Amber International Holding Ltd (AMBR) 2022 Q3 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for iClick Interactive Asia Group Limited's 2022 Third Quarter Unaudited Financial Results Conference Call.

女士們、先生們，大家好。感謝您參加愛點擊互動亞洲集團有限公司 2022 年第三季未經審計財務業績電話會議。

(Operator Instructions)

（操作員指令）

I will now turn the call over to your host, Ms. Lisa Li, Investor Relations Director. Lisa, please go ahead.

現在我將電話轉給主持人、投資者關係總監 Lisa Li 女士。麗莎，請繼續。

Hello, everyone, and welcome to 2022 iClick's Third Quarter Unaudited Financial Results Conference Call. The company's results were issued earlier today and are posted online. You can download the earnings press release and sign up for our distribution list by visiting the IR section of our website at ir.i-click.com. In addition, during the call, management will give their prepared remarks in English. During the Q&A session, we will take questions in both English and in Mandarin. -- and a third-party translator will provide subsequent translation. Please note that all translations are for convenience purposes only. In case of any translation discrepancy, management's statement in the original language show (inaudible).

大家好，歡迎參加愛點擊2022年第三季未經審計財務業績電話會議。該公司的業績已於今日早些時候發布並在網上公佈。您可以透過造訪我們網站 ir.i-click.com 的 IR 部分下載收益新聞稿並註冊我們的分發清單。此外，在電話會議中，管理階層將以英語發表準備好的發言。在問答環節，我們將用英語和國語回答問題。 ——並由第三方翻譯提供後續翻譯。請注意，所有翻譯僅是為了方便目的。若出現任何翻譯差異，管理階層的原始聲明應顯示（聽不清楚）。

Jian Tang, T.J., Chairman, Chief Executive Officer and Co-Founder of iClick, will first provide a handlebar review of the 2022 third quarter results and share his thoughts on our strategy going forward. Chief Financial Officer, David Zhang will follow and give us additional insights on the financial results. He will then turn the call back to TJ for closing remarks before the call is open for Q&A. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve certain risks and uncertainties.

愛點擊董事長、執行長兼聯合創始人唐建將首先對 2022 年第三季的業績進行回顧，並分享他對我們未來策略的看法。財務長 David Zhang 將跟進並為我們提供有關財務結果的更多見解。然後，他會將電話轉回給 TJ，讓其在電話會議開始問答環節之前作結束語。在我們繼續之前，請注意，今天的討論將包含根據美國 1995 年私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's 20-F as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that iClick's earnings press release and this conference call includes discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. -- iClick's press release contains a reconciliation of the unaudited non-GAAP measures to the most directly comparable unaudited GAAP measures.

因此，該公司的業績可能與今天表達的觀點有重大差異。關於這些和其他風險和不確定性的更多資訊包含在公司向美國證券交易委員會提交的 20-F 文件中。除適用法律要求外，該公司不承擔更新任何前瞻性聲明的義務。另請注意，iClick 的收益新聞稿和本次電話會議包括未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標的討論。 -- iClick 的新聞稿包含未經審計的非 GAAP 指標與最直接可比較的未經審計的 GAAP 指標的對帳。

I will now turn the call over to our Chairman, Chief Executive Officer and Co-Founder, Jian Tang. TJ, please go ahead.

現在，我將把電話轉給我們的董事長、執行長兼聯合創始人唐建。 TJ，請繼續。

Thank you, Lisa, and welcome to the call, everyone. I will first share our strategy and execution over the past quarter and after how we envision our business in the future. We saw improved performance in the third quarter with 16% sequential growth in Enterprise Solutions revenue and a 3% modest uptick in marketing solutions, combining for an 8% quarter-over-quarter increase in our total revenues for the quarter. These increases were largely driven by the gradual easing of Covid related lockdowns and containment measures and the associated resumption of business and economic activity. We are also pleased to see the recovery for our Enterprise Solutions business. with revenue contribution paying a new record high of 39%.

