Credit risk Our credit risk is mainly associated with cash and cash equivalents, restricted cash, short-term investment, long-term investment, and accounts receivable. We place our cash and cash equivalents, restricted cash, short-term investment and long-term investment with reputable financial institutions of high credit quality. As of December 31, 2025, 100% of our cash and cash equivalents and restricted cash were held at major financial institutions located in the PRC. There has been no recent history of default related to these financial institutions. We continue to monitor the credit worthiness of these financial institutions. Accounts receivables, typically unsecured and denominated in Renminbi, are derived from revenues earned from reputable customers. As of December 31, 2025, we had no single customer with a receivable balance exceeding 10% of the total accounts receivable balance. We manage credit risk of accounts receivable through ongoing monitoring of the outstanding balances. Foreign currency exchange risk From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For U.S. dollar against RMB, there was appreciation of approximately 2.9% and 2.8% in the years ended December 31, 2023 and 2024, respectively and depreciation of approximately 4.2% in the year ended December 31, 2025. For Japanese Yen (JPY) against RMB, there was depreciation of approximately 3.1% in the year ended December 31, 2025. It is difficult to predict how market forces or PRC or U.S. or Japanese government policy may impact the exchange rate between the RMB, the U.S. dollar and JPY in the future. Our functional currency and reporting currency are the US$ and the RMB, respectively. Most of our revenues and costs are denominated in RMB, while a portion of cash and cash equivalents are denominated in US$ and JPY. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi, the US$ and JPY in the future. Any significant fluctuation of the valuation of RMB may materially affect the Group’s cash flows, revenues, earnings and financial position, and the value of any dividends payable on the ADS in US$. Substantially all of our business is transacted in Renminbi, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the PBOC or other authorized financial institution at exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. Interest rate risk Fluctuations in market interest rates may negatively affect our financial condition and results of operations. We did not have any borrowings as of December 31, 2023 and 2024, and had long-term bank borrowings in the total amount of RMB1.7 million (US$0.2 million) as of December 31, 2025. We are not exposed to fair value interest rate risk due to our borrowings with fixed interest rates. We have not been exposed, nor do we anticipate to be exposed, to material risks due to changes in interest rates, and we have not used any derivative financial instruments to manage our interest risk exposure. We may incur additional borrowings or other facilities in the future. In addition, our future financial condition and results of operations may be affected due to changes in market interest rates. 148 Table of Contents Inflation Since our inception, inflation has not materially affected our results of operations. According to the National Bureau of Statistics of China, the year-over-year percent change in the consumer price index for 2023, 2024 and 2025 were increases of 0.2%, 0.2% and 0%, respectively. Although we have not been materially affected by inflation, we may be affected if China experiences higher rates of inflation in the future.