Page 76 - Urban Renewal Authority 2023-24 Annual Report

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Review

(I) Review of 2023/24 Results

(a) Revenue
The revenue for the year ended 31 March 2024 was HK$3,024 million, which comprised upfront
payment from one tendered project, share of surplus from joint development projects and proceeds
from sale of properties. The amount was lower than the revenue of HK$5,513 million in 2022/23 by
HK$2,489 million.

The total upfront payment in 2023/24 of HK$1,940 million was significantly lower than that in 2022/23
of HK$4,841 million, primarily attributable to sustained property market downturn and only one
project tender awarded in the year. The project tendered in 2023/24 referred to the Civil Servants’
Co-operative Building Society (CBS) Scheme site at Shing Tak Street/Ma Tau Chung Road with a site
area of about 5,164 square metres. Comparatively, there were three project tenders awarded in
2022/23, which had a total site area of 6,182 square metres.

The share of surplus from joint development projects of HK$449 million in 2023/24 (2022/23: HK$476
million), largely contributed by Seaside Sonata (SSP/1/003-005) and Grand Central (K7 Area 2&3), was
revenue from the projects where the sales proceeds exceeded the thresholds stipulated in their
respective development agreements.

The revenue from sale of properties of HK$635 million in 2023/24 (2022/23: HK$196 million) mainly
related to the sale of residential units at Kai Tak, L • Living 23 in Tai Kok Tsui and The Harmonie in
Sham Shui Po.

(b) Other Income

Of the HK$1,024 million (2022/23: HK$575 million) in other income for 2023/24, HK$890 million
(2022/23: HK$518 million) were interest income from bank deposits and fixed income investments,
with an overall yield of 4.54 percent p.a. (2022/23: 2.06 percent p.a.). The higher yield reflected the
continued high interest rate throughout the year.

Other income also included rental income, net of rental relief, of HK$181 million (2022/23: HK$130
million) from certain properties retained by the URA, and exchange loss of HK$54 million (2022/23:
HK$76 million) relating to Renminbi deposits due to the fluctuation of exchange rate.

(c) Administrative Expenses
Administrative expenses for 2023/24 of HK$676 million (2022/23: HK$637 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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