謝謝你，麗莎，歡迎大家來參加電話會議。我將首先分享我們過去一個季度的策略和執行情況，然後分享我們對未來業務的展望。我們的第三季業績有所改善，企業解決方案營收季增 16%，行銷解決方案營收小幅成長 3%，合計本季總營收季增 8%。這些增長主要是由於與新冠疫情相關的封鎖和遏制措施的逐步放鬆以及隨之而來的商業和經濟活動的恢復。我們也很高興看到我們的企業解決方案業務的復甦。收入貢獻率達39%再創歷史新高。

We remain optimistic about the continued resumption of economic activity and business fundamentals that will drive increased demand for our innovative SaaS+ technologies and services and in turn further sales growth. In addition, we have continued to drive cost optimization across our operations, allowing us to reserve sufficient cash, maintain our core teams and the products intact, strengthen our capabilities in offering valuable services to customers. and whether the macroeconomic headwinds. We believe this positions iClick for continued market rebound as conditions improve. This strategy is central to our future success as we believe our core value proposition rests on our ability to remain a leading innovator in the breadth of value our solutions embody.

我們對經濟活動和商業基本面的持續恢復保持樂觀，這將推動對我們創新的 SaaS+ 技術和服務的需求增加，進而進一步推動銷售成長。此外，我們持續推動整個營運的成本優化，使我們能夠儲備充足的現金，維護核心團隊和產品的完整，並增強我們為客戶提供有價值服務的能力。以及宏觀經濟是否存在逆風。我們相信，隨著條件改善，這將為 iClick 的市場持續反彈奠定基礎。這項策略對於我們未來的成功至關重要，因為我們相信，我們的核心價值主張取決於我們在解決方案所體現的價值廣度方面保持領先創新的能力。

We achieved notable solution implementations and rollouts during the quarter that drove exceptional value in existing clients to accomplish the diverse goals. For example, we collaborated with JD technology to build a full stack private domain e-commerce solution based upon iClick's Changxun and the Xindong Technology Cloud service with the integration of indo-alliance commodity promotion solution, or CPS and JD Kepler supply chain services. This integrated offering aims to empower retailers in the cosmetics, FMCG and affordable luxury apparel industries through all ecosystem, smart retail SaaS solutions. We also were recognized through numerous industry awards. For example, we scoped the first third-party service provider of the first half of 2022 by a lighting award. We are honored by the strong industry resonation, we continue to receive and strive to remain a leader across our industry-wide solution mix.

我們在本季度實現了顯著的解決方案實施和推出，為現有客戶帶來了卓越的價值，並實現了多樣化的目標。例如我們和京東科技合作，基於愛點暢迅和芯動科技雲端服務，結合印聯商品推廣解決方案，也就是CPS和京東開普勒供應鏈服務，打造全端私域電商解決方案。該綜合產品旨在透過全生態系統、智慧零售 SaaS 解決方案為化妝品、快速消費品和平價奢侈服裝行業的零售商提供支援。我們也獲得了許多行業獎項的認可。例如，我們透過照明獎確定了2022年上半年第一家第三方服務提供者。我們很榮幸獲得業界的強烈共鳴，我們將繼續接受並努力保持在整個行業解決方案組合中的領先地位。

This concludes my opening remarks, and I would now like to turn the call over to our CFO, David Zhang to discuss our third quarter financial results. David, please go ahead.

我的開場白到此結束，現在我想將電話轉給我們的財務長 David Zhang 討論我們的第三季財務業績。大衛，請繼續。

Thank you, T.J.. Hello, everyone. I will share our key financial results for third quarter of 2022 compared to the same period of 2021. Revenue for the third quarter of 2022 was USD 41 million, decreased by 53% year-over-year. Looking at the individual business segments. Revenue from marketing solutions was USD 25 million, decreased by 52% compared with the USD 66.6 million for third quarter of 2021 as a result of our strategic shift away from some high-risk advertising business and the overall advertising market slowdown in China.

謝謝你，T.J。我將分享我們 2022 年第三季與 2021 年同期相比的關鍵財務表現。看看各個業務部門。行銷解決方案營收為 2,500 萬美元，較 2021 年第三季的 6,660 萬美元下降 52%，原因是我們的策略轉向放棄部分高風險廣告業務，且中國整體廣告市場放緩。

Revenue from our Enterprise Solutions was USD 13 million, decreased by 21% compared with USD 21.3 million in third quarter of 2021, mainly due to the challenges from pandemic and control management, which affected the progress of our new clients onboarding and solutions implementation in 2022. Gross profit for the third quarter of 2022 was USD 9.2 million compared with $21.7 million for the third quarter of 2021, in line with the decrease of revenue. Total operating expenses were $20.8 million for the third quarter of 2022 compared with $24.1 million for the third quarter of 2021. The changes were primarily due to a decrease in share-based compensation, staff costs and promotional expenses.

企業解決方案營收為 1,300 萬美元，較 2021 年第三季的 2,130 萬美元下降 21%，主要由於疫情及管控挑戰，影響了 2022 年新客戶入職及解決方案實施的進度。 2022 年第三季總營運費用為 2,080 萬美元，而 2021 年第三季為 2,410 萬美元。

Goodwill impairment of USD 3.7 million was recorded for the third quarter of 2022 for Marketing Solutions business. This partial noncash impairment charge representing a shortfall between the carrying value and the estimated fair value of this reporting unit as of September 30, 2022, due to the slowdown of advertising industry. Net loss totaled USD 19.4 million for the third quarter of 2022 compared with USD 2.6 million for the third quarter of 2021, mainly resulted from operating loss of USD 11.6 million excluded impairment of USD 3.7 million and impairment of equity investments of USD 3.4 million.

2022 年第三季行銷解決方案業務的商譽減損金額為 370 萬美元。此部分非現金減損費用代表由於廣告業放緩導致截至 2022 年 9 月 30 日該報告單位的帳面價值與估計公允價值之間的差額。 2022 年第三季淨虧損總計 1,940 萬美元，而 2021 年第三季為 260 萬美元，主要由於營業虧損 1,160 萬美元（不包括 370 萬美元的減損準備和 340 萬美元的股權投資減損準備）。

As of September 30, 2022, the company had cash and cash equivalents, time deposits and restricted cash of USD 99.9 million compared with USD 88.7 million as of December 31, 2021. For the non-GAAP measures, adjusted EBITDA for third quarter of 2022 was a loss of USD 8.5 million compared with earnings of USD 3.6 million for third quarter of 2021. Adjusted net loss for third quarter of 2022 was USD 10.2 million compared with adjusted net income of $0.8 million in the third quarter of 2021. Whilst billing was $61.7 million for the third quarter of 2020 compared with USD 195.5 million for the third quarter of 2021.

截至 2022 年 9 月 30 日，公司擁有現金和現金等價物、定期存款和受限現金為 9990 萬美元，而截至 2021 年 12 月 31 日為 8870 萬美元。淨虧損為 1,020 萬美元，而 2021 年第三季調整後的淨收入為 80 萬美元。

For further information, please see more details in the press release we issued today. With that, I'll now turn the call back to TJ for closing remarks. Thank you...

欲了解更多信息，請參閱我們今天發布的新聞稿中的更多詳細信息。說完這些，我現在將電話轉回給 TJ，請他作結束語。謝謝...

Thank you, David. While Chinese government's recent announcements suggest signs of easing quality requirements and the travel restrictions that might bode well for economic activities, supply chain disruptions, intermittent lockdowns and the geopolitical conflict around the world may still adversely impact consumer sentiment, weigh on company's operations and further curtail business performance in the short term. We are Nevertheless, cautiously optimistic and expect recovering consumer sentiment to be greatly beneficial to the overall economy as well as our consumer-centric total solutions as conditions improve.

謝謝你，大衛。儘管中國政府最近宣布的措施有放寬品質要求和旅行限制的跡象，這可能對經濟活動有利，但供應鏈中斷、間歇性封鎖和世界各地的地緣政治衝突仍可能對消費者情緒產生不利影響，給公司營運帶來壓力，並在短期內進一步削弱業務表現。儘管如此，我們仍持謹慎樂觀的態度，預計隨著條件改善，消費者信心的恢復將極大地有利於整體經濟以及我們以消費者為中心的整體解決方案。

In the longer term, we remain highly confident in the intact megatrend of digital transformation in China, supporting our strong conviction is the steadfast commitment from the Chinese government, the 20th Party Congress report explicitly indicated the importance and the acceleration of digital economy development. Therefore, iClick will continue implementing its SaaS+ strategy by further upgrading the product offerings of in-price solutions and enhancing our top-tier clients servicing capability so that we can better seize the enormous opportunities ahead and deliver sustainable growth for the future. Before I end my closing remarks, I would like to provide a recap of how our execution in 2022 has been entered by the strategy we defined at the end of last year.

從長遠來看，我們對中國數位轉型的大趨勢仍然充滿信心，支持我們堅定信念的是中國政府的堅定承諾，黨的二十大報告明確指出了數位經濟發展的重要性和加速步伐。因此，愛點擊將繼續深入實施SaaS+策略，進一步升級價格解決方案的產品線，提升對頂級客戶的服務能力，以更好地掌握未來的巨大機遇，實現未來的永續成長。在結束我的閉幕詞之前，我想回顧一下我們在去年年底制定的策略在 2022 年的執行情況。

Even though government regulations, macro environment and geopolitical conflicts have constitute the uncertain operating environment for us since the second half of last year, we have remained resolute in ensuring that we maintain sufficient cash and resources to help us withstand these micro shocks. Our strategy to wind down high operating cash. lower margin and the higher risk business within our Marketing Solutions segment is the basis of this approach. Consequently, our cash and cash equivalents have reached almost 100 million as of the end of September compared with approximately 89 million at the end of 2021 as well as a reduction in bank borrowings. In addition, in support of the strong long-term prospects of the digital transformation trend in China, we have continued to invest in our higher-margin enterprise solutions, which positions iClick will to capitalize on rebounding economic activity and improved business sentiment and the associated recovery in client demand.

儘管自去年下半年以來，政府法規、宏觀環境和地緣政治衝突為我們帶來了不確定的經營環境，但我們始終堅定地確保維持充足的現金和資源，以幫助我們抵禦這些微觀衝擊。我們的策略是減少高額營運現金。我們行銷解決方案部門中的較低利潤和較高風險業務是這種方法的基礎。因此，截至 9 月底，我們的現金和現金等價物已達到近 1 億，而 2021 年底約為 8,900 萬美元，銀行借款也有所減少。此外，為支持中國數位轉型趨勢的長期強勁前景，我們繼續投資於利潤率更高的企業解決方案，這使愛點擊能夠利用經濟活動的反彈、商業情緒的改善以及相關的客戶需求的復甦。

Thus, our R&D expenditure has remained relatively constant. This is core to our long-term strategy as we believe the investment is what fundamentally will drive our future growth momentum. Lastly, we have in parallel been streamlining our operations on driving cost optimization, reducing expenses in a number of areas. In sum, we are proud of our solid execution with a clear vision to carry iClick forward through this volatile periods. With that, I wish to acknowledge and thank our clients, partners, shareholders and all other stakeholders for our continued support. And of course, all our iClickers who have been so dedicated to the work through thick and thin. Backed by our sound management and clear strategies, we believe we will be able to deliver better results and further establish ourselves in the digital transformation market. Thank you all, again, for participating in today's conference call and for your continued support.

因此，我們的研發支出保持相對穩定。這是我們長期策略的核心，因為我們相信投資才是推動我們未來成長動能的根本因素。最後，我們同時精簡營運以推動成本優化，從而削減多個領域的開支。總而言之，我們對自己穩健的執行力感到自豪，並有清晰的願景推動 iClick 度過這段動盪時期。在此，我要感謝我們的客戶、合作夥伴、股東和所有其他利害關係人對我們持續的支持。當然，還有我們所有的 iClickers，他們無論順境或逆境都致力於工作。我們相信，在完善的管理和清晰的策略支援下，我們一定能夠取得更好的成績，並在數位轉型市場中進一步站穩腳步。再次感謝大家參加今天的電話會議並感謝你們一直以來的支持。

This concludes my remarks, and we will now open the floor for questions. Operator, please go ahead.

我的發言到此結束，現在請大家提問。接線員，請繼續。

Thank you.

謝謝。

(Operator Instructions)

（操作員指令）

And our first question will come from Nelson Cheung of Citi.

我們的第一個問題來自花旗的 Nelson Cheung。

(foreign language) So let me translate myself. Thank you everyone for taking my questions - my first question is regarding the ES business. Wondering what would be the impact of Covid on the project implementation of the business in fourth quarter and next year? And my second question is related to the advertising outlook into fourth quarter and next year as well. Thank you.

（外語）所以讓我自己翻譯一下。感謝大家回答我的問題—我的第一個問題是關於 ES 業務的。想知道Covid會對第四季和明年業務的專案實施產生什麼影響？我的第二個問題與第四季和明年的廣告前景有關。謝謝。

(foreign language)

（外語）

[Interpreted] Thank you for your question. This is T.J. If I understand correctly, your questions are about the outlook or trends of U.S. and MX business. Well, compared with Q2, Q3 saw performance in our businesses. I think the reasons are very clear. In the second quarter, due to the Covid, a lot of cities were under locked down. And in Q3, these Covid related control measures were eased. And however, the trend -- the future trends for the Covid related control measures still remains unclear. And for therefore, many industries, including many of our client's industries are still prudent in making the investment. Overall speaking, we've seen a slow recovery, but not very strong.

[翻譯]感謝您的提問。這是 T.J。如果我理解正確的話，您的問題是關於美國和墨西哥業務的前景或趨勢。嗯，與第二季相比，第三季我們的業務表現不錯。我認為原因非常清楚。第二季度，由於疫情，許多城市被封鎖。在第三季度，這些與新冠疫情相關的控制措施已經有所放鬆。然而，與新冠疫情相關的控制措施的未來趨勢仍然不明朗。因此，許多行業，包括我們許多客戶的行業，在投資方面仍然持謹慎態度。總體而言，我們看到了緩慢的復甦，但並不是很強勁。

(foreign language)

（外語）

To elaborate. Relatively speaking, the business has performed better because the demand for ES business is always there. And in our ES business, we help and meet the digitalization needs of our customers by providing them better opportunities to interact with their consumers and manage their digital assets better. So there is always a strong demand for our ES businesses. Therefore, the pipeline is quite good. However, due to the Covid related control measures, some clients' demands have been put off. because our -- it usually takes a rather long time for our clients to make a decision about working with us and onboarding and then solution implementation. And the lockdown and other control measures have actually delayed the entire process. And therefore -- and also during the onboarding of new clients, it requires a lot of interaction with our clients. But overall speaking, our Q3 performance is better than Q2.

詳細說明。相對來說，該業務表現更好，因為ES業務的需求一直存在。在我們的 ES 業務中，我們透過為客戶提供更好的與消費者互動和更好地管理數位資產的機會來幫助和滿足客戶的數位化需求。因此我們的 ES 業務一直有著強勁的需求。因此，該管道非常好。然而，由於與新冠疫情相關的管控措施，一些客戶的需求被推遲了。因為我們的客戶通常需要相當長的時間來決定是否與我們合作、加入並實施解決方案。而封鎖和其他控制措施實際上已經推遲了整個進程。因此，在接納新客戶期間，我們需要與客戶進行大量互動。但總體來說，我們第三季的表現比第二季好。

