Financial Statements for the Year Ended 30 June 2009

Abstract

[evdate 2009-06-30] FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 財務報表截至2009年6月日止年度

CONTENTS 1- 3 Treasurer's Report Independent Auditor's Report 6 Consolidated Income and Expenditure Statement University Income and Expenditure Statement Consolidated Balance Sheet 12 - 13 University Balance sheet 14 - 15 Consolidated Statement of Changes in Fund Balances University Statement of Changes in Fund Balances Consolidated Cash Flow Statement University Cash Flow Statement Notes to the Financial Statements 目錄 司庫報告 Treasurer’s Report 獨立核數師報告 4 - 5 綜合收支報表 6-7 大學收支報表 8 - 9 綜合資產負債表 10 - 11 大學資產負債表 綜合資金變動表 大學資金變動表 16 - 17 綜合現金流動表 18 - 19 大學現金流動表 20 - 21 財務報表附註 22 - 83 2009 THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 香港科技大學 截至2009年6月日止年度 財務報表 TREASURER'S REPORT 2008/ Overview The financial tsunami sent shockwaves throughout the financial world in September 2008; and quickly spread to almost all sectors of the global economy. Although the investment portfolios managed by external fund managers of the University suffered quite a sizeable blow not too different from other similar portfolios the internally managed mainly in fixed deposits and bonds, have been relatively stable. The mix of the internally and externally managed portfolio resulted in a consolidated investment and interest return of $124.3 million ($118.5 million for 2007/08). With the closure of the Fourth University Grants Committee (UGC) Matching Grant Scheme (MGS) in April 2009 as well as the usual higher triennium-end the University saw its consolidated million million Notwithstanding these undesirable factors, the in 2012. Consolidated Income and Expenditure Consolidated income for the year decreased to $million from $2,857.3 million of 2007/08. The decrease was primarily due to a drop in donations and matching grants. Consolidated expenditure for the year increased to $million from $million in 2007/08. The increase was partly due to an upward cost of living salary adjustment made in line with that for the civil servants and other planned expenditure against the UGC Segment Reporting In order to present a clearer picture of the financial results of the University's operations, segment reporting is adopted for the first time this year showing the major sources of income for the University, and the expenditure incurred in relation thereto. 1 司庫報告 概況: 2008年9月，金融海嘯震動全球金融體系，並極 速散播至全球經濟每一個領域。雖然由大學外部 資金經理管理的投資組合如其他同類產品一樣蒙 受頗大的衝擊，但由內部管理主要集中於定期存 款及債券的投資表現則相對穩定， 20闊的9綜合投 資及利息回報為124，300，000 元年度為 118，500，000元)。加上2009年4月第四期教資會配 對撥款計劃的完結及三年撥款期末年慣常偏高的 支出，大學20闊的9 年綜合營運盈餘降至 129，600，000元。007的8年為458 ，200，000元)。儘管 有以上種種不利因素，大學仍會繼續按既定策略 開支為2012年的4年新學制作好準備。 綜合收入及開支 綜合收入由2007/08年度的2，857，300，000元減少至 09年度的2，683，000，000元，主要因為捐款及 配對撥款的下降。 綜合開支由2007/08年度的2，401 ， 100，000元上升至 09年度的2，557 ，300，000元，綜合開支的增幅 主要來自因跟隨公務員生活指數薪金調整而增加 的開支及其他教資會整筆撥款的計劃開支。 分部報告 為將大學運作之財務結果表達得更加清晰，大學 由今年開始採用分部報告，顯示大學主要收入來 源及相關的開支。 elsewhere, investments, internally externally 2008/09 return million spending, conso1idated 2008/09 operating surplus reduced to $129.6 mi11ion ($458.2 mi11ion for 2007/08). University continued its strategic investment in preparing for the 4-year Undergraduate (UG) system 2,683.0 2,557.3 2,401.1 UGC Block Grant.

UGC Block Grant-funded Activities was the last year of the extended triennium 2005-2009. A deficit of $60 million (surplus of $35.9 million to the usual higher level of expenditure at triennium end and the strategic spending for the 4-year UG system. The deficit spending is part and parcel of the University's budget strategy to prepare for the 4-year UG system. Fund Raising Related Activities As explained earlier, attributable to the financial tsunami and the closure of the Fourth Matching Grant Scheme in April 2009, donations and matching grant income fell sharply resulting in a lower surplus of $82.7 million for ($284.3 million for Self-Financing CPEP, Research and Other Activities A surplus of $106.9 million ($137.9 million for was generated primarily from self-financing continuing professional education programs (CPEP) and auxiliary services for student and staff accommodation. With the planned closure of the University's continuing education the HKUST College of Lifelong Learning by late year 2009; and slow down of the CPEP market, income from these activities had dropped. Capital Projects A number of capital projects to cater for the expansion for the 4-year UG system are still in progress. They include extension to the existing facilities, Lee Shau Kee Business Building, lAS academic building, 3 student hostels as well as the HKUST Shenzhen IER (Industry, Education and Research) Building. While a majority of these capital constructions are funded by UGC, the University has to contribute its non-UGC resources mainly for the 3 student hostels and the HKUST Shenzhen IER Building. 2 教資會整筆撥款資助之活動 09年度是2005-2009延伸三年撥款期的最後 一年，錄得60，000，000元虧損(2007/08 年度盈利 35，900，000元)。虧損主要來自三年撥款期末年慣 常偏高支出及上述4年新學制的策略開支。此項 赤字開支是包含於大學4年新學制預算計劃內。 當募及有關活動 如前所述，由於金融海嘯及2009年4月第四期教 資會配對攘款計劃的完結， 20凹的9年度捐款及配 對補助金的盈餘大幅下降至82，700，000元(2007/08 年度為284，300，000元)。 持續進倍教育活動，研究活動及其他活動 主要來自持續進修教育活動及為職員及學生住宿 提供之輔助服務所得之盈餘共106，900，000 元 。007/08年度為137 ，900，000元)。按計劃，大學將 於2009年尾結束香港科技大學持續進修學院， 加上持續進修教育市場的發展緩慢下來，此方面 的收入己下降。 建設項目 一系列為4年新學制而進行的擴建工程仍在施工 中，包括現有設施的擴建、李兆基商學大樓、科 大高等研究院大樓、三棟學生宿舍及香港科大深 圳產學研大樓等。雖然以上項目大部分資金由教 資會資助，大學仍須為三棟學生宿舍及香港科大 深圳產學研大樓籌集非教資會資金。 2008/09 mil1ion in 2007/08) was recorded. The deficit was due fel1 2008/09 2007/08). CPEP, 2007/08) University , s arm, Col1ege Limited, IAS wel1

2009 Outlook of a fully integrated ERP (Enterprise Resources Planning) IS system, the University is looking to hire both faculty and administrative staff in order to transition to 2012. The University is also in the process of reviewing its investment strategy with the objective of building a well-diversified investment portfolio that will enhance long term returns and minimize volatility under different SIGNED David Tak-Kei SUN Treasurer of the University 13 November 2009 3 展望 大學將延續為2012年大學四年新學制而制定的策 略開支:除上述新建樓宇建設項目及裝置一個全 整合的企業資源計劃(ERP)訊息系統外，大學將 為過渡2012年而預先聘請學術及行政職員。此外 ，大學正檢討現有投資策略，旨在建立多元化的 投資組合，增強長期回報並將各種經濟因素引致 的波動降至最低。 日 大學司庫 孫德基 2009年11 月13 日 The University will continue its strategic spending preparing for the 4-year UG system in 2012: in addition to the above-mentioned capital building construction projects and the implementation retums different economic conditions.

Deloitte.

2009, year then ended, and a summary of significant accounting Council's responsibility for the financial statements in internal financial material 4 獨立核數師報告書 INDEPENDENT AUDITOR'S REPORT 德勤 致:香港科技大學校董會 本核數師行已完成審核載於第6頁至第83頁內的 香港科技大學['大學']及其附屬公司[以下合稱' 集團']的財務報表，該等財務報表包括於2009年 6 月30 日的綜合資產負債表與大學資產負債表， 以及截至當日止年度的綜合收支報表與大學收 支報表、綜合資金變動表與大學資金變動表與 綜合及大學現金流動表，以及主要會計政策概 要及其他附註解釋。 校董會在財務報表的責任 貴校董會負責遵照香港會計師公會頒佈的香港 財務報表準則，編製及真實公平地呈列該等財 務報表。有關責任包括設計、實施及維護與編 製及真實而公平地呈列財務報表有關的內部監 控，以使財務報表不存在由於欺詐或錯誤引起 之重大錯誤陳述、選擇並應用適當的會計政 策;及在不同情況下作出合理的會計估計。 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') set out on pages 6 to 83, which comprise the consolidated and University balance sheets as at 30 June 2009, the consolidated and University income and expenditure statements, the consolidated and University statements of changes in fund balances and the consolidated and University cash flow statements for the policies and other explanatory notes. The Council of the University is responsible for the preparation and the true and fair presentation of these financial statements accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants (the 'HKICPA'). This responsibility includes designing, implementing and maintaining intemal control relevant to the preparation and the true and fair presentation of the financiaI statements that are free from materiaI misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's responsibility to express an opinion on these financial statements based on our audit and to report our opinion solely to as a and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the HKICP A. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's including the assessment of the risks of material misstatement of the financial statements, assessments, the auditor considers internal control relevant to the entity's preparation and true and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion the financial statements give a true and fair view of the state of affairs of the University and the Group as at 30 June 2009 and their surplus and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards. SIGNED Deloitte Touche Tohmatsu Certified Public Accountants HONG KONG 13 November 2009 核數師的責任 本行的責任乃根據核數的結果，對該等財務報 表發表意見，並僅向貴校董會報告，除此之 外本報告概不可用作其他用途。本行無須就本 報告的內容向任何其他人士負上或承擔任何法 律責任。本行乃按照香港會計師公會頒佈的香 港核數準則進行審核工作。該等準則規定本行 須遵照道德規定以計劃及進行審核，以合理確 保此等財務報表是否存有重大錯誤陳述。 審核包括進行程序以取得與財務報表所載金額 及披露事項有關的審核憑證。選取的該等程序 而見乎核數師的判斷，包括評估由於欺詐或錯誤 引起財務報表出現重大錯誤陳述的風險。在作 出該等風險評估時，核數師考慮與實體編製及 真實而公平地呈列財務報表有關的內部監控， 以設計適用於不同情況的審核程序，但並非為 對實體的內部監控是否有效表達意見。審核亦 包括評價貴校董會所採用的會計政策是否恰 當及所作的會計估算是否合理，以及評價財務 報表的整體呈列方式。 本行相信，本行已取得充份恰當的審核憑證， 可為本行提供審核意見的基礎。 意見 本行認為，財務報表已按照香港財務報告準則 真實及公平地反映大學及集團於2009年6 月30 日 的財務狀況以及截至當日止年度的皈支結算和 現金流動。 已簽署 德勤關黃陳方會計師行 執業會計師 香港 2009年11 月13 日 Our responsibility is you, body, liabi1ity rnisstatement. perforrning judgment, rnisstatement whether due to fraud or error. In making those risk internal Council, opinion. In our opinion, HONGKONG 5

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 Income Government Investment Income Expenditure Learning and Research Management and General Surplus from operation for the year Notes Restated 2008

綜合收支報表 截至2009年6月日止年度 附註 2009 重編

收入 政府資助及撥款 Govemment Subventions and Grants 4 1,521,252 1,597,800 5 592,514 596,447 6 124,315 118,548 7 67,467 204,169 8 242,807 212,761 23 134,682 127,614 2,683,037 2,857,339 9 學費、課程及其他放費 Tuition, Programmes and Other Fees 利息及投資收入 Interest and Investment lncome 外界捐款 Donations and Benefactions 輔助服務及其他收入 Auxiliary Services and Other Income 轉撥自設備儲備 Transfers from Capital Reserves

開支 教學及研究 Instruction and Research 1,667,763 圖書館 Library 中央電腦設備 Central Computing Facilities 80,517 79,712 87,987 68,628 其他教學服務 Other Academic Services 52,035 46,228 1,888,302 1,766,934 校務支援 Institutional Support

學生及一般教育服務 Student and General Education Services 130,254 128,009 380,593 361,326 122,211 109,029 35,991 35,865 669,049 634,229 2,557,351 2,401,163 125,686 456,176 6 校舍及有關費用 Premises and Related Expenses 其他活動 Other Activities 本年度營運所得盈餘

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2009 Surplus for the year before transfers Transfers to I (from): 2009 Notes Restated 2008 (1,124) 綜合收支報表(續) 截至2009年6月30 日止年度 所佔共同控制個體的經營業績 Share ofResult of a Jointly Controlled Entity 所佔聯營公司的經營業績 Share of Result of an Associate 本年度轉撥前盈餘 轉摟至I(自) 大學教育資助委員會(教資會)整筆撥款儲備 University Grants Committee (UGC) Block Grant Reserves 籌募及教資會配對撥款儲備 Donations and UGC Matching Grants Reserves 其他儲備 Other Reserves 附註 (150) 4,085 129,621 24 (60,026) 25 82,669 26 106,978 129,621 重編

1 ,124) 3,142 458,194 35,879 284,378 137,937 458,194

UNIVERSITY INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 Income Fees Expenditure Central Institutional General General Services Surplus for the year before transfers Notes 8 2009 $'000 1,519,823 571,606 125,976 178,183 134,682 1,570,675 80,517 87,274 52,035 1,790,501 380,593 122,211 47,991 132,125 Restated 2008 $'000 1,597,614 563,860 118,893 155,062 127,614 79,712 46,228 1,673,548 117,871

大學收支報表 截至2009年6月30日止年度 收入 政府資助及撥款 Government Subventions and Grants 學費、課程及其他收費 Tuition, Programmes and Other Fees 利息及投資收入 Interest and Investment Income 外界捐款 Donations and Benefactions 輔助服務及其他收入 Auxiliary Services and Other Income 轉撮自設備儲備 Transfers from Capital Reserves 開支 學術及研究 Learning and Research 教學及研究 Instruction and Research 圖書館 Library 中央電腦設備 Centra1 Computing Facilities 其他教學服務 Other Academic Services 校務支援 Institutiona1 Support 管理及一般事務 Management and Genera1 校舍及有關費用 Premises and Related Expenses 學生及一般教育服務 Student and General Education Services 其他活動 Other Activities 本年度轉摟前盈餘 附註 4 5 6 7 8 23 9 67,467 2,597,737 124,316 675,111 2,465,612 重騙 00 204,169 2,767,212 1,479,635 67,973 361,326 109,029 55,865 644,091 2,317,639 449,573

UNIVERSITY INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2009 82,443 Reserves $'000 大學收支報表(續) 截至2009年6月30 日止年度 附註2009 Notes 00 轉撥至(自) Transfers to (from): 教資會整筆撥款儲備24 (60,026) UGC Block Grant R巴serves 籌募及教資會配對撥款儲備25 82,443 Donations and UGC Matching Grants Reserves 其他儲備26 109,708 Other Reserves 132,125 重編 Restated 2008 35,879 278,028 135,666 449,573

CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2009 Non-Current Assets Joint Maturity Current Assets Current Liabilities

