2024-11-19 Futu Holdings Ltd (FUTU) Q3 2024 Earnings Call Transcript
Futu Holdings Limited (NASDAQ:FUTU) Q3 2024 Earnings Conference Call November 19, 2024 7:30 AM ET
富途控股有限公司 (NASDAQ:FUTU) 2024 年第三季度收益电话会议 2024 年 11 月 19 日 上午 7:30 ET
Company Participants 公司参与者
Daniel Yuan - Head, Strategy & Investor Relations
Daniel Yuan - 负责人，战略与投资者关系
Leaf Li - Chairman & Chief Executive Officer
李叶 - 董事长兼首席执行官
Arthur Chen - Chief Financial Officer
陈飞宇 - 首席财务官
Conference Call Participants
电话会议参与者
Cindy Wang - China Renaissance
Cindy Wang - 华兴资本
Chiyao Huang - MS 黄池耀 - 硕士
You Fan - CICC
Charles Zhou - UBS
Emma Xu - Bank of America Securities
Emma Xu - 美国银行证券
Operator 操作员
Hello, ladies and gentlemen. Welcome to Futu Holdings Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a Q&A session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time.
大家好，女士们，先生们。欢迎参加富途控股 2024 年第三季度财报电话会议。目前，所有参与者都处于只听模式。在管理层准备好的发言之后，将会有一个问答环节。今天的电话会议正在录音。如果您有任何异议，您可以在此时断开连接。
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.
现在，我想把会议交给今天电话会议的主持人，富途首席执行官的幕僚长、战略和投资者关系负责人袁丹尼尔先生。请开始，先生。
Daniel Yuan
Thanks, operator, and thank you for joining us today to discuss our third quarter 2024 earnings results.
谢谢，操作员，感谢您今天加入我们讨论 2024 年第三季度的收益结果。
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.
今天与我一起参加电话会议的有董事长兼首席执行官李叶先生、首席财务官陈 Arthur 先生和高级副总裁徐 Robin 先生。
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 annual report.
请注意，今天的电话会议可能包含前瞻性声明，这些声明代表公司对未来事件的信念，其本质上是不确定的，并且超出了公司的控制范围。前瞻性声明涉及固有的风险和不确定性。我们提醒您，许多重要因素可能导致实际结果与任何前瞻性声明中包含的内容有重大差异。有关潜在风险和不确定性的更多信息，请参阅公司向 SEC 提交的文件，包括其年度报告。
With that, I will now turn the call over to Leaf. Leaf will make his comments in Chinese, and I will translate.
接下来，我将把电话交给 Leaf。Leaf 将用中文发表他的评论，我会进行翻译。
Leaf Li
[Foreign Language] [外语]
[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 newer ones.
感谢大家参加我们今天的财报电话会议。我们本季度新增净付费客户 154,000 人，同比增长 138%，环比持平。我们的总付费客户达到约 220 万人，同比增长 33%。到 2024 年第三季度，我们已获得 487,000 名付费客户，我们预计全年增长将轻松超过我们指导的 550,000 名，这得益于成熟市场的稳健增长和新兴市场的强劲势头。
[Foreign Language] [外语]
[Interpreted] As we continue to iterate on various client acquisition strategies and launched effective campaigns amid elevated market sentiments, client acquisition accelerated in Hong Kong and Singapore, which collectively contributed to over one-third of new paying clients. Three quarters in a row, Malaysia remained the top contributor of new paying clients among our southern markets. 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 dwindling interest in Japan equities among retail investors amid market pullback in the third quarter.
随着我们不断迭代各种客户获取策略，并在市场情绪高涨的情况下推出有效的活动，香港和新加坡的客户获取加速，这两个市场合计贡献了超过三分之一的新付费客户。连续三个季度，马来西亚在我们的南部市场中仍然是新付费客户的最大贡献者。我们致力于进一步提升在马来西亚的品牌形象，并扩大产品供应，以增强我们作为一站式投资平台的价值主张。在日本，尽管第三季度市场回调导致散户投资者对日本股票的兴趣减弱，我们在客户获取方面仍取得了稳步进展。
[Foreign Language] [外语]
[Interpreted] In terms of new product offerings, we rolled out U.S. stock Dividend Reinvestment Plan in Hong Kong, we launched NISA savings account and mutual funds in Japan, and recently supported U.S. margin trading and Japan options trading, which started to gain decent traction among our clients. In Malaysia, we rolled out ringgit and USD denominated money market funds. We also became the first broker in Malaysia to offer U.S. options trading.
