2024-11-12 UP Fintech Holding Limited (TIGR) Q3 2024 Earnings Call Transcript

UP Fintech Holding Limited (NASDAQ:TIGR) Q3 2024 Earnings Conference Call November 12, 2024 8:00 AM ET

UP Fintech Holding Limited (NASDAQ:TIGR) 2024 年第三季度收益电话会议 2024 年 11 月 12 日上午 8:00 ET

Company Participants 公司参与者

Aaron Li - Head, Investor Relations

Aaron Li - 负责人，投资者关系

Wu Tianhua - Chairman & Chief Executive Officer

吴天华 - 董事长兼首席执行官

John Zeng - Chief Financial Officer

John Zeng - 首席财务官

Conference Call Participants

电话会议参与者

Cindy Wang - China Renaissance

Cindy Wang - 华兴资本

Emma Xu - Bank of America Securities

Emma Xu - 美国银行证券

Operator 操作员

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation, followed by a question-and-answer session. I must advise you that this conference is being recorded today, November 12, 2024.

女士们，先生们，感谢您的支持，欢迎参加 UP Fintech Holding Limited 2024 年第三季度收益电话会议。目前，所有参与者都处于只听模式。会议将包括一个演示，随后是问答环节。我必须提醒您，本次会议正在录音，日期为 2024 年 11 月 12 日。

I would now like to hand the conference over to your first speaker today, Mr. Aaron Li, the Head of Investor Relations. Thank you. Please go ahead.

现在，我想把会议交给今天的第一位发言人，投资者关系负责人李先生。谢谢。请开始。

Aaron Li

Thank you, Mao. Hello, everyone, and thank you for joining us for the call today. UP Fintech Holding Limited's third quarter 2024 earnings release was distributed earlier today and is available on our IR website at ir.itigerup.com, as well as GlobeNewswire services.

谢谢，毛。大家好，感谢大家今天参加我们的电话会议。UP Fintech Holding Limited 2024 年第三季度的收益报告已于今天早些时候发布，并可在我们的投资者关系网站 ir.itigerup.com 以及 GlobeNewswire 服务上查阅。

On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and Chief Executive Officer; Mr. John Zeng, Chief Financial Officer; Mr. Huang Lei, CEO of US Tiger Securities; and Mr. Kenny Zhao, our Financial Controller.

今天参加电话会议的有 UP Fintech 的董事长兼首席执行官吴天华先生；首席财务官 John Zeng 先生；美国老虎证券的首席执行官黄磊先生；以及我们的财务总监 Kenny Zhao 先生。

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.

吴先生将概述我们的业务运营并讨论公司亮点。然后，曾先生将讨论我们的财务业绩。在他们发言后的问答环节中，他们都将回答您的问题。

Now, let me cover the safe harbor. The statements we are about to make contain forward-looking statements within the meaning of the US 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 statements.

现在，让我介绍一下安全港。我们即将发表的声明包含 1995 年美国私人证券诉讼改革法案中定义的前瞻性声明。许多因素可能导致实际结果与任何前瞻性声明中包含的内容有实质性差异。

For more information about factors that could cause actual results to materially differ from those in the forward-looking statements, please refer to our Form 6-K furnished today, November 12, 2024, and our annual report on Form 20-F filed on April 22, 2024. We undertake no obligation to update any forward-looking statement except as required under applicable law.

有关可能导致实际结果与前瞻性声明中的结果有实质性差异的因素的更多信息，请参阅我们今天（2024 年 11 月 12 日）提交的 6-K 表格和我们于 2024 年 4 月 22 日提交的 20-F 表格年度报告。除适用法律要求外，我们不承担更新任何前瞻性声明的义务。

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.

现在我很高兴介绍我们的董事长兼首席执行官吴先生。吴先生将用中文发言，随后会有英文翻译。吴先生，请开始您的发言。

Wu Tianhua 吴天华

[Foreign Language] [外语]

[Interpreted] Hello, everyone. Thank you for [joining] (ph) Tiger Brokers' third quarter 2024 earnings conference call.

