6-K - JDZG - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2025

Commission File Number: 001-42098

JIADE LIMITED

18/F, Block D, Huirong Plaza, No. 88, Section 3, Jinhua Road

Jinjiang District, Chengdu City, Sichuan Province

The People’s Republic of China

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Explanatory Note

JIADE LIMITED, a Cayman Islands exempted company (the “Company”), is furnishing its unaudited financial statements and notes for the six months ended June 30, 2025. The financial statements and notes are attached as Exhibit 99.1 to this report. Management’s Discussion and Analysis of Financial Condition and Results of Operations for the six months ended June 30, 2025 is attached as Exhibit 99.2 to this report.

Exhibit Index

Exhibit No.		Description
99.1		Unaudited Condensed Consolidated Financial Statements and Notes of JIADE LIMITED for the Six Months Ended June 30, 2025 and 2024
99.2		Management’s Discussion and Analysis of Financial Condition and Results of Operations
101. INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	JIADE LIMITED
Date: December 17, 2025	By:	/s/ Yuan Li
	Name:	Yuan Li
	Title:	Co-Chief Executive Officer

JIADE LIMITED_2025-06-30

Table of Contents Exhibit 99.1

JIADE LIMITED

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TABLE OF CONTENTS


CONTENTS		PAGE(S)

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND JUNE 30, 2025		F-1

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025		F-2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025		F-3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025		F-4

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS		F-5

Table of Contents JIADE LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		USD
		Audited		Unaudited		Unaudited
CURRENT ASSETS:	****		****		****
Cash and cash equivalents		3,918,146		7,902,053		1,103,084
Accounts receivable, net		10,564,030		8,421,851		1,175,645
Deferred offering costs		—		1,487,976		207,713
Prepayment and other current assets		12,104,106		21,253,616		2,966,890
Due from related parties		4,439,705		17,558		2,451
TOTAL CURRENT ASSETS		31,025,987		39,083,054		5,455,783
NON-CURRENT ASSETS
Property and equipment, net		580,850		775,180		108,211
Intangible assets, net		16,943,816		17,276,202		2,411,665
Prepayment for acquisition		32,000,000		—		—
Right-of-use assets		768,042		1,225,115		171,019
Goodwill		—		26,629,691		3,717,362
Deferred tax assets		15,330		247,902		34,606
TOTAL ASSETS	****	81,334,025	****	85,237,144	****	11,898,646
LIABILITIES AND EQUITY	****		****		****
CURRENT LIABILITIES:	****		****		****
Bank loans		4,000,000		9,740,000		1,359,652
Payroll payables		1,045,829		1,559,791		217,738
Other payables		1,352,992		2,692,431		375,849
Deferred revenue		620,000		733,665		102,416
Lease liabilities		496,601		629,392		87,860
Due to related parties		275,100		245,000		34,201
Taxes payable		1,973,260		1,799,309		251,174
TOTAL CURRENT LIABILITIES		9,763,782		17,399,588		2,428,890
NON-CURRENT LIABILITIES
Long-term loans		—		1,000,000		139,595
Lease liabilities		271,442		562,575		78,532
TOTAL LIABILITIES		10,035,224		18,962,163		2,647,017
COMMITMENTS AND CONTINGENCIES EQUITY	****		****		****
SHAREHOLDERS’ EQUITY:	****		****		****
Class A ordinary shares, US$0.0001 par value, 395,000,000 shares authorized, 2,014,893 shares and 2,014,893 shares issued as of December 31, 2024 and June 30, 2025, respectively*		1,445		1,445		201
Class B ordinary shares, US$0.0001 par value, 75,000,000 shares authorized, 1,052,063 shares and 1,052,063 shares issued as of December 31, 2024 and June 30, 2025, respectively*		754		754		105
Additional paid-in capital		50,180,663		50,180,663		7,004,950
Statutory reserves		2,054,975		2,054,975		286,863
Ordinary shares subscribed		(1,993)		(1,993)		(278)
Retained earnings		18,494,772		14,013,332		1,956,186
Accumulated other comprehensive income (loss)		418,491		(259,952)		(36,288)
TOTAL JIADE LIMITED SHAREHOLDERS’ EQUITY	****	71,149,107	****	65,989,224	****	9,211,739
NON-CONTROLLING INTERESTS	****	149,694	****	285,757	****	39,890
TOTAL SHAREHOLDERS’ EQUITY	****	71,298,801	****	66,274,981	****	9,251,629
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	****	81,334,025	****	85,237,144	****	11,898,646
*	Shares have been retroactively adjusted to reflect the decreased number of shares resulting from the Share Consolidation, Change of Authorized Share Capital and Issue of Dual of Class Shares effective from June 24, 2025.
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Table of Contents JIADE LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)


		For the six months ended June 30,
		2024		2025	2025
		RMB		RMB	USD
REVENUE	****	8,921,488	****	9,383,590	1,309,899
Cost of revenue		400,313		5,708,984	796,943
GROSS PROFIT		8,521,175		3,674,606	512,956
OPERATING EXPENSES	****		****
Selling expenses		259,040		317,169	44,275
General and administrative expenses		1,550,235		7,490,194	1,045,591
Research and development expenses		213,122		873,959	122,000
Total operating expenses		2,022,397		8,681,322	1,211,866
INCOME / (LOSS) FROM OPERATIONS	****	6,498,778	****	(5,006,716)	(698,910)
OTHER INCOME (EXPENSES)	****		****
Interest income		15,639		442	62
Interest expense		(49,642)		(109,609)	(15,301)
Other income/(loss), net		(288,050)		572,740	79,951
Total other income (expenses), net	****	(322,053)	****	463,573	64,712
INCOME / (LOSS) BEFORE INCOME TAXES	****	6,176,725	****	(4,543,143)	(634,198)
INCOME TAXES PROVISION (BENEFIT)		957,599		(197,766)	(27,607)
NET INCOME / (LOSS)	****	5,219,126	****	(4,345,377)	(606,591)
Less: net income attributable to non-controlling interest		45,579		136,063	18,994
NET INCOME / (LOSS) ATTRIBUTABLE TO JIADE LIMITED’S SHAREHOLDERS	****	5,173,547	****	(4,481,440)	(625,585)

OTHER COMPREHENSIVE INCOME (LOSS)	****		****
Foreign currency translation adjustment		408,495		(678,443)	(94,707)
TOTAL COMPREHENSIVE INCOME / (LOSS)	****	5,627,621	****	(5,023,820)	(701,298)
Less: comprehensive income attributable to non-controlling interest	****	45,579	****	136,063	18,994
TOTAL COMPREHENSIVE INCOME / (LOSS) ATTRIBUTABLE TO JIADE LIMITED’S SHAREHOLDERS	****	5,582,042	****	(5,159,883)	(720,292)
BASIC AND DILUTED EARNINGS / (LOSS) PER SHARE ATTRIBUTABLE TO THE COMPANY*	****		****
Basic and diluted	****	1.69	****	(1.46)	(0.20)
Weighted average number of shares outstanding
Basic and diluted	****	3,066,956	****	3,066,956	3,066,956
*	Shares have been retroactively adjusted to reflect the decreased number of shares resulting from the Share Consolidation, Change of Authorized Share Capital and Issue of Dual of Class Shares effective from June 24, 2025.
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Table of Contents JIADE LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY


	Ordinary Shares														Accumulated		Total
	Class A*				Class B*						Additional				Other		JIADE LIMITED’s				Total
			Issued				Issued		Subscribed		Paid-in		Statutory		Comprehensive	Retained	Shareholders’		Non-controlling		Shareholders’
	Shares		Amount		Shares		Amount		Amount		Capital		Reserve		Income (loss)	Earnings	Equity		Interests		Equity
Balance as of December 31, 2023	1,727,393	****	1,239	****	1,052,063		754		(1,993)	****	2,729,084		1,494,652		—	13,451,868	17,675,604	****	146,139	****	17,821,743
Issue of ordinary shares upon Initial Public offering	250,000		179		—		—		—		39,420,034		—		—	—	39,420,423		—		39,420,213
Issue of ordinary shares upon exercise of underwriters’ over-allotment option	37,500		27		—		—		—		7,865,645		—		—	—	7,865,672		—		7,865,672
Effect of the change of shares of par value	—				—		—		—		165,990		—		—	—	165,990		—		165,990
Net income for the period	—				—		—		—		—		—		—	5,173,547	5,173,547		45,579		5,219,126
Statutory reserves	—				—		—		—		—		517,355		—	(517,355)	—		—		—
Currency translation differences															408,495	—	408,495		—		408,495
Balance as of June 30, 2024	2,014,893	****	1,445	****	1,052,063		754		(1,993)	****	50,180,663		2,012,007		408,495	18,108,060	70,709,431	****	191,718	****	70,901,149
Balance as of December 31, 2024	2,014,893		1,445		1,052,063		754		(1,993)	****	50,180,663		2,054,975		418,491	18,494,772	71,149,107		149,694		71,298,801
Net income for the period	—				—		—		—		—		—		—	(4,481,440)	(4,481,440)		136,063		(4,345,377)
Currency translation differences	—				—		—		—		—		—		(678,443)	—	(678,443)		—		(678,443)
Balance as of June 30, 2025	2,014,893	****	1,445	****	1,052,063		754		(1,993)	****	50,180,663		2,054,975		(259,952)	14,013,332	65,989,224	****	285,757	****	66,274,981
Balance as of June 30, 2025 (US)	2,014,893	****	201	****	1,052,063		105		(278)	****	7,004,950		286,863		(36,288)	1,956,186	9,211,739	****	39,890	****	9,251,629

All values are in US Dollars.

*	Shares have been retroactively adjusted to reflect the decreased number of shares resulting from a share consolidation and change of authorized share capital effective from June 24, 2025.

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Table of Contents JIADE LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


		For the six months ended June 30,
		2024		2025	****	2025
		RMB		RMB		US$
CASH FLOWS FROM OPERATING ACTIVITIES:	****		****
Total net income (loss)		5,219,126		(4,345,377)		(606,591)
Adjustments to reconcile net income to net cash provided by / (used in) operating activities:
Depreciation and amortization		83,741		767,121		107,086
Non-cash operating lease		105,879		548,350		76,547
Gain from termination of operating lease		—		(18,068)		(2,522)
Net loss on disposal of property and equipment		—		17,115		2,389
Credit loss for accounts receivable		—		1,550,481		216,439
Unrealized foreign exchange (gain) / loss		139,594		(678,405)		(94,702)
Deferred tax		—		(232,572)		(32,466)
Changes in operating assets and liabilities:
Accounts receivable		(1,579,140)		591,698		82,598
Prepayment and other current assets		(912,207)		(2,400,416)		(335,085)
Other long-term assets		46,307		—		—
Accounts payable		24,725		—		—
Other payables		(521,571)		(391,533)		(54,656)
Payroll payables		262,274		362,508		50,604
Deferred revenue		(58,293)		(103,059)		(14,386)
Change in lease liabilities – operating lease		(67,200)		(575,385)		(80,321)
Taxes payable	****	1,013,430		(225,696)		(31,506)
NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES	****	3,756,665	****	(5,133,238)		(716,572)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(2,050)		(30,314)		(4,232)
Purchase of intangible assets	****	—		(943,397)		(131,693)
Proceeds from disposal of property and equipment	****	—		1,000		140
Net cash acquired from acquisitions		—		445,823		62,234
NET CASH USED IN INVESTING ACTIVITIES		(2,050)	****	(526,888)		(73,551)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank loans		—		7,740,000		1,080,462
Repayments of bank loans		(1,000,000)		(1,000,000)		(139,595)
Proceeds from issuance of ordinary shares upon the completion of IPO		54,481,760		—		—
Proceeds from issuance of ordinary shares upon exercise of underwriters’ over-allotment option	****	8,690,520		—		—
Deferred costs related to initial public offering	****	(10,515,293)		(1,487,976)		(207,713)
Net proceeds from related parties	****	7,300		4,392,047		613,106
NET CASH PROVIDED BY FINANCING ACTIVITIES	****	51,664,287	****	9,644,071		1,346,260
EFFECT OF FOREIGN EXCHANGE RATE ON CASH AND CASH EQUIVALENT		135,753		(38)		(5)
NET INCREASE IN CASH AND CASH EQUIVALENTS		55,554,655		3,983,907		556,132
TOTAL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	****	7,081,937	****	3,918,146		546,952
TOTAL CASH AND CASH EQUIVALENTS, END OF PERIOD		62,636,592	****	7,902,053		1,103,084
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest expense		49,642		109,609		15,301
Cash paid for income tax		—		11,434		1,596
Supplemental Schedule of Non-Cash Investing and Financing Activities
Right-of-use assets obtained in exchange for new operating lease liabilities		—		1,303,459		181,956
*	The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — Organization and principal activities

JIADE LIMITED is a holding company that was incorporated under the laws of the Cayman Islands on February 20, 2023 (“JIADE LIMITED” or the “Company”). JIADE LIMITED and its subsidiaries (collectively referred to as the “Group”) specialize in providing one-stop comprehensive education supporting services to adult education institutions, through a wide range of software platform and auxiliary solutions, and safety technology training for personnel. One-stop comprehensive education supporting services encompass exam administration services and teaching support services throughout the entire teaching cycle. Specifically, the Group offers pre-enrollment guidance on school/major selection and application strategy development, training for entrance exams, and assistance in the application process. The Group also provides offline tutoring, exam administration services, guidance on graduation thesis, and social practice assistance included in the one-stop comprehensive education supporting services in the People’s Republic of China (“China” or the “PRC”). Safety technology training services for personnel are primarily offer initial training, refresher training, and certification renewal programs for these types of operations, with both theoretical instruction and practical training components. After obtaining the required certificates issued by the Ministry of Emergency Management of China, personnel are required to complete refresher training every three years and certification renewal training every six years. As a result, the Group benefit from a high rate of repeat business, providing a recurring revenue stream.

