Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | Puyi Inc. |
Trading Symbol | PUYI |
Document Type | 20-F |
Current Fiscal Year End Date | --06-30 |
Entity Common Stock, Shares Outstanding | 90,472,014 |
Amendment Flag | false |
Entity Central Index Key | 0001750264 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38813 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 61F, Pearl River Tower |
Entity Address, Address Line Two | No. 15 Zhujiang West Road |
Entity Address, Address Line Three | Zhujiang New Town, Tianhe |
Entity Address, City or Town | Guangzhou |
Entity Address, Country | CN |
Title of 12(b) Security | Ordinary Shares, par value $0.001 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 5395 |
Auditor Name | Marcum Asia CPAs LLP |
Auditor Location | New York |
Entity Address, Postal Zip Code | 510623 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 61F, Pearl River Tower |
Entity Address, Address Line Two | No. 15 Zhujiang West Road |
Entity Address, Address Line Three | Zhujiang New Town, Tianhe |
Entity Address, City or Town | Guangzhou |
Entity Address, Country | CN |
Contact Personnel Name | Hu Anlin |
City Area Code | +86 |
Local Phone Number | 020-28381666 |
Entity Address, Postal Zip Code | 510623 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 194,259 | $ 29,002 | ¥ 260,593 |
Restricted cash | 118,796 | 17,736 | 72,189 |
Accounts receivable, net | 59,507 | 8,884 | 55,154 |
Short-term investments | 5,000 | 746 | |
Other receivables and current assets | 14,298 | 2,135 | 14,669 |
Amount due from related parties | 2,895 | 432 | 721 |
Total current assets | 394,755 | 58,935 | 403,326 |
Property and equipment, net | 9,156 | 1,367 | 10,018 |
Intangible assets, net | 1,114 | 166 | 1,599 |
Long-term prepayments | 551 | 82 | 43 |
Deferred tax assets | 23,978 | 3,580 | 21,588 |
Right-of-use assets | 34,382 | 5,134 | 31,329 |
Total assets | 463,936 | 69,264 | 467,903 |
Current liabilities: | |||
Accounts payable (including the consolidated VIEs amount without recourse to the Company of RMB12,863 and RMB11,125 as of June 30, 2021 and 2022, respectively) | 11,668 | 1,742 | 12,299 |
Investors’ deposit (including the consolidated VIEs amount without recourse to the Company of RMB72,189 and RMB118,796 as of June 30, 2021 and 2022, respectively) | 118,796 | 17,736 | 72,189 |
Other payables and accrued expenses (including the consolidated VIEs amount without recourse to the Company of RMB57,857 and RMB 62,479 as of June 30, 2021 and 2022, respectively) | 19,445 | 2,903 | 19,124 |
Lease liabilities, current (including the consolidated VIEs amount without recourse to the Company of RMB7,659 and RMB4,855 as of June 30, 2021 and 2022, respectively) | 11,889 | 1,775 | 13,705 |
Income taxes payable (including the consolidated VIEs amount without recourse to the Company of RMB1,106 and RMB3,536 as of June 30, 2021 and 2022, respectively) | 3,536 | 528 | 875 |
Other tax liabilities, current (including the consolidated VIEs amount without recourse to the Company of RMB10,940 and RMB nil as of June 30, 2021 and 2022, respectively) | 12,100 | ||
Amount due to related parties (including the consolidated VIEs amount without recourse to the Company of nil and RMB292 as of June 30, 2021 and 2022, respectively) | 292 | 44 | |
Advance receipts from related parties (including the consolidated VIEs amount without recourse to the Company of nil and nil as of June 30, 2021 and 2022, respectively) | 1,500 | 224 | |
Total current liabilities | 167,126 | 24,952 | 130,292 |
Other tax liabilities, non-current (including the consolidated VIEs amount without recourse to the Company of RMB nil and RMB11,730 as of June 30, 2021 and 2022, respectively) | 13,500 | 2,015 | |
Lease liabilities, non-current (including the consolidated VIEs amount without recourse to the Company of RMB7,351 and RMB15,154 as of June 30, 2021 and 2022, respectively) | 23,259 | 3,472 | 17,310 |
Total liabilities | 203,885 | 30,439 | 147,602 |
Commitments and contingencies | |||
EQUITY: | |||
Ordinary shares (2,000,000,000 shares at US$0.001 each authorized, and 90,472,014 shares issued and outstanding as of June 30, 2021 and 2022) | 600 | 90 | 600 |
Additional paid-in capital | 224,694 | 33,546 | 224,694 |
Statutory reserves | 23,314 | 3,481 | 23,103 |
Retained earnings | 11,836 | 1,767 | 72,714 |
Accumulated other comprehensive loss | (393) | (59) | (810) |
Total Puyi Inc.’s equity | 260,051 | 38,825 | 320,301 |
Non-controlling interests | |||
Total equity | 260,051 | 38,825 | 320,301 |
Total liabilities and equity | ¥ 463,936 | $ 69,264 | ¥ 467,903 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) - CNY (¥) ¥ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts payable VIE amount | ¥ 11,125 | ¥ 12,863 |
Investors’ deposit VIE amount | 118,796 | 72,189 |
Other payables and accrued expenses VIE amount | 62,479 | 57,857 |
Lease liabilities, current VIE amount | 4,855 | 7,659 |
Income taxes payable VIE amount | 3,536 | 1,106 |
Other tax liabilities VIE amount | 10,940 | |
Amount due to related parties VIE amount | 292 | |
Advance receipts VIE amount | ||
Other tax liabilities, non-current VIE amount | 11,730 | |
Lease liabilities, non-current VIE amount | ¥ 15,154 | ¥ 7,351 |
Ordinary shares authorized (in Shares) | 2,000,000,000 | 2,000,000,000 |
Ordinary shares, issued (in Shares) | 90,472,014 | 90,472,014 |
Ordinary shares, outstanding (in Shares) | 90,472,014 | 90,472,014 |
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | ¥ 0.001 | ¥ 0.001 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 CNY (¥) ¥ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 CNY (¥) ¥ / shares shares | Jun. 30, 2020 CNY (¥) ¥ / shares shares | |
Net revenues: | ||||
Wealth management | ¥ 171,541 | $ 25,610 | ¥ 176,589 | ¥ 106,444 |
Corporate financing | 6 | |||
Asset management | 5,890 | 879 | 13,464 | 23,033 |
Consulting and others | 11,310 | 1,689 | 1,147 | |
Total net revenues | 188,741 | 28,178 | 191,200 | 129,483 |
Operating costs and expenses: | ||||
Cost of sales | (33,834) | (5,051) | (44,043) | (31,759) |
Selling expenses | (126,743) | (18,922) | (130,145) | (84,074) |
General and administrative expenses | (102,267) | (15,268) | (90,194) | (67,174) |
Total operating costs and expenses | (262,844) | (39,241) | (264,382) | (183,007) |
Loss from operations | (74,103) | (11,063) | (73,182) | (53,524) |
Other income, net: | ||||
Investment income | 1,899 | 1,499 | ||
Interest income | 7,474 | 1,116 | 10,919 | 11,003 |
Sundry income, net | 5,037 | 752 | 4,690 | 5,077 |
Loss before income taxes | (61,592) | (9,195) | (55,674) | (35,945) |
Income tax benefit | 925 | 138 | 9,608 | 2,394 |
Net loss | (60,667) | (9,057) | (46,066) | (33,551) |
Less: net income (loss) attributable to non-controlling interests | 304 | (648) | ||
Net loss attributable to Puyi Inc.’s shareholders | ¥ (60,667) | $ (9,057) | ¥ (46,370) | ¥ (32,903) |
Net loss per share: | ||||
Basic and diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.671) | $ (0.1) | ¥ (0.513) | ¥ (0.364) |
Net loss per ADS: | ||||
Basic and diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (1.006) | $ (0.15) | ¥ (0.77) | ¥ (0.546) |
Weighted average number of shares used in computation: | ||||
Basic and diluted (in Shares) | 90,472,014 | 90,472,014 | 90,472,014 | 90,472,014 |
Net loss | ¥ (60,667) | $ (9,057) | ¥ (46,066) | ¥ (33,551) |
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments | 417 | 62 | (1,277) | 456 |
Total comprehensive loss | (60,250) | (8,995) | (47,343) | (33,095) |
Less: Comprehensive income (loss) attributable to the non-controlling interests | 304 | (648) | ||
Comprehensive loss attributable to Puyi Inc.’s shareholders | ¥ (60,250) | $ (8,995) | ¥ (47,647) | ¥ (32,447) |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) | 12 Months Ended | |||
Jun. 30, 2022 ¥ / shares shares | Jun. 30, 2022 $ / shares shares | Jun. 30, 2021 ¥ / shares shares | Jun. 30, 2020 ¥ / shares shares | |
Income Statement [Abstract] | ||||
Diluted | (per share) | ¥ (0.671) | $ (0.100) | ¥ (0.513) | ¥ (0.364) |
Diluted | (per share) | ¥ (1.006) | $ (0.150) | ¥ (0.770) | ¥ (0.546) |
Diluted (in Shares) | 90,472,014 | 90,472,014 | 90,472,014 | 90,472,014 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity ¥ in Thousands, $ in Thousands | Share Capital CNY (¥) shares | Share Capital USD ($) shares | Additional Paid-in Capital CNY (¥) | Additional Paid-in Capital USD ($) | Statutory Reserves CNY (¥) | Statutory Reserves USD ($) | Retained Earnings CNY (¥) | Retained Earnings USD ($) | Accumulated Other Comprehensive Income (loss) CNY (¥) | Accumulated Other Comprehensive Income (loss) USD ($) | Non-controlling Interests CNY (¥) | Non-controlling Interests USD ($) | CNY (¥) | USD ($) |
Balance at Jun. 30, 2019 | ¥ 600 | ¥ 224,702 | ¥ 19,824 | ¥ 155,266 | ¥ 11 | ¥ 3,173 | ¥ 403,576 | |||||||
Balance (in Shares) at Jun. 30, 2019 | shares | 90,472,014 | 90,472,014 | ||||||||||||
Net income (loss) | (32,903) | (648) | (33,551) | |||||||||||
Provision for statutory reserves | 2,049 | (2,049) | ||||||||||||
Other comprehensive income (Loss): foreign currency translation adjustments | 456 | 456 | ||||||||||||
Balance at Jun. 30, 2020 | ¥ 600 | 224,702 | 21,873 | 120,314 | 467 | 2,525 | 370,481 | |||||||
Balance (in Shares) at Jun. 30, 2020 | shares | 90,472,014 | 90,472,014 | ||||||||||||
Net income (loss) | (46,370) | 304 | (46,066) | |||||||||||
Provision for statutory reserves | 1,238 | (1,238) | ||||||||||||
Cancellation of Baoying | (8) | (8) | 8 | (8) | ||||||||||
Disposal of Zhonghui | (2,829) | (2,829) | ||||||||||||
Other comprehensive income (Loss): foreign currency translation adjustments | (1,277) | (1,277) | ||||||||||||
Balance at Jun. 30, 2021 | ¥ 600 | 224,694 | 23,103 | 72,714 | (810) | 320,301 | ||||||||
Balance (in Shares) at Jun. 30, 2021 | shares | 90,472,014 | 90,472,014 | ||||||||||||
Net income (loss) | (60,667) | (60,667) | $ (9,057) | |||||||||||
Provision for statutory reserves | 211 | (211) | ||||||||||||
Other comprehensive income (Loss): foreign currency translation adjustments | 417 | 417 | ||||||||||||
Balance at Jun. 30, 2022 | ¥ 600 | ¥ 224,694 | ¥ 23,314 | ¥ 11,836 | ¥ (393) | ¥ 260,051 | 38,825 | |||||||
Balance (in Shares) at Jun. 30, 2022 | shares | 90,472,014 | 90,472,014 | ||||||||||||
Balance as of June 30, 2022 in US$ (in Dollars) | $ | $ 90 | $ 33,546 | $ 3,481 | $ 1,767 | $ (59) | $ 38,825 | ||||||||
Balance as of June 30, 2022 in US$ (in Shares) | shares | 90,472,014 | 90,472,014 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (60,667) | $ (9,057) | ¥ (46,066) | ¥ (33,551) |
Adjustments to reconcile net loss to net cash generated from operating activities: | ||||
Depreciation | 5,603 | 837 | 3,165 | 1,998 |
Amortization of intangible assets | 832 | 124 | 604 | 370 |
Provision on uncertain tax liability | 1,400 | 209 | 2,800 | |
Investment income | (653) | (1,499) | ||
Interest income | 697 | 104 | 2,196 | (2,893) |
Allowance for deferred tax assets | 3,775 | 564 | 230 | 2,160 |
Amortization of right-of-use assets | 13,636 | 2,036 | 9,868 | 6,749 |
Bad debt provision | 6,892 | |||
Gain on disposal of Zhonghui | (1,237) | |||
Discontinued operations of Baoying | (8) | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (4,353) | (650) | (17,830) | (18,937) |
Other receivables and current assets | 2,339 | 349 | (7,803) | (163) |
Accounts payable | (631) | (94) | 3,262 | 3,164 |
Investor’s deposit | 46,607 | 6,958 | 69,219 | (48,853) |
Other payables and accrued expenses | 322 | 48 | 3,415 | 7,098 |
Advance receipts | 1,500 | 224 | (475) | 241 |
Deferred tax assets | (6,164) | (920) | (10,910) | (7,936) |
Income taxes payable | (5) | (1) | (1,762) | 2,995 |
Increase in amount due from related parties | (2,175) | (325) | (721) | |
Increase in amounts due to related parties | 292 | 44 | ||
Lease liabilities | (12,556) | (1,875) | (10,119) | (6,584) |
Net cash used in operating activities | (9,548) | (1,425) | (2,825) | (88,749) |
Cash flows from investing activities: | ||||
Proceeds from disposal of short-term investments and commercial acceptance notes | 2,653 | 41,199 | ||
Purchase of short-term investments | (5,000) | (746) | (40,000) | |
Purchase of property and equipment | (4,741) | (708) | (8,432) | (2,748) |
Prepaid for intangible assets | (508) | (76) | (13) | (875) |
Purchase of intangible assets | (347) | (52) | (601) | |
Distribution of short-term loans receivable | (130,000) | (19,408) | (240,000) | |
Collection of short-term loans receivable | 130,000 | 19,408 | 50,000 | 190,000 |
Loans provided to related parties | (837) | |||
Repayment of loans from related parties | 204 | 180 | ||
Proceeds from disposal of subsidiaries | 4,179 | |||
Net cash provided by (used in) investing activities | (10,596) | (1,582) | 47,990 | (53,081) |
Cash flows from financing activities: | ||||
Net cash provided by financing activities | ||||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (20,144) | (3,007) | 45,165 | (141,830) |
Cash and cash equivalents, and restricted cash at beginning of year | 332,782 | 49,683 | 288,894 | 430,268 |
Effect of exchange rate changes on cash and cash equivalents | 417 | 62 | (1,277) | 456 |
Cash and cash equivalents, and restricted cash at end of year | 313,055 | 46,738 | 332,782 | 288,894 |
Supplementary disclosure of cash flow information: | ||||
Cash paid for income taxes | 5 | 1 | 30 | 762 |
Supplementary disclosure related to operating leases: | ||||
New operating lease liabilities arose from obtaining right-of-use assets | 27,245 | 4,068 | 20,317 | 4,417 |
Change on lease liabilities arose from modification on lease terms | (474) | (71) | (507) | 1,430 |
