2026 Issue 2 Volume 22 DRIVING BUSINESS SUCCESS DIGITAL TRANSFORMATION Services and tools that can help accountants harness technology WOMEN CPAS Female Institute members share their journeys, reflecting different facets of success SECOND OPINIONS What can make a business transformation a success? PLUS: Arthur Lee, an auditor turned energy-sector strategist, talks to A Plus as he prepares to lead the Institute into its next phase of development CHIEF VISIONARY
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PRESIDENT’S MESSAGE APLUS DEAR MEMBERS 2026 Issue 2 1 “ Ongoing dialogue between policymakers and the profession remains important, and the Institute will continue to provide our input grounded in professional expertise.” The first few months of 2026 have been both energizing and demanding for our profession. Against a backdrop of economic adjustment, technological acceleration and increasing global interconnection, one message has come through clearly: the accountancy profession has an important role to play in supporting Hong Kong’s longterm development. Earlier this year, the Institute continued to engage constructively with the broader policy environment facing Hong Kong. Around the time of the 2026-27 Budget, we contributed professional perspectives on fiscal priorities, competitiveness and long-term resilience. Ongoing dialogue between policymakers and the profession remains important, and the Institute will continue to provide our input grounded in professional expertise. In February, the Institute announced Strategic Plan 2026, setting a clear direction for the years ahead. The plan outlines our priorities in strengthening global engagement, advancing digital transformation and supporting members across diverse career paths. It reflects extensive consultation and a forward-looking view of how the profession must continue to evolve. This commitment to quality and thoughtful engagement is also reflected in the international recognition received by A Plus, which was awarded Bronze honours at the 2025/26 MERCURY Awards. The recognition reflects the collective effort behind the publication in supporting informed discussion for members and the wider accounting community. A key highlight during the period was the Institute’s Public Affairs Series event on “The Two Sessions 2026 – Key Takeaways and Implications” in March, which brought together close to 300 participants from across the profession and the wider community. I was honoured, in my capacity as a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), to join fellow CPPCC members and an National People’s Congress representative in sharing perspectives on national development priorities and their implications for Hong Kong. The strong turnout and lively exchange reflected the profession’s keen interest in understanding the broader policy context in which we operate, and the value of informed, open dialogue on issues shaping Hong Kong’s future. Opportunities to reconnect and strengthen ties across sectors also featured during the period. Events such as the Institute’s Spring Cocktail created space for members and stakeholders to come together, reinforcing the sense of community that underpins our profession and our collective ability to navigate change. April marked an important milestone in our international engagement. As part of a series of engagements with the International Federation of Accountants (IFAC), the Institute welcomed members of IFAC’s Professional Accountants in Business Advisory Group during their visit to Hong Kong. The visit culminated in the HKICPA x IFAC Professional Accountants in Business Conference, where the Financial Secretary attended as Guest of Honour. His participation was instrumental in advancing meaningful dialogue on the evolving role of professional accountants in business as drivers of innovation, resilience and sustainable growth. In particular, his three key observations on navigating this era of change were highly insightful and well received. The HKICPA will continue to work closely with our members in these areas as we collectively strive for excellence. The Institute also entered a new chapter in leadership with Arthur Lee’s appointment as Chief Executive and Registrar. With extensive experience spanning finance and sustainability, Arthur brings valuable perspective as we continue to strengthen our organizational capabilities and deliver on our strategic priorities. I encourage members to join me in welcoming Arthur and to work closely with him as we take the Institute and the profession forward together. Stephen Law, President
CONTENTS 2026 Issue 2 NEWS 01 President’s message 04 Institute news 07 Business news FEATURES 08 Guiding the Institute’s next chapter Arthur Lee, the new Chief Executive and Registrar of the Institute, on his vision for Hong Kong’s accounting profession 14 Digital transformation: How firms can get it right A close look at the digital transformation journey for small and medium-sized practices, and the services that can make a difference 22 Success on her terms The career and personal journeys of four women CPAs show different facets of success SHORT PROFILES 32 Q&A with a PAIB Tony Mak, Deputy Chief Executive of Industrial and Commercial Bank of China (Asia) Limited 33 Q&A with a PAIP Benjamin Hucklebridge, Partner, Audit and Accounting Advisory at Deloitte 40 Young member of the month: Special edition 15 years of celebrating young members COLUMNS 29 Thought leadership: Ada Chung The Privacy Commissioner for Personal Data on key aspects to consider when developing internal artificial intelligence policies for accounting firms 30 Second opinions What can make a business transformation a success? A Plus interviews four female members of the Institute who are redefining what it means to be successful 32 Q&A with a PAIB 33 Q&A with a PAIP 22Success on her terms
