Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2023 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38696 |
Entity Registrant Name | Niu Technologies |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | No.1 Building, No. 195 Huilongguan East Road, |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 102208 |
Entity Address, Country | CN |
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 | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001744781 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Auditor Name | KPMG Huazhen LLP |
Auditor Firm ID | 1186 |
Auditor Location | Beijing, China |
Amendment Flag | false |
ICFR Auditor Attestation Flag | true |
Business Contact | |
Document Information | |
Contact Personnel Name | Fion Wenjuan Zhou |
City Area Code | +86 |
Local Phone Number | 10-6432-1899 |
Contact Personnel Email Address | ir@niu.com |
Entity Address, Address Line One | No.1 Building, No. 195 Huilongguan East Road, |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 102208 |
Entity Address, Country | CN |
ADS | |
Document Information | |
Title of 12(b) Security | American depositary shares (one American depositaryshare representing two Class A ordinary shares, parvalue US$0.0001 per share) |
Trading Symbol | NIU |
Security Exchange Name | NASDAQ |
Class A Ordinary Shares | |
Document Information | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 pershare |
Trading Symbol | NIU |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 138,575,010 |
Class B Ordinary Shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 16,542,020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 872,573,460 | $ 122,899,401 | ¥ 534,286,849 |
Term deposits-current | 97,555,565 | 13,740,414 | 208,589,770 |
Restricted cash | 107,666,733 | 15,164,542 | 186,340,321 |
Short-term investments | 160,406,301 | ||
Accounts receivable, net | 94,956,170 | 13,374,297 | 299,742,923 |
Inventories | 392,790,141 | 55,323,334 | 417,009,148 |
Prepayments and other current assets | 195,072,129 | 27,475,335 | 205,695,717 |
Total current assets | 1,760,614,198 | 247,977,323 | 2,012,071,029 |
Non-current assets | |||
Term deposits-non-current | 20,000,000 | ||
Property, plant and equipment, net | 323,112,366 | 45,509,425 | 397,356,795 |
Intangible assets, net | 1,306,401 | 184,003 | 1,857,320 |
Operating lease right-of-use assets | 76,821,285 | 10,820,052 | 86,597,121 |
Deferred income tax assets | 20,747,021 | 2,922,157 | 6,132,499 |
Other non-current assets | 6,730,378 | 947,954 | 12,683,090 |
Total non-current assets | 428,717,451 | 60,383,591 | 524,626,825 |
Total assets | 2,189,331,649 | 308,360,914 | 2,536,697,854 |
Current liabilities | |||
Short-term bank borrowings | 100,000,000 | 14,084,705 | 160,000,000 |
Notes payable (including notes payable of VIE without recourse to the Company were RMB316,832,113 and RMB167,282,688 as of December 31, 2022 and 2023, respectively) | 167,282,688 | 23,561,274 | 316,832,113 |
Accounts payable (including accounts payable of VIE without recourse to the Company of RMB459,406,790 and RMB575,235,413 as of December 31, 2022 and 2023, respectively) | 575,724,288 | 81,089,070 | 459,466,937 |
Income taxes payable (including income taxes payable of VIE without recourse to the Company of RMB1,501,992 and RMB1,195,114 as of December 31, 2022 and 2023, respectively) | 1,357,913 | 191,258 | 1,898,065 |
Advances from customers (including advances from customers of VIE without recourse to the Company of RMB23,522,149 and RMB16,399,926 as of December 31, 2022 and 2023, respectively) | 19,304,488 | 2,718,980 | 24,931,897 |
Deferred revenue-current (including deferred revenue-current of VIE without recourse to the Company of RMB37,539,733 and RMB41,755,097 as of December 31, 2022 and 2023, respectively) | 41,755,097 | 5,881,082 | 37,539,733 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIE without recourse to the Company of RMB175,352,229 and RMB151,286,008 as of December 31, 2022 and 2023, respectively) | 165,511,396 | 23,311,795 | 192,092,943 |
Total current liabilities | 1,070,935,870 | 150,838,164 | 1,192,761,688 |
Non-current liabilities | |||
Deferred revenue-non-current (including deferred revenue non-current of VIE without recourse to the Company of RMB11,429,500 and RMB13,168,111 as of December 31, 2022 and 2023, respectively) | 13,168,111 | 1,854,690 | 11,429,500 |
Deferred income tax liabilities (including deferred income tax liabilities of VIE without recourse to the Company of RMB1,398,279 and RMB2,362,494 as of December 31, 2022 and 2023, respectively) | 2,362,494 | 332,750 | 1,398,279 |
Operating lease liabilities-non-current (including operating lease liabilities of VIE without recourse to the Company were RMB7,569,128 and RMB280,421 as of December 31, 2022 and 2023, respectively) | 280,421 | 39,496 | 7,569,128 |
Other non-current liabilities (including other non-current liabilities of VIE without recourse to the Company of RMB13,441,382 and RMB8,968,519 as of December 31, 2022 and 2023, respectively) | 8,968,519 | 1,263,189 | 13,441,382 |
Total non-current liabilities | 24,779,545 | 3,490,125 | 33,838,289 |
Total liabilities | 1,095,715,415 | 154,328,289 | 1,226,599,977 |
Commitments and contingencies | |||
SHAREHOLDERS' EQUITY: | |||
Additional paid-in capital | 1,964,138,365 | 276,643,103 | 1,915,825,641 |
Accumulated other comprehensive loss | (9,495,674) | (1,337,438) | (16,536,686) |
Accumulated deficit | (861,126,804) | (121,287,174) | (589,290,822) |
Total shareholders' equity | 1,093,616,234 | 154,032,625 | 1,310,097,877 |
Total liabilities and shareholders' equity | 2,189,331,649 | 308,360,914 | 2,536,697,854 |
Class A Ordinary Shares | |||
SHAREHOLDERS' EQUITY: | |||
Ordinary Shares | 90,031 | 12,681 | 89,428 |
Class B Ordinary Shares | |||
SHAREHOLDERS' EQUITY: | |||
Ordinary Shares | ¥ 10,316 | $ 1,453 | ¥ 10,316 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares |
Short-term bank borrowings | ¥ 100,000,000 | $ 14,084,705 | ¥ 160,000,000 |
Notes payable | 167,282,688 | 23,561,274 | 316,832,113 |
Accounts payable | 575,724,288 | 81,089,070 | 459,466,937 |
Income taxes payable | 1,357,913 | 191,258 | 1,898,065 |
Advances from customers | 19,304,488 | 2,718,980 | 24,931,897 |
Deferred revenue - current | 41,755,097 | 5,881,082 | 37,539,733 |
Accrued expenses and other current liabilities | 165,511,396 | 23,311,795 | 192,092,943 |
Deferred revenue-non-current | 13,168,111 | 1,854,690 | 11,429,500 |
Deferred income tax liabilities | 2,362,494 | 332,750 | 1,398,279 |
Operating lease liabilities | 280,421 | 39,496 | 7,569,128 |
Other non-current liabilities | ¥ 8,968,519 | $ 1,263,189 | ¥ 13,441,382 |
Ordinary shares, authorized | shares | 5,000,000,000 | 5,000,000,000 | |
Class A Ordinary Shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Ordinary shares, authorized | shares | 4,900,000,000 | 4,900,000,000 | 4,900,000,000 |
Ordinary shares, issued | shares | 138,575,010 | 138,575,010 | 137,719,542 |
Ordinary shares, outstanding | shares | 138,575,010 | 138,575,010 | 137,719,542 |
Class B Ordinary Shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||
Ordinary shares, authorized | shares | 50,000,000 | 50,000,000 | 50,000,000 |
Ordinary shares, issued | shares | 16,542,020 | 16,542,020 | 16,542,020 |
Ordinary shares, outstanding | shares | 16,542,020 | 16,542,020 | 16,542,020 |
VIE | |||
Short-term bank borrowings | ¥ 100,000,000 | ¥ 160,000,000 | |
Notes payable | 167,282,688 | 316,832,113 | |
Accounts payable | 575,235,413 | 459,406,790 | |
Income taxes payable | 1,195,114 | 1,501,992 | |
Advances from customers | 16,399,926 | 23,522,149 | |
Deferred revenue - current | 41,755,097 | 37,539,733 | |
Accrued expenses and other current liabilities | 151,286,008 | 175,352,229 | |
Deferred revenue-non-current | 13,168,111 | 11,429,500 | |
Deferred income tax liabilities | 2,362,494 | 1,398,279 | |
Operating lease liabilities | 280,421 | 7,569,128 | |
Other non-current liabilities | ¥ 8,968,519 | ¥ 13,441,382 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Revenues | ¥ 2,651,757,646 | $ 373,492,253 | ¥ 3,168,597,334 | ¥ 3,704,537,419 |
Cost of revenues | (2,081,010,633) | (293,104,217) | (2,498,916,443) | (2,891,758,188) |
Gross profit | 570,747,013 | 80,388,036 | 669,680,891 | 812,779,231 |
Operating expenses: | ||||
Selling and marketing expenses | (495,734,694) | (69,822,771) | (440,408,982) | (332,007,462) |
Research and development expenses | (150,985,739) | (21,265,897) | (176,478,130) | (135,218,399) |
General and administrative expenses (including allowance for doubtful accounts of RMB1,272,454, RMB25,044,327 and RMB139,445,017 for the years ended December 31, 2021, 2022 and 2023, respectively) | (244,518,817) | (34,439,755) | (158,460,764) | (141,798,910) |
Total operating expenses | (891,239,250) | (125,528,423) | (775,347,876) | (609,024,771) |
Government grants | 2,968,735 | 418,138 | 16,385,038 | 48,726,818 |
Operating income (loss) | (317,523,502) | (44,722,249) | (89,281,947) | 252,481,278 |
Interest expenses | (1,423,924) | (200,556) | (5,715,878) | (6,167,805) |
Interest income | 35,492,190 | 4,998,970 | 12,860,216 | 5,375,969 |
Investment income | 1,426,370 | 200,900 | 10,917,736 | 21,167,575 |
Income (loss) before income taxes | (282,028,866) | (39,722,935) | (71,219,873) | 272,857,017 |
Income tax (expense) benefit | 10,192,884 | 1,435,638 | 21,756,944 | (47,036,608) |
Net income (loss) | (271,835,982) | (38,287,297) | (49,462,929) | 225,820,409 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment, net of nil income taxes | 7,386,368 | 1,040,348 | 37,342,724 | (9,657,187) |
Unrealized gain on available for sale securities, net income taxes of RMB5,809,288, RMB1,184,686 and RMB3,080 for the year 2021, 2022 and 2023, respectively | 17,454 | 2,458 | 6,460,896 | 17,427,865 |
Less: reclassification adjustment for gain on available for sale securities realized in net income, net income taxes of RMB5,291,894, RMB1,698,460 and RMB64,025 for the year 2021, 2022 and 2023, respectively | (362,810) | (51,100) | (9,219,276) | (15,875,681) |
Comprehensive income (loss) | ¥ (264,794,970) | $ (37,295,591) | ¥ (14,878,585) | ¥ 217,715,406 |
Net income (loss) per ordinary share | ||||
-Basic | (per share) | ¥ (1.73) | $ (0.24) | ¥ (0.32) | ¥ 1.47 |
-Diluted | (per share) | ¥ (1.73) | $ (0.24) | ¥ (0.32) | ¥ 1.41 |
Weighted average number of ordinary shares and ordinary shares equivalents outstanding used in computing net income (loss) per ordinary share | ||||
-Basic | 156,816,105 | 156,816,105 | 155,176,922 | 153,672,358 |
-Diluted | 156,816,105 | 156,816,105 | 155,176,922 | 160,460,976 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Allowance for doubtful accounts | ¥ 139,445,017 | ¥ 25,044,327 | ¥ 1,272,454 | |
Foreign currency translation adjustment, income tax | 0 | 0 | 0 | ¥ 0 |
Unrealized gain on available for sale securities, income tax | 3,080 | 1,184,686 | 5,809,288 | |
Reclassification adjustment for gain on available for sale securities realized in net income, income tax | ¥ 64,025 | ¥ 1,698,460 | ¥ 5,291,894 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Ordinary shares CNY (¥) shares | Ordinary shares USD ($) shares | Additional paid-in capital CNY (¥) | Additional paid-in capital USD ($) | Accumulated other comprehensive loss CNY (¥) | Accumulated other comprehensive loss USD ($) | Accumulated deficit CNY (¥) | Accumulated deficit USD ($) | CNY (¥) | USD ($) |
Beginning balance at Dec. 31, 2020 | ¥ 98,502 | ¥ 1,801,940,071 | ¥ (43,016,027) | ¥ (765,648,302) | ¥ 993,374,244 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | shares | 152,360,452 | 152,360,452 | ||||||||
Increase (decrease) in shareholders' deficit | ||||||||||
Net income (loss) | 225,820,409 | 225,820,409 | ||||||||
Foreign currency translation adjustment, net of nil income taxes | (9,657,187) | (9,657,187) | ||||||||
Unrealized holding gains on available-for-sale security, net of income taxes | 17,427,865 | 17,427,865 | ||||||||
Reclassification adjustment for gains on available-for-sale securities realized in net income, net of income taxes | (15,875,681) | (15,875,681) | ||||||||
Share-based compensation | 47,218,156 | 47,218,156 | ||||||||
Exercise of share-based awards | ¥ 852 | 6,245,532 | 6,246,384 | |||||||
Exercise of share-based awards (in shares) | shares | 1,320,378 | 1,320,378 | ||||||||
Ending balance at Dec. 31, 2021 | ¥ 99,354 | 1,855,403,759 | (51,121,030) | (539,827,893) | 1,264,554,190 | |||||
Ending balance (in shares) at Dec. 31, 2021 | shares | 153,680,830 | 153,680,830 | ||||||||
Increase (decrease) in shareholders' deficit | ||||||||||
Net income (loss) | (49,462,929) | (49,462,929) | ||||||||
Foreign currency translation adjustment, net of nil income taxes | 37,342,724 | 37,342,724 | ||||||||
Unrealized holding gains on available-for-sale security, net of income taxes | 6,460,896 | 6,460,896 | ||||||||
Reclassification adjustment for gains on available-for-sale securities realized in net income, net of income taxes | (9,219,276) | (9,219,276) | ||||||||
Share-based compensation | 58,219,186 | 58,219,186 | ||||||||
Exercise of share-based awards | ¥ 390 | 2,202,696 | 2,203,086 | |||||||
Exercise of share-based awards (in shares) | shares | 580,732 | 580,732 | ||||||||
Ending balance at Dec. 31, 2022 | ¥ 99,744 | 1,915,825,641 | (16,536,686) | (589,290,822) | 1,310,097,877 | |||||
Ending balance (in shares) at Dec. 31, 2022 | shares | 154,261,562 | 154,261,562 | ||||||||
Increase (decrease) in shareholders' deficit | ||||||||||
Net income (loss) | (271,835,982) | (271,835,982) | $ (38,287,297) | |||||||
Foreign currency translation adjustment, net of nil income taxes | 7,386,368 | 7,386,368 | 1,040,348 | |||||||
Unrealized holding gains on available-for-sale security, net of income taxes | 17,454 | 17,454 | 2,458 | |||||||
Reclassification adjustment for gains on available-for-sale securities realized in net income, net of income taxes | (362,810) | (362,810) | (51,100) | |||||||
Share-based compensation | 47,659,304 | 47,659,304 | ||||||||
Exercise of share-based awards | ¥ 603 | 653,420 | 654,023 | |||||||
Exercise of share-based awards (in shares) | shares | 855,468 | 855,468 | ||||||||
Ending balance at Dec. 31, 2023 | ¥ 100,347 | $ 14,134 | ¥ 1,964,138,365 | $ 276,643,103 | ¥ (9,495,674) | $ (1,337,438) | ¥ (861,126,804) | $ (121,287,174) | ¥ 1,093,616,234 | $ 154,032,625 |
Ending balance (in shares) at Dec. 31, 2023 | shares | 155,117,030 | 155,117,030 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||
Foreign currency translation adjustment, income tax | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 |
Unrealized holding gains on available-for-sale security, income taxes | 3,080 | 1,184,686 | 5,809,288 | |
Reclassification adjustment for gains on available-for-sale securities realized in net income, income tax | ¥ 64,025 | ¥ 1,698,460 | ¥ 5,291,894 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Operating activities: | ||||
Net income (loss) | ¥ (271,835,982) | $ (38,287,297) | ¥ (49,462,929) | ¥ 225,820,409 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||
Allowance for doubtful accounts (Note 4) | 139,445,017 | 19,640,420 | 25,044,327 | 1,272,454 |
Share-based compensation (Note 15) | 47,659,304 | 6,712,673 | 58,219,186 | 47,218,156 |
Depreciation and amortization (Note 7 and 8) | 148,064,759 | 20,854,485 | 142,711,409 | 95,473,048 |
Reduction in the carrying amount of right-of-use assets | 8,303,344 | 1,169,502 | 8,525,547 | 10,730,213 |
Investment income | (1,426,370) | (200,900) | (10,917,736) | (21,167,575) |
Unrealized foreign exchange loss (gain) | (4,557,547) | (641,917) | (7,508,084) | 1,882,626 |
Deferred income tax expense (benefit) | (10,952,309) | (1,542,600) | (6,079,533) | 4,321,601 |
Loss on disposal of property, plant and equipment | 22,077 | 3,109 | 478,457 | 235,581 |
Write-down of inventories (Note 5) | 21,681,652 | 3,053,797 | 8,991,793 | 3,679,669 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 65,371,286 | 9,207,353 | (56,145,868) | (168,520,346) |
Inventories | 2,627,537 | 370,081 | (156,107,463) | (131,185,130) |
Prepayments and other current assets | (5,062,337) | (713,015) | (125,888,562) | (24,763,588) |
Other non-current assets | 6,269,554 | 883,048 | (1,834,238) | 1,520,050 |
Accounts payable and notes payable | (33,303,059) | (4,690,638) | 93,747,996 | 286,726,602 |
Advances from customers | (5,657,752) | (796,878) | 7,545,887 | (22,764,635) |
Deferred revenue | 5,953,975 | 838,600 | 5,517,801 | 18,119,340 |
Other non-current liabilities | (1,280,068) | (180,294) | (9,365,449) | (4,374,815) |
Income tax receivable | 13,340,152 | 1,878,921 | (13,349,602) | |
Income taxes payable | (540,152) | (76,079) | (15,703,460) | 3,046,431 |
Accrued expenses and other current liabilities | (21,922,192) | (3,087,676) | (13,056,147) | 15,256,165 |
Operating lease liabilities | (8,465,797) | (1,192,383) | (7,219,675) | (8,351,554) |
Net cash provided by (used in) operating activities | 93,735,092 | 13,202,312 | (121,856,343) | 334,174,702 |
Investing activities: | ||||
Cash paid for purchase of property, plant and equipment | (78,934,562) | (11,117,701) | (135,349,387) | (285,745,233) |
Purchase of term deposits | (379,419,347) | (53,440,096) | (635,470,550) | (357,162,950) |
Cash received from redemption of term deposits | 513,238,247 | 72,288,095 | 551,794,100 | 353,295,700 |
Cash paid for purchase of short-term investments | (420,000,000) | (59,155,763) | (2,593,000,000) | (6,032,000,000) |
Cash received from sale of short-term investments | 581,426,370 | 81,892,191 | 3,213,917,736 | 6,027,167,575 |
Prepayment for an investment | (4,000,000) | |||
Others | (614,066) | |||
Net cash (used in) provided by investing activities | 216,310,708 | 30,466,726 | 397,891,899 | (295,058,974) |
Financing activities: | ||||
Cash received from exercise of employee stock options | 654,023 | 92,117 | 2,203,086 | 6,246,384 |
Proceeds from short-term bank borrowings | 100,000,000 | 14,084,705 | 340,000,000 | 340,000,000 |
Repayment for short-term bank borrowings | (160,000,000) | (22,535,528) | (360,000,000) | (340,000,000) |
Net cash provided by (used in) financing activities | (59,345,977) | (8,358,706) | (17,796,914) | 6,246,384 |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | 8,913,200 | 1,255,398 | 30,043,572 | (8,490,370) |
Net increase in cash, cash equivalents and restricted cash | 259,613,023 | 36,565,730 | 288,282,214 | 36,871,742 |
Cash, cash equivalents and restricted cash at the beginning of the year | 720,627,170 | 101,498,214 | 432,344,956 | 395,473,214 |
Cash, cash equivalents and restricted cash at the end of the year | 980,240,193 | 138,063,944 | 720,627,170 | 432,344,956 |
Supplemental information | ||||
Interest paid | 1,616,253 | 227,645 | 5,711,056 | 6,346,189 |
Income tax paid | 1,066,182 | 150,169 | 13,374,909 | 39,668,576 |
Construction payable | ¥ 13,441,923 | $ 1,893,255 | 7,522,480 | ¥ 11,279,464 |
Prepayment for a service in previous year to purchase of an investment | ¥ 3,000,000 |
DESCRIPTION OF ORGANIZATION AND
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