在新产品方面，我们在香港推出了美国股票股息再投资计划，在日本推出了 NISA 储蓄账户和共同基金，并最近支持了美国保证金交易和日本期权交易，这些交易在我们的客户中开始获得良好反响。在马来西亚，我们推出了以林吉特和美元计价的货币市场基金。我们还成为马来西亚首家提供美国期权交易的经纪商。
类似未满足的需求还有很多。
[Foreign Language] [外语]
[Interpreted] Total client assets grew 48% year-over-year and 20% quarter-over-quarter to HK$693 billion. The sequential increase was due to strong net asset inflow across markets and to a greater extent, the appreciation of client stock holdings in the China equity surged towards quarter-end. In Singapore, total and average client assets grew by 18% and 10% quarter-over-quarter, driven by robust net asset inflow and favorable market movements. U.S., Canada and Australia all recorded double-digit sequential growth in average client assets for the third consecutive quarter. In third quarter, our clients maintained their risk-on mode as evidenced by a single-digit sequential growth in daily average margin balance. Sharp market movements in September prompted some clients to take profit. As a result, margin financing and securities lending balance as of quarter-end slipped by 7% to HK$41 billion.
[解释] 客户总资产同比增长 48%，环比增长 20%，达到 6930 亿港元。环比增长是由于各市场的强劲净资产流入，更大程度上是由于中国股票持有的客户资产在季度末大幅升值。在新加坡，客户总资产和平均资产环比增长 18%和 10%，主要受强劲的净资产流入和有利的市场走势推动。美国、加拿大和澳大利亚连续第三个季度录得两位数的平均客户资产环比增长。第三季度，我们的客户保持了风险偏好模式，日均保证金余额环比增长为个位数。9 月份的剧烈市场波动促使一些客户获利了结。因此，季度末的保证金融资和证券借贷余额下降了 7%，至 410 亿港元。
[Foreign Language] [外语]
[Interpreted] Total trading volume grew by 17% quarter-over-quarter to HK$1.9 trillion, of which U.S. stock trading volume outpaced the overall growth by rising 23% sequentially to HK$1.53 trillion. The growth in U.S. stock trading was fueled by elevated trading interests in technology stocks and leveraged ETFs amid heightened volatility in August. 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 volume slipped by 3% quarter-over-quarter to HK$348 billion. Notably, during the week of September 23rd, 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.
[解释] 总交易量环比增长 17%至 1.9 万亿港元，其中美国股票交易量环比增长 23%至 1.53 万亿港元，超过整体增长。8 月份，由于科技股和杠杆 ETF 的交易兴趣增加，美国股票交易的增长得到了推动。尽管 7 月和 8 月的情绪低迷且交易活动相对平淡，但我们的客户在 9 月份迅速恢复了对中国股票的兴趣。总体而言，香港股票交易量环比下降 3%至 3480 亿港元。值得注意的是，在 9 月 23 日那一周，香港股票交易量环比激增 267%，并与中国 ADR 一起，占据了我们当周交易量的一半以上。
[Foreign Language] [外语]
[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 HK$97 billion. Around 27% of our paying clients held 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.
财富管理在货币市场基金和固定收益基金诱人的收益推动下，再次录得强劲增长。截至季度末，客户总资产同比增长 87%，环比增长 22%，达到 970 亿港元。约 27%的付费客户持有财富管理产品，高于第二季度的 25%。为了满足客户对资产配置的需求，我们在香港和新加坡推出了基于 ETF 的机器人顾问服务。
[Foreign Language] [外语]
[Interpreted] We have 461 IPO distribution and IR clients, up 17.9% year-over-year. We underwrote the three largest Hong Kong IPOs in the first three quarters of 2024.
[Interpreted] 我们有 461 个 IPO 分销和 IR 客户，同比增长 17.9%。我们承销了 2024 年前三个季度香港最大的三次 IPO。
[Foreign Language] [外语]
[Interpreted] Next, I'd like to invite our CFO, Arthur, to discuss our financial performance.
接下来，我想邀请我们的首席财务官阿瑟来讨论我们的财务表现。
Arthur Chen
Thank you, Leaf and Daniel.
谢谢，Leaf 和 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.
请允许我向您介绍我们第三季度的财务表现。除非另有说明，所有数字均以港币计算。
Total revenue was HK$3.4 billion, up 30% from HK$2.7 billion in the third quarter of 2023.
总收入为 34 亿港元，比 2023 年第三季度的 27 亿港元增长了 30%。
Brokerage commission and handling charge income was HK$1.5 billion, up 52% year-over-year and 11% Q-over-Q. The increase was mainly driven by a 75% year-over-year and 70% Q-over-Q growth in total trading volume, partially offset by the decline in blended commission rate as our client gravitate towards higher-priced stocks. Our blended commission rate went down from 8.5 basis point to 8 basis point Q-over-Q.
经纪佣金和手续费收入为 15 亿港元，同比增长 52%，环比增长 11%。增长主要由总交易量同比增长 75%和环比增长 70%推动，部分被客户倾向于高价股票导致的综合佣金率下降所抵消。我们的综合佣金率从 8.5 个基点环比下降到 8 个基点。
Interest income was HK$1.7 billion, up 13% year-over-year and 7% Q-over-Q. The year-over-year increase was mainly driven by higher margin financing 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 the margin financing income.
利息收入为 17 亿港元，同比增长 13%，环比增长 7%。同比增长主要是由于日均保证金余额增加导致的更高的保证金融资收入，以及证券借贷业务的更高利息收入。环比增长主要是由于银行存款利息收入和保证金融资收入的增长。
Other income was HK$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.
其他收入为 2.09 亿港元，同比增长 52%，环比增长 30%。同比和环比增长主要归因于更高的基金分销收入和更高的货币兑换收入。
Our total cost was HK$625 million, an increase of 43% from HK$437 million in the third quarter of 2023.
我们的总成本为 6.25 亿港元，比 2023 年第三季度的 4.37 亿港元增加了 43%。
成本增长速度快于收入的增长速度。
Brokerage commission and handling charge expenses were HK$82 million, up 30% year-over-year. Brokerage expenses grew by a narrow margin than brokerage income year-over-year, mainly due to cost saving from our U.S. self-clearing business.
经纪佣金和手续费支出为 8200 万港元，同比增长 30%。经纪费用的同比增幅小于经纪收入，主要由于我们美国自清算业务的成本节省。
Interest expenses was HK$414 million, up 43% year-over-year and 10% Q-over-Q. The year-over-year and the Q-over-Q increase was mainly driven by higher interest expenses associated with our security borrowing and the lending business.
利息支出为 4.14 亿港元，同比增长 43%，环比增长 10%。同比和环比增长主要是由于与我们的证券借贷和贷款业务相关的利息支出增加所致。
Processing and servicing costs were HK$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.
处理和服务成本为 1.3 亿港元，同比增长 51%，环比增长 19%。同比增长主要是由于业务规模扩大导致的更高的产品服务费和数据传输费。
As a result, total gross profit was HK$2.8 billion, an increase of 27% from HK$2.2 billion in the third quarter of 2023. Gross margin was 81.8% as compared to 83.5% in the year-ago quarter.
因此，总毛利润为 28 亿港元，比 2023 年第三季度的 22 亿港元增长了 27%。毛利率为 81.8%，而去年同期为 83.5%。
Operating expenses went up 21% year-over-year and a flattish Q-over-Q to HK$1.1 billion.
运营费用同比增长 21%，环比持平至 11 亿港元。
R&D expenses were HK$385 million, up 7% year-over-year and 3% Q-over-Q. The year-over-year and Q-over-Q increase were mainly driven by increasing R&D headcount to support new products and new markets.
研发费用为 3.85 亿港元，同比增长 7%，环比增长 3%。同比和环比增长主要是由于增加研发人员以支持新产品和新市场。
Selling and marketing expenses were HK$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.
