UP Fintech Holding Limited

Thank you for standing by. Welcome to the Uptin Tech Holdings Limited, 3rd quarter, 2025, earnings conference call. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. I must advise you that this conference is being recorded today, December 4th, 2025. I would now like to hand the conference over to your first speaker today, Mr. Aaron Lee, the Head of Investor Relations. Thank you. Please go ahead.

Thank you, our Twitter. Hello, everyone. We appreciate you joining us today for our Fintech Coding Limited's third quarter 2025 earnings call. The earnings relief was distributed earlier today and is available on our Investor Relations website at ir.icigerup.com and through Globe Newsware. On the call today with us are Mr. Wu Tianhua, Chairman and Chief Executive Officer, Mr. Zhang Zeng, Chief Financial Officer, Mr. Huang Lei, CEO of U.S. Tiger Securities, and Mr. Kenny Zhao, our financial controller. Mr. Wu will provide an overview of our business operations and key corporate highlights, followed by Mr. Zeng will discuss our financial results. They will both be available to answer your questions during the Q&A session afterwards. Before we begin, I'd like to address the safe harbor statement. The upcoming remarks will contain forward-looking statements. as defined by the U.S. Private Security Selection Reform Act of 1995. Actual results differ materially due to various factors. For more details on these factors, please refer to our Form 6-K first date, December 4th, 2025, and our annual report on Form 20F, submitted on April 23rd, 2025. We are not obligated to update any forwarding statements unless required by law. Now, it's my pleasure to introduce our Chairman and CEO, Mr. Wu, who will begin his remarks in Chinese, followed by an English translation. Mr. Wu, please proceed.

大家好,非常感谢各位参加老虎国际2025年第三季度财报发布会。 Hello, everyone.

Thank you for joining the Tiger Brokers Third Quarter 2025 Earnings Conference Call.

第三季度,公司再次取得了亮眼的业绩表现。 Each business income and profit-making ability maintain a fast-growing trend, and again create a historical high. The overall income reached $17,520 million, which rose by 73.3%, and rose by 26.3%. In terms of profit, we insist on the priority strategy of user quality and product experience. The further improvement of ROI is the foundation for the further improvement of profit-making ability. In the third quarter, the company will take pictures to achieve profit. In the third quarter, Tiger once again achieved impressive performance.

with all revenue segments and profits showing encouraging growth and reaching new historic highs. Our total revenue reached $175.2 million, representing a year-over-year increase of 73.3% and a quarter-over-quarter increase of 26.3%. They have maintained our strategy of prioritizing user quality and product experience, which has further improved our ROI and laid down a solid foundation for ongoing profit growth. All of our licensed entities achieved profitability in the third quarter, resulting in a net income attributable to UpinTech of $53.8 million, up 30% from the previous quarter and three times the same quarter last year. Our non-GAAP net profit reached $57 million, growing 28.2% quarter-by-quarter and 2.8 times year-over-year. Non-GAAP net profit hit new historical highs and has maintained double-digit quarter-to-quarter growth for five consecutive quarters.

第三季度,新增入金用户三万一千五百人,香港和新加坡为主要的贡献市场。 今年前三季度,累计新增入金用户十三万两千两百人。 截至到目前,我们已经提前实现了全年十五万新增入金用户的年度目标。 As of the end of the third quarter, the number of new users has reached 1,224,000, which is 18.5% of the total growth. We are very happy to see that the company's expansion in the Hong Kong market has further gained the recognition and trust of local users. In the third quarter, the contribution of new users from the Hong Kong market exceeded 30% for the first time, making Hong Kong an important growth engine other than the Singapore market. At the same time, The quality of users in the Hong Kong market remains at a stable level. The average income of new users in the current quarter has also continued for three consecutive quarters, maintaining a high of about $30,000. In addition, since this year, the company has continued to optimize its goods and strategy based on IOI considerations. The Hong Kong market has achieved significant results. In the third quarter, the average income of local new users in the current quarter exceeded $60,000. This has greatly broken the historical record. At the same time,

In the third quarter, we added 31,500 new funded accounts, with Singapore and Hong Kong being the primary contributing markets. In the first three quarters of this year, we have acquired 132,200 new funded accounts. The total number of funded accounts reached 1,224,200. representing a 18.5% year-over-year increase. As of today, we've already achieved our annual guidance of acquiring 150,000 newly funded accounts. In addition, we are glad to see better brand recognition from Hong Kong users. In the third quarter, for the first time, Hong Kong accounted for over 30% of our quarterly new funded users, becoming a key growth engine alongside Singapore. More importantly, User quality in Hong Kong remains strong, with average net asset inflow for newly acquired clients holding around US$30,000 for three consecutive quarters. Meanwhile, ROI-driven acquisition strategy delivered standout results in Singapore. The average net asset inflow for newly acquired clients in the third quarter surpassed US$60,000, a historical breakthrough, and leased group average this quarter to above US$30,000 for the first time.

In terms of commercial nature, the oil and gas industry has always been the head of the stock market, with retail users as the main contribution. The uptrend brought by the rise of the stock market and the rise of the stock market has created a record high of $6.1 billion, with a net profit of 17.3%, a net profit of 49.7%, and a growth of 12 consecutive seasons. In the third quarter, Regarding total client assets, net asset inflow remains robust, mainly driven by retail investors.

Coupled with the market gain, total client assets reach a new record of US$61 billion. up 17.3% quarter-over-quarter and 49.7% year-over-year, marking 12 consecutive quarters of growth. In the third quarter, all the overseas markets delivered double-digit quarter-over-quarter growth above 20% in client assets, with Hong Kong and the U.S. increasing by more than 60% and 50% respectively.

第三季度,老五国际持续优化产品功能, 让全球投资变得更便捷,更普惠。 As a tech broker in Singapore, we continue to improve the experience of local investors. In order to allow more local investors to easily participate in the stock market, Laowu Singapore has exempted the new exchange registration fee of five trading accounts and lowered the cost of long-term holders. In Hong Kong, we continue to enrich the product system. The third quarter of the third quarter of the third quarter of the third quarter of the third quarter of the In September this year, we launched a virtual currency transaction in New Zealand to provide local users with mainstream virtual currency investment services such as Bitcoin and Ethereum, and our platform has further optimized the related functions of encrypted currencies in the third quarter, and added relevant feature data such as market insight, holding companies, and so on, to help users investigate investment opportunities and precise investment decisions. Smart投資助手, he is an AI, using heat to quickly rise, In the third quarter, we continue to refine our product features to make global investing more accessible and convenient.

As a leading tech-driven brokerage in Singapore, we constantly enhance the user experience for local investors. To enable more local investors to easily participate in stock market, Tiger Singapore has waived the Singapore Exchange quarterly custodian fee for accounts with no trace, thereby reducing the holding costs for long-term investors. In Hong Kong, we have expanded our product offerings by introducing Japanese market derivative services, such as Nikkei Futures, For the first time in the third quarter, further solidifying our global multi-asset strategy. Additionally, in September, we launched cryptocurrency trading in New Zealand, providing local users with investment services in major cryptocurrency like Bitcoin and Ethereum. During the third quarter, TIDR platform enhanced cryptocurrency-related features by adding unique data such as macro market insights and holdings information for companies. assisting users for recognizing investment opportunities and making better investment decisions. Tiger AI has seen a rapid increase in usage, with user numbers growing nearly five-fold year-over-year and the number of conversations increasing tenfold. Meanwhile, the intelligent investment analysis tool, Trading Friend AI, provides real-time portfolio analysis and market insights for asset management business. Helping investment advisors enhance their analysis efficiency and decision-making quality.

老虎国际的2B业务保持迅猛发展势头。 助理公司的其他业务收入环比翻倍。 创下了三季度历史新高。 投行业务策。 第三季度我们呈销了五个美股IPO项目。 老虎军作为唯一的主成要商。 including Bining Zhaofang and Yimutian, etc. In addition, in the third quarter, we sold five Hong Kong stock IPO projects, as well as five Hong Kong stock public growth projects, including Jijijia Technology and BOTS. The IPO market continues to heat up, helping the entire company's IPO acquisition business continue to maintain a high-speed increase in the third quarter, with 39.3% increase in the number of acquisitions, and 121.5% increase in the number of acquisitions. Our 2B business also maintains strong momentum, significantly boosting other revenue by doubling them quarter-by-quarter, achieving a historic high for a single quarter.

In the third quarter, we underwrote five U.S. schedules, all serving as the sole bookrunners. including Link Home and Himutian. Additionally, we underwrote five Hong Kong IPOs and one Hong Kong public follow-on offering, including Gig Plus and both G-PIN. With the IPO market being active, supported robust growth in our IPO subscription business, with the number of subscribers increasing by 39.3% quarter per quarter and the subscription amount surging by 121.5%. reflecting our platform's enhanced underwriting capability. In our ease of business, we added 46 new clients in the first quarter, bringing the total to 709, a year-over-year increase of 19%. Now I'd like to invite our CFO Zhang to go over our financials.

Great. Senator Temple and Aaron, let me go through our financial performance for the third quarter. All numbers are in U.S. dollars. We saw encouraging growth in all revenue components this quarter. Commission income was $72.9 million, increased 77% year-over-year, and 13% quarter-over-quarter. Interest income was $73.2 million, increased 53% year-over-year, and 25% quarter-over-quarter, in line with our sequential growth in margin and security lending balance. Total revenue reached $175.2 million, up 73% year-over-year, and 26% quarter-over-quarter. Cash equity take rate was 7.1 bps this quarter, increased from 6.4 bps of last quarter. The uptick in cash equity take rate was mainly due to the increased trading volume of a few low-priced U.S. stock during the third quarter, as we charge commission per share for U.S. stock trading. Within commission revenue, about 67% comes from cash equities, 29% from options, and the rest from futures and other products. Now on to cost. Interest expense was $21.9 million, increased 40% year-over-year, in light of the increase in interest income from margin and securities lending business. Execution and clearing expense were $4.5 million, increased 27% from the same period of last year, in light of the increase in commission and trading volume. Employee compensation and benefits expense were $47.2 million, an increase of 64% year-over-year, due to the headcount increase to strengthen overseas growth and R&D. Occupancy depreciation and amortization expense were $2.8 million, increased 28% year-over-year, due to the increase in office space and relevant fiscal improvements. Communication and market data expense were $11.8 million, an increase of 21% year-over-year, due to the increase in user base and IT related services fees. Marketing expense were 12.9 million this quarter, increased 57% year over year, as we beef up user acquisition, particularly in Singapore and Hong Kong markets. General administrative expense were 10.3 million, an increase of 49% year over year, due to an increase in professional service fees. Total operating costs were 89.4 million, an increase of 51% from the same quarter of last year. As a result, Fontana increased on both GAAP and non-GAAP basis. GAAP daily income were 53.8 million, up 30% quarter over quarter, and three times of last year amount. Non-GAAP-led income were 57 million, a 28% increase quarter-over-quarter, and 2.8 times the same quarter of last year. The non-GAAP-led profit margin further expanded to 33% in the third quarter. Now I have concluded our presentation. Operator, please open the line for Q&A. Thanks.

Thank you. At this time, we will now conduct the question-and-answer session. To ask a question, please press star 11 on your telephone. and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile our Q&A roster. And our first question will come from Yu Fan from CICC. Your line is now open.

