Q3 2023 UP Fintech Holding Ltd Earnings Call
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Speaker 1: Ladies and gentlemen, thank you for standing by and welcome to the App FinTech Holdings Limited Third Quarter 2023 Earnings Conference Call
Ladies and gentlemen, thank you for standing by and welcome to the often take holdings limited third quarter 2023 earnings Conference call.
Speaker 1: At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session.
At this time, all participants are in a listen only mode that'll.
That will be a presentation, followed by question and answer session.
Speaker 1: I must advise you that this conference is being recorded today, November 27, 2023.
I must advise you that this conference is being recorded today November.
27 2023.
Speaker 1: I would now like to hand the conference over to your first speaker today, Mr Aaron Lee, the Head of IR. Thank you. Please go ahead.
I would now like to hand, the conference over to your first speaker today, Mr. R&D the head of IR. Thank you. Please go ahead.
Speaker 2: Hello everyone and thank you for joining us for the call today of Pintech Coding Limited's third quarter 2023 earnings release was distributed earlier today and is available on our IR website at ir.itigerup.com as well as globe news.
Thank you operator.
Hello, everyone and thank you for joining us for the call today up Fintech holding limited's third quarter 2023 earnings Citied, what keeps the beauty earlier today.
One of our IR website at IR.
Hi, Tiger up dot com as well as growth in used truck centers.
Speaker 2: On the call today from Upwind Tech are Mr. Wu Tianhua, Chairman and Chief Executive Officer, Mr. Zhang Zeng, Chief Financial Officer, Mr. Huang Lei, CEO of US Tegra Securities, and Mr. Kenny Zhao, our Financial Controller.
On the call today from up Fintech, Campath, Chairman and Chief Executive Officer.
Johnson, Chief Financial Officer, Mr. Huang Lei.
You have to take a securities Mr. Kenny our financial controller.
Speaker 2: Mr. Wu will give an overview of our fitness operations and discuss hybrid highlights. Mr. Zeng will then discuss our financial results. They will both be available to answer questions during the Q&A session that follows their remarks.
Mr. <unk> will give an overview of our business operations and discuss corporate highlights.
So somebody will then discuss our financial results.
Used to be available to answer your questions. During the Q&A session that follows the remark.
Speaker 2: Now let me cover the safe harbor. The statements we're about to make content forward-looking statements. This is the meaning of the US Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement.
Now, let me cover our safe Harbor.
The statement about who make content forward looking statements.
Many of the U S. Private Securities Litigation Reform Act up 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 could cause actual results to materially differ from those in the forward looking statements. Please refer to our form 6K furnished today November 27, 2023, and our annual report on form 20-F filed on April 23.
Undertakes no obligation to update any forward looking statement, except as required under applicable law.
Speaker 2: It is my pleasure to now introduce our Chairman and Chief Executive Officer, Mr. Wu. Mr. Wu will make remarks in Chinese, which will be followed by English translation. Mr. Wu, please go ahead with your remarks.
It is my pleasure to now introduce our chairman and Chief Executive Officer, Mr. Wang <unk>.
<unk> will make remarks in Chinese which will be followed by English translation.
Please go ahead with your remarks.
Speaker 2: Hello, everyone. Thank you for joining the Tiger Brokers' 3rd Quarter 2023 Earnings Conference Call.
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Hello, everyone. Thank you for joining the Tiger brokers third quarter 2023 earnings conference call.
Speaker 3: In the third quarter, Deyue's internationalization business continued to develop, and the interest income and interest-related income rose by an average of 70 million US dollars, up by 6% and up by 27% compared to the previous year. In the second quarter, Deyue's company's depreciation increased, and its financial operations remained relatively strong in the third quarter, with a net profit of 13.2 million US dollars.
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Speaker 3: to four times that of the same period last year. The non-gamma net profit of the parent company is $16 million. Compared to the last quarter, the return has increased by 4.3% and by 141% compared to the same period last year.
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Speaker 3: We are very happy to see that the company's profit margin has risen by the third quarter of this year, and the number of non-GAM managers in the first three quarters of this year has reached 41 million. It has exceeded the total number of non-GAM managers in 2021 and 2022. This shows that Laowu has the ability to make rapid adjustments according to different market environments and regulatory requirements, and to achieve stable profit growth.
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Speaker 2: In the third quarter, we saw improvement in both commission and interest-related income. As a result, total revenue was US$70 million, an increase of 6.2% quarter-over-quarter and 26.6% year-over-year.
