On November 23, 2023 Beijing time, leading digital financial technology company Futu Holdings (Nasdaq: FUTU) announced its unaudited financial statements for the third quarter of 2023.
In the third quarter, Futu's total revenue was HKD 2.65 billion (approximately USD 339 million), an increase of 36.2% year-on-year; Non GAAP achieved a net profit of HKD 1.158 billion (approximately $148 million), a year-on-year increase of 43.7%. From a sub project perspective, Q3 transaction commission and handling fee income is HKD 1.009 billion (approximately USD 129 million), interest income is HKD 1.505 billion (approximately USD 192 million), and other income (including wealth management, corporate service business, etc.) is HKD 137 million (approximately USD 18 million).
As of the end of the third quarter, the number of registered users of Futu Niuniu and Moomoo App reached 21.09 million, a year-on-year increase of 10.1%; The number of customers who opened accounts at Futu reached 3.49 million, a year-on-year increase of 11.4%; The total number of clients with assets reached 1.65 million, a year-on-year increase of 14.2%. In the third quarter, there was a net increase of 65000 asset customers, with customer assets reaching 59.777 billion US dollars (approximately HKD 468.1 billion) at the end of the period. During the period, the customer retention rate remained at a high level of over 98%.
In the third quarter, Futu's international footprint expanded further. Facing global investors, its brand Moomoo has successively exhibited in the Japanese and Canadian markets, and has become the top securities firm in the Singapore market in key public indicators such as cumulative download volume and DAU. The brand image is more three-dimensional globally. During the period, Futu continued to steadily develop in the Hong Kong market, and its first "Futu physical store" officially opened in Hong Kong. In addition, the three major business sectors of Futu have developed in synergy. According to Wind data, Futu Enterprise Services has consistently ranked first in the number of IPO cooperation projects in the Hong Kong stock market since 2022. Futu Elephant Wealth Asset Management has also exceeded HKD 50 billion in the third quarter, demonstrating a more balanced and healthy asset structure.
Founder and Chairman of Futu Holdings Li Hua, CEO and Chairman of the Technical Committee, said: We visited the markets of Japan and Canada in the third quarter, and Futu's internationalization process has taken another step forward. We have always hoped to empower global investors in more countries and regions, using different languages, and in different investment markets with the power of technology, so that Moomoo can embrace global investors and truly realize Futu's vision of becoming a significant global financial service platform
The investment categories in the Hong Kong market are diverse, and now Jinbao * products are highly sought after
In the third quarter, Futu's leading position in the Hong Kong market was stable, and it once again ranked first in Hong Kong's stock trading application download volume. During the period, Futu opened its first "Futu physical store" in Hong Kong, using an approximately 372 square meter physical investor interaction and learning space to bring Futu and users closer in an offline form for the first time.
In the third quarter, Futu provided investors with more diverse asset allocation options. Under the high interest market conditions, the cash wealth management tool provided by Futu to investors, the Cash Treasure product, is highly favored by customers due to its low threshold, good returns, and strong flexibility. During the period, the position amount of Cash Treasure doubled year-on-year, and the number of positions in the Hong Kong market increased by nearly 40% during the same period.
In the Hong Kong market, Futu actively participated in the issuance of government bonds, with nearly 2500 applications for silver bonds during the period, with a total subscription amount of nearly HKD 430 million; At the same time, the effective subscription amount of Green Bond in Futu accounts for about 50% of the total subscription amount of securities firms in Hong Kong, once again confirming Futu's position as one of the industry's preferred investment platforms.
In the third quarter, Futu insisted on fulfilling its corporate social responsibility and launched its first investment and wealth management board game - "Futu Chess Talent", attracting nearly 500 children and parents to participate in the opening trial. Through the game, more children are willing to learn financial knowledge and can also be exposed to reasonable financial values.
Singapore ranks first in multiple key indicators, exhibiting in the Canadian and Japanese markets, and expanding its international footprint
In the third quarter, Futu deepened its business development for global investors, expanding its international footprint while enhancing its more localized operating methods and gaining more recognition.
In the third quarter, Futu's overseas independent brand Moomoo officially launched in the Japanese and Canadian markets, further expanding its international footprint. As of the end of the third quarter, moomoomoo has been operating in the Singapore market for two and a half years. According to data.ai data (formerly App Annie), moomoomoo has ranked first in the local securities industry in terms of cumulative download volume, DAU, and other public key indicators. During the period, moomoo was ranked first in the Best Customer Service Award of Technology Securities. At the end of the third quarter, the number of assets owned by Moomoo in the Singapore market increased by over 25% year-on-year.
While increasing user recognition, Moomoo has gained recognition from various sectors of society and more age groups in Singapore. During the period, Moomoo held its flagship offline event in Singapore, MooFest, which received strong support from the Singapore Stock Exchange (SGX), the Singapore Securities Investment Association (SIAS), and multiple fund companies; And participated in the Invest Fair to further deepen the recognition and identification of middle-aged and elderly investors towards the brand.
