Annual Report 2019

28 Sunny Optical Technology (Group) Company Limited • ANNUAL REPORT 2019 Management Discussion and Analysis 管理層討論與分析 The Group derives its working capital mainly from cash on hand and net cash generated from operating activities. The Board expects that the Group will rely on net cash from operating activities, bank borrowings and debt financing to meet the demand of working capital and other capital expenditure requirements in the short run. In the long run, the Group will be mainly funded by net cash from operating activities and, if necessary, by additional bank borrowings, debt financing or equity financing. There were no material changes in the funding and financial policy of the Group for the year ended 31 December 2019. The Group’s balance of cash and cash equivalents was approximately RMB1,917.2 million as at 31 December 2019, representing an decrease of approximately RMB337.1 million compared to the balance at the end of last year. Operating Activities Cash inflow from operating activities was mainly generated from cash receipt from sales of the Group’s products. Cash outflow from operating activities was mainly due to the purchases of raw materials, staff costs, selling and distribution expenses, R&D expenditure and administrative expenses. Net cash generated from operating activities was approximately RMB4,661.6 million for the financial year of 2019 and net cash generated from operating activities was approximately RMB3,567.9 million for the financial year of 2018. The increase in the net cash generated from operating activities was mainly attributable to the increase in profit before tax and the increase in trade and other payables, which was partly offset by the increase in inventories and increase in trade and other receivables and prepayment compared to those of last year. The trade receivable turnover days (average of the opening and closing trade receivable balances/revenue × 365 days) decreased from approximately 67 days for the financial year of 2018 to approximately 65 days for the financial year of 2019. There was no significant difference in the number of trade receivable turnover days in these two financial years. The trade payable turnover days (average of the opening and closing trade payable balances/cost of sales × 365 days) decreased from approximately 83 days for the financial year of 2018 to approximately 82 days for the financial year of 2019. There was no significant difference in the number of trade payable turnover days in these two financial years. 本集團營運資金主要來自手頭現金及經營活動 所得之現金淨額。董事會預期本集團將依賴經 營活動所得現金淨額、銀行借貸及債券融資以 應付短期內的營運資金及其它資本開支需求。 長遠而言，本集團主要會以經營活動所得之現 金淨額以及額外銀行借貸、債券融資或股權融 資（如有需要）所得資金經營。截至二零一九年 十二月三十一日止年度，本集團的資金及財務 政策並無重大變動。 本集團於二零一九年十二月三十一日的現金 及現金等值項目餘額約人民幣 1,917,200,000 元 ， 比 去 年 年 底 餘 額 下 降 約 人 民 幣 337,100,000 元。 經營活動 經營活動所得現金流入主要來自本集團產品銷 售現金收入。經營活動所用現金流出主要用於 購買原材料、員工成本、銷售和分銷支出、研 發開支及行政開支。二零一九年財政年度的經 營活動所得現金淨額約人民幣 4,661,600,000 元，而二零一八年財政年度的經營活動所得現 金淨額則約人民幣 3,567,900,000 元。經營活 動所得現金淨額增加主要是由於相比於去年， 除稅前溢利增加和貿易及其他應付款項增加， 但被存貨的增加和貿易及其他應收款項及預付 款項的增加部分抵銷。 貿易應收款項周轉日數（期初和期末貿易應收 款項平均餘額╱收入 ×365 日）由二零一八年財 政年度的約 67 日下降至二零一九年財政年度的 約 65 日。這兩個財政年度的貿易應收款項周轉 日數沒有顯著差異。 貿易應付款項周轉日數（期初和期末貿易應付 款項平均餘額╱銷售成本 ×365 日）由二零一八 年財政年度的約 83 日下降至二零一九年財政年 度的約 82 日。這兩個財政年度的貿易應付款項 周轉日數沒有顯著差異。