In the third quarter, we saw improvement in both cognition and interest related income.
Without total revenue was $17 million, an increase of six 2% quarter over quarter, and 26, 6% year over year.
Speaker 2: On the bottom line, as we started to see more operating leverage, net income attributed to upfintech was $13.2 million, a slight increase from the previous quarter and approximately four times that of the same quarter of last year.
On the bottom line as we started to see more operating leverage net income attributable to us are intact or $13 2 million U S dollars, a slight increase from the previous quarter and approximately four times that of the same quarter of last year.
Speaker 2: Non-Gap Net Income Attribute of Fintech was US$60 million, up 4.3% from second quarter of this year and an increase of 141% from the same quarter of last year.
non-GAAP net income attributed to the up Fintech was 60 million U S dollars.
Four 3% from second quarter of this year and an increase of 141% from the same quarter of last year.
Speaker 2: We are glad to see a consistent quarter-over-quarter growth in the company's bottom line for all three quarters this year. Total non-gap net income of the first three quarters of this year was US$41 million, already exceeding the combined full-year non-gap net income of 2021 and 2022.
We are glad to see a consistent quarter over quarter growth in the company's bottom line for all three quarters. This year total non-GAAP net income of the porphyry cultures off this year or 41 million U S dollars alrighty exceeding the combined full year non-GAAP net income after 2021 and 22.
Speaker 2: We are confident in our business model to be adaptable in different market environments and regulatory frameworks.
We are confident that our business model to be adaptable in different market environments and regulatory framework.
Speaker 3: The number of new users has reached 24,604 in three quarters.
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Speaker 3: More than 865,000 people have registered for the third quarter of the year. The number has increased by 15% compared to the same period last year.
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Speaker 3: In terms of client total assets, the current revenue of client assets remains steady at $15 billion. After neutralizing the impact of the market loss, the client total assets of this quarter will increase by 9.3% compared to the second quarter of this year.
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Speaker 3: Compared to the same period last year, it rose 45.4% to US$18.9 billion.
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Speaker 3: One of them is the entry fee of Singapore market users, which is still stable and strong. In the third quarter, the entry fee of Singapore new users was about US$10,000 on average. At the same time, we are very happy to see that the entry fee of Singapore users obtained in each quarter since the opening of the Singapore market has maintained a relatively strong entry fee level in the third quarter of this year.
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Speaker 3: This means that while we have high-quality new users in Singapore, we have also gained the trust of the mass users through the outstanding product experience and the high price advantage, so that we can continue to stabilize our lead in the local Internet market.
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Speaker 2: In the third quarter, we added 24,604 new funded accounts, bringing the total number of new funded accounts in the first three quarters of this year to over 84,000.
In the third quarter, we added 24640, new funded account.
Bringing the total number of new funny that caused them to four three quarters of this year to over 84000.
Speaker 2: Total number of funded accounts at the end of the third quarter reached 865,000, representing a growth of 15% compared to the same quarter of last year.
Total number of funds that are caused by the end of the third quarter reached 865000, representing a growth of 15% compared to the same quarter of last year.
Speaker 2: In terms of total current assets, the trend of asset inflow remains strong, with net inflow over 1.5 billion U.S. dollars in the third quarter. After neutralizing the impact from market loss, total current assets in this quarter increased by 9.3 percent quarter-over-quarter and 45.4 percent year-over-year, reaching 18.9 billion U.S. dollars.
In terms of total calling out that the trend of asset inflow remains strong with net inflow over 1.5 billion U S dollar from the third quarter.
After neutralizing the impact from Mark to market loss total plant off that in this quarter increased by nine 3% quarter over quarter, and 45, 4% year over year, reaching 18 9 billion U S dollar.
Speaker 2: Specifically, in the Singapore market, net inflow from local users remains stable and strong. In Singapore, the average net asset inflows of our newly acquired clients in the third quarter were approximately US$10,000 and we see similar trend in terms of net asset inflows from previous quarterly cohort groups.
So basically in the Singapore market.
Net inflow from local users remained stable and strong in Singapore. The average net asset inflows of our newly acquired clients in the third quarter were approximately 10000 U S dollars and if these things are trading in terms of net asset inflows from previous quarterly cohort groups.
Speaker 2: This demonstrates our ability to attract high-quality new users in Singapore and solidify our leading position in the local market.
