SENIOR FACULTY APPOINTMENTS Prof. Donald LOW
Director of Leadership and Public Policy Executive Education Program Dr. MAK Ho-Yi
Director of Biosciences Central Research Facility
Prof. QI Ye
Director of HKUST Institute for Public Policy
Prof. QIU Huihe
Head of Department of Mechanical and Aerospace Engineering Prof. TANG Wenfang
Head of Division of Social Science Prof. Penger TONG
Head of Department of Physics Prof. TSUI Chi-Ying
Head of Division of Integrative Systems and Design
Prof. Ian WILLIAMS
Head of Department of Chemistry Prof. YEUNG Dit-Yan
Head of Department of Computer Science and Engineering Prof. ZHANG Chu
Head of Department of Finance
PROFESSOR EMERITUS
The following faculty members were granted the title of Professor Emeritus upon their retirement or departure from the University service:
Prof. Tony F. CHAN
Department of Mathematics and Department of Computer Science and Engineering
Prof. LEA Chin-Tau
Department of Electronic and Computer Engineering Prof. KWOK Hoi-Sing Department of Electronic and Computer Engineering
Prof. KUANG Jun-Shang
Department of Civil and Environmental Engineering
Prof. Billy SO Kee-Long Division of Humanities Prof. Alvin SO Yiu-Cheong Division of Social Science
Prof. TAM Wing-Yim Department of Physics Prof. WU Jingshen
Department of Mechanical and Aerospace Engineering Prof. David Stephen ZWEIG Division of Social Science
ANNUAL REPORT 2018-19 APPENDICES
APPENDIX IV
FINANCE
OVERVIEW
The financial year 2018/19 recorded a surplus of $343 million ($568 million for 2017/18). The lower surplus for 2018/19 reflected a lower interest and investment return against a fairly volatile investment environment, as partly compensated by increased contribution from Self-Financing Continuing Professional Education Programs (“CPEP”) and auxiliary services and other income.
CONSOLIDATED INCOME AND EXPENDITURE
The consolidated income increased by $71 million to $5,132 million in 2018/19 ($5,061 million in 2017/18), contributed by a growth in auxiliary services and other income for $33 million, additional University Grants Committee (“UGC”) supplementary grants for General Pay Adjustment (“GPA”) on salaries and an increase in tuition fee income, against a reduction in interest and investment income of $206 million compared to the previous year.
The consolidated expenditure increased by $295 million to $4,791 million ($4,496 million in 2017/18) which was mainly attributable to higher salary costs arising from GPA, general increases in teaching and research activities, and growth in student expenses on studentship.
SEGMENT RESULTS
Commentary on the operating segments, analysed by UGC-Funded Activities and non-UGC Funded Activities, is as follows:
UGC-Funded Activities
UGC-Funded Activities showed a deficit of $26 million (surplus of $76 million for 2017/18). The 2018/19 deficit was affected by lower investment income and increase in operating expenses. As at 30 June 2019, the University had UGC reserves of
$2,591 million ($2,617 million in 2017/18).
Non-UGC Funded Activities
Self-Financing Continuing Professional Education Programs, Research and Other Activities
Self-financing CPEP activities contributed a surplus of $287 million ($171 million for 2017/18), mainly driven by higher student enrollment and higher tuition fees. Non-UGC funded research activities contributed a surplus of $16 million ($12 million for 2017/18), mainly arising from completed commercial research projects and government subsidies. Other activities achieved a surplus of $45 million ($193 million for 2017/18). In aggregate, the overall surplus of these operating segments amounted to $348 million ($376 million for 2017/18).
Donations Activities
Donations totalling $62 million were recorded as income for 2018/19 ($60 million for 2017/18). Overall the segment showed a surplus of $21 million ($116 million for 2017/18). The University has successfully secured $1,055 million new pledges in 2018/19 ($275 million in 2017/18). After the year end, the University received donations of $1,147 million and $600 million from the Government’s Eighth Matching Grant Scheme which will be recorded in 2019/20. In addition, the University received over $500 million of new pledges subsequent to the year end.
Non-UGC Reserves
Non-UGC reserve balances stood at $6,150 million at the end of 2018/19 ($5,733 million for 2017/18). The growth in the reserve balance was mainly contributed by the aforestated interest and investment income, self-financing activities and donations.
CAPITAL EXPENDITURE
A number of construction projects are underway to enhance the University’s facilities and infrastructure to cater for accommodation and amenity needs of students, as well as for academic and research activities. They include a multi-purpose auditorium, new student residences, indoor sports centre, waterfront facilities, animal care facility and the renovation of catering outlets and refurbishment of staff quarters.
As at 30 June 2019, total commitments for approved construction projects and other capital items amounted to $4,621 million:
$3,045 million of which will come from existing University’s Funds, $75 million by approved but yet to be received UGC grants,
$438 million by pledged donations, and $1,063 million will be funded by deferred income on hand.
OUTLOOK
Whilst the economic, social and political environments are presenting great challenges to the University, its stakeholders and Hong Kong as a whole, with the rapid development of the Greater Bay Area (“GBA”), where the University is positioning itself as a pioneer by establishing a strong foothold in Guangzhou, there are more and more opportunities for funding support as well as collaboration with industries and governments, in particular in innovation and technology areas. These collaborations provide the University with an innovation platform to promote knowledge transfer under the GBA Development Framework.
The University entered into agreements on 21 December 2018 with the Guangzhou Municipal Government and Guangzhou University to jointly establish Hong Kong University of Science and Technology (Guangzhou) (“HKUST (GZ)”), marking an important milestone in the University’s development and advancement. Under the agreements, construction cost of the campus and daily operating expenses will be funded by Guangzhou Municipal Government. HKUST (GZ) will help steer frontier development of HKUST in education, science and technology, business and management as well as knowledge transfer, adding strength and impetus to Hong Kong and the GBA which are gaining traction in innovation with science and technology. Ground breaking ceremony has been held on 26 September 2019.
ANNUAL REPORT 2018-19 APPENDICES