富途控股 (FUTU) 2021 Q3 法說會逐字稿

Hello, ladies and gentlemen. Welcome to Futu Holdings Third Quarter 2021 Conference Call. (Operator Instructions)

女士們、先生們，大家好。歡迎參加富途控股2021年第三季電話會議。（操作員指令）

After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. If you have any objection, you may disconnect at this time. 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.

在管理階層發表準備好的發言後，將有一個問答環節。今天的電話會議正在錄音。如果您有任何異議，您可以立即斷開連接。現在，我想將今天的電話會議交給主持人。富途證券首席參謀長兼投資人關係主管 Daniel Yuan。先生，請繼續。

Thanks, operator, and thank you for joining us today to discuss our third quarter 2021 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 risk and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those containing 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 registration statement. So with that, I will now turn the call over to Leaf. Leaf will make his comments in Chinese, and I will translate.

謝謝，接線員，感謝您今天加入我們討論我們的 2021 年第三季收益結果。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。提醒一下，今天的電話會議可能包含前瞻性陳述。它代表了公司對未來事件的信念，而這些事件本質上並不確定且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，請參閱公司向美國證券交易委員會提交的文件，包括其註冊聲明。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. In the third quarter, we added 166,000 net new paying clients, bringing our total paying clients to about 1.2 million. This was the seventh consecutive quarter where over 50% of new paying clients were acquired organically. Our quarterly paying client retention rate slightly slipped to 97% due to dent in market sentiment.

[翻譯] 感謝大家今天的出席。第三季度，我們新增了16.6萬名淨付費客戶，使我們的付費客戶總數達到約120萬人。這是連續第七個季度超過 50% 的新付費客戶是透過自然方式獲得的。由於市場情緒低落，我們的季度付費客戶保留率略有下滑至 97%。

(foreign language)

（外語）

[Interpreted] We continue to execute on our overseas strategy. In Singapore, we iterated on client incentives and budget allocation between brand and performance marketing to optimize client acquisition efficiency. In the third quarter, we observed higher retention rate and consistent asset inflow across client cohorts. We continue to expand product offerings in Singapore by launching U.S. IPO subscriptions, structured warrants and fund products.

[翻譯]我們繼續執行我們的海外策略。在新加坡，我們迭代了客戶激勵措施以及品牌和績效行銷之間的預算分配，以優化客戶獲取效率。在第三季度，我們觀察到客戶群的留存率更高且資產流入持續。我們透過推出美國 IPO 認購、結構性認股權證和基金產品，繼續擴大在新加坡的產品供應。

(foreign language)

（外語）

[Interpreted] In Hong Kong, we remain the top-of-mind retail broker as the number of our Hong Kong users already constituted 1/3 of the adult population in Hong Kong. We intend to further penetrate into the young and tech-savvy population and expand into the demographics that are currently not well represented in our client base. Despite the new players entering into the Hong Kong market, which has always been a very crowded space, we are confident to extend our leadership position because we believe the key success factors of a broker include a trustworthy brand, superior user experience, an end-to-end proprietary trading infrastructure, a strong capital base and close relationships with commercial banks, which all take time to cultivate and are where our competitive strengths lie.

[翻譯]在香港，我們仍然是最受歡迎的零售經紀商，因為我們的香港用戶數量已經佔香港成年人口的三分之一。我們打算進一步滲透到年輕且精通科技的人群中，並擴展到目前客戶群中代表性不夠強的人口群體。儘管香港市場一直競爭十分激烈，不斷有新參與者進入，但我們有信心擴大我們的領導地位，因為我們相信經紀商成功的關鍵因素包括值得信賴的品牌、卓越的用戶體驗、端到端的自營交易基礎設施、強大的資本基礎以及與商業銀行的密切關係，這些都需要時間來培育，而這正是我們的競爭優勢所在。

(foreign language)

（外語）

As of quarter end, total client assets were HKD 424 billion, representing 111% year-over-year increase and 16% quarter-over-quarter decrease. The sequential decrease was largely due to the sharp pullback of some Chinese new economy stock, though this mark-to-market impact was alleviated by robust net asset inflow. Average client asset balance dropped to HKD 363,000, which was tracked by lower account balance in new markets. However, in spite of the challenging market backdrop, both total and average client assets in Singapore increased sequentially, up 52% and 11%, respectively. For clients that we acquired 2 quarters prior, their average net asset inflow and account balance both tripled.

