2023-04-26 04:03Financial Performance - The group's revenue and other income for Q1 2023 reached HKD 5.558 billion, a 19% increase compared to HKD 4.690 billion in Q1 2022[4] - The net profit attributable to shareholders was HKD 3.408 billion, reflecting a 28% increase from HKD 2.668 billion in the same quarter last year[4] - Total revenue and other income for Q1 2023 reached HKD 5.6 billion, a 19% increase from Q1 2022, marking the second-highest quarterly revenue ever[6] - Investment income for Q1 2023 hit a record high of HKD 1.5 billion, contributing significantly to the revenue increase[6] - Operating profit for the three months ended March 31, 2023, was HKD 3,844 million, up 23.2% from HKD 3,119 million in the previous year[47] - Basic earnings per share increased to HKD 2.69 from HKD 2.11, representing a growth of 27.6%[47] - Total comprehensive income for the three months ended March 31, 2023, was HKD 3,623 million, compared to HKD 2,617 million in the same period of 2022, reflecting a year-over-year increase of 38.4%[48] Trading Activity - The average daily turnover of equity securities products was HKD 114.7 billion, down 9% from HKD 126.0 billion in Q1 2022[5] - The average daily turnover of derivatives, including warrants and CBBCs, decreased by 36% to HKD 13.1 billion from HKD 20.5 billion in the previous year[5] - In Q1 2023, the average daily trading amount was HKD 127.8 billion, down 13% compared to Q1 2022, but similar to Q4 2022[6] - The average daily trading amount for the Stock Connect was RMB 53.1 billion, a decrease of 6.9% from RMB 57.1 billion in Q1 2022[14] - The average daily trading amount for the Exchange-Traded Products (ETP) market reached HKD 14.5 billion in Q1 2023, representing a 31% increase compared to the same period last year[15] - The average daily trading volume of derivative contracts was 1,418,695, an increase of 6% compared to the same period last year[21] - The average daily trading volume of Hang Seng Tech Index futures in Q1 2023 was 99,649 contracts, up 88% year-on-year[21] New Listings and Market Activity - There are over 90 new listing applications currently being processed as of March 31, 2023, indicating strong momentum in new listings[3] - In Q1 2023, 18 new companies were listed on the exchange, raising a total of HKD 6.7 billion, a 55% decrease from Q1 2022[13] - The total fundraising amount from new listings in Q1 2023 was RMB 33.7 billion, significantly down from RMB 78 billion in Q1 2022[14] - The number of newly listed companies on the Main Board in Q1 2023 was 18, compared to 17 in the same period last year[14] Investment Income - The company reported a significant recovery in investment income, with net investment income of HKD 549 million compared to a loss of HKD 104 million in Q1 2022[4] - Total net investment income for Q1 2023 was HKD 986 million, significantly up from HKD 163 million in Q1 2022, representing a year-over-year increase of 504%[42] - The annualized net investment return for Q1 2023 was 6.31%, compared to a negative return of 1.21% in Q1 2022[36] - The net investment income from margin and clearing funds increased by HKD 823 million compared to Q1 2022, reflecting higher interest rates on HKD and USD deposits[40] Operating Expenses - Operating expenses rose by 11% year-on-year, primarily due to increased employee costs and professional fees related to market events[6] - The company reported a significant increase in employee-related expenses to HKD 870 million from HKD 803 million year-over-year[47] - Operating expenses increased by 10% in Q1 2023 due to salary adjustments and hiring for strategic plans[39] Product Offerings - The company launched two ESG ETFs and one Bitcoin futures ETF in Q1 2023, indicating a focus on new product offerings[3] - The company launched 6 new ETPs in Q1 2023, including a Bitcoin futures ETF and two ESG ETFs, enhancing its product offerings[15] Market Developments - The Northbound and Southbound trading under the Stock Connect program will see an increase of approximately ten trading days annually due to the optimized trading calendar[3] - The Stock Connect expansion on March 13, 2023, included 1,034 additional stocks, enhancing market connectivity[13] - The introduction of the investor identification system on March 20, 2023, is expected to enhance market surveillance and investor confidence[13] Financial Position - Total assets as of March 31, 2023, amounted to HKD 379,496 million, a decrease from HKD 406,051 million as of December 31, 2022[49] - Total liabilities decreased to HKD 330,366 million from HKD 355,952 million, indicating a reduction of 7.2%[49] - Cash and cash equivalents as of March 31, 2023, were HKD 173,681 million, down from HKD 184,965 million at the end of 2022[49] Legal and Compliance - The company is actively defending against legal claims related to the suspension of nickel contracts, with no significant changes in contingent liabilities reported as of March 31, 2023[44] - The adoption of new/revised HKFRSs effective from January 1, 2023, was noted, impacting the financial reporting standards[50] - The company's auditor submitted a report on the consolidated financial statements with no reservations or emphasis of matter[51]