香港交易所(00388) - 2025 - 中期业绩

Introduction and Company Information This section provides an overview of the company's regulatory context and key information regarding its board of directors Regulatory Disclaimer This document's content is regulated by the Hong Kong Securities and Futures Commission, which is not responsible for its accuracy or completeness, nor does it bear any loss arising from reliance on its content - The Hong Kong SFC regulates this document but is not responsible for its accuracy or completeness, nor does it bear any losses[1] Company and Board Information Hong Kong Exchanges and Clearing Limited (HKEX) published its condensed consolidated financial statements for the six months ended June 30, 2025, with a Board comprising 12 independent non-executive directors and one executive director (Group Chief Executive) - HKEX published its condensed consolidated financial statements for the six months ended June 30, 2025[2] - The Board of Directors consists of 12 independent non-executive directors and one executive director (Group Chief Executive)[3] Condensed Consolidated Income Statement This section presents the Group's financial performance, highlighting significant revenue and profit growth, alongside increased operating and tax expenses Income Statement Summary For the six months ended June 30, 2025, HKEX's revenue and other income significantly increased, with profit for the period substantially rising year-on-year, driven by growth in transaction and trading system usage fees, clearing and settlement fees, and net investment income, while operating expenses and tax expenses (due to minimum top-up tax) also increased - Revenue and other income increased by 32.5% from HKD 10,621 million in 2024 to HKD 14,076 million in 2025[4] - Profit for the period increased by 38.4% from HKD 6,186 million in 2024 to HKD 8,562 million in 2025[4] - Taxation increased by 109.1% from HKD 766 million in 2024 to HKD 1,602 million in 2025, primarily due to the Hong Kong minimum top-up tax[4] Key Financial Data from Condensed Consolidated Income Statement | Metric | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 11,034 | 8,062 | 36.9% | | Net investment income | 2,875 | 2,521 | 14.0% | | Revenue and other income | 14,076 | 10,621 | 32.5% | | Transaction-related expenses | (164) | (166) | -1.2% | | Operating expenses | (2,973) | (2,794) | 6.4% | | EBITDA | 10,939 | 7,661 | 42.8% | | Operating profit | 10,196 | 6,963 | 46.4% | | Profit before tax | 10,164 | 6,952 | 46.2% | | Taxation | (1,602) | (766) | 109.1% | | Profit for the period | 8,562 | 6,186 | 38.4% | | Profit attributable to HKEX shareholders | 8,519 | 6,125 | 39.1% | | Basic earnings per share (HKD) | 6.74 | 4.84 | 39.2% | | Diluted earnings per share (HKD) | 6.72 | 4.83 | 39.1% | Condensed Consolidated Statement of Comprehensive Income This section details the Group's total comprehensive income, reflecting strong profit growth and a positive shift in other comprehensive income components Comprehensive Income Overview For the six months ended June 30, 2025, the Group's total comprehensive income significantly increased, primarily due to a substantial rise in profit for the period and a shift from loss to positive gain in other comprehensive income, notably from currency translation differences of overseas subsidiaries and fair value changes of financial assets measured at fair value - Profit for the period increased by 38.4% from HKD 6,186 million in 2024 to HKD 8,562 million in 2025[5] - Other comprehensive income shifted from a loss of HKD 7 million in 2024 to a gain of HKD 483 million in 2025[5] - Total comprehensive income increased by 46.4% from HKD 6,179 million in 2024 to HKD 9,045 million in 2025[5] Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 8,562 | 6,186 | 38.4% | | Other comprehensive income | 483 | (7) | Significant growth | | - Currency translation differences of overseas subsidiaries | 198 | (18) | Significant growth | | - Cash flow hedges (net of tax) | 70 | (3) | Significant growth | | - Financial assets measured at fair value through other comprehensive income: fair value changes (net of tax) | 199 | 14 | 1321.4% | | Total comprehensive income | 9,045 | 6,179 | 46.4% | | Total comprehensive income attributable to HKEX shareholders | 9,000 | 6,119 | 47.1% | Condensed Consolidated Statement of Financial Position This section outlines the Group's financial position, showing growth in total assets, liabilities, and equity, reflecting a strengthened financial foundation Financial Position Overview As of June 30, 2025, the Group's total assets and liabilities both increased, with significant rises in cash and cash equivalents, financial assets measured at amortized cost, and liabilities such as margin deposits from participants, while total equity also grew steadily, reflecting the company's continuously strengthening financial foundation - Total assets increased by 11.3% from HKD 381,629 million as of December 31, 2024, to HKD 424,872 million as of June 30, 2025[6] - Total liabilities increased by 12.3% from HKD 327,222 million as of December 31, 2024, to HKD 367,421 million as of June 30, 2025[6] - Total equity increased by 5.6% from HKD 54,407 million as of December 31, 2024, to HKD 57,451 million as of June 30, 2025[6] Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and cash equivalents | 173,897 | 134,365 | 29.4% | | Financial assets measured at fair value through profit or loss | 2,842 | 7,558 | -62.4% | | Financial assets measured at fair value through other comprehensive