OneConnect Announces Expiration of Exclusivity Period Under Its Memorandum of Understanding to Purchase Majority Stake in Shenzhen VZOOM CREDIT TECHNOLOGY

Rhea-AI Summary

OneConnect Financial Technology Co., Ltd. (NYSE: OCFT) announced it will not proceed with acquiring a majority stake in Shenzhen Vzoom Credit Technology Co., Ltd. due to the expiration of their Memorandum of Understanding. The decision follows a thorough analysis of circumstances surrounding the potential acquisition, initially disclosed on August 25, 2021. OneConnect focuses on providing technology-as-a-service solutions to financial institutions in China.

Positive

• Established long-term cooperation with financial institutions.
• Expanding services to support digital transformation in the financial eco-system.

Negative

• Decision not to acquire Vzoom may indicate strategic challenges.
• Potential loss of growth opportunities in the competitive market.

SHENZHEN, China--(BUSINESS WIRE)-- OneConnect Financial Technology Co., Ltd. (“OneConnect” or the “Company”) (NYSE: OCFT), a leading technology-as-a-service platform for financial institutions in China, today announced that the exclusivity period under the Memorandum of Understanding to acquire a majority equity stake in SHENZHEN VZOOM CREDIT TECHNOLOGY Co., Ltd., which was announced on August 25, 2021, expires today. After thorough analysis of overall circumstances and due consideration, the Company has decided not to proceed with the acquisition.

About OneConnect

OneConnect Financial Technology Co. Ltd. is a technology-as-a-service platform for financial institutions. The Company integrates extensive financial services industry expertise with market-leading technology to provide technology applications and technology-enabled business services to financial institutions. The integrated solutions and platform the Company provides include digital retail banking solution, digital commercial banking solution, digital insurance solution and Gamma Platform, which is a technology infrastructural platform for financial institutions. The Company’s solutions enable its customers’ digital transformations, which help them improve efficiency, enhance service quality, and reduce costs and risks.

The Company has established long-term cooperation relationships with financial institutions to address their needs of digital transformation. The Company has also expanded its services to other participants in the value chain to support the digital transformation of financial services eco-system. In addition, the Company has successfully exported its technology solutions to overseas financial institution

For more information, please visit ir.ocft.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates”, “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s limited operating history in the technology-as-a-service for financial institutions industry; its ability to achieve or sustain profitability; the tightening of laws, regulations or standards in the financial services industry; the Company’s ability to comply with the evolving regulatory requirements in the PRC and other jurisdictions where it operates; its ability to comply with existing or future laws and regulations related to data protection or data security; its ability to maintain and enlarge the customer base or strengthen customer engagement; its ability to maintain its relationship with Ping An Group, which is its strategic partner, most important customer and largest supplier; its ability to compete effectively to serve China’s financial institutions; the effectiveness of its technologies, its ability to maintain and improve technology infrastructure and security measures; its ability to protect its intellectual property and proprietary rights; risks of defaults by borrowers under the loans for which the Company provided credit enhancement under its legacy credit management business; its ability to maintain or expand relationship with its business partners and the failure of its partners to perform in accordance with expectations; its ability to protect or promote its brand and reputation; its ability to timely implement and deploy its solutions; its ability to obtain additional capital when desired; litigation and negative publicity surrounding China -based companies listed in the U.S.; disruptions in the financial markets and business and economic conditions; the Company’s ability to pursue and achieve optimal results from acquisition or expansion opportunities; the duration of the COVID-19 outbreak, including the emergence of COVID variants, and its potential impact on the Company’s business and financial performance; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211125005401/en/

Investor Relations:

OCFT IR Team

OCFT_IR@ocft.com

Media Relations:

Amy Ding

dingjingmin787@ocft.com

Source: OneConnect Financial Technology Co., Ltd.

FAQ

Why did OneConnect (OCFT) decide not to acquire Vzoom Credit Technology?

OneConnect decided not to proceed with the acquisition due to the expiration of the Memorandum of Understanding and a thorough analysis of the situation.

When was the acquisition of Vzoom Credit Technology announced?

The acquisition was announced on August 25, 2021.

What is OneConnect's main business focus?

OneConnect focuses on providing technology-as-a-service solutions for financial institutions.

How does OneConnect support financial institutions?

OneConnect supports financial institutions by helping them with digital transformation to improve efficiency, service quality, and reduce costs.