JIADEZHIGAO Limited (“Jiadezhigao HK”) was incorporated in accordance with the laws and regulations of Hong Kong on March 30, 2023 and is a wholly owned subsidiary of the Company.

Shenzhen Kebiao Technology Co., Ltd. (“Shenzhen Kebiao”) was incorporated in China on May 23, 2023 and a wholly owned subsidiary of Jiadezhigao HK.

Sichuan Jiade Zhigao Technology Co., Ltd. (“Jiade Zhigao”) was incorporated in China on May 6, 2022 and has been controlled by Mr. Yuan Li and Ms. Zhirong Zhou.

Sichuan Kebiao Technology Co., Ltd. (“Kebiao Technology”), a limited liability company established in Chengdu City, Sichuan Province, China on April 28, 2020, which has been controlled by Mr. Yuan Li and Ms. Zhirong Zhou since inception.

Wismass International Holdings Limited (“WISMASS HK”) was incorporated in accordance with the laws and regulations of Hong Kong on October 24, 2022 and is a wholly owned subsidiary of Wismass International Holdings Limited (BVI) (“WISMASS BVI”). WISMASS BVI was incorporated in accordance with the laws and regulations of British Virgin Islands on August 17, 2022.

Sichuan Kunyuan Safety Technology Services Co., Ltd. (“Kunyuan”) was incorporated in China on March 25, 2021 and a subsidiary of Jiade Zhigao since January 9, 2025.

Sichuan Jiazhi Taizhang Safety Technology Co., Ltd (“Jiazhi”) was incorporated in China on April 28, 2023 and a wholly owned subsidiary of Jiade Zhigao since January 26, 2025.

Reorganization

In preparation of the Company’s initial public offering (the “IPO”) in the United States, the following transactions were undertaken to reorganize the legal structure of the Company. The Company was incorporated in connection with a group reorganization (the “Reorganization”).

On December 14, 2022, Kebiao Technology and Jiade Zhigao entered into an equity purchase agreement with Kebiao Technology’s shareholders, through which Kebiao Technology became a wholly owned subsidiary of Jiade Zhigao. On June 7, 2023, Shenzhen Kebiao acquired an aggregate of 82% of the equity interests in Jiade Zhigao from Mr. Yuan Li, Ms. Zhirong Zhou, Sichuan Zhongtaizhigao Information Technology Consulting Partnership, and Sichuan Jiaduozhigao Information Technology Consulting Partnership in exchange for newly issued 1% of the equity interest in Shenzhen Kebiao, through an equity transfer agreement. As a result, Shenzhen Kebiao was 99% owned by Jiadezhigao HK, with the remaining 1% collectively owned by Mr. Yuan Li, Ms. Zhirong Zhou, Sichuan Zhongtaizhigao Information Technology Consulting Partnership, and Sichuan Jiaduozhigao Information Technology Consulting Partnership. F-5

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — Organization and principal activities (continued)

Reorganization (continued)

On November 30, 2022, WISMASS HK entered into a share transfer agreement with Yuan Li, who was then the 51.33% owner of Jiade Zhigao, to acquire 9% of the equity interests in Jiade Zhigao from Mr. Yuan Li for a total consideration of RMB180,000. On May 26, 2023, WISMASS HK entered into a share subscription agreement with Jiade Zhigao to purchase newly issued 9.8901% of the equity interests in Jiade Zhigao with a total consideration of RMB751,648, through which WISMASS HK has in total an 18% equity interest in Jiade Zhigao. On June 30, 2023, Jiade Cayman entered into a share swap agreement with WISMASS BVI to acquire 100% of the equity interests in WISMASS HK from WISMASS BVI in exchange for 4,035,471 newly issued ordinary shares of Jiade Cayman, through which WISMASS HK became a wholly owned subsidiary of the Company and WISMASS BVI has 18.1488% equity interest in the Company.

On December 24, 2024, Jiade Zhigao entered into an equity transfer agreement with Chengdu Meirusi Technology Co., Ltd. (“Meirusi”), which is a PRC limited liability company holding 75% of the equity interests in Kunyuan, to acquire 75% of the equity interests in Kunyuan for a total consideration of RMB9,000,000. On January 9, 2025, Meirusi and Kunyuan both fulfilled the obligations under the equity transfer agreement signed on December 24, 2024. Thereupon Kunyuan became a subsidiary of the Company as of January 9, 2025.

On December 24, 2024, Jiade Zhigao entered into an equity transfer agreement with Meirusi, which entity holds 100% of the equity interests in Jiazhi, to acquire 100% of the equity interests in Jiazhi for a total consideration of RMB23,000,000. On January 26, 2025, Meirusi and Jiazhi both fulfilled the obligations under the equity transfer agreement signed on December 24, 2024. Thereupon, Jiazhi became a wholly subsidiary of the Company as of January 26, 2025.

As all the entities involved in the process of the Reorganization are under common ownership of Jiade Zhigao’s shareholders before and after the Reorganization, except for Kunyuan and Jiazhi, the common control of which started from January 9, 2025 and January 26, 2025, respectively, the Reorganization is accounted for in a manner similar to a pooling of interests with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts. Therefore, the accompanying unaudited condensed consolidated financial statements were prepared as if the corporate structure of the Group had been in existence since the beginning of the periods presented. F-6

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — Organization and principal activities (continued)

Reorganization (continued)

As of December 31, 2024 and June 30, 2025, the Group’s condensed consolidated financial statements reflected the activities for each of the following entities.


						% of		% of
		Date of		Place of		Ownership as of		Ownership as of
Name of Entity		Incorporation		Incorporation		December 31, 2024		June 30, 2025		Principal Activities
JIADE LIMITED		February 20, 2023		Cayman Islands		N/A		N/A		Investment Holding
JIADEZHIGAO Limited (“Jiadezhigao HK”)		March 30, 2023		Hong Kong		100	%	100	%	Investment Holding
WISMASS International Holdings Limited (“WISMASS HK”)		October 24, 2022		Hong Kong		100	%	100	%	Investment Holding
Shenzhen Kebiao Technology Co., Ltd (“Shenzhen Kebiao”)		May 23, 2023		PRC		99.95	%	99.95	%	Providing one-stop comprehensive education supporting services
Sichuan Jiadezhigao Technology Limited (“Jiade Zhigao”)		May 6, 2022		PRC		99.96	%	99.96	%	Providing one-stop comprehensive education supporting services
Sichuan Kebiao Technology Co., Ltd. (“Kebiao Technology”)		April 28, 2020		PRC		99.96	%	99.96	%	Providing one-stop comprehensive education supporting services
Sichuan Kunyuan Safety Technology Services Co., Ltd. (“Kunyuan”)		March 25, 2021		PRC		N/A		74.97	%	Providing safety technology training services
Sichuan Jiazhi Taizhang Safety Technology Co., Ltd (“Jiazhi”)		April 28, 2023		PRC		N/A		99.96	%	Providing safety technology training services

Note 2 — Summary of significant accounting policies

Basis of consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the U.S. (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities Exchange Commission.

Principles of consolidation

The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the Hong Kong-registered entities, and PRC-registered entities directly or indirectly owned by the Company. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded in the unaudited consolidated income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate.

A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meetings of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. F-7

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

Uses of estimates and assumptions

In preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods presented. These estimates are based on information as of the date of the unaudited condensed consolidated financial statements. The estimates required to be made by management include, but are not limited to, useful lives of property and equipment and intangible assets, the incremental borrowing rate used in operating lease right-of-use assets and lease liabilities, the valuation of accounts receivable, the recoverability of long-lived assets, deferred tax assets, goodwill and contingencies. Actual results could differ from those estimates.

Cash and cash equivalents

Cash and cash equivalents represent demand deposits placed with banks and cash on hand, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less and are readily convertible to known amounts of cash. The Group maintains the majority of its bank accounts in the PRC. Cash balances in bank accounts in the PRC are protected under Deposit Protection Scheme in accordance with the Deposit Protection Scheme Ordinance. The maximum protection is up to RMB500,000 per depositor per Scheme member, including both principal and interest. As of December 31, 2024 and June 30, 2025, cash and cash equivalents balance in the PRC were RMB3,910,713 and RMB7,897,292 (US$1,102,419), respectively.

Fair Value of Financial Instruments

ASC Topic 825-10, Financial instruments – overall: Recognition and measurement of financial assets and financial liabilities (“ASC 825-10”) requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

●	Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
●	Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.
---	---
●	Level 3 — inputs to the valuation methodology are unobservable.
---	---

Unless otherwise disclosed, the fair value of the Group’s financial instruments, including cash and cash equivalents, accounts receivable, due from related parties, accounts payable, deferred revenue, other payables, bank loans, and due to related parties, approximates their recorded values due to their short-term maturities.

The Group determined that the carrying value of the lease liabilities approximated their fair value as the interest rates used to discount the contracts approximate market rates. The Group noted no transfers between levels during any of the periods presented. The Group did not have any instruments that were measured at fair value on a recurring or non-recurring basis as of December 31, 2024 and June 30, 2025. F-8

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

Accounts receivable and allowance for credit loss

On January 1, 2023, the Group adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Group changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The adoption of the guidance had no impact on the allowance for credit losses for accounts receivable.

Prior to the Group’s adoption of ASU 2016-13, accounts receivable are presented net of allowance for doubtful accounts. The Group usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Group maintains allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyses historical bad debt, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to estimate the allowance. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote.

After the adoption of ASU 2016-13, the Group maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the consolidated statements of income and comprehensive income. The Group’s estimation of allowance for credit losses considers factors such as historical credit loss experience, age of receivable balances, current market conditions, reasonable and supportable forecasts of future economic conditions, as well as an assessment of receivables due from specific identifiable counterparties to determine whether these receivables are considered at risk or uncollectible. For the six months ended June 30, 2024 and 2025, the expected credit loss amounted to nil and RMB1,550,481 (US$216,439), respectively.

Deferred offering costs

Deferred offering costs consist principally of legal, accounting and consulting costs in connecting with the proposed public offering. Such costs are deferred until the closing of the public offering, at which time the deferred costs are offset against the offering proceeds. These costs were charged against the gross proceeds of the public offering during the six months ended June 30, 2025 upon the Company’s completion of its public offering.

Deferred revenue

Deferred revenue represents the upfront payments received upon the signing of a contract for one-stop comprehensive education supporting services with adult education institutions and the upfront payments received from personnel for safety technology training services. The deferred revenue is subsequently released into revenue once the customers receive and consume benefits of such services and is released using straight-line method based on the contract term. As of December 31, 2024 and June 30, 2025, the deferred revenue amounted to RMB620,000 and RMB733,665 (US$102,416), respectively.

Contingencies

In the normal course of business, the Group is subject to contingencies, including legal proceedings and claims arising out of its business that relate to a wide range of matters, such as government investigations and tax matters. The Group recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Group may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. F-9

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

Property and equipment, net

Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided in the amounts sufficient to depreciate the cost of the related assets over their useful lives using the straight- line method, as follows:


		Useful life
Motor vehicles		4 years
Office equipment		3 years
Leasehold improvement		Over shorter of the lease term and the remining useful life

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expenses as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the unaudited consolidated statements of income and other comprehensive income as other income or expenses.

Goodwill

Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Group’s acquisitions of interests in its consolidated subsidiaries.

Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event or circumstances change occurs that indicate the asset might be impaired. Under ASC 350-20-35 – Intangibles – Goodwill and Other – Subsequent Measurement, the Group has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly.

If the Group believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the quantitative analysis indicates the carrying value of a reporting unit exceeds its fair value, the Group measures any goodwill impairment losses as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

As of June 30, 2025, the Group performed a qualitative assessment of its goodwill under Kunyuan and Jiazhi’s operation and concluded that there were no indicators of impairment.

Impairment of long-lived assets other than goodwill

The Group evaluates the recoverability of its long-lived assets, including property and equipment, intangible assets and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of its asset may not be fully recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to the estimated undiscounted future cash flows expected to result from the use of the asset and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the asset, the Group recognizes an impairment loss based on the excess of the carrying amount of the asset over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the asset, when the market prices are not readily available. The adjusted carrying amount of the asset is the new cost basis and is depreciated over the asset’s remaining useful life. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For the six months ended June 30, 2024 and 2025, no impairment of long-lived assets was recognized. F-10

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

Leases

The Group leases offices in the PRC under operating leases. The Group determines whether an arrangement constitutes a lease at inception and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on its incremental borrowing rate, as the rates implicit in its leases are not determinable. The Group’s incremental borrowing rate is the estimated rate the Group would be required to pay for collateralized borrowing equal to the total lease payments over the term of the lease. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing rent expenses when the lessor makes the underlying asset available to the Group.

For short-term leases, the Group records operating lease expenses in its consolidated statements of Income and comprehensive income on a straight-line basis over the lease term.

The Group adopted ASC Topic 842, Lease (“ASC 842”) on January 1, 2021, using the modified retrospective method. The Group determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. The Group’s leases do not contain any material residual value guarantees or material restrictive covenants.

As the lessee, the Group recognizes in the unaudited condensed consolidated balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, the Group makes an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities and recognizes lease expenses for such lease generally on a straight-line basis over the lease term. For the six months ended June 30, 2024 and 2025, the Group did not have any lease expenses of the leases with a term of 12 months or less.

Operating lease assets are included within right-of-use assets — operating lease, and the corresponding operating lease liabilities are included within operating lease liabilities on the condensed consolidated balance sheets as of December 31, 2024 and June 30, 2025.

Intangible Assets, net

Intangible assets consist primarily of software purchased and copyrights purchased. Software purchased and under development for internal use, including fees paid to third parties for services provided to develop the software, are stated at cost less accumulated amortization and impairment, if any. Generally, software is amortized using the straight-line method over its estimated useful life, which is typically 5 to 10 years. The estimated useful lives of amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. Copyrights represent the copyright certificate applied for vocational education and are initially stated at cost and amortized over their estimated useful lives. However, if the copyrights are not expected to generate future economic benefits at the time of recognition, amortization is deferred until such time as economic benefits are anticipated to begin.

Amortization is provided in the amounts sufficient to depreciate the cost of the related assets over their useful lives using the straight-line method, as follows:

		Useful ** life**
Software		5 to 10 years
Copyrights		10 years

F-11

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

Revenue recognition

The Group adopted ASC 606 for all periods presented. Accordingly, the unaudited condensed consolidated financial statements for the six months ended June 30, 2024 and 2025 are presented under ASC 606. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is the transaction price the Group expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Group applies the following steps:

Step 1: Identify the contract (s) with a customer;

Step 2: Identify the performance obligations in the contract;

Step 3: Determine the transaction price;

Step 4: Allocate the transaction price to the performance obligations in the contract; and

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

One-stop comprehensive education supporting services

The Group enters into service contracts with adult education institutions to provide one-stop comprehensive education supporting services. It is within the scope of the revenue recognition standard that the essence of such contractual arrangements involves the Group providing one-stop comprehensive education supporting services to adult education institutions, and those services or activities are considered part of the Group’s ordinary business operations and are exchanged for compensation. Accordingly, the Group identifies its customers as the adult education institutions to which it provides services. One-stop comprehensive education supporting services encompass exam administration services and teaching support services throughout the entire teaching cycle from pre-enrollment to post-graduation. Specifically, the Group offers pre-enrollment guidance on school/major selection and application strategy development, training for entrance exams, and assistance in the application process. Additionally, the Group provides offline tutoring, exam administration services, and analysis of students’ learning progress throughout the course of study, and the Group also offers post-graduation guidance on graduation thesis, and social practice assistance. The Group determined the transaction price based on customer demand, effect of competitors on the Group’s services, the number of students to be served and other market factors. The transaction price does not change, once the Group has verified the number of students to be served with adult education institutions. The Group currently does not have any modification to the contract and the contracts currently do not have any variable consideration.

The Group provides one-stop comprehensive education supporting services from pre-enrollment services to post-graduation services. The adult education institutions take all the comprehensive education supporting services and without the comprehensive services the Group provides, the adult education institutions’ ability to benefit from the one-stop comprehensive education supporting services would be significantly limited over the contract term. These comprehensive services need to be combined into a single performance obligation because they are not separately identifiable in the contract. A customer obtains control of the service if it has the ability to direct the use of and obtain substantially all of the remaining benefits from that service. The Group typically verifies the number of students served with the adult education institutions at the beginning of the year then issues settlement statements to the adult education institutions and, upon receipt of the adult education institutions’ services confirmation, the Group issues a bill to the customers. The Group satisfies its performance obligations to provide the comprehensive services to the adult education institutions throughout the terms of the contract. Therefore, the revenue from such services is recognized over the contract term on a monthly straight-line basis as adult education institutions receive and consume the benefits of such services. F-12

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

One-stop comprehensive education supporting services (continued)

The Group applies the practical expedient in ASC 606 that permits the Group to not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the period as the Group’s contracts have an expected length of one year or less. The Group also applies the practical expedient in ASC 606 that permits the recognition of incremental costs of obtaining contracts as an expense when incurred if the amortization period of such costs is one year or less. These costs are included in direct costs of revenue under costs and expenses. The Group uses independent contractors and third-party companies in the performance of its education supporting services. The Group evaluates who controls the education supporting services to determine whether its performance obligation is to transfer services to the customer or to arrange for services to be provided by another party. The Group determined it acts as the principal for its education supporting services performance obligation, since it is in control of establishing the prices for these services and managing all aspects of services delivered to the institutions’ students. The Group determined it acts as the agent for textbooks ordering and delivery services as the Group does not have the control of establishing the prices and does not bear the inventory risk.

Safety technology training services

The Group enters into service contracts with personnel or institutions to provide safety technology training services. The safety technology training services for personnel encompass initial training, refresher training, and certification renewal programs for these types of operations, with both theoretical instruction and practical training components. The Group determined the transaction price based on customer demand, effect of competitors on the Group’s services and other market factors. The transaction price does not change, once the Group has verified the type of training services with the personnel. The Group currently does not have any modification to the contract and the contracts currently do not have any variable consideration.

The Group typically verifies the type of the training services with the personnel during the registration stage and issues receipts to customers. The Group fulfills its performance obligations by providing safety technology training services to the personnel throughout the entire training process. Therefore, the revenue from safety technology training services is recognized over the training period on a straight-line basis.

Online course services

The Group’s online course services revenue primarily generated from authorizing the developed course on a third-party online learning platform. The Group determined the transaction price based on customer demand, effect of competitors on the Group’s services and other market factors. The transaction price does not change, once the Group has signed the contract with the third-party platform, and the contracts currently do not have any variable consideration.

The Group satisfies its performance obligations by granting registered personnel access to the developed courses on the learning platform. Revenue is recognized when the personnel can directly use the learning platform and derive all benefit from it while providing services. Therefore, the revenue is recognized at a point in time when customer is able to direct use of and obtain substantially all of the benefits from the learning platforms at the time the services are delivered.

The determination of whether revenues should be reported on a gross or net basis is based on the Group’s assessment of whether it is the principal or an agent in the transaction in accordance with ASC 606-10-55, Revenue from Contracts with Customers – Implementation Guidance and Illustrations, and depends on whether its performance obligation is to transfer services to the customer or to arrange for services to be provided by another party. The Group determined it acts as the principal for its safety technology training services performance obligation since it is in control of establishing the prices for these services and managing all aspects of services delivered to the personnel. F-13

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

Online course services (continued)

The following table disaggregates the revenue for the six months ended June 30, 2024 and 2025 are as follows:


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		US$
Revenue by services line
Audit education supporting services		8,921,488		5,671,628		791,729
Safety technology training services		—		3,503,890		489,124
Online course services		—		208,072		29,046
Total revenue		8,921,488		9,383,590		1,309,899


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		US$
Revenue by recognition method
Revenue recognized over time		8,921,488		9,175,518		1,280,853
Revenue recognized at a point in time		—		208,072		29,046
Total revenue		8,921,488		9,383,590		1,309,899

Value added tax (“VAT”)

Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates of 6%. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in tax payables. All of the VAT returns filed by the Group’s subsidiaries in the PRC remain subject to examination by the tax authorities for five years from the date of filing.

Income taxes

The Group follows the liability method of accounting for income taxes in accordance with ASC740, Income Taxes (“ASC 740”). The Group accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the unaudited condensed consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes were incurred during the six months ended June 30, 2024 and 2025. All of the tax returns of the Group’s subsidiaries in the PRC remain subject to examination by the tax authorities for five years from the date of filing. F-14

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

Employee defined contribution plan

Full-time employees of the Group in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Group make contributions to the government for these benefits based on government prescribed percentage of the employee’s salaries. The Group has no legal obligation for the benefits beyond the contributions. The total amount was expensed as incurred. For the six months ended June 30, 2024 and 2025, employee welfare contribution expenses amounted to RMB220,957, and RMB481,920 (US$67,273), respectively.

Related parties

The Group adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation.

Segment reporting

The Group operates and manages its business as a single segment, in accordance with ASC 280, Segment Reporting (“ASC 280”). The Group’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The Group’s CODM assess the Group’s performance and results of operations on a consolidated basis. The Group generates substantially all of its revenue from clients in China. Accordingly, no geographical segments are presented. Substantially all of the Group’s long- lived assets are located in China.

Earnings per Share

The Group computes earnings per share (“EPS”) in accordance with ASC 260, Earnings per Share (“ASC 260”). ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the potential ordinary shares (such as convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (such as those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the six months ended June 30, 2024 and 2025, there were no dilutive shares.

Foreign currency translation

The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Group and the Group’s entities incorporated in the Cayman Islands and Hong Kong is the United States Dollar (“US$”). The functional currency of the Group’s PRC subsidiaries is the RMB.

Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Translation gains and losses are recognized in the statements of comprehensive income.

For entities within the Group that have a functional currency other than the reporting currency, assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenue, expenses, gains and losses are translated using the average rates for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a component of other comprehensive income in the condensed consolidated statements of income and comprehensive income and the condensed consolidated statements of changes in shareholders’ equity. F-15

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (continued)

Convenience Translation into United States Dollars

Translations of balances in the condensed consolidated balance sheets, condensed consolidated statements of income and comprehensive income and condensed consolidated statements of cash flows from RMB into US$ are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB7.1636 on June 30, 2025. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2025, or at any other rate.

Research and Development Expenses

Research and development (“R&D”) expenses consist primarily of salaries and related personnel costs, depreciation and the cost of services used for the development of the Group’s services management system. Other than software disclosed in intangible assets, all costs associated with R&D are expensed as incurred. For the six months ended June 30, 2024 and 2025, research and development expenses were RMB213,122 and RMB873,959 (US$122,000), respectively.

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued ASU 2024-03, Income Statement— Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses. (“ASU 2024-03”) This pronouncement introduces new disclosure requirements aimed at enhancing transparency in financial reporting by requiring disaggregation of specific income statement expense captions. Under the new guidance, entities are required to disclose a breakdown of certain expense categories, such as: employee compensation; depreciation; amortization, and other material components. The disaggregated information can be presented either on the face of the income statement or in the notes to the financial statements, often using a tabular format. The ASU is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. Early adoption is permitted. The Group is currently evaluating these new disclosure requirements and does not expect the adoption to have a material impact.

