Financial Data and Key Metrics Changes - Total funded accounts reached approximately 2,900,000, representing a 41% increase year over year and an 8% rise quarter over quarter [5] - Total client assets hit a record HKD 974 billion, up 68% year over year and 17% quarter over quarter [8] - Total revenue was HKD 5.3 billion, up 70% from HKD 3.1 billion in the previous year [13] - Net income increased by 113% year over year and 20% quarter over quarter to HKD 2.6 billion, with a net income margin expanding to 48.4% [21] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.6 billion, an increase of 87% year over year and 12% quarter over quarter [13] - Interest income was HKD 2.3 billion, up 44% year over year and 11% quarter over quarter [14] - Wealth management client assets were HKD 163.2 billion at quarter end, up 104% year over year and 17% quarter over quarter [11] Market Data and Key Metrics Changes - Hong Kong continued to lead in new funded accounts, with elevated market volatility driving retail participation [6] - The US business showed robust growth, with a partnership with the New York Mets enhancing brand reach [6] - In Japan, the company hosted an investment event that attracted over 12,000 investors, strengthening brand recognition [7] Company Strategy and Development Direction - The company aims to become an influential global financial services platform, with over 50% of funded accounts from clients outside of Hong Kong [5] - Plans to enhance brand acquisition through physical store rollouts and new product offerings in wealth management and crypto [25] - The company is focusing on integrating AI capabilities into its services to improve client engagement and investment efficiency [31] Management's Comments on Operating Environment and Future Outlook - Management noted strong asset inflow due to favorable market conditions and enriched product offerings [24] - The company expects steady growth in client acquisitions and trading volume in the third quarter, with positive market sentiment [46] - There is optimism regarding the growth prospects in the US market, supported by product innovations and strategic partnerships [50] Other Important Information - The company launched cryptocurrency trading in most US states and plans to introduce new functionalities for crypto trading [25] - The average client assets in Singapore rose 1926% quarter over quarter, indicating strong growth in that market [8] Q&A Session Summary Question: What is the reasoning behind the strong net asset inflow and how will the company maintain momentum? - Management attributed strong asset inflow to favorable market performance and enriched product offerings, with plans for more physical stores and new products in the second half [24][25] Question: Can you provide details on the crypto trading performance and future plans? - Management reported strong momentum in crypto trading, with asset value increasing significantly and plans for new product offerings in the crypto space [25][26] Question: What are the strategic views on the crypto business and the competitive landscape in Japan? - Management highlighted the importance of traditional finance integration with crypto, advanced technologies, and the unique value proposition for self-directed investors in Japan [30][36] Question: Can you provide insights on the third quarter expectations for client acquisitions and trading volume? - Management expects steady growth in client acquisitions and trading volume, with positive market sentiment contributing to these trends [46] Question: What is the impact of new regulations on client acquisition? - Management indicated that new regulations have not significantly impacted client acquisition, maintaining confidence in achieving annual targets [54]

Core Viewpoint - Futu Holdings reported significant year-on-year growth in revenue and profit for Q2 2025, driven by increased user accounts and trading volumes, particularly in the U.S. stock market [3][4][6]. User Growth and Asset Scale - The number of funded accounts increased by 40.9% year-on-year to 2.877 million, with over half coming from markets outside Hong Kong [6]. - Total client assets grew by 68.1% year-on-year to HKD 973.9 billion, marking a historical high [7]. Trading Activity - Total trading volume surged by 121.2% year-on-year to HKD 35.9 trillion, with U.S. stock trading contributing the most [2][8]. - U.S. stock trading volume reached HKD 27.0 trillion, while Hong Kong stock trading volume was HKD 8.335 trillion [8]. Financial Performance - Q2 2025 revenue reached HKD 53.1 billion (approximately USD 6.77 billion), a 69.7% increase year-on-year, while net profit soared by 112.7% to HKD 25.7 billion [4][6]. - The operating profit margin improved significantly from 47.3% in the same period last year to 63.0% [4]. Revenue Drivers - Commission and fee income rose by 87.4% year-on-year to HKD 2.58 billion, driven by the substantial increase in trading volume [6]. - Interest income increased by 43.8% year-on-year to HKD 2.29 billion, benefiting from growth in securities lending, bank deposits, and margin financing [6]. Wealth Management Innovations - Total assets under wealth management reached HKD 163.2 billion, a 104.4% year-on-year increase [8]. - The company has introduced various bond products and became the first online broker to offer structured products to retail investors [8].

