Financial Performance - The company reported less than US$1.07 billion in revenue for the last fiscal year, qualifying as an "emerging growth company" under the JOBS Act[691]. Internal Control Weaknesses - As of December 31, 2019, the company did not maintain effective internal control over financial reporting due to identified material weaknesses[680]. - Three material weaknesses were identified, including ineffective controls related to credit card business, related party transactions, and insufficient financial reporting personnel[684][688][689]. - The company identified three material weaknesses in its internal controls over financial reporting as of December 31, 2019[691]. - There were no changes in internal controls over financial reporting that materially affected the company's internal control during the reporting period[694]. Remedial Measures - The company is implementing remedial measures to address these weaknesses, such as enhancing risk assessment procedures and improving financial reporting training[687][690]. Foreign Exchange and Interest Rate Risks - The company does not currently face significant direct foreign exchange risk as revenues and expenses are primarily in RMB, but fluctuations in the RMB to USD exchange rate could affect investment value[666]. - The company has not been exposed to material risks from changes in market interest rates and does not expect interest rate fluctuations to significantly impact financial conditions[668]. Inflation Impact - Inflation in China has not materially impacted the company's operations, with year-over-year consumer price index changes of 1.8%, 1.9%, and 4.5% for December 2017, 2018, and 2019 respectively[665]. ADR Program Reimbursements - The company received approximately $4.7 million in reimbursements from the depositary related to the establishment and maintenance of the ADR program as of December 31, 2020[677]. Auditor Attestation Exemption - The company is exempt from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002 due to its emerging growth company status[693].
Jianpu Technology(JT) - 2019 Q4 - Annual Report