UP Fintech Retaining Restricted Studies Unaudited First Quarter 2022 Monetary Effects | Industry Information

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SINGAPORE, June 10, 2022 (GLOBE NEWSWIRE) — UP Fintech Retaining Restricted (NASDAQ: TIGR) (“UP Fintech” or the “Corporate”), a number one on-line brokerage company that specialize in world traders, nowadays introduced its unaudited monetary effects for the primary quarter ended March 31, 2022.

“The macro atmosphere used to be tougher within the first quarter as opposed to a yr in the past, as traders have been cautious of geopolitical conflicts, prime inflation in Entertainment Weekly Online Loginand Federal Reserve tightening,” mentioned Mr. Wu Tianhua, CEO and Director of UP Fintech, “Overall revenues have been US$52.6 million this quarter, diminished 35.2% yr over yr, basically pushed through a slowdown in buying and selling fee and underwriting earnings, whilst hobby revenue stayed flat because of the slow buildup of self-clearing and securities lending industry within the U.S. On 1 / 4 over quarter foundation, general buying and selling quantity greater through 6.0% with a reasonable uptick in buying and selling commissions.”

We added 30,150 funded accounts this quarter, bringing general choice of funded accounts to 703,500, an build up of 87.1% from the similar quarter remaining yr. Overall consumer belongings diminished yr over yr because of mark-to-market loss, however we noticed sturdy web asset influx of US$3.5 billion this quarter, demonstrates person self belief in our platform even with greater marketplace uncertainty.

We persisted to spend money on analysis and building to reinforce operational potency and to reinforce person revel in. Within the first quarter, we began to self-clear Singapore equities, which can decrease clearing and custodian value for our Singapore customers at some point. For U.S. securities, through the tip of the primary quarter, over 90% of money equities and 70% of choices contracts have been already self-cleared via our U.S subsidiaries. We also are upgrading our Hong Kong infrastructure so we will get started self clearing Hong Kong equities in the following few quarters.  

Our company companies proceed to accomplish in spite of the vulnerable marketplace backdrop. We underwrote 7 U.S. IPOs within the first quarter, making us one of the energetic underwriters for U.S fairness issuance. We additionally added 25 ESOP shoppers within the first quarter and serve 338 ESOP shoppers in general as of March 31, 2022. In wealth control, we persisted so as to add new price range to our Fund Mall to supply customers with diverse funding choices.

Monetary Highlights for First Quarter 2022

  • Overall revenues diminished 35.2% year-over-year to US$52.6 million.
  • Overall web revenues diminished 35.3% year-over-year to US$49.0 million.
  • Internet loss on account of UP Fintech used to be US$5.9 million in comparison to a web revenue of US$21.1 million in the similar quarter of remaining yr.
  • Non-GAAP web loss on account of UP Fintech used to be US$1.9 million, in comparison to a non-GAAP web revenue of US$23.5 million in the similar quarter of remaining yr. A reconciliation of non-GAAP monetary metrics to probably the most similar GAAP metrics is about forth beneath.

Running Highlights for First Quarter 2022

  • Overall account steadiness diminished 29.0% year-over-year to US$15.2 billion.
  • Overall margin financing and securities lending steadiness diminished 27.8% year-over-year to US$1.7 billion.
  • Overall choice of shoppers with deposit greater 87.1% year-over-year to 703,500.

Decided on Running Information for First Quarter 2022

    As of and for the 3 months ended  
    March 31,     December 31,     March 31,  
    2021     2021     2022  
In 000’s                        
Collection of buyer accounts     1,400.2       1,845.9       1,896.2  
Collection of shoppers with deposit     376.0       673.4       703.5  
Collection of choices and futures contracts traded     11,115.3       8,200.3       8,420.4  
In USD tens of millions                        
Buying and selling quantity     123,831.5       85,896.3       91,016.9  
Buying and selling quantity of stocks1     60,919.2       33,302.9       34,700.8  
Overall account steadiness     21,414.6       17,082.5       15,210.3  

_____________________________________________________________________________________________________________________________________________

1 Confer with the disclosure underneath the heading “Adjustments of Running Information Disclosure” beneath for an outline of adjustments to how buying and selling quantity is gifted in comparison to prior quarters.

First Quarter 2022 Monetary Effects

REVENUES

Overall revenues have been US$52.6 million, a lower of 35.2% from US$81.3 million in the similar quarter of remaining yr.

Commissions have been US$30.5 million, a lower of 42.4% from US$52.9 million in similar quarter of remaining yr, because of a lower in buying and selling quantity and marketplace actions.

Financing carrier charges have been US$1.6 million, a lower of 30.1% from US$2.2 million in the similar quarter of remaining yr, basically because of a lower in margin financing and securities lending actions.

Passion revenue used to be US$15.5 million, a slight lower of one.1% from US$ 15.6 million in similar duration of remaining yr.

Different revenues have been US$5.1 million, a lower of 51.1% from US$10.5 million in the similar quarter of remaining yr, basically because of the slowdown in underwriting comparable industry and forex alternate carrier.

Passion expense used to be US$3.7 million, a lower of 34.0% from US$5.5 million in the similar quarter of remaining yr, basically because of hobby expense financial savings from self-clearing and a slowdown of Hong Kong IPO financing.

OPERATING COSTS AND EXPENSES

Overall running prices and bills have been US$54.9 million, an build up of 17.6% from US$46.7 million in the similar quarter of remaining yr.

Execution and clearing bills have been US$4.5 million, a lower of 45.1% from US$8.2 million in the similar quarter of remaining yr because of self-clearing of US money equities and decrease buying and selling quantity.

Worker reimbursement and advantages bills have been US$27.5 million, an build up of 66.9% from US$16.5 million in the similar quarter of remaining yr, as we have now added headcount remaining yr to improve out of the country enlargement.

Occupancy, depreciation and amortization bills have been US$2.0 million, an build up of 68.5% from US$1.2 million in the similar quarter remaining yr because of build up in place of job house and related leasehold enhancements.

Conversation and marketplace knowledge bills have been US$6.4 million, an build up of 61.1% from US$4.0 million in the similar quarter remaining yr, consistent with speedy person enlargement and expanded marketplace knowledge protection.

Advertising and branding bills have been US$10.0 million, a lower of twenty-two.2% from US$12.8 million in the similar quarter remaining yr, as we bogged down advertising spending aimed toward weaker marketplace backdrop.

Common and administrative bills have been US$4.5 million, an build up of 12.2% from US$4.1 million in the similar quarter remaining yr, basically because of greater skilled products and services bills and basic bills on account of industry enlargement.

NET LOSS/INCOME ATTRIBUTABLE TO UP FINTECH HOLDING LIMITED

Internet loss on account of UP Fintech used to be US$5.9 million, as in comparison to a web revenue of US$21.1 million in the similar quarter of remaining yr. Internet loss in keeping with ADS – diluted used to be US$0.039, as in comparison to a web revenue in keeping with ADS – diluted of US$0.143 in the similar quarter of remaining yr.

Non-GAAP web loss on account of UP Fintech, which excludes share-based reimbursement, impairment loss from long-term investments and truthful cost exchange from convertible bonds, used to be US$1.9 million, as in comparison to a US$23.5 million non-GAAP web revenue on account of UP Fintech in the similar quarter of remaining yr. Non-GAAP web loss in keeping with ADS – diluted used to be US$0.013 as in comparison to a non-GAAP web revenue in keeping with ADS – diluted of US$0.159 in the similar quarter of remaining yr.

For the primary quarter of 2022, the Corporate’s weighted moderate choice of ADSs utilized in calculating non-GAAP web loss in keeping with ADS – diluted used to be 151,950,773. As of March 31, 2022, the Corporate had a complete of two,292,492,101 Elegance A and B unusual stocks exceptional, or the an identical of 152,832,807 ADSs.

CERTAIN OTHER FINANCIAL ITEMS

As of March 31, 2022, the Corporate’s money and money equivalents and time period deposits have been US$352.9 million, in comparison to US$272.1 million as of December 31, 2021.

As of March 31, 2022, the allowance steadiness of receivables from shoppers used to be US$0.7 million in comparison to US$0.5 million as of December 31, 2021, which used to be because of an build up in our person base and inventory value fluctuation.

