NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
137
ANNUAL REPORT 2015
40.
FINANCIAL RISK MANAGEMENT (CONT’D)
(g)
Capital Management
Capital includes debt and equity items as disclosed in the following table.
The Group’s objective is to provide a reasonable return to shareholders by investing into businesses that
commensurate with the level of risks. This also takes into account synergies with other operations and activities,
the availability of management and other resources, and the fit of the activities with the Group’s longer strategic
objectives.
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the various core businesses. The Group allocates the amount of capital in
proportion to risk, manages the capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristic of the underlying assets. In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares,
sell assets or increase borrowings. The Group monitors the return of capital, which is defined as total shareholders’
equity (excluding non-controlling interests), gearing ratio, which is defined as borrowings net of cash over total
equity and the level of dividends to shareholders. No changes were made in the objectives, policies or processes
during the financial years ended 31 December 2015 and 31 December 2014.
The Group seeks to maintain a balance between the higher returns that might be possible with higher level of
borrowings and the advantages and security afforded by a sound capital position.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirement.
Group
2015
2014
$’000
$’000
Share capital
568,968
568,968
Retained earnings
782,253
787,375
Other reserves
(54,057)
(1,596)
Reserve of disposal group classified as held for sale
–
250
Equity attributable to owners of the Company
1,297,164
1,354,997
Non-controlling interests
73,049
50,901
Total equity
1,370,213
1,405,898
Net borrowings/(Net cash)
312,342
(18,400)
Gearing ratio
22.8%
–
