Financial Statements for the Year Ended 30 June 2011

Abstract

[evdate 2011-06-30] The Hong Kong University of Science and Technology Financial Statements For the Year ended 30 June 2011 香港科技大學 財務報表 截至2011年6月30日止年度 CONTENTS Treasurer's Report Independent Auditor's Report Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Fund Balances Consolidated Statement of Cash Flows Notes to the Financial Statements

TREASURER'S REPORT OVERVIEW Year 2010/11 was another successful year for HKUST. In its 20th Anniversary, the University continued to operate with a healthy surplus of $509 million ($421 million for 2009/10). The growth was mainly attributable to the notable increase in interest and investment returns to $343 million ($160 million for 2009/10), representing fair value gains of the restructured and enlarged investment portfolios. However, in the quarter to 30 September 2011, due to the volatility of world markets, the value of the University's investments declined by approximately $180 million reversing a large portion of the unrealised gains of $254 million recognised as at 30 June 2011. The investment market is expected to remain extremely volatile in the coming months. CONSOLIDATED INCOME AND EXPENDITURE Consolidated income for the year increased to $3,186 million ($2,950 million for 2009/10) mainly due to the above-mentioned higher investment returns as well as higher auxiliary and other income. Consolidated expenditure for the year rose to $2,681 million ($2,531 million for 2009/10). Increased spending was largely for the preparation for the planned increase in activities for the 4-year Undergraduate (UG) System in 2012, on-going research projects and contracts, as well as the upward general pay adjustment on salaries. 1 SEGMENT RESULTS University Grants Committee ('UGC') Block Grant-funded Activities While additional costs were incurred in preparation for the implementation of the 4-year UG System, a surplus of $61 million ($34 million for 2009/10) was recorded largely due to the exceptionally high investment returns noted above. The retained surplus kept under the reserve will be used for the increasing recurrent expenditure and strategic initiatives for the coming years. This will be critical to the success of HKUST given the reduced level of funding at 62.5% of the current student unit cost for the additional year under the 4-year UG system. Fund Raising Related Activities Extra investment returns and late allocation of the matching grant from the Government more than offseted the drop in donations, resulting in a higher surplus of $233 million for 2010/11 ($190 million for 2009/10). Self-Financing Continuing Professional Education Programs ('CPEP'), Research and Other Activities From year 2009, the HKUST College of Lifelong Learning started to curtail its activities and finally ceased all operations after September 2010. Self financing continuing professional education programs are now confined to taught postgraduate programs and executive courses organized by the University. It is expected that these self-financing CPEP will continue to grow at a steady pace. Together with other income from research activities, auxiliary services and investment returns, a surplus of $215 million was recorded ($197 million for 2009/10). 2 CAPITAL EXPENDITURE During the year, the extension to the existing academic buildings was completed and has been opened for use. Over the border, the HKUST Shenzhen IER (Industry, Education and Research) Building has also been completed, providing infrastructural support for academic and research collaborations with Mainland university and institutes in Shenzhen and the Pearl River Delta. Other construction projects, including the Lee Shau Kee Business Building, Institute for Advanced Study Academic Building, Additional teaching and research facilities, and three new student hostels are in progress. As at 30 June 2011, the total commitments for the approved construction projects and other capital items amounted to $1,975 million. Of which, $1,305 million will be supported by approved but yet to be received UGC grants, $93 million by pledged donations and the rest by HKUST's reserves and deferred income on hand. OUTLOOK After the successful go-live of the Enterprise Resources Planning system just before the start of the new academic year 2011/12, the University will continue to complete the transition to ensure the smooth operation of the double UG cohorts from 2012/13. With no signs of a new round of Matching Grant Scheme, and amidst the recent volatility in the stock markets caused by ongoing financial concerns in the United States and the eurozone countries, Management foresees challenges in fund raising activities and ability to have any significant income or gains in investment markets in the coming year. The University will remain prudent in its financial management and strive to maintain adequate reserves to provide ability for the University to invest in its future goals. John B. HARRISON Treasurer of the University 5 December 2011 3 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 (together, the 'Group') set out on pages 6 to 61, which comprise the consolidated balance sheet as at 30 June 2011, and the consolidated statement of comprehensive income, the consolidated statement of changes in fund balances and the consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. The Council's responsibility for the consolidated financial statements The Council of the University is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, and for such internal control as the Council determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. 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 you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. 4 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing' an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements give a true and fair view of the state of affairs of the Group as at 30 June 2011, and of the Group's results and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards. PricewaterhouseCoopers Certified Public Accountants 22nd Floor, Prince's Building Central, Hong Kong 5 December 2011 5 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011 Income Government Subventions and Grants Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Services and Other Income Transfers from Capital Reserves Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Surplus from operation for the year Notes 2011 $million 1,701 million 1,534 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Cont'd) FOR THE YEAR ENDED 30 JUNE 2011 Share of Result of an Associate Surplus for the year before taxation Taxation Surplus for the year after taxation Other comprehensive income for the year Unrealised gain on Available-for-Sale Financial Assets Recognition of gain realised on disposal of Available-for-Sale Financial Assets transferred from Investment Revaluation Reserve Transfer from Capital Reserves to consolidated statement of comprehensive income Exchange differences arising from retranslation Change in share of statutory reserves of an Associate Total comprehensive income for the year Transfers to I (from): Capital Reserves University Grants Committee ('UGC') Block Grant Reserves Donations and UGC Matching Grants Reserves Other Reserves Investment Revaluation Reserve 7 Notes million CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2011 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 2011 million 3,617 Non-Current Liabilities Provision for Staff Benefits NET ASSETS Capital Reserves UGC Block Grant Reserves CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30 JUNE 2011 Notes Donations and UGC Matching Grants Reserves Other Reserves Investment Revaluation Reserve TOTAL FUNDS Approved by the Council on 5 December 2011 John B. HARRISON Treasurer of the University Tony F. CHAN President 2011 $million Philip S.P. WONG Associate Vice-President for Administration and Business and Director of Finance CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES Donations Capital UGC Block Grants Other Revaluation Reserves Grant Reserve Total Funds $million (llMltt23) (llMltt24) (llMltt25) (llMltt26) (Note 23) (Note 24) (Note 25) (Note 26) 2010 Balance as at 1 July 2010 Total comprehensive income / (loss) for the year Surplus for the year after taxation (Note 11) Other Comprehensive Income Unrealised gain on Available-for-Sale Financial Assets Transfer to consolidated statement of comprehensive Income Exchange differences arising from retranslation Change in share of statutory reserves of an Associate (145) 61 236 218 3 373 Transfer from Deferred Income Inter-fund transfer in connection with capital expenditure (Notes 2.9/23) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets Amounts equivalent to depreciation and amortisation charges 53 10 (17) (46) 0 0 Balance as at 30 June 2011 The fund balances are classified according to the segment categories as shown in the Segment Income and Expenditure under Note 11. 10 CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) Donations Investment Capital UGC Block Grants Other Revaluation Reserves Grant Reserves Total Funds $million (Ilfftt26) (Note 23) (Note 24) (Note 25) (Note 26) Balance as at 1 July 2009 Total comprehensive income 1 (loss) for the year Surplus for the year after taxation (Note 11) Other Comprehensive Income Unrealised gain on Available-for-Sale Financial Assets Recognition of gain realised on disposal of Available for- Sale Financial Assets transferred to consolidated statement of comprehensive income Transfer to consolidated statement of comprehensive income Exchange differences arising from retranslation Change in share of statutory reserves of an Associate (144) 34 189 199 (22) 256 Transfer from Deferred Income Inter-fund transfer in connection with capital expenditure (Notes 2.9/23) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets Amounts equivalent to depreciation and amortisation charges 88 (20) (16) (52) 0 0 Other inter-fund transfer Balance as at 30 June 2010 11 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2011 Cash Flows from Operating Activities Surplus for the year before taxation Adjustments for: Depreciation and Amortisation Loss on disposal of Property, Plant and Equipment Interest and Investment Income Amortisation of premium on Held-to-Maturity Financial Assets Share of results of an Associate Transfers from Capital Reserves Operating cash flow before movement in working capital Increase in Accounts Receivable and Prepayments (Decrease) / Increase in Accounts Payable and Accruals Increase in Deferred Income Increase / (Decrease) in Provision for Staff Benefits Net Cash Generated from Operating Activities 12 2011 $million CONSOLIDATED STATEMENT OF CASH FLOWS (Cont'd) FOR THE YEAR ENDED 30 JUNE 2011 Cash Flows from Investing Activities Payment for purchase of Property, Plant and Equipment Payment for purchase of Intangible Assets Decrease / (Increase) in Bank Deposits with Original Maturity over Three Months Purchase of Held-to-Maturity Financial Assets Purchase of Financial Assets at Fair Value through Profit or Loss Proceeds from redemption of Held-to-Maturity Financial Assets Proceeds from sale of Available-for-Sale Financial Assets Interest and investment income received Net Cash Used in Investing Activities Cash Flows from Financing Activities Subventions and Grants or donations received for purchase of Property, Plant and Equipment 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 2011 $miIlion NOTES TO THE FINANCIAL STATEMENTS

