2023-08-28 04:00Financial Performance - The group's revenue and other income for the first half of 2023 reached HKD 10.575 billion, an increase of 18% compared to the same period in 2022[12]. - Shareholders' profit attributable increased by 31% to HKD 6.312 billion for the first half of 2023[12]. - Revenue and other income reached 5.017 billion HKD in Q2 2023, an 18% increase compared to Q2 2022[16]. - Net profit attributable to shareholders was 2.904 billion HKD, up 34% from 2.168 billion HKD in Q2 2022[18]. - Total revenue for the six months ended June 30, 2023, was HKD 10,575 million, an increase of 18.3% compared to HKD 8,937 million for the same period in 2022[117]. - Investment income for the same period was HKD 5,774 million, significantly up from HKD 299 million in the previous year[117]. - Net profit for the six months ended June 30, 2023, was HKD 6,368 million, representing a 32% increase from HKD 4,829 million in the prior year[118]. - Basic earnings per share for the period was HKD 4.99, compared to HKD 3.82 for the same period last year, reflecting a 30.7% increase[117]. - EBITDA for the six months ended June 30, 2023, was HKD 7,859 million, up from HKD 6,394 million, marking a 22.9% increase[117]. Trading Activities - The average daily trading amount of the stock exchange's equity securities products was HKD 102.9 billion, a decrease of 14% year-on-year[15]. - The average daily trading amount of the Stock Connect (Shanghai and Shenzhen) was RMB 109.3 billion, an increase of 5% compared to the previous year[15]. - The average daily trading volume of derivative contracts reached a new high of 735,000 contracts in the first half of 2023, representing a 4% increase year-on-year[15]. - The average daily trading value for the ETF market increased by 21% to 11.7 billion HKD[23]. - The average daily trading value of derivatives, including warrants and CBBCs, decreased by 36% compared to the first half of 2022[47]. - The average daily trading volume of Hang Seng Tech Index futures and options reached 106,062 contracts, a 62% increase compared to the first half of 2022[52]. - The average daily trading value for Southbound trading under the Stock Connect was HKD 16.9 billion, consistent with HKD 17.0 billion in the same period last year[40]. Product Development and Innovation - The company launched the "Swap Connect" and a new HKD-CNY dual counter model, enhancing its product offerings[8]. - New product offerings included a Bitcoin futures ETF and two ESG ETFs, expanding the product portfolio[24]. - The company plans to launch FINI (Fast Interface for New Issuance) in October 2023 to digitize and modernize the IPO settlement process in Hong Kong[25]. - The company plans to increase trading days for Stock Connect by approximately 10 days annually, enhancing trading opportunities[24]. - The company continues to promote sustainable finance products through its STAGE platform and is committed to achieving net-zero emissions[67]. Operating Expenses and Financial Management - Operating expenses rose by 7% in the first half of 2023, mainly due to increased employee costs and professional fees related to LME[32]. - The company’s operating expenses increased to HKD 2,622 million from HKD 2,456 million, reflecting a rise of 6.8%[117]. - The total employee costs for the first half of 2023 were HKD 1,711 million, compared to HKD 1,667 million in the same period of 2022, reflecting an increase of 2.6%[130]. - Professional fees surged by 78% to HKD 137 million, up from HKD 77 million, largely due to legal and consulting costs related to the LME nickel market suspension[69]. Charity and Community Engagement - The company recorded a significant increase in donations from the charity fund, rising 243% to 24 million HKD[18]. - The company donated a total of HKD 77 million through its charity fund in the first half of 2023, focusing on financial education, inclusivity, poverty alleviation, and environmental sustainability[26]. - The group’s charity fund contributions amounted to HKD 29 million for the first half of 2023, consistent with the previous year[126]. Governance and Compliance - The Hong Kong Stock Exchange (HKEX) has complied with all provisions of the Corporate Governance Code during the six months ended June 30, 2023, except for the rotation of directors as per B.2.2[95]. - The company has adopted the Standard Code as its code of conduct for directors in securities trading, with all directors confirming compliance during the applicable period[96]. - The company has maintained transparency in its governance practices, ensuring compliance with relevant regulations and guidelines[96]. Market Outlook and Strategic Initiatives - The company plans to continue diversifying its market and product offerings to capture emerging opportunities despite macroeconomic uncertainties[5]. - Future outlook indicates a positive growth trajectory, driven by increased trading activities and strategic initiatives in the financial markets[176]. - The ongoing development of new products and technologies is a strategic focus for HKEX to enhance market efficiency and attract more investors[174].