Notes 11 12 12 13 14 12 17 18 19 20 21 22 2009 $'000 3,324,331 214,240 887,452 50,401 0 328,500 4,804,924 672 135,994 1,297,739 1,560,026 272,204 61,726 646,719 980,649 Net Current Assets Total Assets Less Current Liabilities 2008 $'000 3,251,755 161,683 978,957 47,235 150 373,500 4,813,280 7,568 480 134,120 75,000 250,723 67,025 420,106 37,854 2,155,772 6,969,052 綜合資產負債表 2009年6月日 非流動資產 物業及設備 Property and Equipment 持至到期日財務資產 Held-to-Maturity Financial Assets 可供出售財務資產 Available-for-Sale Financial Assets 於聯營公司權益 Interest in an Associate 於合資企業權益 Interest in a J oint Venture 到期日超過一年之定期存款 Bank Deposits with 1\在aturity over One Year 流動資產 持至到期日財務資產 Held-to-Maturity Financial Assets 存貨 Stocks 應收眼款及預付款項 Accounts Receivable and Prepayments 原到期日超過三個月之定期存款 Bank Deposits with Original Maturity over Three Months 現金及等同現金 Cash and Cash Equivalents 流動負債 應付脹款及應計費用 Accounts Payable and Accruals 教職員福利撥備 Provision for Staff Benefits 遞延收益 Deferred Income 流動資產淨值 資產總值減流動負債 10 附註

158,623 3,153,054 61 ,726 2,1 55,772 NET ASSETS

TOTAL FUNDS Council 13

SIGNED SIGNED $'000 6,927,025 3,324,331 1,024,969 1,757,282 6,927,025 $'000 6,927,629 3,251,755 1,103,671 1,677,520 6,927,629

SIGNED Business and 綜合資產負債表(續) 2009年6月日 CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30 JUNE 2009 非流動負債 Non-Current Liabilities 教職員福利撥備 Provision for Staff Benefits 資產淨值 NETASSETS 設備儲備 Capital Reserves 教資會整筆撥款儲備 UGC Block Grant Reserves 當募及教資會配對撥款儲備 附註 Notes 21 23 24 25 Donations and UGC Matching Grants Reserves 其他儲備 Other Reserves 投資重估儲備 Investment Revaluation Reserve 資金牌和 TOTALFUNDS 26 校董會於2009年11 月13 日核准本財務報表 Approved by the Counci1 on November 2009 己是草書 孫德基 大學司庫 David T.K. SUN Treasurer of the University 日草草書 陳繁昌 校長 TonyF. CHAN President 11 2009 50,304 797,191 23,252 2008

41,423 754,883 139,800 黃世邦 協理副校長(行政)及財務處處長 Philip S.P. WONG Associate Vice-President for Administration and B usiness Director of Finance UNIVERSITY BALANCE SHEET AS AT 30 JUNE 2009 non-Current Assets

Property and Equipment Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Investment in an Associate Investments in Subsidiaries Loan to a Subsidiary Bank Deposits with Maturity over One Year Current Assets Held-to-Maturity Financial Assets Stocks Accounts Receivable and Prepayments Bank Deposits with Original Maturity over Three Months Cash and Cash Equivalents mtlbjt{ft Current Liabilities Accounts Payable and Accruals Provision for Staff Benefits Deferred Income Net Current Assets Total Assets Less Current Liabilities Notes 11 12 12 13 15 16 12 17 18 19 20 21 22 2009 $'000 3,291,678 214,240 886,452 9,430 10,000 36,200 328,500 4,776,500 158,623 672 169,140 1,297,739 1,412,713 185,760 61,344 643,584 890,688 2,148,199 6,924,699 2008 $'000 3,235,111 161,683 977,957 9,430 10,000 373,500 4,767,681 7,568 480 151,105 75,000 2,587,601 187,492 66,520 420,106 674,118 2,147,636 6,915,317 Liabilities 2009~6 J=j 30 B UNIVERSITY (Cont'd) NET ASSETS TOTAL FUNDS $'000 50,304 6,874,395 3,291,678 1,024,969 765,052 23,252 6,874,395 $'000 41,423 6,873,894 3,235,111 1,103,671 1,691,551 703,761 139,800 6,873,894 大學資產負債表(續) 2009年月日 UNlVERSITY BALANCE SHEET (Cont'的 AS AT 30 JUNE 2009 非流動負債 Non-Current LiabiIities 教職員福利撥備 Provision for Staff Benefits 資產淨值 NETASSETS 設備儲備 Capital Reserves 教資會整筆撥款儲備 UGC Block Grant Reserves 籌募及教資會配對撥款儲備 Donations and UGC Matching Grants Reserves 其他儲備 Other Reserves 投資重估儲備 Investment Revaluation Reserve 資金總和 TOTALFUNDS 13 附註 Notes

CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES Donations Deferred Matching Investment Capital Restricted Capital UGC Block Grants Other Revaluation Funds Other Funds Reserves Grant Reserve Total Funds Note 23) (Note 24) (Note 25) (Note 26) 2007 Balance as at 1 July 2007, as previously reported (1,510,616) (2,195,297) 1,067,792 1,398,165 631,757 134,142 0 Reclassification Balance as at 1 July 2007, restated Surplus for the year, restated (Note 2.1) Unrealised gain on Available-for-Sale Financial Assets Loss realised upon disposal of Available-for-Sale Financial Assets transferred to income and expenditure Transfers from Deferred Income Transfers to income and expenditure statement Inter-fund transfer in connection with capital expenditure Change in share of statutory reserves of an Associate Change in exchange reserve Balance as at 30 June 2008 balances are 14 綜合資金變動表 轉募及教資會 配對撥款儲備 遞延設備基金 教資會整筆撥款 投資重估儲備 限定基金 設備儲備 儲備 其他儲備 其他基金 UGC Block 資金總和 Other Funds Total Funds (附註23) (附註24) (附註25) (附註26) 2007年月1 日之結餘 重新分類 2007年月1日之重編結餘 本年度盈餘，重編(附註2.1) 於可供出售財務資產末實現之盈利 於出售可供出售財務資產時產生之虧損被轉撥至收支報表 轉撥自遞廷收益 轉眼至收支報表 與設備儲備有關之資金轉撥 於聯營公司所佔法定儲備之變動 匯兌儲備之變動 2008年月30 日之結餘 軍揣冒反 The fund balances are reclassified in alignment with the segment categories as shown in the Income and Expenditure by segment under Note 10.

CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) Donations Deferred Investment Capital Restricted Capital UGC Block Grants Other Revaluation Funds Other Funds Reserves Grant Reserves Total Funds 綜合資金變動表(續) 籌募及教資會 配對撥款儲備 遞延設備基金 教資會整筆撥款 投資重估儲備 限定基金設備 儲備儲備 其他儲備 其他基金 資金總和 OtherFunds TotalFunds

(附註23) (附註24) (附註25) (附註26) (Note 23) (Note 24) (Note 25) (Note 26) 2008年月日之結餘O O O 3,251 ,755 1,103,671 1,677,520 754,883 139,800 6,927,629 Ba1ance as at 1 Ju1y 2008 本年度盈餘/ (虧絀) O O O O 60,026) 82,669 106,978 O 129,621 Surp1us / (deficit) for the year 於可供出售財務資產末實現之虧損O O O O O O O 90,059) 90,059) Unrealised 10ss on Availab1e-for-Sa1e Financia1 Assets 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O O O O O O O 26,489) 26,489) Recognition of unrealised gain on disposa1 of A vailab1e回for-Sa1e Financia1 Assets transferred to income and expenditure statement 轉撥自遞延收盤O O O 119,606 O O O O 119,606 Tranfers from Deferred Income 轉眼至收支報表O O O 134,682) O O O O 134,682) Transfers to income and expenditure statement 與設備儲備有關之資金轉撥O O O 87,669 18,676) 3 ,952) 65,041) O O Inter-fund transfer in connection with capital expenditure 其他資金轉撥O O O O O 996 (996) O O Other inter-fund transfer 於聯營公司所佔法定儲備之變動O O O O O O 1,884 O 1,884 Change in share of statutory reserves of an Associate 匯兌儲備之變動O O O (17) O 49 (517) O (485) Change in exchange reserve 2009年6月日之結餘O O O 3,324,331 1,024,969 1,757,282 797,191 23,252 6,927,025 Balance as at 30 June 2009 UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES Donations Deferred Matching Investment Capital Restricted Capital UGC Block Grants Other Revaluation Funds Funds Other Funds Reserves Grant Reserves Reserves Reserves Reserve Total Funds Loss Available-far-Financial The fund balances are reclassified in alignment with the segment categories as shown in the Income and Expenditure by segment under Note 10. 大學資金變動表 籌募及教資會 配對撥款儲備 遞延設備基金教資會整筆撥款投資重估儲備 限定基全設備儲備儲備其他儲備其他基金UGC Block 資金總和 OtherFunds TotalFunds (附註23) 附註24) 附註25) 附註26) (Note 23) (Note 24) (Note 25) (Note 26) 2007年7 月1 日之結餘2,803,407 1,499,412 O O O O O 6,470,882 Balance as at 1 July 2007, as previously reported 重新分類1,499,412) O Reclassification 2007年7 月1 日之重編結餘O O O 1,413,256 6,470,882 Balance as at 1 July 2007, restated 本年度盈餘，重編(附註2.1) O O O O O Surplus for the year, restated (Note 2.1) 於可供出售財務資產末實現之盈利O O O O O O O Unrealised gain on Avai1able-for-Sale Pinancial Assets 於出售可供出售財務資產時產生之虧損被轉撥至收支報表O O O O O O O Iβss realised upon disposal of Avai1able-for-Sale Pinancial Assets transferred to income and expenditure 轉撥自遞延收益O O O O O O O Transfers to Deferred Income 轉眼至收支報表O O O O O O O Transfers to income and expenditure statement 與設備儲備有關之資金轉撥O O O O 267 O O Inter-fund transfer in connection with capital expenditure 2008年6月30 日之結餘O O O Balance as at 30 June 2008 16 Donations Deferred matching Investment Capital Restricted Capital UGCBlock Grants Other Revaluation Funds Funds Other Funds Grant Total Funds $'000 $'000 $'000 $'000 $'000 $'000 Balance July Surplus loss Available Financial (disposal Available-Sale Financial 0 0 0 0

大學資金變動表(續) UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) 籌募及教賣會 配對撥款儲備 遞延設備基金教賣會整筆撥款投資重估儲備 限定基金設備儲備儲備其他儲備其他基金資金總和 OtherFunds Reserves Reserves Reserves Reserves Reserve TotalFunds (附註23) (附註24) (附註25) (附註26) (Note 23) (Note 24) (Note 25) (Note 26) 2008年7月日之結餘O O O 1,691 ,551 Ba1ance as at 1 Ju1y 2008 本年度盈餘/ (虧細) O O O O O Surp1us / (deficit) for the year 於可供出售財務資產末實現之虧損O O O O O O O Unrealised 10ss on Availab1e-for-Sale Financia1 Assets 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O O O 26,489) 26,489) Recognition ofunrealised gain on disposa1 of Availab1e-for-Sa1e Financia1 O O O O Assets transferred to income and expenditure statement 轉撥自遞延收益O O O O O O O Tranfers from Deferred Income 轉脹至收支報表O O O (134,682) O O O O Transfers to income and expenditure statement 與設備儲備有關之資金轉撥O O O 47,421) O O Inter-fund transfer in connection with capital expenditure 其他資金轉撥O O O O O 996 (996) O O Other inter-fund transfer 2009年6月日之結餘O O O Balance as at 30 June 2009 11 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 Operating Activities Net Surplus for the year Adjustments for: Depreciation Loss on disposal of Property and Equipment Interest and Investment Income of premium Held-to-Maturity Financial Jointly Controlled cash flow Accruals Net Cash from Operating Activities 18 2009 $'000 ((3,935) (21,481 Restated 2008 綜合現金流動表 截至2009年6月日止年度 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 營運活動 折舊 加到 本年度盈餘 壞帳沖銷 Bad debt written off 持至到期日財務資產溢價攤銷I(折實) Amortisation of premium/ (discount) on Maturity Financial Assets 所聯營公司及共同個體的經營業績 Share of results of an Associate and a Jointly Controlled Entity 轉撥自設備儲備 Transfers from Capital Reserves Operating cash flow before movement in working capital 存貨之(增加)1 減少 (Increase) / decrease in Stocks 應收款及預付款項之減少I(增加) Decrease / (increase) in Accounts Receivable and Prepayments 應付賑款及應計費用之增加 Increase in Accounts Payable and Accruals 遞延收益之增加 Increase in Deferred Income 教職員福利撥備之增加 Increase in Provision for Staff Benefits 營運活動淨現食流入

重編 458,194 160,338 144,483 117 495 124,315) 118,548) 1,965 (1,000) 3 ,935) 2,018) 134,682) (127,614) 29,109 354,008 (192) 7,800 11,518) 21 ,481 28,071 226,613 34,021 3,582 5,896 288,393 410,479 CONSOLIDATED CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2009 Investing Activities Payment Increase in Bank Deposits Net Cash (Used in) / From Investing Activities Financing Activities Net Cash from Financing Activities Net (Decrease) I Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Year Cash and Cash Equivalents at the End of the Year 2009 $'000 ((1,177,739) ((154 (1,524,470) (1,116,471) Restated 2008 $'000 ((33,000) ((3,042) 170 綜合現金流動表(續) 截至2009年6月日止年度 CONSOLIDATED CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2009 重編 投資活動 購買物業及設備 Payment for purchase of Property and Equipment 出售物業及設備之收入 Proceeds from disposal of Property and Equipment 233,202) 118,907) 1 ,177,739) 33 ,000) 375,211) 9,889) 25,043) 3 ,042) 169,634 76,227 116,937 114,715 增助 之過 款心 存 期 定 購貨持至到期日財務資產 Purchase of Held-to-Maturity Financial Assets 投資於可供出售財務資產之增加 Increase in Available-for-Sale Financial Assets 從持至到期日財務資產所得之回贖收入 Proceeds from redemption of Held-to-Maturity Financial Assets 利息及投資收入 Interest and investment income received 投資活動浮現金{流出)1 流入 融資活動 用以購買物業及設備之資助及撥款或捐款收入 Subventions and Grants or donations received for purchase of Property and Equipment 119,606 75,395 119,606 75,395 1 ,116,471) 512,148 2,676,458 2,161,004 3,306 1,560,026 2,676,458 融資活動淨現金流入 現金及等同現金之淨減少/增加 年初之現金及等同現金 匯兌變動之影響 Effect of Foreign Exchange Rate Changes 年終之現金及等同現金 Operating Activities Surplus for the year Adjustments for: Allowance for amounts due from subsidiaries Depreciation Loss on disposal of Property and Equipment Interest and Investment Income Held-to-Maturity Financial Transfers from Capital Reserves cash flow decrease in Stocks (Increase) in Accounts Receivable and Prepayments Decrease) / increase in Accounts Payable and Accruals Increase in Deferred Income Increase in Provision for Staff Benefits Net Cash from Operating Activities 2009 $'000 112 (192) (1,732) Restated 2008 $'000 141,212 494 (1,000) 大學現金流動表 截單2009年6月日止年度 UNIVERSITY CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 營運活動 本年度盈餘 調整: 附屬公司應付款項之減值 折舊 出售物業及設備之虧損 利息及投資收入 持至到期日財務資產溢價/(折實)之攤銷 Amortisation of premium / (discount) on Maturity financial Assets 轉撥自設備儲備 Operating cash flow before movement in working capital 存貨之(增加) /減少 (Increase) 應收般款及預付款項之增加 Prepayments 應付賑款及應計費用之(減少) /增加 遞延收益之增加 教職員福利撥備之增加 營運活動淨現金流入

