Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2020 |
Entity File Number | 001-39167 |
Entity Registrant Name | Molecular Data Inc. |
Entity Central Index Key | 0001758736 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 11/F, Building 15 |
Entity Address, Address Line Two | 2177 Shenkun Road |
Entity Address, Address Line Three | Minhang District, |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201106 |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Steven Foo, Chief Financial Officer |
Entity Address, Address Line One | 11/F, Building 15 |
Entity Address, Address Line Two | 2177 Shenkun Road |
Entity Address, Address Line Three | Minhang District, |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201106 |
Entity Address, Country | CN |
City Area Code | 8621 |
Local Phone Number | 5436-5166 |
Contact Personnel Email Address | investor@molbase.com |
ADS | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representingthree Class A ordinary shares |
Trading Symbol | MKD |
Security Exchange Name | NASDAQ |
Ordinary shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00005per share* |
Entity Common Stock, Shares Outstanding | 389,819,415 |
Class A ordinary shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 334,999,682 |
Class B ordinary shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 54,819,733 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current Assets | |||
Cash and cash equivalents | ¥ 11,311 | $ 1,733 | ¥ 15,156 |
Restricted cash | 277 | 42 | 42,518 |
Accounts receivable, net | 5,963 | 914 | 20,424 |
Short-term investments | 336,038 | 51,500 | |
Unbilled receivables | 51,825 | 7,943 | 62,529 |
Notes receivable | 24,761 | 3,795 | 124,176 |
Inventories, net | 2,821 | 432 | 4,351 |
Amounts due from related parties | 1,144 | 175 | 828 |
Prepayments and other current assets | 229,046 | 35,103 | 216,850 |
Total current assets | 663,186 | 101,637 | 486,832 |
Non-current assets | |||
Long-term investment | 353 | 54 | |
Property and equipment, net | 725 | 111 | 1,106 |
Intangible assets, net | 536 | 82 | 1,560 |
Deferred assets & deferred tax assets | 15,826 | 2,425 | |
Right-of-use asset, net | 4,195 | 643 | 3,219 |
Total non-current assets | 21,635 | 3,315 | 5,885 |
Total Assets | 684,821 | 104,952 | 492,717 |
Current Liabilities (including current liabilities of the consolidated VIEs and its subsidiary without recourse to the primary beneficiary of RMB584,740 and RMB751,190 (US$115,125) as of December 31, 2019 and 2020, respectively) | |||
Short-term borrowings | 33,749 | 5,172 | 13,749 |
Accounts payable | 315,729 | 48,388 | 304,380 |
Deferred revenue | 81,636 | 12,511 | 107,181 |
Accrued expenses and other liabilities | 132,674 | 20,333 | 103,026 |
Income taxes payable | 387 | ||
Convertible notes | 16,096 | 2,467 | |
Amounts due to related parties | 111,186 | 17,040 | 143,958 |
Lease liabilities | 1,536 | 235 | 3,080 |
Total current liabilities | 692,606 | 106,146 | 675,761 |
Non-current Liabilities (including non-current liabilities of the consolidated VIEs and its subsidiary without recourse to the primary beneficiary of RMB4,320 and RMB341 (US$52) as of December 31, 2019 and 2020, respectively) | |||
Amounts due to related parties | 33,453 | ||
Non-current portion of capital lease obligations | 17,052 | 2,613 | |
Non-current portion of lease liability | 2,659 | 408 | |
Contingency liability | 341 | 52 | |
Total non-current liabilities | 20,052 | 3,073 | 33,453 |
Total Liabilities | 712,658 | 109,219 | 709,214 |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 42 | 6 | |
DEFICIT: | |||
Ordinary shares (par value of US$0.00005 per share; 1,000,000,000 shares authorized; 255,807,290 Class A ordinary shares issued outstanding, 54,819,733 Class B ordinary shares issued and outstanding as of December 31, 2019; 334,999,682 Class A ordinary shares issued and 304,488,317 outstanding, 54,819,733 Class B ordinary shares issued and outstanding as of December 31, 2020.) | 114 | 17 | 98 |
Additional paid-in capital | 1,075,064 | 164,761 | 537,618 |
Accumulated other comprehensive loss | (21,192) | (3,248) | (316) |
Accumulated deficit | (1,081,914) | (165,811) | (753,897) |
Total Molecular Data Inc. shareholders' deficit | (27,928) | (4,281) | (216,497) |
Non-controlling interest | 49 | 8 | |
TOTAL DEFICIT | (27,879) | (4,273) | (216,497) |
TOTAL LIABILITIES AND DEFICIT | ¥ 684,821 | $ 104,952 | ¥ 492,717 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)shares |
Current liabilities | ¥ 692,606 | $ 106,146 | ¥ 675,761 |
Non-current liabilities | ¥ 20,052 | $ 3,073 | ¥ 33,453 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Class A ordinary shares | |||
Common stock, shares issued | 334,999,682 | 334,999,682 | 255,807,290 |
Common stock, shares outstanding | 304,488,317 | 304,488,317 | 255,807,290 |
Class B ordinary shares | |||
Common stock, shares issued | 54,819,733 | 54,819,733 | 54,819,733 |
Common stock, shares outstanding | 54,819,733 | 54,819,733 | 54,819,733 |
VIEs and subsidiary of the VIE | |||
Current liabilities | ¥ 751,190 | $ 115,125 | ¥ 584,740 |
Non-current liabilities | ¥ 341 | $ 52 | ¥ 4,320 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net revenues | ¥ 7,596,412 | $ 1,164,201 | ¥ 13,207,315 | ¥ 9,053,266 |
Cost of revenues | (7,606,611) | (1,165,764) | (13,106,542) | (8,973,097) |
Gross profit | (10,199) | (1,563) | 100,773 | 80,169 |
Sales and marketing expenses | (67,018) | (10,271) | (108,858) | (103,293) |
General and administrative expenses | (210,401) | (32,245) | (104,471) | (173,872) |
Research and development expenses | (35,215) | (5,397) | (45,038) | (36,889) |
Allowance for doubtful accounts | (8,724) | (1,337) | (34,618) | (1,907) |
Impairment of long-term investment | (647) | (99) | 0 | 0 |
Total operating expenses | (321,358) | (49,250) | (292,985) | (315,961) |
Operating loss | (331,557) | (50,813) | (192,212) | (235,792) |
Interest expenses, net | (10,727) | (1,644) | (4,367) | (19,049) |
Loss from equity investment | (645) | (99) | 0 | 0 |
Foreign exchange (loss) income | 5,459 | 837 | 185 | (3,033) |
Other income, net | 11,890 | 1,822 | 3,311 | 3,235 |
Loss before income tax | (325,580) | (49,897) | (193,083) | (254,639) |
Income tax expenses | (2,458) | (377) | (465) | 0 |
Net loss | (328,038) | (50,274) | (193,548) | (254,639) |
Net loss attributable to non-controlling interest | (41) | (6) | ||
Net loss attributable to Molecular Data Inc. | ¥ (327,997) | $ (50,268) | ¥ (193,548) | ¥ (254,639) |
Loss per share: | ||||
Earnings Per Share, Basic | (per share) | ¥ (0.94) | $ (0.14) | ¥ (0.62) | ¥ (0.82) |
Earnings Per Share, Diluted | (per share) | ¥ (0.87) | $ (0.13) | ¥ (0.62) | ¥ (0.82) |
Weighted average shares outstanding | ||||
Basic | 348,160,637 | 348,160,637 | 310,627,024 | 310,627,024 |
Diluted | 376,052,756 | 376,052,756 | 310,627,024 | 310,627,024 |
Foreign currency translation adjustments, net of tax of nil | ¥ 20,876 | $ 3,199 | ¥ 316 | ¥ 0 |
Comprehensive loss | (307,162) | (47,075) | (193,232) | (254,639) |
Less: comprehensive loss attributable to non-controlling interest | (41) | (6) | 0 | 0 |
Comprehensive loss attributable to Molecular Data Inc. | ¥ (307,121) | $ (47,069) | ¥ (193,232) | ¥ (254,639) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||
Other comprehensive income, Tax | ¥ 0 | ¥ 0 | ¥ 0 |
Foreign currency translation adjustments, Tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) ¥ in Thousands | Ordinary sharesCNY (¥)shares | Ordinary sharesUSD ($)shares | Additional paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Accumulated deficitCNY (¥) | Accumulated deficitUSD ($) | Accumulated other comprehensive incomeCNY (¥) | Accumulated other comprehensive incomeUSD ($) | Noncontrolling interestCNY (¥) | Noncontrolling interestUSD ($) | CNY (¥)shares | USD ($)shares |
Balance at beginning of period at Dec. 31, 2017 | ¥ 98 | ¥ 311,513 | ¥ (305,710) | ¥ 5,901 | ||||||||
Balance at beginning of period (in shares) at Dec. 31, 2017 | shares | 310,627,024 | 310,627,024 | ||||||||||
Capital contribution from shareholders | 69,904 | 69,904 | ||||||||||
Share-based compensation | 124,022 | 124,022 | ||||||||||
Capital distribution to shareholders | (6,813) | (6,813) | ||||||||||
Net loss for the year | (254,639) | (254,639) | ||||||||||
Balance at end of period at Dec. 31, 2018 | ¥ 98 | 498,626 | (560,349) | (61,625) | ||||||||
Balance at end of period (in shares) at Dec. 31, 2018 | shares | 310,627,024 | 310,627,024 | ||||||||||
Foreign exchange difference | ¥ (316) | (316) | ||||||||||
Share-based compensation | 38,992 | 38,992 | ||||||||||
Net loss for the year | (193,548) | (193,548) | ||||||||||
Balance at end of period at Dec. 31, 2019 | ¥ 98 | 537,618 | (753,897) | (316) | (216,497) | |||||||
Balance at end of period (in shares) at Dec. 31, 2019 | shares | 310,627,024 | 310,627,024 | ||||||||||
Foreign exchange difference | (20,876) | (20,876) | ||||||||||
Issuance of new shares | ¥ 12 | 367,576 | 367,588 | |||||||||
Issuance of new shares (in shares) | shares | 35,005,761 | 35,005,761 | ||||||||||
Deemed contribution to shareholders | $ 900,000 | 6,753 | 6,753 | |||||||||
Exercise of stock options | ¥ 4 | 2,540 | ¥ 2,544 | |||||||||
Exercise of stock options (in shares) | shares | 12,775,265 | 12,775,265 | 6,898,287 | 6,898,287 | ||||||||
Share-based compensation | 160,557 | ¥ 160,557 | ||||||||||
Investment from minority shareholders | ¥ 90 | 90 | ||||||||||
Net loss for the year | (327,997) | (41) | (328,038) | $ (50,274,000) | ||||||||
Appropriation of statutory | 20 | (20) | ||||||||||
Balance at end of period at Dec. 31, 2020 | ¥ 114 | $ 17,000 | ¥ 1,075,064 | $ 164,761,000 | ¥ (1,081,914) | $ (165,811,000) | ¥ (21,192) | $ (3,248,000) | ¥ 49 | $ 8,000 | ¥ (27,879) | $ (4,273,000) |
Balance at end of period (in shares) at Dec. 31, 2020 | shares | 359,308,050 | 359,308,050 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Parenthetical) | 12 Months Ended |
Dec. 31, 2020shares | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) | |
Share issued issuance costs | 86,445 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | ¥ (328,038) | $ (50,274) | ¥ (193,548) | ¥ (254,639) |
Adjustments to reconcile net loss to net cash generated from operating activities: | ||||
Depreciation of property and equipment | 584 | 90 | 1,509 | 1,373 |
Amortization of intangible assets | 1,140 | 175 | 1,541 | 1,065 |
Loss (gain) on disposal of property and equipment | 3 | |||
Non- cash lease expense of right-of-use asset | 140 | 21 | 4,881 | |
Allowance for doubtful accounts | 8,723 | 1,337 | 34,618 | 1,609 |
Deferred income taxes (benefit) expense | (5,116) | (784) | ||
Interest expense | 2,298 | 352 | ||
Impairment of long-term investment | 647 | 99 | 0 | 0 |
Share-based compensation expense | 44,526 | 6,824 | 38,992 | 124,022 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 13,155 | 2,016 | 16,029 | 13,428 |
Unbilled receivables | 10,703 | 1,640 | (52,475) | 18,342 |
Inventories | 1,530 | 234 | 2,905 | 11,943 |
Notes receivable | 99,415 | 15,236 | (122,101) | 7,061 |
Amounts due from related parties | (316) | (48) | ||
Prepayments and other current assets | (19,612) | (3,006) | 51,415 | (144,849) |
Long-term deferred cost | (10,710) | (1,641) | ||
Accounts payable | 11,346 | 1,739 | 206,208 | 14,000 |
Deferred revenue | (25,544) | (3,915) | (46,286) | 108,624 |
Accrued expenses and other liabilities | 26,843 | 4,114 | 79,774 | 12,660 |
Deferred government grants | (30) | (336) | ||
Income taxes payable | 461 | 71 | 387 | |
Lease liabilities | (4,881) | |||
Amounts due to related parties | (66,226) | (10,150) | (114,759) | (48,939) |
Net cash used in operating activities | (234,048) | (35,870) | (95,821) | (134,636) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property and equipment | 16,846 | 2,582 | (853) | (484) |
Purchases of intangible assets | (116) | (18) | (967) | (1,758) |
Payments for short-term investments | (336,038) | (51,500) | ||
Payment for long-term investment | (1,000) | (153) | ||
Net cash used in investing activities | (320,308) | (49,089) | (1,820) | (2,242) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from capital contribution | 69,904 | |||
Payment for capital distribution | (6,813) | |||
Proceeds from issuance of ordinary shares | 419,955 | 64,361 | ||
Proceeds from mandatorily redeemable noncontrolling interests | 16,137 | 2,473 | ||
Deemed contribution to shareholders | 72,961 | 11,182 | ||
Capital contribution to equity by M.I. | 90 | 14 | ||
Proceeds from bank borrowings | 20,000 | 3,065 | ||
Proceeds from loans from related parties | 88,881 | 166,989 | ||
Repayment of loans to related parties | (794) | (72,397) | ||
Proceeds from other borrowings | 102,883 | 712,823 | ||
Repayment of other borrowings | (41,571) | (833,173) | ||
Net cash generated from financing activities | 529,143 | 81,095 | 149,399 | 37,333 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (20,873) | (3,200) | (561) | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (46,086) | (7,064) | 51,197 | (99,545) |
Cash, cash equivalents and restricted cash at beginning of year | 57,674 | 8,839 | 6,477 | 106,022 |
Cash, cash equivalents and restricted cash at end of year | 11,588 | 1,775 | 57,674 | 6,477 |
Reconciliation of cash, cash equivalents and restricted cash | ||||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | 11,588 | 1,775 | 57,674 | 6,477 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 11,513 | 1,764 | (4,428) | (19,386) |
Interest received | (787) | (121) | 61 | ¥ 337 |
Income tax paid | 1,177 | 180 | (78) | |
Supplemental disclosure of non-cash activities: | ||||
Operating lease liabilities arising from obtaining right-of-use assets | ¥ 4,261 | $ 653 | ¥ 3,394 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
Organization | |
Organization | 1. Organization Molecular Data Inc. (the “Company”) was incorporated as an exempted company with limited liability in the Cayman Islands on February 28, 2018 by MOLBASE Inc. The Company is considered a foreign entity under the laws of the People’s Republic of China (the “PRC” or “China”). The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries, variable interest entities (the “VIEs”) and subsidiary of the VIE which are all located in the PRC and Hong Kong. The Company is principally engaged in chemical e-commerce business. The Company, through a series of transactions which are accounted for as a reorganization of entities and transfer of businesses under common control in 2018 (the ‘‘Reorganization’’), became the parent entity of its subsidiaries, VIEs and the subsidiary of the VIE. Accordingly, these consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented. As of December 31, 2020, the Company’s significant subsidiaries, VIEs and subsidiary of the VIE are as follows: Percentage of Date of Place of ownership by the Entity incorporation incorporation Company Principal activities Direct Indirect Subsidiaries: Molecular Data (HK) Limited (“MKD HK”) 14 March, 2018 Hong Kong 100 % — Investment holding Shanghai MOHUA Information Technology Co., Ltd. (“Shanghai MOHUA”) 27 July, 2018 PRC 100 % — E-commerce platform Shanghai MOKAI Biotechnology Co., Ltd. (“Shanghai MOKAI”) 11 December, 2018 PRC 100 % — Chemical trading Shanghai MOCHUANG Biotechnology Co., Ltd. (“Shanghai MOCHUANG”) 11 December, 2018 PRC 100 % — Chemical trading Shanghai MOLIAN Biotechnology Co., Ltd (“Shanghai MOLIAN”) 17 October, 2019 PRC 100 % — Chemical trading Shandong MOBEI New Material Co., Ltd 28 February, 2020 PRC 100 % — Chemical trading MOBEI (Tianjin) Biotechnology Co., Ltd 18 January, 2018 PRC 100 % — Chemical trading VIEs: Shanghai MOLBASE Technology Co., Ltd. (“Shanghai MOLBASE”) 26 January, 2014 PRC — 100 % E-commerce platform Jiaxing MOLBASE Information Technology Co., Ltd. (“Jiaxing MOLBASE”) 21 March, 2013 PRC — 100 % Chemical trading Subsidiary of the VIE: ShanXi MOLBASE Biotechnology Co., Ltd. (“ShanXi MOLBASE”) 29 August, 2017 PRC — 100 % Chemical trading Jiangsu MOBEI Biotechnology Co., Ltd 22 June, 2020 PRC — 51 % Chemical trading *1 The VIE agreements As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its websites and conducts some of its business in the PRC through the VIEs and the subsidiary of the VIE. On December 21, 2018, the Company entered into share pledge agreements with the nominee shareholders of the VIE through its wholly-owned subsidiary, Shanghai MOHUA (the “WFOE”) in the PRC, for the equity interests in the VIEs held by the shareholders of the VIEs. In addition, the Company entered into a power of attorney and an exclusive call option agreement with the VIEs and nominee shareholders of the VIEs through its wholly-owned subsidiary in the PRC, which provide its wholly-owned subsidiary the power to direct the activities that most significantly affect the economic performance of the VIEs and to acquire the equity interests in the VIEs when permitted by the PRC laws, respectively. In addition, pursuant to the resolution of all shareholders of the Company and the resolution of the board of directors of the Company on December 21, 2018 (the “Resolutions”), the rights under the aforementioned power of attorney and the exclusive call option agreements were assigned to the board of directors of the Company (the “Board”) or any officer authorized by the Board, which entitle the Company or its WFOE to receive economic benefits from the VIEs that potentially could be significant to the VIEs. Despite the lack of technical majority ownership, the Company has effective control of the VIEs through a series of VIE Agreements and a parent-subsidiary relationship exists between the Company and the VIEs. Through the VIE Agreements, the shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interest in the VIEs to the Company. In addition, through the exclusive business operation agreement, the Company, through its WFOE in the PRC, have the right to receive economic benefits from the VIEs that potentially could be significant to the VIEs. Therefore, the Company is considered the primary beneficiary of the VIEs and consolidates the VIEs and its subsidiary as required by SEC Regulation S-X Rule 3A-02 and ASC topic 810 (“ASC 810”), Consolidation . The following is a summary of the VIE Agreements: Shareholders’ Voting Rights Proxy Agreements Exclusive Option Agreements Equity Pledge Agreements Exclusive technical support and service agreements Resolutions of all shareholders and resolution of the board of directors of Molecular Data Inc. In the opinion of the Company’s legal counsel, (i) the ownership structure of the Company and its VIEs is in compliance with PRC laws and regulations; and (ii) the contractual arrangements with the VIEs and their shareholders are valid and binding, and not in violation of current PRC laws or regulations; (iii) the resolutions are valid in accordance with the articles of association of the Company and the Cayman Islands Law. However, uncertainties in the PRC legal system could cause the Company’s current ownership structure to be found in violation of existing and/or future PRC laws or regulations and could limit the Company’s ability to enforce its rights under these contractual arrangements. Furthermore, the nominee shareholders of the VIEs may have interests that are different from those of the Company, which could potentially increase the risk that they would seek to act contrary to the terms of the contractual agreements with the VIEs. In addition, if the current structure or any of the contractual arrangements were found to be in violation of any existing or future PRC laws or regulations, the