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
+Added: is the US dollar, almost all of our consolidated revenues and consolidated costs and expenses are denominated in RMB.
+Added: All of our assets
+Added: are denominated in RMB except for some cash and cash equivalents and accounts receivables.
+Added: As a result, we are exposed to foreign exchange
+Added: risks as our revenues and results of operations may be affected by fluctuations in the exchange rate between US dollar and RMB.
+Added: RMB depreciates against the US dollar, the value of our RMB revenues, earnings and assets as expressed in our US dollar financial statements
+Added: 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
+Added: able to pass along minor incremental cost inflation to our customers, inflation such as increases in the costs of our products and overhead
+Added: costs may adversely affect our operating results.
+Added: We do not believe that inflation in China has had a material impact on our financial
+Added: position or results of operations to date, however, a high rate of inflation in the future may have an adverse effect on our ability to
+Added: maintain current levels of gross margin and selling and distribution, general and administrative expenses as a percentage of net revenues
+Added: if the selling prices 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.