HKEx Reports Interim Profit after Tax of $554 million

Corporate

06 Sep 2000

Hong Kong Exchanges and Clearing Limited (HKEx) has reported an unaudited consolidated profit after taxation of $554 million for the six months ended 30 June 2000.

The directors have declared an interim dividend of $0.08 per share. The share register will be closed from 9 to 11 October 2000 inclusive, and dividend warrants will be sent to shareholders on or about 12 October.

Average daily turnover value on the stock market rose by 134 per cent to $14.8 billion in the period January to June 2000, compared to the first six months of 1999, while average daily trading volume on the futures market fell by 36 per cent to 19,223 contracts.

Group turnover for the first half of the year was $1,227 million, up 50 per cent from a year ago, and operating expenses fell by one per cent to $600 million.

"The process of integrating the businesses of the Group's subsidiaries will continue in the second half of the current financial year," said Charles Lee, HKEx chairman. "As a substantial part of the Group's income is from transaction levy, clearing and settlement fees and interest income on margin funds, the results for the second six months of the current financial year will be highly dependent on the level of activity on the Stock Exchange and Futures Exchange," Mr Lee said.

"HKEx made good progress during the first six months of its financial year as Hong Kong's economy continued to improve after some two years of recession," said Kwong Ki-chi, HKEx chief executive.

"The economic forecasts for Hong Kong, and internationally, are generally positive," Mr Kwong noted. "These give cause for feeling reasonably optimistic about HKEx's results for the whole year."

2000 INTERIM RESULTS

	For the half year to 30 Jun
(Expressed in Hong Kong dollars)	2000	1999	Change
Key Market Turnover Statistics
Average daily turnover value on the Stock Exchange	$14.8 billion	$6.3 billion	+134%
Average daily number of derivatives contracts traded on the Futures Exchange	19,223	29,828	-36%
Financial Highlights	(In $ million)
Turnover	1,227	820	+50%
Operating expenses	(600)	(606)	-1 %
Profit before taxation	627	214	+193%
Taxation	(73)	(1)	-
Profit attributable to shareholders	554	213	+160%
Basic earnings per share	$0.53	$0.20	+160%
Interim dividend per share	$0.08	-	-
	At 30 Jun 2000	At 31 Dec 1999	Change
Shareholders funds	$4.7 billion	$4.1 billion	+13%
Total assets*	$14.1 billion	$14.5 billion	-3 %

* The Group's total assets included the margin funds received from participants on derivatives contracts

CHIEF EXECUTIVE'S STATEMENT

HKEx is unique among leading international exchanges in that it operates both the cash and derivatives markets, and provides a comprehensive range of pre- and post-trading services.

It made good progress during the first six months of its financial year as Hong Kong's economy continued to improve after some two years of recession.

The outlook for the rest of the year depends, of course, on the performance of the various markets operated by HKEx. The economic forecasts for Hong Kong, and internationally, are generally positive. These give cause for feeling reasonably optimistic about HKEx's results for the year as a whole.

Updated 06 Sep 2000