Futu Announces Q1 2024 Results Net Income Up 18% QoQ; Net Increase of Paying Clients Up over 300%

(Hong Kong – 28th May 2024) Futu Holdings Limited (Nasdaq: FUTU) ("Futu" or the "Company"), a leading tech-driven digitalized brokerage and wealth management platform, today announced its unaudited financial results for the first quarter ended March 31, 2024 (the "Period").

In the first quarter, Futu's total revenues reached HK$2,592.5 million (US$331.3 million), up 9.2% QoQ; its non-GAAP net income reached HK$1,121.1 million (US$143.3 million), up 18.0% QoQ. In terms of different businesses, its brokerage commission and handling charge income totaled HK$1,082.1 million (US$138.3 million); interest income reached HK$1,354.2 million (US$173.0 million), up 1.7% QoQ; other income (including income from wealth management and corporate services businesses) amounted to HK$156.2 million (US$19.96 million), up 13.8%.

By the end of the first quarter, Futubull and moomoo's users grew 12.3% YoY to 22.48 million; registered clients rose 15.4% YoY to 3.81 million; paying clients increased 23.5% YoY to 1.887 million. 177,161 new paying clients were added in the quarter, representing a 330.8% increase over the previous year. Over half of the Company's client acquisition goal for 2024 had been achieved in the first quarter. The increase of new paying clients in Hong Kong and Singapore posted double-digit growth. The client retention rate stayed high at above 98%. Client assets reached HK$517.9 billion (US$66.18 billion). Total trading volume approximated HK$1.3 trillion (US$171.1 billion).

The Period witnessed Futu's stable growth in the Hong Kong market with its local operation recorded the largest trading volume among Hong Kong retail brokerages[1]; daily average revenue trades (DARTs) executed by HK and US stock investors saw a sharp quarterly increase, reaching a one-year high; Cash Plus, the Company's money market fund brand, continued to drive its fund business up in Hong Kong. The Company also achieved breakthroughs in overseas markets. The number of new clients acquired in Japan and Canada both doubled. The moomoo app topped several overseas markets by downloads, DAU, and app rating. In April, just six weeks after moomoo entered Malaysia, its registered clients exceeded 100,000; Singapore users surpassed one million. The Company's three core businesses enjoyed sustained growth: AUM of Futu Money Plus nearly hit HK$64 billion; IPO and IR clients totaled 430.

"The rally in US stocks and steadily stabilizing HK stocks have boosted overall investor sentiment and trading volume. Based on our years of operations in Hong Kong, the signal of a potential bull market is expected to drive investment funds and high quality clients, and bring new growth momentum, thus strengthening our leading position in Hong Kong. Our international expedition has accelerated, with breakthroughs achieved across markets. Such development generated high-quality income sources. Meanwhile, we strive to create value for society and promote financial education through technology and our platform. In the future, we'll stay true to our original aspirations to accompany global investors along their investing journey with leading financial technology." said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee.

Secured Leading Position in HK with DARTs by HK and US Stock Investors Hitting RecordsIn the past quarter, Futu maintained its position as the leading retail brokerage in Hong Kong with the highest trading volume. Its trading app Futubull topped the download charts of Hong Kong stock trading apps since 2020, and its DAU also ranked first among its peers in the quarter[2].

With the rally in US equities, the number of US stock investors in Hong Kong, their DARTs and trading volume all reached a one-year high in March. The Hong Kong stock market stabilized during the first quarter, and the DARTs executed by HK stock investors went up 19% QoQ. With rate cuts expected to be delayed, Cash Plus's investors and AUM continued to increase, contributing greatly to the 58% YoY rise in fund AUM in the Hong Kong market.

Futu provides investors with multiple asset allocation options. In addition to its popularity among retail investors, Futu remained a winner at the "HKEX Awards" for five consecutive years, garnering recognition for its active trading of various investment products. In April, the Company launched Japanese stock trading in Hong Kong, further enriching its product lineup and breaking geographical restrictions to offer Hong Kong investors an all-round trading experience and broadened horizons.

Financial education was at the core of Futu's corporate social responsibility commitments. Together with leading global financial institutions and exchanges, Futu held Hong Kong's first retail investment exhibition, Futu Expo, which gathered over 30 expert speakers and over 5,000 investors to promote financial inclusion and investment. It also introduced its first original financial board game, Futu Hero, to over 100 primary schools in Hong Kong and organized the first Futu Hero interschool competition to boost the financial literacy of the next generation.

