Financial Performance - In the first half of 2022, the company's revenue and other income amounted to HKD 8.937 billion, a decrease of 18% compared to the record high in the first half of 2021[7]. - The net investment loss for the company was HKD 378 million, contrasting with a gain of HKD 428 million in the first half of 2021, primarily due to a net fair value loss of HKD 511 million from externally managed investment funds[7]. - The company's EBITDA profit margin was 72%, down 7% from the record high in the first half of 2021[8]. - Shareholders' profit attributable to the company was HKD 4.836 billion, a decrease of 27% compared to the record high in the first half of 2021[8]. - Total revenue for the first half of 2022 was HKD 9,278 million, a decrease of 11% compared to HKD 10,407 million in the same period of 2021[10]. - EBITDA for the first half of 2022 was HKD 6,394 million, down 26% from HKD 8,607 million in the first half of 2021[10]. - Shareholder profit attributable to the company for the first half of 2022 was HKD 4,836 million, a decline of 27% from HKD 6,610 million in the previous year[10]. - The company reported a decrease in trading fees and trading system usage fees to HKD 3,553 million, down 13.8% from HKD 4,124 million[110]. - The company reported a net profit of HKD 6,610 million for the period, compared to HKD 6,589 million in the previous year, marking a growth of 0.3%[115]. Trading Activity - The average daily trading amount decreased, leading to a reduction in trading and settlement fees, with core business revenue down 11% compared to the first half of 2021[7]. - Average daily trading value for the Hong Kong Stock Exchange was HKD 138.3 billion, a decrease of 27% compared to HKD 188.2 billion in the same period of 2021[11]. - The average daily trading value for the Stock Connect (Shanghai and Shenzhen) was RMB 103.9 billion, down 9% from RMB 114.4 billion in the previous year[11]. - The average daily trading volume of derivative products increased by 35%, reaching 705,000 contracts compared to 522,000 contracts in the previous year[11]. - The average daily trading value of ETFs increased by 59%, reaching HKD 97 billion[18]. - The average daily trading volume of the Hang Seng Tech Index futures reached 64,928 contracts in the first half of 2022, more than a sevenfold increase compared to the same period in 2021[37]. - The average daily trading volume of MSCI China A50 Connect (USD) index futures was 19,863 contracts, a 72% increase compared to the average daily trading volume from the launch date until the end of 2021[37]. Operating Expenses - Operating expenses increased by 11% compared to the first half of 2021, driven by higher employee and professional fees[8]. - The company reported a 14% increase in operating expenses, attributed to rising employee costs due to talent investment and recruitment[12]. - Operating expenses increased by 16% in the first half of 2022, reflecting higher costs allocated to the listing department[27]. - The company incurred a net cash outflow from investing activities of HKD 2,141 million, compared to a net inflow of HKD 94 million in the previous year[116]. - Employee costs for the six months ended June 30, 2022, totaled HKD 1,667 million, an increase from HKD 1,495 million in 2021, marking an 11.5% rise[128]. New Products and Innovations - The company launched several new products, including the first Metaverse-themed ETF and the first pure Hong Kong stock ESG ETF in early 2022[6]. - The company is focused on long-term business development and innovation, including the introduction of a new SPAC listing system and market optimization measures[3]. - The introduction of qualified ETFs into the Stock Connect program on July 4, 2022, marks a significant milestone in enhancing connectivity between Hong Kong and mainland China capital markets[19]. - New product launches included the first blockchain ETF, first metaverse-themed ETF, first carbon futures ETF, and first pure Hong Kong stock ESG ETF[19]. - The group is enhancing its technology capabilities to transition from an infrastructure-based company to a more customer-centric organization[20]. Market Conditions and Strategic Focus - The company continues to focus on building a leading market despite the challenging global financial environment[18]. - The company is committed to sustainable development and has partnered with the Guangzhou Carbon Emission Trading Center to explore opportunities in the carbon finance sector[19]. - The company aims to strengthen its position in the Greater Bay Area, leveraging cross-border trading initiatives to boost market participation[171]. - HKEX is committed to sustainability, with plans to introduce green financial products to support environmental initiatives[171]. Shareholder Information - The board declared an interim dividend of HKD 3.45 per share, payable in cash[19]. - The interim dividend declared on June 30, 2022, was HKD 3.45 per share, compared to HKD 4.69 per share in 2021, a reduction of 26.4%[133]. - The company has not purchased, sold, or redeemed any shares other than those acquired under the share award plan during the reporting period[98]. Financial Position and Assets - Total financial assets increased by 35% to HKD 463.68 billion as of June 30, 2022, compared to HKD 343.81 billion at the end of 2021[68]. - The company's cash and cash equivalents rose by 16% to HKD 209.50 billion as of June 30, 2022, compared to HKD 181.36 billion at the end of 2021[68]. - The total number of shares held for the share award plan as of June 30, 2022, was 2,299 thousand shares, with a corresponding capital of 861 million HKD[19]. - The total assets increased to HKD 513,046 million as of June 30, 2022, up from HKD 399,304 million at the end of 2021, representing a growth of 28.6%[112]. Regulatory and Compliance - The audit committee, along with external auditors, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022[79]. - The company has adopted the Standard of Conduct as its code of ethics for directors in securities trading[89]. - HKEX has complied with all provisions of the Corporate Governance Code, except for the rotation of directors as per B.2.2[88].