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 electric scooters and its accessories and spare parts under the brand name of “NIU”. The Group’s principal operations and geographic markets are primarily 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 Based on the opinion of the Company’s PRC legal counsel, the management believes 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 the 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, 2022 and 2023, and consolidated revenues, net income (loss) and cash flow information for the years ended December 31, 2022, 2022 and 2023, 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, 2022 2023 RMB RMB Cash 493,570,803 620,484,535 Term deposits-current — 20,000,000 Restricted cash 6,229,605 145,000 Short-term investments 160,406,301 — Accounts receivable, net 298,732,239 91,975,054 Inventories 411,954,893 386,966,973 Prepayments and other current assets 187,576,865 177,957,171 Amounts due from inter-companies 24,251,018 44,220,970 Total current assets 1,582,721,724 1,341,749,703 Term deposits-non-current 20,000,000 — Property, plant and equipment, net 394,621,585 321,213,398 Intangible assets, net 1,317,785 1,102,870 Operating lease right-of-use assets 86,597,121 76,821,285 Deferred income tax assets 6,132,499 20,747,021 Other non-current assets 5,677,414 6,720,608 Total assets 2,097,068,128 1,768,354,885 Short-term bank borrowings 160,000,000 100,000,000 Notes payable 316,832,113 167,282,688 Accounts payable 459,406,790 575,235,413 Amounts due to inter-companies 476,120,909 467,282,009 Income taxes payable 1,501,992 1,195,114 Advances from customers 23,522,149 16,399,926 Deferred revenue—current 37,539,733 41,755,097 Accrued expenses and other current liabilities 175,352,229 151,286,008 Total current liabilities 1,650,275,915 1,520,436,255 Deferred revenue-non-current 11,429,500 13,168,111 Deferred income tax liabilities 1,398,279 2,362,494 Operating lease liabilities 7,569,128 280,421 Other non-current liabilities 13,441,382 8,968,519 Total liabilities 1,684,114,204 1,545,215,800 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Revenues 3,768,134,434 3,187,989,945 2,645,570,002 Net income (loss) 213,848,471 (9,347,980) (236,441,380) Net cash provided by (used in) operating activities 354,675,219 (74,417,318) 93,727,586 Net cash (used in) provided by investing activities (329,808,349) 455,930,283 82,502,334 Net cash used in financing activities — (20,000,000) (60,000,000) Effect of foreign currency exchange rate changes on cash and restricted cash (422,991) 7,993,970 4,599,207 Net increase in cash and restricted cash 24,443,879 369,506,935 120,829,127 Cash and restricted cash at the beginning of the year 105,849,594 130,293,473 499,800,408 Cash and restricted cash at the end of the year 130,293,473 499,800,408 620,629,535 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 the VIE. None of the assets of the VIE and its subsidiaries has been pledged or collateralized, except for the restricted cash as of December 31, 2022. The creditors of the VIE and its subsidiaries do not have recourse to the general credit of the Company or its consolidated subsidiaries, except for the restricted cash of the Company which was pledged as collateral for the short -term bank borrowings. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
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, depreciable lives of property, plant and equipment and intangible assets, the realization of deferred income tax assets, future warranty expenses, current expected credit loss and discount rate for operating leases. Changes in facts and circumstances may result in revising 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, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999, representing the noon buying rate in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 29, 2023, or at any other rate. The US$ convenience translation is not required under U.S. GAAP and all US$convenience translation amounts in the accompanying consolidated financial statements are unaudited. (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 and cash equivalents Cash consists of cash on hand and cash at bank. Cash equivalents represent term deposits with original maturities of three months or less, which are readily convertible to known amounts of cash. Cash and cash equivalents are deposited in financial institutions at the following locations: As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland of the PRC —Denominated in EUR 5,986,595 18,233,516 —Denominated in RMB 278,917,866 334,796,621 —Denominated in GPB 244,790 504,471 —Denominated in USD 220,296,524 499,117,291 Total cash and cash equivalents balances held at mainland PRC financial institutions 505,445,775 852,651,899 Financial institutions in the United States —Denominated in USD 10,087,973 691,290 Total cash balances held at United States financial institutions 10,087,973 691,290 Financial institutions in the Hong Kong S.A.R. —Denominated in HKD 78,206 79,213 —Denominated in USD 14,631,590 11,477,109 Total cash balances held at Hong Kong S.A.R. financial institutions 14,709,796 11,556,322 Total cash balances held at financial institutions in other locations 3,453,514 7,203,416 Total cash and cash equivalents balances held at financial institutions 533,697,058 872,102,927 (g) Term deposits Term deposits include current and non-current term deposits. Current term deposits represent deposits placed with bank with original maturities of more than three months but less than one year. Non-current term deposits represent deposits placed with bank with original maturities of more than one year. Term deposits are presented in the following table: As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 20,000,000 20,000,000 —Denominated in USD 208,589,770 77,555,565 Total term deposits held 228,589,770 97,555,565 Term deposits—current 208,589,770 97,555,565 Term deposits—non-current 20,000,000 — (h) Restricted cash Restricted cash is an amount of cash deposited with banks primarily in conjunction with borrowings from banks and notes payable. 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 and notes payable. Restricted cash is classified as current asset on the Company’s consolidated balance sheets, as all the balance are expected to be released to cash within the next twelve months from December 31, 2023. The Group’s restricted cash are denominated in RMB and USD and are deposited at financial institutions in the mainland of the PRC. The following table provides a reconciliation of cash and cash equivalents 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, 2022 2023 RMB RMB Cash and cash equivalents 534,286,849 872,573,460 Restricted cash 186,340,321 107,666,733 Total cash, cash equivalents and restricted cash 720,627,170 980,240,193 (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 or have the original maturities of less than twelve months. The Group classified the short-term investments, with aggregate amounts of RMB6,032,000,000 and RMB2,593,000,000 purchased for the year ended December 31, 2021 and 2022, respectively, as available-for-sale securities and are reported at fair value. Unrealized holding gains or losses, net of the related tax effect, on available-for-sale securities were 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. The Group purchased short-term investments with aggregate amounts of RMB420,000,000 for the year ended December 31, 2023, and elected the fair value option at the date of initial recognition in accordance with Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments, (j) Inventories Inventories, consisting of raw materials, work in progress and finished goods, 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. Costs incurred in the construction of property, plant and equipment, including down payments and progress payments, are initially capitalized as construction in progress and transferred into their respective asset categories when the assets are ready for their intended use, at which time depreciation commences. The estimated useful lives are as follows: Estimated useful lives Building 50 years Machinery and equipment 3 Furniture 3 Leasehold improvements The shorter of the estimated useful life or remaining lease term Office and electronic equipment 2 Motor vehicles 3 - 4 years Depreciation on property, plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Depreciation 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, net 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) Leases The Group adopted ASC Topic 842, Leases The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use asset and a lease liability based on the present value of the lease payments over the lease term, reduced by lease incentives received, plus any initial direct costs, using the discount rate for the lease at the commencement date. Variable lease payments not dependent on an index or rate are excluded from the right-of-use asset and lease liability calculations and are recognized in expense in the period which the obligation for those payments is incurred. As the rate implicit in the Group’s lease is not typically readily available, the Group uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Group could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. The Group’s lease terms may include options to extend or terminate the lease. Such options are accounted for only when it is reasonably certain that the Group will exercise the options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. From time to time, the Group purchases the rights to use government-owned land for a fixed period of time. Prior to the adoption of ASC 842, these land use rights were recorded at cost less accumulated amortization and any accumulated impairment losses in land use right, net in the consolidated balance sheets. 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 rights certificate. Upon the adoption of ASC 842 on January 1, 2021, land use rights acquired assessed in accordance with ASC 842 and recognized in operating right-of-use assets if they meet the definition of lease. (n) Impairment of long-lived assets Long-lived assets such as property, plant and equipment, intangible assets and operating lease right-of-use assets 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 with 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, 2021, 2022 and 2023. (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 13%. 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, 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 and cash equivalents, term deposits, restricted cash, short-term investments, accounts receivable, other receivables, short-term bank borrowings, notes payable, accounts payable, and other payables. The Group measures short-term investments at fair value on a recurring basis. Short-term investments include financial products issued by financial institutions, which are valued based on prices per unit quoted by issuers. They are categorized in Level 2 of the fair value hierarchy. As of December 31, 2022 and 2023, the carrying values of other financial instruments approximated to their fair values as their interest rates are comparable to the prevailing interest rates in the market. The Group’s non-financial assets, such as property, plant and equipment, intangible assets and operating lease right-of-use assets, 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 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. 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. To achieve that core principle, the Group applies the five steps defined under Accounting Standards Codification 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 stand-alone selling price (“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 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 overseas offline distributors for oversea sales, acceptance of the products by overseas offline distributors is evidenced by shipping documents dependent upon the terms of the underlying contract. 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 up to 30 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, 2021, 2022 and 2023. 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 included in our inventory and recognized as cost of revenue upon sale of products to overseas offline distributors and individual customers. Shipping costs incurred for sales of products and recognized as cost of revenues were RMB49,456,660, RMB101,970,407 and RMB52,541,201 for the years ended December 31, 2021, 2022 and 2023, 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 Such revenue arrangements are divided into separate distinct performance obligations, including electric scooters and mobile application services. The Group determines the SSP for electric scooters and mobile application services based on their relative selling prices. 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 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 disclose the remaining performance obligations of contracts that have an original duration of one year or less. As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was RMB74,227,696. Given the profile of contract terms, RMB61,059,585 of the remaining performance obligation is expected to be recognized as revenue within the next 12 months and RMB13,168,111 is expected to be recognized as revenue between next 12 (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 accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Group adopted Accounting Standards Codification Topic (“ASU”) No.2016-13, Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments 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. Changes in the Group’s contract liabilities (advances from customers and deferred revenue) are presented in the following table for the years ended December 31, 2022 and 2023: Contract liabilities as of January 1, 2022 60,718,426 Cash received in advance, excluding VAT 2,852,443,422 Revenue recognized from opening balance of contract liabilities (50,024,734) Revenue recognized from contract liabilities arising during 2022 (2,789,235,984) Contract liabilities as of December 31, 2022 73,901,130 Cash received in advance, excluding VAT 2,118,016,702 Revenue recognized from opening balance of contract liabilities (62,471,630) Revenue recognized from contract liabilities arising during 2023 (2,055,218,506) Contract liabilities as of December 31, 2023 74,227,696 (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 during the reported 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. (t) Cost of Revenues Cost of revenues mainly consists of the cost of products sold, logistics costs, write-downs of inventories and warranty costs. (u) Selling and Marketing Expenses Selling and marketing expenses mainly consist of advertising expenses, 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 RMB160,415,978, RMB191,776,905 and RMB177,824,898 for the years ended December 31, 2021, 2022 and 2023, respectively. (v) General and Administrative Expenses General and administrative expenses mainly consist of allowance for doubtful accounts, payroll and related costs for employees involved in general corporate functions, professional fees, foreign currency exchange gains (losses) and other general corporate expenses, as well as expenses associated with the use by these functions of facilities and equipment, such as depreciation and rental 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, design and development expenses, and expenses associated with the use by these functions of facilities and equipment, such as depreciation and rental expenses. Research and development expenses are expensed as incurred. (x) Government Grants Government grants are recognized when there is reasonable assurance that the Group will comply with the conditions attached to it and the grant will be received. Grants that compensate the Group for expenses incurred are recognized in the Group’s consolidated statements of comprehensive income (loss) on a systematic basis in the same periods in which the expenses are incurred. Grants that compensate the acquisition cost of an asset are recorded as a liability in the Group’s consolidated balance sheets and are recognized in the Group’s consolidated statements of comprehensive income (loss) over the useful life of the asset. As of December 31, 2022 and 2023, nil of liability was related to the government grants that compensate the acquisition cost of an asset. The Group’s government grants mainly consist of certain subsidies or tax refund from local government or industrial parks where its offices locate. For the years ended December 31, 2021, 2022 and 2023, RMB48,726,818, RMB16,385,038 and RMB2,968,735 of government grants are recognized in the consolidated statements of comprehensive income (loss), respectively. There were no significant commitment, contingencies or provision for recapture conditions for the government grants received for the years ended December 31, 2021, 2022 and 2023. (y) Share-based Compensation The Company periodically grants share-based awards, including but not limited to, 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. 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 share units is measured based on the fair value of the Company’s ordinary shares at the grant date of the award. The fair value is the closing prices of the Company’s ordinary shares 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 (estimated based on the historical volatility of the Compan |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 3. SHORT-TERM INVESTMENTS Short-term investments consisted of the following: As of December 31, 2022 2023 RMB RMB Aggregate cost basis 160,000,000 — Gross unrealized holding gain 406,301 — Aggregate fair value 160,406,301 — 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, 2022 and 2023, there were no gross unrealized holding losses. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 4. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: As of December 31, 2022 2023 RMB RMB Accounts receivable 329,336,616 263,994,880 Allowance for doubtful accounts (29,593,693) (169,038,710) Accounts receivable, net 299,742,923 94,956,170 The movement of the allowance for doubtful accounts was as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Balance at the beginning of the year 3,307,381 4,549,366 29,593,693 Additions 1,272,454 25,044,327 139,445,017 Write-off (30,469) — — Balance at the end of the year 4,549,366 29,593,693 169,038,710 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
