Jinxin Technology Holding Co

Operating Activities

Net cash used in operating activities was RMB2.7 million (US$0.4 million) in the six months ended June 30, 2026. The difference between our net cash used in operating activities and our net loss of RMB10.5 million (US$1.5 million) was due to the combined effect of adjustments for non-cash items and changes in working capital. Adjustments for non-cash items primarily included depreciation and amortization of office property and equipment and lease expense of RMB18.3 million (US$2.7 million). Changes in working capital mainly resulted from an increase in accounts receivable of RMB19.5 million (US$2.9 million), a decrease in contract liabilities of RMB2.8 million (US$0.4 million), and partially offset by an increase in advance to suppliers of RMB3.2 million (US$0.5 million), a decrease in inventories of RMB0.5 million (US$0.1 million), an increase in accounts payable of RMB9.9 million (US$1.5 million).

Net cash generated from operating activities was RMB14.2 million (US$2.0 million) in the six months ended June 30, 2025. The difference between our net cash provided by operating activities and our net loss of RMB21.1 million (US$2.9 million) was due to the combined effect of adjustments for non-cash items and changes in working capital. Adjustments for non-cash items primarily included depreciation and amortization of office property and equipment and lease expense of RMB20.1 million (US$2.8 million). Changes in working capital mainly resulted from a decrease in accounts receivable of RMB10.7 million (US$1.5 million), a decrease in contract liabilities of RMB5.7 million (US$0.8 million), and partially offset by an increase in advance to suppliers of RMB6.0 million (US$0.8 million), an increase in inventories of RMB4.0 million (US$0.6 million), an increase in accounts payable of RMB20.7 million (US$2.9 million).