Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by question and answer session. I must advise you that today's conference is being recorded today, November 27, 2023. I would now like to hand the conference over to your first speaker today, Mr. Aaron Li, the Head of IR. Thank you. Please go ahead. Thank you, operator. Hello, everyone, and thank you for joining us for the call today. UP Fintech Holding Limited third quarter 2023 earnings release was distributed earlier today and is available on our IR website at ir.itigerup.com, as well as GlobeNewswire. On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and Chief Executive Officer, Mr. John Fei Zeng, Chief Financial Officer, Mr. Huang Lei, CEO of US Tiger Securities, and Mr. Kenny Zhao, our Financial Controller. Mr. Wu will give an overview of our business operations and discuss corporate highlights. Mr. Zeng will then discuss our financial results. They will both be available to answer your questions during the Q&A session that follows their remarks. Now, let me cover the safe harbor. The statements we are about to make contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. For more information about factors could cause actual results to materially differ from those in the forward-looking statements, please refer to our Form 6-K furnished today, November 27th, 2023, and our annual report on Form 20-F, filed on April 26, 2023. We undertake no obligation to update any forward-looking statement except as required under applicable law. It is my pleasure to now introduce our Chairman and Chief Executive Officer, Mr. Wu. Mr. Wu will make remarks in Chinese, which will be followed by English translation. Mr. Wu, please go ahead with your remarks. Hello, everyone. Thank you for joining the Tiger Brokers third quarter Hello, everyone. Thank you for joining the Tiger Brokers third quarter 2023 earnings conference call. In the third quarter, we saw improvement in both commission and interest-related income. As a result, total revenue was $70 million, an increase of 6.2% quarter-over-quarter and 26.6% year-over-year. On the bottom line, as we started to see more operating leverage, net income attributable to UP Fintech was $13.2 million, a slight increase from the previous quarter and approximately four times that of the same quarter of last year. Non-GAAP net income attributable to UP Fintech was $60 million, up 4.3% from second quarter of this year, and an increase of 141% from the same quarter of last year. We are glad to see a consistent quarter-over-quarter growth in the company's bottom line for all three quarters this year. Total non-GAAP net income of the first three quarters of this year was $41 million, already exceeding the combined full year non-GAAP net income of 2021 and 2022. We are confident in our business model to be adaptable in different market environments and regulatory framework. In the third quarter, we added 24,604 new funded accounts, bringing the total number of new funded accounts in the first three quarters of this year to over 84,000. Total number of funded accounts at the end of the third quarter reached 865,000, representing a growth of 15% compared to the same quarter of last year. In terms of total client assets, the trend of asset inflow remains strong, with net inflow over $1.5 billion in the third quarter. After neutralizing the impact from mark-to-market loss, total client assets in this quarter increased by 9.3% quarter-over-quarter and 45.4% year-over-year, reaching $18.9 billion. Specifically, in the Singapore market, net inflow from local users remains stable and strong. In Singapore, the average net asset inflows of our newly acquired clients in the third quarter were approximately $10,000, and we see similar trend in terms of net asset inflows from previous quarterly cohort groups. This demonstrates our ability to attract high quality new users in Singapore, and solidify our leading position in the local market. We continue to add new products on our platform to enhance user experience, which we believe is