{"url_path":"/sec/apex/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 ****QUANTITATIVE","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-12","source_url":"https://www.sec.gov/Archives/edgar/data/2069858/0001213900-26-054917-index.html","accession_number":"0001213900-26-054917","cik":"0002069858","ticker":"APEX","issuer_name":"APEX Global Solutions Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/2069858/0001213900-26-054917-index.html","primary_entity_key":"0002069858","primary_entity_name":"APEX Global Solutions Ltd"},"word_count":766,"has_tables":true,"body_markdown":"**ITEM 11.****QUANTITATIVE\nAND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n** **\n\nWe\nare exposed to market risks arising from changes in market rates and prices, including inflation risk, liquidity risk, credit risk, and\ninterest rate risk.\n\n \n\n**Foreign\nExchange Risk**\n\n** **\n\nOur\nfinancial statements are presented in Singapore Dollars. The U.S. Dollar balances included in the financial statements are translated\nfrom Singapore Dollars solely for the convenience of readers.\n\n \n\nThe\nmajority of our transactions are currently denominated in Singapore Dollars, with a portion conducted in foreign currencies. As our business\nexpands, we expect the volume of foreign currency–denominated transactions to increase. Any unfavorable shifts in exchange rates\ncould reduce the purchasing power of our foreign revenue and limit our ability to allocate funds efficiently for business growth. Since\nSingapore operates under a managed float exchange rate system regulated by the Monetary Authority of Singapore (MAS), external factors\nsuch as global economic conditions, interest rate policies, and trade relations can still influence exchange rate movements.\n\n \n\nTo\nthe extent that we need to convert U.S. Dollars into Singapore Dollars for our operations, an appreciation of the Singapore Dollar\nagainst the U.S. Dollar would have an adverse effect on the Singapore Dollars amount we receive from the conversion. Conversely,\nif we decide to convert Singapore Dollars into U.S. Dollars for the purpose of making payments for dividends on the Class A Ordinary\nShares or for other business purposes, an appreciation of the U.S. Dollar against the Singapore Dollar would have a negative effect\non the U.S. Dollars amounts available to us.\n\n \n\n65\n\n \n\n \n\nAs\nof December 31, 2025, we had cash denominated in Singapore Dollars amounting to S$868,982 (approximately US$675,807). A 10% depreciation\nof Singapore Dollar against the U.S. Dollar, based on the foreign exchange rate on December 31, 2025, would result in a decrease of S$86,898\n(approximately US$67,581) in cash and cash equivalents. Conversely, a 10% appreciation of Singapore Dollar against the U.S. Dollar would\nresult in an increase of S$86,898 (approximately US$67,581) in cash and cash equivalents.\n\n** **\n\n**Inflation\nRisk**\n\n** **\n\nInflation\nrates have been volatile in recent years. Inflation could cause a rise in the wages, materials and other expenses, which will in turn\nincrease our cost of revenue. We cannot assure you that the volatility in inflation rates will not continue in the future and/or we will\nbe able to transfer any increase in our cost of revenue resulting from inflation to our customers in a timely manner or at all. Although\nwe do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of\ninflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses as\na percentage of sales revenue if the revenues do not increase with such increased costs.\n\n \n\n**Liquidity\nRisk**\n\n \n\nWe\nare also exposed to liquidity risk, which is risk that we will be unable to provide sufficient capital resources and liquidity to meet\nour commitments and business needs. To manage liquidity risk, we monitor and maintain a level of cash and cash equivalents deemed adequate\nto finance our operations and mitigate the effects of fluctuations in cash flows. Our policy is to ensure that we have sufficient cash\nto meet our liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking\ndamage to our reputation.\n\n \n\n**Credit\nRisk**\n\n \n\nFinancial\ninstruments that potentially expose us to concentration on credit risk consist primarily of cash equivalents, accounts receivable, other\ncurrent assets, including deposits and other receivables, and amount due from related parties. We have designed our credit policies with\nthe objective of minimizing our exposure to credit risk. Our accounts receivable is short term in nature and the associated risk is minimal.\nWe conduct credit evaluations on our clients and generally do not require collateral or other security. We periodically evaluate the\ncreditworthiness of the existing clients in determining the allowance for expected credit losses primarily based upon the age of the\nreceivables and factors surrounding the credit risk of specific clients.\n\n \n\n**Interest\nRate Risk**\n\n \n\nAs\nwe have no significant interest-bearing assets, our income and operating cash flows are substantially independent of changes in market\ninterest rates.\n\n \n\nOur\ninterest rate risk arises from bank borrowings. We manage interest rate risk by varying the issuance and maturity dates of variable rate\ndebt, limiting the amount of variable rate debt, and continually monitoring the effects of market changes in interest rates. As of December\n31, 2025 and 2024, bank borrowings amounting to S$1,936,917 (approximately US$1,506,340) and S$2,798,451, respectively, were at floating\ninterest rates."}