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Operator
star followed by one on your telephone keypad. If any reason you would like to remove that question, please press star and two. And for operator assistance at any point, please press star zero. Thank you. Please note this event is being recorded. Now I would like to hand the conference over to your speaker host today, Mr. Rick Chan, the company's head of investor relations. Please go ahead, Mr. Chan.
Chan
Thank you, operator. Hello, everyone, and welcome to our 2024 second quarter earnings conference call. Our financial and operating results were released earlier today and currently available on our IRF website. Today, you will hear from our chairman and CEO, Mr. Shen Chongfeng, who will give opening remarks and business highlights afterwards. Our CFO, Mr. Luo Yongtao, will offer a closer look into our financials. And then in question and answer session, our management team will be available to you. In today's conference, our management team will make a statement in Mandarin or in English. For those in Mandarin, a consecutive translation will be provided. In case of any discrepancy between the Mandarin version and the English version, a statement in the original language shall prevail. Let me quickly cover this same Harvard statement before we start. We'll be making forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that we may present both IFRS and non-IFRS financial measures, but that I am not pleased to turn our call to our chairman and CEO. Mr. Shen, you can go first.
Shen
Hello, everyone. I'm Shen Chongfeng. Thank you for taking the time to join OneConnect's second quarter and first half of 2024 earnings release. On behalf of OneConnect, I would like to extend a warm welcome to all investors, analysts, and the media friends who are with us today. I'm very pleased to take this opportunity to share with you our achievements in this quarter and the first six months of 2024.
Chan
The Central Economic Work Conference has proposed nine key tasks. They will focus on technology innovation to lead the construction of a modernized industrial system. It also points out the direction for the development of the financial industry. At the same time, the five major articles on the development of technology finance, green finance, general finance, pension finance, and digital finance have been published in the Central Economic Work Conference. In May this year, the National Financial Supervisory Board once again issued guidance opinions on the financial five major articles on the banking insurance industry. The Central Economic Work Conference has put forward nine key tasks for this year's economic development.
Shen
The construction of a modernized industrial system led by technical innovation, which is a top priority among the nine tasks, also points out the direction for the development of the financial industry. At the same time, after the five major articles, namely Vigorously Developing Technology Innovation in Finance, Green Finance, Financial Inclusion, Pension Finance, and Digital Finance, were unveiled at the Central Financial World Conference, the National Financial Regulatory Administration followed up with the guidance on banking and insurance industries to implement the five major financial initiatives, a document that maps out systematic implementation of the five major articles. The guidance points out that digital finance ought to focus on efficiency and security, In the next five years, the banking and insurance industries are expected to make strides in digital transformation. With the digital operation and management system basically completed, digital services widely popularized and the digital regulatory framework and process in place.
Chan
Under the trend of digitalization, financial institutions and major state-owned enterprises are facing many challenges. The financial trend continues to change with policy trends and market changes. We will continue to use the unique advantages of technology and business, and continue to improve product capabilities around digital banks, digital insurance, and the three major business blocks of the plus platform. We will assist financial institutions and enterprises to improve their digital operations through digital transformation, strengthen business management, improve service quality, and reduce service costs. We will continue to improve the development of the new productivity of the financial industry.
Shen
With digitalization becoming ever more relevant, financial institutions and large SOEs are facing many challenges. OneConnect closely monitors policy and market developments and continues to leverage the unique advantages of technology plus business to improve its product capabilities in our three major business segments, namely digital banking, digital insurance, and gamma platform. so as to help financial institutions and enterprises to improve their digital operation and service capabilities through digital transformation, and strengthen business management, improve service quality, reduce service costs, and empower the development of new quality productive forces in the financial industry.
Chan
In the first half of 2024, our profit and loss situation has been further improved, and overseas business continues to maintain a strong development trend. In the first half of the year, the number of losses from continuing to operate the business increased from RMB 1.14 billion in the same period last year to RMB 0.7 billion, which is 38% lower than the large-scale reduction. The interest rate and the interest rate after adjustment continue to remain at a healthy level, reaching 37.1% and 39.4% respectively. In addition, third-party foreign customer revenue has increased by 14.8% in the same period. In the first half of 2024, profitability has further improved and overseas business continues to maintain strong growth momentum.