the key to our long-term success. In the third quarter, the Tiger community introduced the Trading Sparks feature. Users can follow best-performing traders on our platform and leverage their trading ideas for investment opportunities. Additionally, on the wealth management business, following the launch of U.S. dollar and Hong Kong dollar money market fund on Tiger Brokers earlier this year, we recently added U.S. Treasury to our wealth management platform in Singapore. We anticipate that launching of this new feature for our Hong Kong users in December. Our To B business continues to perform well. In investment banking, we underwrote four U.S. and Hong Kong IPOs in the third quarter, including Earlyworks and Keep. In our ESOP business, we added 27 new clients in the third quarter, bringing the total number of ESOP clients served to 505 for the end of the third quarter of 2023, increased by 29% year-over-year. Now, I would like to invite our CFO, John, to go over our financials. Hello, everyone. Thanks, Tian and Aaron. Let me go through our financial performance for the third quarter. All numbers are in U.S. dollar. Total revenue was $70.1 million this quarter, increased 6.2% quarter-over-quarter, and 26.6% year-over-year. Both commission income and interest related income saw a sequential increase this quarter. Cash equity take rate was 6.1 bps this quarter, slightly decreased from last quarter. Within commission revenue, about 60% comes from cash equities, 30% from options, and the rest comes from futures and other products. Now, on cost. Interest expense was $12.1 million, increased 182% from the same quarter of last year, in line with the rate hike. Execution and clearing expense were $2.4 million, decreased 26% from the same period of last year, primarily due to more self-clearing in U.S. and Hong Kong securities. Employee compensation and benefits expense were $26 million, an increase of 8% year over year due to an increase in global headcounts. Depreciation expense decreased 10% to $2.2 million, as the depreciation of the headquarters office decoration expense has been completed. Communication and market data expense were $7.6 million, an increase of 16% year over year due to the increase in user base. Marketing expense were $5.2 million this quarter, decreased 30% year over year, as we remain prudent with our marketing approach in the third quarter. General and administrative expense were $5.4 million, an increase of 55% year-over-year, due to increase in professional service fees. Total operating expense were forty-eight point eight million, slightly increased 3.1% from the same quarter of last year. As a result, both GAAP and non-GAAP bottom line increased quarter-over-quarter and year-over-year. GAAP net income was $13.2 million, slightly increased 1% from the previous quarter, and about four times that of the same quarter of last year. ...non-GAAP net income was $16 million, up 4% from the previous quarter, and increased 141% versus the same quarter of last year. Now we have concluded our presentation. Operator, please open the line for Q&A. Thanks. Thank you. We will now begin the question and answer session. To ask a question on the phone, please press star one one and wait for your name to be announced. If you'd like to cancel your request, please press star one one again. One moment for the first question. First question comes from the line of Han Pu from CICC. Please go ahead. Hello, management. Thank you for giving me this opportunity to ask a question. I am an analyst from CICC, Han Pu. I have two questions to ask. The first question is to ask management to break down for us the regional distribution of new funded users in the third quarter. The second question is we see that since this year, actually the performance on the profit side has improved particularly significantly. If looking forward to next year, from a strategic perspective, how do we balance the stability and growth of this profit? Do we have plans to enter this new region for business expansion? I will also translate