Annual Report 2020

Sunny Optical Technology (Group) Company Limited • ANNUAL REPORT 2020 98 Directors’ Report 董事會報告 Compliance with Laws and Regulations The Group recognises the importance of compliance with the requirements of relevant laws and regulations. Any failure to comply with such requirements may result in termination of the operation permit. The Group has allocated systems and human resources to ensure continuing compliance with rules and regulations and sound working relationships with regulators through effective communications. For the year ended 31 December 2020, the Group has complied with the Listing Rules, the Securities and Futures Ordinance, the Companies Ordinance, the Restriction of Hazardous Substances Directive (the “ RoHS ”) of the European Union, the Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (the “ REACH ”) of the European Union, the Patent Law of the People’s Republic of China, the Contract Law and the Labour Law of the People’s Republic of China and other relevant rules and regulations. Main Risks and Uncertainties The main business activities of the Group include the production and sale of relevant products. It is exposed to a variety of main risks including interest rate risk, foreign exchange rate fluctuation risk, credit risk, cash flow interest rate risk and liquidity risk. Details of the above main risks and measures for risk reduction are set out in the section “Management Discussion and Analysis”. For the year ended 31 December 2020, the Group’s business and profitability growth were affected by the fluctuations and uncertainties of macroeconomic situations of mainland China and other countries around the world. Discrepancies of the monetary policies among major developed economies are expected to continue to affect the capital and trade flows as well as the asset price of mainland China. In addition, as the main business activities of the Group involve such fields as smartphones, vehicle imaging and sensing systems, security surveillance systems and optical instruments, they are also subject to relevant market environments. The long-term business and profitability growth of the Group are expected to be continuously impacted by variables of the Chinese macro-economy (including but not limited to consumer and asset price indices, credit demand and total output value growth) and qualitative factors (such as the development of political and economic policies of various countries in the world). 遵守法律及法規 本集團認識到遵守相關法規要求的重要性，不 符合該等要求可能導致經營許可的終止。本集 團已分配系統及人力資源，確保持續符合規則 及規例，並通過有效溝通與監管部門保持良好 工作關係。截至二零二零年十二月三十一日止 年度，本集團已遵守上市規則、《證券及期貨條 例》、《公司條例》、歐盟《關於限制在電子電氣 設備中使用某些有害成分的指令》（「 RoHS 」）、 歐盟《化學品的註冊、評估、授權和限制規則》 （「 REACH 」）、中華人民共和國《專利法》、中 華人民共和國《合同法》、《勞動法》以及其他相 關規則及規例。 主要風險及不確定性 本集團的主要業務活動包括生產和銷售相關產 品，其面臨多種主要風險，包括利率風險、匯 率波動風險、信貸風險、現金流量利率風險及 流動資金風險。上述主要風險及降低風險措施 詳情載於「管理層討論及分析」一節中。 截至二零二零年十二月三十一日止年度，本集 團的業務及盈利能力增長受中國內地及全球其 他國家的宏觀經濟狀況波動及不確定性影響。 全球主要發達經濟體貨幣政策的分化預期將繼 續影響中國內地的資金及貿易流動和資產價 格。另外，因為本集團的主要業務涉及智能手 機、車載成像及傳感系統、安防監控系統、光 學儀器等領域，所以也會受到相關市場環境的 影響。本集團的長期業務及盈利能力增長預期 將繼續受中國宏觀經濟可變因素（包括但不限 於消費者及資產價格指數、信貸需求、生產總 值增長）和質性因素（如世界各國政治及經濟政 策的發展）的影響。