Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Niu Technologies |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Central Index Key | 0001744781 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Class A Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 130,174,878 |
Class B Ordinary Shares | |
Entity Common Stock, Shares Outstanding | 19,242,020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets | |||
Cash | $ 40,211,719 | ¥ 279,945,942 | ¥ 569,059,591 |
Term deposits | 25,051,647 | 174,404,554 | 27,452,663 |
Restricted cash | 31,838,902 | 221,656,071 | 179,262,714 |
Short-term investments | 44,591,818 | 310,439,321 | 120,241,425 |
Accounts receivable, net | 16,551,567 | 115,228,700 | 54,424,845 |
Inventories | 25,659,068 | 178,633,299 | 142,382,205 |
Prepayments and other current assets | 4,450,305 | 30,982,131 | 26,919,954 |
Total current assets | 188,355,026 | 1,311,290,018 | 1,119,743,397 |
Non-current assets | |||
Property, plant and equipment, net | 21,674,185 | 150,891,344 | 40,985,174 |
Intangible assets, net | 1,117,491 | 7,779,749 | 7,717,754 |
Land use right, net | 4,934,921 | 34,355,936 | |
Other non-current assets | 936,907 | 6,522,561 | 16,805,474 |
Total non-current assets | 28,663,504 | 199,549,590 | 65,508,402 |
Total assets | 217,018,530 | 1,510,839,608 | 1,185,251,799 |
Current liabilities | |||
Short-term bank borrowings (including short term bank borrowings of VIE without recourse to the Company of RMB179,978,003 and RMB217,394,132 as of December 31, 2018 and 2019, respectively) | 31,226,713 | 217,394,132 | 179,978,003 |
Accounts payable (including accounts payable of VIE without recourse to the Company of RMB249,665,890 and RMB258,934,264 as of December 31, 2018 and 2019, respectively) | 37,201,336 | 258,988,264 | 249,665,890 |
Advance from customers (including advance from customers of VIE without recourse to the Company of RMB20,505,861 and RMB7,478,309 as of December 31, 2018 and 2019, respectively) | 1,074,192 | 7,478,309 | 20,505,861 |
Deferred revenue - current (including deferred revenue-current of VIE without recourse to the Company of RMB12,666,330 and RMB31,105,700 as of December 31, 2018 and 2019, respectively) | 4,468,054 | 31,105,700 | 12,666,330 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIE without recourse to the Company of RMB119,242,975 and RMB164,442,316 as of December 31, 2018 and 2019, respectively) | 25,213,795 | 175,533,397 | 134,184,026 |
Income taxes payable (including income taxes payable of VIE without recourse to the Company of nil and RMB3,013,805 as of December 31, 2018 and 2019, respectively) | 432,906 | 3,013,805 | |
Total current liabilities | 99,616,996 | 693,513,607 | 597,000,110 |
Non-current liabilities | |||
Deferred revenue - non-current (including deferred revenue-non current of VIE without recourse to the Company of RMB234,801 and RMB2,171,033 as of December 31, 2018 and 2019, respectively) | 311,849 | 2,171,033 | 234,801 |
Deferred income tax liability (including deferred income taxes of VIE without recourse to the Company of nil and RMB1,265,780 as of December 31, 2018 and 2019, respectively) | 181,818 | 1,265,780 | |
Other non-current liabilities (including other non-current liabilities of VIE without recourse to the Company of RMB17,609,842 and RMB22,358,968 as of December 31, 2018 and 2019, respectively) | 3,211,665 | 22,358,968 | 17,609,842 |
Total non-current liabilities | 3,705,332 | 25,795,781 | 17,844,643 |
Total liabilities | 103,322,328 | 719,309,388 | 614,844,753 |
SHAREHOLDERS' EQUITY: | |||
Additional paid-in capital | 249,662,837 | 1,738,102,741 | 1,717,483,548 |
Accumulated other comprehensive loss | (1,776,584) | (12,368,224) | (22,786,922) |
Accumulated deficit | (134,203,908) | (934,300,768) | (1,124,385,539) |
Total shareholders' equity | 113,696,202 | 791,530,220 | 570,407,046 |
Total liabilities and shareholders' equity | 217,018,530 | 1,510,839,608 | 1,185,251,799 |
Class A Ordinary Shares | |||
SHAREHOLDERS' EQUITY: | |||
Ordinary Shares | 12,137 | 84,494 | 83,120 |
Class B Ordinary Shares | |||
SHAREHOLDERS' EQUITY: | |||
Ordinary Shares | $ 1,720 | ¥ 11,977 | ¥ 12,839 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | |
Short-term bank borrowings | $ 31,226,713 | ¥ 217,394,132 | ¥ 179,978,003 | |
Accounts payable | 37,201,336 | 258,988,264 | 249,665,890 | |
Advances from customers | 1,074,192 | 7,478,309 | 20,505,861 | |
Deferred revenue - current | 4,468,054 | 31,105,700 | 12,666,330 | |
Accrued expenses and other current liabilities | 25,213,795 | 175,533,397 | 134,184,026 | |
Income taxes payable | 432,906 | 3,013,805 | ||
Deferred revenue - non current | 311,849 | 2,171,033 | 234,801 | |
Deferred income tax liability | 181,818 | 1,265,780 | ||
Other non-current liabilities | $ 3,211,665 | ¥ 22,358,968 | ¥ 17,609,842 | |
Class A Ordinary Shares | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, authorized | shares | 4,900,000,000 | 4,900,000,000 | 4,900,000,000 | |
Ordinary shares, issued | shares | 130,174,878 | 130,174,878 | 128,032,038 | |
Ordinary shares, outstanding | shares | 130,174,878 | 130,174,878 | 128,032,038 | |
Class B Ordinary Shares | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, authorized | shares | 50,000,000 | 50,000,000 | 50,000,000 | |
Ordinary shares, issued | shares | 19,242,020 | 19,242,020 | 20,642,020 | |
Ordinary shares, outstanding | shares | 19,242,020 | 19,242,020 | 20,642,020 | |
Class A shares issued upon conversion of each share | shares | 1 | 1 | ||
VIE | ||||
Short-term bank borrowings | ¥ 217,394,132 | ¥ 179,978,003 | ||
Accounts payable | 258,988,264 | 249,665,890 | ||
Advances from customers | 7,478,309 | 20,505,861 | ||
Deferred revenue - current | 31,105,700 | 12,666,330 | ||
Accrued expenses and other current liabilities | 164,442,316 | 119,242,975 | ||
Income taxes payable | 3,013,805 | 0 | ||
Deferred revenue - non current | 2,171,033 | 234,801 | ||
Deferred income tax liability | 1,265,780 | 0 | ||
Other non-current liabilities | ¥ 22,358,968 | ¥ 17,609,842 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) /INCOME | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) /INCOME | ||||
Revenues | $ 298,240,268 | ¥ 2,076,289,101 | ¥ 1,477,781,304 | ¥ 769,368,001 |
Cost of revenues | (228,351,654) | (1,589,738,548) | (1,279,155,847) | (714,669,718) |
Gross profit | 69,888,614 | 486,550,553 | 198,625,457 | 54,698,283 |
Operating expenses: | ||||
Selling and marketing expenses | (26,267,993) | (182,872,514) | (150,150,872) | (83,064,894) |
Research and development expenses | (9,650,859) | (67,187,348) | (91,811,892) | (39,492,743) |
General and administrative expenses | (11,436,060) | (79,615,561) | (272,464,481) | (74,799,105) |
Total operating expenses | (47,354,912) | (329,675,423) | (514,427,245) | (197,356,742) |
Government grants | 4,285,353 | 29,833,770 | 1,395,200 | 833,000 |
Operating (loss) / income | 26,819,055 | 186,708,900 | (314,406,588) | (141,825,459) |
Changes in fair value of a convertible loan | ¥ | (34,499,858) | (43,006,399) | ||
Interest expenses | (1,637,076) | (11,396,998) | (7,721,675) | (3,153,521) |
Interest income | 2,427,359 | 16,898,785 | 2,998,796 | 1,006,972 |
Investment income | 874,548 | 6,088,425 | 4,601,849 | 2,315,536 |
(Loss) / income before income taxes | 28,483,886 | 198,299,112 | (349,027,476) | (184,662,871) |
Income tax expenses | (1,179,916) | (8,214,341) | 0 | 0 |
Net (loss) / income | 27,303,970 | 190,084,771 | (349,027,476) | (184,662,871) |
Other comprehensive income / (loss) | ||||
Foreign currency translation adjustment, net of nil income taxes | 1,275,931 | 8,882,775 | (28,436,867) | 9,994,461 |
Unrealized gain on available for sale securities, net income taxes of nil, nil and RMB2,034,081 for the year 2017, 2018 and 2019, respectively | 876,532 | 6,102,242 | 4,655,556 | 2,415,901 |
Less: reclassification adjustment for gain on available for sale securities realized in net income, net income taxes of nil, nil and RMB1,522,106 for the year 2017, 2018 and 2019, respectively | (655,911) | (4,566,319) | (4,601,849) | (2,315,536) |
Comprehensive (loss) / income | $ 28,800,522 | ¥ 200,503,469 | ¥ (377,410,636) | ¥ (174,568,045) |
Net (loss) / income per ordinary share | ||||
Basic (In dollars per share) | (per share) | $ 0.18 | ¥ 1.28 | ¥ (5.30) | ¥ (7.02) |
Diluted (In dollars per share) | (per share) | $ 0.18 | ¥ 1.24 | ¥ (5.30) | ¥ (7.02) |
Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net (loss) / income per ordinary share | ||||
Basic | 149,025,166 | 149,025,166 | 65,834,876 | 26,295,181 |
Diluted | 153,248,188 | 153,248,188 | 65,834,876 | 26,295,181 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) /INCOME (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) /INCOME | |||
Foreign currency translation adjustment, income tax | ¥ 0 | ¥ 0 | ¥ 0 |
Unrealized gain on available for sale securities, income tax | 2,034,081 | 0 | 0 |
Reclassification adjustment for gain on available for sale securities realized in net income, income tax | ¥ 1,522,106 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) / EQUITY | Ordinary sharesSeries Seed Preferred SharesCNY (¥)shares | Ordinary sharesClass A Ordinary SharesCNY (¥)shares | Ordinary sharesClass B Ordinary SharesCNY (¥)shares | Ordinary sharesUSD ($)shares | Ordinary sharesCNY (¥)shares | Series Seed Preferred SharesSeries Seed Preferred SharesCNY (¥)shares | Series Seed Preferred SharesCNY (¥)shares | Additional paid-in capitalClass A Ordinary SharesCNY (¥) | Additional paid-in capitalClass B Ordinary SharesCNY (¥) | Additional paid-in capitalUSD ($) | Additional paid-in capitalCNY (¥) | Accumulated other comprehensive (loss) / incomeUSD ($) | Accumulated other comprehensive (loss) / incomeCNY (¥) | Accumulated deficitUSD ($) | Accumulated deficitCNY (¥) | Class A Ordinary SharesCNY (¥) | Class B Ordinary SharesCNY (¥) | USD ($) | CNY (¥) |
Beginning balance at Dec. 31, 2016 | ¥ 39,948 | ¥ 18,436 | ¥ 377,738,798 | ¥ (4,498,588) | ¥ (586,493,123) | ¥ (213,194,529) | |||||||||||||
Beginning balance (in shares) at Dec. 31, 2016 | shares | 64,570,520 | 64,570,520 | 30,000,000 | ||||||||||||||||
Increase (decrease) in shareholders' deficit | |||||||||||||||||||
Share-based compensation | 62,527,098 | 62,527,098 | |||||||||||||||||
Net (loss) / income | (184,662,871) | (184,662,871) | |||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | 9,994,461 | 9,994,461 | |||||||||||||||||
Unrealized holding gains on available-for-sale security, net of income taxes | 2,415,901 | 2,415,901 | |||||||||||||||||
Reclassification adjustment for gain on available for sale securities realized in net income, net of income taxes | (2,315,536) | (2,315,536) | |||||||||||||||||
Ending balance at Dec. 31, 2017 | ¥ 39,948 | ¥ 18,436 | 440,265,896 | 5,596,238 | (771,155,994) | (325,235,476) | |||||||||||||
Ending balance (in shares) at Dec. 31, 2017 | shares | 64,570,520 | 64,570,520 | 30,000,000 | ||||||||||||||||
Increase (decrease) in shareholders' deficit | |||||||||||||||||||
Share-based compensation | 265,874,927 | 265,874,927 | |||||||||||||||||
Issuance of ordinary shares | ¥ 9,714 | 383,308,578 | 383,318,292 | ||||||||||||||||
Issuance of ordinary shares (in shares) | shares | 14,000,000 | 14,000,000 | |||||||||||||||||
Repurchase and retirement of ordinary shares | ¥ (266) | (4,202,069) | (4,202,335) | ||||||||||||||||
Repurchase and retirement of ordinary shares (in shares) | shares | (432,000) | (432,000) | |||||||||||||||||
Conversion of preferred shares into ordinary shares | ¥ 18,436 | ¥ 24,562 | ¥ 3,565 | ¥ (18,436) | ¥ 451,100,862 | ¥ 176,933,285 | ¥ 451,125,424 | ¥ 176,936,850 | |||||||||||
Conversion of preferred shares into ordinary shares (in shares) | shares | 30,000,000 | 35,397,679 | 5,137,859 | (30,000,000) | |||||||||||||||
Net (loss) / income | (349,027,476) | (349,027,476) | |||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | (28,436,867) | (28,436,867) | |||||||||||||||||
Unrealized holding gains on available-for-sale security, net of income taxes | 4,655,556 | 4,655,556 | |||||||||||||||||
Reclassification adjustment for gain on available for sale securities realized in net income, net of income taxes | (4,601,849) | (4,601,849) | |||||||||||||||||
Ending balance at Dec. 31, 2018 | ¥ 95,959 | 1,717,483,548 | (22,786,922) | (1,124,385,539) | 570,407,046 | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2018 | shares | 148,674,058 | 148,674,058 | |||||||||||||||||
Beginning balance at Dec. 31, 2017 | ¥ 39,948 | ¥ 18,436 | 440,265,896 | 5,596,238 | (771,155,994) | (325,235,476) | |||||||||||||
Beginning balance (in shares) at Dec. 31, 2017 | shares | 64,570,520 | 64,570,520 | 30,000,000 | ||||||||||||||||
Increase (decrease) in shareholders' deficit | |||||||||||||||||||
Conversion of preferred shares into ordinary shares | 628,062,274 | ||||||||||||||||||
Ending balance at Dec. 31, 2019 | $ 13,857 | ¥ 96,471 | $ 249,662,837 | 1,738,102,741 | $ (1,776,584) | (12,368,224) | $ (134,203,908) | (934,300,768) | $ 113,696,202 | 791,530,220 | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | shares | 149,416,898 | 149,416,898 | |||||||||||||||||
Beginning balance at Dec. 31, 2018 | ¥ 95,959 | 1,717,483,548 | (22,786,922) | (1,124,385,539) | 570,407,046 | ||||||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | shares | 148,674,058 | 148,674,058 | |||||||||||||||||
Increase (decrease) in shareholders' deficit | |||||||||||||||||||
Share-based compensation | 19,622,779 | 19,622,779 | |||||||||||||||||
Exercise of share-based awards | ¥ 512 | 996,414 | 996,926 | ||||||||||||||||
Exercise of share-based awards (in shares) | shares | 742,840 | 742,840 | |||||||||||||||||
Net (loss) / income | 190,084,771 | 27,303,970 | 190,084,771 | ||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | 8,882,775 | 1,275,931 | 8,882,775 | ||||||||||||||||
Unrealized holding gains on available-for-sale security, net of income taxes | 6,102,242 | 876,532 | 6,102,242 | ||||||||||||||||
Reclassification adjustment for gain on available for sale securities realized in net income, net of income taxes | (4,566,319) | (655,911) | (4,566,319) | ||||||||||||||||
Ending balance at Dec. 31, 2019 | $ 13,857 | ¥ 96,471 | $ 249,662,837 | ¥ 1,738,102,741 | $ (1,776,584) | ¥ (12,368,224) | $ (134,203,908) | ¥ (934,300,768) | $ 113,696,202 | ¥ 791,530,220 | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | shares | 149,416,898 | 149,416,898 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) / EQUITY (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) / EQUITY | |||
Foreign currency translation adjustment, income tax | ¥ 0 | ¥ 0 | ¥ 0 |
Unrealized holding gains on available-for-sale security, income tax | 2,034,081 | 0 | 0 |
Reclassification adjustment for gains on available-for-sale securities realized in net income, income tax | ¥ 1,522,106 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Operating activities: | ||||
Net (loss) / income | $ 27,303,970 | ¥ 190,084,771 | ¥ (349,027,476) | ¥ (184,662,871) |
Adjustments to reconcile net (loss) / income to net cash provided by operating activities | ||||
Allowance / (reversals) for doubtful accounts | 439,597 | 3,060,389 | (1,215,464) | 1,908,399 |
Share-based compensation | 2,818,636 | 19,622,779 | 265,874,927 | 62,527,098 |
Change in fair value of a convertible loan | 34,499,858 | 43,006,399 | ||
Depreciation and amortization | 4,658,047 | 32,428,391 | 18,881,376 | 9,746,569 |
Investment income | (874,548) | (6,088,425) | (4,601,849) | (2,315,536) |
Unrealized foreign exchange loss / (gain) | (101,513) | (706,712) | 108,528 | 219,885 |
Loss on disposal of property, plant and equipment | 6,705 | 46,679 | 227,720 | 4,697 |
Write-down of inventories | 1,506,958 | 10,491,137 | 18,254,406 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (9,173,525) | (63,864,244) | (42,827,269) | 8,307,152 |
Inventories | (6,713,684) | (46,739,327) | (72,410,646) | (21,444,209) |
Prepayments and other current assets | (566,480) | (3,943,720) | (19,570,371) | 24,498,743 |
Other non-current assets | (347,525) | (2,419,398) | (130,199) | |
Accounts payable | 1,338,986 | 9,321,752 | 124,728,425 | 53,119,693 |
Advances from customers | (1,871,291) | (13,027,552) | (27,997,528) | 35,169,999 |
Deferred revenue | 2,926,772 | 20,375,602 | 2,903,070 | 5,143,914 |
Other non-current liabilities | 76,483 | 532,460 | 5,231,091 | 5,682,222 |
Deferred income tax liability | 108,277 | 753,805 | ||
Income taxes payable | 432,906 | 3,013,805 | ||
Accrued expenses and other current liabilities | 3,697,067 | 25,738,243 | 55,640,518 | 39,151,124 |
Net cash provided by operating activities | 25,665,838 | 178,680,435 | 8,569,117 | 80,063,278 |
Investing activities: | ||||
Cash paid for purchase of property, plant and equipment | (16,408,721) | (114,234,236) | (32,017,882) | (23,244,485) |
Purchase of land use right | (3,556,866) | (24,762,190) | (12,329,652) | |
Purchase of intangible assets | (289,817) | (2,017,645) | (8,941,893) | |
Purchase of term deposits | (24,763,288) | (172,397,059) | (95,540,873) | |
Cash received from redemption of term deposits | 3,962,116 | 27,583,462 | 75,638,800 | |
Cash paid for purchase of short-term investments | (259,769,475) | (1,808,463,130) | (1,308,000,000) | (412,000,000) |
Cash received from sale of short-term investments | 233,617,966 | 1,626,401,557 | 1,277,601,849 | 379,315,536 |
Net cash used in investing activities | (67,208,085) | (467,889,241) | (103,589,651) | (55,928,949) |
Financing activities: | ||||
Proceeds from issuance of Class A Ordinary Shares upon IPO, net of underwriting commissions and discounts of RMB30,599,667 | 406,538,433 | |||
Payment of issuance cost of Class A Ordinary Shares in connection with IPO | (449,688) | (3,130,639) | (20,089,502) | |
Issuance of Series B Redeemable Convertible Preferred Shares | 161,392,196 | |||
Cash received from exercise of employee stock option | 143,199 | 996,926 | ||
Cash paid for repurchase of Ordinary Shares | (4,202,335) | |||
Proceeds from short-term bank borrowings | 38,248,763 | 266,280,240 | 199,978,003 | 118,701,147 |
Repayment for short-term bank borrowings | (32,874,273) | (228,864,111) | (188,234,207) | (49,997,837) |
Net cash provided by financing activities | 5,068,001 | 35,282,416 | 555,382,588 | 68,703,310 |
Effect of foreign currency exchange rate changes on cash and restricted cash | 1,035,094 | 7,206,098 | 6,074,726 | (13,064,824) |
Net increase / (decrease) in cash and restricted cash | (35,439,152) | (246,720,292) | 466,436,780 | 79,772,815 |
Cash and restricted cash at the beginning of the year | 107,489,773 | 748,322,305 | 281,885,525 | 202,112,710 |
Cash and restricted cash at the end of the year | 72,050,621 | 501,602,013 | 748,322,305 | 281,885,525 |
Supplemental information | ||||
Interest paid | 1,394,094 | 9,705,406 | 7,656,695 | ¥ 3,117,410 |
Income tax paid | 638,733 | 4,446,731 | ||
Payable for issuance cost of Class A Ordinary Shares in connection with IPO | ¥ (3,130,639) | |||
Payable for the construction of building | $ 3,301,233 | ¥ 22,982,521 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Underwriting commissions and discounts for issuance of Class A Ordinary Shares upon IPO | ¥ 30,599,667 |
DESCRIPTION OF ORGANIZATION AND
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES | |
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES Organization and principal activities Niu Technologies (“the Company”), through its wholly-owned subsidiaries, consolidated variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as “the Group”), is principally engaged in designing, manufacturing and selling of smart electric scooters and its accessories under the brand name of “NIU”. The Group’s principal operations and geographic markets are mainly in the People’s Republic of China (“PRC”). The accompanying consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries, consolidated VIE and VIE’s subsidiaries. The VIE arrangements The Group operates its online business in the PRC through Beijing Niudian Technologies Co., Ltd. ("Beijing Niudian", or the "VIE"), a limited liability company established under the laws of the PRC on September 18, 2014. Beijing Niudian holds the necessary PRC operating licenses for the online business. The equity interests of Beijing Niudian are legally held by individuals who act as nominee equity holders of the VIE on behalf of Beijing Niudian Information Technology Co., Ltd. ("Niudian Information"), the Company’s wholly owned subsidiary. A series of contractual agreements, including Powers of Attorney, Exclusive Business Cooperation Agreement, Equity Pledge Agreement, Exclusive Option Agreement and Spousal Consent Letters (collectively, the "VIE Agreements"), were entered among the Company, Niudian Information, Beijing Niudian and its nominee equity holders on May 27, 2015 and were subsequently amended to include registration of the Equity Pledge Agreement with the relevant registration authority on June 11, 2018, amended when an equity holder transferred certain equity interests to another equity holder on July 20, 2018 . The contractual agreements were further amended when two equity holders transferred certain equity interests to another equity holder on March 10, 2020. Pursuant to the VIE Agreements, the Company is able to exercise effective control over, bears the risks of, enjoys substantially all of the economic benefits of the VIE, and has an exclusive option to purchase all or part of the equity interests in the VIE when and to the extent permitted by PRC law at the lowest price possible. The Company’s management concluded that Beijing Niudian is a VIE and the Company is its primary beneficiary. As such, the consolidated financial statements of the VIE are included in the consolidated financial statements of the Company. The principal terms of the VIE Agreements are further described below. 1) Powers of Attorney The Company and each of the equity holders of Beijing Niudian entered into Powers of Attorney. Pursuant to the Powers of Attorney, the equity holders of Beijing Niudian irrevocably appointed the Company as their attorney-in-fact to exercise all equity holder rights, including, but not limited to, convening and attending in the equity holders’ meeting, appointing or removing directors, executive officers and senior management, disposing of all or part of the equity holder’s interests in Beijing Niudian, casting equity holder’s vote on matters requiring equity holders’ approval and doing all other acts in the capacity of equity holder as permitted by Beijing Niudian’s Memorandum and Articles of Association. In addition, the Company has a right to assign its rights and benefits under the Powers of Attorney to any other parties without an advance notice to the equity holders of Beijing Niudian. The Powers of Attorney shall continue in force and be irrevocable as long as the equity holders of Beijing Niudian remain as the equity holders of Beijing Niudian. 2) Exclusive Business Cooperation Agreement Niudian Information and Beijing Niudian entered into an Exclusive Business Cooperation Agreement, whereby Niudian Information is appointed as the exclusive service provider for the provision of business support, technology and consulting services to Beijing Niudian. Unless a written consent is given by Niudian Information, Beijing Niudian is not allowed to engage a third party to provide such services, while Niudian Information is able to designate another party to render such services to Beijing Niudian. Beijing Niudian shall pay Niudian Information on a monthly basis a service fee, which shall equal to 100% of the monthly net profits of Beijing Niudian, and Niudian Information has the sole discretion to adjust the basis of calculation of the service fee amount according to service provided to Beijing Niudian. Niudian Information owns the exclusive intellectual property rights, whether created by Niudian Information or Beijing Niudian, as a result of the performance of the Exclusive Business Cooperation Agreement unless terminated in writing by Niudian Information. The Exclusive Business Cooperation Agreement will be in effect until September 17, 2044 which represents the end of operation term of Beijing Niudian. 3) Equity Pledge Agreement An Equity Pledge Agreement was entered into by and among Niudian Information, Beijing Niudian and equity holders of Beijing Niudian. To guarantee payment from Beijing Niudian, including but not limited to the service fee pursuant to the Exclusive Business Cooperation Agreement, and the performance of Beijing Niudian and the nominee equity holders’ obligations under the contractual arrangements including the Exclusive Business Cooperation Agreement, Exclusive Option Agreement and Powers of Attorney, the equity holders of Beijing Niudian pledged their respective equity in Niudian Information under the Equity Pledge Agreement to Niudian Information as collateral. In the event Beijing Niudian fails to pay Niudian Information its service fee, Niudian Information will have the right to sell the pledged equity and apply the proceeds received to pay any outstanding service fees due by Beijing Niudian to Niudian Information. The equity holders of Beijing Niudian agree that, during the term of the Equity Pledge Agreement, they will not dispose of the pledged equity or create or allow any encumbrance on the pledged equity, and they also agree that Niudian Information’s rights relating to the equity pledges shall not be prejudiced by any legal actions of the equity holders of Beijing Niudian, their successors or their designees. The equity pledges have been registered with the relevant registration authority and became effective and enforceable since registration. The Equity Pledge Agreement may only be terminated upon the fulfillment of all contractual obligations under the Exclusive Business Cooperation Agreement, Exclusive Option Agreement and Powers of Attorney. During the term of the Equity Pledge Agreement, Niudian Information is entitled to receive dividends attributable to the pledged Beijing Niudian equity. 4) Exclusive Option Agreement Each of the equity holders of Beijing Niudian entered into an Exclusive Option Agreement with the Company, Niudian Information, and Beijing Niudian, pursuant to which the equity holders of Beijing Niudian granted the Company, and Niudian Information or other person upon the designation by the Company, an irrevocable and exclusive option to purchase, at its discretion and to the extent permitted under the PRC law, all or part of the equity holders’ interests in Beijing Niudian at RMB100 or the lowest price that the PRC law permits at the time unless a valuation of the equity is required by the PRC law. The equity holders of Beijing Niudian commit that without the prior written consent of the Company, the equity holders of Beijing Niudian will not, among other things, (i) create any pledge or encumbrance on their equity interests in Beijing Niudian, (ii) transfer or otherwise dispose of their equity interests in Beijing Niudian, (iii) change Beijing Niudian’s registered capital, (iv) amend Beijing Niudian’s articles of association, (v) dispose of Beijing Niudian’s material assets or enter into any material contract with a value of over RMB100,000 (except in the ordinary course of business), or (vi) merge Beijing Niudian with any other entity. In addition, Beijing Niudian undertakes that, without the Company’s prior written consent, it will not, among other things, create any pledge or encumbrance on any of its assets, or transfer or otherwise dispose of its material assets (except in the ordinary course of business). Beijing Niudian and its equity holders shall appoint those individuals recommended by the Company as directors of Beijing Niudian. Beijing Niudian shall provide operating and financial information to the Company at the request of the Company and ensure the continuance of the business. The Exclusive Option Agreement will remain effective until all equity interests in Beijing Niudian held by its equity holders are transferred or assigned to the Company or its designee. Beijing Niudian and its equity holders shall not have any right to terminate the Exclusive Option Agreement. 5) Spousal Consent Letters The spouses of each of nominee equity holders signed Spousal Consent Letters to consent that the equity interests in Beijing Niudian held by and registered in the name of the respective nominee equity holders will be disposed of pursuant to the VIE Agreements. These spouses agreed not to assert any rights over the equity interest in Beijing Niudian held by their spouses. In addition, in the event that the spouses obtain any equity interests in Beijing Niudian held by their spouses for any reason, they agreed to be bound by the VIE Agreements. Risks in relation to the VIE structure In the opinion of the Company’s management, the VIE Agreements have resulted in the Company having the power to direct activities that most significantly impact the VIE, including appointing key management, setting up operating policies, exerting financial controls and transferring profit or assets out of the VIE at its discretion. The Company considers that it has the right to receive all the benefits and assets of the VIE. As the VIE was established as a limited liability company under the PRC law, its creditors do not have recourse to the general credit of the Company for the liabilities of the VIE, and the Company does not have the obligation to assume the liabilities of the VIE. The Company has determined that the VIE Agreements are in compliance with PRC laws and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the VIE Agreements; and if the equity holders of the VIE were to reduce their interest in the Company, their interests 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. The Company’s ability to control the VIE also depends on the rights provided to the Company under the Powers of Attorney to vote on all matters requiring equity holders’ approval in the respective VIE. As noted above, the Company believes these Powers of Attorney are legally enforceable but yet they may not be as effective as direct equity ownership. In addition, if the corporate structure of the Group or the contractual arrangements between the Company, Niudian Information, the VIE and its respective equity holders were found to be in violation of any existing PRC laws and regulations, the relevant PRC regulatory authorities could: · revoke the business license and/or operating licenses of such entities; · discontinue or place restrictions or onerous conditions on the Group’s operations; · impose fines, confiscate the income from our VIE, or impose other requirements with which the Group may not be able to comply; · require the Group to restructure its ownership structure or operations, including terminating the contractual arrangements with the VIE and deregistering the equity pledges of the VIE, which in turn would affect the Company’s ability to consolidate, derive economic interests from, or exert effective control over the VIE; or · restrict or prohibit our use of the proceeds of this offering to finance our business and operations in China. The imposition of any of the above restrictions or actions may result in a material and adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Company to lose the right to direct the activities of the VIE or the right to receive its economic benefits, the Company would no longer be able to consolidate the VIE. The Company’s management believes that the likelihood to lose the Company’s current ownership structure or the contractual arrangements with the VIE is remote based on the current facts and circumstances. There is no VIE in which the Company has a variable interest but is not the primary beneficiary. Currently there is no contractual arrangement that could require the Company to provide additional financial support to the VIE. The following consolidated assets and liabilities information of the Group’s VIE as of December 31, 2018 and 2019, and consolidated revenues, net (loss) / income and cash flow information for the years ended December 31, 2017, 2018 and 2019, have been included in the accompanying consolidated financial statements. All intercompany transactions and balances with the Company and its wholly-owned subsidiaries have been eliminated upon consolidation. As of December 31, 2018 2019 RMB RMB Cash 90,723,253 93,548,349 Short-term investments 120,241,425 310,439,321 Accounts receivable, net 54,424,845 115,228,700 Inventories 142,155,411 178,476,473 Prepayments and other current assets 22,711,514 18,613,814 Amounts due from intercompany 4,262,270 4,303,778 Total current assets 434,518,718 720,610,435 Property, plant and equipment, net 40,580,352 148,937,701 Intangible assets, net 580,667 1,962,530 Land use right, net — 34,355,936 Other non-current assets 16,805,475 5,961,241 Total assets 492,485,212 911,827,843 Short-term bank borrowings 179,978,003 217,394,132 Accounts payable 249,665,890 258,988,264 Amounts due to intercompany 211,250,230 306,137,760 Advances from customers 20,505,861 7,478,309 Deferred revenue—current 12,666,330 31,105,700 Accrued expenses and other current liabilities 119,242,975 164,442,316 Income taxes payable — 3,013,805 Total current liabilities 793,309,289 988,560,286 Deferred revenue—non current 234,801 2,171,033 Deferred income tax liability — 1,265,780 Other non-current liabilities 17,609,842 22,358,968 Total liabilities 811,153,932 1,014,356,067 For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Revenues 769,368,001 1,477,593,628 2,115,501,618 Net (loss) / income (145,154,084) (294,156,973) 196,473,033 Net cash (used in) / provided by operating activities (2,423,156) 14,379,166 284,907,333 Net cash used in investing activities (55,928,949) (74,333,070) (319,696,832) Net cash provided by financing activities 68,703,310 78,199,492 37,416,129 Effect of foreign currency exchange rate changes on cash (813,270) 684,791 198,466 Net increase in cash 9,537,935 18,930,379 2,825,096 Cash at the beginning of the year 62,254,939 71,792,874 90,723,253 Cash at the end of the year 71,792,874 90,723,253 93,548,349 The unrecognized revenue-producing assets that are held by the VIE primarily consist of ICP License, Production License for National Industrial Products, trademarks, patents, know-how and customer relationships. None of the assets of the VIE can be used only to settle obligations of VIE. None of the assets of the VIE has been pledged or collateralized. The creditors of the VIE do not have recourse to the general credit of the Company or its consolidated subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). (b) Principles of consolidation The consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE for which the Company or its subsidiary is the primary beneficiary, and the VIE’s subsidiaries. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, exercises effective control over the activities that most impact the economic performance, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All intercompany transactions and balances among the Company, its subsidiaries, the VIE and the VIE’s subsidiaries have been eliminated upon consolidation. (c) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the stand-alone selling price ("SSP") of distinct performance obligations, the allowance for doubtful accounts receivable, write downs for excess and obsolete inventories, depreciable lives of property , plant and equipment, intangible assets and land use right, the realization of deferred income tax assets, future warranty expenses, the fair value of share-based compensation awards and convertible loans, and the fair value of the ordinary shares to determine the existence of beneficial conversion feature of the convertible redeemable preferred shares prior to IPO. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Convenience translation Translations of balances in the consolidated financial statements from RMB into US$ as of and for the year ended December 31, 2019 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.9618, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2019. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2019, or at any other rate. The US$ convenience translation is not required under U.S. GAAP. (e) Commitments and contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. (f) Cash Cash consist of cash on hand, cash at bank and term deposits, which have original maturities of three months or less and are readily convertible to known amounts of cash. Cash at bank and term deposits are deposited in financial institutions at below locations: As of December 31, 2018 2019 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 145,529,365 90,078,714 —Denominated in USD 155,583,394 178,359,872 Total cash balances held at mainland PRC financial institutions 301,112,759 268,438,586 Financial institutions in the United States —Denominated in USD 4,038,742 3,523,116 Total cash balances held at the United States financial institutions 4,038,742 3,523,116 Financial institutions in the Hong Kong S.A.R. —Denominated in USD 263,588,286 6,015,191 Total cash balances held at Hong Kong S.A.R. financial institutions 263,588,286 6,015,191 Financial institutions in Indonesia —Denominated in USD — 1,765,448 Total cash balances held at the Indonesia financial institutions — 1,765,448 Total cash balances held at financial institutions 568,739,787 279,742,341 (g) Term deposits Term deposits represent deposits placed with bank with original maturities of more than three months but less than one year. The Group's term deposits are denominated in USD and are deposited at a financial institution in the mainland of the PRC. (h) Restricted cash Restricted cash is an amount of cash deposited with banks in conjunction with borrowings from the banks. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the terms of the bank borrowings. Restricted cash is classified as current asset on the Company’s consolidated balance sheets , as all the balance will be released to cash within the next 12 months. The Group’s restricted cash are denominated in RMB and USD and are deposited at financial institutions in the mainland of the PRC. In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-18, Statement of Cash Flows: Restricted Cash ("ASU 2016-18") . ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Company as of January 1, 2019. Adoption of ASU 2016-18 resulted in the Group including changes in cash and restricted cash in its consolidated statements of cash flows. The Group adopted this ASU on January 1, 2019 on a retrospective basis. The adoption of this guidance impacted the presentation and classification of changes in restricted cash in the Group's consolidated statements of cash flows. The impact of adoption on the consolidated statements of cash flows for the years ended December 31, 2017 and 2018 was as follows: For the Year Ended December 31, 2017 2018 RMB RMB Net cash provided by operating activities — 789,751 Net cash provided by financing activities 66,288,600 — Effect of foreign currency exchange rate changes on restricted cash (7,391,400) 8,583,763 Net increase in cash and restricted cash 58,897,200 9,373,514 For the year ended December 31, 2017, the changes in restricted cash amounting to RMB66,288,600 previously reported in financing activities was reclassified to total cash and restricted cash in the consolidated statements of cash flows. For the year ended December 31, 2018, the changes in restricted cash amounting to RMB789,751 previously reported in operating activities was related to interest income on restricted cash and reclassified to total cash and restricted cash in the consolidated statements of cash flows. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. As of December 31, 2018 2019 RMB RMB Cash 569,059,591 279,945,942 Restricted cash, current 179,262,714 221,656,071 Restricted cash, non-current — — Total cash and restricted cash 748,322,305 501,602,013 (i) Short-term investments The Group’s short-term investments represent the Group’s investments in financial products managed by financial institutions in the PRC which are redeemable at the option of the Group on any working day, which are classified as available-for-sale securities. Short-term investments are reported at fair value, with unrealized holding gains or losses, net of the related tax effect, excluded from earnings and recorded as a separate component of accumulated other comprehensive income / (loss) until realized. Realized gains or losses from the sale of short-term investments are determined on a specific identification basis and are recorded as investment income when earned. (j) Inventories Inventories, consisting of raw materials, work in progress and products available for sale, are stated at the lower of cost or net realizable value. The cost of inventory is determined using the weighted average cost method. Cost of work-in-process and finished goods comprise direct materials, direct production costs and an allocation of production overheads based on normal operating capacity. The Group takes ownership, risks and rewards of the products purchased. Inventory is written down for damaged and slow-moving goods, which is dependent upon factors such as historical and forecasted consumer demand. When appropriate, write downs to inventory are recorded to write down the cost of inventories to their net realizable value. (k) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and any recorded impairment. The estimated useful lives are as follows: Building 50 years Machinery and equipment 3 ~ 10 years Furniture 3 years Leasehold improvements 3 years Office and electronic equipment 2 ~ 5 years Motor vehicles 4 years Depreciation on property, plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Depreciation and amortization of property, plant and equipment attributable to manufacturing activities is capitalized as part of inventories, and recognized as cost of revenues when the inventory is sold. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred, and replacements and betterments are capitalized and amortized over the remaining useful life. (l) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets with finite lives are carried at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets with finite lives are amortized over the useful economic life on straight-line basis and assessed for impairment whenever there is an indication that the intangible assets may be impaired. (m) Land use right, net Land use right is recorded at cost less accumulated amortization and any accumulated impairment losses. Amortization is provided on a straight-line basis over the estimated useful lives, which is 50 years and represents the shorter of the estimated usage years or the terms of the land use right certificate. (n) Impairment of long-lived assets Long-lived assets such as property, plant and equipment, intangible assets and land use right with finite lives are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment of long-lived assets was recognized for the years ended December 31, 2017, 2018 and 2019. (o) Value added taxes The Company’s PRC subsidiaries are subject to value added tax ("VAT"). Revenues from sales of products are generally subject to VAT at the rate of 17% prior to May 1, 2018, which was adjusted to 16% after May 1, 2018, then to 13% after April 1, 2019. Revenues from services are generally subject to VAT at the rate of 6%. VAT are subsequently paid to PRC tax authorities after netting input VAT on purchases and VAT export rebates. The excess of output VAT over input VAT and VAT export rebates is reflected in Accrued expenses and other current liabilities, and the excess of input VAT and VAT export rebates over output VAT is reflected in Prepayments and other current assets in the consolidated balance sheets. (p) Fair value measurements Fair value represents 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Accounting guidance establishes a three-level fair value hierarchy and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash, term deposits, restricted cash, short-term investments, accounts receivable, short term bank borrowings, convertible loan and accounts payable. The Group measures short-term investments and convertible loan at fair value on a recurring basis. Short-term investments include financial products issued by financial institutions, which are valued based on prices per units quoted by issuers. They are categorized in Level 2 of the fair value hierarchy. Convertible loan being recognized in its entirety at fair value were measured at fair value using unobservable inputs. They are categorized in Level 3 of the fair value hierarchy. As of December 31, 2018 and 2019, the carrying values of other financial instruments approximated to their fair values due to the short term maturity of these instruments. The Group’s non-financial assets, such as land use right, intangible assets and property, plant and equipment, would be measured at fair value only if they were determined to be impaired. (q) Revenue recognition The Group generates substantially all of its revenues from sales of smart electric scooters, accessories and spare parts to the Group’s PRC domestic offline distributors and overseas offline distributors or directly to individual customers online. The Group also generates its revenues from its subscription-based mobile application services, as well as insurance service as an agent. Periods prior to January 1, 2019 Prior to January 1, 2019, the Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and the services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. When the Group sells its smart electric scooters to its customers, it also provides mobile application services for free for one to two years (the “free service period”). Customers are able to locate their smart electric scooters, as well as obtain the operating status (e.g. battery status), and claim online repair and maintenance requests of their smart electric scooters, upon their registration of their smart electric scooters on the Group’s mobile application. Customers may subscribe to such service after the free service period if they want to continue using aforementioned functions. The Group allocates revenue to all deliverables based on their relative selling prices. The Group uses a hierarchy to determine the selling price to be used for allocating revenue to the deliverables: (i) vendor-specific objective evidence ("VSOE") of fair value, (ii) third-party evidence ("TPE"), and (iii) best estimate of the selling price ("BESP"). The Group uses the SSP as the fair value of VSOE for advanced mobile application services. The allocated revenue to mobile application services is deferred and recognized over the free service period. The deferred revenue that will be recognized in the next twelve months is classified as current portion, and the remaining balance of deferred revenue is classified as non-current portion. Revenue from sales of products is recognized when the products is accepted by the domestic offline distributors, overseas offline distributors or individual customers. When the Group sells its products to its domestic offline distributors for domestic sales in PRC, acceptance of the products by the domestic offline distributors is evidenced by goods receipt notes signed by the domestic offline distributors, which is generally at the Group’s warehouse. The Group has no remaining obligations upon the domestic offline distributors acceptance of the products. The risks and rewards of ownership of the products is transferred to the domestic offline distributors upon the signing of the goods receipt notes and the domestic offline distributors have no rights to return the products. When the Group sells its products to distributors for oversea sales, risks and rewards of ownership are transferred to the distributors upon the products are delivered to and accepted by distributors at the named port of shipment. When the Group sells its products to individual customers through its own online store and third-party e-commerce platform, the Group is responsible for the delivery to individual customers. Acceptance of the products is evidenced by goods receipt notes signed by individual customers, which represents the risks and rewards of ownership are transferred to individual customers. The Group offers 7-day return-and-refund policy to individual customers who purchase products online. Revenue is recognized net of sales volume rebate, return allowances and VAT. The Group provides sales volume rebate to qualified distributors based on the volume sold by such distributors in a certain period. Sales volume rebates are accrued, when the products are sold to distributors. Return allowances, which reduce net revenues, are estimated based on historical experiences. The Group also sells insurance plan for electric scooters (“NIU Cover”) to individual customers at their option. The insurance is provided by third party insurance companies. The Group earns the service fee on net basis. The Group recognizes revenue when the insurance agreement is signed, since the Group bears no further obligation upon the agreements are entered into between individual customers and insurance providers. For some sales, the Group collects cash before delivery. Cash collected before product delivery is recognized as advances from customers. Period commencing January 1, 2019 The Group adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC 606") on January 1, 2019. The Group applied ASC 606 using the modified retrospective method for contracts which were not completed at the date of initial adoption. Results for reporting periods beginning after January 1, 2019 are presented under the new revenue recognition, while prior periods amounts are not adjusted and continue to be reported in accordance with ASC 605, Revenue Recognition . Since the adoption of ASC 606 starting from January 1, 2019, the Group recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which the Group expects to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value added taxes). For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Group does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. The adoption of new revenue standard did not impact accumulated deficit as of January 1, 2019. The Group has updated significant accounting policies and relevant disclosures hereinafter. To achieve that core principle, the Group applies the five steps defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. A performance obligation is considered distinct from other obligations in a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and (b) is separately identified in the contract. The Group allocates the transaction price to each performance obligation based on the relative SSP of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Products The Group identified one performance obligation which is to sell products, such as smart electric scooters, accessories and spare parts, to the Group’s PRC domestic offline distributors and overseas offline distributors or directly to individual customers online. For all sales of products, the Group requires a signed contract or purchase order, which specifies pricing, quantity and product specifications. Revenue of product sales is recognized on a gross basis upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers. The transfer of control of the products is satisfied at a point in time, which occurs when the products are accepted by the domestic offline distributors, overseas offline distributors or individual customers. When the Group sells its products to its domestic offline distributors for domestic sales in PRC, acceptance of the products by the domestic offline distributors is evidenced by goods receipt notes signed by the domestic offline distributors, which is generally at the Group’s warehouse. When the Group sells its products to distributors for oversea sales, acceptance of the products by overseas offline distributors is evidenced upon the products are delivered to and accepted by distributors at the named port of shipment. When the Group sells its products to individual customers through its own online store and third-party e-commerce platform, the Group is responsible for the delivery to individual customers. Acceptance of the products is evidenced by goods receipt notes signed by individual customers. The Group provides sales volume rebate to qualified distributors based on the volume sold to such distributors in a certain period and grants online individual customers unconditional right to return the products within 7 days after their acceptance. Revenues are measured as the amount of consideration the Group expects to receive in exchange for transferring products to domestic offline distributors, overseas offline distributors or individual customers. Consideration is recorded net of sales volume rebate, sales returns and VAT. Sales returns is estimated based on historical experiences, which were insignificant for the years ended December 31, 2017, 2018 and 2019. The Group utilizes delivery service providers to deliver products to overseas offline distributors and individual customers ("shipping activities"), but the delivery service is not considered as a separate obligation as the shipping activities are performed before the overseas offline distributors and individual customers obtain control of the products. Therefore, shipping activities are not considered a separate promised service to them but rather are activities to fulfill the Group's promise to transfer the products. Outbound shipping charges to overseas offline distributors and individual customers are included as a part of the revenues, and outbound shipping-related costs are recorded as cost of revenues. Shipping costs incurred for sales of products and recognized as cost of revenues were RMB8,917,910, RMB16,752,785 and RMB31,912,258 for the years ended December 31, 2017, 2018 and 2019, respectively. For some sales, the Group collects cash before delivery. Cash collected before product delivery is recognized as advances from customers. Service When the Group sells its smart electric scooters to its customers, it also provides mobile application services for free for one to two years (the "free service period"). Customers are able to locate their smart electric scooters, as well as obtain the operating status (e.g. battery status), and claim online repair and maintenance requests of their smart electric scooters, upon their registration of their smart electric scooters on the Group's mobile application. Customers may subscribe to such service after the free service period if they want to continue using aforementioned functions. Such revenue arrangements are divided into separate distinct performance obligations, including electric scooters and mobile application services. SSP for electric scooters is not directly observable, as the Group does not sell the electric scooters without mobile application service for certain free service period. The Group determines the SSP for electric scooters using the residual approach and subtracting the observable SSP of the mobile application services from the total transaction price. The allocated revenue to mobile application services of free service period and subscribed mobile application service revenue is deferred and recognized on a straight-line basis over the service period, as the Group determines that the customer simultaneously receives and consumes benefits provided by the Group as the Group performs during the free service period or the subscription period. The Group entered into an agreement with a customer in 2019 and provides design, testing and producing prototype of a product for the customer. The Group identifies each deliverable specified in the agreement as a distinct performance obligation at contract inception. The Group determines the SSP for each performance obligation in the agreement using the expected cost plus a margin approach and allocates the transaction price to each distinct performance obligation based on the relative estimated SSP of each performance obligation. The Group recognizes revenue for each performance obligation when the specified deliverable is accepted by the customer. The deferred revenue that will be recognized in the next twelve months is classified as current portion, and the remaining balance of deferred revenue is classified as non-current portion. The Group also sells insurance plan for electric scooters ("NIU Cover") to individual customers at their option. The insurance is provided by third party insurance companies. The Group determines that it acts as an agent for the NIU Cover service because it does not obtain control of the service before the service is transferred to the customers. The Group recognizes revenue on net basis when the insurance agreement is entered into between individual customers and insurance providers. Remaining performance obligations The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the Group expects to recognize these amounts in revenue. Additionally, as a practical expedient, the Group does not include contracts that have an original duration of one year or less. As of December 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was RMB47,461,086. Given the profile of contract terms, RMB45,290,053 of the remaining performance obligation is expected to be recognized as revenue within the next 12 months and RMB2,171,033 is expected to be recognized as revenue between next 12 to 24 months. (r) Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Management considers the following factors when determining the collectability of specific accounts: historical experience, credit worthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. An allowance for doubtful accounts is made and recorded into general and administrative expenses based on aging of accounts receivable and on any specifically identified accounts receivable that may become uncollectible. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Group estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Group does not have any off-balance sheet credit exposure related to its customers. A contract liability is recognized when the Group has an obligation to transfer products or services to a customer for which the Group has received consideration from the customer, or for which an amount of consideration is due from the customer. Contract liabilities are included in advances from customers and deferred revenue on the consolidated balance sheets. In accordance with the new revenue standard requirements, the Company reclassified VAT payable from advances from customers to accrued expenses and other current liabilities. The disclosure of the impact of adoption on the consolidated balance sheets was as follows: Amounts without As of adoption of December 31, 2019 Adjustments ASC 606 Advances from customers 7,478,309 497,004 7,975,313 Accrued expenses and other current liabilities 175,533,397 (497,004) 175,036,393 Changes in the Group's contract liabilities (advances from customers and deferred revenue) are presented in the following table for the year ended December 31, 2019: For the Year Ended December 31, 2019 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 3. SHORT-TERM INVESTMENTS Short-term investments consisted of the following: As of December 31, 2018 2019 RMB RMB Aggregate cost basis 120,000,000 308,150,000 Gross unrealized holding gain 241,425 2,289,321 Aggregate fair value 120,241,425 310,439,321 The Group’s short-term investments represent wealth management products issued by commercial banks in the PRC which are redeemed upon demand of the Group. The wealth management products are invested in debt securities issued by the PRC government, corporate debt securities, bank deposits, central bank bills and other securities issued by other financial institutions. As of December 31, 2018 and 2019, there were no gross unrealized holding losses. |
ACCOUNTS RECEIVABLES, NET
ACCOUNTS RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS RECEIVABLES, NET | |
ACCOUNTS RECEIVABLES, NET | 4. ACCOUNTS RECEIVABLES, NET Accounts receivables, net consisted of the following: As of December 31, 2018 2019 RMB RMB Accounts receivable 54,652,991 118,517,235 Allowance for doubtful accounts (228,146) (3,288,535) Accounts receivable, net 54,424,845 115,228,700 The movement of the allowance for doubtful accounts is as follows: For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Balance at the beginning of the year 47,846 1,956,245 228,146 Additions / (reversals) charged to bad debt expense 1,908,399 (1,215,464) 3,060,389 Write-off of bad debt allowance — (512,635) — Balance at the end of the year 1,956,245 228,146 3,288,535 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
INVENTORIES | 5. INVENTORIES Inventories consisted of the following: As of December 31, 2018 2019 RMB RMB Raw materials 120,290,456 151,975,367 Works in progress 1,948,838 1,481,938 Finished goods 20,142,911 25,175,994 Inventories 142,382,205 178,633,299 On April 5, 2018, there was a fire accident incurred at the warehouse in the Group’s rented plant facility in Jiangsu Province of PRC. RMB18,254,406 inventories damage loss was recognized in general and administrative expenses for the year ended December 31, 2018. In addition, write-downs of inventories from the carrying amount to its estimated net realizable value amounted to RMB10,491,137 for the year ended December 31, 2019, and was recorded as cost of revenues. No such write-downs was made for the years ended December 31, 2017 and 2018. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 6. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consisted of the following: As of December 31, 2018 2019 RMB RMB Advances to suppliers 15,507,866 11,124,716 Deductible input VAT and VAT rebates receivable 7,855,998 8,678,443 Staff advances 447,791 514,328 Interest receivable 659,194 5,369,826 Others* 2,449,105 5,294,818 Prepayments and other current assets 26,919,954 30,982,131 * Others mainly include deposits receivable. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 7. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: As of December 31, 2018 2019 RMB RMB Machinery and equipment 22,615,657 47,307,840 Furniture 36,630,720 76,258,884 Office and electronic equipment 9,071,471 16,909,504 Leasehold improvement 2,116,266 4,081,766 Motor vehicles 802,251 1,173,634 Building and building improvements — 64,887,245 Property, plant and equipment 71,236,365 210,618,873 Less: Accumulated depreciation (30,251,191) (59,727,529) Property, plant and equipment, net 40,985,174 150,891,344 Depreciation expense was RMB9,049,769, RMB16,808,987 and RMB29,501,123 for the years ended December 31, 2017, 2018 and 2019, respectively. Depreciation expense on property, plant and equipment was allocated to the following expense items: For the Year ended December 31, 2017 2018 2019 RMB RMB RMB Cost of revenues 4,217,126 4,638,662 6,109,583 General and administrative expenses 1,873,711 2,261,620 3,403,502 Selling and marketing expenses 2,646,204 9,438,501 19,025,624 Research and development expenses 312,728 470,204 962,414 Total depreciation expense 9,049,769 16,808,987 29,501,123 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: As of December 31, 2018 Gross Net Amortization carrying Accumulated carrying RMB period amount amortization amount Trademarks 5 years 8,564,505 (1,427,418) 7,137,087 Domain name 5 years 3,484,000 (2,903,333) 580,667 Total 12,048,505 (4,330,751) 7,717,754 As of December 31, 2019 Gross Net Amortization carrying Accumulated carrying RMB period amount amortization amount Trademarks 5-10 years 8,911,271 (3,193,738) 5,717,533 Domain name 5-10 years 3,821,474 (3,517,748) 303,726 License 10 years 1,943,396 (184,906) 1,758,490 Total 14,676,141 (6,896,392) 7,779,749 Amortization expense on intangible assets was allocated to the following expense items: For the Year ended December 31, 2017 2018 2019 RMB RMB RMB Cost of revenues — — 184,906 General and administrative expenses 696,800 2,072,389 2,336,803 Total amortization expense 696,800 2,072,389 2,521,709 As of December 31, 2019, estimated amortization expense of the existing intangible assets for each of the next five years is RMB1,969,336, RMB1,969,336, RMB1,969,336, RMB535,118 and RMB248,274, respectively. |
