Sustainability and Governance Report slide image

Sustainability and Governance Report

Notes to the FINANCIAL STATEMENTS No 30. Capital management (cont'd) The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group's aim is to keep the gearing ratio below 30%. The Group includes within net debt, bank borrowings, trade and other payables, lease liabilities, dividend and bills payable, less cash and bank balances. Capital includes equity attributable to the equity holders of the Company less the abovementioned legal reserve. Trade and other payables (Note 21) Bills payable (Note 22) Bank borrowings (Note 23) Lease liabilities (Note 19) Less: Cash and bank balances (Note 14) Net debt Equity attributable to equity holders of the Company Less: Legal reserve Total capital Capital and net debt Gearing ratio 31. Segment information Group 2020 2019 $'000 $'000 2,365 4,265 3,370 3,209 2,373 4,022 1,634 (7,094) (5,794) 2,648 5,702 42,999 39,103 (1,651) (1,533) 41,348 37,570 43,996 43,272 6% 13% The Group's geographical segments are based on the location of the Group's assets. Sales to external customers disclosed in geographical segments are based on the geographical location of its customers. The Group mainly imports and distributes apparel, sporting goods, footwear and accessories in each of the following locations and are independent from each other. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which in certain respects, as explained in the table below, is measured differently from operating profit or loss in the consolidated financial statements. 99
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