Q2 2025 Futu Holdings Ltd Earnings Call

In a listen only mode.

After management's prepared remarks.

Q&A session.

Today's conference call is being recorded.

If you have any objections you may now disconnect at this time.

I would now like to turn the conference over to your host for today's conference call Daniel Yung Chief of staff to see our head of strategy and I I'll ask you to please go ahead Sir.

Thanks, operator, and thank you for joining us today to discuss our second quarter 2025 earnings results. Joining me on the call today are Mr. <unk>, Li Chairman and Chief Executive Officer, Arthur Chen Chief Financial Officer, and Rob <unk> Senior Vice President <unk>.

Operator: Hello, ladies and gentlemen, welcome to Futu Holdings' second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, we have a Q&A session. Today's conference call is being recorded. If you have any objections, you may now disconnect at this time. I would now like to turn the conference over to our host for today's conference call, Daniel Yuan, Chief of Staff to CEO, Head of Strategy, and IR at Futu. Please go ahead, sir.

Speaker #2: Hello, ladies and gentlemen. Welcome to Futu Holdings' second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, we will have a Q&A session.

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 the company's control.

Speaker #2: Today's conference call is being recorded. If you have any objections, you may now 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 to the CEO, Head of Strategy and IR at Futu.

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 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 annual report.

Speaker #2: Please go ahead, sir.

Daniel Yuan: Thanks, operator, and thank you for joining us today to discuss our second quarter 2025 earnings results. Joining me on the call today are Leaf Hua 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 beliefs 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 factual 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 annual report. With that, I will now turn the call over to Li. Li will make his comments in Chinese, and I will translate.

Speaker #3: Thanks, operator. And thank you for joining us today to discuss our second quarter 2025 earnings results. Joining me on the call today are Mr. Li Hua, Chairman and Chief Executive Officer; Dr. Yu Chen, Chief Financial Officer; and Robin Xu, Senior Vice President.

With that I will now turn the call over to Lee leaf will make his comments in Chinese and our translator.

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Speaker #3: As a reminder, today's call may include forward-looking statements, which represent the company's belief regarding future events that are either uncertain by nature or outside of the company's control.

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Speaker #3: Forward-looking statements involving here-invest and uncertainties. We caution you that a number of important factors could cause factual results to differ materially from those contained in any forward-looking statements.

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Speaker #3: For more information about the potential risks and uncertainties, please refer to the company's filings with the SEC, including its annual report. With that, I will now turn the call over to Li.

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Speaker #3: Li will make his comments in Chinese, and I will translate.

Thank you all for joining our earnings call today as of quarter end total funded accounts reached approximately $2 9 million, representing a 41% increase year over year, and an 8% quarter over quarter.

Leaf Hua Li: million, 同比增长41%, 环比增长8%。Futu在国际化竞争中迎来了一个重要的里程碑。截至季度末, Futu Securities Hong Kong主体以外的有资产客户占比已经突破50%。其中, Singapore和U.S.是我们最大的海外市场。紧随其后的是快速扩张的Malaysia与Japan, Australia和Canada也展现出稳健的增长势头。不断拓展的国际版图有力印证了Futu成为有显著影响力的全球金融服务平台的公司愿景。

Speaker #4: 感谢大家参加今天的业绩会。截至二季度末, 有资产客户总数约290万, 同比增长41%。环比增长8%。富途在国际化进程中迎来了一个重要的里程碑, 截至季度末, 富途证券香港主体以外的有资产客户占比已经突破50%。其中, 新加坡和美国是我们最大的海外市场。紧随其后的是快速扩张的马来西亚与日本。澳大利亚和加拿大也展现出稳健的增长势头。不断扩展的国际版图有力印证了富途成为有显著影响力的全球金融服务平台的公司愿景。

We've reached a key milestone in our international expansion, which is as of quarter end over 50% of funded accounts from clients outside of <unk> security of Hong Kong.

Singapore and the U S. Our largest international market, followed by the rapidly expanding Malaysia, and Japan, While Australia, and Canada show robust growth momentum.

This expanding international footprint is a testament to our vision of becoming an influential global financial services platform.

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Daniel Yuan: Thank you all for joining our earnings call today. As of quarter-end, closed-funded accounts reached approximately 2.9 million, representing a 41% increase year-over-year and an 8% rise quarter-over-quarter. We reached a key milestone in our international expansion, which is, as of quarter-end, over 50% of funded accounts are from clients outside of Futu Securities Hong Kong. Singapore and the US are our largest international markets, followed by the rapidly expanding Malaysia and Japan, while Australia and Canada show robust growth momentum. This expanding international footprint is a testament to our vision of becoming an influential global financial services platform.

Speaker #3: Thank you all for joining our earnings call today. As of quarter-end, total funded accounts reached approximately 2.9 million, representing a 41% increase year-over-year and an 8% rise quarter-over-quarter.

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Speaker #3: We've reached a key milestone in our international expansion. As of quarter-end, over 50% of funded accounts are from clients outside of Futu Securities Hong Kong.

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Speaker #3: Singapore in the U.S. is our largest international market, followed by the rapidly expanding Malaysia and Japan, while Australia and Canada show robust growth momentum. This expanding international footprint is a testament to our vision of becoming an influential global financial services platform.

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Leaf Hua Li: Futu's value proposition as a one-stop trading platform.

Speaker #4: 本季度竞争有资产客户约20.4万, 同比增长32%。香港市场已连续第三个季度贡献最多的有资产客户增长。四月初受贸易摩擦影响, 市场波动加剧。随后贸易关系缓和, 推动股市迅速反弹。加之五月多宗高热度IPO的上线, 共同激发了零售投资者的市场参与热情。美国市场同样实现了稳健增长。在第二季度, 我们成为纽约大都会棒球队的官方赞助商。这一合作将持续扩大我们在美国乃至全球市场的品牌影响力。我们还于六月在美国的大部分州推出了加密货币交易服务, 进一步巩固了富途作为一站式交易平台的价值主张。

<unk>, which was already you guys Thats. All you can have that judges who've done during the quarter. We acquired 204000, new funded accounts, a 32% from a year earlier Hong Kong continued to lead all markets in new funded accounts for the third straight quarter elevated market volatility from trade tensions in early April followed by.

Sharp rebounds from trade shows as well as the wave of high profile Ipos and May spur retail participation.

Our U S business also delivered robust growth in the second quarter, we became the official sponsor of the New York met a P.

Partnership that will continue to broaden our brand reach in the U S and internationally.

We also allow us to crypto currency trading and most of the states in June reinforcing our value proposition as a one stop trading platform.

Daniel Yuan: During the quarter, we acquired 204,000 new funded accounts, up 32% from a year earlier. Hong Kong continued to lead all markets in new funded accounts for the third straight quarter. Elevated market volatility from trade tensions in early April, followed by a sharp rebound from trade truths, as well as a wave of high-profile IPOs in May, spurred retail participation. Our U.S. business also delivered robust growth. In the second quarter, we became the official sponsor of the New York Mets, a partnership that will continue to broaden our brand reach in the U.S. and internationally. We also launched cryptocurrency trading in most of the states in June, reinforcing our value proposition as a one-stop trading platform.

Speaker #3: During the quarter, we acquired 204,000 new funded accounts, a 32% increase from the year earlier. Hong Kong continued to lead all markets in new funded accounts for the third straight quarter.

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Speaker #3: Elevated market volatility from trade tensions in early April was followed by a sharp rebound from a trade truce, as well as a wave of high-profile IPOs in May, which spurred retail participation.

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Speaker #3: Our U.S. business also delivered robust growth. In the second quarter, we became the official sponsor of the New York Mets, a partnership that will continue to broaden our brand reach in the U.S. and internationally.

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Speaker #3: We also launched cryptocurrency trading in most of the states in June, reinforcing our value proposition as a one-stop trading platform.

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Leaf Hua Li: was again well above 98%, fully demonstrating the high loyalty and satisfaction of our global clients.

Speaker #4: ????????????????????????? IPO ?????????????????????????????????????????????? MoveFest Japan????? 12,000 ????????????????????????? NewNewAI ??????????????? MoveNewAI ?????????????????????????????????????????????????????????????????????????? 98%??????????????????????

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<unk> by Minister, which Bob <unk> General women tend to occur with <unk>, you might do in Malaysia, we further local lifestyle, our offerings by introducing IPO financing services for local listings and the Malaysian stock earnings calendar <unk>.

In Japan, we partner with NASDAQ and the Japan Exchange group to host our inaugural offline investment event moved up Japan, which attracted over 12000, Tokyo investors to plan up strengthening our brand recognition in Japan building on the successful debut of principal AIA in Hong Kong, we rolled out new AI across all international.

No market equipping investors worldwide with smarter tools and more efficient in that vein.

Client engagement remained strong across regions. Our funded account quarterly retention rate was once again, well above 98%, reflecting the high level of loyalty and satisfaction among our global client base.

Daniel Yuan: In Malaysia, we further localized our offerings by introducing IPO financing services for local listings and the Malaysian stock earnings calendar. In Japan, we partnered with NASDAQ and the Japan Exchange Group to host our inaugural offline investment event, MoveFest Japan, which attracted over 12,000 Tokyo investors to sign up, strengthening our brand recognition in Japan. Building on the successful debut of Futubull AI in Hong Kong, we rolled out Moomoo AI across all international markets, equipping investors worldwide with smarter tools for more efficient investing. Client engagement remains strong across regions. Our funded account quarterly retention rate was once again well above 98%, reflecting the high level of loyalty and satisfaction among our global client base.

Speaker #3: In Malaysia, we further localized our offerings by introducing IPO financing services for local listings and the Malaysian Stock Earnings Calendar. In Japan, we partnered with Nasdaq and the Japan Exchange Group to host our inaugural offline investment event, MoveFest Japan, which attracted over 12,000 Tokyo investors to sign up, strengthening our brand recognition in Japan.

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Speaker #3: Building on the successful debut of FutuBull AI in Hong Kong, we rolled out MoveNewAI across all international markets, equipping investors worldwide with smarter tools for more efficient investing.

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Speaker #3: Client engagement remained strong across regions. Our funded account quarterly retention rate was once again well above 98%, reflecting the high level of loyalty and satisfaction among our global client base.

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Leaf Hua Li: in early April, financing activities rebounded as risk appetite gradually recovered.

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Thanks to robust net asset inflows and favorable mark to market depreciation from Hong Kong and U S equity average client assets across all markets registered a sequential increase in Singapore average client assets and total client assets rose, 19% and 26% quarter over quarter respectively.

The group's margin financing and securities lending volumes remained stable at $51 4 billion at quarter end.

Daniel Yuan: By the end of the second quarter, total client assets hit a record $97.4 billion, up 68% year-over-year and 17% quarter-over-quarter. Notably, net asset inflow in the first half of 2025 nearly doubled compared to the same period last year. Thanks to robust net asset inflow and favorable mark-to-market appreciation from Hong Kong and U.S. equities, average client assets across all markets registered a substantial increase. In Singapore, average client assets and total client assets rose 19% and 26% quarter-over-quarter, respectively. The group's margin financing and securities lending balance remained stable at $5.14 billion by quarter-end. While clients initially deleveraged amid the sharp market downturn in early April, a gradual recovery in risk appetite fostered a rebound in margin financing activity.

Clients initially deleverage and that the sharp market downturn in early April a gradual recovery in risk appetite fostered a rebound in margin financing activity.

Speaker #3: By the end of the second quarter, total client assets hit a record $974 billion HKD, up 68% year-over-year and 17% quarter-over-quarter. Notably, net asset inflow in the first half of 2025 nearly doubled compared to the same period last year.

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Speaker #3: Thanks to robust net asset inflow and favorable mark-to-market appreciation from Hong Kong and U.S. equities, average client assets across all markets registered a sequential increase.

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Speaker #3: In Singapore, average client assets and total client assets rose 19% and 26% quarter-over-quarter, respectively. The group's margin financing and securities lending balance remained stable at HKD 51.4 billion by quarter-end.

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Speaker #3: While clients initially deleveraged amid the sharp market downturn in April, a gradual recovery in risk appetite fostered a rebound in margin financing activity.

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Leaf Hua Li: by active trading in the new consumption sector.

Speaker #4: 二季度总交易额达3.5万亿港元, 同比增长121%, 环比增长12%。本季度, 贸易谈判引发的市场波动推动日程交额创下新高, 加密货币市场的回暖也进一步拉动了交易量增长。美股成交额环比增长20%, 至2.7万亿港元。主要受新能源汽车及加密货币相关股票带动, 港股成交额环比下降9%, 至8,335亿港元。主要由于科技板块热度回落, 但部分被新消费板块的活跃成交所抵消。

While renewed enthusiasm in the crystal currency space further accelerated trading momentum.

Dr trading volume, 20% sequentially to $2 seven trillion, Hong Kong dollars led by EV in Crypto stock Hong Kong stock trading volume contracted 9% quarter over quarter to $833 5 billion Hong Kong dollars, primarily due to temporary interest in the technology sector, partially offset by higher turnover.