Change on lease liabilities arose from early termination of operating leases | ¥ (10,739) | $ (1,603) | ¥ (1,287) | ¥ (2,850) |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Jun. 30, 2022 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Puyi Inc. (“Puyi”, or the “Company”), whose principal shareholder is Mr. Yu Haifeng, is a holding company incorporated on August 6, 2018 in Cayman Islands, and listed on the Nasdaq on March 29, 2019. The Company, its subsidiaries and the consolidated variable interest entities (the “VIEs” or the “consolidated VIEs”) are collectively referred to as the “Group”. The Group primarily provides wealth management services to China’s large and growing emerging middle class and affluent population, whom are defined as those with at least RMB 30 and RMB 600 in investable assets, respectively. The Company’s subsidiaries and the VIEs as of June 30, 2022 include the following: Name Date of Place of Percentage of Principal 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 Puyi Dake May 2020 Chengdu 100% Information technology Puyi FO May 2022 Zhuhai 100% Trust consulting 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 Effective on September 6, 2018, Mr. Yu Haifeng and Ms. Yang Yuanfen, then shareholders of Puyi Bohui, and WFOE entered into a series of contractual agreements (“VIE Agreements” which are described below). On June 30, 2022, WFOE has duly purchased Ms. Yang Yuanfen’s 0.96% equity interest in Puyi Bohui by exercising its exclusive option under the Exclusive Option Agreement, therefore Mr. Yu Haifeng and WFOE hold 99.04% and 0.96% equity interest respectively in Puyi Bohui as of the date of this Annual Report. 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 the consolidated VIEs. Accordingly, the Company consolidates the operations, assets and liabilities of Puyi Bohui and its subsidiaries. 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 conducts the business activities through the consolidated VIEs, Puyi Bohui and its subsidiaries. WFOE has entered into the following contractual arrangements with Puyi Bohui and its principal shareholder, which enables the Company to (i) have power to direct the activities that most significantly affect the economic performance of Puyi Bohui and its subsidiaries, (ii) receive substantially all of the economic benefits of Puyi Bohui, and (iii) have an exclusive option to purchase all or part of the principal shareholder’s equity interests/assets in Puyi Bohui when and to the extent permitted by PRC law. As a result of these contractual arrangements, the Company assumes all of risk of losses of Puyi Bohui and has the exclusive right to exercise all voting rights of Puyi Bohui’s principal shareholder. 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, Mr. Yu Haifeng and Ms. Yang Yuanfen, then shareholders of Puyi Bohui, each executed a Power of Attorney Agreement with WFOE and Puyi Bohui, whereby such then shareholders of Puyi Bohui irrevocably appointed and constituted WFOE as their attorney-in-fact to exercise on the then shareholders’ behalf any and all rights that such then shareholders of Puyi Bohui have in respect of their equity interests in Puyi Bohui. As of the date of this Annual Report, Mr. Yu Haifeng’s power of attorney shall remain effective, while Ms. Yang Yuanfen’s has ceased to be effective since WFOE has duly purchased Ms. Yang Yuanfen’s 0.96% equity interest in Puyi Bohui by exercising its exclusive option under the Exclusive Option Agreement on June 30, 2022. Mr. Yu Haifeng’s Power of Attorney document has become effective since September 6, 2018 and will remain irrevocable and continuously effective and valid as long as Mr. Yu Haifeng shall remain as shareholder of Puyi Bohui. (2) Exclusive Option Agreement. Puyi Bohui and its principal shareholder Mr. Yu Haifeng has entered into an Exclusive Option Agreement with WFOE on September 6, 2018. Under the Exclusive Option Agreement, he 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 his equity interests in Puyi Bohui. According to the Exclusive Option Agreement, the purchase price to be paid by the Company to Mr. Yu Haifeng will be amounts permitted by applicable PRC Law at the time when such share transfer occurs. The Exclusive Option Agreement became effective on September 6, 2018 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 for 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 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 principal shareholder. (4) Equity Interest Pledge Agreement. Under the Equity Interest Pledge Agreement dated September 6, 2018 among Puyi Bohui, the principal shareholder of Puyi Bohui Mr. Yu Haifeng and WFOE, Mr. Yu Haifeng agreed to pledge all of his equity interest in Puyi Bohui in favor of 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 this 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 from the pledged equity interests. Mr. Yu Haifeng 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. Mr. Yu Haifeng agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on his 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 have been fulfilled by Puyi Bohui, or upon the transfer of Mr. Yu Haifeng’s equity interests under the Exclusive Option Agreement entered into among the parties to this Agreement. (5) Spousal Consent Letters. On September 6, 2018, the spouse of Mr. Yu Haifeng, the principal shareholder of Puyi Bohui, executed a Spousal Consent, pursuant to which the spouse irrevocably agreed that the equity interest in Puyi Bohui held by Mr. Yu Haifeng and registered in his name will be disposed of pursuant to the Equity Interest Pledge Agreement, the Exclusive Option Agreement and the Powers of Attorney. The spouse of Mr. Yu Haifeng agreed not to assert any rights over Mr. Yu Haifeng’s equity interest in Puyi Bohui. In addition, in the event that she obtains any equity interest in Puyi Bohui through Mr. Yu Haifeng for any reason, she agreed to be bound by the contractual arrangements. Risks in relation to the VIE structure The Company believes that the contractual arrangements with the VIE and its principal shareholder 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 subsidiaries and the VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and the VIEs; ● 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 subsidiaries and the VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiaries and the VIEs 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 business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiaries or the VIEs. The interests of the principal shareholder of the VIEs may diverge from that of the Company and that may potentially increase the risk that he would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Company cannot assure that when conflicts of interest arise, the principal shareholder of the VIEs will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest the principal shareholder of the VIEs may encounter in his capacity as beneficial owner and director of the VIEs, on the one hand, and as beneficial owner and director of the Company, on the other hand. The Company believes the principal shareholder of the VIEs will not act contrary to any of the contractual arrangements and the Exclusive Option Agreement which has provided the Company with a mechanism to remove the current principal shareholder of the VIE should he act to the detriment of the Company. The Company relies on the principal shareholder of the VIEs to fulfill his fiduciary duties and abide by laws of the PRC and act in the best interest of the Company. Should the Company be unable to resolve any conflicts of interest or disputes between the Company and the principal shareholder of the VIEs, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there would be substantial uncertainty as to the outcome of any such legal proceedings. A substantial portion of assets and liabilities presented on the Group’s Consolidated Statements of Financial Position and sales, expense, net income presented on Consolidated Statement of Operations and Comprehensive Loss as well as the cash flow from operating, investing and financing activities presented on the Consolidated Statements of Cash Flows are from the financial position, operation and cash flow of Puyi Bohui and its subsidiaries. The following financial statements amounts and balances of the VIEs were included in the accompanying consolidated financial statements and are presented before the elimination of intercompany transactions with the non-VIE subsidiaries of the Group as of June 30, 2021 and 2022 and for the years ended June 30, 2020, 2021 and 2022. As of June 30, 2021 2022 2022 RMB RMB US$ Total assets 329,552 353,941 52,842 Total liabilities 169,965 227,967 34,035 Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Net revenues 179,256 193,013 159,181 23,765 Net income 12,767 (41,727 ) (33,613 ) (5,018 ) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2022 | |
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 Group 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 Group, all of its majority-owned subsidiaries and the VIEs of which the Group 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 Group 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 Group’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 mainly represents the investors’ uninvested cash balances temporarily deposited in the Group’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 misuse of investors’ funds. (e) Accounts receivable, other receivables and current assets, and amount due from related parties, net Accounts receivable, other receivables and current assets 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 Group’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable, other receivables and current assets and amount due from related parties. The Group 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 Group did not have any off-balance-sheet credit exposure relating to its customers, suppliers or others. As of June 30, 2021 and 2022, the Group recorded RMB6,892 as allowances for doubtful accounts against its accounts receivable. There were no allowances for doubtful accounts against the Group’s other receivables and current assets and amount due from related parties nor did the Group charge off any such amounts. (f) Short-term loans receivable The Group 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 Group records as short-term loans receivable. The Group recognized interest income on an accrue basis using the straight-line method over the fixed or determinable dates. (g) Investments The Group accounts for the investments pursuant to FASB ASC Topic 321, Investments-Equity Securities and ASC Topic 323, Investments-Equity Method and Joint Ventures. As of June 30, 2022, the Group recorded an investment in a private fund as short-term investment on the Consolidated Statements of Financial Position under the equity method. This investment was classified as short-term because the management believes that the purpose of holding this investment is for effective use of idle cash and the estimated holding period is short-term, and this investment does not have lock-up period and can be redeemed without restriction. Gains or losses were realized when such investments’ fair value changed. The Group monitors the investments for impairment indicators and makes appropriate reduction in carrying values as required whenever events or changes in circumstances indicate that the assets may be impaired. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Group’s intent and ability to hold the investment to determine whether an impairment has occurred. The Group has not recorded an impairment for each of the years ended June 30, 2020, 2021 and 2022. (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, fixtures 3-5 years Motor vehicles 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 Group 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 Group 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 Group 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 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, 2020, 2021 and 2022. (k) Revenue recognition The Group applies the five-step model outlined in ASC 606, Revenue from Contracts with Customers (“ASC 606”), 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. The Group generates revenues mainly from wealth management, and the Group started to generate revenues from asset management since April 2018 and insurance consulting service since January 2021. Wealth management Revenue from wealth management mainly includes distribution commissions and performance-based distribution fees, in a typical arrangement in which the Group serves as distributor. Distribution commissions Distribution commissions include one-time commissions and recurring management fees. Distribution commissions are primarily generated from distributions of financial products, including publicly raised fund products, privately raised fund products and other financial products. The Group 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. The Group defines the “distribution of a financial product” for its revenue recognition purpose at the time when both of the following two criteria are met: (i) the product purchaser (the “investor”) has entered into a purchase or subscription contract with the relevant product issuer or fund manager and the investor has transferred the subscription fund to an escrow account designated by the product issuer or fund manager and (ii) the product issuer or fund manager has issued a formal notice to confirm the distribution of a financial product. One-time commissions are calculated by multiplying a pre-agreed charge rate with the amount of products distributed, and are recorded at a point in time when the financial product is established or distributed. The Company charges an additional one-time commission fee for publicly raised funds distributed, by multiplying a pre-agreed charge rate with the amount of redemption, when the investor chooses to redeem the financial products. One-time commissions are typically paid on or shortly after the transaction is completed. The Group also charges recurring management fees from the financial products issuers. Recurring management fees are recorded over time, and determined based on the types of financial products the Group distributes and calculated as either (i) pre-agreed percentage with the daily outstanding balance confirmed with the issuer, prorated daily, (ii) pre-agreed charge rate with the amount of products distributed, prorated by the actual period length of the product, or (iii) as a percentage of the fair value of the total investment in the financial products, calculated daily. Recurring management fees are typically paid on a regular basis (typically quarterly or annually) and are not subject to clawback once determined. Performance-based distribution fees Performance-based distribution fees are contributed by the distribution of privately raised fund products. The Group 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 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. Asset management Revenue from asset management service mainly includes management fees and performance-based carried interest, in a typical arrangement in which the Group serves as the fund manager. Management fees Revenue from asset management, includes management fee from the privately raised funds managed by the Group. The single performance obligation is to manage and operate the fund in accordance with the contract throughout the fund duration. 