| Accounting Policies, by Policy (Policies) | 12 Months Ended |
| Dec. 31, 2021 |
| Accounting Policies [Abstract] | |
| Basis of Presentation and Consolidation | (a) Basis of Presentation and Consolidation The
consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the
United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company,
all its subsidiaries and those VIEs of which the Company is the primary beneficiary from the dates they were acquired or incorporated.
All intercompany balances and transactions have been eliminated in consolidation. In addition, the Group consolidates VIEs of which it
is deemed to be the primary beneficiary and absorbs all of the expected losses and residual returns of the entity. See Note 9 for details. |
| Use of Estimates | The
preparation of the consolidated financial statements in conformity with US GAAP requires management of the Group to make a number of
estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. The
Group evaluates estimates, including those related to the amounts of variable considerations of revenue contracts with respect to long-term
life insurance products, the allowance for credit losses of accounts receivable, contract assets, other receivables, held-to-maturity
securities, fair values of certain debt and equity investments, the useful lives of property, plant and equipment, impairment of long-lived
assets, goodwill, investments in affiliates and other long-term equity investments, and deferred tax valuation allowance among others.
The Group, based their estimates on historical experience and various other factors, believed to be reasonable under the circumstances,
that the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily
apparent from other sources. Actual results could differ from those estimates. |
| Cash and Cash Equivalents and Restricted Cash | (c) Cash and Cash Equivalents and Restricted Cash Cash
and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments, which have original maturities
of three months or less, and that are readily convertible to known amounts of cash, and have insignificant risk of changes in value related
to changes in interest rates. In
its capacity as an insurance agent, the Group collects premiums from certain insureds and remits the premiums to the appropriate insurance
companies. Accordingly, as reported in the consolidated statements of balance sheets, “premiums” are receivables from the insureds
of RMB25,290 and RMB24,459 as of December 31, 2020 and 2021, respectively. Unremitted net insurance premiums are held in a fiduciary
capacity until disbursed by the Group. The Group invests these unremitted funds only in cash accounts held for a short term, and reports
such amounts as restricted cash in the consolidated statements of financial position. Also, restricted cash balance includes the entrustment
deposit received from the members of eHuzhu, an online mutual aid platform operated by the Group, which is to be used during the one-year
operating cycle and is therefore classified as a current asset. The balance for entrustment deposit was RMB58,691 and RMB51,844 as of
December 31, 2020 and 2021, respectively. Further, restricted cash balance includes guarantee deposit required by China Banking and Insurance
Regulatory Commission (“CBIRC”) in order to protect insurance premium appropriation by insurance agency which is restricted
as to withdrawal for other than current operations. Thus, the Group classified the balance for guarantee deposit as a non-current asset.
The balance for guarantee was RMB20,689 and RMB15,595 as of December 31, 2020 and 2021, respectively. |
| Short Term Investments | (d) Short
Term Investments All
highly liquid investments with original maturities less than twelve months or investments that are expected to be realized in cash during
the next twelve months are classified as short-term investments. The Group accounts for short-term debt investments in accordance with
ASC Topic 320, Investments – Debt Securities Securities
that the Group has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and stated at amortized
cost less allowance for credit losses. The Group has no debt investments classified as trading. The Group’s short term investments
are mainly available-for-sale debt securities that do not have a quoted market price in an active market. Available-for-sale investments
are carried at fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive
income or loss. The Group benchmarks the values of its other investments against fair values of comparable investments and reference
to product valuation reports as of the balance sheet date, and categorizes all fair value measures of short term investments as level
2 of the fair value hierarchy. The
Group evaluates each individual available-for-sale debt securities periodically for impairment. For investments where the Group does
not intend to sell, the Group evaluates whether a decline in fair value is due to deterioration in credit risk. Credit-related impairment
losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit
losses on the consolidated balance sheet with corresponding adjustment in the consolidated statements of income and comprehensive income.