How can firms actually harness technology? Small- and mediumsized practices share advice for firms starting their digital transformation journeys DRIVING BUSINESS SUCCESS About our name A Plus stands for Accounting Plus. It represents a profession that is rich in career options, stays relevant amid rapid changes, and adds value to business. This magazine strives to present the global mindset and varied expertise of Institute members – Accountants Plus. Editor Gerry Ho Email: gerry.ho@mandl.asia Managing Editor Jemelyn Yadao Registered Office 2/F Wang Kee Building, 252 Hennessy Road, Wanchai, Hong Kong Advertising enquiries Advertising Director Derek Tsang Email: derektsang@mandl.asia ISSN 1815-3380 President Stephen Law Vice Presidents Jasmine Lee Calvin Tse Chief Executive and Registrar Arthur Lee Director of Corporate Communications Rebecca Tam Publication Manager Michael Wong Editorial Coordinator Maggie Tam Office Address 37/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Tel: (852) 2287-7228 Fax: (852) 2865-6603 Member and Student Services Counter 27/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Website: www.hkicpa.org.hk Email: hkicpa@hkicpa.org.hk 42 Institute insights: Institute’s submission to the AFRC Consultation on the Proposed Regulatory Framework for Sustainability Assurance in Hong Kong A close look at the HKICPA’s submission, and the initiatives available to members as the landscape evolves SOURCE 34 ISSB finalizes amendments to IFRS S2: Changes to greenhouse gas emissions disclosures T he Institute’s feedback reflected in final amendments, ensuring local voices are heard 35 Merger accounting under AG 5: Proposed changes and why they matter A summary of the Institute’s Exposure Draft 40Young member of the month: Special edition A Plus is the official magazine of the Hong Kong Institute of Certified Public Accountants. The Institute retains copyright in all material published in the magazine. No part of this magazine may be reproduced without the permission of the Institute. The views expressed in the magazine are not necessarily shared by the Institute or the publisher. The Institute, the publisher and authors accept no responsibilities for loss resulting from any person acting, or refraining from acting, because of views expressed or advertisements appearing in the magazine. © Hong Kong Institute of Certified Public Accountants 2026 Issue 2. The digital version is distributed to over 47,000 members, and around 12,000 students of the Institute and stakeholders every quarterly. 14 Digital transformation: How firms can get it right 37 Navigating the future: A strategic digital transformation roadmap and hub for SMPs and SMEs How the Institute’s initiatives provide firms and enterprises an actionable framework for their transformation journeys 38 Technical news
The Institute hosted a cocktail reception on 15 April for Professional Accountants in Business Advisory Group (PAIBAG) members of the International Federation of Accountants (IFAC) during their visit to Hong Kong. Institute President Stephen Law delivered a welcome address, highlighting the Institute’s commitment to fostering international collaboration, strengthening Hong Kong’s role as a global financial hub, and advancing the profession’s contribution to sustainable economic growth. PAIBAG Chair Josephine Okui Ossiya also shared her remarks at the event. The reception brought together a broad range of stakeholders from across the financial sector, including HKICPA Council members; David Sun, Chairman of the Accounting and Financial Reporting Council (AFRC); Janey Lai, Chief Executive Officer of the AFRC; Agnes Chan, Chairman of the Hong Kong General Chamber of Commerce; Webster Ng, Legislative Councillor representing the accountancy sector; as well as representatives from corporations, professional bodies and trade associations. Over the following two days, PAIBAG held a series of meetings at the Institute, culminating in the HKICPA x IFAC PAIB Conference on 18 April. The conference, jointly organized by the Institute and IFAC, welcomed over 300 professionals for a day of insightful discussion and meaningful exchange, and shared valuable insights on initial public offering markets, green finance, family offices and crossborder investments. Under the theme “Forging what’s next: PAIBs at the helm of change”, the event spotlighted the evolving role of professional accountants in business as drivers of innovation, resilience, and sustainable growth. In addition to addresses from the Institute President Law, IFAC Chief Executive Officer Lee White and PAIBAG Chair Ossiya, attendees heard from Guest of Honour Paul Chan, Financial Secretary of Hong Kong, whose insights set the tone for the day. Keynote Speakers Kelvin Wong, Chairman of the Securities and Futures Commission, and Michael George Fitzgerald, Finance Director of MTR Corporation Limited, together with a distinguished panel of industry leaders, added further depth to the programme. Read the press release to learn more. Institute submits response to AFRC consultation on sustainability assurance The Institute submitted its response to the AFRC’s public consultation on the proposed regulatory framework for sustainability assurance in Hong Kong. In preparing the submission, the Institute organized two all-member seminars and two focused discussion sessions with representatives from relevant committees and industry stakeholders to gather feedback on the proposals. The Institute’s response reflects its general support for the development of a credible and wellstructured sustainability assurance regime in Hong Kong. Strategic Plan 2026 sets out clearer priorities The Institute released Strategic Plan 2026 in February, building on the 2025 framework with clearer priorities and more focused execution across all 12 areas. Guided by the principles of Building Trust, Nurturing Talent, and Driving Development and Transformation, the Plan strengthens support for members and Hong Kong’s NEWS Institute news Business news 4 2026 Issue 2 HKICPA hosts IFAC PAIBAG visit and conference on the future of accountants in business The Institute and the International Federation of Accountants co-organized the HKICPA x IFAC PAIB Conference on 18 April during IFAC PAIBAG’s visit to Hong Kong
APLUS standing as a leading international financial centre. While the 12 focus areas from the 2025 plan remain unchanged, the Strategic Plan 2026 introduces several notable highlights, including the launch of the HKICPA Volunteer Team, stronger Go Global and international engagement, and a greater focus on digital and artificial intelligence (AI) transformation. Visit the dedicated website to read the full plan. Institute signs MoU with HKIAAC The Institute signed a Memorandum of Understanding (MoU) with the Hong Kong International Academy Against Corruption (HKIAAC), established by the Hong Kong ICAC, to further strengthen collaboration in upholding the highest ethical standards within the accounting profession and collectively safeguarding a robust financial ecosystem. The partnership establishes a framework for deepening collaboration on ethicsfocused initiatives, including guest lectures, training course contributions, and the exchange of best practices in professional development. Read the press release for details. Institute welcomes budget 2026-27 measures The government’s 2026-27 Budget included a number of measures in line with the Institute’s budget submission, including promoting