INVENTORIES | 5. INVENTORIES Inventories consisted of the following: As of December 31, 2022 2023 RMB RMB Finished goods 267,036,620 244,373,815 Works in progress 69,290 6,925 Raw materials 149,903,238 148,409,401 Inventories 417,009,148 392,790,141 Write-downs of inventories from the carrying amount to its estimated net realizable value amounted to RMB3,679,669, RMB8,991,793 and RMB21,681,652 were made for the years ended December 31, 2021, 2022 and 2023, respectively, and were recorded as cost of revenues. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 2023 RMB RMB Deductible input VAT and VAT rebates receivable 104,391,993 123,335,099 Prepayments to suppliers 54,722,157 35,692,402 Receivable from online platforms 11,555,500 12,258,397 Deferred charge 14,359,452 11,722,400 Interest receivable 1,916,240 7,357,967 Income tax receivable 13,349,602 9,450 Others* 5,400,773 4,696,414 Prepayments and other current assets 205,695,717 195,072,129 * Others mainly include deposits receivable. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 2023 RMB RMB Furniture 380,987,667 375,782,740 Machinery and equipment 135,365,960 173,869,199 Building 148,449,403 149,465,476 Office and electronic equipment 31,868,495 33,252,080 Leasehold improvement 10,778,718 10,792,479 Motor vehicles 3,811,160 3,811,160 Property, plant and equipment 711,261,403 746,973,134 Less: Accumulated depreciation (313,904,608) (423,860,768) Property, plant and equipment, net 397,356,795 323,112,366 Depreciation expense on property, plant and equipment was allocated to the following expense items: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 19,702,392 23,554,266 26,811,275 General and administrative expenses 7,856,968 8,113,535 9,057,825 Selling and marketing expenses 62,949,248 104,721,594 107,996,726 Research and development expenses 3,092,290 4,381,707 3,641,514 Total depreciation expense 93,600,898 140,771,102 147,507,340 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: As of December 31, 2022 Gross Net Amortization carrying Accumulated carrying RMB period amount amortization amount Trademarks 5-10 years 8,983,153 (8,503,451) 479,702 Domain name 5-10 years 3,820,913 (3,618,766) 202,147 License 10 years 1,943,396 (767,925) 1,175,471 Total 14,747,462 (12,890,142) 1,857,320 As of December 31, 2023 Gross Net Amortization carrying Accumulated carrying RMB period amount amortization amount Trademarks 5 9,130,529 (8,976,570) 153,959 Domain name 5 3,826,626 (3,655,316) 171,310 License 10 years 1,943,396 (962,264) 981,132 Total 14,900,551 (13,594,150) 1,306,401 Amortization expense on intangible assets was allocated to the following expense items: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 194,340 194,340 194,340 General and administrative expenses 1,677,810 1,745,967 363,079 Total amortization expense 1,872,150 1,940,307 557,419 As of December 31, 2023, estimated amortization expense of the existing intangible assets for each of the next five years is RMB264,453, RMB264,453, RMB250,275, RMB248,986 and RMB248,986. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 9. OTHER NON-CURRENT ASSETS Other non-current assets consisted of the following: As of December 31, 2022 2023 RMB RMB Prepayment for an investment 7,000,000 — Deposits 2,376,350 2,728,406 Prepayment for property, plant and equipment 1,914,411 2,231,253 Others 1,392,329 1,770,719 Other non-current assets 12,683,090 6,730,378 |
SHORT-TERM BANK BORROWINGS
SHORT-TERM BANK BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM BANK BORROWINGS | |
SHORT-TERM BANK BORROWINGS | 10. SHORT-TERM BANK BORROWINGS As of December 31, 2022 2023 RMB RMB Secured borrowing 160,000,000 100,000,000 In July 2021, a commercial bank in the PRC provided the Group with a ten-month one-year In June 2021, the Group entered into a two-year In March 2023, the Group entered into a twelve-months As of December 31, 2022 and 2023, the outstanding short-term bank borrowings bore a weighted average interest rate of 3.0% and 3.2% per annum, respectively, and were denominated in RMB. These loans were obtained from financial institutions located in the PRC. As of December 31, 2022 and 2023, unused secured loan facility amounted to nil and RMB60,000,000, respectively. |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
NOTES PAYABLE | |
NOTES PAYABLE | 11. NOTES PAYABLE In December 2021, the Group entered into a twelve-month loan facility agreement with a commercial bank in the PRC. Pursuant to this agreement, the Group was entitled to borrow a short-term bank borrowing and notes payable of up to RMB200,000,000. In April 2022, the Group entered into a twelve-month revolving loan facility agreement with a commercial bank in the PRC, and was entitled to extend maturity date to April 2024. Pursuant to this agreement, the Group was entitled to borrow a short-term bank borrowing and notes payable of up to RMB300,000,000. As of December 31, 2022 and 2023, notes payable represent non-interest-bearing bank acceptance notes issued by the Group to suppliers that are due within twelve months. As of December 31, 2022 and 2023, unused loan facility amounted to RMB183,167,887 and RMB132,717,312, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2022 2023 RMB RMB Refundable payment from franchised stores—current 41,735,515 39,203,959 Accrued selling and marketing expenses 8,506,658 29,159,625 Accrued payroll and social insurance 28,508,469 17,566,486 Warranty—current 24,797,169 16,736,341 Construction payable 16,512,545 14,372,306 Operating lease liabilities—current (Note 20) 7,743,648 5,094,066 Sales rebate 13,878,273 4,975,640 Other taxes payable 18,813,540 3,542,993 Interest payable 280,000 87,671 Others* 31,317,126 34,772,309 Accrued expenses and other current liabilities 192,092,943 165,511,396 * Others mainly include accrued professional fees and other general corporate expenses. The Group provides limited warranty to its end customers for terms varying from 6 months to 36 months, subject to certain conditions, such as normal use. For certain key components of electric scooter, the Group provides quality warranty varying from 12 months to 24 months. For lithium-ion battery packs, the Group provides a 24 36 Movement of provision for warranty was as follows: For the Year Ended December 31, 2021 2022 2023 Accrued warranty—beginning of year 59,195,896 47,788,122 33,812,290 Accrual for warranties issued during the year 35,181,557 20,355,810 23,248,155 Warranty claims paid (22,554,689) (23,894,070) (30,051,582) Pre-existing warranty expired (24,034,642) (10,437,572) (1,683,024) Accrued warranty—end of year 47,788,122 33,812,290 25,325,839 |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
OTHER NON-CURRENT LIABILITIES | |
OTHER NON-CURRENT LIABILITIES | 13. OTHER NON-CURRENT LIABILITIES Other non-current liabilities consisted of the following: As of December 31, 2022 2023 RMB RMB Warranty—non-current 9,015,121 8,589,498 Refundable payment from franchised stores—non-current 1,233,466 379,021 Others 3,192,795 — Other non-current liabilities 13,441,382 8,968,519 |
ORDINARY SHARE
ORDINARY SHARE | 12 Months Ended |
Dec. 31, 2023 | |
ORDINARY SHARE | |
ORDINARY SHARE | 14. ORDINARY SHARE The Company’s authorized share capital is 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 Memorandum and Articles of Association. 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 May 17, 2021, a Class B ordinary shareholder converted 1,440,000 Class B ordinary shares to Class A ordinary shares. As of December 31, 2022, there were 137,719,542 Class A ordinary shares and 16,542,020 Class B ordinary shares outstanding. As of December 31, 2023, there were 138,575,010 Class A ordinary shares and 16,542,020 Class B ordinary shares outstanding. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 15. SHARE-BASED COMPENSATION Share options and restricted share units a) 2016 Global Share 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. 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. The Board of Directors has approved annual increases of 2,285,407, 2,305,212 and 2,313,923 ordinary shares for the years ended December 31, 2021, 2022 and 2023, representing 1.5% of total issued and outstanding shares as of December 31, 2020, 2021 and 2022, respectively, pursuant to the 2018 Share Incentive Plan. A summary of the share options activities under the Amended 2016 Plan and the 2018 Plan for the year ended December 31, 2023 was presented below: Weighted Weighted average remaining Aggregate Number of exercise contractual intrinsic shares price years value US$ US$ Outstanding at January 1, 2023 4,414,608 2.11 — — Exercised (464,300) 0.20 — — Forfeited/Expired (7,250) 0.20 — — Outstanding at December 31, 2023 3,943,058 2.34 4.56 1,190,466 Exercisable as of December 31, 2023 3,943,058 2.34 4.56 1,190,466 Compensation expenses recognized for share options for the years ended December 31, 2021, 2022 and 2023 were allocated to the following expense items: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 8,318 — — Selling and marketing expenses 2,235,102 1,936,414 905,764 Research and development expenses 4,018,126 3,862,189 2,191,242 General and administrative expenses 6,649,255 5,008,382 3,047,542 Total share options compensation expenses 12,910,801 10,806,985 6,144,548 No share options had been granted for the years ended December 31, 2021, 2022 and 2023. The total intrinsic value of share options exercised for the years ended December 31, 2021, 2022 and 2023, were RMB77,271,754, RMB3,708,615 and RMB4,799,425, respectively. The total fair value of shares vested for the years ended December 31, 2021, 2022 and 2023 were RMB15,732,201, RMB10,976,490 and RMB11,027,023, respectively. As of December 31, 2023, total unrecognized compensation expense related to share options was nil. A summary of the restricted share units activities for the year ended December 31, 2023 was presented below: Weighted average grant Number of date fair shares value US$ Unvested as of January 1, 2023 3,890,658 4.59 Granted 232,000 2.31 Vested (1,507,862) 4.44 Forfeited (611,722) 4.30 Unvested as of December 31, 2023 2,003,074 4.53 The restricted share units are generally scheduled to be vested over four equal annual installments, except 128,000 restricted share units were granted in 2022 with vesting in two equal annual installments under the 2018 Plan. For the year ended December 31, 2023, 232,000 restricted share units were granted with vesting in four equal annual installments. Compensation expenses recognized for restricted share units for the years ended December 31, 2021, 2022 and 2023 were allocated to the following expense items: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 838,515 1,224,796 1,237,902 Selling and marketing expenses 11,057,530 13,497,270 9,085,924 Research and development expenses 13,043,898 18,499,553 19,462,704 General and administrative expenses 9,367,412 14,190,582 11,728,226 Total restricted share units compensation expenses 34,307,355 47,412,201 41,514,756 As of December 31, 2023, RMB48,330,116 of total unrecognized compensation expense related to restricted share units was expected to be recognized over a weighted average period of approximately 1.92 years. Total share-based compensation expenses recognized for the years ended December 31, 2021, 2022 and 2023 were allocated to the following expense items: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 846,833 1,224,796 1,237,902 Selling and marketing expenses 13,292,632 15,433,684 9,991,688 Research and development expenses 17,062,024 22,361,742 21,653,946 General and administrative expenses 16,016,667 19,198,964 14,775,768 Total share-based compensation expense 47,218,156 58,219,186 47,659,304 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 16. FAIR VALUE MEASUREMENT The following tables presents the fair value hierarchy for those assets measured at fair value on a recurring basis as of December 31, 2022: December 31, 2022 Total RMB Level 1 Level 2 Level 3 Fair Value Short-term investments (Note 3) — 160,406,301 — 160,406,301 There was no financial assets and liabilities measured at fair value as of December 31, 2023. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAX | |
INCOME TAX | 17. 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. United States Under the current U.S. federal corporate income tax, the Company’s subsidiary in United States are subject to 21% income tax on its taxable income generated from operations in United States. The company’s subsidiaries have no taxable income for all periods presented. British Virgin Islands Under the current laws of the British Virgin Islands (“B.V.I.”), entities incorporated in the B.V.I. are not subject to tax on their income or capital gains. 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 mainland China subsidiaries, the VIE, and VIE’s subsidiaries are subject to the PRC Corporate Income Tax Law (“CIT Law”), and are generally subject to a statutory income tax rate of 25%. Under the CIT Law, preferential tax treatments will be granted to entities which conduct businesses in certain encouraged sectors and to entities otherwise classified as “High and New Technology Enterprises” (“HNTE”). Jiangsu Xiaoniu and Beijing Niudian were qualified as HNTEs and enjoy a preferential income tax rate of 15% for the fiscal years from 2021 to 2023 and 2022 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 income (loss) before income taxes are as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cayman (9,397,404) (10,448,513) (1,192,264) Indonesia (881,810) (984,230) (1,268,462) Hong Kong S.A.R. (6,700,069) (14,613,793) (7,930,644) B.V.I. — (278,774) (48,100) Others — — (840,681) PRC, excluding Hong Kong S.A.R. 289,836,300 (44,894,563) (270,748,715) Total 272,857,017 (71,219,873) (282,028,866) Income tax expense (benefit) consists of the following: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Current income tax expense (benefit) 42,715,007 (15,677,411) 759,425 Deferred income tax expense (benefit) 4,321,601 (6,079,533) (10,952,309) Total 47,036,608 (21,756,944) (10,192,884) 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 plans to indefinitely reinvest the undistributed earnings of the Group’s PRC entities, and therefore, no provision for PRC dividend withholding tax was accrued. Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2021, 2022 and 2023 are as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Computed expected income tax expense (benefit) 68,214,254 (17,804,968) (71,077,803) Non-PRC entities not subject to income tax 4,244,821 6,581,327 2,820,038 Research and development expenses bonus deduction (23,328,287) (34,910,421) (30,807,283) Non-deductible share-based compensation expenses 11,015,406 13,866,734 11,742,974 Other non-deductible expenses 723,768 638,898 2,491,593 Preferential tax rate difference — (3,075,033) 7,301,540 Tax filing differences 2,682,378 (3,770,720) 229,108 Change in valuation allowance (16,515,732) 16,717,239 67,106,949 Actual income tax expense (benefit) 47,036,608 (21,756,944) (10,192,884) Effect of preferential tax rates on basic earnings per Class A and Class B ordinary share — 0.02 (0.05) Effect of preferential tax rates on diluted earnings per Class A and Class B ordinary share — 0.02 (0.05) b) Deferred income tax assets and deferred income tax liabilities As of December 31, 2022 2023 RMB RMB Deferred income tax assets Net operating loss carry forwards 33,325,461 74,876,303 Accrued warranty 5,071,844 3,798,876 Advertising expense — 2,113,991 Deferred revenue 8,470,357 8,938,710 Allowance for doubtful accounts 7,037,684 41,878,340 Lease Liabilities 3,334,705 1,099,451 Write-downs for inventories 825,208 4,529,042 Less: Valuation allowance (40,764,285) (107,782,306) Total deferred income tax assets, net 17,300,974 29,452,407 Deferred income tax liabilities Operating lease right of use assets 3,334,705 1,099,451 Short-term investments 60,946 — Property, plant and equipment 9,171,103 9,968,429 Total deferred income tax liabilities 12,566,754 11,067,880 Net deferred income tax assets 6,132,499 20,747,021 Net deferred income tax liabilities 1,398,279 2,362,494 As of December 31, 2023, the Group had net operating loss carry forwards of RMB334,224,635 attributable to the PRC subsidiaries, the VIE and VIE’s subsidiaries. Tax losses of nil, RMB29,986,636, RMB21,713,526, RMB75,298,399 and RMB207,226,074 will expire, if unused, by 2024, 2025, 2026, 2027 and 2028, 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, 2022 and 2023 was primarily provided for the deferred income tax assets of certain 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, 2021 2022 2023 RMB RMB RMB Balance at the beginning of the year 41,219,052 24,508,473 40,764,285 Additions 5,567,822 25,114,239 68,593,841 Reduction (22,278,401) (8,858,427) (1,575,820) Balance at the end of the year 24,508,473 40,764,285 107,782,306 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 ten 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 2019 to 2023 are open to examination by the PRC tax authorities. |
NET INCOME (LOSS) PER ORDINARY
NET INCOME (LOSS) PER ORDINARY SHARE | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME (LOSS) PER ORDINARY SHARE | |
NET INCOME (LOSS) PER ORDINARY SHARE | 18. NET INCOME (LOSS) PER ORDINARY SHARE The following table sets forth the basic and diluted net income (loss) per ordinary share computation and provides a reconciliation of the numerator and denominator for the years presented: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Numerator: Net income (loss) 225,820,409 (49,462,929) (271,835,982) Denominator: Weighted average number of ordinary shares outstanding 153,174,715 154,109,051 154,795,461 Weighted average number of ordinary shares equivalents outstanding 497,643 1,067,871 2,020,644 Denominator for basic net income (loss) per ordinary share 153,672,358 155,176,922 156,816,105 Dilutive effect of outstanding share options 4,366,690 — — Dilutive effect of unvested restricted share units 2,421,928 — — Denominator for diluted net income (loss) per ordinary share 160,460,976 155,176,922 156,816,105 Net income (loss) per ordinary share —Basic 1.47 (0.32) (1.73) —Diluted 1.41 (0.32) (1.73) Securities that could potentially dilute basic net income (loss) per share in the future that were not included in the computation of diluted net income (loss) per share because to do so would have been antidilutive for the years ended December 31, 2022 and 2023 were as follow: For the Year Ended December 31, 2022 2023 Share options 4,414,608 3,943,058 Unvested restricted share units 3,890,658 2,003,074 |
REVENUE INFORMATION
REVENUE INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE INFORMATION | |
REVENUE INFORMATION | 19. REVENUE INFORMATION Revenues consisted of the following: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Electric scooter sales 3,252,988,512 2,853,895,423 2,358,658,368 Accessory and spare parts sales 397,088,122 242,296,734 197,634,073 Service revenues 54,460,785 72,405,177 95,465,205 Revenues 3,704,537,419 3,168,597,334 2,651,757,646 The following summarized the Group’s revenues from the following geographic areas (based on the location of customers): For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB PRC 3,158,966,932 2,583,843,616 2,247,593,239 Europe 430,201,301 343,157,877 151,521,237 Others 115,369,186 241,595,841 252,643,170 Revenues 3,704,537,419 3,168,597,334 2,651,757,646 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2023 | |
OPERATING LEASES | |