That market with our ability to attract high quality high quality, new users in Singapore, and solidify our leading position in that local market.
Speaker 3: We continue to enhance product breakthroughs and iterations to enhance the user experience. This is the key to achieving long-term success.
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Speaker 3: In the third quarter, Laos has added the function of trading and sharing.
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Speaker 3: You can check the shareholder's order dynamics to gain investment inspiration and find trading opportunities. In addition, in the financial management business book, after the Tiger Fund has been listed in the U.S. dollar currency fund and the Hong Kong dollar currency fund products in the first half of this year, we have launched the U.S. national debt investment function in the Singapore market this month.
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Speaker 3: It is expected to launch in Hong Kong in December .
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Speaker 3: It provides a safer, more stable income for users in a high-interest environment and supports a higher level of asset management to limit the choice of funds.
Speaker 2: We continue to add new products on our platform to enhance user experience, which we believe is the key to our long-term success. In the third quarter, the Tiger community introduced the Trading Sparks feature. Users can follow best-performing traders on our platform and leverage their trading ideas for investment opportunities.
We continue to add new products, our platform to a hefty with Europe, which we believe is the key to our long term success.
In the third quarter, the Tegra community to introduce their trading Sparks feature users followed by performing a trader or a platform and leverage their trading ideas for new investment opportunities.
Speaker 2: Additionally, on the wealth management business, following launch of U.S. dollar and Hong Kong dollar money market funds on Tiger Bull earlier this year, we recently added U.S. treasury to our wealth management platform in Singapore. We anticipate launching of this new feature for Hong Kong users in December .
Italy on the wealth management business following the launch of U S dollar and Hong Kong dollar money market Fund Tiger about earlier. This year, we recently added U S Treasury to our wealth management platform in Singapore, we have.
Anticipated launching of this new feature for Hong Kong users in December.
Speaker 3: Our third quarter, we launched four Hong Kong-U.S. IPO projects, including EarlyWorks and Kip.
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Speaker 3: In terms of ESOP, there are 27 new ESOP customers in the third quarter of this year. The total number of ESOP customers has reached 505 and has increased by 29%.
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Speaker 2: Our 2B business continues to perform well. In investment banking, we underwrote four US and Hong Kong IPOs in the third quarter, including EarlyWorks and KIPP.
Our <unk> business continued to perform well in investment banking, we underwrote for U S and Hong Kong Ipos in the third quarter, including already work and Keith.
Speaker 2: In our E-Supp business, we added 27 new clients in the third quarter, bringing the total number of E-Supp clients served to 505 for the end of the third quarter of 2023, increased by 29% year-over-year.
We added 27, new clients in the third quarter, bringing the total number of Aesop client therapy to 505 for the end of the third quarter up 23 increased by 29% year over year.
Speaker 2: Now I would like to invite our CFO John to go over our financials.
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Speaker 3: Hello, everyone. Thanks, Tianhuai and Aaron. Let me go through our financial performance for the third quarter. All numbers are in US dollar.
However, Saskatchewan Aaron Let me go through our financial performance for the third quarter all numbers are in U S. Dollar.
Speaker 3: Total revenue was $70.1 million this quarter, increased 6.2% quarter over quarter, and 26.6% year over year.
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Total revenues were $70 1 million this quarter increased six 2% quarter over quarter, and 26, 6% year over year.
Speaker 3: Both commission income and interest-related income saw a sequential increase this quarter.
Both commission kind of interest relating kind of saw a sequential increase this quarter.
Speaker 4: Cash equity take rate was 6.1 bps this quarter.
Cash equity take rate was 6.1 bps this quarter.
Speaker 4: slightly decreased from last quarter. Within commission revenue, about 60% comes from cash equity.
The decrease from last quarter.
Within Commission revenue about 60% comes from cash equities.
Speaker 4: 30% from options, and the rest comes from filters and other products.
30% from auctions and the rest comes about future sand and other products.
Non cost.
Speaker 4: Interest expense was $12.1 million, increased 182% from the same quarter of last year, in line with the rate hike.
Interest expense was $12 1 million.
Increased a 182% from the same quarter of last year in line with the rate hike.
Speaker 4: execution and clearing expense were $2.4 million, decreased 26% from the same period of last year, primarily due to more self-clearing in U.S. and Hong Kong security.
Execution and clearing expense were $2 4 million.
