Financial OneConnect (06638/OCFT) has released an announcement regarding the continuation of ongoing related party transactions, significant acquisitions, and special shareholder meeting notices. The announcement mentioned that the company entered into multiple agreements with several subsidiaries of Ping An on November 4, 2024, including the 2024 Product and Service Provision Agreement, Service and Product Purchase Agreement, Financial Services Procurement Agreement, and Property Lease Agreement.
In the 2024 Product and Service Provision Agreement, the company expects annual caps of 2.223 billion yuan, 2.304 billion yuan, and 2.343 billion yuan from 2025 to 2027, mainly for providing banking and non banking solutions to Ping An's subsidiaries; The annual caps for deposit services in the financial services procurement agreement are expected to be 1.891 billion yuan, 1.836 billion yuan, and 2.029 billion yuan, respectively. The annual caps for deposit interest income are 79.15 million yuan, 76.4 million yuan, and 86.03 million yuan, respectively; The annual limit of the property lease agreement is 33 million yuan, 11 million yuan, and 62 million yuan.
The announcement points out that the continued cooperation between the company and Ping An can leverage its advantages in the Chinese financial services industry to promote business synergy and development. At the same time, the announcement mentioned the financial data for the six months ending June 30, 2024, which showed that the company's total revenue was 1.46 billion yuan, a decrease of 23.1% compared to the same period last year, mainly due to the focus on high-value products and market demand fluctuations.