OPERATING LEASES | 20. OPERATING LEASES The Group leases its facilities and offices under non-cancelable operating lease agreements. For the years ended December 31, 2021, 2022 and 2023, the operating lease cost were RMB11,947,682, RMB9,352,700 and RMB7,549,026, respectively, and the short-term lease cost were RMB1,357,660, RMB847,735 and RMB1,480,259, respectively. There were no leasing costs other than operating lease costs or short-term lease costs. A summary of supplemental information related to operating leases as of December 31, 2022 and 2023 was as follows: As of December 31, 2022 2023 RMB RMB Operating lease right-of-use assets 86,597,121 76,821,285 Operating lease liabilities—current (Note 12) 7,743,648 5,094,066 Operating lease liabilities—non-current 7,569,128 280,421 Total operating lease liabilities 15,312,776 5,374,487 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cash paid for amounts included in the measurement of operating lease liabilities 9,569,023 8,046,828 7,711,479 Right-of-use assets obtained in exchange for new operating lease liabilities 10,201,553 921,405 3,744,607 Right-of-use assets obtained in exchange for prepayment for land use right 26,550,000 — — Modification to right-of-use assets (11,469,923) — (5,217,099) The weighted average remaining lease term as of December 31, 2023 was 1.1 years, and the weighted average discount rate of the operating leases was 3.92%. Maturities of lease liabilities under the Group’s non-cancellable operating leases as of December 31, 2023 were as follows: As of December 31, 2023 RMB Within 1 year 5,176,941 After 1 year but within 2 years 284,407 Total undiscounted lease payment 5,461,348 less: Imputed interest (86,861) Present value of lease liabilities 5,374,487 As of December 31, 2023, the Group has no significant lease contract that has been entered into but not yet commenced. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES The Group did not have any significant capital or other commitments or guarantees or contingencies as of December 31, 2022 and 2023. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 22. 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 (a) Condensed Balance Sheets As of December 31, 2022 2023 RMB RMB Assets Current assets Cash and cash equivalents 12,375,894 233,958,655 Term deposits-current 208,589,770 77,555,565 Restricted cash 176,204,380 107,521,733 Prepayments and other current assets 12,486,238 12,035,145 Total current assets 409,656,282 431,071,098 Non-current assets Investment in and amount due from subsidiaries, consolidated VIE and VIE’s subsidiaries 906,298,879 671,329,320 Other non-current assets 1,219 — Total assets 1,315,956,380 1,102,400,418 Liabilities Current liabilities Amount due to subsidiaries, consolidated VIE and VIE’s subsidiaries 4,262,270 4,564,315 Accrued expenses and other current liabilities 1,596,233 4,219,869 Total current liabilities and total liabilities 5,858,503 8,784,184 Shareholders’ equity: Class A ordinary shares 89,428 90,031 Class B ordinary shares 10,316 10,316 Additional paid-in capital 1,915,825,641 1,964,138,365 Accumulated other comprehensive loss (16,536,686) (9,495,674) Accumulated deficit (589,290,822) (861,126,804) Total shareholders’ equity 1,310,097,877 1,093,616,234 Total liabilities and shareholders’ equity 1,315,956,380 1,102,400,418 (b) Condensed Statements of Results of Operations For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Total operating expenses (11,441,931) (15,414,575) (17,739,201) Share of income (loss) from subsidiaries, consolidated VIE and VIE’s subsidiaries 235,264,719 (39,264,560) (270,498,551) Interest income 1,997,621 5,216,206 16,401,770 Income (loss) before income taxes 225,820,409 (49,462,929) (271,835,982) Income tax expense — — — Net income (loss) 225,820,409 (49,462,929) (271,835,982) (c) Condensed Statements of Cash Flows For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Net cash provided by (used in) operating activities 25,839,822 (23,565,305) 14,392,402 Net cash provided by (used in) investing activities 16,132,750 (95,940,040) 133,818,900 Net cash provided by financing activities 6,246,384 2,203,086 654,023 Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash (6,107,381) 21,972,182 4,034,789 Net increase (decrease) in cash, cash equivalents and restricted cash 42,111,575 (95,330,077) 152,900,114 Cash, cash equivalents and restricted cash at the beginning of the year 241,798,776 283,910,351 188,580,274 Cash, cash equivalents and restricted cash at the end of the year 283,910,351 188,580,274 341,480,388 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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, depreciable lives of property, plant and equipment and intangible assets, the realization of deferred income tax assets, future warranty expenses, current expected credit loss and discount rate for operating leases. Changes in facts and circumstances may result in revising 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, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999, representing the noon buying rate in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 29, 2023, or at any other rate. The US$ convenience translation is not required under U.S. GAAP and all US$convenience translation amounts in the accompanying consolidated financial statements are unaudited. |
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 and cash equivalents | (f) Cash and cash equivalents Cash consists of cash on hand and cash at bank. Cash equivalents represent term deposits with original maturities of three months or less, which are readily convertible to known amounts of cash. Cash and cash equivalents are deposited in financial institutions at the following locations: As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland of the PRC —Denominated in EUR 5,986,595 18,233,516 —Denominated in RMB 278,917,866 334,796,621 —Denominated in GPB 244,790 504,471 —Denominated in USD 220,296,524 499,117,291 Total cash and cash equivalents balances held at mainland PRC financial institutions 505,445,775 852,651,899 Financial institutions in the United States —Denominated in USD 10,087,973 691,290 Total cash balances held at United States financial institutions 10,087,973 691,290 Financial institutions in the Hong Kong S.A.R. —Denominated in HKD 78,206 79,213 —Denominated in USD 14,631,590 11,477,109 Total cash balances held at Hong Kong S.A.R. financial institutions 14,709,796 11,556,322 Total cash balances held at financial institutions in other locations 3,453,514 7,203,416 Total cash and cash equivalents balances held at financial institutions 533,697,058 872,102,927 |
Term deposits | (g) Term deposits Term deposits include current and non-current term deposits. Current term deposits represent deposits placed with bank with original maturities of more than three months but less than one year. Non-current term deposits represent deposits placed with bank with original maturities of more than one year. Term deposits are presented in the following table: As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 20,000,000 20,000,000 —Denominated in USD 208,589,770 77,555,565 Total term deposits held 228,589,770 97,555,565 Term deposits—current 208,589,770 97,555,565 Term deposits—non-current 20,000,000 — |
Restricted cash | (h) Restricted cash Restricted cash is an amount of cash deposited with banks primarily in conjunction with borrowings from banks and notes payable. 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 and notes payable. Restricted cash is classified as current asset on the Company’s consolidated balance sheets, as all the balance are expected to be released to cash within the next twelve months from December 31, 2023. The Group’s restricted cash are denominated in RMB and USD and are deposited at financial institutions in the mainland of the PRC. The following table provides a reconciliation of cash and cash equivalents 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, 2022 2023 RMB RMB Cash and cash equivalents 534,286,849 872,573,460 Restricted cash 186,340,321 107,666,733 Total cash, cash equivalents and restricted cash 720,627,170 980,240,193 |
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 or have the original maturities of less than twelve months. The Group classified the short-term investments, with aggregate amounts of RMB6,032,000,000 and RMB2,593,000,000 purchased for the year ended December 31, 2021 and 2022, respectively, as available-for-sale securities and are reported at fair value. Unrealized holding gains or losses, net of the related tax effect, on available-for-sale securities were 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. The Group purchased short-term investments with aggregate amounts of RMB420,000,000 for the year ended December 31, 2023, and elected the fair value option at the date of initial recognition in accordance with Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments, |
Inventories | (j) Inventories Inventories, consisting of raw materials, work in progress and finished goods, 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. Costs incurred in the construction of property, plant and equipment, including down payments and progress payments, are initially capitalized as construction in progress and transferred into their respective asset categories when the assets are ready for their intended use, at which time depreciation commences. The estimated useful lives are as follows: Estimated useful lives Building 50 years Machinery and equipment 3 Furniture 3 Leasehold improvements The shorter of the estimated useful life or remaining lease term Office and electronic equipment 2 Motor vehicles 3 - 4 years Depreciation on property, plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Depreciation 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, net | (l) Intangible assets, net 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. |
Leases | (m) Leases The Group adopted ASC Topic 842, Leases The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a right-of-use asset and a lease liability based on the present value of the lease payments over the lease term, reduced by lease incentives received, plus any initial direct costs, using the discount rate for the lease at the commencement date. Variable lease payments not dependent on an index or rate are excluded from the right-of-use asset and lease liability calculations and are recognized in expense in the period which the obligation for those payments is incurred. As the rate implicit in the Group’s lease is not typically readily available, the Group uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Group could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. The Group’s lease terms may include options to extend or terminate the lease. Such options are accounted for only when it is reasonably certain that the Group will exercise the options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. From time to time, the Group purchases the rights to use government-owned land for a fixed period of time. Prior to the adoption of ASC 842, these land use rights were recorded at cost less accumulated amortization and any accumulated impairment losses in land use right, net in the consolidated balance sheets. 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 rights certificate. Upon the adoption of ASC 842 on January 1, 2021, land use rights acquired assessed in accordance with ASC 842 and recognized in operating right-of-use assets if they meet the definition of lease. |
Impairment of long-lived assets | (n) Impairment of long-lived assets Long-lived assets such as property, plant and equipment, intangible assets and operating lease right-of-use assets 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 with 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, 2021, 2022 and 2023. |
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 13%. 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, 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 and cash equivalents, term deposits, restricted cash, short-term investments, accounts receivable, other receivables, short-term bank borrowings, notes payable, accounts payable, and other payables. The Group measures short-term investments at fair value on a recurring basis. Short-term investments include financial products issued by financial institutions, which are valued based on prices per unit quoted by issuers. They are categorized in Level 2 of the fair value hierarchy. As of December 31, 2022 and 2023, the carrying values of other financial instruments approximated to their fair values as their interest rates are comparable to the prevailing interest rates in the market. The Group’s non-financial assets, such as property, plant and equipment, intangible assets and operating lease right-of-use assets, 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 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. 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. To achieve that core principle, the Group applies the five steps defined under Accounting Standards Codification 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 stand-alone selling price (“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 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 overseas offline distributors for oversea sales, acceptance of the products by overseas offline distributors is evidenced by shipping documents dependent upon the terms of the underlying contract. 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 up to 30 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, 2021, 2022 and 2023. 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 included in our inventory and recognized as cost of revenue upon sale of products to overseas offline distributors and individual customers. Shipping costs incurred for sales of products and recognized as cost of revenues were RMB49,456,660, RMB101,970,407 and RMB52,541,201 for the years ended December 31, 2021, 2022 and 2023, 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 Such revenue arrangements are divided into separate distinct performance obligations, including electric scooters and mobile application services. The Group determines the SSP for electric scooters and mobile application services based on their relative selling prices. 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 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 disclose the remaining performance obligations of contracts that have an original duration of one year or less. As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was RMB74,227,696. Given the profile of contract terms, RMB61,059,585 of the remaining performance obligation is expected to be recognized as revenue within the next 12 months and RMB13,168,111 is expected to be recognized as revenue between next 12 |
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 accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Group adopted Accounting Standards Codification Topic (“ASU”) No.2016-13, Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments 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. Changes in the Group’s contract liabilities (advances from customers and deferred revenue) are presented in the following table for the years ended December 31, 2022 and 2023: Contract liabilities as of January 1, 2022 60,718,426 Cash received in advance, excluding VAT 2,852,443,422 Revenue recognized from opening balance of contract liabilities (50,024,734) Revenue recognized from contract liabilities arising during 2022 (2,789,235,984) Contract liabilities as of December 31, 2022 73,901,130 Cash received in advance, excluding VAT 2,118,016,702 Revenue recognized from opening balance of contract liabilities (62,471,630) Revenue recognized from contract liabilities arising during 2023 (2,055,218,506) Contract liabilities as of December 31, 2023 74,227,696 |
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 during the reported 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, logistics costs, write-downs of inventories and warranty costs. |
Selling and Marketing Expenses | (u) Selling and Marketing Expenses Selling and marketing expenses mainly consist of advertising expenses, 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 RMB160,415,978, RMB191,776,905 and RMB177,824,898 for the years ended December 31, 2021, 2022 and 2023, respectively. |
General and Administrative Expenses | (v) General and Administrative Expenses General and administrative expenses mainly consist of allowance for doubtful accounts, payroll and related costs for employees involved in general corporate functions, professional fees, foreign currency exchange gains (losses) and other general corporate expenses, as well as expenses associated with the use by these functions of facilities and equipment, such as depreciation and rental 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, design and development expenses, and expenses associated with the use by these functions of facilities and equipment, such as depreciation and rental expenses. Research and development expenses are expensed as incurred. |
Government Grants | (x) Government Grants Government grants are recognized when there is reasonable assurance that the Group will comply with the conditions attached to it and the grant will be received. Grants that compensate the Group for expenses incurred are recognized in the Group’s consolidated statements of comprehensive income (loss) on a systematic basis in the same periods in which the expenses are incurred. Grants that compensate the acquisition cost of an asset are recorded as a liability in the Group’s consolidated balance sheets and are recognized in the Group’s consolidated statements of comprehensive income (loss) over the useful life of the asset. As of December 31, 2022 and 2023, nil of liability was related to the government grants that compensate the acquisition cost of an asset. The Group’s government grants mainly consist of certain subsidies or tax refund from local government or industrial parks where its offices locate. For the years ended December 31, 2021, 2022 and 2023, RMB48,726,818, RMB16,385,038 and RMB2,968,735 of government grants are recognized in the consolidated statements of comprehensive income (loss), respectively. There were no significant commitment, contingencies or provision for recapture conditions for the government grants received for the years ended December 31, 2021, 2022 and 2023. |
Share-based Compensation | (y) Share-based Compensation The Company periodically grants share-based awards, including but not limited to, 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. 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 share units is measured based on the fair value of the Company’s ordinary shares at the grant date of the award. The fair value is the closing prices of the Company’s ordinary shares 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 (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), 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 revenues and expenses in the accompanying consolidated statements of comprehensive income (loss) amounted to RMB31,122,424, RMB42,637,403 and RMB42,376,447 for the years ended December 31, 2021, 2022 and 2023, 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 asset and 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. 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 income (loss) 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, 2022 and 2023, the Group did not have any significant unrecognized uncertain tax positions. |