Financial Performance - In Q1 2022, the company's revenue and other income amounted to HKD 4.69 billion, a decrease of 21% compared to Q1 2021's record high of HKD 5.96 billion[6]. - The company reported a net investment loss of HKD 104 million in Q1 2022, compared to a gain of HKD 219 million in Q1 2021, reflecting a significant decline in global stock and fixed income market valuations[7]. - The company’s net profit attributable to shareholders was HKD 2.67 billion, a decrease of 31% compared to HKD 3.84 billion in Q1 2021[7]. - Total revenue and other income for Q1 2022 was HKD 4.69 billion, a decrease of 21% compared to Q1 2021, primarily due to reduced trading and settlement fees[11]. - The stock trading segment reported a revenue decline of 24% and EBITDA decline of 27% compared to Q1 2021[13]. - Revenue decreased by 9% to 978 million compared to Q1 2021, with EBITDA margin down 12% to 79%[18]. - The operating profit for Q1 2022 was HKD 3,119 million, down 30.5% from HKD 4,482 million in Q1 2021[51]. - Basic earnings per share for Q1 2022 were HKD 2.11, compared to HKD 3.03 in Q1 2021, reflecting a decline of 30.4%[51]. - The total comprehensive income for the three months ended March 31, 2022, was HKD 2,617 million, compared to HKD 3,872 million for the same period in 2021, representing a decrease of approximately 32.4%[52]. Trading Activity - The average daily trading amount for equity securities products was HKD 126 billion, down 36% from HKD 198 billion in the same period last year[9]. - The average daily trading value was HKD 146.5 billion, down 35% from Q1 2021 but up 16% from Q4 2021[11]. - The average daily trading amount for the Stock Connect program was RMB 105.9 billion, a decrease of 16% from RMB 126.8 billion in the previous year[9]. - The average daily trading amount in the Hong Kong stock market increased by 16% to HKD 146.5 billion compared to Q4 2021, but decreased by 35% compared to Q1 2021[14]. - The average daily trading volume of derivative contracts in Q1 2022 was 1,339,149 contracts, a 5% decrease year-on-year[19]. - The average daily trading volume of the Hang Seng Tech Index futures reached 52,944 contracts in Q1 2022, over 8 times the figure from Q1 2021[24]. - The average daily trading volume of currency derivatives, specifically USD/CNY futures, increased by 33% to 9,349 contracts in Q1 2022[24]. - The average daily turnover of structured products in Q1 2022 was HKD 20.5 billion, a decrease of 22% compared to Q1 2021, while the number of new listed structured products was 15,573, down 12%[25]. Market Developments - The number of new IPO applications in Hong Kong reached over 150 as of March 31, 2022, including 10 SPAC applications[5]. - The company launched several new products in Q1 2022, including the first metaverse-themed ETF and the first carbon futures ETF[5]. - The total fundraising amount from newly listed companies in Hong Kong in Q1 2022 was HKD 14.9 billion, a decrease of 89% compared to Q1 2021[14]. - The company aims to strengthen Hong Kong's position as an international financial center and enhance market diversity[11]. - The Hong Kong Stock Exchange plans to launch a new investor relations network platform, IR Connect, in Q3 2022 to enhance communication between issuers and global investors[15]. - The Hong Kong Stock Exchange continues to explore opportunities in digital finance and sustainable development, including partnerships in carbon finance and green bond projects[16]. Operating Expenses - Operating expenses increased by 7% year-on-year to HKD 1.18 billion, driven by higher employee and promotional costs[7]. - Operating expenses rose by 7% compared to Q1 2021, attributed to increased employee costs and cash incentives for new product promotions[11]. - Operating expenses increased by 6% due to cash incentives related to new products[18]. - The group's operating expenses for Q1 2022 totaled HKD 1,178 million, an increase from HKD 1,102 million in Q1 2021[51]. Investment and Assets - The investment in collective investment plans as of March 31, 2022, was 86 billion, a decrease of 2% from December 31, 2021[43]. - The group's capital expenditure for Q1 2022 was HKD 190 million, down from HKD 331 million in Q1 2021, primarily related to the development and enhancement of various trading and settlement