(TIO) 2021 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good morning and welcome to the MICT third quarter 2021 financial results and corporate update conference call. (Operator Instructions) Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call through February 15, 2022.

女士們，先生們，謝謝你們的支持。早上好，歡迎來到 MICT 2021 年第三季度財務業績和公司更新電話會議。 （操作員說明）本次電話會議的參與者請注意，本次電話會議的音頻將通過互聯網進行現場直播，並且還會被錄製以供播放。在電話會議結束後約一小時至 2022 年 2 月 15 日，將提供電話會議的網絡直播重播。

I would now like to turn the call over to Scott Gordon, President of CORE IR, the company's Investor Relations firm. Please go ahead, Sir.

我現在想把電話轉給公司投資者關係公司 CORE IR 的總裁斯科特戈登。請繼續，先生。

Thank you, Tom. Good morning, everyone, and thank you for joining us for the MICT third quarter 2021 financial results and corporate update conference call. Joining us today from MICT are Darren Mercer, Chief Executive Officer of MICT and Moran Amran, Controller.

謝謝你，湯姆。大家早上好，感謝您加入我們參加 MICT 2021 年第三季度財務業績和公司更新電話會議。今天從 MICT 加入我們的是 MICT 首席執行官 Darren Mercer 和財務總監 Moran Amran。

During this call, management will be making forward-looking statements, including statements that address MICT's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in MICT's most recently filed annual reports on Form 10-K, quarterly report on Form 10-Q, and Form 8-K filed with the SEC today and MICT's press release that accompanies this call, particularly the cautionary statements in it.

在此電話會議期間，管理層將發表前瞻性陳述，包括闡述 MICT 對未來業績或運營結果的預期的陳述。前瞻性陳述涉及可能導致實際結果與這些陳述存在重大差異的風險和其他因素。有關這些風險的更多信息，請參閱 MICT 最近提交的 10-K 表年度報告、10-Q 表季度報告和今天向美國證券交易委員會提交的 8-K 表中描述的風險因素，以及 MICT 的新聞稿伴隨著這一呼籲，特別是其中的警告聲明。

The content of this call contains time-sensitive information that is accurate only as of today, November 15, 2021. Except as required by law, MICT disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

本次電話會議的內容包含時效性信息，截至今天，即 2021 年 11 月 15 日，這些信息都是準確的。除法律要求外，MICT 不承擔任何公開更新或修改任何信息以反映本次電話會議後發生的事件或情況的義務.

It is now my pleasure to turn the call over to Darren Mercer, Chief Executive Officer. Darren, please go ahead.

現在我很高興將電話轉交給首席執行官 Darren Mercer。達倫，請繼續。

Thank you, Scott, and thank you all for joining us on the call and the webcast today. We continue to deliver strong growth with third-quarter revenue up more than 50% over the second quarter of 2021. We're extremely pleased with the success of our insurance business, where our revenues for this third quarter were nearly equivalent to those of the entire first half of 2021.

謝謝斯科特，也感謝大家今天加入我們的電話會議和網絡廣播。我們繼續實現強勁增長，第三季度收入比 2021 年第二季度增長超過 50%。我們對保險業務的成功感到非常滿意，我們第三季度的收入幾乎與整個 2021 年上半年。

Our third quarter revenues equate to a run rate of $75 million per annum, which is primarily from our B2B insurance business. To put our growth into context, our insurance vertical has generated revenue of $18.5 million, representing growth of more than 50% over Q2, which in turn was more than 50% up on Q1. We are particularly excited by this performance as we are still in the very early stages of the insurance business developments.

我們第三季度的收入相當於每年 7500 萬美元的運行率，這主要來自我們的 B2B 保險業務。考慮到我們的增長，我們的垂直保險業務已經產生了 1850 萬美元的收入，比第二季度增長了 50% 以上，而這又比第一季度增長了 50% 以上。我們對這一表現感到特別興奮，因為我們仍處於保險業務發展的早期階段。

There is a huge potential for continued strong growth underpinned by the nationwide license with China that we acquired in February and enhanced by our recent acquisition of licenses for 130 major cities and provinces covering most of developed China. This valuable portfolio of licenses allows us to process insurance business on a nearly nationwide basis. And as such, we are well positioned to develop relationships into B2B2C partnerships, which will be followed by expansion into direct B2C sales channels, thus enabling us to cross-sell a wide range of products with the aim of driving growth and generating higher margins.

我們在 2 月份獲得的中國全國牌照以及我們最近獲得覆蓋中國大部分發達地區的 130 個主要城市和省份的牌照加強了持續強勁增長的巨大潛力。這一寶貴的許可組合使我們能夠在幾乎全國范圍內處理保險業務。因此，我們有能力將關係發展為 B2B2C 合作夥伴關係，隨後將擴展到直接 B2C 銷售渠道，從而使我們能夠交叉銷售廣泛的產品，以推動增長和產生更高的利潤。

In addition, we are in ongoing discussions with a number of nationwide organizations that, if successful, will enable us to launch several more specialty insurance products to be offered on a nationwide basis.. Whilst we expect recent pressures on commission levels in the automotive insurance sector to impact on our short-term rates of growth, this should largely be offset by the strong underlying performance of our platform and our revenue growth from other insurance products.

此外，我們正在與一些全國性組織進行討論，如果成功，將使我們能夠在全國范圍內推出更多的專業保險產品。雖然我們預計最近汽車保險的佣金水平會面臨壓力行業對我們的短期增長率的影響，這應該在很大程度上被我們平台的強勁基礎性能和我們來自其他保險產品的收入增長所抵消。

The combination of our rapidly expanding insuree database, which is currently estimated to be more than 0.5 million, together with a strong portfolio of licenses with nationwide coverage and a growing range of insurance products places us in an exceptionally strong position and allows us to benefit from the considerable strategic advantages that we have gained. This as well as our migration towards higher margin products sold through significantly higher margin channels gives the Board considerable confidence as we move towards year end and into 2022.

我們迅速擴大的被保險人數據庫（目前估計超過 50 萬）與覆蓋全國的強大許可組合和不斷增加的保險產品相結合，使我們處於異常強大的地位，並使我們能夠從中受益我們獲得的相當大的戰略優勢。隨著我們邁向年底和進入 2022 年，這一點以及我們轉向通過利潤率高得多的渠道銷售的高利潤率產品給董事會帶來了相當大的信心。

Moving on to our stock trading platform, on September 15, we successfully launched our mobile stock trading app on our proprietary Magpie Securities platform, which was the culmination of nearly a year of intensive technological development. We have managed our rollout plan carefully with an initial focus on the test-and-learn marketing strategy, allowing us to obtain valuable data and customer feedback so that we could make appropriate improvements and refinements.

繼續我們的股票交易平台，9 月 15 日，我們在我們專有的喜鵲證券平台上成功推出了我們的移動股票交易應用程序，這是近一年密集技術開發的結晶。我們仔細管理了我們的推出計劃，最初的重點是測試和學習營銷策略，使我們能夠獲得有價值的數據和客戶反饋，以便我們能夠進行適當的改進和改進。

Notwithstanding the narrow scope of our initial marketing plan, the number of new client registrations and app downloads to date has been extremely promising. Furthermore, the technological performance and functionality of the Magpie app has been enhanced considerably since launch as we work towards our aim of delivering a superior market-leading product.

儘管我們最初的營銷計劃範圍狹窄，但迄今為止新客戶註冊和應用程序下載的數量非常可觀。此外，隨著我們致力於提供卓越的市場領先產品的目標，Magpie 應用程序的技術性能和功能自發布以來得到了顯著增強。

Having observed the market progress achieved to date, we believe it is now the right time for significant marketing push as we look to gain a sizable market share. In dealing with the market speculation surrounding the introduction of new regulation with regard to onboarding clients and residents in mainland China, it is important to note that Magpie has always been fully compliant with all applicable rules and regulations. And as such, we believe these latest changes are not of concern.

在觀察了迄今為止取得的市場進展後，我們認為現在是進行重大營銷推廣的合適時機，因為我們希望獲得可觀的市場份額。在應對圍繞中國大陸入職客戶和居民引入新規定的市場猜測時，重要的是要注意喜鵲一直完全遵守所有適用的規則和規定。因此，我們認為這些最新變化並不令人擔憂。

That said, our app's upcoming ability to onboard overseas clients with effect from end of November fits with our strategy to target Chinese diaspora initially in Southeast Asia and before then expanding into other territories. To that end, we have been exploring opportunities to acquire the necessary licenses to operate in relevant jurisdictions and we will keep the market appraised as and when there are meaningful developments.

也就是說，我們的應用程序即將於 11 月底開始吸引海外客戶，這符合我們的戰略，即首先針對東南亞的華人僑民，然後再擴展到其他地區。為此，我們一直在探索獲得在相關司法管轄區運營的必要許可的機會，我們將在出現有意義的發展時保持對市場的評估。

With regards to our commodities platform, which, as we have previously disclosed, has been ready to launch since early September, we have signed a tripartite agreement to launch in partnership with one of China's leading commodity exchanges. As a result of the exceptional volatility in oil and gas prices since September, together with the Chinese government's introduction of a new regulation, which is in progress, our partners to whom we are reliant wishes to seek clarification around this regulation. In this regard, both we and our partners are currently monitoring the situation, awaiting the finalization of the regulatory framework and improvements in market conditions prior to proceeding with the launch.

關於我們的商品平台，正如我們之前披露的那樣，該平台已準備好自 9 月初開始推出，我們已與中國領先的商品交易所之一簽署了合作推出的三方協議。由於自 9 月以來石油和天然氣價格異常波動，加上中國政府正在引入新法規，我們所依賴的合作夥伴希望就此法規尋求澄清。在這方面，我們和我們的合作夥伴目前都在監測情況，等待監管框架的最終確定和市場條件的改善，然後再繼續推出。

It is important to note, however, that none of our published financial forecasts include revenue from our commodity business and therefore, any elongation of timelines does not adversely impact either the revenues or earnings that is contained in such projections.

然而，值得注意的是，我們公佈的財務預測中沒有一個包括我們商品業務的收入，因此，任何時間線的延長都不會對此類預測中包含的收入或收益產生不利影響。

Moving on, I am pleased to say that we continue to have a strong balance sheet with around $105 million of cash as of the end of Q3, which provides the resources needed to grow our different verticals and execute on our business plan. Our strong balance sheet will also assist us in making strategic acquisitions as and when we identify suitable value accretive opportunities.

繼續前進，我很高興地說，截至第三季度末，我們的資產負債表仍然強勁，現金約為 1.05 億美元，這為我們發展不同的垂直行業和執行我們的業務計劃提供了所需的資源。我們強大的資產負債表也將幫助我們在確定合適的增值機會時進行戰略收購。

And finally, we recently filed a preliminary proxy statement that included a proposal to amend our charter to expand our authorized share count from 250 million shares to 425 million shares. I would like to take this opportunity to urge our shareholders to approve this measure as it is key and a key component to our growth strategy. While we have, as I mentioned, a very strong cash position, a strong share count is equally as essential to a company's growth to conduct acquisitions more easily, many of which necessarily include some components of the transaction and stock.

最後，我們最近提交了一份初步委託書，其中包括一項修改章程的提議，將我們的授權股份數量從 2.5 億股擴大到 4.25 億股。我想藉此機會敦促我們的股東批准這項措施，因為它是我們增長戰略的關鍵和關鍵組成部分。正如我所提到的，雖然我們擁有非常強大的現金狀況，但強大的股票數量對於公司的增長同樣重要，以便更容易地進行收購，其中許多收購必然包括交易和股票的某些組成部分。

Rather than viewing this increased share count as a potential dilution, I believe it best be viewed as a mechanism by which we can better provide our current shareholders with increased value as it enables us to more easily grow as we seek new acquisition opportunities to strategically expand our fintech offerings. It is for this reason that I recommend you approve this motion in the proxy. And I thank you for your ongoing support of our company's growth.

