Connect with us

Technology

OneConnect Announces Second Quarter and First Half 2024 Unaudited Financial Results

Published

1 month ago

on

Net Margin of Continuing Operations to Shareholders Improved to -2.4%
Net Margin of Continuing and Discontinued Operations[1] to Shareholders Improved to 35.1% 

SHENZHEN, China, Aug. 16, 2024 /PRNewswire/ — OneConnect Financial Technology Co., Ltd. (“OneConnect” or the “Company”) (NYSE: OCFT and HKEX: 6638), a leading technology-as-a-service provider for the financial services industry in China, today announced its unaudited financial results for the second quarter and half year ended June 30, 2024.

Second Quarter 2024 Financial Highlights

Revenue from continuing operations was RMB692 million, compared to RMB939 million for the same period of the prior year.Gross margin of continuing operations was 36.6%, compared to 37.5% for the same period of the prior year; non-IFRS gross margin of continuing operations was 38.8%, compared to 40.0% for the same period of the prior year.Net loss from continuing operations attributable to shareholders was RMB17 million, compared to RMB41 million for the same period of the prior year. Net margin of continuing operations to shareholders improved to -2.4% from -4.4% for the same period last year.Net loss from continuing operations per basic and diluted ADS was RMB-0.46, compared to RMB-1.13 during the same period last year.Net profit from continuing and discontinued operations attributable to shareholders was RMB243 million, primarily due to the gains derived from the disposal of virtual banking business, compared to net loss of RMB82 million for the same period of the prior year. Net margin of continuing and discontinued operations to shareholders improved by 43.8ppt to 35.1% compared to -8.7% during the same period last year.Earnings from continuing and discontinued operations per basic and diluted ADS was RMB6.70, compared to RMB-2.25 during the same period last year.

[1]  As previously reported, the Company completed the disposal of its virtual bank business (the “discontinued operations”) to Lufax Holding Ltd (“Lufax”) for a consideration of HK$933 million in cash on April 2, 2024. As a result of the disposal, the historical financial results of the Virtual Banking Business segment have been reflected as the “discontinued operations” in the Company’s condensed consolidated interim financial information and the historical financial results of the remaining business of the Company have been reflected as the “continuing operations” in the Company’s condensed consolidated interim financial information of the first half of 2024 and of the comparative period in 2023.

 

In RMB’000, except percentages
and per ADS amounts

Three Months Ended

Six Months Ended

June 30

YoY

June 30

YoY

2024

2023

2024

2023

Continuing operations

Revenue

Revenue from Ping An Group

401,084

580,795

-30.9 %

822,880

1,117,649

-26.4 %

Revenue from Lufax[1]

54,463

73,142

-25.5 %

112,719

144,499

-22.0 %

Revenue from third-party customers[2]

236,952

285,222

-16.9 %

480,170

570,837

-15.9 %

Total

692,499

939,159

-26.3 %

1,415,769

1,832,985

-22.8 %

Gross profit

253,379

352,385

525,782

687,042

Gross margin

36.6 %

37.5 %

37.1 %

37.5 %

Non-IFRS gross margin

38.8 %

40.0 %

39.4 %

40.1 %

Operating loss

(39,154)

(38,226)

(105,502)

(116,368)

Operating margin

-5.7 %

-4.1 %

-7.5 %

-6.3 %

Net loss from continuing operations
attributable to shareholders

(16,789)

(41,170)

(70,485)

(113,649)

Net margin of continuing operations to
shareholders

-2.4 %

-4.4 %

-5.0 %

-6.2 %

Net loss from continuing operations per
ADS[3], basic and diluted

(0.46)

(1.13)

(1.94)

(3.13)

Net profit/(loss) from continuing and
discontinued operations attributable to
shareholders

243,348

(81,592)

139,014

(190,465)

Net margin of continuing and
discontinued operations to shareholders

35.1 %

-8.7 %

9.8 %

-10.4 %

Earnings/(loss) from continuing and
discontinued operations per ADS[3],
basic and diluted

6.70

(2.25)

3.83

(5.24)

 

[1]  Reference is made to announcements made by Lufax dated July 3, 2024 and July 30, 2024, upon the completion of the allotment and issuance of new Lufax shares under the Lufax Script Dividend Scheme described therein, Lufax will become an indirect non-wholly-owned subsidiary of Ping An Group and the financial results of Lufax Group will be consolidated into the consolidated financial statements of Ping An Group.

[2]  Third-party customers refer to each customer with revenue contribution of less than 5% of the Company’s total revenue in the relevant period. These customers are a key focus of the Company’s diversification strategy.

[3]  In RMB. Each ADS represents 30 ordinary shares.

Chairman, CEO and CFO Comments

Mr. Chongfeng Shen, Chairman of the Board and Chief Executive Officer, commented, “During the first half of 2024, we achieved encouraging results in overseas markets and improved our bottom-line despite the year-over-year decrease in revenue. Throughout this time, we focused on our strategic goal of achieving mid-term profitability by upgrading and integrating products, deepening customer engagement, and expanding our presence in overseas markets. Consequently, our high-value products, protected by high barriers to entry, gained broader appeal from customers, reflected in the 14.8% year-over-year increase in revenue from third-party overseas customers in our continuing operations during the first half of the year. We completed the disposal of our non-core virtual banking business to focus on our core businesses, and continued to implement disciplined expense control measures. As a result, we recorded net profit from continuing operations and discontinued operations during the first half of the year while further cost reductions continued to narrow our loss from continuing operations.”

“Despite our recent decision to gradually phase out the FinCloud business starting in July 2024, we maintain our strategic focus and will continue to empower the digital transformation of financial institutions and enterprises through our three main businesses: digital banking, digital insurance, and the Gamma platform. Leveraging our customer insights, industry expertise, and artificial intelligence technologies, we will further optimize our products, services, and solutions, and expand our premium-plus customer base. At the same time, we will explore broader overseas markets and expand our ecosystem to drive third-party revenue growth to ensure long-term healthy development.”

