富途控股 (FUTU) 2022 Q2 法說會逐字稿

Hello, ladies and gentlemen. Welcome to Futu Holdings Second Quarter 2022 Conference Call. (Operator Instructions)

女士們、先生們，大家好。歡迎參加富途控股2022年第二季電話會議。 （操作員指令）

I would now like to turn the conference over to your host for today's conference call, Daniel Yuan, Chief of Staff and Head of IR at Futu. Please go ahead, sir.

現在，我想將今天的電話會議主持人、富途證券首席參謀長兼投資者關係主管 Daniel Yuan 交給您。先生，請繼續。

Thanks, operator, and thank you for joining us today to discuss our second quarter 2022 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.

謝謝，接線員，感謝您今天加入我們討論我們的 2022 年第二季收益結果。今天與我一起參加電話會議的還有董事長兼執行長李立先生； Arthur Chen，財務長；以及資深副總裁 Robin Xu。

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 risk and uncertainty. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements.

提醒一下，今天的電話會議可能包含前瞻性陳述，這些陳述代表了公司對未來事件的看法，而這些事件本質上並不確定，也不在公司的控制範圍內。前瞻性陳述涉及固有風險和不確定性。我們提醒您，許多重要因素可能導致實際結果與任何前瞻性陳述中的結果有重大差異。

For more information about the potential risks and uncertainties, please refer to the company's filings with the SEC, including its registration statement.

有關潛在風險和不確定性的更多信息，請參閱公司向美國證券交易委員會提交的文件，包括其註冊聲明。

So with that, I will now turn the call over to Leaf. Leaf will make his comments in Chinese, and I will translate.

因此，我現在將電話轉給 Leaf。 Leaf 將以中文發表評論，我負責翻譯。

(foreign language)

（外語）

[Interpreted] Thank you all for joining us today. As of quarter end, we had approximately 1.4 million paying clients, up 39% year-over-year. Net addition was over 60,000, bringing our first half paying clients growth to 143,000. This is also the 10th consecutive quarter for which organic growth contributed over 50% of new paying clients.

[翻譯] 感謝大家今天的出席。截至季末，我們擁有約 140 萬付費客戶，年增 39%。淨增客戶超過 60,000 人，使我們上半年付費客戶成長至 143,000 人。這也是連續第 10 個季度有機成長貢獻了超過 50% 的新付費客戶。

(foreign language)

（外語）

[Interpreted] In the second quarter, client acquisition was resilient in Hong Kong, where we launched targeted marketing campaigns around the green bond issuance in May and attracted allocation-driven clients to subscribe to the green bond on our platform. We contributed over 1/3 of the overall green bond subscribers, which speaks to our leading brand recognition and superior product experience.

[解讀]第二季度，香港的客戶獲取表現強勁，我們在5月份圍繞綠色債券發行開展了有針對性的營銷活動，並吸引了配置驅動的客戶在我們的平台上認購綠色債券。我們貢獻了超過1/3的整體綠色債券認購者，證明了我們領先的品牌知名度和卓越的產品體驗。

In Hong Kong, we will continue to focus on clients over 30 years old as our current penetration rate among 30-plus Hong Kong residents is at a near 7.5%. To achieve that, we have rolled out new marketing initiatives and launched new features, including the light trading mode, which offers a more simplified and sleek trading interface and the regular savings plan for Hong Kong stocks, which caters to clients less interested in market timing.

在香港，我們將繼續專注於30歲以上的客戶，目前我們在30歲以上香港居民中的滲透率接近7.5％。為了實現這一目標，我們推出了新的行銷措施和新功能，包括輕交易模式（提供更簡化和流暢的交易介面）和港股定期儲蓄計劃（滿足對市場時機不太感興趣的客戶的需求）。

In Singapore, we've realized that the local users are more conservative during market downturn and thus launched a series of investor education activity to help users understand how to better navigate market turmoil and continue to diversify our product offerings in wealth management.

