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(Expressed in Hong Kong dollars unless otherwise indicated)
NOTES TO THE FINANCIAL STATEMENTS
OF THE TRUST AND OF THE COMPANY
1. General information
HK Electric Investments Limited (the “Company”) was incorporated in the Cayman Islands on 23 September 2013 as an
exempted company with limited liability under the Companies Law 2011 (as consolidated and revised) of the Cayman
Islands. The Company has established a principal place of business in Hong Kong at Hongkong Electric Centre, 44
Kennedy Road, Hong Kong. The principal activity of the Company is investment holding.
On 1 January 2014, HK Electric Investments (the “Trust”) was constituted as a trust by a Hong Kong law governed Trust
Deed entered into between HK Electric Investments Manager Limited (the “Trustee-Manager”, in its capacity as the
trustee-manager of the Trust) and the Company. The scope of activity of the Trust as provided in the Trust Deed is limited
to investing in the Company.
The Share Stapled Units structure comprises (1) a unit in the Trust; (2) a beneficial interest in a specifically identified
ordinary share in the Company which is linked to the unit and held by Trustee-Manager as legal owner in its capacity as
trustee-manager of the Trust; and (3) a specifically identified preference share in the Company which is “stapled” to the
unit. The Share Stapled Units are jointly issued by the Trust and the Company and listed on the Main Board of The Stock
Exchange of Hong Kong Limited (the “Stock Exchange”).
2. Basis of presentation
Pursuant to the Trust Deed, the Trust and the Company are each required to prepare their own sets of financial
statements on a consolidated basis. The consolidated financial statements of the Trust for the year ended 31 December
2016 comprise the consolidated financial statements of the Trust, the Company and its subsidiaries (together the “Trust
Group”). The consolidated financial statements of the Company for the year ended 31 December 2016 comprise the
consolidated financial statements of the Company and its subsidiaries (together the “Group”).
The Trust controls the Company and the sole activity of the Trust during the year ended 31 December 2016 was investing
in the Company. Therefore, the consolidated results and financial position that would be presented in the consolidated
financial statements of the Trust are identical to the consolidated results and financial position of the Company with the
only differences being disclosures of share capital of the Company. The Directors of the Trustee-Manager and Directors of
the Company believe that it is clearer to present the consolidated financial statements of the Trust and of the Company
together. The consolidated financial statements of the Trust and the consolidated financial statements of the Company
are presented together to the extent they are identical and are hereinafter referred as the “consolidated financial
statements of the Trust and of the Company”.
The consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement
of financial position, consolidated statement of changes in equity, consolidated cash flow statement, significant
accounting policies and the related explanatory information are common to the Trust and the Company. Information
specific to the Company are disclosed separately in the relevant explanatory information in notes to the consolidated
financial statements.
The Trust Group and the Group are referred as the “Groups”.
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