Page 86 - URA Annual Report 2021-22

MANAGEMENT DISCUSSION AND ANALYSIS
Financial Review
(I) Review of 2021/22 Results (a) Revenue
The revenue for the year ended 31 March 2022 was $22,653 million, which comprised upfront payments from four tenders involving 7 redevelopment projects, share of surplus from joint development projects and proceeds from flat sale. The amount was higher than the revenue of $3,439 million in 2020/21 by $19,214 million.
The total upfront payments in 2021/22 of $20,900 million were significantly higher than that in 2020/21 of $913 million. There were four project tenders during the year, namely (a) Bailey Street / Wing Kwong Street, (b) Hung Fook Street / Ngan Hon Street, (c) Hung Fook Street / Kai Ming Street / Wing Kwong Street involving four redevelopment projects, and (d) Oak Street / Ivy Street, with a total site area of 18,044 m2. Comparatively, there was only one project tendered in 2020/21, namely Tonkin Street / Fuk Wing Street with site area of 1,268 m2.
The share of surplus from joint development projects of $1,362 million in 2021/22 (2020/21: $426 million) was revenue from projects where the sales proceeds exceeded the thresholds stipulated in the development agreements.
The revenue from sale of properties of $391 million in 2021/22 largely related to the residential units at eResidence sold at discounted prices under the Starter Homes Scheme.
(b) Other Income
Of the $253 million (2020/21: $265 million) in other income for 2021/22, $84 million (2020/21: $195 million) were interest income from bank deposits and fixed income investments, with an overall yield of 0.66% p.a. (2020/21: 1.62% p.a.). The lower yield reflected the low interest rate environment in 2021/22.
Other income also included rental income of $141 million (2020/21: $66 million) from certain properties retained by the URA. The increase in rental income in 2021/22 was primarily attributable to the opening of Yue Man Square (YM2) in Kwun Tong Development Area and Central Market.
(c) Administrative Expenses
Administrative expenses for 2021/22 of $623 million (2020/21: $593 million) mainly covered staff costs, outsourcing service charges, accommodation costs and office expenses. Cost control measures were implemented whenever possible to minimise administrative expenses.
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