老虎證券 (TIGR) 2019 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited Fourth Quarter 2019 Earnings Conference Call. (Operator Instructions) I must advise you that this conference is being recorded today, Wednesday, 25th, 2020. I would now like to hand the conference over to your first speaker today, Mr. Clark Soucy. Thank you. Please go ahead.

女士們、先生們，感謝大家的支持，歡迎參加UP Fintech Holding Limited 2019年第四季業績電話會議。（操作員指示）我必須通知您，本次會議將於今天（2020 年 25 日星期三）錄製。現在我想將會議交給今天的第一位發言者克拉克·蘇西先生。謝謝。請繼續。

Thank you, Rachel. Hello, everyone, and thank you for joining us for the call today. UP Fintech Holding Limited's fourth quarter 2019 earnings release was distributed earlier today and is available on our IR website at ir.itiger.com as well as GlobeNewswire services. 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. Cyber Securities; and Mr. Kenny Zhao, our Financial Controller.

謝謝你，雷切爾。大家好，感謝您今天加入我們的電話會議。UP Fintech Holding Limited 的 2019 年第四季收益報告於今天稍早發布，可在我們的投資者關係網站 ir.itiger.com 以及 GlobeNewswire 服務上取得。今天參加 UP Fintech 電話會議的有：董事長兼執行長吳天華先生；曾約翰先生，財務長；黃雷先生，美國賽博證券執行長；以及我們的財務總監 Kenny Zhu 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.

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表現。他們將在發言後的問答環節回答您的問題。

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, but we do not take any obligation to update these statements, except as required under applicable law.

現在讓我來報道安全港。今天的討論將包含前瞻性陳述。這些前瞻性陳述涉及固有風險和不確定性，可能導致實際結果與我們目前的預期有重大差異。潛在風險和不確定性包括但不限於我們向 SEC 公開提交的文件中概述的風險和不確定性。我們在本次電話會議中所做的任何前瞻性陳述均基於截至目前的假設，但我們不承擔任何更新這些陳述的義務，除非適用法律要求。

It is now my pleasure to 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.

現在我很高興向大家介紹我們的董事長兼執行長吳先生。吳先生將以中文致辭，隨後將有英文翻譯。請吳先生發言。

(foreign language)

（外語）

[Interpreted] Good evening, everyone, and thank you very much for attending the Tiger Brokers 2019 Fourth Quarter and Full Year Earnings Conference Call. Before I elaborate on our business results, I would like to make a brief comment on the virus pandemic. Since we operate an online platform, there has not been a substantial impact on our business. However, the health and safety of our employees is paramount, and our firm has taken extra precautions. At our global offices, employees are working in shifts or from home.

【解讀】大家晚上好，非常感謝大家參加老虎證券2019年第四季及全年業績電話會議。在詳細闡述我們的業務成果之前，我想對病毒大流行做一個簡短的評論。由於我們經營的是線上平台，因此我們的業務並未受到重大影響。然而，我們員工的健康和安全至關重要，我們公司採取了額外的預防措施。在我們的全球辦事處，員工輪班或在家工作。

I will now continue with my prepared remarks. In the fourth quarter, Tiger delivered impressive financial results. Total revenue was $20 million, a new all-time high and nearly 110% increase over the same period last year. In the fourth quarter of 2019, we achieved the fastest year-over-year revenue growth of any quarter last year. In addition, I would like to highlight that we continue to optimize our revenue mix. Interest related income, which is interest income plus financing service fees exceeded commission income and accounted for 38% of total revenue. 2B revenue which includes our corporate services like IPO distribution and ESOP administration services increased to 26% of total revenue. This is compared to 2018 when 74% of our income was derived from commissions. In the fourth quarter, we recorded our first ever non-GAAP operating income of USD 0.3 million. A significant improvement from a non-GAAP operating loss of USD 2.8 million in the same period of 2018 and a $1.3 million loss in the third quarter of 2019, demonstrating the improvement in Tiger's operating efficiency and earnings quality.

現在我將繼續我準備好的發言。第四季度，老虎集團取得了令人矚目的財務表現。總營收為2,000萬美元，創歷史新高，較去年同期成長近110%。2019年第四季度，我們實現了去年任何季度最快的年收入成長。此外，我想強調的是，我們將繼續優化我們的收入組合。利息相關收入，即利息收入加上融資服務費超過佣金收入，佔總收入的38%。2B 收入（包括 IPO 分銷和 ESOP 管理服務等企業服務）增加至總收入的 26%。相較之下，2018 年我們 74% 的收入來自佣金。第四季度，我們首次實現非 GAAP 營業收入 30 萬美元。較2018年同期280萬美元的非GAAP營運虧損和2019年第三季130萬美元的虧損有了顯著改善，體現了Tiger營運效率和獲利品質的改善。

(foreign language)

（外語）

[Interpreted] We are also pleased to report that our innovative platform and differentiated services continue to drive ever more investors to choose Tiger to manage their assets. In the fourth quarter, we added approximately 11,300 new accounts with deposits, an increase of 86% from the same quarter in 2018. In addition, total client assets increased to $5.1 billion, a nearly 114% increase from the same period in 2018 and an increase of $1.3 billion in the third quarter of 2019.

