國富浩華 ( 香港 ) 會計師事務所有限公司 Crowe Horwath (HK) CPA Limited Member Crowe Horwath International Newsletter 2015 7 This issue of Newsletter published by Crowe Horwath (HK) CPA Limited provides an update on tax, financial reporting, other technical issues, as well as the company and its affiliates activities and our community involvement. Please click http:// to access the latest issue available in the Insights section of our website. You can also click the back issues of all prior News Express and Newsletter for review. http:// Content Launch of Our Three New Business Lines 2-3 Crowe Horwath International 2015 Asia Pacific Regional Meeting 3 Three More Recent Successful IPO Cases 4 Joining the Islamic International Trade Co-operation 4 Development Summit Chinese Enterprises Going Overseas Global Risk Management 5 Forum and Financing & Insurance Seminar A Valuer s Perspective: Value of A Company s Sustainability 5 Our Director Ms Stella Law Spoke on IP Financing 6 Seminar on Cross Border Taxation in China Update 6 Recruitment Talks at Universities 6 Sponsoring AWAHK s Opportunities & Challenges for Young 7 Accountants in HK - 2015 Competition Tax Debate Competition of TIHK 7 Our Chairman Awarded for His 100th Blood Donation by 7 Hong Kong Red Cross 8 2015 9 9 9 10 10 10 10 11 11-2015 11 100 11 Disclaimer: The content in this publication is of general information only. It is not offered as advice and should not be taken as such. We expressly disclaim all liabilities to any person for any reliance placed on the contents of this publication. No client or other reader should act or refrain from acting on the basis of the contents of this publication without seeking specific professional advice. Crowe Horwath (HK) CPA Limited is a member of Crowe Horwath International, a Swiss verein (Crowe Horwath). Each member firm of Crowe Horwath is a separate and independent legal entity. Crowe Horwath (HK) CPA Limited and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath or any other member of Crowe Horwath and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath or any other Crowe Horwath member. 2015 Crowe Horwath (HK) CPA Limited 2015 1
Newsletter Launch of Our Three New Business Lines Whether initiated for the purposes of mergers & acquisitions, initial public offerings, business planning, due diligence, tax planning, deals on real estates, or simply budgeting and financial reporting, consultancy services are crucial in contributing to the success of a business. We understand our clients need, and are proud to expand our consultancy services in the following aspects: 1. Real Estate Consultancy New Our professional team from Crowe Horwath (HK) Consulting & Valuation Limited comprises chartered surveyors and accredited business appraisers who are equipped with specialized knowledge and are experienced in providing solutions to all players in the real estate industry including developers, investors, landlords, tenants, government entities and so forth. Our real estate consulting team dedicates effort in catering the specific needs of our clients and provides tailored and unique solutions which allow our clients to successfully achieve their goals. Our scope of services includes, but not limited to: Provisions Highest and best use analysis Feasibility study Market study Property investment strategy consultancy Negotiation in relation to land premium/lease modification Preparation of tender for developers in relation to property development projects Retail consultancy providing market and tenants analysis and making recommendation For more information, please contact our Director, Mr Leo Lo at leo.lo@crowehorwath.hk 2. Valuation and Financial Modeling Services New Our dedicated team members are also experienced in providing valuation advices to a wide range of clients on all types of assets, to name but a few: Real estate development sites, residential units, office buildings, shopping malls, car parks, logistic premises, airports and other specialized properties Plant & machinery Business/equity interest Infrastructure sewage/solid waste treatment plants, power plants, toll roads/tunnels Intangible assets trademarks, copy rights, customer relationships, contracts & licenses, know-how Biological assets livestock, plants, forestry Financial instruments derivatives, convertible bonds, warrants, swaps In business decision making process, timely analysis and in-depth information are crucial for our clients to gain deeper insight into the financial and operational situation of a company. In this regard, we can assist clients to prepare, build