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annual report 2011
NOTES TO
FINANCIAL STATEMENTS
31 December 2011
35. Capital management
The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to support its
business, maximise shareholder value and fulfll all borrowing covenants.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust
the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes during the years ended 31 December 2011 and 31 December 2010.
As disclosed in Note 27(c), a subsidiary of the Group is required by the Foreign Enterprise Law of the PRC to contribute to and maintain
a non-distributable statutory reserve fund whose utilisation is subject to approval by the relevant PRC authorities. This externally
imposed capital requirement has been complied with by the above-mentioned subsidiary for the fnancial years ended 31 December
2011 and 2010.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within
net debt, loans and borrowings, and trade and other payables. Capital includes equity attributable to the owners of the Company.
Group
2011 2010
$’000 $’000
Loans and borrowings (Note 24) 5,205 5,290
Trade and other payables (Notes 22) 78,152 68,073
Net debt 83,357 73,363
Equity attributable to the owners of the Company 66,874 57,056
Capital and net debt 150,231 130,419
Gearing ratio 55% 56%
36. Comparative figures
Certain accounts have been reclassifed to better refect the nature of the balances and to conform to current year’s classifcation.
As a result of the reclassifcation, the Group’s non-current assets and other income increased by $1,334,000 and $1,559,000 respectively.
Correspondingly, current assets and revenue decreased by the same amounts.
37. Authorisation of financial statements for issue
The fnancial statements for the fnancial year ended 31 December 2011 were authorised for issue in accordance with a resolution of
the directors on 15 March 2012.