14 GENERAL INFORMATION The Hong Kong University of Science and Technology is incorporated under The Hong Kong University of Science and Technology Ordinance (Chapter 1141, Laws of Hong Kong) as a technological university dedicated to the advancement of learning and scholarship, with special emphasis on research, postgraduate education, and close collaboration with business and industry. The principal activities and other particulars of the University's subsidiaries are set out in note 30. The registered address and principal place of operation is Clear Water Bay, Hong Kong. These financial statements are presented in Hong Kong dollars ('HKD'), which is the Group's presentation currency. These financial statements have been approved for issue by the Council on 5 December 2011. PRINCIPAL ACCOUNTING POLICIES The principal accounting policies applied in the preparation of the financial statements of the University and its subsidiaries (the 'Group') are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 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 convention, 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. 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 a 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 2011, the Group has adopted the following amendments to HKFRS that are effective and relevant to the operations of the Group. HKAS 32 (Amendment) HK-Interpretation 5 HKFRSs (Amendments) Financial Instruments: Presentation Presentation of Financial Statements - Classification by the Borrower of a Term Loan that contains a Repayment on Demand Clause Annual Improvements to certain HKFRSs published in May 2009 HKAS 1 (Amendment) HKAS 7 (Amendment) HKAS 18 (Amendment) HKAS 36 (Amendment) HKAS 39 (Amendment) Presentation of Financial Statements Statement of Cash Flows Revenue Impairment of Assets Financial Instruments: Recognition and Measurement Annual Improvements to certain HKFRSs published in May 2010 HKAS 27 (Amendment) HKFRS 3 (Amendment) 15 Consolidated and Separate Financial Statements Business Combinations 2.1 2.1 Basis of Preparation (Cont'd) The Group has assessed the impact of the adoption of these amendments and interpretation 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. (b) Standards, interpretations and amendments published that are not yet effective The Group has not early adopted the following new and revised standards, amendments, and interpretations which have been issued and are relevant to its operations but are not yet effective, in these financial statements:- HKAS 1 (Amendment) HKAS 19 (Amendment) HKAS 24 (Revised) HKAS 27 (2011) HKAS 28 (2011) HKFRS 7 (Amendment) HKFRS9 HKFRS 10 HKFRS 11 HKFRS12 HKFRS 13 Presentation of Financial Statements3 Employee Benefits 4 Related Party Disclosures Separate Financial Statements4 Investments in Associates and Joint Ventures 4 Financial Instruments: Disclosures2 Financial Instruments 4 Consolidated Financial Statements 4 Joint Arrangements4 Disclosure of Interests in Other Entities 4 Fair Value Measurement4 Annual Improvements to certain HKFRSs published in May 2010 HKAS 1 (Amendment) 16 Presentation of Financial Statements 1 NOTES TO THE FINANCIAL STATEMENTS 2.1 2.1 Basis of Preparation (Cont'd) (b) (c) Standards, interpretations and amendments published that are not yet effective (Cont'd) HKFRS 7 (Amendment) HK(IFRIC) - Int 13 (Amendment) Financial Instruments: Disclosures l Customer Loyalty Programmes I Effective for accounting periods beginning on or after 1 January 2011 Effective for accounting periods beginning on or after 1 July 2011. Effective for accounting periods beginning on or after 1 July 2012. Effective for accounting periods beginning on or after 1 January 2013. 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. (c) Financial statements for the University have been prepared separately. NOTES TO THE FINANCIAL STATEMENTS 2.2 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 indirectly, 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 disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All significant 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 associate, less any impairment loss. 2.4 2.5 NOTES TO THE FINANCIAL STATEMENTS 19 Interest in an Associate (Cont'd) Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates. Unrealised 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 control, that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. A joint venture arrangement that involves the establishment of a separate entity in which 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 further 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. 2.6 NOTES TO THE FINANCIAL STATEMENTS 20 Recognition of Income (a) Government subventions and grants containing a condition for refund of any unspent balance The amounts 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: (i) in respect of the recurrent block grant: all grants, 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 met, 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. (ii) in respect of subventions and grants intended for other expenditure: amounts equivalent to the expenditure incurred during the year are transferred to the consolidated statement of comprehensive income. (iii) in respect of subventions and grants intended for capital expenditure: Amounts incurred in relation to capital expenditure on related property, plant and equipment as well as intangible assets are transferred to the Capital Reserves. Subsequently, each year, an amount equivalent to the depreciation charges of the related property, plant and equipment, amortisation charges of the intangible assets and net gain or loss of disposed items are transferred from the Capital Reserves to the consolidated statement of comprehensive income. (b) Government grants without a condition for refund of any unspent balance Amounts are recognised as income when received or receivable. Any recognised but unspent income categorised by activity segments is transferred to the respective reserves as shown in Note 11. 2.6 NOTES TO THE FINANCIAL STATEMENTS 2.6 21 Recognition of Income (Cont'd) (b) Government grants without a condition for refund of any unspent balance (Cont'd) In respect of subsequent spending of the reserves on capital expenditure: (i) Amounts equivalent to the expenditure on property, plant and equipment or intangible assets are transferred out of the related reserves to the Capital Reserves. (ii) Each year, an amount equivalent to the depreciation charges for the related property, plant and equipment, amortisation charges for the intangible assets and net gain or loss of disposed items, which have been charged against the consolidated statement of comprehensive income thus reducing the respective reserves, are transferred back from the Capital Reserves to the respective reserves to reflect the reduction in value of the relevant fixed assets as well as to restore the respective reserve balances to the amount available for future use. (c) Donations The amounts are recognised as income when received or receivable. Any recognised but unspent income is transferred to the related reserves. In respect of subsequent spending of the reserves on capital expenditure, the same accounting policies as those stated in paragraphs 2.6(b)(i) & (ii) shall apply. Outstanding pledges are not recognised as income. Where the University does not have the ability to enforce a pledged donation, the donation is recognised when received. (d) Tuition fees, auxiliary services and rental income The amounts are recognised when services are provided. 2.6 NOTES TO THE FINANCIAL STATEMENTS 22 Recognition of Income (Cont'd) (e) Interest income Interest income from a financial asset is accrued on a time basis, by reference to the principal outstanding and at the interest rate applicable, which is the rate that exactly discount the estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount. if) Research contract income Income from contract research, 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 I 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 progress, 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. Annual depreciation is charged against the consolidated income and expenditure under the respective segments as shown in Note 11. 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, representing the difference between the sales proceeds and the carrying amount of that asset is first booked through the Capital Reserves and subsequently transferred to the consolidated statement of comprehensive income. 2.8 NOTES TO THE FINANCIAL STATEMENTS 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. Annual amortisation is charged against the consolidated income and expenditure under the respective segments as shown in Note 11. Computer software under development is not amortised until ready for use. Capital Reserves Property, plant and equipment as well as intangible assets are represented by the Capital Reserves. (a) Amounts equivalent to the expenditure on property, plant and equipment or intangible assets are transferred to the Capital Reserve from: (i) Deferred Income Account for items funded by government subventions and grants with a refund condition. (ii) retained balances of respective reserves for items funded by other government grants or donations or self-financing income. (b) Amounts equivalent to the depreciation charges for the related property, plant and equipment, amortisation charges for the intangible assets and net gain or loss of disposed item are transferred from the Capital Reserves to: (i) consolidated statement of comprehensive income for items funded by government subventions and grants with a refund condition. (ii) retained balances of respective reserves for items funded by other government grants or donations or self-financing income. NOTES TO THE FINANCIAL STATEMENTS 2.10 24 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 cunent 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 equivalents. Loans and receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. (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. 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 objective evidence that the asset is impaired, and is measured as the difference between the investment's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate at initial recognition. Impairment losses are reversed in subsequent periods· when an increase in the investment's recoverable amount can be related objectively to an event occurring after the recognition of the impairment loss, subject to the restriction that the carrying amount of the investment at the date the impairment is reversed shall not exceed what the amortised cost would have been had the impairment not been recognised. 2.10 NOTES TO THE FINANCIAL STATEMENTS 2.10 25 Financial Assets (Cont'd) (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 non-current assets unless management intends to dispose of the investments within 12 months of the balance sheet date. Regular way 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 financial assets are 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 impaired, the accumulated fair value adjustments are included in the consolidated statement of comprehensive income as gains and losses from investment. 2.10 2.11 2.12 2.13 NOTES TO THE FINANCIAL STATEMENTS 2.10 2.11 2.12 2.13 26 Financial Assets (Cont'd) (d) Available-for-sale financial assets (Cont'd) 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-sale, 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, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, 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 method, 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 flows, discounted at the effective interest rate. Accounts receivable in the consolidated balance sheet are stated net of such provision. 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. 2.14 2.15 2.16 2.17 (a) (b) NOTES TO THE FINANCIAL STATEMENTS 2.14 2.15 2.16 2.17 (a) (b) 27 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 date, 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 date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised 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 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. 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 2.19 NOTES TO THE FINANCIAL STATEMENTS 2.18 2.19 28 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. 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 resulting 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 recognised 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 closing rate at the date of that balance sheet. Income and expenditure for each statement of comprehensive income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at exchange rates at the dates of the transactions); and all resulting exchange differences are recognised as a separate component of equity. 3. 3.1 NOTES TO THE FINANCIAL STATEMENTS 3. 3.1 FINANCIAL RISK MANAGEMENT FINANCIAL RISK FACTORS The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management focuses on controlling the impact arising from unpredictability of 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) 3.1(a) Market risk 29 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 exchange rates, interest rates and stock prices. The Group is exposed to market risk mainly through the investment funds it holds. The Group's investments comprise equities, debt securities, 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 investments, and delegates the Finance Office of the University to manage fixed deposits and fixed income instruments. Foreign currency risk The Group is exposed to foreign currency risks primarily arising from its United States dollars ('usd') denominated equity, fixed income investments and real assets that are managed by fund managers. As HKD is pegged to the usd, 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 run, no hedging for non-usd currency 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 2011, the percentage of financial assets denominated in currencies other than HKD and usd to total financial assets was 2.7% (2010: 0.1 %).

NOTES TO THE FINANCIAL STATEMENTS 3. 3.1 (ii) (iii) FINANCIAL RISK MANAGEMENT (Cont'd) FINANCIAL RISK FACTORS (Cont'd) Interest rate risk 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 2011 would increase / decrease by approximately $9 million (2010: $16 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 in different markets, sectors and assets types. At 30 June 2011, if the prices of the respective investments had been 5% higher / lower, with all other variables held constant, the Group's surplus for the year would increase / decrease by approximately $84 million (2010: $44 million). 3.1 (b) Credit risk 30 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. The Group's credit risk is primarily attributable to its accounts receivable. The amounts represented in the consolidated balance sheet are net of allowances for doubtful receivable, estimated by the Group's management based on past experience and their assessment of the current economy. 3. 3.1 NOTES TO THE FINANCIAL STATEMENTS 3. FINANCIAL RISK MANAGEMENT (Cont'd) 3.1 FINANCIAL RISK FACTORS (Cont'd) 3.1(b) 3.1(b) Credit risk ( Cant/d) 3.2 Cash and cash equivalents and bank deposits are placed with counterparties with high credit-ratings assigned by international credit-ratings agencies. Held-to-maturity financial assets, financial assets at fair value through profit or loss and available-for-sale financial assets are rated investment grade or above. Investments outsourced 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 number of counterparties. The Group's maximum exposure to credit risk in the event of the counterparties' failure to perform their obligations as at 30 June 2011 and 2010 in relation to each class of recognised financial assets is the carrying amount of those assets as stated in the consolidated balance sheet. 3.1(c) Liquidity risk 3.2 31 Most of 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 Reserves, UGC Block Grant Reserves, Donations and UGC Matching Grants Reserves, Other Reserves and Investment Revaluation Reserve, which are set up for various designated purposes as described in notes 23 to 26. 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. NOTES TO THE FINANCIAL STATEMENTS 32 3. FINANCIAL RISK MANAGEMENT (Cont'd) 3.3 FAIR VALUE ESTIMATION The tables below provide an analysis of the Group's financial instruments that are measured at fair value in the consolidated balance sheet, grouped by level of the following fair value measurement: Quoted prices in active markets for identical assets or liabilities (level 1) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2) Inputs for the asset or liability that are not based on observable market data (level 3) As at 30 June 2011 Financial assets at fair value through profit or loss Available-for sale financial assets As at 30 June 2010 Financial assets at fair value through profit or loss Available-for sale financial assets Level l Level 2 Level 3 $million $million $million 1,160 496 0 18 0 593 278 0 15 Total $million 1,656 19 871 17 There were no transfers between level l and level 2 during the year ended 30 June 2011 (2010: Nil), There was no gain or loss recognised in the consolidated statement of comprehensive income for the level 3 assets held at the end of reporting period

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS 33 In determining the carrying amounts of some assets and liabilities, the Group makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. These estimates involve assumptions about such items as risk adjustment to cash flows or discount rates used, future changes in salaries and future changes in prices affecting other costs. The Group's estimates and assumptions are based on historical experience and expectations of future events and are reviewed periodically. In addition to assumptions and estimations of future events, 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 property, 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. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. Held-to-maturity financial assets Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity financial assets if the Group has the intention and ability to hold them until maturity. In evaluating whether the requirements to classify a financial asset as held-to-maturity are met, management makes 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. Judgement is required in assessing the ultimate realisation of these receivables, based on the current creditworthiness and the past collection history of each customer. If the financial conditions of debtors of the Group was to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. 5. GOVERNMENT SUBVENTIONS AND GRANTS UGC Block Fund Grant- Raising funded Related Research Other Activities Total $million Year 2011 UGC Subventions and Grants ilfttt22) 1,297 0 123 69 1,489 Recurrent Block Grant and Earmarked Grants (Note 22) Rates and Government Rent Refunds Matching Grants Grants from Government Agencies (Note 22) UGC Subventions and Grants Recurrent Block Grant and Earmarked Grants (Note 22) Rates and Government Rent Refunds 1,279 0 134 76 1,489 Grants from Government Agencies (Note 22) 6. TUITION, PROGRAMMES AND OTHER FEES UGC Block Fund Grant- Raising funded Related CPEP Activities Total $million Year 2011 344 4 328 676 Year 2010 329 1 320 650 35 7. INTEREST AND INVESTMENT INCOME 2011 2010 $million Interest income Realised gains and investment income on Available-for-Sale Financial Assets Change in fair value of Financial Assets at Fair Value through Profit or Loss 343 160 36 8. DONATIONS AND BENEFACTIONS 2011 2010 $million

