| PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION |
21. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets | | | | | | | As of December 31, | | | 2022 | | 2023 | | | US$ | | US$ | | | | | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | | 2,926 | | 22,311 | Prepayments and other current assets | | 126 | | 1 | Amounts from subsidiaries, PRC Domestic Entities and PRC Domestic Entities’ subsidiaries | | — | | 441,251 | Amounts due from subsidiaries | | 4,270 | | 1,045 | Total current assets | | 7,322 | | 464,608 | | | | | | Non-current assets: | | | | | Long-term investments | | 17,355 | | 34,470 | Investment in subsidiaries, PRC Domestic Entities and PRC Domestic Entities’ subsidiaries | | 984,175 | | 709,711 | Total non-current assets | | 1,001,530 | | 744,181 | Total assets | | 1,008,852 | | 1,208,789 | | | | | | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | Current liabilities: | | | | | Long-term bond payable, current | | 103,380 | | 50,590 | Accrued expenses and other liabilities: | | 31,440 | | 69,779 | Amounts due to subsidiaries, PRC Domestic Entities and PRC Domestic Entities’ subsidiaries | | 282,228 | | 669,847 | Amount due to related parties | | — | | 34,676 | Total current liabilities | | 417,048 | | 824,892 | Total liabilities | | 417,048 | | 824,892 | | | | | | Commitments and contingencies | | — | | — | | | | | | Shareholders’ equity: | | | | | | | | | | Class A ordinary shares, par value Hong Kong Dollar (“HK$”) 1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate; 71,775,686 shares issued as of December 31, 2022 and 2023, respectively; 66,020,679 shares outstanding as of December 31, 2022, and 2023, respectively. | | 9,244 | | 9,244 | Class B ordinary shares, par value Hong Kong Dollar (“HK$”) 1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate; 24,336,650 shares issued and outstanding as of December 31, 2022, and 2023, respectively; each Class B ordinary share is convertible into one Class A ordinary share. | | 3,124 | | 3,124 | Additional paid-in capital | | 545,173 | | 545,364 | Accumulated other comprehensive loss | | (9,031) | | (37,408) | Retained earnings | | 154,577 | | (25,144) | Less: Treasury shares (5,755,007 shares as of December 31, 2022 and 2023, respectively.) | | (111,283) | | (111,283) | Total shareholders’ equity | | 591,804 | | 383,897 | Total liabilities and shareholders’ equity | | 1,008,852 | | 1,208,789 |
21. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (continued) Condensed statements of comprehensive income (loss) | | | | | | | | | Year Ended December 31, | | | 2021 | | 2022 | | 2023 | | | US$ | | US$ | | US$ | | | | | | | | Revenues | | — | | — | | — | Cost of revenues | | — | | — | | — | Gross profit | | — | | — | | — | General and administrative expenses | | (8,347) | | (2,257) | | (1,664) | Other income (loss) | | — | | — | | (8,010) | Operating loss | | (8,347) | | (2,257) | | (9,674) | Equity in profits (losses) of subsidiaries, PRC Domestic Entities and PRC Domestic Entities’ subsidiaries | | (6,291) | | (69,947) | | (157,843) | Foreign exchange gain (loss) | | 2,814 | | 264 | | (12) | Interest income | | 22 | | 484 | | 1,117 | Interest expenses | | (7,452) | | (4,932) | | (4,264) | Change in fair value of securities | | (19,142) | | 826 | | (9,045) | Investment income, net | | 18,812 | | — | | — | Loss before income taxes | | (19,584) | | (75,562) | | (179,721) | Income tax expenses | | — | | — | | — | Net loss | | (19,584) | | (75,562) | | (179,721) | Other comprehensive income (loss) | | | | | | | Foreign currency translation adjustments | | 34,089 | | (47,413) | | (27,872) | Gain (loss) on intra-entity foreign transactions of long-term investment nature | | 756 | | (2,794) | | (505) | Other comprehensive income (loss) | | 34,845 | | (50,207) | | (28,377) | Comprehensive income (loss) | | 15,261 | | (125,769) | | (208,098) |
Condensed statements of cash flows | | | | | | | | | Year Ended December 31, | | | 2021 | | 2022 | | 2023 | | | US$ | | US$ | | US$ | | | | | | | | Net cash generated from operating activities | | 52,462 | | 146,815 | | 86,652 | Net cash generated from (used in) investing activities | | 22,149 | | (176) | | (14,477) | Net cash used in financing activities | | (99,804) | | (162,929) | | (52,790) | Exchange rate effect on cash, cash equivalents and restricted cash | | — | | (4) | | — | Net increase (decrease) in cash, cash equivalents and restricted cash | | (25,193) | | (16,294) | | 19,385 | Cash, cash equivalents and restricted cash at beginning of year | | 44,413 | | 19,220 | | 2,926 | Cash, cash equivalents and restricted cash at end of year | | 19,220 | | 2,926 | | 22,311 |
Basis of Presentation For the presentation of the parent company only condensed financial information, the Company records its investment in subsidiaries, PRC Domestic Entities and PRC Domestic Entities’ subsidiaries which it effectively controls through contractual agreements, 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 “Investment in subsidiaries, PRC Domestic Entities, and PRC Domestic Entities’ subsidiaries” and the subsidiaries, PRC Domestic Entities and PRC Domestic Entities’ subsidiaries’ profit or loss as “Equity in profits (losses) of subsidiaries, PRC Domestic Entities and PRC Domestic Entities’ subsidiaries” on the condensed statements of comprehensive income (loss). The parent company only condensed financial information should be read in conjunction with the Company’s consolidated financial statements.
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