systems[48]. - The group's total assets pledged as non-cash collateral amounted to USD 3.499 billion (HKD 274.02 billion) as of March 31, 2022, significantly up from USD 971 million (HKD 75.70 billion) on December 31, 2021[49]. - Cash and cash equivalents increased to HKD 264,525 million as of March 31, 2022, up from HKD 181,361 million as of December 31, 2021, reflecting a growth of approximately 46%[53]. - Total assets reached HKD 622,723 million as of March 31, 2022, compared to HKD 399,304 million as of December 31, 2021, indicating an increase of approximately 56%[53]. - Total liabilities amounted to HKD 575,416 million as of March 31, 2022, up from HKD 349,394 million as of December 31, 2021, which is an increase of approximately 64.7%[53]. Regulatory and Strategic Initiatives - The group has committed to promoting sustainable and green finance through the STAGE platform, enhancing communication with stakeholders[46]. - The group continues to monitor global geopolitical risks and their potential impacts on business continuity and regulatory assessments[46]. - The company adopted new/revised HKFRSs in 2022, which did not have any financial impact on the group[54]. - The estimated useful life of certain computer hardware and software was changed from three years to three to five years, resulting in a reduction of depreciation expense by HKD 8 million for the first quarter of 2022[54].

Financial Performance - In 2021, Hong Kong Exchanges and Clearing Limited (HKEX) achieved record high revenue and profit despite challenging macroeconomic conditions and ongoing pandemic impacts [4]. - Revenue and other income for 2021 reached HKD 20,950 million, an increase of 9% compared to 2020 [10]. - Main business revenue rose by 10% to HKD 20,103 million, driven by record average daily trading volumes [10]. - EBITDA for 2021 was HKD 16,269 million, reflecting an 11% increase from 2020, with an EBITDA margin of 78% [10]. - Shareholders' profit attributable increased by 9% to HKD 12,535 million, marking a new high [10]. - The total revenue and other income for the group reached HKD 21 billion in 2021, an increase of 9% compared to 2020, leading to a record profit attributable to shareholders of HKD 12.5 billion, also up by 9% [19]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 20% year-over-year growth [46]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth [51]. - Total revenue and other income amounted to HKD 3,436 million in 2021, reflecting a 6% increase from HKD 3,241 million in 2020 [96]. - Total revenue for 2021 reached 20,950 million, an increase of 9.2% from 19,190 million in 2020 [185]. Trading Volume and Market Activity - The trading volume for the cash market, Stock Connect, and Bond Connect reached new highs, offsetting the impact of low interest rates on investment income [4]. - The average daily trading volume in the cash market increased significantly, contributing to overall revenue growth [4]. - Average daily turnover of equity securities on the exchange reached HKD 146.6 billion, a 32% increase from 2020 [11]. - The average daily turnover of the Stock Connect program reached HKD 120.1 billion, up 32% year-on-year [11]. - In 2021, the average daily trading volume reached HKD 166.7 billion, a 29% increase from 2020, setting a new record [28]. - The average daily trading volume for bond connect Northbound reached RMB 26.6 billion, a 34% increase from 2020 [28]. - The average daily trading volume of Hong Kong stock ETFs nearly doubled from HKD 2.8 billion in 2020 to HKD 5.4 billion in 2021 [37]. - The average daily trading volume of ETPs (including ETFs and leveraged and inverse products) increased by 20% to HKD 7.7 billion in 2021, compared to HKD 6.4 billion in 2020 [37]. - The average daily trading volume of derivatives contracts increased by 26% in 2021 compared to 2020 [68]. - The average daily trading amount for stock products reached 166.7 billion HKD in 2021, a 29% increase compared to 2020 [77]. Product Development and Innovation - HKEX received numerous listing applications and launched new listing regimes for Special Purpose Acquisition Companies (SPACs) and overseas issuers, enhancing its product offerings [4]. - HKEX introduced various new products, including Hang Seng Tech Index options and new cash-settled futures