老虎證券 (TIGR) 2019 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited Second Quarter 2019 Earnings Conference Call. (Operator Instructions) I must advice you that this conference is being recorded today, Friday, August 23, 2019.

女士們，先生們，感謝您的支持，歡迎來到 UP Fintech Holding Limited 2019 年第二季度收益電話會議。（操作員說明）我必須告訴你，今天，即 2019 年 8 月 23 日，星期五，正在錄製這次會議。

I would now like to hand the conference over to your first speaker today, Mr. Clark S. Soucy. Thank you. Please go ahead.

我現在想把會議交給您今天的第一位發言人，Clark S. Soucy 先生。謝謝。請繼續。

Thank you, Grace. Hello, everyone, and thank you for joining us for the call today. UP Fintech Holding Limited's 2019 second quarter earnings release was distributed earlier today and is available on our IR website at ir.itiger.com as well as GlobeNewswire services.

謝謝你，格蕾絲。大家好，感謝您今天加入我們的電話會議。UP Fintech Holding Limited 的 2019 年第二季度收益發佈於今天早些時候發布，可在我們的 IR 網站 ir.itiger.com 以及 GlobeNewswire 服務上獲取。

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 U.S. Tiger Securities; and [Mr. Kenny Xiao], 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 follow their remarks.

今天來自 UP Fintech 的電話會議是董事長兼首席執行官吳天華先生；首席財務官 John Zeng 先生；美國老虎證券CEO黃磊先生；和[先生。Kenny Xiao]，我們的財務總監。吳先生將概述我們的業務運營並討論公司亮點。曾先生隨後將討論我們的財務業績。他們都將在他們發言後的問答環節中回答您的問題。

Now let me cover the safe harbor. Today's discussion will contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today and we do not take any obligation to update these statements, except as required under applicable law.

現在讓我介紹安全港。今天的討論將包含前瞻性陳述。這些前瞻性陳述涉及固有的風險和不確定性，可能導致實際結果與我們當前的預期存在重大差異。潛在風險和不確定性包括但不限於我們向美國證券交易委員會提交的公開文件中概述的風險和不確定性。我們在本次電話會議上所做的任何前瞻性陳述均基於截至今日的假設，除適用法律要求外，我們不承擔任何更新這些陳述的義務。

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 an English translation. Mr. Wu, please go ahead with your remarks.

我很高興現在介紹我們的董事長兼首席執行官吳先生。吳先生將用中文發表講話，隨後將進行英文翻譯。吳總，請繼續您的發言。

(foreign language)

（外語）

I will now translate for Mr. Wu.

我現在為吳先生翻譯。

[Interpreted] Hello, everyone, and thank you for joining our second quarter 2019 earnings conference call. I am delighted to report that in the second quarter, Tiger delivered solid revenue growth across business segments. Total revenues were nearly $13 million, an 88% increase on the same period last year and a 34% increase from last quarter. Our revenue sources became more diverse as we recognized approximately $3.5 million in net interest income, a large increase on the $1.5 million in the same period last year. Net interest income now accounts for nearly 30% of revenues as opposed to 22.6% during the same period last year.

[解讀]大家好，感謝您加入我們2019年第二季度財報電話會議。我很高興地報告，在第二季度，Tiger 在各個業務部門實現了穩健的收入增長。總收入接近 1300 萬美元，比去年同期增長 88%，比上一季度增長 34%。我們的收入來源變得更加多樣化，因為我們確認了大約 350 萬美元的淨利息收入，比去年同期的 150 萬美元大幅增加。淨利息收入現在佔收入的近 30%，而去年同期為 22.6%。

Our other revenues, which primarily comprised corporate services, such as ESOP and IPO distribution among others, grew twelvefold over the same period last year. I am proud to report that in the second quarter, Tiger participated in 5 U.S. IPOs, burnishing our reputation as the market's leading online broker for U.S. IPOs. Our ESOP business is also exhibiting strong growth. In just under a year, since product launch, we have signed close to 30 corporate customers.