this. Thanks, management, for taking my question. I have two questions. Firstly, could you please give us the regional breakdown of the new funded accounts in Q3? And secondly, we have seen the obvious improvement in the bottom line this year. Strategically, how do you balance the growth and the profitability in 2024? Do we have any plans for new markets? Thank you. Thank you. The first question is about the regional breakdown. Overall, in the third quarter, among the new funded users, approximately 55% come from the Singapore region, from the Hong Kong, Australia and New Zealand, and United States regions, the contributions each account for about 15%. Okay, so for first question, among the new funded accounts in the third quarter, approximately 55% came from Singapore, while contributions from Hong Kong, Australia, New Zealand region, and the United States accounted for around 15% each. 第二个问题关于这个如何平衡利润和增长。那么今年我们在利润端前三个季度都是环比上升，累计超过了$41 million。那新增用户，入金用户数截止到目前，也已经完成了全年100,000入金用户的目标。我们三季度客户资产环比上涨9.3%，同比上升了45.4%，达到了$18.9 billion。所以从数据来看，那公司是在实现业务规模增长的同时，也大幅改善了我们的盈利能力。那我认为从长远来看，用户规模和用户资产的增长和利润端的增长肯定是这个相辅相成的。仅仅通过费用端的这个管控，特别是可变成本，比如说清算费用已经处于行业领先的低水平情况下，是很难保持利润持续增长的。所以重点还是要获取更多的优质用户，更多的托管资产来提升收入，打开我们利润的这个空间。那这也是，这个问题也是我们一直在思索的问题：怎么通过可控的成本增加，比如获取成本，得到更高的收入回报，这也是我们会把像ROI还有回本周期，作为各个国家主体考核目标的这个原因。那目前来看，未来一年之内，我们依然会把重点放在现有市场的拉新，还有交易促活，提升ARPU值，带动利润单的持续增厚，为公司未来在更多市场的展业提供足够的子弹和空间。那至于明年是否进入新的市场，那我们会在评估公司各方面资源之后，再来把握全球化扩展的节奏跟方向。谢谢。 We've seen quarterly growth on the bottom line throughout the first three quarters of this year, accumulating over $41 million. As of now, the number of new funded clients has already exceeded our annual guidance of 5,000, and total client assets by the end of the third quarter have increased by 9.3% quarter-over-quarter, and 45.4% year-over-year, reaching $18.9 billion. So we have improved our profitability while growing user base and asset under custody. I believe the growth of user base and client assets goes hand in hand with the profit growth in the long run. There is a cap on how much cost saving can help profitability, especially when some variable costs, for example, our clearing expenses, are already one of the lowest in the industry. So the key is still to acquire more high-quality users, get more assets on our platform to increase total revenue and net income. It's a great question that you asked, and it's also a question we keep asking ourselves: how to achieve better operating leverage if we incur more costs like CAC? That's why we use ROI and payback period as important metrics to evaluate our different subsidiaries. As of now, our focus will continue to be on driving sustained profit growth in the existing market with manageable investment, so we can build buffer for company's future expansion. We will carefully evaluate all aspects of company's resources before determining the pace and direction of new markets we want to enter. Thank you....The questions. One moment for the next question. Next up, we have the lines from Cindy Wang from China Renaissance. Please ask your question. 好的，谢谢管理层给了这个提问的机会。那我这边有两个问题想请教，第一个问题是关于，因为目前市场已经预期这个美联储的加息周期已经接近尾声，那也许明年中期会开始进入这个降息的一个周期。那面对这种可能的一个变化，公司的战略和运营中会，怎么样去做一个调整，来保持目前或者甚至更高的一个profit margin？那我第二个问题想请问一下，就是我们看到第三季度的一个blended take rate相比第二季度环比有所下降，那可不可以，跟我们说一下背后的原因为何？那我很快翻译一下我的问题。So thanks management taking my question. So I have two question. First question is market expects the Fed rate hike cycle is coming to the end, and they start to cut interest rate in the mid 2024. So based on this scenario, how would you adjust strategy and operations to maintain the current or even higher profit margin? The second question is, the blended take rate in third quarter was down sequentially, so what's the reasoning behind it? Thank you. 第三个问题，关于这个降息周期影响。那我们认为，券商的业务模式有一点很好的地方是，我们对于利率的波动是具有对冲效应的。那基于过去几年的数据，我们可以看到佣金收入和利息相关收入，有时候会朝着相反的方向变动。在低利率的环境下，交易收入表现得较为强劲，那随着利率的上升，交易活跃度会有所放缓，但利息相关收入呢会有所增强。那此外，我们大部分的利息收入是来自于金融的业务，在这些业务中，我们主要赚取的是息差，所以我们的利息收入受降息影响的程度是相对有限的。当然，我们也会根据不同的市场环境来调整产品和运营的策略。例如，在过去一年高利率的环境下，我们陆续推出了美元、港币、货币基金，以及投资美国国债的财务管理产品，也通过现金管理和金融业务获得了更多的利息收入。