LAND USE RIGHT, NET
LAND USE RIGHT, NET | 12 Months Ended |
Dec. 31, 2019 | |
LAND USE RIGHT, NET | |
LAND USE RIGHT, NET | 9.LAND USE RIGHT, NET Land use right, net consisted of the following: As of December 31, 2018 2019 RMB RMB Gross carrying amount — 34,761,487 Less: Accumulated amortization — (405,551) Land use right, net — 34,355,936 Amortization expense of RMB405,551 was recognized in general and administrative expenses for the year ended December 31, 2019. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 10.OTHER NON-CURRENT ASSETS Other non-current assets consisted of the following: As of December 31, 2018 2019 RMB RMB Prepayments for land use right 10,000,000 — Others* 6,805,474 6,522,561 Other non-current assets 16,805,474 6,522,561 * Others mainly include deposits and prepayments for equipment and intangible assets. |
SHORT-TERM BANK BORROWINGS AND
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | |
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | 11 . SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH As of December 31, 2018 2019 RMB RMB East West Bank loan 99,978,003 48,910,799 Bank of China loan 20,000,000 20,000,000 SPD Silicon Valley Bank loan 60,000,000 120,000,000 Bank of Ningbo loan — 28,483,333 Short-term bank borrowings 179,978,003 217,394,132 In December 2015 and March 2016, Jiangsu Xiaoniu Diandong Technology Co., Ltd. (“Jiangsu Xiaoniu”), a subsidiary of Beijing Niudian, entered into two line-of-credit agreements with East West Bank that provided a one-year term revolving credit facility up to RMB100,000,000, in aggregate with interest rate of 2.8% per annum. All drawdowns are due within one year from the drawdown date. To collateralize these lines of credits, the Company and Niu Technologies Group Limited, a subsidiary of the Company incorporated in Hong Kong S.A.R., made deposits of US$16,000,000 (equivalent to RMB103,674,877) in aggregate at East West Bank. The Group can apply for withdrawing the restricted cash when borrowing drawdowns are repaid. As of December 31, 2018, the line-of-credit agreements were subsequently amended several times, related to 1) increase the interest rate to 4.75% per annum and 2) extend the maturity date to April 15, 2020. In October and November 2019, RMB35,930,480 and RMB52,933,631 of the loans were repaid, respectively, and the relative restricted cash was released. In November 2019, Jiangsu Xiaoniu applied a new drawdown of RMB37,796,907 with an interest rate of 4.2% per annum. As of December 31, 2018 and 2019, total outstanding balances of these loans were RMB99,978,003 and RMB48,910,799, respectively. Total outstanding balances of restricted cash were equivalent to RMB109,811,200 and RMB56,525,358, respectively. On April 15, 2020, Jiangsu Xiaoniu repaid all the loans and the restricted cash was released accordingly. In August 2017, Jiangsu Xiaoniu entered into a short-term bank borrowing agreement with Bank of China (the "2017 BOC Loan") that provides a six‑month RMB10,000,000 loan bearing interest at 4.5675% per annum. Mr. Yi’nan Li, the founder and a board member of the Company until June 8, 2018, Mr. Changlong Sheng, a shareholder of the Company, Beijing Niudian and its subsidiary Shanghai Niudian Trading Co., Ltd., and Jiangsu Xiaoniu’s subsidiary Changzhou Niudian International Trading Co., Ltd. (“Changzhou Niudian”) provided joint liability guaranties for the loan. On February 5, 2018, Jiangsu Xiaoniu fully repaid the 2017 BOC Loan. On February 8, 2018, Jiangsu Xiaoniu obtained a new one-year short-term bank borrowing of RMB20,000,000, which bears interest rate at 4.5675% per annum, from Bank of China (the "2018 BOC Loan"). The guaranties for this loan are as same as the 2017 BOC Loan. The loan was fully repaid by Jiangsu Xiaoniu in December 2018. In December 2018, Jiangsu Xiaoniu obtained a new one-year short-term bank borrowing of RMB20,000,000, which bears interest at a rate of 4.5675% per annum, from Bank of China (the "2019 BOC Loan"). The guarantees for this loan are the same as for the previous loan in February 2018. The 2019 BOC Loan was fully repaid by Jiangsu Xiaoniu in December 2019. On December 12, 2019, Jiangsu Xiaoniu obtained a new one-year short-term bank borrowing of RMB20,000,000, which bears interest at a rate of 4.5675% per annum, from Bank of China (the “2020 BOC Loan”). Beijing Niudian and Changzhou Niudian provided joint liability guaranties for the 2020 BOC Loan. As of December 31, 2019, the outstanding balance of the 2020 BOC Loan was RMB20,000,000. In November 2017, Jiangsu Xiaoniu entered into a line-of-credit agreement with SPD Silicon Valley Bank that provides a one-year term credit facility of up to RMB60,000,000. The interest rate of the loan is at standard rate published by People’s Bank of China. To collateralize this line of credit, the Company made deposits of US$10,000,000 (equivalent to RMB66,288,600) at the bank which remained restricted until February 7, 2019. In November 2018, the line-of-credit agreement was amended to extend the maturity date to March 15, 2019. In March 2019, the maturity date of the line-of-credit agreement was extended to June 12, 2019, as well as the corresponding restricted cash. On June 12, 2019, Jiangsu Xiaoniu repaid the loan and the restricted cash was released. On June 12, 2019, Jiangsu Xiaoniu, Beijing Niudian and Changzhou Niudian jointly entered into a line-of-credit agreement with SPD Silicon Valley Bank that provides a one-year term credit facility of up to RMB120,000,000. The interest rate of the drawn down funds was at 4.35% per annum. To collateralize this line of credit, the Company made deposits of US$19,149,307 (equivalent to RMB132,000,000) at the bank which remained restricted until September 11, 2020. On June 12, 2019, Jiangsu Xiaoniu and Changzhou Niudian obtained loans from SPD Silicon Valley Bank in amounts of RMB60,000,000 and RMB60,000,000, respectively, with a one-year term to June 12, 2020. As of December 31, 2019, the balance of the drawdown to under this line of credit was RMB120,000,000. On January 23, 2019, Beijing Niudian entered into an agreement with Bank of Ningbo who provided a one- year short-term bank borrowing of RMB28,483,333 bearing interest at 5.32% per annum. To collateralize this borrowing, Niudian Information deposited RMB30,000,000 in Bank of Ningbo as collateral. As of December 31, 2019, outstanding balances of the borrowing and the restricted cash were RMB28,483,333 and RMB30,000,000, respectively. On January 22, 2020, Beijing Niudian repaid the borrowing and the restricted cash was released. |
CONVERTIBLE LOAN
CONVERTIBLE LOAN | 12 Months Ended |
Dec. 31, 2019 | |
CONVERTIBLE LOAN | |
CONVERTIBLE LOAN | 12. CONVERTIBLE LOAN On December 16, 2016, the Company entered a convertible loan agreement (the "2016 Convertible Loan") with Glory Achievement Fund Limited, GGV Capital V L.P., GGV Capital V Entrepreneurs Fund L.P., Hyperfinite Galaxy Holding Limited, Plum Angel Investment Co., Ltd., and Future Capital Discovery Fund I, L.P. (collectively "2016 Convertible Loan Holders") to obtain a loan of US$16,827,000 (equivalent to RMB115,808,672) in aggregate with one-year term. 2016 Convertible Loan Holders were entitled to an option to convert all or part of the outstanding principal of the 2016 Convertible Loan to the Company’s preferred shares upon next round of financing. The interest rate of 2016 convertible loan was 5% per annum provided that no interest should be accrued on the outstanding principal amount, if the entire or any portion of the principal amount was converted to the Company’s preferred shares. The conversion price should be the per share price based on valuation of the Company at 80% of lower of US$260,400,000 or the pre-money valuation in the next round financing. If the conversion price was based on a valuation equal to 80% of US$260,400,000, the 2016 convertible loan should be converted to Series A‑3 Preferred Shares. If the conversion price was based on a valuation lower than 80% of US$260,400,000, the 2016 Convertible Loan should be converted to preferred shares with the same terms and the same rights and obligation as the preferred shares any new investors might have in the next round of financing. As the conversion price was not determinable at the issuance date, there was no noncontingent beneficial conversion feature. As such, the 2016 Convertible Loan was not in whole or in part classified as a component of equity. The Company elected to measure the 2016 Convertible Loan in its entirety at fair value with amount of changes in fair value recognized in earnings in consolidated statements of comprehensive (loss) / income. The Company adopted a scenario-weighted average method to estimate the fair value of the convertible loan as of December 31, 2017 and the conversion date based on the probability of each scenario and pay-off of convertible loan under each scenario. The scenarios included different timing of next round financing and corresponding conversion price of the convertible loan. The 2016 Convertible Loan was converted to 10,119,329 Series A‑3 Preferred Shares at the price of US$1.66 per share on March 26, 2018 (Note 15). |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2018 2019 RMB RMB Accrued payroll and social insurance 32,008,825 30,780,693 Warranty—current 31,262,442 41,809,564 Sales rebate 34,029,433 40,344,717 Construction payable — 18,765,855 Deposits 16,360,762 16,293,035 Deferred ADR income 4,250,126 — Other taxes payable 3,656,732 10,273,637 IPO cost payable 3,130,639 — Interest payable 318,774 2,010,366 Others* 9,166,293 15,255,530 Accrued expenses and other current liabilities 134,184,026 175,533,397 * Others mainly include employee options payable and accrued marketing expenses. The Group provides limited warranty to its end customers for terms varying from six months to three years, subject to certain conditions, such as normal use. For the electric motor, the Group provides a 24-month or 30,000‑kilometer warranty. For lithium-ion battery packs, the Group provides 24‑month or 20,000‑kilometer warranty or a 36‑month or 30,000‑kilometer warranty, depending on the model. For other parts of the Group’s smart electric-scooters, the Group provides quality warranty varying from six months to 24 months depending on the parts. The Group is responsible for replacing or repairing the faulty products during their respective warranty terms. The Group provides for the estimated costs of warranties at the time revenue is recognized. Factors that affect the Group’s warranty obligation include product defect rates and costs of repair or replacement. Movement of provision for warranty is as follows: For the Year ended December 31, 2017 2018 2019 Accrued warranty—beginning of year 17,649,411 30,648,678 48,872,284 Accrual for warranties issued during the year 27,395,169 29,346,974 40,271,444 Warranty claims paid (14,395,902) (7,923,760) (22,132,194) Pre-existing warranty expired — (3,199,608) (7,059,668) Accrued warranty—end of year 30,648,678 48,872,284 59,951,866 |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT LIABILITIES | |
OTHER NON-CURRENT LIABILITIES | 14.OTHER NON-CURRENT LIABILITIES Other non-current liabilities consisted of the following: As of December 31, 2018 2019 RMB RMB Warranty—non-current 17,609,842 18,142,302 Deposits for construction of building —non-current — 4,216,666 Other non-current liabilities 17,609,842 22,358,968 |
REDEEMABLE CONVERTIBLE PREFERRE
REDEEMABLE CONVERTIBLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2019 | |
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |
REDEEMABLE CONVERTIBLE PREFERRED SHARES | 15. REDEEMABLE CONVERTIBLE PREFERRED SHARES On March 5, 2015, the Company issued convertible loan of US$3.9 million to GGV Capital V L.P., GGV Capital V Entrepreneurs Fund L.P., IDG China Venture Capital Fund IV L.P., and IDG China IV Investors L.P. in aggregate (the "2015 Convertible Loan"), which carried nil interest and was due by September 5, 2015. On May 27, 2015, the Company issued 16,666,667 Series A‑1 Preferred Shares at US$1.20 per share, of which 3,250,000 Series A‑1 Preferred Shares were issued upon conversion the 2015 Convertible Loan. The total proceeds from the issuance of Series A‑1 Preferred Shares was US$16,100,000 (equivalent to RMB101,208,371). On May 27, 2015, the Company issued 3,608,247 Series A‑2 redeemable convertible preferred shares ("Series A‑2 Preferred Shares") at US$1.66 per share. The total proceeds from the issuance of Series A‑2 Preferred Shares was US$6,000,000 (equivalent to RMB36,720,422). On January 29, 2016, the Company issued 5,003,436 Series A‑3 Preferred Shares at US$2.08 per share. The total proceeds from the issuance of Series A‑3 Preferred Shares was US$10,400,000 (equivalent to RMB67,883,227). On March 26, 2018, the holders of 2016 Convertible Loan converted the entire outstanding principal of the 2016 Convertible Loan of US$16,827,000 to 10,119,329 Series A-3 Preferred Shares at the conversion price of US$1.66 per share. The carrying amount of 2016 Convertible Loan of RMB181,112,874 as of March 26, 2018 was recorded as the initial amount reported in Series A-3 Preferred Shares. On March 26, 2018, the Company issued 5,137,859 Series B redeemable convertible preferred shares ("Series B Preferred Shares") at the price of US$4.96 per share to Plum Angel Investment Co., Ltd., GGV Capital V L.P., GGV Capital V Entrepreneurs Fund L.P., GGV Capital Select L.P., Phoenix Wealth Investment (Holdings) Limited, Future Capital Discovery Fund I, L.P., IDG China Venture Capital Fund IV L.P. and IDG China IV Investors L.P. in aggregate. The total proceeds from the issuance of Series B Preferred Shares was US$25,500,000 (equivalent to RMB161,392,196). The Company classified Series A‑1 Preferred Shares, Series A‑2 Preferred Shares, Series A‑3 Preferred Shares (collectively "Series A Preferred Shares"), and Series B Preferred Shares as mezzanine equity in the consolidated balance sheets since they were contingently redeemable at the option of the holders after a specified time period. The Company evaluated the embedded conversion option in the Series A Preferred Shares and Series B Preferred Shares to determine if the embedded conversion option require bifurcation and accounting for as a derivative. The Company concluded the embedded conversion option did not need to be bifurcated pursuant to ASC 815 Derivatives and Hedging . The Company also determined that there was no beneficial conversion feature attributable to the Series A Preferred Shares and Series B Preferred Shares because the initial effective conversion prices of these shares were higher than the fair value of the Company’s ordinary shares at the relevant commitment dates. The fair value of the Company’s ordinary shares on the commitment date was estimated by management with the assistance of an independent valuation firm. The Company also determined there was no other embedded features to be separated from Series A Preferred Shares or Series B Preferred Shares. The rights, preferences and privileges of the redeemable convertible preferred shares were as follows: Redemption Rights The redemption date of Series A Preferred Shares was at any time: (i) after the fifth-year anniversary of May 27, 2015, subject to the applicable laws of the Cayman Islands; or (ii) any holder of any other class of shares elects to exercise its redemption right. The redemption date of Series B Preferred Shares was at any time: (i) after the fifth-year anniversary of March 26, 2018, subject to the applicable laws of the Cayman Islands; or (ii) any holder of any other class of shares elects to exercise its redemption right. The Company should redeem, up to all of the outstanding Series A Preferred Shares and Series B Preferred Shares out of funds legally available therefor including capital in accordance with the agreement, provided, however, that no Series A redemption price should be paid until the Series B redemption price with respect to the Series B Preferred Shares requested to be redeemed was paid. The redemption price for Series A Preferred Shares or Series B Preferred Shares, should be the sum of their issue price, all accrued dividends, and any declared but unpaid dividends thereon up to the date of redemption. Conversion Rights Each redeemable convertible preferred share was convertible, at the option of the holder, at any time after the issuance date according to a conversion ratio, subject to adjustments for dilution, including but not limited to stock splits, stock dividends and certain other events. Each redeemable convertible preferred share was convertible into a number of ordinary shares determined by dividing the applicable original issuance price by the conversion price. The conversion price of each redeemable convertible preferred share was the same as its original issuance price and no adjustments to conversion price have occurred. As of December 31, 2017, each redeemable convertible preferred share was convertible into one ordinary share. Each Series A Preferred Share should automatically be converted into Ordinary Shares at a 1‑to‑1 initial conversion ratio immediately upon the closing of a Qualified Initial Public Offering ("Qualified IPO"), and approved by the holders of more than two-thirds of the Series A Preferred Shares. Each Series B Preferred Share should automatically be converted into Ordinary Shares at a 1-to-1 initial conversion ratio immediately upon the closing of a Qualified IPO, and approved by the holders of more than half of the Series B Preferred Shares. A "Qualified IPO" was defined as the closing of a firm commitment underwritten public offering of the Ordinary Shares (or depositary receipts or depositary shares therefor) in the United States pursuant to an effective registration statement under the United States Securities Act of 1933, as amended, with an offering price per share (net of underwriting commissions and expenses) that reflected the valuation of the Company immediately prior to such offering of at least US$1,000,000,000 and that resulted in gross proceeds to the Company of at least US$100,000,000, or in a public offering of the Ordinary Shares in the Hong Kong S.A.R. or any other jurisdiction which resulted in the Ordinary Shares trading publicly on a recognized international securities exchange so long as the offering price per share (net of underwriting commissions and expenses) satisfied the foregoing pre-offering valuation and gross proceeds requirements, in each case, unless such requirements were waived by the holders of more than two-thirds of the Series A Preferred Shares. Voting Rights Each redeemable convertible preferred share should be entitled to that number of votes corresponding to the number of ordinary shares on an as-converted basis. Redeemable convertible preferred share should vote separately as a class with respect to certain specified matters. Otherwise, the holders of redeemable convertible preferred shares, convertible preferred shares and ordinary shares should vote together as a single class. Dividend Rights Prior to the issuance of Series B Preferred Shares in March 2018, each holder of Series A Preferred Shares should be entitled to receive dividends payable only when, as and if declared by the majority of the Board, out of any assets at the time legally available therefor, in preference and priority to any declaration or payment of any dividends on Ordinary Shares, Series Seed convertible preferred shares ("Series Seed Preferred Shares") or any other class or series of shares issued by the Company, and should participate in any subsequent distribution among the Ordinary Shares, Series Seed Preferred Shares and all other classes or series of shares issued by the Company pro rata based on the number of Ordinary Shares held by such holder of Series A Preferred Shares (calculated on an as-converted basis). Upon the issuance of Series B Preferred Shares and amendment and restatement of Memorandum of Association thereupon in March 2018, each holder of a Series A Preferred Share should be entitled to receive dividends payable only when, as and if declared by the majority of the Board, out of any assets at the time legally available therefor, in preference and priority to any declaration or payment of any dividends on Ordinary Shares, Series Seed Preferred Shares, or any other class or series of shares issued by the Company (other than Series B Preferred Shares), and should participate in any subsequent distribution among the Ordinary Shares, Series Seed Preferred Shares and all other classes or series of shares issued by the Company pro rata based on the number of Ordinary Shares held by such holder of Series A Preferred Shares (calculated on an as-converted basis). Liquidation Preferences Prior to the issuance of Series B Preferred Shares in March 2018, in the event of any liquidation including deemed liquidation, dissolution or winding up of the Company, holders of the Series A Preferred Shares should be entitled to receive a per share amount equal to 150% of the original preferred share issue price of the respective series of preferred shares, as adjusted for share dividends, share splits, combinations, recapitalizations or similar events, plus all accrued and declared but unpaid dividends thereon, in the following sequence: Series A Preferred Shares and Series Seed Preferred Shares. After such liquidation amounts have been paid in full, any remaining funds or assets of the Company legally available for distribution to shareholders should be distributed on a pro rata, pari passu basis among the holders of the then outstanding preferred shares (on an as-converted basis), together with the holders of the then outstanding ordinary shares. Upon the issuance of Series B Preferred Shares and amendment and restatement of Memorandum of Association thereupon in March 2018, in the event of any liquidation including deemed liquidation, dissolution or winding up of the Company, holders of the Series A and Series B Preferred Shares should be entitled to receive a per share amount equal to 150% of the original preferred share issue price of the respective series of preferred shares, as adjusted for share dividends, share splits, combinations, recapitalizations or similar events, plus all accrued and declared but unpaid dividends thereon, in the following sequence: Series B Preferred Shares, Series A Preferred Shares and Series Seed Preferred Shares. After such liquidation amounts had been paid in full, any remaining funds or assets of the Company legally available for distribution to shareholders should be distributed on a pro rata, pari passu basis among the holders of the then outstanding preferred shares (on an as-converted basis), together with the holders of the then outstanding ordinary shares. With approval from the holders of Series A Preferred Shares and Series B Preferred Shares and waiver of the Qualified IPO from the holders of Series A Preferred Shares, all of the redeemable convertible preferred shares were converted to Class A ordinary shares immediately prior to the completion of the Company’s initial public offering on October 19, 2018. The Company's redeemable convertible preferred shares activities consisted of the following: Series A-2 Series A-3 Series B Preferred Preferred Preferred Series A-1 Preferred Shares Shares Shares Shares Carrying Subscription Carrying Carrying Carrying RMB amount receivable amount amount amount Total Balance as of January 1, 2017 138,740,003 — 41,621,992 72,144,418 — 252,506,413 Foreign currency translation adjustment (8,056,000) — (2,416,800) (4,189,098) — (14,661,898) Balance as of December 31, 2017 130,684,003 — 39,205,192 67,955,320 — 237,844,515 Issuance of preferred shares — — — 181,112,874 161,392,196 342,505,070 Foreign currency translation adjustment 8,090,000 — 2,427,000 21,651,035 15,544,654 47,712,689 Conversion to Ordinary Shares (138,774,003) — (41,632,192) (270,719,229) (176,936,850) (628,062,274) Balance as of December 31, 2018 and 2019 — — — — — — |
ORDINARY SHARES AND SERIES SEED
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2019 | |
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | |
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | 16. ORDINARY SHARES AND SERIES SEED PREFERRED SHARES Ordinary Shares The Company’s Memorandum and Articles of Association authorizes the Company to issue 444,721,650 ordinary shares of US$0.0001 par value as of December 31, 2017. On March 26, 2018, the Company repurchased 432,000 ordinary shares from Niu Holding Inc. beneficially owned by Mr. Token Yilin Hu at total consideration of US$665,000 (equivalent to RMB4,202,335). Such shares were cancelled immediately upon repurchase. In October 2018, the Company completed its initial public offering (“the IPO”) of 14,000,000 newly issued Class A ordinary shares, at a public offering price of US$4.5 per share. The net proceeds after deducting underwriting commissions and discounts were US$58,590,000 (equivalent to RMB406,538,433). Immediately prior to the completion of the IPO, the Company’s authorized share capital was increased to US$500,000 divided into 5,000,000,000 shares comprising of (i) 4,900,000,000 Class A ordinary shares with a par value of US$0.0001 each, (ii) 50,000,000 Class B ordinary shares with a par value of US$0.0001 each and (iii) 50,000,000 shares with a par value of US$0.0001 each of such class or classes (however designated) as the board of directors may determine in accordance with the Company’s post-offering Memorandum and Articles of Association. Immediately prior to the completion of the IPO, all outstanding preferred shares, including (i) 30,000,000 Series Seed Preferred Shares with a par value of US$0.0001 each, (ii) 16,666,667 of Series A-1 Preferred Shares with a par value of US$0.0001 each, (iii) 3,608,247 of Series A-2 Preferred Shares with a par value of US$0.0001 each, (iv) 15,122,765 Series A-3 Preferred Shares with a par value of US$0.0001 each, and (v) 5,137,859 of Series B Preferred Shares with a par value of US$0.0001 each, were converted into Class A ordinary shares on a one-for-one bases. All outstanding ordinary shares were re-designated and re-classified as Class A ordinary shares on a one-for-one basis, except that 6,615,000 ordinary shares held by ELLY Holdings Limited and 14,027,020 ordinary shares held by Niu Holding Inc. were re-classified and re-designated as Class B ordinary shares on a one-for-one basis. Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share entitles the holder to one vote on all matters subject to vote at general meetings of the Company, and each Class B ordinary share entitles the holder to four votes on all matters subject to vote at general meetings of the Company. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. On September 5, 2019, a Class B ordinary shareholder converted 1,400,000 Class B ordinary shares to Class A ordinary shares. As of December 31, 2019, there were 130,174,878 and 19,242,020 Class A and Class B ordinary shares outstanding, respectively. Series Seed Preferred Shares The Company’s Memorandum and Articles of Association authorizes the Company to issue 30,000,000 Series Seed Preferred Shares of US$0.0001 par value as of December 31, 2017. Series Seed Preferred Shares were not redeemable and were convertible to ordinary shares at a one-for-one initial conversion ratio at the option of the holder at any time after the date of issuance. The liquidation preference of Series Seed Preferred Shares was preferable to ordinary shares but subordinated to redeemable convertible preferred shares as disclosed in Note 15. Voting rights and dividend rights of Series Seed Preferred Shares were as same as ordinary shares. Immediately prior to the completion of the IPO, all outstanding Series Seed Preferred Shares were converted into Class A ordinary shares on one-for-one bases. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 17. SHARE-BASED COMPENSATION Restricted ordinary shares In May 2015, Mr. Yi’nan Li, Mr. Token Yilin Hu, Ms. Yuqin Zhang and Niu Holding Inc. entered into an arrangement with other investors of the Company, whereby all of their 59,459,020 ordinary shares became restricted and subject to service vesting conditions. The restricted ordinary shares vested equally in four years from the date of imposition of the restriction , which was accelerated in the event of the Company’s IPO. The restricted ordinary shares were subject to repurchase by the Company upon termination of Mr. Yi’nan Li, Mr. Token Yilin Hu and Ms. Yuqin Zhang’s service with the Group. The Company had the right, at its sole discretion, to repurchase restricted ordinary shares at its par value within 60 days after the termination. The restricted ordinary shares were not transferable prior to be vested. Other than the restriction on transfer and service vesting conditions, restricted ordinary shareholders had all other rights and privileges as ordinary shareholders. Compensation cost was measured for the restricted ordinary shares using the estimated fair value of the Company’s ordinary shares of US$0.53 per share at the date of imposition of the restriction in May 2015, and was amortized to consolidated statements of comprehensive (loss)/income on a straight-line basis over the vesting term of four years. In February 2016, Ms. Yuqin Zhang resigned from the Group and the Company determined not to repurchase restricted ordinary shares held by Ms. Yuqin Zhang. As such, all restricted ordinary shares held by Ms. Yuqin Zhang vested immediately, compensation cost of RMB7,574,133 was recognized immediately when the service condition was waived. On January 7, 2016, the shareholders of the Company approved a modification of 3,307,500 restricted ordinary shares owned Mr. Yi’nan Li, through Niu Holding Inc.. Such number of restricted ordinary shares vested immediately and became transferable. Unrecognized compensation cost of RMB9,803,035 of 3,307,500 shares was recognized upon modification. Mr. Yi’nan Li transferred 3,307,500 ordinary shares to ELLY Holdings Limited, an entity owned by Dr. Yan Li, the new Chief Operating Officer of the Company who became the Chief Executive Officer of the Company in December 2017. On January 7, 2016, the Company also issued 3,307,500 restricted ordinary shares to ELLY Holdings Limited at par value. As a result of these transactions, ELLY Holdings Limited collectively owned 6,615,000 restricted ordinary shares which vested annually in equal instalments over four years from January 7, 2016. On January 7, 2016, the Company also issued 1,804,000 restricted ordinary shares to Smart Power Group Limited, an entity owned by Mingming Huang, a new member of Board of Directors of the Company. 25% of the restricted ordinary shares vested on May 27, 2016 and the remaining 75% of the restricted ordinary shares vested annually in equal instalments over the next three years. On June 8, 2018, Mr. Yi'nan Li and Mr. Mingming Huang resigned from the Company and the Company determined not to repurchase 9,798,125 and 451,000 restricted ordinary shares held by Mr. Yi'nan Li and Mr. Mingming Huang, respectively. It represented a modification to accelerate vesting. Compensation cost of RMB173,156,580 was recognized immediately as general and administrative expenses upon the modification. On October 19, 2018, the remaining restricted ordinary shares of Mr. Token Yilin Hu and Dr. Yan Li were vested immediately upon the Company’s initial public offering. Compensation cost of RMB8,935,076 and RMB10,535,229 was immediately recognized as research and development expenses and general and administrative expenses, respectively. The total fair value of shares vested during the years ended December 31, 2017 and 2018 was RMB58,848,966 and RMB264,075,922, respectively . Total compensation expenses recognized for restricted ordinary shares for the years ended December 31, 2017 and 2018 were allocated to the following expense items: For the year ended December 31, 2017 2018 RMB RMB Research and development expenses 13,045,853 18,371,203 General and administrative expenses 46,185,090 207,871,076 Total restricted ordinary shares compensation expense 59,230,943 226,242,279 As of December 31, 2018, there was no unrecognized compensation expense related to restricted ordinary shares. Transfer of ordinary shares On June 8, 2018, Mr. Token Yilin Hu transferred 2,000,000 ordinary shares beneficially owned through Niu Holdings Inc. to Mr. Carl Chuankai Liu, the vice president of design of the Company at nil consideration. The Company accounted for such transfer as share-based compensation as the ordinary shares were granted to Mr. Carl Chuankai Liu as compensation for his services provided to the Group. As there was no service condition, RMB33,537,572 share-based compensation expenses were recognized in research and development expenses immediately upon transfer. Share options and restricted share units a) 2016 Global Incentive Plan In January 2016, the Company's Shareholders and Board of Directors approved 2016 Global Share Incentive Plan and amended it in March 2018 (the "Amended 2016 Plan"). Under the Amended 2016 Plan, a maximum aggregate number of 5,861,480 ordinary shares may be issued pursuant to all awards granted. Share options or restricted share unites expire 10 years from the grant date. As of December 31, 2019, the Company has granted under the 2016 Plan: (i) 4,540,000 share options with exercise price of US$0.20 per share and vesting schedule of 40% vesting on the second anniversary of the grant date and the remaining vesting in three equal annual installments; (ii) 705,196 share options with exercise price of nil and vesting in four equal annual installments; (iii) 100,000 restricted share units and vesting in two equal annual installments; and (iv) 428,000 restricted share units with vesting in four equal annual installments. b) 2018 Share Incentive Plan In September 2018, the Company’s Shareholders and Board of Directors approved the 2018 Share Incentive Plan (the “2018 Plan”). Under the 2018 Plan, the maximum aggregate number of ordinary shares available for issuance is 6,733,703 ordinary shares, which shall be increased by a number equal to 1.5% of the total number of ordinary shares issued and outstanding on the last day of the immediately preceding fiscal year, each fiscal year during the term of the 2018 Plan, if determined and approved by the board of directors for the relevant fiscal year. In November 2019, the board of directors approved an increase by 2,230,111 ordinary shares, representing 1.5% of total issued and outstanding shares at the end of 2018 pursuant to the 2018 Share Incentive Plan. As of December 31, 2019, the Company has granted under the 2018 Plan: (i) 4,180,000 share options with exercise price of US$3.425 and vesting in four equal annual installments; and (ii) 1,266,600 restricted share units with vesting in four equal annual installments. A summary of the share options activities under the Amended 2016 Plan and the 2018 Plan for the year ended December 31, 2019 is presented below: Weighted Weighted remaining Number of average exercise contractual Aggregate share price years intrinsic value US$ US$ Outstanding at January 1, 2019 5,314,246 0.17 Granted 4,180,000 3.43 Exercised (742,840) 0.19 Forfeited (69,050) 0.20 Outstanding at December 31, 2019 8,682,356 1.74 8.18 21,950,316 Exercisable as of December 31, 2019 2,387,959 0.19 6.44 9,738,313 The fair value of the options granted is estimated on the grant dates using the binomial option pricing model with the following key assumptions used: Grant Date: 2017 2018 2019 Risk-free rate of return (per annum) 2.25% - 2.48% 2.78%-3.13% 1.90% Volatility 51.7% - 54.4% 49.9%-50.9% 47.9% Expected dividend yield 0% 0% 0% Exercise multiple 2.2 2.2 2.2-2.8 Fair value of underlying ordinary share US$0.44 - US$1.22 US$2.05 - US$4.10 US$3.425 Expected term (in years) 10 10 10 The expected volatility was estimated based on the historical volatility of the Company and comparable peer public companies with a time horizon close to the expected term of the Company’s options. The risk-free interest rate was estimated based on the yield to maturity of U.S. treasury bonds denominated in USD for a term consistent with the expected term of the Company’s options in effect at the option valuation date. The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it has considered the statistics on exercise patterns of employees compiled by Huddart and Lang in Huddart, S., and M. Lang. 1996. "Employee Stock Option Exercises: An Empirical Analysis." Journal of Accounting and Economics , vol. 21, no. 1 (February):5‑43, which are widely adopted by valuers as authoritative guidance on expected exercise multiples. Expected dividend yield is zero as the Company has never declared or paid any cash dividends on its shares, and the Company does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the option. The weighted average grant date fair value of the share options granted for the years ended December 31, 2017, 2018 and 2019 was US$0.86, US$2.11 and US$1.62, respectively. Compensation costs recognized for share options for the years ended December 31, 2017, 2018 and 2019 were allocated to the following expense items: For the year ended December 31, 2017 2018 2019 RMB RMB RMB Cost of revenues 253,545 246,947 255,679 Selling and marketing expenses 1,611,160 2,124,728 2,471,725 Research and development expenses 832,782 955,538 3,060,263 General and administrative expenses 598,668 2,392,740 6,232,590 Total share option compensation expense 3,296,155 5,719,953 12,020,257 As of December 31, 2019, RMB56,411,059 of total unrecognized compensation expense related to share options is expected to be recognized over a weighted average period of approximately 3.31 years. A summary of the restricted share units activities for the year ended December 31, 2019 is presented below: Weighted average grant Number of date fair shares value US$ Unvested as of January 1, 2019 100,000 4.33 Granted 1,694,600 3.62 Vested (50,000) 4.33 Forfeited — — Unvested as of December 31, 2019 1,744,600 3.64 Compensation costs recognized for restricted share units for the years ended December 31, 2018 and 2019 were allocated to the following expense items: For the year ended December 31, 2018 2019 RMB RMB Cost of revenues — 36,332 Selling and marketing expenses — 2,185,586 Research and development expenses — 1,146,846 General and administrative expenses 375,123 4,233,758 Total share option compensation expense 375,123 7,602,522 As of December 31, 2019, RMB37,794,188 of total unrecognized compensation expense related to restricted share units is expected to be recognized over a weighted average period of approximately 3.36 years. Total share-based compensation expenses recognized for the years ended December 31, 2017, 2018 and 2019 were allocated to the following expense items: For the year ended December 31, 2017 2018 2019 RMB RMB RMB Cost of revenues 253,545 246,947 292,011 Selling and marketing expenses 1,611,160 2,124,728 4,657,311 Research and development expenses 13,878,635 52,864,313 4,207,109 General and administrative expenses 46,783,758 210,638,939 10,466,348 Total share-based compensation expense 62,527,098 265,874,927 19,622,779 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 18. FAIR VALUE MEASUREMENT The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2019, respectively: December 31, 2019 Total RMB Level 1 Level 2 Level 3 Fair Value Assets Short-term investments (Note 3) — 310,439,321 — 310,439,321 December 31, 2018 Total RMB Level 1 Level 2 Level 3 Fair Value Assets Short-term investments (Note 3) — 120,241,425 — 120,241,425 The table below reflects the reconciliation from the opening balances to the closing balances for a convertible loan, a recurring fair value measurement categorized as Level 3 of the fair value hierarchy, for the years ended December 31, 2017 and 2018, respectively: For the Year Ended December 31, 2017 2018 Convertible loan - beginning of year 116,728,899 151,557,796 Change in fair value 43,006,399 34,499,858 Conversion to Series A-3 Preferred Shares — (181,112,874) Foreign currency translation adjustment (8,177,502) (4,944,780) Convertible loan - end of year 151,557,796 — |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAX | |
INCOME TAX | 19. INCOME TAX a) Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. No stamp duty is payable in respect of the issue of the shares or on an instrument of transfer in respect of a share. Indonesia Under the current laws of the Republic of Indonesia, the Company's subsidiaries in Indonesia are subject to 25% income tax on its taxable income generated from operations in Indonesia. Hong Kong Under the Hong Kong tax laws, subsidiaries in Hong Kong are subject to the Hong Kong profits tax rate at 16.5% and they are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. A two-tiered profits tax rates regime was introduced in 2018 where the first HK$2 million of assessable profits earned by a company will be taxed at half of the current tax rate (8.25%) whilst the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong for any of the periods presented. PRC The Group’s PRC subsidiaries, the VIE, and VIE’s subsidiaries are subject to the PRC Corporate Income Tax Law ("CIT Law") and are taxed at the statutory income tax rate of 25%, unless otherwise specified. The CIT Law also provides that an enterprise established under the laws of a foreign country or region but whose " de facto management body" is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the CIT Law define the location of the " de facto management body" as "the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, etc., of a non-PRC company is located." Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside the PRC should be considered a resident enterprise for PRC tax purposes. The components of (loss) / income before income taxes are as follows: For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Cayman (39,610,348) (34,397,077) 6,633,761 Indonesia — — (11,705) Hong Kong S.A.R. 219,935 (4,507,360) (3,820,485) PRC, excluding Hong Kong S.A.R. (145,272,458) (310,123,039) 195,497,541 Total (184,662,871) (349,027,476) 198,299,112 The Group had current income tax expense of RMB7,460,535 and deferred income tax expense of RMB753,806 for a PRC subsidiary of a VIE for the year ended December 31, 2019 and no current and deferred income tax expense for the years ended December 31, 2017 and 2018. Withholding tax on undistributed dividends The CIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign investment enterprise ("FIE") to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company is incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). The Group did not record any dividend withholding tax, as the Group’s PRC entities, have no retained earnings in any of the periods presented. Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2017, 2018 and 2019 are as follows: For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Computed expected income tax expense (46,165,718) (87,256,869) 49,574,778 Non-PRC entities not subject to income tax 9,847,603 9,726,109 (700,393) Research and development expenses bonus deduction (1,032,177) (7,528,081) (10,181,598) Non-deductible share-based compensation expenses 15,631,775 66,374,951 4,532,885 Other non-deductible expenses 358,759 176,111 32,602 Expiration of loss carry forwards — — 304,194 Change in valuation allowance 21,359,758 18,507,779 (35,348,127) Actual income tax expense — — b) Deferred income tax assets and deferred income tax liabilities As of December 31, 2018 2019 RMB RMB Deferred income tax assets Net operating loss carry forwards 74,657,570 39,342,952 Accrued warranty 12,218,071 14,987,967 Accrued payroll and social insurance 5,099,295 3,873,748 Deferred revenue 3,225,283 6,363,254 Advertising expense 2,955,152 937,639 Allowance for doubtful accounts 57,037 822,134 Write-downs for inventories — 2,622,784 Less: Valuation allowance (98,212,408) (62,864,281) Total deferred income tax assets, net — 6,086,197 Deferred income tax liabilities Short-term investments — 511,975 Property, plant and equipment — 6,840,002 Total deferred income tax liabilities — 7,351,977 Net deferred income tax assets — — Net deferred income tax liabilities — 1,265,780 As of December 31, 2019, the Group had net operating loss carry forwards of RMB157,371,809 attributable to the PRC subsidiaries, the VIE and VIE's subsidiaries. Tax losses of RMB22,993,915, RMB39,644,651, RMB35,015,516, RMB50,628,062 and RMB9,089,665 will expire, if unused, by 2020, 2021, 2022, 2023 and 2024, respectively. A valuation allowance is provided against deferred income tax assets when the Group determines that it is more likely than not that some portion or all of the deferred income tax assets will not be utilized in the foreseeable future. The valuation allowance as of December 31, 2018 and 2019 was primarily provided for the deferred income tax assets of the Group’s PRC subsidiaries, VIE and VIE’s subsidiaries. In making such determination, the Group evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or utilizable. Management considers projected future taxable income and tax planning strategies in making this assessment. Changes in valuation allowance are as follows: For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Balance at the beginning of the year 58,344,871 79,704,629 98,212,408 Additions / (reversals) 21,359,758 18,507,779 (35,348,127) Balance at the end of the year 79,704,629 98,212,408 According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. The income tax returns of the Company’s PRC subsidiaries, consolidated VIE and VIE’s subsidiaries for the years from 2015 to 2019 are open to examination by the PRC tax authorities. |
NET (LOSS)_INCOME PER ORDINARY
NET (LOSS)/INCOME PER ORDINARY SHARE | 12 Months Ended |
Dec. 31, 2019 | |
NET (LOSS)/INCOME PER ORDINARY SHARE | |
NET (LOSS)/INCOME PER ORDINARY SHARE | 20 . NET (LOSS) / INCOME PER ORDINARY SHARE The following table sets forth the basic and diluted net (loss) / income per ordinary share computation and provides a reconciliation of the numerator and denominator for the years presented: For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Numerator: Net (loss) / income attributable to ordinary shareholders (184,662,871) (349,027,476) 190,084,771 Denominator: Weighted average number of ordinary shares outstanding 26,295,181 65,834,876 148,896,691 Weighted average number of ordinary shares equivalents outstanding — — 128,475 Denominator for basic net (loss) / income per ordinary share 26,295,181 65,834,876 149,025,166 Dilutive effect of outstanding share options — — 3,978,477 Dilutive effect of unvested restricted share units — — 244,545 Denominator for diluted net (loss) / income per ordinary share 26,295,181 65,834,876 153,248,188 Net (loss) / income per ordinary share —Basic (7.02) (5.30) 1.28 —Diluted (7.02) (5.30) 1.24 Securities that could potentially dilute basic net (loss) / income per share in the future that were not included in the computation of diluted net (loss) / income per share because to do so would have been antidilutive for the years ended December 31, 2017, 2018 and 2019 are as follow: For the Year Ended December 31, 2017 2018 2019 Share options 4,265,750 5,314,246 4,180,000 Unvested restricted share units — 100,000 — Restricted ordinary shares 32,689,010 — — Series Seed Preferred Shares 30,000,000 — — Series A Preferred Shares 25,278,350 — — Convertible loan 10,119,329 — — |
REVENUE INFORMATION
REVENUE INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE INFORMATION | |
REVENUE INFORMATION | 21. REVENUE INFORMATION Revenues consist of the following: For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Electronic scooter sales 709,595,841 1,370,522,269 1,787,274,271 Accessory and spare parts sales 49,159,080 91,373,179 253,799,782 Service revenues 10,613,080 15,885,856 35,215,048 Revenues 769,368,001 1,477,781,304 2,076,289,101 The following summarizes the Group’s revenue from the following geographic areas (based on the location of customers): For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB PRC 731,423,647 1,318,657,227 1,643,221,531 Europe 36,257,165 148,963,330 274,445,360 Others 1,687,189 10,160,747 158,622,210 Revenues 769,368,001 1,477,781,304 2,076,289,101 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 22. COMMITMENTS AND CONTINGENCIES The Group leases its offices and facilities under non-cancelable operating lease agreements. Rental expenses were RMB4,896,922, RMB7,306,686 and RMB10,931,713 for the years ended December 31, 2017, 2018 and 2019, respectively. As of December 31, 2019, future minimum lease commitments, all under office and facilities non-cancelable operating lease agreements, were as follows: Year ending December 31, RMB 2020 11,817,396 2021 11,278,557 2022 10,131,766 2023 10,131,766 2024 10,131,766 Except for those disclosed above, the Group did not have any significant capital or other commitments, long-term obligations, or guarantees as of December 31, 2019. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 23. RELATED PARTY TRANSACTIONS Mr. Yi’nan Li, the founder and a board member of the Company until June 8, 2018 and Mr. Changlong Sheng, a shareholder of the Company, provide joint liability guaranty for the 2017 BOC Loan, the 2018 BOC Loan and the 2019 BOC Loan (Note 11) borrowed by Jiangsu Xiaoniu. The 2019 BOC Loan was fully repaid by Jiangsu Xiaoniu in December 2019 and the guaranty was released correspondingly. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 24. SUBSEQUENT EVENTS An outbreak of a new type of severe pneumonia caused by novel coronavirus (COVID-19) was found to be spreading from person to person and spread globally around the beginning of 2020. Chinese government has taken certain hygiene measures, which include restrictive measures that adversely affected and slowed down the economic development during the period. Due to the strict quarantine and avoid massing crowd policies, the Group has to reduce work in February and March in 2020 after the Chinese New Year holiday. The Group also suffered from shrinking market demand both from China and overseas markets as a result of the pandemic. Consequently, the COVID-19 outbreak will likely adversely affect the Group's business operations and its financial condition and operation results for the first quarter of 2020, including but not limited to material negative impact to the Group's total revenues and results of operations. However, given the uncertainty around the extent and timing of the potential future spread or mitigation of the COVID-19 and around the imposition or relaxation of protective measures, the Group cannot reasonably estimate the impact to its future results of operations, cash flows, or financial condition for the remainder of fiscal year 2020. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 25. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION For the presentation of the parent company only condensed financial information, the Company records its investment in subsidiaries, consolidated VIE and VIE’s subsidiaries, under the equity method of accounting as prescribed in ASC 323, “Investments-Equity Method and Joint Ventures”. Such investments are presented on the condensed balance sheets as “Investment in subsidiaries, consolidated VIE and VIE's subsidiaries” and the subsidiaries, consolidated VIE and VIE’s subsidiaries’ (losses) / income as “Share of (losses) / income from subsidiaries, consolidated VIE and VIE's subsidiaries” on the condensed statements of results of operations. The parent company only condensed financial information should be read in conjunction with the Company’s consolidated financial statements. As of December 31, 2019, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of Niu Technologies, except for those, which have been separately disclosed in the consolidated financial statements. (a) Condensed Balance Sheets As of December 31, 2018 2019 RMB RMB Assets Current assets Cash 149,901,311 120,548,511 Term deposits 27,452,663 174,404,554 Restricted cash 124,357,114 135,130,713 Prepayments and other current assets 3,707,403 7,705,862 Total current assets 305,418,491 437,789,640 Non-current assets Investment in and amount due from subsidiaries, consolidated VIE and VIE’s subsidiaries 405,843,735 479,225,101 Total assets 711,262,226 917,014,741 Liabilities Current liabilities Amount due to subsidiaries, consolidated VIE and VIE’s subsidiaries 4,262,270 4,262,270 Accrued expenses and other current liabilities 7,593,082 451,354 Total current liabilities and total liabilities 11,855,352 4,713,624 Shareholders’ equity: Class A ordinary shares 83,120 84,494 Class B ordinary shares 12,839 11,977 Additional paid-in capital 1,717,483,548 1,738,102,741 Accumulated other comprehensive loss (25,394,429) (13,895,942) Accumulated deficit (992,778,204) (812,002,153) Total shareholders’ equity 699,406,874 912,301,117 Total liabilities and shareholders’ equity 711,262,226 917,014,741 (b) Condensed Statements of Results of Operations For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Total operating expenses 3,029,256 (1,908,610) (3,810,862) Changes in fair value of a convertible loan (43,006,399) (34,499,858) — Share of (losses) / income from subsidiaries, consolidated VIE and VIE’s subsidiaries (62,527,098) (331,955,300) 174,142,290 Interest income 366,795 2,011,390 10,444,623 (Loss) / income before income taxes (102,137,446) (366,352,378) 180,776,051 Income tax expense — — — Net (loss) / income (102,137,446) (366,352,378) 180,776,051 (c) Condensed Statements of Cash Flows For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Net cash provided by / (used in) operating activities 79,113,690 (351,432,253) 124,118,382 Net cash used in investing activities — (19,902,073) (144,813,597) Net cash provided by / (used in) financing activities — 481,123,035 (2,133,713) Effect of foreign currency exchange rate changes on cash and restricted cash (6,058,261) 7,176,014 4,249,727 Net increase in cash and restricted cash 73,055,429 116,964,723 (18,579,201) Cash and restricted cash at the beginning of the year 84,238,273 157,293,702 274,258,425 Cash and restricted cash at the end of the year 157,293,702 274,258,425 255,679,224 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements of the Group have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE for which the Company or its subsidiary is the primary beneficiary, and the VIE’s subsidiaries. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, exercises effective control over the activities that most impact the economic performance, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All intercompany transactions and balances among the Company, its subsidiaries, the VIE and the VIE’s subsidiaries have been eliminated upon consolidation. |
Use of estimates | (c) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the stand-alone selling price ("SSP") of distinct performance obligations, the allowance for doubtful accounts receivable, write downs for excess and obsolete inventories, depreciable lives of property , plant and equipment, intangible assets and land use right, the realization of deferred income tax assets, future warranty expenses, the fair value of share-based compensation awards and convertible loans, and the fair value of the ordinary shares to determine the existence of beneficial conversion feature of the convertible redeemable preferred shares prior to IPO. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Convenience translation | (d) Convenience translation Translations of balances in the consolidated financial statements from RMB into US$ as of and for the year ended December 31, 2019 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.9618, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 31, 2019. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2019, or at any other rate. The US$ convenience translation is not required under U.S. GAAP. |
Commitments and contingencies | (e) Commitments and contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Cash | (f) Cash Cash consist of cash on hand, cash at bank and term deposits, which have original maturities of three months or less and are readily convertible to known amounts of cash. Cash at bank and term deposits are deposited in financial institutions at below locations: As of December 31, 2018 2019 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 145,529,365 90,078,714 —Denominated in USD 155,583,394 178,359,872 Total cash balances held at mainland PRC financial institutions 301,112,759 268,438,586 Financial institutions in the United States —Denominated in USD 4,038,742 3,523,116 Total cash balances held at the United States financial institutions 4,038,742 3,523,116 Financial institutions in the Hong Kong S.A.R. —Denominated in USD 263,588,286 6,015,191 Total cash balances held at Hong Kong S.A.R. financial institutions 263,588,286 6,015,191 Financial institutions in Indonesia —Denominated in USD — 1,765,448 Total cash balances held at the Indonesia financial institutions — 1,765,448 Total cash balances held at financial institutions 568,739,787 279,742,341 |
Term deposits | (g) Term deposits Term deposits represent deposits placed with bank with original maturities of more than three months but less than one year. The Group's term deposits are denominated in USD and are deposited at a financial institution in the mainland of the PRC. |
Restricted cash | (h) Restricted cash Restricted cash is an amount of cash deposited with banks in conjunction with borrowings from the banks. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the terms of the bank borrowings. Restricted cash is classified as current asset on the Company’s consolidated balance sheets , as all the balance will be released to cash within the next 12 months. The Group’s restricted cash are denominated in RMB and USD and are deposited at financial institutions in the mainland of the PRC. In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-18, Statement of Cash Flows: Restricted Cash ("ASU 2016-18") . ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Company as of January 1, 2019. Adoption of ASU 2016-18 resulted in the Group including changes in cash and restricted cash in its consolidated statements of cash flows. The Group adopted this ASU on January 1, 2019 on a retrospective basis. The adoption of this guidance impacted the presentation and classification of changes in restricted cash in the Group's consolidated statements of cash flows. The impact of adoption on the consolidated statements of cash flows for the years ended December 31, 2017 and 2018 was as follows: For the Year Ended December 31, 2017 2018 RMB RMB Net cash provided by operating activities — 789,751 Net cash provided by financing activities 66,288,600 — Effect of foreign currency exchange rate changes on restricted cash (7,391,400) 8,583,763 Net increase in cash and restricted cash 58,897,200 9,373,514 For the year ended December 31, 2017, the changes in restricted cash amounting to RMB66,288,600 previously reported in financing activities was reclassified to total cash and restricted cash in the consolidated statements of cash flows. For the year ended December 31, 2018, the changes in restricted cash amounting to RMB789,751 previously reported in operating activities was related to interest income on restricted cash and reclassified to total cash and restricted cash in the consolidated statements of cash flows. The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. As of December 31, 2018 2019 RMB RMB Cash 569,059,591 279,945,942 Restricted cash, current 179,262,714 221,656,071 Restricted cash, non-current — — Total cash and restricted cash 748,322,305 501,602,013 |
Short-term investments | (i) Short-term investments The Group’s short-term investments represent the Group’s investments in financial products managed by financial institutions in the PRC which are redeemable at the option of the Group on any working day, which are classified as available-for-sale securities. Short-term investments are reported at fair value, with unrealized holding gains or losses, net of the related tax effect, excluded from earnings and recorded as a separate component of accumulated other comprehensive income / (loss) until realized. Realized gains or losses from the sale of short-term investments are determined on a specific identification basis and are recorded as investment income when earned. |
Inventories | (j) Inventories Inventories, consisting of raw materials, work in progress and products available for sale, are stated at the lower of cost or net realizable value. The cost of inventory is determined using the weighted average cost method. Cost of work-in-process and finished goods comprise direct materials, direct production costs and an allocation of production overheads based on normal operating capacity. The Group takes ownership, risks and rewards of the products purchased. Inventory is written down for damaged and slow-moving goods, which is dependent upon factors such as historical and forecasted consumer demand. When appropriate, write downs to inventory are recorded to write down the cost of inventories to their net realizable value. |
Property, plant and equipment, net | (k) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and any recorded impairment. The estimated useful lives are as follows: Building 50 years Machinery and equipment 3 ~ 10 years Furniture 3 years Leasehold improvements 3 years Office and electronic equipment 2 ~ 5 years Motor vehicles 4 years Depreciation on property, plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Depreciation and amortization of property, plant and equipment attributable to manufacturing activities is capitalized as part of inventories, and recognized as cost of revenues when the inventory is sold. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred, and replacements and betterments are capitalized and amortized over the remaining useful life. |
Intangible assets | (l) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets with finite lives are carried at cost less any accumulated amortization and any accumulated impairment losses. Intangible assets with finite lives are amortized over the useful economic life on straight-line basis and assessed for impairment whenever there is an indication that the intangible assets may be impaired. |
Land use right, net | (m) Land use right, net Land use right is recorded at cost less accumulated amortization and any accumulated impairment losses. Amortization is provided on a straight-line basis over the estimated useful lives, which is 50 years and represents the shorter of the estimated usage years or the terms of the land use right certificate. |
Impairment of long-lived assets | (n) Impairment of long-lived assets Long-lived assets such as property, plant and equipment, intangible assets and land use right with finite lives are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment of long-lived assets was recognized for the years ended December 31, 2017, 2018 and 2019. |
