Inflation Since our inception, inflation in China has not materially impacted our results of operations. According to the National Bureau of Statistics of China, inflation as measured by the consumer price index in China was 0.2%, 0.2% and 0.2% in 2023, 2024 and 2025, respectively. 125 Table of Contents Foreign Exchange Risk Our sales in China are denominated in Renminbi and our costs and capital expenditures are also largely denominated in Renminbi. Our sales outside China are generally denominated in U.S. dollar, Euro, Australian dollar, and Japanese Yen and we also incur expenses in foreign currencies, including U.S. dollar, Japanese Yen and Euro, in relation to the procurement of silicon materials, equipment and consumables such as crucibles. In addition, we have outstanding debt obligations, and may continue to incur debts from time to time, denominated and repayable in foreign currencies. Accordingly, any significant fluctuations between the Renminbi and the U.S. dollar and other foreign currencies including Japanese Yen and Euro could expose us to foreign-exchange risk. In addition, as we expand our sales to major export markets, we expect our foreign-exchange exposures will increase. We have entered into foreign exchange forward contracts with certain local banks to reduce volatility in our economic value caused by foreign currency fluctuations. These contracts are not designated as hedges and are marked to market at each reporting date, with changes in fair value recognized in the consolidated statements of operations. As of December 31, 2025, our foreign exchange forward contracts denominated in U.S. dollar and Euro had notional values of US$605.0 million and €215.0 million, respectively. These contracts mature within 12 months. To determine fair value of these contracts, we use a discounted cash-flow methodology to measure fair value, which requires inputs such as interest yield curves and foreign exchange rates. We had a loss relating to change in fair value of foreign exchange forward contracts recognized in earnings of RMB134.2 million (US$19.2 million) in 2025. However, we cannot predict the impact of future exchange rate fluctuations on our results of operations and may incur net foreign currency losses in the future in relation to unhedged foreign currency exposure or loss on our hedging instruments. We provide credit to our overseas customers. We recorded net foreign exchange gains of RMB0.94 billion, RMB484.4 billion, RMB7.0 million (US$1.0 million) in 2023, 2024 and 2025, respectively. The value of your investment in the ADSs will be primarily affected by the foreign-exchange rate between U.S. dollar and Renminbi. To the extent we hold assets denominated in U.S. dollar any appreciation of the Renminbi against the U.S. dollar could result in a change to our statement of operations and a reduction in the value of our U.S. dollar denominated assets. On the other hand, a decline in the value of the Renminbi against the U.S. dollar could reduce the U.S. dollar equivalent amounts of our financial results, the value of your investment in our company and the dividends we may pay in the future, if any, all of which may have a material adverse effect on the prices of ADSs. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—Fluctuations in exchange rates could adversely affect our results of operations.” As of December 31, 2025, we held RMB20.01 billion (US$2.86 billion) in cash and cash equivalents, of which RMB10.10 billion (US$1.44 billion) were denominated in U.S. dollar, a 5% change in the exchange rates between the Renminbi and the U.S. dollar would result in an increase or decrease of RMB504.8 million (US$72.2 million) in our cash and cash equivalents. Interest Rate Risk Our exposure to interest rate risks relates to interest expenses incurred in connection with our short-term and long-term borrowings, and interest income generated by excess cash invested in demand deposits and liquid investments with original maturities of three months or less. As of December 31, 2025, we had short-term borrowings (including the current portion of long-term bank borrowings and failed sale-leaseback financing) of RMB10.66 billion (US$1.52 billion). As of December 31, 2025, we had outstanding short-term borrowings of RMB134.4 million (US$19.2 million) and RMB426.1 million (US$60.9 million), which were denominated in JPY and USD, respectively, bearing a weighted average interest rates of 2.1% and 3.1% per annum, respectively. We have long-term borrowings (excluding the current portion of long-term bank borrowings and financing associated with failed sale-leaseback transactions due within one year) of RMB18.21 billion (US$2.60 billion), which bore interest at an average annual rate of 3.2% as of December 31, 2025. ​