Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq:
FUTU), a leading tech-driven online brokerage and wealth
management platform, today announced its unaudited financial
results for the first quarter ended March 31, 2023.
First Quarter 2023 Operational Highlights
- Total number of paying clients1 increased
15.2% year-over-year to 1,528,103 as of March 31, 2023.
- Total number of registered clients2 increased
13.5% year-over-year to 3,304,758 as of March 31, 2023.
- Total number of users3 increased 10.5%
year-over-year to 20.0 million as of March 31, 2023.
- Total client assets increased 20.6%
year-over-year to HK$465.5 billion as of March 31, 2023.
- Daily average client assets were HK$453.0
billion in the first quarter of 2023, an increase of 16.7% from the
same period in 2022.
- Total trading volume in the first quarter of
2023 declined 7.8% year-over-year to HK$1.2 trillion, in
which trading volume for U.S. stocks was HK$827.6 billion, trading
volume for Hong Kong stocks was HK$372.2 billion, and trading
volume for stocks under the Stock Connect was HK$20.0 billion.
- Daily average revenue trades (DARTs)4
in the first quarter of 2023 declined 13.7%
year-over-year to 514,105.
- Margin financing and securities lending
balance increased 35.3% year-over-year to HK$34.5 billion
as of March 31, 2023.
First Quarter 2023 Financial Highlights
- Total revenues increased 52.3% year-over-year
to HK$2,499.9 million (US$318.5 million).
- Total gross profit increased 56.3%
year-over-year to HK$2,209.0 million (US$281.4 million).
- Net income increased 108.4% year-over-year to
HK$1,191.8 million (US$151.8 million).
- Non-GAAP adjusted net income5 increased 103.8%
year-over-year to HK$1,268.0million (US$161.5 million).
Mr. Leaf Hua Li, Futu’s Chairman and Chief
Executive Officer, said, “As of quarter end, total paying clients
grew 15.2% year-over-year to over 1.5 million. Hong Kong market
contributed over one-third of new paying clients in the first
quarter as client acquisition accelerated during the equity market
rally in January. Paying client growth in Singapore remained
resilient as we continued to build brand awareness through offline
investor education events and catered to investor demand for lower
risk fund products. We introduced new products in various markets,
including 24/5 U.S. stock trading in Hong Kong, leveraged foreign
exchange trading in Singapore which enables trading 36 major
currency pairs on margin, and multi-leg options strategy orders for
U.S. stocks in the U.S. As we continued to expand product offerings
and enhance user experience, we recorded another quarter of robust
paying client retention rate of over 98% despite market weakness
and headline regulatory news.”
“Total client assets increased by 20.6%
year-over-year and 11.5% quarter-over-quarter to HK$465.5 billion.
The growth was mainly due to higher market valuation on clients’
stock holdings, and to a lesser extent, net asset inflow. In
Singapore, total client assets and average client assets increased
by 28% and 22% quarter-over-quarter, respectively, attributable to
solid net asset inflow across client cohorts and favorable U.S.
equity market performance.”
“Total trading volume increased 11.9%
sequentially to HK$1.2 trillion. Higher trading turnover in U.S.
technology names led U.S. stock trading volume to increase 22.6%
quarter-over-quarter to HK$827.6 billion. Hong Kong stock trading
volume declined 6.2% sequentially to HK$372.2 billion as the equity
market correction since February weighed on investor sentiments. We
observed elevated margin financing and securities lending
activities around technology stocks, sending the balance up by
29.6% sequentially to HK$34.5 billion at quarter end.”
“Total client assets in wealth management grew
HK$5.4 billion in the quarter to reach HK$37.0 billion,
representing a 77.4% growth year-over-year and 17.2% growth
quarter-over-quarter. In Singapore, we ended the quarter with a 69%
sequential increase in total client assets as money market funds
continued to gain traction. As of quarter end, 15% of our paying
clients in Singapore held wealth management products, up from 1% in
the year-ago quarter. In terms of new product offerings, we
launched bond trading in Singapore and fixed coupon notes (FCNs)
and digital notes for professional investors in Hong Kong, which
led to a five-fold jump in structured product asset balance.”
“We had 353 IPO distribution and IR clients as
well as 662 ESOP clients as of quarter end, up 37% and 44%
year-over-year, respectively. We acted as joint lead managers for
several high-profile HK IPOs, including those of Beauty Farm
Medical and Health Industry Inc. and YH Entertainment Group.”