大家好。感谢大家参加老虎证券 2024 年第三季度财报电话会议。

[Foreign Language] [外语]

[Interpreted] In the third quarter, driven by expanded client base, comprehensive product offerings and active market backdrop in the US, total trading volume reached US$163 billion, cash equity trading volume was US$41.4 billion, reflecting a quarter-over-quarter increase of 54% and 24%, respectively.

第三季度，由于客户基础扩大、全面的产品供应和美国活跃的市场环境，总交易量达到 1630 亿美元，现金股票交易量为 414 亿美元，分别环比增长 54%和 24%。

Commission income reached US$41.2 million, increased 21% quarter-over-quarter and 78% year-over-year, the highest in the past three years. The uptick in market activity also contributed to a rise in marketing financing and securities lending business, which increased 29% quarter-over-quarter and doubled year-over-year, reaching US$4.5 billion at the end of the third quarter. Despite ongoing rate cut cycle, interest income increased 9% quarter-over-quarter to US$48 million.

佣金收入达到 4120 万美元，环比增长 21%，同比增长 78%，为过去三年来的最高水平。市场活动的增加也推动了市场融资和证券借贷业务的增长，环比增长 29%，同比翻倍，第三季度末达到 45 亿美元。尽管利率削减周期持续，利息收入环比增长 9%，达到 4800 万美元。

Our total revenue for the third quarter was all-time high of US$101 million, a quarter-over-quarter increase of 16% and year-over-year increase of 44%. GAAP and non-GAAP net income attributable to UP Fintech was US$17.8 million and US20.1 million this quarter, both exceeded the total amount for the first half of this year and increased 34% and 26% year-over-year, respectively. Also, we are glad to see our operating profit margin increased to 26% in the third quarter, indicating ongoing improvement in the operating leverage of our business model.

我们第三季度的总收入创下历史新高，达到 1.01 亿美元，环比增长 16%，同比增长 44%。本季度归属于 UP Fintech 的 GAAP 和非 GAAP 净收入分别为 1780 万美元和 2010 万美元，均超过今年上半年的总额，同比增加 34%和 26%。此外，我们很高兴看到第三季度的营业利润率提高到 26%，这表明我们的商业模式的经营杠杆正在持续改善。

管理能力一般，IBKR是72%，SCHW是42%。

[Foreign Language] [外语]

[Interpreted] In the third quarter, we added 50,500 newly funded accounts, representing a 3% sequential increase and a 105% increase year-over-year. Singapore and Southeast Asia region were the primary contributors. The number of funded accounts as of the end of the third quarter reached 1,000,300, increased 19% year-over-year. In the first three quarters of this year, we added a total of 128,000 newly funded accounts. By now, we've already achieved our annual guidance of acquiring 150,000 newly funded accounts.

在第三季度，我们新增了 50,500 个新资助账户，环比增长 3%，同比增长 105%。新加坡和东南亚地区是主要贡献者。截至第三季度末，资助账户数量达到 1,000,300 个，同比增长 19%。今年前三个季度，我们总共新增了 128,000 个新资助账户。到目前为止，我们已经实现了年度指导目标，即获取 150,000 个新资助账户。

In terms of total client assets, retail clients' net asset inflow remained strong at US$1 billion for this quarter. Total clients' assets increased by 7% quarter-over-quarter and 116% year-over-year to $40.8 billion, setting another historic high. We are glad to see that our client assets have now risen for eight consecutive quarters and kept setting new records for the past four consecutive quarters. Notably, in addition to steady growth in client assets from Singapore market, we've seen over 25% quarter-over-quarter increase in client assets from new markets like Hong Kong, Australia, New Zealand and the US.

