老虎證券 (TIGR) 2020 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holdings Limited Third Quarter 2020 Earnings Conference Call. (Operator Instructions) I must advise you that this conference is being recorded today, Wednesday, November 25, 2020.

女士們、先生們，感謝大家的支持，歡迎參加 UP Fintech Holdings Limited 2020 年第三季財報電話會議。（操作員說明）我必須通知您，本次會議將於今天（2020 年 11 月 25 日星期三）進行錄製。

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

現在我想將會議交給今天的第一位發言者克拉克·S·蘇西先生。謝謝。請繼續。

Thank you, Ravathi. Hello, everyone, and thank you for joining us for the call today. UP Fintech Holding Limited's third quarter 2020 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，拉瓦蒂。大家好，感謝您今天加入我們的電話會議。UP Fintech Holding Limited 的 2020 年第三季財報於今天稍早發布，可在我們的投資者關係網站 ir.itiger.com 以及 GlobeNewswire Services 上取得。

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 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 from the Q&A session that follows their remarks.

今天，UP Fintech 董事長兼首席執行官吳天華先生參加了電話會議；曾約翰先生，財務長；美國老虎證券執行長黃磊先生；以及我們的財務總監 Kenny Zhu 先生。吳先生將概述我們的業務運營並討論公司亮點。然後曾先生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. 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 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 25, and our annual report on Form 20-F filed on April 29, 2020. We undertake no obligation to update any forward-looking statements, except as required under applicable law.

現在讓我來報道安全港。我們即將發表的聲明包含 1995 年美國私人證券訴訟改革法案意義內的前瞻性聲明。許多因素可能導致實際結果與任何前瞻性聲明中包含的結果有重大差異。有關可能導致實際結果與前瞻性陳述中的結果存在重大差異的因素的更多信息，請參閱我們今天（11 月25 日）提供的表格6-K 以及我們於4 月29 日提交的表格20- F 年報。2020. 2020.除適用法律要求外，我們不承擔更新任何前瞻性聲明的義務。

It is my pleasure to now induce 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.

我很高興現在邀請我們的董事長兼執行長吳先生。吳先生將用中文發言，隨後提供英文翻譯。請吳先生發言。

[Interpreted] Hello, everyone, and thank you very much for attending our Q3 2020 Earnings Conference Call.

【解讀】大家好，非常感謝大家參加我們的2020年第三季財報電話會議。

As a result of rapid growth in client numbers, as well as our strong commitment to continuous upgrade of our trading platform and services, operational and financial metrics, displayed strong improvement. In the third quarter, total revenue was $38 million, an increase of 148% from the same period last year and a record high for our firm.

由於客戶數量的快速成長，以及我們對持續升級交易平台和服務的堅定承諾，營運和財務指標顯示出強勁的改善。第三季總營收為3,800萬美元，較去年同期成長148%，創公司歷史新高。

Operating income and net income also demonstrated healthy growth. Operating income reached $7.4 million and net income reached $3.8 million and $5.3 million on GAAP and non-GAAP basis. In the third quarter, we added 46,800 funded accounts, 7x the quarterly growth rate in the same period last year. And total funded accounts reached 214,700, an increase of 110% on the same period last year.

營業收入和淨利也呈現健康成長。以 GAAP 和非 GAAP 計算，營業收入達到 740 萬美元，淨利潤分別達到 380 萬美元和 530 萬美元。第三季度，我們新增了 46,800 個資金帳戶，是去年同期季度成長率的 7 倍。資金帳戶總數達21.47萬個，年增110%。

I am also happy to report that on October 28, 2020, we reached a major milestone as total client accounts reached 1 million. This is especially notable given our 5-year operating history. Total account balance continued to grow nicely and reached $10.9 billion this quarter, a 188% increase over the same period last year.

我還很高興地向大家報告，2020 年 10 月 28 日，我們實現了一個重要的里程碑，客戶帳戶總數達到 100 萬。考慮到我們 5 年的營運歷史，這一點尤其值得注意。帳戶總餘額持續良好成長，本季達到 109 億美元，比去年同期成長 188%。

Average client assets also increased 37%, from $37,000 same quarter last year to $50,000 this quarter, as client numbers and assets continue to increase at a healthy pace. I am confident that our firm will continue to produce satisfactory results for our shareholders.