在新加坡，我們意識到當地用戶在市場低迷時期更加保守，因此推出了一系列投資者教育活動，幫助用戶了解如何更好地應對市場動盪，並繼續豐富我們的財富管理產品。

We are encouraged to see that our quarterly client retention rate remained above 98% despite sharp market correction in April and May.

我們很高興看到，儘管 4 月和 5 月市場大幅調整，但我們的季度客戶保留率仍保持在 98% 以上。

(foreign language)

（外語）

[Interpreted] Total client assets decreased 14% year-over-year and increased 12% quarter-over-quarter to HKD 434 billion. The sequential increase was largely due to strong net asset inflow across different regions, and to a lesser extent, rebound of China technology names in June.

[解讀] 客戶總資產較去年同期下降14%，季增12%，至4,340億港元。環比成長主要歸因於不同地區強勁的淨資產流入，以及 6 月中國科技股的反彈（較小程度上）。

In Singapore, we continued to acquire higher-quality clients. The average asset balance of our newly acquired paying clients in Singapore exceeded SGD 10,000 within 3 months. This compares to about 9 months for clients we acquired last year. Margin financing and securities lending balance increased 13% quarter-over-quarter as sentiments around technology stocks improved sequentially.

在新加坡，我們繼續獲得更高品質的客戶。我們在新加坡新獲得的付費客戶的平均資產餘額在3個月內超過了10,000新元。相比之下，我們去年獲得的客戶等待時間約為 9 個月。由於科技股市場情緒較上季改善，融資融券餘額較上季成長 13%。

(foreign language)

（外語）

[Interpreted] Total trading volume was HKD 1.3 trillion, up 2% quarter-over-quarter. U.S. stock trading volume was HKD 897 billion, constituting 67% of the total volume and up 6% quarter-over-quarter. The sequential growth was mostly driven by higher turnover of leveraged and inverse ETFs amid heightened market volatility.

[解讀] 總成交額為1.3兆港元，較上季成長2%。美股成交量為8,970億港元，佔總成交量的67%，較上季成長6%。環比成長主要得益於市場波動加劇導致槓桿和反向 ETF 成交量上升。

Hong Kong stock trading volume was HKD 424 billion, down 5% sequentially due to muted market sentiment around China tech names in Hong Kong. In the meantime, our market share in Hong Kong futures and options trading climbed to 6.7% and 13.5%, respectively. We launched multi-leg options function for Hong Kong stocks by the end of June, which enables our clients to formulate advanced options trading strategies to better manage risk and achieve investment targets. We believe this function will attract more sophisticated options traders to our platform.

由於香港市場對中國科技股的情緒低迷，香港股票成交量為 4,240 億港元，季減 5%。 同時，我們在香港期貨及選擇權交易的市佔率分別攀升至6.7%和13.5%。我們於6月底推出了港股多項選擇權功能，使客戶能夠制定高階選擇權交易策略，從而更好地管理風險並實現投資目標。我們相信此功能將吸引更多成熟的選擇交易者加入我們的平台。

(foreign language)

（外語）

[Interpreted] Total client assets In wealth Management were HKD 22 billion, up 59% year-over-year and 5% quarter-over-quarter. As of quarter end, over 200,000 clients, 15% of our total paying client base, held wealth management products. The money market funds became increasingly attractive to our clients amid interest rate hike. And to help our clients navigate a ripe inflation environment, we also launched the model portfolio of global real return strategy in collaboration with Aberdeen.

[解讀] 財富管理業務總客戶資產為220億港元，較去年同期成長59%，較上一季成長5%。截至季末，超過 20 萬名客戶（占我們總付費客戶群的 15%）持有理財產品。隨著利率上調，貨幣市場基金對我們的客戶越來越有吸引力。為了幫助我們的客戶應對成熟的通膨環境，我們也與安本合作推出了全球實際回報策略的模型投資組合。

In Singapore, wealth management asset balance increased 377% quarter-over-quarter as we further expanded mutual fund offerings and launched new product features.

