Q1 2024 UP Fintech Holding Limited Earnings Call
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Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to the up Fintech holding Limited's first quarter 'twenty 'twenty four earnings conference call. At this time all participants are in a listen only mode that will be a presentation followed by a question and answer session. I must advise you that this conference is.
Speaker Change: The court being recorded today June 'twenty 'twenty four.
Speaker Change: I'd now like to hand, the conference over to your first speaker today, Mr. Lee the head of Investor Relations. Thank you. Please go ahead.
Speaker Change: Yeah.
Aron Lee: Hello everyone, and thank you for joining us for the call today. UP Fintech Holding Ltd's fourth quarter 2024 earnings release was distributed earlier today and is available on our IR website at ir.itigerup.com, as well as the Globe Newsware service. On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and Chief Executive Officer, Mr. Zhuang Zeng, Chief Financial Officer, Mr. Huang Lei, CEO of US TIGER Securities, and Mr. Kenny Zhao, our Financial Controller.
Speaker Change: Thank you operator.
Aron Lee: Mr. Wu will give an overview of our business operations and discuss corporate highlights. Mr. Zeng will then discuss our financial results. They will both be available to answer your questions during the Q&A session. Now, let me cover the safe harbor.
Speaker Change: Hello, everyone and thank you for joining us for the call today up Fintech holding limited's fourth quarter 2024 earnings studies with good stability earlier today and is available on our IR website at IR I grew up they'll call I felt like the globe Newswire services.
Speaker Change: On the call today from up Fintech and Mr.
Speaker Change: Chairman and Chief Executive Officer.
Speaker Change: Johnson, Chief Financial Officer, Mr. Huang Lei CEO of U S Tiger Securities, Mr. Kenny Chile, our financial controller.
Johnson: It's the old will give an overview of our business operations and discuss corporate highlights.
Johnson: Mr Son will then discuss our financial results.
Speaker Change: They will both be available to answer your questions during the Q&A session that follows.
Speaker Change: Their remarks.
Speaker Change: Now, let me cover the Safe Harbor.
Mr Son: Such statements may contain forward looking statements within the meaning of the U S. Private Security Litigation Reform Act of 95, a number of factors could cause actual results to differ about you already from those contained in any forward looking statement.
For more information about factors that could cause actual results to materially differ from the forward looking statements. Please refer to our form 6K furnished today through 2024 and our annual report on form 20-F filed on April 24.
We undertake no obligation to update any forward looking statement, except as required under applicable law.
Mr Son: It is my pleasure to now introduce our chairman and Chief Executive Officer, Mr. Hu.
Speaker Change: It's the audio makes remarks in Chinese, which there'll be followed by English translation.
Speaker Change: Please go ahead with your remarks.
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Speaker Change: I think always in dialogue with the army Auxilium digital about how quick Hello, everyone. Thank you for joining the Tiger brokers fourth quarter 2024 earnings conference call.
Aron Lee: While these statements were about to make content-forward-looking statements, within the meaning of the U.S. Private Security Legislation 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 6K filed today, June 5th, 2024, and our annual report on Form 20F filed on April 22nd, 2024. We undertake no obligation to update any forward-looking statement, except as required under applicable law.
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Aron Lee: It is my pleasure to now introduce our Chairman and Chief Executive Officer, Mr. Wu. Mr. Wu will make remarks in Chinese, which will be followed by an English translation. Mr. Wu, please go ahead with your remarks.
Speaker Change: In the first quarter, we saw a moderate rebound in market backdrop. Our total revenue reached $78 9 million U S dollar the highest quarter in the path for a year.
Tianhua Wu: Hello, everyone. Thank you for attending the first quarter financial press conference of Laowu International in 2024.
Tianhua Wu: Hello everyone, thank you for joining the Tiger Brokers' 4th Quarter 2024 Earnings Conference Call.
Tianhua Wu: In the first quarter, we saw a certain rebound in the overall return of the market, and the company's gross profit reached $78.9 million. In the highest quarter in the past three years, the return has risen by 12.8%, which is 19% higher than last year. On Sponsored ADR Class A, Huan Bi has a loss and a gain, and the share price has risen by 55%. Longganm Economy, which is owned by a parent company, is estimated to be US$14.7 million, which is 13.9 times higher than last quarter, and the share price has risen by 42%. Langkamp's Dining Room 20%, [inaudible]
Speaker Change: Five 8% sequentially and 19% year over year.
Tianhua Wu: In the first quarter, we saw a moderate rebound in the market backdrop. Our total revenue reached 78.9 million USD, the highest quarter in the past three years, increased 12.8% sequentially and 19% EOB. On the bottom line, benefiting from the optimization of the company's revenue structure and increase in operating efficiency, the profitable momentum was back on track. Definite income turned positive to $12.3 million, and it was up 55% year-over-year. Nongab Net Income was $14.7 million USD, 13.9 times that of the previous quarter, and up 42% year-over-year. The Nongab network margin rebounded to nearly 20%. Going forward, we will further leverage fixed costs through the growth of the user base and ARPU improvement brought by product diversification, thereby achieving healthier and more sustainable profitability.
Speaker Change: Our bottom line benefiting from the optimization of the company's revenue structure and increasing operating efficiency the profitable and one of them was back on track.
Speaker Change: GAAP net income turned positive to transport perennial in U S dollar and up 55% year over year.
Speaker Change: non-GAAP net income was $14 7 million U S. Dollar 13, nighttime cut off the previous quarter and up 42% year over year.
Speaker Change: non-GAAP net profit margin rebounded to nearly 20%.
Speaker Change: Going forward, we will further elaborate fixed costs through the growth of user base and ARPA improvement brought by product diversification thereabout, treating a healthier and more sustainable profitability.
Tianhua Wu: Up to 8,800 users have been added in the first quarter, and the total number of users has reached 933,400 by the end of the first quarter. Compared to the same period last year, a 15% increase. The number of new users exceeded 35,000 in the first two months of the second quarter. We are confident in our goal of achieving 150,000 new users by 2024. In terms of client total assets, after reaching a record high in the fourth quarter of last year, will client total assets remain the same in the first quarter of this year?
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Tianhua Wu: Sponsored ADR Class A, After neutralizing the impact of the loss of customer asset supply and value, the total value of this quarter reached $32.9 billion, a 7% increase in return and a 100% increase in share price.
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Tianhua Wu: In the first quarter, we added 28,800 new funded accounts, and the total number of funded accounts reached 933,400 at the end of the first quarter, an increase of 15% year-over-year. In the first two months of the second quarter, we've already acquired more than 35,000 Newfoundland clients, and we are confident in achieving our two-year guidance of acquiring at least 150,000 Newfoundland accounts in 2024. In terms of total client assets, building from a historic high in net asset inflows in the fourth quarter of last year, the strong momentum continued in the fourth quarter of this year, with net asset inflows of 5.3 billion USD, mainly contributed by Singapore users and institutional users. After neutralizing the impact from market-to-market losses, the total client assets reached 32.9 billion USD for the end of the first quarter, an increase of 7% sequentially and 104% year-over-year.
Speaker Change: In the fourth quarter, we added 28800, new fab.
Speaker Change: And the total number of funded accounts right now is 33400 <unk>.
The fourth quarter.
Speaker Change: The increase of 15% year over year.
Speaker Change: And the first two months of the second quarter with already acquired more than 35000, new clients and about covenant in achieving our full year guidance of at least 150000.
Speaker Change: It occurred in 2024.
Speaker Change: In terms of total client asset building.
Speaker Change: Building from a historic high in net asset inflows in the fourth quarter of last year with strong momentum continue in the fourth quarter of this year.
Speaker Change: Net inflows of five rebuilt in U S dollars, mainly contributed by Singapore users and institutional users.
Speaker Change: After neutralizing the impact of Mark to market loss of Cologuard in a fast reached $32 9 billion U S. Dollar by the end of the fourth quarter increased 7% sequentially, and our bandwidth and 4% year over year.
Tianhua Wu: The company continues to attract high-quality users to ensure that the long-term privacy strategy has not changed. As the headquarters of the Singapore market, we continue to attract local high-quality users to join the Tiger platform because of the local brand advantage. Sponsored ADR Class A, At the same time, we are very happy to see that the number of new users from the Hong Kong market in the first quarter reached more than 18,000 users.
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Tianhua Wu: Since entering the Hong Kong retail market for over a year, the company has gained more and more customers with high-quality products and a better understanding of the local market. At the same time, it also shows that there is still a huge potential for development in the market.
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Tianhua Wu: Our strategy is to keep acquiring high-quality clients to ensure long-term profitability remains unchanged. In Singapore, where our headquarters is located, our bright advantage continues to attract high-quality organic traffic to onboard our platforms. With an average net asset inflow of over $14,000 from newly acquired retail clients in the first quarter. Also, we are glad to see the average net asset inflow of newly acquired clients from the Hong Kong market in the first quarter exceeded $18,000. Demonstrating we have gained more recognition from the local high-quality users, and we are committed to growing our Hong Kong presence.
Our strategy to keep acquiring high quality clients will ensure long term profitability remains unchanged in Singapore, where our headquarters are located are Brett advantage continue to attract high quality organic traffic.
Speaker Change: Vessel.
Speaker Change: With average net asset inflows of over 14000 U S dollars from newly acquired retail clients in the first quarter.
Speaker Change: Also we are glad to see the average net asset inflow of newly acquired clients from the Hong Kong market in the fourth quarter exceeded 18000 U S dollar.
Speaker Change: Demonstrating that we have gained more recognition from the local high quality users and we are committed to grow our Hong Kong PRASM.
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Tianhua Wu: [inaudible] As Hong Kong stocks and Singapore stocks' self-calculation efficiency has improved, the overall calculation fee accounted for 8% of the lowest-ever income ratio in history, which is a low level ahead of the industry. This means that we are ensuring that, based on user quality and product experience, we will continue to reduce the variable costs of the company through the advantages of the brand and industry over the years to improve business efficiency.
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Tianhua Wu: In addition, the average customer acquisition cost was around US$150 in the first quarter, and with the further improvement to our Hong Kong and Singapore share clearing efficiency, the overall clearing fee as a percentage of commission income has dropped to a historical low of only 8%. Both of which are industry-leading low levels, indicating that we keep reducing our variable costs and improving profitable efficiency while ensuring user quality and product experience through our brand advantages and R&D strengths over the years.
In addition, the average customer acquisition cost was around 150 U S dollars in the fourth quarter and with the further improvement through our Hong Kong and Singapore shares clearing efficiency. The overall clearing fee as a percentage of commission income has dropped to a historical low of only 8%.
Speaker Change: Both of which are industry, leading low levels.
Speaker Change: Indicating that we're reducing our variable costs and improved appropriate for efficiency, while ensuring yo for quality and product.
Speaker Change: There are advantages in R&D over the year.
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Tianhua Wu: Lao Wu International has launched many localization features in different markets to better serve local users and gain more business license plates to enhance the quality of our products. For example, in the Singapore market, we cooperated with a local holding company to launch the Tiger Boss Bank Card in February this year. This is the first Singapore-based card that allows users to purchase U.S. stocks through their credit cards. The product connects the user's daily consumption with the acquisition of U.S. stock assets and naturally allows more local users to participate in U.S. stock investment.
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Tianhua Wu: In addition, in April, we launched a contract trading account for local users in Singapore based on the preferences of local users in Singapore and the trust of local exchanges. After you open the account, you don't need to log in. You can buy and sell stocks, ETFs, etc. We are the first Singapore-based technology brokerage company to provide local counter-exchange functions.
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Tianhua Wu: In the first quarter, we rolled out numerous localized features across different markets to better serve our users, and we also gained more licenses to diversify our product offering. In the Singapore market, we collaborated with a local licensed partner to launch the TigerGold debit card in February, which is the first debit card in Singapore that allows users to earn fractional shares rewards from their daily spending. This product connects users' everyday consumption to stock ownership and more naturally onboards local users into U.S. stock investing.
Speaker Change: In the fourth quarter, we wrote off numerous localized feature across different markets to better serve our users.
And also gain more licenses to diversify our product offerings.
Speaker Change: In the Singapore market have collaborated with a local license partner to launch the taiga. Both debit card in February which is the first debit card in Singapore that allows users to our fractional shares rewards from their daily spending.
Speaker Change: This product connects users everyday consumption to stock ownership and more naturally onboarding local users into U S stock investing.
Tianhua Wu: Additionally, catering to local Singaporeans' needs and the local credit system, we launched the Cash Boost account feature in April. The Tiger Brokers' Cash Boost account operates on a contract trading strategy without an initial deposit required. Tiger Brokers is the first fintech broker in Singapore to offer contract facilities.
Speaker Change: Additionally, catering to local Singaporeans nave and the local credit system with laughter.
Speaker Change: Our cash post account featuring April the Tiger brokers Casuals account operates our contract radial strategy without initial deposit required tiger brokers workforce intact broker in Singapore to offer contract facilities.
Tianhua Wu: In the Hong Kong market, we got the first Hong Kong SSA approval and completed the upgrade of the No. 1 card, allowing professional investors to trade limited virtual assets through the tiger vouchers. In April, it was officially launched in Laos and Hong Kong.
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Tianhua Wu: It has become one of the earliest online exchanges to provide virtual currency transactions for users. Sponsored ADR Class A, In the future, we can provide investors with a series of asset management services, including Sponsored ADR Class A and Group Investment Plans for Specialized Investors.
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Tianhua Wu: In Hong Kong, we updated our Type 1 license to include virtual asset dealing services for professional investors in the first quarter and officially launched this feature in April, making us one of the first mainstream online brokerage firms in Hong Kong to provide cryptocurrency trading services to professional investors. Also, we obtained a Type 9 license in March so that we can provide asset management services to investors.
Speaker Change: In Hong Kong, we uplifted our tech one license to include peripheral effect billing services for professional investors in the first quarter and officially launched with FIFA in April making us one of the first mainstream online brokerage firm in Hong Kong to provide crypto currency trading services to professional investors.
Speaker Change: Also we often type nine license in March so that we can provide asset management services to investors.
Tianhua Wu: In addition, we have also made significant upgrades in product features to better meet the user's investment needs. First, we have upgraded the U.S. stock market trading function to facilitate the 24-hour trading of U.S. stocks and securities for users in all regions of the world, especially in the Asia-Pacific region, and to seize market opportunities more timely. Secondly, we have made major upgrades to Xiquan trading. Sponsored ADR Class A
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Tianhua Wu: Apart from that, we wrote out two major product upgrades to better meet investor needs. Firstly, we launched the Overnight Trading feature, which allows users, particularly in the Asia-Pacific region, to trade U.S. stocks and ETFs during local market hours and capture more market opportunities. Secondly, we've upgraded our option trading capabilities by introducing the US option early access or do not access feature. This allows our clients to better mitigate potential volatility risks of in-the-money options and the liquidity challenges of deep in-the-money options before expiration.
Speaker Change: Apart from those we wrote our two major product upgrades to better meet investor needs.
Speaker Change: Firstly, we announced overnight trading feature which allows user, particularly in the Asia Pacific region, which were U S stocks and Etfs during local market hours and capture more market opportunity.
Speaker Change: Secondly, we have upgraded our option trading capabilities by introducing the U S. Akshay early exercise or do not access features.
Speaker Change: This allows our clients to a bag or Medicaid potential productivity risks.
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Tianhua Wu: Our 2B business continues to perform well. In investment banking, we annualized 5 US and Hong Kong ICOs in the first quarter, including Concord Healthcare Group and Lianlian Digitech. In our ESOP business, we added 22 new clients in the first quarter, bringing the total number of ESOP clients served to 557 by the end of the first quarter of 2024, an increase of 24% year-over-year.
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Aron Lee: First, let's welcome CFO Zhang to report on the financial details. Now, I'd like to invite our CFO, John, to go over our financial...
Since you're the CFO job doesn't really worry about that houses here.
Speaker Change: Now I'd like to invite our CFO John took over our financials.
Fei Zeng: All right. Thanks, Tianhua and Aron. Let me go through our financial performance for the first quarter. All numbers are in US dollars. As Tianhua mentioned earlier, we did see market sentiment improving this quarter versus last quarter. Commission income was $27.8 million, which increased 9% year-over-year and 27% quarter-over-quarter. Interest income was $43.8 million, which increased 27% year-over-year and 10% quarter-over-quarter. Please note we reclassify the interest income generated from US TBO from non-operating gain or loss to interest income in the top line.
John: Alright, Thanks Carolina, Aaron Let me go through our financial performance for the first quarter all numbers are in U S. Dollar.
John: As I mentioned earlier, we did see market sentiment improving this quarter versus last quarter.
John: <unk> income was 27 8 million increased 9% year over year, and 27% quarter over quarter.
Speaker Change #100: Interest income was $43 8 million increased 27% year over year, and 10% quarter over quarter.
Chris: Chris noted, we reclassify the interest income generated from the U S T Bill from nonoperating gain or loss to interest income in the top line. We see this revenue going forward as part of our routine pieces. So it should be reflected in our operating income.
Fei Zeng: We see this revenue going forward as part of our routine business, so it should be reflected in our operating income. Together, total revenue reached $78.9 million this quarter, an increase of 19% year-over-year and 13% quarter-over-quarter. Cash equity take rate was 6.3 bps this quarter, slightly decreased from 6.5 bps last quarter. Within commission revenue, about 65% comes from cash equities, 30% from options, and the rest from futures and other products. Now I'm switching to KOS.
Chris: Together total revenue reached $78 9 million this quarter increase of 19% year over year and 13% quarter over quarter.
Speaker Change #102: Cash equity take rate was six three bps. This quarter, it's 90 decreased by $6 five bps as of last quarter within commission revenue above 65% comes from cash equities, 30% from options and the rest from future some other products.
Speaker Change #103: Now switching to cost.
Fei Zeng: Interest expense was $14.8 million, increased by 76% from the same quarter of last year, in line with the high interest rate environment. Execution and clearing expenses were 2.2 million, decreased 8% from the same period of last year, primarily due to more efficiency in self-clearing for Hong Kong and Singapore securities. We have gradually moved our Hong Kong equity position to Tiger Broker Hong Kong since we onboarded the Hong Kong retail market.
Speaker Change #104: Interest expense was $14 8 million increased by 70, sorry increased by 70, 676% from same quarter of last year.
Speaker Change #104: And I wish the high interest rate environment.
Speaker Change #105: Execution and clearing expense were $2 2 million decreased 8% from the same period last year, primarily due to more efficiency in self clearing for U S for Hong Kong, Singapore Securities.
Speaker Change #106: We have gradually moved to Hong Kong equity position to Tiger, Boca Hong Kong, Australia, Hong Kong retail market.
Fei Zeng: And we have seen cash equity clearing expenses per annuity of commission go down from time to time during the past year. Employee Compensation and Benefit Expense were $27.8 million. An increase of 14% year-over-year due to a headcount increase to strengthen ORC growth and R&D. However, occupancy depreciation and amortization expense decreased 12% to 2.1 million. Communication and market data expenses were $8.6 million, an increase of 23% year-over-year due to the increase in the user base and IT-related services.
Speaker Change #106: And we have seen cash equity clearing expense per that surety of commission went down from time to time during the past year.
Speaker Change #107: Employee compensation and benefits expense were $27 8 million.
Speaker Change #108: An increase of 14% year over year due to headcount increase to strengthen our sequels and the R&D.
Speaker Change #108: Occupancy depreciation and amortization expense decreased 12% to $2 1 million.
Speaker Change #108: Communication and market data expenses were $8 6 million, an increase of 23% year over year due to the increase in user base and the IP related services.
Speaker Change #108: Marketing expenses were $4 4 million this quarter decreased 15% year over year, as we keep optimizing our marketing channel and our strategy.
Speaker Change #108: General and administrative expense were $5 7 million, an increase of 26% year over year due to an increase in professional service fees.
Speaker Change #108: Total operating costs were $50 8 million, an increase of 11% from the same quarter of last year.
Speaker Change #108: As a result bottleneck increased on both GAAP and non-GAAP basis.
Speaker Change #108: GAAP net income turned positive to $12 3 million versus a GAAP net loss of $1 8 million in the previous quarter and an increase of 55% year over year lung.
Speaker Change #108: non-GAAP net income was $14 7 million increased 42% compared to the same quarter of last year.
Fei Zeng: Marketing expense was $4.4 million this quarter, decreased 15% year over year as we keep optimizing our marketing channel and strategy. General and administrative expenses were $5.7 million, an increase of 26% year-over-year due to an increase in professional service fees. Total operating costs were $50.8 million, an increase of 11% from the same quarter of last year. As a result, the bottom line increased on both a gap and non-gap basis. GAAP-led income turned positive to $12.3 million versus a GAAP-led loss of $1.8 million in the previous quarter and increased 55% year-over-year. Long gap led income was 14.7 million, which increased 42% compared to the same quarter of last year. Now I have concluded our presentation. Operator, please open the line for Q&A.
Speaker Change #109: Now I have concluded my hour presentation ultra.
Speaker Change #110: Operator, please open the line for Q&A.
Operator: Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Please stand by while we compile the Q&A queue. We'll now go to our first question. Our first question comes from the line of Yufan from CICC. Please go ahead with your question.
Speaker Change #111: Thank you to ask a question you will need to press star one on one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker Change #112: Please stand by while we compile the Q&A queue.
Speaker Change #112: Okay.
Speaker Change #112: Yeah.
Speaker Change #113: We'll now go to our first question.
<unk> fan: Our first question comes from the line of <unk> fan from TICC. Please go ahead with your question.
Yufan: Thank you for giving me the opportunity to ask this question. I'm Fan You, an analyst at Zhongding. I have two questions to ask you. First, we just saw that a new customer of 2.9 million yuan was achieved in the first quarter. In fact, the management team also mentioned that in the second quarter, the total number of new customers in the past two months has exceeded 35,000.
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Delek: I'd now like to Delek is Lindsay.
Jonathan: Thanks management for taking my question. This is Jonathan from SEC I have two questions. The.
Yufan: Combined with the previous company's guidance of 150,000 new customers for the whole year, I would like to ask the management team whether we should continue to maintain the guidance of 150,000 new customers for the whole year. The second question is also related to this. I would also like to ask the management team, when we look at the current situation in the second quarter, what is the overall situation on the customer's deposit and the progress of the customer's transaction return? Let me quickly translate my question. Thanks management for taking my question. This is You You Fan from CICC.
Yufan: I have two questions to ask. The first one is regarding the four-year guidance. We added nearly 29,000 new funded accounts in Q1 and, in April and May, we already acquired more than 35,000 new funded accounts. So will we still maintain our four-year guidance? And the second question is about our business progress in Q2. How is the run rate of the asset inflow, trading velocity, and total client assets up to now?
Speaker Change #128: The first one is regarding the full year guidance. We added 29000, new funded accounts in Q1 and in April and May already acquired more than 75000, new funded accounts. So shall we still maintain our full year guidance and the second question is about our business progress in Q2.
How is the run rate of the asset inflow trading velocity and total client assets up to now.
Speaker Change #129: Oh, what I heard is that.
Operator: Thank you. I'll be back in a moment. Sponsored ADR Class A
Speaker Change #129: Okay.
This is John.
Sure.
Speaker Change #130: You said it all that portion of Egypt.
Speaker Change #130: I'm sorry.
Speaker Change #130: Ally.
Operator: Please stand by while the speakers reconnect.
Speaker Change #131: Please standby will disappear.
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Speaker Change #132: Please standby harvest speakers reconnect.
Operator: Hi Operator, can you hear us now? Yes, you may come in.
Operator: Hi, operator.
Operator: Yes, you may commence.
Speaker Change #134: Now she may commence.
Speaker Change #135: Okay. Okay.
Speaker Change #135: Yes.
Tianhua Wu: I would like to answer this question. Our company values our model very much. We will not sacrifice our quality for the growth of quantity. In the first quarter, we made some dynamic adjustments in terms of supply channels. For example, ROI was not suitable, and the return cycle did not meet the standard. We terminated the related cooperation.
ASIC Lindsay: Lastly, this ASIC Lindsay.
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Speaker Change #138: He owns that easy to Jacobs coach at Altamira, and sort of as you said, whether it'll handheld yet so.
Speaker Change #138: Ally have a ship equipment drove EBITDA balance sheet up so.
Tianhua Wu: As you can see, in the first quarter, the quality of our increased users has improved. In the first quarter, our increased users in Hong Kong and Singapore reached an average of 180,000 and 140,000 USD. Recently, we have seen the overall recovery of the U.S. stock market and the continuous rise of the Hong Kong stock market. In the second quarter, we will make appropriate deployments and adjustments. In addition, in the second quarter, we launched the Fox Bank Card and Counter Transaction, which are popular among local users. Sponsored ADR Class A, We are confident in our goal of reaching tens of thousands of new users by the end of the year. We will continue to guide you.
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Speaker Change #143: <unk>, David <unk>, and Daniel quota will be out hard from ICT regime.
Tianhua Wu: We place great importance on our profitability model and will not compromise customer quality merely for user number growth. In the first quarter, we adjusted our acquisition channels and terminated partnerships with some vendors that did not meet our ROI or payback period targets.
Speaker Change #144: We place great importance on our perfect prediction model and we will not compromise customer quality merely for the user number growth during the first quarter, we had adjusted our acquisition channels and terminated partnership with some vendor that did not meet our ROI or payback period targets. So as a result, the quality of our new user has cut.
Tianhua Wu: As a result, the quality of our new users has continued to improve in the first quarter. Recently, we've also seen a recovery in market activity in both the US and Hong Kong markets. Based on this, we've increased our customer acquisition input in the second quarter. Also, the launch of the TigerPulse Debit Card and contract trading feature in Singapore this quarter has also been very well received by local users. So consequently, we've already onboarded over 35,000 new funded users in April and May. We are therefore confident of meeting our 4-year guidance of adding at least 150,000 new Fintech users.
Speaker Change #145: <unk> improved in the first quarter with average not that inflow of new funded by Hong Hall in Singapore market, reaching 18000 unfortunate thousand respectively.
Speaker Change #145: Recently, we've also seen a recovery in market activity in both U S and Hong Kong market based on this increased our cost and recognition of input in effect the corner, although the launch of the Tiger both debit card and contract reading feature in Singapore. This quarter has also been very well received by local users. So consequently, we've already on boarded over three.
Speaker Change #145: Southern Europe and it users April and May.
Speaker Change #145: Therefore confident in meeting our full year guidance.
Speaker Change #145: At least 150000 Buchanan juices.
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Tianhua Wu: [inaudible] At the income level, we can see that the market share for April and May has increased further on the basis of the first quarter. In terms of stock trading volume, the share price has also increased in the second quarter. As we continue to expand in the Hong Kong market, we believe that the proportion of US shares in trading volume will also be healthier. In addition, interest-related business profits also maintained a stable return in the second quarter.
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Tianhua Wu: This year, we have launched a wide range of functions on the Laowu platform, including BOSS bank cards, contract transactions, disks, virtual currency transactions, and more. This has further enhanced the richness of the product and increased user connectivity, transaction flexibility, and uptime. Okay, for the second question, for the first two months.
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Tianhua Wu: For the second question, for the first two months of the second quarter, as I mentioned, the number of new funded accounts has improved significantly sequentially. Our client net asset inflow has also maintained strong momentum. Building on the momentum from the first quarter, market activity has remained robust in the recent two months, and the percentage of Hong Kong cash equity trading volume has also increased in the second quarter. And we believe that the mix of Hong Kong and US trading volume will be more diversified along with the growth of our Hong Kong clientele.
Speaker Change #152: Okay for the second question for.
Speaker Change #152: For the first two months of the second quarter as I mentioned the number of coupon at account has improved significantly sequentially.
Speaker Change #152: Our client net asset inflow has also maintained strong momentum building on the momentum from the fourth quarter market activity has remained robust in the recent promo and.
Speaker Change #152: And the percentage of Qualcomm cash equity trading volume has also increased in the second quarter and we believe that the mix of Hong Kong and the U S trading volume will be more diversified along with the growth of our Hong Kong clientele.
Tianhua Wu: Interest rate income has also remained stable sequentially so far in the second quarter. We've also recently rolled out various new features on the Tegra platform, including debit card, contract trading, overnight trading, and crypto to further expand our product offerings, enhance the user experience, and increase our. Thank you, operator. Please move on to the next question.
Speaker Change #153: Interest rate income has also remained stable sequentially so far in the second quarter.
Speaker Change #153: If also recently rolled out various new features on Tegra platform, including debit card contract treating overnight trading and crypto to further expand our product offerings, you have the user experience and increase our pool.
Speaker Change #154: Thank you operator move onto the next question.
Speaker Change #155: Thank you.
Speaker Change #156: Please standby.
Operator: Our next question comes from the line of Edmund Fox from DBS. Please go ahead; your line is open.
Speaker Change #157: Our next question comes from the line of Ekman from DBS. Please go ahead. Your line is open.
Edmund Fox: Thank you, Guan Yicheng. I'm MFOC from Fintech. I have two questions.
Speaker Change #158: I'll say they want anytime now assessing companies here in the box.
Edmund Fox: First, I'd like to ask Guan Yicheng to tell us more about the situation of the first quarter's new entry-level users in the region. The second question is about the Hong Kong market. The company has entered the Hong Kong retail market for more than a year now. I'd like to ask if you think the current development situation is in line with expectations. Also, the Hong Kong market is growing rapidly. Do you have any strategies to maintain a good growth trend in the Hong Kong market? Finally, how is the company's latest progress in the field of virtual assets? Thank you. Let me translate it for you.
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Speaker Change #166: Management.
Speaker Change #167: I have two questions.
Speaker Change #168: The first question.
Speaker Change #168: What is the regional breakdown looks like Nielsen accounts during the first quarter.
Speaker Change #168: The second question is about Hong Kong market.
Speaker Change #169: Does the company think persist development in Hong Kong meets our expectation also in view of the fierce competition because the company has any plans to maintain our growth momentum and lastly, how is Tigers latest progress crypto trading. Thank you.
Speaker Change #168: Yes.
Hello.
Tianhua Wu: In the first quarter, more than half of our new users came from Singapore and surrounding areas. About 20% are from the U.S., more than 15% are from New South Wales, Australia, and 10% or more are from Hong Kong.
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Tianhua Wu: In the first quarter, over 50% of new funded accounts came from Singapore and Southeast Asia, around 20% came from the U.S. market, over 15% were from the Australia and New Zealand region, and more than 10% were from the Hong Kong market. I'll hand back the second question to our people, John.
Speaker Change #173: The first question in the fourth quarter over 50% of new funded accounts came from Singapore and Southeast Asia around 20% came from the U S market over 15% from the Australia, and in yogurt and region and more than 10%, but from the Hong Kong market.
Speaker Change #172: Okay.
Speaker Change #174: I'll hand back to the second question Chocolate Botox.
Tianhua Wu: Thank you for your question. Now, let me answer your second question about the Hong Kong market. We have been in the Hong Kong market since the beginning of last year, and now we have been in it for more than a year. Overall, we think the development is still in line with expectations. Let me give you a brief overview of these aspects. First of all, when we first launched our business last year, we said that the main task was to reduce the cost of clearing Hong Kong stocks in Laos. And we have done it so far.
Speaker Change #174: Okay.
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Tianhua Wu: Because before the Hong Kong stocks were listed, the Hong Kong stocks trading in Laos did not make money, and even lost money. Therefore, our investment in Hong Kong stocks was very limited. Now, the clearing expense of Hong Kong stocks is about 20% of our gross commission, and it also helps to reduce the clearing rate of the entire group to 8%. This is very important to us.
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Tianhua Wu: Because only when the clearing rate is low can we operate Hong Kong stocks, and we can invest more production resources in Hong Kong stocks. Sponsored ADR Class A, In the future, with the gradual increase in Hong Kong stock trading, the credit loss rate will also gradually decrease. Next, let's talk about the products.
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Tianhua Wu: The products of Tiger Hong Kong are already very rich. In addition to Hong Kong stock, Meigu Qiquan, Beixiang Tong, etc., we also have fund-based supermarkets and financial products, such as FCN, which is a customized product. Recently, we also launched a 24-hour night-time transaction service.
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Tianhua Wu: In the third quarter, we will launch the two product features of Hong Kong Stock and Hong Kong Market, and at that time, the traditional financial software products will basically be complete. In terms of crypto, with the uplift of our No. 1 brand, we have become the first in Hong Kong to allow PR users to trade cryptocurrency, and they can also trade the 11 Bitcoin ETFs listed in the U.S. Users can participate in the investment of fiat and crypto through an old-fashioned app. Sponsored ADR Class A,, 10% 2060%, 10,, Let's talk more about the progress in the crypto First of all, we have upgraded to No. 1.
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Speaker Change #188: So it also has equipped towards acquiring you're going through this is that back. So as you know and so you have high since Sheila <unk> Hotel <unk> Spa critical the gel you tell me what the seeds of the ETF, which elements at the SFC peaceful now women being so essentially it's Anil I Shouldnt say, which are in Shanghai when way Shanghai living. So you don't go to you go into the spot critical.
Tianhua Wu: We can provide Spark crypto transactions for PI users and 11 Bitcoin ETFs in the U.S. At present, we are also waiting for SSCP to upgrade our retail platform. In this way, we hope to provide Spark crypto transactions for Hong Kong retail users in the near future. At the same time, we are the main brand of Quipto, and we are also the VATP of SFC, so we should be very compliant in the industry in terms of safety and compliance.
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Tianhua Wu: At the same time, our Quipto fee rate is the cheapest in Hong Kong at the moment, which is 20 Bip. At the same time, our app is very easy to use, just one app to connect virtual currency and traditional transactions. So after we entered the Hong Kong market a year ago, overall, the progress has been in line with our expectations. Few key points. First of all, when we first started, one of our priorities was to reduce the clearing cost for Tigris Hong Kong trading. So far, we have achieved this goal.
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Speaker Change #188: Now did you identify any Java, so after we enter Hong Kong market a.
Speaker Change #188: A year ago overall it the progress has been in line with our expectation.
Speaker Change #188: Key points first of all when we first started one of our priority was to reduce the clearing costs for Tigris concentrating.
Tianhua Wu: Before we had a Hong Kong license, we had to clear Hong Kong equities through other brokers. The fee was expensive, and Hong Kong stock trading was unprofitable for us, so our investment in the Hong Kong market was limited. Now the clearing expense for Hong Kong equity is less than 20% of gross commission, which has helped lower the group's overall clearing fee rate to around 8%. This is very important for us as we offer zero commission and zero platform fee for local users to trade Hong Kong cash equity.
Speaker Change #188: So far we have achieved this goal before we had had Hong Kong license we.
Speaker Change #188: We have the clear Hong Kong equities to other brokers.
Speaker Change #188: The fee was expensive and Hong Kong stock trading was unprofitable for us So our investment in Hong Kong market was limited.
Speaker Change #188: Now the clearing expense Pohang, Hong Kong equities missile and 'twenty personnel gross commission.
Speaker Change #188: Which has helped lower the group's overall clearing fee rate to around 8%.
Speaker Change #188: This is very important for us as we offer zero Commission and zero plant Praful fee for local users to trade Hong Kong cash equity.
Tianhua Wu: With lower clearing clearing expenses, we can increase our Hong Kong trading volume and invest more resources into product R&D. As our Hong Kong trading volume gradually increases, the clearing fee will further go down. In addition, we have a much more comprehensive product offering in Hong Kong versus before. Pegabroker Hong Kong currently supports cash equity trading for both Hong Kong and US shares, US option trading, loss-bound trading, and wealth management products like FCN.
Speaker Change #188: With lower clearing peering expense, we can increase our Hong Kong.
Speaker Change #189: Trading volume and the U S more resource into product R&D.
Speaker Change #189: As our Hong Kong trading volume gradually increase the clearing fee will further go down.
Speaker Change #190: In addition, we have a much more comprehensive product offering in Hong Kong versus before.
Speaker Change #191: <unk> broker Hong Kong currently supports cash equity trading proposed <unk> U S option trading loss upon trading wealth management pilot efficacy.
Tianhua Wu: We recently rolled out overnight trading, and we will be adding short selling and Hong Kong equity options in the third quarter. As for crypto, with our Type 1 license upgraded, we are now one of the first fintech brokers in Hong Kong allowing clients to trade spot crypto as well as 11 US Bitcoin ETFs. And for customer acquisition over the past year, we keep optimizing our account opening process, trying out different marketing strategies, and we are glad to see the contribution from the Hong Kong market has steadily increased to around 10% in terms of new funded users this quarter.
Speaker Change #191: We recently rolled out overnight trading and we will be adding short selling in Hong Kong equity options in in.
Speaker Change #191: In the third quarter.
Speaker Change #191: As for Crypto always start pipeline license uplifted. We're now one of the first fintech brokerage Hong Kong, allowing clients trade spat critical as well as USB, calling etfs.
Speaker Change #192: And if a customer acquisition over the past year, we keep optimizing our account planning process try out different marketing strategies, and we are going to see the contribution from Hong Kong market has steady increase to around 10% comes on you'll find any users this quarter.
Tianhua Wu: The quality and trading activities of our Hong Kong clients are also very good. The total client assets in Hong Kong have risen over 60% quarter over quarter and nearly 10 times year over year in the first quarter.
Speaker Change #192: The quality and trading activity itself, our Hong Kong clients is also very good.
Speaker Change #193: Total client assets in Hong Kong have raised over 60% quarter over quarter and a nearly 10 times year over year in the first quarter.
Speaker Change #193: Yes.
Operator: Okay, thank you. Operator, please welcome the next question. Thank you. Please stand by.
Okay. Thank you operator welcome the next question.
Speaker Change #194: Thank you please standby.
Operator: Our next question comes from the line of Alan Chen from Citi. Please go ahead; the line is open.
Speaker Change #195: Our next question comes from the line of Alan Chen from Citi. Please go ahead. Your line is open.
Wencan Kuang Chen: Thank you for giving me the opportunity to ask this question. I am Alan, a flight engineer at Huaxi. First of all, I would like to congratulate Guan Yicun on achieving a very good record.
Wencan Kuang Chen: So taking what you what you already do well if your question if this issue.
Wencan Kuang Chen: So Jason I'm going to buy essentials.
Wencan Kuang Chen: I have two questions to ask you today. The first one is about the two new products that we repeatedly mentioned on the call just now. Could Guan Yicun introduce them to us in detail?
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Wencan Kuang Chen: For example, can only existing customers use our BOSS debit card? Or can customers who do not have an account here directly use the card to purchase shares? For example, this is a new payment channel, right? And then there is the contract trading function here. If the customer does not have an account but can still make a transaction, how do we implement this blockage?
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Wencan Kuang Chen: I don't know what impact this product will have on our customer transactions and future risk costs. I don't know if Guan Yicun can analyze it for us. The second question is about the FX gain. In the last quarter, we had a pretty big FX loss. But this quarter, it seems that it has basically recovered.
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Wencan Kuang Chen: So I don't know how much FX gain we have in this quarter. If we look ahead, have we taken any measures to reduce the impact of FX gain or loss on our business? These are the two main questions today. I will quickly translate it.
Speaker Change #205: Thank you Michael.
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Wencan Kuang Chen: Thanks, management, for taking my questions. I have two questions today. The first question is on the two products that have been launched in Singapore. Could management give us a little bit more color on the products and on the debit cards? Are there any restrictions as to who can apply for this debit card?
Finally shot associates, Thanks management for taking my questions I have two questions. Today. The first question is on the true products that launched in Singapore.
Wencan Kuang Chen: Could this product be used as a customer acquisition tool for Tiger? And for the contract trading function, you mentioned that clients can trade stocks without depositing any funds into their brokerage accounts? I'm wondering how Tiger would manage risks if clients, let's say, make some losses in trading but have no funds in their accounts? And on a longer term, how would this contract trading function impact Tiger's financial performance? The second question is on FX gain.
Speaker Change #210: Management give us a little more color on the products and for the boss debit cuts is there any restrictions as taco can apply for this that they cut and could this product be used as a customer acquisition tool for tiger and for the Contra shading function you mentioned that clients can trade stocks without deposits in any fund.
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Speaker Change #211: Wondering how whats Tiger management.
Speaker Change #212: If clients, let's say makes some loss in training, but have no funding delek hunt and our longer term.
Speaker Change #212: With this contract rating function.
Speaker Change #213: Tiger its financial performance.
Speaker Change #214: And the second question on FX gain monitoring management.
Wencan Kuang Chen: I wonder if management could share how much FX gain you have booked in the first quarter. And looking forward, have you taken any actions to limit the impact of FX gain or loss on your earnings? That's my question. Thank you.
Management could share how much FX gain you have booked in the first quarter and looking forward have you taken any actions to limit the impact of FX gain or loss on.
Speaker Change #215: And that's my questions. Thank you.
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Tianhua Wu: Tiger, we have always insisted on product innovation. First of all, regarding Tiger's BOSS bank card, whether it is a storage user or an increased number of local users, it can be used to open and close the card. We have cooperated with local registration agencies to launch this card. The original intention was to combine the daily consumption scene of Singapore's local users with the trading scene of stocks. To be more specific, we support users to bind Apple Pay or GuoPay to their wallets for daily consumption 1% of the transaction fee for each transaction paid with this card, We will talk about Tesla and other popular U.S. stocks in the form of fractured stocks to users on the tiger platform [inaudible] First of all, there is no expiration date for ShuiGu There is no time limit What's more important is that this unique way of rewarding can stimulate users' investment enthusiasm and interest and enhance users' connection It can also gradually build its own investment group through the consumption of daily bank cards without the need for a large amount of capital investment We are the first local bank card brokerage company in Singapore to launch a bank card with this function Since the product was launched, it has been loved by local users As of the end of May, nearly 7,000 local users have signed up and the average number of users has exceeded our expectations
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Tianhua Wu: Hey Alan, first question regarding the Tiger Boss debit card. This card is available for both of our existing users and new users to use and apply for. So we launched this card with a local license partner. The intention behind this product was to connect users' daily spending with their, you know, stock trading activities. Specifically, the debit card allows users to link it to digital wallets like Apple Pay and Google Pay for everyday purchases.
Speaker Change #224: For first question regarding the anchor both debit card.
Speaker Change #225: <unk> is available for both our user and incremental Yosef.
Speaker Change #225: Okay.
Speaker Change #226: So we lost this card with a local.
Speaker Change #226: Partner the intention behind this product broker connect users daily spending with their stock trading activity caused by the big Labor debit card allows user to linkup with digital wallets like Apple pay and Google pay for everyday purchases.
Tianhua Wu: For every transaction made through this card, 1% of the transaction amount will be rewarded to the user's security account on the Tegra platform in the form of fractional shares of popular U.S. stocks like Tesla. Compared to traditional bank card reward schemes like cashback, loyalty points, or miles, we believe that fractional share rewards provide a better user experience. Firstly, there is no expiration date or lock-up period for the fractional share.
Speaker Change #226: For Abbvie for a private transaction made for this car by percent of transaction amount there'll be rewarded to the user security account on Tegra platform in the form of fractional share well below U S stocks like Tesla.
Speaker Change #226: Comparable traditional bank card rewards scheme, a cashback loyalty points a mile. We believe that the fractional share rewards provide a better user experience. Firstly there is no expiration days, a lockup period for the friction O'hare and more importantly, this unique type of reward cannot stimulate new users investment model.
Tianhua Wu: More importantly, this unique type of reward can stimulate new users' investment motivation and increase their stickiness to our platform. It also allows them to gradually build their investment portfolio through daily bank card spending without requiring a large initial cash out. And we are proud to be the first Fintech broker in Singapore to offer such a service. Since its launch, the product has been very well received by local users. As of the end of May, nearly 7,000 local users have signed up for this card, and the average transaction frequency from the cardholders has exceeded our expectations.
Speaker Change #226: Recent an increase there.
Speaker Change #226: Vessel at Alcoa allows them to gradually build their investment portfolio total daily bank card spending without requiring a large initial capital.
Speaker Change #226: And we are proud to be the FERC fintech broker in Singapore to offer such services.
Speaker Change #226: Effective launch the product has been very well received by local users as of the end of May nearly 7000 local users that signed up for this car and the average transaction frequency from our cardholders.
Speaker Change #226: <unk> our expectation.
Speaker Change #227: Glenn and Conor hitting.