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Daniel Yuan: In the second quarter, total trading volume reached 3.59 trillion HKD, representing 121% year-over-year and 12% quarter-over-quarter growth. During the quarter, volatility stemming from trade talks drove unprecedented spikes in daily trading volume, while renewed enthusiasm in the cryptocurrency space further accelerated trading momentum. US stock trading volume climbed 20% sequentially to 2.7 trillion HKD, led by EV and crypto-related stocks. Hong Kong stock trading volume contracted 9% quarter-over-quarter to 833.5 billion HKD, primarily due to tempered interest in the technology sector, partially offset by higher turnover in new consumption names.

Speaker #3: In the second quarter, total trading volume reached $3.59 trillion HKD, representing a 121% year-over-year and a 12% quarter-over-quarter growth. During the quarter, volatility stemming from trade talks drove unprecedented spikes in daily trading volume, while renewed enthusiasm in the cryptocurrency space further accelerated trading momentum.

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Speaker #3: US stock trading volume climbed 20% sequentially to $2.7 trillion HKD. Led by EV and crypto stocks, Hong Kong stock trading volume contracted 9% quarter-over-quarter to $833.5 billion HKD.

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Speaker #3: Primarily due to tempered interest in the technology sector, partially offset by higher turnover in new consumption names.

And would a woman sources has one of the thing that can be with wealth management client assets were $163 $2 billion as of quarter end of 104% year over year, and 17% quarter over quarter in Hong Kong, Singapore, we strengthened our fixed income offerings with Hong Kong dollar and RMB denominated.

Leaf Hua Li: fund, solidifying our industry-leading position in digital asset innovation.

Speaker #4: 经贸财富管理客户资产达1,632亿港元, 同比增长104%, 环比增长17%。在香港和新加坡, 我们新增了以港币和人民币计价的债券及浮动利率债券, 进一步丰富了固定收益产品品类。在香港, 我们推出了保本型结构性产品, 成为首家为零售客户提供结构性产品的互联网券商。我们还成为香港首家也是唯一一家分销华夏基金香港代币化货币基金的互联网券商平台。巩固了我们在数字资产创新领域的行业领先地位。

Bonds as well as floating rate bonds and Hong Kong, we launched principal protected structure product, becoming the first online broker to offer retail facing structure product.

We also became the first and only online brokerage platform in Hong Kong to distribute China, AMC, Hong Kong, Tokyo Nice to money market funds solidifying our position at the forefront of digital innovation.

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Daniel Yuan: Wealth management client assets were HKD 163.2 billion as of quarter-end, up 104% year-over-year and 17% quarter-over-quarter. In Hong Kong and Singapore, we strengthened our fixed income offerings with HKD and RMB denominated bonds, as well as floating-rate bonds. In Hong Kong, we launched Principal Protected Structured Products, becoming the first online broker to offer retail-based structured products. We also became the first and only online brokerage platform in Hong Kong to distribute China AMC Hong Kong tokenized money market funds, solidifying our position at the forefront of digital asset innovation.

Speaker #3: Wealth management client assets were $163.2 billion HKD as of quarter end, up 104% year-over-year and 17% quarter-over-quarter. In Hong Kong and Singapore, we strengthened our fixed income offerings with HKD and RMB-denominated bonds, as well as floating-rate bonds.

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Speaker #3: In Hong Kong, we launched principal-protective structure products, becoming the first online broker to offer retail-facing structured products. We also became the first and only online brokerage platform in Hong Kong to distribute China AMC Hong Kong's tokenized money market funds.

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Leaf Hua Li: 认购人数和总认购金额均位居所有券商之首。2025 年上半年, 我们与港股 IPO 募资额排名前十中的六家企业合作, 并共有 12 个 IPO 在富途平台的认购金额突破百亿港元, 体现了我们卓越的零售分销实力。

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Speaker #4: 截至季度末, 我们服务的IPO分销及IR客户数量达517家, 同比增长15%。香港IPO市场延续了一季度的强劲势头。IPO宗数及投资者参与热度持续攀升。本季度, 我们作为联席账簿管理人参与了多项知名上市项目。值得一提的是, 在海天未夜IPO中, 我们吸引了创纪录的10.2万名认购者, 认购人数和总认购金额均位居所有券商之首。2025年上半年, 我们与港股IPO募资额排名前十中的六家企业合作, 并共有12个IPO在富途平台的认购金额突破百亿港元。体现了我们卓越的零售分销实力。

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At quarter end, we had 517 IPO distribution and IR clients up 15% year over year, Hong Kong IPO market gained further momentum from the first quarter with increased deal volume and rising investor participation.

During the quarter, we acted as joint book runners for multiple prominent lifting.

Notably in the heightened flavoring and food IPO, we attracted a record of 102000 subscribers ranking first among all brokers in both number of subscribers and total subscription amount.

In the first half of 2025, we partner with six of the 10 largest Hong Kong Ipos by fundraising slide and facilitated over 10 billion Hong Kong dollars subscription amount for 12, ipos each underscoring our unparalleled retail distribution capability.

Daniel Yuan: As of quarter-end, we had 517 IPO distribution and investor relations clients, up 15% year-over-year. Hong Kong IPO market gained further momentum from the first quarter, with increased deal volume and rising investor participation. During the quarter, we acted as joint bookrunners for multiple prominent listings. Notably, in the Hai Tin flavoring and food IPO, we attracted a record 102,000 subscribers, ranking first among all brokers in both number of subscribers and total subscription amount. In the first half of 2025, we partnered with six of the ten largest Hong Kong IPOs by fundraising size and facilitated over HKD 10 billion in subscription amount for 12 IPOs each, underscoring our unparalleled retail distribution capabilities.

Speaker #3: As of quarter end, we had 517 IPO distributions in IR clients, up 15% year-over-year. The Hong Kong IPO market gained further momentum from the first quarter, with increased deal volume and rising investor participation.

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Just opened is how we go to next I would like to invite our CFO Arthur to discuss our financial performance.

Thank you Lisa and Daniel Please allow me to walk you through our financial performance in the second quarter, all the numbers in Hong Kong dollars unless otherwise stated.

Speaker #3: During the quarter, we acted as joint-bid runners for multiple prominent listings. Notably, in the Hai Pin Flavoring & Food IPO, we attracted a record 102,000 subscribers.

Total revenue was $5 3 billion up 70% from $3 1 billion in the second quarter of 2024.

Speaker #3: Ranking first among all brokers in both the number of subscribers and total subscription amounts. In the first half of 2025, we partnered with six of the ten largest Hong Kong IPOs by fundraising slides and facilitated over $10 billion HKD in subscription amounts for 12 IPOs.

Brokerage Commission and handling charge income was $2 6 billion, an increase of 87% year over year in the 12% Q over Q.

Year over year increase was driven by higher trading volume, partially offset by the decline in blended commission rate, we adopt per share on a per contract pricing model for U S stocks in the U S option trading respectively.

Speaker #3: Underscoring our unparalleled retail distribution capabilities.

Leaf Hua Li: 接下来有请我们的首席财务官Arthur介绍我们的财务表现。

Speaker #4: 接下来有请我们的首席财务官Arthur介绍我们的财务表现。

A result brokerage income will grow at a slower rate than trading volume, where our clients trade higher priced stocks and options.

Daniel Yuan: Next, I would like to invite our CFO, Arthur Chen, to discuss our financial performance.

Speaker #3: Next, I'd like to invite our CFO, Arthur, to discuss our financial performance.

Arthur Chen: Thank you, Li and Daniel. Please allow me to walk you through our financial performance in the second quarter. All the numbers are in HKD unless otherwise noted. Total revenue was 5.3 billion, up 70% from 3.1 billion in the second quarter of 2024. Brokerage commission and handling charge income was 2.6 billion, an increase of 87% year-over-year and 12% Q/Q. The year-over-year increase was driven by higher trading volume, partially offset by the decline in blended commission rate. We adopt a per-share and per-contract pricing model for U.S. stocks and U.S. option trading, respectively. As a result, brokerage income will grow at a slower rate than trading volume when our clients trade higher-priced stocks and options. The Q/Q increase was mainly driven by the sequential growth in trading volume. Interest income was 2.3 billion, up 44% year-over-year and 11% Q/Q.

Speaker #5: Thank you, Li and Daniel. Please allow me to walk you through our financial performance in the second quarter. All the numbers are in HKD, unless otherwise noted.

The increase was mainly driven by the sequential growth in trading volume.

Interest income was $2 3 billion up 44% year over year, 11% Q over Q. The yield increase was driven by higher interest income from securities borrowing in the lending business bank deposits and the margin financing the Q over Q increase was driven by higher interest income from security Boeing in the lending business.

Speaker #5: Total revenue was $5.3 billion, up 70% from $3.1 billion in the second quarter of 2024. Brokerage commission and handling charge income was $2.6 billion, an increase of 87% year-over-year and 12% quarter-over-quarter.

Speaker #5: The year-over-year increase was driven by higher trading volume, partially offset by a decline in the blended commission rate. We adopt a per share and per contract pricing model for US stocks and US option trading, respectively.

Well as higher interest income from bank deposits, partially offset by lower module financing income due to a sequential decline in daily average margin financing balance.

Other income was 444 million up 176% year over year, and 41% Q over Q and year over year Q over Q increase was primarily attributable to higher fund distributions service income and the currency exchange income.

Speaker #5: As a result, brokerage income will grow at a slower rate than trading volume, where our clients trade higher-priced stocks and options. The quarter-over-quarter increase was mainly driven by the sequential growth in trading volume.

Speaker #5: Interest income was $2.3 billion, up 44% year-over-year and 11% quarter-over-quarter. The year-over-year increase was driven by high interest income from securities borrowing and the lending business, bank deposits, and margin financing.

Our total cost was 671 million an increase of 13% from $574 million in the second quarter of 2024.

Arthur Chen: The year-over-year increase was driven by high interest income from security borrowing and the lending business, bank deposits, and margin financing. The Q/Q increase was driven by higher interest income from security borrowing and the lending business, as well as higher interest income from bank deposits, partially offset by lower margin financing income due to sequential decline in daily average margin financing balance. Earns income was 444 million, up 176% year-over-year and 41% Q/Q. The year-over-year and the Q/Q increase was primarily attributable to higher fund distribution service income and the currency exchange income. Our total cost was 671 million, an increase of 13% from 574 million in the second quarter of 2024. Brokerage commission and handling charge expenses was 161 million, up 84% year-over-year and 12% Q/Q. Both the year-over-year and the Q/Q increase were roughly in line with the movement of our brokerage commission and handling charge income.

Focused commission and handling charge expenses was $106 1 million of 84% year over year as a 12% Q over Q, both the year over year in the Q over Q increase was roughly in line with the movement of our brokerage commission and handling charge income.

Speaker #5: The quarter-over-quarter increase was driven by higher interest income from securities borrowing and the lending business, as well as higher interest income from bank deposits. This was partially offset by lower margin financing income due to a sequential decline in the daily average margin financing balance.

Interest expenses was $307 million to $8 million flat year over year in the down 20% Q over Q the year over year increase.

Speaker #5: Other income was $444 million, up 176% year-over-year and 41% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were primarily attributable to higher fund distribution service income and currency exchange income.

Interest expenses associated with our security borrowing in the lending business was offset by the year over year decrease in margin financing interest expenses. The <unk> decrease was mainly due to lower interest expenses associated with our securities borrowing and lending business as well as lower margin financing interest expenses because.

Speaker #5: Our total cost was $671 million, an increase of 13% from $574 million in the second quarter of 2024. Brokerage commission and handling charge expenses were $161 million, up 84% year-over-year and 12% quarter-over-quarter.

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Consistent in the servicing costs was 133 million up 21% year over year and down 2% Q over Q.

Speaker #5: Both the year-over-year and the quarter-over-quarter increases were roughly in line with the movement of our brokerage commission and handling charge income. Interest expenses were $378 million, flat year-over-year and down 20% quarter-over-quarter.

The increase was largely due to higher data transmission fees and market information and data fees. A cumulative decline was mainly driven by lower market information and the data fee as well as lower crowd the service fees.

Arthur Chen: Interest expenses were 378 million, flat year-over-year and down 20% Q/Q. The year-over-year increase in interest expenses associated with our security borrowing and the lending business was offset by the year-over-year decrease in margin financing interest expenses. The Q/Q decrease was mainly due to lower interest expenses associated with our security borrowing and the lending business, as well as lower margin financing interest expenses because of the hybrid rate decline. Processing and servicing cost was 133 million, up 21% year-over-year and down 2% Q/Q. The year-over-year increase was largely due to higher data transmission fees and market information and data fees. The Q/Q decline was mainly driven by lower market information and the data fee, as well as lower cloud service fees. As a result, total gross profit was $4.6 billion, an increase of 82% from $2.6 billion in the second quarter of 2024.

Speaker #5: The year-over-year increase in interest expenses associated with our securities borrowing and lending business was offset by the year-over-year decrease in margin financing interest expenses. The quarter-over-quarter decrease was mainly due to lower interest expenses associated with our securities borrowing and lending business, as well as lower margin financing interest expenses because of the higher rate decline.

As a result total gross profit was $4 6 billion, an increase of 82% from $2 6 billion in the second quarter of 2024 gross margin was 87, 4% as compared to 81, 6% in the second quarter of 2024.

Operating expenses were up 21% year over year, and 3% of the Cuba Q2, $1 3 billion.

