Hong Kong Listed Limited - EY

1 Hong Kong Listed Limited Illustrative Report of the Directors and Financial Statements for the year ended 31 December 2020 (i) This set of illustrative financial statements is for a fictitious company Listed on the Main Board ( MB ) of The Stock Exchange of Hong Kong Limited (the Stock Exchange ). For a company Listed on GEM of the Stock Exchange ( GEM ), equivalent disclosure requirements are also included on the left-hand side of pages 1 to 187 for reference. The applicable disclosure requirements under the Hong Kong Companies Ordinance are also included on the left-hand side pages. As Hong Kong Listed Limited has a 31 December year end, these financial statements disclose the effects of changes in accounting policies as a result of the revised Hong Kong Financial Reporting Standards ( HKFRSs ) which are first effective for financial years beginning on or after 1 January 2020.

2 These illustrative financial statements are general purpose financial statements and do not attempt to show all possible accounting and disclosure requirements, nor do they include particular disclosures required by the Stock Exchange or other regulatory bodies for specialist industries, such as banks (see Appendix 15 of the Listing Rules and the Guideline on the Application of the Banking (Disclosure) Rules issued by the Hong Kong Monetary Authority), financial conglomerates, insurance companies and biotech companies (see chapter 18A of the Listing Rules). HKFRSs as at 31 October 2020 The Hong Kong Institute of Certified Public Accountants (the HKICPA ) has issued the Conceptual Framework for Financial Reporting 2018 and the following revised HKFRSs, which are effective for the financial year ended 31 December 2020.

3 Amendments to hkfrs 3 Definition of a Business Amendments to hkfrs 9, HKAS 39 and hkfrs 7 Interest Rate Benchmark Reform Amendments to HKAS 1 and HKAS 8 Definition of Material Hong Kong Listed Limited is an existing preparer of financial statements in accordance with HKFRSs and it is a corporate company which is not an investment entity as defined in hkfrs , so these financial statements do not reflect any additional requirements for first-time adopters under hkfrs 1 First-time Adoption of Hong Kong Financial Reporting Standards, and for investment entities under hkfrs 10 and hkfrs 12. (ii) Except for the amendment to hkfrs 16, Hong Kong Listed Limited does not early adopt the following HKFRSs which were in issue as at 31 October 2020 but are not yet effective for the financial year ended 31 December 2020.

4 Amendments to hkfrs 3 Reference to the Conceptual Framework (apb 1 January 2022) Amendments to hkfrs 9, HKAS 39, hkfrs 7, hkfrs 4 and hkfrs 16 Interest Rate Benchmark Reform - Phase 2 (apb 1 January 2021) Amendments to hkfrs 10 Sale or Contribution of Assets between an Investor and its Associate or and HKAS 28 (2011) Joint Venture* Amendment to hkfrs 16 Covid-19-Related Rent Concessions (apb 1 June 2020) hkfrs 17 Insurance Contracts (apb 1 January 2023)** Amendments to hkfrs 17 Insurance Contracts (apb 1 January 2023)** Amendments to HKAS 1 Classification of Liabilities as Current or Non-current (apb 1 January 2023)** Amendments to HKAS 16 Property, Plant and Equipment: Proceeds before Intended Use (apb 1 January 2022) Amendments to HKAS 37 Onerous Contracts - Cost of Fulfilling a Contract (apb 1 January 2022) Annual Improvements to HKFRSs Amendments to hkfrs 1, hkfrs 9, Illustrative Examples accompanying 2018-2020 hkfrs 16, and HKAS 41 (apb 1 January 2022)

5 Apb means effective for annual periods beginning on or after * No mandatory effective date yet determined but available for adoption ** As a consequence of the amendments to hkfrs 17 issued in October 2020, the effective date of hkfrs 17 was deferred to 1 January 2023, and hkfrs 4 was amended to extend the temporary exemption that permits insurers to apply HKAS 39 rather than hkfrs 9 for annual periods beginning before 1 January 2023 ** As a consequence of the amendments to HKAS 1 issued in August 2020, Hong Kong Interpretation 5 Presentation of Financial Statements - Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause was revised in October 2020 to align the corresponding wording with no change in conclusion Please refer to pages 48 to 51, and 196 to 197 for further details about the recent developments of new HKFRSs.

