富途控股 (FUTU) 2024 Q3 法說會逐字稿

Hello, ladies and gentlemen. Welcome to Futu Holdings third-quarter 2024 earnings conference call. (Operator Instructions) I would now like to turn the conference over to your host for today's conference call, Daniel Yuan, Chief of Staff to CEO, Head of Strategy and IR at Futu. Please go ahead, sir.

女士們、先生們，大家好。歡迎參加富途控股2024年第三季財報電話會議。（操作員指示）我現在想將會議轉交給今天電話會議的主持人，富途執行長辦公室主任、策略和投資者關係主管 Daniel Yuan。請繼續，先生。

Thanks, operator, and thank you for joining us today to discuss our third-quarter 2024 earnings results. Joining me on the call today are Mr. Leaf Li, Chairman and Chief Executive Officer; Arthur Chen, Chief Financial Officer; and Robin Xiu, 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.

感謝營運商，感謝您今天加入我們討論我們 2024 年第三季的獲利結果。今天與我一起參加電話會議的還有董事長兼執行長李葉先生；陳亞瑟，財務長；和高級副總裁Robin Xiu。提醒一下，今天的電話會議可能包括前瞻性陳述，這些陳述代表了公司對未來事件的信念，這些事件本質上是不確定的，並且不在公司的控制範圍內。

Forward-looking statements involving 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.

前瞻性陳述涉及風險和不確定性。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包含的結果有重大差異。有關潛在風險和不確定性的更多信息，請參閱該公司向 SEC 提交的文件，包括其年度報告。現在，我將把電話轉給 Leaf。Leaf會用中文發表評論，我會翻譯。

(spoken in foreign language)

（用外語說）

(interpreted) Thank you all for joining our earnings call today. We wrapped up the quarter with 154,000 net new paying clients up 138% year-over-year and flattish quarter-over-quarter. Our total paying clients reached approximately $2.2 million, up 33% year-over-year. Three quarters into 2024, we have acquired 487,000 paying clients, and we expect full year growth to comfortably exceed our guidance of $550,000 thanks to resilient growth in established markets and strong momentum in Eurobonds.

（翻譯）感謝大家今天參加我們的財報電話會議。本季結束時，我們淨新增付費客戶 154,000 名，較去年同期成長 138%，較上季持平。我們的付費客戶總數達到約 220 萬美元，年增 33%。到 2024 年三個季度，我們已經獲得了 487,000 名付費客戶，由於成熟市場的彈性增長和歐洲債券的強勁勢頭，我們預計全年增長將輕鬆超過我們 550,000 美元的指導。

(spoken in foreign language)

（用外語說）

(interpreted) As we continue to iterate on various client acquisition strategies and launched effective campaigns and elevated market sentiment, client acquisition accelerated in Hong Kong and Singapore which collectively contributed to over one-third of new pain clients. Three quarters in a row, Malaysia remains the top contributor of new paying clients among our seven markets.

（解釋）隨著我們不斷迭代各種客戶獲取策略並推出有效的活動並提高市場情緒，香港和新加坡的客戶獲取加速，這兩個國家合計貢獻了超過三分之一的新痛苦客戶。馬來西亞連續三個季度仍然是我們七個市場中新付費客戶的最大貢獻者。

We're committed to further elevating our brand image in Malaysia, and we've broadened product offerings to enhance our value proposition as a one-stop investment platform. In Japan, we made steady progress on client acquisition despite doing lay interest in Japan equities among retail investors amid market pullback in the third quarter.

我們致力於進一步提升我們在馬來西亞的品牌形象，並擴大了產品範圍，以增強我們作為一站式投資平台的價值主張。在日本，儘管第三季市場回落，散戶對日本股票產生了興趣，但我們在客戶獲取方面取得了穩步進展。

(spoken in foreign language)

（用外語說）

(interpreted) In terms of new product offerings, we rolled out US stock dividend reinvestment plan in Hong Kong. We launched NISA savings account and mutual funds in Japan and recently supported US margin trading and Japan options trading which started to gain decent traction among our clients. In Malaysia, we've rolled out ringgit and USD denominated money market funds. We also became the first broker in Malaysia to offer US options trading.

（解讀）新產品方面，推出香港美股股利再投資計畫。我們在日本推出了 NISA 儲蓄帳戶和共同基金，最近還支持美國保證金交易和日本選擇權交易，這些交易開始在我們的客戶中獲得不錯的吸引力。在馬來西亞，我們推出了以令吉和美元計價的貨幣市場基金。我們也成為馬來西亞第一家提供美國期權交易的經紀商。

(spoken in foreign language)

（用外語說）

(interpreted) Total client assets grew 48% year-over-year and 20% quarter-over-quarter to HKD693 billion. The sequential increase was due to strong net asset inflow across markets and to a greater extent, the appreciation of client stock holdings and the China equity search towards quarter end. In Singapore, total and average client assets grew by 18% and 10% quarter-over-quarter driven by robust net asset inflows and favorable market movements.

(解讀) 客戶總資產達 6,930 億港元，年增 48%，按季增長 20%。環比成長的原因是各個市場的淨資產流入強勁，並且在更大程度上是由於客戶持有的股票升值以及臨近季度末的中國股票搜尋。在新加坡，在強勁的淨資產流入和有利的市場走勢的推動下，客戶總資產和平均資產環比增長了 18% 和 10%。

US, Canada and Australia all recorded double-digit sequential growth in average client assets for the third consecutive quarter. In third quarter, our clients maintain their risk all mode as evidenced by a single-digit sequential growth in daily average margin balance. Sharp market movements in September process some clients take profit. As a result, margin financing and securities lending balance as of quarter end slid by 7% to HKD41 billion.

美國、加拿大和澳洲的平均客戶資產均連續第三個季度實現兩位數的環比成長。第三季度，我們的客戶維持全風險模式，每日平均保證金餘額連續個位數成長就證明了這一點。9月市場劇烈波動導致部分客戶獲利了結。因此，截至季末的融資融券餘額下跌 7%，至 410 億港元。

(spoken in foreign language)

（用外語說）

(interpreted) Total trading volume grew by 17% quarter-over-quarter to HKD1.9 trillion, of which US stock trading volume outpaced the overall growth by rising 23% sequentially to HKD1.53 trillion. The growth in US operating was fueled by elevated trading interest in technology stocks and leveraged ETFs amid high T volatility in August.

(解讀) 總交易量較上季成長17%至1.9兆港元，其中美股交易量較上季成長23%至1.53兆港元，領先整體增幅。在 8 月 T 波動較大的情況下，科技股和槓桿 ETF 的交易興趣上升，推動了美國業務的成長。

Despite sluggish sentiments and rather muted trading activities in July and August, our clients quickly picked up the momentum of China equities in September. Overall, Hong Kong stock trading volumes slipped by 3% quarter-over-quarter to HKD348 billion. Notably, during the week of September 23, Hong Kong stock trading volume surged by 267% week-over-week. And together with China ADRs contributed to over half of our trading volume for the week.

儘管 7 月和 8 月市場情緒低迷且交易活動相當低迷，但我們的客戶在 9 月迅速恢復了中國股市的勢頭。整體而言，港股成交量按季下跌 3%，至 3,480 億港元。值得注意的是，截至9月23日當週，港股成交量較上季飆漲267%。與中國 ADR 一起貢獻了我們本週交易量的一半以上。

(spoken in foreign language)

（用外語說）

(interpreted) Wealth management recorded another quarter of strong growth on the back of enticing yields of money market funds and fixed income funds. As of quarter end, total client assets grew 87% year-over-year and 22% quarter-over-quarter to HKD97 billion. Around 27% of our paying clients help wealth management products up from 25% in the second quarter. To cater to client demand for asset allocation, we launched ETF-based robo-advisory service in Hong Kong and Singapore.

(解讀) 得益於貨幣市場基金和固定收益基金誘人的收益率，理財業務再錄一個季度強勁增長。截至季末，客戶總資產年增87%，季增22%至970億港元。我們約 27% 的付費客戶幫忙理財產品，高於第二季的 25%。為滿足客戶資產配置需求，我們在香港和新加坡推出了ETF智能投顧服務。

(spoken in foreign language)

（用外語說）

(interpreted) We have 461 IPO distribution in our clients, up 17.9% year-over-year. We underwrote the three largest Hong Kong IPOs in the first three quarters of 2024.

（解讀）我們的客戶IPO分佈461家，較去年成長17.9%。我們承銷了2024年前三季香港最大的三宗IPO。

(spoken in foreign language)

（用外語說）

(interpreted) Next, I'd like to invite our CFO, Arthur, to discuss our financial performance.

（翻譯）接下來，我想邀請我們的財務長阿瑟來討論一下我們的財務表現。

Thank you, Leaf and Daniel. Please allow me to walk you through our financial performance in the third quarter. All the numbers are in Hong Kong dollar unless otherwise noted. Total revenue was $3.4 billion, up 30% from $2.7 billion in the third quarter of 2023. Brokerage commission and handling charge income was $1.5 billion up 52% year-over-year and 11% Q-over-Q.

