Futu Holdings Limited

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

Thanks, operator. And thank you for joining us today to discuss our fourth quarter and full year 2025 earnings results. Joining me on the call today are Mr. Lei Fle, Chairman and Chief Executive Officer, Arthur Chen, Chief Financial Officer, and Robin Xu, Senior Vice President. As a reminder, today's call may include four looking statements, which represent the company's belief regarding future events. which by their nature are not certain and are outside of the company's control. Forward-looking statements involving hearing 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. With that, I will now turn the call over to Leif. Leif will make his comments in Chinese and I will translate.

Thank you for attending today's conference. In the year 2025, our growth of our customers will continue to grow. Our competitive asset customers will exceed 950,000 over the whole year, and we will lead by 19% in the beginning of the year. Our total number of asset customers will reach 3.4 million, and we will increase by 40%. We have seen great growth potential in the market and new markets. So we decided to set our competitive asset customer leads in 2026 as 800,000. Thank you all for joining our earnings call today.

In 2025, we delivered another year of strong client acquisition, adding more than 950,000 NENU funded accounts and surpassing our full-year guidance by 19%. Total funded accounts reached around 3.4 million, a 40% year-over-year. We remain confident in our ability to acquire 800,000 NENU funded accounts in 2026 supported by strong bottom-up growth opportunities across both our established markets and newer ones.

In 2025, the growth of all market customers will remain strong, with Hong Kong and Malaysia making the biggest contribution. The Hong Kong market continues to consolidate its leading position on the basis of a high market share rate. All-year-round competitive real estate customers will achieve the same growth of high-profile numbers. The market share of Moomoo in Malaysia will also significantly increase. With strong product power, Indeed, the robust growth in funded accounts in 2025 was broad-based,

driven primarily by solid client additions from Hong Kong and Malaysia. In 2025, net new funded accounts in Hong Kong recorded high double-digit year-over-year increase, as we continue to extend our market leadership on top of a high market share. Significant share gain was also observed in Malaysia, and we expect this momentum to continue given our competitive product offerings and growing brand trust. In Japan, cumulative app downloads as of November last year crossed 2 million, further solidifying our position as the number one foreign securities firm.

Moomoo was also the most downloaded trading app in Australia in 2025. In the fourth quarter, we added roughly 230,000 NU-funded accounts,

down 8% quarter-of-a-quarter, but up 9% year-over-year. While client growth in Hong Kong moderated sequentially following a sharp downturn in the local stock market, net new funded accounts in Japan and Malaysia recorded double-digit sequential growth, underpinned by strong client interest in U.S. stock trading and our superior U.S. stock offerings. In the U.S., we rolled out another round of offline marketing campaigns highlighting key features for active traders, During the quarter, the number of option contracts traded, stock, and crypto trading volume in the U.S. market all posted double-digit sequential growth.

In the fourth quarter, the entry rate remained strong, but the drop in the market value of single-customer Hong Kong shares caused a certain negative impact on the overall customer asset. As of the end of the quarter, the total customer asset reached HKD123 trillion, which increased by 66% in the same ratio, and fell to a basic balance. In the Hong Kong and Singapore markets, high-end customers The contribution ratio of the entry fund continues to rise. In all markets, the U.S. market has the fastest rate of return on military assets, and is driven by the activity of the U.S. stock guarantee. The net financing and financing balance amount increased by 7%, reaching 67.7 billion Hong Kong dollars. This quarter's popular Hong Kong stock IPO has also driven customers' enthusiasm for financing, pushing the Japanese military financing balance to achieve double-digit rate of return on military assets.

In the fourth quarter, net asset inflow remained strong. The mark-to-market losses on clients' Hong Kong stock holdings weighed on overall client assets. Total client assets were HK$1.23 trillion at quarter end, up 66% year-over-year and flat quarter-over-quarter. Both Hong Kong and Singapore saw rising net asset inflow contributions from high-net-worth clients, while in the U.S., average client assets recorded the fastest sequential increase among all regions. Underpinned by heightened U.S. stock margin trading activity, margin financing and securities lending balance expanded 7% sequentially to HK$67.7 billion at the quarter end. A number of popular Hong Kong IPOs during the quarter further contributed to the increased use of leverage, driving a double-digit sequential rise in daily average margin balance.