[解讀]我們也很高興地報告，我們的創新平台和差異化服務繼續推動越來越多的投資者選擇老虎來管理他們的資產。第四季度，我們新增約 11,300 個存款帳戶，較 2018 年同季成長 86%。此外，客戶總資產增加至51億美元，較2018年同期成長近114%，2019年第三季增加13億美元。

(foreign language)

（外語）

[Interpreted] In aggregate, our 2019 financial results evidenced a solid improvement over 2018. Total revenues in 2019 were $58.7 million, a 75% increase over 2018. We also achieved consecutive non-GAAP profit for the third and fourth quarter of 2019.

【解讀】整體而言，我們2019年的財務表現比2018年有了顯著改善。2019 年總營收為 5,870 萬美元，比 2018 年成長 75%。我們也連續實現了 2019 年第三季和第四季的非 GAAP 利潤。

(foreign language)

（外語）

[Interpreted] 2019, was a monumental year in the history of our company. In March, we successfully listed on the NASDAQ and embarked on a new journey in our company's history. 2019 was full of challenges but we remain focused and continue to emphasize transparency and made positive progress on our business. I would now like to highlight 4 key components of our corporate strategy that we successfully implemented over the last year.

【解讀】2019年，是我們公司歷史上具有里程碑意義的一年。3月，我們在納斯達克成功上市，開啟了公司歷史的新旅程。2019 年充滿挑戰，但我們仍然專注並繼續強調透明度，並在業務上取得了積極進展。現在我想重點介紹我們去年成功實施的企業策略的 4 個關鍵組成部分。

(foreign language)

（外語）

[Interpreted] First and foremost, we are following our strategy of shifting from relying on clearing counterparties to developing our self-clearing capabilities. Self clearance will not only reduce our expenses and drive increased interest income, it will also limit the impact to revenue from commission volatility. This was our reason for acquiring Marsco in July. System integration is on track. We expect to gradually self clear U.S. cash equities toward the end of the second quarter of 2020.

【解讀】首先，我們正在遵循從依賴清算對手轉向發展自我清算能力的策略。自助清算不僅會減少我們的開支並增加利息收入，還會限制佣金波動對收入的影響。這就是我們在 7 月收購 Marsco 的原因。系統整合已步入正軌。我們預計到 2020 年第二季末將逐步自行清算美國現金股票。

(foreign language)

（外語）

[Interpreted] Second, our strategy to increase our international reach progressed nicely in 2019. Besides our New Zealand office, we now have a presence in the United States and Singapore. We are confident that our international expansion will increase our customer base and give us access to more business development opportunities.

【解讀】二是2019年我們國際化策略進展順利。除了紐西蘭辦事處外，我們現在還在美國和新加坡設有辦事處。我們相信，我們的國際擴張將增加我們的客戶群，並使我們獲得更多的業務發展機會。

(foreign language)

（外語）

[Interpreted] Third, our ESOP business and IPO underwriting delivered strong growth in 2019. In 2019, we participated in 18 U.S. IPOs, in 12 of which we served as underwriter. We were the #1 IPO underwriter in terms of deal number for Chinese issuers in 2019 by a wide margin and the scale of our IPO business greatly exceeded that of any other Chinese broker. Besides the contribution to our revenues, we view development of our investment banking services as beneficial to our reputation and accretive to user stickiness. Our ESOP business also grew rapidly in 2019. We developed a large client base in just 1 years' time, and it started to yield results. I am pleased to report that in the fourth quarter, over 20% of newly funded accounts came from our ESOP customers.

【解讀】三是2019年我們的ESOP業務和IPO承銷業務實現強勁成長。2019年，我們參與了18宗美國IPO，其中12宗由我們擔任承銷商。就 2019 年中國發行人的 IPO 交易數量而言，我們遙遙領先，我們的 IPO 業務規模遠遠超過任何其他中國券商。除了對我們收入的貢獻之外，我們認為投資銀行服務的發展也有利於我們的聲譽並增加用戶黏性。2019年我們的ESOP業務也快速成長。我們在短短一年的時間裡就建立了龐大的客戶群，並開始產生成果。我很高興地報告，第四季度超過 20% 的新資金帳戶來自我們的 ESOP 客戶。

(foreign language)

（外語）

[Interpreted] In addition, we are investing in our asset management business. Tiger's actively managed cash plus product, has delivered good investment returns for our users since launch. We also recently launched our Fund Mall, where users may choose from over 30 investment funds. We view brokerage and asset management as complementary as our growing range of services increases user stickiness. Over the long term, this strategy will comprehensively develop commission, interest income and asset management fees, diversifying our revenue and increasing customer lifetime value.