謝謝你們，葉和丹尼爾。請容許我向您介紹我們第三季的財務表現。除非另有說明，所有數字均以港元計算。總營收為 34 億美元，比 2023 年第三季的 27 億美元成長 30%。經紀佣金和手續費收入為 15 億美元，年增 52%，季增 11%。

The increase was mainly driven by a 75% year-over-year and 7% Q-over-Q growth in total trading volume. Partially offset by the decline in blended commission rate as our clients gravitate towards higher-priced stocks. Our land commission rate went down from 8.5 basis points to 8 basis points Q-over-Q.

這一增長主要是由於總交易量同比增長 75% 和環比增長 7%。由於我們的客戶傾向於價格較高的股票，混合佣金率的下降部分抵消了這種影響。我們的土地佣金率較上季從 8.5 個基點下降至 8 個基點。

Interest income was $1.7 billion, up 13% year-over-year and 7% Q-over-Q, the year-over-year increase was mainly driven by higher margin finance income due to increase in daily average margin balance and the higher interest income from security borrowing and the lending business. The Q-over-Q increase was mainly driven by the growth in bank deposit interest income and margin financing income.

利息收入為 17 億美元，年增 13%，較上季成長 7%，較去年同期成長主要是由於每日平均保證金餘額增加和利息增加導致保證金財務收入增加證券借貸和借貸業務的收入。環比成長主要是由於銀行存款利息收入和融資融券收入的成長所推動的。

Other income was $209 million, up 52% year-over-year and 30% Q-over-Q. The year-over-year and Q-over-Q increase was both primarily attributable to higher fund distribution income and higher currency exchange income. Our total cost was $625 million, an increase of 43% from $437 million in the third quarter of 2023.

其他收入為 2.09 億美元，年增 52%，季增 30%。年比和環比成長主要歸因於基金分配收入和貨幣兌換收入的增加。我們的總成本為 6.25 億美元，比 2023 年第三季的 4.37 億美元成長了 43%。

Brokerage commission and handling charge expenses were $82 million, up 30% year-over-year. Brokerage expenses grew by a narrow margin than brokerage income year-over-year, mainly due to cost savings from our US sales clearing business.

經紀佣金及手續費支出為8,200萬美元，年增30%。經紀費用較去年同期微幅增長，主要是由於我們的美國銷售清算業務節省了成本。

Interest expenses was $414 million, up 43% year-over-year and 10% Q-o-Q. The year-over-year and Q-over-Q increase was mainly driven by higher interest expenses associated with our security borrowing and the lending business. Processing and servicing costs were $130 million, up 51% year-over-year and 19% Q-over-Q, the year-over-year was mainly driven by higher product service fee and the data transmission fees as a result of growing business scale.

利息支出為 4.14 億美元，年增 43%，季增 10%。年比和季比成長主要是由於與我們的擔保借款和貸款業務相關的利息支出增加。處理和服務成本為1.3億美元，年增51%，較上季成長19%，年成長主要是由於業務成長帶來的產品服務費和資料傳輸費上漲所致規模。

As a result, total gross profit was $2.8 billion, an increase of 27% from $2.2 billion in the third quarter of 2023. Gross margin was 81.8% as compared to 83.5% in the year ago quarter. Operating expenses went up 21% year-over-year and flattish Q-over-Q to $1.1 billion. R&D expenses were $385 million, up 7% year-over-year and 3% Q-over-Q. The year-over-year Q-over-Q increase was mainly driven by increase in R&D headcount to support new products and new markets.

總毛利為 28 億美元，較 2023 年第三季的 22 億美元成長 27%。毛利率為 81.8%，去年同期為 83.5%。營運支出較去年同期成長 21%，環比持平，達到 11 億美元。研發費用為 3.85 億美元，較去年同期成長 7%，較上季成長 3%。年比成長主要是由於支援新產品和新市場的研發人員數量增加所致。

Selling and marketing expenses were $314 million, up 49% year-over-year and down 7% Q-over-Q. The year-over-year increase was mainly driven by a triple-digit year-over-year growth in new paying clients, partially offset by lower client acquisition costs. The Q-over-Q decline was mainly due to improved efficiency in customer acquisition. G&A expenses were $381 million, up 18% year-over-year and 5% Q-over-Q. The year-over-year and Q-over-Q increase was primarily due to an increase in headcount for general and administrative personnel.