Subsequent increases in fair value due to credit improvement are recognized through reversal of the credit loss and corresponding reduction
in the allowance for credit loss. Any decline in fair value that is non-credit related is recorded in accumulated other comprehensive
income as a component of shareholder’s equity. As of December 31, 2021, there were no investments held by the Group that had been in
continuous unrealized loss position. No impairment loss on short
term investments was identified for years ended December 31, 2019, 2020 and 2021, respectively. |
| Accounts Receivable and Insurance Premium Receivables | (e) Accounts
Receivable and Contract Assets Accounts
receivable are recorded at the amount that the Group expects to collect and do not bear interest. Accounts receivable represent fees
receivable on agency and claims adjusting services primarily from insurance companies. Amounts collected on accounts receivable are included in net cash provided by operating
activities in the consolidated statements of cash flows. The
Group evaluates the collectability of its trade receivables and contract assets based on a combination of factors. The Group generally
does not require collateral on trade receivables and contract assets as the majority of the Group’s customers are large, well-established
insurance companies. The Group estimates allowances for expected credit losses using relevant available information from internal and
external sources, related to past events, current conditions, and reasonable and supportable forecasts. Credit loss expenses are assessed
quarterly and included in general and administrative expense on the consolidated statements of income and comprehensive income. Accounts
receivable, net is analyzed as follows:
As of December 31,
2020 2021
RMB RMB
Accounts receivable 413,580 418,266
Allowance for doubtful accounts (28,821 ) (27,934 )
Accounts receivable, net 384,759 390,332 The
following table summarizes the movement of the Group’s allowance for expected credit losses of accounts receivables: |
| Property, Plant and Equipment | (f) Property, Plant and Equipment Property,
plant and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the following
estimated useful lives, taking into account residual value:
Estimated useful life (Years) Estimated residual value
Building 20-36 0%
Office equipment, furniture and fixtures 3-5 0%-3%
Motor vehicles 5-10 0%-3%
Leasehold improvements 5 0% The
depreciation methods and estimated useful lives are reviewed regularly. The following table summarizes the depreciation expense recognized
in the consolidated statements of income and comprehensive income:
2019 2020 2021
RMB RMB RMB
Operating costs 216 199 791
Selling expenses 7,144 7,350 5,778
General and administrative expenses 8,920 10,109 11,773
Depreciation expense 16,280 17,658 18,342 |
| Goodwill and Other Intangible Assets | (g) Goodwill and Other Intangible Assets Goodwill
and amortization of intangible assets Goodwill
represents the excess of costs over fair value of net assets of businesses acquired in a business combination. Goodwill is not amortized,
but is tested for impairment at the reporting unit level at least on an annual basis at the balance sheet date or more frequently if
certain indicators arise. The Group operated in two reporting units for the year ended December 31, 2020 and 2021. The
impairment test is performed as of year-end or if an event occurs or circumstances change that would more likely than not reduce the
fair value of a reporting unit below its carrying amount by comparing the fair value of a reporting unit with its carrying value. If
the fair value of the reporting unit exceeds its carrying amount, goodwill is not impaired and no further testing is required. If the
fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying
amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated
to that reporting unit. The
impairment review is highly judgmental and involves the use of significant estimates and assumptions. These estimates and assumptions
have a significant impact on the amount of any impairment charge recorded. Estimates of fair value are primarily determined by using
discounted cash flows. Discounted cash flows method is dependent upon assumptions of future sales trends, market conditions and cash
flows of each reporting unit over several years. Actual cash flows in the future may differ significantly from those previously forecasted.
Other significant assumptions include growth rates and the discount rate applicable to future cash flows. In
2020 and 2021, management compared the carrying value of each reporting unit, inclusive of assigned goodwill, to its respective fair
value. The fair value of all reporting units was estimated by using the income approach. Based on this quantitative test, it was determined
that the fair value of each reporting unit tested exceeded its carrying amount and, therefore, the management concluded that goodwill
was not impaired as of December 31, 2020 and 2021, respectively. Identifiable
intangibles assets are required to be determined separately from goodwill based on their fair values. In particular, an intangible asset
acquired in a business combination should be recognized as an asset separate from goodwill if it satisfies either the “contractual-legal”
or “separability” criterion. Intangible assets with a finite economic life are carried at cost less accumulated amortization.
Amortization for identifiable intangible assets categorized as customer relationships is computed using the accelerated method, while
amortization for other identifiable intangible assets is computed using the straight-line method over the intangible assets’ economic
lives. Intangible assets with indefinite economic lives are not amortized but carried at cost less any subsequent accumulated impairment
losses. If an intangible asset that is not being amortized is subsequently determined to have a finite economic life, it will be tested
for impairment and then amortized prospectively over its estimated remaining economic life and accounted for in the same manner as other
intangible assets that are subject to amortization. Intangible assets with indefinite economic lives are tested for impairment annually
or more frequently if events or changes in circumstances indicate that they might be impaired. The intangible assets, net
consisted of trade names with a cost of RMB8,898 as of December 31, 2020 and 2021, respectively. The trade names have an estimated useful
life of 9.4 to 10 years and accumulated amortization of RMB8,854 and RMB8,898 as of December 31, 2020 and 2021, respectively. The residual
balance is RMB44 and nil Impairment
of intangible assets with definite lives The
Group evaluates the recoverability of identifiable intangible assets with determinable useful lives whenever events or changes in circumstances
indicate that these assets’ carrying amounts may not be recoverable. The Group measures the carrying amount of identifiable intangible
assets with determinable useful lives against the estimated undiscounted future cash flows associated with each asset. Impairment exists
when the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated
as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques,
including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions
about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results
may differ from assumed and estimated amounts. The Group recognized no impairment losses on identifiable intangible assets with determinable
useful lives in the years ended December 31, 2019, 2020 and 2021. Impairment
of indefinite-lived intangible assets An
intangible asset that is not subject to amortization is tested for impairment at least annually or more frequently if events or
changes in circumstances indicate that the asset might be impaired. Such impairment test is to compare the fair values of assets
with their carrying amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair values. The
estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow
valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates or market
price. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. Market prices
are based on a potential purchase quote from a third party, if any. The Group recognized no impairment losses on its indefinite-lived intangible
assets in the years ended December 31, 2019, 2020 and 2021. |
| Long-term Equity Investments | (i) Long-term Equity Investments Other
non-current assets mainly represent long-term equity investments accounted for under the measurement alternative method. Equity
securities without readily determinable fair value The
Group has long-term investments in equity security of certain privately held companies which the Group exerts no significant influence
or a controlling interest. As a result of adoption of “ Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement
of Financial Assets and Financial Liabilities During
each reporting period, the Group makes a qualitative assessment considering impairment indicators to separately evaluate whether each
of its equity securities without readily determinable fair value is impaired. Impairment indicators that the Group considers include,
but are not limited to a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of
the investee, factors such as negative cash flows from operations and working capital deficiencies that raise significant concerns about
the investee’s ability to continue as a going concern, current economic and market conditions and other specific information. If
a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance
with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment
loss in earnings equal to the difference between the carrying value and fair value. The
Group recorded an impairment of nil nil |
| Impairment of Long-Lived Assets | (j) Impairment
of Long-Lived Assets Property,
plant, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an
asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset
to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated
future cash flows, an impairment charge is recognized for the amount by which the carrying value of the asset exceeds the fair value
of the asset. |
| Insurance Premium Payables | Insurance
premium payables are insurance premiums collected on behalf of insurance companies but not yet remitted as of the balance sheet dates. |
| Treasury shares | Treasury
shares represent ordinary shares repurchased by the Group that are no longer outstanding and are held by the Group. The repurchased ordinary
shares are recorded whereby the total par value of shares acquired is recorded as treasury stock and the difference between the par value
and the amount of cash paid is recorded in additional paid-in capital. If additional paid-in capital is not available or is not sufficient,
the remaining amount is to reduce retained earnings. |
| Income Taxes | Income
taxes are accounted for under the asset and liability method. Deferred income taxes are recognized for temporary differences between
the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carryforwards
and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The
Group presents an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the statements of balance sheets as a reduction
to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent
a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the
tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position
or the tax law of the applicable jurisdiction does not require the Group to use, and the Group does not intend to use, the deferred tax
asset for such purpose, the unrecognized tax benefit is presented in the statements of balance sheets as a liability. |
| Share-based Compensation | All
forms of share-based payments to employees and nonemployees, including stock options and stock purchase plans, are treated the same as
any other form of compensation by recognizing the related cost in the consolidated statements of income and comprehensive income. The
Group recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis
over the requisite service period for the entire award, provided that the amount of compensation cost recognized at any date must at
least equal to the portion of the grant-date value of the award that is vested at that date. For awards with both service and performance
conditions, if each tranche has an independent performance condition for a specified period of service, the Group recognizes the compensation
cost of each tranche as a separate award on a straight-line basis; if each tranche has performance conditions that are dependent of activities
that occur in the prior service periods, the Group recognizes the compensation cost on a straight-line basis over the requisite service
period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. No compensation cost is recognized
for instruments that employees and nonemployees forfeit because a service condition or a performance condition is not satisfied. Employee
share-based compensation Compensation
cost related to employee stock options or similar equity instruments is measured at the grant date based on the fair value of the award
and is recognized over the service period, which is usually the vesting period. If an award requires satisfaction of one or more performance
or service conditions (or any combination thereof), compensation cost is recognized if the requisite service is rendered, while no compensation
cost is recognized if the requisite service is not rendered. Nonemployee
share-based compensation Consistent
with the accounting requirement for employee share-based compensation, nonemployee share-based compensation within the scope of Topic
718 are measured at grant-date fair value of the equity instruments, which the Group is obligated to issue when the service has been
rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Classification
of award Options
or similar instruments on shares shall be classified as liabilities instead of equity if either of the following conditions is met:
● The
underlying shares are classified as liabilities;
● The
Group can be required under any circumstances to settle the option or similar instrument
by transferring cash or other assets. The
Group measures a liability award under a share-based payment arrangement based on the award’s fair value remeasured at each reporting
date until the date of settlement. The corresponding credit is recorded as a share-based liability. Compensation cost for each period
until settlement shall be based on the change (or a portion of the change, depending on the percentage of the requisite service that
has been rendered at the reporting date) in the fair value of the instrument for each reporting date. The
Group measures an equity award based on the awards’ fair value on grant date and recognizes the compensation cost over the vesting periods,
with the corresponding credit recorded as additional paid-in capital. Modification
of an Award A
change in any of the terms or conditions of the awards is accounted for as a modification of the award. Incremental compensation
cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately
before its terms are modified, measured based on the fair value of the awards and other pertinent factors at the modification date.
For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For unvested awards,
the Group recognizes over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized
compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the
fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost
of the original award. Cancellation
of an Award A
cancellation of an award that is not accompanied by the concurrent grant of (or offer to grant) a replacement award or other valuable
consideration shall be accounted for as a repurchase for no consideration. Accordingly, any previously unrecognized compensation cost
shall be recognized immediately at the cancellation date. During
the year ended December 31, 2021, the Group did not grant any new share-based payment award. |
| Employee Benefit Plans | (o) Employee
Benefit Plans As
stipulated by the regulations of the PRC, the Group’s subsidiaries in the PRC participate in various defined contribution plans
organized by municipal and provincial governments for its employees. The Group is required to make contributions to these plans at a
percentage of the salaries, bonuses and certain allowances of the employees. Under these plans, certain pension, medical and other welfare
benefits are provided to employees. The Group has no other material obligation for the payment of employee benefits associated with these
plans other than the annual contributions described above. The contributions are charged to the consolidated statements of income and
comprehensive income as they become payable in accordance with the rules of the above mentioned defined contribution plans. |
