Futu Holdings Announces Unaudited Financial Summary for the Third Quarter of 2021
On November 24, 2021, Beijing time, leading digital fintech companies —$Futu Holdings Ltd (FUTU.US)$ (Nasdaq: FUTU) announced unaudited financial results for the third quarter of 2021.
Operational highlights for the third quarter of 2021
• Number of clients with assetsThe year-on-year increase was 179.2% to 1,167,204 people.
• Number of customers who have opened accountsA year-on-year increase of 119.9% to
2,580,002 people.
• Number of registered usersThe year-on-year increase was 58.6% to 16.6 million people.
• Customer assets at the end of the periodThe year-on-year increase was 111.0% to HK$423.9 billion.
• Average daily customer assets for the quarterThe year-on-year increase was 146.3% to HK$444.1 billion.
• Total trading volumeThe year-on-year increase was 33.1% to HK$1.4 trillion, of which the trading volume of US stocks was HK$680.5 billion, the trading volume of Hong Kong stocks was HK$605.8 billion, and the trading volume of A-share Connect was HK$62.6 billion.
• Average number of daily profit transactions (DARts)The year-on-year increase of 52.2% to 576,810 transactions.
• Securities financing balance at the end of the periodThe year-on-year increase was 151.0% to HK$31.7 billion.
Financial highlights for the third quarter of 2021
• Total revenueYear-on-year increase of 83.0% to US$222.4 million (HK$1,731.1 million)
• Total gross profit increased 91.6% yoy to US$188 million (HK$1,463.8 million)
• net profitYoY increase of 53.1% to US$79 million (HK$615.2 million)
• Non-GAAP net profitYoY increase of 58.5% to US$83 million (HK$646.1 million)
Li Hua, founder, chairman, CEO and technical committee chairman of Futu, said, “Despite the challenging macroeconomic environment in the third quarter, our number of asset customers recorded steady growth, and financial indicators increased month-on-month.”
“In the third quarter, we had a net increase in the number of asset customers by about 166,000, and the number of asset customers at the end of the period reached 1.2 million, an increase of 179.2% over the previous year. Among them, organic traffic continues to contribute most of our net increase in asset customers. This is also the seven consecutive quarters where we received more than half of the net increase in asset customers through organic traffic. The quarterly customer retention rate was 97% due to weak market performance.”
“In Singapore, we iterate on different customer incentives through various channels and adjust budgets between branding and performance marketing to further optimize our customer acquisition strategies. As can be seen, thanks to the continuous diversification of Singaporean product categories, including US stock IPOs, structured warrants, and fund products, etc., the retention rate of Singaporean customers is high and asset inflows are strong. We are one of the most popular online brokerage firms in Hong Kong. Our registered users in Hong Kong account for about 1/3 of Hong Kong's adult population. Our growth strategy in Hong Kong is to further infiltrate young and tech-savvy people and reach more potential customers through a series of precision marketing.”
“As of the end of the quarter, client assets reached HK$423.9 billion, up 111% year on year and 15.8% month on month. The decline was mainly due to a decline in the market, but this effect was also partly offset by a steady inflow of net assets. Despite the uncertain market environment, thanks to strong net asset inflows, Singapore's total customer assets and average customer assets both achieved month-on-month growth of 52.4% and 11.5%, respectively. The total transaction volume for the third quarter reached HK$1.4 trillion, up 33.1% year on year and 2.7% month on month.”
“In the third quarter, we reached cooperation with 6 well-known institutions, including Schroder Investment Management and Carlyle Investment Group. At the end of the period, Futu Elephant Wealth cooperated with 56 world-renowned financial institutions. Futu Elephant Wealth's asset management scale reached a record high, reaching HK$17.7 billion, an increase of 132.4% over the previous year and an increase of 28.5% over the previous year. Among them, private equity fund client assets increased 135% month-on-month. This is mainly due to the fact that we launched alternative investment funds in the third quarter and cooperated with well-known fund companies to launch online wealth management seminars for high-net-worth clients. As of the end of this quarter, Futu Elephant Wealth held more than 115,000 positions, accounting for about 10% of the total number of asset customers.
“As of the end of this quarter, Futu's IPO distribution and IR service customers reached 215, and the cumulative number of ESOP option management contracted customers was 325, up 165.4% and 157.9% year-on-year respectively. In the third quarter, a number of leading new economy enterprises, including Bubble Mart, BYD shares, and JD Health, entered Futu Niuquan Enterprise, and shared business news and interacted with individual investors through corporate accounts. By the end of this quarter, more than 700 companies had successfully entered Futu Niuquan, including more than 150 companies with a market capitalization of more than HK$10 billion.”
Forward-looking statements
This press release contains forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act 1995. Forward-looking statements generally include words such as “will,” “anticipate,” “anticipate,” “anticipate,” “future,” “plan,” “believe,” “estimate,” and other similar expressions. Statements and other information from the company's management team include forward-looking statements. Additionally, Futu may also make written or oral forward-looking statements in regular reports to the US Securities and Exchange Commission, annual reports to shareholders, press releases and other written materials, and oral statements from management, board members, or employees to third parties. All statements that are not factual in history, including statements about the beliefs and expectations of Futu, etc. are forward-looking statements. Forward-looking statements involve a range of risks and uncertainties. The impact of various factors may cause actual results to differ significantly from forward-looking statements, including, but not limited to, the following: Futu's goals and strategies; Futu's expansion plans; Futu's future business development, financial conditions, and operating results; Futu's expectations of market demand and acceptance of its credit products; Futu's expectations of maintaining and strengthening relationships with borrowers, institutional financing partners, suppliers, and other partners; the macroeconomic and business environment; and assumptions based on or relating to any of the above. More information on these and other risks is included in Futu's filings with the US Securities and Exchange Commission. Furthermore, all information in this press release and its annexes represents information as of the date of publication of this press release. Futu is not responsible for updating any forward-looking statements unless required by law.
The above information comes from Futu Holdings' unaudited financial report for the third quarter of 2021. Please refer to the original English version.
For more information, please visit Futu Holdings' official investor relations website:
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