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 a range of 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 carried interest Performance-based carried interest is contributed by the Group managing and operating of privately raised fund products. The Group earns performance-based carried interest based on the extent by which the fund’s investment performance exceeds a certain threshold. Such performance-based fee is typically calculated and recognized at a point of time when the cumulative return of the fund can be determined, and is not subject to clawback provisions. Insurance consulting service Revenue from insurance consulting service mainly includes initial service fees and renewal service fees, in a typical arrangement in which the Group serves as the policyholder referral service provider rather than the principal of the sales of insurance policy. Initial service fees Revenue from initial service fees is based on first year premiums contributed by policyholders referred by the Group to insurance agency company, and includes initial commissions, initial promotion bonus and initial performance bonus. The single performance obligation is to provide policyholder referral service to insurance agency company. Initial service fees are recognized at a point of time when the Group satisfies its promise of referring policyholder to insurance agency company and an insurance policy is successfully signed and effective by the policyholder. Initial commissions are determined by multiplying a pre-agreed charge rate with first year premiums. Initial promotion bonus is determined by multiplying a pre-agreed charge rate with certain insurance products’ first year premiums. Initial performance bonus is variable according to different threshold of the total first year premiums. Initial service fees are recognized in the net amount the Group receives from the insurance agency company. Renewal service fees Revenue from renewal service fees are based on actual renewal premiums paid by policyholders referred by the Group to insurance agency company, and includes renewal commissions, renewal compensation and renewal performance bonus. Renewal service fees, which are considered as variable consideration, are not included in the initial transaction price and are recorded when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, i.e., when a policyholder pays the renewal premium to the insurance company and the policy is renewed, because the Group is not able to conclude a significant reversal to the estimated variable consideration not probable until the contingency resolved. Renewal commissions are determined by multiplying a pre-agreed charge rate with renewal premiums actually paid by the policyholders. Renewal compensation is determined by multiplying a pre-agreed charge rate with certain insurance products’ renewal premiums actually paid by the policyholders. Renewal performance bonus is variable according to different threshold of the total renewal premiums. Renewal service fees are recognized in the net amount the Group receives from the insurance agency company. Disaggregation of revenue Years ended June 30, 2020 2021 2022 RMB RMB RMB Wealth management 106,444 176,589 171,541 Distribution commissions 99,600 176,573 168,489 -- One-time commissions 69,196 109,308 80,943 -- Recurring management fees 30,404 67,265 87,546 Performance-based distribution fees 6,844 16 3,052 Corporate financing 6 - - Asset management 23,033 13,464 5,890 Management fees 6,393 5,626 3,476 Performance-based fees 16,640 7,838 2,414 Consulting and other services - 1,147 11,310 Insurance consulting services (1) - 1,138 9,394 Other services (2) - 9 1,916 Total 129,483 191,200 188,741 (1) Insurance consulting services were started from January 2021, and were recognized at a point of time. (2) Other services primarily consist of trust consulting services started from July 2021, and were recognized at a point of time. Contract liability Contract liability relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance and was recorded as “Advance receipts from related parties” in the Consolidation Statement of Financial Position. The amount of revenue recognized during the years ended June 30, 2021 and 2022 that was previously included in the contract liabilities balance as of June 30, 2020 and 2021 was RMB421 and nil (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 have referred to the Group, and (2) transaction fees paid to the third-party payment platforms through which the investors purchase funds are transferred. (m) Income taxes The Group 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 Group 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 Consolidated Statement of Operations and Comprehensive Loss in the period that includes the enactment date. (n) Uncertain tax positions The Group 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 Group 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 threshold be sustained under examination. The tax returns of the Group’s PRC subsidiaries and the 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. For the years ended June 30, 2020, 2021 and 2022, the Group recognized nil (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 Group’s PRC subsidiaries and the consolidated VIEs are subject to VAT at 6% of their revenues. (p) Non-controlling interest A non-controlling interest in a subsidiary of the Group represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Group. Non-controlling interests are presented as a separate component of equity on the Consolidated Statements of Financial Position and net income and other comprehensive income are attributed to controlling and non-controlling interests. (q) Fair value of financial instruments The Group 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 Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The 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 Group’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, short-term investments, advance receipts from related parties, accounts payable, investors’ deposit, amounts due from and due to related parties, approximate their fair values due to the short-term nature of these instruments. (r) Leases Starting from the year ended June 30, 2020, the Group adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Group has operating leases primarily for office space. The determination of whether an arrangement is a lease or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on the Group’s Consolidated Statements of Financial Position. Operating lease ROU assets represent the Group’s right to use an underlying asset for the lease term and operating lease liabilities represent the Group’s obligation to make lease payments arising from the lease. The Group uses its estimated incremental borrowing rate as of the commencement date in determining the present value of lease payments. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. To determine the incremental borrowing rate used to calculate the present value of future lease payments, the Group uses information including the Group’s credit rating, interest rates of similar debt instruments of entities with comparable credit ratings, as applicable. Variable components of the lease payments such as utilities, maintenance costs are expensed as incurred and not included in determining the present value. The lease terms include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. The Group considers these options, which may be elected at the Group’s sole discretion, in determining the lease term on a lease-by-lease basis. Lease expense is recognized on a straight-line basis over the lease term. The Group has an accounting policy election to exempt leases with an initial term of 12 months or less from being recognized on the balance sheet. (s) Foreign currency translation The Group’s reporting and functional currency is Renminbi (“RMB”). The Group’s operations are principally conducted through the subsidiaries and the VIEs located in the PRC where the RMB is the functional currency. For those subsidiaries and the 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 Group’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 Operations and Comprehensive Loss. Translations of amounts from RMB into US$ are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.6981 on June 30, 2022, representing the certificated exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2022, or at any other rate. (t) Segment reporting The Group uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group 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. (u) Earnings per share (“EPS”) Basic EPS is calculated by dividing the net income (loss) 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. (v) Commitments and contingencies The Group 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. (w) Recently issued accounting standards 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. This ASU has subsequently been amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020-03. The standard will replace today’s incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019, and effective for all other entities for annual and interim periods beginning after December 15, 2022. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. The Group is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). It requires issuers to make annual disclosures about government assistance, including the nature of the transaction, the related accounting policy, the financial statement line items affected and the amounts applicable to each financial statement line item, as well as any significant terms and conditions, including commitments and contingencies. The amendments in this Update are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. Early application of the amendments is permitted. An entity should apply the amendments in this Update either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to th |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Jun. 30, 2022 | |
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 Statements of Financial Position that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows. Years ended June 30, 2021 2022 2022 RMB RMB US$ Cash and cash equivalent 260,593 194,259 29,002 Restricted cash 72,189 118,796 17,736 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows 332,782 313,055 46,738 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Jun. 30, 2022 | |
Short-Term Investments [Abstract] | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS The following table summarizes the Group’s investment balances: As of June 30, 2021 2022 2022 RMB RMB US$ Short-term investments - Private fund product - 5,000 746 Total short-term investments - 5,000 746 The Group purchased a private fund product in September 2021 with RMB5 million cash consideration. The Group accounted for this private fund investment using the equity method of accounting since the Group had more than minor interest in this fund. It was classified as short-term investment because the Group believed that the purpose of holding this product is for effective use of idle cash and the Group can redeem this fund without restrictions. The Group recorded investment income on these investments of RMB1,499, RMB653 and nil |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET As of June 30, 2021 2022 2022 RMB RMB US$ Accounts receivable 62,046 66,399 9,913 Allowance for doubtful accounts 6,892 6,892 1,029 Accounts receivable, net 55,154 59,507 8,884 All of the accounts receivable are non-interest bearing. Accounts receivable mainly represent amounts due from product providers and are recorded net of allowance for doubtful accounts. The Group considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the product providers’ payment history, creditworthiness, financial conditions of the product providers and industry trend. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. The Group also makes specific allowance if there is strong evidence indicating that the accounts receivable is likely to be unrecoverable. Accounts receivable balances are written off after all collection efforts have been exhausted. The Group recorded allowance for doubtful accounts of RMB6,892 as of June 30, 2021 and 2022. No allowance for doubtful accounts were written off for the years ended June 30, 2021 and 2022. |
Other Receivables and Current A
Other Receivables and Current Assets | 12 Months Ended |
Jun. 30, 2022 | |
Other Receivables [Abstract] | |
OTHER RECEIVABLES AND CURRENT ASSETS | 6. OTHER RECEIVABLES AND CURRENT ASSETS Other receivables and current assets consist of the following: As of June 30, 2021 2022 2022 RMB RMB US$ Advances to staff 972 855 128 Prepayments to service providers 6,190 5,252 784 Rental deposits 6,729 5,523 825 Income tax prepayments - 2,666 398 Other 778 2 - Other receivables and current assets 14,669 14,298 2,135 |
Short-Term Loans Receivable
Short-Term Loans Receivable | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LOANS RECEIVABLE | 7. SHORT-TERM LOANS RECEIVABLE The Group provided loans to a third-party real estate developing company in order to optimize the idle cash. During the year ended June 30, 2020, the Group provided loans totaling RMB240,000, of which RMB190,000 has been repaid in the same year. As of June 30, 2020, the group had one short-term loan of RMB50,000 and accrued interest of RMB2,893 which had been fully repaid in December 2020. As of June 30, 2021, the Group did not have short-term loans receivable. During the year ended June 30, 2022, the Group provided loans totaling RMB130,000, all of which has been repaid in the same year. As of June 30, 2022, the Group did not have short-term loans receivable. The aforementioned loans were guaranteed by the legal representative and the controlling shareholder of the real estate developing company. The interest rate ranged from 5% to 12% per annum, and the interest had been paid with the repayment of principle. The Group recognized interest income on short-term loans receivable of approximate RMB5,386, RMB2,730 and RMB790 during the years ended June 30, 2020, 2021 and 2022, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment, net, is comprised of the following: As of June 30, 2021 2022 2022 RMB RMB US$ Furniture, office equipment, fixtures 3,946 5,151 769 Leasehold improvements 11,535 11,405 1,703 Motor vehicles 1,650 1,932 288 17,131 18,488 2,760 Less: Accumulated depreciation (7,113 ) (9,332 ) (1,393 ) Property and equipment, net 10,018 9,156 1,367 Depreciation expense for the years ended June 30, 2020, 2021 and 2022 was RMB1,998, RMB3,165 and RMB5,603, respectively. RMB3,384 of leasehold improvements has been fully amortized and eliminated from ending balance as of June 30, 2022. No impairment for property and equipment was recorded for the years ended June 30, 2020, 2021 and 2022. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET As of June 30, 2021 2022 2022 RMB RMB US$ Software and operating system 6,267 6,614 987 Less: Accumulated amortization (4,668 ) (5,500 ) (821 ) Intangible assets, net 1,599 1,114 166 Amortization expense for the years ended June 30, 2020, 2021 and 2022 was RMB370, RMB604 and RMB832, respectively. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
LEASES | 10. LEASES The Group’s lease payments for office space leases include fixed rental payments and do not consist of any variable lease payments that depend on an index or a rate. As of June 30, 2021 and 2022, there was no leases that have not yet commenced. The following represents the aggregate ROU assets and related lease liabilities as of June 30, 2021 and 2022: As of June 30, 2021 2022 2022 RMB RMB US$ Right-of-use assets 31,329 34,382 5,134 Lease liabilities, current 13,705 11,889 1,775 Lease liabilities, non-current 17,310 23,259 3,472 Total operating lease liabilities 31,015 35,148 5,247 The weighted average lease term and weighted average discount rate as of June 30, 2021 and 2022 were as follows: As of June 30, 2021 2022 Weighted average lease term: Operating leases 2.40 years 3.31 years Weighted average discount rate: Operating leases 4.75 % 4.75 % The components of lease expenses for the years ended June 30, 2021 and 2022 were as follows: Years ended June 30, 2021 2022 2022 RMB RMB US$ Operating lease expenses 11,129 14,757 2,203 Short-term lease expenses 2,740 7,346 1,097 Total 13,869 22,103 3,300 Supplemental cash flow information related to leases for the years ended June 30, 2021 and 2022 were as follows: Years ended June 30, 2021 2022 2022 RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease 10,879 13,739 2,051 Supplement noncash information New operating lease liabilities arose from obtaining right-of-use assets 20,317 27,245 4,068 Change on lease liabilities arose from modification on lease terms (507 ) (474 ) (71 ) Change on lease liabilities arose from early termination of operating leases (1,287 ) (10,739 ) (1,603 ) Maturities of lease liabilities at June 30, 2022: As of June 30, 2022 2022 RMB US$ Year ending June 30: 2023 13,352 1,993 2024 10,491 1,566 2025 6,404 956 2026 6,388 954 Thereafter 1,609 240 Total remaining undiscounted lease payments 38,244 5,709 Less: Interest 3,096 462 Total present value of lease liabilities 35,148 5,247 Less: Current operating lease liabilities 11,889 1,775 Non-current operating lease liabilities 23,259 3,472 |
Investors' Deposit
Investors' Deposit | 12 Months Ended |
Jun. 30, 2022 | |
Statistical Disclosure for Banks [Abstract] | |
INVESTORS' DEPOSIT | 11. INVESTORS’ DEPOSIT The balance of RMB118,796 represents the investors’ uninvested cash balances temporarily deposited in the Group’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 misuse of investors’ funds. |
Other Payables and Accrued Expe
Other Payables and Accrued Expenses | 12 Months Ended |
Jun. 30, 2022 | |
Other Payables and Accrued Expenses [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | 12. OTHER PAYABLES AND ACCRUED EXPENSES Components of other payables and accrued expenses are as follows: As of June 30, 2021 2022 2022 RMB RMB US$ Payroll payable 16,246 13,844 2,067 Accrued expenses 4,781 3,924 586 Value-added tax recoverable (3,696 ) (700 ) (105 ) Employee’s individual income tax 1,268 407 61 Others 525 1,970 294 Other payables and accrued expenses 19,124 19,445 2,903 Accrued expenses mainly consisted of accrued marketing and sales promotion expenses for activities on publicly raised fund products. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. |
Sundry Income, Net
Sundry Income, Net | 12 Months Ended |
Jun. 30, 2022 | |
Sundry Income, Net [Abstract] | |
SUNDRY INCOME, NET | 13. SUNDRY INCOME, NET Components of sundry income, net are as follows: Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Government grants 5,104 4,945 4,528 676 Others (27 ) (255 ) 509 76 Total sundry income, net 5,077 4,690 5,037 752 Government grants were recognized as other income when received upon the compliance with the conditions, and primarily represented subsidies received from the local governments as reward for financial contribution and capital expenditure incurred on certain projects. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 14. INCOME TAXES The Group and its subsidiaries, and the consolidated VIEs file tax returns separately. Cayman Islands The Group is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Group 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 Group’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 Group’s subsidiary and the 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, from January 1, 2017 to December 31, 2019 Puyi Bohui has made a 12.5% tax provision for its profits; beginning from January 1, 2020, Puyi Bohui is qualified for west development taxation preference and is subject to an income tax rate for 15%. 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 are subject to an income tax rate for 15%. Dake is regarded as an accredited software company since June 2021, 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. As Dake had a loss in the fiscal year 2022, it is exempted for income tax. Puyi FO and other PRC subsidiaries are subject to a standard 25% EIT. The components of the income tax expenses (benefit) are as follows: Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Current 3,382 1,072 1,464 219 Deferred (5,776 ) (10,680 ) (2,389 ) (357 ) Total income tax benefit (2,394 ) (9,608 ) (925 ) (138 ) The principal components of the deferred income tax assets and liabilities are as follows: As of June 30, 2021 2022 2022 RMB RMB US$ Deferred tax assets: Tax loss carry forward 22,149 28,314 4,227 Allowance for doubtful accounts, credit losses and impairment losses 1,723 1,723 257 Subtotal 23,872 30,037 4,484 Less: valuation allowances 2,284 6,059 904 Total 21,588 23,978 3,580 The Group 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 Group’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 Group’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 Group had total tax loss carry-forwards of RMB121,530 and RMB184,258 as of June 30, 2021 and 2022, respectively. As of June 30, 2022, the tax loss carry-forwards of RMB3,880, RMB4,429, RMB37,760, RMB71,809, and RMB66,380 are to expire in the years ending June 30, 2023, 2024, 2025, 2026 and 2027, respectively. During the years ended June 30, 2020, 2021 and 2022, 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, 2020 2021 2022 2022 RMB RMB RMB US$ Income (loss) from operations before income taxes (35,945 ) (55,674 ) (61,592 ) (9,195 ) PRC income tax statutory rate 25 % 25 % 25 % 25 % Income tax expense (benefit) at statutory tax rate (8,986 ) (13,919 ) (15,398 ) (2,299 ) Preferential tax treatments 4,633 403 7,186 1,073 Super deduction of qualified R&D expenditures 447 (360 ) - - Expenses not deductible for tax purposes 391 998 695 103 Uncertain tax provision - 2,800 1,400 209 Tax expenses not deductible for book purposes (727 ) - - - Reversal of previously-recognized DTA due to changes in applicable tax rate - - 768 116 Impact of different tax rates in other jurisdictions (312 ) 354 385 57 Others - (114 ) 264 39 Valuation allowances 2,160 230 3,775 564 Income tax expense (benefit) (2,394 ) (9,608 ) (925 ) (138 ) 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, 2021 and 2022, the Group had not recorded any withholding tax on the retained earnings of its foreign invested enterprises in the PRC, since the Group 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 Group analyzes its uncertain income tax positions concerning transfer pricing on a regular basis, which were primarily concerned with sales activities conducted among the subsidiaries and the VIEs that had different income tax rates (ranging from nil The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of June 30, 2020, 2021 and 2022 the Group had RMB9,300, RMB12,100, and RMB13,500 of unrecognized tax benefits that if recognized would affect the annual effective tax rate. We recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. For years ended June 30, 2020, 2021 and 2022 the Group recognized no interest or penalty expense related to unrecognized tax benefits. Movements of unrecognized tax benefits are as follows: RMB US$ Balance as of July 1, 2019 9,300 1,355 Provisions for uncertain tax positions during the year ended June 30, 2020 - - Balance as of June 30, 2020 9,300 1,316 Provisions for uncertain tax positions during the year ended June 30, 2021 2,800 434 Balance as of June 30, 2021 12,100 1,874 Provisions for uncertain tax positions during the year ended June 30, 2022 1,400 209 Balance as of June 30, 2022 13,500 2,015 |
Loss Per Share
Loss Per Share | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | 15. LOSS PER SHARE The computation of basic and diluted net loss per ordinary share is as follows: Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Numerator: Net loss (33,551 ) (46,066 ) (60,667 ) (9,057 ) Less: Net income (loss) attributable to the non-controlling interests (648 ) 304 - - Net loss attributable to the Group’s shareholders (32,903 ) (46,370 ) (60,667 ) (9,057 ) Denominator: Weighted average number of ordinary shares outstanding 90,472,014 90,472,014 90,472,014 90,472,014 Basic & diluted net loss per ordinary share (0.364 ) (0.513 ) (0.671 ) (0.100 ) |
Condensed Financial Statements
Condensed Financial Statements of the Company | 12 Months Ended |
Jun. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS OF THE COMPANY | 16. CONDENSED FINANCIAL STATEMENTS OF THE COMPANY The condensed financial information of the Company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Group’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries and the VIEs. The Company was in control of its subsidiaries and the primary beneficiary of the VIEs throughout the periods presented. Condensed Statements of Financial Position As of June 30, 2021 2022 2022 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 12,770 11,732 1,752 Amounts due from other subsidiaries - 77 11 Total current assets 12,770 11,809 1,763 Investments in subsidiaries 307,741 248,459 37,094 Total assets 320,511 260,268 38,857 LIABILITIES AND EQUITY: LIABILITIES: Current liabilities: Other payables and accrued expenses 210 217 32 Total current liabilities 210 217 32 Total liabilities 210 217 32 Commitments and contingencies EQUITY: Ordinary shares (2,000,000,000 shares at US$0.001 each authorized, and 90,472,014 shares issued and outstanding as of June 30, 2021 and 2022) 600 600 90 Additional paid-in capital 224,694 224,694 33,546 Retained earnings 95,817 35,150 5,248 Accumulated other comprehensive income (810 ) (393 ) (59 ) Total equity 320,301 260,051 38,825 Total liabilities and equity 320,511 260,268 38,857 Condensed Statements of Operations and Comprehensive Loss Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ General and administrative expenses (1,286 ) (1,369 ) (1,610 ) (240 ) Other income, net 188 68 227 34 Equity in loss of subsidiaries (31,805 ) (45,067 ) (59,220 ) (8,841 ) Loss before income taxes (32,903 ) (46,368 ) (60,603 ) (9,047 ) Income tax expense - (2 ) (64 ) (10 ) Net loss (32,903 ) (46,370 ) (60,667 ) (9,057 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 456 (1,277 ) 417 62 Total Comprehensive loss (32,447 ) (47,647 ) (60,250 ) (8,995 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transaction [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS The following is a list of the related parties with whom the Group conducted significant transactions, and their relationship with the Group: Related parties Relationship Fanhua Inc. (“Fanhua”) Shareholder of Puyi since September 2018 who has approximately 4.5% of Puyi and shares a common director with the Group. Fanhua Lianxing Insurance Sales Co., Ltd. (“Fanhua Lianxing”) Subsidiary of Fanhua Inc. Shenzhen Red Lake Shengchuang Investment LLP (“Shengchuang”) Ultimately controlled by Mr. Tang Jianping who was a minority shareholder of Zhonghui which was a subsidiary of Puyi then. As we disposed Zhonghui in December 2020, this entity was not our related party since then. Jinhui Red Lake (Shenzhen) Enterprise Management Co., Ltd. (“Jinhui”) Mr. Tang Jianping is the executive partner of this entity. As we disposed Zhonghui in December 2020, this entity was not our related party since then. Fanhua Yuntong Enterprise Management Advisory (Shenzhen) Co., Ltd. (“Fanhua Yuntong”) Subsidiary of Fanhua Inc. Related party transactions: Years ended June 30, Note 2020 2021 2022 2022 RMB RMB RMB US$ Loan provided to related parties Shengchuang a 718 - - - Jinhui b 119 - - - Subtotal 837 - - - Repayment of loan from related parties Shengchuang a 175 - - - Jinhui b 5 - - - Subtotal 180 - - - Other services Insurance consulting service income accrued from Fanhua Lianxing c - 1,146 9,439 1,409 Insurance consulting service income received from Fanhua Lianxing c - 494 7,831 1,169 Trust consulting service income accrued from Fanhua Lianxing d - - 1,425 213 Trust consulting service income received in advance from Fanhua Lianxing d - - 3,010 449 Selling expense Promotion expense accrued to Fanhua Yuntong e - - 1,243 186 Promotion expense paid to Fanhua Yuntong e - - 975 146 Notes (a) Zhonghui provided interest free loans to Shengchuang from December 2019 to June 2020. As we disposed Zhonghui in December 2020, this entity was not our related party since then. (b) Zhonghui provided interest free loans to Jinhui from February 2020 to June 2020. As we disposed Zhonghui in December 2020, this entity was not our related party since then. (c) Starting from January 2021, the Group cooperated with Fanhua Lianxing and provided insurance consulting service. (d) Starting from January 2022, the Group cooperated with Fanhua Lianxing and provided trust consulting service. (e) Starting from August 2021, the Group cooperated with Fanhua Yuntong and Fanhua Yuntong provided client referral service to us. Amounts due from related parties: As of June 30, Note 2021 2022 2022 RMB RMB US$ Fanhua Lianxing c 721 2,895 432 Total 721 2,895 432 Advance receipts from related parties: As of June 30, Note 2021 2022 2022 RMB RMB US$ Fanhua Lianxing d - (1,500 ) (224 ) Total - (1,500 ) (224 ) Amount due to related parties: As of June 30, Note 2021 2022 2022 RMB RMB US$ Fanhua Yuntong e - (292 ) (44 ) Total - (292 ) (44 ) |
Non-Controlling Interest
Non-Controlling Interest | 12 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | 18. NON-CONTROLLING INTEREST On July 3, 2018, the Group acquired 51% equity interest of Zhonghui. Zhonghui was sold to a third party in December 2020, and had been divested from our consolidated financial statement since then. As of June 30, 2020, 2021 and 2022, non-controlling interest related to the 49% minority interest in Zhonghui was RMB2,525, nil nil For the year ended June 30, 2020, 2021 and 2022, non-controlling interest related to Zhonghui in the Consolidated Statements of Operations and Comprehensive Loss was loss of RMB648, gain of RMB304 and nil |
Statutory Reserve
Statutory Reserve | 12 Months Ended |
Jun. 30, 2022 | |
Statutory Reserve [Abstract] | |
STATUTORY RESERVE | 19. STATUTORY RESERVE Subsidiaries and the VIEs operate in the PRC are required to reserve 10% of their net profits after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Group is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Group in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital. This statutory reserve is not distributable in the form of cash dividends. As of June 30, 2021 and 2022, the balance of statutory reserve was RMB23,103 and RMB23,314, respectively. |
Concentrations
Concentrations | 12 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 20. CONCENTRATIONS Concentration risks Details of the customers accounting for 10% or more of total net revenues are as follows: Years ended June 30, 2020 % of net 2021 % of net 2022 2022 % of net RMB RMB RMB US$ Company A * * 29,264 15.3 % 35,611 5,317 18.9 % Company B 45,921 35.5 % 122,723 64.2 % 47,642 7,113 25.2 % Company C 14,703 11.3 % * * * * * Company D 16,790 13.0 % * * * * * 77,414 59.8 % 151,987 79.5 % 83,253 12,430 44.1 % * represented less than 10% of total net revenues for the year then ended. Details of the customers which accounted for 10% or more of accounts receivable, net are as follows: As of June 30, 2021 % 2022 2022 % RMB RMB US$ Company A 31,662 57.4 % 40,762 6,086 68.5 % Company B 16,484 29.9 % 6,078 907 10.2 % 48,146 87.3 % 46,840 6,993 78.7 % |
Contingencies
Contingencies | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 21. CONTINGENCIES In the ordinary course of business, the Group may be subject to legal proceeding regarding contractual and employment relationships and a variety of other matters. The Group 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 Group has no significant pending litigation as of issuance date of the financial statements. |
Impact of Covid-19
Impact of Covid-19 | 12 Months Ended |
Jun. 30, 2022 | |
Impact Of Covid19 Abstract | |
IMPACT OF COVID-19 | 22. IMPACT OF COVID-19 The COVID-19 continues to have, a severe and negative impact on the Chinese and the global economy. Whether this will lead to a prolonged downturn in the economy is still unknown. The global spread of COVID-19 pandemic in major countries of the world have and may continue result in global economic distress, and the nature of and extent to which it may affect the Group’s results of operations will depend on future developments of the COVID-19 pandemic, which are highly uncertain and difficult to predict. There may be potential continuing impacts on subsequent periods if the pandemic and the resulting disruption were to extend over a prolonged period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 23. SUBSEQUENT EVENTS The Group 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. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | (a) Basis of presentation and consolidation The consolidated financial statements of the Group 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 Group, all of its majority-owned subsidiaries and the VIEs of which the Group 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 Group 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 Group’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 mainly represents the investors’ uninvested cash balances temporarily deposited in the Group’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 misuse of investors’ funds. |
Accounts receivable, other receivables and current assets, and amount due from related parties, net | (e) Accounts receivable, other receivables and current assets, and amount due from related parties, net Accounts receivable, other receivables and current assets 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 Group’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable, other receivables and current assets and amount due from related parties. The Group 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 Group did not have any off-balance-sheet credit exposure relating to its customers, suppliers or others. As of June 30, 2021 and 2022, the Group recorded RMB6,892 as allowances for doubtful accounts against its accounts receivable. There were no allowances for doubtful accounts against the Group’s other receivables and current assets and amount due from related parties nor did the Group charge off any such amounts. |
Short-term loans receivable | (f) Short-term loans receivable The Group 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 Group records as short-term loans receivable. The Group recognized interest income on an accrue basis using the straight-line method over the fixed or determinable dates. |
Investments | (g) Investments The Group accounts for the investments pursuant to FASB ASC Topic 321, Investments-Equity Securities and ASC Topic 323, Investments-Equity Method and Joint Ventures. As of June 30, 2022, the Group recorded an investment in a private fund as short-term investment on the Consolidated Statements of Financial Position under the equity method. This investment was classified as short-term because the management believes that the purpose of holding this investment is for effective use of idle cash and the estimated holding period is short-term, and this investment does not have lock-up period and can be redeemed without restriction. Gains or losses were realized when such investments’ fair value changed. The Group monitors the investments for impairment indicators and makes appropriate reduction in carrying values as required whenever events or changes in circumstances indicate that the assets may be impaired. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Group’s intent and ability to hold the investment to determine whether an impairment has occurred. The Group has not recorded an impairment for each of the years ended June 30, 2020, 2021 and 2022. |
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, fixtures 3-5 years Motor vehicles 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 Group 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 Group 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 Group 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 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, 2020, 2021 and 2022. |
Revenue recognition | (k) Revenue recognition The Group applies the five-step model outlined in ASC 606, Revenue from Contracts with Customers (“ASC 606”), 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. The Group generates revenues mainly from wealth management, and the Group started to generate revenues from asset management since April 2018 and insurance consulting service since January 2021. Wealth management Revenue from wealth management mainly includes distribution commissions and performance-based distribution fees, in a typical arrangement in which the Group serves as distributor. Distribution commissions Distribution commissions include one-time commissions and recurring management fees. Distribution commissions are primarily generated from distributions of financial products, including publicly raised fund products, privately raised fund products and other financial products. The Group 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. The Group defines the “distribution of a financial product” for its revenue recognition purpose at the time when both of the following two criteria are met: (i) the product purchaser (the “investor”) has entered into a purchase or subscription contract with the relevant product issuer or fund manager and the investor has transferred the subscription fund to an escrow account designated by the product issuer or fund manager and (ii) the product issuer or fund manager has issued a formal notice to confirm the distribution of a financial product. One-time commissions are calculated by multiplying a pre-agreed charge rate with the amount of products distributed, and are recorded at a point in time when the financial product is established or distributed. The Company charges an additional one-time commission fee for publicly raised funds distributed, by multiplying a pre-agreed charge rate with the amount of redemption, when the investor chooses to redeem the financial products. One-time commissions are typically paid on or shortly after the transaction is completed. The Group also charges recurring management fees from the financial products issuers. Recurring management fees are recorded over time, and determined based on the types of financial products the Group distributes and calculated as either (i) pre-agreed percentage with the daily outstanding balance confirmed with the issuer, prorated daily, (ii) pre-agreed charge rate with the amount of products distributed, prorated by the actual period length of the product, or (iii) as a percentage of the fair value of the total investment in the financial products, calculated daily. Recurring management fees are typically paid on a regular basis (typically quarterly or annually) and are not subject to clawback once determined. Performance-based distribution fees Performance-based distribution fees are contributed by the distribution of privately raised fund products. The Group 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 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. Asset management Revenue from asset management service mainly includes management fees and performance-based carried interest, in a typical arrangement in which the Group serves as the fund manager. Management fees Revenue from asset management, includes management fee from the privately raised funds managed by the Group. The single performance obligation is to manage and operate the fund in accordance with the contract throughout the fund duration. 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 a range of 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 carried interest Performance-based carried interest is contributed by the Group managing and operating of privately raised fund products. The Group earns performance-based carried interest based on the extent by which the fund’s investment performance exceeds a certain threshold. Such performance-based fee is typically calculated and recognized at a point of time when the cumulative return of the fund can be determined, and is not subject to clawback provisions. Insurance consulting service Revenue from insurance consulting service mainly includes initial service fees and renewal service fees, in a typical arrangement in which the Group serves as the policyholder referral service provider rather than the principal of the sales of insurance policy. Initial service fees Revenue from initial service fees is based on first year premiums contributed by policyholders referred by the Group to insurance agency company, and includes initial commissions, initial promotion bonus and initial performance bonus. The single performance obligation is to provide policyholder referral service to insurance agency company. Initial service fees are recognized at a point of time when the Group satisfies its promise of referring policyholder to insurance agency company and an insurance policy is successfully signed and effective by the policyholder. Initial commissions are determined by multiplying a pre-agreed charge rate with first year premiums. Initial promotion bonus is determined by multiplying a pre-agreed charge rate with certain insurance products’ first year premiums. Initial performance bonus is variable according to different threshold of the total first year premiums. Initial service fees are recognized in the net amount the Group receives from the insurance agency company. Renewal service fees Revenue from renewal service fees are based on actual renewal premiums paid by policyholders referred by the Group to insurance agency company, and includes renewal commissions, renewal compensation and renewal performance bonus. Renewal service fees, which are considered as variable consideration, are not included in the initial transaction price and are recorded when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, i.e., when a policyholder pays the renewal premium to the insurance company and the policy is renewed, because the Group is not able to conclude a significant reversal to the estimated variable consideration not probable until the contingency resolved. Renewal commissions are determined by multiplying a pre-agreed charge rate with renewal premiums actually paid by the policyholders. Renewal compensation is determined by multiplying a pre-agreed charge rate with certain insurance products’ renewal premiums actually paid by the policyholders. Renewal performance bonus is variable according to different threshold of the total renewal premiums. Renewal service fees are recognized in the net amount the Group receives from the insurance agency company. Disaggregation of revenue Years ended June 30, 2020 2021 2022 RMB RMB RMB Wealth management 106,444 176,589 171,541 Distribution commissions 99,600 176,573 168,489 -- One-time commissions 69,196 109,308 80,943 -- Recurring management fees 30,404 67,265 87,546 Performance-based distribution fees 6,844 16 3,052 Corporate financing 6 - - Asset management 23,033 13,464 5,890 Management fees 6,393 5,626 3,476 Performance-based fees 16,640 7,838 2,414 Consulting and other services - 1,147 11,310 Insurance consulting services (1) - 1,138 9,394 Other services (2) - 9 1,916 Total 129,483 191,200 188,741 (1) Insurance consulting services were started from January 2021, and were recognized at a point of time. (2) Other services primarily consist of trust consulting services started from July 2021, and were recognized at a point of time. Contract liability Contract liability relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance and was recorded as “Advance receipts from related parties” in the Consolidation Statement of Financial Position. The amount of revenue recognized during the years ended June 30, 2021 and 2022 that was previously included in the contract liabilities balance as of June 30, 2020 and 2021 was RMB421 and nil |
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 have referred to the Group, 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 Group 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 Group 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 Consolidated Statement of Operations and Comprehensive Loss in the period that includes the enactment date. |
Uncertain tax positions | (n) Uncertain tax positions The Group 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 Group 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 threshold be sustained under examination. The tax returns of the Group’s PRC subsidiaries and the 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. For the years ended June 30, 2020, 2021 and 2022, the Group recognized nil |
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 Group’s PRC subsidiaries and the consolidated VIEs 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 Group represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Group. Non-controlling interests are presented as a separate component of equity on the Consolidated Statements of Financial Position 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 Group 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 Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The 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 Group’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, short-term investments, advance receipts from related parties, accounts payable, investors’ deposit, amounts due from and due to related parties, approximate their fair values due to the short-term nature of these instruments. |
Leases | (r) Leases Starting from the year ended June 30, 2020, the Group adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Group has operating leases primarily for office space. The determination of whether an arrangement is a lease or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on the Group’s Consolidated Statements of Financial Position. Operating lease ROU assets represent the Group’s right to use an underlying asset for the lease term and operating lease liabilities represent the Group’s obligation to make lease payments arising from the lease. The Group uses its estimated incremental borrowing rate as of the commencement date in determining the present value of lease payments. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. To determine the incremental borrowing rate used to calculate the present value of future lease payments, the Group uses information including the Group’s credit rating, interest rates of similar debt instruments of entities with comparable credit ratings, as applicable. Variable components of the lease payments such as utilities, maintenance costs are expensed as incurred and not included in determining the present value. The lease terms include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. The Group considers these options, which may be elected at the Group’s sole discretion, in determining the lease term on a lease-by-lease basis. Lease expense is recognized on a straight-line basis over the lease term. The Group has an accounting policy election to exempt leases with an initial term of 12 months or less from being recognized on the balance sheet. |
Foreign currency translation | (s) Foreign currency translation The Group’s reporting and functional currency is Renminbi (“RMB”). The Group’s operations are principally conducted through the subsidiaries and the VIEs located in the PRC where the RMB is the functional currency. For those subsidiaries and the 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 Group’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 Operations and Comprehensive Loss. Translations of amounts from RMB into US$ are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB6.6981 on June 30, 2022, representing the certificated exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2022, or at any other rate. |
Segment reporting | (t) Segment reporting The Group uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group 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”) | (u) Earnings per share (“EPS”) Basic EPS is calculated by dividing the net income (loss) 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 | (v) Commitments and contingencies The Group 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 | (w) Recently issued accounting standards 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. This ASU has subsequently been amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020-03. The standard will replace today’s incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019, and effective for all other entities for annual and interim periods beginning after December 15, 2022. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. The Group is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). It requires issuers to make annual disclosures about government assistance, including the nature of the transaction, the related accounting policy, the financial statement line items affected and the amounts applicable to each financial statement line item, as well as any significant terms and conditions, including commitments and contingencies. The amendments in this Update are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. Early application of the amendments is permitted. An entity should apply the amendments in this Update either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. The Group is currently assessing the impact that ASU 2021-10 will have on the disclosures of its future consolidated financial statements. Other accounting standards 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 Group’s consolidated financial statements upon adoption. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Organization And Principal Activities Abstract | |
Schedule of subsidiaries and VIE | Name Date of Place of Percentage of Principal 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 Puyi Dake May 2020 Chengdu 100% Information technology Puyi FO May 2022 Zhuhai 100% Trust consulting 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 |
Schedule of financial statements amounts and balances of the VIE | As of June 30, 2021 2022 2022 RMB RMB US$ Total assets 329,552 353,941 52,842 Total liabilities 169,965 227,967 34,035 |
Schedule of Income statement amount and balances of the VIE | Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Net revenues 179,256 193,013 159,181 23,765 Net income 12,767 (41,727 ) (33,613 ) (5,018 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Estimated useful life Office equipment, furniture, fixtures 3-5 years Motor vehicles 3-5 years Leasehold improvements Shorter of the remaining lease terms and estimated useful lives |
Schedule of disaggregation of revenue | Years ended June 30, 2020 2021 2022 RMB RMB RMB Wealth management 106,444 176,589 171,541 Distribution commissions 99,600 176,573 168,489 -- One-time commissions 69,196 109,308 80,943 -- Recurring management fees 30,404 67,265 87,546 Performance-based distribution fees 6,844 16 3,052 Corporate financing 6 - - Asset management 23,033 13,464 5,890 Management fees 6,393 5,626 3,476 Performance-based fees 16,640 7,838 2,414 Consulting and other services - 1,147 11,310 Insurance consulting services (1) - 1,138 9,394 Other services (2) - 9 1,916 Total 129,483 191,200 188,741 (1) Insurance consulting services were started from January 2021, and were recognized at a point of time. (2) Other services primarily consist of trust consulting services started from July 2021, and were recognized at a point of time. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of reconciliation of cash, cash equivalents, and restricted cash | Years ended June 30, 2021 2022 2022 RMB RMB US$ Cash and cash equivalent 260,593 194,259 29,002 Restricted cash 72,189 118,796 17,736 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows 332,782 313,055 46,738 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Short-Term Investments [Abstract] | |
Schedule of investment balances | As of June 30, 2021 2022 2022 RMB RMB US$ Short-term investments - Private fund product - 5,000 746 Total short-term investments - 5,000 746 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of accounts receivable | As of June 30, 2021 2022 2022 RMB RMB US$ Accounts receivable 62,046 66,399 9,913 Allowance for doubtful accounts 6,892 6,892 1,029 Accounts receivable, net 55,154 59,507 8,884 |
Other Receivables and Current_2
Other Receivables and Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Other Receivables [Abstract] | |
Schedule of Other receivables and current assets | As of June 30, 2021 2022 2022 RMB RMB US$ Advances to staff 972 855 128 Prepayments to service providers 6,190 5,252 784 Rental deposits 6,729 5,523 825 Income tax prepayments - 2,666 398 Other 778 2 - Other receivables and current assets 14,669 14,298 2,135 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | As of June 30, 2021 2022 2022 RMB RMB US$ Furniture, office equipment, fixtures 3,946 5,151 769 Leasehold improvements 11,535 11,405 1,703 Motor vehicles 1,650 1,932 288 17,131 18,488 2,760 Less: Accumulated depreciation (7,113 ) (9,332 ) (1,393 ) Property and equipment, net 10,018 9,156 1,367 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets net | As of June 30, 2021 2022 2022 RMB RMB US$ Software and operating system 6,267 6,614 987 Less: Accumulated amortization (4,668 ) (5,500 ) (821 ) Intangible assets, net 1,599 1,114 166 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of ROU assets and related lease liabilities | As of June 30, 2021 2022 2022 RMB RMB US$ Right-of-use assets 31,329 34,382 5,134 Lease liabilities, current 13,705 11,889 1,775 Lease liabilities, non-current 17,310 23,259 3,472 Total operating lease liabilities 31,015 35,148 5,247 |
Schedule of weighted average lease term and weighted average discount rate | As of June 30, 2021 2022 Weighted average lease term: Operating leases 2.40 years 3.31 years Weighted average discount rate: Operating leases 4.75 % 4.75 % |
Schedule of lease expenses | Years ended June 30, 2021 2022 2022 RMB RMB US$ Operating lease expenses 11,129 14,757 2,203 Short-term lease expenses 2,740 7,346 1,097 Total 13,869 22,103 3,300 |
Schedule of supplemental cash flow information related to leases | Years ended June 30, 2021 2022 2022 RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease 10,879 13,739 2,051 Supplement noncash information New operating lease liabilities arose from obtaining right-of-use assets 20,317 27,245 4,068 Change on lease liabilities arose from modification on lease terms (507 ) (474 ) (71 ) Change on lease liabilities arose from early termination of operating leases (1,287 ) (10,739 ) (1,603 ) |
Schedule of maturities of lease liabilities | As of June 30, 2022 2022 RMB US$ Year ending June 30: 2023 13,352 1,993 2024 10,491 1,566 2025 6,404 956 2026 6,388 954 Thereafter 1,609 240 Total remaining undiscounted lease payments 38,244 5,709 Less: Interest 3,096 462 Total present value of lease liabilities 35,148 5,247 Less: Current operating lease liabilities 11,889 1,775 Non-current operating lease liabilities 23,259 3,472 |
Other Payables and Accrued Ex_2
Other Payables and Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Other Payables and Accrued Expenses [Abstract] | |
Schedule of components of other payables and accrued expenses | As of June 30, 2021 2022 2022 RMB RMB US$ Payroll payable 16,246 13,844 2,067 Accrued expenses 4,781 3,924 586 Value-added tax recoverable (3,696 ) (700 ) (105 ) Employee’s individual income tax 1,268 407 61 Others 525 1,970 294 Other payables and accrued expenses 19,124 19,445 2,903 |
Sundry Income, Net (Tables)
Sundry Income, Net (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Sundry Income, Net [Abstract] | |
Schedule of components of sundry income, net | Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Government grants 5,104 4,945 4,528 676 Others (27 ) (255 ) 509 76 Total sundry income, net 5,077 4,690 5,037 752 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the income tax provision | Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Current 3,382 1,072 1,464 219 Deferred (5,776 ) (10,680 ) (2,389 ) (357 ) Total income tax benefit (2,394 ) (9,608 ) (925 ) (138 ) |
Schedule of components of the deferred income tax assets and liabilities | As of June 30, 2021 2022 2022 RMB RMB US$ Deferred tax assets: Tax loss carry forward 22,149 28,314 4,227 Allowance for doubtful accounts, credit losses and impairment losses 1,723 1,723 257 Subtotal 23,872 30,037 4,484 Less: valuation allowances 2,284 6,059 904 Total 21,588 23,978 3,580 |
Schedule of reconciliation between the statutory tax rate to income before income taxes | Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Income (loss) from operations before income taxes (35,945 ) (55,674 ) (61,592 ) (9,195 ) PRC income tax statutory rate 25 % 25 % 25 % 25 % Income tax expense (benefit) at statutory tax rate (8,986 ) (13,919 ) (15,398 ) (2,299 ) Preferential tax treatments 4,633 403 7,186 1,073 Super deduction of qualified R&D expenditures 447 (360 ) - - Expenses not deductible for tax purposes 391 998 695 103 Uncertain tax provision - 2,800 1,400 209 Tax expenses not deductible for book purposes (727 ) - - - Reversal of previously-recognized DTA due to changes in applicable tax rate - - 768 116 Impact of different tax rates in other jurisdictions (312 ) 354 385 57 Others - (114 ) 264 39 Valuation allowances 2,160 230 3,775 564 Income tax expense (benefit) (2,394 ) (9,608 ) (925 ) (138 ) |
Schedule of other tax liabilities | RMB US$ Balance as of July 1, 2019 9,300 1,355 Provisions for uncertain tax positions during the year ended June 30, 2020 - - Balance as of June 30, 2020 9,300 1,316 Provisions for uncertain tax positions during the year ended June 30, 2021 2,800 434 Balance as of June 30, 2021 12,100 1,874 Provisions for uncertain tax positions during the year ended June 30, 2022 1,400 209 Balance as of June 30, 2022 13,500 2,015 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income (loss) per ordinary share | Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ Numerator: Net loss (33,551 ) (46,066 ) (60,667 ) (9,057 ) Less: Net income (loss) attributable to the non-controlling interests (648 ) 304 - - Net loss attributable to the Group’s shareholders (32,903 ) (46,370 ) (60,667 ) (9,057 ) Denominator: Weighted average number of ordinary shares outstanding 90,472,014 90,472,014 90,472,014 90,472,014 Basic & diluted net loss per ordinary share (0.364 ) (0.513 ) (0.671 ) (0.100 ) |
Condensed Financial Statement_2
Condensed Financial Statements of the Company (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed statements of financial position | As of June 30, 2021 2022 2022 RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 12,770 11,732 1,752 Amounts due from other subsidiaries - 77 11 Total current assets 12,770 11,809 1,763 Investments in subsidiaries 307,741 248,459 37,094 Total assets 320,511 260,268 38,857 LIABILITIES AND EQUITY: LIABILITIES: Current liabilities: Other payables and accrued expenses 210 217 32 Total current liabilities 210 217 32 Total liabilities 210 217 32 Commitments and contingencies EQUITY: Ordinary shares (2,000,000,000 shares at US$0.001 each authorized, and 90,472,014 shares issued and outstanding as of June 30, 2021 and 2022) 600 600 90 Additional paid-in capital 224,694 224,694 33,546 Retained earnings 95,817 35,150 5,248 Accumulated other comprehensive income (810 ) (393 ) (59 ) Total equity 320,301 260,051 38,825 Total liabilities and equity 320,511 260,268 38,857 |
Schedule of condensed statements of operations and comprehensive income (loss) | Years ended June 30, 2020 2021 2022 2022 RMB RMB RMB US$ General and administrative expenses (1,286 ) (1,369 ) (1,610 ) (240 ) Other income, net 188 68 227 34 Equity in loss of subsidiaries (31,805 ) (45,067 ) (59,220 ) (8,841 ) Loss before income taxes (32,903 ) (46,368 ) (60,603 ) (9,047 ) Income tax expense - (2 ) (64 ) (10 ) Net loss (32,903 ) (46,370 ) (60,667 ) (9,057 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 456 (1,277 ) 417 62 Total Comprehensive loss (32,447 ) (47,647 ) (60,250 ) (8,995 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transaction [Abstract] | |
Schedule of related parties with whom the group conducted significant transactions and relationship | Related parties Relationship Fanhua Inc. (“Fanhua”) Shareholder of Puyi since September 2018 who has approximately 4.5% of Puyi and shares a common director with the Group. Fanhua Lianxing Insurance Sales Co., Ltd. (“Fanhua Lianxing”) Subsidiary of Fanhua Inc. Shenzhen Red Lake Shengchuang Investment LLP (“Shengchuang”) Ultimately controlled by Mr. Tang Jianping who was a minority shareholder of Zhonghui which was a subsidiary of Puyi then. As we disposed Zhonghui in December 2020, this entity was not our related party since then. Jinhui Red Lake (Shenzhen) Enterprise Management Co., Ltd. (“Jinhui”) Mr. Tang Jianping is the executive partner of this entity. As we disposed Zhonghui in December 2020, this entity was not our related party since then. Fanhua Yuntong Enterprise Management Advisory (Shenzhen) Co., Ltd. (“Fanhua Yuntong”) Subsidiary of Fanhua Inc. |
Schedule of related party transactions | Years ended June 30, Note 2020 2021 2022 2022 RMB RMB RMB US$ Loan provided to related parties Shengchuang a 718 - - - Jinhui b 119 - - - Subtotal 837 - - - Repayment of loan from related parties Shengchuang a 175 - - - Jinhui b 5 - - - Subtotal 180 - - - Other services Insurance consulting service income accrued from Fanhua Lianxing c - 1,146 9,439 1,409 Insurance consulting service income received from Fanhua Lianxing c - 494 7,831 1,169 Trust consulting service income accrued from Fanhua Lianxing d - - 1,425 213 Trust consulting service income received in advance from Fanhua Lianxing d - - 3,010 449 Selling expense Promotion expense accrued to Fanhua Yuntong e - - 1,243 186 Promotion expense paid to Fanhua Yuntong e - - 975 146 (a) Zhonghui provided interest free loans to Shengchuang from December 2019 to June 2020. As we disposed Zhonghui in December 2020, this entity was not our related party since then. (b) Zhonghui provided interest free loans to Jinhui from February 2020 to June 2020. As we disposed Zhonghui in December 2020, this entity was not our related party since then. (c) Starting from January 2021, the Group cooperated with Fanhua Lianxing and provided insurance consulting service. (d) Starting from January 2022, the Group cooperated with Fanhua Lianxing and provided trust consulting service. (e) Starting from August 2021, the Group cooperated with Fanhua Yuntong and Fanhua Yuntong provided client referral service to us. |
Schedule of amounts due from related parties | As of June 30, Note 2021 2022 2022 RMB RMB US$ Fanhua Lianxing c 721 2,895 432 Total 721 2,895 432 As of June 30, Note 2021 2022 2022 RMB RMB US$ Fanhua Lianxing d - (1,500 ) (224 ) Total - (1,500 ) (224 ) As of June 30, Note 2021 2022 2022 RMB RMB US$ Fanhua Yuntong e - (292 ) (44 ) Total - (292 ) (44 ) |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Net Revenues [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration risks | Years ended June 30, 2020 % of net 2021 % of net 2022 2022 % of net RMB RMB RMB US$ Company A * * 29,264 15.3 % 35,611 5,317 18.9 % Company B 45,921 35.5 % 122,723 64.2 % 47,642 7,113 25.2 % Company C 14,703 11.3 % * * * * * Company D 16,790 13.0 % * * * * * 77,414 59.8 % 151,987 79.5 % 83,253 12,430 44.1 % * represented less than 10% of total net revenues for the year then ended. |
Accounts Receivable [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration risks | As of June 30, 2021 % 2022 2022 % RMB RMB US$ Company A 31,662 57.4 % 40,762 6,086 68.5 % Company B 16,484 29.9 % 6,078 907 10.2 % 48,146 87.3 % 46,840 6,993 78.7 % |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Sep. 06, 2018 | Aug. 06, 2018 | |
Organization and Principal Activities (Details) [Line Items] | |||
Organization and principal activities, description | According to the Exclusive Option Agreement, the purchase price to be paid by the Company to Mr. Yu Haifeng will be amounts permitted by applicable PRC Law at the time when such share transfer occurs. The Exclusive Option Agreement became effective on September 6, 2018 and will remain effective permanently. | ||
Ms. Yang Yuanfen’s [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Equity interest percentage | 0.96% | 0.96% | |
Mr. Yu Haifeng [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Equity interest percentage | 99.04% | ||
WFOE [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Equity interest percentage | 0.96% | ||
Maximum [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Investable assets (in Yuan Renminbi) | ¥ 30 | ||
Minimum [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Investable assets (in Yuan Renminbi) | ¥ 600 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of subsidiaries and VIE | 12 Months Ended |
Jun. 30, 2022 | |
Puyi Group [Member] | Wholly owned subsidiaries [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | July 2018 |
Place of incorporation | BVI |
Percentage of effective ownership | 100% |
Principal Activities | Holding company |
Puyi Holdings (Hong Kong) Limited (“Puyi HK”) [Member] | Wholly owned subsidiaries [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | July 2018 |
Place of incorporation | Hong Kong |
Percentage of effective ownership | 100% |
Principal Activities | Holding company |
Puyi Enterprises Management Consulting Co., Ltd. (“Puyi Consulting” or the Wholly Foreign-Owned Enterprise “WFOE”) [Member] | Wholly owned subsidiaries [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | August 2018 |
Place of incorporation | Chengdu |
Percentage of effective ownership | 100% |
Principal Activities | WFOE |
Puyi Dake [Member] | Wholly owned subsidiaries [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | May 2020 |
Place of incorporation | Chengdu |
Percentage of effective ownership | 100% |
Principal Activities | Information technology |
Puyi FO [Member] | Wholly owned subsidiaries [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | May 2022 |
Place of incorporation | Zhuhai |
Percentage of effective ownership | 100% |
Principal Activities | Trust consulting |
Puyi Bohui [Member] | Variable Interest Entities [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | April 2012 |
Place of incorporation | Chengdu |
Percentage of effective ownership | 100% |
Principal Activities | Information technology |
Puyi Fund [Member] | Variable Interest Entities [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | November 2010 |
Place of incorporation | Chengdu |
Percentage of effective ownership | 100% |
Principal Activities | Fund product distribution |
Puyi Zhongxiang [Member] | Variable Interest Entities [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | April 2014 |
Place of incorporation | Shenzhen |
Percentage of effective ownership | 100% |
Principal Activities | Financial product distribution |
Puyi Asset [Member] | Variable Interest Entities [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | May 2013 |
Place of incorporation | Shenzhen |
Percentage of effective ownership | 100% |
Principal Activities | Asset management |
Chongqing Fengyi [Member] | Variable Interest Entities [Member] | |
Wholly owned subsidiaries | |
Date of incorporation/ acquired | December 2016 |
Place of incorporation | Chongqing |
Percentage of effective ownership | 100% |
Principal Activities | Corporate financing business |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of financial statements amounts and balances of the VIE ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Schedule Of Financial Statements Amounts And Balances Of The Vie Abstract | |||
Total assets | ¥ 353,941 | $ 52,842 | ¥ 329,552 |
Total liabilities | ¥ 227,967 | $ 34,035 | ¥ 169,965 |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of Income statement amount and balances of the VIE ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | |
Schedule Of Income Statement Amount And Balances Of The Vie Abstract | ||||
Net revenues | ¥ 159,181 | $ 23,765 | ¥ 193,013 | ¥ 179,256 |
Net income | ¥ (33,613) | $ (5,018) | ¥ (41,727) | ¥ 12,767 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - CNY (¥) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | |||
Allowances for doubtful accounts | ¥ 6,892,000 | ||
Management fees investment , percentage | 2% | ||
Contract liability | ¥ 421,000 | ||
Uncertain tax positions, description | 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. | ||
Provisions on its uncertain tax positions | ¥ 1,400 | ¥ 2,800 | |
VAT percentage of the gross sales | 6% | ||
VAT percentage | 6% | ||
Foreign currency translation and change in reporting currency, description | 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 = RMB6.6981 on June 30, 2022, representing the certificated exchange rate published by the Federal Reserve Board. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Leasehold improvements | Shorter of the remaining lease terms and estimated useful lives |
Office equipment, furniture, fixtures [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 3 years |
Office equipment, furniture, fixtures [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 5 years |
Motor vehicles [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 3 years |
Motor vehicles [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of disaggregation of revenue - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Schedule Of Disaggregation Of Revenue Abstract | ||||
Wealth management | ¥ 171,541 | ¥ 176,589 | ¥ 106,444 | |
Distribution commissions | 168,489 | 176,573 | 99,600 | |
-- One-time commissions | 80,943 | 109,308 | 69,196 | |
-- Recurring management fees | 87,546 | 67,265 | 30,404 | |
Performance-based distribution fees | 3,052 | 16 | 6,844 | |
Corporate financing | 6 | |||
Asset management | 5,890 | 13,464 | 23,033 | |
Management fees | 3,476 | 5,626 | 6,393 | |
Performance-based fees | 2,414 | 7,838 | 16,640 | |
Consulting and other services | 11,310 | 1,147 | ||
Insurance consulting services | [1] | 9,394 | 1,138 | |
Other services | [2] | 1,916 | 9 | |
Total | ¥ 188,741 | ¥ 191,200 | ¥ 129,483 | |
[1] Insurance consulting services were started from January 2021, and were recognized at a point of time. Other services primarily consist of trust consulting services started from July 2021, and were recognized at a point of time. |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - Schedule of reconciliation of cash, cash equivalents, and restricted cash ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Schedule of reconciliation of cash, cash equivalents, and restricted cash [Abstract] | |||
Cash and cash equivalent | ¥ 194,259 | $ 29,002 | ¥ 260,593 |
Restricted cash | 118,796 | 17,736 | 72,189 |
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows | ¥ 313,055 | $ 46,738 | ¥ 332,782 |
Short-Term Investments (Details
Short-Term Investments (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Short-Term Investments (Details) [Line Items] | ||||
Private equity funds investments | ¥ 653 | ¥ 1,499 | ||
Product C [Member] | ||||
Short-Term Investments (Details) [Line Items] | ||||
Cash consideration | ¥ 5,000 |
Short-Term Investments (Detai_2
Short-Term Investments (Details) - Schedule of investment balances ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Short-term investments | |||
- Private fund product | ¥ 5,000 | $ 746 | |
Total short-term investments | ¥ 5,000 | $ 746 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Receivables [Abstract] | ||
Allowance for doubtful accounts | ¥ 6,892 | ¥ 6,892 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Schedule of accounts receivable [Abstract] | |||
Accounts receivable | ¥ 66,399 | $ 9,913 | ¥ 62,046 |
Allowance for doubtful accounts | 6,892 | 1,029 | 6,892 |
Accounts receivable, net | ¥ 59,507 | $ 8,884 | ¥ 55,154 |
Other Receivables and Current_3
Other Receivables and Current Assets (Details) - Schedule of Other receivables and current assets ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Schedule Of Other Receivables [Abstract] | |||
Advances to staff | ¥ 855 | $ 128 | ¥ 972 |
Prepayments to service providers | 5,252 | 784 | 6,190 |
Rental deposits | 5,523 | 825 | 6,729 |
Income tax prepayments | 2,666 | 398 | |
Other | 2 | 778 | |
Other receivables and current assets | ¥ 14,298 | $ 2,135 | ¥ 14,669 |
Short-Term Loans Receivable (De
Short-Term Loans Receivable (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Short-Term Loans Receivable (Details) [Line Items] | ||||
Provided loans | ¥ 130,000 | ¥ 240,000 | ||
Repayment of loans | 190,000 | |||
Short term loan | 50,000 | |||
Repaid accrued interest | ¥ 2,893 | |||
Interest income | ¥ 790 | ¥ 2,730 | ¥ 5,386 | |
Minimum [Member] | ||||
Short-Term Loans Receivable (Details) [Line Items] | ||||
Annual interest rate | 5% | |||
Maximum [Member] | ||||
Short-Term Loans Receivable (Details) [Line Items] | ||||
Annual interest rate | 12% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | ¥ 5,603 | $ 837 | ¥ 3,165 | ¥ 1,998 |
Leasehold improvements | ¥ 3,384 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | ¥ 18,488 | $ 2,760 | ¥ 17,131 |
Less: Accumulated depreciation | (9,332) | (1,393) | (7,113) |
Property and equipment, net | 9,156 | 1,367 | 10,018 |
Furniture, office equipment, fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,151 | 769 | 3,946 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 11,405 | 1,703 | 11,535 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | ¥ 1,932 | $ 288 | ¥ 1,650 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | ¥ 832 | ¥ 604 | ¥ 370 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets net ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Schedule of intangible assets net [Abstract] | |||
Software and operating system | ¥ 6,614 | $ 987 | ¥ 6,267 |
Less: Accumulated amortization | (5,500) | (821) | (4,668) |
Intangible assets, net | ¥ 1,114 | $ 166 | ¥ 1,599 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of ROU assets and related lease liabilities ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Schedule Of Rou Assets And Related Lease Liabilities [Abstract] | |||
Right-of-use assets | ¥ 34,382 | $ 5,134 | ¥ 31,329 |
Lease liabilities, current | 11,889 | 1,775 | 13,705 |
Lease liabilities, non-current | 23,259 | 3,472 | 17,310 |
Total operating lease liabilities | ¥ 35,148 | $ 5,247 | ¥ 31,015 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of weighted average lease term and weighted average discount rate | Jun. 30, 2022 | Jun. 30, 2021 |
Weighted average lease term: | ||
Operating leases | 3 years 3 months 21 days | 2 years 4 months 24 days |
Weighted average discount rate: | ||
Operating leases | 4.75% | 4.75% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of lease expenses ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | |
Schedule Of Lease Expenses [Abstract] | |||
Operating lease expenses | ¥ 14,757 | $ 2,203 | ¥ 11,129 |
Short-term lease expenses | 7,346 | 1,097 | 2,740 |
Total | ¥ 22,103 | $ 3,300 | ¥ 13,869 |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of supplemental cash flow information related to leases ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating lease | ¥ 13,739 | $ 2,051 | ¥ 10,879 |
Supplement noncash information | |||
New operating lease liabilities arose from obtaining right-of-use assets | 27,245 | 4,068 | 20,317 |
Change on lease liabilities arose from modification on lease terms | (474) | (71) | (507) |
Change on lease liabilities arose from early termination of operating leases | ¥ (10,739) | $ (1,603) | ¥ (1,287) |
Leases (Details) - Schedule o_5
Leases (Details) - Schedule of maturities of lease liabilities - Jun. 30, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Schedule Of Maturities Of Lease Liabilities [Abstract] | ||
2023 | ¥ 13,352 | $ 1,993 |
2024 | 10,491 | 1,566 |
2025 | 6,404 | 956 |
2026 | 6,388 | 954 |
Thereafter | 1,609 | 240 |
Total remaining undiscounted lease payments | 38,244 | 5,709 |
Less: Interest | 3,096 | 462 |
Total present value of lease liabilities | 35,148 | 5,247 |
Less: Current operating lease liabilities | 11,889 | 1,775 |
Non-current operating lease liabilities | ¥ 23,259 | $ 3,472 |
Investors' Deposit (Details)
Investors' Deposit (Details) ¥ in Thousands | Jun. 30, 2022 CNY (¥) |
Statistical Disclosure for Banks [Abstract] | |
Uninvested Cash Balance | ¥ 118,796 |
Other Payables and Accrued Ex_3
Other Payables and Accrued Expenses (Details) - Schedule of components of other payables and accrued expenses ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Schedule Of Components Of Other Payables And Accrued Expenses Abstract | |||
Payroll payable | ¥ 13,844 | $ 2,067 | ¥ 16,246 |
Accrued expenses | 3,924 | 586 | 4,781 |
Value-added tax recoverable | (700) | (105) | (3,696) |
Employee’s individual income tax | 407 | 61 | 1,268 |
Others | 1,970 | 294 | 525 |
Other payables and accrued expenses | ¥ 19,445 | $ 2,903 | ¥ 19,124 |
Sundry Income, Net (Details) -
Sundry Income, Net (Details) - Schedule of components of sundry income, net ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) |
Schedule of components of sundry income, net [Abstract] | ||||
Government grants | ¥ 4,528 | $ 676 | ¥ 4,945 | ¥ 5,104 |
Others | 509 | 76 | (255) | (27) |
Total sundry income, net | ¥ 5,037 | $ 752 | ¥ 4,690 | ¥ 5,077 |
Income Taxes (Details)
Income Taxes (Details) - CNY (¥) | 1 Months Ended | 12 Months Ended | ||
Mar. 21, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes (Details) [Line Items] | ||||
Income tax PRC, description | 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, from January 1, 2017 to December 31, 2019 Puyi Bohui has made a 12.5% tax provision for its profits; beginning from January 1, 2020, Puyi Bohui is qualified for west development taxation preference and is subject to an income tax rate for 15%. 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 are subject to an income tax rate for 15%. Dake is regarded as an accredited software company since June 2021, 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. As Dake had a loss in the fiscal year 2022, it is exempted for income tax. Puyi FO and other PRC subsidiaries are subject to a standard 25% EIT. | |||
Total tax loss carry-forwards | ¥ 184,258 | ¥ 121,530 | ||
Percentage of income tax rate | 100% | |||
Unrecognized tax benefits | ¥ 13,500 | ¥ 12,100 | ¥ 9,300 | |
Minimum [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Percentage of income tax rate | ||||
Maximum [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Percentage of income tax rate | 25% | |||
June 30, 2023 [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Total tax loss carry-forwards | ¥ 3,880 | |||
June 30, 2024 [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Total tax loss carry-forwards | 4,429 | |||
June 30, 2025 [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Total tax loss carry-forwards | 37,760 | |||
June 30, 2026 [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Total tax loss carry-forwards | 71,809 | |||
June 30, 2027 [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Total tax loss carry-forwards | ¥ 66,380 | |||
Hong Kong [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Income tax PRC, description | 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%. | |||
EIT Law [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
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. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of components of the income tax provision ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | |
Schedule Of Components Of The Income Tax Provision Abstract | ||||
Current | ¥ 1,464 | $ 219 | ¥ 1,072 | ¥ 3,382 |
Deferred | (2,389) | (357) | (10,680) | (5,776) |
Total income tax benefit | ¥ (925) | $ (138) | ¥ (9,608) | ¥ (2,394) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of components of the deferred income tax assets and liabilities ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Deferred tax assets: | |||
Tax loss carry forward | ¥ 28,314 | $ 4,227 | ¥ 22,149 |
Allowance for doubtful accounts, credit losses and impairment losses | 1,723 | 257 | 1,723 |
Subtotal | 30,037 | 4,484 | 23,872 |
Less: valuation allowances | 6,059 | 904 | 2,284 |
Total | ¥ 23,978 | $ 3,580 | ¥ 21,588 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of reconciliation between the statutory tax rate to income before income taxes ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | |
Schedule Of Reconciliation Between The Statutory Tax Rate To Income Before Income Taxes Abstract | ||||
Income (loss) from operations before income taxes | ¥ (61,592) | $ (9,195) | ¥ (55,674) | ¥ (35,945) |
PRC income tax statutory rate | 25% | 25% | 25% | 25% |
Income tax expense (benefit) at statutory tax rate | ¥ (15,398) | $ (2,299) | ¥ (13,919) | ¥ (8,986) |
Preferential tax treatments | 7,186 | 1,073 | 403 | 4,633 |
Super deduction of qualified R&D expenditures | (360) | 447 | ||
Expenses not deductible for tax purposes | 695 | 103 | 998 | 391 |
Uncertain tax provision | 1,400 | 209 | 2,800 | |
Tax expenses not deductible for book purposes | (727) | |||
Reversal of previously-recognized DTA due to changes in applicable tax rate | 768 | 116 | ||
Impact of different tax rates in other jurisdictions | 385 | 57 | 354 | (312) |
Others | 264 | 39 | (114) | |
Valuation allowances | 3,775 | 564 | 230 | 2,160 |
Income tax expense (benefit) | ¥ (925) | $ (138) | ¥ (9,608) | ¥ (2,394) |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of other tax liabilities ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 CNY (¥) | Jun. 30, 2020 USD ($) | |
Schedule Of Other Tax Liabilities Abstract | ||||||
Balance beginning | ¥ 9,300 | $ 1,355 | ||||
Provisions for uncertain tax positions in fiscal year | ¥ 1,400 | $ 209 | ¥ 2,800 | $ 434 | ||
Balance ending | ¥ 13,500 | $ 2,015 | ¥ 12,100 | $ 1,874 | ¥ 9,300 | $ 1,316 |
Loss Per Share (Details) - Sche
Loss Per Share (Details) - Schedule of basic and diluted net income (loss) per ordinary share ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 CNY (¥) ¥ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 CNY (¥) ¥ / shares shares | Jun. 30, 2020 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net loss | ¥ (60,667) | $ (9,057) | ¥ (46,066) | ¥ (33,551) |
Less: Net income (loss) attributable to the non-controlling interests | ¥ | 304 | (648) | ||
Net loss attributable to the Group’s shareholders | ¥ (60,667) | $ (9,057) | ¥ (46,370) | ¥ (32,903) |
Denominator: | ||||
Weighted average number of ordinary shares outstanding (in Shares) | shares | 90,472,014 | 90,472,014 | 90,472,014 | 90,472,014 |
Basic & diluted net loss per ordinary share (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.671) | $ (0.1) | ¥ (0.513) | ¥ (0.364) |
Loss Per Share (Details) - Sc_2
Loss Per Share (Details) - Schedule of basic and diluted net income (loss) per ordinary share (Parentheticals) | 12 Months Ended | |||
Jun. 30, 2022 ¥ / shares | Jun. 30, 2022 $ / shares | Jun. 30, 2021 ¥ / shares | Jun. 30, 2020 ¥ / shares | |
Schedule of basic and diluted net income loss per ordinary share [Abstract] | ||||
Basic & diluted net loss per ordinary share | (per share) | ¥ (0.671) | $ (0.100) | ¥ (0.513) | ¥ (0.364) |
Condensed Financial Statement_3
Condensed Financial Statements of the Company (Details) - Schedule of condensed statements of financial position - Parent [Member] ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 11,732 | $ 1,752 | ¥ 12,770 |
Amounts due from other subsidiaries | 77 | 11 | |
Total current assets | 11,809 | 1,763 | 12,770 |
Investments in subsidiaries | 248,459 | 37,094 | 307,741 |
Total assets | 260,268 | 38,857 | 320,511 |
Current liabilities: | |||
Other payables and accrued expenses | 217 | 32 | 210 |
Total current liabilities | 217 | 32 | 210 |
Total liabilities | 217 | 32 | 210 |
Commitments and contingencies | |||
EQUITY: | |||
Ordinary shares (2,000,000,000 shares at US$0.001 each authorized, and 90,472,014 shares issued and outstanding as of June 30, 2021 and 2022) | 600 | 90 | 600 |
Additional paid-in capital | 224,694 | 33,546 | 224,694 |
Retained earnings | 35,150 | 5,248 | 95,817 |
Accumulated other comprehensive income | (393) | (59) | (810) |
Total equity | 260,051 | 38,825 | 320,301 |
Total liabilities and equity | ¥ 260,268 | $ 38,857 | ¥ 320,511 |
Condensed Financial Statement_4
Condensed Financial Statements of the Company (Details) - Schedule of condensed statements of financial position (Parentheticals) - Parent [Member] - $ / shares | Jun. 30, 2022 | Jun. 30, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, authorized shares | 2,000,000,000 | 2,000,000,000 |
Ordinary shares, shares issued | 90,472,014 | 90,472,014 |
Ordinary shares, shares outstanding | 90,472,014 | 90,472,014 |
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Condensed Financial Statement_5
Condensed Financial Statements of the Company (Details) - Schedule of condensed statements of operations and comprehensive income (loss) - Parent [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | |
Condensed Statement of Income Captions [Line Items] | ||||
General and administrative expenses | ¥ (1,610) | $ (240) | ¥ (1,369) | ¥ (1,286) |
Other income, net | 227 | 34 | 68 | 188 |
Equity in loss of subsidiaries | (59,220) | (8,841) | (45,067) | (31,805) |
Loss before income taxes | (60,603) | (9,047) | (46,368) | (32,903) |
Income tax expense | (64) | (10) | (2) | |
Net loss | (60,667) | (9,057) | (46,370) | (32,903) |
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments | 417 | 62 | (1,277) | 456 |
Total Comprehensive loss | ¥ (60,250) | $ (8,995) | ¥ (47,647) | ¥ (32,447) |
Related Party Transactions (Det
Related Party Transactions (Details) - Schedule of related parties with whom the group conducted significant transactions and relationship | 12 Months Ended |
Jun. 30, 2022 | |
Fanhua Inc. [Member] | |
Related Party Transactions (Details) - Schedule of related parties with whom the group conducted significant transactions and relationship [Line Items] | |
Relationship | Shareholder of Puyi since September 2018 who has approximately 4.5% of Puyi and shares a common director with the Group. |
Fanhua Lianxing Insurance Sales Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of related parties with whom the group conducted significant transactions and relationship [Line Items] | |
Relationship | Subsidiary of Fanhua Inc. |
Shenzhen Red Lake Shengchuang Investment LLP [Member] | |
Related Party Transactions (Details) - Schedule of related parties with whom the group conducted significant transactions and relationship [Line Items] | |
Relationship | Ultimately controlled by Mr. Tang Jianping who was a minority shareholder of Zhonghui which was a subsidiary of Puyi then. As we disposed Zhonghui in December 2020, this entity was not our related party since then. |
Jinhui Red Lake (Shenzhen) Enterprise Management Co., Ltd. [Member] | |
Related Party Transactions (Details) - Schedule of related parties with whom the group conducted significant transactions and relationship [Line Items] | |
Relationship | Mr. Tang Jianping is the executive partner of this entity. As we disposed Zhonghui in December 2020, this entity was not our related party since then. |
Fanhua Yuntong Enterprise Management Advisory (Shenzhen) Co., Ltd [Member] | |
Related Party Transactions (Details) - Schedule of related parties with whom the group conducted significant transactions and relationship [Line Items] | |
Relationship | Subsidiary of Fanhua Inc. |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of related party transactions ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | ||
Loan provided to related parties | |||||
Loan provided to related parties | ¥ 837 | ||||
Repayment of loan from related parties | |||||
Repayment of loan from related parties | 180 | ||||
Shengchuang [Member] | |||||
Loan provided to related parties | |||||
Loan provided to related parties | [1] | 718 | |||
Repayment of loan from related parties | |||||
Repayment of loan from related parties | [1] | 175 | |||
Jinhui [Member] | |||||
Loan provided to related parties | |||||
Loan provided to related parties | [2] | 119 | |||
Repayment of loan from related parties | |||||
Repayment of loan from related parties | [2] | 5 | |||
Insurance consulting service income accrued from Fanhua Lianxing [Member] | |||||
Repayment of loan from related parties | |||||
Other services | [3] | 9,439 | 1,409 | 1,146 | |
Insurance consulting service income received from Fanhua Lianxing [Member] | |||||
Repayment of loan from related parties | |||||
Other services | [3] | 7,831 | 1,169 | 494 | |
Trust consulting service income accrued from Fanhua Lianxing [Member] | |||||
Repayment of loan from related parties | |||||
Other services | [4] | 1,425 | 213 | ||
Trust consulting service income received in advance from Fanhua Lianxing [Member] | |||||
Repayment of loan from related parties | |||||
Other services | [4] | 3,010 | 449 | ||
Promotion expense accrued to Fanhua Yuntong [Member] | |||||
Selling expense | |||||
Selling expense | [5] | 1,243 | 186 | ||
Promotion expense paid to Fanhua Yuntong [Member] | |||||
Selling expense | |||||
Selling expense | [5] | ¥ 975 | $ 146 | ||
[1] Zhonghui provided interest free loans to Shengchuang from December 2019 to June 2020. As we disposed Zhonghui in December 2020, this entity was not our related party since then. Zhonghui provided interest free loans to Jinhui from February 2020 to June 2020. As we disposed Zhonghui in December 2020, this entity was not our related party since then. Starting from January 2021, the Group cooperated with Fanhua Lianxing and provided insurance consulting service. |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of amounts due from related parties ¥ in Thousands, $ in Thousands | Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | |
Business Acquisition [Line Items] | ||||
Total | ¥ 2,895 | $ 432 | ¥ 721 | |
Total | (1,500) | (224) | ||
Total | (292) | (44) | ||
Fanhua Yuntong [Member] | ||||
Business Acquisition [Line Items] | ||||
Total | [1] | 2,895 | 432 | 721 |
Total | [2] | (1,500) | (224) | |
Total | [3] | ¥ (292) | $ (44) | |
[1] Starting from January 2021, the Group cooperated with Fanhua Lianxing and provided insurance consulting service. |
Non-Controlling Interest (Detai
Non-Controlling Interest (Details) - Zhonghui [Member] ¥ in Thousands | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | Jun. 30, 2022 CNY (¥) | Jul. 03, 2018 | |
Non-Controlling Interest (Details) [Line Items] | |||||
Minority interest | ¥ 2,525 | ||||
Non-controlling interest related to consolidated statements of operations | ¥ 304 | ¥ 648 | |||
Non-Controlling Interest [Member] | |||||
Non-Controlling Interest (Details) [Line Items] | |||||
Equity interest percentage | 49% | 49% | 49% | 51% |
Statutory Reserve (Details)
Statutory Reserve (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statutory Reserve Abstract | ||
Reserve of net profits after income tax, percentage | 10% | |
Percentage of statutory reserve registered capital | 50% | |
Balance of statutory reserve | ¥ 23,314 | ¥ 23,103 |
Concentrations (Details)
Concentrations (Details) - Customer Concentration Risk [Member] | Jun. 30, 2022 |
Net Revenues [Member] | |
Concentrations (Details) [Line Items] | |
Concentration risk, percentage | 10% |
Net Revenues 1 [Member] | |
Concentrations (Details) [Line Items] | |
Concentration risk, percentage | 10% |
Accounts Receivable [Member] | |
Concentrations (Details) [Line Items] | |
Concentration risk, percentage | 10% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of concentration risks ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | Jun. 30, 2020 CNY (¥) | |||||
Concentration Risk [Line Items] | ||||||||
Total net revenues | ¥ 83,253 | $ 12,430 | ¥ 151,987 | ¥ 77,414 | ||||
Net revenues, percentage | 44.10% | 44.10% | 79.50% | 59.80% | ||||
Company A [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Total net revenues | ¥ 35,611 | $ 5,317 | ¥ 29,264 | [1] | ||||
Net revenues, percentage | 18.90% | 18.90% | 15.30% | [1] | ||||
Company B [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Total net revenues | ¥ 47,642 | $ 7,113 | ¥ 122,723 | ¥ 45,921 | ||||
Net revenues, percentage | 25.20% | 25.20% | 64.20% | 35.50% | ||||
Company C [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Total net revenues | [1] | [1] | [1] | ¥ 14,703 | ||||
Net revenues, percentage | [1] | [1] | [1] | 11.30% | ||||
Company D [Member] | ||||||||
Concentration Risk [Line Items] | ||||||||
Total net revenues | [1] | [1] | [1] | ¥ 16,790 | ||||
Net revenues, percentage | [1] | [1] | [1] | 13% | ||||
[1] represented less than 10% of total net revenues for the year then ended. |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of concentration risks ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 CNY (¥) | |
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 46,840 | $ 6,993 | ¥ 48,146 |
Accounts receivable, percentage | 78.70% | 78.70% | 87.30% |
Company A [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 40,762 | $ 6,086 | ¥ 31,662 |
Accounts receivable, percentage | 68.50% | 68.50% | 57.40% |
Company B [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | ¥ 6,078 | $ 907 | ¥ 16,484 |
Accounts receivable, percentage | 10.20% | 10.20% | 29.90% |