Speaker #5: Processing and servicing costs were $133 million, up 21% year-over-year and down 2% quarter-over-quarter. The year-over-year increase was largely due to higher data transmission fees and market information and data fees. The quarter-over-quarter decline was mainly driven by lower market information and data fees, as well as lower cloud service fees.

R&D expenses were $442 million up 18% year over year, and 14% Q over Q the year over year on the cubic to increase.

Mainly driven by greater investment investments in AI capabilities.

Selling and marketing expenses was 429 million up 27% year over year in the down 7% Q over Q.

Speaker #5: As a result, total gross profit was $4.6 billion, an increase of 82% from $2.6 billion in the second quarter of 2024. Gross margin was 87.4%, compared to 81.6% in the second quarter of 2024.

The increase was mainly attributable to higher new fund accounts, partially offset by lower acquisition cost per unit.

Arthur Chen: Gross margin was 87.4% as compared to 81.6% in the second quarter of 2024. Operating expenses were up 21% year-over-year and 3% Q/Q to $1.3 billion. R&D expenses were $442 million, up 18% year-over-year and 14% Q/Q. The year-over-year and the Q/Q increase was mainly driven by greater investments in AI capabilities. Selling and marketing expenses were $429 million, up 27% year-over-year and down 7% Q/Q. The year-over-year increase was mainly attributable to higher new fund accounts, partially offset by lower client acquisition costs per unit. The Q/Q decrease was due to sequential decrease in new fund accounts, partially offset by higher client acquisition costs per unit. General administrative expenses were $425 million, up 17% year-over-year and 2% Q/Q. The year-over-year increase was primarily due to an increase in general administrative headcounts. As a result, income from operation increased 126% year-over-year and 25% Q/Q to $3.3 billion.

Our cumulative decrease was due to sequential decrease in <unk> dot counts, partially offset by higher acquisition cost per unit.

Speaker #5: Operating expenses were up 21% year-over-year and 3% quarter-over-quarter, to $1.3 billion. R&D expenses were $442 million, up 18% year-over-year and 14% quarter-over-quarter. The year-over-year and quarter-over-quarter increases were mainly driven by greater investments in AI capabilities.

General and administrative expenses were $425 million up 17% year over year, and 2% Q over Q.

Year over year increase was primarily due to the increase in general and administrative headcount.

As a result income from operations increased to 126% year over year in the 25% Q O Q to $3 3 billion operating margin increased to 63% from 47, 3% in the second quarter of 2024, mostly due to strong topline growth and operating leverage.

Speaker #5: Selling and marketing expenses were $429 million, up 27% year-over-year and down 7% quarter-over-quarter. The year-over-year increase was mainly attributable to higher new funded accounts, partially offset by a lower client acquisition cost per unit.

Our net income increased by 113% year over year in the 20% of Cuba Q to $2 6 billion net income margin expense of 48, 4% in the second quarter as compared to 38, 6% in the same in the same quarter last year.

Speaker #5: The quarter-over-quarter decrease was due to a sequential decrease in new funded accounts, partially offset by higher client acquisition costs per unit. General administrative expenses were $425 million, up 17% year-over-year and 2% quarter-over-quarter.

<unk> tax rate for the quarter was $18.

Speaker #5: The year-over-year increase was primarily due to an increase in general administrative headcounts. As a result, income from operations increased to 126% year-over-year and 25% quarter-over-quarter, to $3.3 billion.

4%.

That concludes our prepared remarks, we'd now like to open the call to questions. Operator. Please go ahead. Thank you.

Thank you.

As a reminder to ask a question. Please press star one.

Arthur Chen: Operating margin increased to 63% from 47.3% in the second quarter of 2024, mostly due to strong top-line growth and operating leverage. Our net income increased by 113% year-over-year and 20% Q/Q to $2.6 billion. Net income margin expanded to 48.4% in the second quarter, as compared to 38.6% in the same quarter last year. Our effective tax rate for the quarter was 18.4%. That concludes our prepared remarks. We now like to open the call to questions. Operator, please go ahead. Thank you.

Speaker #5: Operating margin increased to 63% from 47.3% in the second quarter of 2024, mostly due to strong top-line growth and operating leverage. Our net income increased by 113% year-over-year and 20% quarter-over-quarter, to $2.6 billion.

On your telephone keypad.

For your name to be announced.

To have Joel Your question. Please press star one and one again.

Please standby as we compile the Q&A roster.

Thank you for your patience.

Speaker #5: Net income margin expanded to 48.4% in the second quarter, as compared to 38.6% in the same quarter last year. Our effective tax rate for the quarter was 18.4%.

Thank you for your patience, please standby as we compile the Q&A roster.

Our first question comes from the line of Cindy Wang from China, Richard on that please.

Speaker #5: That concludes our prepared remarks. We now would like to open the call to questions. Operator, please go ahead. Thank you.

Go ahead.

Just Brian can go on to the Q&A to playing a high there.

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Operator: Thank you. As a reminder, to ask a question, please press star one and one on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by as we compile the Q&A roster. Thank you for your patience. Thank you for your patience. Please stand by as we compile the Q&A roster. Our first question comes from the line of Cindy Wen from China Resonance. Please go ahead.

Speaker #2: Thank you. As a reminder, to ask a question, please press *1 and 1 on your telephone keypad and wait for your name to be announced.

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Speaker #2: To withdraw your question, please press star, one, and one again. Please stand by as we compile the Q&A roster. Thank you for your patience.

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Speaker #2: Thank you for your patience. Please stand by as we compile the Q&A roster. Our first question comes from the line of Assundi Wan from China Resonance.

Shannon Ginza, Dan Let me also remind attempting or does she knows she can.

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Thank you Kelvin.

Thanks for taking my call and congrats on a very good result in second quarter and I have two questions here first one is.

The net asset inflow was very strong in first half of this year and almost double compared to last year. So what's the reasoning behind it and.

Speaker #2: Please go ahead.

Cindy Wen: 谢谢关于请给我这个提问的机会, 然后也恭喜公司在第二季度有一个非常亮眼的一个表现。那我这边有两个问题想提问, 第一个的话想请教一下今年上半年我们这个新入金是几乎翻倍。可不可以跟我们大概说明一下这个背后的主要原因为何, 然后公司是否在行销上面有做一些调整去吸引这个投资人持续的入金。那下半年来看的话, 公司要如何这样维持新入金的一个强劲的一个趋势。那第二个问题的话想请教一下 Crypto 的业务。那目前我们在香港、新加坡以及美国这边都已经有上线了。那可以跟我们分享一下就从第二季度的表现或上半年的表现以及七月的状况, 在客户数、交易量这边的一个趋势是怎么样, 然后下半年这边我们有什么的产品或者新的市场会有上线的计划。那我很快的翻译一下我的问题, thanks for taking my call, and congrats for the very good result in the second quarter. I have two questions here. First one is, the net asset inflow was very strong in the first half of this year and almost doubled compared to last year. So, what's the reasoning behind it? Do you adjust any marketing campaign to attract asset inflow? How do you maintain the momentum in the second half? Second question is, Crypto trading has launched in Hong Kong, Singapore, and the U.S. Can you give us some color on the number of clients and trading volume in the second quarter or the first half and also July, and any new product or market will launch in the second half? Thank you.

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Second quarter or the first half and also July and any new product or market launch in second half. Thank you.

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Speaker #6: And I have two questions here. First one is, the net asset inflow was very strong in the first half of this year and almost double compared to last year.

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Speaker #6: So what's the reasoning behind it? And do you adjust any marketing campaigns to attract asset inflow? And how do you maintain the momentum in the second half?

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Speaker #6: Second question: Crypto trading has launched in Hong Kong, Singapore, and the U.S. Can you give us some insight on the number of clients and trading volume in the second quarter or the first half, as well as in July?

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Arthur Chen: 好的, 可以我来回答一下这两个问题。第一个是有关这个上半年入金的一个表现。我觉得可能几个方面的原因吧。第一, 从产品本身, 我们在今年上半年就像 Leaf Hua Li 之前在 opening remark 的时候提到的, 我们在产品本身是提供了比较多的一些新的一些产品, 无论是在 wealth management 方面, 包括在这个 cryptocurrency 方面, 今年上半年都有比较多的一些新的一些产品的一些推出。那随着我们整个的一个一站式的一个投资服务的一个体验的一个健全, 这个对于获取新的客户, 包括客户的这个入金都有比较好的一个帮助。那第二就是从我们的这个运营跟品牌的一个建设。那我们今年特别在 overseas market 推出了比较多的一些新的一些品牌的一些建设, 特别是像在美国市场, 我们在 Q2 的时候也跟这个美国的这个 New York Mets 有一个非常大的一个品牌的一个合作。那么从这个品牌合作的一个实际的一个效果来看, 无论对 U.S. market 的获客, 包括我们整个 overseas 的品牌映射导致的一个客户的入金的一个情况, 都是有比较明显的一个帮助的。那特别是我们今年上半年我们 Q2 来看, 我们整个 overseas market 的一个入金的一个规模, 已经基本达到去年全年的这样的一个入金的一个规模。所以从下半年的这个情况来看, 无论在品牌的一些建设, 比如说一些线下的一些门店的一些拓展, 以及我们的一些产品的, 新的一些产品, 特别在 wealth management 跟 cryptocurrency 方面的一些产品的一些提供方面, 我们会有更多的一些这个一些一些相应的一些产品会推出。那除了我们自身的这个原因, 当然就是今年上半年也就是从外部的这个环境来看, 因为整个今年 Hong Kong stock 跟 U.S. stock 的一个表现也都是非常好的, 也蕴含了比较多的一些投资的一些机会。这个当然对于我们的客户的入金的一个情绪也起到了一个一个正面的一个一个催化的一个作用。这是您的第一个问题。那第二个问题, 从 Crypto 的这个业务的这个角度来说, 确实我们在 Q2 陆续上线在不同的一些 market, 已经上线了 Crypto 相应的一些这个服务。那么因为上线的这个时间还是比较短的, 比如说 U.S., 我们基本大概是在 June 的时候上线的。那么从 June 包括 July 的这个目前的这个情况来看, 整个我们在 Q2 Crypto 相关的这个 asset 的这个余额大概差不多达到 HKD 4 billion。那相比 Q1, 已经有一个超过 40% 以上的有环比的一个提升。那么在 July 这个日均最高的这个日均的这个交易量来看, 大概差不多是达到 $40 million 左右这样的一个体量。那么从下半年来看, 我们可能会在现在推出的一些新的一些 market 里面提供更多的一些产品的一些功能。举例来说, 我们会考虑在 Singapore 跟 U.S. 去提供相应的这个充币跟提币的这样的一个功能。这个功能是在前不久我们在 Hong Kong 已经已经这个推出来了。I will simply translate. In terms of a very strong asset inflow in the first half, I think the band alongside the benefit we got from the market itself, given that the U.S.

Speaker #5: All right, thank you. 我来回答一下这两个问题。第一个是有关这个上半年入金的一个表现。我觉得可能几个方面的原因吧。第一, 从产品本身, 我们在今年上半年就像Li之前在Opening remark的时候提到的, 我们在产品本身是提供了比较多的一些新的一些产品, 无论是在财富管理方面, 包括在这个加密货币方面, 今年上半年都有比较多的一些新的一些产品的一些推出。那随着我们整个的一个一站式的一个投资服务的一个体验的一个健全, 这个对于获取新的客户, 包括客户的这个入金都有比较好的一个帮助。那第二就是从我们的这个运营跟品牌的一个建设, 那我们今年特别在海外市场推出了比较多的一些新的一些品牌的一些建设, 特别是像在美国市场, 我们在二季度的时候也跟这个美国的这个棒球队Mets有一个非常大的一个品牌的一个合作。那么从这个品牌合作的一个实际的一个效果来看, 无论对美国市场的获客, 包括我们整个海外的品牌映射导致的一个客户的入金的一个情况, 都是有比较明显的一个帮助的。那特别是我们今年上半年, 我们二季度来看, 我们整个海外市场的一个入金的一个规模已经基本达到去年全年的这样的一个入金的一个规模。所以从下半年的这个情况来看, 无论在品牌的一些建设, 比如说一些线下的一些门店的一些拓展, 以及我们的一些产品的新的一些产品, 特别在财富管理跟加密货币方面的一些产品的一些提供方面, 我们会有更多的一些这个一些相应的一些产品会推出。那除了我们自身的这个原因, 当然就是今年上半年也就是从外部的这个环境来看, 因为整个今年港股跟美股的一个表现也都是非常好的, 也蕴含了比较多的一些投资的一些机会, 这个当然对于我们的客户的入金的一个情绪也起到了一个正面的一个催化的一个作用。这是您的第一个问题。那第二个问题, 从Crypto的这个业务的这个角度来说, 确实我们在二季度陆续上线在不同的一些市场, 已经上线了Crypto相应的一些这个服务。那么因为上线的这个时间还是比较短的, 比如说美国, 我们基本大概是在六月份的时候上线的。那么从六月份, 包括七月份的这个目前的这个情况来看, 整个我们在二季度Crypto相关的这个资产的这个余额大概差不多达到40亿港币。那相比一季度已经有一个超过40%以上的环比的一个提升。那么在七月份这个日均最高的这个日均的这个交易量来看, 大概差不多是达到4000万美元左右这样的一个体量。那么从下半年来看, 我们可能会在这个现在推出的一些新的一些市场里面提供更多的一些产品的一些功能。举例来说, 我们会考虑在新加坡跟美国去提供相应的这个充币跟提币的这样的一个功能。这个功能是在前不久我们在香港已经这个推出来了。那我简单翻译一下, in terms of a very strong asset inflow in the first half, I think the alongside the benefit we got from the market itself, given that the US market and the Hong Kong markets performed quite well in the first half, which definitely is a positive implication to the client asset inflows.