就总客户资产而言，本季度零售客户的净资产流入保持强劲，达到 10 亿美元。总客户资产环比增长 7%，同比增长 116%，达到 408 亿美元，再创历史新高。我们很高兴看到我们的客户资产已经连续八个季度上升，并在过去四个季度连续创下新纪录。值得注意的是，除了新加坡市场的客户资产稳步增长外，我们还看到来自香港、澳大利亚、新西兰和美国等新市场的客户资产环比增长超过 25%。

[Foreign Language] [外语]

[Interpreted] In the third quarter, we continued to upgrade our product offerings on our platform to enhance user experience. In September, we officially launched Hong Kong stock options and Hong Kong short-selling features on our platform. And in early November, we collaborated with Hong Kong Exchange to upgrade the Hong Kong stock option feature by offering weekly contracts in addition to monthly contracts to better meet investors' trading and risk management needs, allowing them to trade based on short-term events.

在第三季度，我们继续升级平台上的产品，以提升用户体验。9 月，我们在平台上正式推出了港股期权和港股卖空功能。11 月初，我们与香港交易所合作，通过提供周合约和月合约来升级港股期权功能，以更好地满足投资者的交易和风险管理需求，使他们能够根据短期事件进行交易。

Additionally, Tiger Boss debit card is gaining more popularity since its launch in Singapore. So, we upgraded the product to include T+0 automatic subscription and redemption feature for Tiger Vault, our wealth management product. The integration allows users to manage their investment portfolios more conveniently, seamlessly bridging daily spending, wealth management and stock investment. Moreover, in October, we enhanced our overnight trading capabilities. Unfilled night session orders will be automatically passed on to the pre-market and regular trading session to ensure user experience and execution quality.

此外，自在新加坡推出以来，Tiger Boss 借记卡越来越受欢迎。因此，我们升级了产品，增加了 T+0 自动认购和赎回功能，用于我们的财富管理产品 Tiger Vault。该集成使用户能够更方便地管理其投资组合，无缝连接日常消费、财富管理和股票投资。此外，在 10 月份，我们增强了隔夜交易能力。未成交的夜盘订单将自动传递到盘前和常规交易时段，以确保用户体验和执行质量。

很不错的功能。

[Foreign Language] [外语]

[Interpreted] Our 2B business continues to perform well. In investment banking, we underwrote 13 US and Hong Kong IPOs in the third quarter, including NIP Group and Voicecomm Group, and we served as the exclusive lead bank for NIP Group and XCHG US IPO. In our ESOP business, we added 18 new clients in the third quarter, bringing the total number of ESOP clients served to 597 by the end of the third quarter of 2024, increased by 18% year-over-year.

[解读] 我们的 2B 业务继续表现良好。在投资银行业务中，我们在第三季度承销了 13 个美国和香港的 IPO，包括 NIP 集团和 Voicecomm 集团，并担任 NIP 集团和 XCHG 美国 IPO 的独家主承销商。在我们的 ESOP 业务中，我们在第三季度新增了 18 个客户，到 2024 年第三季度末，ESOP 客户总数达到 597 个，同比增长 18%。

[Foreign Language] [外语]

[Interpreted] Now, I would like to invite our CFO, John, to go over our financials.

现在，我想邀请我们的首席财务官约翰来审阅我们的财务状况。

John Zeng

All right. Thanks, Tianhua and Aaron. Let me go through our financial performance for the third quarter. All numbers are in US dollar.

好的。谢谢天华和亚伦。让我来回顾一下我们第三季度的财务表现。所有数字均为美元。

Thanks to our expanded user base and robust market activities, we saw healthy growth in all top-line items this quarter. Commissions income were US$41.2 million, increased 21% quarter-over-quarter and 78% year-over-year. Interest-related income were US$48 million this quarter, increased 9% quarter-over-quarter and 25% year-over-year.

