ChatDOC/OCRFlux-bench-single huggingface dataset:
# 5. OUR ENVIRONMENT (Continued)

# 5.2 Energy and Resources (Continued)

Energy and water consumption of the offices:

Indicators	2021	2020
T1otal energy consumption (MWh)	1,529	2,101
Total2 energy consumption per employee (MWh)	4.79	4.38
T33otal water consumption (m)	18,656	9,427
Total23 water consumption per employee (m)	58.48	19.64

Notes:

1. Data is calculated based on the “Land Transport Enterprises – Guidelines on Greenhouse Gas Emission Accounting and Reporting (Trial)” issued by the National Development and Reform Commission of the PRC and “Appendix 2: Reporting Guidance on Environmental KPIs” published by the Hong Kong Stock Exchange.

2. The intensity is calculated based on the total number of employees of the Office, not the Group.

3. Data is calculated based on the record of actual water consumption of the Group. Water consumption has increased and returned to the original level in response to the alleviation of COVID-19 pandemic in the Year.

# Energy Consumption by Type:
# Consolidated Statement of Changes in Equity

for the year ended 31 December 2020

(Expressed in Renminbi)

Attributable to equity shareholders of the Company	Non-
controlling
interests	Total
equity
Share
capital	Capital
reserve	Statutory
reserve	Translation
reserve	Other
reserves	Retained
profits	Total
RMB’000
(note 23(c))	RMB’000
(note 23(d)(i))	RMB’000
(note 23(d)(ii))	RMB’000
(note 23(d)(iii))	RMB’000
(note 23(d)(iv))	RMB’000	RMB’000	RMB’000	RMB’000
Balance at 1 January 2019	510,981	28,163	126,886	(1,187)	2,308	929,210	1,596,361	(7,007)	1,589,354
Changes in equity for 2019:
Profit for the year	—	—	—	—	—	26,403	26,403	959	27,362
Other comprehensive loss	—	—	—	(10)	—	—	(10)	—	(10)
Total comprehensive income	—	—	—	(10)	—	26,403	26,393	959	27,352
Equity-settled share-based
transactions (note 21)	—	1,772	—	—	—	—	1,772	—	1,772
Purchase of own shares	—	—	—	—	—	(8,913)	(8,913)	—	(8,913)
Dividends paid to equity shareholders
of the Company	—	—	—	—	—	(34,170)	(34,170)	—	(34,170)
Balance at 31 December 2019	510,981	29,935	126,886	(1,197)	2,308	912,530	1,581,443	(6,048)	1,575,395
Balance at 1 January 2020	510,981	29,935	126,886	(1,197)	2,308	912,530	1,581,443	(6,048)	1,575,395
Changes in equity for 2020:
Profit for the year	—	—	—	—	—	87,213	87,213	95	87,308
Other comprehensive loss	—	—	—	(12,352)	—	—	(12,352)	—	(12,352)
Total comprehensive income	—	—	—	(12,352)	—	87,213	74,861	95	74,956
Equity-settled share-based
transactions (note 21)	—	872	—	—	—	—	872	—	872
Purchase of own shares	—	—	—	—	—	(18,125)	(18,125)	—	(18,125)
Dividends declared by subsidiaries to
the non-controlling equity owner	—	—	—	—	—	—	—	(615)	(615)
Dividends paid to equity shareholders
of the Company (note 23(b)(ii))	—	—	—	—	—	(10,702)	(10,702)	—	(10,702)
Balance at 31 December 2020	510,981	30,807	126,886	(13,549)	2,308	970,916	1,628,349	(6,568)	1,621,781

The notes on pages 101 to 167 form part of these financial statements.
# Consolidated Cash Flow Statement

for the year ended 31 December 2020

(Expressed in Renminbi)

Note	2020	2019
RMB’000	RMB’000
Operating activities
Cash generated from operations	17(b)	320,615	46,918
Income tax paid	22(a)	(30,486)	(27,039)
Net cash generated from operating activities	290,129	19,879
Investing activities
Payment for purchase of property, plant and equipment	11	(393)	(1,392)
Payment for purchase of intangible assets	(607)	(251)
Payment for purchase of investment property	—	(19,214)
Payment for purchase of other financial assets	(82,000)	(79,684)
Proceeds from disposal of financial assets	43,301	—
Received from other financial asset	2,000	—
Investments to associates	—	(2,150)
Time deposits with initial term over three months	(22,587)	(21,920)
Proceeds from disposal of property, plant and equipment	153	123
Payment of restricted cash	(882)	—
Interest received	5(a)	14,268	14,881
Dividends received from investments in securities	1,536	—
Net cash used in investing activities	(45,211)	(109,607)
Financing activities
Payment for purchase of own shares	(18,125)	(8,913)
Dividends paid to equity shareholders of the Company	(10,702)	(34,170)
Capital element of lease rentals paid	(1,912)	—
Interest element of lease rentals paid	(59)	—
Other cash flows arising from financing activities	28	—
Net cash used in financing activities	(30,770)	(43,083)
Net increase/(decrease) in cash and cash equivalents	214,148	(132,811)
Cash and cash equivalents at 1 January	583,677	715,109
Effect of foreign exchange rate changes	(9,741)	1,379
Cash and cash equivalents at 31 December	17	788,084	583,677

