Office of the Communications Authority
Trading Fund Report 2019/20

1. 2019/20 was a challenging year for the OFCA Trading Fund. This year, the OFCA Trading Fund turned to a loss of $37.2 million from a profit of $30.8 million in 2018/19, after having taken into account the expenses paid on settlement of restitution claims. For the rate of return on average net fixed assets (“ANFA”), it dropped to -10.0%* from -0.8% last year, which was primarily the result of a decrease in revenue, partly offset by a decrease in operating expenditure. 
2. The total revenue at HK$476.2 million was lower than the amount of HK$499.7 million last year due to decrease in revenue from licence fees as well as interest income from the placement with the Exchange Fund. 
   
3. On the expenditure side, the total expenditure rose by 9.5% to HK$513.4 million in 2019/20 mainly due to increase in staff costs and incurrence of expenses on settlement of restitution claims.
   
4. Looking ahead, with the launch of 5G mobile communications services, in the short term we are optimistic that the communications sector in Hong Kong will enter a new era and remain vibrant and dynamic. With a dedicated and professional team in OFCA, we are well placed to face the challenges in the coming year.
   

• The return on ANFA is calculated as total comprehensive income divided by average net fixed assets and expressed as a percentage. Total comprehensive income for calculating return on ANFA has been adjusted by excluding the interest income, interest expenses and expenses paid on settlement of restitution claims.

Highlights of the financial performance :