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    Alan Kuang • Citigroup

    Alan Kuang's questions to Futu Holdings Ltd (FUTU) leadership

    Alan Kuang's questions to Futu Holdings Ltd (FUTU) leadership • Q4 2024

    Question

    Alan Kuang of Citigroup requested a breakdown of interest income between idle cash and margin financing. He also asked about the prevailing yield on idle cash in Q4 and the potential impact of a 100 basis point Fed rate cut.

    Answer

    Chief Financial Officer Arthur Chen responded that interest income from idle cash deposits constituted roughly 40% to 45% of total interest income. He provided sensitivity guidance, stating that every 25 basis point cut by the Fed would negatively impact monthly pre-tax profit by approximately HKD 8 million to HKD 10 million.

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    Alan Kuang's questions to OneConnect Financial Technology Co Ltd (OCFT) leadership

    Alan Kuang's questions to OneConnect Financial Technology Co Ltd (OCFT) leadership • Q1 2024

    Question

    Alan Kuang of Citigroup followed up on the cloud business termination, asking about the segment's historical growth and profit margin profile and how its discontinuation would impact the company's goal of reducing net loss this year.

    Answer

    CFO Yongtao Luo noted that the cloud business was relatively profitable and accounted for about 30% of revenue over the past two years. He stated that further financial details would be released after the transition is complete and reiterated that the change does not alter the company's commitment to its mid-term profitability target.

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