contracts on LME, to diversify its offerings [6]. - The company launched the first A-share derivative product, the MSCI China A50 Connect Index Futures, enhancing product offerings in the market [18]. - The company plans to introduce non-HKD denominated futures and options trading and settlement services during public holidays in 2022 [22]. - The launch of the MSCI China A50 Connect Index Futures in October 2021 expanded the Chinese A-share ecosystem in Hong Kong, with significant market response on its first trading day [32]. - The company continues to focus on market connectivity and product innovation to maintain its competitive position in the global capital markets [18]. - The Hong Kong Stock Exchange has expanded its product ecosystem, including the introduction of new MSCI China A50 index futures and small USD/CNY futures contracts [33]. - The launch of the new FINI platform in Q4 2022 is expected to simplify and digitize the IPO settlement process, improving the situation of large amounts of pre-paid funds being frozen during subscription periods [38]. Sustainability and Corporate Social Responsibility - The company is committed to achieving net-zero emissions by 2050 and has joined the Glasgow Financial Alliance for Net Zero [8]. - HKEX launched the ESG Academy and various community projects to enhance its corporate social responsibility initiatives [8]. - The company joined the Glasgow Financial Alliance for Net Zero and the Net Zero Financial Service Providers Alliance, committing to sustainable development goals [21]. - The Hong Kong Stock Exchange Charity Fund raised HKD 139 million in 2021 to support various community projects and charities [23]. - The company published the "Net Zero Emissions Guide" to assist issuers and other businesses in their journey towards net-zero emissions [38]. - The company is committed to expanding its sustainable finance ecosystem, with continuous growth in the number of GSS bonds listed [38]. - The total issuance of green/ESG-related bonds reached HKD 282.6 billion in 2021, compared to HKD 66.7 billion in 2020 [81]. - The Sustainable and Green Exchange (STAGE) had 87 products focused on sustainability by December 31, 2021, reflecting strong market support since its establishment [82]. Governance and Management - The board consists of 13 directors, with 12 being independent directors and 4 being female, aiming for gender equality [188]. - The board and committees held a total of 48 meetings in 2021, demonstrating active governance practices [188]. - The company adhered to all provisions of the Corporate Governance Code effective during 2021, with specific exceptions noted [189]. - The board's composition includes a diverse range of skills and experiences, enhancing its effectiveness and efficiency [195]. - The company emphasizes the importance of good governance and effective board performance for overall corporate health [198]. - The establishment of the International Advisory Committee and the China Business Advisory Committee aims to enhance the board's insights on global and Chinese financial markets [199]. - An internal review of the board's performance was conducted in 2021, with results indicating effective operation and good governance across various committees [200]. Future Outlook and Strategic Initiatives - The company is focused on expanding its role as a "super connector" in the rapidly evolving global capital markets [4]. - The company plans to leverage its position as a "super connector" to participate in technology and industry development opportunities in the future [66]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share by the end of the year [46]. - The company is exploring potential acquisitions to enhance its product offerings, with a budget of $500 million allocated for this purpose [48]. - A new strategic partnership has been established, expected to generate $200 million in additional revenue streams [49]. - The company has set a future outlook with a revenue guidance of $6 billion for the upcoming fiscal year, indicating a growth of 20% [55]. - The company plans to increase its workforce by 10% to support growth initiatives and new projects [55]. - The management team emphasized the importance of risk management, with a focus on mitigating potential market volatility impacts [61].