Thank you, management, for giving me the opportunity to ask this question. I am the analyst in the middle, Fan Youyou. First of all, congratulations to the company for achieving such a brilliant performance. I have two questions here that I would like to ask. First of all, the first one is about the client's assets. I also want to ask the management to help disassemble it. In this quarter, how much of the client's assets have increased? How much of it comes from the deposit? How much of it comes from the impact of the growth of the market? How much is the contribution from the sale and the institution? This is my first question. The second question is about the take rate. We see that in the third quarter, whether it is the comprehensive take rate of the blended zone or the cash equity take rate, there is actually a relatively large rise. I'm not sure if I heard it clearly. Maybe it's easy to say that it's because some small-scale stocks have more transactions. But it's because the market has risen in the third quarter. And in this case, it will theoretically lead to a decrease in take rate. So, can you please help me to explain the reason for the increase in the total use rate, including the take rate of cash equity? This is my second question. Then I will translate it here. Thanks, management, for taking my question. First, congratulations on the exciting results achieved this quarter. This is from CICC. I have two questions. The first one is regarding the AUM breakdown. So how much is from client net asset inflow and how much from market to market gain? And in terms of the net asset inflow, how much is from retail investors and how much from institutions? The second question is about the take rate. We see both the blended take rate and the cash equity take rate increase a lot this quarter. So could you please share the reasons behind the increasing take rate? That's my two questions. Thank you.

Okay, I'll answer the first question, and then Joanne will answer the second one. The third quarter, the stock market has a relatively large rise. It reached about 17%, which is 6.1 billion US dollars. In this, the profit from the user's entry fee and the market increase is about 3.7K. 30% of it is from the entry fee. The entry fee comes from the contribution of Singapore and Hong Kong market, which is more than 60%. Among them, the retail users are still the most important contribution group.

In the third quarter, current assets saw a meaningful increase of about 17%, reaching a historic high of $61 billion. So of this increase, roughly 30% were from the net asset inflow and 70% were from the market gains. More than 60% of the net asset inflow came from Singapore and Hong Kong markets, with retail clients being the key contributor.

Okay, let me answer your second question about the take rate. As I mentioned earlier, the take rate of the stock rose from 6.4 bps in the second quarter to 7.1 bps in the third quarter. The main reason is that some of the U.S. local Mimi stocks are relatively active in the third quarter. At the same time, the stock price is basically the same. Due to the fact that each stock is subject to each stock transaction receipt, the overall take rate of the stock is rising. The rise of Blended Techrate, in addition to the reason for the stock market, is that we see that the trading volume of the third quarter期货 fell from 7% of the total trading volume in the second quarter to about 4% in the third quarter. And then because our期货 is disclosed in the name itself, it will cause a drop in the total trading volume. Therefore, it will cause a relatively obvious rise in Blended Techrate. At the same time, this is why, from the financial report, our stock market trading volume is rising. For cash equities, the take rate increased from 6.4 bps in second quarter to 7.1 bps in the third quarter, primarily due to some U.S. local penny stock were particularly active in the quarter. Since recharge commission pressures for U.S. stock, this led to an increase in cash equity take rate. As for the blended take rate, aside from the increase in cash equity commissions, futures trading volume dropped from around 7% in the second quarter to about 4% in the third quarter. As we count notional value for futures trading, the decrease in futures trading volume while increasing commission income contribute to a notable increase in our overall blended take rate. This explains why our stock trading volume showed a quarter-order-quarter increase consistent with the increase in commission income But the total trading volume was actually done.

Thanks. Thank you.

Operator, please move on to the next question.

Thank you. And our next question will come from Cindy Wang with China Renaissance. Your line is now open.

Thank you for giving me the opportunity to ask this question. I am Cindy from Huaxin Capital. I have two questions here that I would like to ask. The first question is, we saw that there are 31,500 users in the third quarter of the new admission. Can you give us an original breakdown? The second question is, I would like to ask, because I have seen that the customer assets of the overseas market in the third quarter have a great growth. 那请问境内用户的一个资产环比的变化是如何? 以及截止到第三季度末的话,这部分的一个客户资产大概的一个占比是多少? 那我很快地翻译一下我两个问题。 Thanks for taking my question. This is Cindy from China Renaissance and congrats for the great third quarter results. I have two questions here. First, could you give us the breakdown of 31.5 thousand new funding accounts by regional in third quarter? And second, customer assets in overseas market enjoy significant sequential growth in third quarter. Could you please provide details on the onshore user assets quarter over quarter change and their contribution in overall client assets in third quarter? Thank you.

So for your first question, in the third quarter, about 40% of newly funded accounts came from the Singapore market.

Approximately 35% were from the Hong Kong and 20% from Australia and New Zealand market. and the rest 5% from the U.S. market.

第二个关于境内用户资产的情况, 首先第三季度境内投资者的客户资产也是双位数的环比增加, 机构和领受用户都是进入境内的情况, 那Multi-Market Game带来的帮助也会更加明显一些。 由于公司过去几年国际化拓展, the overseas market, and the growth of commercial assets faster. So, until the end of the third quarter, domestic retail investors in the entire group, the ratio of commercial assets has dropped below 15%. The latest opening rules are that domestic investors only hold overseas, of course, including Hong Kong's legal residence permit, so that they can open up here. This is also a unified rule of the entire industry. As for us, The Chinese investment community in the Greater China Region is still optimistic, because the high-ranking Chinese people in the Greater China Region have a certain degree of overseas identity. The relevant requirements for high-ranking and wealthy Hong Kong people are also gradually opening up. The Chinese people in the Greater China Region are also just beginning to develop, and they have a huge potential in the future.

So in the third quarter, client access for the onshore investor also saw a double-digit quarter-over-quarter increase, with both institutional and retail clients experiencing net-added inflow. And market-to-market gains also boosted the quarter-over-quarter increase. Due to our global expansion over the past few years, The growth pace for client assets in overseas markets has been faster. By the end of the Q3, client assets of onshore retail users as a percentage of our total client assets has dropped to below 15%. The new account opening rules require onshore investors to hold value overseas, including Hong Kong identification to open accounts with us. It has been the same rule across the whole industry. We remain optimistic about the Greater China market because many high-net-worth individuals in Greater China already have overseas identities, and the requirement for the Hong Kong Quality Migrants Admission Scheme are gradually becoming less, well, I would say, stringent. The global asset allocation for investors is just getting started, presenting tremendous market potential. Just by serving this cohort, we will be able to sustain strong growth in client assets and trading volumes. Thanks, Cindy. Operator, let's proceed.

Thank you. And our next question will come from Emma Yu from B of A Securities. Your line is open.

Thank you for the opportunity to ask this question. Congratulations to the company for achieving a very strong performance in the third quarter. I also have two questions here. The first question I want to ask is how is the overall business situation in the fourth quarter? Including sales, customer assets, and new入金用户 these indicators, are there any preliminary situations that you can share with us? The second one is that we see that the calculation cost rate of the third quarter company has decreased relatively significantly. I want to ask what is the main reason behind this? 那这个下降的成本率是否可持续或者有没有进一步的这个下降的空间? 那我翻译一下我的两个问题。 So the first question is about the operations so far in the fourth quarter. But in particular, could you share any early trends around the trading volume, client assets, and new founded accounts? And the second question is about your clearing costs. which decreased quite significantly in the third quarter. So what are the major reasons behind? And do you believe the current clearing cost is sustainable or has further room for reduction? Thank you.

谢谢,我回答第一个问题,Joyne回答第二个。 在交易额的方面,目前来看,市场依然是非常活跃的。 公司第四季度前两个月的交易额,从收入上来看, has been even with the overall third quarter. Of course, there is a reason for the stock market to rise in the fourth quarter. If you only look at the stock market, the stock market exchange of the fourth quarter two months ago has also exceeded the level of the third quarter's two-thirds of the overall third quarter. In terms of customer assets, the income from the fourth quarter two months ago is still relatively strong. At present, it will be better than the third quarter. However, the market has been fluctuating relatively sharply since the fourth quarter. There will also be some market loss for users. So, the overall situation of users' assets will depend on the performance in December. As far as new entry users are concerned, we have completed the target of 150,000 customers throughout the year. In the fourth quarter, it is expected that the number of new entry users will be about the same as in the third quarter. In this regard, the company will still uphold the strategy of priority of user quality, so that the company can maintain the health of the profit model while growing.

