ANNUAL REPORT 2025 181 NOTES TO THE FINANCIAL STATEMENTS 30 Related parties transactions (Continued) (ii) Joint Operating Alliance of the Kwai Tsing container terminals Pursuant to the Hong Kong Seaport Joint Operating Alliance Agreement entered into by Hongkong International Terminals Limited, COSCO-HIT Terminals (Hong Kong) Limited, Asia Container Terminals Limited and Modern Terminals Limited, with eff ect from 1 April 2019, the parties collaborate with each other for the effi cient management and operation of the 23 berths across Terminals 1, 2, 4, 5, 6, 7, 8 and 9 (together the “Combined Terminal Facilities”) in Kwai Tsing. The revenue and costs from the management and operation of the facilities of the Combined Terminal Facilities are shared among the parties at a preagreed ratio. (iii) Key management compensation Key management of the Group includes managing directors and key management of the deep-water container ports of the Group. The compensation paid or payable to key management for employee services is shown below: 2025 2024 HK$’000 HK$’000 Salaries and employee benefi ts 24,884 23,852 31 Financial risk and capital management (a) Cash management and funding The major fi nancial instruments of the Group include liquid funds, investments, trade and other receivables, trade and other payables and borrowings. Details of these fi nancial instruments are disclosed in the respective notes to the fi nancial statements. The risk management programme of the Group is designed to minimise the fi nancial risks of the Group. These risks include credit risk, interest rate risk, foreign currency risk and liquidity risk. The Group generally obtains long-term fi nancing to meet funding requirements. Management of the Group regularly and closely monitors its overall net debt position and reviews its funding costs and maturity profi le to facilitate refi nancing. (b) Capital management The Group’s strategy involves adopting and maintaining an appropriate mix of debt and equity to ensure optimal returns to unitholders, while maintaining suffi cient fl exibility to implement growth strategies. The Group may consider diversifying its sources of debt fi nancing by accessing the debt capital markets through the issuance of bonds to optimise the debt maturity profi le and to make adjustments to the capital structure in light of changes in economic conditions. The Group has complied with all externally imposed capital requirements which include a leverage ratio. At 31 December 2025, total equity amounted to HK$41,363,042,000 (2024: HK$42,000,835,000), and consolidated net debt, which represents cash less bank and other debts, of the Group was HK$15,553,809,000 (2024: HK$17,060,267,000).
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