Mr. Yongtao Luo, Chief Financial Officer, commented, “Since the start of this year, our focus on improving resource and capital allocation efficiency has generated solid results. 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 RMB260 million. This contributed to our net profit from continuing and discontinued operations attributable to shareholders of RMB139 million during the first half of the year, compared to a net loss of RMB190 million for the prior year period. Excluding gains from the sale of virtual banking business, net loss from continuing operations attributable to shareholders also narrowed significantly, falling 59.2% year-over-year and 68.7% sequentially during the second quarter, and 38.0% year-over-year to RMB70 million during the first half of the year. This significant narrowing of our losses from the continuing operation was primarily due to our ROI-oriented approach in managing expenses. In the first half of 2024, adjusted gross margin of continuing operations remained healthy at 39.4%, with operating expenses for continuing operations falling by 21.9% year-over-year. Looking ahead, we will leverage our ample cash position to drive research and development and accelerate innovation in the digital economy as we continue to implement disciplined cost control measures. We are confident this will enable us to grow our market share both domestically and internationally, ultimately achieving sustainable profitability.”

Revenue from Continuing Operations Breakdown 

Three Months Ended

Six Months Ended

In RMB’000, except percentages

June 30

YoY

June 30

YoY

2024

2023

2024

2023

Implementation

168,627

233,089

-27.7 %

326,086

443,023

-26.4 %

Transaction-based and support revenue

 Business origination services

9,940

32,081

-69.0 %

22,775

81,127

-71.9 %

 Risk management services

61,031

72,574

-15.9 %

126,514

150,317

-15.8 %

 Operation support services

131,329

249,040

-47.3 %

265,391

471,585

-43.7 %

 Cloud services platform

289,109

322,373

-10.3 %

607,416

614,620

-1.2 %

 Post-implementation support services

14,427

13,308

8.4 %

29,348

25,649

14.4 %

 Others

18,036

16,694

8.0 %

38,239

46,664

-18.1 %

 Sub-total for transaction-based and support
revenue

523,872

 

706,070

-25.8 %

1,089,683

 

1,389,962

-21.6 %

Total Revenue from Continuing Operations

692,499

939,159

-26.3 %

1,415,769

1,832,985

-22.8 %

 

Revenue from continuing operations in the second quarter of 2024 decreased by 26.3% to RMB692 million from RMB939 million during the same period last year, primarily due to strategic adjustments made to our revenue mix as we focus on high-value products. Implementation revenue decreased by 27.7% year-over-year to RMB169 million during the second quarter of 2024, mainly due to a decline in demand for implementation of financial services systems domestically. Revenue from business origination services decreased by 69.0% year-over-year to RMB10 million during the second quarter of 2024, primarily due to a decline in transaction volumes from loan origination systems under digital credit management solutions. Revenue from risk management services decreased by 15.9% year-over-year to RMB61 million during the second quarter of 2024, mainly due to a decline in transaction volumes from banking related risk analytic solutions. Revenue from operation support services decreased by 47.3% year-over-year to RMB131 million during the second quarter of 2024, primarily due to a shift in business model for a number of auto ecosystem service providers where we transitioned from acting as a contractor to a distributor. Revenue from cloud services platform decreased by 10.3% year-over-year to RMB289 million during the second quarter of 2024, primarily due to reduced demand of cloud services.

 

Three Months Ended

Six Months Ended

In RMB’000, except percentages

June 30

YoY

June 30

YoY

2024

2023

2024

2023

Digital Banking segment

100,279

235,332

-57.4 %

261,832

494,069

-47.0 %

Digital Insurance segment

127,091

190,587

-33.3 %

258,977

367,244

-29.5 %

Gamma Platform segment

465,129

513,240

-9.4 %

894,960

971,671

-7.9 %

Total Revenue from Continuing
Operations

692,499

939,159

-26.3 %

1,415,769

1,832,985

-22.8 %

 

Revenue from Gamma Platform segment in the second quarter of 2024 decreased by 9.4% to RMB465 million from RMB513 million during the same period last year, primarily due to reduced demand of cloud services. Revenue from Digital Banking segment decreased by 57.4% to RMB100 million in the second quarter of 2024 from RMB235 million during the same period last year, mainly due to a decline in transaction volumes from business origination and risk management services, reflecting our continuing effort to phase out lower-value products. Revenue from Digital Insurance segment decreased by 33.3% to RMB127 million in the second quarter of 2024 from RMB191 million during the same period last year, primarily due a shift in business model for a number of auto ecosystem service providers where we transitioned from acting as a contractor to a distributor.

Second Quarter 2024 Financial Results

Revenue from Continuing Operations

Revenue from continuing operations in the second quarter of 2024 decreased by 26.3% to RMB692 million from RMB939 million during the same period last year, primarily due to strategic adjustments made to our revenue mix as we focus on high-value products.  

Cost of Revenue from Continuing Operations

Cost of revenue from continuing operations in the second quarter of 2024 decreased by 25.2% to RMB439 million from RMB587 million during the same period last year, in-line with the decrease in revenue.

Gross Profit from Continuing Operations

Gross profit from continuing operations in the second quarter of 2024 decreased to RMB253 million from RMB352 million during the same period last year. Gross margin of continuing operations declined slightly to 36.6%, compared to 37.5% in the prior year. Non-IFRS gross margin of continuing operations was 38.8%, compared to 40.0% in the prior year. For a reconciliation of the Company’s IFRS and non-IFRS gross margin, please refer to “Reconciliation of IFRS and Non-IFRS Results for continuing operations (Unaudited).”

Operating Loss and Expenses from Continuing Operations

Total operating expenses from continuing operations in the second quarter of 2024 decreased to RMB296 million from RMB402 million during the same period last year. As a percentage of revenue, total operating expenses from continuing operations decreased by 0.1ppt to 42.7% from 42.8% during the same period last year.

Research and Development expenses from continuing operations in the second quarter of 2024 decreased to RMB186 million from RMB252 million in the prior year, mainly due to a decrease in personnel costs and the ROI-oriented approach we are taking to manage research and development projects. As a percentage of revenue, research and development expenses from continuing operations slightly increased to 26.9% from 26.8% in the prior year.Sales and Marketing expenses from continuing operations in the second quarter of 2024 decreased to RMB44 million from RMB57 million in the prior year, mainly due to a decrease in personnel costs as we enhance sales efficiency and capabilities. As a percentage of revenue, sales and marketing expenses from continuing operations were 6.4%, compared to 6.1% in the prior year.General and Administrative expenses from continuing operations in the second quarter of 2024 decreased to RMB66 million from RMB93 million in the prior year. As a percentage of revenue, general and administrative expenses from continuing operations decreased to 9.5% from 9.9% during the same period last year, primarily due to a decrease in personnel costs.

