88 MANAGEMENT DISCUSSION & ANALYSIS FINANCING 2024 2023 Gearing ratio (1) 15.7% 12.7% Interest cover – times (1) Per financial statements 1.7 10.0 Underlying 8.9 26.8 Cash interest cover – times (1) Per financial statements 1.0 4.0 Underlying 5.0 10.0 (1) Refer to Glossary on page 215 for definitions. Capital Management Audited Financial Information The Group’s primary objectives when managing capital are to safeguard the Group’s ability to operate as a going concern, so that it can continue to provide returns for shareholders, and to secure access to finance at a reasonable cost. The Group considers a number of factors in monitoring its capital structure, which principally include the gearing ratio, cash interest cover and the return cycle of its investments. For the purpose of the gearing ratio, the Group defines net debt as total borrowings and lease liabilities less short-term deposits and bank balances. Capital comprises total equity, as shown in the consolidated statement of financial position. In order to maintain or adjust the gearing ratio, the Group may adjust the amount of dividends paid to shareholders, repurchase shares, raise new debt financing or sell assets to reduce debt. The gearing ratios at 31st December 2024 and 31st December 2023 were as follows: 2024 HK$M 2023 HK$M Total borrowings 48,347 41,169 Lease liabilities 520 607 Less: Short-term deposits and bank balances 5,121 5,097 Net debt 43,746 36,679 Total equity 278,427 288,149 Gearing ratio 15.7% 12.7% The Group has given certain covenants under facilities from third-parties, including maintenance of a minimum amount of tangible net worth. The Group has significant headroom on all covenants, and does not expect any breach in the foreseeable future.