UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2024
Commission File Number: 001-38833
UP Fintech Holding Limited
1 Raffles Place, #35-61 One Raffles Place
Singapore (048616)
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F |
☒ |
Form 40-F |
☐ |
UP Fintech Holding Limited Reports Unaudited Fourth Quarter And Full Year 2023 Financial Results
UP Fintech Holding Limited (NASDAQ: TIGR), a leading online brokerage firm focusing on global investors, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023. A copy of the news release relating to the above matter is set forth in Exhibit 99.1, which is being furnished herewith.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
UP Fintech Holding Limited |
|
|
|
|
|
By: |
/s/ JOHN FEI ZENG |
|
Name: |
John Fei Zeng |
|
Title: |
Chief Financial Officer |
|
|
|
Date: March 20, 2024 |
|
|
2
EXHIBIT INDEX
Exhibit |
|
Description |
|
|
|
99.1 |
|
3
EXHIBIT 99.1
UP Fintech Holding Limited Reports Unaudited Fourth Quarter And Full Year 2023 Financial Results
Singapore, March 20, 2024 – UP Fintech Holding Limited (NASDAQ: TIGR) (“UP Fintech” or the “Company”), a leading online brokerage firm focusing on global investors, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023.
Mr. Wu Tianhua, Chairman and CEO of UP Fintech stated: “In 2023, our topline mix benefited from our strategy execution on internationalization and the high interest rate environment. Total revenue in the fourth quarter was US$70.0 million, representing a 9.6% increase compared to the same quarter of last year. The full year total revenue amounted to US$272.5 million, a 20.9% increase from 2022. In 2023, we saw significant improvement in bottom line. Full year net income attributable to UP Fintech reached US$32.6 million, compared to a net loss of US$2.2 million in 2022. Our non-GAAP full-year net income attributable to UP Fintech was US$42.7 million, approximately 3.4 times the non-GAAP full-year net income of 2022.
In the fourth quarter, we added 39,034 new funded accounts, an increase of 58.6% quarter over quarter and 42.8% year over year, bringing our yearly total to 123,110, exceeding our yearly guidance of 100,000. The total number of funded accounts at the end of 2023 reached 904,600, a 15.8% increase compared to 2022 year-end. By leveraging our strong presence in the Singapore retail market and exploring online customer acquisition initiatives in the Southeast Asian regions, we achieved high growth in new funded accounts this quarter while further reducing the average customer acquisition cost (“CAC”) to US$150. Furthermore, we saw record US$8.2 billion net asset inflow this quarter, combined with US$3.5 billion mark to market gain, total account balance rose 62.1% quarter over quarter and 118.5% year over year to US$30.6 billion by the end of 2023. The record net asset inflow this quarter was primarily due to our continuous effort to serve and acquire more institutional investors.
We continued to add new products on our platform to enhance user experience, which we believe is key to our long-term success. In the fourth quarter, we introduced the Combo Option Strategy feature, allowing users to execute multi-leg options trades using net margin calculation. Additionally, we launched the Fixed Coupon Notes (“FCNs”) product, offering professional investors a more diversified wealth management experience. Furthermore, in January of 2024, Hong Kong SFC uplifted our Type 1 License, now we can offer Virtual Asset dealing services to Professional Investors. This positions us as one of the first mainstream online brokerage firms in Hong Kong to receive approval for such a license upgrade.
In our Corporate business, we underwrote a total of 9 U.S. and Hong Kong IPOs in the fourth quarter, including “Shiyue Daotian Group” and “J&T Express”, bringing the total number of U.S. and Hong Kong IPOs underwritten for the year to 28. In our ESOP business, we added 30 new clients in the fourth quarter, bringing the total number of ESOP clients served to 535 as of December 31, 2023.”
