{"url_path":"/sec/cik-0001734262/10-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":"2026-04-27","source_url":"https://www.sec.gov/Archives/edgar/data/1734262/0001104659-26-048866-index.html","accession_number":"0001104659-26-048866","cik":"0001734262","ticker":null,"issuer_name":"CooTek(Cayman)Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1734262/0001104659-26-048866-index.html","primary_entity_key":"0001734262","primary_entity_name":"CooTek(Cayman)Inc."},"word_count":533,"has_tables":true,"body_markdown":"**ITEM 11.****QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n**Market Risks**\n\nForeign Exchange Risk\n\nA significant portion of our expenses and a certain percentage of our revenues are denominated in RMB. We have not used any derivative financial instruments to hedge exposure to such risk.\n\nThe conversion of Renminbi into other currencies, including U.S. dollars, is based on rates set by the People’s Bank of China. The Renminbi has fluctuated against other currencies, at times significantly and unpredictably. The value of Renminbi against other currencies is affected by changes in China’s political and economic conditions and by China’s foreign exchange policies, among other things. It is difficult to predict how market forces or government policies may impact the exchange rate between Renminbi and other currencies in the future.\n\nTo the extent that we need to convert U.S. dollars into Renminbi for our operations, appreciation of Renminbi against the U.S. dollars would have an adverse effect on Renminbi amount we receive from the conversion. Conversely, if we decide to convert Renminbi into U.S. dollars for the purpose of making payments for dividends on our ordinary shares or ADSs or for other business purposes, appreciation of the U.S. dollars against Renminbi would have a negative effect on the U.S. dollars amounts available to us.\n\nAs of December 31, 2025, we had RMB-denominated cash, cash equivalents and restricted cash of RMB6.0 million, HKD-denominated cash, cash equivalents and restricted cash of HKD3.7 million, and U.S. dollars-denominated cash, cash equivalents and restricted cash of US$2.3 million. Assuming we had converted the U.S. dollars-denominated cash, cash equivalents and restricted cash of US$2.3 million into RMB at the exchange rate of US$1.00 for RMB6.9931 as of December 31, 2025, an 10% appreciation or depreciation of RMB against the U.S. dollars as of December 31, 2025, would result in a decrease or an increase of RMB1.6 million in our cash, cash equivalents and restricted cash, respectively. Assuming we had converted the HKD-denominated cash, cash equivalents and restricted cash of HKD3.7 million into RMB at the exchange rate of HKD1.00 for RMB0.8985 as of December 31, 2025, an 10% appreciation or depreciation of RMB against HKD as of December 31, 2025, would result in a decrease or an increase of RMB0.3 million in our cash, cash equivalents and restricted cash, respectively.\n\nTo date, we have not entered into any hedging transactions in an effort to reduce our exposure to foreign currency exchange risk, but we may, in the future, enter into derivatives or other financial instruments in an attempt to hedge our foreign currency exchange risk. The effectiveness of these hedges may be limited and we may not be able to successfully reduce our exposure.\n\nInterest Rate Risk\n\nOur exposure to interest rate risk primarily relates to the interest expenses incurred on bank borrowings and income generated by excess cash, which is mostly held in interest-bearing bank deposits. Interest-earning instruments carry a degree of interest rate risk. We have not been exposed to material risks due to changes in interest rates, and we have not used any derivative financial instruments to manage our interest risk exposure. However, our future interest income may fall short of expectations due to changes in market interest rates."}