Interim Report 2021

Sunny Optical Technology (Group) Company Limited • INTERIM REPORT 2021 30 Management Discussion and Analysis 管理層討論與分析 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. For details of the Group’s foreign currency forward contracts and foreign currency option contract, please refer to Note 18 of the notes to the condensed 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, time deposits, financial assets at fair value through profit or loss, trade and other receivables and prepayment, equity instruments at fair value through other comprehensive income and debt instruments at amortised cost, 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 which is responsible for the determination of credit limits, credit approvals and other monitoring procedures to ensure that appropriate follow-up actions are taken to recover overdue debts. The Group also has purchased insurance relating to trade receivables. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of each reporting period to ensure that adequate impairment losses are made for irrecoverable amounts. Therefore, the Directors consider that the Group’s credit risk is significantly reduced. The amounts presented in the condensed consolidated statement of financial position are net of allowance for credit losses, estimated by the management based on prior experience and historical observed default rates, their assessment of the current economic environment and the discounted cash flows to be received in future. The Group has no significant concentration of credit risk since its trade receivables are dispersed over a large number of counterparties and customers. The credit risk on liquidity is limited because a majority of the counterparties are banks with high credit ratings by international credit-rating agencies. 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，以上交易以美元 或其它外幣計值。有關本集團遠期外匯合約及 外匯期權合約之詳情，請參閱簡明綜合財務報 表附註內的附註 18 。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、 定期存款、按公允值計入損益之金融資產、貿 易及其他應收款項及預付款項、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 高信貸風險。 為儘量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序，以確保採取適當的跟 進行動收回逾期債務。本集團亦已購買有關貿 易應收款項的保險。此外，本集團於每個報告 期期末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。簡明 綜合財務狀況表所示金額已扣除信貸虧損，乃 管理層根據過往經驗及歷史觀察違約率、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。由於本集團大 部分交易對手為獲國際信貸評級機構評定有高 信貸評級的銀行，故流動資金的信貸風險有 限。