Futu Announces First Quarter 2023 Results. Becoming a Go-to Platform for Diverse Investment Products Trusted by over 40% of HK Adults

Hong Kong - May 24, 2023 - Futu Holdings Limited (Nasdaq: FUTU) ("Futu" or the "Company"), a leading tech-driven digitalized brokerage and wealth management platform, today announced its unaudited financial results for the first quarter ended March 31, 2023 (the "Period").

In the first quarter, Futu's total revenues reached HK$2,499.9 million (US$318.5 million), up 52.3% YoY; its non-GAAP1[1] net income reached HK$1,268.0 million (US$161.5 million), up 103.8% YoY. In terms of different businesses, its brokerage commission and handling charge income amounted to HK$1,079.3 million (US$137.5 million); interest income reached HK$1,294.3 million (US$164.9 million); other income (including income from wealth management and corporate services businesses) totaled HK$126.3 million (US$16.1 million).

By the end of the first quarter, Futubull and moomoo's users went up 10.5% YoY to 20.02 million; registered clients grew by 13.5% YoY to 3.3 million; paying clients increased by 15.2% YoY to 1.528 million, with 41,000 newly added in the quarter. As of the quarter end, client assets reached US$59.3 billion (HK$465.5 billion). The client retention rate remained high at around 98%.

"We accelerated our continuous efforts in product innovation while cultivating the international markets in the first quarter. Boosting the growth of our three core businesses, we expanded and enriched our investing ecosystem pooling together over 20 million users. Futu's Hong Kong users take up over 40% of the local adult population, and the proportion is still climbing, solidifying our position as the largest retail brokerage in the market. Our corporate and retail businesses also registered excellent growth. In the quarter, Futu served as an underwriter for nine IPOs in Hong Kong, ranking first among brokerages.[2] Firmly embracing our mission and vision, we will integrate our internationalization strategies with localized operations to empower more enterprises and investors with advanced financial technology." said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee.

Enhanced Product Features Win Trust of over 40% HKers, Making It the Go-to Platform for Diverse Products

During the Period, Futu grew its presence in the Hong Kong market to a significant user base covering over 40% of local adults. The Company bolstered its product mix to serve increasingly agile clients with AUM in funds and bonds soaring 65% and nearly 300% respectively.

Futu HK clinched five awards from the Hong Kong Exchange (HKEX) for its outstanding performance in driving liquidity in several products. Futu tops the lists of retail brokers for Futures & Options, Currency Futures, Weekly Index Options, and Stock Futures & Options and has become a Top Breakthrough Broker for ETP (Exchange Traded Products) Turnover. As it got users exposed to various investment products, Futu has become the go-to platform for local investors.

The Company continued its product innovation during the Period, including enabling exclusive 24/5 US stock trading in the Hong Kong market, freeing investors from the traditional trading hours so they could seize trading opportunities anytime. Multi-leg options trading for US stocks and P/L analysis for funds were also launched to enhance trading capabilities and help investors make better decisions. Moreover, Earnings Calendar was upgraded to include companies listed in Australia and Japan, and an Options page was added in the Markets tab, equipping investors with access to a broader range of products and strategies.

Corporate social responsibility has always been high on Futu's agenda. In the first quarter, Futu joined hands with Make-A-Wish International again to hold the first charity outing event after the maskwearing mandate was lifted. Entry-level financial knowledge was taught in the form of game playing. The Company published "Futu Investor Report - Investment Preferences and Financial Freedom", which discussed the investment behaviors of Hong Kong investors and sharpened readers' understanding of wealth management, drawing wide attention from society. In addition, Futu organized numerous offline seminars to promote financial literacy in the city.

Enriched Product Offerings in SG plus Sustained Growth Momentum of Wealth Management Business

Moomoo relentlessly advanced its product offerings in Singapore in the first quarter by offering OTC bonds trading including USD sovereign bonds and corporate bonds, supporting P/L analysis for HK/US/SG stocks, A-shares, and futures, and officially launching leveraged forex trading. The enhancement in trading capabilities boosted the trading frequency of the paying clients with a higher retention rate, whose average assets grew by 22.4% QoQ.

