| Parent Company Only Condensed Financial Information |
27. Parent Company Only Condensed Financial Information The Company performed a test on the restricted net assets of its consolidated subsidiaries, VIEs and VIEs’ subsidiaries in accordance with Regulation S-X Rule 4-08 (e) (3), General Notes to Financial Statements and concluded that it was applicable for the Company to disclose the financial information for the Company only. The subsidiaries did not pay any dividend to the Company for the years ended December 31, 2022, 2023 and 2024. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, or guarantees as of December 31, 2023 and 2024. 27. Parent Company Only Condensed Financial Information (Continued) Condensed balance sheets | | | | | | | As of December 31, | | | 2023 | | 2024 | | | RMB | | RMB | | | | | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | | 1,121,233 | | 4,943,339 | Time deposits and short-term investments | | — | | 2,613,125 | Amounts due from subsidiaries of the Group | | 54,475,676 | | 49,408,573 | Prepayments and other current assets | | — | | 23,955 | Total current assets | | 55,596,909 | | 56,988,992 | Non-current assets: | | | | | Investments in subsidiaries | | 11,452,246 | | 20,111,191 | Long-term investments | | 10,268 | | 45,799 | Property, plant and equipment, net | | 10 | | 2 | Total non-current assets | | 11,462,524 | | 20,156,992 | Total assets | | 67,059,433 | | 77,145,984 | LIABILITIES | | | | | Current liabilities: | | | | | Short-term borrowings | | 6,719,797 | | — | Amounts due to subsidiaries of the Group | | 3,598 | | 3,721 | Accruals and other current liabilities | | 193,414 | | 12,482 | Total current liabilities | | 6,916,809 | | 16,203 | Non-current liabilities: | | | | | Long-term borrowings | | — | | 6,254,897 | Total non-current liabilities | | — | | 6,254,897 | Total liabilities | | 6,916,809 | | 6,271,100 | SHAREHOLDERS’ EQUITY | | | | | Class A Ordinary Shares | | 1,215 | | 1,215 | Class B Ordinary Shares | | 235 | | 235 | Treasury shares | | (90) | | (74) | Additional paid-in capital | | 57,479,857 | | 60,126,623 | Accumulated other comprehensive loss | | (224,876) | | (171,748) | Retained earnings | | 2,886,283 | | 10,918,633 | Total shareholders’ equity | | 60,142,624 | | 70,874,884 | Total liabilities and shareholders’ equity | | 67,059,433 | | 77,145,984 |
27. Parent Company Only Condensed Financial Information (Continued) Condensed statements of comprehensive (loss)/income | | | | | | | | | For the Year Ended December 31, | | | 2022 | | 2023 | | 2024 | | | RMB | | RMB | | RMB | | | | | | | | Operating expenses: | | | | | | | Research and development | | (629) | | — | | (173) | Selling, general and administrative | | (35,642) | | (44,419) | | (29,303) | Total operating expenses | | (36,271) | | (44,419) | | (29,476) | Loss from operations | | (36,271) | | (44,419) | | (29,476) | Other (expense)/income | | | | | | | Interest expense | | (43,096) | | (38,323) | | (51,818) | Interest income and investment income, net | | 190,528 | | 70,953 | | 265,836 | Share of (loss)/income from subsidiaries, and (loss)/income of VIEs | | (2,300,538) | | 11,716,065 | | 7,821,521 | Others, net | | 177,165 | | (137) | | 26,287 | (Loss)/Income before income tax | | (2,012,212) | | 11,704,139 | | 8,032,350 | Income tax expense | | (3) | | (6) | | — | Net (loss)/income | | (2,012,215) | | 11,704,133 | | 8,032,350 | Other comprehensive income/(loss) | | | | | | | Foreign currency translation adjustment, net of tax | | 1,327,761 | | (30,766) | | 53,128 | Comprehensive (loss)/income | | (684,454) | | 11,673,367 | | 8,085,478 |
27. Parent Company Only Condensed Financial Information (Continued) Condensed statements of cash flows | | | | | | | | | For the Year Ended December 31, | | | 2022 | | 2023 | | 2024 | | | RMB | | RMB | | RMB | | | | | | | | CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | Net cash provided by operating activities | | 450,517 | | 56,515 | | 205,249 | CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | Net cash (used in)/provided by inter-company transactions | | (23,397,234) | | (3,589,329) | | 6,751,926 | Placement of time deposits | | — | | — | | (2,179,080) | Redemption of time deposits | | — | | 2,137,626 | | — | Placement of short-term investments | | (2,609,767) | | — | | (364,515) | Redemption of short-term investments | | 8,036,663 | | — | | — | Purchase of property, plant and equipment and intangible assets | | (25) | | — | | — | Net cash (used in)/provided by investing activities | | (17,970,363) | | (1,451,703) | | 4,208,331 | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | Proceeds from borrowings | | 669,913 | | 699,300 | | — | Repayment of borrowings | | (349,163) | | (338,020) | | (700,000) | Proceeds from exercise of share options | | 6,728 | | 11,953 | | 14,658 | Proceeds from issuance of ordinary shares | | 2,462,300 | | 1,174,319 | | — | Net cash provided by/(used in) financing activities | | 2,789,778 | | 1,547,552 | | (685,342) | Effects of exchange rate changes on cash, cash equivalents and restricted cash | | 941,417 | | (5,355) | | 93,868 | Net change in cash, cash equivalents and restricted cash | | (13,788,651) | | 147,009 | | 3,822,106 | Cash, cash equivalents and restricted cash at beginning of the year | | 14,762,875 | | 974,224 | | 1,121,233 | Cash, cash equivalents and restricted cash at end of the year | | 974,224 | | 1,121,233 | | 4,943,339 |
Basis of presentation The Company’s accounting policies are the same as the Group’s accounting policies with the exception of the accounting for the investments in subsidiaries and contractual interests in VIEs. For the Company only condensed financial information, the Company records its investments in subsidiaries, contractual interests in VIEs and VIEs’ subsidiaries under the equity method of accounting as prescribed in ASC 323 “Investments—Equity Method and Joint Ventures”. The parent company only condensed financial information should be read in conjunction with the Group’ consolidated financial statements.
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