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Financial Statements Schedule I Financial Information of Parent Company | 12 Months Ended
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Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract] |
Financial Statements Schedule I Financial Information of Parent Company | Gyre Therapeutics, Inc. Condensed Consolidated Balance Sheets (In thousands, except shares and per share amounts)
|  | December 31, 2023 |  |  | December 31, 2022 |
Assets |  |  |  |  |  |
Current assets: |  |  |  |  |  |
Related party receivables |  | $ | 768 |  |  | $ | 3,159 |
Total current assets |  |  | 768 |  |  |  | 3,159 |
Investment in subsidiaries |  |  | 49,709 |  |  |  | 40,632 |
Total assets |  | $ | 50,477 |  |  | $ | 43,791 |
Liabilities, convertible preferred stock, and stockholders’ equity |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |
Due to related parties |  | $ | 538 |  |  | $ | 5 |
Accrued expenses and other current liabilities |  |  | 1,242 |  |  |  | 1,264 |
Total current liabilities: |  |  | 1,780 |  |  |  | 1,269 |
Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 13,151 shares and nil shares issued and outstanding at December 31, 2023 and 2022, respectively |  |  | 64,525 |  |  |  | — |
Stockholders’ (deficit) equity: |  |  |  |  |  |
Common stock, $0.001 par value, 400,000,000 shares authorized; 76,595,616 shares and 63,588,119 shares issued and outstanding at December 31, 2023 and 2022, respectively |  |  | 77 |  |  |  | 64 |
Additional paid-in capital |  |  | 68,179 |  |  |  | 32,795 |
Statutory reserve |  |  | 3,098 |  |  |  | 2,660 |
(Accumulated deficit) retained earnings |  |  | (85,538 | ) |  |  | 7,395 |
Accumulated other comprehensive loss |  |  | (1,644 | ) |  |  | (392 | )
Total stockholders’ (deficit) equity |  |  | (15,828 | ) |  |  | 42,522 |
Total liabilities, convertible preferred stock, and stockholders’ (deficit) equity |  | $ | 50,477 |  |  | $ | 43,791 |
The accompanying notes are an integral part of these condensed consolidated financial statements Gyre Therapeutics, Inc. Condensed Consolidated Statements of Operations (In thousands)
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |
Operating expenses: |  |  |  |  |  |
General and administrative |  | $ | 605 |  |  | $ | 94 |
Divestiture losses |  |  | 2,711 |  |  |  | — |
Loss before equity in (loss) income of subsidiaries |  |  | 3,316 |  |  |  | 94 |
Equity in (loss) income of subsidiaries |  |  | (89,617 | ) |  |  | 2,396 |
Net (loss) income |  | $ | (92,933 | ) |  | $ | 2,302 |
Other comprehensive (loss) income, net of tax of nil: |  |  |  |  |  |
Foreign currency translation adjustments |  |  | (837 | ) |  |  | (2,758 | )
Comprehensive loss |  | $ | (93,770 | ) |  | $ | (456 | )
The accompanying notes are an integral part of these condensed consolidated financial statements. Gyre Therapeutics, Inc. Condensed Consolidated Statements of Cash Flows (In thousands)
| Year Ended December 31, |
| 2023 |  |  | 2022 |
Operating Activities |  |  |  |  |
Net (loss) income | $ | (92,933 | ) |  | $ | 2,302 |
Adjustments to reconcile net (loss) income to net cash used for operating activities: |  |  |  |  |
Equity loss (income) of subsidiaries |  | 89,617 |  |  |  | (2,396 | )
Divestiture losses |  | 2,711 |  |  |  | — |
Changes in operating assets and liabilities: |  |  |  |  |
Due to related parties |  | 533 |  |  |  | 5 |
Net cash provided by operating activities |  | (72 | ) |  |  | (89 | )
Effect of exchange rate changes on cash and cash equivalents |  | 72 |  |  |  | 89 |
Net change in cash and cash equivalents |  | — |  |  |  | — |
Cash and cash equivalents at beginning of the period |  | — |  |  |  | — |
Cash and cash equivalents at end of period | $ | — |  |  | $ | — |
The accompanying notes are an integral part of these condensed consolidated financial statements Notes 1. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a pa rent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. 2. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. CPI, the legal acquiree and accounting acquirer of the Contributions considered the “registrant” and presented as the parent company, Gyre Therapeutics, Inc. (“Gyre”) to supplement its condensed financial statement in Schedule I. The parent company records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method, and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries”. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses. 3. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. 4. As of December 31, 2023 and 2022, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the parent company.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 205 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480922/205-10-S99-6 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 810 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481231/810-10-45-11 + Details
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