018 with 12 investors. 99,999,999 ordinary shares were issued to the Round A Investors at a price of USD7.5 per share for an aggregate consideration of approximately USD750 million (approximately RMB4,750,965,000). These shares rank pari passu in all respects with the shares then in issue. (b) On March 11, 2019, the Company issued 1,748,501 ordinary shares to National Dream Limited, the offshore entity of Vantage Point Technology, for a total subscription price of USD13,114,000 (approximately RMB88,030,000) pursuant to a share subscription agreement entered into in July 2018. On November 26, 2019, the Company issued 1,267,520 ordinary shares to Great Lakes Limited, the offshore entity of View Foundation’s selling shareholder, for a total subscription price of USD9,506,400 (approximately RMB66,877,000) pursuant to a share subscription agreement entered into in August, 2019. On November 27, 2019, the Company issued 563,714 and 140,930 ordinary shares to Blossom View Limited and Gold Planning Limited, respectively, which are the offshore entities designated by certain selling shareholders of BER Technology, for a total subscription price of USD5,284,830 (approximately RMB37,175,000) pursuant to a share subscription agreement entered into in September, 2019. (c) On December 13, 2019, the Company completed its IPO on the New York Stock Exchange. In the offering, 31,200,000 ADSs, representing 93,600,000 ordinary shares, were newly issued. (d) On January 14, 2020, the over-allotment options for the IPO were partially exercised and an addition of 3,520,000 ADSs were newly issued, which represented 10,560,000 ordinary shares. On August 17, 2020, the Company completed its underwritten public offerings of 18,000,000 ADSs issued and 2,700,000 ADSs issued pursuant to the over-allotment options, which totally represented 62,100,000 ordinary shares. (e) On December 11, 2020 and December 24, 2020, the Company bought back and cancelled 3 ordinary shares from Round A Investors. (f) On April 1, 2021 and April 2, 2021, the Company bought back and cancelled 8 ordinary shares from Round A Investors. |
Other reserves (Tables)
Other reserves (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other reserves | |
Schedule of other reserves | Foreign Share ‑ based currency Recapitalization Share compensation translation reserve premium reserve differences Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2021 1,200,000 9,627,159 173,577 (133,132) (227,673) 10,639,931 Other comprehensive income -Foreign currency translation differences — — — (152,542) — (152,542) -Fair value changes on financial assets measured at fair value through other comprehensive income — — — — (1,812) (1,812) Share-based payments: - Value of employee services and business cooperation arrangements(Note 27) — — 25,409 — — 25,409 - Exercise of shares under share option Scheme — — 2,345 — — 2,345 - Vesting of shares under Restricted Share Unit Scheme — — (700) — — (700) As at December 31, 2021 1,200,000 9,627,159 200,631 (285,674) (229,485) 10,512,631 Other comprehensive income -Foreign currency translation differences — — — 426,145 — 426,145 -Fair value changes on financial assets measured at fair value through other comprehensive income — — — — 5,324 5,324 Share-based payments: - Value of employee services and business cooperation arrangements (Note 27) — — 13,361 — — 13,361 - exercise of shares under share option Scheme — — 331 — — 331 - Vesting of shares under Restricted Share Unit Scheme — — (4,720) — — (4,720) As at December 31, 2022 1,200,000 9,627,159 209,603 140,471 (224,161) 10,953,072 Other comprehensive income -Foreign currency translation differences — — — 26,216 — 26,216 -Fair value changes on financial assets measured at fair value through other comprehensive income — — — — 500 500 Share-based payments: - Value of employee services and business cooperation arrangements (Note 27) — — 14,497 — — 14,497 Transactions with equity holders: - Transactions with non-controlling interests — — — — (4,434) (4,434) As at December 31, 2023 1,200,000 9,627,159 224,100 166,687 (228,095) 10,989,851 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement | |
Schedule of share-based compensation expenses | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 -Cost of revenue 935 — 3,233 -Research and development expenses 5,185 — 2,975 -Selling and marketing expenses 2,854 1,002 1,938 -General and administrative expenses 16,435 12,359 6,351 Total 25,409 13,361 14,497 Value of employee’s services (Note 8) 22,618 13,176 12,117 Value of non-employee’s services 2,791 185 2,380 Total 25,409 13,361 14,497 |
Schedule of movements in the number of share options | Number of share options For the year ended December 31, 2021 2022 2023 At the beginning of the year 19,459,994 12,725,995 10,137,344 Exercised (5,181,306) (621,930) — Forfeited (1,552,693) (1,966,721) (1,995,534) At the end of the year 12,725,995 10,137,344 8,141,810 |
Schedule of share options outstanding | Number of share options As at December 31, Grant Year Expiry Year Exercise price Fair value of options 2022 2023 2017 2027 RMB1.33 RMB0.62 977,951 944,490 2017 2027 RMB2.00 RMB0.52 5,295,021 4,576,500 2018 2028 RMB52.00 RMB26.00 3,044,462 2,068,320 2019 2029 RMB52.00 RMB23.42 819,910 552,500 10,137,344 8,141,810 |
Schedule of key assumptions of the share option | 2017 2018 2019 Discount rate 24.0 % 17.0 % 17.0 % Risk‑free interest rate 4.0 % 4.0 % 3.0 % Volatility 52.0 % 51.0 % 46.0 % Dividend yield 0.0 % 0.0 % 0.0 % |
Schedule of movements in the number of restricted share units | Number of restricted share units For the year ended December 31, 2021 2022 2023 At the beginning of the year 1,751,702 16,552,829 36,232,094 Granted 17,033,120 28,745,900 230,000 Vested (524,358) (3,538,551) — Forfeited (1,707,635) (5,528,084) (5,935,971) At the end of the year 16,552,829 36,232,094 30,526,123 |
Schedule of key assumptions of the restricted share units | 2021 2022 2023 Risk-free interest rate 2.0%~3.0 % 2.0%~3.0 % 2.0%~3.0 % Volatility 43.0%~49.0 % 43.0%~49.0 % 48.0%~49.0 % Dividend yield 0.0 % 0.0 % 0.0 % |
Restricted Share Units Scheme | |
Disclosure of terms and conditions of share-based payment arrangement | |
Schedule of share options outstanding | Number of restricted share units As at December 31, 2022 2023 Fair value of restricted share units Grant Year Expiry Year RMB 09/10/2019 09/10/2029 35.22 204,503 158,807 01/01/2020 01/01/2030 16.18 11,509 11,502 04/01/2020 04/01/2030 16.98 45,008 42,505 07/01/2020 07/01/2030 38.67 1,502 1,500 06/01/2021 06/01/2031 13.69 248,043 155,040 06/01/2021 06/01/2031 14.31 7,502 7,500 06/01/2021 06/01/2031 14.93 112,500 112,500 07/01/2021 07/01/2031 15.16 147,751 99,001 09/01/2021 09/01/2031 5.53 4,198,965 3,335,253 10/01/2021 10/01/2031 5.25 116,593 70,001 10/01/2021 10/01/2031 4.68 3,973,655 3,444,091 01/02/2022 01/02/2032 2.40 126,862 103,397 01/02/2022 01/02/2032 2.41 1,740,001 1,740,001 01/02/2022 01/02/2032 3.29 567,700 462,265 01/02/2022 01/02/2032 2.64 300,000 365,760 04/02/2022 04/02/2032 1.78 130,000 130,000 07/02/2022 07/02/2032 2.72 40,000 40,000 10/02/2022 10/02/2032 0.98 80,000 80,000 12/16/2022 12/16/2032 0.81 24,180,000 19,977,000 01/02/2023 01/02/2033 0.71 — 190,000 36,232,094 30,526,123 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other payables. | |
Schedule of trade and other payables | As at December 31, 2022 2023 RMB’000 RMB’000 Trade payables (i) Due to related parties 442,007 119,434 Due to third parties 311,610 127,125 753,617 246,559 Redemption liability (ii, iii) 243,937 232,951 Accrued expenses 516,240 436,846 Security deposits 160,814 136,813 Lease liabilities (Note 18(a)) 91,583 51,224 Amounts payable for purchase of shares held for share incentive scheme (Note 27) 88,280 — Income and other tax payables 51,913 45,057 Amounts due to related parties 644,900 744,604 Others 112,822 115,517 2,664,106 2,009,571 Less: non - current portion Lease liabilities (44,553) (28,283) Amounts payable for purchase of shares held for share incentive scheme (Note 27) (88,280) — (132,833) (28,283) 2,531,273 1,981,288 (i) As at December 31, 2022, and 2023, based on recognition date, the aging of the trade payables are mainly within 1 year . |
Short-term borrowings (Tables)
Short-term borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-term borrowings. | |
Schedule of short term borrowings | As at December 31, 2022 2023 RMB’000 RMB’000 Unsecured 289,062 251,732 |
Customer deposits (Tables)
Customer deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Customer deposits | |
Schedule of customer deposits | As at December 31, 2022 2023 RMB’000 RMB’000 Current and savings accounts 243,231 437,153 Fixed deposit 1,685,952 1,824,061 1,929,183 2,261,214 |
Other financial liabilities f_2
Other financial liabilities from virtual bank (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other financial liabilities from virtual bank | |
Schedule of other financial liabilities from virtual bank | As at December 31, 2022 2023 RMB ’ 000 RMB ’ 000 Repurchase agreements 89,327 54,373 |
Derivative financial assets a_2
Derivative financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial instruments by category | |
Schedule of derivative financial assets and liabilities | As at December 31, 2022 2023 Nominal Nominal amount Fair value amount Fair value RMB’000 RMB’000 Foreign exchange swaps 648,404 19,279 5,666 388 Currency forwards 741,937 37,084 358,636 37,620 Derivative financial assets 1,390,341 56,363 364,302 38,008 Foreign exchange swaps 208,938 9,568 — — Derivative financial liabilities 208,938 9,568 — — |
Deferred income tax (Tables)
Deferred income tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred income tax | |
Schedule of movements of deferred tax assets | Accelerated amortization of intangible Tax losses assets Others Total RMB’000 RMB’000 RMB’000 RMB’000 At January 1, 2021 312,908 212,035 59,751 584,694 Recognized in the profit or loss 116,993 (5,513) 8,644 120,124 At December 31, 2021 429,901 206,522 68,395 704,818 Recognized in the profit or loss 112,340 (21,274) (16,489) 74,577 At December 31, 2022 542,241 185,248 51,906 779,395 Recognized in the profit or loss 40,384 (27,336) 359 13,407 At December 31, 2023 582,625 157,912 52,265 792,802 |
Schedule of movements of deferred tax liabilities | Intangible assets acquired through business combination Others Total RMB’000 RMB’000 RMB’000 At January 1, 2021 20,080 18,141 38,221 Recognized in the profit or loss (10,219) 3,459 (6,760) At December 31, 2021 9,861 21,600 31,461 Recognized in the profit or loss (4,665) (8,164) (12,829) At December 31, 2022 5,196 13,436 18,632 Recognized in the profit or loss (3,117) 11,090 7,973 At December 31, 2023 2,079 24,526 26,605 |
Schedule of offsetting of deferred tax assets and deferred tax liabilities | As at 31 December 2021 2022 2023 RMB’000 RMB’000 RMB’000 Deferred tax assets 704,818 779,395 792,802 Set-off of deferred tax liabilities (21,600) (13,436) (24,526) 683,218 765,959 768,276 As at 31 December 2021 2022 2023 RMB’000 RMB’000 RMB’000 Deferred tax liabilities 31,461 18,632 26,605 Set-off of deferred tax assets (21,600) (13,436) (24,526) 9,861 5,196 2,079 |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash flow information | |
Schedule of cash used in operations | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Loss before income tax (1,442,608) (990,173) (361,714) Depreciation and amortization 438,749 281,430 201,341 Net impairment losses on financial and contract assets 72,229 33,639 53,950 Net impairment losses on intangible assets — 10,208 5,851 Losses on disposal of property and equipment and intangible asset 266 14,490 6,058 Share-based payments expenses (Note 27) 25,409 13,361 14,497 Net losses/ (gain) on derivatives (Note 9) 169,545 (262,769) (30,592) Net gain on financial assets at fair value through profit or loss (Note 9) (45,644) (30,687) (20,007) Share of gain of associate and joint venture (Note 15) (9,946) (24,852) (4,607) Impairment charges on associate(Note 15) — 10,998 7,157 Remeasurement of redemption liability(Note 9) — (37,874) — Finance costs 74,743 35,168 19,535 Interest from investing activities (22,983) (6,646) (26,252) Exchange (gain)/losses (Note 9) (77,143) 312,843 11,171 Changes in working capital: Trade receivables (123,371) (63,884) 185,745 Contract assets 45,855 106,135 29,276 Prepayments and other receivables (353,480) (335,419) 165,244 Trade and other payable 530,095 106,952 (817,507) Contract liabilities 17,032 13,365 (30,938) Customer deposits 944,318 579,012 332,031 Other financial liabilities from virtual bank — 89,327 (34,954) Financial assets measured at amortized cost from virtual bank 586,953 13,341 (3,098) Financial assets measured at fair value through other comprehensive income from virtual bank (1,103,460) (504,942) (294,583) Payroll and welfare payables (110,263) (83,809) (45,350) (383,704) (720,786) (637,746) |
Schedule of non-cash investing and financing activities | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Acquisition of right‑of‑use properties by leasing (Note 13) 118,030 76,534 21,612 |
Schedule of gross debt and gross debt reconciliation | As at December 31, 2022 2023 RMB’000 RMB’000 Restricted cash and time deposits over three months 343,814 447,564 Cash and cash equivalents 1,907,776 1,379,473 Financial assets at fair value through profit or loss 690,627 925,204 Lease liabilities (Note 18) (91,583) (51,224) —due within one year (47,030) (22,941) —due after one year (44,553) (28,283) Borrowings — repayable within one year (289,062) (251,732) 2,561,572 2,449,285 Cash and liquid investments 2,942,217 2,752,241 Gross debt — fixed interest rates (380,645) (302,956) 2,561,572 2,449,285 Financial assets at fair value Liabilities from through financing activities Restricted Cash and cash profit or Lease cash (ii) equivalents loss liabilities Borrowings Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at January 1, 2021 2,280,499 3,055,194 1,487,871 (134,219) (2,283,307) 4,406,038 Cash flows (1,206,607) (1,627,680) 538,138 96,139 1,524,899 (675,111) Acquisition of right-of-use assets — — — (118,030) — (118,030) Other Changes (i) (13,465) (28,144) 45,644 1,220 (56,852) (51,597) As at December 31, 2021 1,060,427 1,399,370 2,071,653 (154,890) (815,260) 3,561,300 Cash flows (788,828) 433,119 (1,411,713) 76,734 543,501 (1,147,187) Acquisition of right-of-use assets — — — (76,534) — (76,534) Other Changes (i) 72,215 75,287 30,687 63,107 (17,303) 223,993 As at December 31, 2022 343,814 1,907,776 690,627 (91,583) (289,062) 2,561,572 Cash flows 77,533 (543,432) 214,570 60,922 49,403 (141,004) Acquisition of right-of-use assets — — — (21,612) — (21,612) Other Changes (i) 26,217 15,129 20,007 1,049 (12,073) 50,329 As at December 31, 2023 447,564 1,379,473 925,204 (51,224) (251,732) 2,449,285 (i) Other changes include accrued interests, disposal, foreign currency translation differences and other non-cash movements. (ii) Cash flows include restricted cash and time deposits over three months movements recognized in cash flows from operating activities and investing activities. |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Schedule of related parties of the Group that had balances and/or transactions with the Group | The following companies are related parties of the Group that had balances and/or transactions with the Group during the years ended December 31, 2021, 2022 and 2023. Name of related parties Relationship with the Group Sen Rong Limited(i) A shareholder that has significant influence over the Group Rong Chang Limited(i) A shareholder that has significant influence over the Group Bo Yu A shareholder that has significant influence over the Group Ping An Group Ultimate parent company of Bo Yu Subsidiaries of Ping An Group Controlled by Ping An Group Open Portal Guangxi Significant influenced by the Group (i) Sen Rong Limited and Rong Chang Limited has entered into an acting-in-concert agreement in 2020 and an amended and restarted agreement in 2021. As a result, Rong Chang and Sen Rong as a concert group had significant influence over the Group. |
Schedule of key management personnel compensations | For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Wages and salaries 28,163 21,123 20,806 Welfare and other benefits 772 614 654 Share-based payments 4,187 8,401 4,909 33,122 30,138 26,369 |
