Page 76 - URA Annual Report 2020-21

MANAGEMENT DISCUSSION AND ANALYSIS
Financial Review
(I)
Review of 2020/21 Results (A) Revenue
The revenue for the year ended 31 March 2021 was $3,439 million, which comprised upfront payment from a tendered project, share of surplus from joint development projects and proceeds from flat sale. The amount was higher than the revenue of $2,107 million in 2019/20 by $1,332 million.
The upfront payment in 2020/21 of $913 million was comparable to that in 2019/20 of $883 million. There was only one project tendered in both years, namely Tonkin Street / Fuk Wing Street with site area of 1,268 m2 in 2020/21 and Hang On Street with site area of 865 m2 in 2019/20.
The share of surplus from joint development projects of $426 million in 2020/21 (2019/20: $1,185 million) was revenue from projects where the sales proceeds exceeded the thresholds stipulated in the development agreements.
The revenue from sale of properties of $2,100 million in 2020/21 largely related to the residential units at eResidence sold at discounted prices under the Starter Homes Scheme.
(B) Other Income
Of the $265 million (2019/20: $479 million) in other income for 2020/21, $195 million (2019/20: $396 million) were interest income from bank deposits and fixed income investment products, with an average yield of 1.62% p.a. (2019/20: 2.61% p.a.). The lower average yield reflected the gradual decrease in interest rates over the year.
Other income also included rental income of $66 million (2019/20: $98 million) from certain properties retained by the URA. The decrease in rental income in 2020/21 was primarily attributable to enhanced rent relief measures for the Authority’s domestic and commercial tenants to help them tide over financial difficulties amid COVID-19 pandemic.
(C) Administrative Expenses
Administrative expenses for 2020/21 of $593 million (2019/20: $515 million) mainly covered staff costs, accommodation costs and office expenses. Cost control measures were implemented whenever possible to minimise administrative expenses.
To cope with the continuous expansion of urban renewal activities, including commencement of four redevelopment projects in 2020/21 and implementation of two new building rehabilitation subsidy schemes, namely Lift Modernisation Subsidy Scheme and Building Maintenance Grant Scheme for Needy Owners, the staffing level was increased from 557 at 31 March 2020 to 650 at 31 March 2021. Of the 650 staff, 51 (31 March 2020: 27) were employed on contracts of less than three years.
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URA ANNUAL REPORT 2020-21