Market Movements - US stock index futures are all down ahead of the market opening, with Dow futures down 0.11%, S&P 500 futures down 0.08%, and Nasdaq futures down 0.16% [1] - European indices show mixed results, with Germany's DAX down 0.41%, UK's FTSE 100 up 0.26%, France's CAC 40 up 0.12%, and the Euro Stoxx 50 unchanged [1] Oil Prices - WTI crude oil is up 1.25% at $62.54 per barrel, while Brent crude oil is up 1.11% at $66.52 per barrel [2] Market News - Morgan Stanley reports that major tech stocks like Google, Amazon, Apple, Meta, Microsoft, and Nvidia are experiencing the largest underweight by actively managed funds in 16 years, suggesting potential for future gains as institutional funds may increase their holdings [3] - Citadel Securities' Scott Rubner predicts that retail investors' buying activity may slow down in September after a strong market performance in June and July, which typically marks a low point for retail participation [4] - Deutsche Bank questions US Treasury Secretary's call for a significant rate cut, asserting that current interest rates are reasonable based on traditional monetary policy models [4] Company News - Google faces potential forced divestiture of its Chrome browser as part of an antitrust ruling, marking a significant regulatory challenge [6] - Meta is restructuring its AI team into four independent groups to better leverage its recent talent acquisitions, aiming to accelerate its pursuit of "superintelligence" [7] - Target's Q2 net sales fell 0.9% to $25.21 billion, but exceeded market expectations, with adjusted EPS of $2.05, slightly above forecasts [8] - Lowe's Q2 revenue reached $23.96 billion, slightly above expectations, with adjusted EPS of $4.33, also beating forecasts [9] - Estée Lauder's Q4 sales fell 12% to $3.41 billion, with a net loss of $546 million, impacted by restructuring costs [10] - Baidu reported Q2 net profit of 7.322 billion yuan, with total revenue of 32.713 billion yuan, a 4% year-over-year decline [11] - iQIYI's Q2 total revenue was 6.63 billion yuan, with membership service revenue of 4.09 billion yuan [11] - Kingsoft Cloud's Q2 revenue grew 24.2% year-over-year to 2.35 billion yuan, with AI revenue increasing over 120% [11] - Futu Holdings' Q2 revenue rose 69.7% to 5.311 billion HKD, with net profit increasing by 105.2% [12] - SQM's Q2 core earnings dropped 28% due to falling lithium prices, but the company expects prices to recover in Q3 [12]

Group 1 - The core viewpoint of the articles highlights Futu Holdings' strong financial performance in Q2 2025, with significant revenue and profit growth driven by increased trading activity and user engagement [1][2] Group 2 - Futu Holdings reported total revenue of HKD 53.11 billion (approximately USD 6.77 billion) for Q2, representing a year-on-year growth of 69.7% [1] - The company's non-GAAP net profit reached HKD 26.60 billion (approximately USD 3.39 billion), marking a year-on-year increase of 105.2% [1] - Revenue from trading commissions and fees was HKD 25.79 billion (approximately USD 3.29 billion), up 87.4% year-on-year [1] - Interest income rose to HKD 22.88 billion (approximately USD 2.92 billion), reflecting a 43.8% year-on-year increase [1] - Other income, including wealth management and corporate services, surged to HKD 4.44 billion (approximately USD 56.6 million), a year-on-year growth of 175.8% [1] Group 3 - As of the end of Q2, Futu's registered user base for its platforms reached 27.12 million, with account numbers totaling 5.24 million, representing year-on-year growth of 17% and 30% respectively [1] - The number of asset-holding clients increased by 41% year-on-year to 2.88 million, with total client assets reaching HKD 973.9 billion (approximately USD 124.1 billion), a year-on-year increase of 68% [1] Group 4 - The Hong Kong market showed strong momentum, with net client inflows driving a double-digit quarterly increase in average client assets [2] - All overseas markets experienced double-digit growth in client assets, with Singapore achieving a milestone where one in every two residents uses the moomoo platform [2] - Futu's trading volume surged by 121% year-on-year to HKD 3.6 trillion, setting a new historical high [2]

Core Insights - Futu Holdings reported a significant year-on-year revenue growth of 69.7% to HK$53.1 billion, with net profit soaring by 112.7% to HK$25.7 billion in Q2 2025 [1][3][5] Revenue and Profit Performance - The strong revenue performance was driven by a 87.4% increase in commission and fee income to HK$25.8 billion, attributed to a substantial rise in trading volume [3] - Interest income also saw a notable increase of 43.8% to HK$22.9 billion, benefiting from growth in securities lending, bank deposits, and margin financing [3][5] - The operating profit margin improved significantly from 47.3% in the same period last year to 63.0% [5] User Growth and Asset Scale - The number of funded accounts grew by 40.9% year-on-year to 2.877 million, with over 204,000 new accounts added in the quarter [3][6] - Total client assets surged by 68.1% to a record high of HK$973.9 billion, with net asset inflows in the first half of 2025 nearly doubling compared to the same period last year [3][6] Trading Activity - Total trading volume experienced a dramatic increase of 121.2% year-on-year to HK$35.9 trillion, with US stock trading contributing significantly [4][6] - US stock trading volume reached HK$27.0 trillion, while Hong Kong stock trading volume was HK$8.335 trillion [4] - The trading volume growth was catalyzed by market volatility and favorable policies in the cryptocurrency sector [4] Wealth Management Innovations - Futu's wealth management client assets reached HK$163.2 billion, reflecting a 104.4% year-on-year growth [4] - The company has introduced various innovative products, including Hong Kong and RMB-denominated bonds and structured products for retail investors [4]

Second Quarter 2025 Operational Highlights Second Quarter 2025 Financial Highlights Mr. Leaf Hua Li, Futu's Chairman and Chief Executive Officer, said, "We concluded the second quarter with approximately 2.9million funded accounts, up 40.9% year-over-year and 7.6% quarter-over-quarter. We reached a key milestone in our international expansion – as of quarter end, over half of our total funded accounts are from clients outside of Futu Securities Hong Kong." "During the quarter, we added over 204 thousand new ...

Core Insights - The article discusses the competitive landscape of stock trading apps in China, highlighting the increasing demand for digital financial tools as the number of monthly active users is projected to exceed 166 million by 2025 [1] - It evaluates five major apps: Sina Finance, Tonghuashun, Eastmoney, Xueqiu, and Futu NiuNiu across five dimensions: data coverage, information timeliness, intelligent tools, community ecosystem, and trading experience [1] Data Dimension - Sina Finance leads with coverage of over 40 global markets and a refresh speed of 0.03 seconds, maintaining real-time updates during market volatility [2] - Tonghuashun offers free Level-2 market data but has a 3-5 second delay for U.S. pre-market trading [2] - Eastmoney provides comprehensive data across domestic and international markets but may experience a 0.5-second delay in real-time charts [2] - Xueqiu has limited real-time data for U.S. stocks and slower updates for Hong Kong stocks [2] - Futu NiuNiu excels in U.S. and Hong Kong market data accuracy and supports pre- and post-market trading [2] Information Dimension - Sina Finance provides timely analysis of major events, with a 5-10 second lead in delivering insights on significant financial decisions [3] - Tonghuashun's information is machine-generated, lacking depth in analysis despite high volume [3] - Eastmoney focuses on localized content but relies heavily on rehashed international news [3] - Xueqiu's user-generated content is abundant but often lacks timely updates [3] - Futu NiuNiu focuses on trading-related news but lacks a comprehensive analysis framework [3] Intelligent Tools - Sina Finance's AI assistant offers rapid interpretation of announcements and highlights key risks and opportunities [4] - Tonghuashun's AI tool allows natural language queries but is limited to technical analysis [4] - Eastmoney's proprietary model covers 90% of research scenarios but lacks analytical output [4] - Xueqiu integrates social features into its backtesting tools but has flaws in risk assessment models [4] - Futu NiuNiu's tools are primarily transaction-focused, lacking advanced analytical capabilities [4] Community Ecosystem - Sina Finance integrates social media insights, creating a fast information-to-action loop for users [5] - Eastmoney's community platform has high engagement but suffers from misinformation due to fake accounts [5] - Xueqiu's community is strong in long-term investment discussions but may mislead users with selective success stories [5] - Tonghuashun uses algorithms to recommend quality content but faces issues with paid promotions affecting community integrity [5] - Futu NiuNiu's community features are less developed, relying on external sources for decision-making [5] Trading Experience - Sina Finance's trading system supports 120,000 transactions per second, maintaining performance during market fluctuations [6] - Tonghuashun's system is efficient for high-frequency trading but has minor calculation errors in options [6] - Eastmoney's user-friendly features enhance emergency trading efficiency but have a delay in margin call alerts [6] - Xueqiu's simulation trading is smooth but has stability issues with API connections [7] - Futu NiuNiu offers a seamless trading experience with diverse functionalities, ideal for efficiency-focused investors [7] Conclusion - The evaluation indicates that Sina Finance stands out as the most effective app for navigating the stock market, combining global monitoring, intelligent tools, and social validation [8]

Core Insights - Futu Holdings Ltd. reported Q2 2025 earnings with revenues of US$676.6 million, a 69.7% increase year-over-year, and non-GAAP adjusted net income of US$338.8 million, up 105.2% YoY [1][2] User Growth and Client Assets - As of June 30, 2025, the company had 27.12 million registered users, 5.24 million brokerage accounts, and 2.88 million funded accounts [2] - Total client assets reached US$124 billion, reflecting a 17% quarter-over-quarter growth and a 68% year-over-year increase [2] Trading Volume - Total trading volume across platforms grew by 12% QoQ and 121% YoY to US$457 billion, with US equities reaching an all-time high of US$343 billion [3] Cryptocurrency and AI Innovations - Cryptocurrency assets increased by 43% QoQ, with the company launching Moomoo Crypto for US investors and expanding cryptocurrency trading services globally [4][5] - The introduction of Moomoo AI, an AI chatbot, aims to enhance investment decision-making for users [6] Product Development and Market Expansion - The company expanded its product offerings, including US stock options trading in Japan and IPO financing in Malaysia, while enhancing trading features across platforms [7] - Moomoo's app maintained the top position in Q2 downloads among local stock trading apps in Australia, Malaysia, Singapore, and Hong Kong [7] Localization and Financial Literacy Initiatives - Moomoo introduced educational sections within its in-app community, reporting growth in daily active users and user engagement [8] - The company partnered with organizations to promote financial literacy, hosting events and providing awards to high schools for excellence in finance [9][10] Recognition and Awards - Moomoo received multiple awards in various markets, including "Top Broker - Highest Number of New Accounts" in Malaysia and "Fintech - Private Wealth Management" in Singapore, highlighting its commitment to customer value [11]