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Speaker #5: Internal-wise, on the broader side, we further enriched our product offering, especially in the first half. A lot of new products in the areas of wealth management, crypto, and fixed income actually provide further enrichment of our position as a one-stop investment platform for our users.

So for instance, there will begin a more physical store rollout in different markets in the second half and also there would be some newport offering in the wealth management.

Speaker #5: This will definitely be a positive for our clients' engagement and also new client asset inflows. On the marketing and branding side, operationally, we also put in a lot of effort, especially in the overseas markets such as the U.S. Our collaborations with Mets in the second quarter bear very strong fruit in terms of new client acquisition in the U.S., and the brand implications further expand to other overseas markets as well.

The crypto side as well in the <unk>.

For instance, we do have the plans to provide a crypto transfer and transfer our functionalities.

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Overseas markets alongside of the Hong Kong market as well.

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Specific for the critical Tradings, Inc.

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But we saw very strong clinical momentum in terms of crypto as a holding and also the trading velocity.

For instance, the asset value of the of the crystals at second quarter end.

Arthur Chen: In particular, in the second quarter, all the assets inflows from the overseas markets outside of Greater China, the amounts almost exceed the absolute amounts what we acquired from similar markets in 2024, which was very, very impressive. I think in the second half, we will continue to enhance our brand acquisitions. For instance, there will be more physical stalls rolled out in different markets in the second half. Also, there will be some new product offering in the wealth management and in the crypto side as well in the second half. For instance, we do have the plans to provide crypto transfer in and transfer out functionalities for overseas markets alongside the Hong Kong markets as well. Secondly, specific for the crypto tradings, in terms of the momentums, we saw very strong Q1, Q2 momentums in terms of crypto asset holding and also the trading velocity.

Speaker #5: In particular, in the second quarter, all the asset inflows from the overseas markets outside of Greater China amount to almost exceed the absolute amounts we acquired from similar markets in 2024.

<unk> reached $4 billion compared with the first half, which recording over 40% Q on Q increase.

Do.

I do believe that the numbers will continue to see a very strong robust.

In the third quarter as well thanks to affirm that the further penetration.

Speaker #5: Which was very impressive. I think in the second half, we will continue to enhance our brand acquisitions in terms of, for instance, there will be more physical stocks rolled out in different markets in the second half, and also there will be some new product offerings in wealth management and in the crypto side as well.

In our paying clients to engage crypto trading in.

In the second half will also there will be some new product.

Product pipelines in the crypto trading as well besides us.

Also doing some new feasibility studies for certain new markets, which we want to acquire the license exchange licenses.

Speaker #5: In the second half, for instance, we do have plans to provide crypto transfer in and transfer out functionalities for overseas markets alongside the Hong Kong markets as well.

Thank you.

Thank you gentlemen, our next question please.

Next we have Cheol Hwang from MFS. Please go ahead.

Speaker #5: And the secondly for specific for the crypto tradings, in terms of the momentums, we saw a very strong QR code momentums in terms of crypto asset holding and also the trading velocity.

Hey, good morning folks.

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Thank you George that.

Arthur Chen: For instance, the asset value of the cryptos at the second quarter end reached HKD 4 billion compared with the first half, which recorded over 40% Q1, Q2 increase. I do believe that the numbers will continue to see a very strong reverse in the third quarter as well, thanks to further penetrations in our paying clients to engage crypto tradings. In the second half, there will also be some new product pipelines in the crypto trading as well. Besides that, we are also doing some new feasibility studies for certain new markets which we want to acquire the exchange license as well. Thank you.

Do you think you could see that kind of drive crypto year with something unique here.

Speaker #5: For instance, the asset value of the cryptos at the second quarter end reached $4 billion HKD compared with the first half which recorded over 40% QRQ increase and I do see I do believe that the numbers will continue to see a very strong robust in the third quarter as well.

Thats helpful.

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Thiago. This is Glenn you guys have mentioned go ahead.

Hi, Robert.

Speaker #5: Thanks to the further penetration in our paying clients to engage in crypto trading. In the second half, we will also have some new product pipelines in crypto trading as well.

Jim.

Thank you and then just as I just mentioned.

And so I hope that you guys forget some of them can you give us a bit of sandoz and sue.

Yes.

Okay sounds good.

Speaker #5: Besides that, we are also doing some new feasibility studies for certain new markets, which we want to acquire the largest exchange license as well.

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Speaker #5: Thank you.

And then the other thing about and you want affiliation. Please over time can lead you totally Holman open.

Operator: Thank you. Just a moment for our next question, please. Next, we have Qiao Huang from MS. Please go ahead.

Speaker #2: Thank you. Just a moment for our next question, please. Next, we have Chu Yao Huang from MS. Please go ahead.

How do you see a value proposition that somehow.

Let me briefly translate two questions basically one is on crypto just wondering what's the mid to long term strategy strategic views on crypto business in terms of licensing products and also the potential for monetization and in particular I was wondering whats the strategic upside coming from the Crypto exchange license in Hong.

Leaf Hua Li: 好的, 感谢管理层给我提供的机会, 我是 MooWin Study 的黄志尧。我有两个问题想请教, 第一个也是关于 Crypto, 感谢管理层刚才也提供了一些这个关于 Crypto 最新的这个 color, 然后我想请教一下管理层对于在一个中长期来看, 在 Crypto 业务上面有哪些策略性的展望, 比方说在这个牌照的布局、产品的规划以及未来这种变现的空间有哪些展望。那么尤其是考虑到香港的这个 VATB 牌照, 我们觉得未来有哪些进一步充分利用的一些空间和业务的空间。第二个问题是关于这个日本市场的, 刚才也听到这个海外的入金有非常明显的这个进展, 想请问的就是在日本市场, 因为 Futu 进入日本市场也有两年左右的这个时间, 那么咱们对这个日本市场的认识有发生哪些变化, 包括这个当地的竞争格局以及这个存量的主要的这种竞争对手, 他们有哪些主要的竞争优势, 然后 Futu 是如何去调整这个我们的这个本地化的策略以及推出的产品的一些策略, 然后我们在日本可能现在最主要的一些 value proposition 大概是什么样, 谢谢。 Let me briefly translate two questions, basically. One is on Crypto. I am just wondering what is the mid to long-term strategic views on Crypto business in terms of licensing products and also the potential for monetization. In particular, I was wondering what is the strategic upside coming from the Crypto exchange license in Hong Kong. The second question is regarding the Japan market, as the company has been in the Japan market for almost two years. I guess what is the understanding about the market? Any change in the understanding, especially regarding the competitive landscape and the probably the major competitive strength of the incumbents?

Speaker #5: 好的, 感谢管理层给我提供的机会。我是摩根士丹利的黄志尧。我有两个问题想请教。第一个也是关于Crypto, 感谢管理层刚才也提供了一些这个关于Crypto最新的这个color, 然后我想请教一下管理层对于在一个中长期来看, 在Crypto业务上面有哪些策略性的展望, 比方说在这个牌照的布局、产品的规划以及未来这种变现的空间有哪些展望。那么尤其是考虑到香港的这个VATP牌照, 我们觉得未来有哪些进一步充分利用的一些空间和业务的空间。第二个问题是关于这个日本市场的, 刚才也听到这个海外的入金有非常明显的这个进展, 想请问的就是在日本市场, 因为不同进入日本市场也有两年左右的这个时间, 那么咱们对这个日本市场的认识有发生哪些变化, 包括这个当地的竞争格局以及这个存量的主要的这种竞争对手, 他们有哪些主要的竞争优势, 然后富途是如何去调整这个我们的这个本地化的策略以及推出了产品的一些策略, 然后我们在日本可能现在最主要的一些value proposition大概是什么样, 谢谢。 Let me briefly translate two questions basically. One is on crypto, and just wondering what's the mid to long-term strategic views on crypto business in terms of licensing products and also the potential for monetization.

And the second question is regarding the Japan market.

The company has been in Japan market for almost two years I guess, what's the.

Understanding about the market any change in the understanding, especially regarding the competitive landscape and the.

How do you get a major competitive strengths of the incumbents, how full do is dealing with the competition, what's our key value add at the moment and what is our targeted clients there versus the incumbents. Thank you.

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Speaker #5: And in particular, I was wondering what's the strategic upside coming from the crypto exchange license in Hong Kong. And the second question is regarding the Japan market. As the company has been in the Japan market for almost two years, what is the understanding about the market?

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Speaker #5: Any change in the understanding, especially regarding the competitive landscape and the major competitive strengths of the incumbents? How would we deal with the competition?

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Leaf Hua Li: How Futu is dealing with the competition, what is our key value at the moment, and what is our targeted clients there versus the incumbents? Thank you.

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Speaker #5: What's our key value add at the moment, and what's our targeted clients there versus the incumbents? Thank you. ???

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Arthur Chen: 好的，谢谢 Qiao。那我来回答第一个有关 crypto 的问题。那第二个有关日本市场的这个问题，我请我的同事 Daniel Yuan 来回答。那我个人觉得从这个 crypto 的这个战略的这个角度，我们现在大概是着重在四个方面，我们现在在做的这个东西。因为我觉得本身 crypto 对于像 Futu 这样的这个券商，包括其他行业内其他的这个券商来说，都是一个呃新的一个赛道。所以我想就是我们总结我们四个方面的现在做的这个东西，我把它总结成这个赛跑，这个 RACE。那 RACE 是呃这个 R 是代表这个 real world assets。那整个因为我们现在从事的这个业务，包括我们的客户群在传统的这个金融领域是有非常多的一些优势的。无论是从资产单的一个提供，包括我们非常强大的一个财富管理的这样的一个平台。那实际为呃这个更多的这个 RWA 的这个领域的一个探索其实奠定了一个非常好的一个基础。那呃举例来说，我们最近实际呃刚才 Leaf Hua Li 也讲到，我们最近可能跟呃 China Asset Management (China AMC) Hong Kong 在香港有一个呃非常好的一个合作。我们作为 China Asset Management (China AMC) Hong Kong 的第一个 tokenized money market fund，是我们是作为第一个，也是唯一一个在零售市场作为这个渠道的一个代销商在这个里面。那在财富管理的这个领域，我们实际已经跟全球知名的超过 80 家以上的资产管理公司有非常好的一个合作的关系。那目前我们有超过千亿的财富管理的这样的一个呃 AUM 的一个资产的一个管道。这是为我们以后跟更多的连接资产方的一个合作奠定了一个非常好的一个基础。那 A 代表 advanced technology。那我觉得任何的 crypto 相关的这个东西，从我们的一个角度更更多的是怎么样去提利用更好的一些呃这个 blockchain 的一个技术，特别是在安全性也好，在技术的技术呃迭代的更新方面也好，能发挥我们作为一个呃金融科技公司啊一个特有的一个能力在这个里面。虽然这个呃这个领域在短期并不一定能产生相应的收入，但我觉得从一个长期战略的一个角度来说，这是一个非常重要的一个基础，也是我们区分于非常多的其他的一些平台一个非常重要的一个因素在这个里面。那 C 代表 conversion。这个 conversion 我觉得是来自于两个方面的。一方面是 crypto native 的这个就是 crypto 原生的这个客户群，那另外一个是传统金融的这样的一个金融人群在这个里面。我们希望能够做到的是能够把这个两个人群的能够在 Futu 的这个平台上能够去融合。大家也可以看到呃从过去一段时间我们实际做了非常多的一些有关 crypto 的一些投效的一些工作。比如在几天之前我们实际刚刚上线给香港所有的零售客户提供了呃 Solana 呃相应的这个币种的一个交易。同时呢我们也有计划啊会这个推出更多的一些模拟交易 Solana 相关的模拟交易，能够让更多的一些呃这个新入的一些呃香港的零售投资者啊能够接触到呃 crypto 相关的一个资产。所以在这方面的一个变现啊它的体现并不一定完全是在 crypto 业务本身啊，也有可能这方面的一些变现是是体现在我们现有的一些传统的啊一些金融证券业务啊相关的这些领域的。那第四个 E 呢就是 exchange 啊也是这个就像你刚才讲到的是说呃我们在香港目前因为在呃这个 VATB 牌照的申请的第二个阶段啊那么呃我们也有考虑在香港呃包括 Singapore 啊 United States (US) 以外的其他的一些市场啊获取更多的呃跟交易所相关的一些相应的一些牌照啊那交易所作为整个连接呃这个 on-chain 跟 off-chain 啊非常重要的啊包括 crypto native 跟 traditional finance 啊不同的这些用户群里面非常重要的一个核心的一个点啊是未来啊我们非常重要的啊一个会投入呃投入啊的一个领域啊那么从呃呃 VATB 的相应的这个变现的一些空间啊我觉得啊还是非常巨大的啊那除了现呃本身啊在呃现有的这个环境里面它可能会给我们的用户提供更好的一些用户体验啊包括节约我们在呃上游的啊一些清洁算的一些相应的一些成本那更长远去看实际是呃对于我们整个的一个客户群也会有一个比较大的一个扩展啊我们的客户可能不再局限在啊我们自身的零售的一个客户里面啊也有可能会拓展到其他的啊这个其他的一些券商啊的相应的这些呃这个零售客户或者机构客户啊在里面啊那么另外呢就是说呃 exchange 作为一个非常重要的一个入口啊在未来呃更多的香港推动的 Web3 的这个创新啊领域里面啊无论是现在呃这个呃香港证监会在今年也提出了 Aspire 的啊这样的一个想法啊我们相信可能除了现在有关 crypto 相关的现货交易以外啊可能更多的啊未来无论是啊 staking 啊包括在这个一些 crypto 相关的一些衍生产品那一边啊实际都有非常多的啊一些变现的一些空间在这个里面啊所以呃这个是我们目前现在啊大概会去考虑啊或者我们的工作侧重的啊这四个方面啊那我简单翻译一下啊 I in in my personal view I think our narrative for for the whole group in in the crypto side can be consists of four aspects I will summarize I I call it the RACE.

