2016-07-29-港交所-力宝专选中港地产_力宝专选中港地产ETF_（年报截至2016年3月31日）_34页_479kb

LIPPO SELECT HK & MAINLAND PROPERTY ETF Annual Financial Statements (Year Ended 31 March 2016) Summary

Core Content Overview

The Lippo Select HK & Mainland Property ETF is a sub-fund of the Lippo Fund Series, established under the Trust Deed dated 11 June 2012. The financial statements for the year ended 31 March 2016 are prepared in accordance with International Financial Reporting Standards (IFRS) and include the following key components:

• Statement of Net Assets
• Statement of Comprehensive Income
• Statement of Changes in Net Assets Attributable to Unitholders
• Statement of Cash Flows
• Notes to the Financial Statements
• Investment Portfolio (Unaudited)
• Performance Record (Unaudited)
• Administration and Management

Main Points

1. Statement of Net Assets

• Current Assets:

  • Investments: HK$66,142,244 (2016) vs HK$80,940,964 (2015)
  • Dividends Receivable: HK$148,192 (2016) vs HK$173,329 (2015)
  • Cash and Cash Equivalents: HK$40,826 (2016) vs HK$233,981 (2015)
  • Total Assets: HK$66,331,262 (2016) vs HK$81,348,274 (2015)

• Current Liabilities:

  • Management Fee Payable: HK$36,500 (2016) vs HK$46,349 (2015)
  • Establishment Costs Payable: HK$433,878 (2016) vs HK$435,068 (2015)
  • Total Current Liabilities: HK$470,378 (2016) vs HK$481,417 (2015)

• Non-Current Liabilities:

  • Establishment Costs Payable: HK$195,070 (2016) vs HK$595,069 (2015)
  • Total Non-Current Liabilities: HK$195,070 (2016) vs HK$595,069 (2015)

• Equity:

  • Net Assets Attributable to Unitholders: HK$65,665,814 (2016) vs HK$80,271,788 (2015)

2. Statement of Comprehensive Income

• Income:

  • Dividend Income: HK$3,189,112 (2016) vs HK$3,535,257 (2015)
  • Interest Income: HK$3 (2016) vs HK$5 (2015)
  • Net (Loss)/Gain on Investments: (HK$8,918,722) (2016) vs HK$8,690,287 (2015)
  • Net Foreign Exchange Losses: (HK$8,487) (2016) vs HK$0 (2015)
  • Total Net (Loss)/Income: (HK$5,738,094) (2016) vs HK$12,225,549 (2015)

• Expenses:

  • Transaction Costs on Investments: (HK$101,584) (2016) vs (HK$47,270) (2015)
  • Management Fee: (HK$510,236) (2016) vs (HK$537,899) (2015)
  • Total Operating Expenses: (HK$611,820) (2016) vs (HK$585,169) (2015)

• Total Comprehensive (Loss)/Income:

  • (HK$6,349,914) (2016) vs HK$11,631,062 (2015)

3. Statement of Changes in Net Assets Attributable to Unitholders

• Net Assets at the Beginning of the Year: HK$80,271,788 (2016) vs HK$81,202,853 (2015)
• Net Redemption of Units: (HK$8,256,060) (2016) vs (HK$12,562,127) (2015)
• Total Comprehensive (Loss)/Income: (HK$6,349,914) (2016) vs HK$11,631,062 (2015)
• Net Assets at the End of the Year: HK$65,665,814 (2016) vs HK$80,271,788 (2015)

4. Statement of Cash Flows

• Net Cash Used in Operating Activities: (HK$136,945) (2016) vs (HK$848,606) (2015)
• Net Cash Used in Financing Activities: (HK$56,210) (2016) vs (HK$99,196) (2015)
• Net Decrease in Cash and Cash Equivalents: (HK$193,155) (2016) vs (HK$947,802) (2015)
• Cash and Cash Equivalents at the Beginning of the Year: HK$233,981 (2016) vs HK$1,181,783 (2015)
• Cash and Cash Equivalents at the End of the Year: HK$40,826 (2016) vs HK$233,981 (2015)

5. Notes to the Financial Statements

(a) Basis of Preparation

• Financial statements are prepared in accordance with IFRS.
• Historical cost convention applies, with revaluation of financial assets and liabilities held at fair value through profit or loss.
• No new standards or amendments with material impact were adopted for the financial year beginning 1 April 2015.

