{"url_path":"/sec/ncew/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/A","doc_date":"2026-06-08","source_url":"https://www.sec.gov/Archives/edgar/data/1968043/0001493152-26-027632-index.html","accession_number":"0001493152-26-027632","cik":"0001968043","ticker":"NCEW","issuer_name":"New Century Logistics (BVI) Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1968043/0001493152-26-027632-index.html","primary_entity_key":"0001968043","primary_entity_name":"New Century Logistics (BVI) Ltd"},"word_count":554,"has_tables":true,"body_markdown":"**ITEM\n11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n \n\n**Foreign\ncurrency risk**\n\n \n\nOur\nrevenues, expenses and assets and liabilities are primarily denominated in Renminbi. Renminbi is not freely convertible into foreign\ncurrencies for capital account transactions. The value of the Renminbi against the U.S. dollar and other currencies is affected by changes\nin China’s political and economic conditions and by China’s foreign exchange policies, among other things. In July 2005,\nthe PRC government changed its decades-old policy of pegging the value of the Renminbi to the U.S. dollar, and the Renminbi appreciated\nmore than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010, this appreciation subsided and\nthe exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. Since June 2010, the Renminbi has fluctuated\nagainst the U.S. dollar, at times significantly and unpredictably. On March 17, 2014, the PRC government announced a policy to further\nexpand the maximum daily floating range of Renminbi trading prices against the U.S. dollar in the inter-bank spot foreign exchange market\nto 2.0%. On August 10, 2015, the PRC government announced that it had changed the calculation method for Renminbi’s daily central\nparity exchange rate against the U.S. dollar, which resulted in an approximately 2.0% depreciation of Renminbi on that day. We expect\nRenminbi to fluctuate more significantly in value against the U.S. dollar or other foreign currencies in the future, depending on the\nmarket supply and demand with reference to a basket of major foreign currencies. It is difficult to predict how market forces or PRC\nor U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future.\n\n \n\nTo\ndate, we have not entered into any hedging transactions in an effort to reduce our exposure to foreign currency exchange risk. To the\nextent that we need to convert U.S. dollars we received from the offering into Renminbi for our operations or capital expenditures, appreciation\nof the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amount we would receive from the conversion. Conversely,\nif we decide to convert our Renminbi into U.S. dollars for the purpose of making payments for dividends on our ordinary shares or ADSs\nor for other business purposes, appreciation of the U.S. dollar against the Renminbi would have a negative effect on the U.S. dollar\namount available to us.\n\n \n\nIn\naddition, very limited hedging options are available in China to reduce our exposure to exchange rate fluctuations. To date, we have\nnot entered into any hedging transactions in an effort to reduce our exposure to foreign currency exchange risk. While we may decide\nto enter into hedging transactions in the future, the availability and effectiveness of these hedges may be limited and we may not be\nable to adequately hedge our exposure or at all. In addition, our currency exchange losses may be magnified by PRC exchange control regulations\nthat restrict our ability to convert Renminbi into foreign currency.\n\n \n\n**Concentration\nof credit risk**\n\n \n\nFinancial\ninstruments that potentially subject us to significant concentration of credit risk consist primarily of cash and cash equivalents and\nrestricted cash. As of September 30, 2024, substantially all of our cash and cash equivalents and term deposits were deposited with financial\ninstitutions with high-credit ratings and quality."}