Foreign currency translation and foreign currency risks | (bb) 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., the United States and Singapore is the United States dollars (“US$”). The functional currencies of the Company’s subsidiary incorporated in British Virgin Islands, Indonesia, Switzerland and Germany are Great Britain Pound (“GBP”), Indonesia Rupiah (“IDR”), Swiss Franc (“CHF”) and European Monetary Unit (“EUR”), respectively. 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 gains (losses) in the consolidated statements of comprehensive income (loss). The financial statements of the Company, its subsidiaries incorporated at Hong Kong S.A.R., the United States, Singapore, British Virgin Islands, Indonesia, Switzerland and Germany 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 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 in the consolidated statements of comprehensive income (loss) 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’ 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 | (cc) Concentration and risk Concentration of customers and suppliers The following tables summarized the customer with greater than 10% of the total revenue and accounts receivable: For the Year Ended December 31, 2021 2022 2023 RMB % RMB % RMB % Greater than 10% of the total revenue Customer A * * * * 319,208,693 12% As of December 31, 2022 2023 RMB % RMB % Greater than 10% of the accounts receivable Customer B 135,105,131 45% 90,892,779 34% Customer C * * 32,443,005 12% As of December 31, 2022 2023 RMB % RMB % Greater than 10% of advances from customers Customer D 2,787,482 11% 2,396,333 12% The following tables summarized the suppliers with greater than 10% of the total purchase: For the Year Ended December 31, 2021 2022 2023 RMB % RMB % RMB % Greater than 10% of total purchase Supplier X 298,264,146 12% 354,956,312 13% * * Supplier Y * * * * 286,132,811 16% No suppliers individually represent greater than 10% of accounts payable of the Group as of December 31, 2022 and 2023. * Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash and cash equivalents, term deposits, restricted cash, short-term investments and accounts receivable, net. The Group’s investment policy requires cash and cash equivalents, 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 | (dd) Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of ordinary shares 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. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders 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 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 (loss)per share calculation when inclusion of such shares would be anti-dilutive. |
Segment Reporting | (ee) 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 | (ff) 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, 2021, 2022 and 2023, the Group’s PRC subsidiaries made appropriations to the statutory reserves of RMB20,875,864, RMB42,654 and nil, respectively. |
Recent Accounting Pronouncements | (gg) Recent Accounting Pronouncements In November 2023, the Financial Accounting Standard Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. In addition, it provides new segment disclosure requirements for entities with a single reportable segment. The guidance will be effective for the Company for annual periods beginning January 1, 2024. Early adoption is permitted. The Company is currently evaluating the impact on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which requires disaggregated information about the effective tax rate reconciliation as well as information on income taxes paid. The guidance will be effective for the Company for annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact on its financial statement disclosures. |
DESCRIPTION OF ORGANIZATION A_2
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Schedule of Group's VIE information | As of December 31, 2022 2023 RMB RMB Cash 493,570,803 620,484,535 Term deposits-current — 20,000,000 Restricted cash 6,229,605 145,000 Short-term investments 160,406,301 — Accounts receivable, net 298,732,239 91,975,054 Inventories 411,954,893 386,966,973 Prepayments and other current assets 187,576,865 177,957,171 Amounts due from inter-companies 24,251,018 44,220,970 Total current assets 1,582,721,724 1,341,749,703 Term deposits-non-current 20,000,000 — Property, plant and equipment, net 394,621,585 321,213,398 Intangible assets, net 1,317,785 1,102,870 Operating lease right-of-use assets 86,597,121 76,821,285 Deferred income tax assets 6,132,499 20,747,021 Other non-current assets 5,677,414 6,720,608 Total assets 2,097,068,128 1,768,354,885 Short-term bank borrowings 160,000,000 100,000,000 Notes payable 316,832,113 167,282,688 Accounts payable 459,406,790 575,235,413 Amounts due to inter-companies 476,120,909 467,282,009 Income taxes payable 1,501,992 1,195,114 Advances from customers 23,522,149 16,399,926 Deferred revenue—current 37,539,733 41,755,097 Accrued expenses and other current liabilities 175,352,229 151,286,008 Total current liabilities 1,650,275,915 1,520,436,255 Deferred revenue-non-current 11,429,500 13,168,111 Deferred income tax liabilities 1,398,279 2,362,494 Operating lease liabilities 7,569,128 280,421 Other non-current liabilities 13,441,382 8,968,519 Total liabilities 1,684,114,204 1,545,215,800 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Revenues 3,768,134,434 3,187,989,945 2,645,570,002 Net income (loss) 213,848,471 (9,347,980) (236,441,380) Net cash provided by (used in) operating activities 354,675,219 (74,417,318) 93,727,586 Net cash (used in) provided by investing activities (329,808,349) 455,930,283 82,502,334 Net cash used in financing activities — (20,000,000) (60,000,000) Effect of foreign currency exchange rate changes on cash and restricted cash (422,991) 7,993,970 4,599,207 Net increase in cash and restricted cash 24,443,879 369,506,935 120,829,127 Cash and restricted cash at the beginning of the year 105,849,594 130,293,473 499,800,408 Cash and restricted cash at the end of the year 130,293,473 499,800,408 620,629,535 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of cash and cash equivalents | As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland of the PRC —Denominated in EUR 5,986,595 18,233,516 —Denominated in RMB 278,917,866 334,796,621 —Denominated in GPB 244,790 504,471 —Denominated in USD 220,296,524 499,117,291 Total cash and cash equivalents balances held at mainland PRC financial institutions 505,445,775 852,651,899 Financial institutions in the United States —Denominated in USD 10,087,973 691,290 Total cash balances held at United States financial institutions 10,087,973 691,290 Financial institutions in the Hong Kong S.A.R. —Denominated in HKD 78,206 79,213 —Denominated in USD 14,631,590 11,477,109 Total cash balances held at Hong Kong S.A.R. financial institutions 14,709,796 11,556,322 Total cash balances held at financial institutions in other locations 3,453,514 7,203,416 Total cash and cash equivalents balances held at financial institutions 533,697,058 872,102,927 |
Schedule of term deposits | As of December 31, 2022 2023 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 20,000,000 20,000,000 —Denominated in USD 208,589,770 77,555,565 Total term deposits held 228,589,770 97,555,565 Term deposits—current 208,589,770 97,555,565 Term deposits—non-current 20,000,000 — |
Schedule of cash and cash equivalents and restricted cash | As of December 31, 2022 2023 RMB RMB Cash and cash equivalents 534,286,849 872,573,460 Restricted cash 186,340,321 107,666,733 Total cash, cash equivalents and restricted cash 720,627,170 980,240,193 |
Schedule of estimated useful lives of property and equipment | Estimated useful lives Building 50 years Machinery and equipment 3 Furniture 3 Leasehold improvements The shorter of the estimated useful life or remaining lease term Office and electronic equipment 2 Motor vehicles 3 - 4 years |
Summary of changes in contract liabilities (advances from customers and deferred revenue) | Contract liabilities as of January 1, 2022 60,718,426 Cash received in advance, excluding VAT 2,852,443,422 Revenue recognized from opening balance of contract liabilities (50,024,734) Revenue recognized from contract liabilities arising during 2022 (2,789,235,984) Contract liabilities as of December 31, 2022 73,901,130 Cash received in advance, excluding VAT 2,118,016,702 Revenue recognized from opening balance of contract liabilities (62,471,630) Revenue recognized from contract liabilities arising during 2023 (2,055,218,506) Contract liabilities as of December 31, 2023 74,227,696 |
Summary of concentration of customers and suppliers | For the Year Ended December 31, 2021 2022 2023 RMB % RMB % RMB % Greater than 10% of the total revenue Customer A * * * * 319,208,693 12% As of December 31, 2022 2023 RMB % RMB % Greater than 10% of the accounts receivable Customer B 135,105,131 45% 90,892,779 34% Customer C * * 32,443,005 12% As of December 31, 2022 2023 RMB % RMB % Greater than 10% of advances from customers Customer D 2,787,482 11% 2,396,333 12% For the Year Ended December 31, 2021 2022 2023 RMB % RMB % RMB % Greater than 10% of total purchase Supplier X 298,264,146 12% 354,956,312 13% * * Supplier Y * * * * 286,132,811 16% |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM INVESTMENTS | |
Schedule of short-term investments | As of December 31, 2022 2023 RMB RMB Aggregate cost basis 160,000,000 — Gross unrealized holding gain 406,301 — Aggregate fair value 160,406,301 — |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivable, net | As of December 31, 2022 2023 RMB RMB Accounts receivable 329,336,616 263,994,880 Allowance for doubtful accounts (29,593,693) (169,038,710) Accounts receivable, net 299,742,923 94,956,170 |
Schedule of movement of the allowance for doubtful accounts | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Balance at the beginning of the year 3,307,381 4,549,366 29,593,693 Additions 1,272,454 25,044,327 139,445,017 Write-off (30,469) — — Balance at the end of the year 4,549,366 29,593,693 169,038,710 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
Schedule of inventories | As of December 31, 2022 2023 RMB RMB Finished goods 267,036,620 244,373,815 Works in progress 69,290 6,925 Raw materials 149,903,238 148,409,401 Inventories 417,009,148 392,790,141 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of prepayments and other current assets | As of December 31, 2022 2023 RMB RMB Deductible input VAT and VAT rebates receivable 104,391,993 123,335,099 Prepayments to suppliers 54,722,157 35,692,402 Receivable from online platforms 11,555,500 12,258,397 Deferred charge 14,359,452 11,722,400 Interest receivable 1,916,240 7,357,967 Income tax receivable 13,349,602 9,450 Others* 5,400,773 4,696,414 Prepayments and other current assets 205,695,717 195,072,129 * Others mainly include deposits receivable. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT, NET. | |
Schedule of property and equipment | As of December 31, 2022 2023 RMB RMB Furniture 380,987,667 375,782,740 Machinery and equipment 135,365,960 173,869,199 Building 148,449,403 149,465,476 Office and electronic equipment 31,868,495 33,252,080 Leasehold improvement 10,778,718 10,792,479 Motor vehicles 3,811,160 3,811,160 Property, plant and equipment 711,261,403 746,973,134 Less: Accumulated depreciation (313,904,608) (423,860,768) Property, plant and equipment, net 397,356,795 323,112,366 |
Schedule of depreciation expense on property and equipment allocated to expense items | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 19,702,392 23,554,266 26,811,275 General and administrative expenses 7,856,968 8,113,535 9,057,825 Selling and marketing expenses 62,949,248 104,721,594 107,996,726 Research and development expenses 3,092,290 4,381,707 3,641,514 Total depreciation expense 93,600,898 140,771,102 147,507,340 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets | As of December 31, 2022 Gross Net Amortization carrying Accumulated carrying RMB period amount amortization amount Trademarks 5-10 years 8,983,153 (8,503,451) 479,702 Domain name 5-10 years 3,820,913 (3,618,766) 202,147 License 10 years 1,943,396 (767,925) 1,175,471 Total 14,747,462 (12,890,142) 1,857,320 As of December 31, 2023 Gross Net Amortization carrying Accumulated carrying RMB period amount amortization amount Trademarks 5 9,130,529 (8,976,570) 153,959 Domain name 5 3,826,626 (3,655,316) 171,310 License 10 years 1,943,396 (962,264) 981,132 Total 14,900,551 (13,594,150) 1,306,401 |
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, 2021 2022 2023 RMB RMB RMB Cost of revenues 194,340 194,340 194,340 General and administrative expenses 1,677,810 1,745,967 363,079 Total amortization expense 1,872,150 1,940,307 557,419 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | As of December 31, 2022 2023 RMB RMB Prepayment for an investment 7,000,000 — Deposits 2,376,350 2,728,406 Prepayment for property, plant and equipment 1,914,411 2,231,253 Others 1,392,329 1,770,719 Other non-current assets 12,683,090 6,730,378 |
SHORT-TERM BANK BORROWINGS (Tab
SHORT-TERM BANK BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM BANK BORROWINGS | |
Schedule of short-term bank borrowings | As of December 31, 2022 2023 RMB RMB Secured borrowing 160,000,000 100,000,000 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2022 2023 RMB RMB Refundable payment from franchised stores—current 41,735,515 39,203,959 Accrued selling and marketing expenses 8,506,658 29,159,625 Accrued payroll and social insurance 28,508,469 17,566,486 Warranty—current 24,797,169 16,736,341 Construction payable 16,512,545 14,372,306 Operating lease liabilities—current (Note 20) 7,743,648 5,094,066 Sales rebate 13,878,273 4,975,640 Other taxes payable 18,813,540 3,542,993 Interest payable 280,000 87,671 Others* 31,317,126 34,772,309 Accrued expenses and other current liabilities 192,092,943 165,511,396 * Others mainly include accrued professional fees and other general corporate expenses. |
Schedule of movement of provision for warranty | For the Year Ended December 31, 2021 2022 2023 Accrued warranty—beginning of year 59,195,896 47,788,122 33,812,290 Accrual for warranties issued during the year 35,181,557 20,355,810 23,248,155 Warranty claims paid (22,554,689) (23,894,070) (30,051,582) Pre-existing warranty expired (24,034,642) (10,437,572) (1,683,024) Accrued warranty—end of year 47,788,122 33,812,290 25,325,839 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER NON-CURRENT LIABILITIES | |
Summary of other non-current liabilities | As of December 31, 2022 2023 RMB RMB Warranty—non-current 9,015,121 8,589,498 Refundable payment from franchised stores—non-current 1,233,466 379,021 Others 3,192,795 — Other non-current liabilities 13,441,382 8,968,519 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of the share options activities | A summary of the share options activities under the Amended 2016 Plan and the 2018 Plan for the year ended December 31, 2023 was presented below: Weighted Weighted average remaining Aggregate Number of exercise contractual intrinsic shares price years value US$ US$ Outstanding at January 1, 2023 4,414,608 2.11 — — Exercised (464,300) 0.20 — — Forfeited/Expired (7,250) 0.20 — — Outstanding at December 31, 2023 3,943,058 2.34 4.56 1,190,466 Exercisable as of December 31, 2023 3,943,058 2.34 4.56 1,190,466 |
Summary of the restricted share units activities | A summary of the restricted share units activities for the year ended December 31, 2023 was presented below: Weighted average grant Number of date fair shares value US$ Unvested as of January 1, 2023 3,890,658 4.59 Granted 232,000 2.31 Vested (1,507,862) 4.44 Forfeited (611,722) 4.30 Unvested as of December 31, 2023 2,003,074 4.53 |
Schedule of share-based compensation expenses recognized | Total share-based compensation expenses recognized for the years ended December 31, 2021, 2022 and 2023 were allocated to the following expense items: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 846,833 1,224,796 1,237,902 Selling and marketing expenses 13,292,632 15,433,684 9,991,688 Research and development expenses 17,062,024 22,361,742 21,653,946 General and administrative expenses 16,016,667 19,198,964 14,775,768 Total share-based compensation expense 47,218,156 58,219,186 47,659,304 |
Share options | |
Schedule of share-based compensation expenses recognized | Compensation expenses recognized for share options for the years ended December 31, 2021, 2022 and 2023 were allocated to the following expense items: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 8,318 — — Selling and marketing expenses 2,235,102 1,936,414 905,764 Research and development expenses 4,018,126 3,862,189 2,191,242 General and administrative expenses 6,649,255 5,008,382 3,047,542 Total share options compensation expenses 12,910,801 10,806,985 6,144,548 No share options had been granted for the years ended December 31, 2021, 2022 and 2023. The total intrinsic value of share options exercised for the years ended December 31, 2021, 2022 and 2023, were RMB77,271,754, RMB3,708,615 and RMB4,799,425, respectively. The total fair value of shares vested for the years ended December 31, 2021, 2022 and 2023 were RMB15,732,201, RMB10,976,490 and RMB11,027,023, respectively. |
Unvested restricted share units | |
Schedule of share-based compensation expenses recognized | Compensation expenses recognized for restricted share units for the years ended December 31, 2021, 2022 and 2023 were allocated to the following expense items: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 838,515 1,224,796 1,237,902 Selling and marketing expenses 11,057,530 13,497,270 9,085,924 Research and development expenses 13,043,898 18,499,553 19,462,704 General and administrative expenses 9,367,412 14,190,582 11,728,226 Total restricted share units compensation expenses 34,307,355 47,412,201 41,514,756 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENT | |
Schedule of fair value hierarchy for assets and liabilities measured at fair value on recurring basis | December 31, 2022 Total RMB Level 1 Level 2 Level 3 Fair Value Short-term investments (Note 3) — 160,406,301 — 160,406,301 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAX | |
Components of income (loss) before income taxes | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cayman (9,397,404) (10,448,513) (1,192,264) Indonesia (881,810) (984,230) (1,268,462) Hong Kong S.A.R. (6,700,069) (14,613,793) (7,930,644) B.V.I. — (278,774) (48,100) Others — — (840,681) PRC, excluding Hong Kong S.A.R. 289,836,300 (44,894,563) (270,748,715) Total 272,857,017 (71,219,873) (282,028,866) |
Schedule of income tax expense (benefit) | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Current income tax expense (benefit) 42,715,007 (15,677,411) 759,425 Deferred income tax expense (benefit) 4,321,601 (6,079,533) (10,952,309) Total 47,036,608 (21,756,944) (10,192,884) |
Schedule of reconciliation of statutory income tax rate and effective income tax rate | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Computed expected income tax expense (benefit) 68,214,254 (17,804,968) (71,077,803) Non-PRC entities not subject to income tax 4,244,821 6,581,327 2,820,038 Research and development expenses bonus deduction (23,328,287) (34,910,421) (30,807,283) Non-deductible share-based compensation expenses 11,015,406 13,866,734 11,742,974 Other non-deductible expenses 723,768 638,898 2,491,593 Preferential tax rate difference — (3,075,033) 7,301,540 Tax filing differences 2,682,378 (3,770,720) 229,108 Change in valuation allowance (16,515,732) 16,717,239 67,106,949 Actual income tax expense (benefit) 47,036,608 (21,756,944) (10,192,884) Effect of preferential tax rates on basic earnings per Class A and Class B ordinary share — 0.02 (0.05) Effect of preferential tax rates on diluted earnings per Class A and Class B ordinary share — 0.02 (0.05) |
Schedule of deferred income tax assets and deferred income tax liabilities | As of December 31, 2022 2023 RMB RMB Deferred income tax assets Net operating loss carry forwards 33,325,461 74,876,303 Accrued warranty 5,071,844 3,798,876 Advertising expense — 2,113,991 Deferred revenue 8,470,357 8,938,710 Allowance for doubtful accounts 7,037,684 41,878,340 Lease Liabilities 3,334,705 1,099,451 Write-downs for inventories 825,208 4,529,042 Less: Valuation allowance (40,764,285) (107,782,306) Total deferred income tax assets, net 17,300,974 29,452,407 Deferred income tax liabilities Operating lease right of use assets 3,334,705 1,099,451 Short-term investments 60,946 — Property, plant and equipment 9,171,103 9,968,429 Total deferred income tax liabilities 12,566,754 11,067,880 Net deferred income tax assets 6,132,499 20,747,021 Net deferred income tax liabilities 1,398,279 2,362,494 |
Schedule of changes in valuation allowance | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Balance at the beginning of the year 41,219,052 24,508,473 40,764,285 Additions 5,567,822 25,114,239 68,593,841 Reduction (22,278,401) (8,858,427) (1,575,820) Balance at the end of the year 24,508,473 40,764,285 107,782,306 |
NET INCOME (LOSS) PER ORDINAR_2
NET INCOME (LOSS) PER ORDINARY SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME (LOSS) PER ORDINARY SHARE | |
Schedule of basic and diluted net income (loss) per share computation | The following table sets forth the basic and diluted net income (loss) per ordinary share computation and provides a reconciliation of the numerator and denominator for the years presented: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Numerator: Net income (loss) 225,820,409 (49,462,929) (271,835,982) Denominator: Weighted average number of ordinary shares outstanding 153,174,715 154,109,051 154,795,461 Weighted average number of ordinary shares equivalents outstanding 497,643 1,067,871 2,020,644 Denominator for basic net income (loss) per ordinary share 153,672,358 155,176,922 156,816,105 Dilutive effect of outstanding share options 4,366,690 — — Dilutive effect of unvested restricted share units 2,421,928 — — Denominator for diluted net income (loss) per ordinary share 160,460,976 155,176,922 156,816,105 Net income (loss) per ordinary share —Basic 1.47 (0.32) (1.73) —Diluted 1.41 (0.32) (1.73) |
Schedule of antidilutive securities | Securities that could potentially dilute basic net income (loss) per share in the future that were not included in the computation of diluted net income (loss) per share because to do so would have been antidilutive for the years ended December 31, 2022 and 2023 were as follow: For the Year Ended December 31, 2022 2023 Share options 4,414,608 3,943,058 Unvested restricted share units 3,890,658 2,003,074 |
REVENUE INFORMATION (Tables)
REVENUE INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE INFORMATION | |
Schedule of net revenues | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Electric scooter sales 3,252,988,512 2,853,895,423 2,358,658,368 Accessory and spare parts sales 397,088,122 242,296,734 197,634,073 Service revenues 54,460,785 72,405,177 95,465,205 Revenues 3,704,537,419 3,168,597,334 2,651,757,646 |
Schedule of the group's revenue based on geographic areas | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB PRC 3,158,966,932 2,583,843,616 2,247,593,239 Europe 430,201,301 343,157,877 151,521,237 Others 115,369,186 241,595,841 252,643,170 Revenues 3,704,537,419 3,168,597,334 2,651,757,646 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OPERATING LEASES | |
Summary of supplemental information related to operating leases | As of December 31, 2022 2023 RMB RMB Operating lease right-of-use assets 86,597,121 76,821,285 Operating lease liabilities—current (Note 12) 7,743,648 5,094,066 Operating lease liabilities—non-current 7,569,128 280,421 Total operating lease liabilities 15,312,776 5,374,487 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Cash paid for amounts included in the measurement of operating lease liabilities 9,569,023 8,046,828 7,711,479 Right-of-use assets obtained in exchange for new operating lease liabilities 10,201,553 921,405 3,744,607 Right-of-use assets obtained in exchange for prepayment for land use right 26,550,000 — — Modification to right-of-use assets (11,469,923) — (5,217,099) |
Schedule of maturities of lease liabilities under the group's non-cancellable operating leases | As of December 31, 2023 RMB Within 1 year 5,176,941 After 1 year but within 2 years 284,407 Total undiscounted lease payment 5,461,348 less: Imputed interest (86,861) Present value of lease liabilities 5,374,487 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | As of December 31, 2022 2023 RMB RMB Assets Current assets Cash and cash equivalents 12,375,894 233,958,655 Term deposits-current 208,589,770 77,555,565 Restricted cash 176,204,380 107,521,733 Prepayments and other current assets 12,486,238 12,035,145 Total current assets 409,656,282 431,071,098 Non-current assets Investment in and amount due from subsidiaries, consolidated VIE and VIE’s subsidiaries 906,298,879 671,329,320 Other non-current assets 1,219 — Total assets 1,315,956,380 1,102,400,418 Liabilities Current liabilities Amount due to subsidiaries, consolidated VIE and VIE’s subsidiaries 4,262,270 4,564,315 Accrued expenses and other current liabilities 1,596,233 4,219,869 Total current liabilities and total liabilities 5,858,503 8,784,184 Shareholders’ equity: Class A ordinary shares 89,428 90,031 Class B ordinary shares 10,316 10,316 Additional paid-in capital 1,915,825,641 1,964,138,365 Accumulated other comprehensive loss (16,536,686) (9,495,674) Accumulated deficit (589,290,822) (861,126,804) Total shareholders’ equity 1,310,097,877 1,093,616,234 Total liabilities and shareholders’ equity 1,315,956,380 1,102,400,418 |
Schedule of condensed statements of results of operations | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Total operating expenses (11,441,931) (15,414,575) (17,739,201) Share of income (loss) from subsidiaries, consolidated VIE and VIE’s subsidiaries 235,264,719 (39,264,560) (270,498,551) Interest income 1,997,621 5,216,206 16,401,770 Income (loss) before income taxes 225,820,409 (49,462,929) (271,835,982) Income tax expense — — — Net income (loss) 225,820,409 (49,462,929) (271,835,982) |
Schedule of condensed statements of cash flows | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB Net cash provided by (used in) operating activities 25,839,822 (23,565,305) 14,392,402 Net cash provided by (used in) investing activities 16,132,750 (95,940,040) 133,818,900 Net cash provided by financing activities 6,246,384 2,203,086 654,023 Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash (6,107,381) 21,972,182 4,034,789 Net increase (decrease) in cash, cash equivalents and restricted cash 42,111,575 (95,330,077) 152,900,114 Cash, cash equivalents and restricted cash at the beginning of the year 241,798,776 283,910,351 188,580,274 Cash, cash equivalents and restricted cash at the end of the year 283,910,351 188,580,274 341,480,388 |
DESCRIPTION OF ORGANIZATION A_3
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES - Principal terms of VIE Agreements (Details) | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
DESCRIPTION OF ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Percentage of monthly net profits under Exclusive Business Cooperation Agreement | 100% |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Group's VIE information | |||||
Total term deposits held | ¥ 97,555,565 | ¥ 228,589,770 | |||
Restricted cash | 107,666,733 | 186,340,321 | $ 15,164,542 | ||
Short-term investments | 160,406,301 | ||||
Accounts receivable, net | 94,956,170 | 299,742,923 | 13,374,297 | ||
Inventories | 392,790,141 | 417,009,148 | 55,323,334 | ||
Prepayments and other current assets | 195,072,129 | 205,695,717 | 27,475,335 | ||
Total current assets | 1,760,614,198 | 2,012,071,029 | 247,977,323 | ||
Term deposits-non-current | 20,000,000 | ||||
Property, plant and equipment, net | 323,112,366 | 397,356,795 | 45,509,425 | ||
Intangible assets, net | 1,306,401 | 1,857,320 | 184,003 | ||
Operating lease right-of-use assets | 76,821,285 | 86,597,121 | 10,820,052 | ||
Deferred income tax assets | 20,747,021 | 6,132,499 | 2,922,157 | ||
Other non-current assets | 6,730,378 | 12,683,090 | 947,954 | ||
Total assets | 2,189,331,649 | 2,536,697,854 | 308,360,914 | ||
Short-term bank borrowings | 100,000,000 | 160,000,000 | 14,084,705 | ||
Notes payable | 167,282,688 | 316,832,113 | 23,561,274 | ||
Accounts payable | 575,724,288 | 459,466,937 | 81,089,070 | ||
Income taxes payable | 1,357,913 | 1,898,065 | 191,258 | ||
Advances from customers | 19,304,488 | 24,931,897 | 2,718,980 | ||
Deferred revenue - current | 41,755,097 | 37,539,733 | 5,881,082 | ||
Accrued expenses and other current liabilities | 165,511,396 | 192,092,943 | 23,311,795 | ||
Total current liabilities | 1,070,935,870 | 1,192,761,688 | 150,838,164 | ||
Deferred revenue-non-current | 13,168,111 | 11,429,500 | 1,854,690 | ||
Deferred income tax liabilities | 2,362,494 | 1,398,279 | 332,750 | ||
Operating lease liabilities | 280,421 | 7,569,128 | 39,496 | ||
Other non-current liabilities | 8,968,519 | 13,441,382 | 1,263,189 | ||
Total liabilities | 1,095,715,415 | 1,226,599,977 | $ 154,328,289 | ||
Revenues | 2,651,757,646 | $ 373,492,253 | 3,168,597,334 | ¥ 3,704,537,419 | |
Net income (loss) | (271,835,982) | (38,287,297) | (49,462,929) | 225,820,409 | |
Net cash provided by (used in) operating activities | 93,735,092 | 13,202,312 | (121,856,343) | 334,174,702 | |
Net cash (used in) provided by investing activities | 216,310,708 | 30,466,726 | 397,891,899 | (295,058,974) | |
Net cash used in financing activities | (59,345,977) | (8,358,706) | (17,796,914) | 6,246,384 | |
Effect of foreign currency exchange rate changes on cash and restricted cash | 8,913,200 | 1,255,398 | 30,043,572 | (8,490,370) | |
Net increase in cash and restricted cash | 259,613,023 | 36,565,730 | 288,282,214 | 36,871,742 | |
Cash, cash equivalents and restricted cash at the beginning of the year | 720,627,170 | 101,498,214 | 432,344,956 | 395,473,214 | |
Cash, cash equivalents and restricted cash at the end of the year | 980,240,193 | $ 138,063,944 | 720,627,170 | 432,344,956 | |
VIE | |||||
Group's VIE information | |||||
Cash | 620,484,535 | 493,570,803 | |||
Total term deposits held | 20,000,000 | ||||
Restricted cash | 145,000 | 6,229,605 | |||
Short-term investments | 160,406,301 | ||||
Accounts receivable, net | 91,975,054 | 298,732,239 | |||
Inventories | 386,966,973 | 411,954,893 | |||
Prepayments and other current assets | 177,957,171 | 187,576,865 | |||
Amounts due from inter-companies | 44,220,970 | 24,251,018 | |||
Total current assets | 1,341,749,703 | 1,582,721,724 | |||
Term deposits-non-current | 20,000,000 | ||||
Property, plant and equipment, net | 321,213,398 | 394,621,585 | |||
Intangible assets, net | 1,102,870 | 1,317,785 | |||
Operating lease right-of-use assets | 76,821,285 | 86,597,121 | |||
Deferred income tax assets | 20,747,021 | 6,132,499 | |||
Other non-current assets | 6,720,608 | 5,677,414 | |||
Total assets | 1,768,354,885 | 2,097,068,128 | |||
Short-term bank borrowings | 100,000,000 | 160,000,000 | |||
Notes payable | 167,282,688 | 316,832,113 | |||
Accounts payable | 575,235,413 | 459,406,790 | |||
Amounts due to inter-companies | 467,282,009 | 476,120,909 | |||
Income taxes payable | 1,195,114 | 1,501,992 | |||
Advances from customers | 16,399,926 | 23,522,149 | |||
Deferred revenue - current | 41,755,097 | 37,539,733 | |||
Accrued expenses and other current liabilities | 151,286,008 | 175,352,229 | |||
Total current liabilities | 1,520,436,255 | 1,650,275,915 | |||
Deferred revenue-non-current | 13,168,111 | 11,429,500 | |||
Deferred income tax liabilities | 2,362,494 | 1,398,279 | |||
Operating lease liabilities | 280,421 | 7,569,128 | |||
Other non-current liabilities | 8,968,519 | 13,441,382 | |||
Total liabilities | 1,545,215,800 | 1,684,114,204 | |||
Revenues | 2,645,570,002 | 3,187,989,945 | 3,768,134,434 | ||
Net income (loss) | (236,441,380) | (9,347,980) | 213,848,471 | ||
Net cash provided by (used in) operating activities | 93,727,586 | (74,417,318) | 354,675,219 | ||
Net cash (used in) provided by investing activities | 82,502,334 | 455,930,283 | (329,808,349) | ||
Net cash used in financing activities | (60,000,000) | (20,000,000) | |||
Effect of foreign currency exchange rate changes on cash and restricted cash | 4,599,207 | 7,993,970 | (422,991) | ||
Net increase in cash and restricted cash | 120,829,127 | 369,506,935 | 24,443,879 | ||
Cash, cash equivalents and restricted cash at the beginning of the year | 499,800,408 | 130,293,473 | 105,849,594 | ||
Cash, cash equivalents and restricted cash at the end of the year | ¥ 620,629,535 | ¥ 499,800,408 | ¥ 130,293,473 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convenience translation (Details) | Dec. 31, 2023 $ / ¥ |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Convenience translation rate (in RMB/USD) | 7.0999 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and cash equivalents (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Minimum | ||
Cash and cash equivalents | ||
Original maturities of term deposit | 3 months | |
Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | ¥ 872,102,927 | ¥ 533,697,058 |
PRC | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 852,651,899 | 505,445,775 |
PRC | Denominated in EUR | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 18,233,516 | 5,986,595 |
PRC | Denominated in RMB | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 334,796,621 | 278,917,866 |
PRC | Denominated in GPB | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 504,471 | 244,790 |
PRC | Denominated in USD | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 499,117,291 | 220,296,524 |
United States | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 691,290 | 10,087,973 |
United States | Denominated in USD | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 691,290 | 10,087,973 |
Hong Kong SAR | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 11,556,322 | 14,709,796 |
Hong Kong SAR | Denominated in HKD | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 79,213 | 78,206 |
Hong Kong SAR | Denominated in USD | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | 11,477,109 | 14,631,590 |
Others | Cash and cash equivalents | ||
Cash and cash equivalents | ||
Total cash and cash equivalents balances held at financial institutions | ¥ 7,203,416 | ¥ 3,453,514 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Term Deposits (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Total term deposits held | ¥ 97,555,565 | ¥ 228,589,770 | |
Term deposits-current | 97,555,565 | $ 13,740,414 | 208,589,770 |
Term deposits-non-current | 20,000,000 | ||
Denominated in RMB | |||
Total term deposits held | 20,000,000 | 20,000,000 | |
Denominated in USD | |||
Total term deposits held | ¥ 77,555,565 | ¥ 208,589,770 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted cash (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Reconciliation of cash and cash equivalents and restricted cash | ||||||
Cash and cash equivalents | ¥ 872,573,460 | $ 122,899,401 | ¥ 534,286,849 | |||
Restricted cash | 107,666,733 | 15,164,542 | 186,340,321 | |||
Total cash, cash equivalents and restricted cash | ¥ 980,240,193 | $ 138,063,944 | ¥ 720,627,170 | $ 101,498,214 | ¥ 432,344,956 | ¥ 395,473,214 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Short-term investments (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Schedule of Investments [Line Items] | ||||
Short-term investments | ¥ 420,000,000 | $ 59,155,763 | ¥ 2,593,000,000 | ¥ 6,032,000,000 |
Changes in fair value of investments | 1,426,370 | $ 200,900 | ¥ 10,917,736 | ¥ 21,167,575 |
Short-term investments | ||||
Schedule of Investments [Line Items] | ||||
Changes in fair value of investments | ¥ 1,426,370 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Building | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 50 years |
Machinery and equipment | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and equipment | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 5 years |
Office and electronic equipment | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 2 years |
Office and electronic equipment | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 5 years |
Motor vehicles | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 3 years |
Motor vehicles | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, Plant and Equipment, Useful Life | 4 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases, Impairment of Long-lived Assets (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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 ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Value added taxes, Revenue recognition (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Revenue recognition | ||||
Cost of revenues | ¥ 2,081,010,633 | $ 293,104,217 | ¥ 2,498,916,443 | ¥ 2,891,758,188 |
Transaction price allocated to remaining performance obligations | 74,227,696 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||||
Revenue recognition | ||||
Transaction price allocated to remaining performance obligations | ¥ 61,059,585 | |||
Period over which remaining performance obligation is expected to be recognized as revenue | 12 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||||
Revenue recognition | ||||
Transaction price allocated to remaining performance obligations | ¥ 13,168,111 | |||
Shipping costs incurred | ||||
Revenue recognition | ||||
Cost of revenues | ¥ 52,541,201 | ¥ 101,970,407 | ¥ 49,456,660 | |
Revenues from sales of products | ||||
Value added taxes | ||||
VAT rate (in percentage) | 13% | |||
Revenues from sales of services | ||||
Value added taxes | ||||
VAT rate (in percentage) | 6% | |||
Minimum | ||||
Revenue recognition | ||||
Return and refund policy term (in days) | 7 days | 7 days | ||
Free service period | 1 year | 1 year | ||
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||||
Revenue recognition | ||||
Period over which remaining performance obligation is expected to be recognized as revenue | 12 months | |||
Maximum | ||||
Revenue recognition | ||||
Return and refund policy term (in days) | 30 days | 30 days | ||
Free service period | 2 years | 2 years | ||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||||
Revenue recognition | ||||