132,125 12,000 156,443 125,976) 1,965 134,682) 41,987 20,361) 1 ,732) 223,478 3,705 246,885 重編 449,573 20,000 141 ,212 118,893) 1 ,000) 127,614) 363,772 44,250) 11,635 34,021 5,659 370,838 Investing Activities loan to a subsidiary Net Cash (Used in) / From Investing Activities Financing Activities Net Cash from Financing Activities Net (Decrease) / Increase in Cash and Cash Equivalents cash and Cash Equivalents at the Beginning of the Year Cash and Cash Equivalents at the End of the Year 2009 (1,174,888) Restated 2008 ((33,000) ((3,042) 大學現金流動表(續) 截至2009年6月日止年度 UNIVERSITY CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2009 重編 投資活動 購買物業及設備 Payment for purchase of Property and Equipment 定期存款之增加 Increase in Bank Deposits 購買持至到期日財務資產 Purchase of Held-to-Maturity Financial Assets 213,276) 106,891) 1 ,177,739) 33 ,000) 375,211) 9,889) 25,043) 3 ,042) 169,634 76,227 154 170 116,302 112,780 36,200) 1 ,541,379) 36,355 投資於可供出售財務資產之增加 Increase in Available-for-Sale Financial Assets 從持至到期日財務資產所得之回贖收入 Proceeds from redemption of Held-to-Maturity Financial Assets 出售物業及設備之收入 Proceeds from disposal of Property and Equipment 利息及投資收入 Interest and investment income received 投資活動淨現金(流出)/流入 融資活動 用以購買物業及設備之資助及撥款或捐款收入 Subventions and Grants or donations received for purchase of Property and Equipment 119,606 75,395 融資活動浮現食流入 Activities 119,606 75,395 現金及等同現金之淨(減少)/增加 1 ,174,888) 482,588 年初之現金及等同現金 2,587,601 2,105,013 年終之現金及等問現金 Year 1,412,713 2,587,601 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2009 1. 2. 22 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 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 15. The registered address and principal place of operation is Clear Water Hong Kong. The financial statements are presented in Hong Kong dollars, which is the same as the functional currency of the University. CHANGES IN ACCOUNTING POLICIES Donations of an endowment nature in prior years were credited directly to the 'Donations and UGC Matching Grants Reserves (formerly the Restricted Funds) in the year of receipts. With effect from 1 July the University adopted the same policy on all donations irrespective of their nature as set out in note 3.5, (i.e. all donations are recognized as income when received). The new accounting policy mentioned above has been adopted with the opening fund balances and the comparative information adjusted for the amounts relating to the prior periods as disclosed in the Statement of Changes in Fund Balances. The effect of the changes in accounting policy to the income and expenditure statement are 2.1. The University believes that this change in the basis of preparation of financial statements will result in a more appropriate presentation and consistent accounting treatment on all donations received. 1. 2. 財務報表附註 2009年月日 JUNE 2009 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15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。 會計政策之更改 往年以留本基金形式之捐贈於收款時 直接記於籌募及教資會配對撥款儲備 (前為限定摹金)內，由2008年7 月1 日起 大學對所有捐款，不論捐款的形式 均採用同一會計政策，如附註3.5所 述概於收取時確認為收入。 以上採用的會計政策追索至資金的期 初數，而變動後的結餘及相關的前期 數項，已列於資金變動表。 會計政策變動對收支報表的影響則概 述於附註2.1 大學相信採用變動後的會計政策，能 把所有收到的捐贈款項以更惜當及一 致的會計方法呈列於財務報告上。 government, business, Bay, 2008, income retrospectively, adjusted income summarised in note 2. 1. Statements 2.1 Summary of the Effect of the Changes in Accounting Policy balance at 2007/08 reported received in 2007/08 $'000 $'000 $'000 Consolidated Income Government Benefactions Reserves Expenditure Surplus from operation for the year Controlled Share of Result Surplus for the year before transfers Transfers to:

23 會計政策變動之影響概要 由於上文附詮2 所述之會計政策變動， As a result of change in the accounting policy described in note 2 above, 2008年度盈餘增加了 93,000 元。而此the surplus for the year has be巳n increased by $76.793 million in the 對於該期終資金結餘沒有影響。其影響概 述如下: year 2008 and there is no financial impact in the fund balance at that year end date. The effect of this change is illustrated as follows: 2007/08年度 如前期呈報已收留本資 As previously Endowments 重編 in Restated 2008 綜合 收入政府資助及撥款1,681 ,063 。Government Subventions and Grants 學費、課程及其他收費 596,447 Tuition, Programmes and Other Fees 利息及投資收入 Interest and Investment Income 外界捐款 Donations and Benefactions 輔助服務及其他收入 Auxiliary Services and Other Income 轉撥自設備儲備 Transfers from Capital Reserves 2,780,546 76,793 2,857,339 開支2,401 ,163 2,401 ,163 本年度營運所得盈餘所佔共同控制個體的經1 ,124) Share of Result of a Jointly Controlled 營業績Entity 所佔聯營公司的經營業 of an Associate 本年度轉撥前盈餘381,401 轉撥至: 教資會整筆撥款儲備UGC Block Grant Reserves 籌募及教資會配對撥Donations and UGC Matching 款儲備Grants Reserves 其他儲備Other Reserves 2.1 Summary of the Effect of the Changes in Accounting Policy (Cont'd) it Endowments received in $'000 $'000 $'000 University J&A Income Programmes and Other Fees Expenditure Surplus for the year before transfers Reserves 會計政策變動之影響概要(續) (Cont'的 2008 年度 如前期呈報已收留本資 As previously Endowments 重編 reported received Restated 2008 2007/08 2008 大學 University 收入政府資助及撥款1,680,877 O 1,597,614 Government Subventions and Grants 學費、課程及其他收費563,860 O 563,860 Tuition, 利息及投資收入118,893 O 118,893 Interest and Investment Income 外界捐款171,579 76,793 204,169 Donations and Benefactions 輔助服務及其他收入155,210 155,062 Auxiliary Services and Other Income 轉撥自設備儲備 127,614 Transfers from Capital Reserves 2,690,419 76,793 2,767,212 開支2,317,639 2,317,639 本年度轉撥前盈餘372,780 76,793 449,573 轉撥至: 教資會整筆撥款儲備35,879 35,879 UGC Block Grant serves 籌募及教資會配對撥201 ,235 76,793 278,028 Donations and UGC Matching 款儲備Grants Reserves 其他儲備135,666 135,666 Other Reserves 372,780 76,793 449,573 25 PRINCIPAL ACCOUNTING POLICIES The financial statements have been prepared on the historical cost basis except for certain availab1e-for-sa1e 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: Basis of Consolidation financial June each 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 balances Investments in Subsidiaries balance at cost less any identified impairment loss. Interest in an Associate An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. 3. 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值列 脹除外。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。 3.1 綜合基準 綜合財務報表包括截至每年6 月30 日大 學及受大學控制之個體的財務報表。 控制權為大學有權掌管該機構的財務 及營運政策，而自其業務獲取利益。 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 合眼內抵銷。 3.2 投資於附屬公司 除表 扣債 值負 本產 成資 按在 資後 投損 的虧 司值 公減 屬認 附確。 於可帳 學何入 大任中 3.3 於聯營公司權益 聯營公司指本集團可對其政策決定作 重要影響之機構，而該機構文不屬於 集闡之隔屬公司或於合資企業權益。 3. 3.1 3.2 3.3 financial historica1 availab1e-financia1 va1ue Financial principal The consolidated financia1 statements incorporate the financia1 statements of the University and entities controlled by the University made up to 30 year. Contro1 financia1 resu1ts included disposa1, necessary，adjustments are made financia1 statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All significant transactions and ba1ances between group entity are eliminated on consolidation. Investments in subsidiaries are included in the University's ba1ance sheet 1ess loss. 3.4 3.5 3.4 3.5

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 net assets of the less any impairment loss. Where a group entity transacts with an associate of the profits or losses are eliminated to the extent of the Group's interest in the relevant associate. 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 A joint venture arrangement that involves the establishment of a separate entity in which venturers have joint control over the economic activity of the entity 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 net assets of the jointly controlled less any impairment loss. Where the Group transacts with its jointly controlled profits or losses are eliminated to the extent of the Group's interest in the jointly controlled entity. Income Government subventions and grants or donations containing a condition for refund of any unspent balance are initially credited to the Deferred Income Account when the amounts are received or receivable. Amounts are then transferred from the Deferred Income Account in the following manner: 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 權益按成本值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 淨資產，扣除所屬投資減值虧損入 眠。 生抵 產內 而益 易權 交佔 司所 公團 營集 聯於 與均 構損 機虧 的或 內利 團盈。 集之銷 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運上之策略， 必須合資各方決議一致通過。 共同控制實體是透過成立一個獨立機 構的合資企業安排，合資者均擁有共 同控制實體之經濟活動。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。共向控制實體權 益按成本值列入綜合資產負債表，其 後會就收購後集團應佔共同控制實體 之淨資產扣除所屬投資減值虧損入 脹。 集團與共同控制實體交易而產生之盈 利或虧損均於集團所佔權益內抵銷。 收入 當收到或應收取舍退款條款的政府資 助及撥款或捐款時，該筆款項會先記 入遞延收畫畫帳項，然後再由遞延收益 帳項依從以下方式轉撥: financia1 ba1ance associate, 1ess 10ss. Group, losses re1evant assocìate. contractua1 contro1, financia1 re1ating control. invo1ves contro1 joint1y inc。可orated financia1 ba1ance adjusted jointly entity, 1ess 1oss. joint1y controlled entity, 10sses joint1y controlled Government ba1ance receivab1e. 26 27 in respect of the recurrent block grant: all other than those intended for capital received in respect of the year are transferred to the income and expenditure statement unless the accumulated surpluses from block grants exceeded the maximum limit permitted by UGC. In that event, the transfer to the income and expenditure will refundable to the government. donations intended for other expenditure: amounts equivalent to the expenditure incurred during the year are transferred to the income and expenditure statement. amounts are transferred each year from the Capital Reserves to the income and expenditure statement as Government Subventions and Grants or Donations & Benefactions equivalent to the depreciation charges of the related property and equipment for the year. Other grants and donations are recognized as income when received or receivable. Outstanding pledges are not recognized as income unless a legal obligation to donate is obtained from the donor. Tuition auxiliary services and rental income on a time 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. Income from contract research is recognized on a percentage of completion basis when the fee notes are issued. 經常整筆撥款:除準備用作設備支 出外，所有當年該收取的撥款將轉 至收支帳內，除非整筆撥款的累積 盈餘超越教資會所規定的最高限 額。在此情況下，轉至收支帳的數 額將扣除需退還政府的數額。 用作其他使用的資助及撥款或捐 款:等同年內所使用之款額會轉至 收支帳內。 用作設備開支的資助及撥款或捐 款:運用於有關物業或設備之資本 性開支的款項會轉至設備儲備脹 內。隨後，等同有關物業及設備的 每年折舊費會由設備儲備轉入收支 限內之政府資助及撥款或外界捐款 脹項。 其他撥款及捐款在收取或應收時確認 為收入。未兌現的承諾捐獻，則在集 團確立捐贈人有法定義務實現所許下 之承諾才確認為該年度的收益。 學費、輔助服務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。適用利率即 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脹 面潮直之利率。 來自科研合約之收入按完成百份比並 開立跟單予以確認。 grants, expenditure, statement wi11 be reduced by any amount in respect of subventions and grants or in respect of subventions and grants or donations intended for capital expenditure: amounts incurred in relation to capital expenditure on related property and equipment are transferred to Capital Reserves. Subsequently, fees, auxi1iary are recognised when services are provided. Interest income from a financial asset is accrued basis, exact1y 3.6 28 Property and Equipment Property and 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 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 derecognition 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. Property and equipment are financed by the Capital Reserves which are made up of two components. Items grants or specific donations as stated in paragraph 3.5 above. 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值後入帳。 除在建工程外，計除剩餘估值後，物 業及設備按估計可使用年期以直線法 計算折舊 在建工程按成本值減去任何已確認之 減值虧損入脹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 使用該資產將不會帶來未來經濟利益 時刪除確認。資產出售或刪除確認所 得收入與資產帳面值的差額，於收支 報表確認為收益或虧損 包含在設備儲備的物業及設備主要分 為兩部份 用政府資助及撥款或特定捐款購置 的項目如上3.5所述 equipment, 1ess accumu1ated accumu1ated 1osses equipment, usefu1 residua1 va1ue, 1ess 1oss until completion completed plant equipment disposa1 loss sa1es Capita1 whích items funded by Government subventions and specifíc 3.7 3.7 29 Items funded by other funding sources. Amounts equivalent to the incurred property and equipment costs are transferred out of the retained balances of respective reserves and capitalised under the Capital Reserves. Subsequently, each year, an amount equivalent to the depreciation charges for the related property and equipment is reverted back from the Capital Reserves to the respective reserves. 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 as on initial recognition. Effective interest method The effective interest method is a method of calculating the amortised cost of financial assets and financial liabilities and of allocating interest income and interest expense over the relevant period respectively. The effective interest rate is the rate that exactly discounts estimated future cash receipts and cash payments through the expected life of the respective financial assets and financial liabilities, or, where appropriate, a shorter period. Interest income and interest expense are recognised on an effective interest basis. 而由其他款項購價的項目，等問其 物業及設備的成本，將自其所屬的 滾存儲備轉撥至設備儲備。隨後， 等同於該物業及設備的折舊值會由 設備儲備按年轉撥回所屬的儲備。 金融工具 當集團成為金融工具合約條文之參與 者峙，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。於購買或發行財務 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值或於 財務負債的公允值中扣除(視何者適用 而定)。 主會辦蹲在于 實際利率法乃計算財務資產及財務負 債之攤銷成本及按有關期問攤分利息 收入及利息開支之方法。實際利率乃 將估計日後現金收入及現金支出按相 關財務資產及財務負債之預計使用年 期，或較短時期(倘合適)實際折現 之利率。 利息收入及利息開支按實際利率基礎 來確認。 respective Subsequent， directly liabilities, appropriate, Accounts receivable and amounts due from subsidiaries receivable initial fair value, and are subsequently measured at amortised cost using the effective interest rate method. When accounts receivable or amounts due from subsidiaries is considered uncollectible, it is written off against the allowance account. 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. Subsequent recoveries of amounts previously written off are (b) Investments 30 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 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 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 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 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. 3.7 個) 應收賑款及附屬公司應付款項 應收眼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。當應收聽款 或附屬公司應付款項被認為不能收回 時，其將從壞帳準備上撤銷。獲確認 之減值撥備乃根據資產之脹面金額與 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。隨後追回以前撇銷之款項會 計入收入。 3.7 (b) 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 定下合約條款。 於其後報表日，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，減去滅值虧損所代表之不可收 回值。倘有客觀證據顯示資產出現減 值虧損則於收支報表中確認。獲確認 之滅值乃根據投資之脹面金額與按於 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 收間升值金額，則將予以回撥，惟困 撥後之眼面金額不能多於此減值虧損 之前已確認攤銷之成本值。 3.7 (a) Accounts receivab1e and amounts due from subsidiaries are measured at initia1 recognition at va1ue, receivab1e uncollectib1e, va1ue initia1 previous1y credited to income and expenditure statment. 3.7 sa1e concerned, va1ue, p1us attributab1e ho1d he1d-method, 1ess 10ss irrecoverab1e 10ss impaired, va1ue initia1 objective1y loss, 31 Investments other than held-to-maturity debt securities are classified as either investments held for trading or as available-for-sale investments, and are measured at subsequent reporting dates at fair value. Where securities are held for trading gains and losses arising from changes in fair value are included in income and expenditure statement for the period. For available-for-sale gains and losses arising from changes in fair value are recognised directly in the investment revaluation until the security is disposed of or is determined to be at which time the cumulative gains or losses previously recognised in the reserve are included in the income and expenditure statement for the period. 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 income and expenditure statement 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. 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. 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，其公允值變動引致 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 值變動引致的收益或虧損，於投資重 估儲備內確認，甚至出售或決定為該 証券減值，其累計於儲備之收益或虧 損才列入當期之收支報表中。 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值減任 何巳確認減值虧損計算。倘其備客觀 證明資產減值，則減值虧損於收支報 表確認。減值虧損數額乃根據資產之 脹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 值之間的差額而釐定。 為可供出售証券投資於收支報表所確 認之滅值不可於其後經收支報表回 撥。為可供出售債務証券於收支報表 所確認之減值，倘其公允值於減值虧 損確認後有所調高，可於日後回撥。 he1d-to-availab1e-sa1e va1ue. he1d purposes, 10sses va1ue availab1e-sa1e investments, losses va1ue direct1y reva1uation reserves, impaired, cumu1ative 10sses previous1y availab1e-sa1e va1ue reliab1y 1ess 10sses ba1ance initia1 10ss 10ss va1ue simi1ar financia1 10sses availab1e-sa1e subsequent1y 10sses availab1e-forsa1e subsequent1y va1ue objective1y re1ated 1oss. 3.9 3.7 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 amortised using the effective interest rate method. 3.7 Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits with an original maturity of three months or less at prevailing market rate. 3.7 Provisions 3.9 32 Provisions are recognised when the Group has a present obligation as a result of a past 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 material. Stocks held resale self-valued at the lower of cost and net realisable value. Cost is calculated using the weighted average method. Impairment At each balance sheet 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 their carrying the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. 3.7 (c) 應付脹款及應計費用、遞延收益及附 屬公司應收款項 應付脹款及應計費用、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 成本列膜。 3.7 (d) 現金及等同現金 現金及等問現金包括存於銀行之手頭 的現金及原到期日為三個月或以下以 現行市場利率之活期存款。 3.7 (e) 撥備 3.8 集團因過往事件招致現行責任，可能 需要價還價務。在此情況下，集團需 要撥備確認負債。撥備款額由管理層 於結脹日對責任所需作出最適當估 計。倘屬重大影響，以貼現現個計 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，集團會審壺資產的帳 國值，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。 (c) accruals, payab1e accrua1s, va1ue, subsequent1y cost, (d) equiva1ents origina1 1ess (e) 3.8 resu1t event, probab1e will settle sett1e ba1ance va1ue where the effect is material. Stocks he1d for resa1e in respect of self-financing operations are va1ued 10wer realisab1e calcu1ated ba1ance date, loss. 1ess amount, recognised immediate1y. 3.10 3.11 3.12 3.10 Where an impairment loss subsequently the carrying amount of the asset is increased to the revised estimate of its recoverable 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. Operating Leases 3.10 (a) The Group as lessor Rental leases relevant lease. 3.10 (b) The Group as lessee 3.11 3.12 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 as an expense when employees have rendered service entitling them to the contribution. Foreign Currencies In preparing the financial statements of the individual 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 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. 倘若所作出的減值虧損可於日後回撥 ，資產的帳面值會調高至重估的可收 回金額，惟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 帳面值。所間撥的滅值虧損會即時確 認為收入。 營運租約 3.10 集團為出租者 來自營運租約的租金收入在有關租約 年期內按直線基準確認o 3.10 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 脹。作為訂立期營運租約誘因之已收 及應收利益，亦按直線基準於有關租 約年期分攤。 退休福利開支 支 項為 款列 之後 付務 支服 所之 劃須 計所 休款 退供 款出 供作 定員 界僱。 為於出 外匯 於編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 允值列提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。 subsequently reverses, recoverab1e amount, wou1d 10ss reversa1 loss immediate1y. Renta1 income from operating 1eases is recognised on a straight-line basis over the term of the re1evant 1ease. Renta1s payab1e 1eases re1evant 1ease. receivab1e 1ease a1so 1ease p1ans are charged emp10yees financia1 individua1 entity, functiona1 rates ba1ance date, retrans1ated ba1ance va1ue historica1 retrans1ated. 33 34 Exchange differences arising on the settlement of monetary and on the retranslation of monetary 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 reserves. For such nonmonetary any exchange component of that gain or loss is also recognised directly in reserves. For the purposes of presenting the consolidated financial the assets and liabilities of the Group's operations outside Hong Kong are translated into the presentation currency of the Group Le. Hong Kong dollars) at the rate of exchange prevailing at the balance sheet and their income and expenses are translated at the average exchange rates for the year. Exchange differences arising, if any, are recognized in the exchange reserve. Such exchange differences are recognized in the income and expenditure statement in the period in which the foreign operation is disposed of. 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問 之收支報表。因重新換算按公允值列 眠之非貨幣項目而產生之匯兌差額撥 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儲備 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 直接於儲備內確認。 為呈列綜合財務報表，本集團境外業 務的資產及負債均以結算日通用匯率 換算為本集團的呈列貨幣(即港元) ，而 其收入及開支則以本年度平均陸率予 以換算。產生的匯兌差異確認於換算 儲備內。該匯兌差異於該境外業務被 出售期間之收支報表內確認。 settlement items, items, va1ue direct1y items, 10ss direct1y statements, trans1ated (i.e. ba1ance date, trans1ated In the current the Group has applied the following amendments and interpretations ('new HKFRSs') issued by the Hong Kong Institute of Certified Public Accountants ('HKICP which have become effective. HKAS 39 & HKFRS 7 (Amendments) Reclassification of financial assets HK(IFRIC) - INT 14 HKAS 19 - The limit on a defined benefit minimum funding requirements and their interaction The adoption of these new HKFRSs had no material effect on how the results and financial position for the current or prior accounting periods have been adjustment The Group has not early applied the following new and revised amendments and interpretations that have been issued but are not yet effective. HKFRSs (Amendments) HKFRSs (Amendments) HKAS 1 (Revised) HKAS 23 (Revised) HKAS 27 (Revised) HKAS 32 & 1 (Amendments) HKAS 39 (Amendment) Improvements to HKFRS Improvements to HKFRSs 20092 Presentation of Financial Statements3 Borrowing Costs 3 4 Consolidated and Separate Financial Statements 4 Puttable Financial Instruments and Obligations Arising on Liquidation3

