The Group’s principal financial liabilities comprise loans and borrowings, trade and other payables and other financial liability arising from a put option to a non-controlling interest. The main purpose of these financial liabilities is to finance the Group’s operations. The Group has trade and other receivables, and cash and bank deposits that derive directly from its operations.

The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks. There has been no change to the Group’s exposure to these financial risks or the manner in which it manages and measures the risks.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk.

The sensitivity analyses in the following sections relate to the position as of December 31, 2023 and 2024.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and the proportion of financial instruments in foreign currencies are all constant at December 31, 2024.

The analyses exclude the impact of movements in market variables on provisions and on the non-financial assets and liabilities of foreign operations.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates to the Group’s interest-bearing loans and borrowings from banks. The interest-bearing loans and borrowings of the Group are disclosed in Note 26.

The Group manages its interest rate risk by having a mixture of fixed and variable rates for its loans and borrowings.

The sensitivity analyses below have been determined based on the exposure to interest rates for interest-bearing loans and borrowings at the end of the reporting period and the stipulated change taking place at the beginning of the year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis points increase or decrease is used and represents management’s assessment of the possible change in interest rates.

If interest rate had been 50 (2023: 50) basis points higher or lower and all other variables were held constant, the profit before tax for the year ended December 31, 2024 of the Group would decrease/increase by RMB 12.5 million (US$1.7 million) (2023: decrease/increase by RMB 12.7 million) arising from interest expenses on interest-bearing loans and borrowings.

Foreign currency exchange rate risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign currency exchange rates. The Group’s exposure to this risk relates primarily to the cash and bank balances, purchases and sales that are denominated in currencies other than the respective functional currencies of the entities within the Group. The currencies giving rise to this risk are primarily the Singapore Dollar, US Dollar and Euro.

Foreign currency translation exposure is managed by incurring debt in the operating currency so that where possible operating cash flows can be primarily used to repay obligations in the local currency. This also has the effect of minimizing the exchange differences recorded against income, as the exchange differences on the net investment are recorded directly against equity.

The Group’s exposures to foreign currency are as follows:


	31.12.2023
	Singapore Dollar			Euro			US Dollar			Others
	RMB’000			RMB’000			RMB’000			RMB’000
Trade and other receivables		1,700			13,686			7,221			377
Cash and bank balances		157,073			5,337			18,162			24,114
Financial liabilities		(1,565	)		—			—			—
Trade and other receivables		(7,568	)		(13,689	)		(20,453	)		(12,795	)
Net assets/(liabilities)		149,640			5,334			4,930			11,696


	31.12.2024
	Singapore Dollar			Euro			US Dollar			Others
	RMB’000			RMB’000			RMB’000			RMB’000
Trade and other receivables		625			3,997			63,161			253
Cash and bank balances		133,884			7,212			13,124			1,117
Financial liabilities		(870	)		—			—			—
Trade and other payables		(7,628	)		(3,522	)		(7,238	)		(4,808	)
Net assets/(liabilities)		126,011			7,687			69,047			(3,438	)
US$’000		17,565			1,072			9,625			(479	)

A 10% strengthening of the following major currencies against the functional currency of each of the Group’s entities at the reporting date would increase/(decrease) profit before tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions.

Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to customer credit risk management. Credit limits are established for all customers based on internal rating criteria.

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed for all customers requiring credit.

An impairment analysis is performed at each reporting date using a provision matrix. The provision rates are determined based on days past due for groupings of various customer segments with similar loss patterns (i.e. by profiles of the customers). The calculation reflects the reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables are written-off after assessment and are not subject to enforcement activity. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 14. The Group’s share of bills receivables of a joint venture which was used as collateral as security is disclosed in Note 5.

Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix:


				Trade receivables
						Days past due
As of December 31, 2023	Total			Current		0 – 90 days			91-180 days			181-365 days			>365 days
	RMB’000			RMB’000		RMB’000			RMB’000			RMB’000			RMB’000
Expected credit loss rate		4.8	%		—		0.1	%		0.8	%		2.2	%		59.7	%
Estimated total gross carrying amount at default		1,549,332			921,884		350,376			97,382			93,015			86,675
Expected credit loss		54,894			—		294			753			2,067			51,780


				Trade receivables
							Days past due
As of December 31, 2024	Total			Current			0 – 90 days			91-180 days			181-365 days			>365 days
	RMB’000			RMB’000			RMB’000			RMB’000			RMB’000			RMB’000
Expected credit loss rate		12.6	%		0.4	%		7.8	%		15.7	%		21.2	%		71.4	%
Estimated total gross carrying amount at default		1,828,773			653,519			641,862			225,739			154,973			152,680
Expected credit loss		229,694			2,561			49,750			35,500			32,818			109,065

At December 31, 2024, the Group had top 5 customers (2023: top 5 customers) that owed the Group more than RMB 242.4 million (US$33.8 million) (2023: RMB 597.7 million) and accounted for approximately 13.3% (2023: 38.6%) of trade receivables (including trade amounts due from related parties but excluding bills receivables) respectively. These customers are located in the PRC. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets mentioned in Note 14. The Group’s share of bills receivables of a joint venture which was used as collateral as security is disclosed in Note 5.

Cash and fixed deposits are placed with reputable banks and financial institutions with high credit ratings and no history of default.

The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows, and having adequate amounts of committed credit facilities.

The table below summarizes the maturity profile of the Group’s financial assets and liabilities, as well as lease liabilities, based on contractual undiscounted payments.


	1 year or less		1 to 5 years		After 5 years		Total
As of December 31, 2023	RMB’000		RMB’000		RMB’000		RMB’000
Financial assets
Trade and bills receivables		7,412,577		—		—		7,412,577
Other receivables, excluding tax recoverable		823,650		—		—		823,650
Cash and bank balances		6,039,471		—		—		6,039,471
		14,275,698		—		—		14,275,698
Financial liabilities
Loans and borrowings		1,880,251		710,772		—		2,591,023
Trade and other payables (Note 22)		9,153,907		181,155		—		9,335,062
Lease liabilities		32,436		18,016		797		51,249
Other financial liability		—		81,368		—		81,368
		11,066,594		991,311		797		12,058,702


	1 year or less		1 to 5 years		After 5 years		Total		Total
As of December 31, 2024	RMB’000		RMB’000		RMB’000		RMB’000		US$’000
Financial assets
Trade and bills receivables		8,578,001		—		—		8,578,001		1,195,740
Other receivables, excluding tax recoverable		397,302		—		—		397,302		55,383
Cash and bank balances		6,433,593		—		—		6,433,593		896,818
		15,408,896		—		—		15,408,896		2,147,941
Financial liabilities
Loans and borrowings		1,903,247		645,124		—		2,548,371		355,233
Trade and other payables (Note 22)		10,230,724		171,768		—		10,402,492		1,450,067
Lease liabilities		34,335		30,711		758		65,804		9,173
Other financial liability		—		81,368		—		81,368		11,342
		12,168,306		928,971		758		13,098,035		1,825,815