Schedule of significant transactions and year end balances with related parties | (c) Significant transactions with related parties For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Revenue Ping An Group and its subsidiaries 2,315,220 2,526,682 2,091,039 For the year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Purchase of services Ping An Group and its subsidiaries 1,534,302 1,706,436 1,423,367 Net loss on disposal of property and equipment Ping An Group and its subsidiaries — (599) (1,359) Net gain from wealth management products consolidated by related parties Ping An Group and its subsidiaries 26,249 18,890 12,996 Net (loss)/gain on derivatives Ping An Group and its subsidiaries (169,545) 262,769 30,592 Investment income from loan to related party Open Portal Guangxi — 283 — Interest income on bank deposits Ping An Group and its subsidiaries 12,037 9,234 17,637 Leasing payment Ping An Group and its subsidiaries 19,849 20,957 12,131 Interest expenses Ping An Group and its subsidiaries 15,914 2,672 — Net gain on financial assets measured at fair value through other comprehensive income Ping An Group and its subsidiaries — 315 — (d) Year end balances with related parties As at December 31, 2022 2023 RMB’000 RMB’000 Trade receivables Ping An Group and its subsidiaries (i) 372,456 299,098 Contract assets Ping An Group and its subsidiaries 9,876 7,538 Prepayment and other receivables Ping An Group and its subsidiaries 771,137 599,671 Financial assets at fair value through profit or loss (Note 22) Ping An Group and its subsidiaries 405,960 417,956 Cash and restricted cash and time deposits over three months Ping An Group and its subsidiaries 787,916 784,840 Trade and other payables Ping An Group and its subsidiaries (i) 1,086,907 864,038 Contract liabilities Ping An Group and its subsidiaries 27,517 25,550 Derivative financial assets Ping An Group and its subsidiaries 56,363 38,008 Derivative financial liabilities Ping An Group and its subsidiaries 9,568 — (i) The balances with related parties were unsecured, interest-free and repayable on demand. |
The Group's maximum exposure _2
The Group's maximum exposure to unconsolidated structured entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
The Group's maximum exposure to unconsolidated structured entities | |
Schedule of size of unconsolidated structured entities and the Group's funding and maximum exposure | Unconsolidated structured entities The Group’s Carrying maximum Interest held 31 December 2022 Size amount exposure by the Group RMB’000 RMB’000 RMB’000 Asset management products managed by the Group 594,058 — — Service fee Wealth management products managed by related parties Note a 690,627 690,627 Investment income Unconsolidated structured entities The Group’s Carrying maximum Interest held 31 December 2023 Size amount exposure by the Group RMB’000 RMB’000 RMB’000 Wealth management products managed by related parties Note a 532,147 532,147 Investment income |
Parent company only condensed_2
Parent company only condensed financial information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Parent company only condensed financial information | |
Schedule of condensed financial information of parent company | (a) Condensed Statements of Comprehensive Income Year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Selling and marketing expenses (439) (387) (90) General and administrative expenses (53,621) (104,653) (32,965) Net impairment losses on amount due from subsidiaries — (465,457) (281,288) Other income, gains or loss‑net 834 2,555 (457) Operating loss (53,226) (567,942) (314,800) Finance (costs)/income – net (32) (573) 196 Share of losses of joint venture (2,896) — — Share of losses of subsidiaries and VIEs (1,225,545) (303,759) (48,111) Loss before income tax (1,281,699) (872,274) (362,715) Income tax expenses — — — Loss for the year (1,281,699) (872,274) (362,715) Other comprehensive income, net of tax Items that may be subsequently reclassified to profit or loss – Foreign currency translation differences (152,542) 69,454 3,880 – Changes in the fair value of debt instruments measured at fair value through other comprehensive income (16) 5,324 500 Items that will not be subsequently reclassified to profit or loss – Foreign currency translation differences — 356,691 22,336 – (1,796) — — Total comprehensive loss (1,436,053) (440,805) (335,999) (b) Condensed Balance Sheets As at December 31, 2022 2023 Note RMB’000 RMB’000 ASSETS Non ‑ current assets Interest in subsidiaries 40(d) 1,764,074 2,181,554 Total non ‑ current assets 1,764,074 2,181,554 Current assets Amount due from subsidiaries 40(d) 1,641,677 803,173 Prepayments and other receivables 448 435 Cash and cash equivalents 7,327 3,267 Total current assets 1,649,452 806,875 Total assets 3,413,526 2,988,429 EQUITY AND LIABILITIES Equity Share capital 25 78 78 Shares held for share incentive scheme 27 (149,544) (149,544) Reserves 26 10,953,072 10,989,851 Accumulated loss (7,510,899) (7,873,614) Total equity 3,292,707 2,966,771 Liabilities Non ‑ current liabilities Trade and other payables 88,280 — Total non ‑ current liabilities 88,280 — Current liabilities Trade and other payables 32,539 21,658 Total current liabilities 32,539 21,658 Total liabilities 120,819 21,658 Total equity and liabilities 3,413,526 2,988,429 (c) Condensed Statements of Cash Flows Year ended December 31, 2021 2022 2023 RMB’000 RMB’000 RMB’000 Cash used in operating activities Cash used in operations (51,132) (139,011) (44,284) Net cash used in operating activities (51,132) (139,011) (44,284) Cash flows from investing activities Payment for interest in subsidiaries, net of cash acquired (1,333,804) (3,005,546) (1,117,823) Proceeds from loan to subsidiaries 1,350,654 3,218,655 1,157,947 Net cash generated from investing activities 16,850 213,109 40,124 Cash flows from financing activities Proceeds from exercise of shares under share incentive scheme 9,257 1,161 — Payments for shares repurchase — (74,992) — Net cash generated from/ (used in) financing activities 9,257 (73,831) — Net (decrease)/increase in cash and cash equivalents (25,025) 267 (4,160) Cash and cash equivalents at the beginning of the year 31,857 6,454 7,327 Effects of exchange rate changes on cash and cash equivalents (378) 606 100 Cash and cash equivalents at the end of year 6,454 7,327 3,267 |
Schedule of Interest in subsidiaries and amount due from subsidiaries | As at December 31, 2022 2023 RMB’000 RMB’000 Interest in subsidiaries Equity investment in subsidiaries 1,764,074 2,181,554 As at December 31, 2022 2023 RMB’000 RMB’000 Amount due from subsidiaries Loan receivables 1,641,677 803,173 |
General information and basis_3
General information and basis of presentation - History and recapitalization of the Group (Details) | Dec. 31, 2023 | Dec. 12, 2022 | Dec. 11, 2022 |
General information and basis of presentation | |||
ADSs ratio | 30 | 30 | 3 |
General information and basis_4
General information and basis of presentation - Other changes of the Company's shareholders subsequent to the Recapitalization and Initial Public Offering (Details) | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 SGD ($) | Dec. 31, 2023 IDR (Rp) | Dec. 31, 2023 HKD ($) | |
General information, recapitalization and basis of presentation. | ||||||
Issued and paid-in capital | ¥ 78,000 | ¥ 78,000 | ||||
Renewal term of exclusive equity purchase option agreement | 5 years | |||||
Expiration term of exclusive equity purchase option agreement | 30 days | |||||
Jin Tai Yuan Limited | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | $ | $ 747,940,498 | |||||
Jin Cheng Long Limited | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | $ | 747,940,498 | |||||
OneConnect Financial Technology (HongKong) Limited | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | $ | 1 | |||||
OneConnect Financial Technology (Singapore) Co., Pte. Ltd. | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | $ | $ 47,900,000 | |||||
PT OneConnect Financial Technology Indonesia | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | Rp | Rp 10,000,000,000 | |||||
Ping An OneConnect Bank (Hong Kong) Limited | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | 38,216,561 | $ 1,200,000,000 | ||||
Shenzhen OneConnect Technology | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | $ | $ 4,903,181,996 | |||||
Registered capital | ¥ 4,960,000,000 | |||||
Initial term of exclusive business cooperation agreement | 10 years | |||||
Beijing Vantage Point Technology Co., Ltd. | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 51.67% | 51.67% | ||||
Issued and paid-in capital | ¥ 13,333,529 | |||||
Shenzhen OneConnect Information Technology | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 51% | 51% | ||||
Issued and paid-in capital | ¥ 100,000,000 | |||||
BER Technology | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 80% | ||||
Issued and paid-in capital | ¥ 22,950,000 | |||||
Zhang Tong Shun | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | ¥ 10,000,000 | |||||
OneConnect Smart Technology Co Ltd | VIEs | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | ¥ 1,200,000,000 | |||||
Shenzhen CA | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 98.90% | |||||
Shenzhen CA | VIEs | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 98.90% | 98.90% | ||||
Issued and paid-in capital | ¥ 543,500,000 | |||||
Shanghai OneConnect | Subsidiaries of the VIEs | ||||||
General information, recapitalization and basis of presentation. | ||||||
Issued and paid-in capital | ¥ 1,200,000,000 | |||||
Kechuang | Subsidiaries of the VIEs | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | ¥ 4,000,000 | |||||
Shenzhen OneConnect Chuangpei Technology Co., Ltd. | Subsidiaries of the VIEs | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | ¥ 10,000,000 | |||||
Zhuhai Yirongtong Asset Management Co., Ltd. | Subsidiaries of the VIEs | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | ¥ 12,000,000 | |||||
Ping An OneConnect Cloud Technology Co., Ltd. | Subsidiaries of the VIEs | ||||||
General information, recapitalization and basis of presentation. | ||||||
Proportion of ownership interest in subsidiary | 100% | 100% | ||||
Issued and paid-in capital | ¥ 500,000,000 |
General information and basis_5
General information and basis of presentation - Schedule of financial statements amounts and balances of the Group's VIEs and subsidiaries of VIEs (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
General information, recapitalization and basis of presentation. | |||
Total current assets | ¥ 5,358,968 | ¥ 6,374,276 | |
Total non-current assets | 2,709,390 | 2,508,106 | |
Total assets | 8,068,358 | 8,882,382 | ¥ 9,340,607 |
Total current liabilities | 5,073,078 | 5,446,321 | |
Total non-current liabilities | 47,488 | 158,006 | |
Total liabilities | 5,120,566 | 5,604,327 | 5,505,525 |
Total revenue | 3,521,591 | 4,357,462 | 4,098,037 |
Net loss | (371,476) | (928,026) | (1,330,513) |
Net cash used in operating activities | (648,461) | (745,984) | (404,334) |
Net cash generated from investing activities | 318,634 | 1,873,169 | 388,435 |
Net cash generated from/(used in) financing activities | (213,605) | (694,066) | (1,611,781) |
Net (decrease)/increase in cash and cash equivalents | (543,432) | 433,119 | (1,627,680) |
Cash and cash equivalents at the beginning of the year | 1,907,776 | 1,399,370 | 3,055,194 |
Cash and cash equivalents at the end of year | ¥ 1,379,473 | 1,907,776 | 1,399,370 |
Shenzhen CA | |||
General information, recapitalization and basis of presentation. | |||
Proportion of ownership interest in subsidiary | 98.90% | ||
VIEs | |||
General information, recapitalization and basis of presentation. | |||
Registered capital, capital reserve and PRC statutory reserves | ¥ 1,782,000 | 1,774,000 | |
Total current assets | 3,058,529 | 3,865,127 | |
Total non-current assets | 603,914 | 906,455 | |
Total assets | 3,662,443 | 4,771,582 | |
Total current liabilities | 6,676,641 | 7,645,984 | |
Total non-current liabilities | 24,291 | 27,902 | |
Total liabilities | 6,700,932 | 7,673,886 | |
Total revenue | 3,261,285 | 4,064,707 | 3,723,306 |
Net loss | (68,079) | (195,819) | (708,699) |
Net cash used in operating activities | (149,778) | (618,574) | (439,174) |
Net cash generated from investing activities | 75,598 | 918,498 | 3,633 |
Net cash generated from/(used in) financing activities | (508,121) | 368,778 | 108,564 |
Net (decrease)/increase in cash and cash equivalents | (582,301) | 668,702 | (326,977) |
Cash and cash equivalents at the beginning of the year | 906,252 | 237,550 | 564,527 |
Cash and cash equivalents at the end of year | ¥ 323,951 | ¥ 906,252 | ¥ 237,550 |
VIEs | Shenzhen CA | |||
General information, recapitalization and basis of presentation. | |||
Proportion of ownership interest in subsidiary | 98.90% | 98.90% |
Summary of accounting policy _4
Summary of accounting policy information - Revenue recognition (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of accounting policy information | |
Statement that practical expedient about existence of significant financing component has been used | false |
Statement that practical expedient about incremental costs of obtaining contract has been used | true |
Summary of accounting policy _5
Summary of accounting policy information - Impairment of non financial assets and Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Intangible assets | |
Impairment loss | ¥ 0 |
Application and platform | Minimum | |
Intangible assets | |
Useful life | 3 years |
Application and platform | Maximum | |
Intangible assets | |
Useful life | 10 years |
Purchased software | Minimum | |
Intangible assets | |
Useful life | 3 years |
Purchased software | Maximum | |
Intangible assets | |
Useful life | 10 years |
Business licenses | Minimum | |
Intangible assets | |
Useful life | 3 years |
Business licenses | Maximum | |
Intangible assets | |
Useful life | 5 years |
Summary of accounting policy _6
Summary of accounting policy information - Derivative financial instruments and Leases (Details) | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Leases | |
Derivative financial instruments | ¥ 0 |
Minimum | |
Leases | |
Typical term of rental contracts (in years) | 1 year |
Maximum | |
Leases | |
Typical term of rental contracts (in years) | 5 years |
Summary of accounting policy _7
Summary of accounting policy information - Property and equipment (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Office and telecommunication equipment | Minimum | |
Property and equipment | |
Expected useful life | 3 years |
Office and telecommunication equipment | Maximum | |
Property and equipment | |
Expected useful life | 5 years |
Leasehold improvements | |
Property and equipment | |
Expected useful life | 5 years |
Critical accounting estimates_2
Critical accounting estimates and judgments (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Critical accounting estimates and judgments | |
Preferential income tax rate | 15% |
Expiration period | 10 years |
Management of financial risk (D
Management of financial risk (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Currency risk | Discount rate | |||
Management of financial risk | |||
Impact on post tax profit due to increase in foreign currency | ¥ (16,596) | ¥ 1,752 | ¥ (4,028) |
Impact on post tax profit due to decrease in foreign currency | ¥ 16,596 | ¥ (1,752) | ¥ 4,028 |
Interest rate risk | |||
Management of financial risk | |||
Percentage of reasonably possible increase in risk assumption | 2% | 2% | |
Interest rate risk | HKD | |||
Management of financial risk | |||
Impact on earnings over the next 12 months if interest rates rise by 200 basis points | ¥ (15,000) | ¥ (9,000) | |
Impact on economic value if interest rates rise by 200 basis points | (43,000) | (25,000) | |
Interest rate risk | USD | |||
Management of financial risk | |||
Impact on earnings over the next 12 months if interest rates rise by 200 basis points | 3,000 | 9,000 | |
Impact on economic value if interest rates rise by 200 basis points | ¥ (3,000) | (1,000) | |
Interest rate risk | RMB | |||
Management of financial risk | |||
Impact on earnings over the next 12 months if interest rates rise by 200 basis points | ¥ 1,000 |
Management of financial risk -
Management of financial risk - Trade receivables and contract assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of nature and extent of risks arising from financial instruments | ||
Trade receivables. | ¥ 779,458 | ¥ 998,036 |
Allowance account for credit losses of financial assets | 57,379 | 59,852 |
Gross carrying amount | Three-stage approach | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Trade receivables. | 998,036 | |
Contract assets. | 182,480 | |
Gross carrying amount of trade receivables and contract assets | 1,180,516 | |
Impairment loss allowance | Three-stage approach | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Trade receivables. | 57,047 | |
Contract assets. | 59,852 | |
Allowance account for credit losses of financial assets | 116,899 | |
