Financial Position - As of December 31, 2020, the company had RMB 45.2 million (US$ 6.9 million) in RMB-denominated cash and term deposits and US$ 12.7 million in U.S. dollar-denominated cash and term deposits [522]. - Interest rate risk is considered not material due to limited excess cash beyond working capital needs [524]. Inflation Impact - The year-over-year percent changes in China's consumer price index for December 2018, 2019, and 2020 were increases of 1.9%, 4.5%, and 0.2%, respectively, indicating low inflation impact on operations [525]. - The company has not been materially affected by inflation in the past, but future higher rates of inflation in China may pose risks [525]. Internal Control and Financial Reporting - Management identified four material weaknesses in internal control over financial reporting as of December 31, 2020, which remain unremediated [536]. - Management concluded that internal control over financial reporting was not effective as of December 31, 2020, despite the consolidated financial statements presenting fairly in all material respects [537]. - The company plans to recruit additional staff with relevant accounting experience to address identified weaknesses in financial reporting [539]. - Management's remediation plans include designing and implementing robust financial reporting controls for significant and complex transactions [539]. Foreign Exchange and Derivatives - The company has not used any derivative financial instruments to hedge foreign exchange risk, which is limited due to most revenues and expenses being denominated in Renminbi [521]. Reimbursements - The company received approximately US$ 0.8 million, US$ 0.1 million, and US$ 0.3 million in reimbursements from the depositary for expenses related to the ADS program in 2018, 2019, and 2020, respectively [532].
Moatable(MTBL) - 2020 Q4 - Annual Report