The conference call discusses Up FinTech Holding Limited's first quarter 2025 earnings, featuring remarks from the CEO and CFO on business operations, corporate highlights, and financial results, followed by a Q&A session.

In the first quarter of 2025, Tiger Broker reported total revenue of $122.6 million, with trading volume reaching $2,170 billion USD, driving commission income to a record $58.3 million. Net interest income grew to $53.8 million, and GAAP net income attributable to the FinTech reached $30.4 million, marking significant year-over-year increases. Despite heightened market volatility, the company showcased strong profitability and improved earnings quality, providing flexibility for strategic initiatives and long-term growth.

In Q1 2025, Tiger Brokers experienced a substantial increase in new funded accounts, reaching over 40% of its 2025 target, with a strong year-over-year growth of 111.2%. Total funded accounts rose to 1.15 million, and client assets saw a net inflow of $400 billion, driven by retail clients in Singapore and Greater China. Total client assets reached a record high of $45.9 billion. The company also reported significant growth in the Greater China region, with assets from Hong Kong increasing by over 20% quarter-over-quarter. Tiger Brokers enhanced its product offerings, including the upgrade of Tiger GPT to Tiger AI, which significantly improved user satisfaction. Additionally, the company received approval to offer virtual asset trading and related services in Hong Kong, further integrating traditional and digital asset markets. Recent launches include equity repo and delivery versus payment features, enhancing stock borrowing and lending operations.

The company successfully enrolled for Hong Kong IPOs in the fourth quarter, notably participating in Mi Group's record-breaking IPO exceeding HK$100 billion in subscription. Additionally, the ESOP business witnessed a 14% YoY growth, adding 20 new clients in Q1 to serve a total of 633 by March 31, 2025.

The company reported a significant increase in commission income, more than doubling year-over-year, alongside a 55.3% year-over-year rise in total revenue. Interest income saw a 20.23% year-over-year increase but a slight quarter-over-quarter decrease due to the maturity of US Treasury holdings. Operating costs rose by 32% from the previous year, primarily due to increased headcount, overseas expansion, and marketing expenses. Despite this, the bottom line showed substantial growth, with GA net income increasing by 146.7% year-over-year and non-GAAP net income by 145%.

The company reports record-breaking trading volumes exceeding $100 billion in April, driven by market volatility concerning tariffs. Despite anticipated decreases in new value users compared to Q1, the firm remains confident in meeting its annual target of acquiring 150,000 family users, focusing on quality over quantity. Labor costs and headcount are projected to grow moderately, with a disciplined approach to expansion in key markets. Increased customer acquisition costs, estimated at around $250-$300, reflect intensified efforts in high-value markets and investments in brand awareness for long-term growth.

The company experienced strong growth, with $3.2 billion in asset inflows, 60% from Greater China, 30% from Singapore, and the rest from US and Australia New Zealand. About 60% of the inflows came from retail clients. Despite a flattish net interest income, margin financing interest income increased quarter-over-quarter. The impact of a Fed rate cut is estimated to negatively affect quarterly net interest income by about $1 to $1.5 million for every 25 BPS cut.

In Q1, 45% of new funded accounts came from Singapore and Southeast Asia, with 30% from the Greater China region. The company views the Hong Kong market as highly attractive despite increased competition, emphasizing their competitive edge in clearing efficiency, product offerings, US derivatives, virtual asset trading, and AI integration. They plan to continue investing in talent and marketing in Hong Kong to deliver superior product experiences.

In Q1 2025, the Hong Kong market showed significant performance with the highest ARPU among all markets entered, driven by high average client assets and trading velocity. New fund clients introduced substantial net asset inflows, and planned assets grew over 20% quarter-over-quarter and year-over-year, marking Hong Kong as the third-largest market in terms of assets under custody. In March, an upgraded Tiger AI was launched for Hong Kong users, offering unlimited free access to advanced language AI models and market data to enhance investment analysis and decision-making.

The conference call is closed by the management team at Tiger, expressing gratitude for participation and directing further inquiries to investor relations.