我們的其他收入，主要包括企業服務，例如 ESOP 和 IPO 分配等，比去年同期增長了 12 倍。我很自豪地報告，在第二季度，Tiger 參與了 5 筆美國 IPO，鞏固了我們作為市場領先的美國 IPO 在線經紀商的聲譽。我們的 ESOP 業務也呈現強勁增長。在不到一年的時間裡，自產品推出以來，我們已經簽約了近 30 家企業客戶。

Now I would like to give you an overview of some of our key business metrics. Excluding share-based compensation, our non-GAAP net loss was approximately USD 800,000, a 76% improvement over the same period last year and a 61% improvement from last quarter. Customer account balances now total $3.6 billion, a 75% increase over the same period last year.

現在我想向您概述我們的一些關鍵業務指標。不包括基於股份的薪酬，我們的非美國通用會計準則淨虧損約為 800,000 美元，比去年同期改善 76%，比上一季度改善 61%。客戶賬戶餘額現在總計 36 億美元，比去年同期增長 75%。

Finally, at the end of the second quarter, we counted 580,000 customer accounts, an increase of 80% over the same period last year. Our vision is to use technology to give our investors seamless access to global markets. Thus, we continually invest in our research and development capabilities to enhance the customer experience as well as acquire new licenses to expand our global reach.

最後，在第二季度末，我們統計了580,000個客戶賬戶，比去年同期增長了80%。我們的願景是利用技術讓我們的投資者無縫進入全球市場。因此，我們不斷投資於我們的研發能力以提升客戶體驗，並獲得新的許可以擴大我們的全球影響力。

During the second quarter, we acquired Marsco, a U.S.A. broker dealer with a 30-year operating history that holds a self-clearing license. As we integrate Marsco into our company, we look forward to leveraging their strong knowledge of the brokerage industry and compliance protocols to improve our operations and proprietary technology. By leveraging Marsco's expertise in combination with Tiger's strong fintech capabilities, over the next 6 to 12 months, we will unveil new products for our customers and we'll use the self-clearing license to improve our profitability.

第二季度，我們收購了美國的 Marsco。具有30年經營歷史並持有自助清算牌照的經紀交易商。當我們將 Marsco 整合到我們公司時，我們期待利用他們對經紀行業和合規協議的豐富知識來改善我們的運營和專有技術。通過利用 Marsco 的專業知識和 Tiger 強大的金融科技能力，在未來 6 到 12 個月內，我們將為我們的客戶推出新產品，我們將使用自我清算許可證來提高我們的盈利能力。

Another notable development is that our U.S.A. subsidiary also acquired membership of the National Futures Association, giving it the capability to provide futures trading services to U.S.A. customers. In Asia, our Singapore subsidiary obtained a Capital Markets Services license, which will allow us to provide brokerage services to Singapore nationals in the coming months. We look forward to using these new licenses to further diversify our global customer base.

另一個值得注意的發展是我們的美國。子公司還獲得了美國國家期貨協會的會員資格，使其具備了向美國提供期貨交易服務的能力。顧客。在亞洲，我們的新加坡子公司獲得了資本市場服務牌照，這將使我們能夠在未來幾個月內為新加坡國民提供經紀服務。我們期待使用這些新許可證進一步豐富我們的全球客戶群。

Finally, I would like to speak to the technological prowess that is at the core of our business and which we keep investing heavily in. Recently, we allowed our customers to start streaming U.S.A. Level II real-time market data, giving them the ability to examine the depth of book for the equities they trade. On the product side, besides from updating our APP at 2-week intervals, we also upgraded our Tiger community interface with new educational resources to increase our customers' understanding of investing in global markets. These efforts are already showing promising results with the customers trading a greater percentage of U.S. equities that are not Chinese ADRs. Of the 25 most traded U.S.A. listed equities on our platform, only 28% were Chinese ADRs by value, representing a notable decrease from 36% during the same quarter last year. We will continue to allocate resources to investor education to assist our users to diversify their assets globally.

最後，我想談談作為我們業務核心的技術實力，我們一直在大力投資。最近，我們允許我們的客戶開始流式傳輸美國。二級實時市場數據，使他們能夠檢查所交易股票的賬面深度。在產品方面，除了每兩週更新一次我們的APP，我們還升級了Tiger社區界面，加入了新的教育資源，以增加客戶對全球市場投資的理解。這些努力已經顯示出可喜的成果，客戶交易的非中國 ADR 的美國股票比例更高。在 25 個交易量最大的美國在我們平台上的上市股票中，按價值計算，只有 28% 是中國 ADR，與去年同期的 36% 相比顯著下降。我們將繼續為投資者教育分配資源，以幫助我們的用戶在全球範圍內實現資產多元化。

I will now hand the call over to our CFO, Mr. John Zeng, to go over the details of our financial results. Thank you.

