Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | SCIENJOY HOLDING CORPORATION |
Trading Symbol | SJ |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001753673 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38799 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | RM 1118, 11th Floor, Building 3, No. 99 Wangzhou Rd |
Entity Address, Address Line Two | Liangzhu St |
Entity Address, Address Line Three | Yuhang District |
Entity Address, City or Town | Hangzhou |
Entity Address, Postal Zip Code | 311113 |
Entity Address, Country | CN |
Title of 12(b) Security | Class A Ordinary shares, no par value |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 6732 |
Auditor Name | OneStop Assurance PAC |
Auditor Location | Singapore |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | RM 1118, 11th Floor, Building 3, No. 99 Wangzhou Rd |
Entity Address, Address Line Two | Liangzhu St |
Entity Address, Address Line Three | Yuhang District |
Entity Address, City or Town | Hangzhou |
Entity Address, Postal Zip Code | 311113 |
Entity Address, Country | CN |
Contact Personnel Name | Xiaowu He |
City Area Code | (86) |
Local Phone Number | 0571 8858 6668 |
Contact Personnel Email Address | xiaowu.he@scienjoy.com |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 38,113,879 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 2,925,058 |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 205,465 | $ 28,939 | ¥ 175,292 |
Accounts receivable, net | 260,979 | 36,758 | 316,657 |
Prepaid expenses and other current assets | 78,653 | 11,078 | 115,170 |
Amounts due from related parties | 355 | 50 | 1,115 |
Investment in marketable security | 31,525 | 4,440 | 40,548 |
Total current assets | 576,977 | 81,265 | 648,782 |
Property and equipment, net | 2,193 | 309 | 2,735 |
Intangible assets, net | 412,154 | 58,051 | 419,055 |
Goodwill | 182,467 | 25,700 | 172,781 |
Long term investment | 254,411 | 35,833 | 234,176 |
Long term deposits and other assets | 726 | 102 | 953 |
Right-of-use assets-operating lease | 12,157 | 1,712 | 19,209 |
Deferred tax assets | 7,379 | 1,039 | 4,337 |
Total non-current assets | 871,487 | 122,746 | 853,246 |
TOTAL ASSETS | 1,448,464 | 204,011 | 1,502,028 |
Current liabilities | |||
Bank loan | 5,000 | ||
Accounts payable | 73,183 | 10,306 | 116,251 |
Accrued salary and employee benefits | 14,763 | 2,079 | 12,428 |
Accrued expenses and other current liabilities | 27,610 | 3,889 | 13,264 |
Contingent consideration – earn-out liability | 4,336 | ||
Warrant liabilities | 166 | ||
Income tax payable | 13,005 | 1,832 | 13,531 |
Lease liabilities-operating lease -current | 7,974 | 1,123 | 7,174 |
Deferred revenue | 97,586 | 13,745 | 93,383 |
Total current liabilities | 234,121 | 32,974 | 265,533 |
Non-current liabilities | |||
Deferred tax liabilities | 59,818 | 8,425 | 61,236 |
Lease liabilities-operating lease -non-current | 4,798 | 676 | 12,773 |
Total non-current liabilities | 64,616 | 9,101 | 74,009 |
TOTAL LIABILITIES | 298,737 | 42,075 | 339,542 |
Commitments and contingencies | |||
EQUITY | |||
Shares to be issued | 30,777 | 4,335 | 33,923 |
Treasury stocks | (19,216) | (2,707) | (16,482) |
Statutory reserves | 44,698 | 6,296 | 39,208 |
Retained earnings | 628,821 | 88,568 | 665,099 |
Accumulated other comprehensive income | 17,965 | 2,530 | 18,070 |
Total shareholders’ equity | 1,150,564 | 162,054 | 1,160,594 |
Non-controlling interests | (837) | (118) | 1,892 |
Total equity | 1,149,727 | 161,936 | 1,162,486 |
TOTAL LIABILITIES AND EQUITY | 1,448,464 | 204,011 | 1,502,028 |
Class A Ordinary Shares | |||
EQUITY | |||
Ordinary shares value | 423,623 | 59,666 | 396,880 |
Class B Ordinary Shares | |||
EQUITY | |||
Ordinary shares value | ¥ 23,896 | $ 3,366 | ¥ 23,896 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2023 ¥ / shares shares | Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2023 $ / shares shares | |
Class A Ordinary Shares | |||
Ordinary share, par value (in Dollars per share and Yuan Renminbi per share) | (per share) | |||
Ordinary shares, issued | 38,113,879 | 36,684,668 | 38,113,879 |
Ordinary shares, outstanding | 38,113,879 | 36,684,668 | 38,113,879 |
Ordinary shares, authorized | Unlimited | Unlimited | |
Class B Ordinary Shares | |||
Ordinary share, par value (in Dollars per share and Yuan Renminbi per share) | (per share) | |||
Ordinary shares, issued | 2,925,058 | 2,925,058 | 2,925,058 |
Ordinary shares, outstanding | 2,925,058 | 2,925,058 | 2,925,058 |
Ordinary shares, authorized | Unlimited | Unlimited |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | ||
Revenue | ¥ 1,464,871 | $ 206,323 | ¥ 1,953,257 | ¥ 1,669,358 | |
Cost of revenues | (1,272,145) | (179,178) | (1,670,068) | (1,364,902) | |
Gross profit | 192,726 | 27,145 | 283,189 | 304,456 | |
Sales and marketing expenses | (1,355) | (191) | (2,127) | (4,807) | |
General and administrative expenses | (75,582) | (10,646) | (61,005) | (65,233) | |
Research and development expenses | (75,116) | (10,580) | (67,538) | (70,039) | |
Recovery of (provision for) doubtful accounts | (17,865) | (2,516) | (2,739) | 1,592 | |
Income from operations | 22,808 | 3,212 | 149,780 | 165,969 | |
Change in fair value of contingent consideration | (5,624) | (792) | 13,071 | (33,584) | |
Change in fair value of warrant liabilities | 170 | 24 | 10,776 | 16,421 | |
Change in fair value of investment | (9,023) | (1,271) | 1,760 | 25,831 | |
Investments income (loss) | (31,328) | (4,412) | 25,449 | (2,998) | |
Impairment of long-term investments | (11,800) | (1,662) | |||
Interest income, net | 2,739 | 386 | 2,506 | 3,962 | |
Other income (loss), net | 7,449 | 1,049 | 11,443 | (90) | |
Foreign exchange gain (loss), net | (1,887) | (266) | (1,493) | 105 | |
Income (loss) before income taxes | (26,496) | (3,732) | 213,292 | 175,616 | |
Income tax expense | (8,480) | (1,194) | (18,067) | (5,604) | |
Net income (loss) | (34,976) | (4,926) | 195,225 | 170,012 | |
Less: net income (loss) attributable to noncontrolling interest | (4,188) | (590) | 1,892 | ||
Net income (loss) attributable to the Company’s shareholders | (30,788) | (4,336) | 193,333 | 170,012 | |
Other comprehensive income (loss): | |||||
Other comprehensive income (loss) - foreign currency translation adjustment | (105) | (15) | 955 | 2,313 | |
Comprehensive income (loss) | (35,081) | (4,941) | 196,180 | 172,325 | |
Less: comprehensive income (loss) attributable to non-controlling interests | (4,188) | (590) | 1,892 | ||
Comprehensive income (loss) attributable to the Company’s shareholders | ¥ (30,893) | $ (4,351) | ¥ 194,288 | ¥ 172,325 | |
Weighted average number of shares* | |||||
Basic (in Shares) | [1] | 40,649,414 | 40,649,414 | 39,263,147 | 30,842,183 |
Diluted (in Shares) | [1] | 40,649,414 | 40,649,414 | 39,263,147 | 30,842,183 |
Earnings (loss) per share | |||||
Basic (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.76) | $ (0.11) | ¥ 4.92 | ¥ 5.51 | |
Diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.76) | $ (0.11) | ¥ 4.92 | ¥ 5.51 | |
Live streaming - consumable virtual items revenue | |||||
Revenue | ¥ 1,420,258 | $ 200,040 | ¥ 1,886,179 | ¥ 1,617,056 | |
Live streaming - time based virtual item revenue | |||||
Revenue | 25,004 | 3,522 | 27,683 | 32,905 | |
Technical services and others | |||||
Revenue | ¥ 19,609 | $ 2,761 | ¥ 39,395 | ¥ 19,397 | |
[1] Ordinary shares and share data have been retroactively restated to give effect to the reverse recapitalization. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity ¥ in Thousands, $ in Thousands | Ordinary shares CNY (¥) shares | Ordinary shares USD ($) shares | Treasury stocks CNY (¥) shares | Treasury stocks USD ($) shares | Shares to be issued CNY (¥) | Shares to be issued USD ($) | Statutory reserves CNY (¥) | Statutory reserves USD ($) | Retained earnings CNY (¥) | Retained earnings USD ($) | Accumulated other comprehensive income CNY (¥) | Accumulated other comprehensive income USD ($) | Non-controlling interests CNY (¥) | Non-controlling interests USD ($) | CNY (¥) shares | USD ($) shares | |||
Balance (in Dollars) | ¥ (96,349) | ¥ 200,100 | ¥ 18,352 | ¥ 322,610 | ¥ 14,802 | ¥ 459,515 | |||||||||||||
Balance (in Shares) | shares | [1] | 27,037,302 | 27,037,302 | ||||||||||||||||
Balance at Dec. 31, 2020 | ¥ (96,349) | 200,100 | 18,352 | 322,610 | 14,802 | 459,515 | |||||||||||||
Balance (in Shares) at Dec. 31, 2020 | shares | [1] | 27,037,302 | 27,037,302 | ||||||||||||||||
Net income (loss) | 170,012 | 170,012 | |||||||||||||||||
Issuance of shares for achievement of earnout target | ¥ 200,100 | (200,100) | |||||||||||||||||
Issuance of shares for achievement of earnout target (in Shares) | shares | [1] | 3,540,960 | 3,540,960 | ||||||||||||||||
Issuance shares for private placement | ¥ 4,177 | 4,177 | |||||||||||||||||
Issuance shares for private placement (in Shares) | shares | [1] | 108,230 | 108,230 | ||||||||||||||||
Exercise of warrants | ¥ 4,340 | 4,340 | |||||||||||||||||
Exercise of warrants (in Shares) | shares | [1] | 48,149 | 48,149 | ||||||||||||||||
Exercise of Unit Purchase Option | ¥ 9,112 | ¥ 9,112 | |||||||||||||||||
Exercise of Unit Purchase Option (in Shares) | shares | 110,000 | [1] | 110,000 | [1] | 96,300 | 96,300 | |||||||||||||
Share base compensation | ¥ 31,857 | ¥ 31,857 | |||||||||||||||||
Shares to be issued for achievement of earnout target | 128,119 | 128,119 | |||||||||||||||||
Appropriation to statutory reserves | 13,423 | (13,423) | |||||||||||||||||
Foreign currency translation adjustments | 2,313 | 2,313 | |||||||||||||||||
Balance at Dec. 31, 2021 | ¥ 153,237 | 128,119 | 31,775 | 479,199 | 17,115 | 809,445 | |||||||||||||
Balance (in Shares) at Dec. 31, 2021 | shares | [1] | 30,844,641 | 30,844,641 | ||||||||||||||||
Balance (in Dollars) | ¥ 153,237 | 128,119 | 31,775 | 479,199 | 17,115 | 809,445 | |||||||||||||
Balance (in Shares) | shares | [1] | 30,844,641 | 30,844,641 | ||||||||||||||||
Net income (loss) | 193,333 | 1,892 | 195,225 | ||||||||||||||||
Issuance of shares for achievement of earnout target | ¥ 128,119 | (128,119) | |||||||||||||||||
Issuance of shares for achievement of earnout target (in Shares) | shares | [1] | 3,540,960 | 3,540,960 | ||||||||||||||||
Shares issued for Weiliantong Acquisition | ¥ 127,466 | 127,466 | |||||||||||||||||
Shares issued for Weiliantong Acquisition (in Shares) | shares | [1] | 3,898,511 | 3,898,511 | ||||||||||||||||
Share base compensation | ¥ 11,954 | 11,954 | |||||||||||||||||
Share base compensation (in Shares) | shares | [1] | 1,325,614 | 1,325,614 | ||||||||||||||||
Shares to be issued for achievement of earnout target | 13,106 | 13,106 | |||||||||||||||||
Shares to be issued for Weiliantong Acquisition | 20,817 | 20,817 | |||||||||||||||||
Treasury stocks | ¥ (16,482) | (16,482) | |||||||||||||||||
Treasury stocks (in Shares) | shares | [1] | (794,120) | (794,120) | ||||||||||||||||
Appropriation to statutory reserves | 7,433 | (7,433) | |||||||||||||||||
Foreign currency translation adjustments | 955 | 955 | |||||||||||||||||
Balance at Dec. 31, 2022 | ¥ 420,776 | ¥ (16,482) | 33,923 | 39,208 | 665,099 | 18,070 | 1,892 | 1,162,486 | |||||||||||
Balance (in Shares) at Dec. 31, 2022 | shares | [1] | 39,609,726 | 39,609,726 | (794,120) | (794,120) | ||||||||||||||
Balance (in Dollars) | ¥ 420,776 | ¥ (16,482) | 33,923 | 39,208 | 665,099 | 18,070 | 1,892 | 1,162,486 | |||||||||||
Balance (in Shares) | shares | [1] | 39,609,726 | 39,609,726 | (794,120) | (794,120) | ||||||||||||||
Net income (loss) | (30,788) | (4,188) | (34,976) | $ (4,926) | |||||||||||||||
Issuance of shares for achievement of earnout target | ¥ 13,106 | (13,106) | |||||||||||||||||
Issuance of shares for achievement of earnout target (in Shares) | shares | [1] | 995,118 | 995,118 | ||||||||||||||||
Share base compensation | ¥ 13,637 | 13,637 | |||||||||||||||||
Share base compensation (in Shares) | shares | [1] | 434,093 | 434,093 | ||||||||||||||||
Shares to be issued for achievement of earnout target | 9,960 | 9,960 | |||||||||||||||||
Acquisition of SJ Verse Global Media LLC | (288) | (288) | |||||||||||||||||
Capital contribution by non-controlling shareholders | 1,751 | 1,751 | |||||||||||||||||
Treasury stocks | ¥ (2,734) | (2,734) | |||||||||||||||||
Treasury stocks (in Shares) | shares | [1] | (119,725) | (119,725) | ||||||||||||||||
Appropriation to statutory reserves | 5,490 | (5,490) | |||||||||||||||||
Foreign currency translation adjustments | (105) | (4) | (109) | ||||||||||||||||
Balance at Dec. 31, 2023 | ¥ 447,519 | $ 63,032 | ¥ (19,216) | $ (2,707) | 30,777 | $ 4,335 | 44,698 | $ 6,296 | 628,821 | $ 88,568 | 17,965 | $ 2,530 | (837) | $ (118) | 1,149,727 | 161,936 | |||
Balance (in Shares) at Dec. 31, 2023 | shares | [1] | 41,038,937 | 41,038,937 | (913,845) | (913,845) | ||||||||||||||
Balance (in Dollars) | ¥ 447,519 | $ 63,032 | ¥ (19,216) | $ (2,707) | ¥ 30,777 | $ 4,335 | ¥ 44,698 | $ 6,296 | ¥ 628,821 | $ 88,568 | ¥ 17,965 | $ 2,530 | ¥ (837) | $ (118) | ¥ 1,149,727 | $ 161,936 | |||
Balance (in Shares) | shares | [1] | 41,038,937 | 41,038,937 | (913,845) | (913,845) | ||||||||||||||
[1] Ordinary shares and share data have been retroactively restated to give effect to the reverse recapitalization. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ (34,976) | $ (4,926) | ¥ 195,225 | ¥ 170,012 |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation of property and equipment | 1,237 | 174 | 1,149 | 745 |
Amortization of intangible assets | 6,964 | 981 | 7,038 | 4,090 |
Loss from disposal of property and equipment | 5 | 1 | ||
Provision (recovery) for doubtful accounts | 17,865 | 2,516 | 2,739 | (1,592) |
Deferred tax expenses (benefit) | (4,460) | (628) | (1,402) | 319 |
Change in fair value of contingent consideration | 5,624 | 792 | (13,071) | 33,584 |
Change in fair value of warrant liabilities | (170) | (24) | (10,776) | (16,421) |
Change in fair value of investment | 9,023 | 1,271 | (1,760) | (25,831) |
Investments (income) loss | 31,328 | 4,412 | (25,449) | 2,998 |
Impairment of long-term investments | 11,800 | 1,662 | ||
Share based compensation | 13,637 | 1,921 | 11,954 | 31,857 |
Amortization of right-of-use assets-operating lease | 7,052 | 993 | 6,265 | |
Changes in operating assets and liabilities | ||||
Accounts receivable | 54,148 | 7,627 | (112,058) | 23,499 |
Prepaid expense and other current assets | 20,284 | 2,857 | 64,180 | (151,657) |
Long term deposits and other assets | 227 | 32 | 335 | 230 |
Accounts payable | (43,065) | (6,066) | 25,503 | 18,712 |
Deferred revenue | 4,203 | 592 | 22,397 | 15,838 |
Accrued salary and employee benefits | 2,335 | 329 | (14,109) | 6,392 |
Accrued expenses and other current liabilities | 7,334 | 1,033 | (100,331) | 3,825 |
Lease liabilities | (7,175) | (1,011) | (5,527) | |
Income tax payable | (526) | (74) | 5,249 | (299) |
Net cash provided by operating activities | 102,694 | 14,464 | 57,551 | 116,301 |
Cash flows from investing activities | ||||
Cash acquired from acquisition | 212 | 30 | 9,707 | |
Payment to acquisition | (3,546) | (499) | (13,800) | |
Payment for long term investments | (63,363) | (8,924) | (107,000) | (113,735) |
Purchase of property and equipment and intangible assets | (493) | (69) | (2,153) | (1,389) |
Net cash used in investing activities | (67,190) | (9,462) | (113,246) | (115,124) |
Cash flows from financing activities | ||||
Net proceeds from private placement | 15,284 | |||
Capital contribution by non-controlling shareholders | 1,751 | 247 | ||
Proceeds from related parties | 760 | 107 | ||
Proceeds from bank loan | 5,000 | 704 | 5,000 | |
Repayment for bank loan | (10,000) | (1,408) | ||
Share repurchase | (2,734) | (385) | (16,482) | |
Net cash provided by (used in) financing activities | (5,223) | (735) | (11,482) | 15,284 |
Effect of foreign exchange rate changes on cash | (108) | (17) | 1,522 | (282) |
Net increase (decrease) in cash and cash equivalents | 30,173 | 4,250 | (65,655) | 16,179 |
Cash and cash equivalents at beginning of the year | 175,292 | 24,689 | 240,947 | 224,768 |
Cash and cash equivalents at end of the year | 205,465 | 28,939 | 175,292 | 240,947 |
Supplemental disclosures of cash flow information: | ||||
Income taxes paid | 13,447 | 1,894 | 9,076 | (9,502) |
Supplemental non-cash investing and financing information: | ||||
Conversion of convertible notes and rights | 13,452 | |||
Recognition of contingent consideration | 19,875 | |||
Issuance of Class A ordinary shares for acquisition | 127,466 | |||
Issuance of Class A ordinary shares for achievement of earnout target | 13,106 | 1,846 | 117,264 | 200,100 |
Issuance of Class B ordinary shares for achievement of earnout target | 10,855 | |||
Shares to be issued for achievement of earnout target | 9,960 | 1,403 | 13,106 | 128,119 |
Shares to be issued for Weiliantong Acquisition | 20,817 | |||
Right-of-assets obtained in exchange for operating lease obligations | 25,474 | |||
Non-controlling interests from Acquisition of SJ Verse Global Media LLC | ¥ (288) | $ (41) |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Scienjoy Holding Corporation (the “Company” or “Scienjoy”) through its subsidiaries, and variable interest entities(“VIE”) and its subsidiaries (collectively the “Group”) are principally engaged in operating its own live streaming platforms in the People’s Republic of China (the “PRC”), which enable users to view and interact with broadcasters through online chat, virtual items and playing games. The primary theme of the Company’s platform is entertainment live streaming. (a) Reverse recapitalization On May 7, 2020, the Company, formerly known as Wealthbridge Acquisition Limited (“Wealthbridge”), consummated the transactions (the “SPAC Transaction”) contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) dated as of October 28, 2019, pursuant to which the Company acquired 100% of the issued and outstanding equity interests of Scienjoy Inc. and changed its name to Scienjoy Holding Corporation. Upon the closing of the Transaction, the Company acquired 100% of the issued and outstanding equity interests of Scienjoy Inc. in exchange for approximately in aggregated of 19.4 million Class A ordinary shares, including 3 million Class A ordinary shares as part of earn-out consideration that was issued to the previous owners of Scienjoy Inc. (Note -2). Scienjoy Inc. was determined to be the accounting acquirer given that the original shareholders of Scienjoy Inc. effectively controlled the combined entity after the Transaction. The Transaction is not a business combination because Wealthbridge was not a business. The transaction is accounted for as a reverse recapitalization, which is equivalent to the issuance of shares by Scienjoy Inc. for the net monetary assets of Wealthbridge, accompanied by a recapitalization. Scienjoy Inc. is determined as the predecessor, and the historical financial statements of Scienjoy Inc. became the Company’s historical financial statements, with retrospective adjustments to give effect of the reverse recapitalization. The share and per share data is retrospectively restated to give effect to the reverse recapitalization. (b) Reorganization On January 1, 2018, Tongfang Investment Fund Series SPC (“TF”) completed the acquisition of a 65% equity interest in Sixiang Times (Beijing) Technology Co., Ltd (“Sixiang Times”) from NQ Mobile Inc. Through the acquisition of Sixiang Times, TF acquired a controlling position in Holgus Sixiang Information Technology Co., Ltd (“Holgus X”), Kashgar Sixiang Times Internet Technology Co., Ltd (“Kashgar Times”), Beijing Sixiang Shiguang Technology Co., Ltd (“SG”), Hai Xiu (Beijing) Technology Co., Ltd (“HX”) and Beijing Le Hai Technology Co., Ltd (“LH”). On May 18, 2017, Scienjoy Inc. established its wholly owned subsidiary in Hong Kong, Scienjoy International Limited (“Scienjoy HK”), as a holding company holding all of the outstanding shares of Sixiang Wuxian (Beijing) Technology Co., Ltd (“WXBJ”) which was established in PRC on October 17, 2017 under the laws of the People’s Republic of China as a holding company holding all of the equity interest of Sixiang Zhihui (Beijing) Technology Co., Ltd. (“ZH”), which was incorporated on July 5, 2018. Scienjoy Inc. established ZH (through WXBJ), as a holding company for purpose of holding all of the outstanding equity interest of Holgus X and Kashgar Times, as follows: (i) On July 18, 2018, Sixiang Times and ZH executed an equity transfer agreement. Pursuant to the agreement, 100% equity interest in Holgus X was transferred to ZH. (ii) On July 24, 2018, Sixiang Times and ZH executed an equity transfer agreement. Pursuant to the agreement, 100% equity interest in Kashgar Times was transferred to ZH. In consideration of the transfer, the Company paid RMB10,000 to the former shareholders of Kashgar Times. On November 16, 2018, Sixiang Times and other minority shareholders respectively entered into certain equity transfer agreements with Sixiang Huizhi (Beijing) Technology Culture Co., Ltd. (“HZ”) and Tianjin Sihui Peiying Technology Co., Ltd. (“SY”), and transfer 100% equity interest in SG to HZ, and transfer 100% equity interest in HX and LH to HZ and SY accordingly. Both HZ and SY were ultimately controlled by TF. On January 28, 2019, HZ and SY executed equity transfer agreement with Zhihui Qiyuan (Beijing) Technology Co., Ltd. (“QY”). Pursuant to the agreement, 100% equity interest in SG, HX and LH were transferred to QY which is ultimately controlled by TF. In consideration of the transfer, Scienjoy Inc. paid RMB 32,000 to the former shareholders of SG, HX and LH. On January 29, 2019, Scienjoy Inc., through its wholly owned subsidiary WXBJ, entered into a series of contractual arrangements (VIE Agreements) with QY and its respective shareholders, and in substance controlled all equity shares, risk and reward of SG, HX and LH through QY accordingly as a primary beneficiary of QY. On January 29, 2019, Scienjoy Inc. completed its reorganization of entities under the common control of the founders. Scienjoy, Scienjoy HK, WXBJ and ZH were established as holding Companies. WXBJ holds 100% of equity interests of ZH which holds 100% of equity interest in Kashgar Times and Holgus X. WXBJ is the primary beneficiary of QY which holds 100% equity interest in SG, HX and LH. These transactions were between entities under common control, and therefore accounted for in a manner similar to the pooling of interest method. Under the pooling-of-interests method, combination between two businesses under common control is accounted for at carrying amounts with retrospective adjustment of prior period financial statements, and the equity accounts of the combining entities are combined and the difference between the consideration paid and the net assets acquired is reflected as an equity transaction (i.e., distribution to parent company). As opposed to the purchase method of accounting, no intangible assets are recognized in the transaction, and no goodwill is recognized as a result of the combination. (c) Recent developments On July 25, 2023, the Company formed a wholly owned subsidiary Scienjoy Pte. Ltd.in Singapore. Scienjoy Pte. Ltd is engaged in developing business in Singapore and other international markets. On September 18, 2023, the Company, through entrust agreement with Mr Xiaowu He, Chief Executive Officer and Chairman of the Board, formed a 51% owned subsidiary Scienjoy Verse Tech Ltd (“Scienjoy Verse”) in Dubai and its wholly owned subsidiary Scienjoy Meta Technology LLC to provide a non-stop elegant metaverse lifestyle platform for users globally. On October 7, 2023, Scienjoy Verse entered into a share acquisition agreement with a third party to purchase 90% equity interests in SJ Verse Global Media LLC (formerly as “Nujoom Almashareq Media L.L.C”). The transaction was completed on October 7, 2023. (d) Organization Subsidiaries of the Company and VIEs where the Company is the primary beneficiary include the following: Subsidiaries Date of Place of Percentage of Principal Scienjoy Inc. February 23, 2017 Cayman Islands 100% Holding Company Scienjoy Pte. Ltd. (“Scienjoy SG”) July 25, 2023 Singapore 100% Holding Company Scienjoy International Limited (“Scienjoy HK”) May 18, 2017 Hong Kong 100% Holding Company Scienjoy BeeLive Limited (formerly known as Sciscape International Limited, “SIL”) December 18, 2017 Hong Kong 100% Live streaming platform Golden Shield Enterprises Limited (“Golden Shield”) September 28, 2021 British Virgin Islands 100% Holding Company Scienjoy Verse Tech Ltd (“Scienjoy Verse”) (a 51% owned subsidiary of Scienjoy SG through entrust agreement between Scienjoy SG and Mr Xiaowu He, Chief Executive Officer and Chairman of the Board) September 18, 2023 Dubai 51% Holding Company Scienjoy Meta Technology LLC (“Scienjoy Meta”) (a wholly owned subsidiary of Scienjoy Verse) October 3, 2023 Dubai 51% Metaverse business SJ Verse Global Media LLC (“SJ Verse”) (a 90% owned subsidiary of Scienjoy Verse) May 20, 2020 Dubai 45.9% Multi-channel network business Sixiang Wuxian (Beijing) Technology Co., Ltd. (“WXBJ”) (a wholly owned subsidiary of Scienjoy HK) October 17, 2017 The PRC 100% Holding Company Sixiang Zhihui (Beijing) Technology Co., Ltd. (“ZH”) (a wholly owned subsidiary of WXBJ) July 5, 2018 The PRC 100% Holding Company Sixiang Yingyue (Shanghai) Technology Co., Ltd(“SXYY”) (a wholly owned subsidiary of WXBJ) June 30, 2022 The PRC 100% Information technology Holgus Sixiang Information Technology Co., Ltd. (“Holgus X”) (a wholly owned subsidiary of ZH) May 9, 2017 The PRC 100% Live streaming platform Kashgar Sixiang Times Internet Technology Co., Ltd. (“Kashgar Times”) (a wholly owned subsidiary of ZH) March 2, 2016 The PRC 100% Live streaming platform Kashgar Sixiang Lehong Information Technology Co., Ltd (“Kashgar Lehong”) (a wholly owned subsidiary of ZH) July 23, 2020 The PRC 100% Information technology Holgus Sixiang Haohan Internet Technology Co., Ltd. (“Holgus H”) (a wholly owned subsidiary of ZH) December 11, 2020 The PRC 100% Information technology Sixiang ZhiHui (Hainan) Technology Co., Ltd (“ZHHN”) (a wholly owned subsidiary of ZH) December 23, 2020 The PRC 100% Live streaming platform Sixiang Wuxian (Zhejiang) Culture Technology Co., Ltd (“WXZJ”) (a wholly owned subsidiary of Scienjoy HK) April 28, 2022 The PRC 100% Information technology Sixiang Zhihui (Zhejiang) Culture Technology Co., Ltd (“ZHZJ”) (a wholly owned subsidiary of WXZJ) January 4, 2022 The PRC 100% Information technology VIEs Zhihui Qiyuan (Beijing) Technology Co., Ltd. (“QY”) (Controlled through contractual agreements by WXBJ) January 22, 2019 The PRC 100% Holding Company Beijing Sixiang Shiguang Technology Co., Ltd. (“SG”) (a wholly owned subsidiary of QY) October 28, 2011 The PRC 100% Live streaming platform Hai Xiu (Beijing) Technology Co., Ltd. (“HX”) (a wholly owned subsidiary of QY) April 18, 2016 The PRC 100% Live streaming platform Beijing Le Hai Technology Co., Ltd. (“LH”) (a wholly owned subsidiary of QY) June 16, 2015 The PRC 100% Live streaming platform Sixiang Mifeng (Tianjin) Technology Co., Ltd (“DF”, formerly known as Tianjin Guangju Dingfei Technology Co., Ltd) (a wholly owned subsidiary of QY) August 8, 2016 The PRC 100% Live streaming platform Changxiang Infinite Technology (Beijing) Co., Ltd. (“CX”) (a wholly owned subsidiary of DF) September 22, 2016 The PRC 100% Live streaming platform Zhihui QiYuan (Hainan) Investment Co., Ltd (“QYHN”) (a wholly owned subsidiary of QY) March 2, 2021 The PRC 100% Live streaming platform Huayu Hefeng (Qingdao) Technology Co., Ltd (“HYHF”) (a wholly owned subsidiary of SG) September 29, 2021 The PRC 100% Live streaming platform Beijing Weiliantong Technology Co., Ltd.(“WLT”) (a wholly owned subsidiary of QY) July 28, 2015 The PRC 100% Live streaming platform Chuangda Zhihui (Beijing) Technology Co., Ltd.