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HALF-YEAR REPORT 2016
Notes to the Consolidated Financial Statements
For the six months ended 30 June 2016
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30 Share capital and perpetual capital securities
(a) Share capital
On 25 August 2014, the Company issued 21,253,879,470 ordinary shares. Immediately prior to this
issuance, the number of ordinary shares in issue of the Company was 3,649,444,160.
On 12 August 2015, Xin Ma Apparel International Limited (a company incorporated in Hong Kong
with limited liability and a wholly-owned subsidiary of Youngor Group Co., Ltd.) subscribed for
859,218,000 new shares of the Company at a price of HK$13.95 per share for an aggregate amount of
HK$11,986,091,100.
On 3 August 2015, the Company allotted and issued to Chia Tai Bright Investment Company Limited
(“CT Bright”) 3,327,721,000 fully paid convertible preferred shares of the Company (“Preferred Shares”)
for a total consideration of HK$45,922,549,800. On 14 August 2015, CT Bright converted all of the
Preferred Shares at the conversion price of HK$13.80 per ordinary share and the Company allotted
and issued 3,327,721,000 ordinary shares to CT Bright.
As at 30 June 2016, the number of ordinary shares in issue of the Company was 29,090,262,630 (31
December 2015: 29,090,262,630).
(b) Perpetual capital securities
In April 2011 and May 2013, the Company issued perpetual subordinated capital securities (the
“perpetual capital securities”) with a nominal amount of US$750 million (approximately HK$5,850
million) and US$1,000 million (approximately HK$7,800 million), respectively. These securities are
perpetual and the distribution payments can be deferred at the discretion of the Company. Therefore,
the perpetual capital securities are classified as equity instruments and recorded in equity in the
consolidated balance sheet. On 15 April 2016, the perpetual capital securities of US$750 million were
redeemed by the Company. The amounts as at 30 June 2016 and 31 December 2015 included the
accrued distribution payments.
(c) Capital management
The Group’s primary objectives when managing capital are to safeguard the Group’s stability and
growth, so that it can continue to provide returns for shareholders.
The Group actively and regularly reviews and manages its capital structure, with reference to such
financial ratios like debt (total of debt instruments issued and bank and other loans) to total equity
ratio, to maintain a balance between the higher shareholders’ returns that might be possible with
of borrowings obtained and the advantages and security afforded by a sound capital position, and
makes adjustments to the capital structure in light of changes in economic conditions.
Certain subsidiaries under the financial services segment are subject to capital adequacy requirements
imposed by the external regulators. There was no non-compliance of capital requirements as at 30
June 2016 (31 December 2015: Nil).