Document And Entity Information
Document And Entity Information | 6 Months Ended |
Dec. 31, 2022 | |
Document Information Line Items | |
Entity Registrant Name | Puyi Inc. |
Document Type | 6-K |
Current Fiscal Year End Date | --06-30 |
Amendment Flag | false |
Entity Central Index Key | 0001750264 |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 001-38813 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Financial Position ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 75,233 | $ 10,908 | ¥ 194,259 |
Restricted cash | 16,434 | 2,383 | 118,796 |
Accounts receivable, net | 53,845 | 7,807 | 59,507 |
Short-term investments | 5,000 | ||
Other receivables and current assets | 8,926 | 1,294 | 14,298 |
Short-term loans receivable | 103,557 | 15,014 | |
Amount due from related parties | 7,761 | 1,125 | 2,895 |
Total current assets | 265,756 | 38,531 | 394,755 |
Property and equipment, net | 5,931 | 860 | 9,156 |
Intangible assets, net | 1,036 | 150 | 1,114 |
Long-term prepayments | 620 | 90 | 551 |
Deferred tax assets | 26,403 | 3,828 | 23,978 |
Right-of-use assets | 24,556 | 3,560 | 34,382 |
Total assets | 324,302 | 47,019 | 463,936 |
Current liabilities: | |||
Accounts payable (including the VIEs amount without recourse to the Company of RMB11,125 and RMB10,795 as of June 30, 2022 and December 31, 2022, respectively) | 14,597 | 2,116 | 11,668 |
Investors’ deposit (including the VIEs amount without recourse to the Company of RMB118,796 and RMB16,434 as of June 30, 2022 and December 31, 2022, respectively) | 16,434 | 2,383 | 118,796 |
Other payables and accrued expenses (including the VIEs amount without recourse to the Company of RMB62,479 and RMB65,219 as of June 30, 2022 and December 31, 2022, respectively) | 22,529 | 3,266 | 19,445 |
Lease liabilities, current (including the VIEs amount without recourse to the Company of RMB4,855 and RMB4,603as of June 30, 2022 and December 31, 2022, respectively) | 8,857 | 1,284 | 11,889 |
Income taxes payable (including the VIEs amount without recourse to the Company of RMB3,536 and RMB1,614 as of June 30, 2022 and December 31, 2022, respectively) | 1,614 | 235 | 3,536 |
Amount due to related parties (including the VIEs amount without recourse to the Company of RMB292 and RMB62 as of June 30, 2022 and December 31, 2022, respectively) | 236 | 34 | 292 |
Advance receipts from related parties (including the VIEs amount without recourse to the Company of nil as of June 30, 2022 and December 31, 2022) | 1,500 | ||
Total current liabilities | 64,267 | 9,318 | 167,126 |
Other tax liabilities, non-current (including the VIEs amount without recourse to the Company of RMB11,730 and RMB11,730 as of June 30, 2022 and December 31, 2022, respectively) | 13,500 | 1,957 | 13,500 |
Lease liabilities, non-current (including the VIEs amount without recourse to the Company of RMB15,154 and RMB12,631 as of June 30, 2022 and December 31, 2022, respectively) | 17,587 | 2,550 | 23,259 |
Total liabilities | 95,354 | 13,825 | 203,885 |
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, 2022 and December 31, 2022) | 600 | 87 | 600 |
Additional paid-in capital | 224,694 | 32,578 | 224,694 |
Statutory reserves | 23,314 | 3,380 | 23,314 |
Retained earnings | (19,618) | (2,845) | 11,836 |
Accumulated other comprehensive loss | (42) | (6) | (393) |
Total equity | 228,948 | 33,194 | 260,051 |
Total liabilities and equity | ¥ 324,302 | $ 47,019 | ¥ 463,936 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Financial Position (Parentheticals) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts payable VIE amount | ¥ 10,795 | ¥ 11,125 |
Investors’ deposit VIE amount | 16,434 | 118,796 |
Other tax liabilities VIE amount | 65,219 | 62,479 |
Lease liabilities, current VIE amount | 4,603 | 4,855 |
Income taxes payable VIE amount | 1,614 | 3,536 |
Amount due to related parties VIE amount | 62 | 292 |
Advance receipts VIE amount | ||
Other tax liabilities, non-current VIE amount | 11,730 | 11,730 |
Lease liabilities, non-current VIE amount | ¥ 12,631 | ¥ 15,154 |
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 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Net revenues: | |||
Wealth management | ¥ 53,546 | $ 7,763 | ¥ 94,232 |
Asset management | 1,161 | 168 | 3,704 |
Insurance consulting | 6,999 | 1,015 | 3,290 |
Others | 6,723 | 975 | 260 |
Total net revenues | 68,429 | 9,921 | 101,486 |
Operating costs and expenses: | |||
Cost of sales | (14,601) | (2,117) | (22,064) |
Selling expenses | (42,135) | (6,109) | (77,085) |
General and administrative expenses | (49,952) | (7,242) | (50,764) |
Total operating costs and expenses | (106,688) | (15,468) | (149,913) |
Loss from operations | (38,259) | (5,547) | (48,427) |
Other income, net: | |||
Interest income | 4,579 | 664 | 4,088 |
Investment loss | (176) | (26) | |
Sundry income | 723 | 105 | 1,674 |
Loss before income taxes | (33,133) | (4,804) | (42,665) |
Income tax benefit | 1,679 | 243 | 3,421 |
Net loss | (31,454) | (4,561) | (39,244) |
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments | 351 | 51 | (160) |
Total comprehensive loss | ¥ (31,103) | $ (4,510) | ¥ (39,404) |
Net loss per share: | |||
Basic and diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.348) | $ (0.05) | ¥ (0.434) |
Net loss per ADS: | |||
Basic and diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.522) | $ (0.076) | ¥ (0.651) |
Weighted average number of shares used in computation: | |||
Basic and diluted (in Shares) | 90,472,014 | 90,472,014 | 90,472,014 |
Net loss | ¥ (31,454) | $ (4,561) | ¥ (39,244) |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) | 6 Months Ended | ||
Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 ¥ / shares shares | |
Income Statement [Abstract] | |||
Diluted net loss per share | (per share) | ¥ (0.348) | $ (0.050) | ¥ (0.434) |
Diluted net loss per ADS | (per share) | ¥ (0.522) | $ (0.076) | ¥ (0.651) |
Weighted average number of shares used in computation of diluted (in Shares) | 90,472,014 | 90,472,014 | 90,472,014 |
Unaudited Consolidated Statemen
Unaudited 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, 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 loss | (39,244) | (39,244) | ||||||||||||
Provision for statutory reserves | 305 | (305) | ||||||||||||
Other comprehensive income: foreign currency translation adjustments | (160) | (160) | ||||||||||||
Balance at Dec. 31, 2021 | ¥ 600 | 224,694 | 23,408 | 33,165 | (970) | 280,897 | ||||||||
Balance (in Shares) at Dec. 31, 2021 | shares | 90,472,014 | 90,472,014 | ||||||||||||
Balance at Jun. 30, 2022 | ¥ 600 | 224,694 | 23,314 | 11,836 | (393) | 260,051 | ||||||||
Balance (in Shares) at Jun. 30, 2022 | shares | 90,472,014 | 90,472,014 | ||||||||||||
Net loss | (31,454) | (31,454) | $ (4,560) | |||||||||||
Other comprehensive income: foreign currency translation adjustments | 351 | 351 | ||||||||||||
Balance at Dec. 31, 2022 | ¥ 600 | ¥ 224,694 | ¥ 23,314 | ¥ (19,618) | ¥ (42) | ¥ 228,948 | ||||||||
Balance (in Shares) at Dec. 31, 2022 | shares | 90,472,014 | 90,472,014 | ||||||||||||
Balance (in Shares) at Dec. 31, 2022 | shares | 90,472,014 | 90,472,014 | ||||||||||||
Balance (in Dollars) | $ | $ 87 | $ 32,578 | $ 3,380 | $ (2,845) | $ (6) | $ 33,194 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | |||
Net loss | ¥ (31,454) | $ (4,560) | ¥ (39,244) |
Adjustments to reconcile net loss to net cash generated from operating activities: | |||
Depreciation | 2,058 | 298 | 3,273 |
Amortization of intangible assets | 383 | 56 | 437 |
Provision on uncertain tax liability | 500 | ||
Investment loss | 176 | 26 | |
Interest income | (3,557) | (516) | 666 |
Allowance for deferred tax assets | 2,292 | 332 | 1,252 |
Amortization of right-of-use assets | 5,244 | 760 | 7,608 |
Loss on disposal of property, plant and equipment | 1,872 | 271 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 5,661 | 821 | (1,117) |
Other receivables and current assets | 5,372 | 779 | (496) |
Accounts payable | 2,928 | 425 | (151) |
Investor’s deposit | (102,361) | (14,841) | 26,587 |
Other payables and accrued expenses | 3,083 | 447 | 4,737 |
Advance receipts | (1,500) | (217) | |
Deferred tax assets | (4,717) | (684) | (5,237) |
Income taxes payable | (1,921) | (279) | (9) |
Amount due from related parties | (4,865) | (705) | (1,191) |
Amounts due to related parties | (56) | (8) | 358 |
Lease liabilities | (4,122) | (598) | (7,274) |
Net cash used in operating activities | (125,484) | (18,193) | (9,301) |
Cash flows from investing activities: | |||
Proceeds from disposal of short-term investments and commercial notes | 4,823 | 699 | |
Purchase of short-term investments | (5,000) | ||
Purchase of property and equipment | (705) | (102) | (3,058) |
Change in long-term prepayment for intangible assets | (69) | (10) | 42 |
Purchase of intangible assets | (304) | (44) | (343) |
Distribution of short-term loans receivable | (100,000) | (14,499) | (30,000) |
Collection of short-term loans receivable | 30,000 | ||
Net cash used in investing activities | (96,255) | (13,956) | (8,359) |
Cash flows from financing activities: | |||
Net cash provided by financing activities | |||
Net decrease in cash and cash equivalents, and restricted cash | (221,739) | (32,149) | (17,660) |
Cash and cash equivalents, and restricted cash at beginning of year | 313,055 | 45,389 | 332,782 |
Effect of exchange rate changes on cash and cash equivalents | 351 | 51 | (160) |
Cash and cash equivalents, and restricted cash at end of year | 91,667 | 13,291 | 314,962 |
Supplementary disclosure of cash flow information: | |||
Cash paid for income taxes | 9 | ||
Supplementary disclosure related to operating leases: | |||
New operating lease liabilities arose from obtaining right-of-use assets | 2,975 | 431 | 25,362 |
Change on lease liabilities arose from modification on lease terms | (62) | (9) | |
Change on lease liabilities arose from early termination of operating leases | ¥ (8,248) | $ (1,196) | ¥ (9,848) |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended |
Dec. 31, 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 the Cayman Islands, and listed on the Nasdaq on March 29, 2019. The Company, its subsidiaries and the consolidated variable interest entities (the “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 RMB30 and RMB600 in investable assets, respectively. The Company’s subsidiaries and the VIEs as of December 31, 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 A substantial portion of assets and liabilities presented on the Group’s Condensed Consolidated Statements of Financial Position and sales, expense, net income presented on Condensed Consolidated Statement of Operations and Comprehensive Loss as well as the cash flow from operating, investing and financing activities presented on the Condensed Consolidated Statements of Cash Flows are from the financial position, operation and cash flow of Puyi Bohui and its subsidiaries. The following tables present the selected condensed consolidating schedules depicting the financial position, results of operations and cash flows for the parent, the VIEs, the WFOEs and an aggregation of other entities, eliminating intercompany amounts and consolidated totals as of June 30, 2022 and December 31, 2022 and for the six months ended December 31, 2021 and 2022. In these tables, “Parent” refers to Puyi Inc. “VIEs” refers to Puyi Bohui and its subsidiaries. “WFOEs” refers to Puyi Consulting, Puyi Dake and Puyi FO. “Other subsidiaries” refers to Puyi Group and Puyi HK. Selected Condensed Consolidating Schedule of Financial Position June 30, 2022 Parent VIEs WFOEs Other Eliminating Consolidated Cash and cash equivalents 11,732 123,276 58,647 604 - 194,259 Restricted cash - 118,796 - - - 118,796 Inter-group balance due from VIEs and subsidiaries 77 20,000 46,029 - (66,106 ) - Investments in subsidiaries 248,459 - - - (248,459 ) - Other assets - 91,869 59,012 - - 150,881 Total assets 260,268 353,941 163,688 604 (314,565 ) 463,936 Inter-group balance due to VIEs and subsidiaries - 46,008 20,000 21 (66,029 ) - Inter-group balance due to parent - - - 77 (77 ) - Other liabilities 217 181,959 21,709 - - 203,885 Total liabilities 217 227,967 41,709 98 (66,106 ) 203,885 Total equity 260,051 125,974 121,979 506 (248,459 ) 260,051 December 31, 2022 Parent VIEs WFOEs Other Eliminating Consolidated Cash and cash equivalents 11,172 42,943 20,473 645 - 75,233 Restricted cash - 16,434 - - - 16,434 Inter-group balance due from VIEs and subsidiaries 80 37,950 47,121 - (85,151 ) - Investments in subsidiaries 217,696 - - - (217,696 ) - Other assets - 122,218 109,957 460 - 232,635 Total assets 228,948 219,545 177,551 1,105 (302,847 ) 324,302 Inter-group balance due to VIEs and subsidiaries - 47,100 37,950 21 (85,071 ) - Inter-group balance due to parent - - - 80 (80 ) - Other liabilities - 75,988 19,366 - - 95,354 Total liabilities - 123,088 57,316 101 (85,151 ) 95,354 Total equity 228,948 96,457 120,235 1,004 (217,696 ) 228,948 Selected Condensed Consolidating Schedule of Results of Operations Six months ended December 31, 2021 Parent VIEs WFOEs Other Eliminating Consolidated Revenues - 89,381 23,670 - (11,565 ) 101,486 Cost of revenues - (31,312 ) (2,317 ) - 11,565 (22,064 ) Operating expenses (398 ) (86,701 ) (41,053 ) (185 ) 488 (127,849 ) Loss from operations (398 ) (28,632 ) (19,700 ) (185 ) 488 (48,427 ) Other income, net 18 2,390 3,838 - (484 ) 5,762 Share of loss from subsidiaries (38,805 ) - - - 38,805 - Loss before income taxes (39,185 ) (26,242 ) (15,862 ) (185 ) 38,809 (42,665 ) Income tax (expense) benefit (64 ) 3,735 (250 ) - - 3,421 Net loss (39,249 ) (22,507 ) (16,112 ) (185 ) 38,809 (39,244 ) Six months ended December 31, 2022 Parent VIEs WFOEs Other Eliminating Consolidated Revenues - 46,576 33,758 502 (12,407 ) 68,429 Cost of revenues - (19,737 ) (6,201 ) - 11,346 (14,601 ) Operating expenses (935 ) (62,139 ) (30,553 ) (9 ) 1,549 (92,087 ) Loss from operations (935 ) (35,300 ) (3,005 ) 493 488 (38,259 ) Other income, net 245 2,864 2,500 5 (488 ) 5,126 Share of loss from subsidiaries (30,763 ) - - - 30,763 - Loss before income taxes (31,453 ) (32,436 ) (505 ) 498 30,763 (33,133 ) Income tax (expense) benefit (1 ) 2,919 (1,239 ) - - 1,679 Net loss (31,454 ) (29,517 ) (1,744 ) 498 30,763 (31,454 ) Six months ended December 31, 2021 Parent VIEs WFOEs Other Eliminating Consolidated Net cash provided by (used in) operating activities (844 ) 42,322 (50,607 ) (172 ) - (9,301 ) Net cash used in investing activities - (7,627 ) (732 ) - - (8,359 ) Net cash provided by (used in) financing activities - - - - - - Net increase (decrease) in cash and cash equivalents, and restricted cash (844 ) 34,695 (51,339 ) (172 ) - (17,660 ) Cash and cash equivalents, and restricted cash at the beginning of year 12,770 198,842 120,422 748 - 332,782 Effect of exchange rate changes on cash and cash equivalents (160 ) - - - - (160 ) Cash and cash equivalents, and restricted cash at the end of year 11,766 233,537 69,083 576 - 314,962 Six months ended December 31, 2022 Parent VIEs WFOEs Other Eliminating Consolidated Net cash provided by (used in) operating activities (911 ) (136,477 ) 11,863 41 - (125,484 ) Net cash used in investing activities - (46,218 ) (50,037 ) - - (96,255 ) Net cash provided by (used in) financing activities - - - - - - Net increase (decrease) in cash and cash equivalents, and restricted cash (911 ) (182,695 ) (38,174 ) 41 - (221,739 ) Cash and cash equivalents, and restricted cash at the beginning of year 11,732 242,072 58,647 604 - 313,055 Effect of exchange rate changes on cash and cash equivalents 351 - - - - 351 Cash and cash equivalents, and restricted cash at the end of year 11,172 59,377 20,473 645 - 91,667 Our subsidiaries and the VIEs conduct business transactions that primarily include wealth management services and asset management services. The cash flows that have occurred between our subsidiaries and the VIEs are summarized as the following: Six months ended December 31, 2021 2022 RMB RMB US$ Cash paid by the VIEs to equity-owned subsidiary Puyi Consulting for consulting services 10,459 10,478 1,519 Cash paid by the VIEs to equity-owned subsidiary Puyi Dake for technical services - 2,850 413 Cash paid by the VIEs to equity-owned subsidiary Puyi Consulting for office rental and other services 607 532 77 Cash paid by equity-owned subsidiary Puyi Consulting to the VIEs for digital marketing and IT related services 2,400 - - Intercompany advances from equity owned subsidiaries to the VIEs 44,435 3,290 477 Repayment of intercompany advances by the VIEs 59,965 2,198 319 Intercompany advances from the VIEs to equity owned subsidiaries 63,288 42,880 6,217 Repayment of intercompany advances by equity owned subsidiaries 107,688 24,930 3,615 The cash flows occurred between our subsidiaries and the VIEs included the following: (1) cash received by our subsidiaries from the VIEs of RMB10,459 and RMB10,478 for the six months ended December 31, 2021 and 2022, respectively, for the provision of consulting services; (2) cash received by our subsidiaries from the VIEs of nil nil |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation and consolidation The condensed 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 condensed 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 condensed 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant accounting estimates reflected in the Group’s condensed 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, 2022 and December 31, 2022, the Group recorded RMB6,892 as allowances for doubtful accounts against its accounts receivable, and did not record any allowances for doubtful accounts against its other receivables and current assets and amount due from related parties. The Group did not charge off any allowances for the six months ended December 31, 2021 and 2022. (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 accrual basis using the straight-line method over the fixed or determinable dates. (g) 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 (h) 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 Condensed 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 six months ended December 31, 2021 and 2022. (i) 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. Disaggregation of revenue Six months ended 2021 2022 RMB RMB Wealth management 94,232 53,546 Distribution commissions 91,208 51,782 -- One-time commissions recognized at a point in time 44,899 16,247 -- Recurring management fees recognized over time 46,309 35,535 Performance-based distribution fees recognized at a point in time 3,024 1,764 Asset management 3,704 1,161 Management fees recognized over time 1,926 1,085 Performance-based fees recognized at a point in time 1,778 76 Insurance consulting services recognized at a point in time 3,290 6,999 Other services (1) 261 6,723 Total 101,486 68,429 (1) Other services primarily consist of consulting services for trust and family wealth inheritance recognized at a point in 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 Condensed Consolidation Statement of Financial Position. The amount of revenue recognized during the six months ended December 31, 2022 that was previously included in the contract liabilities balance as of June 30, 2022 was RMB1,500. (j) 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) costs related to consulting services for trust and family wealth inheritance. (k) 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 Condensed Consolidated Statement of Operations and Comprehensive Loss in the period that includes the enactment date. (l) 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. (m) 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, short-term loans receivable, 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. (n) Leases The Group applies Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) when accounting for leases. 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. (o) 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 Condensed 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$1.00 = RMB6.8972 on December 31, 2022, representing the certificated exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, or at any other rate. (p) 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. (q) 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. (r) 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. (s) 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. 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. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET June 30, December 31, RMB RMB US$ Accounts receivable 66,399 60,737 8,806 Allowance for doubtful accounts 6,892 6,892 999 Accounts receivable, net 59,507 53,845 7,807 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 December 31, 2021 and 2022. No allowance for doubtful accounts were written off for the six months ended December 31, 2021 and 2022. |
