富途控股 (FUTU) 2021 Q2 法說會逐字稿

Hello, ladies and gentlemen. Welcome to Futu Holdings Second Quarter 2021 Conference Call. (Operator Instructions) Today's conference call is being recorded. (Operator Instructions)

女士們、先生們，大家好。歡迎參加富途控股2021年第二季電話會議。（操作員指示）今天的電話會議正在錄音。（操作員說明）

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

現在我想將會議交給今天電話會議的主持人，富途首席幕僚兼 IR 主管 Daniel Yuan。請繼續，先生。

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

感謝營運商，感謝您今天加入我們討論我們 2021 年第二季的獲利結果。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；徐彥，資深副總裁。

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 registration statement.

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。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，我現在將把電話轉給 Leaf。Leaf會用中文發表評論，我會翻譯。

(foreign language)

（外語）

Hello, everyone. Thank you for joining the earnings call today. We achieved a milestone of 1 million paying clients as of the end of second quarter, translating into a 230% year-over-year growth. Net addition was 211,000, our second best quarter in history. Our relentless pursuit of premier user experience and brand image rewarded us with yet another quarter of rapid client-based expansion over 50% organically required paying clients, and a high-paying client retention rate of 97.8%.

大家好。感謝您參加今天的財報電話會議。截至第二季末，我們實現了 100 萬付費客戶的里程碑，年增 230%。淨增人數為 211,000 人，是我們歷史上第二好的季度。我們對一流用戶體驗和品牌形象的不懈追求讓我們又一個季度以客戶為基礎的快速擴張，有機需求的付費客戶超過 50%，高付費客戶保留率達到 97.8%。

(foreign language)

（外語）

Going forward, our key growth strategies would be to defend and expand our leading position in Hong Kong, further take market share in Singapore and drive self-clearing in the U.S. to improve monetization and operational flexibility.

展望未來，我們的主要成長策略將是捍衛和擴大我們在香港的領先地位，進一步佔據新加坡的市場份額，並推動美國的自我清算，以提高貨幣化和營運靈活性。

In the second quarter, Singapore contributed nearly half of our new paying clients. Singapore represents a blue ocean opportunity, and we will leverage marketing and word of mouth referral to further capture user mind share.

第二季度，新加坡貢獻了我們新付費客戶的近一半。新加坡代表著一個藍海機遇，我們將利用行銷和口碑推薦來進一步捕捉用戶的心智份額。

In the U.S., our self-clearing initiative reported accelerating progress as we now have migrated about 350 U.S. stocks to our proprietary clearance system. We are targeting to self-clear 50% of U.S. stocks by the end of this year.

在美國，我們的自我清算計畫取得了加速進展，目前我們已將約 350 隻美國股票遷移至我們的專有清算系統。我們的目標是在今年年底前自行清理 50% 的美國股票。

(foreign language)

（外語）

Our total client assets were HKD 503 billion at quarter end, representing 253% growth on a year-over-year basis and 9% growth on a quarter-over-quarter basis, despite challenging mark-to-market impact. Average client assets came down sequentially to HKD 503,000 as paying client acquisitions in new markets picked up and drags average balance.

截至季末，我們的客戶總資產為 5,030 億港元，儘管按市值計算的影響頗具挑戰性，但同比增長 253%，環比增長 9%。由於新市場的付費客戶收購增加並拖累平均餘額，平均客戶資產環比下降至 503,000 港元。

(foreign language)

（外語）

Total trading volume was up 104% year-over-year to HKD 1.3 trillion, of which U.S. trading constituted approximately 64%. Trading volume came down meaningfully from the first quarter due to a much lower turnover rate across different trading markets and client cohorts. We have seen our clients stay on the sideline to mid-market uncertainty, and we expect our trading volume growth in the coming quarters should be driven mostly by expansion in client counts and assets rather than trading turnover should current market environment persist.

