Annual Report 2021

166 Notes to the Financial Statements Annual Report 2021 Miramar Hotel and Investment Company, Limited 22 Total equity (Continued) (d) Capital management The Group’s primary objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, to meet its financial obligations and continue to provide returns for shareholders and benefits for other stakeholders, by pricing products and services commensurately with the level of risk and 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 the Group’s business portfolio and economic conditions. The Group monitors its capital structure by reviewing its net debt-to-equity ratios and cash flow requirements, taking into account of its future financial obligations and commitments. For this purpose, the Group defines net debt as total debt (which includes interest-bearing loans and borrowings, including lease liabilities), less cash and bank balances. Total equity attributable to shareholders of the Company comprises issued share capital and reserves attributable to equity shareholders of the Company. The adjusted net debt-to-equity ratios at 31 December 2021 and 2020 are as follows: Note 31 December 2021 31 December 2020 HK$’000 HK$’000 Bank loan 19 – 2,993 Lease liabilities 18 86,414 87,164 Less: Cash and bank balances 16(a) (5,247,852) (5,050,300) Net cash (5,161,438) (4,960,143) Total equity attributable to shareholders of the Company 19,881,690 19,850,643 Net debt-to-shareholders’ equity ratio N/A N/A Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirement.