{"url_path":"/sec/wyhg/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 QUANTITATIVE AND QUALITATIVE DISCLOSURES","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1999860/0001213900-26-056618-index.html","accession_number":"0001213900-26-056618","cik":"0001999860","ticker":"WYHG","issuer_name":"Wing Yip Food Holdings Group Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1999860/0001213900-26-056618-index.html","primary_entity_key":"0001999860","primary_entity_name":"Wing Yip Food Holdings Group Ltd"},"word_count":371,"has_tables":true,"body_markdown":"**Item 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES\nABOUT MARKET RISK**\n\n** **\n\n**Concentration of credit risks**\n\n \n\nFinancial instruments that potentially subject\nthe Company to significant concentration of credit risk consist primarily of cash and accounts receivable. As of December 31, 2025, 2024\nand 2023, the aggregate amounts of cash of $85,269,432, $87,927,726, and $90,963,594, respectively, were deposited at major financial\ninstitutions located in the PRC. In the event of bankruptcy of one of these financial institutions, the Company may not be able to claim\nits cash and demand deposits back in full. Management believes that these financial institutions are of high credit quality and continually\nmonitors the credit worthiness of these financial institutions.\n\n \n\nAccounts receivable are typically unsecured and\nderived from revenue earned from customers in the PRC, which are exposed to credit risk. The risk is mitigated by credit evaluations.\nThe Company maintains an allowance for credit losses, and actual losses have generally been within management’s expectations.\n\n \n\n**Currency convertibility risk**\n\n \n\nSubstantially all of the Company’s operating\nactivities are settled in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either\nthrough the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by\nthe People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions\nrequires submitting a payment application form together with supporting documents.\n\n \n\n**Interest rate risk**\n\n \n\nThe Company’s exposure to interest rate\nrisk primarily relates to the interest income generated by excess cash, which is mostly held in interest-bearing bank deposits. The Company’s\nexposure to interest rate risk also arises from its borrowings that have a floating rate of interest. The costs of floating rate borrowings\nmay be affected by the fluctuations in the interest rates. The Company has not been, and does not expect to be, exposed to material interest\nrate risks, and therefore has not used any derivative financial instruments to manage such interest risk exposure. The Company has not\nbeen exposed to material risks due to changes in market interest rates, and has not used any derivative financial instruments to manage\nthe interest risk exposure during the years ended December 31, 2025, 2024, and 2023."}