销售和营销费用为 3.14 亿港元，同比上升 49%，环比下降 7%。同比增长主要由新付费客户的三位数同比增长推动，部分被较低的客户获取成本抵消。环比下降主要由于客户获取效率的提高。
G&A expenses were HK$381 million, up 18% year-over-year and 5% Q-over-Q. The year-over-year and the Q-over-Q increase was primarily due to increase in headcount for general and administrative personnel.
一般及行政费用为 3.81 亿港元，同比增长 18%，环比增长 5%。同比和环比增长主要是由于一般和行政人员的员工人数增加。
As a result, income from operation increased by 31% year-over-year and 7% -- 17% year-over-year -- Q-over-Q to HK$1.7 billion. Operating margin increased to 50.4% from 49.8% in the third quarter of 2023.
因此，运营收入同比增长 31%，环比增长 7% -- 同比增长 17% -- 达到 17 亿港元。2023 年第三季度，营业利润率从 49.8%提高到 50.4%。
Our net income increased by 21% year-over-year and 9.1% Q-over-Q to HK$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. Lower net income margin was mainly due to the unrealized foreign exchange loss from the appreciation of RMB in the third quarter.
我们的净收入同比增长 21%，环比增长 9.1%，达到 13 亿港元。净收入利润率在第三季度下降至 38.4%，而去年同期为 41.2%。净收入利润率下降主要是由于第三季度人民币升值导致的未实现外汇损失。
增长速度明显快于IBKR，对某个客户群体有天然的亲和力。
Our effective tax rate for the quarter was 15.3%.
我们本季度的有效税率为 15.3%。
In addition, we are pleased to announce that our Board of Directors approved a special cash dividend of US$0.25 per ordinary shares or US$2 per ADS to holders of ordinary shares and the holders of ADS of record as of the close of business on December 6, 2024.
此外，我们很高兴地宣布，我们的董事会批准了一项特别现金股息，普通股每股 0.25 美元或每份 ADS 2 美元，适用于截至 2024 年 12 月 6 日营业结束时的普通股持有人和 ADS 持有人。
That concludes our prepared remarks. We now like to open the call to questions. Operator, please go ahead.
这就是我们准备的发言。现在我们想开放提问环节。接线员，请继续。
Question-and-Answer Session
问答环节
Operator 操作员
Thank you. [Operator Instructions] And the first question comes from the line of Cindy Wang from China Renaissance. Please go ahead. Your line is now open.
谢谢。[操作说明] 第一个问题来自华兴资本的 Cindy Wang。请开始提问。您的线路已打开。
Cindy Wang
[Foreign Language] [外语]
So, thanks for taking my question. I have two questions here. First, since the China asset 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 stock trading volume and ADR trading volume as a percentage of your total trading volume? And would that help your overall blended commission rate in fourth quarter, and also, the new customer acquisition in Hong Kong?
所以，谢谢你回答我的问题。我这里有两个问题。首先，自从中国资产在——自九月底以来上涨，所以基于第四季度的当前运行率，你能否给我们一些关于香港股票交易量和 ADR 交易量占你总交易量百分比的情况？这是否会帮助你在第四季度的整体混合佣金率，以及在香港的新客户获取？
Second question is related to crypto. Can you give us some color on the crypto development in third quarter? And will the Bitcoin price rally since October would help your overall [transaction amount] (ph) and the new paying client? And also, could you give us update for the VATP license in Hong Kong? Thank you.
第二个问题与加密货币有关。您能否为我们介绍一下第三季度的加密货币发展情况？自十月以来，比特币价格的上涨是否会帮助您整体的[交易金额] (ph) 和新的付费客户？另外，您能否更新一下香港的 VATP 牌照情况？谢谢。
Arthur Chen
Thank you, Cindy. Let me answer your second question about crypto, and I will leave the first question to my colleague, Daniel.
谢谢你，Cindy。让我来回答你的第二个关于加密的问题，第一个问题我会留给我的同事 Daniel。
[Foreign Language] [外语]
In terms of the updates of VATP license, we are still in the process of being reviewed by the regulators in terms of some on-site visits and for their inquiries. Hopefully, we can give the market some update in the near futures. And as Leaf mentioned in the opening remark, 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 US$10 million to US$20 million every day. 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 would definitely give us positive help in our new client acquisitions in Hong Kong recently.
关于 VATP 许可证的更新，我们仍在接受监管机构的审查，包括一些现场访问和他们的询问。希望我们能在不久的将来向市场提供一些更新。正如 Leaf 在开场白中提到的，我们已经在第三季度在香港推出了加密货币业务。根据最近的数据，我们认为用户的渗透率和交易量都非常显著地增加。现在，我认为香港加密资产的日均交易量在 1000 万至 2000 万美元之间。我确实认为渗透率和交易量将继续保持当前的势头。考虑到最近数字资产的上涨，这无疑会对我们最近在香港的新客户获取提供积极帮助。
Daniel Yuan
[Foreign Language] [外语]
So, in late September, early October, the trading volume and the percentage of trading volume of Hong Kong stocks and China ADRs experienced a rapid surge. And as Leaf 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. So, in the first -- in the fourth quarter so far, the U.S. equities have performed very well, especially around the U.S. 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 U.S. stock trading volume.
因此，在九月下旬和十月初，香港股票和中国 ADR 的交易量及其交易量百分比迅速激增。正如 Leaf 在开场白中提到的，香港股票和中国 ADR 的交易量贡献一度超过 50%。随后，由于许多中国资产出现回调，这两个数字有所下降，但总体上仍然比我们在第三季度看到的要强得多。因此，在第四季度的第一个月，美国股票表现非常好，尤其是在美国大选期间。一些我们客户特别喜欢的科技股经历了快速上涨。因此，总体而言，在第四季度，我们的美国股票交易量出现了非常显著的环比增长。
And as for the blended commission rate, as you are aware, there are a number of factors that affect our blended commission rate. 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 derivative, which brought a slight decline in blended commission rate.
至于综合佣金率，如您所知，有许多因素会影响我们的综合佣金率。到目前为止，在第四季度，我们看到佣金率略有回落，主要是因为我们的现金股票交易量增长速度快于衍生品，这导致综合佣金率略有下降。
And in terms of client acquisition, quarter-to-date, we have seen an increase in our new paying clients. And that increase is primarily attributable to our Hong Kong client acquisition, mostly because the Hong Kong stock and China ADRs performed very well in October -- in early October and had experienced continued volatility, which helped with client acquisition. Thank you.
在客户获取方面，截至本季度，我们的新付费客户有所增加。这一增长主要归因于我们在香港的客户获取，主要是因为香港股票和中国 ADR 在十月初表现非常好，并经历了持续的波动，这有助于客户获取。谢谢。
Operator 操作员
Thank you. We will now take our next question. Please standby. And the next question comes from the line of Chiyao Huang from MS. Please go ahead. Your line is now open.
谢谢。我们现在将回答下一个问题。请稍候。下一个问题来自 MS 的黄启尧。请开始提问。您的线路已打开。
Chiyao Huang
[Foreign Language] [外语]
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 overseas market and also the related investments in these markets. And will we have a more recurring shareholder return plans in the next, say, two to three years?
所以，我有两个问题。一个是关于特别股息的思考，特别是如何将其与海外市场的增长潜力以及在这些市场的相关投资联系起来。我们是否会在接下来的两到三年中有更经常性的股东回报计划？
The 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 depend on the client acquisition number? So, what should we expect for the [fixed budget] (ph) to grow in 2025 given [our plan] (ph) in the different overseas market? Thank you.
第二个问题是关于销售和市场营销费用的。所以，我想知道销售和市场营销费用中哪一部分应该更固定，哪一部分应该更具可变性并取决于客户获取数量？那么，鉴于我们在不同海外市场的计划，2025 年固定预算的增长应该是什么样的？谢谢。
Arthur Chen
Thank you, Chiyao. Let me answer your first questions about the special dividend. And I also will leave the second question to Daniel.
