Q1 2021 UP Fintech Holding Ltd Earnings Call
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Ladies and gentlemen.
On the bi and welcome to the up Fintech holding Ltd first quarter 'twenty 'twenty 1 of earnings conference call. At this time, all participants are in a listen <unk>.
The loss there'll be a presentation and followed the question as the session and.
Must advise you that this conference is being recorded today Tuesday may 25th 'twenty 'twenty 1.
I'd like to hand, the confidence over the the first speaker today, if a clock and Susie and thank you. Please go ahead.
Thank you operator, Hello, everyone and thank you for joining us from a call today.
Up Fintech holding limited's first quarter 'twenty 'twenty 1 earnings release was distributed earlier today and is available on our IR website.
And I are docked Tiger dot com as well as globe Newswire services on the call today from up Fintech are Mr. Woods', Hanwha, Chairman and Chief Executive Officer, Mr. John Zone.
The financial Officer, Mr. Huang Lei CEO of U S Tiger Securities and Mr. Kenny Zhao our financial controller, Mr. Liu will give an overview of our business operations and discuss corporate highlights and Mr. Zone will then discuss our financial results. They will both be available to <unk>.
And for your questions during the Q&A session that follows the remarks now let me cover the safe Harbor the.
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 <unk>.
A number of factors could cause actual results to differ materially from those campaigns and any forward looking statements.
For more information about factors that could cause actual results to materially differ from those and the forward looking statements. Please refer to a form 6K furnished today may 25th 'twenty 'twenty, 1 and our annual report on form 20-F filed on April of 'twenty 8 'twenty 'twenty 1.
We undertake no obligation to update any forward looking statement, except as required under applicable law.
It is my pleasure to now introduce our chairman and Chief Executive Officer, Mr and.
Mr. <unk> will make remarks in Chinese which will be followed by English translation. Mr. Weil. Please go ahead with your remarks.
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Hello, everyone and welcome to Tiger brokers 'twenty 'twenty, 1 first quarter earnings conference call.
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Substantial investments and our platform and services, coupled with strong growth and new clients led to notable increases across our core operating and financial indicators and the first quarter total revenue reached an all time high of $81.3 million.
U S dollars 3.6 times that of the first quarter of last year the.
Growth and operating efficiency of our firm continue to accelerate and.
We reported non-GAAP profit of $23.5 million U S dollars, which was not only 22 times higher than that at the same period last year, but also a sum that exceeded the total for fiscal year 2020.
Another notable achievement was our addition of 117000 funded accounts a new record high for a single quarter.
Clients continue to allocate more capital to a platform and total client assets reached $21 billion 3.9 times higher than the same period last year.
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I would now like to take this opportunity to provide investors with an update on 3 key business initiatives at our company.
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First I am pleased to report that our internationalization strategy is progressing well.
The brokers has established offices and licensed subsidiaries and the U S Australia, Singapore, New Zealand as well as other countries and regions and our group possesses licenses pertained to brokerage investment banking and asset management among others.
Paul what I said.
And our 2020 third quarter earnings.
That our goal was to have offshore clients account for more than a 50% of a quarterly newly funded accounts within the next 6 to 12 months and.
And I'm proud to announce and we have already achieved that objective.
And the first quarter of newly funded the counts over 50% came from outside of China and.
Internationalization and not only helps us fuel use of growth. It also equips us with the knowhow for dealing with regulatory bodies across multiple jurisdictions, which boosts our capability to meet the global investing needs of both individual investors and corporate clients alike.
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Second as a firm scales, we expect our core businesses, namely brokerage.
And banking.
Salt as well as our internationalization strategy to contribute to each other's respective growth.
Our investment banking business continues to be highly active and.
And the first quarter, we participated and 14 of Ipos of which we underwrote 8 such as true and keeping a group among others.
We continue to remain appreciative of the trust issuers place and our firm.
We started this business just a little over 2 years ago, but and that short time, we have already become the number 1 underwriter by deal count for Chinese ADR issuance.
