17.

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

CONDENSED BALANCE SHEETS


	December 31,
	2013		2014
	RMB		RMB		US$

ASSETS
Current assets:
Cash and cash equivalents		630,670		234,034		37,719
Term deposits		—		685,633		110,504
Prepaid expenses and other current assets		187		7,591		1,223
Due from subsidiaries		11,771		—		—

Total current assets		642,628		927,258		149,446

Non-current assets:
Other non-current assets		—		8,421		1,357
Investment in subsidiaries		1,818,025		2,737,009		441,126

Total non-current assets		1,818,025		2,745,430		442,483

Total assets		2,460,653		3,672,688		591,929


LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other payables		20,707		4,772		769
Payable for repurchase of common stock		227,015		—		—
Due to subsidiaries				2,493		402
Due to related parties		567		—		—

Total current liabilities		248,289		7,265		1,171

Total liabilities		248,289		7,265		1,171


Commitments and Contingencies

Shareholders’ equity:
Class A ordinary shares(par value of US$0.01 per share; 99,931,211,060 shares authorized; 36,347,496 and 48,777,835 shares issued and outstanding as of December 31, 2013 and 2014, respectively)		2,472		3,301		532
Class B ordinary shares(par value US$0.01 per share; 68,788,940 shares authorized; 68,788,940 and 61,824,328 shares issued and outstanding as of December 31, 2013 and 2014, respectively)		4,677		4,183		674
Additional paid-in capital		1,949,013		2,649,111		426,959
Accumulated other comprehensive income		1,986		5,932		956
Retained earnings		254,216		1,002,896		161,637


Total shareholders’ equity		2,212,364		3,665,423		590,758


Total liabilities and shareholders’ equity		2,460,653		3,672,688		591,929

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME


	Year ended December 31,
	2012			2013			2014
	RMB			RMB			RMB			US$

Operating expenses:
General and administrative expenses		(14,638	)		(1,125	)		(9,178	)		(1,479	)

Operating losses		(14,638	)		(1,125	)		(9,178	)		(1,479	)
Interest income		—			—			4,973			802
Equity in income of subsidiaries		227,519			457,287			752,885			121,342

Income before income taxes		212,881			456,162			748,680			120,665
Income tax expense		—			—			—			—

Net income		212,881			456,162			748,680			120,665


Other comprehensive income, net of tax of nil
Foreign currency translation adjustments		252			1,734			3,946			636

Comprehensive income		213,133			457,896			752,626			121,301

CONDENSED STATEMENTS OF CASH FLOWS


	Year ended December 31,
	2012		2013			2014
	RMB		RMB			RMB			US$

Net cash used in operating activities		—		(3,294	)		(8,908	)		(1,436	)

Net cash used in investing activities		—		—			(796,209	)		(128,326	)

Net cash generated from financing activities		—		632,865			404,754			65,235

Effect of exchange rate changes on cash and cash equivalents		—		1,099			3,727			600


Net increase(decrease) in cash and cash equivalents		—		630,670			(396,636	)		(63,927	)
Cash and cash equivalents at beginning of year		—		—			630,670			101,646

Cash and cash equivalents at end of year		—		630,670			234,034			37,719

(a)

Basis of accounting

For the Company only condensed financial information, the Company records its investment in its subsidiaries and VIEs under the equity method of accounting as prescribed in ASC 323-10, Investments-Equity Method and Joint Ventures: Overall. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries” and share of their income as “Equity in income of subsidiaries” on the condensed statements of comprehensive income. The parent company’s condensed financial statements should be read in conjunction with the Company’s consolidated financial statements.

(b)

Commitments

The Company does not have any significant commitments or long-term obligations as of any of the years presented.