Futu Holdings Limited American Depositary Shares 2026 Q2 Earnings Call

Thank you for joining us today to discuss our second quarter 2026 earnings results. Joining me on the call today are Mr. Leaf Li, Chairman and Chief Executive Officer, Arthur Chen, Chief Financial Officer, and Robin Xu, Senior Vice President. As a reminder, today's call may include forward-looking statements, which represent the company's belief regarding future events, which, by their nature, are not certain and are outside of the company's control. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. For more information about the potential risks and uncertainties, please refer to the company's filings with the SEC, including its annual report. With that, I will now turn the call over to Leaf. Leaf will make his comments in Chinese and I will translate.

Thank you all for joining our earnings call today. In the second quarter, we acquired 252,000 net new funded accounts, up 23.7% year-over-year and 12.2% quarter-over-quarter. Total funded accounts reached approximately 3.84 million, representing an increase of 33.6% year-over-year and 7% quarter-over-quarter.

Client acquisition in Hong Kong accelerated sequentially during the quarter, supported by a robust local IPO pipeline and strong performance in U.S. equities. In Singapore, registered users surpassed the 2 million milestone, further solidifying our leadership among local retail investors. The average revenue per new client in both markets improved sequentially, underpinned by our ongoing investor education initiatives across multiple asset classes, reinforced by our sustained investment in brand equity.

In Malaysia, our targeted marketing campaigns centered around local IPOs and the AI-driven rally catalyzed a record quarter of client acquisitions, leading all markets in net new funded accounts for the third consecutive quarter. In the U.S., Moomoo's Prediction Markets garnered significant traction, driving incremental new client acquisition and helping improve overall client engagement on our platform.

As of quarter end, total client assets stood at HKD 1.4 trillion, up 43.6% year-over-year and 14.5% quarter-over-quarter. The growth was mainly attributable to higher market valuation of client stock holdings and, to a lesser extent, net asset inflow. Period end margin financing and securities lending balance rose 31% quarter-over-quarter to HKD 95.1 billion, supported by an active Hong Kong IPO market, along with broader positive market sentiment that encouraged clients to take on more leverage.

Thanks to favorable market conditions, total trading volume rose 78.8% year-over-year and 54.6% quarter-over-quarter to HKD 6.42 trillion, setting a new record high.

U.S. stock trading volume grew 67.2% sequentially to HKD 5.02 trillion, driven by client interest in AI-related names. Hong Kong stock trading volume increased by 15.9% quarter-over-quarter to HKD 1.17 trillion, largely attributable to heightened trading activity in semiconductor, China internet, and newly listed companies.

6月，富途证券获香港证监会1号牌照升级，成为香港首家也是目前唯一一家推出证券抵押融资交易虚拟资产的券商。同时，我们正积极探索将虚拟资产纳入统一购买力控价，以进一步提升传统资产和数字资产市场的资金使用效率。 In June, Futu Securities became the first and to date only broker in Hong Kong to launch securities-backed margin financing for virtual assets under an upgraded Type 1 license approval from the SFC.

We are also exploring extending our unified buying power framework to cover virtual asset holdings, further enhancing capital efficiency across traditional and digital asset markets.

财富管理客户资产达1,802亿港元，同比增长10%，环比增长1%。本季度，受股票市场强劲表现推动，我们观察到客户偏好从货币市场基金转向股票基金。在香港，我们面向零售投资者举办了首次线下基金路演，聚焦商业航天主题。投资者对该主题兴趣浓厚，活动现场满员，线上直播吸引数百人在线参与，并带动了后续显著的认购。 Wealth management client assets were HKD 180.2 billion, up 10% year-over-year and 1% quarter-over-quarter.

During the quarter, we observed a shift in client preference from money market funds towards equity funds on the back of strong equity market performance. In Hong Kong, we held our first offline fund roadshow for retail investors centered on the commercial space theme. Amid heightened investor interest, the event drew a full onsite audience and several hundred livestream participants, translating into meaningful follow-on subscriptions.

截至期末，我们的IPO及IR客户达683家，同比增长32%。二季度香港IPO市场延续强劲势头，期间近六成新上市公司选择与富途合作。我们担任了多家知名上市项目的联席账簿管理人，其中包括天星医疗、曦智科技与剂泰科技。 We concluded the quarter with 683 IPO distribution and IR clients, up 32% year-over-year.

The Hong Kong IPO market sustained strong momentum in the second quarter, with nearly 60% of newly listed companies choosing to partner with Futu. We served as joint bookrunners for multiple high-profile listings, including those of Star Sports Medicine, Lightelligence, and 剂泰科技.