Company may be subject to penalties, including but not be limited to, revocation of business and operating licenses, discontinuing or restricting business operations, restricting the Company’s right to collect revenues, temporary or permanent blocking of the Company’s internet financial services platforms, restructuring of the Company’s operations, imposition of additional conditions or requirements with which the Company may not be able to comply, or other regulatory or enforcement actions against the Company that could be harmful to its business. The imposition of any of these or other penalties could have a material adverse effect on the Company’s ability to conduct its business. Creditors of the VIEs have no recourse to the general credit of the Company, who is the primary beneficiary of the VIEs, through its wholly-owned subsidiary, Shanghai MOHUA. The Company did not provide any additional financial or other support that it was not previously contractually required to provide to the VIEs during the periods presented. The table sets forth the assets and liabilities of the VIEs and subsidiary of the VIE included in the Company’s consolidated balance sheets: As of December 31, 2019 2020 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 3,382 593 91 Restricted cash 4,148 277 42 Accounts receivable, net 11,774 3,626 556 Unbilled receivables 41,211 50,361 7,718 Notes receivable 107,404 1,922 295 Inventories, net 725 85 13 Prepayments and other current assets 132,152 131,838 20,205 Amounts due from related parties 95,651 279,139 42,780 Total current assets 396,447 467,842 71,700 Non-current assets: Long-term investment — 353 54 Property and equipment, net 1,049 541 83 Intangible assets, net 1,560 536 82 Right-of-use assets, net 3,219 334 51 Total non-current assets 5,828 1,765 270 Total assets 402,275 469,607 71,970 Current liabilities: Accounts payable 185,188 174,704 26,776 Accrued expenses and other liabilities 65,443 90,203 13,824 Income taxes payable 387 — — Deferred revenue 68,662 17,634 2,702 Current portion of lease liabilities 3,080 334 51 Amounts due to related parties 261,980 468,314 71,772 Total current liabilities 584,740 751,190 115,125 Non-current liabilities: Amounts due to related parties 4,320 — — Contingency liability — 341 52 Total non-current liabilities 4,320 341 52 Total liabilities 589,060 751,531 115,177 The table sets forth the results of operations and cash flows of the VIEs and subsidiary of the VIE included in the Company’s consolidated statements of comprehensive loss and cash flows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Net revenues 2,187,683 10,208,796 2,201,513 337,397 Net loss (19,451) (103,375) (95,148) (14,582) comprehensive loss attributable to non-controlling interest (41) (6) Net cash used in operating activities (48,944) (47,912) (5,493) (842) Net cash used in investing activities (99) (3,535) (1,258) (193) Net cash generated from financing activities 49,135 57,727 90 14 As of December 31, 2019, and 2020, there were RMB4,148 and nil for pledge or collateralization of the assets of the VIEs and the subsidiary of the VIE, respectively. The amount of the net liabilities of the VIEs and subsidiary of the VIE were RMB186,784 and RMB281,925 (US$43,207) as of December 31, 2019 and 2020, respectively. The creditors of the VIEs and the subsidiary of the VIE’s third-party liabilities did not have recourse to the general credit of the primary beneficiary in the normal course of business. On December 30, 2019, the Company announced the pricing of its Initial Public Offering (“IPO”) of 11,500,000 American Depositary Shares (“ADS”), each ADS representing three of its Class A ordinary shares, at a price of US$5.38 per ADS for a total offering size of approximately US$61,870. The Company subsequently commenced trading on the Nasdaq Stock Market under the symbol “MKD”. AMTD Global Markets Limited, Fosun Hani Securities Limited and Boustead Securities, LLC acted as joint bookrunners of the offering and as the representatives of the underwriters. The closing date of the IPO was January 2, 2020. |
Liquidity and Going Concern
Liquidity and Going Concern | 12 Months Ended |
Dec. 31, 2020 | |
Liquidity and Going Concern | |
Liquidity and Going Concern | 2. Liquidity and Going Concern The Company has been incurring recurring losses from operations since 2018. Accumulated losses from operations were RMB254,639, RMB193,548 and RMB328,038 (US$50,274) as of December 31, 2018, 2019 and 2020, respectively. The net cash used in operating activities was RMB134,636, RMB95,821 and RMB234,048 (US$35,870) for the years ended December 31, 2018, 2019 and 2020, respectively. The Company’s liquidity is based on its ability to generate cash from operating activities, obtain capital financing from equity interest investors and borrow funds on favorable economic terms to fund its general operations and capital expansion needs. The Company’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes increasing revenue while controlling operating cost and expenses to generate positive operating cash flows and obtaining funds from outside sources of financing to generate positive financing cash flows. As of December 31, 2019 and 2020, the Company’s balance of cash, cash equivalents and restricted cash was RMB57,674 and RMB11,588 (US$1,775). Based on cash flow projections from operating and financing activities and existing balance of cash and cash equivalents, management believes it will be sufficient to fund its operations within one year from the date the consolidated financial statements are issued. The Company plans to continue to fund its losses from operations through cash and cash equivalents, as well as through future equity offerings, debt financings, other third party funding, and new business developments to generate profitable operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”). The Company experienced a net loss of RMB327,997 (US$50,268) and negative cash flows from operating activities of RMB234,048 (US$35,870) for the year ended December 31, 2020. As of December 31, 2020, the Company had current liabilities exceeded its current assets by RMB29,420 (US$4,509). The management believes the Company has the ability to fulfill its financial obligations and will continue as a going concern considering the cash inflows from Initial Public Offering with a total offering size of approximately US$61,870, though in January 2020, the Company purchased a US$58,400 note issued by a third party. In June 2020, the note was fully redeemed and the Company purchased a US$51,500 senior unsecured note issued by another third party. The Note matures on June 15, 2023 and bears interest at 6.25% per annum, on an annual and non-compounded basis, payable in full at maturity date. The Company may request the issuer to redeem at any time after the issuance of the Note by giving 14 days prior written notice. As a result, it is appropriate for the consolidated financial statements to be prepared on a going concern basis. (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and the subsidiary of the VIE. All significant inter-company transactions and balances between the Company, its subsidiaries, the VIEs and subsidiary of the VIE have been eliminated upon consolidation. (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but not limited to, estimating variable consideration, the useful lives of long-lived assets and intangible assets, determining the provision for accounts receivable and prepayments, determining the provision for inventories, impairment assessment for long-term investment and long-lived assets, accounting for share-based compensation, valuation allowance for deferred tax assets, measurement of right-of-use assets and lease liabilities. Changes in facts and circumstances may result in revised estimates. Actual results could materially differ from those estimates. (d) Foreign currency The functional currency of the Company and its Hong Kong subsidiary is the United States dollars (“US$”). The Company’s PRC subsidiaries, the VIEs and the subsidiary of the VIE determined their functional currency to be the Chinese Renminbi (“RMB”). The determination of functional currency is based on the criteria of ASC 830 , Foreign Currency Matters . The financial statements of the Company and its Hong Kong subsidiary are translated from the functional currency to the reporting currency, RMB. Monetary assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expense items are translated at the average exchange rate prevailing during the fiscal year. Translation gains and losses are accumulated in other comprehensive loss, as a component of shareholders’ deficit in the consolidated financial statements. Transactions denominated in other than the functional currencies are remeasured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. The foreign exchange differences are recorded in the consolidated statements of comprehensive loss. (e) Convenience translation Amounts in US$ are presented for the convenience of the readers and are translated at the noon buying rate of US$1.00 to RMB6.5250 on December 31, 2020 as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at such rate. (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. (g) Restricted cash Restricted cash mainly represents cash held in escrow as security for financial service and related party’s credit facilities. The Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (h) Short-term investments Short-term investments include senior unsecured note. The Company holds debt classified securities, and such investments are recorded as available-for-sale debt securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in interest income in the consolidated statements of operations and comprehensive income/(loss) during the period in which the gain or loss is realized. (i) Accounts receivable and allowance for doubtful debt Accounts receivable are carried at net realizable value. An allowance for doubtful debt is recorded in the period when loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging and other factors. An accounts receivable is written off when it is deemed uncollectible. (j) Inventories Inventories of the Company are chemical products. Inventories are stated at the lower of cost or net realizable value. Costs of inventory are determined using the weighted average method. Adjustments to reduce the cost of inventories are made, if required, for decreases in sales prices, obsolescence or similar reductions in the estimated net realizable value. (k) Property and equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets as follows: Category Estimated useful life Office equipment 1~3 years Leasehold improvements 5 years Repair and maintenance costs are charged to expenses as incurred. (l) Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with finite useful lives are amortized using a straight-line method. The amortization method reflects the estimated pattern in which the economic benefits of the respective intangible assets are to be consumed. Intangible assets have estimated economic lives from the date of purchase as follows: Category Estimated economic life Purchased software 3 years The Company does not have any indefinite-lived intangible assets. (m) Long-term investment The Company’s long-term investment represents an equity method investment. Investments in equity investees represent investments in entities in which the Company can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323-10, Investments-Equity Method and Joint Ventures Overall (n) Current expected credit losses impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”), which requires entities to measure all expected credit losses for financial assets held at the reporting date using a current expected credit loss model based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted ASC 326 on January 1, 2020 using the modified retrospective transition approach. Based on the nature of the Company’s financial instruments within the scope of this standard, which are primarily accounts receivable and other receivables. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. (o) Impairment of long-lived assets The Company evaluates its long-lived assets or asset group, including intangible assets with finite lives, 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 flows 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 loss was recognized for the years ended December 31, 2018, 2019 and 2020. (p) Fair value measurements of financial instruments The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, notes receivable, unbilled receivables, amounts due from related parties, short-term investments, other receivables, accounts payable, other payables, amounts due to related parties, and short-term borrowings. Other than the non-current amounts due to related parties, the carrying values of these financial instruments approximate to their fair values due to their short-term maturities, which are categorized in level 1. The Company applies ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ● ● ● ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. (q) Revenue recognition Effective January 1, 2017, the Company elected to early adopt the requirements of Accounting Standards Update (ASU) 2014-09, (“ASC 606”) using the full retrospective method. The Company’s revenues are primarily derived from sales of chemical products through direct sales model, provision of matching service through marketplace model, provision of online membership services and provision of financial service. Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services under ASC 606. Chemical trading – direct sales model The Company sells chemical products to customers through an online platform or sales representatives. Sales contracts are entered into with each individual customer. The Company is the principal under the chemical direct sales model as the Company controls the chemical products with the ability to direct the use of, and obtain substantially all the remaining benefits from the chemical products before they are sold to its customers. The Company has a single performance obligation to sell chemical products to the buyers. The Company estimates the amount of variable consideration including sales return using the expected value method and includes variable consideration in the transaction price to the extent that it is probable that a significant reversal will not occur. Revenue for chemical trading under direct sales model is recognized at a point in time when the single performance obligation is satisfied when the chemical products are delivered to the customer. Chemical trading – marketplace model The Company matches product suppliers and platform buyers through its vendor-supplier matching recommendation system. The Company charges a commission fee to either the buyer or seller, depending on which party requests the matching services based on the commission agreements signed. The Company has a single performance obligation to provide the matching service. As the Company is a service provider and does not control the goods prior to transfer to the end customer, the Company recognizes commission fee as an agent on a net basis. The Company considers both the buyer and end customer to be its customers in the transaction. The Company estimates the amount of variable consideration including payment contingent on product delivery to platform buyer using the most likely amount method and includes in the transaction price to the extent that it is probable that a significant reversal will not occur. Revenue for chemical trading under marketplace model is recognized at a point in time when the performance obligation is satisfied upon the completion of the matching service. Online membership service The Company provides access to the users who subscribed for its online membership service to upload their product information on its online platform for promotion purpose and to attend the online trainings and marketing activities organized by the Company during the membership period. The Company typically charges a fixed fee over the membership period. The Company has a single performance obligation to stand ready to perform the membership services during the membership period. As the users simultaneously receive and consume the benefits provided by the Company’s performance as the Company performs, revenue for online membership service is recognized ratably over the contract period. Prior to July 2019, for certain transactions under the direct sales model and marketplace model, the Company provides guarantee on the customers’ loan repayments to certain financial institutions. The guarantees are within the scope of ASC 460, Guarantees, which is accounted for at fair value at inception. The Company first allocates the fair value of the guarantee obligation from the total transaction price and allocates the remaining transaction price to the performance obligation under ASC 606. Subsequently, the Company amortizes the guarantee obligation into revenue outside the scope of ASC 606 as the Company is released from risk under the guarantee. The Company subsequently accounts for the contingent loss arising from the arrangement in accordance with ASC 450, Contingencies. Financial service Starting from July 2019, the Company enters into financial service contracts with its suppliers, customers, and financing providers, including banks and non-bank financial institutions, to facilitate lending arrangements between the financing providers and the customers and suppliers who use the Company’s online platforms. In addition to the loan facilitation service, the Company provides a guarantee to the financing providers on the loan repayments. The guarantees are within the scope of ASC 460, Guarantees. The Company typically charges its customers and suppliers a fixed fee based on a percentage of the loan amount for the facilitation service and the guarantee. The Company first allocates the transaction price to the guarantee obligation at fair value and allocates the remaining transaction price to the facilitation service under ASC 606. The Company recognizes revenue generated from the facilitation service when the Company successfully matches the customers or suppliers with the financing providers. The Company amortizes the guarantee obligation into revenue outside the scope of ASC 606 as the Company is released from risk under the guarantee. The Company subsequently accounts for the contingent loss arising from the guarantee arrangement in accordance with ASC 450, Contingencies. The transaction price allocated to guarantee obligation and the subsequent contingent loss were historically immaterial for the years ended December 31, 2018, 2019 and 2020. The maximum potential undiscounted future payments which the Company would be required to make under its guarantee obligation were RMB26,433, RMB39,773 and RMB49,278 (US$7,552) as of December 31, 2018, 2019 and 2020, respectively. When the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, and the right to consideration is conditioned only on the passage of time, the Company recognizes an unbilled receivable on the consolidated balance sheets. Contract assets, which arise when revenue is recognized prior to invoicing and the right to the amount due from customers is conditioned on something other than the passage of time, such as the completion of a related performance obligation, were nil and as of December 31, 2019 and 2020. When a customer pays consideration before the Company transfers goods or services, the Company records its obligation as a contract liability, which is classified as deferred revenue. (r) Cost of revenues Cost of revenue consists primarily of cost of chemical products sold. (s) Shipping and other handling costs Shipping and other handling costs are expensed as incurred and are included in sales and marketing expenses, which amounted to RMB12,565, RMB13,945 and RMB3,460 (US$530) for the years ended December 31, 2018, 2019 and 2020, respectively. (t) Research and development expenses Research and development expenses consist primarily of personnel-related expenses and rental expenses incurred for the development of, enhancement to, and maintenance of the Company’s technology infrastructure to support its business operations. Research and development costs are expensed as incurred unless such costs qualify for capitalization as software development costs. In order to qualify for capitalization, (i) the preliminary project should be completed, (ii) management has committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended, and (iii) it will result in significant additional functionality in the Company’s services. The amount of costs qualifying for capitalization has been immaterial during the periods presented, and as a result, all development costs were expensed as incurred. (u) Leases The Company adopted ASU No. 2016-02, Leases (Topic 842 package of practical expedients The Company determines if an arrangement is a lease or contains a lease at the inception. For operating leases, the Company recognizes a right-of-use asset (“ROU asset”) and a lease liability based on the present value of the lease payments over the lease term in the consolidated balance sheets at the lease commencement date. For finance leases, assets are included in property and equipment in the consolidated balance sheets. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s leases often include options to extend and lease terms include such extended terms when the Company is reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when the Company is reasonably certain not to exercise those options. (v) Government grants Government grants are provided by the relevant PRC municipal government authorities to subsidize the cost of certain research and development projects. The amount of such government grants are determined solely at the discretion of the relevant government authorities. The government grants of non-operating nature with no further conditions to be met are recorded as non-operating income in “Other income, net” when received. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as operating income when the conditions are met. For the years ended December 31, 2018, 2019 and 2020, government grants in the amounts of RMB1,886, RMB1,699 and RMB6,170 (US$946) were recognized as other income in the consolidated statements of comprehensive loss. (w) Income taxes The Company follows the liability method of accounting for income taxes in accordance with ASC 740 Accounting for Income Taxes , to account for uncertainty in income taxes The Company evaluates its uncertain tax positions using the provisions of ASC 740, which prescribes a recognition threshold that a tax position is required to meet before being recognized in the consolidated financial statements. The Company recognizes in the consolidated financial statements the benefit of a tax position which is “more likely than not” to be sustained under examination based solely on the technical merits of the position assuming a review by tax authorities having all relevant information. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. It is the Company’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense. (x) Share-Based Compensation The Company applies ASC 718, Compensation – Stock Compensation Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The Company, with the assistance of an independent third-party valuation firm, determined the fair value of the stock options granted to employees. The binominal option pricing model was applied in determining the estimated fair value of the options granted to employees. (y) Comprehensive income (loss) Comprehensive income (loss) is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income, (z) Loss per share In accordance with ASC 260, Earnings per Share (aa) Segment reporting The Company’s Chief Executive Officer as the chief operating decision-maker reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole. In accordance with ASC 280, Segment Reporting (bb) Advertising expense Advertising costs are expensed as incurred in accordance with ASC 720-35, Other Expense-Advertising Costs (cc) Value added taxes (“VAT”), business related tax and surcharges The Company is subject to VAT at the rate of 17%, 16%, 13%, 6%, 5% or 3%, depending on whether the entity is a general taxpayer or small-scale taxpayer, and related surcharges on revenue generated from providing services. VAT is reported as a deduction to revenue when incurred and amounted to RMB1,466,302, RMB1,798,899 and RMB1,088,207 (US$166,775) for the years ended December 31, 2018, 2019 and 2020, respectively. 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 accrued expenses and other current liabilities on the consolidated balance sheets. The Company is also subject to certain government surcharges on the VAT payable in the PRC, which is recorded as cost of revenues. (dd) Commitments and contingencies The Company records liabilities for contingencies when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. (ee) Recent accounting pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC 740, Income taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The update is effective in fiscal years beginning after December 15, 2020, and interim periods therein, and early adoption is permitted. Certain amendments in this update should be applied retrospectively or modified retrospectively, all other amendments should be applied prospectively. The Company does not expect the impact of this guidance to have a material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities Investments—Equity Method and Joint Ventures Investments—Equity Method and Joint Ventures In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Concentration of Risks
Concentration of Risks | 12 Months Ended |
Dec. 31, 2020 | |
Concentration of Risks | |
Concentration of Risks | 4. Concentration of Risks (a) Concentration of credit risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. The Company places its cash and cash equivalents and restricted cash with reputable financial institutions with high-credit ratings. There has been no recent history of default in relation to these financial institutions. The Company continues to monitor the financial strength of the financial institutions. Accounts receivable are typically unsecured and derived from revenue earned from customers in the PRC, which are exposed to credit risk. The risk is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. (b) Concentration of suppliers and customers The success of the Company’s business going forward will rely in part on the Company’s ability to continue to obtain and expand business from existing suppliers and customers while also attracting new suppliers and customers. No supplier accounted for 10% or more of the Company’s total costs for the years ended December 31, 2018, 2019 and 2020. No customer accounted for 10% or more of the Company’s revenues for the years ended December 31, 2018, 2019 and 2020 . (c) Current vulnerability due to certain other concentrations The Company participates in a dynamic and competitive high technology industry and believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations or cash flows: changes in the overall demand for services; competitive pressures due to new entrants; advances and new trends in new technology; strategic relationships or customer relationships; regulatory considerations; and risks associated with the Company’s ability to attract and retain employees necessary to support its growth. The Company’s operations could be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective. (d) Currency convertibility risk The Company transacts all of its business 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 (the ‘‘PBOC’’). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. (e) Foreign currency exchange rate risk From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. The depreciation/ (appreciation) of the RMB against US$ was approximately 5.0%, 1.6% and (6.3%) in the years ended December 31, 2018, 2019 and 2020, respectively. The functional currency and the reporting currency of the Company and its Hong Kong subsidiary are the US$ and the RMB, respectively. Most of the Company’s PRC subsidiaries, the VIEs and subsidiary of the VIE’s revenues and costs are denominated in RMB, while a portion of cash and cash equivalents is denominated in U.S. dollars. Any significant revaluation of RMB may materially and adversely affect the Company’s cash flows, revenues, earnings and financial position in U.S. dollars. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, Net | |
Accounts Receivable, Net | 5. Accounts Receivable, Net As of December 31, 2019 2020 RMB RMB US$ Accounts receivable 40,464 27,309 4,185 Allowance for doubtful accounts (20,040) (21,346) (3,271) Total accounts receivable, net 20,424 5,963 914 An analysis of the allowance for doubtful accounts is as follows: As of December 31, 2019 2020 RMB RMB US$ Balance at beginning of the year 15,763 20,040 3,071 Provision 8,487 1,306 200 Reversal (4,210) — — Write-off — — — Balance at end of the year 20,040 21,346 3,271 |
Short-term investments
Short-term investments | 12 Months Ended |
Dec. 31, 2020 | |
Short-term investments | |
Short-term investments | 6 . Short-term investments On June 2020, the Company purchased a US $ 51,500 senior unsecured note issued by a third party, Strategic Global Investments. The Note matures on June 2023 and bears interest at 6.25% per annum, on an annual and non-compounded basis, payable in full at maturity date. The Company may request the issuer to redeem at any time after the issuance of the Note by giving 14 days prior written notice. As of December 31, 2020, the fair value of this investment is US$51,500. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2020 | |
Inventories, Net | |
Inventories, Net | 7. Inventories, Net Inventories consist of the following: As of December 31, 2019 2020 RMB RMB US$ Chemical products 4,351 2,821 432 Provision for obsolete stock — — — Total 4,351 2,821 432 No inventories were pledged for the years ended December 31, 2019 and 2020. |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepayments and Other Current Assets | |
Prepayments and Other Current Assets | 8. Prepayments and Other Current Assets Prepayments and other current assets consist of the following: As of December 31, 2019 2020 RMB RMB US$ Prepayments to suppliers, net 156,958 220,184 33,745 Capitalized listing expenses 35,261 Prepaid expenses 21,436 512 78 Other receivables, net 3,195 6,735 1,032 VAT recoverable — 1,615 248 Total 216,850 229,046 35,103 As of December 31, 2019, and 2020, prepayments to suppliers and other receivables are net of allowance for doubtful accounts of RMB41,569 and RMB44,745 (US$6,857), respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment, Net | |
Property and Equipment, Net | 9. Property and Equipment, Net Property and equipment consist of the following: As of December 31, 2019 2020 RMB RMB US$ At cost: Office equipment 4,133 4,137 634 Leasehold improvements 2,695 797 122 6,828 4,934 756 Less: accumulated depreciation (5,722) (4,209) (645) Property and equipment, net 1,106 725 111 For the years ended December 31, 2018, 2019 and 2020, the Company recorded depreciation expenses of RMB1,373, RMB1,509 and RMB584 (US$90), respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net | |
Intangible Assets, Net | 10. Intangible Assets, Net Intangible assets consist of the following: As of December 31, 2019 2020 RMB RMB US$ At cost: Purchased software 4,210 4,326 663 4,210 4,326 663 Less: accumulated amortization (2,650) (3,790) (581) Intangible assets, net 1,560 536 82 For the years ended December 31, 2018, 2019 and 2020, the Company recorded amortization expenses of RMB1,065, RMB1,541and RMB1,140 (US$175), respectively. The intangible assets are amortized using the straight-line method, which is the Company’s best estimate of how these assets will be economically consumed over their respective estimated useful lives of 3 years. The annual estimated amortization expenses for the intangible assets for each of the next five years are as follows: RMB US$ For the years ending December 31, 2021 456 70 2022 79 12 2023 and thereafter 1 — 536 82 |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Short-term Borrowings | |
Short-term Borrowings | 11. Short-term Borrowings Short-term borrowings represented RMB denominated borrowings obtained from financial institutions with repayment terms of less than three months. These borrowings outstanding as of December 31, 2019 and December 31, 2020 bore weighted average interest rates of 10.00% per annum and 3.50% per annum and were secured by other receivables of nil and nil, respectively. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses and Other Liabilities | |
Accrued Expenses and Other Liabilities | 12. Accrued Expenses and Other Liabilities The components of accrued expenses and other liabilities are as follows: As of December 31, 2019 2020 RMB RMB US$ Payroll and welfare payables 18,226 33,144 5,080 VAT and other tax payables 46,465 29,257 4,484 Accrued expenses 17,499 16,171 2,478 Deposits from customers 7,005 35,109 5,381 Logistic fee payables 4,172 571 88 Payable to employee stock — 12,813 1,964 Others 9,659 5,609 858 103,026 132,674 20,333 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenues | |
Revenues | 13. Revenues The following table presents a disaggregation of revenue from contracts with customers based on different service lines, for the years ended December 31, 2018, 2019 and 2020. All revenues are generated within the same reportable segment: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Chemical trading – direct sales model 9,045,458 13,167,719 7,587,004 1,162,759 Chemical trading – market place model 4,387 26,513 107 16 Online membership service 3,421 10,650 8,740 1,339 Financial service — 917 465 71 Others — 1,516 96 16 9,053,266 13,207,315 7,596,412 1,164,201 Revenue recognized that was included in the deferred revenue balance at the beginning of the period was RMB44,843, RMB153,467 and RMB25,545 for the years ended December 31, 2018, 2019 and 2020, respectively. The following table reflects the changes in unbilled receivables and contract liabilities as of December 31, 2019 and 2020: As of December 31, 2019 2020 RMB RMB US$ Unbilled receivables 62,529 51,825 7,943 Deferred revenue 107,181 81,636 12,511 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | 14. Income Taxes Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain arising in the Cayman Islands. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong MKD HK is incorporated in Hong Kong and is subject to Hong Kong profits tax rate of 16.5% on its activities conducted in Hong Kong. Additionally, upon payments of dividends by the Company to its shareholders, no HK withholding tax will be imposed. PRC The Company’s subsidiaries and VIEs in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the ‘‘EIT Law’’), which was effective since January 1, 2008, except for the following entities eligible for preferential tax rates. In October 2016, Shanghai MOLBASE qualified as High and New Technology Enterprise (“HNTE”) and was eligible for 15% preferential tax rate effective for three consecutive years. Shanghai MOLBASE reapplied for HNTE certificate in 2019 and the approval was obtained on January 10, 2020 with a retroactive effect from 2019 to 2021. In 2019 and 2020, Shanghai MOUHUA was qualified for small and micro-sized enterprise (“SME”) and became eligible for both the 50% reduction of taxable income and the reduced EIT rate of 20% . Accordingly, for the years ended December 31, 2019 and 2020, Shanghai MOHUA enjoyed 50% reduction of taxable income and the reduced EIT rate of Dividends, interests, rent or royalties payable by the Company’s PRC subsidiaries to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax. The Company’s loss before income tax consisted of: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Non-PRC (124,022) (49,214) (192,799) (29,548) PRC (130,617) (143,869) (132,781) (20,350) (254,639) (193,083) (325,580) (49,898) The current and deferred portions of income tax expenses included in the consolidated statements of comprehensive loss were as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Current — 465 2,458 377 Deferred — — — — Income tax expenses — 465 2,458 377 The reconciliations of the income tax expenses for the years ended December 31, 2018, 2019 and 2020 were as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Loss before income tax expense (254,639) (193,083) (325,580) (49,898) PRC statutory tax rate 25 % 25 % 25 % 25 % Income tax benefits at PRC statutory tax rate of 25% (63,660) (48,271) (81,395) (12,475) Additional deduction of research and development expenses — (1,202) (4,941) (757) Effect of different tax rates in different jurisdictions 31,006 12,303 48,200 7,388 Preferential rate 1,137 — — — Statutory income/(expense) (1,547) (3,569) 3,546 543 Non-deductible expenses 1,138 4,595 156 24 Current and deferred tax rate differences (1,313) — — — Change in valuation allowance 33,239 36,609 36,892 5,654 Income tax expenses — 465 2,458 377 The significant components of the Company’s deferred tax assets were as follows: As of December 31, 2019 2020 RMB RMB US$ Non-current deferred tax assets Allowance for doubtful debt 9,442 7,682 1,177 Impairment of a long-term investment — — — Advertising expense 41 183 28 Additional social insurance 1,086 1,086 166 Accrued expense and other current liability 1,907 772 118 Tax losses 38,040 75,846 11,625 Less: valuation allowance (50,516) (85,569) (13,114) Deferred tax assets, net — — — The Company operates through subsidiaries, VIEs and the subsidiary of the VIE and valuation allowance is considered for each of the entities on an individual basis. The Company recorded valuation allowance against deferred tax assets of those entities that were in a three-year cumulative financial loss and are not forecasting profits in the near future as of December 31, 2019 and 2020. In making such determination, the Company also evaluated a variety of factors including the Company’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2020, the Company had taxable losses of RMB303,384 (US$46,495) derived from entities in the PRC, which can be carried forward per tax regulation to offset future net profit for income tax purposes. The PRC taxable loss will expire from December 31, 2021 to 2030 if not utilized. The Company plans to indefinitely reinvest the undistributed earnings of its subsidiaries, the VIEs and the subsidiary of the VIE located in the PRC. As of December 31, 2020, the total amount of undistributed earnings from these entities was nil and no withholding tax has been accrued. Unrecognized Tax Benefits As of December 31, 2019 and 2020, the Company had unrecognized tax benefit of RMB3,006 and RMB5,650 (US$866), respectively, all of which were presented on a net basis against the deferred tax assets related to tax loss carry forwards on the consolidated balance sheets and of which, full valuation allowance would have been recorded. The unrecognized tax benefit was mainly related to income of the Company not properly recorded. It is possible that the amount of unrecognized benefits will further change in the next 12 months; however, an estimate of the range of the possible change cannot be made at this moment. As of December 31, 2019 and 2020, there were RMB2,965 and RMB2,645 (US$405) of unrecognized tax benefits that, if ultimately recognized, would affect the annual effective tax rate excluding the relating impact on valuation allowance. A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows: For the years ended December 31, 2019 2020 RMB RMB US$ Balance at the beginning of year — 3,006 461 Additions based on tax positions related to the current year 2,252 4,896 750 Additions related to prior year tax position 1,092 — — Decreases related to prior year tax position (338) (2,252) (345) Balance at the end of year 3,006 5,650 866 For the years ended December 31, 2017, 2018 and 2019, no interest expense was accrued in relation to the unrecognized tax benefits. Accumulated interest expenses recorded in unrecognized tax benefits were nil and nil as of December 31, 2018 and 2019, respectively. As of December 31, 2020, the tax years ended December 31, 2015 through 2020 for the PRC subsidiaries remain open for statutory examination by the PRC tax authorities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Related Party Transactions | 15. Related Party Transactions Related parties Name Relationship with the Company Chang Dongliang Founder and principal shareholder of the parent company MOLBASE Inc. Parent company MOLBASE (HK) Limited Entity under common control of the parent company MOLBASE (Shanghai) Biotechnology Co., Ltd. Entity under common control of the parent company Shanghai MOYU Biotechnology Co., Ltd. Entity under common control of the parent company MOXIN Commercial Factoring (Shenzhen) Co., Ltd. Entity under common control of the parent company Molbase Logistic Management Co., Ltd. Entity under common control of the parent company The Company had the following significant related party transactions: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Services provided MOLBASE (Shanghai) Biotechnology Co., Ltd. — 9,968 — — Henan Zhongxing MOLBASE Data Service Co., Ltd — — 347 53 Purchase of goods MOLBASE (Shanghai) Biotechnology Co., Ltd. — 30,891 4,012 615 Purchase of services Molbase Logistic Management Co., Ltd. — 999 726 111 Repayment of consideration MOLBASE (Shanghai) Biotechnology Co., Ltd. — 104,190 — — Guarantee provided on loans for (1) MOLBASE (Shanghai) Biotechnology Co., Ltd. — 50,505 50,571 7,750 Loans from MOLBASE (HK) Limited 20,875 74,607 18,832 2,886 MOLBASE Inc. — 14,274 135 21 MOLBASE (Shanghai) Biotechnology Co., Ltd. — — 3,940 604 Loans to Molbase Logistic Management Co., Ltd. — 794 1,173 180 (1) In 2019, the Company provided guarantees of RMB50,505 (US$7,255) for MOLBASE (Shanghai) Biotechnology Co., Ltd.’s bank borrowings, which were all due in 2020. In 2020, the Company provided guarantees of RMB50,571 (US$7,750) for MOLBASE (Shanghai) Biotechnology Co., Ltd.’s bank borrowings, and all these borrowings will expire in 2021. The Company had the following related party balances as of December 31, 2019 and 2020: As of December 31, 2019 2020 RMB RMB US$ Amounts due from related parties: Current: Molbase Logistic Management Co., Ltd. 794 1,126 173 MOXIN Commercial Factoring (Shenzhen) Co., Ltd. 20 — — Shanghai MOYU Biotechnology Co., Ltd. 7 6 1 Chang Dongliang 7 12 2 828 1,144 175 Amounts due to related parties: Current: MOLBASE (HK) Limited (1) 77,520 87,782 13,453 MOLBASE (Shanghai) Biotechnology Co., Ltd. (3) 60,533 4,495 689 MOLBASE Inc. (2) 5,905 17,076 2,617 Chang Dongliang — 1,833 281 143,958 111,186 17,040 Non-current: MOLBASE (HK) Limited (1) 18,528 — — MOLBASE Inc. (2) 10,605 — — MOLBASE (Shanghai) Biotechnology Co., Ltd. 2,487 — — Chang Dongliang 1,833 — — 33,453 — — (1) As of December 31, 2019 and 2020, amounts due to MOLBASE (HK) Limited represented the cash funding support to the Company for its operations. These balances were unsecured and interest-free. As of December 31, 2020, the due dates for the loans of RMB18,528 (US$2,840) were December 31, 2021, while other balances have no fixed terms of repayment. (2) As of December 31, 2019 and 2020, amounts due to MOLBASE Inc. represented the cash funding support to the Company for its operations. These balances were unsecured and interest-free. As of December 31, 2020, the due dates for the loans of RMB12,823 (US$1,965) were December 31, 2021, while other balances have no fixed terms of repayment. (3) As of December 31, 2019 and 2020, amounts due to MOLBASE (Shanghai) Biotechnology Co., Ltd. represented funds provided by Shanghai Biotech to the Company for its operations. Prior to the Reorganization, Shanghai Biotech obtained various short-term and long-term loans from banks to develop the chemical e-commerce business. Upon the Reorganization, the amounts due to Shanghai Biotech will be due in 18 months subsequent to the Reorganization. On June 28, 2019, the Company signed a supplemental agreement with Shanghai Biotech to extend the payment due date from 18 months to 24 months subsequent to the Reorganization. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital | |
Share Capital | 16. Share Capital The Company historically operated its business through its subsidiaries, VIEs and the subsidiary of the VIE. The Company, through a series of transactions which are accounted for as a reorganization of entities under common control, became the ultimate parent entity of these subsidiaries, VIEs and the subsidiary of the VIE on December 21, 2018. Accordingly, these consolidated financial statements reflect the historical operations of the Company as if the current organization structure had been in existence throughout the periods presented. On February 28, 2018, the Company issued 310,627,024 ordinary shares with par value of US$0.00005 to MOLBASE Inc. in connection with the incorporation of the Company (Note 1). As of December 31, 2020, 334,999,682 Class A ordinary shares were issued (December 31, 2019: 255,807,290), of which 304,488,317 shares were outstanding (December 31, 2019: 255,807,290), and 54,819,733 Class B ordinary shares were issued and outstanding (December 31, 2019: 54,819,733). In the first half 2020, the Company issued 35,005,761 ordinary shares. The Company did not pay or declare any dividends on ordinary shares in the years ended December 31, 2018, 2019 and 2020. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Loss Per Share | |
Loss Per Share | 17. Loss Per Share The following table sets forth the computation of basic and diluted loss per share for the following periods: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Numerator: Net loss attributable to ordinary shareholders (254,639) (193,548) (327,997) (50,268) Denominator: Weighted-average number of ordinary shares outstanding — basic 310,627,024 310,627,024 348,160,637 348,160,637 Adjustments for dilutive options — — 27,892,119 27,892,119 Weighted-average number of ordinary shares outstanding —diluted 310,627,024 310,627,024 376,052,756 376,052,756 Loss per share — basic and diluted Basic net loss per share attributable to ordinary shareholders (RMB) (0.82) (0.62) (0.94) (0.14) Diluted net loss per share attributable to ordinary shareholders (RMB) (0.82) (0.62) (0.87) (0.13) |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-Based Compensation | |
Share-Based Compensation | 18. Share-Based Compensation On November 27, 2018, the Board of Directors of the Company approved the 2018 Share Plan (the “Plan”) for the purpose of providing incentives and rewards to employees and executives. According to the Plan, 48,676,179 ordinary shares have been reserved to be issued to any qualified employees, directors and officers. In October 2019, the Company adopted the 2019 Share Incentive Plan, or the 2019 Plan, effective on December 27, 2019, for the same purpose. Under 2018 Share Plan, the Company is authorized to grant shares, options and restricted share units. The maximum aggregate number of shares which may be issued under the 2018 Share Plan is 48,676,179. Under the 2019 Plan, the maximum aggregate number of shares was initially 10,353,810, subject to automatic annual increase. Upon the approval of the Plan on November 27, 2018, the Company granted 41,108,821 options to employees at a pre-determined exercise price and reached mutual understanding of the terms and conditions. In 2020, the Company granted 2,300,000 options with the same terms and conditions. The options granted have expiration periods ranging from 7 to 10 years from the grant date and are subject to immediate vesting upon the grant date or under a graded vesting schedule over 1 to 4 years . Vested shares can be exercised by the employee at any time. A summary of the employee equity award activity under the 2018 Plan is stated below: - Weighted- Weighted- average Weighted- average remaining Aggregate Number of average grant- date contractual intrinsic options exercise price fair value term value US$ US$ Years US$ Outstanding, December 31, 2019 39,512,055 0.42 0.75 6.2 172,436 Granted 2,300,000 0.61 0.90 3.4 1,010 Exercised (6,898,287) 0.06 0.91 3.48 4,866,860 Forfeited (3,126,054) 0.80 0.65 8.0 126 Outstanding, December 31, 2020 31,787,714 0.45 0.95 5.2 12,475 Vested and expected to vest at December 31, 2020 31,787,714 0.45 0.95 5.2 12,475 Exercisable at December 31, 2020 25,674,873 0.36 0.77 4.6 12,233 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the fair value of the underlying stock at each reporting date, for those awards that have an exercise price below the estimated fair value of the Company’s shares. As of December 31, 2020, the Company had options outstanding to purchase an aggregate of 31,787,714 shares with an exercise price below the estimated fair value of the Company’s shares, resulting in an aggregate intrinsic value of RMB 81,399 (US$12,475). Total intrinsic value of options exercised for the years ended December 31, 2019 and 2020 was nil and US$0.06, respectively. The total fair value of options vested during the years ended December 31, 2019 and 2020 was RMB207,524 and RMB156,450 (US$23,977), respectively. Fair value of employee share options The fair value of share options was determined using the binomial option valuation model, with the assistance from an independent third-party valuation firm. The binomial model requires the input of highly subjective assumptions, including the expected share price volatility and the suboptimal early exercise factor. The risk-free rate for periods within the contractual life of the options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. For expected volatilities, the Company has made reference to historical volatilities of several comparable companies. The suboptimal early exercise factor was estimated based on the Company’s expectation of exercise behavior of the grantees. The estimated fair value of the ordinary shares at the grant date, was determined with the assistance from an independent third-party valuation firm. The Company’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The assumptions used to estimate the fair value of the share options granted to employees are as follows: 2018 2019 Risk-free interest rate 2.93%~3.06 % 1.95%~1.96 % Expected volatility 55.46%~58.33 % 56.21%~56.25 % Suboptimal early exercise multiple 2.2 and 2.8 2.8 Expected post-vesting forfeiture rate 4.9 % 5.0 % Fair value per ordinary share US$ 0.97 US$ 1.83 The aggregate fair value of the outstanding options at the grant date was determined to be RMB156,450 (US$23,977) and such amount is recognized as compensation expense using the accelerated method for all share options granted. As of December 31, 2020, there was RMB28,899 (US$4,429) of unrecognized share-based compensation cost, related to unvested options which is expected to be recognized over a weighted-average period of 0.51 years. Total unrecognized compensation cost may be adjusted for future changes when actual forfeitures incurred. The Company recognized share-based compensation expense for the years ended December 31, 2018, 2019 and 2020 as follows: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Sales and marketing expenses 7,942 6,860 14,856 2,277 General and administrative expenses 109,956 28,773 120,699 18,498 Research and development expenses 6,124 3,359 4,246 651 Total 124,022 38,992 139,801 21,426 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Net Assets | |
Restricted Net Assets | 19. Restricted Net Assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries, the VIEs and subsidiary of the VIE. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries, the VIEs and subsidiary of the VIE 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, the VIEs and subsidiary of the VIE. 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 fund 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. The WFOE was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. For the years ended December 31, 2019 and 2020, WFOE did not have after-tax profit and therefore no statutory reserves have been allocated. Foreign exchange and other regulations in the PRC may further restrict the Company’s subsidiaries, VIEs and the subsidiary of VIE from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include paid-in capital and statutory reserves of the Company’s PRC subsidiaries and the equity of the VIEs, and the subsidiary of the VIE as determined pursuant to PRC generally accepted accounting principles. As of December 31, 2019, and 2020, restricted net assets of the Company’s PRC subsidiaries, the VIEs and the subsidiary of the VIE were RMB61,199 and RMB277 (US$42), respectively. |
Mainland China Employee Contrib
Mainland China Employee Contribution Plan | 12 Months Ended |
Dec. 31, 2020 | |
Mainland China Employee Contribution Plan | |
Mainland China Employee Contribution Plan | 20. Mainland China Employee Contribution Plan As stipulated by the regulations of the PRC, full-time employees of the Company are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Company is required to make contributions to the plan based on certain percentages of employees’ salaries. The total expenses the Company incurred for the plan were RMB18,414, RMB26,229 and RMB16,182 (US$2,480) for the years ended December 31, 2018, 2019 and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 21. Leases Leases are classified as operating leases or finance leases in accordance with ASC 842. The Company do not assume renewals in our determination of the lease term unless the renewals are reasonably certain to be exercised at lease commencement. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2019, the weighted average remaining lease term was 0.91 years and weighted average discount rate was 7.80% for the Company’s operating leases. As of December 31, 2020, the weighted average remaining lease term was 0.17 years and weighted average discount rate was 4.75% for the Company’s operating leases. Operating lease cost for the year ended December 31, 2019 was RMB 2,930 (US$ 421 ). Short-term lease cost and variable lease cost was nil for the year ended December 31, 2019 . Operating lease cost for the year ended December 31, 2020 was RMB 2,496 (US$ 383 ). Short-term lease cost and variable lease cost was nil for the year ended December 31, 2020 . Future lease payments under operating leases as of December 31, 2020 are as follows: Operating Leases RMB US$ 2021 1,650 253 2022 1,458 223 2023 1,458 223 Total undiscounted cash flows 4,567 700 Less imputed interest 372 57 Total lease liabilities balance 4,195 643 Supplemental cash flow information related to operating leases is as follows: For the year ended December 31, 2019 2020 RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Cash payments for operating leases 1,620 2,496 383 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 22. Commitments and Contingencies Commitments As of December 31, 2020, the Company has the following commitments to purchase certain chemical products: RMB US$ 2021 16,652 2,552 2022 and thereafter 16,652 2,552 Contingencies For the years ended December 31, 2019 2020 RMB RMB US$ Compensation for employee resignation — 341 52 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | 23. Subsequent Events On March 3, 2021, the Company signed the registration rights agreement with White Lion Capital, LLC, for $50,000 of Purchase Notice Shares. On April 7, 2021, the company signed a securities purchase agreement with Streeterville Capital , of convertible debentures in the form attached hereto as “Exhibit A” (the “Convertible Debentures”), which shall be convertible into the Company’s American Depository Shares (“ADSs” and the ADSs issued upon conversion of the Convertible Debentures, the “Conversion Shares”) each ADS representing three Class A ordinary shares of the Company (the “Ordinary Shares”), of which $2,500 shall be purchased upon the signing this Agreement (the “First Closing”), $2,500 shall be purchased upon delivery to Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”), of the Purchase Shares (as defined below) (the “Second Closing”), and $2,500 shall be purchased upon the filing of a Registration Statement with the U.S. Securities and Exchange Commission registering the resale of the Conversion Shares by the Buyers (the “Third Closing”). |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company Only Condensed Financial Information | |