總交易量較去年同期成長 104% 至 1.3 兆港元，其中美國交易量約佔 64%。由於不同交易市場和客戶群的換手率大幅降低，交易量較第一季大幅下降。我們看到我們的客戶對中端市場的不確定性持觀望態度，我們預計，如果當前的市場環境持續下去，未來幾季我們的交易量成長將主要由客戶數量和資產的擴張驅動，而不是交易額的成長。

(foreign language)

（外語）

Our wealth management business, Money Plus, has been relatively immune to the monthly downturn, although the Hong Kong IPOs at the end of the quarter took away some of the assets accumulated over the quarter, and we expect steady asset balance growth in coming quarters. As of June 30, over 74,000 clients helped wealth management position and total client assets in Wealth Management were HKD 13.8 billion, up 59% year-over-year and 5% quarter-over-quarter. Money Plus established new partnerships with 7 reputable asset managers in the quarter, including Goldman Sachs, UBS and Principal.

儘管季末香港IPO帶走了本季累積的部分資產，但我們的財富管理業務Money Plus相對不受月低迷的影響，我們預計未來幾季資產餘額將穩定成長。截至6月30日，超過74,000名客戶協助理財，客戶理財總資產達138億港元，年增59%，季增5%。Money Plus 本季與 7 家知名資產管理公司建立了新的合作夥伴關係，其中包括高盛、瑞銀和信安。

We also became the exclusive distributor for China AMC's Select Greater China Technology Fund, the only China technology-focused mutual fund in Hong Kong. We continue to innovate on product features. We added fund portfolio rebalancing function and upgraded the functionality of money market funds, where clients can now opt to automatically subscribing the deep money market funds based on their idle cash and margin balance position.

我們也成為華夏精選大中華科技基金的獨家經銷商，該基金是香港唯一專注於中國科技的共同基金。我們不斷在產品功能上進行創新。新增基金組合再平衡功能，升級貨幣市場基金功能，客戶可以根據閒置現金和保證金餘額情況選擇自動認購深度貨幣市場基金。

(foreign language)

（外語）

Our enterprise business, Futu I&E, has 186 IPO and IR clients as well as 263 ESOP solutions clients as of quarter end, representing 191% and 153% year-over-year growth, respectively. We continue to enhance the value proposition of our ESOP business by providing an end-to-end one stop solution and various value-added services to the management team and employees of our corporate clients. Our experience in handling complicated ESOP clients in a scale across different geographies helps us continue to win over large-scale corporate clients.

截至季末，我們的企業業務富途進出口擁有 186 家 IPO 和 IR 客戶以及 263 家 ESOP 解決方案客戶，年比分別成長 191% 和 153%。我們透過為企業客戶的管理團隊和員工提供端到端的一站式解決方案和各種增值服務，不斷增強員工持股計畫業務的價值主張。我們在不同地區處理複雜的員工持股計畫客戶的經驗幫助我們持續贏得大型企業客戶。

(foreign language)

（外語）

Despite low paying client attrition, we're encouraged to see robust user engagement data as average DAU remained above 1 million and daily average user time spend hovered around 30 minutes on each trading day in June. In an effort to drive user engagement, we continue to enrich content in our social community by attracting different stakeholders and improve content recommendation. As of quarter end, over 600 companies have set up enterprise accounts in our social community to interact with retail investors, providing our users invaluable data to facilitate the investment decision making.

儘管付費客戶流失率較低，但我們仍欣喜地看到強勁的用戶參與度數據，因為6 月份每個交易日的平均DAU 仍保持在100 萬以上，且每日平均用戶花費時間徘徊在30 分鐘左右。為了提高用戶參與度，我們透過吸引不同的利害關係人並改進內容推薦來繼續豐富社交社群的內容。截至季末，已有超過600家企業在我們的社群社群建立了企業帳戶，與散戶投資人互動，為用戶提供寶貴的數據以方便投資決策。

(foreign language)

（外語）

Next, I'd like to invite our CFO to discuss our financial performance.

接下來，我想邀請我們的財務長討論一下我們的財務表現。

Thanks Leaf and Daniel. Please allow me to walk you through our financial performance in the second quarter. All numbers are in Hong Kong dollars unless otherwise noted. Total revenue was HKD 1.78 billion, an increase of 129% from the second quarter of 2020 and a decrease of 28% sequentially. Brokerage commission and handling charge income was HKD 798 million, up 95% year-over-year and down 40% Q-on-Q. The Q-on-Q decline was mainly due to a sharp drop in trading turnover amidst dampened market sentiment from about 6x in the first quarter to 3x in the second quarter, to be specific. This was partially offset by higher client assets and a slightly sequential uptick in blended commission rate to 6.1 basis points.

謝謝葉和丹尼爾。請容許我向您介紹我們第二季的財務表現。除非另有說明，所有數字均以港幣計算。總營收為17.8億港​​元，較2020年第二季成長129%，較上一季下降28%。經紀佣金及手續費收入為7.98億港元，年增95%，季減40%。具體而言，季減主要是由於市場情緒低迷，交易額大幅下降，從第一季的約6倍降至第二季的3倍。這被客戶資產增加和混合佣金率連續小幅上升至 6.1 個基點所部分抵銷。

Interest income was HKD 610 million, an increase of 194% year-over-year and a decrease of 7% Q-on-Q. The year-over-year increase in interest income was mainly driven by higher margin financing balance, higher securities borrowing and a lending service income as well as higher IPO financing income. The mild quarterly decline can be mainly attributed to a reduction in securities borrowing income as the market value of U.S. stock borrowing and borrowing rate on store sequentially.

利息收入6.1億港元，年增194%，季減7%。利息收入年增主要是由於保證金融資餘額增加、證券借貸服務收入增加以及IPO融資收入增加所致。季度溫和下滑主要是因為美國股票借貸市值和借貸利率較上月下降，導致證券借貸收入減少。

Other income was HKD 169 million, up 141% year-over-year and down 24% Q-on-Q. The year-over-year growth and the Q-on-Q decline can both be attributed to changes in our IPO subscription service charge income and currency exchange service income as market conditions fluctuated.

其他收入為1.69億港元，年增141%，季減24%。年比成長和季減均歸因於我們的IPO認購服務費收入和貨幣兌換服務收入隨著市場狀況波動而變化。

In terms of cost, our total costs was HKD 279 million, an increase of 81% from the same quarter last year and a decrease of 37% from last quarter. Brokerage commission and handling charge expenses was HKD 145 million, an increase of 89% year-over-year. This increase was roughly in line with our changes of our brokerage commission and handling charge income.

成本方面，我們的總成本為2.79億港元，較去年同季增加81%，較上季減少37%。經紀佣金及手續費支出為1.45億港元，年增89%。這一增長與我們的經紀佣金和手續費收入的變化大致一致。

Interest income was HKD 80 million, up 98% year-over-year. The growth was primarily due to: number one, high costs associated with our securities borrowing and the lending business; and then number two, higher margin financing interest expenses driven by higher margin financing balance partially offset by lower cost of funding.

利息收入8,000萬港元，較去年成長98%。成長主要是因為：第一，與我們的證券借貸業務相關的高成本；第二，保證金融資餘額增加導致保證金融資利息支出增加，部分被較低的融資成本抵銷。

Processing and servicing costs were HKD 54 million, up 48% year-over-year. The increase was primarily due to the increase in cloud service fees to process higher number of concurrent trades. As a result, total gross profit was HKD 1.3 billion, an increase of 143% from HKD 534 million in the same period in 2020. Gross profit margin increased from 77.6% in the second quarter of 2020 to 82.3% this quarter, thanks to high operating leverage as a result of our larger business scale.

處理及服務成本為5,400萬港元，較去年同期成長48%。這一增長主要是由於處理更多並發交易的雲端服務費用增加。毛利總額為13億港元，較2020年同期的5.34億港元成長143%。毛利率從2020年第二季的77.6%上升至本季的82.3%，這得益於我們業務規模擴大帶來的高營運槓桿。

Total operating expenses was up 145% year-over-year and 32% Q-on-Q to HKD 647 million, over 40% of which was related to our international initiatives in Singapore and the U.S. market.

總營運支出較去年同期成長 145%，較上季成長 32% 至 6.47 億港元，其中超過 40% 與我們在新加坡和美國市場的國際措施有關。

R&D expenses was HKD 173 million, an increase of 48% year-over-year and a 26% Q-on-Q, roughly in line with our R&D headcount increase. We continue to invest in our U.S. clearing capabilities and have dedicated around 40% of our R&D personnel to product development in Singapore and in the U.S. to drive a smoother and customized product experience for local users.