digitalization and the application of AI and quantum computing, as well as further tax incentives for commodities trading. Overall, the Institute welcomed the concrete and pragmatic approach to accelerating Hong Kong’s economic transformation and consolidating its standing as a world-class financial market, in alignment with the national 15th Five-Year Plan. Read the press release for details. Rich Kid, Poor Kid marks 20 years of financial education The Institute hosted a cocktail reception on 21 January to celebrate the 20th anniversary of its “Rich Kid, Poor Kid” financial education programme. Honoured by Guest of Honour Joseph Chan, Under Secretary for Financial Services and the Treasury, the event brought together around 100 partners from the education, social welfare and financial sectors, as well as the Institute’s Accountant Ambassadors, to recognize two decades of empowering Hong Kong’s younger generation with strong financial literacy. Read the press release to learn more. Spring Cocktail and Spring Dinner mark the Year of the Horse Nearly 300 guests joined the HKICPA Spring Cocktail 2026 on 27 February to celebrate the Year of the Horse, with festivities kicked off by a traditional Lion Dance. Watch the highlights and photos. A Spring Dinner was also held in Guangzhou on 20 March, hosting nearly 150 guests and members. HKICPA Volunteer Team now recruiting The Institute opened recruitment for the HKICPA Volunteer Team on 2 April, offering members a meaningful platform to give back by sharing their time, professional expertise and compassion. Members are welcome to join a wide range of volunteering activities throughout the year to bring positive impact to the community and demonstrate CPAs’ genuine care for those around them. Find the enrolment form here. A Plus magazine recognized at MERCURY Awards A Plus has been awarded Bronze in both the “Writing: Magazines – Overall” and “Magazines – Overall Presentation: Non Profit” categories at the 2025/26 MERCURY Awards, competing alongside publications from around the world. The recognition reflects the collective effort behind the magazine in serving Institute members and the wider accounting community. Guided by the interests of the profession, A Plus supports informed discussion and connection around the professional and business issues shaping Hong Kong and beyond. Council meeting minutes The abridged minutes from the January and February 2026 Council meetings are now available. A Plus magazine was recognized at the 2025/26 MERCURY Awards, an awards organization for professional communications 2026 Issue 2 5
A new initiative designed to meet the growing demand for interdisciplinary and professional accounting talents Why should you apply for CAB ? • Verifiable credentials for future-ready skills • A strategic checkpoint in your career journey • Flexible learning pathways to fit your own pace • Showcase your achievement and elevate your profile Current HKICPA members are entitled to claim your CAB e-credentials until 30 June 2026 Apply now
NEWS Business HK$140 billion The approximate amount raised by Hong Kong’s IPO market this year as of April, maintaining the city’s lead in global IPO fundraising, wrote Hong Kong’s Financial Secretary, Paul Chan, in his blog. “The developments prove that despite external volatility, with the tireless efforts of the government and the industry, the momentum of Hong Kong’s financial market is unstoppable,” Chan said. Hong Kong International Airport expects revenue to grow by 9 to 10 percent year-on-year in 2026 despite disruptions caused by the Iran conflict. Airport Authority Hong Kong Chief Executive Officer Vivian Cheung told the South China Morning Post that Hong Kong airport was expected to welcome about 70 million passengers this year, up from around 61 million last year, despite flight cancellations. 2026 Issue 2 7 China’s consumption tax revenue in 2025, accounting for 9.6 percent of total national tax revenue, according to data from the Ministry of Finance. In April, the State Taxation Administration exposed eight consumption tax-violation cases involving sectors such as gold jewellery, alcoholic beverages and refined oil, signalling tighter enforcement against tax evasion, and Beijing extending its reach into consumption taxes to stabilize local government finances. The amount the Securities and Futures Commission (SFC) said PwC’s Hong Kong business would set aside to compensate China Evergrande Group’s independent minority shareholders. It marks the first time an auditor of a defunct company is compensating independent minority shareholders, who were harmed by the false and misleading financial statements, said SFC Chief Executive Officer Julia Leung in a statement. In a separate announcement, the Accounting and Financial Reporting Council said it has prohibited PwC from accepting, performing or issuing auditing reports for new public interest entity clients for six months, and has also fined the firm HK$300 million. HK$1 billion APLUS ¥1.69 trillion – Institutional investors’ letter to the Financial Reporting Council in the United Kingdom. A coalition of investors has urged the U.K.’s audit watchdog to scrutinize HSBC’s 2025 financial statements and PwC audit over climate risk disclosures. According to Reuters, the group said HSBC’s conclusion that climate change poses no material short-to-medium-term impact was “excessively optimistic,” given the bank’s exposure to physical risks such as floods and wildfires, and transition risks such as changing regulations. “At a time of rising climate instability and accelerating decarbonization in key industries, a failure to account for probable losses or liabilities could put investor capital at risk.” T+1 Hong Kong Exchanges and Clearing launched a consultation proposing to halve the cash settlement cycle for share trading. It aims to implement a T+1 system, under which trades settle one business day after the transaction, in the fourth quarter of 2027, replacing the existing T+2 cycle. The reform would align Hong Kong’s US$7.5 trillion market with international peers, including the United States and Canada, which shifted to T+1 in May 2024. 1,000+ The number of accounting firms worldwide that have experienced private equity (PE) investment over the past 10 years, with activity accelerating significantly since 2022, according to the International Federation of Accountants’ new global research analyzing the rapid growth of PE investment in firms. “Regardless of ownership structure, the integrity, quality, and independence that underpin our work as professional accountants must remain non-negotiable,” said Lee White, Chief Executive Officer at IFAC.
