| FINANCIAL STATEMENTS SCHEDULE I - FINANCIAL INFORMATION OF PARENT COMPANY |
FINANCIAL STATEMENTS SCHEDULE I — FINANCIAL INFORMATION OF PARENT COMPANY CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2023 AND 2024 (Amounts in thousands, except share and per share data and otherwise noted) | | | | | | | | | As of December 31, | | | 2023 | | 2024 | | 2024 | | | RMB | | RMB | | US$ | | | | | | | (Note 2d) | ASSETS | | | | | | | Current assets: | | | | | | | Cash and cash equivalents | | 225,908 | | 646,933 | | 88,629 | Other current assets | | 25,641 | | 2,284 | | 313 | Amounts due from subsidiaries | | 7,012 | | 52,343 | | 7,171 | TOTAL ASSETS | | 258,561 | | 701,560 | | 96,113 | LIABILITIES | | | | | | | Current liabilities: | | | | | | | Amounts due to subsidiaries | | — | | 245,411 | | 33,621 | Amounts due to related parties | | — | | 172 | | 24 | Accruals and other current liabilities | | 8,488 | | 16,721 | | 2,291 | Non-current liabilities: | | | | | | | Deficits of investments in subsidiaries | | 9,881,460 | | 12,177,793 | | 1,668,351 | TOTAL LIABILITIES | | 9,889,948 | | 12,440,097 | | 1,704,287 | SHAREHOLDERS’ DEFICIT | | | | | | | Ordinary shares | | 2,584 | | 3,361 | | 460 | Preferred shares | | 362 | | — | | — | Additional paid-in capital | | 11,213,798 | | 15,757,089 | | 2,158,712 | Treasury shares | | — | | (186,812) | | (25,593) | Accumulated deficits | | (20,865,686) | | (27,289,256) | | (3,738,613) | Accumulated other comprehensive loss | | 17,555 | | (22,919) | | (3,140) | Total shareholders’ deficit | | (9,631,387) | | (11,738,537) | | (1,608,174) | TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT | | 258,561 | | 701,560 | | 96,113 |
FINANCIAL STATEMENTS SCHEDULE I — FINANCIAL INFORMATION OF PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024 (Amounts in thousands, except share and per share data and otherwise noted) | | | | | | | | | | | Year ended December 31, | | | 2022 | | 2023 | | 2024 | | 2024 | | | RMB | | RMB | | RMB | | US$ | | | | | | | | | (Note 2d) | General and administrative | | (1,800) | | (11,237) | | (49,702) | | (6,809) | Loss from operations | | (1,800) | | (11,237) | | (49,702) | | (6,809) | Interest income | | 6,268 | | 25,513 | | 36,417 | | 4,989 | Other (expenses) income, net | | 1,826 | | 54,782 | | 20,084 | | 2,752 | Income before income tax expense | | 6,294 | | 69,058 | | 6,799 | | 932 | Equity in loss of subsidiaries | | (7,940,073) | | (8,416,038) | | (6,430,369) | | (880,957) | Net loss | | (7,933,779) | | (8,346,980) | | (6,423,570) | | (880,025) | Other comprehensive income(loss), net of tax of nil: | | | | | | | | | Foreign currency translation adjustment, net tax of nil | | 14,556 | | 49,765 | | (40,474) | | (5,545) | Total other comprehensive income(loss) | | 14,556 | | 49,765 | | (40,474) | | (5,545) | Total Comprehensive loss | | (7,919,223) | | (8,297,215) | | (6,464,044) | | (885,570) |
FINANCIAL STATEMENTS SCHEDULE I — FINANCIAL INFORMATION OF PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024 (Amounts in thousands, except share and per share data and otherwise noted) | | | | | | | | | | | Year ended December 31, | | | 2022 | | 2023 | | 2024 | | 2024 | | | RMB | | RMB | | RMB | | US$ | | | | | | | | | (Note 2d) | Cash flows from operating activities | | | | | | | | | Net loss | | (7,933,779) | | (8,346,980) | | (6,423,570) | | (880,025) | Loss from equity method investments | | 7,940,073 | | 8,416,038 | | 6,430,369 | | 880,957 | Foreign exchange loss (income) | | (50,875) | | — | | — | | — | Changes in operating assets and liabilities net of effect of acquisitions: | | | | | | | | | Amounts due from subsidiaries | | (5,803) | | 5,803 | | (45,331) | | (6,210) | Other current assets | | (3,562) | | (22,079) | | 23,357 | | 3,200 | Amounts due to subsidiaries | | — | | — | | 58,599 | | 8,028 | Amounts due to related parties | | — | | — | | 172 | | 24 | Accrued expenses and other current liabilities | | 1,241 | | 7,247 | | 8,233 | | 1,128 | Net cash provided by (used in) operating activities | | (52,705) | | 60,029 | | 51,829 | | 7,102 | Cash flows from investing activities | | | | | | | | | Loans and advances to subsidiaries | | (571,259) | | (9,438) | | — | | — | Repayments of loans and advances to subsidiaries | | — | | 633,526 | | — | | — | Investments in subsidiaries | | (2,540,000) | | (5,861,813) | | (3,101,648) | | (424,925) | Net cash used in investing activities | | (3,111,259) | | (5,237,725) | | (3,101,648) | | (424,925) | Cash flows from financing activities | | | | | | | | | Proceeds from initial public offering (net of issuance costs of RMB 79,138 for the year ended December 31, 2024) | | — | | — | | 3,465,344 | | 474,750 | Proceeds from issuance of preferred shares (net of issuance costs of RMB1,690, RMB2,134 and nil for the years ended December 31, 2022, 2023 and 2024, respectively) | | 1,268,360 | | 5,373,044 | | — | | — | Net cash provided by financing activities | | 1,268,360 | | 5,373,044 | | 3,465,344 | | 474,750 | Net increase (decrease) in cash and cash equivalents | | (1,895,604) | | 195,348 | | 415,525 | | 56,927 | Cash, cash equivalents at beginning of year | | 1,907,283 | | 64,444 | | 225,908 | | 30,949 | Effect of exchange rate changes on cash and cash equivalents | | 52,765 | | (33,884) | | 5,500 | | 753 | Cash, cash equivalents at end of year | | 64,444 | | 225,908 | | 646,933 | | 88,629 | Supplementary disclosure of non-cash financing activities: | | | | | | | | | Amounts due to subsidiaries in connection with the repurchased ordinary shares for tax purpose (see note 17) | | — | | — | | 186,812 | | 25,593 |
NOTES TO SCHEDULE I 1) | Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited combined and consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. |
2) | The condensed financial information has been prepared using the same accounting policies as set out in the combined and consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. For the parent company, 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 “Deficit of investment in subsidiaries” and the subsidiaries’ profit or loss as “Equity in income(loss) of subsidiaries” on the Condensed Statements of Operations and Comprehensive Loss. Ordinarily under the equity, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses. |
3) | Translations of balances in the Additional Financial Information of Parent Company-Financial Statements Schedule I from RMB into US$ as of and for the year ended December 31, 2024 are solely for the convenience of the readers and were calculated at the rate of US$1.00 = RMB7.2993, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2024. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2024, or at any other rate. |
4) | As of December 31, 2022, 2023 and 2024, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company. |
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