2024-02-29 10:48Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 20,516 million, an increase from HKD 18,000 million in 2022[2] - Net profit for the year was HKD 11,981 million, up from HKD 10,095 million in the previous year, representing a growth of approximately 18.7%[4] - Basic earnings per share for 2023 was HKD 9.37, compared to HKD 8.00 in 2022, reflecting a year-on-year increase of 17.1%[2] - EBITDA for the year was HKD 14,828 million, indicating strong operational performance[2] - The company reported a total comprehensive income of HKD 12,087 million for 2023, compared to HKD 9,768 million in 2022, marking a significant increase[4] - Operating profit for the year was HKD 13,385 million, demonstrating robust profitability[2] - The company reported a net profit of HKD 10,078 million for the year, compared to HKD 18,173 million in the previous year, indicating a decrease of 44.5%[7] - The company’s total revenue for the year was HKD 49,626 million, down from HKD 49,910 million, a decline of 0.6%[7] - The company’s retained earnings increased to HKD 19,723 million from HKD 18,547 million, showing a growth of 6.3%[7] - The company reported a profit of HKD 11,862 million for the year, contributing significantly to retained earnings which totaled HKD 19,723 million by year-end[8] - The total comprehensive income for the year was HKD 12,087 million, compared to HKD 11,981 million in the previous year, reflecting an increase of 9.2%[8] Investment and Assets - Investment income for the year was HKD 10,972 million, with net investment income amounting to HKD 4,959 million after deducting interest returned to participants[2] - Total assets as of December 31, 2023, amounted to HKD 341,179 million, a decrease of 15.9% from HKD 406,051 million in 2022[5] - The company’s equity attributable to shareholders increased to HKD 51,344 million, up from HKD 49,728 million, reflecting a growth of 3.3%[5] - The company’s financial assets measured at fair value through profit or loss increased to HKD 6,961 million from HKD 6,964 million, a slight decrease of 0.04%[5] - The company’s total equity increased to HKD 51,796 million from HKD 50,099 million, reflecting a growth of 3.4%[5] - The company’s borrowings decreased to HKD 447 million from HKD 491 million, a reduction of 8.9%[5] - The group reported financial assets classified as non-HKFRS 13 Level 1 investments amounting to HKD 8.045 billion as of December 31, 2023, down from HKD 9.219 billion in 2022[21] - Investments under the investment fund category totaled HKD 5.698 billion as of December 31, 2023, compared to HKD 5.648 billion in the previous year[21] Cash Flow and Liquidity - Cash and cash equivalents decreased to HKD 125,107 million from HKD 184,965 million, representing a decline of 32.3%[5] - The net cash inflow from main business activities was HKD 11,294 million, a decrease of 13.5% from HKD 13,062 million in 2022[9] - Cash and cash equivalents decreased by HKD 6,040 million, ending the year at HKD 9,212 million compared to HKD 15,258 million at the beginning of the year[9] - The company paid dividends totaling HKD 10,316 million, which included an interim dividend of HKD 4.50 per share[9] - The cash outflow from investment activities was HKD 6,290 million, significantly higher than HKD 1,700 million in the previous year[9] - The company’s cash flow from operating activities was impacted by a decrease in cash inflow from other business activities, which totaled HKD 11,500 million compared to HKD 14,956 million in the previous year[9] Governance and Management - The company’s board consists of 12 independent non-executive directors, ensuring strong governance and oversight[1] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1] Taxation and Compliance - The group has recognized a potential tax liability of HKD 21 million related to additional tax assessments, which may affect future financial results[22] - The group has received a tax assessment notice from the Hong Kong tax authority amounting to HKD 16 million regarding offshore profits exemption[22] - The total tax expense for 2023 decreased to 1,351 million HKD from 1,564 million HKD in 2022, reflecting a reduction of 13.6%[58] - The total tax provision for overseas tax increased to 163 million HKD in 2023 from 117 million HKD in 2022, reflecting a growth of 39.4%[58] Employee Compensation and Benefits - Employee compensation and related expenses totaled HKD 3,564 million in 2023, an increase from HKD 3,324 million in 2022, which is a rise of 7%[42] - Total remuneration for executive directors in 2023 amounted to HKD 89,295,000, an increase of 3.0% from HKD 86,561,000 in 2022[50] - Performance cash bonuses for executive directors rose to HKD 14,040,000 in 2023, up 13.5% from HKD 12,375,000 in 2022[50] - The total remuneration for non-executive directors was HKD 24,294,000 in 2023, compared to HKD 23,643,000 in 2022, reflecting a 2.8% increase[51] - The total employee share-based compensation expense recognized for the year was HKD 399 million, up from HKD 380 million in 2022, representing a growth of 5%[146] Strategic Initiatives - The group restructured its operational segments in 2023, creating a new "Data and Connectivity" segment, which now includes revenue from market data sales and related services[24] - The restructuring aimed to better align with market operations and enhance strategic decision-making capabilities[24] - The group’s strategic investments in joint ventures are expected to enhance Hong Kong's competitiveness and support the development of mainland China's capital markets[99][100] Risk Management - The group’s risk management strategy focuses on minimizing potential adverse impacts from market risks, including foreign exchange, price, and interest rate risks[178] - The group’s investment policy aims to achieve optimal returns while ensuring liquidity and managing risks associated with financial assets[180] - The group’s financial risk management includes monitoring market risks and implementing investment restrictions to control exposure[180] Contingent Liabilities and Legal Matters - The group has a contingent liability of up to HKD 71 million related to potential compensation claims from the Securities and Futures Commission as of December 31, 2023[166] - The maximum contingent liability for compensation to participants for underpaid stamp duty is estimated at HKD 115 million, assuming all 574 participants are in default[166] - The group has not recognized any provisions in the financial statements related to the judicial review due to the favorable court ruling[168] Future Outlook - The company plans to continue evaluating the useful lives and residual values of fixed assets at each reporting period[113] - The company aims to enhance employee retention and motivation through its share reward program, which is a key component of its compensation strategy[147]