up and review financial models. We also offer assistance and expertise in making projections and writing business plans. Our modeling aids our clients during: Budgeting Business planning Negotiation of joint-ventures/mergers and acquisitions Due diligence Tax planning Pricing analysis ns For more information, please contact our Director, Ms Stella Law at stella.law@crowehorwath.hk. 3. Environmental, Social and Governance (ESG) ew With growing evidence, companies investment and effort made in Environmental, Social and Governance (ESG) area, integrated into investment analysis and decision making, may offer long-term performance competitive advantages. Embracing ESG or sustainability factors in business development becomes a means to identify companies with superior business models. In fact, global leading companies and brands have increasingly focused on ESG matters in recent years. Some Hong Kong listed companies have already adopted certain ESG international guidelines or standards, such as those of Global Reporting Initiative, Carbon Disclosure Project and United Nations Global Compact. In addition to raising of the obligation level to comply or explain by 2015 regarding the HKEx ESG Reporting Guide in Appendix 27 of the Main Board Listing Rules and Appendix 20 of the GEM Listing Rules, many organizations, listed companies in particular, are devoting more resources in complying with and tackling these disclosure requirements and concerns. Preparing a professional ESG reporting involves specialized knowledge, experience and judgment, and an ESG advisor can assist in evaluating the ESG achievements of an organization, making proper disclosures in ESG reporting, setting up of short term and long term improvement plans and thus bringing values to the organization. Our team has solid experience in offering our clients with tailored and practical 2
Newsletter solutions on business, consulting and valuation needs. We are here to provide value-added services like setting KPIs for ESG initiatives, stakeholders engagement effectiveness review, advising on energy and resources saving and waste reduction, drafting interim and/or annual ESG reporting based on the ESG international guidelines or standards and in accordance with the international or local regulations and statutory requirements. Crowe Horwath International 2015 Asia Pacific Regional Meeting For more information, please contact our Directors, Mr Alex Leung at alex.leung@crowehorwath.hk or Ms Ester Ip at ester.ip@crowehorwath.hk Our Track Record Recently, Crowe Horwath (HK) Consulting & Valuation Limited has been appointed by a client applying for IPO, namely Gudou International Holdings Limited, as an independent Hong Kong industry consultant to conduct a market analysis and to provide a research report on the hot spring and hotel industry and the tourism real estate industry in the PRC, Guangdong Province and Jiangmen City from 2008 to 2018. The client is a hot spring resort and hotel operator and a tourism property developer in the PRC, principally engaged in the operation and management of the resort and hotel facilities of Gudou Hot Spring Resort and the development and sale of tourism properties located at Gudou Hot Spring Resort. In addition, we are a professional surveying firm recognised by the Hong Kong Insititute of Surveyors. We have also been accepted as an approved valuer of the Link Management Limited from April 2015 onwards and thus providing us opportunities to bid for any tender for future development projects from Link REIT. Secretary for Financial Services and the Treasury of HKSAR Professor KC Chan (4th right) and our network s senior executives. The Crowe Horwath International 2015 Asia Pacific Regional Meeting was held in Hong Kong from 15 to 17 April 2015 at the Langham Hotel. Crowe Horwath (HK) CPA Limited was the hosting member firm of this annual event. About 100 delegates of our fellow member firms from over 20 countries joined the meeting. The three-day conference provided a good platform for all partners/ senior executives to get together for networking, exchange of ideas and update on the profession. The climax of the event was the networking session and cocktail reception at the Langham Hotel on 16 April 2015 with the Secretary for Financial Services and the Treasury of HKSAR Professor KC Chan as Guest of Honor. During the networking session, attendees shared experiences, new know-how and updated market information at the cocktail party. Before the meeting, the attendees enjoyed a relaxing day with participation in the Crowe