【解讀】此外，我們正在投資資產管理業務。老虎積極管理的現金+產品自推出以來為我們的用戶帶來了良好的投資回報。我們最近也推出了基金商城，用戶可以從 30 多個投資基金中進行選擇。我們認為經紀和資產管理是互補的，因為我們不斷擴大的服務範圍增加了用戶黏性。長遠來看，這項策略將全面拓展佣金、利息收入和資產管理費，實現收入多元化，並提高客戶終身價值。

(foreign language)

（外語）

[Interpreted] Finally, after discussion and agreement by the Board of Directors, we have decided to implement a share buyback program. Over the next 12 months, we will allocate a maximum of USD 20 million to ADS buybacks. In conclusion, we look forward to continuing to implement before aforementioned points of our corporate strategy and growing our business.

【解讀】最後，經董事會討論同意，決定實施股票回購方案。在接下來的 12 個月內，我們將分配最多 2,000 萬美元用於 ADS 回購。總之，我們期待繼續實施我們企業策略的上述要點並發展我們的業務。

(foreign language)

（外語）

[Interpreted] I would now like to invite our CFO, John Zeng, to discuss our key financial results.

[解讀]我現在想邀請我們的財務長John Zeng來討論我們的主要財務表現。

Hello, everyone. Overall, very strong fourth quarter for Tiger. Total revenue was USD 20 million, grew more than 100% year-over-year and 30% quarter-over-quarter.

大家好。總體而言，老虎隊的第四季非常強勁。總收入為 2,000 萬美元，較去年同期成長超過 100%，較上季成長超過 30%。

Commission income was $7.3 million, increased 4% from last year and 17% from the previous quarter. Cash equity blended commission was 8 bps this quarter versus 5 bps the same quarter last year.

佣金收入為 730 萬美元，比去年增長 4%，比上一季增長 17%。本季現金股權混合佣金為 8 個基點，去年同期為 5 個基點。

Financing service fee increased 18% year-over-year to $2 million this quarter. Interest income grew more than 100x year-over-year to $5.5 million as we have more consolidated account customers versus last year. The growth for financing service fees and interest income also both benefited from increased margin and securities lending activity this quarter.

本季融資服務費年增 18% 至 200 萬美元。由於與去年相比，我們擁有更多的綜合帳戶客戶，利息收入年增超過 100 倍，達到 550 萬美元。融資服務費和利息收入的成長也受惠於本季保證金和融券活動的增加。

Other revenue primarily consists revenue from corporate services such as IPO underwriting, grew close to 700% year-over-year to $5.1 million. We were very active on IPO underwriting last year. In terms of deal counts, far exceeded any of our competitors, it's also an effective customer acquisition to develop the retail and the institutional business.

其他收入主要包括 IPO 承銷等企業服務收入，年增近 700%，達到 510 萬美元。去年我們在IPO承銷方面非常活躍。就交易數量而言，遠遠超過我們的任何競爭對手，這也是發展零售和機構業務的有效客戶獲取方式。

Comparing revenue composition with fourth quarter last year, we are happy to see revenue mix is getting more healthy. Interest related income this quarter accounted for 38% of total revenue. Corporate services accounted for 26%. While in the fourth quarter last year, commission accounted for 74% of the total revenue.

與去年第四季的收入組成相比，我們很高興看到收入結構變得更加健康。本季利息相關收入佔總收入的38%。企業服務佔26%。而去年第四季度，佣金佔總收入的74%。

Interest expense grew to $1.5 million this quarter due to more consolidated account customers. After interest expense, net revenue was $18.5 million, a 94% increase from same quarter last year.

由於合併帳戶客戶數量增加，本季利息支出成長至 150 萬美元。扣除利息支出後，淨收入為 1,850 萬美元，比去年同期成長 94%。

Now switching to expenses.

現在轉向支出。

Clearing expense increased from $0.1 million in the fourth quarter last year to $0.9 million this quarter, in line with our growth of consolidated accounts. Salary expense increased 61% to $10.6 million, primarily due to a 49% headcount increase year-over-year. In 2020, we will keep adding key positions, but our headcount growth rate will moderate.