[Futu Q2 2025 Earnings Release](index=1&type=section&id=Futu%20Q2%202025%20Earnings%20Release) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported strong Q2 2025 growth in revenue, net income, funded accounts, and client assets Q2 2025 Key Financial Metrics (YoY) | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Total Revenues | HK$5,310.9 million | 69.7% | | Total Gross Profit | HK$4,639.9 million | 81.6% | | Net Income | HK$2,572.6 million | 112.7% | | Non-GAAP Adjusted Net Income | HK$2,659.8 million | 105.2% | Q2 2025 Key Operational Metrics (YoY) | Metric | As of June 30, 2025 | YoY Growth | | :--- | :--- | :--- | | Funded Accounts | 2,877,126 | 40.9% | | Total Client Assets | HK$973.9 billion | 68.1% | | Total Trading Volume (Q2) | HK$3.59 trillion | 121.2% | | Total Users | 27.1 million | 16.6% | - A key milestone was reached as **over half of total funded accounts now originate from outside Hong Kong**[3](index=3&type=chunk) [Operational Performance Details](index=1&type=section&id=Operational%20Performance%20Details) The company saw robust client acquisition, international expansion, and growth in trading and wealth management - Client acquisition and international expansion highlights included adding **over 204,000 new funded accounts**, a **31.6% YoY increase**, with Hong Kong being the largest contributor and new marketing initiatives launched in the U.S. and Japan[3](index=3&type=chunk) Q2 2025 Trading Volume Breakdown | Category | Trading Volume | QoQ Change | | :--- | :--- | :--- | | Total Trading Volume | HK$3.59 trillion | +11.6% | | U.S. Stock Trading Volume | HK$2.70 trillion | +19.7% | | Hong Kong Stock Trading Volume | HK$833.5 billion | -9.0% | - Wealth management and corporate services demonstrated strong growth, with wealth management client assets reaching **HK$163.2 billion** (**+104.4% YoY**) and the company serving **517 IPO and IR clients**[3](index=3&type=chunk) [Detailed Financial Results](index=1&type=section&id=Detailed%20Financial%20Results) Strong revenue growth and operating leverage drove significant increases in gross profit and net income [Revenues](index=1&type=section&id=Revenues) Total revenues grew 69.7% YoY to HK$5.3 billion, driven by brokerage commission and interest income Q2 2025 Revenue Breakdown (in HK$ million) | Revenue Source | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Brokerage commission and handling charge | 2,578.6 | 1,376.3 | 87.4% | | Interest income | 2,288.2 | 1,591.7 | 43.8% | | Other income | 444.1 | 161.0 | 175.8% | | **Total Revenues** | **5,310.9** | **3,129.0** | **69.7%** | [Costs and Gross Profit](index=2&type=section&id=Costs%20and%20Gross%20Profit) Gross profit surged 81.6% YoY to HK$4.6 billion, with gross margin expanding to 87.4% Q2 2025 Costs and Gross Profit (in HK$ million) | Item | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Total Costs | 670.9 | 574.3 | 16.8% | | **Total Gross Profit** | **4,639.9** | **2,554.7** | **81.6%** | - **Gross margin expanded to 87.4%** in Q2 2025, compared to 81.6% in the same period last year[10](index=10&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses increased 20.6% YoY, reflecting investments in R&D, marketing, and personnel Q2 2025 Operating Expenses Breakdown (in HK$ million) | Expense Category | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Research and development | 441.9 | 373.9 | 18.2% | | Selling and marketing | 429.1 | 338.3 | 26.8% | | General and administrative | 424.9 | 362.1 | 17.3% | | **Total Operating Expenses** | **1,296.0** | **1,074.4** | **20.6%** | [Profitability](index=2&type=section&id=Profitability) Significant operating leverage led to a 125.9% increase in income from operations and a higher net income margin Q2 2025 Profitability Metrics (in HK$ million) | Metric | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Income from Operations | 3,344.0 | 1,480.3 | 125.9% | | Net Income | 2,572.6 | 1,209.3 | 112.7% | | Non-GAAP Adjusted Net Income | 2,659.8 | 1,296.2 | 105.2% | - The **operating margin increased to 63.0%** from 47.3% in Q2 2024, while the **net income margin increased to 48.4%** from 38.6%[13](index=13&type=chunk)[14](index=14&type=chunk) Net Income per ADS | Per ADS Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Basic Net Income | HK$18.48 | HK$8.79 | | Diluted Net Income | HK$18.24 | HK$8.66 | [Financial Statements](index=3&type=section&id=Financial%20Statements) The unaudited statements detail the company's financial position, performance, and non-GAAP reconciliations [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to HK$198.4 billion, with a corresponding increase in client-related assets and liabilities Selected Balance Sheet Items (in HK$ thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | 198,399,373 | 158,756,933 | | Cash held on behalf of clients | 105,308,081 | 68,639,816 | | Total Liabilities | 165,119,851 | 130,752,472 | | Payables to clients | 110,940,538 | 72,379,135 | | Total Shareholders' Equity | 33,291,106 | 28,011,241 | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Net income for the second quarter more than doubled year-over-year to HK$2.6 billion Income Statement Summary - Three Months Ended June 30 (in HK$ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | 5,310,890 | 3,128,986 | | Total Gross Profit | 4,639,948 | 2,554,687 | | Income from Operations | 3,343,983 | 1,480,307 | | Net Income | 2,572,560 | 1,209,298 | [Unaudited Reconciliations of Non-GAAP and GAAP Results](index=6&type=section&id=Unaudited%20Reconciliations%20of%20Non-GAAP%20and%20GAAP%20Results) Non-GAAP adjusted net income reached HK$2.7 billion after excluding share-based compensation expenses Non-GAAP Reconciliation - Three Months Ended June 30 (in HK$ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net income (GAAP) | 2,572,560 | 1,209,298 | | Add: Share-based compensation expenses | 87,254 | 86,855 | | **Adjusted net income (Non-GAAP)** | **2,659,814** | **1,296,153** | [Other Information](index=2&type=section&id=Other%20Information) This section contains details on the earnings call, non-GAAP measures, and forward-looking statements - The company will hold an earnings conference call on August 20, 2025, at 7:30 AM U.S. Eastern Time[17](index=17&type=chunk) - Non-GAAP adjusted net income is defined as net income excluding non-cash share-based compensation expenses[22](index=22&type=chunk)

Group 1 - The core viewpoint of the article highlights Futu Holdings' strong financial performance for Q2 2025, with significant year-over-year growth in revenue and adjusted net profit [1] - The company's revenue for Q2 2025 reached HKD 5.311 billion, representing a 69.7% increase compared to the previous year [1] - Adjusted net profit for the same period was HKD 2.66 billion, showing a remarkable growth of 105.2% year-over-year [1] Group 2 - By business segment, trading commissions and fees generated HKD 2.579 billion, which is an 87.4% increase year-over-year [1] - Interest income amounted to HKD 2.288 billion, reflecting a 43.8% increase compared to the previous year [1] - Other income, including wealth management and corporate services, reached HKD 444 million, marking a substantial growth of 175.8% year-over-year [1]