According to the announcement by Oneconnect Financial Technology (06638), since 2020, the company has been providing cloud computing services to financial institutions through its JUMA Financial Cloud Platform. For the years ended December 31, 2022 and 2023, cloud service revenue was RMB 1.316 billion and RMB 1.246 billion, respectively, accounting for approximately 29.5% and 34.0% of the total revenue of the group for the relevant years. RMB 1.31 billion and RMB 1.24 billion, or approximately 99.6% and 99.5%, respectively, are from subsidiaries and joint ventures of Ping An Insurance (Group) Company of China, Ltd. For the three months ended March 31, 2024, cloud service revenue was RMB 0.318 billion, accounting for approximately 44.0% of the group's total revenue from sustained operations for the same period, of which RMB 0.316 billion, or approximately 99.4%, is from subsidiaries and joint ventures of Ping An Insurance (Group) Company of China, Ltd.

After consideration, because the business model of cloud computing services is usage-intensive and the decline in scale economy and unsustainable operating cost levels due to the termination of related customer purchases, which is an obstacle to the company's continuous cost reduction and efficiency improvement, and the Group's continuous allocation of strategic resources to build high-value, high-threshold products and deep cultivated overseas markets, it is expected to promote income growth from high-quality customer income, especially third-party income. The Board of Directors decided on July 11, 2024, in order to comply with the overall interests of the company and its shareholders, that the company will gradually terminate the operation of cloud computing services from July 2024 and discuss transition arrangements (if any) with clients.

The board of directors expects that due to the termination of operations, revenues from cloud computing services business for the second half of 2024 and the full year ending December 31, 2024, will decline significantly.

The company will continue to provide technological solutions to financial institution clients, including digital banking solutions, digital insurance solutions, such as the well-received "omni-agent solution" by third-party clients, and other digital infrastructure provided to financial institutions through the JUMA platform. The company believes that the above progress will not affect other business operations, including its continued strategic business relationships with Ping An Insurance (Group) Company of China, Ltd. With a deep understanding of the business needs of Ping An Group over the years, as well as rich professional knowledge in the financial services industry and regulatory environment, the Group has been developing and providing comprehensive and customized technological solutions to meet the needs of Ping An Group and improve its operational efficiency. The strategic business relationship between the company and Ping An Group remains unchanged.

In addition, the company is continuing to expand its overseas business and is experiencing strong growth. Third-party overseas customer income from the group's sustained operations in the first quarter of 2024 increased by 14.8% year-on-year. The company will continue to enhance its product competitiveness and implement the second-stage strategic promotion of "deep cultivation of customers" to achieve income growth, especially priority income from third-party clients.