73 Annual Report 2024 RISK GOVERNANCE AND INTERNAL CONTROL CAPITAL STRUCTURE The Board’s policy is to have a strong capital base to maintain the confidence of investors, creditors, bankers and shareholders and to sustain future development of the business. The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and to maintain an optimal capital structure so as to maximise shareholder value. The Group leverages on its credit profile and business standing in broadening its financing options to include the capital markets. In order to maintain or achieve an optimal capital structure, the Group may issue new shares and obtain new borrowings. The Group monitors its monthly cash flows and also manages its capital structure based on the Group’s net gearing ratio. The net gearing ratio is calculated as net debt divided by the Group’s total equity. Net debt is calculated as borrowings less cash and cash equivalents. As of 31 December 2024, the Group has a net gearing ratio of 0.28x (2023: net gearing ratio of 0.35x). The Board reviews the capital structure on a periodic basis. As part of the review, the Board considers the cost of capital and other sources of funds, including borrowings from banks and equity fund raising options to ensure flexibility and currencymatched financing of short- and long-term assets and reduce effective interest cost over the longer term. There were no changes in the Group’s approach to capital management during the financial year. PROACTIVE RISK MANAGEMENT We remain vigilant against emerging threats that may affect our different businesses. Through close collaboration with stakeholders, we will continue to review our risk management system to ensure that it remains adequate and effective. OUR RISKS STRATEGIC RISKS Market and competition Management of growth Acquisitions and Divestments Human Resources Climate-related OPERATIONAL RISKS Project Management Health, Safety & Environment Supply Chain Management Business Continuity TECHNOLOGY RISKS Information Technology & Cyber Security COMPLIANCE RISKS Laws, Regulations & Compliance Corporate Governance – Policies and Procedures FINANCIAL RISKS Fraud, Misstatement of financial statements & disclosures Financial Management - Credit - Liquidity - Capital structure
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