Accounts Receivable, Net

12 Months Ended

Dec. 31, 2025

Accounts Receivable, Net [Abstract]

ACCOUNTS RECEIVABLE, NET

5. ACCOUNTS RECEIVABLE, NET

Accounts receivable and allowance for credit losses consist of the following:

	As of December 31,
	2024			2025			2025
	RMB			RMB			US$
Accounts receivable		231,742			176,261			25,205
Less: allowance for credit losses		(5,682	)		(132,971	)		(19,015	)
Accounts receivable, net		226,060			43,290			6,190

An analysis of the allowance for credit losses is as follows:

	For the years ended December 31,
	2023		2024		2025			2025
	RMB		RMB		RMB			US$
Balance, beginning of year		3,546		5,097		5,682			813
Additions		1,530		584		127,290			18,202
Exchange difference		21		1		(1	)		-
Balance, end of year		5,097		5,682		132,971			19,015

The Company’s provision for credit losses amounted to RMB1,530 and RMB584 for the years ended December 31, 2023 and 2024, respectively, and the provision for credit losses increased to RMB127,290 (US$18,202) for the year ended December 31, 2025. In estimating expected credit losses, the Company considered the uncertainties associated with regulatory policy changes in the industry and recent and expected market trends. The Company’s exposure to credit losses may increase if its debtors are adversely affected by changes, such as economic pressures or uncertainty associated with local and industry, or other customer-specific factors. Given the regulatory and tax policy changes for the livestreaming industry starting in the second half of 2025 and increasing credit risk of debtors in the livestreaming industry, the Company provided additional allowance for credit loss for debtors with high risk and delinquent accounts by assistance from third party valuation firm. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. The Company will continue to periodically review the allowance and make necessary adjustments accordingly.

Three unrelated distributors accounted for 30.3%, 24.8% and 12.1% of the Company’s accounts receivable as of December 31, 2023, respectively. Four unrelated distributors accounted for 33.2%, 26.5%, 18.3% and 10.3% of the Company’s accounts receivable as of December 31, 2024, respectively. Three unrelated distributors accounted for 42.5%, 25.5% and 19.0% of the Company’s accounts receivable as of December 31, 2025, respectively.