Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | PUYI, INC. |
Entity Central Index Key | 0001750264 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Common Stock, Shares Outstanding | 90,472,014 |
Entity File Number | 001-38813 |
Entity Interactive Data Current | Yes |
Entity Incorporation State Country Code | E9 |
Document Transition Report | false |
Document Annual Report | true |
Document Shell Company Report | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Position ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ | ¥ 378,445 | ¥ 103,228 | |
Restricted cash | ¥ | 51,823 | 8,772 | |
Accounts receivable, net | ¥ | 27,767 | 30,757 | |
Short term investments | ¥ | 2,000 | 5,010 | |
Commercial acceptance notes | ¥ | 10,642 | ||
Other receivables | ¥ | 6,499 | 5,729 | |
Short-term loans receivable | ¥ | 50,356 | ||
Amount due from related parties | ¥ | 590 | 80 | |
Total current assets | ¥ | 467,124 | 214,574 | |
Long-term investments | ¥ | 2,000 | 5,000 | |
Property and equipment, net | ¥ | 4,026 | 890 | |
Intangible assets, net | ¥ | 733 | 700 | |
Long-term prepayments | ¥ | 393 | 461 | |
Deferred tax assets | ¥ | 5,133 | 4,241 | |
Total assets | ¥ | 479,409 | 225,866 | |
Current liabilities: | |||
Accounts payable | ¥ | 5,873 | 3,677 | |
Investors' deposit | ¥ | 51,823 | 8,772 | |
Other payables and accrued expenses | ¥ | 8,657 | 6,129 | |
Due to shareholder for acquisition of subsidiaries | ¥ | 2,116 | ||
Income taxes payable | ¥ | 2,820 | ||
Other tax liabilities | ¥ | 9,300 | 8,700 | |
Advance receipts | ¥ | 180 | ||
Total current liabilities | ¥ | 75,833 | 32,214 | |
Total liabilities | ¥ | 75,833 | 32,214 | |
Commitments and contingencies | ¥ | |||
EQUITY: | |||
Ordinary shares (Authorized shares: 2,000,000,000 at US$0.001 each; issued and outstanding shares: 80,000,000 and 90,472,014 as of June 30, 2018 and 2019, respectively) | ¥ | 600 | 529 | |
Additional paid-in capital | ¥ | 224,702 | 62,705 | |
Statutory reserves | ¥ | 19,824 | 14,152 | |
Retained earnings | ¥ | 155,266 | 107,407 | |
Accumulated other comprehensive income | ¥ | 11 | ||
Total Puyi Inc.'s equity | ¥ | 400,403 | 184,793 | |
Non-controlling interests | ¥ | 3,173 | 8,859 | |
Total equity | ¥ | 403,576 | 193,652 | |
Total liabilities and equity | ¥ | ¥ 479,409 | ¥ 225,866 | |
US$ | |||
Current assets: | |||
Cash and cash equivalents | $ | $ 55,127 | ||
Restricted cash | $ | 7,549 | ||
Accounts receivable, net | $ | 4,045 | ||
Short term investments | $ | 291 | ||
Commercial acceptance notes | $ | |||
Other receivables | $ | 947 | ||
Short-term loans receivable | $ | |||
Amount due from related parties | $ | 86 | ||
Total current assets | $ | 68,045 | ||
Long-term investments | $ | 291 | ||
Property and equipment, net | $ | 586 | ||
Intangible assets, net | $ | 107 | ||
Long-term prepayments | $ | 57 | ||
Deferred tax assets | $ | 748 | ||
Total assets | $ | 69,834 | ||
Current liabilities: | |||
Accounts payable | $ | 855 | ||
Investors' deposit | $ | 7,549 | ||
Other payables and accrued expenses | $ | 1,261 | ||
Due to shareholder for acquisition of subsidiaries | $ | |||
Income taxes payable | $ | |||
Other tax liabilities | $ | 1,355 | ||
Advance receipts | $ | 26 | ||
Total current liabilities | $ | 11,046 | ||
Total liabilities | $ | 11,046 | ||
Commitments and contingencies | $ | |||
EQUITY: | |||
Ordinary shares (Authorized shares: 2,000,000,000 at US$0.001 each; issued and outstanding shares: 80,000,000 and 90,472,014 as of June 30, 2018 and 2019, respectively) | $ | 87 | ||
Additional paid-in capital | $ | 32,732 | ||
Statutory reserves | $ | 2,888 | ||
Retained earnings | $ | 22,617 | ||
Accumulated other comprehensive income | $ | 2 | ||
Total Puyi Inc.'s equity | $ | 58,326 | ||
Non-controlling interests | $ | 462 | ||
Total equity | $ | 58,788 | ||
Total liabilities and equity | $ | $ 69,834 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) | Jun. 30, 2019$ / sharesshares | Jun. 30, 2018$ / sharesshares |
Ordinary shares authorized | 2,000,000,000 | 2,000,000,000 |
Ordinary shares, issued | 90,472,014 | 80,000,000 |
Ordinary shares, outstanding | 90,472,014 | 80,000,000 |
US$ | ||
Ordinary shares, par value | $ / shares | $ 0.001 | $ 0.001 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | Jun. 30, 2018CNY (¥)¥ / sharesshares | |
Net revenues: | |||
Wealth management | ¥ | ¥ 193,082 | ¥ 140,403 | |
Corporate financing | ¥ | 6,271 | 13,710 | |
Asset management | ¥ | 2,767 | 103 | |
Information technology and others | ¥ | 1,111 | 11,595 | |
Total net revenues | ¥ | 203,231 | 165,811 | |
Operating costs and expenses: | |||
Cost of sales | ¥ | (31,092) | (28,825) | |
Selling expenses | ¥ | (67,487) | (45,470) | |
General and administrative expenses | ¥ | (48,572) | (28,623) | |
Total operating costs and expenses | ¥ | (147,151) | (102,918) | |
Income from operations | ¥ | 56,080 | 62,893 | |
Other income, net: | |||
Investment income | ¥ | 172 | 5,144 | |
Interest income | ¥ | 5,956 | 3,640 | |
Interest expenses | ¥ | (1,048) | ||
Other, net | ¥ | 259 | 201 | |
Income before income taxes | ¥ | 61,419 | 71,878 | |
Income tax expense | ¥ | (9,396) | (8,261) | |
Net income | ¥ | 52,023 | 63,617 | |
Less: net income (loss) attributable to non-controlling interests | ¥ | (1,508) | (979) | |
Net income attributable to Puyi Inc.'s shareholders | ¥ | ¥ 53,531 | ¥ 64,596 | |
Net income per share: | |||
Basic | ¥ / shares | ¥ 0.630 | ¥ 0.807 | |
Diluted | ¥ / shares | ¥ 0.630 | ¥ 0.807 | |
Weighted average number of shares used in computation: | |||
Basic | shares | 84,997,628 | 84,997,628 | 80,000,000 |
Diluted | shares | 84,997,628 | 84,997,628 | 80,000,000 |
Net income | ¥ | ¥ 52,023 | ¥ 63,617 | |
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments | ¥ | 11 | ||
Total Comprehensive income | ¥ | 52,034 | 63,617 | |
Less: Comprehensive income attributable to the non-controlling interests | ¥ | (1,508) | (979) | |
Comprehensive income attributable to Puyi Inc.'s shareholders | ¥ | ¥ 53,542 | ¥ 64,596 | |
ADS | |||
Net income per share: | |||
Basic | ¥ / shares | ¥ 0.945 | ¥ 1.211 | |
Diluted | ¥ / shares | ¥ 0.945 | ¥ 1.211 | |
US$ | |||
Net revenues: | |||
Wealth management | $ | $ 28,126 | ||
Corporate financing | $ | 913 | ||
Asset management | $ | 403 | ||
Information technology and others | $ | 162 | ||
Total net revenues | $ | 29,604 | ||
Operating costs and expenses: | |||
Cost of sales | $ | (4,529) | ||
Selling expenses | $ | (9,831) | ||
General and administrative expenses | $ | (7,075) | ||
Total operating costs and expenses | $ | (21,435) | ||
Income from operations | $ | 8,169 | ||
Other income, net: | |||
Investment income | $ | 25 | ||
Interest income | $ | 868 | ||
Interest expenses | $ | (153) | ||
Other, net | $ | 38 | ||
Income before income taxes | $ | 8,947 | ||
Income tax expense | $ | (1,369) | ||
Net income | $ | 7,578 | ||
Less: net income (loss) attributable to non-controlling interests | $ | (220) | ||
Net income attributable to Puyi Inc.'s shareholders | $ | $ 7,798 | ||
Net income per share: | |||
Basic | $ / shares | $ 0.092 | ||
Diluted | $ / shares | $ 0.092 | ||
Weighted average number of shares used in computation: | |||
Basic | shares | 84,997,628 | 84,997,628 | |
Diluted | shares | 84,997,628 | 84,997,628 | |
Net income | $ | $ 7,578 | ||
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments | $ | 2 | ||
Total Comprehensive income | $ | 7,580 | ||
Less: Comprehensive income attributable to the non-controlling interests | $ | (220) | ||
Comprehensive income attributable to Puyi Inc.'s shareholders | $ | $ 7,800 | ||
US$ | ADS | |||
Net income per share: | |||
Basic | $ / shares | $ 0.138 | ||
Diluted | $ / shares | $ 0.138 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity ¥ in Thousands, $ in Thousands | Share CapitalCNY (¥)shares | Share CapitalUS$USD ($)shares | Additional Paid-in CapitalCNY (¥) | Additional Paid-in CapitalUS$USD ($) | Statutory ReservesCNY (¥) | Statutory ReservesUS$USD ($) | Retained EarningsCNY (¥) | Retained EarningsUS$USD ($) | Accumulated Other Comprehensive lossCNY (¥) | Accumulated Other Comprehensive lossUS$USD ($) | Non-controlling InterestsCNY (¥) | Non-controlling InterestsUS$USD ($) | CNY (¥) | US$USD ($) | |
Balance at Jun. 30, 2017 | ¥ 529 | ¥ 91,220 | ¥ 8,328 | ¥ 48,635 | ¥ 9,838 | ¥ 158,550 | |||||||||
Balance, shares at Jun. 30, 2017 | shares | [1] | 80,000,000 | |||||||||||||
Net income | 64,596 | (979) | 63,617 | ||||||||||||
Provision for statutory reserves | 5,824 | (5,824) | |||||||||||||
Acquisition of Zhonghui | 28,515 | 28,515 | |||||||||||||
Balance at Jun. 30, 2018 | ¥ 529 | 62,705 | 14,152 | 107,407 | 8,859 | 184,793 | |||||||||
Balance, shares at Jun. 30, 2018 | shares | 80,000,000 | ||||||||||||||
Net income | 53,531 | (1,508) | 52,023 | $ 7,578 | |||||||||||
Provision for statutory reserves | 5,672 | (5,672) | |||||||||||||
Capital injection by founding shareholders | 530 | 530 | |||||||||||||
Purchase of NCIs | (1,821) | (8,209) | (10,030) | ||||||||||||
Issuance of shares to Fanhua In | ¥ 28 | 10,001 | 10,029 | ||||||||||||
Issuance of shares to Fanhua In, shares | shares | 4,033,600 | ||||||||||||||
Proceeds from IPO | ¥ 43 | 153,287 | 153,330 | ||||||||||||
Proceeds from IPO, shares | shares | 6,438,414 | ||||||||||||||
Acquisition of Zhonghui | 1,581 | 1,581 | |||||||||||||
Capital injection by minority Zhonghui's minority shareholders | 2,450 | 2,450 | |||||||||||||
Other comprehensive income : foreign currency translation adjustments | 11 | 11 | |||||||||||||
Balance at Jun. 30, 2019 | ¥ 600 | $ 87 | ¥ 224,702 | $ 32,732 | ¥ 19,824 | $ 2,888 | ¥ 155,266 | $ 22,617 | ¥ 11 | $ 2 | ¥ 3,173 | $ 462 | ¥ 400,403 | $ 58,326 | |
Balance, shares at Jun. 30, 2019 | shares | 90,472,014 | 90,472,014 | |||||||||||||
[1] | The shares are presented on a retroactive basis to reflect the nominal share issuance. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | |
Cash flows from operating activities | |||
Net income | ¥ | ¥ 52,023 | ¥ 63,617 | |
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Depreciation | ¥ | 1,122 | 604 | |
Amortization of intangible assets | ¥ | 620 | 1,261 | |
Provision on uncertain tax liability | ¥ | 600 | ||
Investment income | ¥ | (172) | (5,144) | |
Interest income | ¥ | (1,048) | (3,640) | |
Interest Expense | ¥ | 1,048 | ||
Gain on purchase of Subsidiary | ¥ | (14) | ||
Net foreign exchange gain | ¥ | (2,416) | ||
Allowance for deferred tax assets | ¥ | 929 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | ¥ | 2,990 | (7,640) | |
Other receivables | ¥ | (366) | (899) | |
Accounts payable | ¥ | 2,196 | (9,457) | |
Investor's deposit and other payables and accrued expenses | ¥ | 45,350 | 5,309 | |
Advance receipts | ¥ | 180 | ||
Deferred tax assets | ¥ | (1,821) | (229) | |
Income taxes payable | ¥ | (3,179) | 1,134 | |
Net cash provided by operating activities | ¥ | 98,040 | 44,916 | |
Cash flows from investing activities: | |||
Proceeds from disposal of short-term investments and commercial acceptance notes | ¥ | 16,841 | 1,100,581 | |
Purchase of short term investment | ¥ | (291) | (1,094,924) | |
Purchase of property and equipment | ¥ | (4,251) | (473) | |
Purchase of long-term investment | ¥ | (5,000) | ||
Proceeds from disposal of long-term investments | ¥ | 3,011 | ||
Prepaid for intangible assets | ¥ | (225) | (461) | |
Acquired intangible assets | ¥ | (360) | (458) | |
Distribution of short-term loans receivable | ¥ | (139,000) | ||
Collection of short-term loans receivable | ¥ | 50,667 | 90,361 | |
Acquisition of subsidiaries from principal shareholder | ¥ | (2,116) | (26,399) | |
Acquisition of subsidiaries | ¥ | (1,227) | ||
Short-term loans repaid by related parties | ¥ | 490 | 85,820 | |
Net cash provided by investing activities | ¥ | 62,539 | 10,047 | |
Cash flows from financing activities: | |||
Capital injection by founding shareholders | ¥ | 530 | ||
Proceeds from IPO | ¥ | 153,330 | ||
Purchase of NCIs | ¥ | (10,029) | ||
Proceed from shares issued to Fanhua Inc. | ¥ | 10,029 | ||
Capital injection by minority shareholders | ¥ | 2,450 | ||
Borrowing from related parties | ¥ | 50,000 | ||
Repayment of borrowing from related parties | ¥ | (51,048) | ||
Net cash provided by financing activities | ¥ | 155,262 | ||
Net increase in cash and cash equivalents, and restricted cash | ¥ | 315,841 | 54,963 | |
Cash and cash equivalents, and restricted cash at beginning of year | ¥ | 112,000 | 57,037 | |
Effect of exchange rate changes on cash and cash equivalents | ¥ | 2,427 | ||
Cash and cash equivalents, and restricted cash at end of year | ¥ | 430,268 | 112,000 | |
Cash paid for: | |||
Interests | ¥ | 1,048 | ||
Income taxes | ¥ | ¥ 12,869 | ¥ 7,527 | |
US$ | |||
Cash flows from operating activities | |||
Net income | $ | $ 7,578 | ||
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Depreciation | $ | 163 | ||
Amortization of intangible assets | $ | 90 | ||
Provision on uncertain tax liability | $ | 87 | ||
Investment income | $ | (25) | ||
Interest income | $ | (153) | ||
Interest Expense | $ | 153 | ||
Gain on purchase of Subsidiary | $ | (2) | ||
Net foreign exchange gain | $ | (352) | ||
Allowance for deferred tax assets | $ | 135 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | $ | 436 | ||
Other receivables | $ | (53) | ||
Accounts payable | $ | 320 | ||
Investor's deposit and other payables and accrued expenses | $ | 6,606 | ||
Advance receipts | $ | 26 | ||
Deferred tax assets | $ | (265) | ||
Income taxes payable | $ | (463) | ||
Net cash provided by operating activities | $ | 14,281 | ||
Cash flows from investing activities: | |||
Proceeds from disposal of short-term investments and commercial acceptance notes | $ | 2,453 | ||
Purchase of short term investment | $ | (42) | ||
Purchase of property and equipment | $ | (619) | ||
Purchase of long-term investment | $ | |||
Proceeds from disposal of long-term investments | $ | 439 | ||
Prepaid for intangible assets | $ | (33) | ||
Acquired intangible assets | $ | (52) | ||
Distribution of short-term loans receivable | $ | |||
Collection of short-term loans receivable | $ | 7,380 | ||
Acquisition of subsidiaries from principal shareholder | $ | (308) | ||
Acquisition of subsidiaries | $ | (179) | ||
Short-term loans repaid by related parties | $ | 71 | ||
Net cash provided by investing activities | $ | 9,110 | ||
Cash flows from financing activities: | |||
Capital injection by founding shareholders | $ | 77 | ||
Proceeds from IPO | $ | 22,335 | ||
Purchase of NCIs | $ | (1,461) | ||
Proceed from shares issued to Fanhua Inc. | $ | 1,461 | ||
Capital injection by minority shareholders | $ | 357 | ||
Borrowing from related parties | $ | 7,283 | ||
Repayment of borrowing from related parties | $ | (7,436) | ||
Net cash provided by financing activities | $ | 22,616 | ||
Net increase in cash and cash equivalents, and restricted cash | $ | 46,007 | ||
Cash and cash equivalents, and restricted cash at beginning of year | $ | 16,315 | ||
Effect of exchange rate changes on cash and cash equivalents | $ | 354 | ||
Cash and cash equivalents, and restricted cash at end of year | $ | 62,676 | ||
Cash paid for: | |||
Interests | $ | 153 | ||
Income taxes | $ | $ 1,875 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Jun. 30, 2019 | |
