Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), a leading, tech-driven online brokerage and wealth management platform, has announced its unaudited financial results for the second quarter ending June 30, 2021 (“Q2”).
In Q2, Futu reached several key milestones. The total number of Futu’s paying clients increased to one million, including 100,000 paying clients that came from Singapore. Another major milestone was that the Company’s stock was added to the MSCI Hong Kong Index. In the same quarter, the Company obtained an investment grade long-term issuer credit rating “BBB-” from S&P Global Ratings, becoming the first online broker in the Asia-Pacific region to have obtained this international rating.
Futu’s corporate services experienced strong growth this quarter. Futu I&E’s IPO and IR clients climbed to 186, with its ESOP solution clients reaching 263 as of June 30, 2021. During the first half of 2021, Futu participated in the underwriting or distribution of all Chinese ADR’s secondary listings in Hong Kong, as well as numerous HK$100-billion Hong Kong IPOs, namely Kuaishou Technology, Baidu Inc., Bilibili Inc. and JD Logistics, Inc.
This quarter, Futu’s wealth management business Money Plus partnered with 50 world-renowned asset managers, establishing seven new partnerships in Q2. Total client asset balance under Money Plus was approximately HK$13.8 billion ($1.77 billion USD), up 59.2% YoY as of June 30, 2021.
 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses.
Paying clients reached one million, with 80% of newly acquired clients originating from Hong Kong and other overseas markets
In Q2, Futu’s momentum in revenue growth remained strong with a 129.3% year-over-year increase to $203.1 million, reflecting triple-digit growth for six consecutive quarters. Non-GAAP adjusted net income also saw 126.7% YoY growth, reaching $70.9 million.
Brokerage commission and handling charge income increased by 94.8% YoY to $102.7 million; interest income reached $78.6 million, representing an increase of 193.6%; and other income (including wealth management, enterprise services, etc.) increased by 140.5% YoY to $21.7 million.
As of Q2, Futu reached 15.5 million global users, representing a 66.8% increase YoY; the number of registered clients increased by 142.5% YoY to 2.32 million; and the number of paying clients increased by 230.2% YoY, reaching one million. Futu’s client retention rate remained strong at 98% during the first half of 2021.
It is worth noting that net paying clients tripled YoY to approximately 211,000 (Q2 2020: 65,000). With international expansion continuing to accelerate this past quarter, about 80% percent of newly acquired paying clients resulted from the exponential growth Futu has realized in Hong Kong, Singapore and other overseas markets. As of quarter end, total client assets hit a new high of $64.8 billion (approximately HK$503.2 billion), representing a 253.5% increase YoY. Average client asset balance climbed to about $64,700 (approximately HK$500,000).
The brokerage business maintained steady growth, with total trading volume increasing 104.3% to $169.4 billion. Daily average revenue trades (DARTs) increased by 105.4% YoY to 540,988.
International expansion continued to accelerate, with the number of paying clients in Singapore soaring to 100,000
In Q2, Futu maintained market leadership in Hong Kong, and international expansion continued to accelerate.
In Hong Kong, Futu reinforced its leading position with its diverse investment products, convenient online account opening services, seamless investment experience and trusted reputation among investors of all ages. The number of paying clients in Hong Kong surged by 270% YoY, reflecting three-digit YoY growth for several consecutive quarters. During Hong Kong’s latest round of iBond subscription, Futu received massive support from the market, sharing 12% of total valid applications and 7.5% of the total subscription amount of bonds.
In the US, Futu successfully launched its customized “moomoo Ambassadors” campaign this quarter, as well as other omni-channel marketing strategies. In May, moomoo secured the title sponsorship for Yahoo Finance’s exclusive livestream of the 2021 Berkshire Hathaway Shareholders Meeting. moomoo has gained recognition in the US market for providing a platform where users can join live conversations with industry experts.
Since launching the moomoo app in Singapore in March, Futu has invested in product and service enhancements, including rolling out a local customer support hotline that allows users to stay connected with the market 24 hours a day on trading days and 12 hours per day on non-trading days. To better serve its growing client base, Futu continued to hire local talent to assist in carrying out its global expansion strategy.
Now moomoo is already considered one of the fastest-growing online trading platforms in Singapore and will continue to focus on raising brand awareness among local retail investors and growing its user and client base. In the three months since launching moomoo in Singapore, Futu has amassed over 220,000 users and 100,000 paying clients. Now moomoo has gained tremendous popularity among the local community in Singapore, consistently dominating the top three finance apps in both the App Store and Google Play.