Okay, so regarding trading volume, the market remains quite active. Our trading volume for the first two months of the fourth quarter is already on par with the entire Q3, partly due to the increase in futures trading volume. Cash equity trading volume in the first two months of the fourth quarter is more than two-thirds of the cash equity trading volume in the third quarter. In terms of client assets, net asset inflow quarter to date remains robust, and are expected to be slightly better than the Q3. However, some users had market loss due to the market volatility in the fourth quarter. We will have a better idea of the total current assets movement by the end of December. As for new funded accounts, we have already achieved our annual target of acquiring 150,000 clients for the year. The number of new funded accounts in Q4 are expected to be roughly in line with it in Q3. We will continue to prioritize user quality, ensuring our growth aligns with healthy business model.

Okay, Emma, let me answer your question about the cost of calculation. As you said, our three-year salary is 13%, while the cost of calculation is 17%. So the single-recorded settlement rate has also dropped to 6% of the historical new low. The main reason behind this is that the SEC announced that it would no longer collect trading fees since mid-May this year. And then the ratio of trading in the tiger platform is about 7% to 8%. So the change in the trading fee of the SEC will save us a lot of settlement fees. From this perspective, we think the current settlement rate can still continue. So our commission income increased by 13% quarter-over-quarter, clearing costs decreased by 17% this quarter, bringing the quarterly clearing costs to a historic low of 6%. The key reason is SEC in May announced that it will no longer charge transaction fee. Since majority of the trading volume on our platform are in U.S. securities, this change in the SHP has largely helped us reduce carrying cost. We believe the current carrying cost rate is quite sustainable, as we are self-carrying for all core products. Only a small number of stock and derivatives are carried by third parties. Thanks.

Thanks, Emma. Operator, let's move on to the next question, please.

Thank you. Our next question will come from Ling Tan from Haitong. Your line is open.

感谢管理层给我这个提问的机会。 也恭喜公司取得了非常亮丽的业绩。 我这边有两个问题想要请教一下。 第一个问题是关于成本端的。 留意到公司三季度各项固定的成本环比都有一个比较明显的上升。 Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. I will quickly translate my question. Thank you, management, for taking my question and congratulations on a very good third quarter result. My first question is regarding the overall operating costs and expenses. I noticed that in third quarter there's a notable increase in the overall cost and expenses, in R&D as well as in compensation, which is higher than the previous guidance of 10 to 20% year-over-year growth. Could management explain a little bit on what's the reason behind the increase? And looking forward, do you expect the overall operating cost and expenses to remain at the current level, or do you expect it will gradually go up or trend down. My second question is regarding Hong Kong market. In third quarter, Hong Kong contributed to roughly around 40% of their total newly funded account. Could management explain a little bit more on Hong Kong's contribution regarding net asset inflow, total revenue, as well as net profits? And also looking forward, how do you plan to maintain the strong growth in Hong Kong given Hong Kong is a highly competitive and highly penetrated market?