Moving on.
Growth and our Aesop business remains a very impressive in.
And the first quarter, we added 41, new Aesop clients for a Grand total of 165 clients. We are thankful of the trust corporate clients have conferred on a farm and up.
I'm happy to report and the last year of the Chinese issuers that have pursued a U S listing approximately 50% of issuers chose tiger to provide Aesop service.
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Yes.
Finally.
I would like to provide an update on our self clearing capabilities and July of 2019, when we acquired bars call a broker dealer with over 30 years experience and self clearing. We also acquired the self clearing license. This acquisition is a landmark and a firm's history as we know exert control over every aspect of a.
Brokerage system.
While implementing self clearing and has of course range, new technical complaints and operational requirements and has also created a new moat around our business.
I am pleased to report that as of the first quarter of 2021 over 30% of our clients were having a U S cash equities self cleared by Moscow.
In addition, since the fourth quarter of 2020, all new clients on board and the U S. We're having a trades of self cleared by Morris co.
Furthermore, all new Chinese clients are having their U S cash equities trades of cleared by the <unk> com.
And we project that by the end of this year, we will be self clearing over 70 per cent of our clients find.
Finally, we are grateful to the consortium of leading institutional investors, who participated in a convertible bond issuances in February and April of this year, we and total raised $155 million, which we will employ to advance our international expansion as well as make further investments and our research and.
And the capabilities I would now like to invite our CFO John to review our financial results.
Yeah.
That's kind of behind the clock, let me go through our first quarter of financial performance, all lumber side and the U S dollar.
As Tamara mentioned, the earlier of our business units, including both retail and a corporate services have performed very well this quarter. Our internationalization and is also progressing rapidly that enable us to acquire more user increased customer to funded a count conversing and bringing more kind of assets.
As a result total revenue up well.
The $81.3 million for this quarter and an increase of 256% from the same quarter of last year.
Within total revenue Commission were 53 million and an increase of 277 per saying year over a year as our user base is much bigger versus a year ago and all of the users have been active with favorable market backdrop and the first quarter.
Interest related income, which combines financing service fee and the interest income increased 179% year over a year to reach $17.9 million and this quarter also due to a bigger user base and the increase the market activities.
Other revenue most of most of the revenue from all of our investment banking business increased 331% year over a year to a $10.5 million.
Our underwriting pipeline is very strong and we've maintained the number 1 position in terms of deal Constable Chinese ADR underwriting.
Now on the cost.
Interest expense increased 480% of year over a year to $5.5 millions of this quarter and.
And I always our user growth and increase in margin and activities.
Execution and a clearing expense.
We're a $8.2 million this quarter increased of 366% year over a year and and the like the semi person and quarter over quarter as we have more consolidator of comms customers and are starting to a record more clearing expense on our book.
Thanks to a gradual ramp up of self clearing.
Our clearing cost as a percentage of completion actually came down quarter over quarter from a 16, 5% in the fourth quarter last year to a 15, 5% this quarter.
And when we had a huge increase in consolidated alcon customer of this quarter.
Expect clearing cost of federal come down when we self care from more clients.
Employee compensation and increased 58 per cent year over year to $16.5 million.
As we keep adding head count, especially in R&D and the products to supply of global expansion.
A long ways to increase occupancy and expense increased slightly to $1.2 million this quarter.
D N a increased 78% year over year to $4.1 million this quarter.
Marketing expenses were $12 a million dollars this quarter and an increase of 371% from the same quarter last year as first quarter market sentiment was a favorable towards the investors and the way. It took this opportunity for client acquisition.
We will keep spending and branding and customer acquisition to a company our global expansion.
Yeah.
As already started off a rapid user growth communication on the data usage also increased a 100, 116% year over year to $4 million this quarter.
After taking all of the expense our net income was 21.1 million this quarter versus a lot of loss of <unk> 2 million in the same quarter last year non.
