Financial Statements for the Year Ended 30 June 2006

Abstract

[evdate 2006-06-30] The Hong Kong University of Science and Technology Financial Statements For the year ended 30 June 2006 CONTENTS Treasurer's Report Auditors' Report Consolidated Income and Expenditure Statement 8 - 9 University Income and Expenditure Statement 10 - 11 Consolidated Balance Sheet 12 - 13 University Balance sheet Consolidated Statement of Changes in Fund Balances University Statement of Changes in Fund Balances 18 - 19 Consolidated Cash Flow Statement 20 - 62 Notes to the Financial Statements THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 TREASURER'S REPORT Operating Result for the Year The University has enjoyed a good start in the first year of the triennium 2005-08. For year 2005/06, a record- high surplus of $802.2 million was achieved ($181.4 million in 2004105). The high surplus was primarily due to the successful raising of donations of $456 million, above the ceiling of $455 million matchable by the University Grants Committee (UGC) under the Second Matching Grant Scheme. Consolidated Income Consolidated income for the year was $3,040.6 million ($2,381.7 million in 2004/05): $1,788.8 million (58.8%) from government subventions, $497.5 million (16.4%) from tuition and program fees, $1 19.6 million (3.9%) from interest and investment income, $436.3 million (14.4%) from donations, $137 million (4.5%) from auxiliary services, other income accounting for $61.4 million (2%). The Government launched the second Matching Grant Scheme in July 2005, under which, the University received matching grants for qualified donations. Besides extra income from the Matching Grant Scheme, investment 1 interest income also increased significantly to $119.6 million in 2005106 from $42.6 million in 2004105, due mainly to the continued interest rate hikes in 2005106 as well as the growth in surplus funds as a result of the matching grant scheme. Consolidated Expenditure Consolidated expenditure for the year was $2,241.9 million ($2,203.7 million in 2004105) with $1,653.2 million (73.7%) for Learning and Research activities, $122.8 million (5.5%) for Management and general expenditure, $343 million (15.3%) for Premises and related expenses, and $122.9 million (5.5%) for other items. The increase in expenditure was mainly due to a one-off lump sum voluntary redundancy payment to departing staff. UGC-funded Activities UGC grants accounted for $1,736.4 million or 97% of government subventions, including recurrent block grant of $1,189.2 million; earmarked grants for housing, research, capital works and rates and government rent refunds totalling $303.9 million; and extra matching grants of $243.3 million. The recurrent block grant together with tuition fees and other income totalled $1,553 million for the year, and related expenditure amounted to $1,505.3 million. The surplus of $47.7 million was transferred to the General and Development Reserve. As at 30 June 2006, the reserve balance stood at $920.9 million. Capital Projects The construction of the Enterprise Center is in progress. Building costs of $76 million were incurred during the year ($15 million in 2004105). The Center is scheduled for completion in 2006107. It will house activities related to applied R&D, technology transfer, executive and professional development programs. With increasing need for on-campus student accommodation due to internationalization, another construction project for a new hall with 350 student residence places is underway. The estimated construction cost of the new hall of some $83 million will be financed by internal cash flow generated from the student hostel operation. The new hall is targeted for occupation by 2008/09. Outlook The Institute for Advanced Study (IAS), one of the key initiatives of the University Strategic Plan 2020, was officiated in July with an inaugural lecture by world- renowned scientist, Prof. Stephen Hawking. The lecture has captured an unprecedented coverage of the local media generating interest and enthusiasm in the science universe across all cross-sections of the local society. With the Government and the UGC7s strong support, the IAS has successfully obtained startup and seed funding for both its capital construction and recurrent operations. The IAS, together with other key areas of pursuit under the University Strategic Plan, will continue to be the focal point of the University's development in the years to come. University's resources will continue to be allocated to these initiatives. In this regard, the University will continue to strengthen its fundraising capabilities. SIGNED Tim T.L. LUI Treasurer of the University 10 November 2006

AUDITORS' REPORT Deloitte. To : The Council of The Hong Kong University of Science and Technology We have audited the financial statements of The Hong Kong University of Science and Technology (the 'University') and its subsidiaries (collectively referred to as the 'Group') from pages 6 to 62 which have been prepared in accordance with accounting principles generally accepted in Hong Kong. Respective Responsibilities of the Council and Auditors The Council are responsible for the preparation of Financial statements which give a true and fair view. In preparing financial statements which give a true and fair view, it is fundamental that appropriate accounting policies are selected and applied consistently. It is our responsibility to form an independent opinion, based on our audit, on those financial statements and to report our opinion solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report Basis of Opinion We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Council in the preparation of the financial statements, and of whether the accounting policies are appropriate to the circumstances of the University and the Group, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatements. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. We believe that our audit provides a reasonable basis for our opinion. Opinion In our opinion, the financial statements give a true and fair view of the state of affairs of the University and of the Group as at 30 June 2006 and of the results of the University and of the Group and cash flows of the Group for the year then ended. SIGNED

Deloitte Touche Tohmatsu Certified Public Accountants HONG KONG 10 November 2006

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2006 Income Government Subventions Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Services Other Income Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Surplus from operation for the year

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2006 Share of Result of a Jointly Controlled Entity Share of Result of an Associate Surplus for the year before transfers Transfers to : Restricted Funds Other Funds 2006 Notes

UNIVERSITY INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2006 RA Income Government Subventions Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Services Other Income Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Notes Surplus for the year before transfers

UNIVERSITY INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2006 2006 2005 Notes $'OOO $'OOO Transfers to : Restricted Funds Other Funds

CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2006 Notes Non-Current Assets Property and Equipment Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Interest in an Associate Interest in a Joint Venture Current Assets Stocks Accounts Receivable and Prepayments Cash and Cash Equivalents Current Liabilities Accounts Payable and Accruals Provision of Staff Benefits Deferred Income Net Current Assets Total Assets Less Current Liabilities

CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30 JUNE 2006 Notes Non-Current Liabilities Provision of Staff Benefits NET ASSETS Deferred Capital Funds Restricted Funds Other Funds TOTAL FUNDS 2006 Approved by the Council on 10 November 2006

SIGNED Tim T.L. LUI Treasurer of the University SIGNED Paul C.W. CHU President

SIGNED Philip S.P. WONG Director of Finance

UNIVERSITY BALANCE SHEET AS AT 30 JUNE 2006

Non-Current Assets Property and Equipment Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Investment in an Associate Investments in Subsidiaries

Current Assets Stocks Accounts Receivable and Prepayments Cash and Cash Equivalents Current Liabilities Accounts Payable and Accruals Provision of Staff Benefits Deferred Income Net Current Assets Total Assets Less Current Liabilities Notes UNIVERSITY BALANCE SHEET (Cont'd) AS AT 30 JUNE 2006 2006 2005 Notes $'OOO $'OOO Non-Current Liabilities Provision of Staff Benefits NET ASSETS Deferred Capital Funds Restricted Funds Other Funds TOTAL FUNDS

CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES Deferred Capital Funds Restricted Funds Other Funds Total Funds $'OOO $'OOO $'OOO $'OOO Balance as at 1 July 2004 Surplus for the year Endowment Funds received Endowment Funds transferred to consolidated income and expenditure statement Unrealised gain on Available-for-Sale Financial Assets Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to consolidated income and expenditure statement Subventions and donations received and receivable during the year for Property and Equipment (160,658) Amount transferred to income and expenditure statement representing the depreciation charge on Properly and Equipment funded by subventions and donations Change in share of statutory reserves of an Associate Inter-fund transfer Balance as at 30 June 2005

CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) Deferred Capital Funds Restricted Funds Other Funds Total Funds Balance as at 30 June 2005 Surplus for the year Endowment Funds received RNi#WE&HBBB*S%ZB8J Unrealised gain on Available-for-Sale Financial Assets Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to consolidated income and expenditure statement Subventions and donations received and receivable during the year for Property and Equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations Change in share of statutory reserves of an Associate Change in exchange reserve Inter-fund transfer Balance as at 30 June 2006

UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES Balance as at 1 July 2004 Surplus for the year Endowment Funds received Endowment Funds transferred to income and expenditure statement Unrealised gain on Available-for-Sale Financial Asset Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure Deferred Capital Restricted Funds Funds $'OOO $'OOO 2,953,007 741,280 Subventions and donations received and receivable during the year for Property and Equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations Inter-fund transfer Balance as at 30 June 2005 Other Funds Total Funds $'OOO $'OOO 1,216,150 4,910,437

UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) Deferred Capital Funds Restricted Funds Other Funds Total Funds Balance as at 30 June 2005 Surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure Subventions and donations received and receivable during the year for Property and Equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations Inter-fund transfer Balance as at 30 June 2006

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2006 Operating Activities Net Surplus for the year Depreciation Bad debt written off (Gain) / loss on disposal of Property and Equipment Interest and Investment Income Amortisation of (discount) I premium on Held-to-Maturity Financial Assets Gain on disposal of a Subsidiary Share of results of an Associate / a Jointly Controlled Entity Transfer from Deferred Capital Fund Transfer from Endowment Fund Operating cash flow before movement in working capital (Increase) 1 decrease in Stocks Increase in Accounts Receivable and Prepayments Increase in Accounts Payable and Accruals (Decrease) 1 increase in Deferred Income Decrease in Provision of Staff Benefits Net Cash from Operating Activities