Credit risk | Simplified approach | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Gross carrying amount of trade receivables and contract assets | 932,662 | ¥ 1,180,516 |
Credit risk | Gross carrying amount | Simplified approach | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Trade receivables. | 779,458 | |
Contract assets. | 153,204 | |
Gross carrying amount of trade receivables and contract assets | 932,662 | |
Credit risk | Impairment loss allowance | Simplified approach | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Allowance account for credit losses of financial assets | 126,168 | |
Trade receivable. | Credit risk | Impairment loss allowance | Simplified approach | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Trade receivables. | 68,789 | |
Contract asset | Credit risk | Impairment loss allowance | Simplified approach | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Contract assets. | ¥ 57,379 |
Management of financial risk _2
Management of financial risk - Impairment loss allowance of trade receivables and contract assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loss allowance | ||||
Loss allowance of trade receivables and contract assets applying simplified approach | ¥ 57,379 | ¥ 59,852 | ||
Credit risk | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Expected loss rate | 13.53% | 9.90% | ||
Credit risk | Related parties | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Expected loss rate | 2.13% | 2.27% | ||
Credit risk | Not later than one year [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Expected loss rate | 4.56% | 3.33% | ||
Credit risk | Later than one year and not later than two years [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Expected loss rate | 41.29% | 42.80% | ||
Credit risk | Later than two years and not later than three years [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Expected loss rate | 77.39% | 68.40% | ||
Credit risk | Later than three years [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Expected loss rate | 94.34% | 97.75% | ||
Credit risk | Simplified approach | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Gross carrying amount of trade receivables and contract assets applying simplified approach | ¥ 932,662 | ¥ 1,180,516 | ||
Credit risk | Simplified approach | Related parties | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Gross carrying amount of trade receivables and contract assets applying simplified approach | 306,636 | 391,221 | ||
Credit risk | Simplified approach | Not later than one year [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Gross carrying amount of trade receivables and contract assets applying simplified approach | 476,215 | 657,723 | ||
Credit risk | Simplified approach | Later than one year and not later than two years [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Gross carrying amount of trade receivables and contract assets applying simplified approach | 72,327 | 63,170 | ||
Credit risk | Simplified approach | Later than two years and not later than three years [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Gross carrying amount of trade receivables and contract assets applying simplified approach | 29,615 | 26,482 | ||
Credit risk | Simplified approach | Later than three years [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Gross carrying amount of trade receivables and contract assets applying simplified approach | 47,869 | 41,920 | ||
Credit risk | Trade receivable and contract asset | ||||
Loss allowance | ||||
Loss allowance of trade receivables and contract assets applying simplified approach | 126,168 | 116,899 | ¥ 125,318 | ¥ 97,243 |
Credit risk | Trade receivable and contract asset | Related parties | ||||
Loss allowance | ||||
Loss allowance of trade receivables and contract assets applying simplified approach | 6,528 | 8,888 | ||
Credit risk | Trade receivable and contract asset | Not later than one year [member] | ||||
Loss allowance | ||||
Loss allowance of trade receivables and contract assets applying simplified approach | 21,698 | 21,885 | ||
Credit risk | Trade receivable and contract asset | Later than one year and not later than two years [member] | ||||
Loss allowance | ||||
Loss allowance of trade receivables and contract assets applying simplified approach | 29,863 | 27,038 | ||
Credit risk | Trade receivable and contract asset | Later than two years and not later than three years [member] | ||||
Loss allowance | ||||
Loss allowance of trade receivables and contract assets applying simplified approach | 22,920 | 18,113 | ||
Credit risk | Trade receivable and contract asset | Later than three years [member] | ||||
Loss allowance | ||||
Loss allowance of trade receivables and contract assets applying simplified approach | ¥ 45,159 | ¥ 40,975 |
Management of financial risk _3
Management of financial risk - Movements in the impairment loss allowance of contract assets of implementation service (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movements in the impairment loss allowance of contract assets of implementation service | |||
Beginning of the year | ¥ (59,852) | ||
End of the year | (57,379) | ¥ (59,852) | |
Credit risk | Trade receivable and contract asset | |||
Movements in the impairment loss allowance of contract assets of implementation service | |||
Beginning of the year | (116,899) | (125,318) | ¥ (97,243) |
Additions of impairment loss, net | (42,102) | (18,715) | (71,061) |
Recovery of amounts written off previously | (9,980) | ||
Write-off | 33,402 | 37,156 | 42,986 |
Exchange difference | (569) | (42) | |
End of the year | ¥ (126,168) | ¥ (116,899) | ¥ (125,318) |
Management of financial risk _4
Management of financial risk - Financial assets measured at amortized cost from banking operations (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of credit risk exposure | ||||
Financial assets measured at fair value through other-comprehensive income. | ¥ 853,453 | ¥ 1,233,431 | ||
Total financial assets | 6,391,260 | 6,810,333 | ||
Loss allowance | 57,379 | 59,852 | ||
Financial assets measured at amortized cost, Gross carrying amount | 3,081 | 44 | ||
Expected credit loss provision | 61 | |||
Loans and advances to customers. | ||||
Disclosure of credit risk exposure | ||||
Loss allowance | ¥ 12,061 | ¥ 11,528 | ¥ 1,962 | ¥ 712 |
Credit risk | ||||
Disclosure of credit risk exposure | ||||
Expected loss rate | 13.53% | 9.90% | ||
Credit risk | Loans and advances to customers. | ||||
Disclosure of credit risk exposure | ||||
Financial assets measured at amortized cost | ¥ 3,142 | ¥ 44 | ||
Financial assets measured at fair value through other-comprehensive income. | 1,902,985 | 1,608,402 | ||
Gross carrying amount | 1,906,127 | ¥ 1,608,446 | ||
Expected credit loss provision | ¥ 61 | |||
Expected loss rate | 1.94% |
Management of financial risk _5
Management of financial risk - Movements in the impairment loss allowance of contract assets of transaction based and support service (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Management of financial risk | |||
Beginning of the year | ¥ (59,852) | ||
End of the year | (57,379) | ¥ (59,852) | |
Loans and advances to customers. | |||
Management of financial risk | |||
Beginning of the year | (11,528) | (1,962) | ¥ (712) |
Additions of impairment loss, net | (13,344) | (10,616) | (1,250) |
Write-off | 12,811 | 1,050 | |
End of the year | (12,061) | (11,528) | (1,962) |
Credit risk | Contract assets of transaction based and support service | Three-stage approach | |||
Management of financial risk | |||
Beginning of the year | (190) | (711) | |
Additions of impairment loss, net | ¥ 190 | (1,170) | |
Recovery of amounts written off previously | (61) | ||
Write-off | 1,691 | ||
End of the year | ¥ (61) | ¥ (190) |
Management of financial risk _6
Management of financial risk - Liquidity risk (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities | ||
Other financial liabilities from virtual bank | ¥ 54,373 | ¥ 89,327 |
Customer deposits | 2,261,214 | 1,929,183 |
Maximum guarantee exposure | 115,517 | 112,822 |
Liquidity risk | ||
Disclosure of maturity analysis for non-derivative financial liabilities | ||
Short-term borrowings | 257,007 | 294,461 |
Trade and other payables | 1,322,197 | 1,375,958 |
Including: lease liabilities | 54,972 | 97,955 |
Other financial liabilities from virtual bank | 54,373 | 89,327 |
Customer deposits | 2,269,261 | 1,929,183 |
Non-derivative financial liabilities | 3,902,838 | 3,688,929 |
Gross settled (foreign currency swaps) - (inflow) | (198,722) | |
Gross settled (foreign currency swaps) - outflow | 208,290 | |
Derivative financial liabilities | 9,568 | |
Total | 3,698,497 | |
Liquidity risk | Not later than one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities | ||
Short-term borrowings | 257,007 | 294,461 |
Trade and other payables | 1,292,054 | 1,236,571 |
Including: lease liabilities | 24,829 | 50,862 |
Other financial liabilities from virtual bank | 54,373 | 89,327 |
Customer deposits | 2,269,261 | 1,929,183 |
Non-derivative financial liabilities | 3,872,695 | 3,549,542 |
Gross settled (foreign currency swaps) - (inflow) | (198,722) | |
Gross settled (foreign currency swaps) - outflow | 208,290 | |
Derivative financial liabilities | 9,568 | |
Total | 3,559,110 | |
Liquidity risk | 1 to 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities | ||
Trade and other payables | 30,143 | 139,387 |
Including: lease liabilities | 30,143 | 47,093 |
Non-derivative financial liabilities | ¥ 30,143 | 139,387 |
Total | ¥ 139,387 |
Management of financial risk _7
Management of financial risk - Fair value measurement (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of fair value measurement of assets | ||
Derivative financial assets, fair value | ¥ 38,008 | ¥ 56,363 |
Derivative financial assets | 38,008 | 56,363 |
Derivative financial liabilities (Note 32) | 9,568 | |
Financial assets held at FVPL | ||
Disclosure of fair value measurement of assets | ||
Derivative financial assets, fair value | 925,204 | 690,627 |
Financial assets measured at fair value through other comprehensive income (Note 17) | ||
Disclosure of fair value measurement of assets | ||
Derivative financial assets, fair value | 2,226,138 | 2,054,541 |
Level 1 | Financial assets measured at fair value through other comprehensive income (Note 17) | ||
Disclosure of fair value measurement of assets | ||
Derivative financial assets, fair value | 319,949 | 442,935 |
Level 2 | ||
Disclosure of fair value measurement of assets | ||
Derivative financial assets | 38,008 | 56,363 |
Derivative financial liabilities (Note 32) | 9,568 | |
Level 2 | Financial assets held at FVPL | ||
Disclosure of fair value measurement of assets | ||
Derivative financial assets, fair value | 925,204 | 690,627 |
Level 3 | Financial assets measured at fair value through other comprehensive income (Note 17) | ||
Disclosure of fair value measurement of assets | ||
Derivative financial assets, fair value | ¥ 1,906,189 | ¥ 1,611,606 |
Management of financial risk _8
Management of financial risk - Transfer (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Management of financial risk | ||
Transfer from Level 1 to Level 2, Liabilities | ¥ 0 | ¥ 0 |
Management of financial risk _9
Management of financial risk - Movements of Level 3 financial instruments (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movements of Level 3 financial instruments measured at fair value | |||
Beginning of the year | ¥ 6,810,333 | ||
End of the year | 6,391,260 | ¥ 6,810,333 | |
Level 3 | |||
Movements of Level 3 financial instruments measured at fair value | |||
Beginning of the year | 1,611,606 | 1,107,340 | ¥ 5,676 |
Additions, net | 295,287 | 506,620 | 1,103,460 |
Losses recognized in other comprehensive income | (789) | (1,678) | (1,796) |
(Losses)/gain recognized in profit or loss | 85 | (676) | |
End of the year | ¥ 1,906,189 | ¥ 1,611,606 | ¥ 1,107,340 |
Management of financial risk_10
Management of financial risk - Valuation inputs and relationships to fair value for loans and advances to customers (Details) - Loans and advances to customers from virtual bank - Level 3 | Dec. 31, 2023 | Dec. 31, 2022 |
Discount rate | ||
Valuation inputs and relationships to fair value liabilities | ||
Range of inputs, minimum | 7.09% | 5.66% |
Range of inputs, maximum | 10.29% | 9.30% |
Prepayment ratio | ||
Valuation inputs and relationships to fair value liabilities | ||
Range of inputs, minimum | 0.36% | 0.34% |
Range of inputs, maximum | 0.38% |
Management of financial risk_11
Management of financial risk - Valuation inputs and relationships to fair value with all other variables held constant (Details) - Loans and advances to customers from virtual bank - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Discount rate | ||
Valuation inputs and relationships to fair value liabilities | ||
Unobservable inputs, maximum | 5% | |
Unobservable inputs, minimum | (5.00%) | |
Impact on the assets and other comprehensive income, decrease | ¥ (8,845) | ¥ (5,941) |
Impact on the assets and other comprehensive income, increase | ¥ 8,926 | 5,975 |
Prepayment ratio | ||
Valuation inputs and relationships to fair value liabilities | ||
Unobservable inputs, maximum | 5% | |
Unobservable inputs, minimum | (5.00%) | |
Impact on the assets and other comprehensive income, decrease | ¥ (315) | (283) |
Impact on the assets and other comprehensive income, increase | ¥ 315 | ¥ 283 |
Segment information and reven_3
Segment information and revenue - Segments and Principal activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segments and principal activities | |||
Revenue | ¥ 3,667,508 | ¥ 4,464,002 | ¥ 4,132,357 |
Cost of revenue | (2,318,103) | (2,828,986) | (2,695,706) |
Gross profit | 1,349,405 | 1,635,016 | 1,436,651 |
Research and development expenses | (955,201) | (1,417,691) | (1,353,018) |
Selling and marketing expenses | (275,351) | (411,356) | (588,380) |
General and administrative expenses | (504,970) | (824,711) | (841,685) |
Net impairment losses on financial and contract assets | (53,950) | (33,639) | (72,229) |
Other income, gains or loss-net | 71,855 | 70,818 | 13,921 |
Operating loss | (368,212) | (981,563) | (1,404,740) |
Finance income | 29,580 | 14,709 | 28,823 |
Finance costs | (20,532) | (37,173) | (76,637) |
Finance (costs)/income - net | 9,048 | (22,464) | (47,814) |
Share of gain of associate and joint venture - net | 4,607 | 24,852 | 9,946 |
Impairment charges on associates | (7,157) | (10,998) | |
Loss before income tax | (361,714) | (990,173) | (1,442,608) |
ASSETS | |||
Segment Assets | 7,010,921 | 7,827,262 | 8,368,228 |
Goodwill | 289,161 | 289,161 | 289,161 |
Deferred tax assets | 768,276 | 765,959 | 683,218 |
Total assets | 8,068,358 | 8,882,382 | 9,340,607 |
LIABILITIES | |||
Segment Liabilities | 5,118,487 | 5,599,131 | 5,495,664 |
Deferred tax liabilities | 2,079 | 5,196 | 9,861 |
Total liabilities | 5,120,566 | 5,604,327 | 5,505,525 |
Other segment information | |||
Depreciation of property and equipment | 74,908 | 119,309 | 135,975 |
Amortization of intangible assets | 126,433 | 162,121 | 302,774 |
Additions of non-current assets except for goodwill and deferred income tax assets | 59,081 | 144,477 | 246,047 |
Virtual Bank Business | |||
Segments and principal activities | |||
Revenue | 145,917 | 106,540 | 34,320 |
Cost of revenue | (134,214) | (56,716) | (37,748) |
Gross profit | 11,703 | 49,824 | (3,428) |
Research and development expenses | (18,276) | (33,192) | |
Selling and marketing expenses | (33,739) | (41,408) | (38,042) |
General and administrative expenses | (129,842) | (114,546) | (99,796) |
Net impairment losses on financial and contract assets | (13,406) | (10,616) | (1,250) |
Other income, gains or loss-net | 2,672 | (544) | 91 |
Operating loss | (162,612) | (135,566) | (175,617) |
Finance costs | (446) | (354) | (310) |
Finance (costs)/income - net | (446) | (354) | (310) |
Loss before income tax | (163,058) | (135,920) | (175,927) |
ASSETS | |||
Segment Assets | 2,994,772 | 2,851,885 | 2,032,344 |
Total assets | 2,994,772 | 2,851,885 | 2,032,344 |
LIABILITIES | |||
Segment Liabilities | 2,388,056 | 2,093,126 | 1,459,125 |
Total liabilities | 2,388,056 | 2,093,126 | 1,459,125 |
Other segment information | |||
Depreciation of property and equipment | 6,179 | 13,191 | 14,195 |
Amortization of intangible assets | 34,687 | 26,909 | 20,356 |
Additions of non-current assets except for goodwill and deferred income tax assets | 23,549 | 45,737 | 44,107 |
Technology Solutions. | |||
Segments and principal activities | |||
Revenue | 3,533,276 | 4,360,546 | 4,098,734 |
Cost of revenue | (2,195,574) | (2,775,354) | (2,658,655) |