Non-GAAP net income, which excludes share based compensation impairment loss from equity investments on a fair value change from convertible bonds was $23.5 million of this quarter increased 21 times from the same quarter of last year.
Well I have come through our presentation.
Operator, please open the life of Q&A.
Thank you yes.
As a reminder to ask a question and you need the best part of 1 on your telephone.
And they do all of your question. Please press the pound the Hess.
Keith.
And please standby, while we compile the Q&A and Boston.
Once again, please press star.
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Okay. Let me translate the first question. So first of all of yourself is becoming a standard to a deal economy companies.
And we think you know waste a lot of audio economy company coming to the market. We see yourself has a huge potential. So tycho you saw the it's not only us SaaS software and it offers actually a comprehensive service ranging from benefits consulting and trust service coverage of the whole spectrum of stock option management also of as Tiger.
Scope of licenses, we can't service.
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And with <unk> and service companies with.
Global footprints to satisfies a stock option needs.
Our use of service is getting very good brand recognition and especially for Chinese ADR offerings.
In the past year over 50 per some of the Chinese ADR of issuers chose us as they use a provider.
In addition to service the U S and a Hong Kong listed companies now we kind of also prior use of service to Asia listed or potential Asia IPO companies, we see a share you sow market with huge potential and comfort and we can grab a big market share and the HR space as well.
So a lot of without the outflow and team.
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First of all we always work on competition competition is good for Investor day on the for the industry. It's also a driving force for us to keep it in the way and offer a differentiated product and the services.
We feel very confident and to maintain our market leading position and Singapore.
We offer a more trading products versus our competitors.
In addition to U S. Hong Kong, Singapore Equities. We're also we also offer a DLC trading at a far more which is our digital wealth management platform. We also started to offer a U S. IPO subsidies subscription service to quantify the Singapore investors.
This is not a service offered by the existing brokers and a kind of only 2 so by leveraging Tigris market, leading U S IPO of underwriting capability.
Furthermore, we are in the process to apply SPX clearing license once we have the STS clearing license, we can offer a more competitive pricing for a local stock trading and the penetrate deeper into the existing Singapore investment market.
1 more point I want to highlight is our collaboration with Singapore, a local companies. For example last month, we started a co promotion with scrap so far we haven't received the response from both GAAP and Tiger users, we will rule out a more partnerships like this to offer localized the service to a single.
For the investors.
Thanks.
And that's very helpful. Thank you.
The system.
Thank you.
Next question comes from the line of.
Jackie Zillow of China Renaissance.
Please go ahead.
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Growth for the a decent results.
2 questions number 1 and it's about our U S stock itself quite a big progress.
As Joe mentioned all of our clearing fees as a percentage of a recognition revenue start to a decrease Q on Q and <unk> 30 per cent of already existing customers start to switch to Moscow.
Moving on.
So just a once we understand from a.
The stock trading volume perspective.
And 1 can we achieve 100% up query and the.
What is the P&L implications.
And second question is bouts of the AR.
The <unk> product.
So do we plan.
And then to a launch crypto currency trading and the future. Thank you.
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The 1 <unk> and Samsung.
Okay.
Let me translate.
No.
By end of last quarter or U S based on Investor.
Use the March call to clear a U S cash equities.
As of March 31 about 30% of Tigers users are using March for clearing.
A in the first quarter and the second quarter. We just started using March call folio, a cost per on China, reaching.
We expect by the end of this year more than 70% of our users will be a clearing through Moscow.
In terms of trading volume, we think by early next year, we will have all the trading volume for cash equities clear by a Moscow.
And we've already seen clearing cost came down due to self clearing and on a quarter over quarter basis.
We expect clearing cost a further come down once we have more clients trading through moscone.
Just roughly estimate and we'll use the 2020.
Now the clearing expenses as a proxy I think the break here everything by ourself.
Clearing expense cash sale for 30 million USD.
Thanks.
Going to the hobby our.
