{"url_path":"/sec/cik-0001734262/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 ****FINANCIAL INFORMATION**","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":655,"has_tables":true,"body_markdown":"**ITEM 8.****FINANCIAL INFORMATION**\n\n**A.****Consolidated Statements and Other Financial Information**\n\nWe have appended consolidated financial statements filed as part of this annual report.\n\n**Legal Proceedings**\n\nWe are from time to time subject to various legal or administrative claims, proceedings and penalties arising in the ordinary course of business. Litigation or any other legal or administrative proceeding, regardless of the outcome, is likely to result in substantial cost and diversion of our management’s time and attention.\n\nIn August 2021, a local branch of the Ministry of Culture and Tourism ordered to confiscate approximately RMB451,801 as illegal earnings from and imposed a fine of approximately RMB458,882 on Molihong for providing online publication to the public without any internet publication service license and providing online pornography publication to the public on Fengdu Novel.\n\nFor risks and uncertainties relating to the pending cases against us, please see “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business—We may be subject to intellectual property infringement lawsuits which could be expensive to defend and may result in our payment of substantial damages or licensing fees, disruption to our product and service offerings, and reputational harm.”\n\nAs of December 31, 2025, we remains in a pending legal proceeding initiated by a cloud services provider. The dispute centers on differing interpretations over the calculation of service fees, related preferential terms and the amount of alleged liquidated damages under the relevant service agreement, which the parties have failed to resolve through negotiation. As of the date of this annual report, no conclusive judicial decision has been made with respect to this lawsuit.\n\nOther than the above, we are currently not a party to any material legal or administrative proceedings.\n\n130\n\n[Table of Contents](#TOC)\n\n**Dividend Policy**\n\nOur board of directors has complete discretion on whether to distribute dividends, subject to certain requirements of Cayman Islands law. In addition, our shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by our board of directors. Under Cayman Islands law, a Cayman Islands company may pay a dividend either out of profits or share premium account; *provided* that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business. Even if our board of directors decides to pay dividends, the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the board of directors may deem relevant.\n\nWe do not have any present plan to pay any cash dividends on our ordinary shares in the foreseeable future. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business.\n\nWe are a holding company incorporated in the Cayman Islands. We may rely on dividends from our subsidiaries in mainland China for our cash requirements, including any payment of dividends to our shareholders. PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends to us. See “Item 4. Information on the Company—B. Business Overview—Regulation—Regulations Relating to Foreign Currency Exchange and Dividend Distribution.”\n\nIf we pay any dividends on our ordinary shares, we will pay those dividends which are payable in respect of the Class A ordinary shares underlying our ADSs to the depositary, as the registered holder of such Class A ordinary shares, and the depositary then will pay such amounts to our ADS holders in proportion to Class A ordinary shares underlying the ADSs held by such ADS holders, subject to the terms of the deposit agreement, including the fees and expenses payable thereunder. Cash dividends on our Class A ordinary shares, if any, will be paid in U.S. dollars.\n\n**B.****Significant Changes**\n\nWe have not experienced any significant changes since the date of our audited consolidated financial statements included in this annual report."}