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Notes To The Consolidated Financial Statements
(Expressed in Renminbi)
Annual Report 2011 /
1
37 Other non-current liabilities
Other non-current liabilities mainly represent the deferred revenue arising from government grants and
warranty provisions.
38 Share capital
2011
2010
RMB’000
RMB’000
Registered, issued and fully paid:
3,778,831,800 (2010: 3,778,831,800) domestic state-owned
ordinary shares of RMB1.00 each
3,778,832
3,778,832
1,992,850,200 (2010: 1,992,850,200) H shares of RMB1.00 each
1,992,850
1,992,850
5,771,682
5,771,682
2011
2010
Thousand
shares
Thousand
shares
At 1 January and at 31 December
5,771,682
5,771,682
All shareholders are entitled to receive dividends as declared from time to time and are entitled to one vote
per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.
(a) Capital management
The Group’s primary objectives when managing capital are to safeguard the Group’s ability to
continue as a going concern, so that it can continue to provide returns for shareholders and benefits
for other stakeholders, by strengthening their leading position as integrated service provider to the
telecommunications industry and achieving economies of scale in the market.
The Group actively and regularly reviews and manages its capital structure to maintain a balance
between higher shareholder returns that might be possible with higher levels of borrowings 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.
The Group monitor its capital using a gearing ratio which is total debts divided by the sum of total
debts and total equity. For this purpose, the Group defines total debt as the sum of short-term interest
bearing borrowings and long-term interest bearing borrowings. The Group aims to maintain the gearing
ratio at a reasonable level. The Group’s ratio as at 31 December 2011 was 5.9% (2010 restated:
10.9%). In order to maintain or adjust the ratio, the Group may adjust the amount of dividends paid to
shareholders, issue new shares, return capital to shareholders, raise new debt financing or sell assets
to reduce debt.