Annual Report 2011 年 報 - Neo-Neon LED Lighting International Ltd

NotES to tHE CoNSoLIDAtED
fINANCIAL StAtEMENtS
6. FINANCIAL INSTRUMENTS (Continued)
b. Financial risk management objectives and policies (Continued)
Market risk (Continued)
(ii)
Interest rate risk
During the period, the Group was exposed to cash flows interest rate risk through the impact of
the rate changes on floating interest rate bank loans and bank deposits.
The Group’s exposures to interest rates on financial assets and financial liabilities are detailed in
the liquidity risk management section of this note. The Group’s cash flow interest rate risk was
mainly concentrated on the fluctuation of Hong Kong Inter-Bank Offered Rate and Taiwan bank
interest rate arising from the Group’s HK$ and NT$ denominated borrowings. The Group’s
interest risk for bank deposits was mainly concentrated on the fluctuation of bank saving
interest rate offered by banks mainly in Hong Kong, PRC and Vietnam.
Sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates
for non-derivative instruments at the end of the reporting period. At the end of the reporting
period, for variable-rate bank deposits and bank loans, the analysis is prepared assuming the
amount of asset and liability outstanding at the end of the reporting period was in deposit
accounts or outstanding for the whole period. A 30 basis points (2009: 50 basis points)
represent management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 30 basis points (2009: 50 basis points) higher and all other variables
were held constant, the potential effect on profit for the period is as follows:
1.1.2010 1.1.2009
to 31.3.2011 to 31.12.2009
HK$’000
HK$’000
(Decrease) increase in profit for the period (1,436) 1,768
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NEO-NEON HOLDINGS LIMITED