Annual Report 2018

46 SHOUGANG CONCORD CENTURY HOLDINGS LIMITED 首長寶佳集團有限公司 管理層論述及分析 MANAGEMENT DISCUSSION AND ANALYSIS During the year, the exchange rate of RMB depreciated by approximately 4.8% against HKD. The depreciation of RMB exchange rate has negative impact on the results of the Group on the translation of the Group’s interest bearing borrowings that are denominated in HKD, and the Group has not entered into derivative financial instruments to hedge against foreign currency risk in first half of 2018 as the rate was volatile. However, total of 5 foreign currency hedging contracts with aggregate notional amount of HK$180,000,000 and at future rates from RMB0.8757/HKD1 to RMB0.8913/HKD1 were executed in second half of 2018 to sell RMB vs HKD as RMB continued to depreciate. These contracts were classified as “fair value on derivatives held for trading” and were fully settled on 28 December 2018. We will review and adjust, when necessary, the currency composition of our interest bearing borrowings from time to time to minimise our risks on exchange and interest rate in respect of our interest bearing borrowings. In any event, we would keep monitoring the currency and interest rate composition of the Group’s interest bearing borrowings under the guidance of the Internal Control Manual and take appropriate action to minimise our exchange and interest rate risks when needed, such as entering into new derivative financial instruments to hedge the risk of RMB vs HKD exchange rate in 2019. BUSINESS DEVELOPMENT AND CAPITAL COMMITMENTS TESC Phase II Project Some of the existing production lines of brass wires of JESC, which have been in use for over 20 years, incur high maintenance and operation costs with relatively low production efficiency and quality instability. Construction of the new brass wire production lines of 20,000 tonnes per annum at TESC will enhance the efficiency of production of both JESC and TESC, which is expected to bring positive impact on the performance of the Steel cord segment. 於本年度，人民幣兌港幣匯率貶值約 4.8% 。 人民幣匯率貶值對本集團的業績在兌換本集團 以港幣為單位的計息貸款時有負面影響，由 於二零一八年上半年匯率波動較大，本集團 並未訂立衍生金融工具以對沖外匯風險。然 而，由於人民幣持續貶值，於二零一八年下半 年共執行五項外幣對沖合約，總名義金額為港 幣 180,000,000 元，期貨利率為人民幣 0.8757 元╱港幣 1 元至人民幣 0.8913 元╱港幣 1 元， 以賣人民幣兌港元。此等合約分類為「持作 買賣之衍生工具之公平值」，並於二零一八年 十二月二十八日全數結清。我們將有需要時檢 討及調整計息貸款的貨幣組合，以盡量減少我 們的計息貸款的匯率和利率風險。無論如何， 我們會根據內部監控指引下，持續監察本集團 計息貸款的貨幣及利率組合，及於需要時採取 適當行動，以減低匯兌及利率的風險，例如訂 立新衍生金融工具以對沖人民幣兌港元匯率風 險。 業務發展計劃及資本承擔 滕州東方二期項目 目前若干嘉興東方黃絲生產線已使用超過二十 多年，由於相對較低的生產效率及質量不穩定 性，產生高維護費和運營成本。在滕州東方建 造年產 20,000 噸的新黃絲線生產線將提高嘉 興東方和滕州東方兩廠的生產效率，這將預計 對鋼簾線分部的表現帶來正面影響。