HKEX(00388)2024-10-23 04:00Financial Performance - For the first nine months of 2024, the group's revenue and profit reached the second-highest record in history, with revenue of HKD 5.372 billion, a 6% increase from HKD 5.084 billion in the same period of 2023[2]. - In Q3 2024, total revenue and other income decreased by 1% to 5,372 million HKD compared to Q2 2024, with main business revenue down 4% to 4,852 million HKD[8]. - For the first three quarters of 2024, total revenue and other income reached 15,993 million HKD, a 2% increase from 15,659 million HKD in the same period of 2023[11]. - The company reported a shareholder profit of 3,145 million HKD in Q3 2024, remaining stable compared to Q2 2024[10]. - Total revenue and other income for the first three quarters of 2024 was HKD 16 billion, a 2% increase from the same period in 2023, attributed to increased trading and settlement fees[15]. - The profit attributable to shareholders for the nine months ended September 30, 2024, was HKD 9.270 billion, compared to HKD 9.265 billion in the same period of 2023[55]. - Total comprehensive income for the nine months ended September 30, 2024, was 9,517 million HKD, compared to 9,345 million HKD for the same period in 2023, reflecting an increase of 1.84%[56]. Trading Volume and Market Activity - The average daily trading volume of the Stock Connect (Shanghai and Shenzhen) reached a nine-month high, with an average daily trading amount of RMB 110.3 billion, up 4% from RMB 106.1 billion in the previous year[3]. - The average daily trading amount of the Hong Kong Stock Connect increased by 37% to HKD 39.6 billion, compared to HKD 29.0 billion in the same period last year[6]. - The average daily trading volume for equity securities on the exchange decreased by 4% to 107.2 billion HKD in Q3 2024 compared to Q2 2024[9]. - The average daily trading volume for derivatives increased by 18% to 11.6 billion HKD in Q3 2024 compared to Q2 2024[9]. - The average daily trading volume for the first three quarters of 2024 increased by 3% compared to the same period in 2023, with derivatives contracts up 12% and LME fee-paying metal contracts up 25%[14]. - The average daily trading volume for the LME fee-paying metal contracts reached a new high, reflecting strong market activity[14]. - The average daily trading volume for ETPs reached a nine-month high of RMB 154 billion, an 8% increase from RMB 142 billion in the first three quarters of 2023[22]. Investment Income - The company's net investment income increased by 41% to HKD 507 million, up from HKD 360 million in the third quarter of 2023[5]. - The net investment income from company funds increased by 39% to 507 million HKD in Q3 2024, up from 366 million HKD in Q2 2024[8]. - The net investment income from company funds rose by 20% to 1,408 million HKD in the first three quarters of 2024, compared to 1,177 million HKD in the same period of 2023[11]. - The total net investment income from margin and clearing house funds was HKD 2.32 billion in the first three quarters of 2024, down from HKD 2.71 billion in the same period of 2023[48]. Operating Expenses - Operating expenses decreased by 1% to 1,365 million HKD in Q3 2024, primarily due to reduced charitable donations, although professional fees increased[8]. - Operating expenses increased by 6% to 4,159 million HKD in the first three quarters of 2024, driven by higher employee and IT costs[11]. - Operating expenses rose to HKD 4.2 billion in the first three quarters of 2024, a 6% increase from the previous year, primarily due to higher employee costs and IT expenses[15]. - Operating expenses (excluding charitable donations) increased by 4% in the first three quarters of 2024, attributed to salary adjustments and strategic hiring[45]. Capital Expenditure - Capital expenditure increased by 26% to HKD 415 million, compared to HKD 329 million in the previous year[5]. - Capital expenditure for the first three quarters of 2024 was HKD 1.027 billion, compared to HKD 0.830 billion in the same period of 2023[50]. - As of September 30, 2024, the group's capital expenditure commitments amounted to HKD 1.506 billion, slightly down from HKD 1.555 billion on December 31, 2023[50]. Market Developments and Future Plans - The company successfully implemented measures to maintain normal trading in adverse weather conditions, reinforcing its position as a leading international trading and risk management center[2]. - The company plans to continue enhancing the vitality, resilience, and competitiveness of the Hong Kong market, focusing on product enrichment and international partnerships[2]. - The company plans to continue expanding its market presence and enhancing its technology infrastructure to support future growth[15]. - The Hong Kong Stock Exchange implemented measures to enhance market transparency and compliance culture during the third quarter of 2024[23]. Shareholder Information - The group does not intend to declare a dividend for the third quarter of 2024, consistent with the previous year[54]. - Basic earnings per share for the nine months ended September 30, 2024, was HKD 7.33, compared to HKD 7.32 in the same period of 2023[55]. Assets and Liabilities - The company's total assets reached 485,458 million HKD as of September 30, 2024, a significant increase from 341,179 million HKD as of December 31, 2023, representing a growth of 42.25%[57]. - The company’s liabilities totaled 434,334 million HKD as of September 30, 2024, up from 289,383 million HKD at the end of 2023, marking a rise of 50.14%[57]. - Cash and cash equivalents amounted to 227,757 million HKD as of September 30, 2024, compared to 125,107 million HKD at the end of 2023, showing an increase of 82.06%[57]. Compliance and Regulatory Matters - The consultation period for proposed amendments to the listing rules, aimed at aligning Hong Kong practices with global standards, ended on October 18, 2024[23]. - LME received 33 responses to its consultation on the EU Carbon Border Adjustment Mechanism (CBAM) and plans to require approved aluminum brands to report emissions data according to CBAM methods[37].