Pledged Amounts Others Total Amounts Others Total (lIfiJtt25) <ilf'ttt25) (Note 25) (Note 25) Academic Activities and General Uses Scholarships and Bursaries Research and Other Projects (Note 22) 37 AUXILIARY SERVICES AND OTHER INCOME UGC Block Fund Grant- Raising funded Related CPEP Research Other Activities Total $million Year WI I Research Contract Residence Halls Rental Income Rental Contribution from Staff Services Fees, Workshop Income and Other Sponsorships Research Project Sponsorships (Note 22) Miscellaneous Year 2010 Research Contract Residence Halls Rental Income Rental Contribution from Staff Services Fees, Workshop Income and Other Sponsorships Research Project Sponsorships (Note 22) Miscellaneous 38 EXPENDITURE Depreciation Salaries and Operating and Benefits Expenses Amortisation Total $million Year 2011 Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Sub-total Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Sub-total Total Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Sub-total Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Sub-total Total Expenditure Included in Salaries and Benefits was a total sum of $130 million (2010: $129 million) representing the Group's contributions towards defined contribution retirement benefits schemes. 39 10.1 REMUNERATION OF HIGHER PAID STAFF Number of Employees 2011 2010 Annual Equivalent Remuneration HK$ 1,800,001 - 1,950,000 46 46 HK$ 1,950,001 - 2,100,000 24 23 HK$ 2,100,001 - 2,250,000 9 3 HK$ 2,250,001 - 2,400,000 10 7 HK$ 2,400,001 2,550,000 5 7 HK$ 2,550,001 - 2,700,000 .5 5 HK$ 2,700,001 - 2,850,000 2 3 HK$ 2,850,001 - 3,000,000 2 2 HK$ 3,000,001 - 3,150,000 0 1 HK$ 3,150,001 - 3,300,000 3 1 HK$ 3,300,001 - 3,450,000 ° 1 HK$ 3,450,001 - 3,600,000 2 1 HK$ 3,600,001 1 1 Remuneration includes salary, gratuity / contribution to retirement schemes, consultancy payments, 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. 40 CONSOLIDATED INCOME AND EXPENDITURE BY SEGMENT Income Government Subventions and Grants Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Services and Other Income Transfers from Capital Reserves Overhead Recovery I Inter-segment Income Expenditure Salaries Other Operating expenses Depreciation and Amortisation Overhead Recovery I Inter-segment Expenditure UGC Block Grant funded Activities $million Fund Raising Related Activities $million Other Non-Block Grant CPEP Activities $million Research Activities $million 2011 Other Activities 6 Total $million 1,613 873 195 123 Inter-segment Transaction (123) Net Total $million Share of Result of an Associate Surplus for the year before taxation Taxation Surplus for the year after laxation Note: UGC Block Grant - funded Activities Other Non-Block Grant Fund Raising Related Activities $million 32 51 48 CPEP Activities $million Research Activities $million 76 Other Activities $million 26 73 (2) o 24 73 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. 41 Total $million Inter-segment Transaction Elimination $million Net Total $million A piece of land situated at Shenzhen of approximately 7,437 square meters was granted at a nominal amount to HKUST R&D Corporation (Shenzhen) Limited, a subsidiary of the Group, 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 or over the remaining lease term

INTANGIBLE ASSETS COST Balance as at 30 June 2009 Additions Disposals Balance as at 30 June 2010 Additions Balance as at 30 June 2011 AMORTISATION Balance as at 30 June 2009 Provided for the year Disposals Balance as at 30 June 2010 Provided for the year Balance as at 30 June 2011 NET BOOK VALUE Balance as at 30 June 2011 Balance as at 30 June 2010 Computer software is amortised on a straight-line basis at 25% per annum. Computer Software $million As at 30 June 2011, approximately $43 million (2010: $30 million) of computer software costs are under development. 43

FINANCIAL ASSETS 2011 $million Held-to-Maturity Financial Assets, at amortised cost Listed Unlisted Maturing within one year Maturing after one year Available-for-Sale Financial Assets Unlisted Fixed Income 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 (Note a) Unlisted Fixed Income Funds (Note a) Unlisted Real Assets Funds (Note a) Financial assets are mainly denominated in Hong Kong dollars and United States dollars. Notes: The fair value was determined by reference to bid prices quoted in active markets or by fund managers. 2010 $million The unlisted available-for-sale equity securities at cost represent an 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. 44 INTEREST IN AN ASSOCIATE Share of net assets Proportion of Nominal Value of Form of Business Structure Place of Incorporation I Issued Capital Associate PKU-HKUST Shenzhen-Hong Kong Institution Institutional Organization Principal Place Directly Held by of Operation the Group People's Republic of China 33% 33% The summarised financial information in respect of the associate is set out below: Total assets Total liabilities Net assets Group's share of net assets of the associate Turnover Profit for the year Group's share of results of the associate for the year 45

Class of Shares Held Capital Contribution 2011 si9t5G $million 57 2010 si9t5G $million 52 To engage in technology commercialization, incubation of start-up companies, provision of research and technology management services, training of senior management and administrative executives. 2011 $million 2010 $million INTEREST IN A JOINT VENTURE Share of net assets (Note) Name of Entity Zhejiang Advanced Manufacturing Institute of HKUST Co. Ltd. ('ZAMI') Form of Business Structure Sino-foreign joint venture Country of Incorporation / and Operation People's Republic of China Proportion of Nominal Value Class of Capital Held by Shares Held the Group Capital contribution 2011 $million 9 Percentage of Voting Power of the Board 60% 2010 13.Je $million Nature of Business 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. However, under the memorandum and articles of association and shareholders' agreement of ZAMI, all significant events including financial and operating policies must be mutually agreed by the Group and the other significant shareholder. Therefore, ZAMI is classified as a jointly controlled entity of the Group. Note: The Group's share of losses exceeded its interest in the joint venture and the Group does not have obligation to make up the losses. 46 17. ACCOUNTS RECEIVABLE AND PREPAYMENTS Prepayments and Deposits Accounts Receivable Accounts receivable are repayable on demand. 2011 $million 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.

The accounts receivable are mainly denominated in Hong Kong dollars. 47 CASH AND CASH EQUIVALENTS Bank Deposits with Original Maturity within Three Months Cash at Banks and in Hand 2011 $million 872 $million The carrying amounts of the cash and cash equivalents are denominated in the following currencies: HK$ Euro RBM US$ Others 19.ACCOUNTS PAYABLE AND ACCRUALS Accounts Payable and Accruals 2011 $million 2011 $million 323 The accounts payable and accruals are mainly denominated in Hong Kong dollars. 48 2010 $million

$million 302 20. PROVISION FOR STAFF BENEFITS 2011 2010 $million Gratuities Leave Pay and Others

Payable: Within 1 year After 1 year 49 21. CATEGORIES OF FINANCIAL INSTRUMENTS 2011 2010 $million Financial Assets Loans and Receivables Accounts receivable and deposits Bank deposits Cash and cash equivalents Available-for-Sale Financial Assets Financial Assets at Fair Value through Profit or Loss Held-to-Maturity Financial Assets Financial Liabilities Other Financial Liabilities at Amortised Cost Accounts Payable and Accruals 50 22. DEFERRED INCOME UGC Grants from Subventions Government and Grants Agencies Donations Sponsorships Total $million Balance as at 30 June 2009 Amount received / receivable Pledged Donations (Note 25) Others Credited to consolidated statement of comprehensive income (Notes 5, 8 and 9) Transfer to Capital Reserves (Note 23) Balance as at 30 June 2010 Amount received / receivable Pledged Donations (Note 25) Others Credited to consolidated statement of comprehensive income (Notes 5, 8 and 9) Transfer to Capital Reserves (Note 23) Balance as at 30 June 2011 51 23. CAPITAL RESERVES Property, Plant and Equipment Funded by Intangible Assets Funded by Total Government Subventions and Subventions and Subventions and Grants or Grants or Grants or Specific Donations Others Total Donations Others Total Donations Others Total $million (IlftttI2) (1lf1tt13) (Note 12) (Note 13) Balance as at 1 July 2009 6/2.9) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets transferred from: (Notes 2.6/2.9) Deferred Income (Note 22) UGC Block Grants Reserves (Note 24) Donations and UGC Matching Grants Reserves (Note 25) Other Reserves (Note 26) Amounts equivalent to depreciation and amortisation charges transferred to: (Notes 2.6/2.9) Consolidated Statement of Comprehensive Income UGC Block Grants Reserves (Note 24) Donations and UGC Matching Grants Reserves (Note 25) Other Reserves (Note 26) Amounts equivalent to net loss of disposed items transferred to: (Notes 2.6/ 2.9) Consolidated Statement of Comprehensive Income Exchange differences arising from retranslation Balance as at 30 June 2010 Net Transfer from: UGC Block Grants Reserves (Note 24) 20 0 20

Donations and UGC Matching Grants Reserves (Note 25) 16 0 16 Other Reserves (Note 26) 52 0 52 52 23. CAPITAL RESERVES (Cont'd) Property, Plant and Equipment Funded by Intangible Assets Funded by Total Government Subventions and Subventions and Subventions and Grants or Grants or Grants or Specific Donations Others Total Donations Others Total Donations Others Total $million (1lI1ttI2) (1lI1tt13) (Note 12) (Note 13) Balance as at 1 July 2010 Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets transferred from: (Notes 2.6/2.9) Deferred Income (Note 22) UGC Block Grants Reserves (Note 24) Donations and UGC Matching Grants Reserves (Note 25) Other Reserves (Note 26) Amounts equivalent to depreciation and amortisation charges transferred to: (Notes 2.6/2.9) Consolidated Statement of Comprehensive Income (20) UGC Block Grants Reserves (Note 24) Donations and UGC Matching Grants Reserves (Note 25) Other Reserves (Note 26) Exchange differences arising from retranslation Balance as at 30 June 2011 Net Transfer from 1 (to): UGC Block Grants Reserves (Note 24) (10) 0 (10) Donations and UGC Matching Grants Reserves (Note 25) 17 0 17 Other Reserves (Note 26) 46 0 46 53 UGC BLOCK GRANT RESERVES Research General and Projects and Development Others Reserve Total $million Balance as at 30 June 2009 Total comprehensive income / (loss) for the year Transfer from / (to) Capital Reserves (Notes 2.9 / 23) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets Amounts equivalent to depreciation and amortisation charges Balance as at 30 June 2010 Total comprehensive income for the year Transfer from / (to) Capital Reserves (Notes 2.9 / 23) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets Amounts equivalent to depreciation and amortisation charges Balance as at 30 June 2011 54 DONATIONS AND UGC MATCHING GRANTS RESERVES Endowment Designated Unspecified Total $million Balance as at 30 June 2009 Total comprehensive income for the year Surplus for the year Exchange differences arising from retranslation Transfer from / (to) Capital Reserves (Notes 2.9 / 23) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets Amounts equivalent to depreciation and amortisation charges Other inter-fund transfer (Note 26) Balance as at 30 June 2010 Total comprehensive income / (loss) for the year 23: I Surplus / (Deficit) for the year Exchange differences arising from retranslation Transfer from / (to) Capital Reserves (Notes 2.9/23) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets Amounts equivalent to depreciation and amortisation charges Other inter-fund transfer Balance as at 30 June 2011 DONATIONS AND UGC MATCHING GRANTS RESERVES (Cont'd) Information on pledged donations Donations for Capital for Other Projects Activities Total $million $million $million Outstanding amount as at 30 June 2009 Amount received during the year recognised in consolidated statement of comprehensive income (Note 8) Amounts received during the year credited to Deferred Income (Note 22) New outstanding pledges Outstanding amount as at 30 June 2010 Amount received during the year recognised in consolidated statement of comprehensive income (Note 8) Amounts received during the year credited to Deferred Income (Note 22) New outstanding pledges Outstanding amount as at 30 June 2011 56 OTHER RESERVES Balance as at 30 June 2009 Total comprehensive income for the year Surplus for the year Exchange differences arising from retranslation Change in share of statutory reserves of an Associate Transfer from / (to) Capital Reserves (Notes 2.9/23) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets Amounts equivalent to depreciation and amortisation charges Other inter-fund transfer (Note 25) Balance as at 30 June 2010 Total comprehensive income for the year Surplus for the year Exchange differences arising from retranslation Change in share of statutory reserves of an Associate Transfer from / (to) Capital Reserves (Notes 2.9/23) Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets Amounts equivalent to depreciation and amortisation charges Balance as at 30 June 2011 $million 27. 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 year, the Group has entered into the following transactions with related parties: Transactions with an Associate Rental paid to an Associate Key management personnel compensation Salaries and other short-term employee benefits Post employment benefits 58 2011 $million 2010 28. COMMITMENTS 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: Amounts to be financed by the Group's Resources Amounts recognised as Income and retained as UGC Block Grant Reserves Other amounts representing other reserves to be allocated Amounts received and reflected as deferred income Amounts in respect of UGC Grants approved but not yet received Amounts pledged by donors Operating Lease Commitments 2011 $million