CONSOLIDATED CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2006 Investing Activities Payment for purchase of Property and Equipment Increase in Bank Deposits maturing after three months Purchase of Held-to-maturity Financial Assets Investment in a Jointly Controlled Entity Increase in Investments in Available-for-Sale Financial Assets Proceeds from redemption of Held-to-Maturity Financial Assets Proceeds from disposal of Property and Equipment Interest and investment income received Net Cash Used in Investing Activities Financing Activities Endowments received Subventions and donations received for purchase of Property and Equipment Net Cash from Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Year

Effect of Foreign Exchange Rate Changes Cash and Cash Equivalents at the End of the Year Analysis of Cash and Cash Equivalents at the End of the Year Cash and Cash Equivalents Less : Bank Deposits maturing after three months 2006 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2006 1. PRINCIPAL ACTIVITIES The principal activities of the University are offering programmes leading to the award of first degrees and postgraduate qualifications particularly in science, technology, engineering, management and business studies; and collaborating closely with government, business, industry as well as other higher education institutions to assist the economic and social development of Hong Kong. The principal activities and other particulars of the subsidiaries are set out in note 14. The registered address and principal place of operation is Clear Water Bay, Hong Kong. The financial statements are presented in Hong Kong dollars, which is the same as the functional currency of the University. 2. PRINCIPAL ACCOUNTING POLICIES The financial statements have been prepared on the historical cost basis except for available-for- sale financial assets which are measured at fair value. The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards ('HKFRSs') issued by the Hong Kong Institute of Certified Public Accountants ('HKICPA'). The principal accounting policies adopted are as follows: 2.1 Basis of Consolidation The consolidated financial statements incorporate the financial statements of the University and its subsidiaries controlled by the University made up to 30 June each year. Control is achieved where the University has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income and expenditure statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All significant transactions and balances between group entity are eliminated on consolidation. Investments in Subsidiaries Investments in subsidiaries are included in the University's balance sheet at cost less any identified impairment loss. Interest in an Associate An associate is an entity over which the Group is in a position to exercise significant influence, but not control, through participation in the financial and operating policy decisions of the investee. The results and assets and liabilities of an associate are incorporated in the consolidated financial statements using the equity method of accounting. Interest in an associate is carried in the consolidated balance sheet at cost as adjusted by post-acquisition changes in the Group's share of the profit and loss and of changes in equity of the associate, less any impairment loss. Where a group entity transacts with an associate of the Group, unrealised profits or losses are eliminated to the extent of the Group's interest in the relevant associate, except to the extent that unrealised losses provide evidence of an impairment of the asset transferred. Interest in a Joint Venture A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control, that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.

A joint venture arrangement that involves the establishment of a separate entity in which each venturer has an interest are referred to as a jointly controlled entity. The results and assets and liabilities of a jointly controlled entity are incorporated in the consolidated financial statements using the equity method of accounting. Interest in a jointly controlled entity is carried in the consolidated balance sheet at cost as adjusted by post-acquisition changes in the Group's share of the profit or loss and of changes in equity of the jointly controlled entity, less any impairment loss. Where the Group transacts with its jointly controlled entity, unrealised profits or losses are eliminated to the extent of the Group's interest in the jointly controlled entity, except to the extent that unrealised losses provide evidence of an impairment of the asset transferred. 2.5 Property and Equipment Property and equipment, other than construction in progress, are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided to write off the cost of property and equipment, other than construction in progress, over their estimated useful lives and after taking into account their estimated residual value, using the straight-line method. Construction in progress is stated at cost less any identified impairment loss and is not depreciated until completion of construction. Cost of completed construction works is transferred to appropriate categories of property, plant and equipment. An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising from disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the income and expenditure statement. Expenses on property and equipment funded by government subventions and specific donations are capitalised and credited to Deferred Capital Funds. Each year, an amount equal to the depreciation charges for the respective property and equipment is transferred from Deferred Capital Funds and credited to the income and expenditure statement. 2.6 Financial Instruments Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. 2.6 (a) Accounts receivable and amounts due from subsidiaries Accounts receivable and amounts due from subsidiaries are measured at initial recognition at fair value, and are subsequently measured at mortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in income and expenditure statement when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. 2.6 (b) Investments Investments are recognised and derecognised on a trade date basis where the purchase or sale of an investment is under a contract which terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, plus directly attributable transaction costs.

At subsequent reporting dates, debt securities that the Group has the expressed intention and ability to hold to maturity (held-to-maturity debt securities) are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect irrecoverable amounts. An impairment loss is recognised in income and expenditure statement when there is objective evidence that the asset is impaired, and is measured as the difference between the investment's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Impairment losses are reversed in subsequent periods when an increase in the investment's recoverable amount can be related objectively to an event occurring after the recognition of the impairment loss, subject to the restriction that the carrying amount of the investment at the date the impairment is reversed shall not exceed what the amortised cost would have been had the impairment not been recognised. Investments other than held-to-maturity debt securities are classified as either investments held for trading or as available-for-sale, and are measured at subsequent reporting dates at fair value. Where securities are held for trading purposes, gains and losses arising from changes in fair value are included in income and expenditure statement for the period. For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in fund balances, until the security is disposed of or is determined to be impaired, at which time the cumulative gains or losses previously recognised in fund balances are included in the income and expenditure statement for the period. 2.6 (d) For available-for-sale equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured and derivatives that are linked to and must be settled by delivery such unquoted equity instruments, they are measured at cost less any identified impairment losses at each balance sheet date subsequent to initial recognition. An impairment loss is recognised in profit or loss when there is objective evidence that the asset is impaired. The amount of the impairment loss is measured as the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses will not reverse in subsequent periods. Impairment losses recognised in income and expenditure statement for equity investments classified as available-for-sale are not subsequently reversed through income and expenditure statement. Impairment losses recognised in income and expenditure statement for debt instruments classified as available-for- sale are subsequently reversed if an increase in the fair value of the instrument can be objectively related to an event occurring after the recognition of the impairment loss. Accounts payable and accruals, deferred income and amounts due to subsidiaries Accounts payable and accruals, deferred income and amounts due to subsidiaries are initially measured at fair value, and are subsequently measured at mortised cost, using the effective interest rate method. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits.

2.6 (e) Provisions Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. Provisions are measured at the management's best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material. Stocks Stocks held for resale in respect of self-financing operations are valued at the lower of cost and net realisable value. Cost is calculated using the weighted average method. Impairment At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. Income Government subventions and designated donations are recognised as income over the periods necessary to match them with the related expenditure. Any Recurrent Block Grant in excess of related expenditure is recognised as income and transferred to the General and Development Reserve Fund in accordance with the prevailing University Grant Committee's guidelines. Subventions aqd donations for depreciable property and equipment are recognised as Deferred Capital Funds and are mortised over the estimated useful lives of the related assets in accordance with the policies as stated in notes 2.5 and 10. General donations are recognised as income when the amounts have been received or are receivable from the donors. Tuition fees and rental income are recognised When services are provided Interest income from a financial asset is accrued on a time basis, by reference to the principal outstanding and at the interest rate applicable, which is the rate that exactly discount the estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount. Endowments are credited to restricted funds in the year in which they are received. Income generated from endowments are recognised in the income and expenditure statement. Endowments are transferred from restricted funds and credited to the income and expenditure statement when the condition for maintenance of the principal amounts has expired or been waived by donors. 2.10 Operating Leases 2-10 The Group as lessor Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. 2.10 The Group as lessee Rentals payable under operating leases are charged to income and expenditure statement on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.

Retirement Benefits Costs Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. Foreign Currencies The individual financial statements of each member of the Group are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in Hong Kong Dollars, which is the functional currency of the University and the presentation currency for the consolidated financial statements. In preparing the financial statements of the individual entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the income and expenditure statement for the period in which they arise. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in the income and expenditure statement for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in fund balances. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in fund balances. 2.13 NEW AND REVISED HKFRSs ISSUED BUT ARE NOT YET EFFECTIVE

The Group has not early applied the following new standards, amendments and interpretations ('INT(s)') that have been issued by the HKICPA, but are not yet effective as at 30 June 2006 (the '2006 New Standards'). The Group anticipates that the application of the 2006 New Standards will have no material impact on the financial statements of the Group: HKAS 1 (Amendment) Capital disclosures' HKAS 19 (Amendment) Actuarial gains and losses, company plans and disclosures2 HKAS 21 (Amendment) Net investment in a foreign operation2 HKAS 39 (Amendment) Cash Flow hedge accounting of forecast intra company transactions2 HKAS 39 (Amendment) The fair value option2 HKAS 39 & HKFRS 4 (Amendments) Financial guarantee contracts2 HKFRS 6 Exploration for and evaluation of mineral resources2 HKFRS 7 Financial instruments: HK(IFRIC) - INT4 2 Determining whether an arrangement contains a lease HK(IFRIC) - INT 5 Rights to interests arising from decommissioning, restoration and environmental rehabilitation funds2 HK(IFRIC) - INT 6 Liabilities arising from participating in a specific market, waste electrical and electronic equipment3 HK(IFRIC) - INT7 Applying the restatement approach under HKAS 29 Financial Reporting in Hyperinflationary Economics HK(IFRIC) - INT 8 Scope of HKFRS 25

HK(IFRIC) - INT 9 Reassessment of embedded derivative2 R2007 Effective for accounting period beginning on or after January 1,2007. Effective for accounting period beginning on or after January 1,2006. Effective for accounting period beginning on or after December 1,2005. Effective for accounting period beginning on or after March 1,2006. Effective for accounting period beginning on or after May 1,2006 Effective for accounting period beginning on or after June 1,2006.

