Report of the Direeters and Audited Financial Statements HONG KONG FREE PRESS LIMITED. Period from 18 Febreary 2015 (date of incorporation) 1031 December 2015HONG KONG FREE PRESS LIMITED ‘CONTENTS REPORT OF THE DIRECTORS INDEPENDENT AUDITORS’ REPORT AUDITED FINANCIAL STATEMENTS Statement of compebasive income States of fancial position Statement of changesin equity Statement cash ows [Notes t financial statamentsHONG KONG FREE PRESS LIMITED REPORT OF THE DIRECTORS. “The nelors present the fre report andthe suited nancial semen ofthe Company forthe period from 18 February 2015 (ate of incorporation 1031 December 2015. Prinipal aves ‘The principal actives of the Company conssied of the provision of fee Baglsh news media source on lel nd atonal aie ‘Rez and appropriations The results ofthe Company forthe petid from 18 February 2015 (date of incorporation) to 31 December 2015 at et a! nthe statement of caprchensive income on page 5. ‘Share canal ‘The Companys limited by euarantee with no share capital Dinssors ‘The diectors of the Company during the petid fom 18 February 2015 (dt of incorporation) to 31 December 2015 apd wp to date of thi report wee GRUNDY Thomas Wiliam (eppointed on 18 Febeusry 2015) FOWLER Even Frank {epponted on 18 Febrvary 2018) In accordance with atile 20 ofthe Companys artiles of association, he dirccors appointed by ctdiary resoltion shall old the office for an unlimited period of tine and the decors Sppoined by decisions a the dzectos stall lire fom office atthe ext annual general meeting fellowing te appointment nd shall be eligible for ecletion, exit ndsamity poison ‘Ano ne during the Fsncial year and up Co the date of approval of this report, there wes or, any permited indemnity provision being In fore forthe benefit of any ofthe directors of the Company Directors ness ‘Ato ime daring he pao fom 18 Febrany 201 (ate of inceporation) 1 31 December 2018, ‘was the Company parly 10 ay arangemeat 10 enable the Companys dieters to au bens by means ofthe sequston of sare ino debentures ofthe Compeny’or any ther body ‘corporate Direston interests in somrats [No dtectrs tad mata intrest, citherezelyor inde in any contact of significance to the business ofthe Conpeny to which the Company was a party ching the pied fiom 18 February 2015 (date of incorporation) to 31 December 2015, Management conta ‘No contacts conceming the management and administration of the whole orany substan pat ofthe busines ofthe Conpany were entered ino or existed during the period from 18 Febuary 2015 (ate of incorperain) t 31 December 2015, ‘Business review ‘The Company fall witha reporting exemption forthe financil year Accordingly the Company ‘sexed from prepare a busines even.ONG KONG FREE PRESS LIMITED REPORT OF THE DIRECTORS Auditors ‘The financial satemontshave been audited by Noble Partners CPA Company, who shall ete and, being eligible, offer theaseves for re-appointment. ON BEHALF OF THE EOARD Ditetors Hoong Kong 27 SEP 2boat #4 suenesan Penta nsreahot ome acon sa ss9 997 aoe a sa 7 sa Pic 5 oo Sah IR aaa INDEPENDENT AUDITORS'REPORT ‘Tothe members of Hong Kong Free Press Limited incorporated in Hong Kong wih nite iit by guarantee) We have suited th finial statements of Hong Kong rev ress Limite (ho "Company" se ‘out on pags So 13, which compris the statement of financial postion as at 31 December 2015, ‘andthe statement of comprehensive income, the statement of changes in equity andthe statement ‘of cath flows forthe pid fom 18 February 2015 (ate of incorporation to 31 December 2015, fn a sunay of significant accounting polices and other explanatory infemation, Director! responsibilty forthe faancal statements “The decors ofthe Company ae responsible forthe preperation of financial statements that give true and fee view in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institue of Cetifed Public Ascountnts (Ihe “HKICPA") and the Hong Kong Companies Orlinance, and for sich itera contol atthe diesors determine ie neestry to coubl the preparation of financial statements that ae fie fom material misstatement, whether {he to fined oer Auaitors' responsi (Our responsibilty isto expres an opinion on these financial statements based on ou audit. Our report is made solely to you, as 4 body, in accordance with section 405 ofthe Hong Kong CCampanies Ordnance, and for no ether purpose. We donot assume responsibility towards © secept ibility to any ee person forthe contents ofthis repos. We conducted ou aut in acordaace with Hong Kong Standards on Anting issued by the Hong Kong Insitute of Catfed Public Accountants. Those standards requir tat we comply with ethical regimens ani plan and perform the auto obtain resoaable assurance as to wheter the nancial statements ae fee om materia misstatement ‘An audit involves performing procedures to obiain audit evidence about the amounts and isclosures in the Fimncal safements. The procedures selected depend on the auditor's Judgement, including the assessment of the vsks of material misstatement of the nancial ‘Satements, whether die 10 ffavd or err. In making those risk assessments, the auditor ‘onsiers internal con eleva to the ens preparation of the Financial sttements ta {rue and fr view in order datign audit progres hal ae spproprite isthe ctcunstanes, bal ‘ot for the purpose of expressing an opinion on the effesiveness ofthe eats itera coir ‘An audit also iplodes evaluating the sppropitenss of accounting policies used and the reasonableness of aecomting estimates made By the dieters, as well as evaluating the overall, resentation ofthe financial statements ‘We below that suit evidence we have obtained is sfcent and appropriate o provide m basi Forour aut opinionINDEPENDENT AUDITORS’ REFORT (continued) “Tothe members of Hong Kong Free Press Limited (reorporaed in Hong ong with linied Tabi by guarantee) Opinion 1m our opinion, the fnuncial statements give a ru and fir view of the financial poston of the ‘Company’ as a 31 December 2015 and ofits Binal performance and eas flows fo the pexod fiom 18 February 2013 (date of incospaation) to 31 December 2015 in accordance with Hong Kong Finacial Reporting Slandards and have Been propel prepared in compliance withthe Heng Kong Companies Ordinavec. (ok Paes GA O, [Noble Parnes CPA Company CCtfied Public Ascourants Hong Kong 27 SEP 116 suena Banca ott Baars a os2 or so BH isa smeHONG KONG FREE PRESS LIMITED STATEMENT OF COMPREHENSIVE INCOME Pod fom 18 Febuary 2015 (date of incorporation) to 31 December 2015 Period from 1a February 2013, ate of incorporation) Noles “to31 December 2015, Ks INCOME 4 Donation income 1788098 ‘Advertising income 550030 vent income 11,900 Bank interest income 5 Discounts ven 6.000) 04.038, EXPENDITURE “Auditor remunestn +4000 ‘nk earges 31 ‘Legal and professional fees 7860 ‘Meals and entertsinnent, war Payroll $63,303 Madsiory provide fond 263852 Office and sundry expenses 59,62 Stationery an pits 6284 Seling and delivery sxpenses 8050 ‘Advertising expenses 6559 Traveling expenses 180 Webi 6,003 708.436 ‘SURPLUS BEFORE TAX. Tax 6 ‘SURPLUS AND TOTAL COMPREHENSIVE INCOME FOR THE YEARHONG KONG FREE PRESS LIMITED STATEMENT OF FINANCIAL POSITION 31 December 2015 Notes 2o1s UKs (CURRENT ASSETS “Trade receivables 6297 (Casha bank balances 1 193,190 ‘Toa eurent asses 198.387 ‘CURRENT LIABILITIES Other payables and cers 8 103,390 ‘Tax payne 3303 “otal cen lisilities [Net current assets and net ase [REPRESENTED BY: ‘Accumulated surplos Director DiresiorHONG KONG FREE PRESS LIMITED STATEMENT OF CHANGES IN EQUITY Pevod fro 18 February 2015 (date of incorporation) fo 31 December 2015 Ks ‘AL 18 Rebmary 2015 (dt of incorporation) Surpas forthe psi nas [AL Desrber2015 ousHONG KONG FREE PRESS LIMITED STATEMENT OF CASA FLOWS Petiod fiom 18 February 2015 (at of incorporation to 31 December 2015 Period from 18 Februny 2015 (ate incorporation) Notes “fo 31 December 2015 KS ‘CASH FLOWS FROM OPERATING ACTIVITIES. Surpas before tx 95,597 Operating cash lows blore working expt changes oso ‘Werkng apt changes: - Increase in trade receivables (697) Inrease in oes payables ard accruals 102.390 [Net ath flows from operating sets 19,190 NET DECREASE IN CASH AND CASH EQUIVALENTS 192,190 Cash and cash equivalents at the begining of period i" (CASH AND CASH EQUIVALENTS AT END OF PERIOD 7 192,190 ANALYSIS OF BALANCE OF CASH ‘AND CASH EQUIVALENTS ‘Cash and bank balsas 1 192190