在新加坡，隨著我們進一步擴大共同基金供應並推出新的產品功能，財富管理資產餘額較上季成長了 377%。

(foreign language)

（外語）

[Interpreted] As of quarter end, we have 276 IPO and IR clients as well as 519 ESOP clients, up 48% and 97% year-over-year. Over 1,000 companies are now using their enterprise accounts in our social community to communicate with retail investors. Among the new additions in the second quarter are BYD Electronics and Tianqi Lithium. In the first 2 quarters, we acted as the underwriter for 12 Hong Kong IPOs, tied for first place in terms of the number of Hong Kong IPOs underwritten.

[解讀] 截至季末，我們擁有 276 家 IPO 和 IR 客戶以及 519 家 ESOP 客戶，年增 48% 和 97%。目前，已有超過 1,000 家公司正在使用我們社交社群中的企業帳戶與散戶投資者溝通。第二季新增的有比亞迪電子、天齊鋰業等。前兩季度，公司承銷了12隻香港IPO，承銷香港IPO數量並列第一。

(foreign language)

（外語）

[Interpreted] We believe that our superior user experience remains our biggest competitive advantage. In the first half of this year, we continued our relentless pursuit of product experience by releasing 99 versions of our mobile app and desktop clients and adding 3,989 new features, up 21% and 52% year-over-year. Going forward, we intend to launch more customized features for clients of different regions.

[解讀]我們相信，卓越的使用者體驗仍是我們最大的競爭優勢。今年上半年，我們繼續不懈追求產品體驗，發布了99個行動應用程式和桌面用戶端版本，增加了3,989個新功能，年增21％和52％。展望未來，我們打算針對不同地區的客戶推出更多客製化功能。

(foreign language)

（外語）

[Interpreted] Next, I'd like to invite our CFO, Arthur, to discuss our financial performance.

[口譯]接下來，我想請我們的財務長亞瑟來討論我們的財務表現。

Thanks, Leaf and Daniel. Now please allow me to walk you through our financial performance in the second quarter. All the numbers are in Hong Kong dollars, unless otherwise noted.

謝謝，Leaf 和 Daniel。現在請容許我向您介紹我們第二季的財務表現。除非另有說明，所有數字均為港元。

Our total revenue was HKD 1.7 billion, up 11% from HKD 1.6 billion in the second quarter of 2022. Brokerage commission and handling charge income was HKD 1 billion, an increase of 30% year-over-year and 7% Q-over-Q. The year-over-year increase was mostly driven by a higher blended commission rate of 7.7 basis points, up from 6.1 basis points in the year ago quarter, underpinned by greater contribution from derivative trading. The Q-over-Q increase can be attributed to our commission-per-share pricing model for U.S. stock trading as a decrease in the average share price of the stock our clients trade can result in a higher blended commission rate.

我們的總營收為 17 億港元，較 2022 年第二季的 16 億港元成長 11%。經紀佣金及手續費收入為 10 億港元，年增 30%，季增 7%。年成長主要得益於混合佣金率上漲 7.7 個基點，高於去年同期的 6.1 個基點，這得益於衍生性商品交易的貢獻增加。環比成長可以歸因於我們針對美國股票交易的每股佣金定價模型，因為客戶交易的股票平均股價下降會導致混合佣金率上升。

Interest income was HKD 620 million, an increase of 2% year-over-year and 8% Q-over-Q. The slight increase year-over-year was due to higher income from cash deposits and securities lending, which was largely offset by lower margin financing income and IPO financing interest income. The Q-over-Q increase was mostly due to higher interest income from cash deposits amidst a rising rate environment.

利息收入為 6.2 億港元，年增 2%，季增 8%。年比略有成長是由於現金存款及證券借貸收入增加，但被保證金融資收入及IPO融資利息收入的下降所抵銷。環比成長主要是由於利率上升環境下現金存款的利息收入增加。

Other income were HKD 93 million, down 45% year-over-year and 6% Q-over-Q. The year-over-year decrease was driven by a lower IPO financing service income and underwriting fee income. The Q-over-Q decrease was mainly due to lower currency exchange income and enterprise public relationship service charge income.