As at 30 June, the Group had future aggregate minimum lease payments under non cancellable operating leases payable as follows: In one year In the second to fifth years inclusive As at 30 June, the Group had future aggregate minimum lease income under non cancellable operating leases as follows: In one year In the second to fifth years inclusive 2011 $million 2011 $million 2010 $million 2010 29. TAXATION No taxation is provided for the operation of the University and a subsidiary, 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% (2010: 16.5%) on the estimated assessable surplus for the year. Provision for Hong Kong profits tax 2011 $million 2010 $million 2 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: 2011 2010 $million Surplus from operation for the year Tax calculated at a tax rate of 16.5% (2010: 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 taxable profits is probable. The subsidiaries of the Group have not recognised deferred income tax assets of approximately $11.9 million (2010: $8.9 million) in respect of cumulative losses amounting to approximately $46.5 million (2010: $35.5 million). The tax losses will expire on various dates up to 2016. 60 SUBSIDIARIES At 30 June 2011, the University's principal subsidiaries were as follows: Subsidiary HKUST College of Lifelong Learning Limited (Note) HKUST Properties Limited Hong Kong University of Science and Technology Rand D Corporation Limited HKUST Rand D Corporation (Guangzhou) Limited HKUST Rand D Corporation (Shenzhen) Limited Guangzhou HKUST Fok Ying Tung Research Institute The HKUST Shenzhen Research Institute Place / Country Incorporation Hong Kong Hong Kong Hong Kong People's Republic of China People's Republic of China People's Republic of China People's Republic of China Note: The subsidiary became dormant in October 2010. 61 Proportion of Nominal Value of Issued / Registered Capital Held by the University Direct Indirect 100% Principal Activity To promote lifelong learning and continuing education. Dormant

To engage in technology commercialisation including industrial contracting, licensing, incubation of start-up companies and research and technical services in the Pearl River Delta Area.

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 education, training, research and incubation activities in the People's Republic of China

目錄 CONTENTS 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 的 Consolidated Statement of Cash Flows 財務報表附註 14 - 61 Notes to the Financial Statements 司庫報告 TREASURER'S REPORT 概況 2010/11年度是香港科技大學成功圓滿的另 一年。踏進20週年，大學於509，000，000元 穩健的盈餘下(2009/10年度為421 月00，000元) 持續運作。該盈餘主要來自大幅增長的利 息及投資回報343 ，000，000元(2009/10年度為 160，000，000元) ，為重組及擴大投資組合後 的公允值盈利。但在截至2011年9月30 日這 一季，由於環球市場的波動，大學投資的 價值下降約180，000，000元，於2011年6月30 日巴確認的末實現盈利共254月00，000元， 其大部分被通向鉤銷。預計投資市場於未 來數月持續極度反覆。 綜合收入及開支 基於上述較高的投資回報以及輔助及其他 收入所得，年度綜合收入增至3 ， 186，000，000 7(2009/1O年度為2，950，000，000元)。 本年度綜合開支增至2，681 月00，000 元 (2009/10年度為2，531 ，000，000元)。增加的開 支主要用作準備2012年四年新學制而增加 的活動、進行中的研究項目及合約、以及 一般的薪金上升調整。 1 分部結果 教育資助(委員會)整筆撥款資助活動 雖然開支因準備實施四年新學制而增加， 但仍圍上文提及的異常高的投資回報而錄 得61 ，000，000 元盈餘(2009/1 0 年度為 抖，000，000元)。此盈餘將保留在儲備中， 用作支付來年持續增長的日常支出及策略 措舉。由於四年新學制下額外年度的資助 撥款僅為現時學生單位成本之62.5% '該等 盈餘對香港科技大學的成功其關鍵作用。 籌募及有關活動 由於額外的投資回報及遲發放的政府配對 撥款高於捐款下降幅度，因此2010/11年度 錄得233 ，000，000元的龐大盈餘(2009/10年度 為190，000，000元)。 持續進修教育活動，研究活動及其他活動 自2009年，香港科技大學持續進修學院已 開始縮減其日常活動，直至2010年9月後全 面停止運作。自負盈虧的持續進修教育課 程現時只局限於大學舉辦的研究生修課課 程及行政課程。預期此類自負盈虧的持續 進修教育課程將繼續穩步發展。加上其他 研究活動、輔助服務及投資回報收入，共 錄得215 ，000，000 元盈餘(2009/10 年度為 197 ，000，000元)。 2 資本支出 年中，現有學術大樓巳完成擴建並開放使 用。此外，於邊界另一邊，科大深圳產學 研大樓亦已竣工，為大學與位於深圳及珠 江三角洲的國內大學及機構之間的學術及 研究合作提供基礎設施。其它進行中的建 築項目還包括:李兆基商學大樓、科大高 等研究院學術大樓、新增教學及研究設施 及三棟新建學生宿舍。 於2011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1 ，975 ，000，000元。 當中， 1 ，305 ，000，000元來自己獲批准但未收 之教資會撥款，的，000，000元來自承諾捐款 ，其餘來自大學現有儲備及遞延收益。 展望 在2011/1 2新的學術年度開始之際，企業資 源計劃系統成功啟用。大學將繼續完成過 渡安排，以確保從2012/13年度開始的雙組 本科生能順利並行運作。 新一輪的配對撥款計劃暫無消息、，加上憂 慮美國及歐元區國家財務狀況而導致近期 股票市場大幅波動，管理層預期來年將要 面對資金籌募及於投資市場獲取可觀的收 入或收益的挑戰。大學將繼續貫徹嚴謹的 理財政策，竭力保持足夠的儲備讓大學有 能力應付其未來目標的投放所需。 大學司庫 夏理遜 2011年12月5 日 3 獨立核數師報告 INDEPENDENT AUDITOR'S REPORT 致:香港科技大學校董會 本核數師(以下簡稱「我們 )已審計列載於第6 至61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2011年6月30 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資料。 校董會就綜合財務報表須承擔的責任 貴校葦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綜合財務報表，以令綜合 財務報表作出其實而公平的反映，及落實其認 為編製綜合財務報表所必要的內部控制，以使 綜合財務報表不存在由於欺詐或錯誤而導致的 重大錯誤陳述。 核數師的責任 我們的責任是根據我們的審計對該等綜合財務 報表作出意見，並僅向校董會(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 我們已根據香港會計師公會頒佈的香港審計準 則進行審計。該等準貝司要求我們遵守道德規範 '並規劃及執行審計，以合理確定綜合財務報 表是否不存在任何重大錯誤陳述。 審計涉及執行程序以獲取有關綜合財務報表所 載金額及披露資料的審計憑證。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 誤而導致綜合財務報表存在重大錯誤陳述的風 險。在評估該等風險時，核數師考慮與該公司 編製綜合財務報表以作出真實而公平的反映相 關的內部控制，以設計適當的審計程序，但目 的並非對公司內部控制的有效性發表意見。審 計亦包括評價校董會所採用會計政策的合適性 及作出會計估計的合理性，以及評價綜合財務 報表的整體列報方式。 我們相信，我們所獲得的審計憑證能充足和適 當地為我們的審計意見提供基礎。 意見 我們認為，該等綜合財務報表己根據香港財務 報告準則其實而公平地反映貴集團於2011年6 月30 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 香港中環 太子大廈22樓 2011年12月5 日 5 綜合全面收益表 截至2011年6月30 日止年度 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011 收入 Income 政府資助及撥款 Government Subventions and Grants 5 學費、課程及其他收費 Tuition, Programmes and Other Fees 6 利息及投資收入 Interest and Investment Income 7 外界捐款 Donations and Benefactions 8 輔助服務及其他收入 Auxiliary Services and Other Income 9 轉撥自資本儲備 Transfers from Capital Reserves 2.6/23 學術及研究 教學及研究 Instruction and Research 圖書館 Library 中央電腦設備 Central Computing 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 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 2011 百萬元 綜合全面收益表(續) 截至2011年6月30 日止年度 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOJ\l血(Cont'd) FOR THE YEAR ENDED 30 JUNE 2011 2011 2010 附詮百萬克百萬元 Notes $million $million 所佔聯營公司的經營業績 Share of Result of an Associate 本年度稅前盈餘509 423 Surplus for the year before taxation 稅項29 O (2) Taxation 本年度稅後盈餘509 421 Surplus for the year after taxation 年內之其他全面收益 Other comprehensive income for the year 於可供出售財務資產末實現之盈利3 Unrealised gain on Available-for-Sale Financial Assets 出售可供出售財務資麗時被確認之實現盈利及O (23) 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 轉擅自資本儲備至綜合全面收益表2.9/23 (150) (145) Transfer from Capital Reserves to consolidated statement of comprehensive income 外幣換算之差額10 3 Exchange differences arising from retranslation 於聯營公司所佔法定儲備之變動(1) 年內全面收益總額373 256 Total comprehensive income for the year 轉撥至/(自) : Transfers to / (from): 資本儲備23 (145) (144) Capital Reserves 大學教育資助委員會( 教資會 )整筆撥款儲備24 61 34 University Grants Committee ('UGC') Block Grant Reserves 籌募及教賣會配對撥款儲備25 236 189 Donations and UGC Matching Grants Reserves 其他儲備26 218 199 Other Reserves 投資重估儲備3 (22) Investment Reserve 373 256 7 綜合資產負債表 2011年6月30 日 CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2011 非流動資產 Non-Current Assets 物業、機器及設備 Property, Plant and無形資產 Intangible Assets 持至到期日財務資產 Held-to-Maturity Financial Assets 可供出售財務資蔑 按公平值透過損益記賬之財務資產 Financial Assets at Fair Value through Profit or Loss 於聯營公司權益 Interest in an Associate 於合資企業權益 Interest in a Joint Venture 到期日超過一年之定期存款 Bank Deposits with Maturity Year 流動資產 Current Assets 持至到期日財務資產 Held-to-Maturity Financial Assets 存貨 Inventories 應收帳款及預付款項 Accounts Receivable and payments 原到期日超過三個月之定期存款 Bank Deposits with Original Maturity Three Months 現金及等問現金 Cash and Cash Equivalents 流動負債 Current Liabilities 應付員長款及應計費用 Accounts Payable and Accruals 教職員福利撥備 Provision for 8taff Benefits 遞延收益 Deferred Income 應付稅項 Tax Payable 流動資產淨值 Net Current Assets 資產總值減流動負債 Total Assets Less Current Liabilities 8 附註

2011 百萬元 $million 2010 百萬元 $million 3,459 綜合資產負債表(續) 2011年6月30 日 CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30 JUNE 2011 2011 2010 附註百萬元百萬元 Notes $million $million 非流動負債 Non. Current Liabilities 教職員福利撥備20 14 12 Provision for Staff 資產淨值 NET ASSETS 資本儲備23 3,664 3,494 Capital Reserves 教資會整筆撥款儲備24 1,110 1,039 UGC Block Grant Reserves 籌募及教資會配對撥款儲備25 2,135 1,916 Donations and UGC Matching Grants Reserves 其他儲備26 1,130 958 Other Reserves 投資重估儲備5 2 Investment Revaluation Reserve 資金總額8,044 7,409 TOTALFUNDS 校董會於2011年12月5 日核准本財務報表 Approved by the Council on 5 2011 夏理遜 大學司庫 陳繁昌 校長 黃世邦 協理副校長(行政)及財務處處長 John B. HARRISON Treasurer of the University Phi1ip S.P. WONG Associate Vice-President for Administration and Business and Director of Finance 9 綜合資金變動表 CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES 2010年7月1 日之結餘 Balance as at 1 July 2010 年內全面收益1 (虧絀)總額 Total comprehensive income 1 (loss) for the year 本年度稅後盈餘(附註11) Surplus for the year after taxation (Note 11) 其他全面收益 Other Comprehensive Income 於可供出售財務資產末實環之盈利 Unrealised gain on Available-for-Sale Financial Assets 轉限至綜合全面收發表 Transfer 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 轉撥自遞延收益 Transfer from Deferred Income 與資本支出有關之資金轉撥。付詮2.9/23) Inter-fund transfer in connection with capital expenditure (Notes 2.9/23) 相當於添置物榮、機器及設備及無形資產之款項 Amounts equivalent to additions to Property, Plant and Equipment and Intangible Assets 相當於折舊及攤銷之款項 Amounts equivalent to depreciation and amortisation charges 2011年6月30日之結餘 Balance as at 30 June 2011 資本儲備 Capital Reserves 百萬元 (附註23) (Note 23) 3,494 教資會整筆撥款 儲備 Grant Reserves 百萬元 $million (附註24) (Note24) 1,039 籌募及教資會 配對撥款儲備 Donations and UGC Matching Grants Reserves 百萬元 $million (付註25) 其他儲備 Other Reserves 百萬元 $million (附註26) (Note26) 1,916 投資重估儲備 Investment Revaluation Reserve 百萬元 $million 958 資金總額 百萬元 資金結餘是依據分部收支報表肉之歸類，主主概述於咐註11 0 The fund balances are c1assified according to the segment categories as shown in the Segment Income and Expenditure under Note 11.

綜合資金變動表(續) CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) 籌募及教資會 配對撥款儲備 Donations 教資會整筆撥款儲備 投資重估儲備 資本儲備Matching 其他儲備Investment Capital UGC Block Grants Other Revaluation 資金總額 Reserves Grant Reserves Total Funds 百萬元 $million (附註23) (附註24) (間我主25) (附詮26) (Note 23) (Note 24) (Note25) (Note 26) 2009年7 月1 日之結餘3,324 1,025 1,757 797 24 6,927 Balance as at 1 July 2009 年內全面收益/(虧絀)總額 Total comprehensive income 1 (loss) for the year 本年度稅後盈餘(約詮11) 其他全面收直在 Other Comprehensive Income 於可供出售財務資產末實現之盈利 出售可供出售財務資產時確認之實現盈利及轉撥至綜合全面收益表 Recognition of gain realised on disposal of Avai1ablefor- Sale Financial Assets transferred to consolidated statement of comprehensive income 轉賬至綜合全面收益表(145) Transfer 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 (144) 34 189 199 (22) 256 轉撥自遞延收益 Transfer from Deferred Income 與資本支出有關之資金轉撥(的詮2.9/23) Inter-fund transfer in connection with expenditure (Notes 2.9/23) 相當於添置物業、機器及設備及無形資產之款項126 (36) (22) (68) equivalent to additions to Property, Plant and Equipment and Intangible Assets 相當於折舊及撥銷之款項(38) Amounts equivalent to depreciation and amortisation charges 其他資金轉撥Other inter-fund transfer 2010年6月30日之結餘3,494 1,039 1,916 958 2 7,409 Balance as at 30 June 2010 11 綜合現金流動表 截至2011年6月30 日止年度 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2011 2011 百萬元 $million 營運活動之現金流量Cash Flows from Operating activities 本年度稅前盈餘509 Surplus for the year before taxation 調整: Adjustments for: 折舊及攤銷195 Depreciation and Amortisation 出售物業、機器及設備之虧損 Loss on disposal of Plant and Equipment 利息、及投資收入(343) Interest and Investment Income 持至到期日財務資產溢價攤銷4 Amortisation of premium on Held-to-Maturity 所佔聯營公司的經營業績(4) Share of results of an Associate 轉撥自資本儲備(1 50) Transfers from Capital Reserves 未計運作資本之變動前之營運現金流量 應收帳款及預付款項之增加(94) Increase in Accounts and Prepayments 應付賬款及應計費用之(減少)/增加(24) (Decrease)in Accounts Payable and Accruals 遞延收益之增加5 Increase in Deferred 教職員福利撥備之增加/ (減少) 6 Increase / (Decrease) in Provision for Staff Benefits 營運活動淨現金流入104 Net Cash Generated from Operating Activities 12 2010 百萬元 $million 370 綜合現金流動表(續) 截至2011年6月30 日止年度 CONSOLIDATED STATEMENT OF CASH FLOWS (Cont'd) FOR THE YEAR ENDED 30 JUNE 2011 投資活動之現金流量 Cash Flows from Investing Activities 購買物業、機器及設備 Payment for purchase of Proper旬， Plant and Equipment 購買無形資產 Payment for purchase of Intangible 原到期日超過三個月之定期存款之減少/ (增加) Decrease / (Increase) in Bank Deposits with Original 購買持至到期日財務資產 Purchase of Held-to-Maturity Financial Assets 購買按公平值透過損益記賬之財務資產 Purchase of Financial at Fair Value through Profit or Loss 從持至到期日財務資產所得之贖回收入 Proceeds from redemption of to-Maturity Financial Assets 出售可供出售財務資產之收入 Proceeds from sale of Available-for-Sale Financial Assets 已收取之利息及投資收入 Interest and investment received 投資活動淨現金流出 Net Cash Used in Investing Activities 融資活動之現金流量 Cash Flows from Financing Activities 用以購買物業、機器及設備之資助及撥款或捐款收入 Subventions and Grants or donations received for purchase of Plant 融資活動浮現金流入 Net Cash Generated from Financing Activities 現金及等同現金之淨滅少 Net Decrease in Cash and Cash Equivalents 年初之現金及等同現金 Cash and Cash Equivalents at the Beginning of the Year 匯兌變動之影響 Effect of Foreign Exchange Rate Changes 年終之現金及等同現金 Cash and Cash Equivalents at the End of the Year 13 2011