income | 44,117 | 50,704 | -12.9% | | Financial assets measured at amortized cost | 68,662 | 43,610 | 57.4% | | Derivative financial instruments (assets) | 58,848 | 67,747 | -13.0% | | Accounts receivable, prepayments and deposits | 51,681 | 54,497 | -5.2% | | Goodwill and other intangible assets | 19,939 | 19,605 | 1.7% | | Property, plant and equipment | 1,651 | 1,504 | 9.8% | | Right-of-use assets | 2,529 | 1,174 | 115.4% | | Total assets | 424,872 | 381,629 | 11.3% | | Liabilities | | | | | Derivative financial instruments (liabilities) | 58,920 | 67,863 | -13.1% | | Margin deposits from participants, Mainland China securities and clearing margins, and cash collateral | 234,508 | 188,857 | 24.2% | | Accounts payable, accruals and other liabilities | 39,561 | 37,584 | 5.3% | | Current tax liabilities | 2,003 | 1,321 | 51.6% | | Participants' contributions to clearing house funds | 28,631 | 27,124 | 5.6% | | Lease liabilities | 873 | 1,294 | -32.6% | | Total liabilities | 367,421 | 327,222 | 12.3% | | Equity | | | | | Equity attributable to HKEX shareholders | 56,910 | 53,852 | 5.7% | | Non-controlling interests | 541 | 555 | -2.6% | | Total equity | 57,451 | 54,407 | 5.6% | Condensed Consolidated Statement of Changes in Equity This section presents the changes in the Group's equity, detailing the impact of profit, other comprehensive income, and dividend distributions Equity Changes H1 2025 As of June 30, 2025, equity attributable to HKEX shareholders increased from HKD 53,852 million at the beginning of the year to HKD 56,910 million, primarily driven by profit for the period and total comprehensive income, despite the distribution of the second interim dividend for 2024 - Equity attributable to HKEX shareholders increased from HKD 53,852 million as of January 1, 2025, to HKD 56,910 million as of June 30, 2025[7] - Profit for the period was HKD 8,519 million, and other comprehensive income was HKD 481 million[7] - A second interim dividend of HKD 6,193 million for 2024 was distributed[7] Overview of Equity Changes H1 2025 | Metric | January 1, 2025 (HKD Million) | June 30, 2025 (HKD Million) | Change (HKD Million) | | :--- | :--- | :--- | :--- | | Equity attributable to HKEX shareholders | 53,852 | 56,910 | 3,058 | | Non-controlling interests | 555 | 541 | (14) | | Total equity | 54,407 | 57,451 | 3,044 | | Key changes: | | | | | Profit for the period | - | 8,519 | 8,519 | | Other comprehensive income | - | 481 | 481 | | Second interim dividend for 2024 | - | (6,193) | (6,193) | | Share-based employee compensation benefits | - | 190 | 190 | Equity Changes H1 2024 As of June 30, 2024, equity attributable to HKEX shareholders increased from HKD 51,344 million at the beginning of the year to HKD 52,708 million, primarily due to profit for the period, partially offset by the distributed second interim dividend for 2023 - Equity attributable to HKEX shareholders increased from HKD 51,344 million as of January 1, 2024, to HKD 52,708 million as of June 30, 2024[8] - Profit for the period was HKD 6,125 million, and other comprehensive income/(loss) was a loss of HKD 6 million[8] - A second interim dividend of HKD 4,944 million for 2023 was distributed[8] Overview of Equity Changes H1 2024 | Metric | January 1, 2024 (HKD Million) | June 30, 2024 (HKD Million) | Change (HKD Million) | | :--- | :--- | :--- | :--- | | Equity attributable to HKEX shareholders | 51,344 | 52,708 | 1,364 | | Non-controlling interests | 452 | 512 | 60 | | Total equity | 51,796 | 53,220 | 1,424 | | Key changes: | | | | | Profit for the period | - | 6,125 | 6,125 | | Other comprehensive income/(loss) | - | (6) | (6) | | Second interim dividend for 2023 | - | (4,944) | (4,944) | | Share-based employee compensation benefits | - | 206 | 206 | Condensed Consolidated Cash Flow Statement This section presents the Group's cash flow activities, showing significant growth in operating cash flow, a shift to net outflow from investing activities, and increased financing outflows for dividends Cash Flow Overview For the six months ended June 30, 2025, the Group's net cash inflow from operating activities significantly increased, net cash outflow from investing activities was primarily impacted by the acquisition of HKEX headquarters property, and net cash outflow from financing activities was mainly for dividend payments, resulting in a notable increase in cash and cash equivalents at period-end - Net cash inflow from operating activities increased by 152.7% from HKD 5,697 million in 2024 to HKD 14,399 million in 2025[9] - Net cash (outflow)/inflow from investing activities shifted from an inflow of HKD 3,572 million in 2024 to an outflow of HKD 3,457 million in 2025, primarily due to the payment of HKD 2,559 million for the acquisition of HKEX headquarters property[9] - Net cash outflow from financing activities increased by 25.0% from HKD 5,141 million in 2024 to HKD 6,427 million in 2025, mainly for dividend payments of HKD 6,169 million to HKEX shareholders[9] Key Data from Condensed Consolidated Cash Flow Statement | Metric | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities (non-HKFRS measure) | 10,069 | 5,852 | 72.1% | | Net cash inflow from operating activities | 14,399 | 5,697 | 152.7% | | Net cash (outflow)/inflow from investing activities | (3,457) | 3,572 | Significant change | | - Payments for acquisition of HKEX headquarters property | (2,559) | - | N/A | | Net cash outflow from financing activities | (6,427) | (5,141) | 25.0% | | - Dividends paid to HKEX shareholders | (6,169) | (4,923) | 25.3% | | Net increase in cash and cash equivalents | 4,515 | 4,128 | 9.4% | | Cash and cash equivalents at June 30 | 18,470 | 13,334 | 38.5% | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes on the Group's financial statements, covering accounting policies, segment performance, and specific financial items Note 1 Basis of Preparation These condensed consolidated financial statements are prepared in accordance with HKAS 34 and should be read in conjunction with the 2024 annual consolidated financial statements, with financial information for the year ended December 31, 2024, derived from the statutory annual consolidated financial statements and an unqualified auditor's report - These financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[10] - Financial information for the year ended December 31, 2024, is derived from the statutory annual consolidated financial statements, and the auditor's report was unqualified[10] Note 2 Accounting Policies The accounting policies adopted in these financial statements are consistent with those in the 2024 annual consolidated financial statements; new/amended HKFRS accounting standards (e.g., HKFRS 19, HKFRS 7, and HKFRS 9 amendments) are not expected to have a significant impact on the Group, but the impact of HKFRS 18 adoption, particularly on income statement structure and management performance indicator disclosures, is still being assessed - The accounting policies used in preparing these condensed consolidated financial statements are consistent with those in the 2024 annual consolidated financial statements[11] - Amendments to HKFRS 19, HKFRS 7, and HKFRS 9, along with annual improvements to HKFRS accounting standards, are not expected to have any significant impact on the Group[12] - HKFRS 18 will replace HKAS 1, introducing new requirements to enhance comparability and transparency of financial performance, with no impact on profit attributable to Group shareholders, and the Group is still assessing its impact on the income statement structure and disclosure of management performance indicators[13] Note 3 Operating Segments The Group classifies its business into four operating segments—Cash, Equity Securities and Financial Derivatives, Commodities, and Data and Connectivity—based on internal management reports reviewed by the chief operating decision maker, with EBITDA used to assess segment performance; in H1 2025, all segments achieved revenue growth, with the Cash segment contributing the most to EBITDA - The Group's operating segments include: Cash, Equity Securities and Financial Derivatives, Commodities, and Data and Connectivity[14][15] - The chief operating decision maker assesses the performance of each operating segment based on its EBITDA[16] H1 2025 Segment Revenue and EBITDA Performance | Segment | Revenue (HKD Million) | Revenue Share (%) | EBITDA (HKD Million) | EBITDA Share (%) | | :--- | :--- | :--- | :--- | :--- | | Cash | 6,502 | 58.9% | 6,063 | 55.4% | | Equity Securities and Financial Derivatives | 2,010 | 18.2% | 2,932 | 26.8% | | Commodities | 1,411 | 12.8% | 797 | 7.3% | | Data and Connectivity | 1,103 | 10.0% | 895 | 8.2% | | Corporate Items | 8 | 0.1% | 252 | 2.3% | | Group Total | 11,034 | 100% | 10,939 | 100% | H1 2025 Segment Revenue and EBITDA YoY Change | Segment | 2025 Revenue (HKD Million) | 2024 Revenue (HKD Million) | Revenue YoY Change (%) | 2025 EBITDA (HKD Million) | 2024 EBITDA (HKD Million) | EBITDA YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash | 6,502 | 4,005 | 62.3% | 6,063 | 3,505 | 73.0% | | Equity Securities and Financial Derivatives | 2,010 | 1,704 | 18.0% | 2,932 | 2,494 | 17.6% | | Commodities | 1,411 | 1,299 | 8.6% | 797 | 816 | -2.3% | | Data and Connectivity | 1,103 | 1,045 | 5.6% | 895 | 840 | 6.5% | | Corporate Items | 8 | 9 | -11.1% | 252 | 6 | Significant growth | Note 4 Transaction and Trading System Usage Fees For the six months ended June 30, 2025, total transaction and trading system usage fees significantly increased, primarily driven by a substantial rise in equity securities transaction fees traded on SEHK and through Stock Connect, with derivative warrants, callable bull/bear contracts, and warrants also showing significant growth - Total transaction and trading system usage fees increased by 49.1% from HKD 3,290 million in 2024 to HKD 4,906 million in 2025[18] - Transaction fees for equity securities traded on SEHK and through Stock Connect increased by 99.6% from HKD 1,424 million in 2024 to HKD 2,842 million in 2025[18] Composition of Transaction and Trading System Usage Fees | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Equity securities traded on SEHK and through Stock Connect | 2,842 | 1,424 | 99.6% | | Derivative warrants, callable bull/bear contracts and warrants traded on SEHK | 307 | 187 | 64.2% | | Futures and options contracts traded on SEHK and HKFE | 991 | 954 | 3.9% | | Commodity contracts traded on LME and Qianhai Mercantile Exchange | 766 | 725 | 5.7% | | Total | 4,906 | 3,290 | 49.1% | Note 5 Net Investment Income For the six months ended June 30, 2025, net investment income increased, primarily due to higher total interest income from financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income, which offset net foreign exchange swap losses - Net investment income increased by 14.0% from HKD 2,521 million in 2024 to HKD 2,875 million in 2025[19] - Total interest income from financial assets measured at amortized cost was HKD 3,605 million (2024: HKD 4,800 million), and total interest income