Organization And Principal Activities | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Puyi Inc. ("Puyi", or the "Company"), whose controlling shareholder is Mr. Yu Haifeng, is a holding company incorporated on August 6, 2018 in Cayman Islands whose operations are conducted through its subsidiaries and variable interest entity ("VIE"), primarily provides wealth management services to China's large and growing mass affluent population, whom are defined as those with RMB 600 to RMB 6 million in investable assets. Puyi Group Limited ("Puyi Group") is a limited company established under the laws of the British Virgin Islands (the "BVI") on July 24, 2018. Puyi Holdings (Hong Kong) Limited ("Puyi HK") is a limited company established under the laws of Hong Kong on July 25, 2018. Puyi Enterprises Management Consulting Co., Ltd. ("Puyi Consulting"), which is the WFOE of Puyi HK, was incorporated in Chengdu, Sichuan, PRC in August 2018, and is engaged in providing a wide range of financing services to corporate borrowers, including product structure design, introduction of potential investors, and compliance and risk management services. Chengdu Puyi Bohui Information Technology Co., Ltd ("Puyi Bohui"), whose controlling shareholder is Mr. Yu Haifeng, was incorporated in Chengdu, PRC in April 2012, and is engaged in providing information technical support to all of its PRC subsidiaries, which are described below. Fanhua Puyi Fund Distribution Co., Ltd. ("Puyi Fund") was incorporated in Chengdu, PRC in November 2010, and is engaged in distributing privately raised fund products and asset management plans issued by securities firms through its online and offline distribution channels across PRC, to earn distribution commission fees and performance-based fees from the fund product issuers. Shenzhen Puyi Zhongxiang Information Technology Co., Ltd. ("Puyi Zhongxiang") was incorporated in Shenzhen, PRC in April 2014, and is engaged in distributing exchange administered financial products through its online information display platform which is mainly accessible by its registered investors. Puyi Zhongxiang earns distribution commission fees from the issuers of these products. Guangdong Puyi Asset Management Co., Ltd ("Puyi Asset") was incorporated in Shenzhen, PRC in May 2013, and is engaged in managing privately raised funds, from which Puyi Asset earns fund management fee based on the size of the fund and carried interest fee based on the performance of the funds managed. Puyi Asset Management currently has one subsidiary, Shenzhen Qianhai Zhonghui Huiguan Investment Management Co., Ltd. ("Zhonghui"), in which Puyi Asset Management holds 51% interest (acquired in July 2018), which primarily operates our non-performing loan management business. Chongqing Fengyi Management Consulting Co., Ltd. ("Chongqing Fengyi") was incorporated in Chongqing, PRC in December 2016, and is engaged in corporate financing services by providing comprehensive financing solutions to corporate borrowers, from which Chongqing Fengyi earns service fees based on the amount of financing received by the corporate borrowers. Shenzhen Baoying Factoring Co., Ltd. ("Shenzhen Baoying") was incorporated in Shenzhen, PRC in May 2018, and is engaged in providing factoring services. Reorganization The Company undertook a reorganization and became the ultimate holding company of Puyi Group, Puyi HK, WFOE and Puyi Bohui and its subsidiaries, which were all controlled by the same shareholders before and after the Reorganization. Details of the subsidiaries and VIE of the Company are set out below: Name Date of incorporation/acquired Place of incorporation Percentage of effective ownership Principal Activities Wholly owned subsidiaries Puyi Group July 2018 BVI 100 % Holding company Puyi Holdings (Hong Kong) Limited ("Puyi HK") July 2018 Hong Kong 100 % Holding company Puyi Enterprises Management Consulting Co., Ltd. ("Puyi Consulting" or the Wholly Foreign-Owned Enterprise "WFOE") August 2018 Chengdu 100 % WFOE Variable Interest Entities ("VIEs") Puyi Bohui April 2012 Chengdu 100 % Information technology Puyi Fund November 2010 Chengdu 100 % Fund product distribution Puyi Zhongxiang April 2014 Shenzhen 100 % Financial product distribution Puyi Asset May 2013 Shenzhen 100 % Asset management Chongqing Fengyi December 2016 Chongqing 100 % Corporate financing business Shenzhen Baoying May 2018 Shenzhen 100 % Factoring Zhonghui July 2018 Shenzhen 51 % Asset management Effective on September 6, 2018, shareholders of Puyi Bohui and WFOE entered into a series of contractual agreements ("VIE Agreements" which are described below). As a result, the Company, through its wholly owned subsidiaries Puyi Group, Puyi HK and WFOE, has been determined to be the primary beneficiary of Puyi Bohui and its subsidiaries; and Puyi Bohui and its subsidiaries became VIEs of the Company. Accordingly, the Company consolidates the operations, assets and liabilities of Puyi Bohui and its subsidiaries. Immediately before and after the Reorganization completed on September 6, 2018 as describe above, the Company together with its wholly-owned subsidiary Puyi Group, Puyi HK and WFOE, and its VIE were effectively controlled by the same shareholders; therefore, the reorganization was accounted for as a recapitalization. The accompanying consolidated financial statements have been prepared as if the current corporate structure has been in existence throughout the periods presented. The consolidation of the Company and its subsidiaries and VIE has been accounted for at historical cost as of the beginning of the first period presented in the accompanying financial statements. Foreign ownership of certain parts of the Company's businesses including fund management services is subject to restrictions under current PRC laws and regulations. Puyi Inc. is a Cayman Islands company and the government of the Cayman Islands has not entered into a memorandum of understanding on bilateral regulatory cooperation with the CSRC. Accordingly, the Company is not eligible to conduct the fund management business by directly establishing a foreign-invested fund management company. To comply with PRC laws and regulations and utilize the ability in providing fund management services, the Company currently conduct the business activities through the VIE, Puyi Bohui and its subsidiaries. WFOE has entered into the following contractual arrangements with Puyi Bohui and its shareholders, which enable the Company to (i) exercise effective control over Puyi Bohui, (ii) receive substantially all of the economic benefits of Puyi Bohui, and (iii) have an exclusive option to purchase all or part of the equity interests and assets in Puyi Bohui when and to the extent permitted by PRC law. As a result of these contractual arrangements, the Company is fully and exclusively responsible for the management of Puyi Bohui, assumes all of risk of losses of Puyi Bohui and has the exclusive right to exercise all voting rights of Puyi Bohui's shareholders. Therefore, the Company is considered the primary beneficiary of Puyi Bohui and has consolidated Puyi Bohui's assets, liabilities, results of operations, and cash flows in the accompanying consolidated financial statements under U.S. GAAP. (1) Power of Attorney. On September 6, 2018, each shareholder of Puyi Bohui, executed Power of Attorney agreement with WFOE and Puyi Bohui, whereby shareholders of Puyi Bohui irrevocably appoint and constitute WFOE as their attorney-in-fact to exercise on the shareholders' behalf any and all rights that shareholders of Puyi Bohui have in respect of their equity interests in Puyi Bohui. These two Power of Attorney documents became effective on September 6, 2019 and will remain irrevocable and continuously effective and valid as long as the original shareholders of Puyi Bohui remains as the Shareholders of Puyi Bohui. (2) Exclusive Option Agreement. Puyi Bohui and its shareholders have entered into an Exclusive Option Agreement with WFOE on September 6, 2018. Under the Exclusive Option Agreement, the Puyi Bohui shareholders irrevocably granted WFOE (or its designee) an irrevocable and exclusive option to purchase, to the extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in Puyi Bohui. According to the Exclusive Option Agreement, the purchase price to be paid by the Company to each shareholder of the Puyi Bohui will be the RMB10 or certain other amount permitted by applicable PRC Law at the time when such share transfer occurs. The Exclusive Option Agreement became effective on September 6, 2019 and will remain effective permanently. (3) Exclusive Technical and Consulting Services Agreement. On September 6, 2018, WFOE entered into an Exclusive Technical and Consulting Services Agreement with Puyi Bohui to enable WFOE to receive substantially all of the assets and business of Puyi Bohui in China. Under this Agreement, WFOE has the exclusive right to provide Puyi Bohui with comprehensive business support, technical and consulting services, and other services in relation to the principal business during the term of this Agreement utilizing its own advantages in management consulting, and technology and information. WFOE, or any other party designated by WFOE, may enter into further technical and consulting service agreements with Puyi Bohui, which shall provide the specific contents, manner, personnel, and fees for the specific consulting service. This Agreement became effective on September 6, 2018 and will remain effective unless otherwise terminated when all of the equity interest in Puyi Bohui held by its shareholders and/or all the assets of Puyi Bohui have been legally transferred to WFOE and/or its designee upon the approval of the board of directors of Puyi, Inc., in accordance with an Exclusive Option Agreement entered among WFOE, Puyi Bohui and its shareholders. (4) Equity Interest Pledge Agreement. Under the Equity Interest Pledge Agreement dated September 6, 2018 among Puyi Bohui, each of the shareholders of Puyi Bohui and WFOE, each shareholder of Puyi Bohui agreed to pledge all of his or her equity interest in Puyi Bohui to WFOE to secure the performance of Puyi Bohui's obligations under the Exclusive Technical and Consulting Services Agreement and any such agreements to be entered into in the future. Under the terms of the agreement, in the event that Puyi Bohui or its shareholders breach their respective contractual obligations under the Exclusive Technical and Consulting Services Agreement, WFOE, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests. The Puyi Bohui shareholders also agreed that upon occurrence of any event of default, as set forth in the Equity Interest Pledge Agreement, WFOE is entitled to dispose of the pledged equity interest in accordance with applicable PRC laws. Shareholders of Puyi Bohui agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on their equity interests in Puyi Bohui without the prior written consent of WFOE. The Pledge became effective on such date when the pledge of the Equity Interest contemplated herein is registered with relevant administration for industry and commerce (the "AIC") and will remain effective until all payments due under the Exclusive Technical and Consulting Services Agreement has been fulfilled by Puyi Bohui, or upon the transfer of equity interests under the Exclusive Option Agreement entered into among the parties of this agreement. (5) Spousal Consent Letters. On September 6, 2018, each spouse of the shareholders of Puyi Bohui executed a Spousal Consent, pursuant to which the spouses irrevocably agreed that the equity interest in Puyi Bohui held by them and registered in their names will be disposed of pursuant to the Equity Interest Pledge Agreement, the Exclusive Option Agreement and the Powers of Attorney. Each of the spouses of the shareholders agreed not to assert any rights over the equity interest in Puyi Bohui held by their respective spouses. In addition, in the event that any spouse obtains any equity interest in Puyi Bohui through the respective shareholder for any reason, the spouse agreed to be bound by the contractual arrangements. Risks in relation to the VIE structure The Company believes that the contractual arrangements with its VIE and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company's ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company's PRC subsidiary and VIE; ● discontinue or restrict the operations of any related-party transactions between the Company's PRC subsidiary and VIE; ● limit the Company's business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company's PRC subsidiary and VIE may not be able to comply; ● require the Company or the Company's PRC subsidiary and VIE to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company's use of the proceeds of the additional public offering to finance the Company's business and operations in China. The Company's ability to conduct its privately raised fund management business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE in its consolidated financial statements as it may lose the ability to exert effective control over the VIE and their respective shareholders and it may lose the ability to receive economic benefits from the VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIE. The interests of the shareholders of VIE may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing VIE not to pay the service fees when required to do so. The Company cannot assure that when conflicts of interest arise, shareholders of VIE will act in the best interests of the Company or that conflicts of interests will be resolved in the Company's favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest the shareholders of VIE may encounter in its capacity as beneficial owners and directors of VIE, on the one hand, and as beneficial owners and directors of the Company, on the other hand. The Company believes the shareholders of VIE will not act contrary to any of the contractual arrangements and the exclusive option agreements provide the Company with a mechanism to remove the current shareholders of VIE should they act to the detriment of the Company. The Company relies on certain current shareholders of VIE to fulfill their fiduciary duties and abide by laws of the PRC and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and the shareholders of VIE, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. Total assets and liabilities presented on the Company's consolidated balance sheets and sales, expense, net income presented on Consolidated Statement of Income as well as the cash flow from operating, investing and financing activities presented on the Consolidated Statement of Cash Flows are substantially the financial position, operation and cash flow of the Company's VIE Puyi Bohui and its subsidiaries. The following financial statements amounts and balances of the VIE were included in the accompanying consolidated financial statements as of June 30, 2018 and 2019 and for the years ended June 30, 2018 and 2019. As of June 30, 2018 2019 2019 RMB RMB US$ Total assets 225,866 479,409 69,834 Total liabilities 32,214 75,833 11,046 Years ended June 30, 2018 2019 2019 RMB RMB US$ Net revenues 165,811 203,231 29,604 Net income 63,617 52,023 7,578 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation and consolidation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The consolidated financial statements include the financial statements of the Company, all its majority-owned subsidiaries and those VIEs of which the Company is the primary beneficiary, from the dates they were acquired or incorporated. All intercompany balances and transactions have been eliminated in consolidation. (b) Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant accounting estimates reflected in the Company's consolidated financial statements include but are not limited to estimates and judgments applied in the allowance for doubtful loans and receivables, impairment assessment of long-lived assets, valuation allowance for deferred tax assets, fair value measurement of investments, and uncertain tax positions, assumptions related to the consolidation of entities in which the Group holds variable interests. Actual results could differ from those estimates and judgments. (c) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash with original maturity of three months or less, and have insignificant risk of changes in value related to changes in interest rates. (d) Restricted cash Restricted cash were mainly the investors' uninvested cash balances temporarily deposited in the Company's bank account. These cash balances were under the custody and supervision of the designated financial institution as required by China Securities Regulatory Commission, for the purpose of preventing abusive use of investors' funds. (e) Accounts receivable, other receivables, and amount due from related parties, net Accounts receivable, other receivables and amount due from related parties are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable, other receivables and due from related parties. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company did not have any off-balance-sheet credit exposure relating to its customers, suppliers or others. For the years ended June 30, 2018 and 2019, the Company did not record any allowances for doubtful accounts against its accounts receivable, other receivables and amount due from related parties nor did it charge off any such amounts, respectively. (f) Short-term loans receivable The Company recognizes the contractual right to receive money on demand or on fixed or determinable dates as loans receivable. For those that the contractual maturity date is less than one year, the Company records as short-term loans receivable. The Company recognized interest income on an accrue basis using the straight-line method over the fixed or determinable dates. (g) Investments The Company accounts for the investments pursuant to ASC topic 321, Investments-equity securities. The Company records investments in certain private equity funds, in which the Company has insignificant The Company records investments in certain private equity funds, in which the Company has insignificant equity interest but acts as a general partner, as short-term investments on the consolidated balance sheet under the equity method. These investments are classified as short-term The Company reviews its investments except for those classified as trading securities for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the cost of an investment exceeds the investment's fair value, the Company considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Company's intent and ability to hold the investment to determine whether an other-than-temporary impairment has occurred. The Company recognizes other-than-temporary impairment in earnings if it has the intent to sell the investments or if it is more-likely-than-not that it will be required to sell the investments before recovery of its amortized cost basis. Additionally, the Company evaluates expected cash flows to be received and determines if credit-related losses on debt securities exist, which are considered to be other-than-temporary, should be recognized in earnings. If the investment's fair value is less than the cost of an investment and the Company determines the impairment to be other-than-temporary, the Company recognizes an impairment loss based on the fair value of the investment. The Company has not recorded an other-than-temporary impairment for each of the years ended June 30, 2018 and 2019. (h) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives, without residual value: Estimated useful life Office equipment, furniture and fixtures 3-5 years Leasehold improvements Shorter of the remaining lease terms and estimated useful lives (i) Intangible assets, net Intangible assets represent software and operating system, including the office automatic system and transaction platform and fund distribution systems that were purchased from external third-party vendors. The intangible assets were initially recorded at historic acquisition costs, and amortized on a straight-line basis over estimated useful lives for three years. Costs associated with the engineering and technical headcounts responsible for software development, as well as their associated costs, are expensed as incurred. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The Company may rely on a qualitative assessment when performing its intangible asset impairment test. Otherwise, the impairment evaluation is performed at the lowest level of identifiable cash flows independent of other assets. (j) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Company assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition where the fair value is lower than the carrying value, measurement of an impairment loss is recognized in the consolidated statements of operations and comprehensive income (loss) for the difference between the fair value, using the expected future discounted cash flows, and the carrying value of the assets. No impairment of long-lived assets was recognized for the years ended June 30, 2018 and 2019. (k) Revenue recognition On July 1, 2018, the Company adopted ASC 606 "Revenue from Contracts with Customers", applying the modified retrospective method. The adoption didn't result in a material adjustment to our accumulated deficit as of July 1, 2018. Accordingly, revenue for the fiscal year ended June 30, 2019 was presented under ASC 606, while comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company generates revenues mainly from wealth management, corporate financing and asset management. The revenues are accounted for as contracts with customers. Under the guidance for contracts with customers, we are required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) we satisfy its performance obligations. In determining the transaction price, we have included variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur. Revenues are recorded net of sales related taxes and surcharges. Wealth management Revenue from wealth management mainly includes distribution commissions and performance-based fees, in a typical arrangement in which the Company serves as distributor. Distribution commissions Distribution commissions are primarily generated from 1) online distributions of financial products, which include publicly raised fund products and other financial products (mostly exchange administered products) and 2) offline distribution of privately-raised fund products. The Company enters into distribution agreements with financial product issuers which specify the key terms and conditions of the arrangement. Such agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. For privately raised funds in the lockup period and part of exchange administrative financial products, upon establishment of a financial product, the Company charges a one-time distribution commission fee against the issuer by multiplying a pre-agreed annualized charge rate with the amount of products distributed through either online platform or offline sales network, prorated by the actual period length of the product. The Company defines the "establishment of a financial product" for its revenue recognition purpose at the time when both of the following two criteria are met: (1) the product purchaser (the "investor") has entered into a purchase or subscription contract with the relevant product issuer and the investor has transferred the subscription fund to an escrow account designated by the product issuer and (2) the product issuer has issued a formal notice to confirm the establishment of a financial product. For privately raised funds after lockup period and part of exchange administrative financial products, because the amount of investment in the financial products is variable every day, the commission revenue is recognized as a percentage of the net asset value of the total investment in the financial products, calculated daily. Performance-based distribution fees Performance-based distribution fees are contributed by the offline distributed privately raised fund products. The Company earns performance-based distribution fees from the issuers of the privately raised fund products, which are dependent on the extent by which the fund's investment performance exceeds a certain threshold at the end of the contract term. Such performance-based fee is typically recognized and distributed at a point of time, usually at the end of the contract term when the cumulative return of the fund can be determined, and is not subject to clawback provisions. Corporate financing The Company provides comprehensive financing solutions to corporate borrowers, including reference of sources and channels of funding. The contract between the borrower and the Company clearly states the financing amount, the agreed financing days, and the annualized charge rate. Although the performance obligation is fulfilled when borrower receives the funding, there is a variable consideration that the amount of advisory fee will be reduced if the borrower returns the loan in advance which is clearly stated in the clause of the contract. Therefore the revenue is calculated by multiplying the annualized charge rate with the financing amount and recognized at a straight-line over the actual service period. Asset management Revenue from asset management service mainly includes management fees and performance-based fees, in a typical arrangement in which the Company serves as fund manager. Management fees Revenue from asset management, includes management fee from the privately-raised funds managed by the Company. Management fees are recognized in the period during which the related services are performed in accordance with the contractual terms of the fund agreements from the established date to the terminated date of the funds. Management fees earned from certain investment funds are based upon range up to 2% of capital committed. By unanimous consent among the fund manager, investors and the trustee, the fund could be terminated earlier than the contract period, and the remaining portion of unamortized management fee shall be returned to the investors. Performance-based fees The Company is entitled to a performance-based fee based on the extent by which the fund's investment performance exceeds a certain threshold at the end of the contract term. Such performance-based fee is typically calculated and recognized at the end of the contract term when the cumulative return of the fund can be determined, and is not subject to clawback provisions. Information technology and others In fiscal year 2018, information technology and others mainly represents revenue from the technological support and system development services provided to third parties. The services contract pricing is based on the expected labor cost, project management services fee plus a certain percentage of gross profit. Revenue is recognized according to completion percentage and total contract amount upon the acceptance of the services confirmed by the customers. Starting from fiscal year 2019, the Company has transitioned IT service to become part of internal information technology service function, and therefore there is no information technology revenue in fiscal year 2019. In fiscal year 2019, other income of RMB1.0 million is interest income from factoring business Disaggregation of revenue As of June 30, 2018 2019 Wealth management 140,403 193,082 Distribution commissions 126,843 146,207 -- One time commissions 125,866 12 0,509 -- Over period commissions 977 2 5,698 Performance-based distribution fees 13,560 46,875 Corporate financing 13,710 6,271 Asset management 103 2,767 Management fees 103 2,767 Performance-based fees - - Information technology and others 11,595 1,111 Total 165,811 203,231 Contract liability Contract liability relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance for management fees under Asset Management Services. The contract liability was RMB nil and RMB180 as of June 30, 2018 and 2019, respectively, and is recorded as "Advance receipts" in the consolidation statement of financial position. (l) Cost of sales Cost of sales primarily includes (1) commission costs paid to sales agents based on the pre-agreed percentage and the amount of wealth management product distributions that were directly related to the contributions made by the sales agents, such as the amount of investments they've referred to the Company, and (2) transaction fees paid to the third-party payment platforms through which the investors purchase funds are transferred. (m) Income taxes The Company follows the guidance of ASC Topic 740 "Income taxes" and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date. (n) Uncertain tax positions The Company follows the guidance of ASC Topic 740 "Income taxes", which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Topic also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. The Company recognizes interest on non-payment of income taxes and penalties associated with tax positions when a tax position does not meet more likely than not thresholds be sustained under examination. The tax returns of the Company's PRC subsidiaries and VIEs are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100. 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. During the years ended June 30, 2018 and 2019, the Company recognized RMB nil and RMB600 of provisions on its uncertain tax positions based on its analysis over transfer pricing. The Company recognizes the provisions and any interest and penalties within the income tax expense line item in the accompanying Consolidated Statements of Income. The accrued provisions and any related interest and penalties balances are included in the other tax liabilities line in the Consolidated Balance Sheet. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. (o) Value added tax ("VAT") Pursuant to the Provisional Regulation of the PRC on VAT and the related implementing rules, all entities and individuals ("taxpayers") that are engaged in the service industry in the PRC are generally required to pay VAT at a rate of 6% of the gross sales proceeds received, less any deductible VAT already paid or borne by the taxpayers. The Company's PRC subsidiary and the consolidated VIE are subject to VAT at 6% of their revenues. (p) Non-controlling interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the Consolidated Balance Sheet and net income and other comprehensive income are attributed to controlling and non-controlling interests. (q) Fair value of financial instruments The Company records certain of its financial assets and liabilities at fair value on a recurring basis. Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of the Company's financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, short-term investments, commercial acceptance notes, other receivables, short-term loans receivable, accounts payable and other payables, investors' deposit, amounts due from and due to related parties, and income taxes payables and other tax liabilities, approximate their fair values due to the short term nature of these instruments. (r) Foreign Currency Translation and change in reporting currency The Company's reporting and functional currency is Renminbi ("RMB"). The Company's operations are principally conducted through the subsidiaries and VIEs located in the PRC where the RMB is the functional currency. For those subsidiaries and VIEs which are not located in the PRC and have the functional currency other than RMB, the financial statements are translated from their respective functional currencies into RMB. Assets and liabilities of the Company's overseas entities denominated in currencies other than the RMB are translated into RMB at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the consolidated statements of comprehensive income. Translations of amounts from RMB into US$ are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.865 on June 28, 2019, representing the certificated exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 28, 2019, or at any other rate. (s) Segment reporting The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker ("CODM") for making decisions, allocating resources and assessing performance. The Company's CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company manages its business as a single operating segment engaged in the provision of distribution and managing wealth management services in the PRC. Substantially all of its revenues are derived in the PRC. All long-lived assets are located in PRC. (t) Earnings per share ("EPS") Basic EPS is calculated by dividing the net income available to common shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by using the weighted average number of ordinary shares outstanding adjusted to include the potentially dilutive effect of outstanding share-based awards, unless their inclusion in the calculation is anti-dilutive. (u) Commitments and contingencies The Company estimated losses from loss contingencies are accrued by a charge to income when information available before financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. (v) Recently issued accounting standards In February 2016, the FASB issued ASU No. 2016-02 , Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees' recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. Based on our preliminary assessment, we expect to record a right-of-use asset of approximately RMB28 million and a lease liability of approximately RMB27 million on the adoption date of July 1, 2019, primarily related to our leased office space. In July 2018, the FASB issued ASU No. 2018-11, Collaborative Arrangements (Topic 808), which provide further codification improvements and relieves the requirement to present prior comparative year results when adopting the new lease standard. We will use a modified retrospective approach under ASU 2018-11 and will not restate prior periods. We expect to implement new accounting policies as well as to elect certain practical expedients available to us under ASU 2016-02, including those related to leases with terms of less than 12 months. The conclusions are preliminary and subject to change as the Company finalize the evaluation. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In May 2019, the FASB issued ASU 2019-05, which provides transition relief for entities adopting the Board's credit losses standard, ASU 2016-13. Specifically, ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of the credit losses guidance in ASC 326-20, (3) are eligible for the fair value option under ASC 825-10, and (4) are not held-to-maturity debt securities. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-05 are effective for fiscal years beginning after December 15, 2019, including interim periods therein. An entity may early adopt the ASU in any interim period after its issuance if the entity has adopted ASU 2016-13. For all other entities, the effective date will be the same as the effective date of ASU 2016-13. The Company is in the process of evaluating the impact of adoption of this guidance on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies disclosure requirements for fair value measurements. While some disclosures have been removed or modified, new disclosures have been added. The guidance is effective for us no later than July 1, 2020. Early adoption is permitted, where the Company is permitted to early adopt the portion of the guidance regarding the removal or modification of the fair value measurement disclosures while waiting to adopt the requirement regarding additional disclosures until the effective date. The Company is in the process of evaluating the impact of adoption of this guidance on the Company's consolidated financial statements. Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company's consolidated financial statements upon adoption. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3. CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, 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 flow s. Year ended June 30, 2018 2019 2019 RMB RMB US$ Cash and cash equivalent 103,228 378,445 55,127 Restricted cash 8,772 51,823 7,549 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows 112,000 430,268 62,676 |
Acquisition of Subsidiary
Acquisition of Subsidiary | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITION OF SUBSIDIARY | 4. ACQUISITION OF SUBSIDIARY In July 2018, Puyi Asset acquired 51% equity interest in Shenzhen Qianhai Zhonghui Huiguan Investment Management Co., Ltd. ("Zhonghui") ( 深圳前海中惠惠冠投资管理有限公司 Puyi Asset acquired 51% of Zhonghui for a cash consideration of approximately RMB1.6 million which equals 51% of Zhonghui's net book value on the date of acquisition. The Company examined Zhonghui's assets and liabilities, and concluded that the book value of assets and liabilities approximate to their fair value. Besides the above identifiable assets and liabilities, the Company also acquired Zhonghui's experienced management team. Pursuant to GAAP, no identifiable intangible asset was recognized in this acquisition. No other identifiable intangible assets |
Investments
Investments | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
INVESTMENTS | 5. INVESTMENTS The following table summarizes the Company's investment balances: As of June 30, 2018 2019 2019 RMB RMB US$ Short-term investments - Held-to-maturity investments 5,010 - - Asset management plans 5,010 - - - Private equity funds products - 2,000 291 Total short-term investments 5,010 2,000 291 Long-term investments - Private equity funds products 5,000 2,000 291 Total long-term investments 5,000 2,000 291 Held-to-maturity investments consist of investments in fixed income products, such as asset management plans that have stated maturity and normally pay a prospective fixed rate of return, carried at amortized cost. The Company recorded investment income on these products of RMB2,562 and RMB162 for the years ended June 30, 2018 and 2019, respectively. Short-term investments consist of investment in a private equity fund which the Company has insignificant equity interest but acts as a general partner. Pursuant to ASC subtopic 321-10-20 and 321-10-35, the Company accounted for this private equity fund investment using the equity method of accounting due to the fact that the Company has significant influence on the investee. Long-term investments consist of investment in a private equity fund as a limited partner with insignificant equity interest (less than 1%). Pursuant to ASC subtopic 321-10-35, the Company accounted for these private equity funds investments using the fair value method of accounting due to the fact that the Company has no significant influence on the investee. The Company recorded investment income on these investments of RMB nil and RMB10 for the years ended June 30, 2018 and 2019, respectively. |
Commercial Acceptance Notes
Commercial Acceptance Notes | 12 Months Ended |
Jun. 30, 2019 | |
Commercial Acceptance Notes [Abstract] | |
COMMERCIAL ACCEPTANCE NOTES | 6. COMMERCIAL ACCEPTANCE NOTES The commercial acceptance notes are measured at their face value less the amount of discounts which will be amortized as interest income throughout the holding period of the commercial acceptance notes. The Company has the right of recourse of these debt securities, and expects to collect the full face value in lump-sum upon the maturity of these notes. Impairments of these notes are analyzed whenever events or changes in circumstances indicate that the carrying amount of these notes may no longer be recoverable. On May 18, 2018, the Company acquired, through endorsements, commercial acceptance notes with a face value of approximately RMB11,380 from the previous holders at an annual discount rate of 8.50%. These notes gradually reached maturity before May, 2019. The Company recognized interest income on endorsements notes of approximately RMB1,632 and RMB738 during the years ended June 30, 2018 and 2019, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 7. ACCOUNTS RECEIVABLE, NET As of June 30, 2018 2019 2019 RMB RMB US$ Accounts receivable 30,757 27,767 4,045 Allowance for doubtful debts - - - Accounts receivable, net 30,757 27,767 4,045 All of the accounts receivable are non-interest bearing, with aging within 3 months. |
Other Receivables
Other Receivables | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
OTHER RECEIVABLES | 8. OTHER RECEIVABLES Other receivables consist of the following: As of June 30, 2018 2019 2019 RMB RMB US$ Advances to staff 474 373 54 Prepayments to service providers 3,304 3,142 458 Rental deposits 1,680 2,502 364 Other 271 482 71 Other receivables 5,729 6,499 947 |
Short-Term Loans Receivable
Short-Term Loans Receivable | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LOANS RECEIVABLE | 9. SHORT-TERM LOANS RECEIVABLE As of June 30, 2018, the balance mainly represents a loan of RMB50,000 to a real estate developing company for one year from June 5, 2018 to June 4, 2019, with annual interest of 10%. The loan was guaranteed by the legal representative and the controlling shareholder of the real estate developing company. The loan of RMB50,000 with interests has been early repaid in July 2018. The Company recognized interest income on short-term loans receivable of approximate RMB 1,393 and RMB 310 during the years ended June 30, 2018 and 2019, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 10. PROPERTY AND EQUIPMENT, NET Property and equipment, net, is comprised of the following: As of June 30, 2018 2019 2019 RMB RMB US$ Furniture and office equipment 1,784 2,667 388 Leasehold improvements 612 3,951 576 2,396 6,618 964 Less: Accumulated depreciation (1,506 ) (2,592 ) (378 ) Property and equipment, net 890 4,026 586 Depreciation expense for the year ended June 30, 2018 and 2019 was RMB604 and RMB1,122, respectively. No impairment for property and equipment was recorded for the years ended June 30, 2018 and 2019. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 11. INTANGIBLE ASSETS, NET As of June 30, 2018 2019 2019 RMB RMB US$ Software and operating system 5,081 4,427 645 Less: Accumulated amortization (4,381 ) (3,694 ) (538 ) Intangible asset, net 700 733 107 Amortization expense for the years ended June 30, 2018 and 2019 was RMB1,261 and RMB620, respectively. |
Investors' Deposit
Investors' Deposit | 12 Months Ended |
Jun. 30, 2019 | |
Investors Deposit | |
INVESTORS' DEPOSIT | 12. INVESTORS’ DEPOSIT The balance represents the investors’ uninvested cash balances temporarily deposited in the Company’s bank account. These cash balances were under the custody and supervision of the designated financial institution as required by China Securities Regulatory Commission, for the purpose of preventing abusive use of investors’ funds. |
Other Payables and Accrued Expe
Other Payables and Accrued Expenses | 12 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | 13. OTHER PAYABLES AND ACCRUED EXPENSES Components of other payables and accrued expenses are as follows: As of June 30, 2018 2019 2019 RMB RMB US$ Payroll payable 3,229 6,149 896 Value-added tax 1,900 1,058 154 Employee's individual income tax 479 725 106 Other miscellaneous taxes 143 30 4 Others 378 695 101 Other payables and accrued expenses 6,129 8,657 1,261 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. INCOME TAXES The Company and its subsidiaries, and the consolidated VIEs file tax returns separately. Cayman Islands The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. British Virgin Islands The Company's subsidiary incorporated in the BVI is not subject to taxation. Hong Kong On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the "Bill") which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was gazette on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar ("HKD") of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD2 million will be taxed at 16.5%. PRC The Company's subsidiary and VIEs incorporated in PRC are subject to PRC Enterprise Income Tax ("EIT") law. Pursuant to the relevant laws and regulations in the PRC, Puyi Bohui is regarded as an accredited software company and a High and New Technology Enterprise ("HNTE"), and thus enjoys preferential tax treatments, including being exempted from PRC Income Tax for two years starting from its first profit-making year, followed by a 50% reduction for the next three years. For Puyi Bohui, tax year 2015 was the first profit-making year and accordingly, Puyi Bohui has made a 12.5% tax provision for its profits from January 1, 2018. Puyi Zhongxiang is qualified for Shenzhen Qianhai modern services cooperation district entity tax preference and is subject to an income tax rate for 15%. Chongqing Fengyi and Puyi Consulting are qualified for west development taxation preference and is subject to an income tax rate for 15%. Other PRC subsidiaries are subject to a standard 25% EIT. The components of the income tax provision are: Years Ended June 30, 2018 2019 2019 RMB RMB US$ Current 8,490 10,288 1,499 Deferred (229 ) (892 ) (130 ) Total income tax provision 8,261 9,396 1,369 The principal components of the deferred income tax assets and liabilities are as follows: As of June 30, 2018 2019 2019 RMB RMB US$ Non-current deferred tax assets: Tax loss carry forward 4,241 6,062 883 Less: valuation allowances - 929 135 Total 4,241 5,133 748 The Company considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company's experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more-likely-than-not threshold. The Company's ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. The Company had total tax loss carry-forwards of RMB16,965 and RMB28,261 as of June 30, 2018 and 2019, respectively. As of June 30, 2019, the tax loss carry-forwards of RMB238, RMB2,317, RMB10,908 and RMB14,798 are to expire for the years ending June 30, 2021, 2022, 2023 and 2024, respectively. During the years ended June 30, 2018 and 2019, there was no tax loss carried forward expired and canceled. Reconciliation between the statutory tax rate to income before income taxes and the actual provision for income taxes is as follows: Years ended June 30, 2018 2019 2019 RMB RMB US$ Income from operations before income taxes 71,878 61,419 8,947 PRC income tax statutory rate 25 % 25 % 25 % Income tax at statutory tax rate 17,970 15,355 2,237 Preferential tax treatments and tax holiday effects (8,937 ) (7,019 ) (1,022 ) Super deduction of qualified R&D expenditures (772 ) (857 ) (125 ) Expenses not deductible for tax purposes - 388 57 Uncertain tax provision - 600 87 Valuation allowances - 929 135 Income tax expense 8,261 9,396 1,369 The current PRC EIT Law imposes a 10% withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside the PRC. A lower withholding tax rate will be applied if there is a tax treaty arrangement between the PRC and the jurisdiction of the foreign holding company. Distributions to holding companies in Hong Kong that satisfy certain requirements specified by PRC tax authorities, for example, will be subject to a 5% withholding tax rate. As of June 30, 2018 and 2019, the Company had not recorded any withholding tax on the retained earnings of its foreign invested enterprises in the PRC, since the Company intends to reinvest its earnings to further expand its business in mainland China, and its foreign invested enterprises do not intend to declare dividends to their immediate foreign holding companies. The Company analyzes its uncertain income tax positions concerning with transfer pricing on a regular basis, which were primarily concerned with sales activities conducted among the subsidiaries that had different income tax rates (ranging from 12.5% to 25%) and the amount of taxes that could have been paid additionally, in aggregation, had those sales activities were conducted among subsidiaries without any preferential income tax rates. When such potential impact is identified, the Company recognize 100% of the calculated income tax exposure as an income tax expense and other tax liabilities. Movements of other tax liabilities are as follows: RMB US$ Balance as of June 30, 2016 6,700 1,013 Provisions for uncertain tax positions in fiscal year 2017 2,000 302 Balance as of June 30, 2017 8,700 1,315 Provisions for uncertain tax positions in fiscal year 2018 - - Balance as of June 30, 2018 8,700 1,315 Provisions for uncertain tax positions in fiscal year 2019 600 40 Balance as of June 30, 2019 9,300 1,355 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 15. EARNINGS PER SHARE The computation of basic and diluted net income per ordinary share is as follows: Year ended June 30, 2018 2019 2019 RMB RMB US$ Numerator: Net income 63,617 52,023 7,578 Less: Net (loss) attributable to the non-controlling interests (979 ) (1,508 ) (220 ) Net income attributable to the Company's shareholders 64,596 53,531 7,798 Denominator: Weighted average number of ordinary shares outstanding 80,000,000 84,997,628 84,997,628 Basic & diluted net income per ordinary share 0.807 0.630 0.092 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2019 | |
Other Restricted Assets [Abstract] | |
Restricted Net Assets | 16. RESTRICTED NET ASSETS As most of the Company’s operations are conducted through its PRC subsidiaries and VIEs, the Company’s ability to pay dividends is primarily dependent on receiving distributions of funds from its PRC subsidiaries and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by its PRC subsidiaries and VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations and after it has met the PRC requirements for appropriation to statutory reserves. Paid in capital of the PRC subsidiaries and VIEs included in the Company’s consolidated net assets are also non-distributable for dividend purposes. In accordance with the PRC regulations on Enterprises with Foreign Investment, a WFOE established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A WFOE is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Puyi Consulting is subject to the above mandated restrictions on distributable profits. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide a statutory common reserve of at least 10% of its annual after-tax profit until such reserve has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide for a discretionary surplus reserve, at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. All of the Company’s PRC VIEs are subject to the above mandated restrictions on distributable profits. As a result of these PRC laws and regulations, the Company’s PRC subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets to the Company. As of June 30, 2018 and 2019, net assets restricted in the aggregate, which include paid-in capital and statutory reserve funds of the Company’s PRC subsidiaries and VIEs that were included in the Company’s consolidated net assets, were approximately RMB231,277 and RMB347,872 respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS The following is a list of the related parties with whom the Company conducted significant transactions, and their relationship with the Company: Related parties Relationship Mr. Yu Haifeng Controlling shareholder and Chairman of the Company Puyi Inc.'s founding shareholders before IPO Shareholders of Puyi Inc. before IPO Renshou Xinrui Enterprise Management Center LLP Ultimately controlled by Mr. Yu Fanhua Inc. Shareholder of Puyi Tibet Zhuli Investment Co., Ltd. Subsidiary of Fanhua Inc. Zhonghui Huiguan Investment Management Co., Ltd. Subsidiary of Puyi Inc. Shenzhen Taozhan Trade Co., Ltd. Related party of Zhonghui Red Lake Yongjin No.1 (Shenzhen) Investment LLP A vehicle controlled by Zhonghui's minority shareholder by April 2019 and managed by the Company thereafter The principal related party balances and transactions as of and for the years ended June 30, 2018 and 2019 are as follows: Related party transactions: Year ended June 30 Nature 2018 2019 2019 RMB RMB US$ Tibet Zhuli Investment Co., Ltd. (a) - 1,048 152 Tibet Zhuli Investment Co., Ltd. (a) - 50,000 7,283 Puyi Inc.'s founding (b) - 529 80 Shenzhen Taozhan Trade Co., Ltd (c) - 410 59 Mr. Yu Haifeng (d) - 80 12 Red Lake Yongjin No.1 (Shenzhen) Investment LLP ( e) - 581 85 Nature of transactions: (a) In August 2018, we received a short-term loan with a principal amount of RMB50.0 million from Tibet Zhuli Investment Co., Ltd. ("Tibet Zhuli"), which was controlled by Fanhua Inc, our shareholder. The amounts are unsecured, bearing interest at 8.5% per annum and are repayable after 6 months from the date of the agreement. As of December 31, 2018, the principal and interest of the loan have been fully paid back. Interest expense from loan payable to Tibet Zhuli recognized in 2018 (b) The five founding shareholders of Puyi Inc. were Worldwide Success Group Limited, Winter Dazzle Limited, Danica Surge Limited, Advance Tycoon Limited and Future One Holdings Limited. During the reporting period, these five shareholders together contributed US$80 (c) In July 2018, we acquired Zhonghui Huiguan Investment Management Co., Ltd.