Financial Review
Financial Resources, Treasury Activities And Gearing Ratio
The Group's capital expenditure and investments were funded from cash on hand, internal cash generation, loans, notes, bonds, share placement and other project loans.
As at 30th June, 2026, cash and bank deposits on hand amounted to HK$55,279 million and the total borrowings of the Group amounted to HK$21,384 million, which included Hong Kong dollar notes of HK$260 million and foreign currency borrowings of HK$21,124 million. Of the total borrowings, 11 per cent were repayable in 2026, 87 per cent were repayable between 2027 and 2030 and 2 per cent were repayable beyond 2030. The Group's financing activities continue to be well received and fully supported by its bankers.
The Group adopts conservative treasury policies in cash and financial management. To achieve better risk control and minimise the cost of funds, the Group's treasury activities are centralised. Cash is generally placed in short-term deposits mostly denominated in U.S. dollars, Hong Kong dollars, Australian dollars, New Zealand dollars, British pound, Canadian dollars, Euros or Renminbi. The Group's liquidity and financing requirements are reviewed regularly. The Group will continue to maintain a strong capital structure when considering financing for new investments or maturity of bank loans.
The Group has changed to a net cash position as at 30th June, 2026, from a net debt position with a net debt to net total capital ratio of 8.9 per cent at the year end of 2025, primarily due to the proceeds received from the disposal of a joint venture.
The net debt to net total capital ratio would be 24.0 per cent by sharing of net debt in infrastructure investment portfolio on a look-through basis, which was based on HK$49,728 million of net debt and HK$207,597 million of net total capital. This ratio was 48.5 per cent at the year end of 2025.
To minimise currency risk exposure in respect of its investments in other countries, the Group generally hedges those investments with (i) currency swaps and (ii) the appropriate level of borrowings denominated in the local currencies. The Group also entered into certain interest rate swaps to mitigate interest rate risks. As at 30th June, 2026, the notional amounts of these derivative instruments amounted to HK$42,874 million.
Charge On Group Assets
As at 30th June, 2026, certain assets were pledged to secure bank borrowings totalling HK$1,514 million granted to the Group.
Contingent Liabilities
As at 30th June, 2026, the Group was subject to the following contingent liabilities:
| HK$ million | |
|---|---|
| Performance bond indemnities | 147 |
| Sub-contractor warranties | 7 |
| Total | 154 |
Employees
The Group, including its subsidiaries but excluding affiliated companies, employs a total of 2,031 employees. Employees' cost (excluding directors' emoluments) amounted to HK$517 million. The Group ensures that the pay levels of its employees are competitive and that its employees are rewarded on a performance related basis within the general framework of the Group's salary and bonus system.
Preferential subscription of 2,978,000 new shares of the Company was given to those employees who had subscribed for shares of HK$1.00 each in the Company at HK$12.65 per share on the flotation of the Company in 1996. The Group does not have any share option scheme for employees.