In the fourth quarter, the total trading volume of the platform reached a new record high of HK$398.1 million, which increased by 38%. the share price rose by 2%. In 2025, the U.S. stock market presented a diversified investment theme. Our customers' interest in trading also expanded from large-scale technology stocks to more industries and related landmarks in the AI industry chain. In this context, the share price of each share in the fourth quarter rose by 17% to HKD3040 million. In the second half of the quarter, the share price of the four-week share price with a 31% drop to 8,211 Hong Kong dollars. The trade heat of Chinese technology stocks has dropped, but the exchange rate of gold and other precious metals has increased. Although the currency market is weak, the exchange rate of encrypted currencies remains stable at about 2.1 billion Hong Kong dollars. At the same time, the exchange rate of encrypted currencies continues to rise among local trading customers in Hong Kong, Singapore and the U.S. market. We have added more than 10 currency types to the Singapore and US markets, and have further enriched the market data and information services related to cryptocurrency.

Total trading volume climbed to a record HK$3.98 trillion, up 38% year-over-year and 2% quarter-over-quarter. The US equity market featured numerous investment themes in 2025, And we observed our clients diversifying beyond large technology names into a broader range of sectors and across the AI value chain. As a result, U.S. stock trading turnover was up 17% sequentially to $3 trillion Hong Kong dollars in the fourth quarter. Hong Kong stock trading volume contracted 31% quarter to quarter to $821 billion Hong Kong dollars. As investor appetite for China technology stocks waned amid the market correction second half. This decline was partially offset by elevated trading interests in gold and other precious metals-related names. Crypto trading volume remained resilient at approximately 20 billion Hong Kong dollars despite market headwinds, with crypto penetration among trading clients rising across Hong Kong, Singapore, and the U.S. During the quarter, we expanded our crypto offerings by adding more than 10 coins in both Singapore and the U.S. and further enriched our market data and information around crypto.

In terms of financial management, the customer asset size is 1796 billion Hong Kong dollars. The growth rate is 62% and the return rate is 2%. In order to better meet the demand for diversified asset configuration for customer daily growth, we continue to expand product supply in all markets. In Hong Kong, we have launched more high-credit fund products and further reduced the starting threshold for structural products, allowing more retail customers to participate in investment. In Singapore, we have added multiple new stock funds and short-term bond funds.

In Malaysia, we have listed gold index funds in line with Islamic law. Welcome, investors from Guangzhou. We brought in our portfolio suite across key markets. In Hong Kong, we enhanced our lineup of high-dividend funds and further lowered the minimum investment threshold for structured products, making them more accessible to retail investors. In Singapore, we introduced more Singapore equity funds as well as short-duration bond funds. In Malaysia, we launched Soraya-compliant Gold Tractor Funds, which were met with strong demand from local investors.

In this quarter, we optimized the opening process of Tianjin Bank, We also launched public funds and insurance products in the bank app. At the same time, we also launched the Tianjin Bank desktop to provide customers with a seamless cross-end user experience. We continue to strengthen our regulatory and risk management capabilities, and we have independently developed anti-waste systems and built seven major recognition systems based on AI. We will further expand the infrastructure construction of the bank's underlying infrastructure and continue to optimize user experience. During the quarter, we streamlined Airstar Bank's account opening processes and launched mutual funds and insurance products in the banking app.

A desktop version was also introduced to provide clients with a seamless cross-platform experience. On the internal front, we strengthened Airstar Bank's compliance and risk management capabilities by developing an anti-money laundering system and AI-powered fraud detection infrastructure. Looking ahead, we'll continue to enhance the technology infrastructure and user experience, while exploring synergies between Aerostar Bank and the group, as we advance toward a comprehensive, one-stop financial services platform in Hong Kong.

At the end of the century, our IPO sales and IRR customers will reach 600. With a growth of 24% in the same year, we have further intensified our position as the first retail chain in the Hong Kong stock IPO segmentation and acquisition field. In the year, we have provided more than half of the investment banking services provided by major listed companies in Hong Kong. The platform's annual acquisition amount accounts for 49% of the total acquisition amount of the Hong Kong IPO publicly sold. The number of investors participating in the Hong Kong stock IPO is nearly five times that of in 2024. In the fourth quarter, By quarter end, we have 600 IPO distribution in our clients, a 24% year-over-year increase.

In 2025, we reinforced our standing as the leading online broker for Hong Kong IPO distribution and subscription. In 2025, we provided investment banking services to over half of the newly listed Hong Kong main boy companies. with four-year subscription amount on our platform representing 49% of the total public offering subscription amount. The number of Hong Kong IPO subscribers on our platform grew nearly five times year-over-year. In the fourth quarter, we assumed the role of overall coordinators for a number of high-profile Hong Kong IPOs, including those of Xunce Technology and XiaoNoodle.

Next, let's welcome our Chief Financial Officer, A-Chi, to introduce our financial performance.