“We are also pleased to announce that our
wholly-owned Malaysia subsidiary, Futu Malaysia Sdn. Bhd., has
received the approval-in-principle for the Capital Markets Services
License (CMSL) from the Securities Commission Malaysia (SC). We
look forward to tapping into the immense market opportunity in
Malaysia and further strengthening our presence in the Southeast
Asian market.”
First Quarter 2023 Financial Results
Revenues
Total revenues were HK$2,499.9 million (US$318.5
million), an increase of 52.3% from HK$1,641.0 million in the first
quarter of 2022.
Brokerage commission and handling charge income
was HK$1,079.3 million (US$137.5 million), an increase of 11.6%
from the first quarter of 2022. This was mainly driven by an
increase in blended commission rate from 7.3bps to 8.8bps.
Interest income was HK$1,294.3 million (US$164.9
million), an increase of 125.0% from the first quarter of 2022. The
increase was mainly driven by higher interest income from bank
deposits and securities borrowing and lending business.
Other income was HK$126.3 million (US$16.1
million), an increase of 28.5% from the first quarter of 2022. The
increase was primarily driven by higher fund distribution service
income.
Costs
Total costs were HK$290.8 million (US$37.0
million), an increase of 27.5% from HK$228.0 million in the first
quarter of 2022.
Brokerage commission and handling charge
expenses were HK$72.2 million (US$9.2 million), a decrease of 24.8%
from the first quarter of 2022. Brokerage commission expenses
didn’t grow in tandem with brokerage commission and handling
charges mainly due to cost savings from our U.S. self-clearing
business.
Interest expenses were HK$130.8 million (US$16.7
million), an increase of 233.7% from the first quarter of 2022. The
increase was mainly driven by higher expenses associated with our
securities borrowing and lending business.
Processing and servicing costs were HK$87.7
million (US$11.2 million), a decrease of 5.4% from the first
quarter of 2022. The decrease was primarily attributable to lower
cloud service fee as a result of system optimization.
Gross Profit
Total gross profit was HK$2,209.0 million
(US$281.4 million), an increase of 56.3% from HK$1,413.0 million in
the first quarter of 2022. Gross margin was 88.4%, as compared to
86.1% in the first quarter of 2022.
Operating Expenses
Total operating expenses were HK$804.1 million
(US$102.4 million), an increase of 7.5% from HK$748.3 million in
the first quarter of 2022.
Research and development expenses were HK$354.9
million (US$45.2 million), an increase of 25.7% from the first
quarter of 2022. This was primarily due to an increase in research
and development headcount to support overseas expansion and new
product offerings.
Selling and marketing expenses were HK$141.3
million (US$18.0 million), a decrease of 51.0% from HK$288.1
million in the first quarter of 2022. With stable customer
acquisition costs on a year-over-year basis, the decrease was due
to slower new paying client growth.
General and administrative expenses were
HK$307.9 million (US$39.2 million), an increase of 73.3% from the
first quarter of 2022. The increase was primarily due to an
increase in general and administrative personnel to support
overseas expansion.
Net Income
Net income increased by 108.4% to HK$1,191.8
million (US$151.8 million) from HK$571.8 million in the first
quarter of 2022. Net income margin for the first quarter of 2023
expanded to 47.7% from 34.8% in the year-ago quarter mainly due to
strong topline growth and lower selling and marketing expenses.
Non-GAAP adjusted net income increased by 103.8%
to HK$1,268.0 million (US$161.5 million) from the first quarter of
2022. Non-GAAP adjusted net income is defined as net income
excluding share-based compensation expenses. For further
information, see "Use of Non-GAAP Financial Measures" at the bottom
of this press release.
Net Income per ADS
Basic net income per American Depositary Share
(“ADS”) was HK$8.54 (US$1.09), compared with HK$3.88 in the first
quarter of 2022. Diluted net income per ADS was HK$8.44 (US$1.08),
compared with HK$3.85 in the first quarter of 2022. Each ADS
represents eight Class A ordinary shares.
Conference Call and Webcast
Futu's management will hold an earnings
conference call on Wednesday, May 24, 2023, at 7:30 AM U.S. Eastern
Time (7:30 PM on the same day, Beijing/Hong Kong Time).
Please note that all participants will need to
pre-register for the conference call, using the
linkhttps://register.vevent.com/register/BIf9fb3ba33f3744a7957ee8e9db99e918.
It will automatically lead to the registration page of "Futu
Holdings Ltd First Quarter 2023 Earnings Conference Call", where
details for RSVP are needed.
Upon registering, all participants will be
provided in confirmation emails with participant dial-in numbers
and personal PINs to access the conference call. Please dial in 10
minutes prior to the call start time using the conference access
information.
Additionally, a live and archived webcast of
this conference call will be available
athttps://ir.futuholdings.com/.