Decreased 26% from the same period of last year, primarily due to more self clearing in U S and Hong Kong Securities.
Speaker 4: Employee compensation and benefits expense were $26 million, an increase of 8% year-over-year due to an increase in global headcount.
Employee compensation and benefits expense were 26 million.
An increase of 8% year over year due to an increase in global head counts.
Speaker 4: Depreciation expense decreased 10% to $2.2 million.
Depreciation expense decreased 10% to $2 2 million.
Speaker 4: as the depreciation of the headquarters office decoration expense has been completed.
As the depreciation of the headquarters office Declaration expense has been completed.
Speaker 4: Communication and market data expense were $7.6 million, an increase of 16% year-over-year due to the increase in user base.
Communication and market data and access were $7 6 million an.
An increase of 16% year over year due to the increase in user base.
Speaker 4: Marketing expense were $5.2 million this quarter, decreased 30% year-over-year, as we remain prudent with our marketing approach in the third quarter.
Marketing expense were $5 2 million this quarter decreased 30% year over year as we remain prudent with our marketing approach in the third quarter.
Speaker 4: General energy and electricity expense were $5.4 million, an increase of 55% year over year.
General and administrative expenses were $5 4 million.
An increase of 55% year over year.
Due to a decrease in professional service fees.
Speaker 4: Total operating expense was $48.8 million.
Total operating expense were $48 8 million.
Speaker 4: Slightly increased 3.1% from the same quarter of last year.
Slightly increased three 1% from the same quarter of last year.
Speaker 4: As a result, both gap and the non-gap bottom line increased quarter over quarter and year over year.
As a result, both GAAP and non-GAAP bottom line increased quarter over quarter and year over year.
Speaker 4: Gaff-related income was $13.2 million, slightly increased 1% from the previous quarter, and about a 4 times that of the same quarter of last year.
GAAP net income was $13 2 million.
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Speaker 4: Non-capital income was $16 million, up 4% from the previous quarter, and increased 141% versus the same quarter of last year.
non-GAAP net income was $16 million.
Up 4% from the previous quarter, and an increase of 141% versus the same quarter of last year.
Speaker 1: Now we have concluded our presentation. Operator, please open the line for Q&A. Thanks. Thank you. We will now begin the question and answer session. To ask a question on the phone, please press star 11 and wait for your name to be announced. If you'd like to cancel your request, please press star 11 again.
While we have concluded our presentation operator, please open the line for Q&A. Thanks. Thank.
Thank you we will now begin the question and answer session to ask a question on the phone. Please press star one one and wait for a name to be announced if you would like to cancel request. Please press star one again.
One moment for the first question.
First question comes from the line of <unk> <unk> from.
<unk> from CIBC. Please go ahead.
Speaker 5: Hello, Management Team. Thank you for giving me the opportunity to ask this question. I am Puhan, an analyst at ZTE. I have two questions to ask. The first question is to ask the Management Team to help us disassemble the area distribution of the third quarter new users. The second question is that we have seen that the performance of the profit side has improved significantly this year. If we look at next year, from a strategic perspective, how can we balance the stability and growth of profit? Do we have a plan to enter the new area? Thanks, Management, for taking my question. I have two questions. Firstly, could you please give us the original breakdown of the new founded accounts in Q3? And secondly, we have seen the obvious improvements in the bottom line this year. Strategically, how do you balance the growth and the probability in 2024? Do we have any plans for new markets? Thank you.
Thank you Joe would you go to your next question comes from Anthony Jabbour head and what you're paying attention Joe Kido with.
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Management for taking my question I have two questions. Firstly could you. Please give us the original breakdown of new founded out of a pouch.
In Q3 and fiscal year, we have.
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Speaker 3: Thank you. The first question is about the breakdown in each region. Overall, in the third quarter, about 55% of the new arrivals came from Singapore. The contributions from Hong Kong, Australia and the U.S. accounted for about 15% of all arrivals.
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Speaker 2: Okay, so for the first question, among the new funded accounts in the third quarter, approximately 55% came from Singapore, while contributions from Hong Kong, Australia and New Zealand region and the United States accounted for around 15% each.
So for our first question among the new funded account in the first quarter approximately 55% came from Singapore contribution from Hong Kong, Australia, New Zealand region in the United States accounted for around 15% each.
Speaker 3: The second question is about how to balance profit and growth. In the past three quarters of this year, our profit has risen by more than 41 million dollars. The number of new users has reached the goal of 100,000 users a year.