截至季末，客戶資產總額為4,240億港元，年增111%，季減16%。環比下降主要是由於部分中國新經濟股的大幅回調，不過強勁的淨資產流入緩解了這種以市價計價的影響。平均客戶資產餘額下降至363,000港幣，這是由於新市場的帳戶餘額較低。然而，儘管市場背景充滿挑戰，新加坡的總客戶資產和平均客戶資產仍持續成長，分別成長了 52% 和 11%。對於我們在兩個季度前獲得的客戶，他們的平均淨資產流入和帳戶餘額都增加了兩倍。

(foreign language)

（外語）

[Interpreted] Trading volume was HKD 1.4 trillion, up 33% year-over-year and 3% quarter-over-quarter. HKD 680 billion or 50% of total trading volume came from U.S. stock trading, down 19% quarter-over-quarter due to lower trading turnover of U.S. tech stocks. Meanwhile, we continue to gain market share in Hong Kong futures and options trading.

[解讀]成交額為1.4兆港元，較去年同期成長33%，較上季成長3%。其中，美國股票成交量為6,800億港元，佔總成交量的50%，較上季下降19%，原因是美國科技股成交量下降。同時，我們在香港期貨及選擇權交易的市佔率持續擴大。

(foreign language).

（外語）。

[Interpreted] Moneys Plus established new partnerships with prominent asset managers, including Schroders and Carlyle, bringing our total asset management partners to 56. By the end of the third quarter, Client Assets and Wealth Management reached HKD 17.7 billion, up 132% year-over-year. About 10% of our paying clients held wealth management positions. We further leaned into products and services for high-net-worth clients while onboarding more alternative funds and working with renowned asset managers to offer curated online workshops.

[翻譯] Moneys Plus 與施羅德和凱雷等知名資產管理公司建立了新的合作夥伴關係，使我們的資產管理合作夥伴總數達到 56 個。截至第三季末，客戶資產及財富管理規模達177億港幣，較去年同期成長132%。我們的付費客戶中約有 10% 擔任財富管理職位。我們進一步傾向於為高淨值客戶提供產品和服務，同時引入更多另類基金並與知名資產管理公司合作提供精心策劃的線上研討會。

(foreign language)

（外語）

[Interpreted] As of quarter end, we have 215 IPO and IR clients as well as 325 ESOP solutions clients, up 165% and 158% year-over-year. Companies include (inaudible) adopted our ESOP service in the third quarter. Over 700 companies have opened enterprise accounts with us, including over 150 listed companies with market capitalization north of HKD 10 billion. In the third quarter, BYD Auto, JD Health, Pop Mart and Anta started to use our enterprise account to communicate with retail investors and post business updates.

[解讀] 截至季末，我們擁有 215 家 IPO 和 IR 客戶以及 325 家 ESOP 解決方案客戶，年增 165% 和 158%。包括（聽不清楚）在內的公司在第三季採用了我們的 ESOP 服務。已有超過700家企業在我們這裡開立企業帳戶，其中包括超過150家上市公司，市值超過100億港幣。第三季度，比亞迪汽車、京東健康、泡泡瑪特、安踏開始使用我們的企業帳號與散戶溝通，發佈業務動態。

(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 Arthur 來討論我們的財務表現。

Thanks, Leaf and Daniel. Please allow me to walk you through our financial performance in the third quarter. All the numbers are in Hong Kong dollars unless otherwise noted. Our total revenue was $1.7 billion, up 83% year-over-year and 10% Q-over-Q. Brokerage commission and handling charge income was $933 million, an increase of 66% year-over-year and 17% Q-on-Q. The increase was driven by the 33% year-over-year growth in total trading volume and a higher blended commission rate of 6.9 basis points.

謝謝，Leaf 和 Daniel。請容許我向您介紹我們第三季的財務表現。除非另有說明，所有數字均為港元。我們的總營收為 17 億美元，比去年同期成長 83%，比上一季成長 10%。經紀佣金及手續費收入為 9.33 億美元，比去年同期增長 66%，比上一季增長 17%。成長的動力來自於總交易量年增33%以及混合佣金率上漲6.9個基點。

Since most of our clients adopt the commission per share pricing model for U.S. stock trading, a decrease in the average share price of the stock they trade, resulting in a higher blended commission rate. Higher contribution from derivatives trading also support our commission rate expansion. Interest incomes was $632 million, an increase of 129% year-over-year and 4% Q-on-Q. The year-over-year and Q-over-Q increase was both driven by higher margin financing and the security lending income, partially offset by lower IPO financing interest income.

