HONG KONG - iClick Interactive Asia Group Limited (NASDAQ: ICLK), a prominent marketing cloud platform in China, announced today the appointment of WWC, P.C. Certified Professional Accountants as its new independent registered public accounting firm, effective immediately. The decision, sanctioned by the company's audit committee, comes as PricewaterhouseCoopers (PwC) declined to stand for re-election.
The company's financial statements for the years ending December 31, 2023, and 2022, audited by PwC, did not yield any adverse opinions or disclaimers and were not subject to any qualifications regarding audit scope or accounting principles. Throughout these periods and until today, iClick reported no disagreements with PwC on matters of accounting principles, practices, or auditing procedures that would have influenced their reports. The only exceptions noted were material weaknesses in internal control over financial reporting as previously disclosed in iClick's annual report.
Furthermore, there were no consultations between iClick and WWC regarding the application of accounting principles or the type of audit opinion that might be rendered on iClick's consolidated financial statements during these periods.
As iClick transitions to WWC, the company has expressed its gratitude to PwC for its years of professional service and is committed to working closely with both firms to ensure a smooth transition.
iClick, founded in 2009, is known for its proprietary technologies and data-driven solutions that enhance business growth and profitability for brands throughout the consumer lifecycle.
This change in auditors is based on a press release statement from iClick Interactive Asia Group Limited.
In other recent news, iClick Interactive Asia Group Limited has announced the sale of its mainland China demand side marketing solutions business to SiAct Inc. for RMB1 million. This strategic divestment is part of iClick's plan to shift focus from lower-margin, high-risk operations towards areas with better profitability and operational efficiency. In connection with this sale, iClick will provide a six-month loan of RMB20 million to the business being sold, with potential for extension up to 12 months. The company has also committed to repaying approximately US$35 million in outstanding loans from three banks to the disposed business within six months post-agreement execution.
Simultaneously, iClick has appointed Mr. Winson Ip Wing Wai as a new independent director and chairperson of the audit committee, replacing Mr. Matthew Fong. Furthermore, Ms. Josephine Ngai Yuk Chun has been named the new Chief Financial Officer, succeeding Mr. David Zhang, who will continue to serve as a Senior Advisor. These appointments come amid an operational adjustment within the company, the specifics of which have not been detailed.
iClick has also received a Nasdaq compliance warning for failing to file its 2023 annual report on time, prompting a 60-day window to present a plan to regain compliance. These recent developments highlight the ongoing changes within iClick Interactive Asia Group Limited.
InvestingPro Insights
As iClick Interactive Asia Group Limited (NASDAQ: ICLK) transitions to a new auditor, investors may find additional context from recent financial data and market performance helpful. According to InvestingPro, iClick's market capitalization stands at $33.26 million, reflecting its current position in the marketing cloud platform sector.
Despite the change in auditors and previously disclosed material weaknesses in internal controls, iClick has shown some positive financial indicators. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility during this transition period. Additionally, iClick's liquid assets exceed its short-term obligations, potentially offering a buffer against immediate financial pressures.
However, investors should note that iClick's revenue for the last twelve months as of Q4 2023 was $133.22 million, with a concerning revenue growth rate of -21.21% over the same period. This decline in revenue aligns with another InvestingPro Tip indicating that the company is quickly burning through cash, which may be a point of focus for the new auditors at WWC.
On a more positive note, iClick's stock has shown significant momentum recently, with a strong return of 157.13% over the last three months. This performance suggests that despite the auditor change and financial challenges, some investors remain optimistic about the company's prospects.
For those considering a deeper dive into iClick's financials and market position, InvestingPro offers 13 additional tips, providing a more comprehensive analysis of the company's current state and potential future performance.
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