GOVERNMENT SUBVENTIONS Consolidated Subventions from University Grants Committee (UGC) Recurrent Block Grant / Supplementary Grants Earmarked Grants Research Housing Benefits Others Rates and Government Rent Refunds Capital Grants and Alterations, Additions & Improvements Block Allocation Matching Grants Grants from Government Agencies GOVERNMENT SUBVENTIONS (Cont'd) University Subventions from University Grants Committee (UGC) Recurrent Block Grant / Supplementary Grants Earmarked Grants Research Housing Benefits Others Rates and Government Rent Refunds Capital Grants and Alterations, Additions & Improvements Block Allocation Matching Grants Grants from Government Agencies

TUITION, PROGRAMMES AND OTHER FEES 2006 2005 $'OOO $'OOO Consolidated UGC-Funded Programmes Tuition Fees Application and Other Fees Non UGC-Funded Programmes UGC-Funded Programmes Tuition Fees Application and Other Fees Non UGC-Funded Programmes University DONATIONS AND BENEFACTIONS Consolidated and University Capital Projects Scholarships and Bursaries

Learning and Research Activities (Note) Note : Biotechnology Research Corporation Limited (BRC) The amount included a donation of $943,695 (2005: $1,431,505) from the Hong Kong Jockey Club Charities Trust. Apart from this, the Hong Kong Jockey Club Charities Trust donated $14,637,395 for construction of the University's Enterprise Center, which amount was recognised in deferred income; and a total sum of $20,026,032 through the University to the Biotechnology Research Corporation Limited (BRC) for conduction of biotechnology research activities, which amount was not recognised as income of the University. 6. AUXILIARY SERVICES Consolidated Residence Halls Catering Services Souvenir Shop Rental Income Rental Contribution from Staff Others Residence Halls Catering Services Souvenir Shop Rental Income Rental Contribution from Staff Others University

OTHER INCOME Consolidated Contract Research Others Gain on Disposal of a Subsidiary Contract Research Others University

EXPENDITURE Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Subtotal Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Subtotal Total Expenditure for Year 2006 Total Expenditure for Year 2005 Salaries and Benefits Operating Expenses Depreciation Consolidated 2006 Total Included in Salaries and Benefits was a total sum of $118.8 million (2005: $119.8 million) representing the Group's contributions towards retirement benefits schemes for the respective accounting period. 8.1 REMUNERATION OF HIGHER PAID STAFF The remunerations of higher paid staff were within the following bands Number of Employees 2006 2005 Consolidated and University 8.2 ANALYSIS OF OPERATING EXPENSES 2006 2005 $'OOO $'OOO Re Consolidated Learning and Research General Office I Teaching and Research Expenses I Equipment Library Books and Periodicals Postgraduate Studentships Management and General Auditors' Remuneration Financial Charges General Insurance General Office Expenses / Equipment Legal Fee

8. EXPENDITURE (Cont 'd) Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Subtotal Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Subtotal Total Expenditure for Year 2006 2005 Total Expenditure for Year 2005 2006 2005 Salaries and Benefits Operating Expenses Depreciation Total University 8.2 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2006 2005 $'OOO S'OOO Be Consolidated Premises and Related Expenses General Office Expenses / Equipment

Property Insurance Rates and Government Rent Repair and Maintenance / Minor Works Utilities, Cleaning and Security Services Expenses Student and General Education Services General Office Expenses / Equipment Medical and Dental Care for Students Residence Halls Scholarships and Bursary Student Activities Other Activities 8.2 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2006 2005 $'OOO $'OOO University Learning and Research General Office / Teaching and Research Expenses / Equipment Library Books and Periodicals Postgraduate Studentships Management and General Auditors' Remuneration Financial Charges General Insurance General Office Expenses I Equipment Legal Fee

8.2 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2006 2005 $'OOO S'OOO University Premises and Related Expenses General Office Expenses / Equipment Property Insurance Rates and Government Rent Repair and Maintenance / Minor Works Utilities, Cleaning and Security Services Expenses Student and General Education Services General Office Expenses / Equipment Medical and Dental Care for Students Residence Halls Scholarships and Bursary Student Activities Other Activities

TRANSFERS TO RESTRICTED / OTHER FUNDS Income and expenditure for the year are categorised between specific use and general use. Any surplus from the former category is transferred to Restricted Funds and the latter to Other Funds. Restricted Funds Other Funds Restricted Funds Other Funds $'OOO S'OOO $'OOO $'OOO Consolidated Income Government Subventions Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Services Other Income Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Surplus from operation for the year Share of Results of an Associate / a Jointly Controlled Entity Surplus for the year available for transfers

TRANSFERS TO RESTRICTED / OTHER FUNDS (Cont'd) Restricted Funds Other Funds Restricted Funds Other Funds S'OOO S'OOO S'OOO S'OOO University Income Government Subventions Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Services Other Income Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Surplus for the year available for transfers

PROPERTY AND EQUIPMENT Construction in progress Fixtures and equipment Buildings Total Consolidated COST Balance as at 1 July 2004 Additions Transfers Disposals / Written Off Balance as at 30 June 2005 Additions Exchange translation difference Disposals / Written Off Balance as at 30 June 2006 DEPRECIATION Balance as at 1 July 2004 Provided for the year Disposals / Written Off Balance as at 30 June 2005 Provided for the year Exchange translation difference Disposals / Written Off Balance as at 30 June 2006 NET BOOK VALUES Balance as at 30 June 2006 - Balance as at 30 June 2005 The above items of property and equipment are depreciated on straight-line basis at the following rates per annum: Buildings 2% per annum Fixtures and equipment 20% - 25% per annum

PROPERTY AND EQUIPMENT (Cont'd) Construction in progress Fixtures and equipment Buildings Total Total University COST Balance as at 1 July 2004 Additions Transfers Disposals / Written Off Balance as at 30 June 2005 Additions Disposals /Written Off Balance as at 30 June 2006 DEPRECIATION Balance as at 1 July 2004 Provided for the year Disposals / Written Off 1,032,490 0 1,566,673 2,599,163 Balance as at 30 June 2005 Provided for the year Disposals /Written Off Balance as at 30 June 2006 NET BOOK VALUES Balance as at 30 June 2006 Balance as at 30 June 2005

The University campus located in Sai Kung of approximately 60 hectares was granted by the Government at a nominal rent for 58 years through 30 June 2047. The above items of property and equipment are depreciated on straight-line basis at the following rates per annum: Buildings

Fixtures and equipment 2% per annum 20% - 25 % 20% - 25% per annum

Financial Assets Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Unlisted, at fair value Unlisted, at cost (Note) Listed, at market value Note : 2006 2005 Consolidated The unlisted available-for-sale financial asset at cost represents investment in an unlisted equity security issued by a private entity. It is measured at cost less impairment at each balance sheet date. The range of reasonable fair value of the asset is quite wide. Management of the Group is of the opinion that its fair value cannot be measured reliably. University Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Unlisted, at fair value Listed, at market value The University holds, prima facie, a partial interest in Hong Kong RBJ) Centre for Logistics and Supply Chain Management Enabling Technologies Limited ('LSCM”), a company incorporated in Hong Kong and limited by guarantee and not having a share capital. However, pursuant to the Memorandum and Articles of Association of LSCM, the University has no control or significant influence over the operating and financial policies of LSCM and has no entitlement to share in its profits and assets. Therefore, LSCM is classified as an unlisted available-for-sale financial asset. The University holds, prima facie, 100% interest in Nano and Advanced Materials Institute Limited ('NAMI”), a company incorporated in Hong Kong and limited by guarantee and not having a share capital. However, pursuant to the Memorandum and Articles of Association of NAMI, the University has no control over the operating and financial policies of NAMI and has no entitlement to share in its profits and assets. Therefore, NAMI is classified as an unlisted available-for-sale financial asset.

INTEREST IN AN ASSOCIATE Share of net assets Unlisted shares, at cost 2006 2005 5'000 5'000 Consolidated University Proportion of Nominal Value of Issued Capital Directly Held by the University Associate Form of Business Structure Place of Incorporation / Principal Place of Operation Class of Shares Held Principal Activity PKU-HKUST Shenzhen-Hong Kong Institution Limited Liability Company People's Republic of China Capital contribution To foster the development of high technologies in Shenzhen and to cultivate high-quality human resources The summarised financial information in respect of an associate is set out below: Total assets Total liabilities Net assets Group's share of net assets of the associate Turnover Profit for the year Group's share of results of the associate for the year INTEREST IN A JOINT VENTURE Consolidated Jointly controlled entity Share of net assets Form of Business Structure Name of Entity Zhejiang Advanced Manufacturing Institute of HKUST Co. Ltd. ('ZAMI') Sino-foreign joint venture Proportion of Manufacturing research Class of Shares Held Country of Incorporation and Operation Percentage of Voting Power of the Board Capital contribution People's Republic of China Nature of Business Promotion of Nominal Value of Issued Capital Held by the Group 80 The Group holds 51% of the share capital of ZAMI and has appointed 3 out of 5 directors in the Board representing 60% of voting power of the Board. However, under the memorandum and articles and shareholders' agreement of ZAMI, all significant events including financial and operating policies must be mutually agreed by the Group and the other significant shareholder. Therefore, ZAMI is classified as a jointly controlled entity of the Group. 14. INVESTMENTS IN SUBSIDIARIES University Unlisted shares, at cost Place / Country of Incorporation Subsidiaries HKUST College of Lifelong Learning Hong Kong Limited HKUST Properties Limited Hong Kong Hong Kong University of Science and Hong Kong Technology R and D Corporation Limited ('RDC') HKUST R and D Corporation (Guangzhou) Limited Proportion of Nominal Value of Issued Capital Held by the University Principal Activity Direct Indirect Conducting educational courses and programs Dormant To engage in developing scientific and technical innovations produced by university research projects into commercial ventures People's Republic of China Provision of research and development services 15. STOCKS Stocks held by Souvenir Shop Consolidated and University The amount of stocks recognised as an expense during the year was HK$329,634 (2005: HK$355,032). 16 ACCOUNTS RECEIVABLE AND PREPAYMENTS Prepayments and Deposits Accounts Receivable Prepayments and Deposits Accounts Receivable 2006 2005 $'OOO $'OOO