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Speaker 3: Our assets in the third quarter increased by 9.3% compared to the previous year, and increased by 45.4% compared to the previous year. We have reached $18.9 billion. So, from the data, while the company's business scale has increased, it has also greatly improved our profitability.
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Speaker 3: From a long-term perspective, I believe that the growth of user size, user assets, and profit margins will be consistent.
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Speaker 3: It is difficult to maintain profits and continue to grow, especially with variable costs, such as low-level cases where credit costs are already ahead of the industry. Therefore, the key point is to acquire more high-quality users and more transferred assets to increase income and open up the space for us to profit. This is also a question that we have been talking about.
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Speaker 3: How do we get higher income returns through controllable cost increases, such as cargo costs? This is also the reason why we set ROI and return cycle as the main goals of each country.
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Speaker 3: Looking ahead, within the next year, we will continue to focus on the current market pull and transaction recovery to increase the value and drive the continued increase in profit.
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Speaker 3: to provide sufficient ammunition and space for each company in the future in more market industries.
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Speaker 3: As for the new market next year, we will evaluate the company's resources in all aspects and then grasp the rhythm and direction of the standardization expansion. Thank you.
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Speaker 2: We've seen quarterly growth on the bottom line throughout the first three quarters of this year, accumulating over $41 billion.
We've seen quarterly growth.
But bottom line drop.
Throughout the first three quarters of this year acute.
Accumulating over $41 million as of now the number of new funded clients has already exceeded our annual guidance all by mid 2000, and total and off that by the end of the third quarter have increased by Nikon for recall.
Speaker 2: As of now, the number of new funded clients has already exceeded our annual guidance of 500,000.
Speaker 2: And total client assets by the end of the third quarter have increased by 9.3 percent quarter over quarter and 45.4 percent year over year, reaching $18.9 billion.
Percent quarter over quarter, and 45, 4% year over year, reaching 18 parking liability in U S. Dollar. So we have improved our profitability, while growing user base and asset under custody.
Speaker 2: So we have improved our profitability, while growing user base and asset under custody. I believe the growth of user base and current assets goes hand in hand with the profit growth in the long run.
I believe the growth of user base and kind of ask that goes hand in hand with the profit growth in the long run.
Speaker 2: There is a cap on how much cost saving I have profitability, especially when some variable costs, for example, our clearing expenses, are already one of the lowest in the industry.
There is a cap on how much cost savings you have profitability.
You win some variable cost for example, our clearing expenses are already one of the lowest in the industry.
Speaker 2: So the key is still to acquire more high-quality users, get more assets on our platform to increase total revenue and net income. It's a great question that you asked, and it's also a question we keep asking ourselves. How to achieve better operating leverage if we incur more costs like CC? That's why we use ROI and payback period as important metrics to evaluate our different subsidiaries.
Key is to acquire more high quality user got more access to our platform to increase total revenue and net income.
That's a great question that you asked and it's also a question, we keep asking ourselves how to achieve better operating leverage if we incur more costs like safety. That's why we're youth ROI and payback period are important metrics to evaluate our different subsidiaries.
Speaker 2: As of now, our focus will continue to be on driving sustained profit growth in the existing market with manageable investment.
As of now our focus will continue to be on driving stuff turned to profit growth in the existing market with manageable investment.
Speaker 2: so we can build buffer for companies future expansion. We will carefully evaluate all aspects of companies resources before determining the pace and direction of new markets we want to enter. Thank you.
So we can build buffer for company of the future expansion, we will carefully evaluate all aspects of the company's resources before determining the pace and direction of new markets, we want to enter thank you.
The questions one moment for the next question Nick.
Speaker 1: Next up we have the lines from Cindy Wang from China Renaissance. Please ask your question.
Next up we have the lines from Cindy Wang from China Renaissance. Please ask your question.
Speaker 5: Okay, thank you for giving me the opportunity to ask this question. I have two questions to ask. The first question is about the current market. It is expected that the holiday cycle of the United States is nearing its end. Maybe the holiday cycle will begin next mid-year. In the face of this possible change, how will the company's strategy and operations be adjusted to maintain the current or even higher profit margin?
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Consolidated profit margin.
Speaker 5: My second question is that we see that the blended take rate in the 3rd quarter has dropped compared to the 2nd quarter. Can you tell us the reason behind this? I will quickly translate my question. So thanks management for taking my question. So I have two questions. First question is, market expects the fat rate hike cycle is coming to the end.
