Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 綜合財務報表附註 FOR THE YEAR ENDED 31ST DECEMBER, 2019 截至二零一九年十二月三十一日止年度 ANNUAL REPORT 2019 年度報告 145 32. FINANCIAL INSTRUMENTS (Continued) (b) Financial risk management objectives and policies The Group’s major financial instruments include trade and other receivables, deposits, bank balances and cash, trade, bills and other payables, lease liabilities and unsecured bank borrowings. Details of the financial instruments are disclosed in respective notes. The risks associated with these financial instruments include market risk (foreign currency risk and interest rate risk), credit risk and liquidity risk. The policies on how to mitigate these risks are set out below. The directors of the Company manage and monitor these exposures to ensure appropriate measures are implemented on a timely and effective manner. Market risk Foreign currency risk Non-derivative foreign currency monetary assets and monetary liabilities A significant portion of the Group’s sales is denominated in RMB and significant portion of the Group’s purchases is denominated in RMB and USD. The Group’s manufacturing operations are located in the PRC. Several subsidiaries of the Group have foreign currency sales and purchases, which expose the Group to foreign currency risk. Certain bank balances, trade receivables, trade, bills and other payables and unsecured bank borrowings are denominated in the foreign currencies of the relevant group entities. The Group currently does not have a foreign exchange hedging policy. However, the management of the Group monitors foreign exchange exposure and will consider hedging foreign exposure should the need arise. 32. 金融工具 （續） (b) 財務風險管理目標及政策 本集團之主要金融工具包括貿易及其他 應收款項、按金、銀行結餘及現金、貿 易、票據及其他應付款項、租賃負債以 及無抵押銀行借貸。該等金融工具之詳 情載於各有關附註內。該等金融工具涉 及之風險包括市場風險（外幣風險及利率 風險）、信貸風險及流動資金風險。下文 載列降低該等風險之政策。本公司董事 管理及監察該等風險，確保適時和有效 地採取適當措施。 市場風險 外幣風險 非衍生外幣貨幣資產與貨幣負債 本集團大部份銷售以人民幣列值，而本 集團大部份採購乃以人民幣及美元列值。 本集團之製造業務位於中國。 本集團的多間附屬公司以外幣進行買賣， 令本集團承受外幣風險。若干銀行結餘、 貿易應收款項、貿易、票據及其他應付款 項以及無抵押銀行借貸以相關集團實體 之外幣列值。本集團現時並無外匯對沖 政策。然而，本集團管理層會監察外匯 風險及於有需要時考慮對沖外匯風險。