(“CDZH”) (a wholly owned subsidiary of SG) November 30, 2015 The PRC 100% Live streaming platform Beijing Huayi Dongchen Technology Co., Ltd. (“HYDC”) (a wholly owned subsidiary of CDZH) February 6, 2015 The PRC 100% Live streaming platform Hongcheng Huiying (Zhejiang)Technology Industry Development Co., Ltd(“HCHY”) (a 51% owned subsidiary of QYHN) February 15, 2022 The PRC 51% Live streaming platform Sixiang Qiyuan (Hangzhou) Culture Technology Co., Ltd (“QYHZ”) (Controlled through contractual agreements by WXZJ) March 30, 2022 The PRC 100% Holding Company Xiuli (Zhejiang) Culture Technology Co., Ltd (“XLZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform Leku (Zhejiang) Culture Technology Co., Ltd (“LKZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform Haifan (Zhejiang) Culture Technology Co., Ltd (“HFZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform Xiangfeng (Zhejiang) Culture Technology Co., Ltd (“XFZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform Hongren (Zhejiang) Culture Technology Co., Ltd (“HRZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform On January 29, 2019, the Company completed its reorganization of entities under the common control of the founders. Scienjoy, Scienjoy HK, WXBJ and ZH were established as holding Companies. WXBJ holds 100% of equity interests of ZH which holds 100% of equity interest in Kashgar Times and Holgus X. WXBJ is the primary beneficiary of QY which holds 100% equity interest in SG, HX and LH (collectively “QY VIEs”). All of these entities included in the Company are under common control, which results in the consolidation of QY and ZH which have been accounted for as a reorganization of entities under common control at carry value. The consolidated financial statements are prepared on the basis as if the reorganization became effective as of the beginning of the first period presented in the accompanying consolidated financial statements of the Company. Contracts between the Company and the QY VIEs Foreign ownership of Internet-based businesses, including distribution of online information (such as game content provider), is subject to restrictions under current PRC laws, regulations, and other applicable laws and regulations. The Company is a Cayman Island company and WXBJ and WXZJ (its PRC subsidiaries) are considered foreign invested enterprises. To comply with these regulations, the Company operates the live streaming platforms through SG, HX and LH in PRC (its consolidated VIE). As such, QY is controlled through contractual arrangements in lieu of direct equity ownership by the Company or any of its subsidiaries. Such contractual arrangements consist of a series of three agreements and a shareholder power of attorney (collectively the “Contractual Arrangements”, which were signed on January 29, 2019). The following is a summary of the various VIE agreements: Exclusive Option Agreements Pursuant to the exclusive option agreement (including its amendment or supplementary agreements, if any, the “Exclusive Option Agreement”) amongst WXBJ, QY and the nominee shareholders who collectively owned all of QY, the nominee shareholders irrevocably granted WXBJ or its designated party, an exclusive option to purchase all or part of the equity interests held by the nominee shareholders in QY, when and to the extent permitted under PRC law, at an amount equal to the lowest permissible purchase price as set by PRC law. QY cannot declare any profit distributions, or create any encumbrances in any form without the prior written consent of WXBJ. The nominee shareholders must remit in full any funds received from QY to WXBJ, in the event any distributions are made by the VIE pursuant to any written consents of WXBJ. The Exclusive Option Agreement shall remain effective for twenty one one Exclusive Business Cooperation Agreements Pursuant to the exclusive business cooperation agreement (including its amendment or supplementary agreements, if any, the “Exclusive Business Cooperation Agreement”) between WXBJ and the VIE, WXBJ is to provide exclusive business support, technical and consulting services related to all technologies needed for its business in return for fees that equals to all of the consolidated net income after offsetting previous year’s loss (if any) of SG, HX and LH. The service fees may be adjusted by WXBJ based on the following factors: ● complexity and difficulty of the services pursuant to the business cooperation agreement to the VIE during the month (the “Monthly Services”) ● the number of WXBJ’s employees who provided the Monthly Services and the qualifications of the employees; ● the number of hours WXBJ’s employees spent to provide the Monthly Services; ● nature and value of the Monthly Services; ● market reference price; and ● the VIE’ operating conditions for the month. The term of the Exclusive Business Cooperation Agreement is twenty one one Power of Attorney Agreements The nominee shareholders entered into the power of attorney agreement (including its amendment or supplementary agreements, if any, the “Power of Attorney Agreement”) whereby they granted an irrevocable proxy of the voting rights underlying their respective equity interests in the VIE to WXBJ, which includes, but are not limited to, all the shareholders’ rights and voting rights empowered to the nominee shareholders by the PRC company law and the VIE’s Article of Association. The power of attorney remains irrevocable and continuously valid from the date of execution so long as each shareholder remains as a shareholder of QY. Share Pledge Agreements Pursuant to the share pledge agreement (including its amendment or supplementary agreements, if any, the “Share Pledge Agreement”) between WXBJ, QY and the nominee shareholders, the nominee shareholders have pledged all their equity interests in the VIE to guarantee the performance of the VIE’ obligations under the Exclusive Option Agreement, Exclusive Business Cooperation Agreement and Power of Attorney Agreement. If the VIE breaches their respective contractual obligations under those agreements, WXBJ, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. The nominee shareholders agreed not to transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their equity interests in the VIE without the prior written consent of WXBJ. The Share Pledge Agreement shall be continuously valid until all the its obligations under the VIE Agreements have been fulfilled, or the VIE Agreements are terminated, or the secured debts has been fully executed. Based on the foregoing contractual arrangements, which grant WXBJ effective control of QY and its subsidiaries and obligate WXBJ to absorb all of the risk of loss from their activities and enable WXBJ to receive all of their expected residual returns, the Company accounts for QY as a VIE. Accordingly, the Company consolidates the accounts of QY for the periods presented herein, in accordance with Regulation S-X-3A-02 promulgated by the Securities Exchange Commission (“SEC”) and Accounting Standards Codification (“ASC”) 810-10, Consolidation. Contractual Arrangements among WXZJ, QYHZ, and the Shareholders of QYHZ. On June 1, 2022, the Company through its wholly-owned subsidiary, Sixiang Infinite (Zhejiang) Culture Technology Co., Ltd. (WXZJ), entered into a series of contractual arrangements with QYHZ (Hangzhou) Culture Technology Co., Ltd. (“QYHZ”) and its shareholders, thereby in substance obtained control over all equity shares, risks and economic benefits of Xiuli (Zhejiang) Culture Technology Co., Ltd., Leku (Zhejiang) Culture Technology Co., Ltd., Haifan (Zhejiang) Culture Technology Co., Ltd., Xiangfeng (Zhejiang) Culture Technology Co., Ltd. and Hongren (Zhejiang) Culture Technology Co., Ltd. The Company will commence its operations in Hangzhou after effecting the agreements under such contractual arrangements (the “VIE Agreements”) as described below. The Company intends to integrate its supply chain resources, local resources, and geographical advantages to achieve rapid growth in livestreaming commerce, Multi-Channel Network development, and new technology development, as well as accelerating the development of a Metaverse eco-system. Materials terms and conditions of the VIE Agreements, including an Exclusive Option Agreement, the Power of Attorney Agreement, a Share Pledge Agreement and an Exclusive Business Cooperation Agreement, are described as follows: Exclusive Option Agreement. Pursuant to the Exclusive Option Agreement (including any supplementary agreement thereto, if any) entered into by and among WXZJ, QYHZ and all the shareholders of QYHZ, the shareholders of QYHZ hereby irrevocably grant to WXZJ or its designee, to the extent permitted by the laws of the People’s Republic of China, the exclusive right to purchase all or part of the equity interest held by such shareholders at the lowest purchase price permitted by the laws of the People’s Republic of China. Without the written consent of WXZJ, QYHZ may not distribute any profits or create any encumbrance in any manner. If QYHZ makes the profit distribution with WXZJ’s written consent, QYHZ’s shareholders shall pay all of any funds received by them to WXZJ. The term of the Exclusive Option Agreement is twenty years and will be automatically renewed for one year. Upon the expiration of each renewed term, the Exclusive Option Agreement will be automatically renewed for one year. In the meantime, WXZJ shall have the right to terminate the Exclusive Option Agreement at any time by giving a three days’ prior notice. Power of Attorney Agreements. WXZJ has entered into a Power of Attorney Agreement (the “Power of Attorney,” including any supplementary agreements, if any) with each shareholder of QYHZ, pursuant to which each such shareholder grants the proxy rights to Zhejiang WFOE in connection with his equity interest in QYHZ, including, without limitation, all the shareholders’ beneficial rights and voting rights conferred by the Company Law of the People’s Republic of China and the Articles of Association of QYHZ. Each Power of Attorney Agreement shall be irrevocable from the date of execution and shall continue to be valid until the relevant shareholder no longer holds QYHZ’s equity interest. Share Pledge Agreement. In accordance with the Share Pledge Contract (including any supplementary agreement thereto, if any) entered into by and among Zhejiang WFOE, QYHZ and each of the shareholders of QYHZ, each shareholder of QYHZ has pledged all of QYHZ’s equity interest held by such shareholder to guarantee the respective performance of QYHZ and such shareholder under the Exclusive Option Contract, the Exclusive Business Cooperation Agreement and the Power of Attorney Agreement, as applicable. If QYHZ or any of its shareholders breaches its contractual obligations under any VIE Agreements, Zhejiang WFOE, as the pledgee, will have certain rights, including the sale of the pledged equity interest. The shareholders agree that, without the prior written consent of Zhejiang WFOE, they shall not transfer, sell, pledge, dispose of or in any other manner create any new encumbrance upon their equity interest in QYHZ. The Share Pledge Agreement shall remain effective until all obligations under the VIE Agreements have been performed, or the VIE Agreements have been terminated, or all obligations under the VIE Agreements have been fully performed. Exclusive Business Cooperation Agreement In accordance with the Exclusive Business Cooperation Agreement between WXZJ and QYHZ (including supplementary agreements thereto, if any), WXZJ will provide QYHZ with exclusive business support and all business-related technologies and consulting services in order to obtain the fees equal to the consolidated net income of Xiuli (Zhejiang) Culture Tech Co., Ltd., Leku (Zhejiang) Culture Tech Co., Ltd., Haifan (Zhejiang) Culture Tech Co., Ltd., Xiangfeng (Zhejiang) Culture Tech Co., Ltd. and Hongren (Zhejiang) Culture Tech Co., Ltd. after deducting losses of the previous year (if any). WXZJ may adjust the service fees according to the following factors: ● Quarterly based on the complexity and difficulty of the services provided pursuant to the Exclusive Business Cooperation Agreement during such quarter (“Quarterly Services”);the number of WXZJ’s employees who provided the Quarterly Services and the qualifications of these employees; ● The number of hours Zhejiang WFOE’s employees spent to provide the Quarterly Services; ● The nature and value of the Quarterly Services; ● market reference price; and ● QYHZ’s operating conditions. The term of the Exclusive Business Cooperation Agreement is twenty years and is automatically renewable for one year. Upon the expiration of each renewal term, the Exclusive Business Cooperation Agreement can be automatically renewed for one year. In addition, WXZJ shall have the right to terminate this agreement at any time by giving a three-day notice on the termination of this Agreement. Based on the foregoing contractual arrangements, which grant WXZJ effective control of QYHZ and its subsidiaries and obligate WXZJ to absorb all of the risk of loss from their activities and enable WXZJ to receive all of their expected residual returns, the Company accounts for QYHZ as a VIE. Accordingly, the Company consolidates the accounts of QYHZ for the periods presented herein, in accordance with Regulation S-X-3A-02 promulgated by the Securities Exchange Commission (“SEC”) and Accounting Standards Codification (“ASC”) 810-10, Consolidation. The following tables represent the financial information of the consolidated VIE and its subsidiaries as of December 31, 2022 and 2023 before eliminating the intercompany balances and transactions between the VIE and other entities within the Company: As of December 31, 2022 2023 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 114,478 115,322 16,243 Accounts receivable, net 165,419 198,709 27,988 Prepaid expenses and other current assets 101,684 65,751 9,261 Amounts due from related parties 1,052 - - Amounts due from inter-companies (1) 143,968 173,545 24,443 Total current assets 526,601 553,327 77,935 Non-current assets Property and equipment, net 1,871 1,356 191 Intangible assets, net 418,893 412,008 58,030 Goodwill 172,781 172,781 24,336 Deferred tax assets 3,649 6,135 864 Long term deposits and other assets 874 671 95 Long term investments 381,279 380,869 53,644 Right of use assets-operating lease 19,209 12,157 1,712 Total non-current assets 998,556 985,977 138,872 TOTAL ASSETS 1,525,157 1,539,304 216,807 LIABILITIES Current liabilities Accounts payable 80,564 53,545 7,543 Deferred revenue 62,567 81,503 11,479 Accrued salary and employee benefits 7,942 10,397 1,464 Accrued expenses and other current liabilities 7,014 11,300 1,592 Income tax payable 12,538 10,530 1,483 Amounts due to inter-companies (1) 389,400 424,856 59,840 Current portion of contingent consideration – earn-out liability 4,336 - - Lease liability-operating lease -current 7,174 7,974 1,123 Total current liabilities 571,535 600,105 84,524 Non-current liabilities Deferred tax liabilities 61,236 59,818 8,425 Lease liabilities-operating lease -non-current 12,773 4,798 676 Total non-current liabilities 74,009 64,616 9,101 TOTAL LIABILITIES 645,544 664,721 93,625 (1) Amount due from/to inter-companies consist of intercompany receivables/payables to the other companies within the Company. All revenue-producing assets recognized by the Company, including trademarks, patents, copyrights and software, that are held by the VIE, please refer to Note 8. There are no unrecognized revenue-producing assets. Summarized below is the information related to the financial performance of the VIE reported in the Company’s consolidated statements of income for the years ended December 31, 2021, 2022 and 2023, respectively: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Net revenues 1,198,273 1,291,701 1,215,582 171,211 Third party customers 1,164,317 1,291,602 1,215,582 171,211 Inter-companies 33,956 99 - - Net income (loss) 102,042 143,651 (14,991 ) (2,113 ) For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Net cash provided by operating activities 70,255 155,897 42,562 5,995 Net cash used in investing activities (250,714 ) (122,236 ) (42,554 ) (5,994 ) Net cash provided by (used in) financing activities 179,585 (198 ) 836 118 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries, and its VIE and VIE’s subsidiaries over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIE are eliminated upon consolidation. (b) Business combinations The Company accounts for all business combinations under the purchase method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). The purchase method of accounting requires that the consideration transferred to be allocated to net assets including separately identifiable assets and liabilities the Company acquired, based on their estimated fair value. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of the cost of the acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the identifiable net assets of the acquiree, the difference is recognized directly in earnings. The determination and allocation of fair values to the identifiable net assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring considerable judgment from management. Although the Company believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. (c) Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Areas where management uses subjective judgment include, but are not limited to revenue recognition, estimating the useful lives of long-lived assets and intangible assets, valuation assumptions in performing asset impairment tests of long-lived assets, fair value of warrant liabilities and contingent liability, allowance for doubtful accounts, and valuation of deferred taxes and deferred tax assets. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Foreign currency The functional currency of the Company is in US dollars and the functional currency of the Company’s subsidiaries and VIEs are Renminbi (“RMB”), as determined based on the criteria of Accounting Standards Codification (“ASC”) 830 (“ASC 830”) “Foreign Currency Matters”. The reporting currency of the Company is also the RMB. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange in place at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statement of operations. Assets and liabilities of the Company translated from their respective functional currencies to the reporting currency at the exchange rates at the balance sheet dates, equity accounts are translated at historical exchange rates and revenues and expenses are translated at the average exchange rates in effect during the reporting period. The resulting foreign currency translation adjustment are recorded in other comprehensive income (loss). (e) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows from RMB into USD (or “US$”) as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB7.0999, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on the last trading day of December 31, 2023. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate. (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits placed with banks which are unrestricted as to withdrawal or use and have original maturities less than three months. All highly liquid investments with a stated maturity of 90 days or less from the date of purchase are classified as cash equivalents. (g) Accounts receivable and allowance for credit losses Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for credit losses which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for credit losses taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. The Company adopted this guidance effective January 1, 2023. The Company makes specific bad debt provisions based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable. (h) Investment in marketable security Marketable securities consist of investments in equity securities with readily determinable fair values. Marketable equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities, in accordance with ASC 320. The Company accounts for investments in marketable equity securities with readily determinable fair values in accordance with ASC Topic 321, Investments - Equity Securities (“ASC 321”). These investments are measured at fair value with the related gains and losses, including unrealized, recognized in investment income (loss). (i) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation using the straight-line method over their estimated useful lives, once the asset is placed in service. The estimated useful lives are as follows: Computer and transmission equipment 3 years Furniture, fixtures and office equipment 5 years Repair and maintenance costs are charged to expense when incurred, whereas the cost of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Retirement, sale and disposals of assets are recorded by removing the cost and related accumulated depreciation with any resulting gain or loss reflected in the consolidated statements of income. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. (j) Intangible assets Intangible assets are carried at cost less accumulated amortization and any impairment. License for Beelive platform is determined to have an infinite useful life and is not subject to amortization and tested for impairment at least annually. Intangible assets with a finite useful life are amortized using the straight-line method over the estimated economic life of the intangible assets as follows: Trademark 10 years Patent 10 years Copyright 10 years Software 3 to 10 years Licenses acquired 3 years (k) Impairment of long-lived assets The Company evaluates its long-lived assets or asset group, including property and equipment and intangible assets including license that has an infinite useful life, for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates for impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available for the long-lived assets. No impairment of long-lived assets was recognized for the years ended December 31 2021, 2022 and 2023. (l) Goodwill Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not subject to amortization but is monitored annually for impairment or more frequently if there are indicators of impairment. Management considers the following potential indicators of impairment: significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of acquired assets or the strategy of the Company’s overall business, significant negative industry or economic trends and a significant decline in the Company’s stock price for a sustained period. The Company performs its impairment test on annual basis. Currently, the Company’s goodwill is evaluated at the entity level as it has been determined there is one operating segment comprised of one reporting unit. When assessing goodwill for impairment the Company first performs a qualitative assessment to determine whether it is necessary to perform a quantitative analysis. If the Company determines it is unlikely that the reporting unit fair value is less than its carrying value then no quantitative assessment is performed. If the Company cannot determine that it is likely that the reporting unit fair value is more than its carrying value, then the Company performs a quantitative assessment. For the year ended December 31, 2023, the Company performed the impairment test and determined that the fair value of goodwill was more than carrying value, therefore the Company did not recognize any impairment loss on goodwill for the year ended December 31, 2023. (m) Long term investment ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The Company adopted the new financial instruments accounting standard from January 1, 2020. Equity Investments with Readily Determinable Fair Values Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. Equity investments without readily determinable fair values After the adoption of this new accounting standard, the Company elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investment in current earnings. Changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Reasonable efforts shall be made to identify price changes that are known or that can reasonably be known. Equity investments accounted for using the equity method The Company accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control, using the equity method. The Company adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. The Company assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. (n) Fair value of financial instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables included in prepaid expenses and other current assets, accounts payables, balances with related parties and other current liabilities, approximate their fair values because of the short-term maturity of these instruments. Assets and Liabilities Measured or Disclosed at Fair Value on a recurring basis The following tables represent the fair value hierarchy of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2023: As of December 31, 2022 Fair Value Measurement at the Reporting Date using Quoted price Significant Significant Total RMB RMB RMB RMB Financial assets: Investment in marketable equity security 40,548 - - 40,548 Financial liabilities: Earn-out liability from Weiliantong acquisition - - 4,336 4,336 Warrant liability 166 166 Total - - 4,502 4,502 As of December 31, 2023 Fair Value Measurement at the Reporting Date using Quoted price Significant Significant Total RMB RMB RMB RMB Financial assets: Investment in marketable equity security 31,525 - - 31,525 Financial liabilities: Earn-out liability from Weiliantong acquisition - - - - Warrant liability - - - - Total - - - - Contingent consideration – earn-out liability (i) Earn-out liability from BeeLive acquisition On August 10, 2020, the Company signed an Equity Acquisition Framework Agreement (the “BeeLive Acquisition Agreement”) to acquire 100% equity interest in Sciscape International Limited which holds the platform BeeLive International and 100% equity interest in Tianjin Guangju Dingfei Technology Co., Ltd. which holds BeeLive Chinese (MiFeng). In connection with the acquisition of Beelive, the previous shareholders of BeeLive may be entitled to receive earnout shares as follows: (i) if the BeeLive Company’s total annual revenue is no less than RMB336,600 in Year 2020,the previous shareholder will be entitled to received additional 540,960 Class A ordinary shares (“Beelive Earn-out Target 2020”); (ii) if the BeeLive Companies’ total annual revenue is no less than RMB 460,600 in Year 2021 (“Beelive Earn-out Target 2021”), the previous shareholder will be entitled to received additional 540,960 Class A ordinary shares; and (iii) if the BeeLive Companies’ total annual revenue is no less than RMB580,900 in Year 2022 (“Beelive Earn-out Target 2022”), the previous shareholder will be entitled to received additional 540,960 Class A ordinary shares. If the total annual revenue of BeeLive Company in a particular performance year does not reach the target revenue as specified above, but is equal to or more than 80% of the target revenue, the previous shareholder will be entitled to a reduced number of the earn-out shares. For the years ended December 31, 2021 and 2022, the Beelive Earn-out Target 2021 and 2022 were met and the Company issued the related earn-out shares accordingly (Note 15). Upon the closing of the BeeLive acquisition, the Company recorded the fair value of the contingent consideration resulted from earn-out liability and recorded the changes in fair value in earnings. The Company determined the fair value of the contingent consideration using binomial model, which includes significant unobservable inputs that are classified as level 3 in the fair value hierarchy. A binomial model uses random numbers, together with the assumption of volatility, risk-free rate, expected dividend rate, to generate individual stock price paths. The major assumptions used in the binomial model are as follows: December 31, December 31, Risk-free interest rate 0.38 % 4.73 % Share price $ 5.68 $ 1.97 Probability 20% - 50 % 20% - 50 % (ii) Earn-out liability from Weiliantong acquisition In connection with the acquisition of Weiliantong (Note 4), the previous shareholders of Weiliantong may be entitled to receive earnout shares as follows: (i) if the Weiliantong Company’s total annual revenue is no less than RMB280,000 in 2022, the previous shareholder will be entitled to received additional 10% of consideration( Class A ordinary shares) (“Weiliantong Earn-out Target 2022”); (ii) if Weiliantong total annual revenue is no less than RMB 360,000 in Year 2023, the previous shareholder will be entitled to received additional 10% of consideration (Class A ordinary shares); If the total annual revenue of Weiliantong Company in a particular performance year does not reach the target revenue as specified above, but is equal to or more than 80% of the target revenue, the previous shareholder will be entitled to a reduced number of the earn-out shares. For the years ended December 31, 2022 and 2023, the Weiliantong Earn-out Target 2022 was met and 2023 was partially met and the Company issued the related earn-out shares accordingly (Note 15). Upon the closing of the Weiliantong acquisition, the Company recorded the fair value of the contingent consideration resulted from earn-out liability and recorded the changes in fair value in earnings. The Company determined the fair value of the contingent consideration using binomial model, which includes significant unobservable inputs that are classified as level 3 in the fair value hierarchy. A binomial model uses random numbers, together with the assumption of volatility, risk-free rate, expected dividend rate, to generate individual stock price paths. The major assumptions used are as follows: January 1, December 31, Risk-free interest rate 0.39-0.73 % 4.73 % Share price $ 5.13 $ 1.97 Probability 20% - 50 % 20% - 50 % The Company measures contingent consideration – earn-out liability at fair value on a recurring basis as of the dates of acquisition and December 31, 2022 and 2023. The following table presents the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: As of December 31, 2022, Beelive has achieved 93.87% of the Beelive Earn-out Target 2022 and Weiliantong has achieved 100% of Weiliantong Earn-out Target 2022. As a result, the Company classified the related portion of earn-out liability in aggregated of RMB13,106 as shares to be issued in the equity of the Company. As of December 31, 2022, there was 995,118 earn-out shares required to be issued and the Company included it in the calculation of earnings per share. Upon issuance of this report, a total of 507,804 shares (540,960 * 93.87%) has been issued to Cosmic Soar, the previous shareholder of Beelieve and a total of 487,314 share has been issue to Wolter Global, the previous shareholder of Weilingtong. As of December 31, 2023, Weiliantong has achieved 82.72% of Weiliantong Earn-out Target 2023. As a result, the Company classified the related portion of earn-out liability in aggregated of RMB9,960 as shares to be issued in the equity of the Company. As of December 31, 2023, there was 403,089 earn-out shares required to be issued and the Company included it in the calculation of earnings per share. The Company did not transfer any assets or liabilities in or out of Level 3 during the years ended December 31, 2021, 2022 and 2023. The following is a reconciliation of the beginning and ending balances for contingent consideration measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2021, 2022 and 2023: Amount RMB Balance at January 1, 2021 107,299 Fair value change 33,584 Exchange difference (2,126 ) Reclassification to shares to be issued (128,119 ) Balance at December 31, 2021 10,638 Contingent consideration resulting from Weiliantong acquisition 19,875 Fair value change (13,071 ) Reclassification to shares to be issued (13,106 ) Balance at December 31, 2022 4,336 Fair value change 5,624 Reclassification to shares to be issued (9,960 ) Balance at December 31, 2023 - The aggregated contingent considerations for the earn-out liabilities were RMB4,336 and nil Warrant liabilities The Company’s warrants assumed from SPAC acquisition on May 7,2020, the date of the closing of SPAC Transaction, that have complex terms, such as a clause in which the warrant agreements contain a cash settlement provision whereby the holders could settle the warrants for cash upon a fundamental transaction that is considered outside of the control of management are considered to be a derivative as contemplated in ASC 815-40. The warrant is recorded as derivative liability on the consolidated balance sheet upon the SPAC transaction and is adjusted to its fair value at the end of each reporting period, with the change being recorded as other expense or gain in accordance with ASC 820. The warrant liabilities were measured and recorded on a recurring basis. The Company determined the fair value of the contingent consideration using binomial model, which includes significant unobservable inputs that are classified as level 3 in the fair value hierarchy. A binomial model uses random numbers, together with the assumption of volatility, risk-free rate, expected dividend rate, to generate individual stock price paths. The major assumptions used in the binomial model are as follows: December 31, December 31, December 31, Risk-free interest rate 0.75 % 4.70 % 5.58 % Share price $ 5.68 $ 1.97 $ 3.48 Volatility 53 % 68 % 60 % The following table sets forth the establishment of the Company’s Level 3 warrant liabilities, as well as a summary of the changes in the fair value: Amount RMB Balance as January 1, 2021 29,558 Fair value change (16,421 ) Exercised (115 ) Exchange difference (2,698 ) Balance as of December 31, 2021 10,324 Fair value change (10,776 ) Exchange difference 618 Balance as of December 31, 2022 166 Fair value change (170 ) Exchange difference 4 Balance as of December 31, 2023 - (o) Revenue recognition On January 1, 2019, the Company adopted ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2019. Results for reporting periods beginning after January 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. Based on the Company’s assessment, the adoption of ASC 606 did not result in any adjustment on the Company’s consolidated financial statements, and there were no material differences between the Company’s adoption of ASC 606 and its historic accounting under ASC 605. Revenues are recognized when control of the promised virtual items or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those virtual items or services. Revenue is recorded, net of sales related taxes and surcharges. Live streaming The Company is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. The Company is responsible for providing a technological infrastructure to enable the broadcasters, online users and viewers to interact through live streaming platforms. All the platforms can be accessed for free. The Company mainly derives the revenue from sales of virtual items in the platforms. The Company has a recharge system for users to purchase the Company’s virtual currency then purchase virtual items for use. Users can recharge via various online third-party payment platforms, including WeChat Pay, AliPay and other payment platforms. Virtual currency is non-refundable and often consumed soon after it is purchased. The Company designs, creates and offers various virtual items for sales to users with pre-determined stand-alone selling price. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to broadcasters to show support for their favorite broadcasters, or purchase time-based virtual items for one or multiple months for a monthly fee, which provide users with recognized status, such as priority speaking rights or special symbols over a period of time. The Company shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with broadcasters and talent agencies in accordance with their revenue sharing arrangements. Broadcasters, who do not have revenue sharing arrangements with the Company, are not entitled to any revenue sharing fee. The Company also utilizes third-party payment collection channels, which charges the payment handling cost for users to purchase the virtual currency directly from it. The payment handling costs are recorded in cost of sales. The Company evaluates and determines that it is the principal and views users to be its customers, because the Company controls the virtual items before they are transferred to users. Its control is evidenced by the Company’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Company being primarily responsible to the users for the delivery of the virtual items as well as having full discretion in establishing pricing for the virtual items. Accordingly, the Company reports live streaming revenues on a gross basis with the amounts billed to users recorded as revenues and revenue sharing fee paid to broadcasters and related agencies recorded as cost of revenues. Sales proceeds are initially recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. The Company has determined that each individual virtual item represents a distinct performance obligation. Accordingly, live streaming revenue is recognized immediately when the consumable virtual item is used, or in the case of time-based virtual items, revenue is recognized over the fixed period on a straight-line basis. The Company does not have further obligations to the user after the virtual items are consumed. The Company’s live streaming virtual items are generally sold without right of return and the Company does not provide any other credit and incentive to its users. Unconsumed virtual currency is recorded as deferred revenue. The Company also cooperates with independent third-party distributors to sell virtual currency through annual distribution agreements with these distributors. Third-party distributors purchase virtual currency from the Company with no refund provision according to the annual distribution agreements, and they are responsible for selling the virtual currency to end users. They may engage their own sales representatives, which are referred to as “sales agents” to directly sell to individual end users. The Company has no control over such “sales agents”. The Company has discretion to determine the price of the virtual currency sold to its third-party distributors, but has no discretion as to the price at which virtual currency is sold by its third-party distributors to the sales agents. Technical services and others The Company generated technical revenues from providing technical development, advisory and others, which accounts for only approximately 2% or less of revenue for the years ended December 31, 2021, 2022 and 2023. As the amount was immaterial, and short-term in nature, which is usually less than six months, the Company recognizes revenue when service were rendered and accepted by customers. Practical expedients and exemptions The Company’s contracts have an original duration of one year or less. Accordingly, the Company does not disclose the value of unsatisfied performance obligations. Revenue by types and platforms The following table sets forth types of our revenue for the periods indicated: For the years ended December 31, 2021 2022 2023 2023 Amounts in thousands of RMB and USD RMB RMB RMB US$ Live streaming - consumable virtual items revenue 1,617,056 1,886,179 1,420,258 200,040 Live streaming - time based virtual item revenue 32,905 27,683 25,004 3,522 Technical services and others 19,397 39,395 19,609 2,761 Total revenue 1,669,358 1,953,257 1,464,871 206,323 As of December 31, 2023, we operated five brands of live streaming platforms, consisting of: Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming (including BeeLive Chinese version – Mifeng) and Hongle Live Streaming. The following table sets forth our revenue by platforms for the periods indicated: For the years ended December 31, 2021 2022 2023 2023 Amounts in thousands of RMB and USD RMB RMB RMB US$ Showself 595,004 521,155 334,186 47,070 Lehai 242,910 241,851 263,517 37,116 Haixiu 326,661 317,953 245,049 34,514 Beelive 485,386 545,296 304,730 42,921 Hongle - 287,607 297,780 41,941 Technical services |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2023 | |
Concentration of Risk [Abstract] | |
CONCENTRATION OF RISK | 3. CONCENTRATION OF RISK (a) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, other receivables included in prepaid expenses, other current assets, and amounts due from related parties. As of December 31, 2022 and 2023, RMB172,514 and RMB199,822 (US$28,144), respectively, were deposited with major financial institutions located in the PRC. There is a RMB500,000 deposit insurance limit for a legal entity’s aggregated balance at each mainland PRC bank, and the bank deposits with financial institutions in the Hong Kong Special Administrative Region are insured by the government authority up to HKD 500,000. Management believes that these financial institutions are of high credit quality and continually monitor the credit worthiness of these financial institutions. Historically, deposits in Chinese banks are secure due to the state policy on protecting depositors’ interests. For the credit risk related to accounts receivable, the Company adopted Credit Losses (Topic 326) effective January 1, 2023. The company makes specific bad debt provisions based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. (b) Currency convertibility risk Substantially all of the Company’s businesses are transacted in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China. However, the unification of the exchange rates does not imply the convertibility of RMB ( ) into US$ ($) or other foreign currencies. All foreign exchange transactions continue to take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. (c) Significant customers For the year ended December 31, 2021, no customer individually represents greater than 10% of the total revenue. For the year ended December 31, 2022, one customer accounted for 11.2% of the Company’s total revenue. For the year ended December 31, 2023, no customer individually represents greater than 10% of the total revenue. (d) Significant suppliers For the year ended December 31, 2021, one vendor accounted for 19.6% of the Company’s total purchases and one vendor accounted for 10.9% of the Company’s accounts payable as of December 31, 2021. For the year ended December 31, 2022, no vendor accounted for greater than 10% of the Company’s total purchases and no vendor accounted for greater than 10% of the Company’s accounts payable as of December 31, 2022. For the year ended December 31, 2023, one vendor accounted for 10.0% of the Company’s total purchases and one vendor accounted for 11.1% of the Company’s accounts payable as of December 31, 2023. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
Acquisition [Abstract] | |
ACQUISITION | 4. ACQUISITION 4.1 Acquisition of Weiliantong On December 29, 2021, the Company entered into an Equity Acquisition Framework Agreement (the “Framework Agreement”) with Golden Shield Enterprises Limited (“Golden Shield”), Beijing Weiliantong Technology Co., Ltd. (“Weiliantong”), Tianjin Yieryi Technology Co., Ltd. (“Yieryi”), Wolter Global Investment Limited (“Wolter Global”) and Qingdao Weilaijin Industry Investment Fund Partnership (Limited Partnership) (“Weilaijin”), which is one of the shareholders of Yieryi. Pursuant to the Framework Agreement, the Company, or its affiliates designated by the Company, acquires all of the outstanding equity interests of (i) Weiliantong from its shareholder Yieryi and (ii) Golden Shield from Wolter Global (the “Acquisitions”). Yieryi and Wolter Global are under common control. Pursuant to the Framework Agreement, the Acquisition requires both cash and share considerations (the “Considerations”). The Company is required to pay RMB180,000 in its Class A ordinary shares, consisting of (1) the shares consideration of RMB20,800 to Weilaijin (the “Weilaijin Share Consideration”), a shareholder of Yieryi, and (ii) the shares consideration of RMB159,200 in its Class A ordinary shares to Wolter Global (the “Wolter Global Share Consideration”), including 20% of the Wolter Global Share Consideration are subject to certain performance conditions (i.e., earn-out provisions) and requirements over the following two years (earn-out arrangement). The Company is also required to pay cash consideration of RMB13,800 cash to Yieryi. The total fair value of the Considerations was determined at RMB181,958, based on a valuation performed by an independent valuation firm engaged by the Company. In addition, the Company is required to repay Weiliantong’s loan payable in aggregated of RMB86,200 on behalf of Weiliantong, consisting of RMB77,400 loans payable to Yieryi and RMB8,800 loan payable to a third party. The objective of the Acquisition is to support the Company’s strategic growth initiative of acquiring the top-tier online live streaming platform Hongle.tv and expanding the NFT business scope. The Acquisition was closed on January 1, 2022. The Acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company. Amount RMB Cash acquired 9,497 Accounts receivable, net 937 Prepaid expenses and other current assets 893 Deferred tax assets-current 6,163 17,490 Property and equipment, net 163 Intangible assets, net 190,021 Long term deposits and other non-current assets 136 Goodwill 75,742 Total assets 283,552 Current liabilities 101,594 Total liabilities 101,594 Total consideration 181,958 The intangible assets are mainly attributable to Trademark and license as well as software acquired through the acquisition, which are generally amortized over 5-10 years, except that the license acquired for Weiliantong platform is determined to have an infinite useful life and is not subject to amortization. Weiliantong began its business since 2015. The following table summarizes unaudited pro forma results of operations for the year ended December 31, 2021, assuming that acquisition of Weiliantong occurred as of January 1, 2021. The pro forma results have been prepared for comparative purpose only based on management’s best estimate and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of the beginning of period: For the RMB Pro forma revenue 1,860,448 Pro forma gross profit 332,864 Pro forma income from operations 179,664 Pro forma net income 184,552 4.2 Acquisition of Chuangda Huizhi In January 2022, SG consummated the acquisition of the 100% equity interest in Chuangda Zhihui (Beijing) Technology Co., Ltd. (“CDZH”) and its wholly owned subsidiary, Beijing Huayi Dongchen Technology Co., Ltd. (“HYDC”) from its original shareholders for a cash consideration of RMB10 (the “CDZH acquisition”). The historical consolidated operating results of CDZH were not significant to the Company. The Company believes the CDZH acquisition will help to enrich the Company’s product line, expand its user base and capitalize on the growth potential in the live streaming market. The CDZH acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company. Amount RMB Cash acquired 168 Accounts receivable, net 97 Prepaid expenses and other current assets 15 Amounts due from related parties 6,563 6,843 Intangible assets, net 100 Goodwill 4,971 Total assets 11,914 Current liabilities 11,814 Total liabilities 11,814 Total consideration 100 The intangible assets are mainly attributable to a license acquired through the acquisition, which are generally amortized over 6 years. 4.3 Acquisition of SJ Verse On October 7, 2023, Scienjoy Verse Tech Ltd entered into a share acquisition agreement with a third party to pursuant 90% equity in SJ Verse (formerly name as “Nujoom Almashareq Media L.L.C”) for a consideration of US$1,000 (RMB7,100). The transaction was completed on October 7, 2023. SJ Verse is a Dubai-based multi-channel network (MCN) committed to discovering, nurturing, and propelling emerging content creators into the spotlight. The historical operating results of SJ Verse were not significant to the Company. The Company believes the SJ Verse acquisition will help to explore oversea market. The SJ Verse acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company. Amount RMB US$ Cash acquired 212 30 Prepaid expenses and other current assets 104 15 316 45 Property and equipment, net 270 38 Goodwill 9,686 1,364 Total assets 10,272 1,447 Current liabilities 303 42 Non-current liabilities 3,165 446 Total liabilities 3,468 488 10% Equity Value with non-controlling interests (288 ) (41 ) Total consideration 7,092 1,000 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable and allowance for credit losses consist of the following: As of December 31, 2022 2023 2023 RMB RMB US$ Accounts receivable 320,203 266,076 37,476 Less: allowance for credit losses (3,546 ) (5,097 ) (718 ) Accounts receivable, net 316,657 260,979 36,758 An analysis of the allowance for credit losses is as follows: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Balance, beginning of year 3,813 2,215 3,546 499 Bad debt allowances from acquisition - (1,459 ) - - Additions (recovery) (1,592 ) 2,739 1,530 216 Exchange difference (6 ) 51 21 3 Balance, end of year 2,215 3,546 5,097 718 Four unrelated distributors accounted for 34.2%, 14.9%, 13.9% and 10.0% of the Company’s accounts receivable as of December 31, 2022, respectively. Three unrelated distributors accounted for 30.3%, 24.8% and 12.1% of the Company’s accounts receivable as of December 31, 2023, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: As of December 31, 2022 2023 2023 RMB RMB US$ VAT recoverable 25,004 25,221 3,552 Prepaid expense 9,679 6,019 848 Prepayment for property and equipment (1) 34,000 - - Investment buyback receivable (2) 30,000 30,000 4,225 Loan receivable (3) 15,000 16,200 2,282 Other receivables 1,487 1,213 171 Prepaid expenses and other current assets 115,170 78,653 11,078 (1) The Company terminated the related purchases after December 31, 2022 and the prepayment balance of RMB34,000 was fully refunded and collected by April 30, 2023. (2) The Company invested RMB30,000 in Yieryi for its 12% equity interest on August 17, 2021. As part of the Framework Agreement signed on December 29, 2021, one of the shareholders of Yieryi bought such equity interest back from the Company for RMB30,000. On August 25, 2023, such shareholder and his related party pledged their ownership of 1.3 million ordinary shares of the Company to ensure the recoverability of the receivable balance. On March 22, 2024, such shareholder and his related party further pledged their ownership of 2,969,114 ordinary shares of the Company to ensure the recoverability of the receivable balance, subsequently. (3) (i) On October 20, 2021, the Company lent RMB8,000 to Jiada Hexin (Beijing) Technology Co., Ltd for working capital purpose. The loan was from October 20, 2021 to December 31, 2022 with monthly interest rate of 0.2% from October 20, 2021 to December 31, 2021 and monthly interest rate of 0.5% from January 1, 2022 to December 31, 2022 , On April 11, 2022, the Company lent RMB7,000 to Jiada Hexin (Beijing) Technology Co., Ltd for working capital purpose. The loan was from April 11, 2022 to December 31, 2023 with monthly interest rate of 0.2% from April 11, 2022 to December 31, 2022 and monthly interest rate of 0.5% from January 1, 2023 to December 31, 2023. Due to continuous loss in Jiada, the Company fully impaired loan receivable of RMB15,000 and related interest receivable of RMB1,335 for the year ended December 31, 2023. (ii) On March 2, 2023, the Company lent RMB15,000 to Hangzhou Doujin Information Technology Co., Ltd for working capital purpose. The loan term was for one year with daily interest rate of 0.02%. The loan was fully repaid as of March 21, 2024, subsequently. (iii) On October 10, 2023, the Company lent RMB1,200 to Zhejiang Mengxiang Zhixing Cultural Technology Co., Ltd. for its for working capital purpose. The loan term was for one year with daily interest rate of 0.02%. The loan was fully repaid as of March 22, 2024, subsequently. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 7. PROPERTY AND EQUIPMENT, NET Property and equipment, including those held under capital leases, consists of the following: As of December 31, 2022 2023 2023 RMB RMB US$ At cost: Computer and transmission equipment 8,953 9,521 1,341 Furniture, fixtures and office equipment 1,937 1,931 272 Total 10,890 11,452 1,613 Less: accumulated depreciation (8,155 ) (9,259 ) (1,304 ) Property and equipment, net 2,735 2,193 309 For the years ended December 31, 2021, 2022 and 2023, depreciation expense was RMB745, RMB1,149 and RMB 1,237 (US$174), respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | 8. INTANGIBLE ASSETS Intangible assets, consists of the following: As of December 31, 2022 2023 2023 RMB RMB US$ At cost: Trademark 50,102 49,875 7,026 Patent 122 122 17 Copyright 172 214 30 Software 9,985 9,993 1,407 License acquired 371,700 371,700 52,353 Total 432,081 431,904 60,833 Less: accumulated amortization (13,026 ) (19,750 ) (2,782 ) Intangible assets, net 419,055 412,154 58,051 For the years ended December 31, 2021, 2022 and 2023, amortization expense was RMB4,090, RMB7,038 and RMB6,964 (US$981), respectively. The estimated annual amortization expense for each of the five succeeding fiscal years is as follow: Amortization Amortization Twelve months ending December 31, RMB US$ 2024 6,967 981 2025 6,440 907 2026 5,695 802 2027 5,072 714 2028 5,051 711 Thereafter 11,394 1,605 Total 40,619 5,720 |
Long Term Investment
Long Term Investment | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Investment [Abstract] | |
LONG TERM INVESTMENT | 9. LONG TERM INVESTMENT Equity Cost method Total RMB RMB RMB Balance as of January 1, 2022 72,002 29,725 101,727 Additions 75,000 32,000 107,000 Share of gain in equity method investee 25,449 - 25,449 Balance as of December 31, 2022 172,451 61,725 234,176 Equity Cost method Total Total RMB RMB RMB US$ Balance as of January 1, 2023 172,451 61,725 234,176 32,983 Additions 21,384 42,500 63,884 8,998 Decrease - (444 ) (444 ) (63 ) Share of loss in equity method investee (31,405 ) - (31,405 ) (4,423 ) Impairment - (11,800 ) (11,800 ) (1,662 ) Balance as of December 31, 2023 162,430 91,981 254,411 35,833 (i) Investments of RMB91,981 included the following items: Investments of RMB5,000 represented of 1.70% equity investment in the privately-held entity (“Zhejiang Qusu Technology Co., Ltd” or “QS”), in which the Company does not have significant influence and such investment do not have readily determinable fair values. On May 27, 2021, the Company invested RMB10,000 for 4.44% equity interest in Qingdao Weilai JingChanye Investment Fund LP (“QD”), in which the Company does not have significant influence and such investment do not have readily determinable fair values. During the year ended December 31, 2023, the Company received principal refund of RMB444 and share of gain of RMB77, respectively. On March 8, 2021, the Company invested RMB 8,000 for 13.79% equity interest in Jiada Hexin (Beijing) Technology Co., Ltd. (“Jiada”), in which the Company does not have significant influence and such investment do not have readily determinable fair values. On December 8, 2021, the Company invested RMB2,925 for 19.50% equity interest in Liujiaoshou Drink Co., Ltd., in which the Company does not have significant influence and such investment do not have readily determinable fair values. On December 8, 2021, the Company invested RMB3,800 for 19.00% equity interest in Beijing Dunengmaihuo Culture Media Co., Ltd.(“Dunengmaihuo”), in which the Company does not have significant influence and such investment do not have readily determinable fair values. On May 6, 2022, the Company signed an investment agreement to invest up to RMB5,000 into Valley Hongyuan (Hangzhou) Technology Partnership LP for its 14.28% equity interest, in which the Company does not have significant influence and such investment do not have readily determinable fair values. For the year ended December 31, 2022, the Company invested RMB2,000 into Valley Hongyuan (Hangzhou) Technology Partnership LP. On December 9, 2022, the Company invested RMB5,000 for 1.12% equity interest in Chengdu Tianfu Yuanhe Jingu Venture Capital Center LP, in which the Company does not have significant influence and such investment do not have readily determinable fair values. On December 19, 2022, the Company invested RMB25,000 in Banyou Century (Hangzhou) Technology Co., Ltd.(“Banyou”) for its 7.6923% equity interest, in which the Company does not have significant influence and such investment do not have readily determinable fair values. On July 3, 2023, the Company signed a purchase agreement with Qingdao Sixiang Zhuohong Private Equity LP (“Qingdao LP”) to purchase 11.5385% equity interest of Banyou for a consideration of RMB37,500. Together with the newly acquired equity interest, the Company holds in total of 19.2308% equity interest in Banyou, in which the Company does not have significant influence and such investment do not have readily determinable fair values. On July 19, 2023, the Company fully paid RMB37,500 to Qingdao LP. On October 9, 2021, the Company signed an investment agreement to invest up to RMB8,500 into Hainan Jiuhe Huiyuan No.1 Fund Partnership (Limited partnership) (“Hainan Jiuhe”) for its 3.26% equity interest, in which the Company does not have significant influence and such investment do not have readily determinable fair values. On January 17, 2023, the Company invested RMB3,500 in Hainan Jiuhe. On June 19, 2023, the Company invested RMB1,000 in Zhejiang Mengxiang Zhixing Cultural Technology Co., Ltd. for its 5% equity interest, in which the Company does not have significant influence and such investment do not have readily determinable fair values. On March 6, 2024, the Company entered into an agreement to further invest RMB4,000 in Zhejiang Mengxiang Zhixing Cultural Technology Co., Ltd, and after this investment, the Company holds total 14.5% equity interest in Zhejiang Mengxiang Zhixing Cultural Technology Co., Ltd. On March 20, 2024, the Company paid RMB2,400 to Zhejiang Mengxiang Zhixing Cultural Technology Co., Ltd. On August 15, 2023, the Company invested RMB500 in Zhejiang Yuanlai Spacetime Cultural Technology Co., Ltd for its 5% equity interest, in which the Company does not have significant influence and such investment do not have readily determinable fair values. (ii) On October 9, 2021, the Company signed an investment agreement to invest up to RMB150,000 into Qingdao Sixiang Zhuohong Private Equity LP (“Qingdao LP”), which further invests in broadcaster, IT, Big Data, Artificial Intelligence and logistic industry. The Qingdao LLP is managed by two unrelated general partners (GPs). The Company, as a Limited partner, neither participate in the daily operation of Qingdao LP, nor has the exclusive rights to control the partnership meeting and investment decisions. As a result, the Company considers it has significant influence on this investment based on its voting power. As of December 31, 2023, the Company invested RMB150,000 into Qingdao LLP. The Company recorded shares of loss RMB30,666 for the year ended December 31, 2023. On September 6, 2023, the Company signed a share purchase agreement to invest up to US$3,000 (RMB21,384) into DVCC TECHNOLOGY L.L.C (“DVCC”) for its 30% equity interest, the investment will be paid in two tranches (a) US$1,000 will be paid in five days after the completion of the corresponding condition is completed; (b)US$2,000 no later than ten days after the completion of the corresponding condition. As a result, the Company considers it has significant influence on this investment based on its voting power. For the year ended December 31, 2023, the Company paid US$1,000 to DVCC and had shares of loss RMB739. On February 29, 2024, the Company has paid US$2,000 subsequently. As of December 31, 2023, based on the financial conditions and operating performances in Jiada and Dunengmaihuo, a fully impairment loss of RMB11,800 was applied against these investments. The Company believes there was no material market environment change or any other factor that indicating the fair value of the above other investments was less than its carrying value, hence, the Company concluded there is no impairment of the above investments. |
Long Term Deposits and Other As
Long Term Deposits and Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Deposits and Other Assets [Abstract] | |
LONG TERM DEPOSITS AND OTHER ASSETS | 10. LONG TERM DEPOSITS AND OTHER ASSETS Long term deposits and other assets consist of the following: As of December 31, 2022 2023 2023 RMB RMB US$ Rent deposits 684 457 64 Advertising deposits 269 269 38 Long term deposits and other assets 953 726 102 |
Right of Use Assets
Right of Use Assets | 12 Months Ended |
Dec. 31, 2023 | |
Right of Use Assets [Abstract] | |
RIGHT OF USE ASSETS | 11. RIGHT OF USE ASSETS The Company has several operating leases for offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Effective January 1, 2022, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated deficit as of January 1, 2022. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. Total lease expense for the year ended December 31, 2021, 2022 and 2023 amounted to RMB5,424, RMB6,398 and RMB7,543 (US$1,062), respectively. Supplemental balance sheet information related to operating leases was as follows: As of December 31, 2022 2023 2023 RMB RMB US$ Right-of-use assets, net 19,209 12,157 1,712 Operating lease liabilities - current 7,174 7,974 1,123 Operating lease liabilities - non-current 12,773 4,798 676 Total operating lease liabilities 19,947 12,772 1,799 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2023: Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.83 years Weighted average discount rate 4.75 % The following is a schedule of maturities of lease liabilities as of December 31, 2023: Twelve months ending December 31, RMB US$ 2024 8,360 1177 2025 4,210 593 2026 706 100 Total future minimum lease payments 13,276 1,870 Less: imputed interest 504 71 Present value of lease liabilities 12,772 1,799 |
Bank Loan
Bank Loan | 12 Months Ended |
Dec. 31, 2023 | |
Bank Loan [Abstract] | |
BANK LOAN | 12. Bank Loan On August 12, 2022, the Company entered into a loan agreement with Bank of Hangzhou to obtain a loan of RMB5,000 for a term of one year and at a fixed rate of 4.5% per annum. The loan was guaranteed by WXZJ. On January24, 2023, the Company fully repaid the loan. On February 27, 2023, the Company entered into a new loan with Bank of Hangzhou to obtain a loan of RMB5,000 (US$704) for a term of one year and at a fixed rate of 4.3% per annum. The loan was guaranteed by WXZJ, On March 31, 2023, the Company fully prepaid the loan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | 13. INCOME TAXES Enterprise income tax British Virgin Islands Under the current laws of the British Virgin Islands, the Company incorporated in the British Virgin Islands is not subject to tax on income or capital gain. Additionally, the British Virgin Islands does not impose a withholding tax on payments of dividends to shareholders. Cayman Islands Under the current laws of the Cayman Islands, the subsidiary of the Company incorporated in the Cayman Islands is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Singapore Under Singapore tax laws, subsidiaries in Singapore are subject to statutory income tax rate at 17.0% if revenue is generated in Singapore and there are no withholding taxes in Singapore on remittance of dividends. Dubai Subsidiaries in Dubai are subject to statutory income tax rate at 9% above the threshold of 375,000AED Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the subsidiary of the Company in Hong Kong is subject to 16.5% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. The PRC The Company’s subsidiaries and the VIE that are each incorporated in the PRC are subject to Corporate Income Tax (“CIT”) on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the new PRC Enterprise Income Tax Laws (“PRC Income Tax Laws”) effective from January 1, 2008. Pursuant to the PRC Income Tax Laws, the Company’s PRC subsidiaries and the VIE are subject to a CIT statutory rate of 25%. Under the PRC Income Tax Laws, an enterprise which qualifies as a High and New Technology Enterprise (“the HNTE”) is entitled to a preferential tax rate of 15% provided it continues to meet HNTE qualification standards on an annual basis. SG qualifies as an HNTE and is entitled for a preferential tax rate of 15% from 2018 to 2024. HX qualifies as an HNTE and is entitled for a preferential tax rate of 15% from 2017 to 2026. LH qualifies as an HNTE and is entitled for a preferential tax rate of 15% from 2016 to 2024. WLT qualifies as an HNTE and is entitled for a preferential tax rate of 15% from 2017 to 2026. CX qualifies as an HNTE and is entitled for a preferential tax rate of 15% from 2018 to 2021. The HNTE certificate of CX expired in July 2021. Under the PRC Income Tax Laws, during the period from January 1, 2010 to December 31, 2030, an enterprise which established in region of Holgus and Kashgar is entitled to a preferential tax rate of 0% in five consecutive years and a preferential tax rate of 9% for the next five years since the first-year income generated from operations provided it continues to meet the conditions within the required scope. Holgus X qualifies for the conditions and entitled for a preferential tax rate of 0% from 2017 to 2021 and a preferential tax rate of 9% from 2022 to 2026. Kashgar Times qualifies for the conditions and entitled for a preferential tax rate of 0% from 2016 to 2020 and a preferential tax rate of 9% from 2021 to 2025. Holgus H qualifies for the conditions and entitled for a preferential tax rate of 0% from 2020 to 2025 and a preferential tax rate of 9% from 2026 to 2030. Kashgar Lehong qualifies for the conditions and entitled for a preferential tax rate of 0% from 2020 to 2025 and a preferential tax rate of 9% from 2026 to 2030. For the years ended December 31, 2021, 2022 and 2023, total tax saving for the preferential tax rate were RMB38,564, RMB18,660 and RMB3,245 (US$457), respectively, the impacts on basic EPS were RMB1.3, RMB0.5 and RMB0.1 (US$0.0), respectively, and the impacts on dilutive EPS were RMB1.3, RMB0.5 and RMB0.1 (US$0.0), respectively. Uncertain tax positions The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2023, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest or penalty related to potential underpaid income tax expenses for the years ended December 31, 2021, 2022 and 2023, and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2023. The income tax expenses comprise: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Current income tax expense 5,285 19,469 12,940 1,822 Deferred income tax expense (benefit) 319 (1,402 ) (4,460 ) (628 ) Income tax expenses 5,604 18,067 8,480 1,194 A reconciliation of the differences between the statutory tax rate and the effective tax rate for EIT for the years ended December 31, 2021, 2022 and 2023 is as follows: For the years ended December 31, 2021 2022 2023 Income tax computed at PRC statutory tax rate 25.0 % 25.0 % (25.0 )% Effect of tax-preferential entities (16.3 )% (7.1 )% 23.0 % Non-deductible expenses and others (11.9 )% (9.4 )% 34.0 % Income tax expense 3.2 % 8.5 % 32.0 % The components of deferred taxes are as follows: As of December 31, 2022 2023 2023 RMB RMB US$ Deferred tax assets: Allowance for doubtful accounts 630 3,724 524 Net operating losses carried forward 3,707 3,655 515 4,337 7,379 1,039 Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets for the Company. Thus, there were no valuation allowances as of December 31, 2022 and 2023 for the deferred tax assets. The components of deferred liabilities are as follows: As of December 31, 2022 2023 2023 RMB RMB US$ Deferred tax liabilities Intangible assets acquired through acquisition 61,236 59,818 8,425 61,236 59,818 8,425 |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Balances and Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 14. RELATED PARTY BALANCES AND TRANSACTIONS In addition to the information disclosed elsewhere in the financial statements, the principal related parties with which the Company had transactions during the years presented are as follows: Name of Related Parties Relationship with the Company Mr. He Xiaowu Chief Executive Officer and Chairman of the Board Sixiang Times (Beijing) Technology Co., Ltd. Where the Company’s executive is one of the major shareholders Enmoli Inc. Where Mr. He Xiaowu acted as director Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) Controlled by a direct relative of CEO Chengdu Brightfututure Education Technology Co.,Ltd Controlled by a direct relative of CEO Sixiang Zhuohong Private Equity LP Equity investee of the Company For the years ended December 31, 2021, 2022 and 2023, significant related party transactions were as follows: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Sixiang Times (Beijing) Technology Co., Ltd. Rental and service fees 531 - - - Enmoli Inc. Interest expense 480 - - - Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) Interest income 462 - - - Sixiang Zhuohong Private Equity LP Sold 11.5385% equity interest of Banyou to the Company - - 37,500 5,282 As of December 31, 2022 and 2023, the amounts due from related parties are as follows: 2022 2023 2023 RMB RMB US$ Amount due from related parties Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) (1) 1,052 - - Chengdu Brightfututure Education Technology Co. Ltd 63 - - Enmoli Inc. (2) - 355 50 Total 1,115 355 50 1) The balance represented loan receivable balance from Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership). The loan was interest free and due on December 31, 2022. The loan was collected on March 16, 2023. 2) The balance was collected on January 12, 2024. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | 15. SHAREHOLDERS’ EQUITY Ordinary Shares The Company is authorized to issue an unlimited number of no par value Class A ordinary shares and Class B ordinary shares For the year ended December 31, 2021 the Company issued 108,230 Class A ordinary shares to White Lion Capital LLC. The gross proceeds were RMB664,670. On November 8, 2021, the Company’s 2021 annual general meeting of shareholders (the “AGM”) approved the following shareholders’ resolutions: (i) the adoption of a dual-class share structure, pursuant to which the Company’s authorized share capital shall be re-classified and re-designed into Class A ordinary shares and Class B ordinary shares, with each Class A ordinary share being entitled to one (1) vote and each Class B ordinary share being entitled to ten (10) votes at a meeting of the shareholders or on any resolution of shareholders; and (ii) the authorization to the Company to issue up to 50,000,000 Class A Preferred Shares with such designations, powers, preferences and relative, participation, optional and other rights, if any, and such qualifications, limitations and restrictions as the directors may determine among other matters. Additionally, together with the adoption of a dual-class share structure, 2,625,058 Class A ordinary shares held by Heshine Holdings Limited have been converted into 2,625,058 Class B ordinary shares. As of December 31, 2023, the Company had 38,113,879 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding. Shares issued for SPAC and acquisitions SPAC In connection the earn-out provisions of SPAC, On March 25, 2021, the Company issued 3,000,000 for SPAC Earn-out Target 2020. On June 2, 2022, the Company issued 2,700,000 Class A ordinary shares and 300,000 Class B ordinary shares for SPAC Earn-out Target 2021 (details see shares to be issued in Note 15). Acquisition of Beelive In connection the earn-out provisions of the acquisition of Beelive, On March 25, 2021, the Company issued 540,960 Class A ordinary shares for Beelive Earn-out Target 2020. On June 2, 2022, the Company issued 540,960 Class A ordinary shares for Beelive Earn-out Target 2021. On April 7, 2023, the Company issued 507,804 Class A ordinary shares for Beelive Earn-out Target 2022 (details see shares to be issued in Note 15). Acquisition of Weiliantong In connection of the acquisition of Weiliantong, on March 3, 2022, the Company issued 3,898,511 Class A ordinary shares to the original shareholders of Weiliantong as part of total RMB180,000 worth share consideration (Note 4), which was calculated based on US$5.13 per share based on the 20 days average closing price of the Company’s Class A ordinary shares prior to the acquisition. The fair value of the shares issued approximated RMB127,000 as part of the purchase consideration. On April 7, 2023, the Company issued 487,314 Class A ordinary shares for achieving Earn-out Target 2022. Treasury Shares In October, 2022, the Company repurchased an aggregate of 794,120 Class A ordinary shares at price of US$3.01 per share, which was recorded as treasury shares. In November, 2023, the Company repurchase an aggregate of 119,725 Class A ordinary shares at price of US$3.2 per share, which was recorded as treasury shares. As of December 31, 2023, all these shares were held in an escrow account as reserve solely for potential needed. Warrants As of December 31, 2023, there were 6,023,700 warrants outstanding and exercisable, consisting of 5,653,700 public warrants issued in connection with the Company’s initial public offering,270,000 private warrants issued for a private placement simultaneously with the closing of the initial public offering. These two warrants are exercisable for one Class A ordinary shares. 100,000 warrants came from Unit Purchase Option exercised by Chardan in fiscal year 2021, these two warrants are exercisable for one Class A ordinary shares All these warrants were issued and outstanding before the SPAC Transaction and no warrants have been exercised for the year ended December 31, 2023. The Public Warrants became exercisable upon the completion of the SPAC Transaction on May 7, 2020 with exercise price of US$11.5 per full share. The Public Warrants will expire five years from February 5, 2019 (or February 5, 2024). The Company may call the warrants for redemption (excluding the Private Warrants), in whole and not in part, at a price of US$0.01 per warrant: ● at any time while the Public Warrants are exercisable, ● upon not less than 30 days’ prior written notice of redemption to each Public Warrant holder, ● if, and only if, the reported last sale price of the Class A ordinary shares equals or exceeds US$16.50 per share, for any 20 trading days within a 30-trading day period ending on the third trading day prior to the notice of redemption to Public Warrant holders, and ● if, and only if, there is a current registration statement in effect with respect to the issuance of the Class A ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis”. The exercise price and number of Class A ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. The Public Warrants may only be exercised for a whole number of shares, meaning that the Public Warrants must be exercised in multiples of two. However, the warrants will not be adjusted for issuances of Class A ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. The private warrants are identical to the public warrants with the exercise price of US$11.5 per full share and expiration by February 5, 2024, except that the private warrants and the Class A ordinary shares issuable upon the exercise of the private warrants will not be transferable, assignable or salable until after the completion of the SPAC Transaction, subject to certain limited exceptions. The private warrants may only be exercised for a whole number of shares, meaning that the private warrants must be exercised in multiples of two. Additionally, the private warrants will be exercisable on a cashless basis and will be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the private warrants are held by someone other than the initial purchasers or their permitted transferees, the private warrants will be redeemable by the Company and exercisable by such holders on the same basis as the public warrants. A summary of warrants activity for the year ended December 31, 2021, 2022 and 2023 is as follows: Number of Weighted Expiration Balance of warrants outstanding as of December 31, 2020 6,020,000 3.1 years February 5, 2024 Additional warrants upon exercise of UPO 100,000 - - Exercised (96,300 ) - - Balance of warrants outstanding as of December 31, 2021 6,023,700 2.1 years February 5, 2024 Balance of warrants outstanding as of December 31, 2022 6,023,700 1.1 years February 5, 2024 Balance of warrants outstanding as of December 31, 2023 6,023,700 0.1years February 5, 2024 Balance of warrants exercisable as of December 31, 2023 6,023,700 0.1years February 5, 2024 As of December 31, 2023, the Company had warrants exercisable for 3,011,850 Class A ordinary shares with weighted average life of 0.1 Unit Purchase Option On February 8, 2019, the Company sold to Chardan, for $100, an option to purchase up to 375,000 Units exercisable at $11.50 per Unit (or an aggregate exercise price of $4,312,500) exercisable on the completion of the SPAC Transaction on May 7, 2020. On February 20, 2019, in connection with the underwriters’ election to exercise the over-allotment option in full, the Company issued Chardan an option to purchase up to an additional 56,250 Units exercisable at $11.50 per Unit for no additional consideration. Each Unit consists of one ordinary share, one redeemable warrant and one right (together “UPO”). The unit purchase option may be exercised for cash or on a cashless basis, at the holder’s option, and expires February 5, 2024. For the year ended December 31, 2021, 100,000 UPO have been exercised for 100,000 warrants and 110,000 shares. As of December 31, 2023, the Company had UPO units exercisable for 530,000 Class A ordinary shares with weighted average life of 0.1 years and expiring on February 5, 2024. Liability Classified Warrants All of the Company’s outstanding warrants contain a contingent cash payment feature and therefore were accounted for The Company accounted for the unit purchase option, inclusive of the receipt of $100 cash payment, as an expense of the Initial Public Offering resulting in a charge directly to shareholders’ equity. The Company estimated the fair value of the unit purchase option is approximately $1,286,000, or $2.98 per Unit, using the Black-Scholes option-pricing model. The fair value of the unit purchase option granted to the underwriters was estimated as of the date of grant using the following assumptions: (1) expected volatility of 35%, (2) risk-free interest rate of 2.44% and (3) expected life of five years. The option and such units purchased pursuant to the option, as well as the Class A ordinary shares underlying such units, the rights included in such units, the Class A ordinary shares that are issuable for the rights included in such units, the warrants included in such units, and the shares underlying such warrants, have been deemed compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to Rule 5110(g)(1) of FINRA’s NASDAQ Conduct Rules. Additionally, the option may not be sold, transferred, assigned, pledged or hypothecated for a one-year period (including the foregoing 180-day period) following the date of Initial Public Offering except to any underwriter and selected dealer participating in the Initial Public Offering and their bona fide officers or partners. The option grants to holders demand and “piggy back” rights for periods of five and seven years, respectively, from the effective date of the registration statement with respect to the registration under the Securities Act of the securities directly and indirectly issuable upon exercise of the option. The Company will bear all fees and expenses attendant to registering the securities, other than underwriting commissions which will be paid for by the holders themselves. The exercise price and number of units issuable upon exercise of the option may be adjusted in certain circumstances including in the event of a stock dividend, or the Company’s recapitalization, reorganization, merger or consolidation. However, the option will not be adjusted for issuances of Class A ordinary shares at a price below its exercise price. Shares to be issued As of December 31, 2020, the earn-out liability related to SPAC Earn-out Target 2020 and Beelive Earn-out Target 2020 were met. As a result, there was 3,540,960 earn-out shares required to be issued and the Company classified the related portion of earn-out liability in aggregated of RMB200,100 as shares to be issued in the equity of the Company. On March 25, 2021, the Company issued 3,540,960 Class A ordinary shares for this achievement of earnout target. As of December 31, 2021, the earn-out liability related to SPAC Earn-out Target 2021 and Beelive Earn-out Target 2021 were met. As a result, there was 3,540,960 earn-out shares required to be issued and the Company classified the related portion of earn-out liability in aggregated of RMB128,119 as shares to be issued in the equity of the Company. On June 2, 2022, the Company issued 3,240,960 Class A ordinary shares and 300,000 Class B ordinary shares for this achievement of earnout target. As of December 31, 2022, Beelive has achieved 93.87% of the Beelive Earn-out Target 2022 and Weiliantong has achieved 100% of Weiliantong Earn-out Target 2022. As a result, there was 995,118 earn-out shares required to be issued and the Company classified the related portion of earn-out liability in aggregated of RMB13,106 as shares to be issued in the equity of the Company. On April 7, 2023, the Company issued 995,118 Class A ordinary shared for these achievement earnout targets. In addition, in connection with the acquisition of Weiliantong (Note 4), the Company is required to issue 636,691 Class A shares to Weilaijin (equivalent to RMB20,800) after received exercise notice. A s of December 31, 2023, Weiliantong has achieved 82.72% of Weiliantong Eearn-out Target 2023. As a result, there was 403,089 (487,314*82.72%) earn-out shares required to be issued and the Company classified the related portion of earn-out liability in aggregated of RMB9,960 as shares to be issued in the equity of the Company. In addition, in connection with the acquisition of Weiliantong (Note 4), the Company is required to issue 636,691 Class A shares to Weilaijin (equivalent to RMB20.8 million) after received exercise notice. On April 8, 2024, the Company issued 403,089 Class A ordinary shares for this achievement of earnout target, subsequently. 2021 Equity Incentive Plan On August 3, 2021, the Employee Share Option Committee (the “ESOP Committee”) of the Company approved a resolution which appointed the Chief Executive Officer and Chief Operating Officer as Authorized Officer of ESOP Committee to grant share options to employees, directors, advisors, consultants and service providers of the Company. In 2021, the ESOP Committee approved the granting of 2,053,783 Restricted Share Units (“RSU”) under the 2021 Equity Incentive Plan. As of December 31, 2021, 2,053,783 RSUs were issued and outstanding. For the year ended December 31, 2022, the ESOP Committee approved the granting of 61500 RSUs under the 2021 Equity Incentive Plan. For the year ended December 31, 2022, 72,713 RSUs was forfeited and 1,325,614 RSUs was vested during the year ended December 31, 2022. As of December 31, 2022, the Company had 716,956 RSUs outstanding. For the year ended December 31, 2023, the ESOP Committee approved the granting of 512,217 RSUs under the 2021 Equity Incentive Plan. For the year ended December 31,2023,21,206 RSUs was forfeited and 434,093 RSUs was vested. As of December 31, 2023, the Company had 773,874 RSUs outstanding. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Reserves and Restricted Net Assets [Abstract] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 16. STATUTORY RESERVES AND RESTRICTED NET ASSETS The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign-invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. WXBJ and WXZJ was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. As of December 31, 2022 and 2023, the Company had appointed RMB39,208 and RMB44,698 (US$6,296), respectively in its statutory reserves. Foreign exchange and other regulations in the PRC may further restrict the Company’s VIE from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include paid-in capital, additional paid-in capital and statutory reserves of the Company’s PRC Subsidiaries and the equity of VIE, as determined pursuant to PRC generally accepted accounting principles. As of December 31, 2022 and 2023, restricted net assets of the Company’s PRC subsidiaries and VIE were RMB394,521 and RMB413,117 (US$58,186). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES (a) Capital and Other Commitments The Company did not have significant capital and other commitments as of December 31, 2022 and 2023. (b) Contingencies From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS As of February 6, 2024, we have no warrants issued and outstanding. On February 5, 2024, the fifth year anniversary of the effectiveness of Wealthbridge’s registration statement relating to its initial public offering, all the warrants issued as part of the units issued in Wealthbridge’s initial public offering and the private placement consummated simultaneously with the initial public offering expired and were cancelled pursuant to the terms of the Warrant Agreement by and between Wealthbridge and Continental Stock Transfer & Trust Company, dated February 5, 2019. On April 8, 2024, the Company issued 403,089 Class A ordinary shares to Wolter Global Investment Limited for the achievement of earnout target. On March 12, 2024, the Company entered into an equity purchase agreement in Hangzhou Zhange Culture Technology Co., Ltd (“Zhange”) with Qingdao Sixiang Zhuohong Private Equity LP (“Qingdao LP”), a related party of the Company, and pursuant to the agreement, the Company shall purchase 6% equity interest of Zhange for a consideration of RMB13,500 from Qingdao LP. On March 14, 2024, the Company paid RMB13,500 to Qingdao LP. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 19. C ONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company performed a test on the restricted net assets of consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The subsidiary did not pay any dividend to the Company for the years presented. For the purpose of presenting parent only financial information, the Company records its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiary” and the income of the subsidiary is presented as “share of income of subsidiary”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The Company did not have other commitments or guarantees as of December 31, 2022 and 2023. PARENT COMPANY BALANCE SHEETS As of December 31, 2022 2023 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 3,127 23,584 3,322 Prepaid expenses and other current assets 1,245 820 115 Total current assets 4,372 24,404 3,437 Non-current assets Investments in subsidiaries and consolidated VIEs 1,170,235 1,165,326 164,134 TOTAL ASSETS 1,174,607 1,189,730 167,571 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accrued expenses and other current liabilities 1,752 2,006 283 Warrant liabilities 166 - - Current portion of contingent consideration – earn-out liability 4,336 - - Amounts due to subsidiaries 7,759 37,160 5,234 Total current liabilities 14,013 39,166 5,517 Total liabilities 14,013 39,166 5,517 Shareholders’ equity Ordinary share, no par value, unlimited Class A ordinary shares and Class B ordinary shares authorized, 36,684,668 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2022, respectively. 38,113,879 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2023, respectively. Class A ordinary shares 396,880 423,623 59,666 Class B ordinary shares 23,896 23,896 3,366 Treasury stocks (16,482 ) (19,216 ) (2,707 ) Shares to be issued 33,923 30,777 4,335 Statutory reserves 39,208 44,698 6,296 Retained earnings 665,099 628,821 88,568 Accumulated other comprehensive income 18,070 17,965 2,530 Total shareholder’s equity 1,160,594 1,150,564 162,054 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,174,607 1,189,730 167,571 PARENT COMPANY STATEMENT OF INCOME For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Equity income (loss) of subsidiaries 267,436 198,340 (4,915 ) (692 ) General administrative expense and others (33,473 ) (21,377 ) (14,923 ) (2,102 ) Research and development expenses (13,946 ) (6,522 ) (5,496 ) (774 ) Change in fair value of warrant liabilities (16,421 ) 10,776 170 24 Change in fair value of contingent consideration (33,584 ) 13,071 (5,624 ) (792 ) Net income (loss) 170,012 194,288 (30,788 ) (4,336 ) Other comprehensive income (loss) - foreign currency translation adjustment 2,313 955 (105 ) (15 ) Comprehensive income (loss) attributable to the Company’s shareholders 172,325 195,243 (30,893 ) (4,351 ) PARENT COMPANY STATEMENT OF CASH FLOWS For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Cash flows from operating activities Net income (loss) 170,012 194,288 (30,788 ) (4,336 ) Equity in (earning) loss of subsidiaries (267,436 ) (198,340 ) 4,915 692 Change in fair value of warrant liabilities 16,421 (10,776 ) (170 ) (24 ) Change in fair value of contingent consideration 33,584 (13,071 ) 5,624 792 Share based compensation 31,857 11,954 13,637 1,921 Changes in operating assets and liabilities Prepaid expense and other current assets (925 ) 72 425 60 Accrued expenses and other current liabilities 2,414 (662 ) 254 36 Net cash used in operating activities (14,073 ) (16,535 ) (6,103 ) (859 ) Cash flows from financing activities Due to related parties 14,263 35,771 29,294 4,126 Share repurchase - (16,482 ) (2,734 ) (385 ) Net cash provided by financing activities 14,263 19,289 26,560 3,741 Net increase in cash and cash equivalents 190 2,754 20,457 2,882 Cash and cash equivalents at beginning of the year 183 373 3,127 440 Cash and cash equivalents at end of the year 373 3,127 23,584 3,322 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation and principles of consolidation | (a) Basis of presentation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries, and its VIE and VIE’s subsidiaries over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All significant inter-company transactions and balances between the Company, its subsidiaries and the VIE are eliminated upon consolidation. |
Business combinations | (b) Business combinations The Company accounts for all business combinations under the purchase method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). The purchase method of accounting requires that the consideration transferred to be allocated to net assets including separately identifiable assets and liabilities the Company acquired, based on their estimated fair value. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of the cost of the acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the identifiable net assets of the acquiree, the difference is recognized directly in earnings. The determination and allocation of fair values to the identifiable net assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring considerable judgment from management. Although the Company believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from forecasted amounts and the differences could be material. |
Use of estimates | (c) Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Areas where management uses subjective judgment include, but are not limited to revenue recognition, estimating the useful lives of long-lived assets and intangible assets, valuation assumptions in performing asset impairment tests of long-lived assets, fair value of warrant liabilities and contingent liability, allowance for doubtful accounts, and valuation of deferred taxes and deferred tax assets. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Foreign currency | (d) Foreign currency The functional currency of the Company is in US dollars and the functional currency of the Company’s subsidiaries and VIEs are Renminbi (“RMB”), as determined based on the criteria of Accounting Standards Codification (“ASC”) 830 (“ASC 830”) “Foreign Currency Matters”. The reporting currency of the Company is also the RMB. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange in place at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statement of operations. Assets and liabilities of the Company translated from their respective functional currencies to the reporting currency at the exchange rates at the balance sheet dates, equity accounts are translated at historical exchange rates and revenues and expenses are translated at the average exchange rates in effect during the reporting period. The resulting foreign currency translation adjustment are recorded in other comprehensive income (loss). |
Convenience translation | (e) Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows from RMB into USD (or “US$”) as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB7.0999, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on the last trading day of December 31, 2023. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits placed with banks which are unrestricted as to withdrawal or use and have original maturities less than three months. All highly liquid investments with a stated maturity of 90 days or less from the date of purchase are classified as cash equivalents. |
Accounts receivable and allowance for credit losses | (g) Accounts receivable and allowance for credit losses Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for credit losses which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for credit losses taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the debtors as well as the age of the individual receivables balance. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. The Company adopted this guidance effective January 1, 2023. The Company makes specific bad debt provisions based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. Account balances are charged off against the allowance after all means of collection have been exhausted and the likelihood of collection is not probable. |
Investment in marketable security | (h) Investment in marketable security Marketable securities consist of investments in equity securities with readily determinable fair values. Marketable equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities, in accordance with ASC 320. The Company accounts for investments in marketable equity securities with readily determinable fair values in accordance with ASC Topic 321, Investments - Equity Securities (“ASC 321”). These investments are measured at fair value with the related gains and losses, including unrealized, recognized in investment income (loss). |
Property and equipment | (i) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation using the straight-line method over their estimated useful lives, once the asset is placed in service. The estimated useful lives are as follows: Computer and transmission equipment 3 years Furniture, fixtures and office equipment 5 years Repair and maintenance costs are charged to expense when incurred, whereas the cost of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Retirement, sale and disposals of assets are recorded by removing the cost and related accumulated depreciation with any resulting gain or loss reflected in the consolidated statements of income. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. |
Intangible assets | (j) Intangible assets Intangible assets are carried at cost less accumulated amortization and any impairment. License for Beelive platform is determined to have an infinite useful life and is not subject to amortization and tested for impairment at least annually. Intangible assets with a finite useful life are amortized using the straight-line method over the estimated economic life of the intangible assets as follows: Trademark 10 years Patent 10 years Copyright 10 years Software 3 to 10 years Licenses acquired 3 years |
Impairment of long-lived assets | (k) Impairment of long-lived assets The Company evaluates its long-lived assets or asset group, including property and equipment and intangible assets including license that has an infinite useful life, for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates for impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available for the long-lived assets. No impairment of long-lived assets was recognized for the years ended December 31 2021, 2022 and 2023. |
Goodwill | (l) Goodwill Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not subject to amortization but is monitored annually for impairment or more frequently if there are indicators of impairment. Management considers the following potential indicators of impairment: significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of acquired assets or the strategy of the Company’s overall business, significant negative industry or economic trends and a significant decline in the Company’s stock price for a sustained period. The Company performs its impairment test on annual basis. Currently, the Company’s goodwill is evaluated at the entity level as it has been determined there is one operating segment comprised of one reporting unit. When assessing goodwill for impairment the Company first performs a qualitative assessment to determine whether it is necessary to perform a quantitative analysis. If the Company determines it is unlikely that the reporting unit fair value is less than its carrying value then no quantitative assessment is performed. If the Company cannot determine that it is likely that the reporting unit fair value is more than its carrying value, then the Company performs a quantitative assessment. For the year ended December 31, 2023, the Company performed the impairment test and determined that the fair value of goodwill was more than carrying value, therefore the Company did not recognize any impairment loss on goodwill for the year ended December 31, 2023. |
Long term investment | (m) Long term investment ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The Company adopted the new financial instruments accounting standard from January 1, 2020. Equity Investments with Readily Determinable Fair Values Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. Equity investments without readily determinable fair values After the adoption of this new accounting standard, the Company elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investment in current earnings. Changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Reasonable efforts shall be made to identify price changes that are known or that can reasonably be known. Equity investments accounted for using the equity method The Company accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control, using the equity method. The Company adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. The Company assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. |
Fair value of financial instruments | (n) Fair value of financial instruments Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables included in prepaid expenses and other current assets, accounts payables, balances with related parties and other current liabilities, approximate their fair values because of the short-term maturity of these instruments. Assets and Liabilities Measured or Disclosed at Fair Value on a recurring basis The following tables represent the fair value hierarchy of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2023: As of December 31, 2022 Fair Value Measurement at the Reporting Date using Quoted price Significant Significant Total RMB RMB RMB RMB Financial assets: Investment in marketable equity security 40,548 - - 40,548 Financial liabilities: Earn-out liability from Weiliantong acquisition - - 4,336 4,336 Warrant liability 166 166 Total - - 4,502 4,502 As of December 31, 2023 Fair Value Measurement at the Reporting Date using Quoted price Significant Significant Total RMB RMB RMB RMB Financial assets: Investment in marketable equity security 31,525 - - 31,525 Financial liabilities: Earn-out liability from Weiliantong acquisition - - - - Warrant liability - - - - Total - - - - Contingent consideration – earn-out liability (i) Earn-out liability from BeeLive acquisition On August 10, 2020, the Company signed an Equity Acquisition Framework Agreement (the “BeeLive Acquisition Agreement”) to acquire 100% equity interest in Sciscape International Limited which holds the platform BeeLive International and 100% equity interest in Tianjin Guangju Dingfei Technology Co., Ltd. which holds BeeLive Chinese (MiFeng). In connection with the acquisition of Beelive, the previous shareholders of BeeLive may be entitled to receive earnout shares as follows: (i) if the BeeLive Company’s total annual revenue is no less than RMB336,600 in Year 2020,the previous shareholder will be entitled to received additional 540,960 Class A ordinary shares (“Beelive Earn-out Target 2020”); (ii) if the BeeLive Companies’ total annual revenue is no less than RMB 460,600 in Year 2021 (“Beelive Earn-out Target 2021”), the previous shareholder will be entitled to received additional 540,960 Class A ordinary shares; and (iii) if the BeeLive Companies’ total annual revenue is no less than RMB580,900 in Year 2022 (“Beelive Earn-out Target 2022”), the previous shareholder will be entitled to received additional 540,960 Class A ordinary shares. If the total annual revenue of BeeLive Company in a particular performance year does not reach the target revenue as specified above, but is equal to or more than 80% of the target revenue, the previous shareholder will be entitled to a reduced number of the earn-out shares. For the years ended December 31, 2021 and 2022, the Beelive Earn-out Target 2021 and 2022 were met and the Company issued the related earn-out shares accordingly (Note 15). Upon the closing of the BeeLive acquisition, the Company recorded the fair value of the contingent consideration resulted from earn-out liability and recorded the changes in fair value in earnings. The Company determined the fair value of the contingent consideration using binomial model, which includes significant unobservable inputs that are classified as level 3 in the fair value hierarchy. A binomial model uses random numbers, together with the assumption of volatility, risk-free rate, expected dividend rate, to generate individual stock price paths. The major assumptions used in the binomial model are as follows: December 31, December 31, Risk-free interest rate 0.38 % 4.73 % Share price $ 5.68 $ 1.97 Probability 20% - 50 % 20% - 50 % (ii) Earn-out liability from Weiliantong acquisition In connection with the acquisition of Weiliantong (Note 4), the previous shareholders of Weiliantong may be entitled to receive earnout shares as follows: (i) if the Weiliantong Company’s total annual revenue is no less than RMB280,000 in 2022, the previous shareholder will be entitled to received additional 10% of consideration( Class A ordinary shares) (“Weiliantong Earn-out Target 2022”); (ii) if Weiliantong total annual revenue is no less than RMB 360,000 in Year 2023, the previous shareholder will be entitled to received additional 10% of consideration (Class A ordinary shares); If the total annual revenue of Weiliantong Company in a particular performance year does not reach the target revenue as specified above, but is equal to or more than 80% of the target revenue, the previous shareholder will be entitled to a reduced number of the earn-out shares. For the years ended December 31, 2022 and 2023, the Weiliantong Earn-out Target 2022 was met and 2023 was partially met and the Company issued the related earn-out shares accordingly (Note 15). Upon the closing of the Weiliantong acquisition, the Company recorded the fair value of the contingent consideration resulted from earn-out liability and recorded the changes in fair value in earnings. The Company determined the fair value of the contingent consideration using binomial model, which includes significant unobservable inputs that are classified as level 3 in the fair value hierarchy. A binomial model uses random numbers, together with the assumption of volatility, risk-free rate, expected dividend rate, to generate individual stock price paths. The major assumptions used are as follows: January 1, December 31, Risk-free interest rate 0.39-0.73 % 4.73 % Share price $ 5.13 $ 1.97 Probability 20% - 50 % 20% - 50 % The Company measures contingent consideration – earn-out liability at fair value on a recurring basis as of the dates of acquisition and December 31, 2022 and 2023. The following table presents the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis: As of December 31, 2022, Beelive has achieved 93.87% of the Beelive Earn-out Target 2022 and Weiliantong has achieved 100% of Weiliantong Earn-out Target 2022. As a result, the Company classified the related portion of earn-out liability in aggregated of RMB13,106 as shares to be issued in the equity of the Company. As of December 31, 2022, there was 995,118 earn-out shares required to be issued and the Company included it in the calculation of earnings per share. Upon issuance of this report, a total of 507,804 shares (540,960 * 93.87%) has been issued to Cosmic Soar, the previous shareholder of Beelieve and a total of 487,314 share has been issue to Wolter Global, the previous shareholder of Weilingtong. As of December 31, 2023, Weiliantong has achieved 82.72% of Weiliantong Earn-out Target 2023. As a result, the Company classified the related portion of earn-out liability in aggregated of RMB9,960 as shares to be issued in the equity of the Company. As of December 31, 2023, there was 403,089 earn-out shares required to be issued and the Company included it in the calculation of earnings per share. The Company did not transfer any assets or liabilities in or out of Level 3 during the years ended December 31, 2021, 2022 and 2023. The following is a reconciliation of the beginning and ending balances for contingent consideration measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2021, 2022 and 2023: Amount RMB Balance at January 1, 2021 107,299 Fair value change 33,584 Exchange difference (2,126 ) Reclassification to shares to be issued (128,119 ) Balance at December 31, 2021 10,638 Contingent consideration resulting from Weiliantong acquisition 19,875 Fair value change (13,071 ) Reclassification to shares to be issued (13,106 ) Balance at December 31, 2022 4,336 Fair value change 5,624 Reclassification to shares to be issued (9,960 ) Balance at December 31, 2023 - The aggregated contingent considerations for the earn-out liabilities were RMB4,336 and nil Warrant liabilities The Company’s warrants assumed from SPAC acquisition on May 7,2020, the date of the closing of SPAC Transaction, that have complex terms, such as a clause in which the warrant agreements contain a cash settlement provision whereby the holders could settle the warrants for cash upon a fundamental transaction that is considered outside of the control of management are considered to be a derivative as contemplated in ASC 815-40. The warrant is recorded as derivative liability on the consolidated balance sheet upon the SPAC transaction and is adjusted to its fair value at the end of each reporting period, with the change being recorded as other expense or gain in accordance with ASC 820. The warrant liabilities were measured and recorded on a recurring basis. The Company determined the fair value of the contingent consideration using binomial model, which includes significant unobservable inputs that are classified as level 3 in the fair value hierarchy. A binomial model uses random numbers, together with the assumption of volatility, risk-free rate, expected dividend rate, to generate individual stock price paths. The major assumptions used in the binomial model are as follows: December 31, December 31, December 31, Risk-free interest rate 0.75 % 4.70 % 5.58 % Share price $ 5.68 $ 1.97 $ 3.48 Volatility 53 % 68 % 60 % The following table sets forth the establishment of the Company’s Level 3 warrant liabilities, as well as a summary of the changes in the fair value: Amount RMB Balance as January 1, 2021 29,558 Fair value change (16,421 ) Exercised (115 ) Exchange difference (2,698 ) Balance as of December 31, 2021 10,324 Fair value change (10,776 ) Exchange difference 618 Balance as of December 31, 2022 166 Fair value change (170 ) Exchange difference 4 Balance as of December 31, 2023 - |
Revenue recognition | (o) Revenue recognition On January 1, 2019, the Company adopted ASC 606, “Revenue from Contracts with Customers” using the modified retrospective method applied to those contracts which were not completed as of January 1, 2019. Results for reporting periods beginning after January 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. Based on the Company’s assessment, the adoption of ASC 606 did not result in any adjustment on the Company’s consolidated financial statements, and there were no material differences between the Company’s adoption of ASC 606 and its historic accounting under ASC 605. Revenues are recognized when control of the promised virtual items or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those virtual items or services. Revenue is recorded, net of sales related taxes and surcharges. Live streaming The Company is principally engaged in operating its own live streaming platforms, which enable broadcasters and viewers to interact with each other during live streaming. The Company is responsible for providing a technological infrastructure to enable the broadcasters, online users and viewers to interact through live streaming platforms. All the platforms can be accessed for free. The Company mainly derives the revenue from sales of virtual items in the platforms. The Company has a recharge system for users to purchase the Company’s virtual currency then purchase virtual items for use. Users can recharge via various online third-party payment platforms, including WeChat Pay, AliPay and other payment platforms. Virtual currency is non-refundable and often consumed soon after it is purchased. The Company designs, creates and offers various virtual items for sales to users with pre-determined stand-alone selling price. Virtual items are categorized as consumable and time-based items. Consumable items are consumed upon purchase and use while time-based items could be used for a fixed period of time. Users can purchase and present consumable items to broadcasters to show support for their favorite broadcasters, or purchase time-based virtual items for one or multiple months for a monthly fee, which provide users with recognized status, such as priority speaking rights or special symbols over a period of time. The Company shares a portion of the sales proceeds of virtual items (“revenue sharing fee”) with broadcasters and talent agencies in accordance with their revenue sharing arrangements. Broadcasters, who do not have revenue sharing arrangements with the Company, are not entitled to any revenue sharing fee. The Company also utilizes third-party payment collection channels, which charges the payment handling cost for users to purchase the virtual currency directly from it. The payment handling costs are recorded in cost of sales. The Company evaluates and determines that it is the principal and views users to be its customers, because the Company controls the virtual items before they are transferred to users. Its control is evidenced by the Company’s sole ability to monetize the virtual items before they are transferred to users, and is further supported by the Company being primarily responsible to the users for the delivery of the virtual items as well as having full discretion in establishing pricing for the virtual items. Accordingly, the Company reports live streaming revenues on a gross basis with the amounts billed to users recorded as revenues and revenue sharing fee paid to broadcasters and related agencies recorded as cost of revenues. Sales proceeds are initially recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. The Company has determined that each individual virtual item represents a distinct performance obligation. Accordingly, live streaming revenue is recognized immediately when the consumable virtual item is used, or in the case of time-based virtual items, revenue is recognized over the fixed period on a straight-line basis. The Company does not have further obligations to the user after the virtual items are consumed. The Company’s live streaming virtual items are generally sold without right of return and the Company does not provide any other credit and incentive to its users. Unconsumed virtual currency is recorded as deferred revenue. The Company also cooperates with independent third-party distributors to sell virtual currency through annual distribution agreements with these distributors. Third-party distributors purchase virtual currency from the Company with no refund provision according to the annual distribution agreements, and they are responsible for selling the virtual currency to end users. They may engage their own sales representatives, which are referred to as “sales agents” to directly sell to individual end users. The Company has no control over such “sales agents”. The Company has discretion to determine the price of the virtual currency sold to its third-party distributors, but has no discretion as to the price at which virtual currency is sold by its third-party distributors to the sales agents. Technical services and others The Company generated technical revenues from providing technical development, advisory and others, which accounts for only approximately 2% or less of revenue for the years ended December 31, 2021, 2022 and 2023. As the amount was immaterial, and short-term in nature, which is usually less than six months, the Company recognizes revenue when service were rendered and accepted by customers. Practical expedients and exemptions The Company’s contracts have an original duration of one year or less. Accordingly, the Company does not disclose the value of unsatisfied performance obligations. Revenue by types and platforms The following table sets forth types of our revenue for the periods indicated: For the years ended December 31, 2021 2022 2023 2023 Amounts in thousands of RMB and USD RMB RMB RMB US$ Live streaming - consumable virtual items revenue 1,617,056 1,886,179 1,420,258 200,040 Live streaming - time based virtual item revenue 32,905 27,683 25,004 3,522 Technical services and others 19,397 39,395 19,609 2,761 Total revenue 1,669,358 1,953,257 1,464,871 206,323 As of December 31, 2023, we operated five brands of live streaming platforms, consisting of: Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming (including BeeLive Chinese version – Mifeng) and Hongle Live Streaming. The following table sets forth our revenue by platforms for the periods indicated: For the years ended December 31, 2021 2022 2023 2023 Amounts in thousands of RMB and USD RMB RMB RMB US$ Showself 595,004 521,155 334,186 47,070 Lehai 242,910 241,851 263,517 37,116 Haixiu 326,661 317,953 245,049 34,514 Beelive 485,386 545,296 304,730 42,921 Hongle - 287,607 297,780 41,941 Technical services and others 19,397 39,395 19,609 2,761 TOTAL 1,669,358 1,953,257 1,464,871 206,323 Contract balances Contract balances include accounts receivable and deferred revenue. Accounts receivable primarily represent cash due from distributors and are recorded when the right to consideration is unconditional. The allowance for doubtful accounts reflects the best estimate of probable losses inherent to the account receivable balance. Deferred revenue primarily includes unconsumed virtual currency and unamortized revenue from time-based virtual items in the Company’s platforms, where there is still an obligation to be provided by the Company, which will be recognized as revenue when all of the revenue recognition criteria are met. Due to the generally short-term duration of the relevant contracts, all performance obligations are satisfied within one year. |
Government subsidies | (p) Government subsidies Government subsidies are primarily referred to the amounts received from various levels of local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the region. The grants are determined at the discretion of the relevant government authority and there are no restrictions on their use. The government subsidies amounted to RMB67, RMB10,094, RMB6,853 (US$965) for the years ended December 31, 2021, 2022 and 2023 are recorded as other income. |
Cost of revenues | (q) Cost of revenues Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists primarily of (i) revenue sharing fees and content costs, including payments to various broadcasters, and content providers, (ii) bandwidth costs, (iii) salaries and welfare, (iv) depreciation and amortization expense for servers and other equipment, and intangibles directly related to operating the platform, (v) user acquisition costs (vi) payment handling costs, and (vii) other costs. |
Research and development expenses | (r) Research and development expenses Research and development expenses primarily consist of (1) salaries and benefits expenses incurred for research and development personnel, and (2) rental, general expenses and depreciation expenses associated with the research and development activities. Expenditures incurred during the research phase are expensed as incurred and no research and development expenses were capitalized as of December 31, 2022 and 2023. |
Sales and marketing expenses | (s) Sales and marketing expenses Sales and marketing expenses consist primarily of advertising and market promotion expenses. The advertising and market promotion expenses amounted to RMB4,794, RMB2,118 and RMB1,350 (US$190) for the years ended December 31, 2021, 2022 and 2023, respectively. |
Employee benefits | (t) Employee benefits The full-time employees of the Company’s PRC subsidiaries are entitled to staff welfare benefits including medical care, housing fund, unemployment insurance and pension benefits, which are government mandated defined contribution plans. These entities are required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. The total amounts for such employee benefits were RMB14,370, RMB19,261 and RMB18,181 (US$2,561) for the years ended December 31, 2021, 2022 and 2023, respectively. |
Leases | (u) Leases The Company adopted Topic 842 on January 1, 2022 using the modified retrospective transition approach. The Company has lease contracts office space under operating leases. The Company determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at lease commencement. The Company measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Company estimates its incremental borrowing rate based on an analysis of weighted average interest rate of its own bank loans. The Company measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Company begins recognizing lease expense when the lessor makes the underlying asset available to the Company. For leases with lease term less than one year (short-term leases), the Company records operating lease expense in its consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Income taxes | (v) Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The Company follows the liability method in accounting for income taxes in accordance to ASC topic 740 (“ASC 740”), 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. A valuation allowance would be recorded against 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 guidance on accounting for uncertainties in income taxes 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. Guidance was also provided 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. Significant judgment is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The Company recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive loss. The Company did not recognize any interest and penalties associated with uncertain tax positions as of December 31, 2022 and 2023. As of December 31, 2022 and 2023, the Company did not have any significant unrecognized uncertain tax positions. |
Value added tax (“VAT”) | (w) Value added tax (“VAT”) Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of service provided. 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 in tax payable. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Statutory reserves | (x) Statutory reserves The Company’s PRC entities are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to China’s Foreign Investment Enterprises, the Company’s subsidiaries registered as WFOEs have to make appropriations from its after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People’s Republic of China (“PRC GAAP”) to reserve funds including general reserve fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the Company. Appropriation to the staff bonus and welfare fund is at the Company’s discretion. In addition, in accordance with the Company Laws of the PRC, the Company’s entities registered as PRC domestic companies must take appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of after-tax profits as determined under the PRC GAAP. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the Company. Appropriation to the discretionary surplus fund is made at the discretion of the Company. The use of the general reserve fund, statutory surplus fund and discretionary surplus fund are restricted to the off-setting of losses or increasing capital of the respective company. The staff bonus and welfare fund is liability in nature and is restricted to fund payments of special bonus to staff and for the collective welfare of employees. All these reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. |
Earnings (loss) per share | (y) Earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Contingently issuable shares were not included in the computation of diluted shares outstanding if they were not issuable should the end of the reporting period have been the end of the contingency period. For the years ended December 31, 2021, there was 3,540,960 contractual issuable shares related to SPAC and Beelive Earn-out Target 2021 achieved as of December 31, 2021, which was fully issued in the year ended December 31, 2022. For the year ended December 31, 2022, there was 995,118 contractual issuable shares related to Beelive Earn-out and Weiliantong Earn-out Target 2022 achieved as of December 31, 2022, and 636,691 contractual issuable shares related to Weiliantong acquisition. 995,118 shares related to Beelive Earn-out and Weiliantong Earn-out Target 2022 was issued in the year ended December 31, 2023. For the year ended December 31, 2023, there was 403,089 contractual issuable shares related to Weiliantong Earn-out Target 2023 achieved as of December 31, 2023, and 636,691 contractual issuable shares related to Weiliantong acquisition. On April 8, 2024, 403,089 shares related to Weiliantong Earn-out Target 2023 was issued, subsequently. |
Non-controlling interests | (z) Non-controlling interests As of December 31, 2023, non-controlling interests represent 49% non-controlling shareholders’ interests in HCHY, 49% non-controlling shareholders’ interests in Scienjoy Verse and 10% non-controlling shareholders’ interests in SJ Verse. The non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interests in the operating results of the Company are presented on the face of the consolidated statements of comprehensive income (loss) as an allocation of the total income or loss between non-controlling interest holders and the shareholders of the Company. |
Segment reporting | (aa) Segment reporting The Company follows ASC 280, “ Segment Reporting.” |
Recent accounting pronouncements | (bb) Recent accounting pronouncements On June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments — Credit Losses,” “ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses,” “Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” and “ASU No. 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief,” which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after Dec. 15, 2019 for public business entities that meet the definition of an SEC filer, excluding entities eligible to be SRCs as defined by the SEC. All other entities, ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2022. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, “‘Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 will have a material effect on the consolidated financial statements. In June 2022, the FASB issued ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject to contractual sale restrictions. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. As an emerging growth company, the standard is effective for the for the year ended December 31, 2025. The is in the process of evaluating the impact of the new guidance on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have a material impact on the consolidated financial position, statements of operations and cash flows. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Subsidiaries of the Company and VIEs | Subsidiaries of the Company and VIEs where the Company is the primary beneficiary include the following: Subsidiaries Date of Place of Percentage of Principal Scienjoy Inc. February 23, 2017 Cayman Islands 100% Holding Company Scienjoy Pte. Ltd. (“Scienjoy SG”) July 25, 2023 Singapore 100% Holding Company Scienjoy International Limited (“Scienjoy HK”) May 18, 2017 Hong Kong 100% Holding Company Scienjoy BeeLive Limited (formerly known as Sciscape International Limited, “SIL”) December 18, 2017 Hong Kong 100% Live streaming platform Golden Shield Enterprises Limited (“Golden Shield”) September 28, 2021 British Virgin Islands 100% Holding Company Scienjoy Verse Tech Ltd (“Scienjoy Verse”) (a 51% owned subsidiary of Scienjoy SG through entrust agreement between Scienjoy SG and Mr Xiaowu He, Chief Executive Officer and Chairman of the Board) September 18, 2023 Dubai 51% Holding Company Scienjoy Meta Technology LLC (“Scienjoy Meta”) (a wholly owned subsidiary of Scienjoy Verse) October 3, 2023 Dubai 51% Metaverse business SJ Verse Global Media LLC (“SJ Verse”) (a 90% owned subsidiary of Scienjoy Verse) May 20, 2020 Dubai 45.9% Multi-channel network business Sixiang Wuxian (Beijing) Technology Co., Ltd. (“WXBJ”) (a wholly owned subsidiary of Scienjoy HK) October 17, 2017 The PRC 100% Holding Company Sixiang Zhihui (Beijing) Technology Co., Ltd. (“ZH”) (a wholly owned subsidiary of WXBJ) July 5, 2018 The PRC 100% Holding Company Sixiang Yingyue (Shanghai) Technology Co., Ltd(“SXYY”) (a wholly owned subsidiary of WXBJ) June 30, 2022 The PRC 100% Information technology Holgus Sixiang Information Technology Co., Ltd. (“Holgus X”) (a wholly owned subsidiary of ZH) May 9, 2017 The PRC 100% Live streaming platform Kashgar Sixiang Times Internet Technology Co., Ltd. (“Kashgar Times”) (a wholly owned subsidiary of ZH) March 2, 2016 The PRC 100% Live streaming platform Kashgar Sixiang Lehong Information Technology Co., Ltd (“Kashgar Lehong”) (a wholly owned subsidiary of ZH) July 23, 2020 The PRC 100% Information technology Holgus Sixiang Haohan Internet Technology Co., Ltd. (“Holgus H”) (a wholly owned subsidiary of ZH) December 11, 2020 The PRC 100% Information technology Sixiang ZhiHui (Hainan) Technology Co., Ltd (“ZHHN”) (a wholly owned subsidiary of ZH) December 23, 2020 The PRC 100% Live streaming platform Sixiang Wuxian (Zhejiang) Culture Technology Co., Ltd (“WXZJ”) (a wholly owned subsidiary of Scienjoy HK) April 28, 2022 The PRC 100% Information technology Sixiang Zhihui (Zhejiang) Culture Technology Co., Ltd (“ZHZJ”) (a wholly owned subsidiary of WXZJ) January 4, 2022 The PRC 100% Information technology VIEs Zhihui Qiyuan (Beijing) Technology Co., Ltd. (“QY”) (Controlled through contractual agreements by WXBJ) January 22, 2019 The PRC 100% Holding Company Beijing Sixiang Shiguang Technology Co., Ltd. (“SG”) (a wholly owned subsidiary of QY) October 28, 2011 The PRC 100% Live streaming platform Hai Xiu (Beijing) Technology Co., Ltd. (“HX”) (a wholly owned subsidiary of QY) April 18, 2016 The PRC 100% Live streaming platform Beijing Le Hai Technology Co., Ltd. (“LH”) (a wholly owned subsidiary of QY) June 16, 2015 The PRC 100% Live streaming platform Sixiang Mifeng (Tianjin) Technology Co., Ltd (“DF”, formerly known as Tianjin Guangju Dingfei Technology Co., Ltd) (a wholly owned subsidiary of QY) August 8, 2016 The PRC 100% Live streaming platform Changxiang Infinite Technology (Beijing) Co., Ltd. (“CX”) (a wholly owned subsidiary of DF) September 22, 2016 The PRC 100% Live streaming platform Zhihui QiYuan (Hainan) Investment Co., Ltd (“QYHN”) (a wholly owned subsidiary of QY) March 2, 2021 The PRC 100% Live streaming platform Huayu Hefeng (Qingdao) Technology Co., Ltd (“HYHF”) (a wholly owned subsidiary of SG) September 29, 2021 The PRC 100% Live streaming platform Beijing Weiliantong Technology Co., Ltd.(“WLT”) (a wholly owned subsidiary of QY) July 28, 2015 The PRC 100% Live streaming platform Chuangda Zhihui (Beijing) Technology Co., Ltd.(“CDZH”) (a wholly owned subsidiary of SG) November 30, 2015 The PRC 100% Live streaming platform Beijing Huayi Dongchen Technology Co., Ltd. (“HYDC”) (a wholly owned subsidiary of CDZH) February 6, 2015 The PRC 100% Live streaming platform Hongcheng Huiying (Zhejiang)Technology Industry Development Co., Ltd(“HCHY”) (a 51% owned subsidiary of QYHN) February 15, 2022 The PRC 51% Live streaming platform Sixiang Qiyuan (Hangzhou) Culture Technology Co., Ltd (“QYHZ”) (Controlled through contractual agreements by WXZJ) March 30, 2022 The PRC 100% Holding Company Xiuli (Zhejiang) Culture Technology Co., Ltd (“XLZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform Leku (Zhejiang) Culture Technology Co., Ltd (“LKZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform Haifan (Zhejiang) Culture Technology Co., Ltd (“HFZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform Xiangfeng (Zhejiang) Culture Technology Co., Ltd (“XFZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform Hongren (Zhejiang) Culture Technology Co., Ltd (“HRZJ”) (a wholly owned subsidiary of QYHZ) April 7, 2022 The PRC 100% Live streaming platform |