由於我們的大多數客戶都採用每股佣金定價模式進行美國股票交易，因此他們交易的股票的平均股價下降，導致混合佣金率上升。衍生性商品交易的貢獻增加也支持我們的佣金率擴大。利息收入為 6.32 億美元，年增 129%，季增 4%。年成長和環比成長均得益於保證金融資和證券借貸收入的增加，但被 IPO 融資利息收入的下降部分抵消。

Other income was $166 million, up 56% year-over-year and down 2% Q-on-Q. The year-over-year increase was primarily due to increase in enterprises public relationship service charge income and the currency exchange service income. The Q-over-Q decrease was mainly due to the decrease in IPO subscription fees and underwriting fee income under inactive IPO market. Our total costs were $267 million, an increase of 47% from $182 million in the third quarter of 2020.

其他收入為 1.66 億美元，年增 56%，季減 2%。年成長主要由於企業公關服務費收入及貨幣兌換服務收入增加。環比下降主要由於IPO市場不活躍導致IPO申購費及承銷費收入減少。我們的總成本為 2.67 億美元，比 2020 年第三季的 1.82 億美元增加了 47%。

Brokerage commission and handling charge expenses was $125 million, an increase of 24% year-over-year and a decrease of 14% Q-on-Q. The expenses didn't grow in line with the brokerage commission and handling charge income due to our upgraded service package with our U.S. clearing house and the lower IPO subsequent fees. Interest expenses were $74 million, up 57% year-over-year and down 7% Q-over-Q.

經紀佣金及手續費支出為 1.25 億美元，較去年同期成長 24%，較上季下降 14%。由於我們升級了與美國清算所的服務套餐以及降低了IPO後續費用，因此費用並沒有隨著經紀佣金和手續費收入的增長而同步增長。利息支出為 7,400 萬美元，年增 57%，季減 7%。

The year-over-year increase was due to higher margin financing interest expenses and higher expenses associated with our securities borrowing and the lending business. Though partially offset by lower IPO financing interest, interest expenses did increase in line with interest income as we increasingly shift our funding mix towards lower cost funding sources. Processing and servicing costs were $67 million, up 100% year-over-year and 25% Q-on-Q. The increase was primarily due to increase in system usage fees and the cloud service fees to possess a higher number of concurrent trades. As a result, our total gross profit was $1.64 billion, an increase of 92% from $764 million in the third quarter of 2020.

年比增長是由於保證金融資利息支出增加以及與我們的證券借貸業務相關的支出增加。儘管利息支出被較低的 IPO 融資利息部分抵消，但隨著我們越來越多地將融資組合轉向成本較低的融資來源，利息支出確實與利息收入一起增加。加工和服務成本為 6,700 萬美元，較去年同期成長 100%，較上季成長 25%。成長的主要原因是系統使用費及為實現更多並發交易而產生的雲端服務費增加。因此，我們的總毛利為 16.4 億美元，較 2020 年第三季的 7.64 億美元成長 92%。

Gross margin was 85% as compared to 81% in the third quarter of 2020. Our total operating expenses were $764 million, up 177% year-over-year and 18% Q-over-Q. We continue to invest in international markets, and we estimate over 30% of our operating costs were devoted to overseas markets. R&D expenses was $224 million, up 50% year-over-year and 29% Q-on-Q. We continue to add headcount to support the new product offering, U.S. clearing capabilities and the product customization for international markets.

毛利率為 85%，而 2020 年第三季為 81%。我們的總營運費用為 7.64 億美元，年增 177%，季增 18%。我們繼續在國際市場進行投資，估計超過30%的營運成本都投入了海外市場。研發費用為 2.24 億美元，較去年同期成長 50%，較上季成長 29%。我們將繼續增加員工數量以支持新產品的供應、美國清算能力以及針對國際市場的產品客製化。

Approximately 40% of our R&D personnel were dedicated to our moomoo product nowadays. Selling and marketing expenses were $403 million, up 263% year-over-year and 7% Q-on-Q. The rising spending was driven by higher branding and marketing expenses in Singapore and in the U.S., in particular. In the third quarter, approximately 40% of our selling and marketing expenses were spent on overseas client acquisition. G&A expenses were $137 million, an increase of 122% year-over-year and 42% Q-on-Q.

目前，我們大約有 40% 的研發人員致力於我們的 moomoo 產品。銷售和行銷費用為 4.03 億美元，年增 263%，季增 7%。支出的增加主要是由於新加坡和美國的品牌和行銷費用增加。第三季度，我們約40%的銷售和行銷費用用於海外客戶獲取。一般及行政開支為 1.37 億美元，年增 122%，季增 42%。

The increase was primarily due to increase in headcount for G&A personnel. As a result, our non-GAAP adjusted net income increased by 58% year-over-year and 17% Q-on-Q to $646 million. And non-GAAP net margin for the quarter was 37%. That concludes our prepared remarks. We now like to open the call to questions. Operator, please go ahead.