Shen
Net loss from continuing operations attributable to shareholders improved to 70 million yuan in the first half from 114 million yuan in the same period last year, a significant year-on-year decrease of about 38%. Both gross profit margin and adjusted gross profit margin remain healthy at 37.1% and 39.4% respectively. In addition, third-party revenue from overseas customers increased by 14.8% year-on-year. Our solid performance is attributable to OneConnect's efforts in product portfolio adjustment, deepening of customer cooperation, continuous expansion of domestic and overseas markets, disciplined cost control, and resource allocation efficiency improvement. which has also laid a solid foundation for us to achieve profitability in the medium term.
Chan
Next, please move on to page four of our slide. and achieved good results. At this stage, we continue to accelerate the promotion of security technology output and self-improvement, and gather resources to create high-value and high-level products. At the same time, Yizhangtong also pays attention to improving the production capacity of sales teams, expanding the business base, and working hard to promote three-way income growth, and continue to improve the income structure. In addition, the company continues to actively expand the foreign market, Based on the demand and bias of the local market, we continue to improve the product and create a new collaboration model to meet the needs of the international market.
Shen
Committed to our business philosophy of value, win-win cooperation, and quality development, we achieved significant progress in three core priorities, namely product upgrade, customer expansion, as well as overseas expansion in the first half of 2024. At this stage, we are accelerating export of ping and group technology and upgrade of self-developed products and aggregating resources on high value products. At the same time, the company has boosted the productivity of its sales team, expanded pipeline and increased third-party revenue growth so as to further optimize revenue structure. On top of that, OneConnect has also ramped up efforts in overseas market. meeting international market demands by continuously improving our products based on the demands and preferences of local markets. Next page.
Chan
We now remain at the key year in our Stage 2 strategy of broadening customer engagement. We will continue to focus on our financial institution customers,
Shen
integrate and optimize our products and services to continuously improve our product capabilities around the three major business segments, digital banking, digital insurance, and gamma platform, so as to empower financial institutions to improve quality and efficiency and successfully achieve digital transformation. We will also strengthen cooperation with enterprises and industry partners around the world. In addition to the mainland market, we will also expand presence in regions including Hong Kong, China, Southeast Asia, South Africa, and the Middle East. 第六页 Next, moving on to page six.
Chan
在数字化银行零售板块, 金融一账通以客户为中心, 以数据为驱动, 以AI为辅助, 全面升级了我们的产品, 助力零售智慧经营。 公司基于数据和AI, 通过客户分层分群, financial health diagnosis tools to help retail banks and customers to deepen customer management to achieve the precise selection and asset allocation of target customers, and to help improve product quality. At the same time, Yizhangtong has also promoted the channel system of bank customer management. We have adopted the system strategy of APP, AI, T, and W, that is, the application of AI and telephone lines and online lines, and designed and developed the AI language library. In retail digital banking, OneConnect has comprehensively upgraded its products with customer-centered, data-driven and AI-assisted products to drive intelligent operations in retail banking.
Shen
Based on data and AI, the company helps retail banking customers refine customer operations, achieve accurate target customer segmentation, and asset allocation suggestions through tools such as customer stratification and wealth health diagnosis to help improve their product quality. At the same time, OneConnect has also synergized channel operations for banks' customer group operation using app plus AI plus T plus W, which means the synergized strategy of apps, AI, telephone, and website to design and develop AI corpuses, AI corps, model operation, and other tools. These products are well received by our banking customers and have been successfully adopted by many banks, including a top five city commercial bank and a foreign bank operating in China. Next, on page seven.
Chan
We can see that the demand for digitalization in the overseas modern market is very strong, especially in the Southeast Asian market. The company has developed a smart modern system out of the sea solution program for the demand of the overseas market. We have combined data and wind control product capabilities to build a smart modern system that is flexible and flexible. From banking retail business, small and medium-sized enterprises, loan areas, and modern wind control needs, In credit lending digital banking, OneConnect is vigorously promoting the export of smart credit system, which has already been proven by the domestic market.
Shen
We see great potential in this solution. We noticed that as development of digital economy accelerates, demand from overseas customers for credit lending digitalization is increasingly robust, and the willingness to pay is relatively higher, especially for customers in the Southeast Asian market. So to capitalize the strong overseas market demand, the company has developed an international version of smart credit system. Combined with data and risk control product capabilities, we have built an end-to-end easily configurable and iterative smart credit system, which engages overseas banking customers through retail business and SME credit lending risk management. The system has been widely used in the Southeast Asian market improving long-processing efficiency by 40%, the AI automated risk control capabilities by 50%, and iteration efficiency with configurable modules by 30%.
Chan
The speedy development of banking retail systems and smart credit systems is inseparable from the support and application of technology. Yizhangtong has already established a unified technology platform. Through the optimization of the technology and energy system, we continue to improve our competitiveness and market balance.
Shen
The development of digital banking retail systems and smart credit systems comes from the support and application of technology. OneConnect has therefore established a unified technology platform to continuously improve our competitiveness and market share and further optimize our systems. In the future, the company will continue to ramp up R&D and application efforts to empower more intelligent and convenient financial services for our customers. Next, on page eight.
Chan
which includes a system for a state-owned property company to provide a high-tech system to solve the pain points of retail, castle, service, etc., to help customers strengthen the retail control, improve castle quality, and improve customer experience. By establishing a standard of multi-product cooperation, not only does it strengthen the customer's yearning, but it also achieves continuous customer expansion. Currently, we have successfully implemented dozens of
Shen
In digital insurance, the company has been working on several end-to-end SaaS deployment cooperation with benchmark cases. This includes providing a state-owned P&C insurer with an end-to-end P&C insurance system to solve the pain points of claim settlement, underwriting, and servicing. helping our customers to reinforce risk controls for claim settlements, enhance underwriting quality, and improve customer experience. By setting a benchmark for multi-product cooperation, we were able to enhance customer stickiness and also achieve continuous customer expansion. So far, OneConnect has successfully landed more than 10 cases and significantly benefited our customers. We believe that these benchmark cases will improve market reputation for OneConnect and open up more potential. Next page.
Chan
For example, the application of AI face-to-face robots has achieved an automated audit and issued a loan amount of more than 100 billion yuan, and achieved a large-scale loan of the cost of artificial learning, with a total loan cost of more than 2 million yuan. At the same time, the company launched the overseas intelligent identity certification, which has adopted more than a dozen technologies, and the blue line rate is the first priority in the industry, providing more than 100,000 times a year for Hong Kong's banks to open and serve, which has successfully landed more than 10 overseas governments and financial institutions.
Shen
In Gamma Platform, OneConnect has successfully leveraged AI in all business links, aiming to empower scenarios such as smart risk management and operation efficiency enhancement. Through a variety of AI technologies, including computer vision, ASR, TTS, and graph computing, our solution helps financial institutions manage risks and improve efficiency in scenarios including remote account registration, insurance due registration, and loan application review. For instance, the application of AI interview robot has achieved automatic loan approval of more than 1 billion yuan and has substantially reduced the cost of human agents, saving a total of over 2 million yuan. At the same time, our EKYC solution overseas has incorporated 10 plus anti-counterfeiting technologies with top interception rate in the industry, providing more than 100,000 times of account opening services for banks in Hong Kong every year. The product has been successfully implemented in over 10 overseas governments and financial institutions. Next page.
Chan
In the first half of the year, the foreign business developed rapidly, increasing the number of customers. The income of foreign customers accounted for 21.2% of the third-party income ratio, and the company's strategy to get out of the sea was effective and significant. The product was also greatly welcomed by foreign customers. In the first half of the year, foreign customers achieved the ideal of cooperation. Overseas business saw strong momentum and registered remarkable growth in the first half of 2024. Revenue contribution from overseas customers
Shen
has increased to 21.2% of total share party revenue. OneConnect's overseas strategy has successfully delivered as we see our products are well received by overseas customers and over 100 million yuan worth of cooperation with overseas customers is in the pipeline in the first half of 2024. The company continued to leverage product and technology advantages to deepen customer engagement and expand the corporation. For example, the company further deepened its cooperation with the leading bank in Vietnam and successfully signed an over 10 million RMB product subscription service contract in the first six months of 2024, landing another benchmark case of overseas cooperation. and fully demonstrating customer recognition and trust in our products.
Chan
Okay, thank you.
Shen
Next page.
Chan
In the first half of the year, Yizhangtong has won nine awards from the three-party institutions and the whole media, with a total of 314 awards, which fully reflects the high recognition of our products and technologies by the industry and society. The company has won a lot of awards, including the BIMAwei China Financial Technology Enterprise Double 50,
Shen
Chai Lianshe, China Enterprise Cuhai Service Organization 50 Wall Connect won nine awards from third party institutions and renowned media outlets in H1, bringing the total number of honors to 314, fully reflecting industry recognition for our products. Shufang Sun.: : Technique as well as technical strength and influence this honors include the KPMG China's leading fintech 50 and emerging 50 Shufang Sun.: : Top 50 overseas service agencies for Chinese enterprises by highly impressed and you're reading financial services platform by the economic observer. an excellent solution in risk control and compliance by the financial innovation achievements in the Greater Bay Area.
Chan
With the development of 2024, we have witnessed the constant invasion of technological revolution and industrial change. AI as the core productivity of the new generation is accelerating the development of high-quality industries, especially the financial industry. We believe that the financial sector will become an important battlefield for AI strategic implementation, which is the key to the development of new productivity. Yi Zhangtong will continue to innovate in technology, focus on product growth and improve high-quality services, while continuously optimizing smart voice machines, all-round agents, and smart信貸系统等优质产品的同时,还将合理利用充足的现金储备投入到前沿的科技产品的研发中,满足金融机构和企业在业务发展上的核心需求,支持他们提升效率,优化服务,降低成本和风险,助力金融行业的升级和转型。最后,感谢大家的关注和支持。
Shen
As we go further into 2024, technology and the industry revolution continues to evolve. New quality productive forces with artificial intelligence as the core is accelerating to lead the high quality development of industries. We firmly believe that the financial industry has the best use cases for artificial intelligence plus and will be a strategic focus for new quality productive forces. OneConnect will continue to empower the upgrade and transformation of the financial industry with technological innovation. In addition to optimizing high-quality offerings such as AI voice assistant, omni-channel agent solution, and smart credit lending system, We will also leverage our sufficient cash reserves to invest in R&D of cutting-edge technology products to satisfy the core demands of financial institutions for various business productivity improvements by supporting them to improve efficiency, optimize services, reduce costs and risks, and ultimately empower the upgrade and transformation of the financial industry. And lastly, thank you for your attention and support.
Chan
Next, I'll hand it over to Mr. Luo to give you a detailed introduction of OneConnect Financials in Q2 and the first half of 2024. Okay, thank you. Good evening, everyone. As previously reported,
Luo
we completed the disposal of our virtual banking business to LUFAX for consideration of HK$933 million in cash on April 2, 2024. As a result of the disposal, the historical financial results of our virtual banking business segment have been reflected as discontinued operations for the first half of 2024 and for the comparative period in 2023. On the other hand, the historical financial results of the remaining business have been reflected as continuing operations. The financial information we will soon cover is presented on a continuing operations basis unless otherwise Since the start of this year, our focus on improving resources and capital allocation efficiency has generated solid results. We delivered revenue from continuing operations of 1.416 billion RMB in the first half of 2024, a decrease of 22.8% compared to the same period last year. Revenue generated from third-party customers decreased by 15.9% to 418 million in the first half. But it's worth mentioning that revenue contributed by overseas customers during the first half year increased by 14.8% year-over-year, a testament to the effectiveness of our overseas market expansion strategy. Our top-line decrease reflects our decision to adopt a quality growth strategy and reduce low-margin customized projects. We are encouraged to see that the growth margin for the first half remained relatively stable at 37.1% because of this strategy, and the non-APA's growth margin was 39.4%. In the second quarter, we completed the sale of our virtual banking business to refocus resources on our core businesses, resulting in a one-time gain recognized from the disposal in the amount of $216 million. This contributed to our net profits from continuing and discontinued operations attributable to shareholders of $106 million. $39 million, compared to a net loss of $190 million for the same period of the prior year. And the corresponding net margin improved by 20.2 percentage points year over year to 9.8%. Now let's turn to our revenue mix. Our third party revenue contributed 34.2% of total revenue in Q2 2024, an increase from 33.6% in Q1 2024 and 30.4% in Q2 last year. The uncertain macro environment and the strategic adjustment of our revenue structure did have an impact on our revenue, which was mainly reflected in a decrease in revenue from business origination and operation support services in the second quarter. Third-party revenue growth remains a key focus of our second-stage strategy. Once macro pressures subside and as we continue to advance our leadership initiatives, we believe revenue from third-party will improve. We're also glad to see that our overseas business sustained its strong momentum in the second quarter, making up for the shortfalls of the temporary reduced demands for certain products and services domestically. In the second quarter, revenue from LUFAX decreased by 25.5% to $54 million and contributed 7.9% of our total revenue. The revenue declined from LUFAX was mainly due to LUFAX business operation optimizations, resulting in lower demand for business origination, risk management, and implementation services. Revenue from Pian Group decreased by 30.9% to $401 million. and contributed 57.9% of our total revenue. As always, OneConnect regards PN Group as our most important flagship customer. Our services to PN Group also have a proven record of success. For example, in the area of AI technology services, PN Group has enabled AI agents through our AI technology to optimize and transform business processes to improve operational efficiency and the customer experience. Our products and services provided at the PN group are robust and comprehensive. Moving on to revenue mix by business type. Implementation revenue decreased by 27.7% year over year to 169 million. mainly due to a decline in demand for implementation of financial services system domestically. Revenue from business origination services decreased by 69% year-over-year to 10 million, primarily due to a decline in transaction volume from loan origination system under digital credit management solutions. Revenue from risk management services decreased by 15.9% year-over-year to 61 million, mainly due to a decline in transaction volumes from banking-related risk-analytic solutions. Revenue from operations support services decreased by 47.3% year-over-year to 131 million, which was primarily due to a shift in business model for a number of auto ecosystem service providers where we transition from acting as a contractor to a platform provider. Revenue from cloud services platform was $289 million, a decrease of 10.3% year-over-year in the second quarter of last year. mainly due to decreased transaction volumes of cloud services. Revenue from post-implementation support services and others increased by 8.2% to 32 million. As you can see, our businesses are diverse, and we are developing additional products and services around the core technology for business solutions in the financial service industry. We remain committed to diversifying our product mix. Let's turn to revenue mix by product segment. Gamma platform segment revenue accounting for 67.2% of our total revenue decreased by 9.4% year-over-year in second quarter 2024. Primarily due to reduced demand of our cloud services. Digital banking segment revenue, which accounted for 14.5% of total revenue, reduced by 57.4% year-over-year, mainly due to a decline in transaction volume from business origination and risk management services. Reflecting our continuing effort to phase out lower-value products, Digital insurance segment revenue, which accounted for 18.4% of the total revenue, decreased by 33.3% year-over-year, primarily due to the change of business model in auto ecosystem, as I just mentioned. Let's now take a look at customer numbers. Premium class customers decreased to 93 compared to 121 for the same period last year. Despite the decrease in the short term, we believe the further advancements of our initiatives will help attract more Premium Plus customers to use our products and services in the long run. Now let's take a look at the gross margin for the quarter. Our gross profits reached 253 million in June 2, 2024. with the gross margin decreasing slightly year over year by 0.9 percentage points to 36.6%. None of us say this, the gross margin was 38.8%. We do stick to quality growth strategy and we continue our efforts to achieve our profitability target for our continuing operations. Moving on to our expenses and net loss, you can see that we are on track to reach our mid-term target of profitability. First of all, our research and development expenses came down to 186 million from 252 million in the prior year. In the second quarter, we continued implementing our Stage 2 strategy that focuses on product integration. As we upgraded and integrated our products, we further improved our product delivery efficiency. Looking ahead, we will keep investing in research and development at a more measured and reasonable pace to enhance our product competitiveness in the market. Our sales and marketing expenses for Q2 decreased to 42 million compared with 57 million in the prior year. The decrease in sales and marketing expenses mainly benefited from our enhanced sales capability and marketing efficiency. Our general and administrative expenses decreased to 66 million from 93 million in the prior year. As a percentage of revenue, it decreased to 9.5% from 9.9%. As a result, our net loss from continuing operations attributable to shareholders narrowed significantly by 59% year-over-year to 17 million for this quarter. And as a profit margin improved by 2 percentage points. including the discontinued operations. We achieved net profit attributable to shareholders of $243 million in June 2, 2024, as we recognized the gains from the sales of our virtual banking business, as I just mentioned. We are very glad that the company achieved profitability for the first time in its history. during the first half of this year. Well, this includes a one-time gain from the sale of the virtual banking business. It's still an integral part of our operations, and it is a significant milestone for our company. Now, looking forward to the rest of the year, we continue to see a degree of unpredictability in the market. Meanwhile, as previous announced we started to phase out our cloud services gradually from July and expect the discontinuation will impact our top-line performance for the second half and full year of 2024. Besides that, our focus remains on improving third-party revenue by strengthening the competitiveness of our products and services. We will continue to enhance our growth margin, focus on cost controls, and expand overseas markets to stay on our path to achieving mid-term profitability. Next two pages, we listed key financial metrics of the second quarter of 2024, including the figures from discontinued operations, the virtual banking business in Hong Kong. Lastly, We summarized the adjustments in nine of our scores margin for your reference. That concludes our prepared remarks. Thank you. Thank you. Thank you.
