Annual Report 2021

274 Sunny Optical Technology (Group) Company Limited • ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements 綜合財務報表附註 FOR THE YEAR ENDED 31 DECEMBER 2021 截至二零二一年十二月三十一日止年度 36. FINANCIAL INSTRUMENTS (Continued) b. Financial risk management objectives and policies (Continued) Interest rate benchmark reform As listed in Note 30, several of the Group’s LIBOR bank borrowings will be subject to the interest rate benchmark reform. The Group is closely monitoring the market and managing the transition to new benchmark interest rates, including announcements made by the relevant IBOR regulators. The Group anticipates that the interest rate benchmark reform will have no material impact on the consolidated financial statements in the future. LIBOR The Financial Conduct Authority has confirmed all LIBOR settings will either cease to be provided by any administrator or no longer be representative: • immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and Japanese yen settings, and the 1-week and 2-month US dollar settings; and • immediately after 30 June 2023, in the case of the remaining US dollar settings. Risks arising from the interest rate benchmark reform The following are the key risks for the Group arising from the transition: Interest rate related risks For contracts which have not been transitioned to the relevant alternative benchmark rates and without detailed fallback clauses, if the bilateral negotiations with the Group’s counterparties are not successfully concluded before the cessation of LIBORs, there are significant uncertainties with regard to the interest rate that would apply. This gives rise to additional interest rate risk that was not anticipated when the contracts were entered into. 36. 金融工具（續） b. 財務風險管理目標及政策（續） 利率基準改革 誠如附註 30 所列，本集團若干按倫敦 銀行同業拆息利率計息的銀行借貸將 受到利率基準改革的影響。本集團正 在密切監察市場及設法向新基準利率 （包括相關銀行同業拆息監管者公佈的 利率）過渡。本集團預測未來利率基準 改革將不會對綜合財務報表產生實質 性的影響。 倫敦銀行同業拆息利率 金融行為監管局已確認所有的倫敦銀 行同業拆息利率設置將不再由任何執 行機構提供報價或不再具代表性： • 就所有英鎊、歐元、瑞士法郎和 日元設置，以及 1 週與 2 個月美元 設置，有關日期為緊隨二零二一年 十二月三十一日之後；及 • 就其餘的美元設置，有關日期為緊 隨二零二三年六月三十日之後。 利率基準改革產生的風險 下列為本集團因過渡而產生的主要風 險： 利率相關風險 就尚未過渡至相關替代基準利率且無 詳細後備條款的合約而言，倘與本集 團交易對手的雙邊談判在倫敦銀行同 業拆息利率停止使用前未成功達成協 議，適用利率將具有重大不確定性， 這將在訂立合約時導致其他未曾預料 的利率風險。