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HK Electric Investments
FINANCIAL REVIEW
(Continued)
The Trust Group’s principal foreign currency transaction exposures arise from the
import of fuel and capital equipment. Foreign currency transaction exposure is
managed mainly through forward foreign exchange contracts. As at 30 June 2016,
over 90% of the Trust Group’s transaction exposure from the import of fuel and
capital equipment was either denominated in United States dollars or hedged into
Hong Kong or United States dollars. The Trust Group is also exposed to foreign
currency fluctuation arising from foreign currency borrowings. Such exposures are,
where appropriate, mitigated by the use of either forward foreign exchange contracts
or cross currency swaps.
The contractual notional amounts of derivative financial instruments outstanding at
30 June 2016 amounted to HK$72,658 million (31 December 2015: HK$54,267
million).
Charge on Assets
At 30 June 2016, no assets of the Trust Group were pledged to secure its loans and
banking facilities (31 December 2015: Nil).
Contingent Liabilities
As at 30 June 2016, the Trust Group had no guarantee or indemnity to external parties
(31 December 2015: Nil).
Employees
The Trust Group maintains a policy of pay-for-performance and the pay levels
are monitored to ensure competitiveness is maintained. The Trust Group’s total
remuneration costs for the six months ended 30 June 2016, excluding directors’
emoluments, amounted to HK$560 million (2015: HK$540 million). As at 30 June
2016, the Trust Group employed 1,783 (31 December 2015: 1,800) permanent
employees. No share option scheme is in operation.