PROFILE Arthur Lee As he steps into the Chief Executive and Registrar role, Arthur Lee is drawing on decades of experience across audit, energy and governance to guide the Institute into its next phase. He talks to Jemelyn Yadao about his priorities as a leader With three weeks to go before he officially becomes the Chief Executive and Registrar of the Hong Kong Institute of CPAs, Arthur Lee is having conversations with as many people as possible. “It goes back to the old ways of doing audit: Understand the organization first,” says Lee, sitting with A Plus before his effective start date of 22 April. “I need to get everybody’s perspective. It will take some time, but I’ll try to talk to the whole team at the Institute.” All that listening will come in handy as the Institute enters a new era. Coming from a career shaped by management roles in listed companies and a stateowned enterprise – his most recent job was as director of finance and risk management at CLPe – Lee will oversee the Institute’s 170-plus staff, and guide the development and implementation of its strategic plans. But in the current rapidly evolving landscape, driven primarily by the widespread integration of artificial intelligence (AI), Lee recognizes that there will be challenges ahead, Guiding the Institute’s next chapter Photography by Jocelyn Tam 8 2026 Issue 2
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PROFILE Arthur Lee particularly as the Institute looks to continue securing the profession’s growth and relevance. “There’s a lot going on in the world today. Leading the Institute at this time will be a challenge and an exciting opportunity. I am eager to share my experience, my expertise, and work with our members to shift the accounting profession from its traditional focus on the past to a forward-looking, strategic role where historical insights powerfully inform future decisions,” he says. “Of course, AI will play a pivotal role in this evolution. While I do not yet have a detailed roadmap, I am fully committed to working handin-hand with our members. Together we will equip members to thrive, adapt with confidence and advance as stronger, and highly strategic, professionals in this rapidly evolving landscape.” Lee served as the Chairman of the ACCA Hong Kong from 2015 to 2016, and was elected a member of the ACCA Global Council from 2016 to 2022. He is also a Hong Kong Accounting Advisor appointed by the Ministry of Finance of the PRC, Treasurer and Adjunct Professor at the Hong Kong Polytechnic University, and Honorary Fellow of Hong Kong Baptist University. In 2023, Lee was awarded the Medal of Honour by the HKSAR Government in recognition of his community service, particularly in the accounting profession. A trusted profession Having grasped the Institute’s Strategic Plan 2026, organized prior to his appointment around three themes: Building Trust, Nurturing Talent, and Driving Development and Transformation, Lee believes the Institute is moving in the right direction. “But perhaps I can help do some fine-tuning to make it move faster, or even better,” he says. His broader ambition is to make accounting “the profession of choice for our next generation and ensure the general public views us as a trusted professional,” Lee says. “In some countries, people vote accounting as the second most respectful and trustworthy profession in society. I hope to achieve an even better score.” He wants the public to think of accountants the way he thinks of himself. “I tell my supervisor: ‘I’m your trusted business partner.’ I want people to look at accountants as a trusted partner to everyone doing business,” Lee says. Recent scandals have dented public trust in the profession, and he acknowledges the challenge. Lee believes the Institute can build trust meaningfully by enhancing the Institute’s continuing professional development (CPD) courses, arranging better networking events and nurturing a family ethos within the community. “During my interview, one of the Council members asked me what keeps me awake at night,” he says. “What truly concerns me is the possibility that any member might inadvertently misstep and face serious consequences. I see the membership of the Institute as one extended family, and my sincere hope is that each of us succeeds and thrives,” Lee says. “CPD plays a vital role in this, but I envision it going beyond simply conveying rules and procedures.” Through well-designed programmes, Lee hopes to ensure members not only understand the regulations thoroughly but also develop the practical judgement needed to make sound decisions across diverse scenarios – always in full compliance with ethical and professional standards. “More importantly, I hope we can cultivate a deeper appreciation for the ‘why’ behind these rules,” he continues. “When members truly internalize the purpose and values that underpin our responsibilities, compliance becomes not merely an obligation, but a natural expression of professional integrity,” Lee says. Lee also emphasizes the importance of community. “In parallel, I believe we can create an environment that encourages members to connect, support and learn from one another,” he continues. “Such collegiality will in time, help our profession grow wiser, more enlightened and even stronger in serving the public interest.” He sees himself drawing from his own sustainability leadership experience as the Institute continues to focus on integrity in reporting and assurance practices. “We have actively supported the Accounting and Financial Reporting Council’s recent consultation on the proposed regulatory framework for sustainability assurance in Hong Kong. Moving forward, we will continue to prioritize education and are considering the development of targeted design programmes to help members bridge the gap between auditing financial statements and provision of high-quality ESG assurance.” Lee draws on years of experience in building the financial case for renewable energy to investors, and he applies the same framing as he looks to support the sustainable development of both the Institute and the wider profession. “Sustainability should not be viewed merely through the lens of philanthropy or social responsibilities. It represents a powerful strategic opportunity for organizations. By embracing sustainable practices, businesses can strengthen their financial position, lower their cost of capital and secure resilient, long-term growth. My aim is to help organizations adopt a more forward-looking perspective, one that integrates sustainability as a core driver of enduring success and value creation,” he says. On AI, he is resolutely optimistic. “When the car was invented, it rendered certain roles “In some countries, people vote accounting as the second most respectful and trustworthy profession in society. I hope to achieve an even better score.” 10 2026 Issue 2
APLUS obsolete but gave rise to entirely new industries, from expanded personal mobility and logistics to tourism, urban development and countless innovations we now take for granted,” says Lee. “With AI, I believe some old jobs will be phased out, but many more will be created – more than we’ve ever seen before. I’m very optimistic about AI’s potential impact on the profession and its ability to empower professionals to deliver greater strategic value.” The accidental accountant Born in Beijing in 1972 to Chinese parents who had repatriated from Singapore and Indonesia, Lee arrived in Hong Kong at the age of two. He grew up in the city, studying from kindergarten through to university at the Chinese University of Hong Kong, where he studied information engineering largely because many of his peers were doing the same, he says candidly. After graduating with no clear plan, he applied to work for Arthur Andersen’s business consulting division after attending a career talk by the firm. Instead, he found himself being interviewed by the audit team and offered a role. “I didn’t know why I was being interviewed by the audit division, but I accepted the offer, believing that perhaps this profession was right for me,” Lee recalls. He went on to pass all required exams with top scores, which filled him with confidence. Years later, as he prepared to leave the firm, he asked to see his recruitment file. The interviewer’s note stunned him: “Can give this gentleman a chance because we need the headcount.” “I had always believed I was chosen because I had the attributes of a good auditor,” says Lee with a laugh. “It taught me two lessons. If you truly believe you can do something, then you can really do it. Second, you have to be humble. You can achieve a lot of things just by being at the right place, at the right time. Always believe in something and, at the same time, stay humble. It sounds contradictory, but it’s a balance.” Those audit years brought more lessons. Lee describes himself as “ We are doing training courses for more professionals in this field so that Hong Kong can be at the top in terms of sustainability, ESG, and also sustainability assurance.” Arthur Lee brings over 30 years of expertise in finance and sustainability into his new role as the Institute’s Chief Executive and Registrar. His most recent leadership role was as director of finance and risk management at CLPe. 2026 Issue 2 11
PROFILE Arthur Lee an introvert, formed by a self-reliant nature that he says stems from his upbringing. “My parents always instilled that we have to work hard and don’t bother people. Don’t be a troublemaker,” he says. At the now-defunct firm, the limits of selfreliance were exposed. “I committed many careless mistakes,” he admits. “I always had the impression that if I ask people questions, they would look at me as if I’m stupid. But the reality is, it is worse if you don’t ask.” The importance of teamwork became clear to Lee. “I think a lot of people like myself who are more academic have the same issue. We like to accomplish things all by ourselves,” he says. “But that audit period taught me that I could rely on a team, and by working with a team, we can achieve great things. I cannot do everything myself.” Career in energy From Arthur Andersen, Lee followed a former client, United States-listed power generation company Mirant, into the commercial world. The controller there had observed his diligence during the audit relationship and offered him a role. He considers his boss at Mirant an important mentor, who taught him the politics of large multinationals, even something as granular as who to CC on an email, who never to CC. “I think it’s my biggest luck to work for him for those few years,” says Lee. “He was a very kind person, and coached me on the meaning behind daily work, like accounting entries, but also how to work well in management. What to say, what not to say.” Three years and eight months later, the Enron crisis shuttered Mirant’s Asia-Pacific operations and Lee left. He joined the finance team at i-CABLE on 1 April 2003, a day he remembers vividly. It was the day Cantopop and film star Leslie Cheung passed away. “It was a very sad day to kick off the new job,” he says, adding that it was also the peak of SARs in Hong Kong. Despite the bleak setting, the role broadened Lee’s capabilities. “I was able to apply some of my information engineering knowledge, so that came back. I also applied my audit knowledge in a listed company environment,” he says. “But my heart was still with the energy sector,” Lee adds. He moved to Meiya Power, and helped to facilitate Meiya’s sale to China General Nuclear Power Group (CGN), in 2010. Lee stayed with the new entity, CGN New Energy, for 14 years, a period that included leading investor relations for the company’s Hong Kong IPO in 2014. He had first been put on strategy work, during which he developed a five-year plan centred on transitioning the business towards renewables. “At that time, I enrolled in a master’s degree on corporate governance at the Hong Kong Polytechnic University. We planned for the IPO so I wanted to equip myself with knowledge on governance issues for listed companies,” Lee says. When the IPO came, he was put in charge of investor relations, persuading cornerstone investors including a prominent Hong Kongbased investment fund widely regarded as a market leader at the time. “We recognized that securing the support of such a respected fund would signal strong confidence to the market and encourage others to follow,” he recalls. The key selling point was the company’s strategic transition – a coal-and-gas power generator diversifying its energy generation away from fossil fuels to curb environmental pollution. “It wasn’t just me; everybody believed that renewables were the future,” says Lee. CGN New Energy (named CGN Meiya in 2014) secured commitments worth US$200 million from five cornerstone investors, including China Southern Power Grid, Value Partners, Hengjian Investment, Chow Tai Fook and Cinda HK. Lee personally negotiated most of these deals. The experience sharpened his ability to communicate strategically. “It was a pretty exciting process. You have to communicate the big picture of the future so that investors understand the direction.” Lee then became company Lee says his goal is to work alongside members to make accounting “the profession of choice for our next generation and ensure the general public views us as a trusted professional.” 12 2026 Issue 2
