Schedule I—Condensed Financial Information of the Company

12 Months Ended

Dec. 31, 2024

Schedule I—Condensed Financial Information of the Company [Abstract]

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE COMPANY

SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF THE COMPANY

Balance Sheets

(In thousands, except for shares and per share data)

		As of December 31,
		2023				2024				2024
		RMB				RMB				US$
										Note2(u)
ASSETS:
Current assets:
Cash and cash equivalents			23,595				20,014				2,742
Short term investments			—				3,694				506
Other receivables and amounts due from subsidiaries and affiliates			450,933				454,830				62,312
Total current assets			474,528				478,538				65,560
Non-current assets:
Investment in subsidiaries			3,010,729				2,512,999				344,279
Investment in an affiliate			—				1,004,683				137,641
Other non-current asset			13,461				17,549				2,404
Total assets			3,498,718				4,013,769				549,884

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Other payables and accrued expenses and amounts due to subsidiaries			1,427,456				1,467,253				201,012
Total liabilities			1,427,456				1,467,253				201,012
Ordinary shares (Authorized shares:10,000,000,000 at US$0.001 each; issued 1,158,913,224 and 1,159,323,224 shares, of which 1,134,236,184 and 1,132,091,984 shares were outstanding as of December 31, 2023 and 2024, respectively)			8,675				8,678				1,190
Treasury Stock			(178	)			(197	)			(27	)
Additional paid-in capital			162,721				192,760				26,408
Retained earnings			1,927,981				2,382,941				326,461
Accumulated other comprehensive loss			(27,936	)			(37,666	)			(5,160	)
Total shareholders’ equity			2,071,263				2,546,516				348,872
Total liabilities and shareholders’ equity			3,498,719				4,013,769				549,884

Statements of Income and Comprehensive Income

(In thousands)

		Year Ended December 31,
		2022				2023				2024				2024
		RMB				RMB				RMB				US$
General and administrative expenses			(11,318	)			(11,018	)			(34,232	)			(4,690	)
Selling expenses			—				(13,627	)			(11,927	)			(1,634	)
Interest income			5				1,201				353				48
Others, net			17,495				17,009				13,028				1,785
Equity in earnings of subsidiaries and an affiliate			94,090				286,912				487,738				66,821
Net Income attributable to the Company’s shareholders			100,272				280,477				454,960				62,330
Other comprehensive income (loss):
Foreign currency translation adjustments			3,728				2,249				1,688				231
Unrealized net (loss) gains on available-for-sale investments			(1,919	)			2,458				(11,418	)			(1,564	)
Share of other comprehensive gain of affiliates			4,688				—				—				—
Comprehensive income attributable to the Company’s shareholders			106,769				285,184				445,230				60,997

Statements of Cash Flows

(In thousands)

		Year Ended December 31,
		2022				2023				2024				2024
		RMB				RMB				RMB				US$
Cash flow from operating activities:
Net income			100,272				280,477				454,960				62,330
Adjustments to reconcile net income to net cash used in operating activities:
Equity in earnings of subsidiaries and an affiliate			(94,090	)			(312,323	)			(509,951	)			(69,864	)
Compensation expenses associated with stock options			461				17,095				38,589				5,287
Other non-cash adjustments			—				(22,569	)			(4,088	)			(560	)
Changes in operating assets and liabilities:
Other receivables			—				(20	)			18				2
Accrued payroll and Other payables			696				820				(2,432	)			(333	)
Net cash generated from (used in) from operating activities			7,339				(36,520	)			(22,904	)			(3,138	)
Cash flows generated from (used in) investing activities
Changes in investment in subsidiaries and an affiliate			907,006				2,458				(11,418	)			(1,564	)
Advances to subsidiaries and affiliates			(689,780	)			(10,005	)			11,087				1,519
Purchase of short-term investments			—				—				(3,650	)			(500	)
Fair value change of short-term investments			—				—				44				6
Proceeds from disposal of short-term investments			10,095				27,639				—				—
Net cash generated from (used in) investing activities			227,321				20,092				(3,937	)			(539	)
Cash flows used in financing activities:
Proceeds on exercise of stock options			2				—				—				—
Dividends paid			(317,730	)			—				—				—
Repurchase of ordinary shares from open market			(3,984	)			(29,044	)			(5,735	)			(786	)
Proceeds from share issuances			—				—				93				13
Net cash used in financing activities			(321,712	)			(29,044	)			(5,642	)			(773	)
Net decrease in cash and cash equivalents			(87,052	)			(45,472	)			(32,483	)			(4,450	)
Cash and cash equivalents and restricted cash at beginning of year			14,507				38,512				23,595				3,233
Effect of exchange rate changes on cash and cash equivalents			111,057				30,555				28,902				3,960
Cash and cash equivalents and restricted cash at end of the year			38,512				23,595				20,014				2,742

Schedule I has been provided pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, which require condensed financial information as to the financial position, cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of the consolidated and unconsolidated subsidiaries (including variable interest entities) together exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

As of December 31, 2024, RMB1,495,385 of the restricted capital and reserves are not available for distribution, and as such, the condensed financial information of the Company has been presented for the years ended December 31, 2022, 2023 and 2024.

As of December 31, 2024, there were no material contingencies, significant provisions of long-term obligations, and mandatory dividend or redemption requirements of redeemable shares or guarantees of the Company except for those which have been separately disclosed in the consolidated financial statements, if any.

Basis of preparation

The condensed financial information of the Company has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Group as of December 31, 2023 and 2024 and the years ended 2022, 2023 and 2024.