1
Financial Highlights for Fourth Quarter 2023
Financial Highlights for Fiscal Year 2023
Operating Highlights as of Year End 2023
Selected Operating Data for Fourth Quarter 2023
|
|
As of and for the three months ended |
|
|||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|||
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|||
In 000’s |
|
|
|
|
|
|
|
|
|
|||
Number of customer accounts |
|
|
2,008.0 |
|
|
|
2,147.9 |
|
|
|
2,195.7 |
|
Number of customers with deposits |
|
|
781.5 |
|
|
|
865.5 |
|
|
|
904.6 |
|
Number of options and futures contracts traded |
|
|
7,432.3 |
|
|
|
8,140.2 |
|
|
|
8,044.5 |
|
In USD millions |
|
|
|
|
|
|
|
|
|
|||
Trading volume |
|
|
68,541.9 |
|
|
|
80,250.7 |
|
|
|
81,765.2 |
|
Trading volume of stocks |
|
|
20,453.4 |
|
|
|
22,147.8 |
|
|
|
19,711.6 |
|
Total account balance |
|
|
14,005.3 |
|
|
|
18,878.5 |
|
|
|
30,597.5 |
|
2
Fourth Quarter 2023 Financial Results
REVENUES
Total revenues were US$70.0 million, an increase of 9.6% from US$63.9 million in the same quarter of last year.
Commissions were US$22.0 million, a decrease of 11.9% from US$24.9 million in the same quarter of last year, due to a decrease in trading volume in stock.
Financing service fees were US$3.2 million, an increase of 18.4% from US$2.7 million in the same quarter of last year, primarily due to increased interest rates.
Interest income was US$40.0 million, an increase of 31.3% from US$30.4 million in the same quarter of last year, primarily due to the increase in margin financing and securities lending activities.
Other revenues were US$4.9 million, a decrease of 15.6% from US$5.8 million in the same quarter of last year, primarily due to the decrease in IPO distribution incomes.
Interest expense was US$16.0 million, an increase of 122.5% from US$7.2 million in the same quarter of last year, primarily due to increased interest rates.
OPERATING COSTS AND EXPENSES
Total operating costs and expenses were US$52.5 million, a slight increase of 3.1% from US$50.9 million in the same quarter of last year.
Execution and clearing expenses were US$2.2 million, a decrease of 44.2% from US$4.0 million in the same quarter of last year due to more self-clearing of US and HK equities.
Employee compensation and benefits expenses were US$26.5 million, an increase of 8.1% from US$24.5 million in the same quarter of last year, primarily due to an increase of global headcount to support our global expansion.
Occupancy, depreciation and amortization expenses were US$2.2 million, an increase of 8.4% from US$2.0 million in the same quarter of last year due to increased rent.
Communication and market data expenses were US$8.5 million, an increase of 20.8% from US$7.1 million in the same quarter of last year due to increased IT-related fees.
Marketing and branding expenses were US$5.8 million, a decrease of 21.8% from US$7.4 million in the same quarter of last year, as we slowed down our marketing campaign due to weaker global capital markets.
General and administrative expenses were US$7.3 million, an increase of 23.0% from US$5.9 million in the same quarter of last year due to an increase in professional service fees.
3
NET LOSS/INCOME attributable to ordinary shareholders of UP Fintech
Net loss attributable to ordinary shareholders of UP Fintech was US$1.8 million, as compared to a net income of US$1.2 million in the same quarter of last year. Net loss per ADS – diluted was US$0.012, as compared to a net income per ADS – diluted of US$0.008 in the same quarter of last year.
Non-GAAP net income attributable to ordinary shareholders of UP Fintech, which excludes share-based compensation and impairment loss from long-term investments, was US$1.1 million, as compared to a US$4.5 million non-GAAP net income attributable to ordinary shareholders of UP Fintech in the same quarter of last year. Non-GAAP net income per ADS – diluted was US$0.007 as compared to a non-GAAP net income per ADS – diluted of US$0.029 in the same quarter of last year.
For the fourth quarter of 2023, the Company’s weighted average number of ADSs used in calculating non-GAAP net income per ADS – diluted was 157,931,785. As of December 31, 2023, the Company had a total of 2,350,504,567 Class A and B ordinary shares outstanding, or the equivalent of 156,700,304 ADSs.
Full Year 2023 Financial Results
REVENUES
Total revenues were US$272.5 million, an increase of 20.9% from US$225.4 million in 2022.
Commissions were US$92.6 million, a decrease of 14.4% from US$108.1 million in 2022, due to a decrease in trading volume in stock.
Financing service fees were US$12.2 million, an increase of 54.1% from US$7.9 million in 2022, primarily due to increased interest rates.
Interest income was US$149.3 million, an increase of 75.3% from US$85.2 million in 2022, primarily due to the increase in margin financing and securities lending activities.
Other revenues were US$18.4 million, a decrease of 23.8% from US$24.2 million in 2022, primarily due to the decrease in IPO distribution incomes.
Interest expense was US$47.0 million, an increase of 151.5% from US$18.7 million in 2022, primarily due to increased interest rates.
OPERATING COSTS AND EXPENSES
Total operating costs and expenses were US$192.7 million, a decrease of 6.0% from US$205.0 million in 2022.
Execution and clearing expenses were US$9.1 million, a decrease of 41.8% from US$15.6 million in 2022 due to lower trading volume.
Employee compensation and benefits expenses were US$100.8 million, a slight decrease of 1.0% from US$101.7 million in 2022.
Occupancy, depreciation and amortization expenses were US$9.4 million, an increase of 4.1% from US$9.0 million in 2022 due to increased rent.
Communication and market data expenses were US$30.8 million, an increase of 13.6% from US$27.1 million in 2022 due to increased IT-related fees.
Marketing and branding expenses were US$20.9 million, a decrease of 37.0% from US$33.1 million in 2022, as we slowed down our marketing campaign due to weaker global capital markets.
General and administrative expenses were US$21.8 million, an increase of 18.9% from US$18.3 million in 2022 due to an increase in professional service fees.
4
NET INCOME attributable to ordinary shareholders of UP Fintech
Net income attributable to ordinary shareholders of UP Fintech was US$32.6 million, as compared to a net loss of US$2.2 million in 2022. Net income per ADS – diluted was US$0.207, as compared to a net loss per ADS – diluted of US$0.014 in 2022.
Non-GAAP net income attributable to ordinary shareholders of UP Fintech, which excludes share-based compensation and impairment loss from long-term investments, was US$42.7 million, as compared to a US$12.7 million non-GAAP net income attributable to ordinary shareholders of UP Fintech in 2022. Non-GAAP net income per ADS – diluted was US$0.270 as compared to a non-GAAP net income per ADS – diluted of US$0.082 in 2022.
CERTAIN OTHER FINANCIAL ITEMS
As of December 31, 2023, the Company’s cash and cash equivalents and term deposits were US$327.7 million, compared to US$278.6 million as of December 31, 2022.
As of December 31, 2023, the allowance balance of receivables from customers was US$1.0 million compared to US$0.7 million as of December 31, 2022, which was due to an increase in our user base and stock price fluctuation.
Conference Call Information:
UP Fintech’s management will hold an earnings conference call at 8:00 AM on March 20, 2024, U.S. Eastern Time (8:00 PM on March 20, 2023, Singapore/Hong Kong Time).
All participants wishing to attend the call must preregister online before they may receive the dial-in numbers. Preregistration may require a few minutes to complete.
Preregistration Information:
Please note that all participants will need to pre-register for the conference call, using the link: https://register.vevent.com/register/BId722344b70ee4bfa8b0f820b554d0858
It will automatically lead to the registration page of “UP Fintech Holding Limited Fourth Quarter And Full Year 2023 Earnings Conference Call”, where details for RSVP are needed.
Upon registering, all participants will be provided in confirmation emails with participant dial-in numbers and personal PINs to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information.
Additionally, a live and archived webcast of the conference call will be available at https://ir.itigerup.com
5
Use of Non-GAAP Financial Measures
In evaluating our business, we consider and use non-GAAP net loss or income attributable to ordinary shareholders of UP Fintech and non-GAAP net loss or income per ADS - diluted as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”). We define non-GAAP net loss or income attributable to ordinary shareholders of UP Fintech as net loss or income attributable to ordinary shareholders of UP Fintech excluding share-based compensation and impairment loss from long-term investments. Non-GAAP net loss or income per ADS - diluted is non-GAAP net loss or income attributable to ordinary shareholders of UP Fintech divided by the weighted average number of diluted ADSs.
We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Non-GAAP net loss or income attributable to ordinary shareholders of UP Fintech enables our management to assess our operating results without considering the impact of share-based compensation and impairment loss from long-term investments. We also believe that the use of these non-GAAP financial measures facilitates investors’ assessment of our operating performance.
These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expenses that affect our operations. Share-based compensation and impairment loss from long-term investments have been and may continue to be incurred in our business and are not reflected in the presentation of non-GAAP net loss or income attributable to ordinary shareholders of UP Fintech. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.
These non-GAAP financial measures should not be considered in isolation or construed as alternatives to total operating expenses, net loss or income attributable to ordinary shareholders of UP Fintech or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review these historical non-GAAP financial measures in light of the most directly comparable GAAP measures. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing our data comparatively. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
About UP Fintech Holding Limited
UP Fintech Holding Limited is a leading online brokerage firm focusing on global investors. The Company’s proprietary mobile and online trading platform enables investors to trade in equities and other financial instruments on multiple exchanges around the world. The Company offers innovative products and services as well as a superior user experience to customers through its “mobile first” strategy, which enables it to better serve and retain current customers as well as attract new ones. The Company offers customers comprehensive brokerage and value-added services, including trade order placement and execution, margin financing, IPO subscription, ESOP management, investor education, community discussion and customer support. The Company’s proprietary infrastructure and advanced technology are able to support trades across multiple currencies, multiple markets, multiple products, multiple execution venues and multiple clearinghouses.
For more information on the Company, please visit: https://ir.itigerup.com.
6
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “might,” “aim,” “likely to,” “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements or expressions. Among other statements, the business outlook and quotations from management in this announcement, the Company’s strategic and operational plans and expectations regarding growth, expansion of its business lines and customer acquisition, and the Company’s plans for future financing of its business contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties, including the earnings conference call. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the cooperation with Interactive Brokers LLC and Xiaomi Corporation and its affiliates; the Company’s ability to effectively implement its growth strategies; trends and competition in global financial markets; changes in the Company’s revenues and certain cost or expense accounting policies; and governmental policies and regulations affecting the Company’s industry and general economic conditions in China, Singapore and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC, including the Company’s annual report on Form 20-F filed with the SEC on April 26, 2023. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. Further information regarding these and other risks is included in the Company’s filings with the SEC.
For investor and media inquiries please contact:
Investor Relations Contact
UP Fintech Holding Limited
Email: ir@itiger.com
7
UP FINTECH HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in U.S. dollars (“US$”))
|
|
As of |
|
|
As of |
|
||
|
|
2022 |
|
|
2023 |
|
||
|
|
US$ |
|
|
US$ |
|
||
Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
277,660,847 |
|
|
|
322,599,616 |
|
Cash-segregated for regulatory purpose |
|
|
1,678,067,682 |
|
|
|
1,617,154,185 |
|
Term deposits |
|
|
945,533 |
|
|
|
896,683 |
|
Receivables from customers (net of allowance of US$696,508 and |
|
|
644,691,190 |
|
|
|
753,361,199 |
|
Receivables from brokers, dealers, and clearing organizations |
|
|
956,945,581 |
|
|
|
541,876,929 |
|
Financial instruments held, at fair value |
|
|
162,535,184 |
|
|
|
428,159,554 |
|
Prepaid expenses and other current assets |
|
|
12,963,375 |
|
|
|
17,936,180 |
|
Amounts due from related parties |
|
|
4,769,475 |
|
|
|
7,987,756 |
|
Total current assets |
|
|
3,738,578,867 |
|
|
|
3,689,972,102 |
|
Non-current assets: |
|
|
|
|
|
|
||
Term deposits |
|
|
— |
|
|
|
4,225,412 |
|
Right-of-use assets |
|
|
13,960,092 |
|
|
|
9,067,885 |
|
Property, equipment and intangible assets, net |
|
|
16,504,065 |
|
|
|
16,429,543 |
|
Goodwill |
|
|
2,492,668 |
|
|
|
2,492,668 |
|
Long-term investments |
|
|
7,928,499 |
|
|
|
7,586,483 |
|
Other non-current assets |
|
|
4,773,925 |
|
|
|
5,282,012 |
|
Deferred tax assets |
|
|
13,122,272 |
|
|
|
10,990,998 |
|
Total non-current assets |
|
|
58,781,521 |
|
|
|
56,075,001 |
|
Total assets |
|
|
3,797,360,388 |
|
|
|
3,746,047,103 |
|
Current liabilities: |
|
|
|
|
|
|
||
Payables to customers |
|
|
2,996,405,447 |
|
|
|
2,913,306,558 |
|
Payables to brokers, dealers and clearing organizations |
|
|
138,620,746 |
|
|
|
114,771,931 |
|
Accrued expenses and other current liabilities |
|
|
37,777,749 |
|
|
|
42,381,946 |
|
Deferred income-current |
|
|
1,800,298 |
|
|
|
819,809 |
|
Lease liabilities-current |
|
|
5,490,079 |
|
|
|
4,133,883 |
|
Amounts due to related parties |
|
|
461,704 |
|
|
|
10,148,142 |
|
Total current liabilities |
|
|
3,180,556,023 |
|
|
|
3,085,562,269 |
|
Convertible bonds |
|
|
154,337,483 |
|
|
|
156,887,691 |
|
Deferred income-non-current |
|
|
388,423 |
|
|
|
— |
|
Lease liabilities- non-current |
|
|
8,390,077 |
|
|
|
4,777,134 |
|
Deferred tax liabilities |
|
|
2,059,748 |
|
|
|
3,397,831 |
|
Total liabilities |
|
|
3,345,731,754 |
|
|
|
3,250,624,925 |
|
Mezzanine equity |
|
|
|
|
|
|
||
Subscriptions receivable from redeemable non-controlling interests |
|
|
(43,496 |
) |
|
|
— |
|
Redeemable non-controlling interest |
|
|
4,685,238 |
|
|
|
6,706,660 |
|
Total Mezzanine equity |
|
|
4,641,742 |
|
|
|
6,706,660 |
|
Shareholders’ equity: |
|
|
|
|
|
|
||
Class A ordinary shares |
|
|
22,213 |
|
|
|
22,528 |
|
Class B ordinary shares |
|
|
976 |
|
|
|
976 |
|
Additional paid-in capital |
|
|
495,705,684 |
|
|
|
505,448,080 |
|
Statutory reserve |
|
|
6,171,627 |
|
|
|
8,511,039 |
|
Accumulated deficit |
|
|
(50,366,734 |
) |
|
|
(19,600,434 |
) |
Treasury Stock |
|
|
(2,172,819 |
) |
|
|
(2,172,819 |
) |
Accumulated other comprehensive loss |
|
|
(2,231,411 |
) |
|
|
(3,232,993 |
) |
Total UP Fintech shareholders’ equity |
|
|
447,129,536 |
|
|
|
488,976,377 |
|
Non-controlling interests |
|
|
(142,644 |
) |
|
|
(260,859 |
) |
Total equity |
|
|
446,986,892 |
|
|
|
488,715,518 |
|
Total liabilities, mezzanine equity and equity |
|
|
3,797,360,388 |
|
|
|
3,746,047,103 |
|
8
UP FINTECH HOLDING LIMITED |
|
|||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
|
|||||||||||||||||||
(All amounts in U.S. dollars (“US$”), except for number of shares (or ADSs) and per share (or ADS) data) |
|
|||||||||||||||||||
|
|
For the three months ended |
|
|
For the years ended |
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|||||
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|||||
Revenues(a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commissions |
|
|
24,929,536 |
|
|
|
23,188,375 |
|
|
|
21,954,587 |
|
|
|
108,118,464 |
|
|
|
92,593,458 |
|
Interest related income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financing service fees |
|
|
2,682,657 |
|
|
|
3,307,720 |
|
|
|
3,174,949 |
|
|
|
7,903,057 |
|
|
|
12,178,838 |
|
Interest income |
|
|
30,442,796 |
|
|
|
38,298,414 |
|
|
|
39,956,315 |
|
|
|
85,150,424 |
|
|
|
149,291,006 |
|
Other revenues |
|
|
5,799,368 |
|
|
|
5,351,702 |
|
|
|
4,895,109 |
|
|
|
24,193,602 |
|
|
|
18,444,293 |
|
Total revenues |
|
|
63,854,357 |
|
|
|
70,146,211 |
|
|
|
69,980,960 |
|
|
|
225,365,547 |
|
|
|
272,507,595 |
|
Interest expense(a) |
|
|
(7,187,936 |
) |
|
|
(12,130,614 |
) |
|
|
(15,995,738 |
) |
|
|
(18,668,523 |
) |
|
|
(46,957,657 |
) |
Total Net Revenues |
|
|
56,666,421 |
|
|
|
58,015,597 |
|
|
|
53,985,222 |
|
|
|
206,697,024 |
|
|
|
225,549,938 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Execution and clearing(a) |
|
|
(4,021,314 |
) |
|
|
(2,372,142 |
) |
|
|
(2,244,785 |
) |
|
|
(15,607,914 |
) |
|
|
(9,084,089 |
) |
Employee compensation and benefits |
|
|
(24,479,754 |
) |
|
|
(25,976,638 |
) |
|
|
(26,458,931 |
) |
|
|
(101,749,440 |
) |
|
|
(100,750,644 |
) |
Occupancy, depreciation and amortization |
|
|
(2,021,735 |
) |
|
|
(2,235,084 |
) |
|
|
(2,190,610 |
) |
|
|
(9,013,467 |
) |
|
|
(9,387,056 |
) |
Communication and market data(a) |
|
|
(7,062,603 |
) |
|
|
(7,579,357 |
) |
|
|
(8,532,128 |
) |
|
|
(27,138,244 |
) |
|
|
(30,831,488 |
) |
Marketing and branding |
|
|
(7,401,281 |
) |
|
|
(5,163,903 |
) |
|
|
(5,790,739 |
) |
|
|
(33,121,767 |
) |
|
|
(20,859,834 |
) |
General and administrative |
|
|
(5,930,497 |