銷售和行銷費用為 3.14 億美元，年增 49%，季減 7%。年比成長主要是由新付費客戶的三位數年成長推動的，但部分被客戶獲取成本的降低所抵消。環比下降主要是由於客戶獲取效率的提升。一般管理費用為 3.81 億美元，年增 18%，季增 5%。年比和環比增長主要是由於一般和行政人員人數的增加。

As a result, income from operations increased by 31% year-over-year and 17% year-over-year Q-over-Q to $1.7 billion. Operating margin increased to 50.4% from 49.8% in the third quarter of 2023. Our net income increased by 21% year-over-year and 9.1% Q-over-Q to $1.3 billion. Net income margin declined to 38.4% in the third quarter as compared to 41.2% in the same quarter last year.

因此，營運收入年增 31%，季增 17%，達到 17 億美元。營業利益率從 2023 年第三季的 49.8% 增至 50.4%。我們的淨利潤年增 21%，季增 9.1%，達到 13 億美元。第三季淨利率下降至 38.4%，去年同期為 41.2%。

Lower net income margin was mainly due to the unrealized foreign exchange loss from the appreciation of RMB in the third quarter. Our effective tax rate for the quarter was 15.3%, in addition, we are pleased to announce that our Board of Directors approved a special cash dividend of USD0.25 per ordinary share or USD2 per ADS to holders of ordinary shares and holders of ADS of record as of the close of business on December 6, 2024.

淨利潤率下降主要是由於第三季人民幣升值帶來的未實現匯兌損失。我們本季的有效稅率為15.3%，此外，我們很高興地宣布，我們的董事會批准向普通股股東和美國存託股持有人派發每股普通股0.25 美元或每份美國存託股2 美元的特別現金股利。

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

我們準備好的演講到此結束。我們現在開始提問。接線員，請繼續。

(Operator Instructions)

（操作員說明）

Cindy Wang, China Renaissance.

王辛迪，中國文藝復興。

Okay.

好的。

(spoken in foreign language)

（用外語說）

Thanks for taking my questions. I have two questions here. First, since the China assets rose in -- since the end of September. So based on current run rate in fourth quarter, can you give us some color on the Hong Kong up trading volume and ABR trading volume as a percentage of your total trading volume? And would that help your overall blended commission rate in the fourth quarter? And also, the new customer acquisition in Hong Kong?

感謝您回答我的問題。我在這裡有兩個問題。首先，中國資產自9月底以來上漲。那麼，根據第四季目前的運作情況，您能給我們介紹一下香港上漲交易量和 ABR 交易量佔你們總交易量的百分比嗎？這會對您第四季的整體混合佣金率有所幫助嗎？還有，在香港的新客戶獲取狀況？

Second question is related to crypto. Can you give us some color on the crypto development in third quarter? And will the Bitcoin price really since October would help your overall (inaudible) and the clients? And also, could you give us update for the VATP license in Hong Kong? Thank you.

第二個問題與加密貨幣有關。能為我們介紹一下第三季加密貨幣的發展嗎？自 10 月以來的比特幣價格真的會對您的整體（聽不清楚）和客戶有所幫助嗎？另外，您能為我們介紹一下香港 VATP 許可證的最新情況嗎？謝謝。

Thank you, Cindy. Let me answer your second question about crypto, and I will leave the first question to my colleagues, Daniel.

謝謝你，辛蒂。讓我回答你關於加密貨幣的第二個問題，我會把第一個問題留給我的同事丹尼爾。

(spoken in foreign language)

（用外語說）

In terms of the updates VATP license, we are still in the process of the reviewed by the regulators in terms of some on-site visits and for their inquiries. Hopefully, we can get the market some update in the near future.

關於VATP牌照的更新，我們也正在接受監管機構的審核過程中，包括一些現場訪視和詢問。希望我們能在不久的將來獲得市場的一些更新。

And as Leaf mentioned in the opening remarks, we have already launched our crypto business in the third quarter in Hong Kong. Given the recent data, we think the penetration of the users and also the trading volumes pick up very, very meaningfully. Now I think the daily average trading volumes on the crypto assets in Hong Kong was in the range of USD10 million to USD20 million every day.

正如 Leaf 在開場白中所提到的，我們已經在第三季在香港推出了加密貨幣業務。鑑於最近的數據，我們認為用戶的滲透率和交易量的上升非常非常有意義。現在我認為香港加密資產的日均交易量在1000萬美元到2000萬美元之間。

And I do think the penetration and the trading volume will continue to keep current momentum. And considering the recent rallies on the digital assets, it will definitely give us positive help in our new client acquisitions in Hong Kong recently.