(b) Investments

• All investments are classified as "financial assets at fair value through profit or loss."
• Purchases and sales are accounted for on the trade date basis.
• Unrealised and realised gains and losses are included in the statement of comprehensive income.
• Investments are derecognised when rights to cash flows expire or ownership risks and rewards are transferred.

(c) Offsetting Financial Instruments

• Financial assets and liabilities are offset when there is a legally enforceable right to set-off and the intention to settle on a net basis or simultaneously realise the asset and settle the liability.

(d) Income Recognition

• Interest income is recognised using the effective interest method.
• Dividend income is recorded on the ex-dividend date or when the right to receive payment is established.

(e) Expenses

• Expenses are accounted for on an accrual basis.

(f) Cash Component

• Cash issue component is the difference between the issue price and the value of securities exchanged in kind.
• Cash redemption component is the difference between the redemption value and the value of securities transferred in kind.

(g) Cash and Cash Equivalents

• Includes cash in hand, deposits at call, and short-term highly liquid investments with original maturities of three months or less.

(h) Translation of Foreign Currencies

• Functional currency is Hong Kong dollar, as it most faithfully represents the economic effects of the Sub-Fund's transactions.
• Foreign currency transactions and balances are translated using exchange rates prevailing at the transaction date and year-end.

(i) Units

• Units are redeemable at the holder's option and classified as equity.
• Units can be redeemed in-kind and/or in cash.
• Net asset value per unit is calculated based on net assets attributable to unitholders divided by the number of outstanding units.

(j) Segmental Reporting

• Operating segments are reported in a manner consistent with the internal reporting used by the chief operating decision-maker, who is identified as the Manager.

(k) Amounts Due from and to Brokers

• Represents receivables for investments sold and payables for investments purchased, not yet settled or delivered.

(I) Structured Entities

• The Sub-Fund invests in unconsolidated structured entities, which are defined by their narrow objectives and contractual arrangements.
• Changes in the fair value of Investee Funds are included in the statement of comprehensive income under "net gain/(loss) on investments."

6. Net (Loss)/Gain on Investments

• Net Change in Unrealised Gain/Loss: (HK$9,516,170) (2016) vs HK$7,299,934 (2015)
• Net Realised Gain on Sale of Investments: HK$597,448 (2016) vs HK$1,390,353 (2015)
• Total Net (Loss)/Gain on Investments: (HK$8,918,722) (2016) vs HK$8,690,287 (2015)

7. Number of Units and Net Assets

• Units in Issue at the Beginning of the Year: 1,950,000 (2016) vs 2,275,000 (2015)
• Redemption of Units: (225,000) (2016) vs (325,000) (2015)
• Units in Issue at the End of the Year: 1,725,000 (2016) vs 1,950,000 (2015)
• Net Assets Attributable to Unitholders (Accounting NAV): HK$38.0671 (2016) vs HK$41.1650 (2015)
• Net Assets Attributable to Unitholders (Dealing NAV): HK$38.4121 (2016) vs HK$41.6753 (2015)

8. Taxation

• The Sub-Fund is exempt from Hong Kong profits tax under section 26A(1A) of the Inland Revenue Ordinance.
• PRC tax may apply to capital gains from H-shares, but no provision is made as enforcement is not considered probable.

9. Related Party Transactions

• Related parties include the Manager and its Connected Persons.
• All transactions are carried out in the normal course of business and on normal commercial terms.
• Management fee is charged at 0.68% per annum of the net asset value, with a maximum of 2%.
• Establishment costs are expensed as incurred in the statement of comprehensive income.

Key Information

• The Sub-Fund aims to replicate the performance of the Lippo Select HK & Mainland Property Index.
• The financial statements are audited by PricewaterhouseCoopers Certified Public Accountants.
• The Trust Deed governs the Sub-Fund and is subject to Hong Kong law.
• The Sub-Fund is listed on the Hong Kong Stock Exchange (Stock Code: 2824).
• The Sub-Fund's net assets and unit values are based on fair valuation inputs and are subject to adjustments for establishment costs.