那未来随着降息带来的市场维度好转，更多的资金会从固收类的投资转移到权益类的投资，那我们也会根据市场情况进行针对性的投教和推广。那从我们来讲，我们认为未来的降息会是一个积极的信号，市场活跃度提升带来的成交量的改善，是更有望在收入端形成贝塔效应增长的。谢谢。 Okay, I'll transfer answer for first question. We think a good thing about the broker dealer business model is trading velocity in general, nature hedge with interest rate. When risk go up, velocity and trading commission tend to go down and vice versa. In our business, a big chunk of interest income comes from margin financing and securities lending, where we earn a relatively stable interest spread. Therefore, the impact of interest rate cuts on our interest income will be fairly limited. And of course, we will also adjust our product and operational strategy based on different market backdrop. For example, in the past year with the Fed rate rate hikes, we introduced more yield products such as U.S. dollar and Hong Kong dollar money market funds, and features for investments in U.S. Treasury. We also generated more interest income through treasury management and margin financing, securities lending business. But in the future, as market activity improves with interest rate cuts, more client assets will likely to, you know, shift from fixed income investment to equity investment. We will roll out more tailored investor education and promotions based on market condition. So overall, we still consider future interest with cuts as a positive signal. Given increased market activity is more likely to generate beta effect growth on our top line. OK, Cindy, 我来回答一下你的，第二个问题啊，就是关于那个blended take rate相比二季度有所下降。那整体take rate的下降呢，主要是因为美股正股交易take rate的波动。三季度市场活跃度呢，相比二季度呢有所改善，所以说美股正股的交易股数呢和交易额呢，环比都有所上升，其中交易额的上升更为显著。因为在我们的那个交易额里面呢，像特斯拉、英伟达这类美国当地的股价的交易量呢占比是比较高的。所以说在三季度，用户在交易这些股票的时候呢，他们的交易额的环比上升呢高于交易笔数的上升，而我们对美股正股呢，是按照每交易一股来收费的，所以说增速更快的交易额，就是那个分母部分呢，会略微拉低take rate。那我简单地，翻译一下。So the slight decrease in blended take rate was due to high price names like Tesla and NVIDIA, accounting for a big portion of our trading volume in the third quarter. So the increase in share price of those names outpaced the increasing number of shares traded. Since we charge commission by number of shares, the blended take rate came down slightly versus last quarter. Even our pricing remained the same. Thanks. Thank you for the questions. One moment for the next questions. The next question comes from the line of Allen Wang from Citibank. Please go ahead. 管理层晚上好，非常感谢给我这个提供的机会。我今天有两个小问题想请教一下，第一个是关于新加坡的，我们就关注到咱们就有一家友商，因为最近几个季度呢，在新加坡都保持了不错的入金客户增长，然后在本地这个市场份额也在逐渐提升。那新加坡作为咱们老虎证券最核心的海外市场，想请教一下，就是管理层如何看待当地市场这个竞争格局的变化，然后往后看的话，咱们对新加坡市场的拓展有没有什么一些新的战略上的规划？然后第二个问题想请教一下关于加密，加密货币这边的，就是之前看到新闻报道说，咱们老虎证券是有意在香港申请加密货币的相关牌照的，就想请教一下这方面我们有没有什么新的进展？谢谢。我很快发言一下我的问题。Thanks, management, for taking my question. This is Allen from Citi Research. I have two questions today. The first one is about the Singapore market. Recently we have seen one of our Tiger competitors building up a growth momentum in Singapore with decent paying customer growth and market share gain during the third quarter. As Singapore is Tiger's core markets, wondering management have any comments on the latest local market share trends and our forward-looking basis, could management give us some color or updates on the latest growth strategy for the Singapore market? And the second question is about crypto trading license. I'm wondering if management have any updates on the license application. Thanks. First question about the Singapore market. The Singapore market has always served as an important profit unit for Tiger. For per capita CC, in the first three quarters, it remained at a low level within $10,000. In the first three quarters of this year, Singapore's net profit also continuously achieved a double-digit compound growth rate. In addition, due to the success of the Singapore market, it also elevated Tiger's visibility in the entire Southeast Asian market. This provided us with a very good foundation and brand advantage for entering other Southeast Asian countries in the future. In the third quarter, the group's overall net inflow still maintained a strong trend, obtaining