v3.26.1
Condensed Financial Information of the Parent Company
 12 Months Ended
Dec. 31, 2024
Unaudited Condensed Financial Information of the Parent Company [Abstract]  
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
18 CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

 

The Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. Payment of dividends by entities organized in the PRC are subject to limitations, procedures and formalities. Regulations in the PRC currently permit payments of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in the PRC. The Company’s PRC subsidiaries are also required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

 

In addition, the Company’s operations and revenues are conducted and generated in the PRC, all of the Company’s revenue being earned and currency received is denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB into USD.

 

Regulation S-X requires that the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s PRC subsidiary exceed 25% of the consolidated net assets of the Company.

 

Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been condensed or omitted. The Company’s investment in subsidiary is stated at cost plus equity in undistributed earnings of subsidiaries.

CONDENSED BALANCE SHEETS

 

   As of
December 31,
2025		   As of
December 31,
2024		 
Assets        
Current assets        
Cash  $63   $20 
Due from a related party   471    
-
 
Prepayments and other current assets   231    356 
Total Current Assets   765    376 
           
Investment in subsidiaries and VIEs (restricted)   131,852    116,768 
Non-current assets   131,852    116,768 
Total Assets  $132,617   $117,144 
           
Liabilities and Shareholders’ Equity          
           
Liabilities          
Current liabilities          
Due to a related party  $110   $
-
 
Accrued expenses and other current liabilities   590    
-
 
Total Current Liabilities   700    
-
 
Total liabilities   700    
-
 
           
Commitments and Contingencies   
 
    
 
 
           
Shareholders’ Equity          
Class A Ordinary share, $0.0001 par value, 400,000,000 shares authorized; 40,617,513 shares issued and outstanding as of December 31, 2025 and 2024.   4    4 
Class B Ordinary share, $0.0001 par value, 100,000,000 shares authorized; 41,880,000 shares issued and outstanding as of December 31, 2025 and 2024.   4    4 
Additional paid-in capital   83,762    83,762 
Retained earnings   54,347    42,421 
Accumulated other comprehensive loss   (6,200)   (9,047)
Total Shareholders’ Equity   131,917    117,144 
           
Total Liabilities and Shareholders’ Equity  $132,617   $117,144 

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 

   Years Ended December 31, 
   2025   2024   2023 
Equity in earnings of subsidiaries  $12,086   $11,137   $10,715 
General and administrative expenses   (160)   (259)   (421)
Net income   11,926    10,878    10,294 
                
Other comprehensive income (loss)               
Foreign currency translation adjustments   2,847    (1,681)   (1,757)
Comprehensive income  $14,773   $9,197   $8,537 

 

CONDENSED STATEMENTS OF CASH FLOW

 

   Years Ended December 31, 
   2025   2024   2023 
Cash flows from operating activities            
Net income  $11,926   $10,878   $10,294 
Adjustments to reconcile net income to net cash used in operating activities:               
Equity income of subsidiaries and VIEs   (12,086)   (11,137)   (10,715)
Due from a related party   (471)   
-
    
-
 
Prepaid expenses and other current assets   124    (263)   (92)
Net cash used in operating activities   (507)   (522)   (513)
Cash flows from investing activities               
Loan to a subsidiary   (150)   
-
    (6,660)
Net cash used in investing activities   (150)   
-
    (6,660)
Cash flows from financing activities               
Due to a related party   110    
-
    (600)
Loans from third parities   1,190    
-
    
-
 
Repayment to a third party   (600)   
-
    
-
 
Deferred issuance costs   
-
    
-
    (279)
Proceeds from initial public offering   
-
    
-
    8,547 
Net cash provided by financing activities   700    
-
    7,668 
Net increase(decrease) in cash   43    (522)   495 
Cash, beginning of year   20    542    47 
Cash, end of year  $63   $20   $542