我現在將電話轉交給我們的首席財務官 John Zeng 先生，讓他詳細了解我們的財務業績。謝謝。

Thanks, Tianhua and Clark. Hello, everyone. Let me go over Tiger's second quarter financial performance. All dollar amounts are in USD. So on the revenue side, very encouraging growth across business segment this quarter. Total revenues were $12.9 million, an 88% growth year-over-year and 34% growth quarter-over-quarter.

謝謝，天華和克拉克。大家好。讓我回顧一下 Tiger 第二季度的財務表現。所有美元金額均以美元為單位。因此，在收入方面，本季度整個業務部門的增長非常令人鼓舞。總收入為 1290 萬美元，同比增長 88%，環比增長 34%。

Gross commissions were $6.8 million, an increase of 31% from same period last year, helped by 14% increase in trading volume and the increase in blended commission rates. Combining financing service fee and interest income, total interest was $4.5 million, an increase of 190%, 1-9-0, from the same period last year due to higher margin trading and securities lending activities.

佣金總額為 680 萬美元，比去年同期增長 31%，這得益於交易量增長 14% 和混合佣金率的提高。加上融資服務費和利息收入，總利息為 450 萬美元，比去年同期增長 190%，增長 1-9-0，原因是保證金交易和證券借貸活動增加。

Other revenue, which comprise our 2B business such as IPO distribution and the ESOP, increased twelvefold to $1.6 million year-over-year, solidifying Tiger's leading position in U.S. IPO distribution and ESOP management for corporate issuers. Helped by all segment growth, our revenue stream is getting more diverse. For this quarter, commission net interest and the 2B revenue, each accounted for 57%, 29% and 14% of our net revenue, while display was 75%, 23% and 2% in the same quarter last year. With our expansion in more geographical locations and the self-clearing capability up and running in next 6 to 12 months, we expect our revenue to be more diversified going forward.

其他收入，包括我們的 2B 業務，如 IPO 發行和 ESOP，同比增長 12 倍，達到 160 萬美元，鞏固了 Tiger 在美國 IPO 發行和企業發行人 ESOP 管理方面的領先地位。在所有細分市場增長的幫助下，我們的收入來源變得更加多樣化。本季度，佣金淨利息和 2B 收入分別占我們淨收入的 57%、29% 和 14%，而去年同期顯示分別為 75%、23% 和 2%。隨著我們在更多地理位置的擴張以及未來 6 至 12 個月內的自我清算能力的啟動和運行，我們預計未來我們的收入將更加多元化。

So now on the cost side. Employee compensation remains our biggest expense. This quarter, our salary expense was $8.1 million, a 79% decrease from same quarter last year. The decrease was due to onetime share-based expense of $32 million recorded in the last year. Excluding share-based compensation, our salary expense increased by 37%, while our headcount increased 51% from 344 to 520 during the same period. Headcount increase also resulted a 21% increase of occupancy expense this quarter to USD 800,000.

所以現在在成本方面。員工薪酬仍然是我們最大的支出。本季度，我們的工資支出為 810 萬美元，比去年同期下降 79%。減少是由於去年記錄的 3200 萬美元的一次性基於股份的費用。不包括基於股份的薪酬，我們的工資支出增加了 37%，而同期我們的員工人數增加了 51%，從 344 人增加到 520 人。員工人數的增加還導致本季度的入住費用增加 21%，達到 800,000 美元。

Execution and clearing expense increased 16x this quarter, interest expense increased from 0 to $1 million, both increases are due to a more consolidated account customer this quarter.

本季度執行和清算費用增加了 16 倍，利息費用從 0 增加到 100 萬美元，這兩項增長均歸因於本季度更多的綜合賬戶客戶。

Communication expense was $1.7 million, increased by 96% from second quarter last year, as we are offering more data services such as U.S. Level II to our users.

