Annual Report 2020

REPORT OF THE DIRECTORS 董事會報告書 86 SHOUGANG CONCORD CENTURY HOLDINGS LIMITED 首長寶佳集團有限公司 主要風險和不明朗因素 （續） 關於本集團之業績及財務狀況的風險和不 明朗因素 （續） c. 鋼簾線分部之市場和價格競爭增 加；及 d. 未能降低生產和營運成本，特別是 鋼簾線分部的某些單位固定生產成 本可以通過增加銷售和生產量來降 低。 2. 截止二零二零年十二月三十一日止年 度，本集團大部分的收入來源以人民幣為 單位，同時間本集團有一些貸款以港幣為 單位。所以，人民幣匯率的變動將影響本 集團的經營業績。此外，本集團的業績及 財務狀況均以人民幣為單位，但報告則以 港幣呈列，因此，人民幣匯率變動將在本 集團之業績及財務狀況轉換成港元時對 本集團的財務狀況產生影響。 3. 本集團需要根據香港財務報告準則對物 業、廠房及設備進行減值審閱。任何被確 認或撥回的未來減值損失取決於多種因 素，包括一般的經濟和金融狀況、市場競 爭、現行產品售價和市場利率。該被確認 或撥回的減值損失將對本集團的業績有 重大的影響。但是，減值損失為一項非現 金項目，因此將不會影響到本集團的未來 經營業務和財務狀況。 PRINCIPAL RISKS AND UNCERTAINTIES (continued) Risks and uncertainties relating to the Group’s results and financial position (continued) c. Increased market and price competition for steel cord segment; and d. Failure to reduce production and operating costs, in particular, certain unit fixed production costs of steel cord segment can be lowered by increase in sales and production volume. 2. For the year ended 31 December 2020, the majority of the revenue of the Group was denominated in RMB, while there were some borrowings of the Group dominated in HKD. Hence, any movement of the exchange rate of RMB will affect to the results of operations of the Group. Furthermore, the results and financial position of the Group are denominated in RMB but presented in HKD for reporting purposes, therefore, the movement of the exchange rate of RMB will have impact to the financial position of the Group when translating the Group’s results and financial position into HKD. 3. The Group is required to conduct an impairment review on its property, plant and equipment in accordance with the Hong Kong Financial Reporting Standards. Any future impairment loss to be recognised or reversed depends on various factors including the general economic and financial conditions, market competitions, prevailing product selling price and market interest rates. Such impairment loss to be recognised or reversed will have material impact to the results of the Group, however, the impairment loss is a non-cash item and therefore will not affect the future business operations and financial conditions of the Group.