Speaker #3: 好的, 谢谢奇尧。那我来回答第一个有关Crypto的问题。那第二个有关日本市场的这个问题, 我请我的同事Daniel来回答。那我个人觉得从这个Crypto的这个战略的这个角度, 我们现在大概是着重在四个方面。我们现在在做的这个东西, 因为我觉得本身Crypto对于像富途这样的这个券商, 包括其他行业内其他的这个券商来说, 都是一个新的一个赛道。所以我想就是我们总结我们四个方面的现在做的这个东西, 我把它总结成这个赛跑, 这个race。那race这个R是代表这个real world assets, 那整个因为我们现在从事的这个业务, 包括我们的客户群在传统的这个金融领域是有非常多的一些优势的, 无论是从资产端的一个提供, 包括我们非常强大的一个财富管理的这样的一个平台。那实际为这个更多的这个RWA的这个领域的一个探索, 其实奠定了一个非常好的一个基础。那举例来说, 我们最近实际刚才Li也讲到, 我们最近可能跟华夏基金在香港有一个非常好的一个合作, 我们作为华夏基金的第一个tokenized money market fund, 是我们是作为第一个也是唯一一个在零售市场作为这个渠道的一个代销商, 在这个里面。那在财富管理的这个领域, 我们实际已经跟全球知名的超过80家以上的资产管理公司有非常好的一个合作的关系。那目前我们有超过千亿的财富管理的这样的一个AUM的一个资产的一个管道, 这是为我们以后跟更多的连接资产方的一个合作奠定了一个非常好的一个基础。那A代表Advanced Technology, 那我觉得任何的Crypto相关的这个东西, 从我们的一个角度更多的是怎么样去提利用更好的一些这个blockchain的一个技术, 特别是在安全性也好, 在技术的技术迭代的更新方面也好, 能发挥我们作为一个金融科技公司一个特有的一个能力, 在这个里面。虽然这个这个领域在短期并不一定能产生相应的收入, 但我觉得从一个长期战略的一个角度来说, 这是一个非常重要的一个基础, 也是我们区分于非常多的其他的一些平台一个非常重要的一个因素在这个里面。那C代表Conversion, 这个Conversion我觉得是来自于两个方面的, 一方面是Crypto Native的这个就是Crypto原生的这个客户群, 那另外一个是传统金融的这样的一个金融人群在这个里面。我们希望能够做到的是能够把这两个人群的能够在富途的这个平台上能够去融合。大家也可以看到从过去一段时间, 我们实际做了非常多的一些有关Crypto的一些投效的一些工作, 比如在几天之前, 我们实际刚刚上线给香港所有的零售客户提供了Solana相应的这个币种的一个交易。同时呢, 我们也有计划会这个推出更多的一些模拟交易, Solana相关的模拟交易能够让更多的一些这个新入的一些香港的零售投资者能够接触到Crypto相关的一个资产。所以在这方面的一个变现, 它的体现并不一定完全是在Crypto业务本身, 也有可能这方面的一些变现是体现在我们现有的一些传统的金融证券业务相关的这些领域的。那第四个E呢, 就是Exchange, 也是这个Charlie刚才讲到的, 就是说我们在香港目前因为在这个VATP牌照的申请的第二个阶段, 那么我们也有考虑在香港的, 包括新加坡、美国以外的其他的一些市场获取更多的跟交易所相关的一些相应的一些牌照。那交易所作为整个连接这个on-chain跟off-chain非常重要的, 包括Crypto Native跟Traditional Finance不同的这些用户群里面非常重要的一个核心的一个点, 是未来我们非常重要的, 一个会投入的一个领域。那么从VATP的相应的这个变现的一些空间, 我觉得还是非常巨大的。那除了现在本身在现有的这个环境里面, 它可能会给我们的用户提供更好的一些用户体验, 包括节约我们在上游的一些清结算的一些相应的一些成本。那更长远去看, 实际是对于我们整个的一个客户群也会有一个比较大的一个扩展。我们的客户可能不再局限在我们自身的零售的一个客户里面, 也有可能会拓展到其他的这个其他的一些券商的相应的这些这个零售客户或者机构客户在里面。那么另外呢, 就是说Exchange作为一个非常重要的一个入口, 在未来更多的香港推动的Web3的这个创新领域里面, 无论是现在这个香港证监会在今年也提出了ASPIRE的这样的一个想法, 我们相信可能除了现在有关Crypto相关的现货交易以外, 可能更多的未来无论是staking包括在这个一些Crypto相关的一些衍生产品那一边, 实际都有非常多的一些变现的一些空间在这个里面。所以这个是我们目前现在大概会去考虑, 或者我们的工作侧重的这四个方面。那我简单翻译一下, In my personal view, I think our narrative for the whole group in the crypto side can be consists of four aspects.

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Personally I think our narrative.

For the whole group in the crypto side can be.

Consists of four aspects.

I will summarize.

I caught the race.

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The army is the real world assets, because we have a very strong positions in terms of the treasured traditional finance so there will be a lot of.

The Bosnian powers all positions.

In the traditional asset product offerings.

Since we have a very strong positions in the wealth management.

Segment, we have OLED partnership over eight.

Over <unk> water class fund manager companies.

For instance, recently, we just to our collaborations with China SM entering Hong Kong.

To be fair.

<unk>, an exclusive retail distributors for their first <unk> from money market funds.

Down the road I think such kind of collaborations.

In the <unk>.

Fund distributions how to connect traditional finance from web series from the offline to unchanged will be definitely a that would be very interesting areas to explore.

Secondly, the <unk> advanced technologies.

I think this is a very important part to set us apart from our partners or from our peers, because we always emphasize the safe safety as the FERC permit is one we do web three products.

Speaker #3: I will summarize; I call it the RACE, R-A-C-E. The R means the Real World Assets, because you know we have a very strong position in terms of traditional finance.

Arthur Chen: The R means the real world assets. Because you know we have a very strong positions in terms of the traditional finance. So there will be a lot of you know you know bargaining powers or positions in the traditional asset products offerings. For instance we have a very strong positions in the wealth management you know segment. We have already partnership over 80s world-class fund manager companies. For instance recently we just do our collaborations with China Asset Management (China AMC) Hong Kong to be the first and exclusive retail distributors for their first tokenized money market funds. Down the road I think such kind of collaborations in the you know fund distributions how to connect traditional finance from Web3s from the offline to on-chains will be definitely a very big very interesting areas to explore. Secondly, the A means advanced technologies.

Not to mention that.

We'll be more integrations for our AI capabilities, how to further utilize our AI capabilities to in the West segment as well certainly as the conversions between the traditional finance and the crypto native in terms of the.

Speaker #3: So there will be a lot of, you know, balcony powers or positions in the traditional asset products offerings. For instance, we have a very strong position in the wealth management, you know, segment.

Speaker #3: We have already partnered with over eight world-class fund manager companies; for instance, we recently collaborated with China Asset Management in Hong Kong.

The new client referrals and also the cross selling opportunities.

Since a couple of days ago, we just.

Launched.

Our product offerings for the full of our tradings to all Hong Kong retail investors.

We do have the plans to providing a paper trading for similar tradings.

Speaker #3: To be the first and exclusive retail distributors for their first tokenized money market funds. Down the road, I think such kind of collaborations in the you know fund distributions, how to connect traditional finance from Web3 from the offline to on-chains, will be definitely a very big very interesting areas to explore.

Very short time in order to further engage the newcomers.

To the to the Crypto universe.

The last word evenings exchange.

<unk>, we are in the phase III of the ATP license application in Hong Kong and we are doing the feasibility studies for more license applications in other markets exchange will definitely it will be.

Speaker #3: Secondly, the A means you know advanced technologies. I think this is a very important part to set us apart from our partners or from our peers because we always emphasize the safe safety as the first parameters when we do Web3 you know products.

Arthur Chen: I think this is a very important part to set us apart from our partners or from our peers because we always emphasize safety as the first parameters when we do Web3 products, not to mention there will be more integrations for our AI capabilities, how to further utilize our AI capabilities in the Web3 segment as well. Thirdly, is the convergence between the traditional finance and the crypto native in terms of the new clients' referrals and also the cross-selling opportunities. For instance, a couple of days ago, we just launched the product offerings for the Solana tradings to all Hong Kong retail investors and we do have the plans to provide paper tradings for Solana tradings in a very short time in order to further engage the newcomers to the crypto universe. The last word E means exchange.

Our gateways to connect.

Quick crypto native and also traditional finance and also.

In terms of monetization.

Despite now the monetization will come from the trading itself, but in the long term I think of the ATP.

Speaker #3: Not to mention, there will be more, you know, integrations for our AI capabilities and how to further utilize our AI capabilities in the Web3 segment as well.

Number one we'll save our upstream cost to further enhance our user experience.

Speaker #3: Thirdly, there are the conversions between traditional finance and the crypto-native in terms of the new client referrals, as well as the cross-selling opportunities.

To provide a seamless user experience to our to our clients and the secondly, our Cline.

It will not only be the.

Speaker #3: For instance, a couple of days ago, we just launched the product offerings for the Solana trading to all Hong Kong retail investors.

Retail investor volatile.

We may also to expand our offerings to other peers, our institutional clients as well certainly as you can see a lot of new initiatives mentioned by Hong Kong regulators.

Speaker #3: And we do have the plans to you know provide you know paper tradings for Solana tradings in a very short time in order to further engage the newcomers you know to the crypto universe.

They mentioned aspire initiatives this year, which was quite encouraging.

There will be a lot of new initiatives, new monetization potentials.

Speaker #3: The last word, the E means exchange. As you said, you know we are in the phase two of VATP license application in Hong Kong, and we are doing the feasibility studies for more license applications in other markets.

Such as.

Arthur Chen: As you said, we are in the phase two of VATB license application in Hong Kong and we are doing the feasibility studies for more license applications in other markets. Exchange will definitely be a gateway to connect crypto native and also traditional finance and also in terms of monetizations. Despite now the monetization more comes from the trading itself, but in the long terms, I think VATB will number one, will save our upstream cost to further enhance our user experience to provide a seamless user experience to our clients. Secondly, our client target will not only be the retail investor for ourselves, we may also expand our offerings to other peers or institution clients as well. Thirdly, as you can see, a lot of new initiatives mentioned by Hong Kong regulators. For instance, they mentioned Aspire initiative this year, which was quite encouraging.

The derivative of the stake.

So these are all incremental revenues.

In the in the long term.

Each will benefit from the regulatory push.

Speaker #3: Exchange will definitely be a gateway to connect crypto native and also traditional finance and also you know in terms of monetizations despite now the monetization more comes from the trading itself, but in the long term, I think VATP will, number one, will save our upstream costs to further enhance our user experience to provide a seamless user experience to our clients.

Pushup.

AGL. Thank you Daniel.

And I think your second question.

I'll take your second question on Japan, I think I'm going to share about our understanding of the competitive landscape market dynamics, and then I'm going to talk about what we have done in <unk>. Accordingly, so in terms of the competitive landscape as we all know it's been a pretty steady in market structure or the <unk>.

Last couple of years <unk> consistently have 80% of the market share in terms of retail investors and they have both constructed a very robust ecosystem.

Speaker #3: And secondly, our client target will not only be retail investors for ourselves; we may also expand our offerings to other peers or institutional clients as well.

One stop financial services, and even beyond financial certainly created lots of very sticky very sticky touch points with the end client.

That being said, we think move still has a very unique value proposition, especially for self directed investors and tracked in the U S market, whether it's our pricing or our market data or training experience or our social community and these are all very friendly and super competitive self directed investor.

Speaker #3: Thirdly, you can see a lot of new initiatives mentioned by Hong Kong regulators. For instance, they mentioned the ASPIRE initiative this year, which was quite encouraging.