成長的主要原因是一般及行政人員人數增加。因此，我們的非 GAAP 調整後淨收入年增 58%，季增 17%，達到 6.46 億美元。本季非公認會計準則淨利率為 37%。我們的準備好的演講到此結束。我們現在開始回答問題。接線員，請繼續。

Thank you.

謝謝。

(Operator Instructions) Our first question is from the line of Della Zeng of TH Capital.

(操作員指示) 我們的第一個問題來自泰合資本的 Della Zeng。

I have two. The two many about the regulation impact actually.

我有兩個。這兩項法規其實影響頗多。

The first one is, you know the new jet from cyberspace administration of China requires cybersecurity assessment for listing in Hong Kong, well, especially for tech companies with data over 1 million users. So my question is, do you actually see any negative impact on your IPO pipeline because of the new regulation from CAC and you will expect the IPO pace in fourth quarter and next year will be slowed down a lot?

第一個是，你知道中國網信部門的新飛機在香港上市需要網路安全評估，特別是對於擁有超過 100 萬用戶資料的科技公司。所以我的問題是，您是否認為國家網路信辦的新規定會對您的 IPO 管道產生負面影響？您是否預計第四季和明年的 PO 速度會大幅放緩？

The second one is in terms of your customer acquisition. There are some concerns about legality of offshore trading by online brokers. Just wondering if management can shed some light on the impact on the government regulation. Well, especially for customer acquisition in Mainland China, people may feel hesitate to open new accounts due to the regulatory concerns. Well, additionally, will that affect your customer acquisition strategy? Let me translate myself.

第二個是關於客戶獲取。人們對網路經紀商進行離岸交易的合法性存在一些擔憂。只是想知道管理階層是否可以闡明對政府監管的影響。嗯，特別是在中國大陸的客戶獲取方面，人們可能會因為監管問題而猶豫是否開設新帳戶。那麼，另外，這會影響您的客戶獲取策略嗎？讓我自己翻譯一下。

(foreign language)

（外語）

Thank you. I will take the second question first. I will leave the first question to my colleague, Leaf. In terms of the China regulations, I think we are not in the best position to prejudge what the regulator will do. I think so far, the impact to our client acquisitions in the Great China areas is manageable. I can share a little bit more color, which I think may be helpful for analysts and also the investors to gauge how the negative impact on the recent headline use because of that, what's the implication to our client acquisitions across board. Definitely, we see certain asset outflows among clients in the Great China areas, amid the concerns over media report.

謝謝。我先回答第二個問題。我將第一個問題留給我的同事 Leaf。就中國法規而言，我認為我們無法預先判斷監管機構將會採取什麼行動。我認為到目前為止，這對我們在大中華區的客戶收購的影響是可控的。我可以分享更多細節，我認為這可能有助於分析師和投資者判斷這對近期頭條新聞的負面影響如何，以及這對我們整個客戶收購有何影響。毫無疑問，由於對媒體報告的擔憂，我們看到大中華地區的客戶出現了一定程度的資產外流。

Overall speaking, we think the impact is still very short term and manageable from mid -- from the mid-October to mid-November, the net asset outflows accounts for less than 2% of our total client assets. And the situation started back normal from last week. In my personal thought, I think the worst is already behind us. Of course, the market volatility alongside with seasonality effect in Q4, together with this headline news, definitely enhanced attrition rate for existing paying clients and also create some challenges for new client acquisition across the board in the near term. But we think the overall speaking, the situation is still within our control.

整體來說，我們認為影響還是很短期的，從中旬開始還是可以控的——10月中旬到11月中旬，淨資產流出占我們客戶總資產的不到2%。從上週起情況開始恢復正常。我個人認為，最糟糕的情況已經過去了。當然，第四季度的市場波動以及季節性影響，再加上這一頭條新聞，無疑會增加現有付費客戶的流失率，並且在短期內給全面獲取新客戶帶來一些挑戰。但我們認為，整體來說，情況仍在我們的控制範圍內。

(foreign language)

（外語）

[Interpreted] Yes. We are business as usual here at Futu, and our business model is nothing new. So before our inception, this business has been there for years, and our business size is small relative to the whole industry. So our business model and how we serve our clients are identical to a lot of the other international Hong Kong and China brokers and banks in Hong Kong that help Chinese base access overseas trading, and we are operating under the same set of laws and regulations.