隨著客戶數量和資產繼續以健康的速度增長，平均客戶資產也增加了 37%，從去年同季度的 37,000 美元增至本季度的 50,000 美元。我相信我們公司將繼續為股東創造滿意的績效。

In the past half year, our firm reached 3 major milestones.

在過去的半年裡，我們公司實現了三個重大里程碑。

First and foremost, our internationalization strategy is showing good results. Today, we have licensed subsidiaries in the U.S., Australia, Singapore and New Zealand. Every day, we have investors from these countries choose us to open accounts and trade. Despite the relative scale of our firm, we are an international company that enables global clients to use 1 account to trade global equities in the U.S., Hong Kong, Singapore, Australia and China through the connect programs; as well as other securities, such as futures, options and a wide range of mutual funds that invest in equities, bonds and currencies.

首先，我們的國際化策略正在顯現良好成效。如今，我們在美國、澳洲、新加坡和紐西蘭擁有獲得許可的子公司。每天都有來自這些國家的投資者選擇我們開戶和交易。儘管我們公司的規模相對較大，但我們是一家國際公司，透過連接計劃，全球客戶可以使用 1 個帳戶在美國、香港、新加坡、澳洲和中國交易全球股票；以及其他證券，例如期貨、選擇權和投資於股票、債券和貨幣的各種共同基金。

Overseas clients now account for over 20% of our newly funded accounts, and we are confident this number can increase to more than 50% in the next 12 to 24 months.

目前，海外客戶占我們新增資金帳戶的 20% 以上，我們有信心在未來 12 至 24 個月內這一數字可以增加到 50% 以上。

Second, we have evolved from a pure discount broker to offering more comprehensive services. Presently, some may harbor the impression that we are still a discount online broker that facilitates retail clients to trade U.S. and Hong Kong equities. Of course, this is where we were when we started our business 5 years ago. But as of today, our business model has evolved with brokerage as the core, augmented by strong parallel growth in institutional services, investment banking, ESOP and our international expansion. In addition to serving our highly engaged clients, we also service institutional investors. In addition to brokerage business, we are also a tech investment bank.

其次，我們已經從純粹的折扣經紀商發展到提供更全面的服務。目前，有些人可能會認為我們仍然是一家折扣線上經紀商，方便零售客戶交易美國和香港股票。當然，這是我們5年前創業時的情況。但截至今天，我們的業務模式已經以經紀業務為核心，並透過機構服務、投資銀行、員工持股計畫和國際擴張的強勁並行成長而增強。除了為高度參與的客戶提供服務外，我們還為機構投資者提供服務。除了經紀業務，我們也是一家科技投資銀行。

Year-to-date, in 2020, we have served as an underwriter in 12 Chinese ADR IPOs. In Q3, we underwrote the IPOs of Li Auto and Xpeng Motors, among others. In Hong Kong, we were also an international underwriter for New Oriental Education's Hong Kong listing.

2020 年迄今，我們已擔任 12 起中國 ADR IPO 的承銷商。第三季度，我們承銷了理想汽車、小鵬汽車等公司的IPO。在香港，我們也擔任新東方教育香港上市的國際承銷商。

I would like to express my sincere gratitude to the aforementioned firms for placing their trust in Tiger. It is a testament to the strength of our platform and our reputation in the market that, after commencing our investment banking business just 2 years ago, we have already become #1 in the world by deal count for underwriting Chinese ADR issuers.

謹對上述企業對泰格的信任表示誠摯的謝意。自兩年前開展投資銀行業務以來，我們承銷中國 ADR 發行人的交易數量已躍居全球第一，證明了我們平台的實力和市場聲譽。

Our ESOP management system also continues to demonstrate impressive growth as we lower the barriers and reduce complexity for firms to adopt ESOP systems. In the third quarter, we added 23 new ESOP clients. We expect that these ESOP clients will yield a good number of new high-quality brokerage clients. In the third quarter, ESOP clients accounted for 12.6% of our newly funded accounts. Due to the strong rapport we have built with potential issuers, we expect to maintain our leading position and further expand our market share.

隨著我們降低公司採用 ESOP 系統的障礙並降低複雜性，我們的 ESOP 管理系統也持續展現出令人印象深刻的成長。第三季度，我們新增了 23 位 ESOP 客戶。我們預期這些員工持股計畫客戶將產生大量新的優質券商客戶。第三季度，ESOP客戶占我們新增資金帳戶的12.6%。由於我們與潛在發行人建立了牢固的關係，我們期望保持領先地位並進一步擴大我們的市場份額。

Finally, we are gradually moving to self-clearing. In July of 2019, we acquired Marsco, a licensed U.S. firm with over 30 years experience in self-clearing. This was an important milestone for our firm as we can leverage our proprietary technology to fully integrate front-end to back-end infrastructure, which strengthens our leading position in R&D and financial operations. Presently, over 10% of our users are having their U.S. cash equity trades cleared by Marsco, as well as all new clients acquired by U.S. licensed subsidiaries.

最後，我們正逐步走向自我清理。2019年7月，我們收購了Marsco，這是一家擁有30多年自我清算經驗的美國持牌公司。這對我們公司來說是一個重要的里程碑，因為我們可以利用我們的專有技術將前端到後端基礎設施完全集成，從而鞏固了我們在研發和財務營運方面的領先地位。目前，我們超過 10% 的用戶的美國現金股票交易均由 Marsco 清算，所有新客戶均由美國持牌子公司收購。

As I close my remarks, I would like to provide an update on our share buyback program from April 1 of this year to November 24, 2020, we repurchased 695,287 ADS for an approximate consideration of USD 2.2 million.

在我結束演講時，我想提供我們股票回購計畫的最新情況，從今年4 月1 日到2020 年11 月24 日，我們回購了695,287 股美國存託股，代價約為220 萬美元。

I would now like to invite our CFO, John, to go over our financial results.

我現在想邀請我們的財務長約翰檢查我們的財務表現。

Thanks, Tianhua and Clark. Let me break down our financial performance in the third quarter. All numbers are in U.S. dollar.

謝謝天華和克拉克。讓我來分析一下我們第三季的財務表現。所有數字均以美元為單位。

Commissions were $19.5 million this quarter, up more than 200% from the same quarter last year on the back of [2x] (corrected by company after the call) increase in trading volume and accelerated user growth. Blended commission rate was 3.1 bps this quarter, increased from 2.5 bps same quarter last year, but a decrease from 4 bps in the second quarter of this year. We didn't offer any discount pricing this quarter. The decrease was primarily due to the increase in trading volume.

由於交易量增加和用戶加速成長，本季佣金為 1,950 萬美元，比去年同期增長 200% 以上。[2x]（由公司在電話會議後更正）交易量增加。本季混合佣金率為 3.1 個基點，高於去年同季的 2.5 個基點，但低於今年第二季的 4 個基點。本季我們沒有提供任何折扣價格。減少的主要原因是交易量增加。

Interest-related income increased 26% year-over-year to $9.8 million. Other revenue, which includes our IPO underwriting business, increased close to 6x year-over-year to $8.8 million. We were very active in IPO underwriting, underwrote 8 U.S. and Hong Kong IPOs in the third quarter, and we remain very positive on the incoming deal pipeline.

利息相關收入年增 26% 至 980 萬美元。其他收入（包括我們的 IPO 承銷業務）年增近 6 倍，達到 880 萬美元。我們在 IPO 承銷方面非常活躍，第三季承銷了 8 筆美國和香港 IPO，我們對即將到來的交易管道仍然非常樂觀。

Total revenues were $38 million, up 148% year-over-year, another record-high revenue in our operating history.

總收入為 3,800 萬美元，年增 148%，再創我們營運史上的收入新高。

Now switching to the costs. Interest expense was $2.9 million, increased 110% year-over-year, primarily due to a higher-margin balance. Clearing expense was $3.9 million, increased 4x, in line with our user growth and the increase in trading volume.

現在轉向成本。利息支出為 290 萬美元，年增 110%，主要是由於利潤率餘額較高。清算費用為 390 萬美元，增加了 4 倍，與我們的用戶成長和交易量的增加一致。

Compensation increased 37% year-over-year. We keep adding headcount in key positions to support our business growth. More than 50% of the salary expense comes from research and product team as we keep investing in R&D. Marketing expense was $3.7 million, an increase of 147% from last year as we keep spending in user acquisition to take advantage of the favorable market backdrop.