我確實認為滲透率和交易量將繼續保持當前的勢頭。考慮到最近數位資產的反彈，這肯定會為我們最近在香港的新客戶獲取帶來積極的幫助。

(spoken in foreign language)

（用外語說）

So in late September, early October, the trading volume and the percentage of trading volumes of Hong Kong stocks and China ADRs experienced a rapid search, and as Lee mentioned in his opening remarks, the trading volume contribution of Hong Kong stocks and China ADRs altogether exceeded over 50% at some point. And later on, as a lot of China assets experienced pullback, both numbers experienced some sequential decrease. But overall, it is still much stronger than what we've seen in the third quarter.

所以在9月下旬、10月初，港股和中國ADR的交易量和交易量佔比經歷了快速搜索，正如李在開場白中提到的，港股和中國ADR的交易量貢獻合計在某些時候超過了50%。後來，隨著大量中國資產的回調，這兩個數字都出現了環比下降。但總體而言，它仍然比我們在第三季看到的要強得多。

So in the first -- in the fourth quarter so far, the US equities have performed very well, especially around the US election. Some of the technology names that our clients are particularly fond of experienced rapid surges. So overall, in the fourth quarter, we have seen a very meaningful sequential increase in our US stock trading volume. And that's where the blended commission rate as you are aware, there are a number of factors that affect our blended commission rate.

所以在第一季、第四季到目前為止，美國股市表現非常好，特別是在美國大選前後。我們的客戶特別喜歡的一些技術名稱經歷了快速激增。因此，總體而言，在第四季度，我們看到美國股票交易量出現了非常有意義的環比成長。這就是您所知道的混合佣金率，有很多因素會影響我們的混合佣金率。

In the fourth quarter so far, we have seen a mild pullback in the commission rate, mostly because the trading volume increase of our cash equities increased at a faster pace than derivatives, which brought a slight decline in blended commission rate. And in terms of client acquisition, quarter-to-date, we have seen an increase in our new paying clients.

到目前為止，第四季度我們看到佣金率略有回落，主要是因為我們的現金股票交易量成長速度快於衍生性商品，這導致混合佣金率略有下降。在客戶獲取方面，本季迄今，我們看到新的付費客戶增加。

And that increase is primarily attributable to our Hong Kong client acquisition. Mostly because the Hong Kong stocks and China ADRs performed very well in October and early October and have experienced continued volatility, which helped with client acquisition. Thank you.

這一成長主要歸因於我們的香港客戶收購。主要是因為港股和中國ADR在10月和10月初表現非常好，並且經歷了持續的波動，這有助於獲取客戶。謝謝。

[Theo Huang, MS]

[西奧·黃，女士]

(spoken in foreign language)

（用外語說）

So I got two questions. One is about the thinking around the special dividend, especially how to put that into context with the growth potential in the overseas market and also the related investment in these markets. And while we have a more recurring shareholder return plans in the next, say, 2 to 3 years?

所以我有兩個問題。一是關於特別股息的思考，特別是如何將其與海外市場的成長潛力以及這些市場的相關投資結合起來。雖然我們在未來（例如 2 到 3 年）有更多的經常性股東回報計畫？

Second question is on the sales and marketing expense. So just wondering what portion of sales and marketing expense should be more fixed in nature and what portion should be more variable and depending on the current acquisition number. So what should we expect for the fixed budget to grow in 2025, given our plans in the different overseas markets? Thank you.

第二個問題是關於銷售和行銷費用。因此，只是想知道銷售和行銷費用的哪一部分本質上應該更加固定，哪一部分應該更加可變，並取決於當前的收購數量。那麼，考慮到我們在不同海外市場的計劃，我們對 2025 年固定預算成長的預期應該是什麼呢？謝謝。

Thank you, (inaudible) Let me answer your first question about the special dividend. And I also will leave the second question to Daniel.

謝謝，（聽不清楚）讓我回答您關於特別股息的第一個問題。我也將第二個問題留給丹尼爾。

(spoken in foreign language)

（用外語說）

As you may be aware, (inaudible) this year, in particular, the third quarter is a very special moment for Futu to a couple of weeks ago, we just celebrated our 12th in Futu. And this is also the flip annual rate since the inception of our IPO in 2019. We very pay attention to the shareholder reward and the shareholder values.

