Annual Report 2007

29 Annual Report 2007 年報 Off-Balance Sheet Transactions As of 31 December 2007, the Group did not have any material off-balance sheet transactions. Quantitative and Qualitative Disclosure about Market Risk Interest rate risk The Group is exposed to interest rate risks on its bank borrowings for working capital and capital expenditures that are associated with the Group’s expansion and for other uses. Upward fluctuations in interest rates increase the cost of both existing and new debt. During the year ended 31 December 2007, the effective interest rate on bank loans was approximately 5.1% per annum. The Group has not entered into any type of interest rate agreements or derivative transactions to hedge against interest rate changes. Foreign exchange rate fluctuation risk The Group exports a significant portion of its products to and makes purchases from international markets where transactions are denominated in U.S. dollars or other foreign currencies. To reduce the risk, the Group has considered entering into certain foreign exchange trading facilities to hedge against its currency risks. Credit risk The Group’s financial assets are bank balances and trade and other receivables, which represent the Group’s maximum exposure to credit risk in relation to financial assets. In order to minimise the credit risk in relation to trade receivables, the management has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the directors consider that the Group’s credit risk is significantly reduced. The amounts presented in the balance sheet are net of allowances for doubtful receivables, if any, estimated by the management based on prior experience, their assessment of the current economic environment and future discounted cash flow to receive. The Group has no significant concentration of credit risk for its trade receivables which spread over a large number of counterparties and customers. 資產負債表以外交易 於二零零七年十二月三十一日，本集團並無訂 立任何重大的資產負債表以外交易。 市場風險的量化和質化披露 利率風險 本集團面對作為營運資金以及用於本集團拓展 和其他用途的資本開支的銀行借貸利率風險。 利率上調會增加現有及新增債務成本。截至二 零零七年十二月三十一日止年度，銀行貸款實 際年利率約為 5.1% 。本集團並無訂立任何類 別的利率協議或衍生交易以對沖利率波動。 匯率波動風險 本集團大部分產品會出口銷售至國際巿場，同 時也自國際巿場購買大量產品，以上交易以美 元或其他外幣計算。為降低此風險，本集團已 考慮訂立若干外匯交易工具以對沖貨幣風險。 信貸風險 本集團的金融資產為銀行結存以及交易和其他 應收款項，即本集團所面對有關金融資產的最 大信貸風險。 為減低有關貿易應收款項的信貸風險，管理層 已委派專責隊伍，負責釐定信貸限額、審批信 貸及其他監察程式，確保採取跟進行動收回過 期債務。此外，本集團於各個結算日檢討各項 貿易債務的可回收金額，確保已為不可收回金 額計提足夠減值虧損。因此，董事認為本集團 的信貸風險已大大降低。資產負債表所示金額 已扣除呆壞賬撥備（如有），乃管理層根據過 往經驗、對當時經濟環境的評估及將於日後收 取的現金流量貼現值估計。 本集團的貿易應收款項分散於大量交易對手及 客戶，故無重大信貸集中風險。