("Zhonghui") which provided a loan of RMB1.0 million to its related party Shenzhen Taozhan Trade Co., Ltd.("Taozhan"). During the reporting period, Taozhan paid back partial of the loan. (d) Repayment of short-term loans. (e) In September 2018, we incurred advisory fee expenses to Red Lake Yongjin No1 (Shenzhen) Investment LLP for a potential non-performing loan project. Amounts due from related parties: As of June 30, 2018 2019 2019 RMB RMB US$ Mr. Yu Haifeng 80 - - Shenzhen Taozhan Trade Co., Ltd. - 590 86 Total 80 590 86 Amounts Amount due from Shenzhen Taozhan Trade Co., Ltd. is a loan provided by Zhonghui. Amounts due to related parties: As of June 30, 2018 2019 2019 RMB RMB US$ Due to principal shareholder for acquisition of subsidiaries 2,116 - - The balance of RMB 2,116 as of June 30, 2018 was a result of the acquisition of subsidiaries under common control and the full balance has been settled in July, 2018. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 18. SHAREHOLDERS' EQUITY The shareholders' equity structure as of June 30, 2018 was presented after giving retroactive effect to the reorganization of the Company that was completed on September 6, 2018. Immediately before and after reorganization, the Company together with its wholly-owned subsidiaries, Puyi Group, Puyi HK, WFOE, Baoying and its VIEs were effectively controlled by the same shareholders; therefore, for accounting purpose, the reorganization was accounted for as a recapitalization. Puyi Inc. was established under the laws of the Cayman Islands on August 6, 2018. The authorized number of ordinary shares is 2,000,000,000 shares with par value of US$0.001 each. On August 6, 2018, the Company issued an aggregate of 80,000,000 ordinary shares at a price of US$0.001 per share with total consideration of US$80, pro-rata to the shareholders of the Company as of such date. In accordance with SEC SAB Topic 4, the nominal share issuance was accounted for as a stock split and that all share and per share information has been retrospectively restated to reflect such stock split for all periods presented. On September 3, 2018, the Company purchased the remaining equity interest of 15.41% of Fanhua Puyi from Beijing Fanlian Investment Limited (controlled by Fanhua Inc.) in exchange for (i) a cash consideration of RMB10,028,117; and (ii) new issuance of 4,033,600 ordinary shares of the Company to Fanhua Inc. at a consideration of US$1,468,976.8. On March 29, 2019, Puyi listed its American depositary shares ("ADSs"), every two ADSs representing three ordinary shares (with each ADS representing 1.5 ordinary shares), on the NASDAQ Global Market in the IPO. As a result, Puyi issued a total of 4,292,276 ADSs at US$6.0 per ADS in connection with its IPO and received net proceeds of approximately US$22.9 million, after deducting underwriting discounts and the estimated offering expenses. Upon the completion of the IPO, Puyi had a total of 90,472,014 ordinary shares. As of June 30, 2018 and 2019, 80,000,000 and 90,472,014 ordinary shares were issued at par value, equivalent to share capital of US$80 and US$90, which was outstanding as of the issuance date of the financial statements. |
Non-Controlling Interest
Non-Controlling Interest | 12 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest Items [Abstract] | |
NON-CONTROLLING INTEREST | 19. NON-CONTROLLING INTEREST On July 3, 2018, Puyi Asset Management acquired 51% of Shenzhen Qianhai Zhonghui Huiguan Investment Management Co., Ltd. ("Zhonghui"). Now Zhonghui is the Company's majority-owned subsidiary and is consolidated in the Company's financial statements with non-controlling interest recognized for RMB 1.58 million for the fiscal year of 2019. Subsequent to the acquisition, an additional RMB 2.45 million was further injected by Zhonghui's minority shareholders (see Note 4). On September 3, 2018, the Company has entered into a share purchase agreement with Beijing Fanlian Investment Limited ("Beijing Fanlian") for the acquisition of the remaining 15.41% equity interest in Puyi Fund at a consideration of approximately RMB 10.0 million with the NCI's book value of approximately RMB 8.2 million. This has brought the Company's total shares in Puyi Fund to 100%. In return, the Company issued an additional 4,033,600 new ordinary shares on September 5, 2018 to Fanhua Inc., which is the ultimately shareholder of Beijing Fanlian, at approximately RMB 10.0 million. |
Guarantee
Guarantee | 12 Months Ended |
Jun. 30, 2019 | |
Guarantees and Product Warranties [Abstract] | |
GUARANTEE | 20. GUARANTEE In August 2018, we were a guarantor of a short-term loan with a principal amount of RMB100.0 million between Red Lake Yongjin No.1 (Shenzhen) Investment LLP (a non-performing loan fund we managed) and Tibet Zhuli Investment Co., Ltd., which was controlled by Fanhua Inc. The loan bears interest at 12.0% per annum and the principal and interest have been fully paid back by October 2018. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENCIES | 21. COMMITMENT AND CONTINGENCIES Operating lease commitments: The Company has several non-cancelable operating leases, primarily for office premises. Future Lease liability under non-cancelable operating leases as of June 30, 2019 are: Lease Liability Lease Liability RMB US$ Year ending June 30: 2020 7,681 1,119 2021 7,397 1,077 2022 6,807 992 2023 6,115 891 2024 2,034 296 After 2024 370 54 Total 30,404 4,429 Rental expenses incurred under operating leases for the year ended June 30, 2018 and 2019 amounted to RMB4,026 and RMB7,645 respectively. Contingencies In the ordinary course of business, the Company may be subject to legal proceeding regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. The Company has no significant pending litigation as of issuance date of the financial statements. |
Concentrations
Concentrations | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 21. COMMITMENT AND CONTINGENCIES Operating lease commitments: The Company has several non-cancelable operating leases, primarily for office premises. Future Lease liability under non-cancelable operating leases as of June 30, 2019 are: Lease Liability Lease Liability RMB US$ Year ending June 30: 2020 7,409 1,079 2021 7,397 1,077 2022 6,807 992 2023 6,115 891 2024 2,034 296 After 2024 370 54 Total 30,132 4,389 Rental expenses incurred under operating leases for the year ended June 30, 2018 and 2019 amounted to RMB4,026 and RMB7,645 respectively. Contingencies In the ordinary course of business, the Company may be subject to legal proceeding regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. The Company has no significant pending litigation as of issuance date of the financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 23. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the issuance of the consolidated financial statements and no subsequent event has been identified that would have required adjustment or disclosure in the consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | (a) Basis of presentation and consolidation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of the Company, all its majority-owned subsidiaries and those VIEs of which the Company is the primary beneficiary, from the dates they were acquired or incorporated. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | (b) Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant accounting estimates reflected in the Company’s consolidated financial statements include but are not limited to estimates and judgments applied in the allowance for doubtful loans and receivables, impairment assessment of long-lived assets, valuation allowance for deferred tax assets, fair value measurement of investments, and uncertain tax positions, assumptions related to the consolidation of entities in which the Group holds variable interests. Actual results could differ from those estimates and judgments. |
Cash and cash equivalents | (c) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash with original maturity of three months or less, and have insignificant risk of changes in value related to changes in interest rates. |
Restricted cash | (d) Restricted cash Restricted cash were mainly the investors’ uninvested cash balances temporarily deposited in the Company’s bank account. These cash balances were under the custody and supervision of the designated financial institution as required by China Securities Regulatory Commission, for the purpose of preventing abusive use of investors’ funds. |
Accounts receivable, other receivables, and amount due from related parties, net | (e) Accounts receivable, other receivables, and amount due from related parties, net Accounts receivable, other receivables and amount due from related parties are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable, other receivables and due from related parties. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company did not have any off-balance-sheet credit exposure relating to its customers, suppliers or others. For the years ended June 30, 2018 and 2019, the Company did not record any allowances for doubtful accounts against its accounts receivable, other receivables and amount due from related parties nor did it charge off any such amounts, respectively. |
Short-term loans receivable | (f) Short-term loans receivable The Company recognizes the contractual right to receive money on demand or on fixed or determinable dates as loans receivable. For those that the contractual maturity date is less than one year, the Company records as short-term loans receivable. The Company recognized interest income on an accrue basis using the straight-line method over the fixed or determinable dates. |
Investments | (g) Investments The Company accounts for the investments pursuant to ASC topic 321, Investments-equity securities. The Company records investments in certain private equity funds, in which the Company has insignificant The Company records investments in certain private equity funds, in which the Company has insignificant equity interest but acts as a general partner, as short-term investments on the consolidated balance sheet under the equity method. These investments are classified as short-term The Company reviews its investments except for those classified as trading securities for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the cost of an investment exceeds the investment's fair value, the Company considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Company's intent and ability to hold the investment to determine whether an other-than-temporary impairment has occurred. The Company recognizes other-than-temporary impairment in earnings if it has the intent to sell the investments or if it is more-likely-than-not that it will be required to sell the investments before recovery of its amortized cost basis. Additionally, the Company evaluates expected cash flows to be received and determines if credit-related losses on debt securities exist, which are considered to be other-than-temporary, should be recognized in earnings. If the investment's fair value is less than the cost of an investment and the Company determines the impairment to be other-than-temporary, the Company recognizes an impairment loss based on the fair value of the investment. The Company has not recorded an other-than-temporary impairment for each of the years ended June 30, 2018 and 2019. |
Property and equipment, net | (h) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives, without residual value: Estimated useful life Office equipment, furniture and fixtures 3-5 years Leasehold improvements Shorter of the remaining lease terms and estimated useful lives |
Intangible assets, net | (i) Intangible assets, net Intangible assets represent software and operating system, including the office automatic system and transaction platform and fund distribution systems that were purchased from external third-party vendors. The intangible assets were initially recorded at historic acquisition costs, and amortized on a straight-line basis over estimated useful lives for three years. Costs associated with the engineering and technical headcounts responsible for software development, as well as their associated costs, are expensed as incurred. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The Company may rely on a qualitative assessment when performing its intangible asset impairment test. Otherwise, the impairment evaluation is performed at the lowest level of identifiable cash flows independent of other assets. |
Impairment of long-lived assets | (j) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Company assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition where the fair value is lower than the carrying value, measurement of an impairment loss is recognized in the consolidated statements of operations and comprehensive income (loss) for the difference between the fair value, using the expected future discounted cash flows, and the carrying value of the assets. No impairment of long-lived assets was recognized for the years ended June 30, 2018 and 2019. |
Revenue recognition | (k) Revenue recognition On July 1, 2018, the Company adopted ASC 606 "Revenue from Contracts with Customers", applying the modified retrospective method. The adoption didn't result in a material adjustment to our accumulated deficit as of July 1, 2018. Accordingly, revenue for the fiscal year ended June 30, 2019 was presented under ASC 606, while comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company generates revenues mainly from wealth management, corporate financing and asset management. The revenues are accounted for as contracts with customers. Under the guidance for contracts with customers, we are required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) we satisfy its performance obligations. In determining the transaction price, we have included variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur. Revenues are recorded net of sales related taxes and surcharges. Wealth management Revenue from wealth management mainly includes distribution commissions and performance-based fees, in a typical arrangement in which the Company serves as distributor. Distribution commissions Distribution commissions are primarily generated from 1) online distributions of financial products, which include publicly raised fund products and other financial products (mostly exchange administered products) and 2) offline distribution of privately-raised fund products. The Company enters into distribution agreements with financial product issuers which specify the key terms and conditions of the arrangement. Such agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. For privately raised funds in the lockup period and part of exchange administrative financial products, upon establishment of a financial product, the Company charges a one-time distribution commission fee against the issuer by multiplying a pre-agreed annualized charge rate with the amount of products distributed through either online platform or offline sales network, prorated by the actual period length of the product. The Company defines the "establishment of a financial product" for its revenue recognition purpose at the time when both of the following two criteria are met: (1) the product purchaser (the "investor") has entered into a purchase or subscription contract with the relevant product issuer and the investor has transferred the subscription fund to an escrow account designated by the product issuer and (2) the product issuer has issued a formal notice to confirm the establishment of a financial product. For privately raised funds after lockup period and part of exchange administrative financial products, because the amount of investment in the