Yeahka Limited

Ladies and gentlemen, thank you for joining the call today. Welcome to eCal Limited 2022 Annual Results Announcement Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be question and answer session. Please be advised that today's conference is being recorded. I'll now pass the call to Mr. Ben Zhao. Board Secretary and General Manager of Corporate Development for the company. Thank you. Ben, please go ahead.

Hello, everyone, and welcome to ECAS 2022 Annual Results Conference Call. Before we start, we would like to remind you that this presentation includes forward-looking statements that involve risks and uncertainties. Information on general market conditions come from a variety of sources outside of ECAS. Now, let me introduce the management team on today's call. First, Luke Liu, our founder, chairman, and chief executive officer, will kick off with an overview of our business. I will then go through our business review. John Yao, chief financial officer, will conclude with a financial review before we open up the floor for questions. Derek Lai, our director of finance, will translate for John. I will now turn the call over to Luke.

Thank you, Ben. Good evening and good morning, everyone. 2022 was an unusual year for all of us. Nevertheless, our three business segments, payment, in-store e-commerce, and merchant solutions all continue to grow at a healthy rate and deliver strong financial results thanks to our broad geographic coverage. and the strong synergies within our commercial digitalized ecosystem. Notably, our payment business saw an increase of both GPV and fee rate, and our in-store e-commerce business contributes significant revenue and gross profit, and while drastically reducing its loss on a monthly basis. As China shifted its focus to economic growth, and consumption recover in 2023. We are able to grow our business further in both operational and financial terms. Now, I will share some details on the progress we made in 2022. In the payment business, we managed to navigate through a tough microclimate. Both our payment GPV and fee rate increased, demonstrating strong resilience and revenue once again reached a historical high. We also continue to diversify our channel strategies. We expanded our joint merchant acquiring service with 115 banks and launched DCEP pilot programs covering a broad range range of people's daily offline consumption activity. Our payment platform is becoming increasingly inclusive and robust. And we have begun to upgrade our current tile strategy to include mid to large size customers and vertical leaders. Last year, we maintained our leading position in the QR code payment industry. and made in both GPV and a number of transactions. As promised, we successfully monetized our leading market position by gradually increasing our fee rate to make up what was lost in 2021 when we pursued a more aggressive pricing strategy for growth. In-store e-commerce, continue to be our fastest-growing segment, serving as a valuable extension of our payment business. We believe we have a great opportunity to deepen our relationships with merchants by driving traffic to them through our various partners such as Douyin, Kuaishou, WeChat, and we grew our GPV seven times over in 2022. Sticking to our firm profitability mindset, in the second half of 2022, we optimized our offline BD organizational structure, operations, and technology to improve efficiency. Never reaching our large-scale merchant acquisition, leading market recognition, as well as smart content creation capabilities enabled by AIGC technology. We took the first steps to forging a competitive edge in this space. We also deployed multi-layer market strategies including sub-operated sites and co-operated sites that help us to reduce our BD cost while extending our geographic coverage. Jointly with our partners, we have created a merchant service network and shares merchant resources. Provides ECOS digital tours, including KOL matching, live streaming platform, and cross-sell additional solutions, such as payments and SaaS offerings. Despite COVID, We continue to expand our merchant solutions model in 2022, for example, by adding integrated delivery capabilities. We offer the standardized intuitive offering in conjunction with our payment interface, allowing merchants to self-register at a low cost. Thus, we believe this business has great opportunity to refund in 2023 as merchants pay back to their fees. We will keep engaging merchants to increase their stickiness and willingness to pay. And we'll gradually scale down our discount fee policy. Today, our scalable ecosystem has shown its ability to create a virtuous cycle among the payment, in-store e-commerce, and merchant solutions segments. The merchant base and the consumer insights we accumulated over the years directly lead to the prosperity of our merchant solutions and in-store e-commerce business. And they, in turn, enhance loyalty and stickiness in our payment business, sometimes even bringing new merchants to the payment business. Because of our strategic direction, we have a healthy and sustainable business that we are into for a long time. While monetizing China's offline consumption recovery, we are simultaneously seeking to expand overseas. grow alongside our merchants, and capitalize on our domestic market low-how and our agility in adapting to new markets. In 2023, we'll continue to focus on creating value for our merchants and providing a wide range of local lifestyle experience to consumers, and increase sustainable value for shareholders, employees, and the society at large. I now hand over to Ben, who will provide a detailed business review. Thank you.