Annual Report 2024

255 2024 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 31 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 2024 and 2023 was as follows: 2024 2023 Note $’000 $’000 Current liabilities: Bank loans 25 842,500 1,262,075 Lease liabilities 28 3,542 3,589 Non-current liabilities: Bank loans 25 3,368,433 3,377,539 Lease liabilities 28 3,760 1,954 Total debt 4,218,235 4,645,157 Less: Bank deposits and cash 24(a) (1,554,434) (1,207,743) Restricted bank deposits 24(a) (375,520) (447,551) Adjusted net debt 2,288,281 2,989,863 Total equity 16,709,332 16,405,587 Adjusted net debt-to-capital ratio 13.7% 18.2% Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. 32 Commitments (i) At 31 December 2024, the Group had the following capital commitments in relation to the purchase of other property, plant and equipment not provided for in the consolidated financial statements: 2024 2023 $’000 $’000 Contracted for 139,539 305,639 (ii) At 31 December 2024, the Group’s share of capital commitments of the joint operation in respect of investment property under development not provided for in the consolidated financial statements is as follows: 2024 2023 $’000 $’000 Contracted for 32,324 37,585