Adjustments of Running Information Disclosure:

For the aim of offering extra related data to facilitate traders’ working out of our industry, the Corporate has made up our minds to give you the choice of contracts traded of choices and futures on a quarterly foundation ranging from this quarter. Traditionally, the Corporate has disclosed general buying and selling quantity of shares, choices and futures (notional quantity) on an combination foundation. Starting this quarter, the Corporate will likely be disclosing the buying and selling quantity of shares on a stand-alone foundation, and can divulge the choice of contracts traded of choices and futures. Because of this transformation, our buying and selling quantity as reported for prior quarters will likely be retrospectively recast to constitute buying and selling quantity of shares on a stand-alone foundation along with buying and selling quantity on an combination foundation. The impact of this recast is illustrated within the desk beneath:

    As of and for the 3 months ended  
    March 31,     December 31,     March 31,  
    2021     2021     2022  
In USD tens of millions                        
Ancient presentation: buying and selling quantity     123,831.5       85,896.3       91,016.9  
New presentation: buying and selling quantity of shares     60,919.2       33,302.9       34,700.8  

We’ve followed this transformation as a result of our control has made up our minds that the choice of choices and futures contracts traded is a extra related metric for working out and managing our industry than the buying and selling quantity of choices and futures introduced on an combination foundation with buying and selling quantity of shares. In long term disclosures of our profits, we predict to document buying and selling quantity of shares and the choice of choices and futures contracts traded in lieu of combination buying and selling quantity. This transformation didn’t impact up to now disclosed running knowledge instead of as described above.

Director Resignation:

Mr. Lei Huang has tendered his resignation as a director of the Corporate, efficient on June 9, 2022, because of private causes. Mr. Huang stays the CEO of US Tiger Securities Inc and TradeUP Securities, Inc. and he’s going to focal point at the Corporate’s industry operation in Entertainment Weekly Online LoginA. His resignation didn’t consequence from any confrontation with the Corporate.

Convention Name Data:

UP Fintech’s control will hang an profits convention name at 8:00 AM on June 10, 2022, U.S. Jap Time (8:00 PM on June 10, 2022 Singapore/Hong Kong Time).

All contributors wishing to wait the decision should preregister on-line prior to they’ll obtain the dial-in numbers. Preregistration might require a couple of mins to finish.        

Preregistration Data:

Contributors might sign in for the convention name through navigating to: 

http://apac.directeventreg.com/registration/match/2768763

As soon as preregistration has been whole, contributors will obtain dial-in numbers, direct match passcode, and registrant identity. The convention ID: is 2768763

To sign up for the convention, merely dial the quantity within the calendar invite you obtain after preregistering, input the passcode adopted through your PIN, and you are going to sign up for the convention in an instant.

A phone replay of the decision will likely be obtainable after the belief of the convention name via June 18, 2022. Dial-in numbers for the replay are as follows:

World: +61 2 90034211

Passcode: 2768763

A are living and archived webcast of the convention name will likely be obtainable at  https://ir.itiger.com.

Use of Non-GAAP Monetary Measures

In comparing our industry, we believe and use non-GAAP web loss or revenue on account of UP Fintech Retaining Restricted and non-GAAP web loss or revenue in keeping with ADS – diluted as supplemental measures to study and assess our running efficiency. The presentation of the non-GAAP monetary measures isn’t meant to be thought to be in isolation or as an alternative choice to the monetary data ready and introduced based on the USA In most cases Authorised Accounting Rules (“U.S. GAAP”). We outline non-GAAP web loss or revenue on account of UP Fintech Retaining Restricted as web loss or revenue on account of UP Fintech Retaining Restricted except for share-based reimbursement, impairment loss from long-term investments and truthful cost exchange from convertible bonds. Non-GAAP web loss or revenue in keeping with ADS – diluted is non-GAAP web loss or revenue on account of UP Fintech Retaining Restricted divided through the weighted moderate choice of diluted ADSs.

We provide those non-GAAP monetary measures as a result of they’re utilized by our control to guage our running efficiency and formulate industry plans. Non-GAAP web loss or revenue on account of UP Fintech Retaining Restricted allows our control to evaluate our running effects with out making an allowance for the have an effect on of share-based reimbursement, impairment loss from long-term investments and truthful cost exchange from convertible bonds. We additionally imagine that the usage of those non-GAAP monetary measures facilitates traders’ review of our running efficiency.

Those non-GAAP monetary measures don’t seem to be outlined underneath U.S. GAAP and don’t seem to be introduced based on U.S. GAAP. Those non-GAAP monetary measures have boundaries as an analytical software. One of the most key boundaries of the usage of those non-GAAP monetary measures is that they don’t mirror all pieces of revenue and bills that impact our operations. Proportion-based reimbursement, impairment loss from long-term investments and truthful cost exchange from convertible bonds were and might proceed to be incurred in our industry and don’t seem to be mirrored within the presentation of non-GAAP web loss or revenue on account of UP Fintech Retaining Restricted. Additional, those non-GAAP monetary measures might range from the non-GAAP monetary data utilized by different firms, together with peer firms, and subsequently their comparison is also restricted.

Those non-GAAP monetary measures will have to now not be thought to be in isolation or construed as choices to general running bills, web loss or revenue on account of UP Fintech Retaining Restricted or every other measure of efficiency or as a trademark of our running efficiency. Buyers are inspired to study those ancient non-GAAP monetary measures in mild of probably the most immediately similar GAAP measures. Those non-GAAP monetary measures introduced right here might not be similar to in a similar fashion titled measures introduced through different firms. Different firms might calculate in a similar fashion titled measures in a different way, proscribing the usefulness of such measures when inspecting our knowledge relatively. We inspire traders and others to study our monetary data in its entirety and now not depend on a unmarried monetary measure.

About UP Fintech Retaining Restricted

UP Fintech Retaining Restricted is a number one on-line brokerage company that specialize in world traders. The Corporate’s proprietary cellular and on-line buying and selling platform allows traders to industry in equities and different monetary tools on more than one exchanges world wide. The Corporate provides cutting edge services in addition to a awesome person revel in to shoppers via its “cellular first” technique, which allows it to higher serve and retain recent shoppers in addition to draw in new ones. The Corporate provides shoppers complete brokerage and value-added products and services, together with industry order placement and execution, margin financing, IPO subscription, ESOP control, investor schooling, neighborhood dialogue and buyer improve. The Corporate’s proprietary infrastructure and complicated era are ready to improve trades throughout more than one currencies, more than one markets, more than one merchandise, more than one execution venues and more than one clearinghouses.

For more info at the Corporate, please discuss with:  https://ir.itiger.com.

Secure Harbor Observation

This announcement comprises ahead−searching statements. Those statements are made underneath the “secure harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. Those ahead−searching statements will also be known through terminology corresponding to “might,” “may,” “intention,” “more likely to,” “will,” “expects,” “anticipates,” “long term,” “intends,” “plans,” “believes,” “estimates” and identical statements or expressions. Amongst different statements, the industry outlook and quotations from control on this announcement, in addition to the Corporate’s strategic and operational plans, comprise ahead−searching statements. The Corporate may additionally make written or oral ahead−searching statements in its periodic stories to the U.S. Securities and Change Fee (“SEC”) on Bureaucracy 20−F and six−Ok, in its annual report back to shareholders, in press releases and different written fabrics and in oral statements made through its officials, administrators or workers to 3rd events, together with the profits convention name. Statements that don’t seem to be ancient details, together with statements in regards to the Corporate’s ideals and expectancies, are ahead−searching statements. Ahead−searching statements contain inherent dangers and uncertainties. A variety of components may motive exact effects to range materially from the ones contained in any ahead−searching commentary, together with however now not restricted to the next: the cooperation with Interactive Agents LLC and Xiaomi Company and its associates; the Corporate’s talent to successfully enforce its enlargement methods; developments and pageant in world monetary markets; adjustments within the Corporate’s revenues and likely value or expense accounting insurance policies; the consequences of the worldwide COVID-19 pandemic; and governmental insurance policies and laws affecting the Corporate’s trade and basic financial stipulations in China, Singapore and different international locations. Additional data relating to those and different dangers is integrated within the Corporate’s filings with the SEC, together with the Corporate’s annual document on Shape 20-F filed with the SEC on April 28, 2022. All data equipped on this press unlock and within the attachments is as of the date of this press unlock, and the Corporate undertakes no legal responsibility to replace any forward-looking commentary, apart from as required underneath acceptable regulation. Additional data relating to those and different dangers is integrated within the Corporate’s filings with the SEC.

For investor and media inquiries please touch:

Investor Family members Touch

UP Fintech Retaining Restricted

E mail: [email protected]

UP FINTECH HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All quantities in U.S. greenbacks (“US$”))

    As of
December 31,
    As of
March 31,
 
    2021     2022  
    US$     US$  
Belongings:                
Money and money equivalents     269,057,708       349,805,441  
Money-segregated for regulatory objective     1,431,827,247       1,772,966,318  
Time period deposits     3,044,461       3,054,318  
Receivables from shoppers (web of allowance of US$518,741 and
US$675,034 as of December 31, 2021 and March 31, 2022)
    664,657,453       613,202,051  
Receivables from agents, sellers, and clearing organizations:                
Similar events     804,639,024        
Others     75,143,153       825,960,699  
Monetary tools held, at truthful cost     3,902,987       5,626,713  
Pay as you go bills and different recent belongings     16,051,623       15,508,929  
Quantities due from comparable events     2,947,871       5,141,174  
Overall recent belongings     3,271,271,527       3,591,265,643  
Non-current belongings:                
Proper-of-use belongings     6,613,520       5,537,458  
Belongings, apparatus and intangible belongings, web     14,031,652       13,940,530  
Goodwill     2,492,668       2,492,668  
Lengthy-term investments     9,777,844       8,839,312  
Different non-current belongings     4,973,085       4,001,683  
Deferred tax belongings     12,258,360       14,050,854  
Overall non-current belongings     50,147,129       48,862,505  
Overall belongings     3,321,418,656       3,640,128,148  
Present liabilities:                
Payables to shoppers     2,509,492,814       2,823,156,568  
Payables to agents, sellers and clearing organizations:                
Similar events     170,338,199        
Others     499,978       175,904,744  
Collected bills and different recent liabilities     33,746,177       36,650,505  
Deferred income-current     1,213,647       1,191,515  
Rent liabilities-current     2,610,041       1,628,525  
Quantities because of comparable events     2,039,287       1,662,927  
Overall recent liabilities     2,719,940,143       3,040,194,784  
Convertible bonds                
Similar events     25,330,766        
Others     123,510,910       152,454,838  
Deferred income-non-current     1,382,091       1,088,225  
Rent liabilities- non-current     3,092,913       2,923,316  
Deferred tax liabilities     1,535,965       1,474,786  
Overall liabilities     2,874,792,788       3,198,135,949  
Shareholders’ fairness:                
Elegance A unusual stocks     20,599       21,948  
Elegance B unusual stocks     2,221       976  
Further paid-in capital     484,335,291       484,694,547  
Statutory reserve     3,562,888       3,562,888  
Accrued deficit     (45,788,131 )     (51,508,913 )
Treasury inventory     (2,172,819 )     (2,172,819 )
Accrued different complete revenue     6,665,819       7,393,572  
Overall shareholders’ fairness     446,625,868       441,992,199  
Overall liabilities and shareholders’ fairness     3,321,418,656       3,640,128,148  
UP FINTECH HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(All quantities in U.S. greenbacks (“US$”), apart from for choice of stocks (or ADSs) and in keeping with percentage (or ADS) knowledge)
    For the 3 months ended  
    March 31,     December 31,     March 31,  
    2021     2021     2022  
    US$     US$     US$  
Revenues(a):                        
Commissions     52,894,103       29,859,784       30,470,318  
Passion comparable revenue                        
Financing carrier charges     2,239,870       2,281,978       1,566,458  
Passion revenue     15,631,913       20,267,624       15,456,486  
Different revenues     10,511,488       9,785,272       5,135,441  
Overall revenues     81,277,374       62,194,658       52,628,703  
Passion expense(a)     (5,532,690 )     (3,831,380 )     (3,650,690 )
Overall Internet Revenues     75,744,684       58,363,278       48,978,013  
Running prices and bills:                        
Execution and clearing(a)     (8,213,722 )     (6,868,211 )     (4,508,760 )
Worker reimbursement and advantages     (16,462,536 )     (28,366,044 )     (27,475,391 )
Occupancy, depreciation and amortization     (1,215,248 )     (1,800,886 )     (2,047,168 )
Conversation and marketplace knowledge(a)     (3,953,961 )     (7,733,877 )     (6,369,107 )
Advertising and branding     (12,803,374 )     (11,594,222 )     (9,956,833 )
Common and administrative     (4,051,434 )     (8,527,769 )     (4,547,384 )
Overall running prices and bills     (46,700,275 )     (64,891,009 )     (54,904,643 )
Different revenue (expense):                        
Others, web     (964,699 )     195,214       (425,643 )
Source of revenue (loss) prior to revenue tax     28,079,710       (6,332,517 )     (6,352,273 )
Source of revenue tax (bills) advantages     (7,023,382 )     953,401       473,690  
Internet revenue (loss)     21,056,328       (5,379,116 )     (5,878,583 )
Internet revenue (loss) on account of UP Fintech Retaining Restricted     21,056,328       (5,379,116 )     (5,878,583 )
Different complete (loss) revenue, web of tax:                        
Unrealized loss on available-for-sale investments                 (265,687 )
Adjustments in cumulative foreign currencies translation adjustment     (235,850 )     1,519,564       993,440  
Overall Complete revenue (loss)     20,820,478       (3,859,552 )     (5,150,830 )
Internet revenue (loss) in keeping with unusual percentage:                        
Fundamental     0.010       (0.002 )     (0.003 )
Diluted     0.010       (0.002 )     (0.003 )
Internet revenue (loss) in keeping with ADS (1 ADS represents 15 Elegance A unusual stocks):                        
Fundamental     0.148       (0.036 )     (0.039 )
Diluted     0.143       (0.036 )     (0.039 )
Weighted moderate choice of unusual stocks utilized in calculating web revenue (loss)
in keeping with unusual percentage:
                       
