| Parent Company Only Condensed Financial Information |
22. | Parent Company Only Condensed Financial Information |
The Company performed a test on the restricted net assets of subsidiaries and the VIE in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the condensed financial information of the Company is required to be presented. The condensed financial information of the Company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries and the VIE. The subsidiaries did not pay any dividend to the Company for the years presented. 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, 2024 and 2025. 22. | Parent Company Only Condensed Financial Information (Continued) |
Balance sheet | | | | | | | As of December 31, | | As of December 31, | | | 2024 | | 2025 | | | RMB | | RMB | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | | 274,478 | | 175,993 | Prepayments and other current assets, net | | 11,556 | | 451 | Amounts due from subsidiaries | | 18,101 | | 310,097 | Total current assets | | 304,135 | | 486,541 | Non-current assets: | | | | | Investment in subsidiaries and the VIE | | 1,571,061 | | 2,971,039 | Total non-current assets | | 1,571,061 | | 2,971,039 | TOTAL ASSETS | | 1,875,196 | | 3,457,580 | LIABILITIES | | | | | Current liabilities: | | | | | Accrued expenses and other current liabilities | | 16,227 | | 5,780 | Amounts due to subsidiaries | | 71,884 | | 105,505 | Total current liabilities | | 88,111 | | 111,285 | TOTAL LIABILITIES | | 88,111 | | 111,285 | | | | | | MEZZANINE EQUITY: | | | | | Series Seed convertible redeemable preferred shares (US$0.0001 par value; 30,769,231 and nil shares authorized, issued and outstanding as of December 31, 2024 and 2025, respectively) | | 692,051 | | — | Series Angel convertible redeemable preferred shares (US$0.0001 par value; 21,978,022 and nil shares authorized, issued and outstanding as of December 31, 2024 and 2025, respectively) | | 495,921 | | — | Series B convertible redeemable preferred shares (US$0.0001 par value; 45,315,510 and nil shares authorized, issued and outstanding as of December 31, 2024 and 2025, respectively) | | 1,028,888 | | — | Series C-1 convertible redeemable preferred shares (US$0.0001 par value; 37,373,616 and nil shares authorized, issued and outstanding as of December 31, 2024 and 2025, respectively) | | 851,362 | | — | Series C-2 convertible redeemable preferred shares (US$0.0001 par value; 15,650,202 and nil shares authorized, issued and outstanding as of December 31, 2024 and 2025, respectively) | | 352,660 | | — | TOTAL MEZZANINE EQUITY: | | 3,420,882 | | — | | | | | | Ordinary shares (US$0.0001 par value, 348,913,419 shares authorized, 106,994,625 shares issued and outstanding as of December 31, 2024) | | 71 | | — | Class A ordinary shares (US$0.0001 par value, nil and 300,000,000 shares authorized, nil and 194,348,706 shares issued and outstanding as of December 31, 2024 and 2025, respectively) | | — | | 135 | Class B ordinary shares (US$0.0001 par value, nil and 100,000,000 shares authorized, nil and 82,132,500 shares issued and outstanding as of December 31, 2024 and 2025, respectively) | | — | | 55 | Additional paid in capital | | 198,664 | | 3,179,602 | Accumulated deficit | | (1,932,128) | | (72,851) | Statutory reserves | | 80,975 | | 230,033 | Accumulated other comprehensive income | | 18,621 | | 9,321 | Total shareholders’ (deficit)/equity | | (1,633,797) | | 3,346,295 | Total liabilities, mezzanine equity and shareholders’ (deficit)/equity | | 1,875,196 | | 3,457,580 |
22. | Parent Company Only Condensed Financial Information (Continued) |
Statement of comprehensive income | | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | General and administrative expenses | | (16,875) | | (15,820) | | (13,096) | Total operating expenses | | (16,875) | | (15,820) | | (13,096) | | | | | | | | Other income: | | | | | | | Others, net | | 8,792 | | 9,868 | | 3,525 | Equity in income of subsidiaries, the VIE and subsidiaries of the VIE | | 213,269 | | 871,798 | | 1,317,111 | Net income | | 205,186 | | 865,846 | | 1,307,540 | Accretion to preferred shares redemption value | | (536,059) | | (429,931) | | 700,795 | Net (loss)/income attributable to Yuanbao Inc.’s ordinary shareholders | | (330,873) | | 435,915 | | 2,008,335 | | | | | | | | Net income | | 205,186 | | 865,846 | | 1,307,540 | Other comprehensive income/(loss): | | | | | | | Foreign currency translation adjustments | | 3,495 | | 3,326 | | (9,300) | Total comprehensive income | | 208,681 | | 869,172 | | 1,298,240 | Accretion to preferred shares redemption value | | (536,059) | | (429,931) | | 700,795 | Comprehensive (loss)/income attributable to Yuanbao Inc.’s ordinary shareholders | | (327,378) | | 439,241 | | 1,999,035 |
Cash flows | | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | Net cash (used in)/provided by operating activities | | (1,703) | | 926 | | (15,683) | Cash flows from investing activities: | | | | | | | Cash paid for investments in subsidiaries | | (73) | | — | | (9,287) | Loans to subsidiaries | | — | | — | | (261,457) | Purchase of time deposits | | (858,554) | | (1,039,231) | | — | Cash received from maturity of time deposits | | 861,102 | | 1,241,203 | | — | Net cash provided by/(used in) investing activities | | 2,475 | | 201,972 | | (270,744) | Cash flows from financing activities: | | | | | | | Cash paid for initial public offering costs | | — | | (9,113) | | (8,062) | Cash received from subsidiaries (i) | | — | | 70,074 | | — | Proceeds from exercise of options | | — | | — | | 26 | Proceeds from issuance of ordinary shares upon IPO, net of commissions | | — | | — | | 204,880 | Net cash provided by financing activities | | — | | 60,961 | | 196,844 | Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | | 3,512 | | 4,588 | | (8,902) | Net increase/(decrease) in cash and cash equivalents and restricted cash | | 4,284 | | 268,447 | | (98,485) | Cash and cash equivalents and restricted cash at beginning of the year | | 1,747 | | 6,031 | | 274,478 | Cash and cash equivalents and restricted cash at end of the year | | 6,031 | | 274,478 | | 175,993 |
(i) | In 2024, the cash received from subsidiaries is interest free and due within one year. |
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