Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 38 MANAGEMENT DISCUSSION AND ANALYSIS 3. Foreign exchange management In general, contributions from the Group’s non-Hong Kong operations were affected by the movement of foreign currencies against Hong Kong dollar. The table below sets forth the exchange rates of Hong Kong dollar against the local currency of countries where the Group has significant operations: Rate as at As at 31 March 2019 As at 31 March 2018 Change HK$/AUD 5.56 5.99 (7.2%) HK$/RMB 1.17 1.25 (6.4%) HK$/MYR 1.92 2.03 (5.4%) HK$/GBP 10.20 11.02 (7.4%) HK$/CZK 0.34 0.37 (i) (8.1%) HK$/SGD 5.79 5.97 (3.0%) Average rates for FY2019 FY2018 Change HK$/AUD 5.78 5.96 (3.0%) HK$/RMB 1.21 1.19 1.7% HK$/MYR 1.98 1.89 4.8% HK$/GBP 10.61 10.35 2.5% HK$/CZK 0.36 N/A N/A HK$/SGD 5.88 5.77 1.9% Note: (i) As at 30 April 2018 The Group adopted a practice whereby investments in its non-Hong Kong operations are hedged by borrowings in the local currencies of the countries where such investments are made. The impact of movement in the above currencies to the Group’s profit attributable to shareholders of the Company for FY2019 is analysed below: Increase (decrease) to the Group’s profit attributable to shareholders of the Company for FY2019 assuming exchange rates of the following currencies against Hong Kong dollar remained constant during the year: HK$ million AUD 10.1 RMB (9.0) MYR (0.6) GBP (0.6) CZK (9.7) SGD (1.9) Total impact (11.7) The movement in foreign currencies also had impacts on the balance sheet position of the Group. As net assets of the Group’s non-Hong Kong operations are translated into Hong Kong dollar for consolidation purpose, the movement in foreign currencies will affect the Hong Kong dollar-equivalent of such net assets and therefore the Group’s net asset position. As a result of the fluctuation of the abovementioned foreign currencies against Hong Kong dollar during FY2019, the Group’s net asset value was down by HK$765 million.