Gross profit | 1,337,702 | 1,585,192 | 1,440,079 |
Research and development expenses | (955,201) | (1,399,415) | (1,319,826) |
Selling and marketing expenses | (241,612) | (369,948) | (550,338) |
General and administrative expenses | (375,128) | (710,165) | (741,889) |
Net impairment losses on financial and contract assets | (40,544) | (23,023) | (70,979) |
Other income, gains or loss-net | 69,183 | 71,362 | 13,830 |
Operating loss | (205,600) | (845,997) | (1,229,123) |
Finance income | 29,580 | 14,709 | 28,823 |
Finance costs | (20,086) | (36,819) | (76,327) |
Finance (costs)/income - net | 9,494 | (22,110) | (47,504) |
Share of gain of associate and joint venture - net | 4,607 | 24,852 | 9,946 |
Impairment charges on associates | (7,157) | (10,998) | |
Loss before income tax | (198,656) | (854,253) | (1,266,681) |
ASSETS | |||
Segment Assets | 5,399,653 | 6,330,769 | 7,377,469 |
Goodwill | 289,161 | 289,161 | 289,161 |
Deferred tax assets | 768,276 | 765,959 | 683,218 |
Total assets | 6,457,090 | 7,385,889 | 8,349,848 |
LIABILITIES | |||
Segment Liabilities | 2,754,711 | 3,521,957 | 4,097,004 |
Deferred tax liabilities | 2,079 | 5,196 | 9,861 |
Total liabilities | 2,756,790 | 3,527,153 | 4,106,865 |
Other segment information | |||
Depreciation of property and equipment | 68,729 | 106,118 | 121,780 |
Amortization of intangible assets | 91,746 | 135,212 | 282,418 |
Additions of non-current assets except for goodwill and deferred income tax assets | 35,532 | 98,740 | 201,940 |
Intersegment eliminations and adjustments | |||
Segments and principal activities | |||
Revenue | (11,685) | (3,084) | (697) |
Cost of revenue | 11,685 | 3,084 | 697 |
ASSETS | |||
Segment Assets | (1,383,504) | (1,355,392) | (1,041,585) |
Total assets | (1,383,504) | (1,355,392) | (1,041,585) |
LIABILITIES | |||
Segment Liabilities | (24,280) | (15,952) | (60,465) |
Total liabilities | ¥ (24,280) | ¥ (15,952) | ¥ (60,465) |
Segment information and reven_4
Segment information and revenue - Revenue from contract with customer (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | ¥ 3,521,591 | ¥ 4,357,462 | ¥ 4,098,037 |
Implementation | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 834,620 | 861,820 | 733,648 |
Operation support services | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 861,056 | 1,140,727 | 1,097,719 |
Business origination services | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 132,112 | 383,723 | 450,597 |
Risk management services | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 320,462 | 414,849 | 534,071 |
Cloud services platform | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 1,245,952 | 1,315,819 | 1,050,179 |
Post implementation support services | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 52,012 | 50,983 | 49,447 |
Others | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | ¥ 75,377 | ¥ 189,541 | ¥ 182,376 |
Segment information and reven_5
Segment information and revenue - Revenue by timing of transfer of services (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | ¥ 3,521,591 | ¥ 4,357,462 | ¥ 4,098,037 |
At a point in time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 806,029 | 1,400,988 | 1,565,195 |
Over time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 2,715,562 | 2,956,474 | 2,532,842 |
Implementation | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 834,620 | 861,820 | 733,648 |
Implementation | At a point in time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 37,804 | 36,266 | |
Implementation | Over time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 796,816 | 825,554 | 733,648 |
Operation support services | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 861,056 | 1,140,727 | 1,097,719 |
Operation support services | At a point in time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 240,366 | 376,784 | 399,523 |
Operation support services | Over time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 620,690 | 763,943 | 698,196 |
Business origination services | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 132,112 | 383,723 | 450,597 |
Business origination services | At a point in time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 132,112 | 383,723 | 450,597 |
Risk management services | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 320,462 | 414,849 | 534,071 |
Risk management services | At a point in time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 320,462 | 414,849 | 534,071 |
Cloud services platform | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 1,245,952 | 1,315,819 | 1,050,179 |
Cloud services platform | Over time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 1,245,952 | 1,315,819 | 1,050,179 |
Post implementation support services | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 52,012 | 50,983 | 49,447 |
Post implementation support services | Over time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 52,012 | 50,983 | 49,447 |
Others | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 75,377 | 189,541 | 182,376 |
Others | At a point in time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | 75,285 | 189,366 | 181,004 |
Others | Over time | |||
Disaggregation of revenue from contracts with customers | |||
Revenue from contracts with customers | ¥ 92 | ¥ 175 | ¥ 1,372 |
Segment information and reven_6
Segment information and revenue - Major customers fees on lending solution services (Details) - Service fees on lending solution services | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of revenue from contracts with customers | |||
Percentage of entity's revenue | 64.48% | 66.89% | 67.18% |
Contributed by Ping An Group | |||
Disaggregation of revenue from contracts with customers | |||
Percentage of entity's revenue | 57.02% | 56.60% | 56.03% |
Lufax Holding Ltd ("Lufax" and its subsidiaries) | |||
Disaggregation of revenue from contracts with customers | |||
Percentage of entity's revenue | 7.46% | 10.29% | 11.15% |
Segment information and reven_7
Segment information and revenue - Interest and commission income (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Virtual Bank Business | |||
Segment information and revenue | |||
Interest and commission income | ¥ 145,917 | ¥ 106,540 | ¥ 34,320 |
Segment information and reven_8
Segment information and revenue - Contract assets and liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contract assets | |||
Contract assets | ¥ 153,204 | ¥ 182,480 | |
Impairment loss allowance | (57,379) | (59,852) | |
Current contract assets, net | 95,825 | 122,628 | |
Contract liabilities | |||
Contract liabilities | 155,689 | 186,627 | |
Less: Non-current contract liabilities | (17,126) | (19,977) | |
Current contract liabilities | 138,563 | 166,650 | |
Revenue from performance obligations satisfied or partially satisfied in previous years | 0 | 0 | ¥ 0 |
Implementation | |||
Contract assets | |||
Contract assets | 137,566 | 163,769 | |
Impairment loss allowance | (50,712) | (52,385) | |
Contract liabilities | |||
Current contract liabilities | 37,427 | 42,014 | |
Transaction based and support revenue | |||
Contract assets | |||
Contract assets | 15,638 | 18,711 | |
Impairment loss allowance | (6,667) | (7,467) | |
Contract liabilities | |||
Current contract liabilities | 118,262 | 144,613 | |
Business origination services | |||
Contract assets | |||
Contract assets | 1,404 | ||
Operation support services | |||
Contract assets | |||
Contract assets | 12,149 | 12,085 | |
Impairment loss allowance | (4,750) | (4,779) | |
Contract liabilities | |||
Current contract liabilities | 69,825 | 87,562 | |
Post implementation support services | |||
Contract assets | |||
Contract assets | 3,489 | 5,222 | |
Impairment loss allowance | (1,917) | (2,688) | |
Contract liabilities | |||
Current contract liabilities | 10,609 | 21,679 | |
Risk management services | |||
Contract liabilities | |||
Current contract liabilities | 18,801 | 20,997 | |
Others | |||
Contract liabilities | |||
Current contract liabilities | ¥ 19,027 | ¥ 14,375 |
Segment information and reven_9
Segment information and revenue - Revenue recognized in relation to contract liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment information and revenue | |||
Revenue recognized that was included in the contract liability balance at the beginning of the year | ¥ 166,650 | ¥ 153,844 | ¥ 138,547 |
Segment information and reve_10
Segment information and revenue - Remaining performance obligations of long-term contracts (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Segment information and revenue | |||
Aggregate amount of the transaction price allocated to longterm contracts that are partially or fully unsatisfied at the end of each year | ¥ 551,775 | ¥ 1,051,690 | ¥ 610,516 |
Expected to be recognized within one year | |||
Segment information and revenue | |||
Aggregate amount of the transaction price allocated to longterm contracts that are partially or fully unsatisfied at the end of each year | 386,278 | 670,991 | 455,294 |
Expected to be recognized in one to two years | |||
Segment information and revenue | |||
Aggregate amount of the transaction price allocated to longterm contracts that are partially or fully unsatisfied at the end of each year | 112,605 | 237,126 | 89,762 |
Expected to be recognized in two to three years | |||
Segment information and revenue | |||
Aggregate amount of the transaction price allocated to longterm contracts that are partially or fully unsatisfied at the end of each year | 38,900 | 99,208 | 33,937 |
Expected to be recognized beyond three years | |||
Segment information and revenue | |||
Aggregate amount of the transaction price allocated to longterm contracts that are partially or fully unsatisfied at the end of each year | ¥ 13,992 | ¥ 44,365 | ¥ 31,523 |
Expenses by nature - (Details)
Expenses by nature - (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses by nature | |||
Technology service fees | ¥ 1,689,549 | ¥ 2,261,498 | ¥ 2,021,238 |
Employee benefit expenses (Note 8) | 1,302,848 | 1,601,989 | 1,629,375 |
Outsourcing labor costs | 426,148 | 528,582 | 437,081 |
Amortization of intangible assets (Note 14) | 126,433 | 162,121 | 302,774 |
Depreciation of property and equipment (Note 13) | 74,908 | 119,309 | 135,975 |
Purchase costs of products | 60,902 | 183,956 | 176,224 |
Business origination fees to channel partners | 53,419 | 251,427 | 276,966 |
Travelling expenses | 40,633 | 38,873 | 76,987 |
Marketing and advertising fees | 38,183 | 50,246 | 110,775 |
Professional service fees | 32,564 | 50,596 | 48,001 |
Auditor's remuneration | |||
-Audit related | 17,961 | 16,501 | 14,657 |
-Non-audit | 1,693 | 3,150 | 1,957 |
Impairment loss of intangible assets (Note 14) | 5,851 | 10,208 | 5,646 |
Listing expenses | 69,857 | 12,467 | |
Others | 182,533 | 134,431 | 228,666 |
Total cost of revenue, research and development expenses, selling and marketing expenses, general and administrative expenses | ¥ 4,053,625 | ¥ 5,482,744 | ¥ 5,478,789 |
Expenses by nature - Research a
Expenses by nature - Research and development costs (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Research and development costs | |||
Employee benefit expenses | ¥ 351,475 | ¥ 469,320 | ¥ 514,456 |
Technology service fees | 597,244 | 946,700 | 859,324 |
Amortization of intangible assets | 4,438 | 6,282 | 3,396 |
Depreciation of property and equipment | 7,023 | 14,168 | 11,182 |
Impairment loss of intangible assets | 2,004 | 3,837 | 3,747 |
Others | 14,726 | 22,334 | 23,200 |
Amounts incurred | 976,910 | 1,462,641 | 1,415,305 |
Less: capitalized | |||
Employee benefit expenses | (3,892) | (19,827) | (45,016) |
Technology service fees | (17,817) | (25,123) | (17,271) |
Capitalized research and development costs | (21,709) | (44,950) | (62,287) |
Research and development costs | ¥ 955,201 | ¥ 1,417,691 | ¥ 1,353,018 |
Employee benefit expenses (Deta
Employee benefit expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee benefit expenses | |||
Wages and salaries | ¥ 971,060 | ¥ 1,235,714 | ¥ 1,276,205 |
Welfare and other benefits | 319,671 | 353,099 | 330,552 |
Share-based payments (Note 27) | 12,117 | 13,176 | 22,618 |
Employee benefit expenses | ¥ 1,302,848 | ¥ 1,601,989 | ¥ 1,629,375 |
Other income, gains or loss -_3
Other income, gains or loss - net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other income, gains or loss - net | |||
Net foreign exchange gain/ (loss) | ¥ (11,171) | ¥ (312,843) | ¥ 77,143 |
Government grants and tax rebates (Note a) | 41,454 | 58,013 | 51,080 |
Net gain on financial assets at fair value through profit or loss | 20,007 | 30,687 | 45,644 |
Loss on disposal of property and equipment and intangible asset | (6,058) | (6,198) | (266) |
Remeasurement of redemption liability (Note 28(ii)) | 37,874 | ||
Guarantee gain, net | 10,757 | ||
Net (loss)/gain on derivatives | 30,592 | 262,769 | (169,545) |
Others | (2,969) | 516 | (892) |
Other income, gains or loss-net | ¥ 71,855 | ¥ 70,818 | ¥ 13,921 |
Other income, gains or loss -_4
Other income, gains or loss - net - Government grants and tax rebates (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income Gains Or Losses [Line items] | |||
Government grants | ¥ 23,922 | ¥ 27,421 | ¥ 28,871 |
Tax rebates | 17,532 | 30,592 | 22,209 |
Government grants and tax rebates (Note a) | 41,454 | 58,013 | 51,080 |
Technology development incentives | |||
Other Income Gains Or Losses [Line items] | |||
Government grants | 12,906 | 10,493 | 14,391 |
Operation subsidies | |||
Other Income Gains Or Losses [Line items] | |||
Government grants | ¥ 11,016 | ¥ 16,928 | ¥ 14,480 |
Finance costs - net (Details)
Finance costs - net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance income | |||
Interest income on bank deposits | ¥ 29,580 | ¥ 14,709 | ¥ 28,823 |
Finance costs | |||
Interest expense on borrowings | (12,073) | (17,303) | (56,534) |
Interest expense on lease liabilities | (3,448) | (7,578) | (5,803) |
Interest expense on redemption liability | (4,014) | (10,287) | (12,406) |
Bank charges | (997) | (2,005) | (1,894) |
Total finance costs | (20,532) | (37,173) | (76,637) |
Finance (costs)/income - net | ¥ 9,048 | ¥ (22,464) | ¥ (47,814) |
Income tax benefit_(expense) (D
Income tax benefit/(expense) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax benefit/(expense) | |||
Current income tax | ¥ (15,196) | ¥ (25,259) | ¥ (16,780) |
Deferred income tax | 5,434 | 87,406 | 128,875 |
Income tax benefit/(expense) | ¥ (9,762) | ¥ 62,147 | ¥ 112,095 |
Income tax benefit_ (expense) -
Income tax benefit/ (expense) - Tax on the Group's loss before income tax differs from the theoretical amount statutory tax rate applicable to loss of the consolidated entities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax benefit/(expense) | |||
Statutory income tax rate (as a percent) | 25% | 25% | 25% |
Loss before income tax | ¥ 361,714 | ¥ 990,173 | ¥ 1,442,608 |
Tax calculated at PRC statutory income tax rate of 25% | 90,429 | 247,543 | 360,652 |
Differential of income tax rates applicable to subsidiaries | (36,590) | (119,211) | (161,199) |
Expense not deductible for tax purposes | (3,863) | (5,659) | (10,169) |
Incomes not subject to tax | 191 | 542 | 1,732 |
Tax losses and temporary differences for which no deferred income tax asset was recognized | (73,942) | (73,690) | (87,237) |
Derecognition of deferred tax assets on tax losses | (23) | ||
Additional deductible allowance for research and development expenses | 12,474 | 10,164 | 8,255 |
Utilization of previously unrecognized tax losses | 1,539 | 2,458 | 84 |
Income tax benefit/(expense) | ¥ (9,762) | ¥ 62,147 | ¥ 112,095 |
Income tax benefit_ (expense)_2
Income tax benefit/ (expense) - Unused Tax Losses (Details) - Unused tax losses [member] - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | ¥ 2,695,910 | ¥ 2,248,748 |
Year 2023 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 118,796 | |
Year 2024 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 419,866 | 419,866 |
Year 2025 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 83,576 | 83,576 |
Year 2026 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 208,346 | 208,346 |
Year 2027 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 67,745 | 67,745 |
Year 2028 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 113,129 | 1,826 |
Year 2029 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 7,149 | 7,149 |
Year 2030 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 8,049 | 8,049 |
Year 2031 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 56,195 | 56,195 |
Year 2032 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | 122,036 | ¥ 122,036 |
