UP Fintech Holding(US:TIGR)2020-04-29 20:07Financial Position - As of December 31, 2019, the company had US$59.4 million in cash and cash equivalents, with a significant portion in U.S. dollars and Renminbi [658]. - Net cash provided by operating activities in 2019 was US$243.3 million, compared to a net loss of US$5.9 million [664]. - Net cash used in investing activities in 2019 was US$22.0 million, primarily due to the acquisition of a subsidiary and placement of term deposits [667]. - Net cash provided by financing activities in 2019 was US$114.9 million, mainly from the initial public offering [670]. - The company’s capital expenditures were US$1.3 million in 2019, with plans to fund future expenditures from existing cash [672]. Compliance and Regulatory Requirements - The company must maintain net tangible current assets (NTCA) at or above NZ$0.5 million to comply with NZX capital adequacy requirements [653]. - US Tiger Securities, Inc. and Marsco Investment Corporation are required to meet SEC's net capital requirements, ensuring liquidity against risks [654]. - The minimum base capital requirement for Tiger Brokers SG is SGD 1 million, with additional capital requirements based on operational risk [655]. Customer and Revenue Growth - The company experienced an increase of US$481.1 million in payables to customers in 2019, reflecting growth in customer deposits [664]. - The company has not paid dividends from its PRC subsidiaries and will not be able to until they generate accumulated profits [674]. Research and Development - Research and development expenses for 2019 amounted to US$18,033,074, reflecting a significant increase from US$11,282,241 in 2018 and US$6,059,525 in 2017 [677]. Commitments and Obligations - The company has total operating lease commitments of US$6,550,000, with US$2,673,000 due within one year [682]. - Capital commitments related to the acquisition of a company in Hong Kong total US$1,540,555, with US$1,078,389 contracted but not yet paid as of December 31, 2019 [682]. - The company has entered into off-balance sheet arrangements, including margin financing and borrowing agreements, which expose it to market risk due to potential changes in the market value of financial instruments [680]. Compensation and Employee Benefits - The company has not set aside or accrued any amounts for pension or retirement benefits for directors and executive officers, with total compensation for 2019 being approximately US$0.2 million for executive officers and US$0.1 million for non-executive directors [701]. - The company is subject to various statutory contributions for employee benefits, including pension and medical insurance, across its subsidiaries in multiple countries [701]. - The company provides social security benefits to employees in accordance with applicable regulations and internal policies [723]. Corporate Governance - The company has a robust compliance framework, with a Chief Compliance Officer who has over 20 years of experience in international financial institutions [689]. - The compensation committee is responsible for reviewing and approving the compensation structure for directors and executive officers [717]. - The audit committee oversees the accounting and financial reporting processes, including appointing independent auditors [716]. - The board of directors consists of eight directors, with no requirement for directors to hold shares in the company [713]. Shareholder Structure - Xiaomi Corporation holds 250,641,392 Class A shares, representing 13.55% of Class A shares and 2.91% of total voting power [731]. - Tigerex Holding Limited owns 220,486,172 Class A shares, accounting for 11.92% of Class A shares and 2.56% of total voting power [732]. - IB Global Investments LLC possesses 150,760,322 Class A shares, which is 8.15% of Class A shares and 1.75% of total voting power [733]. - ARK Trust (Hong Kong) Limited has 127,026,005 Class A shares, representing 6.87% of Class A shares [734]. - Tianhua Wu, as a director, holds 1,676,666 ADSs, which is 3.07% of Class A shares and 79.98% of Class B shares [735]. - The total percentage of voting power held by all directors and executive officers is 82.54% [738]. - Class A shares are entitled to one vote per share, while Class B shares are entitled to twenty votes per share [739]. - Mr. Tianhua Wu controls approximately 80.3% of the aggregate voting power of the total issued and outstanding share capital [739]. - The company has a dual-class share structure, with Class A and Class B shares having different voting rights [739]. - Binsen Tang has resigned as a director, previously holding 220,486,172 Class A shares through Tigerex Holding Limited [738].