Assets minus liabilities (balance sheet stuff) as far as I know. Most of the items, incl. cash, are kept in Chinese currency and have to be translated into US Dollar for reporting. Gains or losses coming from this translation have to be recorded somewhere.
The income statement shouldn't be affected as those numbers are reported in US Dollar anyway, using the current exchange rate at the time. But then, I am not an accountant and I believe someone else here can give you more details.
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