Operational highlights of the unaudited financial results for
the second quarter ended June 30,
2021:
- Total revenues in the second quarter increased by 129.3%
year-over-year ("YoY") to $203.1
million, achieving triple-digit growth for six consecutive
quarters.
- Non-GAAP adjusted net income[1] was up 126.7% YoY to
$70.9
million.
- The number of Futu users reached 15.5 million, an increase of
66.8% YoY; the number of registered clients reached 2.32 million,
an increase of 142.5% YoY; the number of Futu's paying clients
reached 1 million an increase of 230.2% YoY.
- During Q2, Futu's total trading volume soared 104.3% YoY to
$169.4 billion.
PALO ALTO, Calif., Aug. 31, 2021 /PRNewswire/ -- Futu Holdings
Limited ("Futu" or the "Company") (Nasdaq: FUTU), a leading, tech-driven online
brokerage and wealth management platform, has announced its
unaudited financial results for the second quarter ending
June 30, 2021 ("Q2").
In Q2, Futu reached several key milestones. The total number of
Futu's paying clients increased to one million, including 100,000
paying clients that came from Singapore. Another major milestone was that
the Company's stock was added to the MSCI Hong Kong Index. In the
same quarter, the Company obtained an investment grade long-term
issuer credit rating "BBB-" from S&P Global Ratings, becoming
the first online broker in the Asia-Pacific region to have obtained this
international rating.
Futu's corporate services experienced strong growth this
quarter. Futu I&E's IPO and IR clients climbed to 186, with its
ESOP solution clients reaching 263 as of June 30, 2021. During the first half of 2021,
Futu participated in the underwriting or distribution of all
Chinese ADR's secondary listings in Hong
Kong, as well as numerous HK$100-billion Hong Kong IPOs, namely Kuaishou
Technology, Baidu Inc., Bilibili Inc. and JD Logistics,
Inc.
This quarter, Futu's wealth management business Money Plus
partnered with 50 world-renowned asset managers, establishing seven
new partnerships in Q2. Total client asset balance under Money Plus
was approximately HK$13.8 billion
($1.77 billion USD), up 59.2% YoY as
of June 30, 2021.
[1] Non-GAAP adjusted net income is
defined as net income excluding share-based compensation
expenses.
|
Paying clients reached one million, with 80% of newly
acquired clients originating from Hong
Kong and other overseas markets
In Q2, Futu's momentum in revenue growth remained
strong with a 129.3% year-over-year
increase to $203.1 million, reflecting triple-digit
growth for six consecutive quarters. Non-GAAP adjusted net income
also saw 126.7% YoY growth, reaching $70.9
million.
Brokerage commission and handling charge income increased by
94.8% YoY to $102.7 million; interest
income reached $78.6 million,
representing an increase of 193.6%; and other income (including
wealth management, enterprise services, etc.) increased by 140.5%
YoY to $21.7 million.
As of Q2, Futu reached 15.5 million global users, representing a
66.8% increase YoY; the number of registered clients increased by
142.5% YoY to 2.32 million; and the number of paying clients
increased by 230.2% YoY, reaching one million. Futu's client
retention rate remained strong at 98% during the first half of
2021.
It is worth noting that net paying clients tripled YoY to
approximately 211,000 (Q2 2020: 65,000). With international
expansion continuing to accelerate this past quarter, about 80%
percent of newly acquired paying clients resulted from the
exponential growth Futu has realized in Hong Kong, Singapore and other overseas markets. As of
quarter end, total client assets hit a new high of $64.8 billion (approximately HK$503.2 billion), representing a 253.5% increase
YoY. Average client asset balance climbed to about $64,700 (approximately HK$500,000).
The brokerage business maintained steady growth, with total
trading volume increasing 104.3% to $169.4
billion. Daily average revenue trades (DARTs) increased by
105.4% YoY to 540,988.
International expansion continued to accelerate, with the
number of paying clients in Singapore soaring to 100,000
In Q2, Futu maintained market leadership in Hong Kong, and international expansion
continued to accelerate.
