Condensed Financial Information of the Parent Company

12 Months Ended

Dec. 31, 2024

Condensed Financial Information of the Parent Company [Line Items]

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

18. 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 subsidiaries 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 subsidiaries and consolidated VIEs” and the income (loss) of the subsidiary and consolidated VIEs is presented as “share of income (loss) of subsidiaries and consolidated VIEs”. 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, 2023 and 2024.

PARENT COMPANY BALANCE SHEETS

	As of December 31,
	2023			2024			2024
	RMB			RMB			US$
ASSETS
Current assets
Cash and cash equivalents		23,584			1,081			148
Prepaid expenses and other current assets		820			1,086			149
Total current assets		24,404			2,167			297
Non-current assets
Investments in subsidiaries and consolidated VIEs		1,165,326			1,219,246			167,037
TOTAL ASSETS		1,189,730			1,221,413			167,334
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accrued expenses and other current liabilities		2,006			2,078			285
Amounts due to subsidiaries		37,160			20,241			2,773
Total current liabilities		39,166			22,319			3,058
Total liabilities		39,166			22,319			3,058
Shareholders’ equity
Ordinary share, no par value, unlimited Class A ordinary shares and Class B ordinary shares authorized, 38,113,879 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2022, respectively; 38,922,726 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2024, respectively.
Class A ordinary shares		423,623			444,162			60,850
Class B ordinary shares		23,896			23,896			3,274
Treasury stocks		(19,216	)		(19,952	)		(2,733	)
Shares to be issued		30,777			20,817			2,852
Statutory reserves		44,698			50,705			6,947
Retained earnings		628,821			662,499			90,762
Accumulated other comprehensive income		17,965			16,967			2,324
Total shareholder’s equity		1,150,564			1,199,094			164,276
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		1,189,730			1,221,413			167,334

PARENT COMPANY STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) 

	For the years ended December 31,
	2022			2023			2024			2024
	RMB			RMB			RMB			US$
Share of income (loss) of subsidiaries and consolidated VIEs		198,340			(4,915	)		54,431			7,457
General administrative expense and others		(21,377	)		(14,923	)		(9,567	)		(1,309	)
Research and development expenses		(6,522	)		(5,496	)		(5,179	)		(710	)
Change in fair value of warrant liabilities		10,776			170			-			-
Change in fair value of contingent consideration		13,071			(5,624	)		-			-
Net income (loss)		194,288			(30,788	)		39,685			5,438
Other comprehensive income (loss) - foreign currency translation adjustment		955			(105	)		(998	)		(137	)
Comprehensive income (loss) attributable to the Company’s shareholders		195,243			(30,893	)		38,687			5,301

PARENT COMPANY STATEMENT OF CASH FLOWS

	For the years ended December 31,
	2022			2023			2024			2024
	RMB			RMB			RMB			US$
Cash flows from operating activities
Net income (loss)		194,288			(30,788	)		39,685			5,438
Equity in loss (earning) of subsidiaries		(198,340	)		4,915			(54,431	)		(7,457	)
Change in fair value of warrant liabilities		(10,776	)		(170	)		-
Change in fair value of contingent consideration		(13,071	)		5,624			-
Share based compensation		11,954			13,637			10,579			1,449
Changes in operating assets and liabilities
Prepaid expense and other current assets		72			425			(266	)		(36	)
Accrued expenses and other current liabilities		(662	)		254			72			10
Net cash used in operating activities		(16,535	)		(6,103	)		(4,361	)		(596	)
Cash flows from financing activities
Due to related parties		35,771			29,294			(17,406	)		(2,386	)
Share repurchase		(16,482	)		(2,734	)		(736	)		(101	)
Net cash provided by (used in) financing activities		19,289			26,560			(18,142	)		(2,487	)
Net increase (decrease) in cash and cash equivalents		2,754			20,457			(22,503	)		(3,083	)
Cash and cash equivalents at beginning of the year		373			3,127			23,584			3,231
Cash and cash equivalents at end of the year		3,127			23,584			1,081			148