Our EMEA the channel <unk>.
Hi.
So the hobby Peugeot Assembly. The beat is in cash it will be a proven true we'll see you on additional coming up and said I'm paid to the EPS.
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And the way Homeboy day to move over to the non core.
The co founder and tell you the true.
The way they seem that free to move over to the U K pop.
So a lot of this crypto currency for example, bitcoin has become a more extra acceptable by mainstream investors since last year and the is emerging as a asset class.
Tigers machines to make any interest in more efficient and enjoyable for investors. So crypto is definitely a prada and our pipeline.
Given up quickly as the new asset class and a mainly regulations are still working progress and a tighter we will take a very prudent approach first of all we will only offer a crypto trading to offshore clients. We're on.
And I'm going to offer such services to Chinese nationals.
In addition, the.
Tigers subsidiary offering creates a trading needs to apply a local license and the P complying with local regulation.
For example in the U S brokers needs money service license to offer a critical trading in Singapore, The PSA license.
And the process to apply those licenses.
Thanks.
Okay.
Thank you.
Our next question comes from the line of Julien.
Uh huh.
M C D.
Citigroup. Please go ahead.
So on.
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Oh, Vice Chancellor and my question. Thank you very much part gives me the opportunity to ask question. This is Julia from Citi. I have 1 question, we have seen the market experienced some level of a pullback lately. The management. Please give us guidance in terms of the impact on the business. Thank you.
Yeah.
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Okay.
We do see some moderating market sentiment and the activities in the second quarter.
But are a key priority use of our acquisition.
Has been going very well due to our value added service and more geographic expansion.
We see that a inflow of coming out of a platform even on the market more choppy of Lady and.
From a brokerage perspective relative of volatility is actually a good for our business sentiment.
Selling and restaurant and I wonder where the market pulled back where are you fed Tigers underwriting business.
In the short term market pullback has delayed quite a few of our offerings semi impact of the Tiger and the other investment bank.
But on the other half the market is not a very good we can actually a better differentiation Tigers the service and the capabilities versus traditional banks.
And we actually have a acquire a more mandates mainly as the the bank. Our pipeline is very strong and we look forward to more revenue from our underwriting business later this year. Thanks.
Thank you.
Once again for those who wish to ask a question. Please press star 1 on the telephones.
The name.
Thank you ladies and gentlemen.
Question and answer session and I would like to hand, the conference back to mistake and Susie.
Please go ahead.
I would like to thank everyone for joining our call today I am now close on the call on behalf of the management team here at Tiger. We do appreciate your participation on today's call. If you of any further questions. Please reach out to our Investor Relations team. This concludes the call and thank you very much of a good time.
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Ladies and gentlemen, thank you for standing by and welcome to the up Fintech holding limited growth.
Quota of 'twenty 'twenty, 1 earnings conference call at this time, all participants are in a listen only mode there'll be a presentation followed by question and answer session.
Must advise you that this conference is being recorded today Tuesday may 25th 'twenty 'twenty, 1 I would now like to hand, the conference over to you for a speaker today as a class and Susie and thank.
Thank you. Please go ahead.
Yeah.
Thank you operator, Hello, everyone and thank you for joining us for the call today.
Up Fintech holding limited's first quarter 2021 earnings release was distributed earlier today and is available on our IR website at IR Dot I Tiger Dot com as well as globe Newswire services on.
On the call today from up Fintech are Mr. Woo, Tien <unk>, Chairman and Chief Executive Officer, Mr. John Zone.
Chief Financial Officer.
Mr. Huang Lei CEO of U S Tiger Securities and Mr. Kenny Zhao our financial controller, Mr. Liu will give an overview of our business operations and discuss corporate highlights and Mr. Zone will then discuss our financial results. They will both be available to answer your questions during the Q&A.
And that follows their remarks now let me cover the safe Harbor the.
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.