由于我们扩大的用户基础和强劲的市场活动，本季度我们在所有主要项目上都实现了健康增长。佣金收入为 4120 万美元，环比增长 21%，同比增长 78%。本季度利息相关收入为 4800 万美元，环比增长 9%，同比增长 25%。

As a result, total revenue increased 16% quarter-over-quarter and 44% year-over-year to reach an all-time high at $101 million. Cash equities take rate was 6.4 bps this quarter, slightly decreased from 6.7 bps of last quarter. Within commission revenue, about 63% comes from cash equities, 30% from options, and the rest from futures and other products.

因此，总收入环比增长 16%，同比增长 44%，达到创纪录的 1.01 亿美元。本季度现金股票的费率为 6.4 个基点，略低于上季度的 6.7 个基点。在佣金收入中，大约 63%来自现金股票，30%来自期权，其余来自期货和其他产品。

Now, on to cost. Interest expense was $15.7 million, increased 29% from the same quarter of last year, in line with the growth of margin and securities lending balance.

现在，谈到成本。利息支出为 1570 万美元，比去年同期增长 29%，与利润率和证券借贷余额的增长一致。

Execution and clearing expense were $3.5 million, increased 48% from the same period of last year, primarily due to an increase in our trading volume, and we keep improving our clearing efficiency. Cash equity clearing expense as a percentage of cash equity commissions is about 3.6% this quarter and remains one of the lowest in the industry.

执行和清算费用为 350 万美元，比去年同期增长 48%，主要是由于我们的交易量增加，并且我们不断提高清算效率。本季度现金股票清算费用占现金股票佣金的比例约为 3.6%，仍然是行业中最低的之一。

Employee compensation and benefits were $28.8 million, an increase of 11% year-over-year due to headcount increase to strengthen overseas growth and R&D.

员工薪酬和福利为 2880 万美元，同比增长 11%，原因是增加了员工人数以加强海外增长和研发。

Occupancy, depreciation, and amortization expense slightly decreased 3% to $2.2 million.

占用、折旧和摊销费用略微下降 3%至 220 万美元。

Communication and market data expense were $9.7 million, an increase of 28% year-over-year due to the increase in user base and IT-related services.

通信和市场数据费用为 970 万美元，由于用户群和 IT 相关服务的增加，同比增加了 28%。

Marketing expense increased 59% year-over-year to $8.2 million this quarter. We see market backdrop was supportive for more customer acquisition and branding campaigns while maintaining ROI targets.

本季度营销费用同比增长 59%，达到 820 万美元。我们看到市场背景支持更多的客户获取和品牌推广活动，同时保持投资回报率目标。

General and administrative expenses were $6.9 million, an increase of 27% year-over-year, due to more professional service fee and general expense incurred alongside with our business expansion.

一般和行政费用为 690 万美元，同比增长 27%，主要由于随着业务扩展，专业服务费和一般费用增加。

Total operating costs were $59.3 million, an increase of 22% from the same quarter of last year.

总运营成本为 5930 万美元，比去年同期增长了 22%。

Our bottom-line increased quarter-over-quarter and year-over-year on a GAAP and a non-GAAP basis. GAAP net income were $17.8 million, increase of 585% quarter-over-quarter and 34% year-over-year, while non-GAAP net income were $20.1 million, increased 287% quarter-over-quarter and 26% year-over-year.

我们的底线在 GAAP 和非 GAAP 基础上环比和同比都有所增加。GAAP 净收入为 1780 万美元，环比增长 585%，同比增长 34%，而非 GAAP 净收入为 2010 万美元，环比增长 287%，同比增长 26%。

Now, I have concluded our presentation. Operator, please open the line for Q&A. Thanks.

现在，我已经结束了我们的演示。操作员，请打开问答环节。谢谢。

Question-and-Answer Session

问答环节

Operator 操作员

Thank you. [Operator Instructions] Our first question comes from the line of Cindy Wang from China Renaissance. Please go ahead. Your line is open.

谢谢。[操作说明] 我们的第一个问题来自中国复兴的 Cindy Wang。请继续。您的线路已打开。

Cindy Wang

[Foreign Language] [外语]

Thanks for taking my call -- my questions, and I have two questions here. First one is, please give us the breakdown of the regional mix of newly funded accounts.

