Futu Announces Q2 2023 Results Accelerating Global Expansion and Fuelling Growth in Fund AUM

(Hong Kong - August 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 second quarter ended June 30, 2023 (the "Period").

In the second quarter, Futu's total revenues reached HK$2484.9 million (US$317.1 million), up 42.3% YoY; its non-GAAP net income reached HK$1193.4 million (US$152.3 million), up 73.3% YoY. In terms of business segmentation, its brokerage commission and handling charge income totalled HK$952.6 million (US$121.6 million); interest income hit HK$1405.7 million (US$179.4 million); other income (including income from wealth management and corporate services businesses) amounted to HK$126.6 million (US$16.2 million).

By the end of the second quarter, Futubull and moomoo's users grew 10.1% YoY to 20.5 million; registered clients rose 12.4% YoY to 3.4 million; paying clients increased 14.3% YoY to 1.6 million, with nearly 58,000 newly onboarded in the quarter. As of quarter end, client assets reached US$59.5 billion (HK$466.2 billion). The client retention rate remained high at around 98%.

"In the second quarter, while staying user-oriented and guarding its competitive product capability, Futu sped up its international expedition to empower investors in more countries and regions with technology. In addition to its stable growth in Hong Kong, Futu's sub-brand moomoo achieved a Singapore user base representing nearly one-third of the local adult population. In the quarter, the moomoo app was officially launched in Malaysia, and the brand was recognized by the New York Stock Exchange as a strategic partner, moving a step closer to its vision of becoming an influential global financial services platform. Balanced growth was seen across its three core businesses, with Futu being a leading IPO underwriter by volume and accelerating growth in Futu Money Plus AUM, meeting diversified needs of investors and institutions across different markets. Moving ahead, we look forward to serving more markets with cutting-edge products accompanying investors along their journeys." said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee.

No. 1 Retail Brokerage in HK Providing Sought-After Fund Products

During the Period, Futu maintained steady development in the HK market, reaffirming its position as the No. 1 retail brokerage locally and showcasing its strong product capabilities. The exclusive 24/5 US stock trading feature has received enthusiastic market responses since its launch. The overnight trading volume of US equities leaped 230% as compared to the previous quarter. As rate hikes continued, the fund products under Cash Plus, the cash management tool provided by Futu, were widely accepted by HK investors. 52,000 HK clients invested in the products under Cash Plus during the Period, generating profits totalling HK$300 million.

In response to investors' diverse needs, the Company introduced bracket orders for options/futures, sharpened its multi-leg options trading feature, and offered full access to algorithmic orders (TWAP and VWAP) to local retail investors. Moreover, Futu stepped up to diversify its product offerings by providing family sub-accounts function, and Monthly Stocks Savings Plan, enabling clients invest on a longer-term purpose for their next generations.

The Period saw the client AUM of Futu Money Plus rise 20% QoQ in HK together with enriched fund products, hassle-free fund trading process, and enhanced fund selection capabilities. Apart from advance subscriptions of publicly traded products, Futu's platform also began supporting subscriptions of HKD funds via bank accounts, broadening payment options and fund sources. The smart recommendation module was unveiled on the front page of the Funds tab, presenting the most fitting funds for clients based on their preferences and behaviours.

The Company cooperated with industry leaders to promote investor education. During the second quarter, it hosted nearly 20 offline lectures in partnership with well-known institutions such as JP Morgan and CSOP to share investment knowledge with local investors. Futu's institutional and corporate services brand worked with Hong Kong Investor Relations Association (HKIRA) and CECEP Environmental Consulting Group to release "2023 Investor Relations Research Report - ESG, New Business Cycle & Outstanding IR Practice Research", equipping investors with in-depth market insights.

Global Footprints Expanded to Malaysia, Becoming NYSE's Strategic Partner

Futu's sub-brand moomoo entered Malaysia and was recognized by the New York Stock Exchange as a strategic partner. The stock quotes page and the Markets tab have both been upgraded. Exclusive 24/5 US stock trading was rolled out in Singapore and Australia. Overnight trading made more trading opportunities possible and gave moomoo's product capabilities a further leg up across the globe.

The Company stayed committed to delivering top-notch investor education, reaching advanced users in the US, Singapore, and Australia with premium services. In the second quarter, the click-through rates for Moo Learn's front-page content jumped 20.78% QoQ, and the course completion rate surged by 43.59% QoQ.

