2024-03-18 04:00Financial Performance - In 2023, the company's revenue and other income reached HKD 20.516 billion, an increase of 11% compared to 2022, marking the second-highest record in history[22] - Shareholder profit attributable to the company rose by 18% to HKD 11.862 billion in 2023[22] - EBITDA increased by 12% to HKD 14.828 billion, with an EBITDA margin of 73%, up by 1 percentage point from 2022[22] - Total revenue for 2023 reached HKD 20,516 million, an increase of 11% compared to HKD 18,456 million in 2022[23] - EBITDA for 2023 was HKD 14,828 million, reflecting a 12% growth from HKD 13,185 million in 2022[23] - Shareholders' profit attributable to the company increased by 18% to HKD 11,862 million, up from HKD 10,078 million in 2022[23] - Basic earnings per share rose to HKD 9.37, an 18% increase from HKD 7.96 in the previous year[23] - The company's net profit attributable to shareholders for 2023 was 11,862 million, compared to 10,078 million in 2022[200] Trading and Market Activity - The average daily trading volume decreased, impacting trading and settlement fees, despite increases in LME trading and settlement fees[22] - The average daily trading value of equity securities on the exchange for Q4 2023 was HKD 80.4 billion, a decrease of 29% from HKD 113.6 billion in Q4 2022[33] - The average daily trading value of derivatives and warrants for Q4 2023 was HKD 10.6 billion, down 22% from HKD 13.6 billion in Q4 2022[33] - The average daily trading amount in the cash market was HKD 105 billion, a decrease of 16% from 2022[49] - The average daily trading volume for the derivatives market reached 1.4 million contracts, reflecting a 4% increase year-on-year[49] - The average daily trading volume of LME fee-paying metal contracts increased by 11% compared to 2022, indicating an improvement in market sentiment[37] - The average daily trading volume for the Northbound and Southbound Stock Connect reached RMB 108.3 billion and HKD 31.1 billion, generating revenue of HKD 2.2 billion[47] - The average daily trading volume for the Bond Connect Northbound reached a new high of RMB 40 billion, an increase of 24% compared to 2022[47] Strategic Initiatives and Developments - The company launched several new initiatives, including "Swap Connect" and HKEX Synapse, enhancing its market connectivity and operational efficiency[10] - The company opened new offices in New York and London to better support clients across different time zones[10] - The company implemented new measures to enhance its listing mechanisms, including the introduction of Chapter 18C of the Listing Rules[10] - The company launched several reforms to enhance the quality and strength of the Hong Kong listing framework, including expanding the paperless listing mechanism and implementing dual participation reforms for IPO pricing[40] - The company continues to strengthen its international network and partnerships, reinforcing Hong Kong's position as a global offshore RMB center[38] - The company is preparing to play a key role in the evolving global financial landscape, connecting China with the world and adopting new technologies for future business and market development[42] Sustainability and Corporate Responsibility - The company committed to achieving carbon neutrality by 2024 and net-zero emissions by 2040[20] - The company plans to enhance its corporate social responsibility initiatives, allocating $10 million for community development projects in 2024[86] - The charity fund of the Hong Kong Stock Exchange raised HKD 113 million in 2023, including a donation of HKD 25 million from the exchange itself, and has donated a total of HKD 94 million to various social causes during the year[195] - The charity fund has cumulatively donated over HKD 449 million to support more than 90 projects, benefiting over 689,000 individuals since its inception[195] Future Outlook - The company is cautiously optimistic about future prospects, leveraging its unique position as a connector between East and West amid complex macroeconomic conditions[10] - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[79] - The company plans to continue capturing innovative market opportunities and enhancing the attractiveness and competitiveness of its market and product ecosystem[110] - Looking ahead to 2024 and beyond, the company is optimistic about future opportunities under the leadership of the incoming CEO, Ms. Chen Yiting[63] Operational Efficiency and Cost Management - Capital expenditure for 2023 was HKD 1,381 million, representing a 17% increase from HKD 1,184 million in 2022[23] - The company has achieved a 30% reduction in operational costs through efficiency improvements and technology upgrades[84] - Operating expenses rose by 7% compared to 2022, primarily due to increased employee costs and IT maintenance expenses[110] - Operating expenses increased by 10% to HKD 1,127 million in 2023 from HKD 1,027 million in 2022[118] - Employee-related expenses rose by 240 million (7%) due to strategic hiring and salary adjustments, reflecting the company's commitment to talent development[197]