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

Thank you, Dave and Daniel. Please allow me to walk you through our financial performance in the fourth quarter. All the numbers are in Hong Kong dollars, unless otherwise noted. Total revenues were $6.4 billion of 45% from $4.4 billion in the fourth quarter of 2024. We conclude another strong year with full-year revenue growing to $23. $2.8 billion of 68% year-over-year. Goldfish Commission handling charge income was $2.8 billion, up 35% year-over-year and down 5% Q2Q. Total trading volume grew on both year-over-year and Q2Q basis, while blended commission rate moderated as clients traded more higher price for U.S. stocks and options during the quarter. Interest income was $3 billion of 50% UOV and a flat QVQ. The UOV increase was driven by higher interest income from security borrowing and the lending business, banking deposits, and the margin financing. On a sequential basis, interest income remains stable. A higher interest income from banking deposits and the margin financing was offset by lower interest income from security borrowing and the lending business. Other income was $630 million of 79% year-over-year and 42% QVQ. The year-over-year increase was primarily attributable to higher fund distribution service income and IPO subscription service charge income. The QVQ increase was mainly driven by higher enterprise public relationship service charge income and IPO subscription service charge income. Our total cost was $729 million, a decrease of 6% from $776 million in the fourth quarter of 2024. Volcage Commission handling charge expenses was $141 billion, up 26% year-over-year and down 12% QVQ. Both the year-over-year and the QVQ movement were roughly in line with the change of Volcage Commission and handling charge income. Interest incomes were $437 billion, down 15% year-over-year and 8% QVQ. Both the year-over-year and the QVQ decrease was mainly due to lower interest expenses associated with our security borrowing and lending business. Processing and servicing costs was $150 million, flat year-over-year, and a down 6% Q2. The Q2 decrease was mostly driven by the sequential decrease in crowd service fees. As a result, total gross profit was $5.7 billion, an increase of 56% from $3.7 billion in the fourth quarter of 2024. Gross margin was 88.7% as compared to 82.5% in the fourth quarter of 2024. Operating expenses were up 9% year-over-year and down 8% QVQ to $1.6 billion. IND expenses were $507 million, up 27% year-over-year and down 12% QVQ. The year-over-year increase was mainly due to an increase in IND headcount to support crypto and AI-related initiatives. The QVQ decrease was largely attributable to bonus accrual made in previous quarters. Selling and marketing expenses was $507 million, up 9% year-over-year, and down 13% Q4Q. The year-over-year increase was in line with the growth of our next new fund accounts, and the Q4Q decrease was largely attributable to sequential lower new client additions and to less extent the decrease in client acquisition costs. G&A expenses was $549 million, down 5% year-over-year, and up 5% Q4Q. The year-over-year decrease was primarily due to the lower professional service expenses compared to the year-ago quarter. As a result, income from operation increased 87% year-over-year and the 6% year-over-year to $4.1 billion. Operating margin increased to 64.4% from 50% in the fourth quarter of 2024, mostly due to strong top-line growth and operating leverage. Our net income increased by 80% year-over-year and a 5% cumulative to $3.4 billion. Net income margin expanded to 52.3% in the fourth quarter as compared to 42.2% in the same quarter last year. Our effective tax rate for the quarter was 16.3%. That concludes our prepared remarks. We now would like to open the call to questions. Operators, please go ahead.

Thank you. To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To answer your question, please press star 1 1 again. Please stand by while we compile the Q&A roster.

We will now take the first question.

From the line of Peter Tsang from JP Morgan, please go ahead.

Thank you very much for the opportunity to ask me questions. And congratulations on our very good four-week performance. I have two questions. My first question is about the business trends we've seen in the first quarter of 2026. including the growth of our new users, the entry fee of our customers, and the transaction fee. I would also like to ask about the trend of the interest rate in the first quarter. My second question is about the structure of our transaction fee. In the past, many people have seen us as a China beta stock, and they also think that our customers will lose a lot of middle and high-end stocks. This is Peter Zhang from J.C. Morgan and many thanks for giving me the opportunity to ask questions and congratulations on the result. I have two questions. My first question is on the among the first quarter business trend. I'm wondering whether management can give some color on the paying hand growth, the asset inflow, and the trading velocity in first quarter year to day. And also, how about the commission fee rate trend in 2026? My second question is regarding the trading volume breakdown, particularly for the U.S. trading volume. This is mainly because in the past few years, some investors may view FUTU as a beta stock to China. And some investors think that our client trade a lot Chinese ADR stocks. But I guess given that we have very successful overseas expansion, the trading volume mix may change over time. So I'm wondering whether Benjamin can give us some color on the breakdown of your US stock trading volume into Chinese ADR and other stocks. Thank you.

