HKEX(00388)2024-09-02 04:00Financial Performance - In the first half of 2024, the total revenue and other income of HKEX was HKD 10.621 billion, remaining stable compared to HKD 10.575 billion in the same period of 2023[14]. - Shareholder profit attributable to the company was HKD 6.125 billion, a decrease of 3% from HKD 6.312 billion in the first half of 2023[15]. - The EBITDA margin for the first half of 2024 was 73%, down 2 percentage points from the same period in 2023[14]. - The basic earnings per share for the first half of 2024 was HKD 4.84, down 3% from HKD 4.99 in the same period of 2023[15]. - Total revenue and other income for Q2 2024 reached HKD 54.20 billion, an 8% increase from HKD 50.17 billion in Q2 2023, driven by higher trading volumes in spot and derivative markets[17]. - Net profit attributable to shareholders for Q2 2024 was HKD 31.55 billion, reflecting a 9% increase from HKD 28.94 billion in Q2 2023[17]. - The EBITDA margin for Q2 2024 was 74%, up 1 percentage point from the same quarter last year[17]. - Revenue and other income for the first half of 2024 decreased by 2% to HKD 10,621 million compared to the same period in 2023, primarily due to a decline in average daily trading volume of equity securities products[42]. - The operating profit for the first half of 2024 was HKD 6,963 million, compared to HKD 6,312 million for the same period in 2023[85]. - The profit for the period was HKD 6,186 million, down 2.9% from HKD 6,368 million in the previous year[139]. Trading Volume and Market Activity - The average daily trading volume of LME's metal contracts increased by 29% year-on-year in the first half of 2024[5]. - The number of new listings and fundraising amounts in the second quarter rose by 50% and 79% respectively compared to the first quarter of 2024[5]. - For the six months ended June 30, 2024, the average daily trading amount of equity securities on the exchange was HKD 100.3 billion, a decrease of 3% compared to HKD 102.9 billion for the same period in 2023[16]. - The average daily trading amount of derivatives, including warrants and callable bull/bear contracts, was HKD 10.1 billion, down 20% from HKD 12.6 billion year-over-year[16]. - The average daily trading amount for the Stock Connect (Shanghai and Shenzhen) was RMB 130.2 billion, a 19% increase from RMB 109.3 billion in the previous year[16]. - The average daily trading amount for the Hong Kong Stock Connect was HKD 37.5 billion, an 11% increase from HKD 33.8 billion year-over-year[16]. - The average daily trading volume of LME fee-paying metal contracts increased by 29% year-on-year, reflecting a strong market performance[28]. - The average daily trading volume of stock options contracts increased by 16% to 747,000 contracts compared to the previous quarter[22]. - The average daily trading volume of derivative contracts reached a new high, increasing by 12% compared to the first half of 2023[39]. - The average daily trading volume of southbound and northbound ETFs reached HKD 1.5 billion and RMB 1.1 billion, respectively, in the first half of 2024[50]. Operating Expenses and Costs - Operating expenses increased by 7% to HKD 2.794 billion, driven by higher employee and IT costs[14]. - Operating expenses increased by 5% in Q2 2024, primarily due to higher employee and IT costs, although some legal costs related to the nickel market incident were partially recovered[17]. - Employee-related expenses rose by 13% to HKD 1,937 million, primarily due to salary adjustments and one-time retirement benefits for senior management[80]. - IT maintenance costs increased by 10% to HKD 421 million, attributed to system upgrades and inflation adjustments during renewals[81]. - Total operating expenses increased by 7% to HKD 2,794 million for the six months ended June 30, 2024, compared to HKD 2,622 million for the same period in 2023[80]. Capital Expenditure and Investments - Capital expenditure for Q2 2024 was HKD 334 million, representing a 28% increase from HKD 261 million in Q2 2023[18]. - Capital expenditures for the first half of 2024 amounted to HKD 0.612 billion, an increase from HKD 0.501 billion in the same period of 2023, focusing on the development of trading and settlement systems[97]. - The company plans to launch a new derivatives product platform by 2028 to enhance trading, clearing, and risk management capabilities[31]. - The company committed to achieving carbon neutrality by 2024 and net-zero emissions by 2040, with a donation of HKD 74 million to support social initiatives in the first half of 2024[32]. Regulatory and Compliance - The exchange plans to implement measures for trading during adverse weather conditions starting September 23, 2024, enhancing market resilience[30]. - The exchange is optimizing its ESG framework for climate information disclosure, effective January 1, 2025, to align with international standards[29]. - A consultation document was issued on June 28, 2024, proposing to lower the minimum price fluctuation for stocks in the Hong Kong securities market to improve liquidity and competitiveness[47]. - The exchange implemented measures to enhance market surveillance and compliance, including the completion of the 2023 compliance assessment and the launch of the 2024 annual plan[53]. Shareholder Information - The board declared an interim dividend of HKD 4.36 per share for the year ending December 31, 2024[126]. - The interim dividend payment will be issued on September 17, 2024[126]. - The company encourages shareholders to view communications electronically to support environmental sustainability[130]. - The total number of shares granted under the share award scheme since its adoption is 18,223,863 shares, accounting for approximately 1.7% of the total issued shares as of the adoption date[121]. Strategic Initiatives and Future Outlook - The company announced a significant technology investment project to develop the "Navigator Star Derivatives Platform" to enhance market competitiveness[5]. - The company is actively expanding the list of eligible assets for structured products, aiming to enhance market efficiency and liquidity[64]. - The company is committed to adhering to the ISSB climate-related disclosure standards, which were released in June 2023[198]. - The HKEX is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[198].