其他收入為 9,300 萬港元，年減 45%，季減 6%。年比下降主要是由於IPO融資服務收入和承銷費收入下降。環比下降主要由於匯兌收入和企業公關服務費收入下降。

Our total costs were HKD 208 million, a decrease of 25% from HKD 279 million in the second quarter of 2022.

我們的總成本為 2.08 億港元，較 2022 年第二季的 2.79 億港元下降 25%。

Brokerage commission and handling charge expenses were HKD 88 million, down 40% year-over-year and 10% Q-over-Q. Despite the year-over-year increase in brokerage commission and handling charge income, the expenses declined due to the cost savings from our U.S. sales -- U.S. securities self-clearing migration and upgraded service package with our U.S. clearinghouse and the lower IPO subscription fees. The Q-over-Q decrease was mostly due to self-clearance.

經紀佣金及手續費支出為 0.88 億港元，年減 40%，季減 10%。儘管經紀佣金及手續費收入較上年同期有所增加，但由於美國銷售帶來的成本節約－美國證券自我清算遷移及美國清算所服務包升級，以及IPO認購費降低，費用有所下降。 Q 值環比下降主要是因為自我清除所致。

Interest expenses were HKD 27 million, down 67% year-over-year and 32% Q-over-Q. The year-over-year decrease was mostly due to lower expenses for margin financing and IPO financing. The sequential decline was driven by lower blended funding costs as we finance an increasing percentage of our [margin] book with cash collateral generated from security borrowing.

利息支出為 2,700 萬港元，年減 67%，季減 32%。年比下降主要由於保證金融資和IPO融資費用減少。連續下降是由於混合融資成本下降所致，因為我們透過證券借款產生的現金抵押為保證金帳簿的不斷增加的比例提供資金。

Processing and service costs were HKD 94 million, up 74% year-over-year and 1% Q-over-Q. The year-on-year increase was primarily driven by higher cloud service fees to support overseas market expansion and process a large number of concurrent trades.

加工及服務成本為 9,400 萬港元，年增 74%，季增 1%。年成長主要由於支持海外市場擴張及處理大量並發交易而提高的雲端服務費。

As a result, total gross profit was HKD 1.5 billion, an increase of 19% from HKD 1.3 billion in the second quarter of 2021. Gross margin was 88% as compared to 82% in the second quarter of 2021.

因此，總毛利為 15 億港元，較 2021 年第二季的 13 億港元成長 19%。毛利率為 88%，而 2021 年第二季為 82%。

Operating expenses were HKD 747 million (sic) [HKD 722 million], up 12% year-over-year and down 4% Q-over-Q. To break down, R&D expenses were HKD 292 million, up 69% year-over-year and 3% Q-over-Q. The increase was mainly due to an increase in R&D head count as we continued to support a new product offering, invested in the U.S. self-clearing capabilities and customized product experience in different markets.

營業費用為 7.47 億港元（原文如此）[7.22 億港元]，年增 12%，季減 4%。其中，研發費用為2.92億港元，年增69%，較上季成長3%。成長的主要原因是，由於我們持續支援新產品的推出、投資美國的自我清算能力以及在不同市場客製化的產品體驗，研發人員數量增加。

Selling and marketing expenses was HKD 219 million, a decrease of 42% year-over-year and 24% Q-over-Q. The year-over-year decrease was due to lower overall marketing and branding spending, especially in international markets. The expenses declined Q-over-Q as marketing spending came down due to slower paying client growth.

銷售及行銷費用為2.19億港元，年減42%，較上季減少24%。年比下降的原因是整體行銷和品牌支出下降，尤其是在國際市場。由於付費客戶成長放緩導致行銷支出減少，因此費用較上季下降。

G&A expenses were HKD 211 million, up 118% year-over-year and 19% Q-over-Q. The increase was primarily due to increase in head count for general and administrative personnel.

