2023-08-16 04:17Financial 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[7]. - Shareholder profit attributable to the company was HKD 6.312 billion, reflecting a 31% increase from HKD 4.836 billion in the first half of 2022[7]. - The EBITDA margin improved to 75%, up 3 percentage points from the same period last year[7]. - The company reported a net investment income of HKD 817 million for the first half of 2023, a significant recovery from a loss of HKD 378 million in the same period last year[8]. - Investment income netted HKD 2.7 billion in the first half of 2023, reflecting a strong performance due to rising interest rates and robust external portfolio performance[15]. - In Q2 2023, total revenue and other income amounted to HKD 5 billion, the highest for a second quarter, driven by strong investment income[16]. - The EBITDA for the first half of 2023 was HKD 7.9 billion, down 13% compared to the same period in 2022, primarily due to reduced trading and settlement volumes[19]. - The company reported a significant increase in net investment income, with a net amount of HKD 2,676 million compared to HKD 89 million in the previous year[81]. - The company’s operating profit for the period was HKD 7,140 million, up from HKD 5,677 million in the same period last year, showcasing operational efficiency[81]. Trading Volume and Market Activity - The average daily trading volume of equity securities on the exchange decreased by 14% to HKD 102.9 billion compared to the first half of 2022[8]. - The average daily trading volume of derivatives contracts increased by 4% to 7,354 contracts in the first half of 2023[8]. - Average daily trading volume in the Hong Kong securities market was HKD 115.5 billion, a decrease of 16% year-on-year[11]. - The average daily trading volume for ETFs increased by 21% year-on-year, reaching HKD 11.7 billion[11]. - The average daily trading volume of Bond Connect northbound reached RMB 38.94 billion, a 25% increase year-on-year[8]. - The average daily trading amount for the Stock Connect's southbound trading was HKD 58.6 billion, an increase from HKD 55.4 billion in the same period last year[25]. - The average daily trading volume of the Stock Connect program increased for both southbound and northbound trading compared to the same period in 2022[12]. - The average daily trading volume of the USD/CNY (HK) futures contracts totaled 1,586,469 contracts in the first half of 2023[36]. - The average daily trading volume of three specific products (Hang Seng Index futures options, Hang Seng China Enterprises Index futures options, and Hang Seng Tech Index futures options) reached 39,947 contracts, an increase of over 170% compared to the first half of 2022[34]. Product Development and Innovations - The company launched the "Swap Connect" mechanism and the new HKD-CNY dual counter model in May and June 2023, respectively[3]. - The company launched a new Bitcoin futures ETF and two ESG ETFs in the first half of 2023, expanding its product offerings[12]. - The company plans to introduce FINI (Fast Interface for New Issuance) in October 2023 to modernize the IPO settlement process[13]. - The company is exploring potential acquisitions to enhance its service offerings and expand its customer base in the Asia-Pacific region[112]. - New product initiatives include the launch of a sustainable and green trading platform, aimed at attracting environmentally conscious investors[113]. Operating Expenses and Financial Position - Operating expenses increased by 7% in the first half of 2023 compared to the same period in 2022, mainly due to higher employee costs and professional fees related to LME[15]. - Operating expenses increased by 7% to HKD 2,622 million compared to HKD 2,456 million in the same period of 2022[53]. - Employee-related expenses rose by 3% to HKD 1,711 million, primarily due to strategic hiring and salary adjustments[53]. - The company's total capital debt ratio remained stable at 1% as of June 30, 2023, consistent with December 31, 2022[67]. - As of June 30, 2023, total financial assets amounted to HKD 313,610 million, down from HKD 358,103 million at the end of 2022[58]. - The group's cash and cash equivalents decreased to HKD 148,578 million from HKD 184,965 million[59]. - The company reported a total equity of 52,073 million as of June 30, 2023, an increase of 3.9% from 50,099 million at the end of 2022[83]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code, except for the rotation of directors as per provision B.2.2[78]. - The audit committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, confirming compliance with applicable accounting standards[77]. - The management emphasized a commitment to maintaining high standards of corporate governance and transparency in all operations[113]. Future Outlook and Strategic Plans - The company anticipates a revenue growth of 8% for the upcoming fiscal year, driven by increased market activity and new product offerings[113]. - The company plans to continue diversifying its market offerings and product portfolio to provide broader opportunities for clients globally[2]. - The company has set a target to increase its market share by 5% over the next two years through innovative trading solutions[112]. - The ongoing development of new technologies is aimed at improving trading efficiency and user experience, with a focus on digital transformation[113].