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Glossary of Terms

Term
Definition
Business receipts and other income
(i) For the Industry Section of Transportation, Storage and Courier Services :
Business receipts and other income
= passenger revenue + freight revenue (including revenue from rendering cargo forwarding, warehousing and courier services) + rental for charter hire of transport equipment + other business receipts + rental income from letting/subletting land and premises + income from other sources.

Business receipts and other income do not include insurance claims, gain/loss on disposal of fixed assets, gain/loss on trading securities as well as investments on futures and fuel hedging.

(ii) For information and communications industry :
Business receipts and other income
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest receipts + rental income from letting/subletting land and premises + dividends + gain/loss from trading of financial assets + receipts from royalties for licensing others to make use of your patents, trademarks, copyrights, and franchises + income from other sources

(iii) For banking industry :
Business receipts and other income (for domestic banking units)
= commissions and fees received in respect of credit, bills transactions and loans (excluding syndicated loans) + charges received in respect of current account operations, executor and trustee services, guarantees, portfolio management, custody and remittance services + charges received in respect of investment banking services + commissions and fees received in respect of syndication of loans + commissions and fees received in respect of financial assets dealing and broking + administrative fees received from parent and affiliated companies + receipts from other banking and financial services rendered + rental income from letting/subletting land and premises + net interest receipts (viz. interest received less interest paid) + profit or loss from foreign exchange dealing + profit or loss from trading in securities + dividends received + income from other sources

(iv) For financing (except banking) industry :
Business receipts and other income
= receipts from services rendered + receipts from rental of machinery and equipment + interest receipts + rental income from letting/subletting land and premises + dividends + gain/loss from trading of financial assets + income from other sources

(v) For insurance industry - insurance underwriting :
Business receipts and other income
= total premiums received + total reinsurance commissions received in respect of direct insurance and inward reinsurance + net income from investment + receipts from services rendered + income from other sources

(vi) For insurance industry - activities auxiliary to insurance and pension funding :
Business receipts and other income
= receipts from services rendered + rental income from letting/subletting land and premises + income from other sources

(vii) For professional, scientific and technical activities; and administrative and support service activities (except travel agency, reservation service and related activities) :
Business receipts and other income
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest receipts + rental income from letting/subletting land and premises + dividends + gain/loss from trading of financial assets + receipts from royalties for licensing others to make use of your patents, trademarks, copyrights, and franchises + government subvention + income from other sources

(viii) For travel agency, reservation service and related activities :
Business receipts and other income
= receipts from services rendered + receipts from rental of machinery and equipment + value of sales of goods + interest receipts + rental income from letting/subletting land and premises + passenger revenue + freight revenue + revenue from charter hire out of transport equipment + Revenue from services related to outbound travel, inbound travel, domestic travel and other travel services + income from other sources
Changes in stocks
For (i) the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services, and (ii) the Industry Section of information and communications, professional and business services :
Changes in stocks
= book value of stocks at end of reporting period – book value of stocks at beginning of reporting period
Compensation of employees
Compensation of employees
= wages and salaries (including share-based payments granted to employees) + payments in kind and employer's social security expenditure (including contributions to Mandatory Provident Fund schemes, messing, medical expenses and premiums for employees' compensation insurance)
Establishment
An establishment is defined as an economic unit (i.e. a unit engaged in the production of goods or services) which engages, under a single ownership or control, in one or predominantly one kind of economic activity at a single physical location. Where separate figures relating to different activities or different locations under the same management are not available, a combined return is accepted and in this case, the reporting unit is treated as an establishment.
Gross surplus
Gross surplus
= business receipts and other income – compensation of employees – operating expenses
Local office
A local office is an office that only takes charge of the business in Hong Kong (but nowhere else) on behalf of its parent company located outside Hong Kong.
Number of persons engaged
Number of persons engaged
= number of working proprietors, active partners and unpaid family workers + number of employees
Operating expenses
Operating expenses
= Rent, rates and government rent for land and buildings + interest payments + charges paid to banks + service charge paid to electronic money card and credit card issuers + agency fees, commissions and brokerage fees + patents, trademarks, copyrights and franchises expenses + expenses on repair and maintenance + expenses on materials and supplies used in business + expenses on fuels + expenses on water and electricity + freight charges and cost of transport contract work (including travelling expenses) + charter hire of transport equipment + postal and courier service expenses + service fees for loan of machinery and equipment + payments to outworkers + storage expenses + newspaper / magazines and communications expenses + insurance premiums + business management fee / administration charges paid to related companies + expenses in maintaining representative offices outside Hong Kong + advertisement or promotion expenses + accounting, audit fee and legal fees + other professional services fees + information technology and related services expenses + entertainment expenses + tunnel, bridge and link toll payables, vehicles parking fees and gate charges + port charges + aircraft landing and parking expenses + staff training expenses + other operating expenses (including cleaning expenses, laundry service expenses, recruitment, security service expenses and licence fees, etc)