正如您可能知道的，（聽不清楚）今年，特別是第三季度對富途來說是一個非常特殊的時刻，幾週前，我們剛剛慶祝了富途成立 12 週年。這也是我們自2019年IPO以來的翻轉年率。我們非常注重股東回報和股東價值。

Since 2021, we have set a series of share repurchase programs to demonstrate our commitment to the shareholder values. Considering this year is the fifth anniversary of our listing, we want to take this opportunity to express the gratitude to our long-term shareholders in the past. This is the major rationale for this special cash dividend payout and the total size for this cash dividend amounting to USD280 million, which accounts to 7.8% of total net equities at the end of the third quarter.

自2021年以來，我們制定了一系列股票回購計劃，以反映我們對股東價值的承諾。考慮到今年是我們上市五週年，我們想藉此機會向過去的長期股東表示感謝。這是本次專案現金分紅的主要原因，本次現金分紅的總規模為2.8億美元，佔三季末總淨資產的7.8%。

Considering our balance sheet and also our cash on hand, we think this size is appropriate, and there will be no any negative implications to our client acquisitions, our current operations afterwards. As to whether we will set up a more visible dividend payout policies, we will make the revisit in next years after taking into account the market conditions and our future business development. Thank you very much.

考慮到我們的資產負債表和手頭現金，我們認為這個規模是合適的，不會對我們的客戶收購以及之後我們目前的營運產生任何負面影響。至於是否會制定更明顯的股利支付政策，我們會在考慮市場狀況和未來業務發展後，在未來幾年重新考慮。非常感謝。

(spoken in foreign language)

（用外語說）

So among our sales and marketing spend over 50% is salary related, which can be interpreted as more fixed in nature, and the rest is marketing related. And as we've passed the initial rapid expansion phase in a couple of new markets this year, and as we have no imminent plans to launch in any new markets next year, so overall, from a headcount perspective, I think we'll be relatively disciplined next year. And the marketing spend will depend on a variety of external factors. So in our fourth quarter earnings call in March next year, we'll give out more guidance. Thank you.

所以我們的銷售和行銷支出中超過50%是與薪資相關的，可以理解為性質比較固定，其餘的與行銷相關。由於今年我們已經在幾個新市場度過了最初的快速擴張階段，而且我們明年沒有立即計劃在任何新市場推出產品，因此總體而言，從員工數量的角度來看，我認為我們將在明年相對有紀律。行銷支出將取決於各種外部因素。因此，在明年三月的第四季財報電話會議上，我們將給予更多指引。謝謝。

(spoken in foreign language)

（用外語說）

You Fan, CICC.

尤凡，中金公司。

(spoken in foreign language)

（用外語說）

Thanks, management, for taking my question. This is You Fan from CICC. And I have two questions here. The first one is regarding the AUM breakdown. How much is from the client net asset inflow and how much from the market-to-market appreciation? And with the regional breakdown of the client assets. The second question is about the breakdown of the current interest income. And also, would you please share more color on the impact of the interest rate cut on our net interest income. Thank you.

謝謝管理層回答我的問題。我是中金公司的尤凡人。我這裡有兩個問題。第一個是關於資產管理規模（AUM）細分。多少來自客戶淨資產流入，多少來自市值升值？以及客戶資產的區域細分。第二個問題是關於當期利息收入的細目。另外，請您詳細介紹一下降息對我們淨利息收入的影響。謝謝。

Thank you, You. I will answer your second question about the interest income breakdown, and I will leave the first question to Daniel.

謝謝你，你。我將回答你關於利息收入細目的第二個問題，我將第一個問題留給丹尼爾。

(spoken in foreign language)

（用外語說）

In terms of the interest income breakdowns, the structure is almost similar to the patterns in the second quarter. The interest income from our idle cash roughly account for 40% to 45% of our total interest income. And the remaining part mainly goes to the margin financing and the store borrowing lending, et cetera. There's no update in terms of the sensitivity implications from the fed rate cut.

從利息收入組成來看，結構與第二季幾乎相似。我們的閒置現金利息收入約占我們總利息收入的40%至45%。剩下的部分主要用於融資融券和店面借貸等。聯準會降息的敏感性影響方面沒有最新消息。

In the third quarter, what we observed is that given a lot of clients locking their profit in the third quarter and the absolute amount coming from the idle cash become bigger, which partially offset the negative implications of the rate cut in the US.

