On November 14th, OneConnect Financial Technology Co., Ltd. (hereinafter referred to as "Financial OneConnect"; NYSE: OCFT; 06638. HK) announced that it would sell 100% of its wholly-owned subsidiary, Ping An OneConnect Bank (Hong Kong) Limited (hereinafter referred to as "Ping An OneConnect Bank" or "PAOB"), to Lujin Holdings Limited (hereinafter referred to as "Lujin Holdings"; NYSE: LU; 06623. HK) for HKD 933 million.
On the same day as the announcement of the acquisition, Financial One Account and Lujin also simultaneously disclosed their unaudited financial performance reports for the third quarter and nine months. In the first three quarters, Lujin Holdings achieved a revenue of 27.399 billion yuan, a year-on-year decrease of 40.17%; Realized a net profit of 1.867 billion yuan, a year-on-year decrease of 80.51%.
In the first three quarters of 2023, Financial One Account achieved a revenue of 2.743 billion yuan, a year-on-year decrease of 14.9%; The net loss attributable to the parent company was 281 million yuan, a year-on-year decrease of 414 million yuan, a year-on-year decrease of 60%. The net profit margin attributable to the parent company increased from -21.6% to -10.3%, an optimization of 11.3 percentage points compared to the same period in 2022.
Both sides have expressed their opinions
Shen Chongfeng, Chairman and CEO of Financial One Account Express, stated that the sale of PAOB by Financial One Account Express is in line with the company's overall strategic layout and shareholder interests. The company will continue to focus on its technology positioning and the improvement of technology driven product services in the next stage, and is committed to; Quot; Three rises and two falls& Quot; Digital solutions and steady promotion of deep cooperation with global financial institutions.
Shen Chongfeng believes that "Financial One Account intends to use the obtained funds as general working capital, including but not limited to improving the company's main business operations, optimizing the allocation of resources for technology products and services
The senior executives controlled by the takeover party, Lujin, expressed their confidence in the acquisition.  
According to the pricing basis disclosed by Lujin Holdings this time, Ping An One Account Bank's unaudited net assets as of June 30, 2023 are approximately HKD 761 million; Ping An One Account Bank has audited net assets of approximately HKD 848 million as of December 31, 2022.
The board of directors of Land Control believes that the cost is fair and reasonable, and is in the overall interests of the company and its shareholders (including holders of American Depositary Shares).
  The transformation of business model has gained recognition from a large number of cooperative banks, and is expected to increase revenue and improve the profitability of Lujin Holdings in the medium term.
Banking business accounted for less than 4% of the total revenue of OneConnect last year
For Financial One Account, Ping An One Account Bank has never been the main revenue force. Data shows that in the first three quarters of this year, the virtual banking sector where Ping An One Account Bank is located only accounted for 3.76% of revenue, a slight increase from 2.30% in the same period last year.
Compared to the contribution of this business to the company's revenue, the losses caused by the virtual banking division are more prominent. According to the 2022 annual performance report of Financial One Account, the net loss attributable to shareholders of Financial One Account was 872 million yuan, compared to 1.282 billion yuan as of the end of 2021, a decrease of 32% year-on-year. Among them, the virtual banking division suffered an operating loss of 135.6 million yuan in 2022.