2024-10-31-港交所-易方达恒指ＥＳＧ_2024年度报告_42页_12mb

E FUND (HK) HSI ESG ENHANCED INDEX ETF (A SUB-FUND OF E FUND ETF SERIES OFC)

Summary of Financial Statements for the Year Ended 30 June 2024

Core Content Overview

This document provides the financial statements and auditor's report for E Fund (HK) HSI ESG Enhanced Index ETF, a sub-fund of E Fund ETF Series OFC, for the year ended 30 June 2024. The report includes:

• Statement of Net Assets Attributable to Shareholders
• Statement of Profit or Loss and Other Comprehensive Income
• Statement of Changes in Net Assets Attributable to Shareholders
• Statement of Cash Flows
• Notes to the Financial Statements
• Investment Portfolio and Movements
• Performance Table
• Management and Administration

The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and are audited by PricewaterhouseCoopers, confirming a true and fair view of the financial position and performance of the Company and the Sub-Fund.

Key Financial Highlights

Statement of Net Assets Attributable to Shareholders (As at 30 June 2024)

• Total Assets: HKD 570,008,161
• Total Liabilities: HKD 2,030,318
• Net Assets Attributable to Shareholders: HKD 567,977,843
• Net Assets per Share: HKD 2.4231

Statement of Profit or Loss and Other Comprehensive Income (For the Year Ended 30 June 2024)

• Total Loss After Tax: HKD 149,603,544
• Net Loss on Financial Assets at Fair Value through Profit or Loss: HKD 166,325,622
• Other Income: HKD 77,663
• Total Comprehensive Loss: HKD 149,603,544

Statement of Changes in Net Assets Attributable to Shareholders

• Net Assets at the Beginning of the Year: HKD 4,668,747
• Net Issue of Shares: HKD 712,912,640
• Net Assets at the End of the Year: HKD 567,977,843
• Number of Shares in Issue at the End of the Year: 234,400,000 shares

Statement of Cash Flows

• Net Cash Used in Operating Activities: HKD 26,031,794
• Net Cash Generated from Financing Activities: HKD 28,172,078
• Net Increase in Cash and Cash Equivalents: HKD 2,140,284
• Cash and Cash Equivalents at the End of the Year: HKD 2,191,117

Main Investment Strategy

• The Sub-Fund follows a full replication strategy, investing in securities that constitute the HSI ESG Enhanced Index in the same weightings as the Index.
• The Manager may use a representative sampling strategy under exceptional circumstances (e.g., market turbulence, trading restrictions, or cost efficiency), provided that:
  • The maximum deviation from the Index weighting of any constituent does not exceed 3% (or such percentage determined by the Manager with SFC consultation).
  • The Sub-Fund may not invest more than 10% of its Net Asset Value (NAV) in other collective investment schemes (CIS) or financial derivative instruments (FDIs).
• The Sub-Fund may engage in securities lending, sale and repurchase, and reverse repurchase transactions, up to 10% of its NAV.

Key Audit Matters

• The key audit matter relates to the valuation of financial assets at fair value through profit or loss and the recognition of net losses on these assets.
• The audit procedures included:
  • Reviewing the Sub-Fund’s investment process and controls.
  • Confirming the existence and valuation of financial assets.
  • Testing purchase and sale transactions and recalculating gains or losses.
• The audit found no material exceptions in its testing.

Compliance and Legal Framework

• The Company is incorporated under the Securities and Futures Ordinance (Cap. 571) and is a public umbrella open-ended fund company with variable capital and limited liability.
• The Sub-Fund is registered with the Hong Kong Securities and Futures Commission (SFC) and is authorized under Section 104 of the SFO.
• The financial statements comply with the Instrument of Incorporation, Part 7 of the OFC Rules, Appendix E of the UT Code, and Chapter 9 of the OFC Code.

Auditor's Responsibilities and Independence

• The audit was conducted in accordance with Hong Kong Standards on Auditing (HKSAs).
• The auditor is independent of the Company and Sub-Fund, in compliance with the HKICPA Code of Ethics.
• The auditor is responsible for:
  • Assessing the risk of material misstatement.
  • Evaluating the going concern basis of accounting.
  • Ensuring the fair presentation of financial statements.
  • Reporting any material misstatement in the other information included in the annual report.

Notes to the Financial Statements

• The Sub-Fund holds 70 out of 70 constituents of the Index (as of 30 June 2024), matching the Index composition.
• The Sub-Fund may use in-kind subscriptions and redemption to manage its portfolio.
• The Manager is responsible for the investment strategy, including the use of representative sampling and derivative instruments.
• Dividend receivables and cash and cash equivalents are included in the financial assets.

Summary of Key Information