Financial Results 2017/18

1. 2017/18 was a challenging year for the OFCA Trading Fund. The profit for the year fell to HK$40.9 million from HK$72.0 million in 2016/17*. The rate of return on average net fixed assets (“ANFA”) decreased to 11.9% from 22.3% a year before. This was primarily the result of decreased revenue and increased operating expenditure, partly offset by a decrease in ANFA.
2. The total revenue at HK$476.2 million was lower than the amount of HK$491.3 million last year due to decrease in revenue from licence fees and interest income from the placement with the Exchange Fund.
3. On the expenditure side, the total expenditure rose by 3.8% to HK$435.3 million in 2017/18 mainly due to increase in staff costs and administrative expenses.
4. Looking ahead, we are optimistic that the communications sector in Hong Kong will remain vibrant and dynamic. With solid financial fundamentals and a dedicated and professional team in OFCA, we are well placed to face the challenges in the coming year.

* Since the Fund is no longer required to pay notional profits tax to the Government with effect from 27 December 2017, the comparative profit for 2016/17 (i.e. HK$72.0 million) is the profit before tax.

Highlights of the financial performance:

Revenue

Expenditure

* In parentheses are 2016/17 figures