I
annual report 2014
Notes to the Financial Statements
31 December 2014 (Cont’d)
100
26. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont’d)
(iii)
Interest rate risk (Cont’d)
Interest
Within
rate
1 year
Total
Note
% RMB’000
RMB’000
At 31 December 2013
Fixed rate
Borrowings
17
6.06
10,000
10,000
Floating rate
Cash at bank
12
0.35
289,764
289,764
Sensitivity analysis for interest rate risk
The following table demonstrates the sensitivity analysis of the Group if interest rates at the end of each
reporting period changed by ten (10) basis points with all other variables held constant:
Group
2014
2013
RMB’000
RMB’000
Profit after tax
- Increase by 0.1% (2013: 0.1%)
380
209
- Decrease by 0.1% (2013: 0.1%)
(380)
(209)
(iv)
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument would fluctuate
because of changes in foreign exchange rates.
The Group and the Company are exposed to foreign currency risk on transactions that are denominated in
currencies other than functional currency of the operating activities.
The Group and the Company have not entered into forward foreign exchange contracts during the financial
year.
Sensitivity analysis for foreign currency risk
No sensitivity analysis for foreign currency risk is prepared at the end of the reporting period as the Group and
the Company do not have significant exposure to foreign currency risk.
