Condensed Financial Information of the Parent Company

12 Months Ended

Dec. 31, 2022

Condensed Financial Information of the Parent Company [Abstract]

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

19. 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, 2021 and 2022.

PARENT COMPANY BALANCE SHEETS

	As of December 31,
	2021		2022			2022
	RMB		RMB			USD
ASSETS
Current assets
Cash and cash equivalents		373		3,127			453
Prepaid expenses and other current assets		1,317		1,245			181
Amounts due from subsidiaries		25,995		(7,759	)		(1,125	)
Total current assets		27,685		(3,387	)		(491	)
Non-current assets
Investments in subsidiaries and consolidated VIE		805,136		1,170,235			169,668
TOTAL ASSETS		832,821		1,166,848			169,177
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accrued expenses and other current liabilities		2,414		1,752			254
Warrant liabilities		10,324		166			24
Current portion of contingent consideration – earn-out liability		10,638		4,336			629
Total current liabilities		23,376		6,254			907
Non-current liabilities
Total liabilities		23,376		6,254			907
Shareholders’ equity
Ordinary share, no par value, unlimited Class A ordinary shares and Class B ordinary shares authorized, 28,219,583 Class A ordinary shares and 2,625,058 Class B ordinary shares issued and outstanding as of December 31, 2021, respectively. 36,684,668 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2022, respectively
Class A ordinary shares		140,196		396,880			57,542
Class B ordinary shares		13,041		23,896			3,465
Treasury stocks		-		(16,482	)		(2,390	)
Shares to be issued		128,119		33,923			4,918
Statutory reserves		31,775		39,208			5,685
Retained earnings		479,199		665,099			96,430
Accumulated other comprehensive income		17,115		18,070			2,620
Total shareholder’s equity		809,445		1,160,594			168,270
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		832,821		1,166,848			169,177

PARENT COMPANY STATEMENT OF INCOME

	For the years ended December 31,
	2020			2021		2022			2022
	RMB			RMB		RMB			USD
Equity income of subsidiaries		184,869			267,436		198,340			28,757
General administrative expense and others		1,395			33,473		(21,377	)		(3,099	)
Research and development expenses		-			13,946		(6,522	)		(946	)
Change in fair value of warrant liabilities		3,904			16,421		10,776			1,562
Change in fair value of contingent consideration		(14,068	)		33,584		13,071			1,895
Net income		176,100			170,012		194,288			28,169
Other comprehensive income - foreign currency translation adjustment		14,802			2,313		955			138
Comprehensive income attributable to the Company’s shareholders		190,902			172,325		195,243			28,307

PARENT COMPANY STATEMENT OF CASH FLOWS

	For the years ended December 31,
	2020			2021			2022			2022
	RMB			RMB			RMB			USD
Cash flows from operating activities
Net income		176,100			170,012			194,288			28,169
Equity in earning of subsidiaries		(184,869	)		(267,436	)		(198,340	)		(28,757	)
Change in fair value of warrant liabilities		(3,904	)		16,421			(10,776	)		(1,562	)
Change in fair value of contingent consideration		14,068			33,584			(13,071	)		(1,895	)
Share Based Compensation		-			31,857			11,954			1,733
Changes in operating assets and liabilities
Prepaid expense and other current assets		(392	)		(925	)		72			10
Accrued expenses and other current liabilities		-			2,414			(662	)		(96	)
Net cash provided by (used in) operating activities		1,003			(14,073	)		(16,535	)		(2,398	)
Cash flows from financing activities
Due to related parties		(26,590	)		14,263			35,771			5,186
Net cash acquired in the reverse recapitalization		32,659			-			(16,482	)		(2,390	)
Payment of listing costs		(6,924	)		-			-			-
Net cash provided by (used in) financing activities		(855	)		14,263			19,289			2,796
Net increase in cash and cash equivalents		148			190			2,754			399
Cash and cash equivalents at beginning of the year		35			183			373			54
Cash and cash equivalents at end of the year		183			373			3,127			453