Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 128 The United Laboratories International Holdings Limited Annual Report 2020 39. FINANCIAL INSTRUMENTS Categories of financial instruments 2020 2019 RMB’000 RMB’000 Financial assets Financial asset at FVTPL 500 500 Financial assets at amortised cost 6,773,539 7,281,821 Financial liabilities Financial liabilities at amortised cost 5,110,255 7,572,535 Derivative financial instruments – Convertible bond – 297,471 – Foreign currency swap contract 4,573 – Financial risk management objectives and policies The Group’s major financial instruments include trade and bills receivables, other receivables, commercial bills receivables, other pledged deposits, pledged bank deposits, bank balances and cash, financial asset at FVTPL, trade and bills payables, other payables, convertible bonds, borrowings, lease liabilities and derivative financial instrument. Details of the financial instruments are disclosed in respective notes. The risks associated with these financial instruments include market risk (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 of the Group manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner.