2019-04-15 12:40Financial Position - As of December 31, 2018, the company had RMB 17.7 billion in cash and cash equivalents, and US$ 3.2 billion in cash and short-term investments[776] - If RMB 17.7 billion were converted to U.S. dollars at the exchange rate of RMB 6.8755 for US$1.00, the U.S. dollar cash balance would be US$ 5.7 billion[776] Inflation and Market Risks - The company has not been significantly affected by inflation, with consumer price index changes of 2.1%, 1.8%, and 1.9% in 2016, 2017, and 2018 respectively[777] - The company has not been exposed to material risks due to changes in market interest rates, and future interest income may be impacted[771] - The company expects that future interest income may fall short of expectations due to changes in market interest rates, although no material risks are anticipated[771] Foreign Exchange and Derivatives - The company has not used derivative financial instruments to hedge against foreign exchange risk, as all revenues and expenses are primarily in RMB[772] - The RMB appreciated approximately 7% against the U.S. dollar in 2017 but depreciated approximately 5% in 2018[773] Internal Controls - Management concluded that internal control over financial reporting was effective as of December 31, 2018, based on established criteria[790] - There were no changes in internal controls over financial reporting that materially affected the company during the reporting period[793] Investor Relations - The company was entitled to receive approximately US$ 10.9 million in reimbursement from the depositary for investor relationship program expenses in 2018[785]