與其將增加的股份數量視為潛在的稀釋，我認為最好將其視為一種機制，通過這種機制我們可以更好地為現有股東提供更高的價值，因為它使我們能夠在尋求新的收購機會以進行戰略擴張時更輕鬆地實現增長我們的金融科技產品。出於這個原因，我建議您在代理中批准此議案。我感謝您一直以來對我們公司發展的支持。

I would now like to turn the call over to Moran Amran for a financial review of the quarter. Thank you.

我現在想將電話轉給莫蘭·阿姆蘭 (Moran Amran)，以對本季度進行財務審查。謝謝。

Thank you, Darren. Revenue in the third quarter was $18.5 million versus $12.3 million in the previous quarter and zero during the quarter ended September 30, 2020. The quarter-on-quarter increase over the second quarter was primarily attributed to continued growth in B2B insurances, which grew by more than 50%.

謝謝你，達倫。第三季度收入為 1850 萬美元，而上一季度為 1230 萬美元，截至 2020 年 9 月 30 日的季度收入為零。第二季度環比增長主要歸因於 B2B 保險業務的持續增長，增長了超過 50%。

Gross profit in the third quarter 2021 was $2.7 million, up from $0.7 million in the prior quarter. Gross margin improved significantly in the third quarter to 14.8% from 5.4% in the second quarter. And the company reduced its reliance on commission rebates and price incentives to attract new brokers and customers. R&D expenditure in the third quarter was $0.40 million compared to $0.39 million in the second quarter as the company continued to invest in the development of its technology.

2021 年第三季度的毛利潤為 270 萬美元，高於上一季度的 70 萬美元。第三季度的毛利率從第二季度的 5.4% 顯著提高至 14.8%。該公司減少了對佣金回扣和價格激勵的依賴，以吸引新的經紀人和客戶。由於公司繼續投資於其技術開發，第三季度的研發支出為 40 萬美元，而第二季度為 39 萬美元。

Selling and marketing expense amounted to $1.5 million in the third quarter, up marginally from $1.4 million in the second quarter. General and administrative expense fell significantly in the third quarter to $6.6 million from $14.9 million in the second quarter. The third quarter general and administrative expense included more than $1.6 million of non-cash costs. Net loss for the third quarter was $5.3 million representing a significant improvement over the net loss for the second quarter of $18.4 million. Finally, as of September 30, 2021, the cash position was approximately $105 million.

第三季度的銷售和營銷費用為 150 萬美元，略高於第二季度的 140 萬美元。第三季度的一般和行政費用從第二季度的 1490 萬美元大幅下降至 660 萬美元。第三季度的一般和行政費用包括超過 160 萬美元的非現金成本。第三季度淨虧損為 530 萬美元，較第二季度 1840 萬美元的淨虧損有顯著改善。最後，截至 2021 年 9 月 30 日，現金頭寸約為 1.05 億美元。

Back to you, Darren.

回到你身邊，達倫。

Thank you, Moran. We are very proud and excited by the progress we have made in Q3. But the foundations and key ingredients for our continued growth have been significantly strengthened. Both our insurance and stock trading business are in the nascent stage of development, but already achieving impressive growth in customer registrations and the company as a whole is generating substantial revenues.

謝謝你，莫蘭。我們對第三季度取得的進展感到非常自豪和興奮。但我們持續增長的基礎和關鍵因素已得到顯著加強。我們的保險和股票交易業務都處於發展的初級階段，但客戶註冊量已經實現了可觀的增長，整個公司正在產生可觀的收入。

Whilst we will continue to maintain watch on market conditions for the launch of the commodity platform, our drive to achieve material growth across all of our fintech verticals, both organically and by making strategic acquisitions gives us huge confidence that we are well positioned to deliver a considerable uplift in shareholder value over the coming quarters and beyond. Continued strength of our balance sheet with $105 million in cash will allow us to continue to execute on our growth strategy.

雖然我們將繼續關注商品平台推出的市場狀況，但我們通過有機和戰略收購實現所有金融科技垂直領域物質增長的動力使我們充滿信心，我們有能力提供未來幾個季度及以後股東價值的大幅提升。我們擁有 1.05 億美元現金的資產負債表持續強勁，這將使我們能夠繼續執行我們的增長戰略。

That said, we strongly encourage our shareholders to vote in favor of the motion to expand our authorized share count from 250 million to 425 million shares, thereby further strengthening our position in terms of making future acquisitions. I mentioned last quarter that we are just getting started and now that our licenses are in place on the insurance business and the stock trading app is launched, I truly believe we will continue to see significant growth.

也就是說，我們強烈鼓勵我們的股東投票贊成將我們的授權股份數量從 2.5 億股擴大到 4.25 億股的動議，從而進一步加強我們在未來收購方面的地位。我在上個季度提到我們才剛剛起步，現在我們的保險業務許可證已經到位並且股票交易應用程序已啟動，我真的相信我們將繼續看到顯著增長。

And I hope you share my excitement regarding the future of MICT. We thank you for your continued support. And we look forward to sharing news of our progress with you as it develops. Thank you. I will now turn the call over to the operator for our Q&A session.

我希望你能和我一樣對 MICT 的未來感到興奮。感謝您一直以來的支持。我們期待與您分享我們進展的消息。謝謝。我現在將把電話轉給接線員進行我們的問答環節。

(Operator Instructions) Brian Kinstlinger, Alliance Global Partners.

（操作員說明）Brian Kinstlinger，Alliance Global Partners。

Again, a great result and thanks for taking my questions. First, I want to focus on the insurance business with the expansion into 130 cities and provinces from just 25 last you reported. When do you expect to get to 1 million or even 2 million user profiles? And to that end, at what point do you see the push into B2C? Is that 2Q '22? Maybe take us through that timeline.

再一次，一個很好的結果，感謝您提出我的問題。首先，我想重點關注保險業務，從上次報告的 25 個城市和省份擴展到 130 個城市和省份。您預計什麼時候會達到 100 萬甚至 200 萬用戶配置文件？為此，您認為什麼時候會推動 B2C？那是 2Q '22 嗎？也許帶我們走過那條時間表。

Yes, of course, Brian, and thank you for your comments. We said at the end of Q3, we had around 0.5 million already underlying insurees on the platform. What this increase in license portfolio enables us is to -- we have a nationwide license and let's start with that. The nationwide license we acquired in February is great. But what you need to have to be able to process business locally is a local license. And so, the increase into 130 major towns, cities, and provincial licenses across all developed China means we can now for the first time offer a truly nationwide offering online using our nationwide license.

是的，當然，布賴恩，謝謝你的評論。我們說，在第三季度末，我們平台上已經有大約 50 萬名潛在被保險人。許可證組合的增加使我們能夠做到——我們擁有全國范圍的許可證，讓我們從這裡開始。我們在二月份獲得的全國許可證很棒。但是，要能夠在本地處理業務，您需要的是本地許可證。因此，在中國所有發達地區增加 130 個主要城鎮、城市和省級許可意味著我們現在可以首次使用我們的全國許可在線提供真正全國性的服務。

And that allows us for the first time to really move forward with the partners on our B2B2C channels that we've been in discussions with because clearly they are nationwide organizations with very significant number base and numbers of customers in the hundreds of millions. And it also allows us to really push forward on the B2C. In terms of registrations, which we said were 0.5 million, the target internally, it was close to 1 million as we come by year end. And we expect to see significant growth on that as well next year.

這讓我們第一次能夠真正與合作夥伴在我們一直在討論的 B2B2C 渠道上取得進展，因為顯然他們是全國性組織，擁有非常重要的數量基礎和數億客戶。它還使我們能夠真正推進 B2C。就註冊量而言，我們說是 50 萬，內部目標，到年底接近 100 萬。我們預計明年也會看到顯著增長。

In terms of reliance on B2C, the beauty we have in our structure, I don't want to give the secret of our sauce away. But with that significant database -- with the significant databases we'll have access to as and when we sign the B2B2C relationship now start seeing very significant impacts on the margin that we get from selling that insurance product. So, rather than giving the lion's share of this away to our B2B partner, we start keeping the majority of that and that gives us lots of competitive pricing advantages. And it gives us lots of scope for significant growth.

就對 B2C 的依賴而言，我們的結構之美，我不想洩露我們醬料的秘密。但是有了那個重要的數據庫——有了重要的數據庫，當我們簽署 B2B2C 關係時，我們就可以訪問這些數據庫，現在開始看到對我們從銷售該保險產品中獲得的利潤產生非常重大的影響。因此，與其將大部分份額分給我們的 B2B 合作夥伴，我們開始保留其中的大部分，這給了我們很多有競爭力的定價優勢。它為我們提供了巨大的增長空間。

Great. My second question, also on the insurance business, to date is still most of your insurance revenue related to the auto insurance where margins are a little bit lower? And then when do you expect other lines of business will start to become more meaningful? And do you have to do anything strategically to make that happen, start selling other lines?

偉大的。我的第二個問題，也是關於保險業務，到目前為止，您的大部分保險收入仍然與利潤率略低的汽車保險相關嗎？那麼您預計其他業務線何時會開始變得更有意義？你是否需要採取任何戰略性措施來實現這一目標，開始銷售其他產品線？

That's a very fair question. The majority of the revenues at the moment are from the automotive sector, which is a sector -- it continues to have pricing pressures, which is why I'm even more delighted with our results. But the important strategy we have is that when somebody comes and buys their motor insurance policy with us and they're on our database, we now have the option, the ability to cross-sell to that person and we can cross-sell much higher margin products, be them in life, be them in medical, in property insurance. Additionally, because you have the, as you know, most of us in the world have more than one insurance policy. We don't just have car insurance and they are significantly higher margin products.

這是一個非常公平的問題。目前大部分收入來自汽車行業，這是一個行業——它繼續面臨定價壓力，這就是為什麼我對我們的結果更加滿意。但我們擁有的重要策略是，當有人來我們這裡購買他們的汽車保險單並且他們在我們的數據庫中時，我們現在可以選擇，能夠交叉銷售給那個人，我們可以交叉銷售更高保證金產品，無論是生活中的，還是醫療中的，財產保險中的。此外，正如您所知，世界上我們大多數人都擁有不止一份保險單。我們不僅有汽車保險，而且它們是利潤率高得多的產品。

Secondly, what we expect the impact of that, particularly towards the end of this year, but more in 2022, is you will see the dominance of automotive insurance, which is the majority at the moment, that will be diminished as a percentage.

其次，我們預計其影響，尤其是在今年年底，但在 2022 年會更多，您將看到汽車保險的主導地位（目前佔多數）將減少百分比。

I guess my question is do you have the people? Do you have the agents? Do you have whatever it takes and you can already offer that? Or do you have to do anything strategically to move into other lines?

我想我的問題是你有人嗎？你有代理嗎？您是否擁有所需的一切並且已經可以提供？還是您必須採取任何戰略性措施才能進入其他生產線？

No, we don't. In fact, the most strategic thing we did was get the 130 license -- increase our license portfolio to 130. That means big insurers who struggle for nationwide reach, true nationwide concentrated reach are talking to us about different products, are talking to us about offering it. And so, we are taking new products into new areas of China that they haven't had before, which perhaps are more competitive, which perhaps offer additional benefits. And so, the strategic play in all of this was increasing our license portfolio, which we've now achieved.

不，我們沒有。事實上，我們所做的最具戰略意義的事情是獲得 130 個許可證——將我們的許可證組合增加到 130 個。這意味著大型保險公司正在努力爭取全國覆蓋，真正的全國集中覆蓋正在與我們談論不同的產品，正在與我們談論提供它。因此，我們正在將新產品帶入他們以前從未接觸過的中國新領域，這些領域可能更具競爭力，可能會提供額外的好處。因此，所有這一切的戰略行動是增加我們的許可組合，我們現在已經實現了這一點。

Okay. I got a couple related to the online trading platform where I'm guessing, given all the regulatory noise related to the two, especially the two market share leaders that you probably tempered market spending in late September, maybe even early October as you let it all play out. So, I guess my question is when do you start the marketing blitz as I suspect some consumers in Hong Kong are evaluating their options on alternative trading platforms?

好的。我猜我有幾個與在線交易平台有關，考慮到與這兩個平台相關的所有監管噪音，尤其是兩個市場份額領先者，你可能會在 9 月下旬甚至 10 月初調整市場支出都玩完了。所以，我想我的問題是你什麼時候開始營銷閃電戰，因為我懷疑香港的一些消費者正在評估他們在替代交易平台上的選擇？

Yes, I think we said in our statement, we are about to have a big blitz at the end of November. As you've said, you know, there are lots of uncertainty. There're lots of speculation and rumor in the marketplace, particularly with some of our competitors being mentioned in newspapers in China about any indiscretion they may or may not have made. The great thing from that perspective is that we're very confident we haven't made any indiscretion at all.

是的，我想我們在聲明中說過，我們將在 11 月底進行一次大規模的閃電戰。正如你所說，你知道，有很多不確定性。市場上有很多猜測和謠言，特別是我們的一些競爭對手在中國的報紙上被提及他們可能有或沒有任何輕率行為。從這個角度來看，偉大的事情是我們非常有信心我們根本沒有做出任何輕率的行為。

In terms of the marketing and where we go, the app has improved significantly since launch in the middle of September. The functionality is much greater. The performance, the speed of it is infinitely better. And what we did during that period of uncertainty was we, as you quite rightly pointed out, we tempered the marketing spend and we then tried a number of test-and-learn strategies to see which elements of marketing work better.

在營銷和我們去哪裡方面，該應用程序自 9 月中旬推出以來有了顯著改進。功能要大得多。性能，它的速度無限好。在那段不確定時期，我們所做的是，正如您非常正確地指出的那樣，我們調整了營銷支出，然後我們嘗試了一些測試和學習策略，以了解哪些營銷元素效果更好。

We think we have a very good handle on that now and now with the performance of the app being so much better. And now as, you know, we've seen this new regulatory framework being introduced through mainland China, now is the time for us for that push. And by the end of this month, we will start seeing quite a bit of evidence to that effect. And we're very hopeful.

我們認為我們現在可以很好地處理這個問題，因為應用程序的性能要好得多。現在，你知道，我們已經看到這個新的監管框架正在通過中國大陸引入，現在是我們推動這一進程的時候了。到本月底，我們將開始看到大量這方面的證據。我們非常有希望。

From a standpoint of expenses on sales and marketing, can you give us a sense for what the impact of the P&L will be either on a monthly or quarterly basis?

從銷售和營銷費用的角度來看，您能否告訴我們損益表的月度或季度影響是什麼？

I have to be careful to say, as you understand, but what I will -- the way to answer that question, I think, is to say that the spend on marketing has a correlation with number of registered users we get and the anticipated spend that we expect those customers to make on our app. And so, they are very closely linked.

我必須小心地說，正如你所理解的，但我會 - 我認為回答這個問題的方式是說營銷支出與我們獲得的註冊用戶數量和預期支出相關我們希望這些客戶在我們的應用程序上進行。因此，它們之間的聯繫非常緊密。

Last question is just kind of a point of clarification. You've talked about being fully compliant. So, I just want to make sure today that investors and myself understand. Today, you're focused on the online trading app for consumers that are either Hong Kong citizens, but they have a Hong Kong bank account. You're not focused on someone who's just in mainland China with a mainland China bank account. Is that accurate?

最後一個問題只是澄清一點。你談到了完全合規。所以，我今天只想確保投資者和我自己都明白。今天，您關注的是面向香港公民但擁有香港銀行賬戶的消費者的在線交易應用程序。你關注的不是那些剛在中國大陸擁有中國大陸銀行賬戶的人。那是準確的嗎？

It is accurate. And that's what the regulation states. But what is also important for people to understand is 2 million people in Hong Kong trade on these kind of apps. It's a very significant marketplace (inaudible).

它是準確的。這就是法規規定的內容。但對人們來說同樣重要的是，香港有 200 萬人使用此類應用程序進行交易。這是一個非常重要的市場（聽不清）。

Thanks for taking my questions.

感謝您回答我的問題。

Thank you very much.

非常感謝。

Before continuing with questions from those dialed in over the phone, I'd like to turn the call back over to Scott Gordon.

在繼續回答那些通過電話撥入的問題之前，我想把電話轉回給 Scott Gordon。

Thank you, Tom. The company has received a number of inquiries by e-mail. And we're going to post those and then proceed with our Q&A.

謝謝你，湯姆。該公司已通過電子郵件收到許多查詢。我們將發布這些內容，然後繼續進行問答。

First question, Darren, you currently have around 121 million shares outstanding. Why did the company feel it necessary to increase the authorized share count from 250 to 425? Bearing in mind the current share price, should we be concerned about an imminent significant dilution?

第一個問題，達倫，你目前有大約 1.21 億股流通股。為什麼公司認為有必要將授權股份數量從 250 股增加到 425 股？考慮到目前的股價，我們是否應該擔心即將發生的重大稀釋？

Well, when considering the increase in our charter, which is not an easy task, and I'll come on to that in a second, there are a couple of things that people need to understand. We have 250 million shares authorized to issue of around 121 million are outstanding today. In this calculation, we have to include the number of warrants out there and options. So, that takes us to circa 185 million shares with headroom of further 65 million.

好吧，在考慮增加我們的章程時，這不是一件容易的事，我稍後會談到這一點，人們需要了解幾件事。今天，我們有 2.5 億股授權發行股票，其中約 1.21 億股已發行。在此計算中，我們必須包括現有認股權證和期權的數量。因此，這使我們擁有大約 1.85 億股，淨空還有 6500 萬股。

This increase, given the complexity of going through this part of the process, is something you don't want to have to repeat and repeat and repeat. And so, we have taken the opportunity when we formulated this proposal to create sufficient headroom for the next number of years. And that then allows us to pursue our acquisition strategy to support the rest of the business.

考慮到完成這部分過程的複雜性，這種增加是您不想重複、重複和重複的事情。因此，我們在製定此提案時抓住了機會，為接下來的幾年創造了足夠的空間。然後，這使我們能夠實施我們的收購戰略，以支持其餘業務。

And I think the other thing is we did say last week, I think in finishing the answer to this question off is it's important to note the increase in authorized shares doesn't create any dilution at all because they haven't been issued. And shareholders, I want them to be assured that we will only ever consider the issue of new shares for a transaction that was significantly value accretive.

我認為另一件事是我們上週確實說過，我認為在完成這個問題的答案時重要的是要注意授權股票的增加根本不會造成任何稀釋，因為它們還沒有發行。股東們，我希望他們放心，我們只會考慮為顯著增值的交易發行新股。

Thank you. Darren, your non-GAAP loss has reduced significantly quarter on quarter. Is it realistic to expect a move into non-GAAP profitability in Q4 2021?

謝謝。達倫，你的非 GAAP 虧損環比顯著減少。預計在 2021 年第四季度實現非 GAAP 盈利是否現實？

Well, you know, I can't answer that. (Inaudible)

好吧，你知道，我無法回答這個問題。 （聽不清）

The company's number of registered customers in its insurance business is impressive at 0.5 million. What is the approximate registrations between the three quarters of the year? And how do you expect registrations to grow in Q4 and throughout 2022?

該公司保險業務的註冊客戶數量高達 50 萬，令人印象深刻。一年三個季度之間的註冊量大概是多少？您預計第四季度和整個 2022 年的註冊量將如何增長？

Yes. Very fair question. But I think I've covered most of that in an answer to Brian's question earlier on the call.

是的。非常公平的問題。但我想我已經在電話早些時候對 Brian 問題的回答中涵蓋了大部分內容。

Okay. You have mentioned that your recent acquisitions -- recent acquisition of the regional licenses will enable you to launch B2B2C sales channels and then B2C. When do you expect each of these forms of sales channels to come online?

好的。你提到過你最近的收購——最近對區域許可證的收購將使你能夠啟動 B2B2C 銷售渠道，然後是 B2C。您預計這些形式的銷售渠道何時上線？

Well, again, I think I've covered much of that in the question that Brian asked earlier. But you know, the important point, perhaps just to reiterate from the answer I gave to Brian is the increased number of license we have now gives a true -- penetrates the footprint to most of developed China. Now the opportunities for moving into B2B2C and B2C are somewhat closer because we can facilitate and support that business nationwide for the first time.

好吧，我想我已經在 Brian 之前提出的問題中涵蓋了大部分內容。但你知道，重要的一點，也許只是重申我給布賴恩的回答是我們現在擁有的許可證數量增加，這使得我們的足跡滲透到了中國的大部分發達國家。現在進入 B2B2C 和 B2C 的機會更近了，因為我們可以首次在全國范圍內促進和支持該業務。

Great. In your upcoming B2B2C insurance business, can you give an idea of the types of organization you are partnering with. Also, could your B2C business, will you be launching your own insurance comparison website and app?

偉大的。在即將開展的 B2B2C 保險業務中，您能否介紹一下與您合作的組織類型？此外，您的 B2C 業務是否會推出自己的保險比較網站和應用程序？

Well, I'll do that in reverse order. B2C we have developed our own app, which will be launched soon at the appropriate time. Bearing in mind, we have to consider where we are in our B2B2C relationships and what we expect those new -- what we commit the company to deliver in supporting insurance channels. We are talking to organizations throughout insurance on specialist products. We are talking to other organizations about more target-specific type of products. And we are clearly talking to a number of channels about partnering them on their website as their insurance partner, so quite a broad spectrum really.

好吧，我會按相反的順序來做。 B2C我們已經開發了自己的應用程序，將在適當的時候推出。請記住，我們必須考慮我們在 B2B2C 關係中所處的位置，以及我們對這些新關係的期望——我們承諾公司在支持保險渠道方面提供什麼。我們正在與整個保險行業的組織討論專業產品。我們正在與其他組織討論更多特定目標類型的產品。我們顯然正在與許多渠道討論如何在他們的網站上作為他們的保險合作夥伴與他們合作，所以範圍非常廣泛。

Great. Your margins in Q3 have increased sharply compared to Q2 margins. Do you expect such margins to be maintained in your B2B insurance business in Q4 and beyond? And what do you expect your gross margins to be from B2B2C business and B2C?

偉大的。與第二季度的利潤率相比，您在第三季度的利潤率大幅增加。您是否希望在第四季度及以後的 B2B 保險業務中保持這樣的利潤率？您預計 B2B2C 業務和 B2C 業務的毛利率是多少？

Well, I'm not going to answer that in specifics because I think it's a little sensitive. But just to give the question some respect and in terms of a bit of an answer and some flavor, I think what we should understand is that, as I said to Brian in an answer earlier on today, is that the net margin to us from B2B2C is significantly higher from -- and direct to B2C, it's multiples higher. So, it has a very -- the sooner we can drive the B2B2C business and the B2C business, you'll see significant margin enhancement.

好吧，我不打算具體回答這個問題，因為我認為這有點敏感。但只是為了給這個問題一些尊重，並在一些答案和一些味道方面，我認為我們應該理解的是，正如我在今天早些時候對布賴恩的回答中所說的那樣，我們的淨利潤來自B2B2C 明顯高於 - 直接到 B2C，它高出數倍。因此，它非常 - 我們越早推動 B2B2C 業務和 B2C 業務，您就會看到顯著的利潤率提高。

Thank you. It felt like a major milestone seeing the launch of Magpie. According to certain people, there were a large number of glitches with the app at launch and they complained it was slow, which I'm pleased to say was in contrast with my own very positive experience where I personally felt the app worked well and was faster than many of the other apps I have used. What are your own views on the performance and speed of Magpie app, both at launch and now?

謝謝。看到 Magpie 的推出，感覺就像是一個重要的里程碑。根據某些人的說法，該應用程序在啟動時出現了大量故障，他們抱怨它運行緩慢，我很高興地說這與我個人非常積極的體驗形成鮮明對比，我個人認為該應用程序運行良好並且比我用過的許多其他應用程序更快。您對 Magpie 應用程序在發佈時和現在的性能和速度有何看法？

Yes, I think there's couple of things to bear in mind here. The servers we have to support our app, a lot of people where we had a number of complaints on speed were really dialing in from a long way away on our apps are based in and around Hong Kong, our servers, I should say. That said, we have improved the speed of the app considerably. And I think in my humble opinion, I believe it's at worst as good -- as fast as anybody's out there.

是的，我認為這裡有兩點需要牢記。我們必須支持我們的應用程序的服務器，很多我們對速度有很多抱怨的人實際上是從很遠的地方撥入我們的應用程序，我應該說，我們的服務器位於香港及其周邊地區。也就是說，我們已經大大提高了應用程序的速度。而且我認為，以我的拙見，我相信它在最壞的情況下也和外面的任何人一樣快。

And, you know, perhaps you may think it's a jaundiced opinion; I think is certainly quicker than most people's out there, if not everybody's out there. And I think the performance that we have, the functionality on the app. Dark mode came in over the weekend, which I think is a significant enhancement, we expect, for those overseas clients who wanted to onboard who will now have -- that will start to go in place in the next week or so -- week or two or perhaps really. And as a result of all of that, we now feel now is the time. And again, as I said to Brian in an earlier questions today, now is the time for the next blitz on the marketing push.

而且，你知道，也許你會認為這是一種有偏見的觀點；我認為肯定比大多數人都快，如果不是每個人都在那裡的話。而且我認為我們擁有的性能，應用程序的功能。黑暗模式在周末出現，我認為這是一個重大的改進，我們預計，對於那些想要加入的海外客戶來說，他們現在將 - 這將在下週左右開始實施 - 一周或兩個或者也許真的。由於所有這些，我們現在覺得現在是時候了。再一次，正如我在今天早些時候對布賴恩所說的那樣，現在是下一次營銷推廣閃電戰的時候了。

Thank you. Have the new user registrations on Magpie and the number of transacting customers met your expectations?

謝謝。喜鵲的新增用戶註冊量和交易客戶數是否達到您的預期？

Yes, yes, as I said, it's been a very limited marketing scope also for the reasons I, again, mentioned earlier. But we were extremely, extremely encouraged with the results of downloads and registrations as well. And what we do in the target marketing that we have done and the test-and-learn strategy we have had in a number of different ways, it gives us so much valuable data. So, you know, the things that work, you dial up and those that don't, you dial down. And so, when we go into the next blitz, hopefully, we can -- you get a more effective dollar for marketing spend.

是的，是的，正如我所說，由於我之前再次提到的原因，它的營銷範圍非常有限。但我們對下載和註冊的結果也非常非常鼓舞。我們在目標營銷中所做的事情以及我們以多種不同方式採用的測試和學習策略，為我們提供瞭如此多的寶貴數據。所以，你知道，那些有用的東西，你撥通了，那些不起作用的，你撥通了。因此，當我們進入下一次閃電戰時，希望我們能夠——您可以獲得更有效的營銷支出。

Thank you. The share prices of Futu and Tiger have fallen significantly over the past few months due to concerns around weather. They are compliant with the relevant rules and regulations in China, including rules relating to licenses and also the new client data regulations. Is MICT compliant with all the relevant rules? And does this give Magpie a competitive advantage over Futu, Tiger and others?

謝謝。由於對天氣的擔憂，富途和老虎的股價在過去幾個月大幅下跌。它們符合中國的相關規則和法規，包括與許可證有關的規則以及新的客戶數據法規。 MICT 是否符合所有相關規則？這是否讓 Magpie 比 Futu、Tiger 和其他公司更具競爭優勢？

I'm going to be very careful what I say here. I think the important thing to get across to everybody is that in being as compliant as we have been and continue to be, it's certainly our opinion, we haven't fallen foul of any regulation and we're very proud with the level of compliance and corporate governance. And the team have done an exceptional job in Hong Kong, an exceptional job. And I take my hat off to them in that regard. Does it give us a competitive advantage?

我會非常小心我在這裡說的話。我認為讓每個人都明白的重要一點是，在我們過去和將來都保持合規的過程中，這當然是我們的意見，我們沒有違反任何法規，我們對合規水平感到非常自豪和公司治理。該團隊在香港做得非常出色，非常出色。在這方面，我向他們脫帽致敬。它會給我們帶來競爭優勢嗎？

I'm really not going to go there and talk about other companies. I think the important thing to get across is that we have built a world-class app that's improving and getting better all of the time. We have a much better target-specific marketing strategy going forward. And I'm sure that, well, I know because I get told all the time by all sorts of people about the efforts we have at our marketing. They'll see a lot of evidence in the next couple of weeks as we do our next blitz. And we're hopeful of the results and the outcome.

我真的不會去那裡談論其他公司。我認為要傳達的重要一點是，我們已經構建了一個世界級的應用程序，它一直在改進和變得更好。我們有一個更好的針對特定目標的營銷策略。我敢肯定，嗯，我知道，因為各種各樣的人總是告訴我我們在營銷方面所做的努力。在接下來的幾週內，當我們進行下一次閃電戰時，他們會看到很多證據。我們對結果和結果充滿希望。

Thank you. It is disappointing that the launch of your commodity platform has been delayed. Can you elaborate on the reasons for the delay? And can the management of this vertical use this time to further improve its prospect?

謝謝。令人失望的是，你們的商品平台的推出被推遲了。能否詳細說明延遲的原因？而這個垂直的管理層能否利用這段時間進一步提升前景呢？

Well, just as I said that we're very compliant in the sole trading app as we are in our insurance business, we're equally as compliant in anything we do. And that includes in the commodities trading where we are seeing changes in regulation right now. And as we have announced some time ago, partnered with a very significant organization. And the feeling of the partnership is that whilst we have the change in regulation and particularly given the volatility we have seen in oil and gas prices is I'd like to say unprecedented, but it's once in a blue moon sort of stuff that we can sit back, watch what goes on, and then we will make a call as and when things become more clear. But again, it hasn't been in any of the analyst forecasts out there and it's still not in that. So, a watching brief at the moment.

好吧，就像我說的，我們在保險業務中一樣在唯一的交易應用程序中非常合規，我們在我們所做的任何事情中都同樣合規。這包括我們現在看到監管變化的商品交易。正如我們前段時間宣布的那樣，與一個非常重要的組織合作。夥伴關係的感覺是，雖然我們在監管方面發生了變化，特別是考慮到我們在石油和天然氣價格中看到的波動，但我想說這是前所未有的，但我們可以坐下來，看看發生了什麼，然後我們會在事情變得更加明朗時打電話。但同樣，它還沒有出現在任何分析師的預測中，現在仍然沒有。所以，現在是一個觀察簡報。

Thank you. Our final question, the company's share price has continued to perform poorly since last results statement. And your market cap is barely above the value of the cash on your balance sheet. It would appear that the share price is under the control of shorters and market makers with high levels of off-market trading. Surely you cannot be happy with this. What is the company doing to tackle the shorters and achieve a higher share price?

謝謝。我們的最後一個問題是，自上一份業績聲明以來，公司股價一直表現不佳。而且您的市值僅略高於資產負債表上的現金價值。股價似乎受到做空者和場外交易水平高的做市商的控制。你肯定不會對此感到滿意。公司正在採取什麼措施來應對做空者並實現更高的股價？

Okay. Nobody is happy where the share price is, clearly. What can we do about it? I think the important thing that we have to do as a company is what we've been doing and that is continue to execute and continue to deliver. We've built a world-class license trading app built from scratch and the insurance business, which has now got a run rate of $75 billion or so annually.

好的。顯然，沒有人對股價在哪裡感到高興。我們對於它可以做些什麼呢？我認為作為一家公司，我們必須做的重要事情是我們一直在做的事情，那就是繼續執行並繼續交付。我們已經構建了一個從頭開始構建的世界級許可證交易應用程序和保險業務，現在每年的運行率約為 750 億美元。

We have nationwide license coverages on our insurance business in 130 city, provincial, and city and town licenses and you can see from the results, which we are exceptionally proud of. We are well positioned there. We have a shareholding in an Israeli-listed company that has a value and we have $105 million on the bank. I should -- my focus is to keep delivering; keep delivering shareholder value and the price will sort itself out, I hope.

我們的保險業務在全國范圍內擁有 130 個城市、省和城鎮許可證，您可以從結果中看到，我們為此感到非常自豪。我們在那里處於有利位置。我們持有一家有價值的以色列上市公司的股份，我們在銀行有 1.05 億美元。我應該——我的重點是繼續交付；繼續為股東創造價值，我希望價格會自行解決。

Excellent. That concludes the number of inquiry questions that we received. I'll pass the call back to Tom, our operator.

出色的。這就是我們收到的詢問問題的數量。我會把電話轉回給我們的接線員湯姆。

Great. We still have time for questions from those dialed in on the phone. There's currently nobody in our question queue. (Operator Instructions) We have a question from [Will Robertson]. Please go ahead.

偉大的。我們還有時間聽取那些通過電話撥入的問題。目前我們的問題隊列中沒有人。 （操作員說明）[Will Robertson] 提出了一個問題。請繼續。

Hey, there. Just a point of clarification; at the moment Magpie is focused on Hong Kong users. Will there be a point in time when Magpie expects to accept users from mainland China?

嘿。只是澄清一點；目前 Magpie 專注於香港用戶。 Magpie 預計會在某個時間點接受來自中國大陸的用戶嗎？

Not until the regulation is clarified, no. We work within the remit of the licensing, which we have in Hong Kong. And right now, you're not permitted to take mainland Chinese clients on, and so we will not do so. We will focus, as we have said in the report today, there are 2 million Hong Kong people -- Hong Kong residents who trade on stock trading app. That's a very significant marketplace for us.

除非法規明確，否則不會。我們在香港的許可範圍內工作。現在，你們不允許接待中國大陸客戶，所以我們不會這樣做。正如我們在今天的報告中所說，我們將重點關注有 200 萬香港人 - 香港居民在股票交易應用程序上進行交易。這對我們來說是一個非常重要的市場。

And if we can get a sizable portion of that, our company will do exceptionally well. Our focus thereafter is on the Chinese diaspora in other jurisdictions, be them in Southeast Asia or other parts of the world. What the company is looking to do is increase its license portfolio, so that we can market in those appropriate areas.

如果我們能從中獲得相當大的一部分，我們的公司就會做得非常好。此後，我們的重點是其他司法管轄區的華人僑民，無論是在東南亞還是世界其他地區。公司希望做的是增加其許可組合，以便我們可以在這些適當的領域進行營銷。

Thank you.

謝謝。

This concludes our question-and-answer session. I'd now like to turn the conference back over to Darren Mercer for any closing remarks.

我們的問答環節到此結束。我現在想把會議轉回給 Darren Mercer，聽取任何閉幕詞。

Thanks. I'd like to thank everybody for taking time today to join the call and for your ongoing support. And I look forward to updating you on our year-end results conference call and providing further progress updates. Thank you all very much.

謝謝。我要感謝大家今天抽出時間加入電話會議並感謝你們一直以來的支持。我期待著在我們的年終業績電話會議上向您通報最新情況，並提供進一步的進展更新。非常感謝大家。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。