Tech-driven online brokerage company Futu Holdings Limited (NASDAQ: FUTU) Thursday published its unaudited financial report for the third quarter ended Sept. 30, showing soaring gross profit and surging non-GAAP adjusted net income.
The fintech company in the last quarter generated revenues of HK$946.2 million, a 272.1% increase year-over-year and total gross profit of HK$764.1 million, a surge of 314.1% compared to the same period in 2019. Net income for the quarter was up as much as 18 times year-on-year while non-GAAP adjusted net income up 16 times year-on-year.
As a fully digitalized wealth management platform, the total client asset on Futu surged HK$200.9 billion, increasing 177.8% compared to the same period last year.
The number of paying clients increased 136.5% year-on-year to 418,089 and registered clients rose 79.7% year-over-year up to 1,173,242. “Net paying client addition was approximately 115,000,” said Leaf Hua Li, Futu’s Chairman and CEO.
The company also reported a paying client retention rate of over 98% for the 7th consecutive quarter.
Additionally, the total user number of Futu climbed to 10.4 million, an increase of 52.2%.
“Our China mainland and Hong Kong paying clients both experienced triple-digit growth in the quarter, driven by a number of industry tailwinds, including continued market volatility and the wave of high-profile Hong Kong IPOs of Chinese companies, especially in the technology, biotech and property management sectors,” Li added.
Established in 2009, the brokerage company is still expanding swiftly, with the trading volume over the last quarter surpassing the HK$1 trillion milestone, an incredible 381.1% growth.
Only during the third quarter, six IPOs recorded over HK$10 billion subscription respectively on Futu, including the U.S. IPOs of EV maker XPeng Motors and real estate specialist Beike, as well as Hong Kong IPOs of bottled water company Nongfu Spring and software product developer Ming Yuan Cloud.
As a broker of Ant Group, whose dual-IPO was halted on Nov. 3 in Shanghai and Hong Kong, Futu announced to refund all the application fees, brokerage monies, and interests at the rate when funds were on hold for the anticipated IPO.
“In the third quarter, we completed our US$314 million follow-on offering. The offering was met with significant interest from both long-only investors and hedge funds, with the book oversubscribed multiple times. After we enhanced our capital base, we were able to support a much larger margin financing balance,” said Arthur Yu Chen, Futu’s Chief Financial Officer.