Financial Performance - Adjusted net income for 2024 was US$71.1 million, up from US$43.2 million in 2023, reflecting a significant increase in profitability [762]. - Net cash provided by operating activities in 2024 was US$828.0 million, compared to a net income of US$61.4 million, driven by increased payables and receivables due to user base growth [772]. - The company maintained a minimum net capital requirement in compliance with SEC regulations, ensuring financial health [763]. Liquidity and Cash Flow - Cash and cash equivalents increased from US$322.6 million in 2023 to US$393.6 million in 2024, indicating improved liquidity [765]. - Net cash used in investing activities in 2024 was US$8.7 million, primarily for equity investments and property, equipment, and intangible assets [775]. - Net cash provided by financing activities in 2024 was US$103.8 million, mainly from a follow-on public offering [778]. Research and Development - Research and development expenses rose to US$80.1 million in 2024, up from US$63.5 million in 2023, highlighting a focus on technology development [787]. Capital Management - Capital expenditures were US$1.6 million in 2024, indicating a conservative approach to capital investment [781]. - The company has not paid dividends in the past and has no plans to do so in the foreseeable future, dependent on subsidiary earnings and regulatory conditions [783]. Financial Reporting and Compliance - The consolidated financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions affecting reported amounts of assets, liabilities, revenues, and expenses [790]. - Significant judgment is required in determining income tax expense based on tax laws in various jurisdictions, impacting the effective income tax rate [792]. - A valuation allowance is recorded to reduce deferred tax assets, requiring significant judgment regarding past and projected financial performance [793]. Risk Management - The company has not utilized any derivative financial instruments for currency risk hedging, monitoring exchange rate movements closely [762].

Summary of the Earnings Conference Call Company Overview - The conference call was held by U.S. Tiger Securities, led by CEO Mr. Huang Lei and financial controller Mr. Kenny Zhao, discussing the 4th quarter and annual financial results for 2024 [1][2]. Key Financial Highlights - **Net Profits**: The parent company's net profits for 2023 were $60.7 million, an increase of 86.5% year-over-year, while non-GAAP net profits were $70.5 million, up 65% [2][3]. - **4th Quarter Performance**: In Q4, net profits were $28.1 million (GAAP) and $30.5 million (non-GAAP), reflecting increases of 58% and 51.7% quarter-over-quarter [2][3]. - **Total Revenue**: Q4 total revenue reached $124.1 million, a 22.8% increase quarter-over-quarter and a 77.3% increase year-over-year. Full-year revenue was $391.5 million, up 43.7% from 2023 [2][6]. - **Profit Margins**: Non-GAAP net profit margin rose from 20% in Q3 to 25% in Q4 [2][3]. User Growth and Client Assets - **New Users**: 59,000 new recording users were added in Q4, a 17.2% increase from the previous quarter, exceeding the annual target of 150,000 new users [3][4]. - **Client Assets**: Total client assets reached $4.17 billion at the end of Q4, with net asset inflows of over $1.1 billion, 80% from retail users [3][4]. - **Market Performance**: Hong Kong's client assets grew by about 50% quarter-over-quarter, making it the third-largest market for the company [4][17]. Business Operations and Strategy - **Investment Banking**: The company underwrote 14 U.S. and Hong Kong ICOs in Q4, totaling 44 for the year [6]. - **Product Development**: The company upgraded its AI investment assistant to Tiger AI and received licenses for its cryptocurrency platform, YAX, making it a licensed virtual asset trading platform in Hong Kong [5][16]. - **Focus on Quality**: For 2025, the company aims to maintain a target of 150,000 new users while prioritizing user quality and ROI [9][10]. Market Dynamics and Challenges - **Cost Increases**: Employee compensation and benefits rose by 41% year-over-year due to increased headcount and bonuses [7][11]. - **Tax Rate Increase**: The effective tax rate increased from 14% in Q3 to 25% in Q4, attributed to higher profits from the U.S. market [11][12]. - **Market Volatility**: Despite fluctuations in the U.S. stock market, trading volumes remained steady, with higher daily trading volumes noted in March compared to earlier months [12][13]. Conclusion - The company demonstrated strong financial performance in 2024, with significant growth in user base, revenue, and profitability. The focus on enhancing user experience through product upgrades and maintaining high-quality user acquisition is expected to drive future growth. The management remains optimistic about navigating market challenges while leveraging opportunities in both traditional and virtual asset markets [1][5][17].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [8][16]. Core Insights - The company reported a total revenue of $390 million for 2024, reflecting a year-on-year growth of 43.7%, and a Non-GAAP net profit of $70 million, which is a 65% increase compared to the previous year [1]. - In Q4 2024, the company experienced a significant increase in commission income, which reached $56 million, a year-on-year growth of 154.9%, driven by a 182% increase in stock trading volume to $55.5 billion [2]. - The number of new funded clients exceeded expectations, with a total of 1.092 million clients by the end of 2024, marking a 20.7% increase year-on-year [3]. - The company has upgraded its AI investment assistant to TigerAI, enhancing its technological capabilities [5]. - The forecast for Non-GAAP net profit growth is projected at 71% for 2025, with earnings per ADS expected to be $0.78, leading to a corresponding PE ratio of 12.43 [6]. Financial Summary - For 2024, the company achieved a total revenue of $392 million, with projections for 2025, 2026, and 2027 at $517 million, $659 million, and $767 million respectively, indicating growth rates of 32.13%, 27.43%, and 16.39% [13]. - The Non-GAAP net profit for 2024 was $70 million, with estimates of $120 million, $156 million, and $197 million for the following three years, reflecting growth rates of 70.99%, 29.85%, and 25.60% [13]. - The average revenue per user (ARPU) for Q4 2024 was $116.8, showing a year-on-year increase of 48% [3].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The company reported a significant increase in total revenue for 2024, achieving a year-on-year growth of 44% to reach $392 million, with net profit rising by 86% to $61 million [1]. - In Q4 2024 alone, total revenue surged by 77% year-on-year to $124 million, with net profit of $28 million, a turnaround from a loss of $1.8 million in the same quarter of the previous year [1]. - The increase in revenue is attributed to heightened trading activity in Hong Kong and U.S. markets, leading to a 72% rise in commission income to $159 million and a 28% increase in interest income to $192 million [8]. Revenue and Profitability - Total revenue projections for the company are as follows: $525 million in 2025, $652 million in 2026, and $776 million in 2027, with respective year-on-year growth rates of 34.1%, 24.2%, and 19% [20]. - The company expects net profit to reach $96 million in 2025, $116 million in 2026, and $137 million in 2027, reflecting growth rates of 58%, 21%, and 18% respectively [20]. Operational Performance - The company experienced a 31% increase in total operating costs and expenses to $252 million in 2024, driven by higher trading volumes and global business expansion [8]. - Key components of the cost increase included a 61% rise in settlement and execution fees, a 21% increase in salary and benefits, and an 80% increase in management and administrative expenses [8]. Market Position and Innovation - The company has introduced several innovative products to enhance user experience, including the launch of a trading account with Cash Boost and the approval of its cryptocurrency platform in Hong Kong [8]. - The company is positioned to expand its overseas market presence and accelerate user growth, indicating a strong long-term growth potential [8].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The company reported a significant increase in total revenue for 2024, achieving a year-on-year growth of 44% to reach $392 million, with net profit rising by 86% to $61 million [1]. - In Q4 2024 alone, total revenue surged by 77% year-on-year to $124 million, with net profit of $28 million, a turnaround from a loss of $1.8 million in the same quarter of the previous year [1]. - The increase in revenue is attributed to heightened trading activity in Hong Kong and U.S. markets, leading to a 72% rise in commission income to $159 million and a 28% increase in interest income to $192 million [8]. Revenue and Profitability - The company’s total revenue is projected to grow from $273 million in 2023 to $525 million in 2025, with a compound annual growth rate (CAGR) of 34.1% [1]. - Net profit is expected to increase from $61 million in 2024 to $96 million in 2025, reflecting a growth rate of 58% [1]. - Earnings per share (EPS) is forecasted to rise from $0.02 in 2024 to $0.03 in 2025 [1]. Business Segments - Commission income is anticipated to grow from $159 million in 2024 to $210 million in 2025, while interest income is expected to increase from $192 million to $270 million in the same period [20]. - The company has seen a substantial increase in customer engagement, with the number of funded clients rising to 1.09 million, a 21% increase year-on-year [8]. Cost Structure - Total operating costs and expenses increased by 31% year-on-year to $252 million in 2024, driven by higher trading volumes and global business expansion [8]. - Key cost components include a 61% rise in settlement and execution fees, a 21% increase in salary and benefits, and a 26% increase in commission and market data expenses [8]. Market Position and Innovation - The company is actively enhancing user experience through product innovations, such as the launch of the Cash Boost trading account and the approval of its cryptocurrency platform in Hong Kong [8]. - The integration of AI technology into its investment platform positions the company as a leader in adopting advanced trading solutions [8]. Valuation Metrics - The current market capitalization is approximately $1.8 billion, with a price-to-earnings (P/E) ratio projected to decrease from 29.46 in 2024 to 18.59 in 2025, indicating potential for value appreciation [1][20]. - The report highlights a favorable long-term growth outlook, supported by the company's expansion into overseas markets and user base growth [8].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was US$124.1 million, representing a 22.8% increase quarter-over-quarter and a 77.3% increase year-over-year [9] - Full year total revenue reached US$391.5 million, a 43.7% increase from 2023 [9] - GAAP net income for Q4 was US$28.1 million, and non-GAAP net income was US$30.5 million, reflecting increases of 58% and 51.7% quarter-over-quarter respectively [10] - For the full year, GAAP net income was US$60.7 million, and non-GAAP net income was US$78.5 million, up 86.5% and 65% respectively from 2023 [10][22] - Non-GAAP net profit margin increased from 20% in Q3 to 25% in Q4 [11] Business Line Data and Key Metrics Changes - Commission income grew by 35.8% and interest income by 16.3% compared to the previous quarter [9] - In Q4, 70% of commission revenue came from cash equities, 30% from options, and the remainder from futures and other products [20] - The company underwrote 14 U.S. and Hong Kong IPOs in Q4, bringing the total for the year to 44 [16] Market Data and Key Metrics Changes - Total client assets grew by 2.4% quarter-over-quarter and 36.4% year-over-year, reaching US$41.7 billion [13] - Client assets in Hong Kong increased by about 50% quarter-over-quarter, making it the third largest market in terms of client assets [13] - In Q4, approximately 80% of net asset inflows came from retail users [12] Company Strategy and Development Direction - The company aims to acquire 150,000 new funded clients in 2025, focusing on user quality and ROI rather than just quantity [27] - The company has received licenses to operate as a virtual asset trading platform in Hong Kong, allowing it to offer spot trading and custody services for major cryptocurrencies [46] - The company plans to continue investing in the Hong Kong market to drive growth and attract high-quality users [48] Management's Comments on Operating Environment and Future Outlook - Management noted that the market was very active in Q4, benefiting margin financing and securities lending activities [34] - Despite recent market volatility, the company expects trading volume to remain steady, with an increase in average daily trading volume observed in March [39] - Management expressed confidence in the growth potential of the Hong Kong market, with significant increases in trading volume and commission income [47] Other Important Information - The company added 59,200 newly funded accounts in Q4, a 17.2% increase from the previous quarter, bringing the total number of funded accounts to 1.09 million [11] - The average net asset inflow for newly funded users in Hong Kong was over US$30,000, the highest among all markets [48] Q&A Session Summary Question: How does the company plan to achieve its 2025 guidance for new funded clients? - Management stated that the focus will be on acquiring high net worth users and improving customer quality metrics, maintaining the target of 150,000 new funded users [27] Question: Can you provide a breakdown of new funded clients by region in Q4? - Approximately 60% of new funded users came from Singapore and Southeast Asia, 25% from Greater China, 10% from Australia and New Zealand, and 5% from the U.S. [28] Question: What caused the rise in compensation expenses and the effective tax rate? - The increase in labor costs was attributed to year-end bonuses, and the effective tax rate rose due to higher profits from the U.S. market [34] Question: How will the VATP license contribute to growth in the crypto sector? - The license allows the company to offer spot trading and custody services for major cryptocurrencies, aiming to bridge traditional finance and cryptocurrency [46] Question: What explains the growth in interest income despite a flat micro finance and securities lending balance? - The increase in interest income was due to better rate terms negotiated with local banks and increased demand in the securities lending market [50]

Group 1 - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] - The author maintains a bullish stance on a specific company after evaluating its third quarter financial and operational performance [1] - The service provides a variety of watch lists with monthly updates, particularly emphasizing investment opportunities in the Hong Kong market [1]

