Q2 2024 UP Fintech Holding Ltd Earnings Call
Okay.
Speaker Change: Ladies and gentlemen, thank you for standing by him I'll come to the up Fintech holding Limited's second quarter 2024 earnings conference call.
Speaker Change: At this time all participants are in a listen only mode. There will be a presentation followed by a question and answer session.
Speaker Change: I must advise you that this conference is being recorded today August 24.
Speaker Change: I'll now turn the conference over to your first speaker today, Mr. Aaron Lee.
Speaker Change: Of Investor Relations. Thank you. Please go ahead.
Thank you definitely.
Speaker Change: Hello, everyone and thank you for joining us for the call today are Peter.
Speaker Change: That coating Ltd second quarter 2020 full earnings release was distributed earlier today and it's available on our IR website at IR <unk> com.
Speaker Change: Global Newswire services.
Mr Chairman: On the call today from upping that Mr Chairman.
Chairman and Chief Executive Officer, Mr. Johnson, Chief Financial Officer, Mr. Pollack C O U S Tiger Securities and Mr. Kenny <unk>, our financial controller.
Speaker Change: Mr. <unk> will give an overview of our music operations and discuss corporate highlights Mr. Toby will then discuss our financial results.
Speaker Change: We will both be available to answer your questions. During the Q&A session that follows their remarks.
Speaker Change: Now, let me cover the Safe Harbor statement.
Speaker Change: Statements.
Speaker Change: We are about to make other forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act up 1995, a number of factors could cause actual result could differ materially from those companies and your political statement.
Speaker Change: 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 furnished today August 30th 'twenty 'twenty four and our annual report on form 20-F filed on April 22nd 2024.
Speaker Change: We undertake no obligation to update any forward looking statement, except as required under.
Speaker Change: I believe colo.
Mr or: It's my pleasure to now introduce our chairman and Chief Executive Officer, Mr or.
Speaker Change: Mr. <unk> will make remarks Chinese breaks there'll be followed by English translation Mr.
Speaker Change: Please go ahead with your remarks.
Speaker Change: Yeah.
Speaker Change: Okay, I'm going to take away from job no.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Hello, everyone. Thank you for joining the Tiger brokers second quarter 2024 earnings conference call.
Speaker Change: Okay.
Speaker Change: Maybe what you should be able to come to.
Felicia: Felicia I'll wait to somebody's either with your team you shouldn't.
Speaker Change: Cause of concern.
Speaker Change: Sure.
Speaker Change: But she was telling me all.
Speaker Change: D G also function.
Speaker Change: Yes, sure well I mean I'm sure there's no shortage, she can be assumption or for NGL.
Felicia: Sure Felicia.
Speaker Change: Tito.
Speaker Change: So how did you go to a new showroom.
Speaker Change: She buys special imaging Columbia sung Jong I'm, usually a box.
Speaker Change: Can be found on I'm, just kind of audience.
Speaker Change: Oh down interest in golf.
Glenn: And Glenn.
Speaker Change: Or do you wait till you answer the kind of thing you will see new red somebody we already knew what's resonating so well the Ashland team.
Speaker Change: Oh, you're going to see Xiaomi Gung Ho with Deutsche Yamauchi hearings have been tweaking that you constantly reaching Cholmski Ventura, Joe Guy shot he's always on Clinton's allergies.
Speaker Change: Our digital channel Chi Chi, which is somehow xiaomi team infinity, but you don't hear and done Sachin killed off me Michele.
Speaker Change: Well I'll be honest.
Speaker Change: <unk> do you still have smartphone ship joy internships and they can go with that.
Speaker Change: What's your entry I think within the U.
Speaker Change: So now how much will it be milk sniffles here.
Speaker Change: Kishore Guy so can't drink alcohol Consol. So the street can be really essential by Xiaomi team Columbia assumption I'm, just finding Joe Combi assumption and you bought it.
Speaker Change: In the second quarter, the U S stock market continued to perform well and overall market activity further improved compared to the fourth quarter.
Speaker Change: This led to a sequential increase in credit trading volume across golf oxo in the future.
Speaker Change: Coming to income ratio was $34 1 million U S dollar.
Speaker Change: 102.7% colder for colder and 54, 9% year over year.
Speaker Change: The second highest quarterly commentary revenue our operating history.
Speaker Change: Our total revenue for the second quarter was $87 4 million last summer.
Speaker Change: All time high.
Speaker Change: You talked quite a I'll call it or increase of 10, 8% year over year increase of 32, 4%.
Speaker Change: Pat.
And both in line, our GAAP and non-GAAP net income attributable to our pretax was $2 $6 million and $5 2 million U S dollars respectively.
Speaker Change: The bottom line was negatively impacted by a loss provision of $13 2 million U S. Dollar relating to a case of Hong Kong classic and restore.
Speaker Change: That's 23, our company had already stopped similar Hong Kong equity stopped lagging and restore in response to market conditions and the risks.
Speaker Change: And there is no such risk exposure amount 50 abusers anymore.
Speaker Change: Excluding the impact of the loss provision our pre tax profit for the culture will be 19 port formula in U S dollar, reflecting a certain part of the 9% increase quarter over quarter and eight 3% increase year over year.
Speaker Change: It seems as though even cool.
Speaker Change: Sudden back in July.
Speaker Change: And jump back in January you told me, it's been done in Europe.
Speaker Change: She doesn't think Apple what you're glad you cheat sheets elephant talk.
Cool: My name called cool.
Speaker Change: Cool.
Speaker Change: Sheila This is Jim Schneider.
Speaker Change: Well you can see one center in Nashville last season with a mobile.
So you didn't get them all right.
Bob: Sure Bob I mentioned somebody right.
Can be channel and she and John just succeed.
Speaker Change: Cause on tariff on me in Juniors he argued cohort.
Speaker Change: Oh, Yeah, I'm half joking should help.
Speaker Change: Yes.
Speaker Change: And what you should see imaging.
She: She owns are awesome.
Speaker Change: What kind of a shock.
Speaker Change: Joshua essentially what you made kimbell cold calling.
Kathryn Shirley: Kathryn Shirley.
Speaker Change: She doesn't you don't call it underground at all so I'm not sure you're meeting.
Speaker Change: Congress Cingal Columbia chunks of Languish, Aneel Columbia, Shanshan passenger your balance sheet.
