2024-04-24 04:00Financial Performance - The group's revenue and other income for Q1 2024 was HKD 5.201 billion, a decrease of 6% compared to Q1 2023, but an increase of 7% from Q4 2023[4] - The company reported a net profit attributable to shareholders of HKD 2.970 billion, down 13% from HKD 3.408 billion in Q1 2023[4] - Revenue and other income for Q1 2024 amounted to HKD 5.2 billion, a 6% decrease compared to Q1 2023, primarily due to lower trading and settlement fees[6] - Revenue for the three months ended March 31, 2024, was 3,847 million HKD, a decrease of 4.2% from 4,015 million HKD for the same period in 2023[43] - Net investment income for the same period was 1,342 million HKD, down 12.6% from 1,535 million HKD year-over-year[43] - Operating profit decreased to 3,360 million HKD, a decline of 12.6% compared to 3,844 million HKD in the previous year[43] - EBITDA for the three months ended March 31, 2024, was 3,705 million HKD, down 12.0% from 4,209 million HKD in the same period last year[43] - Basic earnings per share for the period were 2.35 HKD, a decrease of 12.7% from 2.69 HKD in the prior year[43] - EBITDA declined by 20% year-on-year, attributed to a decrease in margin size impacting net investment income[15] Trading Activity - Average daily trading volume for derivatives reached a quarterly record high, with an average daily contract volume of 8,554 thousand contracts, up 14% from Q1 2023[5] - The average daily trading amount for Stock Connect (Northbound) was RMB 133.0 billion, a 37% increase compared to RMB 97.0 billion in Q1 2023[5] - The average daily turnover in the cash market was HKD 99.4 billion, a 9% increase from Q4 2023 but a 22% decrease from Q1 2023[6] - The average daily trading volume of derivative contracts reached 855,368 contracts, marking a 14% increase compared to the same period last year[18] - The average daily trading volume for Southbound trading through Stock Connect was RMB 23.6 billion in Q1 2024, down from RMB 26.3 billion in Q1 2023[12] - The average daily trading volume for Northbound trading through Stock Connect reached RMB 45.2 billion in Q1 2024, up 22% year-on-year[13] - The average daily trading volume for Southbound ETFs was HKD 1.7 billion in Q1 2024, while Northbound ETFs reached RMB 1.1 billion, marking a new quarterly high[13] - The average daily trading volume for stock securities products decreased to HKD 89.1 billion in Q1 2024 from HKD 114.7 billion in Q1 2023, a decline of approximately 22.3%[12] Operating Expenses - Operating expenses increased by 8% year-on-year to HKD 1.411 billion, primarily due to higher employee costs[4] - Operating expenses increased by 10% in Q1 2024, mainly due to higher costs allocated to the equity securities and financial derivatives segments[10] - The company’s operating expenses rose to 1,411 million HKD, compared to 1,303 million HKD in the previous year, reflecting a 8.3% increase[43] Market Developments - The first batch of callable bull/bear certificates ETFs was launched during the quarter[3] - The LME announced a new pricing method for five major contracts to enhance pricing accuracy and transparency[3] - The company continues to collaborate with the Hong Kong SAR government to explore measures to enhance market attractiveness and liquidity[6] - The new market data pricing trial launched in December 2023 received positive feedback, indicating a commitment to enhance retail investor access to market data[27] Investment Income - The company’s investment income was HKD 535 million, a decrease of 3% from HKD 549 million in Q1 2023[5] - The investment income net amount for Q1 2024 was HKD 535 million, a decrease of 3% from HKD 549 million in Q1 2023[31] - Total investment income for Q1 2024 was 807 million HKD, a decrease of 18.1% from 986 million HKD in Q1 2023[37] - The company reported a decline in margin and clearing fund investment income, down HKD 179 million compared to Q1 2023, attributed to lower margin requirements[35] Listings and Fundraising - In Q1 2024, 12 new companies were listed on the exchange, raising a total of HKD 4.8 billion, a 28% decrease from Q1 2023[11] - The number of new listings on the main board decreased to 12 in Q1 2024 from 18 in Q1 2023, representing a decline of 33.3%[12] - Total fundraising from initial public offerings (IPOs) was HKD 4.8 billion in Q1 2024, down from HKD 6.7 billion in Q1 2023, a decrease of 28.4%[12] Financial Position - Total assets as of March 31, 2024, amounted to 339,932 million HKD, a slight decrease from 341,179 million HKD as of December 31, 2023[45] - Total liabilities were 289,975 million HKD, an increase from 289,383 million HKD at the end of the previous year[45] - Cash and cash equivalents increased to 135,899 million HKD from 125,107 million HKD year-over-year[45] Legal and Compliance - The group faced legal claims totaling approximately 600 million USD related to judicial review claims submitted to the UK High Court[40] - The group’s financial position showed no significant changes compared to the financial status disclosed in the annual report as of December 31, 2023[42] - The auditor's report on the consolidated financial statements contains no reservations or matters requiring emphasis[46] Capital Expenditure - Capital expenditure for Q1 2024 was 278 million HKD, up from 240 million HKD in Q1 2023, indicating a growth of 15.8%[39] - The group’s capital expenditure commitments as of March 31, 2024, were 1.434 billion HKD, a decrease from 1.555 billion HKD on December 31, 2023[39]