Horwath Golf Challenge at the Hong Kong Golf Club in Fanling and a mid-week night race at the Hong Kong Jockey Club in Happy Valley. On 17 April 2015, the delegates had a cruise tour at Victoria Harbour followed by a seafood dinner at Lei Yue Mun where they could have nostalgic feel of the traditional characteristics of old Hong Kong s fishing village. On the main conference day, our Chairman and CEO Mr Charles Chan gave a presentation on our company in which he talked our benefits of being a member firm of Crowe Horwath International. He also briefly introduced the history, services scope, strength and prospect development of our company with a highlight of challenges the Hong Kong accounting profession is now facing. On specialty day, our Director Ms Ivy Chua gave an account of auditing and reporting in Hong Kong with presentation on favourable environment for conducting business in Hong Kong such as low tax rate, free flow of investment, popular venue for enterprises headquarters, robust stock market, foreign exchange market, etc. During the tax breakout session, our Executive Director, Chairman of the Crowe Horwath Asia Pacific Tax Committee, Mr Wilson Tam gave a speech on Capitalizing on the Opportunities and Meeting Greater Challenge. The speech given by Mr Tam included the following topics: A briefing on the action plan of International Tax Committee A look back at performance for the past 12 months Capitalizing on the opportunities Future action plan 3
Newsletter Three More Recent Successful IPO Cases We acted as the reporting accountants and auditors of the following companies to help them tap Hong Kong capital market through initial public offerings. a Hong Kong-based IT service provider, the Group is principally engaged in the provision of IT application and solution development, secondment services, maintenance and support services, as well as IT infrastructure solutions. Our Chairman and CEO Mr Charles Chan (2nd right), Audit Director Ms Betty Tse (2nd left) and Audit Manager Mr Patrick Poon (right) attending the listing ceremony of Winto Group to congratulate the Group s Chairman Mr Kwan Shun Keung Timmy, (3rd left ) and Executive Director Ms Yip Tsz Lam (3rd right) Winto Group (Holdings) Limited (stock code: 08238) was successfully listed by way of placing on the GEM Board of the Hong Kong Stock Exchange on 16 February 2015. Winto Group is principally engaged in the sales and free distribution of Chinese language lifestyle magazines in Hong Kong through the distribution services provided by the distributor; and the sales of advertising spaces in the magazines. ICO Group Limited (stock code: 08140) was successfully listed by way of placing on the GEM Board of the Hong Kong Stock Exchange on 18 March 2015. As Pa Shun Pharmaceutical International Holdings Limited (stock code : 00574) was successfully listed on the Main Board of the Hong Kong Stock Exchange on 19 June 2015. It is an integrated pharmaceutical company based in southwestern China with operations in three business segments: pharmaceutical distribution, self-operated retail pharmacy and pharmaceutical manufacturing. We congratulate the above three companies and their Boards of Directors on their successful listings. Joining the Islamic International Trade Cooperation Development Summit Managing partner of Ruihua CPAs Mr Yang Jian Tao (3rd right) and our Audit Director Ms Ivy Chua (2nd left) at the signing ceremony of the Strategic Cooperation Agreement between China and Malaysia on Halal Certification Service. Managing partner of Ruihua CPAs Mr Yang Jian Tao, our Audit Director Ms Ivy Chua and International Liaison Director Mr Charbon Lo were invited as VIPs to participate in the Islamic International Trade Cooperation Development Summit between the PRC government and Malaysia government held in Beijing on 18 May 2015. Our firm and Ruihua CPAs are the only Hong Kong and PRC accounting firms being invited as VIPs of the event. More than 500 senior executives of international well-known Islamic enterprises in China, Consulates of Muslim countries in China and media delegates also attended the event. At the summit, CCPNT (China Council for the Promotion of Nationalities Trade), JAKIM (the Department of Islamic Development Malaysia) and HDC (Halal Industry Development Corporation) officially signed the Strategic Cooperation Agreement between China and Malaysia on Halal Certification Service. The Halal certification standards developed by HDC of Malaysia on Halal food and products receive widespread recognition among Muslims worldwide. Such cooperation between Malaysia and the PRC social organization will help the PRC promote its Halal products in the international market and facilitate Halal trade with other Muslim countries. The event was jointly arranged and supported by the PRC government, Malaysia government and MCH HALAL INTERNATIONAL HOLDINGS LIMITED (a company incorporated in Hong Kong) which is the sole authorized company for the Halal certification business in the PRC. 4
Newsletter Chinese Enterprises Going Overseas Global Risk Management Forum and Financing & Insurance Seminar Our Chairman and CEO Mr Charles Chan spoke on The Taxation Risks For Chinese Enterprises Investing Overseas and Taxation Risk Management on Transfer Pricing for Multi-national Enterprises at the Chinese Enterprises Going Overseas Global Risk Management Forum and Financing & Insurance Seminar held in Shanghai on 19 March 2015. At the seminar, Mr Chan gave an analysis on common taxation risks encountered by Chinese enterprises upon overseas investments from the following perspectives: tax resident status recognition, eligibility of enjoying tax benefits and claiming of the tax credit on overseas tax payments. He pointed out that Chinese tax resident enterprises are taxed on the worldwide income in China while non-tax resident enterprises may bear different amount of tax liabilities due to their tax resident status. Many Chinese enterprises misunderstood the procedures to obtain foreign tax credits on overseas tax paid. The eligibility of claiming foreign tax credit would depend on a number of factors including whether there are tax sparing arrangements under the double tax treaties or arrangements signed between China and the corresponding tax treaty country. In case of eligibility to enjoy tax sparing arrangements, the enterprises need to provide the in-charge tax authority with evidence regarding the tax settlement or exemption on overseas income in order to claim the corresponding tax credits. He also gave an account of taxation risk management on transfer pricing for multi-national enterprises including definition of transfer pricing, and tightening up of tax administration on transfer pricing by taxation authorities. The seminar attracted more than 500 representatives from state-owned enterprises, private-owned enterprises, foreign enterprises and multi-national enterprises in China. They had in-depth discussion on risk management and resolution for financing difficulties. A Valuer s Perspective: Value of A Company s Sustainability Our Director Ms Stella Law spoke on the value of a company s sustainability at a seminar organized by Accounting Development Foundation on 26 March 2015. The seminar received an overwhelming response with around 100 attendees. Ms Law introduced the basic components of Environmental, Social and Governance (ESG) Reporting, its value for a company, ESG disclosure and ESG Reporting Standards. According to data from Sustainability Disclosure database of Global Reporting Initiative (GRI), the number of ESG reports published has been increasing to more than 4,000 in 2014 from about 2,200 in 2010, representing an increase of over 80%. This upward trend of publishing ESG reports may reflect the growing concern of sustainability among enterprises. Over the past five years, Hong Kong Stock Exchange has gradually planned to request the listed companies to comply with the ESG Reporting Guideline from voluntary basis to statutory requirements. ESG can bring a company with benefits such as gaining confidence of investors and consumers, bringing improved corporate reputation, greater risk management ability, increased employees loyalty, higher productivity and efficiency. On the other hand, the company has to involve time and cost, human effort and on-going reporting. Ms Law suggested that the listed companies can follow Hong Kong Stock Exchange s guide to write an ESG report. ESG reporting usually covers workplace quality, environmental protection, community involvement and operating practices. She also illustrated the long term values of ESG with some examples of well-known corporations in airline, property management and bank. Ms Stella Law (left) receiving a souvenir from the seminar organizer 5
Newsletter Our Director Ms Stella Law Spoke on IP Financing Our Director Ms Stella Law was a keynote speaker at a HKTDC s seminar. Our Director Ms Stella Law spoke on the topic of Using Hong Kong as an ideal platform for Intellectual Property (IP) Trading at a seminar organized by Hong Kong Trade Development Centre, Shandong Intellectual Property Office of the PRC and relevant organizations in Jinan on 28 May 2015. Ms Law said that more and more multi-national enterprises and SMEs sought IP financing as an alternative to fund raising. IP financing channels include IP loan, IP securitization, IP sale and leaseback and private equity. During the process of IP financing, IP valuation is essential for IP owners and investors under different contexts. The role of valuer is very significant because valuation can quantify the value of IP which is usually used to achieve IP financing, financial report, tax compliance, litigation, disposal or licence. Seminar on Cross Border Taxation in China Update Our Executive Director Mr Wilson Tam spoke on Structuring for Investment in China under the New Tax Landscape at a seminar organized by the Taxation Institute of Hong Kong on 22 May 2015. He shared with attendees the recent updates on China tax regulations which affected non tax residents and cross-border transactions, tax environment in China and the holding structure for investment in China, followed by a case study on a cross-border restructuring. Our Executive Director Mr Wilson Tam (right) was a speaker at the TIHK s seminar. Recruitment Talks at Universities Mr Edmund Li introducing the job opportunities available and career path in our company to the students of Hong Kong Baptist University. Many graduates to-be from universities may have doubts on career planning. This year we have held recruitment talks in four local universities to help the students better understand the career prospect and potential job opportunities in the accounting profession. The first talk was held at Hong Kong Polytechnic University on 27 January 2015, followed by Hong Kong Baptist University on 10 February 2015, Shue Yan University on 10 March 2015 and the City University of Hong Kong on 24 March 2015. During the career talks, the students had face-to-face communication with our Director Ms Pammy Fung, Senior Manager of Technical & Training Department Mr Edmund Li and Manager of Human Resources Miss Peggy Yam. Mr Li gave a briefing on the professional services we provided which include audit and IPO, tax and trust, IT audit and data security, business and property valuation, human capital advisory, etc. to assist the students understand their areas of interest. This round of recruitment talks at the above-mentioned universities received an overwhelming response with a total attendance of nearly 400 students. 6
Newsletter Sponsoring AWAHK s Opportunities & Challenges for Young Accountants in HK - 2015 Competition To encourage young people in the accounting profession, we rendered full support to the Opportunities & Challenges for Young Accountants in HK - 2015 Competition which was organized by the Association of Women Accountants Hong Kong ( AWAHK ) and held on 23 May 2015. Mr Wilson Tam, together with other panel judges, members of AWAHK and the participating students of the competition. Our Executive Director Mr Wilson Tam acted as one of the panel judges in the Competition. Mr Tam also shared his views with the students on the topics including opportunities and challenges of young accountants in Hong Kong, the changing global trends and business needs affecting the accounting and finance profession, and the prospect for young accounting professionals. Besides, our company sponsored the champion prize of the competition. Mr Tam presented the prize to the winning student on behalf of our company. The competition aims at providing an insight and facilitating exchange of views among students from higher education institutes on the opportunities and challenges on career progression in the accounting profession. The competition received positive feedbacks with nearly 40 competing teams from various local universities and higher education institutes. Tax Debate Competition of TIHK Mr Wilson Tam (left, rear row), other judges and the winning teams. Our Chairman Awarded for His 100th Blood Donation by Hong Kong Red Cross Our Chairman and CEO Mr Charles Chan is enthusiastic about charitable causes and community services. On 26 April 2015, he gave his 100th blood donation at Central District Donor Centre of Hong Kong Red Cross Blood Transfusion Service. In recognition of his 100th blood donation, Mr Chan was awarded with certificate of appreciation and souvenir by Hong Kong Red Cross Blood Transfusion Service. Our Executive Director Mr Wilson Tam acted as a judge at the first Tax Debate Competition (Preliminary contest) held on 16 May 2015 organised by the Taxation Institute of Hong Kong (TIHK). Seven local universities participated in the two-day competition. Topics of Tax Debate Competition mainly focused on levying new taxes, combating tax evasion, offering tax concessions to encourage technology development and support young people starting business, as well as lowering tax rates to attract more investments and support SMEs development. The Champion went to The Chinese University of Hong Kong (Team 2) while the first and second runner-up went to The Open University of Hong Kong and Hong Kong Baptist University respectively. Mr Charles Chan is a long time blood donor to Hong Kong Red Cross. 7
