HKSI Paper 8 SEHK primary and secondary markets question: latest financial year

HKSI Paper 8SEHK primary and secondary markets

A Main Board applicant relying on the profit test made profits attributable to shareholders of HK$30 million in year 1 and HK$18 million in year 2. What is the minimum profit it needs in year 3, its latest financial year?

A HK$27 million
B HK$32 million
C HK$35 million
D HK$45 million

Show the answer and explanation

Answer: C. HK$35 million

Under Main Board Rule 8.05(1)(a), profit attributable to shareholders must be at least HK$35 million in the most recent year and at least HK$45 million in aggregate for the two preceding years. Years 1 and 2 total HK$30 million + HK$18 million = HK$48 million, which meets the HK$45 million limb. The latest year must then reach HK$35 million on its own. HK$32 million wrongly treats the test as a three-year total of HK$80 million (80 - 48). HK$27 million wrongly applies HK$45 million to years 2 and 3 (45 - 18). HK$45 million confuses the two limbs. Source: HKEX Main Board Listing Rules r.8.05(1)(a) (as at October 2026).

Common mistake

Adding the three years to HK$80 million. The test has two separate limbs: HK$35 million in the latest year and HK$45 million across the two years before.

Practise more Paper 8 SEHK primary and secondary markets questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: SEHK primary and secondary markets HKSI Paper 8 practice questions & mock exams

Related HKSI Paper 8 questions

A Main Board applicant will list 400 million shares, its only class, at HK$20 each, an expected market value of HK$8 billion. What is the minimum number of shares that must be held by the public at listing?In Lantern Holdings Ltd's IPO, the company issues 150 million new shares and its founder, Mr Leung, sells 50 million existing shares, all offered to the public under one prospectus. How is this offering best described?Peng Chau Robotics Ltd seeks a GEM listing under the market cap/revenue/R&D test. Expected market capitalisation is HK$300 million. Over two years revenue was HK$45 million then HK$60 million, and R&D spending HK$13 million then HK$19 million, being 18% then 13% of total operating expenditure. It meets the record and continuity conditions. Does it qualify?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original study material mapped to the public HKSI Paper 8 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.