一般及行政開支為 2.11 億港元，較去年同期增加 118%，較上一季增加 19%。成長的主要原因是一般及行政人員數量增加。

As a result, our net income increased by 20% year-over-year and 12% Q-over-Q to HKD 639 million (sic) [HKD 642 million]. Net interest margin (sic) [net income margin] expanded to 37% in the second quarter as compared to 34% in the same quarter last year, partially attributed to lower tax rate of 10%. This lower tax rate was due to the tax credit benefit from our U.S. self-clearinghouse. We maintain our long-term tax rate guidance of 12% to 14% for tax benefit [for later] another 2 quarters also.

因此，我們的淨收入年增 20%，季增 12%，達到 6.39 億港元 [6.42 億港元]。第二季淨利差（原文如此）[淨收入利潤率]擴大至 37%，去年同期為 34%，部分原因是稅率較低至 10%。較低的稅率是由於我們美國自我清算所的稅收抵免優惠。我們維持 12% 至 14% 的長期稅率指導，以便在未來兩季獲得稅收優惠。

That concludes our prepared remarks. We'd now like to open the call to questions. Operator, please go ahead.

我們的準備好的演講到此結束。我們現在想開始提問。接線員，請繼續。

(Operator Instructions) And the question comes from Cindy Wang from China Renaissance.

(操作員指示) 這個問題來自華興資本的 Cindy Wang。

(foreign language) Okay. So I have 2 questions. So first question is, can management give us some breakdown for the customer acquisition by different regions? Since July and August, the stock market turnover are coming down. So what's the new customer acquisition trend in July and August? Please give us some color on that.

（外語） 好的。所以我有兩個問題。所以第一個問題是，管理階層能否提供我們不同地區客戶獲取狀況的細分？自七、八月以來，股市成交量持續回落。那麼七月和八月的新客戶獲取趨勢如何？請對此作出一些說明。

And the second question is related to Singapore. Since Futu has got the self-clearing license in Singapore, so do we have any schedule when we will finish the self-clearing for the Singapore stocks? And the ones we finished the self-clearing, can we have further helping out in terms of the Singapore new customer acquisition?

第二個問題涉及新加坡。富途證券在新加坡有自主清算牌照，那我們什麼時候能完成新加坡股票的自主清算呢？我們已經完成了自我清算，我們能在新加坡新客戶獲取方面提供進一步的幫助嗎？

Thank you, Cindy. Let me just answer your second question first. I will leave the first question in terms of the new paying clients breakdown to my colleague, Robin. I think now the most -- the focus of our technology capabilities still lies on our U.S. self-clearing operations. This migration has conducted very smoothly. And so far, we have already migrated over 80% dollar value of our U.S. security positions from our business partners to our own clearing house. And we do expect this exercise will be largely complete by the end of this year.

謝謝你，辛蒂。讓我先回答你的第二個問題。關於新付費客戶細目的第一個問題我將留給我的同事羅賓 (Robin)。我認為現在我們技術能力的重點仍然在於美國的自我清算業務。這次遷移進行得非常順利。到目前為止，我們已經將超過 80% 美元價值的美國證券頭寸從我們的業務合作夥伴轉移到我們自己的清算所。我們確實預計這項工作將在今年年底前基本完成。

Afterwards, we do think -- you're right, the self-clearing capability in the Singapore market definitely is on our schedules, but we will be following subsequent to the completion of our U.S. self-clearing migrations.

之後，我們確實認為 - 您是對的，新加坡市場的自我清算能力肯定在我們的計劃中，但我們將在美國自我清算遷移完成後進行跟進。

(foreign language)

（外語）

Your next question comes from the line of Zoey Zong from Jefferies.

您的下一個問題來自 Jefferies 的 Zoey Zong。

(foreign language) Congratulations on the solid results first, and I have two questions. So first, in Q2, we recorded HKD 95.5 million loss. So please provide more color about this item?