感谢接听我的电话——我的问题，我这里有两个问题。第一个是，请给我们提供新资助账户的地区构成细分。

And the second question is the commission income up quarter-over-quarter nicely in third quarter. The blended take rate and cash equity take rate both down sequentially. What is the reason behind it? Does Nvidia stock split has impacted your take rate? And what is the Q4 trend? Thank you.

第二个问题是，第三季度佣金收入环比增长得很好。然而，整体和现金股票的佣金率都环比下降。原因是什么？英伟达的股票拆分是否影响了你的佣金率？第四季度的趋势如何？谢谢。

Wu Tianhua 吴天华

[Foreign Language] [外语]

[Interpreted] In the third quarter, about 60% of our newly funded users came from Singapore and Southeast Asia, about 15% each from Australia and New Zealand region, and Hong Kong market, more than 5% were from the US market. Thank you.

在第三季度，我们约 60%的新资助用户来自新加坡和东南亚，约 15%分别来自澳大利亚和新西兰地区，以及香港市场，超过 5%来自美国市场。谢谢。

John Zeng

So, first of all, the decline in blended take rate is largely due to an increase in future trading volume. Since futures are kind of based on nominal value instead of contract value, so the trading volume will amplify in the third quarter. That's why we saw a 24% increase in stock trading volume, while total trading volume jumped to 54%.

因此，首先，混合费率的下降主要是由于期货交易量的增加。由于期货是基于名义价值而不是合约价值，因此第三季度的交易量将会放大。这就是为什么我们看到股票交易量增加了 24%，而总交易量跃升至 54%。

There are several reasons for the drop in cash equity take rate. Number one is NASDAQ had a general upward trend in Q3, which pushed average stock price higher, so lower the take rate. And also, the second reason is the ADR in the third quarter accounted for only 10% of the trading volume, while the major US stock, especially Magnificent 7 increased a lot, which further raised the average trading price and lowered the take rate. And also, even though in Hong Kong, our trading volume has gone up a lot during the end of third quarter, but in Hong Kong, we offer zero commission, zero platform fee. So, the Hong Kong trading volume increase didn't really help much with the -- help much on the take rate.

现金股票佣金率下降有几个原因。首先，第三季度纳斯达克总体呈上升趋势，这推动了平均股票价格上升，从而降低了佣金率。其次，第三季度ADR（美国存托凭证）仅占交易量的10%，而美国主要股票，尤其是“辉煌七巨头”增长显著，这进一步推高了平均交易价格并降低了佣金率。此外，尽管在香港，我们的交易量在第三季度末有了大幅上升，但在香港我们提供零佣金、零平台费服务。因此，香港交易量的增加对佣金率的帮助并不大。

In regards to Nvidia stock split, it does help the take rate a little bit. The impact isn't that huge. Several reasons, first of all is, Nvidia completed stock split in early June and the trading volume for Nvidia in June was much higher than in April and May. By second quarter, the average trading price was already below US$400 on our platform, not the US$1,000 level. In Q3, the average price was about US$120. So, in terms of price, the impact is only a bit over three times.

关于英伟达的股票拆分，它确实对接受率有一点帮助。影响并不是很大。有几个原因，首先是，英伟达在六月初完成了股票拆分，六月的交易量比四月和五月高得多。到第二季度，我们平台上的平均交易价格已经低于 400 美元，而不是 1000 美元的水平。在第三季度，平均价格约为 120 美元。因此，就价格而言，影响仅略高于三倍。

Another factor is fractional share. Before the split, a lot of users traded Nvidia through fractional shares. We charge 1% on trading volume for fractional shares, so this helped the take rate. After the split, the trading volume through fractional shares dropped.