Eligible hedged items4 35 應用新訂及經修訂香港財務報告準則 APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS 集閻於本年度首次應用下列由香港會計師公會頒佈之新準則、修訂及詮釋( r 新香港財務報告準則J ) ，全部已經生效 year, the following (“A'), become 香港會計準則第39號及香港財務報告準則第7號金融資產之讓新分類 (修訂〕 39 & 香港(國際財務報告準則詮釋委員會)-詮釋9及嵌入式衍生工具 港會計準則第39號(修訂) HK(IFRIC)- & 39 香港(國際財務報告詮釋委員會) -詮釋12 服務經營樣安排 12 S service concession arrangements 香浴(國際財務報告詮釋委員會) -詮釋的客戶忠誠計劃 IFRIC) -的T 13 Customer 香港(國際財務報告詮釋委員會) 詮釋14 香港會計準則第19號'界定福利資產之限制、最低資金要求及兩者之互動 關係 IFRIC, 採納該等新香港財務報告準則並無對本集團於本會計期間或過往會計期間之業績及財務狀況之編製及呈列方式構成任何重大影 響。因此，毋須作出任何前期調整。 Have prepared and presented. Accordingly, no prior year adjustment has been required. 本集團並無提早應用以下巴頒佈但尚未生效之新訂及經修訂準則、修訂或詮釋。 The Group early standards, amendments yet effective. 香港財務報告準則(修訂) 香港財務報告準則之改進I HKFRSs1 香港財務報告準則(修訂〕 (Amendments) 香港財務報告準則2009之改善2 Improvements 20092 香港會計準則第1號(修訂) 財務報表之呈列3 香港會計準則第23號(修訂) 同他 貸前 借故 香港會計準則第27號(修訂) 27 綜合及獨立財務報表4 Separate 香港會計準則第32號及第1號(修言D 32 & 可治金融工具及清盤時之責任3 香港會計準則第39號(修訂〕 39 合資格對沖項目4 item 3.13 HKFRS 1 (Revised) HKFRS 1 (Amendment) HKFRS 1 & HKAS 27 (Amendments) HKFRS 2 (Amendment) HKFRS 2 (Amendment) HKFRS 3 HKFRS 7 (Amendment) HKFRS 8 HK(INT 15 HK(INT 16 HK(IFRIC) INT 17 HK(INT 18

First-time adoption of Financial Reporting Standards 5 Additional exemptions for first-time adopters 5 Cost of an investment in a jointly controlled entity or Associate 3 Vesting conditions and cancellations3 Group cash-settled share-based payment transactions 5 Business combinations 4 disclosures about financial instruments3 Operating Segments 3 Agreements for the Construction of Real Estate 3

Hedges of a Net Investment in a Foreign Operation6 Distribution of non-cash assets to owners4 Transfer of assets from customers 7 應用新訂及經修訂香浩財務報告單則(續) APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS (Cont'd) 香港財務報告準則第1號(修吉D 香港財務報告準則第1號(修言D 香浴財務報告準則第1號及香港會計準則第27號 (修訂〕 香港財務報告準則第2號(修訂) 香港財務報告準則第2號(修訂〕 香港財務報告準則第3號(修言D (Revised) 香港財務報告準剝第7號(修訂) 香港財務報告準則第8號 香港(國際財務報告準則詮釋委員會) -詮釋的 HK(IFRIC) - 香港(國際財務報告準則詮釋委員會) -詮釋16 IFRIC) - 香港(劉際財務報告準則詮釋委員會) -詮釋17 香港(國際財務報告準則詮釋委員會) 詮釋18 IFRIC) - 首次採用香港財務報告準則5 ofFinancia1 額外豁免予首次採用者5 Additiona1 exemptions adopters5 附屬公司、共同控制實體或聯營公司之投資成本3 subsidiary, jointly controlled entity associate3 歸屬條件及設銷3 Vesting 集團庫存股份交易5 sett1ed payment 業務合併4 改善有關金融工具之披露3 Improving discosures financia1 業務分類3 房地產之建造合約3 Agreements Rea1 海外業務之淨投資對沖6 Hedges of Net Investment Operation 6 向擁有人派發非現金資產4 客戶轉讓資產7 36

Effective for accounting periods beginning on or after 1 January except the amendments to HKFRS effective for accounting periods beginning on or after 1 July 2009. 2009 Effective for accounting periods beginning on or after 1 January 2009, 1 July 2009 and 1 January 2010, as appropriate. Effective for accounting periods beginning on or after 1 January 2009. Effective for accounting periods beginning on or after 1 July 2009. Effective for accounting periods beginning on or after 1 January 2010. Effective for accounting periods beginning on or after 1 October 2008. Effective for transfer on or after 1 July 2009.

The adoption of HKFRS 3 (Revised) may affect the accounting for business combination for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009. HKAS 27 (Revised) will affect the accounting treatment for changes in a parent's ownership interest in a subsidiary that do not result in a loss of control, which will be accounted for as equity transactions, The Council anticipate that the application of the other new or revised amendments or interpretations will have no material impact on the results and the financial position of the Group, 應用新訂及經修訂香港財務報告準則(續) APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS (Cont'd) l 於2009年1 月1 日或以後開展之年度期問生效，惟香港財務報告準則第5號(經修訂)於2009年7月1 日或以後開展之年度期間生效。 beginning 2009, amendments 5, effective after Ju1y 於2009年1月1日、2009年7月1日及2010年間的或以後開展之年度期間生效。(倘適用)。 2009, Ju1y 2010, 於2∞9年1 月1 日或以後開展之年度期間生效。 4 於2009年7 月1 或以後開展之年度期間生效。 Ju1y 於2010年1 月1 日或以後開展之年度期問生效。 Periods 於2008年10月1 日或以後開展之年度期間生效。 Effective for 7 生效於2009年7月1 日或之後的轉讓。 Effective for Ju1y 採納香港財務報告準則第3號(修訂)或會影響業務合併(指收購日期為2009年7 月1 日或之後開始首個全年呈報期間開始時或 以後日子)的會計方法。香港會計準則第27號(修訂)將影響母公司於一間附屬公司的擁有權有變而不會導致失去控制權時的 會計處理，有關情說將按股權交易處理。校董會預期應用其他新或經修訂之準則或詮釋對本集團之業績及財務狀況將不會造成 任何重大影響。 Revised beginning annua1 beginning Ju1y result loss contro1, transactions. Counci1 anticipate new standards, materia1 resu1ts financia1 Group. 37

GOVERNMENT SUBVENTIONS AND GRANTS UGC Block Fund Grant funded Total 647 (Note 22) UGC Block t Grant funded Total 38 政府資助及撥款 GOVERNMENT SUBVENTIONS AND GRANTS 教資會資助及援款 University Grants Committee (UGC) Subventions and Grants 整筆經常撥款及指定撥款(附註22) Recurrent Block Grant and Earmarked Grants Not巳退還差的及地租 Rates and Government Rent Refunds 配對撥款 Matching Grants 政府有關機構撥款(附詮22) Grants from Government Agencies (Note 22) 教資會資助及撥款 University Grants Committee (UGC) Subventions and Grants 整筆經常撥款及指定撥款(附註22) Recurrent Block Grant and Earmarked Grants (Note 22) 退還差鋪及地租 Rates and Government Rent Refunds 配對撥款 Matching Grants 政府有關機構援款(附設22) Grants from Government Agencies (Note 22) 教資會聲學撥租車募及有關 教贊助活動活動 UGC Block 持鑽進修教 Grant Raising 育活動科研活動其他活動組計 Funded Related CPEP Research Other Total Activities 2009 綜合 Consolidated 106,117 1,441 ,647 126 20,621 O 26,766 1,245,287 26,766 177 110,561 106,243 1,489,034 教資會聲學撥轉學募及有獨 款資助活動活動重錯 UGC Block Fund 持續進修教Restated Grant Raising 育活動科研活動其他活動總計 Funded Related CPEP Research Other Total Activities 2008 O 108,461 綜合 Consolidated O 113,070 122,771 1,447,339 110 20,419 08,461 1,231 ,621 108,461 186 113,070 122,881 1,576,219 231,62108,461 186 134,651 122,881 1 ， 597 ， 80。

GOVERNMENT SUBVENTIONS AND GRANTS (Cont'd) Total Activities University University Grants Committee (Subventions and Grants recurrent Block Grant and Earmarked Grants (Note 22) Rates and Government Rent Refunds Matching Grants Grants from Government Agencies (Note 22)

UGC Block Fund Restated Grant- Raising funded Related Research Other Total Activities 2008 $'000 $'000 $'000 $'000 $'000 University University Grants Committee (UGC) Subventions and Grants Recurrent Block Grant and Earmarked Grants (Note 22) Rates and Government Rent Refunds Matching Grants Grants from Government Agencies (Note 22) 1,231,621 108,461 39 4. 政府資助及撥款(續) GOVERNMENT SUBVENTIONS AND GRANTS (Cont'd) 教資會資助及撥款 UGC) 整畫在經常撥款及指定撥款(的註22) Block 退還差餉及地租 配對撥款 政府有關機構撥款(附註22) 教資會資助及撥款 Committee(UGC) 整筆經常撥款及指定撥款(咐註22) Block 退還差餉及地租 配對撥款 政府有關機構撥款(附設22) 教資會整筆撥款 籌募及有關活動 款資助活動 UGC Block Grant- Raising 科研活動其他活動總計 funded Related Research Other 2009 大學 虫泣單位 循帥計叫開心間 重叫總 R TUITION Programmes and Other Fees Programmes and Other Fees 571,606 UGC Block Programmes and Other Fees 學費、課程及其他收費 TUITION, PROGRAMMES AND OTHER FEES 教資會整筆撥款資助活動 募捐及有關活動 款資助活動活動 UGC Block Fund 持續進修教育活動 Grant- Raising 總計 funded Related CPEP Total Activities 2009 綜合 Consolidated 學費、課程及其他收費 Tuition, Fes 322,202 1,247 269,065 592,514 大學 University 學費、課程及其他收費 Tuition, 322,202 1,247 248,157 571 ,606 教賣會聲響撥嚮募及有關 款資助活動活動軍搞 UGC Block Fund 持續鐘韓戰Restated Grant- Raising 育活動飽計 funded Related CPEP Total Activities 2008 綜合 Consolidated 學費、課程及其他收費 Tuition, Programmes and Other Fees 308,949 942 286,556 596,447 大學 University 學費、課程及其他收費 Tuition, 308,949 942 253,969 563,860 40 INTEREST AND INVESTMENT INCOME Consolidated far-Financial 124,315 118,548 University