研發費用為1.73億港元，較去年成長48%，較上季成長26%，與研發人員人數成長大致一致。我們持續投資於美國的清算能力，並投入約 40% 的研發人員致力於新加坡和美國的產品開發，為當地用戶帶來更流暢、客製化的產品體驗。

Selling and marketing expenses were HKD 377 million, up 292% year-over-year and 37% Q-on-Q. The increase was primarily due to higher branding and marketing spending especially in the international markets to cultivate brand image and acquire new clients. In the second quarter of 2021, over half our sales -- selling and marketing expenses were devoted to the overseas market.

銷售及行銷費用為3.77億港元，較去年成長292%，較上季成長37%。這一成長主要是由於品牌和行銷支出增加，特別是在國際市場上，以培養品牌形象和獲取新客戶。2021 年第二季度，我們一半以上的銷售和行銷費用都投入了海外市場。

G&A expenses were HKD 97 million, an increase of 91% year-over-year and 24% Q-on-Q due to increase in headcount for general and administrative personnel. Our effective tax rate increased from 9% in the first quarter to 14.5% in the second quarter since our total tax credit arising from accumulated loss in the Mainland business has been fully utilized so far, and our net revenue derived from our U.S. stock trading decline in the second quarter. Going forward, we expect our effective tax rate to be in the range of 12% to 14%. As a result, our net income for the quarter increased by 126% year-over-year and decreased by 54% Q-on-Q to HKD 534 million.

由於一般及行政人員人數增加，一般及行政費用為 9,700 萬港元，年增 91%，季增 24%。由於內地業務累計虧損所產生的稅收抵免已全部用完，加上美股交易下跌帶來的淨收入，有效稅率由第一季的9%上升至第二季的14.5%在第二季。展望未來，我們預計有效稅率將在 12% 至 14% 之間。因此，本季淨利潤年增 126%，季減 54%，至 5.34 億港元。

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) Your first question is from Katherine Liu of Morgan Stanley.

（操作員指示） 您的第一個問題來自摩根士丹利的 Katherine Liu。

(foreign language) I will translate for myself. So I have 2 questions. First is, can the management please give us some guidance in terms of the third quarter-to-date results, including client acquisition pace, AUM per capita, turnover velocity, client acquisition costs and maybe some operating expenses growth rate? And second, in light of the regulatory uncertainties regarding restructured companies and ADRs, does the company have any plans regarding Hong Kong listing?

（外語）我自己翻譯。所以我有兩個問題。首先，管理階層能否就第三季迄今的業績給我們一些指導，包括客戶獲取速度、人均資產管理規模、營業額速度、客戶獲取成本以及一些營運費用成長率？其次，鑑於重整公司和ADR的監管不確定性，公司是否有香港上市的計畫？

Thank you, Katherine. This is Arthur. I will take these questions. First of all, just quarter-to-date, I just want to share some color. Definitely, I think the market fluctuations quarter-to-date have some negative impact on our average client assets. So far, I think roughly our average client assets will be down around in the range of 10% to 20%, mainly attributed to the market's -- market loss. But we are very confident because even quarter-to-date, almost every day, we still see meaningful net asset inflows in terms of the wealth accumulation into 2 platforms. Therefore, I do think once the market is back to normal, these market loss or gain will become to the average number.

謝謝你，凱瑟琳。這是亞瑟。我將回答這些問題。首先，到目前為止，我只是想分享一些顏色。當然，我認為本季迄今的市場波動對我們的平均客戶資產產生了一些負面影響。到目前為止，我認為我們的平均客戶資產大致會下降 10% 到 20% 左右，主要歸因於市場的——市場損失。但我們非常有信心，因為即使是季度至今，幾乎每天，我們仍然看到有意義的淨資產流入（就財富累積而言）到兩個平台。因此，我確實認為一旦市場恢復正常，這些市場損失或收益將變成平均數字。

And in terms of the client trading velocity, we do expect trading velocity has some rebound in July and August, given the market, especially high tech stocks have meaningful setbacks, we do see some cushions from the retail investors. And unlike the situation in second quarter, many investors just on the sideline, we do see some participations in the third quarter. So if based on the current run rate, I would expect in terms of top line, we may see some sequential Q-on-Q increase in the third quarter compared with the second quarter.