Operating loss from continuing operations in the second quarter of 2024 increased slightly to RMB39 million from RMB38 million during the same period last year. Operating margin of continuing operations was -5.7%, compared to -4.1% in the prior year.

Net Loss from Continuing Operations Attributable to Shareholders

Net loss from continuing operations attributable to OneConnect’s shareholders in the second quarter of 2024 decreased by 59.2% to RMB17 million from RMB41 million during the same period last year. Net loss from continuing operations attributable to OneConnect’s shareholders per basic and diluted ADS decreased to RMB-0.46, compared to RMB-1.13 during the same period last year. Weighted average number of ordinary shares in the second quarter of 2024 was 1,089,589,125.

Net Profit from Continuing and Discontinued Operations Attributable to Shareholders

Net profit from continuing and discontinued operations attributable to OneConnect’s shareholders in the second quarter of 2024 was RMB243 million, compared to net loss of RMB82 million during the same period last year, which was primarily due to the gains derived from the disposal of virtual banking business. Earnings from continuing and discontinued operations attributable to OneConnect’s shareholders per basic and diluted ADS increased to RMB6.70, compared to RMB-2.25 during the same period last year. Weighted average number of ordinary shares in the second quarter of 2024 was 1,089,589,125.

Cash Flow

For the second quarter of 2024, net cash used in operating activities was RMB183 million, net cash generated from investing activities was RMB224 million of which RMB723 million was generated from the disposal of virtual banking business, and net cash used in financing activities was RMB29 million.

Conference Call Information

Date/Time

Friday, August 16, 2024 at 8:00 a.m., U.S. Eastern time

Friday, August 16, 2024 at 8:00 p.m., Hong Kong time

 

Online registration

 

https://www.netroadshow.com/events/login?show=1b2c1d6f&confId=69140

The financial results and an archived transcript will be available at OneConnect’s investor relations website at ir.ocft.com.

About OneConnect 

OneConnect Financial Technology Co., Ltd. is a technology-as-a-service provider for financial services industry. 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 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 institutions.

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

Safe Harbor Statement 

This press release 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 and engagement with Ping An Group and its related parties, which are 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; 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; 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 U.S. Securities and Exchange Commission. 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.

Use of Unaudited Non-IFRS Financial Measures

The unaudited consolidated financial information is prepared in accordance with IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) . Non-IFRS measures are used in gross profit and gross margin, adjusted to exclude non-cash items, which consist of amortization of intangible assets recognized in cost of revenue, depreciation of property and equipment recognized in cost of revenue, and share-based compensation expenses recognized in cost of revenue. OneConnect’s management regularly review non-IFRS gross profit and non-IFRS gross margin to assess the performance of our business. By excluding non-cash items, these financial metrics allow OneConnect’s management to evaluate the cash conversion of one dollar revenue on gross profit. OneConnect uses these non-IFRS financial measures to evaluate its ongoing operations and for internal planning and forecasting purposes. OneConnect believes that non-IFRS financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of results of operations, and assists in comparisons with other companies, many of which use similar financial information. OneConnect also believes that presentation of the non-IFRS financial measures provides useful information to its investors regarding its results of operations because it allows investors greater transparency to the information used by OneConnect’s management in its financial and operational decision making so that investors can see through the eyes of the OneConnect’s management regarding important financial metrics that the management uses to run the business as well as allowing investors to better understand OneConnect’s performance. However, non-IFRS financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from similarly-titled non-IFRS measures used by other companies. In light of the foregoing limitations, you should not consider non-IFRS financial measure in isolation from or as an alternative to the financial measure prepared in accordance with IFRS. Whenever OneConnect uses a non-IFRS financial measure, a reconciliation is provided to the most closely applicable financial measure stated in accordance with IFRS. You are encouraged to review the related IFRS financial measures and the reconciliation of these non-IFRS financial measures to their most directly comparable IFRS financial measures. For more information on non-IFRS financial measures, please see the table captioned “Reconciliation of IFRS and non-IFRS results (Unaudited)” set forth at the end of this press release.

Contacts

Investor Relations: 
OCFT IR Team 
OCFT_IR@ocft.com

Media Relations: 
OCFT PR Team 
pub_jryztppxcb@pingan.com.cn

 

ONECONNECT

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

Three Months Ended

 June 30

Six Months Ended

 June 30

2024

2023

2024

2023

RMB’000

RMB’000

RMB’000

RMB’000

Continuing operations

Revenue

692,499

939,159

1,415,769

1,832,985

Cost of revenue

(439,120)

(586,774)

(889,987)

(1,145,943)

Gross profit

253,379

352,385

525,782

687,042

Research and development expenses

(186,457)

(251,893)

(399,640)

(528,039)

Selling and marketing expenses

(44,068)

(56,828)

(92,568)

(116,030)

General and administrative expenses

(65,507)

(92,904)

(146,027)

(173,117)

Net impairment losses on financial and
contract assets

(9,543)

(8,739)

(23,233)

(32,804)

Other income, gains or loss–net

13,042

19,753

30,184

46,580

Operating loss

(39,154)

(38,226)

(105,502)

(116,368)

Finance income

19,346

5,726

29,686

11,516

Finance costs

(3,710)

(5,312)

(7,988)

(11,453)

Finance income – net

15,636

414

21,698

63

Share of gain of associate and joint venture –
net

–

–

–

7,157

Impairment charges on associate

–

–

–

(7,157)

Loss before income tax

(23,518)

(37,812)

(83,804)

(116,305)

Income tax benefit/(expense)

2,435

(7,274)

2,346

(5,402)

Loss from continuing operations

(21,083)

(45,086)

(81,458)

(121,707)

Profit/(loss) from discontinued operations

260,137

(40,422)

209,499

(76,816)

Profit/(loss) for the period

239,054

(85,508)

128,041

(198,523)

Profit/(loss) attributable to:

– Owners of the Company

243,348

(81,592)

139,014

(190,465)

– Non-controlling interests

(4,294)

(3,916)

(10,973)

(8,058)

239,054

(85,508)

128,041

(198,523)

Other comprehensive income/(loss), net of
tax:

Items that may be subsequently reclassified to
profit or loss

– Foreign currency translation differences

(3,979)