清算費用從去年第四季的 10 萬美元增加到本季的 90 萬美元，與我們合併帳戶的成長一致。薪資支出增加 61% 至 1,060 萬美元，主要是因為員工人數較去年同期增加 49%。2020年，我們將繼續增加關鍵職位，但員工數量成長將放緩。

Occupancy expense increased 72% to $1.1 million as we opened offices in new New York and Singapore. Communication and market data expense also grew [104%] (corrected by company after the call) year-over-year to 1.9 million as more users are using our services.

隨著我們在新紐約和新加坡開設辦事處，佔用費用增加了 72%，達到 110 萬美元。隨著越來越多的用戶使用我們的服務，通訊和市場數據費用也同比增長 [104%]（由公司在電話會議後修正），達到 190 萬。

Marketing expense decreased 25% year-over-year to $1.7 million this quarter as we optimized our marketing strategies which related to higher efficiency. General and administrative expense increased 14% to $2.8 million, primarily due to business expansion and professional services. Total expense for fourth quarter was $19.1 million, an increase of 46% year-over-year. Operating loss was $0.7 million this quarter, an improvement of 80% year-over-year. Non-GAAP operating income turned positive for the first time at $0.3 million compared to a non-GAAP operating loss of $2.8 million last year.

由於我們優化了與提高效率相關的行銷策略，本季行銷費用年減 25% 至 170 萬美元。一般及管理費用增加 14% 至 280 萬美元，主要是由於業務擴張和專業服務。第四季總支出為 1,910 萬美元，年增 46%。本季營運虧損為 70 萬美元，年減 80%。非 GAAP 營業收入首次轉正，達到 30 萬美元，去年非 GAAP 營業虧損為 280 萬美元。

Net loss for UP Fintech was $0.6 million in the fourth quarter of 2019 compared to a net loss of $2 million in the fourth quarter of 2018. Our net loss of $0.6 million this quarter was primarily due to a $1.9 million foreign currency exchange loss we laid it out as other expenses.

UP Fintech 2019 年第四季的淨虧損為 60 萬美元，而 2018 年第四季的淨虧損為 200 萬美元。本季我們淨虧損 60 萬美元，主要是因為我們將其列為其他費用的 190 萬美元外匯損失。

Let me elaborate a little bit more on this FX loss. As of now, we booked majority of our revenue and acquired assets in New Zealand entity. Under New Zealand regulation, financial reporting needs to be in local currency, which is New Zealand dollar, while most of our revenue and asset inflows are settled in USD or Hong Kong dollar on a daily basis. So our New Zealand entity prepares local financial reporting on a monthly or quarterly basis, there will be difference due to different exchange rate when revenue and related asset are booked and when reporting is done.

讓我詳細說明一下這種外匯損失。截至目前，我們的大部分收入和收購的資產都來自紐西蘭實體。根據紐西蘭的法規，財務報告需要以當地貨幣（即紐西蘭元）為單位，而我們大部分的收入和資產流入每天都以美元或港元結算。因此，我們的紐西蘭實體按月或按季度準備當地財務報告，在登記收入和相關資產以及完成報告時，由於匯率不同，會有差異。

So in the fourth quarter, New Zealand dollar has been gradually rising against the U.S. dollar and Hong Kong dollar. So we booked this difference as a FX loss. There was low FX transaction took place and the low cash loss. It's just a pure accounting treatment to reconcile the difference between our consolidated book and local book.

所以在第四季度，紐西蘭元兌美元和港元一直在逐步上漲。因此，我們將這筆差額記為外匯損失。外匯交易量較低，現金損失也較低。這只是一種純粹的會計處理，旨在協調我們的合併帳簿和本地帳簿之間的差異。

And our non-GAAP net income was $0.3 million this quarter as compared to a USD 1.2 million non-GAAP net loss in the fourth quarter of 2018. So to summarize, we are satisfied with our progress in the fourth quarter. Revenue mix is more balanced, new accounts with deposit showed accelerated growth quarter-over-quarter and year-over-year, and the total client assets also grew at a fast pace. We are confident now as we execute the strategies laid out in Tianhua's earlier remarks, we can deliver good growth for 2020. This concludes our prepared remarks. Now we can open for questions.

本季我們的非 GAAP 淨利潤為 30 萬美元，而 2018 年第四季的非 GAAP 淨虧損為 120 萬美元。總而言之，我們對第四季的進展感到滿意。收入結構更為均衡，新存存款帳戶環比和年比均呈現加速成長，客戶總資產也較快成長。我們現在有信心，透過執行天華先前演講中提出的策略，我們能夠在 2020 年實現良好的成長。我們準備好的演講到此結束。現在我們可以開始提問了。

(Operator Instructions) Your first question comes from the line of Lesley Liu from HSBC.