About Futu Holdings Limited
Futu Holdings Limited (Nasdaq: FUTU) is an
advanced technology company transforming the investing experience
by offering fully digitalized financial services. Through its
proprietary digital platforms, Futubull and moomoo, the Company
provides a full range of investment services, including trade
execution and clearing, margin financing and securities lending,
and wealth management. The Company has embedded social media tools
to create a network centered around its users and provide
connectivity to users, investors, companies, analysts, media and
key opinion leaders. The Company also provides corporate services,
including IPO distribution, investor relations and ESOP solution
services.
Use of Non-GAAP Financial
Measures
In evaluating the business, the Company
considers and uses non-GAAP adjusted net income, a non-GAAP
measure, as a supplemental measure to review and assess its
operating performance. The presentation of the non-GAAP financial
measure is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with U.S. GAAP. The Company defines non-GAAP adjusted
net income as net income excluding share-based compensation
expenses. The Company presents the non-GAAP financial measure
because it is used by the management to evaluate the operating
performance and formulate business plans. Non-GAAP adjusted net
income enables the management to assess the Company's operating
results without considering the impact of share-based compensation
expenses, which are non-cash charges. The Company also believes
that the use of the non-GAAP measure facilitates investors'
assessment of its operating performance.
Non-GAAP adjusted net income is not defined
under U.S. GAAP and is not presented in accordance with U.S. GAAP.
This non-GAAP financial measure has limitations as analytical
tools. One of the key limitations of using non-GAAP adjusted net
income is that it does not reflect all items of expense that affect
the Company's operations. Share-based compensation expenses have
been and may continue to be incurred in the business and is not
reflected in the presentation of non-GAAP adjusted net income.
Further, the non-GAAP measure may differ from the non-GAAP
information used by other companies, including peer companies, and
therefore their comparability may be limited.
The Company compensates for these limitations by
reconciling the non-GAAP financial measure to the nearest U.S. GAAP
performance measure, all of which should be considered when
evaluating the Company's performance.
For more information on this non-GAAP financial
measure, please see the table captioned "Unaudited Reconciliations
of Non-GAAP and GAAP Results" set forth at the end of this press
release.
Exchange Rate Information
This announcement contains translations of
certain HK dollars (“HK$”) amounts into U.S. dollars ("US$") at
specified rates solely for the convenience of the reader. Unless
otherwise stated, all translations from HK$ to US$ were made at the
rate of HK$7.8499 to US$1.00, the noon buying rate in effect on
March 31, 2023 in the H.10 statistical release of the Federal
Reserve Board. The Company makes no representation that the HK$ or
US$ amounts referred could be converted into US$ or HK$, as the
case may be, at any particular rate or at all.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the "safe harbor"
provisions of the United States Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. Among other things, the quotations from the management
team of the Company, contain forward-looking statements. Futu may
also make written or oral forward-looking statements in its
periodic reports to the SEC, in its annual report to shareholders,
in press releases and other written materials and in oral
statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including
statements about Futu's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: Futu's goal and strategies; Futu's expansion plans;
Futu's future business development, financial condition and results
of operations; Futu's expectations regarding demand for, and market
acceptance of, its credit products; Futu's expectations regarding
keeping and strengthening its relationships with borrowers,
institutional funding partners, merchandise suppliers and other
parties it collaborate with; general economic and business
conditions; and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in Futu's filings with the SEC. All information provided
in this press release and in the attachments is as of the date of
this press release, and Futu does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
For investor inquiries, please
contact:
Investor RelationsFutu Holdings
Limitedir@futuholdings.com
___________________________
1 The number of paying clients refers to the
number of clients with assets in their trading accounts with Futu.2
The number of registered clients refers to the number of users who
open one or more trading accounts with Futu.3 The number of users
refers to the number of user accounts registered with Futu.4 The
number of Daily Average Revenue Trades (DARTs) refers to the number
of average trades per day that generate commissions or fees.5
Non-GAAP adjusted net income is defined as net income excluding
share-based compensation expenses.
