Futu Holdings Limited Q2 FY2025 earnings call

• Total funded accounts reached ~2.9 million, +41% y-o-y, +8% q-o-q; over 50% of funded accounts from outside Hong Kong.
• Acquired 204,000 new funded accounts, up 32% y-o-y; Hong Kong led in new funded accounts for 3rd quarter.
• International expansion: Singapore, US, Malaysia, Japan, etc. showing growth. Launched crypto trading in most US states, moomoo AI rolled out globally.
• Total client assets hit record HKD 974 billion, +68% y-o-y, +17% q-o-q.
• Trading volume HKD 3.59 trillion, +121% y-o-y, +12% q-o-q.
• Wealth management client assets HKD 163.2 billion, +104% y-o-y, +17% q-o-q.
• IPO distribution and IR clients 517, up 15% y-o-y; strong retail distribution capabilities.

Total revenue was HKD 5.3 billion, up 70% from HKD 3.1 billion in Q2 2024. Brokerage commission and handling charge income was HKD 2.6 billion, up 87% y-o-y and 12% q-o-q. Interest income was HKD 2.3 billion, up 44% y-o-y and 11% q-o-q. Other income was HKD 444 million, up 176% y-o-y and 41% q-o-q. Total costs were HKD 671 million, up 13% y-o-y. Gross profit was HKD 4.6 billion, up 82% y-o-y. Net income was HKD 2.6 billion, up 113% y-o-y and 20% q-o-q.

• Full year target for new funded accounts is 800,000; first half achieved 460,000.
• Expect steady Q-on-Q net new funded accounts in Q3; positive mark-to-market impact and net asset inflow expected to drive client AUM growth.
• Confident in achieving full year new funded accounts target.

Q: Congrats on good results. What's the reason for strong net asset inflow in H1 and how to maintain momentum? Also, color on crypto trading clients and volume, and new products in H2?

A: Asset inflow due to market performance and enriched product offerings. Crypto asset value at Q2 end HKD 4 billion, +40% q-o-q. Plans for crypto transfer in/out, new product pipelines, and feasibility studies for new markets.

Q: Mid- to long-term strategic views on crypto business and Japan market?

A: Crypto strategy includes real-world assets, advanced tech, convergence, and exchange. Japan market has competitive landscape; moomoo has unique value proposition. Launched U.S. options trading, supported USD deposits, saw high engagement.

Q: Color on Q3 client acquisition, net asset inflow, trading volume; and U.S. market plan?

A: Expect steady Q-on-Q net new funded accounts in Q3. U.S. market has positive flywheel, new partnerships, product innovation like crypto trading and moomoo AI.

Q: Regional mix of client acquisition in Q2 and impact of Mainland Chinese client onboarding regulations?

A: Hong Kong and Malaysia accounted for over 50% of new client acquisitions in Q2. Confident in achieving full year 800,000 new fund accounts target; no meaningful impact from new regulations.

Q: Interest income divergence and trend in Q3; reason for strong growth in other income?

A: Interest income not significantly impacted by HIBOR drop due to factors like increased short interest and client cash positions. Other income growth driven by fund distribution and FX income; expects momentum to continue.