In Hong Kong, Futu reinforced
its leading position with its diverse investment products,
convenient online account opening services, seamless investment
experience and trusted reputation among investors of all ages. The
number of paying clients in Hong
Kong surged by 270% YoY, reflecting three-digit
YoY growth for several consecutive quarters. During Hong Kong's latest round of iBond
subscription, Futu received massive support from the market,
sharing 12% of total valid applications and 7.5% of the total
subscription amount of bonds.
In the US, Futu successfully launched its customized
"moomoo Ambassadors" campaign this quarter, as well as other
omni-channel marketing strategies. In May, moomoo secured the title
sponsorship for Yahoo Finance's exclusive livestream of the 2021
Berkshire Hathaway Shareholders Meeting. moomoo has gained
recognition in the US market for providing a platform where users
can join live conversations with industry experts.
Since launching the moomoo app in Singapore in March, Futu has invested in
product and service enhancements, including rolling out a local
customer support hotline that allows users to stay connected with
the market 24 hours a day on trading days and 12 hours per day on
non-trading days. To better serve its growing client base, Futu
continued to hire local talent to assist in carrying out its global
expansion strategy.
Now moomoo is already considered one of the fastest-growing
online trading platforms in Singapore and will continue to focus on
raising brand awareness among local retail investors and growing
its user and client base. In the three months since launching
moomoo in Singapore, Futu has
amassed over 220,000 users and 100,000 paying clients. Now moomoo
has gained tremendous popularity among the local community in
Singapore, consistently dominating
the top three finance apps in both the App Store and Google
Play.
"As an international, tech-driven online brokerage, Futu puts
the user experience and needs of its clients first. We are
dedicated to driving innovation and providing more user-friendly
and state-of-the-art FinTech services to investors. We feel
immensely proud of the strong growth we've achieved in Singapore and are thankful for all the support
we have received from their investing community. Singapore is a key focus of our international
expansion strategy, and we are humbled to see that moomoo has
attracted such a large customer base in such a short period of
time. We are proud of the market traction we've gained globally,
thanks to our industry-leading products and services," said Mr.
Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the
Technology Committee.
He adds, "Looking ahead, we are devoted to catering to the
evolving needs of the Singapore
market and look forward to deepening our relationship with local
industry partners, while promoting financial literacy and driving
innovation within the FinTech industry."
Supported new enterprises in their IPO or secondary
listing journeys, serving nearly 450 corporate clients to
date
Our enterprise business, Futu I&E, continued to support
corporate clients by connecting companies to investors throughout
their entire IPO journey—from IPO distribution to IR & PR
services, ESOP services, and building brand trust.
As of quarter end, Futu has provided IPO distribution and IR
services to 186 companies, reflecting its competitive strengths in
IPO distribution and capturing the upsurge of the IPO frenzy in
Hong Kong. Futu I&E
participated in the underwriting or distribution of all
HK$100-billion IPO listings and
Chinese ADRs secondary listings in Hong
Kong. As of this quarter, there are 26 companies on Futu's
HK$10B+ ($1.28B+ USD) Subscriptions IPO Roster, including JD
Logistics Inc., Angelalign Technology Inc., Nayuki Holdings Ltd.
and CARsgen Therapeutics Holdings Ltd.
Futu's collaborative and engaged community rose to the forefront
in Q2, with 600 companies joining the Futu Page, Futu's enterprise
accounts for listed companies, including Haidilao International
Holdings Ltd., Sunac China Holdings Ltd., Angelalign Technology
Inc., China Unicom (HK) Ltd., and China Gas Holdings Ltd.
"Futu is committed to deepening its presence in the Hong Kong market and has demonstrated its
strengths in IPO distribution and IR services. Our mission is to
better serve promising Chinese enterprises seeking an IPO or
secondary listing in Hong Kong,
made possible through our unparalleled solutions and services,
which range from IPO subscription, setting up their Futu Page
accounts, running virtual roadshows and facilitating briefing
sessions. Futu is well-positioned to connect listed companies with
high-quality retail investors and facilitate meaningful exchanges
about corporate values and business prospects. As more companies
look to gain a foothold in the Hong
Kong market, working with us will allow those enterprises to
step into the spotlight, which will further amplify the value and
advantages of the Hong Kong stock
market," said Mr. Li.