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Thank you management for taking my question, so I have two questions.
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That rate hike cycle is coming through the App.
Speaker 5: and may start to cut interest rate in the mid-2024. So based on this scenario, how would you adjust strategy and operations to maintain the current or even higher profit margin? The second question is.
And they start to cut interest rate.
Thank you Jackie.
So based on the scenario, how would you address challenges and operations to maintain the current or even higher profit margin.
Second question.
Speaker 5: the blended cake rate in third quarter was down sequentially, so what's the reasoning behind it? Thank you.
So blended takeaway in the quarter was down sequentially. So what's the reason behind that thank you.
Speaker 3: The third question is about the photo of Xi Yingxiang in Jiangxi Province.
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Speaker 3: Our advice to the players who refuse to compromise is that young players are facing an opposing factor.
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Speaker 3: Based on the data from the past few years, we can see that the interest income and interest-related income sometimes fluctuate in the opposite direction. In a low-interest environment, the transaction income is stronger, and as the interest rate rises, the transaction return will slow down, but the interest-related income will increase.
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Speaker 3: In addition, most of our revenue comes from face-to-face business. In these businesses, we mainly make XIX. So our revenue is relatively limited due to the impact of decline.
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Speaker 3: Of course, we will also adjust product and operation strategies based on different market environments. For example, in the past year, in an environment of high interest rates, we have launched financial management products such as U.S. dollars, Hong Kong dollars, monetary funds, and investment in U.S. bonds.
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Speaker 3: In the future, as the market returns from the downturn improve, more funds will be transferred from the investment in the stock market to the investment in the dog breed. We will also conduct targeted investment and promotion based on the market situation.
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Speaker 2: So, in general, we think that the future downtrend will be a positive signal. The increase in the market share will lead to an improvement in the amount of savings, and it is more likely that there will be a growth in beta sales at the income end. Thank you. Okay, I'll translate the answer to the first question. We think a good thing about the broker-dealer business model is trading velocity in general, a natural hedge with interest rate. When risks go up, velocity and trading commission tend to go down, and vice versa.
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Okay. Our traffic Arthur first question, we think a good thing about the broker dealer business model is trading velocity in general nature hedged with interest rate when rates go up velocity and trading commission tend to go down and vice versa.
Speaker 2: In our business, a big chunk of interest income comes from margin financing and securities lending where we earn a relatively stable interest spread. Therefore, the impact of interest rate cuts on our interest income will be fairly limited.
Our business a big chunk of interest income come from margin financing and securities lending.
Earn a relatively stable interest spread therefore, the impact of interest rate cuts our interest income will be fairly limited.
Speaker 2: And of course, we will also adjust our product and operational strategy based on different market backdrop. For example, in the past year with the Fed rate hikes, we introduced more Yale products such as U.S. dollar and Hong Kong dollar money market funds and features for investments in U.S. Treasury.
And of course, we'll be also adjust our product and operational strategy based on different market backdrop for example in the past year with the fabric.
Hikes introduced more Yale products, such as U S dollar and Hong Kong dollar money market funds and feature for investments in U S. Treasury.
Speaker 2: We also generated more interest income through treasury management and margin financing securities lending.
We also generated more interest income through Treasury management, and marketing financing securities lending business, but.
Speaker 2: In the future, as market activity improves with interest rate cuts, more client assets will likely shift from fixed income investment to equity investment.
But in the future as market activity improves with interest rate cut more client asset will likely to shift from fixed income investment to equity investments.
Speaker 2: We will roll out more tailored investor education and promotion based on market conditions.
Roll out more tailored investor education, and promotion based on market condition.
Speaker 2: So overall, we still consider future interest rates cuts as a positive signal, given increased market activity is more likely to generate beta effect growth on our top line.
So overall with T O catheter future interest costs as a positive signal given increased market activity is more likely to generate greater effect outgrowth our top line.
Speaker 4: Okay, Cindy, let me answer your second question about the Blended TakeAway.
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Speaker 4: Because in our trading volume, the amount of high-priced stocks like Tesla and Invida is relatively high. So...
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Speaker 4: In the third quarter, when users are trading these stocks, the return on their transactions is higher than the number of transactions. And we collect each stock based on each transaction. So the higher the number of transactions, which is the share, the lower the take rate. So I'll just...
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Speaker 4: So the slight decrease in blended take rate was due to high price names like Tesla and NVIDIA accounted for a big portion of our trading volume in the third quarter. So the increase in share price of those names outpaced the increase in number of shares traded. Since we charged commission by number of shares, the blended take rate came down slightly versus last quarter. Even our pricing remained the same. Thanks.
So the slight decrease in blended take rate was due to a high price names like Tesla and they're in beta accounted for a big portion of our trading volume in the third quarter. So.
So the increase in share price of those names outpaced the increase in number of shares trade it.
Since recharge commissioned by lump of shares the blended take rate came down slightly versus last quarter, even our pricing remains the same.
Okay.
Okay.
Thank you for the questions one moment for the next questions.
Speaker 1: The next question comes from Alan Kwong from Citibank. Please go ahead.
The next question comes from the line of Alan Kuang from Citibank. Please go ahead.
Speaker 6: Hello, everyone. Thank you for the opportunity. I have two questions for you. The first one is about Singapore.
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Speaker 6: We noticed that there is a business that has kept a good income and growth in Singapore in the recent few quarters, and the local market share is also gradually increasing.
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Speaker 6: Singapore, as the core overseas market of Tiger Securities, I would like to ask how the management team sees the changes in the competition pattern in the local market. And in the future, do you have any new strategic plans for the expansion of the Singapore market?
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Speaker 6: The second question is about encrypted currency. I saw a news report saying that you intentionally apply for encrypted currency in Hong Kong. Do we have any new developments in this area? Thank you. I will quickly go through my questions.
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Speaker 6: Thanks, management, for taking my question. This is Alan from City Research. I have two questions today. The first one is about the Singapore market.
Thanks management for taking my question is Alan from Citi Research two questions today, and it's much more about this a couple of markets.
Speaker 6: Recently, we have seen one of our Tiger competitors building up growth momentum in Singapore with decent paying customer growth and market share gain during the third quarter. As Singapore is Tiger's core market, I'm wondering if management have any comments on the latest local market share trend and on a forward-looking basis, could management give us some color or updates on the latest growth strategy for the Singapore market?
Recently, we have seen one of our Tiger competitors building up our growth momentum and snapple with decent paying customer growth and market share gains during the first quarter.
Singapore is tied to its core markets lung wondering if management have any comments on the latest local market share trends and on a forward looking basis.
Management give us some color or updates on the maintenance growth strategy for the Singapore market.
Speaker 6: And the second question is about a crypto trading license. I'm wondering if management have any updates on the license application. Thanks.
And the second question is about crypto trading license I'm wondering if management have any updates on the license application.
Okay.
Speaker 3: The first question is about the Singapore market. The Singapore market has always been an important part of our profits. In the first three quarters of the year, China's per capita GDP was below the US dollar.
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Speaker 3: In the first three quarters of this year, Singapore's net profit continued to grow by two-fifths. In addition, the success of the Singapore market has also increased the popularity of the entire Southeast Asian market, which will provide us with a good foundation and brand advantage when we enter other Southeast Asian countries in the future.
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Speaker 3: In the third quarter, the total net income of the group still maintained a strong trend, and the net income was about $1.5 billion. Singapore also made an important contribution. In the first quarter, the net income of users was about $10,000. More importantly, in the past quarter, the net income of users was about the same as the net income in the third quarter.
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Speaker 3: Singapore has a 99% shareholding rate of asset users, and the stock trading volume has risen by about 10% in the third quarter, and the new stock trading volume is the top in the entire Singapore tech industry.
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Speaker 3: We are satisfied with the development of Tiger in Singapore. The reason why we are able to achieve success locally is inseparable from the persistence of our active users ZhiNiang and PingRY. In the future, we will continue this strategy to attract local high-quality users while maintaining profitability.
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Speaker 2: So for the first question regarding our business in Singapore, the Singapore market has been a key profit driver for Tiger. Thanks to our low average CEC, which is staying below US$200 in the first three quarters, we've seen a double-digit compound growth on the bottom line throughout the first three quarters of this year. Also, the success in Singapore has boosted Tiger's reputation in the entire Southeast Asian market.
Okay. So for your first question regarding our business in Singapore, The Singapore market has been a key profit driver for Tiger. Thanks to our low average D. C. We're staying below 200 U S dollars in the first three quarters, we've seen a double digit compound growth on the bottom line throughout the first three quarters of this year also the success.
In Singapore has boosted tiger's reputation in the entire southeast Asian market brings a solid foundation and Brent advantage for future entry into dose southeast Asian market and.
Speaker 2: brings a solid foundation and brand advantage for future entry into, you know, those Southeast Asian markets.
Speaker 2: In the third quarter, the overall net asset inflow continued its strong momentum, with around 1.5 billion USD. Singapore played a big part in it, with average net asset inflows of our newly acquired clients in the third quarter reaching around 10,000 USD, and more importantly, our existing users from Singapore market showed a similar trend in terms of net asset inflows.
In the third quarter. The overall net inflow continued its strong momentum with around $1 billion, Singapore played a big part in it with average net asset inflows of our newly acquired clients in the third quarter, reaching around 10000 U S dollar and more importantly, our existing users from Singapore market showed a similar trend in terms of that.
Speaker 2: The retention rate of our local users with assets remained at 99%. And the cash equity trading volume, so a quarter over quarter, increased about 10%. And we rank at number one among all online brokers in Singapore, in terms of Singapore shares trading volume.
Inflows.
The retention rate of our local users with office remain at 99% and the cash equity trading volume so quarter over quarter increased about 10% and we rank at number one among all online broker in Singapore in terms of Singapore shares trading volume.
Speaker 2: So whether we are looking at our strategic position, profitability, net inflows of client assets or retention rates, we are comfortable with where we stand in Singapore. Our success locally is closely tied to our focus on user quality and our commitment to balancing ROI. So looking ahead, we will continue this strategy, ensuring profitability while attracting high quality users. Thank you.
So whether we're looking at our strategic position profitability net inflows of client assets. Our retention rates, we are comfortable with where we stand in Singapore. Our success locally is closely tied to our focus on user quality and our commitment to balancing ROI.
So looking ahead, we will continue this strategy, ensuring profitability well attracting high quality users.
Okay.
Speaker 4: Ok, Alan, let me answer your question about crypto.
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Speaker 4: Cryptocurrencies are becoming more and more popular around the world. We also think that crypto has become a very important asset. And recently, we can see that Singapore, Hong Kong and the U.S. have been improving their acceptance and regulation of cryptocurrency transactions. The mainstream investment institutions, such as BlackRock, are also entering this industry.
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Speaker 4: As for Tiger, based on our technological genes, the team's know-how, and the good communication with regulators, we will definitely enter the business sector in the future to enrich our products and provide more investment options to our users. As for the status of applying for a license, we are applying for a license in places with regulatory frameworks around the world.
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Speaker 4: For example, in the U.S., we are taking photos of every state's MSP. And in Singapore, we are also taking photos of every state's MSP.
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Speaker 4: So, in our view, crypto is becoming a very important asset class.
So in a real critical is becoming a very important asset class.
Speaker 4: It's a natural extension of business as a broker-dealer to add a new asset class.
It's a natural extension of our business as a broker dealer to add a new asset class at.
Speaker 4: And the Web3 technology is also integrated with Tiger's FinTech background and the know-how.
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Speaker 4: So we are applying for multiple licenses across regions. For example, in the US, we are applying for MSP license in each state. In Singapore, we are applying for PSA license. In Hong Kong, we already submitted our VATP application following SFC's consultation back in June . So hopefully by next year, we will get approval and offer crypto trading to investors. Thank you.
So we are planning for a multiple licenses across regions. For example in the U S. We are applying for MSP licensing each state in Singapore, we are applying for PSA license in Hong Kong, We're already submitted <unk> applications. Following sepsis consultation back in June so hopefully by next year with approval.
For our crypto trading to investors. Thank you.
Okay.
The questions.
Speaker 1: Now I would like to hand the call back to management for closing.
Now I would like to end the call.
Call back to management for closing remarks. Please.
Speaker 2: I would like to thank everyone for joining our call today. I'm now closing the call on behalf of the management team here at Tiger. We do appreciate your participation to this 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. Thank you.
Yeah.
I would like to everyone for joining our call today and now closing the call on behalf of the management team here at a Tiger. We do appreciate your participation in today's call. If you have any further questions. Please reach out to our Investor Relations team. This concludes the call and thank you very much by the time.
Thank you.
Okay.
Speaker 1: Ladies and gentlemen, that concludes the conference call for today. You may now disconnect.
Ladies and gentlemen that concludes the conference call for today you may now disconnect your lines.
Okay.
Speaker 7: And.
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