Value added taxes | (o) Value added taxes The Company’s PRC subsidiaries are subject to value added tax ("VAT"). Revenues from sales of products are generally subject to VAT at the rate of 17% prior to May 1, 2018, which was adjusted to 16% after May 1, 2018, then to 13% after April 1, 2019. Revenues from services are generally subject to VAT at the rate of 6%. VAT are subsequently paid to PRC tax authorities after netting input VAT on purchases and VAT export rebates. The excess of output VAT over input VAT and VAT export rebates is reflected in Accrued expenses and other current liabilities, and the excess of input VAT and VAT export rebates over output VAT is reflected in Prepayments and other current assets in the consolidated balance sheets. |
Fair value measurements | (p) Fair value measurements Fair value represents 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Accounting guidance establishes a three-level fair value hierarchy and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash, term deposits, restricted cash, short-term investments, accounts receivable, short term bank borrowings, convertible loan and accounts payable. The Group measures short-term investments and convertible loan at fair value on a recurring basis. Short-term investments include financial products issued by financial institutions, which are valued based on prices per units quoted by issuers. They are categorized in Level 2 of the fair value hierarchy. Convertible loan being recognized in its entirety at fair value were measured at fair value using unobservable inputs. They are categorized in Level 3 of the fair value hierarchy. As of December 31, 2018 and 2019, the carrying values of other financial instruments approximated to their fair values due to the short term maturity of these instruments. The Group’s non-financial assets, such as land use right, intangible assets and property, plant and equipment, would be measured at fair value only if they were determined to be impaired. |
Revenue recognition | (q) Revenue recognition The Group generates substantially all of its revenues from sales of smart electric scooters, accessories and spare parts to the Group’s PRC domestic offline distributors and overseas offline distributors or directly to individual customers online. The Group also generates its revenues from its subscription-based mobile application services, as well as insurance service as an agent. Periods prior to January 1, 2019 Prior to January 1, 2019, the Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and the services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured. When the Group sells its smart electric scooters to its customers, it also provides mobile application services for free for one to two years (the “free service period”). Customers are able to locate their smart electric scooters, as well as obtain the operating status (e.g. battery status), and claim online repair and maintenance requests of their smart electric scooters, upon their registration of their smart electric scooters on the Group’s mobile application. Customers may subscribe to such service after the free service period if they want to continue using aforementioned functions. The Group allocates revenue to all deliverables based on their relative selling prices. The Group uses a hierarchy to determine the selling price to be used for allocating revenue to the deliverables: (i) vendor-specific objective evidence ("VSOE") of fair value, (ii) third-party evidence ("TPE"), and (iii) best estimate of the selling price ("BESP"). The Group uses the SSP as the fair value of VSOE for advanced mobile application services. The allocated revenue to mobile application services is deferred and recognized over the free service period. The deferred revenue that will be recognized in the next twelve months is classified as current portion, and the remaining balance of deferred revenue is classified as non-current portion. Revenue from sales of products is recognized when the products is accepted by the domestic offline distributors, overseas offline distributors or individual customers. When the Group sells its products to its domestic offline distributors for domestic sales in PRC, acceptance of the products by the domestic offline distributors is evidenced by goods receipt notes signed by the domestic offline distributors, which is generally at the Group’s warehouse. The Group has no remaining obligations upon the domestic offline distributors acceptance of the products. The risks and rewards of ownership of the products is transferred to the domestic offline distributors upon the signing of the goods receipt notes and the domestic offline distributors have no rights to return the products. When the Group sells its products to distributors for oversea sales, risks and rewards of ownership are transferred to the distributors upon the products are delivered to and accepted by distributors at the named port of shipment. When the Group sells its products to individual customers through its own online store and third-party e-commerce platform, the Group is responsible for the delivery to individual customers. Acceptance of the products is evidenced by goods receipt notes signed by individual customers, which represents the risks and rewards of ownership are transferred to individual customers. The Group offers 7-day return-and-refund policy to individual customers who purchase products online. Revenue is recognized net of sales volume rebate, return allowances and VAT. The Group provides sales volume rebate to qualified distributors based on the volume sold by such distributors in a certain period. Sales volume rebates are accrued, when the products are sold to distributors. Return allowances, which reduce net revenues, are estimated based on historical experiences. The Group also sells insurance plan for electric scooters (“NIU Cover”) to individual customers at their option. The insurance is provided by third party insurance companies. The Group earns the service fee on net basis. The Group recognizes revenue when the insurance agreement is signed, since the Group bears no further obligation upon the agreements are entered into between individual customers and insurance providers. For some sales, the Group collects cash before delivery. Cash collected before product delivery is recognized as advances from customers. Period commencing January 1, 2019 The Group adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC 606") on January 1, 2019. The Group applied ASC 606 using the modified retrospective method for contracts which were not completed at the date of initial adoption. Results for reporting periods beginning after January 1, 2019 are presented under the new revenue recognition, while prior periods amounts are not adjusted and continue to be reported in accordance with ASC 605, Revenue Recognition . Since the adoption of ASC 606 starting from January 1, 2019, the Group recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which the Group expects to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value added taxes). For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Group does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. The adoption of new revenue standard did not impact accumulated deficit as of January 1, 2019. The Group has updated significant accounting policies and relevant disclosures hereinafter. To achieve that core principle, the Group applies the five steps defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. A performance obligation is considered distinct from other obligations in a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and (b) is separately identified in the contract. The Group allocates the transaction price to each performance obligation based on the relative SSP of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Products The Group identified one performance obligation which is to sell products, such as smart electric scooters, accessories and spare parts, to the Group’s PRC domestic offline distributors and overseas offline distributors or directly to individual customers online. For all sales of products, the Group requires a signed contract or purchase order, which specifies pricing, quantity and product specifications. Revenue of product sales is recognized on a gross basis upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers. The transfer of control of the products is satisfied at a point in time, which occurs when the products are accepted by the domestic offline distributors, overseas offline distributors or individual customers. When the Group sells its products to its domestic offline distributors for domestic sales in PRC, acceptance of the products by the domestic offline distributors is evidenced by goods receipt notes signed by the domestic offline distributors, which is generally at the Group’s warehouse. When the Group sells its products to distributors for oversea sales, acceptance of the products by overseas offline distributors is evidenced upon the products are delivered to and accepted by distributors at the named port of shipment. When the Group sells its products to individual customers through its own online store and third-party e-commerce platform, the Group is responsible for the delivery to individual customers. Acceptance of the products is evidenced by goods receipt notes signed by individual customers. The Group provides sales volume rebate to qualified distributors based on the volume sold to such distributors in a certain period and grants online individual customers unconditional right to return the products within 7 days after their acceptance. Revenues are measured as the amount of consideration the Group expects to receive in exchange for transferring products to domestic offline distributors, overseas offline distributors or individual customers. Consideration is recorded net of sales volume rebate, sales returns and VAT. Sales returns is estimated based on historical experiences, which were insignificant for the years ended December 31, 2017, 2018 and 2019. The Group utilizes delivery service providers to deliver products to overseas offline distributors and individual customers ("shipping activities"), but the delivery service is not considered as a separate obligation as the shipping activities are performed before the overseas offline distributors and individual customers obtain control of the products. Therefore, shipping activities are not considered a separate promised service to them but rather are activities to fulfill the Group's promise to transfer the products. Outbound shipping charges to overseas offline distributors and individual customers are included as a part of the revenues, and outbound shipping-related costs are recorded as cost of revenues. Shipping costs incurred for sales of products and recognized as cost of revenues were RMB8,917,910, RMB16,752,785 and RMB31,912,258 for the years ended December 31, 2017, 2018 and 2019, respectively. For some sales, the Group collects cash before delivery. Cash collected before product delivery is recognized as advances from customers. Service When the Group sells its smart electric scooters to its customers, it also provides mobile application services for free for one to two years (the "free service period"). Customers are able to locate their smart electric scooters, as well as obtain the operating status (e.g. battery status), and claim online repair and maintenance requests of their smart electric scooters, upon their registration of their smart electric scooters on the Group's mobile application. Customers may subscribe to such service after the free service period if they want to continue using aforementioned functions. Such revenue arrangements are divided into separate distinct performance obligations, including electric scooters and mobile application services. SSP for electric scooters is not directly observable, as the Group does not sell the electric scooters without mobile application service for certain free service period. The Group determines the SSP for electric scooters using the residual approach and subtracting the observable SSP of the mobile application services from the total transaction price. The allocated revenue to mobile application services of free service period and subscribed mobile application service revenue is deferred and recognized on a straight-line basis over the service period, as the Group determines that the customer simultaneously receives and consumes benefits provided by the Group as the Group performs during the free service period or the subscription period. The Group entered into an agreement with a customer in 2019 and provides design, testing and producing prototype of a product for the customer. The Group identifies each deliverable specified in the agreement as a distinct performance obligation at contract inception. The Group determines the SSP for each performance obligation in the agreement using the expected cost plus a margin approach and allocates the transaction price to each distinct performance obligation based on the relative estimated SSP of each performance obligation. The Group recognizes revenue for each performance obligation when the specified deliverable is accepted by the customer. The deferred revenue that will be recognized in the next twelve months is classified as current portion, and the remaining balance of deferred revenue is classified as non-current portion. The Group also sells insurance plan for electric scooters ("NIU Cover") to individual customers at their option. The insurance is provided by third party insurance companies. The Group determines that it acts as an agent for the NIU Cover service because it does not obtain control of the service before the service is transferred to the customers. The Group recognizes revenue on net basis when the insurance agreement is entered into between individual customers and insurance providers. Remaining performance obligations The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as of the end of the reporting period and an explanation as to when the Group expects to recognize these amounts in revenue. Additionally, as a practical expedient, the Group does not include contracts that have an original duration of one year or less. As of December 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was RMB47,461,086. Given the profile of contract terms, RMB45,290,053 of the remaining performance obligation is expected to be recognized as revenue within the next 12 months and RMB2,171,033 is expected to be recognized as revenue between next 12 to 24 months. |
Contract Balances | (r) Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Management considers the following factors when determining the collectability of specific accounts: historical experience, credit worthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. An allowance for doubtful accounts is made and recorded into general and administrative expenses based on aging of accounts receivable and on any specifically identified accounts receivable that may become uncollectible. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Group estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Group does not have any off-balance sheet credit exposure related to its customers. A contract liability is recognized when the Group has an obligation to transfer products or services to a customer for which the Group has received consideration from the customer, or for which an amount of consideration is due from the customer. Contract liabilities are included in advances from customers and deferred revenue on the consolidated balance sheets. In accordance with the new revenue standard requirements, the Company reclassified VAT payable from advances from customers to accrued expenses and other current liabilities. The disclosure of the impact of adoption on the consolidated balance sheets was as follows: Amounts without As of adoption of December 31, 2019 Adjustments ASC 606 Advances from customers 7,478,309 497,004 7,975,313 Accrued expenses and other current liabilities 175,533,397 (497,004) 175,036,393 Changes in the Group's contract liabilities (advances from customers and deferred revenue) are presented in the following table for the year ended December 31, 2019: For the Year Ended December 31, 2019 Contract liabilities as of January 1, 2019 prior to adoption of ASC 606 33,406,992 Reclassification of VAT payable to Accrued expenses and other liabilities as of January 1, 2019 as a result of adoption of ASC 606 (2,348,375) Cash received in advance, excluding VAT 1,967,468,291 Revenue recognized from opening balance of contract liabilities (30,823,816) Revenue recognized from contract liabilities arising during current year (1,926,948,050) Contract liabilities as of December 31, 2019 40,755,042 |
Warranties | (s) Warranties The Group provides for the estimated costs of warranties at the time when revenue is recognized. The specific terms and conditions of those warranties vary among different parts of electric scooters. Factors that affect the Group’s warranty obligation include product defect rates and costs of repair or replacement. These factors are estimates that may change based on new information that becomes available each period. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued expenses and other current liabilities while the remaining balance is included within other non-current liabilities on the consolidated balance sheets. |
Cost of Revenues | (t) Cost of Revenues Cost of revenues mainly consists of the cost of products sold, write-downs of inventories, logistics costs and warranty costs. |
Selling and Marketing Expenses | (u) Selling and Marketing Expenses Selling and marketing expenses mainly consist of advertising costs, promotion expenses and payroll and related expenses for personnel engaged in selling and marketing activities. Advertising expenses, which consist primarily of online and offline advertisements, are expensed when the services are received. The advertising expenses were RMB28,345,034, RMB76,791,991 and RMB79,533,394 for the years ended December 31, 2017, 2018 and 2019, respectively. |
General and Administrative Expenses | (v) General and Administrative Expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, professional fees, foreign currency exchange gain/(losses) and other general corporate expenses, as well as expenses associated with the use by these functions of facilities and equipment, such as rental and depreciation expenses. |
Research and Development Expenses | (w) Research and Development Expenses Research and development expenses mainly consist of payroll and related costs for employees involved in researching and developing new products and technologies, and outsourced design expenses as well as expenses associated with the use by these functions of facilities and equipment, such as rental and depreciation expenses. Research and development expenses are expensed as incurred. |
Government Grants | (x) Government Grants Government grant is recognized when there is reasonable assurance that the Group will comply with the conditions attach to it and the grant will be received. Government grant for the purpose of giving immediate financial support to the Group with no future related costs or obligation is recognized in the Group’s consolidated statements of comprehensive (loss) / income when the grant becomes receivable. |
Share-based Compensation | (y) Share-based Compensation The Company periodically grants share-based awards, including but not limited to, restricted ordinary shares, restricted share units and share options to eligible employees and directors. Share-based awards granted to employees and directors are measured at the grant date fair value of the awards, and are recognized as compensation expense using the straight-line method over the requisite service period, which is generally the vesting period. For the year ended December 31, 2017, the Company estimated forfeitures at the time of grant and revised in the subsequent periods if actual forfeitures differ from those estimates. Effective from January 1, 2018, forfeitures are accounted when they occur. A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For awards not being fully vested, the Group recognizes the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original awards over the remaining requisite service period after modification. Share-based compensation in relation to the restricted ordinary shares and restricted share units is measured based on the fair value of the Company's ordinary shares at the grant date of the award. Prior to the IPO, the fair value was estimated using the income approach and equity allocation method. Estimation of the fair value of the Company's ordinary shares involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, including the expected share price volatility (approximated by the volatility of comparable companies), discount rate, risk-free interest rate and subjective judgments regarding the Company's projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. After the IPO, the fair value is the closing prices of the Company’s stock traded in the open market as of the grant date. Share-based compensation in relation to the share options is estimated using the Binominal Option Pricing Model. The determination of the fair value of share options is affected by the share price of the Company's ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple and expected dividend yield. The fair value of these awards was determined with the assistance from a valuation report prepared by an independent valuation firm using management's estimates and assumptions. |
Employee Benefits | (z) Employee Benefits The Company’s subsidiaries and the VIE and VIE’s subsidiaries in PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in China to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included as cost of products and expenses in the accompanying consolidated statements of comprehensive (loss) / income amounted to RMB13,705,669, RMB15,544,106 and RMB20,729,717 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Income Taxes | (aa) Income Taxes Current income taxes are provided on the basis of net income / (loss) for financial reporting purposes, and adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income tax assets and liabilities are recognized for the tax effects of temporary differences and are determined by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse to the temporary differences between the financial statements’ carrying amounts and the tax bases of assets and liabilities. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset deferred tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle deferred tax liabilities and assets on a net basis or their deferred tax assets and liabilities will be realized simultaneously. A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred income tax assets will not be realized. The effect on deferred income taxes arising from a change in tax rates is recognized in the consolidated statements of comprehensive (loss) / income in the period of change. The Group applies a "more likely than not" recognition threshold in the evaluation of uncertain tax positions. The Group recognizes the benefit of a tax position in its consolidated financial statements if the tax position is "more likely than not" to prevail based on the facts and technical merits of the position. Tax positions that meet the "more likely than not" recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits, and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. Adjustments, if required, are recorded in the Group’s consolidated financial statements in the period in which the change that necessities the adjustments occur. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in certain circumstances, a tax appeal or litigation process. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expenses and general and administrative expenses, respectively. As of December 31, 2018 and 2019, the Group did not have any significant unrecognized uncertain tax positions. |
Operating leases | (bb) Operating leases The Group leases premises for offices and production lines under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis commencing with the beginning of the lease term. |
Foreign currency translation and foreign currency risks | (cc) Foreign currency translation and foreign currency risks The Company’s reporting currency is Renminbi ("RMB"). The functional currency of the Company and its subsidiary incorporated at Hong Kong S.A.R. are the United States dollars ("US$").The functional currency of the Company's subsidiary incorporated in Indonesia is Indonesia Rupiah. The functional currency of the Company’s PRC subsidiaries, VIE and VIE’s subsidiaries is RMB. Transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in a foreign currency are remeasured into the functional currency using the applicable exchange rate at the balance sheet date. The resulted exchange differences are recorded as foreign currency exchange gain or losses in the consolidated statements of comprehensive (loss) / income. The financial statements of the Company, its subsidiaries incorporated at Hong Kong S.A.R and Indonesia. are translated from the functional currency into RMB. Assets and liabilities are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings / (deficits) generated in the current period are translated into RMB using the appropriate historical rates. Revenues, expenses, gains and losses are translated into RMB using the average exchange rates for the relevant period. The resulted foreign currency translation adjustments are recorded as a component of other comprehensive (loss) / income in the consolidated statements of comprehensive (loss) / income, and the accumulated foreign currency translation adjustments are recorded as a component of accumulated other comprehensive loss in the consolidated statements of changes in shareholders’ (deficit) / equity. The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the PRC government, controls the conversion of RMB to foreign currencies. The value of the RMB is subject to changes of central government policies and international economic and political developments affecting supply and demand in the China foreign exchange trading system market. |
Concentration and risk | (dd) Concentration and risk Concentration of customers and suppliers No customers individually represent greater than 10% of total revenues of the Group for the years ended December 31, 2017, 2018 and 2019. Suppliers from whom individually represent greater than 10% of total purchases of the Group for the years ended December 31, 2017, 2018 and 2019, are as follows: For the Year ended December 31, 2017 2018 2019 RMB % RMB % RMB % Supplier F * * 193,555,999 15 % 225,527,597 15 % Supplier A 187,065,077 21 % 150,385,652 12 % 173,723,118 11 % Supplier B 152,966,930 18 % * * * * Customers accounting for 10% or more of accounts receivable, net are as follows: As of December 31, 2018 2019 RMB % RMB % Customer Y 45,980,177 84 % * * Customer R * * 46,263,295 40 % Customers accounting for 10% or more of advances from customers are as follows: As of December 31, 2018 2019 RMB % RMB % Customer U * * 1,090,262 15 % Customer W * * 767,993 10 % Suppliers accounting for 10% or more of accounts payable are as follows: As of December 31, 2018 2019 RMB % RMB % Supplier E 26,483,893 11 % * * Supplier F 25,702,037 10 % 26,134,706 10 % * The amount was less than 10% of total balance. Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, term deposits, restricted cash, short-term investments and accounts receivable, net. The Group's investment policy requires cash, term deposits, restricted cash and short-term investments to be placed with high-quality financial institutions and to limit the amount of credit risk from any one issuer. The Group regularly evaluates the credit standing of the counterparties or financial institutions. The Group conducts credit evaluations on its customers prior to delivery of goods or services. The assessment of customer creditworthiness is primarily based on historical collection records, research of publicly available information and customer on-site visits by senior management. Based on this analysis, the Group determines what credit terms, if any, to offer to each customer individually. If the assessment indicates a likelihood of collection risk, the Company will not deliver the services or sell the products to the customer or require the customer to pay cash, post letters of credit to secure payment or to make significant down payments. Interest rate risk The Group’s short-term bank borrowing bears interests at fixed rates. If the Group were to renew these loans, the Group might be subject to interest rate risk. |
Earnings / (Loss) per Share | (ee) Earnings / (Loss) per Share Basic earnings/(loss) per share is computed by dividing net income / (loss) attributable to holders of ordinary shares, considering the accretions to redemption value of the preferred shares (if any), by the weighted average number of ordinary shares or ordinary share equivalents outstanding during the year using the two-class method. Vested share options, which are exercisable for nominal consideration, and vested restricted share units are included in the calculation of the weighted-average number of shares of ordinary shares as ordinary share equivalents. Under the two-class method, any net income is allocated between ordinary shares and other participating securities based on their participating rights. A net loss is not allocated to participating securities when the participating securities does not have contractual obligation to share losses. The Company's preferred shares and restricted ordinary shares are participating securities. The preferred shares are participating securities as they participate in undistributed earnings on an as-if-converted basis and the restricted ordinary shares are participating securities as the holders of the restricted ordinary shares have a non-forfeitable right to receive dividends with all ordinary shares. Neither the preferred shares nor the restricted ordinary shares have a contractual obligation to fund or otherwise absorb the Group's losses. Accordingly, any undistributed net income is allocated on a pro rata basis to ordinary shares, preferred shares and restricted ordinary shares; whereas any undistributed net loss is allocated to ordinary shares only. Restricted ordinary shares were excluded from the weighted average number of ordinary shares outstanding because the restricted ordinary shareholders must return the restricted ordinary shares to the Company, if the specified condition are not met. Diluted earnings / (loss) per share is calculated by dividing net income / (loss) attributable to ordinary shareholders, as adjusted for the accretion and allocation of net income related to the preferred shares, if any, by the weighted average number of ordinary shares used in calculating basic net earnings / (loss) per ordinary share and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the conversion of the preferred shares and convertible loan using the if-converted method, restricted ordinary shares and ordinary shares issuable upon the exercise of outstanding share option with the exception of vested share options with nominal exercise consideration and unvested restricted share units (using the treasury stock method). Ordinary equivalent shares are calculated based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive. |
Segment Reporting | (ff) Segment Reporting The Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Company’s Chief Executive Officer and management personnel do not segregate the Group’s business by product. All products and services are viewed as in one and the only operating segment. |
Statutory Reserves | (gg) Statutory Reserves In accordance with the PRC Company Laws, the Group’s PRC subsidiaries, VIE and VIE’s subsidiaries must make appropriations from their after-tax profits as determined under the Generally Accepted Accounting Principles in the PRC ("PRC GAAP") to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the PRC companies. Appropriation to the discretionary surplus fund is made at the discretion of the PRC companies. The statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective companies. These reserves are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except for liquidation. For the years ended December 31, 2017, 2018 and 2019, the Group's PRC subsidiaries made appropriations to the statutory reserves of nil, nil and RMB3,316,650 respectively. |
Recent Accounting Pronouncements | (hh) Recent Accounting Pronouncements In February 2016, the FASB established Topic 842, Leases , by issuing ASU No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 , ASU No. 2018-10, Codification Improvements to Topic 842, Leases , ASU No. 2018-11, Targeted Improvements, ASU No. 2019-01 , Leases (Topic 842): Codification Improvements, and ASU No. 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), Effective Dates . The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for public business entities for annual periods beginning after December 15, 2018, and interim periods therein. For all other entities, the standard is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Group will adopt the new standard on January 1, 2021 and plan to use the effective date as the date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2021. The new standard provides a number of optional practical expedients in transition. The Group plans to elect the 'package of practical expedients', which permits the Group not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. For public entities, this standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For all other entities, this standard is effective for annual periods beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. Management is currently evaluating the impact of this amendment and does not expect the impact to be material. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 modifies certain disclosure requirements on fair value measurements, including (i) clarifying narrative disclosure regarding measurement uncertainty from the use of unobservable inputs, if those inputs reasonably could have been different as of the reporting date, (ii) adding certain quantitative disclosures, including (a) changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and (iii) removing certain fair value measurement disclosure requirements, including (a) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (b) the policy for timing of transfers between levels of the fair value hierarchy and (c) the valuation processes for Level 3 fair value measurements. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. The Company is currently evaluating the effect of the disclosure requirements of ASU 2018-13 will have on its consolidated financial statements and does not expect the impact to be material. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) , which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life, instead of when incurred. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments–Credit Losses , which amends Subtopic 326-20 (created by ASU No.2016-13) to explicitly state that operating lease receivables are not in the scope of Subtopic 326-20. Additionally, in April 2019, the FASB issued ASU No.2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , Topic 815, Derivatives and Hedging , and Topic 825, Financial Instruments , in May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief , and in November 2019, the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , and ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , to provide further clarifications on certain aspects of ASU No. 2016-13 and to extend the nonpublic entity effective date of ASU No. 2016-13. The changes (as amended) are effective for the Group for annual and interim periods in fiscal years beginning after December 15, 2022. While the Group expects its allowance for credit losses to increase upon adoption of ASU No. 2016-13, the Group does not expect the adoption of ASU No. 2016-13 to have a material effect on its consolidated financial statements. |
DESCRIPTION OF ORGANIZATION A_2
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Schedule of Group's VIE information | As of December 31, 2018 2019 RMB RMB Cash 90,723,253 93,548,349 Short-term investments 120,241,425 310,439,321 Accounts receivable, net 54,424,845 115,228,700 Inventories 142,155,411 178,476,473 Prepayments and other current assets 22,711,514 18,613,814 Amounts due from intercompany 4,262,270 4,303,778 Total current assets 434,518,718 720,610,435 Property, plant and equipment, net 40,580,352 148,937,701 Intangible assets, net 580,667 1,962,530 Land use right, net — 34,355,936 Other non-current assets 16,805,475 5,961,241 Total assets 492,485,212 911,827,843 Short-term bank borrowings 179,978,003 217,394,132 Accounts payable 249,665,890 258,988,264 Amounts due to intercompany 211,250,230 306,137,760 Advances from customers 20,505,861 7,478,309 Deferred revenue—current 12,666,330 31,105,700 Accrued expenses and other current liabilities 119,242,975 164,442,316 Income taxes payable — 3,013,805 Total current liabilities 793,309,289 988,560,286 Deferred revenue—non current 234,801 2,171,033 Deferred income tax liability — 1,265,780 Other non-current liabilities 17,609,842 22,358,968 Total liabilities 811,153,932 1,014,356,067 For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Revenues 769,368,001 1,477,593,628 2,115,501,618 Net (loss) / income (145,154,084) (294,156,973) 196,473,033 Net cash (used in) / provided by operating activities (2,423,156) 14,379,166 284,907,333 Net cash used in investing activities (55,928,949) (74,333,070) (319,696,832) Net cash provided by financing activities 68,703,310 78,199,492 37,416,129 Effect of foreign currency exchange rate changes on cash (813,270) 684,791 198,466 Net increase in cash 9,537,935 18,930,379 2,825,096 Cash at the beginning of the year 62,254,939 71,792,874 90,723,253 Cash at the end of the year 71,792,874 90,723,253 93,548,349 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Summary of impact of adoption on the consolidated statements | Amounts without As of adoption of December 31, 2019 Adjustments ASC 606 Advances from customers 7,478,309 497,004 7,975,313 Accrued expenses and other current liabilities 175,533,397 (497,004) 175,036,393 |
Summary of reconciliation of cash and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows | As of December 31, 2018 2019 RMB RMB Cash 569,059,591 279,945,942 Restricted cash, current 179,262,714 221,656,071 Restricted cash, non-current — — Total cash and restricted cash 748,322,305 501,602,013 |
Schedule of cash at bank and term deposits are deposited in financial institutions | As of December 31, 2018 2019 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 145,529,365 90,078,714 —Denominated in USD 155,583,394 178,359,872 Total cash balances held at mainland PRC financial institutions 301,112,759 268,438,586 Financial institutions in the United States —Denominated in USD 4,038,742 3,523,116 Total cash balances held at the United States financial institutions 4,038,742 3,523,116 Financial institutions in the Hong Kong S.A.R. —Denominated in USD 263,588,286 6,015,191 Total cash balances held at Hong Kong S.A.R. financial institutions 263,588,286 6,015,191 Financial institutions in Indonesia —Denominated in USD — 1,765,448 Total cash balances held at the Indonesia financial institutions — 1,765,448 Total cash balances held at financial institutions 568,739,787 279,742,341 |
Schedule of estimated useful lives of property and equipment | Building 50 years Machinery and equipment 3 ~ 10 years Furniture 3 years Leasehold improvements 3 years Office and electronic equipment 2 ~ 5 years Motor vehicles 4 years |
Summary of changes in the contract liabilities (advances from customers and deferred revenue) | For the Year Ended December 31, 2019 Contract liabilities as of January 1, 2019 prior to adoption of ASC 606 33,406,992 Reclassification of VAT payable to Accrued expenses and other liabilities as of January 1, 2019 as a result of adoption of ASC 606 (2,348,375) Cash received in advance, excluding VAT 1,967,468,291 Revenue recognized from opening balance of contract liabilities (30,823,816) Revenue recognized from contract liabilities arising during current year (1,926,948,050) Contract liabilities as of December 31, 2019 40,755,042 |
Schedule of concentration of customers and suppliers | For the Year ended December 31, 2017 2018 2019 RMB % RMB % RMB % Supplier F * * 193,555,999 15 % 225,527,597 15 % Supplier A 187,065,077 21 % 150,385,652 12 % 173,723,118 11 % Supplier B 152,966,930 18 % * * * * Customers accounting for 10% or more of accounts receivable, net are as follows: As of December 31, 2018 2019 RMB % RMB % Customer Y 45,980,177 84 % * * Customer R * * 46,263,295 40 % Customers accounting for 10% or more of advances from customers are as follows: As of December 31, 2018 2019 RMB % RMB % Customer U * * 1,090,262 15 % Customer W * * 767,993 10 % Suppliers accounting for 10% or more of accounts payable are as follows: As of December 31, 2018 2019 RMB % RMB % Supplier E 26,483,893 11 % * * Supplier F 25,702,037 10 % 26,134,706 10 % * The amount was less than 10% of total balance. |
2016-18 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Summary of impact of adoption on the consolidated statements | For the Year Ended December 31, 2017 2018 RMB RMB Net cash provided by operating activities — 789,751 Net cash provided by financing activities 66,288,600 — Effect of foreign currency exchange rate changes on restricted cash (7,391,400) 8,583,763 Net increase in cash and restricted cash 58,897,200 9,373,514 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM INVESTMENTS | |
Schedule of short-term investments | As of December 31, 2018 2019 RMB RMB Aggregate cost basis 120,000,000 308,150,000 Gross unrealized holding gain 241,425 2,289,321 Aggregate fair value 120,241,425 310,439,321 |
ACCOUNTS RECEIVABLES, NET (Tabl
ACCOUNTS RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS RECEIVABLES, NET | |
Schedule of accounts receivables, net | As of December 31, 2018 2019 RMB RMB Accounts receivable 54,652,991 118,517,235 Allowance for doubtful accounts (228,146) (3,288,535) Accounts receivable, net 54,424,845 115,228,700 |
Schedule of movement of the allowance for doubtful accounts | For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Balance at the beginning of the year 47,846 1,956,245 228,146 Additions / (reversals) charged to bad debt expense 1,908,399 (1,215,464) 3,060,389 Write-off of bad debt allowance — (512,635) — Balance at the end of the year 1,956,245 228,146 3,288,535 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
Schedule of inventories | As of December 31, 2018 2019 RMB RMB Raw materials 120,290,456 151,975,367 Works in progress 1,948,838 1,481,938 Finished goods 20,142,911 25,175,994 Inventories 142,382,205 178,633,299 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of prepayments and other current assets | As of December 31, 2018 2019 RMB RMB Advances to suppliers 15,507,866 11,124,716 Deductible input VAT and VAT rebates receivable 7,855,998 8,678,443 Staff advances 447,791 514,328 Interest receivable 659,194 5,369,826 Others* 2,449,105 5,294,818 Prepayments and other current assets 26,919,954 30,982,131 * Others mainly include deposits receivable. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property and equipment | As of December 31, 2018 2019 RMB RMB Machinery and equipment 22,615,657 47,307,840 Furniture 36,630,720 76,258,884 Office and electronic equipment 9,071,471 16,909,504 Leasehold improvement 2,116,266 4,081,766 Motor vehicles 802,251 1,173,634 Building and building improvements — 64,887,245 Property, plant and equipment 71,236,365 210,618,873 Less: Accumulated depreciation (30,251,191) (59,727,529) Property, plant and equipment, net 40,985,174 150,891,344 |
Schedule of depreciation expense on property and equipment allocated to expense items | For the Year ended December 31, 2017 2018 2019 RMB RMB RMB Cost of revenues 4,217,126 4,638,662 6,109,583 General and administrative expenses 1,873,711 2,261,620 3,403,502 Selling and marketing expenses 2,646,204 9,438,501 19,025,624 Research and development expenses 312,728 470,204 962,414 Total depreciation expense 9,049,769 16,808,987 29,501,123 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets | As of December 31, 2018 Gross Net Amortization carrying Accumulated carrying RMB period amount amortization amount Trademarks 5 years 8,564,505 (1,427,418) 7,137,087 Domain name 5 years 3,484,000 (2,903,333) 580,667 Total 12,048,505 (4,330,751) 7,717,754 As of December 31, 2019 Gross Net Amortization carrying Accumulated carrying RMB period amount amortization amount Trademarks 5-10 years 8,911,271 (3,193,738) 5,717,533 Domain name 5-10 years 3,821,474 (3,517,748) 303,726 License 10 years 1,943,396 (184,906) 1,758,490 Total 14,676,141 (6,896,392) 7,779,749 |
Summary of amortization expenses on intangible assets | Amortization expense on intangible assets was allocated to the following expense items: For the Year ended December 31, 2017 2018 2019 RMB RMB RMB Cost of revenues — — 184,906 General and administrative expenses 696,800 2,072,389 2,336,803 Total amortization expense 696,800 2,072,389 2,521,709 |
LAND USE RIGHT, NET (Tables)
LAND USE RIGHT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LAND USE RIGHT, NET | |
Summary of land use right, net | As of December 31, 2018 2019 RMB RMB Gross carrying amount — 34,761,487 Less: Accumulated amortization — (405,551) Land use right, net — 34,355,936 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | As of December 31, 2018 2019 RMB RMB Prepayments for land use right 10,000,000 — Others* 6,805,474 6,522,561 Other non-current assets 16,805,474 6,522,561 * Others mainly include deposits and prepayments for equipment and intangible assets. |
SHORT-TERM BANK BORROWINGS AN_2
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | |
Schedule of short-term bank borrowings | As of December 31, 2018 2019 RMB RMB East West Bank loan 99,978,003 48,910,799 Bank of China loan 20,000,000 20,000,000 SPD Silicon Valley Bank loan 60,000,000 120,000,000 Bank of Ningbo loan — 28,483,333 Short-term bank borrowings 179,978,003 217,394,132 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2018 2019 RMB RMB Accrued payroll and social insurance 32,008,825 30,780,693 Warranty—current 31,262,442 41,809,564 Sales rebate 34,029,433 40,344,717 Construction payable — 18,765,855 Deposits 16,360,762 16,293,035 Deferred ADR income 4,250,126 — Other taxes payable 3,656,732 10,273,637 IPO cost payable 3,130,639 — Interest payable 318,774 2,010,366 Others* 9,166,293 15,255,530 Accrued expenses and other current liabilities 134,184,026 175,533,397 * Others mainly include employee options payable and accrued marketing expenses. |
Schedule of movement of provision for warranty | For the Year ended December 31, 2017 2018 2019 Accrued warranty—beginning of year 17,649,411 30,648,678 48,872,284 Accrual for warranties issued during the year 27,395,169 29,346,974 40,271,444 Warranty claims paid (14,395,902) (7,923,760) (22,132,194) Pre-existing warranty expired — (3,199,608) (7,059,668) Accrued warranty—end of year 30,648,678 48,872,284 59,951,866 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT LIABILITIES | |
Summary of other non-current liabilities | As of December 31, 2018 2019 RMB RMB Warranty—non-current 17,609,842 18,142,302 Deposits for construction of building —non-current — 4,216,666 Other non-current liabilities 17,609,842 22,358,968 |
REDEEMABLE CONVERTIBLE PREFER_2
REDEEMABLE CONVERTIBLE PREFERRED SHARES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |
Schedule of redeemable convertible preferred shares activities | Series A-2 Series A-3 Series B Preferred Preferred Preferred Series A-1 Preferred Shares Shares Shares Shares Carrying Subscription Carrying Carrying Carrying RMB amount receivable amount amount amount Total Balance as of January 1, 2017 138,740,003 — 41,621,992 72,144,418 — 252,506,413 Foreign currency translation adjustment (8,056,000) — (2,416,800) (4,189,098) — (14,661,898) Balance as of December 31, 2017 130,684,003 — 39,205,192 67,955,320 — 237,844,515 Issuance of preferred shares — — — 181,112,874 161,392,196 342,505,070 Foreign currency translation adjustment 8,090,000 — 2,427,000 21,651,035 15,544,654 47,712,689 Conversion to Ordinary Shares (138,774,003) — (41,632,192) (270,719,229) (176,936,850) (628,062,274) Balance as of December 31, 2018 and 2019 — — — — — — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restricted ordinary shares | |
SHARE-BASED COMPENSATION | |
Schedule of share-based compensation expenses recognized | For the year ended December 31, 2017 2018 RMB RMB Research and development expenses 13,045,853 18,371,203 General and administrative expenses 46,185,090 207,871,076 Total restricted ordinary shares compensation expense 59,230,943 226,242,279 |
Unvested restricted share units | |
SHARE-BASED COMPENSATION | |
Summary of the restricted share units activities | For the year ended December 31, 2018 2019 RMB RMB Cost of revenues — 36,332 Selling and marketing expenses — 2,185,586 Research and development expenses — 1,146,846 General and administrative expenses 375,123 4,233,758 Total share option compensation expense 375,123 7,602,522 |
Amended 2016 Plan | |
SHARE-BASED COMPENSATION | |
Summary of the share options activities | Weighted Weighted remaining Number of average exercise contractual Aggregate share price years intrinsic value US$ US$ Outstanding at January 1, 2019 5,314,246 0.17 Granted 4,180,000 3.43 Exercised (742,840) 0.19 Forfeited (69,050) 0.20 Outstanding at December 31, 2019 8,682,356 1.74 8.18 21,950,316 Exercisable as of December 31, 2019 2,387,959 0.19 6.44 9,738,313 |
Schedule of stock option valuation allowance using the binomial option pricing model | Grant Date: 2017 2018 2019 Risk-free rate of return (per annum) 2.25% - 2.48% 2.78%-3.13% 1.90% Volatility 51.7% - 54.4% 49.9%-50.9% 47.9% Expected dividend yield 0% 0% 0% Exercise multiple 2.2 2.2 2.2-2.8 Fair value of underlying ordinary share US$0.44 - US$1.22 US$2.05 - US$4.10 US$3.425 Expected term (in years) 10 10 10 |
Schedule of share-based compensation expenses recognized | For the year ended December 31, 2017 2018 2019 RMB RMB RMB Cost of revenues 253,545 246,947 255,679 Selling and marketing expenses 1,611,160 2,124,728 2,471,725 Research and development expenses 832,782 955,538 3,060,263 General and administrative expenses 598,668 2,392,740 6,232,590 Total share option compensation expense 3,296,155 5,719,953 12,020,257 |
Amended 2016 Plan | Restricted ordinary shares | |
SHARE-BASED COMPENSATION | |
Summary of the restricted share units activities | Weighted average grant Number of date fair shares value US$ Unvested as of January 1, 2019 100,000 4.33 Granted 1,694,600 3.62 Vested (50,000) 4.33 Forfeited — — Unvested as of December 31, 2019 1,744,600 3.64 |
2018 Plan | |
SHARE-BASED COMPENSATION | |
Schedule of share-based compensation expenses recognized | For the year ended December 31, 2017 2018 2019 RMB RMB RMB Cost of revenues 253,545 246,947 292,011 Selling and marketing expenses 1,611,160 2,124,728 4,657,311 Research and development expenses 13,878,635 52,864,313 4,207,109 General and administrative expenses 46,783,758 210,638,939 10,466,348 Total share-based compensation expense 62,527,098 265,874,927 19,622,779 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |
Schedule of fair value hierarchy for assets and liabilities measured at fair value on recurring basis | December 31, 2019 Total RMB Level 1 Level 2 Level 3 Fair Value Assets Short-term investments (Note 3) — 310,439,321 — 310,439,321 December 31, 2018 Total RMB Level 1 Level 2 Level 3 Fair Value Assets Short-term investments (Note 3) — 120,241,425 — 120,241,425 |
Schedule of reconciliation of recurring fair value measurements categorized as Level 3 | For the Year Ended December 31, 2017 2018 Convertible loan - beginning of year 116,728,899 151,557,796 Change in fair value 43,006,399 34,499,858 Conversion to Series A-3 Preferred Shares — (181,112,874) Foreign currency translation adjustment (8,177,502) (4,944,780) Convertible loan - end of year 151,557,796 — |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAX | |
Components of (loss)/income before income taxes | For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Cayman (39,610,348) (34,397,077) 6,633,761 Indonesia — — (11,705) Hong Kong S.A.R. 219,935 (4,507,360) (3,820,485) PRC, excluding Hong Kong S.A.R. (145,272,458) (310,123,039) 195,497,541 Total (184,662,871) (349,027,476) 198,299,112 |
Schedule of reconciliation of statutory income tax rate and effective income tax rate | For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Computed expected income tax expense (46,165,718) (87,256,869) 49,574,778 Non-PRC entities not subject to income tax 9,847,603 9,726,109 (700,393) Research and development expenses bonus deduction (1,032,177) (7,528,081) (10,181,598) Non-deductible share-based compensation expenses 15,631,775 66,374,951 4,532,885 Other non-deductible expenses 358,759 176,111 32,602 Expiration of loss carry forwards — — 304,194 Change in valuation allowance 21,359,758 18,507,779 (35,348,127) Actual income tax expense — — |
Schedule of deferred income tax assets and deferred income tax liabilities | As of December 31, 2018 2019 RMB RMB Deferred income tax assets Net operating loss carry forwards 74,657,570 39,342,952 Accrued warranty 12,218,071 14,987,967 Accrued payroll and social insurance 5,099,295 3,873,748 Deferred revenue 3,225,283 6,363,254 Advertising expense 2,955,152 937,639 Allowance for doubtful accounts 57,037 822,134 Write-downs for inventories — 2,622,784 Less: Valuation allowance (98,212,408) (62,864,281) Total deferred income tax assets, net — 6,086,197 Deferred income tax liabilities Short-term investments — 511,975 Property, plant and equipment — 6,840,002 Total deferred income tax liabilities — 7,351,977 Net deferred income tax assets — — Net deferred income tax liabilities — 1,265,780 |
Schedule of changes in valuation allowance | For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Balance at the beginning of the year 58,344,871 79,704,629 98,212,408 Additions / (reversals) 21,359,758 18,507,779 (35,348,127) Balance at the end of the year 79,704,629 98,212,408 |
NET (LOSS)_INCOME PER ORDINAR_2
NET (LOSS)/INCOME PER ORDINARY SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NET (LOSS)/INCOME PER ORDINARY SHARE | |
Schedule of basic and diluted net loss per share computation | The following table sets forth the basic and diluted net (loss) / income per ordinary share computation and provides a reconciliation of the numerator and denominator for the years presented: For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Numerator: Net (loss) / income attributable to ordinary shareholders (184,662,871) (349,027,476) 190,084,771 Denominator: Weighted average number of ordinary shares outstanding 26,295,181 65,834,876 148,896,691 Weighted average number of ordinary shares equivalents outstanding — — 128,475 Denominator for basic net (loss) / income per ordinary share 26,295,181 65,834,876 149,025,166 Dilutive effect of outstanding share options — — 3,978,477 Dilutive effect of unvested restricted share units — — 244,545 Denominator for diluted net (loss) / income per ordinary share 26,295,181 65,834,876 153,248,188 Net (loss) / income per ordinary share —Basic (7.02) (5.30) 1.28 —Diluted (7.02) (5.30) 1.24 |
Schedule of antidilutive securities | Securities that could potentially dilute basic net (loss) / income per share in the future that were not included in the computation of diluted net (loss) / income per share because to do so would have been antidilutive for the years ended December 31, 2017, 2018 and 2019 are as follow: For the Year Ended December 31, 2017 2018 2019 Share options 4,265,750 5,314,246 4,180,000 Unvested restricted share units — 100,000 — Restricted ordinary shares 32,689,010 — — Series Seed Preferred Shares 30,000,000 — — Series A Preferred Shares 25,278,350 — — Convertible loan 10,119,329 — — |
REVENUE INFORMATION (Tables)
REVENUE INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE INFORMATION | |
Schedule of net revenues | For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Electronic scooter sales 709,595,841 1,370,522,269 1,787,274,271 Accessory and spare parts sales 49,159,080 91,373,179 253,799,782 Service revenues 10,613,080 15,885,856 35,215,048 Revenues 769,368,001 1,477,781,304 2,076,289,101 |
Schedule of the Group's revenue based on geographic areas | For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB PRC 731,423,647 1,318,657,227 1,643,221,531 Europe 36,257,165 148,963,330 274,445,360 Others 1,687,189 10,160,747 158,622,210 Revenues 769,368,001 1,477,781,304 2,076,289,101 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease commitments | Year ending December 31, RMB 2020 11,817,396 2021 11,278,557 2022 10,131,766 2023 10,131,766 2024 10,131,766 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | As of December 31, 2018 2019 RMB RMB Assets Current assets Cash 149,901,311 120,548,511 Term deposits 27,452,663 174,404,554 Restricted cash 124,357,114 135,130,713 Prepayments and other current assets 3,707,403 7,705,862 Total current assets 305,418,491 437,789,640 Non-current assets Investment in and amount due from subsidiaries, consolidated VIE and VIE’s subsidiaries 405,843,735 479,225,101 Total assets 711,262,226 917,014,741 Liabilities Current liabilities Amount due to subsidiaries, consolidated VIE and VIE’s subsidiaries 4,262,270 4,262,270 Accrued expenses and other current liabilities 7,593,082 451,354 Total current liabilities and total liabilities 11,855,352 4,713,624 Shareholders’ equity: Class A ordinary shares 83,120 84,494 Class B ordinary shares 12,839 11,977 Additional paid-in capital 1,717,483,548 1,738,102,741 Accumulated other comprehensive loss (25,394,429) (13,895,942) Accumulated deficit (992,778,204) (812,002,153) Total shareholders’ equity 699,406,874 912,301,117 Total liabilities and shareholders’ equity 711,262,226 917,014,741 |
Schedule of condensed statements of results of operations | For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Total operating expenses 3,029,256 (1,908,610) (3,810,862) Changes in fair value of a convertible loan (43,006,399) (34,499,858) — Share of (losses) / income from subsidiaries, consolidated VIE and VIE’s subsidiaries (62,527,098) (331,955,300) 174,142,290 Interest income 366,795 2,011,390 10,444,623 (Loss) / income before income taxes (102,137,446) (366,352,378) 180,776,051 Income tax expense — — — Net (loss) / income (102,137,446) (366,352,378) 180,776,051 |
Schedule of condensed statements of cash flows | For the Year Ended December 31, 2017 2018 2019 RMB RMB RMB Net cash provided by / (used in) operating activities 79,113,690 (351,432,253) 124,118,382 Net cash used in investing activities — (19,902,073) (144,813,597) Net cash provided by / (used in) financing activities — 481,123,035 (2,133,713) Effect of foreign currency exchange rate changes on cash and restricted cash (6,058,261) 7,176,014 4,249,727 Net increase in cash and restricted cash 73,055,429 116,964,723 (18,579,201) Cash and restricted cash at the beginning of the year 84,238,273 157,293,702 274,258,425 Cash and restricted cash at the end of the year 157,293,702 274,258,425 255,679,224 |
DESCRIPTION OF ORGANIZATION A_3
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES - Principal terms of VIE Agreements (Details) | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of monthly net profits under Exclusive Business Cooperation Agreement | 100.00% |
Maximum equity holders' interests permitted under Exclusive Option Agreement | ¥ 100 |
Minimum value of material assets for dispositions under Exclusive Option Agreement | ¥ 100,000 |
DESCRIPTION OF ORGANIZATION A_4
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES - Group's VIE information (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
Group's VIE information | |||||
Cash | $ 40,211,719 | ¥ 569,059,591 | ¥ 279,945,942 | ||
Short-term investments | 44,591,818 | 120,241,425 | 310,439,321 | ||
Accounts receivable, net | 16,551,567 | 54,424,845 | 115,228,700 | ||
Inventories | 25,659,068 | 142,382,205 | 178,633,299 | ||
Prepayments and other current assets | 4,450,305 | 26,919,954 | 30,982,131 | ||
Total current assets | 188,355,026 | 1,119,743,397 | 1,311,290,018 | ||
Property, plant and equipment, net | 21,674,185 | 40,985,174 | 150,891,344 | ||
Intangible assets, net | 1,117,491 | 7,717,754 | 7,779,749 | ||
Land use right, net | 4,934,921 | 34,355,936 | |||
Other non-current assets | 936,907 | 16,805,474 | 6,522,561 | ||
Total assets | 217,018,530 | 1,185,251,799 | 1,510,839,608 | ||
Short-term bank borrowings | 31,226,713 | 179,978,003 | 217,394,132 | ||
Accounts payable | 37,201,336 | 249,665,890 | 258,988,264 | ||
Advances from customers | 1,074,192 | 20,505,861 | 7,478,309 | ||
Deferred revenue - current | 4,468,054 | 12,666,330 | 31,105,700 | ||
Accrued expenses and other current liabilities | 25,213,795 | 134,184,026 | 175,533,397 | ||
Income taxes payable | 432,906 | 3,013,805 | |||
Total current liabilities | 99,616,996 | 597,000,110 | 693,513,607 | ||
Deferred revenue - non current | 311,849 | 234,801 | 2,171,033 | ||
Deferred income tax liability | 181,818 | 1,265,780 | |||
Other non-current liabilities | 3,211,665 | 17,609,842 | 22,358,968 | ||
Total liabilities | 103,322,328 | 614,844,753 | 719,309,388 | ||
Revenues | 298,240,268 | ¥ 2,076,289,101 | 1,477,781,304 | ¥ 769,368,001 | |
Net (loss) / income | 27,303,970 | 190,084,771 | (349,027,476) | (184,662,871) | |
Net cash (used in) / provided by operating activities | 25,665,838 | 178,680,435 | 8,569,117 | 80,063,278 | |
Net cash used in investing activities | (67,208,085) | (467,889,241) | (103,589,651) | (55,928,949) | |
Net cash provided by financing activities | 5,068,001 | 35,282,416 | 555,382,588 | 68,703,310 | |
Effect of foreign currency exchange rate changes on cash | 1,035,094 | 7,206,098 | 6,074,726 | (13,064,824) | |
Net increase in cash | (35,439,152) | (246,720,292) | 466,436,780 | 79,772,815 | |
Cash and restricted cash at the beginning of the year | 107,489,773 | 748,322,305 | 281,885,525 | 202,112,710 | |
Cash and restricted cash at the end of the year | $ 72,050,621 | 501,602,013 | 748,322,305 | 281,885,525 | |
VIE | |||||
Group's VIE information | |||||
Cash | 90,723,253 | 93,548,349 | |||
Short-term investments | 120,241,425 | 310,439,321 | |||
Accounts receivable, net | 54,424,845 | 115,228,700 | |||
Inventories | 142,155,411 | 178,476,473 | |||
Prepayments and other current assets | 22,711,514 | 18,613,814 | |||
Amounts due from intercompany | 4,262,270 | 4,303,778 | |||
Total current assets | 434,518,718 | 720,610,435 | |||
Property, plant and equipment, net | 40,580,352 | 148,937,701 | |||
Intangible assets, net | 580,667 | 1,962,530 | |||
Land use right, net | 34,355,936 | ||||
Other non-current assets | 16,805,475 | 5,961,241 | |||
Total assets | 492,485,212 | 911,827,843 | |||
Short-term bank borrowings | 179,978,003 | 217,394,132 | |||
Accounts payable | 249,665,890 | 258,988,264 | |||
Amounts due to intercompany | 211,250,230 | 306,137,760 | |||
Advances from customers | 20,505,861 | 7,478,309 | |||
Deferred revenue - current | 12,666,330 | 31,105,700 | |||
Accrued expenses and other current liabilities | 119,242,975 | 164,442,316 | |||
Income taxes payable | 0 | 3,013,805 | |||
Total current liabilities | 793,309,289 | 988,560,286 | |||
Deferred revenue - non current | 234,801 | 2,171,033 | |||
Deferred income tax liability | 0 | 1,265,780 | |||
Other non-current liabilities | 17,609,842 | 22,358,968 | |||
Total liabilities | 811,153,932 | ¥ 1,014,356,067 | |||
Revenues | 2,115,501,618 | 1,477,593,628 | 769,368,001 | ||
Net (loss) / income | 196,473,033 | (294,156,973) | (145,154,084) | ||
Net cash (used in) / provided by operating activities | 284,907,333 | 14,379,166 | (2,423,156) | ||
Net cash used in investing activities | (319,696,832) | (74,333,070) | (55,928,949) | ||
Net cash provided by financing activities | 37,416,129 | 78,199,492 | 68,703,310 | ||
Effect of foreign currency exchange rate changes on cash | 198,466 | 684,791 | (813,270) | ||
Net increase in cash | 2,825,096 | 18,930,379 | 9,537,935 | ||
Cash and restricted cash at the beginning of the year | 90,723,253 | 71,792,874 | 62,254,939 | ||
Cash and restricted cash at the end of the year | ¥ 93,548,349 | ¥ 90,723,253 | ¥ 71,792,874 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2019¥ / $ |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Convenience translation rate (in RMB/USD) | 6.9618 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash | ||
Total cash balances held at financial institutions | ¥ 279,742,341 | ¥ 568,739,787 |
Minimum | ||
Cash | ||
Original maturities of term deposit | 3 months | |
Maximum | ||
Cash | ||
Original maturities of term deposit | 1 year | |
PRC | ||
Cash | ||
Total cash balances held at financial institutions | ¥ 268,438,586 | 301,112,759 |
PRC | Denominated in RMB | ||
Cash | ||
Total cash balances held at financial institutions | 90,078,714 | 145,529,365 |
PRC | Denominated in USD | ||
Cash | ||
Total cash balances held at financial institutions | 178,359,872 | 155,583,394 |
United States | ||
Cash | ||
Total cash balances held at financial institutions | 3,523,116 | 4,038,742 |
United States | Denominated in USD | ||
Cash | ||
Total cash balances held at financial institutions | 3,523,116 | 4,038,742 |
Hong Kong SAR | ||
Cash | ||
Total cash balances held at financial institutions | 6,015,191 | 263,588,286 |
Hong Kong SAR | Denominated in USD | ||
Cash | ||
Total cash balances held at financial institutions | 6,015,191 | ¥ 263,588,286 |
Indonesia | ||
Cash | ||
Total cash balances held at financial institutions | 1,765,448 | |
Indonesia | Denominated in USD | ||
Cash | ||
Total cash balances held at financial institutions | ¥ 1,765,448 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted cash (Details) | 12 Months Ended | |||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2016CNY (¥) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net cash provided by operating activities | $ 25,665,838 | ¥ 178,680,435 | ¥ 8,569,117 | ¥ 80,063,278 | ||||
Net cash provided by financing activities | 5,068,001 | 35,282,416 | 555,382,588 | 68,703,310 | ||||
Effect of foreign currency exchange rate changes on restricted cash | 1,035,094 | 7,206,098 | 6,074,726 | (13,064,824) | ||||
Net increase / (decrease) in cash and restricted cash | (35,439,152) | ¥ (246,720,292) | 466,436,780 | 79,772,815 | ||||
Reconciliation of cash and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows | ||||||||
Cash | 40,211,719 | ¥ 279,945,942 | ¥ 569,059,591 | |||||
Restricted cash, current | 31,838,902 | 221,656,071 | 179,262,714 | |||||
Total cash and restricted cash | $ 72,050,621 | 281,885,525 | ¥ 501,602,013 | $ 107,489,773 | ¥ 748,322,305 | ¥ 202,112,710 | ||
2016-18 | Adjustment | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net cash provided by operating activities | 789,751 | |||||||
Net cash provided by financing activities | 66,288,600 | |||||||
Effect of foreign currency exchange rate changes on restricted cash | 8,583,763 | (7,391,400) | ||||||
Net increase / (decrease) in cash and restricted cash | ¥ 9,373,514 | ¥ 58,897,200 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories, Property, plant and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Building | |
Estimated useful lives | |
Property, plant and equipment, useful life | 50 years |
Machinery and equipment | Minimum | |
Estimated useful lives | |
Property, plant and equipment, useful life | 3 years |
Machinery and equipment | Maximum | |
Estimated useful lives | |
Property, plant and equipment, useful life | 10 years |
Furniture | |
Estimated useful lives | |
Property, plant and equipment, useful life | 3 years |
Leasehold improvements | |
Estimated useful lives | |
Property, plant and equipment, useful life | 3 years |
Office and electronic equipment | Minimum | |
Estimated useful lives | |
Property, plant and equipment, useful life | 2 years |
Office and electronic equipment | Maximum | |
Estimated useful lives | |
Property, plant and equipment, useful life | 5 years |
Motor vehicles | |
Estimated useful lives | |
Property, plant and equipment, useful life | 4 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets, Impairment of Long-lived Assets (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Estimated useful life of land use right, net | 50 years | ||
Impairment of Long-lived Assets | |||
Impairment of long-lived assets | ¥ 0 | ¥ 0 | ¥ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Value added taxes, Revenue recognition (Details) | 12 Months Ended | ||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Apr. 01, 2019 | May 01, 2018 | Apr. 30, 2018 | |
Value added taxes | |||||||
VAT rate (in percentage) | 6.00% | 13.00% | 16.00% | 17.00% | |||
Revenue recognition | |||||||
Return and refund policy term (in days) | 7 days | 7 days | |||||
Cost of revenues | $ 228,351,654 | ¥ 1,589,738,548 | ¥ 1,279,155,847 | ¥ 714,669,718 | |||
Transaction price allocated to remaining performance obligations | 47,461,086 | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 | |||||||
Revenue recognition | |||||||
Transaction price allocated to remaining performance obligations | ¥ 45,290,053 | ||||||
Period over which remaining performance obligation is expected to be recognized as revenue | 12 months | ||||||
Shipping costs incurred | |||||||
Revenue recognition | |||||||
Cost of revenues | ¥ 31,912,258 | ¥ 16,752,785 | ¥ 8,917,910 | ||||
Minimum | |||||||
Revenue recognition | |||||||
Free service period | 1 year | 1 year | |||||
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31 | |||||||
Revenue recognition | |||||||
Transaction price allocated to remaining performance obligations | ¥ 2,171,033 | ||||||
Period over which remaining performance obligation is expected to be recognized as revenue | 12 months | ||||||
Maximum | |||||||
Revenue recognition | |||||||
Free service period | 2 years | 2 years | |||||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31 | |||||||
Revenue recognition | |||||||
Period over which remaining performance obligation is expected to be recognized as revenue | 24 months |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contract Balances (Details) | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Advances from customers | $ 1,074,192 | ¥ 7,478,309 | ¥ 20,505,861 | |
Accrued expenses and other current liabilities | $ 25,213,795 | 175,533,397 | ¥ 134,184,026 | |
Changes in the Group's contract liabilities (advances from customers and deferred revenue) | ||||
Contract liabilities as of January 1, 2019 prior to adoption of ASC 606 | ¥ 33,406,992 | |||
Reclassification of VAT payable to Accrued expenses and other liabilities as of January 1, 2019 as a result of adoption of ASC 606 | (2,348,375) | |||
Cash received in advance, excluding VAT | 1,967,468,291 | |||
Revenue recognized from opening balance of contract liabilities | (30,823,816) | |||
Revenue recognized from contract liabilities arising during current year | (1,926,948,050) | |||
Contract liabilities as of December 31, 2019 | ¥ 40,755,042 | |||
2016-18 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Advances from customers | 7,478,309 | |||
Accrued expenses and other current liabilities | 175,533,397 | |||
2016-18 | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Advances from customers | 497,004 | |||
Accrued expenses and other current liabilities | (497,004) | |||
2016-18 | Amounts without adoption of ASC 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Advances from customers | 7,975,313 | |||
Accrued expenses and other current liabilities | ¥ 175,036,393 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Selling and Marketing Expenses, Employee Benefits (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Advertising expenses | ¥ 79,533,394 | ¥ 76,791,991 | ¥ 28,345,034 |
Employee social benefits included as expenses | ¥ 20,729,717 | ¥ 15,544,106 | ¥ 13,705,669 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration and risk (Details) | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Concentration and risk | |||||
Accounts receivable | ¥ 54,424,845 | $ 16,551,567 | ¥ 115,228,700 | ||
Advances from customers | 20,505,861 | 1,074,192 | 7,478,309 | ||
Accounts payable | 249,665,890 | $ 37,201,336 | 258,988,264 | ||
Total purchases | Suppliers risk | Supplier F | |||||
Concentration and risk | |||||
Total purchases | ¥ 225,527,597 | ¥ 193,555,999 | |||
Concentration risk (as a percent) | 15.00% | 15.00% | |||
Total purchases | Suppliers risk | Supplier A | |||||
Concentration and risk | |||||
Total purchases | ¥ 173,723,118 | ¥ 150,385,652 | ¥ 187,065,077 | ||
Concentration risk (as a percent) | 11.00% | 12.00% | 21.00% | ||
Total purchases | Suppliers risk | Supplier B | |||||
Concentration and risk | |||||
Total purchases | ¥ 152,966,930 | ||||
Concentration risk (as a percent) | 18.00% | ||||
Accounts receivable | Customer risk | Customer Y | |||||
Concentration and risk | |||||
Accounts receivable | ¥ 45,980,177 | ||||
Concentration risk (as a percent) | 84.00% | ||||
Accounts receivable | Customer risk | Customer Z | |||||
Concentration and risk | |||||
Accounts receivable | 46,263,295 | ||||
Concentration risk (as a percent) | 40.00% | ||||
Advances from customers | Customer risk | Customer U | |||||
Concentration and risk | |||||
Advances from customers | 1,090,262 | ||||
Concentration risk (as a percent) | 15.00% | ||||
Advances from customers | Customer risk | Customer W | |||||
Concentration and risk | |||||
Advances from customers | 767,993 | ||||
Concentration risk (as a percent) | 10.00% | ||||
Accounts payable | Suppliers risk | Supplier F | |||||
Concentration and risk | |||||
Accounts payable | ¥ 25,702,037 | ¥ 26,134,706 | |||
Concentration risk (as a percent) | 10.00% | 10.00% | |||
Accounts payable | Suppliers risk | Supplier E | |||||
Concentration and risk | |||||
Accounts payable | ¥ 26,483,893 | ||||
Concentration risk (as a percent) | 11.00% |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of operating segment | 1 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Statutory Reserves (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of after tax profit, transferred annually by PRC subsidiaries to statutory surplus fund | 10.00% | ||
Maximum percentage criteria for appropriation of after-tax profit of PRC subsidiaries to statutory surplus fund (as a percent) | 50.00% | ||
Appropriations to statutory reserves | ¥ 3,316,650 | ¥ 0 | ¥ 0 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
SHORT-TERM INVESTMENTS | |||
Aggregate cost basis | ¥ 308,150,000 | ¥ 120,000,000 | |
Gross unrealized holding gain | 2,289,321 | 241,425 | |
Aggregate fair value | $ 44,591,818 | 310,439,321 | 120,241,425 |
Gross unrealized holding losses | ¥ 0 | ¥ 0 |
ACCOUNTS RECEIVABLES, NET (Deta
ACCOUNTS RECEIVABLES, NET (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
ACCOUNTS RECEIVABLES, NET | |||||
Accounts receivable | ¥ 118,517,235 | ¥ 54,652,991 | |||
Allowance for doubtful accounts | (3,288,535) | (228,146) | ¥ (1,956,245) | ¥ (47,846) | |
Accounts receivable, net | $ 16,551,567 | ¥ 115,228,700 | ¥ 54,424,845 |
ACCOUNTS RECEIVABLES, NET - Mov
ACCOUNTS RECEIVABLES, NET - Movement of the allowance for doubtful accounts (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of movement of the allowance for doubtful accounts | |||
Balance at the beginning of the year | ¥ 228,146 | ¥ 1,956,245 | ¥ 47,846 |
Additions / (reversals) charged to bad debt expense | 3,060,389 | (1,215,464) | 1,908,399 |
Write-off of bad debt allowance | (512,635) | ||
Balance at the end of the year | ¥ 3,288,535 | ¥ 228,146 | ¥ 1,956,245 |
INVENTORIES (Details)
INVENTORIES (Details) | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2017CNY (¥) | |
INVENTORIES | ||||
Raw materials | ¥ 120,290,456 | ¥ 151,975,367 | ||
Works in progress | 1,948,838 | 1,481,938 | ||
Finished goods | 20,142,911 | 25,175,994 | ||
Inventories | 142,382,205 | $ 25,659,068 | 178,633,299 | |
Loss on inventories damaged from a warehouse fire accident | 18,254,406 | |||
Write-downs made | ¥ 0 | ¥ 10,491,137 | ¥ 0 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Advances to suppliers | ¥ 11,124,716 | ¥ 15,507,866 | |
Deductible input VAT and VAT rebates receivable | 8,678,443 | 7,855,998 | |
Staff advances | 514,328 | 447,791 | |
Interest receivable | 5,369,826 | 659,194 | |
Others | 5,294,818 | 2,449,105 | |
Prepayments and other current assets | $ 4,450,305 | ¥ 30,982,131 | ¥ 26,919,954 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | ¥ 71,236,365 | ¥ 210,618,873 | |||
Less: Accumulated depreciation | (30,251,191) | (59,727,529) | |||
Property, Plant and equipment, net | 40,985,174 | $ 21,674,185 | 150,891,344 | ||
Depreciation expenses | ¥ 29,501,123 | 16,808,987 | ¥ 9,049,769 | ||
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 22,615,657 | 47,307,840 | |||
Furniture | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 36,630,720 | 76,258,884 | |||
Office and electronic equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 9,071,471 | 16,909,504 | |||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 2,116,266 | 4,081,766 | |||
Motor vehicles | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | ¥ 802,251 | 1,173,634 | |||
Building and building improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | ¥ 64,887,245 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Depreciation expenses (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation expense on property and equipment | |||
Total depreciation expense | ¥ 29,501,123 | ¥ 16,808,987 | ¥ 9,049,769 |
Cost of revenues | |||
Depreciation expense on property and equipment | |||
Total depreciation expense | 6,109,583 | 4,638,662 | 4,217,126 |
General and administrative expenses | |||
Depreciation expense on property and equipment | |||
Total depreciation expense | 3,403,502 | 2,261,620 | 1,873,711 |
Selling and marketing expenses | |||
Depreciation expense on property and equipment | |||
Total depreciation expense | 19,025,624 | 9,438,501 | 2,646,204 |
Research and development expenses | |||
Depreciation expense on property and equipment | |||
Total depreciation expense | ¥ 962,414 | ¥ 470,204 | ¥ 312,728 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2019CNY (¥) | |
INTANGIBLE ASSETS, NET | |||
Gross carrying amount | ¥ 12,048,505 | ¥ 14,676,141 | |
Accumulated amortization | (4,330,751) | (6,896,392) | |
Net carrying amount | $ 1,117,491 | ¥ 7,717,754 | 7,779,749 |
Estimated amortization expense for the year ending 2020 | 1,969,336 | ||
Estimated amortization expense for the year ending 2021 | 1,969,336 | ||
Estimated amortization expense for the year ending 2022 | 1,969,336 | ||
Estimated amortization expense for the year ending 2023 | 535,118 | ||
Estimated amortization expense for the year ending 2024 | 248,274 | ||
Trademarks | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 5 years | ||
Gross carrying amount | ¥ 8,564,505 | 8,911,271 | |
Accumulated amortization | (1,427,418) | (3,193,738) | |
Net carrying amount | ¥ 7,137,087 | 5,717,533 | |
Trademarks | Maximum | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 10 years | ||
Trademarks | Minimum | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 5 years | ||
Domain name | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 5 years | ||
Gross carrying amount | ¥ 3,484,000 | 3,821,474 | |
Accumulated amortization | (2,903,333) | (3,517,748) | |
Net carrying amount | ¥ 580,667 | 303,726 | |
Domain name | Maximum | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 10 years | ||
Domain name | Minimum | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 5 years | ||
License | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 10 years | ||
Gross carrying amount | 1,943,396 | ||
Accumulated amortization | (184,906) | ||
Net carrying amount | ¥ 1,758,490 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization Expense on Intangible Assets (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation expense on property and equipment | |||
Total amortization expense | ¥ 2,521,709 | ¥ 2,072,389 | ¥ 696,800 |
Cost of revenues | |||
Depreciation expense on property and equipment | |||
Total amortization expense | 184,906 | ||
General and administrative expenses | |||
Depreciation expense on property and equipment | |||
Total amortization expense | ¥ 2,336,803 | ¥ 2,072,389 | ¥ 696,800 |
LAND USE RIGHT, NET (Details)
LAND USE RIGHT, NET (Details) | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Property, Plant and Equipment [Line Items] | |||||
Gross carrying amount | ¥ 71,236,365 | ¥ 210,618,873 | |||
Less: Accumulated depreciation | (30,251,191) | (59,727,529) | |||
Property, Plant and equipment, net | 40,985,174 | $ 21,674,185 | 150,891,344 | ||
Amortization expenses | ¥ 2,521,709 | 2,072,389 | ¥ 696,800 | ||
General and administrative expenses | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization expenses | 2,336,803 | ¥ 2,072,389 | ¥ 696,800 | ||
Land use right, net | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross carrying amount | 34,761,487 | ||||
Less: Accumulated depreciation | (405,551) | ||||
Property, Plant and equipment, net | ¥ 34,355,936 | ||||
Land use right, net | General and administrative expenses | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization expenses | ¥ 405,551 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
OTHER NON-CURRENT ASSETS | ||||
Prepayments for land use right | ¥ 10,000,000 | |||
Others | [1] | ¥ 6,522,561 | 6,805,474 | |
Other non-current assets | $ 936,907 | ¥ 6,522,561 | ¥ 16,805,474 | |
[1] | Others mainly include deposits and prepayments for equipment and intangible assets. |
SHORT-TERM BANK BORROWINGS AN_3
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH (Details) | Dec. 12, 2019CNY (¥) | Jun. 12, 2019USD ($) | Jan. 23, 2019 | Feb. 08, 2018CNY (¥) | Nov. 30, 2019CNY (¥) | Oct. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Nov. 30, 2017USD ($) | Aug. 31, 2017CNY (¥) | Mar. 31, 2016USD ($)agreement | Dec. 31, 2015USD ($)agreement | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Apr. 15, 2020 | Dec. 31, 2019CNY (¥) | Jun. 23, 2019CNY (¥) | Jun. 12, 2019CNY (¥) | Nov. 30, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Short-term bank borrowings | ¥ 179,978,003 | ¥ 179,978,003 | ¥ 217,394,132 | |||||||||||||||||||
Restricted cash | 179,262,714 | $ 31,838,902 | 179,262,714 | 221,656,071 | ||||||||||||||||||
Drawdowns repaid | $ 32,874,273 | ¥ 228,864,111 | 188,234,207 | ¥ 49,997,837 | ||||||||||||||||||
East West Bank loan | ||||||||||||||||||||||
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Short-term bank borrowings | 99,978,003 | 99,978,003 | 48,910,799 | |||||||||||||||||||
Number of line of credit agreements | agreement | 2 | 2 | ||||||||||||||||||||
Debt term | 1 year | 1 year | ||||||||||||||||||||
Face amount | ¥ 37,796,907 | |||||||||||||||||||||
Maximum credit facility amount | ¥ 100,000,000 | ¥ 100,000,000 | ||||||||||||||||||||
Interest rate (in percent) | 4.20% | 2.80% | 2.80% | 2.80% | 2.80% | |||||||||||||||||
Collateral deposits | $ 16,000,000 | $ 16,000,000 | ¥ 103,674,877 | ¥ 103,674,877 | ||||||||||||||||||
Restricted cash | 109,811,200 | 109,811,200 | 56,525,358 | |||||||||||||||||||
Drawdowns repaid | ¥ 52,933,631 | ¥ 35,930,480 | ||||||||||||||||||||
East West Bank loan | Subsequent Event | ||||||||||||||||||||||
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Interest rate (in percent) | 4.75% | |||||||||||||||||||||
Bank of China loan | ||||||||||||||||||||||
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Short-term bank borrowings | ¥ 20,000,000 | 20,000,000 | 20,000,000 | |||||||||||||||||||
Debt term | 1 year | 1 year | 1 year | 6 months | ||||||||||||||||||
Face amount | ¥ 20,000,000 | ¥ 20,000,000 | ¥ 20,000,000 | ¥ 10,000,000 | ¥ 20,000,000 | 20,000,000 | ||||||||||||||||
Interest rate (in percent) | 4.5675% | 4.5675% | 4.5675% | 4.5675% | 4.5675% | |||||||||||||||||
SPD Silicon Valley Bank loan | ||||||||||||||||||||||
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Short-term bank borrowings | ¥ 60,000,000 | ¥ 60,000,000 | 120,000,000 | |||||||||||||||||||
Debt term | 1 year | 1 year | ||||||||||||||||||||
Maximum credit facility amount | ¥ 120,000,000 | ¥ 60,000,000 | ||||||||||||||||||||
Interest rate (in percent) | 4.35% | 4.35% | ||||||||||||||||||||
Collateral deposits | $ 19,149,307 | $ 10,000,000 | ¥ 132,000,000 | ¥ 66,288,600 | ||||||||||||||||||
SPD Silicon Valley Bank loan | Jiangsu Xiaoniu | ||||||||||||||||||||||
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Debt term | 1 year | |||||||||||||||||||||
Face amount | 60,000,000 | |||||||||||||||||||||
SPD Silicon Valley Bank loan | Changzhou Niudian | ||||||||||||||||||||||
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Debt term | 1 year | |||||||||||||||||||||
Face amount | ¥ 60,000,000 | |||||||||||||||||||||
Bank of Ningbo loan | ||||||||||||||||||||||
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Short-term bank borrowings | 28,483,333 | |||||||||||||||||||||
Bank of Ningbo loan | Beijing Niudian [Member] | ||||||||||||||||||||||
SHORT-TERM BANK BORROWINGS AND RESTRICTED CASH | ||||||||||||||||||||||
Short-term bank borrowings | ¥ 28,483,333 | |||||||||||||||||||||
Debt term | 1 year | |||||||||||||||||||||
Face amount | 28,483,333 | |||||||||||||||||||||
Interest rate (in percent) | 5.32% | |||||||||||||||||||||
Restricted cash | ¥ 30,000,000 | |||||||||||||||||||||
Restricted Cash Borrowings Guaranteed | ¥ 30,000,000 |
CONVERTIBLE LOAN (Details)
CONVERTIBLE LOAN (Details) | Mar. 26, 2018$ / sharesshares | Dec. 16, 2016USD ($) | Mar. 26, 2018CNY (¥) | Dec. 16, 2016CNY (¥) |
Series A-3 Redeemable Convertible Preferred Shares | ||||
CONVERTIBLE LOAN | ||||
Number of shares issued on debt conversion | shares | 10,119,329 | |||
Conversion price per share | $ / shares | $ 1.66 | |||
Convertible Loan | ||||
CONVERTIBLE LOAN | ||||
Convertible loan | $ 16,827,000 | ¥ 181,112,874 | ¥ 115,808,672 | |
Debt term | 1 year | |||
Interest rate (in percent) | 5.00% | 5.00% | ||
Percentage of entity valuation | 80.00% | 80.00% | ||
Entity valuation | $ | $ 260,400,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Accrued payroll and social insurance | ¥ 30,780,693 | ¥ 32,008,825 | |
Warranty-current | 41,809,564 | 31,262,442 | |
Sales rebate | 40,344,717 | 34,029,433 | |
Construction payable | 18,765,855 | ||
Deposits | 16,293,035 | 16,360,762 | |
Deferred ADR income | 4,250,126 | ||
Other taxes payable | 10,273,637 | 3,656,732 | |
IPO cost payable | 3,130,639 | ||
Interest payable | 2,010,366 | 318,774 | |
Others | 15,255,530 | 9,166,293 | |
Accrued expenses and other current liabilities | $ 25,213,795 | ¥ 175,533,397 | ¥ 134,184,026 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Warranty terms (Details) | 12 Months Ended |
Dec. 31, 2019km | |
Electric motor | |
Warranty terms | |
Warranty term | 24 months |
Kilometer covered under warranty | 30,000 |
Lithium-ion battery packs, model 1 | |
Warranty terms | |
Warranty term | 24 months |
Kilometer covered under warranty | 20,000 |
Lithium-ion battery packs, model 2 | |
Warranty terms | |
Warranty term | 36 months |
Kilometer covered under warranty | 30,000 |
Minimum | |
Warranty terms | |
Warranty term | 6 months |
Minimum | Smart electric-scooters | |
Warranty terms | |
Warranty term | 6 months |
Maximum | |
Warranty terms | |
Warranty term | 3 years |
Maximum | Smart electric-scooters | |
Warranty terms | |
Warranty term | 24 months |
ACCRUED EXPENSES AND OTHER CU_5
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Movement of provision (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement of provision | |||
Accrued warranty-beginning of year | ¥ 48,872,284 | ¥ 30,648,678 | ¥ 17,649,411 |
Accrual for warranties issued during the year | 40,271,444 | 29,346,974 | 27,395,169 |
Warranty claims paid | (22,132,194) | (7,923,760) | (14,395,902) |
Pre-existing warranty expired | (7,059,668) | (3,199,608) | |
Accrued warranty-end of year | ¥ 59,951,866 | ¥ 48,872,284 | ¥ 30,648,678 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
OTHER NON-CURRENT LIABILITIES | |||
Warranty-non-current | ¥ 18,142,302 | ¥ 17,609,842 | |
Deposits for construction of building-non-current | 4,216,666 | ||
Other non-current liabilities | $ 3,211,665 | ¥ 22,358,968 | ¥ 17,609,842 |
REDEEMABLE CONVERTIBLE PREFER_3
REDEEMABLE CONVERTIBLE PREFERRED SHARES (Details) | Mar. 26, 2018USD ($)$ / sharesshares | Mar. 26, 2018CNY (¥)shares | Jan. 29, 2016USD ($)$ / sharesshares | Jan. 29, 2016CNY (¥) | May 27, 2015USD ($)$ / sharesshares | May 27, 2015CNY (¥) | Mar. 05, 2015USD ($)shares | Dec. 31, 2018CNY (¥) | Mar. 26, 2018CNY (¥)shares | Dec. 16, 2016USD ($) | Dec. 16, 2016CNY (¥) |
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |||||||||||
Issuance of convertible loan | $ | $ 3,900,000 | ||||||||||
Interest on convertible loan | $ | $ 0 | ||||||||||
Proceeds from issuance of Redeemable Convertible Preferred Shares | ¥ | ¥ 161,392,196 | ||||||||||
Convertible Loan | |||||||||||
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |||||||||||
Outstanding principal converted | $ | $ 16,827,000 | ||||||||||
Convertible loan carrying amount | ¥ 181,112,874 | $ 16,827,000 | ¥ 115,808,672 | ||||||||
Series A1 Redeemable Convertible Preferred Shares | |||||||||||
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |||||||||||
Preferred shares, issued | shares | 16,666,667 | 3,250,000 | |||||||||
Issued price per share | $ / shares | $ 1.20 | ||||||||||
Proceeds from issuance of Redeemable Convertible Preferred Shares | $ 16,100,000 | ¥ 101,208,371 | |||||||||
Series A-2 Redeemable Convertible Preferred Shares | |||||||||||
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |||||||||||
Preferred shares, issued | shares | 3,608,247 | ||||||||||
Issued price per share | $ / shares | $ 1.66 | ||||||||||
Proceeds from issuance of Redeemable Convertible Preferred Shares | $ 6,000,000 | ¥ 36,720,422 | |||||||||
Series A-3 Redeemable Convertible Preferred Shares | |||||||||||
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |||||||||||
Preferred shares, issued | shares | 5,003,436 | ||||||||||
Issued price per share | $ / shares | $ 2.08 | ||||||||||
Conversion price per share | $ / shares | $ 1.66 | ||||||||||
Number of shares issued on debt conversion | shares | 10,119,329 | 10,119,329 | |||||||||
Proceeds from issuance of Redeemable Convertible Preferred Shares | $ 10,400,000 | ¥ 67,883,227 | |||||||||
Series B Preferred Shares | |||||||||||
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |||||||||||
Preferred shares, issued | shares | 5,137,859 | ||||||||||
Issued price per share | $ / shares | $ 4.96 | ||||||||||
Proceeds from issuance of Redeemable Convertible Preferred Shares | $ 25,500,000 | ¥ 161,392,196 |
REDEEMABLE CONVERTIBLE PREFER_4
REDEEMABLE CONVERTIBLE PREFERRED SHARES - Series A Preferred Shares activities (Details) | Feb. 28, 2018 | Mar. 31, 2018 | Dec. 31, 2019USD ($)shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2019CNY (¥) |
Conversion Rights | |||||
Minimum percentage of shareholders approval needed to waive the foregoing pre-offering valuation and gross proceeds requirements | $ | $ 1,000,000,000 | ||||
Minimum market capitalization criteria for Qualified IPO | $ | $ 100,000,000 | ||||
Liquidation Preferences | |||||
Balance at beginning | ¥ 252,506,413 | ¥ 237,844,515 | |||
Issuance of preferred shares | 342,505,070 | ||||
Foreign currency translation adjustment | (14,661,898) | 47,712,689 | |||
Conversion to Ordinary Shares | (628,062,274) | ||||
Balance at end | ¥ 237,844,515 | ||||
Series A Preferred Shares | |||||
Conversion Rights | |||||
Conversion of Preferred Shares in to ordinary share | shares | 1 | 1 | |||
Minimum percentage of shareholders approval needed to convert Preferred Shares into Ordinary Shares | 0.67% | ||||
Minimum percentage of holders consent for qualified IPO | 0.67% | ||||
Liquidation Preferences | |||||
Percentage of liquidation preference on preferred share issue price | 150.00% | 150.00% | |||
Series A1 Redeemable Convertible Preferred Shares | |||||
Liquidation Preferences | |||||
Balance at beginning | ¥ 138,740,003 | 130,684,003 | |||
Foreign currency translation adjustment | (8,056,000) | 8,090,000 | |||
Conversion to Ordinary Shares | (138,774,003) | ||||
Balance at end | 130,684,003 | ||||
Series A-2 Redeemable Convertible Preferred Shares | |||||
Liquidation Preferences | |||||
Balance at beginning | 41,621,992 | 39,205,192 | |||
Foreign currency translation adjustment | (2,416,800) | 2,427,000 | |||
Conversion to Ordinary Shares | (41,632,192) | ||||
Balance at end | 39,205,192 | ||||
Series A-3 Redeemable Convertible Preferred Shares | |||||
Liquidation Preferences | |||||
Balance at beginning | 72,144,418 | 67,955,320 | |||
Issuance of preferred shares | 181,112,874 | ||||
Foreign currency translation adjustment | (4,189,098) | 21,651,035 | |||
Conversion to Ordinary Shares | (270,719,229) | ||||
Balance at end | ¥ 67,955,320 | ||||
Series B Preferred Shares | |||||
Liquidation Preferences | |||||
Percentage of liquidation preference on preferred share issue price | 150.00% | ||||
Issuance of preferred shares | 161,392,196 | ||||
Foreign currency translation adjustment | 15,544,654 | ||||
Conversion to Ordinary Shares | ¥ (176,936,850) |
ORDINARY SHARES AND SERIES SE_2
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES (Details) | Sep. 05, 2019shares | Mar. 26, 2018USD ($)shares | Mar. 26, 2018CNY (¥)shares | Oct. 31, 2018USD ($)$ / sharesshares | Oct. 31, 2018CNY (¥)shares | Sep. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥) | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares |
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Ordinary shares, authorized | 5,000,000,000 | 444,721,650 | ||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||||
Consideration for repurchase of ordinary shares | ¥ | ¥ 4,202,335 | |||||||||
Authorized share capital | $ | $ 500,000 | |||||||||
Niu Holding Inc. | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Number of ordinary shares repurchased | 432,000 | 432,000 | ||||||||
Consideration for repurchase of ordinary shares | $ 665,000 | ¥ 4,202,335 | ||||||||
Share re-classified and re-designated as Class B ordinary shares (in shares) | 14,027,020 | |||||||||
ELLY Holdings | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Share re-classified and re-designated as Class B ordinary shares (in shares) | 6,615,000 | |||||||||
Ordinary shares | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Ordinary shares, authorized | 50,000,000 | |||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||||
Class A Ordinary Shares | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Ordinary shares, authorized | 4,900,000,000 | 4,900,000,000 | 4,900,000,000 | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Basis of converted preferred shares to each ordinary share | 1 | |||||||||
Share converted to Class A ordinary shares (in shares) | 1 | |||||||||
Ordinary shares, outstanding | 130,174,878 | 128,032,038 | ||||||||
Class A Ordinary Shares | IPO | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Number of newly issued ordinary shares under IPO | 14,000,000 | 14,000,000 | ||||||||
Public offering price (in dollars per share) | $ / shares | $ 4.5 | |||||||||
Net proceeds after deducting underwriting commissions and discounts | $ 58,590,000 | ¥ 406,538,433 | ||||||||
Class B Ordinary Shares | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Ordinary shares, authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||
Share converted to Class A ordinary shares (in shares) | 1,400,000 | |||||||||
Basis of re-classified and re-designated to each Class B ordinary share | 1 | |||||||||
Ordinary shares, outstanding | 19,242,020 | 20,642,020 | ||||||||
Series Seed Preferred Shares | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Preferred Shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||
Basis of converted preferred shares to each ordinary share | 1 | |||||||||
Share converted to Class A ordinary shares (in shares) | 30,000,000 | |||||||||
Preferred shares, authorized | 30,000,000 | |||||||||
Series A1 Redeemable Convertible Preferred Shares | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Temporary equity value per share | $ / shares | $ 0.0001 | |||||||||
Share converted to Class A ordinary shares (in shares) | 16,666,667 | |||||||||
Series A-2 Redeemable Convertible Preferred Shares | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Temporary equity value per share | $ / shares | $ 0.0001 | |||||||||
Share converted to Class A ordinary shares (in shares) | 3,608,247 | |||||||||
Series A-3 Redeemable Convertible Preferred Shares | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Temporary equity value per share | $ / shares | $ 0.0001 | |||||||||
Share converted to Class A ordinary shares (in shares) | 15,122,765 | |||||||||
Series B Preferred Shares | ||||||||||
ORDINARY SHARES AND SERIES SEED PREFERRED SHARES | ||||||||||
Preferred shares, outstanding | 5,137,859 | |||||||||
Preferred Shares, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||||
Share converted to Class A ordinary shares (in shares) | 5,137,859 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted ordinary shares (Details) | Oct. 19, 2018CNY (¥) | Jun. 08, 2018CNY (¥)shares | May 27, 2016 | Jan. 07, 2016CNY (¥)shares | Feb. 29, 2016CNY (¥) | May 31, 2015$ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017CNY (¥) |
Research and development expenses | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share-based compensation expenses | ¥ | ¥ 8,935,076 | |||||||||
General and administrative expenses | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share-based compensation expenses | ¥ | ¥ 10,535,229 | ¥ 33,537,572 | ||||||||
Restricted ordinary shares | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Vesting period | 4 years | |||||||||
Period to repurchase restricted ordinary shares | 60 days | |||||||||
Estimated fair value of ordinary shares | $ / shares | $ 0.53 | |||||||||
Share-based compensation expenses, upon waiver of service condition | ¥ | ¥ 7,574,133 | |||||||||
Modification of restricted ordinary shares | shares | 3,307,500 | |||||||||
Unrecognized compensation cost | ¥ | ¥ 9,803,035 | |||||||||
Share-based compensation expenses | ¥ | ¥ 226,242,279 | ¥ 59,230,943 | ||||||||
Total fair value of shares vested | ¥ | 264,075,922 | 58,848,966 | ||||||||
Number of Shares | ||||||||||
Granted (in shares) | shares | 59,459,020 | |||||||||
Restricted ordinary shares | Research and development expenses | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share-based compensation expenses | ¥ | 18,371,203 | 13,045,853 | ||||||||
Restricted ordinary shares | General and administrative expenses | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share-based compensation expenses | ¥ | ¥ 173,156,580 | 207,871,076 | ¥ 46,185,090 | |||||||
Restricted ordinary shares | Mr. Yi'nan Li | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Restricted ordinary shares not to repurchased (in shares) | shares | 9,798,125 | |||||||||
Restricted ordinary shares | Mr. Mingming Huang | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Restricted ordinary shares not to repurchased (in shares) | shares | 451,000 | |||||||||
Restricted ordinary shares | ELLY Holdings | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Vesting period | 4 years | |||||||||
Shares Issued / Transferred | shares | 3,307,500 | |||||||||
Ordinary shares, outstanding | shares | 6,615,000 | |||||||||
Restricted ordinary shares | Smart Power Group Limited | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Vesting period | 3 years | |||||||||
Shares Issued / Transferred | shares | 1,804,000 | |||||||||
Restricted ordinary shares | Smart Power Group Limited | Tranche One | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Vesting percentage | 25.00% | |||||||||
Restricted ordinary shares | Smart Power Group Limited | Tranche Two | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Vesting percentage | 75.00% | |||||||||
Unvested restricted share units | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share-based compensation expenses | ¥ | ¥ 7,602,522 | ¥ 375,123 | ||||||||
Number of Shares | ||||||||||
Unvested balance as of the beginning | shares | 100,000 | |||||||||
Granted (in shares) | shares | 1,694,600 | |||||||||
Vested (in shares) | shares | (50,000) | |||||||||
Unvested balance as of the end | shares | 1,744,600 | 100,000 | ||||||||
Weighted average grant date fair value of restricted shares units | ||||||||||
Unvested balance as of the beginning (in dollars per share) | $ / shares | $ 4.33 | |||||||||
Granted (in dollars per share) | $ / shares | 3.62 | |||||||||
Vested (in dollars per share) | $ / shares | 4.33 | |||||||||
Unvested balance as of the end (in dollars per share) | $ / shares | $ 3.64 | |||||||||
Unvested restricted share units | Research and development expenses | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share-based compensation expenses | ¥ | ¥ 1,146,846 | |||||||||
Unvested restricted share units | General and administrative expenses | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share-based compensation expenses | ¥ | ¥ 4,233,758 | ¥ 375,123 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation expense recognized for restricted ordinary shares (Details) - CNY (¥) | Oct. 19, 2018 | Jun. 08, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Research and development expenses | ||||
SHARE-BASED COMPENSATION | ||||
Total share-based compensation expenses | ¥ 8,935,076 | |||
General and administrative expenses | ||||
SHARE-BASED COMPENSATION | ||||
Total share-based compensation expenses | ¥ 10,535,229 | ¥ 33,537,572 | ||
Restricted ordinary shares | ||||
SHARE-BASED COMPENSATION | ||||
Total share-based compensation expenses | ¥ 226,242,279 | ¥ 59,230,943 | ||
Unrecognized compensation expense | 0 | |||
Restricted ordinary shares | Research and development expenses | ||||
SHARE-BASED COMPENSATION | ||||
Total share-based compensation expenses | 18,371,203 | 13,045,853 | ||
Restricted ordinary shares | General and administrative expenses | ||||
SHARE-BASED COMPENSATION | ||||
Total share-based compensation expenses | ¥ 173,156,580 | ¥ 207,871,076 | ¥ 46,185,090 |
SHARE-BASED COMPENSATION - Tran
SHARE-BASED COMPENSATION - Transfer of ordinary shares (Details) - CNY (¥) | Oct. 19, 2018 | Jun. 08, 2018 |
SHARE-BASED COMPENSATION | ||
Number of ordinary shares consideration transferred | 2,000,000 | |
Consideration paid for transfer of ordinary shares | ¥ 0 | |
General and administrative expenses | ||
SHARE-BASED COMPENSATION | ||
Share-based compensation expenses | ¥ 10,535,229 | ¥ 33,537,572 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share options and restricted share units (Details) | Oct. 19, 2018CNY (¥) | Jun. 08, 2018CNY (¥) | Sep. 30, 2018installmentshares | Mar. 31, 2018shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)installmentshares | Dec. 31, 2018$ / shares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017$ / shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥)shares |
Valuation of options granted | |||||||||||
Weighted average grant date fair value | $ / shares | $ 1.62 | $ 2.11 | $ 0.86 | ||||||||
Research and development expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 8,935,076 | ||||||||||
General and administrative expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 10,535,229 | ¥ 33,537,572 | |||||||||
Unvested restricted share units | |||||||||||
Number of Shares | |||||||||||
Unvested balance as of the beginning | shares | 100,000 | ||||||||||
Granted (in shares) | shares | 1,694,600 | ||||||||||
Unvested balance as of the end | shares | 1,744,600 | 100,000 | |||||||||
Weighted average grant date fair value of restricted shares units | |||||||||||
Unvested balance as of the beginning (in dollars per share) | $ / shares | 4.33 | ||||||||||
Granted (in dollars per share) | $ / shares | 3.62 | ||||||||||
Unvested balance as of the end (in dollars per share) | $ / shares | 3.64 | 4.33 | |||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 7,602,522 | ¥ 375,123 | |||||||||
Unrecognized compensation expense | ¥ | ¥ 37,794,188 | ||||||||||
Expenses expected to be recognized over a weighted average period | 3 years 4 months 10 days | ||||||||||
Unvested restricted share units | Cost of revenues | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 36,332 | ||||||||||
Unvested restricted share units | Selling and marketing expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | 2,185,586 | ||||||||||
Unvested restricted share units | Research and development expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | 1,146,846 | ||||||||||
Unvested restricted share units | General and administrative expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 4,233,758 | ¥ 375,123 | |||||||||
2016 Global Incentive Plan | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Maximum aggregate shares that may be issued | shares | 5,861,480 | ||||||||||
Expiration period | 10 years | ||||||||||
2016 Global Incentive Plan | Restricted share units granted to five independent directors | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Number of share options granted (in shares) | shares | 100,000 | ||||||||||
2016 Global Incentive Plan | Restricted share units, two | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Number of share options granted (in shares) | shares | 428,000 | ||||||||||
2016 Global Incentive Plan | Stock options with exercise price of US$0.20 per share | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Share options granted (in dollars per share) | $ / shares | 0.20 | ||||||||||
Number of share options granted (in shares) | shares | 4,540,000 | ||||||||||
2016 Global Incentive Plan | Stock options with exercise price of nil per share | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Share options granted (in dollars per share) | $ / shares | $ 0 | ||||||||||
Number of share options granted (in shares) | shares | 705,196 | ||||||||||
Amended 2016 Plan | |||||||||||
Number of Shares | |||||||||||
Unvested balance as of the beginning | shares | 5,314,246 | ||||||||||
Granted (in shares) | shares | 4,180,000 | ||||||||||
Exercised (in shares) | shares | (742,840) | ||||||||||
Forfeited (in shares) | shares | (69,050) | ||||||||||
Unvested balance as of the end | shares | 8,682,356 | 5,314,246 | |||||||||
Exercisable at end of period (in shares) | shares | 2,387,959 | 2,387,959 | |||||||||
Weighted average grant date fair value of restricted shares units | |||||||||||
Unvested balance as of the beginning (in dollars per share) | $ / shares | $ 0.17 | ||||||||||
Granted (in dollars per share) | $ / shares | 3.43 | ||||||||||
Exercised (in dollars per share) | $ / shares | 0.19 | ||||||||||
Forfeited (in dollars per share) | $ / shares | 0.20 | ||||||||||
Unvested balance as of the end (in dollars per share) | $ / shares | 1.74 | 0.17 | |||||||||
Options exercisable at end of period (in dollars per share) | $ / shares | $ 0.19 | ||||||||||
Weighted Average Contractual Term | |||||||||||
Outstanding at end of period | 8 years 2 months 5 days | ||||||||||
Options exercisable at end of period | 6 years 5 months 9 days | ||||||||||
Aggregate Intrinsic Value | |||||||||||
Outstanding at end of period | $ | $ 21,950,316 | ||||||||||
Options exercisable at end of period | $ | $ 9,738,313 | ||||||||||
Valuation of options granted | |||||||||||
Risk-free rate of return, Minimum | 1.90% | 2.78% | 2.25% | ||||||||
Risk-free rate of return, Maximum | 3.13% | 2.48% | |||||||||
Volatility, Minimum | 47.90% | 49.90% | 51.70% | ||||||||
Volatility, Maximum | 50.90% | 54.40% | |||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||||||||
Exercise multiple | $ / shares | 2.2 | 2.2 | |||||||||
Fair value of underlying ordinary share, Minimum | $ / shares | 2.05 | 0.44 | |||||||||
Fair value of underlying ordinary share, Maximum | $ / shares | $ 4.10 | $ 1.22 | |||||||||
Fair value of underlying ordinary share | $ / shares | 3.425 | ||||||||||
Expected term | 10 years | 10 years | 10 years | ||||||||
Total share-based compensation expenses | ¥ | ¥ 12,020,257 | ¥ 5,719,953 | ¥ 3,296,155 | ||||||||
Unrecognized compensation expense | ¥ | ¥ 56,411,059 | ||||||||||
Expenses expected to be recognized over a weighted average period | 3 years 3 months 22 days | ||||||||||
Amended 2016 Plan | Minimum | |||||||||||
Valuation of options granted | |||||||||||
Exercise multiple | $ / shares | $ 2.2 | ||||||||||
Amended 2016 Plan | Maximum | |||||||||||
Valuation of options granted | |||||||||||
Exercise multiple | $ / shares | 2.8 | ||||||||||
Amended 2016 Plan | Cost of revenues | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 255,679 | 246,947 | 253,545 | ||||||||
Amended 2016 Plan | Selling and marketing expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | 2,471,725 | 2,124,728 | 1,611,160 | ||||||||
Amended 2016 Plan | Research and development expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | 3,060,263 | 955,538 | 832,782 | ||||||||
Amended 2016 Plan | General and administrative expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 6,232,590 | 2,392,740 | 598,668 | ||||||||
2018 Plan | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Maximum aggregate shares that may be issued | shares | 6,733,703 | ||||||||||
Maximum percentage of total ordinary shares issued and outstanding that may be issued | 1.50% | ||||||||||
Maximum aggregate shares that may be issued, annual increase | shares | 2,230,111 | ||||||||||
Share options granted (in dollars per share) | $ / shares | $ 3.425 | ||||||||||
Number of share options granted (in shares) | shares | 4,180,000 | ||||||||||
Number of equal installments in which the awards can be granted | installment | 4 | 4 | |||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 19,622,779 | 265,874,927 | 62,527,098 | ||||||||
2018 Plan | Cost of revenues | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | 292,011 | 246,947 | 253,545 | ||||||||
2018 Plan | Selling and marketing expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | 4,657,311 | 2,124,728 | 1,611,160 | ||||||||
2018 Plan | Research and development expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | 4,207,109 | 52,864,313 | 13,878,635 | ||||||||
2018 Plan | General and administrative expenses | |||||||||||
Valuation of options granted | |||||||||||
Total share-based compensation expenses | ¥ | ¥ 10,466,348 | ¥ 210,638,939 | ¥ 46,783,758 | ||||||||
2018 Plan | Unvested restricted share units | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Number of equal installments in which the awards can be granted | installment | 4 | ||||||||||
Number of Shares | |||||||||||
Granted (in shares) | shares | 1,266,600 | ||||||||||
Tranche One | 2016 Global Incentive Plan | Stock options with exercise price of US$0.20 per share | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Vesting percentage | 40.00% | ||||||||||
Tranche Two | 2016 Global Incentive Plan | Restricted share units granted to five independent directors | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Number of equal installments in which the awards can be granted | installment | 2 | ||||||||||
Tranche Two | 2016 Global Incentive Plan | Restricted share units, two | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Number of equal installments in which the awards can be granted | installment | 4 | ||||||||||
Tranche Two | 2016 Global Incentive Plan | Stock options with exercise price of US$0.20 per share | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Number of equal installments in which the awards can be granted | installment | 3 | ||||||||||
Tranche Two | 2016 Global Incentive Plan | Stock options with exercise price of nil per share | |||||||||||
SHARE-BASED COMPENSATION | |||||||||||
Number of equal installments in which the awards can be granted | installment | 4 |
FAIR VALUE MEASUREMENT - Fair v
FAIR VALUE MEASUREMENT - Fair value hierarchy for assets and liabilities (Details) - CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value hierarchy for assets and liabilities measured at fair value on recurring basis | ||
Short-term investments (Note 3) | ¥ 310,439,321 | ¥ 120,241,425 |
Level 2 | ||
Fair value hierarchy for assets and liabilities measured at fair value on recurring basis | ||
Short-term investments (Note 3) | ¥ 310,439,321 | ¥ 120,241,425 |
FAIR VALUE MEASUREMENT - Level
FAIR VALUE MEASUREMENT - Level 3 Reconciliation (Details) - CNY (¥) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Level 3 Reconciliation | |||
Conversion to Series A-3 Preferred Shares | ¥ (628,062,274) | ||
Convertible Loan | |||
Level 3 Reconciliation | |||
Convertible loan - beginning of year | ¥ 151,557,796 | ¥ 116,728,899 | ¥ 151,557,796 |
Change in fair value | 34,499,858 | 43,006,399 | |
Conversion to Series A-3 Preferred Shares | (181,112,874) | ||
Foreign currency translation adjustment | ¥ (4,944,780) | (8,177,502) | |
Convertible loan - end of year | ¥ 151,557,796 |
INCOME TAX (Details)
INCOME TAX (Details) - HKD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Indonesia | ||
INCOME TAX | ||
Statutory income tax (as a percent) | 25.00% | |
Hong Kong SAR | ||
INCOME TAX | ||
Statutory income tax (as a percent) | 16.50% | |
Withholding taxes on remittance of dividends | $ 0 | |
Threshold profit taxed at half of the current tax rate under two-tiered profits tax rates regime | $ 2 | |
Tax rate at half of the current tax rate under two-tiered profits tax rates regime | 8.25% | |
PRC | ||
INCOME TAX | ||
Statutory income tax (as a percent) | 25.00% |
INCOME TAX - Components of (los
INCOME TAX - Components of (loss)/income before income taxes and withholding tax on undistributed dividends (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
INCOME TAX | ||||
(Loss)/income before income taxes | $ 28,483,886 | ¥ 198,299,112 | ¥ (349,027,476) | ¥ (184,662,871) |
Current income tax expense | ¥ 7,460,535 | |||
Withholding income tax rate | 5.00% | 5.00% | ||
Percentage of ownership interests held by foreign investors (as a percent) | 25.00% | 25.00% | ||
Deferred income tax expense | ¥ 753,806 | |||
Income tax expense | $ 1,179,916 | 8,214,341 | 0 | 0 |
Cayman | ||||
INCOME TAX | ||||
(Loss)/income before income taxes | 6,633,761 | (34,397,077) | (39,610,348) | |
Indonesia | ||||
INCOME TAX | ||||
(Loss)/income before income taxes | (11,705) | |||
Hong Kong SAR | ||||
INCOME TAX | ||||
(Loss)/income before income taxes | (3,820,485) | (4,507,360) | 219,935 | |
PRC, excluding Hong Kong SAR | ||||
INCOME TAX | ||||
(Loss)/income before income taxes | ¥ 195,497,541 | ¥ (310,123,039) | ¥ (145,272,458) |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of differences between PRC statutory income tax rate and effective income tax rate (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Reconciliation of differences between PRC statutory income tax rate and effective income tax rate | ||||
Computed expected income tax expense | ¥ 49,574,778 | ¥ (87,256,869) | ¥ (46,165,718) | |
Non-PRC entities not subject to income tax | (700,393) | 9,726,109 | 9,847,603 | |
Research and development expenses bonus deduction | (10,181,598) | (7,528,081) | (1,032,177) | |
Non-deductible share-based compensation expenses | 4,532,885 | 66,374,951 | 15,631,775 | |
Other non-deductible expenses | 32,602 | 176,111 | 358,759 | |
Expiration of loss carry forwards | 304,194 | |||
Change in valuation allowance | (35,348,127) | 18,507,779 | 21,359,758 | |
Actual income tax expense | $ 1,179,916 | ¥ 8,214,341 | ¥ 0 | ¥ 0 |
INCOME TAX - Deferred income ta
INCOME TAX - Deferred income tax assets and deferred income tax liabilities (Details) - CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets | ||||
Net operating loss carry forwards | ¥ 39,342,952 | ¥ 74,657,570 | ||
Accrued warranty | 14,987,967 | 12,218,071 | ||
Accrued payroll and social insurance | 3,873,748 | 5,099,295 | ||
Advertising expense | 937,639 | 2,955,152 | ||
Deferred revenue | 6,363,254 | 3,225,283 | ||
Allowance for doubtful accounts | 822,134 | 57,037 | ||
Write-downs for inventories | 2,622,784 | |||
Less: Valuation allowance | (62,864,281) | ¥ (98,212,408) | ¥ (79,704,629) | ¥ (58,344,871) |
Total deferred income tax assets | 6,086,197 | |||
Deferred income tax liabilities | ||||
Short-term investments | 511,975 | |||
Property, plant and equipment | 6,840,002 | |||
Total deferred income tax liabilities | 7,351,977 | |||
Net deferred income tax assets | 6,086,197 | |||
Net deferred income tax liabilities | ¥ 1,265,780 |
INCOME TAX - Operating loss car
INCOME TAX - Operating loss carry forwards (Details) | Dec. 31, 2019CNY (¥) |
INCOME TAX | |
Operating loss carry forwards, Total | ¥ 157,371,809 |
Operating loss carry forwards, 2020 | 22,993,915 |
Operating loss carry forwards, 2021 | 39,644,651 |
Operating loss carry forwards, 2022 | 35,015,516 |
Operating loss carry forwards, 2023 | 50,628,062 |
Operating loss carry forwards, 2024 | ¥ 9,089,665 |
INCOME TAX - Changes in valuati
INCOME TAX - Changes in valuation allowance (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAX | |||
Balance at the beginning of the year | ¥ 98,212,408 | ¥ 79,704,629 | ¥ 58,344,871 |
Additions/(reversals) | (35,348,127) | 18,507,779 | 21,359,758 |
Balance at the end of the year | ¥ 62,864,281 | ¥ 98,212,408 | ¥ 79,704,629 |
INCOME TAX - PRC Tax Administra
INCOME TAX - PRC Tax Administration and Collection Law (Details) | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
INCOME TAX | |
Period of statute of limitations, if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent | 3 years |
Period of statute of limitations, if the underpayment is more than RMB 100,000 | 5 years |
Minimum amount of underpayment of taxes for statute of limitations to be extended to five years | ¥ 100,000 |
Period of statute of limitations for transfer pricing issues | 10 years |
NET (LOSS)_INCOME PER ORDINAR_3
NET (LOSS)/INCOME PER ORDINARY SHARE - Basic and diluted net loss per share computation (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net (loss)/income attributable to ordinary shareholders | $ 27,303,970 | ¥ 190,084,771 | ¥ (349,027,476) | ¥ (184,662,871) |
Denominator: | ||||
Weighted average number of ordinary shares outstanding | 148,896,691 | 148,896,691 | 65,834,876 | 26,295,181 |
Weighted average number of ordinary shares equivalents outstanding | 128,475 | 128,475 | ||
Denominator for basic net (loss) / income per ordinary share | 149,025,166 | 149,025,166 | 65,834,876 | 26,295,181 |
Dilutive effect of outstanding share options | 3,978,477 | 3,978,477 | ||
Dilutive effect of unvested restricted share units | 244,545 | 244,545 | ||
Denominator for diluted net (loss) / income per ordinary share | 153,248,188 | 153,248,188 | 65,834,876 | 26,295,181 |
Net (loss)/income per ordinary share | ||||
Basic (In dollars per share) | (per share) | $ 0.18 | ¥ 1.28 | ¥ (5.30) | ¥ (7.02) |
Diluted (In dollars per share) | (per share) | $ 0.18 | ¥ 1.24 | ¥ (5.30) | ¥ (7.02) |
NET (LOSS)_INCOME PER ORDINAR_4
NET (LOSS)/INCOME PER ORDINARY SHARE - Antidilutive securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share options | |||
Antidilutive securities | |||
Antidilutive securities | 4,180,000 | 5,314,246 | 4,265,750 |
Unvested restricted share units | |||
Antidilutive securities | |||
Antidilutive securities | 100,000 | ||
Restricted ordinary shares | |||
Antidilutive securities | |||
Antidilutive securities | 32,689,010 | ||
Series Seed Preferred Shares | |||
Antidilutive securities | |||
Antidilutive securities | 30,000,000 | ||
Series A Preferred Shares | |||
Antidilutive securities | |||
Antidilutive securities | 25,278,350 | ||
Convertible Loan | |||
Antidilutive securities | |||
Antidilutive securities | 10,119,329 |
REVENUE INFORMATION - Disaggreg
REVENUE INFORMATION - Disaggregation of revenue (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
REVENUE INFORMATION | ||||
Revenues | $ 298,240,268 | ¥ 2,076,289,101 | ¥ 1,477,781,304 | ¥ 769,368,001 |
Electronic scooter sales | ||||
REVENUE INFORMATION | ||||
Revenues | 1,787,274,271 | 1,370,522,269 | 709,595,841 | |
Accessory and spare parts sales | ||||
REVENUE INFORMATION | ||||
Revenues | 253,799,782 | 91,373,179 | 49,159,080 | |
Service revenues | ||||
REVENUE INFORMATION | ||||
Revenues | ¥ 35,215,048 | ¥ 15,885,856 | ¥ 10,613,080 |
REVENUE INFORMATION - Revenues
REVENUE INFORMATION - Revenues based on geographic areas (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 298,240,268 | ¥ 2,076,289,101 | ¥ 1,477,781,304 | ¥ 769,368,001 |
PRC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,643,221,531 | 1,318,657,227 | 731,423,647 | |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 274,445,360 | 148,963,330 | 36,257,165 | |
Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 158,622,210 | ¥ 10,160,747 | ¥ 1,687,189 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |||
Rental expenses | ¥ 10,931,713 | ¥ 7,306,686 | ¥ 4,896,922 |
Future minimum lease commitments | |||
2020 | 11,817,396 | ||
2021 | 11,278,557 | ||
2022 | 10,131,766 | ||
2023 | 10,131,766 | ||
2024 | ¥ 10,131,766 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Current assets | |||||
Cash | $ 40,211,719 | ¥ 279,945,942 | ¥ 569,059,591 | ||
Term deposits | 25,051,647 | 174,404,554 | 27,452,663 | ||
Restricted cash | 31,838,902 | 221,656,071 | 179,262,714 | ||
Prepayments and other current assets | 4,450,305 | 30,982,131 | 26,919,954 | ||
Total current assets | 188,355,026 | 1,311,290,018 | 1,119,743,397 | ||
Non-current assets | |||||
Total assets | 217,018,530 | 1,510,839,608 | 1,185,251,799 | ||
Current liabilities | |||||
Accrued expenses and other current liabilities | 25,213,795 | 175,533,397 | 134,184,026 | ||
Total liabilities | 103,322,328 | 719,309,388 | 614,844,753 | ||
Shareholders' equity: | |||||
Additional paid-in capital | 249,662,837 | 1,738,102,741 | 1,717,483,548 | ||
Accumulated other comprehensive loss | (1,776,584) | (12,368,224) | (22,786,922) | ||
Accumulated deficit | (134,203,908) | (934,300,768) | (1,124,385,539) | ||
Total shareholders' equity | 113,696,202 | 791,530,220 | 570,407,046 | ¥ (325,235,476) | ¥ (213,194,529) |
Total liabilities and shareholders' equity | 217,018,530 | 1,510,839,608 | 1,185,251,799 | ||
Class A Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | 12,137 | 84,494 | 83,120 | ||
Class B Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | $ 1,720 | 11,977 | 12,839 | ||
Parent Company | Reportable Legal Entities | |||||
Current assets | |||||
Cash | 120,548,511 | 149,901,311 | |||
Term deposits | 174,404,554 | 27,452,663 | |||
Restricted cash | 135,130,713 | 124,357,114 | |||
Prepayments and other current assets | 7,705,862 | 3,707,403 | |||
Total current assets | 437,789,640 | 305,418,491 | |||
Non-current assets | |||||
Investment in and amount due from subsidiaries, consolidated VIE and VIE's subsidiaries | 479,225,101 | 405,843,735 | |||
Total assets | 917,014,741 | 711,262,226 | |||
Current liabilities | |||||
Amount due to subsidiaries, consolidated VIE and VIE's subsidiaries | 4,262,270 | 4,262,270 | |||
Accrued expenses and other current liabilities | 451,354 | 7,593,082 | |||
Total liabilities | 4,713,624 | 11,855,352 | |||
Shareholders' equity: | |||||
Additional paid-in capital | 1,738,102,741 | 1,717,483,548 | |||
Accumulated other comprehensive loss | (13,895,942) | (25,394,429) | |||
Accumulated deficit | (812,002,153) | (992,778,204) | |||
Total shareholders' equity | 912,301,117 | 699,406,874 | |||
Total liabilities and shareholders' equity | 917,014,741 | 711,262,226 | |||
Parent Company | Reportable Legal Entities | Class A Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | 84,494 | 83,120 | |||
Parent Company | Reportable Legal Entities | Class B Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | ¥ 11,977 | ¥ 12,839 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Results of Operations (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Statement of Income Captions [Line Items] | ||||
Total operating expenses | $ (47,354,912) | ¥ (329,675,423) | ¥ (514,427,245) | ¥ (197,356,742) |
Changes in fair value of a convertible loan | (34,499,858) | (43,006,399) | ||
Interest income | 2,427,359 | 16,898,785 | 2,998,796 | 1,006,972 |
(Loss) / income before income taxes | 28,483,886 | 198,299,112 | (349,027,476) | (184,662,871) |
Income tax expense | 1,179,916 | 8,214,341 | 0 | 0 |
Net (loss) / income | $ 27,303,970 | 190,084,771 | (349,027,476) | (184,662,871) |
Parent Company | Reportable Legal Entities | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Total operating expenses | (3,810,862) | (1,908,610) | 3,029,256 | |
Changes in fair value of a convertible loan | (34,499,858) | (43,006,399) | ||
Share of (losses) / income from subsidiaries, consolidated VIE and VIE's subsidiaries | 174,142,290 | (331,955,300) | (62,527,098) | |
Interest income | 10,444,623 | 2,011,390 | 366,795 | |
(Loss) / income before income taxes | 180,776,051 | (366,352,378) | (102,137,446) | |
Net (loss) / income | ¥ 180,776,051 | ¥ (366,352,378) | ¥ (102,137,446) |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of cash flows (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed statements of cash flows | ||||
Net cash provided by /(used in) operating activities | $ 25,665,838 | ¥ 178,680,435 | ¥ 8,569,117 | ¥ 80,063,278 |
Net cash provided by /(used in) investing activities | (67,208,085) | (467,889,241) | (103,589,651) | (55,928,949) |
Net cash provided by /(used in) financing activities | 5,068,001 | 35,282,416 | 555,382,588 | 68,703,310 |
Effect of foreign currency exchange rate changes on cash and restricted cash | 1,035,094 | 7,206,098 | 6,074,726 | (13,064,824) |
Net increase / (decrease) in cash and restricted cash | (35,439,152) | (246,720,292) | 466,436,780 | 79,772,815 |
Cash and restricted cash at the beginning of the year | 107,489,773 | 748,322,305 | 281,885,525 | 202,112,710 |
Cash and restricted cash at the end of the year | $ 72,050,621 | 501,602,013 | 748,322,305 | 281,885,525 |
Reportable Legal Entities | Parent Company | ||||
Condensed statements of cash flows | ||||
Net cash provided by /(used in) operating activities | 124,118,382 | (351,432,253) | 79,113,690 | |
Net cash provided by /(used in) investing activities | (144,813,597) | (19,902,073) | ||
Net cash provided by /(used in) financing activities | (2,133,713) | 481,123,035 | ||
Effect of foreign currency exchange rate changes on cash and restricted cash | 4,249,727 | 7,176,014 | (6,058,261) | |
Net increase / (decrease) in cash and restricted cash | (18,579,201) | 116,964,723 | 73,055,429 | |
Cash and restricted cash at the beginning of the year | 274,258,425 | 157,293,702 | 84,238,273 | |
Cash and restricted cash at the end of the year | ¥ 255,679,224 | ¥ 274,258,425 | ¥ 157,293,702 |