In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, which revises the effective date of ASU 2024-03 (on disclosures about disaggregation of income statement expenses) “to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.” Entities within the ASU’s scope are permitted to early adopt the ASU. The Group is currently evaluating the impact of this standard on its consolidated financial statement disclosures.

In July 2025, the FASB issued ASU 2025-05 - Financial Instruments—Credit Losses (Topic 326) (“ASU 2025-05”). The amendments in the ASU 2025-05 provide (1) all entities with a practical expedient and (2) entities other than public business entities with an accounting policy election when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. An entity that elects the practical expedient and the accounting policy election, if applicable, should apply the amendments in the ASU 2025-05 prospectively. The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The Group is evaluating the impact of the adoption of this guidance. We believe the future adoption of this ASU is not expected to have a material impact on its financial statements.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the unaudited condensed consolidated financial statements upon adoption. The Group does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its unaudited condensed consolidated balance sheets, unaudited condensed consolidated statements of operations and comprehensive income (loss), unaudited condensed consolidated cash flows or disclosures. F-16

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 3 — Accounts receivable, net

Accounts receivable, net consisted of the following:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Accounts receivable – third parties		10,666,230		10,074,532		1,406,351
Less: allowance for credit losses		(102,200)		(1,652,681)		(230,706)
Accounts receivable, net		10,564,030		8,421,851		1,175,645

Expected credit losses for the six months ended June 30, 2024 and 2025 amounted to nil and RMB1,550,481 (US$216,439), respectively.

As of December 31, 2024 and June 30, 2025, the aging of accounts receivable based on the services provided were as follows:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Within 90 days		3,606,000		2,761,216		385,451
90 – 180 days		3,606,000		2,667,086		372,311
180 days – 1 year		3,454,230		4,515,146		630,290
Over 1 year		—		131,084		18,299
Accounts receivable		10,666,230		10,074,532		1,406,351

Note 4 **** — Prepayment and other current assets

Prepayment and other current assets consisted of the following:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Prepaid expenses		8,617,132		12,868,237		1,796,338
Escrow deposit		3,284,685		3,223,620		450,000
Employee loans		—		2,444,371		341,221
Other project investment		—		1,683,616		235,023
Lease deposit		110,330		547,430		76,418
Other receivables		91,959		486,342		67,890
Total		12,104,106		21,253,616		2,966,890

F-17

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 5 — Property and equipment, net

Property and equipment, net, consisted of the following:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Motor vehicle		917,135		496,184		69,265
Office equipment		289,688		730,075		101,915
Leasehold improvement		—		151,600		21,162
Subtotal		1,206,823		1,377,859		192,342
Less: accumulated depreciation		(625,973)		(602,679)		(84,131)
Property and equipment, net		580,850		775,180		108,211

Depreciation expenses for the six months ended June 30, 2024 and 2025 amounted to RMB71,273 and RMB156,110 (US$21,792), respectively.

Note 6 — Intangible assets, net

Intangible assets, net, consisted of the following:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Software purchased		5,606,954		5,606,954		782,701
Copyrights purchased		11,528,300		12,471,697		1,740,982
Subtotal		17,135,254		18,078,651		2,523,683
Less: accumulated amortization		(191,438)		(802,449)		(112,018)
Intangible assets, net		16,943,816		17,276,202		2,411,665

Copyrights purchased represent the copyright certificate applied for vocational education. The amortization expenses were RMB12,468 and RMB611,011 (US$85,294) for the six months ended June 30, 2024 and 2025, respectively.

The following is a schedule, by fiscal years, of amortization amount of intangible assets as of June 30, 2025:


		Intangible assets
		RMB		US$
2026		1,808,814		252,501
2027		1,808,023		252,390
2028		1,806,916		252,236
2029		1,806,916		252,236
2030 and thereafter		10,045,533		1,402,302
Total	****	17,276,202	****	2,411,665

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 7 — Prepayment for acquisition

Prepayment for acquisition consisted of the following:


	As of	As of	As of
	December 31,	June 30,	June 30,
	2024	2025	2025
	RMB	RMB	US$
Prepayment for acquisition	32,000,000	—	—

On December 24, 2024, Jiade Zhigao entered into an equity transfer agreement (the “Kunyuan Agreement”) with Meirusi, which is a PRC limited liability company holding 75% of the equity interests in Kunyuan”. Pursuant to the Kunyuan Agreement, Jiade Zhigao agreed to acquire 75% of the equity interests in Kunyuan from Meirusi. In consideration for the acquisition, Jiade Zhigao agreed to pay RMB9,000,000 to Meirusi, subject to the satisfaction by Meirusi and Kunyuan of their respective obligations under the Kunyuan Agreement. The Kunyuan Agreement contains customary covenants, closing conditions, and other obligations and rights of the parties. The Kunyuan Agreement had been approved by the board of directors of Jiade Zhigao on December 23, 2024 and the Company filed Form 6-K on December 27, 2024 announcing the entry into the Kunyuan Agreement. On December 30, 2024, Jiade Zhigao paid the acquisition consideration and recognized the prepayment for such acquisition on the consolidated balance sheets. On January 9, 2025, Meirusi and Kunyuan both fulfilled their respective obligations under the Kunyuan Agreement. Thereupon Kunyuan became a subsidiary of the Company as of January 9, 2025.

On December 24, 2024, Jiade Zhigao entered into an equity transfer agreement (the “Jiazhi Agreement”) with Meirusi, the sole shareholder of Jiazhi. Pursuant to the Jiazhi Agreement, Jiade Zhigao agreed to acquire 100% of the equity interests in Jiazhi from Meirusi. In consideration for the acquisition, Jiade Zhigao agreed to pay RMB23,000,000 to Meirusi, subject to the satisfaction by Meirusi and Jiazhi of their respective obligations under the Jiazhi Agreement. The Jiazhi Agreement contains customary covenants, closing conditions, and other obligations and rights of the parties. The Jiazhi Agreement had been approved by the board of directors of Jiade Zhigao on December 23, 2024 and the Company filed Form 6-K on December 27, 2024 announcing the entry into the Jiazhi Agreement. On December 30, 2024, Jiade Zhigao paid the acquisition consideration and recognized the prepayment for acquisition on the consolidated balance sheets. On January 26, 2025, Meirusi and Jiazhi both fulfilled their respective obligations under the Jiazhi Agreement. Thereupon Jiazhi became a wholly subsidiary of the Company as of January 26, 2025.

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 8 — Right-of-use assets and lease liabilities

Leases are classified as operating leases or finance leases in accordance with ASC 842. The Group’s operating leases are mainly related to office facilities in the PRC. For leases with terms greater than 12 months, the Group records the related asset and liability at the present value of lease payments over the term. The Group’s lease agreements do not contain any material guarantees or restrictive covenants. The Group does not have any material finance leases or any sublease activities. Short-term leases, defined as leases with an initial term of 12 months or less, are not reflected on the unaudited condensed consolidated balance sheets.


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		US$
Operating lease expenses		105,879		548,350		76,547

Other information about the Group’s lease is as follows:


		As of December 31,		As of June 30,		As of June 30,
		2024		2025		2025
		RMB		RMB		US
Operating cash flows used in operating lease		357,355		575,385		80,321
Right-of-use assets obtained in exchange for new operating lease liabilities		994,972		—		—
Right-of-use assets derecognized for termination of operation lease liabilities		78,588		—		—
Gain from termination of operating lease liabilities		—		—		—
Weighted-average remaining lease term-operating		1.5 years		2.3 years		2.3 years
Weighted-average discount rate-operating		12	%	12	%	12

All values are in US Dollars.

The following is a maturity analysis of the annual undiscounted cash flows for the lease liabilities as of June 30, 2025:


		Operating lease
		RMB		US$
Years ending June 30,
2026		730,968		102,039
2027		504,447		70,418
2028		109,296		15,257
Total undiscounted lease payments		1,344,711		187,714
Less: Imputed interest		(152,744)		(21,322)
Lease liabilities recognized in the unaudited condensed consolidated balance sheet		1,191,967		166,392

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 9 **** — Other payables

Other payables consisted of the following:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Accrued expenses		1,352,992		2,692,431		375,849

Note 10 — Deferred revenue


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Deferred revenue		620,000		733,665		102,416
Information about deferred revenue:
Revenue recognized that was included in unearned revenue as of January 1, 2024 and 2025		58,293		310,000		43,274

Note 11 — Bank loans

Outstanding balance of bank loans consisted of the following:


		Loan			Loan			Loan		Loan		Effective	****
As of June 30, 2025		commencement			maturity			amount in		amount in		interest	****
Short-term bank loans		date			date			RMB		USD		rate	****
Bank of China ^(a)^			August 30, 2024			August 25, 2025		3,000,000		418,784		3.35	%
Industrial and Commercial Bank of China			April 18, 2025			April 13, 2026		3,740,000		522,084		3.10	%
Bank of China			April 23, 2025			April 23, 2026		2,000,000		279,189		3.10	%
Chengdu Rural Commercial Bank			May 28, 2025			May27, 2026		1,000,000		139,595		3.20	%
Total short-term bank loans								9,740,000		1,359,652

Long-term bank loans
China Construction Bank ^(b)^			March 21, 2025			March 21, 2028	****	1,000,000	****	139,595		3.05	%
(a)	On August 30, 2024, Kebiao Technology obtained an RMB4,000,000 unsecured loan from Bank of China for a term of twelve months at a fixed interest rate of 3.35% per annum. On May 21, 2025, Kebiao Technology repaid RMB1,000,000 loan to Bank of China and the outstanding balance of loan from Bank of China was RMB3,000,000.
---	---
(b)	On March 21, 2025, Kebiao Technology obtained an RMB1,000,000 unsecured loan from China Construction Bank for a term of three years, with Mr. Yuan Li as a co-borrower, at a fixed interest rate of 3.05% per annum.
---	---

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 12 — Taxes

(a)	Corporate Income Taxes

Cayman Island

The Company is incorporated in the Cayman Islands. The Cayman Islands currently levy no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to the Company levied by the government of the Cayman Islands save for certain stamp duties which may be applicable, from time to time, on certain instruments.

Hong Kong

Under Hong Kong tax laws, with effect from April 1, 2018, a two-tiered profits tax rate regime applies. The profits tax rate for the first HKD 2 million of corporate profits is 8.25%, while the standard profits tax rate of 16.5% remains for profits exceeding HKD 2 million. The Company’s Hong Kong subsidiaries, Jiadezhigao HK and WISMASS HK, are subject to Hong Kong profits tax on their taxable income as reported in their statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. There were no assessable profits derived from or earned from Jiadezhigao HK and WISMASS HK for any of the periods presented.

The PRC

Under the Enterprise Income Tax (“EIT”) Law of the PRC, domestic enterprises and Foreign Investment Enterprises are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on a case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Kebiao Technology was approved as an HNTE on November 2, 2022. As a result, Kebiao Technology has been entitled to a reduced income tax rate of 15% in 2024 and 2025. Kebiao Technology was approved continue to be an HNTE on December 8, 2025, and will be entitled to the reduce tax rate of 15% in 2026, 2027, and 2028. According to the Announcement of the State Taxation Administration on the Implementation of Income Tax Preferential Policies to Support the Development of Small Low Profit Enterprises and Individual Businesses, 25% of the annual taxable income of small low profit enterprises that does not exceed RMB 3 million will be included in the taxable income, and the enterprise income tax will be paid at the rate of 20%. Jiade Zhigao, Shenzhen Kebiao, Kunyuan and Jiazhi are eligible for the above preferential tax policies for small and micro enterprises in 2024 and 2025 and will continue to be eligible for such policies until 2027.

The impact of the tax holidays noted above decreased taxes by RMB568,257, and RMB138,796 (US$19,375) for the six months ended June 30, 2024 and 2025, respectively. The impact of the benefit of the tax holidays on net income per share (basic and diluted) was RMB0.19 and RMB0.05 for the six months ended June 30, 2024 and 2025, respectively.

i)	The components of the income tax provision are as follows:


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		US$
Current		957,599		34,806		4,859
Deferred		—		(232,572)		(32,466)
Total provision (benefit) for income taxes		957,599		(197,766)		(27,607)

F-22

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 12 — Taxes (continued)

ii)The following table reconciles PRC statutory rates to the Group’s effective tax rate:

The following table reconciles the China statutory rates to the Group’s effective tax rate for the six months ended June 30, 2024 and 2025:


	For the six months ended June 30,
	2024		2025
Statutory rate in the PRC	25.0	%	25.0	%
Effect of the PRC preferential tax rate	(9.2)	%	3.1	%
R&D additional deduction	(0.4)	%	0.0	%
Non-deductible expenses*	0.1	%	(16.2)	%
Change in valuation allowance	—		(7.6)	%
Effective tax rate	15.5	%	4.4	%
*	Non-deductible expenses mainly represent expenditures not deductible for PRC tax purposes.
---	---

The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2024 and June 30, 2025, the Group did not have any significant unrecognized uncertain tax positions. The Group did not incur any interest and penalties related to potential underpaid income tax expenses for the six months ended June 30, 2024 and 2025.