Tianhua Wu: [inaudible] Lao Wu is also the first tech broker in Singapore to introduce this feature. This feature is a combination of Singapore's perfect credit system and a product that requires no initial capital investment for more experienced local traders. Through the applicant's credit assessment, the product can be transacted in time. From the user's perspective, we can see that the contract trading model provides more flexibility for experienced traders. They can buy and sell stocks at any time before the expiration date. There is no need to deposit any funds.
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Tianhua Wu: This allows investors to buy stocks through trading when there is no immediate funds available. If the stock price rises, investors can sell their stocks and get a profit from the contract. On the other hand, if the stock price falls, investors can use the available funds to pay the interest within 7 days. [inaudible] At present, our contract is only open to local users in Singapore. After the meeting, there will be a strict review process and measures in Europe and the Chinese capital to ensure that the customer's credit rating matches our authorized amount.
Tianhua Wu: In addition, if the customer has a loss, after more than two days, the system will automatically close the customer's account. At this time, the customer can only close the account and will not open it again. The number of customers will also automatically decrease due to the loss of the account until the customer's account is restored. Okay, so regarding the contract reading feature.
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Tianhua Wu: Okay, so regarding the contract trading feature, Tegra was the first FinTech broker in Singapore to offer this service, leveraging Singapore's comprehensive credit system. This feature caters to most seasoned traders by providing instant access to a certain trading limit based on their credit assessment without requiring any initial capital input. From the user's perspective, contract trading grants season the trader the flexibility to buy stock and sell it anytime before or on the foreselling date, without needing to deposit funds.
Speaker Change #234: Okay. So are regarding to the Coca trading feature Tiger with the FERC and tech broker in Singapore to offer the service.
Tianhua Wu: It also allows investors without immediate available capital in hand to purchase stock using the provided trading limit if the stock price rises. The difference can be pocketed at the contract gain. Conversely, if the share price drops, investors can settle the difference up to seven days later using their own funds. Given the credit-based nature of the contract trading, we have applied strong risk control. For example, this feature is currently only available to Singapore users, with a strict approval process to ensure the credit rating matches the authorized limit. Additionally, if losses exceed two days after settlement day without a top-up, the limit will be automatically frozen, permitting only closing positions. Limits are also automatically reduced by control losses until the user replenishes the gap.
Speaker Change #234: Elaborating, Singapore comprehensive credit system, if FIFA caterpillar most Stephen trader.
Speaker Change #234: By providing instant access to a certain trading limits based on their credit assessment without requiring any initial capital input.
Speaker Change #234: From the user's perspective, congratulating growths, even the treater the flexibility to buy stock and sell them any time before all of the post balance date.
Speaker Change #234: Open meeting to deposits, but also.
Speaker Change #234: Also a lot of investors without immediate available capital in hand to purchase stock within the provided trading limit.
If the stock price rise the.
Speaker Change #234: The difference can be a pocket here as the contract game and Conversely, if the share price drops investors can factor with the different after seven days theater bookings they're open.
Speaker Change #234: Given the credit space the nature of the contract trading we have we have applied throw risk control. For example, this feature is currently only available to Singapore users with a strict approval process to ensure our credit rating matches the authorized limit.
Speaker Change #234: If losses exceeded two days after our settlement day without a top up the limit will be automatically frozen for meeting only closing position.
They must also automatically reduces sorry reduced by contract losses until the user.
Speaker Change #234: Replenished the gap yes.
Speaker Change #234: Okay.
Tianhua Wu: OK, let me answer your second question. First of all, the mutual loss or profit on the old stock profit table is mainly due to the company's main U.S. dollar investment since it left the U.S. Sponsored ADR Class A, Compared to the end of last year, the dollar exchange rate risen in the first quarter and brought in more than $3 million in exchange profits. In the fourth quarter, we actually had a $7 million exchange loss. Currently, the US dollar exchange rate is relatively stable at the end of the first quarter, but we can't give a very clear judgment on how the future trend will be.
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Tianhua Wu: Of course, we also know that the exchange rate is a non-cash influence, so when we judge the profitability of the group, we will still put our focus on operating income, which is also relatively controllable for us. So this is also the reason why we put the national debt income in with the interest income in the revenue from this quarter. QE's TBL income is about $4.7 million. [inaudible] So, because the FX gain or loss is not something we can control, so to better assess the group's profitability and operations, we decided to move the revenue from Treasury bills into our top line under interest income. We feel this can give investors a better understanding of our routine business. So, in Q1, interest income from US Treasury investments was about 4.7 million dollars. Thank you.
Speaker Change #240: Well, let me answer that article Additionally, last nickel noncash seizure.
Speaker Change #241: Social element that Pandora Cheetos, maecenas, Zona isolate boundless won't Deanna some days ago operating incomes on mute, so what Michelle maybe I'll cocoanuts, so lets say its own back was episodes.
Speaker Change #242: So you do have some of that from the revenue in EMEA and the interest in kind of a unique to either to the TBO the solo lashes tableau seabed <unk> meeting.
Okay, and then if any seller so the FX gain and losses on our P&L are mainly due to the fluctuating the U S dollar against the RMB.
Speaker Change #242: And in New Zealand. So in Q1, the appreciation of the U S dollar compared to Q4, resulting in over 3 million FX gain.
Speaker Change #242: So.
Speaker Change #242: Because the FX gain or loss is not something we can control so to better assess the group's profitability and operating but we.
Speaker Change #242: We decided to move the revenue from Patricia Beal into our top line under interest income we feel this can give investor a better understanding of our.
Speaker Change #242: Routine business. So in Q1 interest income from U S. Treasury investment was about a $4 7 million USD. Thank you.
Operator: Hey Mel, please move on to the next question, please.
And now a physical bottleneck processes.
Operator: There are no further questions at this time, so I'll hand the call back to Aron for his closing remarks.
Speaker Change #243: There are no further questions at this time I will hand, the call back to Alan for closing remarks.
Aron Lee: I'd like to thank everyone for joining our call today. I'm now closing the call on behalf of the magazine team here at 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 for your time.
Wencan Kuang Chen: Thank you.
Speaker Change #244: To everyone for joining our call today are now closing the call on behalf of the Maxim team at 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 for the time.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.
Speaker Change #245: This concludes today's conference call. Thank you for participating you may now disconnect speakers. Please standby.
Speaker Change #245: Yes.
Speaker Change #245: [music].
Speaker Change #245: Okay.
[music].
Speaker Change #245: Yes.
Speaker Change #245: Yes.
Speaker Change #245: [music].