Consolidated University Accounts receivable are repayable on demand. The Council considers that the carrying amount of accounts receivable and prepayments approximate their fair values. 17 CASH AND CASH EQUIVALENTS 2006 2005 $ ' 000 $'OOO Consolidated Bank Deposits Maturing within three months Maturing after three months Other Bank and Cash Balances Bank Deposits Maturing within three months Maturing after three months University Other Bank and Cash Balances Other bank and cash balances included cheques issued but not yet presented for payment. There was no physical overdraft at 30 June 2006 (2005: nil). 18. ACCOUNTS PAYABLE AND ACCRUALS Consolidated Other Accounts Payable and Accruals Amount due to UGC Other Accounts Payable and Accruals Amount due to UGC University The Council considers that the carrying amount of accounts payable and accruals approximate their fair values.

PROVISION OF STAFF BENEFITS 2006 2005 $'OOO $'OOO Consolidated Gratuities Contractual Passages Leave Pay and Others Payable: Within 1 year After 1 year Gratuities Contractual Passages Leave Pay and Others Payable: Within 1 year After 1 year University Balance as at 1 July 2004 Subventions received Credited to income and expenditure statement

Deferred Income Transferred to Deferred Capital Funds Balance as at 30 June 2005 Subventions received Credited to income and expenditure statement Transferred to Deferred Capital Funds Balance as at 30 June 2006 Grants from Government Agencies UGC Subventions Donations Total $'OOO $ ' 000 $ ' 000 $ ' 000 Consolidated and University

DEFERRED CAPITAL FUNDS Consolidated and University Balance as at 1 July Buildings Fixtures and equipment Subventions and donations received and receivable during the year for Property and Equipment Buildings Fixtures and equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations (Notes) Buildings Fixtures and equipment Balance as at 30 June Buildings Fixtures and equipment Deferred Capital Funds represent subventions and donations used specifically for the acquisition of property and equipment. The amounts are recognised as income to match the depreciation charge on the properly and equipment acquired. Out of $139.537 million (2005: $160.658 million) transferred to income and expenditure statement, $94.241 million (2005: $113.117 million) has been included in Government Subventions and $45.296 million (2005: $47.541 million) in Donations and Benefactions.

RESTRICTED FUNDS Balance as at 1 July 2004 Surplus for the year Endowment Funds received Endowment Funds transferred to income and expenditure statement Unrealised gain on Available-for- sale financial assets Recognition of unrealised gain on disposal of Available-for-sale financial assets transferred to income and expenditure statement Inter-fund transfer Balance as at 30 June 2005 Surplus for the year Endowment Funds received Unrealised gain on Available-for- sale financial assets Recognition of unrealised gain on disposal of Available-for-sale financial assets transferred to income and expenditure statement Inter-fund transfer Balance as at 30 June 2006 Investment Revaluation Reserve Other Restricted Funds Endowment Funds Total $ ' 000 $'OOO $'OOO $'OOO Consolidated and University 106,903 (3,217) 637,594 741,280 23.

OTHER FUNDS Balance as at 1 July 2004 Surplus for the year Change in share of statutory reserves of an Inter-fund transfer Balance as at 30 June 2005 Surplus for the year Change in share of statutory reserves of an Associate Change in exchange reserve Inter-fund transfer Balance as at 30 June 2006 Balance as at 1 July 2004 Surplus for the year Inter-fund transfer Balance as at 30 June 2005 Surplus for the year Inter-fund transfer Balance as at 30 June 2006 General & Development Reserve Fund Other General Funds Total Consolidated University

24. MATCHING GRANTS AND RELATED DONATIONS The University Grants Committee (UGC) has arranged Matching Grant Schemes under which qualified donations raised by institutions are matched by UGC grants. The amounts of grants and donations raised and expenses incurred under the Schemes have been included in the income and expenditure statement and unspent balances of grants and donations have been retained in the respective funds. In compliance with UGC7s requirement for separate disclosure of the matching grants and related donations, details of income and expenditure are extracted and set out below: UCG Matching Grant Matched Donations UGC Matching Grant Matched Donations Consolidated Balance as at 1 July An Income Grants / Donations Investment / Interest Income Expenditure Instruction and Research Scholarship / Bursary Management and General Balance as at 30 June 25. RELATED PARTY TRANSACTIONS All transactions including procurement of goods and services as well as donations involving members of the University Council or key management personnel or organisations in which they may have an interest are conducted during the normal course of operation in accordance with the University's regulations and procedures. For the purpose of these financial statements, transactions between the University and Government departments, agencies or Government entities, other than those transactions such as payment of rates and fees etc. that arise in the normal dealings between the Government and the University, are considered as related party transactions. Significant related party transactions during the year principally included Government Subventions as disclosed in notes 3 and 20. In addition, the University and the Group have entered into the following transactions with other related parties: 2006 2005 5'000 5'000 University Subsidiaries Transactions with subsidiaries : Rental paid to subsidiaries Management fee charged to subsidiaries Rental income / occupancy fee charged to subsidiarie: Project overhead charged to subsidiaries Tuition fee received from subsidiarie: Other expenses recharged to subsidiaries Amount due from subsidiaries (iii) Amount due to subsidiaries (c) Key management personnel compensation Salaries and other short-term employee benefits Post employment benefits Amount due from / to subsidiaries are unsecured, non-interest bearing and are repayable on demand. 01) An associate Dividend received from an associate Transactions with an associate Rental / other fee paid to an associate Consolidated and University 26. COMMITMENTS Capital Commitments Outstanding capital commitment not provided for in the financial statements were as follows: Contracted for Authorised but not contracted for Contracted for Authorised but not contracted for 2006 2005 $'OOO S'OOO Consolidated 82,909 167,146 99,254 168,367 - kb University 2006 2005 S'OOO $'OOO Consolidated As at 30 June, the Group had future aggregate minimum lease payments under non-cancellable operating leases as follows: In the first year In the second to fifth years inclusive After the fifth year Property rental income earned of the Group during the year University As at 30 June, the University had future aggregate minimum lease payments under non-cancellable operating leases as follows: In the first year In the second to fifth years inclusive TAXATION No taxation is provided as the University is exempt from taxation by virtue of Section 88 of the Inland Revenue Ordinance. 28. FINANCIAL RISK MANAGEMENT The Group's principal financial assets are cash and cash equivalents, accounts receivable, prepayments, held-to- financial assets and investments, which represent In the Group's maximum exposure to credit risk in relation to financial assets.

The Group's credit risk is primarily attributable to its accounts receivable. The amounts represented in the consolidated balance sheet are net of allowances for doubtful receivables, estimated by the Group's management based on past experience and their assessment of the current economy.

The credit risk on cash and cash equivalents is limited because the counterparties are banks with high credit-ratings assigned by international credit-ratings agencies. All held- to-maturity financial assets are of investment grade and investments are managed by experienced fund managers who are selected and monitored by the Finance Committee.

The Group has no significant concentration of credit risk, with exposure spread over a large number of counterparties. Interest rate risk The Group has exposure to interest rate risk through the impact of the rate changes on bank balances.

Price risk The Group's available-for-sale financial assets are measured at fair value at each balance sheet date. Therefore, the Group is exposed to price risk. In order to manage this exposure, the management has appointed professional parties to arrange a portfolio of investments with different risk profiles. Foreign currency risk The Group's foreign currency exposures arise mainly from the exchange rate movements of the Hong Kong dollars and Reminbi. The Group does not enter into any derivative foreign exchange contracts to hedge its foreign currency risk, as the Reminbi assets and operations of the Group is not significant. Liquidity risk The Group has sufficient funds to finance its ongoing working capital requirements. 29. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS In determining the carrying amounts of some assets and liabilities, the Group makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. These estimates involve assumptions about such items as risk adjustment to cash flows or discount rates used, future changes in salaries and future changes in prices affecting other costs. The Group's estimates and assumptions are based on historical experience and expectations of future events and are reviewed periodically. In addition to assumptions and estimations of future events, judgments are also made during the process of applying the Group's accounting policies. Held-to-maturity financial assets Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity financial assets if the Group has the intention and ability to hold them until maturity. In evaluating whether the requirements to classify a financial asset as held-to-maturity are met, management make significant judgements. Failure in correctly assessing the Group's intention and ability to hold specific investments until maturity may result in reclassification of the whole portfolio as available-for-sale financial assets. Allowances for bad and doubtful debts The provision policy for bad and doubtful debts of the Group is based on the evaluation of collectibility and aging analysis of accounts and on management's judgement. A considerable amount of judgment is required in assessing the ultimate realisation of these receivables, including the current creditworthiness and the past collection history of each customer. If the financial conditions of customers of the Group were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

香港科技大學 財務報表 截至2006年6月30日止年度 目錄 司庫報告 核數師報告 綜合收支報表 大學收支報表 綜合資產負債表 大學資產負債表 綜合基金變動表 大學基金變動表 綜合現金流動表 財務報表附註

2 香港科技大學 截至2006年6月30日止年度 財務報表

3 司庫報告 全年營浬情況 大學於2005－08三年撥款期有一個很好的開始， 在三年撥款期的第一年，即2005／06年度，錄得 盈餘802，200，000元，為歷史新高（2004／05年度為 181，400，000元）。顯著增長主要來自教資會第二 度配對補助金計劃下成功籌集的456，000，000元捐 款高於上限之455，000，000元。 綜合收入 本年度綜合收入為3，040，600，000元（2004／05年度 為2，381，700，000元），其中，l，788；800，000元 （58．8％）為政府補助，497，500，000元（16．4％）為學 費及課程收費，119，600，000元（3．90／0）為利息及投 資收入，436，300，000元（14．40／0）為捐款， 137，000，000元（．5％）為輔助服務收入及61；400，000 元（％）其他項目收入。 政府於2005年7月推出第M度配對補助金計劃， 在此計劃下，大學為合規定捐款獲得配對補助撥 款。除了來自配對補助金的額外收入外，去年因 息率持續調升及由於配對補助金計劃導致現金盈 餘的增長亦令投資回報錄得大幅增加。 綜合開支 本年度綜合開支為2，241，900，000元（2004／05年度 為2，203，700，000元），其中，l，653，200，000元 仍．7％）為學術及研究活動，122，800，000元（5．50／0） 為管理及一般事務，343，000，000元（15．30to為校 舍及有關費用，122，900，000元（5．50／0）為其他＄ 目。開支的增幅主要為支付參加自願離職計劃員

4 教資會資助活動 本年度教資會撥款為1，736，400，000元，佔政府補 助的97％，包括整筆經常撥款1，189，200，000元， 為房屋、研究、建設工程、過環差的及地租而設 的指定撥款共303，900，000元，額外配對補助撥款 為243，300，000元。 整筆經常撥款與來自學費及其他收入總額為 1，553，000，000元，而教資會資助經常開支為 1，505，300，000元，47，700，000元盈餘已轉撥至一 般及發展儲備。於2006年6月30日，儲備餘額為 920，900，000元。 建設項目 大學現正興建一所創新科技中心。本年度所用建 築費用共76，000，000元（200405年度為 15，000，000元）。該中心計劃於2006／07年度完工 ，並用作應用研究及開發，技術轉移，行政及專 業發展項目等活動。 由於大學發展國際交流的活動，學園宿位的需求 持續上升，大學琨正著手興建一座有350個學生 宿位的新宿舍。預計新宿舍建築費用約為 83，000，000元，由管理學生宿舍所得之內部資金 來支付。新宿舍預計於2008／09年啟用。

5 展望 今年7月，大學2020策略計劃的重點項目之一的 科大高等研究院由輩聲國際的科學家霍金教授的 首場講座拉開序幕。霍金教授的講座不僅受到本 地媒體空前廣泛的報導，更引發了社會各階層對 宇宙的興趣及熱忱。在政府及教資會的鼎力支持 下，科大高等研究院已成功籌集了初期所需之基 建及營運資金。科大高等研究院及大學策略計劃 中的其他項目將繼續成為大學未來發展的重要目 標。大學將進一步強化其籌資能力及繼續把資源 投放於該等項目。

大學司庫 雷添良 2006年11月 10日

6 核數師報告書 德勤 致：香港科技大學校董會 本核數師行已完成審核香港科技大學＊’大學”＊及 其附屬公司師稱”集團”1刊於第6頁至第62頁的 財務報表，該等財務報表乃按照香港公認會計 原則縝製的財務報表。 校董會及樣數師的個別責任 貴校董會須負責編製真實與公平的財務報表。 在縝製該等財務報表時，貴校董會必須貫徹 採用合適的會計政策。 本行之責任是根據本行審核工作之結果，對該 等財務報表發表獨立意見，並僅向 貴校董會 報告本行之意見，及不作其他用途。本行並不 就本報告之內容向任何其他人士負上責任或承 擔法律責任。 意見的基礎 本行是按照香港會計師公會頒佈的核數準則進 行審核工作。審核範圍包括以抽查方式查核與 財務報表所載數額及披露事項有關的憑證，亦 包括評估 貴校董會於縝製該等財務報表時所 作的重大估計和判斷，所釐定的會計政策是否 適合大學及集團的具體情況，及有否貫徹應用 並足夠地披露該等會計政策。

7 本行在策劃和進行審核工作時，均以取得一切 本行認為必需的資料及解釋為目標，使本行能 獲得充份的憑證，就該等財務報表是否存有重 要錯誤陳述，作出合理的確定。在表達意見時 ，本行亦已衡量該等財務報表所載的資料在整 體上是否足夠。本行相信，本行的審核工作已 為下列意見建立了合理的基礎。 意見 本行認為上述的財務報表真實與公平地反映大 學及集團於2006年6月30日的財務狀況以及大學 及集團截至該日止年度的收支結算和集團之現 金流動。

德勤‧關黃陳方會計師行 香港執業會計師 2006年11月10日

8 綜合收支報表 截至2006年6月30 B止年度 附就 收入 政府補助 學費、課程及其他收費 利息及投資收入 外界捐款 輔助服務 其他收入 開支 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 校務支援 管理及一殷事務 校舍及有關費用 學生及海識教育服務 其他活動 本年度營運所得盈餘

9 綜合收支報表（續） 截至2006年6月30日止年度 附詮 所佔共同控制個體的經營業績 所佔聯營公司的經營業績 本年度轉租前盈餘 轉租至 限定基金 其他基金

10 大學收支報表 截至2006年6月30日止年度 附設 收入 政府補助 學費、課程及其他收費 利息及投資收入 外界捐款 輔助服務 其他收入 開支 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 校務支援 管理及一般事務 校舍及有關費用 學生及通識教育服務 其他活動

11 大學收支報表（續） 截至2006年6月30 B止年度 轉撥至： 限定基金 其他基金 本年度轉震前盈餘

12 綜合資產負債表 2006年6月30日 非流動資產 物業及設備 持至到期日財務資產 可供出售財務資產 於聯營公司權益 於合資企業權益 流動資產 存貨 應收賬款及預付款頂 現金及現金等 流動負債 應付賬款及應計費用 教職員福利撥備 遞延收益 流動資產淨值 資產總值減流動負債

13 綜合資產負債表（續） 2006年6月30日 非流動負債 教職員福利撥備 資產淨值 遞延設備基金 限定基金 其他基金 基金總和 校董會於2006年11月 10日核准本財務報表 雷添良 大學司庫 朱經武 校長 黃世邦 財務處處長

14 大學資產負債表 2006年6月30日 非流動資產 物業及設備 持至到期日財務資產 可供出售財務資產 投資於聯營公司 投資於附屬公司 流動資產 存貨 應收賬款及預付款項 現金及現金等值 流動負債 應付賬款及應計費用 教職員福利撥備 遞延收益 流動資產淨值 資產總值減流動負債

15 大學資產負債表(續) 2006年6月30日 非流動負債 教職員福利撥備 資產淨疸 遞延設備基金 限定基金 其他基金 基金總和 16 綜合基金變動表 遞延設備基金 限定基金 其他基金 基金總和 2004年7月1日之結餘 本年度盈餘 留本基金收入 留本基金轉撥至綜合收支報表 於可供出售財務資產未實現之盈利 可供出售財務資產之未實現盈利於出售時被確認及轉撥至綜合收 支報表 於年內已收及應收的補助及捐款用作購買物業及設備 為以補助及捐款購買的物業及設備所需折舊之款頂而轉眼至收支報表 於聯營公司所佔法定儲備之變動 基金轉撥 2005年6月30日之結餘 17 綜合基金變動表（續) 遞延設備基金 限定基金 其他基金 基金總和 2005年6月30日之結餘 本年度盈餘 留本基金收入 從可供出售財務資產未實現之盈利 可供出售財務資產之未實現盈利於出售時被確認及轉撥至綜合收 支報表 於年內已收及應收的補助及捐款用作購買物業及設備 為以補助及捐款購署的物業及設備所需折舊之款項而轉賬至收支 報表 從聯營公司所佔法定儲備之變動 匯兌儲備之變動 基金轉撥 2006年6月30日之結餘

18 大學基金變動表 遞延設備基金 限定基金 其他基金 基金總和 2004年7月1日之結餘 本年度盈餘 留本基金收入 留本基金轉用至收支報表 於可供出售財務資產未實現之盈利 可供出售財務資產之末實現盈利於出售時被確認及轉撥至收支報表 於年內已收及應收的補助及捐款用作購貿物業及設備 為以補助及捐款購置的物業及設備所需折舊之款項而轉賬至收支 報表項 基金轉撥 2005年6月30日之結餘

19 大學基金變動表(續) 遞延設備基金 限定基金 其他基金 基金總和 2005年6月30日之結餘 本年度盈餘 留本基金收入 於可供出售財務資產未實現之盈利 可供出售財務資產之末實現盈利於出售時被確認及轉租至收支報表 於年內已收及應收的補助及捐款用作購置物業及設備 為以補助及捐款購置的物業及設備所需折舊之款頂而轉賬至收支 報表項 基金轉撥 2006年6月 30日之結餘

