Annual Report 2020

Sunny Optical Technology (Group) Company Limited • ANNUAL REPORT 2020 36 Management Discussion and Analysis 管理層討論與分析 QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK Interest Rate Risk The Group is exposed to interest rate risks arising from its bank borrowings for working capital and capital expenditures that are associated with the expansion of the Group and utilisation for other purposes. The rising of interest rates increases the costs of both existing and new debts. As at 31 December 2020, the effective interest rate on fixed-rate bank borrowings was approximately 2.96% per annum, while the effective interest rate of variable-rate bank borrowings was approximately 0.85% to 1.14% per annum. Foreign Exchange Rate Fluctuation Risk The Group exports a portion of its products to and purchases a considerable amount of products from international markets where transactions are denominated in USD or other foreign currencies. For details of the Group’s foreign currency forward contracts and foreign currency options contracts, please refer to Note 27 to the consolidated financial statements. Except for certain investments which are in line with the Group’s business and are denominated in foreign currencies, the Group does not and has no plan to make any foreign currency investment. Credit Risk The Group’s financial assets include derivative financial assets, bank balances and cash, pledged bank deposits, short term fixed deposits, time deposits, financial assets at fair value through profit or loss, trade and other receivables, equity instruments that are included in other comprehensive income at fair value and debt instruments measured at amortised cost, which represent the Group’s maximum exposure to credit risk in relation to financial assets. 市場風險的量化和質化披露 利率風險 本集團面對作為營運資金以及用於本集團拓展 和其他用途的資本開支的銀行借貸利率風險。 利率的上調會增加現有及新增債務之成本。於 二零二零年十二月三十一日，固定利息銀行借 貸的實際年利率約 2.96% ，而可變利息銀行借 貸的實際年利率約 0.85% 至 1.14% 。 匯率波動風險 本集團部分產品會出口銷售至國際市場，同時 也從國際市場購買大量產品，以上交易均以美 元或其他外幣計值。有關本集團遠期外匯合約 及外匯期權合約之詳情，請參閱綜合財務報表 附註 27 。除就本集團業務所進行及以外幣列值 的若干投資外，本集團並未及無計劃作出任何 外幣投資。 信貸風險 本集團的金融資產包括衍生金融資產、銀行結 餘及現金、已抵押銀行存款、短期定期存款、 定期存款、按公允值計入損益的金融資產、貿 易及其他應收款項、按公允值計入其他全面收 益的權益工具及按攤銷成本計量的債務工具， 為本集團所面對有關金融資產的最高信貸風險。