Condensed Financial Information of the Company

12 Months Ended

Dec. 31, 2022

Condensed Financial Information of the Company

22.CONDENSED FINANCIAL INFORMATION OF THE COMPANY

Balance Sheets

	As of December 31,
	2021		2022
	RMB		RMB			US$
ASSETS
Current assets
Cash and cash equivalents		20,401		130,746			18,956
Short-term investments		—		—			—
Prepayments and other current assets, net		147,396		111,986			16,236
Due from subsidiaries and related parties, net		3,124,311		2,345,588			340,078
Total current assets		3,292,108		2,588,320			375,270
Non-current assets
Long-term investments		446,969		477,366			69,212
Investment in subsidiaries		897,699		474,435			68,788
Other non-current assets		2,881		—			—
Total non-current assets		1,347,549		951,801			138,000
Total assets		4,639,657		3,540,121			513,270
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accrued expenses and other current liabilities		19,110		10,595			1,536
Due to subsidiaries and related parties		1,159,795		301,582			43,725
Income tax payable		11,997		13,105			1,900
Total current liabilities		1,190,902		325,282			47,161
Deferred tax liabilities		40,908		40,897			5,930
Other non-current liabilities		128,721		140,611			20,387
Total non-current liabilities		169,629		181,508			26,317
Total liabilities		1,360,531		506,790			73,478
Shareholders’ equity
Class A ordinary shares (par value of US$0.000025 per share; 7,600,000,000 shares authorized; 487,234,522 and 480,604,900 shares issued as of December 31, 2021 and 2022, respectively; 487,234,522 and 479,458,004 shares outstanding as of December 31, 2021 and 2022, respectively)		79		80			12
Class B ordinary shares (par value of US$0.000025 per share; 1,400,000,000 shares authorized; 957,465,244 and 970,015,685 shares issued as of December 31, 2021 and 2022, respectively; 945,496,827 and 970,015,685 shares outstanding as of December 31, 2021 and 2022, respectively)		156		156			22
Additional paid-in capital		2,685,544		2,688,571			389,806
Retained earnings/(Accumulated losses)		505,085		(9,424	)		(1,366	)
Accumulated other comprehensive income		88,262		353,948			51,318
Total shareholders’ equity		3,279,126		3,033,331			439,792
Total liabilities and shareholders’ equity		4,639,657		3,540,121			513,270

Statements of Comprehensive income (loss)

	For the year ended December 31,
	2020			2021			2022
	RMB			RMB			RMB			US$
Revenues		—			—			—			—
Cost of revenues		—			—			—			—
Gross profit		—			—			—			—
Operating expenses
Research and development		(482	)		(3	)		—			—
General and administrative		(45,159	)		(21,978	)		(23,615	)		(3,424	)
Total operating expenses		(45,641	)		(21,981	)		(23,615	)		(3,424	)
Equity in loss of subsidiaries		(168,217	)		(352,616	)		(471,710	)		(68,391	)
Interest income (expense), net		2,325			(9	)		3,211			466
Foreign exchange (losses) gains, net		(315	)		71			280			41
Other income (expense), net		711,629			35,537			(25,441	)		(3,689	)
Income (loss) before income taxes		499,781			(338,998	)		(517,275	)		(74,997	)
Income tax (expenses) benefits		(83,049	)		(12,128	)		3,800			551
Net income (loss)		416,732			(351,126	)		(513,475	)		(74,446	)
Other comprehensive (loss) income, net of tax of nil
Unrealized losses on available-for-sale securities, net		(7,250	)		—			(8,269	)		(1,199	)
Foreign currency translation adjustments		(167,183	)		(75,078	)		273,955			39,720
Other comprehensive (loss) income		(174,433	)		(75,078	)		265,686			38,521
Total comprehensive income (loss)		242,299			(426,204	)		(247,789	)		(35,925	)

Statements of Cash Flows

	For the year ended December 31,
	2020			2021			2022
	RMB			RMB			RMB			US$
Net cash (used in) provided by operating activities		(2,186	)		666			(26,054	)		(3,777	)
Net cash provided by (used in) investing activities		1,345,523			(864,999	)		137,160			19,886
Net cash (used in) provided by financing activities		(1,453,285	)		891,960			—			—
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(121,395	)		(25,469	)		(761	)		(110	)
Net (decrease) increase in cash and cash equivalents and restricted cash		(231,343	)		2,158			110,345			15,999
Cash and cash equivalents and restricted cash at beginning of the year		249,586			18,243			20,401			2,958
Cash and cash equivalents and restricted cash at end of the year		18,243			20,401			130,746			18,957

(a) Basis of presentation

For the Company only condensed financial information, the Company records its investment in its subsidiaries, VIEs and subsidiaries of VIEs under the equity method of accounting. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries” and share of their income as “Equity in profit (loss) of subsidiaries” on the condensed statements of comprehensive income (loss). The subsidiaries VIEs and subsidiaries of VIEs did not pay any dividends to the Company for any of the years presented.

The Company only condensed financial information should be read in conjunction with the Group’s consolidated financial statements.

(b) Commitments and contingencies

The Company does not have any significant commitments or long-term obligations as of any of the periods presented.

The Staff of the Division of Enforcement of the SEC conducted an investigation relating to the Company’s disclosures for fiscal year 2015 regarding its relationship with one of its advertising business partners. The SEC investigation also relates to Rule 10b5-1 trading plans entered into by certain current and former officers and directors of the Company and sales of the Company’s ADS under those plans in 2015 and 2016. On September 21, 2022, the Company’s Chairman of the Board and Chief Executive Officer, Mr. Sheng Fu, reached a resolution with the SEC, the Company were not a party to the settlement. The SEC investigation is now closed, the Company has been informed that SEC had concluded its investigation with respect to the Company and did not intend to recommend an enforcement action.

Besides of the investigation mentioned above, there are no pending legal proceedings and litigations that would have a material adverse impact on the Company's financial positions, results of operations or cash flows as of December 31, 2022.