Year 2033 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Unused tax losses for which no deferred tax asset has been recognized | ¥ 220,273 |
Income tax benefit_(expense) -
Income tax benefit/(expense) - Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | |
Income Taxes Disclosure | ||||||
Statutory tax rate (as a percent) | 25% | 25% | 25% | 25% | 25% | 25% |
Profits tax | ¥ 9,762 | ¥ (62,147) | ¥ (112,095) | |||
Estimated assessable profit | ¥ (361,714) | ¥ (990,173) | ¥ (1,442,608) | |||
Income Tax Expense On Undistributed Earnings | $ | $ 0 | $ 0 | $ 0 | |||
PRC | ||||||
Income Taxes Disclosure | ||||||
Statutory tax rate (as a percent) | 25% | 25% | ||||
Preferential tax rate | 15% | 15% | ||||
PRC | Bottom of range [Member] | ||||||
Income Taxes Disclosure | ||||||
Withholding tax rate | 5% | 5% | ||||
PRC | Top of range [Member] | ||||||
Income Taxes Disclosure | ||||||
Withholding tax rate | 10% | 10% | ||||
China (Guangdong) pilot free Trade Zone Qianhai & Shekou area of Shenzhen | ||||||
Income Taxes Disclosure | ||||||
Reduced income tax rate | 15% | 15% | ||||
Hongkong | ||||||
Income Taxes Disclosure | ||||||
Statutory tax rate (as a percent) | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% |
Profits tax | ¥ 0 | ¥ 0 | ¥ 0 | |||
Estimated assessable profit | ¥ 0 | ¥ 0 | ¥ 0 | |||
Singapore | ||||||
Income Taxes Disclosure | ||||||
Statutory tax rate (as a percent) | 17% | 17% | 17% | 17% | 17% | 17% |
Profits tax | ¥ 0 | ¥ 0 | ¥ 0 | |||
Estimated assessable profit | ¥ 0 | ¥ 0 | ¥ 0 | |||
Indonesia | ||||||
Income Taxes Disclosure | ||||||
Statutory tax rate (as a percent) | 22% | 22% | 22% | 22% | 22% | 22% |
Malaysia | ||||||
Income Taxes Disclosure | ||||||
Statutory tax rate (as a percent) | 24% | 24% | 24% | 24% | 24% | 24% |
Profits tax | ¥ 0 | ¥ 0 | ¥ 0 | |||
Estimated assessable profit | ¥ 0 | ¥ 0 | ¥ 0 | |||
Philippines | ||||||
Income Taxes Disclosure | ||||||
Statutory tax rate (as a percent) | 25% | 25% | 25% | 25% | 25% | 25% |
Profits tax | ¥ 0 | ¥ 0 | ¥ 0 | |||
Estimated assessable profit | ¥ 0 | ¥ 0 | ¥ 0 |
Loss per share (Details)
Loss per share (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 12, 2022 | Dec. 11, 2022 | |
Loss per share | |||||
Net loss for the year attributable to owners of the Company | ¥ | ¥ (362,715) | ¥ (872,274) | ¥ (1,281,699) | ||
Weighted average number of ordinary shares in issue | shares | 1,089,589,000 | 1,094,748,000 | 1,108,291,000 | ||
Basic loss per share | ¥ (0.33) | ¥ (0.80) | ¥ (1.16) | ||
Diluted loss per share | (0.33) | (0.80) | (1.16) | ||
Basic loss per ADS | (9.99) | (23.90) | (34.69) | ||
Diluted loss per ADS | ¥ (9.99) | ¥ (23.90) | ¥ (34.69) | ||
ADSs ratio | 30 | 30 | 3 | ||
Stock options | |||||
Loss per share | |||||
Number of shares issued | shares | 1,089,589,125 | 1,089,589,125 | 1,109,938,973 | ||
Number of ordinary shares outstanding | shares | 1,089,589,125 | 1,089,589,125 | 1,109,938,973 |
Property and equipment (Details
Property and equipment (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment | |||
Beginning of the year | ¥ 151,401 | ¥ 244,412 | |
Additions | 27,593 | 98,600 | |
Disposals, net | (19,291) | (75,711) | |
Depreciation charge | (74,908) | (119,309) | ¥ (135,975) |
Exchange difference | 281 | 3,409 | |
End of the year | 85,076 | 151,401 | 244,412 |
Gross carrying amount | |||
Property and equipment | |||
Beginning of the year | 593,936 | 697,036 | |
End of the year | 532,946 | 593,936 | 697,036 |
Accumulated depreciation and amortisation [member] | |||
Property and equipment | |||
Beginning of the year | (440,314) | (446,994) | |
End of the year | (445,930) | (440,314) | (446,994) |
Exchange Difference [Member] | |||
Property and equipment | |||
Beginning of the year | 2,221 | 5,630 | |
End of the year | 1,940 | 2,221 | 5,630 |
Office and telecommunication equipment | |||
Property and equipment | |||
Beginning of the year | 41,855 | 58,448 | |
Additions | 2,987 | 15,481 | |
Disposals, net | (877) | (9,467) | |
Depreciation charge | (18,761) | (23,027) | |
Exchange difference | 42 | 420 | |
End of the year | 25,246 | 41,855 | 58,448 |
Office and telecommunication equipment | Gross carrying amount | |||
Property and equipment | |||
Beginning of the year | 120,373 | 126,626 | |
End of the year | 111,470 | 120,373 | 126,626 |
Office and telecommunication equipment | Accumulated depreciation and amortisation [member] | |||
Property and equipment | |||
Beginning of the year | (75,862) | (65,102) | |
End of the year | (83,610) | (75,862) | (65,102) |
Office and telecommunication equipment | Exchange Difference [Member] | |||
Property and equipment | |||
Beginning of the year | 2,656 | 3,076 | |
End of the year | 2,614 | 2,656 | 3,076 |
Right-of-use properties | |||
Property and equipment | |||
Beginning of the year | 89,574 | 144,001 | |
Additions | 21,612 | 76,534 | |
Disposals, net | (17,718) | (57,952) | |
Depreciation charge | (45,082) | (75,519) | |
Exchange difference | 186 | 2,510 | |
End of the year | 48,572 | 89,574 | 144,001 |
Right-of-use properties | Gross carrying amount | |||
Property and equipment | |||
Beginning of the year | 358,173 | 461,605 | |
End of the year | 303,092 | 358,173 | 461,605 |
Right-of-use properties | Accumulated depreciation and amortisation [member] | |||
Property and equipment | |||
Beginning of the year | (269,772) | (316,267) | |
End of the year | (255,879) | (269,772) | (316,267) |
Right-of-use properties | Exchange Difference [Member] | |||
Property and equipment | |||
Beginning of the year | (1,173) | 1,337 | |
End of the year | (1,359) | (1,173) | 1,337 |
Leasehold improvements | |||
Property and equipment | |||
Beginning of the year | 19,972 | 41,963 | |
Additions | 2,994 | 6,585 | |
Disposals, net | (696) | (8,292) | |
Depreciation charge | (11,065) | (20,763) | |
Exchange difference | 53 | 479 | |
End of the year | 11,258 | 19,972 | 41,963 |
Leasehold improvements | Gross carrying amount | |||
Property and equipment | |||
Beginning of the year | 115,390 | 108,805 | |
End of the year | 118,384 | 115,390 | 108,805 |
Leasehold improvements | Accumulated depreciation and amortisation [member] | |||
Property and equipment | |||
Beginning of the year | (94,680) | (65,625) | |
End of the year | (106,441) | (94,680) | (65,625) |
Leasehold improvements | Exchange Difference [Member] | |||
Property and equipment | |||
Beginning of the year | 738 | 1,217 | |
End of the year | ¥ 685 | ¥ 738 | ¥ 1,217 |
Property and equipment - Deprec
Property and equipment - Depreciation charge (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment | |||
Depreciation of property and equipment (Note 13) | ¥ 74,908 | ¥ 119,309 | ¥ 135,975 |
Cost of sales [Member] | |||
Property and equipment | |||
Depreciation of property and equipment (Note 13) | 6,747 | 2,750 | |
Research and development expenses | |||
Property and equipment | |||
Depreciation of property and equipment (Note 13) | 7,023 | 14,168 | |
Selling and marketing expenses [Member] | |||
Property and equipment | |||
Depreciation of property and equipment (Note 13) | 4,306 | 4,814 | |
Ifrs General And Administrative Expense [Member] | |||
Property and equipment | |||
Depreciation of property and equipment (Note 13) | ¥ 56,832 | ¥ 97,577 |
Intangible assets (Details)
Intangible assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets | |||
Beginning of the year | ¥ 570,436 | ¥ 687,194 | |
Additions | 31,488 | 45,877 | |
Write-off | (5,851) | (10,208) | ¥ (5,646) |
Amortization | (126,433) | (162,121) | (302,774) |
Exchange differences | 1,731 | 9,694 | |
End of the year | 471,371 | 570,436 | 687,194 |
Cost | |||
Intangible assets | |||
Beginning of the year | 2,228,669 | ||
End of the year | 2,254,306 | 2,228,669 | |
Accumulated depreciation | |||
Intangible assets | |||
Beginning of the year | (1,663,624) | ||
End of the year | (1,790,057) | (1,663,624) | |
Exchange difference | |||
Intangible assets | |||
Beginning of the year | 5,391 | ||
End of the year | 7,122 | 5,391 | |
Application and platform | Contributed by Ping An Group | Cost | |||
Intangible assets | |||
Beginning of the year | 690,910 | ||
End of the year | 690,910 | 690,910 | |
Application and platform | Contributed by Ping An Group | Accumulated depreciation | |||
Intangible assets | |||
Beginning of the year | (690,910) | ||
End of the year | (690,910) | (690,910) | |
Application and platform, Developed internally | |||
Intangible assets | |||
Beginning of the year | 176,206 | 226,943 | |
Write-off | (1,400) | (6,371) | |
Transfer | 30,764 | 58,528 | |
Amortization | (77,975) | (110,801) | |
Exchange differences | 1,265 | 7,907 | |
End of the year | 128,860 | 176,206 | 226,943 |
Application and platform, Developed internally | Cost | |||
Intangible assets | |||
Beginning of the year | 773,332 | ||
End of the year | 802,696 | 773,332 | |
Application and platform, Developed internally | Accumulated depreciation | |||
Intangible assets | |||
Beginning of the year | (602,065) | ||
End of the year | (680,040) | (602,065) | |
Application and platform, Developed internally | Exchange difference | |||
Intangible assets | |||
Beginning of the year | 4,939 | ||
End of the year | 6,204 | 4,939 | |
Application and platform, Acquired | |||
Intangible assets | |||
Beginning of the year | 2,231 | ||
Amortization | (2,231) | ||
End of the year | 2,231 | ||
Application and platform, Acquired | Cost | |||
Intangible assets | |||
Beginning of the year | 61,078 | ||
End of the year | 61,078 | 61,078 | |
Application and platform, Acquired | Accumulated depreciation | |||
Intangible assets | |||
Beginning of the year | (61,078) | ||
End of the year | (61,078) | (61,078) | |
Purchased software | |||
Intangible assets | |||
Beginning of the year | 12,821 | 27,041 | |
Additions | 9,779 | 927 | |
Amortization | (15,509) | (15,729) | |
Exchange differences | 138 | 582 | |
End of the year | 7,229 | 12,821 | 27,041 |
Purchased software | Cost | |||
Intangible assets | |||
Beginning of the year | 149,734 | ||
End of the year | 159,513 | 149,734 | |
Purchased software | Accumulated depreciation | |||
Intangible assets | |||
Beginning of the year | (136,885) | ||
End of the year | (152,394) | (136,885) | |
Purchased software | Exchange difference | |||
Intangible assets | |||
Beginning of the year | (28) | ||
End of the year | 110 | (28) | |
Development cost in progress | |||
Intangible assets | |||
Beginning of the year | 29,179 | 45,389 | |
Additions | 21,709 | 44,950 | |
Write-off | (4,451) | (3,837) | |
Transfer | (30,764) | (58,528) | |
Exchange differences | 328 | 1,205 | |
End of the year | 16,001 | 29,179 | 45,389 |
Development cost in progress | Cost | |||
Intangible assets | |||
Beginning of the year | 28,699 | ||
End of the year | 15,193 | 28,699 | |
Development cost in progress | Exchange difference | |||
Intangible assets | |||
Beginning of the year | 480 | ||
End of the year | 808 | 480 | |
Goodwill | |||
Intangible assets | |||
Beginning of the year | 289,161 | 289,161 | |
End of the year | 289,161 | 289,161 | 289,161 |
Goodwill | Cost | |||
Intangible assets | |||
Beginning of the year | 289,161 | ||
End of the year | 289,161 | 289,161 | |
Business licenses | |||
Intangible assets | |||
Beginning of the year | 61,026 | 92,341 | |
Amortization | (30,906) | (31,315) | |
End of the year | 30,120 | 61,026 | 92,341 |
Business licenses | Cost | |||
Intangible assets | |||
Beginning of the year | 155,492 | ||
End of the year | 155,492 | 155,492 | |
Business licenses | Accumulated depreciation | |||
Intangible assets | |||
Beginning of the year | (94,466) | ||
End of the year | (125,372) | (94,466) | |
Others | |||
Intangible assets | |||
Beginning of the year | 2,043 | 4,088 | |
Amortization | (2,043) | (2,045) | |
End of the year | 2,043 | ¥ 4,088 | |
Others | Cost | |||
Intangible assets | |||
Beginning of the year | 80,263 | ||
End of the year | 80,263 | 80,263 | |
Others | Accumulated depreciation | |||
Intangible assets | |||
Beginning of the year | (78,220) | ||
End of the year | ¥ (80,263) | ¥ (78,220) |
Intangible assets - Amortizatio
Intangible assets - Amortization (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets | |||
Amortization of intangible assets | ¥ 126,433,000 | ¥ 162,121,000 | ¥ 302,774,000 |
Impairment charge on intangible assets | 5,851,000 | 10,208,000 | |
Cost of revenue | |||
Intangible assets | |||
Amortization of intangible assets | 114,512,000 | 146,466,000 | 297,406,000 |
Impairment charge on intangible assets | 3,847,000 | ||
Research and development expenses | |||
Intangible assets | |||
Amortization of intangible assets | 4,438,000 | 6,282,000 | 3,396,000 |
Impairment charge on intangible assets | 2,004,000 | ||
General and administrative expenses | |||
Intangible assets | |||
Amortization of intangible assets | ¥ 7,483,000 | ¥ 9,373,000 | ¥ 1,972,000 |
Intangible assets - Key assumpt
Intangible assets - Key assumptions used to calculate value of goodwill (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible assets | ||
Long term growth rate | 2% | 2% |
Pre-tax discount rate | 19.73% | 17.50% |
CGU Technology Solution | ||
Intangible assets | ||
Recoverable amount of the CGU exceeding its carrying amount | ¥ 1,153,821 | ¥ 781,499 |
Minimum | ||
Intangible assets | ||
Revenue growth rate | (10.00%) | (15.00%) |
Profit Margin | (2.00%) | (15.00%) |
Maximum | ||
Intangible assets | ||
Revenue growth rate | 13% | 13% |
Profit Margin | 14% | 10% |
Intangible assets - Possible ch
Intangible assets - Possible changes of key assumptions (Details) - CGU Technology Solution - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible assets | ||
Revenue growth rate decrease | 5% | 5% |
Profit margin decrease | 1% | 1% |
Long term growth rate decrease | 1% | 1% |
Pre-tax discount rate increase | 1% | 1% |
Recoverable amount of the CGU exceeding its carrying amount Recoverable amount of the CGU exceeding its carrying amount | ¥ 1,153,821 | ¥ 781,499 |
Revenue growth rate | ||
Intangible assets | ||
Recoverable amount of the CGU exceeding its carrying amount Recoverable amount of the CGU exceeding its carrying amount | 597,067 | 373,790 |
Profit Margin | ||
Intangible assets | ||
Recoverable amount of the CGU exceeding its carrying amount Recoverable amount of the CGU exceeding its carrying amount | 886,786 | 459,556 |
Long term growth rate. | ||
Intangible assets | ||
Recoverable amount of the CGU exceeding its carrying amount Recoverable amount of the CGU exceeding its carrying amount | 1,039,101 | 669,058 |
Pre-tax discount rate | ||
Intangible assets | ||
Recoverable amount of the CGU exceeding its carrying amount Recoverable amount of the CGU exceeding its carrying amount | ¥ 989,962 | ¥ 616,950 |
Investments accounted for usi_3
Investments accounted for using the equity method (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Nov. 24, 2022 CNY (¥) | Feb. 20, 2020 CNY (¥) | Aug. 23, 2019 CNY (¥) | Aug. 23, 2019 JPY (¥) | Mar. 28, 2017 CNY (¥) | Mar. 31, 2020 CNY (¥) | Jan. 31, 2019 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Investment in associate | |||||||||||
At beginning of year | ¥ 199,200,000 | ¥ 184,907,000 | ¥ 172,757,000 | ||||||||
Share of gain of associate | 7,157,000 | 25,291,000 | 12,150,000 | ||||||||
Impairment charges on associate | (7,157,000) | (10,998,000) | |||||||||
Disposal | (199,200,000) | ||||||||||
At end of year | 199,200,000 | 184,907,000 | ¥ 172,757,000 | ||||||||
Investment in joint venture | |||||||||||
At beginning of year | 439,000 | 2,976,000 | |||||||||
Additions | 2,550,000 | ||||||||||
Share of losses of joint venture | (2,550,000) | ¥ (439,000) | (2,204,000) | ||||||||
Exchange difference | (333,000) | ||||||||||
At end of year | ¥ 439,000 | 2,976,000 | |||||||||
Capital invested | 2,550,000 | ||||||||||
Equity Transfer Agreement | |||||||||||
Investment in associate | |||||||||||
Percentage of equiyt interest | 40% | ||||||||||
Receivable consideration from sale of investment | ¥ 199,200,000 | ||||||||||
Puhui Lixin | |||||||||||
Investment in associate | |||||||||||
Additions | ¥ 60,000,000 | ¥ 100,000,000 | |||||||||
Gain on dilution of interest in associate | ¥ 2,511,000 | ||||||||||
Investing a capital amount | ¥ 40,000,000 | ||||||||||
Percentage of equiyt interest | 31.82% | 40% | 35% | ||||||||
Pingan Puhui / Puhui Lixin | |||||||||||
Investment in associate | |||||||||||
Additions | ¥ 40,000,000 | ||||||||||
SBI Japan | |||||||||||
Investment in joint venture | |||||||||||
Capital invested | ¥ 4,321,000 | ¥ 65,100,000 | |||||||||
Percentage of equity interest | 31% | 31% | |||||||||
Open Portal Guangxi | |||||||||||
Investment in associate | |||||||||||
Additions | ¥ 2,550,000 | ¥ 2,040,000 | |||||||||
Investment in joint venture | |||||||||||
Percentage of equity interest | 51% | ||||||||||