另一个因素是零碎股份。在拆分之前，很多用户通过零碎股份交易英伟达。我们对零碎股份的交易量收取 1%的费用，所以这提高了收益率。拆分后，通过零碎股份的交易量下降了。

So, putting all this together, Nvidia take rate in Q3 was only about double what it was in second quarter. It's still a high price even after split. If we look at our US stock pricing, the post-split take rate for Nvidia is only about 2 bps, while our overall cash equity take rate is between 6 bps to 7 bps. So, it's not going to have a major impact on our overall cash equity take rate.

因此，综合来看，英伟达第三季度的提成率仅是第二季度的两倍左右。即使在拆分后，价格仍然很高。如果我们查看美国股票定价，拆分后的英伟达提成率仅约为 2 个基点，而我们的整体现金股票提成率在 6 到 7 个基点之间。因此，这不会对我们的整体现金股票提成率产生重大影响。

Aaron Li

Thanks. Mao, please move on to the next question, please.

谢谢。毛，请继续下一个问题。

Operator 操作员

Our next question comes from the line of Emma Xu from Bank of America Securities. Please go ahead. Your line is open.

接下来的问题来自美国银行证券的 Emma Xu。请继续。您的线路已打开。

Emma Xu

[Foreign Language] [外语]

So, congratulations on achieving the guidance ahead of schedule. The market conditions have been favorable since October, so could you please share the run rate for asset, for AUM, trading volume, revenue and profit, et cetera, since October? And on a quarter-over-quarter basis, the growth rate of your revenue exceeds that of profit without regard to the impairment losses of around US$13.2 million in the second quarter. So, how do you view the improvement in the operating efficiency and leverage?

因此，恭喜您提前实现了指导目标。自十月以来，市场条件一直有利，所以您能否分享一下自十月以来资产、管理资产、交易量、收入和利润等的运行率？并且在季度环比的基础上，您的收入增长率超过了利润增长率，不考虑第二季度约 1320 万美元的减值损失。那么，您如何看待运营效率和杠杆的改善？

Wu Tianhua 吴天华

[Foreign Language] [外语]

[Interpreted] In terms of our client assets, we continue to see net inflow in October, primarily driven by the contribution from our retail investors. The number of newly funded accounts has also maintained a rapid growth trend as we saw in the third quarter, allowing us to hit our annual guidance so far of 150,000 newly funded users by now.

就客户资产而言，我们在十月份继续看到净流入，主要得益于零售投资者的贡献。新资金账户的数量也保持了第三季度的快速增长趋势，使我们迄今为止达到了年度指导目标，即新增 15 万名资金用户。

Looking at our financials, October was a, let's say, standout month for us, with trading volume and commission performance reaching the highest level in our history. Both trading volume and commissions for October more than doubled the average monthly performance for the first half of this year. Although we are not yet through November yet, the trading volume is looking solid so far. For instance, on November 6, which was the US Election Day, order volume on our platform increased by about 50% compared to the October daily average, particularly for US stocks, which saw even more significant growth. Looking ahead to the remainder of Q4, there are some uncertainties related to the post-election initiatives and Federal Reserve's interest rate decisions, but overall, we are quite satisfied with how the Q4 has been shaped up so far. Thanks.

查看我们的财务状况，十月对我们来说是一个，怎么说呢，突出的月份，交易量和佣金表现达到了我们历史上的最高水平。十月的交易量和佣金都比今年上半年平均月度表现翻了一倍多。虽然我们还没有过完十一月，但到目前为止，交易量看起来很稳固。例如，十一月六日，也就是美国大选日，我们平台上的订单量比十月的日均水平增加了约 50%，尤其是美国股票，增长更为显著。展望第四季度的剩余时间，与选后举措和美联储利率决策相关的一些不确定性存在，但总体而言，我们对第四季度的表现感到相当满意。谢谢。

John Zeng

[Foreign Language] [外语]

[Interpreted] So, in the third quarter, Fed rate cuts led to a depreciation of the US dollar. As a result, our subsidiaries that don't use US dollar as their base currencies, like Singapore, New Zealand and Mainland China, saw their dollar-denominated asset lose its value, which resulted in foreign exchange losses. For the entire group, the foreign exchange loss in the third quarter was around US$5.1 million, but of course, those FX loss was non-cash and non-operating impact.

因此，在第三季度，美联储降息导致美元贬值。因此，我们那些不以美元为基础货币的子公司，如新加坡、新西兰和中国大陆，其以美元计价的资产贬值，导致外汇损失。整个集团在第三季度的外汇损失约为 510 万美元，但当然，这些外汇损失是非现金和非经营性影响。

If we look at our operating profit, it was roughly US$26 million in the third quarter. In the second quarter, after excluding US$13.2 million one-off impairment, the operating income was about like US$18 million. This means we saw about 45% growth quarter-over-quarter, which is significantly higher than the 16% growth we saw in the top-line. This indicates our overall operating leverage has improved.

如果我们看一下我们的营业利润，第三季度大约是 2600 万美元。第二季度，在排除 1320 万美元的一次性减值后，营业收入大约为 1800 万美元。这意味着我们环比增长约 45%，显著高于我们在总收入中看到的 16%增长。这表明我们的整体经营杠杆有所改善。

The reason we were able to achieve this aside from our business model is that we have been very prudent with our fixed cost. Both labor and G&A expenses have remained relatively stable, while variable costs like clearing and customer acquisition costs may rise with increased market activities, but both of our clearing fee and average CAC remains at industry-leading low levels. Thanks.

除了我们的商业模式之外，我们能够实现这一目标的原因是我们对固定成本非常谨慎。劳动力和一般管理费用保持相对稳定，而清算和客户获取成本等可变成本可能会随着市场活动的增加而上升，但我们的清算费用和平均客户获取成本仍然处于行业领先的低水平。谢谢。

Aaron Li

Thanks. Operator, let's move on to the next question, please.

谢谢。操作员，请让我们继续下一个问题。

Operator 操作员

Thank you. Our next question comes from the line of [Hua Fan] (ph) from CICC. Please go ahead. Your line is open.

谢谢。我们的下一个问题来自中金公司的[樊华]（音）。请继续。您的线路已打开。

Unidentified Analyst 未具名分析师

[Foreign Language] [外语]

I have two questions here. The first one is about the Hong Kong market. We see the market velocity rebounded since October. So, would you please share more color on our current business progress in Hong Kong market? What's the impact on our customer acquisition and trading volume in Hong Kong market?

我这里有两个问题。第一个是关于香港市场的。我们看到自十月以来市场活跃度回升。那么，您能否分享更多关于我们在香港市场当前业务进展的情况？这对我们在香港市场的客户获取和交易量有什么影响？

And the second question is about the wealth management business. How is it going on? And can you share more data such as the AUM and the number of the wealth management clients? Thank you.

第二个问题是关于财富管理业务的。进展如何？您能否分享更多数据，例如管理资产规模和财富管理客户数量？谢谢。

John Zeng

[Foreign Language] [外语]

[Interpreted] We are quite satisfied with our ongoing development in Hong Kong. Since the end of September, we have seen a large improvement in market sentiment based on our operating data. Number one is, currently, we already met our annual guidance of 150,000 funded users, of which about 15%, over 20,000, came from Hong Kong. This is a significant increase compared to our first year in the Hong Kong market last year.

[解释] 我们对在香港的持续发展感到非常满意。自九月底以来，根据我们的运营数据，我们看到市场情绪有了很大改善。首先，目前我们已经达到了年度指导目标，即 15 万名资助用户，其中约 15%，超过 2 万名，来自香港。与去年我们在香港市场的第一年相比，这是一个显著的增长。

And also the quality of our Hong Kong customer is very high. The average client asset in Hong Kong has now surpassed Singapore, making it the highest among -- reaching among international markets where we entered. In the third quarter, the average net asset inflow for newly-acquired users in Hong Kong is about like US$20,000 and the total client asset in Hong Kong market increased by over 30% quarter-over-quarter. Thanks to the high average client asset and high velocity, the ARPU for retail users in Hong Kong was the highest across all regions in the third quarter, double that of the retail user in Singapore.

