Huawei 2014 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2014 Huawei annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

41Management Discussion and Analysis
With other conditions unchanged, exchange rate fluctuations will impact the Group's net profit as follows:
Impact on net profit
CNY million
2014
CNY appreciates 5% against USD (578)
CNY appreciates 5% against EUR (173)
2013
CNY appreciates 5% against USD (1,147)
CNY appreciates 5% against EUR (172)
Interest Rate Risk
Interest rate risks arise from Huawei's long-term borrowings and long-term receivables. By analyzing its interest rate
exposures, the company uses a combination of fixed-rate and floating-rate bank loans to mitigate interest rate risks.
a) Interest-bearing long-term financial instruments held by the Group as of December 31, 2014
2014 2013
Effective
Interest Rate
%
Amount
CNY Million
Effective
Interest Rate
%
Amount
CNY Million
Fixed-rate long-term
financial instruments
– Long-term borrowings 8.50 62 4.34 2,731
– Bonds payable 4.96 1,583 5.94 991
Total 1,645 3,722
Floating-rate long-term
financial instruments
– Long-term receivables 0.80 (2,631) – –
– Long-term borrowings 2.33 15,933 2.41 16,268
Total 13,302 16,268