v3.26.1
Fair Value Measurement
 12 Months Ended
Dec. 31, 2025
Fair Value Measurement [Abstract]  
Fair Value Measurement
17.Fair Value Measurement

 

Assets measured at fair value on a nonrecurring basis

 

The Company measured its property, equipment and software, equity investments, intangible assets and goodwill at fair value on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable.

 

Assets and liabilities measured at fair value on a recurring basis

 

The Company measured its warrant at fair value on a recurring basis. As the Company’s warrant is not traded in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of warrant. This instrument is categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended December 31, 2025.

 

The following table presents the fair value hierarchy for the Group’s liabilities that are measured and recorded at fair value as of December 31, 2024 and 2025:

 

    For the year ended December 31,  
    2024     2025  
    Level 1
Inputs		     Level 2
Inputs		     Level 3
Inputs		     Level 1
Inputs		     Level 2
Inputs		     Level 3
Inputs		     Balance at fair value  
    RMB     RMB     RMB     RMB     RMB     RMB     US$  
Warrant liability     —       —       68,556       —       —       24,377       3,486  
                                                         

On November 23, 2022, October 28, 2024, the Group issued 5,454,546 and 761,719 ADSs warrants, respectively. The warrants entitle the holder to purchase one ADS of our common stock at an exercise price equal to US$2.75 and US$1.45 per ADS at any time on or after their issuance date and on or prior to the close of business 5 years after the issuance date (the “Termination Date”). The Group determined that these warrants are free standing financial instruments that are legally detachable and separately exercisable from the common stock included in the public share offering. The Group evaluates the warrants under Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity. Warrants recorded as liabilities are recorded at their fair value and remeasured on each reporting date with change in estimated fair value of warrant liability in the consolidated statement of operations and comprehensive loss.

 

On October 24, 2024, the Group pursuant to Section 3(b) of the ADS Warrant, the number of ADSs issued on November 23, 2022 has been adjusted from 5,454,546 to10,349,111 ADSs warrants with US$1.45 strike. On February 28, 2025,the Group pursuant to Section 3(a) and 3(c) of the ADS Warrant, the number of ADSs issued on November 23, 2022 has been adjusted from 10,349,111 to19,957,214 ADSs warrants with US$0.75161 strike. On September 11, 2025, the warrants issued on November 23, 2022 had 2,946,220 ADSs warrants exercised.

 

 On February 28, 2025,the Group pursuant to Section 3(a) and 3(c) of the ADS Warrant, the number of ADSs issued on October 28, 2024 has been adjusted from 761,719 to1,468,898 ADSs warrants with US$0.75161 strike.

 

The Company adopted Black Scholes model to assess the warrant’s fair value. Management is responsible for determining the fair value and assessing a number of factors. The valuation involves complex and subjective judgements as well as the Company’s best estimates on the valuation date. Key inputs related to the Black Scholes model for the valuation of the fair value of warrants are as follows:

 

   Issuance date
November 23,
2022		   As of
December 31,
2023		   As of
December 31,
2024		   As of
December 31,
2025		 
Expiration of warrant (years)   5    3.9    2.9    1.9 
Stock price per ADS (US$)   1.17    0.20    1.13    0.35 
Exercise price per ADS (US$)   2.75    2.75    1.45    0.75 
Risk-free rate   3.96%   3.92%   4.27%   3.73%
Dividend yield   
—
    
—
    
—
    
—
 
Standard derivation in the value of stock   132.3%   132.8%   140.7%   135.7%
Calculated fair value per ADS (US$)   0.95    0.10    0.85    0.18 
   Issuance date
October 28,
2024		   As of
December 31,
2024		   As of
December 31,
2025		 
Expiration of warrant (years)   5    4.8    3.8 
Stock price per ADS (US$)   1.48    1.13    0.35 
Exercise price per ADS (US$)   1.45    1.45    0.75 
Risk-free rate   4.11%   4.37%   3.73%
Dividend yield   
—
    
—
    
—
 
Standard derivation in the value of stock   125.4%   127.8%   135.7%
Calculated fair value per ADS (US$)   1.27    0.95    0.26 

 

The warrants outstanding and fair values at each of the respective valuation dates of the warrants issued on November 23, 2022 are summarized below:

 

    Warrants
Outstanding
Issued on
November 23,
2022		     Calculated Fair
Value per ADS		     Fair
Value		  
          US$     RMB  
Fair Value as of November 23, 2022     5,454,546       0.95       36,838  
Gain on change in fair value of warrant liability     —       —       (11,219 )
Effect of exchange rate changes     —       —       (1,243 )
Fair Value as of December 31, 2022     5,454,546       0.64       24,376  
Gain on change in fair value of warrant liability     —       —       (20,732 )
Effect of exchange rate changes     —       —       308  
Fair Value as of December 31, 2023     5,454,546       0.10       3,952  
Modification of warrants     4,894,565       —       —  
Loss on change in fair value of warrant liability     —       —       58,818  
Effect of exchange rate changes     —       —       610  
Fair Value as of December 31, 2024     10,349,111       0.85       63,380  
Modification of warrants     9,608,103       —       —  
Loss on change in fair value of warrant liability     —       —        (25,630 ) 
Exercised     (2,946,220 )     —        (15,080 )
Effect of exchange rate changes     —       —        (998 ) 
Fair Value as of December 31, 2025     17,010,994       0.18        21,672  

 

The warrants outstanding and fair values at each of the respective valuation dates of the warrants issued on October 28, 2024 are summarized below:

 

   Warrants
Outstanding
Issued on
October 28,
2024		   Calculated Fair
Value per ADS		   Fair
Value		 
       US$   RMB 
Fair Value as of October 28, 2024   761,719    1.27    6,888 
Gain on change in fair value of warrant liability   
—
    
—
    (1,752)
Effect of exchange rate changes   
—
    
—
    40 
Fair Value as of December 31, 2024   761,719    0.95    5,176 
Modification of warrants   707,179    
—
    
—
 
Gain on change in fair value of warrant liability   
—
    
—
    (2,394)
Effect of exchange rate changes   
—
    
—
    (77)
Fair Value as of December 31, 2024   1,468,898    0.26    2,705 

The following table summarizes the activities related to fair value of the warrants issued on November 23, 2022 and October 28, 2024:

 

   For the Year Ended
December 31,		 
   2024   2025 
   RMB   RMB 
Fair value of warrants at beginning of the year (Level 3)   3,952    68,556 
Issuances   6,888    
—
 
Exercised   
—
    (15,080)
Change in fair value   57,066    (28,024)
Effect of exchange rate changes   650    (1,075)
Fair value of warrants at end of the year (Level 3)   68,556    24,377