Digital Guagnxi / Open Portal Guangxi | |||||||||||
Investment in joint venture | |||||||||||
Percentage of equity interest | 49% |
Investments accounted for usi_4
Investments accounted for using the equity method - Summarised financial information for associate (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summarised balance sheet | |||
Total assets | ¥ 8,068,358 | ¥ 8,882,382 | ¥ 9,340,607 |
Total liabilities | (5,120,566) | (5,604,327) | (5,505,525) |
Summarised income statement | |||
Operating income | ¥ (368,212) | (981,563) | (1,404,740) |
Associate | |||
Summarised balance sheet | |||
Total assets | 1,686,575 | 1,075,852 | |
Total liabilities | (1,230,475) | (682,979) | |
Net assets | 456,100 | 392,873 | |
Summarised income statement | |||
Operating income | 144,762 | 96,372 | |
Profit or loss from continuing operations | ¥ 63,228 | ¥ 30,375 | |
Group's share % | 40% | 40% | |
Group's share in net assets | ¥ 182,440 | ¥ 157,149 | |
Goodwill | 27,758 | 27,758 | |
Share capital investment | 210,198 | 184,907 | |
Less: impairment charges on associate | (10,998) | ||
Carrying amount | ¥ 199,200 | ¥ 184,907 |
Financial instruments by cate_3
Financial instruments by category (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about financial instruments | ||
Financial assets | ¥ 6,391,260 | ¥ 6,810,333 |
Financial liabilities | 3,885,768 | 3,672,469 |
Liabilities at amortized cost | Trade and other payables (excluding non-financial liability items) | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 1,318,449 | 1,355,329 |
Liabilities at amortized cost | Short-term borrowings | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 251,732 | 289,062 |
Liabilities at amortized cost | Customer deposits | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 2,261,214 | 1,929,183 |
Liabilities at amortized cost | Other financial liabilities from virtual bank | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 54,373 | 89,327 |
Derivative financials liability | Financial liability held at FVPL | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 9,568 | |
Financial assets at amortized cost | Trade receivables | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 710,669 | 940,989 |
Financial assets at amortized cost | Prepayments and other receivables (excluding non-financial asset items) | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 661,123 | 816,179 |
Financial assets at amortized cost | Financial assets measured at amortized cost from virtual bank | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 3,081 | 44 |
Financial assets at amortized cost | Restricted cash and time deposits over three months | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 447,564 | 343,814 |
Financial assets at amortized cost | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 1,379,473 | 1,907,776 |
Financial assets measured at fair value through other comprehensive income (FVOCI) | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 2,226,138 | 2,054,541 |
Financial assets held at FVPL | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 925,204 | 690,627 |
Derivative financial asset | Financial assets held at FVPL | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | ¥ 38,008 | ¥ 56,363 |
Financial assets measured at _4
Financial assets measured at fair value through other comprehensive income (Details) - CNY (¥) | Aug. 04, 2016 | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income | |||
Current financial asset at fair value through other comprehensive income | ¥ 2,226,138,000 | ¥ 2,054,541,000 | |
Less: Non-current financial asset measured at fair value through other comprehensive income | (1,372,685,000) | (821,110,000) | |
Financial assets measured at fair value through other-comprehensive income. | 853,453,000 | 1,233,431,000 | |
Exchange Settlement Centre Co., Ltd. | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income | |||
Equity interest acquired (as a percent) | 5% | ||
Consideration transferred | ¥ 5,000,000 | ||
Loans and advances to customers. | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income | |||
Current financial asset at fair value through other comprehensive income | 1,902,985,000 | 1,608,402,000 | |
Equity securities | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income | |||
Current financial asset at fair value through other comprehensive income | 3,204,000 | 3,204,000 | |
Debt securities | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income | |||
Current financial asset at fair value through other comprehensive income | ¥ 319,949,000 | ¥ 442,935,000 |
Leases (Details)
Leases (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Right-of-use assets | ||
Properties | ¥ 48,572,000 | ¥ 89,574,000 |
Lease liabilities | ||
Non current | 28,283,000 | 44,553,000 |
Current | 22,941,000 | 47,030,000 |
Lease liabilities | 51,224,000 | 91,583,000 |
Additions to the right-of-use assets during the year | ¥ 21,612,000 | ¥ 76,534,000 |
Weighted average lessee's incremental borrowing rate | 4.26% | 4.79% |
Leases - statement of profit or
Leases - statement of profit or loss (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Depreciation charge of rightofuse assets | ¥ 45,082,000 | ¥ 75,519,000 | ¥ 88,974,000 |
Interest expenses (included in finance cost) | 3,448,000 | 7,578,000 | 5,803,000 |
Total expenses recognised in statement of profit or loss | 48,530,000 | 83,097,000 | 94,777,000 |
Cash outflow for leases | 67,180,000 | 79,618,000 | 97,551,000 |
Expense recognized in relation to short term leases | ¥ 6,258,000 | ¥ 2,884,000 | ¥ 1,412,000 |
Trade receivables (Details)
Trade receivables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade receivables | ||
Trade receivables | ¥ 710,669 | ¥ 940,989 |
Gross carrying amount | ||
Trade receivables | ||
Trade receivables | 779,458 | 998,036 |
Impairment loss allowance | ||
Trade receivables | ||
Trade receivables | ¥ (68,789) | ¥ (57,047) |
Trade receivables - Additional
Trade receivables - Additional informations (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade receivables | ||
Total trade receivables | ¥ 779,458 | ¥ 998,036 |
Up to 1 year | ||
Trade receivables | ||
Total trade receivables | 694,157 | 932,479 |
1 to 2 years | ||
Trade receivables | ||
Total trade receivables | 55,187 | 42,752 |
2 to 3 years | ||
Trade receivables | ||
Total trade receivables | 21,103 | 13,857 |
Above 3 years | ||
Trade receivables | ||
Total trade receivables | ¥ 9,011 | ¥ 8,948 |
Prepayments and other receiva_3
Prepayments and other receivables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Prepayments and other receivables | ||||
Deposit receivable | ¥ 625,371 | ¥ 776,481 | ||
Value-added-tax deductible | 188,501 | 143,338 | ||
Advance to suppliers | 49,492 | 71,755 | ||
Advance to staff | 13,238 | 47,332 | ||
Receivables for value-added-tax paid on behalf of wealth management products | 455 | |||
Others | 41,471 | 46,519 | ||
Less: impairment loss allowance | (5,719) | (7,276) | ¥ (2,968) | ¥ (3,349) |
Total | 912,354 | 1,078,604 | ||
Less: Non-current portion of other receivables | (6,663) | |||
Total | ¥ 905,691 | ¥ 1,078,604 |
Prepayments and other receiva_4
Prepayments and other receivables - Impairment loss Allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Prepayments and other receivables | |||
Beginning of the year | ¥ (7,276) | ¥ (2,968) | ¥ (3,349) |
Reversals/(Additions) | 1,557 | (4,308) | 2 |
Write-off | 365 | ||
Exchange differences | 14 | ||
End of the year | ¥ (5,719) | ¥ (7,276) | ¥ (2,968) |
Financial assets measured at _5
Financial assets measured at amortized cost from virtual bank (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets measured at amortized cost from virtual bank | ||
Loans and advances to customers | ¥ 3,142 | ¥ 44 |
Less: expected credit loss provision | (61) | |
Financial assets measured at amortized cost, Gross | ¥ 3,081 | ¥ 44 |
Financial assets at fair valu_3
Financial assets at fair value through profit or loss (Details) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets at fair value through profit or loss | ||
Carrying amount | ¥ 925,204,000 | ¥ 690,627,000 |
Wealth management products | ||
Financial assets at fair value through profit or loss | ||
Financial assets at fair value through profit or loss | ¥ 532,147,000 | ¥ 690,627,000 |
Restricted cash and time depo_3
Restricted cash and time deposits over three months (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) |
Restricted cash | ||||
Restricted Bank Deposits | ¥ 39,005,000 | ¥ 198,320,000 | ||
Accrued interests | 446,000 | 1,238,000 | ||
Time deposits with initial terms over three months | 413,432,000 | 144,256,000 | ||
Restricted cash | 452,883,000 | 343,814,000 | ||
Less: Non-current restricted cash | (5,319,000) | |||
Restricted cash and time deposits over three months | ¥ 447,564,000 | ¥ 343,814,000 | ||
Weighted average | ||||
Restricted cash | ||||
Interest rate (in percent) | 4.48% | 4.48% | 4.61% | 4.61% |
Business guarantee | ||||
Restricted cash | ||||
Pledged bank deposits | ¥ 16,412,000 | ¥ 5,331,000 | ||
Currency forwards and swaps | ||||
Restricted cash | ||||
Pledged bank deposits | ¥ 22,594,000 | $ 3,190,000 | ¥ 192,989,000 | $ 27,710,000 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents. | ||||
Cash on hand | ¥ 12 | ¥ 12 | ||
Cash at central bank | 134,486 | 214,768 | ||
Cash at banks | 1,244,975 | 1,692,996 | ||
Cash and cash equivalents, end of the year | ¥ 1,379,473 | ¥ 1,907,776 | ¥ 1,399,370 | ¥ 3,055,194 |
Cash and cash equivalents - Pre
Cash and cash equivalents - Presented in currency (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents in currencies | ||||
Cash and cash equivalents | ¥ 1,379,473 | ¥ 1,907,776 | ¥ 1,399,370 | ¥ 3,055,194 |
USD | ||||
Cash and cash equivalents in currencies | ||||
Cash and cash equivalents | 771,502 | 313,559 | ||
RMB | ||||
Cash and cash equivalents in currencies | ||||
Cash and cash equivalents | 379,629 | 1,045,135 | ||
HKD | ||||
Cash and cash equivalents in currencies | ||||
Cash and cash equivalents | 210,492 | 530,861 | ||
SGD | ||||
Cash and cash equivalents in currencies | ||||
Cash and cash equivalents | 5,796 | 13,821 | ||
IDR | ||||
Cash and cash equivalents in currencies | ||||
Cash and cash equivalents | 941 | 1,680 | ||
MYR | ||||
Cash and cash equivalents in currencies | ||||
Cash and cash equivalents | 4 | 1,585 | ||
PHP | ||||
Cash and cash equivalents in currencies | ||||
Cash and cash equivalents | ¥ 11,109 | ¥ 1,135 |
Share capital (Details)
Share capital (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Aug. 17, 2020 shares | Jan. 14, 2020 shares | Dec. 13, 2019 shares | Apr. 30, 2018 CNY (¥) item | Apr. 30, 2018 USD ($) item $ / shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2019 CNY (¥) shares | Dec. 31, 2019 USD ($) $ / shares shares | Dec. 31, 2018 CNY (¥) shares | Dec. 31, 2018 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2017 $ / shares | |
Issued | ||||||||||||||||
Beginning balance, equity | ¥ | ¥ 5,285,283,000 | |||||||||||||||
Ending balance, equity | ¥ | ¥ 3,835,082,000 | ¥ 5,285,283,000 | ||||||||||||||
Number of investors | item | 12 | 12 | ||||||||||||||
Ordinary shares | ||||||||||||||||
Authorized | ||||||||||||||||
Ordinary shares par value per share | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||||||
Authorized shares | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | |||||||||||||
Authorized share capital | $ | $ 50,000 | $ 50,000 | $ 50,000 | |||||||||||||
Issued | ||||||||||||||||
Issued shares at beginning of period | 1,169,980,661 | 1,169,980,661 | 1,097,320,664 | 1,097,320,664 | 999,999,999 | 999,999,999 | 900,000,000 | 900,000,000 | ||||||||
Increase in ordinary shares | 62,100,000 | 10,560,000 | 93,600,000 | 72,660,000 | 72,660,000 | 3,720,665 | 3,720,665 | 99,999,999 | 99,999,999 | |||||||
Newly issued ordinary shares upon initial public offering | 93,600,000 | 93,600,000 | ||||||||||||||
Issued shares at end of period | 1,169,980,653 | 1,169,980,653 | 1,169,980,661 | 1,169,980,661 | 1,097,320,664 | 1,097,320,664 | 999,999,999 | 999,999,999 | ||||||||
Surrendered ordinary shares | (8) | (8) | (3) | (3) | ||||||||||||
Surrendered ordinary value | ¥ 0 | $ 0 | ||||||||||||||
Beginning balance, equity | ¥ 78,008 | $ 11,700 | 72,975 | 10,973 | ¥ 66,169 | $ 10,000 | ¥ 59,838 | $ 9,000 | ||||||||
Issuance of ordinary shares | 5,033 | 727 | 257 | 37 | 6,331 | 1,000 | ||||||||||
Issuance of ordinary shares upon initial public offering | 6,549 | 936 | ||||||||||||||
Ending balance, equity | ¥ 78,008 | $ 11,700 | ¥ 78,008 | $ 11,700 | ¥ 72,975 | $ 10,973 | ¥ 66,169 | $ 10,000 | ||||||||
Total consideration | ¥ 4,750,965,000 | $ 750,000,000 | ||||||||||||||
Price per share (in USD per share) | $ / shares | $ 7.5 |
Share capital - National Dream
Share capital - National Dream Limited (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Apr. 02, 2021 shares | Apr. 01, 2021 shares | Dec. 24, 2020 shares | Dec. 11, 2020 shares | Aug. 17, 2020 shares | Jan. 14, 2020 shares | Dec. 13, 2019 shares | Nov. 27, 2019 USD ($) shares | Nov. 27, 2019 CNY (¥) shares | Nov. 26, 2019 USD ($) shares | Nov. 26, 2019 CNY (¥) shares | Mar. 11, 2019 USD ($) shares | Mar. 11, 2019 CNY (¥) shares | Apr. 30, 2018 USD ($) | Apr. 30, 2018 CNY (¥) | Dec. 31, 2020 shares | Dec. 31, 2019 shares | Dec. 31, 2018 shares | Dec. 31, 2021 shares | Dec. 31, 2017 shares | |
Share subscription agreement, September 2019 | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Total consideration | $ 5,284,830 | ¥ 37,175,000 | ||||||||||||||||||
National Dream Limited | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Total consideration | $ 13,114,000 | ¥ 88,030,000 | ||||||||||||||||||
Increase in ordinary shares | 1,748,501 | 1,748,501 | ||||||||||||||||||
Great Lakes Limited | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Total consideration | $ 9,506,400 | ¥ 66,877,000 | ||||||||||||||||||
Increase in ordinary shares | 1,267,520 | 1,267,520 | ||||||||||||||||||
Blossom View Limited | Share subscription agreement, September 2019 | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Increase in ordinary shares | 563,714 | 563,714 | ||||||||||||||||||
Gold Planning Limited | Share subscription agreement, September 2019 | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Increase in ordinary shares | 140,930 | 140,930 | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Total consideration | $ 750,000,000 | ¥ 4,750,965,000 | ||||||||||||||||||
Increase in ordinary shares | 62,100,000 | 10,560,000 | 93,600,000 | 72,660,000 | 3,720,665 | 99,999,999 | ||||||||||||||
Underwritten public | 1,169,980,661 | 1,097,320,664 | 999,999,999 | 1,169,980,653 | 900,000,000 | |||||||||||||||
Company bought back and cancelled | 8 | 8 | 3 | 3 | ||||||||||||||||
ADSs | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Increase in ordinary shares | 3,520,000 | 31,200,000 | ||||||||||||||||||
Underwritten public offerings | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Underwritten public | 18,000,000 | |||||||||||||||||||
Over-allotment options | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Underwritten public | 2,700,000 |
Other reserves (Details)
Other reserves (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reserves within equity [line items] | |||
Balance at Beginning | ¥ 10,953,072 | ¥ 10,512,631 | ¥ 10,639,931 |
Other comprehensive income, net of tax | |||
Foreign currency translation differences | 26,216 | 426,145 | (152,542) |
Fair value changes on financial assets measured at fair value through other comprehensive income | 500 | 5,324 | (1,812) |
Value of employee services and business cooperation arrangements (Note 27) | 14,497 | 13,361 | 25,409 |
Vesting of shares under Restricted Share Unit Scheme | (4,720) | (700) | |
Exercise of shares under share option Scheme | 331 | 2,345 | |
Transactions with non-controlling interests | (4,434) | ||
Balance at Ending | 10,989,851 | 10,953,072 | 10,512,631 |
Recapitalization reserve | |||
Disclosure of reserves within equity [line items] | |||
Balance at Beginning | 1,200,000 | 1,200,000 | 1,200,000 |
Other comprehensive income, net of tax | |||
Balance at Ending | 1,200,000 | 1,200,000 | 1,200,000 |
Share premium | |||
Disclosure of reserves within equity [line items] | |||
Balance at Beginning | 9,627,159 | 9,627,159 | 9,627,159 |
Other comprehensive income, net of tax | |||
Balance at Ending | 9,627,159 | 9,627,159 | 9,627,159 |
Sharebased compensation reserve | |||
Disclosure of reserves within equity [line items] | |||
Balance at Beginning | 209,603 | 200,631 | 173,577 |
Other comprehensive income, net of tax | |||
