Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2021shares | |
Document and Entity Information | |
Entity Registrant Name | Xiaobai Maimai Inc. |
Entity Central Index Key | 0001702318 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2021 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | No |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 48,850,574 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 15,128,719 | $ 6,668,104 |
Accounts receivable, net | 28,362 | 1,884 |
Loans receivable, net - current | 5,488,045 | 12,626,200 |
Prepayments and other assets | 604,524 | 426,137 |
Other receivable - current | 8,872,838 | 23,609,338 |
Current assets of discontinued operations | 8,686,507 | |
TOTAL CURRENT ASSETS | 30,122,488 | 52,018,170 |
Loans receivable, net - non-current | 14,070,741 | |
Long-term investments, net | 1,600,000 | |
Property, equipment and software, net | 66,887 | 92,832 |
Right-of-use assets | 0 | 670,738 |
Other receivable - non-current | 1,496,121 | 8,237,346 |
Non-current assets of discontinued operations | 3,786,332 | |
TOTAL ASSETS | 31,685,496 | 80,476,159 |
CURRENT LIABILITIES: | ||
Accrued expenses and other current liabilities | 1,142,507 | 1,149,599 |
Taxes payable (receivable) | 302,682 | (43,361) |
Lease liabilities - current | 740,752 | |
Amount due to related parties | 2,968,782 | 2,093,684 |
Current liabilities of discontinued operations | 8,421,098 | |
Note payable - current | 10,000,000 | |
TOTAL CURRENT LIABILITIES | 14,413,971 | 12,361,772 |
Note payable- non-current | 20,000,000 | |
Lease liabilities - non-current | 13,498 | |
TOTAL LIABILITIES | 14,413,971 | 32,375,270 |
COMMITMENTS AND CONTINGENCIES (Note 23) | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized, 50,016,457 and 49,984,223 shares issued, 48,850,574 and 48,818,340 shares outstanding as of March 31, 2021 and 2020, respectively) | 5,002 | 4,999 |
Additional paid-in capital | 60,615,048 | 60,559,583 |
Treasury stock (1,165,883 shares as of March 31, 2021 and 2020, respectively) | (3,988,370) | (3,988,370) |
Deficit | (36,256,612) | (1,429,623) |
Accumulated other comprehensive loss | (3,103,543) | (7,045,700) |
TOTAL SHAREHOLDERS' EQUITY | 17,271,525 | 48,100,889 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 31,685,496 | $ 80,476,159 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Ordinary shares, par value (in US dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued (in shares) | 50,016,457 | 49,984,223 |
Ordinary shares, shares outstanding (in shares) | 48,850,574 | 48,818,340 |
Treasury stock (in shares) | 1,165,883 | 1,165,883 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
REVENUES | |||
Tax and surcharges | $ (17,567) | $ (44,898) | $ (42,510) |
Net Revenues | 1,754,935 | 6,914,474 | 3,695,217 |
OPERATING EXPENSE | |||
Service and development | 544,572 | 1,032,562 | |
Sales and marketing | 1,087,009 | 1,462,798 | 1,167,469 |
General and administrative | 27,217,613 | 20,488,796 | 3,131,550 |
Impairment charge on long-term investments | 1,600,000 | 29,189,836 | |
Finance cost | 2,154,621 | 2,498,706 | |
Share-based compensation | 55,468 | 347,466 | 6,585,386 |
Total Operating Expenses | 32,659,283 | 55,020,164 | 10,884,405 |
LOSS FROM CONTINUING OPERATIONS | (30,904,348) | (48,105,690) | (7,189,188) |
OTHER INCOME (EXPENSE) | |||
Other income | 100,067 | 1,239,705 | 386,415 |
Other expense | (264,985) | (7,545) | (5,265) |
Total Other Income (Expense), net | (164,918) | 1,232,160 | 381,150 |
(LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (31,069,266) | (46,873,530) | (6,808,038) |
PROVISION FOR INCOME TAXES | 482,976 | 489,955 | 807,710 |
NET (LOSS) FROM CONTINUING OPERATIONS | (31,552,242) | (47,363,485) | (7,615,748) |
Net (loss) income from discontinued operations, net of income taxes | (6,439,549) | (23,834,894) | 13,148,329 |
Gain from disposal of discontinued operations, net of income taxes | 3,164,802 | ||
Total loss from discontinued operations | (3,274,747) | (23,834,894) | 13,148,329 |
NET (LOSS) INCOME | (34,826,989) | (71,198,379) | 5,532,581 |
OTHER COMPREHENSIVE (LOSS) INCOME | |||
Foreign currency translation adjustment | 3,942,157 | (5,288,742) | (6,136,187) |
COMPREHENSIVE LOSS | $ (30,884,832) | $ (76,487,121) | $ (603,606) |
Net (loss) per share | |||
Continuing operations - Basic (in dollars per share) | $ (0.64) | $ (0.97) | $ (0.16) |
Continuing operations - Diluted (in dollars per share) | (0.64) | (0.97) | (0.14) |
Discontinued operations - Basic (in dollars per share) | (0.07) | (0.49) | 0.27 |
Discontinued operations - Diluted (in dollars per share) | (0.07) | (0.49) | 0.25 |
Basic (in dollars per share) | (0.71) | (1.46) | 0.11 |
Diluted (in dollars per share) | $ (0.71) | $ (1.46) | $ 0.10 |
Weighted average shares | |||
Basic (in shares) | 48,837,977 | 48,757,199 | 48,693,162 |
Diluted (in shares) | 48,837,977 | 48,757,199 | 52,912,826 |
Commission service | |||
REVENUES | |||
REVENUES | $ 82,054 | ||
Recommendation service and other | |||
REVENUES | |||
REVENUES | $ 3,916,276 | $ 184,968 | |
Interest income | |||
REVENUES | |||
REVENUES | $ 1,690,448 | $ 3,043,096 | $ 3,552,759 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common stock | Additional Paid-in capital | Treasury stock | Retained Earnings (Deficit) | Accumulated Other Comprehensive (Loss) income | Total |
Balance at the beginning of the year at Mar. 31, 2018 | $ 4,796 | $ 58,417,971 | $ 77,430,759 | $ 4,379,229 | $ 140,232,755 | |
Balance at the beginning of the year (in shares) at Mar. 31, 2018 | 47,958,550 | |||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
Share-based compensation | 6,585,386 | 6,585,386 | ||||
Exercise of share options | $ 113 | 1,156,510 | 1,156,623 | |||
Exercise of share options (in shares) | 1,127,853 | |||||
Exercise of RSU | $ 54 | (54) | ||||
Exercise of RSU (in shares) | 538,900 | |||||
Dividends to shareholders | (6,352,948) | (13,194,584) | (19,547,532) | |||
Repurchase of ordinary shares | $ (1,320,468) | (1,320,468) | ||||
Repurchase of ordinary shares (in shares) | (421,220) | |||||
Net (loss) income | 5,532,581 | 5,532,581 | ||||
Foreign currency translation adjustment | (6,136,187) | (6,136,187) | ||||
Balance at the end of the year at Mar. 31, 2019 | $ 4,963 | 59,806,865 | $ (1,320,468) | 69,768,756 | (1,756,958) | 126,503,158 |
Balance at the end of the year (in shares) at Mar. 31, 2019 | 49,625,303 | (421,220) | ||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
Share-based compensation | 347,466 | 347,466 | ||||
Exercise of share options | $ 32 | 281,585 | 281,617 | |||
Exercise of share options (in shares) | 320,020 | |||||
Exercise of RSU | $ 4 | (4) | ||||
Exercise of RSU (in shares) | 38,900 | |||||
Repurchase of ordinary shares | $ (2,667,902) | (2,667,902) | ||||
Repurchase of ordinary shares (in shares) | (744,663) | |||||
Net (loss) income | (71,198,379) | (71,198,379) | ||||
Shareholder's contribution | 123,671 | 123,671 | ||||
Foreign currency translation adjustment | (5,288,742) | (5,288,742) | ||||
Balance at the end of the year at Mar. 31, 2020 | $ 4,999 | 60,559,583 | $ (3,988,370) | (1,429,623) | (7,045,700) | $ 48,100,889 |
Balance at the end of the year (in shares) at Mar. 31, 2020 | 49,984,223 | (1,165,883) | 48,818,340 | |||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
Share-based compensation | 55,468 | $ 55,468 | ||||
Exercise of RSU | $ 3 | (3) | ||||
Exercise of RSU (in shares) | 32,234 | |||||
Net (loss) income | (34,826,989) | (34,826,989) | ||||
Foreign currency translation adjustment | 3,942,157 | 3,942,157 | ||||
Balance at the end of the year at Mar. 31, 2021 | $ 5,002 | $ 60,615,048 | $ (3,988,370) | $ (36,256,612) | $ (3,103,543) | $ 17,271,525 |
Balance at the end of the year (in shares) at Mar. 31, 2021 | 50,016,457 | (1,165,883) | 48,850,574 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) from continuing operations | $ (31,552,242) | $ (47,363,485) | $ (7,615,748) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Gain from disposal of discontinued operations | (3,164,802) | ||
Depreciation and amortization | 15,161 | 120,520 | 17,233 |
Loss on disposal of property, equipment, and software | 17,137 | 15,993 | 4,613 |
Share-based compensation | 55,468 | 347,466 | 6,585,386 |
Allowance for uncollectible loans receivable | 22,159,416 | 14,225,449 | 1,084,225 |
Allowance for accounts receivable and contract assets | 63,849 | ||
Impairment on long-term investments | 1,600,000 | 29,189,836 | |
Changes in operating assets and liabilities: | |||
Accounts receivable and contract assets | (25,427) | (65,765) | |
Prepayments and other assets | (112,562) | 109,106 | (351,900) |
Other receivable | 23,195,854 | (32,265,179) | |
Deferred tax assets/liabilities | 3,308,297 | (46,261) | |
Interest receivable | 519,601 | ||
Right-of-use assets | 700,148 | (984,818) | |
Accounts payable, accrued expenses and other current liabilities | (82,096) | (176,600) | 732,225 |
Interest payments on unsecured senior notes and short-term bank loan | (2,114,388) | (2,413,014) | |
Taxes payable | 336,883 | (334,234) | 192,274 |
Lease liabilities | (787,322) | 753,622 | |
Net cash provided by (used in) continuing operations | 10,241,228 | (35,468,957) | 1,121,648 |
Net (used in) discontinued operations | (182,758) | (22,809,777) | (2,852,723) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 10,058,470 | (58,278,734) | (1,731,075) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash paid for loan originations | (1,596,609) | (123,471,487) | |
Cash received from loan repayments | 407,419 | 33,759,916 | 72,868,460 |
Purchase of long-term investments | (14,594,918) | (16,500,465) | |
Proceeds from disposal of property, equipment and software | 7,815 | 5,901 | |
Acquisitions of property, equipment and software | (200,360) | (7,590) | |
Net cash provided by (used in) continuing operations | 407,419 | 17,375,844 | (67,105,181) |
Net cash (used in) discontinued operations | (408,081) | (4,600,481) | (1,001,376) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (662) | 12,775,363 | (68,106,557) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from (repayments to) related parties | 925,837 | (6,653,236) | 51,419,093 |
Proceeds from exercise of share options | 5 | 281,617 | 1,156,623 |
Proceeds from issuance of unsecured note | 20,000,000 | ||
Cash received from third party as deposit | 710,429 | ||
Capital contributions by shareholders | 123,671 | ||
Dividends paid to shareholders | (19,547,532) | ||
Repurchase of ordinary shares | (2,667,902) | (1,320,468) | |
Repayment from subsidiaries, VIEs and VIE's subsidiaries | (10,000,000) | ||
Payments for offering cost | (318,000) | ||
Net cash provided by (used in) continuing operations | (9,074,158) | (8,205,421) | 51,389,716 |
Net cash provided by (used in) discontinued operations | 36,935 | 6,653,236 | (51,419,093) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (9,037,223) | (1,552,185) | (29,377) |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | 3,182,926 | 608,636 | (5,383,330) |
NET (DECREASE) INCREASE IN CASH | 4,203,511 | (46,446,920) | (75,250,339) |
CASH AND CASH EQUIVALENTS - beginning of year | 10,925,208 | 57,372,128 | 132,622,467 |
CASH AND CASH EQUIVALENTS - end of year | 15,128,719 | 10,925,208 | 57,372,128 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Cash paid for income tax | 9,764 | 3,209,378 | 12,248,230 |
Cash paid for interest | $ 2,114,388 | 2,413,014 | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | |||
Purchase of long term investments included in consideration payable | $ 14,289,371 | ||
Accrued lease liabilities | $ 791,537 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
CASH AND CASH EQUIVALENTS - end of year | $ 15,128,719 | $ 10,925,208 | $ 57,372,128 |
Less: cash and cash equivalents, restricted cash of discontinued operations at end of period | 4,257,104 | 21,714,782 | |
Cash and cash equivalents, restricted cash of continuing operations, at end of period | $ 15,128,719 | $ 6,668,104 | $ 35,657,346 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 12 Months Ended |
Mar. 31, 2021 | |
BUSINESS DESCRIPTION | |
BUSINESS DESCRIPTION | Note 1 – BUSINESS DESCRIPTION Organization and description of business Xiaobai Maimai Inc., formerly known as Hexindai Inc., is a limited company incorporated under the laws of the Cayman Islands on April 25, 2016. Xiaobai Maimai Inc., its subsidiaries, and consolidated variable interest entities ("VIEs") ( collectively the “Company”), previously operated an online Peer to Peer ("P2P") marketplace business and micro-lending business in the People's Republic of China (the "PRC"). Since May 2019, the Company has ceased to issue new loans through its micro-lending business and since October 2019, the Company has ceased to conduct its P2P business. In May 2020, the Company launched its social e-commerce platform to offer high-quality and affordable branded products through collaboration with online and offline merchants. On December 16, 2020, the shareholders approved the Company’s plan to change its name to "Xiaobai Maimai Inc." On December 30, 2020, the Company completed the disposition transaction of its P2P business. As of March 31, 2021, the Company’s principal subsidiaries and consolidated VIEs are as follows: Date of incorporation / Place of Percentage of acquisition incorporation legal ownership Principal activities Wholly owned subsidiaries Hexindai Hong Kong Limited (“HK Hexindai”) May 17, 2016 Hong Kong 100% Investment holding Beijing Hexin Yongheng Technology Development Co., Ltd ( Wholly Owned Foreign Enterprise ,“WOFE”) August 8, 2016 PRC 100% Provision of consultancy and information technology (“IT”) support Tianjin Haohongyuan Technology Co., Ltd (“Tianjin Haohongyuan”) May 25, 2018 PRC 100% Provision of consultancy and IT support HX Asia Investment Limited June 25, 2018 BVI 100% Investment holding HX China Investment Limited January 16, 2019 BVI 100% Investment holding Hexin Investment Private Limited July 15, 2020 Singapore 100% Investment holding VIEs Wusu Hexin Yongheng Trading Co., Ltd (“Wusu Company) August 28, 2017 PRC Consolidated VIE Trading branded products and product promotion Hexin Digital Technology Co., Ltd.(“Hexin Digital “) August 1, 2019 PRC Consolidated VIE Provision of consultancy and IT support Beijing Hexin Jiuding Technology Co., Ltd. (“ Hexin Jiuding ”) January 1, 2021, PRC Consolidated VIE Provision of consultancy and IT support Recent developments On January 1, 2021, the Company obtained control and became the primary beneficiary of Beijing Hexin Jiuding Technology Co ., Ltd. (“Hexin Jiuding”), by entering into a serie s of contractual arrangements with Hexin Jiuding and Hexin Fengze Asset Management (Beij ing) Co., Ltd., (“Hexin Fengze”), the shareh older of Hexin Jiuding and a wholly-owned subsidiary of Hexin Jinke Group Co., Ltd. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Mar. 31, 2021 | |
GOING CONCERN | |
GOING CONCERN | NOTE 2 - GOING CONCERN As indicated in the accompanying consolidated financial statements, the Company had a net loss of approximately $34.8 million for the year ended March 31, 2021 and approximately $71.2 million for the year ended March 31, 2020. Management of the Company has considered whether there is substantial doubt about its ability to continue as a going concern due to the Company’s business transformation from the P2P business to the social E-commerce business and volatile market conditions arising from the COVID-19 pandemic, and evaluated its available cash balance against its working capital requirements over the next twelve months. While management cannot accurately predict the prospects and regulatory environment of the social E-commerce industry and the full impact of COVID-19 on the Company’s business in fiscal 2022, however, based on its latest cash flows projection, management believes that the Company should be able to generate sufficient cash flows from operations to meet its working capital requirements for fiscal 2022, and that its capital resources are currently sufficient to maintain its business operations for the next twelve months. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and/or classification of the recorded asset amounts and/or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. Certain prior year balances in the consolidated statements of operations and comprehensive (loss) income and cash flows have been reclassified to the current year’s presentation. Basis of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, its consolidated VIEs and VIE’s subsidiaries for which the Company is the primary beneficiary. All inter-company transactions and balances have been eliminated upon consolidation. Due to the disposal of the P2P business, which represented a strategic shift and had a major effect on the Company’s results of operations, revenues, costs and expenses related to the P2P Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. Assets and liabilities of the P2P business were reclassified separately from other assets and liabilities of the Company on the consolidated balance sheets. Refer to Notes 1 and Note 4. Consolidated VIEs VIE arrangements Foreign ownership of internet-based businesses, including distribution of online information (such as an online marketplace connecting borrowers and investors), is subject to restrictions under current PRC laws and regulations. The Company’s holding company, Xiaobai Maimai Inc., is a Cayman Islands company and its WOFE (a PRC subsidiary) and Tianjin Haohongyuan are considered foreign invested enterprises. To comply with these regulations, the Company conducts the majority of its business activities in the PRC through its VIEs VIEs hold the requisite licenses and permits necessary to conduct the Company's online marketplace connecting borrowers and investors. The WOFE has entered into the following contractual arrangements with the shareholders of the VIEs that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. The Company is fully and exclusively responsible for the management of the VIEs, assumes all of risk of losses of the VIEs and has the exclusive right to exercise all voting rights of the VIEs' shareholders. Therefore, in accordance with Accounting Standards Codification (“ ASC”) 810 Business Consolidation, the Company is considered the primary beneficiary of the VIEs and has consolidated the VIEs' assets, liabilities, results of operations, and cash flows in the accompanying consolidated financial statements. Exclusive Business Cooperation Agreements The Exclusive Business Cooperation Agreements enable the WOFE to receive substantially all of the assets and business of the VIEs in the PRC. Under these Agreements, the WOFE has the exclusive right to provide the VIEs with comprehensive technical support, consulting services and other services during the term of these Agreements, including but not limited to software licensing; development, maintenance and update of software, network systems, hardware and database; technical support and training for employees; consultancy on technology and market information; business management consultation; marketing and promotion services, etc. The WOFE has the right to determine the fees associated with the services it provides based on the technical difficulty and complexity of the services, the actual labor costs it incurs for providing the services and some other factors during the relevant period. This Agreements remain effective unless otherwise terminated in writing by WOFE. Equity Interest Pledge Agreements Pursuant to the Equity Interest Pledge Agreements, each Shareholder of the VIEs agreed to pledge their equity interest in the VIEs to the WOFE to secure the performance of the VIEs' obligations under the Exclusive Business Cooperation Agreements and any such agreements to be entered into in the future. Shareholders of the VIEs agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on their equity interests in the VIEs without the prior written consent of the WOFE. The Pledges became effective on such date when the pledge of the Equity Interest contemplated herein were registered with the relevant administration for industry and commerce (the "AIC") and remain effective until all contract obligations have been fully performed and all secured indebtedness has been fully paid. Exclusive Option Agreements Pursuant to the Exclusive Option Agreements, each of the Shareholders of the VIE irrevocably grant the WOFE an irrevocable and exclusive right to purchase, or designate one or more persons (including individuals, corporations, partnerships, partners, enterprises, trusts or non-corporate organizations) to purchase the equity interests in the VIEs then held by such Shareholder of the VIEs once or at multiple times at any time in part or in whole at the WOFE's sole and absolute discretion to the extent permitted by Chinese laws at the price of RMB 1 or at the price of the minimum amount of consideration permitted by the applicable PRC law at the time when such purchase occurs. These three Agreements remain effective until all equity interests held by the shareholders of the VIEs in the VIEs have been transferred or assigned to the WOFE and/or its designees. Loan Agreements Pursuant to the three Loan Agreements, the WOFE agreed to lend each of the Shareholders of VIEs a loan only to subscribe to the registered capital of the VIEs. The repayment of the loan shall be made by permitting the WOFE to execute its exclusive right to purchase shares from the shareholders of the VIEs under the Exclusive Option Agreement as the repayment is equivalent to the consideration of the purchased shares. The term of these loans is 10 years, which may be extended upon mutual written consent of all parties. Power of Attorney Each Shareholder of the VIEs, executed a Power of Attorney agreement with the WOFE and the VIEs, whereby Shareholders of the VIEs irrevocably appoint and constitute the WOFE as their attorney-in-fact to exercise on the shareholders' behalf any and all rights that Shareholders of the VIEs have in respect of their equity interests in the VIEs. These three Power of Attorney documents remain irrevocable and continuously effective and valid as long as the original shareholders of the VIEs remain as the Shareholders of the VIEs. Risks in relation to the VIE structure The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with the PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company's ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of the PRC laws and regulations, the PRC government could: · revoke the business and operating licenses of the Company's PRC subsidiary and VIEs; · discontinue or restrict the operations of any related-party transactions between the Company's PRC subsidiary and VIEs; · limit the Company's business expansion in the PRC by way of entering into contractual arrangements; · impose fines or other requirements with which the Company's PRC subsidiary and VIEs may not be able to comply; · require the Company or the Company's PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; and/or · restrict or prohibit the Company's use of the proceeds of the additional public offering to finance the Company's business and operations in the PRC. The Company's ability to conduct its Online Marketplace business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIEs. The interests of the shareholders of VIEs may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Company cannot assure that when conflicts of interest arise, shareholders of the VIEs will act in the best interests of the Company or that conflicts of interests will be resolved in the Company's favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest the shareholders of the VIEs may encounter in their capacity as beneficial owners and directors of the VIEs, on the one hand, and as beneficial owners and directors of the Company, on the other hand. The Company believes the shareholders of VIEs will not act contrary to any of the contractual arrangements and the exclusive option agreements provide the Company with a mechanism to remove the current shareholders of the VIEs should they act to the detriment of the Company. The Company relies on certain current shareholders of the VIEs to fulfill their fiduciary duties and abide by laws of the PRC and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and the shareholders of the VIEs, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. The following financial statement amounts and balances of the consolidated VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. As of As of March 31, 2021 March 31, 2020 USD USD Current Assets: Cash and cash equivalents 10,246,074 1,119,651 Accounts receivable and contract assets, net 28,362 1,884 Loans receivable, net - current 5,488,045 12,626,200 Prepayments and other assets 381,297 303,710 Other receivable - current 8,872,838 23,609,338 Amounts due from related parties 13,936,237 318,811 Current assets of discontinued operations — 8,686,507 Total Current Assets 38,952,853 46,666,101 Loans receivable, net - non-current, — 14,070,741 Property, equipment and software, net 64,268 92,832 Right-of-use assets — 670,738 Other receivable - non-current 1,496,121 8,237,346 Non-current assets of discontinued operations — 3,786,332 Total Assets 40,513,242 73,524,090 Current Liabilities Accrued expenses and other current liabilities 246,210 252,842 Taxes payable (deductible) 363,484 (47,920) Lease liabilities - current — 740,753 Current liabilities of discontinued operations — 8,421,098 Total Current Liabilities 609,694 9,366,773 Lease liabilities - non-current — 13,498 Total Liabilities 609,694 9,380,271 Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Net revenues 1,759,941 5,944,541 3,510,252 Net (loss) income (24,258,182) (12,532,634) 1,420,897 Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Net cash provided by (used in) operating activities 21,401,699 (65,068,631) 721,269 Net cash provided by (used in) investing activities 407,419 46,074,236 (51,541,988) Net cash provided by (used in) financing activities (13,127,699) 123,671 — Uses of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Company's consolidated financial statements include estimates and judgments applied in allocation of revenue with various performance obligations, allowance for accounts receivable and contract assets, impairment on long-term investments, valuation allowance for deferred tax assets, valuation of share-based compensation and allowance for loans receivable. Fair value of financial instruments Fair value is 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 Company considers the principal or most advantageous market in which it would transact and the market-based risk measurement or assumptions that market participants would use when pricing the asset or liability. The Company follows the provisions of Financial Accounting Standards Board ("FASB"), Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, receivables, prepayments and other assets, loan principal and interest receivable, approximate their fair value based on the short-term maturity of these instruments. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended March 31, 2021, 2020 and 2019. The Company’s long-term investments consist of equity securities and available-for-sale investments. For long-term investments without readily determinable fair value, the Company is not able to estimate fair value, hence, the Company uses the cost minus impairment method as alternative. Discontinued Operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Included in the consolidated statements of operations and comprehensive (loss) income, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. Revenue recognition In May 2020, the Company launched its social e-commerce platform and built collaboration with domestic mainstream E-commerce marketplaces. The Company provides recommendation services by referring certain interested users to those marketplaces for high-quality and affordable branded products . Prior to business transformation, the Company through its P2P business offered online consumer lending-related service in fiscal year 2020, which was discontinued in fiscal year 2021 and disposed on December 30, 2020. The Company presents value added taxes (“VAT”) as a reduction of revenues. Revenues generated are accounted under Accounting Standards Update (ASU) 2014-09, “Revenue from contracts with Customers” (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation Online marketplace services Commission revenue: The commission services revenue primarily consists of commission fees charged to the online E-commerce marketplace for recommending users to purchase on their marketplaces, where the Company generally is acting as an agent and its performance obligation is to provide recommendation services for purchasing specified goods or services by those third-party sellers, is not responsible for fulfilling the promise to provide the specified goods or services, and does not have the ability to control the related shipping services when utilized by the third-party sellers. Upon successful sales, the Company will charge the online E-commerce companies a negotiated amount or a fixed rate commission fee based on the sales amount. Commission services revenues are recognized on a net basis at the point of receipt of products, net of a return allowance and incentives to consumers or channels. In order to promote its online marketplace and attract more registered consumers, the Company at its own discretion offers incentives to consumers. Consumers are not customers of the Company, therefore incentives offered to consumers are not considered payments to customers. Such incentives offered to consumers were as a reward for purchasing by themselves or their sharing through our platform. Incentives provided to consumers are specific to any merchant and are recognized as a reduction of commission service revenue. For the year ended March 31, 2021, the total amount of incentives was US$159,996. · Recommendation service The Company started to provide recommendation services by referring certain borrowers to Funding Partners since July 2019. Such services primarily include referral through the Company’s marketplace that directs users to third party financial institutions. The Company received a referral fee from the third-party financial institutions and such revenue was recognized at the point that the recommendation services are performed and the related funds are drawdown by borrowers. For the years ended March 31, 2021 and 2020, the Company earned nil and US$3,754,738 recommendation service revenue from its partnership with a financial services provider in China, or the Funding Partner. · Interest income Started in August 2017, the Company lent funds to borrowers up to their approved credit through its consolidated VIE , and since May 2019, the Company has ceased to issue new loans through its microlending business . Interest income on loans receivable is recognized monthly based on the contractual interest rates of the loan. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. When a loan is discontinued from interest accrual, the Company stops accruing interest and reverses all accrued but unpaid interest as of such date. Interest income from continuing operations was US$1,690,448, US$3,043,096, and US$3,552,759 for the years ended March 31, 2021, 2020 and 2019, respectively, which was included as net revenues in the accompanying consolidated statements of operations and comprehensive (loss) income. · Other revenue Other revenue includes one-time fees for loan transfers, other general fees charged to borrowers and sales, which are recognized when the related performance is completed. Interest income and recommendation service revenue was presented as revenue from continuing operation as the Company currently had no intention to sell or plan to find a buyer for the disposal of such business and might continue to carry out them in the foreseeable future when the economic condition improved and the pandemic controlled. · Disaggregation of revenue All of the Company’s revenue for the years ended March 31, 2021, 2020 and 2019 were generated from the PRC. The following table illustrates the disaggregation of revenue: Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Revenue Commission service 82,054 — — Recommendation service — 3,754,738 — Interest income 1,690,448 3,043,096 3,552,759 Other — 161,538 184,968 Total revenues 1,772,502 6,959,372 3,737,727 Tax and surcharges (17,567) (44,898) (42,510) Net Revenues 1,754,935 6,914,474 3,695,217 Cash and cash equivalents Cash and cash equivalents represent cash on hand, unrestricted demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. Accounts receivable and allowance for uncollectible accounts Accounts receivable are mainly receivables from online E-commerce marketplaces and recommendation services, which are stated at the historical carrying amount net of allowance for uncollectible accounts. The Company establishes an allowance for uncollectible accounts receivable based on estimates, historical experience and other factors surrounding the credit risk of specific customers. Uncollectible accounts receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Company has determined that is not probable for the balance to be collected. Beginning on April 1, 2020, the Company evaluates its accounts receivable for expected credit losses on a regular basis. The Company maintains an estimated allowance for credit losses to reduce its accounts receivable to the amount that it believes will be collected. The Company uses the length of time a balance has been outstanding, the payment history, creditworthiness and financial conditions of the customers and industry trend as credit quality indicators to monitor the Company’s receivables within the scope of expected credit losses model and use these as a basis to develop the Company’s expected loss estimates. The Company adjusts the allowance percentage periodically when there are significant differences between estimated bad debts and actual bad debts. If there is strong evidence indicating that the accounts receivable is likely to be unrecoverable, the Company also makes a specific allowance in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts have been exhausted. As of March 31, 2021 and 2020, the allowance for uncollectible accounts receivable balance was US$67,864 and US$ 62,794 respectively. Loans receivable Since August 2017, the Company engaged in the micro-lending business and target borrowers in the PRC. Loans receivable represent loans originated by the Company, which is due from the qualified individual borrowers. For the years ended March 31, 2021 and 2020, the total amount of new loans the Company issued was nil and US$74,003. As of March 31, 2021 and 2020, the loans are terms ranging from 12 months to 36 months with annual interest charges from 6% to 8%. The Company has the intent and the ability to hold such loans for the foreseeable future or until maturity or payoff. Loans receivable are recorded at the historical carrying amount, net of allowance for uncollectible loans receivable. The Company evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the lives of loans on an individual basis based on the Company’s past experiences, the borrowers’ financial position, their financial performance, and their ability to continue to generate sufficient cash flows. A valuation allowance is established for the loans unable to collect. As of March 31, 2021 and 2020, the allowance for uncollectible loan receivable balance was US$39,172,141 and US$ 15,017,029 respectively. Non-accrual policies Loan principal and interest receivable are placed on non-accrual status when payments are 90 days past due contractually. When loan principal and interest receivable is placed on non-accrual status, interest accrual ceases. If the loan is non-accrual, the cost recovery method is used and cash collected is applied to first reduce the carrying value of the loan. Otherwise, interest income may be recognized to the extent cash is received. Loan principal and interest receivable may be returned to accrual status when all of the borrower’s delinquent balances of loan principal and interest have been settled and the borrower continues to perform in accordance with the loan terms. Charge-off policies Loan principal and interest receivable are generally charged-off when a settlement is reached for an amount that is less than the outstanding balance or when the Company has determined the balance is uncollectable. In accordance with ASC 310-10-35-41, the Company determines that any loans with outstanding balance that are 180 days past due are deemed uncollectable and thereof charged-off. For the year ended March 31, 2019, in order to align the Company’s charge-off policy with ASC 310-10-35-41 and industry practice, the Company revised its charge-off policy such that all loans that are 180 days past due are therefore deemed uncollectible and charged-off. Property, equipment and software, net Property, equipment and software acquired are stated at cost. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives: Useful life Office equipment 3-5 years Software 5 years The Company eliminates the cost and related accumulated depreciation and amortization of assets sold or otherwise retired from the accounts and includes any gains or losses from disposal of property, equipment, and software in other income. The Company charges maintenance, repairs, and minor renewals directly to expense as incurred; major additions and betterments to equipment are capitalized. Impairment of long‑lived assets The carrying value of the long-lived assets are reviewed for impairment, whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to future undiscounted net cash flows expected to be generated by the assets. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. No impairment loss was recognized for the years ended March 31, 2021, 2020 and 2019. Investment in equity securities The Company's investment in equity securities was mainly comprised of equity investments in privately held companies. Upon adoption of ASU 2016-01 on April 1, 2018, the Company 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 operations. The Company also makes a qualitative assessment at the end of 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 consolidated statements of operations and comprehensive (loss) income. Advertising and promotion expenses The Company recognizes its advertising and promotion expenses as sales and marketing expense. Advertising expenses represent expenses for placing advertisements on television, radio and in newspapers, as well as on Internet websites and search engines. Advertising and promotion cost are expensed as incurred. For the years ended March 31, 2021, 2020 and 2019, the advertising and promotion expense was US$176,193, US$736,522, and US$1,080,905, respectively. Research and development costs The Company recognizes its research and development costs as service and development expense. Research and development costs are mainly labor costs of the research and development department. For the years ended March 31, 2021, 2020 and 2019, research and development expense was US$ 441,405, US$117,942 and US$ nil, respectively, and included in service and development expense. Service and development expense Service and development expense consists primarily of research and development costs. Including costs related to salaries, benefits and service costs directly relating to originating social e-commerce business. These expenses relate to credit assessment, maintenance and upgrading of our proprietary technology and risk management systems, live customer support, and third-party payment agent fees for fund management, payment, settlement and clearing services. Lease Upon the adoption of FASB ASC 842 on April 1, 2019 using the modified retrospective method, the Company determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities, in the Company’s consolidated balance sheets. The Company does not have any finance leases as of the adoption date or March 31, 2021. ROU represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. As of March 31, 2021, the Company has terminated all existing leases and the balance of ROU assets and lease liabilities are nil as of March 31, 2021. No penalties were charged for the termination. Share‑based compensation Under the Amended and Restated 2016 Equity Incentive Plan, the Company grants share options to the Company's selected employees, and directors. Awards granted to employees with service conditions attached are measured at the fair value on the grant date and are recognized as an expense using straight-line method, net of estimated forfeitures, over the requisite service period, which is generally the vesting period. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized throu |
DISCONTINUED OPERATION
DISCONTINUED OPERATION | 12 Months Ended |
Mar. 31, 2021 | |
DISCONTINUED OPERATION | |
DISCONTINUED OPERATION | NOTE 4 – DISCONTINUED OPERATION On December 16, 2020, Beijing Hexin Yongheng Technology Development Co., Ltd. (“Hexin Yongheng”), a wholly-owned subsidiary of the Company, Kuaishangche Automobile Leasing Co., Ltd. (“Kuaishangche”), a company not directly associated with the Company, Hexin E-Commerce Company Limited (“Hexin E-Commerce”), and individual shareholders of Hexin E-Commerce entered into an assignment and assumption agreement (the “Agreement”). Pursuant to the Agreement, Hexin Yongheng agreed to assign and transfer to Kuaishangche the control over Hexin E-Commerce, in exchange for cash consideration of RMB 5 million (US$726,781) (the “Disposition”). Upon the closing of the Disposition, Kuaishangche will become the primary beneficiary of and have control of Hexin E-Commerce, and as a result, assume all assets and liabilities of Hexin E-Commerce and subsidiaries owned or controlled by Hexin E-Commerce, excluding any rights, titles, interests or claims that Hexin E-Commerce may have in Wusu Hexin Yongheng Commercial and Trading Co., Ltd. (“Wusu Company”), shall remain as a consolidated variable interest entity of the Company. As a result of the Disposition, the Company will cease to conduct its P2P business and focus on developing and investing resources into its social e-commerce platform, Xaobai Maimai. The discontinued operation represents a strategic shift that has a major effect on the Company’s operations and financial results, which trigger discontinued operations accounting in accordance with FASB ASC 205-20-45. The assets and liabilities related to the discontinued operations are classified as assets/liabilities of discontinued operations as of March 31, 2021 and 2020, while results of operations related to the discontinued operations for the years ended March 31, 2021, 2020 and 2019, were reported as income (loss) from discontinued operations. The results of discontinued operations for years ended March 31, 2021, 2020 and 2019 are as follows: For the years ended March 31, 2021 2020 2019 USD USD USD Net Revenues 545,718 4,520,585 57,635,286 Operating costs and development 8,082,165 24,942,630 45,348,331 (Loss) income from discontinued operations (7,536,447) (20,422,045) 12,286,955 Other income (expense), net 1,097,265 365,927 1,926,334 (Loss) income before tax (6,439,182) (20,056,118) 14,213,289 Income tax provision 367 3,778,776 1,064,960 Net (loss) income from discontinued operations, net of tax (6,439,549) (23,834,894) 13,148,329 Gain on sale of discontinued operations, net of taxes 3,164,802 — — Net loss from disposition subsidiaries (3,274,747) (23,834,894) 13,148,329 Assets and liabilities of the discontinued operations are as follows: March 31, 2020 USD Cash and cash equivalents 4,257,104 Prepayments and other assets 771,431 Loan receivables-current, net of allowance 1,564,288 Amount due from related parties 2,093,684 Total Current Assets of Discontinued Operations 8,686,507 Loans receivable- non-current, net of allowance 2,908,597 Property, equipment and software, net 797,975 Right-of-use assets 79,760 Total Non-Current Assets of Discontinued Operations 3,786,332 Total Assets of Discontinued Operations 12,472,839 Accrued expenses and other current liabilities 1,768,816 Deferred revenue-current 220,910 Lease liabilities 37,287 Taxes payable 6,394,085 Total liabilities of Discontinued Operations 8,421,098 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Mar. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | Note 5 – ACCOUNTS RECEIVABLE, NET As of As of March 31, 2021 March 31, 2020 USD USD Accounts receivable 96,226 64,678 Allowance for uncollectible accounts receivable (67,864) (62,794) Accounts receivable, net 28,362 1,884 |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Mar. 31, 2021 | |
LOANS RECEIVABLE, NET | |
LOANS RECEIVABLE, NET | Note 6 – LOANS RECEIVABLE, NET As of As of March 31, 2021 March 31, 2020 USD USD Loans receivable 44,660,186 41,713,970 Allowance for uncollectible loans receivable (39,172,141) (15,017,029) Loans receivable, net 5,488,045 26,696,941 Loans receivable, net – current 5,488,045 12,626,200 Loans receivable, net – non-current — 14,070,741 Movement of allowance for uncollectible loans receivable during the years ended March 31, 2021 and 2020 is as follows: Year ended Year ended March 31, 2021 March 31, 2020 USD USD Balance at beginning of the year 15,017,029 1,083,385 Provision for allowance of uncollectible loans receivable 22,159,416 14,225,450 Foreign currency translation adjustments 1,995,696 (291,806) Balance at end of the year 39,172,141 15,017,029 |
PREPAYMENTS AND OTHER ASSETS
PREPAYMENTS AND OTHER ASSETS | 12 Months Ended |
Mar. 31, 2021 | |
PREPAYMENTS AND OTHER ASSETS | |
PREPAYMENTS AND OTHER ASSETS | Note 7 – PREPAYMENTS AND OTHER ASSETS As of As of March 31, 2021 March 31, 2020 USD USD Rental and other deposits 252,394 230,073 Prepayments to suppliers and others 309,164 146,540 Interest receivable 11,746 25,317 Staff advances 31,220 24,207 Total prepayments and other assets 604,524 426,137 |
OTHER RECEIVABLE
OTHER RECEIVABLE | 12 Months Ended |
Mar. 31, 2021 | |
OTHER RECEIVABLE | |
OTHER RECEIVABLE | Note 8 – OTHER RECEIVABLE As of As of March 31, 2021 March 31, 2020 USD USD Other Receivable 10,368,959 31,846,684 Other receivable - current 8,872,838 23,609,338 Other receivable - non-current 1,496,121 8,237,346 To further diversify our business, in July 2019, Xiaobai Maimai entered into a business development agreement with a third-party vender named Beijing Jiuzheng Network Technology Co., Ltd for the purpose of expanding its loan recommendation service in the consumer financing market. Due to changes in market dynamics, both parties executed an amendment in November 2019 with the intention of establishing an e-commence online trading marketplace. In connection with the original agreement and subsequent amendment (the “Transactions”), a deposit of approximately US$30.9 million was paid to the counter party. The Transactions were reported to the Board afterwards in late November 2019. After reviewing the Transactions, the Board concluded that it is in the best interest for the Company to terminate the business cooperation with the vender in order to avoid significant expenditures and reduce uncertainties associated with the related business development. Meantime, an independent law firm was engaged by the Company’s Audit Committee to assess the independence of the counter party in the Transactions. The law firm’s assessment report concluded the counter party in the Transactions is not related to the Company. The Company therefore decided to terminate the agreement at the end of November 2019. Due to business disruption caused by COVID‑19 pandemic, the Company, through a series of negotiations, finally entered a termination agreement with the vender on April 8, 2020. Pursuant to the settlement agreement, the Company terminated the Transactions with the vender. For the deposit made by the Company, the vender agreed to refund approximately US$15.5 million by May 2020 and the remaining balance shall be refunded on monthly basis of approximately US$693,905 in next two years with an annual interest charge of 2%. The repayment by the counterparty is guaranteed by a licensed guarantee company in the PRC with registered capital of approximately US$142.9 million. Based on the above arrangement, as of March 31, 2021 and 2020, the Company included approximately US$8.9 million and US$23.6 million in the current portion of other receivable and approximately US$1.5 million and US$8.2 million in the long-term portion of other receivable of the Company’s consolidated balance sheet. The third-party vendor has refunded approximately $26.2 million (or approximately 76% of the Company’s deposit) by June 30, 2021. According to the repayment schedule as agreed by the parties, approximately US$6.75 million will be refunded by March 31, 2022, and approximately US$4.50 million will be refunded by May 2022. |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 12 Months Ended |
Mar. 31, 2021 | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | Note 9 – PROPERTY, EQUIPMENT AND SOFTWARE, NET As of As of March 31, 2021 March 31, 2020 Cost: USD USD Office equipment 131,967 103,345 Vehicle — 35,182 Total 131,967 138,527 Less: Accumulated depreciation (65,080) (45,695) Property, equipment and software, net 66,887 92,832 Depreciation and amortization expense on property, equipment and software for the years ended March 31, 2021, 2020 and 2019 were US$15,161, US$ 120,520, and US$ 17,233, respectively. |
LONG-TERM INVESTMENTS, NET
LONG-TERM INVESTMENTS, NET | 12 Months Ended |
Mar. 31, 2021 | |
LONG-TERM INVESTMENTS, NET | |
LONG-TERM INVESTMENTS, NET | Note 10 – LONG-TERM INVESTMENTS, NET As of As of March 31, 2021 March 31, 2020 USD USD Investments in equity security without readily determinable fair value Phoenix Intelligent Credit Group Ltd (“Phoenix Intelligent Credit”) (a) 29,189,836 29,189,836 Musketeer Group Inc. (“Musketeer”) (b) 1,600,000 1,600,000 30,789,836 30,789,836 Impairment on investments (30,789,836) (29,189,836) Long term investments, net — 1,600,000 (a) On January 8, 2019, the Company signed an agreement to acquire a 5.88% equity stake in Phoenix Intelligent Credit Group Ltd (“Phoenix Intelligent Credit”), a wholly owned subsidiary of Phoenix Financial Group Ltd (“Phoenix Finance”), which is unrelated to the Company, and operator of one of China’s leading peer-to-peer lending platforms, for a total consideration of approximately US$29 million (RMB 200 million). The acquisition was completed as of March 31, 2019 and the Company had an acquisition price payable to Phoenix Finance in the amount of US$14,289,371 as of March 31, 2019, which was fully paid in April 2019. Pursuant to the investment agreement, such investment is redeemable at the option of the Company if certain future performance condition cannot be met. The Company accounted the investment as investment in an equity security without readily determinable fair value. In light of the significant change in the regulatory environment in the PRC related to the peer-to-peer lending industry and the impact of COVID-19 on Phoenix Intelligent Credit, the Company recognized a full impairment of this investment as of March 31, 2021 and 2020. (b) On August 9, 2018, the Company acquired a 19.99% equity stake in Musketeer Group Inc. (“Musketeer”), an Indonesian online lending platform that offers consumption installment loans, for approximately US$1.6 million. The investment was accounted for using the cost method because the Company does not have any significant influence over Musketeer. Since Musketeer is a start-up company in its early stage, there was no readily determinable fair value. On August 14, 2019, Musketeer completed its registration for a peer-to-peer (P2P) lending platform with the Indonesian Financial Services Authority (OJK). In light of the significant changes of market conditions and the impact of COVID-19 in Indonesia, the Company recognized full impairment of this investment as of March 31,2021. For the year ended March 31, 2021 and 2020, the Company recognized impairment losses for the long-term investments of US$1,600,000 and $29,189,836, respectively. |
RIGHT OF USE LEASE ASSETS
RIGHT OF USE LEASE ASSETS | 12 Months Ended |
Mar. 31, 2021 | |
RIGHT OF USE LEASE ASSETS | |
RIGHT OF USE LEASE ASSETS | NOTE 11 – RIGHT OF USE LEASE ASSETS The Company had several operating leases for offices in the PRC. The related lease agreements do not contain any material residual value guarantees or material restrictive covenants. Effective April 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and the related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on deficit as of March 31, 2020. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. As of April 1, 2019, the Company recorded a ROU asset and lease liability of US$ 2,559,646. The Company’s operating leases primarily include leases for office space. The current portion of operating lease liabilities and the non-current portion of operating lease liabilities are presented on the consolidated balance sheets. Total lease expense amounted to US$398,709 and US$1,976,738 for the years ended March 31, 2021 and 2020, respectively. Total cash paid for operating leases amounted to US$398,709 and US$2,100,320 for the years ended March 31, 2021 and 2020, respectively. As the Company closed its P2P business, the leases were terminated. No penalties were charged for the termination. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Mar. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | Note 12 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of As of March 31, 2021 March 31, 2020 USD USD Accrued payroll and benefits 293,324 342,485 Professional fees and other accrued expenses 849,183 807,114 1,142,507 1,149,599 |
NOTE PAYABLE
NOTE PAYABLE | 12 Months Ended |
Mar. 31, 2021 | |
NOTE PAYABLE | |
NOTE PAYABLE | Note 13 – NOTE PAYABLE On March 29, 2019, the Company issued a senior unsecured note (the “Note”) to Majik Fund SPC, an exempted company managed by a subsidiary of Yunfeng Financial Group Limited (“Yunfeng Financial Group”), which is unrelated to the Company. The principal is US$20 million with a term of three-year term due in March 2022. The Note bears a fixed interest rate of 12.0% per annum, with interest payable semi-annually in arrears on June 30th and December 31st of each year, beginning in March 2019. According to the covenants in the Note, as long as any Note remains outstanding, the Company shall not consolidate with, merge or amalgamate into or dispose of or transfer all or a substantial part of its assets to any corporation or convey or transfer its properties and assets substantially to any person. On December 14 2020, for the purpose of disposal of our P2P business, the Company and Majik Fund SPC entered into an Amendment and Supplemental Agreement to the Note, pursuant to which the Company shall make a payment to the Noteholder of US$10,000,000 of principal together with all accrued but unpaid interest on the full outstanding amount, within 5 working days from the effective date of the Amendment and Supplemental Agreement. The Company made a payment of US$5,000,000 of the Principal on December 14, 2020 and a payment of US$5,000,000 of principal and US$513 , 333 of interest on December 15, 2020. As of March 31, 2021 and 2020, the note payable balance amounted to US$10 million and US$20 million, respectively. For the year ended March 31, 2021 and 2020, interest expense amounted to US$2.1 million and US$2.4 million, respectively. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Mar. 31, 2021 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | Note 14 – RELATED PARTY BALANCES AND TRANSACTIONS As part of our corporate restructurings prior to our disposal of Hexin E-Commerce in December 2020, Mr. Ming Jia and Mr. Shiwei Wu transferred their equity interests of Wusu Company to Hexin E-Commerce, and therefore, Hexin E-Commerce became the sole shareholder of Wusu Company on November 20, 2020. On December 16, 2020, Hexin Yongheng, Kuaishangche, Hexin E-Commerce, Xiaobo An, Xiaoning An, and Xiaobin Zhai entered into an assignment and assumption agreement. Pursuant to this agreement, Hexin Yongheng has agreed to assign and transfer to Kuaishangche the control over Hexin E-Commerce, in exchange for cash consideration of RMB5.0 million(US$726,781). Upon the closing of the disposition, Kuaishangche became the primary beneficiary of and obtained control of Hexin E-Commerce, and as a result, assume all assets and liabilities of Hexin E-Commerce and subsidiaries owned or controlled by Hexin E-Commerce, excluding any rights, titles, interests or claims that Hexin E-Commerce had in Wusu Company, which remained a consolidated variable interest entity of the Hexin Yongheng by way of the December 1, 2020 contractual arrangements. We closed the disposition of Hexin E-Commerce on December 30, 2020. As a result of the Company's P2P disposal and leases termination, on October 15, 2020, the Company entered into a lease agreement with Mr. Xiaobo An, who provided office space to the Company at no charge. The lease term is 1 year. As of March 31, 2020, the balance of amount due to related parties was US$2,093,684, which represented working capital the Company borrowed from the P2P business before its disposal. After disposal, the Company borrowed a total of US$ 875,098 (RMB4,880,000), as a result, the amount due to related parties was US$2,968,782 as of March 31, 2021. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Mar. 31, 2021 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | Note 15 – EMPLOYEE BENEFITS The Company has made the required employee benefit contributions in accordance with relevant rules and regulations in the PRC. Such contributions includes funding for retirement insurance, unemployment insurance, medical insurance, work injury insurance and maternity insurance. The Company recorded the contributions in salary and employee charges at specified percentages of the salaries, bonuses and certain allowances of its employees, up to a maximum amount specified by the local government. The contributions made by the Company were US$ 435,689, US$ 399,104, and US$ 35,469 for the years ended March 31, 2021, 2020 and 2019, respectively. |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Mar. 31, 2021 | |
TAXES PAYABLE | |
TAXES PAYABLE | Note 16 – TAXES PAYABLE As of As of March 31, 2021 March 31, 2020 USD USD Income taxes payable 419,709 — VAT receivable (117,336) (43,361) Other taxes payable 309 — Total taxes payable (receivable) 302,682 (43,361) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | Note 17 – INCOME TAXES Cayman Islands Xiaobai Maimai Inc. was incorporated in the Cayman Islands and is not subject to income taxes or capital gain under current laws of Cayman Islands. Hong Kong HK Hexindai is an investment holding company registered in Hong Kong and exempted from income tax on its foreign‑derived income. PRC The Company’s subsidiaries and VIEs established in the PRC are subject to the PRC statutory income tax rate of 25%, according to the PRC Enterprise Income Tax ("EIT") law. The Company's VIE Hexin Digital has been granted as the "high technology enterprise" status in 2020 and is qualified to a preferred income tax rate of 15% since October 1, 2020. i) The components of the income tax expenses (benefit) are as follows: Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Current 482,976 446,769 853,970 Deferred — 43,186 (46,260) Total 482,976 489,955 807,710 All income taxes are related to income derived in the PRC during the years ended March 31, 2021, 2020 and 2019. ii) The following table summarizes net deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities: As of As of March 31, 2021 March 31, 2020 USD USD Advertising expenses — 67,925 Provision for loan loss 5,539,854 3,754,257 Provision for accounts receivable and contract assets — 15,698 Net operating loss carry forwards 1,004,821 422,446 Total deferred tax assets 6,544,675 4,260,326 Less: Valuation allowance (6,544,675) (4,260,326) Total net deferred tax assets — — The Company considers available evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. A valuation allowance has been established for net deferred tax assets based on a more-likely-than-not threshold. The Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. The Company has provided US$6,544,675 and US$ 4,260,326 and nil valuation allowance for the years ended March 31, 2021, 2020 and 2019, respectively. The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the years ended March 31, 2021, 2020 and 2019. Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 PRC Income tax statutory rate (25.0) % (25.0) % (25.0) % Effect of tax holiday and preferential tax rate 1.0 % — — Non-deductible foreign losses 4.8 % 18.5 % 33.0 % Change in valuation allowance 21.1 % 9.1 % — % Non-deductible expenses and others (0.3) % (1.5) % 3.8 % Effective tax rate 1.6 % 1.1 % 11.8 % According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding US$15,263 (RMB100,000) is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. Aggregate undistributed earnings of the Company’s PRC subsidiaries and VIEs that are available for distribution was approximately negative US$36 million and US$75 million as of March 31, 2021 and 2020 respectively. In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. In addition, under the tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. On July 19, 2018, the board of directors approved an annual dividend policy. Under this policy, annual dividends will be set at an amount equivalent to approximately 15-25% of the Company’s anticipated net income after tax in each year commencing from fiscal year ended March 31, 2019, which will be derived from the earnings of the Company’s PRC entities. On July 23, 2018, the board of directors declared an annual dividend for the fiscal year ended March 31, 2019 pursuant to the newly adopted annual dividend policy of US$0.27 per ordinary share (or US$0.27 per ADS). The aggregated dividend payments to shareholders derived from the earnings of the Company's PRC entities amounted to US$13.2 million for the year ended March 31, 2019. As a result, the Company incurred and paid withholding tax of US$1.3 million for the cash dividend during the year ended March 31, 2019. A deferred tax liability should be recognized for the undistributed profits of PRC subsidiaries unless the Company has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. The Company plans to indefinitely reinvest undistributed profits earned from its China subsidiaries in its operations in the PRC. Therefore, no withholding income taxes for undistributed profits of the Company’s subsidiaries have been provided as of March 31, 2021 and 2020. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of the financial reporting basis over the tax basis in a domestic subsidiary. 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 completed its feasibility analysis on a method, which the Company will ultimately execute if necessary to repatriate the undistributed earnings of the VIE without significant tax costs. As such, the Company does not accrue deferred tax liabilities on the earnings of the VIE given that the Company will ultimately use the means. |
EARNINGS (LOSS) PER SHARE ("EPS
EARNINGS (LOSS) PER SHARE ("EPS") | 12 Months Ended |
Mar. 31, 2021 | |
EARNINGS (LOSS) PER SHARE ("EPS") | |
EARNINGS (LOSS) PER SHARE ("EPS") | Note 18 – EARNINGS (LOSS) PER SHARE (“EPS”) Basic EPS is the amount of net earnings available to each share of ordinary shares outstanding during the reporting period. Diluted EPS is the amount of net earnings available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares. The following table details the outstanding shares for basic and diluted net earnings per share: Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Numerator: Net (loss) from continuing operation (31,552,242) (47,363,485) (7,615,748) Net (loss) income from discontinued operation (3,274,747) (23,834,894) 13,148,329 Net (loss) income (34,826,989) (71,198,379) 5,532,581 Denominator: Weighted average number of ordinary shares outstanding-basic 48,837,977 48,757,199 48,693,162 Weighted average number of dilutive potential ordinary shares from share options — — 4,219,664 Weighted average number of ordinary shares outstanding-diluted 48,837,977 48,757,199 52,912,826 Basic (loss) income per common share (0.71) (1.46) 0.11 Diluted (loss) income per common share (0.71) (1.46) 0.10 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2021 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | Note 19 – SHAREHOLDERS’ EQUITY Xiaobai Maimai Inc. was established under the laws of the Cayman Islands on April 25, 2016. The authorized number of ordinary shares is 500,000,000 shares with par value of US$0.0001 each. As of March 31, 2021 and 2020, 48,850,574 and 48,818,340 ordinary shares were outstanding. On August 24, 2020, the Company amended the ratio of ADS representing its ordinary shares from one (1) ADS representing one (1) ordinary share to one (1) ADS representing three (3) ordinary shares. The change in the ADS ratio has the same effect as a one-for-three reverse ADS split. There was no change to our ordinary shares in connection with the change of the ADS ratio. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2021 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | Note 20 – SHARE-BASED COMPENSATION 2016 Equity Incentive Plan On April 1, 2016 (the “Award date”), to reward the Company’s employees and further align their interests with the Company in the future, the Company granted stock options to purchase 6,312,000 ordinary shares under the 2016 Equity Incentive Plan, adjusted for the nominal share issuance, to the Company’s officers, and key employees with the exercise price equal to US$1.28. The Company determined the grant date to be April 1, 2016 in accordance with ASC 718‑10‑20 and 718‑10‑25‑5. It is because the Company and employee have reached a mutual understanding of the key terms and conditions of these stock option awards on April 1, 2016 including a specific exercise price and vesting and exercise conditions. All necessary approvals for the stock option awards were obtained and communicated to employees on April 1, 2016. Subsequently, after the board of directors declared a cash dividend of $0.40 per ordinary share (or US$0.40 per ADS) on July 23, 2018, the board of directors further approved an adjustment to the exercise price of outstanding options from US$1.28 to US$0.88. The Options vested and became exercisable in three equal installments with the first vesting commencement date being the later of the first anniversary of the grant date or the closing date of a Qualified IPO. Subject to the continued employment or service through each applicable vesting date of the option holder, shares subject to the Option shall become vested as to the remaining two‑thirds of the total number of share options under the 2016 Equity Incentive Plan in two (2) substantially equal annual installments, with the first installment vesting on the second anniversary of the grant date and the second installment vesting on the third anniversary of the grant date; provided that a Qualified IPO shall have occurred on or prior to the second anniversary of the grant date. The maximum contractual term is 4 years from the April 1, 2016. These options expired on March 31, 2020 and cannot be exercised if they have not vested by the expiration date or the termination date of the options. If a Qualified IPO does not occur within two years of April 1, 2016, such option will immediately expire to the extent unvested. As vesting is triggered only upon a Qualified IPO, such unvested options will be forfeited. The options contain an explicit service condition (i.e., the options vest at each of three years following a successful initial public offering) and a performance condition (i.e., the options can only be exercised upon successful completion of an initial public offering by employees that are still employed by the Company upon the completion of the initial public offering). Under ASC 718‑10‑55‑76, if the vesting (or exercisability) of an award is based on the satisfaction of both a service and performance condition, the entity must initially determine which outcomes are probable and recognize the compensation cost over the longer of the explicit or implicit service period. Because an initial public offering generally is not considered to be probable until the initial public offering is effective, no compensation cost will be recognized until the initial public offering occurs. The Company has elected to recognize share-based compensation expense using a straight‑line method for the entire employee equity awards granted with graded vesting based on service conditions provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant‑date value of the equity awards that are vested at that date. Upon successful completion of a Qualified IPO, the Company will recognize share-based compensation for the portion of the requisite service that has been rendered as of that date for the portion for the period from April 1, 2016 to the date of the Completion of Qualified IPO on November 3, 2017. The Company is responsible for determining the fair value of options granted to employees and uses the Binomial option‑pricing model assuming as of the valuation date, the fair market value per share was US$1.41, exercise price per share was US$1.28, the risk-free interest rate was 1.81%, and the dividend yield was 0%. For the options granted under 2016 Equity Incentive Plan, the expiry data was March 31, 2020, the life of option was 4 years and volatility was 47.4%. The following table sets forth the stock option shares activities under the Company’s 2016 Equity Incentive Plan for the years ended March 31, 2021, 2020 and 2019. Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life in Grant Date Intrinsic options Price Years Fair Value Value USD USD USD Outstanding, March 31, 2018 6,184,000 1.28 2 3,441,460 62,025,520 Number of Granted 208,400 8.6 2 791,920 — Number of Exercise (1,127,853) 1.03 — (627,662) — Number of Forfeit (278,469) 1.31 — (201,891) — Outstanding, March 31, 2019 4,986,078 1.18 1 3,403,827 7,954,959 Number of Exercise (320,020) 1.03 1 (185,612) — Number of Expired, forfeited or cancelled (345,104) 3.73 — (237,392) — Outstanding, March 31, 2020 4,320,954 1.01 0.4 2,980,823 — Number of Exercise — Number of Expired, forfeited or cancelled (3,487,064) — (3,332,614) — Outstanding, March 31, 2021 833,890 1.23 — 1,022,903 — Vested and exercisable, March 31, 2019 4,861,604 0.99 1 2,930,826 7,954,959 Vested and exercisable, March 31, 2020 4,298,787 0.97 — 2,646,781 — Vested and exercisable, March 31, 2021 833,890 1.23 — 1,022,903 — Restricted Stock Units During the year ended March 31, 2019, the Company granted 616,700 restricted stock units (“RSU”). One RSU represents one ordinary share of the Company. RSU are share awards that, upon vesting, will deliver to the holder shares of the Company’s ordinary shares. Some of the RSU were to be vested over three years, one third (1/3) vesting and exercisable upon the date of grant, and the remaining two-thirds (2/3) of RSUs equally vesting and exercisable upon each of the second and third anniversary of the grant date. Some of the RSU were exercisable upon the date of grant. The Company satisfies RSU vesting through the issuance of new shares. During the year ended March 31, 2021, 2020 and 2019, 32,234, 38,900 and 538,900 RSU has been vested. The following table summarized the Company’s RSUs activities under all incentive plans (in US$, except shares): Number of Restricted Shares Weighted-average grant date fair value USD Outstanding at March 31, 2018 — Granted 616,700 9.26 Vested (538,900) 9.26 Forfeited — — Outstanding at March 31, 2019 77,800 9.26 Granted Vested (38,900) Forfeited (3,333) Outstanding at March 31, 2020 35,567 Granted — — Vested (32,234) Forfeited (3,333) — Outstanding at March 31, 2021 — — The fair value of the stock options and RSUs on the grant date was approximately US$3.5 million. The Company accrues the compensation cost based on the number of awards that are expected to vest. The estimated forfeiture rate for the awards in fiscal years ended March 31, 2021, 2020 and 2019 is 13.04%. The forfeiture rate is estimated based on the historical employee turnover rates and expectations about the future. Stock based compensation For the years ended March 31, 2021, 2020 and 2019, the Company recognized US$55,468, US$347,466, and US$6,585,386 share-based compensation expense, respectively. As of March 31, 2021 and 2020, the unrecognized compensation cost was nil and US$64,415, respectively. |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Mar. 31, 2021 | |
TREASURY STOCK | |
TREASURY STOCK | Note 21 – TRESURY STOCK On December 10, 2018, the Company announced that its board of directors authorized a share repurchase program under which the Company may repurchase up to US$25 million of its ordinary shares in the form of American depositary shares ("ADS") over the next 12 months. The Company repurchased an aggregate of 1,165,883 ADSs from the open market for a total consideration of US$3,988,370, which was recorded as treasury stock. |
DIVIDEND
DIVIDEND | 12 Months Ended |
Mar. 31, 2021 | |
DIVIDEND | |
DIVIDEND | Note 22 – DIVIDEND On July 19, 2018, the board of directors approved an annual dividend policy. Under this policy, annual dividends will be set at an amount equivalent to approximately 15-25% of the Company’s anticipated net income after tax in each year commencing from fiscal year ended March 31, 2019. On July 23, 2018, the board of directors declared a cash dividend of $0.40 per ordinary share (or US$0.40 per ADS). The cash dividend consisted of an annual dividend for the fiscal year ended March 31, 2019 pursuant to the newly adopted annual dividend policy of US$0.27 per ordinary share (or US$0.27 per ADS), and a special cash dividend of US$0.13 per ordinary share (or US$0.13 per ADS). The aggregated dividend payments to shareholders amounted to US$19,547,532 for the year ended March 31, 2019. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Mar. 31, 2021 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | Note 23 – RESTRICTED NET ASSETS Restricted Net Assets As a result of the PRC laws and regulations and the requirement that distributions by the PRC entities can only be paid out of distributable profits computed in accordance with the PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Company. The restricted net assets consist of paid in capital, capital reserve and statutory reserves of the Company's PRC entities. As of March 31, 2021 and 2020, the restricted net assets that are not available for distribution amounted to approximately US$86.9million and US$81.0 million, respectively, which was included in the additional paid-in capital on the consolidated balance sheets. Statutory Reserve Pursuant to the Company Law of the PRC, each of the PRC entities is required to appropriate 10% of its net income to the statutory reserve on an annual basis until the aggregated amount of the reserve reaches 50% of its registered capital. The statutory reserve is not distributable. Subject to the approval of the shareholders, the statutory reserve may be used to offset accumulated losses or converted into capital of the company. As of March 31, 2021 and 2020, the statutory reserves amounted to US$469,473 and US$430,704, which was included as retained earnings in the accompanying consolidated balance sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | Note 24 – COMMITMENTS AND CONTINGENCIES Contingencies In the ordinary course of business, the Company may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. As of March 31, 2021 and 2020, no such contingent liabilities are assessed as probable. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | Note 25 – SUBSEQUENT EVENTS On July 13, 2021, Hexin Holding Limited, the shareholder of the Company owned by Mr. Xiaobo An, founder, Chairman and Chief Executive Officer of the Company, entered into a Share Purchase Agreement (“SPA”) with Webao Limited, a company incorporated in Hong Kong, China, to sell a total of 31,980,800 ordinary shares. After the transaction, the number of ordinary shares owned by Hexin Holding Limited decreased to nil accordingly. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Mar. 31, 2021 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | XIAOBAI MAIMAI INC. AND SUBSIDIARIES Schedule I - CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company’s subsidiaries and VIEs established in the PRC are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The Company’s subsidiaries and its VIEs are also required to set aside at least 10% of its after‑tax profit based on the PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. In addition, the Company's operations and revenues are conducted and generated in China, all of the Company's revenues being earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to the PRC foreign exchange control regulations that restrict the Company's ability to convert RMB into US Dollars. Regulation S-X requires the condensed financial information of a registrant shall be filed 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. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant's proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances, or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company's PRC subsidiaries and VIEs exceed 25% of the consolidated net assets of the Company. The condensed financial information of the parent company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Company’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries, VIEs and VIEs’ subsidiaries. The footnote disclosures generally included in financial statements prepared in accordance with US GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. CONDENSED BALANCE SHEETS As of March 31 As of March 31 2021 2020 USD USD ASSETS: Cash 1,483,484 1,709,149 Prepayment and other assets 160,450 5,795 Investments in subsidiaries, VIEs and VIEs’ subsidiaries 30,793,763 66,588,445 TOTAL ASSETS 32,437,697 68,303,389 LIABILITIES: Accrued expenses and other current liabilities 161,882 202,500 Note payable 10,000,000 20,000,000 Due to related party 5,004,290 — TOTAL LIABILITIES 15,166,172 20,202,500 SHAREHOLDERS' EQUITY: Ordinary shares ($0.0001 par value, 500,000,000 shares authorized, 50,016,457 and 49,984,223 shares issued, 48,850,574 and 48,818,340 shares outstanding as of March 31, 2021 and 2020, respectively.) 5,002 4,999 Additional paid-in capital 49,330,571 60,559,583 Treasury stock (3,988,370) (3,988,370) Retained earnings (26,760,239) (1,429,623) Accumulated other comprehensive loss (1,315,439) (7,045,700) TOTAL SHAREHOLDERS’ EQUITY 17,271,525 48,100,889 TOTAL LIABILITIES AND SHEREHOLDERS’ EQUITY 32,437,697 68,303,389 CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME Years Ended March 31, 2021 2020 2019 USD USD USD Equity in (loss) earnings of subsidiaries, VIEs and VIEs’ subsidiaries (28,512,556) (35,994,910) 14,725,415 General administrative expense and others (4,714,433) (6,013,633) (9,192,834) Impairment on long-term investments (1,600,000) (29,189,836) — NET (LOSS) INCOME (34,826,989) (71,198,379) 5,532,581 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 3,942,157 (5,288,742) (6,136,187) COMPREHENSIVE LOSS (30,884,832) (76,487,121) (603,606) CONDENSED STATEMENTS OF CASH FLOWS For The Years Ended March 31, 2021 2020 2019 USD USD USD CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income (34,826,989) (71,198,379) 5,532,581 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of subsidiaries, VIEs and VIEs’ subsidiaries 28,512,556 35,994,910 (14,725,415) Impairment long-term investments 1,600,000 29,189,836 — Share-based compensation 55,468 347,466 6,585,386 Changes in operating assets and liabilities: Prepayments and other assets (154,653) 344,195 (339,995) Accrued expenses and other current liabilities (40,618) 184,258 (2,562,074) Interest payments on unsecured senior notes and short-term bank loan (2,114,388) — — NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (6,968,624) (5,137,714) (5,509,517) CASH FLOWS FROM INVESTING ACTIVITIES: Increase in investment in subsidiaries, VIEs and VIE’s subsidiaries — (1,000,000) (15,420,961) Purchase of long-term investments — (14,594,918) (1,600,000) NET CASH PROVIDDED BY (USED IN) IN INVESTING ACTIVITIES — (15,594,918) (17,020,961) CASH FLOWS FROM FINANCING ACTIVITIES: Exercise of share options 281,616 1,156,623 Proceeds from issuance of unsecured note — — 20,000,000 Principal payments on unsecured senior notes (10,000,000) — — Repayment from subsidiaries, VIEs and VIE’s subsidiaries 11,738,667 — — Repurchase of ordinary shares — (2,667,902) (1,320,468) Payments for offering cost — — (318,000) Dividend paid — (19,547,532) Proceeds from related party 5,004,290 — — NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 6,742,960 (2,386,286) (29,377) NET (DECREASE) INCREASE IN CASH (225,665) (23,118,918) (22,559,855) CASH—beginning of year 1,709,149 24,828,067 47,387,922 CASH—end of year 1,483,484 1,709,149 24,828,067 SUPPLEMENTAL CASH FLOW DISCLOSURES: Cash paid for income tax — — — Cash paid for interest 2,114,388 2,413,014 — Notes to condensed financial statements 1 Xiaobai Maimai Inc., formerly known as Hexindai Inc., was founded on April 25, 2016 in the Cayman Islands. The condensed full year results of the Company have been prepared assuming the Reorganization (see Note 1 in the consolidated financial statements) was in effect from November 1, 2016. 2 The condensed financial statements of Xiaobai Maimai Inc. have 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 subsidiaries, VIEs and subsidiaries of VIEs. Such investment in subsidiaries and VIEs are presented on the balance sheets as interests in subsidiaries and VIEs and the income (loss) of the subsidiaries and VIEs is presented as equity in (loss) earnings of subsidiaries and VIEs on the statement of operations. 3 As of March 31, 2021 and 2020, there were no material contingencies, significant provisions of long-term obligations of the Company, except for those which have been separately disclosed in the consolidated financial statements. 4 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 notes to consolidated financial statements disclosed 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. Certain prior year balances in the consolidated statements of operations and comprehensive (loss) income and cash flows have been reclassified to the current year’s presentation. |
Basis of consolidation | Basis of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, its consolidated VIEs and VIE’s subsidiaries for which the Company is the primary beneficiary. All inter-company transactions and balances have been eliminated upon consolidation. Due to the disposal of the P2P business, which represented a strategic shift and had a major effect on the Company’s results of operations, revenues, costs and expenses related to the P2P Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. Assets and liabilities of the P2P business were reclassified separately from other assets and liabilities of the Company on the consolidated balance sheets. Refer to Notes 1 and Note 4. Consolidated VIEs VIE arrangements Foreign ownership of internet-based businesses, including distribution of online information (such as an online marketplace connecting borrowers and investors), is subject to restrictions under current PRC laws and regulations. The Company’s holding company, Xiaobai Maimai Inc., is a Cayman Islands company and its WOFE (a PRC subsidiary) and Tianjin Haohongyuan are considered foreign invested enterprises. To comply with these regulations, the Company conducts the majority of its business activities in the PRC through its VIEs VIEs hold the requisite licenses and permits necessary to conduct the Company's online marketplace connecting borrowers and investors. The WOFE has entered into the following contractual arrangements with the shareholders of the VIEs that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIEs and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. The Company is fully and exclusively responsible for the management of the VIEs, assumes all of risk of losses of the VIEs and has the exclusive right to exercise all voting rights of the VIEs' shareholders. Therefore, in accordance with Accounting Standards Codification (“ ASC”) 810 Business Consolidation, the Company is considered the primary beneficiary of the VIEs and has consolidated the VIEs' assets, liabilities, results of operations, and cash flows in the accompanying consolidated financial statements. Exclusive Business Cooperation Agreements The Exclusive Business Cooperation Agreements enable the WOFE to receive substantially all of the assets and business of the VIEs in the PRC. Under these Agreements, the WOFE has the exclusive right to provide the VIEs with comprehensive technical support, consulting services and other services during the term of these Agreements, including but not limited to software licensing; development, maintenance and update of software, network systems, hardware and database; technical support and training for employees; consultancy on technology and market information; business management consultation; marketing and promotion services, etc. The WOFE has the right to determine the fees associated with the services it provides based on the technical difficulty and complexity of the services, the actual labor costs it incurs for providing the services and some other factors during the relevant period. This Agreements remain effective unless otherwise terminated in writing by WOFE. Equity Interest Pledge Agreements Pursuant to the Equity Interest Pledge Agreements, each Shareholder of the VIEs agreed to pledge their equity interest in the VIEs to the WOFE to secure the performance of the VIEs' obligations under the Exclusive Business Cooperation Agreements and any such agreements to be entered into in the future. Shareholders of the VIEs agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on their equity interests in the VIEs without the prior written consent of the WOFE. The Pledges became effective on such date when the pledge of the Equity Interest contemplated herein were registered with the relevant administration for industry and commerce (the "AIC") and remain effective until all contract obligations have been fully performed and all secured indebtedness has been fully paid. Exclusive Option Agreements Pursuant to the Exclusive Option Agreements, each of the Shareholders of the VIE irrevocably grant the WOFE an irrevocable and exclusive right to purchase, or designate one or more persons (including individuals, corporations, partnerships, partners, enterprises, trusts or non-corporate organizations) to purchase the equity interests in the VIEs then held by such Shareholder of the VIEs once or at multiple times at any time in part or in whole at the WOFE's sole and absolute discretion to the extent permitted by Chinese laws at the price of RMB 1 or at the price of the minimum amount of consideration permitted by the applicable PRC law at the time when such purchase occurs. These three Agreements remain effective until all equity interests held by the shareholders of the VIEs in the VIEs have been transferred or assigned to the WOFE and/or its designees. Loan Agreements Pursuant to the three Loan Agreements, the WOFE agreed to lend each of the Shareholders of VIEs a loan only to subscribe to the registered capital of the VIEs. The repayment of the loan shall be made by permitting the WOFE to execute its exclusive right to purchase shares from the shareholders of the VIEs under the Exclusive Option Agreement as the repayment is equivalent to the consideration of the purchased shares. The term of these loans is 10 years, which may be extended upon mutual written consent of all parties. Power of Attorney Each Shareholder of the VIEs, executed a Power of Attorney agreement with the WOFE and the VIEs, whereby Shareholders of the VIEs irrevocably appoint and constitute the WOFE as their attorney-in-fact to exercise on the shareholders' behalf any and all rights that Shareholders of the VIEs have in respect of their equity interests in the VIEs. These three Power of Attorney documents remain irrevocable and continuously effective and valid as long as the original shareholders of the VIEs remain as the Shareholders of the VIEs. Risks in relation to the VIE structure The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with the PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company's ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of the PRC laws and regulations, the PRC government could: · revoke the business and operating licenses of the Company's PRC subsidiary and VIEs; · discontinue or restrict the operations of any related-party transactions between the Company's PRC subsidiary and VIEs; · limit the Company's business expansion in the PRC by way of entering into contractual arrangements; · impose fines or other requirements with which the Company's PRC subsidiary and VIEs may not be able to comply; · require the Company or the Company's PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; and/or · restrict or prohibit the Company's use of the proceeds of the additional public offering to finance the Company's business and operations in the PRC. The Company's ability to conduct its Online Marketplace business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIEs. The interests of the shareholders of VIEs may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Company cannot assure that when conflicts of interest arise, shareholders of the VIEs will act in the best interests of the Company or that conflicts of interests will be resolved in the Company's favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest the shareholders of the VIEs may encounter in their capacity as beneficial owners and directors of the VIEs, on the one hand, and as beneficial owners and directors of the Company, on the other hand. The Company believes the shareholders of VIEs will not act contrary to any of the contractual arrangements and the exclusive option agreements provide the Company with a mechanism to remove the current shareholders of the VIEs should they act to the detriment of the Company. The Company relies on certain current shareholders of the VIEs to fulfill their fiduciary duties and abide by laws of the PRC and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and the shareholders of the VIEs, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. The following financial statement amounts and balances of the consolidated VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. As of As of March 31, 2021 March 31, 2020 USD USD Current Assets: Cash and cash equivalents 10,246,074 1,119,651 Accounts receivable and contract assets, net 28,362 1,884 Loans receivable, net - current 5,488,045 12,626,200 Prepayments and other assets 381,297 303,710 Other receivable - current 8,872,838 23,609,338 Amounts due from related parties 13,936,237 318,811 Current assets of discontinued operations — 8,686,507 Total Current Assets 38,952,853 46,666,101 Loans receivable, net - non-current, — 14,070,741 Property, equipment and software, net 64,268 92,832 Right-of-use assets — 670,738 Other receivable - non-current 1,496,121 8,237,346 Non-current assets of discontinued operations — 3,786,332 Total Assets 40,513,242 73,524,090 Current Liabilities Accrued expenses and other current liabilities 246,210 252,842 Taxes payable (deductible) 363,484 (47,920) Lease liabilities - current — 740,753 Current liabilities of discontinued operations — 8,421,098 Total Current Liabilities 609,694 9,366,773 Lease liabilities - non-current — 13,498 Total Liabilities 609,694 9,380,271 Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Net revenues 1,759,941 5,944,541 3,510,252 Net (loss) income (24,258,182) (12,532,634) 1,420,897 Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Net cash provided by (used in) operating activities 21,401,699 (65,068,631) 721,269 Net cash provided by (used in) investing activities 407,419 46,074,236 (51,541,988) Net cash provided by (used in) financing activities (13,127,699) 123,671 — |
Uses of estimates | Uses of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Company's consolidated financial statements include estimates and judgments applied in allocation of revenue with various performance obligations, allowance for accounts receivable and contract assets, impairment on long-term investments, valuation allowance for deferred tax assets, valuation of share-based compensation and allowance for loans receivable. |
Fair value of financial instruments | Fair value of financial instruments Fair value is 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 Company considers the principal or most advantageous market in which it would transact and the market-based risk measurement or assumptions that market participants would use when pricing the asset or liability. The Company follows the provisions of Financial Accounting Standards Board ("FASB"), Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Inputs are unobservable inputs which reflect the reporting entity's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, receivables, prepayments and other assets, loan principal and interest receivable, approximate their fair value based on the short-term maturity of these instruments. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended March 31, 2021, 2020 and 2019. The Company’s long-term investments consist of equity securities and available-for-sale investments. For long-term investments without readily determinable fair value, the Company is not able to estimate fair value, hence, the Company uses the cost minus impairment method as alternative. |
Discontinued Operations | Discontinued Operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Included in the consolidated statements of operations and comprehensive (loss) income, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. |
Revenue recognition | Revenue recognition In May 2020, the Company launched its social e-commerce platform and built collaboration with domestic mainstream E-commerce marketplaces. The Company provides recommendation services by referring certain interested users to those marketplaces for high-quality and affordable branded products . Prior to business transformation, the Company through its P2P business offered online consumer lending-related service in fiscal year 2020, which was discontinued in fiscal year 2021 and disposed on December 30, 2020. The Company presents value added taxes (“VAT”) as a reduction of revenues. Revenues generated are accounted under Accounting Standards Update (ASU) 2014-09, “Revenue from contracts with Customers” (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation Online marketplace services Commission revenue: The commission services revenue primarily consists of commission fees charged to the online E-commerce marketplace for recommending users to purchase on their marketplaces, where the Company generally is acting as an agent and its performance obligation is to provide recommendation services for purchasing specified goods or services by those third-party sellers, is not responsible for fulfilling the promise to provide the specified goods or services, and does not have the ability to control the related shipping services when utilized by the third-party sellers. Upon successful sales, the Company will charge the online E-commerce companies a negotiated amount or a fixed rate commission fee based on the sales amount. Commission services revenues are recognized on a net basis at the point of receipt of products, net of a return allowance and incentives to consumers or channels. In order to promote its online marketplace and attract more registered consumers, the Company at its own discretion offers incentives to consumers. Consumers are not customers of the Company, therefore incentives offered to consumers are not considered payments to customers. Such incentives offered to consumers were as a reward for purchasing by themselves or their sharing through our platform. Incentives provided to consumers are specific to any merchant and are recognized as a reduction of commission service revenue. For the year ended March 31, 2021, the total amount of incentives was US$159,996. · Recommendation service The Company started to provide recommendation services by referring certain borrowers to Funding Partners since July 2019. Such services primarily include referral through the Company’s marketplace that directs users to third party financial institutions. The Company received a referral fee from the third-party financial institutions and such revenue was recognized at the point that the recommendation services are performed and the related funds are drawdown by borrowers. For the years ended March 31, 2021 and 2020, the Company earned nil and US$3,754,738 recommendation service revenue from its partnership with a financial services provider in China, or the Funding Partner. · Interest income Started in August 2017, the Company lent funds to borrowers up to their approved credit through its consolidated VIE , and since May 2019, the Company has ceased to issue new loans through its microlending business . Interest income on loans receivable is recognized monthly based on the contractual interest rates of the loan. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. When a loan is discontinued from interest accrual, the Company stops accruing interest and reverses all accrued but unpaid interest as of such date. Interest income from continuing operations was US$1,690,448, US$3,043,096, and US$3,552,759 for the years ended March 31, 2021, 2020 and 2019, respectively, which was included as net revenues in the accompanying consolidated statements of operations and comprehensive (loss) income. · Other revenue Other revenue includes one-time fees for loan transfers, other general fees charged to borrowers and sales, which are recognized when the related performance is completed. Interest income and recommendation service revenue was presented as revenue from continuing operation as the Company currently had no intention to sell or plan to find a buyer for the disposal of such business and might continue to carry out them in the foreseeable future when the economic condition improved and the pandemic controlled. · Disaggregation of revenue All of the Company’s revenue for the years ended March 31, 2021, 2020 and 2019 were generated from the PRC. The following table illustrates the disaggregation of revenue: Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Revenue Commission service 82,054 — — Recommendation service — 3,754,738 — Interest income 1,690,448 3,043,096 3,552,759 Other — 161,538 184,968 Total revenues 1,772,502 6,959,372 3,737,727 Tax and surcharges (17,567) (44,898) (42,510) Net Revenues 1,754,935 6,914,474 3,695,217 |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents represent cash on hand, unrestricted demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. |
Accounts receivable and allowance for uncollectible accounts | Accounts receivable and allowance for uncollectible accounts Accounts receivable are mainly receivables from online E-commerce marketplaces and recommendation services, which are stated at the historical carrying amount net of allowance for uncollectible accounts. The Company establishes an allowance for uncollectible accounts receivable based on estimates, historical experience and other factors surrounding the credit risk of specific customers. Uncollectible accounts receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Company has determined that is not probable for the balance to be collected. Beginning on April 1, 2020, the Company evaluates its accounts receivable for expected credit losses on a regular basis. The Company maintains an estimated allowance for credit losses to reduce its accounts receivable to the amount that it believes will be collected. The Company uses the length of time a balance has been outstanding, the payment history, creditworthiness and financial conditions of the customers and industry trend as credit quality indicators to monitor the Company’s receivables within the scope of expected credit losses model and use these as a basis to develop the Company’s expected loss estimates. The Company adjusts the allowance percentage periodically when there are significant differences between estimated bad debts and actual bad debts. If there is strong evidence indicating that the accounts receivable is likely to be unrecoverable, the Company also makes a specific allowance in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts have been exhausted. As of March 31, 2021 and 2020, the allowance for uncollectible accounts receivable balance was US$67,864 and US$ 62,794 respectively. |
Loans receivable | Loans receivable Since August 2017, the Company engaged in the micro-lending business and target borrowers in the PRC. Loans receivable represent loans originated by the Company, which is due from the qualified individual borrowers. For the years ended March 31, 2021 and 2020, the total amount of new loans the Company issued was nil and US$74,003. As of March 31, 2021 and 2020, the loans are terms ranging from 12 months to 36 months with annual interest charges from 6% to 8%. The Company has the intent and the ability to hold such loans for the foreseeable future or until maturity or payoff. Loans receivable are recorded at the historical carrying amount, net of allowance for uncollectible loans receivable. The Company evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the lives of loans on an individual basis based on the Company’s past experiences, the borrowers’ financial position, their financial performance, and their ability to continue to generate sufficient cash flows. A valuation allowance is established for the loans unable to collect. As of March 31, 2021 and 2020, the allowance for uncollectible loan receivable balance was US$39,172,141 and US$ 15,017,029 respectively. Non-accrual policies Loan principal and interest receivable are placed on non-accrual status when payments are 90 days past due contractually. When loan principal and interest receivable is placed on non-accrual status, interest accrual ceases. If the loan is non-accrual, the cost recovery method is used and cash collected is applied to first reduce the carrying value of the loan. Otherwise, interest income may be recognized to the extent cash is received. Loan principal and interest receivable may be returned to accrual status when all of the borrower’s delinquent balances of loan principal and interest have been settled and the borrower continues to perform in accordance with the loan terms. Charge-off policies Loan principal and interest receivable are generally charged-off when a settlement is reached for an amount that is less than the outstanding balance or when the Company has determined the balance is uncollectable. In accordance with ASC 310-10-35-41, the Company determines that any loans with outstanding balance that are 180 days past due are deemed uncollectable and thereof charged-off. For the year ended March 31, 2019, in order to align the Company’s charge-off policy with ASC 310-10-35-41 and industry practice, the Company revised its charge-off policy such that all loans that are 180 days past due are therefore deemed uncollectible and charged-off. |
Property, equipment and software, net | Property, equipment and software, net Property, equipment and software acquired are stated at cost. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives: Useful life Office equipment 3-5 years Software 5 years The Company eliminates the cost and related accumulated depreciation and amortization of assets sold or otherwise retired from the accounts and includes any gains or losses from disposal of property, equipment, and software in other income. The Company charges maintenance, repairs, and minor renewals directly to expense as incurred; major additions and betterments to equipment are capitalized. |
Impairment of long-lived assets | Impairment of long‑lived assets The carrying value of the long-lived assets are reviewed for impairment, whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to future undiscounted net cash flows expected to be generated by the assets. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. No impairment loss was recognized for the years ended March 31, 2021, 2020 and 2019. |
Investment in equity securities | Investment in equity securities The Company's investment in equity securities was mainly comprised of equity investments in privately held companies. Upon adoption of ASU 2016-01 on April 1, 2018, the Company 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 operations. The Company also makes a qualitative assessment at the end of 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 consolidated statements of operations and comprehensive (loss) income. |
Advertising and promotion expenses | Advertising and promotion expenses The Company recognizes its advertising and promotion expenses as sales and marketing expense. Advertising expenses represent expenses for placing advertisements on television, radio and in newspapers, as well as on Internet websites and search engines. Advertising and promotion cost are expensed as incurred. For the years ended March 31, 2021, 2020 and 2019, the advertising and promotion expense was US$176,193, US$736,522, and US$1,080,905, respectively. |
Research and development costs | Research and development costs The Company recognizes its research and development costs as service and development expense. Research and development costs are mainly labor costs of the research and development department. For the years ended March 31, 2021, 2020 and 2019, research and development expense was US$ 441,405, US$117,942 and US$ nil, respectively, and included in service and development expense. |
Service and development expense | Service and development expense Service and development expense consists primarily of research and development costs. Including costs related to salaries, benefits and service costs directly relating to originating social e-commerce business. These expenses relate to credit assessment, maintenance and upgrading of our proprietary technology and risk management systems, live customer support, and third-party payment agent fees for fund management, payment, settlement and clearing services. |
Lease | Lease Upon the adoption of FASB ASC 842 on April 1, 2019 using the modified retrospective method, the Company determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities, in the Company’s consolidated balance sheets. The Company does not have any finance leases as of the adoption date or March 31, 2021. ROU represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. As of March 31, 2021, the Company has terminated all existing leases and the balance of ROU assets and lease liabilities are nil as of March 31, 2021. No penalties were charged for the termination. |
Share-based compensation | Share‑based compensation Under the Amended and Restated 2016 Equity Incentive Plan, the Company grants share options to the Company's selected employees, and directors. Awards granted to employees with service conditions attached are measured at the fair value on the grant date and are recognized as an expense using straight-line method, net of estimated forfeitures, over the requisite service period, which is generally the vesting period. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of share-based compensation expense to be recognized in future periods. Awards granted to employees with performance conditions attached are measured at fair value on the grant date and are recognized as compensation expense in the period and thereafter when the performance goal becomes probable to achieve. Awards granted to employees with market conditions attached are measured at fair value on the grant date and are recognized as compensation expense over the estimated requisite service period, regardless of whether the market condition has been satisfied if the requisite service period is fulfilled. Binomial option-pricing models are adopted to measure the value of awards at each grant date or measurement date. The determination of fair value is affected by assumptions relating to a number of complex and subjective variables, including but not limited to the expected share price volatility, actual and projected employee share option exercise behavior, risk-free interest rates and expected dividends. The use of the option-pricing model requires extensive actual employee exercise behavior data for the relative probability estimation purpose, and a number of complex assumptions. |
Treasury stock | Treasury stock Treasury stock represents ordinary shares repurchased by the Company that are no longer outstanding and are held by the Company. The repurchase of ordinary shares is accounted for under the cost method whereby the entire cost of the acquired shares are recorded as treasury stock. The cost of treasury stock is transferred to "additional paid-in capital" when it is re-issued for the purpose of share options exercised and share awards. |
Income taxes | Income taxes The Company's subsidiaries and its consolidated VIEs in the PRC are subject to the income tax laws of the relevant tax jurisdictions. No taxable income was generated outside the PRC for the years ended March 31, 2021, 2020 and 2019. The Company accounts for income tax under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Under this method, deferred income taxes will be recognized if significant temporary differences between tax and financial statements occur. A valuation allowance is established against net deferred tax assets when it is more likely that some portion or all of the net deferred tax asset will not be realized. The Company has provided no valuation allowance for the year ended March 31,2019. For the years ended March 31, 2020 and 2021, the Company provided a full valuation allowance on the net deferred tax assets. The Company may be subject to challenges from taxing authorities regarding the amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions. Management determines whether the benefits of its tax positions are more‑likely‑than‑not of being sustained upon audit based on the technical merits of the tax position. The Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and the amount can be reasonably estimated. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income taxes are classified as income tax expense in the period incurred. The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2021 and 2020, the Company did not have any significant unrecognized uncertain tax positions. All tax returns since the Company’s inception are still subject to examination by tax authorities. The Company does not believe that its unrecognized tax benefits will change over the next twelve months. |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings per share ("EPS") in accordance with FASB ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires public companies with capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) attributed to ordinary shareholders divided by the weighted average number of ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Foreign currency translation | Foreign currency translation Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (“RMB”). The Company’s financial statements have been translated into the reporting currency, the United States Dollar (“USD”). Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average exchange rate during the reporting period. The resulting translation adjustments are reported under accumulated other comprehensive income (loss). Transactions denominated in currencies other than functional currency are translated into the functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded in “other income (expense)” in the consolidated statements of operations and comprehensive income. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that any RMB amounts could have been, or could be, converted, realized or settled into USD at the rates used in translation. Spot exchange rates and average exchange rates were used in the translation of the consolidated financial statements. Fiscal year 2021 Fiscal year 2020 US Exchange Rate Year-end RMB 6.5518 7.0808 Year average RMB 6.7834 6.9637 |
Segment reporting | Segment reporting The Company's chief operating decision maker, the Chief Executive Officer, reviews the consolidated financial results when making decisions about allocating resources and accessing performance of the Company as a whole and hence, the Company has only one operating and one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. The Company's long-lived assets are substantially all located in the PRC and substantially all of the Company's revenue and expense are derived from within the PRC. Therefore, no geographical segments are presented. |
Significant risks and uncertainties | Significant risks and uncertainties Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Company’s cash and cash equivalents denominated in RMB amounted to US$ 15,128,719 and US$ 6,668,104 at March 31, 2021 and 2020, respectively. Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk primarily included in the financial lines of cash and cash equivalents, accounts receivable, loan receivables, other receivables and prepayments and other assets. As of March 31, 2021, substantially all of the Company’s cash and cash equivalents were deposited in financial institutions located in the PRC . According to the China Bank Deposit Insurance Ordinance, the deposits at each bank is covered by insurance with an upper limit of RMB500,000 (US$ 76,315) at each bank. As of March 31,2021, the total amount not covered by issuance in the PRC was US$13,656,927. To limit exposure to credit risk relating to deposits, the Company primarily place cash and cash equivalent deposits with large financial institutions in China which management believes are of high credit quality and management also continually monitors the financial institutions’ credit worthiness. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. There are no revenues from customers which individually represent greater than 10% of the total net revenues for any year of the three years period ended March 31, 2021. There are no customers of the Company that accounted for greater than 10% of the Company’s carrying amount of accounts receivable as of March 31, 2021 and 2020. COVID-19 impacts Starting from January 2020, a novel strain of coronavirus, COVID-19, has spread worldwide. As COVID-19 has negatively affected the broader Chinese economy and the global economy, China has experienced lower domestic consumption in the first half of 2020, and may experience further economic uncertainty, which may also impact us in a materially negative way. Starting from the fourth quarter of 2020 and extending to the first quarter of 2021, a few waves of COVID-19 infections emerged in various regions of China, and varying levels of travel restrictions were reinstated. Our business has been and is likely to continue to be materially adversely affected by the outbreak of COVID-19 in China. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Group adopted the new standard beginning April 1, 2020 using the modified retrospective transition approach. Based on the nature of the Company’s financial instruments within the scope of this standard, which are primarily accounts receivable, loans receivable and other receivables, the adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. Recently issued accounting pronouncements not yet adopted In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), which clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investments—Equity Method and Joint Ventures, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, including early adoption in an interim period, for periods for which financial statements have not yet been issued. The Company is currently evaluating the impact of this update on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The adoption of this standard is not expected to have a material impact on the Group’s consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated balance sheets, consolidated statements of operations and comprehensive loss (income) and consolidated statements of cash flows. |
BUSINESS DESCRIPTION (Tables)
BUSINESS DESCRIPTION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
BUSINESS DESCRIPTION | |
Schedule of the Company's principal subsidiaries and consolidated VIEs | As of March 31, 2021, the Company’s principal subsidiaries and consolidated VIEs are as follows: Date of incorporation / Place of Percentage of acquisition incorporation legal ownership Principal activities Wholly owned subsidiaries Hexindai Hong Kong Limited (“HK Hexindai”) May 17, 2016 Hong Kong 100% Investment holding Beijing Hexin Yongheng Technology Development Co., Ltd ( Wholly Owned Foreign Enterprise ,“WOFE”) August 8, 2016 PRC 100% Provision of consultancy and information technology (“IT”) support Tianjin Haohongyuan Technology Co., Ltd (“Tianjin Haohongyuan”) May 25, 2018 PRC 100% Provision of consultancy and IT support HX Asia Investment Limited June 25, 2018 BVI 100% Investment holding HX China Investment Limited January 16, 2019 BVI 100% Investment holding Hexin Investment Private Limited July 15, 2020 Singapore 100% Investment holding VIEs Wusu Hexin Yongheng Trading Co., Ltd (“Wusu Company) August 28, 2017 PRC Consolidated VIE Trading branded products and product promotion Hexin Digital Technology Co., Ltd.(“Hexin Digital “) August 1, 2019 PRC Consolidated VIE Provision of consultancy and IT support Beijing Hexin Jiuding Technology Co., Ltd. (“ Hexin Jiuding ”) January 1, 2021, PRC Consolidated VIE Provision of consultancy and IT support |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of financial statement amounts and balances of the consolidated VIEs | As of As of March 31, 2021 March 31, 2020 USD USD Current Assets: Cash and cash equivalents 10,246,074 1,119,651 Accounts receivable and contract assets, net 28,362 1,884 Loans receivable, net - current 5,488,045 12,626,200 Prepayments and other assets 381,297 303,710 Other receivable - current 8,872,838 23,609,338 Amounts due from related parties 13,936,237 318,811 Current assets of discontinued operations — 8,686,507 Total Current Assets 38,952,853 46,666,101 Loans receivable, net - non-current, — 14,070,741 Property, equipment and software, net 64,268 92,832 Right-of-use assets — 670,738 Other receivable - non-current 1,496,121 8,237,346 Non-current assets of discontinued operations — 3,786,332 Total Assets 40,513,242 73,524,090 Current Liabilities Accrued expenses and other current liabilities 246,210 252,842 Taxes payable (deductible) 363,484 (47,920) Lease liabilities - current — 740,753 Current liabilities of discontinued operations — 8,421,098 Total Current Liabilities 609,694 9,366,773 Lease liabilities - non-current — 13,498 Total Liabilities 609,694 9,380,271 Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Net revenues 1,759,941 5,944,541 3,510,252 Net (loss) income (24,258,182) (12,532,634) 1,420,897 Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Net cash provided by (used in) operating activities 21,401,699 (65,068,631) 721,269 Net cash provided by (used in) investing activities 407,419 46,074,236 (51,541,988) Net cash provided by (used in) financing activities (13,127,699) 123,671 — |
Schedule of disaggregation of revenue | Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Revenue Commission service 82,054 — — Recommendation service — 3,754,738 — Interest income 1,690,448 3,043,096 3,552,759 Other — 161,538 184,968 Total revenues 1,772,502 6,959,372 3,737,727 Tax and surcharges (17,567) (44,898) (42,510) Net Revenues 1,754,935 6,914,474 3,695,217 |
Schedule of the depreciation of property, equipment and software recognized | Property, equipment and software acquired are stated at cost. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives: Useful life Office equipment 3-5 years Software 5 years |
Schedule of foreign currency translation rates | Fiscal year 2021 Fiscal year 2020 US Exchange Rate Year-end RMB 6.5518 7.0808 Year average RMB 6.7834 6.9637 |
DISCONTINUED OPERATION (Tables)
DISCONTINUED OPERATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
DISCONTINUED OPERATION | |
Schedule of discontinued operations | The results of discontinued operations for years ended March 31, 2021, 2020 and 2019 are as follows: For the years ended March 31, 2021 2020 2019 USD USD USD Net Revenues 545,718 4,520,585 57,635,286 Operating costs and development 8,082,165 24,942,630 45,348,331 (Loss) income from discontinued operations (7,536,447) (20,422,045) 12,286,955 Other income (expense), net 1,097,265 365,927 1,926,334 (Loss) income before tax (6,439,182) (20,056,118) 14,213,289 Income tax provision 367 3,778,776 1,064,960 Net (loss) income from discontinued operations, net of tax (6,439,549) (23,834,894) 13,148,329 Gain on sale of discontinued operations, net of taxes 3,164,802 — — Net loss from disposition subsidiaries (3,274,747) (23,834,894) 13,148,329 Assets and liabilities of the discontinued operations are as follows: March 31, 2020 USD Cash and cash equivalents 4,257,104 Prepayments and other assets 771,431 Loan receivables-current, net of allowance 1,564,288 Amount due from related parties 2,093,684 Total Current Assets of Discontinued Operations 8,686,507 Loans receivable- non-current, net of allowance 2,908,597 Property, equipment and software, net 797,975 Right-of-use assets 79,760 Total Non-Current Assets of Discontinued Operations 3,786,332 Total Assets of Discontinued Operations 12,472,839 Accrued expenses and other current liabilities 1,768,816 Deferred revenue-current 220,910 Lease liabilities 37,287 Taxes payable 6,394,085 Total liabilities of Discontinued Operations 8,421,098 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivable, net | As of As of March 31, 2021 March 31, 2020 USD USD Accounts receivable 96,226 64,678 Allowance for uncollectible accounts receivable (67,864) (62,794) Accounts receivable, net 28,362 1,884 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
LOANS RECEIVABLE, NET | |
Schedule of loans receivable, net | As of As of March 31, 2021 March 31, 2020 USD USD Loans receivable 44,660,186 41,713,970 Allowance for uncollectible loans receivable (39,172,141) (15,017,029) Loans receivable, net 5,488,045 26,696,941 Loans receivable, net – current 5,488,045 12,626,200 Loans receivable, net – non-current — 14,070,741 |
Schedule of movement of allowance for uncollectible loans receivable | Year ended Year ended March 31, 2021 March 31, 2020 USD USD Balance at beginning of the year 15,017,029 1,083,385 Provision for allowance of uncollectible loans receivable 22,159,416 14,225,450 Foreign currency translation adjustments 1,995,696 (291,806) Balance at end of the year 39,172,141 15,017,029 |
PREPAYMENTS AND OTHER ASSETS (T
PREPAYMENTS AND OTHER ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
PREPAYMENTS AND OTHER ASSETS | |
Schedule of prepayment and other assets | As of As of March 31, 2021 March 31, 2020 USD USD Rental and other deposits 252,394 230,073 Prepayments to suppliers and others 309,164 146,540 Interest receivable 11,746 25,317 Staff advances 31,220 24,207 Total prepayments and other assets 604,524 426,137 |
OTHER RECEIVABLE (Tables)
OTHER RECEIVABLE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
OTHER RECEIVABLE | |
Schedule of other receivable | As of As of March 31, 2021 March 31, 2020 USD USD Other Receivable 10,368,959 31,846,684 Other receivable - current 8,872,838 23,609,338 Other receivable - non-current 1,496,121 8,237,346 |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |
Schedule of property, equipment and software, net | As of As of March 31, 2021 March 31, 2020 Cost: USD USD Office equipment 131,967 103,345 Vehicle — 35,182 Total 131,967 138,527 Less: Accumulated depreciation (65,080) (45,695) Property, equipment and software, net 66,887 92,832 |
LONG-TERM INVESTMENTS, NET (Tab
LONG-TERM INVESTMENTS, NET (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
LONG-TERM INVESTMENTS, NET | |
Schedule of long-term investments, net | As of As of March 31, 2021 March 31, 2020 USD USD Investments in equity security without readily determinable fair value Phoenix Intelligent Credit Group Ltd (“Phoenix Intelligent Credit”) (a) 29,189,836 29,189,836 Musketeer Group Inc. (“Musketeer”) (b) 1,600,000 1,600,000 30,789,836 30,789,836 Impairment on investments (30,789,836) (29,189,836) Long term investments, net — 1,600,000 (a) On January 8, 2019, the Company signed an agreement to acquire a 5.88% equity stake in Phoenix Intelligent Credit Group Ltd (“Phoenix Intelligent Credit”), a wholly owned subsidiary of Phoenix Financial Group Ltd (“Phoenix Finance”), which is unrelated to the Company, and operator of one of China’s leading peer-to-peer lending platforms, for a total consideration of approximately US$29 million (RMB 200 million). The acquisition was completed as of March 31, 2019 and the Company had an acquisition price payable to Phoenix Finance in the amount of US$14,289,371 as of March 31, 2019, which was fully paid in April 2019. Pursuant to the investment agreement, such investment is redeemable at the option of the Company if certain future performance condition cannot be met. The Company accounted the investment as investment in an equity security without readily determinable fair value. In light of the significant change in the regulatory environment in the PRC related to the peer-to-peer lending industry and the impact of COVID-19 on Phoenix Intelligent Credit, the Company recognized a full impairment of this investment as of March 31, 2021 and 2020. (b) On August 9, 2018, the Company acquired a 19.99% equity stake in Musketeer Group Inc. (“Musketeer”), an Indonesian online lending platform that offers consumption installment loans, for approximately US$1.6 million. The investment was accounted for using the cost method because the Company does not have any significant influence over Musketeer. Since Musketeer is a start-up company in its early stage, there was no readily determinable fair value. On August 14, 2019, Musketeer completed its registration for a peer-to-peer (P2P) lending platform with the Indonesian Financial Services Authority (OJK). In light of the significant changes of market conditions and the impact of COVID-19 in Indonesia, the Company recognized full impairment of this investment as of March 31,2021. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of As of March 31, 2021 March 31, 2020 USD USD Accrued payroll and benefits 293,324 342,485 Professional fees and other accrued expenses 849,183 807,114 1,142,507 1,149,599 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
TAXES PAYABLE | |
Schedule of taxes payable | As of As of March 31, 2021 March 31, 2020 USD USD Income taxes payable 419,709 — VAT receivable (117,336) (43,361) Other taxes payable 309 — Total taxes payable (receivable) 302,682 (43,361) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES | |
Schedule of components of the income tax expenses (benefit) | Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Current 482,976 446,769 853,970 Deferred — 43,186 (46,260) Total 482,976 489,955 807,710 |
Schedule of net deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities | As of As of March 31, 2021 March 31, 2020 USD USD Advertising expenses — 67,925 Provision for loan loss 5,539,854 3,754,257 Provision for accounts receivable and contract assets — 15,698 Net operating loss carry forwards 1,004,821 422,446 Total deferred tax assets 6,544,675 4,260,326 Less: Valuation allowance (6,544,675) (4,260,326) Total net deferred tax assets — — |
Schedule of reconciliation of the PRC statutory rates to the company's effective tax rate | Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 PRC Income tax statutory rate (25.0) % (25.0) % (25.0) % Effect of tax holiday and preferential tax rate 1.0 % — — Non-deductible foreign losses 4.8 % 18.5 % 33.0 % Change in valuation allowance 21.1 % 9.1 % — % Non-deductible expenses and others (0.3) % (1.5) % 3.8 % Effective tax rate 1.6 % 1.1 % 11.8 % |
EARNINGS (LOSS) PER SHARE ("E_2
EARNINGS (LOSS) PER SHARE ("EPS") (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
EARNINGS (LOSS) PER SHARE ("EPS") | |
Schedule of computation of the basic and diluted net earnings (loss) per share | Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2019 USD USD USD Numerator: Net (loss) from continuing operation (31,552,242) (47,363,485) (7,615,748) Net (loss) income from discontinued operation (3,274,747) (23,834,894) 13,148,329 Net (loss) income (34,826,989) (71,198,379) 5,532,581 Denominator: Weighted average number of ordinary shares outstanding-basic 48,837,977 48,757,199 48,693,162 Weighted average number of dilutive potential ordinary shares from share options — — 4,219,664 Weighted average number of ordinary shares outstanding-diluted 48,837,977 48,757,199 52,912,826 Basic (loss) income per common share (0.71) (1.46) 0.11 Diluted (loss) income per common share (0.71) (1.46) 0.10 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
SHARE-BASED COMPENSATION | |
Schedule of stock option shares activities under the Company's 2016 Equity Incentive Plan | The following table sets forth the stock option shares activities under the Company’s 2016 Equity Incentive Plan for the years ended March 31, 2021, 2020 and 2019. Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life in Grant Date Intrinsic options Price Years Fair Value Value USD USD USD Outstanding, March 31, 2018 6,184,000 1.28 2 3,441,460 62,025,520 Number of Granted 208,400 8.6 2 791,920 — Number of Exercise (1,127,853) 1.03 — (627,662) — Number of Forfeit (278,469) 1.31 — (201,891) — Outstanding, March 31, 2019 4,986,078 1.18 1 3,403,827 7,954,959 Number of Exercise (320,020) 1.03 1 (185,612) — Number of Expired, forfeited or cancelled (345,104) 3.73 — (237,392) — Outstanding, March 31, 2020 4,320,954 1.01 0.4 2,980,823 — Number of Exercise — Number of Expired, forfeited or cancelled (3,487,064) — (3,332,614) — Outstanding, March 31, 2021 833,890 1.23 — 1,022,903 — Vested and exercisable, March 31, 2019 4,861,604 0.99 1 2,930,826 7,954,959 Vested and exercisable, March 31, 2020 4,298,787 0.97 — 2,646,781 — Vested and exercisable, March 31, 2021 833,890 1.23 — 1,022,903 — |
Schedule of Company's RSUs activities under all incentive plans | The following table summarized the Company’s RSUs activities under all incentive plans (in US$, except shares): Number of Restricted Shares Weighted-average grant date fair value USD Outstanding at March 31, 2018 — Granted 616,700 9.26 Vested (538,900) 9.26 Forfeited — — Outstanding at March 31, 2019 77,800 9.26 Granted Vested (38,900) Forfeited (3,333) Outstanding at March 31, 2020 35,567 Granted — — Vested (32,234) Forfeited (3,333) — Outstanding at March 31, 2021 — — |
BUSINESS DESCRIPTION (Details)
BUSINESS DESCRIPTION (Details) | Mar. 31, 2021 |
Hexindai Hong Kong Limited ("HK Hexindai") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100.00% |
Beijing Hexin Yongheng Technology Development Co., Ltd ("WOFE") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100.00% |
Tianjin Haohongyuan Technology Co., Ltd (Tianjin Haohongyuan") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100.00% |
HX Asia Investment Limited | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100.00% |
HX China Investment Limited | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100.00% |
Hexin Investment Private Limited | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100.00% |
GOING CONCERN (Details)
GOING CONCERN (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
GOING CONCERN | |||
Net loss | $ 34,826,989 | $ 71,198,379 | $ (5,532,581) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Mar. 31, 2021USN ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of loan agreements | 3 |
Term of the loan (in years) | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated VIE (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current Assets: | |||
Cash and cash equivalents | $ 15,128,719 | $ 6,668,104 | |
Accounts receivable and contract assets, net | 28,362 | 1,884 | |
Loans receivable, net - current | 5,488,045 | 12,626,200 | |
Prepayments and other assets | 604,524 | 426,137 | |
Current assets of discontinued operations | 8,686,507 | ||
TOTAL CURRENT ASSETS | 30,122,488 | 52,018,170 | |
Loans receivable, net - non-current | 14,070,741 | ||
Property, equipment and software, net | 66,887 | 92,832 | |
Right-of-use assets | 0 | 670,738 | |
Other receivable - non-current | 1,496,121 | 8,237,346 | |
Non-current assets of discontinued operations | 3,786,332 | ||
TOTAL ASSETS | 31,685,496 | 80,476,159 | |
Current Liabilities | |||
Accrued expenses and other current liabilities | 1,142,507 | 1,149,599 | |
Taxes payable (deductible) | 302,682 | (43,361) | |
Lease liabilities - current | 740,752 | ||
Current liabilities of discontinued operations | 8,421,098 | ||
TOTAL CURRENT LIABILITIES | 14,413,971 | 12,361,772 | |
Lease liabilities - non-current | 13,498 | ||
TOTAL LIABILITIES | 14,413,971 | 32,375,270 | |
Net revenues | 1,754,935 | 6,914,474 | $ 3,695,217 |
Net (loss) income | (34,826,989) | (71,198,379) | 5,532,581 |
Net cash provided by (used in) operating activities | 10,058,470 | (58,278,734) | (1,731,075) |
Net cash provided by (used in) investing activities | (662) | 12,775,363 | (68,106,557) |
Net cash provided by (used in) financing activities | (9,037,223) | (1,552,185) | (29,377) |
Consolidated VIEs | |||
Current Assets: | |||
Cash and cash equivalents | 10,246,074 | 1,119,651 | |
Accounts receivable and contract assets, net | 28,362 | 1,884 | |
Loans receivable, net - current | 5,488,045 | 12,626,200 | |
Prepayments and other assets | 381,297 | 303,710 | |
Other receivable - current | 8,872,838 | 23,609,338 | |
Amounts due from related parties | 13,936,237 | 318,811 | |
Current assets of discontinued operations | 8,686,507 | ||
TOTAL CURRENT ASSETS | 38,952,853 | 46,666,101 | |
Loans receivable, net - non-current | 14,070,741 | ||
Property, equipment and software, net | 64,268 | 92,832 | |
Right-of-use assets | 670,738 | ||
Other receivable - non-current | 1,496,121 | 8,237,346 | |
Non-current assets of discontinued operations | 3,786,332 | ||
TOTAL ASSETS | 40,513,242 | 73,524,090 | |
Current Liabilities | |||
Accrued expenses and other current liabilities | 246,210 | 252,842 | |
Taxes payable (deductible) | 363,484 | (47,920) | |
Lease liabilities - current | 740,753 | ||
Current liabilities of discontinued operations | 8,421,098 | ||
TOTAL CURRENT LIABILITIES | 609,694 | 9,366,773 | |
Lease liabilities - non-current | 13,498 | ||
TOTAL LIABILITIES | 609,694 | 9,380,271 | |
Net revenues | 1,759,941 | 5,944,541 | 3,510,252 |
Net (loss) income | (24,258,182) | (12,532,634) | 1,420,897 |
Net cash provided by (used in) operating activities | 21,401,699 | (65,068,631) | 721,269 |
Net cash provided by (used in) investing activities | 407,419 | 46,074,236 | $ (51,541,988) |
Net cash provided by (used in) financing activities | $ (13,127,699) | $ 123,671 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Total amount of incentives | $ 159,996 | ||
Recommendation service | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Revenue | 0 | $ 3,754,738 | |
Interest income | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Revenue | $ 1,690,448 | $ 3,043,096 | $ 3,552,759 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of revenue (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Tax and surcharges | $ (17,567) | $ (44,898) | $ (42,510) |
Net Revenues | 1,754,935 | 6,914,474 | 3,695,217 |
Retained earnings | (36,256,612) | (1,429,623) | |
Adjustment | |||
Disaggregation of Revenue [Line Items] | |||
Net Revenues | 1,772,502 | 6,959,372 | 3,737,727 |
ASU 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Net Revenues | 1,754,935 | 6,914,474 | 3,695,217 |
Commission service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 82,054 | ||
Recommendation service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 3,754,738 | |
Interest income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,690,448 | 3,043,096 | 3,552,759 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 161,538 | $ 184,968 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of adoption of ASU 606 (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure related to modified retrospective adoption of ASC 606 | |||
Net revenues | $ 1,754,935 | $ 6,914,474 | $ 3,695,217 |
Net (loss) income | (34,826,989) | (71,198,379) | 5,532,581 |
Equity: | |||
Deficit | (36,256,612) | (1,429,623) | |
ASU 2014-09 | |||
Disclosure related to modified retrospective adoption of ASC 606 | |||
Net revenues | $ 1,754,935 | $ 6,914,474 | $ 3,695,217 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts receivable, contract assets and allowance for uncollectible accounts and Loans receivable (Details) | 12 Months Ended | ||||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USN ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USN ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Guarantor Obligations [Line Items] | |||||||
Accounts receivable | $ 96,226 | $ 64,678 | |||||
Allowance for uncollectible accounts receivable | 67,864 | 62,794 | |||||
Allowance for uncollectible loan receivable | $ 39,172,141 | $ 39,172,141 | $ 15,017,029 | $ 15,017,029 | $ 1,083,385 | ||
Total amount of new loans issued | $ 0 | $ 74,003 | |||||
Minimum | |||||||
Guarantor Obligations [Line Items] | |||||||
Terms of loans (in months) | 12 months | 12 months | |||||
Interest rate (in percentage) | 6.00% | 6.00% | |||||
Maximum | |||||||
Guarantor Obligations [Line Items] | |||||||
Terms of loans (in months) | 36 months | 36 months | |||||
Interest rate (in percentage) | 8.00% | 8.00% |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, equipment and software, net (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Office equipment | Minimum | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |
Estimated Useful Life | 3 years |
Office equipment | Maximum | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |
Estimated Useful Life | 5 years |
Software | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |
Estimated Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of long lived assets, Advertising and promotion expenses and Research and development costs and Lease (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
Advertising and promotion expenses | 176,193 | 736,522 | 1,080,905 |
Research and development costs | 441,405 | 117,942 | $ 0 |
ROU asset | 0 | $ 670,738 | |
Lease liabilities | 0 | ||
Penalties for lease termination | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income taxes and segment reporting (Details) | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Taxable income was generated outside the PRC | $ 0 | $ 0 | $ 0 |
Valuation allowance | $ 0 | ||
Number of operating segments | 1 | ||
Number of reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Significant Risks and Uncertainties (Details) | 12 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 15,128,719 | $ 6,668,104 | ||
Upper limit amount of deposits at each bank covered by insurance | ¥ 500,000 | 76,315 | ||
Cash and cash equivalents uninsured | $ 13,656,927 | |||
RMB | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 15,128,719 | $ 6,668,104 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign currency translation (Details) - ¥ / $ | Mar. 31, 2021 | Mar. 31, 2020 |
Foreign currency translation | ||
Year-end RMB | 0.15263 | 0.14123 |
Year average RMB | 0.14742 | 0.14360 |
DISCONTINUED OPERATION (Details
DISCONTINUED OPERATION (Details) ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 16, 2020CNY (¥) | Dec. 16, 2020USD ($) | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Net (loss) income from discontinued operations, net of tax | $ (6,439,549) | $ (23,834,894) | $ 13,148,329 | ||
Gain on sale of discontinued operations, net of taxes | 3,164,802 | ||||
Total loss from discontinued operations | (3,274,747) | (23,834,894) | 13,148,329 | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||
Total Current Assets of Discontinued Operations | 8,686,507 | ||||
Total Non-Current Assets of Discontinued Operations | 3,786,332 | ||||
Total liabilities of Discontinued Operations | 8,421,098 | ||||
Discontinued operations held for sale | Hexin E-Commerce | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration | ¥ 5 | $ 726,781 | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Net Revenues | 545,718 | 4,520,585 | 57,635,286 | ||
Operating costs and development | 8,082,165 | 24,942,630 | 45,348,331 | ||
(Loss) income from discontinued operations | (7,536,447) | (20,422,045) | 12,286,955 | ||
Other income (expense), net | 1,097,265 | 365,927 | 1,926,334 | ||
(Loss) income before tax | (6,439,182) | (20,056,118) | 14,213,289 | ||
Income tax provision | 367 | 3,778,776 | 1,064,960 | ||
Net (loss) income from discontinued operations, net of tax | (6,439,549) | (23,834,894) | 13,148,329 | ||
Gain on sale of discontinued operations, net of taxes | 3,164,802 | ||||
Total loss from discontinued operations | $ (3,274,747) | (23,834,894) | $ 13,148,329 | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||
Cash and cash equivalents | 4,257,104 | ||||
Prepayments and other assets | 771,431 | ||||
Loan receivables-current, net of allowance | 1,564,288 | ||||
Amount due from related parties | 2,093,684 | ||||
Total Current Assets of Discontinued Operations | 8,686,507 | ||||
Loans receivable-non-current, net of allowance | 2,908,597 | ||||
Property, equipment and software, net | 797,975 | ||||
Right-of-use assets | 79,760 | ||||
Total Non-Current Assets of Discontinued Operations | 3,786,332 | ||||
Total Assets of Discontinued Operations | 12,472,839 | ||||
Accrued expenses and other current liabilities | 1,768,816 | ||||
Deferred revenue-current | 220,910 | ||||
Lease liabilities | 37,287 | ||||
Taxes payable | 6,394,085 | ||||
Total liabilities of Discontinued Operations | $ 8,421,098 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
ACCOUNTS RECEIVABLE, NET | ||
Accounts receivable | $ 96,226 | $ 64,678 |
Allowance for uncollectible accounts receivable | (67,864) | (62,794) |
Accounts receivable, net | $ 28,362 | $ 1,884 |
LOANS RECEIVABLE, NET (Details)
LOANS RECEIVABLE, NET (Details) | Mar. 31, 2021USN ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USN ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
LOANS RECEIVABLE, NET | |||||
Loans receivable | $ 44,660,186 | $ 41,713,970 | |||
Allowance for uncollectible loans receivable | $ (39,172,141) | (39,172,141) | $ (15,017,029) | (15,017,029) | $ (1,083,385) |
Loans receivable, net | 5,488,045 | 26,696,941 | |||
Loans receivable, net - current | $ 5,488,045 | 12,626,200 | |||
Loans receivable, net - non-current | $ 14,070,741 |
LOANS RECEIVABLE, NET - Movemen
LOANS RECEIVABLE, NET - Movement of allowance for uncollectible loans receivable (Details) | 12 Months Ended | ||
Mar. 31, 2021USN ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
LOANS RECEIVABLE, NET | |||
Beginning balance | $ 15,017,029 | $ 15,017,029 | $ 1,083,385 |
Provision for allowance of uncollectible loans receivable | 22,159,416 | 14,225,450 | |
Foreign currency translation adjustments | 1,995,696 | (291,806) | |
Ending balance | $ 39,172,141 | $ 39,172,141 | $ 15,017,029 |
PREPAYMENTS AND OTHER ASSETS (D
PREPAYMENTS AND OTHER ASSETS (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
PREPAYMENTS AND OTHER ASSETS | ||
Rental and other deposits | $ 252,394 | $ 230,073 |
Prepayments to suppliers and others | 309,164 | 146,540 |
Interest receivable | 11,746 | 25,317 |
Staff advances | 31,220 | 24,207 |
Total prepayments and other assets | $ 604,524 | $ 426,137 |
OTHER RECEIVABLE (Details)
OTHER RECEIVABLE (Details) - USD ($) | Mar. 31, 2022 | May 31, 2022 | May 31, 2020 | Nov. 30, 2019 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
OTHER RECEIVABLE | |||||||
Other Receivable | $ 10,368,959 | $ 31,846,684 | |||||
Other receivable - current | 8,872,838 | 23,609,338 | |||||
Other receivable - non-current | $ 1,496,121 | $ 8,237,346 | |||||
Payments for Deposits | $ 15,500,000 | $ 30,900,000 | |||||
Refund Of Deposits Receivable | $ 6,750,000 | $ 4,500,000 | |||||
Remaining balance refund on monthly basis in next two years | $ 693,905 | ||||||
Period For Refund Of Remaining Balance Of Deposits Receivable On Monthly Basis | 2 years | ||||||
Annual Interest Charge On Refund Receivable On Deposits | 2.00% | ||||||
Registered Capital Of Guarantee Company | $ 142,900,000 | ||||||
Deposits Refund, Amount | $ 26,200,000 | ||||||
Deposits Refund, Percentage | 76.00% |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||
Total | $ 131,967 | $ 138,527 | |
Less: Accumulated depreciation | (65,080) | (45,695) | |
Property, equipment and software, net | 66,887 | 92,832 | |
Depreciation and amortization | 15,161 | 120,520 | $ 17,233 |
Office equipment | |||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||
Total | $ 131,967 | 103,345 | |
Vehicle | |||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | |||
Total | $ 35,182 |
LONG-TERM INVESTMENTS, NET (Det
LONG-TERM INVESTMENTS, NET (Details) ¥ in Millions | 12 Months Ended | |||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jan. 08, 2019CNY (¥) | Jan. 08, 2019USD ($) | Aug. 09, 2018USD ($) | |
LONG TERM INVESTMENTS | ||||||
Long term investments, gross | $ 30,789,836 | $ 30,789,836 | ||||
Impairment on investments | (30,789,836) | (29,189,836) | ||||
Long-term investments, net | 1,600,000 | |||||
Impairment charge on long-term investments | 1,600,000 | 29,189,836 | ||||
Phoenix Intelligent Credit | ||||||
LONG TERM INVESTMENTS | ||||||
Long term investments, gross | 29,189,836 | 29,189,836 | ||||
Equity stake acquired (as a percentage) | 5.88% | 5.88% | ||||
Total consideration | ¥ 200 | $ 29,000,000 | ||||
Consideration payable | $ 14,289,371 | |||||
Musketeer | ||||||
LONG TERM INVESTMENTS | ||||||
Long term investments, gross | $ 1,600,000 | $ 1,600,000 | ||||
Equity stake acquired (as a percentage) | 19.99% | |||||
Total consideration | $ 1,600,000 |
RIGHT OF USE LEASE ASSETS (Deta
RIGHT OF USE LEASE ASSETS (Details) - USD ($) | Apr. 01, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease, practical expedients, package [true false] | true | |||
Lease, practical expedient, use of hindsight [true false] | false | |||
Deficit | $ (36,256,612) | $ (1,429,623) | ||
ROU asset | 0 | 670,738 | ||
Lease liability | 0 | |||
Total lease expenses | 398,709 | 1,976,738 | ||
Total cash paid for operating leases | 398,709 | 2,100,320 | ||
Penalties for lease termination | $ 0 | |||
ASU 2016-02 | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deficit | $ 0 | |||
ROU asset | $ 2,559,646 | |||
Lease liability | $ 2,559,646 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Accrued payroll and benefits | $ 293,324 | $ 342,485 |
Professional fees and other accrued expenses | 849,183 | 807,114 |
Accrued expenses and other liabilities, net | $ 1,142,507 | $ 1,149,599 |
NOTE PAYABLE (Details)
NOTE PAYABLE (Details) - USD ($) | Dec. 15, 2020 | Dec. 14, 2020 | Mar. 29, 2019 | Mar. 31, 2021 | Mar. 31, 2020 |
NOTE PAYABLE | |||||
Note payable | $ 20,000,000 | ||||
Repayments of Senior Debt | $ 10,000,000 | ||||
Senior unsecured note | |||||
NOTE PAYABLE | |||||
Loan principal amount | $ 20,000,000 | ||||
Term of loan (in years) | 3 years | ||||
Fixed interest rate | 12.00% | ||||
Note payable | 10,000,000 | 20,000,000 | |||
Interest expense | $ 2,100,000 | $ 2,400,000 | |||
Senior unsecured note | Amendment and Supplemental Agreement | |||||
NOTE PAYABLE | |||||
Principal amount to be repaid | $ 10,000,000 | ||||
Threshold period for principal and interest repayment from effective date of agreement | 5 days | ||||
Repayments of Senior Debt | $ 5,000,000 | $ 5,000,000 | |||
Interest paid | $ 513,333 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details) | Oct. 15, 2020USD ($) | Mar. 31, 2021CNY (¥) | Mar. 31, 2021USD ($) | Dec. 16, 2020CNY (¥) | Dec. 16, 2020USD ($) | Mar. 31, 2020USD ($) |
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||
Borrowings from related party | ¥ 4,880,000 | $ 875,098 | ||||
Amounts due to related parties | $ 2,968,782 | $ 2,093,684 | ||||
Mr. Xiaobo An | Lease agreement | ||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||
Lease charges | $ 0 | |||||
Lease term (in years) | 1 year | |||||
Hexin E-Commerce | Discontinued operations held for sale | ||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||
Cash consideration | ¥ 5,000,000 | $ 726,781 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
EMPLOYEE BENEFITS | |||
Amount of Contributions | $ 435,689 | $ 399,104 | $ 35,469 |
TAXES PAYABLE (Details)
TAXES PAYABLE (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
TAXES PAYABLE | ||
Income taxes payable | $ 419,709 | |
VAT receivable | (117,336) | $ (43,361) |
Other taxes payable | 309 | |
Total taxes payable (receivable) | $ 302,682 | $ (43,361) |
INCOME TAXES (Details)
INCOME TAXES (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
INCOME TAX | |||
Statutory tax rate (as a percent) | 25.00% | 25.00% | 25.00% |
PRC | |||
INCOME TAX | |||
Statutory tax rate (as a percent) | 25.00% | ||
PRC | Hexin E Digital | High Technology Enterprises | |||
INCOME TAX | |||
Preferential tax rate (as a percent) | 15.00% |
INCOME TAXES - Components of th
INCOME TAXES - Components of the income tax provision (benefit) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
INCOME TAXES | |||
Current | $ 482,976 | $ 446,769 | $ 853,970 |
Deferred | 43,186 | (46,260) | |
Total | $ 482,976 | $ 489,955 | $ 807,710 |
INCOME TAXES - Net deferred tax
INCOME TAXES - Net deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
INCOME TAXES | |||
Advertising expenses | $ 67,925 | ||
Provision for loan loss | $ 5,539,854 | 3,754,257 | |
Provision for accounts receivable and contract assets | 15,698 | ||
Net operating loss carry forwards | 1,004,821 | 422,446 | |
Total deferred tax assets | 6,544,675 | 4,260,326 | |
Less: Valuation allowance | $ (6,544,675) | $ (4,260,326) | $ 0 |
INCOME TAXES - Reconciles the P
INCOME TAXES - Reconciles the PRC statutory rates to the Company's effective tax rate (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
INCOME TAXES | |||
PRC Income tax statutory rate | (25.00%) | (25.00%) | (25.00%) |
Effect of tax holiday and preferential tax rate | 1.00% | ||
Non-deductible foreign losses | 4.80% | 18.50% | 33.00% |
Change in valuation allowance | 21.10% | 9.10% | |
Non-deductible expenses and others | (0.30%) | (1.50%) | 3.80% |
Effective tax rate | 1.60% | 1.10% | 11.80% |
INCOME TAXES - Others (Details)
INCOME TAXES - Others (Details) | Jul. 23, 2018$ / shares | Jul. 19, 2018 | Mar. 31, 2021CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) |
INCOME TAX | ||||||
Period of statue of limitation | 3 years | 3 years | ||||
Period of statue of limitation in the case of underpayment of income taxes | 5 years | 5 years | ||||
Income tax liability, maximum amount of underpayment | ¥ 100,000 | $ 15,263 | ||||
Statue of limitation related to transfer pricing adjustment | 10 years | 10 years | ||||
Undistributed earnings of the Company's PRC subsidiaries and VIEs | $ 36,000,000 | $ 75,000,000 | ||||
Withholding tax rate on dividend distributed by FIE | 10.00% | 10.00% | ||||
Common stock, dividends declared (in dollars per share) | $ / shares | $ 0.40 | |||||
Aggregated dividend payments | $ 19,547,532 | |||||
Withholding tax incurred and paid | 1,300,000 | |||||
Withholding income taxes for undistributed profits of the Company's subsidiaries | $ 0 | $ 0 | ||||
PRC | ||||||
INCOME TAX | ||||||
Aggregated dividend payments | $ 13,200,000 | |||||
Annual dividend | ||||||
INCOME TAX | ||||||
Common stock, dividends declared (in dollars per share) | $ / shares | 0.27 | |||||
American depositary shares ("ADS") | ||||||
INCOME TAX | ||||||
Common stock, dividends declared (in dollars per share) | $ / shares | 0.40 | |||||
American depositary shares ("ADS") | Annual dividend | ||||||
INCOME TAX | ||||||
Common stock, dividends declared (in dollars per share) | $ / shares | $ 0.27 | |||||
Minimum | ||||||
INCOME TAX | ||||||
Rate of withholding tax for dividends paid by an FIE in China to its immediate holding company in Hong Kong under specified conditions | 10.00% | 10.00% | ||||
Ownership percentage of the FIE by foreign investors to qualify for withholding tax rate limit for dividends paid by an FIE in China to its immediate holding company in Hong Kong | 25.00% | 25.00% | ||||
Percentage of dividend (in percentage) | 15.00% | |||||
Maximum | ||||||
INCOME TAX | ||||||
Rate of withholding tax for dividends paid by an FIE in China to its immediate holding company in Hong Kong under specified conditions | 5.00% | 5.00% | ||||
Ownership percentage of the FIE by foreign investors to qualify for withholding tax rate limit for dividends paid by an FIE in China to its immediate holding company in Hong Kong | 25.00% | 25.00% | ||||
Percentage of dividend (in percentage) | 25.00% |
EARNINGS (LOSS) PER SHARE ("E_3
EARNINGS (LOSS) PER SHARE ("EPS") (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | |||
Net (loss) from continuing operations | $ (31,552,242) | $ (47,363,485) | $ (7,615,748) |
Net (loss) income from discontinued operations | (3,274,747) | (23,834,894) | 13,148,329 |
NET (LOSS) INCOME | $ (34,826,989) | $ (71,198,379) | $ 5,532,581 |
Denominator: | |||
Weighted average number of ordinary shares outstanding-basic | 48,837,977 | 48,757,199 | 48,693,162 |
Weighted average number of dilutive potential ordinary shares from share options | 4,219,664 | ||
Weighted average number of ordinary shares outstanding-diluted | 48,837,977 | 48,757,199 | 52,912,826 |
Basic net (loss) income per share | $ (0.71) | $ (1.46) | $ 0.11 |
Diluted (in dollars per share) | $ (0.71) | $ (1.46) | $ 0.10 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) | Aug. 24, 2020 | Mar. 31, 2021$ / sharesshares | Aug. 23, 2020 | Mar. 31, 2020$ / sharesshares |
SHAREHOLDERS' EQUITY | ||||
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||
Ordinary shares, par value (in US dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares issued (in shares) | 50,016,457 | 49,984,223 | ||
Ordinary shares, shares outstanding (in shares) | 48,850,574 | 48,818,340 | ||
ADS ratio | 3 | 1 | ||
Reverse ADS split ratio | 3 |
SHARE-BASED COMPENSATION - 2016
SHARE-BASED COMPENSATION - 2016 Equity Incentive Plan (Details) | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Jul. 23, 2018$ / shares | Jul. 22, 2018$ / shares | Mar. 31, 2018USD ($)$ / sharesshares | Apr. 01, 2016$ / sharesshares | Mar. 31, 2021USD ($)installment$ / sharesshares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares |
SHARE-BASED COMPENSATION | |||||||||
Option granted (in dollars per shares) | $ 1.28 | $ 0.88 | |||||||
Common stock, dividends declared (in dollars per share) | 0.40 | ||||||||
Weighted Average Exercise Price | |||||||||
Option granted (in dollars per shares) | 1.28 | $ 0.88 | |||||||
American depositary shares ("ADS") | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Common stock, dividends declared (in dollars per share) | 0.40 | ||||||||
2016 Equity Incentive Plan | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Option granted (in shares) | shares | 6,312,000 | 208,400 | |||||||
Option granted (in dollars per shares) | $ 1.28 | $ 8.6 | |||||||
Common stock, dividends declared (in dollars per share) | 0.40 | ||||||||
Number of installments for vested and become exercisable | installment | 3 | ||||||||
Percentage of remaining options to be vested | 0.67% | ||||||||
Options vested remaining installments | installment | 2 | ||||||||
Maximum contractual term (in years) | 4 years | ||||||||
Threshold for the unvested options to expire (in years) | 2 years | ||||||||
Stock options, vesting period (in years) | 3 years | ||||||||
Fair value of options granted to employees | |||||||||
Fair market value per share | $ 1.41 | ||||||||
Exercise price per share | $ 1.28 | ||||||||
Risk-free interest rate | 1.81% | ||||||||
Dividend yield | 0.00% | ||||||||
Life of option | 4 years | ||||||||
Volatility | 47.40% | ||||||||
Number of options | |||||||||
Outstanding at beginning of year (in shares) | shares | 4,320,954 | 4,986,078 | 6,184,000 | ||||||
Option granted (in shares) | shares | 6,312,000 | 208,400 | |||||||
Number of Exercise (in shares) | shares | (320,020) | (1,127,853) | (320,020) | (1,127,853) | |||||
Option Expired, forfeited or cancelled (in shares) | shares | (3,487,064) | (345,104) | (278,469) | ||||||
Outstanding at end of year (in shares) | shares | 4,320,954 | 4,986,078 | 6,184,000 | 833,890 | 4,320,954 | 4,986,078 | |||
Vested and exercisable (in shares) | shares | 4,298,787 | 4,861,604 | 833,890 | 4,298,787 | 4,861,604 | ||||
Weighted Average Exercise Price | |||||||||
Outstanding at beginning of year (in dollars per shares) | $ 1.01 | $ 1.18 | $ 1.28 | ||||||
Option granted (in dollars per shares) | $ 1.28 | 8.6 | |||||||
Number of Exercise (in dollars per share) | $ 1.03 | $ 1.03 | 1.03 | 1.03 | |||||
Option Expired, forfeited or cancelled (in dollars per shares) | 0.96 | 3.73 | 1.31 | ||||||
Outstanding at end of year (in dollars per shares) | 1.01 | 1.18 | $ 1.28 | 1.23 | 1.01 | 1.18 | |||
Vested and exercisable (in dollars per share) | $ 0.97 | $ 0.99 | $ 1.23 | $ 0.97 | $ 0.99 | ||||
Weighted Average Remaining Life in Years | |||||||||
Option granted (in years) | 2 years | ||||||||
Number of Exercise (in years) | 1 year | ||||||||
Outstanding at end of period | 4 months 24 days | 1 year | 2 years | ||||||
Vested and exercisable (in years) | 1 year | ||||||||
Grant Date Fair Value | |||||||||
Outstanding at beginning of year | $ | $ 2,980,823 | $ 3,403,827 | $ 3,441,460 | ||||||
Option granted | $ | 791,920 | ||||||||
Number of Exercisable | $ | $ (185,612) | $ (627,662) | (185,612) | (627,662) | |||||
Option Expired, forfeited or cancelled | $ | (3,332,614) | (237,392) | (201,891) | ||||||
Outstanding at end of year | $ | $ 2,980,823 | 3,403,827 | $ 3,441,460 | 1,022,903 | 2,980,823 | 3,403,827 | |||
Vested and exercisable | $ | $ 1,022,903 | $ 2,646,781 | 2,930,826 | ||||||
Aggregate Intrinsic Value | |||||||||
Outstanding | $ | 7,954,959 | $ 62,025,520 | 7,954,959 | ||||||
Vested and exercisable | $ | $ 7,954,959 | $ 7,954,959 | |||||||
2016 Equity Incentive Plan | American depositary shares ("ADS") | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Common stock, dividends declared (in dollars per share) | $ 0.40 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
SHARE-BASED COMPENSATION | |||
Number of common stocks represented by each RSU | 1 | ||
Percentage of vesting and exercisable upon the second and third anniversary of the grant date | 0.67% | ||
Weighted- average grant date fair value | |||
Forfeiture percentage | 13.04% | 13.04% | 13.04% |
Fair value of stock option and RSU on the grant date | $ 3,500,000 | ||
Share-based compensation expense | 55,468 | $ 347,466 | $ 6,585,386 |
Unrecognized compensation cost | $ 0 | $ 64,415 | |
Restricted Stock Units | |||
SHARE-BASED COMPENSATION | |||
Vesting period | 3 years | ||
Percentage of vesting and exercisable upon the date of grant | 0.33% | ||
Number of Restricted Shares | |||
Outstanding at beginning of year (in shares) | 35,567 | 77,800 | |
Granted (in shares) | 616,700 | ||
Vested (in shares) | (32,234) | (38,900) | (538,900) |
Forfeited (in shares) | (3,333) | (3,333) | |
Outstanding at end of year (in shares) | 35,567 | 77,800 | |
Weighted- average grant date fair value | |||
Outstanding at beginning of year (in dollars per share) | $ 9.26 | $ 9.26 | |
Granted (in dollars per share) | $ 9.26 | ||
Vested (in dollars per share) | $ 9.26 | 9.26 | 9.26 |
Forfeited (in dollars per share) | 9.26 | ||
Outstanding at end of year (in dollars per share) | $ 9.26 | $ 9.26 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) | Dec. 10, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Total consideration on repurchase of shares | $ 2,667,902 | $ 1,320,468 | ||
Ads | ||||
Number of shares to be repurchased (in shares) | $ 25,000,000 | |||
Term of repurchase (in months) | 12 months | |||
Shares repurchased (in shares) | 1,165,883 | |||
Total consideration on repurchase of shares | $ 3,988,370 |
DIVIDEND (Details)
DIVIDEND (Details) - USD ($) | Jul. 23, 2018 | Jul. 19, 2018 | Mar. 31, 2019 |
Common stock, dividends declared (in dollars per share) | $ 0.40 | ||
Aggregated dividend payments | $ 19,547,532 | ||
American depositary shares ("ADS") | |||
Common stock, dividends declared (in dollars per share) | 0.40 | ||
Annual dividend | |||
Common stock, dividends declared (in dollars per share) | 0.27 | ||
Annual dividend | American depositary shares ("ADS") | |||
Common stock, dividends declared (in dollars per share) | 0.27 | ||
Special cash dividend | |||
Common stock, dividends declared (in dollars per share) | 0.13 | ||
Special cash dividend | American depositary shares ("ADS") | |||
Common stock, dividends declared (in dollars per share) | $ 0.13 | ||
Minimum | |||
Percentage of dividend (in percentage) | 15.00% | ||
Maximum | |||
Percentage of dividend (in percentage) | 25.00% |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
RESTRICTED NET ASSETS | ||
Restricted net assets | $ 86,900,000 | $ 81,000,000 |
Required percentage of net income allocated to statutory surplus reserve | 10.00% | |
Threshold percentage of statutory surplus reserves of the registered capital, used as criteria of allocation requirement | 50.00% | |
Statutory reserve | $ 469,473 | $ 430,704 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Contingencies | ||
Contingent liability | $ 0 | $ 0 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent event - Hexin Holding Limited | Jul. 13, 2021shares |
SUBSEQUENT EVENT | |
Number of shares sold by shareholders | 31,980,800 |
Number of shares owned by shareholders after sale of stock | 0 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details) | 12 Months Ended |
Mar. 31, 2021 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
Required percentage of net income allocated to statutory surplus reserve | 10.00% |
Threshold percentage of statutory surplus reserves of the registered capital, used as criteria of allocation requirement | 50.00% |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CONDENSED BALANCE SHEETS (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
ASSETS: | ||
TOTAL ASSETS | $ 31,685,496 | $ 80,476,159 |
LIABILITIES: | ||
Accrued expenses and other current liabilities | 1,142,507 | 1,149,599 |
Note payable | 20,000,000 | |
TOTAL LIABILITIES | 14,413,971 | 32,375,270 |
SHAREHOLDERS' EQUITY: | ||
Ordinary shares ($0.0001 par value, 500,000,000 shares authorized, 50,016,457 and 49,984,223 shares issued, 48,850,574 and 48,818,340 shares outstanding as of March 31, 2021 and 2020, respectively.) | 5,002 | 4,999 |
Additional paid-in capital | 60,615,048 | 60,559,583 |
Treasury stock | (3,988,370) | (3,988,370) |
Retained earnings | (36,256,612) | (1,429,623) |
Accumulated other comprehensive loss | (3,103,543) | (7,045,700) |
TOTAL SHAREHOLDERS' EQUITY | 17,271,525 | 48,100,889 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 31,685,496 | $ 80,476,159 |
Ordinary shares, par value (in US dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued (in shares) | 50,016,457 | 49,984,223 |
Ordinary shares, shares outstanding (in shares) | 48,850,574 | 48,818,340 |
Parent Company | Reportable Legal Entities | ||
ASSETS: | ||
Cash | $ 1,483,484 | $ 1,709,149 |
Prepayment and other assets | 160,450 | 5,795 |
Investments in subsidiaries, VIEs and VIEs' subsidiaries | 30,793,763 | 66,588,445 |
TOTAL ASSETS | 32,437,697 | 68,303,389 |
LIABILITIES: | ||
Accrued expenses and other current liabilities | 161,882 | 202,500 |
Note payable | 10,000,000 | 20,000,000 |
Due to related party | 5,004,290 | |
TOTAL LIABILITIES | 15,166,172 | 20,202,500 |
SHAREHOLDERS' EQUITY: | ||
Ordinary shares ($0.0001 par value, 500,000,000 shares authorized, 50,016,457 and 49,984,223 shares issued, 48,850,574 and 48,818,340 shares outstanding as of March 31, 2021 and 2020, respectively.) | 5,002 | 4,999 |
Additional paid-in capital | 49,330,571 | 60,559,583 |
Treasury stock | (3,988,370) | (3,988,370) |
Retained earnings | (26,760,239) | (1,429,623) |
Accumulated other comprehensive loss | (1,315,439) | (7,045,700) |
TOTAL SHAREHOLDERS' EQUITY | 17,271,525 | 48,100,889 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 32,437,697 | $ 68,303,389 |
Ordinary shares, par value (in US dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued (in shares) | 50,016,457 | 49,984,223 |
Ordinary shares, shares outstanding (in shares) | 48,850,574 | 48,818,340 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
General administrative expense and others | $ (27,217,613) | $ (20,488,796) | $ (3,131,550) |
Impairment on long-term investments | (1,600,000) | (29,189,836) | |
NET (LOSS) INCOME | (34,826,989) | (71,198,379) | 5,532,581 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment | 3,942,157 | (5,288,742) | (6,136,187) |
COMPREHENSIVE LOSS | (30,884,832) | (76,487,121) | (603,606) |
Parent Company | Reportable Legal Entities | |||
PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
Equity in (loss) earnings of subsidiaries, VIEs and VIEs' subsidiaries | (28,512,556) | (35,994,910) | 14,725,415 |
General administrative expense and others | (4,714,433) | (6,013,633) | (9,192,834) |
Impairment on long-term investments | (1,600,000) | (29,189,836) | |
NET (LOSS) INCOME | (34,826,989) | (71,198,379) | 5,532,581 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment | 3,942,157 | (5,288,742) | (6,136,187) |
COMPREHENSIVE LOSS | $ (30,884,832) | $ (76,487,121) | $ (603,606) |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CONDENSED STATEMENTS OF CASH FLOWS (Details) | 12 Months Ended | |||
Mar. 31, 2021CNY (¥) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net (loss) income | $ (34,826,989) | $ (71,198,379) | $ 5,532,581 | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||||
Impairment on long-term investments | 1,600,000 | 29,189,836 | ||
Share-based compensation | 55,468 | 347,466 | 6,585,386 | |
Changes in operating assets and liabilities: | ||||
Prepayments and other assets | (112,562) | 109,106 | (351,900) | |
Interest payments on unsecured senior notes and short-term bank loan | (2,114,388) | (2,413,014) | ||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 10,058,470 | (58,278,734) | (1,731,075) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (662) | 12,775,363 | (68,106,557) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Exercise of share options | 5 | 281,617 | 1,156,623 | |
Proceeds from issuance of unsecured note | 20,000,000 | |||
Repayment from subsidiaries, VIEs and VIE's subsidiaries | 925,837 | (6,653,236) | 51,419,093 | |
Repurchase of ordinary shares | (2,667,902) | (1,320,468) | ||
Payments for offering cost | (318,000) | |||
Dividend paid | (19,547,532) | |||
Proceeds from related party | ¥ 4,880,000 | 875,098 | ||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (9,037,223) | (1,552,185) | (29,377) | |
NET (DECREASE) INCREASE IN CASH | 4,203,511 | (46,446,920) | (75,250,339) | |
CASH-beginning of year | 4,257,104 | 21,714,782 | ||
CASH-end of year | 4,257,104 | 21,714,782 | ||
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||
Cash paid for income tax | 9,764 | 3,209,378 | 12,248,230 | |
Cash paid for interest | 2,114,388 | 2,413,014 | ||
Parent Company | Reportable Legal Entities | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net (loss) income | (34,826,989) | (71,198,379) | 5,532,581 | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||||
Equity in loss (earnings) of subsidiaries, VIEs and VIEs' subsidiaries | 28,512,556 | 35,994,910 | (14,725,415) | |
Impairment on long-term investments | 1,600,000 | 29,189,836 | ||
Share-based compensation | 55,468 | 347,466 | 6,585,386 | |
Changes in operating assets and liabilities: | ||||
Prepayments and other assets | (154,653) | 344,195 | (339,995) | |
Accrued expenses and other current liabilities | (40,618) | 184,258 | (2,562,074) | |
Interest payments on unsecured senior notes and short-term bank loan | (2,114,388) | |||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (6,968,624) | (5,137,714) | (5,509,517) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Increase in investment in subsidiaries, VIEs and VIE's subsidiaries | (1,000,000) | (15,420,961) | ||
Purchase of long-term investments | (14,594,918) | (1,600,000) | ||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (15,594,918) | (17,020,961) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Exercise of share options | 3 | 281,616 | 1,156,623 | |
Proceeds from issuance of unsecured note | 20,000,000 | |||
Principal payments on unsecured senior notes | (10,000,000) | |||
Repayment from subsidiaries, VIEs and VIE's subsidiaries | 11,738,667 | |||
Repurchase of ordinary shares | (2,667,902) | (1,320,468) | ||
Payments for offering cost | (318,000) | |||
Dividend paid | (19,547,532) | |||
Proceeds from related party | 5,004,290 | |||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | 6,742,960 | (2,386,286) | (29,377) | |
NET (DECREASE) INCREASE IN CASH | (225,665) | (23,118,918) | (22,559,855) | |
CASH-beginning of year | 1,709,149 | 24,828,067 | 47,387,922 | |
CASH-end of year | 1,483,484 | 1,709,149 | $ 24,828,067 | |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||
Cash paid for interest | $ 2,114,388 | $ 2,413,014 |