Condensed Financial Information of the Parent Company

12 Months Ended

Dec. 31, 2025

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 (e) (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, 2024 and 2025.

PARENT COMPANY BALANCE SHEETS

	As of December 31,
	2024			2025			2025
	RMB			RMB			US$
ASSETS
Current assets
Cash and cash equivalents		1,081			2,216			317
Prepaid expenses and other current assets		1,086			630			90
Total current assets		2,167			2,846			407
Non-current assets
Investments in subsidiaries and consolidated VIEs		1,219,246			636,348			90,997
TOTAL ASSETS		1,221,413			639,194			91,404
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accrued expenses and other current liabilities		2,078			2,005			287
Amounts due to subsidiaries		20,241			21,780			3,114
Total current liabilities		22,319			23,785			3,401
Total liabilities		22,319			23,785			3,401
Shareholders’ equity
Ordinary share, no par value, unlimited Class A ordinary shares and Class B ordinary shares authorized, 38,922,726 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2024, respectively; 39,537,710 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2025, respectively.
Class A ordinary shares		444,162			451,666			64,588
Class B ordinary shares		23,896			23,896			3,417
Treasury stocks		(19,952	)		(19,952	)		(2,853	)
Shares to be issued		20,817			20,817			2,977
Statutory reserves		50,705			34,091			4,875
Retained earnings		662,499			92,024			13,159
Accumulated other comprehensive income		16,967			12,867			1,840
Total shareholder’s equity		1,199,094			615,409			88,003
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		1,221,413			639,194			91,404

PARENT COMPANY STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) 

	For the years ended December 31,
	2023			2024			2025			2025
	RMB			RMB			RMB			US$
Share of income (loss) of subsidiaries and consolidated VIEs		(4,915	)		54,431			(577,911	)		(82,640	)
General administrative expense and others		(14,923	)		(9,567	)		(5,255	)		(752	)
Research and development expenses		(5,496	)		(5,179	)		(3,923	)		(561	)
Change in fair value of warrant liabilities		170			-			-			-
Change in fair value of contingent consideration		(5,624	)		-			-			-
Net income (loss)		(30,788	)		39,685			(587,089	)		(83,953	)
Other comprehensive income (loss) - foreign currency translation adjustment		(105	)		(998	)		(4,100	)		(586	)
Comprehensive income (loss) attributable to the Company’s shareholders		(30,893	)		38,687			(591,189	)		(84,539	)

PARENT COMPANY STATEMENT OF CASH FLOWS

	For the years ended December 31,
	2023			2024			2025			2025
	RMB			RMB			RMB			US$
Cash flows from operating activities
Net (loss) income		(30,788	)		39,685			(587,089	)		(83,953	)
Equity in loss (earning) of subsidiaries		4,915			(54,431	)		577,911			82,640
Change in fair value of warrant liabilities		(170	)		-			-			-
Change in fair value of contingent consideration		5,624			-			-			-
Share based compensation		13,637			10,579			7,504			1,073
Changes in operating assets and liabilities
Prepaid expense and other current assets		425			(266	)		456			65
Accrued expenses and other current liabilities		254			72			(73	)		(10	)
Net cash used in operating activities		(6,103	)		(4,361	)		(1,291	)		(185	)
Cash flows from financing activities
Due to subsidiaries		29,294			(17,406	)		2,426			347
Share repurchase		(2,734	)		(736	)		-			-
Net cash provided by (used in) financing activities		26,560			(18,142	)		2,426			347
Net increase (decrease) in cash and cash equivalents		20,457			(22,503	)		1,135			162
Cash and cash equivalents at beginning of the year		3,127			23,584			1,081			155
Cash and cash equivalents at end of the year		23,584			1,081			2,216			317