Quantitative and Qualitative Disclosures about Market Risk.
−Removed: Exchange Risk
−Removed: our reporting currency is the US dollar, almost all of our consolidated revenues and consolidated costs and expenses are denominated
−Removed: All of our assets are denominated in RMB except for some cash and cash equivalents and accounts receivables.
−Removed: As a result, we
−Removed: are exposed to foreign exchange risks as our revenues and results of operations may be affected by fluctuations in the exchange rate
−Removed: between US dollar and RMB.
−Removed: If the RMB depreciates against the US dollar, the value of our RMB revenues, earnings and assets as expressed
−Removed: in our US dollar financial statements will decline.
−Removed: We have not entered into any hedging transactions in an effort to reduce our exposure
−Removed: to foreign exchange risk.
−Removed: we are generally able to pass along minor incremental cost inflation to our customers, inflation such as increases in the costs of our
−Removed: products and overhead costs may adversely affect our operating results.
−Removed: We do not believe that inflation in China has had a material
−Removed: impact on our financial position or results of operations to date, however, a high rate of inflation in the future may have an adverse
−Removed: effect on our ability to maintain current levels of gross margin and selling and distribution, general and administrative expenses as
−Removed: a percentage of net revenues if the selling prices of our products do not increase in line with the increased costs.
+Added: Foreign Exchange Risk
+Added: While our reporting currency is the US dollar,
+Added: almost all of our consolidated revenues and consolidated costs and expenses are denominated in RMB.
+Added: All of our assets are denominated
+Added: in RMB except for some cash and cash equivalents and accounts receivables.
+Added: As a result, we are exposed to foreign exchange risks as our
+Added: revenues and results of operations may be affected by fluctuations in the exchange rate between US dollar and RMB.
+Added: If the RMB depreciates
+Added: against the US dollar, the value of our RMB revenues, earnings and assets as expressed in our US dollar financial statements will decline.
+Added: We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk.
+Added: Although we are generally able to pass along minor
+Added: incremental cost inflation to our customers, inflation such as increases in the costs of our products and overhead costs may adversely
+Added: affect our operating results.
+Added: We do not believe that inflation in China has had a material impact on our financial position or results
+Added: of operations to date, however, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels
+Added: of gross margin and selling and distribution, general and administrative expenses as a percentage of net revenues if the selling prices
+Added: of our products do not increase in line with the increased costs.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.