Meanwhile, moomoo enhanced localization efforts in its global markets. In the US, it successfully organized a Financial Literacy Month paper trading competition, attracting over 2,500 participants; it also released a report based on its first personal finance survey of moomoo users with an aim to improve their financial literacy. In Australia, moomoo started an ESG research project with Macquarie University Business School and held a national paper trading competition in June. Moomoo AU's CEO gave sharing at the school's postgraduate classes as a guest lecturer as part of the Company's ESG practices.

Resilient Growth in Singapore Secured a User Base Representing Nearly One-Third of Local Adults

The past quarter witnessed a continued increase in moomoo's market penetration in Singapore. Its Singapore users already surpassed 800,000, taking up almost one-third of local adults. Average client assets went up 12.5% versus the previous quarter.

Moomoo Singapore was appointed as a sub-placement agent for the IPO of Pasture Holdings Ltd. and a participating dealer for the IOP of CSOP iEdge Southeast Asia + TECH Index ETF, topped the market in terms of number of subscribers and subscription amount for the two projects respectively. At the same time, the Company partnered with SGX Group to promote Singapore Depository Receipts under the Thailand-Singapore DR Linkage and became its largest trading platform.

Defended No. 1 Position in HK IPO Underwriting and Transformed IR Services

Futu's corporate and institutional services continued to empower the real economy. The Company completed 18 HK IPO projects throughout the first half of 2023, ranking first in the industry according to Wind's statistics. As of quarter end, Futu had provided IPO and IR services for 374 companies, with new IPO partners including YSB, Edianyun, and Luzhu Biotech onboarded in the quarter.

Futu has remained the top IPO underwriter in HK by volume since 2022. Its No. 1 position was further corroborated by winning "Outstanding HK IPO Underwriter" at the 01 Gold Medal Awards by HK01 in the second quarter. During the first half of this year, eight out of the top 10 HK IPOs by funds raised chose Futu as their underwriter, and 20 out of the 31 businesses that went public in HK via IPO received Futu's corporate services (including ESOP, IPO, and investor relations, or "IR" services), a remarkable proportion of approximating 65%.

The Company's IR services were fully upgraded in the second quarter to an all-in-one model encompassing "planning + content + traffic + services". Its roadshow service now covers the entire process from planning to implementation, helping enterprises invite and communicate with professional investors in a precise manner, thus providing them with higher level of convenience. As of quarter end, Futu's ESOP clients totalled 683, representing a 31.6% YoY increase.

Wealth Management AUM Nearly Doubled YoY with Expedited Growth

The second quarter marked another record-breaking period for Futu's wealth management business, with Futu Money Plus client AUM leaping 98.8% YoY to HK$43.49 billion. In particular, the AUM in mutual funds soared 88.5% YoY, and that in alternative investment products (including bonds) skyrocketed 276.8% YoY. In the quarter, sales of structured notes exceeded HK$1 billion.

Futu Money Plus made continuous efforts to strengthen its product lineup, adding BNP Paribas as an issuer, and expanding its product offerings in HK to seven types of notes, including the newly added fund-linked notes, call spread notes, and put spread notes. It also teamed up with Bosera to distribute the first 18-month fixed maturity product in HK, locking in profits for investors in the longer run amidst rate cuts.

In Singapore, moomoo empowered investors with five fund portfolios in different currencies and at different risk levels. The past quarter saw Moomoo Singapore's fund AUM up 41.3% QoQ and fund clients up 30.1% QoQ. Singapore clients who are unverified accredited investors can now subscribe to private investment products, enlarging the client base of this product category. Integrated accounts can authorize fund trading enabling institutional clients such as family offices to manage client assets.

Since its debut in 2019, Futu Money Plus has been continuously refining its product capabilities and growing its client AUM at an increasingly faster speed. It took one year and nine months to reach the first HK$10 billion AUM, whereas the latest HK$10 billion was gained in merely six months. Futu Money Plus concluded the second quarter with 77 world-renowned financial institutions being its partners, including Stepstone, CMB Wing Lung Asset Management Limited and so on. It became Stepstone Group SPRIM's first regional distribution channel in Greater China and launched the first liquidity private equity (PE) fund, a more flexible product addressing the pain points of PE investing—long lock-in periods and unclear withdrawal restrictions.