Okay, thank you for your question. Let me answer your two questions. The first one is about the trading cost you mentioned. First of all, there are several reasons for the increase in human resources. The first reason is that the company is increasing the number of employees as it develops. At the same time, in order to optimize the function of the product, we have also introduced some more advanced product development experts this year. The second reason is that this year's profit performance is still good, so we have also raised some prize money in 3Q to motivate employees. The third reason is that we have also achieved a good progress in the three-week support management business. Therefore, our fund managers who are in charge of asset management also mentioned the corresponding performance bonus. So these are the reasons why the cost of human resources in the third quarter is indeed a little higher than the normal one-year level in the past. In addition, the rise in management costs is mainly due to the development needs of the company's global business. We have some professional subsidies, mainly in the areas of anti-waste money, audit consultation and legal consultation. In this part, we expect that in the future, it will continue to be at this level. So the rise in labor costs can be attributed to several factors. First, with our global expansion, the staff income has increased, and we have higher experience R&D personnel to enhance our product offerings. Second, we have accrued more bonus given the recent performance. In addition, our asset management unit performed well in the third quarter, so we paid performance bonus to our fund managers. So as a result, labor costs in the third quarter were higher than normal single quarters. As for GMA expense, the increase is mainly due to as we grow globally, we are required to have more professional services related to AML, audit consulting, and legal services. We anticipate those expenses will remain at this level in the near future. 第二个问题是关于香港, 就是说从三季度来看来, The contribution of Hong Kong in the number of new users is about 35%. The contribution to the economy is about one-tenth. After becoming Singapore, the company is another important growth source. In terms of profit, the main body of Hong Kong has been profitable in recent years. But the proportion of the overall profit of the group is relatively low. Facing such a high-quality market in Hong Kong, our focus at this stage is to further enrich the products in the Hong Kong market and increase the market share of the local market. and not to pursue profits. From the perspective of growth, we are still satisfied with the growth since we entered the Hong Kong market. The source of competitive users is also very diverse. There are both market stock customers from other exchanges and young groups that have just entered the market. We think that the advantage of products is the price advantage, which is the core capital in the Hong Kong market. It is also the reason why different groups will choose us. Since the company entered the Hong Kong market, local customer assets have achieved double-digit return growth in all seasons. In the past three seasons, the return growth has reached more than 60%. New and old users' mutual assets are also at more than $30,000. Trade activity and output are also the highest in all of our markets. The overall profit and loss model is very healthy. As the company increases the investment in the Hong Kong market, and we continue to improve the richness of products such as virtual currency, we are still very optimistic about the future growth of the Hong Kong market. So in the third quarter, Hong Kong accounts for about 35% of new users and approximately one quarter of lead asset inflow, making it another key growth engine alongside Singapore. As for bottom line, Tiger Brokers Hong Kong has been profitable over the past years, though its contribution to group profit was still relatively low. Considering the high user quality in Hong Kong, our current focus is to further improve our product offerings and increase market share rather than prioritizing profit contribution from the Hong Kong market. We are quite satisfied with the growth pace since entering Hong Kong. Our user base is very diversified, including existing investors using other brokers and the younger generation entering the market. We believe our product experience combined with competitive pricing are fundamental to Tiger's growing presence in Hong Kong and the reasons why different users choose us. Since entering the Hong Kong market, client assets have consistently seen double-digit growth quarter over quarter, with over 60% increase in the third quarter. The average client asset per user for both new and existing clients exceeded $30,000, and both will also give our pool at the highest across all our markets. As we increase our user acquisition in Hong Kong, along with the ongoing enhancement of our product offering like cryptos, we remain optimistic about future growth in this market. It's only a matter of time Hong Kong becomes another major profit contributor for the group. Thanks. Okay.

Thanks, Mili. Operator, let's move on.

Thank you. One moment for our next question. And our next question will come from Dennis Bai from UBS. Your line is open.

I have two questions. The first question is about the client acquisition cost per head. I observed that from last year to now, the trend of CAC's presentation has risen. Last year, it was about 150 US dollars. This year, it is more than 250 US dollars. In the third quarter, it is more than 400 US dollars. At the same time, the company has not launched a new market. In the third quarter, what is the situation of the human resources cost of each market? In the fourth quarter to now, including next year, how do you see the growth of the human resources cost? The second question is about the company's interest income in the third quarter. We observed a very large increase in the balance. But the balance of the two-person business is flat. Thanks for taking my question, and congratulations on the strong results. My first question is about client acquisition cost per head, CEC. We've seen an uptrend. In 2024, the CEC is about 150 U.S. dollars, and in the first three quarters, the average CEC is about $250. And in Q3, particularly, the CAC exceeds 400 U.S. dollars, and there's no new market interest. Could you please break out the Q3 CAC by market and share your outlook for CAC in Q4 and next year? And my second question is about the interest income. We saw a sharp QOQ increase in Q3, but the margin financing and the stock lending balance remains flat, sequentially. Could you please explain what drives the interest income growth and whether this trend is sustainable? Thank you.