Speaker Change: Oh got him to come down closer to call. It just heightened engagement she could either.
Speaker Change: Junction Yeah sure some of you know Tom Standish Cingal.
Speaker Change: So that's what we are sure are you don't have to send off some time ago.
Speaker Change: Xiaomi is usually what you see if I'm if I'm correct.
Speaker Change: Also as a Seattle, which I'm not sure can there you show the Comanche yet.
Speaker Change: Shall I didn't if he should.
Speaker Change: Look on the door golfing out here what does she I.
Speaker Change: Now I'm sure you're swimming pools, I shouldn't go to Chicago, and some that you cant meet.
Speaker Change: In the second quarter.
At 48900 newly funded accounts.
Speaker Change: Representing a 69% sequential increase and a 68%.
Speaker Change: And create a year over year.
Speaker Change: Singapore and Southeast Asia region were the primary contributors.
Speaker Change: In the first half of this year, we're adding a total of 77700 newly funded accounts.
Speaker Change: Our comdata ask it anyway.
Speaker Change: Alright, and your guidance for a part of at least 50000, you'll be sending that conflicts tiny tiny form.
Speaker Change: In terms of client asset person.
Speaker Change: <unk> remained strong in the second quarter, our market to $1 7 billion U S dollar primarily from Singapore, and Hong Kong markets fueled by a $3 6 billion U S dollar mark to market gain that total kind of thought that by the end of the second quarter increased by 16% quarter over quarter, and our bandwidth and 21% year over year.
Speaker Change: $238 2 billion U S dollar at all time high.
Speaker Change: Well it could add to see seven consecutive quarterly growth in total client assets, It's nighthawk, Oh, sorry, with new hires in the past three quarters.
Speaker Change: Notably because I'm not that from the Hong Kong market doubled quarter over quarter.
Speaker Change: Our competency attracting high quality users in markets like Singapore, and Hong Kong through superior product era, and local knowledge also underscores the significant growth potential in the markets. We currently focus huh.
Speaker Change: Yeah.
Speaker Change: And since I'm in a comfortable place.
Speaker Change: Well, it's an adult in the article.
Speaker Change: So San Juan and Sapphire for the China Telecom with Shannon, So Gung Ho Hum Phineas and <unk> Triple net.
Speaker Change: Good luck entitlement for Telecom Italia and of course, so absolutely.
Speaker Change: Since I founded on Thundershower gingerly.
Speaker Change: It's Alex you can call the xiaomi.
Speaker Change: Not that I want me ghansham seeing competition without them doing that.
Speaker Change: So that's I see it's been a problem yet.
Julia: Julia you had for lunch and yeah, hi, there shouldn't T C L.
Speaker Change: Hi, pharma change that Joey for which you all know a whole change in Corp. She junkies don't Fool Court enjoining children.
Speaker Change: Is there won't be a placeholder, but your weight, who many of you.
Speaker Change: You can either your.
Speaker Change: Sure she needs, which has maybe ranch geology.
Speaker Change: Well you don't want the engine I'm sorry.
Speaker Change: Yeah go ahead.
Speaker Change: Are you trying to defend your Italian pool.
Speaker Change: In the second quarter, we continued to enhance our product offerings by introducing a range of localized features.
Speaker Change: August we lost two key functionalities, Hong Kong stock option and short Savi for hospital.
Speaker Change: Now we offer all major trillium product for Hong Kong market hosting our competitiveness and appeal to local users.
Speaker Change: We also plan to introduce a combo options dressy feature for Hong Kong stock auction.
Speaker Change: Additionally, since our Hong Kong subsidiary officially at least it is tech or license to include virtual author surveys for professional you back in January of this year, maybe asleep approved in June to expand its license to retail investors.
Speaker Change: Long call, but also our zero Commission and no platform fee for both professional investors.
Speaker Change: Called retail clients, who trade spot crypto currency on Tegra platform.
Speaker Change: Supporting our real time settlement portrait transaction in U S dollar.
Speaker Change: This progress user with a truly secure convenient and cost effective global trading experience.
Well, we Havent got human comes off too.
Speaker Change: Easy, though was actually alcohol Pedro Parente, Showtime shelving, if I say it what it gives you call it contract equivalent Joel.
Speaker Change: So it won't all be so nelligan quizzical about Hudson.
Speaker Change: And he has seen a thumbnail on machines and routine cool cuts Chicago.
Speaker Change: Hoy at all or you won't even see switching to another topic and ship.
Speaker Change: Well, let's take it would seem that I mean July well means that you'll have a home and they want to yet.
Speaker Change: Payroll they wireless this alpha generation, Okay cool.
Speaker Change: I mean couldn't you just shook out gotcha, okay, well why can't.
Speaker Change: Okay.
Speaker Change: Now they might make me or how does that lead you to you I'm going to do it again.
Speaker Change: The medical without G go chicken through southern woman that she aging Cindy.
Speaker Change: Just curious as Haynesville wells have done.
Speaker Change: I mean, you talked about energy.
Speaker Change: Jim what you shouldn't California Union corridor.
Michelle: Thank you Michelle.
Speaker Change: We are also pleased to report that after introducing taiga, both debit card kind of contract renewal featuring Singapore market in the fourth quarter, we have received.
Speaker Change: Spread quality of feedback from existing users, which led to a significant increase in the number of newly family that cough and cardholders with notable improvement in both user activity and thickness.
Speaker Change: In addition to launching new products, we're continuing to refine the user experience our safety feature.
Speaker Change: Overnight trading for U S. Gulf have not excited to support up to 9500 golf and ETF offering greater convenience for clients to trade U S stocks any gaps you're in a local market hours and capture more market opportunity.
Speaker Change: Moreover, combo option strategies beat her for U S. Doc upgrading it in July.
Speaker Change: For like options trade execution based on that marketing requirements.
Speaker Change: Bulgaria housing trading strategy flexibility and marketing efficiency.
Speaker Change: Oh Gee, that's B U R triples, with Aladdin should hold.
Speaker Change: They argue the orange and yellow sharp companywide yourself.
Speaker Change: Alcohol novel longtime quoted absolutely.
Speaker Change: You don't.
Speaker Change: So you can record the Hawaii, Glenn maybe why I chose to Gaslog, Seattle shall be interim looks I'm sure you.
Speaker Change: You saw them, you'll find me and you're going to be arguing with him and I'm sure that you felt comfortable.