就客戶交易速度而言，我們確實預期交易速度在 7 月和 8 月會出現一些反彈，考慮到市場，尤其是高科技股票出現明顯的挫折，我們確實看到散戶投資者的一些緩衝。與第二季的情況不同，許多投資者只是在觀望，我們在第三季確實看到了一些參與。因此，如果根據目前的運行率，我預計就營收而言，我們可能會看到第三季與第二季相比出現環比增長。

In terms of the client acquisition costs, I think on the absolute amount levels, this marketing campaign spending will be roughly in line with what we did in the second quarter, but definitely supply acquisition speed will slow down due to the market conditions. So this will all affect the denominator numbers, and we will left out -- our actual number have certain increase in the first quarter compared with the second quarter.

就獲客成本而言，我認為從絕對金額水準來看，這次行銷活動支出將與我們第二季的表現大致一致，但肯定會因市場狀況而減慢供應獲取速度。所以這都會影響分母的數字，我們就省略掉——我們第一季的實際數字比第二季有一定的成長。

For your second question, I think, number one, our VIE structure is slightly different for many -- compared with many Chinese ADR companies, because most of us our revenue is now derived from the offshore, essentially we do not generate any revenues from our VIE structures. So even there will be some new regulations on the VIE structure, I do not expect that it will have some meaningful impact operational wise or financial wise to our business.

對於你的第二個問題，我認為，第一，我們的VIE 結構對許多人來說略有不同——與許多中國ADR 公司相比，因為我們大多數人的收入現在都來自離岸，本質上我們不會從我們的業務中產生任何收入。VIE 結構。因此，即使會有一些關於 VIE 結構的新規定，我也不認為它會對我們的業務產生營運或財務方面的重大影響。

And definitely, we have noted some regional trends in the capital markets, and we are actively conducting quality research and evaluation in this regard. We will make a very comprehensive assessment to ensure that decisions should maximize our shareholders as the long-term interest is made. Thank you.

當然，我們也注意到了資本市場的一些區域性趨勢，我們正在積極進行這方面的高品質研究和評估。我們將進行非常全面的評估，以確保決策能夠在考慮長期利益的同時最大化我們的股東。謝謝。

Your next question comes from Ethan Wang from CLSA.

你的下一個問題來自里昂證券的 Ethan Wang。

(foreign language) I have 2 questions surrounding the Chinese ADR delisting risk. The first one, I was wondering whether management can share some color on current percentage of Chinese ADRs as a percentage of the total trading volume of the U.S. stocks on Futu? And the second one is if the risk of delisting for the Chinese ADRs really happens, then these companies may very likely to convert the Hong Kong listings into primary ones. That means they will be included in a connect scheme, which means that China send back to country those stocks through online China brokers. Does that mean a very big risk for your firm? So how does management look at this?

（外文）我有兩個關於中國ADR退市風險的問題。第一個問題，我想知道管理階層是否可以分享一下目前中國ADR佔富途美股總交易量的百分比？第二個是，如果中國ADR退市的風險真的發生，那麼這些公司很有可能將香港上市轉為第一上市。這意味著它們將被納入連接計劃，這意味著中國透過線上中國經紀商將這些股票送回國內。這對你們公司來說是否意味著很大的風險？那麼管理階層如何看待這個問題呢？

Okay. I will take the first question and will leave my colleagues Robin and Leaf for the second question. In terms of our current U.S. stock trading, essentially ADR just accounts for a very small part. If we do some back testing, around 15% of our U.S. stock tradings belong to these Chinese ADRs. Robin or Leaf?

好的。我將回答第一個問題，並讓我的同事羅賓和利夫回答第二個問題。就我們現在的美股交易來說，本質上ADR只佔很小的一部分。如果我們進行一些回溯測試，我們大約 15% 的美國股票交易屬於這些中國 ADR。羅賓還是葉？

(foreign language)

（外語）

Well, we think the return of China ADRs back to Hong Kong could be a structural trend, although we don't really take a stance on how the regulations will evolve and the Hong Kong IPOs generally have very high monetization potentials. And we generate a pretty sizable percentage of our revenue from the IPO subscription and margin financing interest. And also in Hong Kong, there's more friendly trading hours for our clients.

