Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 138 The United Laboratories International Holdings Limited Annual Report 2019 41. FINANCIAL INSTRUMENTS (Continued) Financial risk management objectives and policies (Continued) Market risk Foreign currency risk The Group has foreign currency sales and purchases, and also convertible bonds, certain bank balances and bank borrowings denominated in USD, Euro and HK$ other than the functional currency of respective group entities, which expose the Group to foreign currency risks. The Group manages its foreign currency risk by closely monitoring the movement of the foreign currency rate and using foreign exchange forward contracts to eliminate the currency exposures. The carrying amounts of the Group’s net monetary assets and monetary liabilities denominated in foreign currency, i.e. currency other than the functional currency of the respective group entities, at the end of the reporting period are as follows: Assets Liabilities 2019 2018 2019 2018 RMB’000 RMB’000 RMB’000 RMB’000 USD 356,403 587,056 1,027,071 841,012 Euro 42,089 6,800 687,217 165,870 HK$ 362,393 82,869 1,445,394 966,070