financial products is variable every day, the commission revenue is recognized as a percentage of the net asset value of the total investment in the financial products, calculated daily. Performance-based distribution fees Performance-based distribution fees are contributed by the offline distributed privately raised fund products. The Company earns performance-based distribution fees from the issuers of the privately raised fund products, which are dependent on the extent by which the fund's investment performance exceeds a certain threshold at the end of the contract term. Such performance-based fee is typically recognized and distributed at a point of time, usually at the end of the contract term when the cumulative return of the fund can be determined, and is not subject to clawback provisions. Corporate financing The Company provides comprehensive financing solutions to corporate borrowers, including reference of sources and channels of funding. The contract between the borrower and the Company clearly states the financing amount, the agreed financing days, and the annualized charge rate. Although the performance obligation is fulfilled when borrower receives the funding, there is a variable consideration that the amount of advisory fee will be reduced if the borrower returns the loan in advance which is clearly stated in the clause of the contract. Therefore the revenue is calculated by multiplying the annualized charge rate with the financing amount and recognized at a straight-line over the actual service period. Asset management Revenue from asset management service mainly includes management fees and performance-based fees, in a typical arrangement in which the Company serves as fund manager. Management fees Revenue from asset management, includes management fee from the privately-raised funds managed by the Company. Management fees are recognized in the period during which the related services are performed in accordance with the contractual terms of the fund agreements from the established date to the terminated date of the funds. Management fees earned from certain investment funds are based upon range up to 2% of capital committed. By unanimous consent among the fund manager, investors and the trustee, the fund could be terminated earlier than the contract period, and the remaining portion of unamortized management fee shall be returned to the investors. Performance-based fees The Company is entitled to a performance-based fee based on the extent by which the fund's investment performance exceeds a certain threshold at the end of the contract term. Such performance-based fee is typically calculated and recognized at the end of the contract term when the cumulative return of the fund can be determined, and is not subject to clawback provisions. Information technology and others In fiscal year 2018, information technology and others mainly represents revenue from the technological support and system development services provided to third parties. The services contract pricing is based on the expected labor cost, project management services fee plus a certain percentage of gross profit. Revenue is recognized according to completion percentage and total contract amount upon the acceptance of the services confirmed by the customers. Starting from fiscal year 2019, the Company has transitioned IT service to become part of internal information technology service function, and therefore there is no information technology revenue in fiscal year 2019. In fiscal year 2019, other income of RMB1.0 million is interest income from factoring business Disaggregation of revenue As of June 30, 2018 2019 Wealth management 140,403 193,082 Distribution commissions 126,843 146,207 -- One time commissions 125,866 12 0,509 -- Over period commissions 977 2 5,698 Performance-based distribution fees 13,560 46,875 Corporate financing 13,710 6,271 Asset management 103 2,767 Management fees 103 2,767 Performance-based fees - - Information technology and others 11,595 1,111 Total 165,811 203,231 Contract liability Contract liability relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance for management fees under Asset Management Services. The contract liability was RMB nil and RMB180 as of June 30, 2018 and 2019, respectively, and is recorded as "Advance receipts" in the consolidation statement of financial position. |
Cost of sales | (l) Cost of sales Cost of sales primarily includes (1) commission costs paid to sales agents based on the pre-agreed percentage and the amount of wealth management product distributions that were directly related to the contributions made by the sales agents, such as the amount of investments they've referred to the Company, and (2) transaction fees paid to the third-party payment platforms through which the investors purchase funds are transferred. |
Income taxes | (m) Income taxes The Company follows the guidance of ASC Topic 740 “Income taxes” and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date. |
Uncertain tax positions | (n) Uncertain tax positions The Company follows the guidance of ASC Topic 740 "Income taxes", which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Topic also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. The Company recognizes interest on non-payment of income taxes and penalties associated with tax positions when a tax position does not meet more likely than not thresholds be sustained under examination. The tax returns of the Company's PRC subsidiaries and VIEs are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100. 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. During the years ended June 30, 2018 and 2019, the Company recognized RMB nil and RMB600 of provisions on its uncertain tax positions based on its analysis over transfer pricing. The Company recognizes the provisions and any interest and penalties within the income tax expense line item in the accompanying Consolidated Statements of Income. The accrued provisions and any related interest and penalties balances are included in the other tax liabilities line in the Consolidated Balance Sheet. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. |
Value added tax ("VAT") | (o) Value added tax ("VAT") Pursuant to the Provisional Regulation of the PRC on VAT and the related implementing rules, all entities and individuals ("taxpayers") that are engaged in the service industry in the PRC are generally required to pay VAT at a rate of 6% of the gross sales proceeds received, less any deductible VAT already paid or borne by the taxpayers. The Company's PRC subsidiary and the consolidated VIE are subject to VAT at 6% of their revenues. |
Non-controlling interest | (p) Non-controlling interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the Consolidated Balance Sheet and net income and other comprehensive income are attributed to controlling and non-controlling interests. |
Fair value of financial instruments | (q) Fair value of financial instruments The Company records certain of its financial assets and liabilities at fair value on a recurring basis. Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, short-term investments, commercial acceptance notes, other receivables, short-term loans receivable, accounts payable and other payables, investors’ deposit, amounts due from and due to related parties, and income taxes payables and other tax liabilities, approximate their fair values due to the short term nature of these instruments. |
Foreign Currency Translation and change in reporting currency | (r) Foreign Currency Translation and change in reporting currency The Company’s reporting and functional currency is Renminbi (“RMB”). The Company’s operations are principally conducted through the subsidiaries and VIEs located in the PRC where the RMB is the functional currency. For those subsidiaries and VIEs which are not located in the PRC and have the functional currency other than RMB, the financial statements are translated from their respective functional currencies into RMB. Assets and liabilities of the Company’s overseas entities denominated in currencies other than the RMB are translated into RMB at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the consolidated statements of comprehensive income. Translations of amounts from RMB into US$ are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.865 on June 28, 2019, representing the certificated exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 28, 2019, or at any other rate. |
Segment reporting | (s) Segment reporting The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company manages its business as a single operating segment engaged in the provision of distribution and managing wealth management services in the PRC. Substantially all of its revenues are derived in the PRC. All long-lived assets are located in PRC. |
Earnings per share ("EPS") | (t) Earnings per share (“EPS”) Basic EPS is calculated by dividing the net income available to common shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by using the weighted average number of ordinary shares outstanding adjusted to include the potentially dilutive effect of outstanding share-based awards, unless their inclusion in the calculation is anti-dilutive. |
Commitments and contingencies | (u) Commitments and contingencies The Company estimated losses from loss contingencies are accrued by a charge to income when information available before financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. |
Recently issued accounting standards | (v) Recently issued accounting standards In February 2016, the FASB issued ASU No. 2016-02 , Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees' recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. Based on our preliminary assessment, we expect to record a right-of-use asset of approximately RMB28 million and a lease liability of approximately RMB27 million on the adoption date of July 1, 2019, primarily related to our leased office space. In July 2018, the FASB issued ASU No. 2018-11, Collaborative Arrangements (Topic 808), which provide further codification improvements and relieves the requirement to present prior comparative year results when adopting the new lease standard. We will use a modified retrospective approach under ASU 2018-11 and will not restate prior periods. We expect to implement new accounting policies as well as to elect certain practical expedients available to us under ASU 2016-02, including those related to leases with terms of less than 12 months. The conclusions are preliminary and subject to change as the Company finalize the evaluation. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In May 2019, the FASB issued ASU 2019-05, which provides transition relief for entities adopting the Board's credit losses standard, ASU 2016-13. Specifically, ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of the credit losses guidance in ASC 326-20, (3) are eligible for the fair value option under ASC 825-10, and (4) are not held-to-maturity debt securities. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-05 are effective for fiscal years beginning after December 15, 2019, including interim periods therein. An entity may early adopt the ASU in any interim period after its issuance if the entity has adopted ASU 2016-13. For all other entities, the effective date will be the same as the effective date of ASU 2016-13. The Company is in the process of evaluating the impact of adoption of this guidance on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies disclosure requirements for fair value measurements. While some disclosures have been removed or modified, new disclosures have been added. The guidance is effective for us no later than July 1, 2020. Early adoption is permitted, where the Company is permitted to early adopt the portion of the guidance regarding the removal or modification of the fair value measurement disclosures while waiting to adopt the requirement regarding additional disclosures until the effective date. The Company is in the process of evaluating the impact of adoption of this guidance on the Company's consolidated financial statements. Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company's consolidated financial statements upon adoption. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Organization And Principal Activities | |
Schedule of subsidiaries and VIE | Name Date of incorporation/acquired Place of incorporation Percentage of effective ownership Principal Activities Wholly owned subsidiaries Puyi Group July 2018 BVI 100 % Holding company Puyi Holdings (Hong Kong) Limited ("Puyi HK") July 2018 Hong Kong 100 % Holding company Puyi Enterprises Management Consulting Co., Ltd. ("Puyi Consulting" or the Wholly Foreign-Owned Enterprise "WFOE") August 2018 Chengdu 100 % WFOE Variable Interest Entities ("VIEs") Puyi Bohui April 2012 Chengdu 100 % Information technology Puyi Fund November 2010 Chengdu 100 % Fund product distribution Puyi Zhongxiang April 2014 Shenzhen 100 % Financial product distribution Puyi Asset May 2013 Shenzhen 100 % Asset management Chongqing Fengyi December 2016 Chongqing 100 % Corporate financing business Shenzhen Baoying May 2018 Shenzhen 100 % Factoring Zhonghui July 2018 Shenzhen 51 % Asset management |
Schedule of financial statements amounts and balances of the VIE | As of June 30, 2018 2019 2019 RMB RMB US$ Total assets 225,866 479,409 69,834 Total liabilities 32,214 75,833 11,046 Years ended June 30, 2018 2019 2019 RMB RMB US$ Net revenues 165,811 203,231 29,604 Net income 63,617 52,023 7,578 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Estimated useful life Office equipment, furniture and fixtures 3-5 years Leasehold improvements Shorter of the remaining lease terms and estimated useful lives |
Schedule of Disaggregation of revenue | As of June 30, 2018 2019 Wealth management 140,403 193,082 Distribution commissions 126,843 146,207 -- One time commissions 125,866 12 0,509 -- Over period commissions 977 2 5,698 Performance-based distribution fees 13,560 46,875 Corporate financing 13,710 6,271 Asset management 103 2,767 Management fees 103 2,767 Performance-based fees - - Information technology and others 11,595 1,111 Total 165,811 203,231 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of reconciliation of cash, cash equivalents, and restricted cash | Year ended June 30, 2018 2019 2019 RMB RMB US$ Cash and cash equivalent 103,228 378,445 55,127 Restricted cash 8,772 51,823 7,549 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows 112,000 430,268 62,676 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Schedule of investment balances | As of June 30, 2018 2019 2019 RMB RMB US$ Short-term investments - Held-to-maturity investments 5,010 - - Asset management plans 5,010 - - - Private equity funds products - 2,000 291 Total short-term investments 5,010 2,000 291 Long-term investments - Private equity funds products 5,000 2,000 291 Total long-term investments 5,000 2,000 291 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | As of June 30, 2018 2019 2019 RMB RMB US$ Accounts receivable 30,757 27,767 4,045 Allowance for doubtful debts - - - Accounts receivable, net 30,757 27,767 4,045 |
Other Receivables (Tables)
Other Receivables (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Schedule of Other receivables | As of June 30, 2018 2019 2019 RMB RMB US$ Advances to staff 474 373 54 Prepayments to service providers 3,304 3,142 458 Rental deposits 1,680 2,502 364 Other 271 482 71 Other receivables 5,729 6,499 947 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | As of June 30, 2018 2019 2019 RMB RMB US$ Furniture and office equipment 1,784 2,667 388 Leasehold improvements 612 3,951 576 2,396 6,618 964 Less: Accumulated depreciation (1,506 ) (2,592 ) (378 ) Property and equipment, net 890 4,026 586 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets net | As of June 30, 2018 2019 2019 RMB RMB US$ Software and operating system 5,081 4,427 645 Less: Accumulated amortization (4,381 ) (3,694 ) (538 ) Intangible asset, net 700 733 107 |
Other Payables and Accrued Ex_2
Other Payables and Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of components of other payables and accrued expenses | As of June 30, 2018 2019 2019 RMB RMB US$ Payroll payable 3,229 6,149 896 Value-added tax 1,900 1,058 154 Employee's individual income tax 479 725 106 Other miscellaneous taxes 143 30 4 Others 378 695 101 Other payables and accrued expenses 6,129 8,657 1,261 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the income tax provision | Years Ended June 30, 2018 2019 2019 RMB RMB US$ Current 8,490 10,288 1,499 Deferred (229 ) (892 ) (130 ) Total income tax provision 8,261 9,396 1,369 |
Schedule of components of the deferred income tax assets and liabilities | As of June 30, 2018 2019 2019 RMB RMB US$ Non-current deferred tax assets: Tax loss carry forward 4,241 6,062 883 Less: valuation allowances - 929 135 Total 4,241 5,133 748 |
Schedule of reconciliation between the statutory tax rate to income before income taxes | Years ended June 30, 2018 2019 2019 RMB RMB US$ Income from operations before income taxes 71,878 61,419 8,947 PRC income tax statutory rate 25 % 25 % 25 % Income tax at statutory tax rate 17,970 15,355 2,237 Preferential tax treatments and tax holiday effects (8,937 ) (7,019 ) (1,022 ) Super deduction of qualified R&D expenditures (772 ) (857 ) (125 ) Expenses not deductible for tax purposes - 388 57 Uncertain tax provision - 600 87 Valuation allowances - 929 135 Income tax expense 8,261 9,396 1,369 |
Schedule of other tax liabilities | RMB US$ Balance as of June 30, 2016 6,700 1,013 Provisions for uncertain tax positions in fiscal year 2017 2,000 302 Balance as of June 30, 2017 8,700 1,315 Provisions for uncertain tax positions in fiscal year 2018 - - Balance as of June 30, 2018 8,700 1,315 Provisions for uncertain tax positions in fiscal year 2019 600 40 Balance as of June 30, 2019 9,300 1,355 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per ordinary share | Year ended June 30, 2018 2019 2019 RMB RMB US$ Numerator: Net income 63,617 52,023 7,578 Less: Net (loss) attributable to the non-controlling interests (979 ) (1,508 ) (220 ) Net income attributable to the Company's shareholders 64,596 53,531 7,798 Denominator: Weighted average number of ordinary shares outstanding 80,000,000 84,997,628 84,997,628 Basic & diluted net income per ordinary share 0.807 0.630 0.092 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Schedule of related parties with whom the Company conducted significant transactions, and their relationship with the Company | Related parties Relationship Mr. Yu Haifeng Controlling shareholder and Chairman of the Company Puyi Inc.'s founding shareholders before IPO Shareholders of Puyi Inc. before IPO Renshou Xinrui Enterprise Management Center LLP Ultimately controlled by Mr. Yu Fanhua Inc. Shareholder of Puyi Tibet Zhuli Investment Co., Ltd. Subsidiary of Fanhua Inc. Zhonghui Huiguan Investment Management Co., Ltd. Subsidiary of Puyi Inc. Shenzhen Taozhan Trade Co., Ltd. Related party of Zhonghui Red Lake Yongjin No.1 (Shenzhen) Investment LLP A vehicle controlled by Zhonghui's minority shareholder by April 2019 and managed by the Company thereafter |
Schedule of principal related party balances and transactions | Year ended June 30 Nature 2018 2019 2019 RMB RMB US$ Tibet Zhuli Investment Co., Ltd. (a) - 1,048 152 Tibet Zhuli Investment Co., Ltd. (a) - 50,000 7,283 Puyi Inc.'s founding (b) - 529 80 Shenzhen Taozhan Trade Co., Ltd (c) - 410 59 Mr. Yu Haifeng (d) - 80 12 Red Lake Yongjin No.1 (Shenzhen) Investment LLP ( e) - 581 85 Nature of transactions: (a) In August 2018, we received a short-term loan with a principal amount of RMB50.0 million from Tibet Zhuli Investment Co., Ltd. ("Tibet Zhuli"), which was controlled by Fanhua Inc, our shareholder. The amounts are unsecured, bearing interest at 8.5% per annum and are repayable after 6 months from the date of the agreement. As of December 31, 2018, the principal and interest of the loan have been fully paid back. Interest expense from loan payable to Tibet Zhuli recognized in 2018 (b) The five founding shareholders of Puyi Inc. were Worldwide Success Group Limited, Winter Dazzle Limited, Danica Surge Limited, Advance Tycoon Limited and Future One Holdings Limited. During the reporting period, these five shareholders together contributed US$80 (c) In July 2018, we acquired Zhonghui Huiguan Investment Management Co., Ltd.("Zhonghui") which provided a loan of RMB1.0 million to its related party Shenzhen Taozhan Trade Co., Ltd.("Taozhan"). During the reporting period, Taozhan paid back partial of the loan. (d) Repayment of short-term loans. (e) In September 2018, we incurred advisory fee expenses to Red Lake Yongjin No1 (Shenzhen) Investment LLP for a potential non-performing loan project. |
Schedule of acquisition of subsidiaries under common control | As of June 30, 2018 2019 2019 RMB RMB US$ Mr. Yu Haifeng 80 - - Shenzhen Taozhan Trade Co., Ltd. - 590 86 Total 80 590 86 |
Mr. Yu Haifeng [Member] | |
Schedule of principal related party balances and transactions | As of June 30, 2018 2019 2019 RMB RMB US$ Due to principal shareholder for acquisition of subsidiaries 2,116 - - |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Lease Liability Lease Liability RMB US$ Year ending June 30: 2020 7,681 1,119 2021 7,397 1,077 2022 6,807 992 2023 6,115 891 2024 2,034 296 After 2024 370 54 Total 30,404 4,429 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Net revenues [Member] | |
Schedule of concentration risks | Year ended June 30 2018 % of net revenues 2019 2019 % of net revenues RMB RMB US$ Company A 47,856 28.9 % 109,130 15,897 53.7 % Company B 44,452 26.8 % 23,987 3,494 11.8 % Company C 27,855 16.8 % * * * 120,163 72.5 % 133,117 19,391 65.5 % * represented less than 10% of total net revenues for the fiscal year. |
Accounts receivable [Member] | |
Schedule of concentration risks | As of June 30, 2018 % 2019 2019 % RMB RMB US$ Company A 27,633 89.8 % 10,398 1,515 37.4 % Company D * * 5,042 734 18.2 % Company E * * 4,022 586 14.5 % Company F * * 3,630 529 13.1 % 27,633 89.8 % 23,903 3,364 83.2 % * represented less than 10% of account receivables as of the year end. |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Puyi Bohui [Member] | Variable Interest Entities [Member] | |
Date of incorporation/acquired | Apr. 30, 2012 |
Place of incorporation | Chengdu |
Percentage of effective ownership | 100.00% |
Principal Activities | Information technology |
Puyi Fund [Member] | Variable Interest Entities [Member] | |
Date of incorporation/acquired | Nov. 30, 2010 |
Place of incorporation | Chengdu |
Percentage of effective ownership | 100.00% |
Principal Activities | Fund product distribution |
Puyi Zhongxiang [Member] | Variable Interest Entities [Member] | |
Date of incorporation/acquired | Apr. 30, 2014 |
Place of incorporation | Shenzhen |
Percentage of effective ownership | 100.00% |
Principal Activities | Financial product distribution |
Puyi Asset [Member] | Variable Interest Entities [Member] | |
Date of incorporation/acquired | May 31, 2013 |
Place of incorporation | Shenzhen |
Percentage of effective ownership | 100.00% |
Principal Activities | Asset management |
Chongqing Fengyi [Member] | Variable Interest Entities [Member] | |
Date of incorporation/acquired | Dec. 31, 2016 |
Place of incorporation | Chongqing |
Percentage of effective ownership | 100.00% |
Principal Activities | Corporate financing business |
Shenzhen Baoying [Member] | Variable Interest Entities [Member] | |
Date of incorporation/acquired | May 31, 2018 |
Place of incorporation | Shenzhen |
Percentage of effective ownership | 100.00% |
Principal Activities | Factoring |
Zhonghui [Member] | Variable Interest Entities [Member] | |
Date of incorporation/acquired | Jul. 31, 2018 |
Place of incorporation | Shenzhen |
Percentage of effective ownership | 51.00% |
Principal Activities | Asset management |
Wholly owned subsidiaries [Member] | Puyi Group [Member] | |
Date of incorporation/acquired | Jul. 31, 2018 |
Place of incorporation | BVI |
Percentage of effective ownership | 100.00% |
Principal Activities | Holding company |
Wholly owned subsidiaries [Member] | Puyi Holdings (Hong Kong) Limited ("Puyi HK") [Member] | |
Date of incorporation/acquired | Jul. 31, 2018 |
Place of incorporation | Hong Kong |
Percentage of effective ownership | 100.00% |
Principal Activities | Holding company |
Wholly owned subsidiaries [Member] | Puyi Enterprises Management Consulting Co., Ltd. ("Puyi Consulting" or the Wholly Foreign-Owned Enterprise "WFOE") | |
Date of incorporation/acquired | Aug. 31, 2018 |
Place of incorporation | Chengdu |
Percentage of effective ownership | 100.00% |
Principal Activities | WFOE |
Organization and Principal Ac_4
Organization and Principal Activities (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | Jun. 30, 2019CNY (¥) | |
Total assets | ¥ | ¥ 225,866 | ¥ 479,409 | ||
Total liabilities | ¥ | 32,214 | ¥ 75,833 | ||
Net revenues | ¥ | ¥ 203,231 | 165,811 | ||
Net income | ¥ | ¥ 53,531 | ¥ 64,596 | ||
US$ [Member] | ||||
Total assets | $ | $ 69,834 | |||
Total liabilities | $ | 11,046 | |||
Net revenues | $ | 29,604 | |||
Net income | $ | $ 7,798 |
Organization and Principal Ac_5
Organization and Principal Activities (Details Textual) ¥ in Thousands | Aug. 06, 2018CNY (¥) |
Maximum [Member] | |
Organization and Principal Activities (Textual) | |
Investable assets | ¥ 6,000 |
Minimum [Member] | |
Organization and Principal Activities (Textual) | |
Investable assets | ¥ 600 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Estimated useful lives,description | Shorter of the remaining lease terms and estimated useful lives |
Maximum [Member] | |
Estimated useful lives | 5 years |
Minimum [Member] | |
Estimated useful lives | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||
Wealth management | ¥ 193,082 | ¥ 140,403 |
Distribution commissions | 146,207 | 126,843 |
One time commissions | 120,509 | 125,866 |
Over period commissions | 25,698 | 977 |
Performance-based distribution fees | 46,875 | 13,560 |
Corporate financing | 6,271 | 13,710 |
Asset management | 2,767 | 103 |
Management fees | 2,767 | 103 |
Performance-based fees | ||
Information technology and others | 1,111 | 11,595 |
Total | ¥ 203,231 | ¥ 165,811 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of Significant Accounting Policies (Textual) | ||
Uncertain tax positions | ¥ 600 | |
Uncertain tax positions, description | The tax returns of the Company’s PRC subsidiaries and VIEs are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations 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. | |
Foreign Currency Translation and change in reporting currency, description | US$1.00 = RMB6.865 | |
Interest and other income | ¥ 1,000,000 | |
VAT percentage of the gross sales | 6.00% | |
VAT percentage | 6.00% | |
Accounting Standards Update 2016-02 [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Right of use asset | ¥ 28,000 | |
Lease liability | ¥ 27,000 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) | Jun. 30, 2017CNY (¥) |
Cash and cash equivalent | ¥ 378,445 | ¥ 103,228 | |||
Restricted cash | 51,823 | 8,772 | |||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | 430,268 | ¥ 112,000 | ¥ 57,037 | ||
US$ [Member] | |||||
Cash and cash equivalent | $ | $ 55,127 | ||||
Restricted cash | ¥ 7,549 | ||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ | $ 62,676 | $ 16,315 |
Acquisition of Subsidiary (Deta
Acquisition of Subsidiary (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Jul. 18, 2018 | Jun. 30, 2019 | Jul. 31, 2018 | |
Puyi Asset [Member] | ||||
Percentage of equity interest acquired | 51.00% | |||
Capital injection | ¥ 2,550 | |||
Cash consideration | ¥ 1,600 | |||
Zhonghui [Member] | ||||
Percentage of equity interest acquired | 49.00% | 51.00% | ||
Consideration prior to acquisition | ¥ 2,450 | ¥ 2,450 | ||
Net book value on date of acquisition, percentage | 51.00% |
Investments (Details)
Investments (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Short-term investments | |||
Held-to-maturity investments | ¥ | ¥ 5,010 | ||
Asset management plans | ¥ | 5,010 | ||
Private equity funds products | ¥ | 2,000 | ||
Total short-term investments | ¥ | 2,000 | 5,010 | |
Long-term investments | |||
Private equity funds products | ¥ | 2,000 | 5,000 | |
Total long-term investments | ¥ | ¥ 2,000 | ¥ 5,000 | |
US$ [Member] | |||
Short-term investments | |||
Held-to-maturity investments | $ | |||
Asset management plans | $ | |||
Private equity funds products | $ | 291 | ||
Total short-term investments | $ | 291 | ||
Long-term investments | |||
Private equity funds products | $ | 291 | ||
Total long-term investments | $ | $ 291 |
Investments (Details Textual)
Investments (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Notes to Financial Statements | ||
Held-to-maturity investments | ¥ 172 | ¥ 5,144 |
Private equity funds investments | ¥ 10 |
Commercial Acceptance Notes (De
Commercial Acceptance Notes (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
May 18, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Commercial Acceptance Notes (Textual) | |||
Commercial acceptance notes | ¥ 11,380 | ||
Annual discount rate | 8.50% | ||
Maturity date | May 31, 2019 | ||
Interest income | ¥ 738 | ¥ 1,632 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Accounts receivable | ¥ | ¥ 27,767 | ¥ 30,757 | |
Allowance for doubtful debts | ¥ | |||
Accounts receivable, net | ¥ | ¥ 27,767 | ¥ 30,757 | |
US$ [Member] | |||
Accounts receivable | $ | $ 4,045 | ||
Allowance for doubtful debts | $ | |||
Accounts receivable, net | $ | $ 4,045 |
Other Receivables (Details)
Other Receivables (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Advances to staff | ¥ | ¥ 373 | ¥ 474 | |
Prepayments to service providers | ¥ | 3,142 | 3,304 | |
Rental deposits | ¥ | 2,502 | 1,680 | |
Other | ¥ | 482 | 271 | |
Other receivables | ¥ | ¥ 6,499 | ¥ 5,729 | |
US$ [Member] | |||
Advances to staff | $ | $ 54 | ||
Prepayments to service providers | $ | 458 | ||
Rental deposits | $ | 364 | ||
Other | $ | 71 | ||
Other receivables | $ | $ 947 |
Short-Term Loans Receivable (De
Short-Term Loans Receivable (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Loan balance | ¥ 50,000 | ¥ 100,000 | |
Annual interest rate | 10.00% | ||
Short term debt, description | The balance mainly represents a loan of RMB50,000 to a real estate developing company for one year from June 5, 2018 to June 4, 2019, with annual interest of 10%. The loan was guaranteed by the legal representative and the controlling shareholder of the real estate developing company. The loan of RMB50,000 with interests has been early repaid in July 2018. | ||
Interest income | ¥ 310 | ¥ 1,393 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Property and equipment, gross | ¥ | ¥ 6,618 | ¥ 2,396 | |
Less: Accumulated depreciation | ¥ | (2,592) | (1,506) | |
Property and equipment, net | ¥ | 4,026 | 890 | |
US$ [Member] | |||
Property and equipment, gross | $ | $ 964 | ||
Less: Accumulated depreciation | $ | (378) | ||
Property and equipment, net | $ | 586 | ||
Furniture and office equipment | |||
Property and equipment, gross | ¥ | 2,667 | 1,784 | |
Furniture and office equipment | US$ [Member] | |||
Property and equipment, gross | $ | 388 | ||
Leasehold improvements [Member] | |||
Property and equipment, gross | ¥ | ¥ 3,951 | ¥ 612 | |
Leasehold improvements [Member] | US$ [Member] | |||
Property and equipment, gross | $ | $ 576 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property and Equipment, Net (Textual) | ||
Depreciation expense | ¥ 1,122 | ¥ 604 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Less: Accumulated amortization | ¥ | ¥ (3,694) | ¥ (4,381) | |
Intangible asset, net | ¥ | 733 | 700 | |
US$ [Member] | |||
Less: Accumulated amortization | $ | $ (538) | ||
Intangible asset, net | $ | 107 | ||
Software and operating system [Member] | |||
Intangible asset, gross | ¥ | ¥ 4,427 | ¥ 5,081 | |
Software and operating system [Member] | US$ [Member] | |||
Intangible asset, gross | $ | $ 645 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Intangible Assets, Net (Textual) | ||
Amortization expense | ¥ 620 | ¥ 1,261 |
Other Payables and Accrued Ex_3
Other Payables and Accrued Expenses (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Payroll payable | ¥ | ¥ 6,149 | ¥ 3,229 | |
Value-added tax | ¥ | 1,058 | 1,900 | |
Employee's individual income tax | ¥ | 725 | 479 | |
Other miscellaneous taxes | ¥ | 30 | 143 | |
Others | ¥ | 695 | 378 | |
Other payables and accrued expenses | ¥ | ¥ 8,657 | ¥ 6,129 | |
US$ [Member] | |||
Payroll payable | $ | $ 896 | ||
Value-added tax | $ | 154 | ||
Employee's individual income tax | $ | 106 | ||
Other miscellaneous taxes | $ | 4 | ||
Others | $ | 101 | ||
Other payables and accrued expenses | $ | $ 1,261 |
Income Taxes (Details)
Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | |
Current | $ 10,288 | ¥ 8,490 | |
Deferred | (892) | (229) | |
Total income tax provision | ¥ | ¥ 9,396 | ¥ 8,261 | |
US$ [Member] | |||
Current | 1,499 | ||
Deferred | (130) | ||
Total income tax provision | $ 1,369 |
Income Taxes (Details 1)
Income Taxes (Details 1) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2018CNY (¥) |
Non-current deferred tax assets: | ||
Tax loss carry forward, after offset unrecognized tax benefits | $ 6,062 | ¥ 4,241 |
Less: valuation allowances | 929 | |
Total | 5,133 | ¥ 4,241 |
US$ [Member] | ||
Non-current deferred tax assets: | ||
Tax loss carry forward, after offset unrecognized tax benefits | 883 | |