Overseas Expansion Accelerated and Marked New Milestones
While the Company reinforced its leading position in Hong Kong, its internationalization strategy also yielded fruitful results in the first quarter. Moomoo, Futu's overseas brand, made its way into the global investment ecosystem with remarkable achievements across markets and unstoppable growth momentum.

Moomoo remained the market leader in Singapore, seeing a significant increase in registrations, account opening, and client acquisition and ranking first among local stock trading app by cumulative downloads and DAU for the third quarter running[3]. Its Singapore users surpassed one million in April. Now, one in every three Singapore adults is a moomoo user[4]. The first quarter witnessed the debut of Moomoo Private Wealth in Singapore, which targeted high-net-worth individuals and led to more balanced, healthier structures of fund clients and assets.

Based on its advantages in Singapore, moomoo extended its influence to one of Singapore's neighboring countries. In February, moomoo officially landed in Malaysia and began to support Malaysian and US stock trading. Its local clients exceeded 100,000 in merely six weeks, signifying an enthusiastic market response. According to data.ai, the moomoo app was the number one securities trading app in Malaysia in the last quarter by downloads and DAU[5].

In Japan and Canada, the two markets moomoo entered in the second half of 2023, also showed successful client acquisition. In the first quarter of this year, the net increase of registered clients in the two markets doubled on a quarterly basis. Registered clients in Japan soared 200% QoQ. After launching Japanese stock trading in the quarter, moomoo became a one-stop platform for trading US and Japanese stocks in the local market. In Canada, the net increase of registered clients surged 114% QoQ, and that of paying clients shot up 181% QoQ. Moomoo Canada was approved as a non-trading member of Toronto Stock Exchange (TSX) and TSX Venture Exchange and rang the opening bell at the exchange, winning recognition from local financial institutions.

By the end of the first quarter, total client assets in the US grew 87% YoY. Besides business growth, moomoo's tech innovations and trading features secured numerous awards and patents. In the first quarter, moomoo was granted a patent by the US Patent and Trademark Office for its candlestick pattern recognition method and won "Best Stock Trading App" at the 2024 FinTech Breakthrough Awards. In Australia, at the end of the first quarter, total client assets skyrocketed over 300% YoY. The Company won "Best Investment Platform for Beginners" at the WeMoney Investment Awards again and received "Online Share Trading Casual ASX Investor" and "Online Share Trading Casual ETF Investor" awards at Mozo Experts Choice Awards 2024.

Sustained Growth Across Core Businesses Pushed Revenues Up
Futu's three core businesses continuously contributed to revenue growth.

In the first quarter, AUM of Futu Money Plus increased 72.8% YoY to nearly HK$64 billion, and number of investors with positions in funds increased more than 50%. In particular, the wealth management business in Singapore maintained steady growth, with AUM up 37.1% QoQ and number of investors with positions in funds up nearly 17% QoQ. The success of Futu Money Plus was powered by the diversity and flexibility of its fund products. In the first quarter, it rolled out RMB money market funds in Hong Kong and high-dividend fund portfolios in Singapore to help investors achieve global asset allocations and earn stable dividends. Trading experience was further upgraded after the launch of fast bond trading with 100% order fulfillment in just 8 seconds on average.

As of quarter end, IPO and IR clients of Futu's corporate services had reached 430, up 21.8% YoY, including newly onboarded IPO partners LianLian DigiTech, Wellcell, and Zhongshen Jianye. As the Company kept empowering the real economy, its ESOP clients totaled 721. Futu's investment ecosystem recorded continuous expansion, bridging the communication gap between listed companies and investors. As of quarter end, more than 1,200 public companies had opened a Futu page.

[1] Source: Monthly reports on Hong Kong brokerages' trading volume between January 1 and March 31, 2024, by AiPO (https://aipo.myiqdii.com/broker/index#)
[2] Source: Downloads of stock trading apps in Hong Kong (from App Store and Google Play) from January 1, 2020 and March 31, 2024, recorded on data.ai
[3] Source: Downloads and DAU of stock trading apps in Singapore (from App Store and Google Play) between January 1 and March 31, 2024, recorded on data.ai
[4] Source: According to the latest statistic from Singapore government, the number of residents aged between 20 and 70 reached 2.94 million, accurate as
                      at 27 September 2023.
[5] Source: Downloads and DAU of stock trading apps in Malaysia (from App Store and Google Play) between January 1 and March 31, 2024, recorded on data.ai