The notes on pages 101 to 167 form part of these financial statements.
# Environment

# Reducing Waste

Waste is a by-product of our manufacturing processes. Our approach is to reduce, reuse and recycle waste where possible. Metal waste, aluminium, wood and general waste constitute the primary types of waste from our operations. Metal accounts for more than half of our total waste. We sell metal waste as scrap for recycling by other users. In FY2019, metal waste accounted for 65% of our total non-hazardous waste followed by general waste of 23%.

Our policy is to dispose waste through licensed waste management contractors for recycling or safe disposal in accordance with local regulations.

# Complying with Laws

We are committed to complying with the applicable environmental regulations. There were no incidents of non-compliance against environmental laws or regulations in the reported periods.

Non-hazardous Waste (tonnes)
As a responsible corporate citizen, our business philosophy is centered on an unwavering commitment to improve the economic, environmental and social well-being of our stakeholders.

Anti-Corruption	Our policy requires zero-tolerance towards bribery and corruption. There were
no known incidents of corruption in the reported period.
Whistle-Blowing Policy	Our Whistle-Blowing Policy aims at maintaining a hihg standard of corporate
governance; providing a channel of communication for employees to report
fraudulent practices; and guides employees on actions to address their concerns
on suspicions of fraudulent activities. The policy also provides the process for
investigation and management reporting. This policy deals with:
•	Conflicts of interest: An emlpoyee or officer should always act in the best interest
of the Group. A “conflict of interest” occurs when an individual’s personal interests
interferes or appears to interfere with the interests of the Group.
•	Taking advantage of corporate opportunities: Emlpoyees and directors are
prohibited from taking advantage of corporate property, information, or position,
or opportunities arising from these, for personal gains or to compete with the
Group.
•	Confidentiality: Emlpoyees and directors must maintain the confidentiality of
information entrusted to them by the Group or its customers, except when
disclosure is authorised or legally mandated.
•	Fair dealing: Each emloyee and director should endeavour to deal fairly with thpe
G’rous customers, sulppiers, competitors and emlhpoNpyees. one sould take unfair
advantahge of anhyone throug disonesty, misrepresentation of material facts or
any other unfair practice.
’•	Protection and proper use of the Groups assets: All emlpodl
yees an officers shoud’protect the Groups assets and ensure their efficient use for legitimate business
purposes.
•	Comlpiance with laws, rules and regulations (including insider trading laws): We
activelly promote compiance with laws, rules and regulations, including insider
trading laws. Insider trading is both unethical and illegal.
•	Unethical behaviour: We actively promote ethical behaviour and encourage
emlpoyees to report any misconduct in this regard.
Regulatory Compliance	GDS is committed to conducting its business activities in a lawful manner. We
have implemented measures to stay updated about the regulations that apply to
our business to ensure compliance.
There were no known incidents of non-compliance with socio-economic laws or
regulations in the reported period.
# 4. Financial risk management (continued)

# 4.3 Liquidity risk (continued)

# (C) Analysis of undiscounted cash flows by contractual maturities (continued)

# (b) Derivative cash flows

The tables below summarise the cash flows of the Group by remaining contractual maturity as at 31 December for derivative financial liabilities that will be settled on a net basis, together with all derivative financial instruments that will be settled on a gross basis regardless of whether the contract is in an asset or liability position. The amounts disclosed in the tables are the contractual undiscounted cash flows, except for certain derivatives which are disclosed at fair value.

The Group’s derivative financial instruments that will be settled on a net basis mainly include interest rate swaps whereas derivative financial instruments that will be settled on a gross basis mainly include currency forwards and currency swaps.

