79 Annual Report 2024 • Disciplined approach to capital management. • Diversify our portfolio across asset classes and geographies, focusing on China in accordance with Board-approved mandates. • Actively monitor macroeconomic trends, policies and regulatory changes. • Adopt natural hedging where possible, by borrowing in RMB which matches the revenue stream generated from our investments. • Regularly review and monitor the foreign currency movement which will have an impact on the translation of the overseas investments which are in foreign currency and put in an appropriate hedging policy with the objective of keeping these investments for the long term horizon. • Adopt prudent Forex policy to ensure at least 50% of the undistributed distributable income is hedged from RMB to SGD to protect downside to the cashflow. • Foster a culture of ethics and integrity in CLCT Group. • Adopt a zero-tolerance stance against fraud, bribery and corruption (FBC) across CLCT Group. • Communicate our commitment to integrity from the top through policies and practices, such as the FBC Risk Management Policy, Whistle-blowing Policy, Ethics and Code of Business Conduct Policies and Anti-Money Laundering and Countering the Financing of Terrorism Policy. • Implement e-learning modules to enhance awareness among employees and provide training on avoiding or preventing non-compliant behaviour. • Actively monitor CLCT Group’s debt maturity profile, operating cash flows and the availability of funding including committed and uncommitted lines to ensure that there are sufficient liquid reserves, in the form of cash and banking facilities, to finance CLCT Group’s working capital obligations, operating needs and investment opportunities. • Diversification of funding sources from both banks and capital markets to minimise over-reliance on a single source of funds for any funding or refinancing requirement. • Actively monitor the geopolitical environment, government policies, regulatory changes, and economic and political developments to anticipate shifts in trade, growth and innovation in our key market. • Establish good working relationships with local authorities to keep abreast of regulatory and policy changes, and lobby or engage with local authorities. • Exposure to Chinese Renminbi (RMB) fluctuation against the Singapore Dollar which is the distribution pay out currency. • Any forms of fraud, bribery and corruption that could be perpetuated by employees, third parties or collusion between employees and third parties. • Poor management of cash flows can result in funding gaps, which may lead to financial losses and defaults, delays in project completion, and negative reputational impact. • Instability or political changes in a country, changes in international policies or relations between countries that could lead to sudden changes in regulations and sentiment in the market where CLCT Group operates. • Exposure to political leadership uncertainty, inconsistent public policies, social unrest, change in real estate related regulations and other events. MATERIAL RISKS KEY MITIGATING ACTIONS Foreign Exchange Fraud, Bribery and Corruption Funding and Liquidity Geopolitical • Economic instability or changes in macro-economic factors such as inflation or unemployment, which result in challenging business conditions. Economic
RkJQdWJsaXNoZXIy NTM2MDQ5