Cover Page
Cover Page | 6 Months Ended |
Mar. 31, 2023 | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2023 |
Entity Registrant Name | FLJ Group Limited |
Entity Central Index Key | 0001769256 |
Current Fiscal Year End Date | --09-30 |
Entity Address, Address Line One | 2F, Building 5 |
Entity Address, Address Line Two | No.18, Gongping Road |
Entity Address, Address Line Three | Hongkou District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity File Number | 001-39111 |
Entity Address, Postal Zip Code | 200082 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 2,276 | $ 331 | ¥ 2,772 |
Restricted cash | 106 | 15 | 106 |
Accounts receivable, net | 2,301 | 335 | 752 |
Advances to suppliers | 8,527 | 1,242 | 8,501 |
Other current assets | 73,970 | 10,771 | 59,029 |
Total current assets | 87,180 | 12,694 | 71,160 |
Non-current assets: | |||
Property and equipment, net | 342 | 50 | 500 |
Intangible assets, net | 13,475 | ||
Operating lease right of use assets | 417,556 | 60,801 | |
Other assets | 10,321 | 1,503 | 10,405 |
Total non-current assets | 428,219 | 62,354 | 24,380 |
Total assets | 515,399 | 75,048 | 95,540 |
Current liabilities: | |||
Accounts payable | 156,794 | 22,831 | 122,667 |
Deferred revenue | 100,074 | 14,572 | 129,930 |
Short-term debt | 135,624 | 19,748 | 110,097 |
Rental instalment loans | 15,756 | 2,294 | 15,756 |
Deposits from tenants | 29,723 | 4,328 | 38,439 |
Contingent liabilities for payable for asset acquisition | 159,328 | 23,200 | 165,033 |
Operating lease liabilities, current | 228,655 | 33,295 | |
Accrued expenses and other current liabilities | 103,870 | 15,126 | 81,649 |
Total current liabilities | 935,218 | 136,179 | 668,402 |
Operating lease liabilities, non-current | 188,901 | 27,506 | |
Total liabilities | 1,124,119 | 163,685 | 668,402 |
Commitments and contingencies (Note 14) | |||
Shareholders' Deficit: | |||
Additional paid-in capital | 2,956,760 | 430,538 | 2,954,625 |
Accumulated deficit | (3,601,992) | (524,492) | (3,558,667) |
Accumulated other comprehensive income | 34,613 | 5,041 | 29,453 |
Total shareholders' deficit | (608,720) | (88,637) | (572,862) |
Total liabilities and shareholders' deficit | 515,399 | 75,048 | 95,540 |
Related Party [Member] | |||
Current liabilities: | |||
Amounts due to related parties | 5,394 | 785 | 4,831 |
Class A Ordinary Shares | |||
Shareholders' Deficit: | |||
Ordinary shares value | 1,727 | 251 | ¥ 1,727 |
Class B Ordinary Shares | |||
Shareholders' Deficit: | |||
Ordinary shares value | ¥ 172 | $ 25 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Sep. 30, 2022 |
Class A Ordinary Shares | ||
Ordinary shares, par value | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized | 37,500,000,000 | 37,500,000,000 |
Ordinary shares, shares issued | 25,878,920,464 | 25,878,920,464 |
Ordinary shares, shares outstanding | 25,878,920,464 | 25,878,920,464 |
Class B Ordinary Shares | ||
Ordinary shares, par value | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized | 2,500,000,000 | 2,500,000,000 |
Ordinary shares, shares issued | 2,500,000,000 | 0 |
Ordinary shares, shares outstanding | 2,500,000,000 | 0 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | |
Net revenues: | |||
Rental service | ¥ 175,148 | $ 25,504 | ¥ 332,783 |
Value-added services and others | 24,522 | 3,571 | 31,431 |
Total net revenues | 199,670 | 29,075 | 364,214 |
Operating costs and expenses: | |||
Operating cost | (217,295) | (31,642) | (405,661) |
Selling and marketing expenses | (15) | (2) | (189) |
General and administrative expenses | (15,422) | (2,246) | (25,329) |
Research and development expenses | (1,308) | (190) | (1,853) |
Impairment loss on long-lived assets | (10,474) | (1,525) | (100,156) |
Other income (expense), net | 2,157 | 314 | (20,074) |
Total operating costs and expenses | (242,357) | (35,291) | (553,262) |
Loss from operations | (42,687) | (6,216) | (189,048) |
Interest expense, net | (638) | (93) | (54,174) |
Foreign exchange loss, net | ¥ | (5) | ||
Loss before income taxes | (43,325) | (6,309) | (243,227) |
Income tax expense | ¥ | (3) | ||
Net loss | (43,325) | (6,309) | (243,224) |
Other comprehensive income, net of tax of nil: | |||
Foreign currency translation adjustments | 5,160 | 751 | 3,642 |
Comprehensive loss | ¥ (38,165) | $ (5,558) | ¥ (239,582) |
Net loss per share-Basic | (per share) | ¥ 0 | $ 0 | ¥ (0.14) |
Net loss per share - diluted | (per share) | ¥ 0 | $ 0 | ¥ (0.14) |
Weighted average number of ordinary shares used in computing net loss per share - Basic | shares | 27,715,937,039 | 27,715,937,039 | 1,728,612,425 |
Weighted average number of ordinary shares used in computing net loss per share - diluted | shares | 27,715,937,039 | 27,715,937,039 | 1,728,612,425 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other comprehensive income (expenses), tax | ¥ 0 | ¥ 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN DEFICIT ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Ordinary Shares Class A Ordinary Shares CNY (¥) shares | Ordinary Shares Class B Ordinary Shares CNY (¥) shares | Treasury Stock CNY (¥) shares | Additional paid in capital CNY (¥) | Accumulated other comprehensive (loss) income CNY (¥) | Accumulated deficit CNY (¥) | Total CNY (¥) | Noncontrolling interests CNY (¥) |
Beginning balance at Sep. 30, 2021 | ¥ (2,484,906) | ¥ 99 | ¥ 11 | ¥ (5) | ¥ 1,845,295 | ¥ 38,784 | ¥ (4,378,690) | ¥ (2,494,506) | ¥ 9,600 | |
Beginning balance, shares at Sep. 30, 2021 | shares | 1,544,097,151 | 180,389,549 | (77,100,000) | |||||||
Issuance of ordinary shares to settle the acquisition of certain assets from two third parties | ¥ 1 | (1) | ||||||||
Issuance of ordinary shares to settle the acquisition of certain assets from two third parties, shares | shares | 7,662,060 | |||||||||
Share-based compensation | 399 | 399 | 399 | |||||||
Warrants issued in connection with convertible notes | 1,420 | 1,420 | 1,420 | |||||||
Net loss | (243,224) | (243,224) | (243,224) | |||||||
Foreign currency translation adjustments | 3,642 | 3,642 | 3,642 | |||||||
Ending balance at Mar. 31, 2022 | (2,722,669) | ¥ 100 | ¥ 11 | ¥ (5) | 1,847,113 | 42,426 | (4,621,914) | (2,732,269) | ¥ 9,600 | |
Ending balance, shares at Mar. 31, 2022 | shares | 1,551,759,211 | 180,389,549 | (77,100,000) | |||||||
Beginning balance at Sep. 30, 2022 | (572,862) | ¥ 1,727 | 2,954,625 | 29,453 | (3,558,667) | (572,862) | ||||
Beginning balance, shares at Sep. 30, 2022 | shares | 25,878,920,464 | |||||||||
Issuance of class B ordinary shares | ¥ 172 | (172) | ||||||||
Issuance of class B ordinary shares, share | shares | 2,500,000,000 | |||||||||
Share-based compensation | 2,307 | 2,307 | 2,307 | |||||||
Net loss | (43,325) | $ (6,309) | (43,325) | (43,325) | ||||||
Foreign currency translation adjustments | 5,160 | $ 751 | 5,160 | 5,160 | ||||||
Ending balance at Mar. 31, 2023 | ¥ (608,720) | ¥ 1,727 | ¥ 172 | ¥ 2,956,760 | ¥ 34,613 | ¥ (3,601,992) | ¥ (608,720) | |||
Ending balance, shares at Mar. 31, 2023 | shares | 25,878,920,464 | 2,500,000,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | |
Statement of Cash Flows [Abstract] | ||||
Net cash used in operating activities | ¥ (25,478) | $ (3,713) | ¥ (27,545) | |
Financing activities: | ||||
Proceeds from issuance of convertible notes | 17,832 | |||
Proceeds from short-term borrowings | 25,527 | 3,717 | ||
Repayment of rental instalment loans | (1,300) | |||
Net cash provided by financing activities | 25,527 | 3,717 | 16,532 | |
Effect of foreign exchange rate changes | (545) | (77) | (142) | |
Net decrease in cash, cash equivalents and restricted cash | (496) | (73) | (11,155) | |
Cash, cash equivalents and restricted cash at the beginning of the period | 2,878 | 419 | 19,252 | ¥ 19,252 |
Cash, cash equivalents and restricted cash at the end of the period | 2,382 | 346 | 8,097 | 2,878 |
Supplemental schedule of non-cash investing and financing activities: | ||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 547,440 | 79,713 | ||
Supplemental disclosure of cash flow information: | ||||
Income taxes paid | 4 | |||
Reconciliation to amounts on the condensed consolidated balance sheets: | ||||
Cash and cash equivalents | 2,276 | 331 | 2,772 | |
Restricted cash | 106 | $ 15 | 106 | |
Cash, cash equivalents and restricted cash at the end of the year | ¥ 2,382 | ¥ 8,097 | ¥ 2,878 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 6 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES FLJ Group Limited (formerly known as “Q&K International Group Limited”) (the “Company” or “FLJ”), its subsidiaries and consolidated variable interest entities (the “Group”) is a rental apartment operation platform in the People’s Republic of China (the “PRC”), that provides rental and value-added services to young, emerging urban residents since 2012. The Group sources and converts apartments to standardized furnished rooms and leases to young people seeking affordable residence in cities in the PRC. The Company has changed its corporate name from “Q&K International Group Limited” to “FLJ Group Limited”, effective on September 13, 2022. In addition, the Company began trading under the new ticker symbol “FLJ” on the NASDAQ effective on September 26, 2022. Effective on March 7, 2022, the Group changed the ratio of the American depositary shares (“ADSs”) representing its Class A ordinary shares from one (1) ADS representing thirty ( 30 ) Class A ordinary share to one (1) ADS representing one hundred and fifty ( 150 ) Class A ordinary shares. For the ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split. There will be no change to the Group’s Class A ordinary shares. The exchange of every five (5) then-held (old) ADSs for one (1) new ADS will occur automatically with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank, in each case as of the effective date for the ADS ratio change. No fractional new ADSs will be issued in connection with the change in the ADS ratio. On October 26, 2021 and December 17, 2021, the Group transferred of all of its equity interest in Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting”) and Qingke (China) Limited (“Q&K HK”), respectively, to Wangxiancai Limited, which is a related party of the Group, and is beneficially owned by the legal representative and executive director of one of the Group’s subsidiaries (the “Equity Transfer”). The Equity Transfer was made at nominal consideration. As of September 30, 2022, the Group no longer conducts substantial operation through any variable interest entity. As of September 30, 2022, four of the subsidiaries of Shanghai Qingke E-Commerce Co., Ltd. (“Q&K E- Commerce”) filed the voluntary petition for bankruptcy under the Article 2 of the PRC Enterprise Bankruptcy Law with Shanghai Third Intermediary Court (“Court”), and the Court announced the effectiveness of the petition and the administrator of bankruptcy was assigned on board. Accordingly the Group had no control over the allocation of remaining assets in liquidation of these subsidiaries and their subsidiaries (collectively “Deconsolidated VIE’s Subsidiaries”), accordingly the Company deconsolidated these deconsolidated subsidiaries . The management believed the deconsolidation of Deconsolidated VIE’s Subsidiaries does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The deconsolidation is not accounted as discontinued operations in accordance with ASC 205-20. The Group did not account for the transfer of equity interest in Q&K HK, Q&K Investment Consulting and Q&K E-commerce as a discontinued operation, as FLJ is the primary beneficiary of Q&K HK, Q&K Investment Consulting and Q&K E-commerce as FLJ has the power to direct the activities of these companies that most significantly impact their economic performance and FLJ has the obligation to absorb losses of these companies that could potentially be significant to these companies since their inception. The Group accounted for Q&K HK, Q&K Investment Consulting and Q&K E-commerce as variable interest entities. Accordingly, the accompanying consolidated financial statements include the financial statements of Q&K HK, Q&K Investment Consulting and Q&K E-commerce. As of March 31, 2023, the Group’s significant subsidiaries and VIE: Entity Date of Place of Percentage of Principal Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding Fenglinju (China) Hong Kong October 21, 2021 Hong Kong 100 % Holding Haoju (Shanghai) Artificial May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment June 19, 2020 PRC 100 % Operating VIE: QingKe (China) Limited July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., April 2, 2015 PRC 100 % Holding and Operating Shanghai Qingke E-Commerce Co., August 2, 2013 PRC 100 % Holding and Operating |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the Group’s audited consolidated financial statements for the years ended September 30, 2022 filed on February 15, 2022. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Group believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Group’s consolidated financial statements for the year ended September 30, 2022. The results of operations for the six months ended March 31, 2022 and 2023 are not necessarily indicative of the results for the full years. Going concern The Group has been incurring losses from operations since its inception. Accumulated deficits amounted to RMB 3,558,667 and RMB 3,601,992 as of September 30, 2022 and March 31, 2023, respectively. Net cash used in operating activities were RMB 27,545 and RMB 25,478 for the six months ended March 31, 2022 and 2023, respectively. As of September 30, 2022 and March 31, 2023, current liabilities exceeded current assets by RMB 597,242 and RMB 848,038 , respectively. These factors raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Group is unable to continue as a going concern. The Group has adopted a defensive strategy after a prudent assessment of the broader macroeconomic downturn since COVID-19 by consolidating internal resources, further improving operating efficiencies and focusing on asset quality improvement rather than aggressive expansion. The Group’s number of rental units contracted as well as number of available rental units decreased by 48.5 % from March 31, 2022 to March 31, 2023, as the Group continued to optimize its rental asset portfolio. On the other hand, the Group’s total operating cost and expenses decreased by 56.2 % from RMB 553.3 million (US$ 87.3 million) inthe six months ended March 31, 2022 to RMB 242.4 million (US$ 35.3 million) in the six months ended March 31, 2023 and its net loss narrowed by 82.2 % from RMB 243.2 million (US$ 38.4 million) in the six months ended March 31, 2022 to RMB 43.3 million (US$ 6.3 million) in the six months ended March 31, 2023. The Group intends to meet the cash requirements for the next 12 months from the issuance date of this report through a combination of bank loans and short-term loan from certain third parties, issuance of ordinary shares or other equity-linked securities. In addition, the Group has continued to adopt the defensive strategy mentioned above and optimize its rental asset portfolio. The Group’s number of rental units contracted and available rental units decreased from 55,177 as of March 31, 2022 to 28,400 as of March 31, 2023 during the same period, whereas its loss from operation decreased from RMB 189.0 million in the six months ended March 31, 2022 to RMB 42.7 million in the six months ended March 31, 2023. The Group will also focus on the follow activity: • On October 26, 2022, the Company’s Form F-3 to offer up to a total amount of $ 300 million was declared effective. The Company plans to raise funds under the Form F-3 to support the Company’s operations. The Management plan cannot alleviate the substantial doubt of the Group’s ability to continue as a going concern. There can be no assurance that the Group will be successful in achieving its strategic plans, that the Group's future capital raises will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or with acceptable terms, if at all. If the Group is unable to raise sufficient financing or events or circumstances occur such that the Group is not able to achieve ideal optimization of its asset portfolio, the Group will be required to reduce certain discretionary spending, alter or scale back research and development programs, or be unable to fund capital expenditures, which would have a material adverse effect on the Group's financial position, results of operations, cash flows, and ability to achieve its intended business objectives. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the unaudited condensed consolidated financial statements have been prepared on a basis that assumes the Group will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Financial statement amounts and balances of the VIE and its subsidiaries The following financial statement amounts and balances of the Q&K HK, Q&K Investment Consulting and Q&K E-Commerce (collectively "VIE entities") and their subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The revenues, net loss and cash flows for the six months ended March 31, 2022 represented the amounts of Q&K HK and Q&K Investment Consulting for the period from dates of equity transfer through March 31, 2022, and the amounts of the amounts of Q&K E-Commerce and its subsidiaries for the six months ended March 31, 2022. The revenues, net loss and cash flows for the six months ended March 31, 2023 represented the amounts of VIE entities for the six months ended March 31, 2023. As of September 30, As of March 31, 2022 2023 RMB RMB USD ASSETS Cash and cash equivalents 62 63 9 Advances to suppliers 6,131 6,136 893 Other current assets 2,572 2,572 375 Other assets 98 98 14 Total assets 8,863 8,869 1,291 LIABILITIES Accounts payable 34 34 5 Deferred revenue 16 16 2 Short-term debt 13,000 13,000 1,893 Accrued expenses and other current liabilities 67,908 68,124 9,920 Total liabilities 80,958 81,174 11,820 For the Six Months Ended March 31, 2022 2023 RMB RMB USD Net revenues 1,621 — — Net loss ( 41,909 ) ( 221 ) ( 32 ) Net cash used in operating activities ( 10,773 ) 1 0 Net cash provided by investing activities — — — Net cash provided by financing activities — — — The consolidated VIE entities and their subsidiaries contributed 0.4 % and nil of the Group’s consolidated revenues for the six months ended March 31, 2022 and 2023. As of September 30, 2022 and March 31, 2023, the consolidated VIE entities and their subsidiaries accounted for an aggregate of 9 % and 2 %, respectively, of the Group’s consolidated total assets, and 12 % and 7 %, respectively, of the Group’s consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE entities. However, the Company has provided and will continue to provide financial support to the VIE considering the business requirements of the VIE entities, as well as the Company’s own business objectives in the future. There are no assets held in the VIE entities and its subsidiaries that can be used only to settle obligations of the VIE entities and their subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE entities and their subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE entities do not have recourse to the general credit of the Group for any of the liabilities of the VIE entities. Relevant PRC laws and regulations restrict the VIE entities from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Group in the form of loans and advances or cash dividends. Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures 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 Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. For the six months ended March 31, 2022 and 2023, the Group recognized impairment of RMB 100,156 and RMB 10,474 against trademark and apartment rental contracts ( See Note 5 – Intangible assets ), respectively. Revenue Recognition The Group sources apartments from landlords and convert them into standardized furnished rooms to lease to tenants seeking affordable residences in China. Revenues are primarily derived from rental service and value-added services. Rental Service Revenues Rental service revenues are primarily derived from the lease payments from tenants and are recorded net of tax. The Group typically enters into 26-month leases with tenants, a majority of which have a lock-in period of 12 months or shorter. The lock-in period represents the term during which termination will result in the forfeiture of deposit, which is typically one or two months’ rent. The Group determines that the lock-in period is the lease term under ASC 840. When tenants terminate their leases, the Group returns unused portions of any prepaid rentals to the tenant within a prescribed period of time. Deposit can only be returned for termination after the lock-in period. Monthly rent is fixed throughout the lock-in period and there is no rent-free period or rent escalations during the period. The Group determines all lease arrangements with tenants are operating leases since the benefits and risks incidental to ownership remains with the Group. Revenue is recognized on a straight-line basis starting from the commencement date stated in the lease agreements. Value-added Services and Others Value-added services and others primarily consist of fees received from the tenants from provision of internet connection and utility services as part of the lease agreement. The service fees are fixed in the agreements and recognized on a monthly basis during the period of the lease term. The service fee are recognized on a gross basis as the Group has latitude in determining prices and bear inventory risks. Operating lease The Company adopted the ASU 2016-02, Leases (Topic 842) on October 1, 2022 using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases apartments from landlords, which are classified as operating leases in accordance with Topic 842. Operating leases are required to record in the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease exemption as the lease terms are 12 months or less. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. There was no impairment for right-of-use lease assets as of March 31, 2023 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 6 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | 3. OTHER CURRENT ASSETS Other current assets consist of the following: As of September 30, As of March 31, 2022 2023 Due from a service provider (1) 36,100 37,552 Deposit for share settlement (2) 21,341 20,602 Due from shareholders (3) — 13,910 Others 1,588 1,906 59,029 73,970 (1) Upon asset acquisition with Beautiful House, the Group engaged a third party service provider to provide apartment operation services to the Group. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House. To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and loans are repayable on demand. (2) Upon settle payables due to Beautiful House arising from asset acquisition, the Group made a deposit of RMB 20,602 (US$ 3,000 ) to Beautiful House, which is expected to get repaid upon share settlement. (3) During the six months ended March 31, 2023, the Company paid RMB 13,910 on behalf of certain shareholders who owned less than 5 % of outstanding shares of the Company, for transfer of their ordinary shares into ADS which could be traded in the open market. The balance was repayable on demand. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: As of September 30, As of March 31, 2022 2023 Cost: Vehicle 2,269 2,269 Office furniture, fixtures and equipment 922 922 3,191 3,191 Less: Accumulated depreciation ( 2,691 ) ( 2,849 ) 500 342 Depreciation expenses were RMB 474 and RMB 158 and for the six months ended March 31, 2022 and 2023, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 6 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 5. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of September 30, As of March 31, 2022 2023 Cost: Apartment rental contracts 55,967 3,001 Trademarks 16,294 — 72,261 3,001 Less: Accumulated amortization ( 58,786 ) ( 3,001 ) 13,475 — Amortization expenses were RMB 21,967 and RMB 3,001 for the six months ended March 31, 2022 and 2023, respectively. Impairment loss against intangible assets were RMB 100,156 and RMB 10,474 for the six months ended March 31, 2022 and 2023, respectively. Impairment of apartment rental contracts The Group acquired from Great Alliance Coliving Limited. and its affiliates (“Beautiful House”) certain assets, including approximately 72,000 apartment rental contracts and leasehold improvements attached to the apartments, and trademarks of Beautiful House. The Group determined the estimated fair values using Level 3 inputs after review and consideration of relevant information, which are unobservable inputs that fall within Level 3 of the fair value hierarchy. As of March 31, 2022 and March 31, 2023, the Group reviewed the fair value of the apartment rental agreements based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected rooms’ revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. As a result, the Group has determined that the majority of the inputs used to value its apartment rental agreements is unobservable inputs that fall within Level 3 of the fair value hierarchy. The revenue growth rate and the discount rate were the significant unobservable inputs used in the fair value measurement. The revenue growth rate for apartment rental agreements was 0 %, and the discount rate was 11 % for the six months ended March 31, 2022, both of which met the profit projection target. The carrying amount of apartment rental agreements exceeds its fair value by RMB 29,550 , the Group recognized impairment against apartment rental agreements of RMB 29,550 for the six months ended March 31, 2022. The revenue growth rate for apartment rental agreements was 0 %, as a result of increase of unit rental fee by 0 %, and the discount rate was 11 % for the six months ended March 31, 2023, which underperformed the profit projection target. The Group provided impairment of RMB 10,474 on apartment rental contracts for the six months ended March 31, 2023. Impairment of trademarks As of March 31, 2022, the Group wrote off full trademark balance because the trademark will not be used in the future consider the future business development. |
SHORT-TERM DEBT
SHORT-TERM DEBT | 6 Months Ended |
Mar. 31, 2023 | |
Short-Term Debt [Abstract] | |
SHORT-TERM DEBT | 6. SHORT-TERM DEBT The short-term debts were as follows: As of September 30, As of March 31, 2022 2023 Short-term bank borrowings 103,552 103,552 Other short-term payable (1) 6,545 32,072 110,097 135,624 (1) During the six months ended March 31, 2023, the Company entered into loan agreements with certain third parties to borrow an aggregation of RMB 25,527 (equivalent of US$ 3,750 ). The loans bore an interest rate of 3.85 % per annum and payable in twelve months. |
OPERATING LEASE
OPERATING LEASE | 6 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
OPERATING LEASE | 7. OPERATING LEASE The Group leases apartments from landlords usually for a period of five to six years which may be extended for an additional three or two years at the discretion of the landlords. Since all the benefits and risks incidental to ownership remains with the landlord, the Group determines that these arrangements are operating leases. The Group typically negotiates a rent-free period of one – two months per year and locks in a fixed rent for the first three years and approximately 5 % annual, non-compounding increase for the rest of the lease period. As such, typically all leases with landlords contain rent holidays and fixed escalations of rental payments during the lease term. The Group considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term. The Group determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Group uses the rate implicit in the lease to discount lease payments to present value; however, most of the leases do not provide a readily determinable implicit rate. Therefore, the Group discount lease payments based on an estimate of the incremental borrowing rate. For operating leases that include rent holidays and rent escalation clauses, the Group recognizes lease expense on a straight-line basis over the lease term from the date it takes possession of the leased property. The Group records the straight-line lease expense and any contingent rent, if applicable, in general and administrative expenses on the consolidated statements of income and comprehensive income. The apartment leases also require the Group to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in the general and administrative expenses on the condensed consolidated statements of income and comprehensive income. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. For short-term leases, the Group records operating lease expense in its consolidated statements of income and comprehensive income on a straight-line basis over the lease term and record variable lease payments as incurred. The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets. As of September 30, As of March 31, 2022 2023 Right of use assets — 417,556 Operating lease liabilities, current — 228,655 Operating lease liabilities, noncurrent — 188,901 Total operating lease liabilities — 417,556 Other information about the Company’s leases is as follows: For the Six Months Ended March 31, 2022 2023 Weighted average remaining lease term (years) — 2.36 Weighted average discount rate — 4.47 % Operating lease expenses were RMB 300,668 and RMB 172,046 , respectively, for the six months ended March 31, 2022 and 2023, respectively. The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2023: March 31, 2023 For the six months ending September 30, 2023 136,507 For the year ending September 30, 2024 175,537 For the year ending September 30, 2025 72,950 For the year ending September 30, 2026 26,765 For the year ending September 30, 2027 14,500 For the year ending September 30, 2028 and thereafter 17,968 Total lease payments 444,227 Less: Imputed interest ( 26,671 ) Present value of lease liabilities 417,556 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of September 30, As of March 31, 2022 2023 Tenant deposits 5,184 21,432 Other tax payable 63,619 75,600 Interest payable 1,680 2,120 Accrued payroll and welfare 3,999 1,538 Others 7,167 3,180 81,649 103,870 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 9. SHARE BASED COMPENSATION The Group utilized Yijia Inc., a company controlled by the Founder as a vehicle to hold shares that will be used to provide incentives and rewards to employees and executives who contribute to the success of the Group’s operations. According to the Group’s board resolutions, in July 2017 and March 2018, 86 million shares were reserved to Yijia Inc. Yijia Inc. has no activities other than administrating the incentive program and does not have any employees. On behalf of the Group and subject to approvals from the board or directors, the Founder has the authority to select eligible participants to whom equity awards will be granted; determine the number of shares covered; and establish the terms, conditions and provision of such awards. The board resolutions allow the grantees to hold options to purchase from the Yijia Inc. the equity shares of the Group. As of June 24, 2022, Yijia Inc. held 75.2 million Class B ordinary shares. On June 24, 2022, Yijia Inc. transferred all reserved ordinary shares to Golden Stream Limited, a company controlled by Mr. Qu Chengcai, the Chief Executive Officer of the Group. Upon transfer, the Class B ordinary shares previously held by Yijia Inc. were automatically converted to Class A ordinary shares pursuant to the Company’s third amended and restated memorandum and articles of association. Since then, Golden Stream Limited became a vehicle to hold shares that will be used to provide incentives and rewards to employees and executives who contribute to the success of the Group’s operations. The board resolutions allow the grantees to hold options to purchase from the Golden Stream Limited the equity shares of the Group. All the share information disclosed under Stock Option A and Stock Option B in this section refers to the shares of the Group the grantees are entitled through Yijia Inc. shares before June 24, 2022 and through Golden Stream Limited after June 24, 2022. The related expenses are reflected in the Group’s consolidated financial statements as share-based compensation expenses with an offset to additional paid-in capital. Given the shares owned by Yijia Inc./ Golden Stream Limited for the purpose of the incentive program are existing and outstanding shares of the Group, the options do not have any dilution effect on the loss per share (see Note 11). Stock Option A On August 31, 2014, April 21, 2016, October 17, 2016 and October 18, 2016, the Group granted an aggregate number of 26.86 million share options to certain management, employees and non-employees of the Group. Under the plan, the exercise price was US$ 0.31 (RMB 2.00 ) per share and vests 50 % on the first and second anniversary after the IPO date. All grantees were restricted from transferring more than 25 % of their total exercised ordinary shares each year after the exercise date. Given the vesting was contingent on the IPO and vested on the first and second anniversary after the IPO date, no share-based compensation expense is recognized until the date of IPO. For the year ended September 30, 2021, no share options were vested or exercised. As of September 30, 2022 and March 31, 2023, the number of outstanding options is 10,250,000 and 10,250,000 , respectively, which was equal to the number of option expected to be vested. The remaining Stock Options A are exercisable into 10,250,000 Class B ordinary shares. Because the exercise price is out of money, the weighted average intrinsic value of the outstanding options and the options expected to vest was RMB nil. Stock Option B On July 31, 2017, the Group granted 43.14 million share options to management and employees of the Group. The options vested immediately upon the grant date and the exercise price were US$ 0.31 (RMB 2.00 ) per share. All grantees were restricted from transferring its exercised ordinary shares during certain periods subsequent to the IPO date (the “lock-up period”). If the grantee resigned from the Group before the IPO or during the lock-up period, the Group has the right to repurchase the share options or ordinary shares at the exercise price. The Group believes that the repurchase feature is effectively to require the employee to remain throughout the requisite period in order to receive any economic benefit from the award. As such, the repurchase feature functions as a vesting condition that is contingent on the IPO, no share-based compensation expense is recognized until the date of IPO. As of September 30, 2022 and March 31, 2022, the Group had 23,850,000 and 23,850,000 share options outstanding, vested and exercisable. The remaining Stock Options B are exercisable into 23,850,000 Class A ordinary shares. Because the exercise price is out of money, the weighted average intrinsic value of these share options were RMB nil . Binomial options pricing model was applied in determining the estimated fair value of the options granted. The model requires the input of highly subjective assumptions including the estimated expected stock price volatility and, the exercise multiple for which employees are likely to exercise share options. The estimated fair value of the ordinary shares, at the option grants, was determined with assistance from an independent third party valuation firm. The Group’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented: April 2016 October 2016 July 2017 Risk-free rate of return 3.18 % 3.18 % 3.21 % Contractual life of option 10 years 10 years 8.4 years Estimated volatility rate 37 % 37 % 35 % Expected dividend yield 0 % 0 % 0 % Fair value of underlying ordinary US $ 0.03 US $ 0.04 US $ 0.05 2019 Share Incentive Plan The 2019 Share Incentive Plan became effective immediately upon the completion of our initial public offering. The maximum number of shares that may be issued under the 2019 Plan is 10 % of the total outstanding shares as of the date of the consummation of our initial public offering. In June 2022, the Group issued 72 million stock options with nil exercise price to Mr. Qu, the Chief Executive Officer of the Company. All of the stock options were vested and exercised immediately upon grant. The Group recorded stock options at the grant date fair value per ADS of US$ 1.4537 by reference to the share price in the open market on grant date. In June 2022, the Group issued 50.36 million stock options with nil exercise price to Mr. Sun, the Chief Financial Officer of the Company, of which 43.18 million stock options vested and exercised immediately upon grant, 3.59 million stock options vested on August 3, 2022, and the remaining 3.59 million stock options vested on August 3, 2023. As of March 31, 2023, the 3.59 million stock options vested on August 3, 2022 was no t exercised by or issued to Mr. Sun. The Group recorded stock options at the grant date fair value per ADS of US$ 1.4537 by reference to the share price in the open market on grant date. For the six months ended March 31, 2023, no option activities were incurred. As of March 31, 2023, 37,690,027 options were vested and exercisable. The Group recognized the compensation cost for the stock options on a straight line basis over the requisite service periods. For the six months ended March 31, 2022 and 2023, the Group recorded compensation expenses of RMB 399 and RMB 2,307 in connection with the above stock options. As of September 30, 2022, the Group had unrecognized compensation expenses for stock options of RMB 69 . For the six months ended March 31, 2022 and 2023, the total share-based compensation expenses were comprised of the following: For the Six Months Ended March 31, 2022 2023 Selling and marketing expenses 2 12 General and administrative expenses 4 2,273 Research and development expenses 393 22 399 2,307 |
EQUITY
EQUITY | 6 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
EQUITY | 10. EQUITY Class B Ordinary Shares On November 18, 2022, the board of directors has approved and adopted a new share incentive plan (the “2022 Plan”). The maximum number of shares available for issuance under the 2022 Plan is 2,500,000,000 Class B ordinary shares of the Company (the “Shares”). In respect of matters requiring the votes of shareholders, holders of Class A ordinary shares are entitled to one vote per share , while holders of Class B ordinary shares are entitled to ten votes per share based on our dual class share structure. Each Class B ordinary share is convertible into one (1) Class A ordinary share at any time by the holder thereof, while Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Upon any transfer of Class B ordinary shares by a holder thereof to any person or entity which is not an affiliate of such holder, such Class B ordinary shares shall be automatically and immediately converted into the equal number of Class A ordinary shares. The board of directors has also approved the issuance of the Shares to an ESOP Platform, which is holding these Shares (representing 8.8 % of the total outstanding share capital and 49.1 % of the voting power of the Company) and will act upon the instructions from a senior management committee of the Company determined on a unanimous basis in relation to the voting and, prior to the vesting of the Shares to the relevant grantee of the share-based awards under the 2022 Plan, the disposition of the Shares. The Shares held by the ESOP Platform are reserved for share-based awards that the Company may grant in the future under the 2022 Plan. As of the date of this report, 2,500,000,000 Class B ordinary shares were reserved to 2022 Plan and no Class B ordinary shares have been issued under the 2022 Plan. Upon the issuance of Class B Ordinary Shares, the Company recorded the share capital of RMB 172 , with corresponding accounts to additional paid-in capital. |
LOSS PER SHARE
LOSS PER SHARE | 6 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | 11. LOSS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the periods indicated: For the Six Months Ended March 31, 2022 2023 Net loss ( 243,224 ) ( 43,325 ) Net loss per share—Basic and diluted ( 0.14 ) ( 0.00 ) Weighted average number of ordinary shares used in computing net loss per share 1,728,612,425 27,715,937,039 For the six months ended March 31, 2022 and 2023, weighted average ordinary shares included nil and 3,590,027 stock options. The 3,590,027 stock options were vest but unexercised as of March 31, 2023. The Company included the stock options because they are exercisable at RMB nil . For the six months ended March 31, 2022 and 2023, potential ordinary shares from assumed conversion of convertible notes into 364,641,420 and nil the Group’s ordinary shares, assumed exercise of share options of 34,200,000 and 37,690,027 , and warrants to purchase 14,349,000 and nil of the Group’s ordinary shares have not been reflected in the calculation of diluted net loss per share as their inclusion would have been anti-dilutive. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 12. INCOME TAXES The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the six months ended March 31, 2022 and 2023, the Company had no unrecognized tax benefits. Due to uncertainties surrounding future utilization, the Company estimates there will not be sufficient future income to realize the deferred tax assets for the subsidiaries. The Company maintains a full valuation allowance on its net deferred tax assets as of September 30, 2022 and March 31, 2023. The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. The Company will classify interest and penalties related to income tax matters, if any, in income tax expense. For the six months ended March 31, 2022 and 2023, the Company had a current tax benefit of RMB 3 and RMB nil , respectively. Uncertain tax positions The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than no t that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50 % likely of being realized upon settlement. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. The Company is subject to income taxes in the PRC. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000 . In the case of transfer pricing issues, the statute of limitation is ten years . There is no statute of limitation in the case of tax evasion. There were no uncertain tax positions as of March 31, 2023 and the Company does not believe that its unrecognized tax benefits will change over the next twelve months. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 13. RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. The following entities are considered to be related parties to the Group. The related parties mainly act as service providers and service recipients to the Group. The Group is not obligated to provide any type of financial support to these related parties. Related Party Relationship with the Group Wangxiancai Limited* An entity controlled by the legal representative and executive director of one of the subsidiaries Key Space (S) Pte Ltd (“Key Space”) An entity controlled by certain shareholders of the Group * Wangxiancai Limited was no longer a related party of the Company since June 30, 2022 when the Company disposed of the Deconsolidated VIE’s Subsidiaries. The Group entered into the following transactions with its related parties: As stated in Note 1, on October 26, 2021 and December 17, 2021, the Group transferred the equity interest in the Q&K Investment Consulting and Q&K HK, respectively, to Wangxiancai Limited for nominal consideration. For the six months ended March 31, 2022, the Group issued convertible notes in exchange for cash of $ 2,813 (RMB 17,832 ) to Key Space. Among the convertible notes issued in the six months ended March 31, 2022, $ 835 and $ 1,978 are subject to interest rate of 15 % per annum and 17 % per annum, respectively. For the six months ended March 31, 2022, the Group accrued interest expenses of RMB 26,870 on the convertible notes. As of September 30, 2022 and March 31, 2022, amounts due to related parties were RMB 4,831 and RMB 5,394 , respectively. The balance due to related parties represented borrowings from the related parties which were due within 12 months from borrowing. Details are as follows: As of September 30, As of March 31, 2022 2023 Key Space 4,065 4,065 Others 766 1,329 4,831 5,394 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES (a) Purchase Commitments As of March 31, 2023, the Group’s did no t have commitments related to leasehold improvements and installation of equipment. (b) Contingencies The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the Group’s audited consolidated financial statements for the years ended September 30, 2022 filed on February 15, 2022. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Group believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Group’s consolidated financial statements for the year ended September 30, 2022. The results of operations for the six months ended March 31, 2022 and 2023 are not necessarily indicative of the results for the full years. |
