| Fair Value Measurement |
11. | Fair Value Measurement |
In accordance with ASC 820, the Company measures investments in money market funds, available-for-sale debt securities, convertible bonds and equity securities on a recurring basis. The following tables set forth the financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy: | | | | | | | | | Fair Value Measurement | | | Quoted Price in | | Significant | | | | | Active Market | | Other | | Unobservable | | | for Identical | | Observable | | Inputs | | | Assets (Level 1) | | Inputs (Level 2) | | (Level 3) | | | RMB | | RMB | | RMB | | | | | | | | Recurring | | | | | | | As of December 31, 2024: | | | | | | | Cash equivalents: | | | | | | | Money market funds | | 31,335,350 | | — | | — | Short-term investments: | | | | | | | Equity securities | | 44,479,404 | | — | | — | Available-for-sale debt securities | | — | | 6,319,014 | | — | Investments in convertible bonds | | — | | — | | 506,126 | Other non-current assets: | | | | | | | Available-for-sale debt securities | | — | | 23,855,196 | | — | | | 75,814,754 | | 30,174,210 | | 506,126 |
| | | | | | | | | Fair Value Measurement | | | Quoted Price in | | Significant | | | | | Active Market | | Other | | Unobservable | | | for Identical | | Observable | | Inputs | | | Assets (Level 1) | | Inputs (Level 2) | | (Level 3) | | | RMB | | RMB | | RMB | Recurring | | | | | | | As of December 31, 2025: | | | | | | | Cash equivalents: | | | | | | | Money market funds | | 72,681,599 | | — | | — | Short-term investments: | | | | | | | Equity securities | | 66,033,596 | | — | | — | Available-for-sale debt securities | | — | | 19,599,692 | | — | Investments in convertible bonds | | — | | — | | 494,889 | Other non-current assets: | | | | | | | Available-for-sale debt securities | | — | | 32,150,125 | | — | | | 138,715,195 | | 51,749,817 | | 494,889 |
Investments in convertible bonds are classified under Level 3 in the fair value hierarchy, with the fair value estimated based on the third-party appraisal report using the expected credit loss model. Key inputs and parameters include probability of default which is the likelihood that a borrower will default on a credit obligation over a specific time horizon, and loss given default which is an estimate of the loss from a transaction given that a default occurs. Available-for-sale debt securities are classified under Level 2 in the fair value hierarchy, with the fair value determined primarily based on quoted prices of similar assets. The Group values its money market funds and certain equity securities using quoted prices for the underlying securities in active markets, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 1. As of December 31, 2024 and 2025, the Group did not have any assets or liabilities that were measured at fair value on a non-recurring basis and no impairment charge was recorded. 11. | Fair Value Measurement (Continued) |
The followings are financial instruments not measured at fair value in the consolidated balance sheets, but for which the fair value is estimated for disclosure purposes. The fair values of time deposits and held-to-maturity debt investments and loan investments are estimated using prevailing interest rates. The fair values of the convertible bonds are based on broker quotes: | | | | | | | | | Fair Value disclosure | | | Quoted Price in | | Significant | | | | | Active Market | | Other | | Unobservable | | | for Identical | | Observable | | Inputs | | | Assets (Level 1) | | Inputs (Level 2) | | (Level 3) | | | RMB | | RMB | | RMB | As of December 31, 2024: | | | | | | | Short-term investments: | | | | | | | Time deposits and held-to-maturity debt securities | | — | | 210,368,027 | | — | Loan investments | | — | | 12,119,285 | | — | Convertible bonds, current portion | | — | | 5,099,337 | | — | Other non-current assets: | | | | | | | Time deposits and held-to-maturity debt securities | | — | | 57,309,555 | | — | As of December 31, 2025: | | | | | | | Short-term investments: | | | | | | | Time deposits and held-to-maturity debt securities | | — | | 220,422,862 | | — | Loan investments | | — | | 6,856,643 | | — | Other non-current assets: | | | | | | | Time deposits and held-to-maturity debt securities | | — | | 70,296,260 | | — |
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