Annual Report 2007

Notes to the Consolidated Financial Statements 綜合財務報表附註 For the year ended 31 December 2007 截至二零零七年十二月三十一日止年度 116 Sunny Optical Technology (Group) Company Limited 舜宇光學科技（集團）有限公司 24. Financial Instruments (Continued) b. Financial risk management objectives and policies (Continued) Foreign currency risks The Group’s activities expose it primarily to the market risks of changes in price risk, interest rate risk and foreign currency rate risk. Market risk exposures are further measured by sensitivity analysis. There has been no change to the Group’s exposure to market risks or the manner in which it manages and measures the risk. Details of each type of market risks are described as follows: Price risk The Group undertook certain available-for-sale investments (as disclosed in note 15) in current year. Therefore, exposures to price risk because of changes in market prices arise. The Group has closely monitored the price risk and will consider hedging the risk exposure should the need arise. Price sensitivity analysis The sensitivity analysis has been determined based on the exposure to price risks for available-for-sale investments (excluding investment in an investee company which is measured at cost less impairments) fluctuating in the PRC stock market at the balance sheet date. If the price of respective investment had been 5% higher/lower, the Group’s investment revaluation reserve would approximately increase/decrease by RMB3,310,000 for the year ended 31 December 2007 as a result of the changes in fair value of available-for-sale investments. Interest rate risk The Group is exposed to cash flow interest rate risk due to the fluctuation of the prevailing market interest rate on pledged bank deposits and bank balances which carry at prevailing market interest rates. The Group currently does not have interest rate hedging policy. However, the Group monitors interest rate exposure and will consider hedging significant interest rate exposure should the need arise. The Group’s exposure to interest rate has increased during the current period mainly due to the increase in variable rate pledged bank deposits and bank balances at the year end. 24. 金融工具（續） b. 財 務 風 險 管 理 目 標 及 政策（續） 外幣風險 本集團業務的主要市場風險為價格波動 風險、利率風險及匯率風險。市場風險 進一步按敏感程度釐定。本集團的市場 風險或管理及界定風險的策略不變。以 下為各類市場風險的詳情： 價格風險 本年，本集團擁有若干可供出售投資（附 註 15 所披露者）。因此，市價改變令本集 團承受價格風險。本集團密切監控價格 風險，並於有需要時考慮對沖風險。 價格敏感度分析 價格敏感度分析乃根據結算日在中國股 票市場波動的可供出售投資（不包括以成 本扣除減值計算的於所投資公司的投資） 的價格風險而定。倘相關投資的價格上 升╱下降 5% ，令可供出售投資的公平值 改變，則本集團於截至二零零七年十二 月三十一日止年度的投資重估儲備應會 增加╱減少約人民幣 3,310,000 元。 利率風險 本集團面對來自按市場利率計息的已抵 押銀行存款及銀行結餘相關市場利率波 動的現金流量利率風險。本集團目前並 無利率對沖政策。然而，本集團會監管 利率風險，且會於有需要時考慮對沖重 大利率風險。 由於年底已抵押銀行存款及銀行結餘的 浮息上升，故本集團於期內的利率風險 亦擴大。