41 利息及投資收入 2009 2008

綜合 利息及其他投資收入Interest and other investment income 可供出售財務資產之已實現盈利及投資收入25,488 Realised gains and investment income on Available-for-Sale Financial Assets 大學 利息收入Interest income 可供出售財務資產之巳實現盈利及投資收入25,488 Realised gains and investment income on Available-for-Sale Financial Assets 來自聯營公司之股息收入Dividend received from an Associate DONATIONS AND BENEFACTIONS Restated 2009 2008 $'000 Pledged Amounts Others Total Amounts Others Total (Ilftl!t25) (Ilfttt25) (Note 25) (Note 25) Consolidated and University 7. 外界捐款 DONATIONS AND BENEFACTIONS 學術活動及一般用途 Academic Activities and General Uses 獎學金及助學金 Scholarships and Bursaries 研究及其他項目(附註22) 承諾款項 Research and Other Projects (Note 22) 重編 計叫 絲盯 他加 綜合及大學 8. AUXILIARY SERVICES AND OTHER INCOME UGC Block Fund Grant Raising funded Related CPEP Research Other Total Activities $'000 Consolidated Research Contract 59,899 Residence Halls Rental Income Rental Contribution from Staff 6,143 0 19,218 Services Workshop Income and Other Sponsorships Research Project Sponsorships (Note 22) Miscellaneous UGC Block fund Restated Grant Raising funded Related CPEP Research Other Total Activities 2008 Consolidated Research Contract Residence Halls Rental Income 17,527 Rental Contribution from Staff Services Workshop Income and Other Sponsorships Research Project Sponsorships (Note 22) Miscellaneous

43 輔助服務及其他收入 研究合約 學生宿舍 HalIs 租金收入 教職員繳納之租金 服務收費，項目收入及其他贊助 Fees, 研究項目贊助(附註22) Research project 雜項收入 miscellaneous 研究合約 學生宿舍 Halls 租金收入 教職員繳納之租金 Contribution from Staff 服務收費，項自收入及其他贊助 Fees, 研究項目贊助(附註22) 雜項收入 Miscellaneous 教資會整筆撥款 UGC Block Grant funded

籌募及有關活動 2,017 持續進修教育活動 科研活動 綜合 其他活動 52,743 11,446 4,308

總計 58,620 21 ,687 4,616 21 ,218 教資會整筆 撥款 Grant funded 4,606 6,855 3,700 ,225 轉車募及有關 活動 持鑽進修教 育活動 科研活動 直言合 其他活動 54,095 重緝 總計 60,776 54,095 63,499 13,664 1,462 8. AUXILIARY SERVICES AND OTHER INCOME (Cont'd) UGC Block Fund Grant- Raising funded Related CPEP Research Other Total Activities 2009 $'000 $'000 $'000 $'000 $'000 $'000 University Research Contract Residence Halls Rental Income Services Workshop Income and Other Sponsorships Rental Contribution from Staff Research Project Sponsorships (Note 22) Miscellaneous 22,220 5,843 6,760 10,919 178,183 UGC Block Fund Restated Grant- Raising funded Related CPEP Research Other Total Activities 2008 University Residence Halls Rental Income Services Fees, Workshop Income and Other Sponsorships Rental Contribution from Staff Research Project Sponsorships (Note 22) Miscellaneous 17,586 1,008 5,681 129,325 155,062 44 輔助服務及其他收入(續) 研究合約 學生宿舍 Residence 租金收入 服務收費，項目收入及其他贊助 Fees, 教職員繳納之租金 Rental 研究項目贊助(附註22) 雜項收入 學生宿舍 租金收入 服務收費，項目收入及其他贊助 教職員繳納之租金 Rental 研究項目贊助(附註22) (Not巴22) 雜項收入 撥款 UGC Block Grant funded

縛募及有關 活動 持續進修教育活動

大學 科研活動

其他活動 總計 59,899 56,915 25,782 21,687 10,919 2,981 繳費會整畫在 撥款 Grant funded 4,606 4,900 6,855 1,225 持饋逛修教 育活動 科研活動 大學 university 其他活動 重編 總計

EXPENDITURE Salaries and Operating Benefits Expenses Depreciation Total Total $'000 $'000 $'000 $'000 $'000 Consolidated Learning and Research 61,100 Instruction and Research Library Central Computing Facilities Other Academic Services Sub-total Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Sub-total 2009 Total Expenditure for Year 2008 Total Expenditure for Year Included in Salaries and Benefits was a total sum of million representing the Group's contributions towards retirement benefits schemes for the respective accounting period. 9. 開支 EXPENDITURE 薪酬及福利 營運支出 折舊 總計 總計 9.1) 綜合 學術及研究 教學及研究 圖書館 中央電腦設備63,034 21 ,551 3,402 87,987 68,628 其他教學服務45,310 5,777 948 52,035 46,228 小計1,290,814 531,734 65,754 1,888,302 1,766,934 校務支援 管理及一般事務109,486 20,031 737 130,254 128,009 校舍及有關費用115,566 172,146 92,881 380,593 361,326 Expenses 學生及一般教育服務47,840 73,532 839 122,211 109,029 其他活動2,755 33,109 127 35,991 35,865 Other 小計275,647 298,818 94,584 669,049 634,229 2009年度總開支1,566,461 830,552 160,338 2,557,351 2,401 ,163 2009 2008年度總開支1,487,997 768,683 144,483 2008 薪酬及福利包括集團於有關年度為退休金計劃所支付之供款共128，200，叩0元(2008 : 122，400，0∞元)。 Included $128.2 (2008: $122.4 respective accounting 45. 2009 2008 Salaries and Operating Benefits Expenses Depreciation Total Total $'000 $'000 $'000 $'000 $'000 University Learning and Research Instruction and Research Other Academic Services Institutional Support General

115,566 172,146 92,881 380,593 361,326 Premises and related Expenses Student and General Education Services Included in Salaries and Benefits was a total sum of $million (2008: $million) representing the University's contributions towards retirement benefits schemes for the respective accounting period. 46 開支(續) EXPENDITURE (Cont'd) 薪酬及福利 營運支出 折舊 總計 總計 附註9 .1) (Note 9.1) 大學 學術及研究 教學及研究l,101 ,040 412,329 57,306 1,570,675 1,479,635 圖書館304 Library 中央電腦設備21 ,533 3,402 Central Computing Facilities 其他教學服務46,228 Other 71 ,879 61 ,960 Sub-total 校務支援 Institutional support 管理及一般事務106,694 16,986 636 124,316 117,871 Management and General 校舍及有關費用361 ,326 Premises and Related Expenses 學生及一般教育服務839 122,211 General 其他活動55,865 Other Activities 小言272,855 94,483 644,091 Sub“ total 2009年度總開支779,652 156,443 2,465,612 Total Expenditure for Year 2009 2008年度總開支141,212 Total Expenditure for Year 2008 薪金及福利包括大學於有關年度為退休金計劃所支付之供款共127 9.1 ANALYSIS OF OPERATING EXPENSES 2009 2008 $'000 $'000 Consolidated Learning and Research Management and General 9.1 營運支出分析 綜合 學街及研究 一般辦公室/教學及科研費用/設備I 309,779 General Office / Teaching and Research Expenses / Equipment 研究生助學金I 153,851 Postgraduate Studentships 圖書館書籍及期刊29,486 I Library Books and Periodicals 531 ,734 490,713 管理及一般事務 一般辦公室費用/設備I 15,630 General Office Expenses / Equipment 一般保臉General Insurance 法律費用Legal Fee 核數師酬金610 I 565 Auditor's Remuneration 財務費用Financial Charges 20,031 21,563 47 ANALYSIS OF OPERATING EXPENSES (Cont'd) Consolidated Premises and Related Expenses

Works Student and General Education Services Halls other Activities 9.1 營運支出分析(續) 2009 2008 綜合 校舍及有關費用 公共事業、清潔及保安支出1 Utilities, Cleaning and Security Services Expenses 維修及保養/小型工程1 Repair and Maintenance / Minor Works 差餉及地租27,457 1 26,675 Rates and Government Rent 一般辦公室費用/設備1 General Office Expenses / Equipment 物業保險1 Property Insurance 159,070 學生及一般教育服務 獎學金及助學金1 Scholarships and Bursary 宿舍1 Residence HaUs 學生活動1 Student Activities 一般辦公室費用/設備3,090 1 General Office Expenses / Equipment 學生醫療及牙科保健，468 Medical and Dental Care for Students 73,532 64,176 其他活動830,552 768,683 48 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2009 2008 University Learning and Research Management and General General Insurance 9.1 管道支出分析(續) 大學 學術及研究 一般辦公室/教學及科研費用/設備I 251 ,303 General Office / Teaching and Research Expenses / Equipment 研究生助學金I 153,851 Postgraduate Studentships 圖書館書籍及期刊I 27,083 Library Books and Periodicals 471,879 432,237 管理及一般事務 一般辦公室費用/設備I General Office Expenses / Equipment 一般保險General Insurance 法律費用I 954 Legal Fee 核數師酬金381 I 347 Auditor's Remuneration 財務費用I 200 Financial Charges 16,986 49 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2009 2008 $'000 $'000 University Premises and Related Expenses Works 27,457 Rates and Government Rent Student and General Education Services Residence Halls 8,950 Student Activities 3,090 General Office Expenses / Equipment Other Activities (Note) Note: 2008: The amount included an allowance for amounts due from subsidiaries of $12 million in year 2009 (2008 : $20 million). 50 9.1 營運支出分析(續) 校舍及有關費用 公共事業、清潔及保安支出 Utilities, Cleaning and Security Services Expenses 維修及保養/小型工程 Repair and Maintenance / Minor W orks 差餉及地租 般辦公室費用/設備 General Office Expenses / Equipment 物業保險 Property Insurance 學生及一般教宵服務 獎學金及助學金 Scholarships and Bursary 宿舍 Halls 學生活動 一般辦公室費用/設備 學生醫療及牙科保健 Medical and Dental Care for Students 其他活動(附誼) 冊封 大學 9.2 2009 2008 Remuneration includes contribution to gratuity / retirement housing and other benefits. For quarters, their housing benefits are calculated by reference to the rateable values assessed by the Rating and Valuation Department. 高收入員工 REMUNERATION OF HIGHER PAID STAFF Number of Employees 綜合及大學 Consolidated and University 年薪等個 Annual Equivalent Remuneration 36 22 salary, gratuity schemes, staff who are provided with

CONSOLIDATED INCOME AND EXPENDITURE BY SEGMENT Tuition Investment Operating (Deficit) I operation for Jointly UGC Block Activities Activities 32,590 119,466 UGC Block Research Activities Operating result of UGC Block Grant-funded Activities was transferred to UGC Block Grant Reserves; that of Fund Raising Related Activities to Donations and UGC Matching Grants Reserves,' and the remaining items to Other Reserves. 52 Other Activities 10. 綜合分部收支報表 收入 Income 其他非整筆撥款 Other Non-Block Grant 2009 教資會整筆 撥款資助活動 UGC Block Grant - funded Activities 政府資助及撥款 Government Subventions and Grants 學費、課程及其他收費 tuition, Programmes and Other Fees 利息及投資收入 Interest and Investment Income 外界捐款 Donations and Benefactions 輔助服務及其他收入21 ,218 Auxiliary Services and Other Income 轉撥自設備儲備49,146 Transfers from Capital Reserves 間接費用回收/分部間之收入15,387 Overhead Recovery Inter-segment Income 開支 Expenditure 薪金 Salaries 其他營運支出 Other operating expenses 折舊 Depreciation 間接費用回收/分部閑之開支 Overhead Recovery Inter-segment Expenditure 籌募及有關 活動 Fund Raising Related Activities 26,766 55,438 67,467 6,973 41 ,746 持續進修教育活動 CPEP Activities $'000 177 269,065 144 7,096 2,361 科研活勘其他活動 Research Other 總計 Total $'000 $'000 00。 142,779 106,243 1,521,252 分部間之交易 Inter-segment Transaction Elimination 淨總計 Net Total 所佔共同控制個體的經營業績 0 0 0 (150) (150) 0 (150) Share of Result of a Jointly Controlled Entity 所佔聯營公司的經營業績 0 0 0 枷4,085 0 仙5 Share of Result of an Associate 76,200 129,155 1,566,461 本年度(虧絀)盈餘(60,026) (Deficit) Surplus for the year 教資會整筆 撥款資助活動 UGC Block Grant funded Activities 其他非整筆撥款 Other Non-Block Grant 籌募及有關 活動 Fund Raising Related Activities

持續進修教育活動 CPEP Activities 分部間之交易 Inter-segment Transaction Elimination 淨總計 Net Total (74,182) UNIVERSITY INCOME AND EXPENDITURE BY SEGMENT Government Subventions and Grants Programmes and Other Fees Donations and Benefactions Auxiliary Services and Other Transfers from Overhead Recovery I Inter-segment Expenditure Salaries Other Operating expenses Depreciation Expenditure UGC Block Grant - funded Activities (Fund Raising Related Activities Other Non-Block Grant CPEP Activities Research Activities 2009 Other Activities total Inter-segment Transaction Elimination Net Total UGC Block Grant funded Activities Raising Related Activities Other Non-Block Grant CPEP Activities Research Activities 2008 Other Activities inter-segment Transaction Elimination Net Total

10. 大學分部收支報表 收入 Income 其他非整筆撥款 教資會整筆 撥款資助活動 政府資助及撥款 Government 學費、課程及其他收費 Tuition, 利息及投資收入 Interest and Investment Income 外界捐款 輔助服務及其他收入 Services Income 轉撥自設備儲備 146 Transfers from Capital Reserves 間接費用回收/分部間之收入 Inter -Income 開支 薪金 Salaries 其他營運支出 折舊 間接費用回收/分部間之開支 Overhead Recovery Inter-segment 本年度(虧絀) 盈餘 (Deficit) plus for the year

