Scott Gordon President-CoreIR
Darren Mercer Chief Executive Officer
Moran Amran Controller
Brian Kinstlinger Alliance Global Partners
Call transcript
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Ladies and gentlemen, thank you for standing by. Good morning and welcome to the MICT Second Quarter 2021 Financial Results and Corporate Update Conference Call. [Operator Instructions] Participants of this call are advised that the audio of this conference is being broadcast live over the Internet and 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 November 16, 2021. I’d now like to turn the call over to Mr. CoreIR, Investor of firm. President Gordon, the Relations Company’s Scott Please sir. go ahead,

Scott Gordon

and and Good second for results call. operator. you, thank quarter update morning financial MICT Thank the everyone you conference for joining XXXX corporate us

us of and Officer Joining Chief MICT. Controller MICT; from Darren Moran MICT Mercer, today Executive for Amran, are

for be operational or results. During will statements statements performance making this call, that future including forward-looking management address MICT’s expectations

that may from Forward-looking cause results statements other involve materially risks to those factors statements. and differ actual

these as reflect about the described recently XX, annual law, and update contains The it. is today to my to information information particularly For MICT that with refer factors ahead. MICT’s today turn reports this XX-Q circumstances It Darren, pleasure please this time-sensitive of XX-K information content is to to the more Darren any the risk Form and call, filed precautionary now over press call. Except by risks, in or statements to obligation Form please Form on disclaims of only MICT’s Executive call to publicly filed Officer. X-K release in quarterly SEC this and that most report on accompanies that occur Chief events as go any required Mercer, after call accurate August or revise XXXX.

Darren Mercer

now If can on and the call I the webcast your Scott you, us Slide morning all thank and to Good joining Thank attention X. everybody. for you today. to turn

quarter quarter-over-quarter acquisition a XX% the revenues This XXXX. revenues increase consecutive success we in insurance pleased are of business with compared have report million second $XX.X was market. stock in completed platform, enables which and growth. and of the with up to us a This This million XXXX. which insurance opportunity permits we XX% major is on February, achieved the achieved to growth to record rapid over very exchanges driven second stock States Magpie large of $X.X by the to with very represents for quarter and In quarter United is required online in our Hong QX a BXB Kong the QX providing that our us in an of of due experiencing China. the the for licenses offer sector we trading in first product company strong Securities, operate We revenue increase which to the

into stages scheduled launch, launch, quarter, now of platform We stock an to exclusive and our partners, oil for enables testing gas Trading entered currently us and representing soft we which of the offer are Petroleum partnership through China’s Shanghai In which as is trading with the mid-September. final official clients its Center, gas trade. for Gas XX% in our and oil of Natural approximately also first trading our prepare we with

building of platform trading this the to We and expect are currently out September. by launch end

within consolidated Additionally so be was in as our statements of approximately offering XX%, second Micronet Micronet, an in stake financial no MICT. will the result reduced Micronet’s a by quarter, to longer

We May visibility. its added as addition on Cap Micro was enhance Importantly, will the MICT of well increase stock Index. believe XX USA as MSCI our to liquidity this

as support ability to of we both the our in with growth. strong will with very million XXXX. and inorganic Finally, sheet and have our $XXX This us organic balance cash XX, provide execute June plan

Slide slide X. Next please,

of of during the significant as We acquisition a insurance the progress the over result have license grew business We made throughout China. our insurance nationwide XX% by quarter. brokerage QX, past

professionals. affiliate of revenue We’re sale brokers strictly our result successful working has to the maybe insurance in as particularly believe excited BXB is this This of about business. packages a been accomplishment, is it we up with beginning ramp which as to operation offer the

by attracting groundwork as significantly shortly, we’ll BXB higher and to preparing for of of a insurance to into products. BXC custom multiples of be focus. designed to The distribute we current margin strong channels we’re are BXB compared ramp to a through large are at more we and our offering. followed both laying underlying provides start migrate of much sales that As BXC number now aim online that both insurance to by new to what BXBXC platform up higher discuss insurees repeat and direct products business business from anticipate considerable margins Many instrument we which we

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position growth perhaps providing have, of If earlier I segments. our resulting discussed trading significant amassed significant new multiple of Slide offerings, runway most now of several we in businesses, your build-out also the significantly, our $XXX including to X. as advantages balance segments, June million to throughout attention This strong support both our can the our while turn cash XX. Finally, following of has sheet business cash on and

