Pursuant to Chapter 38 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the Securities and Futures Commission regulates Hong Kong Exchanges and Clearing Limited in relation to the listing of its shares on The Stock Exchange of Hong Kong Limited. The Securities and Futures Commission takes no responsibility for the contents of this document, makes no representation as to its accuracy or completeness, and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document.
(Incorporated in Hong Kong with limited liability)
(Stock Code: 388)
Condensed Consolidated Financial Statements
For the six months ended 30 June 2019
(Unaudited)
As at 14 August 2019, the board of directors of Hong Kong Exchanges and Clearing Limited (HKEX or the Company) comprises 12 Independent Non-executive Directors, namely
Mrs Laura May-Lung CHA (Chairman), Mr Apurv BAGRI, Mr CHAN Tze Ching, Ignatius, Mr CHEAH Cheng Hye, Ms FUNG Yuen Mei, Anita, Mr Rafael GIL-TIENDA, Dr HU Zuliu, Fred, Mr HUNG Pi Cheng, Benjamin, Mr LEUNG Pak Hon, Hugo, Ms MA Xuezheng, Mary, Mr John Mackay McCulloch WILLIAMSON, and Mr YIU Kin Wah, Stephen, and one Executive Director, Mr LI Xiaojia, Charles, who is also HKEX's Chief Executive.
1
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
(Financial figures are expressed in Hong Kong Dollar)
Six months | Six months | ||||||
ended | ended | ||||||
30 Jun 2019 | 30 Jun 2018 | ||||||
Note | $m | $m | |||||
Trading fees and trading tariffs | 4 | 2,940 | 3,334 | ||||
Stock Exchange listing fees | 847 | 855 | |||||
Clearing and settlement fees | 1,655 | 1,747 | |||||
Depository, custody and nominee services fees | 575 | 518 | |||||
Market data fees | 461 | 443 | |||||
Other revenue | 577 | 488 | |||||
REVENUE | 7,055 | 7,385 | |||||
Investment income | 2,142 | 1,300 | |||||
Interest rebates to Participants | (623) | (505) | |||||
Net investment income | 5 | 1,519 | 795 | ||||
Sundry income | 4 | 14 | |||||
REVENUE AND OTHER INCOME | 8,578 | 8,194 | |||||
OPERATING EXPENSES | |||||||
Staff costs and related expenses | 6 | (1,328) | (1,205) | ||||
Information technology and computer maintenance expenses | (278) | (241) | |||||
Premises expenses | (64) | (202) | |||||
Product marketing and promotion expenses | (29) | (22) | |||||
Professional fees | (37) | (42) | |||||
Other operating expenses | (217) | (206) | |||||
(1,953) | (1,918) | ||||||
EBITDA* | 6,625 | 6,276 | |||||
Depreciation and amortisation | (495) | (378) | |||||
OPERATING PROFIT | 6,130 | 5,898 | |||||
Finance costs | 7 | (86) | (55) | ||||
Share of profits less losses of joint ventures | 6 | 4 | |||||
PROFIT BEFORE TAXATION | 6,050 | 5,847 | |||||
TAXATION | 8 | (847) | (822) | ||||
PROFIT FOR THE PERIOD | 5,203 | 5,025 | |||||
PROFIT/(LOSS) ATTRIBUTABLE TO: | |||||||
- Shareholders of HKEX | 5,205 | 5,041 | |||||
- Non-controlling interests | (2) | (16) | |||||
PROFIT FOR THE PERIOD | 5,203 | 5,025 | |||||
Basic earnings per share | 9(a) | $4.16 | $4.07 | ||||
Diluted earnings per share | 9(b) | $4.15 | $4.06 | ||||
- EBITDA represents earnings before interest expenses and other finance costs, taxation, depreciation and amortisation. It excludes the Group's share of results of the joint ventures.