薪資較去年同期成長37%。我們不斷增加關鍵崗位的員工人數，以支持我們的業務成長。我們持續投入研發，超過50%的薪資費用來自研究和產品團隊。行銷費用為 370 萬美元，比去年增長 147%，因為我們不斷在用戶獲取方面投入資金，以利用有利的市場背景。

As our brand becomes more popular among investors, we see more organic growth. Our funded accounts acquisition cost actually comes down quarter-over-quarter from last year.

隨著我們的品牌在投資者中越來越受歡迎，我們看到了更多的有機成長。我們的資金帳戶獲取成本實際上比去年季度有所下降。

Occupancy expense increased 13% year-over-year to $1.2 million to accompany our headcount growth. Market data usage expense increased 52% year-over-year to support our user growth. SG&A increased 68% due to business expansion.

隨著我們員工人數的成長，佔用費用年增 13% 至 120 萬美元。市場數據使用費用年增 52%，以支持我們的用戶成長。由於業務擴張，SG&A 成長了 68%。

Total costs were $27.8 million. Operating income was $7.4 million. Net income was [$4.9 million] (corrected by company after the call) compared to a net loss of [$1.4 million] (corrected by company after the call) last year. Non-GAAP net income was $5.3 million this quarter, an increase of 7x over same period last year.

總成本為 2780 萬美元。營業收入為 740 萬美元。去年的淨收入為[490萬美元]（由公司在電話通知後更正），而去年的淨虧損為[140萬美元]（由公司在電話通知後更正）。本季非 GAAP 淨利潤為 530 萬美元，比去年同期成長 7 倍。

That concludes our presentation. We are open to Q&A. Thanks.

我們的演講到此結束。我們願意接受問答。謝謝。

(Operator Instructions) We do have a first question from the line of [Eric Lu] from China Renaissance.

（操作員說明）我們確實有來自華興資本的[Eric Lu]的第一個問題。

(foreign language)

（外語）

So let me translate my question. I'm Jacky from China Renaissance. And my question is regarding the ESOP business. I've observed that we had very rapid growth of ESOP business this quarter by adding 23 new customers, which accounted for -- which actually brought 13% of new customers regarding the paying customer. So just wondering, can management help us elaborate more about our business trends and our competitive advantage in ESOP business? And what is the growth outlook for this business?

那麼讓我翻譯一下我的問題。我是來自華興資本的Jacky。我的問題是關於員工持股計畫業務。我觀察到，本季我們的 ESOP 業務成長非常迅速，增加了 23 個新客戶，這實際上帶來了付費客戶新客戶的 13%。所以我想知道，管理層能否幫助我們更多地闡述我們的業務趨勢以及我們在 ESOP 業務中的競爭優勢？該業務的成長前景如何？

(foreign language)

（外語）

Okay. Let me just quickly translate.

好的。讓我快速翻譯一下。

[Interpreted] So Jacky, thanks for the question. So in terms of ESOP, this is business we're very focused. We think it's a priority for our future growth because we think for all the new emerging companies, every company has ESOP plan, so the TAM, the potential market, is super big. So that's why we want to invest a lot of resources into this business.

[解釋] Jacky，謝謝你的提問。所以就員工持股計畫而言，這是我們非常關注的業務。我們認為這是我們未來成長的優先事項，因為我們認為對於所有新興公司來說，每個公司都有ESOP計劃，所以TAM這個潛在市場是超級大的。這就是為什麼我們要在這項業務上投入大量資源。

So how we grow very fast in the past couple of years is, first of all, given we have multiple licenses across different jurisdictions, which give us a lot of like strength or, I would say, that leverage to serve those global companies.

因此，我們在過去幾年中的快速成長首先是因為我們在不同司法管轄區擁有多個許可證，這給了我們很多類似的實力，或者我想說的是，為這些跨國公司提供服務的槓桿作用。

For example, Xiaomi, they have employees in 20, 30 different countries. And each country has different jurisdictions, tax code. To be able to serve those people in different jurisdictions is actually a pretty complicated business. Because we have licenses in multiple locations, we will be offer customized service to service the company's needs under different jurisdictions. That's why you can see in the past year, we pretty much dominate the ADR ESOP business. More than 50% of the ADR issuers choose us as their ESOP provider.