| Revenue Recognition | The
Group’s revenue from contracts with insurance companies is derived principally from the provision of agency and claims adjusting
services, and insurance companies are defined as the Group’s customers under ASC 606 “Revenue from Contracts with Customers”
(“ASC 606”). The Group disaggregates its revenue from different types of service contracts with customers by principal service
categories, as the Group believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See Note
20 for detailed disaggregated revenue information that is disclosed for each reportable segment. The
following is a description of the accounting policy for the principal revenue streams of the Group. Insurance
agency services revenue The
Group derives agency revenue serving as a sales agent to distribute various life insurance and property and casualty
(“P&C”) insurance products on behalf of insurance companies by which the Group is entitled to receive an initial
commission from the insurance companies based on the premium paid by the policyholders for the related insurance policy sold. For
life insurance agency, the Group is also entitled to renewal commissions when the policyholder renews the policy within the renewal
term of the original policy as such life insurance products are typically long-term products. The
Group has identified its promise to sell insurance products on behalf of an insurance company as the performance obligation in its contracts
with the insurance companies. The Group’s performance obligation to the insurance company is satisfied and revenue is recognized
at a point in time when an insurance policy becomes effective. Specifically for life insurance agency business, certain contracts include
the promise to provide certain post-sales administrative services to policyholders on behalf of the insurance company, such as responding
to the policyholder inquiries, facilitating the renewal process and/or gathering information from the policyholder to assist the insurance
companies to update the contact information of the policy holder, the Group has concluded such services are administrative in nature
and immaterial, and none of these activities on their own results in a transfer of a good or services to the insurance company in the
context of the contract. Accordingly, no performance obligation exists after a policy becomes effective. Initial
placement of an insurance policy The
Group recognizes agency revenue related P&C insurance products (which is short term in nature and related premiums are collected upfront)
when an insurance policy becomes effective. The commission to be earned is required to be partially refunded contingently on policy cancellations.
Based on its past experience, subsequent commission adjustments in connection with P&C insurance policy cancellations have been de
minims to date, and are recognized upon notification from the insurance carriers. Actual commission and fee adjustments in connection
with the cancellation of P&C insurance policies were 0.1%, 0.2% and 0.1% of the total commission and fee revenues during years ended
December 31, 2019, 2020 and 2021, respectively. For
life insurance products, there is generally a 10 to 15 days hesitation period after an initial placement of a life insurance policy,
during which the policyholder has a legal right to unconditionally cancel the effective policy regardless of the reasons. According
to relevant terms of the insurance agency contracts with customers, the Group reconciles information of policies sold which also
includes policies that have been cancelled by policyholders within the hesitation period, with the insurance companies on a monthly
basis. Therefore, the Group estimates cancellation of policies that have become effective but are still within the hesitation period
based on subsequent actual data at each reporting date. The cancellation of an effective life insurance policy by the policyholder
after the hesitation period does not require the Group to refund initial commission to insurance companies, but rather impacts the
Group’s estimate on future commission related to renewal(s) of the policy. In
addition, for life insurance agency, the Group may receive a performance bonus from insurance companies as agreed and per contract provisions.
Once the Group achieves a certain sales volume based on respective agency agreements, the bonus will become due. Performance bonus represents
a form of variable consideration associated with certain sales volume, for which the Group earns commissions. The Group estimates the
amount of consideration with a constraint applied that will be received in the coming year such that a significant reversal of revenue
is not probable, and includes performance bonus as part of the transaction price. For the years ended December 31, 2019, 2020 and 2021,
the Group recognized contingent performance bonus of RMB58,124, RMB17,265 and RMB3,887, respectively. Renewals
of a life insurance policy For
the long-term life insurance products, in addition to the initial commission earned, the Group is also entitled to subsequent renewal
commission and compensation, and renewal performance bonus which represents variable considerations and are contingent on future renewals
of initial policies or the Group achieves its performance target. When
making estimates of the amount of variable consideration to which the Group expects to be entitled, the Group uses the expected value
method and evaluates many factors, including but not limited to, insurance companies mix, product mix, renewal term of various products,
renewal premium rates and commission rates, to determine the method(s) of measurement, relevant inputs and the underlying assumptions.
The Group considers constraints as well as when determining the amount which should be included in the transaction price. For
years prior to 2021, revenue related to the variable consideration is recorded when it is probable that a significant reversal in the
amount of cumulative revenue recognized will not occur, i.e., when a policyholder pays the renewal premium to the insurance company,
and the policy is renewed because the Group was not able to conclude a significant reversal to the estimated variable consideration is
not probable, considering factors such as a) the Group has limited history of selling its current life insurance products with its current
customers, such that the Group’s past experience in outdated products is of little predictive value in renewal(s) rate estimate; b) the
occurrence of a renewal is outside the Group’s control and the estimate of renewal premium rates is complex and requires significant
assumptions; and c) the contingency lasts across a long period of time. The
Group performs ongoing evaluation of the appropriateness of the constraint applied, and will consider the sufficiency of evidence
that would suggest that the long-term expectation underlying the assumptions has changed. Starting from January 1, 2021, the Group
believes that it has already accumulated adequate scale of historical data and experiences at a confidence level that through which
the Group can utilize to make a reasonable estimate of variable considerations over its portfolio of contracts. The estimated
renewal commissions are contingent on future renewals of initial policies or achievement of certain performance targets. Given the
material uncertainty around the future renewal of the insurance policies, the estimated renewal commissions expected to be collected
are recognized as revenue only to the extent that it is probable that a significant reversal in the amount of cumulative revenue
recognized will not occur when the uncertainty is subsequently resolved. The judgment and assumptions are continuously re-evaluated
and adjusted as needed along with the accumulation of historical experiences and data when new information becomes available. Actual renewal commissions in the future may differ significantly from those
previously estimated. For
the year ended December 31, 2019, 2020 and 2021, the Group recognized revenues related to estimated variable renewal commissions with
respect to long-term life insurance products amounting to nil nil Insurance
claims adjusting services revenue For
insurance claims adjusting services, performance obligations are considered met and revenue is recognized when the services are rendered
and completed, at the time loss adjusting reports are confirmed being received by insurance companies. The Group does not accrue any
service fee before the receipt of an insurance company’s acknowledgement of receiving the adjusting reports. Any subsequent adjustments
in connection with discounts which have been de minims to date are recognized in revenue upon notification from the insurance companies. Contract
balances The
Group’s contract balances include accounts receivable and contract asset. The balances of accounts receivable as of December 31,
2020 and 2021 are all derived from contracts with customers. See Note 2(e) for details. Started in 2021, the Group recognized revenues and correspondent contract
assets derived from estimated renewal commissions. Accordingly, the Group presented separately, in the consolidated balance sheets as
of December 31, 2021, contract assets that were previously included in the accounts receivable balance, net. The corresponding items have
been reclassified to conform with the current year's presentation. The
Group has no advance from customers in advance of revenue recognition, or contract liability and, therefore, none of the revenue
recognized in the current period was previously recognized as a contract liability. Practical
expedients and exemptions The
Group generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs
are recorded within sales and marketing expenses in the consolidated statements of income and comprehensive income, as the amortization
period is less than one year and the Group has elected the practical expedient included in ASC 606. The
Group has applied the optional exemption provided by ASC 606 to not disclose the value of remaining performance obligations not yet satisfied
as of period end for contracts with original expected duration of one year or less. Value-added
tax and surcharges The
Group presents revenue net of tax surcharges and value-added taxes incurred. The tax surcharges amounted to RMB21,916, RMB20,610 and
RMB19,235 for the years ended December 31, 2019, 2020 and 2021, respectively. Total
value-added taxes paid by the Group during the years ended December 31, 2019, 2020 and 2021 amounted to RMB197,067, RMB179,663 and RMB179,183
respectively. |
| Fair Value of Financial Instruments | (q) Fair Value of Financial Instruments Fair
value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required
or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and
considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires
an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial
instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the
fair value measurement. The three levels of inputs may be used to measure fair value include:
Level
1 Applies
to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level
2 Applies
to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for
the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets
or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations
in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level
3 Applies
to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement
of the fair value of the assets or liabilities. The
carrying values of the Group’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable,
insurance premium payables, other receivables, accounts payable and other payables, approximate their fair values due to the short-term
nature of these instruments. Measured
at fair value on a recurring basis As
of December 31, 2020 and 2021, information about inputs into the fair value measurements of the Group’s assets and liabilities
that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows.