Okay, thank you, Peter. I will answer your second question first. I will hand over the first question to my colleague, Daniel. Regarding the trading ratio of Chinese stocks and US stocks, the actual ratio has been decreasing in the past few seasons. Last quarter, in the fourth quarter, the trading ratio of Chinese stocks and US stocks was actually less than 10%. Similarly, in the previous quarter, Let me just do the translations for your second question. I will do the answers regarding the Chinese ADR's contribution for our US stock trading volumes. In the latest quarter, this portion is less than 10%. And even we compare with the third quarter last year, the number was still roughly around the 10%. So I think structure-wise, the contribution from Chinese ADRs to our overall U.S. stock has been gradually decreased. I will now hand over to my colleagues, Daniel, who will answer your first question.

Yes, according to the current data of the first quarter, we expect that the overall increase in the number of real estate customers and trading volume in the first quarter will be at an almost stable level. Then, under the guidance of this relatively strong super-low mood, there will be a double-digit return growth in the first quarter. Then, we expect that the first quarter will reach the highest level of single-segment entry into the gold. So based on the trends we have seen year to date, we expect net new funded accounts and trading volume to be flattish quarter of a quarter. And we've seen very strong bottom fishing activities from our clients. So we expect a double-digit sequential increase in net asset inflows. And we expect the quarterly net asset inflow in the first quarter to be the highest quarterly number. And mark-to-market impact was pretty strong, and it was pretty negative quarter to date. So we expect all in all total client assets to increase modestly by the end of the first quarter. Thank you. And in terms of commission, blinded commission rate, so far I think we are seeing a slattish Q1Q blinded commission rate.

Thanks.

Thank you.

We will now take the next question from the line of Emma Xu from Bank of America Securities. Please go ahead.

Thank you for giving me this opportunity to ask a question. I am Emma from the Bank of America Securities. I have two questions about the development of this business. One is to ask about the current business of virtual currency. China China China China China Before, we talked more about the negative energy, but we are also worried about the challenges of AI in the relative real estate business, including the pressure on the take rate. So I would like to ask the management of the company if they have anything to share with us. Let me translate my question. The first one is about the crypto business. So what are the latest developments in the crypto-related business after the relaxation of Hong Kong's regulatory policies in February this year? What new products have been launched and what is the current implementation status and performance? The second question is about the AI. What specific empowerment does AI currently bring to your business? Will AI bring challenges to some business or put pressure on tech rate given the SLI model of your business? Thanks.

Okay, thank you, Emma. Let me answer the first question about crypto. I will ask Liv to answer the AI question. On the other hand, we are still conducting the second stage of the VATP approval of the Hong Kong SFC. Currently, from the company's point of view, we are still very confident and hope to get the approval in the near future. After the approval of VATP, we also hope that in the near future, we can provide the customer with securities, financing, trading, and public assets. Staking and other services for these new products. At the same time, we also hope that in the future, we can rely on a more mature private financial management system to provide customized virtual assets to our high-end customers. At the same time, the platform will also provide a solution for some of our institutional customers in the future. From the last four seasons to now, we have implemented We will continue to increase our new products in some overseas areas, including Singapore and the United States. We will continue to enrich our products. As you mentioned in the European Union remark, in the past quarter, in Hong Kong, Singapore and the United States, we can see our customers the number of customers in the current trading currency assets has been integrated into a double-digit growth. At the same time, in these three markets, the penetration rate of the entire trading currency customers in the current quarter has continued to rise. At present, it has reached a high unit number and a low double unit number. We believe that this penetration rate will have a great room for improvement in the future. So in terms of the crypto development, I think in Hong Kong, we are still waiting for the Hong Kong regulators for our BATP license approvals. We are very confident in the near future we can get this license. And after the launch of the BATPs, hopefully in the near future, FUTU can start to provide our traditional clients for crypto trading on the back of the margin using their stock as the collateral for the margins. And also, we will provide a staking service for them as well. In the future, we also wish to provide a tailor-made crypto service to our high-net-worth clients, alongside with the service to our institution clients for the one-stop solutions. And then, In the past one quarter, we further enriched our product offering, trading different tokens in Singapore and in the U.S. And at the same time, as Steve mentioned in the opening remarks, in Hong Kong, Singapore, and the U.S., the number of the clients trading for the cryptos all include a double-digit increase. and the penetration rate for these tri-five people's trading crypto also increased a lot to the latest high single digits and low team levels. We think this penetration rate can continue to grow in the possible future. Thank you.

