Annual Report - QuamIR
Annual Report - QuamIR
Annual Report - QuamIR
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Management Discussion and Analysis (Continued)<br />
<br />
As at 31 December 2011, the Group had restricted deposits of HK$273.5<br />
million (2010: HK$320.6 million) and unrestricted cash and cash equivalents<br />
amounting to HK$3,115.0 million (2010: HK$1,903.3 million).<br />
<br />
273,500,000320,600,000<br />
3,115,000,000<br />
1,903,300,000<br />
The Group did not use financial instruments for financial hedging purposes<br />
during the year under review. Most of the Group’s assets are in China, and use<br />
Renminbi (“RMB”) as its functional currency. Therefore, the Group is exposed<br />
to changes in the value of RMB.<br />
<br />
<br />
<br />
<br />
The Group will continue its efforts to create an optimum financial structure<br />
that best reflects the long-term interests of its shareholders, and will<br />
actively consider a variety of alternative sources of funding to finance future<br />
investments.<br />
Details of Charges in Group Assets<br />
For the year ended 31 December, 2011, the Group and certain of its<br />
subsidiaries had charged certain properties worth HK$4,506.1 million (2010:<br />
HK$4,799.8 million) as security for bank and other loans.<br />
Gearing Ratio<br />
The Group’s gearing ratio (total debt/total equity) as at 31 December 2011<br />
was 26.1%, compared with 27.0% as at 31 December 2010. This ratio<br />
represents total borrowings divided by total equity. The Group’s net debt ratio<br />
for the same period was 2.4%. This ratio represents total borrowing minus<br />
cash divided by total equity.<br />
Contingent Liabilities<br />
The Group had contingent liabilities in respect of a housing facility fund for a<br />
property held in the PRC. Details are set out in Note 41 to the consolidated<br />
financial statements.<br />
Business Risks<br />
As a China property developer, the Group is subject to China government<br />
property policies, development, marketing, and other execution risks.<br />
Environment Policies<br />
The Group aspires to be a leading sustainable Group, and has therefore<br />
invested in the renewable energy sector, and uses sustainable technologies<br />
in some of its property developments, such as solar panels and heat pump<br />
technology. The Group has received LEED certification on some of its<br />
residential units.<br />
<br />
<br />
<br />
<br />
<br />
4,506,100,000<br />
4,799,800,000<br />
<br />
<br />
<br />
26.1%<br />
27.0%<br />
<br />
2.4%<br />
<br />
<br />
<br />
41<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
LEED<br />
<br />
•<br />
9