Fundamental     2,128,130,208       2,266,866,528       2,279,261,602  
Diluted     2,210,465,791       2,266,866,528       2,279,261,602  

(a)   Comprises the next revenues, prices and bills on account of transactions with comparable events as apply:

    For the 3 months ended  
    March 31,     December 31,     March 31,  
    2021     2021     2022  
    US$     US$     US$  
Revenues:                        
Commissions     13,334,528       4,865,912       3,986,037  
Passion comparable revenue                        
Financing carrier charges     2,239,870       2,281,978       1,329,490  
Passion revenue     9,281,680       6,696,241       4,692,011  
Different revenues     5,957,010       2,847,951       1,805,126  
Passion expense     (4,259,765 )     (2,859,934 )     (2,056,556 )
Execution and clearing     (5,908,113 )     (3,348,491 )     (1,751,505 )
Conversation and marketplace knowledge           (25,000 )     (25,000 )

Reconciliations of Unaudited Non-GAAP Result of Operations Measures to the Nearest Similar GAAP Measures

(All quantities in U.S. greenbacks (“US$”), apart from for choice of ADSs and in keeping with ADS knowledge)

    For the 3 months ended March 31,
2021
    For the 3 months ended December 31,
2021
    For the 3 months ended March 31,
2022
 
            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  
              1,799,208   (1 )                   5,455,318   (1 )                   3,459,283   (1 )      
              600,000   (2 )                     (2 )                   472,605   (2 )      
              29,870   (3 )                     (3 )                     (3 )      
Internet revenue (loss) on account of UP Fintech Retaining Restricted     21,056,328       2,429,078       23,485,406       (5,379,116 )     5,455,318       76,202       (5,878,583 )     3,931,888       (1,946,695 )
                                                                         
Internet revenue (loss) in keeping with ADS – diluted     0.143               0.159       (0.036 )             0.000       (0.039 )             (0.013 )
Weighted moderate choice of ADSs utilized in calculating diluted web revenue (loss) in keeping with ADS     147,364,386               147,364,386       151,124,435               161,049,884       151,950,773               151,950,773  

(1)   Proportion-based reimbursement.

(2) Impairment loss from long-term investments

(3) Truthful cost exchange from convertible bonds