{"url_path":"/sec/raasy/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":"2026-05-08","source_url":"https://www.sec.gov/Archives/edgar/data/1804583/0001493152-26-021875-index.html","accession_number":"0001493152-26-021875","cik":"0001804583","ticker":"RAASY","issuer_name":"Cloopen Group Holding Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1804583/0001493152-26-021875-index.html","primary_entity_key":"0001804583","primary_entity_name":"Cloopen Group Holding Ltd"},"word_count":815,"has_tables":true,"body_markdown":"**ITEM\n11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**\n\n \n\n**Concentration\nRisk**\n\n \n\nNo\ncustomers individually represented greater than 10.0% of our total revenues in 2023, 2024 and 2025. Two suppliers represented 14.7% and\n13.4% of our total purchases in 2023, respectively. One of our suppliers represented 19.6% of our total purchases in 2024. No supplier\nrepresented greater than 10.0% of our total purchases in 2025.\n\n \n\nTwo\nof our customers represented 15.4% and 13.8% of our total accounts receivable, net including related party amounts and contract assets\nas of December 31, 2023, respectively. One customer represented 16.6% of our total accounts receivable, net including related party amounts\nand contract assets as of December 31, 2024. Two of our customers represented 13.2% and 11.6% of such balance as of December 31, 2025,\nrespectively.\n\n \n\nTwo\nof our suppliers represented 14.7% and 11.3% of our total accounts payable as of December 31, 2023, respectively. Two of our suppliers\nrepresented 13.3% and 12.4% of our total accounts payable as of December 31, 2024, respectively. One of our suppliers represented 14.1% of our total accounts payable as of December 31, 2025.\n\n \n\nOne\ncustomer represented 10.2% of our total contract liabilities as of December 31, 2023. No customers of us individually represented greater\nthan 10.0% of our total contract liabilities as of December 31, 2024. One customer represented 13.0% of our total contract liabilities\nas of December 31, 2025.\n\n \n\nOne\nsupplier individually represented 21.0% of our prepayments and other current assets excluding related party amounts as of December 31,\n2023. Two of our suppliers represented 20.8% and 10.8% of our prepayments and other current assets excluding related party amounts as\nof December 31, 2024, respectively. One supplier represented 23.6% of such balance as of December 31, 2025.\n\n \n\n**Credit\nRisk**\n\n \n\nFinancial\ninstruments that potentially expose us to concentrations of credit risk consist principally of cash, restricted cash, term deposits,\nshort-term investments and accounts receivable. The total amount of these financial instruments was RMB1,285 million and RMB1,063\nmillion (US$152 million) as of December 31, 2024 and 2025, respectively. Our investment policy requires cash, restricted cash, term\ndeposits and short-term investments to be placed with high-quality financial institutions and to limit the amount of credit risk\nfrom any one issuer. We regularly evaluate the credit standing of the counterparties or financial institutions.\n\n \n\n134\n\n \n\n \n\nWe\nconduct credit evaluations on our customers prior to delivery of goods or services. The assessment of customer creditworthiness is primarily\nbased on historical collection records, research of publicly available information and customer on-site visits by senior management.\nBased on this analysis, we determine what credit terms, if any, to offer to each customer individually. If the assessment indicates a\nlikelihood of collection risk, we will not deliver the services or sell the products to the customer or require the customer to pay cash,\npost letters of credit to secure payment or to make significant down payments.\n\n \n\n**Interest\nRate Risk**\n\n \n\nOur\nshort-term bank borrowings bear interests at fixed rates. If we were to renew these loans, we might be subject to interest rate risk.\n\n \n\n**Foreign\nCurrency Risk**\n\n \n\nOur\nreporting currency is Renminbi. The functional currency of us and our subsidiary incorporated in Hong Kong is the U.S. dollar. The functional\ncurrency of our subsidiary incorporated in Japan is Japanese Yen. The functional currency of our PRC subsidiaries, the VIE and the VIE’s\nsubsidiaries is Renminbi.\n\n \n\nTransactions\ndenominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing\nat the dates of the transactions. Monetary assets and liabilities denominated in a foreign currency are remeasured into the functional\ncurrency using the applicable exchange rates at the balance sheet dates. The resulted exchange differences are recorded as foreign currency\nexchange gains (losses), net in the consolidated statements of comprehensive loss.\n\n \n\nThe\nfinancial statements of us, our subsidiary incorporated in Hong Kong and our subsidiary incorporated in Japan are translated from the\nfunctional currency into Renminbi. Assets and liabilities are translated into Renminbi using the applicable exchange rates at the balance\nsheet dates. Equity accounts other than earnings (deficits) generated in the current period are translated into Renminbi using the appropriate\nhistorical rates. Revenues, expenses, gains and losses are translated into Renminbi using the average exchange rates for the relevant\nperiod. The resulted foreign currency translation adjustments are recorded as a component of other comprehensive loss in the consolidated\nstatements of comprehensive loss, and the accumulated foreign currency translation adjustments are recorded as a component of accumulated\nother comprehensive loss in the consolidated statements of changes in shareholders’ deficit.\n\n \n\nRenminbi\nis not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the PRC government, controls\nthe conversion of Renminbi to foreign currencies. The value of Renminbi is subject to changes of central government policies and international\neconomic and political developments affecting supply and demand in the PRC foreign exchange trading system market."}