Hello, ladies and gentlemen. Thank you for standing by for iClick Interactive Asia Group Limited Fourth Quarter and the Full Year 2021 Financial Results Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I'd now turn the call over to your host, Ms. Lisa Li, Investor Relations Director. Lisa, please go ahead.

Hello, everyone; and welcome to iClick's fourth quarter and full year 2021 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 consecutive translation. All translations are for convenience purpose only. In case of any translation discrepancy, management's statement in the original language shall prevail. Jian Tang ''TJ '', Chairman, Chief Executive Officer and Co-Founder of iClick will first provide a high-level review of the fourth quarter and full year 2021 results and share his thoughts on our execution strategy going forward. Chief Financial Officer, David Zhang, will follow and give us additional insight on the financial results for the 2021 fourth quarter and full year and provide guidance for the first quarter and full year of 2022. He will then turn the call back over to TJ for closing remarks before the call is opened 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 inherent risks and uncertainties. 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 include discussions of un-audited 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. I will now turn the call over to our Chairman, Chief Executive Officer and Co-Founder, Jian Tang, TJ, please go ahead.

Thank you, Lisa and welcome to the call, everyone. 2021 was another year of exceptional growth for iClick, marked by record in growth balance, total revenues in enterprise solutions and marketing solutions respectively and gross profit and currently our enterprise solutions business grew by 125% year over year to $65 million, the second consecutive year of triple digit growth since we launched our digital transformation strategy in 2019, while our marketing solutions business managed to grow by 7% year-over-year to $243 million in 2021, despite multiple headwinds. Overall, our total revenues increased by 20% year-over-year to $308 million while gross profit grew by 22% to $89 million. Our strong 2021 performance demonstrates the company's clear vision and the solid execution capability. Shifting regulatory landscape coupled with patent macroeconomic uncertainties and geopolitical tensions translated into a slowdown in China's economic growth, which started in the second half of 2021. These events have led to our contraction in China's overall advertising sector and continue to impact our marketing solution segment in the fourth quarter of 2021, and may extend several quarters ahead. Having said this, we remain confident in the long term growth potential of China's digital advertising industry and aim to maintain our core advertising client base, which enjoys great synergies with our enterprise solutions business. We are also excited about the enormous potential brought by the digital transformation mega trend seen in China, which we believe will be a trillion dollar market. As mentioned earlier, our enterprise solutions business has already reached $65 million in 2021 compared with almost zero revenues contribution in 2018, which proves the company is on the right track. As we have repeatedly mentioned in our vision in our previous conference calls, pure SaaS may not be the most appropriate business model in China. With our…

Thank you, TJ. Hello everyone. I'm pleased to share with you our financial performance for full year of 2021. Despite our challenging macro environment, we still reach record highs in number of key metrics, including revenue and gross profit. I would like to begin my comments with a few key highlights from the full year and fourth culture of 2021 compared to the same period of 2020. We reported revenues of $307.7 million for 2021 increased by 21% year-over-year, driven by the significant increase of enterprise solutions. Revenue for the fourth quarter of 2021 was $56.3 million increased by 3% year-over-year due to our strategic scale down of marketing solutions. Looking at each business separately, revenue from marketing solutions grew to $242.6 million for 2021 up 7% year-over-year, primarily as a result of growing market demand from specified action marketing campaigns. For the fourth culture of 2021, revenue from marketing solutions was $56.6 million US dollars increased by 17% year-over-year, primarily as we have started to strategically reduce lower margin and higher risk business within marketing solutions in order to focus on the higher growth potential of the enterprise solutions. I'm very excited to share the results of the enterprise solutions business, which achieved record level for two consecutive years to US$65.1 million US dollar of 2021 up 125% year-over-year, primarily due to the increasing needs for online and offline consumer behavior data integration and digital transformation. For the fourth quarter of 2021, revenue from enterprise solutions was $19.7 million US dollar up 87% year-over-year. Gross profit increased by 2022 year-over-year to US$89.2 billion in 2021, mainly as a result of contribution from higher margin in price solutions. Gross profit for fourth quarter of 2021 was US$23.6 million up 1% year-over-year. As of December 31, 2021, the company had cash…

Thank you, David. We are more convinced than ever that the mega trend driving digitalization across China is a long term transformation that iClick is at the forefront of helping clients to involve and capitalize on new capabilities. We envision a trillion dollar opportunity that is deeply entrenched in the involving need to open markets, service customer's needs better and transform the way companies interact with and retain loyal consumers of the offerings. That is what iClick is focused on delivering in its services and it is responsibility we, as all iClickers do take extra ordinary seriously. We recognize that our success is contingent on our continued ability to adapt appropriate, to changing market dynamics and economic forces. We meet that challenge through duty to remain vigilant and modify our course as developments dictate. We have succeeded broadly in that capacity as evidenced by our continued strong growth even in the phase of adversity and uncertainty, which are two forces that markets revolve. We foresee continue growth and are optimistic that our evaluation will recover to levels that are more reflective to our true value as we continue to execute on our strategy. We are devoted to innovating and to deliver it on the promise of everything we have built, all with eye toward continuing to improve the overall profitability of the company. I wish to acknowledge and thank you clients, or thank our clients, partners and key stakeholders for the continued support. We face some material challenges in both the microenvironment and the capital markets where everyone has suffered, including our dedicated iClickers, shareholders and clients, but we have deep belief in our business and the strategies we are implementing now. Beyond the factors outside of our control, we will continue to do our best to deliver on the promise iClick represents in bringing the optimal solutions mix that enables clients to capitalize on the digitalization overtake in China. Thank you all for participating in today's conference call and for your continued support. This concludes our prepared remarks. Thank you for joining us on today's call. We will now open the call to questions. Operator, please go ahead.

Our first question comes from the line of Nelson Cheung from Citi. Please ask your question.

My questions for advertising is about management expectation on the sector outlook this year and when would you expect the path for recovery going forward and my next question for Enterprise Solutions would be about your number of new customer additions and retention situation. Thank you

Thank you for your question. This is TJ. I will take your question about the outlook this year and I will invite David Zhang to answer your second question about the customer addition and existing customer of Enterprise Solutions. First about the business outlook and we think that this year, the ad business in China suffered short term shocks and the reasons are very well known because there are a lot of uncertainties in the macro economy, including the shifting policy environment and the regulatory landscapes, as well as the resurgence of COVID 19 cases, which have constituted severe challenges to the market. And since the second half of last year, the ad business in China has been experiencing very weak demand and I think that this will continue in the following quarters. And I believe a lot of companies in this industry share similar views as to other company while this year for ad business, we will focus on some core businesses, we will take initiatives to scale back on those lower margin, high risk businesses, where retaining the core businesses that may generate synergies with other businesses. Thank you.

This is David. Let me take your second question. In Q4 2021, there were 500 customers contributing to the revenue of our Enterprise Solution business and as to the customer retention between Q4 for last year and Q1 this year, I don't have a specific number yet, but I can tell you from past experience that the retention rate will be around 90%.

Right. Thank you. Next question comes from Colin Lieu from China Renaissance. Please ask your question.

Thanks TJ and David for the chance to raise the questions. I have two questions. The first one is about the medium and the long term impacts on advertising industry from the regulatory changes over the last several months. I wonder in two, three year's time how will this round of regulatory changes will shape the industry? And was the industry landscape going to be like. And the second question is actually about our SaaS business and our enterprise solutions. We have seen very obvious macro witnesses since second half last year and over last several months or several quarters is our SaaS solution actually helping our customer improve their operating efficiency and generating new revenue opportunities aiming this kind of macro witness. Any colors that can be shared with us and that will be really helpful.

Well, thank you calling for your question. This is TJ. Let me take your two questions. First question is about the implication of regulatory policies on the advertising industry in the next two to three years. Well, in the previous conference calls, we have mentioned that all these regulations regarding like data security and personal privacy will have an impact in the mid to long term because in the past all the policies about data security or personal privacy require to relax, but it seems that regulators have started to tighten them and shortly speaking, for example, from the second half of last year to the first half of this year, we've seen some panic in the industry and the people worried about its active impact on them. However, we think that in the mid to long term, we will wait for the mid to long term to see any real implications to kick in because we think that the current regulatory policies about the digital security and personal privacy were targeted as those are businesses that operated in a non-compliant manner. As long as you comply with the regulations in data usage, as long as your products and businesses help customers to improve efficiency, I believe that you will enjoy long term benefits, in spite some short term shock. Second, I think the second source of regulatory measure that may have a long term impact on advertising industry are targeting the industries where brands are located. For example, last year education, insurance and daily industries were subject to a series of range of a regulation and control and show speaking, these measures have produced very profound impact on advertising industry. We've seen this with our eyes, for example, the demand from some industries just disappear all of a sudden,…

Right. Thank you. Our next question comes from Thomas Chong from Jefferies. Please go ahead.

Thanks. Thanks management for taking my question. So I have two questions. The first question is about M&A. So are we -- are there any future M&A plans and what are the M&A considerations? And then my second question is are there any goals for KA clients and the Mid-care clients in 2022? Thank you.

Okay, thank you for question. I will take two questions from you. First question is about the M&A plan. Not long ago, we were fully acquired a term and you have, if you have been following us for, from time you'll know about this Company quite well. And the purpose of this acquisition is to consolidate our enterprise solutions capabilities because we are very integrated part of our enterprise solutions, including its products, teams and service capabilities. And so as to the other and M&A opportunities while we have been looking out for opportunities all along, but since the market condition is not very good right now, so we will be more cautious Well, your second question is about our customer strategy. Well as to KA clients, our strategy is very clear. That is we will provide size tools and value added services to medium, to larger size to KA clients, to up these clients grow and develop in a complicated media ecosystem in China. And with that, the strategy has great long term potential in the past, we focused mainly on WeChat ecosystem, but now we've been gradually penetrating into the KOL ecosystem. And our aim staff mentioned is to help KA clients to carry out online sales and operation Well as to mid-tier customers or SMB customers. Well by the way, an, another thing about the key, the KA clients that is we still use the standard sales products to serve our KA clients, of course, for different KA clients. They may have a different customizing customization means and a student then big client base. Well, since the first half of 2021, we first started to promote standard products to them. And but due to the week economic performance global wise, including China, since the second half of last year to early this here, we haven't seen very much programs. We can say that programs actually is much slower than we respected, butwe've still will keep an eye on the SMB business and we will continue to make some efforts to develop this business.

All right. Thank you. Our next question comes from Brian Kinstlinger from Alliance Global. Please go ahead.

Great. Thanks for taking my questions. With the uncertainty in marketing solutions, coupled with the challenging capital markets for ADRs. How do you plan on managing the expense side of the business to limit your losses? And can you quantify the bad debt that was recognized during the fourth quarter? And then my second question is how much of your marketing solutions revenue is low margin and not strategic to the enterprise segment? Thanks

Well. This is David Brian, thank you for your question. As to the provisions. Well last year we were provided for the bad debts of two companies, total 5 million years dollars.last here the central government has come up with a lot of a series of regulatory measures, which has hit some industries hard. So these two companies, one is a eCommerce Company and the other is a gaming Company and to cost control. I think that we have done a pretty good job in cost control, obviously is. And now it's a difficult time. So actually we will try our best to do better in terms of cost control. And currently we have a sufficient cash and for you can regard receivables as cash forward to, and currently we have a cash. I also, I also like to clarify that this 5 million use dollars is a special provision for bad jobs. It's not the overall bad that provisions Your second question is about those low margin businesses of marketing solutions. Well, currently they account to, for a third of our marketing solution revenues, but, we will take into account the market response in dynamically adjusting the scale down scale,

Right? You as there are no further questions, I'd like to turn a call back to the Company for closing remarks.

Thank you once again for joining us today, if you have any further questions, please feel free to contact. I clicks and best your relations department through the contact info provided on our website. Thank you and see you next time. Bye bye.

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