此外，我们香港客户的质量也很高。香港的平均客户资产现已超过新加坡，成为我们进入的国际市场中最高的。在第三季度，香港新获取用户的平均净资产流入约为 2 万美元，香港市场的客户总资产环比增长超过 30%。由于平均客户资产高且流动性强，香港零售用户的 ARPU 在第三季度是所有地区中最高的，是新加坡零售用户的两倍。

人均净资产太少，要成为客户的主账户还有很大的距离。

In October, we saw a significant increase in Hong Kong trading volume. The trading volume for October already exceeded the total trading volume of the third quarter. And also to enhance our trading capability in Hong Kong, we officially launched the Hong Kong stock option and short selling in the third quarter. Additionally, in November, we upgraded the Hong Kong stock option feature by offering weekly contracts in addition to monthly contracts. Thanks.

在十月份，我们看到香港交易量显著增加。十月份的交易量已经超过了第三季度的总交易量。为了增强我们在香港的交易能力，我们在第三季度正式推出了香港股票期权和卖空。此外，在十一月份，我们通过提供每周合约来升级香港股票期权功能，除了每月合约。谢谢。

Wu Tianhua 吴天华

[Foreign Language] [外语]

[Interpreted] Okay. So, regarding your second question about the wealth management, overall, we are quite satisfied with the growth pace of our wealth management business and the current diversity of our product offerings. We offer stable US products like Money Market Funds and US Treasury Bonds for investors who manage their idle cash, as well as fixed coupon notes, and services like the [EAM] (ph) platform and DPM discretionary accounts for the advanced users, institutions and family office, et cetera. In the future, we will continue to develop our wealth management business and enhance the synergy with our current brokerage business.

好的。关于您第二个关于财富管理的问题，总体而言，我们对财富管理业务的增长速度和当前产品种类的多样性感到非常满意。我们为管理闲置资金的投资者提供稳定的美国产品，如货币市场基金和美国国债，以及固定收益票据，并为高级用户、机构和家族办公室等提供[EAM]平台和 DPM 全权委托账户等服务。未来，我们将继续发展财富管理业务，并增强与现有经纪业务的协同效应。

If we look at numbers, in Q3, our wealth management AUM increased over 40% quarter-over-quarter and doubled year-over-year, exceeding US$1 billion. Among newly funded users in the Q3, around 30% of them started using our wealth management services. Additionally, in the Hong Kong market, the wealth management business saw even more significant growth with the number of clients increasing by nearly 50% quarter-over-quarter and AUM doubled quarter-over-quarter. Thank you.

如果我们看数字，在第三季度，我们的财富管理资产管理规模环比增长超过 40%，同比翻了一番，超过 10 亿美元。在第三季度的新资金用户中，约 30%开始使用我们的财富管理服务。此外，在香港市场，财富管理业务的增长更加显著，客户数量环比增长近 50%，资产管理规模环比翻了一番。谢谢。

Aaron Li

Operator, please move on to the next question.

操作员，请继续下一个问题。

Operator 操作员

Thank you. There are no further questions at this time. So, I'll hand the call back to Aaron for closing remarks.

谢谢。目前没有其他问题。所以，我将把电话交还给 Aaron 进行结束发言。

Aaron Li

Thanks, Mao. I'd 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 in today's 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. Bye-bye.

谢谢，毛。我想感谢大家今天参加我们的电话会议。我现在结束这次通话。代表 Tiger 的管理团队，我们非常感谢您今天的参与。如果您有任何进一步的问题，请联系我们的投资者关系团队。此次通话到此结束，非常感谢您的时间。再见。

Operator 操作员

This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.

今天的电话会议到此结束。感谢您的参与。您现在可以断开连接。发言者请稍候。

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