Financial Statements for the Year Ended 30 June 2010

Abstract

[evdate 2010-06-30] The Hong Kong University of Science and Technology 香港科技大學 Financial Statements for the year ended 30 June 2010 財務報表截至2010年6月30 日止年度

CONTENTS Notes 目錄 司庫報告.......................................................................................... ........ 1 - 3 Treasurer's Report 獨立核數師報告........................................................................................ 4 - 5 Independent Auditor's Report 綜合全面收益表........................................................................................ 6-7 Consolidated Statement of Comprehensive Income 綜合資產負債表.......................................................................................... 8 - 9 Consolidated Balance Sheet 綜合資金變動表.......................................................................................... 10-11 Consolidated Statement of Changes in Fund Balances 綜合現金流動表.......................................................................................... 12 - 13 Consolidated Statement of Cash Flows 財務報表附註.............................................................................................. 14 - 63 Notes to the Financial Statements

TREASURER'S REPORT OVERVIEW The 2009/10 year ended with a surplus of $420.4 million ($129.6 million for 2008/09). The University benefited from the announcement of the Government's Fifth Matching Grant Scheme (MGS) under which additional donations were raised and the total reached $231.9 million ($67.5 million in 2008/with the matching grant amount to be accounted for and received pending finalization by UGC in the next financial year. Although interest rates remained the recovery in stock markets provided an overall increase in investment and interest returns to $159.6 million ($124.3 million for 2008/09). CONSOLIDATED INCOME AND EXPENDITURE While consolidated income for the year increased to $2,950.1 million ($2,683 million for 2008/09), mainly for the reasons mentioned consolidated expenditure at $million was little changed from prior year ($million for 2008/09). In addition to higher donation income under the MGS and higher investment the growth in consolidated income was attributable to an increase in tuition fees from self-financing continuing education programs. On the expenditure the slight decrease was mainly due to a downward cost of living salary adjustment which was in line with that of the Civil SEGMENT RESULTS University Grants Committee (Grant funded Activities Year 2009/million primarily including Until the UGC's allocation of additional regular recurrent funding for the 4-year Undergraduate (UG) System by the next triennium 2012-2015, it is anticipated that the University will have to draw on the UGC Block Grant Reserves to subsidize the recurrent spending in the remaining two years of the current triennium in order to be prepared for the additional resources required to implement the 4-year UG system. 1 司庫報告 概況: 2009/10年度盈餘為420，400，000元(2008/09年度為 129 ，600，000元) ，受惠於政府第五期教資會配對撥 款計劃成功籌募得額外捐款，總款額達 231 ，900，000元(2008/09年度為67 ，500，000元) ，而其 配對撥款則經教資會確定後，於下個財政年度發 放及入眼。雖然利息偏低，但證券市場的復甦帶 來159，600，000元的投資和利息回報(2008/09年度 為124， 300，000元)。 綜合收入及開支 華於上述原因，年度綜合收入增至2，950， 100，000 元(2008/09年度為2，683月00，000 元) ，而綜合開支 較去年輕微調整至2，530，700，000元(2008/09年度為 2，557 ，400，000元)。 除撥款計劃下籌得理想、的捐款收入及較高的投資 回報外，綜合收入的增幅還來自自負盈虧之持續 進修課程學費的增加。開支方面則跟隨政府公務 員之生活指數薪金調整而輕微下調。 分部結果 教育資助委員會(教資會)整筆撥款資助之活動 2009/10年度為2009-2012三年撥款期的頭一年， 所得盈餘為34，000，000元(2008/09年度為60，000，000 元虧損) ，主要包括國新增研究生而獲得的增補 經常撥款及較高的投資回報。在下個2012-2015 三年撥款期開始四年新學制的新增經常性教資會 撥款之前，預計大學為準備實施四年新學制所需 的額外資源，將動用大學教資會整筆撥款的儲備 來補貼本三年撥款期餘下兩年的開支。

returns, side, Civil Service. UGC) Block 10, the first year of the current triennium 2009-2012, recorded a surplus of $34 million (a deficit of $60 mi1lion for 2008/09) which was primari1y due to an increase in income inc1uding supplementary recurrent grants for additionally allocated postgraduate student numbers and higher investment returns. Unti1

Fund Raising Related Activities 2009/10 $189.7 (82.7 2010. allocated higher-than-normal Self-Financing CPEP, Research and Other Activities $196.7 ($106.9 CAPITAL EXPENDITURE (2010 11. including the Lee Shau Kee Business Building, Institute of Advanced Study (lAS) academic 700

As at 30 June the total commitments for the approved construction projects and other capital items amounted to $million. Of $1,678 million will be supported by approved but yet to be received UGC $113 million by pledged donations and the rest by the Group's reserves and deferred income on hand.

籌募及有關活動 2009/10年度的盈餘多達1 紗，700，000元(2008/09年 度為82，700，000元) ，主要來自2010年6月在政府第 五期教資會配對撥款計劃下所籌得的新增捐款。 該計劃將於2011年3 月結束，大學屆時亦將獲悉 所配對的撥款總額。因此，預期2010/11年度大 學在這方面的盈餘將高於正常水平。 持續進修教育活動,研究活動及其他活動 持續進修教育活動繼續為大學帶來可觀的收入， 加上研究活動的稅後收益、理想的投資回報、為 學生宿舍提供輔助服務的收入及其他活動收入的 增長，這方面的營運為2009/10 年度帶來 196，700，000 元的盈餘2008的9 年度為106，900，000 元)。 資本支出 科大深圳產學研大樓已於2010年8月完工，現正 為正式營運作準備。現有學術大樓的擴建計劃於 2010/11年度完成。其它正在施工的建設項目包 括李兆基商學大樓，科大高等研究院大樓及一座 容納700個學生宿位的新校舍將於四年新學制實 施前完成。大學現正為兩項巴批准之學生宿舍項 目及新增教學及研究設施進行前期計劃工作。 截至2010年6 月30 日，已批准之建築項目及其他 資本項目的資本承擔達2，4 18 ，000，000 元，其中 1 ，678，000，000元來自己獲批准但未收之教資會撥 款， 113 ，000，000元為承諾捐款，其餘來自大學現 有儲備及遞延收益。 Related The surplus for was million for 2008/09). This favourable result was attributable to the additional donations solicited under the Fifth MGS launched in June The MGS will be closed in March 2011 and the total amount of matching grant that can be al10cated to the University will be known at that time. In this regard, it is expected that 2010/11 will see a higher-than-normal surplus for this segment. self-financing CPEP, Research and Other Activities The self-financing Continuing Professional Education Programs (CPEP) continued to contribute sizeable surpluses to the University. Together with net income after tax of research activities, the higher investment return and income from auxiliary services for student and other activities, this operation segment saw a surplus of million for 2009/10 million for 2008/09). Capital Expenditure The HKUST Shenzhen IER Industry, Education and Research) Building was completed in August and is under preparation for occupation. Extension to the existing academic building is targeted for completion within year 2010/11. Other in-progress capital projects IAS) building, and a new hostel with student places are targeted for completion before the implementation of the 4-year Undergraduate (UG) system. Planning work is underway for the two approved joint student hostel projects and additional teaching and research facilities.

The University will continue its strategic investment in order to prepare for the transition to the 4-year UG system in 2012: in addition to the above-mentioned capital building construction the implementation of an integrated Enterprise Resources Planning (ERP) system is targeted to go live in 2011. The University is continuing to hire both faculty and administrative staff to prepare for the transition to 2012. With the arrival of the new Vice-President for Institutional the University will be able to further strengthen its fund raising capabilities to support the University's longer term strategic development. 3 展望 大學將延續為過渡2012年大學四年新學制而制定 的第略開支:除了上述大樓建設工程項目外，全 整合的企業資源計劃ERP) 訊息系統亦計劃於 2011年投入運作。此外，大學將繼續為過渡2012 年而聘請學術及行政人員 隨著新聘副校長(大學拓展)的上任，大學將進一 步強化其籌款能力以支持發展大學的長達策略。 大學司庫 夏理遜- 2010年11 月12 日 OUTLOOK building projects, 201 1. Advancement, will capabilities John B. HARRISON Treasurer of the University 12 November 2010

PricewaterhouseCoopers 22/F, Prince's Building Central, Hong Kong Telephone +852 2289 8888 Facsimile +85228109888 pwchk.com

INDEPENDENT AUDITOR'S REPORT

To: The Council of The Hong Kong University of Science and Technology We have audited the consolidated financial statements of The Hong. Kong University of Science and Technology (the 'University') and its subsidiaries (the 'Group') set out on pages 6 to 63, which comprise the consolidated balance sheet as at 30 June and the consolidated statement of comprehensive income, the consolidated statement of changes iIi fund balances and the consolidated statement of cash flows for. the year then ended, and a summary of significant accounting policies and other explanatory notes. The Council's responsibility for the financial statements The Council of the University is responsible for the preparation and the true and fair presentation of these accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants. This responsibility . includes implementing and maintaining internal control relevant to the preparation and the title and fair presentation of are free from 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 Our responsibility is to express an opinion on these consolidated financial statements based on our audit and to report our opinion solely to as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

羅兵咸永道會計師事務所 PricewaterhouseCoopers 22/F, Prince's Building Central, Hong Kong Telephone +852 2289 8888 Facsimlle +85228109888 pwchk.com 獨立核數師報告書 到DEPENDENT 致:香港科技大學校董會 本核數師(以下簡稱「我們 )已審核列載於第6 至 頁香港科技大學( 大學 )及其附屬公司(以下 合稱「集團 )的綜合財務報表，此綜合財務報表 包括於年月日的綜合資產負債表與截至 該日止年度的綜合全面收益表、綜合資金變動表 和綜合現金流動表，以及主要會計政策概要及其 他附註解釋。 校董會就財務報表須承擔的責任 貴校董會須負責根據香港會計師公會頒佈的香港 財務報告準則編製及真實而公平地列報該等綜合 財務報表。這責任包括設計、實施及維護與編製 及其實而公平地列報財務報表相關的內部控制， 以使財務報表不存在由於欺詐或錯誤而導致的重 大錯誤陳述;選擇和應用適當的會計政策;及按 情況下作出合理的會計估計。 核數師的責任 我們的責任是根據我們的審核對該等綜合財務報 表作出意見，並僅向校蓋會〈作為整體)報告， 除此之外本報告別無其他目的。我們不會就本報 告的內容向任何其他人士負上或承擔任何責任。 4 Council Science together,2010, income, consolidated ,explanatory financial of consolidated financial statements in designing, internal and financial statements that are material

We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. Those standards require that we comply with perform 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 whether due to fraud or error. In internal and fair presentation. in the but not for the purpose of expressing an opinion on the effectiveness of the entity's internal An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the 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. In our the consolidated financial statements give a true and fair view of the state of affairs of the Group as at 30 June 2010 and of its results and cash flows for the year then ended in accordance with Hong' Kong Financial Reporting Standards. PricewaterhouseCoopers Certified Public Accountants HONG KONG 12 November 2010

我們已根據香港會計師公會頒佈的香港審計準則 進行審核。這些準則要求我們遵守道德規範'並 規劃及執行審核，以合理確定此等財務報表是否 不存有任何重大錯誤陳述。 審核涉及執行程序以獲取有關財務報表所載金額 及披露資料的審核憑證。所選定的程序取決於核 數師的判斷，包括評估由於欺詐或錯誤而導致財 務報表存有重大錯誤陳述的風險。在評估該等風 險時，核數師考慮與該集團編製及真實而公平地 列報財務報表相闊的內部控制，以設計適當的審 核程序，但並非為對集團的內部控制的效能發表 意見。審核亦包括評價校董會所採用的會計政策 的合適性及所作出的會計估計的合理性，以及評 價財務報表的整體列報方式。 我們相信，我們所獲得的審核憑證是充足和適當 地為我們的審核意見提供基礎。 意見 我們認為，該等綜合財務報表已根據香港財務報 告準則真實而公平地反映集團於年月日 的事務狀況及截至該日止年度的業績及現金流 量。 羅兵咸永道會計師事務所 執業會計師 香港 年月日 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010 綜合全面收益表 截至2010年6月日止年度 收入 Income 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 轉撥自資本儲備 Transfers from Capital Reserves 開支 Expenditure 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 Institutional Support 管理及一般事務 Management and General 校舍及有關費用 Premises and Re1ated Expenses 學生及一般教育服務 Student and General Education Services 其他活動 Other Activities 本年度營運所得盈餘 Surplus from operation for the year 6 附註 Notes 5 2010

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Cont'd) FOR THE YEAR ENDED 30 JUNE 2010 Surplus for the year before taxation Taxation Surplus for the year after taxation Other comprehensive income for the year Financial Financial Reserve Reserves Total comprehensive income for the year Transfers to 1 (from): Reserves 7