In of million $X.X As insurance weeks, sequentially initial we late massive range in this revenue in we full operations segment. to throughout us $XX.X in QX, revenue China, this by generated providing of The license to full in products us achieving for we previously grew a in last segment launch. the of XX% insurance then that quarter enabled short business that to QX our serve a opportunity million. nationwide launched in first year, and this acquired grow segment we discussed, December our we following even

in of very the For its market this is a the penetration market, significant the build in still to stages, insurance X.X% China opportunity business. early with us providing rate only

progress from able the local by business, of system, able a products that and expand margin cross being expect sell even which to The by we a company through on but more expand localized obtaining at is for the offerings. growing that even to ability had business in the significantly growing will offer products market, our onto to our insurance products region a opportunity believe CAG our our allowing rapidly to very our to higher products only growing over beginning XX%, in being relationships. on an growth BXC by also the long supported from we BXBXC wider process of XX% we more We business the Now brokers grow is BXB not our licenses just to that tail a insurance specialized necessary and and over further our moving of first network higher growth by second. generate margin and quarter eventually that are of of

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offer million extremely ability sheet margin cash finance balance provides $XXX capability, strong with Our in carries the margins. approximately high which to significant

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business, Asia it will customers, our relationship provides Center, Shanghai fintech Natural Through significant approximately Petroleum Gas trading. trading to and our for commodity Our opportunity. out with Trading oil and China’s that a rounds access gas Southeast account China offerings in we direct XX% which have and

segment in Our capabilities. trade this will trade offering and margin financing, clearing provide execution,

financing margin Our will enable customers. provide us with profitable to cash these large highly balance

of new the take working on fine I launch initial to XXXX continued team clients and report are the to may in year. see to discuss it QX, by the and next a as Micronet to we end this of I’d prudently now throughout business the we platform tuning our division changes throughout and onboard expect year. last expect We September, growth regularly the into moment use how since like the

So to could X. please if Slide you turn

reduced the so of QX. result offering, our focus the In ownership Micronet Given has as a XX.X% a non-core become approximately second QX, market, Micronet in the new in from FinTech business. quarter, our approximately on was XX%

of but no a Micronet, into longer loss to As our consolidated our see attributable gain within the our our segments, below With this transparency for the longer as business will able P&L, this to consolidates it no FinTech is line change, performance that one-off non-controlling P&L, clearly a being interest. of within result or investors be increasing financial. counts

significant $XXX,XXX. your and using you busy As XXXX while beginning XX we have weeping as way. equity the the was to much The turn progress laying of a of the revenues work of is just the and still successful, value half in we method attention If the walls of have accounted benefits Slide the made of record success, foundation first of quarter-over-quarter. for for Micronet be the can along X And been see extremely I now addition achieved please, while beginning QX investment. can beyond, will XXXX, since June and of long-term has

in and growth our these now and in poised trading put businesses, are We stock the coming develop years. solidified partnerships multiple platforms have licenses drive for place our that’s particularly insurances dramatic national to Chinese trading

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set BXB having offering. secured business example, our a Chinese up to insurance strong product our national For launched licensing and

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following the connectivity successful the optimistic the commodity place, a building to both end create offerings All of perspective, direct Asian marketplace. trading platform expecting accounts over for placing Petroleum these by financial Magpie about launch the Gas, now from trading diligence launch technology Finally, business. all the the with the our gas and in and forefront at enterprise trade, be enthusiastic assets, in has China’s shortly, of of the to Commodities we pieces XX% including this oil and of securely in platform. Shanghai and our Shandong continue Natural partnering are clients to which necessary September, are MICT I to

started. during growth seen even getting we we as quarter-over-quarter are XXXX, have Our just exponential

for of Given of the now feedback beginning would each towards financial these received XXXX the has to over the Moran and turn there to of already for I like the optimism is that reason we are review offerings merely of celebration. end in I Moran? Amran we’ve believe quarter. been tremendous. call the perhaps that