20 綜合現金流動表 截至2006年6月30日止年度 營運活動 本年度淨盈餘 折舊 壞帳沖銷 出售物業及設備之（溢利）／虧損 利息及投資收入 持至到期日財務資產溢價浙實）／攤銷 出售附屬公司所得溢利 所佔聯營公司／共同個體的經目業績 轉撥自遞延設備基金 轉撥自留本基金 存貨之(增加）/減少 應收賬款及預付款項之增加 應付賬款及應計費用之增加 遞延收益之減少）／增加 教職員福利撥備之減少 營運活動淨現金流入

21 綜合現金流動表（續） 截至2006年6月30日止年度 投資活動 購買物業及設備 從三個月後到期之銀行存款之增加 購買持至到期日財務資產 投資於共同個體 投資於可供出售財務資產之增加 從持至到期日財務資產所得之回贖收入 出售物業及設備之收入 利息及投資收入 投資活動淨現金流出 融資活動 留本基金收入 用以購買物業及設備之補助及捐款收入 融資活動淨現金流出/流入 現金及等同現金之淨增加 年初之現金及等同現金 匯兌變動之影響 年終之現金及等同現金 分析年終之現金及等同現金 現金及等同現金 減：於三個月後到期之銀行存款

22 財務報表附註 2006年6月30日 主要活動 大學主要提供理學、科技、工程、管 理及商學等科目的學士學位及研究生 課程，並與政府、商業機構、工業界 及其它高等教育院校緊密合作，促進 香港經濟及社會的發展。大學的附屬 公司的主要活動及其他事項詳列於附 註14內。 大學之註冊地址及主要營運地點為香 港清水灣。 本財務報表以港元呈覽，港元亦為大 學之功能貨幣。 主要會計政策 本財務報表乃根據原始成本慣例而編 製，惟可供出售財務資產按公允債列 賬除外。本財務報表根據香港會計師 公會頒佈的香港財務報告準則編製。 主要會計政策如下。 綜合基準 綜合財務報表包括截至每年6月30日大 學及受大學控制之附屬公司的財務報 表。控制權為大學有權掌管該榣構的 財務及營種政策，而自其業務獲取利 益。

23 於年內所收購或出售附屬公司的業績 ，分別由收購生效日期起或至出售生 效日期止計入綜合收支報表。 如有需要’會對附屬公司的財務報表 作出調整，使其會計政策與集團其他 成員公司所使用的會計政策保持一 致。 集團內部所有重大交易及結餘均在綜 合賬內柢銷。 投資於附屬公司 大學於附屬公司的投資按成本情扣除 任何可確認減債虧損後在資產負債表 中入帳。 於聯營公司權益 聯營公司指本集團可對其政策決定包 括參與財務及營浬策略決定作重要影 響，但不擁有其控制權的公司。 聯營公司之業績、資產及負債以權益 會計法列入綜合財務報表。聯營公司 權益按成本償列入綜合資產負債表， 其後會就收購後集團應佔聯營公司之 損益及權益變動扣除所屬投資減值虧 損入賬。 集團內的機構與聯營公司交易而產生 之未實現盈利或虧損均於集團權益內 柢銷，惟未實現虧損如證實為所轉移 資產之減值除外。 於合資企業權益 合資企業是一個合約上的安排，由集 團與其他參與者進行一項經濟活動， 該項活動由合資各方面共同控制，凡 政策決定涉及財務及營理上之策略， 必須合資各方決議一致通過。

24 共同控制實體是透過成立一個獨立機 構的合資企業安排，每個合資者均佔 有該獨立穠構之權益。共同控制實體 之業績、資產及負債以權益會計法列 入綜合財務報表。共同控制實體權益 按成本疽列入綜合資產負債表，其後 會就收曠後集團應佔共同控制實體之 損益及權益變動扣除所屬投資減債虧 損入賬。 集團與共同控制實體交易而產生之未 實現盈利或虧損地於集團權益內抵銷 ，惟未實現虧損如證實為所轉移資產 之減債除外。 物業及設備 除在建工程外，物業及設備按成本值 減累積折舊及累積減疸後入帳。 除在建工程外，計除剩餘估值後，物 業及設備按直線法計算折舊。 在建工程按成本值減去任何已確認之 減疸虧損入賬及至工程完竣後才攤銷 折舊。完竣工程成本將轉撥至適當之 物業及設備分類。 物業及設備項目會在出售或預期繼續 使用資產不會帶來未來經濟利益時終 止確認。資產出售或報廢而產生的收 益或虧損是由出售收入與資產帳面疸 的差額決定，並於收支報表確認入 賬。

25 由政府補助及指定捐款支付的物業及 設備列為資本項目，而相關的金額會 計入遞延設備基金內。等同有關物業 及設備之折舊費用的金額將每年由遞 延設備基金轉至收支報表中。 金融工具 當集團成為金融工具合約條文之參與 者時，雙關交易會於集團之資產負債 表內確認為財務資產及財務負債。財 務資產和財務負債在初次確認時會以 公允值進行計量。於購置或發行財務 資產和財務負債的直接交易費用在初 步確認時計入財務資產之公允償或於 財務負債的公允償中扣除（現何者適用 而定）。 應收賬款及附屬公司應付款項 應收賬款及附屬公司應付款項於初步 確認時按公允價值釐定，其後按攤銷 成本以實際利率法釐定。倘有客觀證 據顯示資產出現減值，則估計不可收 回金額之適當撥備將於收支報表中確 認。獲確認之減償撥備乃根據資產之 賬面金額與按於初步確認時計算之實 際利率折算之估計未來現金流量現疸 之間的差額而釐定。 投資 投資初步按公允值加上直接相關交易 成本依據交易日基準確認及刪除確認 ，其買賣按所屬市場定立之交收期限 定下合的條款。

26 其後報表日，集團計劃及有能力持 至到期日的債務証券（持至到期日的債 務証券），是按攤銷成本以實際利率法 釐定，減去減債虧損所代表之不可收 回疸。倘有客觀證據顯示資產出現減 疸虧損則於收支報表中確認。獲確認 之減疸乃根據投資之賬面金額與按於 初步確認時計算之實際利率折算之估 計未來現金流量現值之間的差額而釐 定。如其後出現已確認減值之投資可 收回升值金額，則將予以回撥，推回 撥後之賬面金額不能多於此減償虧損 之前已確認攤銷之成本值。 除持至到期日債務証券以外，持有之 投資將分類為可交易或可供出售，並 於日後報表日以公允值計算。持有作 交易用途之証券，其公允但變動引致 的收益或虧損，包括在當期之收支報 表中。持作可供出售之投資其因公允 疽變動引致的收益或虧損，於基金結 餘內確認，直至出售或決定為該証券 減償，其於基金結餘累計之收益或虧 損才列入當期之收支報表中。

27 該等並無活躍市場之交投報價，而其 公允值未能可靠計量的可供出售股權 投資及與其掛鉤而必須以該等沒有報 價之股權作為交收之衍生工具，於首 次確認後之各個結算日按成本疸減任 何已確認減值虧損計算。倘具備客觀 證明資產減債，則減值虧損於損益表 確認。減值虧損數額乃根據資產之賬 面金額與按類似財務資產之現行市場 回報率折算之估計未來現金流量現償 之間的差額而釐定。有關減償虧損將 不會於以後期間回撥。 為可供出售証券投資於收支報表所確 認之減債不可於其後經收支報表回 撥。為可供出售債務證券於收支報表 所確認之減債，倘其公允償於減償虧 損確認後有所調高，可於日後回撥。 2 應付賬款及應計費用、遞延收益及附 屬公司應收款項 應付賬款及應計費用、遞延收益及附 屬公司應收款項初步按公允值計算， 日後按使用實際利率法計算的已攤銷 成本列賬。 2．6 現金及等同現金 現金及等同現金包括存於銀行及手頭 的現金、活期存款。

28 撥備 集團因過往事件招致現行責任，可能 需要償還債務。在此情況下，集團需 要撥補確認負債。撥備款額由管理層 於結賬日對責任所需作出最適當估 計。倘屬重大影響，以貼現現值計 算。 存貨 自籌資金業務持作轉售之存貨按成本 或可變現淨值兩者較低者入帳。成本 以加權平均法計算。 減值 在每年結算日，集團會審查資產的帳 面值，確定資產有沒有出現減值虧損 跡象。若估計資產的可收回金額較帳 面值為低，則須將帳面值調低至可收 回金額。而所產生的減值會即時確認 為開支。 倘若所作出的減債虧損可於日後回撥 ，資產的帳面值會調高至重估的可收 回金額，推調高後之可收回金額不可 多於資產於以前年度未有減值虧損的 帳面疸。所回祖的減值虧損會即時確 認為收入。 收入 政府補助及指定捐款必須與開支配對 及按有關開支的會計期予以確認為收 入。剩餘的整筆經常撥款根據現行教 資會的規定亦會列為收入及轉撥至大 學一般及發展儲備基金。

29 用作購置會折舊的物業及設備的補助 及捐款會以遞延設備基金入帳並按會 計政策附註2.5及10的規定在有關資產 的可使用年限內攤銷。 一般捐款在收取或應收時確認為收入。 學費及租金收入概於完成服務後確認 入帳。 財務資產的利息收入以時間基準按結 存金額及適用利率計算O＄用利率即 按財務資產預計於可使用年期內收取 之估計未來現金款項折算至該資產賬 面淨值之利率。 留本基金於接收的年度內列入限定基 金帳項。留本基金所產生的收入於收 支報表中入帳。當保存本金之要求之 期限終止或捐贈人放棄該要求，留本 基金會由限定基金轉入收支報表。 2．10 營運租約 2．10h）集團為出租者 來自營種租約的租金收入在有關租約 年期內按直線基準確認。初期商討及 安排營運租約所產生的直接成本會計 入出租資產的帳面金額，並於有關紐 約年期內按直線基準確認。 2．10 集團為承租者 根據營運租約應付之租金以直線基準 按有關租約之年期於收支報表內列 賬。作為訂立期營浬租約誘因之已收 及應收利益，亦按直線基準於有關租 約年期分攤。