FUTU HOLDINGS LIMITED UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS(In
thousands, except
for share and
per share
data) |
|
|
As of December 31, |
|
As of March 31, |
|
2022 |
|
2023 |
|
2023 |
|
HK$ |
|
HK$ |
|
US$ |
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
5,028,898 |
|
7,349,761 |
|
936,287 |
Cash held on behalf of
clients |
50,685,472 |
|
54,350,481 |
|
6,923,716 |
Restricted cash |
1,215 |
|
1,213 |
|
155 |
Term deposit |
5,860 |
|
4,610 |
|
587 |
Short-term investments |
675,064 |
|
935,485 |
|
119,172 |
Securities purchased under
agreements to resell |
32,000 |
|
47,000 |
|
5,987 |
Loans and advances-current
(net of allowance of HK$27,840 thousand and HK$36,081 thousand as
of December 31, 2022 and March 31, 2023, respectively) |
26,676,358 |
|
29,883,720 |
|
3,806,892 |
Receivables: |
|
|
|
|
|
Clients |
513,358 |
|
369,757 |
|
47,103 |
Brokers |
5,914,963 |
|
7,633,002 |
|
972,369 |
Clearing organizations |
3,066,953 |
|
4,000,959 |
|
509,683 |
Fund management companies and fund distributors |
79,086 |
|
108,379 |
|
13,806 |
Interest |
254,310 |
|
236,939 |
|
30,184 |
Prepaid assets |
28,507 |
|
35,250 |
|
4,491 |
Other current assets |
102,258 |
|
105,455 |
|
13,434 |
Total current
assets |
93,064,302 |
|
105,062,011 |
|
13,383,866 |
|
|
|
|
|
|
Operating lease right-of-use
assets |
196,864 |
|
202,996 |
|
25,860 |
Long-term investments |
239,694 |
|
237,574 |
|
30,265 |
Loans and advances -
non-current |
36,765 |
|
32,016 |
|
4,079 |
Other non-current assets |
965,205 |
|
1,034,009 |
|
131,724 |
Total non-current
assets |
1,438,528 |
|
1,506,595 |
|
191,928 |
Total
assets |
94,502,830 |
|
106,568,606 |
|
13,575,794 |
LIABILITIES |
|
|
|
|
|
Amounts due to related parties |
52,725 |
|
|
60,144 |
|
|
7,662 |
|
Payables: |
|
|
|
|
|
Clients |
57,209,066 |
|
|
60,955,393 |
|
|
7,765,117 |
|
Brokers |
11,815,274 |
|
|
17,938,684 |
|
|
2,285,212 |
|
Clearing organizations |
51,867 |
|
|
223,542 |
|
|
28,477 |
|
Fund management companies and fund distributors |
90,801 |
|
|
98,616 |
|
|
12,563 |
|
Interest |
9,864 |
|
|
17,844 |
|
|
2,273 |
|
Borrowings |
2,480,532 |
|
|
3,237,038 |
|
|
412,367 |
|
Lease liabilities -
current |
109,416 |
|
|
111,018 |
|
|
14,143 |
|
Accrued expenses and other
current liabilities |
1,706,159 |
|
|
1,596,086 |
|
|
203,326 |
|
Total current
liabilities |
73,525,704 |
|
|
84,238,365 |
|
|
10,731,140 |
|
|
|
|
|
|
|
Lease liabilities -
non-current |
101,727 |
|
|
105,823 |
|
|
13,481 |
|
Other non-current
liabilities |
13,620 |
|
|
13,704 |
|
|
1,746 |
|
Total non-current
liabilities |
115,347 |
|
|
119,527 |
|
|
15,227 |
|
Total
liabilities |
73,641,051 |
|
|
84,357,892 |
|
|
10,746,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
|
Class A ordinary shares |
68 |
|
|
68 |
|
|
9 |
|
Class B ordinary shares |
29 |
|
|
29 |
|
|
4 |
|
Additional paid-in
capital |
18,154,442 |
|
|
18,233,956 |
|
|
2,322,827 |
|
Treasury stock |
(4,324,565 |
) |
|
(4,358,424 |
) |
|
(555,220 |
) |
Accumulated other
comprehensive (loss)/income |
(47,846 |
) |
|
63,586 |
|
|
8,100 |
|
Retained earnings |
7,079,416 |
|
|
8,271,459 |
|
|
1,053,702 |
|
Total shareholders'
equity |
20,861,544 |
|
|
22,210,674 |
|
|
2,829,422 |
|
|
|
|
|
|
|
Non-controlling interest |
235 |
|
|
40 |
|
|
5 |
|
Total
equity |
20,861,779 |
|
|
22,210,714 |
|
|
2,829,427 |
|
Total liabilities and
equity |
94,502,830 |
|
|
106,568,606 |
|
|
13,575,794 |
|
|
|
|
|
|
|
FUTU HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In
thousands, except for share and per share data) |
|
|
For the Three Months Ended |
|
March 31,2022 |
|
March 31,2023 |
|
March 31,2023 |
|
HK$ |
|
HK$ |
|
US$ |
Revenues |
|
|
|
|
|
Brokerage commission and handling charge income |
967,466 |
|
|
1,079,311 |
|
|
137,494 |
|
Interest income |
575,222 |
|
|
1,294,260 |
|
|
164,876 |
|
Other income |
98,316 |
|
|
126,282 |
|
|
16,087 |
|
Total
revenues |
1,641,004 |
|
|
2,499,853 |
|
|
318,457 |
|
Costs |
|
|
|
|
|
Brokerage commission and
handling charge expenses |
(95,989 |
) |
|
(72,246 |
) |
|
(9,203 |
) |
Interest expenses |
(39,225 |
) |
|
(130,840 |
) |
|
(16,668 |
) |
Processing and servicing
costs |
(92,741 |
) |
|
(87,724 |
) |
|
(11,175 |
) |
Total
costs |
(227,955 |
) |
|
(290,810 |
) |
|
(37,046 |
) |
Total gross
profit |
1,413,049 |
|
|
2,209,043 |
|
|
281,411 |
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
Research and development
expenses |
(282,449 |
) |
|
(354,899 |
) |
|
(45,211 |
) |
Selling and marketing
expenses |
(288,145 |
) |
|
(141,278 |
) |
|
(17,997 |
) |
General and administrative
expenses |
(177,742 |
) |
|
(307,893 |
) |
|
(39,223 |
) |
Total operating
expenses |
(748,336 |
) |
|
(804,070 |
) |
|
(102,431 |
) |
|
|
|
|
|
|
Others, net |
(20,325 |
) |
|
(7,732 |
) |
|
(985 |
) |
|
|
|
|
|
|
Income before income
tax expense and share of loss from equity method
investments |
644,388 |
|
|
1,397,241 |
|
|
177,995 |
|
|
|
|
|
|
|
Income tax expense |
(72,548 |
) |
|
(201,701 |
) |
|
(25,695 |
) |
Share of loss from equity
method investments |
- |
|
|
(3,695 |
) |
|
(471 |
) |
|
|
|
|
|
|
Net
income |
571,840 |
|
|
1,191,845 |
|
|
151,829 |
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
Ordinary shareholders of the
Company |
571,840 |
|
|
1,192,043 |
|
|
151,854 |
|
Non-controlling interest |
- |
|
|
(198 |
) |
|
(25 |
) |
|
571,840 |
|
|
1,191,845 |
|
|
151,829 |
|
Net income per share
attributable to ordinary shareholders of the Company |
|
|
|
|
|
Basic |
0.49 |
|
1.07 |
|
|
0.14 |
|
Diluted |
0.48 |
|
1.06 |
|
|
0.13 |
|
|
|
|
|
|
|
Net income per
ADS |
|
|
|
|
|
Basic |
3.88 |
|
8.54 |
|
|
1.09 |
|
Diluted |
3.85 |
|
8.44 |
|
|
1.08 |
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing net income per
share |
|
|
|
|
|
Basic |
1,178,742,697 |
|
1,116,767,496 |
|
|
1,116,767,496 |
|
Diluted |
1,189,523,422 |
|
1,129,538,989 |
|
|
1,129,538,989 |
|
|
|
|
|
|
|
Net
income |
571,840 |
|
1,191,845 |
|
|
151,829 |
|
Other comprehensive
income, net of tax |
|
|
|
|
|
Foreign currency translation
adjustment |
44,289 |
|
111,435 |
|
|
14,196 |
|
Total comprehensive
income |
616,129 |
|
1,303,280 |
|
|
166,025 |
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
Ordinary shareholders of the
Company |
616,129 |
|
1,303,475 |
|
|
166,050 |
|
Non-controlling interest |
- |
|
(195 |
) |
|
(25 |
) |
|
616,129 |
|
1,303,280 |
|
|
166,025 |
|
|
|
|
|
|
|
|
|
FUTU HOLDINGS LIMITEDUNAUDITED
RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS(In
thousands) |
|
|
For the Three Months Ended |
|
March 31,2022 |
|
March 31,2023 |
|
March 31,2023 |
|
HK$ |
|
HK$ |
|
US$ |
|
|
|
|
|
|
Net income |
571,840 |
|
1,191,845 |
|
151,829 |
Add: Share-based compensation
expenses |
50,388 |
|
76,110 |
|
9,696 |
Adjusted net income |
622,228 |
|
1,267,955 |
|
161,525 |
|
|
|
|
|
|
Non-GAAP to GAAP reconciling items have no income tax
effect.
Futu (NASDAQ:FUTU)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Futu (NASDAQ:FUTU)
Gráfica de Acción Histórica
De May 2023 a May 2024