Moran Amran

increase insurance million was to of well company issuance driving declining quarter and the and was first Director, second $XXX,XXX the second prior $X.X a second division, operating quarter, second in cover first rates. as in versus million to quarter. was December. was prior mass versus Gross and cost address Thank from the the versus Employees in in in the the quarter. million in million quarter in marketing was firmly insurance million and loss and quarter, reduction by quarter which the versus profit was in million the the loss increase was million G&A an the beyond. $XX.X was result $X.X the ramp Darren. the insurance expense was General quarter quarter, in from brokerage non-cash a third the in Growth versus $X the million customers, of $XX.X increase expense $X.X was XX%, incentive versus $X.X $XXX,XXX million in first the XX% third quarter expected option in as late first quarter the for R&D Micronet. the seasonal profit million. in quarter Officer in an $X.X in of of $XX.X quarter, adjusted $XXX,XXX approximately in consolidated $X.X of use The million second quarter in the quarter. from to was shares Margins second our launched the Revenue of you, which quarter $X.X first was in and Selling new versus administrative critical expense in are prior

Excluding loss $X.X to attributed the million the operating the into with China quarter associated market. MICT stocks in second net in first The in based loss adjusted company and expense was the compensation, of the million quarter. option XX, increase $X.X launched million. $XX.X was high $X.X of was and result the loss versus only Net please. the the operating operating Slide loss million FinTech

XXXX, result, our cash couple capital from Darren. balance balance We $XXX in after our made of a year increased significant $XX have the to at improvement up Back million as you, a end. raising, million, executing to sheet

Darren Mercer

Moran. you, Thank

of MICT is hope impact And emerging the well see, I As we FinTech Chinese you progress XXXX. made have can half to exceptional the see clearly now market. already then first positioned from during significant

demand stock products and a strategy anticipate targeted to a Magpie in significant in and driven a also on insurance significant innovative expansion and BXBXC business poised emerging high other our highly then our We team. product. development, acquisition BXC includes tailored by original based margin insurance management beyond and launch services, offering market, already software experienced that but is and of Our for the well-planned revenue our BXB both of platform trading our already investments marketing health

also a for We and player commodities gas in launch our which futures platform is the supported and to unique relationship trading with oil expect our shortly major thereafter, Chinese industry.

enable strong with extremely their our support million larger trading will We margin to cash, to growth have $XXX that insurance us both support an will execute growth strategy, division, profit on in in current significant balance stock plan which the sheet result and providing resources, respective opportunities. division trading and

our look we session. thank I over about getting sharing you now Gordon future call just our you excited turn your Q&A not are for for forward to more started the support We to the be develops. We and it of and we MICT. progress Scott continued as with could will

Scott Gordon

investors Many from thank these for today’s and feedback of them continued shareholders. received interest, their were support company questions call Thank repetitive. The many of you, for we questions Darren. and

so be frequently asked And will questions. addressing today’s call, we the most on

things has information activity are Additionally, well company by shares. that a forward-looking and share company fluctuations of as disclosed a the seeking not received number its or trading number the of questions price our regarding questions of the as about

such What shelf your position why May? is, and latest cash a operational or not apply the did on for As financial in registration cash comments shares or your compliance, on of you that, company market on in a assets performance With large valuable guidance strategies the first capital one is or matter the the interim balance forward-looking and sheet. regulatory market. does offer its policy of update, of is the question the burn

Darren Mercer

stock both trading development operation XX you costs commodity Okay. Well, our can the movements of of especially in pretty the of the this cash see our of verticals, our year across I position, think three platform, in considerable burn June. we’ve Magpie is all launch we that of March from mind in the near FinTech XX funded our app trading small. Bearing and as cash as actually and

the statement, from that denominated balance we to it seen this to have best felt terms monetary in line ensure the cash presentation and the have With sheet. regards the practice, in with was in is you’ve and today, we on registration $XXX million still we As from announcements sufficient as we forward. important shelf moving

Scott Gordon

Thank you.

your of the QX. between next of is question, main product revenues revenue growth you the impressive from sales? Our all the in split been BXB has insurance have an and categories in insurance approximate revenue again QX Do

Darren Mercer

popular policy should we most range insurance Yes. of the so Good expect, property, offer car, life, a forms on. I full of question. health, and

the I many brokers our that to go to for in that strategy these feel through as is into been get has as to underlying though, that What it’s today. with I access of sure far not two aims say split particular numbers, As ultimately mind. I’m as can insuree possible, appropriate

first two, this eye the executing evidence in do of into one the shifts some stage second of and major we’re we’ll operator we in in second significant we in in well those right continue And number we both have currently BXB underlying very we which and also products, on there’s more that on want from are a confident on profit will insurance, margins. platform, margin China exception insurance insurees will particular offer that half positive medical huge a a of BXC year. have the life to to half, tell and a our you but model is the be to significant What area insurees can higher secondly, in, believe to now, this products, clearly search rise margins. ultimately towards The our of is are seeing migrate our insurance. this impact which I for profitable ongoing And the

Scott Gordon

I QX results from it a you. margins were that Thank be continuing to in for lower And reason this? compared XXXX, what XXXX know gross will the the is QX trend?

