Company: OSRH
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076461
Chunk: 22

Company: OSR Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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Interest rate risk refers to the risk
that interest income and interest expenses arising from deposits or borrowings will fluctuate due to changes in market interest rates
in the future, which mainly arises from deposits and borrowings with floating interest rates. The goal of interest rate risk management
is to maximize corporate value by minimizing uncertainty caused by interest rate fluctuations.

As of the end of the reporting period,
there are no financial instruments subject to a variable interest rate.

c.Price risk

Price risk is the risk that the fair
value of a financial instrument or future cash flows will change due to changes in market prices other than interest rate or foreign
exchange rate. As of the end of the reporting period, the Group is not exposed to commodity price risk. Investments in financial instruments
are made on a non-recurring basis according to management’s judgment.

14

Credit risk management

Credit risk is the risk of possible
losses in an asset portfolio in the events of counterparty’s default, breach of contract and deterioration in the credit quality
of the counterparty. For the risk management reporting purposes, the Group manages the credit risk systematically and pursues value maximization
and continuous growth of the Group by efficient resource allocation and monitoring non-performing loans. In order to reduce the risks
that may occur in transactions with financial institutions, such as cash and cash equivalents and various deposits, the Group conducts
transactions only with financial institutions with high creditworthiness. As of June 30, 2025, the Group believes that there are low
signs of material default, and the maximum exposure to credit risk as of June 30, 2025 is equal to the book value of financial instruments
(excluding cash).

Liquidity risk management

The Group constantly monitors its
liquidity positions to ensure that no borrowing limits or commitments are breached to meet operating capital needs. In estimating liquidity,
we also take into account external laws or legal requirements, such as the group’s financing plan, compliance with agreements,
internal target financial ratios and currency restrictions.

The Group’s liquidity risk analysis details as of
June 30, 2025 and December 31, 2024 are as follows:

    June 30, 2025 

    Remaining maturity 

    Cashflow by  
    Within  
    1 year to  
    More than 

    Book Value  
    contract  
    a year  
    3 years  
    3 years 
  
    Financial liabilities 
    $5