A number of factors could cause actual results to differ materially from those contained and any forward looking statement for more information about factors that could cause actual results to materially differ from those and the forward looking statements. Please refer to a form 6K furnished today may 25th.
2021 and of our annual report on form 20-F filed on April 28, 2021, we undertake no obligation to update any forward looking statement, except as required under applicable law.
It is my pleasure to now introduce our chairman and Chief Executive Officer, Mr. <unk>, Mr. <unk> will make remarks in Chinese which will be followed by English translation. Mr. Woo. Please go ahead with your remarks.
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Hello, everyone and welcome to Tiger brokers 2021 first quarter earnings Conference call.
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Yeah.
Substantial investments and our platform and services, coupled with strong growth and new clients led to notable increases across our core operating and financial indicators and the first quarter total revenue reached an all time high of $81.3 million.
Dollars 3.6 times debt of the first quarter of last year the.
Profit growth and operating efficiency of our firm continue to accelerate.
We reported non-GAAP profit of $23.5 million U S dollars, which was not only 22 times higher than that at the same period last year, but also a sum that exceeded the total for fiscal year 2020.
Another notable achievement was our addition of 117000 funded accounts a new record high for a single quarter.
Clients continue to allocate more capital to a platform and total client assets reached $21 billion 3.9 times higher than the same period last year.
Okay.
Could I add up in boots up.
So help me on with any of a project.
I would now like to take this opportunity to provide investors with an update on 3 key business initiatives at our company.
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First I am pleased to report that our internationalization strategy is progressing well tiger.
Tiger brokers has established offices and licensed subsidiaries and the U S, Australia, Singapore, New Zealand as well as other countries and regions and our group possesses licenses pertained to brokerage investment banking and asset management among others.
Paul what I said during our 2023rd quarter earnings.
And that our goal was to have offshore clients account for more than a 50% of our quarterly newly funded accounts within the next 6 to 12 months.
I am proud to announce and we have already achieved that objective.
And the first quarter of newly funded the counts over 50% came from outside of China.
Internationally innovation, not only helps us fuel user growth. It also equips us with the knowhow for dealing with regulatory bodies across multiple jurisdictions, which boosts our capability to meet the global investing needs of both individual investors and corporate clients alike.
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Second as our firm scales, we expect our core businesses, namely brokerage.
And banking.
The salt as well as our internationalization strategy to contribute to each other's respect of growth.
Our investment banking business continues to be highly active.
And the first quarter, we participated in 14 of Ipos of which we underwrote 8 such as true and keeping a group among others.
We continue to remain appreciative of the trust issuers place and our firm.
We started this business just a little over 2 years ago, but and that short time, we have already become the number 1 underwriter by deal count for Chinese ADR issuance.
Moving on.
Growth and our Aesop business remains a very impressive in the first quarter. We added 41, new Aesop clients for a grand total of 165 clients.
We are thankful of the trust corporate clients have conferred on a farm and I'm happy to report and in the last year of the Chinese issuers that have pursued a U S listing a P.
Approximately 50% of issuers chose Tiger to provide Aesop service.
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Yes.
And finally.
I would like to provide and update on our self clearing capabilities and can.
July of 2019, when we acquired <unk> call a broker dealer with over 30 years experience and self clearing we also acquired the self clearing license. This acquisition is a landmark and a firm's history as we know exert control over every aspect of a brokerage system.
And while implementing self clearing and because of course range, new technical complaints and operational requirements. It has also created a new moat around our business.
I am pleased to report that as of the first quarter of 2021 over 30% of our clients were having a U S cash equities self cleared by Moscow.
In addition, since the fourth quarter of 2020, all new clients on board in the U S. We're having a trade self cleared by Moscow. Furthermore, all new Chinese clients are having their U S cash equities trades of cleared by Marsh.
And we project debt by the end of this year, we will be self clearing over 70% of our clients find.
And finally, we are grateful to the consortium of leading institutional investors, who participated in a convertible bond issuances in February and April of this year, we and total raised $155 million, which we will employ to advance our international expansion as well as make further investments and a research and.
