Financial Sensitivity and Risks - The company has a sensitivity analysis indicating that a 10% increase or decrease in interest rates would add or deduct RMB5.4 million (US$0.8 million) to interest expenses in FY 2020[794]. - A 10% depreciation of the U.S. dollar against the Renminbi may increase losses and shareholders' deficits by RMB0.8 thousand (US$0.1 thousand) for FY 2020[797]. - The company has not used any derivative financial instruments to manage interest rate or foreign exchange risk exposure[795][797]. - Liquidity risk is managed by monitoring financial positions and maintaining sufficient cash flows from operations and borrowings[800]. - The company aims to maintain a strong capital structure despite potential economic fluctuations and interest rate changes[795]. Currency and Inflation - The Renminbi appreciated approximately 10% against the U.S. dollar since June 2010, with fluctuations of approximately 3.2%, 4.1%, and (5.0)% in FY 2018, FY 2019, and FY 2020, respectively[796]. - Inflation in China has been relatively stable, with consumer price index increases of 2.1%, 2.9%, and 1.7% in 2018, 2019, and 2020, respectively[799]. Initial Public Offering (IPO) Proceeds - The company received net proceeds of US$44.5 million from its initial public offering, with total expenses incurred of approximately US$6.4 million[810][811]. - RMB229.2 million (US$33.8 million) of the IPO proceeds was used to expand the apartment network, including a deposit of approximately RMB200.0 million (US$29.5 million) for lease contracts[812]. - The company plans to use the remainder of the IPO proceeds as disclosed in its registration statements[813].
FLJ (FLJ) - 2020 Q4 - Annual Report