例如，小米，他們在20、30個不同的國家有員工。而且每個國家都有不同的司法管轄區、稅碼。能夠為不同司法管轄區的人們提供服務實際上是一件相當複雜的事情。由於我們在多個地點擁有許可證，因此我們將提供客製化服務來滿足公司在不同司法管轄區的需求。這就是為什麼你可以看到在過去的一年裡，我們幾乎主導了 ADR ESOP 業務。超過 50% 的 ADR 發行人選擇我們作為他們的 ESOP 提供者。

So I think going forward, given we are working on more cases, especially those company cases, gives us a lot more experience to be able to service more future issuers. In the future, we think, from existing clients and deals with future clients, we'll be able to add more ESOP corporate clients. And in return, it will help us to acquire more high-quality future users.

因此，我認為展望未來，鑑於我們正在處理更多案例，尤其是那些公司案例，這將為我們提供更多經驗，以便能夠為更多未來的發行人提供服務。未來，我們認為，從現有客戶以及與未來客戶的交易中，我們將能夠增加更多的ESOP企業客戶。而作為回報，它將幫助我們獲得更多優質的未來用戶。

(Operator Instructions) We have our next question coming from the line of Hanyang Wang from 86Research.

（操作員說明）我們的下一個問題來自 86Research 的 Hanyang Wang。

(foreign language)

（外語）

So let me translate my questions. I have 2 questions. First one is regarding on the commission rate. So in my calculation, the commission rate and the margin interest rate in Q3 was down compared with Q2. So any color on that will be helpful.

那麼讓我翻譯一下我的問題。我有 2 個問題。第一個是關於佣金率。所以根據我的計算，第三季的佣金率和保證金利率都比第二季下降。所以任何顏色都會有幫助。

My second question is about licenses. So do we have any plan to apply for the brokerage license in Hong Kong?

我的第二個問題是關於許可證的。那我們有沒有打算在香港申請經紀牌照呢？

And a follow-on question on the institutional clients. So how many institutional clients we are serving now? What are the average assets that we managed for the institutional investors?

還有一個關於機構客戶的後續問題。那我們現在服務了多少機構客戶呢？我們為機構投資人管理的平均資產是多少？

(foreign language) Hanyang. So I will answer your first question on the take rate and the interest rate, then I will let Tianhua to answer the second and third question.

（外文）漢陽。那我先回答你關於利率和利率的第一個問題，然後我會讓天華回答第二個問題和第三個問題。

Okay. So on the take rate, like I mentioned earlier, so the thing is right now, because the trading volume has gone up so the blended commission rate came down. In the third quarter, our pricing is actually the same versus as in the second quarter. So the decrease of the blended interest -- blended commission was due to the increase in trading volume.

好的。因此，就佣金率而言，就像我之前提到的那樣，現在的情況是這樣的，因為交易量上升了，所以混合佣金率下降了。在第三季度，我們的定價實際上與第二季度相同。因此，混合利息-混合佣金的減少是由於交易量的增加。

And the margin interest rate, actually, in the third quarter, there were quite a few big Hong Kong IPOs, okay? But again, our current business model, we rely our on our clearing partner in Hong Kong to provide the funding. That's why our margin -- the margin income, which is the margin -- the net interest margin, was relatively low. This is something we are working on to address in the future.

還有保證金利率，實際上，第三季度，香港有很多大型IPO，好嗎？但同樣，我們目前的業務模式，我們依賴香港的清算合作夥伴提供資金。這就是為什麼我們的利潤率——利潤率收入，也就是利潤率——淨利差相對較低。這是我們未來正在努力解決的問題。

(foreign language)

（外語）

Okay. Let me -- okay, go ahead, Hanyang. (foreign language)

好的。讓我——好吧，繼續吧，漢陽。（外語）

(foreign language)

（外語）

So let me translate that question. So if we compare with interactive brokers, we still serve like a small group of the institutional investors. So could you help us understand how big the market will be to serve the institutional investors?