2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
(Financial figures are expressed in Hong Kong Dollar)
Six months | Six months | |||
ended | ended | |||
30 Jun 2019 | 30 Jun 2018 | |||
$m | $m | |||
PROFIT FOR THE PERIOD | 5,203 | 5,025 | ||
OTHER COMPREHENSIVE INCOME | ||||
Items that may be reclassified subsequently to profit or loss: | ||||
Currency translation differences of foreign subsidiaries | (35) | 67 | ||
Cash flow hedges | (2) | (3) | ||
Changes in fair value of financial assets measured at | ||||
fair value through other comprehensive income | 3 | (3) | ||
OTHER COMPREHENSIVE INCOME | (34) | 61 | ||
TOTAL COMPREHENSIVE INCOME | 5,169 | 5,086 | ||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||||
- Shareholders of HKEX | 5,168 | 5,100 | ||
- Non-controlling interests | 1 | (14) | ||
TOTAL COMPREHENSIVE INCOME | 5,169 | 5,086 | ||
3
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
(Financial figures are expressed in Hong Kong Dollar)
At 30 Jun 2019 | At 31 Dec 2018 | ||||||||
Current | Non-current | Total | Current | Non-current | Total | ||||
Note | $m | $m | $m | $m | $m | $m | |||
ASSETS | |||||||||
Cash and cash equivalents | 11 | 114,532 | - | 114,532 | 121,196 | - | 121,196 | ||
Financial assets measured at fair value | |||||||||
through profit or loss | 11 | 48,623 | 50 | 48,673 | 61,004 | - | 61,004 | ||
Financial assets measured at fair value | |||||||||
through other comprehensive income | 11 | 4,247 | - | 4,247 | 3,755 | - | 3,755 | ||
Financial assets measured at amortised cost | 11 | 41,502 | 398 | 41,900 | 31,487 | 398 | 31,885 | ||
Accounts receivable, prepayments and deposits | 12 | 14,038 | 21 | 14,059 | 18,341 | 21 | 18,362 | ||
Interests in joint ventures | - | 69 | 69 | - | 63 | 63 | |||
Goodwill and other intangible assets | - | 18,193 | 18,193 | - | 18,019 | 18,019 | |||
Fixed assets | - | 1,512 | 1,512 | - | 1,625 | 1,625 | |||
Right-of-use assets | 13 | - | 2,328 | 2,328 | - | - | - | ||
Lease premium for land | - | 20 | 20 | - | 20 | 20 | |||
Deferred tax assets | - | 20 | 20 | - | 19 | 19 | |||
Total assets | 222,942 | 22,611 | 245,553 | 235,783 | 20,165 | 255,948 | |||
LIABILITIES AND EQUITY | |||||||||
Liabilities | |||||||||
Financial liabilities at fair value through profit or loss | 14 | 39,439 | - | 39,439 | 53,915 | - | 53,915 | ||
Margin deposits, Mainland security and settlement | |||||||||
deposits, and cash collateral from Clearing | |||||||||
Participants | 15 | 134,127 | - | 134,127 | 123,728 | - | 123,728 | ||
Accounts payable, accruals and other liabilities | 16 | 9,081 | - | 9,081 | 18,316 | 53 | 18,369 | ||
Deferred revenue | 672 | 411 | 1,083 | 1,000 | 418 | 1,418 | |||
Taxation payable | 1,202 | - | 1,202 | 678 | - | 678 | |||
Other financial liabilities | 65 | - | 65 | 59 | - | 59 | |||
Participants' contributions to Clearing House Funds | 17 | 12,374 | - | 12,374 | 14,787 | - | 14,787 | ||
Lease liabilities | 163 | 2,223 | 2,386 | - | - | - | |||
Borrowings | 18 | 252 | 163 | 415 | 1,005 | 161 | 1,166 | ||
Provisions | 103 | 102 | 205 | 93 | 89 | 182 | |||
Deferred tax liabilities | - | 743 | 743 | - | 743 | 743 | |||
Total liabilities | 197,478 | 3,642 | 201,120 | 213,581 | 1,464 | 215,045 | |||
Equity | |||||||||
Share capital | 19 | 29,702 | 27,750 | ||||||
