SCHEDULE: Xiaomi Reduces Stake in UP Fintech Below 5%

Xiaomi Corporation and its subsidiaries have filed an amendment to their Schedule 13G, indicating they are no longer beneficial owners of more than five percent of UP Fintech Holding Ltd's Class A ordinary shares.

Summary

• Reporting persons, including People Better Limited, Fast Pace Limited, and Xiaomi Corporation, have ceased to be beneficial owners of more than 5% of UP Fintech Holding Ltd's Class A ordinary shares.
• This Amendment No. 1 updates the original Schedule 13G filed on February 13, 2020, and serves as a final exit filing for each Reporting Person.
• People Better Limited beneficially owns 94,054,395 Class A ordinary shares, representing 3.5% of the class.
• Fast Pace Limited and Xiaomi Corporation each beneficially own 110,977,732 Class A ordinary shares, representing 4.1% of the class.
• The ownership for Fast Pace Limited and Xiaomi Corporation includes shares held by People Better Limited and 16,923,337 Class A ordinary shares convertible from a promissory note held by Green Better Limited within 60 days.
• The percentage of class is calculated based on 2,665,529,727 total outstanding Class A ordinary shares on an as-converted basis as of June 30, 2025, as reported by the Issuer's current report on Form 6-K filed on August 27, 2025.

Sentiment

Score: 3

Explanation: The filing indicates a significant investor, Xiaomi Corporation, has reduced its stake in UP Fintech Holding Ltd below the 5% threshold, signaling a potential decrease in confidence or strategic interest. This is generally viewed negatively by the market.

Negatives

• Xiaomi Corporation and its subsidiaries have reduced their beneficial ownership in UP Fintech Holding Ltd to below the 5% threshold, signaling a decreased strategic or financial interest.
• The exit filing indicates a complete cessation of reporting requirements for these entities, potentially removing a significant institutional investor from the shareholder base.

Risks

• A major investor, Xiaomi Corporation, reducing its stake below 5% could be perceived negatively by the market, potentially signaling a lack of confidence in UP Fintech Holding Ltd's future prospects.
• The reduction in ownership might lead to decreased strategic alignment or support from Xiaomi Corporation, which could impact future business collaborations or partnerships.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from UP Fintech Holding Ltd. It primarily reports a change in beneficial ownership by Xiaomi Corporation and its subsidiaries, indicating their reduced stake below the 5% threshold.

Industry Context

The reduction in stake by a major technology company like Xiaomi in a fintech platform like UP Fintech Holding Ltd could reflect a shift in investment strategy, a re-evaluation of the fintech sector, or specific performance considerations related to UP Fintech. It might also indicate a broader trend of large tech companies divesting non-core assets or rebalancing their investment portfolios.

Comparison to Industry Standards

• This filing is a standard regulatory disclosure for a change in beneficial ownership. Without specific financial performance data from UP Fintech or comparable divestment actions from other major investors in similar fintech companies (e.g., Interactive Brokers, Charles Schwab, Futu Holdings), a direct comparison of results is not applicable. The action itself, a reduction below 5%, is a common event in the lifecycle of institutional investments.

Stakeholder Impact

• Shareholders may perceive the reduction in Xiaomi's stake as a negative signal, potentially leading to downward pressure on the stock price.
• Management could face questions regarding the reasons for a major investor's reduced interest and may need to address market concerns.
• Employees, customers, suppliers, and creditors are likely to experience minimal direct impact from this specific filing, but a sustained negative market reaction could indirectly affect these groups.

Next Steps

• The filing states this is the final amendment and constitutes an exit filing for each Reporting Person, meaning no further Schedule 13G filings are expected from these entities regarding UP Fintech Holding Ltd unless their beneficial ownership again exceeds 5%.

Key Dates

Recommendation

While the reduction in Xiaomi's stake below 5% is a negative signal, the filing itself does not provide new fundamental information about UP Fintech's operations or financial health. It primarily reflects a change in an investor's position. A 'hold' recommendation is appropriate as investors should monitor UP Fintech's upcoming financial reports and strategic announcements for more comprehensive insights before making a 'buy' or 'sell' decision based solely on this ownership change.

Keywords

UP Fintech Holding Ltd, Xiaomi Corporation, Schedule 13G, Beneficial Ownership, Stake Reduction, Fintech, Brokerage, Passive Investment