Notes 2010 3,433 (26,489) (249,831) (60,026) 綜合全面收益表(續) 截至2010年6月30 日止年度 所佔共同控制個體的經營業績 Share of Result of a Jointly Controlled Entity 所佔聯營公司的經營業績 Share of Result of an Associate 本年度稅前盈餘 稅項 本年度稅後盈餘 年肉之其他全面放益 於可供出售財務資產末實現之盈利/ (虧損) Unrealised gain / (loss) on Available-for-Sale financial Assets 出售可供出售財務資產時被確認之實現盈利及 轉撥自投資重估儲備 Recognition of gain realised on disposal of Available-for-Sale financial Assets transferred from Investment Revaluation Reserve 轉撥自資本儲備至綜合全面故益表 Transfer from Capital Reserves to consolidated statement of comprehensive 外幣換算之差額 Exchange differences arising from retranslation 於聯營公司所佔法定儲備之變動 Change in share of statutory reserves of an Associate 年內全面收益/(虧制)總額 (loss) 轉撥至/(自) : 資本儲備 Capital Reserves 大學教育資助委員會(教資會)本整筆撥款儲備 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 投資重估儲備 Investment Revaluation Reserve 附註 29 CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2010 Non-Current Assets Property, Plant and Equipment Intangible Assets Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Financial Assets at Fair Value through Profit or Loss Interest in an Associate Interest in a Joint Venture Bank Deposits with Maturity over One Year Current Assets Held-to-Maturity Financial Assets Inventories Accounts Receivable and Prepayments Bank Deposits with Original Maturity over Three Months Cash and Cash Equivalents Current Liabilities Accounts Payable and Accruals Provision for Staff Benefits Deferred Income Tax Payable Net Current Assets Total Assets Less Current Liabilities 8 Notes 12 2010 Council Tony F. CHAN President 23,252 6,927,025 綜合資產負債表(續) 2010年6月日 CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30 JUNE 2010 附註 Notes 2010 2009

非流動負債 Non-Current Liabilities 教職員福利撥備 Provision for Staff Benefits 20 資產淨值 NET ASSETS 資本儲備 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 校董會於2010年月12 日核准本財務報表 Approved by the Counci1 on 12 November 2010 夏理遜 大學司庫 陳繁昌 校長 協理副校長(行政) 及財務處處長 黃世邦

John B. HARRISON Treasurer of the University Philip S.P. WONG Associate Vice-President for Administration and Business Director of Finance 9

Capital UGC Block Grants Other Revaluation Reserves Grant Reserves Reserve Total Funds (Note 23) (Note 24) (Note 25) (Note 26) 2009 Total comprehensive income I for the year 34,011 189,670 196,694 0 420,375 Surplus for the year after taxation (Note 11) Other Comprehensive Income Recognition of gain realised on disposal of Available for Sale Financial Assets transferred to consolidated statement of comprehensive income (144,841) (144,841) of comprehensive income Exchange differences arising from retranslation Change in share of statutory reserves of an Associate Transfer from Deferred fund transfer in connection with capital expenditure Other inter-fund transfer Balance as at 30 June 2010

The fund balances are classified corresponding to the segment categories as shown in the Segment and Expenditure under Note 10 綜合資金變動表 CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES 籌募及教資會 配對撮撥款儲備 教資會整筆撥款 投資重估儲備 資本儲備 儲備 其他儲備 Capital UGC Block Revaluation 資金總和 Total 附註附註24) (付註25) 附設26) Note 2009年7 月1 日之結餘 Balance as at 1 July 2009 年內全面收益(虧絀)總額 Total (loss) 本年度稅後盈餘(的註11) 他全面收直在 於可供出售財務資產末實現之虧損 gain on Available-for-Sale Financial Assets 出售可供出售財務資產時被確認之實現盈利及轉撥至綜全面收益表 轉眼至綜合全面收益表 Transfer to consolidated statement income 外幣換算之差領 於聯營公司所佑法定儲備之變動 statutory 間serves 189,038 21 ,429) 轉j發自遞延收益 Income 與資本儲備有關之資金轉燈88,471 Inter-其他資金轉撥 2010年6月30日之結餘3,494,593 7,409,198 資金給餘是依接分部收支幸臣表肉之歸類，其概述於的詮11 Income 11. CONSOLIDATED STATEMENT OF CHANGES FUND BALANCES (Cont'd) Donations Capital UGC Block Grants Other Revaluation Reserves Grant Reserves Reserves Reserves Reserve Total Funds

(Note 23) (Note 24) 25) Note 26) Balance as at 1 July 2008 Total comprehensive income / (loss) for the year Surplus / (deficit) for the year after taxation (Note 11) Other Comprehensive Income Unrealised loss on Available-for-Sale 1 Recognition of gain realised on disposal of Available for Sale statement of comprehensive income of comprehensive income Exchange differences arising from retranslation of statutory reserves of an Associate fund transfer in connection with capital expenditure 2009 Balance as at 30 June 2009 11 綜合資金變動表(續) CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) 事專募及教資會 自對撥款儲備 教資會整筆撥款 投資重估儲備 資本儲備 儲備其他儲備UGC Block 資金總和 附註23) 的註24) 你註25) 附註26) Note23) 。可ote24) (Note (Note26) 2008年7 月1 日之結餘3,251,755 1,103,671 1,677,520 754,883 139,800 6,927,629 年內全面收益(虧約)總額 本年度稅後盈餘/(虧組)(附註11) 。60,026) 82,669 106,978 129,621 其他全面收益 於可供的售財務資產未贊現之虧損90,059) 90,059) Financial Assets 出售可供出售財務資產時被確認之實現盈利及轉撥至綜合全面收益表 Financial Assets transferred to consolidated 轉至綜合全面收益在表134,682) Transfer to consolidated statement income 外幣換算之差額。49 (517) 於聯營公司所佑法定儲備之變動1,884 Change in share 134,699) 60,026) 82,718 108,345 1 16,548) 120,210) 轉撥自遞廷收益119,606 19,606 Transfer from Deferred Income 與資本儲備有關之資金轉撥87,669 18,676) 3 ,952) 65,041 Inter 其他資金轉撥Other inter-fund transfer 2010年6月30日之結餘3,324,331 1,024,969 1,757,282 797,191 23,252 6,927,025 FLOWS

Consolidated statement of Cash Flows for the year ended 30 June 2010 Cash Flows from Operating Activities disposal Property, Plant Equipment Operating cash low before movement in working capital Receivable Prepayments Payable Accruals Increase in Deferred Net Cash Generated from Operating Activities 2010 $'000 (1,478 (3,433) 2009 $'000 ((3,935) (21,481 綜合現金流動表 截至2010年6月308 止年度 CONSOLIDATED STATEMENT OF CASH FLO羽TS FOR THE YEAR ENDED 30 JUNE 2010 營運活動之現金流量 本年度稅前盈餘 Surplus for the year before taxation 調整: Adjustments for: 折舊及攤銷 Depreciation and Amortisation 壞脹沖銷 Bad debt written off 出售物業、機器及設備之虧損 Loss on disposal of Property， Plant and Equipment 利息及投資收入 Interest and Investment Income 持至到期日財務資產溢價攤銷 Amortisation of premium on Held-to-Maturity Financial Assets 所佔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 轉撥自資本儲備 Transfers from Capital Reserves 存貨之增加 Increase in Inventories 應收眼款及預付款項之增加/減少 (Increase) / Decrease in Accounts Receivable and Prepayments 應付賠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(減少)/增加 (Decrease) / Increase in Provision for Staff Benefits 營運活動淨現金流入 12 Cash Flows from Investing Activities Payment purchase of intangible Assets Three Months Available-far-Assets Interest income received Net Cash Used in Investing Activities Cash Flows from Financing Activities Property Net Cash Generated from Financing Activities Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Year Effect of Foreign Exchange Rate Changes Cash and Cash Equivalents at the End of the Year 2010 $'000 333,464) 18,388) 綜合現金流動表(續) 截至2010年6月30 日止年度 CONSOLIDATED STATEMENT OF CASH FLOWS (Cont'd) FOR THE YEAR ENDED 30 JUNE 2010

投資活動之現金流量 購買物業、機器及設備(333,464) Payment for purchase of Property, Plant and Equipment 購買無形資產(1 8,388) Payment for purchase of Intangible Assets 原到期日超過三個月之定期存款之增加(414,640) Increase in Bank Deposits with Original Maturity over Three months 購買持至到期日財務資產570,125) Purchase of Held-to-Maturity Financial Assets 購買可供出售財務資產 Purchase of Available-for-Sale Financial Assets 購買按公平值透過損益記帳之財務資產886,322) Purchase of Financial Assets at Fair Value Profit or Loss 從持至到期日財務資產所得之贖回收入367,265 Proceeds from redemption of Held-to-Maturity Financial Assets 出售可供出售財務資震之收入884,975 Proceeds from sale of Available-for-Sale Financial Assets 出售物業、機器及設備之收入234 Proceeds from disposal of Property, Plant and Equipment 已收取之利息及投資收入136,883 Interest and investment income巳投資活動淨現金流出833,582) 融資活動之現金流量 用以購買物業、機器及設備之資助及撥款或捐款收入226,211 Subventions and Grants or donations received for purchase of Property， Plant and Equipment 融資活動淨現金流入226,211 現金及等同現金之淨誠少237,054) 年初之現金及等同現食1,560,026 匯兌變動之影響1,292 年終之現金及等同現金1,324,264 NOTES TO THE FINANCIAL STATEMENTS GENERAL INFORMATION The Hong Kong University of Science and Technology IS incorporated under The Hong Kong University of Science and Technology Ordinance (Chapter Laws of Hong Kong). 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 University's subsidiaries are set out in note 31. The registered address and principal place of operation is Clear Water Hong Kong. These financial statements are presented in Hong Kong dollars ('which is the Group's presentation currency. These financial statements have been approved for issue by the Council on 12 November 2010. PRINCIPAL ACCOUNTING POLICIES The principal accounting policies applied in the preparation of the financial statements of the University and its subsidiaries (the 'Group') are as follows: Basis of Preparation The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ('HKFRS') issued by the Hong Kong Institute of Certified Public Accountants (HKICPA). The financial statements have been prepared under the historical cost as modified by the revaluation of Available-for-Sale Financial Assets and Financial Assets at Fair Value through Profit or Loss which are carried at fair value. 1. 2. 2.1 財務報表附註 一般資料 香港科技大學是在香港科技大學條例 香港法例第一一四一章)下成立。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31 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，港元亦為本 集團之呈報貨幣。本大學校董會於 2010年11 月12 日核准此財務報表刊發 主要會計政策 本大學與其附屬公司 集團 於編製 財務報表時所採用之主要會計政策載 列如下: 編制基準 本財務報表乃依據香港會計師公會 ( HKICPA)頒佈之香港財務報告準 則( HKFRS )所編制。 財務報表乃按歷史成本法編制，並對 可供出售財務資產以及按公平值透過 損益記，喂財務資產之公平值重估而作 出修訂。

NOTES TO THE FINANCIAL STATEMENTS 2.1 Basis of Preparation (Cont'd) The preparation of financial statements in conformity with HKFRS requires the use of certain critical accounting estimates It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 4. Adoption of new / revised HKFRS For the year ended 30 June the Group has adopted the following amendments to HKFRS that are effective and relevant to the operations of the Group. HKAS (Revised) HKFRS & HKAS 27 (Amendments) HKFRS 3 (Revised) HKFRS HKAS 27 (Revised) HKAS 39 HKFRSs (Amendments) Presentation of Financial Statements Cost of an investment in a jointly controlled Business combinations Improving disclosures about financial instruments Consolidated and Separate Financial Statements Eligible hedged items HKICP A's Improvements to HKFRSs published in October 2008 The Group has assessed the impact of the adoption of these new standards and amendments and considered that there was no significant impact on the Group's results and financial position nor any substantial changes to the Group's accounting policies and presentation of the financial statements except the of the Consolidated Statement of Comprehensive Income as required under HKAS 1 (Revised) and additional disclosures as required under HKFRS 7 (Amendment) 財務報表附註 編制基準(續) 編輯符合財務準則的財務報表需要使用 若干草要的會計估計，亦需要管理層在 應用集圖會計政策的過程中運用其判斷 力。有關涉及高度的判斷或高度複雜性 的範疇，叉或綜合財務報表中需作重要 假設及估計的範疇，詳見附註4 。 (a) 採納新訂/經修訂香港財務報告準則 截至2010年6月30 日止年度，本集團己採用下列經己生效及會影響本集團營運之香港財務報告準則修訂。 2010, 香港會計準則第1號(修訂 1 香港財務報告準則 第1號及香港會計準則第 27號(修訂) 香港財務報告準則第3號 香港財務報告準則第7號(修訂) (Amendment) 香港會計準則第27號(修言D 香港會計準則第39號(修訂〕 (Amendment) 香港財務報告準則(修訂) 除了採納香港會計準則第1號(修訂)呈列 綜合全面收益表及採納香港財務報告準 則第7號(修訂)的增加披露外，本集團已 評估上述新準則及修訂後之影響，認為 無論對集團之業績及財務狀況或會計政 策及財務報表的呈報，均無任何重大改 變。 財務報表之呈列 附屬公司、共同控制實體或聯營公司之投資成本 業務合併 改善有關金融工具之按露 綜合及獨立財務報表 合資格對沖項自 香港財務報告準則之改進(公佈於2008年月) Amendment).