（操作員說明） 您的第一個問題來自匯豐銀行的Lesley Liu。

I have 3 questions today. First 1 is that, why is our trading volume down Q-on-Q but commission income up Q-on-Q? And second question is about the liquidity and risk management, could management share with us the liquidity situations and also the margin call situations recently, especially during this month? And the third question is about the competitive advantage. So what's the competition strategy for us as we have seen that a lot of similar internet brokers for overseas securities trading recently have sprung up in China and also invested by some Internet companies, quite a lot of apps are -- join this competition. So what do you think is our competitive advantage compared to all these competitors?

我今天有 3 個問題。第一個是，為什麼我們的交易量較上季下降，但佣金收入較上季上升？第二個問題是關於流動性和風險管理，管理階層能否與我們分享最近，特別是這個月的流動性狀況以及追加保證金的情況？第三個問題是關於競爭優勢。那麼我們的競爭策略是什麼呢？因為我們看到最近國內出現了很多類似的海外證券交易互聯網經紀商，而且也有一些互聯網公司投資，相當多的應用程序都在加入這個競爭。那麼，您認為與所有這些競爭對手相比，我們的競爭優勢是什麼？

Thanks, Lesley. I will answer your question number 1 and the number 2. Then Tianhua Wu will answer your question number 3, okay? So let me answer your second question first. What's the liquidity issue or how we manage the risk. So at Tiger, we have really -- I would say very prudent margin policies. So we do have a team of risk measures to monitor client's position, especially during this volatile time. So to answer your question, there was no margin call and no principal losses we have experienced so far. We will keep accessing our prudent strategies going forward to make sure with the volatile market backdrop, we're not going to suffer any losses in those phases. And to answer your first question, the trading volume difference and commission, the blended commission. So at Tiger, we do have a lot of people trading futures and also a lot of people trading equities. So if you just use the overall trading volume to calculate a blended commission, I think sometimes it's getting more volatile. It's not really a good indicative commission of how we operate our business. So we give you the clear cash equity conditions, which means it's more stable. So the rate increased from 5 bps in fourth quarter 2018 to 8 bps in fourth quarter 2019 is because in the U.S., we charged by shares. And in fourth quarter 2019, there are people trading more low dollar amount shares, which means even though the total value looks low, but actually, there are more shares to be traded. So that's why our cash equity commission has gone up from 2018 fourth quarter. Tianhua?

謝謝，萊斯利。我回答你的問題一和問題二。然後吳天華回答你的問題三，好嗎？那我先回答你的第二個問題。流動性問題是什麼，或者我們如何管理風險。因此，在老虎，我們確實擁有非常謹慎的保證金政策。因此，我們確實有一個風險措施團隊來監控客戶的頭寸，特別是在這個動盪的時期。因此，回答你的問題，到目前為止，我們沒有經歷過追加保證金和本金損失的情況。我們將繼續採取審慎的策略，以確保在動盪的市場背景下，我們不會在這些階段遭受任何損失。回答你的第一個問題，交易量差異和佣金，混合佣金。所以在老虎，我們確實有很多人交易期貨，也有很多人交易股票。因此，如果您僅使用整體交易量來計算混合佣金，我認為有時它會變得更加波動。這實際上並不是一個很好的指示性委員會，可以說明我們如何經營我們的業務。所以我們給你明確的現金股權條件，這意味著它更穩定。因此，利率從 2018 年第四季的 5 個基點增加到 2019 年第四季的 8 個基點，因為在美國，我們按股票收費。而在2019年第四季，有更多的人交易低美元金額的股票，這意味著儘管總價值看起來很低，但實際上有更多的股票可供交易。這就是為什麼我們的現金股權佣金比 2018 年第四季上升。天華？

(foreign language)

（外語）

[Interpreted] Okay. Let me just quickly translate. So the landscape of brokers -- actually brokerage business has been around for a long time. Same as the reason we started our business 6 years ago, is we think there are a lot of areas we can improve. And there are a lot of optimizations we can do. So compared to other Internet brokers, especially those new start-ups. First of all, Tiger has a lot of licenses. For example, in the U.S., in Australia, Singapore and New Zealand. And it took a while -- will take a while for those -- the newcomers to get all relevant licensing and there's knowledge and know-how how to run those new broker-dealer business. So that's one differentiator we have. The second differentiator is most of those online brokers, especially china online brokers. They don't have U.S. self-clearing license, and they cannot clear trades by themselves. That's the reason we acquire Marsco. We hope we can be able to self clearing in the U.S.

