{"url_path":"/sec/epow/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1780731/0001213900-26-056928-index.html","accession_number":"0001213900-26-056928","cik":"0001780731","ticker":"EPOW","issuer_name":"E-Power Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1780731/0001213900-26-056928-index.html","primary_entity_key":"0001780731","primary_entity_name":"E-Power Inc."},"word_count":500,"has_tables":true,"body_markdown":"**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET\nRISK**\n\n \n\n**Interest Rate Risk**\n\n** **\n\nWe are exposed to interest rate risk while we\nhave short-term and long-term bank loans outstanding. Although interest rates for our short-term loans are typically fixed for the terms\nof the loans, the terms are typically twelve months and interest rates are subject to change upon renewal. Interest rate on long-terms\nloans is subject to the change of loan prime rate designated by the People’s Bank of China.\n\n** **\n\n**Credit Risk**\n\n** **\n\nCredit risk is controlled by the application of\ncredit approvals, limits and monitoring procedures. We manage credit risk through in-house research and analysis of the Chinese economy\nand the underlying obligors and transaction structures. We identify credit risk collectively based on industry, geography and customer\ntype. In measuring the credit risk of our sales to our customers, we mainly reflect the “probability of default” by the customer\non its contractual obligations and consider the current financial position of the customer and the current and likely future exposures\nto the customer.\n\n \n\n**Liquidity Risk**\n\n \n\nThe Company is exposed to liquidity risk, which\nis a risk that the Company will be unable to provide sufficient capital resources and liquidity to meet commitments and business needs.\nLiquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company\nwill turn to other financial institutions and related parties to obtain short-term and long-term funding to cover any liquidity shortage.\n\n \n\nOn January 9, 2025, Sunrise Guizhou obtained a\nbank loan of RMB300,000,000 from China Construction Bank (“CCB”), which was exclusively for construction payment of manufacturing\nfacilities and machine purchase. CCB transferred the loan funds to the Company’s bank account opened in CCB (“CCB\naccount”). The Company initiates payment to its supplier from CCB account and will be responsible for the authenticity and accuracy\nof the transaction. CCB shall subsequently perform a formality review on whether the payment is consistent with the loan purpose. The\nformality review includes checking transaction information, payment amount, payee and payee’s bank information. When CCB completes\nthe formality review and believes that the payment meets the loan purpose, the payment will be transferred to the payee’s bank account.\nAs of December 31, 2025, cash and cash equivalents in CCB account which would be subject to payment formality review was RMB 96,847,349,\nor $13,848,987.\n\n** **\n\n**Foreign Exchange Risk**\n\n** **\n\nWhile our reporting currency is the U.S. dollar,\nalmost all of our consolidated revenues, costs and expenses are denominated in RMB. Almost all of our assets are denominated in RMB. As\na result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange\nrate between the U.S. dollar and RMB. If the RMB depreciates against the U.S. dollar, the value of our RMB revenues, earnings and assets\nas expressed in our U.S. dollar financial statements will decline. We have not entered into any hedging transactions in an effort to reduce\nour exposure to foreign exchange risk."}