(9) Other current assets
Other current assets consist of the following:
| | |
As of
June 30, | | |
As of
December 31, | |
| | |
2025 | | |
2025 | |
| | |
RMB | | |
RMB | |
| Prepaid operating costs | |
| - | | |
| 784 | |
| Prepaid miscellaneous daily expenses | |
| 430 | | |
| 486 | |
| Equity investments with readily determinable fair value (i) | |
| - | | |
| 32,235 | |
| Excess input value-added tax (“VAT”) credits (ii) | |
| - | | |
| 172 | |
| Total | |
| 430 | | |
| 33,677 | |
| (i) | The amount as of December 31, 2025 represented the Company’s
holdings of equity securities in BGM Group Limited and AIFU Inc., respectively. These equity securities have readily determinable fair
values and are measured at fair value with changes in fair value recognized in earnings, in accordance with ASC 321, Investments —
Equity Securities. Unrealized gains and losses are reported in the unaudited condensed consolidated statements of operations and comprehensive
income (loss) as “net loss from fair value change”. |
| (ii) | The excess input VAT credits represented VAT already paid or borne
by the Group’s PRC entities that are qualified as general VAT taxpayers on the goods purchased which will be utilized to offset
against future output VAT when calculating the VAT payable. The VAT balance is recorded either in other current liabilities or other current
assets on the consolidated balance sheets. |
|