Schedule of Reconciliation of Differences Between Statutory Income Tax

The reconciliation of taxes at the PRC statutory rate to our provision for income taxes for the years ended December 31, 2023 and 2024 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:

	For the Years Ended December 31,
	2023			2024
	%			%
PRC income tax statutory rate		25.00	%		25.00	%
Non-deductible expenses		(10.76	)%		(8.04	)%
Non-deductible interest expense		(9.83	)%		(6.19	)%
Non-deductible entertainment expense		(0.67	)%		(1.19	)%
Others		(0.26	)%		(0.66	)%
Effect of preferential tax rate		(6.21	)%		(6.40	)%
Prior year true up of NOL		(31.15	)%		(1.93	)%
Expiration of NOL		(2.38	)%		(5.42	)%
Change in valuation allowance		25.50	%		(3.21	)%
Income tax expense		—			—

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 3, Summary of Significant Accounting Policies, the reconciliation of taxes at the PRC statutory rate to our provision for income taxes for the year ended December 31, 2025 was as follows (in RMB, except for percentages):

	For the Years Ended December 31, 2025
	RMB			US$			%
Loss before income tax expense		(130,931,546	)		(18,722,961	)		100.00	%
PRC income tax statutory rate		25.00	%		25.00	%		25.00	%
Computed income tax benefit with PRC statutory income tax rate		(32,732,887	)		(4,680,740	)		25.00	%
Domestic tax effects
Non-deductible expenses		3,698,281			528,846			(2.82	)%
Non-deductible interest expense		2,730,350			390,435			(2.09	)%
Non-deductible entertainment expense		675,841			96,644			(0.52	)%
Others		292,090			41,767			(0.22	)%
Effect of preferential tax rate		6,058,580			866,365			(4.63	)%
Prior year true up of NOL		1,073,852			153,559			(0.82	)%
Expiration of NOL		7,824			1,120			(0.01	)%
Changes in tax rates enacted in the current period		—			—			—
Change in valuation allowance		9,558,144			1,366,796			(7.30	)%
Foreign tax effects		12,336,581			1,764,108			(9.42	)%
Statutory tax rate diﬀerence between Cayman and PRC		12,336,967			1,764,163			(9.42	)%
Statutory tax rate diﬀerence between HK and PRC		(386	)		(55	)		(0.00	)%
Income tax expense		375			54			(0.00	)%

Schedule of Tax Effects of Temporary Differences and Net Operating Losses

The tax effects of temporary differences and net operating losses that give rise to the deferred tax balances at December 31, 2024 and 2025 are as follows:

	As of December 31,
	2024			2025			2025
	RMB			RMB			US$
Deferred tax assets:
Credit loss provision		575,804			474,037			67,786
Inventory reserve		121,492			455,194			65,092
Impairment of long-term investment		75,000			—			—
Impairment of fixed asset		—			10,986			1,571
Lease liability		606,798			561,916			80,353
Accrued payroll payable		1,179,467			1,204,540			172,247
Net operating loss carry forwards		82,023,102			91,433,134			13,074,764
Total deferred tax assets		84,581,663			94,139,807			13,461,813
Valuation allowance		(84,581,663	)		(94,139,807	)		(13,461,813	)
Deferred tax assets, net		—			—			—