谢谢，Chiyao。让我回答你关于特别股息的第一个问题。我也会把第二个问题留给 Daniel。
[Foreign Language] [外语]
As you may be aware, Chiyao, this year, in particular third quarter is a very special moment for Futu. A couple of weeks ago, we just celebrated our 12th anniversary of Futu. And this is also the fifth anniversary since the inception of our IPO in 2019. We very -- pay attention to the shareholder reward and the shareholder values. 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.
正如你所知，Chiyao，今年尤其是第三季度对富途来说是一个非常特殊的时刻。几周前，我们刚刚庆祝了富途成立 12 周年。这也是自 2019 年我们 IPO 以来的第五周年。我们非常关注股东回报和股东价值。自 2021 年以来，我们设立了一系列股票回购计划，以表明我们对股东价值的承诺。考虑到今年是我们上市的第五周年，我们希望借此机会向过去的长期股东表达感谢。这是此次特别现金股息分配的主要原因。
And the total size for this cash dividend amounting to US$280 million, which accounts to 7.8% of total net equities as the end of the third quarter. 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.
此次现金股息总额为 2.8 亿美元，占第三季度末净资产总额的 7.8%。考虑到我们的资产负债表和手头现金，我们认为这一规模是合适的，并且不会对我们的客户获取和当前运营产生任何负面影响。
股价高了就支付股息，理性的策略。
As to whether we will set up 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.
至于我们是否会制定更明确的股息分配政策，我们将在考虑市场状况和未来业务发展后于明年重新审视。非常感谢。
Daniel Yuan
[Foreign Language] [外语]
So, among our sales and marketing expense, 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 expense 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.
因此，在我们的销售和市场营销费用中，超过 50%与薪资相关，这可以解释为性质上更固定，其余部分与市场营销相关。由于我们今年在几个新市场已经度过了初期的快速扩张阶段，并且明年没有在任何新市场推出的迫切计划，所以总体来看，从员工人数的角度来看，我认为我们明年会相对谨慎。而市场营销费用将取决于多种外部因素。因此，在明年三月的第四季度财报电话会议上，我们将提供更多指导。谢谢。
Chiyao Huang
[Foreign Language] [外语]
Operator 操作员
Thank you. We will now take our next question. Please standby. And the next question comes from the line of You Fan from CICC. Please go ahead. Your line is now open.
谢谢。我们现在将回答下一个问题。请稍等。下一个问题来自中金公司的游凡。请开始提问。您的线路已打开。
You Fan
[Foreign Language] [外语]
Thanks management for taking my question. This is Yoyo Fan from CICC. And I have two questions here. The first one is regarding the AUM breakdown. How much is from the clients' net asset inflow and how much from the market-to-market appreciation? And what's the regional breakdown of the client assets?
感谢管理层回答我的问题。我是来自中金公司的范悠悠。我有两个问题。第一个是关于资产管理规模的细分。客户净资产流入占多少，市场增值占多少？客户资产的地区分布情况如何？
The second question is about 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.
第二个问题是关于当前利息收入的明细。此外，您能否详细说明利率下调对我们净利息收入的影响？谢谢。
Arthur Chen
Thank you, Yoyo. I will answer your second question about the interest income breakdowns, and I will leave the first question to Daniel.
谢谢，Yoyo。我会回答你关于利息收入明细的第二个问题，第一个问题留给 Daniel。
[Foreign Language] [外语]
In terms of the interest income breakdown, the structure is almost similar to the patterns in the second quarter. The interest income from our current idle cash roughly accounts for 40% to 45% of our total interest income, and the remaining part mainly goes to the margin financing and the stock borrowing, lending et cetera. There is no update in terms of the sensitivity implications from the federal rate cut. In the third quarter, what we observed is that given a lot of clients locking their profit in the third quarter end, the absolute amount coming from the idle cash become bigger, which partially offset the negative implications of the rate cut in the U.S.