Fair Value Measurements
Description As of December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
RMB RMB RMB RMB
Short-term investments - debt security 1,307,865 — 1,307,865 —
Fair Value Measurements
Description As of December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
RMB RMB RMB RMB
Short-term investments - debt security 857,682 — 870,682 — The
majority of debt security consists of investments in bank financial products, trust products and asset management plans that
normally pay a prospective fixed rate of return. These investments are recorded at fair values on a recurring basis. The Group
measured these investments at fair values and the unrealized gains or losses from the changes in fair values are included in
accumulated other comprehensive income or loss, at the balance sheet date. It is classified as Level 2 of the fair value hierarchy
since fair value measurement at the reporting date is benchmarked against fair value of comparable investments. Measured
at fair value on a non-recurring basis The
Group measures certain assets, including equity securities without readily determinable fair values, equity method investments and intangible
assets, at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of these investments and intangible
assets are determined based on valuation techniques using the best information available, and may include management judgments, future
performance projections, etc. An impairment charge to these investments is recorded when the cost of the investment exceeds its fair
value and this condition is determined to be other-than-temporary. Impairment charge to the intangible assets is recorded when their
carrying amounts may not be recoverable. Goodwill
(Note 6) and intangible assets (Note 2(g)) with indefinite lives are measured at fair value on a nonrecurring basis, and they are recorded
at fair value only when impairment is recognized by applying unobservable inputs such as forecasted financial performance of the acquired
business, discount rate, etc. to the discounted cash flow valuation methodology that are significant to the measurement of the fair value
of these assets (Level 3). Investments
in affiliates (Note 7) are measured at fair value on a nonrecurring basis, and they are recorded at fair value only when there is other-than-temporary-impairment.
The fair value of investment in an affiliate that is publicly listed is determined based on the market value of its share (Level 1) on
the date such impairment is recorded. |
| Foreign Currencies | The
functional currency of the Company is the United States dollar (“USD”). Assets and liabilities are translated at the exchange
rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses
are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are
shown as a separate component of other comprehensive income or loss in the consolidated statements of income and comprehensive income.
The Group has chosen the Renminbi (“RMB”) as their reporting currency. The
functional currency of most of the Company’s subsidiaries is RMB. Transactions in other currencies are recorded in RMB at the rates
of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into
RMB at rates of exchange in effect at the balance sheet dates. Exchange gains and losses are recorded in the consolidated statements
of income and comprehensive income. |
| Foreign Currency Risk | The
RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of
China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies
and international economic and political developments that affect supply and demand in the China Foreign Exchange Trading System market
of cash and cash equivalents and restricted cash. The Group had aggregate amounts of RMB277,029 and RMB595,428 of cash and cash equivalents
and restricted cash denominated in RMB as of December 31, 2020 and 2021, respectively. |
| Translation into USD | The
consolidated financial statements of the Group are stated in RMB. Translations of amounts from RMB into USD are solely for the convenience
of the readers outside of China and were calculated at the rate of US$1.00 = RMB6.3726, representing the noon buying rate in the City
of New York for cable transfers of RMB on December 30, 2021, the last business day in fiscal year 2021, as set forth in H.10 statistical
release of the Federal Reserve Bank of New York. The translation is not intended to imply that the RMB amounts could have been, or could
be, converted, realized or settled into USD at such rate. |
| Segment Reporting | (u) Segment Reporting As of December 31, 2020
and 2021, the Group operated two segments: (1) the insurance agency segment, which mainly consists of providing agency services for P&C
insurance products and life insurance products to individual clients, and (2) the claims adjusting segment, which consists of providing
pre-underwriting survey services, claim adjusting services, disposal of residual value services, loading and unloading supervision services,
and consulting services. Operating segments are defined as components
of an enterprise for which separate financial information is available and evaluated regularly by the Group’s chief operating decision
maker in deciding how to allocate resources and in assessing performance. Substantially all revenues
of the Group are derived in the PRC and all long-lived assets are located in the PRC. |
| Earnings per Share (“EPS”) or ADS | (v) Earnings per Share (“EPS”) or ADS Basic EPS is calculated by
