Company: GGR
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001886190-25-000017
Chunk: 150

Company: Gogoro Inc.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 11
Chunk 150
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ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to various risks in relation to financial instruments. The main types of risks are foreign currency risk and interest rate risk.

Foreign Exchange Risk

As most of our revenue and expenses are denominated in NTD, which is the main market in which we operate, we do not believe that we are currently exposed to significant direct foreign exchange risk operationally. Although in general our direct exposure to foreign exchange risks should be limited, the reporting result of operations in the financial statements will be affected by the exchange rate between U. S. dollar and NTD, as we use U. S. dollars as the reporting currency. The volatility in foreign exchange rates, in particular a weakening of NTD and other foreign currencies relative to the U. S. dollar, may negatively affect our revenues and results of operations.

We are also exposed to foreign exchange rate fluctuations as we convert the financial statements of our subsidiaries using foreign currencies such as NTD as functional currency into U. S. dollars in consolidation. Through changes in foreign currency exchange rates, the conversion of the foreign subsidiaries’ financial statements into U. S. dollars will lead to translation gains or losses, which are recorded net as a component of other comprehensive income.

Table of Contents

Our general policy is not to conduct cash flow, fair value, net investment and translation hedges. While we may enter in to hedging contracts from time to time, any change in the fair value of the contracts could be offset by changes in the underlying value of the transactions being hedged. While we have not engaged in the hedging of our foreign currency transactions as of the date of this annual report date and do not enter into any hedging contracts for trading or speculative purposes, we may in the future hedge selected significant transactions denominated in currencies other than the NTD.

The following table details Gogoro’s sensitivity to a 1% increase in NTD against USD. The sensitivity analysis included only outstanding foreign currency denominated monetary items. A positive number below indicated a decrease in pre-tax loss or an increase in equity associated with a 1% strengthening of NTD against USD. For a 1% weakening of NTD against USD, there would be an equal and opposite impact on pre-tax loss or equity, and the balances below would be negative.

                      For the Year Ended December 31                                                       
                      2024                                           2023                 2022             
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