Other Receivables and Current A
Other Receivables and Current Assets | 6 Months Ended |
Dec. 31, 2022 | |
Other Receivables [Abstract] | |
OTHER RECEIVABLES AND CURRENT ASSETS | 4. OTHER RECEIVABLES AND CURRENT ASSETS Other receivables and current assets consist of the following: June 30, December 31, RMB RMB US$ Advances to staff 855 899 130 Prepayments to service providers 5,252 4,105 595 Rental deposits 5,523 3,922 569 Income tax prepayments 2,666 - - Other 2 - - Other receivables and current assets 14,298 8,926 1,294 |
Short-Term Loans Receivable
Short-Term Loans Receivable | 6 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM LOANS RECEIVABLE | 5. SHORT-TERM LOANS RECEIVABLE As of December 31, 2022, the balance mainly represents loan principals of RMB100,000 to a real estate developing company which we have a good cooperation history. The loans have annual interest of 7.2%, and is expected to be fully repaid before June 30, 2023. The loan was guaranteed by the legal representative and the controlling shareholder of the real estate developing company. The Company recognized interest income on short-term loans receivable of approximate RMB388 and RMB3,355 for the six months ended December 21, 2021 and 2022. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net, is comprised of the following: June 30, December 31, RMB RMB US$ Furniture, office equipment, fixtures 5,151 5,219 757 Leasehold improvements 11,405 8,375 1,214 Motor vehicles 1,932 1,932 280 18,488 15,526 2,251 Less: Accumulated depreciation (9,332 ) (9,595 ) (1,391 ) Property and equipment, net 9,156 5,931 860 Depreciation expense for the six months ended December 31, 2021 and 2022 was RMB3,273 and RMB2,058, respectively. RMB3,667 of furniture, office equipment, fixtures and leasehold improvements have been eliminated from ending balance as of December 31, 2022, consisting of RMB1,872 of disposal of leasehold improvements due to termination of rental offices, such loss is included in operating expenses. No impairment for property and equipment was recorded for the six months ended December 31, 2021 and 2022. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | 7. 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, 2022 and December 31, 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, 2022 and December 31, 2022: June 30, December 31, RMB RMB US$ Right-of-use assets 34,382 24,556 3,560 Lease liabilities, current 11,889 8,857 1,284 Lease liabilities, non-current 23,259 17,587 2,550 Total operating lease liabilities 35,148 26,444 3,834 The weighted average lease term and weighted average discount rate as of June 30, 2022 and December 31, 2022 were as follows: June 30, December 31, Weighted average lease term: Operating leases 3.31 years 3.09 years Weighted average discount rate: Operating leases 4.75 % 4.75 % The components of lease expenses for the six months ended December 31, 2021 and 2022 were as follows: Six months ended December 31, 2021 2022 RMB RMB US$ Operating lease expenses 8,564 5,180 751 Short-term lease expenses 4,474 1,551 225 Total 13,038 6,731 976 Supplemental cash flow information related to leases for the six months ended December 31, 2022 were as follows: Six months ended December 31, 2021 2022 RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease 7,878 4,121 597 Supplement noncash information New operating lease liabilities arose from obtaining right-of-use assets 25,362 2,975 431 Change on lease liabilities arose from modification on lease terms - (62 ) (9 ) Change on lease liabilities arose from early termination of operating leases (9,848 ) (8,248 ) (1,196 ) Maturities of lease liabilities as of December 31, 2022: As of December 31, RMB US$ Year ending June 30: 2023 5,396 782 2024 8,332 1,208 2025 6,676 968 2026 6,530 947 Thereafter 1,751 254 Total remaining undiscounted lease payments 28,685 4,159 Less: Interest 2,241 325 Total present value of lease liabilities 26,444 3,834 Less: Current operating lease liabilities 8,857 1,284 Non-current operating lease liabilities 17,587 2,550 |
Investors' Deposit
Investors' Deposit | 6 Months Ended |
Dec. 31, 2022 | |
Statistical Disclosure for Banks [Abstract] | |
INVESTORS' DEPOSIT | 8. INVESTORS’ DEPOSIT The balance of RMB16,434 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 | 6 Months Ended |
Dec. 31, 2022 | |
Other Payables and Accrued Expenses [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | 9. OTHER PAYABLES AND ACCRUED EXPENSES Components of other payables and accrued expenses are as follows: June 30, December 31, RMB RMB US$ Payroll payable 13,844 17,780 2,578 Accrued expenses 3,924 3,203 464 Value-added tax recoverable (700 ) (416 ) (60 ) Employee’s individual income tax 407 459 67 Others 1,970 1,503 217 Other payables and accrued expenses 19,445 22,529 3,266 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
Sundry Income | 6 Months Ended |
Dec. 31, 2022 | |
Sundry Income, Net [Abstract] | |
SUNDRY INCOME | 10. SUNDRY INCOME Components of sundry income are as follows: Six months ended December 31, 2021 2022 RMB RMB US$ Government grants 1,673 679 99 Others 1 44 6 Total sundry income 1,674 723 105 Government grants were recognized as sundry 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 | 6 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES The Group and its subsidiaries, and the 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, beginning from January 1, 2020, Puyi Bohui has been qualified for west development taxation preference and subject to an income tax rate of 15%. Puyi Zhongxiang is qualified for Shenzhen Qianhai modern services cooperation district entity tax preference and is subject to an income tax rate of 15%. Chongqing Fengyi and Puyi Consulting are qualified for west development taxation preference and are subject to an income tax rate of 15%. Dake has been 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 calendar year 2022, it is exempted for income tax for the six months ended December 31, 2022. Puyi FO and other PRC subsidiaries are subject to a standard 25% EIT. The components of the income tax benefit are as follows: Six months ended December 31, 2021 2022 RMB RMB US$ Current 564 746 108 Deferred (3,985 ) (2,425 ) (351 ) Total income tax benefit (3,421 ) (1,679 ) (243 ) The principal components of the deferred income tax assets and liabilities are as follows: June 30, December 31, RMB RMB US$ Deferred tax assets: Tax loss carry forward 28,314 24,991 3,622 Allowance for doubtful accounts, credit losses and impairment losses 1,723 1,723 250 Other temporary book/tax differences - 6,041 876 Subtotal 30,037 32,755 4,748 Less: valuation allowances 6,059 6,353 920 Total 23,978 26,403 3,828 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 RMB184,258 and RMB184,801 as of June 30, 2022 and December 31, 2022, respectively. As of December 31, 2022, the tax loss carry-forwards will expire between the calendar years 2023 through 2027. For the six months ended December 31, 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: Six months ended December 31, 2021 2022 RMB RMB US$ Income (loss) from operations before income taxes (42,665 ) (33,133 ) (4,804 ) PRC income tax statutory rate 25 % 25 % 25 % Income tax expense (benefit) at statutory tax rate (10,666 ) (8,283 ) (1,201 ) Preferential tax treatments 3,966 3,513 509 Expenses not deductible for tax purposes 421 330 48 Uncertain tax provision 500 - - Temporary book/tax differences - 2,286 332 Reversal of previously-recognized DTA due to changes in applicable tax rate 768 - - Impact of different tax rates in other jurisdictions 141 48 7 Others 197 133 19 Valuation allowances 1,252 294 43 Income tax expense (benefit) (3,421 ) (1,679 ) (243 ) 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 December 31, 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, 2022 and December 31, 2022 the Group had 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 the six months ended December 31, 2021 and 2022, the Group recognized no interest or penalty expense related to unrecognized tax benefits. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | 12. LOSS PER SHARE The computation of basic and diluted net loss per ordinary share is as follows: Six months ended December 31, 2021 2022 RMB RMB US$ Numerator: Net loss (39,244 ) (31,454 ) (4,561 ) Denominator: Weighted average number of ordinary shares outstanding 90,472,014 90,472,014 90,472,014 Basic & diluted net loss per ordinary share (0.434 ) (0.348 ) (0.050 ) |
Condensed Financial Statements
Condensed Financial Statements of the Company | 6 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS OF THE COMPANY | 13. 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 June 30, December 31, RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 11,732 11,172 1,620 Amounts due from other subsidiaries 77 80 12 Total current assets 11,809 11,252 1,632 Investments in subsidiaries 248,459 217,696 31,562 Total assets 260,268 228,948 33,194 LIABILITIES AND EQUITY: LIABILITIES: Current liabilities: Other payables and accrued expenses 217 - - Total current liabilities 217 - - Total liabilities 217 - - Commitments and contingencies EQUITY: Ordinary shares (2,000,000,000 shares at US$0.001 each authorized, and 90,472,014 shares issued and outstanding as of June 30, 2022 and December 31, 2022) 600 600 87 Additional paid-in capital 224,694 224,694 32,578 Retained earnings 35,150 3,696 535 Accumulated other comprehensive income (393 ) (42 ) (6 ) Total equity 260,051 228,948 33,194 Total liabilities and equity 260,268 228,948 33,194 Condensed Statements of Operations and Comprehensive Loss Six months ended December 31, 2021 2022 RMB RMB US$ General and administrative expenses (398 ) (935 ) (136 ) Other income, net 18 245 36 Equity in loss of subsidiaries (38,805 ) (30,763 ) (4,460 ) Loss before income taxes (39,185 ) (31,453 ) (4,560 ) Income tax expense (64 ) (1 ) - Net loss (39,249 ) (31,454 ) (4,560 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (160 ) 351 51 Total Comprehensive loss (39,409 ) (31,103 ) (4,509 ) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 14. 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. Fanhua Yuntong Enterprise Management Advisory (Shenzhen) Co., Ltd. (“Fanhua Yuntong”) Subsidiary of Fanhua Inc. Related party transactions: Note Six months ended December 31, 2021 2022 RMB RMB US$ Other services Insurance consulting service income accrued from Fanhua Lianxing a 3,312 6,497 942 Insurance consulting service income received from Fanhua Lianxing a 2,320 6,449 935 Trust consulting service income accrued from Fanhua Lianxing b - 5,643 818 Trust consulting service income received from Fanhua Lianxing b - 54 8 Selling expense Promotion expense accrued and adjusted to Fanhua Yuntong c 355 (55 ) (8 ) Promotion expense paid to Fanhua Yuntong c 141 175 25 Notes: (a) Starting from January 2021, the Group has cooperated with Fanhua Lianxing to provide insurance consulting service. (b) Starting from January 2022, the Group has cooperated with Fanhua Lianxing to provide trust consulting service. (c) Starting from August 2021, the Group has cooperated with Fanhua Yuntong and Fanhua Yuntong has provided client referral service to us. Amounts due from related parties: Note June 30, December 31, RMB RMB US$ Fanhua Lianxing a 2,895 7,761 1,125 Total 2,895 7,761 1,125 Advance receipts from related parties: Note June 30, December 31, RMB RMB US$ Fanhua Lianxing b (1,500 ) - - Total (1,500 ) - - Amount due to related parties: Note June 30, December 31, RMB RMB US$ Fanhua Yuntong c (292 ) (236 ) (34 ) Total (292 ) (236 ) (34 ) |
Statutory Reserve
Statutory Reserve | 6 Months Ended |
Dec. 31, 2022 | |
Statutory Reserve [Abstract] | |
STATUTORY RESERVE | 15. 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, 2022 and December 31, 2022, the balance of statutory reserve was RMB23,314. |
Contingencies
Contingencies | 6 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 16. 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 condensed financial statements. |
Impact of Covid-19
Impact of Covid-19 | 6 Months Ended |
Dec. 31, 2022 | |
Impact of Covid-19 [Abstract] | |
IMPACT OF COVID-19 | 17. IMPACT OF COVID-19 The COVID-19 has broadly affected China’s and the global economy since its outbreak in late 2019. In response, China imposed widespread lockdowns, closure of work places and restrictions on mobility and travel to contain the spread of the virus, therefore our results of operations and financial performance have been adversely affected. Many of the above restrictive measures previously adopted by the PRC governments at various levels to control the spread of the COVID-19 virus have been revoked or replaced with more flexible measures since December 2022. While the revocation or replacement of the restrictive measures to contain the COVID-19 pandemic could have a positive impact on our normal operations, it also led to the recent surge in COVID-19 cases in China, and as a result, we experienced temporary impact to our operations when some employees were infected with COVID-19 in December 2022. To the extent that future waves of COVID-19 disrupt normal business operations in China, we may face operational challenges with our services, and we likely will have to adopt similar remote work arrangements and other measures to minimize such impact. Moreover, any decline in the individual disposable income and investors’ willingness to invest in wealth management products due to a worsening economic performance and outlook as a result of the COVID-19 pandemic may also lessen demands for our services. There remains uncertainty as to the future impact of the virus, especially in light of this change in policy. We cannot be assured that more lockdowns and other restrictive measures will not be implanted in the future if new COVID-19 variants emerge. The extent to which the COVID-19 pandemic impacts our results of operations and financial performance will depend on future developments, which are highly uncertain, including the possibility that COVID-19 may exert long-term negative impact on China’s economy. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS The Group has evaluated subsequent events through the issuance of the condensed consolidated financial statements and no subsequent event has been identified that would have required adjustment or disclosure in the condensed consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | (a) Basis of presentation and consolidation The condensed 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 condensed 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 condensed 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant accounting estimates reflected in the Group’s condensed 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, 2022 and December 31, 2022, the Group recorded RMB6,892 as allowances for doubtful accounts against its accounts receivable, and did not record any allowances for doubtful accounts against its other receivables and current assets and amount due from related parties. The Group did not charge off any allowances for the six months ended December 31, 2021 and 2022. |
Investments | (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 accrual basis using the straight-line method over the fixed or determinable dates. |
Property and equipment, net | (g) 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 |
Impairment of long-lived assets | (h) 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 Condensed 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 six months ended December 31, 2021 and 2022. |
Revenue recognition | (i) 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. Disaggregation of revenue Six months ended 2021 2022 RMB RMB Wealth management 94,232 53,546 Distribution commissions 91,208 51,782 -- One-time commissions recognized at a point in time 44,899 16,247 -- Recurring management fees recognized over time 46,309 35,535 Performance-based distribution fees recognized at a point in time 3,024 1,764 Asset management 3,704 1,161 Management fees recognized over time 1,926 1,085 Performance-based fees recognized at a point in time 1,778 76 Insurance consulting services recognized at a point in time 3,290 6,999 Other services (1) 261 6,723 Total 101,486 68,429 (1) Other services primarily consist of consulting services for trust and family wealth inheritance recognized at a point in 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 Condensed Consolidation Statement of Financial Position. The amount of revenue recognized during the six months ended December 31, 2022 that was previously included in the contract liabilities balance as of June 30, 2022 was RMB1,500. |
Cost of sales | (j) 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) costs related to consulting services for trust and family wealth inheritance. |
Income taxes | (k) 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 Condensed Consolidated Statement of Operations and Comprehensive Loss in the period that includes the enactment date. |
Uncertain tax positions | (l) 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. |
Fair value of financial instruments | (m) 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, short-term loans receivable, 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 | (n) Leases The Group applies Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) when accounting for leases. 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 | (o) 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 Condensed 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$1.00 = RMB6.8972 on December 31, 2022, representing the certificated exchange rate published by the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2022, or at any other rate. |
Segment reporting | (p) 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”) | (q) 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 | (r) 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 | (s) 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. 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) | 6 Months Ended |
Dec. 31, 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 | June 30, 2022 Parent VIEs WFOEs Other Eliminating Consolidated Cash and cash equivalents 11,732 123,276 58,647 604 - 194,259 Restricted cash - 118,796 - - - 118,796 Inter-group balance due from VIEs and subsidiaries 77 20,000 46,029 - (66,106 ) - Investments in subsidiaries 248,459 - - - (248,459 ) - Other assets - 91,869 59,012 - - 150,881 Total assets 260,268 353,941 163,688 604 (314,565 ) 463,936 Inter-group balance due to VIEs and subsidiaries - 46,008 20,000 21 (66,029 ) - Inter-group balance due to parent - - - 77 (77 ) - Other liabilities 217 181,959 21,709 - - 203,885 Total liabilities 217 227,967 41,709 98 (66,106 ) 203,885 Total equity 260,051 125,974 121,979 506 (248,459 ) 260,051 December 31, 2022 Parent VIEs WFOEs Other Eliminating Consolidated Cash and cash equivalents 11,172 42,943 20,473 645 - 75,233 Restricted cash - 16,434 - - - 16,434 Inter-group balance due from VIEs and subsidiaries 80 37,950 47,121 - (85,151 ) - Investments in subsidiaries 217,696 - - - (217,696 ) - Other assets - 122,218 109,957 460 - 232,635 Total assets 228,948 219,545 177,551 1,105 (302,847 ) 324,302 Inter-group balance due to VIEs and subsidiaries - 47,100 37,950 21 (85,071 ) - Inter-group balance due to parent - - - 80 (80 ) - Other liabilities - 75,988 19,366 - - 95,354 Total liabilities - 123,088 57,316 101 (85,151 ) 95,354 Total equity 228,948 96,457 120,235 1,004 (217,696 ) 228,948 |
Schedule of condensed consolidating schedule of results of operations | Six months ended December 31, 2021 Parent VIEs WFOEs Other Eliminating Consolidated Revenues - 89,381 23,670 - (11,565 ) 101,486 Cost of revenues - (31,312 ) (2,317 ) - 11,565 (22,064 ) Operating expenses (398 ) (86,701 ) (41,053 ) (185 ) 488 (127,849 ) Loss from operations (398 ) (28,632 ) (19,700 ) (185 ) 488 (48,427 ) Other income, net 18 2,390 3,838 - (484 ) 5,762 Share of loss from subsidiaries (38,805 ) - - - 38,805 - Loss before income taxes (39,185 ) (26,242 ) (15,862 ) (185 ) 38,809 (42,665 ) Income tax (expense) benefit (64 ) 3,735 (250 ) - - 3,421 Net loss (39,249 ) (22,507 ) (16,112 ) (185 ) 38,809 (39,244 ) Six months ended December 31, 2022 Parent VIEs WFOEs Other Eliminating Consolidated Revenues - 46,576 33,758 502 (12,407 ) 68,429 Cost of revenues - (19,737 ) (6,201 ) - 11,346 (14,601 ) Operating expenses (935 ) (62,139 ) (30,553 ) (9 ) 1,549 (92,087 ) Loss from operations (935 ) (35,300 ) (3,005 ) 493 488 (38,259 ) Other income, net 245 2,864 2,500 5 (488 ) 5,126 Share of loss from subsidiaries (30,763 ) - - - 30,763 - Loss before income taxes (31,453 ) (32,436 ) (505 ) 498 30,763 (33,133 ) Income tax (expense) benefit (1 ) 2,919 (1,239 ) - - 1,679 Net loss (31,454 ) (29,517 ) (1,744 ) 498 30,763 (31,454 ) |
Schedule of condensed consolidating schedule of cash flows | Six months ended December 31, 2021 Parent VIEs WFOEs Other Eliminating Consolidated Net cash provided by (used in) operating activities (844 ) 42,322 (50,607 ) (172 ) - (9,301 ) Net cash used in investing activities - (7,627 ) (732 ) - - (8,359 ) Net cash provided by (used in) financing activities - - - - - - Net increase (decrease) in cash and cash equivalents, and restricted cash (844 ) 34,695 (51,339 ) (172 ) - (17,660 ) Cash and cash equivalents, and restricted cash at the beginning of year 12,770 198,842 120,422 748 - 332,782 Effect of exchange rate changes on cash and cash equivalents (160 ) - - - - (160 ) Cash and cash equivalents, and restricted cash at the end of year 11,766 233,537 69,083 576 - 314,962 Six months ended December 31, 2022 Parent VIEs WFOEs Other Eliminating Consolidated Net cash provided by (used in) operating activities (911 ) (136,477 ) 11,863 41 - (125,484 ) Net cash used in investing activities - (46,218 ) (50,037 ) - - (96,255 ) Net cash provided by (used in) financing activities - - - - - - Net increase (decrease) in cash and cash equivalents, and restricted cash (911 ) (182,695 ) (38,174 ) 41 - (221,739 ) Cash and cash equivalents, and restricted cash at the beginning of year 11,732 242,072 58,647 604 - 313,055 Effect of exchange rate changes on cash and cash equivalents 351 - - - - 351 Cash and cash equivalents, and restricted cash at the end of year 11,172 59,377 20,473 645 - 91,667 |
Schedule of subsidiaries and the VIEs conduct business transactions that primarily include wealth management services and asset management services. | Six months ended December 31, 2021 2022 RMB RMB US$ Cash paid by the VIEs to equity-owned subsidiary Puyi Consulting for consulting services 10,459 10,478 1,519 Cash paid by the VIEs to equity-owned subsidiary Puyi Dake for technical services - 2,850 413 Cash paid by the VIEs to equity-owned subsidiary Puyi Consulting for office rental and other services 607 532 77 Cash paid by equity-owned subsidiary Puyi Consulting to the VIEs for digital marketing and IT related services 2,400 - - Intercompany advances from equity owned subsidiaries to the VIEs 44,435 3,290 477 Repayment of intercompany advances by the VIEs 59,965 2,198 319 Intercompany advances from the VIEs to equity owned subsidiaries 63,288 42,880 6,217 Repayment of intercompany advances by equity owned subsidiaries 107,688 24,930 3,615 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
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 (h) Impairment of long-lived assets (i) Revenue recognition |
Schedule of disaggregation of revenue | Six months ended 2021 2022 RMB RMB Wealth management 94,232 53,546 Distribution commissions 91,208 51,782 -- One-time commissions recognized at a point in time 44,899 16,247 -- Recurring management fees recognized over time 46,309 35,535 Performance-based distribution fees recognized at a point in time 3,024 1,764 Asset management 3,704 1,161 Management fees recognized over time 1,926 1,085 Performance-based fees recognized at a point in time 1,778 76 Insurance consulting services recognized at a point in time 3,290 6,999 Other services (1) 261 6,723 Total 101,486 68,429 (1) Other services primarily consist of consulting services for trust and family wealth inheritance recognized at a point in time. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of accounts receivable | June 30, December 31, RMB RMB US$ Accounts receivable 66,399 60,737 8,806 Allowance for doubtful accounts 6,892 6,892 999 Accounts receivable, net 59,507 53,845 7,807 |
Other Receivables and Current_2
Other Receivables and Current Assets (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Other Receivables [Abstract] | |
Schedule of other receivables and current assets | June 30, December 31, RMB RMB US$ Advances to staff 855 899 130 Prepayments to service providers 5,252 4,105 595 Rental deposits 5,523 3,922 569 Income tax prepayments 2,666 - - Other 2 - - Other receivables and current assets 14,298 8,926 1,294 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, Net [Abstract] | |
Schedule of property and equipment, net | June 30, December 31, RMB RMB US$ Furniture, office equipment, fixtures 5,151 5,219 757 Leasehold improvements 11,405 8,375 1,214 Motor vehicles 1,932 1,932 280 18,488 15,526 2,251 Less: Accumulated depreciation (9,332 ) (9,595 ) (1,391 ) Property and equipment, net 9,156 5,931 860 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of ROU assets and related lease liabilities | June 30, December 31, RMB RMB US$ Right-of-use assets 34,382 24,556 3,560 Lease liabilities, current 11,889 8,857 1,284 Lease liabilities, non-current 23,259 17,587 2,550 Total operating lease liabilities 35,148 26,444 3,834 |
Schedule of weighted average lease term and weighted average discount rate | June 30, December 31, Weighted average lease term: Operating leases 3.31 years 3.09 years Weighted average discount rate: Operating leases 4.75 % 4.75 % |
Schedule of lease expenses | Six months ended December 31, 2021 2022 RMB RMB US$ Operating lease expenses 8,564 5,180 751 Short-term lease expenses 4,474 1,551 225 Total 13,038 6,731 976 |
Schedule of supplemental cash flow information related to leases | Six months ended December 31, 2021 2022 RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease 7,878 4,121 597 Supplement noncash information New operating lease liabilities arose from obtaining right-of-use assets 25,362 2,975 431 Change on lease liabilities arose from modification on lease terms - (62 ) (9 ) Change on lease liabilities arose from early termination of operating leases (9,848 ) (8,248 ) (1,196 ) |
Schedule of maturities of lease liabilities | As of December 31, RMB US$ Year ending June 30: 2023 5,396 782 2024 8,332 1,208 2025 6,676 968 2026 6,530 947 Thereafter 1,751 254 Total remaining undiscounted lease payments 28,685 4,159 Less: Interest 2,241 325 Total present value of lease liabilities 26,444 3,834 Less: Current operating lease liabilities 8,857 1,284 Non-current operating lease liabilities 17,587 2,550 |
Other Payables and Accrued Ex_2
Other Payables and Accrued Expenses (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Other Payables and Accrued Expenses [Abstract] | |
Schedule of components of other payables and accrued expenses | June 30, December 31, RMB RMB US$ Payroll payable 13,844 17,780 2,578 Accrued expenses 3,924 3,203 464 Value-added tax recoverable (700 ) (416 ) (60 ) Employee’s individual income tax 407 459 67 Others 1,970 1,503 217 Other payables and accrued expenses 19,445 22,529 3,266 |
Sundry Income (Tables)
Sundry Income (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Sundry Income, Net [Abstract] | |
Schedule of components of sundry income | Six months ended December 31, 2021 2022 RMB RMB US$ Government grants 1,673 679 99 Others 1 44 6 Total sundry income 1,674 723 105 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the income tax provision | Six months ended December 31, 2021 2022 RMB RMB US$ Current 564 746 108 Deferred (3,985 ) (2,425 ) (351 ) Total income tax benefit (3,421 ) (1,679 ) (243 ) |
Schedule of components of the deferred income tax assets and liabilities | June 30, December 31, RMB RMB US$ Deferred tax assets: Tax loss carry forward 28,314 24,991 3,622 Allowance for doubtful accounts, credit losses and impairment losses 1,723 1,723 250 Other temporary book/tax differences - 6,041 876 Subtotal 30,037 32,755 4,748 Less: valuation allowances 6,059 6,353 920 Total 23,978 26,403 3,828 |
Schedule of reconciliation between the statutory tax rate to income before income taxes | Six months ended December 31, 2021 2022 RMB RMB US$ Income (loss) from operations before income taxes (42,665 ) (33,133 ) (4,804 ) PRC income tax statutory rate 25 % 25 % 25 % Income tax expense (benefit) at statutory tax rate (10,666 ) (8,283 ) (1,201 ) Preferential tax treatments 3,966 3,513 509 Expenses not deductible for tax purposes 421 330 48 Uncertain tax provision 500 - - Temporary book/tax differences - 2,286 332 Reversal of previously-recognized DTA due to changes in applicable tax rate 768 - - Impact of different tax rates in other jurisdictions 141 48 7 Others 197 133 19 Valuation allowances 1,252 294 43 Income tax expense (benefit) (3,421 ) (1,679 ) (243 ) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income (loss) per ordinary share | Six months ended December 31, 2021 2022 RMB RMB US$ Numerator: Net loss (39,244 ) (31,454 ) (4,561 ) Denominator: Weighted average number of ordinary shares outstanding 90,472,014 90,472,014 90,472,014 Basic & diluted net loss per ordinary share (0.434 ) (0.348 ) (0.050 ) |
Condensed Financial Statement_2
Condensed Financial Statements of the Company (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed statements of financial position | June 30, December 31, RMB RMB US$ ASSETS: Current assets: Cash and cash equivalents 11,732 11,172 1,620 Amounts due from other subsidiaries 77 80 12 Total current assets 11,809 11,252 1,632 Investments in subsidiaries 248,459 217,696 31,562 Total assets 260,268 228,948 33,194 LIABILITIES AND EQUITY: LIABILITIES: Current liabilities: Other payables and accrued expenses 217 - - Total current liabilities 217 - - Total liabilities 217 - - Commitments and contingencies EQUITY: Ordinary shares (2,000,000,000 shares at US$0.001 each authorized, and 90,472,014 shares issued and outstanding as of June 30, 2022 and December 31, 2022) 600 600 87 Additional paid-in capital 224,694 224,694 32,578 Retained earnings 35,150 3,696 535 Accumulated other comprehensive income (393 ) (42 ) (6 ) Total equity 260,051 228,948 33,194 Total liabilities and equity 260,268 228,948 33,194 |
Schedule of condensed statements of operations and comprehensive income (loss) | Six months ended December 31, 2021 2022 RMB RMB US$ General and administrative expenses (398 ) (935 ) (136 ) Other income, net 18 245 36 Equity in loss of subsidiaries (38,805 ) (30,763 ) (4,460 ) Loss before income taxes (39,185 ) (31,453 ) (4,560 ) Income tax expense (64 ) (1 ) - Net loss (39,249 ) (31,454 ) (4,560 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments (160 ) 351 51 Total Comprehensive loss (39,409 ) (31,103 ) (4,509 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [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. Fanhua Yuntong Enterprise Management Advisory (Shenzhen) Co., Ltd. (“Fanhua Yuntong”) Subsidiary of Fanhua Inc. |
Schedule of related party transactions | Note Six months ended December 31, 2021 2022 RMB RMB US$ Other services Insurance consulting service income accrued from Fanhua Lianxing a 3,312 6,497 942 Insurance consulting service income received from Fanhua Lianxing a 2,320 6,449 935 Trust consulting service income accrued from Fanhua Lianxing b - 5,643 818 Trust consulting service income received from Fanhua Lianxing b - 54 8 Selling expense Promotion expense accrued and adjusted to Fanhua Yuntong c 355 (55 ) (8 ) Promotion expense paid to Fanhua Yuntong c 141 175 25 (a) Starting from January 2021, the Group has cooperated with Fanhua Lianxing to provide insurance consulting service. (b) Starting from January 2022, the Group has cooperated with Fanhua Lianxing to provide trust consulting service. (c) Starting from August 2021, the Group has cooperated with Fanhua Yuntong and Fanhua Yuntong has provided client referral service to us. |
Schedule of amounts due from related parties | Note June 30, December 31, RMB RMB US$ Fanhua Lianxing a 2,895 7,761 1,125 Total 2,895 7,761 1,125 Note June 30, December 31, RMB RMB US$ Fanhua Lianxing b (1,500 ) - - Total (1,500 ) - - Note June 30, December 31, RMB RMB US$ Fanhua Yuntong c (292 ) (236 ) (34 ) Total (292 ) (236 ) (34 ) |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Aug. 06, 2018 | |
Organization and Principal Activities (Details) [Line Items] | |||
Subsidiaries and VIE description | cash received by the VIEs from our subsidiaries as inter-company advances of RMB44,435 and RMB3,290 for the six months ended December 31, 2021 and 2022, respectively; (6) repayment of inter-company advances by the VIEs to our subsidiaries of RMB59,965 and RMB2,198 for the six months ended December 31, 2021 and 2022, respectively; (7) cash received by our subsidiaries from the VIEs as inter-company advances of RMB63,288 and RMB42,880 for the six months ended December 31, 2021 and 2022, respectively; and (8) repayment of inter-company advances by our subsidiaries to the VIEs of RMB107,688 and RMB24,930 for the six months ended December 31, 2021 and 2022, respectively. | ||
Maximum [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Investable assets | ¥ 30 | ||
Minimum [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Investable assets | ¥ 600 | ||
VIE [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Provision of consulting services | ¥ 10,459 | ¥ 10,478 | |
Cash received | 2,850 | ||
Provision of office rental and other services | 607 | 532 | |
Provision of digital marketing and IT related services | ¥ 2,400 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of subsidiaries and VIE | 6 Months Ended |
Dec. 31, 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 - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Parent [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | ¥ 11,172 | ¥ 11,732 |
Restricted cash | ||
Inter-group balance due from VIEs and subsidiaries | 80 | 77 |
Investments in subsidiaries | 217,696 | 248,459 |
Other assets | ||
Total assets | 228,948 | 260,268 |
Inter-group balance due to VIEs and subsidiaries | ||
Inter-group balance due to parent | ||
Other liabilities | 217 | |
Total liabilities | 217 | |
Total equity | 228,948 | 260,051 |
VIEs [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 42,943 | 123,276 |
Restricted cash | 16,434 | 118,796 |
Inter-group balance due from VIEs and subsidiaries | 37,950 | 20,000 |
Investments in subsidiaries | ||
Other assets | 122,218 | 91,869 |
Total assets | 219,545 | 353,941 |
Inter-group balance due to VIEs and subsidiaries | 47,100 | 46,008 |
Inter-group balance due to parent | ||
Other liabilities | 75,988 | 181,959 |
Total liabilities | 123,088 | 227,967 |
Total equity | 96,457 | 125,974 |
WFOEs [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 20,473 | 58,647 |
Restricted cash | ||
Inter-group balance due from VIEs and subsidiaries | 47,121 | 46,029 |
Investments in subsidiaries | ||
Other assets | 109,957 | 59,012 |
Total assets | 177,551 | 163,688 |
Inter-group balance due to VIEs and subsidiaries | 37,950 | 20,000 |
Inter-group balance due to parent | ||
Other liabilities | 19,366 | 21,709 |
Total liabilities | 57,316 | 41,709 |
Total equity | 120,235 | 121,979 |
Other subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 645 | 604 |
Restricted cash | ||
Inter-group balance due from VIEs and subsidiaries | ||
Investments in subsidiaries | ||
Other assets | 460 | |
Total assets | 1,105 | 604 |
Inter-group balance due to VIEs and subsidiaries | 21 | 21 |
Inter-group balance due to parent | 80 | 77 |
Other liabilities | ||
Total liabilities | 101 | 98 |
Total equity | 1,004 | 506 |
Eliminating adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | ||
Restricted cash | ||
Inter-group balance due from VIEs and subsidiaries | (85,151) | (66,106) |
Investments in subsidiaries | (217,696) | (248,459) |
Other assets | ||
Total assets | (302,847) | (314,565) |
Inter-group balance due to VIEs and subsidiaries | (85,071) | (66,029) |
Inter-group balance due to parent | (80) | (77) |
Other liabilities | ||
Total liabilities | (85,151) | (66,106) |
Total equity | (217,696) | (248,459) |
Consolidated totals [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 75,233 | 194,259 |
Restricted cash | 16,434 | 118,796 |
Inter-group balance due from VIEs and subsidiaries | ||
Investments in subsidiaries | ||
Other assets | 232,635 | 150,881 |
Total assets | 324,302 | 463,936 |
Inter-group balance due to VIEs and subsidiaries | ||
Inter-group balance due to parent | ||
Other liabilities | 95,354 | 203,885 |
Total liabilities | 95,354 | 203,885 |
Total equity | ¥ 228,948 | ¥ 260,051 |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of condensed consolidating schedule of results of operations - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Parent [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | ||
Cost of revenues | ||
Operating expenses | (935) | (398) |
Loss from operations | (935) | (398) |
Other income, net | 245 | 18 |
Share of loss from subsidiaries | (30,763) | (38,805) |
Loss before income taxes | (31,453) | (39,185) |
Income tax (expense) benefit | (1) | (64) |
Net loss | (31,454) | (39,249) |
VIEs [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | 46,576 | 89,381 |
Cost of revenues | (19,737) | (31,312) |
Operating expenses | (62,139) | (86,701) |
Loss from operations | (35,300) | (28,632) |
Other income, net | 2,864 | 2,390 |
Share of loss from subsidiaries | ||
Loss before income taxes | (32,436) | (26,242) |
Income tax (expense) benefit | 2,919 | 3,735 |
Net loss | (29,517) | (22,507) |
WFOEs [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | 33,758 | 23,670 |
Cost of revenues | (6,201) | (2,317) |
Operating expenses | (30,553) | (41,053) |
Loss from operations | (3,005) | (19,700) |
Other income, net | 2,500 | 3,838 |
Share of loss from subsidiaries | ||
Loss before income taxes | (505) | (15,862) |
Income tax (expense) benefit | (1,239) | (250) |
Net loss | (1,744) | (16,112) |
Other subsidiaries [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | 502 | |
Cost of revenues | ||
Operating expenses | (9) | (185) |
Loss from operations | 493 | (185) |
Other income, net | 5 | |
Share of loss from subsidiaries | ||
Loss before income taxes | 498 | (185) |
Income tax (expense) benefit | ||
Net loss | 498 | (185) |
Eliminating adjustments [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | (12,407) | (11,565) |
Cost of revenues | 11,346 | 11,565 |
Operating expenses | 1,549 | 488 |
Loss from operations | 488 | 488 |
Other income, net | (488) | (484) |
Share of loss from subsidiaries | 30,763 | 38,805 |
Loss before income taxes | 30,763 | 38,809 |
Income tax (expense) benefit | ||
Net loss | 30,763 | 38,809 |
Consolidated totals [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | 68,429 | 101,486 |
Cost of revenues | (14,601) | (22,064) |
Operating expenses | (92,087) | (127,849) |
Loss from operations | (38,259) | (48,427) |
Other income, net | 5,126 | 5,762 |
Share of loss from subsidiaries | ||
Loss before income taxes | (33,133) | (42,665) |
Income tax (expense) benefit | 1,679 | 3,421 |
Net loss | ¥ (31,454) | ¥ (39,244) |
Organization and Principal Ac_7
Organization and Principal Activities (Details) - Schedule of condensed consolidating schedule of cash flows - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Parent [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | ¥ (911) | ¥ (844) |
Net cash used in investing activities | ||
Net cash provided by (used in) financing activities | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (911) | (844) |
Cash and cash equivalents, and restricted cash at the beginning of year | 11,732 | 12,770 |
Effect of exchange rate changes on cash and cash equivalents | 351 | (160) |
Cash and cash equivalents, and restricted cash at the end of year | 11,172 | 11,766 |
VIEs [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (136,477) | 42,322 |
Net cash used in investing activities | (46,218) | (7,627) |
Net cash provided by (used in) financing activities | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (182,695) | 34,695 |
Cash and cash equivalents, and restricted cash at the beginning of year | 242,072 | 198,842 |
Effect of exchange rate changes on cash and cash equivalents | ||
Cash and cash equivalents, and restricted cash at the end of year | 59,377 | 233,537 |
WFOEs [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 11,863 | (50,607) |
Net cash used in investing activities | (50,037) | (732) |
Net cash provided by (used in) financing activities | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (38,174) | (51,339) |
Cash and cash equivalents, and restricted cash at the beginning of year | 58,647 | 120,422 |
Effect of exchange rate changes on cash and cash equivalents | ||
Cash and cash equivalents, and restricted cash at the end of year | 20,473 | 69,083 |
Other subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 41 | (172) |
Net cash used in investing activities | ||
Net cash provided by (used in) financing activities | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | 41 | (172) |
Cash and cash equivalents, and restricted cash at the beginning of year | 604 | 748 |
Effect of exchange rate changes on cash and cash equivalents | ||
Cash and cash equivalents, and restricted cash at the end of year | 645 | 576 |
Eliminating adjustments [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | ||
Net cash used in investing activities | ||
Net cash provided by (used in) financing activities | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | ||
Cash and cash equivalents, and restricted cash at the beginning of year | ||
Effect of exchange rate changes on cash and cash equivalents | ||
Cash and cash equivalents, and restricted cash at the end of year | ||
Consolidated totals [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (125,484) | (9,301) |
Net cash used in investing activities | (96,255) | (8,359) |
Net cash provided by (used in) financing activities | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | (221,739) | (17,660) |
Cash and cash equivalents, and restricted cash at the beginning of year | 313,055 | 332,782 |
Effect of exchange rate changes on cash and cash equivalents | 351 | (160) |
Cash and cash equivalents, and restricted cash at the end of year | ¥ 91,667 | ¥ 314,962 |
Organization and Principal Ac_8
Organization and Principal Activities (Details) - Schedule of subsidiaries and the VIEs conduct business transactions that primarily include wealth management services and asset management services ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Variable Interest Entity [Line Items] | |||
Intercompany advances from equity owned subsidiaries to the VIEs | ¥ 3,290 | $ 477 | ¥ 44,435 |
Repayment of intercompany advances by the VIEs | 2,198 | 319 | 59,965 |
Intercompany advances from the VIEs to equity owned subsidiaries | 42,880 | 6,217 | 63,288 |
Repayment of intercompany advances by equity owned subsidiaries | 24,930 | 3,615 | 107,688 |
Consulting services [Member] | |||
Variable Interest Entity [Line Items] | |||
Cash paid by the VIEs to equity-owned subsidiary | 10,478 | 1,519 | 10,459 |
Technical services [Member] | |||
Variable Interest Entity [Line Items] | |||
Cash paid by the VIEs to equity-owned subsidiary | 2,850 | 413 | |
Office rental and other services [Member] | |||
Variable Interest Entity [Line Items] | |||
Cash paid by the VIEs to equity-owned subsidiary | 532 | 77 | 607 |
Digital marketing and IT related services [Member] | |||
Variable Interest Entity [Line Items] | |||
Cash paid by the VIEs to equity-owned subsidiary | ¥ 2,400 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ¥ / shares in Units, ¥ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2022 CNY (¥) $ / shares | Jun. 30, 2022 CNY (¥) | |
Accounting Policies [Abstract] | |||
Allowances for doubtful accounts | ¥ 6,892 | ¥ 6,892 | |
Contract liabilities | ¥ 1,500 | ||
Underpayment of taxes | ¥ 100 | ||
Convenience fees rate | (per share) | ¥ 6.8972 | ¥ 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 6 Months Ended |
Dec. 31, 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 | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Disaggregation of Revenue [Abstract] | |||
Wealth management | ¥ 53,546 | ¥ 94,232 | |
Distribution commissions | 51,782 | 91,208 | |
-- One-time commissions recognized at a point in time | 16,247 | 44,899 | |
-- Recurring management fees recognized over time | 35,535 | 46,309 | |
Performance-based distribution fees recognized at a point in time | 1,764 | 3,024 | |
Asset management | 1,161 | 3,704 | |
Management fees recognized over time | 1,085 | 1,926 | |
Performance-based fees recognized at a point in time | 76 | 1,778 | |
Insurance consulting services recognized at a point in time | 6,999 | 3,290 | |
Other services | 6,723 | 261 | [1] |
Total | ¥ 68,429 | ¥ 101,486 | |
[1] Other services primarily consist of consulting services for trust and family wealth inheritance recognized at a point in time. |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 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 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Schedule of accounts receivable [Abstract] | |||
Accounts receivable | ¥ 60,737 | $ 8,806 | ¥ 66,399 |
Allowance for doubtful accounts | 6,892 | 999 | 6,892 |
Accounts receivable, net | ¥ 53,845 | $ 7,807 | ¥ 59,507 |
Other Receivables and Current_3
Other Receivables and Current Assets (Details) - Schedule of other receivables and current assets ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Schedule Of Other Receivables [Abstract] | |||
Advances to staff | ¥ 899 | $ 130 | ¥ 855 |
Prepayments to service providers | 4,105 | 595 | 5,252 |
Rental deposits | 3,922 | 569 | 5,523 |
Income tax prepayments | 2,666 | ||
Other | 2 | ||
Other receivables and current assets | ¥ 8,926 | $ 1,294 | ¥ 14,298 |
Short-Term Loans Receivable (De
Short-Term Loans Receivable (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 21, 2022 | Dec. 21, 2021 | |
Debt Disclosure [Abstract] | |||
Loan balance | ¥ 100,000 | ||
Annual interest, percentage | 7.20% | ||
Short term loan | ¥ 3,355 | ¥ 388 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - CNY (¥) | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | ¥ 2,058 | ¥ 3,273 |
Leasehold improvements | 3,667 | |
Disposal of leasehold improvements | ¥ 1,872 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | ¥ 15,526 | $ 2,251 | ¥ 18,488 |
Less: Accumulated depreciation | (9,595) | (1,391) | (9,332) |
Property and equipment, net | 5,931 | 860 | 9,156 |
Furniture, office equipment, fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,219 | 757 | 5,151 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,375 | 1,214 | 11,405 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | ¥ 1,932 | $ 280 | ¥ 1,932 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of ROU assets and related lease liabilities ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Schedule of ROU assets and related lease liabilities [Abstract] | |||
Right-of-use assets | ¥ 24,556 | $ 3,560 | ¥ 34,382 |
Lease liabilities, current | 8,857 | 1,284 | 11,889 |
Lease liabilities, non-current | 17,587 | 2,550 | 23,259 |
Total operating lease liabilities | ¥ 26,444 | $ 3,834 | ¥ 35,148 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of weighted average lease term and weighted average discount rate | Dec. 31, 2022 | Jun. 30, 2022 |
Weighted average lease term: | ||
Operating leases | 3 years 1 month 2 days | 3 years 3 months 21 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 | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Schedule of lease expenses [Abstract] | |||
Operating lease expenses | ¥ 5,180 | $ 751 | ¥ 8,564 |
Short-term lease expenses | 1,551 | 225 | 4,474 |
Total | ¥ 6,731 | $ 976 | ¥ 13,038 |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of supplemental cash flow information related to leases ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating lease | ¥ 4,121 | $ 597 | ¥ 7,878 |
Supplement noncash information | |||
New operating lease liabilities arose from obtaining right-of-use assets | 2,975 | 431 | 25,362 |
Change on lease liabilities arose from modification on lease terms | (62) | (9) | |
Change on lease liabilities arose from early termination of operating leases | ¥ (8,248) | $ (1,196) | ¥ (9,848) |
Leases (Details) - Schedule o_5
Leases (Details) - Schedule of maturities of lease liabilities ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Schedule of maturities of lease liabilities [Abstract] | |||
2023 | ¥ 5,396 | $ 782 | |
2024 | 8,332 | 1,208 | |
2025 | 6,676 | 968 | |
2026 | 6,530 | 947 | |
Thereafter | 1,751 | 254 | |
Total remaining undiscounted lease payments | 28,685 | 4,159 | |
Less: Interest | 2,241 | 325 | |
Total present value of lease liabilities | 26,444 | 3,834 | |
Less: Current operating lease liabilities | 8,857 | 1,284 | ¥ 11,889 |
Non-current operating lease liabilities | ¥ 17,587 | $ 2,550 |
Investors' Deposit (Details)
Investors' Deposit (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
Statistical Disclosure for Banks [Abstract] | |
Uninvested cash balance | ¥ 16,434 |
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 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Schedule of Components of Other Payables and Accrued Expenses [Abstract] | |||
Payroll payable | ¥ 17,780 | $ 2,578 | ¥ 13,844 |
Accrued expenses | 3,203 | 464 | 3,924 |
Value-added tax recoverable | (416) | (60) | (700) |
Employee’s individual income tax | 459 | 67 | 407 |
Others | 1,503 | 217 | 1,970 |
Other payables and accrued expenses | ¥ 22,529 | $ 3,266 | ¥ 19,445 |
Sundry Income (Details) - Sched
Sundry Income (Details) - Schedule of components of sundry income ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Schedule of components of sundry income, net [Abstract] | |||
Government grants | ¥ 679 | $ 99 | ¥ 1,673 |
Others | 44 | 6 | 1 |
Total sundry income | ¥ 723 | $ 105 | ¥ 1,674 |
Income Taxes (Details)
Income Taxes (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 6 Months Ended | |
Mar. 21, 2018 | Dec. 31, 2022 | Jun. 30, 2022 | |
Income Taxes (Details) [Line Items] | |||
Income tax PRC, description | the relevant laws and regulations in the PRC, beginning from January 1, 2020, Puyi Bohui has been qualified for west development taxation preference and subject to an income tax rate of 15%. Puyi Zhongxiang is qualified for Shenzhen Qianhai modern services cooperation district entity tax preference and is subject to an income tax rate of 15%. Chongqing Fengyi and Puyi Consulting are qualified for west development taxation preference and are subject to an income tax rate of 15%. Dake has been 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 calendar year 2022, it is exempted for income tax for the six months ended December 31, 2022. Puyi FO and other PRC subsidiaries are subject to a standard 25% EIT. | ||
Total tax loss carry-forwards | ¥ 184,801 | ¥ 184,258 | |
Percentage of income tax rate | |||
Unrecognized tax benefits | ¥ 13,500 | ¥ 13,500 | |
Minimum [Member] | |||
Income Taxes (Details) [Line Items] | |||
Percentage of income tax rate | 25% | ||
Maximum [Member] | |||
Income Taxes (Details) [Line Items] | |||
Percentage of income tax rate | 100% | ||
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 | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Income Taxes (Details) - Schedule of components of the income tax provision [Line Items] | |||
Current | ¥ | ¥ 746 | ¥ 564 | |
Deferred | ¥ | (2,425) | (3,985) | |
Total income tax benefit | ¥ | ¥ (1,679) | ¥ (3,421) | |
US Dollar [Member] | |||
Income Taxes (Details) - Schedule of components of the income tax provision [Line Items] | |||
Current | $ | $ 108 | ||
Deferred | $ | (351) | ||
Total income tax benefit | $ | $ (243) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of components of the deferred income tax assets and liabilities ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
RMB [Member] | |||
Deferred tax assets: | |||
Tax loss carry forward | ¥ | ¥ 24,991 | ¥ 28,314 | |
Allowance for doubtful accounts, credit losses and impairment losses | ¥ | 1,723 | 1,723 | |
Other temporary book/tax differences | ¥ | 6,041 | ||
Subtotal | ¥ | 32,755 | 30,037 | |
Less: valuation allowances | ¥ | 6,353 | 6,059 | |
Total | ¥ | ¥ 26,403 | ¥ 23,978 | |
US Dollar [Member] | |||
Deferred tax assets: | |||
Tax loss carry forward | $ | $ 3,622 | ||
Allowance for doubtful accounts, credit losses and impairment losses | $ | 250 | ||
Other temporary book/tax differences | $ | 876 | ||
Subtotal | $ | 4,748 | ||
Less: valuation allowances | $ | 920 | ||
Total | $ | $ 3,828 |
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 | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
RMB [Member] | |||
Income Taxes (Details) - Schedule of reconciliation between the statutory tax rate to income before income taxes [Line Items] | |||
Income (loss) from operations before income taxes | ¥ | ¥ (33,133) | ¥ (42,665) | |
PRC income tax statutory rate | 25% | 25% | 25% |
Income tax expense (benefit) at statutory tax rate | ¥ | ¥ (8,283) | ¥ (10,666) | |
Preferential tax treatments | ¥ | 3,513 | 3,966 | |
Expenses not deductible for tax purposes | ¥ | 330 | 421 | |
Uncertain tax provision | ¥ | 500 | ||
Temporary book/tax differences | ¥ | 2,286 | ||
Reversal of previously-recognized DTA due to changes in applicable tax rate | ¥ | 768 | ||
Impact of different tax rates in other jurisdictions | ¥ | 48 | 141 | |
Others | ¥ | 133 | 197 | |
Valuation allowances | ¥ | 294 | 1,252 | |
Income tax expense (benefit) | ¥ | ¥ (1,679) | ¥ (3,421) | |
US Dollar [Member] | |||
Income Taxes (Details) - Schedule of reconciliation between the statutory tax rate to income before income taxes [Line Items] | |||
Income (loss) from operations before income taxes | $ | $ (4,804) | ||
PRC income tax statutory rate | 25% | 25% | |
Income tax expense (benefit) at statutory tax rate | $ | $ (1,201) | ||
Preferential tax treatments | $ | 509 | ||
Expenses not deductible for tax purposes | $ | 48 | ||
Uncertain tax provision | $ | |||
Temporary book/tax differences | $ | 332 | ||
Reversal of previously-recognized DTA due to changes in applicable tax rate | $ | |||
Impact of different tax rates in other jurisdictions | $ | 7 | ||
Others | $ | 19 | ||
Valuation allowances | $ | 43 | ||
Income tax expense (benefit) | $ | $ (243) |
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 | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator: | |||
Net loss (in Dollars and Yuan Renminbi) | ¥ (31,454) | $ (4,561) | ¥ (39,244) |
Denominator: | |||
Weighted average number of ordinary shares outstanding | 90,472,014 | 90,472,014 | 90,472,014 |
Basic net loss per ordinary share (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.348) | $ (0.05) | ¥ (0.434) |
Loss Per Share (Details) - Sc_2
Loss Per Share (Details) - Schedule of basic and diluted net income (loss) per ordinary share (Parentheticals) | 6 Months Ended | ||
Dec. 31, 2022 ¥ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 ¥ / shares | |
Schedule of basic and diluted net income loss per ordinary share [Abstract] | |||
Diluted net loss per ordinary share | (per share) | ¥ (0.348) | $ (0.050) | ¥ (0.434) |
Condensed Financial Statement_3
Condensed Financial Statements of the Company (Details) - Schedule of condensed statements of financial position - VIE [Member] ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 11,172 | $ 1,620 | ¥ 11,732 |
Amounts due from other subsidiaries | 80 | 12 | 77 |
Total current assets | 11,252 | 1,632 | 11,809 |
Investments in subsidiaries | 217,696 | 31,562 | 248,459 |
Total assets | 228,948 | 33,194 | 260,268 |
Current liabilities: | |||
Other payables and accrued expenses | 217 | ||
Total current liabilities | 217 | ||
Total liabilities | 217 | ||
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, 2022 and December 31, 2022) | 600 | 87 | 600 |
Additional paid-in capital | 224,694 | 32,578 | 224,694 |
Retained earnings | 3,696 | 535 | 35,150 |
Accumulated other comprehensive income | (42) | (6) | (393) |
Total equity | 228,948 | 33,194 | 260,051 |
Total liabilities and equity | ¥ 228,948 | $ 33,194 | ¥ 260,268 |
Condensed Financial Statement_4
Condensed Financial Statements of the Company (Details) - Schedule of condensed statements of financial position (Parentheticals) - VIE [Member] - $ / shares | Dec. 31, 2022 | Jun. 30, 2022 |
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) - VIE [Member] ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | |||
General and administrative expenses | ¥ (935) | $ (136) | ¥ (398) |
Other income, net | 245 | 36 | 18 |
Equity in loss of subsidiaries | (30,763) | (4,460) | (38,805) |
Loss before income taxes | (31,453) | (4,560) | (39,185) |
Income tax expense | (1) | (64) | |
Net loss | (31,454) | (4,560) | (39,249) |
Other comprehensive income (loss), net of tax: Foreign currency translation adjustments | 351 | 51 | (160) |
Total Comprehensive loss | ¥ (31,103) | $ (4,509) | ¥ (39,409) |
Related Party Transactions (Det
Related Party Transactions (Details) - Schedule of related parties with whom the group conducted significant transactions and relationship | 6 Months Ended |
Dec. 31, 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. |
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 | 6 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | ||
Insurance consulting service income accrued from Fanhua Lianxing [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other services | [1] | ¥ 6,497 | $ 942 | ¥ 3,312 |
Insurance consulting service income received from Fanhua Lianxing [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other services | [1] | 6,449 | 935 | 2,320 |
Trust consulting service income accrued from Fanhua Lianxing [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other services | [2] | 5,643 | 818 | |
Trust consulting service income received from Fanhua Lianxing [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other services | [2] | 54 | 8 | |
Promotion expense accrued and adjusted to Fanhua Yuntong [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling expense | [3] | (55) | (8) | 355 |
Promotion expense paid to Fanhua Yuntong [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling expense | [3] | ¥ 175 | $ 25 | ¥ 141 |
[1] Starting from January 2021, the Group has cooperated with Fanhua Lianxing to provide insurance consulting service. |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of amounts due from related parties ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 CNY (¥) |
Business Acquisition [Line Items] | |||
Total | ¥ 7,761 | $ 1,125 | ¥ 2,895 |
Total | (1,500) | ||
Total | (236) | (34) | (292) |
Fanhua Yuntong [Member] | |||
Business Acquisition [Line Items] | |||
Total | 7,761 | 1,125 | 2,895 |
Total | (1,500) | ||
Total | ¥ (236) | $ (34) | ¥ (292) |
Statutory Reserve (Details)
Statutory Reserve (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2022 | |
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 | ¥ 23,314 |