2018
Up to
1 month	1 to 3
months	3 to 12
months	1 to 5
years	Over
5 years	Total
HK$’m	HK$’m	HK$’m	HK$’m	HK$’m	HK$’m
Derivative financial liabilities
settled on a net basis	(8,983)	(884)	(2,338)	(5,061)	(1,002)	(18,268)
Derivative financial instruments
settled on a gross basis
Total inflow	792,296	383,269	643,870	133,033	4,683	1,957,151
Total outflow	(793,145)	(382,112)	(641,036)	(133,384)	(4,660)	(1,954,337)

2017
Up to
1 month	1 to 3
months	3 to 12
months	1 to 5
years	Over
5 years	Total
HK$’m	HK$’m	HK$’m	HK$’m	HK$’m	HK$’m
Derivative financial liabilities
settled on a net basis	(7,463)	(720)	(1,127)	(3,580)	(856)	(13,746)
Derivative financial instruments
settled on a gross basis
Total inflow	635,704	462,071	492,297	125,606	5,181	1,720,859
Total outflow	(636,212)	(462,229)	(491,628)	(125,756)	(5,192)	(1,721,017)
# 4. Financial risk management (continued)

# 4.3 Liquidity risk (continued)

# (C) Analysis of undiscounted cash flows by contractual maturities (continued)

# (c) Off-balance sheet items

# Loan commitments

The contractual amounts of the Group’s off-balance sheet financial instruments as at 31 December 2018 that the Group commits to extend credit to customers and other facilities amounted to HK\$545,794 million (2017: HK\$569,658 million). Those loan commitments can be drawn within one year.

# Financial guarantee contracts

Financial guarantees and other financial facilities of the Group as at 31 December 2018 amounting to HK\$62,094 million (2017: HK\$66,800 million) are maturing no later than one year.

# 4.4 Insurance risk

The Group is in the business of insuring against the risk of mortality, morbidity, disability, critical illness, accidents and related risks. The Group manages these risks through the application of its underwriting strategy and reinsurance arrangements.

The underwriting strategy is intended to set premium pricing at an appropriate level that corresponds with the underlying exposure of the risks underwritten and the Group’s underwriting procedures include the screening processes, such as the review of health condition and family medical history to ensure alignment with the underwriting strategy.

Within the insurance process, concentrations of risk may arise where a particular event or a series of events could impact heavily on the Group’s liabilities. Such concentrations may arise from a single insurance contract or through a small number of related contracts, and relate to circumstances where significant liabilities could arise.

For the in-force insurance contracts, most of the underlying insurance liabilities are related to endowment, universal life, annuity, whole life and unit-linked insurance products. For most of the insurance policies issued, the Group has a retention limit on any single life insured. The Group cedes the excess of the insured benefit over the limit to reinsurer under an excess of loss reinsurance arrangement. For some of the insurance liabilities, the Group has entered into reinsurance arrangements that reinsure most of the insurance risk.

Uncertainty in the estimation of future benefit payments and premium receipts for long-term insurance contracts arises from the unpredictability of long-term changes in overall levels of mortality, morbidity and persistency. In this regard, the Group has conducted relevant experience studies. The results of such studies are considered in determining the assumptions of insurance liability which include an appropriate level of prudential margins.
. given the international and mature status of the Stock Exchange, our executive Directors believe that the listing of our Shares in Hong Kong has advantages which include a sound regulatory framework, free flow of capital and an advanced clearing and settlement infrastructure and financial services.

Our Directors believe that investors would be interested in investing in our Group despite the fact that our Group is based in Singapore for the following reasons. Our major customers encompass subsidiaries of listed companies. Such customers include (i) Customer B, a subsidiary of a company listed on the New York Stock Exchange, which is a Fortune 500 company and the leading global developer of integrated resorts and casino operator; (ii) CBM Pte Ltd, a subsidiary of City Developments Limited, a company listed on the Singapore Stock Exchange, which is an international real estate operating company with a global presence, and one of Singapore’s largest companies by market capitalisation; and (iii) UEMS Solutions Pte Ltd, a subsidiary of UEM Edgenta Berhad, a company listed on the Main Board of Bursa Malaysia Securities Berhad, which is a leader in total asset solutions including consultancy, procurement and construction planning, operations and maintenance for a range of assets and building types such as residential properties, offices and roads. In addition, in 2016, we secured a three-year framework agreement for the supply of our tissue products to the largest international airport in Singapore. Our Directors believe that given the international background and reputable status of our customers, investors would be attracted by our Group’s customer profile to invest in our Group.
# 2. ADOPTION OF NEW OR REVISED IFRSs (continued)

# (b) New or revised IFRSs that have been issued but are not yet effective (continued)

# IFRS 16 — Leases (continued)

As at 31 December 2018, the Group has non-cancellable operating lease commitments of HK\$18,314,000 as disclosed in Note 32(a). A preliminary assessment indicates that these arrangements will meet the definition of a lease under IFRS 16, and hence the Group will recognise a right-of-use asset and a corresponding liability in respect of all these leases unless they qualify for low value or short-term leases upon the application of IFRS 16. In addition, the application of new requirements may result in changes in measurement, presentation and disclosure as indicated above. However, it is not practicable to provide a reasonable estimate of the financial effect until the Group performs a detailed review.

In respect of the lessor accounting, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently.