APLUS In February, The Institute shared its Strategic Plan 2026, building on the 2025 framework with clearer priorities and sharper execution across all 12 focus areas. The Council concluded that the themes of Building Trust, Nurturing Talent, and Driving Development and Transformation remain appropriate and relevant. As the Chief Executive and Registrar, Arthur Lee will guide the implementation of this strategy. secretary at CGN for 10 years, before moving on to what he originally assumed would be the last job of his career – CLPe, the business unit under CLP specializing in energy and infrastructure solutions. “It’s focused on providing sustainability products, which is aligned with my vision on sustainability,” he says. Lee oversaw the financial analysis for projects ranging from electric vehicle charging infrastructure to liquefied natural gas bunkering for large vessels. The work brought him back to financial modelling after years in strategy and compliance. “After saying goodbye to financial work for more than 10 years, I came back to financials again. My supervisor expected me to give him an opinion on key business decisions before it got to him. This trained me up to take on a more decision-making role.” Lee says the energy years deepened his conviction about climate change. “I still remember back in university in the 1990s, I wore long sleeves in October. I compare that with today – in October, we’re always wearing short sleeves,” he says. “I just think we have to do something. As a father, I want this to be a better place for our next generation to live in.” Making joy a priority Lee arrives at the Institute with a management philosophy he has refined over many years and distilled into an acronym: HAPPY. “H is for high performance; A for achieving big things together; P for professional excellence; P for handling people with care; and Y for yielding big things with joy,” he explains. “For me, creating a Happy team is not about pursuing fun for its own sake or avoiding serious work. It is about fostering an environment where we accomplish meaningful goals as a team and derive the deepest satisfaction from those shared achievements. Making joy a priority means recognizing that the greatest fulfilment comes from delivering excellence together and seeing the positive impact of collective efforts.” The framework was first inspired by the audit partner he worked with during his early days at Arthur Andersen, and was further reinforced by his reading of Joy at Work by Dennis Bakke, the founder of global energy company AES. “As someone with a background in energy, the book resonated deeply with me. It reinforced my belief that a leader’s primary role is to support and empower the team. That is why I encourage colleagues to approach tasks in ways that best suit their strength and judgement. Of course, when guidance is needed, we discuss openly and constructively.” His management style also translates in an open-door approach, with a lot of communication. At CLPe, Lee says, the open-plan office naturally encouraged frequent dialogue and spontaneous exchanges. “I want the team to feel genuinely happy in their work. They can have real fulfilment and purpose in what they do, rather than viewing their role merely as a means to earn a salary. If it’s the case, then I would consider myself to have fallen short as a leader.” Leading by example Running used to be Lee’s main release until a race in Taipei ended with him waking up in an ambulance, being told by hospital staff that “he could die at any moment.” He suffered a heart attack mid-run. “When I woke up, I wanted to be sent back so I could finish the race,” he laughs. Doctors fitted a stent and he has not run competitively since. When he’s not working, Lee gives his mind a break through cinema, and embraces the dad-life. He shares how his son’s early struggles at university while studying law in Beijing prompted him to sit the PRC Law exams himself. He ended up passing. “My boss at Mirant told me: lead by example, and this has also become one of my mottos,” he says. “If I ask my son to work hard, and I’m not a hard worker myself, then I can’t motivate him. So I tried it myself, to face what he’s facing, and then share this experience with him.” His daughter, meanwhile, has taught him patience. “I honestly didn’t always have patience when dealing with people in the old days. If people don’t understand me the first time, I don’t like to repeat myself,” he says. “But given that she has special educational needs, she needs me to be more patient and to understand that there are people out there with different backgrounds or histories. Both of my kids have made me a better person.” Lee is currently doing a Master of Laws at City University of Hong Kong, with subjects including arbitration law, sports and entertainment law, and more. He expects to put it on hold once the new role starts. “To me, learning is finding out the truth about the world,” he says. “Last week, we did a presentation on defamation and breach of confidentiality, and all my team members are probably even younger than my kids. The good thing is that we communicate well with each other.” That same spirit of continuous enhancement will now be directed towards the Institute’s over 47,000 members, each one, in Lee’s vision, a valued part of an extended family he is honoured to serve. “This is a community I am fully committed to supporting, empowering and helping to thrive in the years ahead,” he says. “ A leader’s primary role is to support and empower the team. That is why I encourage colleagues to approach tasks in ways that best suit their strength and judgement.” 2026 Issue 2 13
