CooTek Cayman(CTKYY) - 2022 Q4 - Annual Report

Inflation and Economic Impact - Inflation in mainland China has shown year-over-year increases in the consumer price index of 0.2% in 2020, 1.5% in 2021, and 1.8% in 2022, but has not materially impacted the company's operations to date [812]. - The company has not been materially affected by inflation in the past, but future inflation rates in China remain uncertain [812]. Cash and Currency Management - As of December 31, 2022, the company held RMB45.2 million in RMB-denominated cash, HKD3.7 million in HKD-denominated cash, and US$2.8 million in U.S. dollar-denominated cash [816]. - An 8% appreciation or depreciation of RMB against the U.S. dollar would result in a change of RMB1.6 million in cash and cash equivalents, while the same change against HKD would result in a change of RMB0.3 million [816]. Foreign Currency Exchange Risk - The company has not entered into any hedging transactions to mitigate foreign currency exchange risk, but may consider derivatives or other financial instruments in the future [817]. - The company has not used any derivative financial instruments to hedge foreign exchange risk, indicating a potential area for future risk management strategies [817]. - The exchange rate between RMB and U.S. dollar has experienced volatility, making future predictions difficult [817]. Interest Rate Risk - Interest rate risk exposure is primarily related to interest expenses on bank borrowings and income from interest-bearing deposits, with no material risks identified to date [818]. - The company has not used any derivative financial instruments to manage interest rate risk exposure, and future interest income may fall short of expectations due to market changes [818]. Other Financial Information - The company did not receive any reimbursement from the depositary for the year ended December 31, 2022 [829].