Interim Report 2017

Sunny Optical Technology (Group) Company Limited INTERIM REPORT 2017 16 Management Discussion and Analysis 管理層討論與分析 PERFORMANCE OF INVESTMENTS MADE AND FUTURE INVESTMENTS plan The Group’s investing activities mainly include the purchase and redemption of financial assets designated as at fair value through profit or loss, placement and withdrawal of pledged bank deposits, placement and withdrawal of short term fixed deposits and purchases of property, plant and equipment. For the six months ended 30 June 2017, the Group’s investments amounted to approximately RMB782.6 million, which mainly involves the purchases of machinery and equipment, as well as the initial production settings of new products, acquisition of land use right, intangible assets and the necessary equipment configurations of new projects. These investments enhanced the Group’s R&D and technology application capabilities and production efficiency, and thus expanded the sources of revenue. The Group adopts prudent financial policies, having its investment projects mostly capital-protected with fixed income, so as to strive for a stable and healthy financial position while improving the returns. The Group did not and has no plan to use any financial instrument for hedging purposes and will continue to fund its future investment from its own financial resources. Going forward, the Group intends to further invest to enhance its competitiveness. QUANT I TAT I VE AND QUAL I TAT I VE 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 expansion of the Group and for other uses. The rising of interest rates increases the costs of both existing and new debts. For the six months ended 30 June 2017, the effective interest rate on fixed-rate bank borrowings was approximately 3.62% per annum, while the effective interest on variable-rate bank borrowings was approximately from 1.99% to 2.35% per annum. 投資表現及未來投資計劃 本集團的投資活動主要包括購置及贖回按公允價 值計入損益的金融資產、存放及提取已抵押銀行 存款、存放及提取短期定期存款及購置物業、機 器及設備。截至二零一七年六月三十日止六個 月，本集團動用約人民幣 782,600,000 元進行投 資活動，主要用作購置機器及設備，以及新產品 之產能初始化設置，購買土地使用權、無形資產 和新項目的必要設備配置。該等投資增強了本集 團的研發及技術應用能力及生產效率，並拓闊了 收入來源。 本集團財務政策保持審慎原則，投資項目多為保 本且固定收益之項目，以求財務狀況穩健的同 時，提高回報。本集團並未且並無計劃使用任何 金融工具作對沖用途，並將繼續以其自身的財務 資源作為其未來投資之資金來源。 展望未來，本集團擬進一步投資以加強競爭力。 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 其它用途的資本開支的銀行借貸利率風險。利率 的上調會增加現有及新增債務之成本。截至二零 一七年六月三十日止六個月，固定利息銀行借貸 的實際年利率約 3.62% ，而可變利息銀行借貸的 實際年利率約 1.99% 至 2.35% 。