PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

23.  PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed balance sheets

	As of December 31,
	2020	2021
	RMB	RMB	US$
ASSETS
Current assets:
Cash and cash equivalents	180,001	3,078,291	483,051
Amount due from a shareholder	22,335	12,975	2,036
Amounts due from subsidiaries	13,082,149	15,657,977	2,457,078
Other current assets	10,889	3,951	619
Total current assets	13,295,374	18,753,194	2,942,784
Non-current assets:
Investments in subsidiaries and VIE	(4,824,019)	(7,495,627)	(1,176,227)
Total non-current assets	(4,824,019)	(7,495,627)	(1,176,227)
Total assets	8,471,355	11,257,567	1,766,557
LIABILITIES AND SHAREHOLDERS’ DEFICITS
Current liabilities:
Amounts due to subsidiaries	111,539	1,410,584	221,351
Other payables	106,921	419,533	65,834
Total current liabilities	218,460	1,830,117	287,185
Other non-current liabilities	197,091	—	—
Convertible notes	3,001,500	2,931,396	460,000
Payable for SEC settlement	1,174,500	—	—
Payable for equity litigants settlement	1,223,438	1,350,257	211,885
Total non-current liabilities	5,596,529	4,281,653	671,885
Total liabilities	5,814,989	6,111,770	959,070

23.  PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED)

Condensed balance sheets (continued)

	As of December 31,
	2020	2021
	RMB	RMB	US$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Mezzanine equity:
Convertible senior preferred shares (US$0.000002 par value; nil and 307,692,307 shares authorized as of December 31, 2020 and 2021, respectively; nil and 295,384,615 issued and outstanding as of December 31, 2020 and 2021, respectively)	—	1,514,660	237,683
Total Mezzanine equity	—	1,514,660	237,683
Shareholders’ equity:
Class A ordinary shares (US$0.000002 par value; 20,000,000,000 and 19,692,307,693 shares authorized as of December 31, 2020 and 2021, respectively, 1,880,396,244 and 1,950,457,380 issued and outstanding as of December 31, 2020 and 2021, respectively)	20	21	3
Class B ordinary shares (US$0.000002 par value; 5,000,000,000 and 5,000,000,000 shares authorized as of December 31, 2020 and 2021, respectively; 144,778,552 and 144,778,552 issued and outstanding as of December 31, 2020 and 2021, respectively)	2	2	—
Additional paid-in capital	14,745,172	15,040,609	2,360,200
Accumulated deficit	(12,452,882)	(11,768,626)	(1,846,754)
Accumulated other comprehensive income	364,054	359,131	56,355
Total shareholders’ equity	2,656,366	3,631,137	569,804
Total liabilities and shareholders’ equity	8,471,355	11,257,567	1,766,557

23.  PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED)

Condensed statements of comprehensive (loss)/income

	For the year ended
	December 31,
	2019	2020	2021
	RMB	RMB	RMB	US$
Operating(loss)/income
Sales and marketing expenses	—	—	188	30
General and administrative expenses	(25,773)	(109,119)	(85,755)	(13,457)
Losses and expenses related to Fabricated Transactions and restructuring	—	(332,814)	(246,410)	(38,667)
Foreign exchange loss	(29)	—	(138)	(22)
Change in the fair value of warrant liability	(8,322)	—	—	—
Share of (losses)/income from subsidiaries and VIE	(3,164,198)	(2,661,076)	67,203	10,546
Interest income	43,606	21,910	296	46
Other (expense)/income	(3,635)	2,445	(4,784)	(751)
Interest and financing expenses	(82)	(107,258)	(35,490)	(5,569)
Provision for SEC settlement	—	(1,177,074)	1,146,474	179,907
Provision for equity litigants settlement	—	(1,226,119)	(155,314)	(24,372)
Net (loss)/income before income taxes	(3,158,433)	(5,589,105)	686,270	107,691
Income tax expense	—	—	—	—
Net (loss)/income	(3,158,433)	(5,589,105)	686,270	107,691
Accretion to redemption value of convertible redeemable preferred shares	(552,036)	—	—	—
Deemed distribution to a certain holder of Series B Preferred Shares	(2,127)	—	—	—
Net (loss)/income attributable to the Company’s ordinary shareholders and angel shareholders	(3,712,596)	(5,589,105)	686,270	107,691
Net (loss)/income	(3,712,596)	(5,589,105)	686,270	107,691
Other comprehensive income/(loss), net of tax of nil:
Foreign currency translation difference, net of tax of nil	79,433	286,697	(4,923)	(773)
Total Comprehensive (loss)/income	(3,633,163)	(5,302,408)	681,347	106,918

23.  PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED)

Condensed statements of cash flows

	For the year ended
	December 31,
	2019	2020	2021
		RMB	RMB	US$
Net cash provided by operating activities	17,722	130,504	1,281,735	201,133
Net cash (used in)/provided by investing activities	(5,419,820)	(6,802,055)	170,329	26,728
Net cash provided by financing activities	5,604,614	5,806,861	1,446,226	226,944
Net increase/(decrease) in cash and cash equivalents	202,516	(864,690)	2,898,290	454,805
Cash and cash equivalents at beginning of the years	842,175	1,044,691	180,001	28,246
Cash and cash equivalents at end of the years	1,044,691	180,001	3,078,291	483,051

Basis of presentation

Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investments in its subsidiaries and VIE.

The parent company records its investments in its subsidiaries and VIE under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures. Such investments are presented on the condensed balance sheets as “Investments in subsidiaries and the VIE” and their respective profit or loss as “Share of loss in subsidiaries and the VIE” on the condensed statements of comprehensive (loss)/income. Equity method accounting ceases when the carrying amount of the investment, including any additional financial support, in a subsidiary or VIE is reduced to zero unless the parent company has guaranteed obligations of the subsidiary or VIE or is otherwise committed to provide further financial support. If the subsidiary or VIE subsequently reports net income, the parent company shall resume applying the equity method only after its share of that net income equals the share of net loss not recognized during the period the equity method was suspended.

The subsidiaries and VIE did not pay any dividends to the Company for the years presented.