Amber International Holding Ltd Q1 FY2022 earnings call

• Focused on higher margin Enterprise Solutions while unwinding lower margin Marketing Solutions. Enterprise Solutions revenue grew 34% y-o-y to a record high. - Launched win version of iFans, expanding its coverage and enabling one-stop smart marketing strategies. - Helped XTEP with customized content marketing strategies. - Received numerous awards recognizing innovative efforts, including Hong Kong Institute of Marketing's Market Leadership in Digital Technology of 2021, etc. - Relentlessly upgraded and improved SaaS + product mix to meet brand clients' demands.

For the 2022 first quarter, Enterprise Solutions revenue grew 34% year-over-year to US$15.7 million, a record high for this segment. Marketing Solutions revenue was US$31.7 million, decreased 42% primarily due to strategic wind-down of lower margin businesses. Gross profit margin improved to 33.8% from 29.4% resulting from resource allocation to higher margin Enterprise Solutions. Gross profit dollar amount decreased by 18% year-over-year to US$15 million in the first quarter of 2022, mainly due to decline in Marketing Solutions segment.

• Withdrew 2022 revenue guidance for Enterprise Solutions until visibility improves. - Will closely monitor micro environment, focus on product innovation and sales pipeline for Enterprise Solutions with higher growth potential.

• Impact of COVID-19 pandemic and disease control measures on microeconomic conditions and client demands, affecting client onboarding and solution implementation. - Regulatory clampdowns in industries served by Marketing Solutions and macroeconomic headwinds adversely affecting advertising clients in Marketing Solutions business.

Q: About customer demand for Enterprise Solutions, how resilient is it and future growth?

A: COVID impacted onboarding of new customers, new needs from existing customers, and implementation. There's strong demand as clients need digital solutions, expect rebound in second half if pandemic controlled.

Q: About Marketing Solution segment, are negative factors reflected and will Q2 improve?

A: First quarter had lingering regulatory tightening, macro headwinds, COVID impact. Q2 unlikely to improve, second half depends on economy rebound.

Q: Process and update on scaling down low margin Marketing Solutions business?

A: Started scaling down from Q4 last year, cut a third of such business, marketing solutions revenue dropped 42%.

Q: More on SaaS+X strategy?

A: SaaS+ provides products/services to brands, works on WeChat and KOL ecosystems, e.g., L'Oréal uses systems like WeSocial and cloud store to connect online/offline.