[解釋]好的。讓我快速翻譯一下。所以經紀人的格局——實際上經紀業務已經存在很久了。就像我們 6 年前創業的原因一樣，我們認為還有很多方面可以改進。我們可以做很多優化。所以與其他網路經紀商相比，尤其是那些新成立的新創公司。首先，Tiger擁有大量的牌照。例如，在美國、澳洲、新加坡和紐西蘭。新來者需要一段時間才能獲得所有相關許可，並掌握如何經營這些新的經紀自營商業務。這就是我們的優勢之一。第二個區別是大多數線上經紀商，尤其是中國線上經紀商。他們沒有美國的自我清算牌照，也無法自行清算交易。這就是我們收購 Marsco 的原因。我們希望能夠在美國進行自我清算。

Once we become self clearing, it can create a huge barrier to entry because we are really building the infrastructure of brokers from bottom up. And this will take a long time and then -- for the newcomers to catch up. The third thing is on the product offering is, what we want to do now is to enhance user experience with a different type of product offering. So Tiger pioneered IPO subscription for Chinese ADRs. And typically, retail investors, they most likely will get the most allocation from Tiger.

一旦我們實現自我清算，它可能會造成巨大的進入壁壘，因為我們實際上是自下而上建立經紀商的基礎設施。這將需要很長時間才能讓新來者迎頭趕上。第三件事是關於產品，我們現在想做的是透過不同類型的產品來增強使用者體驗。因此，老虎開創了中國ADR IPO認購的先河。通常，散戶最有可能從老虎那裡獲得最多的配置。

During the past years, we participated in those hot IPOs like PDD and Zoom. And also give us a competitive edge in terms of how we offer differentiated product to retail investors. And also, we have the Fund Malls and cash plus, those wealth management product. It's also another way for us to try to have a comprehensive product offering to enhance user experience. So combine those 3 points together, I think there is -- there will always be competition, but I think these are the differentiated factors that can set us apart.

在過去的幾年裡，我們參與了拼多多、Zoom等熱門IPO。並且在如何向散戶投資者提供差異化產品方面也使我們具有競爭優勢。另外，我們還有基金商城和現金加這些理財產品。這也是我們嘗試提供全面的產品來增強使用者體驗的另一種方式。因此，將這三點結合在一起，我認為競爭永遠存在，但我認為這些是可以使我們與眾不同的差異化因素。

Your next question comes from the line of Daphne Poon of Citi.

你的下一個問題來自花旗銀行的 Daphne Poon。

So also 3 questions from my side. The first one is regarding the other revenue. So there is a big jump in the fourth quarter. I understand the part that is because of the IPO subscription. But can you just help us break down like how much is in different category? That how much is from the IPO underwriting related and also help us from the interest income on the bank deposits? And whether you see that strong -- other revenue would be sustainable going forward? And the second question is regarding the current rate cut cycles. Have you done any SPC analysis? What would be the impact on your earnings, and whether that will affect the pricing on your margin loans as well? And the last question is about -- regarding the reasons of coronavirus situation. I'm actually wondering that whether that has -- benefits you in terms of your new plan growth and also your turnover? Because we understand that from some of your peers and also for the onshore Chinese investors that the trading activity in the stock market actually pick up quite a bit during this virus outbreak. So just want to get a sense of the trend you see in Q1.

我這邊也有 3 個問題。第一個是關於其他收入。所以第四節有一個很大的跳躍。我理解這部分是因為IPO認購的。但你能幫我們細分一下不同類別的數量嗎？那有多少是IPO承銷相關的，同時也幫助我們從銀行存款上獲得利息收入呢？您是否認為其他收入的強勁勢頭可以持續下去？第二個問題是關於目前的降息週期。你做過SPC分析嗎？這會對您的收入產生什麼影響？這是否也會影響您的保證金貸款的定價？最後一個問題是關於冠狀病毒情況的原因。我實際上想知道這是否對您的新計劃增長和營業額有好處？因為我們從一些同業以及中國境內投資者那裡了解到，在這次病毒爆發期間，股市的交易活動實際上有所增加。所以只是想了解第一季的趨勢。

Thanks, Daphne. So let me answer your question 2 first. Then Tianhua will answer question 3. And for number one, Tianhua and I will split. Because I think that's 2 questions actually in question number 1. So in terms of the rate cuts, I think your question is, how is that going to affect our business, right? So the rate cut on liability side because we don't have much there or loan. So it doesn't help us to reduce any funding cost. But going forward, we were looking at opportunities to put on debt there because right now if the liquidity is cheap as nice as we can generate decent return and spread on that, that is something we will consider. On the asset side, for the first quarter, I think it's still, okay, [interesting time]. For the third -- starting from second quarter, we will wait and see because right now, a lot of banks, they lowered their interest rate to 0. And also our partners -- our clearing brokers partners, they also lowered their interest rate to 0. So if you just look at the second quarter, it could have an impact on our interest generating income. But how big is that impact is yet to see because we just started the 0 interest rate cycle. But still, we still have some banker partners offer interest rates above 0. So we will efficiently allocate our cash or our client assets to make sure we can generate returns out of the (inaudible) cash.