Going concern | Going concern The Group has been incurring losses from operations since its inception. Accumulated deficits amounted to RMB 3,558,667 and RMB 3,601,992 as of September 30, 2022 and March 31, 2023, respectively. Net cash used in operating activities were RMB 27,545 and RMB 25,478 for the six months ended March 31, 2022 and 2023, respectively. As of September 30, 2022 and March 31, 2023, current liabilities exceeded current assets by RMB 597,242 and RMB 848,038 , respectively. These factors raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Group is unable to continue as a going concern. The Group has adopted a defensive strategy after a prudent assessment of the broader macroeconomic downturn since COVID-19 by consolidating internal resources, further improving operating efficiencies and focusing on asset quality improvement rather than aggressive expansion. The Group’s number of rental units contracted as well as number of available rental units decreased by 48.5 % from March 31, 2022 to March 31, 2023, as the Group continued to optimize its rental asset portfolio. On the other hand, the Group’s total operating cost and expenses decreased by 56.2 % from RMB 553.3 million (US$ 87.3 million) inthe six months ended March 31, 2022 to RMB 242.4 million (US$ 35.3 million) in the six months ended March 31, 2023 and its net loss narrowed by 82.2 % from RMB 243.2 million (US$ 38.4 million) in the six months ended March 31, 2022 to RMB 43.3 million (US$ 6.3 million) in the six months ended March 31, 2023. The Group intends to meet the cash requirements for the next 12 months from the issuance date of this report through a combination of bank loans and short-term loan from certain third parties, issuance of ordinary shares or other equity-linked securities. In addition, the Group has continued to adopt the defensive strategy mentioned above and optimize its rental asset portfolio. The Group’s number of rental units contracted and available rental units decreased from 55,177 as of March 31, 2022 to 28,400 as of March 31, 2023 during the same period, whereas its loss from operation decreased from RMB 189.0 million in the six months ended March 31, 2022 to RMB 42.7 million in the six months ended March 31, 2023. The Group will also focus on the follow activity: • On October 26, 2022, the Company’s Form F-3 to offer up to a total amount of $ 300 million was declared effective. The Company plans to raise funds under the Form F-3 to support the Company’s operations. The Management plan cannot alleviate the substantial doubt of the Group’s ability to continue as a going concern. There can be no assurance that the Group will be successful in achieving its strategic plans, that the Group's future capital raises will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or with acceptable terms, if at all. If the Group is unable to raise sufficient financing or events or circumstances occur such that the Group is not able to achieve ideal optimization of its asset portfolio, the Group will be required to reduce certain discretionary spending, alter or scale back research and development programs, or be unable to fund capital expenditures, which would have a material adverse effect on the Group's financial position, results of operations, cash flows, and ability to achieve its intended business objectives. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the unaudited condensed consolidated financial statements have been prepared on a basis that assumes the Group will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. |
Financial statement amounts and balances of the VIE and its subsidiaries | Financial statement amounts and balances of the VIE and its subsidiaries The following financial statement amounts and balances of the Q&K HK, Q&K Investment Consulting and Q&K E-Commerce (collectively "VIE entities") and their subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The revenues, net loss and cash flows for the six months ended March 31, 2022 represented the amounts of Q&K HK and Q&K Investment Consulting for the period from dates of equity transfer through March 31, 2022, and the amounts of the amounts of Q&K E-Commerce and its subsidiaries for the six months ended March 31, 2022. The revenues, net loss and cash flows for the six months ended March 31, 2023 represented the amounts of VIE entities for the six months ended March 31, 2023. As of September 30, As of March 31, 2022 2023 RMB RMB USD ASSETS Cash and cash equivalents 62 63 9 Advances to suppliers 6,131 6,136 893 Other current assets 2,572 2,572 375 Other assets 98 98 14 Total assets 8,863 8,869 1,291 LIABILITIES Accounts payable 34 34 5 Deferred revenue 16 16 2 Short-term debt 13,000 13,000 1,893 Accrued expenses and other current liabilities 67,908 68,124 9,920 Total liabilities 80,958 81,174 11,820 For the Six Months Ended March 31, 2022 2023 RMB RMB USD Net revenues 1,621 — — Net loss ( 41,909 ) ( 221 ) ( 32 ) Net cash used in operating activities ( 10,773 ) 1 0 Net cash provided by investing activities — — — Net cash provided by financing activities — — — The consolidated VIE entities and their subsidiaries contributed 0.4 % and nil of the Group’s consolidated revenues for the six months ended March 31, 2022 and 2023. As of September 30, 2022 and March 31, 2023, the consolidated VIE entities and their subsidiaries accounted for an aggregate of 9 % and 2 %, respectively, of the Group’s consolidated total assets, and 12 % and 7 %, respectively, of the Group’s consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE entities. However, the Company has provided and will continue to provide financial support to the VIE considering the business requirements of the VIE entities, as well as the Company’s own business objectives in the future. There are no assets held in the VIE entities and its subsidiaries that can be used only to settle obligations of the VIE entities and their subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE entities and their subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE entities do not have recourse to the general credit of the Group for any of the liabilities of the VIE entities. Relevant PRC laws and regulations restrict the VIE entities from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Group in the form of loans and advances or cash dividends. |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures 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 Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. For the six months ended March 31, 2022 and 2023, the Group recognized impairment of RMB 100,156 and RMB 10,474 against trademark and apartment rental contracts ( See Note 5 – Intangible assets ), respectively. |
Revenue Recognition | Revenue Recognition The Group sources apartments from landlords and convert them into standardized furnished rooms to lease to tenants seeking affordable residences in China. Revenues are primarily derived from rental service and value-added services. Rental Service Revenues Rental service revenues are primarily derived from the lease payments from tenants and are recorded net of tax. The Group typically enters into 26-month leases with tenants, a majority of which have a lock-in period of 12 months or shorter. The lock-in period represents the term during which termination will result in the forfeiture of deposit, which is typically one or two months’ rent. The Group determines that the lock-in period is the lease term under ASC 840. When tenants terminate their leases, the Group returns unused portions of any prepaid rentals to the tenant within a prescribed period of time. Deposit can only be returned for termination after the lock-in period. Monthly rent is fixed throughout the lock-in period and there is no rent-free period or rent escalations during the period. The Group determines all lease arrangements with tenants are operating leases since the benefits and risks incidental to ownership remains with the Group. Revenue is recognized on a straight-line basis starting from the commencement date stated in the lease agreements. Value-added Services and Others Value-added services and others primarily consist of fees received from the tenants from provision of internet connection and utility services as part of the lease agreement. The service fees are fixed in the agreements and recognized on a monthly basis during the period of the lease term. The service fee are recognized on a gross basis as the Group has latitude in determining prices and bear inventory risks. |