Shares held for Share Award Scheme | 19 | (681) | (682) | ||||||
Employee share-based compensation reserve | 20 | 318 | 218 | ||||||
Hedging and revaluation reserves | (5) | (6) | |||||||
Exchange reserve | (122) | (84) | |||||||
Designated reserves | 21 | 547 | 523 | ||||||
Reserve relating to written put options to | |||||||||
non-controlling interests | (369) | (369) | |||||||
Retained earnings | 14,730 | 13,379 | |||||||
Equity attributable to shareholders of HKEX | 44,120 | 40,729 | |||||||
Non-controlling interests | 313 | 174 | |||||||
Total equity | 44,433 | 40,903 | |||||||
Total liabilities and equity | 245,553 | 255,948 | |||||||
Net current assets | 25,464 | 22,202 | |||||||
4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
(Financial figures are expressed in Hong Kong Dollar)
Attributable to shareholders of HKEX | |||||||||||||
Share capital | Employee | Reserve | |||||||||||
and shares held | share-based | Hedging | relating to written | ||||||||||
for Share Award | compensation | and | Designated | put options to | Non- | ||||||||
Scheme | reserve | revaluation | Exchange | reserves | non-controlling | Retained | controlling | Total | |||||
(note 19) | (note 20) | reserves | reserve | (note 21) | interests | earnings | Total | interests | equity | ||||
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | ||||
At 1 Jan 2019, as previously reported | 27,068 | 218 | (6) | (84) | 523 | (369) | 13,379 | 40,729 | 174 | 40,903 | |||
Effect of adoption of HKFRS 16 (note 2) | - | - | - | - | - | - | (8) | (8) | - | (8) | |||
At 1 Jan 2019, as restated | 27,068 | 218 | (6) | (84) | 523 | (369) | 13,371 | 40,721 | 174 | 40,895 | |||
Profit for the period | - | - | - | - | - | - | 5,205 | 5,205 | (2) | 5,203 | |||
Other comprehensive income | - | - | 1 | (38) | - | - | - | (37) | 3 | (34) | |||
Total comprehensive income | - | - | 1 | (38) | - | - | 5,205 | 5,168 | 1 | 5,169 | |||
Total transactions with shareholders of HKEX, recognised | |||||||||||||
directly in equity: | |||||||||||||
- 2018 second interim dividend at $3.07 per share | - | - | - | - | - | - | (3,830) | (3,830) | - | (3,830) | |||
- Unclaimed HKEX dividends forfeited | - | - | - | - | - | - | 8 | 8 | - | 8 | |||
- Shares issued in lieu of cash dividends | 1,940 | - | - | - | - | - | - | 1,940 | - | 1,940 | |||
- Shares purchased for Share Award Scheme | (3) | - | - | - | - | - | - | (3) | - | (3) | |||
- Vesting of shares of Share Award Scheme | 16 | (15) | - | - | - | - | (1) | - | - | - | |||
- Employee share-based compensation benefits | - | 115 | - | - | - | - | - | 115 | - | 115 | |||
- Tax relating to Share Award Scheme | - | - | - | - | - | - | 1 | 1 | - | 1 | |||
- Non-controlling interests on acquisition of a subsidiary | |||||||||||||
(note 23) | - | - | - | - | - | - | - | - | 138 | 138 | |||
- Transfer of reserves | - | - | - | - | 24 | - | (24) | - | - | - | |||
1,953 | 100 | - | - | 24 | - | (3,846) | (1,769) | 138 | (1,631) | ||||
At 30 Jun 2019 | 29,021 | 318 | (5) | (122) | 547 | (369) | 14,730 | 44,120 | 313 | 44,433 |
5
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HKEx - Hong Kong Exchanges and Clearing Ltd. published this content on 14 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2019 09:51:01 UTC