统一企业中国 二零一三年中期报告

17Uni-President China Holdings Ltd. Interim Report 2013 Management Discussion & Analysis

Financial Management and Policy In view of the uncertain global economic outlook for 2013, the Group adheres to the principle of financial prudence. We responded to risks and moved forward in a steady pace by adjusting sales and marketing expenses, increasing in capital expenditures, and improving and expanding infrastructure according to market conditions. The Group ’s financial department formulates financial risk management policies based on the policies and programmes approved by the Board and under the guidance of the executive Director. Such financial risk management policies were regularly reviewed by the Group ’s internal audit department. The Group ’s

financial policies aim at reducing the impact of interest rate and exchange rate fluctuations on the Group ’s overall financial position, as well as minimising the Group ’s financial risk exposure.

The Group ’s financial department provides centralised financial risk (including interest rate and foreign exchange risks) and cash flow management, and cost-effective funding for the Group and its members. The functional currencies of most of the Group ’s members are Renminbi since the majority of their revenues are derived from operations in the PRC. Foreign exchange risk may arise from future borrowings from overseas and recognised assets or liabilities, such as cash and cash equivalents and borrowings, part of which are denominated in United States dollar and Hong Kong dollar. The Group uses foreign exchange forward contracts outside the PRC for risk management and control of the Group ’s assets and liabilities when interest or exchange rates were uncertain or fluctuate, or whenever suitable. Our policy is not to engage in speculative derivative financial transactions nor invest the current

capital in financial products with significant underlying leverage or risk, including hedge funds or similar instruments.

CONTINGENT LIABILITIES The Group did not have any material contingent liabilities as at 30 June 2013.

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