Annual Report 2020

2020 Annual Report Transport International Holdings Limited 227 Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 30 Capital and reserves (continued) (d) Capital management The Group’s primary objective when managing capital is to safeguard the Group’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, by securing access to finance at a reasonable cost. The Group actively and regularly reviews and manages its capital structure to maintain a balance between the higher shareholder returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions. The Group monitors its capital structure on the basis of an adjusted net debt-to-capital ratio. For this purpose, the Group defines adjusted net debt as bank deposits and cash and restricted bank deposits less interest-bearing loans and borrowings and lease liabilities in the consolidated statement of financial position. Capital comprises all components of equity. The Group’s adjusted net debt-to-capital ratio at 31 December 2020 and 2019 was as follows: 2020 2019 Note $’ 000 $’ 000 Current liabilities: Bank loans 24 1,398,257 – Lease liabilities 27 3,615 3,907 Non-current liabilities: Bank loans 24 1,684,266 2,706,572 Lease liabilities 27 1,865 3,111 Total debt 3,088,003 2,713,590 Less: Bank deposits and cash 23(a) (1,943,400) (1,308,958) Restricted bank deposits 23(a) (350,365) (146,955) Adjusted net debt 794,238 1,257,677 Capital 13,186,312 10,971,710 Adjusted net debt-to-capital ratio 6.0% 11.5% Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.