Let me talk about AI here. First of all, AI is a company-level strategy. Since 2022, We are actually already starting to make relevant investments. In the past few records, we have also been continuously increasing our investment in AI, and have deeply integrated AI capabilities into the customer's product experience and internal operations. Through AI, we have improved the efficiency of customer investment opportunities and collection of investment information. For example, the selection and summary of AI Daily and Weekly. It covers more than 20 types of data, including technical indicators, cash flow patterns, and so on. Compared to the same page updates, it will be more practical, and the scope of support will be wider. The AI tools for reporting and information have greatly improved the efficiency of customer information collection. In addition, in the fourth quarter, we introduced the function of AI quantifying transactions. Users only need to describe in simple natural language, can automatically generate and optimize trading strategies. This feature has received a lot of positive reviews from advanced investors, and has also reduced the threshold for building professional investment strategies. In addition, we have also expanded the asset division supported by AI Chatbot and AI Reader. Within the group, AI technology has also been systematically integrated into the production, operation, customer service, and intelligence teams, Open API. Open API. for the skills used in open college. Finally, I would like to talk about what we have accumulated over the years, such as sales, trading, cleaning, and calculation. These are the underlying capabilities combined with our determination and ability to embrace AI. I believe that in the age of AI, rich people can still have their own AI is a company-level strategic priority at Hutu.

We've actually started AI assessments in 2022, and over the past few quarters, we have ramped up AI investment by deeply integrating AI capabilities into our product experience and internal operations. We now leverage AI to enhance the efficiency with which our clients discover investment opportunities and gather information. Our AI-generated daily and weekly reports automatically filter and summarize key insights, cover over 20 types of market data, including technical indicators, candlestick patterns, and fun flows. And these offer better timeliness and broader content coverage compared to our peers. Furthermore, AI-powered summaries of earnings reports and news has also significantly improved client efficiency in gathering information. In the fourth quarter, we launched AI AlgoTrading, which allows users to generate quantitative trading strategies using simple, natural language. This feature has been very well received by the advanced traders on our platform, lowering the barrier to creating professional investment strategies. We have also expanded the at-the-classes coverage of our AI chatbots and AI analysis. So for the open cloud, it's quite popular recently. We now offer access through our open API. We've actually started developing OpenAPI in 2014 and have been optimizing that experience ever since. And we've also supported skills that are accessible to open call as well. So thanks to the years of development and accumulation and market data information in the trading infrastructure, as well as our execution and clearing capabilities, as well as our determination to embrace AI and our capabilities in leveraging AI to empower our business, we believe FUTU will stay as a leading player in the AI era.

Thank you.

Thank you. We will now take the next question. From the line of Qiyao Huang from Morgan Stanley, please go ahead.

Hello, everyone. I'm Huang Qiyao from Morgan Stanley. I would like to ask two questions. The first one is about the 800,000 customer guidance. We can see that since the beginning of this year, the market has been very fluctuating. I would like to ask the management to share with us the driving force of the customers, and which areas have more space to help us achieve this goal as high as last year, or what new things can help us achieve this goal. The second question is about Tianxing Bank. I would like to ask Mr. Guan to share with us the position of Tianxing Bank in the future. Especially compared to the same-year virtual bank and some traditional banks in Hong Kong, what will Tianxing Bank focus on in the future? In the short term and the medium term, will there be a timeline for the release of products? In the future, what is our outlook on Tianxing Bank from a business perspective, including income, will it focus more on traditional banks, this kind of asset burden type business, or more on some So the first question is regarding the 800,000 guidance on new founded accounts, which is a very strong number. And by considering the rising market volatility year to day, I'm just wondering what will be the main drivers and the main areas that the management sees has largest potential to help achieve this target, especially including any new markets that we are targeting. Second question is regarding the Airstock Bank. Just wondering what's the long-term planning, strategic planning for the banks positioning the market? What kind of differentiation will be there compared to other virtual bank and traditional banks? And do we have a timeline of the product pipelines? Over time, what will be the expected revenue structure for Airstock Bank? Will it be more balance sheet business or more fee income business in wealth management? Thank you.

Thank you for your two questions. I will answer these two questions. The first one is about the target of 800,000 competitive real estate customers that we proposed this year. In addition to the eight markets that we already have business in, this target actually includes our assumption that we will enter a new market this year. Such a prediction is in this. uh, uh, uh, uh, uh, uh, uh, . . . . . . . . . . Since the beginning of the fourth quarter of last year, we have made some major improvements to the app of Tianxin Bank. As Liz mentioned in the opening remarks, we have already launched a product of public funds and insurance. In the future, we will have some products related to financial management in the future. At the same time, from some internal mechanisms, we are also continuing to strengthen the capability of return and risk management. uh uh uh For the first question, for our 800 fund accounts, this number we have already in that one new market we will have potential to enter into in 2026. Despite the year today, there is some market volatility arising from political tensions and a lot of market headwinds. Our client acquisition's run rate still remains very rough, and we are very confident to achieve these targets toward the end of this year. Then for the L-star banks, we will continue to focus how to generate meaningful synergies between Airstock's banks and the future existing business. As Lee mentioned in the opening remarks, in the fourth quarter and also in the next couple of quarters, most of the work in Airstock Bank will center around in two aspects. Externally is to upgrade the user experience, and internally we will further to enrich the infrastructures. On the external side, we have already launched some new wealth management products in L-Star Bank app, like mutual funds and insurance products. There will be more wealth management related products to be launched in the app in the next couple of quarters. Then internally, we further to enhance the compliance of the risk controls. A lot of proprietary developed products to enhance the business efficiency and the lower operating costs for the banks. In the long run, we think the revenue stream will be more schooled to these fee incomes arising from the wealth management associated activities supplement by some balance sheet expansion business. But having said that, this is a very long-term target for our revenue generation. So in the near term, we will still continue to focus the two aspects I mentioned before.

