Annual Report 2025

251 2025 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 31 Capital and reserves (continued) (c) Nature and purpose of reserves (continued) (iv) Fair value reserve (recycling) The fair value reserve (recycling) comprises the cumulative net change in the fair value of investments in financial assets measured at FVOCI (recycling) under HKFRS 9 held at the end of the reporting period (see note 1(g)(i)). (v) Fair value reserve (non-recycling) The fair value reserve (non-recycling) comprises the cumulative net change in the fair value of equity investments designated at FVOCI under HKFRS 9 that are held at the end of the reporting period (see note 1(g)(ii)). (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 2025 and 2024 was as follows: 2025 2024 Note $’000 $’000 Current liabilities: Bank loans 25 2,823,669 842,500 Lease liabilities 28 3,722 3,542 Non-current liabilities: Bank loans 25 548,142 3,368,433 Lease liabilities 28 3,327 3,760 Total debt 3,378,860 4,218,235 Less: Bank deposits and cash 24(a) (1,516,315) (1,554,434) Restricted bank deposits 24(a) (264,525) (375,520) Adjusted net debt 1,598,020 2,288,281 Total equity 17,173,208 16,709,332 Adjusted net debt-to-capital ratio 9.3% 13.7% Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.