v3.25.0.1
Fair Value Measurement
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Fair Value Measurement [Abstract]    
Fair Value Measurement

15. Fair Value Measurement

 

   For the year ended   For the six months ended 
   December 31,
 2023		   June 30,
 2024		 
   RMB   RMB   US$ 
Warrant liability:            
Level 1 Inputs   
-
    
-
    
-
 
Level 2 Inputs   
-
    
-
    
-
 
Level 3 Inputs   3,952    1,632    225 
Balance at fair value   3,952    1,632    225 

 

   As of
December 31,
2023		   As of
June 30,
2024		 
Expiration of warrant (years)   3.9    3.4 
Fair market value per share (US$)*   3.00    1.79 
Exercise price (US$)*   41.25    41.25 
Risk-free rate   3.92%   4.48%
Dividend yield   
-
    
-
 
Standard derivation in the value of stock   132.8%   132.0%

 

*Effective on January 26, 2024, The Group changed the ratio of the ADSs to Class A ordinary shares from the then ADS ratio of one ADS to sixteen (16) Class A ordinary shares to a new ADS ratio of one ADS representing two hundred and forty (240) Class A ordinary shares. Fair market value per share and exercise price as of December 31, 2023 have been retroactively adjusted to reflect the change in ratio for all periods presented.
   For the six 
months ended
June 30, 
2024		 
   RMB 
Fair value of warrants at beginning of the period (Level 3)   3,952 
Issuances   
-
 
Change in fair value   (2,338)
Effect of exchange rate changes   18 
Fair value of warrants at end of the period (Level 3)   1,632 

22. Fair Value Measurement

 

Assets measured at fair value on a nonrecurring basis

 

The Company measured its property, equipment and software, equity investments, intangible assets and goodwill at fair value on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable.

 

Assets and liabilities measured at fair value on a recurring basis

 

The Company measured its warrant at fair value on a recurring basis. As the Company’s warrant is not traded in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of warrant. This instrument are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended December 31, 2023.

 

The following table presents the fair value hierarchy for the Group’s liabilities that are measured and recorded at fair value as of December 31, 2022 and 2023:

 

   For the year ended December 31, 
   2022   2023 
   Level 1
Inputs		   Level 2
Inputs		   Level 3
Inputs		   Level 1
Inputs		   Level 2
Inputs		   Level 3
Inputs		   Balance at
fair value		 
   RMB   RMB   RMB   RMB   RMB   RMB   US$ 
Warrant liability   
-
    
-
    24,376    
-
    
-
    3,952    557 

 

The Company adopted Black Scholes model to assess the warrant’s fair value. Management is responsible for determining the fair value and assessing a number of factors. The valuation involves complex and subjective judgements as well as the Company’s best estimates on the valuation date. Key inputs related to the Black Scholes model for the valuation of the fair value of warrants are as follows:

 

   As of 
November 23,
2022		   As of 
December 31, 
2022		   As of
December 31,
2023		 
Expiration of warrant (years)   5    4.9          3.9 
Fair market value per share (US$)   1.17    0.84    0.20 
Exercise price (US$)   2.75    2.75    2.75 
Risk-free rate   3.96%   4.05%   3.92%
Dividend yield   
-
    
-
    
-
 
Standard derivation in the value of stock   132.3%   131.2%   132.8%

 

The following table summarizes the activities related to fair value of the warrants:

 

   For the Year Ended
December 31,		 
   2022   2023 
   RMB   RMB 
Fair value of warrants at beginning of the year (Level 3)   
-
    24,376 
Issuances   36,838    
-
 
Change in fair value   (11,219)   (20,732)
Effect of exchange rate changes   (1,243)   308 
Fair value of warrants at end of the year (Level 3)   24,376    3,952