(1,660)

(2,645)

(4,863)

– Exchange differences on translation of
discontinued operations

–

33,884

177

22,233

– Changes in the fair value of debt instruments
measured at fair value through other
comprehensive income of discontinued
operations

–

4,781

6,056

1,057

– Disposal of subsidiaries

18,237

–

18,237

–

Item that will not be reclassified subsequently
to profit or loss

– Foreign currency translation differences

11,866

74,846

13,808

44,191

Other comprehensive income for the period,
net of tax

26,124

11,851

35,633

62,618

Total comprehensive income/(loss) for the
period

 

265,178

 

26,343

 

163,674

 

(135,905)

Total comprehensive income/(loss)
attributable to:

– Owners of the Company

269,472

30,259

174,647

(127,847)

– Non-controlling interests

(4,294)

(3,916)

(10,973)

(8,058)

265,178

26,343

163,674

(135,905)

Total comprehensive income/(loss)
attributable to owners of the Company
arises from:

– Continuing operations

9,335

32,016

(41,085)

(74,321)

– Discontinued operations

260,137

(1,757)

215,732

(53,526)

269,472

30,259

174,647

(127,847)

Loss from continuing operations per share
attributable to the owners of the Company

(expressed in RMB per share)

– Basic and diluted

(0.02)

(0.04)

(0.06)

(0.10)

Loss from continuing operations per ADS
attributable to the owners of the Company

(expressed in RMB per share)

– Basic and diluted

(0.46)

(1.13)

(1.94)

(3.13)

Earnings/(loss) per share attributable to the
owners of the Company

(expressed in RMB per share)

– Basic and diluted

0.23

(0.07)

0.13

(0.17)

Earnings/(loss) per ADS attributable to the
owners of the Company

(expressed in RMB per share)

– Basic and diluted

6.70

(2.25)

3.83

(5.24)

 

 

 

ONECONNECT

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

June 30

December 31

2024

2023

RMB’000

RMB’000

ASSETS

Non–current assets

Property and equipment

65,832

85,076

Intangible assets

340,483

471,371

Deferred tax assets

768,398

768,276

Financial assets measured at fair value through
other comprehensive income

 

3,204

 

1,372,685

Restricted cash and time deposits over three
months

200

5,319

Prepayments and other receivables

6,962

6,663

Total non-current assets

1,185,079

2,709,390

Current assets

Trade receivables

930,258

710,669

Contract assets

79,941

95,825

Prepayments and other receivables

898,296

905,691

Financial assets measured at amortized cost from
virtual bank

–

3,081

Financial assets measured at fair value through
other comprehensive income

–

853,453

Financial assets measured at fair value through
profit or loss

640,431

925,204

Derivative financial assets

52,750

38,008

Restricted cash and time deposits over three
months

469,405

447,564

Cash and cash equivalents

1,438,886

1,379,473

Total current assets

4,509,967

5,358,968

Total assets

5,695,046

8,068,358

EQUITY AND LIABILITIES

EQUITY

Share capital

78

78

Shares held for share option scheme

(149,544)

(149,544)

Other reserves

11,027,689

10,989,851

Accumulated losses

(7,734,600)

(7,873,614)

Equity attributable to equity owners of the
Company

3,143,623

2,966,771

Non-controlling interests

(29,952)

(18,979)

Total equity

3,113,671

2,947,792

LIABILITIES

Non–current liabilities

Trade and other payables

14,379

28,283

Contract liabilities

12,901

17,126

Deferred tax liabilities

520

2,079

Total non–current liabilities

27,800

47,488

Current liabilities

Trade and other payables

2,008,719

1,981,288

Payroll and welfare payables

267,881

385,908

Contract liabilities

134,192

138,563

Short-term borrowings

142,783

251,732

Customer deposits

–

2,261,214

Other financial liabilities from virtual bank

–

54,373

Total current liabilities

2,553,575

5,073,078

Total liabilities

2,581,375

5,120,566

Total equity and liabilities

5,695,046

8,068,358

 

 

 

ONECONNECT

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended
June 30

Six Months Ended

 June 30

2024

2023

2024

2023

RMB’000

RMB’000

RMB’000

RMB’000

Net cash used in operating
activities

 

(182,757)

 

(19,650)

 

(297,993)

 

(632,914)

Net cash generated from/(used in)
investing activities

 

224,450

 

(108,947)

 

480,298

 

298,119

Net cash used in financing
activities

(28,821)

(44,480)

(129,792)

(88,901)

Net increase/(decrease) in cash and
cash equivalents

 

12,872

 

(173,077)

 

52,513

 

(423,696)

    Cash and cash equivalents at the
beginning of the period

1,420,891

1,420,891

1,379,473

1,907,776

    Effects of exchange rate changes
on cash and cash equivalents

5,123

46,159

6,900

35,433

Cash and cash equivalents at the
end of period

1,438,886

1,519,513

1,438,886

1,519,513

 

  

 

ONECONNECT

RECONCILIATION OF IFRS AND NON-IFRS RESULTS 

FOR CONTINUING OPERATIONS

(Unaudited)

Three Months Ended
June 30

Six Months Ended
June 30

2024

2023

2024

2023

RMB’000

RMB’000

RMB’000

RMB’000

Gross profit from continuing operations

253,379

352,385

525,782

687,042

Gross margin of continuing operations

36.6 %

37.5 %

37.1 %

37.5 %

Non-IFRS adjustment

Amortization of intangible assets recognized in cost
of revenue

 

13,686

 

21,374

 

29,228

 

43,583

Depreciation of property and equipment recognized
in cost of revenue

 

1,056

 

1,469

 

2,208

 

2,823

Share-based compensation expenses recognized in
cost of revenue

 

334

 

894

 

562

 

1,330

Non-IFRS gross profit from continuing operations

268,455

376,122

557,780

734,778

Non-IFRS gross margin of continuing operations

38.8 %

40.0 %

39.4 %

40.1 %

 

View original content:https://www.prnewswire.com/news-releases/oneconnect-announces-second-quarter-and-first-half-2024-unaudited-financial-results-302224276.html

SOURCE OneConnect Financial Technology Co., Ltd.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

The Radio Market is projected to grow by USD 8.47 Billion from 2024-2028, with AI-driven transformations enhancing access to music and live updates – Technavio