DIGITAL TRANSFORMATION SMPs and SMEs 14 2026 Issue 2
APLUS Illustrations by Olga Aleksandrova Digital transformation: HOW FIRMS CAN GET IT RIGHT As cloud platforms, robotic process automation, and artificial intelligence reshape the professional services industry, Hong Kong’s small- and medium-sized practices face a decisive question – not whether to digitize, but how to do it wisely. Gigi Wong reports Across Hong Kong’s small- and mediumsized accounting practices (SMPs), something is changing. Tasks that once consumed hours of professional time each week – sorting receipts, keying in transactions, reconciling figures across incompatible spreadsheets – are increasingly being handed to software that can do them faster and, in many cases, more accurately. The shift is being driven by a confluence of forces: acute talent shortages, rising client expectations, and a rapid expansion in accessible technology. Together, they are giving practitioners a compelling reason and a practical pathway to free up their teams for the higher-value advisory work that clients need most. But where should a firm begin, what tools actually deliver, and how do you bring your people along for the ride? The friction problem Eugenio Ferrante, Chief Executive Officer of Osome – a cloud-based platform for automated accounting and company administration, and part of Cyberport’s innovation and technology community – sees the challenge. “Right now, in Hong Kong’s vibrant ecosystem, the biggest point of friction isn’t a lack of ambition, it’s a surplus of admin,” he says. For small and medium enterprises (SMEs) scaling across borders, the pain point shows up as fragmented multi-currency ledgers and tangled tax compliance. For SMPs, it manifests as what Ferrante calls “the margin crush of manual labour,” compounded by a References to specific software and solutions in this article are for illustrative purposes only. They do not constitute endorsement or recommendation by the Institute, nor are they intended to represent all options available in the market. Readers are advised to conduct their own assessment to determine suitability. 2026 Issue 2 15
DIGITAL TRANSFORMATION SMPs and SMEs talent market where qualified staff are increasingly difficult to recruit and retain. Firms find themselves hiring not to expand their advisory capacity but simply to keep pace with the volume of repetitive processing work their client books demand. “SMPs are facing a severe talent shortage,” Ferrante observes. He notes that professionals do not go through the rigour of the CPA exams just to spend their days on data entry – they train to advise, to analyse, and to add value. “Our philosophy is that artificial intelligance (AI) shouldn’t replace the accountant; it should give them a superpower, freeing them to do exactly that.” It is a sentiment echoed on the technology side of the equation by Leon Fan, Chief Financial Officer of Laiye, a specialist in intelligent automation and robotic process automation (RPA) that is also part of Cyberport, whose tools are designed for precisely the kind of high-volume, repetitive workflows that consume so much capacity in accounting firms. Fan, who began developing what he calls “financial robots” during his time at a Big Four firm a decade ago, notes that the underlying technology is well proven. What has changed is its accessibility. RPA, once the preserve of large multinationals with dedicated IT budgets, is now within reach of the practices and businesses that arguably need it most. From empty software to executed work The first stage of the digital transformation journey for many firms involves moving from manual documentation to cloud-enabled automation – replacing paper-based processes and desktop software with platforms that not only store data in the cloud but actively process it. Osome, which serves more than 40,000 customers globally across Hong Kong, Singapore, and the United Kingdom, illustrates what this looks like in practice. When a client uploads a document or connects a bank feed, the platform’s AI ingests unstructured data, cross-references it, and categorizes transactions, typically within 24 hours. If supporting documents are missing, the system automatically prompts the client. Ferrante draws a distinction between this approach and what he describes as the “empty car” problem inherent in legacy accounting software. “Traditional software gives an accounting firm a nice digital dashboard, but the firm still has to supply the human ‘driver’ to manually key in the data,” he explains. “At Osome, when a customer uploads a document, our AI ingests the unstructured data, crossreferences it, and categorizes the transaction instantly. Their staff no longer log in to start typing out individual transactions. They log in to find that the baseline bookkeeping is already done,” Ferrante notes. “We abstract away the manual data entry so the firm can focus entirely on client strategy.” The practical impact, Ferrante says, is that partner firms reclaim an average of around 40 hours of administrative time per month – effectively an entire working week. “They stop looking in the rearview mirror at last month’s receipts and start looking out the windshield at the client’s future.” Going deeper with intelligent automation If cloud-enabled platforms represent the first wave, the next evolution involves deeper process automation through RPA and AI – technology that can execute multi-step financial workflows end to end, with human oversight at critical checkpoints rather than at every stage. Laiye’s financial robots, for instance, can automate invoice processing, accounts receivable and payable reconciliation, tax filing preparation, and fixed asset management. Fan explains that the system operates on strict, predefined workflows with multiple layers of cross-checking built in. “At every step, the system can run a checking procedure to ensure each action is accurate and the result