那麼讓我翻譯一下這個問題。因此，如果我們與互動經紀商相比，我們仍然像一小部分機構投資者一樣。那麼您能否幫助我們了解服務機構投資人的市場有多大？

So you want to know how big is the addressable market of the -- our potential institutional investor targets, right? Overall, how big is the size.

所以你想知道我們潛在的機構投資者目標的潛在市場有多大，對吧？整體來說，尺寸有多大。

Yes.

是的。

(foreign language)

（外語）

[Interpreted] Okay. So Hanyang, let me just elaborate a little bit more. So in terms of how big is the market, we think it's very hard to pin down our exact number because there are a lot of new, I would say, institutional investor coming to the market, and some of them has grown from small to a much bigger size. So what we think is there is definitely a huge need for banks like us or for like specialized broker like us to service those smaller institutional investors.

[解釋]好的。漢陽，讓我再詳細說明一下。因此，就市場有多大而言，我們認為很難確定確切的數字，因為我想說，有很多新的機構投資者進入市場，其中一些已經從小規模發展到大規模。尺寸更大。因此，我們認為，對於像我們這樣的銀行或像我們這樣的專業經紀人來說，肯定有巨大的需求來為那些規模較小的機構投資者提供服務。

So while we can service them now, just to recap what Tianhua said earlier, is we offer a differentiated service. For example, they can now open account with bigger bank to have a prime brokerage account, but we can help them to set up the account with live traders to help them win all the trades and also help them to grow. Sometimes, we'll help them to do even fundraising as well. So those are the stuff we can offer to smaller institutional investors.

因此，雖然我們現在可以為他們提供服務，但回顧天華之前所說的，我們提供的是差異化服務。例如，他們現在可以在更大的銀行開設帳戶以獲得主要經紀帳戶，但我們可以幫助他們與現場交易者建立帳戶，以幫助他們贏得所有交易並幫助他們成長。有時，我們甚至會幫助他們籌款。這些就是我們可以向小型機構投資者提供的東西。

And to your second question on the license. Definitely, Hong Kong is definitely a huge market for us. As you can see in our financial performance, same as the same first question you asked, it's like we left too much money on the table because we don't have the Hong Kong license yet. So definitely, we will let the market know once we have progress in this space. Thank you.

關於許可證的第二個問題。毫無疑問，香港對我們來說絕對是一個巨大的市場。正如你在我們的財務表現中看到的，就像你問的第一個問題一樣，我們好像因為還沒有香港牌照而留下了太多的錢。因此，一旦我們在這個領域取得進展，我們肯定會讓市場知道。謝謝。

We have our next question coming from the line of [You Fan] from [CICC].

我們的下一個問題來自[CICC]的[You Fan]。

(foreign language)

（外語）

Okay. So let me translate my questions. Well, the first question is about the investment banking business. So we noted that in this quarter, we have made great achievements in existing Chinese companies to list in the U.S. market. So what kind of special efforts have we made in the investment banking side? And compared to other competitors, what are our unique advantages?

好的。那麼讓我翻譯一下我的問題。那麼第一個問題是關於投資銀行業務的。所以我們注意到，這個季度，我們現有的中國企業赴美上市取得了很大的成績。那我們在投行方面做了哪些特別的努力呢？與其他競爭對手相比，我們的獨特優勢是什麼？

And the second question is about the international layout. So how do we acquire customers in countries like Singapore, Australia and New Zealand? And is there any difference in customer acquisition cost between these areas and Mainland China?

第二個問題是關於國際佈局。那我們要如何在新加坡、澳洲、紐西蘭等國家獲得客戶呢？這些地區的獲客成本與中國大陸有何差異？

(foreign language)

（外語）

Okay. Let me quickly translate the investment banking question first.

好的。我先快速翻譯一下投資銀行問題。

[Interpreted] So we pioneered the U.S. IPO distribution service back in 2017 on the back of our strong demand from retail and institutional investors. As you can see, our investment banking business has been growing very rapidly. Since then, within 2 years time frame, we have been working on more than 60 U.S. and Hong Kong IPOs. I think this year, we have been working on pretty much all the big name, popular ADR IPOs.