籌募及有關活動 26,766 67,467 41,746 持續進修教育活動 分部間之交易 Elimination 61,883) 淨總計 教資會整筆 撥款資助活動 其他非整筆撥款 籌募及有關活動 Fund 持續進修教育活動 Activities 科研活動 其他活動 總計 Total 分部間之交易 63,601) 淨總計 Net Total PROPERTY AND EQUIPMENT COST Balance as at 1 July 2007 Additions Exchange translation difference Disposals I Written Off balance as at 30 June 2008 Additions Transfers Disposals I Written Off 2009 Balance as at 30 June 2009 DEPRECIATION Balance as at 1 July 2007 Provided for the year Exchange translation difference Disposals / Written Off Balance as at 30 June 2008 Provided for the year Exchange translation difference Written Balance as at 30 June 2009 CARRYING VALUES Balance as at 30 June 2009 Balance as at 30 June 2008 Buildings Construction Fixtures and in progress equipment Consolidated The University campus located in Sai Kung of approximately 60 hectares was granted by the Hong Kong Government at a nominal rent for 58 years through 30 June 2047. A piece of land situated at Shenzhen of approximately 7,484 square meters was granted at a nominal amount to HKUST R&D Corporation (Shenzhen) a subsidiary of the by the Shenzhen Municipal Government for the construction of an Industry-Education Research base. 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 11. 物業及設備 PROPERTY AND EQUIPMENT 成本 2007年月日之結餘 添置 匯兌差額 出售/撤銷 添置 轉撥 出售/撤銷 折舊 的年7月1 日之結餘 本年度計算之折舊 匯兌差額 出售/撤銷 30 日之結餘 June 本年度計算之折舊 匯兌差額 出售/撤銷 Disposals / Written Off 2009年6月30 日之結餘 賬面淨值 2009年6月30 日之結餘 2008年6月日之結餘 在建工程 傢具及設備 progress 綜合 大學座落於西貢約公頃之土地，自香港政府按名義租金批出，為期58年，至2047年6月30日止。 總 深圳市政府按名義租金批予集團其中一間附屬公司[港科大研究開發(深圳有限公司一幅7，484平方米土地作為興建產學研墓地之用。 7,484 Limited, Group, 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% 54 COST Balance as at 1 July 2007 Additions Disposals I Written Off Balance as at 30 June 2008 Additions Transfers Disposals I Written Off Balance as at 30 June 2009 DEPRECIATION Balance as at 1 July 2007 Provided for the year Disposals I Written Off Balance as at 30 June 2008 year Disposals / Written Off Balance as at 30 June 2009 CARRYING VALUES Balance as at 30 June 2009 Balance as at 30 June 2008 Buildings Construction Fixtures and in progress equipment University Total The University campus located in Sai Kung of approximately 60 hectares was granted by the Hong Kong Government at a nominal rent for 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% per annum 55 物業及設備(續) PROPERTY AND EQUIPMENT (Cont'd) 成本 2007年7月1 日之結餘 添置 出售/撇銷 2008年6月日之結餘 添置 轉撥 出售/撤銷 2∞9年6月日之結餘 折舊 2007年7月日之結餘 本年度計算之折舊 Provided 出售/撤銷 2008年6月日之結餘 本年度計算之折舊 Provided for the year訂 出售/撤銷 I 2009年6月日之結餘 賬面淨值 2009年6月日之結餘 2008年6月日之結餘 樓宇 在建工程傢具及設備 progress 大學 大學座落於西資約60公頃之土地，由香港政府按名義租金批出，為期58年，至2047年6月30日。 總計 years through June 以上之物業及設備項目按直線法依照下列年率計算折舊: equipment 訂 樓宇 (家具及設備 每年2% Per annum 每年自25% 12 FINANCIAL ASSETS 2009 2008 $'000 $'000 Consolidated and University Held-to-Maturity Financial Assets Maturing within one year Maturing after one year Consolidated Available-for-Sale cost (Note 2) at market value University fair value (Note 1) at market value Notes ' The unlisted available-for-sale financial assets at fair value were determined by reference to bid prices quoted in active markets or by fund managers. The unlisted available-for-sale financial assets 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. 56 12. 財務資產 綜合及大學 持至到期日財務資產 Maturity 於一年後至5期 161 ,683 綜合 可供出售財務資產 Available Financial Assets 非上市財務資產之公允值(附註1) Unlisted, 959,802 非上市財務資產之成本(附註2) Unlisted, 4EA nun un u 上市財務資產之市值 Listed, 14,057 18,155 887,452 978,957 大學 非上市財務資產之公允值(附註1) Unlisted, 959,802 上市財務資產之市值 Listed, 886,452 財產

INTEREST IN AN ASSOCIATE Unlisted shares, at cost Share of post acquisition profits and net of dividend received Share of net assets Unlisted at cost Business Structure Place of Incorporation I Issued Capital Principal Place Directly Held by Class of Associate of Operation the University Shares Held PKU-HKUST Shenzhen-Hong Liability People's Capital Contribution 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 57 2009 2008 $'000 $'000 Consolidated University Principal Activity To engage in technology commercialization, of start-up provision of other research and technology management of senior management and administrative executives. 2009 2008 於聯營公司權益 非上市投資成本值 shares, 所占收購後溢利，儲備及扣除已收股息 reserves, dividend 所佔淨資產 非上市投資成本值 shares, 聯營公司 擁有權益 業務詮冊地點Proportion of 架構模式 營運地點Nominal Value of 持有股本類別 綜合 大學 主要活動 深港產學研基地 有限責任公司 中華人民共和國 注入資本 致力於科技商業化，培育新 Limited Peop1e's Republic of 公司，提供其他研究和技術 管理服務，培訓高級管理人 員及行政專才。 Capita1 techno1ogy Liabi1ity China commercialization Kong Institution Company 下文教列為聯營公司之財務資料概要: The financia1 be1ow: 總資產 Tota1 總負債 Totalliabi1ities 資產淨值 集團應佔聯營公司之資產淨值 associate 營業額 Turnover 本年度溢利 集團年內應佔聯營公再業績 results incubation companies, research techno1ogy services, training senior Jointly shares, (losses) Name of Entity Sino-foreign joint People's Capital the Group Nature of holds of the Board. under the memorandum and articles and shareholders' agreement of all significant events including mutually classified jointly controlled summarised $'000 $'000 liabilities Note, The University holds, prima facie, a partial interest in Hong Kong R&D Centre for and Supply Chain Management Enabling Technologies Limited ('LSCM'), a company incorporated in Hong Kong, limited by guarantee and not having a share capital. pursuant to the Memorandum and Articles of Association of 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. 58 於合資企業權益 INTEREST IN A JOINT VENTURE 2009 2008 綜合 Consolidated 共同控制實體 Jointly controlled entity 非上市投資成本值 Unlisted shares at cost 所佔收購後(虧損)/溢利及儲備 Share of post-acquisition (losses) / profits and reserves 所佔淨資產 Share of net assets 設冊地點/ 擁有股權 營運地點Proportion of 於董事局之投票權 業務性質 構模式Country of Nominal Value Form of Incorporation 持有股本類別of Issued Percentage of 榮發性質 共同控制實體 Business and Class of Capital Held by Voting Power Nature of structure Operation Shares Held The Group of the Board Business 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51% 60% 促進製造業的研究工作 Zhejiang Advanced Manufacturing Institute of HKUST Sino foreign joínt venture Promotion of manufacturing research Capital contribution People's Republic of China Co. Ltd. ('ZAMI') 集圈持有 ，戶所丹有靈大之事項包括財務及營運之決榮必須得到集圈及其他主耍股東一致決議通過，囡此'集圈把“漸江港科大'歸類為共同控制之實 髓。 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 However, agreement ZAMI, financial and operating policies must be mutually agreed by the Group and the other significant shareholder. Therefore, ZAMI is c1assified as a jointIy control1ed entity of the Group. 合營公司(按集團實際權益計算)的財務資料概述如下: The surnmarised financial information in respect of the Group's jointly controlled entity which is accounted for using the equity method is set out below: 2009 2008 00。00。 流動資產Current assets 非流動資產890 Non-current assets 流動負債Current liabi1ities 收入Income 開支Expenses Note INVESTMENTS IN SUBSIDIARIES Unlisted shares, at cost Subsidiaries Limited HKUST Properties Limited Hong Kong University of Science and HKUST R and D Corporation (Guangzhou) HKUST Rand D Corporation (Shenzhen) Guangzhou HKUST Fok Ying Tung Research Institute The HKUST Shenzhen Research Institute Note,' Place I Country of Hong Kong Hong Kong Hong Kong People's Republic of China People's Republic of University Proportion of Nominal Value of Registered Capital Held by the University Principal Activity Indirect To promote lifelong learning and continuing education. Dormant To engage in technology 100% commercialization including industrial contracting, To engage in basic scientific research, as training of management and personnel. Act as a liaison base to assist the University's education, training, The University holds, prima facie, 100% interest in Nano and Advanced Materials Institute Limited ('NAMI'), a company incorporated in Hong limited by guarantee and not having a share capital. 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. 16. LOAN TO A SUBSIDIARY to a subsidiary is interest-bearing at 5% per annum and is repayable between 2015 and 2024. 59 15. 投資於附屬公司 非上市投資成本值 shares, 附屬公司 香港科技大學持續進修學院有限公司 HKUST College of Lifelong Learning 香港科大地產有限公司 香港科大研究開發有限公司 Technology R and D Corporation Limited 廣州香港科大研究開發有限公司 Limited 港科大研究開發(深圳)有限公司 R and Limited 廣州市香港科大霍英東研究院 香港科技大學深圳研究院 Note 註冊地點/國家 Incorporation 香港 Hong Kong 中華人民共和國大學

擁有股總 Issued 主要活動 Principal Activity 直接待有間攘持有 Direct 100% 推廣持續進修的課程。 100% 不活動 100% 致力於珠江三角洲地區把科技商業 化。包括工業合閥、技術授權、培 育新公司及其它技術服務。 100% including licensing, incubation of start-up companies and other research and technical services in the Pearl River Delta 100% Area. 100% 致力於基本科學的研究，科技的創 新及相關科研活動的推廣，先進科 技人才及管理人員的培訓。 technology innovation and associated research and development activities, as well training advanced technology personnel. 100% 擔任聯絡人，協助科大在內地的教 育、培訓、研究及孕育活動等。 liaison research and incubation activity in Mainland China. 貸款予附屬公司 該筆無擔保貸款按年利率5屋計算利息，並於2015至2024年全數歸還。 Loan unsecured, 5% 2015 2024. Stocks held by Souvenir Shop Consolidated and University

21. Provision for Staff Benefits Stocks of stocks recognised as an expense during the year was ACCOUNTS RECEIVABLE AND PREPAYMENTS Prepayments and Deposits Amount due from UGC Accounts Receivable

Prepayments and Deposits Amount due from UGC Accounts Receivable Allowance for amounts due from subsidiaries Accounts receivable are repayable on demand. 2009 2008 Consolidated University 20,737 0 (32,000) (20,000) Before accepting any new the Group assesses the potential customer's credit quality and defines credit limits by customers. Recoverability of the existing customers is reviewed by the Group regularly. In determining the recoverability of accounts receivable, the Group considers any change in the credit quality of the accounts receivable from the date credit was initially granted up to the financial statements' report date. The accounts receivable past due but not provided for were either subsequently settled as at the date of this report or without historical default of payments by the respective customers. the Council believes that there is no further credit provision required on these accounts receivable as at the balance sheet date. The Group does not hold any collateral over these balances. 60 存貨 STOCKS 綜合及大學 紀念品部之存貨 於年內確認作支出之存貨為388，352元(2008年: 393 ，13l元)。 The amount of stock as at expense 388,352 393,131). 應收眼款及預付款項 ACCOUNTSRECEIVABLEANDPREPAYMENTS 綜合 預付款項及按金 Deposits 教資會應付款項 應收帳款 預口 大學 教資會應付款項 應收眼款 減: 附屬公司應付款項之減值 應收帳款於發出通知後須立即償還。 demand. 在接受新客戶前，本集團會調查其過去信貸資料及按地區性之信貸限額而評估該潛在客戶之借用質素。本集團定 期檢討現有客戶之信貸限額及還款能力。 Before customers, potential customer's quality credit the Group 在衡量應收賠款之還款能力時，集團考慮其由給予借貸日至報告日期聞之借貸質素變化。已過期而無作減值撥備 之應收帳款於本報告日前清付或相關客戶過往並無結欠款項。故此，校董會認為無需就應收眼款作減僱撥備， 本集團並無就該等結餘持有任何抵押。 19. 20. CASH AND CASH EQUIVALENTS ACCOUNTS PAYABLE AND ACCRUALS Consolidated University Consolidated 271,980 0 University

19. 現金及等同現金 原到期日為三個月或以下之定期存款 Bank Deposits with Original Maturity within Three Months 現金及銀行結餘 Cash at Banks and Hand 原到期日為三個月或以下之定期存款 Bank Deposits with Original Maturity within Three Months 現金及銀行結餘 Cash at Banks and in Hand 20. 應付脹款及應計費用 其他應付脹款及應計費用 Other Accounts Payable and Accruals 教資會應收款項 Amount due to UGC 其他應付脹款及應計費用 Other Accounts Payable and Accruals 教資會應收款項 Amount due to UGC 綜合 學謂 大- 綜合 大學 University 21. 21. 教職員福利撥備 PROVISION FOR STAFF BENEFITS 綜合 Consolidated 退職金38,809 35,312 Gratuities 代假期金及其他73,221 73,136 Leave Pay and Others 112,030 108,448 應付於: Payable: 一年內61 ,726 67,025 Within 1 year 一年後50,304 41 ,423 After 1 year 112,030 108,448 大學 University 退職金38,427 34,807 Gratuities 代假期金及其他73,221 73,136 Leave Pay and Others 111,648 107,943 應付於: Payable: 一年內61 ,344 66,520 Within 1 year 一年後50,304 41 ,423 After 1 year 111,648 107,943 62 22. DEFERRED INCOME UGC Subventions and Grants Grants from Government Agencies Donations Sponsorships Total Consolidated income and (Notes 7 and 8) receivable 22. 遞延收益 DEFERRED INCOME 教資會資助及政府有關機構 撥款撥款 Grants from Government 捐款贊助總計 And Grants 綜合 2007年7月1 日之結餘 Balance as at 1 2007 已收/應收之款項 Amount received / receivable 承諾捐款(附註25) Pledged Donations (Note 25) 其他 Others 計入收支報表(附註、7及8) Credited to income and expenditure statement 4, 轉至設備儲備(附設23) Transfers to Capital Reserves (Note 23) 2008年6月30 日之結餘 Balance as at 30 June 2008 已收/應收之款項 Amount received / receivable 承諾捐款(附註25) Pledged Donations (Note 25) 其他 Others 計入收支報表(註、7及8) Credited to income and expenditure statement (Notes 4, 7 and 8) 匯兌差額 Exchange translation difference 轉至設備儲備(附註劫114,505) Transfers to Capital Reserves (Note 23) 2009年6月30日之結餘 Balance as at 30 June 2009 22. INCOME (Cont'd) (Notes 7 and 8) expenditure statement (Notes 7 and 8) Transfers to Capital Reserves (Note 23) Courtesy acknowledgement UGC Subventions and Grants Grants from Government Agencies Donations Sponsorships Total University The amount represented donations received ($6,196,531) receivable ($3,976,609) from the Hong Kong Jockey Club Charities Trust for the University's Enterprise Center and the Student Hostel Phase II Development Project. 64 22. 遞延收益(續) DEFERRED INCOME (Cont'd) 教資會資助及撥款 政府有關機構撥款 Grants from 捐款 贊助 總計 And Grants 大學 2007年月1 日之結餘 Balance as at 1 July 2007 已收/應收之款項 Amount received receivable 承諾捐款(附註25) Pledged Donations (Note 25) 其他 Others 計入收支報表(附詮4 、7及8) Credited to income and expenditure statement 4, 轉入設備儲備(附註23) Transfers to Capital Reserves (Note 23) 2008年6月30 日之結餘 Balance as at 30 June 2008 已收/應收之款項 Amount received I receivable 承諾捐款(附註25) Pledged Donations (Note 25) 註腳) (Footnote) 其他 Others 計入收支報表(附註4 、7及8) Credited to income and expenditure, 轉入設備儲備(附註23) Reserves 2009年30 日之結餘 Balance as at 30 June 2009 Footnote: 23. Balance as at 1 July 2007, restated Transfers from Deferred representing subventions and grants or donations received and receivable during the year for Property and Equipment (Note 22) Transfers to income and expenditure statement representing the depreciation charges on Property and Equipment funded by subventions and grants or and net book value of disposed items Transfers from (to) Donations and UGC Matching Grants Reserves (Note 25) Amounts spent on Property and Equipment during the year Depreciation charges for the year on respective Property and Equipment and net book value of disposed items Transfers from I (to) Other Reserves (Note 26) Amounts spent on Property and Equipment during the year Depreciation charges for the year on respective Property and net book value of disposed items Change in exchange reserve Balance as at 30 June 2008 65 Government Subventions and Grants or Specific Donations $'000 Others Consolidated 2,803,407 Total