) |
|
|
(5,447,961 |
) |
|
|
(7,293,530 |
) |
|
|
(18,332,557 |
) |
|
|
(21,791,263 |
) |
Total operating costs and expenses |
|
|
(50,917,184 |
) |
|
|
(48,775,085 |
) |
|
|
(52,510,723 |
) |
|
|
(204,963,389 |
) |
|
|
(192,704,374 |
) |
Other (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Others, net |
|
|
(2,122,058 |
) |
|
|
6,725,131 |
|
|
|
(1,664,053 |
) |
|
|
298,150 |
|
|
|
13,148,173 |
|
Income (loss) before income tax |
|
|
3,627,179 |
|
|
|
15,965,643 |
|
|
|
(189,554 |
) |
|
|
2,031,785 |
|
|
|
45,993,737 |
|
Income tax expenses |
|
|
(2,378,919 |
) |
|
|
(2,592,703 |
) |
|
|
(1,498,639 |
) |
|
|
(4,288,665 |
) |
|
|
(12,986,310 |
) |
Net income (loss) |
|
|
1,248,260 |
|
|
|
13,372,940 |
|
|
|
(1,688,193 |
) |
|
|
(2,256,880 |
) |
|
|
33,007,427 |
|
Less: net loss attributable to non-controlling interests |
|
|
(53,236 |
) |
|
|
(21,550 |
) |
|
|
(1,293 |
) |
|
|
(129,215 |
) |
|
|
(98,285 |
) |
Accretion of redeemable non-controlling interests to redemption value |
|
|
(58,776 |
) |
|
|
(144,700 |
) |
|
|
(148,624 |
) |
|
|
(58,776 |
) |
|
|
(542,187 |
) |
Net income (loss) attributable to ordinary shareholders of UP Fintech |
|
|
1,242,720 |
|
|
|
13,249,790 |
|
|
|
(1,835,524 |
) |
|
|
(2,186,441 |
) |
|
|
32,563,525 |
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Unrealized loss on available-for-sale investments |
|
|
(502,903 |
) |
|
|
— |
|
|
|
(450,325 |
) |
|
|
(768,590 |
) |
|
|
(450,325 |
) |
Changes in cumulative foreign currency translation adjustment |
|
|
3,470,152 |
|
|
|
(1,670,923 |
) |
|
|
7,261,631 |
|
|
|
(8,130,208 |
) |
|
|
(545,498 |
) |
Total Comprehensive income (loss) |
|
|
4,215,509 |
|
|
|
11,702,017 |
|
|
|
5,123,113 |
|
|
|
(11,155,678 |
) |
|
|
32,011,604 |
|
Less: comprehensive loss attributable to non-controlling interests |
|
|
(57,597 |
) |
|
|
(20,009 |
) |
|
|
(8,222 |
) |
|
|
(130,783 |
) |
|
|
(92,526 |
) |
Accretion of redeemable non-controlling interests to redemption value |
|
|
(58,776 |
) |
|
|
(144,700 |
) |
|
|
(148,624 |
) |
|
|
(58,776 |
) |
|
|
(542,187 |
) |
Total Comprehensive income (loss) attributable to ordinary shareholders of |
|
|
4,214,330 |
|
|
|
11,577,326 |
|
|
|
4,982,711 |
|
|
|
(11,083,671 |
) |
|
|
31,561,943 |
|
Net income (loss) per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
|
0.001 |
|
|
|
0.006 |
|
|
|
(0.001 |
) |
|
|
(0.001 |
) |
|
|
0.014 |
|
Diluted |
|
|
0.001 |
|
|
|
0.006 |
|
|
|
(0.001 |
) |
|
|
(0.001 |
) |
|
|
0.014 |
|
Net income (loss) per ADS (1 ADS represents 15 Class A ordinary shares): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
|
0.008 |
|
|
|
0.085 |
|
|
|
(0.012 |
) |
|
|
(0.014 |
) |
|
|
0.210 |
|
Diluted |
|
|
0.008 |
|
|
|
0.083 |
|
|
|
(0.012 |
) |
|
|
(0.014 |
) |
|
|
0.207 |
|
Weighted average number of ordinary shares used in calculating net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
|
2,303,576,341 |
|
|
|
2,330,221,225 |
|
|
|
2,336,018,747 |
|
|
|
2,295,154,791 |
|
|
|
2,325,338,439 |
|
Diluted |
|
|
2,330,738,240 |
|
|
|
2,439,248,294 |
|
|
|
2,336,018,747 |
|
|
|
2,295,154,791 |
|
|
|
2,427,268,831 |
|
9
(a) Includes the following revenues, costs and expenses resulting from transactions with related parties as follow:
|
|
For the three months ended |
|
|
For the years ended |
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|||||
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commissions |