Thank you very much.

Thank you.

We will now take the next question. From the line of Yu Fan from CICC, please go ahead.

Okay, thank you for giving me the opportunity to ask this question. Congratulations to the company for once again achieving a very bright performance in the fourth quarter. I am Yoyo, an analyst at Zhongjing. I also have two questions for you. I would like to ask the management First of all, I would like to ask the management to help disassemble the number of new users in the fourth quarter. Because we can see that although the market is still fluctuating in the fourth quarter, the number of new users is still relatively high. This is due to the general distribution of each market. And then, if we look at it from the perspective of the current amount of new users, what is the general distribution of the structure of a region? This is the first question. The second question is also to ask about the customer's total assets. I would like to ask, among the four regions, how much volume is there in terms of income? And the rest is from the market-to-market impact. In addition, from the perspective of AUM, what is the ratio structure of each region? This is the second question. Then I will quickly translate it here. This is from CICC, and I have two questions. The first one is about the user regional breakdown. We still see strong customer growth this quarter despite the market downturn. So what's the regional breakdown of our existing and also the new paying client? And the second question is about the AUM. How much is from client net asset inflow and how much from market to market depreciation? and what is the regional breakdown of the client asset? Thank you.

Okay, thank you, Youyou. Let me answer these two questions. One is from the perspective of a four-segment competitive real estate client. Malaysia and Singapore have contributed more than half of the real estate client growth. Other regions, such as the U.S. market, Singapore market, and the Japanese market, have contributed about 10% to 20% of the real estate client growth. So, as of last year, from the distribution of the total number of sustainable customers, the total number of sustainable customers of overseas brands in other parts of China has increased to 55%. Among them, Singapore and the U.S. market have a relatively large share. This is the first question about you. China China China China China China China China The stock market has some big feedback. The Hengsheng index dropped by 5%. The Hengsheng technology index dropped by about 15%. So, the total assets of our customers at the end of the year have been affected by the bigger market-to-market. This impact has basically completely compensated for the numbers that we entered the quarter last year. So, from the perspective of storage, For the contribution of the fourth quarter of next U.S. Malaysia and Hong Kong collectively contributed over 50% of new client ads in the fourth quarter. Then other remaining markets like the US, Singapore, and Japan, their contribution rate is in the percentage of 10% to 20%. And as the year ends, the fund accounts in the universe of our overseas brand, Mumu, has already increased to 55% of total group fund accounts. Among them, the contribution from Singapore and the U.S. ranked most. And for the second question regarding the new net asset flow inflows in the first quarters, the QMQ basis, the net asset inflows have some moderations in the first quarter, but on the absolute levels, it remains in a very high level. The momentum is keeps very strong. But you can imagine in the fourth quarter, Hong Kong market's got a lot of retreat. For instance, Heng San index down 5% Q2Q, and Heng San tech index down 15% Q2Q. Therefore, we got some negative impacts from the market to market loss, which almost fully offset the NASA assay inflows in the fourth quarters. And at year end, Hong Kong remains the largest in terms of clients access AUM breakdowns, followed by Singapore and some new markets like Japan and the US. The contribution we see a very good momentum to increase.

Thank you very much.

Thank you. Thank you. We will now take the next question. From the line of Leon Chi from CITICS CLSA, please go ahead.

