Annual Report 2007 - Hmdatalink.com hm datalink

Notes to the consolidated financial statementsfor the year ended 31 December 200729. CONNECTED AND RELATED PARTY TRANSACTIONS (Continued)(b)Compensation of key management personnelThe remuneration of directors and other members of key management during the year were asfollows:2007 2006HK$’000HK$’000Short-term benefit 7,118 5,090Retirement benefits scheme contribution 65 48Share-based payments 5,460 4,66012,643 9,798The remuneration of directors and key management are determined by the remuneration committeehaving regard to the performance of individuals and market trends.30. CAPITAL RISK MANAGEMENTThe Group manages its capital to ensure that entities in the Group will be able to continue as a goingconcern while maximising the return to shareholders through the optimisation of the debt and equitybalance. The Group’s overall strategy remains unchanged from prior year.The capital structure of the Group consists of debt (which includes borrowings, convertible bonds andamount due to immediate holding company) and equity attributable to equity holders of the Company,comprising issued share capital and reserves.Gearing ratioThe Group’s Board of Directors reviews the capital structure on a regular basis. As part of this review, theBoard of Directors considers the cost of capital and the risks associated with each class of capital. The Groupdoes not have a specific target gearing ratio determined as the proportion of debt to equity but closelymonitors the fluctuations of the gearing ratio.GEELY AUTOMOBILE HOLDINGS LIMITED102ANNUAL REPORT 2 0 0 7