公司通訊 2015 年 7 月 三項嶄新服務 1. 房地產諮詢服務 盧銘恩先生 (leo.lo@crowehorwath.hk) 2. 估值及財務分析服務 羅珏瑜女士 (stella.law@crowehorwath.hk) 3. 環境 社會及管治諮詢服務 ESG ESG ESG ESG 27 20 2015 ESG KPI 梁沛泓先生 (alex.leung@crowehorwath.hk) 或葉慧敏女士 (ester.ip@crowehorwath.hk) 我們的往績 2008 2018 2015 4 8
9 公司通訊 2015 年 7 月國富浩華國際 2015 年亞太區會議再添三個成功上市個案 2015 2015 4 15 17 20 100 2015 4 16 08238 2015 2 16 08140 2015 3 18 2015 4 17 參與 一帶一路 清真國際貿易合作發展峰會 5 18 500 HDC HDC 00574 2015 6 19
10 公司通訊 2015 年 7 月羅珏瑜董事談知識產權融資 2015 5 28 IP IP 中國企業走出去風險發佈會暨融資與保險論壇 2015 3 19 中國最新跨境稅務研討會 2015 5 22 500 從估值師的角度看一間公司之可持續性價值 2015 3 25 ESG ESGESG ESG 2010 2,200 2014 4,000 80% 5 ESG IP IP IP ESG ESG ESG
公司通訊 2015 年 7 月 大學招聘講座 贊助香港女會計師協會 香港年輕會計師的機遇與挑戰 - 2015 比賽 2015 1 27 2015 2 10 2015 3 10 2015 3 24 400 AWAHK 2015 5 23-2015 香港稅務學會稅務辯論比賽 40 2015 5 16 7 陳維端主席捐血 100 次獲香港紅十字會嘉許 2015 4 26 100 100 11
For more information, please contact: 如欲索取更多有關資料, 歡迎聯絡 : 國富浩華 ( 香港 ) 會計師事務所有限公司 Crowe Horwath (HK) CPA Limited Member Crowe Horwath International 9/F Leighton Centre, 77 Leighton Road, Causeway Bay, Hong Kong 77 9 E-mail : info@crowehorwath.hk Telephone : +852 2894 6888 Facsimile : +852 2895 3752 Service Hotline : +852 2894 6611 About Crowe Horwath International 國富浩華國際簡介 公司通訊 2015 年 7 月 Crowe Horwath International is ranked among the top 10 global accounting networks with over 200 independent accounting and advisory services firms with 700 offices in 120 countries around the world. Crowe Horwath International's member firms are committed to impeccable quality service, highly integrated service delivery processes and a common set of core values that guide our decisions daily. Each firm is wellestablished as a leader in its national business community and is staffed by nationals, thereby providing a knowledge of local laws and customs which is important to clients undertaking new ventures or expanding into other countries. Crowe Horwath International member firms are known for their personal service to privately and publicly held businesses in all sectors and have built an international reputation in the areas of audit, tax and advisory services. Information can be obtained at: www.crowehorwath.net 200 700 120 Our Contacts 我們的人員 www.crowehorwath.net Professional Services 專業服務 Contact Person 聯絡人 Telephone 電話 E-mail 電郵 Audit & Assurance Ms Ivy Chua +852 2894 6789 ivy.chua@crowehorwath.hk Audit & Technical Support Mr Raymond Tsui +852 2894 6661 raymond.tsui@crowehorwath.hk Business & Accounting Services Ms Penny Chan +852 2894 6896 penny.chan@crowehorwath.hk Business & Financial Instruments Valuation Ms Stella Law +852 2894 3506 stella.law@crowehorwath.hk Business Operations Ms Pammy Fung +852 2894 6861 pammy.fung@crowehorwath.hk China Tax, International Tax Mr Wilson Tam +852 2894 6603 wilson.tam@crowehorwath.hk Company Secretarial Services, Greater China One-Stop Business Service Ms Wendy Tam +852 2894 6840 co.sec@chg.hk Corporate Restructuring & Insolvency Ms Ivy Chua +852 2894 6789 ivy.chua@crowehorwath.hk Data Security and IT Audit Ms Ester Ip +852 2894 6191 ester.ip@crowehorwath.hk ESG (Environmental, Social & Governance) & Sustainability Consulting (ESG) / Ms Ester Ip +852 2894 6191 ester.ip@crowehorwath.hk HK IPO Mr Charles Chan +852 2894 6828 charles.chan@crowehorwath.hk Hong Kong Tax, International Tax Mr Albert Cheung +852 2894 6875 albert.cheung@crowehorwath.hk Human Resources Advisory Dr Leslie Tong +852 2894 6892 leslie.tong@crowehorwath.hk Internal Control, Corporate Governance & Risk Management Mr Eddy Yan +852 2894 6661 eddy.yan@crowehorwath.hk International Liaison & SME Audit Mr Charbon Lo +852 2894 6658 international.liaison@crowehorwath.hk Japan Desk Ms Hidy Chan +852 2894 6693 hidy.chan@crowehorwath.hk Property Valuation & Consultancy Mr Leo Lo +852 2894 6188 leo.lo@crowehorwath.hk Transaction Advisory Mr C S Lam +852 2894 6603 cs.lam@crowehorwath.hk Trust and Estate Planning Mr C Yuen +852 2894 6875 chung.yuen@crowehorwath.hk US Listing Audit Ms Sharon Sum +852 2894 6603 sharon.sum@crowehorwath.hk 12