Less: valuation allowances | 135 | |
Total | $ 748 |
Income Taxes (Details 2)
Income Taxes (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | |
Income from operations before income taxes | ¥ | ¥ 61,419 | ¥ 71,878 | ||||
PRC income tax statutory rate | 25.00% | 25.00% | 25.00% | 25.00% | ||
Income tax at statutory tax rate | $ 15,355 | ¥ 17,970 | ||||
Preferential tax treatments and tax holiday effects | (7,019) | (8,937) | ||||
Super deduction of qualified R&D expenditures | (857) | (772) | ||||
Expenses not deductible for tax purposes | ¥ | ¥ 388 | |||||
Uncertain tax provision | ¥ | 600 | ¥ 2,000 | ||||
Allowance for deferred tax assets | ¥ | (929) | |||||
Income tax expense | ¥ | ¥ 9,396 | ¥ 8,261 | ||||
US$ [Member] | ||||||
Income from operations before income taxes | $ 8,947 | |||||
PRC income tax statutory rate | 25.00% | 25.00% | ||||
Income tax at statutory tax rate | $ 2,237 | |||||
Preferential tax treatments and tax holiday effects | (1,022) | |||||
Super deduction of qualified R&D expenditures | (125) | |||||
Expenses not deductible for tax purposes | 57 | |||||
Uncertain tax provision | 87 | $ 302 | ||||
Allowance for deferred tax assets | (135) | |||||
Income tax expense | $ 1,369 |
Income Taxes (Details 3)
Income Taxes (Details 3) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | |
Beginning balance | ¥ | ¥ 8,700 | ¥ 8,700 | ¥ 6,700 | |||
Provisions for uncertain tax positions in fiscal year | ¥ | 600 | 2,000 | ||||
Ending balance | ¥ | ¥ 9,300 | ¥ 8,700 | ¥ 8,700 | |||
US$ [Member] | ||||||
Beginning balance | $ | $ 1,315 | $ 1,315 | $ 1,013 | |||
Provisions for uncertain tax positions in fiscal year | $ | 87 | 302 | ||||
Ending balance | $ | $ 1,355 | $ 1,315 | $ 1,315 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 21, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
VAT percentage of the gross sales | 6.00% | ||
VAT percentage | 6.00% | ||
Percentage of income tax rate | 100.00% | ||
Income tax PRC, description | Pursuant to the relevant laws and regulations in the PRC, Puyi Bohui is regarded as an accredited software company and a High and New Technology Enterprise (“HNTE”), and thus enjoys preferential tax treatments, including being exempted from PRC Income Tax for two years starting from its first profit-making year, followed by a 50% reduction for the next three years. For Puyi Bohui, tax year 2015 was the first profit-making year and accordingly, Puyi Bohui has made a 12.5% tax provision for its profits from January 1, 2018. Puyi Zhongxiang is qualified for Shenzhen Qianhai modern services cooperation district entity tax preference and is subject to an income tax rate for 15%. Chongqing Fengyi and Puyi Consulting are qualified for west development taxation preference and is subject to an income tax rate for 15%. Other PRC subsidiaries are subject to a standard 25% EIT. | ||
Total tax loss carry-forwards | ¥ 28,261 | ¥ 16,965 | |
Hong Kong [Member] | |||
Income tax PRC, description | The Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was gazette on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD2 million will be taxed at 16.5%. | ||
EIT Law [Member] | |||
Income tax PRC, description | The current PRC EIT Law imposes a 10% withholding income tax for dividends distributed by foreign invested enterprises to their immediate holding companies outside the PRC. A lower withholding tax rate will be applied if there is a tax treaty arrangement between the PRC and the jurisdiction of the foreign holding company. Distributions to holding companies in Hong Kong that satisfy certain requirements specified by PRC tax authorities, for example, will be subject to a 5% withholding tax rate. | ||
Minimum [Member] | |||
Percentage of income tax rate | 12.50% | ||
Maximum [Member] | |||
Percentage of income tax rate | 25.00% | ||
June 30, 2021 [Member] | |||
Total tax loss carry-forwards | ¥ 238 | ||
June 30, 2022 [Member] | |||
Total tax loss carry-forwards | 2,317 | ||
June 30, 2023 [Member] | |||
Total tax loss carry-forwards | 10,908 | ||
June 30, 2024 [Member] | |||
Total tax loss carry-forwards | ¥ 14,798 |
Earnings Per Share (Details)
Earnings Per Share (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥)shares | Jun. 30, 2018CNY (¥)shares | Jun. 30, 2018$ / shares | |
Numerator | ||||
Net income | ¥ | ¥ 53,531 | ¥ 64,596 | ||
Less: Net (loss) attributable to the non-controlling interests | ¥ | (1,508) | (979) | ||
Net income attributable to the Company’s shareholders | ¥ | ¥ 53,531 | ¥ 64,596 | ||
Denominator: | ||||
Weighted average number of ordinary shares outstanding | shares | 84,997,628 | 84,997,628 | 80,000,000 | |
Basic & diluted net income per ordinary share | $ / shares | $ 0.630 | $ 0.807 | ||
US$ [Member] | ||||
Numerator | ||||
Net income | $ | $ 7,798 | |||
Less: Net (loss) attributable to the non-controlling interests | $ | (220) | |||
Net income attributable to the Company’s shareholders | $ | $ 7,798 | |||
Denominator: | ||||
Weighted average number of ordinary shares outstanding | shares | 84,997,628 | 84,997,628 | ||
Basic & diluted net income per ordinary share | $ / shares | $ 0.092 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Consolidated net assets | ¥ 347,872 | ¥ 231,277 |
PRC [Member] | ||
Registered capital percentage | 50.00% | |
WFOE [Member] | ||
Registered capital percentage | 50.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Mr. Yu Haifeng [Member] | |
Nature of Common Ownership or Management Control Relationships | Controlling shareholder and Chairman of the Company CEO of the Company until September 20, 2019 |
Puyi Inc.'s founding shareholders before IPO [Member] | |
Nature of Common Ownership or Management Control Relationships | Shareholders of Puyi Inc. before IPO |
Renshou Xinrui Enterprise Management Center LLP [Member] | |
Nature of Common Ownership or Management Control Relationships | Ultimately controlled by Mr. Yu |
Fanhua Inc. [Member] | |
Nature of Common Ownership or Management Control Relationships | Shareholder of Puyi since September 2018 |
Tibet Zhuli Investment Co., Ltd. [Member] | |
Nature of Common Ownership or Management Control Relationships | Subsidiary of Fanhua Inc. |
Zhonghui Huiguan Investment Management Co., Ltd.[Member] | |
Nature of Common Ownership or Management Control Relationships | Subsidiary of Puyi Inc. |
Shenzhen Taozhan Trade Co., Ltd. [Member] | |
Nature of Common Ownership or Management Control Relationships | Related party of Zhonghui |
Red Lake Yongjin No.1 (Shenzhen) Investment LLP [Member] | |
Nature of Common Ownership or Management Control Relationships | A vehicle controlled by Zhonghui's minority shareholder by April 2019 and managed by the Company thereafter |
Related Party Transactions (D_2
Related Party Transactions (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | ||
Tibet Zhuli Investment Co., Ltd. [Member] | ||||
Related party transactions | [1] | ¥ 1,048 | ||
Tibet Zhuli Investment Co., Ltd. [Member] | US$ [Member] | ||||
Related party transactions | $ | [1] | $ 152 | ||
Tibet Zhuli Investment Co., Ltd. One [Member] | ||||
Related party transactions | [1] | 50,000 | ||
Tibet Zhuli Investment Co., Ltd. One [Member] | US$ [Member] | ||||
Related party transactions | $ | [1] | 7,283 | ||
Shenzhen Taozhan Trade Co., Ltd [Member] | ||||
Related party transactions | [2] | 410 | ||
Shenzhen Taozhan Trade Co., Ltd [Member] | US$ [Member] | ||||
Related party transactions | [2] | 59 | ||
Mr. Yu Haifeng [Member] | ||||
Related party transactions | [3] | 80 | ||
Mr. Yu Haifeng [Member] | US$ [Member] | ||||
Related party transactions | [3] | 12 | ||
Puyi Inc.'s founding shareholders [Member] | ||||
Related party transactions | [4] | 529 | ||
Puyi Inc.'s founding shareholders [Member] | US$ [Member] | ||||
Related party transactions | [4] | 80 | ||
Red Lake Yongjin No.1 (Shenzhen) Investment LLP [Member] | ||||
Related party transactions | [5] | ¥ 581 | ||
Red Lake Yongjin No.1 (Shenzhen) Investment LLP [Member] | US$ [Member] | ||||
Related party transactions | $ | [5] | $ 85 | ||
[1] | In August 2018, we received a short-term loan with a principal amount of RMB50.0 million from Tibet Zhuli Investment Co., Ltd., which was controlled by Fanhua Inc, our affiliate. The amounts are unsecured, bearing interest at 8.5% per annum and are repayable after 6 months from the date of the agreement. As of December 31, 2018, the principal and interest of the loan have been fully paid back. Interest expense from loan payable to Tibet Zhuli Investment Co., Ltd. recognized in 2018 was RMB1.0 million (US$0.1million) | |||
[2] | In July 2018, we acquired Zhonghui Huiguan Investment Management Co., Ltd.("Zhonghui") which provided a loan of RMB1.0 million to its related party Shenzhen Taozhan Trade Co., Ltd.("Taozhan"). During the reporting period, Taozhan paid back partial of the loan. | |||
[3] | Repayment of short-term loans. | |||
[4] | The five founding shareholders of Puyi Inc. were Worldwide Success Group Limited, Winter Dazzle Limited, Danica Surge Limited, Advance Tycoon Limited and Future One Holdings Limited. During the reporting period, these five shareholders together contributed US$80 to Puyi Inc. | |||
[5] | In September 2018, we incurred advisory fee expenses to Red Lake Yongjin No1 (Shenzhen) Investment LLP for a potential non-performing loan project. |
Related Party Transactions (D_3
Related Party Transactions (Details 2) ¥ in Thousands, $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Amounts due from related parties | ¥ 590 | ¥ 80 | |
US$ [Member] | |||
Amounts due from related parties | $ | $ 86 | ||
Mr. Yu Haifeng [Member] | |||
Amounts due from related parties | 80 | ||
Mr. Yu Haifeng [Member] | US$ [Member] | |||
Amounts due from related parties | $ | |||
Shenzhen Taozhan Trade Co., Ltd. [Member] | |||
Amounts due from related parties | 590 | ||
Shenzhen Taozhan Trade Co., Ltd. [Member] | US$ [Member] | |||
Amounts due from related parties | ¥ 86 |
Related Party Transactions (D_4
Related Party Transactions (Details 3) ¥ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) |
Due to principal shareholder for acquisition of subsidiaries | ¥ | ¥ 2,116 | ||
US$ [Member] | |||
Due to principal shareholder for acquisition of subsidiaries | $ |
Related Party Transactions (D_5
Related Party Transactions (Details Textual) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | Jun. 30, 2019CNY (¥) | Oct. 31, 2018 | Aug. 31, 2018CNY (¥) | Jul. 31, 2018CNY (¥) | |
Short-term loan | ¥ 50,000 | ¥ 100,000 | |||||||
Unsecured bearing interest rate | 12.00% | ||||||||
Interest expense | ¥ 1,048 | ||||||||
Acquisition of subsidiaries | ¥ 2,116 | ||||||||
US$ [Member] | |||||||||
Interest expense | $ | $ 153 | ||||||||
Acquisition of subsidiaries | $ | |||||||||
Contribution of shares | $ | $ 80 | ||||||||
Tibet Zhuli Investment Co., Ltd. [Member] | |||||||||
Short-term loan | ¥ 50,000 | ||||||||
Unsecured bearing interest rate | 8.50% | ||||||||
Interest expense | ¥ 1,000 | ||||||||
Acquisition of shares | 15.00% | 15.00% | |||||||
Tibet Zhuli Investment Co., Ltd. [Member] | US$ [Member] | |||||||||
Interest expense | $ | $ 100 | ||||||||
Zhonghui Huiguan Investment Management Co., Ltd.[Member] | |||||||||
Acquisition of subsidiaries | ¥ 1,000,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 03, 2018USD ($) | Aug. 06, 2018USD ($) | Mar. 29, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥) | Jun. 30, 2018USD ($)$ / sharesshares | Aug. 06, 2018¥ / sharesshares |
Ordinary shares par value | ¥ / shares | ¥ 0.001 | ||||||
Authorized number of ordinary shares | shares | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||
Issued an aggregate ordinary shares | shares | 90,472,014 | 80,000,000 | 80,000,000 | ||||
Total consideration | $ 80 | ||||||
Equivalent to share capital | $ 90 | $ 80 | |||||
Stock issued during period, value, new issues | ¥ | ¥ 153,330 | ||||||
US$ [Member] | |||||||
Ordinary shares par value | $ / shares | $ 0.001 | $ 0.001 | |||||
US$ [Member] | Fanhua Inc. [Member] | |||||||
Stock issued during period, value, new issues | $ 1,468,977 | ||||||
ADS [Member] | |||||||
Ordinary shares par value | $ / shares | $ 6 | ||||||
Issued an aggregate ordinary shares | shares | 4,292,276 | ||||||
ADS [Member] | US$ [Member] | |||||||
Proceeds from issuance of common stock | $ 22,900 |
Non-Controlling Interest (Detai
Non-Controlling Interest (Details) - CNY (¥) ¥ in Thousands | Sep. 03, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 05, 2018 | Jul. 31, 2018 | Jul. 04, 2018 | Jun. 30, 2018 |
Non-controlling interest in the consolidated balance sheet | ¥ 3,173 | ¥ 8,859 | |||||
Beijing Fanlian [Member] | |||||||
Equity interest percentage | 100.00% | ||||||
Cash consideration | ¥ 10,000 | ||||||
NCI's book value | ¥ 8,200 | ||||||
Additional new ordinary shares | 4,033,600 | ||||||
New ordinary shares | ¥ 10,000 | ||||||
Zhonghui [Member] | |||||||
Equity interest percentage | 49.00% | 51.00% | |||||
Non-controlling interest in the consolidated balance sheet | 1,580 | ||||||
Asset Management acquired percentage | 51.00% | ||||||
Consideration prior to acquisition | ¥ 2,450 | ¥ 2,450 | |||||
Puyi Asset [Member] | |||||||
Equity interest percentage | 51.00% | ||||||
Asset Management acquired percentage | 15.41% |
Guarantee (Details)
Guarantee (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2019 | Oct. 31, 2018 | Aug. 31, 2018 |
Guarantees and Product Warranties [Abstract] | |||
Short-term loan | ¥ 50,000 | ¥ 100,000 | |
Unsecured bearing interest rate | 12.00% |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - Jun. 30, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Year ending June 30: | ||
2020 | ¥ | ¥ 7,681 | |
2021 | ¥ | 7,397 | |
2022 | ¥ | 6,807 | |
2023 | ¥ | 6,115 | |
2024 | ¥ | 2,034 | |
After 2024 | ¥ | 370 | |
Total | ¥ | ¥ 30,404 | |
US$ [Member] | ||
Year ending June 30: | ||
2020 | $ | $ 1,119 | |
2021 | $ | 1,077 | |
2022 | $ | 992 | |
2023 | $ | 891 | |
2024 | $ | 296 | |
After 2024 | $ | 54 | |
Total | $ | $ 4,429 |
Commitment and Contingencies _2
Commitment and Contingencies (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Commitment and Contingencies (Textual) | ||
Rental expenses incurred under operating leases | ¥ 7,645 | ¥ 4,026 |
Concentrations (Details)
Concentrations (Details) - Net revenues [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | ||||
Total net revenues | ¥ | ¥ 133,117 | ¥ 120,163 | ||||
Net revenues, percentage | 65.50% | 65.50% | 72.50% | |||
US$ [Member] | ||||||
Total net revenues | $ | $ 19,391 | |||||
Company A [Member] | ||||||
Total net revenues | ¥ | ¥ 109,130 | ¥ 47,856 | ||||
Net revenues, percentage | 53.70% | 53.70% | 28.90% | |||
Company A [Member] | US$ [Member] | ||||||
Total net revenues | $ | $ 15,897 | |||||
Company B [Member] | ||||||
Total net revenues | ¥ | ¥ 23,987 | ¥ 44,452 | ||||
Net revenues, percentage | 11.80% | 11.80% | 26.80% | |||
Company B [Member] | US$ [Member] | ||||||
Total net revenues | $ | $ 3,494 | |||||
Company C [Member] | ||||||
Total net revenues | ¥ | [1] | ¥ 27,855 | ||||
Net revenues, percentage | [1] | [1] | 16.80% | |||
Company C [Member] | US$ [Member] | ||||||
Total net revenues | $ | [1] | |||||
[1] | represented less than 10% of total net revenues for the fiscal year. |
Concentrations (Details 1)
Concentrations (Details 1) - Accounts Receivable [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | ||
Accounts receivable | ¥ | ¥ 23,903 | ¥ 27,633 | ||
Accounts receivable, percentage | 83.20% | 83.20% | 89.80% | |
US$ [Member] | ||||
Accounts receivable | $ | $ 3,364 | |||
Company A [Member] | ||||
Accounts receivable | ¥ | ¥ 10,398 | ¥ 27,633 | ||
Accounts receivable, percentage | 37.40% | 37.40% | 89.80% | |
Company A [Member] | US$ [Member] | ||||
Accounts receivable | $ | $ 1,515 | |||
Company D [Member] | ||||
Accounts receivable | ¥ | ¥ 5,042 | [1] | ||
Accounts receivable, percentage | 18.20% | 18.20% | [1] | |
Company D [Member] | US$ [Member] | ||||
Accounts receivable | $ | $ 734 | |||
Company E [Member] | ||||
Accounts receivable | ¥ | ¥ 4,022 | [1] | ||
Accounts receivable, percentage | 14.50% | 14.50% | [1] | |
Company E [Member] | US$ [Member] | ||||
Accounts receivable | $ | $ 586 | |||
Company F [Member] | ||||
Accounts receivable | ¥ | ¥ 3,630 | [1] | ||
Accounts receivable, percentage | 13.10% | 13.10% | [1] | |
Company F [Member] | US$ [Member] | ||||
Accounts receivable | $ | $ 529 | |||
[1] | represented less than 10% of account receivables as of the year end. |
Concentrations (Details Textual
Concentrations (Details Textual) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net revenues [Member] | ||
Concentration risks, percentage | 65.50% | 72.50% |
Net revenues [Member] | Customer [Member] | ||
Concentration risks, percentage | 10.00% | |
Accounts Receivable [Member] | Customer [Member] | ||
Concentration risks, percentage | 10.00% |