Parent Company Only Condensed Financial Information | 24. Parent Company Only Condensed Financial Information Condensed balance sheets As of December 31, 2019 2020 RMB RMB US$ ASSETS Current Assets Cash and cash equivalents 446 2,818 432 Prepayments and other current assets 56,293 396,995 60,842 Total current assets 56,739 399,813 61,274 Deferred assets — 13,725 2,103 Total Assets 56,739 413,538 63,377 LIABILITIES AND SHAREHOLDERS’ DEFICIT Current Liabilities Accrued expenses and other liabilities 17,499 38,723 5,935 Amounts due to related parties 36,126 57,310 8,783 Total current liabilities 53,625 96,033 14,718 Non-current Liabilities Amounts due to related parties 12,822 10,606 1,625 Loss in excess of investments in subsidiaries, the VIEs and subsidiary of the VIE 206,789 334,826 51,315 Total non-current liabilities 219,611 345,432 52,940 Total Liabilities 273,236 441,465 67,658 Shareholders’ deficit Ordinary shares (par value of US$0.00005 per share; 1,000,000,000 shares authorized; 310,627,024 and 389,819,415 shares issued outstanding 98 114 17 Additional paid-in capital 537,618 1,075,064 164,761 Accumulated other comprehensive loss (316) (21,192) (3,248) Accumulated deficit (753,897) (1,081,914) (165,811) Total shareholders’ deficit (216,497) (27,928) (4,281) TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 56,739 413,537 63,377 Condensed statements of comprehensive loss For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Sales and marketing expenses (7,942) (6,860) (23,557) (3,610) General and administrative expenses (109,956) (38,428) (164,752) (25,250) Research and development expenses (6,124) (3,359) (8,537) (1,308) Total operating expenses (124,022) (48,647) (196,846) (30,168) Operating loss (124,022) (48,647) (196,846) (30,168) Other income — — 3,263 500 Foreign exchange income — 262 3 — Share of losses from subsidiaries, the VIEs and subsidiary of the VIE (130,617) (145,163) (127,691) (19,569) Loss before income tax (254,639) (193,548) (321,271) (49,237) Income tax expenses — — 6,726 1,031 Net loss (254,639) (193,548) (327,997) (50,268) Other comprehensive loss, net of tax of nil Foreign currency translation difference, net of tax of nil — 316 20,876 3,199 Comprehensive loss (254,639) (193,232) (307,121) (47,069) Condensed statements of cash flows For the years ended December 31 2018 2019 2020 RMB RMB RMB US$ Net cash used in operating activities — (9,709) (506,681) (77,651) Net cash generated from investing activities — — — — Net cash generated from financing activities — 10,155 509,053 78,016 Net increase in cash, cash equivalents and restricted cash — 446 2,372 365 Cash, cash equivalents and restricted cash at beginning of year — — 446 68 Cash, cash equivalents and restricted cash at end of year — 446 2,818 433 Basis of presentation Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries, the VIEs and subsidiary of the VIE. The parent company records its investment in its subsidiaries, the VIEs and subsidiary of the VIE under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures The parent company’s condensed financial statements should be read in conjunction with the Company’s consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”). The Company experienced a net loss of RMB327,997 (US$50,268) and negative cash flows from operating activities of RMB234,048 (US$35,870) for the year ended December 31, 2020. As of December 31, 2020, the Company had current liabilities exceeded its current assets by RMB29,420 (US$4,509). The management believes the Company has the ability to fulfill its financial obligations and will continue as a going concern considering the cash inflows from Initial Public Offering with a total offering size of approximately US$61,870, though in January 2020, the Company purchased a US$58,400 note issued by a third party. In June 2020, the note was fully redeemed and the Company purchased a US$51,500 senior unsecured note issued by another third party. The Note matures on June 15, 2023 and bears interest at 6.25% per annum, on an annual and non-compounded basis, payable in full at maturity date. The Company may request the issuer to redeem at any time after the issuance of the Note by giving 14 days prior written notice. As a result, it is appropriate for the consolidated financial statements to be prepared on a going concern basis. |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and the subsidiary of the VIE. All significant inter-company transactions and balances between the Company, its subsidiaries, the VIEs and subsidiary of the VIE have been eliminated upon consolidation. |
Use of estimates | (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but not limited to, estimating variable consideration, the useful lives of long-lived assets and intangible assets, determining the provision for accounts receivable and prepayments, determining the provision for inventories, impairment assessment for long-term investment and long-lived assets, accounting for share-based compensation, valuation allowance for deferred tax assets, measurement of right-of-use assets and lease liabilities. Changes in facts and circumstances may result in revised estimates. Actual results could materially differ from those estimates. |
Foreign currency | (d) Foreign currency The functional currency of the Company and its Hong Kong subsidiary is the United States dollars (“US$”). The Company’s PRC subsidiaries, the VIEs and the subsidiary of the VIE determined their functional currency to be the Chinese Renminbi (“RMB”). The determination of functional currency is based on the criteria of ASC 830 , Foreign Currency Matters . The financial statements of the Company and its Hong Kong subsidiary are translated from the functional currency to the reporting currency, RMB. Monetary assets and liabilities of the subsidiaries are translated into RMB using the exchange rate in effect at each balance sheet date. Income and expense items are translated at the average exchange rate prevailing during the fiscal year. Translation gains and losses are accumulated in other comprehensive loss, as a component of shareholders’ deficit in the consolidated financial statements. Transactions denominated in other than the functional currencies are remeasured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. The foreign exchange differences are recorded in the consolidated statements of comprehensive loss. |
Convenience translation | (e) Convenience translation Amounts in US$ are presented for the convenience of the readers and are translated at the noon buying rate of US$1.00 to RMB6.5250 on December 31, 2020 as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at such rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. |
Restricted cash | (g) Restricted cash Restricted cash mainly represents cash held in escrow as security for financial service and related party’s credit facilities. The Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash |
Short-term investments | (h) Short-term investments Short-term investments include senior unsecured note. The Company holds debt classified securities, and such investments are recorded as available-for-sale debt securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. Realized gains or losses are included in interest income in the consolidated statements of operations and comprehensive income/(loss) during the period in which the gain or loss is realized. |
Accounts receivable and allowance for doubtful debt | (i) Accounts receivable and allowance for doubtful debt Accounts receivable are carried at net realizable value. An allowance for doubtful debt is recorded in the period when loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging and other factors. An accounts receivable is written off when it is deemed uncollectible. |
Inventories | (j) Inventories Inventories of the Company are chemical products. Inventories are stated at the lower of cost or net realizable value. Costs of inventory are determined using the weighted average method. Adjustments to reduce the cost of inventories are made, if required, for decreases in sales prices, obsolescence or similar reductions in the estimated net realizable value. |
Property and equipment | (k) Property and equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets as follows: Category Estimated useful life Office equipment 1~3 years Leasehold improvements 5 years Repair and maintenance costs are charged to expenses as incurred. |
Intangible assets | (l) Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with finite useful lives are amortized using a straight-line method. The amortization method reflects the estimated pattern in which the economic benefits of the respective intangible assets are to be consumed. Intangible assets have estimated economic lives from the date of purchase as follows: Category Estimated economic life Purchased software 3 years The Company does not have any indefinite-lived intangible assets. |
Long-term investment | (m) Long-term investment The Company’s long-term investment represents an equity method investment. Investments in equity investees represent investments in entities in which the Company can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323-10, Investments-Equity Method and Joint Ventures Overall |
Current expected credit losses impairment | (n) Current expected credit losses impairment In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”), which requires entities to measure all expected credit losses for financial assets held at the reporting date using a current expected credit loss model based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted ASC 326 on January 1, 2020 using the modified retrospective transition approach. Based on the nature of the Company’s financial instruments within the scope of this standard, which are primarily accounts receivable and other receivables. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. |
Impairment of long-lived assets | (o) Impairment of long-lived assets The Company evaluates its long-lived assets or asset group, including intangible assets with finite lives, 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 flows 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 loss was recognized for the years ended December 31, 2018, 2019 and 2020. |
Fair value measurements of financial instruments | (p) Fair value measurements of financial instruments The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, notes receivable, unbilled receivables, amounts due from related parties, short-term investments, other receivables, accounts payable, other payables, amounts due to related parties, and short-term borrowings. Other than the non-current amounts due to related parties, the carrying values of these financial instruments approximate to their fair values due to their short-term maturities, which are categorized in level 1. The Company applies ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ● ● ● ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. |
Revenue recognition | (q) Revenue recognition Effective January 1, 2017, the Company elected to early adopt the requirements of Accounting Standards Update (ASU) 2014-09, (“ASC 606”) using the full retrospective method. The Company’s revenues are primarily derived from sales of chemical products through direct sales model, provision of matching service through marketplace model, provision of online membership services and provision of financial service. Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services under ASC 606. Chemical trading – direct sales model The Company sells chemical products to customers through an online platform or sales representatives. Sales contracts are entered into with each individual customer. The Company is the principal under the chemical direct sales model as the Company controls the chemical products with the ability to direct the use of, and obtain substantially all the remaining benefits from the chemical products before they are sold to its customers. The Company has a single performance obligation to sell chemical products to the buyers. The Company estimates the amount of variable consideration including sales return using the expected value method and includes variable consideration in the transaction price to the extent that it is probable that a significant reversal will not occur. Revenue for chemical trading under direct sales model is recognized at a point in time when the single performance obligation is satisfied when the chemical products are delivered to the customer. Chemical trading – marketplace model The Company matches product suppliers and platform buyers through its vendor-supplier matching recommendation system. The Company charges a commission fee to either the buyer or seller, depending on which party requests the matching services based on the commission agreements signed. The Company has a single performance obligation to provide the matching service. As the Company is a service provider and does not control the goods prior to transfer to the end customer, the Company recognizes commission fee as an agent on a net basis. The Company considers both the buyer and end customer to be its customers in the transaction. The Company estimates the amount of variable consideration including payment contingent on product delivery to platform buyer using the most likely amount method and includes in the transaction price to the extent that it is probable that a significant reversal will not occur. Revenue for chemical trading under marketplace model is recognized at a point in time when the performance obligation is satisfied upon the completion of the matching service. Online membership service The Company provides access to the users who subscribed for its online membership service to upload their product information on its online platform for promotion purpose and to attend the online trainings and marketing activities organized by the Company during the membership period. The Company typically charges a fixed fee over the membership period. The Company has a single performance obligation to stand ready to perform the membership services during the membership period. As the users simultaneously receive and consume the benefits provided by the Company’s performance as the Company performs, revenue for online membership service is recognized ratably over the contract period. Prior to July 2019, for certain transactions under the direct sales model and marketplace model, the Company provides guarantee on the customers’ loan repayments to certain financial institutions. The guarantees are within the scope of ASC 460, Guarantees, which is accounted for at fair value at inception. The Company first allocates the fair value of the guarantee obligation from the total transaction price and allocates the remaining transaction price to the performance obligation under ASC 606. Subsequently, the Company amortizes the guarantee obligation into revenue outside the scope of ASC 606 as the Company is released from risk under the guarantee. The Company subsequently accounts for the contingent loss arising from the arrangement in accordance with ASC 450, Contingencies. Financial service Starting from July 2019, the Company enters into financial service contracts with its suppliers, customers, and financing providers, including banks and non-bank financial institutions, to facilitate lending arrangements between the financing providers and the customers and suppliers who use the Company’s online platforms. In addition to the loan facilitation service, the Company provides a guarantee to the financing providers on the loan repayments. The guarantees are within the scope of ASC 460, Guarantees. The Company typically charges its customers and suppliers a fixed fee based on a percentage of the loan amount for the facilitation service and the guarantee. The Company first allocates the transaction price to the guarantee obligation at fair value and allocates the remaining transaction price to the facilitation service under ASC 606. The Company recognizes revenue generated from the facilitation service when the Company successfully matches the customers or suppliers with the financing providers. The Company amortizes the guarantee obligation into revenue outside the scope of ASC 606 as the Company is released from risk under the guarantee. The Company subsequently accounts for the contingent loss arising from the guarantee arrangement in accordance with ASC 450, Contingencies. The transaction price allocated to guarantee obligation and the subsequent contingent loss were historically immaterial for the years ended December 31, 2018, 2019 and 2020. The maximum potential undiscounted future payments which the Company would be required to make under its guarantee obligation were RMB26,433, RMB39,773 and RMB49,278 (US$7,552) as of December 31, 2018, 2019 and 2020, respectively. When the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, and the right to consideration is conditioned only on the passage of time, the Company recognizes an unbilled receivable on the consolidated balance sheets. Contract assets, which arise when revenue is recognized prior to invoicing and the right to the amount due from customers is conditioned on something other than the passage of time, such as the completion of a related performance obligation, were nil and as of December 31, 2019 and 2020. When a customer pays consideration before the Company transfers goods or services, the Company records its obligation as a contract liability, which is classified as deferred revenue. |
Cost of revenues | (r) Cost of revenues Cost of revenue consists primarily of cost of chemical products sold. |
Shipping and other handling costs | (s) Shipping and other handling costs Shipping and other handling costs are expensed as incurred and are included in sales and marketing expenses, which amounted to RMB12,565, RMB13,945 and RMB3,460 (US$530) for the years ended December 31, 2018, 2019 and 2020, respectively. |
Research and development expenses | (t) Research and development expenses Research and development expenses consist primarily of personnel-related expenses and rental expenses incurred for the development of, enhancement to, and maintenance of the Company’s technology infrastructure to support its business operations. Research and development costs are expensed as incurred unless such costs qualify for capitalization as software development costs. In order to qualify for capitalization, (i) the preliminary project should be completed, (ii) management has committed to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended, and (iii) it will result in significant additional functionality in the Company’s services. The amount of costs qualifying for capitalization has been immaterial during the periods presented, and as a result, all development costs were expensed as incurred. |
Leases | (u) Leases The Company adopted ASU No. 2016-02, Leases (Topic 842 package of practical expedients The Company determines if an arrangement is a lease or contains a lease at the inception. For operating leases, the Company recognizes a right-of-use asset (“ROU asset”) and a lease liability based on the present value of the lease payments over the lease term in the consolidated balance sheets at the lease commencement date. For finance leases, assets are included in property and equipment in the consolidated balance sheets. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s leases often include options to extend and lease terms include such extended terms when the Company is reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when the Company is reasonably certain not to exercise those options. |
Government grants | (v) Government grants Government grants are provided by the relevant PRC municipal government authorities to subsidize the cost of certain research and development projects. The amount of such government grants are determined solely at the discretion of the relevant government authorities. The government grants of non-operating nature with no further conditions to be met are recorded as non-operating income in “Other income, net” when received. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as operating income when the conditions are met. For the years ended December 31, 2018, 2019 and 2020, government grants in the amounts of RMB1,886, RMB1,699 and RMB6,170 (US$946) were recognized as other income in the consolidated statements of comprehensive loss. |
Income taxes | (w) Income taxes The Company follows the liability method of accounting for income taxes in accordance with ASC 740 Accounting for Income Taxes , to account for uncertainty in income taxes |
Share-Based Compensation | (x) Share-Based Compensation The Company applies ASC 718, Compensation – Stock Compensation Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The Company, with the assistance of an independent third-party valuation firm, determined the fair value of the stock options granted to employees. The binominal option pricing model was applied in determining the estimated fair value of the options granted to employees. |
Comprehensive income (loss) | (y) Comprehensive income (loss) Comprehensive income (loss) is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income, |
Loss per share | (z) Loss per share In accordance with ASC 260, Earnings per Share |
Segment reporting | (aa) Segment reporting The Company’s Chief Executive Officer as the chief operating decision-maker reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole. In accordance with ASC 280, Segment Reporting |
