Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
3 Financial risk management (Continued)
3.2 Capital risk management
The Group’s objectives when managing capital are to safeguard
the Group’s ability to continue as a going concern in order
to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.
3
3.2
In order to maintain or adjust the capital structure, the Group may
adjust the amount of dividends paid to shareholders, raise new
debt financing, issue new shares, share options and warrants or
conduct share buy-backs.
The Group monitors its capital structure by reviewing its gearing
ratio and cash flows requirements, taking into account its future
financial obligations and commitments for this purpose. The
Group defines gearing ratio as total debt divided by total equity.
Total debt is current and non-current borrowings as shown in the
consolidated financial statements and total equity is as shown in
the consolidated balance sheet.
The gearing ratios at 31 December 2011 and 2010 were as
follows:
Group
2011 2010
HK$ Million HK$ Million
Current borrowings 740.0 739.8
Non-current borrowings 2,990.9 2,942.6
Total borrowings 3,730.9 3,682.4
Total equity 14,280.4 13,644.9
Gearing ratio (total debt/total equity) 26.1% 27.0%
•
113