As of quarter end, Futu I&E has provided ESOP solutions to
263 corporate clients from various sectors, namely healthcare,
consumer retail and leading technology. Futu also added market
leaders, such as Yidu Tech Inc., Simcere Pharmaceutical Group Ltd.,
Pop Mart International Group Ltd., and Nayuki Holdings Ltd. to its
client roster. By providing one-stop ESOP services that support
companies with scheme design, trust building, vesting and
exercising, and foreign exchange registration, Futu I&E has
become the preferred ESOP solutions provider in the market.
Wealth management business experienced surge in growth
from teaming up with 50 reputable financial
institutions
Thanks to the diverse product offering of Futu's Money
Plus—including transparent fund reports, an unparalleled investing
experience and zero subscription fees—Futu's wealth management
business has continued to earn clients' trust. As a result, Futu
experienced significant growth, becoming a popular wealth
management platform across Hong
Kong and other markets. As of quarter end, total client
asset balance under Money Plus grew to $1.77
billion, up 59.2% YoY.
In Q2, Futu Money Plus teamed up with 50 reputable financial
industry partners and established new partnerships with seven asset
managers, including Goldman Sachs Asset Management, Eastspring
Investments, UBS Asset Management, Principal Global Investors,
Matthews Asia, Columbia Threadneedle Investments and Man
Investments.
Additionally, Futu became the sole distributor for the sale and
distribution of an exclusive fund last quarter—the ChinaAMC Select
Greater China Technology Fund—for those seeking investment in
China-related technology
companies. Following the exclusive sale of the Hong Kong dollar share of Fullgoal China Small
and Medium-Cap Growth Fund, Futu once again obtained the exclusive
right to sell products from well-known fund companies, confirming
Futu Money Plus's platform strength and market recognition.
Futu partnered with 11 fund companies to conduct a live roadshow
this past quarter, which generated over 2.4 million views. Money
Plus also successfully held its first Investment Strategies
Webinar, which brought together a group of investing and research
experts from several world-renowned asset management institutions,
including BlackRock, China Asset Management, Baring, and Harvest,
to share investment news, strategies, and perspectives to more than
20,000 viewers.
Futu Money Plus also upgraded its services to further enhance
the fund investment experience. Most notably, Futu developed an
auto-redemption feature for money market funds, which can be
directly used for IPO subscription, trading stocks and funds,
paying financing interests and currency exchanges and more
seamlessly transitioning idle cash between investing and
trading.
About Futu Holdings Limited
Futu Holdings Limited ("Futu") (Nasdaq: FUTU) is an advanced
technology company transforming the investing experience by
offering a fully digitized brokerage and wealth management
platform. Futu provides investing services – including stock
trading and clearing, margin financing, wealth management, market
data and information, and interactive social features for
Hong Kong, US and China Connect
stocks – to individual investors through its proprietary one-stop
digital platforms, Futubull and moomoo. Futu also provides Employee
Stock Ownership Plan (ESOP) solutions and IPO distribution services
through its enterprise service brand FUTU I&E, with a focus on
providing employee stock ownership plans to corporate clients.
Futu aims to become an influential financial services platform
globally, by building a complete financial technology ecosystem
with the mission of "making investing easier and more
collaborative." For more information about Futu, please visit the
company's official website www.futuholdings.com
About Moomoo Inc.
Headquartered in Palo Alto,
California, Moomoo Inc. is an indirect wholly-owned
subsidiary of Futu Holdings Limited (Nasdaq: FUTU), with its
mission to transform personal investing experience with an
intuitive user interface, fully digitized trading platform in the
US and globally.
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SOURCE Futu Holdings Limited