AN EXTRACT FROM THE UNIVERSITY’S ANNUAL ACCOUNTS 2021-22
OVERVIEW
The financial year 2021–22 was the last year of the 2019–22 triennium.
In face of the persistence of the COVID-19 pandemic locally and globally, the University adopted measures to maintain a safe and healthy environment on campus. With outstanding contributions from its members, the University also provided a range of support to help society combat COVID-19. This included the turning of the historic Loke Yew Hall into the HKU LYH Community Vaccination Centre to provide BioNTech vaccinations to citizens. This centre was staffed by a team of volunteer doctors from the University, and retired doctors and nurses.
The Group demonstrated its commitment to provide world-class education and research, and delivered impact through internationalisation, innovation and interdisciplinarity.
In preparing the consolidated financial statements, the Group has adopted certain new / revised Hong Kong Financial Reporting Standards (HKFRS) issued by the Hong Kong Institute of Certified Public Accountants which are relevant and applicable to the Group’s operation and comply with the Statement of Recommended Practice for the University Grants Committee (UGC)-Funded Institutions.
During the financial year, the Group recorded a deficit of HK$979 million, largely due to the negative return on investments resulting from the challenging financial markets. Investment performance retreated as inflation and interest rates globally reversed course and started to climb, thus leading to corrections in almost all asset classes, including bonds and equities.
RESULTS OF THE YEAR
The Group’s consolidated results for the year ended 30 June, 2022 are summarised as follows:
| 2022 HK$ (in million) |
2021 HK$ (in million) |
|
|---|---|---|
| Income Expenditure |
10,628 (11,610) |
14,649 (11,251) |
| (Deficit) / Surplus from Operations Share of Surplus of Joint Ventures and Associates |
(982) 14 |
3,398 19 |
| (Deficit) / Surplus for the Year Other Comprehensive (Loss) / Income |
(968) (11) |
3,417 22 |
| Total Comprehensive (Loss) / Income | (979) | 3,439 |
The consolidated income for the year 2021–22 was HK$10,628 million, a decrease of HK$4,021 million from last year. This was mainly due to investment losses incurred during the year.
The consolidated expenditure increased slightly by 3% to HK$11,610 million (2020–21: HK$11,251 million), of which HK$8,614 million (2020–21: HK$8,358 million) was expended on the Group’s teaching, learning and research activities.
FINANCIAL OUTLOOK
The financial year 2021–22 concluded the triennium of 2019–22. The University has a strong commitment to intellectual freedom, liberty and diversity.
For the pursuit of the University’s education mission, the University will continue to invest in human resources, infrastructure and technology upgrades in order to bring high calibre professors and attract top-scoring students. The University has kick-started a number of capital projects like the Tech Landmark at University Drive, building an innovative science and engineering hub of research and technology; the iconic academic, cultural and sports facilities complex at Pokfield Road site; and various student hostels.
The University will remain prudent and yet flexible in financial management and will continue to ride on its successes to take it to the next level and fulfilling its commitment to be Asia’s leading global university.
The University’s Annual Accounts can be found at www.feo.hku.hk/finance/.
Any correspondence or feedback on this extract or the accounts should be emailed to finance-mail@hku.hk.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended June 30, 2022
In thousands of Hong Kong dollars
| 2022 | 2021 | |
|---|---|---|
| Revenue | ||
| Government Subventions | 6,164,559 | 5,917,304 |
| Tuition, Programmes and Other Fees | 4,114,089 | 3,459,675 |
| Donations and Benefactions | 1,017,597 | 579,719 |
| Auxiliary Services | 351,039 | 345,805 |
| Interest and Investment (Loss) / Gain | (2,161,783) | 3,301,846 |
| Other Income, Net | 1,142,769 | 1,044,264 |
| 10,628,270 | 14,648,613 | |
| Expenditure | ||
| Teaching, Learning and Research | ||
| Teaching and Research | 7,678,155 | 7,389,199 |
| Library | 210,428 | 240,778 |
| Central Computing Facilities | 227,698 | 228,655 |
| Other Academic Services | 497,635 | 499,054 |
| Institutional Support | ||
| Management and General | 569,612 | 536,966 |
| Premises and Related Expenses | 1,468,355 | 1,509,766 |
| Student and General Education Services | 690,154 | 586,118 |
| Other Activities | 268,554 | 260,380 |
| 11,610,591 | 11,250,916 | |
| (Deficit) / Surplus for the Year before Share of Joint Ventures and Associates | (982,321) | 3,397,697 |
| Share of Surplus of Joint Ventures | 14,520 | 19,796 |
| Share of Deficit of Associates | (348) | (186) |
| (Deficit) / Surplus for the Year | (968,149) | 3,417,307 |
| Other Comprehensive (Loss) / Income | ||
| Items that may be recognised in the Consolidated Statement of Comprehensive Income | ||
| Exchange Differences | (4,364) | 12,483 |
| Share of Other Comprehensive (Loss) / Income of a Joint Venture | (1,201) | 452 |
| Items that will not be recognised subsequently in the Consolidated Statement of Comprehensive Income | ||
| Re-measurement of Defined Benefit Retirement Scheme Assets | (5,185) | 8,699 |
| (10,750) | 21,634 | |
| Total Comprehensive (Loss) / Income for the Year | (978,899) | 3,438,941 |
| Attributable to | ||
| UGC Funds | 88,882 | 389,803 |
| Restricted Funds | (960,997) | 735,050 |
| Other Funds | (106,784) | 2,314,088 |
| (978,899) | 3,438,941 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at June 30, 2022
In thousands of Hong Kong dollars
| 2022 | 2021 | |
|---|---|---|
| Assets | ||
| Non-Current Assets | ||
| Property, Plant and Equipment | 10,264,655 | 8,936,554 |
| Right-of-Use Assets | 2,135,476 | 1,835,811 |
| Intangible Assets | 11,344 | 9,207 |
| Interests in Associates | - | 5,900 |
| Interests in Joint Ventures | 290,938 | 278,265 |
| Financial Investments at Amortised Cost | 1,451,294 | 1,885,183 |
| Financial Assets at Fair Value through Profit or Loss | 15,615,862 | 17,555,384 |
| Loans Receivable and Assets Classified as Held for Sale | 2,957 | 3,171 |
| Accounts Receivable, Prepayments and Deposits | 794,953 | 732,248 |
| Defined Benefit Retirement Scheme Assets | 14,801 | 20,231 |
| 30,582,280 | 31,261,954 | |
| Current Assets | ||
| Financial Investments at Amortised Cost | 503,591 | 521,254 |
| Financial Assets at Fair Value through Profit or Loss | 268,842 | 348,186 |
| Loans Receivable and Assets Classified as Held for Sale | 107,190 | 113,453 |
| Inventories | 3,014 | 2,226 |
| Accounts Receivable, Prepayments and Deposits | 1,489,462 | 1,255,074 |
| Amount Due from a Joint Venture | 16,936 | 19,710 |
| Bank Deposits with Original Maturity over Three Months | 8,147,451 | 6,629,463 |
| Cash and Cash Equivalents | 2,264,926 | 2,954,454 |
| 12,801,412 | 11,843,820 | |
| Total Assets | 43,383,692 | 43,105,774 |
| Funds | ||
| UGC Funds | 2,383,799 | 2,342,953 |
| Restricted Funds | 10,355,117 | 10,820,469 |
| Other Funds | 17,243,126 | 17,797,519 |
| Total Funds | 29,982,042 | 30,960,941 |
| Liabilities | ||
| Non-Current Liabilities | ||
| Accounts Payable and Accruals | 94,406 | 55,481 |
| Employee Benefit Accruals | 24,209 | 42,863 |
| Loans and Borrowings | 95,008 | 95,008 |
| Lease Liabilities | 290,348 | 141,149 |
| Deferred Capital Funds | 4,514,788 | 3,600,457 |
| 5,018,759 | 3,934,958 | |
| Current Liabilities | ||
| Accounts Payable and Accruals | 3,956,541 | 3,643,459 |
| Amount Due to a Joint Venture | - | 2,040 |
| Employee Benefit Accruals | 859,164 | 888,419 |
| Loans and Borrowings | 60,270 | 67,200 |
| Lease Liabilities | 97,804 | 91,288 |
| Deferred Income | 3,409,112 | 3,517,469 |
| 8,382,891 | 8,209,875 | |
| Total Liabilities | 13,401,650 | 12,144,833 |
| Total Funds and Liabilities | 43,383,692 | 43,105,774 |
| Net Current Assets | 4,418,521 | 3,633,945 |
| Total Assets Less Current Liabilities | 35,000,801 | 34,895,899 |