from financial assets measured at fair value through other comprehensive income was HKD 1,125 million (2024: HKD 613 million)[19] - Net foreign exchange swap losses were HKD 89 million (2024: HKD 81 million), offset by interest income from higher-yielding deposits[19] Composition of Net Investment Income | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total interest income from financial assets measured at amortized cost | 3,605 | 4,800 | -24.9% | | Total interest income from financial assets measured at fair value through other comprehensive income | 1,125 | 613 | 83.5% | | Interest returned to participants | (2,121) | (3,015) | -29.7% | | Net interest income | 2,609 | 2,398 | 8.8% | | Net gains/(losses) from financial assets measured at fair value through other comprehensive income | 72 | - | N/A | | Net gains/(losses) from financial assets mandatorily measured at fair value and derivative financial instruments | 122 | 120 | 1.7% | | Other exchange differences | 72 | 3 | 2300.0% | | Net investment income | 2,875 | 2,521 | 14.0% | Note 6 Transaction Related Expenses Transaction-related expenses, including license fees, bank charges, and other costs directly varying with trading and settlement activities, slightly decreased this period - Transaction-related expenses include license fees, bank charges, and other costs directly varying with trading and settlement activities[20] - For the six months ended June 30, 2025, transaction-related expenses were HKD 164 million, slightly lower than HKD 166 million in 2024[4] Note 7 Employee Costs and Related Expenses For the six months ended June 30, 2025, employee costs and related expenses slightly increased, primarily driven by growth in salaries and other short-term employee benefits and termination benefits, while share-based employee compensation benefits decreased - Total employee costs and related expenses increased by 0.8% from HKD 1,937 million in 2024 to HKD 1,952 million in 2025[21] - Salaries and other short-term employee benefits increased from HKD 1,592 million in 2024 to HKD 1,604 million in 2025, while share-based employee compensation benefits decreased from HKD 206 million to HKD 190 million[21] Composition of Employee Costs and Related Expenses | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Salaries and other short-term employee benefits | 1,604 | 1,592 | 0.8% | | Share-based employee compensation benefits under HKEX Share Award Scheme | 190 | 206 | -7.8% | | Termination benefits | 32 | 18 | 77.8% | | Retirement benefit expenses | 126 | 121 | 4.1% | | Total | 1,952 | 1,937 | 0.8% | Note 8 Finance Costs For the six months ended June 30, 2025, finance costs decreased, primarily due to a reduction in interest on lease liabilities and negative interest on JPY deposits - Total finance costs decreased by 17.0% from HKD 59 million in 2024 to HKD 49 million in 2025[22] - Interest on lease liabilities decreased from HKD 28 million in 2024 to HKD 22 million in 2025, and negative interest on JPY deposits decreased from HKD 3 million to HKD 0 million[22] Composition of Finance Costs | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on borrowings | 2 | 2 | 0.0% | | Interest on lease liabilities | 22 | 28 | -21.4% | | Bank facility commitment fees | 25 | 26 | -3.8% | | Negative interest on JPY deposits | - | 3 | -100.0% | | Total | 49 | 59 | -17.0% | Note 9 Taxation For the six months ended June 30, 2025, tax expenses significantly increased, primarily due to the recognition of Hong Kong minimum top-up tax, leading to a substantial rise in Hong Kong profits tax and total current tax; the Group is objecting to additional tax assessment notices regarding offshore profit exemption for Stock Connect transactions - Total tax expenses increased by 109.1% from HKD 766 million in 2024 to HKD 1,602 million in 2025[23] - Hong Kong minimum top-up tax was HKD 363 million (2024: zero), as the effective tax rate for Hong Kong entities was below 15%[23] - The Group is objecting to additional tax assessment notices issued by the Hong Kong Inland Revenue Department regarding offshore profit exemption for Stock Connect transactions[24] Composition of Tax Expenses | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong profits tax | 1,047 | 611 | 71.4% | | Hong Kong minimum top-up tax | 363 | - | N/A | | Taxation outside Hong Kong | 174 | 179 | -2.8% | | Total current tax | 1,584 | 790 | 100.5% | | Deferred tax | 18 | (24) | Significant change | | Tax expenses | 1,602 | 766 | 109.1% | Note 10 Earnings Per Share For the six months ended June 30, 2025, both basic and diluted earnings per share significantly increased, reflecting strong performance in profit attributable to shareholders - Basic earnings per share increased by 39.2% from HKD 4.84 in 2024 to HKD 6.74 in 2025[25] - Diluted earnings per share increased by 39.1% from HKD 4.83 in 2024 to HKD 6.72 in 2025[26] Earnings Per Share Data | Metric | As of June 30, 2025 | As of June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to shareholders (HKD Million) | 8,519 | 6,125 | 39.1% | | Weighted average number of shares outstanding less shares held for share award scheme (thousand shares) | 1,263,911 | 1,264,558 | -0.1% | | Basic earnings per share (HKD) | 6.74 | 4.84 | 39.2% | | Weighted average number of shares for diluted earnings per share (thousand shares) | 1,267,621 | 1,267,742 | -0.01% | | Diluted earnings per share (HKD) | 6.72 | 4.83 | 39.1% | Note 11 Dividends As of June 30, 2025, declared interim dividends significantly increased, reflecting the company's