is controlled,” Fan says. When the system encounters an anomaly such as a stamp obscuring a digit on an invoice, an image captured in poor lighting, or a figure it cannot read with sufficient confidence, it flags the item and routes it to a human operator for review. This “human-in-the-loop” model is central to how Fan thinks about automation in the accounting context. He is candid that no system achieves 100 percent accuracy, but argues that the combination of procedural control, cross-checking, and humanmachine cooperation maintains quality at a consistently high level. “Through process control, cross-checking, and the interaction between humans and machines, you ensure quality and accuracy remain very high,” he says. Over time, as a firm gains confidence in a particular workflow, typically after two or three months of supervised operation, the process owner may choose to let the system run autonomously, stepping in only when “ Through process control, crosschecking, and the interaction between humans and machines, you ensure quality and accuracy remain very high.” 16 2026 Issue 2
APLUS outliers arise. Fan sees this model reshaping the role of accounting professionals in a fundamental way. Rather than spending the bulk of their time on manual processing, practitioners will increasingly function as supervisors and managers of their digital assistants. “The workload might shift from 100 percent manual processing to perhaps 80 percent handled by RPA and AI, with the remaining 20 percent devoted to managing those digital tools and focusing on human interaction – the client relationships and business collaboration that machines simply cannot replace,” he says. The view from inside the firms For Hong Kong’s SMPs, the promise of technology is compelling. But the reality of implementation involves navigating challenges that no vendor brochure fully captures. Jonathan Wan, Partner of Financial Services at Forvis Mazars Consulting (HK), describes digital transformation as “an ongoing journey rather than a one-off programme.” The firm has established foundational platforms and shifted its focus toward scaling adoption, embedding digital tools into daily workflows, and extracting more value from data across audit, advisory, and compliance engagements. But Wan is frank about where the difficulty lies. “One of the most significant challenges has been change management,” he says. “Technology adoption is not purely a technical exercise; it requires shifts in mindset, behaviours, and ways of working. Professionals may initially view new tools as adding complexity rather than reducing it.” Forvis Mazars addressed this by investing in training, appointing internal champions, and communicating clear use cases that demonstrate how tools make work more effective, not merely different. “People and process changes must move in tandem with technology for transformation to be sustainable,” Wan says. At BDO, Managing Director Andrew Lam, and an Institute member, points to the firm’s adoption of proprietary audit software used by BDO firms worldwide, developed over the years to incorporate AI and analytics capabilities that enhance both audit quality and efficiency. The platform also enables seamless service for multinational clients across jurisdictions. Beyond audit, BDO Hong Kong has deployed client management systems, and automation in supporting functions such as human resources and administration – some of it self-developed to suit the firm’s specific requirements. But Lam emphasizes that capability must be matched by discipline. “While IT tools could enhance efficiency, system and information security is paramount to ensure integrity and security of both clients’ and the firm’s data,” he says. “Staff 2026 Issue 2 17
DIGITAL TRANSFORMATION SMPs and SMEs have very strict guidelines as to the proper use of IT tools for serving clients and in internal functions.” When Conpak CPA began building its own optical character recognition system in-house, most SMPs were still filing paper returns. Hazel Yim, Director at Conpak and an Institute member, notes that the firm began its digital journey more than a decade ago and achieved a fully paperless environment 10 years ago. Today, its IT team represents nearly 11 percent of total headcount – an exceptional ratio for an SMP. Cross-industry benchmarks put IT staffing at around one technologist for every 18 to 27 employees. Yet even at this advanced stage, Yim identifies a persistent tension. “The biggest challenge is balancing optimization with future readiness, ensuring our optimized processes remain flexible enough to support new technologies,” she says. “A solution that was cutting-edge six months ago can quickly become outdated, superseded by another technology that does the same job better and faster. This constant flux makes it difficult to know when to commit, when to wait, and how to avoid investing in tools with a short shelf life,” Yim explains. Conpak’s response has been to embed continuous improvement into its operating rhythm. The firm’s managing director chairs an IT meeting every Friday morning with the IT team and all functional team heads, reviewing emerging technologies, resolving pain points, and refining systems in real time. The firm has also implemented a “no-blame” pilot period, during which staff can test new tools without fear of making errors. “By embedding continuous improvement into everyday workflows rather than treating it as a one-time transformation, we stay future-ready without chasing every trend,” Yim says. Lowering the entry threshold For firms weighing the cost of digital adoption, government funding schemes have offered a meaningful way to defray the initial outlay. With SMEs accounting for over 98 percent of Hong Kong’s businesses, the government has built up a substantial portfolio of technology support programmes over the past decade. The Digital Transformation Support Pilot Programme (DTSPP), for instance, helps SMEs in selected sectors adopt digital solutions, with plans to expand with an additional “ This constant flux makes it difficult to know when to commit, when to wait, and how to avoid investing in tools with a short shelf life.” 18 2026 Issue 2
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