Company: NTCL
Filing Date: 2025-02-18
Form Type: 20-F
Source: 0001410578-25-000153
Chunk: 40

Company: NetClass Technology Inc
Filing Date: 2025-02-18
Form: 20-F
Item: Item 5
Chunk 40
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 U. S. regulators may consider cross-border cooperation with securities regulatory authority of the PRC by way of judicial assistance, diplomatic channels or regulatory cooperation mechanism established with the securities regulatory authority of the PRC.

Fluctuations in exchange rates could have a material adverse effect on our results of operations and the price of our Class A ordinary shares.

A part of our revenues and expenditures are denominated in RMB, whereas our reporting currency is the U. S. dollar. As a result, fluctuations in the exchange rate between the U. S. dollar and RMB will affect the relative purchasing power in RMB terms of our U. S. dollar assets. Our reporting currency is the U. S. dollar, while the functional currency for our PRC subsidiaries is RMB. Gains and losses from the re-measurement of assets and liabilities receivable or payable in RMB are included in our consolidated statements of operations. The re-measurement has caused the U. S. dollar value of our results of operations to vary with exchange rate fluctuations, and the U. S. dollar value of our results of operations will continue to vary with exchange rate fluctuations. A fluctuation in the value of RMB relative to the U. S. dollar could reduce our profits from operations and the translated value of our net assets when reported in U. S. dollars in our financial statements. This change in value could negatively impact our business, financial condition, or results of operations as reported in U. S. dollars. In the event that we decide to convert our RMB into U. S. dollars to make payments for dividends on our Class A ordinary shares or for other business purposes, appreciation of the U. S. dollar against the RMB will harm the U. S. dollar amount available to us. In addition, fluctuations in currencies relative to the periods in which the earnings are generated may make it more difficult to perform period-to-period comparisons of our reported results of operations.

There remains significant international pressure on the PRC government to adopt a flexible currency policy. Any significant appreciation or depreciation of the RMB may materially and adversely affect our revenues, earnings and financial position, and the value of, and any dividends payable on, our Class A ordinary shares in U. S. dollars. For example, to the extent that we need to convert U. S. dollars we receive from future offerings, if any, into RMB to pay our operating expenses, appreciation of the RMB against the U. S. dollar would adversely affect the RMB amount we would