**(b)**Taxes payable

Taxes payable consist of the following:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Income tax payable		1,613,840		1,637,213		22,628
Value-added tax payable		359,420		162,096		228,546
Total taxes payable		1,973,260		1,799,309		251,174

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 13 — Segment reporting

ASC 280 establishes standards for reporting information about operating segments on a basis consistent with the Group’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Group’s business segments.

The Group’s CODM, the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing the performance of the Group as a whole and hence, the Group has only one reportable segment. The single reportable segment contains provision of adult education supporting services, safety technology training services and online course services. The Group has concluded that consolidated net income (loss) is the measure of segment profitability. The CODM assesses performance for the Group, monitors budget versus actual results, and determines how to allocate resources based on consolidated net income (loss) as reported in the unaudited condensed consolidated statements of income (loss). Operating expenses are reviewed in aggregate.


		For the six months ended June 30,
		2024	2025	2025
		RMB	RMB	US$
Revenue		8,921,488	9,383,590	1,309,899
Add:
Other income		15,639	573,182	80,013
Less:
Cost of services		43,219	4,531,782	632,612
Staff cost		1,350,476	26,251,973	366,463
Consulting expenses		483,766	3,308,126	461,797
Depreciation and amortization		83,741	767,121	107,086
Rental expenses		105,879	548,350	76,547
Annual listing fee		69,815	506,508	70,706
Provision for credit losses		—	1,550,481	216,439
Interest expenses		49,642	109,609	15,301
Other segment items^*^		573,864	552,741	77,159
Income taxes provision (benefit)		957,599	(197,766)	(27,607)
Segment net income		5,219,126	(4,345,377)	(606,591)
*	Other segment items included entertainment expenses, office expenses, travelling expenses and other expenses for administrative purposes.
---	---

The Group does not distinguish between markets or segments for the purpose of internal reporting. The Group’s assets are substantially all located in the PRC and substantially all of the Group’s revenue and expenses are derived from the PRC. Therefore, no geographical segments are presented. F-24

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 14 — Shareholders’ equity

The Company was established as a holding company under the laws of the Cayman Islands on February 20, 2023. The original authorized number of ordinary shares is 200,000,000 shares with par value of US$0.01 per share. On May 23, 2025, the Company authorized and approved a consolidation of its authorized issued and unissued ordinary shares on an 8:1 basis (“Share Consolidation”) from 200,000,000 shares to 25,000,000 shares with par value of US$0.08 per share. In addition, the Company authorized and approved a change to its authorized share capital and the reclassification of its share structure (“Change of Authorized Share Capital”). Pursuant to the Change of Authorized Share Capital, the Company’s authorized share capital was increased from $2,000,000 divided into 25,000,000 ordinary shares of a par value of $0.08 each, to an aggregate of (i) $2,000,000 divided into 25,000,000 ordinary shares of a par value of $0.08 each, and (ii) $50,000 divided into 500,000,000 shares of a par value of $0.0001 each, consisting of (a) 395,000,000 Class A ordinary shares (“Class A Ordinary Shares”), (b) 75,000,000 Class B ordinary shares (“Class B Ordinary Shares”), and (c) 30,000,000 preference shares (“Preference Shares”), each with such rights and restrictions as set forth in the Company’s second amended and restated memorandum and articles of association. Immediately following such increase in authorized share capital, the Company issued (i) an aggregate of approximately 2,014,893 Class A Ordinary Shares to all of its existing shareholders, other than JD LIYUAN LIMITED, pro rata, based on their existing shareholding percentages, and (ii) 1,052,063 Class B Ordinary Shares to JD LIYUAN LIMITED (together, the “Issue of Dual Class Shares”). Such issuances did not affect the relative shareholding percentages of any shareholder. Following the Issue of Dual Class Shares, the Company repurchased all of the approximately 3,066,935 issued ordinary shares of $0.08 par value held by its shareholders and simultaneously cancelled such shares and cancelled all 25,000,000 of its remaining authorized but unissued ordinary shares of $0.08 par value. As a result of the Share Consolidation and Change of Authorized Share Capital, the Company’s authorized share capital became $50,000 divided into 500,000,000 shares of a par value of $0.0001 each, consisting of 395,000,000 Class A Ordinary Shares, 75,000,000 Class B Ordinary Shares, and 30,000,000 Preference Shares.

As of December 31, 2024 and June 30, 2025, 2,014,893 Class A Ordinary Shares and 1,052,063 Class B Ordinary Shares were issued and outstanding, respectively. The shares are presented on a retroactive basis to reflect the Share Consolidation, Change of Authorized Share Capital and Issue of Dual Class Shares.

Additional paid-in capital

As of December 31, 2024 and June 30, 2025, additional paid-in capital in the consolidated balance sheet represented the net proceeds from IPO and the underwriters’ exercise of an over-allotment option after deducting underwriting discounts the offering expenses payable.

Statutory reserves and restricted net assets

The Group is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Group’s board of directors. The statutory reserve as determined pursuant to PRC statutory laws totaled approximately RMB2,054,975 and RMB2,054,975 (US$286,863) as of December 31, 2024 and June 30, 2025, respectively.

Because the Group’s operating subsidiaries in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s operating subsidiaries in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital and statutory reserves of the Group’s entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which represented the amount of net assets of the Company’s operating subsidiaries in the PRC not available for distribution, was RMB4,784,059 and RMB4,784,059 (US$667,829) as of December 31, 2024 and June 30, 2025, respectively. F-25

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 14 — Shareholders’ equity (continued)

Ordinary shares subscribed

Subscribed shares are shares that shareholders have promised to buy. As of December 31, 2024 and June 30, 2025, the total number of shares that shareholders promised to buy were up to 1,727,393 Class A ordinary shares and 1,052,063 Class B ordinary shares which were issued and outstanding, as of such dates, respectively. The shares are presented on a retroactive basis to reflect the Share Consolidation, Change of Authorized Share Capital and Issue of Dual Class Shares. The total number of shares that shareholders have promised to buy are expected to be paid for by December 31, 2025.

Note 15 — Related party balances and transactions

The following is a list of related parties which the Group has transactions with:

(a)	Mr. Yuan Li, 100% owner of the Company’s largest shareholder and one of the directors of the Company.
(b)	Ms. Li Tan, Chief Financial Officer of the Company.
---	---
(c)	JD LIYUAN LIMITED, the Company’s largest shareholder.
---	---

Amounts due from related parties

The amounts due from related parties consisted of the following:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Mr. Yuan Li		4,439,705		—	****	—
JD LIYUAN LIMITED		—		17,558		2,451

All amounts due from related parties are unsecured, interest-free and repayable on demand.

Amounts due to related parties

The amounts due to related parties consisted of the following:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Mr. Yuan Li		275,000		245,000		34,201
Ms. Li Tan		100		—		—

Amounts due from Mr. Yuan Li represent the purchase payments for a vehicle on behalf of Kebiao Technology, which is mainly because vehicle installment payments can only be processed on behalf of Kebiao Technology in the name of its legal representative.

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 16 — Concentrations and risks

**(a)**Concentrations

Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivable. The Group conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Group evaluates its collection experience and long outstanding balances to determine the need for an allowance for credit loss. The Group conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue:


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		US$
Amount of the Group’s revenue
Customer A		3,167,689		1,538,585		214,778
Customer B		2,738,821		1,419,387		198,139
Customer C		1,818,703		1,646,439		229,834

The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable:


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
Amount of the Group’s revenue
Customer A		4,113,500		4,484,400		625,998
Customer B		5,201,700		2,206,250		307,981
Customer C		—		1,871,652		261,273

**(b)**Credit risk

Credit risk is the potential financial loss to the Group resulting from the failure of a customer or a counterparty to settle its financial and contractual obligations to the Group, as and when they fall due. As the Group does not hold any collateral, the maximum exposure to credit risk is the carrying amounts of accounts and other receivables (excluding prepayments) and cash and cash equivalents presented on the condensed consolidated balance sheets. The Group has no other financial assets which carry significant exposure to credit risk.

**(c)**Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s interest rate risk arises primarily from loans. Loans issued at variable rates and fixed rates expose the Group to cash flow interest rate risk and fair value interest rate risk respectively. F-27

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JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 16 — Concentrations and risks (continued)

**(d)**Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 90 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Note 17 — COMMITMENTS

Operating lease commitments

The total future minimum lease payments including the agreed upon property management fee under the non-cancellable operating lease with respect to the contractual obligations were as follows:


	As of	As of	As of
	December 31,	June 30,	June 30,
	2024	2025	2025
	RMB	RMB	US$
Within 1 year	143,438	143,438	20,023
1 – 2 years	71,719	143,438	20,023
Total	215,157	286,876	40,046

Note 18 — CONTINGENCIES

Contingencies

In the ordinary course of business, the Group may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Group records contingent liabilities resulting from such claims, when a loss is assessed to be probable, and the amount of the loss is reasonably estimable. In the opinion of management, there were no pending or threatened claims and litigation as of June 30, 2025 and through the issuance date of these unaudited condensed consolidated financial statements.

Note 19 — SUBSEQUENT EVENTS

The Group has performed an evaluation of subsequent events through to the date the unaudited condensed consolidated financial statements were issued, and determined that no other events that would have required adjustment or disclosure in the unaudited condensed consolidated financial statements except for the events mentioned below:

On July 15, 2025, the Company’s board of directors granted 302,230 Class A Ordinary Shares of the Company, at the price of US$0.0001 per share, pursuant to the Company’s 2025 Equity Incentive Plan, to certain employees of the Company.

On September 11, 2025 and September 24, 2025, the Company entered into a serial of securities purchase agreements, pursuant to which the Company sold to certain purchasers in a registered direct offering, an aggregate of 10,700,000 Class Ordinary A shares, par value US$0.0001 per share, at a purchase price of US$0.58 per share, for aggregate net proceeds to the Company of US$5,997,397, after deducting fees to the placement agent and other offering expenses payable by the Company. F-28

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 20 — UNAUDITED CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

The Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in the PRC is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in the PRC. The Company’s subsidiaries are also required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

In addition, the Group’s operations and revenue are conducted and generated in the PRC, and all of the Group’s revenue earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Group may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Group’s ability to convert RMB into U.S. dollars.

Regulation S-X requires the condensed financial information of the registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25% of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s PRC subsidiary exceed 25% of the consolidated net assets of the Company.

Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been condensed or omitted. The Company’s investment in subsidiary is stated at cost plus equity in undistributed earnings of subsidiaries.

The condensed financial information has been prepared using the same accounting policies as set out in the unaudited condensed consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. For the parent company, the 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 “Investments in subsidiaries” and the subsidiaries’ gain as “Equity in gain of subsidiaries” on the Condensed Statements of Comprehensive Income.

For the six months ended June 30, 2024 and 2025, there were no material contingencies, significant provisions of long-term obligations, or guarantees of the Company.

F-29

Table of Contents

JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 20 — UNAUDITED CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (continued)

PARENT COMPANY CONDENSED BALANCE SHEETS


		As of		As of		As of
		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
		Audited		Unaudited		Unaudited
ASSETS:
Cash and cash equivalents		4,437		1,283		179
Prepayment and other current assets		3,450,175		4,767,966		665,582
Due from subsidiaries		43,345,774		48,285,844		6,740,444
Investment in subsidiaries		25,822,112		15,520,994		2,166,647
TOTAL ASSETS		72,622,498		68,576,087		9,572,852
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Payroll payable		159,243		379,964		53,041
Other payable		1,314,148		2,206,899		308,072
TOTAL LIABILITIES		1,473,391		2,586,863		361,113
SHAREHOLDERS’ EQUITY
Class A ordinary shares, $0.0001 par value; 395,000,000 shares authorized; 2,014,893 shares and 2,014,893 shares issued as of December 31, 2024 and June 30, 2025, respectively*		1,445		1,445		201
Class B ordinary shares, $0.0001 par value; 75,000,000 shares authorized; 1,052,063 shares and 1,052,063 shares issued as of December 31, 2024 and June 30, 2025, respectively*		754		754		105
Additional paid-in capital		50,180,663		50,180,663		7,004,950
Statutory reserves		2,054,975		2,054,975		286,863
Ordinary shares subscribed		(1,993)		(1,993)		(278)
Accumulated other comprehensive income (loss)		418,491		(259,952)		(36,288)
Retained earnings		18,494,772		14,013,332		1,956,186
TOTAL SHAREHOLDERS’ EQUITY		71,149,107		65,989,224		9,211,739
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		72,622,498		68,576,087		9,572,852

F-30

Table of Contents

JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 20 — UNAUDITED CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (continued)

PARENT COMPANY CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		US$
General and administrative expenses		285,197		3,465,275		483,734
Research and development expenses		43,334		43,415		6,061
LOSS FROM OPERATIONS		(328,521)		(3,508,690)		(489,795)
Interest income		14,625		—		—
Other expenses, net				(4,751)		(663)
Equity in gain (loss) of subsidiaries		5,487,453		(967,999)		(135,127)
INCOME (LOSS) BEFORE INCOME TAX		5,173,547		(4,481,440)		(625,585)
NET INCOME (LOSS)		5,173,547		(4,481,440)		(625,585)

OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment		408,495		(678,443)		(94,707)
TOTAL COMPREHENSIVE INCOME (LOSS)		5,582,042		(5,159,883)		(720,292)

F-31

Table of Contents

JIADE LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 20 — UNAUDITED CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (continued)

PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		US$
CASH FLOWS FROM OPERATING ACTIVITIES:
Total net income (loss)		5,173,547		(4,481,440)		(625,585)
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in gain (loss) of subsidiaries		(5,487,453)		967,999		135,127
Unrealized foreign exchange loss (gain)		400,122		(678,443)		(94,707)
Changes in operating assets and liabilities:
Prepayment and other current assets		(210,749)		170,185		23,757
Other payables		498,646		892,751		124,624
Payroll payables		260,448		220,721		30,811
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		634,561		(2,908,227)		(405,973)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares upon the completion of IPO		54,481,760		—		—
Proceeds from issuance of ordinary shares upon exercise of underwriters’ over-allotment option		8,690,520		—		—
Net repayment from related parties		(48,334,992)		4,393,049		613,246
Deferred costs related to IPO		(9,451,329)		(1,487,976)		(207,713)
NET CASH PROVIDED BY FINANCING ACTIVITIES		5,385,959		2,905,073		405,533
EFFECT OF FOREIGN EXCHANGE RATE ON CASH AND CASH EQUIVALENT		37,457		—		—
NET INCREASE IN CASH AND CASH EQUIVALENT		6,057,977		(3,154)		(440)
TOTAL CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		—		4,437		619
TOTAL CASH AND CASH EQUIVALENTS, END OF PERIOD		6,057,977		1,283		179

F-32

Exhibit 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and the related notes. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors.

Overview

JIADE LIMITED (the “Company,” “we,” “our,” or “us”) (Nasdaq: JDZG) is an exempted company with limited liability incorporated in the Cayman Islands and not a Chinese operating company, and this corporate structure involves unique risks to investors. As an exempted company with no material operations of our own, we conduct all of our operations primarily through our subsidiaries in the People’s Republic of China (the “PRC”); namely, Shenzhen Kebiao Technology Co., Ltd., a limited liability company organized under the laws of the PRC (“Shenzhen Kebiao”), Sichuan Jiade Zhigao Technology Co., Ltd., a limited liability company organized under the laws of the PRC (“Jiade Zhigao”), Sichuan Kebiao Technology Co., Ltd., a PRC limited liability company (“Kebiao Technology), Sichuan Jiazhi Taizhang Safety Technology Co., Ltd., a PRC limited liability company (“Jiazhi”) and Sichuan Kunyuan Safety Technology Services Co., Ltd., a PRC limited liability company (“Kunyuan”). Our PRC subsidiaries are companies that specialize in providing one-stop comprehensive education supporting services to adult education institutions, through a wide spectrum of software platform and auxiliary solutions, to meet the evolving needs of their customers in the rapidly changing adult education industry, safety technology training for personnel engaged in five major categories of conventional special operations: (i) fusion welding and thermal cutting operations; (ii) work at height (scaffolding and erection operations); (iii) high-altitude installation, maintenance, and dismantling operations; (iv) high-voltage electrical work; and (v) low-voltage electrical work, and online course services.

Our one-stop comprehensive education supporting services are primarily offered through the Kebiao Technology Educational Administration Platform (the “KB Platform”), which facilitates streamlined information and data management throughout the teaching cycle of adult education services, from pre-enrollment to post-graduation. The KB Platform has enabled adult education institutions to improve student management efficiency, save labor costs, and reduce human errors in data management. The KB Platform supports a broad range of functions, such as enrollment consultation, student information collection, enrollment status management, learning progress management, grade inquiry, and graduation management. As part of the one-stop comprehensive education supporting services, our PRC subsidiaries also provide auxiliary solutions to adult education institutions, which encompass teaching support services throughout the entire teaching cycle and related exam administration services. Specifically, our PRC subsidiaries offer pre-enrollment guidance on school/major selection and application strategy development, training for entrance exams, as well as assistance in the application process. They also provide offline tutoring, exam administration services, and guidance on graduation thesis preparation.

Our safety technology training services for personnel are primarily offers initial training, refresher training, and certification renewal programs for these types of operations, with both theoretical instruction and practical training components. After obtaining the required certificates issued by the Ministry of Emergency Management of China, personnel are required to complete refresher training every three years and certification renewal training every six years. As a result, our Group benefit from a high rate of repeat business, providing a recurring revenue stream.

Our online course revenue is primarily generated from the safety technology online learning courses developed by our PRC subsidiary, which authorize for use on third-party platform and charges services fee.

Our PRC subsidiaries place a great premium on technology research and development. As of the date of this report, our PRC subsidiaries have acquired 36 software copyrights and eight copyright registration certificates since their incorporation in April 2020. In November 2022, Kebiao Technology was designated a High and New Technology Enterprise (“HNTE”) (No. GR202251000919) by Sichuan Provincial Department of Science and Technology, Sichuan Provincial Department of Finance, and Sichuan Provincial Tax Bureau of the State Taxation Administration. In December 2025, Kebiao Technology was approved to continue to be an HNTE until 2028. This certification is awarded to companies that have engaged in continuous research and development and technology commercialization leading to significant independent intellectual property rights within certain high-tech sectors.

For the six months ended June 30, 2024 and 2025, we had total revenue of approximately RMB8,921,000 and RMB9,384,000 (US$1,310,000), respectively. Our net income was approximately RMB5,219,000 for the six months ended June 30, 2024, and net loss was approximately RMB4,345,000 (US$607,000) for the six months ended June 30 2025. As of December 31, 2024 and June 30, 2025, we had cash of approximately RMB3,918,000 and RMB7,902,000 (US$1,103,000), respectively, and had working capital of approximately RMB21,262,000 and RMB21,683,000 (US$3,027,000), respectively. As of June 30, 2025, our PRC subsidiaries had collectively provided one-stop comprehensive education supporting services to over 17 adult education institutions and had collectively provided education supporting services to approximately 94,433 students, newly provided safety technology training services for approximately 6,831 individuals and online course services for approximately 32,599 individuals.

Factors Affecting Results of Operations

In addition to the general factors affecting the Chinese and global economy and our industry, our results of operations and financial condition are affected by a number of industry- and company-specific factors, including those set out below:

Relationships with Partner Education Institutions: Our revenue will depend significantly on our PRC subsidiaries’ ability to manage their relationships with partner education institutions. The success of our PRC subsidiaries’ business primarily depends on the number of students they serve. Therefore, their ability to continue to attract partner education institutions to purchase their services to serve students is critical to our PRC subsidiaries’ sustainable growth and continued success. This in turn depends on the reputation of our PRC subsidiaries and their ability to develop new offerings or adapt existing education supporting services to meet evolving market trends and student demands.

Competition in the Adult Education Supporting Service Industry: The adult education supporting service industry in the PRC is highly fragmented, with a large number of service providers throughout the country. Our PRC subsidiaries compete primarily with adult education supporting service providers in the PRC and new entrants to the market, and some of their competitors may have better access to market resources, lower cost structures, more advanced technologies or longer operating histories. If our PRC subsidiaries are unable to improve their service quality, diversify their product and service range, or manage their costs, they may not be able to compete effectively against their existing or new competitors, and their sustainability and growth opportunities may be limited, which will materially and adversely affect their revenue and profitability.

Results of Operations for the Six Months Ended June 30, 202 5

The following is a summary of our result of operations for the six months ended June 30, 2024 and 2025, respectively.


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		USD
REVENUE		8,921,488		9,383,590		1,309,899
Cost of revenue		400,313		5,708,984		796,943
GROSS PROFIT	****	8,521,175	****	3,674,606	****	512,956
OPERATING EXPENSES
Selling expenses		259,040		317,169		44,275
General and administrative expenses		1,550,235		7,490,194		1,045,591
Research and development expenses		213,122		873,959		122,000
Total operating expenses		2,022,397		8,681,322		1,211,866
INCOME / (LOSS) FROM OPERATIONS	****	6,498,778	****	(5,006,716)	****	(698,910)
OTHER INCOME (EXPENSES)
Interest income		15,639		442		62
Interest expense		(49,642)		(109,609)		(15,301)
Other income/(loss), net		(288,050)		572,740		79,951
Total other income (expenses), net	****	(322,053)	****	463,573	****	64,712
INCOME / (LOSS) BEFORE INCOME TAXES	****	6,176,725	****	(4,543,143)	****	(634,198)
INCOME TAXES PROVISION (BENEFIT)		957,599		(197,766)		(27,607)
NET INCOME / (LOSS)	****	5,219,126	****	(4,345,377)	****	(606,591)

Revenue


		For the six months ended June 30,
		2024				2025						Increase/(Decrease)
Revenue		RMB		%		RMB		US$		%		RMB		%	****
Adult education supporting services		8,921,488		100	%	5,671,628		791,729		60	%	(3,249,860)		(36)	%
Safety technology training services		—		—		3,503,890		489,124		38	%	3,503,890		100	%
Online course services		—		—		208,072		29,046		2	%	208,072		100	%
Total revenue		8,921,488		100	%	9,383,590		1,309,899		100	%	462,102		5	%

Our PRC subsidiaries generate revenue from providing adult education supporting services, safety technology training services and online course services. Our adult education supporting services primarily contain services through (i)software platform solutions, which facilitate streamlined information and data management throughout the teaching cycle of adult education services, from pre-enrollment to post- graduation, and (ii) auxiliary solutions to students designated by adult education institutions, which encompass teaching support services throughout the entire teaching cycle and related exam administration services. Our safety technology training services are primarily offers initial training, refresher training, and certification renewal programs for these types of operations with both theoretical instruction and practical training components. Our online course revenue is primarily generated from the safety technology online learning courses developed by our PRC subsidiary, which authorize for use on third-party platform and charges services fee.

Total revenue increased by approximately RMB462,000 (US$65,000), or 5%, to approximately RMB9,384,000 (US$1,310,000) for the six months ended June 30, 2025 from approximately RMB8,921,000 for the six months ended June 30, 2024. The increase in revenue was mainly attributable to: (i) an increase in revenue generated from safety technology training services and online course revenue, amounting to approximately RMB3,504,000 (US$489,000) and RMB208,000 (US$29,000), respectively, due to the new revenue generated from acquisition subsidiaries, Jiazhi and Kunyuan, and newly developed business; and (ii) partially offset by a decrease in revenue generated from adult education supporting services, amounting to approximately RMB3,250,000 (US$454,000), mainly due to the served students decreased from 71,096 students for the six months ended June 30, 2024 to 52,919 students for the six months ended June 30, 2025, mainly as a result of the fact that part of students graduated and the services completed in the fiscal year 2024 and fewer new students enrolled for the six months ended June 30, 2025.

Adult education supporting services

The following table sets forth the breakdown of our net revenue generated from adult education supporting services for the periods presented:


	For the six months ended June 30,									****
	2024			2025				Decrease		****
Revenue	RMB	%		RMB	US$	%		RMB	%	****
National Unified
Examination for College
Admissions for Adults	3,276,258	37	%	2,801,509	391,076	49	%	(474,749)	(14)	%
Open University of China	2,932,356	33	%	1,907,311	266,250	34	%	(1,025,045)	(35)	%
Self-taught Higher
Education Examinations	2,695,576	30	%	962,808	134,403	17	%	(1,732,768)	(64)	%
Online education	17,298	—	%	—	—	—		(17,298)	(100)	%
Total revenue	8,921,488	100	%	5,671,628	791,729	100	%	(3,249,860)	(36)	%

Revenue from providing services related to National Unified Examination for College Admissions decreased by approximately RMB475,000 (US$66,000), or 14%, primarily due to (i) the decreased number of students served from 22,919 for the six months ended June 30, 2024 to 21,771 for the six months ended June 30, 2025, mainly as a decrease in the new enrolled students for the six months ended June 30, 2025, and (ii) the decrease in the average service price per student (for services related to National Unified Examination for College Admissions for Adults) from RMB143 for the six months ended June 30, 2024 to RMB129 for the six months ended June 30, 2025.

Revenue from providing services related to the Open University of China decreased by approximately RMB1,025,000 (US$143,000), or 35%, primarily due to (i) a decrease in the number of students served from 33,353 for the six months ended June 30, 2024 to 16,183 for the six months ended June 30, 2025, mainly as result of the increased number of graduated students we served in the fiscal year 2024 and (ii) partially offset by an increase in the average service price per student (for services related to the Open University of China) from RMB88 for the six months ended June 30, 2024 to RMB118 for the six months ended June 30, 2025.

Revenue from providing services related to Self-taught Higher Education Examinations decreased by approximately RMB1,733,000 (US$242,000), or 64%, primarily due to (i) the decreased number of students served from 15,757 for the six months ended June 30, 2024 to 14,965 for the six months ended June 30, 2025, mainly as a result of the increased number of graduated students we served in the fiscal year 2024, and (ii) the decreased in the average service price per student (for services related to National Unified Examination for College Admissions for Adults) from RMB171 for the six months ended June 30, 2024 to RMB64 for the six months ended June 30, 2025. The reduction in the service price per student was mainly due to the increased number of graduating students we served, for whom we charged lower fees.

Revenue from providing services related to online education decreased by approximately RMB17,000 (US$2,000), or 100%, primarily due to the services that had been completed in the fiscal year 2024 and because our PRC subsidiaries suspended the services for online education for the fiscal year 2025.

Safety technology training services

Revenue generated from safety technology training services related to initial training, refresher training, and certification renewal programs for these types of operations, with both theoretical instruction and practical training components. For the six months ended June 30, 2025, we provided safety technology training services for both components to 6,831 individuals, with the average training price of approximately RMB513 (US$72).

Online course services

Revenue generated from online course services related to the course services fee which was generated from the safety technology online learning courses developed by our PRC subsidiary then authorized for use on a third-party platform. For the six months ended June 30, 2025, we provided online course services to 32,599 individuals, with the average course usage price of approximately RMB6 (US$1).

Costs and expenses

Our costs and expenses consist of direct cost of revenue, selling expenses, general and administrative expenses, and research and development expenses.

Cost of revenue

The following table sets forth the breakdown of our cost of revenue for the six months ended June 30, 2024 and 2025:


		For the six months ended June 30,													****
		2024				2025						Increase/(Decrease)			****
cost of revenue		RMB		%		RMB		US$		%		RMB		%	****
Cost of services		43,219		11	%	4,762,385		664,803		84	%	4,719,166		>100	%
Employee benefit costs		338,615		85	%	938,683		131,035		16	%	600,068		177	%
Others		18,479		4	%	7,916		1,105		—	%	(10,563)		(57)	%
Total cost of revenue		400,313		100	%	5,708,984		796,943		100	%	5,308,671		>100	%

Total cost of revenue increased by approximately RMB5,309,000 (US$741,000), from approximately RMB400,000 for the six months ended June 30, 2024 to approximately RMB5,709,000 (US$797,000) for the six months ended June 30, 2025, primarily due to the increase in cost of services and employee benefit costs.

Cost of services increased by approximately RMB4,719,000 (US$659,000), from approximately RMB43,000 for the six months ended June 30, 2024 to approximately RMB4,762,000 (US$665,000) for the six months ended June 30, 2025, primarily due to: (i) our PRC subsidiaries having invested approximately RMB3,302,000 (US$461,000) in enhanced customer support during the prior-enrollment stage through both online platforms and offline promotional activities, and (ii) the increased outsourced training and examination services fee related to safety technology training services, amounting to approximately RMB1,216,000 (US$170,000).

Employee benefit costs increased by approximately RMB600,000 (US$84,000), or 177%, from approximately RMB339,000 for the six months ended June 30, 2024 to approximately RMB939,000 (US$131,000) for the six months ended June 30, 2025, primarily because our PRC subsidiaries increased the staff salaries related to safety technology training services.

Other costs primarily represented short rental expenses related to exams, student card photo production fees, travelling expenses, business taxes and surcharges and others.

Selling expenses


		For the six months ended June 30,													****
		2024				2025						Increase			****
Selling expenses		RMB		%		RMB		US$		%		RMB		%	****
Employee benefits		148,316		57	%	158,842		22,173		50	%	10,526		7	%
Entertainment expenses		67,974		26	%	98,425		13,740		31	%	30,451		45	%
Depreciation		42,750		17	%	52,890		7,383		17	%	10,140		24	%
Others		—		—		7,012		979		2	%	7,012		100	%
Total selling expenses		259,040		100	%	317,169		44,275		100	%	58,129		22	%

Total selling expenses increased by approximately RMB58,000 (US$8,000), or 22%, to approximately RMB317,000 (US$44,000) for the six months ended June 30, 2025, compared to approximately RMB259,000 for the six months ended June 30, 2024. The increase in selling expenses was mainly due to increased employee benefits for the selling department related to the salary increases, entertainment expenses and depreciation for motor vehicles, such as Company-owned cars utilized for business purposes. The increased entertainment expenses were due to more frequent client engagement activities and events aimed at building relationships with potential clients and business partners.

General and administrative expenses


		For the six months ended June 30,													****
		2024				2025						Increase/(Decrease)			****
General and administrative expenses		RMB		%		RMB		US$		%		RMB		%	****
Employee benefits		692,472		45	%	1,128,836		157,579		15	%	436,364		63	%
Consulting expenses		483,766		31	%	3,308,126		461,797		44	%	2,824,360		584	%
Annual listing fee		69,815		5	%	506,508		70,706		7	%	436,693		626	%
Property management
expenses		270		—	%	108,063		15,085		1	%	107,793		>100	%
Rental expenses		97,104		6	%	486,034		67,848		6	%	388,930		401	%
Depreciation		23,338		2	%	99,993		13,958		1	%	76,655		328	%
Office expenses		36,768		2	%	91,863		12,824		1	%	55,095		150	%
Travelling expenses		57,524		4	%	54,071		7,548		1	%	(3,453)		(6)	%
Expected credit loss for accounts receivable		—		—		1,550,481		216,439		21	%	1,550,481		100	%
Others		89,178		5	%	156,219		21,807		3	%	67,041		75	%
Total general and administrative expenses		1,550,235		100	%	7,490,194		1,045,591		100	%	5,939,959		383	%

Total general and administrative expenses increased by approximately RMB5,940,000 (US$829,000), or 383%, to approximately RMB7,490,000 (US$1,046,000) for the six months ended June 30, 2025 from approximately RMB1,550,000 for the six months ended June 30, 2024. As a percentage of revenue, general and administrative expenses were approximately 17% and 80% of our total revenue for the six months ended June 30, 2024 and 2025, respectively. The increase in total general and administrative expenses was primarily attributable to: (i) the increase in salary and employee benefits of our management department resulting from the increase in compensation of independent directors and the recruitment of additional employees for our management department related to new services for safety technology training, (ii) the increase in consulting expenses resulting from the increase in the legal service fees for corporate compliance, investment relationship services fee and annual printing fees, (iii) the increase in property management expenses and rental expenses which resulted from the new leased office expenses, and (iv) the increase in expected credit loss for accounts receivable which resulted from long-aged receivables.

Research and development expenses


		For the six months ended June 30,													****
		2024				2025						Increase/(Decrease)			****
Research and development expenses		RMB		%		RMB		US$		%		RMB		%	****
Employee benefits		171,073		80	%	398,836		55,675		46	%	227,763		133	%
Depreciation		5,185		2	%	379,796		53,017		43	%	374,611		>100	%
Office expenses		7,876		4	%	9,432		1,317		1	%	1,556		20	%
Consulting expenses		19,802		9	%	—		—		—		(19,802)		(100)	%
Rental expenses		8,775		4	%	62,316		8,699		7	%	53,541		610	%
Others		411		1	%	23,579		3,292		3	%	23,168		>100	%
Total research and development expenses		213,122		100	%	873,959		122,000		100	%	660,837		310	%

Total research and development expenses increased by approximately RMB661,000 (US$92,000), or 310%, to approximately RMB874,000 (US$122,000) for the six months ended June 30, 2025 from approximately RMB213,000 for the six months ended June 30, 2024. The increase in total research and development expenses was primarily due to: (i) the increase in salary and employee benefits of our PRC subsidiaries’ R&D department resulting from the addition of two employees to our R&D department and the increase in deprecation related to the new increased intangible assets, and (ii) partially offset by a decrease in consulting expenses of approximately RMB20,000 related to HNTE service fees for the six months ended June 30, 2024.

As a percentage of revenue, research and development expenses were approximately 2% and 9% of our total revenue for the six months ended June 30, 2024 and 2025, respectively. Our PRC subsidiaries expect to continue to invest in research and development to maintain their competitive edge against other market participators.

Other income (expenses)

Our other income (expenses) primarily represented interest income, interest expenses, government grants, net loss on disposal of property and equipment and foreign exchange gain/loss. Other income (expenses) increased by approximately RMB786,000 (US$110,000), or 244%, from other expenses approximately RMB322,000 for the six months ended June 30, 2024 to other income approximately RMB464,000 (US$65,000) for the six months ended June 30, 2025, primarily due to (i) a foreign exchange gain of approximately RMB579,000 (US$81,000) for the six months ended June 30, 2025 compared to foreign exchange loss of approximately RMB594,000 for the six months ended June 30, 2024; (ii) partially offset a government grant of RMB305,000 for HNTE for the six months ended June 30, 2024 and no such activities recorded for the six months ended June 30, 2025.

Income / (loss) before income taxes

Loss before income taxes was approximately RMB4,543,000 (US$634,000) for the six months ended June 30, 2025, a decrease of approximately RMB10,720,000 (US$1,496,000) as compared to income before income taxes approximately RMB6,177,000 for the six months ended June 30, 2024. The decrease was primarily attributable to the increased cost of revenue and operating expenses.

Provision (benefit) for income taxes

Our income taxes benefit was approximately RMB198,000 (US$28,000) for the six months ended June 30, 2025, compared to income taxes provision of approximately RMB958,000 for the six months ended June 30, 2024. The decreased income tax provision was mainly due to decreased taxable income for the six months ended June 30, 2025.

Under the Enterprise Income Tax Law (“EIT Law”), domestic enterprises and Foreign Investment Enterprises are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays, and even tax exemption may be granted on a case-by-case basis. The EIT Law grants preferential tax treatment to HNTEs. Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Kebiao Technology, one of our PRC subsidiaries, was approved as an HNTE on November 2, 2022. As a result, Kebiao Technology was entitled to a reduced income tax rate of 15% in 2024 and 2025. Kebiao Technology was approved to continue to be an HNTE on December 8, 2025, and will be entitled to the reduced tax rate of 15% in 2026, 2027, and 2028.

According to the Announcement of the State Taxation Administration on the Implementation of Income Tax Preferential Policies to Support the Development of Small Low Profit Enterprises and Individual Businesses, 25% of the annual taxable income of small low profit enterprises that does not exceed RMB3 million will be included in the taxable income, and the enterprise income tax will be paid at the rate of 20%. Jiade Zhigao, Jiazhi and Kunyuan are eligible for the above preferential tax policies for small and micro enterprises in 2025 and will continue to be eligible for such policies until 2027.

The impact of the tax holidays noted above decreased taxes by approximately RMB568,000 and RMB139,000 (US$19,000) for the six months ended June 30, 2024 and 2025, respectively. The impact of the benefit of the tax holidays on net income per share (basic and diluted) was RMB0.19 and RMB0.05 for the six months ended June 30, 2024 and 2025, respectively.

