2022-10-19 04:02Financial Performance - In Q3 2022, the company's revenue and other income amounted to HKD 4.318 billion, a decrease of 19% compared to Q3 2021[4] - Shareholders' profit attributable to the company was HKD 2.263 billion, a decrease of 30% from HKD 3.251 billion in Q3 2021[4] - Revenue and other income for the first three quarters of 2022 amounted to HKD 13,255 million, a decrease of 18% compared to HKD 16,218 million in the same period of 2021[6] - Main business revenue decreased by 13% to HKD 13,602 million, down from HKD 15,645 million in the first three quarters of 2021, primarily due to a decline in trading and settlement fees[6] - Revenue and EBITDA for the first three quarters of 2022 decreased by 22% and 26% respectively compared to the same period in 2021[12] - Operating profit for the nine months ended September 30, 2022, was HKD 8,306 million, down 29.0% from HKD 11,765 million in the previous year[59] - Net profit for the nine months ended September 30, 2022, was HKD 7,097 million, representing a decline of 28.0% from HKD 9,827 million in the same period of 2021[60] - Total comprehensive income for the nine months ended September 30, 2022, was HKD 6,767 million, down from HKD 9,902 million in the same period of 2021[60] Trading Activity - The average daily trading value of equity securities on the exchange was HKD 84.0 billion, down 43% from HKD 147.7 billion in Q3 2021[5] - The average daily trading value of the Stock Connect was RMB 96.7 billion, down 31% from RMB 139.3 billion in Q3 2021[5] - Average daily turnover of equity securities products on the exchange was HKD 107.4 billion, down 33% from HKD 159.6 billion in the first three quarters of 2021[7] - The average daily turnover of the Stock Connect northbound trading decreased by 18% to RMB 101.3 billion from RMB 123.2 billion in the previous year[7] - The average daily trading amount for the Stock Connect in Q3 2022 was RMB 1,013 billion for northbound and RMB 291 billion for southbound trading, down from RMB 1,159 billion and RMB 66.4 billion in Q3 2021[14] - The average daily trading volume of derivative contracts increased by 26%, reflecting heightened hedging demand amid market volatility[8] - The average daily trading volume of stock options contracts was 570,000 in the first three quarters of 2022, down from 681,000 in the same period of 2021[21] Investment Activities - The company reported a net loss of HKD 46 million from investment activities, compared to a gain of HKD 32 million in Q3 2021[4] - The net investment loss from company funds was HKD 424 million, compared to a gain of HKD 460 million in the first three quarters of 2021, reflecting a fair value loss of HKD 659 million in external portfolios[6] - The total investment loss for the first three quarters of 2022 was HKD 424 million, compared to a net gain of HKD 460 million in the same period of 2021[44] - The external portfolio recorded a fair value loss of HKD 659 million, compared to a fair value gain of HKD 298 million in the same period of 2021, reflecting a significant decline in asset prices due to inflation and geopolitical tensions[46] Operating Expenses - The company’s operating expenses increased by 17% to HKD 1.291 billion compared to HKD 1.108 billion in Q3 2021[4] - Operating expenses increased by 13% to HKD 3,747 million, driven by higher employee and professional fees, indicating continued investment in talent and strategic initiatives[6] - The total operating expenses increased by 25% in the first three quarters of 2022 compared to the same period in 2021, driven by strategic hiring and rising recruitment costs[49] - Operating expenses increased to HKD 3,747 million for the nine months ended September 30, 2022, compared to HKD 3,329 million in the same period of 2021, an increase of 12.5%[59] Market Activity and Initiatives - The number of IPO applications being processed as of September 30, 2022, was 144, more than double the amount in the first half of 2022[3] - The company launched seven new ETPs, including the first green bond ETF[3] - The bond market in Hong Kong saw 317 bonds listed in the first three quarters of 2022, with total fundraising exceeding HKD 672 billion[16] - The introduction of qualified ETFs into the Stock Connect on July 4, 2022, aims to enhance the product variety and facilitate cross-market investments[14] - In Q3 2022, the Hong Kong Stock Exchange (HKEX) established the Hong Kong International Carbon Market Committee to promote carbon neutrality goals and develop a green financial ecosystem[17] - The company is actively promoting sustainable and green finance through initiatives like the Sustainable and Green Exchange (STAGE) and has established the Hong Kong International Carbon Market Committee to explore regional carbon market opportunities[51] Financial Position - Total assets as of September 30, 2022, amounted to HKD 410,799 million, an increase from HKD 399,304 million as of December 31, 2021, representing a growth of approximately 2.5%[61] - Total liabilities rose to HKD 363,526 million from HKD 349,394 million, indicating an increase of about 4.0%[61] - The company's equity attributable to shareholders decreased to HKD 47,001 million from HKD 49,626 million, a decline of approximately 5.3%[61] - The total liabilities to equity ratio as of September 30, 2022, was approximately 7.7, compared to 7.0 as of December 31, 2021, indicating increased leverage[61] Miscellaneous - The charity fund of the company donated a total of HKD 119 million to various charitable activities in the first three quarters of 2022[51] - The company plans to further redeem HKD 200 million in the fourth quarter of 2022 to manage market volatility and support internal investments[48] - The company does not plan to declare a dividend for Q3 2022, compared to zero declared in Q3 2021[58]