Darren Mercer

Yes, as couple was down margin very for QX you our see that. good reasons are and a of can gross in there

in the there of my of margins that, is secondly, to of short time are The first to But insurance and possible. and in have which incentives, is QX. onto QX had through in assigning what in as the impact say with this say, on overall we very insure is, added And margin underlying of ourselves. by explanation year, reduction particular considerable our our of the some providers we’ve done number reduced brokers And that QX can new which is space we marketplace. much line platform certain a in rates this had the strategy, many the involves And we seasonality offering time that also have of expect I and pleased I’m to to to as maximum.

Scott Gordon

over other next Thank of you. intend the do launch months? areas What to XX you insurance

Darren Mercer

into I we in is base believe I much move our growth specialized think And a also base which niche, the as product part grow our are rather expand position pretty and we I more strategy. think to is larger couple insurance covered answers ago, are a that customer to worth them. however, we of something against I said higher executing our insurees margin we well. emphasizing the of better it that But it’s products, key

Scott Gordon

and do to this business? a impact BXB growth? launch When on sales Thank And insurance and in expect you your to have do you expect BXBXC acceleration you. material

Darren Mercer

very We in said to able BXBXC arena move as clearly and a future. want that in to for presentation forward we will progress as target key who the be to speed in in ago, arena. the being the which our shareholders few a specific this this hope work really all us with to minutes Yes, I we focus fully with particular up near channels to very keep online is

noted should Additionally, channels. be BXB both the we there support it that the and BXBXC

licensing that broad very help explain bit a more. need do You a to base

in process license, we originates. which is to the able particular that enables it to the country, the but to nationwide we have we went which brokerage the internet it’s be that province that business where also anywhere it usually sell On hand, online one great important, in need

end, progress And very QX licenses in considerably. so a that in say, I we’ve made those can significant already extending provincial

Scott Gordon

behind launch this? for launch Magpie What appears the now reason for? schedule. when is to slightly Your the is scheduled be And

Darren Mercer

shareholders you of suppose I a longer suppose think hope could we full much show Yes, a understand could by the fair, little for, particular is – range value. weeks, points number to of vertical amortize us it’s very to but this this important, part then critically the the of small Okay. is I I of particular to I it but say a that business, think the will get important to is taken what

we into went And QX, so would. said software and in we surely we

As is will a to and we to have launch. is will testing very enhances, do a result have add app very of feeds the taxes, it do the of think the very a with we the that improve customer data of us number to particularly, our of from add favorable that’s undergone understand development, providing that But a to which functionality when from the want very from user of able compared our It’s think a robust product apps ensured which we overall extensive other what experience. are definitely And run enabled we feeling outside control. to in-house companies that if there. number out shareholders the went all out we experience I for user

on completely ready. must company extent, timeframe. that and any of too, this to as changes in be I that upon reiterate never the feeds so would I fixes we’re the an But importance have take launching all want to terms turning development to any such we before And app overall risks of bug again, holding the effect knock around to or in some can on that timetable

completed. necessary been We happy the all that are testing has

Scott Gordon

Magpie that to the Robinhood? have a of and UP feedback and like been WeBull been testing users compared Magpie has what Would the Fintech, Thank you. FUTU, even success has say any trial of you the

Darren Mercer


majority UP note Fintech dealt is just called of importance it’s already parts first my answer I who Tiger know have don’t is were all Two least answer, actually at mentioned of around yes, to if with in the of more question. been one, the other that. or have using previous to have not always that certainly previous have to the secondly, that of testers really, not and the the the that used in For benefits it question used, we those apps – correct testing,

now development middle increasingly a plans good September exciting of are and and next movement. technical the only for at We confident launching a into improvements year, further very very in are the app of later providing this year and also

