| CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY |
21. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | | | | | | | | | As of December 31, | | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | US$ | | | (in thousands, except for number of shares and per share data) | ASSETS | | | | | | | Current assets | | | | | | | Cash and cash equivalents | | 155,828 | | 30,786 | | 4,402 | Amounts due from subsidiaries | | 253,441 | | 349,029 | | 49,910 | Prepayments and other current assets | | 4,266 | | 2,932 | | 420 | Total current assets | | 413,535 | | 382,747 | | 54,732 | Non-current assets | | | | | | | Investments in subsidiaries, the VIE and VIE’s subsidiaries | | 555,621 | | 654,883 | | 93,647 | Other non-current assets | | 1,229 | | — | | — | Total non-current assets | | 556,850 | | 654,883 | | 93,647 | Total assets | | 970,385 | | 1,037,630 | | 148,379 | LIABILITIES | | | | | | | Current liabilities | | | | | | | Amounts due to subsidiaries and the VIE | | 4,148 | | 40,332 | | 5,767 | Accrued expenses and other current liabilities | | 3,228 | | 2,128 | | 304 | Dividend payable | | 2,164 | | — | | — | Total current liabilities | | 9,540 | | 42,460 | | 6,071 | Total liabilities | | 9,540 | | 42,460 | | 6,071 | SHAREHOLDERS’ EQUITY | | | | | | | Ordinary shares (par value of US$0.0001 per share, 700,000,000 Class A shares authorized as of December 31, 2024 and December 31, 2025; 125,122,382 Class A shares issued and 116,084,207 outstanding as of December 31, 2024; 125,122,382 Class A shares issued and 111,541,887 outstanding as of December 31, 2025; 200,000,000 Class B shares authorized, 144,000,000 Class B ordinary shares issued and outstanding as of December 31, 2024 and December 31, 2025; 100,000,000 shares (undesignated) authorized, nil shares (undesignated) issued and outstanding as of December 31, 2024 and December 31, 2025) | | 185 | | 186 | | 27 | Additional paid-in capital | | 996,657 | | 960,641 | | 137,370 | Treasury stock | | (26,296) | | (43,483) | | (6,218) | Accumulated other comprehensive income | | 24,009 | | 16,134 | | 2,307 | Retained earnings (accumulated deficit) | | (33,710) | | 61,692 | | 8,822 | Total shareholders’ equity | | 960,845 | | 995,170 | | 142,308 | Total liabilities and shareholders’ equity | | 970,385 | | 1,037,630 | | 148,379 |
21. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Continued) | | | | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | RMB | | US$ | | | (in thousands) | Operating expenses | | | | | | | | | General and administrative expenses | | (16,011) | | (11,449) | | (8,094) | | (1,157) | Total operating expenses | | (16,011) | | (11,449) | | (8,094) | | (1,157) | Operating loss | | (16,011) | | (11,449) | | (8,094) | | (1,157) | Share of income from subsidiaries, the VIE and VIE’s subsidiaries | | 190,880 | | 102,725 | | 98,583 | | 14,097 | Other income, net | | 6,038 | | 7,313 | | 4,913 | | 703 | Income before income taxes | | 180,907 | | 98,589 | | 95,402 | | 13,643 | Income tax expenses | | — | | — | | — | | — | Net income | | 180,907 | | 98,589 | | 95,402 | | 13,643 | Total comprehensive income | | 188,365 | | 104,643 | | 87,527 | | 12,517 | | | | | | | | | | Net cash used in operating activities | | (15,968) | | (2,663) | | (482) | | (69) | Net cash provided by (used in) investing activities | | (25,483) | | 62,597 | | (67,149) | | (9,602) | Net cash used in financing activities | | (9,448) | | (44,853) | | (56,088) | | (8,021) | Effect of exchange rate changes on cash and cash equivalents | | 2,648 | | 2,173 | | (1,323) | | (189) | Net change in cash and cash equivalents | | (48,251) | | 17,254 | | (125,042) | | (17,881) | Cash and cash equivalents at the beginning of the year | | 186,825 | | 138,574 | | 155,828 | | 22,283 | Cash and cash equivalents at the end of the year | | 138,574 | | 155,828 | | 30,786 | | 4,402 |
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, the VIE and VIE’s subsidiaries. The parent company records its investments in its subsidiaries, the VIE and VIE’s subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures. Under the equity method of accounting, the Company shall adjust the carrying amount of the investments for its share of the subsidiaries’ and other equity investees’ cumulative losses until the investment balance reaches zero, unless it is contractually obligated to continue to pick up the subsidiaries’ and other equity investees’ losses. The Company confirmed its unlimited financial support to its subsidiaries for their operations. Consequently, the Company recognized its investments in excess of its share of cumulative losses in “Investments in subsidiaries, the VIE and VIE’s subsidiaries” on the condensed balance sheets, and the respective share in income (loss) in “Share of income from subsidiaries, the VIE and VIE’s subsidiaries” on the condensed statements of comprehensive income. The subsidiaries did not pay any dividends to the Company for the periods presented. The parent company’s condensed financial statements should be read in conjunction with the Group’s consolidated financial statements.
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