net inflow of about $1.5 billion. Singapore also made an important contribution among them. The average net inflow for new inflow users in the quarter was around $10,000. More importantly, the new inflow users obtained in each of the past quarters were all in a net inflow state in the third quarter. Singapore's asset users have a retention rate as high as 99%. The positive stock trading volume rose about 10% quarter-over-quarter in the third quarter. The new stock trading volume ranks first among all Singapore digital brokers. Therefore, whether from strategic position, profitability, user inflow trend, and retention rate, we are satisfied with Tiger's development in Singapore. The reason we could achieve success locally is inseparable from our insistence on focusing on user quality and striving for ROI. In the future, we will continue this strategy. While ensuring profitability, we attract high-quality local users. So for the first question regarding our business in Singapore, the Singapore market has been a key profit driver for Tiger, thanks to our low average CC, which staying below $200 in the first three quarters. We've seen a double-digit compound growth on the bottom line throughout the first three quarters of this year. Also, the success in Singapore has boosted Tiger's reputation in the entire Southeast Asian market, brings us solid foundation and brand advantage for future entry into, you know, those, Southeast Asian market. In the third quarter, the overall net asset inflow continued its strong momentum with around $1.5 billion. Singapore played a big part in it, with average net asset inflows of our newly acquired clients in the third quarter, reaching around $10,000. More importantly, our existing users from Singapore market showed a similar trend in terms of net asset inflows. The retention rate of our local users with assets remained at 99%, and the cash equity trading volume, so quarter-over-quarter increased about 10%, and we rank at number one among all online brokers in Singapore in terms of Singapore shares trading volume. So whether we are looking at our strategic position, profitability, net inflows of client assets, or retention rates, we are comfortable with where we stand in Singapore. Our success locally is closely tied to our focus on user quality and our commitment to balancing ROI. So looking ahead, we will continue this strategy, ensuring profitability while attracting high quality users. Thank you! OK, Allen，那我来回答一下你关于crypto这个问题。就是加密货币呢，我们发现呢，在全球世界范围内呢，有越来越多受众群体，啊我们也觉得crypto呢，也在变成一个非常重要的一个资产类别。而且最近我们看得见，其实这两年的新加坡、香港以及美国啊，对虚拟货币交易的接受度和监管的要求呢，也在日益的完善。主流的投资机构，譬如说像BlackRock，他们呢，也都在进入这个行业。那老虎呢，我们基于本身科技型券商的基因，产业团队的knowhow，以及和监管银行多年积累的良好沟通呢，未来也肯定会进入该业务领域的，进一步丰富我们的产品，给用户提供更多的投资选择。那从牌照申请的这个status来讲呢，我们是在全球啊，有监管framework的地方呢，都在多地申请牌照。譬如呢，美国呢，我们正在拿每一个州的MSB的牌照，然后新加坡呢，我们也早就递交了这个PSA的申请。那在今年六月，香港SFC关于crypto的consultation出来以后呢，我们也在第一时间递交了牌照的申请，所以说期待明年会有一些结果。So in our view, crypto is becoming a very important asset class. It's a natural extension of business as a broker dealer to add a new asset class, and the Web3 technology is also integrated with Tiger's fintech background and knowhow. So we are applying for multiple licenses across regions. For example, in the U.S., we are applying for MSB license in each state. In Singapore, we are applying for PSA license. In Hong Kong, we already submitted our VATP application following SFC's consultation back in June. So hopefully by next year, we will get approval and offer crypto trading to investors. Thank you! ... The questions. Now I would like to end, hand the call back to management for closing remarks, please. I would like to thank everyone for joining our call today. I'm now closing the call on behalf of the management team here at Tiger. We do appreciate your participation to this call. If you have any further questions, please reach out to our investor relations team. This concludes the call, and thank you very much for your time. Thank you! Ladies and gentlemen, that concludes the conference call for today. You may now disconnect.