Core Insights - UP Fintech Holding Limited reported record-high financial results for Q4 and full year 2024, with Q4 revenue of US$124.1 million, a 77.3% YoY increase, and full-year revenue of US$391.5 million, a 43.7% YoY increase [1] - Non-GAAP net income for Q4 reached US$30.5 million, up 51.7% QoQ and 2772.5% YoY, while full-year non-GAAP net income grew 65% YoY to US$70.5 million [1] Financial Performance - Q4 revenue was US$124.1 million, marking a 77.3% YoY increase, while full-year revenue reached US$391.5 million, a 43.7% YoY increase [1] - Non-GAAP net income for Q4 was US$30.5 million, a 51.7% QoQ increase and 2772.5% YoY increase, with full-year non-GAAP net income at US$70.5 million, a 65% YoY increase [1] Client Growth - In Q4, UP Fintech added 81,300 new account openings globally, a 70.1% YoY increase, bringing total global accounts to 2.4 million [2] - The company added 59,200 new funded clients in Q4, a 51.4% YoY increase, with total funded clients reaching 1,092,000, up 20.7% YoY [2] Trading Activity - Total trading volume in Q4 increased 142.2% YoY to US$198 billion, supported by active market trading [2] - Net asset inflows from individual and institutional clients reached US$1.1 billion in Q4, while total client assets grew 36.4% YoY to a record US$41.7 billion [2] Market Expansion - The company expanded its global presence, with significant growth in Singapore, Hong Kong, New Zealand, Australia, and the US [3][4] - Singapore remains the largest market, with record trading volume and commission income, increasing 196% and 66% YoY respectively [4] Product and Service Innovations - UP Fintech launched new trading features and tools, including a 24-hour trading option for US stocks and enhancements for options trading [10] - The company introduced TigerGPT, an AI-powered investment assistant, which saw a 1,000% increase in user interactions post-upgrade [11] Wealth Management - Wealth management assets under custody (AUC) rose 98.3% YoY, with a wealth user penetration rate of 23% among newly funded accounts in Q4 [13] - The company introduced new financial products tailored to high-net-worth clients, enhancing its wealth management offerings [13] Investment Banking - UP Fintech participated in 8 US IPO projects and underwrote 9 Hong Kong IPOs in Q4, ranking fifth in the Hong Kong IPO underwriting rankings [15] - The investment banking business saw a 33% YoY increase in the number of underwritings [15] Recognition and Awards - The company received multiple industry accolades, including recognition as a leading broker in Hong Kong and Australia [6][7]

Core Viewpoint - UP Fintech Holding Limited reported significant growth in both financial and operational performance for the fourth quarter and full year of 2024, achieving record revenues and net income [2][6]. Financial Highlights for Fourth Quarter 2024 - Total revenue reached US$124.1 million, a sequential increase of 22.8% and a year-over-year growth of 77.3% [2][6]. - Net income attributable to ordinary shareholders was US$28.1 million, representing a quarter-over-quarter growth of 58.0% and a turnaround from a net loss of US$1.8 million in the same quarter of the previous year [2][7]. - Non-GAAP net income attributable to ordinary shareholders was US$30.5 million, a quarter-over-quarter increase of 51.7% and a year-over-year increase of 2772.5% [2][7]. Financial Highlights for Fiscal Year 2024 - Total revenue for the year amounted to US$391.5 million, a 43.7% increase from 2023 [7][18]. - Net income attributable to ordinary shareholders for the year was US$60.7 million, an increase of 86.5% compared to the previous year [7][24]. - Non-GAAP net income for the year was US$70.5 million, a 65.0% increase from 2023 [7][25]. Operating Highlights as of Year End 2024 - The total number of customers with deposits reached 1,092,000, a 20.7% increase year-over-year [3][7]. - The total account balance rose to US$41.7 billion, reflecting a 36.4% year-over-year increase [7][19]. - The company added 59,200 customers with deposits in the fourth quarter, exceeding its yearly guidance of 150,000 [3][7]. Selected Operating Data for Fourth Quarter 2024 - The number of customer accounts increased to 2,449,300, up from 2,195,700 in the same quarter of the previous year [5][39]. - Trading volume reached US$198.0 billion, a significant increase from US$81.8 billion in the same quarter of the previous year [5][39]. - The number of options and futures contracts traded was 18,926.3 thousand, up from 8,044.5 thousand in the same quarter of the previous year [5][39]. Product and Service Developments - The company launched a licensed cryptocurrency trading platform in Hong Kong and upgraded its AI investment assistant, TigerGPT, to TigerAI, integrating leading AI models [4][34]. - The corporate business performed well, underwriting 14 U.S. and Hong Kong IPOs in the fourth quarter, totaling 44 for the year [5][34].

Core Viewpoint - UP Fintech Holding Limited will report its financial results for Q4 and the full year of 2024 on March 18, 2025, before the U.S. market opens [1] Group 1: Financial Reporting - The financial results announcement will occur before the U.S. market opens on March 18, 2025 [1] - An earnings conference call is scheduled for 8:00 AM U.S. Eastern Time on the same day [2] Group 2: Conference Call Details - Participants must preregister online to receive dial-in numbers for the conference call [3] - A registration link is provided for participants to RSVP for the earnings conference call [4] - Confirmation emails will include participant dial-in numbers and personal PINs, with a recommendation to dial in 10 minutes prior to the call [5] Group 3: Company Overview - UP Fintech is a leading online brokerage firm targeting global investors, offering a mobile and online trading platform [6] - The company employs a "mobile first" strategy to enhance user experience and attract new customers [6] - Services include trade order placement, margin financing, IPO subscription, and investor education among others [6]