30 2．11 退休格和開支 為界定供款退休計劃所支付之款項， 從供款到期日列為支出。 2．12 外匯 每一集團成員之個別財務報表乃以其 主要的經營所在地之貨幣（其功能貨幣） 呈覽。為製定綜合財務報表，每一實 體之業績及財務狀況則需以港幣縝算 ，港幣為大學之功能貨幣及作為呈覽 綜合財務報表所用貨幣。 於縝制個別實體之財務報表時，以有 關實體功能貨幣以外之貨幣（外幣）進行 交易，乃按交易當日適用之匯率入 賬。於各結算日，以外幣計值之貨幣 項目按結算日之匯率重新換算。按公 允值列賬之非貨幣項目按公允值定價 當日適用之匯率重新換算。以外幣並 按歷史成本計算之非貨幣項目則不會 重新換算。 因結算貨幣項目及重新換算貨幣項目 而產生之匯兌差額撥入其產生的期間 之收支報表。因重新換算按公允償列 賬之非貨幣項目而產生之匯兄差額撥 入當期之收支報表，惟因重新換算非 貨幣項目之收益或虧損而產生之匯兌 差額，而該收益或虧損需直接於基金 結餘內確認者除外。該等非貨幣項目 之有關收益或虧損之任何外匯成份會 一併直接於基金結餘內確認。

31 已頒佈但尚未生效之新香港財務報告準則 本集團並無提早應用以下香港會計師公會已頒佈但於2006年6月30日（200年新訂準則倘未生效之新訂準則、詮釋及修訂。本集目預 期採納該等2006新訂之準則將不會對本集團之財務報表產生重大影響。 香港會計準則第1號（修訂本） 香港會計準則第19號（修訂本） 香港會計準則第21號修訂本） 香港會計準則第39號修訂本） 香港會計準則第39號（修訂本 香港會計準則第39號及 香港財務報告準則4號修訂本） 香港財務報告準則第6號 香港財務報告準則第7號 香港財務報告詮釋委員會－詮釋N 香港財務報告詮釋委員會－詮釋5 香港財務報告詮釋委員會－詮釋6 香港財務報告詮釋委員會－詮釋7 香港財務報告詮釋委員會－詮釋8 香港財務報告詮釋委員會－詮釋9 資本披露 精算盈虧、公司計劃及披露 海外業務投資淨鍵 預測公司內部交易之現金流量對沖會計方法 公平值選擇 財務擔保合約 勘探及評估礦物資源’ 金融工具：披露’ 約2 解除、恢復及環境修復基金所產生權益之權利 因參與個別市場產生之責任．廢料電動及電子儀器 應用香港會計準則第惡性通貨膨脹經濟財務報告預下之重列法 香港財務報告準則第2之範圍 重估附帶衍生工具 於2007年1月1日或以後開展之年度期間生效。 於2006年1月1日或以後開展之年度期間生效。 於2005年12月1日或以後開展之年度期間生效。 於2006年3月1日或以後開展之年度期閭生效。 於2006年5月1日或以後開展之年度期間生效。 於2006年6月1日或以後開展之年度期間生效。

32 政府補助 教資會補助 整筆經常撥款／增補撥款 指定撥款 研究 房屋福利 其他 退還差餉及地租 建設撥款及校舍改建、加建及改善工程之整筆撥款 配對撥款 政府有關機構撥款

33 政府補助（績） 大學 教資會補助 整筆經常撥款／增補撥款 指定撥款 研究 房屋福利 其他 退還差餉及地租 建設撥款及校舍妀建、加建及改善工程之整筆撥款 配對撥款 政府有關機構撥款

34 學費、課程及其他收費 綜合 教資會資助課程 學費 入學申請及其他收費 非教資會資助課程 教資會資助課程 學費 入學申請及其他收費 非教資會資助課程

35 外界捐款 綜合及大學 建設項目 獎學金及助學金 學術及研究活動（附註） 香港賽馬會慈善信託基金 大學興建創新科技中心 生物科技研究之活動 大學

36 輔助服務 綜合 學生宿舍 膳食服務 紀念品部 租金收入 教職員繳納之租金 其他 學生宿舍 膳食服務 紀念品部 租金收入 教職員繳納之租金 其他

37 其他收入 研究合約 其他 出售附屬公司所得溢利 研究合約 其他 綜合 大學

38 開支 薪酬及福利 營運支出 折舊 總計 總計 學術及研究 教學及研究 圖書館 中央電回設備 其他教學服務 小計 校務支援 管理及一般事務 校舍及有關費用 學生及通識教育服務 其他活動 2006度總開支 2005年度總開支 薪酬及福利包括集團於有闖年度為退休金計劃所支付之供款共118，800，

39 高收入員工 高收入員工歸納於以下級別內： 綜合及大學 營運支出分析 學術及研究 一般辦公室／教學及科研費用／設備 圖書館書籍及期刊 研究生助學金 管理及一般事務 核數師酬金 財務費用 一般保險 一般辦公室費用／設備 法律費用

40 開支（續） 薪酬及福利 營運支出 折舊 大學 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 小計 校務支援 管理及一般事務 校舍及有關費用 學生及通識教育服務 其他活動 小計 2006年度總開支 2005年度總開支

41 營運支出分析（續） 綜合 校舍及有關費用 一般辦公室費用／設備 物業保險 差餉及地租 維修及保養／小型工程 公共事業、清潔及保安支出 學生及通識教育服務 一般辦公室費用／設備 學生醫療及牙科保健 宿舍 獎學金及助學金 學生活動 其他活動

42 營運支出分析（續） 大學 學術及研究 一殷辦公室／教學及科研費用／設備 圖書館書籍及期刊 研究生助學金 管理及一般事務 核數師酬金 財務費用 一般保險 一般辦公室費用／設備 法律費用

43 營運支出分析（續） 大學 校舍及有關費用 一般辦公室費用／設備 物業保險 差餉及地租 維修及保養／小型工程 公共事業、清潔及保安支出 學生及通識教育服務 一般辦公室費用／設備 學生醫療及牙科保健 宿舍 獎學金及助學金 學生活動 其他活動

44 轉撥至限定/其他基金 本年度的收入與開支分類為特定用途及一般用途。前者之盈餘撥入限定基金，而後者則撥入其他基金。 限定基金 其他基金 限定基金 其他基金 綜合 收入 政府補助 學費、課程及其他收費 利息及投資收入 外界捐款 輔助服務 其他收入 開支 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 校務支援 管理及一般事務 校舍及有關費用 學生及通識教育服務 其他活動 本年度營運所得盈餘 所佔聯營公司/共同個體的經營業績 本年度可轉撥之盈餘

45 轉撥至限定/其他基金（續） 限定基金 其他基金 限定基金 其他基金 大學 收入 政府補助 學費、課程及其他收費 利息及投資收入 外界捐款 輔助服務 其他收入 開支 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 校務支援 管理及一般事務 校舍及有關費用 學生及通織教育服務 其他活動 本年度可轉撥之盈餘

46 物業及設備 樓宇 在建工程 傢具及設備 總計 綜合 成本 2004年7月1日之結餘 添置 出售/撇銷 2005年6月30日之結餘 添置 匯兌差額 出售/撇銷 2006年6月30日之結餘 2004年7月1日之結餘 本年度計算之折舊 出售／撇銷 2005年6月30日之結餘 本年度計算之折舊 匯兌差額 出售/撇銷 2006年6月30日之結餘 賬面淨值 2006年6月30日之結餘 2005年6月30日之結餘 以上之物業及設備頂目按直線法依照下列年率計算折舊 樓宇 每年2％ 傢具及設備 每年20％－25％

47 物業及設備（續） 樓宇 在建工程 傢具及設備 大學 成本 2004年7月 1日之結餘 添置 轉撥 出售／撇銷 2005年6月30日之結餘 添置 出售/撇銷 2006年6月30日之結餘 折舊 2004年7月1日之結餘 本年度計算之折舊 出售／撇銷 2005年6月30日之結餘 本年度計算之折舊 出售／撤銷 2006年6月30日之結餘 限面淨值 2006年6月 30日之結餘 2005年6月30日之結餘 大學座落於西貢約60公頃之土地，由政府按名義租金批出，為期58年，至2047年6月30日止。 以上之物業及設備項目按直線法依照下列年率計算折舊 樓宇 每年2％ 傢具及設備 每年20％－25％

48 財務資產 持至到期日財務資產 可供出售財務資產 非上市財務資產之公允值 非上市財務資產之成本（附註） 上市財務資產之市疸 由私人公司發行之非上市股本證券結算日成本扣除減值計量，原因合理公允值之估計範圍太大 綜合 大學 持至到期日財務資產 可供出售財務資產 非上市財務資產之公允值 上市財務資產之市值 香港物流及供應鏈管理應用技術中心有限公司 權益 香港註冊無般本及保證有限償還公司 公司組織大綱及章程 lscm 非上市財務資產 納米及先進材料研發院有限公司