“As an international, tech-driven online brokerage, Futu puts the user experience and needs of its clients first. We are dedicated to driving innovation and providing more user-friendly and state-of-the-art FinTech services to investors. We feel immensely proud of the strong growth we’ve achieved in Singapore and are thankful for all the support we have received from their investing community. Singapore is a key focus of our international expansion strategy, and we are humbled to see that moomoo has attracted such a large customer base in such a short period of time. We are proud of the market traction we’ve gained globally, thanks to our industry-leading products and services,” said Mr. Leaf Hua Li, Futu’s Founder, Chairman, CEO & Chairman of the Technology Committee.
He adds, “Looking ahead, we are devoted to catering to the evolving needs of the Singapore market and look forward to deepening our relationship with local industry partners, while promoting financial literacy and driving innovation within the FinTech industry.”
Supported new enterprises in their IPO or secondary listing journeys, serving nearly 450 corporate clients to date
Our enterprise business, Futu I&E, continued to support corporate clients by connecting companies to investors throughout their entire IPO journey—from IPO distribution to IR & PR services, ESOP services, and building brand trust.
As of quarter end, Futu has provided IPO distribution and IR services to 186 companies, reflecting its competitive strengths in IPO distribution and capturing the upsurge of the IPO frenzy in Hong Kong. Futu I&E participated in the underwriting or distribution of all HK$100-billion IPO listings and Chinese ADRs secondary listings in Hong Kong. As of this quarter, there are 26 companies on Futu’s HK$10B+ ($1.28B+ USD) Subscriptions IPO Roster, including JD Logistics Inc., Angelalign Technology Inc., Nayuki Holdings Ltd. and CARsgen Therapeutics Holdings Ltd.
Futu’s collaborative and engaged community rose to the forefront in Q2, with 600 companies joining the Futu Page, Futu’s enterprise accounts for listed companies, including Haidilao International Holdings Ltd., Sunac China Holdings Ltd., Angelalign Technology Inc., China Unicom (HK) Ltd., and China Gas Holdings Ltd.
“Futu is committed to deepening its presence in the Hong Kong market and has demonstrated its strengths in IPO distribution and IR services. Our mission is to better serve promising Chinese enterprises seeking an IPO or secondary listing in Hong Kong, made possible through our unparalleled solutions and services, which range from IPO subscription, setting up their Futu Page accounts, running virtual roadshows and facilitating briefing sessions. Futu is well-positioned to connect listed companies with high-quality retail investors and facilitate meaningful exchanges about corporate values and business prospects. As more companies look to gain a foothold in the Hong Kong market, working with us will allow those enterprises to step into the spotlight, which will further amplify the value and advantages of the Hong Kong stock market,” said Mr. Li.
As of quarter end, Futu I&E has provided ESOP solutions to 263 corporate clients from various sectors, namely healthcare, consumer retail and leading technology. Futu also added market leaders, such as Yidu Tech Inc., Simcere Pharmaceutical Group Ltd., Pop Mart International Group Ltd., and Nayuki Holdings Ltd. to its client roster. By providing one-stop ESOP services that support companies with scheme design, trust building, vesting and exercising, and foreign exchange registration, Futu I&E has become the preferred ESOP solutions provider in the market.
Wealth management business experienced surge in growth from teaming up with 50 reputable financial institutions
Thanks to the diverse product offering of Futu’s Money Plus—including transparent fund reports, an unparalleled investing experience and zero subscription fees—Futu’s wealth management business has continued to earn clients’ trust. As a result, Futu experienced significant growth, becoming a popular wealth management platform across Hong Kong and other markets. As of quarter end, total client asset balance under Money Plus grew to $1.77 billion, up 59.2% YoY.
In Q2, Futu Money Plus teamed up with 50 reputable financial industry partners and established new partnerships with seven asset managers, including Goldman Sachs Asset Management, Eastspring Investments, UBS Asset Management, Principal Global Investors, Matthews Asia, Columbia Threadneedle Investments and Man Investments.
Additionally, Futu became the sole distributor for the sale and distribution of an exclusive fund last quarter—the ChinaAMC Select Greater China Technology Fund—for those seeking investment in China-related technology companies. Following the exclusive sale of the Hong Kong dollar share of Fullgoal China Small and Medium-Cap Growth Fund, Futu once again obtained the exclusive right to sell products from well-known fund companies, confirming Futu Money Plus’s platform strength and market recognition.
Futu partnered with 11 fund companies to conduct a live roadshow this past quarter, which generated over 2.4 million views. Money Plus also successfully held its first Investment Strategies Webinar, which brought together a group of investing and research experts from several world-renowned asset management institutions, including BlackRock, China Asset Management, Baring, and Harvest, to share investment news, strategies, and perspectives to more than 20,000 viewers.
Futu Money Plus also upgraded its services to further enhance the fund investment experience. Most notably, Futu developed an auto-redemption feature for money market funds, which can be directly used for IPO subscription, trading stocks and funds, paying financing interests and currency exchanges and more seamlessly transitioning idle cash between investing and trading.