Discontinued Operations

12 Months Ended

Dec. 31, 2025

Discontinued Operations [Abstract]

Discontinued operations

4.

Discontinued operations

On October 13, 2025, the Company held an extraordinary general meeting of the holders of the Company’s ordinary shares at which a resolution was approved authorizing the disposal of Long Ye International Limited, a Cayman Islands company (“Long Ye”), Long Ye Information Technology Limited, a Hong Kong company (“Long Ye HK”), Beijing Sangu Maolu Information Technology Co., Ltd., a PRC company (“Sangu Maolu”), TuanChe Information Limited, a Hong Kong company, (“Tuanche HK”), TuanYuan Internet Technology (Beijing) Co., Ltd., a PRC company (“TuanYuan”), TuanChe Group Inc., a Cayman Islands company, (“Tuanche Cayman”), TuanChe Information Group Limited, a Hong Kong company (“Tuanche Info”), Chema Technology (Beijing) Co., Ltd., a PRC company (“Chema”,together with Long Ye, Long Ye HK, Beijing Sangu Maolu, Tuanche HK, TuanYuan, Tuanche Cayman and Tuanche Info, the “Targets”), for a nominal cash consideration of US$1.

The Company’s primary business is operating an integrated automotive marketplace in China. The disposed entities (e.g., TuanChe Internet Information Service (Beijing) Co., Ltd., Sangu Maolu, Chema Technology) are the primary vehicles through which the Company conducted its main operations, including organizing auto shows and providing marketing services.

As of October 31, 2025, the Company ceased to participate in the operations and management of the disposed business.

In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and non-current liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes benefit, shall be reported as a component of net loss separate from the net loss of continuing operations in accordance with ASC 205-20-45.Assets and liabilities related to the Discontinued Business to be transferred were reclassified as assets/liabilities of discontinued operations as of December 31, 2024, while results of operations related to the Discontinued Business, including comparatives, were reported as gain from discontinued operations for the year ended December 31, 2023, 2024 and 2025.

Gain on disposal

		Year ended December 31, 2025
		RMB
Total net liabilities of the Disposal Group			230,750
Add: Writes-off of net amounts due from disposed subsidiaries - loss			(125,016	)
Less: disposal proceeds			—
Gain on disposal before reclassification of cumulative foreign currency translation differences of the Disposal Group to profit or loss			105,734
Reclassification of cumulative foreign currency translation losses of the Disposal Group to profit or loss			(56,748	)
Gain on disposal			48,986

Results of discontinued operations:

						Year ended December 31,				Ten months ended October 31,
		2023				2024				2025
		RMB				RMB				RMB
Net revenues			162,367				49,176				25,571
Cost of revenues			(68,942	)			(15,596	)			(6,332	)
Gross profit			93,425				33,580				19,239
Operating expenses:
Selling and marketing expenses			(157,004	)			(54,476	)			(42,489	)
General and administrative expenses			(20,126	)			(15,530	)			(13,043	)
Research and development expenses			(11,267	)			(11,890	)			(1,551	)
Impairment of long-lived assets			(1,515	)			(4,048	)			—
Total operating expenses			(189,912	)			(85,944	)			(57,083	)
Loss from discontinued operations			(96,487	)			(52,364	)			(37,844	)
Other income/(expenses):
Interest expenses, net			(289	)			(999	)			(1,935	)
Gain/(loss) from equity method investments			181				532				(57	)
Impairment of goodwill							(45,561	)			—
Other income, net			16,784				4,673				(429	)
Loss from discontinued operations before income taxes			(79,811	)			(93,719	)			(40,265	)
Income tax benefit			—				—				—
Net loss from discontinued operations			(79,811	)			(93,719	)			(40,265	)

Assets and liabilities of the discontinued operations:

		December 31, 2024				October 31, 2025
		RMB				RMB
ASSETS
Current assets:
Cash and cash equivalents			1,697				904
Restricted cash			4,044				4,000
Accounts and notes receivable, net			12,756				9,383
Prepayment and other current assets, net			14,951				26,373
Total current assets			33,448				40,660
Non-current assets:
Long-term investments			6,096				6,039
Total non-current assets			6,096				6,039
Total assets			39,544				46,699
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable			13,875				2,807
Advance from customers			8,874				2,035
Salary and welfare benefits payable			4,707				15,921
Short-term borrowings			31,734				26,284
Other taxes payable			1,012				751
Current portion of deferred revenue			798				—
Short-term operating lease liabilities			3,378				5,070
Payables due to related parties			10,354				—
Other current liabilities			17,459				214,581
Total current liabilities			92,191				267,449
Long-term borrowings			10,000				10,000
Long-term operating lease liabilities			3,362				—
Total non-current liabilities			13,362				10,000
Total liabilities			105,553				277,449

Cash flows of the discontinued operations:

		For the year ended December 31,								For the ten months ended October 31,
		2023				2024				2025
		RMB				RMB				RMB
Net cash used in discontinued operations
Net cash( used in) /generated from operating activities			(78,967	)			(29,204	)			534
Net cash generated from/(used in) investing activities			—				(19	)			—
Net cash generated from/(used in) financing activities			13,972				23,047				(1,450	)