2.1 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 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，為一 問科學技術的大學，專注促進學習及 學術'並特別在學術研究、研究生教 育方面加以重視，以及與商業和工業 界緊密合作。大學的附屬公司的主要 活動及其他事項詳列於附註30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 2011年12月5 日核准此財務報表刊發o 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。除其他說明外，該等政策於 所有里知之年度內，一直貫切地被採 用。 編制基準 本財務報表乃依據香港會計師公會頒 佈之香港財務報告準則所編制。 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 損益記脹財務資產之公平值重估而作 出修訂。 1. 2. 2.1 14 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 2.1 編制基準(續) 編制符合香港財務報告準則的財務報表 需要使用若干關鍵的會計估算，亦需要 管理層在應用集團會計政策的過程中運 用其判斷。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 作重要假設及估算的範疇，已於附註4中 披露。 (a) 採納新訂/經修訂香港財務報告準則 Adoption of new / revised HKFRS 截至2011年6丹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 For the year ended 30 June 20 日， the Group has adopted the following amendments to HKFRS that are effective and relevant to the operations of the Group. 香港會計準則第32號(修訂) HKAS 32 (Amendment) 香港詮釋第5號 金融工具:呈列 Financial Instruments: Presentation HK-Interpretation 5 財務報表之呈列一借款人對包含可隨時要求償還條款之 定期貸款之分類 Presentation of Financial Statements 間Classification by the Borrower of a Term Loan that contains a Repayment on Demand Clause 香港財務報告準則(修訂) HKFRS (Amendments) 香港財務報告準則之改進(頒佈9年5月) Annual Improvements to certain HKFRSs published in May 2009 香港會計準則第1號(修訂) HKAS 1 (Amendment) 財務報表的呈報 Presentation of Financial Statements 香港會計準則第7號(修訂) HKAS 7 (Amendment) 現金流量表 Statement of Cash Flows 香港會計準則第18號(修訂) HKAS 18 (Amendment) 收入 Revenue 香港會計準則第36號(修 HKAS 36 (Amendment) 香港會計準則第39號(修訂) HKAS 39 (Amendment) 金融工具:確認及計量 Financial Instruments: Recognition and Measurement 香港財務報告準則之改進(頒佈於2010年5 月) Annual Improvements to certain HKFRSs published in May 2010 香港會計準則第27號 HKAS 27 (Amendment) 合併及單獨財務報表 Consolidated and Separate Financial Statements 香港財務報告準則第3號(修 HKFRS 3 (Amendment) 企業合併 Business Combinations 15 2.1 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 編制基準(續) 本集團已評估上述修訂及詮釋後之影響 ，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列，均無任何 重大改變。 (b) 已公佈但未生效的準則、詮釋和修訂 Standards, interpretations and amendments published that are not yet effective 本集團於此財務報表並無提早應用以下已頒佈但尚未生效，並與其運作有關之新訂及經修訂準則、修訂或詮 釋。 香港會計準則第1號(修訂) 財務報表的呈報3 HKAS 1 (Amendment) Presentation of Financial Statements3 香港會計準則第19號(修訂) 員工福利4 HKAS 19 (Amendment) Employee Benefits 4 香港會計準則第24號(修訂) 關聯方披露l HKAS 24 (Revised) Related Party Disclosures1 香港會計準則第27號(2011) 獨立財務報表4 HKAS 27 (2011) Separate Financial Statements4 香港會計準則第28號(2011) 聯營公司及合營企業投資4 HKAS 28 (2011) Investments in Associates and Joint Ventures 香港財務報告準則第7號( 金融工具:披露2 HKFRS 7 (Amendment) Financial Instruments: Disclosures2 香港財務報告準則第9號金融工具4 HKFRS9 Financial Instruments 4 香港財務報告準則第10號合併財務報表4 HKFRS 10 Consolidated Financial Statements 4 香港財務報告準則第11號合營安排4 HKFRS 11 Joint Arrangements4 香港財路報告準則第12號其他實體利益披露4 HKFRS12 Disclosure of Interests in Other Entities 4 香港財務報告準則第13號公平值之計量4 HKFRS 13 Fair Value Measurement4 香港財務報告準則之改進(頒佈於2010年5 月) Annual Improvements to certain HKFRSs published in May 2010 香港會計準則第1號(修訂) HKAS 1 (Amendment) 16 財務報表的呈報l Presentation of Financial Statements 1 4 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 2.1 編制基準(續) 2.1 Basis of Preparation (Cont'd) (b) 已公佈但未生效的車則、詮釋和修訂(續) (c) Standards, interpretations and amendments published that are not yet effective (Cont'd) 香港財務報告準則第7號(修 HKFRS 7 (Amendment) 香港(國際財務報告解釋委員) -解釋公告13(修訂) HK(IFRIC) - Int 13 (Amendment) 於2011年1 月1 日或以後開始之年度期間生效。 金融工具:披露l Financial Instruments: Disclosures1 客戶忠誠度計劃l Customer Loyalty Programmes 1 Effective for accounting periods beginning on or after 1 January 201 1. 2 於2011年7 月1 日或以後開始之年度期間生效。 Effective for accounting periods beginning on or after 1 July 201 1. 3 於2012年7 月1 日或以後開始之年度期間生效。 Effective for accounting periods beginning on or after 1 July 2012. 4 於2013年1 月1 日或以後開始之年度期間生效。 Effective for accounting periods beginning on or after 1 January 2013. 管理層現正就以上新公佈之準則、修訂及詮釋對本集圍之影響作出評估，但尚未能說明會計政策及財務報表 之呈列會否出現重大變動。 大學之財務報表已另外編制。(c) 17 2.2 2.3 2.4 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 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、 有管治其財貓及營運政策權、有委任或 撤換其董事會大部分成員權力，或佔其 蓋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。 如有需要，會對附屬公司的財務報表作 出調整，使其會計政策與集團其他成員 公司所使用的會計政策保持一致。 集團內部所有重大交易及結餘均在綜合 眼內抵銷。 分部報告 集闇採用分部報告顯示主要收入來源及 相關的閱支，以更加清晰顯示運作之財 務結果。此分部報告乃自願性披露，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作 出調整，並扣除投資減值虧損入膜。 2.2 2.3 2.4 18 2.4 2.5 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 於聯營公司權益(續) 本集聞與其聯營公司之間交易的末實現 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滅值之憑 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，凡政策決 定涉及財務及營運上之策略，必須合資 各方決議一致通過。 共同控制實體是透過成立一值獨立機構 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。共同控制實體權益按成本值 列入綜合資產負債表，其後會就收購後 集團應佔共同控制實體之淨資產作出調 整，並扣除投資減值虧損入脹。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，除非本集團己代合資企業承 擔責任或作出付款。 本集團與其合資企業之間交易的末實現 收盤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。 2.4 2.5 19 2.6 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 收入確認 (a) 含退款條款的政府資助及撥款 當收到或應收取款項時，款項會先記入 遞延收益餵項，然後再由遞延收益脹項 依從以下方式轉攘: (i) 整筆經常撥款除準備用作資本 支出外，在符合有關未使用撥款 之條件下，所有當年已故取的撥 款將轉至綜合全面收益表內，除 非整筆撥款的累積盈餘超直是教資 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。 (ii) 用作其他開支的資助及撥款:等 同年內已產生開支之款額會轉至 綜合全面收益表內。 (iii) 用作資本開支的資助及撥款: 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 備脹內。 隨後，等同有關物業、機 器及設備的每年折舊費及 無形資產的攤銷費及出售 物件之淨收益或虧損會由 資本儲備轉入綜合全面收 益表內。 (b) 非含退款條款的政府撥款 款項在收取或應收時確認為收入。任何 根據活動分部分類的己確認但未使用的 收入己轉撥至如附註11所示的相關儲備 內。 2.6 20 2.6 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 放入確認(續) 非含退款條款的政府撥款 有關隨後為資本支出而使用儲備: (i) 等同物業、機器及設備或無形資 產的成本，將自有關儲備轉撥至 資本儲備。 (ii) 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 物件之淨收益或虧損(己於綜合全 面收盤表內計提，並把有關儲備 減低) ，由資本儲備按年四撥至有 關儲備，以反映相關固定資產之 減值及將相關儲備結餘回值更可 供未來使用之金額。 損款 款項在收取或應收時確認為收入。任何 已確認但未使用的收入己轉撥至相關儲 備內。有關隨後為資本支出而使用儲備 ，與如附註2后(b)(i)及(ii)所述相同之會計 政策將適用。 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款，在收到捐 款後才確認入眠。 (d)學費 輔助服務及租金收入 款項概於完成服務後確認入脹。 2.6 21 2.6 2.7 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 投入確認(續) 利息收入 財務資產的利息收入以時間基準按結存 金額及適用利率計算。適用利率即按財 務資產預計於可使用年期內收取之估計 未來現金款項折算至該資產脹面淨值之 利率。 研究合約收入 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脹;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，其收益將按已發生而 預期可收回的支出數額確認入賬。特許 權收入則在簽署特許權/專利時或在特許 權/專利生效期間以直線法計算確認入 賬。 物業、機器及設備 除在建工程外，物業、機器及設備按成 本值減累積折舊及累積減值後入賬。 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。年度折舊如附 註11 所示於相關分部之綜合收支內計 提。 在建工程按成本值減去任何己確認之減 值虧損入賬及至工程完竣後才攤銷折 舊。完竣工程成本將轉撥至適當之物 業、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。從資產刪除產生之收 接或虧損，相當於所得收款與該資產脹 面值的差額，先通過資本儲備記脹，再 其後轉撥至綜合全面收益表內。 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 2.8 無形資產 所購入電腦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 列脹。

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益表中扣除。 電腦軟件於備用年度內計算全年攤銷。 年度攤銷如附註11所示於相關分部之綜 合收支內計提。 開發中的電腦軟件在備用前並不計算攤 銷。 2.9 資本儲備 資本儲備反映物業、機器及設備及無形 資產。 (a) 等問物業、機器及設備或無形資 產的開支款額會轉撥至資本儲備 如下: (i) 遍延收益脹:以含退款條 款的政府資助及撥款購置 的項目。 (ii) 有關儲備的滾存結餘:以 其他政府撥款或捐款或自 負盈虧收入購麗的項目。 等同物業、機器及設備的折舊費、 無形資產的鞠肯費及出售物件之淨 收益或虧損由資本儲備轉撥至: 綜合全面收益表:以合退 款條款的政府資助及撥款 購置的項目。 (ii) 有關儲備的滾存結餘:以 其他政府撥款或捐款或自 負盈虧收入購置的項目。 23 2.10 財務報表附詮 財務資產 本集團將其財務資產投資分類如下:貸 款及應收款、持至到期日投資、按公平 值透過損益記脹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。 貸款及應收款 貸款及應肢款為有自定或可釐定付款且 沒有在活躍市場上報償的非衍生財務資 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 同現金項目名義列脹。貸款及應收款初 始按公允價值確認其後利用實際利率法 按攤銷成本剔除減值列脹。 (b) 持至到期日投資 持至到期日投資為有固定或可釐定付款 以及固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。 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 有客觀證據顯示資雇出現滅值虧損則於 綜合全面收益表中確認。獲確認之減值 乃根據投資之接回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 現己確認減值之投資可收回升值金額， 則將予以回攘，惟回撥後之眼面金額不 能多於此減值虧損之前已確認攤銷之成 本值。 2.10 24 2.10

財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 財務資產(續) (c)按公平值透過損益記賬之財政資產 此類別為開始時指定按公平值透過損益 記婊之財務資產，包括上市及非上市證 券及債券。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。 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 並無分類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。 常規投資買賣於交易日確認交易日指 本集團承諾買賣該資產之日期。按公平 值計入損益垠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盤表 支銷。所有其他財務資產初步按公平值 加交易費用確認。可供出售財務資產其 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，於權益中確認。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。 2.10 25

財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 財務資產(續) (d) 可供出售財務資產(續) 本集團在每個結算日評估是否有客觀證 據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，在釐定證券是否己經滅值時，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益表 記脹。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。 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，並扣除滅值撥 備計量。當有客觀證據證明本集團未能 按應收款的原有條款收回所有款項時， 即就應收款設定減值撥僑。撥備金額為 資產婊茁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。綜合資 產負債表內之應收接款為扣除該等撥備 後列賬。 應付賬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主初步按 公平值計算，日後按使用實際利率法計 算的己攤鋪成本列賬。 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。 2.10 2.11 2.12 2.13 26 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 2.14 撥備 集團因過往事件招致現行責任，可能需 要償還債務。在此情況下，集團需要撥 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。f尚屬重 大影響，以貼現現值計算。 2.15 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，集團會審查資產的帳面 值，確定資產有沒有出現減值虧損跡 象。若估計資產的可收回金額較脹面值 為低，則須將脹面值調低至可收回金 額。而所產生的減值虧損會即時確認在 綜合全面收盤表。 倘若所作出的滅值虧損於其後回撥，資 產的脹面{誼會調高至重估的可收回金額 ，惟調高後之可收回金額不可多於資產 於以前年度未有減值虧損的眼面值。所 回撥的減值虧損會即時確認為收入。 2.17 營運租約 (a) 集團為出租者 來自營運租約的租金收入在有關租約年 期內按直線基準確認。 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已收及應 收利益，亦按直線基準於有關租約年期 分攤。 2.14 2.15 2.16 2.17 27 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 2.18 退休福利開支2.18 Retirement Benefits Costs 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2.19 Foreign Currencies 本集團各實體的財務報表內所包括的項 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 財務報表以港幣呈列，而本集團的里報 貨幣均為港幣。 外幣交易乃按交易當日的現行匯率換算 為功能貨幣。因上述交易結算而產生的 匯兌損益，以及因按年終腫率兌換以外 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。 所有功能貨幣與呈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 算為里報貨幣: 資換 的率 間間 做間 讀間 接結 的的該 在熾 算儂 結負 各及 於麗算 各全面收益在表內的收入及開支均按平均 匯率換算(除非該平均率並非交易當日 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腫兌差額 確認為個別組成部分之權益。 28 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 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:如市場風臉(但括外匯 風險、利率風險及價格風險)、信貸風險及流動資金 風險。集團風險管理著重於控制因財務市場的不能預 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 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 管理定期存款及定息工具。 1 外匯風險 集團團對之外匯風險主要來自基金經理管理之美元計 值股票、固定收益投資及實物資產的組合。但因港元 與美元掛鉤，集團預期國港元與美元睦率變化而產生 之風險不大。 預期長遠而言貨幣波動對基金組合表現的影響較少， 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理政策進行檢討，必要時或會 進行對沖安排。 於2011年6 月30 日，以港元或美元以外計值的金繭資 產值約佔總金融資產值的2.7%(2010年為O.l%)。 3. FINANCIAL RISK MANAGEMENT 29 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 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。國 定期存款通常在三個月至六個月內到期，所以其風險 不高。假設其他可變動項目保持不變，倘利率上升 或下跌到個基點，集團之2011年6 月30 日止年度盈餘 會因定期存款利率變動而增加/減少約900萬元(2010 年為1 ，600萬元)。 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 的投資基食。證券價格風險會於不同市場、行業及資 產類別設定分散投資的方法來管理。於2011年6月30 日，若價格上升/下跌蹄，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8，400 萬元(2010年為4，400萬元)。 3.1(b) 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、 應收聽款、持至到期日財務資產、可供出售財務資產 及按公平值透過損益記脹財務資麗。 集團之借貸風險主要來自應收眼款o 於綜合資產負債 表內之金額為扣除呆脹準備後淨額，由集團管理層根 據過往經驗及經濟現況作出評估。 30 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 3. 財務風險管理(續) 3.1 財務風險因素(續) 3.1 信貸風險 現金及等同現金和定期存款，均存最於為國際信貸機 構給予高評級之對手方。持至到期日財務資產、按公 平值透過損益記脹財務資產及可供出售財務資產均評 為投資級別或以上。外判投資，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。 集團並無過度集中借貸風險，因擁有多名對手方，可 分散風險o 倘訂約各方於2010年及2011年6月30 日未能履行有關各 類巴確認金融資產之責任，則本集團之信貸風險最多 為於綜合資產負債表所示資產脹面值。 3.1流動資金風險 本集團的六部份負債到期日為結算日後半年內。管理 流動資金風險方面，本集團會監察及維持現金及現金 等值項目於充足的水平，以應付日常營運所需。 3.2 資本管理 集團的資金由資本儲備、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。集團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。 本集闡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。 財務報表附註 NOTES TO THE FINANCIAL STATEMENTS 3. 財務風險管理(續) 3.3 公平值估算 以下列表提供於綜合資產負債表按公平值計量之本集團金融工具 之分析，按下列公平值計量等級歸類: 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) 第一等級 百萬元 第二等級 百萬元 第三等級 百萬元 總計 百萬元年后何可日 按公平值透過 損直在記眼之財 務資產 可供出售財務 資產 於2010年6 阿30 日 按公平值透過 損益記帳之財 務資產 593 278 。871 可供出售財務 資產 15 17 截至2011年6月30 日止年度內並無第一等級與第三等級之間的轉撥 (2010 :無)。 年末所持有第三等級之資產並無任何盈利或虧損確認於綜合全面 收益表。 32 4. 主要會計估計及判斷 在釐定部分資產和負債的眼面金額時， 集團就不確定的未來事件對於資產負債 表日該等資產和負債的影響作出了骰 設。這些估計涉及對現金流暈風險調整 或貼現率、未來薪金變動和影響其他成 本的價格未來變動的假設。集團根據過 去的經驗和對未來事件的預計作出估計 和假設，並定期覆檢。除對未來事件的 假設和估計外，集團採用會計政黨時亦 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 理層會修訂其折舊或攤銷率。 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眠。沒有活躍市 場買賣的金融工具，其公平值根據既定 的估值技術釐定。本集團利用判斷選取 多種方法，並主要根據每個報告期末當 時的市場情況作出假設。 持至到期日財務資產 就持有的回定或可確定的付款和固定到 期日的非衍生金融資產，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。在評估某金融資麗 是否符合歸類為持至到期日投資的條件 時，管理層需要作出重大判斷。如果未 能對集團是否有意及有能力持有某特定 投資至到期日作出準確的判斷，可能會 導致整個投資組合需被重新歸類為可供 出售財務資產。 呆壞脹撥備 本集團之呆壞脹撥備政策是根據對收回 款項之可能性之評估、眼戶之騷齡分析 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 本集團債務人之財務狀況惡化，會損壞 其還款能力，因而有可能需要額外撥 備。 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS 33 5. 政府資助及撥款 GOVERNMENT SUBVENTIONS AND GRANTS Year2011 教資會資助及撥款 UGC Subventions and Grants 整筆經常撥款及指定撥款(附詮22) Recurrent Block Grant and Earmarked Grants (Note 22) 退還差的及地租 Rates and Government Rent R巴funds 配對撥款 Matching Grants 政府有關機構撥款(附註22) Grants from Government Agencies (Note 22) Year 2010 教資會資助及撥款 UGC Subventions and Grants 整筆經常撥款及指定撥款(附註22) Recurrent Block Grant and Earmarked Grants (Note 22) 退還差餉及地租 Rates and Government Rent Refunds 政府有關機構撥款(附註22) 教資會整筆 籌募及有關活動 撥款資助活動 UGC Block Fund Grant- Raising 科研活動 其他活動 總計 百萬元 $million 34 6. 學費、課程及其他收費 TUITION, PROGRAMMES AND OTHER FEES 教資會整筆 籌募及有關活動 撥款資助活動 UGC Block Fund 持續進修 Grant- Raising 教育活動 funded Related CPEP 總計 Activities 百萬元 $million $million $million $million 年度/ Year 2011 344 4 328 676 年度/Ye訂2010 329 1 320 650 35 7. 利息及投資收入 INTEREST AND INVESTMENT INCOME 2011 2010 百萬兀百萬元 $million $million 利息收入67 61 Interest income 可供出售財務資產之已實現盈利及投資收入7 114 Realised gains and investment income on A vailable-for-Sale Financial Assets 按公平值透過損益記眼之財務資產之公平值變動269 (15) Change in fair value of Financial Assets at Fair Value through Profit or Loss 343 160 36 8. 外界捐款 DONATIONS AND BENEFACTIONS 承諾款項 Pledged Amounts (附註25) (Note 25) 學術活動及一般用途5 Academic Activities and General Uses 獎學金及劫學金 Scholarships and Bursaries 研究及其他項目(附註22) Research and Other Projects (Note 22) 2011 百萬元 $million 其他 Others 17 12 5 總計 Total 承諾款項 Pledged Amounts (附註25) (Not巴25) 22 130 12 2010 百萬元 $million 其他 Others 80 17 5 總計 Total 210 17 5 534 39 130 102 232 37 9. 輔助服務及其他收入 AUXILIARY SERVICES AND OTHER INCOME 教資會 3費筆撥款 資助活動嘗嘗募及有攔 UGC 活動 Block Fund 持續進修 Grant- Raising 教育活動科研活動其他活動 funded Related CPEP Research Other 總計 百萬元 $million 年度2011 研究合約 Research Contract 學生宿舍75 Residence Halls 租金收入 Rental Income 教職員繳納之租金 Rental Contribution from Staff 服務收費、項目收入及其他贊助3 6 4 2 3 18 Workshop Income and Other Sponsorships 研究項目贊助(附設22) Research Project Sponsorships (Note 22) 雜項收入 Miscellaneous 30 9 4 102 132 277 年度2010 研究合約 Research Contract 學生宿舍 Residence Halls 租金收入 Rental Income 教職員繳納之租金 Rental Contribution Staff 服務收費、項目收入及其他贊助 Services Fees, Workshop Income and Other Sponsorships 研究項目贊助(附註22) Research Project Sponsorships (Note 22) 雜項收入 Miscellaneous 23 3 7 72 124 229 38 10. 開支 EXPENDITURE 折舊及攤銷 薪酬及福利 營運支出Depreciation Salaries and Operating and 總計 Benefits Expenses Amortisation Total 百萬元 $million 年間，2011 學術及研究 Learning and Research 教學及研究1,161 504 89 1,754 Instruction and Research 圖書館45 34 。79 Library 中央電腦設備60 17 3 80 Central Computing Facilities 其他教學服務49 5 55 Other Academic Services 小計1,315 560 93 1,968 Sub-total 校務支援 Institutional Support 管理及一股事務122 31 2 155 Management and General 校舍及有關費用115 173 99 387 Premises and Related Expenses 學生及一般教育服務58 81 140 Student and General Education Services 其他活動3 28 。31 Other Activities 小計298 313 102 713 Sub-total 總開支1,613 873 195 2,681 Total Expenditure 2010 學術及研究 Learning and Research 教學及研究1,111 440 80 1,631 Instruction and Research 圖書館45 33 79 Library 中央電腦設備60 21 3 84 Central Computing Facilities 其他教學服務49 7 57 Other Academic Services 小計1,265 501 85 1,851 Sub-total 校務支援 Institutional Support 管理及一般事務109 21 131 Management and General 校舍及有關費用113 172 95 380 Premises and Related Expenses 學生及一般教育服務53 81 135 Student and General Education Services 其他活動3 31 Other Activities 小計278 305 97 680 Sub-total 總開支1,543 806 182 2,531 Total Expenditure 薪酬及福利包括集厲為界定供款退休金計劃所支付之俠款共130百萬元(2010 : 129百萬元)。 39 10.1 高收入員工薪酬 REMUNERATION OF HIGHER PAID STAFF 員工數目 Number of Employees 2011 2010 年薪等值 1,800,001 1,950,000 46 HK$ 1,950,001 2,100,000 HK$ 2,100,001 2,250,000 HK$ 2,250,001 2,400,000 HK$ 2,400,001 2,550,000 HK$ 2,550,001 2,700,000 HK$ 2,700,001 2,850,000 HK$ 2,850,001 3,000,000 HK$ 3,000,001 3,150,000 HK$ 3,150,001 3,300,000 HK$ 3,300,001 3,450,000 HK$ 3,450,001 3,600,000 HK$ 3,600,001 薪俸包括薪金、約滿酬金 退休金計劃供款 顧問費用 房屋及其他津貼 大學提供宿舍者 其房屋福利似香港特別行政區政府差餉物業估價署評估其宿舍之應課差餉租值計算 40 11.綜合分部收支報表 放入 政府資助及擾款 學費、課程及其他收費 利息及投資收入 外界捐款 輔助服務及其他收入 轉撥自資本儲備 間接費用回收/分部間之放入 開支 薪金 其他營運支出 折舊及攤銷 間接費用回收/分部間之開支 本年度營運盈餘 所佔聯營公司的經營業績 本年度營運盈餘 說項 本年度說後盈餘 2011 教資會 整筆撥款 資助活動 百萬元 其他非整筆撥款 續募及有關 活動 百萬元 61 持續進修 教育活動科研活動 百萬元 其他活動 Other Activities 百萬元 總計 百萬元 分部間之 交易抵銷 百萬元 123 淨總計 2010 教資會 整筆撥款 資助活動 百萬元 4 其他非整筆撥款 續募及有關 活動 持續進修 教育活勘 科研活動 其他活動 百萬元 總計 Total 百萬元 $million 76 1,534 分部間之 交易抵銷 百萬元 部總計 教資會整筆撥款資助活動之營運結餘會轉至教資會整筆撥款儲備 籌募及有關活動則轉至籌募及教資會配對撥款儲備而其他餘項會轉至其他儲備

12.物業 機器及設備 大學座落西貢約60公頃土地 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 深圳市政府按名義租金批予集團其中一問附屬公司港科大研究開發深圳有限公司一幅7 ，437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。 以上之物榮、機器及設備項目按直線法依照下列年率計算折舊: 樓宇 在建工程 傢具及設備 每年2%或餘下租約年期 每年20%-25% 成本