Advertising expense | (bb) Advertising expense Advertising costs are expensed as incurred in accordance with ASC 720-35, Other Expense-Advertising Costs |
Value added taxes ("VAT"), business related tax and surcharges | (cc) Value added taxes (“VAT”), business related tax and surcharges The Company is subject to VAT at the rate of 17%, 16%, 13%, 6%, 5% or 3%, depending on whether the entity is a general taxpayer or small-scale taxpayer, and related surcharges on revenue generated from providing services. VAT is reported as a deduction to revenue when incurred and amounted to RMB1,466,302, RMB1,798,899 and RMB1,088,207 (US$166,775) for the years ended December 31, 2018, 2019 and 2020, respectively. 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 accrued expenses and other current liabilities on the consolidated balance sheets. The Company is also subject to certain government surcharges on the VAT payable in the PRC, which is recorded as cost of revenues. |
Commitments and contingencies | (dd) Commitments and contingencies The Company records liabilities for contingencies when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a material loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. |
Recent accounting pronouncements | (ee) Recent accounting pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC 740, Income taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The update is effective in fiscal years beginning after December 15, 2020, and interim periods therein, and early adoption is permitted. Certain amendments in this update should be applied retrospectively or modified retrospectively, all other amendments should be applied prospectively. The Company does not expect the impact of this guidance to have a material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities Investments—Equity Method and Joint Ventures Investments—Equity Method and Joint Ventures In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization | |
Schedule of Company's subsidiaries, VIEs and subsidiary of VIE | As of December 31, 2020, the Company’s significant subsidiaries, VIEs and subsidiary of the VIE are as follows: Percentage of Date of Place of ownership by the Entity incorporation incorporation Company Principal activities Direct Indirect Subsidiaries: Molecular Data (HK) Limited (“MKD HK”) 14 March, 2018 Hong Kong 100 % — Investment holding Shanghai MOHUA Information Technology Co., Ltd. (“Shanghai MOHUA”) 27 July, 2018 PRC 100 % — E-commerce platform Shanghai MOKAI Biotechnology Co., Ltd. (“Shanghai MOKAI”) 11 December, 2018 PRC 100 % — Chemical trading Shanghai MOCHUANG Biotechnology Co., Ltd. (“Shanghai MOCHUANG”) 11 December, 2018 PRC 100 % — Chemical trading Shanghai MOLIAN Biotechnology Co., Ltd (“Shanghai MOLIAN”) 17 October, 2019 PRC 100 % — Chemical trading Shandong MOBEI New Material Co., Ltd 28 February, 2020 PRC 100 % — Chemical trading MOBEI (Tianjin) Biotechnology Co., Ltd 18 January, 2018 PRC 100 % — Chemical trading VIEs: Shanghai MOLBASE Technology Co., Ltd. (“Shanghai MOLBASE”) 26 January, 2014 PRC — 100 % E-commerce platform Jiaxing MOLBASE Information Technology Co., Ltd. (“Jiaxing MOLBASE”) 21 March, 2013 PRC — 100 % Chemical trading Subsidiary of the VIE: ShanXi MOLBASE Biotechnology Co., Ltd. (“ShanXi MOLBASE”) 29 August, 2017 PRC — 100 % Chemical trading Jiangsu MOBEI Biotechnology Co., Ltd 22 June, 2020 PRC — 51 % Chemical trading *1 |
VIEs and subsidiary of the VIE | |
Organization | |
Schedule of assets and liabilities of the VIEs and subsidiary of the VIE included in the Company's consolidated balance sheets | As of December 31, 2019 2020 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 3,382 593 91 Restricted cash 4,148 277 42 Accounts receivable, net 11,774 3,626 556 Unbilled receivables 41,211 50,361 7,718 Notes receivable 107,404 1,922 295 Inventories, net 725 85 13 Prepayments and other current assets 132,152 131,838 20,205 Amounts due from related parties 95,651 279,139 42,780 Total current assets 396,447 467,842 71,700 Non-current assets: Long-term investment — 353 54 Property and equipment, net 1,049 541 83 Intangible assets, net 1,560 536 82 Right-of-use assets, net 3,219 334 51 Total non-current assets 5,828 1,765 270 Total assets 402,275 469,607 71,970 Current liabilities: Accounts payable 185,188 174,704 26,776 Accrued expenses and other liabilities 65,443 90,203 13,824 Income taxes payable 387 — — Deferred revenue 68,662 17,634 2,702 Current portion of lease liabilities 3,080 334 51 Amounts due to related parties 261,980 468,314 71,772 Total current liabilities 584,740 751,190 115,125 Non-current liabilities: Amounts due to related parties 4,320 — — Contingency liability — 341 52 Total non-current liabilities 4,320 341 52 Total liabilities 589,060 751,531 115,177 |
Schedule of results of operations and cash flows of the VIEs and subsidiary of the VIE | For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Net revenues 2,187,683 10,208,796 2,201,513 337,397 Net loss (19,451) (103,375) (95,148) (14,582) comprehensive loss attributable to non-controlling interest (41) (6) Net cash used in operating activities (48,944) (47,912) (5,493) (842) Net cash used in investing activities (99) (3,535) (1,258) (193) Net cash generated from financing activities 49,135 57,727 90 14 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of estimated useful lives of property and equipment | Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets as follows: Category Estimated useful life Office equipment 1~3 years Leasehold improvements 5 years |
Summary of estimated economic lives of intangible assets from the date of purchase | Intangible assets have estimated economic lives from the date of purchase as follows: Category Estimated economic life Purchased software 3 years |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, Net | |
Schedule of accounts receivable, net | As of December 31, 2019 2020 RMB RMB US$ Accounts receivable 40,464 27,309 4,185 Allowance for doubtful accounts (20,040) (21,346) (3,271) Total accounts receivable, net 20,424 5,963 914 |
Schedule of analysis of the allowance for doubtful accounts | As of December 31, 2019 2020 RMB RMB US$ Balance at beginning of the year 15,763 20,040 3,071 Provision 8,487 1,306 200 Reversal (4,210) — — Write-off — — — Balance at end of the year 20,040 21,346 3,271 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories, Net | |
Summary of inventories | As of December 31, 2019 2020 RMB RMB US$ Chemical products 4,351 2,821 432 Provision for obsolete stock — — — Total 4,351 2,821 432 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepayments and Other Current Assets | |
Schedule of prepayments and other current assets | As of December 31, 2019 2020 RMB RMB US$ Prepayments to suppliers, net 156,958 220,184 33,745 Capitalized listing expenses 35,261 Prepaid expenses 21,436 512 78 Other receivables, net 3,195 6,735 1,032 VAT recoverable — 1,615 248 Total 216,850 229,046 35,103 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment, Net | |
Schedule of property and equipment | As of December 31, 2019 2020 RMB RMB US$ At cost: Office equipment 4,133 4,137 634 Leasehold improvements 2,695 797 122 6,828 4,934 756 Less: accumulated depreciation (5,722) (4,209) (645) Property and equipment, net 1,106 725 111 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net | |
Schedule of intangible assets, net | As of December 31, 2019 2020 RMB RMB US$ At cost: Purchased software 4,210 4,326 663 4,210 4,326 663 Less: accumulated amortization (2,650) (3,790) (581) Intangible assets, net 1,560 536 82 |
Schedule of annual estimated amortization expenses for intangible assets | RMB US$ For the years ending December 31, 2021 456 70 2022 79 12 2023 and thereafter 1 — 536 82 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses and Other Liabilities | |
Schedule of accrued expenses and other liabilities | As of December 31, 2019 2020 RMB RMB US$ Payroll and welfare payables 18,226 33,144 5,080 VAT and other tax payables 46,465 29,257 4,484 Accrued expenses 17,499 16,171 2,478 Deposits from customers 7,005 35,109 5,381 Logistic fee payables 4,172 571 88 Payable to employee stock — 12,813 1,964 Others 9,659 5,609 858 103,026 132,674 20,333 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenues | |
Schedule of disaggregation of revenue from contracts with customers | For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Chemical trading – direct sales model 9,045,458 13,167,719 7,587,004 1,162,759 Chemical trading – market place model 4,387 26,513 107 16 Online membership service 3,421 10,650 8,740 1,339 Financial service — 917 465 71 Others — 1,516 96 16 9,053,266 13,207,315 7,596,412 1,164,201 |
Schedule of changes in unbilled receivables and contract liabilities | As of December 31, 2019 2020 RMB RMB US$ Unbilled receivables 62,529 51,825 7,943 Deferred revenue 107,181 81,636 12,511 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of loss before income tax | For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Non-PRC (124,022) (49,214) (192,799) (29,548) PRC (130,617) (143,869) (132,781) (20,350) (254,639) (193,083) (325,580) (49,898) |
Schedule of income tax expenses | For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Current — 465 2,458 377 Deferred — — — — Income tax expenses — 465 2,458 377 |
Schedule of reconciliations of the income tax expenses | For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Loss before income tax expense (254,639) (193,083) (325,580) (49,898) PRC statutory tax rate 25 % 25 % 25 % 25 % Income tax benefits at PRC statutory tax rate of 25% (63,660) (48,271) (81,395) (12,475) Additional deduction of research and development expenses — (1,202) (4,941) (757) Effect of different tax rates in different jurisdictions 31,006 12,303 48,200 7,388 Preferential rate 1,137 — — — Statutory income/(expense) (1,547) (3,569) 3,546 543 Non-deductible expenses 1,138 4,595 156 24 Current and deferred tax rate differences (1,313) — — — Change in valuation allowance 33,239 36,609 36,892 5,654 Income tax expenses — 465 2,458 377 |
Schedule of components of the Company's deferred tax assets | As of December 31, 2019 2020 RMB RMB US$ Non-current deferred tax assets Allowance for doubtful debt 9,442 7,682 1,177 Impairment of a long-term investment — — — Advertising expense 41 183 28 Additional social insurance 1,086 1,086 166 Accrued expense and other current liability 1,907 772 118 Tax losses 38,040 75,846 11,625 Less: valuation allowance (50,516) (85,569) (13,114) Deferred tax assets, net — — — |
Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits | For the years ended December 31, 2019 2020 RMB RMB US$ Balance at the beginning of year — 3,006 461 Additions based on tax positions related to the current year 2,252 4,896 750 Additions related to prior year tax position 1,092 — — Decreases related to prior year tax position (338) (2,252) (345) Balance at the end of year 3,006 5,650 866 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Schedule of related party | Name Relationship with the Company Chang Dongliang Founder and principal shareholder of the parent company MOLBASE Inc. Parent company MOLBASE (HK) Limited Entity under common control of the parent company MOLBASE (Shanghai) Biotechnology Co., Ltd. Entity under common control of the parent company Shanghai MOYU Biotechnology Co., Ltd. Entity under common control of the parent company MOXIN Commercial Factoring (Shenzhen) Co., Ltd. Entity under common control of the parent company Molbase Logistic Management Co., Ltd. Entity under common control of the parent company |
Schedule of significant related party transactions | The Company had the following significant related party transactions: For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Services provided MOLBASE (Shanghai) Biotechnology Co., Ltd. — 9,968 — — Henan Zhongxing MOLBASE Data Service Co., Ltd — — 347 53 Purchase of goods MOLBASE (Shanghai) Biotechnology Co., Ltd. — 30,891 4,012 615 Purchase of services Molbase Logistic Management Co., Ltd. — 999 726 111 Repayment of consideration MOLBASE (Shanghai) Biotechnology Co., Ltd. — 104,190 — — Guarantee provided on loans for (1) MOLBASE (Shanghai) Biotechnology Co., Ltd. — 50,505 50,571 7,750 Loans from MOLBASE (HK) Limited 20,875 74,607 18,832 2,886 MOLBASE Inc. — 14,274 135 21 MOLBASE (Shanghai) Biotechnology Co., Ltd. — — 3,940 604 Loans to Molbase Logistic Management Co., Ltd. — 794 1,173 180 (1) In 2019, the Company provided guarantees of RMB50,505 (US$7,255) for MOLBASE (Shanghai) Biotechnology Co., Ltd.’s bank borrowings, which were all due in 2020. In 2020, the Company provided guarantees of RMB50,571 (US$7,750) for MOLBASE (Shanghai) Biotechnology Co., Ltd.’s bank borrowings, and all these borrowings will expire in 2021. The Company had the following related party balances as of December 31, 2019 and 2020: As of December 31, 2019 2020 RMB RMB US$ Amounts due from related parties: Current: Molbase Logistic Management Co., Ltd. 794 1,126 173 MOXIN Commercial Factoring (Shenzhen) Co., Ltd. 20 — — Shanghai MOYU Biotechnology Co., Ltd. 7 6 1 Chang Dongliang 7 12 2 828 1,144 175 Amounts due to related parties: Current: MOLBASE (HK) Limited (1) 77,520 87,782 13,453 MOLBASE (Shanghai) Biotechnology Co., Ltd. (3) 60,533 4,495 689 MOLBASE Inc. (2) 5,905 17,076 2,617 Chang Dongliang — 1,833 281 143,958 111,186 17,040 Non-current: MOLBASE (HK) Limited (1) 18,528 — — MOLBASE Inc. (2) 10,605 — — MOLBASE (Shanghai) Biotechnology Co., Ltd. 2,487 — — Chang Dongliang 1,833 — — 33,453 — — (1) As of December 31, 2019 and 2020, amounts due to MOLBASE (HK) Limited represented the cash funding support to the Company for its operations. These balances were unsecured and interest-free. As of December 31, 2020, the due dates for the loans of RMB18,528 (US$2,840) were December 31, 2021, while other balances have no fixed terms of repayment. (2) As of December 31, 2019 and 2020, amounts due to MOLBASE Inc. represented the cash funding support to the Company for its operations. These balances were unsecured and interest-free. As of December 31, 2020, the due dates for the loans of RMB12,823 (US$1,965) were December 31, 2021, while other balances have no fixed terms of repayment. (3) As of December 31, 2019 and 2020, amounts due to MOLBASE (Shanghai) Biotechnology Co., Ltd. represented funds provided by Shanghai Biotech to the Company for its operations. Prior to the Reorganization, Shanghai Biotech obtained various short-term and long-term loans from banks to develop the chemical e-commerce business. Upon the Reorganization, the amounts due to Shanghai Biotech will be due in 18 months subsequent to the Reorganization. On June 28, 2019, the Company signed a supplemental agreement with Shanghai Biotech to extend the payment due date from 18 months to 24 months subsequent to the Reorganization. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loss Per Share | |
Schedule of basic and diluted loss per share | For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Numerator: Net loss attributable to ordinary shareholders (254,639) (193,548) (327,997) (50,268) Denominator: Weighted-average number of ordinary shares outstanding — basic 310,627,024 310,627,024 348,160,637 348,160,637 Adjustments for dilutive options — — 27,892,119 27,892,119 Weighted-average number of ordinary shares outstanding —diluted 310,627,024 310,627,024 376,052,756 376,052,756 Loss per share — basic and diluted Basic net loss per share attributable to ordinary shareholders (RMB) (0.82) (0.62) (0.94) (0.14) Diluted net loss per share attributable to ordinary shareholders (RMB) (0.82) (0.62) (0.87) (0.13) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-Based Compensation | |
Schedule of equity award activity | - Weighted- Weighted- average Weighted- average remaining Aggregate Number of average grant- date contractual intrinsic options exercise price fair value term value US$ US$ Years US$ Outstanding, December 31, 2019 39,512,055 0.42 0.75 6.2 172,436 Granted 2,300,000 0.61 0.90 3.4 1,010 Exercised (6,898,287) 0.06 0.91 3.48 4,866,860 Forfeited (3,126,054) 0.80 0.65 8.0 126 Outstanding, December 31, 2020 31,787,714 0.45 0.95 5.2 12,475 Vested and expected to vest at December 31, 2020 31,787,714 0.45 0.95 5.2 12,475 Exercisable at December 31, 2020 25,674,873 0.36 0.77 4.6 12,233 |
Schedule of assumptions used to estimate the fair value | The assumptions used to estimate the fair value of the share options granted to employees are as follows: 2018 2019 Risk-free interest rate 2.93%~3.06 % 1.95%~1.96 % Expected volatility 55.46%~58.33 % 56.21%~56.25 % Suboptimal early exercise multiple 2.2 and 2.8 2.8 Expected post-vesting forfeiture rate 4.9 % 5.0 % Fair value per ordinary share US$ 0.97 US$ 1.83 |
Schedule of share-based compensation expense | For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Sales and marketing expenses 7,942 6,860 14,856 2,277 General and administrative expenses 109,956 28,773 120,699 18,498 Research and development expenses 6,124 3,359 4,246 651 Total 124,022 38,992 139,801 21,426 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of future lease payments under operating leases | Future lease payments under operating leases as of December 31, 2020 are as follows: Operating Leases RMB US$ 2021 1,650 253 2022 1,458 223 2023 1,458 223 Total undiscounted cash flows 4,567 700 Less imputed interest 372 57 Total lease liabilities balance 4,195 643 |
Supplemental cash flow information related to operating leases | For the year ended December 31, 2019 2020 RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Cash payments for operating leases 1,620 2,496 383 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Schedule of commitments to purchase certain chemical products | Commitments As of December 31, 2020, the Company has the following commitments to purchase certain chemical products: RMB US$ 2021 16,652 2,552 2022 and thereafter 16,652 2,552 |
Schedule of of compensation for employee resignation. | For the years ended December 31, 2019 2020 RMB RMB US$ Compensation for employee resignation — 341 52 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) - Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |
Schedule of Condensed balance sheets of Parent Company | As of December 31, 2019 2020 RMB RMB US$ ASSETS Current Assets Cash and cash equivalents 446 2,818 432 Prepayments and other current assets 56,293 396,995 60,842 Total current assets 56,739 399,813 61,274 Deferred assets — 13,725 2,103 Total Assets 56,739 413,538 63,377 LIABILITIES AND SHAREHOLDERS’ DEFICIT Current Liabilities Accrued expenses and other liabilities 17,499 38,723 5,935 Amounts due to related parties 36,126 57,310 8,783 Total current liabilities 53,625 96,033 14,718 Non-current Liabilities Amounts due to related parties 12,822 10,606 1,625 Loss in excess of investments in subsidiaries, the VIEs and subsidiary of the VIE 206,789 334,826 51,315 Total non-current liabilities 219,611 345,432 52,940 Total Liabilities 273,236 441,465 67,658 Shareholders’ deficit Ordinary shares (par value of US$0.00005 per share; 1,000,000,000 shares authorized; 310,627,024 and 389,819,415 shares issued outstanding 98 114 17 Additional paid-in capital 537,618 1,075,064 164,761 Accumulated other comprehensive loss (316) (21,192) (3,248) Accumulated deficit (753,897) (1,081,914) (165,811) Total shareholders’ deficit (216,497) (27,928) (4,281) TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 56,739 413,537 63,377 |
Schedule of Condensed statements of comprehensive loss of Parent Company | For the years ended December 31, 2018 2019 2020 RMB RMB RMB US$ Sales and marketing expenses (7,942) (6,860) (23,557) (3,610) General and administrative expenses (109,956) (38,428) (164,752) (25,250) Research and development expenses (6,124) (3,359) (8,537) (1,308) Total operating expenses (124,022) (48,647) (196,846) (30,168) Operating loss (124,022) (48,647) (196,846) (30,168) Other income — — 3,263 500 Foreign exchange income — 262 3 — Share of losses from subsidiaries, the VIEs and subsidiary of the VIE (130,617) (145,163) (127,691) (19,569) Loss before income tax (254,639) (193,548) (321,271) (49,237) Income tax expenses — — 6,726 1,031 Net loss (254,639) (193,548) (327,997) (50,268) Other comprehensive loss, net of tax of nil Foreign currency translation difference, net of tax of nil — 316 20,876 3,199 Comprehensive loss (254,639) (193,232) (307,121) (47,069) |
Schedule of Condensed statements of cash flows of Parent Company | For the years ended December 31 2018 2019 2020 RMB RMB RMB US$ Net cash used in operating activities — (9,709) (506,681) (77,651) Net cash generated from investing activities — — — — Net cash generated from financing activities — 10,155 509,053 78,016 Net increase in cash, cash equivalents and restricted cash — 446 2,372 365 Cash, cash equivalents and restricted cash at beginning of year — — 446 68 Cash, cash equivalents and restricted cash at end of year — 446 2,818 433 |
Organization - VIEs and subsidi
Organization - VIEs and subsidiary of VIE (Details) | Jun. 13, 2020CNY (¥) | Dec. 31, 2020USD ($) |
Shanghai MOLBASE | ||
Entity Information [Line Items] | ||
Percentage of ownership in VIE | 100.00% | |
Jiaxing MOLBASE | ||
Entity Information [Line Items] | ||
Percentage of ownership in VIE | 100.00% | |
ShaanXi MOLBASE | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary of VIE | $ 100 | |
Jiangsu MOBEI | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary of VIE | $ 51 | |
MKD HK | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary | 100.00% | |
Shanghai MOHUA | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary | 100.00% | |
Term of exclusive technical support and service agreements | 10 years | |
Shanghai MOKAI | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary | 100.00% | |
Shanghai MOCHUANG | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary | 100.00% | |
Shanghai MOLIAN | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary | 100.00% | |
Shandong MOBEI | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary | 100.00% | |
MOBEI Tianjin | ||
Entity Information [Line Items] | ||
Percentage of ownership in subsidiary | 100.00% | 100.00% |
Transfer consideration | ¥ | ¥ 0 |
Organization - Consolidated bal
Organization - Consolidated balance sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | ||||
Cash and cash equivalents | ¥ 11,311 | $ 1,733 | ¥ 15,156 | ¥ 6,477 |
Restricted cash | 277 | 42 | 42,518 | |
Accounts receivable, net | 5,963 | 914 | 20,424 | |
Unbilled receivables | 51,825 | 7,943 | 62,529 | |
Notes receivable | 24,761 | 3,795 | 124,176 | |
Inventories, net | 2,821 | 432 | 4,351 | |
Prepayments and other current assets | 229,046 | 35,103 | 216,850 | |
Amounts due from related parties | 1,144 | 175 | 828 | |
Total current assets | 663,186 | 101,637 | 486,832 | |
Non-current assets: | ||||
Long-term investment | 353 | 54 | ||
Property and equipment, net | 725 | 111 | 1,106 | |
Intangible assets, net | 536 | 82 | 1,560 | |
Right-of-use assets, net | 4,195 | 643 | 3,219 | |
Total non-current assets | 21,635 | 3,315 | 5,885 | |
Total Assets | 684,821 | 104,952 | 492,717 | |
Current liabilities: | ||||
Short-term borrowings | 33,749 | 5,172 | 13,749 | |
Accounts payable | 315,729 | 48,388 | 304,380 | |
Accrued expenses and other liabilities | 132,674 | 20,333 | 103,026 | |
Income taxes payable | 387 | |||
Deferred revenue | 81,636 | 12,511 | 107,181 | |
Current portion of lease liabilities | 1,536 | 235 | 3,080 | |
Amounts due to related parties | 111,186 | 17,040 | 143,958 | |
Total current liabilities | 692,606 | 106,146 | 675,761 | |
Non-current liabilities: | ||||
Amounts due to related parties | 33,453 | |||
Contingency liability | 341 | 52 | ||
Total non-current liabilities | 20,052 | 3,073 | 33,453 | |
Total Liabilities | 712,658 | 109,219 | 709,214 | |
VIEs and subsidiary of the VIE | ||||
Current assets: | ||||
Cash and cash equivalents | 593 | 91 | 3,382 | |
Restricted cash | 277 | 42 | 4,148 | |
Accounts receivable, net | 3,626 | 556 | 11,774 | |
Unbilled receivables | 50,361 | 7,718 | 41,211 | |
Notes receivable | 1,922 | 295 | 107,404 | |
Inventories, net | 85 | 13 | 725 | |
Prepayments and other current assets | 131,838 | 20,205 | 132,152 | |
Amounts due from related parties | 279,139 | 42,780 | 95,651 | |
Total current assets | 467,842 | 71,700 | 396,447 | |
Non-current assets: | ||||
Long-term investment | 353 | 54 | ||
Property and equipment, net | 541 | 83 | 1,049 | |
Intangible assets, net | 536 | 82 | 1,560 | |
Right-of-use assets, net | 334 | 51 | 3,219 | |
Total non-current assets | 1,765 | 270 | 5,828 | |
Total Assets | 469,607 | 71,970 | 402,275 | |
Current liabilities: | ||||
Accounts payable | 174,704 | 26,776 | 185,188 | |
Accrued expenses and other liabilities | 90,203 | 13,824 | 65,443 | |
Income taxes payable | 387 | |||
Deferred revenue | 17,634 | 2,702 | 68,662 | |
Current portion of lease liabilities | 334 | 51 | 3,080 | |
Amounts due to related parties | 468,314 | 71,772 | 261,980 | |
Total current liabilities | 751,190 | 115,125 | 584,740 | |
Non-current liabilities: | ||||
Amounts due to related parties | 4,320 | |||
Contingency liability | 341 | 52 | ||
Total non-current liabilities | 341 | 52 | 4,320 | |
Total Liabilities | ¥ 751,531 | $ 115,177 | ¥ 589,060 |
Organization - Operation and ca
Organization - Operation and cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Net revenues | ¥ 7,596,412 | $ 1,164,201 | ¥ 13,207,315 | ¥ 9,053,266 |
Net loss | (327,997) | (50,268) | (193,548) | (254,639) |
Comprehensive loss attributable to non-controlling interest | (41) | (6) | 0 | 0 |
Net cash used in operating activities | (234,048) | (35,870) | (95,821) | (134,636) |
Net cash used in investing activities | (320,308) | (49,089) | (1,820) | (2,242) |
Net cash generated from financing activities | 529,143 | 81,095 | 149,399 | 37,333 |
VIEs and subsidiary of the VIE | ||||
Variable Interest Entity [Line Items] | ||||
Net revenues | 2,201,513 | 337,397 | 10,208,796 | 2,187,683 |
Net loss | (95,148) | (14,582) | (103,375) | (19,451) |
Comprehensive loss attributable to non-controlling interest | (41) | (6) | ||
Net cash used in operating activities | (5,493) | (842) | (47,912) | (48,944) |
Net cash used in investing activities | (1,258) | (193) | (3,535) | (99) |
Net cash generated from financing activities | ¥ 90 | $ 14 | ¥ 57,727 | ¥ 49,135 |
Organization (Details)
Organization (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 30, 2019USD ($)$ / sharesshares | Jan. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
IPO | |||||
Variable Interest Entity [Line Items] | |||||
Total offering size | $ 61,870 | ||||
IPO | ADS | |||||
Variable Interest Entity [Line Items] | |||||
Number of common shares issued per ADS | shares | 11,500,000 | ||||
Share price | $ / shares | $ 5.38 | ||||
Total offering size | $ 61,870 | ||||
VIEs and subsidiary of the VIE | |||||
Variable Interest Entity [Line Items] | |||||
Pledge or collateralization of the assets | $ 0 | ¥ 4,148 | |||
Net liabilities | ¥ 281,925 | $ 43,207 | ¥ 186,784 |
Liquidity and Going Concern (De
Liquidity and Going Concern (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017CNY (¥) | |
Liquidity and Going Concern | |||||||
Accumulated losses from operations | ¥ 328,038 | $ 50,274 | ¥ 193,548 | ¥ 254,639 | |||
Net cash used in operating activities | 234,048 | $ 35,870 | 95,821 | 134,636 | |||
Cash, cash equivalents and restricted cash | ¥ 11,588 | ¥ 57,674 | ¥ 6,477 | $ 1,775 | $ 8,839 | ¥ 106,022 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - (Details) ¥ in Thousands, $ in Thousands | Dec. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) |
Net loss | ¥ 327,997 | $ 50,268 | ¥ 193,548 | ¥ 254,639 | ||||
Cash flows from operating activities | 234,048 | $ 35,870 | ¥ 95,821 | ¥ 134,636 | ||||
Liabilities exceeded its current assets | ¥ 29,420,000 | $ 4,509 | ||||||
Threshold prior written notice for redemption | 14 days | 14 days | ||||||
IPO | ||||||||
Total offering size | $ 61,870 | |||||||
ADS | IPO | ||||||||
Total offering size | $ 61,870 | |||||||
L. R. Capital Property Investment Limited | ||||||||
Note fair value | $ 58,400 | |||||||
Strategic Global Investments | ||||||||
Note fair value | $ 51,500 | $ 51,500 | ||||||
Interest rate | 6.25% | |||||||
Threshold prior written notice for redemption | 14 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Convenience translation (Details) | Dec. 31, 2020$ / ¥ |
Convenience translation | |
Translation rate (CNY/USD) | 6.5250 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated useful life of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum | Office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 1 year |
Maximum | Office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Estimated economic life of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated economic life | 3 years |
Purchased software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated economic life | 3 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Impairment of long-lived assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment of long-lived assets | |||
Impairment loss | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Revenue recognition (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Revenue recognition | ||||
Maximum potential undiscounted future payments which the entity would be required to make under guarantee obligation | ¥ 49,278 | $ 7,552 | ¥ 39,773 | ¥ 26,433 |
Performance obligation | ¥ 0 | ¥ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Shipping and other handling costs (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Sales and marketing expenses | ¥ 67,018 | $ 10,271 | ¥ 108,858 | ¥ 103,293 |
Shipping and other handling costs | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales and marketing expenses | ¥ 3,460 | $ 530 | ¥ 13,945 | ¥ 12,565 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Package of practical expedients | true |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Government grants (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Other income | ||||
Government grants | ¥ 6,170 | $ 946 | ¥ 1,699 | ¥ 1,886 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Segment reporting, advertising expense and VAT (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)segment | Dec. 31, 2020USD ($)segment | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Segment reporting | ||||
Number of reportable segment | 1 | 1 | ||
Advertising expense | ||||
Advertising costs | ¥ 963 | $ 148 | ¥ 10,693 | ¥ 25,324 |
Value added taxes ("VAT"), business related tax and surcharges | ||||
VAT rate one | 17.00% | 17.00% | ||
VAT rate two | 16.00% | 16.00% | ||
VAT rate three | 13.00% | 13.00% | ||
VAT rate four | 6.00% | 6.00% | ||
VAT rate five | 5.00% | 5.00% | ||
VAT rate six | 3.00% | 3.00% | ||
VAT amount | ¥ 1,088,207 | $ 166,775 | ¥ 1,798,899 | ¥ 1,466,302 |
Concentration of Risks (Details
Concentration of Risks (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Exchange rate concentration | Foreign currency | |||
Concentration Risk [Line Items] | |||
Appreciation(Depreciation) of the RMB against US$ (as a percent) | (6.30%) | 1.60% | 5.00% |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Accounts Receivable, Net | |||||
Accounts receivable | ¥ 27,309 | $ 4,185 | ¥ 40,464 | ||
Allowance for doubtful accounts | (21,346) | (3,271) | (20,040) | $ (3,071) | ¥ (15,763) |
Total accounts receivable, net | ¥ 5,963 | $ 914 | ¥ 20,424 |
Accounts Receivable, Net - Allo
Accounts Receivable, Net - Allowance for doubtful accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Accounts Receivable, Net | |||
Balance at beginning of the year | ¥ 20,040 | $ 3,071 | ¥ 15,763 |
Provision | (1,306) | 200 | 8,487 |
Reversal | (4,210) | ||
Balance at end of the year | ¥ 21,346 | $ 3,271 | ¥ 20,040 |
Short-term investments - (Detai
Short-term investments - (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2020 | |
Threshold prior written notice for redemption | 14 days | |
Strategic Global Investments | ||
Note purchased | $ 51,500 | |
Note fair value | $ 51,500 | $ 51,500 |
Interest rate | 6.25% | |
Threshold prior written notice for redemption | 14 days |
Inventories, Net (Details)
Inventories, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Chemical products | ¥ 2,821 | $ 432 | ¥ 4,351 |
Total | 2,821 | $ 432 | 4,351 |
Pledged | |||
Total | ¥ 0 | ¥ 0 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | |
Prepayments and Other Current Assets | ||||
Prepayments to suppliers, net | ¥ 220,184 | ¥ 156,958 | $ 33,745 | |
Capitalized listing expenses | 35,261 | |||
Prepaid expenses | 512 | 21,436 | 78 | |
Other receivables, net | 6,735 | 3,195 | 1,032 | |
VAT recoverable | 1,615 | 248 | ||
Total | 229,046 | 216,850 | $ 35,103 | |
Allowance of doubtful accounts for prepayments to suppliers and other receivables | ¥ 44,745 | $ 6,857 | ¥ 41,569 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property and Equipment, Net | |||
Property and equipment, gross | ¥ 4,934 | $ 756 | ¥ 6,828 |
Less: accumulated depreciation | (4,209) | (645) | (5,722) |
Property and equipment, net | 725 | 111 | 1,106 |
Office equipment | |||
Property and Equipment, Net | |||
Property and equipment, gross | 4,137 | 634 | 4,133 |
Leasehold Improvements | |||
Property and Equipment, Net | |||
Property and equipment, gross | ¥ 797 | $ 122 | ¥ 2,695 |
Property and Equipment, Net - D
Property and Equipment, Net - Depreciation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Property and Equipment, Net | ||||
Depreciation | ¥ 584 | $ 90 | ¥ 1,509 | ¥ 1,373 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | ¥ 4,326 | $ 663 | ¥ 4,210 |
Less: accumulated amortization | (3,790) | (581) | (2,650) |
Intangible assets, net | 536 | 82 | 1,560 |
Purchased software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | ¥ 4,326 | $ 663 | ¥ 4,210 |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Intangible Assets, Net | |||||
Amortization expenses | ¥ 1,140 | $ 175 | ¥ 1,541 | ¥ 1,065 | |
Useful life | 3 years | 3 years | |||
Annual estimated amortization expenses for the intangible assets for each of the next three years | |||||
2021 | ¥ 456 | $ 70 | |||
2022 | 79 | 12 | |||
2023 and thereafter | 1 | ||||
Intangible assets, net | ¥ 536 | ¥ 1,560 | $ 82 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Borrowings | ||
Weighted average interest rate | 3.50% | 10.00% |
Collateral amount of short term borrowings by other receivables | ¥ 0 | ¥ 0 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accrued Expenses and Other Liabilities | |||
Payroll and welfare payables | ¥ 33,144 | $ 5,080 | ¥ 18,226 |
VAT and other tax payables | 29,257 | 4,484 | 46,465 |
Accrued expenses | 16,171 | 2,478 | 17,499 |
Deposits from customers | 35,109 | 5,381 | 7,005 |
Logistic fee payables | 571 | 88 | 4,172 |
Payable to employee stock | 12,813 | 1,964 | |
Others | 5,609 | 858 | 9,659 |
Total | ¥ 132,674 | $ 20,333 | ¥ 103,026 |
Revenues - Disaggregation of re
Revenues - Disaggregation of revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Disaggregation of Revenue [Line Items] | |||||
Net revenues | ¥ 7,596,412 | $ 1,164,201 | ¥ 13,207,315 | ¥ 9,053,266 | |
Revenue recognized that was included in deferred revenue | 25,545 | 153,467 | 44,843 | ||
Unbilled receivables | 51,825 | 62,529 | $ 7,943 | ||
Deferred revenue | 81,636 | 107,181 | $ 12,511 | ||
Chemical trading | Direct sales model | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 7,587,004 | 1,162,759 | 13,167,719 | 9,045,458 | |
Chemical trading | Market place model | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 107 | 16 | 26,513 | 4,387 | |
Online membership service | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 8,740 | 1,339 | 10,650 | ¥ 3,421 | |
Financial service | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | 465 | 71 | 917 | ||
Others | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenues | ¥ 96 | $ 16 | ¥ 1,516 |
Income Taxes - Loss before inco
Income Taxes - Loss before income tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Loss before income tax | ¥ (325,580) | $ (49,898) | ¥ (193,083) | ¥ (254,639) |
PRC | ||||
Loss before income tax | (132,781) | (20,350) | (143,869) | (130,617) |
Non-PRC | ||||
Loss before income tax | ¥ (192,799) | $ (29,548) | ¥ (49,214) | ¥ (124,022) |
Income Taxes - Current and defe
Income Taxes - Current and deferred portions of income tax expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Taxes | ||||
Current | ¥ 2,458 | $ 377 | ¥ 465 | |
Deferred | 5,116 | 784 | ||
Income tax expenses | ¥ 2,458 | $ 377 | ¥ 465 | ¥ 0 |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of the income tax expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Taxes | ||||
Loss before income tax | ¥ (325,580) | $ (49,898) | ¥ (193,083) | ¥ (254,639) |
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax benefits at PRC statutory tax rate of 25% | ¥ (81,395) | $ (12,475) | ¥ (48,271) | ¥ (63,660) |
Additional deduction of research and development expenses | (4,941) | (757) | (1,202) | |
Effect of different tax rates in different jurisdictions | 48,200 | 7,388 | 12,303 | 31,006 |
Preferential rate | 1,137 | |||
Statutory income/(expense) | 3,546 | 543 | (3,569) | (1,547) |
Non-deductible expenses | 156 | 24 | 4,595 | 1,138 |
Current and deferred tax rate differences | (1,313) | |||
Change in valuation allowance | 36,892 | 5,654 | 36,609 | 33,239 |
Income tax expenses | ¥ 2,458 | $ 377 | ¥ 465 | ¥ 0 |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Non-current deferred tax assets | |||
Allowance for doubtful debt | ¥ 7,682 | $ 1,177 | ¥ 9,442 |
Advertising expense | 183 | 28 | 41 |
Additional social insurance | 1,086 | 166 | 1,086 |
Accrued expense and other current liability | 772 | 118 | 1,907 |
Tax losses | 75,846 | 11,625 | 38,040 |
Less: valuation allowance | ¥ (85,569) | $ (13,114) | ¥ (50,516) |
Income Taxes (Details)
Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020USD ($) | |
Statutory rate | 25.00% | 25.00% | 25.00% | ||
Withholding tax rate | 10.00% | ||||
Taxable loss carryforward | ¥ 303,384 | $ 46,495 | |||
Undistributed earnings | 0 | ||||
Withholding tax accrued on undistributed earnings | ¥ 0 | ||||
MKD HK | |||||
Statutory rate | 16.50% | ||||
Shanghai MOLBASE | |||||
Percentage of enterprise income tax. | 15.00% | 15.00% | 15.00% | ||
Preferential tax rate effective period (in years) | 3 years | ||||
ShaanXi MOLBASE | |||||
Eligible for reduction of taxable income | 50.00% | 50.00% | |||
Eligible for reduction of EIT | 20.00% | 20.00% | |||
Shanghai MOUHUA | |||||
Eligible for reduction of taxable income | 50.00% | 50.00% | |||
Eligible for reduction of EIT | 20.00% | 20.00% |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Income Taxes | |||||
Unrecognized tax benefits that if recognized, would affect annual effective tax rate | ¥ 2,645 | ¥ 2,965 | $ 405 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||
Balance at the beginning of year | 3,006 | $ 461 | |||