Moomoo has further expanded the coverage of investor education courses for global investors. Providing high-quality localized educational content in new markets such as Malaysia, Canada, and Japan has gained more user choices. Among them, the number of users participating in investment education classrooms in the Japanese market increased by over 30% month on month in the third quarter. In the third quarter, Moomoo gained more recognition, and the Nasdaq and Singapore exchanges settled in the Moo community. During the period, the UGC of Moo community increased by nearly 60% month on month, with the growth of high-quality UGC in the United States region being more significant.
In the US market, Moomoo's influence continues to increase and won the Best Mobile App award in the August 2023 Business Finance category in the third quarter. During the period, the Moomoo US team participated in the 5th China US Business Forum held by Forbes and shared investment insights during the offline sharing session of Black Woman Invest, resulting in a more three-dimensional brand image.
In the Australian market, Moomoo has appeared in mainstream Australian financial media as the preferred platform for trading US stocks, and has established deep cooperation with Money Magazine to continuously increase media exposure; At the same time, in collaboration with Australian investment advisory firm SIAA (Stockbrokers and Investment Advisers Association), an online lecture targeting professional investment advisors has been launched, enhancing Moomoo's influence in the vertical sector; In order to cultivate the concept of investing in finance among young people, Moomoo, after Macquarie University, further enters the classroom of Newcastle University and shares the future with the younger generation.
The proportion of high net worth clients in wealth management has increased, and the variety of products is constantly enriched
In the third quarter, the wealth management business continued to grow rapidly, with the asset management scale of Futu Elephant reaching HKD 51.9 billion, a year-on-year increase of 99.9%. The AUM of public funds increased by 85.9% year-on-year, and the AUM of alternative investment products (including bonds) increased by 284.6% year-on-year. Among them, the latest increase in asset management scale of HKD 10 billion only took more than two months, with institutional and high net worth clients contributing over 50%, indicating that the fund clients and asset structure of Futu Elephant Wealth are more balanced and healthy.
In the third quarter, all categories of Futu Elephant Wealth saw stable growth. During the period, the AUM of structured products increased by over 50% month on month; In terms of bonds, the subscription amount increased by 86% month on month, mainly from the purchase of US treasury bond bonds; Alternative assets saw a month on month growth of over 60%, with nearly half of the growth generated through investment research services (such as hot weather indicators) and tool products (such as US Treasury calculators).
During the period, Futu Elephant Wealth completed the automated marketing of customer lifecycle and the penetration of bank card buying fund scenarios, achieving continuous optimization of the multi-dimensional profit making effect of AUM. Among them, the bank card buying fund function has brought a cumulative increase of HKD 170 million in new investment. After the launch of this function in the Singapore market, the proportion of users has increased by 10 percentage points. During the period, Moomoo's asset size in Singapore increased by 61.7% month on month, and its holdings increased by 28.8% month on month.
During the period, Futu Elephant Wealth continued to enrich its product range. Moomoo (Singapore) supported treasury bond products for the first time. The products can cover different periods from 5 months to 20 years, which can meet the investment needs of different customers in different durations; At the same time, structured notes have been customized for issuance in the Singapore market, and the trading of Singapore dollar bonds has also begun to be supported; Moomoo has launched the TAMP platform (Momentum) for the first time in the Singapore market, providing one-stop, online, and multi category wealth management services to its high net worth clients.
During the period, Futu Elephant Wealth continued to explore and deepen cooperation with internationally renowned financial institutions. As of the end of the period, Futu Elephant Wealth has collaborated with 78 globally renowned financial institutions.
Futu Hong Kong's IPO underwriting number once again ranked first, with upgraded IR services and deep deconstruction of corporate value
Futu's enterprise service business continues to empower the real economy. As of the end of the third quarter, Futu has provided IPO and investor relationship services to 391 companies, with multiple new IPO partners including KEEP, Tuhu Yangche, Fourth Paradigm, and Arnold Pharmaceutical added during the period.
According to Wind data, as of the third quarter of 2023, Futu has completed a total of 26 Hong Kong stock IPO cooperation projects, ranking first in the industry in terms of quantity. Since 2022, Futu has always ranked first in the number of Hong Kong stock IPO cooperation projects. In the third quarter, among the Hong Kong stock IPO projects, projects with the top 3 issuance scale chose to cooperate with Futu. As of the end of the period, Futu Enterprise Services has signed a total of 699 ESOP customers, a year-on-year increase of 22.2%.
In the third quarter, the new form of Fortunair IR service was officially launched, and an upgraded version of the "Executive Face to Face" program was created through a live chat model between analysts and enterprises on the bull market, with the aim of deeply deconstructing corporate value. During the period, Futu and Barron Weekly jointly released the second evaluation of "CFO Elite 100 of Hong Kong and US Listed Chinese Companies", covering over 100 well-known Hong Kong and US listed companies, to deeply explore the role transformation and leadership enhancement of enterprise managers.
*Cash Treasure is a collective term for the Futu Money Fund brand. The products under the Cash Treasure brand mainly invest in bank fixed deposits, government short-term bonds, etc.
**Data source: Comparison of downloads of Hong Kong stock trading applications (including Apple and Google) from January 1 to September 30, 2023, based on data.ai (formerly App Annie)
***Data source: According to data.ai (formerly App Annie), as of the end of the third quarter of 2023, a comparison was made between mainstream securities firms in the Singapore market