Published

50 mins ago

on

September 24, 2024

By

NEW YORK, Sept. 24, 2024 /PRNewswire/ — Report with the AI impact on market trends – The global radio market size is estimated to grow by USD 8.47 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  3%  during the forecast period. Access to latest music and live updates is driving market growth, with a trend towards online radio services  However, availability of music streaming services  poses a challenge – Key market players include Audacy Inc., Australian Broadcasting Corp., BCE Inc., Beasley Broadcast Group Inc., Bertelsmann SE and Co. KGaA, Bonneville International, Cox Enterprises Inc., Cumulus Media Inc., Deseret Management Corp., EMMIS Communications Corp., Global Media Group Services Ltd., Heinrich Bauer Verlag KG, iHeartMedia Inc., Minnesota Public Radio, Paramount Global, SAGA COMMUNICATIONS INC., SALEM MEDIA GROUP INC., Sirius XM Holdings Inc., The Walt Disney Co., and Townsquare Media Inc..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View the snapshot of this report

Radio Market Scope

Report Coverage

Details

Base year

2023

Historic period

2018 – 2022

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 3%

Market growth 2024-2028

USD 8479.2 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

2.91

Regional analysis

North America, Europe, APAC, South America, and Middle East and Africa

Performing market contribution

North America at 30%

Key countries

US, UK, Germany, China, and Japan

Key companies profiled

Audacy Inc., Australian Broadcasting Corp., BCE Inc., Beasley Broadcast Group Inc., Bertelsmann SE and Co. KGaA, Bonneville International, Cox Enterprises Inc., Cumulus Media Inc., Deseret Management Corp., EMMIS Communications Corp., Global Media Group Services Ltd., Heinrich Bauer Verlag KG, iHeartMedia Inc., Minnesota Public Radio, Paramount Global, SAGA COMMUNICATIONS INC., SALEM MEDIA GROUP INC., Sirius XM Holdings Inc., The Walt Disney Co., and Townsquare Media Inc.

Market Driver

Online radio streaming is a popular way to access radio content, with many vendors offering their services over the Internet. Some radio channels have merged with streaming portals, providing listeners with the flexibility to choose between live radio and on-demand music. Vendors like Pandora and Apple Music offer both services. The growing Internet penetration and mobile Internet availability are driving the demand for Internet radio, positively impacting the global radio market during the forecast period. 

[Background music playing softly in the background] Narrator (enthusiastically): “Hello and welcome to this week’s edition of Radio Market! Today, we’re diving into the latest trends shaping the radio industry. First up, mobile radios are on the rise, with interoperability ensuring seamless communication for terrestrial users. Digital technology brings US hand-held devices, like walkie talkies, offering group chats, enhanced voice quality, longer battery life, and budget-friendly prices. Advancements include breakthroughs in frequency ranges, allowing for higher quality audio and priority access. In the commercial sector, Cryptomania radio and Triton Digital lead the way, while military modernization embraces digital capabilities for trunking, digital capabilities, group calling, and rapid voice transmission. In the transportation and utility sectors, smart radios offer superior range accessibility. IHeartMedia in Athens, Greece, is testing analog voice with two-way communications, while digital technology continues to revolutionize radio communications. Stay tuned for more Radio Market updates!”

Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!

Market Challenges

Music streaming services, including Amazon Music, Google Play Music, and Deezer, have emerged as significant competitors in the radio industry. With growing popularity and competitive pricing, an increasing number of listeners are opting for online music streaming instead of traditional radio. Many music streaming applications are accessible for free online, enabling users to play their preferred tracks. The proliferation of mobile Internet penetration allows listeners to access and download music on their mobile devices, offering convenience and flexibility. Music streaming platforms provide an extensive range of music genres and tracks, posing a challenge to the global radio market in the forecast period.[Background Music Playing] Narrator (Voiceover): “Welcome listeners to Cryptomania Radio, where we bring you the latest business news. Today, we’re discussing the challenges facing the radio industry, particularly in the areas of public safety communications. With the rise of digital capabilities in radio, players like Triton Digital and iHeartMedia are investing heavily in smart radio solutions. Military modernization and the need for real-time communication in the face of crime, terrorism, and natural disasters, have pushed the demand for high-quality audio, priority access, and effective response systems. Traditional analog voice systems are being replaced with two-way communications, trunking, and group calling. New technologies like rapid voice and site trunking are becoming essential for public safety agencies. However, these demands come with challenges such as spectrum efficiency, harmonized spectrum, and security threats. Cross-agency coordination and information sharing are also major factors. Vendor offerings, research methodologies, and interface manufacturers are key players in this market. The micromarkets for these solutions show individual growth trends, with joint ventures and research and development driving innovation. Stay tuned for more insights on Cryptomania Radio.”

Discover how AI is revolutionizing market trends- Get your access now!

Segment Overview 

This radio market report extensively covers market segmentation by

Type 1.1 Broadcast radio1.2 Online mobile radio1.3 Satellite radioRevenue 2.1 Advertising2.2 Public license fee2.3 SubscriptionGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 Broadcast radio-  The Radio Market is a thriving business sector where broadcasters reach out to diverse audiences through various radio formats. Advertisers invest in radio advertising due to its wide reach and affordability. Radio stations generate revenue through sponsorships, commercials, and subscriptions. Effective programming and audience engagement strategies are essential for radio stations to retain listeners and attract new ones. Radio’s accessibility and convenience make it an attractive advertising medium for businesses aiming to expand their customer base.

Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics

Research Analysis

[Opening jingle plays] [Host]: “Welcome to Cryptomania Radio, your daily source for the latest technology trends and innovations. Today, we’re diving into the world of modern radio communications. With the rise of digital capabilities, radio technology is evolving at an incredible pace. Triton Digital and other players are leading the charge towards smart radio, offering high-quality audio, priority access, and group calling features. But radio communications aren’t just for broadcasters anymore. Military modernization, crime prevention, and disaster response are all areas where two-way communications are essential. In Athens, Greece, analog voice systems are being replaced with digital trunking networks, providing more effective response to emergencies. New technologies like rapid voice and high-priority access are revolutionizing the way we communicate. From micromarkets to individual growth trends, research and development is key. Vendor offerings, interface manufacturers, and system integrators are all working together in joint ventures to push the boundaries of what’s possible. Stay tuned for more insights on this exciting topic.” [Closing jingle plays]

Market Research Overview

[Intro music plays] [Host]: “Welcome to Cryptomania Radio, your daily source for the latest trends and innovations in technology. Today, we’re diving into the world of radio communications, focusing on military modernization and the evolution of smart radios. [SFX: Military marching music] [Host]: “Gone are the days of analog voice and two-way communications. Military modernization has led to the adoption of digital capabilities, including group calling, priority access, and high-quality audio. But what about public safety and emergency response? Real-time communication is crucial during crime, terrorism, and natural disasters. [SFX: Siren sound] [Host]: “New technologies, such as site trunking and cross-agency coordination, are essential for effective response. Spectrum efficiency and harmonized spectrum are major factors in the micromarkets of individual growth trends. Vendor offerings from companies like Triton Digital and iHeartMedia are shaping the future of radio communications. [SFX: Radio static] [Host]: “From commercial applications in the transportation and utility sectors to advancements in handheld devices like walkie-talkies, digital technology is revolutionizing the way we communicate. Stay tuned for more on interoperability, seamless communication, and the future of radio communications. [SFX: Upbeat music]” [End music plays] [Host]: “That’s all for today on Cryptomania Radio. Join US tomorrow for another exciting episode. Until then, stay informed and stay connected.”

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeBroadcast RadioOnline Mobile RadioSatellite RadioRevenueAdvertisingPublic License FeeSubscriptionGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/the-radio-market-is-projected-to-grow-by-usd-8-47-billion-from-2024-2028–with-ai-driven-transformations-enhancing-access-to-music-and-live-updates–technavio-302255533.html

SOURCE Technavio

Continue Reading

Technology

Wireless Router Market to Grow by USD 8.09 Billion from 2024-2028, Driven by Rising Adoption of Smart Home Systems, AI Powered Report by Technavio

Published

50 mins ago

on

September 24, 2024

By

NEW YORK, Sept. 24, 2024 /PRNewswire/ — Report on how AI is driving market transformation- The global wireless router market size is estimated to grow by USD 8.09 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 9.24%  during the forecast period. Increasing adoption of smart connected home systems is driving market growth, with a trend towards increasing use of wireless router in retail industry. However, inferior communication network infrastructure in developing regions poses a challenge. Key market players include Adtran Holdings Inc., Amped Wireless, ASUSTeK Computer Inc., Broadcom Inc., Buffalo Americas Inc., China Huaxin Post and Telecom Technologies Co. Ltd., Cisco Systems Inc., D Link Corp., DrayTek Corp., EDIMAX Technology Co. Ltd., Extreme Networks Inc., Hon Hai Precision Industry Co. Ltd., Huawei Investment & Holding Co., Ltd., Juniper Networks Inc., MERCUSYS Technologies Co. Ltd., Netgear Inc., Shenzhen Tenda Technology Co. Ltd., SIA Mikrotikls, TP Link Corp. Ltd., and Xiaomi Communications Co. Ltd..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View your snapshot now

Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

End-user (Non-Residential and Residential), Type (Fixed and Mobile), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

Region Covered

North America, Europe, APAC, South America, and Middle East and Africa

Key companies profiled

Adtran Holdings Inc., Amped Wireless, ASUSTeK Computer Inc., Broadcom Inc., Buffalo Americas Inc., China Huaxin Post and Telecom Technologies Co. Ltd., Cisco Systems Inc., D Link Corp., DrayTek Corp., EDIMAX Technology Co. Ltd., Extreme Networks Inc., Hon Hai Precision Industry Co. Ltd., Huawei Investment & Holding Co., Ltd., Juniper Networks Inc., MERCUSYS Technologies Co. Ltd., Netgear Inc., Shenzhen Tenda Technology Co. Ltd., SIA Mikrotikls, TP Link Corp. Ltd., and Xiaomi Communications Co. Ltd.

Key Market Trends Fueling Growth

In the retail industry, providing a cost-effective and optimal customer experience is crucial in a highly competitive market. Wireless connected solutions, including point-of-sale (POS) systems, vending machines, radio frequency identification systems, and kiosks, help retailers streamline processes and enhance the shopping experience. POS systems enable flexible payment options and improved queue management, creating a better customer experience. Retail businesses face numerous risks related to security, safety, communications, and building automation. Remote monitoring and security systems, such as machine-to-machine (M2M) security systems, play a vital role in mitigating these risks. These systems detect intrusion and shoplifting, handle fire and explosion incidents, and manage access authorizations. Retail security devices, like security alarms and mechanical security, are cost-effective solutions to protect merchandise. Technologies like electronic article surveillance are adopted to prevent shoplifting. M2M security systems, with declining installation costs and tariff rates, offer retailers real-time alerts and remote monitoring capabilities. Wireless routers are essential for the functioning of POS systems and security systems, enabling seamless information exchange among multiple devices in the retail sector. These factors contribute to the growth of the global wireless router market during the forecast period. 

The Wireless Router market is experiencing significant growth due to the increasing trend of Smart City Initiatives and the need for connectivity in various infrastructure projects. With the expansion of intelligent surveillance networks, public Wi-Fi hotspots, and smart transportation systems, the demand for high-performance wireless routers is on the rise. Consumer electronics such as gaming consoles, cellphones, and streaming devices also contribute to the market’s growth. Mesh networking is a popular trend, with mesh networking systems offering improved coverage and next-generation connectivity. However, the market faces challenges such as security worries, cybersecurity risks, and technological fragmentation due to the proliferation of ransomware, malware, and unauthorized access. High-end wireless routers are in demand for both residential and business settings, but their limited coverage necessitates the use of range extenders. Broadband connectivity and internet infrastructure investments are crucial for regulatory compliance requirements, especially in rural areas where digital services are essential. The market is witnessing the emergence of 5G, but privacy concerns persist, leading to the development of privacy-enhancing features and transparent data practices. Wi-Fi standards, including Wi-Fi 4 (802.11n), Wi-Fi 5 (802.11ac), and Wi-Fi 6 (802.11ax), continue to evolve to meet the demands of consumers and businesses alike. 

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

Market Challenges

 A  network infrastructure is essential for efficient Internet communication and multimedia streaming, which involves Voice over Internet Protocol (VoIP) calls and live streaming of music and videos. However, several developing countries, including Bangladesh, Central African Republic, Nepal, and Haiti, lack the necessary Internet network and telecom infrastructure to support high-speed Internet networks. In many Asian countries, 4G technology is still in its initial stages, with Pakistan being one of the countries yet to witness significant adoption. The absence of 4G technology can hinder the growth of the wireless router market, as it is a crucial component of reliable and uninterrupted telecom services. Moreover, many rural areas in the Asia-Pacific and Middle East and Africa regions are still without 4G connections, and several developing countries lack geographically extensive telecom networks. These challenges will restrict the growth of the global wireless router market during the forecast period.The wireless router market faces challenges in providing reliable products that support interoperable single-band, dual-band, and tri-band devices. Interference from frequency bands can affect dependable internet access, especially during simultaneous connections. Dual-band routers are popular in industries like financial services, information technology, telecommunications, retail, and healthcare for connected devices such as heart-rate monitoring equipment and patient-centric care delivery. With the rise of high-speed internet, Wi-Fi 6 standards, smart homes, and 5G infrastructure, businesses need routers that can handle bandwidth-intensive apps, smart home gadgets, and network traffic. D-Link’s AI-powered Wi-Fi router and Wi-Fi 6E routers offer solutions for high-speed connectivity, security features, and seamless integration with smart devices. Companies like D-Link are addressing these challenges to meet the demands of distant work, online learning, and 5G networks for higher bandwidths and internet penetration.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

Segment Overview

This wireless router market report extensively covers market segmentation by

End-user 1.1 Non-Residential1.2 ResidentialType 2.1 Fixed2.2 MobileGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 Non-Residential-  The Wireless Router Market is experiencing significant growth due to the increasing demand for reliable and high-speed internet connections. Companies are investing in advanced technologies like MU-MIMO and beamforming to enhance network performance. Additionally, the rise of IoT devices and work-from-home culture is driving the market forward. Major players include Netgear, D-Link, and TP-Link, who are continuously innovating to meet consumer needs. Overall, the Wireless Router Market is poised for continued expansion in the coming years.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2018 – 2022) 

Research Analysis

The wireless router market is a dynamic and growing industry that provides high-speed internet access for private computer networks, enabling wireless-only LAN connections for various devices such as laptops, smart home devices, Smart TVs, speakers, security cameras, and more. With the increasing number of connected devices and bandwidth-intensive apps, the demand for wireless routers and wireless access points is on the rise. The wireless router industry caters to both residential and commercial sectors, offering single-band, dual-band, and tri-band options to meet diverse network traffic needs. The advent of 5G infrastructure and Wi-Fi 6 technology, including Wi-Fi 6E routers, has further boosted the market’s growth. Mobile broadband and M2M communication are also driving new opportunities in the wireless router market, particularly for home offices and other remote work environments.

Market Research Overview

The wireless router market is a dynamic and growing industry that provides high-speed internet access for both residential and business settings. Wireless routers and wireless access points enable the creation of private computer networks, allowing connected devices such as laptops, smart home devices, and IoT gadgets to access the internet. The industry caters to various sectors including financial services, information technology, telecommunications, retail, and healthcare, among others. Wi-Fi technology, with its superior performance and interoperability, is a key driver for the market. Single-band, dual-band, and tri-band wireless routers cater to different needs, with dual-band and tri-band routers offering better performance in high-density areas and simultaneous connections. The wireless router industry is witnessing significant growth due to the increasing number of connected devices, the rise of high-speed internet markets, and the adoption of Wi-Fi 6 standards. The market is also being influenced by the proliferation of 5G networks and the higher bandwidths they offer, as well as the trend towards mesh networking systems. Security features are becoming increasingly important, with consumers and businesses demanding secure and reliable products. The market is also witnessing the emergence of AI-powered Wi-Fi routers and the integration of Wi-Fi technology into smart homes and cities. The market is expected to continue growing, driven by the increasing demand for next-generation connectivity and the increasing number of bandwidth-intensive apps and smart home gadgets. However, security worries remain a concern, and manufacturers must address these concerns to ensure customer trust.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

End-userNon-ResidentialResidentialTypeFixedMobileGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/wireless-router-market-to-grow-by-usd-8-09-billion-from-2024-2028–driven-by-rising-adoption-of-smart-home-systems-ai-powered-report-by-technavio-302256627.html

SOURCE Technavio

Continue Reading

Technology

The home energy management systems market is projected to grow by USD 1.97 Billion from 2024-2028, with AI impacting trends and rising smart grid adoption driving revenue – Technavio

Published

50 mins ago

on

September 24, 2024

By

NEW YORK, Sept. 24, 2024 /PRNewswire/ — Report on how AI is redefining market landscape – The Global Home Energy Management Systems market  size is estimated to grow by USD 1.97 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  10.01%  during the forecast period.  Growing adoption of smart grid technologies is driving market growth, with a trend towards growing investment in smart cities and smart homes  However, high cost of implementation and interoperability issues  poses a challenge – Key market players include Capgemini Service SAS, Carrier Global Corp., Cisco Systems Inc., Comcast Corp., ecobee, Emerson Electric Co., General Electric Co., Honeywell International Inc., Intel Corp., Johnson Controls International Plc., Lennox International Inc., Liricco Technologies Ltd., Panasonic Holdings Corp., Resideo Technologies Inc., Robert Bosch GmbH, Schneider Electric SE, Siemens AG, Snap One LLC, tado GmbH, and Vivint Inc..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View your snapshot now

Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Component (Hardware, Software, and Services), Product (Lighting controls, Programmable thermostats, Self-monitoring systems, and Advanced central controllers), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

Region Covered

North America, Europe, APAC, South America, and Middle East and Africa

Key companies profiled

Capgemini Service SAS, Carrier Global Corp., Cisco Systems Inc., Comcast Corp., ecobee, Emerson Electric Co., General Electric Co., Honeywell International Inc., Intel Corp., Johnson Controls International Plc., Lennox International Inc., Liricco Technologies Ltd., Panasonic Holdings Corp., Resideo Technologies Inc., Robert Bosch GmbH, Schneider Electric SE, Siemens AG, Snap One LLC, tado GmbH, and Vivint Inc.

Key Market Trends Fueling Growth

The smart home market is experiencing significant growth as consumers seek to enhance convenience and efficiency in their living spaces. Advanced sensors and affordable technologies enable homeowners to connect and control appliances such as heating systems, lighting, air conditioning, computers, TVs, entertainment systems, security devices, and cameras using smartphones and tablets. Artificial intelligence predicts consumer preferences based on historical data. The rise of smart homes is driven by the increasing number of working couples with dual incomes in North America, Europe, and emerging economies in APAC. Governments worldwide are investing in smart city projects, particularly in the Middle East, increasing the demand for home energy management systems and fueling the growth of the global market.

The Home Energy Management Systems (HEMS) market is experiencing significant growth due to increasing concerns over greenhouse gas emissions and the need to reduce energy consumption. This Industry Analysis Report covers trends such as the adoption of hybrid technology, IoT technologies, and machine learning in HEMS. Key players like Iberdrola are leading the way with advanced central controllers, intelligent HVAC controllers, and self-monitoring systems. New construction and multi-family residences are embracing smart home technologies, including programmable communicating thermostats and smart meters. Deployment types include cloud deployment and Wi-Fi, with financial incentives like rebates and tax credits driving adoption. HEMS also supports smart grid development and EV charging. Power consumption data analytics and electricity usage patterns help homeowners reduce energy bills and carbon footprints. Advanced data analytics and artificial intelligence further optimize energy management strategies. Wireless protocols technology ensures seamless integration of various HEMS components. Overall, HEMS is a crucial technology for smart building development and reducing carbon footprints.

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

Market Challenges

Home energy management systems (HEMS) offer significant energy savings by allowing homeowners to monitor and control their energy consumption in real-time. However, the high initial investment required to install these systems, which includes sensors, displays, software, and professional installation of smart thermostats, discourages many homeowners from adopting HEMS. The average cost of a smart thermostat ranges from USD250 to USD350, and additional installation fees add to the expense. Furthermore, maintenance costs are also high, increasing the overall cost of ownership. Another challenge is the use of proprietary communication technologies by various smart devices, which necessitates the use of a single platform or hub to ensure seamless integration and automation. This limits consumer choice and requires a significant investment in a single provider or multiple hubs, which may hinder the growth of the global HEMS market. In summary, the high initial and ongoing costs, along with the need for a single proprietary platform or hub, present significant barriers to the adoption of home energy management systems. These challenges may negatively impact the growth of the global HEMS market during the forecast period.The Home Energy Management Systems (HEMS) market is experiencing significant growth due to increasing concerns over greenhouse gas emissions and the need to reduce energy consumption and costs. The market comprises hardware like intelligent HVAC controllers, programmable communicating thermostats, and lighting controls, as well as software solutions and self-monitoring systems. HEMS utilizes hybrid technology, IoT, machine learning, and advanced data analytics, including artificial intelligence. Key players like Iberdrola are driving innovation through smart building development and smart grid integration. New construction and multi-family residences are prime targets for HEMS implementation. Financial incentives such as rebates, tax credits, and carbon footprint reduction are major drivers. HEMS also supports smart home technologies like Wi-Fi, Ethernet, and wireless protocols. The future of HEMS includes integration with electric vehicles (EVs), advanced central controllers, and cloud deployment for energy management strategies.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

Segment Overview

This home energy management systems market report extensively covers market segmentation by

Component 1.1 Hardware1.2 Software1.3 ServicesProduct 2.1 Lighting controls2.2 Programmable thermostats2.3 Self-monitoring systems2.4 Advanced central controllersGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 Hardware-  The home energy management system market is driven by the growing adoption of advanced hardware components. This hardware includes a hub device that communicates between home events, users, and sometimes utilities or electricity retailers. Additional components, such as smart plugs, light sensors, and temperature sensors, can also be integrated. As communication and sensing technology advances, hardware is becoming a significant market focus. Wired sensor networks, with their increased reliability, longer service lives, and reduced interference, are gaining popularity. The expansion of the hardware segment is expected to boost the home energy management system market, as monitoring and controlling building operations becomes more prevalent. Consequently, the global home energy management systems market is anticipated to grow substantially during the forecast period.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2018 – 2022)

Research Analysis

The Home Energy Management Systems (HEMS) market is a rapidly growing sector in the energy industry, focused on optimizing energy consumption and cost savings in residential and commercial applications. HEMS integrates hardware and software solutions, including thermostat systems, intelligent HVAC controllers, and advanced central controllers, to manage and monitor energy usage in real-time. Wireless protocols technology, hybrid systems, and IoT integration are key trends driving market growth. New construction and deployment type are crucial factors influencing the market’s development. Industry Analysis Reports provide insights into market size, growth, trends, and opportunities. HEMS technology encompasses smart homes, electric vehicles (EVs), and lighting controls, with AI, machine learning, and advanced data analytics enhancing system capabilities. Wi-Fi and Ethernet are common communication protocols in HEMS.

Market Research Overview

The Home Energy Management Systems (HEMS) market is a rapidly growing sector in the energy industry, focused on optimizing energy usage and reducing carbon footprints in residential and commercial buildings. HEMS utilizes advanced central controllers, data analytics, artificial intelligence, and machine learning to analyze electricity usage patterns and provide energy management strategies. Cloud deployment enables remote monitoring and control of power consumption, while IoT technologies such as Ethernet, Wi-Fi, and wireless protocols facilitate seamless communication between devices. HEMS can integrate with various systems, including intelligent HVAC controllers, lighting controls, and EV charging stations. Financial incentives like rebates, tax credits, and industry analysis reports drive market growth. New construction and smart building development are major sectors adopting HEMS, while self-monitoring systems and smart home technologies are gaining popularity in multi-family residences and single-family homes. HEMS also plays a crucial role in the smart grid, enabling efficient energy distribution and reducing greenhouse gas emissions. Hybrid technology, including SunVault Storage and smart meters, further enhances the capabilities of HEMS. Overall, HEMS is a vital component of the transition towards sustainable energy solutions and reducing energy bills.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ComponentHardwareSoftwareServicesProductLighting ControlsProgrammable ThermostatsSelf-monitoring SystemsAdvanced Central ControllersGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/the-home-energy-management-systems-market-is-projected-to-grow-by-usd-1-97-billion-from-2024-2028–with-ai-impacting-trends-and-rising-smart-grid-adoption-driving-revenue—technavio-302255543.html

SOURCE Technavio

Continue Reading

Trending