Hong Kong Exchanges and Clearing Limited

Good afternoon, ladies and gentlemen. Welcome to HKEX 2026 Interim Results Analyst Presentation. We're very pleased to have with us today our Chief Executive Officer, Ms. Bonnie Y. Chan, our COO, Ms. Vanessa Lau, our Group CFO, Mr. Herbert Hui, our Group CIO, Mr. Richard Leung, and our Head of Markets, Mr. Gregory Yu. Bonnie and Herbert will first give a presentation on our business highlights, Good afternoon, everyone.

Thank you for joining us today. I'm pleased to be presenting our interim results for 2026. In a few moments, Herbert Hui, our group chief financial officer, will share more details on the numbers. After that, I will discuss some of our business highlights. And finally, the team and I will be happy to take your questions. So let's kick off with a quick overview of the results. HK Yates delivered an exceptional first half of 2026, reporting the group's best-ever half-yearly revenue and profit. These results surpassed the previous records set in the second half of 2025. Herbert will talk through these numbers in more detail shortly. Now, driven by optimism in China's outlook, underpinned by exciting developments in innovation, there was renewed global investor interest in our markets. The Hong Kong cash market went from strength to strength, with volumes reaching a record half-yearly high. We also saw strong performance across the Hong Kong derivatives, ETP, and commodities markets. With the continued momentum we have been seeing, we are confident that the Hong Kong's markets have regained Therefore, our focus is now on execution. In particular, sustaining the momentum, making our markets even more competitive, building the multi-asset ecosystem that will support Hong Kong's next phase of growth, and strengthening our connectivity to the major markets and liquidity pools of the region. Highlights of this in the first half include developments in FIC and our index business. The Competitiveness of our Listing Framework, Market Infrastructure, Operational and Technological Enhancements, and Increased Connectivity with Exchanges in Southeast Asia and Central Asia. I'll discuss our core business strengths, our focus on diversification, and our most important strategic initiatives in more detail shortly. But first, let me hand over a bit to go through the results. Over to you, Herbert.

Thank you, Bonnie. Good afternoon to you all. My name is Herbert Hui, and I'm pleased to be here to share with you highlights of our 2026 first half financial results. HKEX delivered a record financial performance in first half 2026, with revenue and profit both reaching record half yearly highs. Driven by positive market sentiment, strong interest in Chinese mainland technology and AI-related stocks, Sustained momentum in IPO activity and active participation from both international and Chinese mainland investors. Trade volume across the cash market, derivatives market and Stock Connect reached half-yearly record highs in first half 26. The group's commodities market also performed strongly with LME chargeable ADV reaching a record half-yearly high. The group's revenue and other income of $16.7 billion was 19%, higher than first half 2025. Profit after tax was $10.6 billion and EPS was $8.36, both up 24% compared to the year before. The Board has declared a first interim dividend of $7.43 per share representing 90% of the group's profit attributable to shareholders, excluding the results of HKEX Foundation. Turning to the detailed financials for the half year, trading volumes reached record half-yearly highs across all markets in first half 26. Headline ADT increased by 18% year-on-year to $283 billion, and both Northbound and Southbound Stock Connect reached all-time highs. The derivatives and commodities market also performed strongly with trading volumes increasing by 6% and 18% respectively, compared to first half last year. Driven by the record trading volumes, revenue and other income of the group increased by 19% compared with first half last year, reflecting higher trading and clearing fees as well as increased depository and listing fees. The increase was partly offset by lower net investment income from margin funds attributable to higher rebates payable to participants following the implementation of revised margin rebate arrangement starting October last year, and also attributable to lower investment returns. OPAC increased by 6% primarily due to higher staff costs, IT costs and foundation donations Partly offset by the non-recurring FCA fine of $19 million paid in 25 and an insurance claim of $24 million received in 26, both relating to the previous LME nickel incident. Excluding Foundation Donations FCA fine and the insurance claim, OPEX was up 9%. Turning to next page where we look at the Q2 26 financials against the same period last year. Following a strong first quarter of 26, market activity accelerated further in Q2, with headline ADT reaching a record quarterly high of $289 billion. Revenue and profit increased by 18% and 21% respectively against Q2 last year. The growth was driven by higher trading and carrying fees from increased cash derivatives and commodities market volumes. Partly offset by lowering the investment income from margin funds due to higher rebate payable to participants under the revised margin rebate arrangements. Moving on to 2026 results against the historical trend line. Driven by the sustained market momentum, the financial performance in the first half of 2026 is above the historical trend line. Throughout the years, HKEX continues to maintain an attractive EBITDA margin Reflecting the successful diversification of our business in recent years and our cost discipline. As we have been building and enhancing our product offerings market and microstructure and technology platform over the last few years, we were well positioned to capture the opportunities arising from this positive momentum. Next, we take a look at our investment income. Total net investment income for first half 26 was $2.56 billion, representing a decrease of 11% compared with first half last year. This included a non-recurring valuation gain of $298 million in our unlisted minority equity investment. Excluding this gain, net investment income was 21% lower than first half 25, primarily reflecting lower margin fund income due to higher rebates to participants, as well as reduced investment returns, reflecting a lower interest rate environment for reinvestment. Looking ahead into second half 26, net investment income is expected to continue to be affected by the revised margin correctional arrangements. Fluctuating Margin Fund Size and Movements in Hong Kong Dollar Interest Rates Now let's look at our operating expenses. Our tax was up 6% in first half 26 compared with first half 25 due to the increase in staff costs and inflationary increase in other expenses, partly offset by a $90 million FCA fine in 25 and an insurance claim relating to nickel litigation of $24 million received in 26. Excluding these non-recurring items, OPEX was up 9%. This reflects partly the group's investment in Talents to build our multi-asset ecosystem. In summary, our record first half 26 financial results reflected record market trading volumes and benefited from our past and ongoing execution of various strategic initiatives in products, market structure and systems. With that, I will now hand back to Bonnie for our business update and outlook.