AN EXTRACT FROM THE UNIVERSITY’S ANNUAL ACCOUNTS 2022-23
OVERVIEW
The financial year 2022–23 was the first year of the 2022–25 triennium.
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 surplus of HK$1,961 million. Compared to the previous year, there was a reverse from deficit to surplus in 2022–23 as investment performance improved.
RESULTS FOR THE YEAR
The Group’s consolidated results for the year ended 30 June, 2023 are summarised as follows:
| 2023 HK$ (in million) |
2022 HK$ (in million) |
|
|---|---|---|
| Income Expenditure |
14,160 (12,201) |
10,628 (11,610) |
| Surplus / (Deficit) from Operations Share of Surplus of Joint Ventures and Associates |
1,959 15 |
(982) 14 |
| Surplus / (Deficit) for the Year Other Comprehensive Loss |
1,974 (13) |
(968) (11) |
| Total Comprehensive Income / (Loss) | 1,961 | (979) |
The consolidated income for the year 2022–23 was HK$14,160 million, an increase of HK$3,532 million from last year. This was mainly due to reverse from investment loss to gain earned during the year, as well as increase in subventions from the UGC and steady growth in tuition fees.
The consolidated expenditure increased slightly by 5% to HK$12,201 million (2021–22: HK$11,610 million), of which HK$8,877 million (2021–22: HK$8,614 million) was expended on the Group’s teaching, learning and research activities.
FINANCIAL OUTLOOK
As the financial year 2022–23 ends, the University has entered into the second year of the triennium of 2022–25. The University continues its 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’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, 2023
In thousands of Hong Kong dollars
| 2023 | 2022 | |
|---|---|---|
| Revenue | ||
| Government Subventions | 6,572,361 | 6,164,559 |
| Tuition, Programmes and Other Fees | 4,813,732 | 4,114,089 |
| Donations and Benefactions | 636,242 | 1,017,597 |
| Auxiliary Services | 359,105 | 351,039 |
| Interest and Investment Gain / (Loss) , Net | 456,007 | (2,161,783) |
| Other Income, Net | 1,322,727 | 1,142,769 |
| 14,160,174 | 10,628,270 | |
| Expenditure | ||
| Teaching, Learning and Research | ||
| Teaching and Research | 7,939,736 | 7,678,155 |
| Library | 201,709 | 210,428 |
| Central Computing Facilities | 237,050 | 227,698 |
| Other Academic Services | 498,737 | 497,635 |
| Institutional Support | ||
| Management and General | 608,902 | 569,612 |
| Premises and Related Expenses | 1,786,947 | 1,468,355 |
| Student and General Education Services | 686,312 | 690,154 |
| Other Activities | 241,848 | 268,554 |
| 12,201,241 | 11,610,591 | |
| Surplus / (Deficit) for the Year before Share of Joint Venture and Associates | 1,958,933 | (982,321) |
| Share of Surplus of a Joint Venture | 15,392 | 14,520 |
| Share of Deficit of Associates | - | (348) |
| Surplus / (Deficit) for the Year | 1,974,325 | (968,149) |
| Other Comprehensive Loss | ||
| Items that may be recognised in the Consolidated Statement of Comprehensive Income | ||
| Exchange Differences | (11,900) | (4,364) |
| Share of Other Comprehensive Loss of a Joint Venture | (803) | (1,201) |
| Items that will not be recognised subsequently in the Consolidated Statement of Comprehensive Income | ||
| Re-measurement of Defined Benefit Retirement Scheme Assets | (431) | (5,185) |
| (13,134) | (10,750) | |
| Total Comprehensive Income / (Loss) for the Year | 1,961,191 | (978,899) |
| Attributable to | ||
| UGC Funds | 458,169 | 88,882 |
| Restricted Funds | (236,896) | (960,997) |
| Other Funds | 1,739,918 | (106,784) |
| 1,961,191 | (978,899) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at June 30, 2023
In thousands of Hong Kong dollars
| 2023 | 2022 | |
|---|---|---|
| Assets | ||
| Non-Current Assets | ||
| Property, Plant and Equipment | 11,899,181 | 10,264,655 |
| Right-of-Use Assets | 2,085,525 | 2,135,476 |
| Intangible Assets | 12,256 | 11,344 |
| Interests in Associates | - | - |
| Interests in Joint Ventures | 305,527 | 290,938 |
| Financial Investments at Amortised Cost | 1,037,138 | 1,451,294 |
| Financial Assets at Fair Value through Profit or Loss | 13,790,225 | 15,615,862 |
| Loans Receivable and Assets Classified as Held for Sale | 2,802 | 2,957 |
| Accounts Receivable, Prepayments and Deposits | 1,002,885 | 794,953 |
| Defined Benefit Retirement Scheme Assets | 14,665 | 14,801 |
| 30,150,204 | 30,582,280 | |
| Current Assets | ||
| Financial Investments at Amortised Cost | 367,776 | 503,591 |
| Financial Assets at Fair Value through Profit or Loss | 740,204 | 268,842 |
| Loans Receivable and Assets Classified as Held for Sale | 84,943 | 107,190 |
| Inventories | 2,320 | 3,014 |
| Accounts Receivable, Prepayments and Deposits | 1,906,172 | 1,489,462 |
| Amount Due from a Joint Venture | 5,360 | 16,936 |
| Bank Deposits with Original Maturity over Three Months | 11,554,796 | 8,147,451 |
| Cash and Cash Equivalents | 1,748,068 | 2,264,926 |
| 16,409,639 | 12,801,412 | |
| Total Assets | 46,559,843 | 43,383,692 |
| Funds | ||
| UGC Funds | 2,794,904 | 2,383,799 |
| Restricted Funds | 10,846,015 | 10,355,117 |
| Other Funds | 18,302,314 | 17,243,126 |
| Total Funds | 31,943,233 | 29,982,042 |
| Liabilities | ||
| Non-Current Liabilities | ||
| Accounts Payable and Accruals | 170,643 | 94,406 |
| Employee Benefit Accruals | 16,234 | 24,209 |
| Loans and Borrowings | 95,008 | 95,008 |
| Lease Liabilities | 224,683 | 290,348 |
| Deferred Capital Funds | 6,657,820 | 4,514,788 |
| 7,164,388 | 5,018,759 | |
| Current Liabilities | ||
| Accounts Payable and Accruals | 3,594,484 | 3,956,541 |
| Employee Benefit Accruals | 773,927 | 859,164 |
| Loans and Borrowings | 50,310 | 60,270 |
| Lease Liabilities | 109,109 | 97,804 |
| Deferred Income | 2,924,392 | 3,409,112 |
| 7,452,222 | 8,382,891 | |
| Total Liabilities | 14,616,610 | 13,401,650 |
| Total Funds and Liabilities | 46,559,843 | 43,383,692 |
| Net Current Assets | 8,957,417 | 4,418,521 |
| Total Assets Less Current Liabilities | 39,107,621 | 35,000,801 |