The following table reconciles the China statutory rates to our effective tax rate for the six months ended June 30, 2024 and 2025:


	For the six months ended June 30,
	2024		2025
Income / (loss) before income taxes	6,176,725		(4,543,143)
Statutory rate in PRC	25	%	25	%
Income tax at statutory tax rate	1,544,181		(1,135,786)
Effect of preferential tax rates granted to the PRC entities	(568,259)		(142,115)
R&D additional deduction	(24,707)		—
Expenses not deductible for tax purpose	6,384		736,252
Change in valuation allowance	—		343,883
Income tax provision / (benefit)	957,599		(197,766)

Net income / (Loss)

Our net loss was approximately RMB4,345,000 (US$607,000) for the six months ended June 30, 2025, a decrease of approximately RMB9,564,000 (US$1,335,000) from net income of approximately RMB5,219,000,000 for the six months ended June 30, 2024. The decrease in net income (loss) was primarily due to the higher cost of revenue and operating expenses for the six months ended June 30, 2025, as discussed above under cost of revenue and operating expenses sections.

Liquidity and Capital Resources

The following table sets forth our current assets and current liabilities as of the dates indicated:


		December 31,		June 30,		June 30,
		2024		2025		2025
		RMB		RMB		US$
CURRENT ASSETS:
Cash and cash equivalents		3,918,146		7,902,053		1,103,084
Accounts receivable, net		10,564,030		8,421,851		1,175,645
Deferred offering costs		—		1,487,976		207,713
Prepayment and other current assets		12,104,106		21,253,616		2,966,890
Due from related parties		4,439,705		17,558		2,451
TOTAL CURRENT ASSETS		31,025,987		39,083,054		5,455,783
CURRENT LIABILITIES:
Bank loans		4,000,000		9,740,000		1,359,652
Payroll payables		1,045,829		1,559,791		217,738
Other payables		1,352,992		2,692,431		375,849
Deferred revenue		620,000		733,665		102,416
Operating lease liabilities – current		496,601		629,392		87,860
Due to related party		275,100		245,000		34,201
Taxes payable		1,973,260		1,799,309		251,174
TOTAL CURRENT LIABILITIES		9,763,782		17,399,588		2,428,890
WORKING CAPITAL		21,262,205		21,683,466		3,026,893

Accounts receivable, net

Our accounts receivable, net represent receivables from adult education institutions of comprehensive education supporting services. Billings to the customers are made generally on an annual basis over the contract term. Our accounts receivable balance decreased by approximately RMB2,142,000 (US$299,000) from approximately RMB10,564,000 as of December 31, 2024, to approximately RMB8,422,000 (US$1,176,000) as of June 30, 2025. These decreases were mainly because the accounts receivable as of December 31, 2024 had been partially collected as of June 30, 2025.

Prepayment and other current assets

Prepayment and other current assets consist of deposits, prepaid expenses and others. Our prepayment and other current assets increased by approximately RMB9,150,000 (US$1,277,000) from approximately RMB12,104,000 as of December 31, 2024, to approximately RMB21,254,000 (US$2,967,000) as of June 30, 2025, mainly due to the increase in prepaid expenses which amounted to approximately RMB4,251,000 (US$593,000), employee loans which amounted to approximately RMB2,444,000 (US$341,000) and other project investment which amounted to approximately RMB1,684,000 (US$235,000).

Loans

As of December 31, 2024 and June 30, 2025, we had total loans of approximately RMB4,000,000 and RMB10,740,000 (US$1,499,000), respectively. The following table sets forth the breakdown of our loans as of the dates indicated:


		Loan		Loan		Loan		Loan		Effective	****
As of June 30, 2025		commencement		maturity		amount in		amount in		interest	****
Short-term bank loans		date		date		RMB		USD		rate	****
Bank of China		August 30, 2024		August 25, 2025		3,000,000		418,784		3.35	%
Industrial and Commercial Bank of China		April 18, 2025		April 13, 2026		3,740,000		522,084		3.10	%
Bank of China		April 23, 2025		April 23, 2026		2,000,000		279,189		3.10	%
Chengdu Rural Commercial Bank		May 28, 2025		May27, 2026		1,000,000		139,595		3.20	%
Total short-term bank loans		****			****	9,740,000	****	1,359,652

Long-term bank loans
China Construction Bank		March 21, 2025		March 21, 2028	****	1,000,000	****	139,595		3.05	%

On August 30, 2024, Kebiao Technology obtained an RMB4,000,000 unsecured loan from Bank of China for a term of twelve months at a fixed interest rate of 3.35% per annum. On May 21, 2025, Kebiao Technology repaid RMB1,000,000 loan to Bank of China and the outstanding balance of loan from Bank of China was RMB3,000,000.

On March 21, 2025, Kebiao Technology obtained an RMB1,000,000 unsecured loan from China Construction Bank for a term of three years, with Mr. Yuan Li as a co-borrower, at a fixed interest rate of 3.05% per annum.

Lease Liabilities

We recognized total lease liabilities of approximately RMB768,000 and RMB1,192,000 (US$166,000) as of December 31, 2024 and June 30, 2025, respectively. As compared with the balance as of December 31, 2024, our lease liabilities as of June 30, 2025 increased by approximately RMB424,000 (US$59,000) as our newly acquired PRC subsidiaries signed the new lease agreement.

Contractual Obligations

The following table sets forth our contractual obligations as of December 31, 2024:


	Payment due by Period
		Less than			More than
	Total	1 Year	1 – 3 Years	3 – 5 Years	5 Years
	RMB	RMB	RMB	RMB	RMB
Bank loans	4,000,000	4,000,000	—	—	—
Lease liabilities	822,468	548,312	274,156	—	—
Deferred revenue	620,000	620,000	—	—	—
Total	5,442,468	5,168,312	274,156	—	—

The following table sets forth our contractual obligations as of June 30, 2025:


	Payment due by Period
		Less than			More than
	Total	1 Year	1 – 3 Years	3 – 5 Years	5 Years
	RMB	RMB	RMB	RMB	RMB
Bank loans	10,740,000	9,740,000	1,000,000	—	—
Lease liabilities	1,344,711	730,968	613,744	—	—
Deferred revenue	733,665	733,665	—	—	—
Total	12,818,376	11,204,633	1,613,744	—	—

Apart from what is shown above, we did not have any significant capital commitments, long-term obligations or guarantees as of December 31, 2024 and June 30, 2025.

Capital Expenditures

Our capital expenditures consist primarily of the purchase of fixed assets, intangible assets, and acquisition as a result of our business growth. Our capital expenditures amounted to approximately RMB47,706,000 and RMB527,000 (US$74,000) for the year ended December 31, 2024 and six months ended June 30, 2025, respectively.

We have historically funded our working capital needs primarily from cash generated from our operations, bank loans, advance payments from shareholders, and IPO proceeds. Our working capital requirements are affected by the efficiency of our operations, the numerical volume and dollar value of our revenue contracts, the progress or execution on our customer contracts, and the timing of accounts receivable collections. Our management believes that current levels of cash and cash flows from operations will be sufficient to meet our anticipated cash needs for at least the next 12 months from the date of this report. However, we may need additional cash resources in the future if we experience changed business conditions or other developments, and may also need additional cash resources in the future if we wish to pursue opportunities for acquisitions, strategic partnerships, or other similar initiatives. If it is determined that the cash requirements exceed our amounts of cash on-hand, we may seek to issue debt or equity securities or obtain a credit facility.

Cash flows for the six months ended June 30, 2024 and 2025


		For the six months ended June 30,
		2024		2025		2025
		RMB		RMB		US$
Net cash provided by / (used in) operating activities		3,756,665		(5,133,238)		(716,572)
Net cash used in investing activities		(2,050)		(526,888)		(73,551)
Net cash provided by financing activities		51,664,287		9,644,071		1,346,260
Effect of foreign exchange rate on cash and cash equivalent		135,753		(38)		(5)
Net increase in cash and cash equivalent		55,554,655		3,983,907		556,132
Total cash and cash equivalent, beginning of period		7,081,937		3,918,146		546,952
Total cash and cash equivalent, end of period	****	62,636,592	****	7,902,053	****	1,103,084

Operating activities

Net cash used in operating activities was approximately RMB5,133,000 (US$717,000) for the six months ended June 30, 2025, compared to approximately RMB3,757,000 provided by operating activities for the six months ended June 30, 2024. The change was primarily attributable to the following:

(i) net income decreased by approximately RMB9,565,000 (US$1,335,000) for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024;

(ii)accounts receivable decreased by approximately RMB592,000 (US$83,000) for the six months ended June 30, 2025, compared to an increase of approximately RMB1,579,000 for the six months ended June 30, 2024, mainly due to the collection of accounts receivables;

(iii) other assets increased by approximately RMB2,400,000 (US$335,000) for the six months ended June 30, 2025, compared to an increase of approximately RMB866,000 for the six months ended June 30, 2024;

(iv) accounts and other payables decreased by approximately RMB392,000 (US$55,000) for the six months ended June 30, 2025, compared to a decrease of approximately RMB497,000 for the six months ended June 30, 2024;

(v) payroll payables increased by approximately RMB363,000 (US$51,000) for the six months ended June 30, 2025, compared to an increase of approximately RMB262,000 for the six months ended June 30, 2024;

(vi) deferred revenue decreased by approximately RMB103,000 (US$14,000) for the six months ended June 30, 2025, compared to a decrease of approximately RMB58,000 for the six months ended June 30, 2024;

(vii) changes in lease liabilities — operating lease decreased by approximately RMB575,000 (US$80,000) for the six months ended June 30, 2025, compared to a decrease of approximately RMB67,000 for the six months ended June 30, 2024; and

(viii) tax payable decreased by approximately RMB226,000 (US$32,000) for the six months ended June 30, 2025, compared to an increase of approximately RMB1,013,000 for the six months ended June 30, 2024.

Investing activities

Net cash used in investing activities was approximately RMB527,000 (US$74,000) for the six months ended June 30, 2025, compared to approximately RMB2,050 of cash used in investing activities for the six months ended June 30, 2024. During the six months ended June 30, 2025, we spent approximately RMB30,000 (US$4,000) and approximately RMB943,000 (US$132,000) on the purchase of fixed assets and intangible assts respectively. During the six months ended June 30, 2024, we spent approximately RMB2,050 (US$286) on the purchase of fixed assets.

Financing activities

Net cash provided by financing activities was approximately RMB9,644,000 (US$1,346,000) for the six months ended June 30, 2025, compared to approximately RMB51,664,000 of cash provided by financial activities for the six months ended June 30, 2024.

During the six months ended June 30, 2025, net cash provided by financing activities included (i) approximately RMB7,740,000 (US$1,080,000) in proceeds from bank loans, (ii) approximately RMB1,000,000 (US$140,000) in repayment of loans, (iii) approximately RMB1,488,000 (US$208,000) in deferred offering costs related to the IPO, and (v) approximately RMB4,392,000 (US$613,000) in net repayment from related parties. During the six months ended June 30, 2024, net cash provided by financing activities included (i) approximately RMB1,000,000 (US$140,000) in repayment of loans, (ii) approximately RMB54,482,000 (US$7,605,000) in proceeds from issuance of ordinary shares upon the completion of our IPO and approximately RMB8,691,000 (US$1,213,000) in proceeds from issuance of ordinary shares upon exercise of the underwriters’ over-allotment option, (iii) approximately RMB10,515,000 (US$1,468,000) in deferred costs related to the IPO, and (iv) approximately RMB7,000 (US$1,000) in net repayment from related parties.

Off-Balance Sheet Arrangements

As of the date of this report, except the events mentioned below, we have not entered into any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity, or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk, or credit support to us or engages in leasing, hedging, or product development services with us.

Critical Accounting Policies, Judgements and Estimates

We prepare our unaudited condensed consolidated financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates, and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although there were no material changes made to the accounting estimates and assumptions in the past two periods, we continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience, and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates.

We believe that the estimates required to be made by management include, but are not limited to, useful lives of property and equipment and intangible assets, the incremental borrowing rate used in operating lease right-of-use assets and lease liabilities, the valuation of accounts receivable, the recoverability of long-lived assets, goodwill, contingencies and realization of deferred tax assets. We consider an accounting estimate critical if: (i) it requires us to make assumptions because the information was not available at the time or it includes matters highly uncertain at the time we were making our estimate and (ii) changes in the estimate could have a material impact on our condensed financial condition or results of operations. We determined there were no critical accounting estimates.