enhanced profitability - Interim dividend declared as of June 30 was HKD 6.00 per share (2024: HKD 4.36 per share), totaling HKD 7,607 million (2024: HKD 5,528 million), an increase of 37.6%[27] Interim Dividend Declaration | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interim dividend declared as of June 30 | 7,607 | 5,528 | 37.6% | | Less: Dividends on shares held for share award scheme as of June 30 | (24) | (15) | 60.0% | | Total | 7,583 | 5,513 | 37.6% | Note 12 Financial Assets As of June 30, 2025, the Group's total financial assets significantly increased, primarily driven by higher cash and cash equivalents for margins and corporate funds, as well as financial assets measured at amortized cost; financial assets are held for specific purposes, and some cannot be used to fund other Group activities - Total financial assets increased by 14.6% from HKD 303,984 million as of December 31, 2024, to HKD 348,366 million as of June 30, 2025[28] - Financial assets for margins increased by 31.1% from HKD 168,455 million as of December 31, 2024, to HKD 220,792 million as of June 30, 2025[28] - Certain cash and cash equivalents (e.g., margins, clearing house funds, A-share cash) are held for specific purposes and cannot be used to fund other Group activities[29] Composition of Financial Assets | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 173,897 | 134,365 | 29.4% | | Financial assets measured at fair value through profit or loss | 2,842 | 7,558 | -62.4% | | Financial assets measured at fair value through other comprehensive income | 44,117 | 50,704 | -12.9% | | Financial assets measured at amortized cost | 68,662 | 43,610 | 57.4% | | Derivative financial instruments | 58,848 | 67,747 | -13.0% | | Total | 348,366 | 303,984 | 14.6% | Note 13 Derivative Financial Instruments As of June 30, 2025, the Group's derivative financial assets and liabilities primarily consisted of base and ferrous metal futures and options contracts cleared by LME Clear, with their fair values decreasing; the Group uses forward foreign exchange contracts and foreign exchange swaps for cash flow hedging and optimizing foreign currency cash flows - Total derivative financial assets decreased by 13.0% from HKD 67,747 million as of December 31, 2024, to HKD 58,848 million as of June 30, 2025[30] - Total derivative financial liabilities decreased by 13.1% from HKD 67,863 million as of December 31, 2024, to HKD 58,920 million as of June 30, 2025[30] - The fair value of base and ferrous metal futures and options contracts cleared by LME Clear was HKD 58,781 million for both assets and liabilities (December 31, 2024: HKD 67,629 million)[30] Overview of Derivative Financial Instruments | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Derivative Financial Assets | | | | | Base and ferrous metal futures and options contracts cleared through LME Clear | 58,781 | 67,629 | -13.0% | | Forward foreign exchange contracts | 37 | - | N/A | | Foreign exchange swaps | 30 | 118 | -74.6% | | Total (Assets) | 58,848 | 67,747 | -13.0% | | Derivative Financial Liabilities | | | | | Base and ferrous metal futures and options contracts cleared through LME Clear | 58,781 | 67,629 | -13.0% | | Forward foreign exchange contracts | - | 60 | -100.0% | | Foreign exchange swaps | 139 | 174 | -20.2% | | Total (Liabilities) | 58,920 | 67,863 | -13.1% | Note 14 Accounts Receivable, Prepayments and Deposits As of June 30, 2025, total accounts receivable, prepayments, and deposits slightly decreased, primarily due to a reduction in settlement reserve funds and clearing margins held by ChinaClear, though accounts receivable for continuous net settlement and prepayments for the acquisition of HKEX headquarters property increased - Total accounts receivable, prepayments, and deposits decreased by 5.2% from HKD 54,497 million as of December 31, 2024, to HKD 51,681 million as of June 30, 2025[33] - Settlement reserve funds and clearing margins held by ChinaClear decreased from HKD 19,814 million as of December 31, 2024, to HKD 13,312 million as of June 30, 2025[33] - Prepayments for the acquisition of HKEX headquarters property were HKD 754 million (December 31, 2024: zero)[33] Composition of Accounts Receivable, Prepayments and Deposits | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Accounts receivable for continuous net settlement | 33,840 | 31,813 | 6.4% | | Transaction levies, stamp duty and fees receivable | 1,619 | 1,083 | 49.5% | | Settlement reserve funds and clearing margins held by ChinaClear | 13,312 | 19,814 | -32.8% | | Inter-CCP margins held by Shanghai Clearing House | 502 | 828 | -39.4% | | Prepayments for acquisition of HKEX headquarters property | 754 | - | N/A | | Other accounts receivable, prepayments and deposits | 1,061 | 959 | 10.6% | | Total | 51,681 | 54,497 | -5.2% | Note 15 Acquisition of HKEX Headquarters Property In April 2025, the Group agreed to acquire the HKEX headquarters property for HKD 6.3 billion, obtaining partial possession and recognizing right-of-use assets and property, plant, and equipment; this transaction resulted in a lease modification and a one-off gain of HKD 76 million - The Group agreed to acquire the HKEX headquarters property for a total consideration of HKD 6.3 billion[34] - As of June 30, 2025, partial possession of the property was obtained, and HKD 1.718 billion in land lease right-of-use assets, HKD 34 million in property right-of-use assets, and HKD 53 million in leasehold improvements (property, plant, and equipment) were recognized[34] - A one-off