Adagene(ADAG)2025-03-24 12:05Currency Exchange and Economic Conditions - The Renminbi depreciated approximately by 9% against the U.S. dollar in 2022, appreciated approximately by 3% in 2023, and depreciated approximately by 1% in 2024[1085]. - The Renminbi's value is influenced by China's political and economic conditions, and future changes to the exchange rate system may occur[1085]. - The company has not experienced significant direct foreign exchange risk, but the value of investments in ADSs may be affected by exchange rate fluctuations[1084]. Inflation and Consumer Price Index - Year-over-year percent changes in the consumer price index in China were an increase of 2.0% in December 2022, a decrease of 0.3% in 2023, and an increase of 0.1% in 2024[1087]. - The company anticipates that inflation in China has not materially impacted its operations since inception, but future inflation rates may pose risks[1087]. Interest Rate and Financial Instruments - The company has not been exposed to material risks due to changes in interest rates, but future interest income may be lower than expected due to market fluctuations[1083]. - The company has not used any derivative financial instruments to manage interest rate or foreign exchange risk exposure[1084]. - The company has not used any derivative financial instruments to hedge foreign exchange risk exposure[1084]. ADR Program and Fees - The company has not received reimbursement from the depositary for expenses incurred in respect of the ADR program as of the date of the annual report[1103]. - The depositary may charge fees for various transactions related to ADSs, including a fee of $5.00 for each 100 ADSs issued or surrendered[1092].