NOTES TO THE FINANCIAL STATEMENTS Basis of Preparation (Cont'd) Standards, interpretations and amendments published that are not yet effective. The Group has not early adopted the following new and revised amendments, and interpretations which have been issued and are relevant to its operations but are not yet effective, in these financial statements: -

HKFRS HKFRS 1 (Revised) HKFRS 1 (Amendment) HKFRS 2 (Amendment) HKFRS9 HKAS 24 (Revised) HKFRSs Prepayments of a minimum funding requirement HKICPA's Improvements to HKFRSs published in May 2009 First-time adoption of Financial Reporting Standards Additional exemptions for first-time adopters Group cash-settled share-based payment transactions Financial Instruments Related Party Disclosures Instruments HKICPA's Improvements to HKFRSs published in May 20103 Management is currently assessing the impact of the above new standards, amendments and interpretations on the Group's financial statements and is not yet in a position to state whether there will be substantial changes in accounting policies and presentation of the financial statements. 16 財務報表附註 2.1 編制基準(續) 2.1 (b) 已公佈但未生效的準則、詮釋和修訂。 本集團於此財務報表並無提早應用以下巴頒佈但尚未生效，並與運作有關之新訂及經修訂準則、修訂或詮釋。 巳香港(國際財務報告詮釋委員會) IFRIC) (Amendments) 香港財務報告準則 (Amendments) 香港財務報告準則第1號(修訂) 香港財務報告準則第1號(修訂) 香港財務報告準則第2號(修訂) HKFRS2 香港財務報告準則9 香港會計準則24 香港(國際財務報告詮釋委員會)一詮釋19 IFRIC)-香港財務報告準則 (Amendment) 最低提存資金要求的預付金 香港財務報告準則2009之改善(公佈於2009年5 月)1 首次採用香港財務報告準則2 額外豁免予首次採用者2 集團以股份為基礎的付款交易I 金融工具4 關聯方按露3 以股本工具消除金融負債2 Extinguishing Financial Liabilities with Equity 香港財務報告準則2010之改善(公佈於2010年5月)3 管理層現正就以上新公佈之準則、修訂及詮釋對本集團之影響作出評估，但尚未能說明會計政策及財務報表之 列會否出現重大變動。 2.1 (d) 2.2 NOTES TO THE FINANCIAL STATEMENTS 2.1 Basis of Preparation (Cont'd) Effective for accounting periods beginning on or after 1 January 2010. Effective for accounting periods beginning on or after 1 July 2010. Effective for accounting periods beginning on or after 1 January 2011. Effective for accounting periods beginning on or after 1 January 2013. 2.2 17 Financial statements for the University have been prepared separately. Change in accounting policy Income from research contracts is recognised on a percentage of completion basis. With effect from 1 July 2009 for contracts where percentage of completion of the respective research projects cannot be reliably estimated project income is recognised to the extent of the expenses incurred that are recoverable by reference to the accounting policy set out in note 2.6. Management believes that research contract income will be recognised in a more appropriate manner under this policy. Adoption of the aforementioned accounting policy has. no material impact on the Group's financial and no adjustment to the prior year's figures is required. Basis of Consolidation The consolidated financial statements include the financial statements of the University and entities controlled by the University made up to 30 June each year. Subsidiaries are those entities in which the University, directly and controls the composition of the board of directors; controls more than one half of the voting power; has the power to govern the financial and operating policies; has the power to appoint or remove the majority of the members of the board of directors; or has the power to cast a majority of votes at the meetings of the board of directors. The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition or up to the effective date of as appropriate. (c) 財務報表附詮 編制基準(續) 於2010年1 月1 日或以後開展之年度期間生效。 於2010年7 月1 日或以後開展之年度期間生效。 於2011年1 月1 日或以後開展之年度期間生效。 於2013年1 月1 日或以後開展之年度期間生效。 大學之財務報表已另外編制。 會計政策之改變 研究合同的收益在按完成百分比確認入 脹。自2009年7 月日開始，當研究項目 的完成百分比不能被準確預測，則依據 會計政策附註2.6所述，收益將以已產 生而可收回的開支確認入脹。管理層相 信此項政策更能恰當地把研究合同收益 處理入脹。 鑒於以上會計政策對集團財務報表影響 不大，不需調整往年的數據。 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。 附屬公司是指本大學直接或間接控制董 事會的組合、控制其超過半數投票權、 有管治其財務及營運政策權、有委任或 撤換其董事會大部分成員權力，或f占其 董事會會議大多數投票權之公司。 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 期止計入綜合全面收益表。 (c) 2.2 2.3 2.4 2.5 Basis of Consolidation (Cont'd) Where adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All significant intercompany transactions and balances within the group are eliminated on consolidation. Segment Reporting In order to present a clearer picture of the financial results of the Group's operations, segment reporting is presented showing the major sources of income for the Group and the expenditure incurred in relation thereto. This is a voluntary disclosure and the requirements of HKFRS 8 are not applicable. 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. 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. Umealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates. Umealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. 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 that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. 18 2.4 2.5 財務報表附註 綜合基準(續) 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 脹內抵銷。 分部報告 集團採用分部報告顯示主要收入來源及 相關的開支，以更加清晰顯示運作之財 務結果。此分部報告乃自願性按露，香 港財務報告準則第8號之要求並不適 用。 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，而該機構叉不屬於集團 之附屬公司或於合資企業權益。 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脹。 本集聞與其聯營公司之間交易的未實現 收益按集團在聯營公司權益的數額對 銷。除非交易提供所轉讓資產減值之憑 證'否則末實現虧損亦予以對銷。聯營 公司的會計政策已按需要作出改變，以 確保與本集團採用的政策符合一致。 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，凡政黨決 定涉及財務及營運上之策略，必須合資 各方決議一致通過。 2.5 2.6 NOTES TO THE FINANCIAL STATEMENTS 2.5 2.6 19 Interest in a Joint Venture (Cont'd) 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 entity, less any impairment loss. When the share of losses of the Group in a joint venture equals or exceeds its interest in the joint venture, the group does not recognise futher losses, unless it has incurred obligations or made payments on behalf of the joint venture. Unrealised gains on transactions between the Group and its joint venture are eliminated to the extent of the Group's interest in the joint venture. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint venture have been changed where necessary to ensure consistency with the policies adopted by the Group. Recognition of 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: in respect of the recurrent block grant: all other than those intended for capital expenditure, received in respect of the year are transferred to the consolidated statement of comprehensive income as the conditions relating to the unspent amounts are unless the accumulated surpluses from block grants exceeded the maximum limit permitted by UGC. In that event, the transfer to the consolidated statement of comprehensive income will be reduced by any amount refundable to the government. in respect of subventions and grants or donations intended for other expenditure: amounts equivalent to the expenditure incurred during the year are transferred to the consolidated statement of comprehensive income. 財務報表附註 於合資企業權益(續) 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。共同控制賞體權益按成本值 列入綜合資產負債表，其後會就收購後 集闡應佔共同控制實體之淨資產扣除所 屬投資減值虧損入脹。如本集團應佔合 資企業之虧損等於或超過其在該合資企 業之權益，本集團不會確認進一步虧損 ，除非本集闢己代合資企業承擔責任或 作出付款。 本集團與其公司之間交易的末實現收益 按集團在合資企業權益的數額對銷。除 非交易提供所轉讓資產減值之憑證'否 則末實現虧損亦予以對銷。合資企業的 會計政策已按需要作出改變，以確保與 本集團採用的政策符合一致。 收入確認 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 延收益脹項，然後再由遞延收益脹項依 從以下方式轉撥: 經常整筆撥款:除準備用作資本 出外，在符合有關未使用撥款 之條件下，所有當年已收取的撥 款將轉至綜合全面收益表內，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，轉至綜合全面收益表的數額 將扣除需退還政府的數額。 用作其他開支的資助及撥款或捐 款:等同年內已產生開支之款額 會轉豆豆綜合全面收益表內。 2.6 2.7 7 Recognition of Income (Cont'd) in respect of subventions and grants or donations intended for capital expenditure: amounts incurred in relation to capital expenditure on related plant and equipment as well as intangible assets are transferred to the Capital Reserves. Subsequently, each an amount equivalent to the depreciation charges of the related property, plant and equipment, amortisation charges of the intangible assets and net book value of disposed items are transferred from the Capital Reserves to the consolidated statement of comprehensive income. Other grants and donations are recognised as income when received or receivable. Outstanding pledges are not recognised as where the University does not have the ability to enforce a pledged the donation is recognised when received. Tuition fees, auxiliary services and rental income are recognised when services are provided. Interest income from a financial asset is accrued on a time by reference to the principal outstanding and at the interest rate 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 whose outcome can be reliably estimated, is recognised based on the percentage of completion. Where the outcome of the contract research projects cannot be reliably estimated, project income is recognised to the extent of the expenses incurred that are expected to be recoverable until the completion of projects when the uncertainties that prevent reliable estimation of the outcome of the projects no longer exist. Licencing income is recognised upon assignment of the licence / patent or on a straight line basis over the period of the licence / patent granted. Property, Plant and Equipment Property, plant and equipment, other than construction in progress, are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation of property, plant and equipment, other than construction in is calculated using the straight-line method to allocate their costs to the residual values over the estimated useful lives. Full year depreciation is charged for property, plant and equipment in the year when it is ready for use. 20 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 收入確認(續) 用作資本開支的資助及撥款或捐 款:運用於有關物業、機器及設 備及無形資產之資本性開支的款 項會轉至資本儲備接內。隨後， 等間有關物業、機器及設備的每 年折舊費及無形資產的攤銷費及 出售物件之淨值會由資本儲備轉 入綜合全面收益表內。 其他撥款及捐款在收取或應收時確認為 收入。未兌現之承諾捐款不會確認為收 入，大學未能指令執行之承諾捐獻，在 收到捐款後才確認入眶。 學費、輔助服務及租金收入概於完成服 務後確認入脹。 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眼白淨值之 利率。 當研究合約的結果可被準確預測，其收 益將基於已完成的百分比確認入眼;當 其結果不能被準確預測，直至在項目完 成及當阻礙準確預測項目結果的不確定 因素不再存在前，其收益在將按已發生而 預期可收凹的支出數額確認入脹。特許 權收入則在簽署特許權/專利時或在特 許權/專利生效期間以直總法計算確認 入賬。 物業、機器及設備 除在建工程外，物業、機器及設備按成 本值滅累積折舊及累積減值後入眠。 除在建工程外，扣除剩餘估值後，物 業、機器及設備按估計可使用年期以直 線法計算折舊。物業、機器及設備於備 用年度內計算全年折舊。 2.7 2.8 2.9 NOTES TO THE FINANCIAL STATEMENTS 2.7 2.8 2.9 21 Property, Plant and Equipment (Cont'd) 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, plant 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 consolidated statement of comprehensive income. Intangible Assets Computer software costs are capitalised on the basis of the costs incurred to acquire and bring to use the specific software and are stated in the consolidated balance sheet at cost less accumulated amortisation. Amortisation of computer software is charged to the consolidated statement of comprehensive income on a straight line basis over the assets' estimated useful lives. Full year amortisation is charged for computer software in the year when it is ready for use. Capital Reserves Property plant and equipment as well as intangible assets are financed by the Capital Reserves which are made up of two components. Items funded by Government subventions and grants or specific donations as stated in paragraph 2.6 above. Items funded by other funding sources. Amounts equivalent to the expenditure on plant and equipment or intangible assets are transferred out of the retained balances of respective reserves to the Capital Reserves. each an amount equivalent to the depreciation charges for the related plant and amortisation charges for the intangible assets and net book value of disposed items are transferred back from the Capital Reserves to the respective reserves. 財務報表附註 物業、機器及設備(續) 在建工程按成本值減去任何巳確認之減 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、機器及設備分類。 物業、機器及設備項目會在出售後或預 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 所得收入與資產眼面值的是額，於綜合 全面收益表確認為收益或虧損。 無形資產 所購入軟件之成本按購入及使用該特定 軟件所產生的成本為基準資本化，並按 成本減累計攤銷於綜合資產負債表列 眠。 電腦軟件之攤銷乃以直線法按資產估計 可使用年期於綜合全面收攏表中扣除。 電腦軟件於備用年度內計算全年攤銷。 資本儲備 包含在資本儲備的物業、機器及設備及 無形資產主要分為兩部份。 以政府資助及撥款或特定捐款購 囂的項目如附註2.6所述。 而由其他款項購糧的項目，等同 其物業、機器及設備或無形資產 的成本，將自其所屬的滾存儲備 轉撥至資本儲備。隨後，等同於 該物業、機器及設備的折舊費、 無形資產的攤銷費及出售物件之 淨值會由資本儲備按年轉撥回所 屬的儲備。 Financial Assets The Group classifies its financial assets in the following Categories loans and receivables, held-to-maturity investments, financial assets at fair value through profit or loss and available-for-sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date. (a) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date, which are classified as non-current assets. Bank deposits are treated as loans and receivables and are disclosed as bank deposits or cash and cash equivalent. 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 financial liabilities, or, where appropriate, a shorter period. Interest income and interest expense are recognized on an effective interest basis (b) Held-to-maturity investments Held-to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities where the Group has the positive intention and ability to hold to maturity. They are included in non-current assets unless management intends to dispose of the investments within 12 months of the balance sheet date. 22 12 財務報表附註 2.10 財務資產 本集團將其財務資產投資分頡如下:貸 款及應收款、持至到期日投資、按公平 值透過損益記眠之財務資產及可供出售 財務資產。分類方式視乎購入投資目的 而定。管理層在初步確認時釐定其投資 的分類，並於每個報告日期重新評估有 關指定。 (a) 貸款及應收款 貸款及應收款為有固定或可釐定 付款且沒有在活躍市場上報價的 非衍生財務資產。此等款項包括 在流動資產內，但到期日由結算 日起計超過12個月者，則分類為 非流動資產。銀行存款視作貸款 及應收款項處理，以銀行存款或 現金及等同現金項目名義列眶。 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間 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。 (b) 持至到期日投資 持至到期日為有固定或可釐定付 款以及回定到期日的非衍生財務 資產，而集團有明確意向及能力 持有至到期日。除非管理層有意 在結算日後12個月內出售該項 投資，否則此等資產列在非流動資 產內。 2.10 Financial Assets 2.10 NOTES TO THE FINANCIAL STATEMENTS 2.10 23 Assets (Cont'd) (b) Held-to-maturity investments (Cont'd) At subsequent reporting dates, debt securities that the Group has the intention and ability to hold to maturity (held-to-maturity debt securities) are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect irrecoverable amounts. An impairment loss is recognised in the consolidated statement of comprehensive income when there is evidence 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 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. (c) Financial assets at fair value through profit or loss This category comprises financial assets designated at fair value through profit or loss at inception. Assets in this category include listed and unlisted securities and debt securities. At the end of the reporting period subsequent to initial recognition, these financial assets are carried at fair value. Gains and losses arising from changes in fair value are recognised in the consolidated statement of comprehensive income. (d) Available-for-sale financial assets Available-for-sale financial assets are non derivatives that are either designated in this category or not classified under other financial assets categories. They are included in noncurrent assets unless management intends to dispose of the investments within 12 months of the balance sheet date. 財務報表附註 財務資產(續) (b) 持至到期日投資 於其後報表日，集團計劃及有能 力持至到期日的債務證券(持至到 期日的債務證券) ，是按攤銷成本 以實際利率法釐定，減去減值虧 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 於綜合全面收益表中確認。獲確 認之減值乃根據投資之騷面金額 與按於初步確認、時計算之實際利 率折算之估計未來現金流量現值 之間的差額而釐定。如其後出現 已確認減值之投資可收回升值金 額，則將予以自撥，惟回撥後之 脹面金額不能多於此減值虧損之 前已確認攤銷之成本值。 (c) 按公平值透過損益記賬之財務資產 此類別為開始時指定按公平值透 過損益記眼之財務資產，包括上 市及非上市證券。在首次確認後 之每個結算日，此等金融資產按 公平價值列脹。而其因公允值變 動引致的收益或虧損列入當期之 綜合全面收益表中。 (d) 可供出售財務資產 可供出售財務資產為被指定為此 類別或並無分額為任何其他財務 資產類別的非衍生工具。除非管 理層有意在結算日後12個月內出 售該項投資，否則此等資產列在 非流動資產內。 NOTES TO THE FINANCIAL STATEMENTS 2.10 Financial Assets (Cont'd) Purchases and sales of investments are recognised on the trade-date - the date on which the Group commits to purchase or sell the financial assets. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the consolidated statement of comprehensive income. All other financial assets are initially recognised at fair value plus transaction costs. Available-for-sale assets subsequently carried at fair value. Unrealised gains and losses arising from changes in the fair value of available-for-sale financial assets are recognised in equity. When investments classified as available-for-sale are sold or the accumulated fair value adjustments are included in the consolidated statement of comprehensive income as gains and losses from investment. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available-for-a significant or prolonged decline in the fair value of the security below its cost is considered an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, as the difference between the acquisition cost and the current fair less any impairment loss on that financial assets previously recognised in the consolidated statement of comprehensive income - is removed from equity and recognised in the consolidated statement of comprehensive income. Impairment losses recognised in the consolidated statement of comprehensive income on equity instruments are not reversed through the consolidated statement of comprehensive income. Accounts receivable Accounts receivable are recognised initially at fair value and subsequently measured at amortised cost using the effective interest less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash discounted at the effective interest rate. Accounts receivable in the balance sheet are stated net of such provision. 24 財務報表附註 財務資產(續) 買賣投資於交易日確認一交易日指本 集團承諾買賣該資產之日期。按公平值 計入損益脹的財務資產初步按公平值確 認，而交易費用則在綜合全面收益表支 銷。所有其他財務資產初步按公平值加 交易費用確認。出售財務資產及按公平 值計入損益脹的財務資產其後按公平值 列脹。 可供出售財務資產之公平值變動產生之 未變現盈虧，於權盤中確認。倘分類為 可供出售之證券售出或減值時，累計公 平值調整列入綜合全面收益表作為投資 證券的盈虧。 本集圈在每個結算日評估是否有客觀證 撮證明某項財務資產或某組財務資產經 已減值。對於分類為可供出售的股權證 券，在釐定證券是否日經減值時，會考 慮證券公平值有否大幅或長期跌至低於 其成本值。若可供出售財務資產存在此 等證據，累計虧損一計算為購買成本 與當時公平值的差額減去該財務資產之 前在綜合全面收益表確認的任何減值虧 損一從自權益中剔除並在綜合全面收 盤表記帳。在綜合全面收益表確認的股 權工具減值虧損不會透過綜合全面收益 表撥回。 2.11 應收賬款 應收賬款初步以公平值確認，其後使用 實際利息法按攤銷成本，並扣除減值撥 備計暈。當有客觀證撮證明本集團未能 按應收款的原有條款收回所有款環時， 即就應收款設定減值撥備。撥備金額為 資產脹面值與按實際利率貼現的估計未 來現金流量的現值兩者的差額。資產負 債表內之應收賠款為扣除該等撥備後列 賬。 2.13 2.15 2.12 2.13 2.14 2.15 2.16 Accounts payable and accruals and deferred income Accounts payable and accruals and deferred income are Initially measured at fair value , and are subsequently Measured at amortised cost, using the effective interest rate method.