通信費用為 170 萬美元，比去年第二季度增長 96%，因為我們正在向用戶提供更多數據服務，例如美國二級數據服務。

Marketing expense was $2 million, a 20% decrease from last year, since we have been optimizing our marketing spending to focus on vendors and then we can yield better ROI.

營銷費用為 200 萬美元，比去年減少 20%，因為我們一直在優化營銷支出以專注於供應商，然後我們可以獲得更好的投資回報率。

SG&A increased 9% to $1.9 million due to increase in headcount and the professional service fee.

由於員工人數和專業服務費的增加，SG&A 增加了 9% 至 190 萬美元。

To summarize, comparing with same quarter last year, total costs, excluding share-based compensation, increased by 25%, while top line grew 88% during the same period, which translates to a strong improvement in our bottom line. On GAAP basis, net loss attributable to the company was $1.9 million, a 95% improvement from last year. On a non-GAAP basis, net loss attributable to the company was USD 800,000, a 75% improvement from last year.

總而言之，與去年同期相比，總成本（不包括基於股份的薪酬）增長了 25%，而同期收入增長了 88%，這意味著我們的利潤有了很大改善。根據 GAAP，歸屬於公司的淨虧損為 190 萬美元，比去年減少 95%。按非美國通用會計準則計算，歸屬於公司的淨虧損為 800,000 美元，較去年減少 75%。

Overall, we are making good progress to improve earning quality in addition to drive user growth. Our revenue streams are more balanced and it is less dependent on commission versus last year. We may incur more headcount, R&D and marketing expense in the next few quarters when expanding offshore, but we feel very confident about our business outlook with the strategies we are executing.

總體而言，除了推動用戶增長外，我們在提高盈利質量方面也取得了良好進展。與去年相比，我們的收入來源更加平衡，對佣金的依賴程度更低。在未來幾個季度，我們可能會在海外擴張時招致更多的員工、研發和營銷費用，但我們對我們正在執行的戰略的業務前景充滿信心。

So now we have concluded our remarks and is open for Q&A.

所以現在我們已經結束了我們的發言並開始接受問答。

(Operator Instructions) The first question is coming from the line of Judy Zhang from Citibank.

（操作員說明）第一個問題來自花旗銀行的Judy Zhang。

This is Judy from Citi. I have 2 questions. The first question is, we have seen a very strong quarter for the margin financing revenue in the second quarter. Can the management share with us what's the total margin financing balance in the second quarter and how the interest rates trended over the past quarter? And the second question is on the commissions. We see the trading volume has dropped further in the second quarter. Can you give us a breakdown by country and by type of securities? And also, what is the driver for the weakness in this quarter?

這是花旗銀行的朱迪。我有兩個問題。第一個問題是，我們看到第二季度的保證金融資收入非常強勁。管理層能否與我們分享第二季度的保證金融資餘額總額以及上一季度的利率趨勢如何？第二個問題是關於佣金的。我們看到第二季度的交易量進一步下降。你能給我們按國家和證券類型分類嗎？此外，本季度疲軟的驅動因素是什麼？

Hey, Judy. So let me answer your first question. Sorry, your line was a little bit fuzzy, so I didn't hear your second question clearly. Can you repeat your second question?

嘿，朱蒂。所以讓我回答你的第一個問題。抱歉，你的台詞有點模糊，所以我沒聽清楚你的第二個問題。你能重複你的第二個問題嗎？

Yes. The trading volume has dropped a lot in second quarter. Can you give us a breakdown for the trading volume by country and by type of securities? And also, can you share with us what is driving the weakness in the second quarter?

是的。第二季度交易量下降了很多。您能否按國家和證券類型向我們提供交易量明細？另外，您能否與我們分享是什麼導致了第二季度的疲軟？

Okay. So let me answer your first question regarding margin balance. So as you know, so the margin balance, we have -- so 2 type of accounts: one is like fully disclosed account, which the balance is not on our book; second, I'll give you the number of the balance of the margins on our book, is about like USD 40 million. Okay, that's the balance on our book. So overall, we have more -- we can drive more interest out of our own margin balance, and we expect the margin balance will keep growing as we have more consolidated account, new customers coming forward. So the net interest margin, let me just give you a rough estimate, I will say for consolidated accounts, it's about like 2% to 4%. It depends on the user type. And for the FD accounts, the net margin was much lower, I will say, it's about like 50 bps on an aggregate basis. So that's on the margin balance.