（外語）首先祝賀你取得了紮實的成績，我有兩個問題。首先，在第二季度，我們虧損 9,550 萬港幣。那麼請提供更多有關此產品的顏色嗎？

And my second question is how should we expect the customer acquisition (inaudible)?

我的第二個問題是我們應該如何預期客戶獲取（聽不清楚）？

Thank you. I'll also take your second question first. I think you are right. The year-to-date volatility in the capital markets definitely had some certain negative impacts in terms of our client positions. And you can see our blended CAC number is around HKD 3,500 in the second quarter, which is slightly higher than our previous guidance of HKD 2,500 to HKD 3,000.

謝謝。我還想先回答你的第二個問題。我認為你是對的。今年迄今資本市場的波動肯定對我們的客戶狀況產生了一定的負面影響。您可以看到，我們第二季的綜合CAC數字約為3,500港幣，略高於我們先前預期的2,500港幣至3,000港幣。

We do think the current market turmoil may be continued in the near term or even in the whole second half of this year. So therefore, we do think our previous estimation may be a little bit too optimistic. And we currently expect the CAC numbers in the second half of this year may maintain at the current level for a while.

我們確實認為，當前的市場動盪可能會在短期內持續下去，甚至持續到今年下半年。因此，我們確實認為我們之前的估計可能有點過於樂觀。目前我們預計今年下半年CAC數字可能會在一段時間內維持在現有水準。

Can I just -- could you just repeat your first question regarding the P&L items?

我可以—您能重複一下有關損益項目的第一個問題嗎？

(foreign language)

（外語）

Sure. The others mainly consist of unrealized financial gain on the loss. The nature is that we provide certain margin financing to our clients, which trade A-shares Connect. Previously, we do pour in the offshore RMBs to fund this margin balance. But given the current -- the balance sheet situation, actually we try to -- we have exchanged certain of the positions from our Hong Kong dollar position to the RMB position ourselves. Due to the very volatile RMB-Hong Kong dollar movement in May and June, we recorded unrealized loss. But this is actually on the cash item. If we look in the long run, we do think it can be a chance to reverse that.

當然。其他主要為未實現財務收益和損失。本質就是我們給交易A股通的客戶一定的保證金融資。此前，我們確實注入了離岸人民幣來彌補這項保證金餘額。但考慮到目前的資產負債表狀況，實際上我們已嘗試將部分部位從港元部位轉換為人民幣部位。由於五月及六月人民幣兌港幣走勢非常波動，我們錄得未實現損失。但這其實是現金項目。如果從長遠來看，我們確實認為這是一個扭轉這一狀況的機會。

We will take our next question. And the question comes from Emma Xu from Bank of America Securities.

我們將回答下一個問題。這個問題來自美國銀行證券的 Emma Xu。

(foreign language) So my question is regarding the financial impact of U.S. self-clearing, as well as the U.S. rate hike's impact to your financials.

（外語）所以我的問題是關於美國自我清算的財務影響，以及美國升息對你們財務的影響。

Sure. Let me answer these 2 financial number questions. For the self-clearing, as I mentioned before, we have already migrated over 80% of our U.S. stock positions to our own clearinghouse. According to the current run rate, we do expect in the second half of this year the self-clearing capability can enhance HKD 200 million to HKD 250 million incremental revenues to our own P&L.

當然。讓我來回答這兩個財務數字問題。對於自我清算，正如我之前提到的，我們已經將超過 80％ 的美國股票頭寸遷移到我們自己的清算所。以目前的運行速度，我們預計今年下半年自我清算能力可以為我們的損益表帶來 2 億至 2.5 億港元的增量收入。

Secondly, regarding the interest rate hike, definitely we do think we are a beneficiary from the rate cycle given that we will get more interest income from client's idle cash. Just do some very simple calculations, as the rate hike do follow the consensus expectation nowadays, say, toward the end of this year, the rate will be increased to, say, [300 or 325 basis points]. In the second half of this year, we can generate additional HKD 200 million to HKD 250 million interest income because of that.

