Annual Report 2019

36 Sunny Optical Technology (Group) Company Limited • ANNUAL REPORT 2019 Management Discussion and Analysis 管理層討論與分析 QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK Interest Rate Risk The Group is exposed to interest rate risks arising from 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. As at 31 December 2019, the effective interest rate on fixed- rate bank borrowings was approximately 2.77% per annum, while the effective interest rate of variable-rate bank borrowings was approximately 3.26% to 3.29% per annum. Foreign Exchange Rate Fluctuation Risk The Group exports a portion of its products to and purchases a considerable amount of products from international markets where transactions are denominated in USD or other foreign currencies. Please refer to the information of the Group’s foreign currency forward contracts and foreign currency options contracts at Note 28 of the notes to the consolidated financial statements. Except certain investments which are in line with the Group’s business and which are denominated in foreign currencies, the Group did not and has no plan to make any foreign currency investment. Credit Risk The Group’s financial assets include derivative financial assets, bank balances and cash, pledged bank deposits, short term fixed deposits, financial assets at fair value through profit or loss, trade and other receivables, amount due from a related party, equity instruments that are included in other comprehensive income at fair value and debt instruments measured at amortised cost, which represent the Group’s maximum exposure to credit risk in relation to financial assets. 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。於 二零一九年十二月三十一日，固定利息銀行借 貸的實際年利率約 2.77% ，而可變利息銀行借 貸的實際年利率約 3.26% 至 3.29% 。 匯率波動風險 本集團部分產品會出口銷售至國際市場，同時 也從國際市場購買大量產品，以上交易均以美 元或其它外幣計算。有關本集團遠期外匯合約 及外匯期權合約之詳情，請參閱綜合財務報表 附註 28 。除就本集團業務所進行及以外幣列值 的若干投資外，本集團並未及無計劃作出任何 外幣投資。 信貸風險 本集團的金融資產包括衍生金融資產、銀行結 餘及現金、已抵押銀行存款、短期定期存款、 按公允價值計入損益之金融資產、貿易及其他 應收款項、應收關連人士款項、按公允值計入 其他全面收益的權益工具及按攤銷成本計量的 債務工具，為本集團所面對有關金融資產的最 大信貸風險。