就利息收入的构成而言，结构几乎与第二季度的模式相似。我们当前闲置现金的利息收入大约占我们总利息收入的 40%到 45%，其余部分主要用于保证金融资和股票借贷等。关于联邦利率削减的敏感性影响没有更新。在第三季度，我们观察到，由于许多客户在第三季度末锁定了他们的利润，来自闲置现金的绝对金额变得更大，这在一定程度上抵消了美国利率削减的负面影响。
Daniel Yuan
[Foreign Language] [外语]
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，就本季度客户资产增长而言，其中一半以上来自于客户资产的市场增值，尤其是在季度末中国股市表现异常出色的时候。因此，第三季度整体净资产流入仍然非常强劲。由于第二季度的高基数，数字环比略有下降，但仍远超第一季度的数字。
And in terms of the breakdown between different geographies, Hong Kong market still contributed the majority of our net asset inflow, followed by Singapore. And three quarters in a row, we have seen overseas markets contributed to over HK$10 billion in net asset inflow, and we are very optimistic about the sustainability of net asset inflow from overseas markets. Thank you.
在不同地区的分布方面，香港市场仍然贡献了我们净资产流入的大部分，其次是新加坡。连续三个季度，我们看到海外市场对超过 100 亿港元的净资产流入做出了贡献，我们对海外市场净资产流入的可持续性非常乐观。谢谢。
You Fan
[Foreign Language] [外语]
Thank you. 谢谢。
Operator 操作员
Thank you. We will now take our next question. Please standby. And the next question comes from the line of Charles Zhou from UBS. Please go ahead. Your line is now open.
谢谢。我们现在将回答下一个问题。请稍候。下一个问题来自瑞银的 Charles Zhou。请继续。您的线路已打开。
Charles Zhou
[Foreign Language] [外语]
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 we know 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 buyback or dividend going forward? So -- and what factors do you consider when you determine the buyback or the dividend? And what do you feel the investor will prefer currently?
首先，恭喜管理层。我认为这是一组非常稳健的业绩。我有一个关于特别股息的后续问题。我想我们知道股东，对吧，所以你们有回购和股息。那么，现在发放股息的理由是什么？你怎么看——所以你更倾向于回购还是未来的股息？那么——在决定回购或股息时，你考虑哪些因素？你觉得投资者目前更倾向于哪一个？
My second question is that compared with the Visible Alpha consensus, we're 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 HK$131.4 million, which is not small. So, for management, also would you please clarify -- so what is -- so could you please clarify for this item? And will this also affect your net profit going forward? Thanks.
我的第二个问题是，与 Visible Alpha 的共识相比，我们很高兴看到收入超出 4%，但净利润基本持平。我们还注意到有一项其他成本和损失为 1.314 亿港元，这并不小。因此，请管理层澄清一下——这是什么——您能否澄清一下这一项？这是否也会影响您未来的净利润？谢谢。
Arthur Chen
Thanks, Charles. I will take these two questions.
谢谢，查尔斯。我会回答这两个问题。
[Foreign Language] [外语]
Regarding the special dividend, actually we will use a combination of share buyback and also cash dividend. When we touch base with our investors, we do notice there are specific group of the potential investors do care the cash dividends, which give more visibilities of the cash inflows. So, going forward, actually, we will take into account the different demand from different shareholders in order to demonstrate our commitment to create shareholder value to all of our shareholders.
关于特别股息，实际上我们将使用股票回购和现金股息的组合。当我们与投资者接触时，我们确实注意到有特定的潜在投资者群体关心现金股息，因为这能提供更多的现金流入可见性。因此，展望未来，我们将考虑不同股东的不同需求，以展示我们对所有股东创造股东价值的承诺。
Then, regarding the breakdown of others, the nature behind that is mainly due to the unrealized foreign exchange loss arising from the RMB appreciations versus U.S. dollar and also the fluctuations of Singapore dollar versus the U.S. dollar, both of which are all non-cash items. 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 operation 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.
然后，关于其他项目的分解，其背后的性质主要是由于人民币相对于美元升值产生的未实现外汇损失，以及新加坡元相对于美元的波动，这些都是非现金项目。因此，如果我们——根据当前的汇率判断，第三季度的大部分其他项目将在第四季度被逆转。因此，如果我们去除运营部分的噪音，只关注我们的关键运营利润和收入，我认为收入和运营利润之间的增长趋势几乎是一致的。非常感谢。
Charles Zhou
[Foreign Language] [外语]
Thank you. Very clear. 谢谢。非常清楚。
Operator 操作员
Thank you. We will now take our next question. Please standby. And the next question comes from the line of Emma Xu from Bank of America Securities. Please go ahead. Your line is now open.
