Corporate governance

Hong Kong listing obligations

The directors confirm that the Company has complied with the Corporate Governance Code issued by the Hong Kong Stock Exchange throughout the reporting period, other than in respect of the Terms of Reference of the Remuneration Committee as regards making recommendations to the Board in respect of the remuneration of the non-executive directors. It would be inconsistent with the principles of the UK Corporate Governance Code for the Remuneration Committee to be involved in setting the fees of non-executive directors.

The directors also confirm that the half year results have been reviewed by the Group Audit Committee.

The Company confirms that it has adopted a code of conduct regarding securities transactions by directors on terms no less exacting than required by the Hong Kong Listing Rules. Confirmation has been sought from each director that they have complied with the Prudential Share Dealing Rules throughout the period.

Going concern

After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue their operations for the foreseeable future and, therefore, consider it appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.

The UK’s Financial Reporting Council (FRC) has published guidance concerning directors’ considerations of the Company as a going concern, in particular the guidance pertaining to half year statements. The directors have addressed all relevant procedures and considerations as outlined in the FRC’s guidance document.

The Company’s business activities, together with the factors likely to affect its future development, successful performance and position in the current economic climate, are set out in the Business review.

In this context, the directors have considered liquidity risk, capital and related sensitivities, which are discussed in the Risk and capital management section of the Business review. Specifically, in making their going concern assessment, the directors have considered:

  • The Group capital position;
  • The Group’s capital commitments;
  • The market risk and liquidity profile of the Group’s assets and liabilities;
  • The maturity profile of the Group’s core and operational borrowings;
  • Various liquidity stress scenarios; and
  • The capital and liquidity positions of its subsidiaries.

The Group’s IFRS financial statements include cash flow details in the ‘Condensed consolidated statement of cash flows’ and borrowings information in notes S and T.


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