Trading Fund Report 2020/21

1. 2020/21 was a challenging year for the OFCA Trading Fund. This year, the OFCA Trading Fund turned to a profit of $3.9 million from a loss of $37.2 million in 2019/20, 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 -12.8%* from -10.0% last year, which was primarily the result of an increase in operating expenditure.
   
2. The total revenue at HK$481.9 million was higher than the amount of HK$476.2 million last year due to increase in revenue from services provided to related parties as well as sundry income (mainly from recovery of legal fees), partly offset by drop in revenue from licence fees.
   
3. On the expenditure side, the total expenditure fell by 6.9% to HK$478.0 million in 2020/21 mainly due to a decrease in expenses paid on settlement of restitution claims, partly offset by an increase in staff costs as well as depreciation of right-of-use assets resulting from adoption of Hong Kong Financial Reporting Standard (“HKFRS”) 16 “Leases” in the year. 
   

• The rate of return on ANFA, the derivation of which is consistent with that before the adoption of HKFRS 16 “Leases” to achieve comparability, is calculated as total comprehensive income (excluding, if any, interest income, interest expenses and settlement of restitution claims) divided by average net fixed assets, and expressed as a percentage. Fixed assets include property, plant and equipment and intangible assets only.
  

Highlights of the financial performance :