Condensed Financial Information of The Parent Company

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

16. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

The Company performed a test on the restricted net assets of consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company.

The subsidiary did not pay any dividend to the Company for the years presented. For the purpose of presenting parent only financial information, the Company records its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiary” and the income of the subsidiary is presented as “share of income of subsidiary”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted.

The Company did not have other commitments or guarantees as of December 31, 2020 and 2021.

PARENT COMPANY BALANCE SHEETS

	As of December 31,
	2020			2021		2021
	RMB			RMB		USD
ASSETS
Current assets
Cash and cash equivalents		183			373		59
Prepaid expenses and other current assets		392			1,317		207
Amounts due from subsidiaries		236,403			25,995		4,079
Total current assets		236,978			27,685		4,345
Non-current assets
Investments in subsidiaries and consolidated VIE		359,394			805,136		126,343
TOTAL ASSETS		596,372			832,821		130,688
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accrued expenses and other current liabilities		-			2,414		379
Warrant liabilities		29,558			10,324		1,620
Current portion of contingent consideration – earn-out liability		92,183			10,638		1,669
Total current liabilities		121,741			23,376		3,668
Non-current liabilities
Contingent consideration – earn-out liability		15,116			-		-
Total liabilities		136,857			23,376		3,668
Shareholders’ equity
Ordinary share, no par value, unlimited Class A ordinary shares and 2,925,058 Class B ordinary shares authorized, 27,037,302 Class A ordinary shares and Nil Class B ordinary shares issued and outstanding as of December 31, 2020; 28,219,583 Class A ordinary shares and 2,625,058 Class B ordinary shares issued and outstanding as of December 31, 2021, respectively
Class A ordinary shares		(96,349	)		140,196		22,000
Class B ordinary shares					13,041		2,046
Shares to be issued		200,100			128,119		20,105
Statutory reserves		18,352			31,775		4,986
Retained earnings		322,610			479,199		75,197
Accumulated other comprehensive income		14,802			17,115		2,686
Total shareholder’s equity		459,515			809,445		127,020
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		596,372			832,821		130,688

PARENT COMPANY STATEMENT OF INCOME

	For the years ended December 31,
	2019		2020			2021		2021
	RMB		RMB			RMB		USD
Equity income of subsidiaries		149,918		184,869			267,436		41,967
General administrative expense and others		-		1,395			33,473		5,252
Research and development expenses		-		-			13,946		2,188
Change in fair value of warrant liabilities		-		3,904			16,421		2,577
Change in fair value of contingent consideration		-		(14,068	)		33,584		5,270
Net income		149,918		176,100			170,012		26,680
Other comprehensive income - foreign currency translation adjustment		-		14,802			2,313		363
Comprehensive income attributable to the Company’s shareholders		149,918		190,902			172,325		27,043

PARENT COMPANY STATEMENT OF CASH FLOWS

	For the years ended December 31,
	2019			2020			2021			2021
	RMB			RMB			RMB			USD
Cash flows from operating activities
Net income		149,918			176,100			170,012			26,680
Equity in earning of subsidiaries		(149,918	)		(184,869	)		(267,436	)		(41,967	)
Change in fair value of warrant liabilities		-			(3,904	)		16,421			2,577
Change in fair value of contingent consideration		-			14,068			33,584			5,270
Share Based Compensation		-			-			31,857			4,999
Changes in operating assets and liabilities
Prepaid expense and other current assets		-			(392	)		(925	)		(145	)
Accrued expenses and other current liabilities		-			-			2,414			379
Net cash provided by operating activities		-			1,003			(14,073	)		(2,207	)
Cash flows from investing activities
Proceeds from subsidiaries		136,953			-			-			-
Net cash provided by investing activities		136,953			-			-			-
Cash flows from financing activities
Dividends distribution to shareholders		(104,590	)		-			-			-
Capital distribution due to reorganization		(32,328	)		-			-			-
Due to related parties		-			(26,590	)		14,263			2,237
Net cash acquired in the reverse recapitalization		-			32,659			-			-
Payment of listing costs		-			(6,924	)		-			-
Net cash used in financing activities		(136,918	)		(855	)		14,263			2,237
Net increase in cash and cash equivalents		35			148			190			30
Cash and cash equivalents at beginning of the year		-			35			183			29
Cash and cash equivalents at end of the year		35			183			373			59