Arthur Chen: I think there will be a lot of new initiatives, new monetization potentials such as the derivatives, the stakings. So these are all incremental revenues in the long terms which will benefit from the regulatory push up. Thank you.

Speaker #3: I think there will be a lot of new monetization potentials such as you know the derivatives, the stakings, so these are all incremental revenues in the in the long terms which will benefit from the regulatory push up.

So we're thinking there is a real gap in the market for us to fill and on top of that where we have come to realize notwithstanding that shared before is that branding is super important and Japan. It take.

Speaker #3: Thank you. Thanks, Chiao. This is Daniel, and I will take your second question. I'll take your second question on Japan. I think I'm going to first share about our understanding about the competitive landscape, market dynamics, and then I'm going to talk about what we have done in 2Q accordingly.

Daniel Yuan: second question on Japan. I am going to first share our understanding about the competitive landscape, market dynamics, and then I am going to talk about what we have done in Q2 accordingly. In terms of the competitive landscape, as we all know, it has been a pretty steady market structure over the past couple of years. SBI and Rakuten consistently have about 80% of the market share in terms of retail investors, and they have both constructed a very robust ecosystem of one-stop financial services and even beyond financial services and created lots of very sticky touchpoints with the end clients. That being said, we think moomoo still has a very unique value proposition, especially for self-directed investors interested in the U.S. markets, whether it is our pricing or market data or trading experience or our social community. These are all very friendly and super competitive for self-directed investors.

Time to win the trust of the Japan retail investors. So accordingly, we have done lots of branding events, whether it's advertising or hosting events with some of the other very prominent financial institutions organization in Japan and back to what we have done in the second quarter based on these understanding so.

Speaker #3: So in terms of the competitive landscape, as we all know, it's been a pretty steady market structure over the past couple of years. SBI and Rakuten consistently have 80% of the market share in terms of retail investors, and they have both constructed a very robust ecosystem of one-stop financial services and even beyond financial services and created lots of very stucky very touchpoints with the end clients.

We continue to optimize our U S related trading capability and to streamline that investing experience in the second quarter. We allows U S options trading and we have seen that the penetration of U S options as well as the revenue contribution from U S options has been coming up steadily month over month.

Daniel Yuan: We are thinking there is a real gap in the market for us to fill. On top of that, what we have come to realize, and also something we have shared before, is that branding is super important in Japan. It takes time to win the trust of the Japan retail investors. Accordingly, we have done lots of branding events, whether it is advertising or hosting events with some of the other very prominent financial institutions or organizations in Japan. Back to what we have done in the second quarter based on these understandings, we continue to optimize our U.S.-related trading capabilities and to streamline that investing experience. In the second quarter, we launched U.S. options trading, and we have seen that the penetration of U.S. options, as well as the revenue contribution from U.S. options, has been coming up daily over the month.

We also started to support the deposit and the outflow is U S dollars for before our clients need to change that into into Japanese yen. So by doing that we reduce the friction.

Speaker #3: That being said, we think Moomoo still has a very unique value proposition, especially for self-directed investors interested in the US markets, whether it's our pricing or market data, or trading experience, or our social community.

And to the exchange.

We have also seen very high.

Speaker #3: These are all very friendly and super competitive for our self-directed investors. So we're thinking there is a real gap in the market for us to fill.

Engagement and turnover in the second quarter in Japan and in fact, the total train volume in Japan.

Daniel Yuan: We also started to support the deposit and the outflow of U.S. dollars. Before, clients needed to exchange that into Japanese yen. By doing that, we reduce the friction in this currency exchange. We have also seen very high engagement and turnover in the second quarter in Japan. In fact, the total trading volume in Japan went up by over 50% quarter over quarter. We have seen a sequential increase in both the trading turnover of U.S. stocks and Japan stocks. The average client assets as of quarter end also registered double-digit sequential growth. We think these are all super encouraging signs and data points. Going forward, we will continue to optimize our current experience for both U.S. stocks and Japan stocks. In the second quarter, we also launched some AI-related capabilities in Japan.

Why not over by over 50% quarter over quarter, and we have seen a sequential increase in both the trading turnover of U S stocks and stock and the average client assets as of quarter end also registered double digit sequential growth. So we think these are all super encouraging data point and going forward.

Speaker #3: And on top of that, what we have come to realize—and also something we have shared before—is that branding is super important in Japan.

Speaker #3: It takes time to win the trust of the Japanese retail investors. Accordingly, we have done lots of branding events, whether it's advertising or hosting events with some of the other very prominent financial institutions or organizations in Japan.

We will continue to optimize our training experience for both the U S and Japan stock.

Daniel Yuan: What we have seen is that the penetration or adoption rate of AI chatbots is actually the highest in Japan among all of our international markets. The customer satisfaction rate consistently stayed above 90%, which shows that there are a sizable number of self-directed Japanese investors who are interested in doing their own research and use these tools to help them make informed investment decisions. We want to leverage AI, leverage financial technology to continue to lower the barrier of investing through U.S. stocks. We think that there is a growing demand for U.S. stocks for us to cater to. Also, in terms of brand building, we have also done a fair amount. In the second quarter, we partnered with NASDAQ and the Japan Exchange Group to host the MoveFest Japan event.

Speaker #3: And back to what we have done in the second quarter, based on these understandings, so we continue to optimize our US-related trading capabilities and to streamline that investing experience.

And in the second quarter, we also allowance from AI related capabilities in Japan, and what we have seen that but.

The penetration or adoption rate.

Speaker #3: In the second quarter, we launched US options trading, and we have seen that the penetration of US options as well as the revenue contribution from US options has been coming up steadily month over month.

It's actually the highest in Japan, among all of our international market and the customer satisfaction rates are consistently stayed above 90%, which set aside there are sizable number.

Speaker #3: We also started to support the deposit and the outflow of US dollars, so before our clients need to exchange that into Japanese yen. So by doing that, we reduced the friction in this currency exchange.

Self directed Japanese investors, who are interested in doing their own research and help use these tools to help them make informed investment decisions and we wanted to leverage AI leveraged financial technology to continue to lower the barrier of investing for us and we think that there is a growing demand for <unk>.

Daniel Yuan: Over 12,000 retail investors in Tokyo signed up, which we think is a quite sizable crowd. We think that over the past couple of quarters, we have really been able to elevate our brand recognition and trust among the retail investors in Japan. Let me translate some of myself. Next, regarding the Japan issue, I will first share our understanding of the market competition landscape, including market space and product positioning. Then, based on these understandings, I will talk about what we did in Japan in Q2. The competitive landscape in Japan is relatively stable.

Speaker #3: We have also seen very high engagement and turnover in the second quarter in Japan, and in fact, the total trade volume in Japan went up by over 50% quarter over quarter.

Docks for us to cater to.

And also in terms of brand building, we've also done.

Daniel Yuan: In the past few years, as everyone knows, SBI and Rakuten have occupied 80% of the retail investor market share. They have also built a one-stop financial service ecosystem, including other lifestyle services, and have many touchpoints with customers. However, we still believe that moomoo has a very unique value proposition, especially for active self-directed traders who are willing to invest in overseas stocks. Whether it is our pricing, market conditions, information, trading experience, or community, we believe they are all very attractive to active self-directed traders. In addition, we have repeatedly mentioned in the past that building a brand in Japan is very important, as it can enhance Japanese users' trust in us. In the past few quarters, we have continuously enhanced our brand awareness and trust through advertising, sponsorships, and other co-branded activities. Based on these understandings, we also did a lot of work in Japan in Q2.

A fair amount in the second quarter, we partnered with NASDAQ and the Japan stock exchange to host the move outs event.

Speaker #3: And we have seen a sequential increase in both the trading turnover of U.S. stocks and Japanese stocks. Additionally, the average client assets, as of quarter end, also registered double-digit sequential growth.

Over 12000 retail investors in Tokyo signed up which is which we think is quite sizable crowd and we think that over the past couple of quarters, we've really been able to elevate our brand recognition and trust among the retail investors in Japan, and let me translate for myself.

Speaker #3: So, we think these are all super encouraging signs and data points. Going forward, we'll continue to optimize our trading experience for both U.S. stocks and Japan stocks.

Speaker #3: And in the second quarter, we also launched some AI-related capabilities in Japan. What we have seen is that the penetration or adoption rate of AI chatbots is actually the highest in Japan among all of our international markets.

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Daniel Yuan: First, we continued to refine our U.S. stock-related capabilities and optimized the customer trading experience. In April, we launched U.S. stock options trading. The penetration rate of options trading, including the contribution of trading revenue, has been steadily increasing month-on-month. We also supported customers in direct deposits and withdrawals in U.S. dollars, which can reduce the exchange losses incurred by customers when converting between U.S. dollars and Japanese yen. We are very happy to see that Japanese customers' trading activity in Q2 was very high. The total trading volume increased by 50% quarter-on-quarter compared to Q1. In addition, the turnover rates of both U.S. stocks and Japanese stocks showed a quarter-on-quarter increase. In terms of AUM, the assets under management also achieved double-digit growth quarter-on-quarter, so we think these are all very good signals. In the future, we will continue to optimize and supplement our product capabilities related to U.S.

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Speaker #3: And the customer satisfaction rate consistently stayed above 90%. Which shows that there are a sizable number of self-directed Japanese investors who are interested in doing their own research and help and use these tools to help them make informed investment decisions.

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Speaker #3: And we want to leverage AI-driven financial technology to continue to lower the barrier of investing through U.S. stocks. We believe there is a growing demand for U.S. stocks for us to cater to.

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Daniel Yuan: stocks and Japanese stocks. In Q2, we also launched AI-related functions in Japan. After a period of launch, we found that the penetration rate of Japanese users using the AI Q&A assistant is actually the highest among all our overseas markets, and customer satisfaction has consistently remained at a high level of over 90%. We believe that there are many investors in Japan who have a strong willingness to invest independently, and they have a strong motivation to learn and are willing to actively use these tools to help them make better investment decisions. We hope to leverage AI, including the strength of other financial technologies, to continuously lower the threshold for U.S. stock investment and cater to the continuously increasing demand for U.S. stock investment that we have discovered locally. In terms of brand building, we have also made many improvements.

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Speaker #3: And also in terms of brand building, we've done a fair amount in the second quarter. We partnered with Nasdaq and the Japan Stock Exchange to host the Moofest event.

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Speaker #3: Over 12,000 retail investors in Tokyo signed up, which we think is a quite sizable crowd. And we think that over the past couple of quarters, we've really been able to elevate our brand recognition and trust among the retail investors in Japan.

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Speaker #3: And let me translate for myself. Here, Chiao, why don't you do the win, Chiao. Just for the chance, 我们分享一下我们对于这个市场竞争格局, 包括市场空间, 包括产品定位的一些理解。然后接着可能基于这些理解, 我会讲一下我们的二季度在日本做了哪一些事情。那在日本的这个竞争格局, 其实相对是比较稳定的。过去几年, 其实大家都知道SBI和乐天两家占据了80%的零售投资者的这个市场份额, 然后他们也构建了一站式的这个金融服务, 包括其他的一些生活类服务的这个生态体系。然后跟客户有非常多的这个触点。但是我们依然觉得这个Moomoo有非常独特的这个价值主张, 尤其是对于有投资海外股票意愿的活跃自主交易者来说。无论是我们的定价, 还是我们的市场行情, 还是我们的资讯, 还是交易体验, 包括社区等等, 我们觉得对于这个活跃自主交易者来说, 都是非常有吸引力的。那另外过去我们也反复提到, 就是在日本构建这个品牌是非常重要的。这样能提升这个日本用户对于我们的这个信任度。那过去几个季度, 其实我们也不断通过这个广告, 然后包括这些赞助以及其他的一些联名的活动来提升我们品牌的知名度和信任度。那基于这些理解, 我们在这个二季度在日本也做了很多工作。那首先我们也是持续打磨了美股相关的能力, 并优化了客户的这个交易体验。在这个四月份, 我们上线了美股期权的这个交易。期权交易的这个渗透率, 包括交易收入的贡献, 每个月都在环比的这个稳定的提升。那我们也支持了客户通过美元直接的出入金, 这样可以减少这个客户美元和日元之间转化所产生的这个汇兑损失。我们非常这个开心的看到, 其实日本客户在二季度的交易活跃度是非常高的。那总的交易量环比一季度其实增长了50%。另外这个美股和日股的换手率都出现了这个环比的增长。那在AUM方面, 库军的资产环比也实现了这个双位数的增长。所以我们觉得都是一些非常好的这些信号。未来我们也会持续去优化和补充在美股和日股相关的这个产品能力。我们在二季度在日本也上线了AI相关的这个功能。那上线一段时间后, 我们其实发现日本用户使用这个AI问答助手的这个渗透率, 在我们海外所有市场中其实是最高的。而且客户的满意度也一直维持在90%以上的这个高水平。那我们觉得日本是有很多有这个自主投资意愿的这个投资者, 然后他们有很强的这个学习的动力, 也愿意去积极的通过这个工具来辅助他们做出更好的这个投资决策。我们是希望能借助AI, 包括其他金融科技的实力, 能够不断降低美股投资的门槛, 也迎合我们发现的在当地不断增加的对于美股投资的这个需求。在品牌建设方面, 我们其实也取得了很多的这个提升。二季度我们和纳斯达克以及日本交易所合作举办了这个Moofest的投资展览会, 也吸引了超过1万2千名这个东京的零售投资者报名参加。我们觉得是一个非常成功的活动。这个活动也进一步深化了日本投资者对于我们品牌的认知与信任。 Thank you.