42 13. 無形資產 INTANGIBLE ASSETS 成本 COST 2009年6月30 日之結餘 Balance as at 30 June 2009 添置 Additions 出售 Disposals 2010年6月30 日之結餘 Balance as at 30 June 2010 添置 Additions 2011年6月30 日之結餘 Balance as at 30 June 2011 攤銷 AMORTISATION 2009年6月30 日之結餘 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 本年度計算之攤銷 2011年6月30 日之結餘 賬面淨值 NET BOOK VALUE 2011年6月30 日之結餘 Balance as at 30 June 2010 電腦軟件資產按直線法每年25%計算攤銷。 電腦軟件 百萬元 35 於2011年6月30 的，000，000元(2010 : 30，000，000元)之電腦軟件正在發展中。 43 14. 財務資產 FINANCIAL ASSETS 2011 2010 百萬元 持至到期日財務資產，按攤銷成本 上市156 163 Listed 非上市1,471 412 Unlisted 1,627 575 於一年內到期204 76 於一年後到期1,423 499 1,627 575 可供出售財務資產 非上市固定收入組合，按公平值(附註a) 非上市股權證券，按成本(附註b) 1 1 上市股權證券，按市值18 15 19 17 按公平值透過損益記眼之財務資產 非上市股權基金(附註份935 380 非上市固定收入基金(附註份458 425 非上市實物基金(附註份263 66 1,656 871 財務資產主要以港元及美元為單位。 公平值乃參考活躍市場或基金經理報價釐定 私人公司發行非上市股權證券按成本扣除結算日減值計算 44 15. 於聯營公司權益 INTEREST IN AN ASSOCIATE 所佔淨資產 Share of net assets 聯營公司 Associate 擁有權益 註冊地點 架構模式 營運地點 持有股本類別 2011 百萬元 主要活動 深港產學研基地 事業法人單位 中華人民共和國 注入資本 致力於科技商業化，培育新 下載列為聯營公司之財務資料概要: 總資產 總負債 資農淨值 集團應佔聯營公司之資產淨值 營業額 本年度溢利 集團年內應佔聯營公司業績 45 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。 2011 百萬元 $million

16. 於合資企業權益 所佔淨資產(附註) 共同控制實體 註冊地點 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 浙江港科大先進製造研究所有限公司 浙江港科大 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

集團持有浙江港科大之51%股權，並於5席之蓋事局內佔有3席，擁有60%之投票權。但是，根據浙江港科大之公司章程及股東協議，所有重大之事項包括財務及營運之決策必須得到集團及其他主耍股東一致決議通過，因此，集團把浙江港科大歸類共同控制之實體 本集團佔虧損超過其所佔之合資企業之權益 本集團沒有補足其虧損次之責任 46 17. 應收賬款及預付款項 ACCOUNTS RECEIVABLE AND PREPAYMENTS 預付款項及按金 Prepayments and Deposits 應收賬款 應收賬款於發出通知後須立即償還 2011 百萬元 在衡量應收賬款之還款能力時，集團考慮其由給予借貸日至報告日期間之借貸質素變化。已過期而 無作減值撥備之應收賬款己於本報告日前清付或相關應收聽款過往並無拖欠還款。故此，校董會認 為無需就應收賬款作減值撥備，本集團並無就該等結餘持有任何抵押。 應收賬款主要以港元為單位。 47 18. 現金及等同現金 百萬元 原到期日為三個月或以下之定期存款872 1,219 現金及銀行結餘95 105 現金及等同現金之賬面值乃以下列貨幣列值: 2011 2010 百萬元 港幣857 952 人民幣69 20 美元26 345 歐元11 6 Euro 其他4 1 Others 967 1,324 19. 應付賬款及應計費用 2010 百萬元 應付賬款及應計費用323 302 應付賬款及應計費用主要以港元為單位。 48 20. 教職員福利撥備 PROVISION FOR STAFF BENEFITS 2011 2010 百萬元 退職金49 43 代假期金及其他63 63 應付於: 一年內98 94 一年後14 12 49 21. 金融工具分類 百萬元 財務資產 貸款及應收款 應收賬款及按金 銀行存款957 2,041 現金及等同現金967 1,324 可供出售財務資產19 17 按公平值透過損益記賬之財務資產1,656 871 持至到期日財務資產1,627 575 財務負債 其他按攤銷成本入賬之財務負債 應付賬款及應計費用177 156 50 22. 遞延收益 教資會資助及撥款 政府有關機構撥款 捐款 贊助 總計 百萬元

2009年6月30 日之結餘598 18 8 24 648 已收/應收之款項 承諾捐款(附註25) 其他1,727 58 4 15 1,804 計入綜合全面收益表(附註5 、8及9) (1,469) (45) (5) (16) (1 ,535) 轉至資本儲備(附註23) (220) (1) (4) (1) (226) 2010年6月30 日之結餘636 30 8 22 696 已收/應收之款項 承諾捐款(附註25) 其他1,734 61 9 20 1,824 計入綜合全面收益表(附註5 、8及9) 轉至資本儲備(附註23) 2011年6月30 日之結餘 51 23. 資本儲備 物業、機器及設備的資金來源 無形資產的資金來源總計 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 百萬元 (附註12) (附註13) (Note 12) (Note 13) 2009年7月1 日之結餘 相當於添置物業、機器及設備及無形資產之款項而轉撥自: (附註2.6/2幼 遞延收益(附註22) 教資會整筆撥款儲備(附註24) 籌募及教資會配對撥款儲備(附註25) 其他儲備(附註26) 相當於折舊及攤銷之款項而轉撥至: (附註2.6/2身 綜合全面收益表(141) 教資會整筆撥款儲備(附註24) 籌募及教資會配對撥款儲備(附註25) 其他儲備(附註26) Other Reserves (Note 26) 相當於出售項目淨虧損之款項而轉撥至: (附註2.6/2幼 綜合全面收益表 外幣換算之差額 2010年6月30 日之結餘 淨轉撥自: 教資會整筆撥款儲備(附註24) 籌募及教資會配對撥款儲備(附註25) 其他儲備(附註26) 52 23. 資本儲備(續) 物業、機器及設備的資金來源 無形資產的資金來源總計 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 其他總計 百萬元 (附註12) (附註13) 2010年7月1 日之結餘 相當於添置物業、機器及設備及無形資產之款項而轉撥自: (附註2.6/2幼 遞延收益(附註22) 教資會整筆撥款儲備(附註24) 籌募及教資會配對撥款儲備(附註25) 其他儲備(附註26) 相當於折舊及攤銷之款項而轉撥至: (附詮2.6/2.9) 綜合全面收益表 教資會整筆撥款儲備(附註24) 籌募及教資會配對撥款儲備(附註25) 其他儲備(附註26) 外幣換算之差額 2011年6月30 日之結餘 轉撥自(至) : 教資會整筆撥款儲備(附註24) 籌募及教資會配對撥款儲備(附註25) 其他儲備(附註26) 53 24. 教資會整筆撥款儲備 研究項目及其他一般及發展儲備 總計 百萬元 2009年6月30 日之結餘 年內全面收益/ (虧細)總額(2) 36 34 轉撥自/ (至)資本儲備(附註2.9/23) 相當於添置物業、機器及設備及無形資產之款項(36) O (36) 相當於折舊及攤銷之款項 2010年6月30 日之結餘 年內全面收益總額11 50 61 轉撥自/(至)資本儲備(附註2.9/23) 相當於添置物業、機器及設備及無形資產之款項(10) 相當於折舊及攤銷之款項 2011年6月30 日之結餘 54 25. 籌募及教資會配對撥款儲備 留本指定非指定總計 百萬元 年內全面收益總額 本年度盈餘 外幣換算之差額 轉撥自/ (至)資本儲備(附註2.9/23) 相當於添置物業、機器及設備及無形資產之款項 相當於折舊及攤銷之款項 其他資金轉撥(附註26) 年內全面收益/ (虧細)總額 本年度盈餘/(虧損) 43 (36) 226 233 外幣換算之差額 轉撥自/ (至)資本儲備(附註2.9/23) 相當於添置物業、機器及設備及無形資產之款項 相當於折舊及攤銷之款項 其他資金轉撥 2011年6月30 日之結餘 25. 籌募及教資會配對撥款儲備(續) 承諾捐款之資料 資本項目其他活動 之捐款之捐款 總計 百萬元 於2009年6月30 日未兌現之款額 在本年度已收之捐款並於綜合全面收益表確認(附註8) 在本年度已收之捐款並記入遞延收益脹項(附註22) (5) 新增未兌現之承諾捐款61 68 129 於2010年6月30 日未兌現之款額 在本年度己收之捐款並於綜合全面收議表確認(附註8) 在本年度已收之捐款並記入遞延收益脹項(附註22) 新增未兌現之承諾捐款。17 17 於2011年6月30 日未兌現之款額 56 26. 其他儲備 百萬元 2009年6月30 日之結餘797 年內全面收益總額 本年度盈餘197 外幣換算之差額3 於聯營公司所佔法定儲備之變動(1) 轉撥自/(至)資本儲備(附註2.9/23) 相當於添置物業、機器及設備及無形資產之款項(68) 相當於折舊及攤銷之款項16 其他資金轉撥(附註25) 14 2010年6月30 日之結餘958 年內全面收益總額 本年度盈餘215 外幣換算之差額2 於聯營公司所佔法定儲備之變動1 轉撥自/ (至)資本儲備(附註2.9/23) 相當於添置物業、機器及設備及無形資產之款項(63) 相當於折舊及攤銷之款項17 57 27. 關聯方交易 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，集團與關聯方訂立的交易如下: 2011 百萬元 (a) 與聯營公司之交易 支付予聯營公司之租金 (b) 主要管理人員的酬金 薪金及其他短期僱員褔利 離職後福利 58 承擔 2010 百萬元 $million 2011 百萬元 $million 資本承擔 以下為尚未於財務報表作出準備之資本承擔: (a) 已簽約 已獲授權但尚未簽約 上述之承擔的資本來源: 2010 百萬元 $million 2011 百萬元 $million 66 90 源自集團其他資本之金額 日確認為收入並留存於教資會整筆撥款儲備之金 額 將會從其他儲備中分配之金額361 434 已收並反映於遞延收益於6月30日之金額150 103 教資會已批但未收到之撥款金額1,305 1,678 捐獻者承諾之金額93 113 2010 百萬元 $million 營運租約之承擔 於6月30 日，集團於不可撤銷營運租約之條款下所簽定之日後最低租貸付款合共如 下: 一年內 第二至第五年內

(ii) 於6月30 日，集團擁有不可撤銷營運租貸之日後最低租貸收入合共如下: 一年內 第二至第五年內 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。 一未獲豁免轍稅之附屬公司作出香港利得稅撥備，撥備乃按本年度估計應計稅盈餘以16.5 %(2010年: 16.5%) 計算。 本年度香港利得稅撥備 2011 百萬元 $million 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: 2 百萬元 $million 本年度營運所得盈餘505 419 按稅率16.5% (2010 : 16.5%) 計算之稅項83 69 無需課稅故入(511) (476) 無需課稅支出427 412 其他差額1 (3) 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避延稅項資產為約11 ，900，000元(2010年: 8 ，900，000元) ，其來自累積虧損約46，500，000元(2010年: 35 ，500，000元)。 該筆稅項虧損將逐步於2016年前期間到期。 30. 附屬公司 於2011年6月30 日，大學之主要附屬公司如下: 擁有股權 註冊地點/國家 附屬公司 主要活動 直接持有 間接持有 香港科技大學持續進修學院有限公司(附註) 香港100% 推廣持續進修的課程。 香港科大地產有限公司香港100% 不活動 香港科大研究開發有限公司香港 致力於珠江三角洲地直把科技商 業化。包括工業合伺、技術授權、培育新公司及其它研究和技 術服務。 廣州香港科大研究開發有限公司 中華人民共和圓 港科大研究開發(深圳)有限公司 中華人民共和國 廣州市香港科大霍英東研究院 中華人民共和國100% 致力於基本科學的研究，科技的 創新及相關科研活動的推廣，先 進科技人才及管理人員的培訓。 香港科技大學深圳研究院 中華人民共和國 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。 附註:附屬公司於2010年10月暫停運作。

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