[翻譯] 是的。富途的業務一切如常，我們的商業模式也沒有什麼新意。所以在我們成立之前，這個業務已經存在好幾年了，而且我們的業務規模相對於整個產業來說很小。因此，我們的商業模式和客戶服務方式與許多其他幫助中國客戶進行海外交易的國際香港和中國經紀商和香港銀行相同，並且我們在同一套法律法規下運作。

You have to ask through the differences than in comparison to our peers, we invest more heavily into technology and innovation, and we attach more importance to user experience. And we have always been embracing the regulations and have a very high set of standards for operational compliance, and we are actively and transparently communicating with the regulators, and we anticipate and welcome more guidance from the regulators to both us and the industry as a whole. And if there are new regulatory guidance is coming out, I think we'll abide by these regulations as soon as possible. And as a listed company, we'll timely update any new information available to us.

你要問的是與同業相比的差異，我們對科技和創新的投入更大，我們更重視使用者體驗。我們一直嚴格遵守法規，對營運合規有著非常高的標準，我們也積極透明地與監管機構溝通，我們期待並歡迎監管機構為我們和整個行業提供更多指導。如果有新的監管指導出台，我認為我們會盡快遵守這些規定。作為一家上市公司，我們會及時更新任何可用的新資訊。

Yes. And also to your question about whether the IPO pipeline could be influenced? We feel like the IPO pipeline is more dependent on the overall market environment.than on the cybersecurity kind of investigations. So I think how the IPO pipeline will turn out in Hong Kong in the next couple of quarters will be largely dependent on the overall direction of the market. And also, I just want to point out that historically, we achieved like high single digit of our revenue through IP-related businesses, including IPO subscription fees and the IPO margin financing income. So we don't think it's a material impact on our business. and we have a lot more levers to go to further our growth.

是的。還有你問的 IPO 管道是否會受到影響？我們認為，IPO 流程更依賴整體市場環境，而不是網路安全調查。因此，我認為未來幾季香港 IPO 的進展如何，很大程度上取決於市場的整體走向。另外，我只想指出，從歷史上看，我們透過IP相關業務實現了高個位數的收入，包括IPO認購費和IPO保證金融資收入。因此我們認為這不會對我們的業務產生重大影響。我們還有更多手段可以推動我們的進一步發展。

And as we mentioned in our opening remarks, we think there is still a huge underpenetrated population in Hong Kong that we could tap into and a lot of the international markets that we have entered, including the Singapore and the U.S. offers significant run rate for growth.

正如我們在開場白中所提到的，我們認為香港仍有大量尚未普及的人口，我們可以充分利用這些人口，而且我們已經進入的許多國際市場，包括新加坡和美國，都具有顯著的成長潛力。

Our next question is from the line of Katherine Lei of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Katherine Lei。

(foreign language)

（外語）

I will translate for myself. So just 2 questions from me. First, just wondering the management help us to analyze how to view the overseas market growth opportunity or the room for growth for Futu?

我會自己翻譯。我只想問兩個問題。首先，想請問管理階層能否幫助我們分析如何看待富途的海外市場成長機會或成長空間？

And then the second question is, can the company give us some guidance in terms of the fourth quarter-to-date operational data trend, such as the velocity, client assets, et cetera?

第二個問題是，公司能否就第四季迄今的營運數據趨勢（例如速度、客戶資產等）給予我們一些指引？

Okay. Sure. Katherine, let me just supplement the answer I mentioned before for your second question. Still, I will leave the first question to Leaf. I think in terms of the client activities, we see investor sentiment is warming up in the fourth quarter. Of course, in fourth quarter, we faced some long holidays such as National Holiday and also Christmas. If we do take out the holiday effect in Q4, we expect the overall trading volume may be similar to Q3 based on the current run rate.

好的。當然。凱瑟琳，讓我補充一下我之前對你第二個問題的回答。不過，我還是會把第一個問題留給 Leaf。我認為從客戶活動來看，我們看到第四季投資者情緒正在升溫。當然，在第四季度，我們面臨一些長假期，例如國慶日和聖誕節。如果我們確實消除第四季度的假期效應，我們預計根據目前的運行率，整體交易量可能與第三季相似。

In terms of client assets, as I mentioned before, we definitely got some negative asset outflows because of the headline news recently. But the situation start to back to normal since last week. And in particular, we see very encouraging signals in our overseas markets such as Singapore. In our opening remarks, Leaf mentioned that our average client assets in Singapore already jumped 11% Q-on-Q basis. I do think on top of that, we will continue to see on a cohort and also on an absolute basis in Singapore market, we will still see another at least 15% increase Q-on-Q on top of the growth that we achieved in Q3. And also in terms of our wealth management products, so far, our asset and wealth management segment has demonstrated our strong resilience, and we do expect more product offering to be launched in Q4, which may further drive our AUM continue to go up.

