| PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION |
21. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets | | | | | | | | | As of December 31, | | | 2024 | | 2025 | | | RMB | | RMB | | US$ | ASSETS | | | | | | | Current assets: | | | | | | | Cash and cash equivalents | | 639,488 | | 16,590 | | 2,368 | Amounts due from subsidiaries | | 12,233,657 | | 13,565,320 | | 1,936,160 | Prepaid expenses and other current assets | | 21,153 | | 15,844 | | 2,261 | Term deposit-current | | 656,820 | | 210,189 | | 30,000 | Total current assets | | 13,551,118 | | 13,807,943 | | 1,970,789 | | | | | | | | Non-current assets: | | | | | | | Investments in subsidiaries and VIE | | (38,667) | | 4,616,572 | | 658,917 | Total non-current assets | | (38,667) | | 4,616,572 | | 658,917 | | | | | | | | Total assets | | 13,512,451 | | 18,424,515 | | 2,629,706 | | | | | | | | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | Current liabilities: | | | | | | | Amounts due to subsidiaries | | 310,414 | | 1,128,817 | | 161,115 | Accrued expenses and other current liabilities | | 9,757 | | 6,452 | | 921 | Payable for equity litigants settlement | | 119,560 | | 149,887 | | 21,393 | Total current liabilities | | 439,731 | | 1,285,156 | | 183,429 | Total liabilities | | 439,731 | | 1,285,156 | | 183,429 |
21. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed balance sheets (continued) | | | | | | | | | As of December 31, | | | 2024 | | 2025 | | | RMB | | RMB | | US$ | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | Mezzanine equity: | | | | | | | Convertible senior preferred shares (US$0.000002 par value; 307,692,307 and 307,692,307 shares authorized as of December 31, 2024 and 2025, respectively; 295,384,619 and 295,384,619 issued and outstanding as of December 31, 2024 and 2025, respectively) | | 1,514,660 | | 1,514,660 | | 216,185 | Total Mezzanine equity | | 1,514,660 | | 1,514,660 | | 216,185 | | | | | | | | Shareholders’ equity: | | | | | | | Class A ordinary shares (US$0.000002 par value; 19,692,307,693 and 19,692,307,693 shares authorized as of December 31, 2024 and 2025, respectively, 2,124,695,348 and 2,158,141,800 issued and outstanding as of December 31, 2024 and 2025, respectively) | | 24 | | 24 | | 3 | Class B ordinary shares (US$0.000002 par value; 5,000,000,000 and 5,000,000,000 shares authorized as of December 31, 2024 and 2025, respectively; 144,778,552 and 136,172,004 issued and outstanding as of December 31, 2024 and 2025, respectively) | | 2 | | 2 | | — | Additional paid-in capital | | 16,705,240 | | 17,278,391 | | 2,466,122 | Accumulated deficits | | (5,585,742) | | (1,985,360) | | (283,368) | Accumulated other comprehensive income | | 438,536 | | 331,642 | | 47,335 | Total Company’s ordinary shareholders’ equity | | 11,558,060 | | 15,624,699 | | 2,230,092 | | | | | | | | Total liabilities, mezzanine equity and shareholders’ equity | | 13,512,451 | | 18,424,515 | | 2,629,706 |
21. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of comprehensive income | | | | | | | | | | | For the year ended | | | December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | US$ | | | | | | | | | | General and administrative expenses | | (46,722) | | (33,002) | | (45,034) | | (6,428) | Sales and marketing expenses | | (566) | | (309) | | (586) | | (84) | Losses and expenses related to Fabricated Transactions and Restructuring | | 32,422 | | 149,946 | | (8,608) | | (1,229) | Foreign exchange gain/(loss), net | | 3,320 | | 6,007 | | (22,954) | | (3,276) | Share of income from subsidiaries and VIE | | 2,945,299 | | 2,833,727 | | 3,684,441 | | 525,875 | Interest and investment income | | 2,476 | | 17,915 | | 38,067 | | 5,433 | Other expenses, net | | — | | (18,575) | | — | | — | Interest and financing expenses | | — | | — | | (9,618) | | (1,373) | Provision for equity litigants settlement | | (92,192) | | — | | (35,326) | | (5,042) | Income before income taxes | | 2,844,037 | | 2,955,709 | | 3,600,382 | | 513,876 | Net income | | 2,844,037 | | 2,955,709 | | 3,600,382 | | 513,876 | Net income attributable to the Company’s ordinary shareholders | | 2,844,037 | | 2,955,709 | | 3,600,382 | | 513,876 | | | | | | | | | | Net income | | 2,844,037 | | 2,955,709 | | 3,600,382 | | 513,876 | Other comprehensive income/(loss), net of tax of nil: | | | | | | | | | Foreign currency translation difference, net of tax of nil | | (360) | | 41,592 | | (106,894) | | (15,257) | Total comprehensive income | | 2,843,677 | | 2,997,301 | | 3,493,488 | | 498,619 |
21. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of cash flows | | | | | | | | | | | For the year ended | | | December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | US$ | Net cash provided by/(used in) operating activities | | (184,240) | | 1,259,823 | | (1,045,431) | | (149,213) | Net cash provided by/(used in) investing activities | | — | | (654,185) | | 428,609 | | 61,175 | Net cash provided by/(used in) financing activities | | — | | — | | — | | — | Effect of foreign exchange rate changes on cash and cash equivalents | | — | | 3,098 | | (6,076) | | (867) | Net (decrease)/increase in cash and cash equivalents | | (184,240) | | 608,736 | | (622,898) | | (88,905) | Cash and cash equivalents at beginning of years | | 214,992 | | 30,752 | | 639,488 | | 91,273 | Cash and cash equivalents at end of years | | 30,752 | | 639,488 | | 16,590 | | 2,368 |
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 income in subsidiaries and the VIE” on the condensed statements of comprehensive 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. The subsidiaries and Former VIE did not pay any dividends to the Company for the years presented.
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