嗯，我們認為中國 ADR 回歸香港可能是一種結構性趨勢，儘管我們對於監管將如何演變並沒有真正表明立場，而且香港 IPO 通常具有非常高的貨幣化潛力。我們的收入中有相當大一部分來自首次公開募股認購和保證金融資利息。在香港，我們的客戶也有更友善的交易時間。

And also just to add on to your other point about converting to primary listing, well, we don't think there is -- the onshore brokers will necessarily pose a great threat to our business. Because a lot of the popular the Chinese companies worked out in Hong Kong right now are already access accessible to our Mainland Chinese investors through Stock Connect, for example, Tencent. But some of these large tech companies still account for a majority of our asset balance in Hong Kong stocks.

另外，我想補充一下關於轉換為主要上市的其他觀點，我們認為不存在——境內經紀商必然會對我們的業務構成巨大威脅。因為現在很多在香港發展的熱門中國公司已經可以透過滬港通讓我們中國大陸的投資者進入，例如騰訊。但其中一些大型科技公司仍占我們港股資產餘額的大部分。

And in comparison to trading through a Stock Connect, trading directly in the Hong Kong market offers more flexible and more favorable trading hours and trading time. So like if Mainland China has a corporate holiday, it does not affect our trading hours in Hong Kong. And also, there's a lot more flexibility of our margin financing and there is a wider selection of stock that you can invest in. So we don't believe that a number of Chinese companies converting from secondary listing to primary listing will change our competitive edge in this market.

而且與透過滬港通交易相比，直接在香港市場進行交易提供了更靈活、更優惠的交易時間和交易時間。所以就像中國大陸有公司假期一樣，不會影響我們在香港的交易時間。此外，我們的保證金融資更加靈活，您可以投資的股票選擇也更加廣泛。因此，我們認為一些中國公司從第二上市轉為第一上市不會改變我們在這個市場的競爭優勢。

(foreign language)

（外語）

And we also have a very differentiated client cohort as compared to some of the onshore brokers. So we don't think our competitive advantage will be diluted should this -- should consensus actually realize it.

與一些境內經紀商相比，我們也擁有非常差異化的客戶群。因此，如果共識真正意識到這一點，我們認為我們的競爭優勢不會被削弱。

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) This is Zoey from Jefferies, and I have 2 questions. My first question is regarding the tax rate. As we have noted that the effective cost rate for Q2 was 14.5%, which is much higher than the previous quarter, I wonder what's the reason for the increase? And how should we estimate this number going forward? And my second question is, we know that Hong Kong exchange plans to adopt a T+2 settlement sample instead of the current T+5 in the first quarter 2022. I wonder how should we think about the impact on our IPO financing business?

（外語）我是 Jefferies 的 Zoey，我有 2 個問題。我的第一個問題是關於稅率。我們注意到，第二季度的有效成本率為14.5%，遠高於上季度，請問增加的原因是什麼？未來我們該如何估計這個數字？我的第二個問題是，我們知道香港交易所計劃在2022年第一季採用T+2結算樣本，而不是目前的T+5。我不知道我們應該如何看待這對我們IPO融資業務的影響？

Thank you, Zoey. I will answer the first question and I will leave the second question to Leaf. Actually, I had mentioned this in our opening remarks. You are right, our effective tax rate increased from 9% in the first quarter to 14.5% in the second quarter. The reason actually comes from 2 thoughts. Number one is our tax credit arising from historical cumulative loss in the China operations has been fully utilized. So this is a similar effect. And secondly is our net revenue derived from our U.S. stock trading belong to these Mainland individuals. Actually, we can make our offshore claims in Hong Kong, but their U.S. stock trading volume in the second quarter declined, therefore, we had some temporary impact in the second quarter arising from the second reason. Going forward, we expect our effect tax rate will be in the range of 12% to 14%.

謝謝你，佐伊。我來回答第一個問題，第二個問題就交給Leaf吧。事實上，我在開場白中已經提到這一點。你是對的，我們的有效稅率從第一季的9%提高到第二季的14.5%。原因其實來自於2個想法。第一，我們因中國業務歷史累積虧損而產生的稅收抵免已被充分利用。所以這是一個類似的效果。其次，我們買賣美股的淨收入是屬於這些內地個人的。其實我們可以在香港進行離岸債權，但是他們的美股交易量第二季下降了，所以第二個原因對我們第二季造成了一些暫時的影響。展望未來，我們預計影響稅率將在 12% 至 14% 之間。

(foreign language)

（外語）

Sure. So the IPO financing income accounted for about 4% of our revenue in the first half of this year, and contribution was less than 6% in 2020. So if we were to assume that the settlement period goes from T+5 to T+2, from a static point of view, this will have only a 2% to 3% negative impact on our top line, which we think is manageable.