gain of HKD 76 million from lease modification was recognized and included in miscellaneous income[34] Note 16 Right-of-Use Assets As of June 30, 2025, total right-of-use assets significantly increased, primarily due to the recognition of substantial land lease and property right-of-use assets from the acquisition of HKEX headquarters property, partially offset by lease modifications and depreciation - Total right-of-use assets increased by 115.4% from HKD 1,174 million as of January 1, 2025, to HKD 2,529 million as of June 30, 2025[36] - The acquisition of HKEX headquarters property resulted in an increase of HKD 1,718 million in land lease right-of-use assets and HKD 34 million in property right-of-use assets[36] Changes in Right-of-Use Assets | Category | January 1, 2025 (HKD Million) | Additions (HKD Million) | Lease Modifications (HKD Million) | Depreciation (HKD Million) | June 30, 2025 (HKD Million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Land leases | 15 | 1,718 | - | (1) | 1,732 | | Properties | 1,124 | 34 | (298) | (116) | 765 | | Information technology facilities | 31 | 4 | - | (6) | 29 | | Equipment and motor vehicles | 4 | - | - | (1) | 3 | | Total | 1,174 | 1,756 | (298) | (124) | 2,529 | Note 17 Margins, Mainland China Securities and Clearing Margins, and Cash Collateral from Participants As of June 30, 2025, total margin deposits, Mainland China securities and clearing margins, and cash collateral from participants significantly increased, primarily driven by substantial growth in margin deposits from Futures Clearing Corporation and SEHK Options Clearing House - Total increased by 24.2% from HKD 188,857 million as of December 31, 2024, to HKD 234,508 million as of June 30, 2025[36] - Margin deposits from Futures Clearing Corporation clearing participants increased by 70.8% from HKD 60,030 million as of December 31, 2024, to HKD 102,513 million as of June 30, 2025[36] - Margin deposits from SEHK Options Clearing House clearing participants increased by 93.3% from HKD 16,906 million as of December 31, 2024, to HKD 32,684 million as of June 30, 2025[36] Composition of Margins and Cash Collateral from Participants | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Margin deposits from Futures Clearing Corporation clearing participants | 102,513 | 60,030 | 70.8% | | Margin deposits, Mainland China securities and clearing margins, and cash collateral from HKSCC clearing participants | 23,498 | 29,679 | -20.9% | | Margin deposits from LME Clear clearing participants | 62,264 | 65,788 | -5.4% | | Margin deposits from OTC Clearing clearing participants | 13,258 | 15,699 | -15.5% | | Inter-CCP margins provided by Shanghai Clearing House to OTC Clearing | 291 | 755 | -61.4% | | Margin deposits from SEHK Options Clearing House clearing participants | 32,684 | 16,906 | 93.3% | | Total | 234,508 | 188,857 | 24.2% | Note 18 Accounts Payable, Accruals and Other Liabilities The Group's accounts payable, accruals, and other liabilities primarily consist of accounts payable for continuous net settlement, with most due within two days after the trade date - Accounts payable for continuous net settlement accounted for 87% of total accounts payable, accruals, and other liabilities (December 31, 2024: 90%)[37] - Most accounts payable, accruals, and other liabilities are due within three months[37] Note 19 Clearing House Funds As of June 30, 2025, total clearing house funds increased, primarily driven by higher cash contributions from clearing participants, with the OTC Clearing Interest Rate and Foreign Exchange Guarantee Fund showing significant growth - Total clearing house funds increased by 5.8% from HKD 28,714 million as of December 31, 2024, to HKD 30,378 million as of June 30, 2025[38] - Cash contributions from clearing participants increased from HKD 27,124 million as of December 31, 2024, to HKD 28,631 million as of June 30, 2025[38] - The OTC Clearing Interest Rate and Foreign Exchange Guarantee Fund increased by 39.0% from HKD 6,056 million as of December 31, 2024, to HKD 8,413 million as of June 30, 2025[38] Composition of Clearing House Funds | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash contributions from clearing participants | 28,631 | 27,124 | 5.6% | | Contributions to OTC Clearing Interest Rate and Foreign Exchange Guarantee Resources | 156 | 156 | 0.0% | | Clearing house fund reserves | 1,591 | 1,434 | 10.9% | | Total | 30,378 | 28,714 | 5.8% | | Comprising Funds: | | | | | Futures Clearing Corporation Reserve Fund | 4,541 | 6,074 | -25.3% | | HKSCC Guarantee Fund | 6,399 | 6,382 | 0.3% | | LME Clear Reserve Fund | 8,736 | 8,728 | 0.1% | | OTC Clearing Interest Rate and Foreign Exchange Guarantee Fund | 8,413 | 6,056 | 39.0% | | OTC Clearing Interest Rate and Foreign Exchange Guarantee Resources | 193 | 191 | 1.0% | | SEHK Options Clearing House Reserve Fund | 2,096 | 1,283 | 63.4% | Note 20 Borrowings As of June 30, 2025, total borrowings decreased, primarily due to dividend payments by OTC Clearing to non-controlling interests, resulting in a corresponding reduction in the put option amount - Total borrowings decreased by 12.6% from HKD 452 million as of December 31, 2024, to HKD 395 million as of June 30, 2025[39] - OTC Clearing paid dividends of HKD 59 million to non-controlling interests, resulting in a corresponding reduction in the put option amount[39] Composition of Borrowings | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Put option granted to non-controlling interests | 395 | 452 | -12.6% | | - Non-current