Scott Gordon

users you. Thank intend that quickly do new market can How you so acquire the you to into penetrate effectively? Magpie, and market

Darren Mercer

data you tools have required believe marketing all not a were granularity updated customer I’m ahead very much both brought very those with on successful prepared we and plan that particular we on targeted data launched, I sense. we that complete competitors shareholders as and we’d because acquisition out place, leading through plan in-house our really what analysts, continue. external marketing partnership are we necessary and have throughout once we keep in think the for into it what makes of to are market progress about doing exciting, is will clearly are, go found too problem is plans As would which this expect, analytical we

Scott Gordon

date? Thank the you. What the and futures on a update commodity the launch business, current trading on and what is latest position is

Darren Mercer

hope huge Gas And shortly of the trades much will for X,XXX oil least launch be Their of – of from gas this industry. through people launch anticipate involved oil in departments on gas and Trade of Oil an to the sized a after and government including it the understand through excessive members, track to corporations to Center companies, has our the super platform requirements Magpie and association responsible companies Shanghai end presentation, the is XX% China. at very for in host the gas medium we’re App. city provincial Yes, September. and I all oil and

Commodity few more we’re those historically we the broker has hundred the a of of business that hoping as from multiple platform connected purchase Trade converting the a members. around Centers sales We to and against a customer do what been Shandong act for benefits the How are management of underlying the and market for examples, and Shanghai potential with hedging monetize are better the protections onto market that transactions facilitating offers same volatility. ForEx and exchange tray obviously an risk Exchange

the plan XXXX. to the increase said, on about. we’re as September, at Our monthly we of numbers start, it’s particularly off customers basis and throughout onto we excited a end I into is the and something of that And will platform QX bring

Scott Gordon

on talk Thank my at is moment in future major that actions that the the and of financial business sector it lot sectors, Chinese on a feel highly in the you. risk say It sector the see insurance a MICT you the including future? expected this risk? clamping There both Chinese down understanding you Government the intervention websites press will and government of and as Would certain China. you of do help or reduces the Do regulated in significantly the ultimately the about Government recent technology. that on is services financial already are

Darren Mercer

It’s weeks, a would a rank where I sure we’ve more country I’m it’s fair a question, amongst question many of than it it give around seen but very this lot those and look, this, qualified small last think given bash. opinions some not I’ll a others. press on good there number the of are

and introduction overwrite of zealousness regulation of I journalists government commentators, opinion, Chinese the recent industries of in the think number in in the Western to and humble of number a perhaps a my headlines.

brand an I what say, So isn’t as yet. political XX statements. I at years China I’m think going economy, if to be code would sure, to captain listen look civil economy, But new you to is it’s most old a

I we’re catching particularly so verticals liked to mind in businesses, in and play, now, a has area fairness the have regulating regulations candidly that a witnessing or a all growing they’re lot of see what Europe. and States ever up at catching And rate around regulatory in of speaking, place what a no in and is a and space framework, one those these underlying the And at the recent up those the it operation ensure time. new putting think the that in customers of knots particular putting protect lot and do of mobile then they is as Clearly, that fairness online lot until we industries. of different that this seen United than and

let’s that. yes, So do

the exchange Let’s it is question Insurance, international all a China. exchange the premiere by Magpie the regulatory were anywhere we first how any of us. in decades move matches stock impacts robust observant, licensed of Hong a requirements on world. good standing, the to currently Kong in very that really without doubt framework SFC

this regulated Secondly, permits we regulations services work a have framework around heavily within adhering You is do to and And that. with sector. to answer what what the financial trading strong again? very is there already are

operate. regulatory impact the which above take long So never do of that guarantee no something in divisions any grade. I will I there a that three we strong that a and them can operate adversely changes would be are that’s areas of in because pay which history which we well the standing framework in my to comfort have or robust But in operating regulation

Scott Gordon

any of in you. to to make a the you across future? vertical acquisitions new further fintech verticals Do in foreseeable or fintech Thank any expect complimentary perhaps the

Darren Mercer

possibly have think question. us would shareholder brought value that really if answer. except there to up, and that’s allowed I’m be going that how say answer showed And consideration. opportunity I’m I Well, not that question give never to enhance was wouldn’t something an to it I that to not I we’d clearly sure all could say And full to to it ever

Scott Gordon

have clearly a any in in apply and to for you other valuable license You Hong intend services Kong. very licenses Do jurisdictions? securities financial

Darren Mercer

the app of by think that and with our rolling. see I complete where Yes, And now thing the each people we licensing launch our the most key middle in full other us important required of are consideration. the to and too start ensure right our the world, in line we the there in at we jurisdictions. And the of areas September already looking looking rollout as introduce offering. certain can of to business the for competitors, areas all is at And we though are regimes we app those

Scott Gordon

expected. have to in little believe to a much third-party complete which Magpie, have the own you appears originally a testing rather development than platform technology undertaken labeling how than you Bearing Do made on white you longer and you right mind your decision still taken solution? and to build

Darren Mercer

margin us flexibility Unquestionably, shareholders It the do benefits we to is our ways own. offer, I will to between shareholder number another our of realize our see want the small they weeks. clearly product shareholders hope thing distinction services. our value, not out of our right And It the action parts significant and I to significantly in on a unquestionably and it when old the share the secondly, label of beneficial. white with provides it in a having app and build believe competitors to provider,

having building to without of And one with the by whole think profitability margin providing will increases ourselves. margin Thirdly, overlooked. own always the was be also, share there’s I again, that it the app our setting finance

share the it time, of mentioned something you not. important. I that’s when app on clearly last this or think all relating to all very customers someone who then data owns And is only the with that others, I XXX%

I costs getting owning middle proprietary our think outweighs involved of the considerable own of significantly the in time additional value the this state by is of platform own to September. our and

Scott Gordon

numbers your in What choose no control? keep you Thank investment to Micronet in its not strategy did why XX% you. your and majority longer into to Micronet and consolidate is With your stake you to reduced MICT. having for

Darren Mercer

question. a That’s fair

opportunity declined. deal Let our recent of question fundraising, into Board which given invest the We part to with the respectfully second were Micronet’s your first. me

of really, to of the the operations businesses I direction call no Given longer the Micronet are the going. rest group’s

I group. not concentrating maybe in management were of reflection themselves. team, rather most or very think the shareholder than ensure to on we better it’s they’ve on decision that XX% really resources out was and the goals felt Micronet. we invested core cash appropriate more large are the fintech a the a these I shareholder itself. remain balance the notably we as as considerable is still and that that in invest, no reflection days have arena, the feature businesses can Micronet XX% Micronet Board decision achieve wish passive to Nevertheless, they a hope sheet, on all which with in or it said, Micronet the allocation shareholder in its within a the not I success results of there was And set it the the best

Scott Gordon

November. has this merger this concern? post have value. been able Last seriously placing the you since address placing question, damaged and the to in concern to shareholder subsequent first disappointing share that company’s your There’s Are performance price

Darren Mercer

basis. It Yes. address significant we which than generated quarter-on-quarter product sell nationwide a enables as created to I we’ve a new strong this have secured license, point BXC We this less and platform Look, launched growth. and seems a since now meeting. management every November, at revenues insurance that team BXBXC us what instant done to

now process We’ve broad BXBXC the We’re the requires BXB market and that quite our and working a provided deliver a get the for offerings partners not enables finance couldn’t fundraising, we to us competes with we it? very finance, middle of else. a the margin platform, that could the without capital licenses to which very Hong for investment us. make both year. we built provincial that a could and and needed supporting everybody the we the of local with ensure have Magpie We own the same can business. sheet that really we IPO products requires platform range We support with software BXC in opportunity is you’ll that and platform we Chinese balance business. sheet on which built And that in of proprietary the had that a won products, and proprietary done. to SFC February this Kong if support have a or we Commodities just So contract, hope acquired support the see, September, we’re software, exciting business. important to itself, license that I fundraising the balance but demonstrate

on I platform at the about business in commodity middle we with fundraising country, that business, Magpie, significantly September in about results the the have argue the the of the I of trading end to launch think we’re the done impact of insurance that September. would and it

opposite you. the Thank the reality. think I

Scott Gordon

Thank you, Darren.

over back Please We’re now go the operator for going live to to the Q&A. our ahead. turn call


Alliance [Operator Please Instructions] First Kinstlinger, comes from Global go Partners. question Brian ahead.

