I
annual report 2014
Notes to the Financial Statements
31 December 2014 (Cont’d)
98
26. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont’d)
(i)
Credit risk (Cont’d)
The following shows the total amount due from the top ten (10) major customers as at the end of reporting
period, which represents more than 38% (2013: 41%) of the total trade receivables. Other than as mentioned,
the Group has no significant concentration of credit risk.
Group
2014
2013
RMB’000
RMB’000
Trade receivables
52,446
85,123
The Company does not have any significant concentration of credit risk other than the amount owing by a
subsidiary, which constitutes 100% (2013: 100%) of total receivables of the Company as at the end of each
reporting period.
At the end of the reporting period, the maximum exposure to credit risk of the Group and of the Company is
represented by the total carrying amount of these financial assets recognised in the statements of financial
position. There has been no change to the exposure to credit risk of the Group or the manner in which the risk
is managed and measured.
Information regarding the credit quality of trade and other receivables that are neither past due nor impaired
is disclosed in Note 11 to the financial statements.
In respect of the cash and bank balances placed with licensed financial institutions, the Directors believe
that the possibility of non-performance by these financial institutions is remote on the basis of their financial
strength.
(ii)
Liquidity and cash flow risk
The Group actively manages its debt maturity profile, operating cash flows and the availability of funding so as
to ensure that all operating, investing and financing needs are met. In executing its liquidity risk management
strategy, the Group measures its cash commitments and maintains a level of cash and cash equivalents deemed
adequate to finance the activities of the Group. There has been no change to the exposure of the Group to
liquidity and cash flow risk or the manner in which the risk is managed and measured.
The table below summarises the maturity profile of the liabilities of the Group and of the Company at the end
of the reporting period based on contractual undiscounted repayment obligations.
On demand
or within
One to
Over
31 December 2014
one year
five years
five years
Total
Group
RMB’000
RMB’000
RMB’000
RMB’000
Financial liabilities
Trade and other payables
84,650
–
–
84,650
Borrowings
10,000
–
–
10,000
94,650
–
–
94,650