Operating lease | Operating lease The Company adopted the ASU 2016-02, Leases (Topic 842) on October 1, 2022 using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases apartments from landlords, which are classified as operating leases in accordance with Topic 842. Operating leases are required to record in the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease exemption as the lease terms are 12 months or less. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. There was no impairment for right-of-use lease assets as of March 31, 2023 |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of significant subsidiaries and VIE | As of March 31, 2023, the Group’s significant subsidiaries and VIE: Entity Date of Place of Percentage of Principal Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding Fenglinju (China) Hong Kong October 21, 2021 Hong Kong 100 % Holding Haoju (Shanghai) Artificial May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment June 19, 2020 PRC 100 % Operating VIE: QingKe (China) Limited July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., April 2, 2015 PRC 100 % Holding and Operating Shanghai Qingke E-Commerce Co., August 2, 2013 PRC 100 % Holding and Operating |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of financial statement amounts and balances of the VIE and its subsidiaries | The following financial statement amounts and balances of the Q&K HK, Q&K Investment Consulting and Q&K E-Commerce (collectively "VIE entities") and their subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The revenues, net loss and cash flows for the six months ended March 31, 2022 represented the amounts of Q&K HK and Q&K Investment Consulting for the period from dates of equity transfer through March 31, 2022, and the amounts of the amounts of Q&K E-Commerce and its subsidiaries for the six months ended March 31, 2022. The revenues, net loss and cash flows for the six months ended March 31, 2023 represented the amounts of VIE entities for the six months ended March 31, 2023. As of September 30, As of March 31, 2022 2023 RMB RMB USD ASSETS Cash and cash equivalents 62 63 9 Advances to suppliers 6,131 6,136 893 Other current assets 2,572 2,572 375 Other assets 98 98 14 Total assets 8,863 8,869 1,291 LIABILITIES Accounts payable 34 34 5 Deferred revenue 16 16 2 Short-term debt 13,000 13,000 1,893 Accrued expenses and other current liabilities 67,908 68,124 9,920 Total liabilities 80,958 81,174 11,820 For the Six Months Ended March 31, 2022 2023 RMB RMB USD Net revenues 1,621 — — Net loss ( 41,909 ) ( 221 ) ( 32 ) Net cash used in operating activities ( 10,773 ) 1 0 Net cash provided by investing activities — — — Net cash provided by financing activities — — — |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of other current assets | Other current assets consist of the following: As of September 30, As of March 31, 2022 2023 Due from a service provider (1) 36,100 37,552 Deposit for share settlement (2) 21,341 20,602 Due from shareholders (3) — 13,910 Others 1,588 1,906 59,029 73,970 (1) Upon asset acquisition with Beautiful House, the Group engaged a third party service provider to provide apartment operation services to the Group. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House. To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and loans are repayable on demand. (2) Upon settle payables due to Beautiful House arising from asset acquisition, the Group made a deposit of RMB 20,602 (US$ 3,000 ) to Beautiful House, which is expected to get repaid upon share settlement. (3) During the six months ended March 31, 2023, the Company paid RMB 13,910 on behalf of certain shareholders who owned less than 5 % of outstanding shares of the Company, for transfer of their ordinary shares into ADS which could be traded in the open market. The balance was repayable on demand. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment, net consist of the following: As of September 30, As of March 31, 2022 2023 Cost: Vehicle 2,269 2,269 Office furniture, fixtures and equipment 922 922 3,191 3,191 Less: Accumulated depreciation ( 2,691 ) ( 2,849 ) 500 342 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible assets, net as follows | Intangible assets, net consist of the following: As of September 30, As of March 31, 2022 2023 Cost: Apartment rental contracts 55,967 3,001 Trademarks 16,294 — 72,261 3,001 Less: Accumulated amortization ( 58,786 ) ( 3,001 ) 13,475 — |
SHORT-TERM DEBT (Table)
SHORT-TERM DEBT (Table) | 6 Months Ended |
Mar. 31, 2023 | |
Short-Term Debt [Abstract] | |
Summary of short-term debt | The short-term debts were as follows: As of September 30, As of March 31, 2022 2023 Short-term bank borrowings 103,552 103,552 Other short-term payable (1) 6,545 32,072 110,097 135,624 (1) During the six months ended March 31, 2023, the Company entered into loan agreements with certain third parties to borrow an aggregation of RMB 25,527 (equivalent of US$ 3,750 ). The loans bore an interest rate of 3.85 % per annum and payable in twelve months. |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary Of Operating Lease Assets and Liabilities Recorded on Consolidated Balance Sheets And Other Information | The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets. As of September 30, As of March 31, 2022 2023 Right of use assets — 417,556 Operating lease liabilities, current — 228,655 Operating lease liabilities, noncurrent — 188,901 Total operating lease liabilities — 417,556 Other information about the Company’s leases is as follows: For the Six Months Ended March 31, 2022 2023 Weighted average remaining lease term (years) — 2.36 Weighted average discount rate — 4.47 % |
Summary of Schedule, by Years, of Maturities of Lease Liabilities | The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2023: March 31, 2023 For the six months ending September 30, 2023 136,507 For the year ending September 30, 2024 175,537 For the year ending September 30, 2025 72,950 For the year ending September 30, 2026 26,765 For the year ending September 30, 2027 14,500 For the year ending September 30, 2028 and thereafter 17,968 Total lease payments 444,227 Less: Imputed interest ( 26,671 ) Present value of lease liabilities 417,556 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Table) | 6 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | As of September 30, As of March 31, 2022 2023 Tenant deposits 5,184 21,432 Other tax payable 63,619 75,600 Interest payable 1,680 2,120 Accrued payroll and welfare 3,999 1,538 Others 7,167 3,180 81,649 103,870 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of assumptions used to estimate fair values of share options granted | The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented: April 2016 October 2016 July 2017 Risk-free rate of return 3.18 % 3.18 % 3.21 % Contractual life of option 10 years 10 years 8.4 years Estimated volatility rate 37 % 37 % 35 % Expected dividend yield 0 % 0 % 0 % Fair value of underlying ordinary US $ 0.03 US $ 0.04 US $ 0.05 |
Summary of total share-based compensation expenses | For the six months ended March 31, 2022 and 2023, the total share-based compensation expenses were comprised of the following: For the Six Months Ended March 31, 2022 2023 Selling and marketing expenses 2 12 General and administrative expenses 4 2,273 Research and development expenses 393 22 399 2,307 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the periods indicated: For the Six Months Ended March 31, 2022 2023 Net loss ( 243,224 ) ( 43,325 ) Net loss per share—Basic and diluted ( 0.14 ) ( 0.00 ) Weighted average number of ordinary shares used in computing net loss per share 1,728,612,425 27,715,937,039 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Summary of balance due to related parties | The balance due to related parties represented borrowings from the related parties which were due within 12 months from borrowing. Details are as follows: As of September 30, As of March 31, 2022 2023 Key Space 4,065 4,065 Others 766 1,329 4,831 5,394 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Mar. 07, 2022 | |
Operating revenue | ¥ 199,670 | $ 29,075 | ¥ 364,214 | |||
Net loss | 43,325 | ¥ 243,224 | ||||
Accumulated deficits | ¥ 3,601,992 | $ 524,492 | ¥ 3,558,667 | |||
Class A ordinary shares [Member] | ||||||
Number of common shares for each unit of american depository receipt | 150 | |||||
ADS [Member] | ||||||
Reverse ADS split description | Effective on March 7, 2022, the Group changed the ratio of the American depositary shares (“ADSs”) representing its Class A ordinary shares from one (1) ADS representing thirty (30) Class A ordinary share to one (1) ADS representing one hundred and fifty (150) Class A ordinary shares. For the ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split. There will be no change to the Group’s Class A ordinary shares. The exchange of every five (5) then-held (old) ADSs for one (1) new ADS will occur automatically with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank, in each case as of the effective date for the ADS ratio change. No fractional new ADSs will be issued in connection with the change in the ADS ratio. | Effective on March 7, 2022, the Group changed the ratio of the American depositary shares (“ADSs”) representing its Class A ordinary shares from one (1) ADS representing thirty (30) Class A ordinary share to one (1) ADS representing one hundred and fifty (150) Class A ordinary shares. For the ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split. There will be no change to the Group’s Class A ordinary shares. The exchange of every five (5) then-held (old) ADSs for one (1) new ADS will occur automatically with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank, in each case as of the effective date for the ADS ratio change. No fractional new ADSs will be issued in connection with the change in the ADS ratio. | ||||
ADS [Member] | Class A ordinary shares [Member] | ||||||
Number of common shares for each unit of american depository receipt | 30 |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of significant subsidiaries and VIE (Detail) | 6 Months Ended |
Mar. 31, 2023 | |
QK365.com INC. (BVI) | Subsidiaries | |
Date of incorporation | Sep. 29, 2014 |
Place of incorporation | BVI |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding |
Fenglinju (China) Hong Kong Limited ("Fenglinju") | Subsidiaries | |
Date of incorporation | Oct. 21, 2021 |
Place of incorporation | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding |
Haoju(shanghai) Artificial Intelligence Technology Co., Ltd (formerly known as "Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd.") ("Q&K AI') [Member] | Subsidiaries | |
Date of incorporation | May 13, 2019 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding and Operating |
Chengdu Liwu Apartment Management Co., Ltd | Subsidiaries | |
Date of incorporation | Jun. 19, 2020 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Operating |
QingKe (China) Limited ("Q&K HK") [Member] | Variable Interest Entity [Member] | |
Date of incorporation | Jul. 07, 2014 |
Place of incorporation | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding |
Q&K Investment Consulting Co., Ltd. ("Q&K Investment Consulting") [Member] | Variable Interest Entity [Member] | |
Date of incorporation | Apr. 02, 2015 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding and Operating |
Shanghai Qingke E-Commerce Co., Ltd. [Member] | Variable Interest Entity [Member] | |
Date of incorporation | Aug. 02, 2013 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100% |
Principal activities | Holding and Operating |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Oct. 26, 2022 CNY (¥) | Mar. 31, 2023 CNY (¥) RentalContract RentalUnit | Mar. 31, 2023 USD ($) RentalContract | Mar. 31, 2022 CNY (¥) RentalUnit | Mar. 31, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Mar. 31, 2023 USD ($) RentalUnit | |
Accumulated deficits | ¥ 3,601,992,000 | ¥ 3,558,667,000 | $ 524,492 | ||||
Net Cash Provided by (Used in) Operating Activities | (25,478,000) | $ (3,713) | ¥ (27,545,000) | ||||
Working capital | 848,038,000 | 597,242,000 | |||||
Maximum amount of offering | ¥ 300,000,000 | ||||||
Impairment loss | 10,474,000 | $ 1,525 | 100,156,000 | ||||
Property and equipment, net | 342,000 | 500,000 | $ 50 | ||||
Property and equipment, accumulated depreciation | ¥ 2,849,000 | ¥ 2,691,000 | |||||
Lease Option to Extend | The Group leases apartments from landlords usually for a period of five to six years which may be extended for an additional three or two years at the discretion of the landlords. | The Group leases apartments from landlords usually for a period of five to six years which may be extended for an additional three or two years at the discretion of the landlords. | |||||
Fixed rent, lock in period | 3 years | 3 years | |||||
Annual, non-compounding increase for the rest of the lease period | 5% | 5% | |||||
Tax benefit likely of being realized up on settlement percentage | 0% | 0% | |||||
Significant unrecognized uncertain tax positions | ¥ 0 | 0 | |||||
Operating lease, Right of use assets | 417,556,000 | $ 60,801 | |||||
Operating lease liabilities | ¥ 417,556,000 | ||||||
Number of available rental units decreased percentage | 48.50% | 48.50% | |||||
Total operating costs and expenses | ¥ 242,357,000 | $ 35,291 | 553,262,000 | ||||
Net loss | (43,325,000) | (6,309) | (243,224,000) | ||||
Loss from operations | (42,687,000) | $ (6,216) | ¥ (189,048,000) | ||||
Impairment of right-of-use lease assets | ¥ 0 | ||||||
Fair Value, Inputs, Level 3 [Member] | Apartment Rental Contracts [Member] | |||||||
Business combination revenue growth rate for valuation of trademarks acquired | 0% | 0% | 0% | 0% | |||
Business combination discount rate for valuation of trademarks acquired | 11% | 11% | 11% | ||||
Business combination increase of unit rental fee | 0% | 0% | |||||
Rental Contracts [Member] | |||||||
Number of rental units contracted and available | RentalUnit | 28,400 | 55,177 | 28,400 | ||||
Loss from operations | ¥ (42,700,000) | ¥ (189,000,000) | |||||
Great Alliance Co living Limited And Affiliates [Member] | |||||||
Number of Businesses Acquired | RentalContract | 72,000 | 72,000 | |||||
Variable Interest Entity | |||||||
Net Cash Provided by (Used in) Operating Activities | ¥ 1,000 | $ 0 | ¥ (10,773,000) | ||||
Percentage of consolidated revenues | 0% | 0% | 0.40% | 0.40% | |||
Percentage of consolidated assets | 2% | 2% | 9% | ||||
Percentage of consolidated liabilities | 7% | 7% | 12% | ||||
Net loss | ¥ (221,000) | $ (32) | ¥ (41,909,000) | ||||
Shanghai Qingke E-Commerce Co., Ltd. | Variable Interest Entity | |||||||
Equity interest held | 100% | 100% | |||||
Maximum | |||||||
Rent free period with landlords | 2 months | 2 months | |||||
Minimum | |||||||
Rent free period with landlords | 1 month | 1 month | |||||
Tax benefit likely of being realized up on settlement percentage | 50% | 50% | |||||
COVID-19 [Member] | |||||||
Operating costs and expenses decrease percentage | 56.20% | 56.20% | |||||
Total operating costs and expenses | ¥ 242,400,000 | $ 35,300 | 553,300,000 | $ 87,300 | |||
Decrease in net loss percentange | 82.20% | 82.20% | |||||
Net loss | ¥ 43,300,000 | $ 6,300 | ¥ 243,200,000 | $ 38,400 |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of financial statement amounts and balances of the VIE and its subsidiaries (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | |
ASSETS | |||||
Cash and cash equivalents | ¥ 2,276 | $ 331 | ¥ 2,772 | ||
Restricted cash | 106 | 15 | 106 | ||
Accounts receivable, net | 2,301 | 335 | 752 | ||
Advances to suppliers | 8,527 | 1,242 | 8,501 | ||
Other current assets | 73,970 | 10,771 | 59,029 | ||
Property and equipment, net | 342 | 50 | 500 | ||
Intangible assets, net | 13,475 | ||||
Other assets | 10,321 | 1,503 | 10,405 | ||
Total assets | 515,399 | 75,048 | 95,540 | ||
LIABILITIES | |||||
Accounts payable | 156,794 | 22,831 | 122,667 | ||
Deferred revenue | 100,074 | 14,572 | 129,930 | ||
Short-term debt | 135,624 | 19,748 | 110,097 | ||
Rental instalment loans | 15,756 | 2,294 | 15,756 | ||
Deposits from tenants | 29,723 | 4,328 | 38,439 | ||
Accrued expenses and other current liabilities | 103,870 | 15,126 | 81,649 | ||
Total liabilities | 1,124,119 | 163,685 | 668,402 | ||
Net revenues | 199,670 | $ 29,075 | ¥ 364,214 | ||
Net loss | (43,325) | (6,309) | (243,224) | ||
Net cash used in operating activities | (25,478) | (3,713) | (27,545) | ||
Net cash (used in) provided by financing activities | 25,527 | 3,717 | 16,532 | ||
Variable Interest Entity | |||||
ASSETS | |||||
Cash and cash equivalents | 63 | 9 | 62 | ||
Advances to suppliers | 6,136 | 893 | 6,131 | ||
Other current assets | 2,572 | 375 | 2,572 | ||
Other assets | 98 | 14 | 98 | ||
Total assets | 8,869 | 1,291 | 8,863 | ||
LIABILITIES | |||||
Accounts payable | 34 | 5 | 34 | ||
Deferred revenue | 16 | 2 | 16 | ||
Short-term debt | 13,000 | 1,893 | 13,000 | ||
Accrued expenses and other current liabilities | 68,124 | 9,920 | 67,908 | ||
Total liabilities | 81,174 | $ 11,820 | ¥ 80,958 | ||
Net revenues | 1,621 | ||||
Net loss | (221) | (32) | (41,909) | ||
Net cash used in operating activities | ¥ 1 | $ 0 | ¥ (10,773) |
OTHER CURRENT ASSETS - Summary
OTHER CURRENT ASSETS - Summary of other current assets (Detail) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
Other Assets [Abstract] | |||
Due from a service provider | ¥ 37,552 | ¥ 36,100 | |
Deposit for share settlement | 20,602 | $ 3,000 | 21,341 |
Due from shareholders | 13,910 | ||
Others | 1,906 | 1,588 | |
Total | ¥ 73,970 | $ 10,771 | ¥ 59,029 |
OTHER CURRENT ASSETS - Summar_2
OTHER CURRENT ASSETS - Summary of other current assets (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
Other Assets [Abstract] | |||
Deposit for share settlement | ¥ 20,602 | $ 3,000 | ¥ 21,341 |
Due from shareholders | ¥ 13,910 | ||
Percentage of outstanding shares owned | 5% | 5% |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Summary of property and equipment, net (Detail) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | ¥ 3,191 | ¥ 3,191 | |
Property and equipment, net | 342 | $ 50 | 500 |
Less: Accumulated depreciation | (2,849) | (2,691) | |
Vehicle | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 2,269 | 2,269 | |
Office furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | ¥ 922 | ¥ 922 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | |||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expenses | ¥ 158 | ¥ 474 | ||
Property and equipment | ¥ 342 | $ 50 | ¥ 500 |
INTANGIBLE ASSETS, NET - Summar
INTANGIBLE ASSETS, NET - Summary of Intangible assets, net (Detail) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Schedule Of Intangible Asset [Line Items] | ||
Cost | ¥ 3,001 | ¥ 72,261 |
Less: Accumulated amortization | (3,001) | (58,786) |
Intangible assets, net | 13,475 | |
Apartment rental contracts [Member] | ||
Schedule Of Intangible Asset [Line Items] | ||
Cost | ¥ 3,001 | 55,967 |
Trademarks [Member] | ||
Schedule Of Intangible Asset [Line Items] | ||
Cost | ¥ 16,294 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Detail) ¥ in Thousands | 6 Months Ended | |
Mar. 31, 2023 CNY (¥) RentalContract | Mar. 31, 2022 CNY (¥) | |
Schedule Of Intangible Asset [Line Items] | ||
Amortization of Intangible Assets | ¥ 3,001 | ¥ 21,967 |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset Impairment Charges | Asset Impairment Charges |
Impairment loss of intangible assets | ¥ 10,474 | ¥ 100,156 |
Apartment rental contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Schedule Of Intangible Asset [Line Items] | ||
Impairment loss of intangible assets | ¥ 10,474 | ¥ 29,550 |
Business combination revenue growth rate for valuation of trademarks acquired | 0% | 0% |
Business combination increase of unit rental fee | 0% | |
Business combination discount rate for valuation of trademarks acquired | 11% | 11% |
Apartment rental agreements | ¥ 29,550 | |
Great Alliance Coliving Limited and Affiliates [Member] | ||
Schedule Of Intangible Asset [Line Items] | ||
Number of businesses acquired | RentalContract | 72,000 |
SHORT-TERM DEBT - Summary of sh
SHORT-TERM DEBT - Summary of short-term debt (Detail) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | |
Short-Term Debt [Abstract] | ||||
Short-term bank borrowings | ¥ 103,552 | ¥ 103,552 | ||
Other short-term payable | [1] | 32,072 | 6,545 | |
Short-term debt | ¥ 135,624 | $ 19,748 | ¥ 110,097 | |
[1] During the six months ended March 31, 2023, the Company entered into loan agreements with certain third parties to borrow an aggregation of RMB 25,527 (equivalent of US$ 3,750 ). The loans bore an interest rate of 3.85 % per annum and payable in twelve months. |
SHORT-TERM DEBT - Summary of _2
SHORT-TERM DEBT - Summary of short-term debt (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | |
Short-Term Debt [Abstract] | ||
Proceeds from borrowings | ¥ 25,527 | $ 3,750 |
Debt annual interest rate | 3.85% | 3.85% |
DEBT - Summary of short-term an
DEBT - Summary of short-term and long-term debt (Detail) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | |
Short-term debt: | ||||
Short-term bank borrowings | ¥ 103,552 | ¥ 103,552 | ||
Other short-term payable | [1] | 32,072 | 6,545 | |
Short-term debt | ¥ 135,624 | $ 19,748 | ¥ 110,097 | |
[1] During the six months ended March 31, 2023, the Company entered into loan agreements with certain third parties to borrow an aggregation of RMB 25,527 (equivalent of US$ 3,750 ). The loans bore an interest rate of 3.85 % per annum and payable in twelve months. |
DEBT - Additional Information (
DEBT - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||
Debt annual interest rate | 3.85% | 3.85% |
Proceeds from borrowings | ¥ 25,527 | $ 3,750 |
CONVERTIBLE NOTE, NET - Additio
CONVERTIBLE NOTE, NET - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | |||||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 | Jul. 31, 2017 $ / shares | Oct. 31, 2016 $ / shares | Apr. 30, 2016 $ / shares | |
Debt Instrument [Line Items] | ||||||
Debt annual interest rate | 3.85% | |||||
Share price | $ / shares | $ 0.05 | $ 0.04 | $ 0.03 | |||
Proceeds from convertible notes | ¥ 17,832 | $ 2,813 | ||||
Adjustments to additional paid in capital warrants issued | ¥ | ¥ 1,420 |
OPERATING LEASE - Additional In
OPERATING LEASE - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Lease option to extend | The Group leases apartments from landlords usually for a period of five to six years which may be extended for an additional three or two years at the discretion of the landlords. | |
Fixed rent, lock in period | 3 years | |
Annual, non-compounding increase for the rest of the lease period | 5% | |
Operating lease expenses | ¥ 172,046 | ¥ 300,668 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 5 years | |
Rent free period with landlords | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 6 years | |
Rent free period with landlords | 2 months |
OPERATING LEASE - Summary of Op
OPERATING LEASE - Summary of Operating Lease Assets and Liabilities (Detail) - Mar. 31, 2023 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Assets and Liabilities, Lessee [Abstract] | ||
Right of use assets | ¥ 417,556 | $ 60,801 |
Operating lease liabilities, current | 228,655 | 33,295 |
Operating lease liabilities, noncurrent | 188,901 | $ 27,506 |
Present value of lease liabilities | ¥ 417,556 |
OPERATING LEASE - Summary of Ot
OPERATING LEASE - Summary of Other Information (Detail) | Mar. 31, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 2 years 4 months 9 days |
Weighted average discount rate | 4.47% |
OPERATING LEASE - Summary of Sc
OPERATING LEASE - Summary of Schedule, by Years, of Maturities of Lease Liabilities (Detail) ¥ in Thousands | Mar. 31, 2023 CNY (¥) |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |
For the six months ending September 30, 2023 | ¥ 136,507 |
For the year ending September 30, 2024 | 175,537 |
For the year ending September 30, 2025 | 72,950 |
For the year ending September 30, 2026 | 26,765 |
For the year ending September 30, 2027 | 14,500 |
For the year ending September 30, 2028 and thereafter | 17,968 |
Total lease payments | 444,227 |
Less: Imputed interest | (26,671) |
Present value of lease liabilities | ¥ 417,556 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule Of Accounts Payable And Accrued Liabilities (Detail) ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
Accrued Liabilities, Current [Abstract] | |||
Tenant deposits | ¥ 21,432 | ¥ 5,184 | |
Other tax payable | 75,600 | 63,619 | |
Interest payable | 2,120 | 1,680 | |
Accrued payroll and welfare | 1,538 | 3,999 | |
Others | 3,180 | 7,167 | |
Total | ¥ 103,870 | $ 15,126 | ¥ 81,649 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Aug. 03, 2023 shares | Aug. 03, 2022 shares | Oct. 18, 2016 $ / shares shares | Oct. 18, 2016 ¥ / shares shares | Jun. 30, 2022 $ / shares shares | Jun. 30, 2022 ¥ / shares shares | Jul. 31, 2017 $ / shares shares | Jul. 31, 2017 ¥ / shares shares | Mar. 31, 2023 $ / shares shares | Mar. 31, 2023 CNY (¥) shares | Mar. 31, 2022 CNY (¥) shares | Sep. 30, 2022 CNY (¥) shares | Jun. 24, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share options granted | 26,860,000 | 26,860,000 | |||||||||||
Compensation expenses for shares granted | ¥ | ¥ 2,307,000 | ¥ 399,000 | |||||||||||
Stock options exercisable | 37,690,027 | 37,690,027 | |||||||||||
Mr. Qu, Chief Executive Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share options granted | 72,000,000 | 72,000,000 | |||||||||||
Share options granted, exercise price per share | ¥ / shares | ¥ 0 | ||||||||||||
2019 Share Incentive Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of maximum number of shares issued | 10% | 10% | |||||||||||
Stock Option A | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of Options - Vested or expected to vest | 10,250,000 | 10,250,000 | 10,250,000 | ||||||||||
Stock Option A | Maximum | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of total converted ordinary shares each year after the exercise date subject to restriction from transferring | 25% | ||||||||||||
Stock Option A | Management, Employees and Non employees | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share options granted, exercise price per share | (per share) | $ 0.31 | ¥ 2 | |||||||||||
Share options granted, vesting percentage on the first and second anniversary after the IPO date | 50% | ||||||||||||
Stock Option B | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share based compensation stock options outstanding number | 23,850,000 | 23,850,000 | |||||||||||
Share based compensation stock options outstanding weighted average intrinsic value | 0 | ||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 0 | ||||||||||||
Stock Option B | Management And Employees | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share options granted | 43,140,000 | 43,140,000 | |||||||||||
Share options granted, exercise price per share | (per share) | $ 0.31 | ¥ 2 | |||||||||||
Share-based Payment Arrangement, Option | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share options vested | 3,590,000 | ||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 399,000 | ||||||||||||
Unrecognized compensation expenses | ¥ | ¥ 69,000 | ||||||||||||
Share-based Payment Arrangement, Option | Mr. Qu, Chief Executive Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock options, grant date fair value | $ / shares | $ 1.4537 | ||||||||||||
Share-based Payment Arrangement, Option | Mr. Sun, Chief Financial Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share options granted | 50,360,000 | 50,360,000 | |||||||||||
Stock options, grant date fair value | $ / shares | $ 1.4537 | ||||||||||||
Share options granted, exercise price per share | ¥ / shares | ¥ 0 | ||||||||||||
Share options vested | 3,590,000 | 3,590,000 | |||||||||||
Exercise of share-based compensation, shares | 43,180,000 | 43,180,000 | |||||||||||
Share-based Payment Arrangement, Option | 2022 RSU | Mr. Sun, Chief Financial Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted share units, issued | 0 | ||||||||||||
Class B Ordinary Shares | Stock Option A | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock options exercisable | 10,250,000 | 10,250,000 | |||||||||||
Class A Ordinary Shares | Stock Option B | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock options exercisable | 23,850,000 | 23,850,000 | |||||||||||
Yijia Inc | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares reserved | 86,000,000 | 86,000,000 | |||||||||||
Yijia Inc | Class B Ordinary Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Ordinary shares held and reserved | 75,200,000 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of assumptions used to estimate fair values of share options granted (Detail) - $ / shares | 1 Months Ended | ||
Jul. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2016 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free rate of return | 3.21% | 3.18% | 3.18% |
Contractual life of option | 8 years 4 months 24 days | 10 years | 10 years |
Estimated volatility rate | 35% | 37% | 37% |
Expected dividend yield | 0% | 0% | 0% |
Fair value of underlying ordinary shares | $ 0.05 | $ 0.04 | $ 0.03 |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of total share-based compensation expenses (Detail) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expenses for shares granted | ¥ 2,307 | ¥ 399 |
Selling and marketing expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expenses for shares granted | 12 | 2 |
General and administrative expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expenses for shares granted | 2,273 | 4 |
Research and development expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expenses for shares granted | ¥ 22 | ¥ 393 |
EQUITY - Additional Information
EQUITY - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 6 Months Ended | ||
Nov. 18, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | |
Class of Stock [Line Items] | |||
Percentage of outstanding share capital | 8.80% | ||
Percentage of voting power | 49.10% | ||
Additional Paid-in Capital [Member] | |||
Class of Stock [Line Items] | |||
Issuance of class B ordinary shares | ¥ (172) | ||
Common Class B [Member] | |||
Class of Stock [Line Items] | |||
Common stock, voting rights | ten votes per share | ||
Common Stock, Shares, Issued | 2,500,000,000 | 0 | |
Common Class B [Member] | Additional Paid-in Capital [Member] | |||
Class of Stock [Line Items] | |||
Issuance of class B ordinary shares | ¥ 172 | ||
Common Class B [Member] | 2022 Plan [Member] | |||
Class of Stock [Line Items] | |||
Maximum number of shares available for issuance under the 2022 plan | 2,500,000,000 | ||
Shares reserved to 2022 plan | 2,500,000,000 | ||
Common Stock, Shares, Issued | 0 | ||
Common Class A [Member] | |||
Class of Stock [Line Items] | |||
Common stock, voting rights | one vote per share | ||
Common Stock, Shares, Issued | 25,878,920,464 | 25,878,920,464 |
LOSS PER SHARE - Summary of com
LOSS PER SHARE - Summary of computation of basic and diluted earnings per share (Detail) ¥ / shares in Units, ¥ in Thousands | 6 Months Ended | ||
Mar. 31, 2023 $ / shares | Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | |
Numerator: | |||
Net loss | ¥ | ¥ (43,325) | ¥ (243,224) | |
Denominator: | |||
Weighted average number of ordinary shares used in computing net loss per share - Basic | 27,715,937,039 | 1,728,612,425 | |
Weighted average number of ordinary shares used in computing net loss per share - diluted | 27,715,937,039 | 1,728,612,425 | |
Net loss per share-Basic | (per share) | $ 0 | ¥ 0 | ¥ (0.14) |
Net loss per share - diluted | (per share) | $ 0 | ¥ 0 | ¥ (0.14) |
LOSS PER SHARE - Additional Inf
LOSS PER SHARE - Additional Information (Detail) - ¥ / shares | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Weighted average ordinary shares outstanding---basic | 27,715,937,039 | 1,728,612,425 |
Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of EPS | 0 | 364,641,420 |
Share-based Payment Arrangement, Option [Member] | ||
Weighted average ordinary shares outstanding---basic | 3,590,027 | 0 |
Share options vested | 3,590,027 | |
Exercise price of stock options exercisable | ¥ 0 | |
Antidilutive Securities Excluded From Computation Of EPS | 37,690,027 | 34,200,000 |
Convertible Bonds And Warrants Attached [Member] | ||
Antidilutive Securities Excluded From Computation Of EPS | 0 | 14,349,000 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Taxes [Line Items] | ||
Unrecognized tax benefits | ¥ 0 | ¥ 0 |
Current tax benefit | ¥ 0 | ¥ 3 |
Tax benefit likely of being realized up on settlement percentage | 0% | |
Minimum [Member] | ||
Income Taxes [Line Items] | ||
Tax benefit likely of being realized up on settlement percentage | 50% | |
PRC | ||
Income Taxes [Line Items] | ||
Special circumstance for underpayment of income tax liability amount | ¥ 100,000 | |
Underpayment of Income taxes statue of limitations extended under special circumstances | 5 years | |
Statute of limitations in case of transfer pricing related adjustment period | 10 years | |
Statue of limitations in Case of tax evasion | ¥ 0 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 6 Months Ended | |||||
Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | ||||||
Proceeds from convertible notes | ¥ 17,832 | $ 2,813 | ||||
Debt annual interest rate | 3.85% | 3.85% | ||||
Accrued interest expenses on convertible debt | ¥ | 26,870 | |||||
Related Party [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Amounts due to related parties | ¥ 5,394 | ¥ 5,394 | $ 785 | ¥ 4,831 | ||
Convertible Debt [Member] | March Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt annual interest rate | 15% | 15% | ||||
Convertible Debt [Member] | March Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | Series 1 note [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument aggregate principal amount | $ 835 | |||||
Convertible Debt [Member] | March Convertible Notes [Member] | Interest Of Seventeen Percent [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument aggregate principal amount | $ 1,978 | |||||
Debt annual interest rate | 17% | 17% |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Summary of balance due to related parties (Detail) - Related Party [Member] ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Mar. 31, 2022 CNY (¥) |
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | ¥ 5,394 | $ 785 | ¥ 4,831 | ¥ 5,394 |
Key Space [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | 4,065 | 4,065 | ||
Others [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | ¥ 1,329 | ¥ 766 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) | Mar. 31, 2023 CNY (¥) |
Leasehold improvements and installation of equipment | |
Commitments And Contingencies [Line Items] | |
Purchase commitments | ¥ 0 |