Okay, thank you very much for giving me the opportunity to ask this question. I am Leon from CITICS. I would like to ask two questions about the management layer today. The first one is about the new market that we just talked about. I don't know if it is convenient for the management layer to disclose which market it is. If it is not convenient to disclose, can you give us some The second question is something I would like to ask in more detail, because we see that The performance of the fourth quarter has once again proved that even when there is some fluctuation in the stock market, our customer income is still very strong. So the specific income, we will use the largest Hong Kong market as an example. How do we test some of our senior customer managers? Is there this one, the specific income? In addition to the income, we may also test some of the indicators. For example, the new self-employed number of customers, I will briefly translate my questions into English. Thanks for taking my questions. This is Liangqi from CLSA. and congrats again on very strong fourth quarter results. I have two questions today. First one is actually a follow-up on our new markets this year. Is it possible for management to give us some clues in terms of our rationale of entering these new markets? Is it going to replicate one of our existing markets? Is the significance mostly on new paying clients or any new strategy in terms of products, et cetera, so if it is possible for management to share with us some clues of entering the new market this year. The second question is actually a bit operational. We just want to understand the reasons behind the very resilient quarterly net client asset inflow. In particular in Hong Kong, we do understand that we started high net worth clients a few years ago. How do we evaluate the performances of our relationship managers for these high net worth clients? Is net client inflow a major metric that we actually look at, or we actually look at other metrics such as total assets, new funded accounts, or even metrics such as the performance of client assets, or the number of different products that our clients hold. So this kind of operational matrix will be very helpful for us. Thank you very much.

Okay, thank you Leo. Let me answer these two questions. Regarding the first question, because indeed, we are still in the process of applying for the relevant license for this new market. Indeed, it is not yet convenient to disclose the specific market name. This new market should be in the Asian region. The second question is related to some of the internal assessment mechanisms of our financial management. I think what I can share is that, first of all, we consider such a problem from the value of a whole life cycle of the entire customer. So the internal assessment of our colleagues is also a comprehensive system of indicators. And this system will also follow the situation of our business development and make appropriate adjustments from time to time. For example, the income of the customer you mentioned, including the total assets of the customer, I believe there may also be the flow rate of the customer, and some other indicators are a part of our entire assessment system. Regarding the first question for this new market, it is still too early to share the market name, given that we are still in the process of the license applications. But we think this market will be in the universe of Asia. Then for the second question, for the certain performance measurements for our internal colleagues regarding the high net worth clients, as you said, the new asset inflow is definitely one factor of our overall matrix, which is very comprehensive. And also our bottom line is to care about the client's lifetime values. Therefore, the net asset inflows are also including the client's total assets, retention rate, all these factors into this matrix.

Thank you.

Thank you. We will now take the next question. From the line of Cindy Wang from China Renaissance, please go ahead.

Thank you, Manager Chen, for giving me this opportunity to ask a question. I have two questions I want to ask. The first question is about our 2026 new customers, which is worth $800,000. Is there a way to help us figure out how the Hong Kong and overseas markets are expected to contribute? And then for the whole year, how do we look at the cost of these customers now? Second, I would like to ask, because we also saw the first quarter from the beginning of January to recently because of the geopolitical relationship, so the market's stock market fluctuation is also relatively large. So, can you give us some guidance on the current investment in your platform, the first quarter, the trading volume, the exchange rate, and the two dragon's growth trend? I will quickly translate my question. Thanks for taking my call and congrats for the great fourth quarter result. So I have two questions here. First, for your new funding accounts target 800,000 in 2026, could you break down the expected contributions from Hong Kong and overseas markets? And what is the expected average customer acquisition cost for the whole year? Second is quarter today we saw a strong market rally starting in January, but followed by recent stock market volatility due to geopolitical risk. So based on investors trading activity on your platform, could you provide some guidance on trading volume, trading velocity, and the margin financing and securities lending demands trend in first quarter? Thank you.

Thank you, Cindy. Let me answer the first question. For the second question, I will ask my colleague, Daniel, to answer it. Because the other analyst also talked about some of the color of the year today. Regarding the goal of our entire stock market in 2026, I believe from the current market trend, it will be the same as our structure in 2025. ah, ah, ah, ah, ah, ah, ah, ah, ah, ah, Uh, uh, uh, uh, uh, uh, uh. Hong Kong will continue to be a very strong contributor in terms of the geographic locations. Then for the CAC, our initial objective for this year's CAC will be around the 25 to 30K, sorry, 250K to 3, oh, sorry, $2,500 to $3,000 Hong Kong dollars, considering the uncertainty of this year's market volatility. And also there will be some preloaded costs in this new market expansion, as I mentioned before. Therefore, there we want to leave some flexibility in the CAC objectives. But yet today, we think the client acquisition situations remain very robust, and the CAC for the first two months, I think, will be in the low end or even lower than the range I mentioned before.

In the first quarter, the market has been fluctuating a lot. The overall turnover of customers is active. We expect the overall turnover of customers in the first quarter to be stable, so it will remain at the highest level in history. In the case of the overall return of the market, the customer superimposition is still relatively strong. So we expect that in the end of the quarter, there will be a chance for a global growth. So in the first quarter, quarter today, the market has been quite volatile, and we've seen our clients engaging very actively with the market. We expect the first quarter's total trading volume to be flattish, quarter to quarter, so it's going to stay at the historic high that we've seen in the fourth quarter last year. And when the market's experience the pullback, we've seen lots of bottom efficient activities from our clients. We're expected a sequential increase in our margin financing and securities lending balance. And as we shared earlier, net asset inflow is also very strong, and we expect a historic high quarterly net asset inflow in the first quarter.