好的。那麼讓我回答你關於保證金餘額的第一個問題。如您所知，我們有保證金餘額——所以有兩種類型的賬戶：一種是完全披露的賬戶，餘額不在我們的賬簿上；其次，我會告訴你我們賬面上的利潤餘額，大約是 4000 萬美元。好的，這是我們賬簿上的餘額。所以總的來說，我們有更多 - 我們可以從我們自己的保證金餘額中獲得更多利息，並且我們預計隨著我們擁有更多合併賬戶，新客戶湧入，保證金餘額將繼續增長。所以淨息差，讓我給你一個粗略的估計，我會說對於合併賬戶，大約是 2% 到 4%。這取決於用戶類型。對於 FD 賬戶，淨利潤要低得多，我會說，總計大約 50 個基點。這就是保證金餘額。

For the trading volume. So second quarter was down about like, I would say, 13% from the first quarter. The reason is the market volatility actually came down in the second quarter. So the total U.S. equity trading volume, if you look at the CBOE data, it's actually down from the first quarter. So our company experienced the similar trends in terms of client trading activities. But still, we are able to optimize our operation to drive like higher commission, blended commission rates because last year, we had to sign promotion programs which expires, so our blended commission rates raised up -- came up higher versus the first quarter. That's the one of the reason behind the increase in gross commission.

對於交易量。所以第二季度比第一季度下降了大約 13%。原因是市場波動實際上在第二季度有所下降。因此，如果你看一下 CBOE 的數據，美國股票的總交易量實際上比第一季度有所下降。因此，我們公司在客戶交易活動方面經歷了類似的趨勢。但是，我們仍然能夠優化我們的運營以推動更高的佣金、混合佣金率，因為去年我們不得不簽署到期的促銷計劃，所以我們的混合佣金率提高了——比第一季度更高。這是總佣金增加的原因之一。

Okay. And how about the second question?

好的。那麼第二個問題呢？

Sorry. Judy, what's your second question?

對不起。朱迪，你的第二個問題是什麼？

The breakdown of the trading volume by country and by different type of securities in second quarter? And what is driving the weakness in the trading volume in the second quarter?

第二季度按國家和不同類型證券劃分的交易量明細？二季度成交量疲軟的原因是什麼？

You mean the driving weakness of the trading volume in the second quarter?

你是說二季度成交量的拉動疲軟？

Yes. Yes.

是的。是的。

Yes. So like I just mentioned, the -- overall, the market volatility, if you look at the VIX volatility, actually came down in April and June. It came back a little bit in May. But overall, the market activities at least on our platform are still down a little bit. That's why the trading volume came down. If you look at the breakdown of the countries, so U.S. equity still accounts for like the most of our trading volume in terms of equities. And also, U.S. product, our USD product, I would say, accounts for over 70% to 80% of our trading volume. I don't have the exact breakdown by country, but I can just give you the breakdown by currency. So USD product had the most, then followed by Hong Kong HKD product as the second, accounts for like slightly above like 15%.

是的。所以就像我剛才提到的，總體而言，市場波動，如果你看一下 VIX 波動，實際上在 4 月和 6 月有所下降。它在五月回來了一點。但是總體來說，至少我們平台上的市場活躍度還是有一點下降的。這就是交易量下降的原因。如果您查看國家/地區的細分，那麼就股票而言，美國股票仍然占我們交易量的大部分。而且，美國產品，我們的美元產品，我想說，占我們交易量的 70% 到 80% 以上。我沒有按國家/地區分類的確切細目，但我可以按貨幣向您提供細目分類。所以美元產品最多，其次是香港港幣產品，佔比略高於15%。

15% for the Hong Kong dollar-denominated products, right?

15%為港幣計價產品，對嗎？

Yes. Something like this, above 15%.

是的。像這樣，超過 15%。

Okay. And also, how about the breakdown by different type of securities like futures, equities, et cetera?

好的。此外，不同類型證券（如期貨、股票等）的細分情況如何？

Let me take a look. So for the futures, I would say equities accounts for about like 40% to 45% of our total trading volume. The futures is about the same, like 40% to 45% of our trading volume for this quarter.