Cash and cash equivalents Cash and cash equivalents comprise cash on hand and deposits available on demand with an original maturity of three months or less.

Provisions Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. Provisions are measured at management's best estimate of the expenditure required to settle the obligation at the balance sheet and are discounted to present value where the effect is material

Inventories Inventories held for resale in respect of self-financing operations are valued at the lower of cost and net realisable value. Cost is calculated using the weighted average method.

Impairment

At each balance sheet the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised in the consolidated statement of comprehensive income immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable such that the amount such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

財務報表附詮 NOTES TO THE FINANCIAL STATEMENTS 2.12 應付賠款及應計費用及遞延收益 應付賬款及應計費用及遞延收益初步按 公平值計算，日後按使用實際利率法計 算的已攤銷成本列賬。 現金及等同現金 現金及等同現金包括存於銀行之手頭現 金及原到期日為三個月或以下之活期存 款 2.14 撥備 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，集團需要接 備確認負債。撥備款額由管理層於結算 日對責任所需作出最適當估計。倘屬重 大影響，以貼現現值計算。 存貨 自籌資金業務持作轉售之存貨按成本或 可變現淨值兩者較低者入脹。成本以加 權平均法計算。 2.16 減值 在每年結算日，集團會審查資產的眼面 值，確定資產有沒有出現減值虧損跡 象。若估計資產的可收回金額較脹面值 為低，則須將脹面值調低至可收回金 額。而所產生的減值會即時確認在綜合 全面收益表。 倘若所作出的減值虧損於其後回撥，資 產的眼面值會調高至重佑的可收回金額 ，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眼面值。所 回撥的減值虧損會即時確認為收入。 (a) (b) 2.18 NOTES TO THE FINANCIAL STATEMENTS (a) (b) straight-over leases comprehensive income received incentive operating statement employees rendered service of each the measured economic presented the exchange dates resulting from assets denominated are recognised income. results currency from presentation the presentation the closing 26 財務報表附註 2.17 營運租約 集團為出租者 來自營運租約的租金收入在有關租約年 期內按官線基準確認 集團為承租者 根據營運租約應付之租金以直線基準按 有關租約之年期於綜合全面收益表內列 脹。作為訂立營運租約誘因之己收及應 收利益，亦按直線基準於有關租約年期 分攤。 退休福利開支 為界定供款退休計劃所支付之款項，於 僱員作出供款所須之服務後列入綜合全 面收益表。 2.19 外幣 本集團各實體的眼目內所包括的項目， 乃按該實體經營所在的主要經濟環境的 貨幣(功能貨幣)計算。本綜合眼目以港 幣呈列，而本集團的呈報貨幣均為港 幣。 外幣交易乃按交易當日的現行腫率換算 為功能貨幣。國上述交易結算而產生的 龐兌損益，以及因按年終匯率兌換以外 幣列值的貨幣資產及負債而產生的匯兌 損益，一概於綜合全面收益表內確認。 所有功能貨幣與里報貨幣不一的集團實 體(各實體均無極高通脹經濟地區的貨 幣) ，其業績及財務狀況均以下列方式 換算為呈報貨幣: 於各結算日在各資產負債表內呈列的資 產及負債均按該結算日的收市匯率換 算。 2.17 Operating Leases The Group as lessor Rental income from operating leases is recognised on a straight -line basis over the term of the relevant lease. The Group as lessee Rentals payable under operating leases are charged to the consolidated statement of comprehensive income 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. 2.18 Retirement Benefits Costs Payments to defined contribution retirement benefit plans are recognised in the consolidated statement of comprehensive income when employees have rendered service entitling them to the contribution. 2.19 Foreign Currencies Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated financial statements are presented in Hong Kong dollars, which is the Group's presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resu1ting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are in the consolidated statement of comprehensive income. The results and financial position of all Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: Assets and liabilities for each balance sheet presented are translated at the rate at the date of that balance sheet. 2.19 27 Foreign Currencies (Cont'd) Income and expenditure for each statement of comprehensive income are translated at average exchange rates (unless this average is not a reasonable of the cumulative effect of the rates prevailing on the transaction in which case income and rates at of the transactions); and all resulting exchange differences are recognised as a separate component of equity. 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 2.19 外幣(續) 各收支結算表內的收入及開支均按平均 匯率換算(除非該平均匯率並非交易當 日現行匯率累計影響的合理估計，遇有 這種情況，收入及開支概於交易當日的 匯率換算) ;及所有因此而產生的歷兌 差額確認為個別組成部分之權益。

