OneConnect Announces that Its Management Intends to Increase Their Shareholdings Demonstrating Confidence in the Prospects for Its Business

Rhea-AI Summary

OneConnect Financial Technology Co., Ltd. (NYSE: OCFT) announced its management's intent to purchase up to $10 million worth of the company's American Depositary Shares (ADSs) over the next three months. This move underscores management's confidence in the company's long-term growth and aims to align their interests more closely with shareholders. The purchases will adhere to legal and regulatory guidelines, with a minimum six-month lock-up period for the acquired shares.

Positive

• Management's intention to buy $10 million in ADSs indicates strong confidence in the company's future.
• Share purchases will align management's interests with shareholders, potentially enhancing trust.

Negative

• None.

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 it was informed by its Chairman and Chief Executive Officer and certain other members of its management team of their intention to use their personal funds to purchase up to an aggregate of US$10 million worth of the Company’s ADSs during a three-month period following today, pursuant and subject to applicable laws and the Company’s securities trading policy. The proposed management share purchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The management team has agreed to be subject to lock-up restrictions for a period of at least six months with respect to the proposed purchased shares. The proposed share purchase demonstrates the management’s confidence in the fundamental and long-term growth of the Company. After the purchase, the interests of the management will be even more closely aligned with those of the Company’s shareholders.

About OneConnect

OneConnect is a leading technology-as-a-service platform for financial institutions in China. The Company’s platform provides cloud-native technology solutions that integrate extensive financial services industry expertise with market-leading technology. The Company’s solutions provide technology applications and technology-enabled business services to financial institutions. Together they enable the Company’s customers’ digital transformations, which help them increase revenue, manage risks, improve efficiency, enhance service quality and reduce costs.

The Company's technology-as-a-service platform strategically covers multiple verticals in the financial services industry, including banking, insurance and asset management, across the full scope of their businesses – from sales and marketing and risk management to customer services, as well as technology infrastructure such as data management, program development and cloud services.

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/20210812005433/en/

FAQ

What is the significance of OneConnect's management purchasing $10 million in ADSs?

The management's purchase signals strong confidence in the company's long-term growth and aligns their interests with shareholders.

When will OneConnect's management begin purchasing shares?

The management plans to purchase shares over a three-month period starting from the announcement.

Are there any restrictions on OneConnect's management regarding their share purchases?

Yes, the management has agreed to a lock-up period of at least six months for the purchased shares.

How does the share purchase affect OneConnect's stock performance?

The share purchase may boost investor confidence and potentially positively influence the stock price.

What is OneConnect's business focus?

OneConnect is a technology-as-a-service platform that provides cloud-native solutions for financial institutions in China.