|
|
9,582 |
|
|
|
3,898 |
|
|
|
115,236 |
|
|
|
4,001,833 |
|
|
|
122,113 |
|
Interest related income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financing service fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,329,490 |
|
|
|
— |
|
Interest income |
|
|
36,439 |
|
|
|
33,687 |
|
|
|
1,270,287 |
|
|
|
4,795,119 |
|
|
|
1,379,238 |
|
Other revenues |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,805,126 |
|
|
|
— |
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,056,556 |
) |
|
|
— |
|
Execution and clearing |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,751,505 |
) |
|
|
— |
|
Communication and market data |
|
|
(34,650 |
) |
|
|
(39,690 |
) |
|
|
(39,690 |
) |
|
|
(135,117 |
) |
|
|
(150,360 |
) |
10
Reconciliations of Unaudited Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures
(All amounts in U.S. dollars (“US$”), except for number of ADSs and per ADS data)
|
|
For the three months ended December 31, |
|
|
For the three months ended September 30, |
|
|
For the three months ended December 31, |
|
|||||||||||||||||||||||||||
|
|
|
|
|
non-GAAP |
|
|
|
|
|
|
|
|
non-GAAP |
|
|
|
|
|
|
|
|
non-GAAP |
|
|
|
|
|||||||||
|
|
GAAP |
|
|
Adjustment |
|
|
non-GAAP |
|
|
GAAP |
|
|
Adjustment |
|
|
non-GAAP |
|
|
GAAP |
|
|
Adjustment |
|
|
non-GAAP |
|
|||||||||
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|||||||||
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|||||||||
|
|
|
|
|
|
3,101,266 |
|
(1) |
|
|
|
|
|
|
|
2,744,880 |
|
(1) |
|
|
|
|
|
|
|
2,896,312 |
|
(1) |
|
|
||||||
|
|
|
|
|
|
175,000 |
|
(2) |
|
|
|
|
|
|
|
— |
|
(2) |
|
|
|
|
|
|
|
— |
|
(2) |
|
|
||||||
Net income (loss) attributable |
|
|
1,242,720 |
|
|
|
3,276,266 |
|
|
|
4,518,986 |
|
|
|
13,249,790 |
|
|
|
2,744,880 |
|
|
|
15,994,670 |
|
|
|
(1,835,524 |
) |
|
|
2,896,312 |
|
|
|
1,060,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per ADS - |
|
|
0.008 |
|
|
|
|
|
|
0.029 |
|
|
|
0.083 |
|
|
|
|
|
|
0.100 |
|
|
|
(0.012 |
) |
|
|
|
|
|
0.007 |
|
|||
Weighted average number of |
|
|
155,382,549 |
|
|
|
|
|
|
155,382,549 |
|
|
|
162,616,553 |
|
|
|
|
|
|
162,616,553 |
|
|
|
155,734,583 |
|
|
|
|
|
|
157,931,785 |
|
|||
11
Reconciliations of Unaudited Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures
(All amounts in U.S. dollars (“US$”), except for number of ADSs and per ADS data)
|
|
For the year ended December 31, |
|
|
For the year ended December 31, |
|
||||||||||||||||||
|
|
|
|
|
non-GAAP |
|
|
|
|
|
|
|
|
non-GAAP |
|
|
|
|
||||||
|
|
GAAP |
|
|
Adjustment |
|
|
non-GAAP |
|
|
GAAP |
|
|
Adjustment |
|
|
non-GAAP |
|
||||||
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
|
US$ |
|
||||||
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
|
Unaudited |
|
||||||
|
|
|
|
|
|
14,213,841 |
|
(1) |
|
|
|
|
|
|
|
10,147,362 |
|
(1) |
|
|
||||
|
|
|
|
|
|
647,605 |
|
(2) |
|
|
|
|
|
|
|
— |
|
(2) |
|
|
||||
Net (loss) income attributable to ordinary shareholders of |
|
|
(2,186,441 |
) |
|
|
14,861,446 |
|
|
|
12,675,005 |
|
|
|
32,563,525 |
|
|
|
10,147,362 |
|
|
|
42,710,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net (loss) income per ADS - diluted |
|
|
(0.014 |
) |
|
|
|
|
|
0.082 |
|
|
|
0.207 |
|
|
|
|
|
|
0.270 |
|
||
Weighted average number of ADSs used in calculating diluted |
|
|
153,010,319 |
|
|
|
|
|
|
154,915,803 |
|
|
|
161,817,922 |
|
|
|
|
|
|
162,607,678 |
|
||
12