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    You Fan • CICC

    You Fan's questions to UP Fintech Holding Ltd (TIGR) leadership

    You Fan's questions to UP Fintech Holding Ltd (TIGR) leadership • Q4 2024

    Question

    You Fan from CICC asked about the company's cryptocurrency strategy, specifically how the newly acquired VATP license in Hong Kong will contribute to growth and for more details on crypto development in Q4. He also questioned why interest income grew at a double-digit pace, outpacing interest expense, while the overall margin financing and securities lending balance remained flat.

    Answer

    Chairman and CEO Tianhua Wu explained that the VATP license officially allows the company to offer spot trading and custody for major cryptocurrencies in Hong Kong, positioning it as a bridge between traditional finance and Web3. He noted that the Hong Kong business unit achieved breakeven in Q4, with client assets growing nearly 50% QoQ. Regarding interest income, Mr. Wu clarified that although the total margin balance was flat, the mix shifted towards higher-yield segments like margin and hard-to-borrow securities lending. This, combined with better interest rates negotiated with banks on idle cash and increased demand for security lending, drove the significant outperformance of interest income over expense.

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    You Fan's questions to UP Fintech Holding Ltd (TIGR) leadership • Q3 2024

    Question

    You Fan requested more details on business progress in the Hong Kong market, including customer acquisition and trading volume, and asked for an update on the wealth management business with specific data on AUM and client numbers.

    Answer

    CFO John Zeng stated that Hong Kong contributed over 20,000 new funded accounts YTD, with these clients having the highest average asset value. He noted Hong Kong's October trading volume exceeded the entire third quarter's volume. Executive Aron Lee added that wealth management AUM grew over 40% QoQ to exceed $1 billion, with about 30% of new Q3 users utilizing these services. The Hong Kong wealth management business saw its AUM double quarter-over-quarter.

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    You Fan's questions to Futu Holdings Ltd (FUTU) leadership

    You Fan's questions to Futu Holdings Ltd (FUTU) leadership • Q4 2024

    Question

    You Fan from CICC asked for a breakdown of Q4 AUM between net asset inflow and market-to-market impact, as well as the regional sources of client assets. He also questioned the impact of recent Hong Kong IPO activity on the income statement and client growth.

    Answer

    Chief Financial Officer Arthur Chen clarified that the market-to-market impact in Q4 was negative, meaning net asset inflow was larger than the quarter's net AUM growth, with 24% of inflow from Greater China. He stated that Hong Kong IPOs contribute a low-single-digit percentage to total revenue, but the new FINI system is a net positive for business by enhancing client engagement and market liquidity.

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    You Fan's questions to Futu Holdings Ltd (FUTU) leadership • Q3 2024

    Question

    You Fan requested a breakdown of the quarter's AUM growth between net asset inflows and market appreciation, along with a regional breakdown of client assets. Additionally, he asked for a breakdown of interest income and commentary on the potential impact of interest rate cuts.

    Answer

    Executive Daniel Yuan stated that over half of the AUM growth was from market appreciation, with net asset inflows remaining robust. Hong Kong contributed the majority of inflows, followed by Singapore. CFO Arthur Chen noted the interest income breakdown was similar to Q2, with idle cash interest comprising 40-45%. He added that an increase in client idle cash from profit-taking partially offset the negative impact of rate cuts.

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