Value of employee services and business cooperation arrangements (Note 27) | 14,497 | 13,361 | 25,409 |
Vesting of shares under Restricted Share Unit Scheme | (4,720) | (700) | |
Exercise of shares under share option Scheme | 331 | 2,345 | |
Balance at Ending | 224,100 | 209,603 | 200,631 |
Foreign currency translation differences | |||
Disclosure of reserves within equity [line items] | |||
Balance at Beginning | 140,471 | (285,674) | (133,132) |
Other comprehensive income, net of tax | |||
Foreign currency translation differences | 26,216 | 426,145 | (152,542) |
Balance at Ending | 166,687 | 140,471 | (285,674) |
Others | |||
Disclosure of reserves within equity [line items] | |||
Balance at Beginning | (224,161) | (229,485) | (227,673) |
Other comprehensive income, net of tax | |||
Fair value changes on financial assets measured at fair value through other comprehensive income | 500 | 5,324 | (1,812) |
Transactions with non-controlling interests | (4,434) | ||
Balance at Ending | ¥ (228,095) | ¥ (224,161) | ¥ (229,485) |
Share-based payments (Details)
Share-based payments (Details) - CNY (¥) | 1 Months Ended | 12 Months Ended | ||||
Sep. 10, 2019 | Nov. 07, 2017 | Jan. 01, 2017 | Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement | ||||||
Shares available for award grant purpose | 35,099,420 | |||||
Shares issued under incentive scheme | 101,271,020 | |||||
Consideration recognized for shares held for share option scheme | ¥ 88,280,000 | |||||
Period for which the share option plan is effective | 10 years | |||||
Repurchase of shares, shares | 8,020,000 | |||||
Repurchase of shares, value | ¥ (74,992,000) | |||||
Adr | ||||||
Disclosure of terms and conditions of share-based payment arrangement | ||||||
Repurchase of shares, shares | 24,070,000 | |||||
Shares recognized | ||||||
Disclosure of terms and conditions of share-based payment arrangement | ||||||
Shares held for share option scheme | 66,171,600 | |||||
Consideration recognized for shares held for share option scheme | ¥ 88,280,000 | ¥ 88,280,000 | ||||
Percentage of options vested | 100% | |||||
Options vesting period | 4 years | |||||
Shares recognized | Minimum | ||||||
Disclosure of terms and conditions of share-based payment arrangement | ||||||
Option exercise period | 12 months | |||||
Shares recognized | Maximum | ||||||
Disclosure of terms and conditions of share-based payment arrangement | ||||||
Option exercise period | 10 years | |||||
Shares reserved | ||||||
Disclosure of terms and conditions of share-based payment arrangement | ||||||
Shares held for share option scheme | 66,171,600 | |||||
Percentage of options vested | 100% | |||||
Options vesting period | 4 years | |||||
Xin Ding Heng | ||||||
Disclosure of terms and conditions of share-based payment arrangement | ||||||
Shares held for share option scheme | 66,171,600 |
Share-based payments - Share-ba
Share-based payments - Share-based compensation expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation expenses recognized | |||
Share-based compensation expense - Total | ¥ 14,497 | ¥ 13,361 | ¥ 25,409 |
Share-based compensation expense - Value of employee's services | 12,117 | 13,176 | 22,618 |
Share-based compensation expense - Value of non-employee's services | 2,380 | 185 | 2,791 |
Cost of revenue | |||
Share-based compensation expenses recognized | |||
Share-based compensation expense - Total | 3,233 | 935 | |
Research and development expenses | |||
Share-based compensation expenses recognized | |||
Share-based compensation expense - Total | 2,975 | 5,185 | |
Selling and marketing expenses | |||
Share-based compensation expenses recognized | |||
Share-based compensation expense - Total | 1,938 | 1,002 | 2,854 |
General and administrative expenses | |||
Share-based compensation expenses recognized | |||
Share-based compensation expense - Total | ¥ 6,351 | ¥ 12,359 | ¥ 16,435 |
Share-based payments - Movement
Share-based payments - Movements of share options (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 EquityInstruments CNY (¥) ¥ / shares | Dec. 31, 2022 EquityInstruments CNY (¥) ¥ / shares | Dec. 31, 2021 EquityInstruments | |
Disclosure of terms and conditions of share-based payment arrangement | |||
At the beginning of the year | ¥ | 10,137,344 | ||
At the end of the year | ¥ | 8,141,810 | 10,137,344 | |
Disclosure of number and weighted average remaining contractual life of outstanding share options | |||
Weighted-average exercise price | ¥ / shares | ¥ 18.02 | ¥ 21 | |
Weighted-average remaining contractual life | 4 years 2 months 19 days | 5 years 3 months 10 days | |
Stock options | |||
Disclosure of terms and conditions of share-based payment arrangement | |||
At the beginning of the year | 10,137,344 | 12,725,995 | 19,459,994 |
Exercised | (621,930) | (5,181,306) | |
Forfeited | (1,995,534) | (1,966,721) | (1,552,693) |
At the end of the year | 8,141,810 | 10,137,344 | 12,725,995 |
Share-based payments - Share op
Share-based payments - Share options outstanding (Details) | 12 Months Ended | |
Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2022 CNY (¥) | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Number of share options | 8,141,810,000 | 10,137,344,000 |
RMB1.33 | ||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Exercise price | ¥ / shares | ¥ 1.33 | |
Fair value of options | ¥ 0.62 | |
Number of share options | 944,490,000 | 977,951,000 |
RMB2.00 | ||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Exercise price | ¥ / shares | ¥ 2 | |
Fair value of options | ¥ 0.52 | |
Number of share options | 4,576,500,000 | 5,295,021,000 |
RMB 52.00, granted In 2018 | ||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Exercise price | ¥ / shares | ¥ 52 | |
Fair value of options | ¥ 26 | |
Number of share options | 2,068,320,000 | 3,044,462,000 |
RMB 52.00, granted In 2019 | ||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||
Exercise price | ¥ / shares | ¥ 52 | |
Fair value of options | ¥ 23.42 | |
Number of share options | 552,500,000 | 819,910,000 |
Share-based payments - Key assu
Share-based payments - Key assumptions of the share option (Details) - Binomial option pricing model | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement | |||
Discount rate | 17% | 17% | 24% |
Risk-free interest rate | 3% | 4% | 4% |
Volatility | 46% | 51% | 52% |
Dividend yield | 0% | 0% | 0% |
Share-based payments - Restrict
Share-based payments - Restricted Share Units (Details) - Restricted Share Units Scheme | Sep. 10, 2019 |
Disclosure of terms and conditions of share-based payment arrangement | |
Percentage of options vested | 100% |
Options vesting period | 4 years |
Share-based payments - Moveme_2
Share-based payments - Movements of Restricted Share Units (Details) - Restricted Share Units Scheme - EquityInstruments | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement | |||
At the beginning of the year | 36,232,094 | 16,552,829 | 1,751,702 |
Granted | 230,000 | 28,745,900 | 17,033,120 |
Vested | (3,538,551) | (524,358) | |
Forfeited | (5,935,971) | (5,528,084) | (1,707,635) |
At the end of the year | 30,526,123 | 36,232,094 | 16,552,829 |
Share-based payments - Fair val
Share-based payments - Fair value of the restricted share units (Details) - Restricted Share Units Scheme | Dec. 31, 2023 CNY (¥) EquityInstruments | Dec. 31, 2022 EquityInstruments | Dec. 31, 2021 EquityInstruments | Dec. 31, 2020 EquityInstruments |
Disclosure of terms and conditions of share-based payment arrangement | ||||
Number of restricted share units | 30,526,123 | 36,232,094 | 16,552,829 | 1,751,702 |
September 2019 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 35.22 | |||
Number of restricted share units | 158,807 | 204,503 | ||
January 2020 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 16.18 | |||
Number of restricted share units | 11,502 | 11,509 | ||
April 2020 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 16.98 | |||
Number of restricted share units | 42,505 | 45,008 | ||
July 2020 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 38.67 | |||
Number of restricted share units | 1,500 | 1,502 | ||
June 2021, One | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 13.69 | |||
Number of restricted share units | 155,040 | 248,043 | ||
June 2021, Two | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 14.31 | |||
Number of restricted share units | 7,500 | 7,502 | ||
June 2021, Three | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 14.93 | |||
Number of restricted share units | 112,500 | 112,500 | ||
July 2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 15.16 | |||
Number of restricted share units | 99,001 | 147,751 | ||
September 2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 5.53 | |||
Number of restricted share units | 3,335,253 | 4,198,965 | ||
October 2021, One | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 5.25 | |||
Number of restricted share units | 70,001 | 116,593 | ||
October 2021, Two | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 4.68 | |||
Number of restricted share units | 3,444,091 | 3,973,655 | ||
January 2022, One | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 2.40 | |||
Number of restricted share units | 103,397 | 126,862 | ||
January 2022, Two | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 2.41 | |||
Number of restricted share units | 1,740,001 | 1,740,001 | ||
January 2022, Three | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 3.29 | |||
Number of restricted share units | 462,265 | 567,700 | ||
January 2022, Four | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 2.64 | |||
Number of restricted share units | 365,760 | 300,000 | ||
April 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 1.78 | |||
Number of restricted share units | 130,000 | 130,000 | ||
July 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 2.72 | |||
Number of restricted share units | 40,000 | 40,000 | ||
October 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 0.98 | |||
Number of restricted share units | 80,000 | 80,000 | ||
December 2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 0.81 | |||
Number of restricted share units | 19,977,000 | 24,180,000 | ||
January 2023 | ||||
Disclosure of terms and conditions of share-based payment arrangement | ||||
Fair value of restricted share units | ¥ | ¥ 0.71 | |||
Number of restricted share units | 190,000 |
Share-based payments - Key as_2
Share-based payments - Key assumptions of restricted stock units (Details) - Restricted Share Units Scheme - Monte carlo method | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement | |||
Dividend yield | 0% | 0% | 0% |
Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement | |||
Risk-free interest rate | 2% | 2% | 2% |
Volatility | 48% | 43% | 43% |
Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement | |||
Risk-free interest rate | 3% | 3% | 3% |
Volatility | 49% | 49% | 49% |
Trade and other payables (Detai
Trade and other payables (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Trade and other payables. | ||
Due to related parties | ¥ 119,434 | ¥ 442,007 |
Due to third parties | 127,125 | 311,610 |
Trade payables (i) | 246,559 | 753,617 |
Redemption liability (ii, iii) | 232,951 | 243,937 |
Accrued expenses | 436,846 | 516,240 |
Security deposits | 136,813 | 160,814 |
Lease liabilities (Note 18(a)) | 51,224 | 91,583 |
Amounts payable for purchase of shares held for share incentive scheme (Note 27) | 88,280 | |
Income and other tax payables | 45,057 | 51,913 |
Amounts due to related parties | 744,604 | 644,900 |
Others | 115,517 | 112,822 |
Total trade and other payables | 2,009,571 | 2,664,106 |
Lease liabilities | (28,283) | (44,553) |
Amounts payable for purchase of shares held for share incentive scheme (Note 27) | (88,280) | |
Total trade and other non-current payables | (28,283) | (132,833) |
Trade and other payables | ¥ 1,981,288 | ¥ 2,531,273 |
Aging Of Trade Payables | 1 year | 1 year |
Trade and other payables - Narr
Trade and other payables - Narrative (Details) - BER Technology - CNY (¥) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | |
Trade and other payables | |||||
Remaining equity interest (as a percent) | 20% | 20% | 20% | ||
Initial redemption liability | ¥ 44,105,000 | ||||
Equity interests of BER Technology | ¥ 15,000,000 | ||||
Put option | |||||
Trade and other payables | |||||
Initial redemption liability | 183,569,000 | ||||
Remeasurement amount of redemption liability | ¥ 232,951,000 |
Short-term borrowings (Details)
Short-term borrowings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Short term borrowings | ||
Shortterm borrowings | ¥ 251,732 | ¥ 289,062 |
Weighted average | ||
Short term borrowings | ||
Interest rate (in percent) | 4.48% | 4.61% |
Customer deposits (Details)
Customer deposits (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Customer deposits | ||
Current and savings accounts | ¥ 437,153 | ¥ 243,231 |
Fixed deposit | 1,824,061 | 1,685,952 |
Customer deposits | ¥ 2,261,214 | ¥ 1,929,183 |
Other financial liabilities f_3
Other financial liabilities from virtual bank (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 HKD ($) | Dec. 31, 2022 CNY (¥) |
Other financial liabilities from virtual bank | |||
Repurchase agreements | ¥ 54,373,000 | ¥ 89,327,000 | |
Repurchase agreements secured by financial assets measured at fair value through other comprehensive income | ¥ 54,373,000 | $ 60,000,000 |
Derivative financial assets a_3
Derivative financial assets and liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments | ||
Derivative financial assets, fair value | ¥ 38,008 | ¥ 56,363 |
Derivative financial liabilities, fair value | 9,568 | |
Derivative financial assets, notional amount | 364,302 | 1,390,341 |
Derivative financial liabilities, notional amount | 208,938 | |
Foreign exchange swaps | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial assets, fair value | 388 | 19,279 |
Derivative financial liabilities, fair value | 9,568 | |
Derivative financial assets, notional amount | 5,666 | 648,404 |
Derivative financial liabilities, notional amount | 208,938 | |
Currency forwards | ||
Disclosure of detailed information about financial instruments | ||
Derivative financial assets, fair value | 37,620 | 37,084 |
Derivative financial assets, notional amount | ¥ 358,636 | ¥ 741,937 |
Dividends (Details)
Dividends (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Dividends | ||
Dividend paid | ¥ 0 | ¥ 0 |
Deferred income tax - Deferred
Deferred income tax - Deferred tax Assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movements of deferred tax assets | |||
Deferred tax assets, Opening balance | ¥ 779,395 | ¥ 704,818 | ¥ 584,694 |
Recognized in the profit or loss | 13,407 | 74,577 | 120,124 |
Deferred tax assets, Closing balance | 792,802 | 779,395 | 704,818 |
Tax losses | |||
Movements of deferred tax assets | |||
Deferred tax assets, Opening balance | 542,241 | 429,901 | 312,908 |
Recognized in the profit or loss | 40,384 | 112,340 | 116,993 |
Deferred tax assets, Closing balance | 582,625 | 542,241 | 429,901 |
Accelerated amortization of intangible assets | |||
Movements of deferred tax assets | |||
Deferred tax assets, Opening balance | 185,248 | 206,522 | 212,035 |
Recognized in the profit or loss | (27,336) | (21,274) | (5,513) |
Deferred tax assets, Closing balance | 157,912 | 185,248 | 206,522 |
Others | |||
Movements of deferred tax assets | |||
Deferred tax assets, Opening balance | 51,906 | 68,395 | 59,751 |
Recognized in the profit or loss | 359 | (16,489) | 8,644 |
Deferred tax assets, Closing balance | ¥ 52,265 | ¥ 51,906 | ¥ 68,395 |
Deferred income tax - Deferre_2
Deferred income tax - Deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Income Tax | |||
Deferred tax liabilities, Opening balance | ¥ 18,632 | ¥ 31,461 | ¥ 38,221 |
Recognized in the profit or loss | 7,973 | (12,829) | (6,760) |
Deferred tax liabilities, Closing balance | 26,605 | 18,632 | 31,461 |
Intangible assets acquired through business combination | |||
Deferred Income Tax | |||
Deferred tax liabilities, Opening balance | 5,196 | 9,861 | 20,080 |
Recognized in the profit or loss | (3,117) | (4,665) | (10,219) |
Deferred tax liabilities, Closing balance | 2,079 | 5,196 | 9,861 |
Others | |||
Deferred Income Tax | |||
Deferred tax liabilities, Opening balance | 13,436 | 21,600 | 18,141 |
Recognized in the profit or loss | 11,090 | (8,164) | 3,459 |
Deferred tax liabilities, Closing balance | ¥ 24,526 | ¥ 13,436 | ¥ 21,600 |
Deferred income tax - Deferre_3
Deferred income tax - Deferred tax offsettings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Offsetting of deferred tax assets and deferred tax liabilities | ||||
Deferred tax assets | ¥ 792,802 | ¥ 779,395 | ¥ 704,818 | ¥ 584,694 |