就客戶資產而言，正如我之前提到的，由於最近的頭條新聞，我們確實出現了一些負資產流出。但自上週起情況開始恢復正常。特別是我們在新加坡等海外市場看到了非常令人鼓舞的訊號。在開幕詞中，Leaf 提到我們在新加坡的平均客戶資產較上季已經成長了 11%。我確實認為，除此之外，我們將繼續看到，在新加坡市場，從群體和絕對基礎上看，在第三季度實現的增長基礎上，我們仍將看到環比再增長至少 15%。就我們的財富管理產品而言，到目前為止，我們的資產和財富管理部門已經表現出強大的韌性，我們確實預計第四季度將推出更多產品，這可能會進一步推動我們的 AUM 繼續上升。

(foreign language)

（外語）

I think in Q3, we had about 2.2 million users in Hong Kong, accounting for about 32% of the population over age 18 in this region, meaning that about 1 out of every 3 Hong Kong adults is our user now. And our penetration rate among Hong Kong population between the age of 20 and 29 is about 20%. And meaning that 1 out of every 5 in this group uses our product. So in the Hong Kong market, we maintained a high penetration rate among young tech-savvy population, while focusing on acquiring the underpenetrated groups such as the middle-aged people and the female groups, et cetera. And in Singapore, the adult population is about 4.9 million. And assuming that about 30% of them have a brokerage account, there are approximately 1.5 million retail investors representing great potential for further penetration. And also as part of our future international strategy, we will take Singapore as our Southeast Asian headquarter spend into other countries in this region.

我認為在第三季度，我們在香港擁有約 220 萬用戶，約佔該地區 18 歲以上人口的 32%，這意味著現在大約每 3 個香港成年人中就有 1 個是我們的用戶。我們在香港20至29歲人口的滲透率約為20％。這意味著該群體中每 5 人中就有 1 人使用我們的產品。因此在香港市場，我們在年輕精通科技的人群中保持了較高的滲透率，同時專注於獲取中年人、女性群體等滲透率較低的群體。新加坡的成年人口約490萬。假設其中約有30％的人擁有經紀帳戶，則約有150萬散戶投資者，具有進一步滲透的巨大潛力。而且作為我們未來國際戰略的一部分，我們將以新加坡作為東南亞總部，擴展到該地區的其他國家。

And similar to Singapore, other Southeast Asian countries lag in terms of their brokerage service capabilities and user experience. And we see that there are approximately 33 million Chinese population in SEA and 22 million of whom are Internet users. And based on the IP address, Futu' existing users, we think that Futu has built a high brand recognition in many Southeast Asian countries already. And last but not least, I think we see potential for further growth in the U.S. market as well. We believe that moomoo (inaudible) can balance between user-friendly mobile design and advanced product features and invest very well, filled the market gap between the incumbents in the market and a lot of these online brokers. And our net new clients in the U.S. increased meaningfully in Q3 on a sequential basis, benefiting strong our initiatives and broadening client acquisition channels. And going forward, we'll adjust our client acquisition strategy based on the market dynamics to reach our targeted client groups.

而與新加坡類似，其他東南亞國家在經紀服務能力和使用者體驗也落後。我們看到東南亞華人人口約有3300萬，其中2200萬是網路使用者。而根據IP位址、富途現有的用戶，我們認為富途已經在東南亞許多國家建立了較高的品牌知名度。最後但同樣重要的一點是，我認為我們也看到了美國市場進一步成長的潛力。我們相信 moomoo（聽不清楚）能夠在用戶友好的行動設計和先進的產品功能之間取得平衡，並進行良好的投資，填補市場現有企業和許多線上經紀商之間的市場空白。我們在美國的淨新增客戶數量在第三季環比大幅增加，這得益於我們的舉措以及客戶獲取管道的拓寬。未來，我們將根據市場動態調整我們的客戶獲取策略，以接觸我們的目標客戶群。

Our next question is from the line of Zoey Zong of Jefferies.

我們的下一個問題來自 Jefferies 的 Zoey Zong。

(foreign language)

（外語）

I have 2 questions. First, we noticed that company newly added 166,000 paying clients in Q3. Could you please provide some color about the user mix like how much came from Hong Kong, Singapore, Mainland and the U.S? And could you please also share the mix for the 1.2 million total paying clients?

我有兩個問題。首先，我們注意到公司第三季新增了166,000名付費客戶。您能否提供一些有關用戶結構的詳細信息，例如有多少來自香港、新加坡、大陸和美國？您能否分享一下總計 120 萬付費客戶的組合情況？

And my second question is regarding customer acquisition cost. So the impact customer acquisition cost was around HKD 2,400 in Q3. So how should we expect this next year?

我的第二個問題是關於客戶獲取成本。因此第三季的影響客戶獲取成本約為 2,400 港幣。那我們該如何期待明年呢？

Sure. I will take both questions. I think number one, the breakdown for the new clients acquired in Q3, in general, Great China areas account for roughly 60% of the new paying clients acquired for the quarter. The remaining 40% Singapore roughly accounts for 28%, and the remaining 11% belongs to the U.S.

當然。我將回答這兩個問題。我認為第一，第三季新增客戶的分佈狀況，整體來看，大中華區約佔本季新增付費客戶的 60%。剩下的40%新加坡約佔28%，剩下的11%屬於美國。

And also for your second question in terms of the marketing spending, I think what we focus internally is more the ARPU versus cap ratio. Definitely, you see the cap numbers in the third quarter increased from a Q-on-Q basis. Mainly, I think it's due to the -- because the market conditions, which led our attrition rate temporary go higher Therefore, on an average basis, you can see the cap number slightly go up from a Q-on-Q basis. It is very difficult for us to give you positive guidance for the cap number, which we heavily been impact by the market conditions, as you can imagine. But I think in our conviction, user engagement is always the most important things we care because the transition cost for the paying users to other competitors or to other channels take very high time threshold. Therefore, we still will more focus on the growth, definitely, we will on a close basis monitor our unit economics to make it more justifiable.

關於您提到的第二個問題，關於行銷支出，我認為我們內部關注的更多是 ARPU 與資本化比率。毫無疑問，您會看到第三季的上限數字較上季有所增加。主要地，我認為這是由於——因為市場條件，導致我們的流失率暫時上升，因此，從平均基礎上看，你可以看到上限數字與上一季相比略有上升。我們很難為您提供關於上限數字的積極指導，因為您可以想像，這受到市場條件的嚴重影響。但我堅信，用戶參與度始終是我們最關心的事情，因為付費用戶轉向其他競爭對手或其他管道的成本需要很高的時間門檻。因此，我們仍然將更加關注成長，當然，我們將密切監控我們的單位經濟狀況，以使其更加合理。

For instance, if we look at our Singapore numbers, if -- I think back to second quarter this year, if we use the CAT number and also ARPU number at that time, our payback period for our Singapore paying clients is around 2.5 years. But now you can see after one quarter, our average client asset cohort already increased by 11%, and we do expect there will be another 15% jump in the fourth quarter. So on a more forward-looking perspective, the unit economics will become more and more makes sense after we further gain the trust and the confidence from the existing users who will inject more fundings into their accounts. And also at the same time, we will provide more product offerings to enhance our cap rate.

例如，如果我們查看新加坡的數據，如果——我回想今年第二季度，如果我們使用當時的 CAT 數據和 ARPU 數據，我們對新加坡付費客戶的回報期約為 2.5 年。但現在您可以看到，一個季度後，我們的平均客戶資產群已經增加了 11%，我們預計第四季還會再成長 15%。因此，從更具前瞻性的角度來看，當我們進一步獲得現有用戶的信任和信心並向他們的帳戶注入更多資金後，單位經濟學將變得越來越有意義。同時，我們將提供更多產品來提高我們的資本化率。

The next question is from the line of Charles Zhou of Credit Suisse.

下一個問題來自瑞士信貸的查爾斯·週 (Charles Zhou)。

(foreign language)

（外語）

I'll translate by myself. The first question, I just want to clarify, the 2% you just mentioned about outflows. So what do you mean by that? You just mentioned Greater China? Or which period, can you maybe just give us a little bit more color on that?

我自己來翻譯一下。第一個問題，我只想澄清一下，你剛才提到的2%的流出。那你這話是什麼意思呢？您剛才提到了大中華區？或是哪個時期，您能否提供我們更多詳細資訊？

Second question, you also mentioned that the onboarding process, the due diligence and also the risk management is same as banks. So do you mean that same as commercial bank or private bank for a security brokerage account?

第二個問題，您也提到入職流程、盡職調查以及風險管理與銀行相同。那你的意思是證券經紀帳戶和商業銀行或私人銀行的一樣嗎？

I also have 2 more questions here. The first one is we understand Futu has not adopted a 0 commission policy like many competitors do. So we have seen some promotion that offer 0 commission trading either by using a promotion code account opening or redeeming coupons and afterwards. So how do we think about the risk going forward in Hong Kong, Singapore as well as the monetization of the client AUM?

我這裡還有兩個問題。首先，我們了解富途並未像許多競爭對手一樣採用零佣金政策。因此，我們看到一些促銷活動，透過使用促銷代碼開戶或兌換優惠券等提供 0 佣金交易。那我們該如何看待香港、新加坡未來的風險以及顧客AUM的貨幣化呢？

The last one is also about the share buyback. So can you maybe give us a bit more color about your share back so far and say, at what price? And also like how many shares have you already buybacks?

最後一個也是關於股票回購。那麼能否向我們詳細介紹一下您目前的股票價格呢？還有您已經回購了多少股票？

Sure. Charles, you asked 4 questions. Let me just take number one, the number fourth first. Still, I will leave the second question and also the third question to Leaf. I think number -- in terms of the client asset outflows, as I mentioned before, I just want to share some latest colors in terms of the implications from the recent headline news. It is very difficult to attribute our client asset outflows because of -- whether because of the recent headline use or because of other reasons, but just to give you some very simple statistics, if we look back in the past 1 month, we do have some net asset outflow. I think the amount is roughly in the range of 1% to 2% of our total client asset balance at the end of the third quarter. So just to give you some sense in terms of the number.

當然。查爾斯，你問了 4 個問題。讓我先說第一個，也就是第四個。不過，我會把第二個問題和第三個問題留給 Leaf。我認為，就客戶資產流出而言，正如我之前提到的，我只想根據最近的頭條新聞的含義分享一些最新的情況。很難將客戶資產流出歸因於——無論是因為最近的頭條新聞還是其他原因，但只是給你一些非常簡單的統計數據，如果我們回顧過去 1 個月，我們確實有一些淨資產流出。我認為這個金額大約占我們第三季末客戶資產總額的 1% 到 2%。只是為了讓你對數字有一些概念。

And also for the share buyback, I think definitely, we will -- this is a 13 months share buyback programs and also according to the SEC regulations, actually, we cannot conduct any share buyback during the result, the black power period. Therefore, so far, we have not conducted any share buyback yet.

至於股票回購，我認為我們肯定會——這是一個為期 13 個月的股票回購計劃，而且根據美國證券交易委員會的規定，實際上，我們不能在黑色權力期間進行任何股票回購。因此，到目前為止，我們還沒有進行任何股票回購。

(foreign language)

（外語）

Sure. Yes. We -- as we mentioned earlier, we're advised by the same set of regulations and laws in terms of our account opening procedures, KYC and AML, et cetera. So we believe that what we do is in line with what other brokers and banks in Hong Kong, they currently do. We don't think there are differences.

當然。是的。正如我們之前提到的，我們在開戶程序、KYC 和 AML 等方面遵循同一套法規和法律。因此，我們相信，我們的做法與香港其他經紀商和銀行目前的做法一致。我們認為沒有差異。

(foreign language)

（外語）

We don't think the competitive environment has changed much in the Hong Kong market. And in fact, this price wall between our competitors has been happening for a number of years. And as I mentioned in our opening remarks, we believe that the key success factors of a broker include a trustworthy brand, superior user experience, this end-to-end proprietary trading infrastructure, a very strong capital base and close relationships with commercial banks, and these really all take time to develop, and Futu has developed strong competitive strength in these areas.

我們認為香港市場的競爭環境並沒有太大變化。事實上，我們的競爭對手之間的價格障礙已經存在好幾年了。正如我在開場白中提到的，我們認為經紀商成功的關鍵因素包括值得信賴的品牌、卓越的用戶體驗、端到端的自營交易基礎設施、非常強大的資本基礎以及與商業銀行的密切關係，這些都需要時間來發展，而富途在這些領域已經形成了強大的競爭實力。

And also, we understand that the majority of the trading costs for Hong Kong stocks is coming from stamp duty, which is currently 3 bps. We currently charge a 3 bps commission, which is relatively low in comparison to the stamp duty cost. So we don't feel like the price well has affected margin and we don't have plans to change our pricing. And if pricing is the only lever our competitors can pull when they enter into the market, if they don't see financial operational results in the short term, they may feel a lot of pressure.

另外，我們了解到香港股票的交易成本大多來自印花稅，目前為3個基點。我們目前收取 3 個基點的佣金，與印花稅成本相比相對較低。因此，我們認為價格不會影響利潤，而且我們也沒有計劃改變定價。如果定價是我們競爭對手進入市場時唯一的槓桿，如果他們在短期內看不到財務營運成果，他們可能會感受到很大的壓力。

We have now reached the end of our question-and-answer session. And I would like to hand the conference back to Mr. Yuan for closing remarks. Please continue.

我們的問答環節現在已經結束。現在我想將會議交還給袁先生，請他作最後發言。請繼續。

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

今天的通話到此結束。我謹代表富途管理團隊，感謝你們今天的到來。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。

Thank you. That concludes our conference for today, and thank you for participating. You may now all disconnect.

謝謝。今天的會議到此結束，感謝大家的參加。現在你們都可以斷開連結了。

[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。 ]