Additions based on tax positions related to the current year | 4,896 | 750 | 2,252 | ||
Additions related to prior year tax position | 1,092 | ||||
Decreases related to prior year tax position | (2,252) | (345) | (338) | ||
Balance at the end of year | 5,650 | $ 866 | 3,006 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||||
Interest expense was accrued in relation to the unrecognized tax benefits | ¥ 0 | 0 | ¥ 0 | ||
Accumulated interest expenses recorded in unrecognized tax benefits | ¥ 0 | ¥ 0 |
Related Party Transactions - Re
Related Party Transactions - Related party transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018CNY (¥) | |
Related Party Transaction [Line Items] | ||||||
Amounts due to related parties | ¥ 111,186 | ¥ 143,958 | $ 17,040 | |||
MOLBASE (Shanghai) Biotechnology Co., Ltd. | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided | 9,968 | |||||
Purchase of goods or services | 4,012 | $ 615 | 30,891 | |||
Repayment of consideration | 104,190 | |||||
Guarantee provided on loans for | 50,571 | 7,750 | 50,505 | $ 7,255 | ||
Loans from | 3,940 | 604 | ||||
Amounts due to related parties | 4,495 | 60,533 | 689 | |||
Henan Zhongxing MOLBASE Data Service Co., Ltd | ||||||
Related Party Transaction [Line Items] | ||||||
Services provided | 347 | 53 | ||||
ShaanXi Molbase Logistic Management Co., Ltd | ||||||
Related Party Transaction [Line Items] | ||||||
Purchase of goods or services | 726 | $ 111 | 999 | |||
Amounts due to related parties | 1,173 | 794 | 180 | |||
MOLBASE (HK) Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Loans from | 18,832 | 74,607 | 2,886 | ¥ 20,875 | ||
Amounts due to related parties | 87,782 | 77,520 | 13,453 | |||
MOLBASE Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Loans from | 135 | 14,274 | 21 | |||
Amounts due to related parties | ¥ 17,076 | ¥ 5,905 | $ 2,617 |
Related Party Transactions - _2
Related Party Transactions - Related party balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Related Party Transaction [Line Items] | |||
Accounts due from related parties: Current | ¥ 1,144 | $ 175 | ¥ 828 |
Accounts due to related parties: Current | 111,186 | 17,040 | 143,958 |
Non-current amounts due to related parties | 33,453 | ||
ShaanXi Molbase Logistic Management Co., Ltd | |||
Related Party Transaction [Line Items] | |||
Accounts due from related parties: Current | 1,126 | 173 | 794 |
Accounts due to related parties: Current | 1,173 | 180 | 794 |
MOXIN Commercial Factoring (Shenzhen) Co., Ltd | |||
Related Party Transaction [Line Items] | |||
Accounts due from related parties: Current | 20 | ||
Shanghai MOYU Biotechnology Co., Ltd | |||
Related Party Transaction [Line Items] | |||
Accounts due from related parties: Current | 6 | 1 | 7 |
Chang Dongliang | |||
Related Party Transaction [Line Items] | |||
Accounts due from related parties: Current | 12 | 2 | 7 |
Accounts due to related parties: Current | 1,833 | 281 | |
Non-current amounts due to related parties | 1,833 | ||
MOLBASE Inc | |||
Related Party Transaction [Line Items] | |||
Accounts due to related parties: Current | 17,076 | 2,617 | 5,905 |
Non-current amounts due to related parties | 10,605 | ||
Amount due to related party's due on December 31, 2021 | 12,823 | 1,965 | |
MOLBASE (HK) Limited | |||
Related Party Transaction [Line Items] | |||
Accounts due to related parties: Current | 87,782 | 13,453 | 77,520 |
Non-current amounts due to related parties | 18,528 | ||
Amount due to related party's due on December 31, 2021 | 18,528 | 2,840 | |
MOLBASE (Shanghai) Biotechnology Co., Ltd. | |||
Related Party Transaction [Line Items] | |||
Accounts due to related parties: Current | ¥ 4,495 | $ 689 | 60,533 |
Non-current amounts due to related parties | ¥ 2,487 |
Related Party Transactions (Det
Related Party Transactions (Details) | 6 Months Ended | 18 Months Ended |
Dec. 31, 2019 | Jun. 27, 2019 | |
MOLBASE (Shanghai) Biotechnology Co., Ltd. | ||
Related Party Transaction [Line Items] | ||
Repayment period subsequent to reorganization | 24 months | 18 months |
Share Capital (Details)
Share Capital (Details) ¥ in Thousands | Feb. 28, 2018$ / sharesshares | Jun. 30, 2020shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥) |
Ordinary shares authorized | 1,000,000,000 | 1,000,000,000 | |||
Dividends on ordinary shares declared | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | ||
MOLBASE Inc. | |||||
Stock issued during the period | 310,627,024 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00005 | ||||
Ordinary shares | |||||
Stock issued during the period | 35,005,761 | 35,005,761 | |||
Class A ordinary shares | |||||
Ordinary shares issued | 334,999,682 | 255,807,290 | |||
Ordinary shares outstanding | 304,488,317 | 255,807,290 | |||
Class B ordinary shares | |||||
Ordinary shares issued | 54,819,733 | 54,819,733 | |||
Ordinary shares outstanding | 54,819,733 | 54,819,733 |
Loss Per Share (Details)
Loss Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss attributable to ordinary shareholders | ¥ (327,997) | $ (50,268) | ¥ (193,548) | ¥ (254,639) |
Denominator: | ||||
Weighted-average number of ordinary shares outstanding - basic | 348,160,637 | 348,160,637 | 310,627,024 | 310,627,024 |
Adjustments for dilutive options | 27,892,119 | 27,892,119 | ||
Weighted-average number of ordinary shares outstanding - diluted | 376,052,756 | 376,052,756 | 310,627,024 | 310,627,024 |
Loss per share - basic and diluted | ||||
Basic net loss per share attributable to ordinary shareholders (RMB) | (per share) | ¥ (0.94) | $ (0.14) | ¥ (0.62) | ¥ (0.82) |
Diluted net loss per share attributable to ordinary shareholders (RMB) | (per share) | ¥ (0.87) | $ (0.13) | ¥ (0.62) | ¥ (0.82) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - shares | Nov. 27, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 2,300,000 | |||
2018 Share Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved to be issued | 48,676,179 | |||
Number of shares granted | 41,108,821 | |||
Granted | 2,300,000 | |||
2018 Share Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 7 years | |||
Vesting period | 1 year | |||
2018 Share Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 48,676,179 | |||
Expiration period | 10 years | |||
Vesting period | 4 years | |||
2019 Share Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 10,353,810 |
Share-Based Compensation - Opti
Share-Based Compensation - Option activity (Details) $ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019USD ($)$ / sharesshares | |
Number of options | |||
Outstanding at the beginning of year | shares | 39,512,055 | 39,512,055 | |
Granted | shares | 2,300,000 | 2,300,000 | |
Exercised | shares | (6,898,287) | (6,898,287) | |
Forfeited | shares | (3,126,054) | (3,126,054) | |
Outstanding at the end of year | shares | 31,787,714 | 31,787,714 | 39,512,055 |
Vested and expected to vest at December 31, 2020 | shares | 31,787,714 | ||
Exercisable at December 31, 2020 | shares | 25,674,873 | ||
Weighted- average exercise price | |||
Outstanding at the beginning of year | $ 0.42 | ||
Granted | 0.61 | ||
Exercised | 0.06 | $ 0 | |
Forfeited | 0.80 | ||
Outstanding at the end of year | 0.45 | 0.42 | |
Vested and expected to vest at December 31, 2020 | 0.45 | ||
Exercisable at December 31, 2020 | 0.36 | ||
Weighted- average grant-date fair value | |||
Outstanding at the beginning of year | 0.75 | ||
Granted | 0.90 | ||
Exercised | 0.91 | ||
Forfeited | 0.65 | ||
Outstanding at the end of year | $ 0.95 | $ 0.75 | |
Vested and expected to vest at December 31, 2020 | $ | $ 0.95 | ||
Exercisable at December 31, 2020 | $ | $ 0.77 | ||
Weighted- average remaining contractual term | |||
Outstanding at the beginning of year | 5 years 2 months 12 days | 5 years 2 months 12 days | 6 years 2 months 12 days |
Granted | 3 years 4 months 24 days | 3 years 4 months 24 days | |
Exercised | 3 years 5 months 23 days | 3 years 5 months 23 days | |
Forfeited | 8 years | 8 years | |
Outstanding at the end of year | 5 years 2 months 12 days | 5 years 2 months 12 days | 6 years 2 months 12 days |
Vested and expected to vest at December 31, 2020 | 5 years 2 months 12 days | 5 years 2 months 12 days | |
Exercisable at December 31, 2020 | 4 years 7 months 6 days | 4 years 7 months 6 days | |
Aggregate intrinsic Value | |||
Outstanding at the beginning of year | $ | $ 172,436,000 | ||
Granted | $ | 1,010,000 | ||
Exercised | $ | 4,866,860,000 | ||
Forfeited | $ | 126,000 | ||
Outstanding at the end of year | 12,475,000 | ¥ 81,399 | $ 172,436,000 |
Vested and expected to vest at December 31, 2020 | $ | 12,475,000 | ||
Exercisable at December 31, 2020 | $ | 12,233,000 | ||
Fair value of options vested | $ 23,977,000 | ¥ 156,450 | $ 207,524,000 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2020CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Suboptimal early exercise multiple | 2.8 | ||||
Expected post-vesting forfeiture rate | 5.00% | 4.90% | |||
Fair value per ordinary share | $ 1.83 | $ 0.97 | |||
Aggregate fair value of the outstanding options | $ 23,977 | ¥ 156,450 | $ 207,524 | ||
Unrecognized share-based compensation cost | $ 4,429 | ¥ 28,899 | |||
Weighted-average period of recognition | 6 months 3 days | 6 months 3 days | |||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Risk-free interest rate | 1.95% | 2.93% | |||
Expected volatility | 56.21% | 55.46% | |||
Suboptimal early exercise multiple | 2.2 | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Risk-free interest rate | 1.96% | 3.06% | |||
Expected volatility | 56.25% | 58.33% | |||
Suboptimal early exercise multiple | 2.8 |
Share-Based Compensation - shar
Share-Based Compensation - share-based compensation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | ¥ 139,801 | $ 21,426 | ¥ 38,992 | ¥ 124,022 |
Sales and marketing expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 14,856 | 2,277 | 6,860 | 7,942 |
General and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 120,699 | 18,498 | 28,773 | 109,956 |
Research and development expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | ¥ 4,246 | $ 651 | ¥ 3,359 | ¥ 6,124 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | |
Restricted assets | |||
Percentage of annual after-tax profit which a foreign invested enterprise is required to allocate to general reserve fund | 10.00% | ||
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50.00% | ||
Statutory reserves | ¥ 0 | ¥ 0 | |
Restricted net assets | ¥ 277 | ¥ 61,199 | $ 42 |
Mainland China Employee Contr_2
Mainland China Employee Contribution Plan (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Mainland China Employee Contribution Plan | ||||
Expenses incurred for the PRC government-mandated multi-employer defined contribution plan | ¥ 16,182 | $ 2,480 | ¥ 26,229 | ¥ 18,414 |
Leases - Future lease payments
Leases - Future lease payments (Details) - Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Leases | ||
2021 | ¥ 1,650 | $ 253 |
2022 | 1,458 | 223 |
2023 | 1,458 | 223 |
Total undiscounted cash flows | 4,567 | 700 |
Less imputed interest | 372 | 57 |
Total lease liabilities balance | ¥ 4,195 | $ 643 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Cash payments for operating leases | ¥ 2,496 | $ 383 | ¥ 1,620 |
Leases (Details)
Leases (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | |
Leases | ||||
Lessee, Operating Lease, Existence of Residual Value Guarantee [true false] | false | false | ||
Weighted average remaining lease term | 2 months 1 day | 2 months 1 day | 10 months 28 days | 10 months 28 days |
Weighted average discount rate | 4.75% | 4.75% | 7.80% | 7.80% |
Operating lease cost | ¥ 2,496 | $ 383 | ¥ 2,930 | $ 421 |
Short-term lease cost | 0 | 0 | ||
Variable lease cost | ¥ 0 | ¥ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Future minimum lease payments (Details) - Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments and Contingencies | ||
2021 | ¥ 16,652 | $ 2,552 |
Total | ¥ 16,652 | $ 2,552 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingencies (Details) - 12 months ended Dec. 31, 2020 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Commitments and Contingencies | ||
Compensation expense for employee resignatio | ¥ 341 | $ 52 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Thousands | Mar. 03, 2021 | Apr. 07, 2021 |
White Lion Capital, LLC | Registration rights agreement | ||
Subsequent Events | ||
Amount of Purchase Notice Shares | $ 50,000 | |
Streeterville CapitalLLC | Securities purchase agreement | ||
Subsequent Events | ||
Amount of convertible debentures issued | $ 7,500 | |
Streeterville CapitalLLC | Securities purchase agreement | First Closing | ||
Subsequent Events | ||
Amount of convertible debentures issued | 2,500 | |
Streeterville CapitalLLC | Securities purchase agreement | Second Closing | ||
Subsequent Events | ||
Amount of convertible debentures issued | 2,500 | |
Streeterville CapitalLLC | Securities purchase agreement | Third Closing | ||
Subsequent Events | ||
Amount of convertible debentures issued | $ 2,500 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information - Condensed balance sheets (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | Dec. 31, 2018CNY (¥) |
Current Assets | |||||
Cash and cash equivalents | ¥ 11,311 | $ 1,733 | ¥ 15,156 | ¥ 6,477 | |
Prepayments and other current assets | 229,046 | 35,103 | 216,850 | ||
Total current assets | 663,186 | 101,637 | 486,832 | ||
Deferred assets | 15,826 | 2,425 | |||
Total Assets | 684,821 | 104,952 | 492,717 | ||
Current liabilities: | |||||
Accrued expenses and other liabilities | 132,674 | 20,333 | 103,026 | ||
Amounts due to related parties | 111,186 | 17,040 | 143,958 | ||
Total current liabilities | 692,606 | 106,146 | 675,761 | ||
Non-current Liabilities | |||||
Amounts due to related parties | ¥ | 33,453 | ||||
Total non-current liabilities | 20,052 | 3,073 | 33,453 | ||
Total Liabilities | 712,658 | 109,219 | 709,214 | ||
Shareholders' deficit | |||||
Ordinary shares (par value of US$0.00005 per share; 1,000,000,000 shares authorized; 310,627,024 and 389,819,415 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 114 | 17 | 98 | ||
Additional paid-in capital | 1,075,064 | 164,761 | 537,618 | ||
Accumulated other comprehensive loss | (21,192) | (3,248) | (316) | ||
Accumulated deficit | (1,081,914) | (165,811) | (753,897) | ||
Total Molecular Data Inc. shareholders' deficit | (27,928) | (4,281) | (216,497) | ||
TOTAL LIABILITIES AND DEFICIT | ¥ 684,821 | $ 104,952 | ¥ 492,717 | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||
Parent Company | |||||
Current Assets | |||||
Cash and cash equivalents | ¥ 2,818 | $ 432 | ¥ 446 | ||
Prepayments and other current assets | 396,995 | 60,842 | 56,293 | ||
Total current assets | 399,813 | 61,274 | 56,739 | ||
Deferred assets | 13,725 | 2,103 | |||
Total Assets | 413,538 | 63,377 | 56,739 | ||
Current liabilities: | |||||
Accrued expenses and other liabilities | 38,723 | 5,935 | 17,499 | ||
Amounts due to related parties | 57,310 | 8,783 | 36,126 | ||
Total current liabilities | 96,033 | 14,718 | 53,625 | ||
Non-current Liabilities | |||||
Amounts due to related parties | 10,606 | 1,625 | 12,822 | ||
Loss in excess of investments in subsidiaries, the VIEs and subsidiary of the VIE | 334,826 | 51,315 | 206,789 | ||
Total non-current liabilities | 345,432 | 52,940 | 219,611 | ||
Total Liabilities | 441,465 | 67,658 | 273,236 | ||
Shareholders' deficit | |||||
Ordinary shares (par value of US$0.00005 per share; 1,000,000,000 shares authorized; 310,627,024 and 389,819,415 shares issued and outstanding as of December 31, 2019 and 2020, respectively) | 114 | 17 | 98 | ||
Additional paid-in capital | 1,075,064 | 164,761 | 537,618 | ||
Accumulated other comprehensive loss | (21,192) | (3,248) | (316) | ||
Accumulated deficit | (1,081,914) | (165,811) | (753,897) | ||
Total Molecular Data Inc. shareholders' deficit | (27,928) | (4,281) | (216,497) | ||
TOTAL LIABILITIES AND DEFICIT | ¥ 413,537 | $ 63,377 | ¥ 56,739 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00005 | $ 0.00005 | |||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||
Common stock, shares issued | 389,819,415 | 389,819,415 | 310,627,024 | ||
Common stock, shares outstanding | 389,819,415 | 389,819,415 | 310,627,024 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information - Condensed statements of comprehensive loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Statement of Income Captions [Line Items] | ||||
Sales and marketing expenses | ¥ (67,018) | $ (10,271) | ¥ (108,858) | ¥ (103,293) |
General and administrative expenses | (210,401) | (32,245) | (104,471) | (173,872) |
Research and development expenses | (35,215) | (5,397) | (45,038) | (36,889) |
Total operating expenses | (321,358) | (49,250) | (292,985) | (315,961) |
Operating loss | (331,557) | (50,813) | (192,212) | (235,792) |
Other income | 11,890 | 1,822 | 3,311 | 3,235 |
Foreign exchange income | 5,459 | 837 | 185 | (3,033) |
Loss before income tax | (325,580) | (49,897) | (193,083) | (254,639) |
Income tax expenses | (2,458) | (377) | (465) | 0 |
Net loss | (327,997) | (50,268) | (193,548) | (254,639) |
Foreign currency translation adjustments, net of tax of nil | 20,876 | 3,199 | 316 | 0 |
Less: comprehensive loss attributable to non-controlling interest | (41) | (6) | 0 | 0 |
Parent Company | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Sales and marketing expenses | (23,557) | (3,610) | (6,860) | (7,942) |
General and administrative expenses | (164,752) | (25,250) | (38,428) | (109,956) |
Research and development expenses | (8,537) | (1,308) | (3,359) | (6,124) |
Total operating expenses | (196,846) | (30,168) | (48,647) | (124,022) |
Operating loss | (196,846) | (30,168) | (48,647) | (124,022) |
Other income | 3,263 | 500 | ||
Foreign exchange income | 3 | 262 | ||
Share of losses from subsidiaries, the VIEs and subsidiary of the VIE | (127,691) | (19,569) | (145,163) | (130,617) |
Loss before income tax | (321,271) | (49,237) | (193,548) | (254,639) |
Income tax expenses | 6,726 | 1,031 | ||
Net loss | (327,997) | (50,268) | (193,548) | (254,639) |
Foreign currency translation adjustments, net of tax of nil | 20,876 | 3,199 | 316 | |
Less: comprehensive loss attributable to non-controlling interest | ¥ (307,121) | $ (47,069) | ¥ (193,232) | ¥ (254,639) |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash used in operating activities | ¥ (234,048) | $ (35,870) | ¥ (95,821) | ¥ (134,636) |
Net cash generated from investing activities | (320,308) | (49,089) | (1,820) | (2,242) |
Net cash generated from financing activities | 529,143 | 81,095 | 149,399 | 37,333 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (46,086) | (7,064) | 51,197 | (99,545) |
Cash, cash equivalents and restricted cash at beginning of year | 57,674 | 8,839 | 6,477 | 106,022 |
Cash, cash equivalents and restricted cash at end of year | 11,588 | 1,775 | 57,674 | ¥ 6,477 |
Parent Company | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash used in operating activities | (506,681) | (77,651) | (9,709) | |
Net cash generated from financing activities | 509,053 | 78,016 | 10,155 | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 2,372 | 365 | 446 | |
Cash, cash equivalents and restricted cash at beginning of year | 446 | 68 | ||
Cash, cash equivalents and restricted cash at end of year | ¥ 2,818 | $ 433 | ¥ 446 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Fair value measurements of financial instruments (Details) ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Summary of Significant Accounting Policies | |
Non-current amounts due to related parties | ¥ 33,453 |