In the Singapore market, wealth management AUM jumped 69.3% QoQ, and the number of fund investors increased by 33.8% QoQ. Cash Plus, moomoo's flagship product in the first quarter, saw its AUM surge 66% as compared to the previous quarter, as it satisfied investors' need to hedge against inflation with higher returns from cash management.

During the Period, moomoo's brand image in Singapore got further burnished. Moomoo Singapore received its first certification from Great Place to Work, a recognition of its commitment to driving talent development, building a diversified and inclusive workplace, and promoting gender equality in leadership. The Company released its first Singapore Women Financial Fitness report, presenting a full landscape of local women's financial literacy and empowering more women with investing skills and financial confidence. Meanwhile, Moomoo Singapore continued to host offline lectures and workshops regularly in partnerships with universities, creating a platform for college students to build up investing knowledge.

Strengthening Brand Influence and Product innovation Capability in Global Expansion

The first quarter witnessed deeper integration of Futu's internationalization strategies and localized operations. In Australia, moomoo won the “Best for Beginners award” at WeMoney Investment Awards 2023, which further boosted its brand influence. In collaboration with reputable accounting firm Hall Chadwick, moomoo rolled out a series of events to introduce professional trading platforms and services to partners. As for product features, the Company included AU stocks in the paper trading feature, which armed Australian investors with better trading capabilities.

In the US market, moomoo successfully held the Holiday Magic Sweepstakes promotion and the Chinese New Year online campaign with overwhelming market attention. During the Period, moomoo began offering multi-leg options trading for US stocks to mobile app users. Thanks to the 11 options strategies, investors can enjoy a more customized investing experience.

Corporate Services Achieve Unceasing Growth, Becoming No. 1 HK IPO Underwriter by Volume

Futu's corporate services business continued empowering the real economy. As of quarter end, Futu had provided IPO and IR services for over 353 enterprises. The newly onboarded Hong Kong IPO partners included Beauty Farm, Pagoda, and YUE HUA Entertainment.

According to Wind, Futu served as an underwriter for nine Hong Kong IPO projects in the first quarter, ranking first in the industry. Among companies that went public in Hong Kong via IPO during the Period, the Top 3 by funds raised were all Futu's clients. Besides, the Top 3 IPOs by market capitalization and 83% IPOs with a market capitalization over HK$5 billion all collaborated with Futu.

By the end of the Period, Futu's ESOP clients had reached 662, a yearly increase of 44.2%, with clients such as ZKH, GoodMe, and Atour newly added in the quarter.

The Company has been internationalizing its ESOP services. It empowered more public companies and SMEs in Singapore, including new clients such as iWOW during the Period. Its IR services were refined as well, which now cover four core scenarios—earnings release, disclosure of significant events, new product launch, and crisis communications, helping corporates deliver value to target groups with an integrated communications strategy.

Wealth Management Business Stays on Fast Track as New Products Meet Diversified Needs

This quarter concluded with a strong momentum of growth for the wealth management business. Futu Money Plus client AUM soared 77.4% YoY to HK$37.02 billion. In particular, AUM in mutual funds leaped 70.2% YoY, and AUM in alternative products (including bonds) skyrocketed 215% YoY.

New products launched during the Period seamlessly met the users' needs. In the Hong Kong market, two types of structured notes, namely dual currency notes and fixed coupon notes (FCN) were added to its powerful product lineup. FCN has been one of the most favored types in the structured note market. Two sought-after banking products aimed primarily at stable dividend payouts were launched to cater to investors with low and moderate risk tolerance.

Futu Money Plus also introduced a tactical asset allocation strategy, providing asset allocations for clients in line with Merrill Lynch's Clock. Among clients who have invested in non-money market fund units, nearly 30% have used the Company's in-house research content and analysis service.

Futu Money Plus strived to extend and deepen its cooperation with world-renowned financial institutions. As of the quarter end, it had entered partnerships with 74 fund houses. During the Period, Futu successfully invited top asset management firm Allianz Group to participate in its Spring Investment Outlook session for the first time, in which they analyzed the future of artificial intelligence. The session was a great success as it attracted multiple institutions and brought a groundbreaking growth of 1274% YoY to the subscription amount of non-money market funds.

[1]Non-GAAP net income refers to net income with the stock-based compensation expense deducted.

[2]Source: Data from Wind