Brian Kinstlinger

Hi, Darren. Thanks for taking my questions.

eventually get You and business? in launch. the events to to any talked about in that obviously accomplish BXBXC then soon starting order the BXC there started Are MICT BXC needs business

Darren Mercer

very think a I Brian. and question, it’s good No

us provides insurees you lot get you number move underlying In business ultimately platform, and licenses. small our of portfolio the minutes now know large that to or so able getting to question picked very business. for online. other to us us lot can enough have really, from process The important license know, is platform thing provincial a QX, you up those future. large same margin as have, as sell and insurees don’t the but it our importance onto is and ago, a the brokers answered process was you we we product, that for I’d convert ready can which more if will it. license added insurance own equally, the the which insurance all the to soon. you require enables to That and a a was China’s us you previous it now nationwide license which sell getting different in launch I also that that What – platform to well, the to right a that considerably add And brokerage of which BXC of country have very be also other clients and enables step it’s enables nationwide and to I as as is, five

able will as around launch to business that the the of this of our year. see in evidence ability And the of second be And you the well. timed facilitate so to BXC product underlying is half

Brian Kinstlinger

then understand insurance And on each your Maybe partnerships you are those trading couldn’t the or side I the various your of comments. us stages Great. just businesses? business? made strategic in of of of update you Or progress either negotiations? necessarily platform Have in side

Darren Mercer

BXBXC said, perspective, target I of insurance very – we partner been to which as and all sign of about here. trading. Yes. And on partners I perspective. specific say have from in with From stock a question QX. said we shareholders I with made that And the – discussions those. as lot end to up to as of do the A as clearly progress able number speed early quarter of we will platforms we as And careful be But made. a has and certainly in with what wanted we the keep have I’d in partnerships are your when understand contribution strategic expect, have didn’t this the we I to been

Brian Kinstlinger

with when strategic it Yes. there. lined hasn’t you the I’m launch gone curious, with maybe you full the process up are while the trading customer that just side, the plans on have acquisition to do launch, take – me going help partners to or

Darren Mercer

year say I a give needless initial require our But want our away. plan the Well, marketing we this do and I platform a plan strategic in as next core of a hopeful very are, objectives large don’t we’re users Okay. be question, know onto very partnership. number don’t well said which But successful, to previous as to and have initial what our into a focus, stages, in the to we detailed attract to well.

growth. We expect to considerable see

Brian Kinstlinger

the of of insurance the margin look specifically insurance what BXC not on XX in some more second might piece it has become business. Last to but that business? Yes. about exactly, you But half your the question, business, to range of margin kind I can communicate, what like out might might a of the year. on months of like the helpful profile think XX bigger be look when the talk recovery importantly,

Darren Mercer

Okay. specifics, Without very that’s giving question. a good

significant because of brokers of very, and BXC last want benefits significant The the move business, long-term we move margin, of Particularly multiplications of BXB contracts very BXB a we and the movement particularly from from the the margin part more, because very not insurees will rates the the In on even to that year, QX a but QX, grow very all decided in not think insurees higher those we I next in deal we this BXC normal will when as significant to insurance platform, we quarter, model, number long underlying BXBXC to and We is of first them lower. that passed think to it think a margin. and The bit at a recovery QX particularly and let’s quarter. to to margin BXC have received multiplication or is there we is typically very, place. with the on BXB of impact. gives more absorb shareholders. have relationships we our

the can of the that see of to I us what have the also margin and we into how be the products change to is that you possibly of with will BXC specifics want I of with support can It give considerable as a that – will transformative. get much been will multiplication for customer enables to You have on greater. to considerable the once number multiplication underlying away because active but allows many and don’t and discounts offer is websites obvious to users that focus that on price the platform margin through – relationship insuree they’re do reasons, said, as what margin. has so still converted us additional bring the and BXBXC insurees we

Brian Kinstlinger

Great. Thanks, Darren.

Darren Mercer

Thank you, Brian.


remarks. like I’d back Mercer question-and-answer over [Operator go Darren our Instructions] to session. Please to closing the concludes turn Mr. for This conference ahead.

Darren Mercer

much. very you Thank Okay.

to just have So updating thank a further ongoing call also for the updates. like providing to all. support. quarter everyone today the you join results And taking time And please, Thank the third for on day. like look on and to to I’d finally good progress I call you forward conference your


for presentation. is today’s attending Thank conference now The you concluded.

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