Hong Kong Exchanges and Clearing : Condensed Consolidated Financial Statements For the six months ended 30 June 2022 (Unaudited)pdf

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 2022

(Unaudited)

As at 17 August 2022, 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 Nicholas Charles ALLEN, Mr Apurv BAGRI,

Mr CHEAH Cheng Hye, Ms CHEUNG Ming Ming, Anna, Mrs CHOW WOO Mo Fong, Susan, Mr Rafael GIL-TIENDA, Mr HUNG Pi Cheng, Benjamin, Ms LEUNG Nisa Bernice Wing-Yu, Mr LEUNG Pak Hon, Hugo, Mr YIU Kin Wah, Stephen and Mr ZHANG Yichen, and

one Executive Director, Mr Alejandro Nicolas AGUZIN, who is also the Chief Executive of HKEX.

1

CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)

(Financial figures are expressed in Hong Kong Dollar)

				Six months		Six months
				ended		ended
				30 Jun 2022		30 Jun 2021
			Note	$m		$m
	Trading fees and trading tariffs	4	3,553	4,124
	Clearing and settlement fees		2,291	2,672
	Stock Exchange listing fees		994	1,067
	Depository, custody and nominee services fees		647	889
	Market data fees		546	512
	Other revenue		757	786
	Revenue		8,788	10,050
	Investment income		299		796
	Interest rebates to Participants		(210)		(22)
	Net investment income	5	89	774
	HKEX Foundation donation income		37	74
	Sundry income		23	11
	Revenue and other income		8,937	10,909
	Less: Transaction-related expenses	6	(87)	(81)
	Revenue and other income less transaction-related expenses		8,850	10,828
	Operating expenses
	Staff costs and related expenses	7	(1,667)	(1,495)
	Information technology and computer maintenance expenses		(363)	(338)
	Premises expenses		(58)	(57)
	Product marketing and promotion expenses		(50)	(36)
	Professional fees		(77)	(48)
	HKEX Foundation charitable donations		(56)	(69)
	Other operating expenses		(185)	(178)
				(2,456)	(2,221)
	EBITDA*		6,394	8,607
	Depreciation and amortisation		(717)	(662)
	Operating profit		5,677	7,945
	Finance costs	8	(73)	(77)
	Share of profits less losses of joint ventures		42	38
	Profit before taxation		5,646	7,906
	Taxation	9	(817)	(1,317)
	Profit for the period		4,829	6,589
	Profit/(loss) attributable to:
	-	Shareholders of HKEX		4,836	6,610
	-	Non-controlling interests		(7)	(21)
	Profit for the period		4,829	6,589
	Basic earnings per share	10(a)	$3.82	$5.22
	Diluted earnings per share	10(b)	$3.82	$5.21

• 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 2022	30 Jun 2021
				$m	$m
		Profit for the period	4,829	6,589
		Other comprehensive income
		Items that may be reclassified subsequently to profit or loss:
		Currency translation differences of foreign subsidiaries	66	29
		Cash flow hedges, net of tax	(17)	(2)
		Changes in fair value of financial assets measured at fair value
			through other comprehensive income, net of tax	(247)	10
		Other comprehensive (loss)/income	(198)	37
		Total comprehensive income	4,631	6,626
		Total comprehensive income/(loss) attributable to:
-	Shareholders of HKEX	4,642	6,646
-	Non-controlling interests	(11)	(20)
		Total comprehensive income	4,631	6,626

3

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

(Financial figures are expressed in Hong Kong Dollar)

			At 30 Jun 2022				At 31 Dec 2021
		Current	Non-current	Total		Current	Non-current	Total
	Note	$m	$m	$m		$m	$m	$m
Assets
Cash and cash equivalents	12	209,501	-	209,501	181,361	-	181,361
Financial assets measured at fair value	12	169,507	940	170,447	99,915	946	100,861
through profit or loss
Financial assets measured at fair value	12	13,459	-	13,459	9,755	-	9,755
through other comprehensive income
Financial assets measured at amortised cost	12	70,057	216	70,273	51,302	526	51,828
Accounts receivable, prepayments and deposits	13	26,677	21	26,698	32,717	21	32,738
Tax recoverable		-	-	-	19	-	19
Interests in joint ventures		-	262	262	-	244	244
Goodwill and other intangible assets		-	18,997	18,997	-	18,972	18,972
Fixed assets		-	1,590	1,590	-	1,605	1,605
Right-of-use assets		-	1,750	1,750	-	1,896	1,896
Deferred tax assets		-	69	69	-	25	25
Total assets		489,201	23,845	513,046	375,069	24,235	399,304
Liabilities and equity
Liabilities
Financial liabilities at fair value through profit or loss	14	161,520	-	161,520	91,424	-	91,424
Margin deposits, Mainland security and
settlement deposits, and cash collateral from		249,451	-	249,451
Clearing Participants	15	203,536	-	203,536
Accounts payable, accruals and other liabilities	16	19,877	-	19,877	28,335	-	28,335
Deferred revenue		747	351	1,098	1,100	354	1,454
Taxation payable		1,542	-	1,542	1,153	-	1,153
Other financial liabilities		39	-	39	513	-	513
Participants' contributions to Clearing House Funds	17	26,487	-	26,487	19,182	-	19,182
Lease liabilities		300	1,592	1,892	299	1,760	2,059
Borrowings	18	340	88	428	340	86	426
Provisions		108	96	204	82	98	180
Deferred tax liabilities		-	1,082	1,082	-	1,132	1,132
Total liabilities		460,411	3,209	463,620	345,964	3,430	349,394
Equity
Share capital	19			31,896				31,896
Shares held for Share Award Scheme	19			(861)				(901)
Employee share-based compensation reserve	20			429				306
Hedging and revaluation reserves				(249)				15
Exchange reserve				(47)				(117)
Designated reserves	21			624				623
Reserve relating to written put options to non-
controlling interests				(369)				(369)
Retained earnings				17,730				18,173
Equity attributable to shareholders of HKEX				49,153				49,626
Non-controlling interests				273				284
Total equity				49,426				49,910
Total liabilities and equity				513,046				399,304
Net current assets				28,790				29,105

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 2022	30,995	306	15	(117)	623	(369)	18,173	49,626	284	49,910
	Profit for the period	-	-	-	-	-	-	4,836	4,836	(7)	4,829
	Other comprehensive income	-	-	(264)	70	-	-	-	(194)	(4)	(198)
	Total comprehensive income	-	-	(264)	70	-	-	4,836	4,642	(11)	4,631
	Total transactions with shareholders of HKEX, recognised
	directly in equity:
	- 2021 second interim dividend at $4.18 per share	-	-	-	-	-	-	(5,290)	(5,290)	-	(5,290)
	- Unclaimed HKEX dividends forfeited	-	-	-	-	-	-	15	15	-	15
	- Shares purchased for Share Award Scheme	(42)	-	-	-	-	-	-	(42)	-	(42)
	- Vesting of shares of Share Award Scheme	82	(81)	-	-	-	-	(1)	-	-	-
	- Employee share-based compensation benefits	-	204	-	-	-	-	-	204	-	204
	- UK tax relating to Share Award Scheme	-	-	-	-	-	-	(2)	(2)	-	(2)
	- Transfer of reserves	-	-	-	-	1	-	(1)	-	-	-
			40	123	-	-	1	-	(5,279)	(5,115)	-	(5,115)
	At 30 Jun 2022	31,035	429	(249)	(47)	624	(369)	17,730	49,153	273	49,426

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