And the capabilities I would now like to invite our CFO Sean to review our financial results.
Okay.
Since came behind the clock, let me go through our first quarter financial performance all numbers are in the U S dollar.
As <unk> mentioned, the earlier of our business units, including both retail and a corporate services have performed very well this quarter. Our internationalization and is also progressing rapidly that enable us to acquire more user increased customer to funded a con conversing and bringing more kind of assets.
As a result total revenue were $81.3 million for this quarter and increase of 256% from the same quarter of last year.
Within total revenue commissioning of our 53 million and an increase of 277% year over year as our user base is much bigger versus a year ago and our users have been active with favorable market backdrop and the first quarter.
The interest related income, which combines financing service fee and the interest income increased 179% year over year to reach $17.9 million and this quarter also due to a bigger user base and the increase the market activities.
Other revenue most of most of the revenue from our investment banking business increased 331% year over year to a $10.5 million.
Our underwriting pipeline is very strong and we've maintained the number 1 position in terms of deal counts for Chinese ADR underwriting.
Now on the cost.
Interest expense increased 480% year over a year to $5.5 million this quarter.
And I always our user growth and increase in margin and activities.
Execution and clearing expense.
We're on $8.2 million this quarter increased of 366% year over year, and and the 97% quarter over quarter as we have more consolidator of account customers and a starting to a record more clearing expense on our book.
Thanks to a gradual ramp up of self clearing.
Our clearing cost as a percent of condition actually came down quarter over quarter from a 16, 5% in the fourth quarter last year to a 15, 5% this quarter.
And when we had a huge increase in consolidated a cone customer of this quarter.
Expect clearing cost of federal come down when we self care from more clients.
Employee compensation and increased 58% year over year to $16.5 million.
As we keep adding head count, especially in R&D and the products to supply a global expansion.
A long ways headcount increased occupancy and expense increased slightly to $1.2 million and this quarter.
G&A increased 78% year over year to $4.1 million this quarter.
Marketing expenses were $12.8 million this quarter and an increase of 371% from the same quarter last year as first quarter market sentiment was a favorable towards the investors and we took this opportunity for client acquisition.
We will keep spending and branding and customer acquisition to accompany our global expansion.
Yeah.
As a result of a rapid user growth communication on the data usage also increased 100, 116% year over year to $4 million this quarter.
After taking all of the expense our net income was $21.1 million this quarter versus a loss of <unk> 2 million in the same quarter last year non.
Non-GAAP net income, which excludes share based compensation impairment loss on equity investment and a fair value change from convertible bonds was $23.5 million. This quarter increased 21 times from the same quarter of last year.
Well I have come through our presentation.
Operator, please open the life of Q&A.
Thank you yes.
As a reminder to ask a question and you need the class Taiwan on the telephone.
Do the draw your question. Please press the power of a husky.
Please standby, while we compile the Q&A Boston.
And once again, please press star 1.
And 1 for you.
Question.
And that's against these best Taiwan the good question.
So those who each day.
And I ask the question once again, please press, Taiwan and theirs.
Telephone keypad.
The first question comes from the line of Uh Huh.
Please go ahead.
But it wasn't up.
And consequently, she does.
What's the bottleneck.
Please ask the questions now go.
And just talk.
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How should we be on shipping.
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How much of it.
And the day, congrats on such a strong quarter.
I have 2 question and first of all.
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On the growth momentum and.
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Landscape.
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Okay.
Okay. Let me translate the first question. So first of all of yourself is becoming a standard to a new economy companies.
And we think you know we stood up a lot of module economy company coming to the market. We see yourself has a huge potential. So the tiger you saw the it's not only us SaaS software and it offers actually a comprehensive service ranging from benefits consulting and trust service covers the whole spectrum of stock option management also based hygroscope.
The licenses we can't service.
On the.
Different work and.
Service companies with.
