Quantitative and Qualitative Disclosures About Market Risk.
−Removed: Interest and Credit Risk
−Removed: Financial instruments that are potentially subject to credit risk consist of cash, cash equivalents, restricted cash and short-term investments.
−Removed: The carrying amounts of cash, cash equivalents, restricted cash and short-term investments represent the maximum amount of loss due to credit risk.
−Removed: We had cash and cash equivalents of $3.1 billion and $3.9 billion, restricted cash of $13.6 million and $5.5 million, and short-term investments of $0.1 billion and $0.7 billion as of September 30, 2023 and December 31, 2022, respectively.
−Removed: Our cash and cash equivalent are deposited with various major reputable financial institutions located within or outside the PRC.
−Removed: The deposits placed with these financial institutions are not protected by statutory or commercial insurance.
−Removed: In the event of bankruptcy of one of these financial institutions, we may be unable to claim our deposits back in full.
−Removed: We believe that these financial institutions are of high credit quality, and we continually monitor the credit worthiness of these financial institutions.
−Removed: On September 30, 2023, our short-term investments consisted of U.S.
−Removed: treasury securities.
−Removed: We believe that the U.S.
−Removed: treasury securities are of high credit quality and continually monitor the credit worthiness of these institutions.
−Removed: The primary objectives of our investment activities are to preserve principal, provide liquidity, and maximize income without significant increasing risk.
−Removed: Our primary exposure to market risk relates to fluctuations in the interest rates, which are affected by changes in the general level of PRC and U.S.
−Removed: interest rates.
−Removed: Given the short‑term nature of our cash equivalents, we believe that a sudden change in market interest rates would not be expected to have a material impact on our financial condition and/or results of operation.
−Removed: We estimate that a hypothetical 100-basis point increase or decrease in market interest rates would result in a decrease o f $0.2 million or an increase of $0.2 million, respe ctively, as of September 30, 2023.
−Removed: We do not believe that our cash, cash equivalents and short-term investments have significant risk of default or illiquidity.
−Removed: While we believe our cash, cash equivalents, and short-term investments do not contain excessive risk, we cannot provide absolute assurance that in the future investments will not be subject to adverse changes in market value.
−Removed: We had accounts receivable, net of $309.1 million and $173.2 million as of September 30, 2023 and December 31, 2022, respectively.
−Removed: Accounts receivable, net represent amounts arising from product sales and amounts due from our collaboration partners.
−Removed: We monitor economic conditions to identify facts or circumstances that may indicate receivables are at risk of collection.
−Removed: To date, we have not experienced any significant losses with respect to the collection of our accounts receivable.
+Added: Interest Risk
+Added: We are exposed to risk related to changes in interest rates on our outstanding borrowings.
+Added: We had $668.4 million of outstanding floating rate debt as of March 31, 2024.
+Added: A 100-basis point increase in interest rates as of March 31, 2024 would increase our annual pre-tax interest expense by approximately $6.7 million.
Foreign Currency Exchange Rate Risk
8 unchanged sentences
The RMB compared to the U.S.
−Removed: dollar depreciated approximately 5.5% in the nine months ended September 30, 2023 and depreciated approximately 8.2% in the year ended December 31, 2022, respectively.
+Added: dollar depreciated approximately 1.7% in the three months ended March 31, 2024 and depreciated approximately 2.8% in the year ended December 31, 2023, respectively.
It is difficult to predict how market forces or PRC or U.S.
15 unchanged sentences
Inflation generally affects us by increasing our cost of labor and clinical trial costs.
−Removed: We do not believe that inflation has had a material effect on our results of operations during the nine months ended September 30, 2023.
+Added: We do not believe that inflation has had a material effect on our results of operations during the three months ended March 31, 2024.
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.