當然。所以今年上半年IPO融資收入占我們收入的4%左右，2020年貢獻不到6%。因此，如果我們假設結算週期從T+5變成T+2，從靜態角度來看，這只會對我們的營收產生2%到3%的負面影響，我們認為這是可以控制的。

(foreign language)

（外語）

Well, secondly, a lot of the IPOs subscription period kind of overlapped with each other. So we believe some of the needs for IPO subscription happens to be subdued under the current kind of regulations. And we think this could change after the forum, so especially when the markets are performing really well and there are a lot of IPOs happening at the same time, having a T+2 settlement period can increase the capital efficiency of our clients. And therefore will potentially help increase their engagement in this IPO subscription process.

嗯，其次，許多首次公開發行的認購期都互相重疊。因此，我們認為，在目前的監管規定下，IPO 認購的部分需求恰好受到抑制。我們認為這種情況在論壇結束後可能會改變，所以特別是當市場表現非常良好且同時有大量IPO發生時，T+2結算期可以提高我們客戶的資本效率。因此，這可能有助於增加他們對 IPO 認購流程的參與度。

And also, we understand that the regulations are not only regarding shortening the settlement period, but also may touch on avoiding the retail clients from subscribing to IPOs through multiple brokers. And we believe that the IPO financing income makes up a very significant income for a lot of mid- to small-sized brokers. So this policy could actually contribute to industry consolidation and direct a lot of these retail investors to platforms like Futu that have better user experience and more capital for them to use during the IPOs.

此外，我們了解到，該規定不僅涉及縮短結算週期，還可能涉及避免散戶客戶透過多家經紀商認購IPO。我們認為IPO融資收入對許多中小型券商來說是非常重要的收入。因此，這項政策實際上可能有助於行業整合，並將大量散戶投資者引導至像富途這樣的平台，這些平台擁有更好的用戶體驗和更多的資金供他們在首次公開募股期間使用。

(Operator Instructions) Your next question comes from Hanyang Wang from 86Research.

（操作員指示）您的下一個問題來自86Research的王漢陽。

(foreign language) I will translate my question. Congratulations on a great quarter. I have the following question on the IPO business. So with uncertainties for China ADR IPO, as rather recent slowdown for Hong Kong IPOs impacted our ESOP business and will that also impact our user acquisition in Mainland China also ESOP?

（外語）我會翻譯我的問題。恭喜您度過了一個美好的季度。我對IPO業務有以下疑問。那麼，由於中國 ADR IPO 存在不確定性，最近香港 IPO 的放緩影響了我們的員工持股計劃業務，這是否也會影響我們在中國大陸的用戶獲取以及員工持股計劃？

Thank you. Let me take this question. I think, number one, the slowdown of Chinese companies overseas ADR IPO is just a temporary situation. We understand many Chinese companies are in the sidelines, and that they are waiting for more clarity in terms of the regulations from China and also from the U.S. regulator down the road. Therefore, I think the impact will be very short term.

謝謝。讓我來回答這個問題。我認為，第一，中國企業海外ADR IPO放緩只是暫時情況。我們知道許多中國公司都在觀望，他們正在等待中國和美國監管機構未來進一步明確監管規定。因此，我認為影響將是非常短期的。

And having said that, we also see, as Leaf mentioned before, we see more and more listed companies and also pre-IPO companies will consider Hong Kong as their primary listing stage rather than the U.S. in the past. We do have a very strong edge in Hong Kong market, given Hong Kong is our home base. Therefore, we do think client acquisition through the ESOP, through the IPO will continue.

話雖如此，我們也看到，正如Leaf之前提到的，我們看到越來越多的上市公司和預上市公司將香港作為其主要上市平台，而不是過去的美國。我們在香港市場確實有很強的優勢，因為香港是我們的基地。因此，我們確實認為透過員工持股計畫、IPO 獲取客戶將會繼續。

Just to give you some breakdown in terms of our current client acquisition channels, organic already accounts for over 15%. If we just calculate ESOP channel combined with this group account opening, then we will just account for around 10% of our total new paying clients income every quarter. So I think the impact is still manageable.