NOTES TO THE FINANCIAL STATEMENTS

FINANCIAL RISK MANAGEMENT FINANCIAL RISK FACTORS The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, the impact financial markets and seeks to minimise potential adverse effects on the Group's financial performance. The Finance Committee assumes the risk management responsibility and monitors regularly the risk exposures of the Group. 3.1(a) Market risk 28 (i) Market risk represents the risk that the value of financial assets will decrease as a result of movements in market variables such as foreign currency interest rates and stock prices. The Group is exposed to market risk mainly through the investment funds it holds. The Group's investments comprise debt investment funds and time deposits. The investment principle of the Group is to invest prudently in order to preserve capital and achieve optimal risk diversification while generating a stable return and the required liquidity. The Group employs reputable third party investment managers to manage a proportion of its and delegates the Finance Office of the University to manage time held-to-maturity debt securities and structured fixed income instruments. Foreign currency risk The Group is exposed to foreign currency risks primarily arising from its United States dollars ('USD') denominated fixed income investments and real assets that are managed by fund managers. As USD is pegged to the Hong Kong dollars ('the Group considers the risk from movements in exchange rates between the HKD and USD to be insignificant. Since currency movements tend to have a much smaller impact on portfolio performance in the long no hedging for non-USD exposure will be arranged under normal circumstances. Such currency exposure management policy is subject to periodic review and hedging may be arranged when situation warrants. As at 30 June the percentage of financial assets denominated in currencies other than HKD and USD to total financial assets was 財務報表附註 3. 財務風險管理 3.1 財務風險因素 集團活動承受各種財務風險:如市場風險(包括外匯風 險、利率風臉及價格風險)、信貸風險及流動資金風 險。集團風險管理著重於控制囡財務市場的不能預計 因素而引起的影響及嘗試對本集團財務表現的可能負 面影響減至最低。財務委員會有肩負風險管理責任及 定期監察集團需面對的風險。 3.1(a) 市場風險市場風險是因匯率、利率及股票價格等市場變數出現 變動而引致財務資產出現虧損的風險。本集團承受的 市場風險主要來自其持有的投資資金。本集團的投資 包括股本證券、債券、投資基金及定期存款。本集團 的投資原則是以審慎的投資保障本金及實現適當分散 風險，同時取得所需的回報及流動資金。本集團從外 委聘具規模的投資經理管理部分投資，也授權財務處 管理定期存款、持至到期日債券及結構性定息工具。 外匯風險 集團面對之外匯風險主要來自基金經理管理之美元計 值股票、固定收益及實物資產的組合。但因美元與港 元掛鉤，集團預期美元與港元匯率變化不大。 期長遠而言貨幣波動對基金組合表現的影響不大， 正常情況下不會安排非美元貨幣的對沖。我們將會定 期對現有的貨幣風險管環政策進行檢討，必要時或會 進行對沖安排。 於2010年6月30 日，以港元或美元以外計值的金融資產 值約佔總金融資產值的0.1%(2009年為1%) 。

P.29 3. 3.1 NOTES TO THE FINANCIAL STATEMENTS FINANCIAL RISK MANAGEMENT (Cont'd) FINANCIAL RISK FACTORS (Cont'd) Interest rate risk 3. 3.1 (ii) The Group is exposed to fair value interest rate risk in relation to its fixed deposits. As the fixed deposits usually mature within three to six months, the risk exposure is considered not material. If interest rates had been 50 basis points higher / lower， with all other variables held constant, the Group’s surplus for the year ended 30 June 2010 would increase/decrease by approximately $16.3 million This is mainly attributable to the University's exposure to interest rates on its fixed deposits.

Price risk

The Group is mainly exposed to securities price risk from its investments managed by fund managers. Securities price risk is managed by diversification of investments through asset al1ocation limits for different markets, sectors and assets types . At 30 june 2010 if the prices of the respective investments had been 5% lower, with all other variables held constant, Group's surplus for the year would have increased /decreased by approximately million). The Group's principal financial assets are cash and Cash equivalents bank deposits ，accounts receivable， held-to-maturity financial assets, available-for-sale financial assets and financial assets at fair value through profit or loss which represent the Group's maximum exposure to credit risk in relation to financial assets. The Group's credit risk is primari1y attributable to its accounts receivable. The amounts represented in the consolidated balance sheet are net of allowances for doubtful receivable estimated by the Group's management based on past experience and their assessment of the current economy. (interest deposits usually 50 lower, all variables held the Group's surplus for the year 30 2010 decrease $16.3 (2009: $15.4 exposure interest Price risk allocation sectors and assets types. At 30 June if the prices investments higher / with all other variables held the $44.3 (2009: $44.3 3.1(b) Credit risk 29 財務報表附詮 3. 財務風險管理(續) 3.1 財務風險因素(續) 利率風險 集團需承受由定期存款所產生的公平值利率風險。因 定期存款通常在三個月至六個月內到期，所以其風險 不高。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，集團之2010年6月日止年度盈餘會因 定期存款利率變動而增加/減少約16，300，00元(2009年 為15，400，000元)。 股本證券價格風險 集團面對之證券價格風險主要來自由基金經理所管理 的投資基金。證券價格風險會透過資產分配限制不同 市場、行業及資產類別設定作分散投資的方法來管理 此風險。於2010年6月30 日，若價格上升/下跌5% 在其他所有變數維持不蠻的情況下，本集團於年內的 盈餘將增加/減少約44，300，000元(2009年為44，300，000 元)。 信貸風險 集團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、可供出售財務資產 及按公平值透過損誰記脹財務資產，該等為集團所承 受最大幅度之信貸風險。 集團之信貸風險主要來自應皈脹款。結算日金額為扣 除呆脹準備後淨額，自集團管理層根撮過往經驗及經 濟現況作出評估

NOTES TO THE FINANCIAL STATEMENTS 30 3. FINANCIAL RISK MANAGEMENT (Cont'd) FINANCIAL RISK FACTORS (Cont'd) 3.1(b) Credit risk ( Cant/d) The credit risk on cash and cash equivalents and bank deposits is limited because the counterparties are banks with high credit-ratings assigned by international credit ratings agencies. All held-to-maturity financial assets, financial assets at fair value through profit or loss and available-for-sale financial assets are of investment grade and investments are managed by experienced fund managers who are selected and monitored by the Finance Committee. The Group has no significant concentration of credit risk, with exposure spread over a large number of counterparties. 3.1 3.2 Liquidity risk The Council considers that liquidity risk is limited as the Group's liabilities are within six months from the respective balance sheet date. To manage the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents to fulfill the normal liquidity needs. CAPITAL MANAGEMENT The Group's funds consist of Capital UGC Block Grant Donations and UGC Matching Grants Other Reserves and Investment Revaluation Reserve, which are set up for various designated purposes as described in notes to It is the Group's objective to maintain sufficient reserves to support the Group's current and future operating expenditure requirements. The Group's overall strategy remains unchanged from prior years. The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of its activities. 財務報表附註 3. 財務風險管理(續) 3.1 財務風險因素(續) 3.1 信貸風險 因對手方均為國際信貸機構給予高評級之銀行，所以 現金及等問現金和定期存款之借貸風險有限。持至到 期目財務資產、按公平值透過損幸在記脹財務資麗及可 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。 集團並無過度集中信貸風險，因擁有多名對手方，可 分散風險。 3.1(c) 流動資金風險 本集團的負債到期日為結算日後半年內，故此校董會 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 金流量被動之影響。 資本管理 集團的資念由資本儲備、教資會整筆撥款儲備、籌募 及教資會配對撥款儲備、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。集庸的目標是保持足夠儲備以配合集 團現在及將來營運支出需要，集團的整體策略如往年 一般沒有改變。 本集團因應經濟情況的變化和其活動風險特徵來管理 其資本結構並作出相應調整。 3.1 Cont NOTES TO THE FINANCIAL STATEMENTS

31 FINANCIAL RISK MANAGEMENT (Cont'd) FAIR VALUE ESTIMATION 1 amendments that are measured the of fair value measurements by level of the following fair value are observable for the asset or liability, either directly or (level 2) that are that are measured 30 2010 are Levell $'000 $'000 Financial assets at fair value Financial $'000 o $'000 • level 1 • $'000 1,000 財務報表附註 3. 財務風險管理(續) 3.3 公平值估算 由2009年月1 日起，本集團採納香港財務報告準則7修訂有關金融 工具在綜合資產負債表按公平值計景，其規定按下列公平值計量 架構披露公平值計量: 相同資產或負債在活躍市場之報價(第一等級) 除了第一等級所包括之報價外，該資產和負債之可觀察資料， 可為直接或間接(第三等級) 資產和負債並非依據可觀察市場數據之資料(第三等級) 本集團之資產按2010年6月30 日之公平值計量如下: 第一等級第三等級第三等級總計 $'00。$'00。$'00。 按公平值透過損。幸在記照之財務資 產 可供出售財務資產的， 188 ﹒年內並無第一等級與第二等級之間的轉撥。 第三等級金融工具於2010年6月30 日之轉變表列如下: 於2009年月1 日及於2010年6月30 日年末所持有資產並無任何盈利或虧損確認於綜合全面收益表。 3. 3.3 Effective July 2009, the Group adopted the amendments to HKFRS 7 for financial instruments that are measured in the consolidated balance sheet at fair value. This requires disclosure the measurement: Quoted prices in active markets for identical assets or liabilities (level 1) Inputs other than quoted prices included within level 1 that liability, indirectly level 2) Inputs for the asset or liability are not based on observable market data (level 3) The Group's assets that are measured at fair value as at 30 June 2010 are as follows: Level 1 Level 2 Level 3 Total $'00 financial 592,785 278,283 871,068 value through profit or loss Available-for Sale Financial Assets 15,188 1,163 1,000 17,351 There were no transfers between level l and level 2 during the year. The following table presents the changes in level 3 instruments for the year ended 30 June 2010: At 1 July 2009 and at 30 June 2010 There was no gain or loss recognised in the consolidated statement of comprehensive income for the assets held at the end of reporting period.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS In determining the carrying amounts of some assets and liabilities, the Group makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. These estimates involve assumptions about such items as risk adjustment to cash flows or discount rates future changes in salaries and future changes in prices affecting other costs. The Group's estimates and assumptions are based on historical experience and expectations of future events and are reviewed periodically. In addition to assumptions and estimations of future judgements are also made during the process of applying the Group’s accounting policies. Depreciation of property, plant and equipment and amortisation of intangible assets The Group determines the estimated useful lives for related depreciation charges for plant and equipment and amortisation of intangible assets. Management will revise the depreciation or amortisation charges where useful lives are different to previously estimated. Valuation of investments The fair values of financial instruments traded in active markets are based on quoted bid prices at the balance sheet date. The fair values of financial instruments that are not traded in an active market are determined using established valuation techniques. Held-to-maturity financial assets Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified held-to-maturity intention and ability to hold them until maturity. In evaluating whether the requirements to classify a financial asset as held-to-maturity are management make significant judgements. Failure in correctly assessing the Group's intention and ability to hold specific investments until maturity may result in reclassification of the whole portfolio as available-for sale financial assets. Provision for doubtful receivables The provisioning policy for bad and doubtful debts of the Group is based on the evaluation of collectability and ageing analysis of the receivables and on management's judgement. based on the current creditworthiness and the past collection history of each customer. If the financial conditions of customers of the Group was to deteriorate, resulting in an impairment of their ability to make additional allowances may be required. 32 4. 主要會計估計及判斷 在聲定部分資產和負債的眼面金額時， 集團就不確定的未來事件對於資產負債 表白該等資產和負債的影響作出了假 設。這些估計涉及對現金流量風險調整 或貼現率、未來薪金變動和影響其他成 本的價格未來變動的假設。集團根據過 去的經驗和對未來事件的預計作出估計 和假設，並定期讀檢。除對未來事件的 假設和估計外，集團採用會計政策時亦 需要作出判斷。 物業、機器及設備之折舊及無形資產之攤銷 本集團以預計，使用年限計算 物業、機器 及設備之折舊及無形資產之攤銷。如原 先估計之使用年限未能與事實相符，管 理層會修訂其折舊率。 投資估值 在活躍市場買賣的金融工具之公平值根 據結算日的市場報價列騷。沒有活躍市 場買賣的金融工具，其公平{直根據既定 的估值技術釐定。 持有至到期投資 就持有的固定或可確定的付款和固定到 期目的非衍生金融資產，集團如有意及 有能力持有至到期的，則歸類為持至到 期日財務資產投資。在評估某金融資產 是否符合歸類為持至到期日投資的條件 時，管理層需要作出重大判斷。如果未 能對集團是否有意及有能力持有某特定 投資至到期日作出準碟的判斷，可能會 導致整個投資組合需被重新歸類為可供 出售財務資產。 呆壞賬撥備 本集團之呆壞賬撥備政策是根據對收回 款項之可能性之評估、賬戶之脹齡分析 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判斷，根據每 名客戶之現時信譽及過往收款紀錄。倘 本集團客戶之財務狀況惡化，會損壞其 還款能力，因而有可能需要額外撥備。 GOVERNMENT SUBVENTIONS AND GRANTS Continuing Professional UGC Block Fund funded lit Activities Total $'000 $'000 $'000 $'000 $'000 $'000 University XE Year Subventions and Grants (Note 22) 33 5. 政府資助及撥款 GOVERNMENT SUBVENTIONS AND GRANTS year 2010 教資會資助及撥款 University Grants Committee 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) 退還差餉及地租 Rates and Government Rent Refunds 政府有關機構撥款(附註22) Grants from Government Agencies (Note 22) 住民Year 2009 教資會資助及撥款 University Grants Committee 整筆經常撥款及指定撥款(附註22) Recurrent Block Grant and Earmarked Grants (No紀22) 退還差餉及地租 Rates and Government Rent Refunds 配對撥款 Matching Grants 政府有關機構撥款(約註22) Grants from Government Agencies (Note 22) 持續進修教育 活動 教資會整筆在撥款贊助活動 籌募及有關活動 UGC Block Grant funded Activities Fund Raising related Activities Continuing and Professional Education Program ('CPEP') Activities 科研活動其他活動 Research Activities Other activities總計 Total 4,252 75,567 1,468,659 20,282 O 107 。142 20,531 TUITION, PROGRAMMES AND OTHER FEES UGC Block funded Activities Fund Raising Related Activities Grant- funded CPEP Activities Total $'000 $'000 $'000 $'000 Year 2010 Year 2009 6. 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 籌募及有關活動 持續進修教育活動 總計

年度 年度 34

INTEREST AND INVESTMENT INCOME 2010 2009 $'000 $'000 Available-Financial Financial Fair 35 7. 利息及投資收入 利息 Interest 可供出售財務資產之已實現盈利及投資收入114,307 25,488 Realised gains and investment income on Available-for-Sale financial Assets 按公平值透過損益記賬之財務資產之公平值變動15,234) Change in fair value of financial Assets at Fair Value through Profit or Loss

Amounts Others Total Amounts Others Total Academic General 8. 外界捐款 DONATIONS AND BENEFACTIONS 承諾款項承諾款項 其他總計其他總計 附註25) 附註25) (Note 25) (Note 25) 學術活動及一般用途130,004 80,013 210,017 16,210 23,904 40,114 Academic Activities and General Uses 獎學金及助學金O 16,858 16,858 O 18,361 18,361 Scholarships and Bursaries 研究及其他項目(附註22) O 5,000 5,000 O 8,992 8,992 Research and Other Projects (Note 22) 130,004 101 ,871 231 ,875 16,210 51,257 67,467 36 9. AUXILIARY SERVICES AND OTHER INCOME UGC Block Fund Grant- Raising Funded Related CPEP Research Other Activities Activities Activities Activities Activities Total

Year 2010 Residence Halls Research Contract Rental Income Rental Contribution from Staff Services Workshop Income and Other Sponsorships Research Project Sponsorships (Note 22) Miscellaneous Year 2009 Residence Halls Research Contract Rental Income 1,446 21,687 Rental Contribution from Staff Services Fees, Workshop Income and Other Sponsorships Research Project Sponsorships (Note 22) Miscellaneous 21,218 37 輔助服務及其他收入 年且 2010 學生宿舍 研究合約 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 研究項目贊助(附註22) 雜項收入 學生宿舍 研究合約 Res巴arch 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 研究項目贊助(~付註22) 雜項收入 教資會整筆 撥款 Grant funded 2,291 籌募有關 活動 持續進修教育活動 科研活動 56,997 15,822 其他活動 63,516 42,164 10,925 7,915 總計 63,516 56,997 48,139 22,831 18,551 15,822 3,573 22,468 2,964 6,658 72,819 124,520 229,429 21 ,218 6,973 7,096 78,767 128,753 242,807 10. EXPENDITURE Depreciation Salaries and Benefits Operating Expenses Depreciation Amortisation Total $'000 $'000 $'000 $'000 (Note Year

Learning and Research 79,585 1,631,004 Instruction and Research 474 Central Computing Facilities Other Academic Services Sub-total Institutional Support 20,733 Management and General Premises and Related Expenses 80,786 Student and General Education Services Other Activities Sub-total Total Expenditure Year 2009 Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services INM- 531,734 65,754 Sub-total Institutional Support Management and General 172,146 Premises and Related Expenses 73,532 Student and General Education Services Other Activities 275,647 Sub-total Total Expenditure Included in Salaries and Benefits was a total sum of million representing the Group's contributions towards defined contribution retirement benefits schemes. 38 10. 開支 折舊及攤銷 薪酬及福利 營造支出 總計 附註 年度2010 學術及研究 教學及研究1,110,856 440,563 79,585 1,631 ,004 圖書館44,824 33,313 435 78,572 中央電腦設備60,287 20,474 3,296 84,057 其他教學服務49,229 6,831 971 57,031 4、 1,265,196 501,181 84,287 1,850,664 校務支援 管理及一般事務109,441 20,733 1,176 131,350 校舍及有關費用112,433 171,999 95,167 379,599 學生及一股教育服務53,329 80,786 886 135,001 其他活動2,779 31,330 。34,109 4、77,982 304,848 97,229 6日0，059 總開支1,543,178 806,029 181,516 2,530,723 Total 年起F IYear2α19 學術及研究 教學及研究1,134,497 472,166 61,100 1,667,763 圖書館47,973 32,240 304 80,517 中央電腦設備63,034 21,551 3,402 87,987 其他教學服務45,310 5,777 948 52,035 4、計1,290,814 531 ,734 65,754 1,888,302 total 校務支援 管理及一般事務109,486 20,031 737 130,254 校舍及有關費用115,566 172,146 92,881 380,593 學生及一般教育服窈47,840 73,532 839 122,211 其他活動2,755 33,109 127 35,991 總開支1,566,461 830,552 160,338 2,557,351 薪酬及福利包括集周為界定供款退休金計劃所支付之供款共 Included $128.5 (2009: $129 representing

ANALYSIS OF OPERATING EXPENSES 2010 2009 $'000 $'000 Learning and Research 30,124 501,181 531,734 Management and General General Insurance Legal fee 39 10.1 營運支出分析 學術及研究 一般辦公室/教學及科研費用/設備300,766 I 340,721 General Office / Teaching and Research Expenses / Equipment 研究生助學金I 161,527 Postgraduate Studentships 圖書館書籍及期刊I 29,486 Library Books and Periodicals 501 ,181 531 ,734 管理及一般事務 一般辦公室費用/設備I 17,543 General Office Expenses / Equipment 一般保險I 849 General insurance 法律費用I 747 Legal Fee 核數師酬金556 I 610 Auditor's Remuneration 銀行費用203 I 282 Bank Charges 20,733 20,031 10.1 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2010 2009 $'000 $'000 Premises and Related Expenses 70,810 Works Student and General Education Services Other Activities 40 10.1 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73,415 I 68,088 Utilities, Cleaning and Security Service Expenses 維修及保養/小型工程1 69,719 Repair and Maintenance / Minor W orks 差齣及地租1 27,457 Rates and Government Rent 一般辦公室費用/設備1 5,667 General Office Expenses / Equipment 物業保險1 1,215 Property Insurance 171,999 172,146 學生及一般教育服務 獎學金及助學金1 36,646 Scholarships and Bursary 宿舍25,596 1 22,302 Residence Halls 學生活動1 8,950 Student Activities 一般辦公室費用/設備1 3,090 General Office Expenses / Equipment 學生醫療及牙科保健1 2,544 Medical and Dental Care for Students 80,786 73,532 其他活動31,330 33,109 806,029 830,552 2010 2009

Annual Equivalent HK$ 1,800,001 - 1,950,000 1,950,001 - 2,100,000 2,100,001 - 2,250,000 13 HK$ - - 2,550,000 HK$ - 2,700,000 HK$ - 2,850,001 - - 1 3,150,001 - 1 ° HK$ > 1 Remuneration includes gratuity / contribution to retirement housing and other benefits. For staff who are provided with quarters, their housing benefits are calculated by reference to the rateable values assessed by the Rating and Valuation Department of the Government of The Hong Kong Special Administrative Region. 41 10.2 高收入員工 REMUNERATION OF HIGHER PAID STAFF 員工數目 Number of Employees 2010 2009 年薪等值 Annual Equivalent Remuneration 43 54 HK$ 20 22 HK$ 4 2,250,001 2,400,000 8 7 HK$ 2,400,001 5 8 2,550,001 4 2 2,700,001 2,850,000 2 3 HK$ 3,000,000 1 2 HK$ 3,000,001 3,150,000 1 HK$ 3,300,000 3,300,001 1 薪俸薪金、約滿酬金 退休金計畫供款 房屋其他津貼。大學提供宿舍，房屋福利 香港特別行政區政府差餉物業估價署應課差餉租值計算 salary, schemes, and staff who Income Auxiliary Services and Other Income Expenditure Salaries Surplus I from operation for the year Result Surplus I (Deficit) for the year before taxation Taxation Surplus I Note: UGC Block Grant funded Activities Other Activities Other Non-Block Grant Fund Raising Related Activities Research Activities CPEP Activities $'000 $'000 $'000 Total $'000 $'000 (2,400) Other Non-Grant Inter segment - Transaction Elimination Raising funded Related CPEP Research Net Total 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. 42 2009 Inter-segment Other Transaction Activities Total Elimination Net Total $'000 $'000 $'000 $'000 綜合分部收支報表 CONSOLIDATED INCOME AND EXPENDITURE BY SEGMENT 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 轉撥自資本儲備 Transfers from Capita! Reserves 間接費用回收/分部憫之收入 Overhead Recovery Inter-segment Income 開支 薪金 Salaries 其他營運支出 Other Operating expenses 折舊及攤銷 Depreciation and Amortisation 問接費用回收/分部間之開支 Overhead Recovery Inter-segment Expenditure 其他非盤巒搜款 教資會盤皇宮 撥款資助活總募及有關 勘活動 UGC Block Grant funded Related Research 持續進修教育活動科研活動 其他活動 總計滯總計 5,709 1,533,985 Surplus (Deficit) 所共同控制個體的經營業績 Share of Result of a Jointly Controlled Entity 所佔聯營公司的經營業績 Share of Result of an Associate 本年度稅前盈餘 虧絀 Surplus before taxation 說項 本年度稅後盈餘虧絀34,011 189,670 99,634 23,774 73,286 420,375 Surplus (Deficit) for the year after taxation 投資會整筆撥款資助毒害接投海瓣，是事正言身為揮主皇宮建投資巨是安放結斂，府定是皆是井度互會結曹亞書。 其他非整筆捐款 教資會整筆撥款資助 撥款資助清攤主主及有關 動活動 UGC Block Grant Fund 持續進修教育活動 分部間之交易 科研活動其他活動總計淨總計 Activities Total Elimination Grant funded PROPERTY, PLANT AND EQUIPMENT COST 2008 Balance as at 30 June 2008 Additions Disposals 2009 Balance as at 30 June 2009 Additions Disposals Exchange translation difference 2010 Balance as at 30 June 2010 ACCUMULATED DEPRECIATION 2008 Balance Charge for the year Exchange translation difference 2009 Balance as at 30 June 2009 Charge for the year Exchange translation difference Disposals 2010 Balance as at 30 June 2010 CARRYING AMOUNT 2010 Balance as at 30 June 2010 2009 Balance as at 30 June 2009 Buildings 1,474,624 Construction Fixtures and in progress equipment 46,808 1,619,634 103,638 100,323 (87,577) (35,589) 62,869 1,684,368 183,241 148,604 333,464 (49,294) 3,304,370 The University campus is situated on approximately 60 hectares of land in Sai Kung under lease from the Government of The Hong Kong Special Administrative Region 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 for 50 years through 28 June 2057. The above items of property plant and equipment are depreciated on a straight-line basis at the following rates per annum: Buildings Fixtures and equipment 2% per annum 20% - 25 % 20% - 25% per annum 43 物業、機器及設備 PROPERTY, PLANT AND EQUIPMENT 成本 2008年6月30 日之給餘 Balance 添置 轉撥 Transfers 出售 Disposals 2009年6月30 日之結餘 Balance 添置 出售 Disposals 匯兌差額 Exchange translation 2010年6月30 日之結餘 Balance 累積折舊 2008年6月30 日之結餘 Ba1ance as at 30 June 2008 本年度計算之折舊 匯兌差額 Exchange translation 出售 Disposals 2009年月30 日之結餘 Balance 本年度計算之折舊 匯兌差額 Exchange translation 出售 Disposals 2010年6月30 日之結餘 Balance 賬面淨值 2010年月30 日之結餘 2009年6月30 日之結餘 樓宇 3,115,227 在建工程 傢具及設備 62,869 126,274 大學座落於西貢約60公頃之土地，由香港特別行政區政府按名義租金批出，為期58年，至2047年6月30 日止。 總計 深圳市政府按名義租金批予集固其中一筒附屬公司港科大研究開發(深圳)有限公可一幅7 ，484平方米土地作為興建產學研基地之用。 為期50年，至2057年6月28 日止。 以上之物業、機器及設備項目按商線法依照下列年率計算折舊: property, plant and equipment 樓宇 每年傢具及設備 and per annum 每年20%-25% annum 2008 2009 20l01 Balance as at 30 June 2010 AMORTISATION 2008 june 2008 2009 2010 CARRYING AMOUNT 2010 2009 Computer Software $'000 13. 無形資產 INTANGIBLE ASSETS 成本 2008年6月30 日之結餘 Balance as at 30 June 2008 添置 Additions 出售 Disposals 2009年6月30 日之結餘 Balance as at 30 June 2009 添置 Additions 出售 Disposals 匯兌差額 Exchange translation difference 2010年6月30 日之結餘 Balance 攤銷 2008年6月30 日之結餘 Balance as at 30 Jun本年度計算之攤銷 Provided for the year 出售 Disposals 2009年6月30 日之結餘 Balance as at 30 June 2009 本年度計算之攤銷 Provided for the year 出售 Disposals 2010年6月30 日之結餘 Balance as at 30 June 2010 賬面淨值 CARRYING AMOUNT 2010年6月30 日之結餘 Balance as at 30 June 2010 2009年6月30 日之結餘 Balance as at 30 June 2009 電腦軟件資產按直線法每年25%計算攤銷。 電腦軟件 Computer software is amortisated on a straight-line basis at 25% per annum. 44 14. FINANCIAL ASSETS Held-to-Maturity Financial Assets at amortised cost List Unlisted Maturing after one year Available-for-Sale Financial Assets at fair value (Note a) Portfolio, at fair value (Note a)

Unlisted Equity Securities, at cost (Note b) Listed Equity Securities, at market value Financial Assets at Fair Value through Profit or Loss Unlisted Equity Funds, securities , at market value (Note a) Unlisted Fixed Income Funds (Note a) Unlisted Real Assets Funds (Note a) The fair value was determined by reference to bid prices quoted in active markets or by fund managers.

(b) The unlisted available-far-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. 財務資產 至到期日財務資產，按攤銷成本 非上市於一年內到期Maturing within one year 於一年後到期 可供出售財務資產 非上市股權基金，按公平值(附註a) O Unlisted Equity Funds, 非上市固定收入組合，按公平值(附註a) 1,163 Unlisted Fixed Income Portfolio fair 非上市股權證券，按成本(附註b) 上市股權證券，按市值887,452 按公平值透過損益記賬之財務資產 非上市股權基金(附註a) 非上市固定收入基金(附註份 非上市實物基金(附註份 871 ,068 財務資產主要以港元及美元為單位。 Financial assets are mainly denominated in Hong Kong dollars and United States dollars. (a) 公平值乃參考活躍市場或基金經理報價釐定

Structure Associate Shenzhen-Hong Principal Place Directly Held by Class of of Operation the University Shares Held People's Republic of The summarised in respect of the associated set Total liabilities share of the year share of 2010 2009 51,692 Principal Activity commercialization, services, senior administrative executives. 2010 2009 於聯營公司權益 INTEREST IN AN ASSOCIATE 所佔淨資產 Share of net assets 聯營公司 業務架構模式 童冊地點/營運地點 擁有權益 Proportion of Nominal Value of Form of Place of Incorporation / Issued Capital 持有股本類別 主要活動 深港產學研基地 事業法人單位 中華人民共和國33% 注入資本 致力於科技商業化，培育新公司，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。

PKU-HKUST Shenzhen-Hong Kong Institution Institutional Organization People’s Republic of China 下文載列為聯營公司之財務資料概要: Capital Contribution To engage in technology commercialization， incubation of start-up companies, provision of research and technology management services, training of senior management and administrative executives.

The summarised financial information respect of the associated company is set out below: 總資產183,082 Total assets 總負債(26,438) Total liabilities 資產淨值Net assets 集團應佔聯營公司之資產淨值51 ,692 50,401 Group's share of net assets of the associated company 營業額27,480 Turnover 本年度混利10,405 Profit for the year 集團年內應佔聯營公司業績3,433 Group's share of results of the associate for the year 46 16. 2010 2009 Share of net assets (Note) Proportion of Nominal Value of Issued Capital Held by the Group Country of Incorporation and Operation Form of Business Structure Percentage of Voting Power of the Board and Class of Held by Nature of Business

Name of Entity Shares Zhejiang Advanced Manufacturing Institute of HKUST Co. Ltd. (ZAMI) Sino-foreign joint venture People's Republic of China Capital contribution Promotion of manufacturing research The Group holds 51 % of the share capital of ZAMI and has appointed 3 out of 5 directors in the Board representing 60% of voting power of the Board. under the memorandum and articles and shareholders' agreement of all significant events including be mutually agreed by the Group and the other significant shareholder. Therefore, ZAMI is classified as a jointly contro11ed entity of the Group. Note:

The Group's share of losses exceeded its interest in the joint venture. 47 於合資企業權益 INTEREST IN A JOINT VENTURE 所占淨資產(附註) 註冊地點/ 擁有股權 營運地點 於董事局之投票權 業務架構模式 持有股本類別 業務性質 共同控制實體 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 Joint research ('ZAMI') 集團持有“浙江港科大'之51%股權，並於5席之董事局內占有3席，擁有60%之投票權。但是，根據“浙江港科大'之公司章程及股東協議 ，所有重大之事項包括財務及營運之決策必須得到集團及其他主要股東一致決議通過，因此，集團把“浙江港科大'歸類為共同控制之實體。 determining the recoverability receivable, the financial statements' settled the date the respective impairment 應收賬款及預付款項 ACCOUNTS RECEIVABLE AND PREPAYMENTS 預付款項及按金 Prepayments and Deposits 教資會應付款項8,410 O Amount due from UGC 應收賬款108,431 Accounts Receivable 應收賬款於發出通知後須立即價還。 Accounts receivable are repayable on demand. 在衡量應收款之還款能力時，集團考慮其由給予信貸日至報告日期間之信貸質聚變化。己過期而無作減值 撥備之應收帳款已於本報告日前清付或相關應收賬款過往並無結欠款項。故此，校董會認為無需就應收眼款作減值撥備，本集團並無就該等結餘持有任何抵押。 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 debtor. Accordingly, the Council believes that there is no impairment provision required on these accounts receivable as at the balance sheet date. The Group does not hold any collateral over these balances. 應收賬款主要以港元為單位。 The Accounts receivable are mainly denominated in Hong Kong dollars. 48 18. CASH AND CASH EQUIVALENTS 2010 $'000 2009 $'000 106,204 19. ACCOUNTS PAYABLE AND ACCRUALS 2010 2009 49 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 in Hand 現金及等同現金主要以港元及美元為單位。 1,218,812 105,452 1,324,264 1,453,822 1,560,026 The cash and cash equivalents are mainly denominated in Hong Kong dollars and United States dollars. 19. 應付脹款及應計費用 $'00。$'00。 應付帳款及應計費用301,922 271 ,980 Accounts Payable and Accruals 教資會應收款項O 224 Amount due to UGC 301,922 272,204 應付脹款及應計費用主要以港元為單位。 The accounts payable and accruals are mainly denominated in Hong Kong dollars. 20. PROVISION FOR STAFF BENEFITS 2010 2009 year

20. 教職員福利撥備 退職金42,871 38,809 Gratuities 代假期金及其他62,584 73,221 Leave Pay and Others 105,455 112,030 應付於: Payable: 一年內93,831 95,538 Within 1 year 一年後11,624 16,492 After 1 year 105,455 112,030 CATEGORIES OF FINANCIAL INSTRUMENTS 2010 2009 $'000 $'000 deposits Assets Value through 金融工具分類 財務資產 Financial Assets 貸款及應收款 Loan and Receivables 銀行存款2,040,879 Bank deposits 應收賬款及按金118,353 116,090 Accounts receivable and deposits 現金及等同現金 Cash and cash equivalents 可供出售財務資產17,351 887,452 Available-for-Sale Financial Assets 按公平值透過損益記賬之財務資產871 ,068 O Financial Assets at Fair Value through profit or Loss 持至到期日財務資產574,245 372,863 Held-to-Maturity Financial Assets 財務負債 Financial Liabilities 其他按攤銷成本入賬之財務負債 Other Financial Liabilities at Amortised Cost 應付賬款及應計費用156,057 113,543 Accounts Payable and Accruals 51 UGC Subventions and Grants Grants from Government Agencies Donations Sponsorships Total comprehensive income (Notes 8 and 9) 1,439) ((1,005) (Transfer to Capital Reserves (Note 23) 2009 Balance as comprehensive income (Notes 5,8 and 9) Balance June 2010 遞延收益 DEFERRED INCOME 教資會資助及撥款 政府有關機構撥款 捐款 贊助 總計

2008年6月日之結餘 Balance as at 30 June 2008 已收/應收之款項 Amount received / receivable 承諾捐款(附註 Pledged Donations (Note 25) 其他1,777,204 35,890 6,389 10,346 1,829,829 Others 計入綜合全面收益表(附註、8及1 ,441 ,647) 32,218) 8,992) (10,919) 1 ,493,776) Credited to consolidated statement of Income (Notes 5, 匯兌差額O (7) O O (7) Exchange translation difference 轉至資本儲備(附註23) 114,505) 1 ,439) 2,657) 1 ,005) 119,606) Reserves 2009年6月30 日之結餘598,025 16,497 7,900 24,297 646,719 Balance as at 30 June 2009 已收/應收之款項 Amount received / receivable 承諾捐款(附註25) O O 4,416 O 4,416 Pledged Donations (Note 25) 其他1,726,634 58,336 5,340 14,611 1,804,921 Others 計入綜合全面收益表(附註5 、8及1 ,468,659) 44,795) 5,000) 15 ,822) 1 ,534,276) Credited to consolidated statement of Income (Notes 5, 8 匯兌差額 Exchange translation difference 轉至資本儲備(附註23) 220,197) (788) 4,577) (649) 226,211) Transfer to Capital Reserves (Note 23) 2010年6月30日之結餘635,803 29,309 8,079 22,437 695,628 Balance as at 30 June 2010 52 53 23. 資本儲備 CAPITAL RESERVES 物業、機器及設備的資金來源 無形資產的資金來源 總計 Property, Plant and Equipment Funded by Intangible Assets Funded by Total 政府資助及撥款或政府資助及撥款或政府資助及撥款或 指定捐款指定捐款指定捐款 Government Subventions and Grants or Specific Donations Government Subventions and Grants or Specific Donations Government Subventions and Grants or Specific Donations 其他 總計 其他 總計 其他 總計 Others Total Others Total Others Total (附註2) 俯首註13) (Note p) (Note 13) 2008年7月1 日之結餘2,749,341 500,097 3,249,438 1,847 470 2,317 2,751 ,188 500,567 3,251,755 Balance as at 1 July 2008 相當於添置物業、機器及設備及無形資產之款項而轉撥自: Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets transferred from: 遞延收益(附註22) Deferred Income (Note 22) 教資會整筆撥款儲備 UGC Block Grants 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 100,570 113,213 213,783 19,036 383 19,419 119,606 113,596 233,202 相當於折舊及攤銷之款項而轉撥至: Amounts equivalent to depreciation and amortisation charges transferred to: 綜合全面收益表(132,893) Consolidated Statement of Comprehensive Income 教資會整筆在撥款儲備。 UGC Block Grants 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 (132,893) (25,670) (158,563) (1 ,523) (252) (1 ,775) (134,416) (25,922) (160,338) 相當於出售項目淨值之款項而轉撥至: Amounts equivalent to net book value of disposed items transferred to: 綜合全面收益表 Consolidated Statement of Comprehensive Income 其他儲備 Other Reserves 外幣換算之差額 Exchange differences arising from retranslation 2009年6月30 日之結餘 Balance as at 30 June 2009 淨轉撥自(至) : Net Transfer from I (to): 教資會整筆撥款儲備(附註叫 UGC Block Grants Reserves (Note 24) 18,553 123 18,676 籌募及教資會配對撥款儲備(附註25) Donations and UGC Matching Grants Reserves (Note 25) 3,915 37 3,952 其他儲備(附註26) Other Reserves (Note 26) 65,070 (29) 65,041