Set-off of deferred tax assets (Liabilities) | (24,526) | (13,436) | (21,600) | |
Deferred tax assets | 768,276 | 765,959 | 683,218 | |
Deferred tax liabilities | 26,605 | 18,632 | 31,461 | ¥ 38,221 |
Deferred tax liabilities | ¥ 2,079 | ¥ 5,196 | ¥ 9,861 |
Cash flow information - Cash us
Cash flow information - Cash used in operations (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Loss before income tax | ¥ (361,714) | ¥ (990,173) | ¥ (1,442,608) |
Depreciation and amortization | 201,341 | 281,430 | 438,749 |
Net impairment losses on financial and contract assets | 53,950 | 33,639 | 72,229 |
Net impairment losses on intangible assets | 5,851 | 10,208 | |
Losses on disposal of property and equipment and intangible asset | 6,058 | 14,490 | 266 |
Share-based payments expenses (Note 27) | 14,497 | 13,361 | 25,409 |
Net losses/(gain) on derivatives (Note 9) | (30,592) | (262,769) | 169,545 |
Net gain on financial assets at fair value through profit or loss (Note 9) | (20,007) | (30,687) | (45,644) |
Share of gain of associate and joint venture (Note 15) | (4,607) | (24,852) | (9,946) |
Impairment charges on associate(Note 15) | 7,157 | 10,998 | |
Remeasurement of redemption liability(Note 9) | (37,874) | ||
Finance costs | 19,535 | 35,168 | 74,743 |
Interest from investing activities | (26,252) | (6,646) | (22,983) |
Exchange (gain)/losses (Note 9) | 11,171 | 312,843 | (77,143) |
Changes in working capital: | |||
Trade receivables | 185,745 | (63,884) | (123,371) |
Contract assets | 29,276 | 106,135 | 45,855 |
Prepayments and other receivables | 165,244 | (335,419) | (353,480) |
Trade and other payable | (817,507) | 106,952 | 530,095 |
Contract liabilities | (30,938) | 13,365 | 17,032 |
Customer deposits | 332,031 | 579,012 | 944,318 |
Other financial liabilities from virtual bank | (34,954) | 89,327 | |
Financial assets measured at amortized cost from virtual bank | (3,098) | 13,341 | 586,953 |
Financial assets measured at fair value through other comprehensive income from virtual bank | (294,583) | (504,942) | (1,103,460) |
Payroll and welfare payables | (45,350) | (83,809) | (110,263) |
Cash used in operations | ¥ (637,746) | ¥ (720,786) | ¥ (383,704) |
Cash flow information - Non cas
Cash flow information - Non cash investing and financing activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flow information | |||
Acquisition of rightofuse properties by leasing (Note 13) | ¥ 21,612 | ¥ 76,534 | ¥ 118,030 |
Cash flow information - Gross d
Cash flow information - Gross debt (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash flow information | ||||
Restricted cash and time deposits over three months | ¥ 447,564 | ¥ 343,814 | ||
Cash and cash equivalents | 1,379,473 | 1,907,776 | ¥ 1,399,370 | ¥ 3,055,194 |
Financial assets at fair value through profit or loss | 925,204 | 690,627 | ||
Lease liabilities | (51,224) | (91,583) | ||
-due within one year | (22,941) | (47,030) | ||
-due after one year | (28,283) | (44,553) | ||
Borrowings - repayable within one year | (251,732) | (289,062) | ||
Net debt | 2,449,285 | 2,561,572 | ¥ 3,561,300 | ¥ 4,406,038 |
Cash and liquid investments | 2,752,241 | 2,942,217 | ||
Gross debt - fixed interest rates | ¥ (302,956) | ¥ (380,645) |
Cash flow information - Gross_2
Cash flow information - Gross debt reconciliation (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net debt reconciliation | |||
Net debt at the beginning of the year | ¥ 2,561,572 | ¥ 3,561,300 | ¥ 4,406,038 |
Cash flows | (141,004) | (1,147,187) | (675,111) |
Acquisition of right-of-use assets | (21,612) | (76,534) | (118,030) |
Other Changes | 50,329 | 223,993 | (51,597) |
Net debt at the end of the year | 2,449,285 | 2,561,572 | 3,561,300 |
Acquisition of subsidiaries (Note 35) | (118,030) | ||
Lease liabilities | |||
Net debt reconciliation | |||
Net debt at the beginning of the year | (91,583) | (154,890) | (134,219) |
Cash flows | 60,922 | 76,734 | 96,139 |
Acquisition of right-of-use assets | (21,612) | (76,534) | |
Other Changes | 1,049 | 63,107 | 1,220 |
Net debt at the end of the year | (51,224) | (91,583) | (154,890) |
Acquisition of subsidiaries (Note 35) | (118,030) | ||
Borrowings | |||
Net debt reconciliation | |||
Net debt at the beginning of the year | (289,062) | (815,260) | (2,283,307) |
Cash flows | 49,403 | 543,501 | 1,524,899 |
Other Changes | (12,073) | (17,303) | (56,852) |
Net debt at the end of the year | (251,732) | (289,062) | (815,260) |
Restricted cash | |||
Net debt reconciliation | |||
Net debt at the beginning of the year | 343,814 | 1,060,427 | 2,280,499 |
Cash flows | 77,533 | (788,828) | (1,206,607) |
Other Changes | 26,217 | 72,215 | (13,465) |
Net debt at the end of the year | 447,564 | 343,814 | 1,060,427 |
Cash and cash equivalents | |||
Net debt reconciliation | |||
Net debt at the beginning of the year | 1,907,776 | 1,399,370 | 3,055,194 |
Cash flows | (543,432) | 433,119 | (1,627,680) |
Other Changes | 15,129 | 75,287 | (28,144) |
Net debt at the end of the year | 1,379,473 | 1,907,776 | 1,399,370 |
Financial assets at fair value through profit or loss | |||
Net debt reconciliation | |||
Net debt at the beginning of the year | 690,627 | 2,071,653 | 1,487,871 |
Cash flows | 214,570 | (1,411,713) | 538,138 |
Other Changes | 20,007 | 30,687 | 45,644 |
Net debt at the end of the year | ¥ 925,204 | ¥ 690,627 | ¥ 2,071,653 |
Related party transactions - Ke
Related party transactions - Key management personnel compensations (Details) - Key management - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions between related parties | |||
Wages and salaries | ¥ 20,806 | ¥ 21,123 | ¥ 28,163 |
Welfare and other benefits | 654 | 614 | 772 |
Share-based payments | 4,909 | 8,401 | 4,187 |
Total | ¥ 26,369 | ¥ 30,138 | ¥ 33,122 |
Related party transactions - Si
Related party transactions - Significant Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Ping An Group and its subsidiaries | |||
Disclosure of transactions between related parties | |||
Revenue | ¥ 2,091,039 | ¥ 2,526,682 | ¥ 2,315,220 |
Purchase of services | 1,423,367 | 1,706,436 | 1,534,302 |
Net loss on disposal of property and equipment | (1,359) | (599) | |
Net gain from wealth management products consolidated by related parties | 12,996 | 18,890 | 26,249 |
Net( loss)/gain on derivatives | 30,592 | 262,769 | (169,545) |
Interest income on bank deposits | 17,637 | 9,234 | 12,037 |
Leasing payment | ¥ 12,131 | 20,957 | 19,849 |
Interest expenses | 2,672 | ¥ 15,914 | |
Net gain on financial assets measured at fair value through other comprehensive income | 315 | ||
Open Portal Guangxi | |||
Disclosure of transactions between related parties | |||
Investment income from loan to related party | ¥ 283 |
Related party transactions - Ye
Related party transactions - Year end balances (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of transactions between related parties | ||
Derivative financial liabilities | ¥ 9,568 | |
Ping An Group and its subsidiaries | ||
Disclosure of transactions between related parties | ||
Trade receivables. | ¥ 299,098 | 372,456 |
Contract assets | 7,538 | 9,876 |
Prepayment and other receivables | 599,671 | 771,137 |
Financial assets at fair value through profit or loss | 417,956 | 405,960 |
Cash and restricted cash and time deposits over three months | 784,840 | 787,916 |
Trade and other payables | 864,038 | 1,086,907 |
Contract liabilities | 25,550 | 27,517 |
Derivative financial assets | ¥ 38,008 | 56,363 |
Derivative financial liabilities | ¥ 9,568 |
The Group's maximum exposure _3
The Group's maximum exposure to unconsolidated structured entities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | ¥ 925,204 | ¥ 690,627 |
Asset management products | Group | ||
Disclosure of unconsolidated structured entities [line items] | ||
Size | 594,058 | |
Wealth management products | Related parties | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 532,147 | 690,627 |
The Group's maximum exposure | ¥ 532,147 | ¥ 690,627 |
Contingencies (Details)
Contingencies (Details) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Contingencies | ||
Material contingent liabilities | ¥ 0 | ¥ 0 |
Restricted net assets (Details)
Restricted net assets (Details) | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Restricted net assets | |
Minimum percentage of appropriation to the statutory general reserve fund | 10% |
Maximum percentage of appropriation to the statutory general reserve fund | 50% |
Total restricted net assets | ¥ 6,338,242,000 |
Parent company only condensed_3
Parent company only condensed financial information - Comprehensive Income (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Statements of Comprehensive Income | |||
Selling and marketing expenses | ¥ (275,351) | ¥ (411,356) | ¥ (588,380) |
General and administrative expenses | (504,970) | (824,711) | (841,685) |
Net impairment losses on financial and contract assets | (53,950) | (33,639) | (72,229) |
Other income, gains or loss-net | 71,855 | 70,818 | 13,921 |
Operating loss | (368,212) | (981,563) | (1,404,740) |
Finance (costs)/income - net | 29,580 | 14,709 | 28,823 |
Finance costs | (20,532) | (37,173) | (76,637) |
Share of losses of joint venture | (2,550) | (439) | (2,204) |
Loss before income tax | (361,714) | (990,173) | (1,442,608) |
Income tax expenses | (9,762) | 62,147 | 112,095 |
Loss for the year | (362,715) | (872,274) | (1,281,699) |
Items that may be subsequently reclassified to profit or loss | |||
Foreign currency translation differences | 26,216 | 426,145 | (152,542) |
Changes in the fair value of debt instruments measured at fair value through other comprehensive income | 500 | 5,324 | (1,812) |
Items that will not be subsequently reclassified to profit or loss | |||
- Changes in the fair value of equity investments measured at fair value through other comprehensive income | (1,796) | ||
Total comprehensive loss | (335,999) | (440,805) | (1,436,053) |
Parent company | |||
Condensed Statements of Comprehensive Income | |||
Selling and marketing expenses | (90) | (387) | (439) |
General and administrative expenses | (32,965) | (104,653) | (53,621) |
Net impairment losses on financial and contract assets | (281,288) | (465,457) | |
Other income, gains or loss-net | (457) | 2,555 | 834 |
Operating loss | (314,800) | (567,942) | (53,226) |
Finance (costs)/income - net | 196 | ||
Finance costs | (573) | (32) | |
Share of losses of joint venture | (2,896) | ||
Share of losses of subsidiaries and VIEs | (48,111) | (303,759) | (1,225,545) |
Loss before income tax | (362,715) | (872,274) | (1,281,699) |
Loss for the year | (362,715) | (872,274) | (1,281,699) |
Items that may be subsequently reclassified to profit or loss | |||
Foreign currency translation differences | 3,880 | 69,454 | (152,542) |
Changes in the fair value of debt instruments measured at fair value through other comprehensive income | 500 | 5,324 | (16) |
Items that will not be subsequently reclassified to profit or loss | |||
Foreign currency translation differences | 22,336 | 356,691 | |
- Changes in the fair value of equity investments measured at fair value through other comprehensive income | (1,796) | ||
Total comprehensive loss | ¥ (335,999) | ¥ (440,805) | ¥ (1,436,053) |
Parent company only condensed_4
Parent company only condensed financial information - Balance Sheet (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Noncurrent assets | ||||
Total noncurrent assets | ¥ 2,709,390 | ¥ 2,508,106 | ||
Current assets | ||||
Prepayments and other receivables | 905,691 | 1,078,604 | ||
Cash and cash equivalents | 1,379,473 | 1,907,776 | ¥ 1,399,370 | ¥ 3,055,194 |
Total current assets | 5,358,968 | 6,374,276 | ||
Total assets | 8,068,358 | 8,882,382 | 9,340,607 | |
Equity | ||||
Share capital | 78 | 78 | ||
Shares held for share incentive scheme | (149,544) | (149,544) | ||
Reserves | 10,989,851 | 10,953,072 | 10,512,631 | 10,639,931 |
Accumulated losses | (7,873,614) | (7,510,899) | ||
Equity attributable to equity owners of the Company | 2,966,771 | 3,292,707 | ||
Noncurrent liabilities | ||||
Trade and other payables | 28,283 | 132,833 | ||
Total noncurrent liabilities | 47,488 | 158,006 | ||
Current liabilities | ||||
Trade and other payables | 1,981,288 | 2,531,273 | ||
Total current liabilities | 5,073,078 | 5,446,321 | ||
Total liabilities | 5,120,566 | 5,604,327 | 5,505,525 | |
Total equity and liabilities | 8,068,358 | 8,882,382 | ||
Parent company | ||||
Noncurrent assets | ||||
Interest in subsidiaries | 2,181,554 | 1,764,074 | ||
Total noncurrent assets | 2,181,554 | 1,764,074 | ||
Current assets | ||||
Amount due from subsidiaries | 803,173 | 1,641,677 | ||
Prepayments and other receivables | 435 | 448 | ||
Cash and cash equivalents | 3,267 | 7,327 | ¥ 6,454 | ¥ 31,857 |
Total current assets | 806,875 | 1,649,452 | ||
Total assets | 2,988,429 | 3,413,526 | ||
Equity | ||||
Share capital | 78 | 78 | ||
Shares held for share incentive scheme | (149,544) | (149,544) | ||
Reserves | 10,989,851 | 10,953,072 | ||
Accumulated losses | (7,873,614) | (7,510,899) | ||
Equity attributable to equity owners of the Company | 2,966,771 | 3,292,707 | ||
Noncurrent liabilities | ||||
Trade and other payables | 88,280 | |||
Total noncurrent liabilities | 88,280 | |||
Current liabilities | ||||
Trade and other payables | 21,658 | 32,539 | ||
Total current liabilities | 21,658 | 32,539 | ||
Total liabilities | 21,658 | 120,819 | ||
Total equity and liabilities | ¥ 2,988,429 | ¥ 3,413,526 |
Parent company only condensed_5
Parent company only condensed financial information - Cash Flows (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash generated from /(used in) operating activities | |||
Cash used in operations | ¥ (637,746) | ¥ (720,786) | ¥ (383,704) |
Net cash used in operating activities | (648,461) | (745,984) | (404,334) |
Cash flows from investing activities | |||
Payment for interest in subsidiaries, net of cash acquired | 0 | 0 | (11,060) |
Net cash generated from investing activities | 318,634 | 1,873,169 | 388,435 |
Cash flows from financing activities | |||
Proceeds from exercise of shares under share incentive scheme | 1,161 | 9,257 | |
Net cash used in financing activities | (213,605) | (694,066) | (1,611,781) |
Net (decrease)/increase in cash and cash equivalents | (543,432) | 433,119 | (1,627,680) |
Cash and cash equivalents at the beginning of the year | 1,907,776 | 1,399,370 | 3,055,194 |
Effects of exchange rate changes on cash and cash equivalents | 15,129 | 75,287 | (28,144) |
Cash and cash equivalents at the end of year | 1,379,473 | 1,907,776 | 1,399,370 |
Parent company | |||
Cash generated from /(used in) operating activities | |||
Cash used in operations | (44,284) | (139,011) | (51,132) |
Net cash used in operating activities | (44,284) | (139,011) | (51,132) |
Cash flows from investing activities | |||
Payment for interest in subsidiaries, net of cash acquired | (1,117,823) | (3,005,546) | (1,333,804) |
Proceeds from loan to subsidiaries | 1,157,947 | 3,218,655 | 1,350,654 |
Net cash generated from investing activities | 40,124 | 213,109 | 16,850 |
Cash flows from financing activities | |||
Proceeds from exercise of shares under share incentive scheme | 1,161 | 9,257 | |
Payments for shares repurchase | (74,992) | ||
Net cash used in financing activities | (73,831) | 9,257 | |
Net (decrease)/increase in cash and cash equivalents | (4,160) | 267 | (25,025) |
Cash and cash equivalents at the beginning of the year | 7,327 | 6,454 | 31,857 |
Effects of exchange rate changes on cash and cash equivalents | 100 | 606 | (378) |
Cash and cash equivalents at the end of year | ¥ 3,267 | ¥ 7,327 | ¥ 6,454 |
Parent company only condensed_6
Parent company only condensed financial information - Interest in subsidiaries and amount due from subsidiaries (Details) - Parent company - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Interest in subsidiaries | ||
Equity investment in subsidiaries | ¥ 2,181,554 | ¥ 1,764,074 |
Amount due from subsidiaries | ||
Loan receivables | ¥ 803,173 | ¥ 1,641,677 |
Subsequent events - Additional
Subsequent events - Additional information (Details) - Equity interest sale ¥ in Millions | Nov. 13, 2023 HKD ($) | Nov. 13, 2023 CNY (¥) |
Disclosure of non-adjusting events after reporting period | ||
Relevant disposal gain | ¥ | ¥ 262 | |
Ping An OneConnect Bank (Hong Kong) Limited | ||
Disclosure of non-adjusting events after reporting period | ||
Cash flows from losing control of subsidiaries or other businesses, classified as investing activities | $ | $ 933,000,000 | |
Ping An OneConnect Bank (Hong Kong) Limited | Jin Yi Tong Limited | ||
Disclosure of non-adjusting events after reporting period | ||
Percentage of ownership interest | 100% | 100% |