Thank you.

Thank you. We will now take the next question. From the line of Zoe Tung from Jefferies, please go ahead.

Thank you for accepting my question. I'm Zoe from Jefferies. I have two questions to ask. The first one is about Hong Kong. How do we see the competition pattern in Hong Kong and the market share of the fourth and first quarter? The second one is about shareholder returns. I would like to ask about the use of the return plan of US$8 billion and the next two years. Thank you. Let me quickly translate it. Thanks, management, for taking my questions. This is Zoe from Jefferies. I have two questions. First, could you please elaborate on the competitive landscape in Hong Kong and how do we see the market share momentum in Q4 and recently in Q1? And second, in November last year, we announced a share repurchase program of up to $800 million to December 2007. Could you please give us an update on the progress and how should we expect the pace in the next two years? Thank you.

Okay, thank you Zoe. I will answer your second question first. I will ask my colleague Daniel about the Hong Kong market. Regarding our return on purchase plan, we did not use our return on purchase plan in the fourth quarter of last year. Because the entire return on purchase plan is covered until the end of 2027. Next, we will combine the situation of the entire capital market, including the situation of the stock price, to carry out the corresponding use of such a return on purchase plan. Regarding the share buyback programs, so far in the fourth quarter, actually, we have not conducted any share buyback within this 800 million share buyback programs, which we'll cover toward the end of 2027. So we will continue to closely look at the market conditions and looking for potential market opportunities to conduct this share buyback program, which is more preemptive. Thank you.

About the situation of the Hong Kong market, we generally think that the competitive pattern of the Hong Kong market has not changed much. In fact, some of our business progress or some of the speed of the market expansion has also been affected to a certain extent by the environment of the whole market. Under the influence of the 4th quarter, the Hong Kong stock market has reshuffled greatly, and the overall mood of the retail customers in Hong Kong is still relatively low. So, the market expansion in Hong Kong has a certain slowdown. However, the very active IPO of the Hong Kong stock market in this quarter has supported the mood of the customers to a certain extent. Looking back at the whole of 2025, The Hong Kong market has actually contributed to the growth of the largest number of real estate customers in the entire group, and the increase in the number of real estate customers in the whole year has achieved a high double-digit rise. We can continue to consolidate and expand our leading position on the basis of a very high market share. In addition to the rapid growth of customers, the confidence of the Hong Kong market in the whole year, including the year 2025, is also very strong. We see that the contribution ratio of high-end customers continues to increase. We think this is also due to our constant wealth management product supply. and through a series of brand activities, investment lectures, and conferences, we have strengthened the image of a very professional financial brand. The overall strong performance of the Hong Kong market in 2025, we think, is also a confirmation of our previous judgment on the Hong Kong market. In terms of the number of investors and the size of assets in Hong Kong, there is still a very considerable room for growth. Looking forward to this year, we will continue to improve our product capabilities and continue to strengthen our brand construction. We are still very confident in the long-term growth of the Hong Kong market. So we haven't seen any incremental changes in terms of the competitive landscape in Hong Kong. We think our performance in Hong Kong is still influenced by the overall market sentiment. And in the fourth quarter, due to the sharp pullback of the Hong Kong stocks, the Hong Kong retail investors was overall quite bearish about the market. So our client acquisitions accelerated sequentially. But the very active Hong Kong IPO market to some extent lifted investor sentiment. And just looking back at 2025, Hong Kong contributed the highest number of net funded accounts within the FUTU group, and the net funded accounts achieved high double digits year over year increase. So we were able to extend our leadership and further solidified our leadership on top of a very high market share. And we not only saw very strong client growth in 2025, we also saw very strong net asset inflow. And we've seen a higher percentage of contribution in terms of net asset inflow from our high net worth clients, which is largely due to our growing portfolio of wealth management products and our more professional, in our image of a professional finance platform, thanks to the series of brand initiatives that we carried out and lots of investment forums and lectures that we did throughout the year. And we think that very strong performance in Hong Kong in 2025 really speaks to our assessment of the market potential earlier. We believe that Hong Kong has huge room for growth for us in terms of both client numbers and client assets. And looking to 2023, we'll continue to enhance our product capabilities. We'll continue to invest in brand buildings.

And we're very optimistic about the long-term growth opportunity in Hong Kong.

Thank you.

Thank you. We will now take... Sorry.

I would like to hand back over to the speakers for closing remarks.

That concludes our call today. On behalf of the FUTU management team, I would like to thank you for joining us. 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.