Exhibit 99.2
ZHIBAO TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Renminbi (“RMB”) and U.S. dollars (“US$”), except for share and per share data)
As of June 30, | As of December 31, | |||||||||||
2023 | 2023 | 2023 | ||||||||||
RMB | RMB | USD | ||||||||||
ASSETS | ||||||||||||
Current Assets | ||||||||||||
Cash and cash equivalents | 9,873,678 | 5,536,235 | 779,762 | |||||||||
Restricted cash | 4,999,974 | 103,954,158 | 14,641,637 | |||||||||
Accounts receivable, net | 77,750,249 | 83,367,397 | 11,742,052 | |||||||||
Due from related parties | 8,526,012 | 9,358,971 | 1,318,183 | |||||||||
Deferred offering cost | 4,223,769 | 6,009,101 | 846,364 | |||||||||
Prepaid expenses and other current assets, net | 8,332,330 | 11,549,777 | 1,626,752 | |||||||||
Total Current Assets | 113,706,012 | 219,775,639 | 30,954,750 | |||||||||
Property and equipment, net | 2,516 | 2,516 | 354 | |||||||||
Intangible assets, net | 2,183,677 | 1,596,592 | 224,875 | |||||||||
Operating lease right of use assets | 4,327,705 | 3,340,565 | 470,509 | |||||||||
Restricted cash, noncurrent | 5,000,000 | 5,000,000 | 704,235 | |||||||||
Deferred tax assets | 1,604,757 | 3,007,328 | 423,573 | |||||||||
Other non-current assets | 1,211,500 | 1,461,106 | 205,792 | |||||||||
Total Non-Current Assets | 14,330,155 | 14,408,107 | 2,029,338 | |||||||||
Total Assets | 128,036,167 | 234,183,746 | 32,984,088 | |||||||||
LIABILITIES, AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current Liabilities | ||||||||||||
Short-term borrowings | 27,267,797 | 26,814,237 | 3,776,706 | |||||||||
Accounts payable | 31,436,527 | 44,671,491 | 6,291,848 | |||||||||
Insurance premium payable | 3,553,377 | 107,381,104 | 15,124,312 | |||||||||
Income tax payable | 28,343 | 28,146 | 3,964 | |||||||||
Due to related parties | 290,200 | 11,790,200 | 1,660,615 | |||||||||
Operating lease liabilities, current | 2,009,034 | 1,985,778 | 279,691 | |||||||||
Accrued expenses and other liabilities | 14,714,898 | 9,819,860 | 1,383,097 | |||||||||
Subscription fees advanced from shareholders | 15,000,000 | 15,000,000 | 2,112,706 | |||||||||
Total Current Liabilities | 94,300,176 | 217,490,816 | 30,632,939 | |||||||||
Operating lease liabilities, noncurrent | 2,273,154 | 1,333,518 | 187,822 | |||||||||
Deferred tax liabilities | 7,698 | — | — | |||||||||
Total Liabilities | 96,581,028 | 218,824,334 | 30,820,761 | |||||||||
Commitments and contingencies | ||||||||||||
Shareholders’ Equity | ||||||||||||
Class A ordinary shares (par value $0.0001 per share, 450,000,000 shares authorized, 13,183,308 and 13,183,308 shares issued and outstanding as of June 30, 2023 and December 31, 2023, respectively)* | 8,820 | 8,820 | 1,318 | |||||||||
Class B ordinary shares (par value $0.0001 per share, 50,000,000 shares authorized, 16,816,692 and 16,816,692 shares issued and outstanding as of June 30, 2023 and December 31, 2023, respectively)* | 12,204 | 12,204 | 1,682 | |||||||||
Additional paid-in capital | 168,973,780 | 168,973,780 | 23,799,418 | |||||||||
Accumulated deficit | (137,544,783 | ) | (153,638,997 | ) | (21,639,599 | ) | ||||||
Accumulated other comprehensive income | 5,118 | 3,605 | 508 | |||||||||
Total Shareholders’ Equity | 31,455,139 | 15,359,412 | 2,163,327 | |||||||||
Total Liabilities and Shareholders’ Equity | 128,036,167 | 234,183,746 | 32,984,088 |
* | The shares and per share information are presented on a retroactive basis to reflect the reorganization and reclassification of Class A and Class B ordinary shares. |
ZHIBAO TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Amounts in Renminbi (“RMB”) and U.S. dollars (“US$”), except for share and per share data)
For the Six Months Ended December 31, | ||||||||||||
2022 | 2023 | 2023 | ||||||||||
RMB | RMB | USD | ||||||||||
Revenues | 91,799,665 | 84,254,221 | 11,866,959 | |||||||||
Cost of revenues | (58,724,886 | ) | (54,192,050 | ) | (7,632,791 | ) | ||||||
Gross profit | 33,074,779 | 30,062,171 | 4,234,168 | |||||||||
Operating expenses | ||||||||||||
Selling and marketing expenses | (12,672,484 | ) | (20,993,374 | ) | (2,956,855 | ) | ||||||
General and administrative expenses | (9,907,082 | ) | (10,153,441 | ) | (1,430,082 | ) | ||||||
Research and development expenses | (4,001,576 | ) | (7,294,313 | ) | (1,027,382 | ) | ||||||
Total operating expenses | (26,581,142 | ) | (38,441,128 | ) | (5,414,319 | ) | ||||||
Income (loss) from operations | 6,493,637 | (8,378,957 | ) | (1,180,151 | ) | |||||||
Interest expense, net | (549,856 | ) | (431,796 | ) | (60,817 | ) | ||||||
Other income, net | 295,648 | 127,399 | 17,944 | |||||||||
Income (Loss) Before Income Taxes | 6,239,429 | (8,683,354 | ) | (1,223,024 | ) | |||||||
Income tax benefits | 2,672,359 | 137,354 | 19,346 | |||||||||
Net Income (Loss) | 8,911,788 | (8,546,000 | ) | (1,203,678 | ) | |||||||
Other comprehensive loss | ||||||||||||
Foreign currency translation adjustments | — | (1,513 | ) | (213 | ) | |||||||
Comprehensive income (loss) | 8,911,788 | (8,547,513 | ) | (1,203,891 | ) | |||||||
Weighted average number of ordinary share outstanding | ||||||||||||
Basic* | 26,388,878 | 30,000,000 | 30,000,000 | |||||||||
Diluted* | 26,388,878 | 30,000,000 | 30,000,000 | |||||||||
Earnings (loss) per share | ||||||||||||
Basic* | 0.34 | (0.28 | ) | (0.04 | ) | |||||||
Diluted* | 0.34 | (0.28 | ) | (0.04 | ) |
* | The shares and per share information are presented on a retroactive basis to reflect the reorganization and reclassification of Class A and Class B ordinary shares. |
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ZHIBAO TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICITS) EQUITY
FOR THE SIX MONTHS ENDED DECEMBER 31, 2022 and 2023
(Amounts in Renminbi (“RMB”) and U.S. dollars (“US$”), except for share and per share data)
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in | Retained earnings (Accumulated | Accumulated Other Comprehensive | ||||||||||||||||||||||||||||
Shares* | Amount* | Shares* | Amount* | Capital | Deficits) | Income | Total | |||||||||||||||||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||||||||||||||||||
As of June 30, 2022 | 13,183,308 | 8,820 | 13,155,570 | 8,817 | 113,111,157 | (94,446,003 | ) | — | 18,682,791 | |||||||||||||||||||||||
Contribution from shareholders | — | — | — | — | 600,000 | — | — | 600,000 | ||||||||||||||||||||||||
Share based compensation | — | — | — | — | 531,100 | — | — | 531,100 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 8,911,788 | — | 8,911,788 | ||||||||||||||||||||||||
As of December 31, 2022 | 13,183,308 | 8,820 | 13,155,570 | 8,817 | 114,242,257 | (85,534,215 | ) | — | 28,725,679 | |||||||||||||||||||||||
As of June 30, 2023 | 13,183,308 | 8,820 | 16,816,692 | 12,204 | 168,973,780 | (137,544,783 | ) | 5,118 | 31,455,139 | |||||||||||||||||||||||
Adjustments due to the adoption of ASC 326 | — | — | — | — | — | (7,548,214 | ) | — | (7,548,214 | ) | ||||||||||||||||||||||
Net loss | — | — | — | — | — | (8,546,000 | ) | — | (8,546,000 | ) | ||||||||||||||||||||||
Foreign exchange adjustments | — | — | — | — | — | — | (1,513 | ) | (1,513 | ) | ||||||||||||||||||||||
As of December 31, 2023 | 13,183,308 | 8,820 | 16,816,692 | 12,204 | 168,973,780 | (153,638,997 | ) | 3,605 | 15,359,412 |
* | The shares and per share information are presented on a retroactive basis to reflect the reorganization and reclassification of Class A and Class B ordinary shares. |
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ZHIBAO TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Renminbi (“RMB”) and U.S. dollars (“US$”))
For the Six Months Ended December 31, | ||||||||||||
2022 | 2023 | 2023 | ||||||||||
RMB | RMB | USD | ||||||||||
Cash Flows From Operating Activities: | ||||||||||||
Net cash provided by operating activities | 205,695,961 | 85,607,856 | 12,057,615 | |||||||||
Cash Flows From Investing Activities | ||||||||||||
Loans made to related parties | (15,500 | ) | — | — | ||||||||
Repayment of loans from related parties | 15,983,000 | — | — | |||||||||
Purchase of intangible assets | (1,238,938 | ) | (264,606 | ) | (37,269 | ) | ||||||
Proceeds from disposal of property and equipment | 10,520 | — | — | |||||||||
Net cash provided by (used in) investing activities | 14,739,082 | (264,606 | ) | (37,269 | ) | |||||||
Cash Flows From Financing Activities | ||||||||||||
Capital contribution from shareholders | 600,000 | — | — | |||||||||
Proceeds from short-term bank borrowings | 12,100,000 | 25,000,000 | 3,521,176 | |||||||||
Repayment of short-term bank borrowings | (12,432,203 | ) | (25,453,560 | ) | (3,585,059 | ) | ||||||
Borrowings from related parties | — | 26,500,000 | 3,732,447 | |||||||||
Repayment of borrowings to related parties | (200,000 | ) | (15,000,000 | ) | (2,112,706 | ) | ||||||
Payment of offering cost | (2,433,566 | ) | (1,771,436 | ) | (249,502 | ) | ||||||
Net cash (used in) provided by financing activities | (2,365,769 | ) | 9,275,004 | 1,306,356 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (1,513 | ) | (213 | ) | |||||||
Net increase in cash, cash equivalents and restricted cash | 218,069,274 | 94,616,741 | 13,326,489 | |||||||||
Cash, cash equivalents and restricted cash at beginning of the period | 11,574,189 | 19,873,652 | 2,799,145 | |||||||||
Cash, cash equivalents and restricted cash at end of the period | 229,643,463 | 114,490,393 | 16,125,634 |
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ZHIBAO TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued)
(Amounts in Renminbi (“RMB”) and U.S. dollars (“US$”))
For the Six Months Ended December 31, | ||||||||||||
2022 | 2023 | 2023 | ||||||||||
RMB | RMB | USD | ||||||||||
Supplemental Cash Flow Information | ||||||||||||
Cash paid for interest expense | 668,772 | 507,297 | 71,451 | |||||||||
Cash paid for income tax | — | — | — | |||||||||
Non-cash Investing and Financing activities | ||||||||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 4,181,768 | 81,674 | 11,504 | |||||||||
Settlement of due from related parties with due to related parties | 459,800 | — | — | |||||||||
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets |
As of June 30, | As of December 31, | |||||||||||
2023 | 2023 | 2023 | ||||||||||
RMB | RMB | USD | ||||||||||
Cash and cash equivalents | 9,873,678 | 5,536,235 | 779,762 | |||||||||
Restricted cash | 4,999,974 | 103,954,158 | 14,641,637 | |||||||||
Restricted cash, noncurrent | 5,000,000 | 5,000,000 | 704,235 | |||||||||
19,873,652 | 114,490,393 | 16,125,634 |
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