Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 137 The United Laboratories International Holdings Limited Annual Report 2019 41. FINANCIAL INSTRUMENTS Categories of financial instruments 2019 2018 RMB’000 RMB’000 Financial assets Financial asset at FVTPL 500 500 Financial assets at amortised cost 7,281,821 5,187,238 Financial liabilities Financial liabilities at amortised cost 7,572,535 6,827,424 Derivative financial instruments 297,471 185,254 Financial risk management objectives and policies The Group’s major financial instruments include trade and bills receivables, other receivables, pledged bank deposits, other pledged deposits, bank balances and cash, financial asset at FVTPL, trade and bills payables, convertible bonds, borrowings and lease liabilities. Details of these financial instruments are disclosed in respective notes. The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. The Group manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner. The risk arising from the Group’s financial instruments are mainly market risk (foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The directors review policies for managing each of these risks, details of which are summarised below.