Guide on Preparation of Annual Report - e - December 2024 (Last updated in December 2025)

Oct 28, 2026

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Guide on Preparation of Annual Report outlines how listed issuers should prepare annual reports by summarising relevant disclosure requirements under the Listing Rules and related Exchange guidance. It explains the Exchange’s monitoring programme, including compliance assessment, follow-up of potential material non-compliances, and thematic reviews targeting higher regulatory risks. The guide covers mandatory disclosures such as financial statements and audit opinions, management discussion, impairments, investments, lending transactions, proceeds use, performance guarantees, and several specific industry-related areas, plus recommended thematic and financial disclosures.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages26

Reading Time1 h 6 min

AccessFree to download

Introduction

Mandatory disclosure requirements under the Rules

Financial statements with auditors’ modified opinions

Management discussion and analysis

Material asset impairments

Securities investments

Material lending transactions

Use of proceeds from equity fundraisings

Performance guarantees

Newly listed issuers

Biotech companies under Chapter 18A of the MB Rules

Recommended disclosure in specific areas from thematic review

Guide on Preparation of Annual Report December 2024 (Last updated in December 2025) Table of Contents Introduction 1 1 Mandatory disclosure requirements under the Rules 2.1 Financial statements with auditors’ modified opinions 7 2.2 Management discussion and analysis 9 2.3 Material asset impairments 13 2.4 Securities investments 14 2.5 Material lending transactions 15 2.6 Use of proceeds from equity fundraisings 16 2.7 Performance guarantees 16 2.8 Newly listed issuers 17 2.9 Biotech companies under Chapter 18A of the MB Rules 18 2 2 3 3.1 Accounting policy information, judgements and estimates 3.4 Material intangible assets – impairment testing 3.5 Valuation of Level 3 financial assets 3.6 Credit risk disclosure on trade receivables 3.7 Presentation of non-GAAP measures 3.8 Disclosure of possible impact of applying a new or amended standard in issue but not yet effective 19 20 20 21 21 22 22 23 Recommended disclosure in specific areas from thematic review Financial disclosure under prevailing requirements 3.2 Revenue 3.3 Business combinations Introduction Annual report is an important corporate communication tool for a listed issuer to present material and relevant information on its financial results and operational performance for investors’ assessment. The Listing Rules set out the minimum information an issuer must include in its annual report. As part of our monitoring activities, we undertake an on-going programme to review issuers’ annual reports and publish, on an annual basis, findings of our reviews and recommendations to enhance issuers’disclosure and approach to internal controls. Some of these recommendations have been subsequently codified into the Listing Rules. Under the programme: ▪ We assess issuers’ compliance with the disclosure requirements under the Listing Rules and, based on their disclosure, identify and follow up on potential material non-compliances with the Listing Rules and other misconduct. ▪ We also adopt a thematic approach, selecting specific areas for review based on results of previous years’reviews and matters considered to be of higher regulatory risks. We consider whether material information was disclosed to allow shareholders to properly assess the matters reported on and whether proper internal controls were maintained. ▪ To enhance quality of financial disclosure, we also assess issuers’ compliance with prevailing requirements (including accounting standards) in their financial statements. This Guide on Preparation of Annual Report (Guide) summarises the relevant Listing Rule requirements and our recommendations to facilitate issuers in preparing annual reports. It will be updated as and when necessary. This Guide has three sections: ▪ Section 1 provides all the disclosure requirements for annual report under the Listing Rules and related guidance materials published by the Exchange. ▪ Section 2 contains prevailing recommended disclosure in specific areas from our thematic review. ▪ Section 3 summarises our guidance for financial disclosure under prevailing requirements (including accounting standards) . In addition to the disclosure requirements presented in this Guide, issuers should ensure that their annual reports fully comply with all other relevant laws, rules and regulations and industry guidelines, as applicable. Disclaimer: Hong Kong Exchanges and Clearing Limited (“HKEX”) and/or its subsidiaries reserve the copyright over this guidance material. Whilst they endeavour to ensure the accuracy and reliability of the information provided in this Guide , HKEX and/or its subsidiaries do not guarantee its accuracy and reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracy oromission or from any decision, action or non-action based on or in reliance upon the information contained in this Guide. T

FAQs

What is the purpose of this guide for preparing annual reports?

It summarises relevant Listing Rule requirements and provides recommendations to facilitate issuers in preparing annual reports for investor assessment and compliance.

How does the Exchange review annual reports under its monitoring programme?

The Exchange assesses issuers’ compliance with disclosure requirements, identifies and follows up potential material non-compliances and misconduct, and conducts thematic reviews in areas with higher regulatory risks.

Which mandatory disclosure topics are highlighted in the guide?

The guide highlights required disclosures including audited financial statements with auditors’ modified opinions, management discussion and analysis, material impairments, securities investments, material lending transactions, use of proceeds from equity fundraisings, performance guarantees, newly listed issuers, and biotech companies under Chapter 18A of the MB Rules.

Oct 28, 2026

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