2024-02-29 04:13Financial Performance - In 2023, the company's revenue and other income reached HKD 20.516 billion, an increase of 11% compared to 2022[4] - The company's net profit attributable to shareholders rose by 18% to HKD 11.862 billion in 2023[4] - EBITDA for 2023 was HKD 14.828 billion, up 12% from 2022, with an EBITDA margin of 73%, an increase of 1 percentage point[4] - Total revenue and other income for 2023 reached HKD 20.516 billion, an increase of 11% compared to HKD 18.456 billion in 2022[5] - Shareholder profit attributable to the company was HKD 11.862 billion, up 18% from HKD 10.078 billion in 2022[5] - Basic earnings per share increased to HKD 9.37, representing an 18% rise from HKD 7.96 in 2022[5] - The company reported a net investment income of HKD 1.487 billion, a turnaround from a loss of HKD 480 million in 2022[4] - The net investment income reached a historical high of HKD 5 billion in 2023, surpassing the previous record set in 2019[33] - The company reported a total revenue of HKD 20,516 million for the year ended December 31, 2023, an increase from HKD 15,445 million in the previous year[140] - Net profit for the year was HKD 11,981 million, representing a 18.66% increase compared to HKD 10,095 million in 2022[141] Market Activity - The average daily trading volume decreased, impacting trading and settlement fees, despite increases in LME trading and settlement fees[4] - Average daily trading value of equity securities on the exchange was HKD 93.2 billion, while the average daily trading value of derivatives was HKD 11.8 billion[6] - The average daily trading value for the Stock Connect was HKD 108.3 billion, indicating a robust trading environment[6] - The average daily trading amount in the cash market was HKD 105 billion, a 16% decrease compared to 2022[33] - The average daily trading volume for northbound and southbound transactions under the Stock Connect reached RMB 108.3 billion and HKD 31.1 billion, generating HKD 2.2 billion in revenue and other income[18] - The average daily trading volume of fee-paying metal contracts on LME increased by 11% and open interest rose by 25% compared to 2022[27] - The average daily trading volume of the spot market was HKD 105 billion, a decrease of 16% compared to 2022[49] - The average daily trading volume of ETPs reached a record high of HKD 14 billion in 2023, up from HKD 12 billion in 2022[55] Strategic Developments - The company launched new initiatives including "Swap Connect" and "HKEX Synapse" to enhance market connectivity and operational efficiency[2] - The introduction of the new listing rules under Chapter 18C and the expansion of the Stock Connect program were significant strategic developments[3] - The company opened new offices in New York and London to better support clients across different time zones[2] - HKEX plans to implement GEM listing reforms in January 2024 to support small and medium-sized enterprises while maintaining high investor protection levels[13] - The Stock Connect program expanded to include over 1,000 additional eligible stocks, enhancing cross-border investment opportunities[23] - The company is enhancing its technology infrastructure to support new product launches and market expansion[184] - The company is focused on expanding its product offerings in the derivatives market, including stock options and commodity-related businesses[182] Operating Expenses - Operating expenses increased by 7% in 2023, driven by higher employee and IT costs[4] - Operating expenses increased by 10% in 2023, primarily due to rising costs allocated to the listing segment[48] - The operating expenses increased by 115 million (11%), leading to a decline in EBITDA margin from 47% to 45%[97] - Employee costs increased by HKD 240 million (7%) due to strategic hiring and salary adjustments, reflecting the company's commitment to talent development[117] Sustainability and ESG Initiatives - HKEX aims to achieve carbon neutrality by 2024 and net-zero emissions by 2040, ten years ahead of the original target, reflecting its commitment to sustainable development[14] - The Hong Kong Stock Exchange (HKEX) launched a consultation document in April 2023 to optimize its ESG framework for issuer disclosure, aiming to align with the International Sustainability Standards Board (ISSB) standards[12] - The company continues to support responsible supply chains in the metals industry through donations to partners addressing child labor issues in African mining[14] - The LMEpassport platform showcased sustainability certifications for over 200 registered brands, enhancing data comparability in ESG aspects[29] - The company emphasizes its commitment to ESG (Environmental, Social, and Governance) principles in its operations[183] Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during 2023, except for the rotation of directors[179] - The company’s audit committee, along with external auditors, reviewed the consolidated financial statements for the year ended December 31, 2023, confirming compliance with applicable accounting standards[171] - The group has adopted several new HKFRSs effective from January 1, 2023, impacting accounting policies but not resulting in any financial impact[144] Future Outlook - The company remains cautiously optimistic about future prospects despite a complex macroeconomic and geopolitical environment[2] - The new CEO, appointed to take office on March 1, 2024, has extensive capital market experience and is expected to lead HKEX's future development effectively[16] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[140] - The company is actively exploring opportunities for mergers and acquisitions to enhance market presence[182]