其次，關於升息，我們確實認為我們是利率週期的受益者，因為我們將從客戶的閒置現金中獲得更多利息收入。做一些非常簡單的計算，因為現在升息確實符合普遍的預期，比如說，到今年年底，利率將增加到[300或325個基點]。今年下半年，我們可以因此獲得額外2億至2.5億港元的利息收入。

(foreign language)

（外語）

Just to the second half of this year.

剛到今年下半年。

We will take our next question. And the question comes from Leon Qi from Daiwa.

我們將回答下一個問題。這個問題來自 Daiwa 的 Leon Qi。

(foreign language) Congrats on the very strong results. I have 2 questions today. Firstly is regarding your new customer acquisition guidance. Appreciate your very strong new customer acquisition in the second quarter, which reached 61,000. And given you had also a very strong customer acquisition in the first quarter, now your first half new customer acquisition has reached well over 50% of your full year guidance of 200,000. So wondering if management want to take any revisions to your full year target of 200,000.

（外語）祝賀您取得如此優異的成績。我今天有兩個問題。首先是關於您的新客戶獲取指導。感謝您在第二季度取得了非常強勁的新客戶獲取成績，新客戶數量達到了 61,000 名。鑑於您在第一季的客戶獲取量非常強勁，現在您上半年的新客戶獲取量已遠遠超過全年預期 20 萬的 50%。所以想知道管理層是否想對全年 200,000 的目標做出任何修改。

The second question is regarding your capital management. We are very delighted to see that the free cash position of the company actually saw a sequential increase while the company is doing very decent buybacks. Could management give us any color in terms of the comfortable level of the cash position you want to hold so that we have some clues to gauge the amount of capital that you will be kind of made available to return to shareholders.

第二個問題是關於你們的資本管理。我們非常高興地看到，公司的自由現金狀況實際上實現了連續成長，同時公司進行了非常可觀的回購。管理層能否就您想要持有的現金頭寸的舒適水平告訴我們一些信息，以便我們能夠獲得一些線索來衡量您可以向股東返還的資本數額。

Thank you, Leon. I'll let my -- our CEO, Leaf, to answer your first question and I will take your second question afterwards.

謝謝你，萊昂。我們將讓我的執行長 Leaf 來回答您的第一個問題，然後再回答您的第二個問題。

(foreign language)

（外語）

[Interpreted] So the overall market has recorded pretty poor performance year-to-date, and we expect this uncertainty to persist for a reasonable period of time in the future. And we believe the current market is not that attractive to new clients and we think we'll continue to focus more on the quality of our new clients, the net asset inflow of our existing clients and the unit economics of the various regions, especially in such a sluggish market.

[解讀] 因此，今年迄今為止，整體市場表現相當糟糕，我們預計這種不確定性將在未來一段合理的時間內持續存在。我們認為目前的市場對新客戶的吸引力並不大，我們認為我們將繼續更加關注新客戶的品質、現有客戶的淨資產流入以及各個地區的單位經濟，尤其是在如此低迷的市場中。

So we now plan to keep our previous guidance of having 200,000 net new paying clients, and we may revisit the guidance later on this year. Thank you.

因此，我們現在計劃維持先前的預期，即新增 20 萬名淨付費客戶，我們可能會在今年稍後重新審視該預期。謝謝。

Yes. For the second question, I think we are still in the early stage of Futu's long-term growth strategy. So it is too early to tell ideal capital ratios we should focus. Instead to give a fixed number, I think what we focus will be our long-term growth potential, especially in the new markets and also further deployment of our resources on the key technology operations going forward. .

是的。對於第二個問題，我認為我們仍處於富途長期成長策略的早期階段。因此，現在判斷我們應該關注的理想資本比率還為時過早。我不會給出一個固定的數字，我認為我們關注的重點是我們的長期成長潛力，特別是在新市場，以及未來在關鍵技術營運上進一步部署我們的資源。 。

Definitely, we will focus more on the client -- on the ROE side in the long run. But in the near future, I do expect we do not have any, say, dividend payout plans in the foreseeable future.

毫無疑問，從長遠來看，我們將更加關注客戶——ROE 方面。但在不久的將來，我預計我們在可預見的未來不會有任何股息支付計劃。

We will take our next question. And the question comes from the line of Frank Zheng from Credit Suisse.

我們將回答下一個問題。這個問題來自瑞士信貸的 Frank Zheng。

(foreign language) Let me quickly translate my two questions. The first one is on blended fee rate. As we see fee rate continue to increase in the second quarter on a sequential basis, can the management provide more color on the drivers behind this time? And also, will this trend pass into the second half?

（外語）我來快速翻譯我的兩個問題。第一個是混合費率。我們看到第二季的費用率持續較上季上升，管理階層能否對此背後的驅動因素提供更多解釋？而且這個趨勢會延續到下半年嗎？

And the second question is on IPO market. As Hong Kong IPO market slowly recovers, do we see a recovery in the IPO bridge loan interest income and subscription fee income? And in terms of proportion, what is the proportion of IPO [rev] income as of total revenue?

第二個問題是關於IPO市場的。隨著香港IPO市場緩慢復甦，IPO過橋貸款利息收入及認購費收入是否會出現回溫？從佔比上看，IPO[rev]收入佔總收入的比例是多少？

Sure. I will take these 2 questions. As I mentioned in the opening remarks, you're right, you do see on a blended basis our commission rate continue to hike year-on-year basis and also Q-on-Q basis. Largely, I think, it's more contributions from the derivative trading, which now roughly accounts for 30% of our total trading commission revenues. But we do not have any target or try to encourage people to trade on these derivative stuff.

當然。我將回答這兩個問題。正如我在開場白中提到的，您說得對，您確實看到，從綜合基礎上看，我們的佣金率繼續同比和環比上漲。我認為，很大程度上是來自衍生性商品交易的貢獻，目前衍生性商品交易大約占我們總交易佣金收入的 30%。但我們沒有任何目標，也沒有試圖鼓勵人們交易這些衍生性商品。

The other indication is because of the market volatility in the U.S. market, in particular, the reason is we set our commission per share pricing model for our U.S. stock trade. You can understand that in the second quarter, U.S. markets corrected significantly. So a decrease in the average share of the stock of client trade can actually result on higher blended commission rate. So this is more due to the market volatilities.

另一個跡像是由於美國市場的市場波動，特別是因為我們為美國股票交易設定了每股佣金定價模型。你可以理解，第二季美國市場出現了大幅回檔。因此，客戶交易存量平均份額的下降實際上會導致混合佣金率的上升。所以這更多是因為市場波動造成的。

For the second question, the contribution from the IPO business actually in history just accounts for high single-digit or low teen numbers of our total revenues. We do think it will -- we do not see a very meaningful pickup despite the number of IPO in Hong Kong starts to rebound since June. I think it will still take some time for the market, especially for the retail investors, to build up further momentum to participate in these transactions.

對於第二個問題，實際上歷史上IPO業務的貢獻只占我們總收入的高個位數或低十位數。我們確實認為會這樣——儘管香港 IPO 數量自 6 月以來開始回升，但我們並沒有看到非常有意義的回升。我認為市場，特別是散戶投資者，仍需要一段時間來累積參與這些交易的進一步動力。

I would now like to hand back to Daniel Yuan for closing remarks. Please go ahead.

現在我想請袁志偉作最後發言。請繼續。

That concludes our call today. On behalf of the Futu management team, I would like to thank you for joining us. If you have any further questions, please do not hesitate to contact me or any of our Investor Relations representatives. Thank you, and goodbye.

今天的通話到此結束。我謹代表富途管理團隊感謝您的加入。如果您還有任何其他問題，請隨時與我或我們的任何投資者關係代表聯繫。謝謝你，再見。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本記錄中標記為[已翻譯]的部分由現場翻譯人員朗讀。 ]