The Review 2016

Income 8,623 9,529 Expenditure (8,738) (8,228) (Deficit)/Surplus from Operations (115) 1,301 Share of Surplus of Joint Ventures 16 59 and Associates Loss on Disposal of a Joint Venture (2) - (Deficit)/Surplus for the year (101) 1,360 Other Comprehensive (Loss)/Income (12) 2 Total Comprehensive (Loss)/Income (113) 1,362 Land Holdings Sites Lot Area (in Hectares) Hong Kong Island Main Campus 17.0 Medical Campus 4.1 Other Sites on Pokfulam 22.5 New Territories Kadoorie Centre 9.6 All 53.3 Halls and Student Residences Number of Places Number Existing 6,500 Planned 1,858 SPACE Distribution of Space by Categories Based on Total Gross Covered Floor Area (as of June 2016) Category Gross Covered Floor Area (in sq. m.) % Academic Space 315,450 44.1% Central Libraries 44,128 6.2% Central Administration and Maintenance 29,598 4.1% Student and Staff Amenities 29,880 4.2% Sports Facilities 14,459 2.0% Student Halls of Residence and Staff Quarters 275,627 38.5% Others (Including HKU Museum and HKU Press) 5,913 0.8% All Categories 715,055 100% HKU SPACE Gross Covered Floor Area (as of June 2016) 44,147 sq. m. AN EXTRACT FROM THE UNIVERSITY’S ANNUAL ACCOUNTS 2015–16 Overview The financial year 2015-16 was the roll-over year extended from the Triennium 2012-15 which also marked the graduation of the first cohort of undergraduate students under the 4-year curriculum structure. The Group’s consolidated financial results recorded a deficit of $113 million. It was largely attributable to the negative return on investment resulting from continuing challenging global economic environment. 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 effective and relevant to the Group’s operation and complied with the Statement of Recommended Pract ice for the Universi ty Grants Commi ttee (UGC)-funded Institutions. Results for the year The Group’s consolidated results for the year ended June 30, 2016 are summarised as follows: 2016 $ million 2015 $ million The consolidated income for the year 2015-16 was $8,623 million, a decrease of $906 million as compared to last year. This was mainly due to the negative return resulting from the continuing challenging global economic environment but partly offset by the increase in government subvention as a result of increased student number. On consolidated expenditure, a total of $8,738 million was incurred for the year (2014-15: $8,228 million) representing an increase of 6.2%, of which $6,309 million (2014-15: $5,906 million) was spent on teaching/learning and research activities of the Group. Financial Outlook As the financial year 2015-16 ends, the University has entered into the first year of the 2016-19 triennium. In the new triennium, UGC would continue to allocate funding for the additional year under the 3+3+4 academic structure at marginal rate. The University community continues to enjoy the state-of-the-art learning environment. There are however corresponding funding pressures to support the expanded infrastructure base and the enhancement and maintenance of existing facilities. In addition, the University will continue to make investments in information technology systems to support expanded teaching and learning, research and knowledge exchange and student activities. Guided by the 3+1 Is strategic themes of internationalisation, innovation, interdisciplinarity and impact, the University is committed to invest significant resources towards its goals. To support the many developments, the University shall remain prudent and yet be creative in managing its resources. It will continue to adopt financial strategy to fulfil its commitments and to pursue the aspiration of Asia’s Global University, and would be cautious of the rapidly changing environment both locally and globally that could impact on the University. The Universi ty’s Annual Accounts can be found at ht tp: // www.hku.hk/finance/financial_report. Any correspondence or feedback on this extract or the accounts should be addressed to e-mail: finance@fo.hku.hk . 48 49