# IFRIC 23 — Uncertainty over Income Tax Treatments

The interpretation supports the requirements of IAS 12 “Income Taxes” by providing guidance over how to reflect the effects of uncertainty in accounting for income taxes. Under the interpretation, the entity shall determine whether to consider each uncertain tax treatment separately or together based on which approach better predicts the resolution of the uncertainty. The entity shall also assume the tax authority will examine amounts that it has a right to examine and have full knowledge of all related information when making those examinations. If the entity determines it is probable that the tax authority will accept an uncertain tax treatment, then the entity should measure current and deferred tax in line with its tax filings. If the entity determines it is not probable, then the uncertainty in the determination of tax is reflected using either the “most likely amount” or the “expected value” approach, whichever better predicts the resolution of the uncertainty.

The Group is not yet in a position to state whether these new pronouncements will result in substantial changes to the Group’s accounting policies and financial statements.

# Amendments to IFRS 10 and IAS 28 — Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

The amendments clarify the extent of gains or losses to be recognised when an entity sells or contributes assets to its associate or joint venture. When the transaction involves a business, the gain or loss is recognised in full; conversely when the transaction involves assets that do not constitute a business, the gain or loss is recognised only to the extent of the unrelated investors’ interests in the joint venture or associate.

The Group is not yet in a position to state whether these new pronouncements will result in substantial changes to the Group’s accounting policies and financial statements.
# 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

# (a) Basis of preparation

The consolidated financial statements have been prepared under historical cost convention except for certain financial instruments classified as available-for-sale investments and at fair value through profit or loss, which are measured at fair value. The significant accounting policies that have been used in the preparation of these financial statements are summarised below. These policies have been consistently applied to all the years presented unless otherwise stated. The adoption of new or revised IFRSs and the impacts on the financial statements, are disclosed in Note 2.

It should be noted that accounting estimates and assumptions are used in preparation of the financial statements. Although these estimates are based on management’s best knowledge and judgment of current events and actions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are set out in Note 4.

# (b) Business combination and basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Inter-company transactions and balances between group companies together with unrealised profits are eliminated in full in preparing the consolidated financial statements. Unrealised losses are also eliminated unless the transaction provides evidence of impairment on the asset transferred, in which case the loss is recognised in profit or loss.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of profit or loss from the effective dates of acquisition or up to the effective dates of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.

Acquisition of subsidiaries or businesses is accounted for using acquisition method. The cost of an acquisition is measured at the aggregate of the acquisition-date fair value of assets transferred, liabilities incurred and equity interests issued by the Group, as the acquirer. The identifiable assets acquired and liabilities assumed are principally measured at acquisition-date fair value. The Group’s previously held equity interest in the acquiree is re-measured at acquisition-date fair value and the resulting gains or losses are recognised in profit or loss. The Group may elect, on a transaction-by-transaction basis, to measure non-controlling interests that represent present ownership interests in the subsidiary either at fair value or at the proportionate share of the acquiree’s identifiable net assets. All other non-controlling interests are measured at fair value unless another measurement basis is required by IFRSs. Acquisition-related costs incurred are expensed unless they are incurred in issuing equity instruments in which case the costs are deducted from equity.
# SUSTAINABILITY GOVERNANCE

At MGM China, we integrate sustainability management into all levels of our governance, from Board-level and management-level committees to operational-level teams and business units. Established in 2012, the MGM Sustainability Committee (“Committee”), chaired by the non-executive director of the Board, drives us towards fulfilling our Sustainability Vision and goals. In recognition of the rocketing awareness on sustainability in the market, we advance the structure of our Committee to enhance diversity, uphold accountability and the multi-disciplinary nature of sustainability. Therefore, the Committee underwent a restructuring, increasing the membership from 7 to 11 core departments in 2020.

The 3 operational-level teams, namely the Community Volunteer Team, Climate Change and Carbon Management Team, and Green Team are in place to encourage employees’ participation in community events, explore environmental enhancement opportunities, and engage and inspire fellow team members to help us achieve our environmental objectives.

# Sustainability Governance Structure
# RESPONSE TO GLOBAL CALLS FOR SUSTAINABLE DEVELOPMENT

MGM China supports the SDGs and has identified and aligned the Company’s strategy and initiatives with 9 relevant SDGs addressing global challenges.

# UN SDGs Supported by MGM China
# 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

# 3.15 Financial instruments (Cont’d)

# Financial assets (Cont’d)

# Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Interest income is recognised on an effective interest basis for debt instruments other than those financial assets classified at FVTPL, of which interest income is included in net gains or loses.

# Financial assets at FVTPL

Financial assets are classified as at FVTPL when the financial asset is (i) held for trading or (ii) it is designated as at FTVPL.

A financial asset is classified as held for trading if:

• it has been acquired principally for the purpose of selling it in the near term;or

• on initial recognition it is a part of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or

• it is a derivative that is not designated and effective as a hedging instrument.