| PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION |
29. | PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION |
The Company performed a test on the restricted net assets of its consolidated subsidiaries 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 information for the Company only. The subsidiaries did not pay any dividends to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, or guarantees as of December 31, 2025. | (a) | Condensed Balance Sheets |
| | | | | | | As of December 31, | | | 2025 | | 2024 | | | US$ | | US$ | ASSETS | | | | | Current assets | | | | | Cash | | 301 | | 963 | Restricted cash | | — | | 338 | Amounts due from subsidiaries | | 162,128 | | 95,693 | Prepayments and other current assets – related parties, net | | 18,052 | | 15,684 | Prepayments and other current assets – third parties, net | | 5,758 | | 6,362 | Total current assets | | 186,239 | | 119,040 | Non-current assets | | | | | Investment securities – related parties | | 1,811 | | 2,221 | Securities pledged to an investor | | — | | 315,796 | Total non-current assets | | 1,811 | | 318,017 | Total assets | | 188,050 | | 437,057 | LIABILITIES AND SHAREHOLDERS’ DEFICITS | | | | | Current liabilities | | | | | Convertible notes – related parties | | 126,203 | | 113,910 | Share buyback forward liabilities | | — | | 117,059 | Amounts due to subsidiaries | | — | | 1,140 | Accrued expenses and other current liabilities | | 9,313 | | 16,497 | Put option liabilities | | — | | 309,115 | Short‑term borrowings – related parties | | 151,664 | | — | Total current liabilities | | 287,180 | | 557,721 | Non-current liabilities | | | | | Share of losses in excess of investments in subsidiaries | | 1,134,606 | | 728,858 | Convertible notes – third parties | | 10,787 | | — | Convertible notes – related parties | | 77,175 | | — | Warrant liabilities | | 800 | | 3,340 | Total non-current liabilities | | 1,223,368 | | 732,198 | Total liabilities | | 1,510,548 | | 1,289,919 | | | | | | Shareholders’ deficit | | | | | Ordinary shares | | 7 | | 7 | Treasury stock | | (138,397) | | — | Additional paid-in capital | | 1,933,992 | | 1,785,664 | Accumulated other comprehensive income | | 39,818 | | 55,165 | Accumulated deficit | | (3,157,918) | | (2,693,698) | Total shareholders’ deficit | | (1,322,498) | | (852,862) | Total liabilities and shareholders’ deficit | | 188,050 | | 437,057 |
| (b) | Condensed Statements of Comprehensive Loss |
| | | | | | | | | Year ended December 31, | | | 2025 | | 2024 | | 2023 | | | US$ | | US$ | | US$ | Total operating expenses | | (4,816) | | (24,322) | | (2,983) | Interest income | | 4,891 | | 4,725 | | 6,979 | Interest expenses | | (4,172) | | (12,876) | | — | Investment income (loss), net | | 10,685 | | 13,320 | | (5,084) | Foreign currency exchange gains (losses), net | | 6,010 | | 614 | | (171) | Changes in fair values of liabilities, excluding impact of instrument-specific credit risk | | (25,778) | | (285,322) | | (3,124) | Share of losses from subsidiaries and former consolidated VIEs | | (451,040) | | (801,064) | | (737,618) | Loss before income taxes | | (464,220) | | (1,104,925) | | (742,001) | Income tax expense | | — | | — | | — | Net loss | | (464,220) | | (1,104,925) | | (742,001) | Other comprehensive loss: | | | | | | | Fair value changes of liabilities due to instrument-specific credit risk, net of nil income taxes | | 13,875 | | 13,547 | | (8,650) | Foreign currency translation adjustment, net of nil income taxes | | (29,222) | | 16,351 | | 16,210 | Total comprehensive loss | | (479,567) | | (1,075,027) | | (734,441) |
| (c) | Condensed Statements of Cash Flows |
| | | | | | | | | Year ended December 31, | | | 2025 | | 2024 | | 2023 | | | US$ | | US$ | | US$ | Net cash (used in) generated from operating activities | | (3,584) | | (45,034) | | 3,127 | Net cash generated from (used in) investing activities | | 270,001 | | (1,246,477) | | (347,697) | Net cash (used in) generated from financing activities | | (267,454) | | 1,260,592 | | 27,163 | Effect of exchange rate changes on cash and restricted cash | | 37 | | (1,668) | | (1,812) | Net decrease in cash and restricted cash | | (1,000) | | (32,587) | | (319,219) | Cash and restricted cash at beginning of the year | | 1,301 | | 33,888 | | 353,107 | Cash and restricted cash at end of the year | | 301 | | 1,301 | | 33,888 |
Basis of presentation The Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries and former consolidated VIEs. For the company only financial information, the Company records its investments in subsidiaries 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 “Share of losses in excess of investments in subsidiaries” and shares in the subsidiaries and former consolidated VIE’s and VIE’s subsidiaries’ loss are presented as “Share of losses from subsidiaries and former consolidated VIEs” on the condensed statements of comprehensive loss.
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