F-2 | ||||
F-3 | ||||
F-4 |
||||
F-5 | ||||
F-6 | ||||
F-7 |
As of December 31, | ||||||||||||||
Note | 2022 | 2023 | ||||||||||||
RMB | RMB | US$ | ||||||||||||
(Note 2(f)) | ||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | 4 | |||||||||||||
Inventories, net | 5 | |||||||||||||
Prepayments and other current assets, net | 6 | |||||||||||||
Short-term investments | 7 | |||||||||||||
Total current assets | ||||||||||||||
Non-current assets: | ||||||||||||||
Cryptocurrency | ||||||||||||||
Property, equipment, and software, net | 8 | |||||||||||||
Intangible assets, net | 9 | |||||||||||||
Right-of-use | 10 | |||||||||||||
Deferred tax assets | 17 | |||||||||||||
Prepayments on long-term assets | 11 | |||||||||||||
Other non-current assets | ||||||||||||||
Total non-current assets | ||||||||||||||
Total assets | ||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | ||||||||||||||
Contract liabilities | 2(n) | |||||||||||||
Income tax payable | ||||||||||||||
Lease liabilities | 10 | |||||||||||||
Provision for warranty | ||||||||||||||
Accrued liabilities and other current liabilities | 12 | |||||||||||||
Total current liabilities | ||||||||||||||
Non-current liabilities: | ||||||||||||||
Deferred tax liabilities | 17 | |||||||||||||
Lease liabilities | 10 | |||||||||||||
Total non-current liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Shareholders’ equity | ||||||||||||||
Ordinary shares (US$ | 13 | |||||||||||||
Subscriptions receivable from shareholders | 13 | ( | ) | ( | ) | |||||||||
Additional paid-in capital | ||||||||||||||
Statutory reserve | ||||||||||||||
Accumulated other comprehensive income | ||||||||||||||
Retained earnings | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities and shareholders’ equity | ||||||||||||||
For the year ended December 31, |
||||||||||||||||||||
Note |
2021 |
2022 |
2023 |
|||||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||
(Note 2(f)) |
||||||||||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||||||
Products revenue |
15 | |||||||||||||||||||
Cost of revenue |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Gross profit |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||
Research and development expenses
|
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Sales and marketing expenses
|
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
General and administrative expenses
|
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total operating expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income/(loss) from operations |
( |
) | ( |
) | ||||||||||||||||
Interest income
|
||||||||||||||||||||
Foreign exchange gain/(loss), net
|
( |
) | ( |
) | ( |
) | ||||||||||||||
Other income, net
(2) |
16 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income/(loss) before income tax expenses |
( |
) | ( |
) | ||||||||||||||||
Income tax (expense)/benefit
|
17 | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income/(loss) |
( |
) | ( |
) | ||||||||||||||||
Foreign currency translation adjustment, net of
tax |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) |
( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Weighted average number of shares used in per share calculation (1) : |
||||||||||||||||||||
— Basic and diluted
|
19 | |||||||||||||||||||
Net earnings/(loss) per share |
||||||||||||||||||||
— Basic and diluted
|
19 | ( |
) | ( |
) |
(1) |
Retroactively restated for the stock subdivision as described in Note 1.
|
(2) |
The reclassification of amortization of other income and interest expense and guarantee fee to other income, net can be referenced in Note 2(ad). |
Ordinary Shares (1) | ||||||||||||||||||||||||||||||||
Number of Shares | Amount | Subscription receivables from shareholders | Additional paid-in capital | Statutory reserve | Accumulated other comprehensive income | Retained earnings/ (accumulated (deficit) | Total | |||||||||||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||||||||||||||||||
Balance as of January 1,2021 | ( | ) | — | — | ( | ) | ||||||||||||||||||||||||||
Issuance of ordinary shares | * | — | — | — | — | |||||||||||||||||||||||||||
Net income and total comprehensive income for the year | — | — | — | — | — | — | ||||||||||||||||||||||||||
Appropriations to statutory reserve | — | — | — | — | — | ( | ) | — | ||||||||||||||||||||||||
Capital injection | — | — | — | — | — | — | ||||||||||||||||||||||||||
Contribution from the then shareholder for the reorganization | — | — | — | — | — | — | ||||||||||||||||||||||||||
Distribution from the then shareholders for the reorganization | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||||
Balance as of December 31, 2021 | ( | ) | — | |||||||||||||||||||||||||||||
Balance as of January 1,2022 | ( | ) | — | |||||||||||||||||||||||||||||
Net income and total comprehensive income for the year | — | — | — | — | — | — | ||||||||||||||||||||||||||
Appropriations to statutory reserve | — | — | — | — | — | ( | ) | — | ||||||||||||||||||||||||
Balance as of December 31, 2022 | ( | ) | — | |||||||||||||||||||||||||||||
Balance as of January 1,2023 | ( | ) | — | |||||||||||||||||||||||||||||
Issuance of ordinary shares | * | — | — | — | — | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net (loss) for the year | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | ||||||||||||||||||||||||||
Appropriations to statutory reserve | — | — | — | — | — | ( | ) | — | ||||||||||||||||||||||||
Balance as of December 31, 2023 | ( | ) | ||||||||||||||||||||||||||||||
(1) | Retroactively restated for the stock subdivision as described in Note 1. |
* | Represents amount less than RMB 1,000. |
For the year ended December 31, |
||||||||||||||||
2021 |
2022 |
2023 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(Note 2(f)) |
||||||||||||||||
(in thousands) |
||||||||||||||||
Cash flows from operating activities |
||||||||||||||||
Net income/(loss) |
( |
) |
( |
) |
||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
Share-based compensation expense |
||||||||||||||||
Depreciation and amortization of property, equipment and software |
||||||||||||||||
Inventory provision |
||||||||||||||||
Write-down of prepayments |
||||||||||||||||
Deferred income tax expense/(benefit) |
( |
) |
( |
) |
||||||||||||
Investment income |
( |
) |
( |
) |
||||||||||||
Changes in fair value of short-term investments |
( |
) |
( |
) |
||||||||||||
Impairment loss of cryptocurrency |
||||||||||||||||
Loss on disposal of property, equipment and software |
||||||||||||||||
Interest expense and guarantee fee |
||||||||||||||||
Foreign exchange gain |
||||||||||||||||
Changes in assets and liabilities: |
||||||||||||||||
Decrease in accounts receivable |
||||||||||||||||
Decrease /(Increase) in inventories |
( |
) |
( |
) |
||||||||||||
(Increase) in prepayments and other current assets |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
(Increase) Other non-current assets |
( |
) |
( |
) |
||||||||||||
Increase /(Decrease) in accounts payable |
( |
) |
( |
) |
( |
) |
||||||||||
Increase /(Decrease) in contract liabilities |
( |
) |
||||||||||||||
Change in right-of-use assets and lease liabilities (1) |
( |
) |
||||||||||||||
Increase /(Decrease) in income tax payable |
( |
) |
( |
) |
||||||||||||
(Decrease) in provision for warranty |
( |
) |
( |
) |
( |
) |
||||||||||
Increase /(Decrease) in accrued liabilities and other liabilities |
( |
) |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by/(used in) operating activities |
( |
) |
( |
) |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flows from investing activities |
||||||||||||||||
Payment for short-term investments |
( |
) |
( |
) |
||||||||||||
Proceeds from disposal of short-term investments |
||||||||||||||||
Purchase of cryptocurrency |
( |
) |
( |
) |
||||||||||||
Purchase of property, equipment and software |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Purchase of intangible assets |
( |
) |
( |
) |
||||||||||||
Prepayments on long-term assets |
( |
) |
( |
) |
( |
) |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from issuance of ordinary shares |
||||||||||||||||
Payment for cost of issuance |
( |
) |
( |
) |
||||||||||||
Proceeds from capital contribution in a subsidiary from a shareholder |
||||||||||||||||
Proceeds from short-term debts |
||||||||||||||||
Repayment of short-term debts |
( |
) |
||||||||||||||
Interest expense and guarantee fee |
( |
) |
||||||||||||||
Contribution from the then shareholder for the reorganization |
||||||||||||||||
Distribution to the then shareholders for the reorganization |
( |
) |
||||||||||||||
Amounts from to a related party |
( |
) |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by financing activities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase/(decrease) in cash and cash equivalents |
( |
) |
( |
) |
||||||||||||
Effect of exchange rate changes on cash and cash equivalent
|
||||||||||||||||
Cash and cash equivalents, at the beginning of year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents at the end of year |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Supplemental disclosure of cash flow information: |
||||||||||||||||
Cash paid for interest |
||||||||||||||||
Cash paid for guarantee fee |
||||||||||||||||
Cash paid for income taxes |
||||||||||||||||
Supplemental disclosure of non-cash investing activities: |
||||||||||||||||
Purchases of property, equipment, and software included in accrued liabilities and other liabilities |
(1) |
The reclassification of amortization of right-of-use assets and (decrease) in lease liabilities to changes in right-of-use assets and lease liabilities can be referenced in Note 2(ad). |
1. | Organization and principal activities |
(a) | Principal activities |
Date of incorporation | Place of incorporation | Equity interest held | Principal activities | |||||||||||
Name of subsidiaries | ||||||||||||||
Intchains Global Limited | % | |||||||||||||
Intchains Pte. Ltd. | % | |||||||||||||
Intchains Investment (BVI) Limited | % | |||||||||||||
Intchains Technology (Hongkong) Limited | % | |||||||||||||
Jerryken Intelligent Technology (Shanghai) Co., Ltd. | % | |||||||||||||
Shanghai Intchains Technology Co., Ltd. | % | |||||||||||||
Shanghai Lianfa Information Technology Co., Ltd. | % | |||||||||||||
Shanghai Xinbaiwei Smart Technology Co., Ltd. | % | |||||||||||||
Yancheng Intchains Technology Co., Ltd.* | % | |||||||||||||
Shanghai Intchains Technology (Hong Kong) Company Limited.* | % | |||||||||||||
Intchains Capital Limited | % |
* | Yancheng Intchains Technology Co., Ltd. was de-registered on September 17, 2021. Shanghai Intchains Technology (Hong Kong) Company Limited was transferred to an independent third party with consideration of RMB |
(b) | Reorganization and stock subdivision |
* | As the shareholdings in the Company and Shanghai Intchains were with a high degree of common ownership immediately before and after the Reorganization, even though no single investor controlled the Group, the transaction of the Reorganization was determined as recapitalization with lack of economic substance, and was accounted for in a manner similar to a common control transaction. Consequently, the financial information of the Group is presented on a carryover basis for all periods presented. The accompanying consolidated financial statements have been prepared as if the current corporate structure has been in existence throughout the periods presented. The consolidation of the Company has been accounted for at historical cost at the beginning of the first period presented in the accompanying consolidated financial statements. The number of outstanding shares in the consolidated balance sheets, the consolidated statements of changes in shareholders’ equity, and per share information including the net (losses)/earnings per share have been presented retrospectively as of the beginning off the earliest period presented on the consolidated financial statements to reflect the final shares immediately after the stock subdivision on July 8, 2022. |
2. |
Principal Accounting Policies |
(a) |
Basis of presentation |
(b) |
Basis of preparation |
(c) |
Use of estimates |
(d) |
Consolidation |
(e) | Functional currency and foreign currency translation |
(f) | Convenience translation |
(g) | Fair value of financial instruments |
Level 1 | Level 2 | Level 3 | ||||||||||
(in thousands) | ||||||||||||
As of December 31, 2023 | ||||||||||||
Short-term investments: | ||||||||||||
U.S. Treasury securities |
(h) | Cash and cash equivalents |
(i) | Short-term investments |
(j) | Inventories |
(k) | Property, equipment and software, net |
Leasehold improvements | ||
Computers and electronic equipment | ||
Furniture | ||
Software | ||
Building | ||
Building improvement | ||
Motor vehicles |
(l) | Intangible assets, net |
Trademarks | - years |
(m) | Impairment of long-lived assets |
(n) | Contract liabilities |
(o) | Revenue from contracts with customers (ASC 606) |
(p) | Value-added-tax (“VAT”) recoverable and surcharges |
(q) | Cost of revenue |
(r) | Research and development expenses |
(s) | Sales and marketing expenses |
(t) |
General and administrative expenses |
(u) |
Government grants |
(v) |
Lease arrangement as lessee |
(w) |
Employee social security and welfare benefits |
(x) |
Income taxes |
(y) |
Share-based compensation |
(z) |
Statutory reserves |
(aa) |
(Loss)/Earnings per share |
(ab) |
Comprehensive income (loss) |
(ac) |
Segment reporting |
(ad) |
Reclassification of Presentation in the Group’s Consolidated Statements of Operations and Comprehensive Income/(Loss) and Consolidated Statements of Cash Flows |
(ae) |
Recently issued accounting pronouncements |
i. |
New and amended standards adopted by the Group: |
ii. |
New and amended standards not yet adopted by the Group: |
3. |
Risks and concentration |
(a) |
Concentration of credit risk |
For the year ended December 31, |
||||||||||||
2021 |
2022 |
2023 |
||||||||||
Customer A
|
% | % | % | |||||||||
Customer B
|
% | % | % | |||||||||
Customer C
|
% | % | % | |||||||||
Customer D
|
% | % | ||||||||||
Customer E
|
% | % |
(b) |
Supplier concentration |
4. | Cash and cash equivalents |
RMB | RMB equivalent USD | RMB equivalent SGD | Total in RMB | |||||||||||||||||||||
China | Overseas | China | Overseas | Overseas | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||
5. | Inventories, net |
As of December 31, | ||||||||
2022 | 2023 | |||||||
(in thousands) | ||||||||
Finished goods | ||||||||
Work in process | ||||||||
Raw materials | ||||||||
Inventories | ||||||||
Less: inventory provision | ( | ) | ( | ) | ||||
Total | ||||||||
6. | Prepayments and other current assets, net |
As of December 31, | ||||||||
2022 | 2023 | |||||||
(in thousands) | ||||||||
Prepayments and other current assets, net: | ||||||||
VAT deductible | ||||||||
Prepayments to vendors (Note a) | ||||||||
Prepayments of listing expenses (Note b) | ||||||||
Interest receivables | ||||||||
Rental and other deposits | ||||||||
Others | ||||||||
Total | ||||||||
7. | Short-term investments |
As of December 31, | ||||||||
2022 | 2023 | |||||||
(in thousands) | ||||||||
Debt securities: | ||||||||
U.S. Treasury securities | ||||||||
8. | Property, equipment and software, net |
As of December 31, | ||||||||
2022 | 2023 | |||||||
(in thousands) | ||||||||
Cost | ||||||||
Building | ||||||||
Building improvements | ||||||||
Leasehold improvements | ||||||||
Computers and electronic equipment | ||||||||
Furniture | ||||||||
Motor vehicles | ||||||||
Software | ||||||||
Total cost | ||||||||
Less: Accumulated depreciation and amortization | ( | ) | ( | ) | ||||
Property, equipment and software, net | ||||||||
For the year ended December 31, | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
(in thousands) | ||||||||||||
Research and development expenses | ||||||||||||
Sales and marketing expenses | ||||||||||||
General and administrative expenses | ||||||||||||
Total | ||||||||||||
9. | Intangible assets, net |
As of December 31, | ||||||||
2022 | 2023 | |||||||
(in thousands) | ||||||||
Amortized intangible assets with finite lives: | ||||||||
Cost: Trademarks (Note a) | ||||||||
Less: Accumulated depreciation and amortization | ||||||||
Intangible assets, net | ||||||||
Amounts |
||||
(in thousands) |
||||
Year Ending December 31,
|
||||
2024
|
||||
2025
|
||||
2026
|
||||
2027
|
||||
2028 and after
|
||||
|
|
|||
10. |
Lease |
(a) |
The components of lease expenses were as follows:
|
For the year ended December 31, |
||||||||||||
2021 |
2022 |
2023 |
||||||||||
(in thousands) |
||||||||||||
Lease cost:
|
||||||||||||
Amortization of
right-of-use |
||||||||||||
Interest of lease liabilities
|
||||||||||||
Expenses for short-term lease within 12 months
|
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Total lease cost
|
||||||||||||
|
|
|
|
|
|
(b) |
Supplemental cash flow information related to leases was as follows:
|
For the year ended December 31, |
||||||||||||
2021 |
2022 |
2023 |
||||||||||
(in thousands) |
||||||||||||
Cash paid for amounts included in the measurement of lease
|
||||||||||||
Operating cash flows from operating leases
|
||||||||||||
Right-of-use |
||||||||||||
Operating leases
|
||||||||||||
Lease liability settled through termination of lease:
|
||||||||||||
Operating leases
|
||||||||||||
Right-of-use assets disposed through termination of lease:
|
|
|
|
|||||||||
Operating leases
|
(c) |
Supplemental balance sheet information related to leases was as follows:
|
As of December 31, |
||||||||||||
2021 |
2022 |
2023 |
||||||||||
Weighted-average remaining lease term
|
||||||||||||
Operating leases
|
||||||||||||
Weighted-average discount rate
|
||||||||||||
Operating leases
|
(d) |
Maturities of lease liabilities were as follows:
|
As of December 31, |
||||
2023 |
||||
(in thousands) |
||||
Year Ending December 31,
|
||||
2024
|
||||
2025
|
||||
|
|
|||
Total undiscounted lease payments
|
||||
Less: imputed interest
|
( |
) | ||
|
|
|||
Total lease liabilities
|
||||
|
|
|
|
|
Amounts due within 12 months
|
||||
Non-current lease liability
|
11. |
Prepayments on long-term assets |
As of December 31, |
||||||||
2022 |
2023 |
|||||||
(in thousands) |
||||||||
Prepayments on buildings (Note a)
|
||||||||
Prepayments on other
non-current assets (Note b) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
12. |
Accrued liabilities and other current liabilities |
As of December 31, |
||||||||
2022 |
2023 |
|||||||
(in thousands) |
||||||||
Salary and welfare payable
|
||||||||
Other tax payables
|
||||||||
Accrued listing expenses (Note a)
|
||||||||
Others
|
||||||||
|
|
|
|
|||||
Total
|
||||||||
|
|
|
|
13. |
Share capital |
14. |
Share based compensation |
Number of RSUs |
Weighted average grant date fair value |
|||||||
US$ | ||||||||
Awarded and unvested as of December 31, 2022
|
||||||||
Granted
|
||||||||
Vested
|
||||||||
Canceled/forfeited
|
( |
) | ||||||
|
|
|
|
|||||
Awarded and unvested as of December 31, 2023
|
||||||||
|
|
|
|
|||||
Expected to vest as of December 31, 2023 (Note a)
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Number of share options | Weighted average excercise price | Weighted average remaining contractual life | ||||||||||
US$ | (in years) | |||||||||||
Outstanding as of December 31, 2022 | — | |||||||||||
Granted | ||||||||||||
Exercised | — | |||||||||||
Canceled/forfeited | ( | ) | ||||||||||
Outstanding as of December 31, 2023 | ||||||||||||
Vested and exercisable as of December 31, 2023 (Note a) | — | |||||||||||
Vested and expected to vest as of December 31, 2023 (Note b) |
For the year ended December 31, | ||
2023 | ||
Risk-free interest rate(i) | ||
Expected volatility(ii) | ||
Expected dividend yield(iii) | ||
Exercise multiple(iv) | to | |
Forfeiture rate (v) | % to | |
Fair value of underlying ordinary shares | US$ | |
Fair value of share option | US$ to US$ |
i) | Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect on the measurement date. |
ii) | The expected volatility was estimated based on the historical volatility of comparable peer public companies with a time horizon close to the contract life of the Group’s options. |
iii) | Expected dividend yield is assumed to be nil as the Group has no history or expectation of paying a dividend on its ordinary shares. |
iv) | The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Group did not have sufficient information of past employee exercise history, it has considered the statistics by making reference to a widely-accepted academic research publication. |
v) | Forfeiture rate was based on the historical data of the Group from recent years and widely-accepted academic research publications, given the Group’s limited historical record of share options. |
For the year ended December 31, | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
(in thousands) | ||||||||||||
Research and development expenses | ||||||||||||
Sales and marketing expenses | ||||||||||||
General and administrative expenses | ||||||||||||
Total | ||||||||||||
15. | Products revenue |
For the year ended December 31, | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
(in thousands) | ||||||||||||
ASIC chips products: | ||||||||||||
ASIC chips | ||||||||||||
Computing equipment (Note a) | ||||||||||||
Ancillary software and hardware | ||||||||||||
Others (Note b) | ||||||||||||
16. | Other income, net |
For the year ended December 31, | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
(in thousands) | ||||||||||||
Government grants (Note a) | ||||||||||||
Interest expense and guarantee fee | ( | ) | ( | ) | ( | ) | ||||||
Change in fair value of short-term investments | ||||||||||||
Others | ( | ) | ||||||||||
17. | Income Taxes |
(a) | Cayman Islands |
(b) | British Virgin Island |
(c) | Hong Kong Profits Tax |
(d) | Singapore |
(e) | PRC Enterprise Income Tax (“EIT”) |
(f) | PRC Withholding Income Tax on Dividends |
For the year ended December 31, | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
PRC statutory income tax rates | % | % | % | |||||||||
Effect of different tax rates available to different jurisdictions | ( | % ) | ||||||||||
Effect of preferential tax rates and tax holiday | ( | %) | ( | %) | ( | %) | ||||||
Effect of expenses not deductible for tax purposes (i) | % | % | ( | %) | ||||||||
Effect of additional deduction of research and development expense | ( | %) | ( | %) | % | |||||||
Effect of tax losses and temporary differences utilized | ( | %) | % | |||||||||
Total | % | % | % | |||||||||
(i) | Expenses not deductible for tax purposes primarily consist of share-based compensation expense and entertainment expenses exceeding the pre-tax deduction limit. |
For the year ended December 31, | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
(in thousands) | ||||||||||||
Current tax | — | |||||||||||
Deferred taxation | — | ( | ) | |||||||||
Income tax expenses/(benefit) | — | ( | ) | |||||||||
As of December 31, | ||||||||
2022 | 2023 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Accrued expense and others | ||||||||
Inventory provision | ||||||||
Impairment on prepayment | — | |||||||
Product warranty | ||||||||
Tax loss | — | |||||||
Total deferred tax assets before valuation allowance | — | |||||||
Valuation allowance | — | ( | ) | |||||
Total deferred tax assets | ||||||||
Deferred tax liabilities: | ||||||||
Accelerated tax depreciation | ( | ) | ( | ) | ||||
Total deferred tax liabilities | ( | ) | ( | ) | ||||
Presentation in the consolidate balance sheet: | ||||||||
Deferred tax assets | — | |||||||
Deferred tax liabilities | ( | ) | — | |||||
Net deferred tax assets/(liabilities) | ( | ) | ||||||
For the year ended December 31, | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | — | — | ||||||||||
Additions during the year | — | — | ||||||||||
Ending balance | — | — | ||||||||||
18. | Related party transactions |
19. | Basic and diluted net earnings per share |
For the year ended December 31, | ||||||||||||
2021 | 2022 | 2023 | ||||||||||
(in thousands, except share and per share data) | ||||||||||||
Basic and diluted net earnings per share calculation | ||||||||||||
Numerator: | ||||||||||||
Net earnings(loss) attributable to ordinary shareholders, basic and diluted | ( | ) | ||||||||||
Denominator: | ||||||||||||
Weighted-average ordinary shares outstanding, basic and diluted (1) | ||||||||||||
Net earnings per share attributable to ordinary shareholders: | ||||||||||||
Basic | ( | ) | ||||||||||
Diluted | ( | ) |
(1) | Retroactively restated for the stock subdivision as described in Note 1. |
20. | Commitments and contingencies |
21. | Subsequent events |
22. | Restricted net assets |