On November 14th, OneConnect Financial Technology Co., Ltd. (hereinafter referred to as "Financial OneConnect") 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") for a consideration of HKD 933 million.
According to the announcement, Ping An One Account Bank is the first virtual bank in Hong Kong to focus on providing flexible and efficient banking services for small and medium-sized enterprises. Its total revenue in the first half of 2023 was 66 million yuan, a year-on-year increase of 45.2%.
At present, the capital adequacy ratio of Ping An One Account Bank is 100%, which is higher than regulatory requirements. All of its loans are for small and medium-sized enterprises in Hong Kong, and a significant portion of the outstanding balance is supported by the Hong Kong government's Small and Medium sized Enterprise Financing Guarantee Scheme.
The relevant person in charge of Lujin Holdings told the International Finance News: "The target customers of the virtual bank are in line with Lukong's business form of providing financing services for small and micro business owners. This acquisition will supplement Lukong's business layout and help diversify its business
Shen Chongfeng, Chairman and CEO of Financial One Account, stated that Ping An One Account Bank has been steadily developing since its opening, and the development strategy of "a virtual bank exclusive to small and medium-sized enterprises" has laid a solid business foundation. This time, Financial One Account chose to sell PAOB, which is in line with the company's overall strategic layout and shareholder interests. The company will continue to focus on improving its technology positioning and technology driven product services in the next stage, committed to steadily promoting deep cooperation with global financial institutions through digital solutions of "two improvements and two reductions". In the future, 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, etc.