The global footprints to satisfy as a stock option needs.
Our use of service is getting very good brand recognition, especially on you for Chinese ADR offerings.
And in the past year over 50 per some of the Chinese ADR issuers chose us as the use of provider.
In addition to service the U S and a Hong Kong listed companies now we kind of also price of service to Asia listed or potential Asia IPO companies, we see a share you sow market with huge potential and the comfort and we can grab a peak market share and the HR space as well.
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Yeah.
Yeah.
First of all we always welcome competition competition is good for Investor day on for the industry. It's also a driving force for us to keep it in the way and offer a differentiated product and the services.
We feel very confident and to maintain our market leading position in Singapore.
We offer a more trading products versus our competitors.
In addition to U S. Hong Kong, Singapore Equities. We're also we also offer a plc trading at a far more which is our digital wealth management platform. We also started to offer a U S. IPO subsidies subscription service to quantify the Singapore investors.
This is not a service offered by the existing brokers and a kind of only do so by leveraging Tigris market, leading U S IPO of underwriting capability.
Furthermore, we are in the process to apply SPX clearing license once we have the STS clearing license, we can offer a more competitive pricing for a low cost stock trading and the penetrate deeper into the existing Singapore investment market.
1 more point I want to highlight is our collaboration with Singapore, a local companies. For example last month, we started a co promotion with scrap so far we have received good response from both GAAP and Tiger users, we will roll out a more partnerships like this to offer localized a service to a single.
For the investors.
Thanks.
And that's very helpful. Thank you.
Thank you.
The next question comes from the line of.
Jackie Zillow of China Renaissance. Your line is open. Please go ahead.
Okay, great. Thank you Juanita and go with you and enjoy a you can see from that you're the only go down either.
If you didn't have a golden Tucson, Zhejiang and shot Ziegler ship 1 of you on Monday.
And equally if you didn't have the tools Linda and Chico's.
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A woman don't trigger them to essentially it's a whole country domagk coach at the end of the cheaper and cheaper.
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The whole keep in the chico's titled a and salvage it's up yeah.
On the whole of Japan, Thiago and teachers true hopefully you caught me too so on synergies.
So it's a hobby.
EBITDA at the end of the Chico's and Soma.
Or a paycheck.
In Asia.
So thanks management and congrats for the a decent.
A recent results.
2 questions number 1 and it's about our U S Doc self query progress.
As John mentioned all of our clearing fees as a percentage of a recognition revenue.
And to a decrease Q on Q.
And third a 30% of a thought.
And our existing customers start to switch to Moscow.
The green.
So just a once we understand from a stock.
The stock trading volume perspective.
1 can we achieve 100% self clearing and the.
And what is the P&L implications.
And second question is about the.
Jean product.
So do we plan.
And then to a launch crypto currency trading and the future. Thank you.
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And our music on EMEA and kind of just share your free Tom Jager ticking back up to about down into the issues impeding Heidrick way always here, Jay goods, and how does the alky and Joel <unk> and Samsung.
Okay.
And let me translate so.
By end of last quarter, our U S based on Investor.
Use the March call of 2 clear U S cash equities.
As of March 31 about 30% of Tigers users are using March for clearing.
In the first quarter and the second quarter. We just started using March call Folio, a cost from China region. We expect by the end of this year more than 70% of our users will be clearing through Moscow.
In terms of trading volume, we think by early next year, we will have all the trading volume for cash equities clear by a Moscow.
And we've already seen clearing cost came down due to self clearing and on a quarter over quarter basis.
We expect clearing cost a further come down once we have more clients trading through Moscow.
And just roughly estimate of if we use the 2020.
Now the clearing expenses as a proxy I think a break here everything by ourselves.
Clearing expense cash save for a 30 million USD.
Thanks.
Going through the Covid, our EMEA the channel <unk>.
And I.
So the hobby Peugeot assembly of the beef is in cash of who will pay a proven true youll see a 1 additional selling and happened to them page of the April.