Operating expenses do not include provision, gain/loss on disposal of fixed assets, bad debts, penalty, write-off, donations to charities, insurance excesses as well as depreciation, amortisation and taxation payments.
Other transportation support activities
Other transportation support activities include air, sea and land cargo forwarding agents, establishments engaged in packing and crating of goods for transportation, establishments providing cargo surveying services connected with transportation as well as shipbrokers.

Ship repairing establishments (which are classified under the manufacturing sector), ship chandlers (which are classified under the import/export, wholesale and retail trades) and ship surveying establishments (which are classified under the professional, scientific and technical activities sector) are not included in transportation, storage and courier services sector.
Producer price indices for service industries
Producer Price Indices for Service Industries measure the average change in prices received by producers of goods and services. Producer prices are transacted prices received by local producers for their output, net of any discounts, premiums, rebates or allowances given to buyers but including surcharges.
Regional headquarters
A regional headquarters is an office that has managerial control over offices in the region (i.e. Hong Kong plus one or more other places) on behalf of its parent company located outside Hong Kong.
Regional office
A regional office is an office that coordinates offices and/or operations in the region (i.e. Hong Kong plus one or more other places) on behalf of its parent company located outside Hong Kong.
Service activities incidental to air transportation
Service activities incidental to air transportation include operation of airway terminal facilities, airport and air-traffic-control activities, and ground service activities on airfields etc.
Service activities incidental to land transportation and other land transport services
Service activities incidental to land transportation and other land transport services include car park operation, vehicular tunnel, bridge and highway operators as well as vehicles towing.
Service activities incidental to water transportation
Service activities incidental to water transportation include container terminal and marine cargo terminal operators, mid-stream operation, port facilities operators, container back-up activities (including container freight stations, container yards, container leasing, vanning and devanning) as well as pilotage services.
Service domain
A service domain differs from a service industry in that it comprises those economic activities straddling across different industries but are somehow related to a common theme.  It may include all economic activities carried out by all establishments in a service industry that is closely related to the domain. For a service industry that is less closely related, however, only a portion of the establishments in the industry or even only part of the economic activities of the establishments is related to the domain. Taking tourism services domain as an example, it includes all services of all hotels and travel agents; and some (those involving visitors as customers) but not all of the services of restaurants, retailers and transport operators.
Value added
For the Industry Section of Transportation, Storage and Courier Services :
Value added
= business receipts and other income – income from other sources – operating expenses + interest payments + payments to outworkers.

For information and communications Industry :
Value added
= business receipts and other income (excluding interest receipts, dividends, gain/loss from trading of financial assets and income from other sources) – total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments)

For financing (except banking) industry :
(i) Value added (except investment and holding companies, financial leasing, and credit granting (except financial leasing))
= business receipts and other income (excluding interest receipts, dividends, gain/loss from trading of financial assets and income from other sources) – operating expenses (excluding interest payments)

(ii) Value added (financial leasing and credit granting (except financial leasing))
= business receipts and other income (excluding dividends, gain/loss from trading of financial assets and income from other sources) – operating expenses

For professional, scientific and technical activities; and administrative and support service activities (except travel agency, reservation service and related activities) :
Value added
= business receipts and other income (excluding interest receipts, dividends, gain/loss from trading of financial assets, government subvention and income from other sources) – total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments)

For travel agency, reservation service and related activities :
Value added
= business receipts and other income (excluding interest receipts and income from other sources) – total value of purchases of goods for sale (adjusted for changes in stocks of goods for sale) – operating expenses (excluding interest payments)

For the Industry Sections of import/export, wholesale and retail trades, and accommodation and food services :
Value added
= sales and other receipts – income from other sources – total value of purchases of goods for sale – operating expenses + interest payments + changes in stocks