dividing the net income available to common shareholders by the weighted average number of ordinary shares /ADS outstanding during the
year. Diluted EPS is calculated by using the weighted average number of ordinary shares /ADS outstanding adjusted to include the potentially
dilutive effect of outstanding share-based awards, unless their inclusion in the calculation is anti-dilutive. The contingently issuable
shares /ADS related to the 521 Plan (see Note 19(b) for details), are subject to fulfillment of the performance conditions as stipulated
under the 521 Plan. Therefore, these shares are excluded from basic earnings per share until the shares are fully vested upon the achievement
of performance conditions under the 521 Plan by the Participants. In December 2020, the Group cancelled the 521 Plan and no impact in
2021. |
| Advertising Costs | (w) Advertising Costs Advertising costs are expensed
as incurred. Advertising costs amounted to RMB44,387, RMB37,389 and RMB35,300 for the years ended December 31, 2019, 2020 and 2021, respectively. |
| Leases | (x) Leases The
Group leases office space, vehicles and certain equipment under operating leases for terms ranging from short term (under 12 months) to
7 years. The Group does not have options to extend or terminate leases, as the renewal or termination of relevant lease is on negotiation
basis. As a lessee, the Group does not have any financing leases and none of the leases contain material residual value guarantees or
material restrictive covenants. The Group’s office space leases typically have initial lease terms of 2 to 7 years, and vehicles and equipment
leases typically have an initial term of 12 months or less. The Group’s office space leases include fixed rental payments. The lease payments
for the Group’s office space leases do not consist of variable lease payments that depend on an index or a rate. The Group determines whether
a contract contains a lease at contract inception. A contract contains a lease if there is an identified asset and the Group has the right
to control the use of the identified asset. At the commencement of each lease, management determines its classification as an operating
or finance lease. For leases that qualify as operating leases, the Group recognizes a right-of-use (“ROU”) asset and a lease
liability based on the present value of the lease payments over the lease term in the consolidated statements of balance sheets at commencement
date. As all of the leases do not have implicit rates available, the Group uses incremental borrowing rates based on the information available
at lease commencement date in determining the present value of future payments. The incremental borrowing rates are estimated to approximate
the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased assets are
located. The ROU asset is measured
at the amount of the lease liabilities with adjustments, if applicable, for lease prepayments made prior to or at lease commencement,
initial direct costs incurred and lease incentives. For office space leases, the Group identifies the lease and non-lease components (e.g.,
common-area maintenance costs) and accounts for non-lease components separately from lease component. The Group’s office space lease contracts
have only one separate lease component and have no non-components (e.g., property tax or insurance). Most of the office space lease contracts
have no non-lease components. For the office space lease contracts include non-lease components, the fixed lease payment is typically
itemized in the office space lease contract for separate lease component and non-lease component. Therefore, the Group does not allocate
the consideration in the contract to the separate lease component and the non-lease component. Lease expense for minimum
lease payments is recognized on a straight-line basis over the lease term. The Group has made an accounting policy election to exempt
leases with an initial term of 12 months or less without a purchase option that is likely to be exercised from being recognized on the
balance sheet. Payments related to those leases continue to be recognized in the consolidated statement of income and comprehensive income
on a straight-line basis over the lease term. In addition, the Group does
not have any related-party leases or sublease transactions. The Group elected to consistently
account for eligible current and future concessions resulting directly from COVID-19 by accounting for the concessions as if they were
made under the enforceable rights included in the original agreements. The rent concessions received in 2020 and 2021 amounted to RMB832
and nil |
| Accumulated Other Comprehensive Income | (y) Accumulated Other Comprehensive Income The Group presents comprehensive
income in the consolidated statements of income and comprehensive income with net income in a continuous statement. Accumulated other comprehensive
income mainly represents foreign currency translation adjustments, changes in fair value of short term investments and share of other
comprehensive income of the affiliates for the period. |
| Recently Adopted Accounting Pronouncements | (z) Recently Adopted
Accounting Pronouncements Income Taxes (Topic
740) – |
| Recently Issued Accounting Standard Not Yet Adopted | (aa) Recently Issued
Accounting Standard Not Yet Adopted The following new accounting
standard has not yet been adopted but could affect the Group’s consolidated financial statements in the future. In November 2021, the FASB
issued ASU 2021-10, Government Assistance (Topic 832) |
