Annual Report 2020

Sunny Optical Technology (Group) Company Limited • ANNUAL REPORT 2020 242 Notes to the Consolidated Financial Statements 綜合財務報表附註 FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度 36. FINANCIAL INSTRUMENTS (Continued) b. Financial risk management objectives and policies The Group’s financial instruments include derivative financial assets/liabilities, trade and other receivables, amounts with related parties, financial assets at FVTPL, debt instruments at amortised cost, equity instruments at FVTOCI, time deposits, short term fixed deposits, pledged bank deposits, bank balances and cash, trade and other payables, lease liabilities, bank borrowings, long term payables and bonds payable. Details of the financial instruments are disclosed in respective notes. The risks associated with these financial instruments include market risks (foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The policies on how to mitigate these risks are set out below. The management manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner. Market risks The Group’s activities expose it primarily to the market risks of foreign currency risk, interest rate risk and other price risk. Market risk exposures are further measured by sensitivity analysis. Details of each type of market risks are described as follows: Foreign currency risk The Group undertakes certain foreign currency sales and purchases, which expose the Group to foreign currency risk. Certain of the Group’s bank balances and cash, trade and other receivables, trade and other payables, bonds payable and bank borrowings are denominated in currencies other than the functional currency of the relevant group entities and expose to such foreign currency risk. The Group manages its foreign currency risk by closely monitoring the movement of the foreign currency rates and utilising foreign currency forward contracts and foreign currency option contracts. 36. 金融工具（續） b. 財務風險管理目標及政策 本集團的金融工具包括衍生金融資 產 ╱ 負債、貿易及其他應收款項、 與關連人士之間的款項、按公允值 計入損益的金融資產、按攤銷成本計 量的債務工具、按公允值計入其他全 面收益的權益工具、定期存款、短期 定期存款、已抵押銀行存款、銀行結 餘及現金、貿易及其他應付款項、租 賃負債、銀行借貸、長期應付款項及 應付債券。金融工具的詳情載於相關 附註。與此等金融工具相關的風險包 括市場風險（外匯風險、利率風險及 其他價格風險）、信貸風險及流動資 金風險。減輕此等風險的政策載列於 下文。管理層負責管理及監控此等風 險，確保及時有效地採取適當措施。 市場風險 本集團業務面臨的主要市場風險為外 匯風險、利率風險及其他價格風險。 市場風險進一步按敏感度分析界定。 以下為各類市場風險的詳情： 外匯風險 本集團進行若干外幣買賣，因而面對 外匯風險。本集團若干銀行結餘及現 金、貿易及其他應收款項、貿易及其 他應付款項、應付債券以及銀行借貸 均以相關集團實體功能貨幣以外的貨 幣計值且均面臨有關外匯風險。本集 團密切監控匯率變動及使用遠期外匯 合約及外匯期權合約以管理外匯風險。