Okay, thank you, Dennis. Let me answer these two questions. First of all, about CAC, actually, based on the strategy of Tiger, we have always put the user quality and ROI in the first place, and at the same time, we combine the market environment to adjust the cost of goods and services. So, during different periods, the CAC of different brands will have some fluctuations, Since this year, we have continued to optimize the way of the company's customers, remove the channel of ROI, and at the same time improve the expansion of high-quality users. This is mainly for the Singapore market. So the CAC change in the Singapore market is the biggest. From more than 100 US dollars in 2020, it has risen to more than 400 US dollars this year. But at the same time, the user quality of new users from Singapore has also been greatly improved. For example, in the third quarter, the average income of new entry users in the local area reached more than 60,000 US dollars. So we think from the perspective of life cycle Long-term business and profits for the company are all good Then the Hong Kong market was relatively competitive So the cost of human resources and goods is relatively high The basic stability is about 300 to 400 US dollars The third quarter is about 300 US dollars But because the quality of local users is relatively good So the return cycle is still the fastest region Auxin and the United States We hold long-term ownership Gradually gain the trust of local users So the human resources and goods are relatively stable So overall, we privatize user quality and ROI, diametrically adjusting customer acquisition costs based on market conditions. As a result, average CHD can fluctuate across different periods and for different markets. This year, we have continued to optimize our customer acquisition strategy by eliminating channels that do not meet our ROI standards and focus on attracting high-level users, particularly in the Singapore market. As a result, average CHD in Singapore has decreased. rising from just over 100 back in 2024 to over $400 this year. At the same time, the quality of new users from Singapore keeps improving, with the average net inflow per new users exceeding $60,000 in the third quarter. From a lifetime value perspective, we believe this will benefit our profitability in the long term. The Hong Kong market has always been competitive, leading to a higher average CAC which remains stable in the $300 to $400 range. Back in this quarter, it was about a $300 USD. However, due to the high quality of the local users, the payback period is still the shortest among all the markets we entered. In Australia, New Zealand, and the U.S., we adopted a long-term approach to gradually earn local users' trust, resulting in a relatively stable average CAC around $200 USD. Looking ahead, we will continue to adjust our customer acquisition strategy based on market conditions and competitive dynamics. 第二个问题是关于利息。 我解释一下,出现这种趋势背后主要是有两个原因。 第一个是随着公司客户资产, 尤其是进入最近这几个季度的快速增长, 用户的闲置资金的规模有所上升。 The third quarter is about $1 billion more than the second quarter. In addition, as the company's profit is gradually increasing, our profit flow will be added to the cash balance. These two parts of growth will contribute interest, but will not reflect the scale of the two industries. The second reason is that compared to the second quarter of the third quarter, although the overall balance of the two industries is relatively flat, So there are two key reasons for this trend. Interest income increase but margin balance relatively flat. So the number one reason is the graphic growth of client asset had lead to an increase in client idle cash, adding approximately one billion from second quarter to third quarter. Additionally, as our profitability extends, our return earnings contribute to an increased cash balance as well. Both of those will boost interest income, but not reflecting increase in the margin financing or securities lending balance. The second reason is the Well, the overall margin and securities lending balance remains flat from second quarter to third quarter. But a balance of high spread business, such as margin financing and securities lending, increased, while a balance of lower spread business, like Conduit, decreased. Results in flat margin and securities lending balance, while interest income had a big jump. Thanks.

Thanks, Denise. Operator, let's move on to the next question.

Thank you. And I'm showing no further questions from our phone lines, and I'd like to pass it back to Aaron Lee for any closing remarks.

Thanks. I'd like to thank everyone for doing the call today. I'm now closing the call on behalf of the management 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.

Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect.