Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Jupai Holdings Limited |
Entity File Number | 001-37485 |
Entity Filer Category | Non-accelerated Filer |
Amendment Flag | false |
Entity Central Index Key | 0001616291 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding | 191,052,818 |
Entity Well-known Seasoned Issuer | No |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Current Reporting Status | Yes |
Document Accounting Standard | U.S. GAAP |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --12-31 |
ICFR Auditor Attestation Flag | false |
Entity Address, Address Line One | Building 4, No. 1588 Xinyang Road |
Entity Address, Address Line Two | Lingang New Area |
Entity Address, Address Line Three | China (Shanghai) Pilot Free Trade Zone |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201413 |
Entity Address, Country | CN |
Entity Incorporation, State or Country Code | E9 |
Entity Bankruptcy Proceedings, Reporting Current | false |
Auditor Name | B F Borgers CPA PC |
Auditor Location | Lakewood, CO |
Auditor Firm ID | 5041 |
Document Financial Statement Error Correction [Flag] | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Building 4, No. 1588 Xinyang Road |
Entity Address, Address Line Two | Lingang New Area |
Entity Address, Address Line Three | China (Shanghai) Pilot Free Trade Zone |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201413 |
Entity Address, Country | CN |
Contact Personnel Name | Min Liu |
City Area Code | 21 |
Local Phone Number | 5226-5925 |
Contact Personnel Email Address | maine.liu@jpinvestment.cn |
American Depository Shares | |
Document Information [Line Items] | |
Title of 12(g) Security | American depositary shares, each representing six ordinary shares |
No Trading Symbol Flag | true |
Ordinary shares | |
Document Information [Line Items] | |
Title of 12(g) Security | Ordinary shares, par value US$0.0005 per share |
No Trading Symbol Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 261,275,422 | $ 36,799,874 | ¥ 480,260,071 |
Restricted cash | 15,730,822 | 2,215,640 | |
Accounts receivable (net of allowance for doubtful accounts of RMB25,435,692 and RMB25,435,692 as of December 31, 2022 and 2023, respectively) | 2,280,000 | 321,131 | |
Trade and other receivables (net of allowance for doubtful accounts of RMB11,443,605 and RMB11,718,489 as of December 31, 2022 and 2023, respectively) | 111,553 | 15,712 | 384,576 |
Amounts due from related parties (net of allowance for doubtful accounts of RMB69,880,157 and RMB75,443,757 as of December 31, 2022 and 2023, respectively) | 12,570,000 | ||
Other current assets | 3,203,886 | 451,258 | 3,398,964 |
Total current assets | 282,601,683 | 39,803,615 | 496,613,611 |
Long-term investments | 200,000,000 | 28,169,411 | 200,000,000 |
Intangible assets, net | 138,447 | ||
Amounts due from related parties - non-current | 422,570,000 | 59,517,740 | 206,186,144 |
Investment in affiliates | 29,886,783 | ||
Property, plant, and equipment, net | 600,627 | 84,597 | 1,075,028 |
Other non-current assets (net of allowance for doubtful accounts of RMB644,447 and RMB644,447 as of December 31, 2022 and 2023, respectively) | 3,731,720 | 525,602 | 4,959,173 |
Right-of-use assets | 8,491,453 | 1,195,996 | 11,448,145 |
Total Assets | 917,995,483 | 129,296,961 | 950,307,331 |
Current liabilities: | |||
Accrued payroll and welfare expenses (including accrued payroll and welfare expense of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB4,331,827 and RMB2,000,000 as of December 31, 2022 and 2023, respectively) | 5,504,000 | 775,222 | 11,028,008 |
Income tax payable (including income tax payable of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB651,587 and RMB(21,213,724) as of December 31, 2022 and 2023, respectively) | 28,381,583 | 3,997,462 | 29,812,224 |
Other tax payable (including other tax payable of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil and nil as of December 31, 2022 and 2023, respectively) | 1,863,046 | 262,405 | 2,744,062 |
Amounts due to related parties - current (including amounts due to related parties-current of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB115,748,800 and RMB50,122,823 as of December 31,2022 and 2023, respectively) | 5,992,010 | ||
Deferred revenue from related parties (including deferred revenue from related parties of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB1,954,481 and RMB1,903,302 as of December 31,2022 and 2023, respectively) | 1,903,302 | 268,074 | 2,091,273 |
Deferred revenue (including deferred revenue of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil and nil as of December 31,2022 and 2023, respectively) | 1,621,856 | ||
Other current liabilities (including other current liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of RMB (271,617) and RMB2,178 as of December 31, 2022 and 2023, respectively) | 48,083,188 | 6,772,375 | 38,841,490 |
Total current liabilities | 85,735,119 | 12,075,538 | 92,130,923 |
Deferred revenue - non-current (including deferred revenue of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil and nil as of December 31, 2022 and 2023, respectively) | 1,179,245 | 166,093 | 1,179,245 |
Operating Lease Liabilities - non-current (including operating lease liabilities of the consolidated VIEs and VIEs' subsidiaries without recourse to Jupai Holdings Limited of nil and nil as of December 31, 2022 and 2023, respectively) | 3,732,204 | 525,670 | 7,285,438 |
Total Liabilities | 90,646,568 | 12,767,301 | 100,595,606 |
Commitments and Contingencies (Note 16) | |||
Shareholders’ Equity: | |||
Ordinary Shares (USD0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 191,052,818 and 191,052,818 shares issued and outstanding, as of December 31, 2022 and 2023, respectively) | 597,739 | 84,190 | 597,739 |
Additional paid-in capital | 1,093,762,610 | 154,053,242 | 1,093,762,610 |
Accumulated deficit | (320,552,501) | (45,148,875) | (296,885,493) |
Accumulated other comprehensive income | 53,531,219 | 7,539,715 | 52,227,157 |
Total Jupai shareholders' equity | 827,339,067 | 116,528,272 | 849,702,013 |
Noncontrolling interests | 9,848 | 1,388 | 9,712 |
Total Equity | 827,348,915 | 116,529,660 | 849,711,725 |
TOTAL LIABILITIES AND SHAREHOLERS' EQUITY | ¥ 917,995,483 | $ 129,296,961 | ¥ 950,307,331 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares |
Accounts receivable, allowance for doubtful accounts | ¥ 25,435,692 | ¥ 25,435,692 |
Trade and other receivables, allowance for doubtful accounts | 11,718,489 | 11,443,605 |
Amounts due from related parties, allowance for doubtful accounts | 75,443,757 | 69,880,157 |
Other non-current assets, allowance for doubtful accounts | 644,447 | 644,447 |
Accrued payroll and welfare expenses | 5,504,000 | 11,028,008 |
Income tax payable | 28,381,583 | 29,812,224 |
Other tax payable | 1,863,046 | 2,744,062 |
Deferred revenue - current from related parties | 1,903,302 | 2,091,273 |
Deferred revenue - current | 1,621,856 | |
Other current liabilities | 48,083,188 | 38,841,490 |
Deferred revenue - non-current | 1,179,245 | 1,179,245 |
Operating Lease Liability | ¥ 3,732,204 | ¥ 7,285,438 |
Shareholders’ Equity: | ||
Ordinary shares, shares authorized | shares | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | shares | 191,052,818 | 191,052,818 |
Ordinary shares, shares outstanding | shares | 191,052,818 | 191,052,818 |
Consolidated VIE and VIE's subsidiaries | ||
Accrued payroll and welfare expenses | ¥ 2,000,000 | ¥ 4,331,827 |
Income tax payable | (21,213,724) | 651,587 |
Other tax payable | 0 | 0 |
Amounts due to related parties - current | 50,122,823 | 115,748,800 |
Deferred revenue - current from related parties | 1,903,302 | 1,954,481 |
Deferred revenue - current | 0 | 0 |
Other current liabilities | 2,178 | (271,617) |
Deferred revenue - non-current from related parties | 0 | 0 |
Deferred revenue - non-current | 0 | 0 |
Operating Lease Liability | ¥ 0 | ¥ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Revenues | ||||
Revenues | ¥ 33,795,196 | $ 4,759,954 | ¥ 103,199,550 | ¥ 360,572,997 |
Business taxes and related surcharges | (228,118) | (32,130) | 34,571 | (1,518,858) |
Net revenues | 33,567,078 | 4,727,824 | 103,234,121 | 359,054,139 |
Operating cost and expenses: | ||||
Cost of revenues | (5,817) | (819) | (45,383,978) | (156,114,484) |
Selling expenses | (122,773) | (17,292) | (7,746,679) | (90,062,565) |
General and administrative expenses | (28,705,418) | (4,043,074) | (156,701,338) | (119,449,923) |
Other operating income | 3,365,373 | 5,397,270 | ||
Total operating cost and expenses | (28,834,008) | (4,061,185) | (206,466,622) | (360,229,702) |
Income (loss) from operations | 4,733,070 | 666,639 | (103,232,501) | (1,175,563) |
Interest income | 2,930,516 | 412,755 | 4,686,664 | 7,515,933 |
Investment loss | (2,708,446) | (12,261,086) | ||
Loss on litigation | (21,442,000) | (282,450,000) | ||
Gain from deconsolidation of subsidiary | 173,338,410 | |||
Other income (loss) | 1,175,715 | 165,596 | (836,304) | (32,782) |
Income (loss) before taxes and gain from equity in affiliates | 8,839,301 | 1,244,990 | 49,805,823 | (288,403,498) |
Income tax expense | (2,619,402) | (368,935) | (2,155,121) | (2,345,334) |
Loss from equity in affiliates | (29,886,771) | (4,209,464) | (31,546,640) | (3,888,959) |
Net income (loss) | (23,666,872) | (3,333,409) | 16,104,062 | (294,637,791) |
Net loss (income) attributable to noncontrolling interests | (136) | (19) | 3,807,344 | 26,776,069 |
Net income (loss) attributable to ordinary shareholders | ¥ (23,667,008) | $ (3,333,428) | ¥ 19,911,406 | ¥ (267,861,722) |
Net income (loss) per share: | ||||
Basic | (per share) | ¥ (0.12) | $ (0.02) | ¥ 0.1 | ¥ (1.35) |
Diluted | (per share) | ¥ (0.12) | $ (0.02) | ¥ 0.1 | ¥ (1.35) |
Weighted average number of shares used in computation: | ||||
Basic | shares | 191,052,818 | 191,052,818 | 191,405,669 | 198,854,216 |
Diluted | shares | 191,052,818 | 191,052,818 | 191,405,669 | 198,854,216 |
Third party | ||||
Revenues | ||||
Revenues | ¥ 3,804,537 | $ 535,858 | ¥ 68,246,670 | ¥ 234,173,007 |
Related party | ||||
Revenues | ||||
Revenues | ¥ 29,990,659 | $ 4,224,096 | ¥ 34,952,880 | ¥ 126,399,990 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | ¥ (23,666,872) | $ (3,333,409) | ¥ 16,104,062 | ¥ (294,637,791) |
Other comprehensive income (loss), net of tax of nil: | ||||
Change in cumulative foreign currency translation adjustment | 1,304,062 | 183,673 | 19,059,483 | (4,707,094) |
Other comprehensive income (loss) | 1,304,062 | 183,673 | 19,059,483 | (4,707,094) |
Comprehensive income (loss) | (22,362,810) | (3,149,736) | 35,163,545 | (299,344,885) |
Less: comprehensive income (loss) attributable to noncontrolling interest | 136 | 19 | (3,807,344) | (26,721,650) |
Comprehensive income (loss) attributable to ordinary shareholders | ¥ (22,362,946) | $ (3,149,755) | ¥ 38,970,889 | ¥ (272,623,235) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity | CNY (¥) | USD ($) | Ordinary shares CNY (¥) shares | Additional paid-in capital CNY (¥) | Accumulated deficit CNY (¥) | Accumulated other comprehensive income CNY (¥) | Total Jupai shareholders' equity CNY (¥) | Noncontrolling interests CNY (¥) |
Balance at Dec. 31, 2020 | ¥ 1,144,561,949 | ¥ 623,201 | ¥ 1,148,823,625 | ¥ (48,935,177) | ¥ 37,929,187 | ¥ 1,138,440,836 | ¥ 6,121,113 | |
Balance (in shares) at Dec. 31, 2020 | shares | 199,051,046 | |||||||
Net income (loss) | (294,637,791) | (267,861,722) | (267,861,722) | (26,776,069) | ||||
Share-based compensation | 644,654 | 644,654 | 644,654 | |||||
Restricted shares vested | ¥ 968 | (968) | ||||||
Restricted shares vested (in shares) | shares | 300,000 | |||||||
Repurchase of shares | (5,226,037) | ¥ (14,336) | (5,211,701) | (5,226,037) | ||||
Repurchase of shares ( in shares) | shares | (4,488,228) | |||||||
Foreign currency translation adjustment | (4,707,094) | (4,761,513) | (4,761,513) | 54,419 | ||||
Balance at Dec. 31, 2021 | 840,635,681 | ¥ 609,833 | 1,144,255,610 | (316,796,899) | 33,167,674 | 861,236,218 | (20,600,537) | |
Balance (in shares) at Dec. 31, 2021 | shares | 194,862,818 | |||||||
Net income (loss) | 16,104,062 | 19,911,406 | 19,911,406 | (3,807,344) | ||||
Repurchase of shares | (3,494,977) | ¥ (12,094) | (3,482,883) | (3,494,977) | ||||
Repurchase of shares ( in shares) | shares | (3,810,000) | |||||||
Deconsolidation of a subsidiary | (22,592,524) | (47,010,117) | (47,010,117) | 24,417,593 | ||||
Foreign currency translation adjustment | 19,059,483 | 19,059,483 | 19,059,483 | |||||
Balance at Dec. 31, 2022 | 849,711,725 | ¥ 597,739 | 1,093,762,610 | (296,885,493) | 52,227,157 | 849,702,013 | 9,712 | |
Balance (in shares) at Dec. 31, 2022 | shares | 191,052,818 | |||||||
Net income (loss) | (23,666,872) | $ (3,333,409) | (23,667,008) | (23,667,008) | 136 | |||
Foreign currency translation adjustment | 1,304,062 | 1,304,062 | 1,304,062 | |||||
Balance at Dec. 31, 2023 | ¥ 827,348,915 | $ 116,529,660 | ¥ 597,739 | ¥ 1,093,762,610 | ¥ (320,552,501) | ¥ 53,531,219 | ¥ 827,339,067 | ¥ 9,848 |
Balance (in shares) at Dec. 31, 2023 | shares | 191,052,818 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income (loss) | ¥ (23,666,872) | $ (3,333,409) | ¥ 16,104,062 | ¥ (294,637,791) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 565,174 | 79,603 | 9,139,691 | 11,110,956 |
Loss from disposal of property and equipment | (102,217) | (14,397) | 755,921 | 535,935 |
Loss from disposal of intangible assets | 0 | 10,500,476 | ||
Allowance for doubtful accounts | 5,838,484 | 822,333 | 28,923,874 | 9,400,000 |
Loss from equity in affiliates | 29,886,771 | 4,209,464 | 31,546,640 | 3,888,959 |
Gain (loss) from disposal of subsidiaries and investment in affiliates | (173,338,410) | 601,384 | ||
Loss on investment in equity securities | 11,790,000 | |||
Share-based compensation | 644,654 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (2,280,000) | (321,131) | 80,672 | (128,982) |
Other receivables | (1,860) | (262) | 593,135 | (6,947,627) |
Other assets | 1,422,532 | 200,359 | 2,315,800 | 4,195,181 |
Trading securities | (74,789) | (166,465) | ||
Amounts due from related parties | 622,545 | 87,684 | (3,440,913) | 551,569 |
Accrued payroll and welfare expenses | (5,524,008) | (778,040) | (2,483,251) | (21,339,142) |
Income tax payable | (1,430,641) | (201,502) | 1,083,514 | (143,707) |
Other tax payable | (881,016) | (124,089) | 85,388 | (1,893,263) |
Deferred revenue | (1,621,856) | (228,434) | (7,309,102) | 285,905 |
Other current liabilities | 2,653,143 | 373,687 | 24,337,515 | 272,101,301 |
Deferred revenue from related parties | (187,972) | (26,475) | (2,741,697) | (16,107,460) |
Deferred taxes | 724,480 | 151,473 | ||
Net cash provided by (used in) operating activities | 5,292,207 | 745,392 | (63,196,994) | (26,107,120) |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment and intangible assets | 3,744,991 | (5,704,317) | ||
Proceeds from disposal of property, plant and equipment | 149,890 | 21,112 | ||
Purchase of long-term investments | (2,819,390) | |||
Payment for investment in affiliates | (34,581,400) | |||
Proceeds from disposal of investment in affiliates | 1,545,000 | 8,245,615 | ||
Origination of short-term loan | (30,000,000) | |||
Collection of short-term loan | 50,000,000 | |||
Proceeds from disposal of subsidiary, net of cash disposed | (92,678,833) | |||
Loan to related parties | (210,000,000) | (29,577,881) | ||
Collection of loan to related parties | 5,000,000 | |||
Net cash provided by (used in) investing activities | (209,850,110) | (29,556,770) | (87,388,842) | (9,859,492) |
Cash flows from financing activities: | ||||
Repurchase of shares | (3,174,100) | (4,462,990) | ||
Net cash used in financing activities | (3,174,100) | (4,462,990) | ||
Effect of exchange rate changes | 1,304,076 | 183,675 | 21,920,756 | (4,707,092) |
Net decrease in cash and cash equivalents | (203,253,827) | (28,627,703) | (131,839,180) | (45,136,694) |
Cash, cash equivalents and restricted cash—beginning of the year | 480,260,071 | 67,643,216 | 612,099,251 | 657,235,945 |
Cash, cash equivalents and restricted cash—end of the year | 277,006,244 | 39,015,513 | 480,260,071 | 612,099,251 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for income taxes | ¥ 4,050,043 | $ 570,437 | ¥ 369,858 | ¥ 2,337,568 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Reconciliation of Cash and cash equivalents and restricted cash reported within the consolidated balance sheets | ||||||
Cash and cash equivalents | ¥ 261,275,422 | $ 36,799,874 | ¥ 480,260,071 | $ 36,799,874 | ¥ 601,769,949 | |
Restricted cash | 15,730,822 | 2,215,640 | 10,329,302 | |||
Cash, cash equivalents and restricted cash | ¥ 277,006,244 | $ 39,015,513 | ¥ 480,260,071 | $ 67,643,216 | ¥ 612,099,251 | ¥ 657,235,945 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. Organization and Principal Activities Jupai Holdings Limited (the ‘‘Company’’ or the “Group”), formerly Jupai Investment Group, was incorporated on August 13, 2012 in the Cayman Islands. The Company, through its subsidiaries and consolidated variable interest entity, Shanghai Jupai Investment Group Co., Ltd. (‘‘Shanghai Jupai’’ or ‘‘the VIE’’) and the VIE’s subsidiaries provides wealth management and asset management services to the high net worth individuals in the People’s Republic of China (‘‘PRC’’). The VIE’s subsidiaries began offering services in 2010 through Shanghai Jupai, which was founded in the PRC on July 28, 2010. The Company’s significant subsidiaries as of December 31, 2023 include the following: Date of Place of Percentage of Shanghai Juxiang Investment Management Consulting Co., Ltd. July 16, 2013 PRC 100 % Baoyi Investment Consulting (Shanghai) Co., Ltd. (“Shanghai July 16, 2015 PRC 100 % Jupai HongKong Investment Limited (“Jupai Hong Kong”) August 21, 2012 Hong Kong 100 % Shanghai Yedu's significant subsidiaries as of December 31, 2023 include the following: Date of Place of Percentage of Shanghai Yidexin Equity Investment Management Co., Ltd ("Yidexin") July 16, 2015 PRC 100 % |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Principal Accounting Policies | 2. Summary of Principal Accounting Policies (a) Basis of Presentation The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to: govern the financial and operating policies; appoint or remove the majority of the members of the board of directors; cast a majority of votes at the meeting of the board of directors. U.S. GAAP provides guidance on the identification of VIE and financial reporting for entities over which control is achieved through means other than voting interests. The Company evaluates each of its investments to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. Although PRC laws and regulations do not prohibit foreign-invested enterprises from obtaining such license, in practice, the supervisory authority, at its discretion, generally does not issue such license to a foreign-invested third-party mutual fund sales company. Therefore, the Company decided to conduct such business in China through Shanghai Jupai and its subsidiaries which are PRC domestic companies. Since the Company does not have any equity interests in Shanghai Jupai, in order to exercise effective control over its operations, the Company, through its wholly owned subsidiary Shanghai Juxiang, entered into a series of contractual arrangements, or Control Documents with Shanghai Jupai and its shareholders (“Jupai VIE”), pursuant to which the Company is entitled to receive effectively all economic benefits generated from Shanghai Jupai shareholders’ equity interests in it. Since the Company acquired Scepter in July 2015, Scepter, its subsidiaries, Shanghai E-Cheng and Shanghai E-Cheng’s subsidiaries were included in the consolidated financial statements. Scepter is engaged in asset management service business. Foreign-invested enterprises incorporated in the PRC are not expressively prohibited from providing asset management services in PRC. However, according to local business practice, as a general partner of a fund, Scepter must invest as a limited partner before the fund is established. Some investments of the fund managed by the Scepter are in the foreign-invested enterprise prohibited, or not encouraged industries, which requires all investors not to be foreign-invested enterprises. Therefore Scepter provides asset management services through its VIE entities. To provide Scepter effective control over and the ability to receive substantially all of the economic benefits of its VIE and its subsidiaries, Scepter’s wholly owned subsidiary Shanghai Baoyi, entered into a series of contractual arrangements with Shanghai E-Cheng, the “VIE” and its respective shareholders, respectively. (Hereafter, the VIE structure under Scepter is called “Scepter VIE”.). On August 24, 2021, Shanghai Yedu acquired the whole equity interest of Shanghai Yidexin Equity Investment Management Co., Ltd. from Shanghai E-Cheng, and to exercise effective control over Yidexin Equity Investment Management Co., Ltd. (“Yedu VIE”), Shanghai Baoyi entered into a series of contractual arrangements with Shanghai Yedu and the shareholders of Shanghai Yedu. The agreements of Jupai VIE, Scepter VIE and Yedu VIE that provide the Company effective control over the VIE include: (i) Voting Rights Proxy Agreement (1) Jupai VIE: Each shareholder of Shanghai Jupai has executed a power of attorney to grant Shanghai Juxiang the power of attorney to act on his or her behalf on all matters pertaining to Shanghai Jupai and to exercise all of his or her rights as a shareholder of the Shanghai Jupai, including but not limited to convene, attend and vote at shareholders’ meetings, designate and appoint directors and senior management members. The proxy agreement will remain in effect unless Shanghai Juxiang terminates the agreement by giving a 30 -day prior written notice or gives its consent to the termination by Shanghai Jupai. (2) Scepter VIE: Each of the shareholders of Shanghai E-Cheng irrevocably granted any person designated by Shanghai Baoyi the power to exercise all voting rights to which he will be entitled to as shareholder of Shanghai E-Cheng at that time, including the right to declare dividends, appoint and elect board members and senior management members and other voting rights. Each shareholder voting right proxy agreement has a term of twenty years , unless it is early terminated by all parties in writing or pursuant to provision of this agreement. The term of the agreement will be automatically extended for one year upon the expiration, if Shanghai Baoyi gives the other Parties written notice requiring the extension thereof and the same mechanism will apply subsequently upon the expiration of each extended term. (3) Yedu VIE: Each shareholder of Shanghai Yedu irrevocably appointed a nominee authorized by Shanghai Baoyi as its attorney-in-fact to exercise on such shareholder’s behalf any and all rights that such shareholder has in respect of their respective equity interests in Shanghai Yedu, including but not limited to the power to vote on its behalf on all matters of Shanghai Yedu requiring shareholder approval in accordance with the articles of association of Shanghai Yedu. The initial term of the proxy agreement is 20 years and it may be automatically extended with a 30-day prior written notice given by Shanghai Baoyi on a yearly basis. (ii) Call Option Agreement (1) Jupai VIE: The shareholders of Shanghai Jupai granted Shanghai Juxiang or its designated representative(s) an irrevocable and exclusive option to purchase their equity interests or assets in Shanghai Jupai when and to the extent permitted by PRC law. Shanghai Juxiang or its designated representative(s) has sole discretion as to when to exercise such options, either in part or in full. Without Shanghai Juxiang’s written consent, the shareholders of Shanghai Jupai shall not transfer, donate, pledge, or otherwise dispose any equity interests of Shanghai Jupai in any way. The acquisition price for the shares or assets will be the minimum amount of consideration permitted under the PRC law at the time when the option is exercised. The agreement can be early terminated by Shanghai Juxiang, but not by Shanghai Jupai or its shareholders. (2) Scepter VIE: Each of shareholders of Shanghai E-Cheng has entered into an Exclusive Call Option Agreement with Baoyi. Pursuant to these agreements, each of the shareholders of Shanghai E-Cheng has granted an irrevocable and unconditional option to Shanghai Baoyi or its designees to acquire all or part of such shareholder’s equity interests in Shanghai E-Cheng at its sole discretion, to the extent as permitted by PRC laws and regulations then in effect. The consideration for such acquisition of all equity interests in Shanghai E-Cheng will be equal to the registered capital of Shanghai E-Cheng, and if PRC law requires the consideration to be greater than the registered capital, the consideration will be the minimum amount as permitted by PRC law. In addition, Shanghai E-Cheng irrevocably and unconditionally granted Baoyi an exclusive option to purchase, to the extent permitted under the PRC law, all or part of the assets of Shanghai E-Cheng. The exercise price for purchasing the assets of Shanghai E-Cheng will be equal to its respective book values, and if PRC law requires the price to be greater than the book value, the price will be the minimum amount as permitted by PRC law. The call option may be exercised by Shanghai Baoyi or its designees. (3) Yedu VIE: Each of the shareholders of Shanghai Yedu irrevocably and unconditionally granted to Shanghai Baoyi or its designee an option to purchase at any time, to the extent permitted under PRC law, all or a portion of their respective equity interests in Shanghai Yedu. Also, Shanghai Baoyi or its designee has the right to acquire any and all of the assets of Shanghai Yedu. The acquisition price for the shares or assets will be the corresponding capital contribution in Shanghai Yedu’s registered capital or the corresponding assets’ net booking value, or, if the minimum amount of consideration permitted under the PRC law is higher than the capital contribution or the net booking value, will be such minimum amount at the time of the exercise of the option. Without Shanghai Baoyi’s prior written consent, Shanghai Yedu’s shareholders cannot transfer their equity interests in Shanghai Yedu, and Shanghai Yedu cannot transfer its assets. The agreement will not be terminated until after all of the equity interest and assets of Shanghai Yedu have been transferred to Shanghai Baoyi or its designee. The agreements that transfer economic benefits to the Company include: (i) Consulting Services Agreement, Operating Agreement, Exclusive Support Agreement and Exclusive Business Operation Agreement (1) Jupai VIE: Shanghai Jupai engages Shanghai Juxiang as its exclusive technical and operational consultant and under which Shanghai Juxiang agrees to assist in arranging the financial support necessary to conduct Shanghai Jupai’s operational activities. Shanghai Jupai shall not seek or accept similar services from other providers without the prior written approval of Shanghai Juxiang. The agreements will be effective as long as Shanghai Jupai exists. Shanghai Juxiang may terminate this agreement at any time by giving a prior written notice to Shanghai Jupai. (2) Scepter VIE: Pursuant to an Exclusive Support Agreement between Shanghai Baoyi and Shanghai E-Cheng, Shanghai Baoyi provides Shanghai E-Cheng with a series of consultancy services on an exclusive basis and is entitled to receive related fees. The term of this Exclusive Support Agreement will expire upon dissolution of Shanghai E-Cheng. Unless expressly provided by this agreement, without prior written consent of Shanghai Baoyi, Shanghai E-Cheng may not engage any third party to provide the services offered by Shanghai Baoyi under this agreement. (3) Yedu VIE: Shanghai Baoyi provides Shanghai Yedu with a series of technology and business support and relevant consulting services on an exclusive basis. Shanghai Baoyi is entitled to receive service fees which shall be approximately equal to Shanghai Yedu’s net revenue. The term of the exclusive business operation agreement is 20 years and it may be extended with Shanghai Baoyi’s written confirmation. Shanghai Baoyi is entitled to terminate the agreement early at any time by sending a written notice 30 days in advance, for any reason whereas Shanghai Yedu cannot early terminate the agreement. (ii) Equity Interest Pledge Agreement (1) Jupai VIE: The shareholders of Shanghai Jupai pledged all of their equity interests in Shanghai Jupai to Shanghai Juxiang as collateral to secure their obligations under the above agreement. If the shareholders of Shanghai Jupai or Shanghai Jupai breach their respective contractual obligations, Shanghai Juxiang, as pledgee, will be entitled to certain rights, including the right to dispose the pledged equity interests. Pursuant to the agreement, the shareholders of Shanghai Jupai shall not transfer, assign or otherwise create any new encumbrance on their respective equity interest in Shanghai Jupai without prior written consent of Shanghai Juxiang. This pledge will remain effective until all the guaranteed obligations are performed. Mr. Ni’s equity interest in Shanghai Jupai in favor of Shanghai Juxiang is still under the process of registration with the local branch of regulatory authorities in Shanghai and has not been completed yet. (2) Scepter VIE: Each of the shareholders of Shanghai E-Cheng has also entered into an equity pledge agreement with Shanghai Baoyi. Pursuant to which these shareholders pledged their respective equity interest in Shanghai E-Cheng to guarantee the performance of the obligations of Shanghai E-Cheng. If Shanghai E-Cheng or its shareholders breach any of their respective obligations under any of these agreements, Shanghai Baoyi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Pursuant to the equity pledge agreement, each shareholder of Shanghai E-Cheng cannot transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in Shanghai E-Cheng without prior written consent of Shanghai Baoyi. The equity pledge right enjoyed by Shanghai Baoyi will expire when shareholders of Shanghai E-Cheng have fully performed their respective obligations under the above agreements. The shareholders of Shanghai E-Cheng are in the process of applying with the local branch of SAIC in Shanghai for registration of their equity interest pledge. (3) Yedu VIE: The shareholders of Shanghai Yedu pledged all of their equity interests in Shanghai Yedu to Shanghai Baoyi to guarantee the performance of the obligations of Shanghai Yedu. If Shanghai Yedu or its shareholders breach any of their respective obligations under any of these agreements, Shanghai Baoyi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Upon the due registration, this pledge will remain effective until all the contractual obligations are performed and the guaranteed loan has been paid off. (iii) Loan Agreement for Scepter VIE. Under the Loan Agreement among the shareholders of Shanghai E-Cheng and Shanghai Baoyi, Shanghai Baoyi granted an interest-free loan to the shareholders of Shanghai E-Cheng, solely for their purchase of the equity interests of Shanghai E-Cheng. The loan is interest free and the term of the loan is (i) the expiration of 20 years from the date of the loan agreement, (ii) the expiration of Shanghai Baoyi’s operation term or (iii) the expiration of Shanghai E-Cheng’s operation term whichever is the earliest. Under the above agreements, the shareholders of Shanghai Jupai/Shanghai E-Cheng/Shanghai Yedu irrevocably granted Shanghai Juxiang/Shanghai Baoyi the power to exercise all voting rights to which they were entitled. In addition, Shanghai Juxiang/Shanghai Baoyi have the option to acquire all of the equity interests in Shanghai Jupai/Shanghai E-Cheng/Shanghai Yedu, to the extent permitted by the then-effective PRC laws and regulations, for nominal consideration. Finally, Shanghai Juxiang/Shanghai Baoyi is entitled to receive service fees for certain services to be provided to Shanghai Jupai/Shanghai E-Cheng/Shanghai Yedu. The Call Option Agreement and Voting Rights Proxy Agreement provide the Company effective control over the VIEs and their subsidiaries, while the Equity Interest Pledge Agreements secure the obligations of the shareholders of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu under the relevant agreements. Because the Company, through Shanghai Juxiang and Shanghai Baoyi, has (i) the power to direct the activities of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu that most significantly affect the entities’ economic performance and (ii) the right to receive substantially all of the benefits from Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu, the Company is deemed the primary beneficiary of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu. Accordingly, the Company has consolidated the Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu’s financial results of operations, assets and liabilities, and cash flows in the Company’s consolidated financial statements. The Company believes that the contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu and their shareholders may have or develop interests that conflict with the Group’s interests, which may lead them to pursue opportunities in violation of the aforementioned contractual arrangements. Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu and their shareholders could fail to obtain the proper operating licenses or fail to comply with other regulatory requirements. As a result, the PRC government could impose fines, new requirements or other penalties on the VIEs or the Group, mandate a change in ownership structure or operations for the VIEs or the Group, restrict the VIEs or the Group’s use of financing sources or otherwise restrict the VIEs or the Group’s ability to conduct business. The aforementioned contractual agreements may be unenforceable or difficult to enforce. The equity interests under the Equity Interest Pledge Agreements have been registered by the shareholders of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu with the relevant office of the administration of industry and commerce, however, the VIEs or the Group may fail to meet other requirements. Even if the contractual agreements are enforceable, they may be difficult to enforce given the uncertainties in the PRC legal system. The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIEs have failed to comply with the legal obligations required to effectuate such contractual arrangements. As of December 31, 2023, the Group had variable interests in various investment funds and contractual funds that are VIEs but determined that it was not the primary beneficiary and, therefore, was not consolidating the VIEs. The maximum potential financial statement loss the Group could incur if the investment funds and contractual funds were to default on all of their obligations is the loss of value of the interests in such investments that the Group holds, including equity investments recorded in investment in affiliates and long-term investment in the consolidated balance sheet. The Company’s maximum exposure to loss associated with identified nonconsolidated VIEs in which it holds variable interests was nil and nil as of December 31, 2022 and 2023, respectively. The following amounts and balances of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu and their subsidiaries were included in the Company’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2022 2023 2023 RMB RMB USD Cash and cash equivalents 875,322 972,324 136,949 Accounts receivable, net — 2,280,000 321,131 Other receivables, net 239,884 — — Amounts due from related parties, net of allowance for doubtful 68,183,377 — — Other current assets 693,670 574,771 80,955 Total assets 69,992,253 3,827,095 539,035 Accrued payroll and welfare expenses 4,331,827 2,000,000 281,694 Income tax payable 651,587 ( 21,213,724 ) ( 2,987,891 ) Amounts due to related parties-current 115,748,800 50,122,823 7,059,652 Deferred revenue — current from related parties 1,954,481 1,903,302 268,074 Other current liabilities ( 271,617 ) 2,178 307 Total liabilities 122,415,078 32,814,579 4,621,837 Years ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Net revenues 211,170,667 37,880,143 5,784,763 814,767 Third party 121,437,225 23,344,191 — — Related party 89,733,442 14,535,952 5,784,763 814,767 Operating cost and expenses ( 245,086,293 ) ( 45,452,147 ) ( 3,914,178 ) ( 551,300 ) Net loss ( 318,719,762 ) ( 61,667,033 ) 2,527,592 356,004 Net income (loss) attributable to ordinary shareholders ( 292,177,990 ) ( 57,615,283 ) 2,527,592 356,004 Cash flows provided by (used in) operating activities: ( 94,348,770 ) ( 34,058,526 ) 97,003 13,663 Cash flows provided by (used in) investing activities: 4,117,700 ( 91,320,453 ) — — The VIEs contributed an aggregate of 59 %, 37 % and 1 7 % of the consolidated net revenues for the years ended December 31, 2021, 2022 and 2023, respectively and an aggregate of 109 %, ( 289 )% and ( 11 )% of the consolidated net income (loss) attributable to ordinary shareholders for the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2022 and 2023, the VIEs accounted for an aggregate of 7 % and 0.4 %, respectively, of the consolidated total assets. There are no consolidated assets of the VIEs and their subsidiaries that are collateral for the obligations of the VIEs and their subsidiaries and can only be used to settle the obligations of the VIEs and their subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholder of the VIEs or entrustment loans to the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserve and their share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 13 for disclosure of restricted net assets. (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include assumptions used to determine the allowance for doubtful accounts, valuation allowance for deferred tax assets, fair value measurement of underlying investment portfolios of the funds that the Group invests, assumptions related to the consolidation of entities in which the Group holds variable interests, estimates involved in revenue recognition, assumptions used to measure impairment of long-lived assets, assumptions used to measure impairment of equity investments and assumption used to determine the useful life of intangible assets acquired. (d) Concentration of Credit Risk The Company is subject to potential significant concentrations of credit risk consisting principally of cash and cash equivalents, restricted cash, accounts receivable, other receivables, amounts due from related party and investments. All of the Group’s cash and cash equivalents, restricted cash and a majority of investments are held with financial institutions that Group management believes to be of high credit quality. Substantively all revenues were generated within China. There were no product providers or underlying corporate borrowers which accounted for 10% or more of total revenues for the years ended December 31, 2021, 2022, and 2023. (e) Investments in Affiliates Affiliated companies are entities over which the Group does not control. The Group accounts for common-stock-equivalent equity investments in entities over which it has significant influence but does not own a majority voting interest or otherwise control using the equity method. The Group generally considers an ownership interest of 20 % or higher to represent significant influence. Under the equity method, the Group’s share of the post-acquisition profits or losses of affiliated companies is recognized in the statements of operations and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. When the Group’s share of losses in an affiliated company equals or exceeds its carrying amount of the investment in the affiliated company, the Group does not recognize further losses, unless the Group has guaranteed the obligations of the affiliated company or is otherwise committed to provide further financial support for the affiliated company. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary, which is recorded in loss from equity in affiliates. The Group recorded impairment loss of RMB 2.6 million, RMB 28.7 million, and RMB 29.9 million for the years ended December 31, 2021, 2022, and 2023. The Group also considers it has significant influence over the funds that it serves as general partner or fund manager, and the Group’s ownership interest in these funds as limited partner is generally much lower than 5 %. These funds are not consolidated by the Group based on the facts that the Group does not have control over the funds given substantive kick-out rights held by unrelated limited partners that allow them to remove the general partner without cause, and/or substantive participating rights that allow them to participate in certain financial and operating decisions of the limited partnership in the ordinary course of business. The equity method of accounting is accordingly used for investments by the Group in these funds. If an investee fund meets the definition of an Investment Company, it’s required to be reported at fair value. The Group records its equity pick-up based on its percentage ownership of the investee funds’ net income. For real estate projects, the group recorded its pick-up one quarter in arrears to enable it to have more time to collect and analyze the investments’ operating results. For other investee funds, the group recorded its pick-up based on current period net income. (f) Fair Value of Financial Instruments The Group records its certain financial assets at fair value on a recurring basis. Fair value reflects 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 Group applies a fair value hierarchy that 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 hierarchy is as follows: 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 asset 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 asset or liabilities for which there are inputs generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair value are therefore determined using model based techniques that include option pricing models, discounted cash flow models, and similar techniques. Certain assets of the Group were measured at fair value on a non-recurring basis subsequent to initial recognition. These assets include investment in equity securities without readily determinable fair value and investment in affiliates in 2023. See Note 5 and Note 6, respectively. (g) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. (h) Restricted Cash The Group’s restricted cash represents cash restricted by court related to a lawsuit in which the group is a defendant. The restriction will be subsequently removed when the case is closed. (i) Accounts receivable, net Accounts receivable mainly represent amounts due from product providers or underlying corporate borrowers and are recorded net of allowance for doubtful accounts. The Group considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the product providers or underlying corporate borrowers’ payment history, creditworthiness, financial conditions of the product providers or underlying corporate borrowers and industry trend. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. The Group also makes specific allowance if there is strong evidence indicating that the accounts receivable is likely to be unrecoverable. Accounts receivable balances are written off after all collection efforts have been exhausted. The Group accrued allowance for doubtful accounts of nil , nil , and nil for the years ended December 31, 2021, 2022, and 2023. (j) Other receivables, net Other receivables mainly represent loan receivables and deposits for lessor and other suppliers. The Company records other receivables at net realizable value consisting of the carrying amount less an allowance for uncollectable accounts as needed. The allowance for uncollectable accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing other receivables. The Company determines the allowance based on age of the amounts due, the financial condition of the borrowers, and economic conditions. The Company recorded allowance for doubtful accounts of RMB 9.4 million, RMB 0.003 million and RMB 0.3 million for the years ended December 31, 2021, 2022, and 2023. The Company has not accrued any interest income on loan receivable as the amount is indeterminable, it will be recognized when cash received. (k) Investments Debt Securities The Group invests in debt securities and accounts for the investments based on the nature of the products invested, and the Group’s intent and ability to hold the investments to maturity. The Group’s investments in debt securities include trust products, asset management plans and real estate funds that have a stated maturity and normally pay a prospective fixed rate of return. The Group classifies the investments in debt securities as held-to-maturity when it has both the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. Long-term investments are reclassified as short-term when their remaining contractual maturity date is less than one year. The Group reviews, at individual security level, its held-to-maturity investments for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the amortized cost basis of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Group’s intent and ability to hold the investment to determine whether an other-than-temporary impairment has occurred. The Group recognizes other-than-temporary impairment in earnings if it has the intent to sell the debt security or if it is more-likely-than-not that it will be required to sell the debt security before recovery of its amortized cost basis |
Net Income (loss) per Share
Net Income (loss) per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (loss) per Share | 3. Net Income (loss) per Share Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive: As of December 31, 2021 2022 2023 Share options 7,816,863 7,399,661 7,371,961 Restricted shares 898,896 242,844 211,944 Total 8,715,759 7,642,505 7,583,905 |
Allowance for doubtful accounts
Allowance for doubtful accounts | 12 Months Ended |
Dec. 31, 2023 | |
Allowance For Doubtful Accounts [Abstract] | |
Allowance for doubtful accounts | 4. Allowance for doubtful accounts The movement of the allowance for accounts receivable, other receivables and amounts due from related parties was as following: Years Ended December 31, 2021 2022 2023 RMB RMB RMB Balance as of January 1 135,635,759 145,035,759 107,403,901 Provisions for doubtful accounts 9,400,000 28,923,874 5,838,484 Write-off — ( 66,555,732 ) — Balance as of December 31 145,035,759 107,403,901 113,242,385 As of December 31, 2023, the Group recorded allowance for accounts receivable, other receivables, amounts due from related parties and other non-current assets was RMB 25,435,692 , RMB 11,718,489 , RMB 75,443,757 and RMB 644,447 ,respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 5. Investments The following table summarizes the Group’s investment balances: As of December 31, 2022 2023 2023 RMB RMB USD Short-term investments Equity securities - trading securities — — — Long-term investments Equity securities without readily determinable fair values 200,000,000 200,000,000 28,169,411 Total investments 200,000,000 200,000,000 28,169,411 Debt securities consist of investments in trust products that have stated maturity and normally pay a prospective fixed rate of return, and are carried at amortized cost. The Group recorded investment income on these investments of RMB 131,137 , nil and nil for the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2022 and 2023, investments in equity securities without readily determinable fair value were RMB 200,000,000 and RMB 200,000,000 . There have been no adjustments for price changes to the equity investments without readily determinable fair values for the year ended December 31, 2023. The Group recorded impairment loss of RMB 10.0 million, RMB 2.8 million and nil for the years ended December 31, 2021, 2022 and 2023, respectively. |
Investment in Affiliates
Investment in Affiliates | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investment in Affiliates | 6. Investment in affiliates The following table summarizes the Group’s investment in affiliates by RMB and ownership percentage: As of December 31 2022 2023 2023 RMB % RMB % USD % Private equity funds that the Company serves as general partner or fund manager — — — — — — Shanghai Jiakun Real Estate Development Co., Ltd ("Jiakun") (1) 29,886,783 100.0 % — — — — Total investments 29,886,783 — — — — — The investments above are accounted for using equity method of accounting. (1) The Group invested RMB 30,000,000 for 44 % equity interest in Shanghai Jiakun Real Estate Development Co., Ltd in January, 2021 and accounted for the investment with equity method accounting. The main operating business is real estate development and management. In 2023, due to the overall decline in the Chinese real estate industry, Shanghai Jiakun Real Estate Development Co., Ltd was affected. The company faced serious operational and financial crises. The management evaluated the value of its equity and decided to make a full provision for impairment of this investment. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, Net | 7. Property, Plant, and Equipment, Net Property, plant, and equipment, net consists of the following: As of December 31, 2022 2023 2023 RMB RMB USD Leasehold improvements 51,917,017 51,917,017 7,312,359 Furniture, fixtures and equipment 6,125,266 5,396,172 760,035 Motor vehicles 1,951,239 1,480,019 208,456 Total 59,993,522 58,793,208 8,280,850 Accumulated depreciation ( 58,918,494 ) ( 58,192,581 ) ( 8,196,253 ) Property, plant, and equipment, net 1,075,028 600,627 84,597 Depreciation expense was RMB 7,342,946 , RMB 4,599,402 and RMB 426,728 for the years ended December 31, 2021, 2022and 2023, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | 8. Intangible Assets, Net Intangible assets are comprised of the following: As of December 31, 2022 2023 2023 RMB RMB USD Customer contracts 67,574,728 68,720,605 9,679,095 Software 3,504,421 3,504,421 493,587 Less: Accumulated amortization - customer contracts ( 64,656,059 ) ( 64,656,059 ) ( 9,106,615 ) Less: Accumulated amortization - software ( 3,365,974 ) ( 3,504,421 ) ( 493,587 ) Intangible assets subject to amortization 3,057,116 4,064,546 572,480 Foreign currency translation adjustment ( 2,918,669 ) ( 4,064,546 ) ( 572,480 ) Intangible assets, net 138,447 — — Insurance Brokerage Licenses included in the intangible assets are assessed as indefinite life and are not subject to amortization. Amortization expense related to other intangible asset was RMB 3,768,010 , RMB 4,540,289 and RMB 138,447 for the years ended December 31, 2021, 2022 and 2023, respectively. Loss from disposal of intangible assets was nil for year 2023. The amortization expense for the next five years and thereafter as of December 31, 2022 and 2023, are as follows: As of December 31 2022 2023 RMB RMB Within 1 year 30,196 - Between 1 and 2 years 30,196 - Between 2 and 3 years 30,196 - Between 3 and 4 years 30,196 - Over 4 years and thereafter 17,663 - Total 138,447 - |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 9. Leases The Group’s noncancelable operating leases consist of leases for office space. The Group is the lessee under the terms of the operating leases. For the year ended December 31, 2023, the operating lease cost was RMB 4.8 million. The Group's operating leases have remaining lease terms that range from approximately one year to two years . As of December 31, 2023, the weighted average remaining lease term and weighted average discount rate were 1.88 years and 5.7 %, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation In July 2014, the Group adopted the 2014 Share Incentive Plan (“the 2014 Plan”), which allows the Group to offer a variety of share-based incentive awards to employees, officers, and directors. The maximum number of shares that may be issued pursuant to all awards under the 2014 Plan shall initially be 17,570,281 ordinary shares, and will be increased automatically by 5 % of the then total outstanding shares on an as-converted fully diluted basis on each of the third, sixth and ninth anniversaries of the effective date of the 2014 Plan. In December 2015, the Group amended the 2014 Plan to increase the number of shares reserved for future awards under the 2014 Plan by 9,367,739 ordinary shares to 26,938,020 ordinary shares. Share Options : On July 1, 2014 and April 2, 2015, the Group granted 12,056,000 and 1,061,600 options to purchase ordinary shares to certain employees at an exercise price of USD 0.48 and USD 1.00 per share, respectively. The options expire ten years from the date of grant and vest ratably at each grant date anniversary over a period of three years . Replacement of the Company’s option for Scepter’s option (“Options Replacement Program”). Effective upon the Company’s IPO and in connection with its acquisition of Scepter (“Replacement Date”), the Company exchanged 2,525,000 of its options (“Replacement Options”) under the 2014 Plan for the 505,000 of the options (“Replaced Options”) that had been previously granted to certain employees of Scepter and E-House under Scepter’s 2014 Share Incentive Plan (“Scepter Plan”), with other terms unchanged. The Company capitalized RMB 13,702,194 as part of the cost of acquiring Scepter in regard to the Options Replacement Program, which the Company computed as the sum of (1) the Replacement Date fair value of the Replaced Options granted to the employees of E-House, and (2) the fair value of the Replaced Options granted to the employees of Scepter on the Replacement Date multiplied by the ratio of pre-acquisition services to the requisite service period of such Replaced Options, which is the same as the requisite service period of the Replacement Options. The Group uses the current share price as the fair value of underlying ordinary shares. No compensation expense related to previously issued stock options was recorded for years ended December 31, 2021, 2022 and 2023. A summary of option activity under the 2014 Plan during the year ended December 31, 2023. Number of Weighted Remaining Aggregate RMB RMB Outstanding, as of January 1, 2023 7,399,661 4.03 1.62 Forfeited ( 27,700 ) 3.40 Outstanding, as of December 31, 2023 7,371,961 4.14 0.62 — Exercisable as of December 31, 2023 7,371,961 4.14 0.62 — No options were granted for years ended December 31, 2021, 2022 and 2023. The total intrinsic value of options exercised were nil , nil and nil for the years ended December 31, 2021, 2022 and 2023. As of December 31, 2023, there was nil unrecognized compensation expense related to unvested share options granted under the 2014 Plan. Non-vested restricted shares: On January 4, 2019, the Company granted 900,000 restricted shares to certain senior management. The fair value of the restricted shares on grant date is USD 0.73 . The restricted shares vest ratably at each grant date anniversary over a period of three years . On January 29, 2021, the Company granted 1,008,552 restricted shares to top sells personnel and backstage staff. The fair value of the restricted shares on grant date is USD 0.32 . The half of restricted shares vest ratably on the fourth anniversary of the grant date, and the rest vest on the fifth anniversary of the grant date. A summary of restricted share activity under the 2014 Plan during the year ended December 31, 2023. Number of Weighted RMB Unvested, as of January 1, 2023 242,844 3.28 Granted — — Forfeited ( 30,900 ) 2.23 Vested — — Unvested, as of December 31, 2023 211,944 3.53 The total fair value of non-vested restricted shares as of December 31, 2022 was RMB 748,162 . The fair value of non-vested restricted shares was computed based on the fair value of the Group’s ordinary shares on the grant date. The total fair value of shares vested during the years ended December 31, 2021, 2022 and 2023, was RMB 1,398,000 , nil and nil , respectively. The Company recorded compensation expense of RMB 644,654 , nil and nil for the years ended December 31, 2021, 2022 and 2023. As of December 31, 2023, there was RMB 205,413 total unrecognized compensation expense related to unvested restricted shares granted under the 2014 Plan. That cost is expected to be recognized over a weighted-average period of 1.60 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes Cayman Islands and British Virgin Islands (“BVI”) Under the current laws of the Cayman Islands and BVI, the Company is not subject to tax on its income or capital gains. In addition, the Cayman Islands and BVI do not impose withholding tax on dividend payments. PRC and Hong Kong Under the current Hong Kong Inland Revenue Ordinance, our subsidiaries established in Hong Kong are subject up to 16.5 % progressive income tax on their taxable income generated from operations in Hong Kong. In addition, payments of dividends from our Hong Kong subsidiaries to us are not subject to any Hong Kong withholding tax. Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25 % on taxable income. The tax expense comprises: Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Current Tax 2,193,861 1,430,641 2,619,402 368,935 Deferred Tax 151,473 724,480 — — Total 2,345,334 2,155,121 2,619,402 368,935 Reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes is as follows: Years Ended December 31, 2021 2022 2023 PRC income tax rate 25.00 % 25.00 % 25.00 % Expenses not deductible for income tax purposes ( 26.45 )% 10.69 % 0.00 % Losses not deductible for income tax purposes ( 0.81 )% 31.12 % ( 35.50 )% Valuation allowance of deferred tax assets 2.16 % ( 67.26 )% 8.97 % Different tax rate of subsidiary operation in other jurisdiction ( 0.71 )% 4.78 % ( 0.04 )% Additional payments for previous year's corporate income taxes 14.01 % Effective income tax rate - 0.81 % 4.33 % 12.44 % The principal components of the deferred income tax asset and liabilities are as follows: As of December 31, 2022 2023 2023 RMB RMB USD Deferred tax assets: Accrued expenses — — — Tax loss carry forward 36,182,919 28,747,826 4,049,047 Gross deferred tax assets 36,182,919 28,747,826 4,049,047 Valuation allowance ( 36,182,919 ) ( 28,747,826 ) ( 4,049,047 ) Net deferred tax assets — — — Movement of the valuation allowance is as follows: As of December 31, 2021 2022 2023 2023 RMB RMB RMB USD Balance as of January 1 63,563,642 56,542,077 36,182,919 5,096,258 Additions (utilization) ( 6,223,503 ) 6,799,359 ( 1,936,931 ) ( 272,811 ) Write-offs ( 798,062 ) ( 27,158,517 ) ( 5,498,162 ) ( 774,400 ) Balance as of December 31 56,542,077 36,182,919 28,747,826 4,049,047 The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more likely than not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the future periods provided for in the tax law. As of December 31, 2023, operating loss carried forward amounted to RMB 118.8 million for the PRC and Hong Kong income tax purposes. The loss carrying forward expired from 2021. Valuation allowance of RMB 36,182,919 and RMB 28,747,826 was recorded as of December 31, 2022 and 2023 for the entities that are not more likely than not to realize the net operating loss carry forward. Undistributed earnings of the Company’s PRC subsidiaries of approximately RMB 595.1 million at December 31, 2023 are considered to be indefinitely reinvested and, accordingly, no provision for PRC dividend withholding tax has been provided thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Group would be subject to the then applicable PRC tax laws and regulations. The amounts of unrecognized deferred tax liabilities for these earnings are in the range of RMB 29.8 million to RMB 59.5 million, as the withholding tax rate of the profit distribution will be 5 % or 10 % depending upon whether the immediate offshore companies can enjoy the preferential withholding tax rate of 5 %. Aggregate undistributed earnings of the Company’s VIEs and its VIEs’ subsidiaries located in the PRC that are available for distribution to the Company were nil as of December 31, 2023. A deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amount in domestic subsidiaries. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Company has not recorded any such deferred tax liability attributable to the undistributed earnings of its financial interest in VIEs because it believes such excess earnings can be distributed in a manner that would not be subject to income tax. The Group has made its assessment of the level of tax authority for each tax position (including the potential application of interest and penalties) based on the technical merits, and has measured the unrecognized tax benefits associated with the tax positions. The Group does not anticipate any significant increases or decreases to its liability for unrecognized tax benefits within the next 12 months. According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB 0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is 10 years. There is no statute of limitations in the case of tax evasion. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans The Group’s PRC subsidiaries, VIEs and the VIEs’ subsidiaries are required by law to contribute a certain percentages of applicable salaries for retirement benefits, medical insurance benefits, housing funds, unemployment and other statutory benefits. The PRC government is directly responsible for the payments of such benefits. The total contribution for such employee benefits were RMB 39.9 million, RMB 19.9 million and RMB 1.3 million for the years ended December 31, 2021, 2022 and 2023 which is recorded in operating costs and expenses in the consolidated statements of operations in the period those contributions are due. The Group has no ongoing obligation to its employees subsequent to its contributions to such employee benefit plans. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2023 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Restricted Net Assets | 13. Restricted Net Assets Pursuant to the relevant laws and regulations in the PRC applicable to foreign-investment corporations and the Articles of Association of the Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries, the Group is required to maintain a statutory reserve (“PRC statutory reserve”): a general reserve fund, which is not available for dividend distribution. The Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries are required to allocate 10 % of their profit after taxation, as reported in their PRC statutory financial statements, to the general reserve fund until the balance reaches 50 % of their registered capital. At their discretion, the PRC subsidiaries, VIEs and VIEs’ subsidiaries may allocate a portion of its after-tax profits based on PRC accounting standards to staff welfare and bonus funds. The general reserve fund may be used to make up prior year losses incurred and, with approval from the relevant government authority, to increase capital. PRC regulations currently permit payment of dividends only out of the Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries’ accumulated profits as determined in accordance with PRC accounting standards and regulations. The general reserve fund amounted to RMB 57,961,029 and RMB 57,993,936 as of December 31, 2022 and 2023, respectively. The Group has not allocated any of its after-tax profits to the staff welfare and bonus funds for any period presented. In addition, the share capital of the Company’s PRC subsidiaries, VIEs and VIEs’ subsidiaries of RMB 244,217,537 and RMB 244,212,177 as of December 31, 2022 and 2023, respectively, was considered restricted due to restrictions on the distribution of share capital. As a result of these PRC laws and regulations, the Company’s PRC subsidiaries, VIEs and VIEs’ subsidiaries are restricted in their ability to transfer a portion of their net assets, including general reserve and registered capital, either in the form of dividends, loans or advances. Such restricted portion amounted to RMB 302,178,566 and RMB 302,239,020 as of December 31, 2022 and 2023, respectively. |
Repurchase of shares
Repurchase of shares | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Repurchase of shares | 14. Repurchase of shares The Company announced up to USD 10 million share repurchase program in February 2020. As of December 31, 2023, the Company had repurchased 1,922,180 ADSs as part of the program, at a total cost of USD 2,109,847 , approximately RMB 13.4 million, inclusive of transaction charges. The share repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means. The timing and extent of any purchases will depend on market conditions, the trading price of the Company’s ADSs and other factors, subject to all applicable rules and regulations. The Company’s board of directors will review the share repurchase program periodically, and may authorize adjustments of its terms and size accordingly. The Company plans to use its available cash balance to fund repurchases made under this program. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions Parties are considered to be 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 operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. During the years ended December 31, 2021, 2022 and 2023, significant related party transactions and balances were as follows: a. Revenue from Related Parties Years Ended December 31 2021 2022 2023 2023 RMB RMB RMB USD One-time commissions Funds managed by Jupai Group 13,477,880 1,949,708 2,452,830 345,474 Investees of shareholder of the Company — 178,028 — — Total one-time commissions 13,477,880 2,127,736 2,452,830 345,474 Funds managed by Jupai Group 102,896,582 32,433,896 19,719,200 2,777,391 Total recurring management fee 102,896,582 32,433,896 19,719,200 2,777,391 Funds managed by Jupai Group 10,025,528 391,248 — — Total recurring service fee 10,025,528 391,248 — — Enterprise management services — — 7,818,629 1,101,231 Total other service fee — — 7,818,629 1,101,231 Total revenue from related parties 126,399,990 34,952,880 29,990,659 4,224,096 b. Amounts due from Related Parties As of December 31, 2022 and 2023, amounts due from related parties were comprised of the following: As of December 31, 2022 2023 2023 RMB RMB USD Service fee receivable 18,756,144 2,570,000 361,977 Loan to related parties 200,000,000 420,000,000 59,155,763 Loan to noncontrolling interest shareholder — — — Total amounts due from related parties 218,756,144 422,570,000 59,517,740 The amounts represent net of allowance for doubtful accounts of RMB 69,880,157 and RMB 75,443,757 as of December 31, 2022 and 2023, respectively. The loan of RMB 200 million to related parties occurred in October 2019 and will expire in December 2025. The borrower is a limited partnership with a 100% controlled subsidiary of the company served as its general partner. After overall considering historical cooperation history, its financial status and economic condition, account allowance of RMB 28,208,290 and nil was accrued as of December 31, 2022 and 2023. In December 2023, a loan of RMB 210 million was provided to a related party under common control, after overall considering its financial status and economic condition, no account allowance was accrued as of December 31, 2023. c. Deferred Revenue from Related Parties As of December 31, 2022 and 2023, deferred revenue from related parties was comprised of the following: As of December 31, 2022 2023 2023 RMB RMB USD Funds managed by Jupai Group 2,091,273 1,903,302 268,074 Total deferred revenue 2,091,273 1,903,302 268,074 The amounts represent recurring management fees and recurring service fees received from the investment funds managed or served by the Group in advance. d. Amounts due to Related Parties As of December 31, 2022 and 2023, amounts due to related parties were as following: As of December 31, 2022 2023 2023 RMB RMB USD Funds managed by Jupai Group 5,992,010 — — Investees of shareholder of the Company — — — Total amounts due to related parties 5,992,010 0 0 The amounts as of December 31, 2022 and 2023 mainly represent capital investments collected on behalf of investees. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Operating Leases The Company leases its facilities under non-cancelable operating leases expiring at various dates. Future minimum lease payments under non-cancelable operating lease agreements as of December 31, 2023 were as follows: Years Ended December 31, RMB 2024 4,884,270 2025 4,034,608 2026 — Total 8,918,878 Rental expenses were RMB 30,636,589, RMB 14,876,505 and RMB 4,754,041 during the years ended December 31, 2021, 2022 and 2023, respectively. Contingencies The Company does not have any pending legal or administrative proceedings to which the Company is a party that will have a material effect on its business or financial condition. Investment commitments The capital injection the company would be obligated to provide was nil for the year ended December 31,2023. |
Additional Financial Informatio
Additional Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Additional Financial Information of Parent Company | Additional Financial Information of Parent Company — Financial Statements Schedule I Jupai Holdings Limited Financial Information of Parent Company Condensed Balance Sheets (In RMB except for share data) As of December 31, 2022 2023 2023 RMB RMB USD ASSETS Cash and cash equivalents 13,829,761 ( 227 ) ( 32 ) Other current assets 785,246 1,134,365 159,772 Total current assets 14,615,007 1,134,138 159,740 Investment in subsidiaries and VIE 658,901,691 637,819,558 89,835,006 Loan to subsidiaries 200,190,258 211,912,032 29,847,185 Total Assets 873,706,956 850,865,728 119,841,931 LIABILITIES Other current liabilities 10,969,245 10,269,915 1,446,487 Amounts due to related parties — non-current 13,035,698 13,256,746 1,867,174 Total Liabilities 24,004,943 23,526,661 3,313,661 Ordinary Shares (USD 0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 191,052,818 and 191,052,818 shares issued and outstanding, as of December 31, 2022 and 2023, respectively) 597,739 597,739 84,190 Additional paid-in capital 1,093,762,610 1,093,762,610 154,053,242 Accumulated deficit ( 296,885,493 ) ( 320,552,501 ) ( 45,148,875 ) Accumulated other comprehensive income 52,227,157 53,531,219 7,539,713 Total shareholders’ equity 849,702,013 827,339,067 116,528,270 TOTAL LIABILITIES AND SHAREHOLERS’ EQUITY 873,706,956 850,865,728 119,841,931 Additional Information —Financial Statement Schedule I Jupai Holdings Limited Financial Information of Parent Company Condensed Statements of Operations and Comprehensive Income (In RMB) Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Revenues — — — — Cost of revenues ( 261,642 ) — — — Selling expenses ( 166,959 ) — — — General and administrative expenses ( 8,232,681 ) ( 4,466,272 ) ( 4,478,627 ) ( 630,801 ) Other income (loss) 1,286,845 — — — Loss before taxes and loss from equity in subsidiaries and VIEs ( 7,374,437 ) ( 9,552,549 ) ( 4,478,627 ) ( 630,801 ) Income (loss) from equity in subsidiaries and VIEs ( 260,487,285 ) 24,377,678 ( 19,188,381 ) ( 2,702,627 ) Net income (loss) ( 267,861,722 ) 19,911,406 ( 23,667,008 ) ( 3,333,428 ) Other comprehensive income (loss) ( 4,761,513 ) 19,059,483 1,304,062 183,673 Comprehensive income (loss) attributable to ordinary shareholders ( 272,623,235 ) 38,970,889 ( 22,362,946 ) ( 3,149,755 ) Additional Information —Financial Statement Schedule I Jupai Holdings Limited Financial Information of Parent Company Condensed Statements of Cash Flows (In RMB) Years ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Cash flows from operating activities: Net income (loss) ( 267,861,722 ) 19,911,406 ( 23,667,008 ) ( 3,333,428 ) Adjustment to reconcile net income to net cash provided by operating activities: Share-based compensation 644,654 — — — Income from equity in subsidiaries and VIEs 260,487,285 ( 24,377,678 ) 19,188,381 2,702,627 Changes in operating assets and liabilities: Other current assets 353,726 444,811 ( 349,119 ) ( 49,172 ) Other current liabilities 9,212,858 ( 294,130 ) ( 699,330 ) ( 98,499 ) Net cash provided by (used in) operating activities 2,836,801 ( 4,315,591 ) ( 5,527,076 ) ( 778,472 ) Cash flows from investing activities: Collection of loan to subsidiaries 79,696 — Loan to subsidiaries ( 8,327,112 ) ( 1,172,849 ) Proceeds from disposal of Non Linear — 3,485,129 — — Net cash provided by (used in) investing activities 79,696 3,485,129 ( 8,327,112 ) ( 1,172,849 ) Cash flows from financing activities: Repurchase of shares ( 4,462,990 ) ( 3,174,100 ) — — Net cash provided by (used in) financing activities ( 4,462,990 ) ( 3,174,100 ) — — Effect of exchange rate changes ( 371,727 ) 170,292 24,200 3,408 Net decrease in cash and cash equivalents ( 1,918,220 ) ( 3,834,270 ) ( 13,829,988 ) ( 1,947,913 ) Cash and cash equivalents — beginning of year 19,582,251 17,664,031 13,829,761 1,947,881 Cash and cash equivalents — end of year 17,664,031 13,829,761 ( 227 ) ( 32 ) Additional Information —Financial Statement Schedule I Jupai Holdings Limited Notes to Schedule I 1. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries, VIEs and VIEs’ subsidiaries. For the parent company, the Company records its investments in subsidiaries, VIEs and VIEs’ subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries and VIEs” and the subsidiaries and VIEs’ profit as “Income from equity in subsidiaries and VIEs” on the Condensed Statements of Operations and Comprehensive Income. 2. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The footnote disclosure certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying Consolidated Financial Statements. 3. As of December 31, 2023, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company. 4. Translations of amounts from RMB into USD are solely for the convenience of the readers and were calculated at the rate of USD1.00 for RMB 7.0999 on December 31, 2023, representing the certificated exchange rate published by the Federal Reserve B oard. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | (b) Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. All transactions and balances among the Company, its subsidiaries, the VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to: govern the financial and operating policies; appoint or remove the majority of the members of the board of directors; cast a majority of votes at the meeting of the board of directors. U.S. GAAP provides guidance on the identification of VIE and financial reporting for entities over which control is achieved through means other than voting interests. The Company evaluates each of its investments to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. Although PRC laws and regulations do not prohibit foreign-invested enterprises from obtaining such license, in practice, the supervisory authority, at its discretion, generally does not issue such license to a foreign-invested third-party mutual fund sales company. Therefore, the Company decided to conduct such business in China through Shanghai Jupai and its subsidiaries which are PRC domestic companies. Since the Company does not have any equity interests in Shanghai Jupai, in order to exercise effective control over its operations, the Company, through its wholly owned subsidiary Shanghai Juxiang, entered into a series of contractual arrangements, or Control Documents with Shanghai Jupai and its shareholders (“Jupai VIE”), pursuant to which the Company is entitled to receive effectively all economic benefits generated from Shanghai Jupai shareholders’ equity interests in it. Since the Company acquired Scepter in July 2015, Scepter, its subsidiaries, Shanghai E-Cheng and Shanghai E-Cheng’s subsidiaries were included in the consolidated financial statements. Scepter is engaged in asset management service business. Foreign-invested enterprises incorporated in the PRC are not expressively prohibited from providing asset management services in PRC. However, according to local business practice, as a general partner of a fund, Scepter must invest as a limited partner before the fund is established. Some investments of the fund managed by the Scepter are in the foreign-invested enterprise prohibited, or not encouraged industries, which requires all investors not to be foreign-invested enterprises. Therefore Scepter provides asset management services through its VIE entities. To provide Scepter effective control over and the ability to receive substantially all of the economic benefits of its VIE and its subsidiaries, Scepter’s wholly owned subsidiary Shanghai Baoyi, entered into a series of contractual arrangements with Shanghai E-Cheng, the “VIE” and its respective shareholders, respectively. (Hereafter, the VIE structure under Scepter is called “Scepter VIE”.). On August 24, 2021, Shanghai Yedu acquired the whole equity interest of Shanghai Yidexin Equity Investment Management Co., Ltd. from Shanghai E-Cheng, and to exercise effective control over Yidexin Equity Investment Management Co., Ltd. (“Yedu VIE”), Shanghai Baoyi entered into a series of contractual arrangements with Shanghai Yedu and the shareholders of Shanghai Yedu. The agreements of Jupai VIE, Scepter VIE and Yedu VIE that provide the Company effective control over the VIE include: (i) Voting Rights Proxy Agreement (1) Jupai VIE: Each shareholder of Shanghai Jupai has executed a power of attorney to grant Shanghai Juxiang the power of attorney to act on his or her behalf on all matters pertaining to Shanghai Jupai and to exercise all of his or her rights as a shareholder of the Shanghai Jupai, including but not limited to convene, attend and vote at shareholders’ meetings, designate and appoint directors and senior management members. The proxy agreement will remain in effect unless Shanghai Juxiang terminates the agreement by giving a 30 -day prior written notice or gives its consent to the termination by Shanghai Jupai. (2) Scepter VIE: Each of the shareholders of Shanghai E-Cheng irrevocably granted any person designated by Shanghai Baoyi the power to exercise all voting rights to which he will be entitled to as shareholder of Shanghai E-Cheng at that time, including the right to declare dividends, appoint and elect board members and senior management members and other voting rights. Each shareholder voting right proxy agreement has a term of twenty years , unless it is early terminated by all parties in writing or pursuant to provision of this agreement. The term of the agreement will be automatically extended for one year upon the expiration, if Shanghai Baoyi gives the other Parties written notice requiring the extension thereof and the same mechanism will apply subsequently upon the expiration of each extended term. (3) Yedu VIE: Each shareholder of Shanghai Yedu irrevocably appointed a nominee authorized by Shanghai Baoyi as its attorney-in-fact to exercise on such shareholder’s behalf any and all rights that such shareholder has in respect of their respective equity interests in Shanghai Yedu, including but not limited to the power to vote on its behalf on all matters of Shanghai Yedu requiring shareholder approval in accordance with the articles of association of Shanghai Yedu. The initial term of the proxy agreement is 20 years and it may be automatically extended with a 30-day prior written notice given by Shanghai Baoyi on a yearly basis. (ii) Call Option Agreement (1) Jupai VIE: The shareholders of Shanghai Jupai granted Shanghai Juxiang or its designated representative(s) an irrevocable and exclusive option to purchase their equity interests or assets in Shanghai Jupai when and to the extent permitted by PRC law. Shanghai Juxiang or its designated representative(s) has sole discretion as to when to exercise such options, either in part or in full. Without Shanghai Juxiang’s written consent, the shareholders of Shanghai Jupai shall not transfer, donate, pledge, or otherwise dispose any equity interests of Shanghai Jupai in any way. The acquisition price for the shares or assets will be the minimum amount of consideration permitted under the PRC law at the time when the option is exercised. The agreement can be early terminated by Shanghai Juxiang, but not by Shanghai Jupai or its shareholders. (2) Scepter VIE: Each of shareholders of Shanghai E-Cheng has entered into an Exclusive Call Option Agreement with Baoyi. Pursuant to these agreements, each of the shareholders of Shanghai E-Cheng has granted an irrevocable and unconditional option to Shanghai Baoyi or its designees to acquire all or part of such shareholder’s equity interests in Shanghai E-Cheng at its sole discretion, to the extent as permitted by PRC laws and regulations then in effect. The consideration for such acquisition of all equity interests in Shanghai E-Cheng will be equal to the registered capital of Shanghai E-Cheng, and if PRC law requires the consideration to be greater than the registered capital, the consideration will be the minimum amount as permitted by PRC law. In addition, Shanghai E-Cheng irrevocably and unconditionally granted Baoyi an exclusive option to purchase, to the extent permitted under the PRC law, all or part of the assets of Shanghai E-Cheng. The exercise price for purchasing the assets of Shanghai E-Cheng will be equal to its respective book values, and if PRC law requires the price to be greater than the book value, the price will be the minimum amount as permitted by PRC law. The call option may be exercised by Shanghai Baoyi or its designees. (3) Yedu VIE: Each of the shareholders of Shanghai Yedu irrevocably and unconditionally granted to Shanghai Baoyi or its designee an option to purchase at any time, to the extent permitted under PRC law, all or a portion of their respective equity interests in Shanghai Yedu. Also, Shanghai Baoyi or its designee has the right to acquire any and all of the assets of Shanghai Yedu. The acquisition price for the shares or assets will be the corresponding capital contribution in Shanghai Yedu’s registered capital or the corresponding assets’ net booking value, or, if the minimum amount of consideration permitted under the PRC law is higher than the capital contribution or the net booking value, will be such minimum amount at the time of the exercise of the option. Without Shanghai Baoyi’s prior written consent, Shanghai Yedu’s shareholders cannot transfer their equity interests in Shanghai Yedu, and Shanghai Yedu cannot transfer its assets. The agreement will not be terminated until after all of the equity interest and assets of Shanghai Yedu have been transferred to Shanghai Baoyi or its designee. The agreements that transfer economic benefits to the Company include: (i) Consulting Services Agreement, Operating Agreement, Exclusive Support Agreement and Exclusive Business Operation Agreement (1) Jupai VIE: Shanghai Jupai engages Shanghai Juxiang as its exclusive technical and operational consultant and under which Shanghai Juxiang agrees to assist in arranging the financial support necessary to conduct Shanghai Jupai’s operational activities. Shanghai Jupai shall not seek or accept similar services from other providers without the prior written approval of Shanghai Juxiang. The agreements will be effective as long as Shanghai Jupai exists. Shanghai Juxiang may terminate this agreement at any time by giving a prior written notice to Shanghai Jupai. (2) Scepter VIE: Pursuant to an Exclusive Support Agreement between Shanghai Baoyi and Shanghai E-Cheng, Shanghai Baoyi provides Shanghai E-Cheng with a series of consultancy services on an exclusive basis and is entitled to receive related fees. The term of this Exclusive Support Agreement will expire upon dissolution of Shanghai E-Cheng. Unless expressly provided by this agreement, without prior written consent of Shanghai Baoyi, Shanghai E-Cheng may not engage any third party to provide the services offered by Shanghai Baoyi under this agreement. (3) Yedu VIE: Shanghai Baoyi provides Shanghai Yedu with a series of technology and business support and relevant consulting services on an exclusive basis. Shanghai Baoyi is entitled to receive service fees which shall be approximately equal to Shanghai Yedu’s net revenue. The term of the exclusive business operation agreement is 20 years and it may be extended with Shanghai Baoyi’s written confirmation. Shanghai Baoyi is entitled to terminate the agreement early at any time by sending a written notice 30 days in advance, for any reason whereas Shanghai Yedu cannot early terminate the agreement. (ii) Equity Interest Pledge Agreement (1) Jupai VIE: The shareholders of Shanghai Jupai pledged all of their equity interests in Shanghai Jupai to Shanghai Juxiang as collateral to secure their obligations under the above agreement. If the shareholders of Shanghai Jupai or Shanghai Jupai breach their respective contractual obligations, Shanghai Juxiang, as pledgee, will be entitled to certain rights, including the right to dispose the pledged equity interests. Pursuant to the agreement, the shareholders of Shanghai Jupai shall not transfer, assign or otherwise create any new encumbrance on their respective equity interest in Shanghai Jupai without prior written consent of Shanghai Juxiang. This pledge will remain effective until all the guaranteed obligations are performed. Mr. Ni’s equity interest in Shanghai Jupai in favor of Shanghai Juxiang is still under the process of registration with the local branch of regulatory authorities in Shanghai and has not been completed yet. (2) Scepter VIE: Each of the shareholders of Shanghai E-Cheng has also entered into an equity pledge agreement with Shanghai Baoyi. Pursuant to which these shareholders pledged their respective equity interest in Shanghai E-Cheng to guarantee the performance of the obligations of Shanghai E-Cheng. If Shanghai E-Cheng or its shareholders breach any of their respective obligations under any of these agreements, Shanghai Baoyi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Pursuant to the equity pledge agreement, each shareholder of Shanghai E-Cheng cannot transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in Shanghai E-Cheng without prior written consent of Shanghai Baoyi. The equity pledge right enjoyed by Shanghai Baoyi will expire when shareholders of Shanghai E-Cheng have fully performed their respective obligations under the above agreements. The shareholders of Shanghai E-Cheng are in the process of applying with the local branch of SAIC in Shanghai for registration of their equity interest pledge. (3) Yedu VIE: The shareholders of Shanghai Yedu pledged all of their equity interests in Shanghai Yedu to Shanghai Baoyi to guarantee the performance of the obligations of Shanghai Yedu. If Shanghai Yedu or its shareholders breach any of their respective obligations under any of these agreements, Shanghai Baoyi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Upon the due registration, this pledge will remain effective until all the contractual obligations are performed and the guaranteed loan has been paid off. (iii) Loan Agreement for Scepter VIE. Under the Loan Agreement among the shareholders of Shanghai E-Cheng and Shanghai Baoyi, Shanghai Baoyi granted an interest-free loan to the shareholders of Shanghai E-Cheng, solely for their purchase of the equity interests of Shanghai E-Cheng. The loan is interest free and the term of the loan is (i) the expiration of 20 years from the date of the loan agreement, (ii) the expiration of Shanghai Baoyi’s operation term or (iii) the expiration of Shanghai E-Cheng’s operation term whichever is the earliest. Under the above agreements, the shareholders of Shanghai Jupai/Shanghai E-Cheng/Shanghai Yedu irrevocably granted Shanghai Juxiang/Shanghai Baoyi the power to exercise all voting rights to which they were entitled. In addition, Shanghai Juxiang/Shanghai Baoyi have the option to acquire all of the equity interests in Shanghai Jupai/Shanghai E-Cheng/Shanghai Yedu, to the extent permitted by the then-effective PRC laws and regulations, for nominal consideration. Finally, Shanghai Juxiang/Shanghai Baoyi is entitled to receive service fees for certain services to be provided to Shanghai Jupai/Shanghai E-Cheng/Shanghai Yedu. The Call Option Agreement and Voting Rights Proxy Agreement provide the Company effective control over the VIEs and their subsidiaries, while the Equity Interest Pledge Agreements secure the obligations of the shareholders of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu under the relevant agreements. Because the Company, through Shanghai Juxiang and Shanghai Baoyi, has (i) the power to direct the activities of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu that most significantly affect the entities’ economic performance and (ii) the right to receive substantially all of the benefits from Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu, the Company is deemed the primary beneficiary of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu. Accordingly, the Company has consolidated the Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu’s financial results of operations, assets and liabilities, and cash flows in the Company’s consolidated financial statements. The Company believes that the contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, the contractual arrangements are subject to risks and uncertainties, including: Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu and their shareholders may have or develop interests that conflict with the Group’s interests, which may lead them to pursue opportunities in violation of the aforementioned contractual arrangements. Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu and their shareholders could fail to obtain the proper operating licenses or fail to comply with other regulatory requirements. As a result, the PRC government could impose fines, new requirements or other penalties on the VIEs or the Group, mandate a change in ownership structure or operations for the VIEs or the Group, restrict the VIEs or the Group’s use of financing sources or otherwise restrict the VIEs or the Group’s ability to conduct business. The aforementioned contractual agreements may be unenforceable or difficult to enforce. The equity interests under the Equity Interest Pledge Agreements have been registered by the shareholders of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu with the relevant office of the administration of industry and commerce, however, the VIEs or the Group may fail to meet other requirements. Even if the contractual agreements are enforceable, they may be difficult to enforce given the uncertainties in the PRC legal system. The PRC government may declare the aforementioned contractual arrangements invalid. They may modify the relevant regulations, have a different interpretation of such regulations, or otherwise determine that the Group or the VIEs have failed to comply with the legal obligations required to effectuate such contractual arrangements. As of December 31, 2023, the Group had variable interests in various investment funds and contractual funds that are VIEs but determined that it was not the primary beneficiary and, therefore, was not consolidating the VIEs. The maximum potential financial statement loss the Group could incur if the investment funds and contractual funds were to default on all of their obligations is the loss of value of the interests in such investments that the Group holds, including equity investments recorded in investment in affiliates and long-term investment in the consolidated balance sheet. The Company’s maximum exposure to loss associated with identified nonconsolidated VIEs in which it holds variable interests was nil and nil as of December 31, 2022 and 2023, respectively. The following amounts and balances of Shanghai Jupai and Shanghai E-Cheng and Shanghai Yedu and their subsidiaries were included in the Company’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2022 2023 2023 RMB RMB USD Cash and cash equivalents 875,322 972,324 136,949 Accounts receivable, net — 2,280,000 321,131 Other receivables, net 239,884 — — Amounts due from related parties, net of allowance for doubtful 68,183,377 — — Other current assets 693,670 574,771 80,955 Total assets 69,992,253 3,827,095 539,035 Accrued payroll and welfare expenses 4,331,827 2,000,000 281,694 Income tax payable 651,587 ( 21,213,724 ) ( 2,987,891 ) Amounts due to related parties-current 115,748,800 50,122,823 7,059,652 Deferred revenue — current from related parties 1,954,481 1,903,302 268,074 Other current liabilities ( 271,617 ) 2,178 307 Total liabilities 122,415,078 32,814,579 4,621,837 Years ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Net revenues 211,170,667 37,880,143 5,784,763 814,767 Third party 121,437,225 23,344,191 — — Related party 89,733,442 14,535,952 5,784,763 814,767 Operating cost and expenses ( 245,086,293 ) ( 45,452,147 ) ( 3,914,178 ) ( 551,300 ) Net loss ( 318,719,762 ) ( 61,667,033 ) 2,527,592 356,004 Net income (loss) attributable to ordinary shareholders ( 292,177,990 ) ( 57,615,283 ) 2,527,592 356,004 Cash flows provided by (used in) operating activities: ( 94,348,770 ) ( 34,058,526 ) 97,003 13,663 Cash flows provided by (used in) investing activities: 4,117,700 ( 91,320,453 ) — — The VIEs contributed an aggregate of 59 %, 37 % and 1 7 % of the consolidated net revenues for the years ended December 31, 2021, 2022 and 2023, respectively and an aggregate of 109 %, ( 289 )% and ( 11 )% of the consolidated net income (loss) attributable to ordinary shareholders for the years ended December 31, 2021, 2022 and 2023, respectively. As of December 31, 2022 and 2023, the VIEs accounted for an aggregate of 7 % and 0.4 %, respectively, of the consolidated total assets. There are no consolidated assets of the VIEs and their subsidiaries that are collateral for the obligations of the VIEs and their subsidiaries and can only be used to settle the obligations of the VIEs and their subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholder of the VIEs or entrustment loans to the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserve and their share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 13 for disclosure of restricted net assets. |
Use of Estimates | (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include assumptions used to determine the allowance for doubtful accounts, valuation allowance for deferred tax assets, fair value measurement of underlying investment portfolios of the funds that the Group invests, assumptions related to the consolidation of entities in which the Group holds variable interests, estimates involved in revenue recognition, assumptions used to measure impairment of long-lived assets, assumptions used to measure impairment of equity investments and assumption used to determine the useful life of intangible assets acquired. |
Concentration of Credit Risk | (d) Concentration of Credit Risk The Company is subject to potential significant concentrations of credit risk consisting principally of cash and cash equivalents, restricted cash, accounts receivable, other receivables, amounts due from related party and investments. All of the Group’s cash and cash equivalents, restricted cash and a majority of investments are held with financial institutions that Group management believes to be of high credit quality. Substantively all revenues were generated within China. There were no product providers or underlying corporate borrowers which accounted for 10% or more of total revenues for the years ended December 31, 2021, 2022, and 2023. |
Investments in Affiliates | (e) Investments in Affiliates Affiliated companies are entities over which the Group does not control. The Group accounts for common-stock-equivalent equity investments in entities over which it has significant influence but does not own a majority voting interest or otherwise control using the equity method. The Group generally considers an ownership interest of 20 % or higher to represent significant influence. Under the equity method, the Group’s share of the post-acquisition profits or losses of affiliated companies is recognized in the statements of operations and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. When the Group’s share of losses in an affiliated company equals or exceeds its carrying amount of the investment in the affiliated company, the Group does not recognize further losses, unless the Group has guaranteed the obligations of the affiliated company or is otherwise committed to provide further financial support for the affiliated company. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary, which is recorded in loss from equity in affiliates. The Group recorded impairment loss of RMB 2.6 million, RMB 28.7 million, and RMB 29.9 million for the years ended December 31, 2021, 2022, and 2023. The Group also considers it has significant influence over the funds that it serves as general partner or fund manager, and the Group’s ownership interest in these funds as limited partner is generally much lower than 5 %. These funds are not consolidated by the Group based on the facts that the Group does not have control over the funds given substantive kick-out rights held by unrelated limited partners that allow them to remove the general partner without cause, and/or substantive participating rights that allow them to participate in certain financial and operating decisions of the limited partnership in the ordinary course of business. The equity method of accounting is accordingly used for investments by the Group in these funds. If an investee fund meets the definition of an Investment Company, it’s required to be reported at fair value. The Group records its equity pick-up based on its percentage ownership of the investee funds’ net income. For real estate projects, the group recorded its pick-up one quarter in arrears to enable it to have more time to collect and analyze the investments’ operating results. For other investee funds, the group recorded its pick-up based on current period net income. |
Fair Value of Financial Instruments | (f) Fair Value of Financial Instruments The Group records its certain financial assets at fair value on a recurring basis. Fair value reflects 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 Group applies a fair value hierarchy that 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 hierarchy is as follows: 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 asset 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 asset or liabilities for which there are inputs generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair value are therefore determined using model based techniques that include option pricing models, discounted cash flow models, and similar techniques. Certain assets of the Group were measured at fair value on a non-recurring basis subsequent to initial recognition. These assets include investment in equity securities without readily determinable fair value and investment in affiliates in 2023. See Note 5 and Note 6, respectively. |
Cash and Cash Equivalents | (g) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. |
Restricted Cash | (h) Restricted Cash The Group’s restricted cash represents cash restricted by court related to a lawsuit in which the group is a defendant. The restriction will be subsequently removed when the case is closed. |
Accounts receivable, net | (i) Accounts receivable, net Accounts receivable mainly represent amounts due from product providers or underlying corporate borrowers and are recorded net of allowance for doubtful accounts. The Group considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the product providers or underlying corporate borrowers’ payment history, creditworthiness, financial conditions of the product providers or underlying corporate borrowers and industry trend. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. The Group also makes specific allowance if there is strong evidence indicating that the accounts receivable is likely to be unrecoverable. Accounts receivable balances are written off after all collection efforts have been exhausted. The Group accrued allowance for doubtful accounts of nil , nil , and nil for the years ended December 31, 2021, 2022, and 2023. |
Other receivables, net | (j) Other receivables, net Other receivables mainly represent loan receivables and deposits for lessor and other suppliers. The Company records other receivables at net realizable value consisting of the carrying amount less an allowance for uncollectable accounts as needed. The allowance for uncollectable accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing other receivables. The Company determines the allowance based on age of the amounts due, the financial condition of the borrowers, and economic conditions. The Company recorded allowance for doubtful accounts of RMB 9.4 million, RMB 0.003 million and RMB 0.3 million for the years ended December 31, 2021, 2022, and 2023. The Company has not accrued any interest income on loan receivable as the amount is indeterminable, it will be recognized when cash received. |
Investments | (k) Investments Debt Securities The Group invests in debt securities and accounts for the investments based on the nature of the products invested, and the Group’s intent and ability to hold the investments to maturity. The Group’s investments in debt securities include trust products, asset management plans and real estate funds that have a stated maturity and normally pay a prospective fixed rate of return. The Group classifies the investments in debt securities as held-to-maturity when it has both the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. Long-term investments are reclassified as short-term when their remaining contractual maturity date is less than one year. The Group reviews, at individual security level, its held-to-maturity investments for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the amortized cost basis of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Group’s intent and ability to hold the investment to determine whether an other-than-temporary impairment has occurred. The Group recognizes other-than-temporary impairment in earnings if it has the intent to sell the debt security or if it is more-likely-than-not that it will be required to sell the debt security before recovery of its amortized cost basis. Additionally, the Group evaluates expected cash flows to be received and determines if credit-related losses on debt securities exist, which are considered to be other-than-temporary, should be recognized in earnings. Equity Securities The Group’s investment in equity securities comprise of investment in privately-held companies and limited partnership in private equity fund. Prior to fiscal 2018, these investments in equity securities without readily determinable fair values were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. Effective January 1, 2018, upon adoption of ASU 2016-01, the Group has elected to measure these investments at cost minus impairment, if any, adjusted up or down for observable price changes (i.e., prices in orderly transactions for the identical or similar investment of the same issuer). Any adjustment to the carrying amount is recorded in net income. The Group also makes qualitative assessment at each reporting period and if the assessment indicates that the fair value of the investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss recorded in investment loss. |
Noncontrolling interests | (l) Noncontrolling interests A noncontrolling interest in a subsidiary of the Group represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Group. Noncontrolling interests are presented as a separate component of equity in the consolidated balance sheet and earnings and other comprehensive income are attributed to controlling and noncontrolling interests. |
Property, plant, and Equipment, net | (m) Property, plant, and Equipment, net Property, plant, and equipment is stated at cost less accumulated depreciation, and is depreciated using the straight-line method over the following estimated useful lives: Estimated Useful Lives in Years Leasehold improvements Shorter of the lease term or expected useful life Furniture, fixtures, and equipment 3 - 5 years Motor vehicles 5 years Gains and losses from the disposal of property, plant, and equipment are included in income or loss from operations. |
Leases | (n) Leases The Group determines if an arrangement is a lease at inception of the arrangement. The Group primarily enters into operating leases, as the lessee, for office space. Operating leases are included in Right-of-use (“ROU”) Assets, Other current liabilities (current portion of liabilities) and Operating lease liabilities (non-current liabilities) on the Consolidated balance sheet. ROU Assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Group determines the present value of the lease payments using an incremental borrowing rate based on information available at the inception date. Leases may include options to extend or terminate the lease which are included in the ROU Assets and liabilities when they are reasonably certain of exercise. Certain leases include lease and nonlease components, which are accounted for as one single lease component. Occupancy lease agreements, in addition to contractual rent payments, generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the extent these are fixed or determinable, they are included as part of the minimum lease payments used to measure the lease liabilities. Operating lease expense associated with minimum lease payments is recognized on a straight-line basis over the lease term. When additional payments are based on usage or vary based on other factors, they are expensed when incurred as variable lease expense. Minimum lease payments for leases with an initial term of twelve months or less are not recorded on the Consolidated balance sheet. The Group recognizes lease expense for these leases on a straight-line basis over the lease term. The Group recorded ROU assets of RMB 152.3 million and lease liabilities RMB 144.3 million, with no cumulative effect adjustment to retained earnings of January 1, 2019. There was no material impact on the Consolidated Statements of Operations on the Consolidated Statements of Cash Flows. Additional disclosures relating to leases are discussed in Note 9 “Leases”. |
Treasury stocks | (o) Treasury stocks The Company repurchased its own stocks directly from the open market at prevailing market prices, therefore an access of stated value over the cost of treasury stocks is credited to additional paid-in capital. The Company has no plan to resell the repurchased shares. |
Revenue Recognition | (p) Revenue Recognition The Group derives revenue primarily from one-time commissions and recurring service fees paid by product providers for whom the Group distributes wealth management products, and recurring management fee and carried interest paid by funds the Group manages. There is no material impact of the adoption of ASC 606 on January 1, 2018 using the modified retrospective method to its consolidated financial statements. Under the guidance of ASC 606, the Group is required to: (i) identify the contracts with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contracts and (v) recognize revenue when the entity satisfies a performance obligation. Revenues are recorded, net of sales related taxes and surcharges. Disaggregation of revenue The Group uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the CEO and Chairman of the Board, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group believes it operates in a sole segment, which is value-added wealth management and asset management services. Substantively all of the Group’s revenues are derived from China. The Group’s long-lived assets are located substantially in the PRC. The following table shows revenue from contracts with customers disaggregated by service lines for the years ended December 31, 2021, 2022 and 2023: Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD One-time commissions 142,299,783 27,878,590 2,786,454 392,464 Related party 13,477,880 2,127,736 2,452,830 345,474 Third party 128,821,903 25,750,854 333,624 46,990 Recurring management fee 102,896,582 32,433,896 19,719,200 2,777,391 Related party 102,896,582 32,433,896 19,719,200 2,777,391 Recurring service fees 115,376,632 42,887,064 3,470,913 488,868 Related party 10,025,528 391,248 — — Third party 105,351,104 42,495,816 3,470,913 488,868 Other service fee — — 7,818,629 1,101,231 Related party — — 7,818,629 1,101,231 Third party — — — — Total revenues 360,572,997 103,199,550 33,795,196 4,759,954 One-time Commissions The Group enters into one-time commission agreements with product providers or underlying corporate borrowers, which specifies the key terms and conditions of the arrangement. Such agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. Upon establishment of a wealth management product, the Group earns a one-time commission from product providers or underlying corporate borrowers, calculated as a percentage of the wealth management products purchased by its clients. The Group defines the “establishment of a wealth management product” for its revenue recognition purpose as the time when both of the following two criteria are met: (1) the Group’s client has entered into a purchase or subscription contract with the relevant product provider and, if required, the client has transferred a deposit to an escrow account designated by the product provider and (2) the product provider has issued a formal notice to confirm the establishment of a wealth management product. After the contract is established, there are no significant judgments made when determining the one-time commission price. Recurring Service Fees Recurring service fee arises from on-going services provided to product providers after the distribution of wealth management product including investment relationship maintenance and coordination and product reports distribution. It is calculated as a percentage of the total value of investments in the wealth management products purchased by the Group’s clients, calculated at the establishment date of the wealth management product. As the Group provides these services throughout the contract term, revenue is recognized over the contract term, assuming all other revenue recognition criteria have been met. For certain products, recurring service fees may also include a performance-based fee based on the extent by which the fund’s investment performance exceeds a certain threshold. Such performance-based fees earned based on the performance of the Group are a form of variable consideration in its contracts with customers to provide investment management services. Revenue is recognized when performance-based measures are met. Recurring service agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. Recurring Management Fees Recurring management fee arises from the fund management services provided to funds the Group manages, including management fee and carried interest. Management fees are computed as a percentage of the capital contribution in a fund and are recognized as earned over the specified contract period. Carried interest represents preferential allocations of profits that are a component of the Group’s general partnership interests and fund managing interests in the limited partnership and contractual funds and is a form of variable consideration and recognized as revenue typically at the end of fund’s contract term when the uncertainty associated with the variability is resolved. Management fee received in advance of the specified contract period and in the limited circumstances carried interest received before the end of the fund’s contract term are recorded as deferred revenue. Transaction Price Allocation among Performance Obligations The Group enters into contracts with product providers or underlying corporate borrowers to provide both wealth management marketing and recurring services or other services. The Group also provides wealth management marketing, recurring services and other services to funds that it serves as general partner/co-general partner or fund manager. Each of the wealth management marketing service, recurring service, and other service represent a separate performance obligation. The Group allocate the total consideration among various performance obligations at inception of contracts based on their relative stand-alone selling price (“SSP”). The Group has observable SSP for its wealth management marketing services and other services for certain products as it provides such services separately to other similar customers. The Group has not sold its recurring services separately. The Group adopts either the adjusted market assessment approach or the residual approach when the SSP is not directly observable and is either highly variable or uncertain. Revenue for the respective performance obligation is recognized in the same manner as described above. Contract Balances The Group enters into contracts with customers, of which obligations are performed over a period. The Group records contract liabilities in deferred revenue when payments are received in advance of the performance obligations being satisfied. Certain contracts require that a portion of the payment be deferred until the end of the wealth management product’s life or other specified contingencies. As of December 31, 2022 and 2023, total amount of deferred revenue are RMB 4,892,374 and RMB 3,082,547 respectively, of which RMB 3,713,129 and RMB 1,903,302 estimated to be recognized within one year , RMB 1,179,245 and RMB 1,179,245 over one year to two years . The decrease in deferred revenue is primarily due to the satisfaction of revenue recognition criteria by the beginning balance of deferred revenue, partially offset by the reduction in deferred revenue received during the current period. RMB 3.7 million revenue was recognized in 2023 that was included in the beginning of the period contract liability balance. Practical Expedience The Group has used the following practical expedients as allowed under ASC 606: The Group expenses sales commissions as incurred when the amortization period is one year or less. Sales commission expenses are recorded within “Cost of Revenues” in the consolidated statements of operations. The Group has also applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Group recognizes revenue in proportion to the amount the Group has the right to invoice for services performed. |
Sales Related Tax and Related Surcharges | (q) Sales Related Tax and Related Surcharges The Group is subject to value-added tax (“VAT”), education surtax, and urban maintenance and construction tax, on the services provided in the PRC. The applicable VAT rate for the Group is 1 % to 6 %. |
Cost of Revenues | (r) Cost of Revenues Cost of revenue includes salaries and performance-based commissions of relationship managers and business development team, and expenses incurred in connection with product-specific client meetings and other events. |
Selling Expenses | (s) Selling Expenses Selling expenses primarily consist of payroll, bonus and benefits of sales and marketing staff, advertising costs, and agency fees. Advertising costs are expensed as incurred. Advertising costs in connection with the provision of marketing and promotion services consisted of fees the Group paid to third party venders for brand promotion on various online and offline channels. Such costs were included as selling expenses in the consolidated statements of operations and totaled RMB 1,889,482 , RMB 497,874 and nil fo r the years ended December 31, 2021, 2022 and 2023, respectively. |
Intangible assets, net | (t) Intangible assets, net Acquired intangible assets mainly consist of customer contracts, internal-used software and licenses from business combinations and are recorded at fair value on the acquisition date. Customer contracts, internal-used software and certain licenses are amortized using a straight-line method. Most of the licenses are determined to be indefinitely-lived, and not subject to amortization. Estimated Useful Lives in Years Customer contracts 3.5 years Internal-used software 10 years Licenses amortized Shorter of the legal rights or expected useful life |
Impairment of long-lived assets | (u) Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. The Group evaluates intangible assets that are not subject to amortization for impairment annually and more frequently if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Group conducts quantitative impairment tests for indefinite-lived intangible assets and compares the fair value of the asset with its carrying amount. The Group recognizes impairment loss on the amount by which the carrying value exceeds the fair value of the asset. After an impairment loss is recognized, the Group uses adjusted carrying amount of the intangible asset as its new accounting basis. |
Income Taxes | (v) Income Taxes Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations. The Group accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Group recognizes net deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, it considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Group determines that its deferred tax assets are realizable in the future in excess of their net recorded amount, the Group would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. According to ASU 2015-17, the Group recognized deferred tax assets and liabilities as non-current assets and liabilities. |
Share-Based Compensation | (w) Share-Based Compensation The Group recognizes share-based compensation based on the grant date fair value of equity awards, with compensation expense recognized over the vesting period. Share-based compensation expense is classified in the consolidated statements of operations based upon the job function of the grantee. The Group accounts for a cancellation or settlement of an equity settled share-based payment award as an acceleration of vesting, and recognize immediately the amount that otherwise would have been recognized for services received over the remainder of the vesting period. The Group also estimates expected forfeitures and recognizes compensation cost only for those share-based awards expected to vest. Actual forfeitures may differ from those estimated by the Group which would affect the amount of share-based compensation to be recognized. |
Government Grants | (x) Government Grants Government subsidies include cash subsidies received by the Group’s entities in the PRC from local governments as incentives for registering and operating business in certain local districts and are typically granted based on the amount of value-added tax, and income tax payment generated by the Group in certain local districts. Such subsidies allow the Group full discretion in utilizing the funds and are used by the Group for general corporate purpose. The local governments have final discretion as to the amount of cash subsidies. Cash subsidies are included in government subsidies and recognized when received and when all the conditions for their receipt have been satisfied. |
Loss on Litigation | (y) Loss on Litigation On an ongoing basis, the Group assesses the potential liabilities related to any lawsuits or claims brought against it. While it is typically very difficult to determine the timing and ultimate outcome of these actions, the Group uses best estimate to determine if it is probable that the Group will incur an expense related to the settlement or final adjudication of these matters and whether a reasonable estimation of the probable loss, if any, can be made. The Group accrue a liability when a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential recovery, it is possible that disputed matters may be resolved for amounts materially different from any provisions or disclosures that the Group has previously made. |
Net Income (Loss) per Share | (z) Net Income (Loss) per Share Basic net income or loss per share is computed by dividing net income or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised into ordinary shares. Common share equivalents are excluded from the computation of the diluted net income per share in years when their effect would be anti-dilutive. Diluted net income or loss per share is computed by giving effect to all potential dilutive shares, including stock options and unvested restricted shares. To calculate the number of shares for diluted income per share, the effect of the stock options and restricted share units is computed using the treasury stock method. |
Foreign Currency Translation | (aa) Foreign Currency Translation The functional currency of the Company, Jupai Investment International Limited, Scepter Holdings Limited, and Scepter Pacific Limited is the United States dollar (“U.S. dollar”). The functional currency of Jupai Hong Kong, Jucheng Insurance Broker Limited and Non-Linear Investment Management Ltd., is the Hong Kong Dollar (“HKD”). The subsidiaries in the PRC and the VIEs determined their functional currency to be the Chinese Renminbi (“RMB”). The determination of the respective functional currency is based on the criteria of ASC 830, Foreign Currency Matters. Assets and liabilities of the Group’s overseas entities denominated in currencies other than RMB are translated into RMB at the rates of exchange ruling 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 foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the consolidated statements of comprehensive income. Amounts in USD are solely for the convenience of the readers and were calculated at the rate of USD1.00 for RMB 7.0999 on December 31, 2023, representing the certificated exchange rate published by the Federal Reserve Board. This presentation is not intended to be an indication of the actual USD amount for the underlying transactions, assets or liabilities. |
Comprehensive Income | (ab) Comprehensive Income Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income included net income, foreign currency translation adjustments, net of tax effect. |
Recently issued accounting pronouncements | (ac) Recently issued accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Group’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early application of the pending content that links to this paragraph is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Group has adopted this guidance, which currently has no impact on the group’s consolidated financial statements. |
Deconsolidation of subsidiary | (ad) Deconsolidation of subsidiary |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of subsidiaries | The Company’s significant subsidiaries as of December 31, 2023 include the following: Date of Place of Percentage of Shanghai Juxiang Investment Management Consulting Co., Ltd. July 16, 2013 PRC 100 % Baoyi Investment Consulting (Shanghai) Co., Ltd. (“Shanghai July 16, 2015 PRC 100 % Jupai HongKong Investment Limited (“Jupai Hong Kong”) August 21, 2012 Hong Kong 100 % |
Shanghai Yedu's | |
Schedule of subsidiaries | Shanghai Yedu's significant subsidiaries as of December 31, 2023 include the following: Date of Place of Percentage of Shanghai Yidexin Equity Investment Management Co., Ltd ("Yidexin") July 16, 2015 PRC 100 % |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of amounts of variable interest entity included in the Group's consolidated financial statements | As of December 31, 2022 2023 2023 RMB RMB USD Cash and cash equivalents 875,322 972,324 136,949 Accounts receivable, net — 2,280,000 321,131 Other receivables, net 239,884 — — Amounts due from related parties, net of allowance for doubtful 68,183,377 — — Other current assets 693,670 574,771 80,955 Total assets 69,992,253 3,827,095 539,035 Accrued payroll and welfare expenses 4,331,827 2,000,000 281,694 Income tax payable 651,587 ( 21,213,724 ) ( 2,987,891 ) Amounts due to related parties-current 115,748,800 50,122,823 7,059,652 Deferred revenue — current from related parties 1,954,481 1,903,302 268,074 Other current liabilities ( 271,617 ) 2,178 307 Total liabilities 122,415,078 32,814,579 4,621,837 Years ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Net revenues 211,170,667 37,880,143 5,784,763 814,767 Third party 121,437,225 23,344,191 — — Related party 89,733,442 14,535,952 5,784,763 814,767 Operating cost and expenses ( 245,086,293 ) ( 45,452,147 ) ( 3,914,178 ) ( 551,300 ) Net loss ( 318,719,762 ) ( 61,667,033 ) 2,527,592 356,004 Net income (loss) attributable to ordinary shareholders ( 292,177,990 ) ( 57,615,283 ) 2,527,592 356,004 Cash flows provided by (used in) operating activities: ( 94,348,770 ) ( 34,058,526 ) 97,003 13,663 Cash flows provided by (used in) investing activities: 4,117,700 ( 91,320,453 ) — — |
Schedule of estimated useful lives of property, plant, and equipment | Estimated Useful Lives in Years Leasehold improvements Shorter of the lease term or expected useful life Furniture, fixtures, and equipment 3 - 5 years Motor vehicles 5 years |
Schedule of disaggregation of revenue | Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD One-time commissions 142,299,783 27,878,590 2,786,454 392,464 Related party 13,477,880 2,127,736 2,452,830 345,474 Third party 128,821,903 25,750,854 333,624 46,990 Recurring management fee 102,896,582 32,433,896 19,719,200 2,777,391 Related party 102,896,582 32,433,896 19,719,200 2,777,391 Recurring service fees 115,376,632 42,887,064 3,470,913 488,868 Related party 10,025,528 391,248 — — Third party 105,351,104 42,495,816 3,470,913 488,868 Other service fee — — 7,818,629 1,101,231 Related party — — 7,818,629 1,101,231 Third party — — — — Total revenues 360,572,997 103,199,550 33,795,196 4,759,954 |
Summary of intangible assets estimated useful lives | Acquired intangible assets mainly consist of customer contracts, internal-used software and licenses from business combinations and are recorded at fair value on the acquisition date. Customer contracts, internal-used software and certain licenses are amortized using a straight-line method. Most of the licenses are determined to be indefinitely-lived, and not subject to amortization. Estimated Useful Lives in Years Customer contracts 3.5 years Internal-used software 10 years Licenses amortized Shorter of the legal rights or expected useful life |
Net Income (loss) per Share (Ta
Net Income (loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of antidilutive securities excluded from computation of earnings per share | Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive: As of December 31, 2021 2022 2023 Share options 7,816,863 7,399,661 7,371,961 Restricted shares 898,896 242,844 211,944 Total 8,715,759 7,642,505 7,583,905 |
Allowance for doubtful accoun_2
Allowance for doubtful accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Allowance For Doubtful Accounts [Abstract] | |
Schedule of allowance for accounts receivable, other receivables and amounts due from related parties | Years Ended December 31, 2021 2022 2023 RMB RMB RMB Balance as of January 1 135,635,759 145,035,759 107,403,901 Provisions for doubtful accounts 9,400,000 28,923,874 5,838,484 Write-off — ( 66,555,732 ) — Balance as of December 31 145,035,759 107,403,901 113,242,385 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment balances | The following table summarizes the Group’s investment balances: As of December 31, 2022 2023 2023 RMB RMB USD Short-term investments Equity securities - trading securities — — — Long-term investments Equity securities without readily determinable fair values 200,000,000 200,000,000 28,169,411 Total investments 200,000,000 200,000,000 28,169,411 |
Investment in Affiliates (Table
Investment in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of Balances of Investment in Affiliates | The following table summarizes the Group’s investment in affiliates by RMB and ownership percentage: As of December 31 2022 2023 2023 RMB % RMB % USD % Private equity funds that the Company serves as general partner or fund manager — — — — — — Shanghai Jiakun Real Estate Development Co., Ltd ("Jiakun") (1) 29,886,783 100.0 % — — — — Total investments 29,886,783 — — — — — The investments above are accounted for using equity method of accounting. (1) The Group invested RMB 30,000,000 for 44 % equity interest in Shanghai Jiakun Real Estate Development Co., Ltd in January, 2021 and accounted for the investment with equity method accounting. The main operating business is real estate development and management. In 2023, due to the overall decline in the Chinese real estate industry, Shanghai Jiakun Real Estate Development Co., Ltd was affected. The company faced serious operational and financial crises. The management evaluated the value of its equity and decided to make a full provision for impairment of this investment. |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant, and equipment | As of December 31, 2022 2023 2023 RMB RMB USD Leasehold improvements 51,917,017 51,917,017 7,312,359 Furniture, fixtures and equipment 6,125,266 5,396,172 760,035 Motor vehicles 1,951,239 1,480,019 208,456 Total 59,993,522 58,793,208 8,280,850 Accumulated depreciation ( 58,918,494 ) ( 58,192,581 ) ( 8,196,253 ) Property, plant, and equipment, net 1,075,028 600,627 84,597 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of intangible assets | Intangible assets are comprised of the following: As of December 31, 2022 2023 2023 RMB RMB USD Customer contracts 67,574,728 68,720,605 9,679,095 Software 3,504,421 3,504,421 493,587 Less: Accumulated amortization - customer contracts ( 64,656,059 ) ( 64,656,059 ) ( 9,106,615 ) Less: Accumulated amortization - software ( 3,365,974 ) ( 3,504,421 ) ( 493,587 ) Intangible assets subject to amortization 3,057,116 4,064,546 572,480 Foreign currency translation adjustment ( 2,918,669 ) ( 4,064,546 ) ( 572,480 ) Intangible assets, net 138,447 — — |
Schedule of Amortization Expense | The amortization expense for the next five years and thereafter as of December 31, 2022 and 2023, are as follows: As of December 31 2022 2023 RMB RMB Within 1 year 30,196 - Between 1 and 2 years 30,196 - Between 2 and 3 years 30,196 - Between 3 and 4 years 30,196 - Over 4 years and thereafter 17,663 - Total 138,447 - |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Option Activity | Number of Weighted Remaining Aggregate RMB RMB Outstanding, as of January 1, 2023 7,399,661 4.03 1.62 Forfeited ( 27,700 ) 3.40 Outstanding, as of December 31, 2023 7,371,961 4.14 0.62 — Exercisable as of December 31, 2023 7,371,961 4.14 0.62 — |
Summary of Restricted Share Activity | Number of Weighted RMB Unvested, as of January 1, 2023 242,844 3.28 Granted — — Forfeited ( 30,900 ) 2.23 Vested — — Unvested, as of December 31, 2023 211,944 3.53 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of tax expense | The tax expense comprises: Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB USD Current Tax 2,193,861 1,430,641 2,619,402 368,935 Deferred Tax 151,473 724,480 — — Total 2,345,334 2,155,121 2,619,402 368,935 |
Schedule of reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes | Reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes is as follows: Years Ended December 31, 2021 2022 2023 PRC income tax rate 25.00 % 25.00 % 25.00 % Expenses not deductible for income tax purposes ( 26.45 )% 10.69 % 0.00 % Losses not deductible for income tax purposes ( 0.81 )% 31.12 % ( 35.50 )% Valuation allowance of deferred tax assets 2.16 % ( 67.26 )% 8.97 % Different tax rate of subsidiary operation in other jurisdiction ( 0.71 )% 4.78 % ( 0.04 )% Additional payments for previous year's corporate income taxes 14.01 % Effective income tax rate - 0.81 % 4.33 % 12.44 % |
Schedule of principal components of the deferred income tax asset and liabilities | The principal components of the deferred income tax asset and liabilities are as follows: As of December 31, 2022 2023 2023 RMB RMB USD Deferred tax assets: Accrued expenses — — — Tax loss carry forward 36,182,919 28,747,826 4,049,047 Gross deferred tax assets 36,182,919 28,747,826 4,049,047 Valuation allowance ( 36,182,919 ) ( 28,747,826 ) ( 4,049,047 ) Net deferred tax assets — — — |
Schedule of movement of valuation allowance | Movement of the valuation allowance is as follows: As of December 31, 2021 2022 2023 2023 RMB RMB RMB USD Balance as of January 1 63,563,642 56,542,077 36,182,919 5,096,258 Additions (utilization) ( 6,223,503 ) 6,799,359 ( 1,936,931 ) ( 272,811 ) Write-offs ( 798,062 ) ( 27,158,517 ) ( 5,498,162 ) ( 774,400 ) Balance as of December 31 56,542,077 36,182,919 28,747,826 4,049,047 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | a. Revenue from Related Parties Years Ended December 31 2021 2022 2023 2023 RMB RMB RMB USD One-time commissions Funds managed by Jupai Group 13,477,880 1,949,708 2,452,830 345,474 Investees of shareholder of the Company — 178,028 — — Total one-time commissions 13,477,880 2,127,736 2,452,830 345,474 Funds managed by Jupai Group 102,896,582 32,433,896 19,719,200 2,777,391 Total recurring management fee 102,896,582 32,433,896 19,719,200 2,777,391 Funds managed by Jupai Group 10,025,528 391,248 — — Total recurring service fee 10,025,528 391,248 — — Enterprise management services — — 7,818,629 1,101,231 Total other service fee — — 7,818,629 1,101,231 Total revenue from related parties 126,399,990 34,952,880 29,990,659 4,224,096 b. Amounts due from Related Parties As of December 31, 2022 and 2023, amounts due from related parties were comprised of the following: As of December 31, 2022 2023 2023 RMB RMB USD Service fee receivable 18,756,144 2,570,000 361,977 Loan to related parties 200,000,000 420,000,000 59,155,763 Loan to noncontrolling interest shareholder — — — Total amounts due from related parties 218,756,144 422,570,000 59,517,740 c. Deferred Revenue from Related Parties As of December 31, 2022 and 2023, deferred revenue from related parties was comprised of the following: As of December 31, 2022 2023 2023 RMB RMB USD Funds managed by Jupai Group 2,091,273 1,903,302 268,074 Total deferred revenue 2,091,273 1,903,302 268,074 d. Amounts due to Related Parties As of December 31, 2022 and 2023, amounts due to related parties were as following: As of December 31, 2022 2023 2023 RMB RMB USD Funds managed by Jupai Group 5,992,010 — — Investees of shareholder of the Company — — — Total amounts due to related parties 5,992,010 0 0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under non-cancelable operating lease agreements | Future minimum lease payments under non-cancelable operating lease agreements as of December 31, 2023 were as follows: Years Ended December 31, RMB 2024 4,884,270 2025 4,034,608 2026 — Total 8,918,878 |
Organization and Principal Ac_3
Organization and Principal Activities - Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Shanghai Juxiang Investment Management Consulting Co., Ltd. ("Shanghai Juxiang") | |
Subsidiaries | |
Date of Incorporation/acquisition | Jul. 16, 2013 |
Percentage of Ownership | 100% |
Baoyi Investment Consulting (Shanghai) Co., Ltd. ("Baoyi") | |
Subsidiaries | |
Date of Incorporation/acquisition | Jul. 16, 2015 |
Percentage of Ownership | 100% |
Jupai HongKong Investment Limited ("Jupai Hong Kong") | |
Subsidiaries | |
Date of Incorporation/acquisition | Aug. 21, 2012 |
Percentage of Ownership | 100% |
Shanghai Yidexin Equity Investment Management Co., Ltd ("Yidexin") | Shanghai Yedu's | |
Subsidiaries | |
Date of Incorporation/acquisition | Jul. 16, 2015 |
Percentage of Ownership | 100% |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies - VIEs - Additional Information (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Variable interest entity | ||
Maximum exposure to loss in non-consolidated VIEs | ¥ 0 | ¥ 0 |
Shanghai Jupai | ||
Variable interest entity | ||
Notice period for termination of voting rights proxy agreement with VIE | 30 days | |
Shanghai E Chengs | ||
Variable interest entity | ||
Voting right proxy agreement (in years) | 20 years | |
Extension term of agreement (in years) | 1 year | |
Term of loan agreement (in years) | 20 years |
Summary of Principal Accounti_5
Summary of Principal Accounting Policies - VIEs (Details) | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Variable interest entity | ||||||
Cash and cash equivalents | ¥ 261,275,422 | ¥ 480,260,071 | ¥ 601,769,949 | $ 36,799,874 | $ 36,799,874 | |
Accounts receivable, net | 2,280,000 | 321,131 | ||||
Other current assets | 3,203,886 | 3,398,964 | 451,258 | |||
Total Assets | 917,995,483 | 950,307,331 | 129,296,961 | |||
Accrued payroll and welfare expenses | 5,504,000 | 11,028,008 | 775,222 | |||
Income tax payable | 28,381,583 | 29,812,224 | 3,997,462 | |||
Amounts due to related parties-current | 5,992,010 | |||||
Deferred revenue - current from related parties | 1,903,302 | 2,091,273 | 268,074 | |||
Other current liabilities | 48,083,188 | 38,841,490 | 6,772,375 | |||
Total Liabilities | 90,646,568 | 100,595,606 | 12,767,301 | |||
Net revenues | 33,567,078 | $ 4,727,824 | 103,234,121 | 359,054,139 | ||
Operating cost and expenses | 28,834,008 | 4,061,185 | 206,466,622 | 360,229,702 | ||
Net loss | (23,666,872) | (3,333,409) | 16,104,062 | (294,637,791) | ||
Cash flows provided by (used in) operating activities: | 5,292,207 | 745,392 | (63,196,994) | (26,107,120) | ||
Cash flows provided by (used in) investing activities: | (209,850,110) | (29,556,770) | (87,388,842) | (9,859,492) | ||
Consolidated VIE and VIE's subsidiaries | ||||||
Variable interest entity | ||||||
Cash and cash equivalents | 972,324 | 875,322 | 136,949 | |||
Accounts receivable, net | 2,280,000 | 321,131 | ||||
Other receivables, net | 239,884 | |||||
Amounts due from related parties, net of allowance for doubtful accounts of RMB2,452,852 and RMB2,452,852 as of December 31, 2022 and 2023, respectively | 68,183,377 | |||||
Other current assets | 574,771 | 693,670 | 80,955 | |||
Total Assets | 3,827,095 | 69,992,253 | 539,035 | |||
Accrued payroll and welfare expenses | 2,000,000 | 4,331,827 | 281,694 | |||
Income tax payable | (21,213,724) | 651,587 | (2,987,891) | |||
Amounts due to related parties-current | 50,122,823 | 115,748,800 | 7,059,652 | |||
Deferred revenue - current from related parties | 1,903,302 | 1,954,481 | 268,074 | |||
Other current liabilities | 2,178 | (271,617) | 307 | |||
Total Liabilities | 32,814,579 | 122,415,078 | $ 4,621,837 | |||
Net revenues | 5,784,763 | 814,767 | 37,880,143 | 211,170,667 | ||
Operating cost and expenses | (3,914,178) | (551,300) | (45,452,147) | (245,086,293) | ||
Net loss | 2,527,592 | 356,004 | (61,667,033) | (318,719,762) | ||
Net income (loss) attributable to ordinary shareholders | 2,527,592 | 356,004 | (57,615,283) | (292,177,990) | ||
Cash flows provided by (used in) operating activities: | 97,003 | 13,663 | (34,058,526) | (94,348,770) | ||
Cash flows provided by (used in) investing activities: | (91,320,453) | 4,117,700 | ||||
Consolidated VIE and VIE's subsidiaries | Third party | ||||||
Variable interest entity | ||||||
Net revenues | 23,344,191 | 121,437,225 | ||||
Consolidated VIE and VIE's subsidiaries | Related party | ||||||
Variable interest entity | ||||||
Net revenues | ¥ 5,784,763 | $ 814,767 | ¥ 14,535,952 | ¥ 89,733,442 |
Summary of Principal Accounti_6
Summary of Principal Accounting Policies - VIE percentages (Details) - Item | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable interest entity | ||||
Number of terms in arrangements to provide financial support to VIEs | 0 | |||
Consolidated VIE and VIE's subsidiaries | ||||
Variable interest entity | ||||
Percentage of consolidated revenues contributed by VIE | 7% | 37% | 59% | |
Percentage of consolidated net income contributed by VIE | (11.00%) | (289.00%) | 109% | |
Percentage of consolidated total assets contributed by VIE | 0.40% | 7% |
Summary of Principal Accounti_7
Summary of Principal Accounting Policies - Investments in Affiliates (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Juzhou Film and Television Fund | ||||
Investments in affiliates | ||||
Impairment loss recorded from equity in affiliates | ¥ 2.6 | |||
Jufu Guangsheng M&A Private Equity Fund | ||||
Investments in affiliates | ||||
Impairment loss recorded from equity in affiliates | ¥ 29.9 | ¥ 28.7 | ||
Maximum | Funds | ||||
Investments in affiliates | ||||
Equity method investment, ownership percentage (in percentage) | 5% | |||
Minimum | Affiliates | ||||
Investments in affiliates | ||||
Equity method investment, ownership percentage (in percentage) | 20% |
Summary of Principal Accounti_8
Summary of Principal Accounting Policies - Accounts Receivable (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts receivable | |||
Recorded allowance for doubtful accounts for the year | ¥ 0 | ¥ 0 | ¥ 0 |
Other receivables, net | |||
Allowance for loan receivables and deposits for lessor and other suppliers | ¥ 300 | ¥ 3 | ¥ 9,400 |
Summary of Principal Accounti_9
Summary of Principal Accounting Policies - PPE (Details) | Dec. 31, 2023 |
Leasehold improvements | |
Property Plant And Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Motor vehicles | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 5 years |
Maximum | Furniture, fixtures and equipment | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 5 years |
Minimum | Furniture, fixtures and equipment | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 3 years |
Summary of Principal Account_10
Summary of Principal Accounting Policies - Leases (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jan. 01, 2019 CNY (¥) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lessee, Operating Lease, Existence of Option to Extend | false | |||
Lessee, Operating Lease, Existence of Option to Terminate | false | |||
Right-of-use assets | ¥ 8,491,453 | $ 1,195,996 | ¥ 11,448,145 | ¥ 152,300,000 |
Lease liabilities | 144,300,000 | |||
Accumulated deficit | ¥ (320,552,501) | $ (45,148,875) | ¥ (296,885,493) | |
Cumulative effect adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accumulated deficit | ¥ 0 |
Summary of Principal Account_11
Summary of Principal Accounting Policies - Revenue Recognition (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Revenue | ||||
Revenues | ¥ 33,795,196 | $ 4,759,954 | ¥ 103,199,550 | ¥ 360,572,997 |
Related party | ||||
Revenue | ||||
Revenues | 29,990,659 | 4,224,096 | 34,952,880 | 126,399,990 |
Third party | ||||
Revenue | ||||
Revenues | 3,804,537 | 535,858 | 68,246,670 | 234,173,007 |
One-time commissions | ||||
Revenue | ||||
Revenues | 2,786,454 | 392,464 | 27,878,590 | 142,299,783 |
One-time commissions | Related party | ||||
Revenue | ||||
Revenues | 2,452,830 | 345,474 | 2,127,736 | 13,477,880 |
One-time commissions | Third party | ||||
Revenue | ||||
Revenues | 333,624 | 46,990 | 25,750,854 | 128,821,903 |
Recurring management fee | ||||
Revenue | ||||
Revenues | 19,719,200 | 2,777,391 | 32,433,896 | 102,896,582 |
Recurring management fee | Related party | ||||
Revenue | ||||
Revenues | 19,719,200 | 2,777,391 | 32,433,896 | 102,896,582 |
Recurring service fees | ||||
Revenue | ||||
Revenues | 3,470,913 | 488,868 | 42,887,064 | 115,376,632 |
Recurring service fees | Related party | ||||
Revenue | ||||
Revenues | 391,248 | 10,025,528 | ||
Recurring service fees | Third party | ||||
Revenue | ||||
Revenues | 3,470,913 | 488,868 | ¥ 42,495,816 | ¥ 105,351,104 |
Other service fee | ||||
Revenue | ||||
Revenues | 7,818,629 | 1,101,231 | ||
Other service fee | Related party | ||||
Revenue | ||||
Revenues | ¥ 7,818,629 | $ 1,101,231 |
Summary of Principal Account_12
Summary of Principal Accounting Policies - Revenue Recognition - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 CNY (¥) Item | Dec. 31, 2022 CNY (¥) | |
Revenue | ||
Number of criteria to be met for recognition of revenue from one-time commissions | Item | 2 | |
Contract liabilities | ¥ 3,082,547 | ¥ 4,892,374 |
Deferred revenue recognized | ¥ 3,700,000 | |
Practical Expedient, Incremental cost of obtaining contract [true false] | true | |
Practical Expedient, Nondisclosure of transaction price allocation to remaining performance obligation [true false] | true | |
Contract liabilities within one year | ||
Revenue | ||
Contract liabilities | ¥ 1,903,302 | ¥ 3,713,129 |
Summary of Principal Account_13
Summary of Principal Accounting Policies - Revenue Recognition - Additional Information (Details1) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue | ||
Contract liabilities | ¥ 3,082,547 | ¥ 4,892,374 |
Contract liabilities within one year | ||
Revenue | ||
Contract liabilities | ¥ 1,903,302 | ¥ 3,713,129 |
Contract liabilities within one year | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | ||
Revenue | ||
Performance obligation, expected timing of satisfaction, period | 1 year | 1 year |
Contract liabilities over one year to two years | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | ||
Revenue | ||
Contract liabilities | ¥ 1,179,245 | ¥ 1,179,245 |
Contract liabilities over one year to two years | Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | ||
Revenue | ||
Performance obligation, expected timing of satisfaction, period | 1 year | 1 year |
Contract liabilities over one year to two years | Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | ||
Revenue | ||
Performance obligation, expected timing of satisfaction, period | 2 years | 2 years |
Summary of Principal Account_14
Summary of Principal Accounting Policies - Sales Related Tax (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
VAT rate, minimum (as a percentage) | 1% |
VAT rate, maximum (as a percentage) | 6% |
Summary of Principal Account_15
Summary of Principal Accounting Policies - Selling Expenses (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Marketing and promotion services | ¥ 0 | ¥ 497,874 | ¥ 1,889,482 |
Summary of Principal Account_16
Summary of Principal Accounting Policies - Intangible Assets (Details) | Dec. 31, 2023 |
Customer contracts | |
Intangible assets | |
Estimated useful life | 3 years 6 months |
Internal-used software | |
Intangible assets | |
Estimated useful life | 10 years |
Summary of Principal Account_17
Summary of Principal Accounting Policies - Foreign Currency Translation (Details) | Dec. 31, 2023 |
Accounting Policies [Abstract] | |
Exchange rate of RMB to US$1.00 | 7.0999 |
Net Income (loss) per Share - A
Net Income (loss) per Share - Antidilutive securities excluded (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Total | 7,583,905 | 7,642,505 | 8,715,759 |
Share options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Total | 7,371,961 | 7,399,661 | 7,816,863 |
Restricted shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Total | 211,944 | 242,844 | 898,896 |
Allowance for doubtful accoun_3
Allowance for doubtful accounts (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Allowance For Doubtful Accounts [Abstract] | ||||
Beginning balance | ¥ 107,403,901 | ¥ 145,035,759 | ¥ 135,635,759 | |
Provisions for doubtful accounts | 5,838,484 | $ 822,333 | 28,923,874 | 9,400,000 |
Write-off | (66,555,732) | |||
Ending balance | ¥ 113,242,385 | ¥ 107,403,901 | ¥ 145,035,759 |
Allowance for doubtful accoun_4
Allowance for doubtful accounts - Additional Information (Details) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Additional information | ||
Accounts receivable, allowance for doubtful accounts | ¥ 25,435,692 | ¥ 25,435,692 |
Allowance for other receivables | 11,718,489 | |
Amounts due from related parties, allowance for doubtful accounts | 75,443,757 | ¥ 69,880,157 |
Allowance for other non-current assets | ¥ 644,447 |
Investments - Table (Details)
Investments - Table (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Investments | |||
Long-term investments | ¥ 200,000,000 | $ 28,169,411 | ¥ 200,000,000 |
Total investments | 200,000,000 | 28,169,411 | 200,000,000 |
Equity Securities | |||
Investments | |||
Long-term investments | ¥ 200,000,000 | $ 28,169,411 | ¥ 200,000,000 |
Investments - Paragraphs (Detai
Investments - Paragraphs (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments | |||
Debt securities, investment income | ¥ 0 | ¥ 0 | ¥ 131,137 |
Equity investments without readily determinable fair values downward price adjustment | 0 | ||
Equity investments without readily determinable fair values upward price adjustment | 0 | ||
Investments in equity securities without readily determinable fair value | 200,000,000 | 200,000,000 | |
Impairment loss | ¥ 0 | ¥ 2,800,000 | ¥ 10,000,000 |
Investment, Type [Extensible Enumeration] | Private Equity Funds [Member] | Private Equity Funds [Member] | Private Equity Funds [Member] |
Investment in affiliates (Detai
Investment in affiliates (Details) - CNY (¥) | Dec. 31, 2022 | Jan. 31, 2021 |
Investments | ||
Investment in affiliates | ¥ 29,886,783 | |
Jiakun | ||
Investments | ||
Investment in affiliates | ¥ 29,886,783 | |
Equity method investment, ownership percentage (in percentage) | 100% | 44% |
Investment in affiliates (Paren
Investment in affiliates (Parenthetical) (Details) - Jiakun - CNY (¥) | 1 Months Ended | |
Jan. 31, 2021 | Dec. 31, 2022 | |
Investments | ||
Equity method investment, ownership percentage (in percentage) | 44% | 100% |
Payments to acquire equity investments | ¥ 30,000,000 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, gross | ¥ 58,793,208 | $ 8,280,850 | ¥ 59,993,522 |
Accumulated depreciation | (58,192,581) | (8,196,253) | (58,918,494) |
Property, plant, and equipment, net | 600,627 | 84,597 | 1,075,028 |
Leasehold improvements | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, gross | 51,917,017 | 7,312,359 | 51,917,017 |
Furniture, fixtures and equipment | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, gross | 5,396,172 | 760,035 | 6,125,266 |
Motor vehicles | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, gross | ¥ 1,480,019 | $ 208,456 | ¥ 1,951,239 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, Net - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | ¥ 426,728 | ¥ 4,599,402 | ¥ 7,342,946 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets subject to amortization | ¥ 4,064,546 | $ 572,480 | ¥ 3,057,116 |
Foreign currency translation adjustment | (4,064,546) | (572,480) | (2,918,669) |
Intangible assets, net | 138,447 | ||
Customer contracts | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets subject to amortization, gross | 68,720,605 | 9,679,095 | 67,574,728 |
Less: Accumulated amortization | (64,656,059) | (9,106,615) | (64,656,059) |
Software | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets subject to amortization, gross | 3,504,421 | 493,587 | 3,504,421 |
Less: Accumulated amortization | ¥ (3,504,421) | $ (493,587) | ¥ (3,365,974) |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Amortization expense | ¥ 138,447 | ¥ 4,540,289 | ¥ 3,768,010 |
Loss from disposal of intangible assets | ¥ 0 | ¥ 10,500,476 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Amortization Expense (Details) | Dec. 31, 2022 CNY (¥) |
Future amortization expense | |
Within 1 year | ¥ 30,196 |
Between 1 and 2 years | 30,196 |
Between 2 and 3 years | 30,196 |
Between 3 and 4 years | 30,196 |
Over 4 years and thereafter | 17,663 |
Total | ¥ 138,447 |
Leases (Details)
Leases (Details) ¥ in Millions | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Leases | |
Operating lease cost | ¥ 4.8 |
Weighted average remaining lease term | 1 year 10 months 17 days |
Weighted average discount rate | 5.70% |
Minimum | |
Leases | |
Remaining lease terms | 1 year |
Maximum | |
Leases | |
Remaining lease terms | 2 years |
Share-Based Compensation - Auth
Share-Based Compensation - Authorized (Details) - 2014 Plan - shares | 1 Months Ended | |
Dec. 31, 2015 | Jul. 31, 2014 | |
Share-Based Compensation | ||
Ordinary shares initially authorized under the Plan | 26,938,020 | 17,570,281 |
Percent of ordinary shares authorized to increase on each of the third, sixth and ninth anniversaries of the effective date | 5% | |
Increase in ordinary shares authorized under the Plan | 9,367,739 |
Share-Based Compensation - Shar
Share-Based Compensation - Share Options - Additional Information (Details) | 12 Months Ended | |||||
Apr. 02, 2015 $ / shares shares | Jul. 01, 2014 $ / shares shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2015 CNY (¥) shares | |
2014 Plan | ||||||
Share-Based Compensation | ||||||
Replacement options | shares | 2,525,000 | |||||
Scepter Plan | ||||||
Share-Based Compensation | ||||||
Options replaced | shares | 505,000 | |||||
Options Replacement Program | ||||||
Share-Based Compensation | ||||||
Share based compensation costs capitalized | ¥ | ¥ 13,702,194 | |||||
Compensation expense | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | |||
Share options | ||||||
Share-Based Compensation | ||||||
Options granted (in shares) | shares | 1,061,600 | 12,056,000 | ||||
Expiration period of awards granted | 10 years | 10 years | ||||
Vesting period | 3 years | 3 years | ||||
Exercised (in dollars per share) | $ / shares | $ 1 | $ 0.48 | ||||
Share options | 2014 Plan | ||||||
Share-Based Compensation | ||||||
Options granted (in shares) | shares | 0 | 0 | 0 | |||
Aggregate Intrinsic Value of Options | ||||||
Intrinsic value of options exercised | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | |||
Other disclosures | ||||||
Unrecognized compensation expense | ¥ | ¥ 0 |
Share-Based Compensation - Opti
Share-Based Compensation - Options (Details) - 2014 Plan - Share options - ¥ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Options | ||
Outstanding at beginning of year (in shares) | 7,399,661 | |
Forfeited (in shares) | (27,700) | |
Outstanding at end of year (in shares) | 7,371,961 | 7,399,661 |
Exercisable at end of year (in shares) | 7,371,961 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of year (in dollars per share) | ¥ 4.03 | |
Forfeited | 3.40 | |
Outstanding, as of December 31, 2023 | 4.14 | ¥ 4.03 |
Exercisable as of December 31, 2023 | ¥ 4.14 | |
Remaining Contractual Term | ||
Remaining contractual term | 7 months 13 days | 1 year 7 months 13 days |
Exercisable at end of year (in years) | 7 months 13 days |
Share-Based Compensation - Non-
Share-Based Compensation - Non-vested restricted shares - Additional Information (Details) | 12 Months Ended | ||||
Jan. 29, 2021 $ / shares shares | Jan. 04, 2019 $ / shares shares | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Other disclosures | |||||
Fair value of shares vested | ¥ 0 | ¥ 0 | ¥ 1,398,000 | ||
Restricted shares | |||||
Other disclosures | |||||
Fair value of non-vested restricted shares vested | 748,162 | ||||
Compensation expense | 0 | ¥ 0 | ¥ 644,654 | ||
Restricted shares | 2014 Plan | |||||
Other disclosures | |||||
Unrecognized compensation expense | ¥ 205,413 | ||||
Weighted average remaining period over which unrecognized compensation expense will be recognized | 1 year 7 months 6 days | ||||
Restricted shares | Senior management | |||||
Share-Based Compensation | |||||
Vesting period | 3 years | ||||
Granted | shares | 900,000 | ||||
Weighted Average Grant-date Fair Value | |||||
Granted | $ / shares | $ 0.73 | ||||
Restricted shares | Personnel and backstage staff | |||||
Share-Based Compensation | |||||
Granted | shares | 1,008,552 | ||||
Weighted Average Grant-date Fair Value | |||||
Granted | $ / shares | $ 0.32 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Shares (Details) - Restricted shares - 2014 Plan | 12 Months Ended |
Dec. 31, 2023 ¥ / shares shares | |
Share-Based Compensation | |
Number of Shares | shares | 242,844 |
Forfeited | shares | (30,900) |
Number of Shares | shares | 211,944 |
Weighted Average Grant-date Fair Value | |
Unvested, at beginning of year | ¥ / shares | ¥ 3.28 |
Forfeited | ¥ / shares | 2.23 |
Unvested, at end of year | ¥ / shares | ¥ 3.53 |
Income Taxes - PRC and Hong Kon
Income Taxes - PRC and Hong Kong (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
PRC income tax rate | 25% | 25% | 25% |
HONG KONG | |||
Income Taxes | |||
Foreign income tax rate | 16.50% |
Income Taxes - Tax expense (Det
Income Taxes - Tax expense (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
The tax expense comprises: | ||||
Current Tax | ¥ 2,619,402 | $ 368,935 | ¥ 1,430,641 | ¥ 2,193,861 |
Deferred Tax | 0 | 0 | 724,480 | 151,473 |
Total | ¥ 2,619,402 | $ 368,935 | ¥ 2,155,121 | ¥ 2,345,334 |
Income Taxes - Rate reconciliat
Income Taxes - Rate reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes | |||
PRC income tax rate | 25% | 25% | 25% |
Expenses not deductible for income tax purposes | 0% | 10.69% | (26.45%) |
Losses not deductible for income tax purposes | (35.50%) | 31.12% | (0.81%) |
Valuation allowance of deferred tax assets | 8.97% | (67.26%) | 2.16% |
Additional payments for previous year's corporate income taxes | 14.01% | ||
Different tax rate of subsidiary operation in other jurisdiction | (0.04%) | 4.78% | (0.71%) |
Effective income tax rate | 12.44% | 4.33% | (0.81%) |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax asset and liabilities (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Deferred tax assets: | ||||||
Tax loss carry forward | ¥ 28,747,826 | $ 4,049,047 | ¥ 36,182,919 | |||
Gross deferred tax assets | 28,747,826 | 4,049,047 | 36,182,919 | |||
Valuation allowance | ¥ (28,747,826) | $ (4,049,047) | ¥ (36,182,919) | $ (5,096,258) | ¥ (56,542,077) | ¥ (63,563,642) |
Income Taxes - Movement of valu
Income Taxes - Movement of valuation allowance (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Valuation Allowance [Abstract] | ||||
Balance as of January 1 | ¥ 36,182,919 | $ 5,096,258 | ¥ 56,542,077 | ¥ 63,563,642 |
Additions (utilization) | (1,936,931) | (272,811) | 6,799,359 | (6,223,503) |
Write-offs | (5,498,162) | (774,400) | (27,158,517) | (798,062) |
Balance as of December 31 | ¥ 28,747,826 | $ 4,049,047 | ¥ 36,182,919 | ¥ 56,542,077 |
Income Taxes - Operating loss a
Income Taxes - Operating loss and undistributed earnings (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Minimum | ||
Undistributed earnings | ||
Unrecognized deferred tax liabilities for undistributed earnings | ¥ 29,800,000 | |
Maximum | ||
Undistributed earnings | ||
Unrecognized deferred tax liabilities for undistributed earnings | 59,500,000 | |
PRC and Hong Kong | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forward | 118,800,000 | |
PRC | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carry forward, valuation allowance | 28,747,826 | ¥ 36,182,919 |
Undistributed earnings | ||
Undistributed earnings of the Company's PRC subsidiaries | 595,100,000 | |
Provision for PRC dividend withholding tax | ¥ 0 | |
Preferential withholding tax rate of the profit distribution (as a percent) | 5% | |
PRC | Minimum | ||
Undistributed earnings | ||
Withholding tax rate of the profit distribution (as a percent) | 5% | |
PRC | Maximum | ||
Undistributed earnings | ||
Withholding tax rate of the profit distribution (as a percent) | 10% |
Income Taxes - Uncertain tax po
Income Taxes - Uncertain tax positions (Details) - PRC ¥ in Millions | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Uncertain tax position | |
Statue of limitations, computational errors | 3 years |
Statue of limitations, special circumstances | 5 years |
Threshold of underpayment of tax liability for statute of limitations extended to five years | ¥ 0.1 |
Statue of limitations, related party transaction | 10 years |
Statue of limitations, tax evasion | 0 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Contributions to employee benefit plan | ¥ 1.3 | ¥ 19.9 | ¥ 39.9 |
Ongoing obligation to employees subsequent to contributions to employee benefit plans | ¥ 0 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - Consolidated VIE and VIE's subsidiaries - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Net Assets | ||
Required percentage of annual appropriations to general reserve fund | 10% | |
Limit of general reserve fund as a percentage of registered capital, after which allocations to general reserve fund are no longer required | 50% | |
General reserve fund | ¥ 57,993,936 | ¥ 57,961,029 |
Share capital | 244,212,177 | 244,217,537 |
Restricted net assets, including general reserve and registered capital | ¥ 302,239,020 | ¥ 302,178,566 |
Repurchase of shares (Details)
Repurchase of shares (Details) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 CNY (¥) | Feb. 29, 2020 USD ($) | |
Stockholders' Equity Note [Abstract] | |||
Share repurchase program, authorized amount | $ | $ 10,000,000 | ||
Shares repurchased | shares | 1,922,180 | ||
Total cost | $ 2,109,847 | ¥ 13.4 |
Related Party Transactions - Re
Related Party Transactions - Revenue by parties (Details) - Related party - Related Party | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Related Party Transaction | ||||
Total revenue from related parties | ¥ 29,990,659 | $ 4,224,096 | ¥ 34,952,880 | ¥ 126,399,990 |
One-time commissions | ||||
Related Party Transaction | ||||
Total revenue from related parties | 2,452,830 | 345,474 | 2,127,736 | 13,477,880 |
One-time commissions | Funds managed by Jupai Group | ||||
Related Party Transaction | ||||
Total revenue from related parties | 2,452,830 | 345,474 | 1,949,708 | 13,477,880 |
One-time commissions | Investees of shareholder of the Company | ||||
Related Party Transaction | ||||
Total revenue from related parties | 178,028 | |||
Recurring management fee | ||||
Related Party Transaction | ||||
Total revenue from related parties | 19,719,200 | 2,777,391 | 32,433,896 | 102,896,582 |
Recurring management fee | Funds managed by Jupai Group | ||||
Related Party Transaction | ||||
Total revenue from related parties | 19,719,200 | 2,777,391 | 32,433,896 | 102,896,582 |
Recurring service fees | ||||
Related Party Transaction | ||||
Total revenue from related parties | 391,248 | 10,025,528 | ||
Recurring service fees | Funds managed by Jupai Group | ||||
Related Party Transaction | ||||
Total revenue from related parties | ¥ 391,248 | ¥ 10,025,528 | ||
Other service fee | ||||
Related Party Transaction | ||||
Total revenue from related parties | 7,818,629 | 1,101,231 | ||
Other service fee | Enterprise management services | ||||
Related Party Transaction | ||||
Total revenue from related parties | ¥ 7,818,629 | $ 1,101,231 |
Related Party Transactions - Du
Related Party Transactions - Due from Related Parties (Details) - Related Party | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Related Party Transaction | |||
Due from Related Parties | ¥ 422,570,000 | $ 59,517,740 | ¥ 218,756,144 |
Service fee receivable from related party | |||
Related Party Transaction | |||
Due from Related Parties | 2,570,000 | 361,977 | 18,756,144 |
Loans to related party | |||
Related Party Transaction | |||
Due from Related Parties | ¥ 420,000,000 | $ 59,155,763 | ¥ 200,000,000 |
Related Party Transactions - Am
Related Party Transactions - Amounts due from related parties - Additional Information (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Oct. 31, 2019 CNY (¥) |
Related Party Transactions [Abstract] | ||||
Loan to Related Parties | ¥ 210,000,000 | ¥ 200,000,000 | ||
Amounts due from related parties, allowance for doubtful accounts | 75,443,757 | ¥ 69,880,157 | ||
Allowance for credit losses | ¥ 0 | $ 0 | ¥ 28,208,290 |
Related Party Transactions - De
Related Party Transactions - Deferred revenue and amounts due to parties (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Related Party Transaction | |||
Total deferred revenue | ¥ 1,903,302 | $ 268,074 | ¥ 2,091,273 |
Funds managed by Jupai Group | |||
Related Party Transaction | |||
Total deferred revenue | 1,903,302 | 268,074 | 2,091,273 |
Related Party | |||
Related Party Transaction | |||
Total amounts due to related parties | ¥ 0 | $ 0 | 5,992,010 |
Related Party | Funds managed by Jupai Group | |||
Related Party Transaction | |||
Total amounts due to related parties | ¥ 5,992,010 |
Commitments and Contingencies -
Commitments and Contingencies - Future minimum lease payments (Details) | Dec. 31, 2023 CNY (¥) |
Future minimum lease payments | |
2024 | ¥ 4,884,270 |
2025 | 4,034,608 |
2026 | 0 |
Total | ¥ 8,918,878 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expenses | ¥ 4,754,041 | ¥ 14,876,505 | ¥ 30,636,589 |
Commitments and Contingencies_3
Commitments and Contingencies - Investment commitments (Details) | Dec. 31, 2023 CNY (¥) |
Investment commitments | |
Capital commitment | ¥ 0 |
Additional Financial Informat_2
Additional Financial Information of Parent Company - Schedule I Balance Sheets (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
ASSETS | ||||||
Cash and cash equivalents | ¥ 261,275,422 | $ 36,799,874 | ¥ 480,260,071 | $ 36,799,874 | ¥ 601,769,949 | |
Other current assets | 3,203,886 | 451,258 | 3,398,964 | |||
Total current assets | 282,601,683 | 39,803,615 | 496,613,611 | |||
Investment in subsidiaries and VIE | 29,886,783 | |||||
Total Assets | 917,995,483 | 129,296,961 | 950,307,331 | |||
LIABILITIES | ||||||
Other current liabilities | 48,083,188 | 6,772,375 | 38,841,490 | |||
Total Liabilities | 90,646,568 | 12,767,301 | 100,595,606 | |||
Ordinary Shares (USD0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 191,052,818 and 191,052,818 shares issued and outstanding, as of December 31, 2022 and 2023, respectively) | 597,739 | 84,190 | 597,739 | |||
Additional paid-in capital | 1,093,762,610 | 154,053,242 | 1,093,762,610 | |||
Accumulated deficit | (320,552,501) | (45,148,875) | (296,885,493) | |||
Accumulated other comprehensive income | 53,531,219 | 7,539,715 | 52,227,157 | |||
Total Jupai shareholders' equity | 827,339,067 | 116,528,272 | 849,702,013 | |||
TOTAL LIABILITIES AND SHAREHOLERS' EQUITY | 917,995,483 | 129,296,961 | 950,307,331 | |||
Parent Company | ||||||
ASSETS | ||||||
Cash and cash equivalents | (227) | (32) | 13,829,761 | $ 1,947,881 | ¥ 17,664,031 | ¥ 19,582,251 |
Other current assets | 1,134,365 | 159,772 | 785,246 | |||
Total current assets | 1,134,138 | 159,740 | 14,615,007 | |||
Investment in subsidiaries and VIE | 637,819,558 | 89,835,006 | 658,901,691 | |||
Loan to subsidiaries | 211,912,032 | 29,847,185 | 200,190,258 | |||
Total Assets | 850,865,728 | 119,841,931 | 873,706,956 | |||
LIABILITIES | ||||||
Other current liabilities | 10,269,915 | 1,446,487 | 10,969,245 | |||
Amounts due to related parties - non-current | 13,256,746 | 1,867,174 | 13,035,698 | |||
Total Liabilities | 23,526,661 | 3,313,661 | 24,004,943 | |||
Ordinary Shares (USD0.0005 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 191,052,818 and 191,052,818 shares issued and outstanding, as of December 31, 2022 and 2023, respectively) | 597,739 | 84,190 | 597,739 | |||
Additional paid-in capital | 1,093,762,610 | 154,053,242 | 1,093,762,610 | |||
Accumulated deficit | (320,552,501) | (45,148,875) | (296,885,493) | |||
Accumulated other comprehensive income | 53,531,219 | 7,539,713 | 52,227,157 | |||
Total Jupai shareholders' equity | 827,339,067 | 116,528,270 | 849,702,013 | |||
TOTAL LIABILITIES AND SHAREHOLERS' EQUITY | ¥ 850,865,728 | $ 119,841,931 | ¥ 873,706,956 |
Additional Financial Informat_3
Additional Financial Information of Parent Company - Schedule I Balance Sheets Parenthetical (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Shareholders’ Equity: | ||
Ordinary shares, par value ( in dollars per share) | $ 0.0005 | $ 0.0005 |
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | 191,052,818 | 191,052,818 |
Ordinary shares, shares outstanding | 191,052,818 | 191,052,818 |
Parent Company | ||
Shareholders’ Equity: | ||
Ordinary shares, par value ( in dollars per share) | $ 0.0005 | $ 0.0005 |
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | 191,052,818 | 191,052,818 |
Ordinary shares, shares outstanding | 191,052,818 | 191,052,818 |
Additional Financial Informat_4
Additional Financial Information of Parent Company - Schedule I Condensed Statements of Operations and Comprehensive Income (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Statements of Operations and Comprehensive Income | ||||
Revenues | ¥ 33,567,078 | $ 4,727,824 | ¥ 103,234,121 | ¥ 359,054,139 |
Cost of revenues | (5,817) | (819) | (45,383,978) | (156,114,484) |
Selling expenses | (122,773) | (17,292) | (7,746,679) | (90,062,565) |
General and administrative expenses | (28,705,418) | (4,043,074) | (156,701,338) | (119,449,923) |
Other income (loss) | 1,175,715 | 165,596 | (836,304) | (32,782) |
Income (loss) before taxes and gain from equity in affiliates | 8,839,301 | 1,244,990 | 49,805,823 | (288,403,498) |
Income (loss) from equity in subsidiaries and VIEs | (29,886,771) | (4,209,464) | (31,546,640) | (3,888,959) |
Net income (loss) | (23,666,872) | (3,333,409) | 16,104,062 | (294,637,791) |
Other comprehensive loss (income) | 1,304,062 | 183,673 | 19,059,483 | (4,707,094) |
Parent Company | ||||
Condensed Statements of Operations and Comprehensive Income | ||||
Cost of revenues | (261,642) | |||
Selling expenses | (166,959) | |||
General and administrative expenses | (4,478,627) | (630,801) | (4,466,272) | (8,232,681) |
Other income (loss) | 1,286,845 | |||
Income (loss) before taxes and gain from equity in affiliates | (4,478,627) | (630,801) | (9,552,549) | (7,374,437) |
Income (loss) from equity in subsidiaries and VIEs | (19,188,381) | (2,702,627) | 24,377,678 | (260,487,285) |
Net income (loss) | (23,667,008) | (3,333,428) | 19,911,406 | (267,861,722) |
Other comprehensive loss (income) | 1,304,062 | 183,673 | 19,059,483 | (4,761,513) |
Comprehensive income (loss) attributable to ordinary shareholders | ¥ (22,362,946) | $ (3,149,755) | ¥ 38,970,889 | ¥ (272,623,235) |
Additional Financial Informat_5
Additional Financial Information of Parent Company - Schedule I Condensed Statements of Cash Flows (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Share-based compensation | ¥ 644,654 | |||
Income from equity in subsidiaries and VIEs | ¥ 29,886,771 | $ 4,209,464 | ¥ 31,546,640 | 3,888,959 |
Changes in operating assets and liabilities: | ||||
Other current liabilities | 2,653,143 | 373,687 | 24,337,515 | 272,101,301 |
Net cash provided by (used in) operating activities | 5,292,207 | 745,392 | (63,196,994) | (26,107,120) |
Cash flows from investing activities: | ||||
Proceeds from disposal of Non-Linear | (92,678,833) | |||
Net cash provided by (used in) investing activities | (209,850,110) | (29,556,770) | (87,388,842) | (9,859,492) |
Cash flows from financing activities: | ||||
Repurchase of shares | (3,174,100) | (4,462,990) | ||
Net cash used in financing activities | (3,174,100) | (4,462,990) | ||
Effect of exchange rate changes | 1,304,076 | 183,675 | 21,920,756 | (4,707,092) |
Net decrease in cash and cash equivalents | (203,253,827) | (28,627,703) | (131,839,180) | (45,136,694) |
Cash and cash equivalents — beginning of year | 480,260,071 | 36,799,874 | 601,769,949 | |
Cash and cash equivalents — end of year | 261,275,422 | 36,799,874 | 480,260,071 | 601,769,949 |
Parent Company | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (23,667,008) | (3,333,428) | 19,911,406 | (267,861,722) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Share-based compensation | 644,654 | |||
Income from equity in subsidiaries and VIEs | 19,188,381 | 2,702,627 | (24,377,678) | 260,487,285 |
Changes in operating assets and liabilities: | ||||
Other current assets | (349,119) | (49,172) | 444,811 | 353,726 |
Other current liabilities | (699,330) | (98,499) | (294,130) | 9,212,858 |
Net cash provided by (used in) operating activities | (5,527,076) | (778,472) | (4,315,591) | 2,836,801 |
Cash flows from investing activities: | ||||
Collection of loan to subsidiaries | 79,696 | |||
Loan to subdiaries | (8,327,112) | (1,172,849) | ||
Proceeds from disposal of Non-Linear | 3,485,129 | |||
Net cash provided by (used in) investing activities | (8,327,112) | (1,172,849) | 3,485,129 | 79,696 |
Cash flows from financing activities: | ||||
Repurchase of shares | (3,174,100) | (4,462,990) | ||
Net cash used in financing activities | (3,174,100) | (4,462,990) | ||
Effect of exchange rate changes | 24,200 | 3,408 | 170,292 | (371,727) |
Net decrease in cash and cash equivalents | (13,829,988) | (1,947,913) | (3,834,270) | (1,918,220) |
Cash and cash equivalents — beginning of year | 13,829,761 | 1,947,881 | 17,664,031 | 19,582,251 |
Cash and cash equivalents — end of year | ¥ (227) | $ (32) | ¥ 13,829,761 | ¥ 17,664,031 |
Additional Financial Informat_6
Additional Financial Information of Parent Company - Schedule I Notes (Details) | Dec. 31, 2023 |
Condensed Financial Statements Captions [Line Items] | |
Foreign Currency Exchange Rate, Translation | 7.0999 |
Parent Company | |
Condensed Financial Statements Captions [Line Items] | |
Foreign Currency Exchange Rate, Translation | 7.0999 |