(foreign language)

（外語）

Well, as to the Marketing Solutions business or the entire advertising business, we've seen some sign of recovery in Q3, but not very strong. Actually, this year, the entire advertising industry is weak. Since last year, many industries have been adversely affected. And in particular, some industries such as the education or the gaming industries just disappear because of the tightening of government regulations -- and due to the logistics hiccup facing e-commerce companies, even some big brands have started to adjust their advertising budget. So (inaudible) the Marketing Solutions business remained weak this year. And that actually is in line with our strategic decision to wind down some hydro commodity solutions business. And we can say that we have forecasted this trend and made our choice early this year.

嗯，就行銷解決方案業務或整個廣告業務而言，我們在第三季看到了一些復甦的跡象，但不是很強勁。其實今年整個廣告業都很疲軟。自去年以來，許多行業都受到了不利影響。特別是，一些行業，例如教育或遊戲行業，由於政府監管的收緊而消失——而且由於電子商務公司面臨的物流問題，甚至一些大品牌也開始調整廣告預算。因此（聽不清楚）今年的行銷解決方案業務仍然疲軟。這實際上符合我們逐步淘汰一些水力發電商品解決方案業務的策略決策。我們可以這樣說，我們在今年初就已經預見了這個趨勢並做出了選擇。

(foreign language)

（外語）

This is my answer to your question, Thank you.

這是我對你問題的回答，謝謝。

The next question comes from Thomas Chong of Jefferies.

下一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) Thank you management for taking my questions. so I have 2 questions. My first question is for the Enterprise Solution business. So how's the retention rate for new and existing clients and house our client acquisition strategy so far? And my second question is also for the Enterprise Solutions business and how should we view the competition landscape and our competition advantages. Thanks.

（外語）感謝管理層回答我的問題。所以我有兩個問題。我的第一個問題是關於企業解決方案業務的。那麼到目前為止，新舊客戶的保留率以及我們的客戶獲取策略如何？我的第二個問題也是關於企業解決方案業務的，我們應該如何看待競爭格局和我們的競爭優勢。謝謝。

(foreign language)

（外語）

[Interpreted] Well, this is David. Let me first take your question about retention. Compared with Q2, the Q3 saw a good retention rate. You can see that in terms of the customer number, the retention rate was 65%, and dollar amount, the retention rate was 95%, a quite high level, and many existing customers have contributed more to ourselves. And as to the question about competitive landscape, I would like to invite T.J. to answer your question.

[翻譯] 嗯，這是大衛。首先讓我回答您關於保留的問題。與第二季相比，第三季的留存率良好。你可以看到從客戶數量來看，留存率是65%，金額來看，留存率是95%，這是一個相當高的水平，而且很多老客戶給我們自己貢獻了比較多。關於競爭格局的問題，我想邀請 T.J.回答你的問題。

(foreign language)

（外語）

[Interpreted] Okay. Let me answer your second question about competition landscape. I think in China, the digitalization process is still at its early stage. And there are a lot of players in this track, including SaaS providers, some giant companies and also service providers. And these companies have different business models and customer bases. I think the next 3 to 5 years will be key for these companies to build up their competitive advantages. And for us, our advantage lies with the fact that we have accumulated great expertise in serving medium- to large-sized customers through our MS business. And our SaaS+ Act product plus service model is very helpful for us to serve this kind of customers. And this is the competitive edge that we have been built up over the past 2 to 3 years. And for me, 2B business is very different from to 2C business. 2B business is not a market for minutes and the digitalization market in China is big enough to accommodate more big players. And that's why we think that our SaaS + X model will have a big room to develop in the future.