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Daniel Yuan: In Q2, we collaborated with NASDAQ and the Japan Exchange Group to host the MoveFest Japan exhibition, which attracted over 12,000 retail investors from Tokyo to sign up. We believe it was a very successful event, and this event further deepened Japanese investors' awareness and trust in our brand. Thank you.

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Leaf Hua Li: 谢谢, 谢谢, 非常详细.

Speaker #5: 谢谢, 谢谢, 非常详细。

Operator: Thank you. Just a moment for our next question, please. Next, we have Yu Fan from CICC. Please go ahead.

Speaker #2: Thank you. Just a moment for our next question, please. Next, we have Yu Fan from CICC. Please go ahead.

And second question is about the U S markets.

So you saw it its girls achieve these.

So would you. Please show more data and also with the plan and targets for the U S market. Thank you.

Yu Fan: 好的, 感谢管理层给我这个提问的机会。我是中金公司的分析师樊呦, 那也是恭喜公司的业绩其实再次创了新高。那我这边的话有两个问题想要请教一下管理层。首先第一个的话是想请管理层看能不能分享一下关于三季度以来咱们看到的, 包括这个获客入金, 还有包括这个用户的交易活跃度等等方面的一些趋势, 能不能给更多的一些 color, 这是第一个问题。第二个问题的话是想要请教一下关于美国市场, 因为我们看到其实美国市场今年以来的话也有一些这个新的边际上的变化, 想请教一下可能有没有一些更多数据的分享, 然后包括对于美国这个市场后续的一些这个考虑, 还有包括打法。那我这边快速翻译一下。Thanks management for taking my question. This is Yoyo Fan from CICC, and I have two questions for you. The first one is, can you please give more color on the third quarter regarding the client acquisition, the net asset inflow, and also the trading volume? The second question is about the U.S. market. We see solid growth achieved this year. So would you please share more data and also with the plan and target for the U.S. market? Thank you.

Speaker #6: 好的, 感谢管理层给我这个提问的机会。我是中英公司的分析师樊优, 那也是恭喜公司的业绩其实再次创了新高。那我这边的话有两个问题想要请教一下管理层。首先第一个的话是想请管理层看能不能分享一下关于三季度以来咱们看到的, 包括这个获客、入金, 还有包括这个用户的交易活跃度等等方面的一些趋势, 能不能给更多的一些cover。这是第一个问题。然后第二个问题的话是想要请教一下关于美国市场, 因为我们看到其实美国市场今年以来的话也有一些这个新的边际上的变化, 想请教一下可能有没有一些更多数据的分享, 然后包括对于美国这个市场后续的一些这个考虑, 还有包括打法。那我这边快速翻译一下, thanks management for taking my question. This is Yoyo Fan from CICC, and I have two questions here.

Well. Thank you for these two questions. This is Daniel I'll take both of these questions first of all in terms of the third quarter quarter to date trend based on the run rate, we expect a steady Q on Q.

Net net new.

Ending accounts.

Steady compared to last quarter.

We've also seen a positive mark to market impact.

With no thats, an inflow should continue to push.

Total client AUM and fee growth sequentially.

<unk> also seen very active trading behaviors and based on the current run rate if the market sentiment is able to persist. We think there is there is a chance that our trading volume could have another Q on Q increase on top of the very high base in the second quarter.

Speaker #6: The first one is, can you please give more color on the third quarter regarding the client acquisitions, the net asset inflow, and also the trading volume?

In terms of our development in the U S market a couple of data points, we could sure well first of all we've really seen the positive flywheel. Thanks to the continued product development and strengthening brand equity.

Speaker #6: And the second question is about the U.S. market. We see solid growth achieved this year, so would you please share more data and also the plan and target for the U.S. market?

Net new adds in terms of funded accounts in the U S contribute continue to contribute very meaningfully to the group and in the second quarter. We've also seen the number of options traders as well as the total number of options contracts traded reached historic high.

Speaker #6: Thank you.

Daniel Yuan: Well, thank you for these two questions. This is Daniel Yuan. I will take both of these questions. First of all, in terms of the Q3 quarter-to-date trend, based on the run rate, we expect a steady Q1 Q2 net new funded accounts. So it is pretty steady compared to the last quarter. We have also seen a positive market impact, which coupled with net asset inflow should continue to push total client AUM inflow sequentially. We have also seen very active trading behaviors.

Speaker #3: Well, thank you for these two questions. This is Daniel. I'll take both of these questions. First of all, in terms of the third quarter quarter-to-date trend, based on the run rate, we expect a steady Q1Q net new funded accounts, so it's pretty steady compared to the last quarter.

In fact, both numbers registered a five consecutive.

Quarters.

Sequential increase so we think these are super encouraging and in the second quarter.

Speaker #3: We've also seen a positive market-to-market impact, which, coupled with net asset inflow, should continue to push total client AUM to grow sequentially. We've also seen very active trading behaviors, and based on the current run rate, if the market sentiment is able to persist, we think there is a chance that our trading volume could have another Q/Q increase on top of the very high base in the second quarter.

We said earlier, we strive this partnership with the New York, Matt and we've been deeply embedded in this ecosystem of New York Mats.

We think this strategic partnership helped us elevate our brand image among the team tens of millions of fans in the U S. But also we really get our name out there internationally. Thanks to of the sports teams international input.

Daniel Yuan: Based on the current run rate, if the market sentiment is able to persist, we think there is a chance that our trading volume could have another Q1/Q2 increase on top of the very high base in the second quarter. In terms of our development in the US market, a couple of data points we could share. First of all, we have really seen the positive flywheel thanks to the continued product development and our strengthening brand equity. The net new adds in terms of funded accounts in the US continue to contribute very meaningfully to the group. In the second quarter, we have also seen the number of options traders, as well as the total number of options contracts traded, reached a historic high. In fact, both numbers registered five consecutive quarters of sequential increase. We think these are super encouraging.

And the five building our brands we've also.

Speaker #3: And in terms of our development in the U.S. market, a couple of data points we could share: well, first of all, we've really seen the positive flywheels thanks to the continued product development and the strengthening brand equity.

Iterate on our product.

We launched crypto currency trading and most states in the U S and we now support over 30 mainstream crypto trading Paris, and we've seen a continuous increase in adoption rate among our U S. Clients. We've also launched new AI, including AI chat box.

Speaker #3: The net new ads in terms of funded accounts in the US continue to contribute very meaningfully to the group. And in the second quarter, we've also seen the number of options traders as well as the total number of options contracts traded reached historic high.

Empowered stock investment tools.

And lots of technical charts and stock related fundamental data.

Also in the future we plan to launch kind of AI stock screeners to help our investors better through the thousands of stock.

So, yes lots of product innovation as well and overall, we are very optimistic about the growth prospects in the U S market and.

Daniel Yuan: In the second quarter, as we shared earlier, we struck this partnership with the New York Mets, and we have been deeply embedded in this ecosystem of New York Mets. We think this strategic partnership helped us elevate our brand image amongst the team's tens of millions of fans in the US, but also we really get our name out there internationally thanks to the sports team's international influence. Besides building our brand, we have also iterated on our product. In June, we launched cryptocurrency trading in most states in the US, and we now support over 30 mainstream crypto trading pairs. We have seen a continuous increase in adoption rate among our US clients. We have also launched Moomoo AI, including AI chatbots, AI-empowered stock investment tools, and lots of technical charts and stock-related fundamental data.

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Daniel Yuan: We also, in the future, plan to launch AI stock screeners to help our investors better sift through the thousands of stocks. Lots of product innovation as well. Overall, we are very optimistic about the growth back in the US market. Let me translate. 首先关于我们三季度目前为止的一些各方面的数据的情况, 以目前的run rate来看的话, 这个新增这个有线客户, 环比Q2应该是保持比较平稳的这个水平。那这个市场, 这个market to market的影响是目前为止是正向的, 然后叠加了三季度目前为止的这个净入金, 应该能带动这个总的客户资产环比有进一步的上升。那同时客户的交易情绪是很高涨的, 然后以目前的水平来看, 如果市场的行情能够延续, 我们有机会交易量能够在二Q的高基数上会有进一步的这个小幅的环比增长。那关于在美国市场的这个进展, 呃, 我们在美国持续的品牌力的提升以及产品能力的提升带来了业务增长的一个正向的循环。在二季度, 美国持续为集团贡献了非常meaningful的这个净增的有资产的客户。那同时二季度, 呃, 在美国市场的期权交易人数和期权交易张数都创下了历史新高, 而且已经连续五个季度实现了环比的增长。那二季度在品牌方面, 其实前面也提到了我们跟这个纽约的这个大都会的这个对达成了深度的合作, 那我们也全方位融入了纽约这个Mets的这个生态赛事体系吧。这一战略合作不仅能够让我们在这个千万级的在美国的这个球迷群体中提升了品牌知名度, 那同时我们也借助了Mets的全球的影响力, 把我们的品牌辐射到了其他的一些海外市场。那除了在这个品牌力的提升之外, 我们在这个产品能力上也持续的在提升。在6月份, 我们在美国的大部分州上线了加密货币交易, 目前支持超过30种主流加密货币现货交易对, 呃, 在存量客户的这个交易渗透率也在逐步的提升。那我们二季度也在美国上线了这个Moomoo AI的功能, 包括AI的问答助手, 呃, 股票趋势的分析, 呃, 其实K线形态一些技术分析, 啊, 包括关键的基本面数据的摘要等等。后续我们也计划去上线AI股票的筛选器, 能够帮助客户更好的去定位他们的这个投资标的。总的来说, 我们觉得我们对美国之后的增长保持了很很强的信心。 Thank you.

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Thank you Juan <unk>. Our next question please.

Next we have Charles so from UBS. Please go ahead.

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Two questions. So first can you maybe you can give us or would it be more information about the regional mix of the client acquisition in the second quarter and also we noticed that on a Q on Q basis, Theres, a sequential slowdown for the for the customer acquisition. Meanwhile, also noticed some news reports about more stringent onboarding after me.

Operator: 你的非常感谢. Thank you. Thank you. One moment for our next question, please. Next, we have Charles Zhou from UBS. Please go ahead.

And Chinese clients in Hong Kong in June so what will be the potential impact to your client acquisition looking forward and also any potential change to your full year guidance of 800000. Thank you.

Daniel Yuan: 好的，感谢给我这个提问的机会哈。首先也是恭喜管理层取得了非常不错的业绩。其实我的几个问题刚才已经被问到了，所以我可能就还有两个问题问一下吧。第一呢，我想问一下我们Q2的这个获客，就是各地的一个组成能不能跟我们分享一下。然后另外呢，我们也注意到就是Q2的我们这个获客环比呢，其实是有一个下跌的。想问一下这个是怎么一个原因，因为我们看到整个市场情绪还不错，特别是我们也注意到一些新闻媒体报道，就是关于这个中国大陆客户在 Hong Kong 开户有一个更加严格的这个执行。我不知道这个是不是其中一个原因。然后呢，我们展望未来，我们的这个获客的情况应该怎么来去考虑，然后全年我们的这个80万的这个指引是不是会发生一些变化。 So I have two questions. First, can you maybe give us a little bit more information about the regional mix of the client acquisition in Q2? Also, we noticed that, on a Q1/Q2 basis, there is a sequential slowdown for the client, for the customer acquisition. Meanwhile, we also noticed some news report about more stringent onboarding of the mainland Chinese clients in Hong Kong in June. So what will be the potential impact to your client acquisition looking forward? Also, any potential change to your full year guidance of 800,000? Thank you.

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Leaf Hua Li: 好的, Charles。我来回答一下你这两个问题。一个从这个 Q2 的 breakdown 来看, 我们的香港市场跟 Malaysia 市场, 这两个市场都保持了一个非常好的获客势头。所以这两个市场合计贡献了超过一半以上的新增有资产客户。就像前面 Daniel Yuan 提到的, Hong Kong 已经连续三个季度贡献了最多的有资产客户。那么其他的一些其余的客户增长呢, 主要是来自于 Singapore, U.S. 和 Japan 市场。整个上半年因为截止到 Q2, 我们整个已经完成了 460,000 的净增有资产客户。相比今年全年我们给到市场的 800,000 目标来看, 是符合甚至是快于这个时间进度的。从目前来看, 我们还是非常有信心能够完成我们今年全年的目标。所以目前我们没有对指引有任何调整计划。 从你刚才讲到的整个 Q2 的获客数量相比 Q1 一个非常高的基数, 环比是有小幅下降。但是从绝对增长数量来看, 在历史上依然是处于一个非常高的位置。从具体的一些原因来看, 确实整个 Q1 末 3 月份开始到 4 月头的贸易战, 虽然对于我们现有客户的交易是起到了一个正面的帮助。但是 3、4 月份的影响确实对于我们的不同市场的一些新获客, 在 4 月份的时候是受到了一些负面影响。你刚才讲到的, 比如说有关 Hong Kong 这边的一些监管方面或者对于获客的一些要求, 有一些新的更严格的一些要求, 整体对于我们整个获客我们并没有看到非常显著的影响。所以向前去看, 无论是 Hong Kong, 包括我们其他市场在 Q3 的一些获客增长方面, 我个人还是保持一个谨慎乐观。我简单翻译一下。 In terms of the new clients, new paying clients, fund accounts we acquired in the Q2, Hong Kong and Malaysia collective basis account for over 50% of the new client acquisitions in the Q2. The remaining part was mainly come from Singapore, U.S., and also Japan. In total for the first half of this year, we have already achieved 460,000 new fund accounts which accounts for over 50% of our annual 800,000 new fund accounts targets. We remain very confident to achieve our full year target nowadays.