49 於聯營公司權益 所佔淨資產 非上市投資成本值 聯營公司 業務 架構模式 註冊地點 營運地點 擁有權益 持有股本類別 主要活動 綜合 深港產學研基地 有限責任公司 中華人民共和國 注入資本 促進深圳經濟特區高新科技 的發展，並培育精英專才 下文載列為聯營公司之財務資料概要 總資產 總負債 資產淨值 集團應佔聯營公司之資產淨值 營業額 本年度溢利 集團年內應佔聯營公司業績

50 於合資企業權益 共同控制實體 所佔淨資產 共同控制實體 業務架構模式 註冊地點／營運地點 持有股本類別 擁有股本類別 擁有股權 於董事局之投票權 業務性質 綜合 浙江港科大先進製造研究所有限公司 中外合資 中華人民共和國 注入資本 促進製造業的研究工作 集團持有“浙江港科大”之51％股權，並於5席之董事局內佔有3席，擁有60％之投票權。但是，根據“浙江港科大”之公司章程及股東協議 ，所有重大之事項包括財務及營運之決策必須得到集團及其他主要股東一致決議通過，因此，集團把”浙江港科大”歸類為共同控制之實體。

51 投資於附屬公司 非上市投資成本值 附屬公司 註冊地點l國家 擁有股權 主要活動 香港科技大學持續進修學院有限公司 香港科大地產有限公司 香港科大研究開發有限公司 廣州香港科大研究開發有限公司 香港 香港 香港 中華人民共和國 直接持有 間接持有 開辦教育科目及課程 不活動 杷大學的研究項目所引發的創新科 技轉化為商業投資 提供研究及開發服務

52 存貨 紀念品部之存貨 綜合及大學 於年內確認作支出之存貨為港幣329，634元o005年：港幣355，032元）。 應收帳款及預付款頂 綜合 預付款項及按金 應收賬款 預付款項及按金 應收賬款 應收賬款於發出通知後須立即償還。 校董會認為應收賬款及預付款項之賬面值接近其公允值。

53 現金及現金等值 綜合 銀行存款 於三個月內到期 於三個月後到期 其他銀行及現金結餘 大學 銀行存款 於三個月內到期 於三個月後到期 其他銀行及現金結餘 其他銀行及現金結餘包括已簽發但未兌現之支票。於2006年6月30日時並無實質透支（200：沒有)

54 應付賬款及應計費用 綜合 其他應付賬款及應計費用 教資會應收款項 大學 其他應付賬款及應計費用 教資會應收款項 校董會認為應付賬款及應計費用之賬面值接近其公允值。

55 教職員福和撥備 綜合 退職金 合約訂明之旅費 代假期金及其他 應付於： 一年內 一年後 退職金 合約訂明之旅費 代假期金及其他 大學 應付於： 一年內

56 遞延收益 教資會補助 政府有關機構撥款 捐款 總計 綜合及大學 2004年7月1日之結餘 補助收益 計入收支報表 轉入遞延設備基金 2005年6月 30日之結餘 補助收益 計入收支報表 轉入遞延設備基金 2006年6月 30日之結餘 一年後

57 遞延設備基金 綜合及大學 7月1日之結餘 樓宇 傢具及設備 於年內已收及應收的補助及捐款用作購置物業及設備 樓宇 傢具及設備 為以補助及捐款購置的物業及設備所需折舊之款項而轉賬至收支報表（附註） 樓宇 傢具及設備 6月30日之結餘 樓宇 傢具及設備

58 限定基金 留本基金 投資重估儲備 其他限定基金 總計 綜合及大學 2004年7月1日之結餘 本年度盈餘 留本基金收入 留本基金轉撥至收支報表 於可供出售財務資產未實現之盈利 可供出售財務資產之未實現盈利於出售 時被確認及轉租至收支報表 基金轉扭 2005年6月30日之結餘 本年度盈餘 留本基金收入 於可供出售財務資產未實現之盈利 可供出售財務資產之未實現盈利於出售 時被確認及轉撥至收支報表 基金轉撥 2000年6月30日之結餘

59 其他基金 一般及發展儲備基金 其他 一般基金 總計 綜合 2004年7月1日之結餘 本年度盈餘 於聯營公司所佔法定儲備之變動 基金轉撥 2005年6月30日之結餘 本年度盈餘 於聯營公司所佔法定儲備之變動 匯兌儲備之變動 基金轉撥 2006年6月30日之結餘 2004年7月1日之結餘 本年度盈餘 基金轉撥 2005年6月30日之結餘 本年度盈餘 基金轉撥 2006年6月30日之結餘

60 配對撥款及關建捐款 大學教育資助委員會（教資會）安排配對補助金計劃，教資會根據院校所籌集的合規格捐款配發撥款。計劃中所籌集的撥款及捐款及相關開支已於收支表中入帳。而未使用的餘額則留存在有關基金項下。此外，教資會要求額外披露配對撥款及相關捐款的資料，為附合要求有關收支的詳情摘錄如下： 教資會配對撥款 配對捐款 教資會配對撥款 配對捐款 綜合 7月 1日之結餘 收入 撥款／捐款 投資／利息收入 支出 教學及研究 獎學金／助學金 管理及一般事務 6月30日之結餘

61 有關連人士的交易 所有牽涉大學校董會成員或主要管理人員或與該等人士有利益關係的櫃搆之採膽及捐款活動均按照大學的條例及程序於日常業務 運作下進行。在此財務報表，大學及集團與政府部門、欐關或政府軍位之間的一切交易，均被視為輿有關建人士的交易.政府與大學間因日常業務關係而支付的差的及費用等交易除外OM年內與有關連人士的交易大致已包括於附註3及附註20之政府補助內。 除上述者外，大學及集團與其他有關連人士訂立的交易如下： 大學 附屬公司 與附屬公司之交易 支付予附屬公司之租金 附屬公司支付之管理費 附屬公司支付之租金 附屬公司支付之項目經常開支 附屬公司代收之學費 附屬公司償還代支之其他費用 附屬公司應付款頂 附曰公司應收款項 附屬公司應付／應收款項並無抵押，不計利息，於收到知會後須立即償還。 聯營公司 從聯營公司收取之股息 與聯營公司之交易 支付予聯營公司之租金／其他費用 主要管理人員的酬金 薪金及其他短期僱員福利 離職福利

62 承擔 資本承擔 以下為尚未於財務報表作出準備之資本承擔 已簽約 已獲授權但尚未簽約 已簽釣 已獲授權但尚未簽的 營運租的之承擔 截至六月三十日止，集日於不可撤銷營運租約之條款下所簽定之日後最低租賃付款合共如下： 首年內 第2至第5年內 第5年之後 於年內集日所收取物業租金 截至六月三十日止，大學於不可徹銷營運租約之條款下所簽定之日後最低租賃付款合共如下： 首年內r 第2第5年內 稅頂 大學根據香港稅務條例第88之規定獲豁免繳付稅頂，因此不需作出撥備。

63 財務風險管理 信貸風險 集團之主要財務資產為現金及等同現 金、應收賬款、預付款頂、持至到期日 財務資產及其他投資，該等為集團所承 受最高之信貸風險。 集團之信貸風險主要來自應收賬款。結 算日金額為呆賬準備後淨額，由集團管 理層根據過往經驗及經濟現況作評估。 因對手均為國際信貸機構給予高評級之 銀行，所以現金及等同現金之信貸風險 有限。持至到期日財務資產均為投資級 別，而其他投資，經由財務委員會挑選 及監察之下具豐富經驗之投資經理所管 理。 集團並無過度集中信貸風險，因擁有多 名對手，可分散風險。 利率風險 集團因利率轉變對銀行結餘之影響而須 承受利率風險。 價格風險 於結算日，本集團可供出售財務資產乃 按公允值計量。因此，本集團須承受價 格風險。管理層藉委任有關專才安排不 同風險之投資組合來管理此類風險。 外匯風險 集團之外匯風險主要來自港元和人民幣 之外匯變動。 集團以人民幣計算之資產和營運交易為 數不多，因此沒有參與任何外匯衍生工 具合約作為對沖外匯風險。 流通資金風險 集團有足夠資金應付其現有管理資金需 要

64 29．主要會計估計及判斷 在釐定部分資產和負債的賬面金額時， 集團就不確定的未來事件對於資產負債 表日該等資產和負債的影響作出了假 設。這些估計涉及對現金流量風險調整 或貼現率、未來薪金變動和影響其他成 本的價格未來變動的假設。集團根據過 去的經驗和對未來事件的預計作出估計 和假設，並定期覆檢。除對未來事件的 假設和估計外，集團採用會計政策時亦 需要作出判斷。 持有至到期投資 就持有的固定或可確定的付款和固定到 期日的非桁生金融資產，集團如有意及 有能力持有至到期的，則歸類為持至到 期日財務資產投資。在評估某金融資產 是否符合歸類為持至到期日投資的條件 時，管理層需要作出重大判斷。如果未 能對集團是否有意及有能力持有某特定 投資至到期日作出準確的判斷，可能會 導致整個投資組合需被重新歸類為可供 出售投資財務資產 呆壞賬撥備 本集團之呆壞賬撥備政策是根據對收回 款頂之可能性之評估、賬戶之賬齡分析 及管理層之判斷作出。在評估該等應收 款頂之最終變現時需要作大量判斷，包 括每名客戶之現時信譽及過往收款紀 錄。倘本集團客戶之財務狀況惡化，會 損壞其還款能力，因而有可能需要額外 撥備。