謝謝，達芙妮。那我先回答你的問題2。然後天華會回答第三個問題。第一個問題，我和天華會分開。因為我認為這實際上是問題 1 中的兩個問題。因此，就降息而言，我認為您的問題是，這將如何影響我們的業務，對吧？因此，負債方面的利率下調是因為我們沒有太多的債務或貸款。所以它無助於我們降低任何融資成本。但展望未來，我們正在尋找在那裡發行債務的機會，因為現在如果流動性很便宜，並且我們能夠產生可觀的回報和利差，那麼我們就會考慮這一點。在資產方面，我認為第一季仍然是[有趣的時刻]。對於第三個——從第二季度開始，我們將拭​​目以待，因為現在，許多銀行，他們將利率降至0。還有我們的合作夥伴——我們的清算經紀商合作夥伴，他們也將利率降至0. 0. 因此，如果你只看第二季度，它可能會對我們的生息收入產生影響。但這種影響有多大還有待觀察，因為我們才剛開始零利率週期。但儘管如此，我們仍然有一些銀行家合作夥伴提供高於 0 的利率。因此，我們將有效地分配我們的現金或客戶資產，以確保我們能夠從（聽不清楚）現金中產生回報。

To your first question, in the other revenue section, I would say IPO related is more than 80%, I would say, 85% of the composition. The rest of the 10% to 15% is from interest income of bank deposits. And then I will let Tianhua answer your question, how sustainable is the other revenue. And also, your third question about the coronavirus, how does that impact our trading volumes.

對於你的第一個問題，在其他收入部分，我想說 IPO 相關的比例超過 80%，我想說，85%。其餘的10%至15%是銀行存款利息收入。然後我就讓天華來回答你的問題，其他收入的可持續性如何。另外，關於冠狀病毒的第三個問題，這對我們的交易量有何影響。

(foreign language)

（外語）

[Interpreted] Let me translate the other revenue (inaudible) first. So what Tianhua mentioned is still right now, the pipeline is very strong. Even some of those potential issuers delays or timetable due to the wires, but their intention to get listed still very strong, and we are working with a lot of them to help them with preparation. Because we are a fintech company, so we do -- right now we do a lot of online NDR and roadshow for those guys to help them to manage their IPO timetable. So we think the pipeline is very strong, and we still think the business going forward can generate decent returns.

[解釋] 讓我先翻譯一下其他收入（聽不清楚）。所以天華提到的還是現在，管道非常強大。即使其中一些潛在發行人因線路原因而延遲或時間表，但他們上市的意願仍然非常強烈，我們正在與他們中的許多人合作，幫助他們做好準備。因為我們是一家金融科技公司，所以我們現在就為這些人做很多線上 NDR 和路演，以幫助他們管理 IPO 時間表。因此，我們認為管道非常強大，我們仍然認為未來的業務可以產生可觀的回報。

(foreign language)

（外語）

[Interpreted] Okay. So just briefly recap. What Tianhua mentioned is the -- right now the coronavirus caused a lot of volatility in the market, especially in the U.S. market. So the volatility, first of all, give us -- give people -- got more people are interested and got their attention to investing in the U.S. market and give people the 2-way opportunities we can sure and they come on. So given Tiger's reputation in this -- in U.S. market, it actually does help us to generate more accounts with deposits. That also help us to generate more customer trading volume. So in short, it does help our trading patterns and with our brokerage business.

[解釋]好的。所以簡單回顧一下。天華提到的是——現在冠狀病毒引起了市場很大的波動，特別是在美國市場。因此，波動首先讓我們——讓人們——讓更多的人感興趣並專注於投資美國市場，並為人們提供雙向機會，我們可以肯定，他們會加入。因此，考慮到老虎在美國市場上的聲譽，它實際上確實幫助我們創造了更多的存款帳戶。這也有助於我們產生更多的客戶交易量。簡而言之，它確實有助於我們的交易模式和我們的經紀業務。

Your next question comes from the line of Han Pu of CICC.

你的下一個問題來自中金韓璞的電話。

First congratulations on the strong quarter. I have 2 questions. First is about the Fund Mall. Could you introduce more on the new business and what kind of rates do we plan to charge the investors as well as the fund companies, the depositable fee rates compared to the peers? And secondly is about the customer acquisition. We have 11,000 new customers with deposits on the -- in the fourth quarter. And how many of them were from the Mainland China and the other from oversea regions? Do we have any guidance on the customer position in the coming year as well as the regional location as we try to do more international business?