讓我看一看。所以對於期貨，我想說股票約占我們總交易量的 40% 到 45%。期貨大致相同，占我們本季度交易量的 40% 到 45%。

Next question comes from the line of Lesley Liu from HSBC.

下一個問題來自匯豐銀行的Lesley Liu。

This is Liu from HSBC. And I basically have 3 questions. First one is the trend of our commission in revenue and the trend of trading volume because the trading volume is going down but the commission is going up. Is the difference because of some IPO commission?

我是匯豐銀行的劉。我基本上有 3 個問題。第一個是我們的佣金收入趨勢和交易量趨勢，因為交易量在下降，但佣金在上升。差異是因為一些 IPO 佣金嗎？

And the second question is also about the financing business because we see a significant growth in the interest income in the second quarter. Going forward, that means we are going to have more financing business or more interest income on our balance sheets instead of off the balance sheet. So what is the potential funding source if we're going to continue to grow this business?

第二個問題也是關於融資業務，因為我們看到第二季度的利息收入有顯著增長。展望未來，這意味著我們將在資產負債表上而不是在資產負債表外擁有更多的融資業務或更多的利息收入。那麼，如果我們要繼續發展這項業務，潛在的資金來源是什麼？

And third question is about other revenue because as our CEO just mentioned that the other revenue is basically from IPO subscription fee. So how are we going to compete with other investment banks in terms of the IPO subscription business? And is our strategy like role-pricing strategy for this business? And how important is our 2B business compared with our 2C business?

第三個問題是關於其他收入，因為正如我們的首席執行官剛才提到的那樣，其他收入基本上來自 IPO 認購費。那麼我們在新股認購業務方面如何與其他投行競爭呢？我們的策略是否類似於此業務的角色定價策略？與我們的2C業務相比，我們的2B業務有多重要？

Sure. Giving thanks for the questions. So let me answer your first 2 questions. Then I will let Tianhua to answer your third question in Chinese and I will do a quick translation. So for your first question regarding the volume and commission, so it is similar to the question Judy asked a little bit earlier. So trading volume actually slowed down a little bit because the market activity slows down. So the activities also slowed down a little bit on our platform. In terms of the increasing trading -- the commission rates, first of all, we had some discount program over last year and it was expired. And also, like for this quarter, we saw a little bit higher margin product trading, which is more like cash equities versus last quarter. So that's why the blended commission increased compared to the last quarter. So that's to your first question.

當然。感謝您的提問。所以讓我回答你的前兩個問題。那我讓天華用中文回答你的第三個問題，我會做一個快速的翻譯。因此，對於您關於交易量和佣金的第一個問題，它與 Judy 之前提出的問題類似。所以交易量實際上有所放緩，因為市場活動放緩。所以我們平台上的活動也慢了一點。就增加的交易而言——佣金率，首先，我們在去年有一些折扣計劃，但它已經過期了。而且，與本季度一樣，我們看到利潤率略高的產品交易，與上一季度相比更像是現金股票。這就是混合佣金與上一季度相比有所增加的原因。這就是你的第一個問題。

The second question is on the financing business and what's the future driver for the financing business. I think for this business, we have a huge potential because as I said earlier, like so far, the margin balance on our own book is still relatively low. A lot of margin balance is holding at our clearing partners. But going forward, once our consolidated account keeps growing, we will have more margin balances on our book and then we can churn out more revenue from those margin balance.

第二個問題是關於融資業務以及融資業務未來的驅動力是什麼。我認為對於這項業務，我們有巨大的潛力，因為正如我之前所說，到目前為止，我們自己賬面上的保證金餘額仍然相對較低。我們的清算合作夥伴持有大量保證金餘額。但展望未來，一旦我們的合併賬戶持續增長，我們的賬面上將有更多的保證金餘額，然後我們可以從這些保證金餘額中獲得更多收入。

I will let Tianhua answer your third question regarding our 2B business and how we compete with other investment bank and what's the strategy to we playing in the 2B business.

我讓天華回答你的第三個問題，關於我們的2B業務，我們如何與其他投行競爭，我們在2B業務中的策略是什麼。

(foreign language)

（外語）

Okay. Let me just do a quick translation, the third question.