6 It is important to note that these financial statements will require continual updates as and when new or revised HKFRSs become effective. (iii) In addition to those HKFRSs on page (ii), the following HKFRSs have not been dealt with in these illustrative financial statements: HKAS 26 Accounting and Reporting by Retirement Benefit Plans hkas 27 (2011) Separate Financial Statements HKAS 29 Financial Reporting in Hyperinflationary Economies HKAS 34 Interim Financial Reporting HKAS 41 Agriculture hkfrs 1 First-time Adoption of Hong Kong Financial Reporting Standards hkfrs 4 Insurance Contracts hkfrs 6 Exploration for and Evaluation of Mineral Resources hkfrs 14 Regulatory Deferral Accounts HK(IFRIC)-Int 2 Members Shares in Co-operative Entities and Similar Instruments HK(IFRIC)-Int 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds HK(IFRIC)-Int 6 Liabilities arising from Participating in a Specific Market Waste Electrical and Electronic Equipment HK(IFRIC)

7 -Int 7 Applying the Restatement Approach under HKAS 29 Financial Reporting in Hyperinflationary Economies HK(IFRIC)-Int 12 Service Concession Arrangements HK(IFRIC)-Int 14 HKAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction HK(IFRIC)-Int 16 Hedges of a Net Investment in a Foreign Operation HK(IFRIC)-Int 17 Distributions of Non-cash Assets to Owners HK(IFRIC)-Int 19 Extinguishing Financial Liabilities with Equity Instruments HK(IFRIC)-Int 20 Stripping Costs in the Production Phase of a Surface Mine HK(SIC)-Int 10 Government Assistance No Specific Relation to Operating Activities HK(SIC)-Int 25 Income Taxes Changes in the Tax Status of an Entity or its Shareholders HK(SIC)-Int 29 Service Concession Arrangements: Disclosures HK(SIC)-Int 32 Intangible Assets Web Site Costs Narrative shown on the left-hand side of each page indicates the applicable hkfrs paragraphs, the Hong Kong Companies Ordinance and rules of the Stock Exchange or other regulatory bodies that describe the specific disclosure requirements.

8 In certain cases, for the purpose of this document, the requirements have been paraphrased. Reference should be made to the source for the complete text. The information shown may not present every applicable disclosure requirement. Certain additional illustrative disclosures which are not applicable to Hong Kong Listed Limited are highlighted in grey on the right-hand pages for reference. A Listed company needs to comply with the minimum disclosure requirements as specified in Appendix 16 of the Listing Rules (GEM Rules Chapter 18). A Listed company which is not incorporated in Hong Kong is also required to comply with the disclosure requirements of the Hong Kong Companies Ordinance and subsidiary legislation (A16(28)) (GEM Rules and ). This publication does not include all the disclosures required by the Listing Rules and the Hong Kong Companies Ordinance.

9 The disclosures presented in these illustrative financial statements are examples only. Actual disclosures should reflect the particular circumstances of the entity concerned. In addition, there may be more than one way in which disclosures can be made whilst still complying with HKFRSs or other requirements. In case of doubt as to the disclosure requirements, reference should be made to the relevant source. This publication does not include illustrative disclosures of the impact of the covid-19 pandemic, except for the covid-19-related rent concessions in the amendment to hkfrs 16. Entities need to carefully evaluate and consider the impact of the covid-19 pandemic on their financial reporting and, where applicable, provide relevant entity-specific disclosures. (iv) HKAS 1 refers to a statement of financial position and a statement of profit or loss and other comprehensive income or a statement of profit or loss.

10 HKAS 1 allows an entity to use titles for the statements other than those used in HKAS 1. For example, an entity may use the title statement of comprehensive income instead of statement of profit or loss and other comprehensive income (HKAS ). Concerning the use of the terms Mainland China and People's Republic of China/PRC in the main body (right-hand pages) of these financial statements, the term People's Republic of China/PRC has only been used when referring to a legal status, such as for a company established/registered in the PRC . Elsewhere in the financial statements, the term Mainland China has been used, as in the subsidiary's operations are in Mainland China . The purpose of this wording is to differentiate between Hong Kong and Mainland China, as both form part of the PRC. (Where the left-hand page disclosure requirements refer to the PRC , this has been left as it is, to accurately reflect the wording of the source document.)