Hong Kong Exchanges and Clearing (388) investor relations material

Executive summary

• Achieved record quarterly revenue of HK$8.2b, up 20% YoY and 12% QoQ, and record profit attributable to shareholders of HK$5.2b, up 27% YoY and 20% QoQ, driven by robust global capital flows and strong market activity across equities, commodities, and derivatives.

• Hong Kong maintained its position as the world's leading IPO venue, with IPO funds raised nearly six times higher than Q1 2025.

• Strategic initiatives advanced, including market structure reforms, new product launches, and enhanced connectivity with regional exchanges.

Financial highlights

• Core business revenue reached HK$7.7b, up 22% YoY and 15% QoQ; total revenue and other income rose 20% YoY to HK$8,203m.

• EBITDA rose to HK$6.6b, up 25% YoY and 17% QoQ, with margin improving to 81%, up 3 percentage points from Q1 2025.

• Profit attributable to shareholders grew 27% YoY to HK$5.2b; basic EPS increased to HK$4.10, up 27% YoY and 20% QoQ.

• Operating expenses increased 2% YoY, mainly due to staff and IT costs, but fell 5% sequentially.

• Net investment income totaled HK$1,281m, slightly down YoY due to lower external portfolio gains.

Outlook and guidance

• Continued focus on enhancing market quality, infrastructure resilience, and expanding product offerings, including multi-asset tokenization.

• Net investment income in 2026 expected to be influenced by margin collateral changes, fund size, HIBOR, and portfolio redemption.

• Preparing for the launch of the Uncertificated Securities Market regime in Nov 2026 and implementing Phase 2 of minimum spreads reduction around mid-2026, subject to readiness and approval.

• Ongoing consultations on listing framework competitiveness and accelerated settlement.