Leon Qi: Let me record my questions in English. This is Leon Qi from Daiwa. Thanks for taking my questions. My first question is you, regarding Japan market, would management say that our competitive landscape in the online broker space in Japan, it’s better than the U.S. from the experience that we run our beta version. More specifically, do we have any expectations on CAC on payback period in Japan? And my second question is on Hong Kong. We are very glad to see that recently FU has opened an offline experience center in Hong Kong. And many, many people are very excited about the product offerings. Just want to ask management that what kind of user operating matrix or financial matrix are we expecting from the offline experiences shops and do we plan to open more offline shops?
Arthur Chen: Thank you. I think the first question can be answered by my colleague, Daniel, and regarding our physical store in Hong Kong, I think, Leaf is very happy to share more colors and about these thoughts.
Daniel Yuan: Right. So regarding the competitive landscape in Japan, we believe, it is a lot more benign than what we saw in the U.S. We understand that the online securities brokerage industry in Japan is now dominated by a few players. The top five internet brokers including Rakuten and SBI now account for the majority of the market share in terms of brokerage trading volume. They have each accumulated over 1 million clients, among which Rakuten and SBI are the top 2 players. But overall, we think that the landscape is a lot more fragmented than what we saw in the U.S., and we believe that our current product offers a competitive advantage, a very significant one over the existing online brokers. And the Japanese market is huge.
And as we mentioned earlier, growing rapidly, and we are very confident to obtain a meaningful market share in Japan. Overall, I think since we haven’t really started acquiring clients yet, it’s probably too early to talk about customer acquisition costs and payback period. But based on our initial analysis, the Japanese retail investors are generally a lot more affluent than the U.S. investors. And actually, there are a lot more ways to monetize on trading in Japan. Let’s take U.S. stock trading, for example. It is now, industry standards charge zero commissions for U.S. stock trading in the U.S., while, everyone still charges, at least all of the major online brokers in the Japan still charge pretty high commission for U.S. stock trading.
So, we think, generally, the investors are wealthier and there are more monetization opportunities in Japan. Thank you.
Leaf Hua Li: Since this opening on July 31st, over a 1,000 people have visited our experience store and many of who are middle-aged customers who are not familiar with the online account opening process. And previously it was difficult for us to reach this client group through our online marketing channels, but these happened to be the target customer group that we want to further tap into. So, the experience door has helped us establish connection with these clients and has become an important channel to enhance Futu’s brand recognition among this group. In addition, the experience door in Hong Kong allows us to make face-to-face communications with these users and have a better understanding of Futu’s product offerings. And according to the data we have collected so far, the customer acquisition cost of experience stores is actually lower than our average Hong Kong market customer acquisition cost.
So from a CAC perspective, experience stores can actually help us reach previously underpenetrated client groups and further enhanced brand image in Hong Kong at a lower cost. From the perspective of operating costs, we believe that experience door really help us with long-term brand building, and we also plan to use these doors as a venue for various offline investor educational activities events and corporate offices, which will further help save costs. And if these experience — if this experience door continues to record very good progress in terms of client acquisition, we expect to have more experience stock stores in Hong Kong. Thank you.