Chan
Thank you, Mr. Chen. Thank you, Mr. Law. Operator, we are open for questions. Please open the mic.
Operator
Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If any reason you would like to remove that question, please press star then two to remove that. And again, to ask a question, please press star followed by one. And as a reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered. We have Judy Zhang with City Group. Let me translate.
Judy Zhang
Thank you for letting me ask the first question. I have two questions. The first question is, we thought the company has already realized the profit, has already made profit in FERSAP. So may I ask whether the company has a dividend payment, a dividend payout plan? And secondly, it's regarding the overseas business. Can management share with us the strategy for the overseas business And also, is there any like an overseas business revenue growth target this year? Thank you.
Chan
Thank you, Judy. For the first question about the dividend, I'm still overtaking the first one. And the second question as to the strategy of an overseas expansion, and Mr. Shen will take this question. Mr. Loh, please.
Luo
Okay. I'll answer your first question on dividend payout plans.
Shen
We are very pleased to see that the company has achieved positive earnings for the first time in history. Although this includes one-off contributions from the sale of PAOB, it nevertheless is an integral part of our operations, and making profit is a significant milestone to us.
Luo
At the same time, we are glad to know that net loss from continuing operations attributable to shareholders
Shen
improved to 70 million yuan, a significant year-on-year decrease of about 38%, which means we are another step closer to our mid-term profitability target. As we believe we are still at a crucial stage of development, we can generate higher values for shareholders through sustainable and healthy development if we focus more on third-party revenue, R&D and innovation, as well as overseas expansion.
Luo
uh we will take into account oc's development needs financial position
Shen
regulatory requirements and the rewards for our shareholders when we consider dividend payout plans. And we will also keep the market updated if there are any new developments. Thank you.
Chan
Let me answer the second question. In the first half of the year, the income of foreign customers increased by 44.8%. The income of foreign customers in our three countries has also exceeded 20%. Next, I'll answer your question about our overseas business.
Shen
Revenue from overseas customers increased by 14.8%, and its share of third-party revenue exceeded 20% in H1. Growth momentum in Hong Kong, China, Southeast Asia, and South Africa is very strong as we actively expand overseas markets, sales network, customer engagement, as well as innovative cooperation model. We therefore remain confident about double-digit growth in overseas revenue.
Chan
For our future overseas development, we mainly focus on markets such as Southeast Asia, Hong Kong, China, South Africa, and the Middle East. Business-wise, our first focus would be for banking solutions. We successfully landed a top Philippines bank in H1.
Shen
That is our strategic customer, CIMB. And then for our next move, we will expand markets such as the Philippines and Thailand to export our credit, smart credit lending system overseas.
Chan
In terms of insurance, thanks to the successful experience of Old Mutual in South Africa, we have successfully signed a contract with Liqiao Renshou, which shows the trend of all channels.
Shen
For insurance business, based on our successful experience with Old Mutual, we were able to land well-linked insurance, replicating our omni-channel agent project.
Chan
In Hong Kong, we want to cancel the deepening of our customers and break through the two fields of the financial government, including the sale of retail banks and small and medium-sized companies that reach the top, and export domestic and foreign trade machines to Hong Kong.
Shen
For Hong Kong market, in addition to broadening customer engagement, we will also extend to financial industry and government partners. Top retail banks, life insurers, and small lending companies are among our target customers. We will also tap into Hong Kong headquarters through foreign banks operating in China.
Chan
Next, we will continue to investigate and research For our next step, we will develop deeper insights into the demands of overseas markets and form integrated solutions of our offerings.
Shen
For instance, we will focus, we will try to export PNC solutions, auto financing solutions, AI voice system, our EKYC products, and so on and so forth.
Chan
Thank you.
Shen
Thank you.
Operator
If you would like to ask any further questions, please press star followed by one on your telephone keypads now. We currently have no further questions, so I would like to hand it back over to Rick for any closing remarks.
Chan
Thank you operator and thank you everyone for joining the call today and if you have any questions, feel free to contact our team and we appreciate your interest in following us and look forward to speaking with you again. Thank you. Have a good night.
Operator
Thank you all for joining today's conference call. I can confirm this has now concluded. Thank you again for joining and you may now disconnect your lines.
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