{"url_path":"/sec/ymt/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":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1991605/0001213900-26-057895-index.html","accession_number":"0001213900-26-057895","cik":"0001991605","ticker":"YMT","issuer_name":"Yimutian Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1991605/0001213900-26-057895-index.html","primary_entity_key":"0001991605","primary_entity_name":"Yimutian Inc."},"word_count":524,"has_tables":true,"body_markdown":"ITEM 11.QUANTITATIVE AND QUALITATIVE DISCLOSURES\nABOUT MARKET RISK\n\nForeign exchange\nrisk\n\nMost of our revenues and\nmost of our expenses are denominated in Renminbi. Our exposure to foreign exchange risk primarily relates to cash and cash equivalent\ndenominated in U.S. dollars. We do not believe that we currently have any significant direct foreign exchange risk and have not\nused any derivative financial instruments to hedge our exposure to such risk. Although, in general, our exposure to foreign exchange\nrisks should be limited, the value of your investment in the ADSs will be affected by the exchange rate between U.S. dollar and\nRMB because the value of our business is effectively denominated in RMB, while the ADSs representing our ordinary shares will be traded\nin U.S. dollars.\n\nThe conversion of Renminbi\ninto other currencies, including U.S. dollars, is based on rates set by the People’s Bank of China. The Renminbi has fluctuated\nagainst other currencies, at times significantly and unpredictably. The value of Renminbi against other currencies is affected by changes\nin China’s political and economic conditions and by China’s foreign exchange policies, among other things. It is difficult\nto predict how market forces or government policies may impact the exchange rate between Renminbi and other currencies in the future.\n\nTo the extent that we need\nto convert U.S. dollars into RMB for our operations, appreciation of RMB against the U.S. dollar would reduce the RMB amount\nwe receive from the conversion. Conversely, if we decide to convert RMB into U.S. dollars for the purpose of making payments for\ndividends on our ordinary shares or ADSs, servicing our outstanding debt, or for other business purposes, appreciation of the U.S. dollar\nagainst the RMB would reduce the U.S. dollar amounts available to us.\n\nAs of December 31, 2025,\nwe had RMB-denominated cash and cash equivalents of RMB311.9 million. A 10% depreciation of Renminbi against the U.S. dollar based on\nthe foreign exchange rate on December 31, 2025 would result in a decrease of US$4.5 million in cash and cash equivalents. A 10% appreciation\nof Renminbi against the U.S. dollar based on the foreign exchange rate on December 31, 2025 would result in an increase of US$4.5 million\nin cash and cash equivalents.\n\nInterest rate risk\n\nOur exposure to interest\nrate risk primarily relates to the interest income generated by excess cash invested in interest-bearing bank deposits with original\nmaturities of three months or less. We have not used any derivative financial instruments to manage our interest risk exposure.\nInterest-earning instruments carry a degree of interest rate risk. We have not been exposed, nor do we anticipate being exposed,\nto material risks due to changes in interest rates. However, our future interest income may be lower than expected due to changes in\nmarket interest rates.\n\nWe may invest the net proceeds\nthat we receive from our external financings in interest-earning instruments. Investments in both fixed-rate and floating rate interest-earning instruments\ncarry a degree of interest rate risk. Fixed-rate securities may have their fair market value adversely impacted due to a rise in\ninterest rates, while floating-rate securities may produce less income than expected if interest rates fall."}