谢谢。我们现在将回答下一个问题。请稍候。下一个问题来自美国银行证券的 Emma Xu。请继续。您的线路已打开。
Emma Xu
[Foreign Language] [外语]
So, I have two questions. The first question is about the strategy in your major market. 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, Malaysia are doing well. And this quarter, you also emphasized that U.S., Canada and Australia's average client asset all recorded double-digit sequential growth for three consecutive quarters. So, what have you changed to the strategies in these major markets so that you see the improvement in the client quality, or is it majorly driven by the market appreciation especially in the U.S. market?
所以，我有两个问题。第一个问题是关于您主要市场的策略。您提到明年没有新市场的计划，所以可能会专注于现有市场。香港、新加坡、马来西亚表现良好。本季度，您还强调美国、加拿大和澳大利亚的平均客户资产连续三个季度录得两位数的环比增长。那么，您在这些主要市场的策略上做了哪些改变，以至于看到客户质量的改善，还是主要由市场升值推动，尤其是在美国市场？
And the second question is that there are lots of macro events recently, including the Fed rate cut, the stimulus policies from China and the U.S. election. So, do you see some meaningful changes in investors' trading behavior and asset allocation?
第二个问题是，最近有很多宏观事件，包括美联储降息、中国的刺激政策和美国大选。那么，您是否看到投资者的交易行为和资产配置发生了一些有意义的变化？
Daniel Yuan
[Foreign Language] [外语]
[Interpreted] [解释]
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 had -- gave out earlier. So, in terms of our trading volume mix, we saw a surge in the percent of trading volume contributed by Hong Kong stocks in China ADRs in late September and early October, and then the percentage pulled back a bit given the performance of China equities also pulled back, but overall, the percentage increased quarter-over-quarter. And in terms of U.S. stocks, the U.S. stocks have been generally performing very well fourth-quarter-to-date. Especially around U.S. elections, some of the technology stocks and virtual asset stocks performed exceptionally well and boosted the overall U.S. stock trading volume.
为了简要翻译我的两个答案，也许我会先回答你的第二个问题，因为这与我们之前给出的答案有些相似。因此，就我们的交易量组合而言，我们看到在九月底和十月初，中国 ADR 中的香港股票交易量百分比激增，然后由于中国股市表现回落，百分比略有回落，但总体而言，百分比环比增加。就美国股票而言，美国股票在第四季度迄今表现良好。尤其是在美国大选期间，一些科技股和虚拟资产股表现异常出色，提升了整体美国股票交易量。
And to your first question, you touched on a number of markets and it's hard to give a concise answer on our earnings call. I'm happy to chat more offline. 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 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 Southern markets, but instead we focus on learning more about users. We develop unique product pipelines. 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 seven markets. Thank you.
对于您的第一个问题，您提到了多个市场，很难在我们的财报电话会议上给出简明的答案。我很乐意在会后进一步交流。但总的来说，我认为随着时间的推移，我们对自己的业务有了更好的理解。我们对自身能力有了更好的了解。同时，我们对每一个市场和客户需求也有了更深入的理解。因此，我们对所有南方市场并没有采取一刀切的方法，而是专注于更多地了解用户。我们开发独特的产品线。我们有不同的营销信息。我们强调不同的独特卖点，并且我们有不同的客户运营策略。所以，总的来说，我认为我们将继续根据对这七个市场的理解进行迭代。谢谢。
Operator 操作员
Thank you. As there are no further questions, I would now like to hand back to Daniel Yuan for any closing remarks.
谢谢。由于没有其他问题，我现在想把时间交给 Daniel Yuan 做结束发言。
Daniel Yuan
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.
今天的电话会议到此结束。代表富途管理团队，我想感谢您今天的参与。如果您有任何进一步的问题，请随时与我或我们的投资者关系代表联系。谢谢，再见。
Operator 操作员
Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.
女士们，先生们，这就结束了今天的电话会议。感谢您的参与。您现在可以断开连接。
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