liabilities | 52 | 70 | -25.7% | | - Current liabilities | 343 | 382 | -10.2% | Note 21 Share Capital and Shares Held for Share Award Scheme As of June 30, 2025, issued share capital remained stable, while the number of shares held for the share award scheme slightly decreased, reflecting the combined impact of share grants and share purchases - Issued and fully paid ordinary share capital was HKD 31,955 million, consistent with December 31, 2024[40] - Shares held for the share award scheme decreased from HKD 1,125 million as of December 31, 2024, to HKD 1,122 million as of June 30, 2025[40] - For the six months ended June 30, 2025, the share award scheme purchased 53,767 HKEX shares from the open market for a total of HKD 19 million, and granted 63,479 HKEX shares at a total cost of HKD 22 million[40] Share Capital and Shares Held for Share Award Scheme | Category | January 1, 2025 (HKD Million) | June 30, 2025 (HKD Million) | Change (HKD Million) | | :--- | :--- | :--- | :--- | | Share capital | 31,955 | 31,955 | 0 | | Shares held for share award scheme | (1,125) | (1,122) | 3 | | Total | 30,830 | 30,833 | 3 | Note 22 Employee Share Arrangements The Group uses a share award scheme as an employee benefit, granting shares to employees; for the six months ended June 30, 2025, over 1.44 million shares were awarded, with some being re-granted forfeited or unallocated shares - The Group uses a share award scheme as an employee benefit, granting shares to Group employees (including executive directors)[41] - For the six months ended June 30, 2025, a total of 1,441,003 shares were awarded under the employee share award scheme (March 7, 2025), with an average fair value of HKD 301.44 per share[41] - Of these, 37,239 shares were re-granted forfeited or unallocated shares, and 74,543 shares were awarded to the HKEX Group Chief Executive[41][42] Note 23 Set-Aside Reserves As of June 30, 2025, total set-aside reserves increased, primarily driven by growth in clearing house fund reserves - Total set-aside reserves increased by 10.8% from HKD 1,451 million as of December 31, 2024, to HKD 1,608 million as of June 30, 2025[43] - Clearing house fund reserves increased from HKD 1,434 million as of December 31, 2024, to HKD 1,591 million as of June 30, 2025[43][44] Composition of Set-Aside Reserves | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Clearing house fund reserves | 1,591 | 1,434 | 10.9% | | China statutory reserves | 17 | 17 | 0.0% | | Total | 1,608 | 1,451 | 10.8% | Note 24 Notes to the Condensed Consolidated Cash Flow Statement This note provides a reconciliation of profit before tax to net cash inflow from operating activities and an analysis of changes in financing liabilities; the significant increase in net cash inflow from operating activities reflects the strong cash-generating capability of core businesses - Net cash inflow from operating activities (non-HKFRS measure) increased by 72.1% from HKD 5,852 million in 2024 to HKD 10,069 million in 2025[45] - The reconciliation of profit before tax to net cash inflow from operating activities shows that the net increase in margin financial assets and liabilities had a significant impact on cash flow[45] Reconciliation of Net Cash Inflow from Operating Activities | Adjustment Item | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | | :--- | :--- | :--- | | Profit before tax | 10,164 | 6,952 | | Net interest income | (2,609) | (2,398) | | Finance costs | 49 | 59 | | Depreciation and amortisation | 743 | 698 | | Net increase in margin financial assets | (45,517) | (15,877) | | Net increase in margin financial liabilities | 45,651 | 15,882 | | (Increase)/decrease in accounts receivable, prepayments and deposits | (2,542) | 7,898 | | Increase/(decrease) in other liabilities | 1,774 | (2,022) | | Net cash inflow from operating activities | 9,135 | 4,990 | | Interest received on short-term debt securities, time deposits and cash and cash equivalents | 3,844 | 4,763 | | Interest paid to participants | (2,121) | (3,015) | | Income tax paid | (753) | (805) | | Net cash inflow from operating activities (non-HKFRS measure) | 10,069 | 5,852 | Reconciliation of Financing Liabilities | Category | Borrowings (H1 2025) (HKD Million) | Borrowings (H1 2024) (HKD Million) | Lease Liabilities (H1 2025) (HKD Million) | Lease Liabilities (H1 2024) (HKD Million) | | :--- | :--- | :--- | :--- | :--- | | As of January 1 | 452 | 447 | 1,294 | 1,604 | | Additions to leases | - | - | 24 | 120 | | Lease modifications/revaluations | - | - | (324) | (181) | | Cash flow (payments) | (59) | - | (155) | (158) | | As of June 30 | 395 | 449 | 873 | 1,412 | Note 25 Capital Expenditure and Commitments For the six months ended June 30, 2025, the Group's capital expenditure significantly increased, primarily due to the acquisition of HKEX headquarters property; future capital expenditure commitments also substantially grew, mainly concentrated on headquarters property, property, plant, and equipment, and intangible assets - For the six months ended June 30, 2025, the Group's capital expenditure was HKD 2.657 billion (2024: HKD 612 million), with HKD 1.805 billion used for the acquisition of HKEX headquarters property[47] - As of June 30, 2025, contracted but unprovided capital expenditure commitments were HKD 4,201 million (December 31, 2024: HKD 222 million), primarily including HKD 4,009 million for the HKEX headquarters property[47] Capital Expenditure Commitments | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted but unprovided: | | | | | - HKEX