NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024 19 SHARE CAPITAL (CONT’D) Preference share capital (cont’d) The Preference Shares rank: (i) pari passu without any preference or priority among themselves; and (ii) in priority over the ordinary shares (a) in respect of payment of the preference dividend (when, as and if declared) and the Additional Preference Dividend; and (b) in the event of a winding-up of or return of capital by the Company, payment of any preference dividend that has accrued to holders of Preference Shares and is unpaid, the Additional Preference Dividend (whether or not then due) as well as the amount paid up on the Preference Shares (including the premium paid thereon). Capital management policy The Group’s primary objective in capital management is to maintain a strong capital base so as to maintain investor, creditor and market confidence, and to continue to maintain the future development and growth of the business. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. For this purpose, the Group defines “capital” as including all components of equity, including non-controlling interests. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders or issue new shares or other financial instruments. The Group monitors capital using a net debt equity ratio, which is defined as net borrowings divided by total capital employed. Note 2024 2023 $’000 $’000 Gross borrowings 13,997,097 12,313,507 Cash and bank balances (including restricted deposits and cash and cash equivalents included in assets held for sale) 18 (3,085,546) (2,511,233) Net debt 10,911,551 9,802,274 Total capital employed 9,308,998 9,539,344 Net debt equity ratio 1.17 1.03 No changes were made to the above objectives, policies and processes during the years ended 31 December 2024 and 2023. The Group derives income from its investments in the People’s Republic of China. The conversion of the Chinese Renminbi is subject to the rules and regulations of foreign exchange control promulgated by the People’s Republic of China government. Under the Housing Developers (Control and Licensing) Act, in order to qualify for a housing developer’s licence, certain subsidiaries of the Group are required to maintain a minimum paid-up capital. These entities complied with the capital requirement during the current and prior year. FINANCIALS CITY DEVELOPMENTS LIMITED 144
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