CAPITAL (Cont'd) Property, Plant and Equipment Funded by Intangible Funded by Total Government Government Government Subventions and Subventions and Subventions and Grants or Grants or Grants or Specific Donations Others Total Donations Others Total Donations Others Total 2009 Balance as at 1 July 2009 transferred from: Reserves 資本儲備(續) CAPITAL RESERVES (Cont'd) 物業、機器及設備的資金來源 無形資產的資金來源 property, planted and Equipment funded Assets 政府資助及撥款 或政府資助及撥款 或政府資助及撥款或 指定捐款 指定捐款 指定捐款 其他總計Specific 其他總計其他總計 附註12 附註13 (Note 12) (Note 13) 2009年月1 日之結餘 Balance as 相當於添置物業、機器及設備及無形資產之款項而轉撥自: Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets transferred from: 遞延放益(附註22) Deferred Income (Note 22) 教資會整童在撥款儲備 UGC Block Grants 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 相當於折舊及攤鈴之款項而轉撥至: Amounts equivalent to depreciation and amortisation charges transferred to: 綜合全面收益表 Consolidated Statement of Comprehensive Income 教資會整筆撥款儲備 UGC Block Grants 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 相當於出售項目淨值之款項問轉撥至: Amounts equivalent to net book value of disposed items transferred to: 綜合全面收益在表 Consolidated Statement of Comprehensive Income 其他儲備 Other Reserves 外幣換算之差額 Exchange differences arising from retranslation 2010年6月30 日 Balance as at 30 June 2010 淨轉撥自/(至) : Net Transfer from / (to): 教資會整筆撥款儲備(如註的 UGC Block Grants Reserves (Note 24) 籌募及教資會配對撥款儲備(附註25) Donations and UGC Matching Grants Reserves (Note 25) 其他儲備(約註26) Other Reserves (Note 26) 54 Research General and Projects and Development Others Reserve Total (Capital 2009 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 2008年6 月30 日之結餘1,001 ,415 Balance as at 30 June 2008 本年度盈餘/(虧細) 24,988 85,014) 60,026) Surplus / (Deficit) for the year 轉攘至資本儲備(附註23) 18,676) O 18,676) Transfer to Capital Reserves (Note 23) 2009年6 月30 日之結餘916,401 Balance as at 30 June 2009 本年度(虧細) /盈餘2,091) 34,011 (Deficit) / Surplus for the year 轉撥至資本儲備(附註23) 20,138) O 20,138) Transfer to Capital Reserves (Note 23) 2010年6月30 日之結餘86,339 952,503 Balance as at 30 June 2010 55 Endowment Designated Unspecified Total 2008 Balance as at 30 June 2008 Surplus / (Deficit) for the year Transfer to Capital Reserves (Note 23) Exchange differences arising from retranslation Other inter-fund transfer (Note 26) 2009 Balance as at 30 June 2009 Surplus / (Deficit) for the year Transfer to Capital Reserves (Note 23) Exchange differences arising from retranslation Other inter-fund transfer (Note 26) Balance as at 30 June 2010 56 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 2008年6月30 日之結餘444,410 Balance as June 2008 本年度盈餘/ (虧組) 11 ,573) Surplus 轉撥至資本儲備(附註23) O 1 ,059) 3 ,952) Capita1 Reserves (Not巳23) 外幣換算之差額retranslation 其他資金轉撥(附註26) 2009年6月30 日之結餘674,450 Balance as 本年度盈餘/(虧絀) 11 ,547 Surplus 轉撥至資本儲備(附註23) 5 ,607) 1 6,323) Capital 外幣換算之差額 retranslation 其他資金轉撥(附註26) 13,433) 1 1,500) Other 2010年6月30 日之結餘Balance as 25 DONATIONS AND UGC MATCHING GRANTS RESERVES (Cont'd) Further analysis of the Donation and UGC Matching Grants Reserves: Balance as at 30 June 2008 Income Grants and Donations Income from investments Others Transfer from Capital Reserves (Note 11) Expenditure Teaching and Research Enhancement / Others Academic Strength and Niche Development Internationalization and Student Exchange Activities I Student Development / Scholarship / Bursary Transfer from / (to) Capital Reserves (Note 23) Other inter-fund transfer (Note 26) exchange differences arising from retranslation 2009 Balance as at 30 June 2009 Income Grants and Donations Income from investments Others Transfer from Capital Reserves (Note 11) Expenditure Teaching and Research Enhancement I Others Academic Strength and Niche Development Internationalization and Student Exchange Activities I Student Development / Scholarship 23) Transfers from I (to) Capital Reserves (Note 23) Other inter-fund transfer (Note 26) Exchange differences arising from retranslation 2010 Balance as at 30 June 2010 Matching Grant Received donations Qualifying for Matching Other Donations 1,915,987 25. 轉募及教資會配對撥款儲備(續) 轉募及教資會記對鐵款儲備之詳細分析: 2008年6月30 日之結餘 收入 支出 撥款及捐款 投資收入 其他 轉授自資本儲備(附詮11) 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/(至)資本儲備(附設23) 其他資金轉撥(附註26) 外幣畫是算之差額 2009年6月30 日之結餘 收入 撥款及捐款 投資收入 其他 轉撥自資本儲備(附設11)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 撥自/(至)資本儲備(附註23) 其他資金轉撥(附註26) 外幣換算之差額 2010年6月30 日之結餘 符合敵對摟款 款資會對資格之捐款 款其他捐款 總計 Total 25. DONATIONS AND UGC MATCHING GRANTS RESERVES (Cont'd) Information on pledged donation Donations for Capital Projects Donations for Other Activities Total 30 2010 58 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 資本項目其他活動 之捐款之捐款 總計 於2008年 6日未兌現之款額 Outstanding amount as at June 在本年度己收之捐款並於綜合全面收益表確認(附註8) 。 Amount received during the year recognised in consolidated statement of comprehensive income (Note 在本年度己收之捐款並記入遞延收益賬項(附註22) Amounts received during the year credited to Deferred Income (Note 22) 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Outstanding amount as at June 在本年度已收之捐款並於綜合全面收益表確認(附註8) 。Amount received during the year recognised in consolidated statement of comprehensive income (Note 在本年度已收之捐款並記入遞延收益脹項(附註22) 4,416) 。4,416) Amounts received during the year credited to Deferred Income (N te 新增未兌現之承諾捐款61 ,090 New outstanding pledges 於2010年6月日未兌現之款額331 ,820 Outstanding amount as at 30 June 2010

statutory reserves of an Associate Exchange differences arising from retranslation (Transfer to Capital Reserves (Note 23) Change in share of statutory reserves of an Associate 其他儲備 OTHER RESERVES 2008年6日之結餘754,883 Balance as at 30 June 2008 本年度盈餘106,978 Surplus for the year 轉撥至資本儲備(附註23) 65,041) Transfer to Capital Reserves (Note 23) 其他資金轉撥(附註25) 於聯營公司所佔法定儲備之變動1,884 Change in share 外幣換算之差額2009年6月日之結餘797,191 Balance as at 30 June 2009 本年度盈餘196,694 Surplus for the year 轉撥至資本儲備(附註23) 52,010) 其他資金轉撥(附註25) 14,010 Other inter-fund transfer (Note 25) 於聯營公司所佔法定儲備之變動外幣換算之差額2,648 Exchange differences arising from retranslation 2010年6月30 日之結餘957,953 Balance as at 30 June 2010 RELATED PARTY TRANSACTIONS

All transactions including procurement of goods and services as well as donations involving members of the University Councilor key management personnel or organisations in which they may have an interest are conducted on an arm's length basis and in accordance with the University's regulations and procedures. During the the Group has entered into the following transactions with other related parties: (a) Transactions with an Associate Rental paid to an Associate (b) Key management personnel compensation Salaries and other short-term employee benefits Post employment benefits 60 $'000 $'000 3,015 27. 有關連人士的交易 所有牽涉大學校董會成員或主要管理人員或與該等人士有利益關係的機構之採購及捐款活動 均以正常基礎及按照大學的條例及程序處理。 於本年度，集團與其他有關連人士訂立的交易如下: 與聯營公司之交易 支付予聯營公司之租金 主要管理人員的酬金 薪金及其他短期僱員福利 職離福利

COMMITMENTS (a) Capital Commitments Outstanding capital commitments not provided for in the financial statements were as follows: Contracted for Authorised but not contracted for Funding support for the outstanding capital commitments: 2010 2009 $'000 $'000 Amounts to be financed by the Group's Resources Amounts recognised as Income and retained as Other amounts representing other reserves to be allocated Amounts received and reflected as deferred income as at June Amounts in respect of UOC Grants approved but not yet received Amounts pledged by donors Operating Lease Commitments As at June, the Group had future aggregate minimum lease payments under non cancellable operating payable as In one year In the second to fifth years inclusive As at June, the Group had future aggregate minimum lease income under nonmcancellable operating leases as follows: yea in the second to fifth years inclusive 2010 28. 承擔 資本承擔 以下為尚未於財務報表作出準備之資本承擔: 已簽約 已獲授權但尚未簽約 上述之承擔的資本來源: 源自集團其他資本之金額 已確認為收入並留存於教資會接筆撥款儲備之金額 UGC Block Grant Reserves 將會從其他儲備中分配之金額已收並反映於遞延收益於2010年6月30 日之金額30 2010 教資會己批但未收到之撥款金額 UGC received 捐獻者承諾之金額2,418,425 營遠也約之承擔 (i) 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賃付款合共 如下: 30 lease non cancellable leases payable follows: 一年內 第二至第五年內 inclusive (ii) 截至6月30 日止，集團擁有不可撤銷營運租賃之日後最低租賃收入合共如下: 30 一年內 第二至第五年內 29. Taxation No taxation is provided for the operation of the University and a HKUST College of Lifelong Learning Limited, which are exempt from taxation by virtue of Section 88 of the Inland Revenue Ordinance. Hong Kong profits tax has been provided for a non-tax exempt subsidiary at the rate of 16.5% (2009: 16.5%) on the estimated assessable surplus for the year. Provision for Hong Kong profits tax 2010 2009 The tax on the surplus from operation for the year differs from the theoretical amount that would arise using the tax rate applicable to profits of the Group as follows: 2010 2009 Surplus from operation for the year Tax calculated at a tax rate of 16.5% (2009: 16.5%) Income exempt from taxation Expenses exempt from taxation Other differences Taxation charge Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit through future tax profits is probable. The subsidiaries of the Group have not recognized deferred income tax of $8.9 million (2009: $7.6 million) in respect of cumulative losses amounting to $35.5 million (2009: $30 million). The amount will expire on various dates up to 2015. Certain comparative figures in the consolidated balance the consolidated statement of cash flows and notes 10, 12, l3, 14,20,21 and 28 have been reclassified to conform with the current year's classification. 62 29. 稅項 TAXATION 大學及其一附屬公司(香港科技大學持續進修學院有限公司)均根據香港稅務條例第88條之規定獲豁免轍付稅項 因此不需作出撥備。 就其一未獲豁免擻稅之附屬公再作出香港利得稅撥備，撥備乃按本年度估計應計稅盈餘以16. 2009年: 16.5%) 計算。 本年度香港利得稅撥備2,400 本集團有關利得稅之計算稅項有別於採用集團本年度營運盈餘計算之稅率分析如下: 本年度營運所得盈餘 按稅率16.5% (2009 : 計算之稅項 無需課稅收入無需課稅支出其他差額3 ,117) 1,441 稅項 當累積稅項虧損有可能經未來應課盈利而帶來利益，集團才確認遞延稅項資產。本集團之附屬公司並沒有確認之遞延稅項資產為8，900，000元(2009年汀，600，000元) ，其來自累積虧細詣，500，000元(2009年: 30，000，000元)。該筆款項 將逐步於2015年前期間到期。 30. 比較數字 COMPARATIVE FIGURES 配合本年度的分類，綜合資產負債表、綜合現金流量表及註的某些比較數字己重 新分類。

31 Subsidiary At 30 June 2010, the University's principal subsidiaries were as follows: Subsidiary HKUST College of Lifelong Learning Limited HKUST Properties Limited Hong Kong University of Science and Technology Rand ('RDC') HKUST Rand D Corporation (Guangzhou) Limited HKUST Rand D Corporation (Shenzhen) Limited Guangzhou HKUST Fok Ying Tung Research Institute Place Country Of Incorporation Hong Kong Hong Kong Hong Kong People's Republic of China People's Republic of China People's Republic of China The HKUST Shenzhen Research Institute People's Republic of China Proportion of Nominal Value of Issued I Registered Capital Held by the University 100% Principal Activity To promote lifelong learning and continuing education. Dormant To engage in technology commercialisation including industrial licensing, incubation of start-up companies and research and technical services in the Pearl River Delta

To engage in basic scientific research, technology innovation and associated research and development activities, as well as training of management and advanced technology personnel.

Facilitation of the University's research and incubation activities in People's Republic of China. 附屬公司 SUBSIDIARIES 於2010年6月30 日，大學之主要做屬公司如下: 2010, 附屬公司 香港科技大學持續進修學院有限公司 香港科大地產有限公司 香港科大研究開發有限公司 廣州香港科大研究開發有限公司 港科大研究開發(深圳)有限公司 廣州市香港科大霍英東研究院 註冊地點/國家 香港 香港 中華人民共和國 中華人民共和國 香港科技大學深圳研究院 中華人民共和國 63 擁有股權 直接持有 間接待有 Direct Indirect 主要活動 推廣持續進修的課程。 不活動 致力於珠江三角洲地區把科技商 業化。包括工業合同、技術授 權、培育新公司及其它技術服 務。

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。 擔任聯絡人，協助科大在中華人 民共和國的教育、培訓、研究及 孕育活動等。