好的。第三個問題，我簡單翻譯一下。

[Interpreted] So in terms of other revenues, the reason we participated in those IPO distribution is, first of all, our users on our platform, they do have the interest to participate in the U.S. IPOs because typically, U.S. IPO don't open to those smaller investors, but because of Tiger, those smaller investors or small institutions are being able to participate in those U.S. IPOs to enjoy the benefits of the U.S. capital market. So how I view this 2B business? It's a very important segment of our future growth because with the corporate issuers, we can provide them with very solid demands and also, we can provide them with IR and the PR services, and we also have a very active online community to share their equity or exciting growth stories. So those are the differentiation we can offer from the traditional investment banks because the traditional investment banks, they don't really -- that involved like us to be able to offer different value-added services.

[解讀]所以就其他收入而言，我們參與這些 IPO 分配的原因首先是我們平台上的用戶，他們確實有興趣參與美國 IPO，因為通常美國 IPO 不開放對於那些較小的投資者，但是因為老虎，那些較小的投資者或小型機構能夠參與那些美國的首次公開募股，以享受美國資本市場的好處。那麼我如何看待這個2B業務呢？這是我們未來增長的一個非常重要的部分，因為與公司發行人，我們可以為他們提供非常堅實的需求，我們可以為他們提供 IR 和 PR 服務，我們也有一個非常活躍的在線社區來分享他們的股權或激動人心的成長故事。因此，這些是我們可以提供的與傳統投資銀行不同的地方，因為傳統投資銀行實際上並沒有像我們這樣能夠提供不同的增值服務。

In terms of ESOP, the traditional ESOP offered by some, I would say, last-generation companies, those ESOP providers are, first of all, relatively more expensive and their softwares are not that easy to use. So we see this is good opportunities for us to tap into, and we combine ESOP and the IPO services together to offer as a complete package to the corporate issuers, that's why you can see Tiger has been growing really fast in these segments.

就ESOP而言，一些傳統的ESOP，我想說，上一代公司，那些ESOP提供者，首先，相對昂貴，他們的軟件也不是那麼好用。所以我們看到這是我們可以利用的好機會，我們將 ESOP 和 IPO 服務結合在一起，作為一個完整的包提供給企業發行人，這就是為什麼你可以看到 Tiger 在這些領域發展得非常快。

(Operator Instructions) Next, we have the follow-up questions from the line of Judy Zhang from Citibank.

（操作員說明）接下來，我們有來自花旗銀行的Judy Zhang的後續問題。

I have another 2 questions. The first question is on your overseas expansion. Is there any meaningful contribution from the non-China-based clients in the total new clients in this quarter? And if so, what is the contribution? And my second question is, can management share with us any update on the progress of your licensing application in Hong Kong?

我還有另外兩個問題。第一個問題是關於您的海外擴張。在本季度的新增客戶總數中，非中國客戶是否有任何有意義的貢獻？如果有，貢獻是什麼？我的第二個問題是，管理層能否與我們分享你們在香港申請牌照的最新進展？

Hi, Judy. So first of all, on how many clients are our overseas clients. So, so far, given our overseas expansion just started, we just got all the license in place. So, so far, for this quarter, we don't see -- I would say, majority of our clients are still the PRC clients. But for the next 2 or 3 quarters, we would like to see more international clients to be able to use our platform. And for the Hong Kong license, we are in preparation to apply for Hong Kong license.

嗨，朱迪。所以首先，有多少客戶是我們的海外客戶。所以，到目前為止，鑑於我們的海外擴張才剛剛開始，我們剛剛獲得了所有許可證。所以，到目前為止，對於本季度，我們沒有看到 - 我會說，我們的大多數客戶仍然是中國客戶。但在接下來的 2 或 3 個季度，我們希望看到更多的國際客戶能夠使用我們的平台。而對於香港牌照，我們正在準備申請香港牌照。

(Operator Instructions) Ladies and gentlemen, this is the end of the question-and-answer session. I would -- we would now conclude today's conference call. Thank you for participating. You may now disconnect.

（操作員說明）女士們先生們，問答環節到此結束。我會——我們現在結束今天的電話會議。感謝您的參與。您現在可以斷開連接。

Thank you.

謝謝。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]