And the level of this from the Asia could it on Ford can make up.
Well me a quasi should onshore we hold a kiko critical IP than someone hits on manta without the app, but we haven't seen the Cherokee and gone downhill channel now.
All of them. If you don't want to tell you the Tim T shirt.
Also of our great good slide to otp shipments throughout the day, you should all be telling the same guangyao tool and IP.
Sure, maybe where there's some months of experiences of high job now both on the shelf PSA the price up just enrollment and therefore somewhat how many of the April.
And Meanwhile, homeboy, they can move over to the Holdco.
The co founder and tell you the true.
<unk> seen that you can work with a U K pop.
So a lot is crypto currency for example, bitcoin has becoming more exit of acceptable by mainstream investors since last year and the is emerging as a asset class.
Tigers machines to make any interest in more efficient and enjoyable for investors. So clip flow is definitely a product in our pipeline.
Given up quickly as the new asset class and a mainly regulations are still working progress and Tycho the way we will take a very prudent approach first of all we will only offer a crypto trading to offshore clients. We are not going to offer such services to Chinese nationals.
In addition, the.
Tiger subsidiary offering creates the trading needs to apply a local license and the P complying with local regulation.
For example in the U S brokers needs money service license to offer a critical trading in Singapore, The PSA license.
We are in the process to apply those licenses.
Thanks.
Yeah.
Thank you.
Our next question comes from the line of Julia Chung.
T D.
From Citigroup. Please go ahead.
So.
Thank you and I'm glad you want you can gain a lot of if you wanted to do quite well so wahid on the Giulia and once the Daniel <unk> Wilmington analysis on J D.
He didn't handle the way he runs a day.
For the year, you'll go up.
Uh Huh Vice Chancellor and my question. Thank you very much part given the opportunity to ask a question. This is Julia from Citi. I have 1 question, we have seen the market experienced some level of a pullback lately can management. Please keep us guidance in terms of the impact on the business. Thank you.
Yeah.
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And we think holds and Jacques kind of film and theme.
Total EMEA kind of genco.
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Most of the top the task of auto now put on it on either on the cash onshore eat them.
The April delinquency.
So the bulk of the Samsung playbook should be up way too at the IPO to a.
Jacob Columbia, we are gearing up.
Not on the line.
On the here comes out taking the IPO shop via some kind of way you're titrate share can you will you also and shop.
And localize functions that showed up.
How should a whole collection, San Juan and tie up out of being done tie a lot of food and you're on the catcher now EMEA and you went to the T a way not.
<unk> a kilometer zone.
A number of a tale of Michelle on the Palm nicely Armstrong.
Strong now women with Iot and that it took a lot of endo the show cause it.
Okay.
We do see some moderating market sentiment and the activities in the second quarter.
But are a key priority use of our acquisition.
Has been going very well due to our value added service and more geographic expansion.
We see that a inflow of coming out of our platform even on the markets more choppy of Lady and.
From a brokerage perspective relative of volatility is actually a good for our business sentiment.
Selling and restaurant and I wonder whether market pulled back where are you fed Tigers underwriting business.
In the short term market pullback has delayed quite a few of our offerings semi impact of the Tiger and the other investment bank.
But on the other half the market is not a very good week actually a better differentiation Tigers the service and the capabilities versus traditional banks.
And we actually have acquired more mandates mainly as the the bank. Our pipeline is very strong and we look forward to more revenue from our underwriting business later this year. Thanks.
Thank you.
Once again for those who wish to ask a question. Please press star 1 on the telephone and.
We need to be a dance.
Thank you, ladies and gentlemen that concludes our COO.
Question and answer session and I would like to hand, the conference back to mistake and Susi. Please go ahead.
I would like to thank everyone for joining our call today I am now close on the call on behalf of the management team here at Tiger. We do appreciate your participation on today's call. If you of any further questions. Please reach out to our Investor Relations team. This concludes the call and thank you very much of your time.