設備儲備 CAPITAL RESERVES 2∞7年7 月1 日之重編結餘 Balance 2007, 轉撥自遞延收益，當年為用作購置物業及設備而收取及應收的政府資助及撥款或捐款(附註22) 轉賬至收支報表，即以政府資助及撥款或捐款購置的物業及設備之折舊款項及出售物件之淨值 轉撥自/(至)籌募及教資會配對撥款儲備(附註25) from/ Reserves 購置相關物業及設備支出之款項 有關物業及設備之折舊款項及出售物件之淨值 轉撥自/(至)其他儲備(附設26) 26) 購置相關物業及設備支出之款項 有關物業及設備之折舊款項及出售物件之淨值 Property Equipment value 匯兌儲備之變動差額 2008年6月30日之結餘 物業及設備的資金來源 Property and Equipment Funded by 政府資助及撥款或 指定捐款 其他總計 綜合 CAPITAL RESERVES (Cont'd) Property and Equipment funded by subventions and grants or and net book Reserves 24) Property and Reserves (Note 25) year on respective Note 26)

設備儲備(續) 2∞8年7月1 日之結餘 Balance as at July 轉撥自遞延收益，即當年為用作購置物業及設備而收取及應收的政府資助及撥款或捐款(約註22) Transfers from Deferred Income representing subventions and grants or donations received and receivable during the ye訂Property and 轉R長至收支報表， 以政府資助及撥款或捐款購置的物業及設備之折舊款項或出售物件之淨值 Transfers to income and expenditure statement representing the depreciation charges on donations, value of disposed items 轉撥自/(至)教資會整筆撥款儲備(附註24) Transfers from / (to) UGC Block Grants Reserves (Note 24) 購置相關物業及設備支出之款項 Amounts spent on Property and Equipment during the year 有關物業及設備之折舊款項及出售物件之淨值 Depreciation charges for the year on respective Property Equipment and net book value of disposed items 轉撥自/(至)籌募及教資會配對撥款儲備(附設25) Transfers from / (to) Donations and UGC Matching Grants Reserves 購置棺關物業及設備支出之款項 Amounts spent on Property and Equipment during the year 有關物業及設備之折舊款項及出售物件之淨值 Depreciation charges for the year Property and Equipment and net book value of disposed items 轉撥自I(至)其他儲備(附詮26) Transfers from / (to) Other Reserves (Note 26) 購置相關物業及設備支出之款項 Amounts spent on Property and Equipment during the year 有關物業及設備之折舊款項及出售物件之淨值 Depreciation charges for the y臼r on respective Property and Equipment and net book value of disposed items 匯兌儲備之變動差額 Change in exchange reserve 2∞9年6月30日之結餘 Balance as at June 物業及設備的資金來源 Property and Equipment Funded by 政府資助及撥款或 指定捐款 Government Subventions and Grants or Specific Donations 其他總計 Others Total 綜合 Consolidated 23. CAPITAL RESERVES (Cont'd) Balance as at 1 July restated Transfers from Deferred Income representing subventions and grants or donations received and receivable during the year for 22) Transfers to income and expenditure statement representing the depreciation charges on Property and Equipment funded by subventions and grants or and net book value of disposed items Transfers from / (to) Donations and UGC Matching Grants Reserves (Note 25) Amounts spent on Property and Equipment during the year Depreciation charges for the year on respective Property and net book value of disposed items Transfers from / (to) Other Reserves (Note 26) Amounts spent on Property and Equipment during the year Depreciation charges for the year on respective Property and net book value of disposed items balance as at 30 June 2008 67 Property and Equipment Funded by Government Subventions and Grants or Specific Donations $'000 (127,614) University 設備儲備(續) 2007年7月1 日之重編結餘 2007, 轉撥白遞延收益，即當年為用作購價物業及設備而收取及應收的政府資助及撥款或捐款(附註22) Property and Equipment (Note 轉賬至收支報表，即以政府資助及搜款或捐款購置的物業及設備之折舊款項及出售物件之淨直 Pｒｏｐｅｒｔｙ donations, 轉撥自/(至)籌募及教資會間對撥款儲備(附註25) 購置相關物業及設備支出之款項 位 有關物業及設備之折舊款項及出售物件之淨值 Equipment 草草撥自/ (至)其他儲備(附註26) I 購置相關物業及設備支出之款項 有關物業及設備之折舊款項及出售物件之淨值 Equipment itｅｍs 2008年6月30 日之結餘 物業及設備的資金來源 Eｑuipment 政府資助及撥款或 指定捐款

其他總計 Others Total 23. RESERVES (Cont'd) Transfers Income representing Property and, Transfers representing and Transfers Block Grants (Note 24) and year and Transfers I Grants (Note the year year and value of . Transfers I 26) year year on and and 68 Property and Equipment by Government Subventions and Grants or Specific Donations $'000 119,606 Others $'000 University 設備儲備(續) CAPITAL 2∞8年7 月1 日之結餘 Balance as at 1 July 2008 轉撥自遞延收益，即當年為用作購置物業及設備而收取及應收的政府資助及撥款或捐款(附設22) Transfers from Deferred Income representing subventions and grants or donations received and receivable during the year for Property and Equipment (Note 22) 轉眼至收支報表，即以政府資助及援款或捐款購置的物業及設備之折舊款項或出售物件之淨值 Transfers to income and expenditure statement reprsenting the depreciation charges on Property aud Equipment funded by subventions and grants or donations, net book value of disposed items 轉撥自(至)教資會整筆撥款儲備(附註2仿 Traｎsfers from (to) UGC Bｌｏck Graｎts Reserves 購置相關物業及設備支出之款項 Amounts spent on Property aｎd Equipment during the ye旺 有關物業及設備之折舊款項及出售物件之淨值 Depreciation charges for the year on respective Property aｎd Equipment aｎd net book value of disposed items 轉撥自(至)籌募及教資會配對撥款儲備(的詮25) Traｎsfers from (to) Donations and UGC Matching Graｎts Reserves 購置相關物業及設備支出之款項 Amounts spent on Property and Equipment during the ｙｅａｒ 有關物業及設備之折舊款項及出售物件之淨值 Depreciation charges for the y個r on respective Property and Equipment aud net book Valuｅ of disposed items 轉撥自(至)其他儲備(附註26) Traｎsfers from (to) Other Reserves (Note 26) 購置相關物業及設備支出之款項 Amounts spent on Property and Equipment during the ye缸 有關物業及設備之折舊款項及出售物件之淨值 Depreciation charges for the ye訂on respective Property aｎd Equipment aｎd net book value of disposed items 2∞9年6月日之結餘 Balance as at 30 June 2009 物業及設備的資食來源 Funded 政府資助及撥款或 指定捐款 其他總計 Total 大學 24 Research General and Projects and Development Others Reserve Total Consolidated and University Balance as at 1 July restated (for the year (Reserves (Note 23) Balance as 30 June 2009 69 24. 教資會整筆撥款儲備 UGC BLOCK GRANT RESERVES 研究項目及其他 一般及發展儲備 總計 綜合及大學 2007年月1 日之重編結餘 Balancｅ as 2007, 本年度盈餘/ 虧細) Surplus / (Deficit) for ｔｈｅyear 2008年6月之結餘 Balance as at June 本年度盈餘/(虧細) Surplus / (Deficit) for the year 轉撥至設備儲備(附註23) Transfers to Capital Reserve( Note 2009年6月日之結餘Balance as at 1 July 2007, restated Surplus for the year to Capital Reserves (Note Change in exchange reserve Other inter-fund transfer Balance as at 30 June 2008 Surplus / (Deficit) for the year to Capital Reserves (Note 23) Change in exchange reserve Balance as at 30 June 2009 Balance as at 1 July restated Surplus / (Deficit) for the year Other inter-fund transfer Balance as at 30 June 2008 Surplus / (Deficit) for the year Transfers to Capital Reserves (Note 23) Balance as at 30 June 2009 Endowment Designated Unspecified Consolidated University Total

25. 籌募及教資會配對撥款儲備 DONATIONS AND UGC MATCHING GRANTS RESERVES 留本 指定 非指定 總計 Total 綜合 Consolidated 2007年7 月1 日之重編結餘 2007, 本年度盈餘 year 轉撥至設備儲備(附註23) Transfers Reserves 23) 匯兌儲備之變動差額 Change in exchange 其他資金轉撥 Other 2008年6月日之結餘 本年度盈餘(虧組) 轉撥至設備儲備(附註23) 3 ,952) Transfers 匯兌儲備之變動差額 Change in exchange 其他資金轉撥 Other inter-fund transfer 2009年6月日之結餘 大學 2007年7月1 日之重編結餘 2007, 本年度盈餘(虧絀) 轉撥自I(至)設備儲備(附註23) Transfers from / (to) Capital Reserves (Note 23) 其他資金轉撥O 1,500 (1,500) 2008年6月30 日之結餘444,410 本年度盈餘1(虧絀) 轉撥至設備儲備(如註23) (Note 23) 其他資金轉撥) Other inter-fund transfer 2009年6月日之結餘472,544

25 DONATIONS AND UGC MATCHING GRANTS RESERVES (Cont'd) Further analysis of the Donation and UGC Matching Grants Reserves: Balance as at 1 July restated Income Grants and Donations Income from investments Others Transfers from Capital Reserves (Note 10) Expenditure Teaching and Research Enhancement I Others Academic Strength and Niche Development Internationalization and Student Exchange Activities I Student Development I Scholarship I Bursary Transfers from I (to) Capital Reserves (Note 23) Change in exchange reserve Balance as at 30 June 2008

Income Grants and Donations Income from investments Others Transfers from Capital Reserves (Note 10) Expenditure Teaching and Research Enhancement! Others Academic Strength and Niche Area Development Internationalization and Student Exchange Activities I Student Development I Scholarship I Bursary Transfers from I (to) Capital Reserves (Note 23) Other inter-fund transfer (Note 26) Change in exchange reserve Balance as at 30 June 2009 l§W: Matching Grant Received $'000 510,348 108,461 Donations Qualifying for Matching Other Grant Donations Consolidated 25. 籌募及教資會配對撥款儲備(續) 籌募事及教資會配對撥款儲備之詳細分析: Further Matching Grants 2007年7月1 日之重編結餘 balance Ju1y 2007, 收入 撥款及捐款 Donations 投資收入 其他 轉撥自設備儲備。問設 支出 推進教學及研究/其他 學術強化及特訂領域發展 國際化及學生交流活動/學生發展/獎學金/助學金 轉撥自設備儲備(附註23) 匯兌儲備之變動差額 2∞8年6月日之結餘 收入 撥款及捐款 投資收入 其他 轉撥自設備儲備(附註l仿 支出 推進教學及研究/其他 學街強化及特訂領域發展 國際化及學生交流活動/學生發展/獎學金/助學金 轉撥自I(至)設備儲備(附註23) 其他資金轉摟(附設26) 匯兌儲備之變動差額 2∞9年6月30 日之結餘 符合配對撥款 款資會配對資格之捐款 撥款其他捐款 總計 25 . DONATIONS AND UGC MATCHING GRANTS RESERVES (Cont'd) Further analysis of the Donation and UGC Matching Grants Reserves: Balance as at I July restated Income Grants and Donations Income from investments Others Transfers from Capital Reserves (Note 10) Expenditure Teaching and Research Enhancement I Others Academic Strength and Niche Area Development Internationalization and Student Exchange Activities I Student Development I Scholarship I Bursary Transfers from I (to) Capital Reserves (Note 23) Balance as at 30 June 2008 Income Donations Income from investments Others Transfers from Capital Reserves (Note 10) Expenditure Teaching and Research Enhancement I Others Academic Strength and Niche Area Development Internationalization and Student Exchange Activities I Student Development Scholarship Bursary Transfers from I (to) Capital Reserves (Note 23) Other inter-fund transfer (Note 26)

Balance as at 30 June 2009 Grant Matching Received Qualifying for Matching Other Grant Donations 25. 籌募及教資會配對撥款儲備(續)

籌募及教賣會都對錢款儲備之詳細分析: 2∞7年月1 日之重編結餘 收入 撥款及捐款 投資收入 其他 幣投自設備儲備(的註 支出 推進教學及關 其他 學術強化及特訂領域發展 國際化及康生交流活動/學生發展/獎學金/助學金 轉撥自I(至)設備儲備(附詮23) 2∞ 8年6月30 日之結餘 收入 撥款及捐款 投資收入 其他 轉按自設備儲備(的註l份 支出 推進教學及研究/其他 學衛強化及特訂領悟車發展 國際化及學生交流活動/學生發展/獎學金/助學金 轉撥自I(至)設備儲備(附設23) 其他資金轉撥(的註26) 2∞9年6月30 日之結餘 符合配對撥款 教資會配對資格之謂款 撥款 其他捐款 總計

大學 DONATIONS AND UGC MATCHING GRANTS RESERVES (Cont'd) Information on pledged donation Outstanding amount as at 1 July 2007 Amount received during the year recognized in Income and Expenditure Account (Note 7) Amount received during the year credited to Deferred Income (Note 22) Outstanding amount as at 30 June 2008 Amount received during the year recognized in Income and Expenditure Account (Note 7) to Deferred Income (Note 22) Outstanding amount as at 30 June 2009 Donations for Capital Projects University Other Donations total 470 籌募及教資會配對撥款儲備(續) DONATIONS AND UGC MATCHING GRANTS RESERVES (Cont'd) 承諾捐款之資料 大學 設傭捐款 其他捐款 總計 2007年7月1 日未兌現之款額 在本年度已收之捐款並於收入報表確認(附註7)

在本年度已收之捐款並記入遞延收益服項(附註22) 於2008年6月30 日未兌現之款額 在本年度已收之捐款並於收入報表確認(附註7) 在本年度已收之捐款並記入遞延收益脹項(附註22) Amount received during the year credited 減:不需動用的承諾捐款O Less : Excess pledges not uti1ised 於2009年6月30 日未兌現之款額Consolidated University Balance as at 1 July restated share of Associate inter-fund (Note 25) 26. 其他儲備 OTHER RESERVES 綜合大學 2007年7 月1 日之重編結餘 2007, 本年度盈餘 Surplus for the year 轉撥至設備儲備(附註23) Transfers to Capital Reserves (Note 23) 於聯營公司所佔法定儲備之變動(295) Change in share statutory reserves of an Associate 體兌儲備之變動差額 Change in exchange reserve 2008年月日之結餘 Balance as at 30 June本年度盈餘 Surplus for the year 轉撥至設備儲備(附註23) Transfers to Capital Reserves (Note 23) 其他資金轉撥(附註25) Other inter-fund transfer Note於聯營公司所佔法定儲備之變動 Change in share of statutory reserves of an Associate 匯兌儲備之變動差額(517) Change in exchange reserve 2009年6 月30 日之結餘 Balance as at 30 June 2009 74 All transactions including procurement of goods and services as well as donations involving members of the management personnel in which they may have an interest are conducted during the normal course of operation in accordance with the University's regulations and 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 included disclosed notes In the University and the Group have entered into the following transactions with other related parties:

Subsidiaries Transactions with subsidiaries Program fee paid to subsidiaries Rental paid to subsidiaries Contribution to Subsidiaries (Note) subsidiaries Rental income / occupancy fee charged to subsidiaries Project overhead charged to subsidiaries Loan interest charged to a subsidiary Other expenses recharged to subsidiaries Amounts due from subsidiaries Amount due to a subsidiary 2009 University The University has a loan to a subsidiary which is set out in the balance sheet and terms are set out in note 16. Amounts due from / to subsidiaries are unsecured, non-interest bearing and are repayable on demand. The balances are included in notes 18 and 20 respectively. 75 27. 有關連人士的交易 RELATED PARTY TRANSACTIONS 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機構之探購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、機關或政府單位之間的一切交易，均 被視為與有關連人士的交易。惟政府與大學問因日常業務關係而支付的差齣及費用等交易除外。於年內與有關 連人士的交易大致已包括於附註4及22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: as related party transactions. Significant related party transactions during the year principally included Government Subventions as discussed in notes 4 and 22. addition, entered related parties: (a) 附屬公司 Subsidiaries 與附屬公司之交易 支付予附屬公司之課程費用 Program，paid 支付予附屬公司之租金 Rental 提供予附屬公司之款項(附註) 附屬公司支付之管理費 Management fee charged to subsidiaries 附屬公司支付之租金 subsidiaries 附屬公司支付之項目經常開支 附屬公司支付之貸款利息 附屬公司償還代支之其他費用 附屬公司應付款項 附屬公司應收款項 Amount due to 大學 大學有一筆無擔保貸款予附屬公司，已在資產負債表呈列，其條款則概述於附註16 。 16. 附屬公司應付/應收款項並無揖押，不計利息，於收到知會後須立即償還。此款項己包括在附註18及20之結餘o RELATED PARTY TRANSACTIONS (Cont'd) An Associate (Dividend received from an Associate Transactions with an Associate Rental other fee paid to an Associate Key management personnel compensation Salaries and other short-term employee benefits Post employment benefits 2009 University and University 636 538 In connection with a donation from Fok Ying Tung Foundation; and to extend the research capability of the University to Pearl River Delta, Mainland China, the University's Council has approved the establishment of the HKUST Fok Ying Tung Graduate School (FYTGS) in early 2007. For the activities of the FYTGS in the University has established a the Guangzhou HKUST Fok Ying Tung Research Institute (FYTRI) in Guangzhou. The University contributed the required operating fund to this subsidiary out of the donation of the Fok Ying Tung Foundation. Apart from FYTRI, the University operates a subsidiary in Shenzhen, Mainland China, the HKUST Shenzhen Research Institute (SRI), under the Shenzhen Virtual University Park initiative. Contribution was made out of the University's non-UGC funds to support the operation of SRI. 76 27. 有關連人士的交易(續) 聯營公司 An Associate 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 Rental other 主要管理人員的酬金 Key 薪金及其他短期僱員福利 short-term employee 離職福利 大學 綜合及大學 Consolidated 為將科大的研究強項擴展至內地珠江三角洲，在一項霍英東基金捐款的支持下，校蓋會於2007年初批准成立香 港科大霍英東學院，並為學院在南沙的業務在南沙成立子公再一廣州市香港科大霍英東研究院。科大以霍英東基金捐款為此子公司提供營運資金。除霍英東研究院外，科大在深圳虛擬大學園之下於深圳另設有一問子公再一香港科技大學深圳研究院，其營運資金來自科大非教資會資金。 Consolidated As at 30 the Group had future aggregate minimum lease payments under noncancellable In inclusive In the first year 77 In the second to fifth years inclusive Consolidated Consolidated

28. 承擔 COMMITMENTS (a) 資本承擔 Capital Commitments 以下為街采於財務報表作出準備之資本承擔: Outstanding capital commitments not provided for 由e financial statements were as follows: 已簽約 Contracted for 已獲授權但尚未簽約 Authorised but not contracted for 已簽約 Contracted for 已獲授權但尚未簽約 Authorised but not contracted for 上述於2∞9年6月30日之承擔的資本來源: Funding support for the outstanding capital commitments as at June 獨自大學其他資本之金額 Amounts to be financed by University's Resources 日確認為收入並留存於教資會整筆撥款儲備之金額 Amounts recognized as Income and retained as UGC Block Grant Reserves 將會從其他儲備中分配之金額 Other amounts representing other reserves to be allocated 已收並反映於遞延收益於20ω年6月30 日之金額 Amounts received and reflected as deferred income as at June 教資會已批但未收到之撥款金額 Amounts in respect of UGC Grants approved but not yet received 捐獻者承諾之金額 Amounts pledged by donors 綜合大學 Consolidated University

營運租約之承擔 Operating Lease Commitments 截至6 月30 日止，集團於不可撤銷營運租約之條款下所簽定之日後最低租貨付款合共如 下: June, operating leases as follows: 當年內 1n the first year 第2至第5年內 1n the second to fifth years inc1usive 截至6月30 日止，集團擁有不可總銷營運租貸之日後最低租貸收入合共如下: As at June, the Group had future aggregate minimum lease income under non cancellable operating leases as follows: 首年內 綜合 Consolidated 大學 University 綜合 Consolidated 28. As at 30 June, the University had future aggregate minimum lease payments under non cancellable operating leases as follows: In the first year the second to fifth years inclusive The University leases surplus on-campus accommodations to outsiders at commercial market rent. As at 30 the University had future aggregate minimum lease income under non-cancellable operating leases as follows: In the first year In the second to fifth years inclusive 29 University No taxation is provided as the University is exempt from taxation by virtue of Section 88 of the Inland Revenue Ordinance. 30. Capital risk Management The Group's and the funds consist of Capital Reserves, UOC Block Grant Reserves, Donations and UOC Matching Grants Reserves, Investment Reserve, 23 to 26. It is the future expenditure requirements. The overall 78 承擔(續) COMMITMENTS (Cont'd) (i) 截至六月三十日止，大學於不可撤銷營運租約之條款下所簽定之日後最低租貨付款合共如 下: June, payments non canceIIable follows: 當年內 In first 第2至第5年內 fifth (ii) 大學以市值租金租出校內宿舍予外界，截至六月三十日止，大學擁有不可撤銷營運租賞之 日後最低租貨收入合共如下: campus June, canceIIable foIIows: 當年內 first 第2至第5年內 In fifth inclusive 稅項 TAXATION 大學根據香港稅務條例第88條之規定獲豁免緻付稅項，因此不需作出撥備。 2008

大學 Ordinance. 資本風險管理 CAPITAL RISK MANAGEMENT 集團及大學的資金由設備儲備、教資會筆儲備、籌募及教資會配對且撥款儲備、其他儲備及投資重估儲備組成，該等儲備是為著各樣指定目的而 設立，並詳列於附註23至26內。集團及大學的目標是保持足夠儲備以配合集國及大學現在及將來營運支出需要，集團及大學的整體策略如往年一 般沒有改變。 University's UGC UGC Other Reserves and 1nvestment Revaluation Reserve, which are set up for various designated purposes as described in notes Group's and the University's objective to maintain sufficient reserves to support the Group's and the University's current and fu仙re operating Expenditure Group's and the University's overall strategy remains unchanged from prior year.

FINANCIAL INSTRUMENTS CATEGORIES OF FINANCIAL INSTRUMENTS and Receivables Assets Consolidated University 119,460 31. 金融工具 金融工具分類 財務資產 Financial Assets 貸款及應收款(包括現金及等同現金) Loans and Receivables (including Cash and Cash Equivalents) 可供出售財務資產 Available-for-Sale Financial Assets 持至到期日財務資產 He1d-to-Maturity Financial Assets 財務負債 Financial Liabilities 攤銷成本 Amortised cost 財務資產 Financial Assets 貸款及應收款(包括現金及等同現金) Loans and Receivables (including Cash and Cash Equivalents) 可供出售財務資產 Available-for-Sale Financial Assets 持軍到期日財務資產 Held-to-Maturity Financial Assets 財務負債 Financial Liabilities 攤銷成本 Amortised cost 79 綜合 大學 31. FINANCIAL INSTRUMENTS (Cont'd) FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES the University's financial instruments include accounts receivable, bank investments (including held-to-maturity financial assets disclosed these management monitors these exposures to ensure appropriate measures Price risk The Group and the University are exposed to equity price in equity Foreign currency risk the University are exposed currency States n exchange between In respect of investment and bank balances denominated currencies, currency forward foreign currency contracts to reduce exposure where necessary. 30 % (2008: %). Interest rate risk interest mature within three to six the risk exposure is considered not material. For fixed income investments, strategy the tradeoff benchmark. 80

31. 金融工具(續) 31(b) 財務風險管理自標及政策 本集團及大學之主要金融工具包括應收眼 款、定期付款、投資(包括持至到期及可 快出售資產)、現金及等同現金和應付帳 項。該等金融工具之詳情披露於有關附 註。與這些金融工具相關之風險以及有關 減低該等風險之政策載於下丈。管理層監 管該等風臉，確保能及時和有效採取適當 措施。 價格風險 集團及大學面對之價格風險主要來自基金 經理管理之股票基金投資的入市價風險。 此風險是以資產分配限制來監管。 你虛局在會 集團及大學面對之外幢風險主要來自基金 經理所投資於以美元計值之股票及固定收 益組合。但因美元與港元掛鉤，集團及大 學預期美元與港元揖率變化不大。 而有關以其他外幣計值之投資，則由基金 經理負責監察及管理外幣風險，並在有需 要時訂立遠期外腫合約以減低風險。 於2009年6 月30 日，以港元或美元以外計 值的金融資產值約佔總資產值的問(年為1%) 集團及大學需承受由定期存款及關定收入 投資所崖生的公允值利率風險。國定期存 款通常在三個月至六個月內到期，所以其 風險不高。而固定收益投資方間，基金經 理採用相對價值策略以決定風險及回報之 間的取捨。同時，亦會把組合的投資時段 維持於墓準範圍之內，只容許些微偏差。

31(b) The Group's and the University's major financial receivable， deposits, Assets and available-for-sale financial assets), cash and cash equivalents and accounts payable. Details of these financial instruments are disc10sed in the respective notes. The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. The management manages and these exposures are implemented on a timely and effective manner. University are exposed equity price risk mainly for its investments in equity funds managed by fund managers. This risk is monitored and managed by overall asset allocation. The Group and the University are exposed to foreign currency risks primarily arising from its United Stat的 dollars (“USD') equity and fixed income investments that are managed by fund managers. As USD is pegged to the Hong Kong dollars (“ HKD '), the Group and the University considers risk of movements in exchange rates between the HKD and USD to be insignificant. balances denomínated in other currency， the fund managers monitor and manage foreign currency exposure by entering into exposure where necessary. As at June 2009, the percentage of financial assets denominated in currencies other than HKD and USD to total assets The Group and the University are exposed to fair value interest rate risk in relation to its fixed deposits and fixed income investments. As the fixed deposits usually months, risk exposure income investments， the fund manager employs a relative value strategy to determine the tradeoff between risk and return and monitors the risks by maintaining the portfolio's duration within a narrow band to the benchmark. 31. FINANCIAL INSTRUMENTS (Cont'd) Sensitivity analysis The sensitivity analysis below have been determined based on the Group's and the University's exposure to interest rates for its fixed deposits and fixed income balance sheet interest rates had been basic points higher / lower, with all other variables were held constant: the year ended June 2009 would increase / decrease by approximately million and million respectively million and million). This is mainly attributable to the Group's and the University's to interest rates on its fixed deposits; and revaluation reserve would increase / decrease by approximately million ), mainly as a result of the changes in the fair value of available-for-sale fixed income investments. Credit risk The Group's and the University's principal financial assets are cash and cash bank receivable, held-to-maturity available-to its accounts receivable. The amounts represented in the consolidated balance sheet are net of allowances for doubtful receivables, estimated by the Group's and the University's management based on past experience and their assessment of the current economy. deposits is limited because the counterparties are banks by international credit ratings agencies. All held-to-maturity financial assets and available-for-sale of investment grade and investments are managed by experienced fund managers who are selected and monitored by the Finance Committee. The Group no significant concentration of credit with exposure spread over a of counterparties. 金融工具(續) 敏感度分析 下列敏感度分析是根據集團及大學於結算 日就定期存款及固定收益投資所面對之利 率風險來計算的。 假設其他可變動項目保持不變，倘利率上 升或下跌50個基點: . 集團及大學之2009年6 月30 日止年度 盈餘會因定期存款利率變動而增加/ 減少分別約15，400，000 元及15， 100，000 元(2008 年為的，400，000 元及時，200，000 元) ;及 集團及大學之投資重估儲備亦會因可 共出售固定收入投資之公允個變動而 增加/減少約18，500，000 元(2008 年為 信貸風險 集團及大學之主要財務資產為現金及等同 現金、定期存款、應收眼款、持至到期日 財務資產及其他投資，該等為集團及大學 所承受最大幅度之信貸風險。 集團及大學之借貸風險主要來自應收眼 款。結算日金額為呆脹準備後淨額，由集 團及大學管理層根據過往經驗及經濟現況 作出評估。 國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和定期存款之信 貸風險有限。持至到期日財務資產及可供 出售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。 集團及大學並無過度集中借貸風險，因擁 有多名對手，可分散風險。 31. 81 31. 31. FINANCIAL INSTRUMENTS (Cont'd) Liquidity risk The Council considers that liquidity risk is limited as the liabilities balance sheet the liquidity the Group and the University monitor normal liquidity 31(c) FAIR VALUE liabilities assets are determined with reference to quoted market bid financial liabilities are determined in accordance with models 82 金融工具(續) 流動資金風險 本集團及大學的負債到期日為結算日後半 年內，故此校蓋會認為流動資金風險僅屬 有限。管理流動資金風險方面，本集團及 大學會監察及維持現金及現金等值項目於 管理層視為充足的水平，以應付日常營運 所需，並可減少現金流量波動之影響。 公允值 金融資產及金融負債的公允值之贊定基準 如下: . 符合規條而叉於活躍流通市場買賣之 金融資產的公允值，乃參考市場報價 釐定;及 . 其他金融資產租金融負債的公允值， 乃按貼現現金流量之定價模式或依據 觀察所得之現行市場交易價格釐定。 校蓋會認為，按攤銷成本在綜合財務報表 記眼之金融資產及金融負債的眼面值與其 公允值相若。 considers Group's and the University's liabilities are within six months from respective balance sheet dates. To manage risk, and maintain a level of cash and cash equivalent to fulfill the normal liquidity needs. The fair value of financial assets and financial liabilities are determined as follows: the fair value of financial assets with standard terms and conditions and traded on active liquid markets determined prices; and the fair value of other financial assets and financial liabilities generally accepted pricing mode1s based on discounted cash flow analysis or using prices from observable current market transactions. The Council considers that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial statements approximate their fair value. 32. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS assets and liabilities, the Group and the University make 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 and the University'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 and the University'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 and the University have the intention and ability to hold them until maturity. In to classify a financial asset as held-to-maturity are met, management make significant judgements. Failure in correctly assessing the Group's and the University'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 and the University are based on the evaluation of collectibility and aging analysis of accounts and on management's judgment. A considerable amount of judgment is required in assessing the ultimate realisation of these including the current creditworthiness and the past collection history of each customer. If the financial conditions of customers of the Group and the University were to resulting in an impairment of their ability to make additional allowances may be required. 83 32. 主要會計估計及判斷 在釐定部分資產和負債的眼面金額時， 集團及大學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。集團及 大學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，集團及大學 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 期日的非衍生金融資產，集團及大學如 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。 如果未能對集團及大學是否有意及有能 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 本集團及大學之呆壞賬撥備政策是根據 對收回款項之可能性之評估、提戶之員長 齡分析及管理層之判斷作出。在評估該 等應收款項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。倘本集團及大學客戶之財務狀 況惡化，會損壞其還款能力，因而有可 能需要額外撥備。 In determining the carrying amounts of some liabi1ities, liabi1ities adjustment evaluating whether the requirements held-to-maturity failure ability receivables, deteriorate, payments