Jonathan: It will evaluate scheduled yeah tell me the number Jonathan.
Speaker Change: Our <unk> business continues to perform well in investment banking, we I know real class U S. Ipos in the second quarter, including a lot will go and do that.
Speaker Change: And we serve as the exclusive leaseback puts hungering technologies and Wildlife U S. IPO.
Speaker Change: Yourself business we're in.
Speaker Change: 22, new clients in the second quarter, bringing the total number if you subtract sort of up to 570 live at the end of the second quarter of 2024 increased by 29% year over year.
Speaker Change: Sanjay several job doesn't go your way blackouts houses here.
Speaker Change: Now I would like to invite our CFO John to go over our financial.
John: Thanks, Erin they.
John: Let me go through our financial performance for the second quarter all numbers are in U S. Dollar.
John: Market was more active in the second quarter versus the first quarter trading Commission reached $34 1 billion.
Speaker Change: Increased 23, 23% quarter over quarter, and a 55% year over year.
Speaker Change: Revenue reached all time high at 87, 4 billion increased 11% quarter over quarter and 32% year over year.
Speaker Change: Cash equities takeaway was $6 seven this quarter.
Speaker Change: That increased by 623 people saw last quarter.
Speaker Change: We've been publishing revenue about 65% comes from cash equities.
70% of all options and the restaurant futures and the other products.
Speaker Change: Now onto cost.
Speaker Change: Interest expense was $13 6 million.
Speaker Change: Increased by 70% from the same quarter of last year.
Speaker Change: The high interest rate environment.
Speaker Change: Execution and clearing expense were $2 8 billion.
Speaker Change: 38% from the same period of last year.
Speaker Change: Primarily due to an increase in our trading volume.
Speaker Change: And the way keeping improving our clearing efficiencies.
Speaker Change: That's the equity clearing expense as a percentage of cash equity can be she needs about 2.1 question this quarter.
Speaker Change: Which remain strong because I always think that's true.
Speaker Change #100: Employee compensation and benefit expense were $28 6 million.
Speaker Change #101: The increase up 20% year over year due to head count increase to shoot you always see a growth in the R&D.
Speaker Change #101: Occupancy depreciation and amortization expense decreased 17% to $2 1 million.
Speaker Change #101: Communication and market data expenses were $8 8 million, an increase of 14% year over year due to an increase in your base and IP related services.
Speaker Change #101: Okay.
Marketing expenses were $6 4 million this quarter.
Speaker Change #101: Included certain increased 36% year over year.
Speaker Change #101: As we saw market backdrop, what's more supportive for user acquisition spending in the second quarter.
General and administrative expense were $20 2 million.
Speaker Change #102: An increase of three.
Speaker Change #102: 145% year over year due to activity.
Speaker Change #102: 13 point to be only one time loss publishing we incurred this quarter.
Speaker Change #102: Total operating costs were 69 million.
Speaker Change #102: An increase of 52% from the same quarter of last year.
Speaker Change #102: As a result, our GAAP net income and non-GAAP net income for the second quarter were $2 6 million and $5 2 million respectively.
Speaker Change #102: If excluding the impact from the loss provision our pretax profit for the second quarter would be putting 4 million increased 14% quarter over quarter and 8% year over year.
Speaker Change #103: Now I have conclude our presentation.
Speaker Change #104: Operator, please open the line for Q&A.
Speaker Change #105: As a reminder, if you'd like to ask question. Please press star one one and wait for a name to be announced.
Okay. So you will request please press star one once again.
Speaker Change #105: One moment for the first question.
Speaker Change #105: Yeah.
Speaker Change #105: Yeah.
Speaker Change #106: Our first question comes from the line of your plan from <unk>. Please go ahead.
Speaker Change #105: Yeah.
Speaker Change #105: Hey.
Speaker Change #107: Just wanted to get once you get your quick I'll, let you draw at Ingalls.
Speaker Change #108: Well, what's it been well when she said she Kelley Yeah, you did a partnership with Mckesson.
Speaker Change #109: I'll focus on debate I don't want to make or how should be helpful.
Speaker Change #110: I don't know that doesn't do that.
Speaker Change #109: Yeah.
Speaker Change #109: Hum.
Speaker Change #111: No one else does.
Speaker Change #111: Is that Oh today sits in Parkways history.
Speaker Change #111: Cool cool.
Speaker Change #111: So a couple of things have been more than that I do think how would you I'm sure know how does M&A yourself.
Are there she celgene Televisa.
Speaker Change #111: You don't see Chicago.
Speaker Change #111: But you'll really see I just don't.
Speaker Change #113: That's what she was telling me they make that the actual.
Speaker Change #111: Sure.
But you don't ship what pieces on it yet.
Speaker Change #114: I'll quickly translate my question. This is yoyo sung from TICC, Oh I have two questions here. The first of all is that we see the stock market has been quite long until in others and Q3 have already been underway for two loans I can Michele songs always over the past two loans.
Speaker Change #115: Such as the number of new users are the Chinese client assets and also the impact on the financial performance and seven if we enter a rate cutting cycle, how much tighter Jesse all business and what kind of impact a say a like a 25 basis points related costs.
On the interest income.
Speaker Change #115: Yeah.
Speaker Change #116: Oh, Oh Oh.
Speaker Change #117: Well that would not be able to join them without the orca tanks.
Speaker Change #116: Cool.
San Diego was a J.
Speaker Change #116: Yes, sure of course, it hasn't senior with a T shirt.
Speaker Change #116: Susan.
Speaker Change #116: Oh sure Yeah, Yeah, sure Archie the crushing syndrome to share.
Speaker Change #118: That's helpful.
Our children constantly initial tranche outlandish cingal.
Speaker Change #119: I met with the actual number was <unk>.
Speaker Change #119: That's a good idea that you showed your time value is a totally new hydrophone books, Florida, Georgia showed logical make what Austria Meningeal Jacobs trading then shows how many shop.
But he didn't see that.
Well remember him.
Speaker Change #120: So you said should not eat up.
Speaker Change #120: Okay I'll, Chris So the first question in terms of kind of offset the China net asset inflow was still strong in the first two months after the third quarter and the number of newly funded users also continued their rapid growth as we saw in the second quarter.
Speaker Change #121: If you look at numbers in July we saw the highest single month revenue our operating history well August is not yet completed trading volume. So far is also very effective Hum September is a bit uncertain due to factors like U S election in fact interest rate decreases but overall.
Speaker Change #121: We are quite satisfied with how Q3 has been shaping up so far.
Speaker Change #121: Yes.
Speaker Change #122: Although they've Oh I need Thiago in Cuba, just a little bit.
Speaker Change #123: So it's actually not with the consumer at least you sold them now goes away as you put me at ease out tell me, it's only loss.
Speaker Change #123: So with that I couldn't really tell you down so you won't see that show.
It's not only been true maintenance with since either John seafood. We just didn't have the fact, you know nice shiny that don't hedge also crucial.
Speaker Change #124: <unk> D. A y D C Shanghai, Yogurts, hyperglycemia, which again.
Uh huh.
Joseph J.: So it wasn't Joseph J.
Speaker Change #124: J D.
Speaker Change #124: Shingle Gee argued to the year with LIBOR.
Speaker Change #124: So at least you sold especially on that what would you do.
Speaker Change #124: Don't you do its own T cells with a booming junk die you can park Central New York.
Speaker Change #126: And I'll watch adventurous nature.
Speaker Change #127: Recalled by the Federal reserve of my they could easily have already interest income, but we also believe a critical market activities, leading to a more active trading volume and the company's fee income.
Speaker Change #128: Therefore, we will address our strategy based on the actual pays off to be caught in the market reactions.
Speaker Change #128: Sure they will find a balance among our competition interest rate.
Speaker Change #128: <unk> and wealth management.
Speaker Change #129: So the <unk> 25 people its a mixed months our calculation based on our second quarter pizza at scale and the interesting part such as the impact on total revenue for.
Speaker Change #129: <unk> for the fourth quarter would be up 1%.
Speaker Change #130: How about that.
Speaker Change #130:
Speaker Change #131: Uh huh.
Speaker Change #130: Yeah.
Speaker Change #132: Operator, please move onto the next question one moment for the next question.
Speaker Change #133: Our next question comes from Cindy Wang from China Renaissance. Please ask your question.
Speaker Change #133: Hey.
Cindy Wang: Do you plan to be here.
Speaker Change #135: What do you guys show them kind of Achy toolbar transition. So just your thoughts on why the Yahoo.
Speaker Change #135: Sure.
Cathy Bai: Cathy Bai ensure Coca question Jim.
Speaker Change #135: But the whole gang.
Of course, it can be found shaky Shanghai declination man now.
Speaker Change #137: Thank you.
Speaker Change #138: I didn't catch it.
Speaker Change #138: Uh huh.
Speaker Change #138: Yes.
Speaker Change #139: BRT tuition jingle jangle shutdown housekeeping, Josh and Marc.
Speaker Change #138: Should I take that back.
Speaker Change #140: Mitch and Vega breakdown MA now.
Speaker Change #140: Hi, Josh at ball, Joshua <unk> initiation of Hawkeye target.
Speaker Change #140: No what I'm quite a fine shot with <unk>.
Mike Mothball: Thanks, Mike Mothball, giving me the chance to ask questions. So I have two questions first one is we see the puppy that won't hit in this quarter.
That loss provision that you called out the reason why I bought that allow one as far as receivables from Akamai and <unk> following treatment with clients and the possibility of write that Bobby.
Mike Mothball: Bobby.
Speaker Change #142: Such provision might happen the canyon in check.
Speaker Change #142: Second question and the.
Speaker Change #142: The second quarter, and you'll founded account correlates very nicely and Tien tsin.
Speaker Change #143: Regional breakdown and any new customer acquisition strategy adopted in this quarter.
Speaker Change #142: You.
Speaker Change #142: Oh.
Speaker Change #142: Acquaintance.
Peter Campbell: Hey, Peter Campbell.
Speaker Change #145: It's within the U S.
Speaker Change #146: Oh sure she thinks it does seem like that.
Speaker Change #146: So you see the one on one machine.
Speaker Change #146: Let's handle it I think it's a cheap.
Speaker Change #146: Now.
Speaker Change #147: I'm going to show a mea culpa juncture.
Speaker Change #147: In each industry shortly there kind of a shame no more J D.
Speaker Change #148: Clinton quotation of Colton Bean curd casual not fancy one policy behavior Chengguan Thunder excuse me, who don't you do a potential 90 anti Dunbar one policy.
Speaker Change #148: Thank you Joey good things.
Speaker Change #149: Kingston economy.
Speaker Change #150: Oh, yes, I argued or not until they seem the dignitary on OTT.
Speaker Change #151: But I'm.
Speaker Change #152: I'm not sure I'm quite sure.
Speaker Change #153: Honestly it was in Europe.
Speaker Change #153: Dr.
Speaker Change #154: GNC and 500 10-K cups on Shanghai should do you sit on it you can call now going through our amazing teams are now gone.
Speaker Change #154: Go with Apple changes, including the U <unk>.
Speaker Change #154: So I definitely don't see Tonight, so your toilet tissue dressing.
Speaker Change #154: Are you seeing if any at all.
Speaker Change #155: Oh, well machine thoughtful con, you'll actually see David Schindel hardly see you also as a way come through EMEA Chouinard Nalmefene clock now more E mail you can calculate your own dripping each willingly.
Speaker Change #156: And in some way like Watson tie, but generated only in Hong Kong.
Speaker Change #157: This impairment was linked to a Hong Kong stock flagging, a transaction business to be cautious before about was written off in the second quarter.
Unknown Executive: Ladies and Gentlemen, thank you for standing by and welcome to the UP Fintech Holding Ltd. Second quarter, 2024, earnings conference call. That design or participants are in a listen only mode.
Speaker Change #158: First of all we're taking this very seriously and doing everything possible to recover at a loss.
Speaker Change #158: We already signed a repayment agreement with the client and have the controlling shareholder I scattering Tau.
Unknown Executive: There will be a presentation followed by a question and answer session. I must advise you that this conference is being recorded today, August 30, 2024.
Speaker Change #158: However, it could be cautious the full amount was written off in the second quarter.
Aron Lee: I will now like to hand a conference over to your first speaker today, Mr. Aron Lee, the head of investor relations. Thank you. Please go ahead. Thank you, Desmond. Hello, everyone. And thank you for joining us for the call today, UP Fintech Holding Ltd. Second Quarter, 2024, earnings release, was distributed earlier today. And it's available on our IR website, and IR.Iigerup.com, as well as global news services.
Speaker Change #158: We do receive repayment in the future we will reverse this law prohibition when the payment is made.
Speaker Change #158: Secondly, last year before this incident happened.
Unknown Executive: On the call today, from UP Fintech, Mr. Wu Tianhua, Chairman and Chief Executive Officer, Mr. Zhang, Chief Financial Officer, Mr. Huang Lei.
Speaker Change #158: Already stopped our Hong Kong clash with its core business.
Speaker Change #158: With the market condition and the risk.
Speaker Change #159: This particular transaction continued because it was under contract.
Speaker Change #159: And finally <unk>.
Speaker Change #159: We had a thorough review of our risk procedures and existing stopped platinum transaction now.
Speaker Change #159: No there are no outstanding start pledging.
Casualty score transactions, using Hong Kong stock as collateral if anymore.
Tianhua Wu: CEO of U.S. Tiger Securities and Mr. Kenny Zhao, our Financial Controller. Mr. Wu will give an overview of our business operations and discuss corporate highlights.
Speaker Change #159: But if you could break it up.
Speaker Change #159: <unk> as soon as I know you called uncle.
Zhang: Mr. Zhang will then discuss our financial results.
Speaker Change #159: So Toyota is slightly shambolic itchy.
Unknown Executive: They will both be available to answer your questions during the Q&A session that follows their remarks.
Speaker Change #159: Sure the elaboration on the true.
Speaker Change #159: Our teachers oncological make well show them. So you know on Saturday excuse me if I missed.
Unknown Executive: Now, let me cover the safe harbor. The statements will probably be about to make content for looking statements during the meaning of the U.S. Private Security's Education Reform Act of 1995. A number of factors could cause actual results to differ materially from those content and annual for-looking statements. For more information about factors that could cause actual results to materially differ from those in-for-looking statements, please report to our form 6K furnished today, August 30, 2024, and our annual report on form 20th, February 22, 2024. We undertake no obligations to update annual for-looking statements except as required under absentable law.
Speaker Change #159: Now let me go ahead and come down.
Akshay: Thank you Akshay do you want to call me and she doesn't plus call. It yes.
Akshay: Yes sure.
Speaker Change #161: Mm three culture.
Speaker Change #162: Last one from me on the call and ship.
Speaker Change #163: Joe Shan guarantees that would take them eight Congo shop, those numbers going to be upset.
Speaker Change #164: You didn't want to argue it sends out a ball corp, and powerful it holds up.
Speaker Change #165: I mean, the total Sean so youll be selling an assumption about Mr. Doyle.
Speaker Change #166: Oh gosh, how much have you seen anything he will show you our pumping neither one b syndrome.
Speaker Change #167: So you have many digital with established I would say on the ship and you have chunky.
Tianhua Wu: 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 the remarks.
Speaker Change #166: Sure.
Speaker Change #168: So did you have I don't want to go contract.
Speaker Change #169: Now Dr. Julia Shannon's Housewarming, usually you wouldn't cook.
Speaker Change #169: No change in our body.
Speaker Change #171: Now, let's see how do you want to call she's on.
Speaker Change #169: Yes.
Speaker Change #169: And then dosing cohort.
Speaker Change #172: So you can send me an umbrella.
Speaker Change #172: Oh, okay.
Speaker Change #174: I felt that other central without so you don't think I'm in a concept.
Speaker Change #175: So I'm kind of downtown Seattle, Chicago, Washington, It was shortly.
David Schindel: Sure David telling yeah.
Tianhua Wu: Hello. [inaudible] In the second quarter, the U.S, stock market continued to perform well and overall market activity further improved compared to the first quarter. This led to a sequential increase in current volume across stocks, options, and futures. With commission income reaching $34.1 million US dollars, up 22.7% quarter per quarter and 54.9% year over year. The second highest quarterly commission revenue in our operating history. Our total revenue for the second quarter was $87.4 million US dollars and all-time high and reflected a quarter increase of 10.8% and year over year increase of 32.4%.
David Schindel: Sure.
David Schindel: So it won't be that often.
Speaker Change #177: So in the second quarter about 65% of our new family of clients came from Singapore and Southeast Asia.
Speaker Change #177: About 15% from wholesale market and about 10% each from Australia, and New Zealand region and the U S.
Speaker Change #177: We are quite pleased with this result.
Speaker Change #178: <unk> seen the last can call her in terms of the number of.
Quarterly new Fangled accounts, we believe there are a couple of reasons for this growth first of all I'm the U S and Hong Kong stock market did well in the second quarter. So we increased our market expanding like on branding advertisement, but by about 45% quarter over quarter, which have both new yorker numbers across different mark.
Right.
Speaker Change #178: And secondly, we also saw a big boost from new products were launched Singapore in the fourth quarter like the CAGR, both debit card at a contract Trillium features the popularity of based functions among local clientele exceeded our expectation.
Speaker Change #178: At the end of August we already have around 10000, Pedro both cardholder, mostly newfangled users from the second quarter.
Speaker Change #178: In the past three months, Colorado Trillium feature along also made meaningful contribution on tariffs and come Commission income. So we are seeing a significant growth in not only just give some numbers, but also trading volume and commission income Singapore corporate colder on a year over year.
Yeah.
Speaker Change #178: Yeah.
Speaker Change #179: Thank you for the questions one moment for the next question.
Speaker Change #179: Okay.
Speaker Change #179: Yeah.
Our next question comes from Judy Chung from Citi. Please go ahead.
Judy Chung: Well, that's exactly what I think.
Speaker Change #181: Even with all those questions.
Speaker Change #182: Jungle thereabout.
Speaker Change #182:
Speaker Change #183: What do you put those all go well so lots of times that you report Oh, Yeah, Farquhar Toronto since you're on the G E.
Speaker Change #184: Uh huh.
Tianhua Wu: In both online, our gap and non-gap net income attributable to UP Fintech was $2.6 million US dollars and $5.2 million US dollars respectively. The bottom line was negatively impacted by a lost provision of $13.2 million US dollars relating to a case of Hong Kong stock pledging and restore. Since 2023, our company had already stocked similar Hong Kong equity stock pledging and restore in response to market condition and risk. And there is no such risk exposure among excessive users anymore.
Speaker Change #185: Oh, My God, you're seeing.
Speaker Change #185: Sure.
Speaker Change #185: No two o'clock a bushel.
Speaker Change #185: Well that's all there.
Speaker Change #185: Yeah.
So that's about it.
Speaker Change #185: Well, maybe I'll yeah.
Speaker Change #185: Yeah.
Speaker Change #185: Hello, Glenn if I may.
Speaker Change #186: Not downtown.
Speaker Change #186: Right.
Speaker Change #187: Yeah, well let.
Speaker Change #188: Let me translate my two questions.
Speaker Change #188: And so the first question.
Speaker Change #189: On the development.
Speaker Change #190: Development in Hong Kong market, how is the progress in the Hong Kong market developments.
Tianhua Wu: If excluding the impact of the lost provision, our free tax profit for the quarter will be $19.4 million US dollars, reflecting a 13.9% increase of the quarter and 8.3% increase year over year. [inaudible] in addition, in addition In the second quarter, we added 48,900 newly funded accounts, representing a 69% sequential increase and a 68% increase year-over-year, single-who-and-a-soft East Asian regions with primary contributors. In the first half of this year, we added a total of 77,700 newly funded accounts, and we added a confident of delivering our annual guidance required at least 3,000 newly funded accounts in 2024.
Speaker Change #190: Including the traditional brokerage business and the company is a virtual currency.
Speaker Change #191: That's now supports the retail and the PR Treaty and what are the plans for deploying this disease such as pricing customer acquisition strategy and then what do you think.
Speaker Change #191: So.
That's up from some of the managers and second question.
Speaker Change #192: Most of the companies are wealth management is progressing and what is our current scale and.
Speaker Change #193: Based on the Florida offerings. Thanks.
Speaker Change #192: Yeah.
Speaker Change #192: Yeah.
Speaker Change #192: Although Julie Wilson I believe done a deal in Cuba.
Speaker Change #194: Samsung's record it seems that the just short.
Speaker Change #195: Since the write down at all but do you think that you've got much to do something about it either.
Speaker Change #196: So it sounds.
Speaker Change #197: Sounds like what you're able to not just for sure.
Speaker Change #198: Listen gentlemen.
Speaker Change #199: That's how old are eating 118.
Speaker Change #199: Now how did you do a nice young guy that suits you come up with recording the cheap closer to uphold zone B junior not since.
Speaker Change #199: Yeah.
Speaker Change #200: On the Cobra.
Speaker Change #200: Okay.
Speaker Change #201: I should say.
Jason: Yes, Jason.
Jason: So you'll.
Jason: You'll see it come back with a graduation, you go back to the system.
Good.
Chip: Chip I'm not sure. That's also not logical scenario, so I won't be quite.
Chip: John that's a chunk of it you talked about sort of Oklahoma hold up.
Speaker Change #204: People that you have never seen the whole genome when I talk about it she's here at Sirius.
Speaker Change #205: It sounds like you pulled out the paperwork.
Speaker Change #206: A couple of it just highlights that articulate jingles and Joey Chaouchi, Jonathan Hudson Mark to market.
Speaker Change #207: Do you have a cobalt system.
Speaker Change #207: Sunday.
Speaker Change #208: New hope is a car that you see jumps again, John Woodall them judiciously.
Speaker Change #209: Could be I think a major asset class not doing my job.
Speaker Change #209: Okay, that's really the trace elements that show the champions of the Altra deal.
Speaker Change #209: Davidson horizontal please I'll come to you Joe.
Speaker Change #209: Okay.
Speaker Change #210: And someday click goes up quite a bit since that since you're the corridor.
Speaker Change #211: Uh huh problems the whole nuts, a gmail communists, we'll be help highlight since you've been a license contribution raising children understand how would you sort of just you do it if I have missed.
Speaker Change #212: The whole day, she had dozens of optics.
Speaker Change #213: The whole a woman she says that we essentially either with the gentleman that critical care they'll do it either so novel material horseshoe not yet from that debate.
Tianhua Wu: In terms of client assets, just not assets inflow remains strong in the second quarter, amounted to $1.7 billion USD, primarily from the Singapore and Hong Kong market. Spused by a 3.6 billion USD mark-to-market gain, that total client assets by the end of the second quarter, increased by 16% quarter-over-quarter, and went with a 21% year-over-year to $38.2 billion USD at all-time high. We are glad to see seven consecutive quarterly growth in total client assets with new highs in the past three quarters.
Speaker Change #214: So if you look at the show Washington.
Speaker Change #215: That sounds good.
Speaker Change #216: Just your thoughts on what makes the camping world critical achieve hopefully you would you have been growing so quickly.
Speaker Change #217: So how do you sort of you since you know you can check off all those things.
Speaker Change #218: Since you made your copano.
Speaker Change #219: So congrats with coupon rates don't seem to have got the whole ambition.
Jeff: Jeff I don't call it quits with chocolate Lee you guys issued.
Speaker Change #221: Obviously, neogen coatings and I say go home basis, you're on kind of what's your how this exactly.
Tianhua Wu: Notably, client assets from the Hong Kong market doubled quarter-over-quarter. Highlight our competency in attracting high-quality users in markets like Singapore and Hong Kong through superior product clearance and local knowledge, also underscores the significant growth potential in the markets we currently focus on. [inaudible] In the second quarter, we continue to enhance our product offerings by introducing a range of localized features. In August, we lost two key functionalities, Hong Kong stock options and short-selling for Hong Kong stocks.
Jeff: Exactly.
Pinto the Cortina acquisition.
Now what does that mean, you'll find each other so.
Regards to the traditional brokerage business, we are quite pleased with our progress in Hong Kong. So in the second quarter average mid asking some of our newly acquired clients, What's our 60000 U S dollar.
Jeff: Hong Kong market also saw the highest group was up with doubled compared to the.
Jeff: Fourth quarter of last year.
Jeff: The market was a little bit more activity in the second quarter. So we kept the rest of this backdrop by increasing local partnership at advertising.
Jeff: As a result of over seven.
Jeff: 7000, and Youll find a user onboarding.
Jeff: Second quarter, which is two five times the number from the previous quarter.
Speaker Change #222: And then in terms of kind of assay, we saw robust that etsy clearly the second quarter and it was I'm, saying, that's extreme four consecutive weeks off gains or asset under custody somehow come back by the end of second quarter doubled sequentially.
Speaker Change #222: When it comes to a virtual assay business are a type of license was up a bit.
