2021-07-28-港交所-力宝专选中港地产_力宝专选中港地产ETF_（年报截至2021年3月31日）_38页_466kb

Summary of LIPPO SELECT HK & MAINLAND PROPERTY ETF Annual Report for the Year Ended 31 March 2021

Core Content

The LIPPO SELECT HK & MAINLAND PROPERTY ETF is a sub-fund of the Lippo Fund Series, established under the Trust Deed dated 11 June 2012. The annual report for the year ended 31 March 2021 includes the following financial statements:

• Statement of Net Assets
• Statement of Comprehensive Income
• Statement of Changes in Net Assets Attributable to Unitholders
• Statement of Cash Flows
• Notes to the Financial Statements
• Investment Portfolio (Unaudited)
• Statement of Movements in Investment Portfolio (Unaudited)
• Information on Exposure from Financial Derivative Instruments (Unaudited)
• Performance Record (Unaudited)
• Administration and Management

The report is prepared in accordance with International Financial Reporting Standards (IFRS) and includes the independent auditor's opinion, which confirms the financial statements present a true and fair view of the fund's financial position and performance.

Main Points

1. Trustee's Report

• The Trustee, BOCI-Prudential Trustee Limited, confirms that the Manager has managed the Sub-Fund in accordance with the Trust Deed.
• The report highlights that the Sub-Fund's investments are the principal element of its net asset value.
• The report is dated 28 July 2021.

2. Independent Auditor's Report

• The auditor, PricewaterhouseCoopers Certified Public Accountants, issued an unqualified opinion.
• The audit was conducted in accordance with International Standards on Auditing (ISAs).
• The auditor confirmed that the financial statements were properly prepared in line with the Trust Deed and SFC Code.
• The audit procedures included validation of the existence and valuation of investments, testing of direct confirmations from the custodian, and comparison of internal valuations with external sources.

3. Statement of Net Assets

• Total Assets (31 March 2021): HK$154,932,128
• Total Liabilities (31 March 2021): HK$93,588
• Net Assets Attributable to Unitholders (31 March 2021): HK$154,838,540
• Comparison to 2020:
  • Total Assets: Increased from HK$128,074,151 to HK$154,932,128
  • Net Assets: Increased from HK$127,996,499 to HK$154,838,540
• Investments: Valued at HK$154,052,366 as of 31 March 2021, representing the majority of the fund's assets.

4. Statement of Comprehensive Income

• Total Net Income (2021): HK$24,173,714
• Total Net Loss (2020): HK$24,462,463
• Key Components:
  • Dividend Income (2021): HK$7,158,910
  • Interest Income (2021): HK$12
  • Net Gain on Investments (2021): HK$17,014,792
  • Net Loss on Investments (2020): HK$30,203,739
• Expenses:
  • Total Operating Expenses (2021): HK$1,071,254
  • Total Operating Expenses (2020): HK$1,100,645
• Profit Before Tax (2021): HK$23,102,460
• Withholding Tax (2021): HK$61,469
• Total Comprehensive Income (2021): HK$23,040,991

5. Statement of Changes in Net Assets Attributable to Unitholders

• Net Assets at the Beginning of the Year (2021): HK$127,996,499
• Net Subscription of Units (2021): HK$3,801,050
• Total Comprehensive Income (2021): HK$23,040,991
• Net Assets at the End of the Year (2021): HK$154,838,540
• Units in Issue:
  • Beginning of 2021: 1,775,000 units
  • End of 2021: 1,825,000 units

6. Statement of Cash Flows

• Net Cash Used in Operating Activities (2021): HK$3,377,542
• Net Cash Generated from Financing Activities (2021): HK$3,801,050
• Net Increase in Cash and Cash Equivalents (2021): HK$423,508
• Cash and Cash Equivalents at the Beginning of the Year (2021): HK$333,555
• Cash and Cash Equivalents at the End of the Year (2021): HK$757,063

7. Key Accounting Policies

• The financial statements are prepared in accordance with IFRS and use the historical cost convention with revaluation for fair value through profit or loss.
• Investments are classified based on the fund's business model and contractual cash flow characteristics. All investments are classified as financial assets at fair value through profit or loss.
• Interest income is recognized using the effective interest method.
• Dividend income is recorded on the ex-dividend date.
• Transaction costs are expensed immediately.
• The fund uses Hong Kong Dollar as its functional and presentation currency.
• Foreign exchange gains and losses are included in the statement of comprehensive income.
• Units are redeemable in-kind or in cash and are classified as equity.
• The fund's objective is to track the performance of the Lippo Select HK & Mainland Property Index.

Key Information

• The fund is managed by Lippo Investments Management Limited and administered by BOCI-Prudential Trustee Limited.
• The fund's Stock Code is 2824.
• The net asset value per unit is calculated by dividing net assets attributable to unitholders by the total number of outstanding units.
• The fund is subject to Hong Kong law and governed by the Trust Deed.
• The Manager is responsible for the fund's operations and performance tracking.
• No material exceptions were identified during the audit, and the fund's financial statements are deemed to be free from material misstatement.
• The audit was conducted in accordance with ISAs and the auditor's independence was maintained under the IESBA Code.
• Key Audit Matters included the existence and valuation of investments, which were verified through direct confirmation and comparison with external pricing sources.

Conclusion

The LIPPO SELECT HK & MAINLAND PROPERTY ETF has maintained its financial position and performance in accordance with IFRS and the Trust Deed. The fund's net assets increased significantly from 2020 to 2021, with a substantial net gain on investments. The independent auditor confirmed the accuracy and fairness of the financial statements, and no material issues were identified during the audit. The fund's operations and structure remain consistent with its stated objective of tracking the Lippo Select HK & Mainland Property Index.