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Thank you Justin next question please.

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Next we have unless you from.

The RSA Securities. Please go ahead.

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Leaf Hua Li: We do not see any meaningful implications for the new regulations in terms of the new client onboardings in Hong Kong. So far, all the new clients acquisition across different markets remain very healthy and robust. So I personally feel very confident to achieve our full year target. Thank you.

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In terms of the uh, new clients, new paying client, uh, fund accounts. We are quite in the second quarter Hong Kong and the and the Malaysia Collective basis accounts for over 50% of the new client, uh, Acquisitions, uh, in the in the second quarter, send the remaining part was mainly come from, Singapore us. Uh, and also, uh, Japan. Uh, in total for the first half of this year, we have already achieved, uh, 460k, uh, new fund.com, uh, which accounts for over 50% of our annual, uh, 800k. Uh, new account accounts targets. Uh, we remains very confident, uh, to achieve our full year Target, uh, nowadays and there. We do not see any meaningful implications, uh, for the, you know, new regulations. Uh, in terms of, you know, the uh, the new client on boarding in Hong Kong. Uh, so far all the, you know, uh, new clients, acquisition across different markets,

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Hi, Bob.

Daniel Yuan: 好的, 谢谢。

I am confident that we remain very healthy and robust. Therefore, I personally am still very confident in our ability to achieve our full year target. Thank you.

Yes Nathan.

Operator: Thank you. Just a moment for our next question, please. Next, we have Emma Xu from BRFA Securities. Please go ahead.

Thank you to the Hypo, taking you can't Jason Zander.

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Thank you. Just a moment for our next question, please.

Yes.

Next, we have Emma stew from.

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Arthur Chen: 谢谢给我这个提问的机会。恭喜公司在此取得非常强劲的业绩。我这边也有两个问题。一个是想问一下利息收入的，其实这个 Q2 的利息收入还是挺强于预期的。刚刚管理层在电话会上，在开头也讲到说这个 Q2 的话是那个利息收入这边主要是融券借券业务这边上涨，还有包括这个跟存款啊，跟闲置资金相关的这方面的利息收入也有所上涨。但是 Q2 我们同时也有看到有个 HIBOR 的大跌，对吧？就是想问一下，就是说为什么 Q2 好像并没有看到 HIBOR 的大跌，对 Q2 的利息收入有明显的影响。但是您刚刚说在这个利息支出端的话，反而融券借券业务的利息支出下降了，然后这个 margin financing 相关的利息支出也因为 HIBOR 的下跌了下降。那现在我们看到那个 Q3 的话， HIBOR 最近几天其实是有明显的反弹的，但是相比于五月初还是五月初的水平还是有明显的下降。那这些因素会对我们 Q3 的净利息收入有怎样的一个影响？ 第二个问题是想问一下那个其他收入这块的，这块我们发现就是最近几个季度增长也非常强劲，就是 Q2 环比增长了 40%，然后同比的话增长了 176%。你们也提到了说这个主要是跟这个基金分销业务相关，还有包括这个汇兑的相关收入也增长非常强劲。那这块虽然占我们总收入的比重目前只有 8%，但未来的话我们看这块是否还是能够保持一个比较快的增速，然后未来对这个集团的总收入会有一个更大的贡献。我翻译一下我的两个问题。 So the first question is about the interest income. It's actually stronger, much stronger than expected. You mentioned that the gross interest income increased mainly due to the increased income from the stock borrowing and lending business, as well as interest income from idle cash. But in the second quarter, HIBOR dropped a lot. It seems it doesn't impact your interest income a lot. Could you tell us what's the reason behind? But on the other hand, your interest expense declined due to a lower cost related to the margin to the stock borrowing and lending business, as well as a lower HIBOR.

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42% quarter over quarter, and 176% year over year.

You mentioned that it is mainly related to your power distribution business and FX income business.

So could you tell us do you expect could you tell us what drive that strong girls to high end do you expect that your strong momentum continued in the future. Thank you.

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So, the first question is about the interest income. Um, it's actually stronger, much stronger than expected. Uh, so you mentioned that the growth in interest income increased mainly due to the increased income from the stock borrowing and lending business, as well as interest income from idle cash. Um, but in Q2, hyper dropped a lot. It seems it doesn't impact your interest income a lot. So could you tell us what's the reason behind?

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Arthur Chen: So why there is a divergence between the trend of the gross interest income and interest expense? What would be the trend in the third quarter for your net interest income? The second question is about other income, which grew very strongly in the second quarter, up 42% quarter over quarter and 176% year over year. You mentioned that it is mainly related to your founder's distribution business and FX income business. Could you tell us what drives the strong growth behind, and do you expect such strong momentum to continue in the future? Thank you.

The CAGR when we were controlling hiccup with NGA Gucci Azuela C.

To the degree we should say such a.

Well the nickel types of idle cash.

But on the other hand, your interest uh, expense decline, uh, due to uh lower uh uh cost related to the margin, uh uh uh to the uh, stock borrowing and lending business as well as, uh, lower high ball. So why there is a Divergence between the trend of the growth interest income and interest expense? Uh and what would be the trend in the third quarter for your net interest income? Uh at the second question is about uh other income which grew very strongly in second quarter. Uh uh for the

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Leaf Hua Li: 好的, Emma, 我来回答一下这两个问题。第一个是有关这个利息收入的。那虽然在 Q2 我们的能看到香港的这个利率环境, HIBOR是有一个比较明显的一个下降。但呢, 因为整体 Q2 开始整个市场的多空分歧相对是有一个比较明显的一个加剧的。所以呢, 整体我们在一些 hard to borrow 的一些股票方面其实获得了非常好的一个借券的一个收入在这个里面。这是第一个原因。那么第二个, 整体的这个市场因为波动增加, 整体我们看到客户有更多的一些止盈, 提高他的现金的, 提高他的现金的这个仓位的这样的一个表现。那叠加我们有更多的一些客户的一些入金。所以呢, 虽然利率这个利率是在下降。但是我们能够产生 idle cash 的这个金额。就是另外一个驱动的因子是有一个非常好的一个增长。所以第二个因子已经把第一个因子所有负面的影响已经全部抵消掉了。所以这个是这两个原因。那这是有关这个利息收入的。那第二个就是我们的这个其他收入呢, 在今年 Q1 跟 Q2 相比, 去年都有一个比较好的一个增长, 主要是两方面的原因。一个就是你刚才提到的财富管理相应的一些这个收入手续费的一些分销。包括汇兑的这一些收入。这些收入我相信在未来随着我们的财富管理的业务的进一步的增加, 以及我们整个客户资产的一个增加, 包括市场的一个活跃度能够持续的话, 我相信这一些收入都是会有一个都是可以持续的。那么除了这两个以外呢, 今年还会我们还有一块是这个我们的这个天津银行提供了一些相应的一些技术的一些输出的一些服务。所以这里呢, 也会有一个技术服务带来的一个增量的一个影响在这里。那我简单翻一下。For the first question regarding the interest income, despite we see a very meaningful HIBOR declines, which may have some certain negative implications to our interest income. But thanks to some policy factors, number one is given the markets become more volatile and the people, the investors take different opinions, then the interest for the short on the short side has increased a lot in the second in the second quarter. In particular, we got a lot of benefit from some hard to borrow stocks from the securities lendings. Secondly is we see more clients to lock in their profit given the markets become more volatile and they want to take some money off the tables.

2% quarter of a quarter and 176% year-over-year. Um, you mentioned that it is mainly related to your file distribution business and FX income business. Um, so could you, uh, tell us do you expect, uh, to could you tell us what Drive the strong Girls behind, and do you expect such strong more than 10 to continue in the future? Thank you.

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Within the franchise for the first question is regarding the interest income despite that we see.

A very meaningful.

Meaningful highball declines, which may have some certain negative implications to our interest income.

Okay.

But thanks to some positive factors number one is given the markets become more volatile and the people the industrial take different opinions.

And then the.

The interest for the short on the short side has increased a lot in the second in the second quarter in particular, we got a lot of benefit from some hospitals stock.

From the Securities lending secondly is we see more clients to locking their profit given the markets become more volatile and that they want to.

Talks to take some money off the tables concept.

Consequently, the cash positions within their portfolios increased alot therefore.

These benefit.

Are they fully offset the net negative.

Implications from the yield and also in the second in the third quarter. So far we see a little bit rebound in the high <unk> and at the same time, we also see the cash positions while clients contained.

To be maintaining a relatively high levels and also we see a very strong client asset inflow as well so.

uh,

Compared with the second quarter I think the interest income in the third quarter the momentum will continue.

Then for the second question regarding the other incomes.

You are right, we got some benefits from the FX and also.

For the first questions regarding the interest income. Uh, despite we see uh, uh, a very uh, you know, meaningful hypo declines, uh, which may have some certain negative implications uh, to our interest income. Uh, but uh, thanks to some policy factors. Number 1 is given the markets become more volatiles and the people uh,

Demand in both fees arising from our wealth management products and strongly believes as these two.

Revenue streams can continue in line with our expansions.

Our wealth management products.

Also if the market continues to be choppy actually there will be more consequent demand for the FX.

Change so besides these two normal path also we increase that we recall certain.

Leaf Hua Li: Consequently, the cash positions within their portfolios increase a lot. Therefore, these benefits actually fully offset the negative implications from the yield. Also in the Q3 so far, we see a little bit rebound in the HIBORs. At the same time, we also see the cash positions from clients continue to be maintaining at relatively high levels. Also we see a very strong client asset inflow as well. So compared with the Q2, I think the interest income in the Q3, the momentum will continue. Then for the second question regarding the other incomes, you are right. We got some benefits from the FX and also the management fees arising from our wealth management products. I strongly believe that these two revenue streams can continue in line with our expansions for our wealth management products.

Technology service fee incomes from our technology expense.

Service.

Provided by <unk> bank in the second quarter. Thank you.

Investor, take different opinions, uh, then the the interest, uh, for the short, on the short side has increased a lot in the second, in the second quarter in particular, we got a lot of benefits from some how, how to borrow stocks, uh, for, uh, from the security standings. Secondly, is we see more clients to locking their profit? Uh, given the markets become more volatile, and they want to, uh, you know, talk the, take some money off, the tables. Uh, consequently uh, the cash positions within their portfolios, increase a lot therefore uh, you know these benefits, uh, actually fully off.

Thank you very helpful.

Thank you.

Thank you for the questions I will now pass back to Daniel for closing remarks.

Thank you for all the questions I will now pass back to Daniel for closing remarks.

That concludes our call today on behalf of the <unk> management team I would like to thank you for joining us today.

Any further questions. Please don't hesitate to contact me or any of our Investor Relations representative Thank you and goodbye.

This concludes today's conference call. Thank you for participating you may now disconnect.

Leaf Hua Li: Also if the market continues to be choppy, actually there will be more consequence demand for the FX exchange. So besides these two normal parts, also we increase, we record certain technology service fee incomes from our technology expansion, service provided by Elstar Bank in the Q2 as well. Thank you.

Set, uh, the negative implications from the yield and also in the second uh, in the third quarter so far. Uh, we see, uh, a little bit, you know, rebound, uh, in the high volts. And, uh, at the same time we also see the the cash positions for our clients contain, uh, continue to be maintaining a relatively high levels. And also we see a very strong client as an inflow as well. Uh, so uh, you know, compared with the second quarter, I think the interest income uh in the third quarter, the momentum will continue. Uh, then for the second question, regarding the uh, other incomes, uh, you are right? Uh, we we got some benefits, you know, from the FX and also, uh, you know, the management fees arising from our wealth management products. And I strongly believe that these 2 uh, you know, revenue streams can continue in line with our expansions uh for our Waste Management products. Uh and also if the market continued to be choppy actually, uh there will be more consequence. Uh, demand.

For the FX, uh, you know, exchange. So besides these 2 normal paths, also, we increase, uh, we record certain, uh, you know, technology service, we incomes uh, from our technology expansion. Uh, you know, uh Service, uh, you know, provide by are Bank uh in the second quarter as well. Thank you.

Arthur Chen: Thank you. Very helpful.

Operator: Thank you. Thank you for all the questions. I will now pass back to Daniel Yuan for closing remarks. Thank you for all the questions. I will now pass back to Daniel Yuan for closing remarks.

Thank you very helpful.

Thank you. Thank you for all the questions. I will now pass back to Daniel for closing remarks.

Operator: 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.

Thank you for all the questions. I will now pass back to Daniel for closing remarks.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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.

This concludes today's conference call. Thank you for participating. You may now disconnect.