Speaker Change #223: <unk> Oh, sorry back in January to collect critical trading for professional investors.
Speaker Change #223: You recall that is an approval to offer this critical treatment for retail investors.
Speaker Change #223: That's a critical campaign for professional investors back into you made the campaign was very successful but end of June we're already topped with RPI users.
Speaker Change #223: Our platform.
Tianhua Wu: Now we offer all major trading products for Hong Kong market, boosting our competitiveness and appeal to local users. Looking ahead, we also plan to introduce the combo-option strategy feature for Hong Kong stock options. Additionally, since our Hong Kong subsidiary officially uplifted its tax-one license to include virtual asset dealing service for professional investors in January of this year, we received a proof in June to expand this license to retail investors in Hong Kong.
Speaker Change #223: So far we offer the most competitive pricing Hong Kong in terms of spot clinical treatment.
Speaker Change #223: Zero Commission class platform to treat a spot for Crystal Castle.
Speaker Change #223: Yes.
Speaker Change #224: At this time <unk> no further questions from the line allow me to hand, the call back to management for closing.
Speaker Change #223: Yeah.
Speaker Change #225: Operator, there is one more question haven't be honest hard.
Speaker Change #225: Please continue.
Tianhua Wu: We offer zero commission and no platform fee for both professional investors and Hong Kong retail clients to treat both cryptocurrency and tiger plants, and supporting real-time settlement of virtual asset transaction US Dollar. This provides user with a truly secure, convenient and cost-effective global trading experience.
Glenn: Oh, Glenn Typhoon Glenda Yogurts inkjet PRT.
Glenn: CRT the woman does knee codes at times.
Glenn: So it will show the oceana.
Glenn: <unk> Shandong Fund me traditional LNG battleships order can be the same job.
Glenn: Additionally, a team which you shouldn't.
Glenn: That's right.
Glenn: Susan Andrew can diagnose hunting slowly inching up I mean, essentially shop, now which are neither the Sudan Central London.
Glenn: That's why we are making which is without PDI, Egypt Chin now on Monday that we can digest.
Glenn: And in fact Shan Shan the Chinese economy.
Glenn: <unk> maintained.
Speaker Change #227: B, how it can be.
Speaker Change #228: Colorado, Utah.
The article might be tired, she still hold as Sean Kelly.
Unknown Executive: [inaudible] Thanks, Tianhua and Aron.
Speaker Change #228: Oh sure no genetic diseases.
Speaker Change #228: Joey.
Speaker Change #228: Yeah.
Speaker Change #229: Yeah, I'm not sure I caught.
Speaker Change #229: If you don't maybe I'm for BTG telco passenger already are.
Speaker Change #230: Gumby Horae gene how hall in this city.
Speaker Change #230: <unk> zinc towell I'm, just send me an email at Greenway.
Speaker Change #230: Cosmos I'm convinced rating does she didn't guarani towards what we thought.
Josh: Sure Josh.
Speaker Change #232: How long are you willing to use that towards the PMA.
Speaker Change #233: Total domiciled allocation.
Speaker Change #234: Now, let me authority to go to Ash Impoundment, Joan Tong, Taiwan, and Korea should calm thoughtful when gendron sheet cause inbound retail trenches, maybe we'll go to <unk> and.
Speaker Change #233: How many more clients.
Speaker Change #235: Who can thump in the trial.
Speaker Change #235: They have frequent in Tempe.
Speaker Change #235: So now you can put us in a patriot.
Speaker Change #236: In the second quarter, our wealth management business saw strong growth with great access and user number increased by over 20% quarter over quarter and around 50% year over year platform penetration also improved no amount of new funded clients in the second quarter with a 30 of them target using our hydro boat product.
Speaker Change #236: We also made some upgrades to the Tiger boat in the second quarter before the U S stock market flips to a deep roster of thinking about a may 28th tug of war had already implemented T plus era functionality across all licenses.
Speaker Change #237: In U S dollar Hong Kong dollar and Singapore dollar this allows customers to instantly convert their balance into buying power and participant in foster market really.
Speaker Change #237: The underlying Tiger, we'll also continue to perform well with average seven day annualized during the second quarter exceeding five 2% for U S dollar money market fund.
Speaker Change #237: And four 2% for Hong Kong dollar foreign market, I'm, sorry, 6% for Singapore dollar one microphone.
Speaker Change #237: Providing investors with returns above the market average for cash management.
Speaker Change #237: Looking back over the past two years after interest rate hike cycle, our wealth management business has seen significant growth in both product categories and.
Speaker Change #237: In the second quarter, we have most of our wealth management business to the home interface off our app, making it easier for users to access a variety of asset management products.
Speaker Change #238: It includes Mark to market fund stable income products top performing fund ETF U S people.
Speaker Change #238: And more users with different risk appetites diversified from pure equity investment.
Speaker Change #238: Thank you Jasmine if there any other questions.
Zhang: Let me go through our financial performance for the second quarter. All numbers are in US dollar. Market was more active in the second quarter versus the first quarter. Trading commission reached 34.1 million. Increased 23% quarter over quarter and 55% year over year. Cash equity take rate was 6.7 pips this quarter. Study increased from 6.3 pips of last quarter. Raising commission revenue about 65% comes from cash equity. 30% from options and the rest from futures and other products.
Speaker Change #239: At this time no more questions. Please continue alright.
Speaker Change #239: Okay.
Speaker Change #239: Okay.
Speaker Change #240: I would like to thank everyone for joining our call today and now closing the call on behalf of the management team here at Tiger.
Speaker Change #241: Are you participating 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 bye bye.
Speaker Change #242: Ladies and gentlemen that concludes our conference for today. Thank you for your participation you may now disconnect your lines.
Speaker Change #243: Thank you.
Speaker Change #243: Yeah.
Speaker Change #243: Yeah.
Speaker Change #243: [music].
Okay.
Zhang: Now on to cost. Interest expense was 13.6 million. Increased by 30% from the same quarter of last year. Increased by 30%. Increased by 30% from the same quarter. [inaudible] As we saw market background. As we saw market background.
Speaker Change #243: Yes.
Speaker Change #243: [music].
Unknown Executive: As a reminder, if you'd like to ask questions, please press star 11 and wait for a name to be announced. The cancel your request, please press star 11 again. One moment for the first question.
You Fan: Our first question comes from the line of you, Fan, from CICC. Please go ahead. I will quickly translate my question. This is you, Fan, from CICC. I have two questions here. The first one is that we see the US stock market has been quite volatile in others. And the Q3 has already been underway for two months.
Unknown Executive: Can you show some drone rates over the past two months, such as the number of new users, the Chinese client asset, and also the impact on the financial performance? Seven, if we answer a rate-cutting cycle, how might Tyler adjust your business? And what kind of impact say 25 basis point rate cut would have on the company's interest income? Thank you.
Unknown Executive: I will answer the first question. In terms of current asset, the China net asset inflow was still strong in the first two months of the third quarter. And the number of newly funded users also continued the rapid growth as we saw in the second quarter. If we look at numbers in July, we saw the highest single months revenue in our operating history. While August is not yet completed, clicking volume in August so far is also very active. September is a bit uncertain due to factors like US election and Fed interest rate decision. But overall, we are quite satisfied with how Q3 has been shipped up so far.
Unknown Executive: The second question I will answer is that every year, a lot of people will have some negative impact on the company's interests. But we also think that the return of the market will have a rise. It will bring more sales and energy income. In this way, we will focus more on the return of the market and the impact of the market in the future. But we are looking for a balance between the industry and the industry.
Unknown Executive: If it is 25-year-old, we will focus on the investment of the industry and the profit of the company. We think that the profit of the company is probably in one person. [inaudible] If the rate is 25% next month, our calculation based on our second quarter budget scale and the interest income, such as the lifting impact on quarter revenue for quarter would be about 1%. Thank you. Operator, please move on to the next question. One moment for the next question.
Cindy Wang: Our next question comes from Cindy Wang from China Renaissance. Please ask your question. [inaudible] In the end, the whole company was very close to us, and we were able to fully recover the trust.
Unknown Executive: In the past, we had already signed the contract with the agency, and signed the agreement with the agency, and signed the contract with the agency, and the agency, and the agency, and the agency, and the agency. [inaudible] In the second quarter, about 65% of our new funding glides came from Singapore and Southeast Asia, around 15% from Hong Kong market and about 10% each from Australia, New Zealand, and the US. We are quite pleased with this result, which are the best we've seen in the last ten quarters in terms of the number of, you know, quarterly new funding accounts.
Unknown Executive: We believe there are a couple of reasons for this growth. First of all, the US and Hong Kong stock market did well in the second quarter, so we increased our market spending, like I'm branding and advertisements, by about 45% quarter of a quarter, which have boosts new user numbers across different markets. And secondly, we also saw a big boost from new products we launched in Singapore in the first quarter, like the Tigerboost debit card and counter trading features.
Unknown Executive: The popularity of these functions that Mount Locok Lentel exceeded our expectations. But at the end of August, we already have around 10,000 Tigerboost card holders, mostly new funded users from the second quarter. Plus, in the past three months, counter trading features along also made meaningful contribution on those and commission income. So we are seeing significant growth in not only just user numbers, but also trading volume and commission income in Singapore, quarter quarter and year.
Unknown Executive: Thank you. Thank you for the questions. One moment for the next question.
Zhang: Our next question comes on to the Zhang from city. Please go ahead. Thank you.
Unknown Executive: Let me translate my two questions. So the first question, regardless of development in Hong Kong market, how is the progress in the Hong Kong market development, including the traditional brokerage business and the company's virtual currency as a business that now supports retail and the PI trading and all that the plans for deploying this business, such as pricing, customization strategy, and what is the expected result. You know, from the management.
Unknown Executive: And second question is, how is the company's wealth management business progressing and what is the current skill and any updates on the product off? Please. Thanks. Hello, Judy. I'm back to the first question. This is the feeling of Hong Kong soon. I would like to say that we are very satisfied with the growth of the economy. First of all, I would like to say that Hong Kong is the most high-end region in Hong Kong.
Unknown Executive: At the same time, UP Fintech has more than last year. In this way, Hong Kong's customer quality is also very good. It is also said that we must be very happy with the production and the growth of the economy. At the same time, the economy has returned. We are going back to the market environment and we are going to work together with Hong Kong. At the same time, Hong Kong's growth of the economy has surpassed 7,000 people.
Unknown Executive: It has surpassed more than 2 million people. The production of the customer is also a strong economy in the economy. At the same time, Hong Kong has brought the market again. The production of the customer quality is also reflected. In terms of the growth of the economy, we have talked about the growth of the economy. We think that the growth of the economy will be a major asset class. [inaudible] In terms of virtual asset business, our type-on license was operated back in June, sorry, back in January to provide critical trading for professional investors.
Unknown Executive: In June, we got additional approval to offer critical trading for retail investors. We launched a critical campaign for professional investors back in June. In May, the campaign was very successful. By end of June, we already doubled our PI users on our platform. So far, we offer the most competitive pricing in Hong Kong in terms of sparkly to trading. Our pricing is zero commission plus zero platform fee to treat the sparkly to fiscal on our platform.
Unknown Executive: At this time, there are no further questions from the line, allow me to have a call back to management for closing. Upgrader, there is one more question, haven't be answered. I beg your pardon, please continue. [inaudible] Supporting US dollar, Hong Kong dollar, and Singapore dollar. This allowed customers to instantly convert their balance into buying power and participant in foster market trading. The underlying asset of Tiger World also continues to perform well, with average 7-day annualized yields during the second quarter exceeding 5.2% for US dollar market fund, and 4.2% for Hong Kong dollar market fund, and 3.6% for Singapore dollar market fund, providing investor which returns above the market average for cash management.
Unknown Executive: So looking back over the past two years of the interest rate high-clackle, our web management business has seen significant growth in both product categories and AUM. In the second quarter, we have moved our web management business to the home interface of our app, making it easier for users to access a variety of other management products. This includes money market funds, stable income products, top-for-forming funds, ETFs, USD bonds, FCNs, and more. For users with different risks advertised, diversified from pure equity investment. Thank you. Desmond, is there any other questions? At this time, there are no more questions. Please continue.
Unknown Executive: I would like to thank everyone for joining our call today. I'm now closing the call on behalf of the management team at Tiger. We do appreciate you participating in today's call. If you have any questions, please switch out to our investment region team. This concludes the call, and thank you very much. Bye-bye. Ladies and gentlemen, that concludes our conference for today. Thank you for your participation. See you in the next video lines. Thank you. Bye-bye.