就我們目前的客戶獲取管道而言，有機客戶獲取管道已佔 15% 以上。如果我們只將ESOP管道與該集團開戶結合起來計算，那麼我們每季的新付費客戶收入總額僅佔10%左右。所以我認為影響還是可以控制的。

We have another question from the line of Katherine Liu from Morgan Stanley.

我們還有來自摩根士丹利的 Katherine Liu 的另一個問題。

(foreign language) I will translate for myself. Just wondering, I understand that you're in a new market, initial monetization may be to a less important versus client market share. But then just wondering has the management considered increasing the monetization for the Singapore market? Whether it will be some guidance from companies or some hints from companies or it will be a natural result as clients' assets increase on the platform?

（外語）我自己翻譯。只是想知道，我知道您處於一個新市場，與客戶市場份額相比，初始貨幣化可能不太重要。但想知道管理階層是否考慮增加新加坡市場的貨幣化？是企業的一些引導還是企業的一些暗示，還是隨著客戶在平台上的資產增加，自然而然的結果？

Sure, Katherine, let me give you some color in terms of our client profile in Singapore. I think in terms of age and their trading velocity, this population is very similar to what we see in Hong Kong markets. The average age is around 30 years old and they do trade a lot, particularly for the U.S. markets.

當然，凱瑟琳，讓我來為您介紹一下我們在新加坡的客戶概況。我認為就年齡和交易速度而言，這個人群與我們在香港市場看到的非常相似。他們的平均年齡在 30 歲左右，他們的交易量很大，尤其是在美國市場。

Now the average client assets in Singapore is around SGD 6,000. Of course, it is relatively low compared with the average assets what we witness in China and in Hong Kong. But encouragingly, I think if we look at total basis, the new clients we acquired in March and April, we have total assets already almost doubled in the past 4 to 5 months.

現在新加坡的平均客戶資產約為6,000新元。當然，與我們在中國和香港看到的平均資產相比，它是相對較低的。但令人鼓舞的是，我認為如果我們看一下總基礎，我們在 3 月和 4 月獲得的新客戶，我們的總資產在過去 4 到 5 個月裡幾乎翻了一番。

So back to your question, I think, number one, definitely we think the nature of our business is just more like a low lying snowball. We are very happy to go along with our clients in their investment journeys. We believe as time goes by, their average assets will become bigger and bigger.

回到你的問題，我認為，第一，我們肯定認為我們業務的本質更像是一個低矮的雪球。我們非常樂意與客戶一起踏上投資之旅。我們相信隨著時間的推移，他們的平均資產會越來越大。

Number two, definitely, we will have more service offering, more product offerings in the pipeline. Hopefully, we will launch more business in the coming 2 quarters. For instance, we will provide Singapore clients to participate in the Hong Kong IPO retail tranche. And not to mention, we will also expand our wealth management product offering, currently just offering to the Mainland and Hong Kong people, to the Singapore local residents as well. Therefore, I think as we provide more and more products and service, we will find more monetization areas to enhance our ARPU.

第二，毫無疑問，我們將提供更多的服務、更多的產品。希望我們能在未來兩季推出更多業務。例如，我們將為新加坡客戶提供參與香港IPO零售部分的機會。更不用說，我們還將擴大我們的理財產品範圍，目前只向內地和香港人提供，也向新加坡本地居民提供。因此，我認為隨著我們提供越來越多的產品和服務，我們會找到更多貨幣化的領域來提高我們的 ARPU。

As there are no further questions at this time, I would now like to hand the conference back to Daniel for closing remarks.

由於目前沒有其他問題，我現在想將會議交還給 Daniel 進行閉幕致詞。

That concludes our call today. On behalf of the Futu management team, I would like to thank you for joining 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。我謹代表富途管理團隊感謝您今天加入我們。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，再見。

Thank you. That does conclude our conference for today. Thank you for participating. You may now all disconnect.

謝謝。我們今天的會議到此結束。感謝您的參與。你們現在可以斷開連結了。