{"url_path":"/sec/bq/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-07-13","source_url":"https://www.sec.gov/Archives/edgar/data/1815021/0001213900-26-077593-index.html","accession_number":"0001213900-26-077593","cik":"0001815021","ticker":"BQ","issuer_name":"Boqii Holding Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1815021/0001213900-26-077593-index.html","primary_entity_key":"0001815021","primary_entity_name":"Boqii Holding Ltd"},"word_count":783,"has_tables":true,"body_markdown":"**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n** **\n\n**Foreign currency exchange rate risk**\n\n \n\nThe depreciation of RMB against\nUS$ was approximately 1.7% in 2024. The depreciation of RMB against US$ was approximately 1.5% in 2025. The appreciation of RMB against\nUS$ was approximately 3.6% in 2026. It is difficult to predict how market forces or the PRC or the U.S. government policy may impact the\nexchange rate between RMB and US$ in the future.\n\n \n\nTo the extent that we need\nto convert U.S. dollars into RMB for our operations, appreciation of RMB against the U.S. dollar would reduce the RMB amount we receive\nfrom the conversion. Conversely, if we decide to convert RMB into U.S. dollars for the purpose of making payments for dividends on our\nordinary shares, servicing our outstanding debt, or for other business purposes, appreciation of the U.S. dollar against the RMB would\nreduce the U.S. dollar amounts available to us.\n\n \n\nAs of March 31, 2026, we\nhad RMB-denominated cash and cash equivalents of approximately RMB20.5 million (US$3.0 million). A 10% depreciation of RMB against U.S.\ndollar based on the foreign exchange rate on March 31, 2026 would result in a decrease of approximately US$0.3 million in cash and cash\nequivalents. A 10% appreciation of RMB against U.S. dollar based on the foreign exchange rate on March 31, 2026 would result in an increase\nof approximately US$0.3 million in cash and cash equivalents.\n\n** **\n\n**Interest rate risk**\n\n \n\nInterest rate risk is the\nrisk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our\ninterest rate risk arises primarily from long-term borrowings. As of March 31, 2026, we had not obtained long-term bank borrowings. Borrowings\nissued at variable rates and fixed rates expose us to cash flow interest rate risk and fair value interest rate risk respectively. We\nhave not been exposed to material risks due to changes in interest rates, and we have not used any derivative financial instruments to\nmanage our interest risk exposure.\n\n** **\n\n**Concentration of credit risk**\n\n \n\nFinancial instruments that\npotentially subject us to the concentration of credit risks consist of cash and cash equivalents, short-term investment, accounts receivable\nand amounts due from related parties. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance\nsheet dates. We deposit our cash and cash equivalents and short-term investment with financial institutions located in jurisdictions where\nthe subsidiaries are located. We believe that no significant credit risk exists as these financial institutions have high credit quality.\n\n \n\nAccounts receivables are\ntypically unsecured and are derived from revenue earned through third-party consumers. We conduct credit evaluations of third-party customers\nand related parties, and generally do not require collateral or other security from its third-party customers and related parties. We\nestablish an allowance for expected credit loss primarily based upon the age of the receivables and factors surrounding the credit risk\nof specific third-party customers and related parties.\n\n** **\n\n**Concentration of customers and suppliers**\n\n \n\nSubstantially all revenue\nwas derived from customers located in China. Revenues from Zhejiang HaoChao Network Technology Co., Ltd accounts for approximately 11.4%,\n28.0% and 47.5% of the total revenues of the Company for the years ended March 31, 2024, 2025 and 2026, respectively.\n\n \n\nRoyal Canin China Co., Ltd.\ncontributed to approximately 33% and 44% of our total purchases as for the year ended March 31, 2025 and 2026, respectively.\n\n \n\nThere are no customers from\nwhom accounts receivable individually represent greater than 10% of the total accounts receivable of the Company as of March 31, 2024\nand 2025. Royal Canin Pet Food (Shanghai) Co., Ltd. represent 12.6% of the Company’s total accounts receivable as of March 31, 2026.\n\n \n\n129\n\n \n\n \n\nThere are no supplier’s\naccounts that exceeded 10% of the Company’s total accounts payable as of March 31, 2024. As of March 31, 2025, accounts payable\nto Heze Jianuojia Pet Products Co., Ltd and Royal Canin China Co., Ltd accounted for 10% and 17% of the Company’s aggregate accounts\npayable, respectively. As of March 31, 2026, accounts payable to Heze Jianuojia Pet Products Co., Ltd accounted for 14.3% of the Company’s\naggregate accounts payable.\n\n \n\n**Inflation risk**\n\n \n\nSince our inception, inflation\nin China has not materially impacted our results of operations. According to the National Bureau of Statistics of China, the year-over-year\npercent changes in the consumer price index for March 2024, 2025, and 2026 were increases of approximately 0.1%, decrease of 0.1%, and\nincrease of 0.1%, respectively. Although we have not in the past been materially affected by inflation since our inception, we can provide\nno assurance that we will not be affected in the future by higher rates of inflation in China."}