Schedule of Financial Information of the Consolidated VIE and its Subsidiaries | The following tables represent the financial information of the consolidated VIE and its subsidiaries as of December 31, 2022 and 2023 before eliminating the intercompany balances and transactions between the VIE and other entities within the Company: As of December 31, 2022 2023 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 114,478 115,322 16,243 Accounts receivable, net 165,419 198,709 27,988 Prepaid expenses and other current assets 101,684 65,751 9,261 Amounts due from related parties 1,052 - - Amounts due from inter-companies (1) 143,968 173,545 24,443 Total current assets 526,601 553,327 77,935 Non-current assets Property and equipment, net 1,871 1,356 191 Intangible assets, net 418,893 412,008 58,030 Goodwill 172,781 172,781 24,336 Deferred tax assets 3,649 6,135 864 Long term deposits and other assets 874 671 95 Long term investments 381,279 380,869 53,644 Right of use assets-operating lease 19,209 12,157 1,712 Total non-current assets 998,556 985,977 138,872 TOTAL ASSETS 1,525,157 1,539,304 216,807 LIABILITIES Current liabilities Accounts payable 80,564 53,545 7,543 Deferred revenue 62,567 81,503 11,479 Accrued salary and employee benefits 7,942 10,397 1,464 Accrued expenses and other current liabilities 7,014 11,300 1,592 Income tax payable 12,538 10,530 1,483 Amounts due to inter-companies (1) 389,400 424,856 59,840 Current portion of contingent consideration – earn-out liability 4,336 - - Lease liability-operating lease -current 7,174 7,974 1,123 Total current liabilities 571,535 600,105 84,524 Non-current liabilities Deferred tax liabilities 61,236 59,818 8,425 Lease liabilities-operating lease -non-current 12,773 4,798 676 Total non-current liabilities 74,009 64,616 9,101 TOTAL LIABILITIES 645,544 664,721 93,625 (1) Amount due from/to inter-companies consist of intercompany receivables/payables to the other companies within the Company. |
Schedule of Consolidated Statements of Income | Summarized below is the information related to the financial performance of the VIE reported in the Company’s consolidated statements of income for the years ended December 31, 2021, 2022 and 2023, respectively: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Net revenues 1,198,273 1,291,701 1,215,582 171,211 Third party customers 1,164,317 1,291,602 1,215,582 171,211 Inter-companies 33,956 99 - - Net income (loss) 102,042 143,651 (14,991 ) (2,113 ) |
Schedule of Consolidated Statements of Cash Flow Activities | For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Net cash provided by operating activities 70,255 155,897 42,562 5,995 Net cash used in investing activities (250,714 ) (122,236 ) (42,554 ) (5,994 ) Net cash provided by (used in) financing activities 179,585 (198 ) 836 118 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | The estimated useful lives are as follows: Computer and transmission equipment 3 years Furniture, fixtures and office equipment 5 years |
Schedule of Estimated Economic Life of the Intangible Assets | Intangible assets with a finite useful life are amortized using the straight-line method over the estimated economic life of the intangible assets as follows: Trademark 10 years Patent 10 years Copyright 10 years Software 3 to 10 years Licenses acquired 3 years |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables represent the fair value hierarchy of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2023: As of December 31, 2022 Fair Value Measurement at the Reporting Date using Quoted price Significant Significant Total RMB RMB RMB RMB Financial assets: Investment in marketable equity security 40,548 - - 40,548 Financial liabilities: Earn-out liability from Weiliantong acquisition - - 4,336 4,336 Warrant liability 166 166 Total - - 4,502 4,502 As of December 31, 2023 Fair Value Measurement at the Reporting Date using Quoted price Significant Significant Total RMB RMB RMB RMB Financial assets: Investment in marketable equity security 31,525 - - 31,525 Financial liabilities: Earn-out liability from Weiliantong acquisition - - - - Warrant liability - - - - Total - - - - |
Schedule of Major Assumptions Used in the Binomial Model | The major assumptions used in the binomial model are as follows: December 31, December 31, Risk-free interest rate 0.38 % 4.73 % Share price $ 5.68 $ 1.97 Probability 20% - 50 % 20% - 50 % January 1, December 31, Risk-free interest rate 0.39-0.73 % 4.73 % Share price $ 5.13 $ 1.97 Probability 20% - 50 % 20% - 50 % December 31, December 31, December 31, Risk-free interest rate 0.75 % 4.70 % 5.58 % Share price $ 5.68 $ 1.97 $ 3.48 Volatility 53 % 68 % 60 % |
Schedule of fair value on a recurring basis using significant unobservable inputs | The following is a reconciliation of the beginning and ending balances for contingent consideration measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2021, 2022 and 2023: Amount RMB Balance at January 1, 2021 107,299 Fair value change 33,584 Exchange difference (2,126 ) Reclassification to shares to be issued (128,119 ) Balance at December 31, 2021 10,638 Contingent consideration resulting from Weiliantong acquisition 19,875 Fair value change (13,071 ) Reclassification to shares to be issued (13,106 ) Balance at December 31, 2022 4,336 Fair value change 5,624 Reclassification to shares to be issued (9,960 ) Balance at December 31, 2023 - The following table sets forth the establishment of the Company’s Level 3 warrant liabilities, as well as a summary of the changes in the fair value: Amount RMB Balance as January 1, 2021 29,558 Fair value change (16,421 ) Exercised (115 ) Exchange difference (2,698 ) Balance as of December 31, 2021 10,324 Fair value change (10,776 ) Exchange difference 618 Balance as of December 31, 2022 166 Fair value change (170 ) Exchange difference 4 Balance as of December 31, 2023 - |
Schedule of Forth Types of Our Revenue | The following table sets forth types of our revenue for the periods indicated: For the years ended December 31, 2021 2022 2023 2023 Amounts in thousands of RMB and USD RMB RMB RMB US$ Live streaming - consumable virtual items revenue 1,617,056 1,886,179 1,420,258 200,040 Live streaming - time based virtual item revenue 32,905 27,683 25,004 3,522 Technical services and others 19,397 39,395 19,609 2,761 Total revenue 1,669,358 1,953,257 1,464,871 206,323 |
Schedule of Sets Forth Our Revenue | The following table sets forth our revenue by platforms for the periods indicated: For the years ended December 31, 2021 2022 2023 2023 Amounts in thousands of RMB and USD RMB RMB RMB US$ Showself 595,004 521,155 334,186 47,070 Lehai 242,910 241,851 263,517 37,116 Haixiu 326,661 317,953 245,049 34,514 Beelive 485,386 545,296 304,730 42,921 Hongle - 287,607 297,780 41,941 Technical services and others 19,397 39,395 19,609 2,761 TOTAL 1,669,358 1,953,257 1,464,871 206,323 |
Acquisition (Tables)
Acquisition (Tables) - Weiliantong [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Acquisition [Abstract] | |
Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company. Amount RMB Cash acquired 9,497 Accounts receivable, net 937 Prepaid expenses and other current assets 893 Deferred tax assets-current 6,163 17,490 Property and equipment, net 163 Intangible assets, net 190,021 Long term deposits and other non-current assets 136 Goodwill 75,742 Total assets 283,552 Current liabilities 101,594 Total liabilities 101,594 Total consideration 181,958 Amount RMB Cash acquired 168 Accounts receivable, net 97 Prepaid expenses and other current assets 15 Amounts due from related parties 6,563 6,843 Intangible assets, net 100 Goodwill 4,971 Total assets 11,914 Current liabilities 11,814 Total liabilities 11,814 Total consideration 100 Amount RMB US$ Cash acquired 212 30 Prepaid expenses and other current assets 104 15 316 45 Property and equipment, net 270 38 Goodwill 9,686 1,364 Total assets 10,272 1,447 Current liabilities 303 42 Non-current liabilities 3,165 446 Total liabilities 3,468 488 10% Equity Value with non-controlling interests (288 ) (41 ) Total consideration 7,092 1,000 |
Schedule of Pro Forma Results of Operations | The pro forma results have been prepared for comparative purpose only based on management’s best estimate and do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred as of the beginning of period: For the RMB Pro forma revenue 1,860,448 Pro forma gross profit 332,864 Pro forma income from operations 179,664 Pro forma net income 184,552 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable and Allowance for Credit Losses | Accounts receivable and allowance for credit losses consist of the following: As of December 31, 2022 2023 2023 RMB RMB US$ Accounts receivable 320,203 266,076 37,476 Less: allowance for credit losses (3,546 ) (5,097 ) (718 ) Accounts receivable, net 316,657 260,979 36,758 |
Schedule of Analysis of the Allowance for Credit Losses | An analysis of the allowance for credit losses is as follows: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Balance, beginning of year 3,813 2,215 3,546 499 Bad debt allowances from acquisition - (1,459 ) - - Additions (recovery) (1,592 ) 2,739 1,530 216 Exchange difference (6 ) 51 21 3 Balance, end of year 2,215 3,546 5,097 718 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: As of December 31, 2022 2023 2023 RMB RMB US$ VAT recoverable 25,004 25,221 3,552 Prepaid expense 9,679 6,019 848 Prepayment for property and equipment (1) 34,000 - - Investment buyback receivable (2) 30,000 30,000 4,225 Loan receivable (3) 15,000 16,200 2,282 Other receivables 1,487 1,213 171 Prepaid expenses and other current assets 115,170 78,653 11,078 (1) The Company terminated the related purchases after December 31, 2022 and the prepayment balance of RMB34,000 was fully refunded and collected by April 30, 2023. (2) The Company invested RMB30,000 in Yieryi for its 12% equity interest on August 17, 2021. As part of the Framework Agreement signed on December 29, 2021, one of the shareholders of Yieryi bought such equity interest back from the Company for RMB30,000. On August 25, 2023, such shareholder and his related party pledged their ownership of 1.3 million ordinary shares of the Company to ensure the recoverability of the receivable balance. On March 22, 2024, such shareholder and his related party further pledged their ownership of 2,969,114 ordinary shares of the Company to ensure the recoverability of the receivable balance, subsequently. (3) (i) On October 20, 2021, the Company lent RMB8,000 to Jiada Hexin (Beijing) Technology Co., Ltd for working capital purpose. The loan was from October 20, 2021 to December 31, 2022 with monthly interest rate of 0.2% from October 20, 2021 to December 31, 2021 and monthly interest rate of 0.5% from January 1, 2022 to December 31, 2022 , On April 11, 2022, the Company lent RMB7,000 to Jiada Hexin (Beijing) Technology Co., Ltd for working capital purpose. The loan was from April 11, 2022 to December 31, 2023 with monthly interest rate of 0.2% from April 11, 2022 to December 31, 2022 and monthly interest rate of 0.5% from January 1, 2023 to December 31, 2023. Due to continuous loss in Jiada, the Company fully impaired loan receivable of RMB15,000 and related interest receivable of RMB1,335 for the year ended December 31, 2023. (ii) On March 2, 2023, the Company lent RMB15,000 to Hangzhou Doujin Information Technology Co., Ltd for working capital purpose. The loan term was for one year with daily interest rate of 0.02%. The loan was fully repaid as of March 21, 2024, subsequently. (iii) On October 10, 2023, the Company lent RMB1,200 to Zhejiang Mengxiang Zhixing Cultural Technology Co., Ltd. for its for working capital purpose. The loan term was for one year with daily interest rate of 0.02%. The loan was fully repaid as of March 22, 2024, subsequently. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, including those held under capital leases, consists of the following: As of December 31, 2022 2023 2023 RMB RMB US$ At cost: Computer and transmission equipment 8,953 9,521 1,341 Furniture, fixtures and office equipment 1,937 1,931 272 Total 10,890 11,452 1,613 Less: accumulated depreciation (8,155 ) (9,259 ) (1,304 ) Property and equipment, net 2,735 2,193 309 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Intangible assets, consists of the following: As of December 31, 2022 2023 2023 RMB RMB US$ At cost: Trademark 50,102 49,875 7,026 Patent 122 122 17 Copyright 172 214 30 Software 9,985 9,993 1,407 License acquired 371,700 371,700 52,353 Total 432,081 431,904 60,833 Less: accumulated amortization (13,026 ) (19,750 ) (2,782 ) Intangible assets, net 419,055 412,154 58,051 |
Schedule of Estimated Annual Amortization Expense | The estimated annual amortization expense for each of the five succeeding fiscal years is as follow: Amortization Amortization Twelve months ending December 31, RMB US$ 2024 6,967 981 2025 6,440 907 2026 5,695 802 2027 5,072 714 2028 5,051 711 Thereafter 11,394 1,605 Total 40,619 5,720 |
Long Term Investment (Tables)
Long Term Investment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Investment [Abstract] | |
Schedule of Long Term Investment | Equity Cost method Total RMB RMB RMB Balance as of January 1, 2022 72,002 29,725 101,727 Additions 75,000 32,000 107,000 Share of gain in equity method investee 25,449 - 25,449 Balance as of December 31, 2022 172,451 61,725 234,176 Equity Cost method Total Total RMB RMB RMB US$ Balance as of January 1, 2023 172,451 61,725 234,176 32,983 Additions 21,384 42,500 63,884 8,998 Decrease - (444 ) (444 ) (63 ) Share of loss in equity method investee (31,405 ) - (31,405 ) (4,423 ) Impairment - (11,800 ) (11,800 ) (1,662 ) Balance as of December 31, 2023 162,430 91,981 254,411 35,833 |
Long Term Deposits and Other _2
Long Term Deposits and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Deposits and Other Assets [Abstract] | |
Schedule of Long Term Deposits and Other Assets | Long term deposits and other assets consist of the following: As of December 31, 2022 2023 2023 RMB RMB US$ Rent deposits 684 457 64 Advertising deposits 269 269 38 Long term deposits and other assets 953 726 102 |
Right of Use Assets (Tables)
Right of Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Right of Use Assets [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases was as follows: As of December 31, 2022 2023 2023 RMB RMB US$ Right-of-use assets, net 19,209 12,157 1,712 Operating lease liabilities - current 7,174 7,974 1,123 Operating lease liabilities - non-current 12,773 4,798 676 Total operating lease liabilities 19,947 12,772 1,799 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates for All of Operating Leases | The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2023: Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.83 years Weighted average discount rate 4.75 % |
Schedule of Maturities of Lease Liabilities | The following is a schedule of maturities of lease liabilities as of December 31, 2023: Twelve months ending December 31, RMB US$ 2024 8,360 1177 2025 4,210 593 2026 706 100 Total future minimum lease payments 13,276 1,870 Less: imputed interest 504 71 Present value of lease liabilities 12,772 1,799 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Income Tax Expenses | The income tax expenses comprise: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Current income tax expense 5,285 19,469 12,940 1,822 Deferred income tax expense (benefit) 319 (1,402 ) (4,460 ) (628 ) Income tax expenses 5,604 18,067 8,480 1,194 |
Schedule of Reconciliation of Differences Between the Statutory Tax Rate and the Effective Tax Rate | A reconciliation of the differences between the statutory tax rate and the effective tax rate for EIT for the years ended December 31, 2021, 2022 and 2023 is as follows: For the years ended December 31, 2021 2022 2023 Income tax computed at PRC statutory tax rate 25.0 % 25.0 % (25.0 )% Effect of tax-preferential entities (16.3 )% (7.1 )% 23.0 % Non-deductible expenses and others (11.9 )% (9.4 )% 34.0 % Income tax expense 3.2 % 8.5 % 32.0 % |
Schedule of Components of Deferred Taxes | The components of deferred taxes are as follows: As of December 31, 2022 2023 2023 RMB RMB US$ Deferred tax assets: Allowance for doubtful accounts 630 3,724 524 Net operating losses carried forward 3,707 3,655 515 4,337 7,379 1,039 The components of deferred liabilities are as follows: As of December 31, 2022 2023 2023 RMB RMB US$ Deferred tax liabilities Intangible assets acquired through acquisition 61,236 59,818 8,425 61,236 59,818 8,425 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Balances and Transactions [Abstract] | |
Schedule of Name of Related Parties and Relationship | In addition to the information disclosed elsewhere in the financial statements, the principal related parties with which the Company had transactions during the years presented are as follows: Name of Related Parties Relationship with the Company Mr. He Xiaowu Chief Executive Officer and Chairman of the Board Sixiang Times (Beijing) Technology Co., Ltd. Where the Company’s executive is one of the major shareholders Enmoli Inc. Where Mr. He Xiaowu acted as director Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) Controlled by a direct relative of CEO Chengdu Brightfututure Education Technology Co.,Ltd Controlled by a direct relative of CEO Sixiang Zhuohong Private Equity LP Equity investee of the Company |
Schedule of Significant Related Party Transactions | For the years ended December 31, 2021, 2022 and 2023, significant related party transactions were as follows: For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Sixiang Times (Beijing) Technology Co., Ltd. Rental and service fees 531 - - - Enmoli Inc. Interest expense 480 - - - Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) Interest income 462 - - - Sixiang Zhuohong Private Equity LP Sold 11.5385% equity interest of Banyou to the Company - - 37,500 5,282 |
Schedule of Amount Due from Related Parties | As of December 31, 2022 and 2023, the amounts due from related parties are as follows: 2022 2023 2023 RMB RMB US$ Amount due from related parties Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) (1) 1,052 - - Chengdu Brightfututure Education Technology Co. Ltd 63 - - Enmoli Inc. (2) - 355 50 Total 1,115 355 50 1) The balance represented loan receivable balance from Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership). The loan was interest free and due on December 31, 2022. The loan was collected on March 16, 2023. 2) The balance was collected on January 12, 2024. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Warrant [Member] | |
Shareholders' Equity (Tables) [Line Items] | |
Schedule of Warrants Activity | A summary of warrants activity for the year ended December 31, 2021, 2022 and 2023 is as follows: Number of Weighted Expiration Balance of warrants outstanding as of December 31, 2020 6,020,000 3.1 years February 5, 2024 Additional warrants upon exercise of UPO 100,000 - - Exercised (96,300 ) - - Balance of warrants outstanding as of December 31, 2021 6,023,700 2.1 years February 5, 2024 Balance of warrants outstanding as of December 31, 2022 6,023,700 1.1 years February 5, 2024 Balance of warrants outstanding as of December 31, 2023 6,023,700 0.1years February 5, 2024 Balance of warrants exercisable as of December 31, 2023 6,023,700 0.1years February 5, 2024 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information of the Parent Company (Tables) [Line Items] | |
Schedule of Balance Sheets | PARENT COMPANY BALANCE SHEETS As of December 31, 2022 2023 2023 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 3,127 23,584 3,322 Prepaid expenses and other current assets 1,245 820 115 Total current assets 4,372 24,404 3,437 Non-current assets Investments in subsidiaries and consolidated VIEs 1,170,235 1,165,326 164,134 TOTAL ASSETS 1,174,607 1,189,730 167,571 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accrued expenses and other current liabilities 1,752 2,006 283 Warrant liabilities 166 - - Current portion of contingent consideration – earn-out liability 4,336 - - Amounts due to subsidiaries 7,759 37,160 5,234 Total current liabilities 14,013 39,166 5,517 Total liabilities 14,013 39,166 5,517 Shareholders’ equity Ordinary share, no par value, unlimited Class A ordinary shares and Class B ordinary shares authorized, 36,684,668 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2022, respectively. 38,113,879 Class A ordinary shares and 2,925,058 Class B ordinary shares issued and outstanding as of December 31, 2023, respectively. Class A ordinary shares 396,880 423,623 59,666 Class B ordinary shares 23,896 23,896 3,366 Treasury stocks (16,482 ) (19,216 ) (2,707 ) Shares to be issued 33,923 30,777 4,335 Statutory reserves 39,208 44,698 6,296 Retained earnings 665,099 628,821 88,568 Accumulated other comprehensive income 18,070 17,965 2,530 Total shareholder’s equity 1,160,594 1,150,564 162,054 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,174,607 1,189,730 167,571 |
Schedule of Statements of Income | PARENT COMPANY STATEMENT OF INCOME For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Equity income (loss) of subsidiaries 267,436 198,340 (4,915 ) (692 ) General administrative expense and others (33,473 ) (21,377 ) (14,923 ) (2,102 ) Research and development expenses (13,946 ) (6,522 ) (5,496 ) (774 ) Change in fair value of warrant liabilities (16,421 ) 10,776 170 24 Change in fair value of contingent consideration (33,584 ) 13,071 (5,624 ) (792 ) Net income (loss) 170,012 194,288 (30,788 ) (4,336 ) Other comprehensive income (loss) - foreign currency translation adjustment 2,313 955 (105 ) (15 ) Comprehensive income (loss) attributable to the Company’s shareholders 172,325 195,243 (30,893 ) (4,351 ) |
Schedule of Statements of Cash Flows | PARENT COMPANY STATEMENT OF CASH FLOWS For the years ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Cash flows from operating activities Net income (loss) 170,012 194,288 (30,788 ) (4,336 ) Equity in (earning) loss of subsidiaries (267,436 ) (198,340 ) 4,915 692 Change in fair value of warrant liabilities 16,421 (10,776 ) (170 ) (24 ) Change in fair value of contingent consideration 33,584 (13,071 ) 5,624 792 Share based compensation 31,857 11,954 13,637 1,921 Changes in operating assets and liabilities Prepaid expense and other current assets (925 ) 72 425 60 Accrued expenses and other current liabilities 2,414 (662 ) 254 36 Net cash used in operating activities (14,073 ) (16,535 ) (6,103 ) (859 ) Cash flows from financing activities Due to related parties 14,263 35,771 29,294 4,126 Share repurchase - (16,482 ) (2,734 ) (385 ) Net cash provided by financing activities 14,263 19,289 26,560 3,741 Net increase in cash and cash equivalents 190 2,754 20,457 2,882 Cash and cash equivalents at beginning of the year 183 373 3,127 440 Cash and cash equivalents at end of the year 373 3,127 23,584 3,322 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | ||||||||
May 07, 2020 USD ($) | Jan. 28, 2019 CNY (¥) | Jul. 24, 2018 CNY (¥) | Dec. 31, 2023 | Sep. 18, 2023 | Jan. 29, 2019 | Nov. 16, 2018 | Jul. 18, 2018 | Jan. 01, 2018 | |
Organization and Principal Activities [Line Items] | |||||||||
Agreement effective term, year | 20 years | ||||||||
Term renewed | 1 year | ||||||||
Scienjoy Verse Tech Ltd [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Owned subsidiary percentage | 51% | ||||||||
SG, HX and LH [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Consideration of the transfer (in Yuan Renminbi) | ¥ | ¥ 32,000 | ||||||||
Exclusive Business Cooperation Agreements [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Agreement effective term, year | 20 years | ||||||||
Term extended | 1 year | ||||||||
Mr He Xiaowu [Member] | Scienjoy Verse Tech Ltd [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Owned subsidiary percentage | 51% | ||||||||
Share Exchange Agreement [Member] | Class A Ordinary Shares [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Agrregate amount (in Dollars) | $ | $ 19.4 | ||||||||
Earn-out consideration (in Dollars) | $ | $ 3 | ||||||||
Kashgar Times [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Consideration of the transfer (in Yuan Renminbi) | ¥ | ¥ 10,000 | ||||||||
Exclusive Option Agreements [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Agreement effective term, year | 20 years | ||||||||
Term extended | 1 year | ||||||||
Renewal extension, term year | 1 year | ||||||||
Exclusive Business Cooperation Agreements [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Renewal extension, term year | 1 year | ||||||||
Contractual Arrangements among WXZJ, QYHZ, and the Shareholders of QYHZ [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Agreement effective term, year | 20 years | ||||||||
Term renewed | 1 year | ||||||||
Business Combination [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% | ||||||||
Business Combination [Member] | Sixiang Times (Beijing) Technology Co., Ltd [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 65% | ||||||||
Business Combination [Member] | Holgus X [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% | ||||||||
Business Combination [Member] | Kashgar Times [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% | ||||||||
Business Combination [Member] | SG to HZ [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% | ||||||||
Business Combination [Member] | HX and LH [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% | ||||||||
Business Combination [Member] | SG, HX and LH [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% | ||||||||
Equity interests acquired, percentage | 100% | ||||||||
Business Combination [Member] | SG, HX and LH [Member] | WXBJ [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interests acquired, percentage | 100% | ||||||||
Business Combination [Member] | WXBJ [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interests acquired, percentage | 100% | ||||||||
Business Combination [Member] | Kashgar Times and Holgus X. [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% | ||||||||
Business Combination [Member] | Kashgar Times and Holgus X. [Member] | WXBJ [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% | ||||||||
Business Combination [Member] | SJ Verse Global Media LLC [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 90% | ||||||||
Business Combination [Member] | ZH [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interests acquired, percentage | 100% | ||||||||
Business Combination [Member] | Share Exchange Agreement [Member] | |||||||||
Organization and Principal Activities [Line Items] | |||||||||
Equity interest percentage | 100% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Subsidiaries of the Company and VIEs | 12 Months Ended |
Dec. 31, 2023 | |
Scienjoy Inc. [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | Cayman Islands |
Percentage of direct/indirect ownership | 100% |
Principal activities | Holding Company |
Date of incorporation | Feb. 23, 2017 |
Scienjoy Pte. Ltd. (“Scienjoy SG”) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | Singapore |
Percentage of direct/indirect ownership | 100% |
Principal activities | Holding Company |
Date of incorporation | Jul. 25, 2023 |
Scienjoy International Limited (“Scienjoy HK”) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | Hong Kong |
Percentage of direct/indirect ownership | 100% |
Principal activities | Holding Company |
Date of incorporation | May 18, 2017 |
Scienjoy BeeLive Limited (formerly known as Sciscape International Limited, “SIL”) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | Hong Kong |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Dec. 18, 2017 |
Golden Shield Enterprises Limited (“Golden Shield”) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | British Virgin Islands |
Percentage of direct/indirect ownership | 100% |
Principal activities | Holding Company |
Date of incorporation | Sep. 28, 2021 |
Scienjoy Verse Tech Ltd (“Scienjoy Verse”) (a 51% owned subsidiary of Scienjoy SG through entrust agreement between Scienjoy SG and Mr Xiaowu He, Chief Executive Officer and Chairman of the Board) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | Dubai |
Percentage of direct/indirect ownership | 51% |
Principal activities | Holding Company |
Date of incorporation | Sep. 18, 2023 |
Scienjoy Meta Technology LLC (“Scienjoy Meta”) (a wholly owned subsidiary of Scienjoy Verse) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | Dubai |
Percentage of direct/indirect ownership | 51% |
Principal activities | Metaverse business |
Date of incorporation | Oct. 03, 2023 |
SJ Verse Global Media LLC (“SJ Verse”) (a 90% owned subsidiary of Scienjoy Verse) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | Dubai |
Percentage of direct/indirect ownership | 45.90% |
Principal activities | Multi-channel network business |
Date of incorporation | May 20, 2020 |
Sixiang Wuxian (Beijing) Technology Co., Ltd. (“WXBJ”) (a wholly owned subsidiary of Scienjoy HK) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Holding Company |
Date of incorporation | Oct. 17, 2017 |
Sixiang Zhihui (Beijing) Technology Co., Ltd. (“ZH”) (a wholly owned subsidiary of WXBJ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Holding Company |
Date of incorporation | Jul. 05, 2018 |
Sixiang Yingyue (Shanghai) Technology Co., Ltd(“SXYY”) (a wholly owned subsidiary of WXBJ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Information technology |
Date of incorporation | Jun. 30, 2022 |
Holgus Sixiang Information Technology Co., Ltd. (“Holgus X”) (a wholly owned subsidiary of ZH) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | May 09, 2017 |
Kashgar Sixiang Times Internet Technology Co., Ltd. (“Kashgar Times”) (a wholly owned subsidiary of ZH) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Mar. 02, 2016 |
Kashgar Sixiang Lehong Information Technology Co., Ltd (“Kashgar Lehong”) (a wholly owned subsidiary of ZH) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Information technology |
Date of incorporation | Jul. 23, 2020 |
Holgus Sixiang Haohan Internet Technology Co., Ltd. (“Holgus H”) (a wholly owned subsidiary of ZH) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Information technology |
Date of incorporation | Dec. 11, 2020 |
Sixiang ZhiHui (Hainan) Technology Co., Ltd (“ZHHN”) (a wholly owned subsidiary of ZH) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Dec. 23, 2020 |
Sixiang Wuxian (Zhejiang) Culture Technology Co., Ltd (“WXZJ”) (a wholly owned subsidiary of Scienjoy HK) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Information technology |
Date of incorporation | Apr. 28, 2022 |
Sixiang Zhihui (Zhejiang) Culture Technology Co., Ltd (“ZHZJ”) (a wholly owned subsidiary of WXZJ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Information technology |
Date of incorporation | Jan. 04, 2022 |
Zhihui Qiyuan (Beijing) Technology Co., Ltd. (“QY”) (Controlled through contractual agreements by WXBJ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Holding Company |
Date of incorporation | Jan. 22, 2019 |
Beijing Sixiang Shiguang Technology Co., Ltd. (“SG”) (a wholly owned subsidiary of QY) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Oct. 28, 2011 |
Hai Xiu (Beijing) Technology Co., Ltd. (“HX”) (a wholly owned subsidiary of QY) [Memebr] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Apr. 18, 2016 |
Beijing Le Hai Technology Co., Ltd. (“LH”) (a wholly owned subsidiary of QY) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Jun. 16, 2015 |
Sixiang Mifeng (Tianjin) Technology Co., Ltd (“DF”, formerly known as Tianjin Guangju Dingfei Technology Co., Ltd) (a wholly owned subsidiary of QY) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Aug. 08, 2016 |
‣ Changxiang Infinite Technology (Beijing) Co., Ltd. (“CX”) (a wholly owned subsidiary of DF) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Sep. 22, 2016 |
Zhihui QiYuan (Hainan) Investment Co., Ltd (“QYHN”) (a wholly owned subsidiary of QY) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Mar. 02, 2021 |
Huayu Hefeng (Qingdao) Technology Co., Ltd (“HYHF”) (a wholly owned subsidiary of SG) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Sep. 29, 2021 |
Beijing Weiliantong Technology Co., Ltd.(“WLT”) (a wholly owned subsidiary of QY) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Jul. 28, 2015 |
Chuangda Zhihui (Beijing) Technology Co., Ltd.(“CDZH”) (a wholly owned subsidiary of SG) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Nov. 30, 2015 |
Beijing Huayi Dongchen Technology Co., Ltd. (“HYDC”) (a wholly owned subsidiary of CDZH) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Feb. 06, 2015 |
Hongcheng Huiying (Zhejiang)Technology Industry Development Co., Ltd(“HCHY”) (a 51% owned subsidiary of QYHN) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 51% |
Principal activities | Live streaming platform |
Date of incorporation | Feb. 15, 2022 |
Sixiang Qiyuan (Hangzhou) Culture Technology Co., Ltd (“QYHZ”) (Controlled through contractual agreements by WXZJ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Holding Company |
Date of incorporation | Mar. 30, 2022 |
Xiuli (Zhejiang) Culture Technology Co., Ltd (“XLZJ”) (a wholly owned subsidiary of QYHZ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Apr. 07, 2022 |
Leku (Zhejiang) Culture Technology Co., Ltd (“LKZJ”) (a wholly owned subsidiary of QYHZ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Apr. 07, 2022 |
Haifan (Zhejiang) Culture Technology Co., Ltd (“HFZJ”) (a wholly owned subsidiary of QYHZ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Apr. 07, 2022 |
Xiangfeng (Zhejiang) Culture Technology Co., Ltd (“XFZJ”) (a wholly owned subsidiary of QYHZ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Apr. 07, 2022 |
Hongren (Zhejiang) Culture Technology Co., Ltd (“HRZJ”) (a wholly owned subsidiary of QYHZ) [Member] | |
Schedule of Subsidiaries of the Company and VIEs [Line Items] | |
Place of incorporation | The PRC |
Percentage of direct/indirect ownership | 100% |
Principal activities | Live streaming platform |
Date of incorporation | Apr. 07, 2022 |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of Financial Information of the Consolidated VIE and its Subsidiaries - VIE [Member] ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Current assets | ||||
Cash and cash equivalents | ¥ 115,322 | $ 16,243 | ¥ 114,478 | |
Accounts receivable, net | 198,709 | 27,988 | 165,419 | |
Prepaid expenses and other current assets | 65,751 | 9,261 | 101,684 | |
Amounts due from inter-companies | [1] | 173,545 | 24,443 | 143,968 |
Total current assets | 553,327 | 77,935 | 526,601 | |
Non-current assets | ||||
Property and equipment, net | 1,356 | 191 | 1,871 | |
Intangible assets, net | 412,008 | 58,030 | 418,893 | |
Goodwill | 172,781 | 24,336 | 172,781 | |
Deferred tax assets | 6,135 | 864 | 3,649 | |
Long term deposits and other assets | 671 | 95 | 874 | |
Long term investments | 380,869 | 53,644 | 381,279 | |
Right of use assets-operating lease | 12,157 | 1,712 | 19,209 | |
Total non-current assets | 985,977 | 138,872 | 998,556 | |
TOTAL ASSETS | 1,539,304 | 216,807 | 1,525,157 | |
Current liabilities | ||||
Accounts payable | 53,545 | 7,543 | 80,564 | |
Deferred revenue | 81,503 | 11,479 | 62,567 | |
Accrued salary and employee benefits | 10,397 | 1,464 | 7,942 | |
Accrued expenses and other current liabilities | 11,300 | 1,592 | 7,014 | |
Income tax payable | 10,530 | 1,483 | 12,538 | |
Amounts due to inter-companies | [1] | 424,856 | 59,840 | 389,400 |
Current portion of contingent consideration – earn-out liability | 4,336 | |||
Lease liability-operating lease -current | 7,974 | 1,123 | 7,174 | |
Total current liabilities | 600,105 | 84,524 | 571,535 | |
Non-current liabilities | ||||
Deferred tax liabilities | 59,818 | 8,425 | 61,236 | |
Lease liabilities-operating lease -non-current | 4,798 | 676 | 12,773 | |
Total non-current liabilities | 64,616 | 9,101 | 74,009 | |
TOTAL LIABILITIES | ¥ 664,721 | $ 93,625 | 645,544 | |
Related Party [Member] | ||||
Current assets | ||||
Amounts due from related parties | ¥ 1,052 | |||
[1] Amount due from/to inter-companies consist of intercompany receivables/payables to the other companies within the Company. |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of Consolidated Statements of Income - VIE [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
Net revenues | ¥ 1,215,582 | $ 171,211 | ¥ 1,291,701 | ¥ 1,198,273 |
Third party customers | 1,215,582 | 171,211 | 1,291,602 | 1,164,317 |
Inter-companies | 99 | 33,956 | ||
Net income (loss) | ¥ (14,991) | $ (2,113) | ¥ 143,651 | ¥ 102,042 |
Organization and Principal Ac_7
Organization and Principal Activities (Details) - Schedule of Consolidated Statements of Cash Flow Activities - VIE [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | ¥ 42,562 | $ 5,995 | ¥ 155,897 | ¥ 70,255 |
Net cash used in investing activities | (42,554) | (5,994) | (122,236) | (250,714) |
Net cash provided by (used in) financing activities | ¥ 836 | $ 118 | ¥ (198) | ¥ 179,585 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 CNY (¥) shares | Apr. 08, 2024 shares | Dec. 31, 2023 USD ($) $ / shares shares | Apr. 07, 2023 shares | Dec. 31, 2022 USD ($) shares | Jun. 02, 2022 shares | Mar. 03, 2022 shares | Mar. 25, 2021 shares | Aug. 10, 2020 | |
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Earn-out liability, description | As of December 31, 2022, Beelive has achieved 93.87% of the Beelive Earn-out Target 2022 and Weiliantong has achieved 100% of Weiliantong Earn-out Target 2022. As a result, the Company classified the related portion of earn-out liability in aggregated of RMB13,106 as shares to be issued in the equity of the Company. As of December 31, 2022, there was 995,118 earn-out shares required to be issued and the Company included it in the calculation of earnings per share. Upon issuance of this report, a total of 507,804 shares (540,960 * 93.87%) has been issued to Cosmic Soar, the previous shareholder of Beelieve and a total of 487,314 share has been issue to Wolter Global, the previous shareholder of Weilingtong. | As of December 31, 2022, Beelive has achieved 93.87% of the Beelive Earn-out Target 2022 and Weiliantong has achieved 100% of Weiliantong Earn-out Target 2022. As a result, the Company classified the related portion of earn-out liability in aggregated of RMB13,106 as shares to be issued in the equity of the Company. As of December 31, 2022, there was 995,118 earn-out shares required to be issued and the Company included it in the calculation of earnings per share. Upon issuance of this report, a total of 507,804 shares (540,960 * 93.87%) has been issued to Cosmic Soar, the previous shareholder of Beelieve and a total of 487,314 share has been issue to Wolter Global, the previous shareholder of Weilingtong. | |||||||||||
Earn-out liability amount (in Yuan Renminbi) | ¥ | ¥ 9,960 | ||||||||||||
Earn-out shares (in Shares) | 403,089 | 403,089 | |||||||||||
Earn-out liabilities (in Dollars) | $ | $ 4,336 | ||||||||||||
Technical development, advisory and others percentage | 2% | 2% | 2% | 2% | |||||||||
Other income | ¥ 6,853 | $ 965 | ¥ 10,094 | ¥ 67 | |||||||||
Advertising and market promotion expenses | 1,350 | $ 190 | 2,118 | 4,794 | |||||||||
Employee benefits amount | ¥ 18,181 | 19,261 | 14,370 | $ 2,561 | |||||||||
VAT rates range | 13% | 13% | |||||||||||
General reserve fund rate | 10% | 10% | |||||||||||
Reserve fund percentage | 50% | 50% | |||||||||||
Statutory surplus fund percentage | 10% | 10% | |||||||||||
Surplus fund reached percentage | 50% | 50% | |||||||||||
Shares issued (in Shares) | 636,691 | 636,691 | 995,118 | 2,700,000 | |||||||||
Non-controlling interests, description | As of December 31, 2023, non-controlling interests represent 49% non-controlling shareholders’ interests in HCHY, 49% non-controlling shareholders’ interests in Scienjoy Verse and 10% non-controlling shareholders’ interests in SJ Verse. | As of December 31, 2023, non-controlling interests represent 49% non-controlling shareholders’ interests in HCHY, 49% non-controlling shareholders’ interests in Scienjoy Verse and 10% non-controlling shareholders’ interests in SJ Verse. | |||||||||||
Sciscape International Limited [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Equity interest rate | 100% | ||||||||||||
Tianjin Guangju Dingfei Technology Co., Ltd. [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Equity interest rate | 100% | ||||||||||||
Convenience translation [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Convenience price per share | (per share) | ¥ 7.0999 | $ 1 | |||||||||||
Weiliantong Earn-out Target 2022 [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Shares issued (in Shares) | 995,118 | 995,118 | |||||||||||
Class A Ordinary Shares [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Shares issued (in Shares) | 38,113,879 | 38,113,879 | 507,804 | 540,960 | 3,898,511 | 540,960 | |||||||
Forecast [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Shares issued (in Shares) | 403,089 | ||||||||||||
Forecast [Member] | Weiliantong Earn-out Target 2023 [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Shares issued (in Shares) | 403,089 | ||||||||||||
Forecast [Member] | Class A Ordinary Shares [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Shares issued (in Shares) | 403,089 | ||||||||||||
BeeLive [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Total annual revenue | ¥ | ¥ 580,900 | ¥ 460,600 | ¥ 336,600 | ||||||||||
Revenue percentage | 80% | 80% | |||||||||||
BeeLive [Member] | Class A Ordinary Shares [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Additional shares (in Shares) | 540,960 | 540,960 | 540,960 | ||||||||||
Weiliantong [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Total annual revenue | $ 360,000 | ¥ 280,000 | |||||||||||
Revenue percentage | 80% | 80% | |||||||||||
Additional shareholder percentage | 10% | 10% | |||||||||||
Shares issued (in Shares) | 403,089 | 636,691 | 403,089 | 636,691 | |||||||||
Weiliantong [Member] | Class A Ordinary Shares [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Additional shareholder percentage | 10% | ||||||||||||
SPAC and Beelive [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Shares issued (in Shares) | 995,118 | 3,540,960 | 995,118 | ||||||||||
Weilianto Acquisition [Member] | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Earn-out liability acquisition rate | 82.72% | 82.72% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | Dec. 31, 2023 |
Computer and transmission equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture, fixtures and office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Economic Life of the Intangible Assets | Dec. 31, 2023 |
Trademark [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Economic Life of the Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Patent [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Economic Life of the Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Copyright [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Economic Life of the Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Software [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Economic Life of the Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 3 years |
Software [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Economic Life of the Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Licenses acquired [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Economic Life of the Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial assets: | ||
Investment in marketable equity security | $ 31,525 | $ 40,548 |
Financial liabilities: | ||
Total | 4,502 | |
Warrant liability | 166 | |
Quoted price in active markets for identical assets Level 1 [Member] | ||
Financial assets: | ||
Investment in marketable equity security | 31,525 | 40,548 |
Financial liabilities: | ||
Total | ||
Warrant liability | ||
Significant other observable inputs Level 2 [Member] | ||
Financial assets: | ||
Investment in marketable equity security | ||
Financial liabilities: | ||
Total | ||
Warrant liability | ||
Significant unobservable inputs Level 3 [Member] | ||
Financial assets: | ||
Investment in marketable equity security | ||
Financial liabilities: | ||
Total | 4,502 | |
Warrant liability | 166 | |
Earn-out liability from Weiliantong acquisition [Member] | ||
Financial liabilities: | ||
Total | 4,336 | |
Earn-out liability from Weiliantong acquisition [Member] | Quoted price in active markets for identical assets Level 1 [Member] | ||
Financial liabilities: | ||
Total | ||
Earn-out liability from Weiliantong acquisition [Member] | Significant other observable inputs Level 2 [Member] | ||
Financial liabilities: | ||
Total | ||
Earn-out liability from Weiliantong acquisition [Member] | Significant unobservable inputs Level 3 [Member] | ||
Financial liabilities: | ||
Total | $ 4,336 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Major Assumptions Used in the Binomial Model - $ / shares | 12 Months Ended | |||
Jan. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earn-out liability from BeeLive acquisition [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Risk-free interest rate | 4.73% | 0.38% | ||
Share price (in Dollars per share) | $ 1.97 | $ 5.68 | ||
Earn-out liability from SPAC transaction [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Probability | 20% | 20% | ||
Earn-out liability from SPAC transaction [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Probability | 50% | 50% | ||
Earn-out liability from Weiliantong acquisition [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Risk-free interest rate | 0.39% | |||
Probability | 20% | 20% | ||
Earn-out liability from Weiliantong acquisition [Member] | Minimum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Risk-free interest rate | 4.73% | |||
Share price (in Dollars per share) | $ 5.13 | $ 1.97 | ||
Earn-out liability from Weiliantong acquisition [Member] | Maximum [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Risk-free interest rate | 0.73% | |||
Probability | 50% | 50% | ||
Warrant Liabilities [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Risk-free interest rate | 5.58% | 4.70% | 0.75% | |
Share price (in Dollars per share) | $ 3.48 | $ 1.97 | $ 5.68 | |
Volatility | 60% | 68% | 53% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of Fair Value On a Recurring Basis Using Significant Unobservable Inputs - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weiliantong acquisition [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance as of beginning | $ 4,336 | $ 10,638 | $ 107,299 |
Fair value change | 5,624 | (13,071) | 33,584 |
Exchange difference | 2,126 | ||
Exchange difference | (2,126) | ||
Reclassification to shares to be issued | (9,960) | (13,106) | (128,119) |
Balance as of ending | 4,336 | 10,638 | |
Contingent consideration resulting from Weiliantong acquisition | 19,875 | ||
Warrant Liabilities [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance as of beginning | 166 | 10,324 | 29,558 |
Fair value change | (170) | (10,776) | (16,421) |
Exchange difference | 4 | 618 | 2,698 |
Exercised | (115) | ||
Exchange difference | (4) | (618) | (2,698) |
Balance as of ending | $ 166 | $ 10,324 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of Forth Types of Our Revenue ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Principal Transaction Revenue [Line Items] | ||||
Total revenue | ¥ 1,464,871 | $ 206,323 | ¥ 1,953,257 | ¥ 1,669,358 |
Technical services and others [Member] | ||||
Principal Transaction Revenue [Line Items] | ||||
Total revenue | 19,609 | 2,761 | 39,395 | 19,397 |
Live streaming - consumable virtual items revenue [Member] | ||||
Principal Transaction Revenue [Line Items] | ||||
Total revenue | 1,420,258 | 200,040 | 1,886,179 | 1,617,056 |
Live streaming - time based virtual item revenue [Member] | ||||
Principal Transaction Revenue [Line Items] | ||||
Total revenue | ¥ 25,004 | $ 3,522 | ¥ 27,683 | ¥ 32,905 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details) - Schedule of Sets Forth Our Revenue ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
Summary of Significant Accounting Policies (Details) - Schedule of Sets Forth Our Revenue [Line Items] | ||||
TOTAL | ¥ 1,464,871 | $ 206,323 | ¥ 1,953,257 | ¥ 1,669,358 |
Technical services and others [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Sets Forth Our Revenue [Line Items] | ||||
TOTAL | 19,609 | 2,761 | 39,395 | 19,397 |
Showself [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Sets Forth Our Revenue [Line Items] | ||||
TOTAL | 334,186 | 47,070 | 521,155 | 595,004 |
Lehai [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Sets Forth Our Revenue [Line Items] | ||||
TOTAL | 263,517 | 37,116 | 241,851 | 242,910 |
Haixiu [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Sets Forth Our Revenue [Line Items] | ||||
TOTAL | 245,049 | 34,514 | 317,953 | 326,661 |
Beelive [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Sets Forth Our Revenue [Line Items] | ||||
TOTAL | 304,730 | 42,921 | 545,296 | 485,386 |
Hongle [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of Sets Forth Our Revenue [Line Items] | ||||
TOTAL | ¥ 297,780 | $ 41,941 | ¥ 287,607 |
Concentration of Risk (Details)
Concentration of Risk (Details) ¥ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 | Dec. 31, 2023 HKD ($) | |
Concentration of Risk (Details) [Line Items] | |||||
Credit risk financial instruments | ¥ 199,822 | $ 28,144 | ¥ 172,514 | ||
Deposit insurance (in Yuan Renminbi) | ¥ | ¥ 500,000 | ||||
Bank deposits (in Dollars) | $ | $ 500,000 | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Other Customer [Member] | |||||
Concentration of Risk (Details) [Line Items] | |||||
Percentage of total revenue | 10% | 10% | 10% | 10% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendors [Member] | |||||
Concentration of Risk (Details) [Line Items] | |||||
Percentage of total revenue | 10% | 19.60% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendors One [Member] | |||||
Concentration of Risk (Details) [Line Items] | |||||
Percentage of total revenue | 11.10% | 11.10% | 10.90% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Vendors Three [Member] | |||||
Concentration of Risk (Details) [Line Items] | |||||
Percentage of total revenue | 10% | 10% | |||
Revenue [Member] | |||||
Concentration of Risk (Details) [Line Items] | |||||
Total revenue percentage | 11.20% |
Acquisition (Details)
Acquisition (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 07, 2023 CNY (¥) | Oct. 07, 2023 USD ($) | Jan. 31, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) | |
Acquisition (Details) [Line Items] | ||||
Total fair value of the considerations | ¥ 181,958 | |||
Original shareholders for a cash consideration | ¥ 7,100 | $ 1,000 | ¥ 10 | |
intangible assets amortized term | 6 years | |||
Minimum [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Business acquisition of intangible assets amortized term | 5 years | |||
Maximum [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Business acquisition of intangible assets amortized term | 10 years | |||
Class A Ordinary Shares [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Pay ordinary shares | ¥ 180,000 | |||
Yieryi [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Pay cash consideration | 13,800 | |||
Loans payable | 77,400 | |||
Weiliantong [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Loans payable | 86,200 | |||
Third Party [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Loans payable | ¥ 8,800 | |||
Weiliantong [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Business combination of description | (1) the shares consideration of RMB20,800 to Weilaijin (the “Weilaijin Share Consideration”), a shareholder of Yieryi, and (ii) the shares consideration of RMB159,200 in its Class A ordinary shares to Wolter Global (the “Wolter Global Share Consideration”), including 20% of the Wolter Global Share Consideration are subject to certain performance conditions (i.e., earn-out provisions) and requirements over the following two years (earn-out arrangement). | |||
Chuangda Zhihui (Beijing) Technology Co., Ltd. [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Equity interest percentage | 100% | |||
Nujoom Almashareq Media L.L.C [Member] | ||||
Acquisition (Details) [Line Items] | ||||
Share acquisition agreement equity rate | 90% | 90% |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities - 12 months ended Dec. 31, 2023 - Discontinued Operations [Member] ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Acquisition (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities [Line Items] | ||
Cash acquired | ¥ 212 | $ 30 |
Prepaid expenses and other current assets | 104 | 15 |
Current assets | 316 | 45 |
Weiliantong acquisition [Member] | ||
Acquisition (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities [Line Items] | ||
Cash acquired | 9,497 | |
Accounts receivable, net | 937 | |
Prepaid expenses and other current assets | 893 | |
Deferred tax assets-current | 6,163 | |
Current assets | 17,490 | |
Property and equipment, net | 163 | |
Intangible assets, net | 190,021 | |
Long term deposits and other non-current assets | 136 | |
Goodwill | 75,742 | |
Total assets | 283,552 | |
Current liabilities | 101,594 | |
Total liabilities | 101,594 | |
Total consideration | 181,958 | |
Acquisition of Chuangda Huizhi [Member] | ||
Acquisition (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities [Line Items] | ||
Cash acquired | 168 | |
Accounts receivable, net | 97 | |
Prepaid expenses and other current assets | 15 | |
Amounts due from related parties | 6,563 | |
Current assets | 6,843 | |
Intangible assets, net | 100 | |
Goodwill | 4,971 | |
Total assets | 11,914 | |
Current liabilities | 11,814 | |
Total liabilities | 11,814 | |
Total consideration | 100 | |
Acquisition Of SJ Verse [Member] | ||
Acquisition (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities [Line Items] | ||
Property and equipment, net | 270 | 38 |
Goodwill | 9,686 | 1,364 |
Total assets | 10,272 | 1,447 |
Acquisition of SJ Verse [Member] | ||
Acquisition (Details) - Schedule of Fair Value of the Identifiable Assets Acquired and Liabilities [Line Items] | ||
Current liabilities | 303 | 42 |
Non-current liabilities | 3,165 | 446 |
Total liabilities | 3,468 | 488 |
10% Equity Value with non-controlling interests | (288) | (41) |
Total consideration | ¥ 7,092 | $ 1,000 |
Acquisition (Details) - Sched_2
Acquisition (Details) - Schedule of Pro Forma Results of Operations ¥ in Thousands | 12 Months Ended |
Dec. 31, 2021 CNY (¥) | |
RMB | |
Pro forma revenue | ¥ 1,860,448 |
Pro forma gross profit | 332,864 |
Pro forma income from operations | 179,664 |
Pro forma net income | ¥ 184,552 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Distributor One [Member] | ||
Accounts Receivable, Net (Details) [Line Items] | ||
Accounts receivable, percentage | 30.30% | 34.20% |
Distributor Two [Member] | ||
Accounts Receivable, Net (Details) [Line Items] | ||
Accounts receivable, percentage | 24.80% | 14.90% |
Distributor Three [Member] | ||
Accounts Receivable, Net (Details) [Line Items] | ||
Accounts receivable, percentage | 12.10% | 13.90% |
Distributor Four [Member] | ||
Accounts Receivable, Net (Details) [Line Items] | ||
Accounts receivable, percentage | 10% |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable and Allowance for Credit Losses - Accounts Receivable [Member] ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable | ¥ 266,076 | $ 37,476 | ¥ 320,203 |
Less: allowance for credit losses | (5,097) | (718) | (3,546) |
Accounts receivable, net | ¥ 260,979 | $ 36,758 | ¥ 316,657 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of Analysis of the Allowance for Credit Losses ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Schedule Of Analysis Of The Allowance For Credit Losses Abstract | ||||
Balance, beginning of year | ¥ 3,546 | $ 499 | ¥ 2,215 | ¥ 3,813 |
Bad debt allowances from acquisition | (1,459) | |||
Additions (recovery) | 1,530 | 216 | 2,739 | (1,592) |
Exchange difference | 21 | 3 | 51 | (6) |
Balance, end of year | ¥ 5,097 | $ 718 | ¥ 3,546 | ¥ 2,215 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) ¥ in Thousands, $ in Millions | 1 Months Ended | 2 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Oct. 10, 2023 CNY (¥) | Mar. 02, 2023 CNY (¥) | Apr. 11, 2022 CNY (¥) | Dec. 29, 2021 CNY (¥) | Oct. 20, 2021 CNY (¥) | Aug. 17, 2021 CNY (¥) | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 | Mar. 22, 2024 shares | Aug. 25, 2023 USD ($) | Apr. 30, 2023 CNY (¥) | Apr. 07, 2023 shares | Jun. 02, 2022 shares | |
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||
Refunded | ¥ 34,000 | ||||||||||||||
Shares units | $ | $ 1.3 | ||||||||||||||
Ordinary shares | shares | 636,691 | 995,118 | 2,700,000 | ||||||||||||
Annual interest rate | 0.20% | 0.50% | |||||||||||||
Loan receivable | ¥ 15,000 | ||||||||||||||
Interest receivable | ¥ 1,335 | ||||||||||||||
Ordinary Shares [Member] | |||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||
Ordinary shares | shares | 2,969,114 | ||||||||||||||
Tianjing Yieryi Technology Co., Ltd (“TJ YEY”) [Member] | |||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||
Equity interest, percentage | 12% | ||||||||||||||
Jiada Hexin (Beijing) Technology Co., Ltd. [Member] | |||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||
Equity interest, percentage | 32% | ||||||||||||||
Tianjing Yieryi Technology Co., Ltd (“TJ YEY”) [Member] | |||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||
Invested amount | ¥ 30,000 | ||||||||||||||
Equity interest purchased | ¥ 30,000 | ||||||||||||||
Jiada Hexin (Beijing) Technology Co., Ltd. [Member] | |||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||
Working capital | ¥ 7,000 | ¥ 8,000 | |||||||||||||
Annual interest rate | 0.20% | 0.50% | 0.50% | ||||||||||||
Hangzhou Doujin Information Technology [Member] | |||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||
Working capital | ¥ 15,000 | ||||||||||||||
Annual interest rate | 0.02% | ||||||||||||||
Long term | 1 year | ||||||||||||||
Zhejiang Mengxiang Zhixing Cultural Technology [Member] | |||||||||||||||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | |||||||||||||||
Working capital | ¥ 1,200 | ||||||||||||||
Annual interest rate | 0.02% | ||||||||||||||
Long term | 1 year |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepaid Expenses and Other Current Assets ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Schedule of prepaid expenses and other current assets [Abstract] | ||||
VAT recoverable | ¥ 25,221 | $ 3,552 | ¥ 25,004 | |
Prepaid expense | 6,019 | 848 | 9,679 | |
Prepayment for property and equipment | [1] | 34,000 | ||
Investment buyback receivable | [2] | 30,000 | 4,225 | 30,000 |
Loan receivable | [3] | 16,200 | 2,282 | 15,000 |
Other receivables | 1,213 | 171 | 1,487 | |
Prepaid expenses and other current assets | ¥ 78,653 | $ 11,078 | ¥ 115,170 | |
[1] The Company terminated the related purchases after December 31, 2022 and the prepayment balance of RMB34,000 was fully refunded and collected by April 30, 2023. The Company invested RMB30,000 in Yieryi for its 12% equity interest on August 17, 2021. As part of the Framework Agreement signed on December 29, 2021, one of the shareholders of Yieryi bought such equity interest back from the Company for RMB30,000. On August 25, 2023, such shareholder and his related party pledged their ownership of 1.3 million ordinary shares of the Company to ensure the recoverability of the receivable balance. On March 22, 2024, such shareholder and his related party further pledged their ownership of 2,969,114 ordinary shares of the Company to ensure the recoverability of the receivable balance, subsequently. (i) On October 20, 2021, the Company lent RMB8,000 to Jiada Hexin (Beijing) Technology Co., Ltd for working capital purpose. The loan was from October 20, 2021 to December 31, 2022 with monthly interest rate of 0.2% from October 20, 2021 to December 31, 2021 and monthly interest rate of 0.5% from January 1, 2022 to December 31, 2022 , On April 11, 2022, the Company lent RMB7,000 to Jiada Hexin (Beijing) Technology Co., Ltd for working capital purpose. The loan was from April 11, 2022 to December 31, 2023 with monthly interest rate of 0.2% from April 11, 2022 to December 31, 2022 and monthly interest rate of 0.5% from January 1, 2023 to December 31, 2023. Due to continuous loss in Jiada, the Company fully impaired loan receivable of RMB15,000 and related interest receivable of RMB1,335 for the year ended December 31, 2023. (ii) On March 2, 2023, the Company lent RMB15,000 to Hangzhou Doujin Information Technology Co., Ltd for working capital purpose. The loan term was for one year with daily interest rate of 0.02%. The loan was fully repaid as of March 21, 2024, subsequently. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Property and Equipment, Net [Abstract] | ||||
Depreciation expense | ¥ 1,237 | $ 174 | ¥ 1,149 | ¥ 745 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
At cost: | |||
Total cost | ¥ 11,452 | $ 1,613 | ¥ 10,890 |
Less: accumulated depreciation | (9,259) | (1,304) | (8,155) |
Property and equipment, net | 2,193 | 309 | 2,735 |
Computer and transmission equipment [Member] | |||
At cost: | |||
Total cost | 9,521 | 1,341 | 8,953 |
Furniture, fixtures and office equipment [Member] | |||
At cost: | |||
Total cost | ¥ 1,931 | $ 272 | ¥ 1,937 |
Intangible Assets (Details)
Intangible Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Intangible Assets [Abstract] | ||||
Amortization expense | ¥ 6,964 | $ 981 | ¥ 7,038 | ¥ 4,090 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
At cost: | |||
Total cost | ¥ 431,904 | $ 60,833 | ¥ 432,081 |
Less: accumulated amortization | (19,750) | (2,782) | (13,026) |
Intangible assets, net | 412,154 | 58,051 | 419,055 |
Trademark [Member] | |||
At cost: | |||
Total cost | 49,875 | 7,026 | 50,102 |
Patent [Member] | |||
At cost: | |||
Total cost | 122 | 17 | 122 |
Copyright [Member] | |||
At cost: | |||
Total cost | 214 | 30 | 172 |
Software [Member] | |||
At cost: | |||
Total cost | 9,993 | 1,407 | 9,985 |
License acquired [Member] | |||
At cost: | |||
Total cost | ¥ 371,700 | $ 52,353 | ¥ 371,700 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of Estimated Annual Amortization Expense - Dec. 31, 2023 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Schedule of Estimated Annual Amortization Expense [Abstract] | ||
2024 | ¥ 6,967 | $ 981 |
2025 | 6,440 | 907 |
2026 | 5,695 | 802 |
2027 | 5,072 | 714 |
2028 | 5,051 | 711 |
Thereafter | 11,394 | 1,605 |
Total | ¥ 40,619 | $ 5,720 |
Long Term Investment (Details)
Long Term Investment (Details) ¥ in Thousands, shares in Thousands, $ in Thousands | 12 Months Ended | |||||||||||||||||||||
Mar. 20, 2024 CNY (¥) | Mar. 12, 2024 CNY (¥) | Mar. 06, 2024 CNY (¥) | Feb. 29, 2024 USD ($) | Sep. 06, 2023 CNY (¥) | Sep. 06, 2023 USD ($) | Aug. 15, 2023 CNY (¥) | Jun. 19, 2023 CNY (¥) | Jan. 17, 2023 CNY (¥) | Dec. 19, 2022 CNY (¥) | Dec. 09, 2022 CNY (¥) | Jul. 03, 2022 CNY (¥) | May 06, 2022 CNY (¥) | Dec. 08, 2021 CNY (¥) | Oct. 09, 2021 CNY (¥) | May 27, 2021 CNY (¥) | Mar. 08, 2021 CNY (¥) | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Long Term Investment [Line Items] | ||||||||||||||||||||||
Investments | $ | $ 2,000 | |||||||||||||||||||||
Equity investment percentage | 30% | 30% | 19.2308% | 3.26% | ||||||||||||||||||
Invested amount | $ 2,000 | ¥ 21,384 | $ 3,000 | ¥ 3,500 | ¥ 8,500 | ¥ 150,000 | $ 1,000 | |||||||||||||||
Equity interest | ¥ 37,500 | (837) | ¥ 1,892 | $ (118) | ||||||||||||||||||
Amount fully paid | ¥ 37,500 | |||||||||||||||||||||
Amount of payment to related party | 355 | 50 | 1,115 | |||||||||||||||||||
Shares of loss | 739 | |||||||||||||||||||||
Impairment, Long-Lived Asset, Held-for-Use | 11,800 | $ 1,662 | ||||||||||||||||||||
Zhejiang Qusu Technology Co., Ltd [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Investments | 91,981 | |||||||||||||||||||||
Investments amount | ¥ 5,000 | |||||||||||||||||||||
Equity investment percentage | 1.70% | 1.70% | ||||||||||||||||||||
Invested amount | ¥ 1,000 | |||||||||||||||||||||
Qingdao Weilai JingChanye Investment Fund LP [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 11.5385% | 4.44% | ||||||||||||||||||||
Invested amount | ¥ 10,000 | |||||||||||||||||||||
Amount of principal refunded value | ¥ 444 | |||||||||||||||||||||
Share of gain | ¥ 77 | |||||||||||||||||||||
Shares of loss (in Shares) | shares | 30,666 | 30,666 | ||||||||||||||||||||
Jiada Hexin (Beijing) Technology Co., Ltd. [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 13.79% | |||||||||||||||||||||
Invested amount | ¥ 8,000 | |||||||||||||||||||||
Liujiaoshou Drink Co., Ltd., [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 19.50% | |||||||||||||||||||||
Invested amount | ¥ 2,925 | |||||||||||||||||||||
Beijing Dunengmaihuo Culture Media Co., Ltd., [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 19% | |||||||||||||||||||||
Invested amount | ¥ 3,800 | |||||||||||||||||||||
Valley Hongyuan (Hangzhou) Technology Partnership LP [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 14.28% | |||||||||||||||||||||
Invested amount | ¥ 5,000 | ¥ 2,000 | ||||||||||||||||||||
Chengdu Tianfu Yuanhe Jingu Venture Capital Center LP [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 1.12% | |||||||||||||||||||||
Invested amount | ¥ 5,000 | |||||||||||||||||||||
Banyou Century (Hangzhou) Technology Co., Ltd [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 7.6923% | |||||||||||||||||||||
Invested amount | ¥ 25,000 | |||||||||||||||||||||
Zhejiang Mengxiang Zhixing Cultural Technology Co Ltd [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 5% | |||||||||||||||||||||
Zhejiang Mengxiang Zhixing Cultural Technology Co Ltd [Member] | Forecast [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 14.50% | |||||||||||||||||||||
Invested amount | ¥ 4,000 | |||||||||||||||||||||
Amount of payment to related party | ¥ 2,400 | |||||||||||||||||||||
Zhejiang Yuanlai Spacetime Cultural Technology Co., Ltd [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Equity investment percentage | 5% | |||||||||||||||||||||
Invested amount | ¥ 500 | |||||||||||||||||||||
Qingdao Sixiang Zhuohong Private Equity LP [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Invested amount | ¥ 150,000 | |||||||||||||||||||||
Qingdao Sixiang Zhuohong Private Equity LP [Member] | Forecast [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Amount of payment to related party | ¥ 13,500 | |||||||||||||||||||||
DVCC TECHNOLOGY L.L.C [Member] | ||||||||||||||||||||||
Long Term Investment [Line Items] | ||||||||||||||||||||||
Investments | $ | $ 1,000 |
Long Term Investment (Details)
Long Term Investment (Details) - Schedule of Long Term Investment ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Schedule of Long Term Investment [Line Items] | |||
Balance | ¥ 234,176 | $ 32,983 | ¥ 101,727 |
Additions | 63,884 | 8,998 | 107,000 |
Decrease | (444) | (63) | |
Share of gain (loss) in equity method investee | (31,405) | (4,423) | 25,449 |
Impairment | (11,800) | (1,662) | |
Balance | 254,411 | $ 35,833 | 234,176 |
Equity investments accounted for using the equity method [Member] | |||
Schedule of Long Term Investment [Line Items] | |||
Balance | 172,451 | 72,002 | |
Additions | 21,384 | 75,000 | |
Decrease | |||
Share of gain (loss) in equity method investee | (31,405) | 25,449 | |
Impairment | |||
Balance | 162,430 | 172,451 | |
Cost method investments without readily determinable fair value [Member] | |||
Schedule of Long Term Investment [Line Items] | |||
Balance | 61,725 | 29,725 | |
Additions | 42,500 | 32,000 | |
Decrease | (444) | ||
Share of gain (loss) in equity method investee | |||
Impairment | (11,800) | ||
Balance | ¥ 91,981 | ¥ 61,725 |
Long Term Deposits and Other _3
Long Term Deposits and Other Assets (Details) - Schedule of Long Term Deposits and Other Assets ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Long Term Deposits and Other Assets [Abstract] | |||
Rent deposits | ¥ 457 | $ 64 | ¥ 684 |
Advertising deposits | 269 | 38 | 269 |
Long term deposits and other assets | ¥ 726 | $ 102 | ¥ 953 |
Right of Use Assets (Details)
Right of Use Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Right of Use Assets [Abstract] | ||||
Total lease expense | ¥ 7,543 | $ 1,062 | ¥ 6,398 | ¥ 5,424 |
Right of Use Assets (Details) -
Right of Use Assets (Details) - Schedule of Supplemental Balance Sheet Information Related to Operating Leases ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases [Abstract] | |||
Right-of-use assets, net | ¥ 12,157 | $ 1,712 | ¥ 19,209 |
Operating lease liabilities - current | 7,974 | 1,123 | 7,174 |
Operating lease liabilities - non-current | 4,798 | 676 | 12,773 |
Total operating lease liabilities | ¥ 12,772 | $ 1,799 | ¥ 19,947 |
Right of Use Assets (Details)_2
Right of Use Assets (Details) - Schedule of Weighted Average Remaining Lease Terms and Discount Rates for All of Operating Leases | Dec. 31, 2023 |
Remaining lease term and discount rate: | |
Weighted average remaining lease term (years) | 1 year 9 months 29 days |
Weighted average discount rate | 4.75% |
Right of Use Assets (Details)_3
Right of Use Assets (Details) - Schedule of Maturities of Lease Liabilities - Dec. 31, 2023 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Schedule of Maturities of Lease Liabilities [Abstract] | ||
2024 | ¥ 8,360 | $ 1,177 |
2025 | 4,210 | 593 |
2026 | 706 | 100 |
Total future minimum lease payments | 13,276 | 1,870 |
Less: imputed interest | 504 | 71 |
Present value of lease liabilities | ¥ 12,772 | $ 1,799 |
Bank Loan (Details)
Bank Loan (Details) ¥ in Thousands, $ in Thousands | Feb. 27, 2023 CNY (¥) | Aug. 12, 2022 CNY (¥) | Feb. 27, 2023 USD ($) |
Bank Loan [Abstract] | |||
Loan obtain from bank | ¥ 5,000 | ¥ 5,000 | $ 704 |
Term loan | 1 year | 1 year | |
Fixed rate | 4.30% | 4.50% | 4.30% |
Income Taxes (Details)
Income Taxes (Details) د.إ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 AED (د.إ) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income Taxes [Line Items] | |||||
Profit tax percentage | 32% | 32% | 32% | 8.50% | 3.20% |
Preferential tax rate | ¥ 3,245,000 | $ 457,000 | ¥ 18,660,000 | ¥ 38,564,000 | |
From 2016 to 2020 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 0% | 0% | 0% | ||
Singapore [Member] | |||||
Income Taxes [Line Items] | |||||
Statutory income tax rate percentage | 17% | 17% | 17% | ||
Dubai [Member] | |||||
Income Taxes [Line Items] | |||||
Statutory income tax rate percentage | 9% | 9% | 9% | ||
Statutory income tax (in Dirhams) | د.إ 375,000 | ||||
Hong Kong [Member] | |||||
Income Taxes [Line Items] | |||||
Profit tax percentage | 16.50% | 16.50% | 16.50% | ||
PRC Income Tax Laws [Member] | |||||
Income Taxes [Line Items] | |||||
Statutory income tax rate percentage | 25% | 25% | 25% | ||
Basic EPS [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate | ¥ 100 | $ 0 | 500 | 1,300 | |
Dilutive EPS [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate | ¥ 100 | $ 0 | ¥ 500 | ¥ 1,300 | |
High and New Technology Enterprise (“the HNTE”) [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 15% | 15% | 15% | ||
SG [Member] | From 2018 to 2024 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 15% | 15% | 15% | ||
HX [Member] | From 2017 to 2026 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 15% | 15% | 15% | ||
LH [Member] | From 2016 to 2024 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 15% | 15% | 15% | ||
WLT [Member] | From 2017 to 2026 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 15% | 15% | 15% | ||
CX [Member] | From 2018 to 2021 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 15% | 15% | 15% | ||
Holgus [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 0% | 0% | 0% | ||
Kashgar [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 9% | 9% | 9% | ||
Holgus X [Member] | From 2017 to 2021 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 0% | 0% | 0% | ||
Holgus X [Member] | From 2022 to 2026 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 9% | 9% | 9% | ||
Kashgar Times [Member] | From 2021 to 2025 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 9% | 9% | 9% | ||
Holgus H [Member] | From 2026 to 2030 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 0% | 0% | 0% | ||
Holgus H [Member] | From 2026 to 2030 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 9% | 9% | 9% | ||
Kashgar Lehong [Member] | From 2026 to 2030 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 0% | 0% | 0% | ||
Kashgar Lehong [Member] | From 2026 to 2030 [Member] | |||||
Income Taxes [Line Items] | |||||
Preferential tax rate, percentage | 9% | 9% | 9% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Income Tax Expenses ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Schedule of Income Tax Expenses [Abstract] | ||||
Current income tax expense | ¥ 12,940 | $ 1,822 | ¥ 19,469 | ¥ 5,285 |
Deferred income tax expense (benefit) | (4,460) | (628) | (1,402) | 319 |
Income tax expenses | ¥ 8,480 | $ 1,194 | ¥ 18,067 | ¥ 5,604 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Reconciliation of Differences Between the Statutory Tax Rate and the Effective Tax Rate | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Reconciliation of Differences Between the Statutory Tax Rate and the Effective Tax Rate [Abstract] | |||
Income tax computed at PRC statutory tax rate | (25.00%) | 25% | 25% |
Effect of tax-preferential entities | 23% | (7.10%) | (16.30%) |
Non-deductible expenses and others | 34% | (9.40%) | (11.90%) |
Income tax expense | 32% | 8.50% | 3.20% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Components of Deferred Taxes ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Deferred tax assets: | |||
Allowance for doubtful accounts | ¥ 3,724 | $ 524 | ¥ 630 |
Net operating losses carried forward | 3,655 | 515 | 3,707 |
Total deferred tax assets | 7,379 | 1,039 | 4,337 |
Deferred tax liabilities | |||
Intangible assets acquired through acquisition | 59,818 | 8,425 | 61,236 |
Total deferred tax liabilities | ¥ 59,818 | $ 8,425 | ¥ 61,236 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - Schedule of Name of Related Parties and Relationship | 12 Months Ended |
Dec. 31, 2023 | |
Mr. He Xiaowu [Member] | |
Related Party Balances and Transactions (Details) - Schedule of Name of Related Parties and Relationship [Line Items] | |
Relationship with the Company | Chief Executive Officer and Chairman of the Board |
Sixiang Times (Beijing) Technology Co., Ltd. [Member] | |
Related Party Balances and Transactions (Details) - Schedule of Name of Related Parties and Relationship [Line Items] | |
Relationship with the Company | Where the Company’s executive is one of the major shareholders |
Enmoli Inc [Member] | |
Related Party Balances and Transactions (Details) - Schedule of Name of Related Parties and Relationship [Line Items] | |
Relationship with the Company | Where Mr. He Xiaowu acted as director |
Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) [Member] | |
Related Party Balances and Transactions (Details) - Schedule of Name of Related Parties and Relationship [Line Items] | |
Relationship with the Company | Controlled by a direct relative of CEO |
Chengdu Brightfututure Education Technology Co.,Ltd [Member] | |
Related Party Balances and Transactions (Details) - Schedule of Name of Related Parties and Relationship [Line Items] | |
Relationship with the Company | Controlled by a direct relative of CEO |
Sixiang Zhuohong Private Equity LP [Member] | |
Related Party Balances and Transactions (Details) - Schedule of Name of Related Parties and Relationship [Line Items] | |
Relationship with the Company | Equity investee of the Company |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of Significant Related Party Transactions - Related Party [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Sixiang Times (Beijing) Technology Co., Ltd. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Rental and service fees | ¥ 531 | ||||
Enmoli Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest expense | 480 | ||||
Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest income | 462 | ||||
Sixiang Zhuohong Private Equity LP [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity interest of sold | ¥ 37,500 | $ 5,282 |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of Significant Related Party Transactions (Parentheticals) | Dec. 31, 2023 |
Related Party [Member] | Banyou [Member] | |
Related Party Transaction [Line Items] | |
Equity interest of sold percentage | 11.5385% |
Related Party Balances and Tr_6
Related Party Balances and Transactions (Details) - Schedule of Amount Due from Related Parties ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | ||
Amount due from related parties | ||||
Amount due from related parties | ¥ 355 | $ 50 | ¥ 1,115 | |
Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership) [Member] | ||||
Amount due from related parties | ||||
Amount due from related parties | [1] | 1,052 | ||
Chengdu Brightfututure Education Technology Co. Ltd [Member] | ||||
Amount due from related parties | ||||
Amount due from related parties | 63 | |||
Enmoli Inc [Member] | ||||
Amount due from related parties | ||||
Amount due from related parties | [2] | ¥ 355 | $ 50 | |
[1] The balance represented loan receivable balance from Dingsheng Taifu (Tianjin) Business Information Consulting Partnership (Limited Partnership). The loan was interest free and due on December 31, 2022. The loan was collected on March 16, 2023. The balance was collected on January 12, 2024. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||||
Nov. 30, 2023 $ / shares shares | Oct. 31, 2022 $ / shares shares | Mar. 03, 2022 CNY (¥) shares | May 07, 2020 $ / shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 shares | Dec. 31, 2021 CNY (¥) shares | Apr. 08, 2024 shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 $ / shares | Apr. 07, 2023 shares | Jun. 02, 2022 shares | Aug. 03, 2021 shares | Mar. 25, 2021 shares | |
Shareholders’ Equity [Line Items] | ||||||||||||||
SPAC Transaction, description | The Company is authorized to issue an unlimited number of no par value Class A ordinary shares and Class B ordinary shares. | |||||||||||||
Gross proceeds (in Yuan Renminbi) | ¥ | ¥ 664,670 | |||||||||||||
Preferred stock, shares issued | 50,000,000 | |||||||||||||
Shares issued | 636,691 | 995,118 | 2,700,000 | |||||||||||
Shares outstanding | 773,874 | |||||||||||||
Convertible promissory note (in Yuan Renminbi) | ¥ | ¥ 180,000 | |||||||||||||
Converted ordinary shares | 5.13 | |||||||||||||
Fair value amount (in Yuan Renminbi) | ¥ | ¥ 127,000 | |||||||||||||
Aggregate common shares | 119,725 | 794,120 | ||||||||||||
Treasury stock, per shares (in Dollars per share) | $ / shares | $ 3.2 | |||||||||||||
Exercise price (in Dollars per share) | $ / shares | $ 11.5 | $ 11.5 | ||||||||||||
Warrants expiration date | Feb. 05, 2024 | |||||||||||||
Warrants exercisable, shares | 3,011,850 | |||||||||||||
Weighted average life | 36 days | |||||||||||||
Receipt of cash payament (in Dollars) | $ | $ 100 | |||||||||||||
Unit purchase option (in Dollars) | $ | $ 1,286,000 | |||||||||||||
Expected volatility, percentage | 35% | |||||||||||||
Rsk-free interest rate, percentage | 2.44% | |||||||||||||
Expected life | 5 years | |||||||||||||
Earn-out shares | 3,540,960 | |||||||||||||
Earn-out liability (in Yuan Renminbi) | ¥ | ¥ 200,100 | |||||||||||||
Earn-out liability, description | As a result, there was 995,118 earn-out shares required to be issued and the Company classified the related portion of earn-out liability in aggregated of RMB13,106 as shares to be issued in the equity of the Company. | As a result, there was 3,540,960 earn-out shares required to be issued and the Company classified the related portion of earn-out liability in aggregated of RMB128,119 as shares to be issued in the equity of the Company. | ||||||||||||
Issuances total | 82.72% | |||||||||||||
Issuance total | 9,960 | |||||||||||||
Total shares | 487,314 | |||||||||||||
Shares forfeited | 21,206 | |||||||||||||
Shares vested | 434,093 | |||||||||||||
Warrants [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Warrants outstanding and exercisable | 6,023,700 | |||||||||||||
Warrants per share price (in Dollars per share) | $ / shares | $ 0.01 | |||||||||||||
Ordinary per share price (in Dollars per share) | $ / shares | $ 16.5 | |||||||||||||
Warrants expiration date | Feb. 05, 2024 | |||||||||||||
Initial Public Offering [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Public warrants, shares | 5,653,700 | |||||||||||||
Private Placement [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Private warrants, shares | 270,000 | |||||||||||||
Class A Ordinary Shares [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Ordinary shares, issued | 36,684,668 | 38,113,879 | ||||||||||||
Ordinary shares | 2,625,058 | |||||||||||||
Shares issued | 3,898,511 | 38,113,879 | 507,804 | 540,960 | 540,960 | |||||||||
Treasury stock, per shares (in Dollars per share) | $ / shares | $ 3.01 | |||||||||||||
Class A Ordinary Shares [Member] | Earn-out Target [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Ordinary shares, issued | 3,240,960 | 3,540,960 | ||||||||||||
Class B Ordinary Shares [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Ordinary shares, issued | 2,925,058 | 2,925,058 | ||||||||||||
Ordinary shares | 2,625,058 | |||||||||||||
Shares issued | 300,000 | |||||||||||||
Shares outstanding | 2,925,058 | |||||||||||||
Class B Ordinary Shares [Member] | Earn-out Target [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Ordinary shares, issued | 300,000 | |||||||||||||
Common Stock [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Ordinary stock, shares outstanding | 100,000 | |||||||||||||
White Lion Capital LLC [Member] | Class A Ordinary Shares [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Ordinary shares, issued | 108,230 | |||||||||||||
Options Held [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Unit purchase option, description | the Company sold to Chardan, for $100, an option to purchase up to 375,000 Units exercisable at $11.50 per Unit (or an aggregate exercise price of $4,312,500) exercisable on the completion of the SPAC Transaction on May 7, 2020. On February 20, 2019, in connection with the underwriters’ election to exercise the over-allotment option in full, the Company issued Chardan an option to purchase up to an additional 56,250 Units exercisable at $11.50 per Unit for no additional consideration. Each Unit consists of one ordinary share, one redeemable warrant and one right (together “UPO”). The unit purchase option may be exercised for cash or on a cashless basis, at the holder’s option, and expires February 5, 2024. For the year ended December 31, 2021, 100,000 UPO have been exercised for 100,000 warrants and 110,000 shares. As of December 31, 2023, the Company had UPO units exercisable for 530,000 Class A ordinary shares with weighted average life of 0.1 years and expiring on February 5, 2024. | |||||||||||||
Forecast [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Shares issued | 403,089 | |||||||||||||
Issued | 403,089 | |||||||||||||
Forecast [Member] | Class A Ordinary Shares [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Shares issued | 403,089 | |||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Shares issued | 2,053,783 | 2,053,783 | ||||||||||||
Shares outstanding | 716,956 | 2,053,783 | ||||||||||||
Shares forfeited | 512,217 | 72,713 | ||||||||||||
Shares vested | 1,325,614 | |||||||||||||
Weiliantong [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Shares issued | 487,314 | |||||||||||||
Total cash equivalent (in Yuan Renminbi) | ¥ | ¥ 20,800 | |||||||||||||
Issuances total | 82.72% | |||||||||||||
Issuance total | 403,089 | |||||||||||||
Weiliantong [Member] | Earn-out Target [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Achieved percentage | 100% | |||||||||||||
Weiliantong [Member] | Class A Ordinary Shares [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Ordinary shares, issued | 636,691 | |||||||||||||
BeeLive [Member] | Earn-out Target [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Achieved percentage | 93.87% | |||||||||||||
Weilaijin [Member] | Class A Ordinary Shares [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Shares issued | 636,691 | |||||||||||||
Total cash equivalent (in Yuan Renminbi) | ¥ | ¥ 20,800 | |||||||||||||
SPAC [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Issued | 3,000,000 | |||||||||||||
Business Combination [Member] | ||||||||||||||
Shareholders’ Equity [Line Items] | ||||||||||||||
Per share price (in Dollars per share) | $ / shares | $ 2.98 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of Warrants Activity - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Warrants Activity [Abstract] | |||
Number of warrants, at beginning | 6,023,700 | 6,020,000 | |
Weighted average life, at beginning | 3 years 1 month 6 days | ||
Expiration dates, at beginning | Feb. 05, 2024 | ||
Number of warrants, Additional warrants upon exercise of UPO | 100,000 | ||
Number of warrants, Exercised | (96,300) | ||
Number of warrants, at ending | 6,023,700 | 6,023,700 | 6,023,700 |
Weighted average life, at ending | 1 month 6 days | 1 year 1 month 6 days | 2 years 1 month 6 days |
Expiration dates, at ending | Feb. 05, 2024 | Feb. 05, 2024 | Feb. 05, 2024 |
Number of warrants, Balance of warrants exercisable | 6,023,700 | ||
Weighted average life, Balance of warrants exercisable | 1 month 6 days | ||
Expiration dates, Balance of warrants exercisable | Feb. 05, 2024 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Statutory Reserves and Restricted Net Assets (Details) [Line Items] | |||
Foreign invested percentage | 10% | 10% | |
Annual after-tax profit, percentage | 50% | 50% | |
Statutory reserves | ¥ 44,698 | $ 6,296 | ¥ 39,208 |
Restricted net assets | 413,117 | 58,186 | 394,521 |
Statutory reserves [Member] | |||
Statutory Reserves and Restricted Net Assets (Details) [Line Items] | |||
Statutory reserves | ¥ 39,208 | $ 6,296 | ¥ 44,698 |
Subsequent Events (Details)
Subsequent Events (Details) - Forecast [Member] - CNY (¥) ¥ in Thousands | Mar. 12, 2024 | Apr. 08, 2024 |
Subsequent Events (Details) [Line Items] | ||
Company issued (in Shares) | 403,089 | |
Zhange [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Percentage of equity interest | 6% | |
Amount of consideration cash | ¥ 13,500 | |
Qingdao LP [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Amount of payment to related party | ¥ 13,500 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - Schedule of Balance Sheets - Parent Company [Member] ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 23,584 | $ 3,322 | ¥ 3,127 |
Prepaid expenses and other current assets | 820 | 115 | 1,245 |
Total current assets | 24,404 | 3,437 | 4,372 |
Non-current assets | |||
Investments in subsidiaries and consolidated VIEs | 1,165,326 | 164,134 | 1,170,235 |
TOTAL ASSETS | 1,189,730 | 167,571 | 1,174,607 |
Current liabilities | |||
Accrued expenses and other current liabilities | 2,006 | 283 | 1,752 |
Warrant liabilities | 166 | ||
Current portion of contingent consideration – earn-out liability | 4,336 | ||
Amounts due to subsidiaries | 37,160 | 5,234 | 7,759 |
Total current liabilities | 39,166 | 5,517 | 14,013 |
Total liabilities | 39,166 | 5,517 | 14,013 |
Shareholders’ equity | |||
Treasury stocks | (19,216) | (2,707) | (16,482) |
Shares to be issued | 30,777 | 4,335 | 33,923 |
Statutory reserves | 44,698 | 6,296 | 39,208 |
Retained earnings | 628,821 | 88,568 | 665,099 |
Accumulated other comprehensive income | 17,965 | 2,530 | 18,070 |
Total shareholder’s equity | 1,150,564 | 162,054 | 1,160,594 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,189,730 | 167,571 | 1,174,607 |
Class A Ordinary Shares | |||
Shareholders’ equity | |||
Class ordinary shares | 423,623 | 59,666 | 396,880 |
Class B Ordinary Shares | |||
Shareholders’ equity | |||
Class ordinary shares | ¥ 23,896 | $ 3,366 | ¥ 23,896 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of Balance Sheets (Parentheticals) - Parent Company [Member] | 12 Months Ended | ||
Dec. 31, 2023 ¥ / shares shares | Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2023 $ / shares shares | |
Class A Ordinary Shares | |||
Schedule of Balance Sheets [Line Items] | |||
Ordinary share, par value (in Dollars per share and Yuan Renminbi per share) | (per share) | |||
Ordinary shares, issued | 38,113,879 | 36,684,668 | 38,113,879 |
Ordinary shares, outstanding | 38,113,879 | 36,684,668 | 38,113,879 |
Ordinary shares, authorized | Unlimited | Unlimited | |
Class B Ordinary Shares | |||
Schedule of Balance Sheets [Line Items] | |||
Ordinary share, par value (in Dollars per share and Yuan Renminbi per share) | (per share) | |||
Ordinary shares, issued | 2,925,058 | 2,925,058 | 2,925,058 |
Ordinary shares, outstanding | 2,925,058 | 2,925,058 | 2,925,058 |
Ordinary shares, authorized | Unlimited | Unlimited |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of Statements of Income - Parent Company [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Schedule of Statements of Income [Line Items] | ||||
Equity income (loss) of subsidiaries | ¥ (4,915) | $ (692) | ¥ 198,340 | ¥ 267,436 |
General administrative expense and others | (14,923) | (2,102) | (21,377) | (33,473) |
Research and development expenses | (5,496) | (774) | (6,522) | (13,946) |
Change in fair value of warrant liabilities | 170 | 24 | 10,776 | (16,421) |
Change in fair value of contingent consideration | (5,624) | (792) | 13,071 | (33,584) |
Net income (loss) | (30,788) | (4,336) | 194,288 | 170,012 |
Other comprehensive income (loss) - foreign currency translation adjustment | (105) | (15) | 955 | 2,313 |
Comprehensive income (loss) attributable to the Company’s shareholders | ¥ (30,893) | $ (4,351) | ¥ 195,243 | ¥ 172,325 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of Statements of Cash Flows - Parent Company [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ (30,788) | $ (4,336) | ¥ 194,288 | ¥ 170,012 |
Equity in (earning) loss of subsidiaries | 4,915 | 692 | (198,340) | (267,436) |
Change in fair value of warrant liabilities | (170) | (24) | (10,776) | 16,421 |
Change in fair value of contingent consideration | 5,624 | 792 | (13,071) | 33,584 |
Share Based Compensation | 13,637 | 1,921 | 11,954 | 31,857 |
Prepaid expense and other current assets | 425 | 60 | 72 | (925) |
Accrued expenses and other current liabilities | 254 | 36 | (662) | 2,414 |
Net cash used in operating activities | (6,103) | (859) | (16,535) | (14,073) |
Cash flows from financing activities | ||||
Due to related parties | 29,294 | 4,126 | 35,771 | 14,263 |
Share repurchase | (2,734) | (385) | (16,482) | |
Net cash provided by financing activities | 26,560 | 3,741 | 19,289 | 14,263 |
Net increase in cash and cash equivalents | 20,457 | 2,882 | 2,754 | 190 |
Cash and cash equivalents at beginning of the year | 3,127 | 440 | 373 | 183 |
Cash and cash equivalents at end of the year | ¥ 23,584 | $ 3,322 | ¥ 3,127 | ¥ 373 |