Period over which remaining performance obligation is expected to be recognized as revenue | 36 months |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contract Balances (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the Group's contract liabilities (advances from customers and deferred revenue) | ||
Contract liabilities, beginning balance | ¥ 73,901,130 | ¥ 60,718,426 |
Cash received in advance, excluding VAT | 2,118,016,702 | 2,852,443,422 |
Revenue recognized from opening balance of contract liabilities | (62,471,630) | (50,024,734) |
Revenue recognized from contract liabilities arising during current year | (2,055,218,506) | (2,789,235,984) |
Contract liabilities, ending balance | ¥ 74,227,696 | ¥ 73,901,130 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Selling and Marketing Expenses, Government Grants, Employee Benefits (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Advertising expenses | ¥ 177,824,898 | ¥ 191,776,905 | ¥ 160,415,978 |
Government grants | 2,968,735 | 16,385,038 | 48,726,818 |
Employee social benefits included as expenses | ¥ 42,376,447 | ¥ 42,637,403 | ¥ 31,122,424 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration and risk (Details) | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Concentration and risk | |||||
Revenues | ¥ 2,651,757,646 | $ 373,492,253 | ¥ 3,168,597,334 | ¥ 3,704,537,419 | |
Accounts receivable, net | 94,956,170 | 299,742,923 | $ 13,374,297 | ||
Advances from customers | 19,304,488 | 24,931,897 | $ 2,718,980 | ||
Total purchases | Suppliers risk | Supplier X | |||||
Concentration and risk | |||||
Purchases from suppliers | ¥ 354,956,312 | ¥ 298,264,146 | |||
Concentration risk (as a percent) | 13% | 12% | |||
Total purchases | Suppliers risk | Supplier Y | |||||
Concentration and risk | |||||
Purchases from suppliers | ¥ 286,132,811 | ||||
Concentration risk (as a percent) | 16% | 16% | |||
Revenue | Customer risk | Customer A | |||||
Concentration and risk | |||||
Revenues | ¥ 319,208,693 | ||||
Concentration risk (as a percent) | 12% | 12% | |||
Accounts receivable | Customer risk | Customer B | |||||
Concentration and risk | |||||
Accounts receivable, net | ¥ 90,892,779 | ¥ 135,105,131 | |||
Concentration risk (as a percent) | 34% | 34% | 45% | ||
Accounts receivable | Customer risk | Customer C | |||||
Concentration and risk | |||||
Accounts receivable, net | ¥ 32,443,005 | ||||
Concentration risk (as a percent) | 12% | 12% | |||
Advances from customers | Customer risk | Customer D | |||||
Concentration and risk | |||||
Advances from customers | ¥ 2,396,333 | ¥ 2,787,482 | |||
Concentration risk (as a percent) | 12% | 12% | 11% |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of operating segment | 1 |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Statutory Reserves (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of after tax profit, transferred annually by PRC subsidiaries to statutory surplus fund | 10% | ||
Maximum percentage criteria for appropriation of after-tax profit of PRC subsidiaries to statutory surplus fund (as a percent) | 50% | ||
Appropriations to statutory reserves | ¥ 0 | ¥ 42,654 | ¥ 20,875,864 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
SHORT-TERM INVESTMENTS | ||
Aggregate cost basis | ¥ 160,000,000 | |
Gross unrealized holding gain | 406,301 | |
Aggregate fair value | 160,406,301 | |
Gross unrealized holding losses | ¥ 0 | ¥ 0 |
ACCOUNTS RECEIVABLE, NET - Summ
ACCOUNTS RECEIVABLE, NET - Summary (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
ACCOUNTS RECEIVABLE, NET | |||||
Accounts receivable | ¥ 263,994,880 | ¥ 329,336,616 | |||
Allowance for doubtful accounts | (169,038,710) | (29,593,693) | ¥ (4,549,366) | ¥ (3,307,381) | |
Accounts receivable, net | ¥ 94,956,170 | $ 13,374,297 | ¥ 299,742,923 |
ACCOUNTS RECEIVABLE, NET - Move
ACCOUNTS RECEIVABLE, NET - Movement of the allowance for doubtful accounts (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of movement of the allowance for doubtful accounts | |||
Balance at the beginning of the year | ¥ 29,593,693 | ¥ 4,549,366 | ¥ 3,307,381 |
Additions | 139,445,017 | 25,044,327 | 1,272,454 |
Write-off | (30,469) | ||
Balance at the end of the year | ¥ 169,038,710 | ¥ 29,593,693 | ¥ 4,549,366 |
INVENTORIES (Details)
INVENTORIES (Details) | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
INVENTORIES | |||||
Finished goods | ¥ 244,373,815 | ¥ 267,036,620 | |||
Works in progress | 6,925 | 69,290 | |||
Raw materials | 148,409,401 | 149,903,238 | |||
Inventories | 392,790,141 | 417,009,148 | $ 55,323,334 | ||
Write-down of inventories (Note 5) | ¥ 21,681,652 | $ 3,053,797 | ¥ 8,991,793 | ¥ 3,679,669 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Deductible input VAT and VAT rebates receivable | ¥ 123,335,099 | ¥ 104,391,993 | |
Advances to suppliers | 35,692,402 | 54,722,157 | |
Receivable from online platforms | 12,258,397 | 11,555,500 | |
Deferred charge | 11,722,400 | 14,359,452 | |
Interest receivable | 7,357,967 | 1,916,240 | |
Income tax receivable | 9,450 | 13,349,602 | |
Others | 4,696,414 | 5,400,773 | |
Prepayments and other current assets | ¥ 195,072,129 | $ 27,475,335 | ¥ 205,695,717 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Summary (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Property, plant and equipment | ¥ 746,973,134 | ¥ 711,261,403 | |
Less: Accumulated depreciation | (423,860,768) | (313,904,608) | |
Property, plant and equipment, net | 323,112,366 | $ 45,509,425 | 397,356,795 |
Furniture | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Property, plant and equipment | 375,782,740 | 380,987,667 | |
Machinery and equipment | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Property, plant and equipment | 173,869,199 | 135,365,960 | |
Building | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Property, plant and equipment | 149,465,476 | 148,449,403 | |
Office and electronic equipment | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Property, plant and equipment | 33,252,080 | 31,868,495 | |
Leasehold improvement | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Property, plant and equipment | 10,792,479 | 10,778,718 | |
Motor vehicles | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Property, plant and equipment | ¥ 3,811,160 | ¥ 3,811,160 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Depreciation expense (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Depreciation expense | ¥ 147,507,340 | ¥ 140,771,102 | ¥ 93,600,898 |
Cost of revenues | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Depreciation expense | 26,811,275 | 23,554,266 | 19,702,392 |
General and administrative expenses | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Depreciation expense | 9,057,825 | 8,113,535 | 7,856,968 |
Selling and marketing expenses | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Depreciation expense | 107,996,726 | 104,721,594 | 62,949,248 |
Research and development expenses | |||
PROPERTY, PLANT AND EQUIPMENT, NET. | |||
Depreciation expense | ¥ 3,641,514 | ¥ 4,381,707 | ¥ 3,092,290 |
INTANGIBLE ASSETS, NET - Summar
INTANGIBLE ASSETS, NET - Summary (Details) | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | |
INTANGIBLE ASSETS, NET | |||
Gross carrying amount | ¥ 14,900,551 | ¥ 14,747,462 | |
Accumulated amortization | (13,594,150) | (12,890,142) | |
Net carrying amount | 1,306,401 | 1,857,320 | $ 184,003 |
Trademarks | |||
INTANGIBLE ASSETS, NET | |||
Gross carrying amount | 9,130,529 | 8,983,153 | |
Accumulated amortization | (8,976,570) | (8,503,451) | |
Net carrying amount | ¥ 153,959 | ¥ 479,702 | |
Trademarks | Maximum | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 10 years | 10 years | |
Trademarks | Minimum | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 5 years | 5 years | |
Domain name | |||
INTANGIBLE ASSETS, NET | |||
Gross carrying amount | ¥ 3,826,626 | ¥ 3,820,913 | |
Accumulated amortization | (3,655,316) | (3,618,766) | |
Net carrying amount | ¥ 171,310 | ¥ 202,147 | |
Domain name | Maximum | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 10 years | 10 years | |
Domain name | Minimum | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 5 years | 5 years | |
License | |||
INTANGIBLE ASSETS, NET | |||
Intangible assets, amortization period | 10 years | 10 years | |
Gross carrying amount | ¥ 1,943,396 | ¥ 1,943,396 | |
Accumulated amortization | (962,264) | (767,925) | |
Net carrying amount | ¥ 981,132 | ¥ 1,175,471 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization expense on intangible assets (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |||
Total amortization expense | ¥ 557,419 | ¥ 1,940,307 | ¥ 1,872,150 |
Estimated future amortization expense | |||
Estimated amortization expense for the year ending 2023 | 264,453 | ||
Estimated amortization expense for the year ending 2024 | 264,453 | ||
Estimated amortization expense for the year ending 2025 | 250,275 | ||
Estimated amortization expense for the year ending 2026 | 248,986 | ||
Estimated amortization expense for the year ending 2027 | 248,986 | ||
Cost of revenues | |||
INTANGIBLE ASSETS, NET | |||
Total amortization expense | 194,340 | 194,340 | 194,340 |
General and administrative expenses | |||
INTANGIBLE ASSETS, NET | |||
Total amortization expense | ¥ 363,079 | ¥ 1,745,967 | ¥ 1,677,810 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
OTHER NON-CURRENT ASSETS | |||
Prepayment for an investment | ¥ 7,000,000 | ||
Deposits | ¥ 2,728,406 | 2,376,350 | |
Prepayment for property, plant and equipment | 2,231,253 | 1,914,411 | |
Others | 1,770,719 | 1,392,329 | |
Other non-current assets | ¥ 6,730,378 | $ 947,954 | ¥ 12,683,090 |
SHORT-TERM BANK BORROWINGS (Det
SHORT-TERM BANK BORROWINGS (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||
Aug. 31, 2023 CNY (¥) | Jun. 30, 2023 CNY (¥) | Mar. 31, 2023 CNY (¥) | Jan. 31, 2023 | Dec. 31, 2022 CNY (¥) | Jun. 30, 2022 CNY (¥) | May 31, 2022 CNY (¥) | Apr. 30, 2022 | Dec. 31, 2021 CNY (¥) | Sep. 30, 2021 CNY (¥) | Jul. 31, 2021 CNY (¥) | Jun. 30, 2021 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
SHORT-TERM BANK BORROWINGS | |||||||||||||||||
Restricted cash | ¥ 186,340,321 | ¥ 107,666,733 | ¥ 186,340,321 | $ 15,164,542 | |||||||||||||
Weighted average interest rate | 3% | 3.20% | 3% | 3.20% | |||||||||||||
Drawdowns repaid | ¥ 160,000,000 | $ 22,535,528 | ¥ 360,000,000 | ¥ 340,000,000 | |||||||||||||
Two-year secured loan facility | |||||||||||||||||
SHORT-TERM BANK BORROWINGS | |||||||||||||||||
Debt term | 2 years | ||||||||||||||||
Withdrawal amount under facility agreement | ¥ 160,000,000 | ¥ 160,000,000 | ¥ 160,000,000 | ¥ 160,000,000 | |||||||||||||
Percentage of interest bearded under facility agreement | 3% | 3% | 3.20% | 3.50% | |||||||||||||
Repayment of loan | ¥ 120,000,000 | ¥ 40,000,000 | |||||||||||||||
Collateral deposits | ¥ 176,204,380 | 0 | 176,204,380 | ||||||||||||||
Outstanding amount | 160,000,000 | 0 | 160,000,000 | ||||||||||||||
Two-year secured loan facility | Maximum | |||||||||||||||||
SHORT-TERM BANK BORROWINGS | |||||||||||||||||
Maximum credit facility amount | ¥ 160,000,000 | ||||||||||||||||
Twelve months secured loan facility | |||||||||||||||||
SHORT-TERM BANK BORROWINGS | |||||||||||||||||
Debt term | 12 months | ||||||||||||||||
Withdrawal amount under facility agreement | ¥ 58,619,195 | ¥ 41,380,805 | |||||||||||||||
Percentage of interest bearded under facility agreement | 3.20% | 3.20% | |||||||||||||||
Collateral deposits | 107,521,732 | ||||||||||||||||
Outstanding amount | 100,000,000 | ||||||||||||||||
Twelve months secured loan facility | Maximum | |||||||||||||||||
SHORT-TERM BANK BORROWINGS | |||||||||||||||||
Maximum credit facility amount | ¥ 160,000,000 | ||||||||||||||||
Short term bank borrowings | |||||||||||||||||
SHORT-TERM BANK BORROWINGS | |||||||||||||||||
Unused secured loan facility amount | 0 | 60,000,000 | 0 | ||||||||||||||
Secured borrowings | |||||||||||||||||
SHORT-TERM BANK BORROWINGS | |||||||||||||||||
Short-term bank borrowings | 160,000,000 | ¥ 100,000,000 | 160,000,000 | ||||||||||||||
Commercial bank | |||||||||||||||||
SHORT-TERM BANK BORROWINGS | |||||||||||||||||
Short-term bank borrowings | ¥ 0 | ¥ 20,000,000 | ¥ 20,000,000 | ¥ 0 | |||||||||||||
Debt term | 1 year | 12 months | 10 months | ||||||||||||||
Interest rate (in percent) | 3.30% | 3.50% |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - CNY (¥) | 1 Months Ended | |||||
May 31, 2022 | Apr. 30, 2022 | Jul. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commercial bank | ||||||
NOTES PAYABLE | ||||||
Debt term | 1 year | 12 months | 10 months | |||
Notes Payable | ||||||
NOTES PAYABLE | ||||||
Unused secured loan facility amount | ¥ 132,717,312 | ¥ 183,167,887 | ||||
Notes Payable | Commercial bank | ||||||
NOTES PAYABLE | ||||||
Maximum credit facility amount | ¥ 300,000,000 | ¥ 200,000,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Summary (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Refundable payment from franchised stores-current | ¥ 39,203,959 | ¥ 41,735,515 | |
Accrued selling and marketing expenses | 29,159,625 | 8,506,658 | |
Accrued payroll and social insurance | 17,566,486 | 28,508,469 | |
Warranty-current | 16,736,341 | 24,797,169 | |
Construction payable | 14,372,306 | 16,512,545 | |
Operating lease liabilities-current (Note 12) | 5,094,066 | 7,743,648 | |
Sales rebate | 4,975,640 | 13,878,273 | |
Other taxes payable | 3,542,993 | 18,813,540 | |
Interest payable | 87,671 | 280,000 | |
Others | 34,772,309 | 31,317,126 | |
Accrued expenses and other current liabilities | ¥ 165,511,396 | $ 23,311,795 | ¥ 192,092,943 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Warranty terms (Details) | 12 Months Ended |
Dec. 31, 2023 km | |
Lithium-ion battery packs, model 1 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Warranty term | 24 months |
Kilometers covered under warranty | 20,000 |
Lithium-ion battery packs, model 2 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Warranty term | 36 months |
Kilometers covered under warranty | 30,000 |
Minimum | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Warranty term | 6 months |
Minimum | Smart electric-scooters | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Warranty term | 6 months |
Minimum | Key components of electric scooters | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Warranty term | 12 months |
Maximum | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Warranty term | 36 months |
Maximum | Smart electric-scooters | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Warranty term | 36 months |
Maximum | Key components of electric scooters | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement of provision | |||
Accrued warranty-beginning of year | ¥ 33,812,290 | ¥ 47,788,122 | ¥ 59,195,896 |
Accrual for warranties issued during the year | 23,248,155 | 20,355,810 | 35,181,557 |
Warranty claims paid | (30,051,582) | (23,894,070) | (22,554,689) |
Pre-existing warranty expired | (1,683,024) | (10,437,572) | (24,034,642) |
Accrued warranty-end of year | ¥ 25,325,839 | ¥ 33,812,290 | ¥ 47,788,122 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
OTHER NON-CURRENT LIABILITIES | |||
Warranty-non-current | ¥ 8,589,498 | ¥ 9,015,121 | |
Refundable payment from franchised stores-non-current | 379,021 | 1,233,466 | |
Others | 3,192,795 | ||
Other non-current liabilities | ¥ 8,968,519 | $ 1,263,189 | ¥ 13,441,382 |
ORDINARY SHARE (Details)
ORDINARY SHARE (Details) - USD ($) | 12 Months Ended | ||
May 17, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
ORDINARY SHARE | |||
Authorized share capital | $ 500,000 | ||
Ordinary shares, authorized | 5,000,000,000 | ||
Class A Ordinary Shares | |||
ORDINARY SHARE | |||
Ordinary shares, authorized | 4,900,000,000 | 4,900,000,000 | |
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, outstanding | 138,575,010 | 137,719,542 | |
Class B Ordinary Shares | |||
ORDINARY SHARE | |||
Ordinary shares, authorized | 50,000,000 | 50,000,000 | |
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Shares converted to Class A ordinary shares (in shares) | 1,440,000 | ||
Ordinary shares, outstanding | 16,542,020 | 16,542,020 | |
Other classes, Ordinary Shares | |||
ORDINARY SHARE | |||
Ordinary shares, authorized | 50,000,000 | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 shares | Mar. 31, 2018 shares | Dec. 31, 2023 CNY (¥) installment shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 | |
Share options | ||||||
SHARE-BASED COMPENSATION | ||||||
Unrecognized compensation expense | ¥ | ¥ 0 | |||||
Unvested restricted share units | ||||||
SHARE-BASED COMPENSATION | ||||||
Unrecognized compensation expense | ¥ | ¥ 48,330,116 | |||||
Unrecognized compensation expense, recognition period | 1 year 11 months 1 day | |||||
Number of awards granted (in shares) | 232,000 | |||||
Number of equal installments in which the awards will vest | installment | 4 | |||||
Unvested restricted share units | Tranche One | ||||||
SHARE-BASED COMPENSATION | ||||||
Number of awards granted (in shares) | 128,000 | |||||
Number of equal installments in which the awards will vest | installment | 4 | |||||
Unvested restricted share units | Tranche Two | ||||||
SHARE-BASED COMPENSATION | ||||||
Number of equal installments in which the awards will vest | installment | 2 | |||||
Amended 2016 Plan | ||||||
SHARE-BASED COMPENSATION | ||||||
Maximum aggregate shares that may be issued | 5,861,480 | |||||
Expiration period | 10 years | |||||
2018 Share Incentive Plan | ||||||
SHARE-BASED COMPENSATION | ||||||
Maximum aggregate shares that may be issued | 6,733,703 | |||||
Maximum percentage of total ordinary shares issued and outstanding that may be issued | 1.50% | 1.50% | 1.50% | 1.50% | ||
Maximum aggregate shares that may be issued, annual increase | 2,313,923 | 2,305,212 | 2,285,407 | |||
Arrangement with grantees | Unvested restricted share units | ||||||
SHARE-BASED COMPENSATION | ||||||
Number of awards granted (in shares) | 232,000 | |||||
Amended 2016 Plan and 2018 Plan | ||||||
SHARE-BASED COMPENSATION | ||||||
Granted (in shares) | 0 | 0 | 0 | |||
Total intrinsic value of share options exercised | ¥ | ¥ 4,799,425 | ¥ 3,708,615 | ¥ 77,271,754 | |||
Total fair value of shares vested | ¥ | ¥ 11,027,023 | ¥ 10,976,490 | ¥ 15,732,201 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share option activities (Details) - Amended 2016 Plan and 2018 Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of share | |||
Outstanding, at beginning of period (in shares) | 4,414,608 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (464,300) | ||
Forfeited/Expired (in shares) | (7,250) | ||
Outstanding, at end of period (in shares) | 3,943,058 | 4,414,608 | |
Exercisable, at end of period (in shares) | 3,943,058 | ||
Weighted average exercise price | |||
Outstanding, at beginning of period (in dollars per share) | $ 2.11 | ||
Exercised (in dollars per share) | 0.20 | ||
Forfeited/Expired (in dollars per share) | 0.20 | ||
Outstanding, at end of period (in dollars per share) | 2.34 | $ 2.11 | |
Exercisable, at end of period (in dollars per share) | $ 2.34 | ||
Additional disclosures | |||
Weighted remaining contractual years, Outstanding at end of period | 4 years 6 months 21 days | ||
Weighted remaining contractual years, Exercisable at end of period | 4 years 6 months 21 days | ||
Aggregate intrinsic value, Outstanding at end of period | $ 1,190,466 | ||
Aggregate intrinsic value, Exercisable at end of period | $ 1,190,466 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted share units activities (Details) - Unvested restricted share units | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of shares | |
Unvested balance at beginning of period (in shares) | shares | 3,890,658 |
Granted (in shares) | shares | 232,000 |
Vested (in shares) | shares | (1,507,862) |
Forfeited (in shares) | shares | (611,722) |
Unvested balance at end of period (in shares) | shares | 2,003,074 |
Weighted average grant date fair value | |
Unvested balance at beginning of period (in dollars per share) | $ / shares | $ 4.59 |
Granted (in dollars per share) | $ / shares | 2.31 |
Vested (in dollars per share) | $ / shares | 4.44 |
Forfeited (in dollars per share) | $ / shares | 4.30 |
Unvested balance at end of period (in dollars per share) | $ / shares | $ 4.53 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation costs (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | ¥ 47,659,304 | ¥ 58,219,186 | ¥ 47,218,156 |
Cost of revenues | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 1,237,902 | 1,224,796 | 846,833 |
Selling and marketing expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 9,991,688 | 15,433,684 | 13,292,632 |
Research and development expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 21,653,946 | 22,361,742 | 17,062,024 |
General and administrative expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 14,775,768 | 19,198,964 | 16,016,667 |
Share options | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 6,144,548 | 10,806,985 | 12,910,801 |
Share options | Cost of revenues | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 8,318 | ||
Share options | Selling and marketing expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 905,764 | 1,936,414 | 2,235,102 |
Share options | Research and development expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 2,191,242 | 3,862,189 | 4,018,126 |
Share options | General and administrative expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 3,047,542 | 5,008,382 | 6,649,255 |
Unvested restricted share units | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 41,514,756 | 47,412,201 | 34,307,355 |
Unvested restricted share units | Cost of revenues | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 1,237,902 | 1,224,796 | 838,515 |
Unvested restricted share units | Selling and marketing expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 9,085,924 | 13,497,270 | 11,057,530 |
Unvested restricted share units | Research and development expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | 19,462,704 | 18,499,553 | 13,043,898 |
Unvested restricted share units | General and administrative expenses | |||
SHARE-BASED COMPENSATION | |||
Share-based compensation expenses | ¥ 11,728,226 | ¥ 14,190,582 | ¥ 9,367,412 |
FAIR VALUE MEASUREMENT - Fair v
FAIR VALUE MEASUREMENT - Fair value hierarchy for assets and liabilities (Details) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value hierarchy for assets and liabilities measured at fair value on recurring basis | ||
Short-term investments (Note 3) | ¥ 160,406,301 | |
Assets at fair value | ¥ 0 | |
Liabilities at fair value | ¥ 0 | |
Level 2 | ||
Fair value hierarchy for assets and liabilities measured at fair value on recurring basis | ||
Short-term investments (Note 3) | ¥ 160,406,301 |
INCOME TAX - Summary (Details)
INCOME TAX - Summary (Details) - HKD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | |
United States | |||||
INCOME TAX | |||||
Statutory income tax (as a percent) | 21% | ||||
Indonesia | |||||
INCOME TAX | |||||
Statutory income tax (as a percent) | 25% | ||||
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% | ||||
PRC | Beijing Niudian | |||||
INCOME TAX | |||||
Preferential tax rate | 15% | 15% | |||
PRC | Forecast | Beijing Niudian | |||||
INCOME TAX | |||||
Preferential tax rate | 15% | ||||
PRC | Jiangsu Xiaoniu | |||||
INCOME TAX | |||||
Preferential tax rate | 15% | 15% | 15% |
INCOME TAX - Components of inco
INCOME TAX - Components of income (loss) before income taxes and withholding tax on undistributed dividends (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INCOME TAX | ||||
Income (loss) before income taxes | ¥ (282,028,866) | $ (39,722,935) | ¥ (71,219,873) | ¥ 272,857,017 |
Current income tax expense (benefit) | 759,425 | (15,677,411) | 42,715,007 | |
Deferred income tax expense (benefit) | (10,952,309) | (1,542,600) | (6,079,533) | 4,321,601 |
Total | ¥ (10,192,884) | $ (1,435,638) | (21,756,944) | 47,036,608 |
Withholding income tax rate | 5% | 5% | ||
Percentage of ownership interests held by foreign investors (as a percent) | 25% | 25% | ||
Cayman | ||||
INCOME TAX | ||||
Income (loss) before income taxes | ¥ (1,192,264) | (10,448,513) | (9,397,404) | |
Indonesia | ||||
INCOME TAX | ||||
Income (loss) before income taxes | (1,268,462) | (984,230) | (881,810) | |
Hong Kong SAR | ||||
INCOME TAX | ||||
Income (loss) before income taxes | (7,930,644) | (14,613,793) | (6,700,069) | |
B.V.I. | ||||
INCOME TAX | ||||
Income (loss) before income taxes | (48,100) | (278,774) | ||
Others | ||||
INCOME TAX | ||||
Income (loss) before income taxes | (840,681) | |||
PRC, excluding Hong Kong S.A.R. | ||||
INCOME TAX | ||||
Income (loss) before income taxes | ¥ (270,748,715) | ¥ (44,894,563) | ¥ 289,836,300 |
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, 2023 CNY (¥) | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CNY (¥) | |
Reconciliation of differences between PRC statutory income tax rate and effective income tax rate | |||||
Computed expected income tax expense (benefit) | ¥ (71,077,803) | ¥ (17,804,968) | ¥ 68,214,254 | ||
Non-PRC entities not subject to income tax | 2,820,038 | 6,581,327 | 4,244,821 | ||
Research and development expenses bonus deduction | (30,807,283) | (34,910,421) | (23,328,287) | ||
Non-deductible share-based compensation expenses | 11,742,974 | 13,866,734 | 11,015,406 | ||
Other non-deductible expenses | 2,491,593 | 638,898 | 723,768 | ||
Preferential tax rate difference | 7,301,540 | (3,075,033) | |||
Tax filing differences | 229,108 | (3,770,720) | 2,682,378 | ||
Change in valuation allowance | 67,106,949 | 16,717,239 | (16,515,732) | ||
Total | ¥ (10,192,884) | $ (1,435,638) | ¥ (21,756,944) | ¥ 47,036,608 | |
Effect of preferential tax rates on basic earnings per Class A and Class B ordinary share | $ / shares | $ (0.05) | $ 0.02 | |||
Effect of preferential tax rates on diluted earnings per Class A and Class B ordinary share | $ / shares | $ (0.05) | $ 0.02 |
INCOME TAX - Deferred income ta
INCOME TAX - Deferred income tax assets and deferred income tax liabilities (Details) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax assets | ||||
Net operating loss carry forwards | ¥ 74,876,303 | ¥ 33,325,461 | ||
Accrued warranty | 3,798,876 | 5,071,844 | ||
Advertising expense | 2,113,991 | |||
Deferred revenue | 8,938,710 | 8,470,357 | ||
Allowance for doubtful accounts | 41,878,340 | 7,037,684 | ||
Lease liabilities | 1,099,451 | 3,334,705 | ||
Write-downs for inventories | 4,529,042 | 825,208 | ||
Less: Valuation allowance | (107,782,306) | (40,764,285) | ¥ (24,508,473) | ¥ (41,219,052) |
Total deferred income tax assets, net | 29,452,407 | 17,300,974 | ||
Deferred income tax liabilities | ||||
Operating lease right of use assets | 1,099,451 | 3,334,705 | ||
Short-term investments | 60,946 | |||
Property, plant and equipment | 9,968,429 | 9,171,103 | ||
Total deferred income tax liabilities | 11,067,880 | 12,566,754 | ||
Net deferred income tax assets | 20,747,021 | 6,132,499 | ||
Net deferred income tax liabilities | ¥ 2,362,494 | ¥ 1,398,279 |
INCOME TAX - Operating loss car
INCOME TAX - Operating loss carry forwards (Details) | Dec. 31, 2023 CNY (¥) |
INCOME TAX | |
Operating loss carry forwards, Total | ¥ 334,224,635 |
Operating loss carry forwards, 2024 | 0 |
Operating loss carry forwards, 2025 | 29,986,636 |
Operating loss carry forwards, 2026 | 21,713,526 |
Operating loss carry forwards, 2027 | 75,298,399 |
Operating loss carry forwards, 2028 | ¥ 207,226,074 |
INCOME TAX - Changes in valuati
INCOME TAX - Changes in valuation allowance (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAX | |||
Balance at the beginning of the year | ¥ 40,764,285 | ¥ 24,508,473 | ¥ 41,219,052 |
Additions | 68,593,841 | 25,114,239 | 5,567,822 |
Reduction | (1,575,820) | (8,858,427) | (22,278,401) |
Balance at the end of the year | ¥ 107,782,306 | ¥ 40,764,285 | ¥ 24,508,473 |
INCOME TAX - PRC Tax Administra
INCOME TAX - PRC Tax Administration and Collection Law (Details) | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
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 INCOME (LOSS) PER ORDINAR_3
NET INCOME (LOSS) PER ORDINARY SHARE - Basic and diluted net income (loss) per share computation (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net income (loss) | ¥ (271,835,982) | $ (38,287,297) | ¥ (49,462,929) | ¥ 225,820,409 |
Denominator: | ||||
Weighted average number of ordinary shares outstanding | 154,795,461 | 154,795,461 | 154,109,051 | 153,174,715 |
Weighted average number of ordinary shares equivalents outstanding | 2,020,644 | 2,020,644 | 1,067,871 | 497,643 |
Denominator for basic net income (loss) per ordinary share | 156,816,105 | 156,816,105 | 155,176,922 | 153,672,358 |
Dilutive effect of outstanding share options | 4,366,690 | |||
Dilutive effect of unvested restricted share units | 2,421,928 | |||
Denominator for diluted net income (loss) per ordinary share | 156,816,105 | 156,816,105 | 155,176,922 | 160,460,976 |
Net income (loss) per ordinary share | ||||
-Basic | (per share) | ¥ (1.73) | $ (0.24) | ¥ (0.32) | ¥ 1.47 |
-Diluted | (per share) | ¥ (1.73) | $ (0.24) | ¥ (0.32) | ¥ 1.41 |
NET INCOME (LOSS) PER ORDINAR_4
NET INCOME (LOSS) PER ORDINARY SHARE - Antidilutive securities (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share options | ||
Antidilutive securities | ||
Antidilutive securities | 3,943,058 | 4,414,608 |
Unvested restricted share units | ||
Antidilutive securities | ||
Antidilutive securities | 2,003,074 | 3,890,658 |
REVENUE INFORMATION - Disaggreg
REVENUE INFORMATION - Disaggregation of revenue (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
REVENUE INFORMATION | ||||
Revenues | ¥ 2,651,757,646 | $ 373,492,253 | ¥ 3,168,597,334 | ¥ 3,704,537,419 |
Electric scooter sales | ||||
REVENUE INFORMATION | ||||
Revenues | 2,358,658,368 | 2,853,895,423 | 3,252,988,512 | |
Accessory and spare parts sales | ||||
REVENUE INFORMATION | ||||
Revenues | 197,634,073 | 242,296,734 | 397,088,122 | |
Service revenues | ||||
REVENUE INFORMATION | ||||
Revenues | ¥ 95,465,205 | ¥ 72,405,177 | ¥ 54,460,785 |
REVENUE INFORMATION - Revenues
REVENUE INFORMATION - Revenues based on geographic areas (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
REVENUE INFORMATION | ||||
Revenues | ¥ 2,651,757,646 | $ 373,492,253 | ¥ 3,168,597,334 | ¥ 3,704,537,419 |
PRC | ||||
REVENUE INFORMATION | ||||
Revenues | 2,247,593,239 | 2,583,843,616 | 3,158,966,932 | |
Europe | ||||
REVENUE INFORMATION | ||||
Revenues | 151,521,237 | 343,157,877 | 430,201,301 | |
Others | ||||
REVENUE INFORMATION | ||||
Revenues | ¥ 252,643,170 | ¥ 241,595,841 | ¥ 115,369,186 |
OPERATING LEASES - Summary (Det
OPERATING LEASES - Summary (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING LEASES | |||
Operating lease cost | ¥ 7,549,026 | ¥ 9,352,700 | ¥ 11,947,682 |
Short-term lease cost | 1,480,259 | ¥ 847,735 | ¥ 1,357,660 |
Leasing costs other than operating leases costs and short-term lease | ¥ 0 |
OPERATING LEASES - Supplemental
OPERATING LEASES - Supplemental information related to operating leases (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
OPERATING LEASES | ||||
Operating lease right-of-use assets | ¥ 76,821,285 | ¥ 86,597,121 | $ 10,820,052 | |
Operating lease liabilities-current (Note 12) | ¥ 5,094,066 | ¥ 7,743,648 | ||
Operating lease liabilities-current, financial statement location | Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIE without recourse to the Company of RMB175,352,229 and RMB151,286,008 as of December 31, 2022 and 2023, respectively) | Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIE without recourse to the Company of RMB175,352,229 and RMB151,286,008 as of December 31, 2022 and 2023, respectively) | Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIE without recourse to the Company of RMB175,352,229 and RMB151,286,008 as of December 31, 2022 and 2023, respectively) | |
Operating lease liabilities-non-current | ¥ 280,421 | ¥ 7,569,128 | $ 39,496 | |
Total operating lease liabilities | 5,374,487 | 15,312,776 | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 7,711,479 | 8,046,828 | ¥ 9,569,023 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 3,744,607 | ¥ 921,405 | 10,201,553 | |
Right-of-use assets obtained in exchange for prepayment for land use right | 26,550,000 | |||
Modification to right-of-use assets | ¥ (5,217,099) | ¥ (11,469,923) | ||
Weighted average remaining lease term | 1 year 1 month 6 days | 1 year 1 month 6 days | ||
Weighted average discount rate | 3.92% | 3.92% |
OPERATING LEASES - Maturities o
OPERATING LEASES - Maturities of lease liabilities (Details) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
OPERATING LEASES | ||
Within 1 year | ¥ 5,176,941 | |
After 1 year but within 2 years | 284,407 | |
Total undiscounted lease payment | 5,461,348 | |
less: Imputed interest | (86,861) | |
Present value of lease liabilities | ¥ 5,374,487 | ¥ 15,312,776 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Current assets | |||||
Cash and cash equivalents | ¥ 872,573,460 | $ 122,899,401 | ¥ 534,286,849 | ||
Total term deposits held | 97,555,565 | 228,589,770 | |||
Restricted cash | 107,666,733 | 15,164,542 | 186,340,321 | ||
Prepayments and other current assets | 195,072,129 | 27,475,335 | 205,695,717 | ||
Total current assets | 1,760,614,198 | 247,977,323 | 2,012,071,029 | ||
Non-current assets | |||||
Other non-current assets | 6,730,378 | 947,954 | 12,683,090 | ||
Total assets | 2,189,331,649 | 308,360,914 | 2,536,697,854 | ||
Current liabilities | |||||
Accrued expenses and other current liabilities | 165,511,396 | 23,311,795 | 192,092,943 | ||
Total liabilities | 1,095,715,415 | 154,328,289 | 1,226,599,977 | ||
Shareholders' equity: | |||||
Additional paid-in capital | 1,964,138,365 | 276,643,103 | 1,915,825,641 | ||
Accumulated other comprehensive loss | (9,495,674) | (1,337,438) | (16,536,686) | ||
Accumulated deficit | (861,126,804) | (121,287,174) | (589,290,822) | ||
Total shareholders' equity | 1,093,616,234 | 154,032,625 | 1,310,097,877 | ¥ 1,264,554,190 | ¥ 993,374,244 |
Total liabilities and shareholders' equity | 2,189,331,649 | 308,360,914 | 2,536,697,854 | ||
Class A Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | 90,031 | 12,681 | 89,428 | ||
Class B Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | 10,316 | $ 1,453 | 10,316 | ||
Parent Company | Reportable Legal Entities | |||||
Current assets | |||||
Cash and cash equivalents | 233,958,655 | 12,375,894 | |||
Total term deposits held | 77,555,565 | 208,589,770 | |||
Restricted cash | 107,521,733 | 176,204,380 | |||
Prepayments and other current assets | 12,035,145 | 12,486,238 | |||
Total current assets | 431,071,098 | 409,656,282 | |||
Non-current assets | |||||
Investment in and amount due from subsidiaries, consolidated VIE and VIE's subsidiaries | 671,329,320 | 906,298,879 | |||
Other non-current assets | 1,219 | ||||
Total assets | 1,102,400,418 | 1,315,956,380 | |||
Current liabilities | |||||
Amount due to subsidiaries, consolidated VIE and VIE's subsidiaries | 4,564,315 | 4,262,270 | |||
Accrued expenses and other current liabilities | 4,219,869 | 1,596,233 | |||
Total liabilities | 8,784,184 | 5,858,503 | |||
Shareholders' equity: | |||||
Additional paid-in capital | 1,964,138,365 | 1,915,825,641 | |||
Accumulated other comprehensive loss | (9,495,674) | (16,536,686) | |||
Accumulated deficit | (861,126,804) | (589,290,822) | |||
Total shareholders' equity | 1,093,616,234 | 1,310,097,877 | |||
Total liabilities and shareholders' equity | 1,102,400,418 | 1,315,956,380 | |||
Parent Company | Reportable Legal Entities | Class A Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | 90,031 | 89,428 | |||
Parent Company | Reportable Legal Entities | Class B Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | ¥ 10,316 | ¥ 10,316 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Results of Operations (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Statements of Results of Operations | ||||
Total operating expenses | ¥ (891,239,250) | $ (125,528,423) | ¥ (775,347,876) | ¥ (609,024,771) |
Interest income | 35,492,190 | 4,998,970 | 12,860,216 | 5,375,969 |
Income (loss) before income taxes | (282,028,866) | (39,722,935) | (71,219,873) | 272,857,017 |
Income tax expense | (10,192,884) | (1,435,638) | (21,756,944) | 47,036,608 |
Net income (loss) | (271,835,982) | $ (38,287,297) | (49,462,929) | 225,820,409 |
Parent Company | Reportable Legal Entities | ||||
Condensed Statements of Results of Operations | ||||
Total operating expenses | (17,739,201) | (15,414,575) | (11,441,931) | |
Share of income (loss) from subsidiaries, consolidated VIE and VIE's subsidiaries | (270,498,551) | (39,264,560) | 235,264,719 | |
Interest income | 16,401,770 | 5,216,206 | 1,997,621 | |
Income (loss) before income taxes | (271,835,982) | (49,462,929) | 225,820,409 | |
Net income (loss) | ¥ (271,835,982) | ¥ (49,462,929) | ¥ 225,820,409 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of cash flows (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | ¥ 93,735,092 | $ 13,202,312 | ¥ (121,856,343) | ¥ 334,174,702 |
Net cash provided by (used in) investing activities | 216,310,708 | 30,466,726 | 397,891,899 | (295,058,974) |
Net cash provided by financing activities | (59,345,977) | (8,358,706) | (17,796,914) | 6,246,384 |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | 8,913,200 | 1,255,398 | 30,043,572 | (8,490,370) |
Net increase in cash, cash equivalents and restricted cash | 259,613,023 | 36,565,730 | 288,282,214 | 36,871,742 |
Cash, cash equivalents and restricted cash at the beginning of the year | 720,627,170 | 101,498,214 | 432,344,956 | 395,473,214 |
Cash, cash equivalents and restricted cash at the end of the year | 980,240,193 | $ 138,063,944 | 720,627,170 | 432,344,956 |
Reportable Legal Entities | Parent Company | ||||
Condensed Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 14,392,402 | (23,565,305) | 25,839,822 | |
Net cash provided by (used in) investing activities | 133,818,900 | (95,940,040) | 16,132,750 | |
Net cash provided by financing activities | 654,023 | 2,203,086 | 6,246,384 | |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | 4,034,789 | 21,972,182 | (6,107,381) | |
Net increase in cash, cash equivalents and restricted cash | 152,900,114 | (95,330,077) | 42,111,575 | |
Cash, cash equivalents and restricted cash at the beginning of the year | 188,580,274 | 283,910,351 | 241,798,776 | |
Cash, cash equivalents and restricted cash at the end of the year | ¥ 341,480,388 | ¥ 188,580,274 | ¥ 283,910,351 |