首先要恭喜季度的強勁表現。我有 2 個問題。首先是基金商城。您能否介紹一下新業務，以及我們計劃向投資者和基金公司收取什麼樣的費率，以及與同行相比的存託費率？其次是關於客戶獲取。第四季度，我們有 11,000 名新客戶存款。其中有多少人來自中國大陸，又有多少人來自海外地區？當我們嘗試開展更多國際業務時，對來年的客戶地位以及區域位置有什麼指導嗎？

(foreign language)

（外語）

[Interpreted] Okay. So to answer your first question Pu, Han regarding the Fund Mall. So the rational we are doing Fund mall is, now additionally, Tiger has a lot of customers, they like to trade that themselves, but we also have a lot of customers who don't really know what to buy. So we want to have Fund Mall those like mutual fund products on our platform to give people more choice. And we also diversify our product offering from active trading to passive trading, so we can capture all the needs of our customers. So how we're going to make money is we're going to make that -- work with our partners on selling and also on fund administration fees. In terms of customer acquisition, so going forward, once we -- our operation is fully underground in Singapore, U.S., Australia, we target to have on a quarterly over a year -- by end of this year, at least 10% of our new accounts come from international, new clients. And also one thing I -- to mention is we hope our ESOP also can account for about like 20% of the new clients on a yearly basis.

[解釋]好的。回答你的第一個問題，樸韓先生關於基金商城的問題。所以我們做基金商城的理性是，現在老虎有很多客戶，他們喜歡自己交易，但我們也有很多客戶不知道該買什麼。所以我們希望在我們的平台上有基金商城這樣的共同基金產品，給人們更多的選擇。我們還將產品提供多樣化，從主動交易到被動交易，這樣我們就可以滿足客戶的所有需求。因此，我們賺錢的方式就是與我們的合作夥伴合作銷售以及收取基金管理費。在客戶獲取方面，展望未來，一旦我們在新加坡、美國、澳洲的業務完全轉入地下，我們的目標是到今年年底，在一年多的時間裡，至少獲得 10% 的客戶新帳戶來自國際新客戶。我還要提到的一件事是，我們希望我們的 ESOP 也能佔每年新客戶的 20% 左右。

And may I have a follow-on question on the AUM of our cash-plus product currently?

我還有一個關於我們目前現金加產品的資產管理規模的問題嗎？

Right. Okay. So our cash plus AUM right now is still relatively small. It's about like USD 25 million at this moment, where recently, it has been growing pretty decent because the 7 day return, given the volatility has been pretty attractive, that's like one product managed by our in-house asset management team.

正確的。好的。所以我們現在的現金加上資產管理規模仍然相對較小。目前大約是 2500 萬美元，最近它的成長相當不錯，因為考慮到波動性，7 天的回報相當有吸引力，這就像我們內部資產管理團隊管理的產品。

Your next question comes from Lesley Liu from HSBC.

您的下一個問題來自匯豐銀行的 Lesley Liu。

Just a follow-up question on the cash plus product because it's now the extremely low rate environment, are we seeing any margin pressure for this product? And also, just wondering the latest update of the Hong Kong license. What's the obstacles that we are facing for -- apply for that?

只是關於現金加產品的後續問題，因為現在是極低的利率環境，我們是否看到該產品有任何利潤壓力？另外，只是想知道香港許可證的最新更新。我們申請時面臨的障礙是什麼？

So to answer your first question on the cash plus. We don't have any margin pressure because we -- first of all, it's not levered. And also like we invest in very liquid products like TBs and other fixed income. So far, we don't have any margin pressure. And then your question regarding the license, we don't really come under license, but I think you can follow our release once we have something to publish.

所以回答你關於現金加的​​第一個問題。我們沒有任何保證金壓力，因為我們——首先，它沒有槓桿。就像我們投資流動性很強的產品，如 TB 和其他固定收益產品。到目前為止，我們沒有任何利潤壓力。然後是關於許可證的問題，我們並沒有真正獲得許可證，但我認為一旦我們有東西要發布，您就可以關注我們的發布。

There are no more further question at this time. I would now like to hand the conference back to today's presenters. Please continue.

目前沒有更多問題。現在我想把會議交還給今天的主持人。請繼續。

Hello, this is Clark. I would like to thank everyone for joining our call today. I am now closing the call on behalf of the management team here at UP Fintech. We do appreciate your participation in today's call. If you have any further questions or concerns, please reach out to our Investor Relations team. This concludes the call, and thank you very much for your time.

你好，我是克拉克。我要感謝大家今天加入我們的電話會議。現在我代表 UP Fintech 的管理團隊結束這通通話。我們非常感謝您參加今天的電話會議。如果您有任何其他問題或疑慮，請聯絡我們的投資者關係團隊。通話到此結束，非常感謝您抽出寶貴的時間。

Ladies and gentlemen, this concludes our conference for today. Thank you for participating. You may now all disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。你們現在可以斷開連結了。