headquarters property | 4,009 | - | N/A | | - Other property, plant and equipment | 16 | 26 | -38.5% | | - Intangible assets | 176 | 196 | -10.2% | | Approved but not contracted: | | | | | - Property, plant and equipment | 980 | 662 | 48.0% | | - Intangible assets | 651 | 818 | -20.4% | | Total | 5,832 | 1,702 | 242.7% | Note 26 Contingent Liabilities As of June 30, 2025, the Group has several contingent liabilities, including potential requirements by the SFC to replenish compensation funds, indemnity undertakings to the Collector of Stamp Revenue, and commitments for HKSCC's winding-up liabilities - May be required by the SFC to replenish the Unified Exchange Compensation Fund, involving an amount not exceeding HKD 71 million[49] - Undertaking to indemnify the Collector of Stamp Revenue for underpaid stamp duty by participants, with a maximum total liability of HKD 104 million[49] - Commitment to bear HKSCC's winding-up liabilities and costs, limited to HKD 50 million[49] Note 27 Significant Related Party Transactions This note discloses key management personnel compensation; for the six months ended June 30, 2025, total key management personnel compensation decreased, primarily due to a reduction in share-based employee compensation benefits - Total key management personnel compensation decreased by 10.1% from HKD 179 million in 2024 to HKD 161 million in 2025[48] - Share-based employee compensation benefits decreased from HKD 87 million in 2024 to HKD 55 million in 2025[48] Key Management Personnel Compensation | Category | As of June 30, 2025 (HKD Million) | As of June 30, 2024 (HKD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Salaries and other short-term employee benefits | 100 | 87 | 14.9% | | Share-based employee compensation benefits | 55 | 87 | -36.8% | | Retirement benefit expenses | 6 | 5 | 20.0% | | Total | 161 | 179 | -10.1% | Note 28 Assets Charged LME Clear receives securities and gold as non-cash collateral from clearing participants and holds securities as collateral for overnight tri-party reverse repurchase agreements; these non-cash collaterals are not recorded in the Group's condensed consolidated statement of financial position, but some have been re-pledged to investment agents, custodians, and banks - The fair value of non-cash collateral received by LME Clear totaled USD 2.702 billion (HKD 21.211 billion), used for margins submitted by clearing participants[50] - LME Clear holds securities as collateral for overnight tri-party reverse repurchase agreements, with a fair value of USD 7.311 billion (HKD 57.391 billion)[51] - These non-cash collaterals are not recorded in the Group's condensed consolidated statement of financial position[52] Note 29 Capital Management As of June 30, 2025, the Group allocated HKD 4 billion from shareholders' funds to support the risk management systems of its clearing houses, with HKD 2.16 billion injected as capital into HKSCC, SEHK Options Clearing House, and Futures Clearing Corporation - The Group allocated HKD 4 billion (December 31, 2024: HKD 4 billion) from shareholders' funds to support the risk management systems of its clearing houses[53] - Of this, HKD 2.16 billion (December 31, 2024: HKD 2.16 billion) was injected as capital into HKSCC, SEHK Options Clearing House, and Futures Clearing Corporation[53] Note 30 Fair Value of Financial Assets and Liabilities This note discloses the classification of financial assets and liabilities measured at fair value and details the valuation methods for Level 3 investments (e.g., equity interests in Fusion Bank, Huakong Qingjiao, Guangzhou Futures Exchange); the carrying amounts of short-term financial assets and liabilities approximate their fair values - Financial assets and liabilities are classified by fair value hierarchy levels (Level 1, 2, 3), with Level 1 using quoted prices in active markets, Level 2 using observable market data, and Level 3 using unobservable data[54][56] - The Group holds unlisted equity interests in Fusion Bank Limited, Huakong Qingjiao Information Technology (Beijing) Co., Ltd., and Guangzhou Futures Exchange, which are classified as Level 3 investments[57][58] - The total fair value of Level 3 investments was HKD 334 million (December 31, 2024: HKD 329 million), estimated using market approach[58] Financial Assets and Liabilities Measured at Fair Value | Category | June 30, 2025 (HKD Million) | December 31, 2024 (HKD Million) | | :--- | :--- | :--- | | Financial Assets | | | | Financial assets measured at fair value (Total) | 47,359 | 58,262 | | Derivative financial instruments (Total) | 58,848 | 67,747 | | Total (Assets) | 106,207 | 126,009 | | Financial Liabilities | | | | Derivative financial instruments (Total) | 58,920 | 67,863 | | Total (Liabilities) | 58,920 | 67,863 | Fair Value of Financial Assets and Liabilities Not Measured at Fair Value | Category | June 30, 2025 (Carrying Amount) (HKD Million) | June 30, 2025 (Fair Value) (HKD Million) | December 31, 2024 (Carrying Amount) (HKD Million) | December 31, 2024 (Fair Value) (HKD Million) | | :--- | :--- | :--- | :--- | :--- | | Assets | | | | | | Financial assets measured at amortized cost: Debt securities due after one year | 1,411 | 1,459 | 1,439 | 1,443 | | Financial assets measured at amortized cost: Other financial assets due after one year | 78 | 65 | 89 | 67 | | Liabilities | | | | | | Borrowings: Put option granted to non-controlling interests | 395 | 402 | 452 | 455 | | Financial guarantee provided to Collector of Stamp Revenue | 20 | 43 | 20 | 35 |