Prudent Capital Management and Sustainable Dividend Policy

Building a strong capital base is the key objective of our capital management. This will ensure CDL maintains investor, creditor and market confidence, as well as sustains our business expansion and growth plans.

We manage and adjust our capital structure according to changes in economic conditions. For this purpose, our definition of “capital” encompasses all components of equity, including non-controlling interests. CDL may hence adjust the dividend payment to shareholders or issue new shares or other financial instruments.

The Company’s dividend policy aims to provide a return to shareholders at least once a year, after taking into account the Group’s financial performance, short- and long-term capital requirements, future investment plans, general global and business economic conditions and any regulatory factors. The CDL Board endeavours to maintain a balance between meeting shareholders’ expectations and prudent capital management with a sustainable dividend policy; and will review the policy from time to time and reserves the right to modify, amend and update the policy.

CDL monitors capital using a net debt equity ratio which is defined as net borrowings divided by total capital employed. In 2016, we maintained a robust balance sheet with a cash position of approximately $3.9 billion and a healthy net gearing ratio of 16% (FY 2015: 26%).

Our strong cash position will enable the Group to seize acquisition opportunities and other growth platforms swiftly.


As at

As as

As at 31/12/2014

As at 31/12/2015

As at 31/12/2016

Cash and cash equivalents

$2,157 m

$2,720 m

$3,898 m

$3,565 m

$3,673 m

Net borrowings

$2,357 m

$2,589 m

$2,820 m

$2,938 m

$1,865 m

Net gearing ratio(2)






Net gearing ratio
– if fair value gains on investment properties are taken into consideration






Interest cover ratio

17.4 times

13.7 times

12.1 times

13.0 times

12.5 times


(1) The 2013 comparative figures were restated to take into account the retrospective adjustments arising from the adoption of FRS 110 – Consolidated Financial Statements.
(2) Excludes fair value gains on investment properties as the Group’s accounting policy is to state its investment properties at cost less accumulated depreciation and impairment losses.

CDL’s financial information is described in more detail in our Annual Report 2016. Current and previous reports are available at