第三季我們觀察到，由於許多客戶在第三季鎖定了利潤，閒置現金的絕對量變大，這部分抵銷了美國降息的負面影響。

(spoken in foreign language)

（用外語說）

So in terms of our client assets growth in the quarter, over half of that comes from market appreciation of our client assets, especially towards the quarter end when China equities performed exceptionally well. So in the third quarter, overall net asset inflow remained very robust. So the number trended down a bit sequentially given the high base in the second quarter, but still well exceeded the first quarter numbers.

因此，就本季我們的客戶資產成長而言，其中超過一半來自客戶資產的市場升值，尤其是在中國股市表現異常優異的季末。所以第三季整體淨資產流入依然非常強勁。因此，考慮到第二季的高基數，該數字按順序略有下降，但仍遠遠超過第一季的數字。

And in terms of the breakdown between different geographies, Hong Kong market still contribute to the majority of our net asset inflow which followed by Singapore. And three quarters in a row, we have seen overseas markets contributed to over HKD10 billion in net asset inflow and we are very optimistic about the sustainability of net asset inflow from overseas markets. Thank you.

而從不同地區的細分來看，香港市場仍然貢獻了我們淨資產流入的大部分，其次是新加坡。我們已經連續三個季度看到海外市場貢獻了超過100億港元的淨資產流入，我們對海外市場淨資產流入的可持續性非常樂觀。謝謝。

(spoken in foreign language) Thank you.

（用外語說）謝謝。

Charles Zhou, UBS.

查爾斯·週，瑞銀。

(spoken in foreign language)

（用外語說）

So first of all, congratulations to the management. I think it's a very solid set of results. I have a follow-up question regarding the special dividend. I think the shareholders, right? So you have the buyback and also the dividend. So what's the rationale behind of giving the dividend now? And how do you see -- so do you prefer a buyback or dividend going forward? And what factors do you consider when you determining the buyback or the dividend?

首先，祝賀管理層。我認為這是一組非常可靠的結果。我有一個關於特別股息的後續問題。我想是股東吧？所以你有回購和股利。那麼現在派發股息的理由是什麼？您如何看待－未來您喜歡回購還是派發股利？在決定回購或股利時，您會考慮哪些因素？

And what do you feel the investor will prefer currently? My second question is that compared with the visible alpha consensus, we are glad to see the top line is a 4% beat but net profit is just largely in line. We also noticed there's one item of other costs and loss of HKD131.4 million, which is not small. So for management, so would you please clarify so what is -- could you please clarify for this item? And would this also affect your net profit going forward? Thanks.

您認為投資人目前更喜歡什麼？我的第二個問題是，與可見的阿爾法共識相比，我們很高興看到營收成長了 4%，但淨利潤基本上符合預期。我們也注意到，其中一項其他成本和損失為1.314億港元，金額並不小。那麼對於管理階層來說，請您澄清一下是什麼—您能澄清一下這個專案嗎？這也會影響您未來的淨利潤嗎？謝謝。

Thanks, Charles. I will take these two questions.

謝謝，查爾斯。我將回答這兩個問題。

(spoken in foreign language)

（用外語說）

Regarding the special dividend, actually, we will use a combination of share buyback and also cash dividends when we touch base with our investors, we do notice their specific group of the potential investors do care the cash dividend, which gives more visibilities of the cash inflows.

關於特別股息，實際上，當我們與投資者接觸時，我們會採用股票回購和現金股息相結合的方式，我們確實注意到他們的特定潛在投資者群體確實關心現金股息，這使現金更具可見性流入。

So going forward, actually, we will take into account different demand from different shareholders in order to demonstrate our commitment to create shareholder value to all of our shareholders. Then regarding the breakdown of others, the nature behind that is mainly due to the unrealized foreign exchange loss arising from the RMB appreciation versus US dollars and also the fluctuations of Singapore dollars versus the US dollars, both of which are all noncash items.

所以未來我們實際上會考慮不同股東的不同需求，以反映我們為所有股東創造股東價值的承諾。那麼其他的細分，其背後的本質主要是由於人民幣對美元升值以及新加坡元對美元的波動產生的未實現匯兌損失，這兩個項目都是非現金項目。

So if we -- judging by the current FX rate, the majority part of the others in the third quarter will be reversed in the fourth quarter. So if we take this -- the noise from the operations part, just focusing our key operating profit and also the top line. I think the growth -- the trend between the top line and the operating profit is almost in line. Thank you very much.

因此，如果我們——從目前的匯率來看，第三季度其他的大部分將在第四季度逆轉。因此，如果我們考慮營運部分的噪音，只需關注我們的主要營運利潤和營收。我認為成長－收入和營業利潤之間的趨勢幾乎是一致的。非常感謝。

(spoken in foreign language) Thanks is very clear.

（用外語說）謝謝說得很清楚。

Emma Xu, Bank of America Securities.

艾瑪·徐，美國銀行證券。

(spoken in foreign language)

（用外語說）

So I have two questions. The first question is about the strategies in your major markets. So you mentioned that you don't have plans for new markets next year. So probably we'll focus on existing markets, Hong Kong, Singapore and Malaysia are doing well. And this quarter, you also emphasize that US, Canada and Australia average client asset all recorded double-digit sequential growth for three consecutive quarters.

所以我有兩個問題。第一個問題是關於你們主要市場的策略。所以你提到明年沒有新市場的計畫。所以我們可能會專注於現有市場，香港、新加坡和馬來西亞表現良好。本季度，您也強調，美國、加拿大和澳洲的平均客戶資產均連續三個季度錄得兩位數的季增。

So what have you changed to the strategies in this major market so that you see the improvement in the client quality or is the major driven by the market appreciation, especially in the US market? And the second question is that there are a lot of macro events recently, including the (inaudible) card, the numerous policies from China and the US election. So do you see some meaningful changes in investors trading (inaudible)

那麼您在這個主要市場的策略上做了哪些改變，讓您看到了客戶品質的改善，還是說主要是由市場升值驅動的，尤其是在美國市場？第二個問題是最近宏觀事件很多，包括（聽不清楚）牌，中國的眾多政策以及美國大選。那麼您是否看到投資者交易發生了一些有意義的變化（聽不清楚）

(spoken in foreign language)

（用外語說）

And to briefly translate my two answers, maybe I'll take your second question first, given that's a little similar to the answer we gave out earlier. So in terms of our trading volume mix, we saw a surge and the percent of trading volume contributed by Hong Kong stocks in China ADRs in late September and early October. And then the percentage (inaudible) given the performance of China equities also pull back. But overall, the percentage increase quarter-over-quarter.

為了簡單翻譯我的兩個答案，也許我會先回答你的第二個問題，因為它與我們之前給出的答案有點相似。因此，就我們的交易量組合而言，我們看到9月底和10月初港股在中國ADR中貢獻的交易量百分比大幅上升。然後考慮到中國股市的表現，百分比（聽不清楚）也有所回落。但總體而言，該百分比逐季增加。

And in terms of US stocks, the US stocks have been generally performing very low fourth quarter to date, especially around US election, some of the technology stocks and virtual asset stocks performed exceptionally well and boosted the overall US stock trading volume. And to your first question, (inaudible) touched on a number of markets, it's hard to give a complete answer on our earnings call and happy to chat more offline.

而美股方面，四季至今美股普遍表現很低，尤其是美國大選前後，部分科技股和虛擬資產股表現異常出色，提振了美股整體成交量。對於你的第一個問題（聽不清楚）涉及許多市場，很難在我們的財報電話會議上給出完整的答案，並且很樂意在線下進行更多的交談。

But just to summarize, I think just over time, we have a better understanding of our business. We have a better understanding of our capabilities and also we've developed a better understanding of each and every one of these markets and the client demand. So we don't have a one size fits all approach towards all of our seven markets. But instead, we focus on learning more about users we develop unique product pipelines.

但總而言之，我認為隨著時間的推移，我們對我們的業務有了更好的了解。我們對我們的能力有了更好的了解，而且我們對每個市場和客戶的需求也有了更好的了解。因此，我們沒有針對所有七個市場的一刀切的方法。但相反，我們專注於更多地了解我們開發獨特產品管道的用戶。

We have different marketing messages. We emphasize on different unique selling points, and we have different client operations strategies. So overall, I think we'll continue to iterate based on our understanding of each of these other markets. Thank you.

我們有不同的行銷訊息。我們強調不同的獨特賣點，我們有不同的客戶營運策略。總的來說，我認為我們將根據我們對其他每個市場的理解繼續迭代。謝謝。

Thank you. As there are no further questions, I would now like to hand back to Daniel Yuan for any closing remarks.

謝謝。由於沒有其他問題了，我現在請袁丹尼爾發表結束語。

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

我們今天的電話會議到此結束。今天我謹代表富途管理團隊向大家表達感謝。如果您有任何其他問題，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。

Ladies and gentlemen, this concludes our today's conference call. Thank you for participating. You may now disconnect.

女士們、先生們，我們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. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。