[翻譯] 好的。讓我回答你關於競爭格局的第二個問題。我認為在中國，數位化進程仍處於早期階段。這個賽道的參與者非常多，有SaaS供應商，一些巨頭公司，也有服務提供者。這些公司有不同的商業模式和客戶群。我認為未來3到5年將是這些公司建立競爭優勢的關鍵。對我們來說，我們的優勢在於透過我們的MS業務累積了服務中型到大型客戶的豐富專業知識。而我們的SaaS+Act產品加服務模式對於我們服務這類客戶非常有幫助。這是我們在過去2-3年建立的競爭優勢。對我來說，2B業務與2C業務非常不同。 2B業務不是幾分鐘的市場，中國的數位化市場足夠大，可以容納更多的大玩家。所以我們認為我們的SaaS+X模式未來會有很大的發展空間。

Next question comes from Brian Kinstlinger of Alliance Global Partners.

下一個問題來自 Alliance Global Partners 的 Brian Kinstlinger。

My questions are financial related. The first one is DSO has dramatically improved. What has led to this much better collections? And can you continue to improve DSO, which is still quite high? And then second, can you discuss why the gross margin in the third quarter is lower than the second quarter. Your revenue in both segments is increasing. You have a much better mix of the higher-margin enterprise revenue. So I'm trying to understand when we'll start to see the margin recover.

我的問題與財務有關。第一個是DSO有了顯著的提高。是什麼因素導致了這些收藏品的品質如此高？而且您能繼續提高目前仍然很高的 DSO 嗎？第二，您能討論為什麼第三季的毛利率低於第二季嗎？您在兩個領域的收入都在增加。您擁有更高利潤率的企業收入的更好組合。所以我想知道什麼時候我們才能開始看到利潤率恢復。

(foreign language)

（外語）

Hello Brian,

你好，Brian，

(foreign language)

（外語）

[Interpeted] Let me take up 2 of your questions. The first question, in Q3, our account receivable turnover is around 120 days compared with Q2, it's already like 30 to 40 days improvement. And as to Q2 due to the Covid related control measures, a lot of the cities were locked down, and that's why the conreceivable days has increased. But Q3, we've seen some improvement -- and we have putting a lot of efforts to improve the collection of these receivables. And we also have been maintaining good relationships with valuable customers, trying to increase their contribution to our revenue. And the second question about gross profit margin. And the gross profit margin has decreased in Q3 because we have provided more enterprise solutions services to existing customers in order to retain these valuable customers. when the economic condition is for, these customers usually have a higher bargaining power. Therefore, we offer some discounts to them. As to new clients, they may not contribute a lot to our Q3 revenue is our strategy is to retain those valuable customers so that in the future, we'll have the chance to increase their contribution to our revenue. Thank you.

[轉述] 讓我回答您的兩個問題。第一個問題，第三季我們的應收帳款週轉率大概是120天，相較於第二季已經提高了30到40天。而第二季由於新冠疫情相關的管控措施，許多城市被封鎖，所以應收帳款天數增加。但在第三季度，我們看到了一些改善——並且我們付出了很多努力來改善這些應收帳款的收集。我們也一直與有價值的客戶保持良好的關係，努力增加他們對收入的貢獻。第二個問題是關於毛利率。而第三季的毛利率有所下降，是因為我們為了留住這些寶貴的客戶，為現有客戶提供了更多的企業解決方案服務。當經濟條件允許時，這些客戶通常具有較高的議價能力。因此，我們給他們一些折扣。至於新客戶，他們可能不會為我們第三季的收入貢獻很多，我們的策略是留住那些有價值的客戶，以便將來我們有機會增加他們對我們收入的貢獻。謝謝。

There are no further questions at this time. I will now hand the call back to Lisa Li for closing remarks.

目前沒有其他問題。現在我將把電話交還給 Lisa Li 做結束語。

Thank you once again for joining us today. If you have any further questions, please feel free to contact iClick's Investor Relations department through the contact information provided on our website. Thank you...

再次感謝您今天的參與。如果您還有任何其他問題，請隨時透過我們網站上提供的聯絡資訊聯絡愛點擊的投資者關係部門。謝謝...

This concludes the conference call. You may now disconnect your lines. Thank you.

本次電話會議到此結束。現在您可以斷開線路了。謝謝。