The Review 2017

Space Distribution of Space by Categories Based on Total Gross Covered Floor Area (as of June 2017) Land Holdings Halls and Student Residences Category Gross Covered Floor Area (in sq. m.) % Academic Space 315,138 44.1% Central Libraries 44,702 6.3% Central Administration and Maintenance 29,042 4.1% Student and Staff Amenities 29,455 4.1% Sports Facilities 14,441 2.0% Student Halls of Residence and Staff Quarters 275,627 38.6% Others (Including HKU Museum and HKU Press) 5,894 0.8% All Categories 714,299 100% Sites Lot Area (in Hectares) Hong Kong Island 43.6 Main Campus 17.0 Medical Campus 4.1 Other Sites on Pokfulam 22.5 New Territories 9.6 Kadoorie Centre 9.6 All 53.3 2017 $ million 2016 $ million Income 10,830 8,623 Expenditure (9,261) (8,738) Surplus / (Deficit) from Operations 1,569 (115) Share of Surplus of Joint Ventures and Associates 12 16 Loss on Disposal of a Joint Venture and an Associate - (2) Surplus / (Deficit) for the year 1,581 (101) Other Comprehensive Income 68 (12) Total Comprehensive Income 1,649 (113) Number of Places Number Existing 6,500 Planned 1,858 AN EXTRACT FROM THE UNIVERSITY’S ANNUAL ACCOUNTS 2016–17 Overview The financial year 2016–17 was the first year of the 2016–19 triennium. In the new triennium, University Grants Committee (UGC) continues to allocate funding for the additional year under the new academic structure at marginal rate. In the past year, the Group provided a strong foundation for the pursuit of the education mission to be Asia’s leading global university. The Group’s consolidated financial results recorded a surplus of $1,649 million, largely attributable to the positive return on investment resulting from an improved 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 Practice for the UGC-funded Institutions. Results for the Year The Group’s consolidated results for the year ended June 30, 2017 are summarised as follows: The consolidated income for the year 2016–17 was $10,830 million, an increase of $2,207 million as compared to last year. This was mainly due to improved investment return and higher asset values resulting from strong performance in the global equity markets. The consolidated expenditure increased 6% to $9,261 million (2015–16: $8,738 million), of which $6,545 million (2015–16: $6,309 million) was expended on the Group’s teaching / learning and research activities. Financial Outlook Stepping into 2017–18, funding pressure will continue to be a key challenge for the University. The University will actively attract donations and more efficiently allocate resources to achieve education excellence as well as to support its strategic development in the long term. The University will continue to invest in infrastructure and technology upgrades and provide an enabling platform to enhance teaching, learning and research experiences throughout the campus. This is a key factor in assuring the University’s competitiveness in the dynamic global academic environment. The University will also focus on its strategic objectives of the ‘3+1 Is’: internationalisation, innovation and interdisciplinarity, all converging on impact to accomplish academic excellence in all aspects of teaching, research and knowledge exchange. To support all these new initiatives and developments, the University shall remain prudent and yet creative in managing its resources. While focusing on strategic developments, the University shall maintain a healthy financial position in a changing global environment and strive for strong leadership in the global academic community, for today and for our long-term future. The University’s Annual Accounts can be found at http://www.feo.hku.hk/finance/. Any correspondence or feedback on this extract or the accounts should be addressed to e-mail: finance@fo.hku.hk. Note: Some percentages or figures in this section do not add up to 100% or total owing to rounding. HKU SPACE Gross Covered Floor Area (as of June 2017) 45,283 sq. m. 46 | 47