| Condensed Financial Information of the Company |
21. | Condensed Financial Information of the Company |
The following is the condensed financial information of the Company on a parent company only basis: | | | | | | | | | As of December 31, | | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | US$ | ASSETS | | | | | | | Current assets | | | | | | | Cash, cash equivalents and short-term investments | | 10,242 | | 45,987 | | 6,576 | Others | | 73 | | 93 | | 13 | Total current assets | | 10,315 | | 46,080 | | 6,589 | | | | | | | | Non-current assets | | | | | | | Investments in subsidiaries, the VIE and subsidiaries of the VIE | | 318,641,783 | | 413,387,814 | | 59,113,671 | Total non-current assets | | 318,641,783 | | 413,387,814 | | 59,113,671 | Total assets | | 318,652,098 | | 413,433,894 | | 59,120,260 | | | | | | | | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | Current liabilities | | | | | | | Convertible bonds, current portion | | 5,309,597 | | — | | — | Others | | 29,377 | | 48,738 | | 6,969 | Total current liabilities | | 5,338,974 | | 48,738 | | 6,969 | | | | | | | | Non-current liabilities | | | | | | | Total non-current liabilities | | — | | — | | — | Total liabilities | | 5,338,974 | | 48,738 | | 6,969 | | | | | | | | Shareholders’ equity | | | | | | | Class A ordinary shares (US$0.000005 par value; 77,300,000,000 shares authorized; 5,568,585,848 and 5,693,585,848 shares issued and outstanding as of December 31, 2024 and 2025, respectively) | | 180 | | 182 | | 26 | Additional paid-in capital | | 117,829,308 | | 125,767,661 | | 17,984,536 | Statutory reserves | | 237,680 | | 1,338,261 | | 191,369 | Accumulated other comprehensive income | | 7,824,545 | | 2,115,683 | | 302,539 | Retained earnings | | 187,421,411 | | 284,163,369 | | 40,634,821 | Total shareholders’ equity | | 313,313,124 | | 413,385,156 | | 59,113,291 | Total liabilities and shareholders’ equity | | 318,652,098 | | 413,433,894 | | 59,120,260 |
21. | Condensed Financial Information of the Company (Continued) |
| | | | | | | | | | | For the years ended December 31, | | | 2023 | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | RMB | | US$ | Total costs and operating expenses | | (156,391) | | (47,546) | | (154,054) | | (22,030) | Operating loss | | (156,391) | | (47,546) | | (154,054) | | (22,030) | | | | | | | | | | Interest income | | 6,269 | | 375 | | 685 | | 98 | Interest expenses | | (43,987) | | — | | — | | — | Other income/(loss), net | | 107,664 | | (19) | | 152,705 | | 21,837 | Share of results from subsidiaries, the VIE and subsidiaries of the VIE | | 60,112,989 | | 112,481,702 | | 97,843,203 | | 13,991,392 | Profit before income tax | | 60,026,544 | | 112,434,512 | | 97,842,539 | | 13,991,297 | Income tax expenses | | — | | — | | — | | — | Net income | | 60,026,544 | | 112,434,512 | | 97,842,539 | | 13,991,297 | | | | | | | | | | Other comprehensive income | | | | | | | | | Foreign currency translation difference, net of tax of nil | | 1,332,984 | | 2,605,982 | | (5,476,543) | | (783,135) | Unrealized gains/(losses) on available-for-sale debt securities, net of tax | | 68,538 | | 494,803 | | (232,319) | | (33,221) | Total other comprehensive income/(loss) | | 1,401,522 | | 3,100,785 | | (5,708,862) | | (816,356) | Comprehensive income | | 61,428,066 | | 115,535,297 | | 92,133,677 | | 13,174,941 |
| | | | | | | | | | | For the years ended December 31, | | | 2023 | | 2024 | | 2025 | | 2025 | | | RMB | | RMB | | RMB | | US$ | Net cash generated from/(used in) operating activities | | 71,615 | | (46,208) | | 99,966 | | 14,295 | | | | | | | | | | CASH FLOW FROM INVESTING ACTIVITIES | | | | | | | | | Cash received from subsidiaries, the VIE and subsidiaries of the VIE, net | | 8,816,124 | | 51,909 | | 5,175,917 | | 740,146 | Others | | — | | (7,363) | | 7,246 | | 1,036 | Net cash generated from investing activities | | 8,816,124 | | 44,546 | | 5,183,163 | | 741,182 | | | | | | | | | | CASH FLOW FROM FINANCING ACTIVITIES | | | | | | | | | Repayment or repurchase of convertible bonds | | (8,968,817) | | (91) | | (5,228,716) | | (747,696) | Others | | 8,191 | | 1,255 | | 1,363 | | 194 | Net cash (used in)/generated from financing activities | | (8,960,626) | | 1,164 | | (5,227,353) | | (747,502) | | | | | | | | | | Exchange rate effect on cash, cash equivalents and restricted cash | | 14,450 | | 231 | | (12,638) | | (1,806) | (Decrease)/increase in cash, cash equivalents and restricted cash | | (58,437) | | (267) | | 43,138 | | 6,169 | Cash, cash equivalents and restricted cash at beginning of the year | | 61,553 | | 3,116 | | 2,849 | | 407 | Cash, cash equivalents and restricted cash at end of the year | | 3,116 | | 2,849 | | 45,987 | | 6,576 |
21. | Condensed Financial Information of the Company (Continued) |
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, the VIE and subsidiaries of the VIE. The parent company records its investments in its subsidiaries, the VIE and its 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 ‘‘Investments in subsidiaries, the VIE and subsidiaries of the VIE’’ and their respective income as ‘‘Share of results from subsidiaries, the VIE and subsidiaries of 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 subsidiaries, the VIE and subsidiaries of the VIE is reduced to zero unless the parent company has guaranteed obligations of the subsidiaries, the VIE and subsidiaries of the VIE or is otherwise committed to provide further financial support. If the subsidiaries, the VIE and subsidiaries of the VIE subsequently reports net income, the parent company shall resume applying the equity method only after its share of that net income equals the share of net income/(loss) not recognized during the period the equity method was suspended. The parent company’s condensed financial statements should be read in conjunction with the Company’s consolidated financial statements.
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