[解讀]鑑於散戶和機構投資者的強烈需求，我們早在 2017 年就率先推出了美國 IPO 分銷服務。正如您所看到的，我們的投資銀行業務成長非常迅速。此後，在兩年的時間裡，我們已經處理了 60 多起美國和香港的 IPO。我認為今年，我們一直致力於幾乎所有大牌、受歡迎的 ADR IPO。

So how we can crack into the market when there are a lot of competition from traditional international and domestic investment banks? Because our principal philosophy is we have to -- we want to bring in value-added service to the issuer. So for example, we provide very steady demand. Those demands, especially during the tough market, like last year, 2019, has been very helpful to the issuer to be able to get the IPO done. And also, we provide very customized DSP and IR/PR services to the issuers, which traditional banks, they don't really active in that kind of space. So this gives us an opportunity to be able to service those new economy issuers.

那麼，在國際國內傳統投入競爭激烈的情況下，我們該如何進入市場呢？因為我們的主要理念是我們必須－我們希望為發行人帶來增值服務。例如，我們提供非常穩定的需求。這些需求，特別是在市場嚴峻的時期，例如去年，2019 年，對於發行人完成 IPO 非常有幫助。此外，我們也為發行人提供非常客製化的 DSP 和 IR/PR 服務，而傳統銀行在此類領域並不真正活躍。因此，這使我們有機會為這些新經濟發行人提供服務。

Plus, we have been doing the IPO ourselves a couple of years. So we know all the stuff, like the issuer -- potential issuers, they have to manage when they are doing the IPO. So that's why we have a huge growth in this space. And as an investment basis, also help us to drive more institutional and retail brokerage business.

另外，幾年來我們一直在自己進行首次公開募股。所以我們知道所有的事情，例如發行人——潛在的發行人，他們在進行首次公開發行時必須進行管理。這就是我們在這個領域取得巨大成長的原因。而作為投資基礎，也有助於我們帶動更多的機構和零售經紀業務。

(foreign language)

（外語）

[Interpreted] Okay. So given we are a tech-backed brokerage company, so this gives us the flexibility to enter into new markets and be really adaptive to service the local needs. For example, we saw the needs in Singapore and Australia are the similar opportunities now to what we saw in China a few years ago when we started that business. So we think that there is a huge potential down there.

[解釋]好的。因此，鑑於我們是一家技術支援的經紀公司，這使我們能夠靈活地進入新市場並真正適應服務當地需求。例如，我們現在看到新加坡和澳洲的需求與我們幾年前開始這項業務時在中國看到的機會類似。所以我們認為那裡有巨大的潛力。

And the beauty of international expansion is the funded account conversion rate will be much higher. And also, we can offer very differentiated service versus the local brokers. For example, our commission rates will be much lower than the existing local players. And we help the local people not only trade with their local stocks. And also, we help them to trade in Hong Kong and the U.S. equities.

國際擴張的美妙之處在於資金帳戶轉換率會高得多。此外，與本地經紀商相比，我們可以提供非常差異化的服務。例如，我們的佣金率將比現有的本地玩家低得多。我們不僅幫助當地人交易當地股票。此外，我們也幫助他們進行香港和美國股票的交易。

So we are very bullish about our international expansion strategy. We just started international expansion pretty much in the beginning of this year, and we are seeing very promising results. So we are very confident, in the next 12 to 24 months, our international funded accounts will account for more than 50% of our paying clients.

所以我們非常看好我們的國際擴張策略。我們在今年年初才剛開始國際擴張，我們看到了非常有希望的結果。所以我們非常有信心，在未來12到24個月內，我們的國際資金帳戶將占到我們付費客戶的50%以上。

(Operator Instructions) We do not have any more questions now. I would like to hand the conference back to our speakers today. Please go ahead.

（操作員說明）我們現在沒有更多問題了。我想把今天的會議交還給我們的發言人。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.

你好。這是克拉克。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。

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.

我們非常感謝您參加今天的電話會議。如果您還有任何疑問，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。

Thank you, and have a great day.

謝謝您，祝您有美好的一天。

Thank you.

謝謝。

Thank you. Ladies and gentlemen, that concludes your conference for today. Thank you for your participation. You may all disconnect your lines now. Thank you.

謝謝。女士們、先生們，今天的會議到此結束。感謝您的參與。你們現在可以斷開線路了。謝謝。

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[本筆錄中的英語陳述是由現場通話中的口譯員說出的。]