2025-09-01 04:00Financial Performance - The group achieved a record high in revenue and profit for the first half of 2025, with revenue and other income reaching HKD 14.08 billion, a 33% increase compared to HKD 10.62 billion in the first half of 2024[18]. - Shareholder profit amounted to HKD 8.52 billion, reflecting a 39% increase from HKD 6.13 billion in the same period last year[18]. - The main business revenue rose by 34% to HKD 12.95 billion, driven by record trading volumes in the spot and stock options markets[19]. - EBITDA for the first half of 2025 was HKD 10.94 billion, a 43% increase from HKD 7.66 billion in the previous year, with an EBITDA margin of 79%, up 6 percentage points[18]. - Basic earnings per share increased by 39% to HKD 6.74, compared to HKD 4.84 in the first half of 2024[19]. - The operating profit for the first half of 2025 was HKD 10,196 million, up from HKD 6,125 million in the first half of 2024[121]. - The total comprehensive income for the six months ended June 30, 2025, was HKD 9,045 million, compared to HKD 6,179 million in 2024, marking a 46.5% increase[186]. Trading Activity - The average daily trading amount of equity securities on the exchange was HKD 222.8 billion for the six months ending June 30, 2025, up 122% from HKD 100.3 billion in the same period of 2024[20]. - The average daily trading amount for the Stock Connect (Shanghai and Shenzhen) was RMB 171.3 billion, a 32% increase from RMB 130.2 billion in the previous year[20]. - The average daily trading amount of the Hong Kong Stock Connect reached HKD 111.0 billion, a significant increase of 196% from HKD 37.5 billion in the same period last year[20]. - The average daily trading amount in the securities market reached HKD 240.2 billion, a year-on-year increase of 118%[34]. - The average daily trading volume of LME metal contracts increased by 3% year-on-year, maintaining robust trading activity despite market volatility[37]. - The average daily trading amount for the Shanghai-Hong Kong Stock Connect reached RMB 171.3 billion, a 32% increase compared to the first half of 2024[60]. - The average daily trading volume of derivative contracts reached 1,700,322 contracts, an 11% increase compared to the first half of 2024, setting a new half-year record[82]. Operating Expenses - Operating expenses increased by 6% to HKD 2.97 billion, primarily due to a HKD 90 million fine paid to the FCA related to the 2022 nickel market incident[18]. - Operating expenses increased by 5% due to higher employee costs, but were partially offset by a decrease in charitable donations[24]. - The company’s operating expenses increased to HKD 2,973 million, compared to HKD 2,794 million in the previous year, reflecting a rise of 6.4%[185]. - Operating expenses increased by 22% in H1 2025, primarily due to a one-time FCA fine of $90 million and legal costs of $50 million related to the nickel market incident[94]. Capital Expenditure - The company announced a capital expenditure of HKD 1.81 billion for the purchase of a permanent headquarters property[19]. - Capital expenditure for the headquarters property was HKD 1.805 billion, marking a significant investment in company infrastructure[25]. - The company completed the acquisition of three full floors of the Trading Plaza for HKD 1.8 billion as part of its strategy to establish a permanent headquarters, with a total investment of HKD 6.3 billion planned for the entire project[110]. - The group incurred capital expenditures of HKD 2,559 million for the acquisition of the Hong Kong Stock Exchange headquarters property during the period[189]. Market Developments - The company plans to implement new measures to enhance market competitiveness and attractiveness in the second half of 2025, including shortening the settlement cycle for the spot market[4]. - The company has received a record number of new stock listing applications in the past six months, indicating strong market interest[4]. - The introduction of the "Tech Company Fast Track" aims to assist technology and biotech companies in preparing for listings more efficiently, enhancing market quality and transparency[39]. - The launch of the first Hang Seng Tech Index call options ETF and the first individual stock leveraged and inverse products further strengthens Hong Kong's position as a leading ETP market in the region[39]. Charity and Community Initiatives - The first half of 2025 saw a significant increase in donations from the Hong Kong Stock Exchange Charity Fund, rising 160% to HKD 78 million[19]. - The company plans to allocate at least HKD 25 million for a new flagship charity program focused on supporting caregivers as part of its community initiatives[115]. Governance and Compliance - Hong Kong Exchanges and Clearing Limited (HKEX) has complied with all provisions of the Corporate Governance Code, except for the rotation of directors as per B.2.2, for the six months ending June 30, 2025[152]. - The company has adopted the Standard Code as its code of conduct for directors in securities trading, with all directors confirming compliance for the six months ending June 30, 2025[154]. - The audit committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2025[139]. Shareholder Information - The interim dividend declared for the year ending December 31, 2025, is HKD 6.00 per share[171]. - The record date for the interim dividend is September 5, 2025, with the payment date set for September 16, 2025[172]. - The company purchased a total of 53,767 shares for a total amount of HKD 19 million under the share incentive plan during the six months ended June 30, 2025[168].