Cover Page
Cover Page | 12 Months Ended |
Sep. 30, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Q&K International Group Limited |
Entity Central Index Key | 0001769256 |
Current Fiscal Year End Date | --09-30 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 1,436,010,850 |
Document Accounting Standard | U.S. GAAP |
Entity Address, Address Line One | Suite 1607, Building A |
Entity Address, Address Line Two | No.596 Middle Longhua Road |
Entity Address, Address Line Three | Xuhui District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Document Annual Report | true |
Document Transition Report | false |
Entity File Number | 001-39111 |
Document Shell Company Report | false |
Document Registration Statement | false |
Entity Incorporation, State or Country Code | E9 |
ICFR Auditor Attestation Flag | false |
Entity Address, Postal Zip Code | 200032 |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | Suite 1607, Building A |
Entity Address, Address Line Two | No.596 Middle Longhua Road |
Entity Address, Address Line Three | Xuhui District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Contact Personnel Name | Chengcai Qu, Chief Executive Officer |
Contact Personnel Email Address | Email: ccqu@qk365.com |
City Area Code | 21 |
Local Phone Number | 6422-8532 |
Entity Address, Postal Zip Code | 200032 |
ADR [Member] | |
Document Information [Line Items] | |
Trading Symbol | QK |
Title of 12(b) Security | American depositary shares |
Security Exchange Name | NASDAQ |
Class A ordinary shares [Member] | |
Document Information [Line Items] | |
No Trading Symbol Flag | true |
Title of 12(b) Security | Class A ordinary shares |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 22,879 | $ 3,370 | ¥ 159,799 |
Restricted cash | 8,887 | 1,309 | 91,015 |
Accounts receivable | 1,943 | 286 | 1,306 |
Amounts due from related parties | 168 | 25 | 5,587 |
Prepaid rent and deposit | 51,281 | 7,553 | 128,213 |
Advances to suppliers | 16,043 | 2,363 | 64,028 |
Other current assets | 101,803 | 14,994 | 146,559 |
Total current assets | 203,004 | 29,900 | 596,507 |
Non-current assets: | |||
Property and equipment, net | 358,022 | 52,731 | 1,185,311 |
Intangible assets, net | 222,123 | 32,715 | 1,248 |
Land use rights | 10,448 | 1,539 | 10,734 |
Other assets | 57,133 | 8,415 | 5,946 |
Total non-current assets | 647,726 | 95,400 | 1,203,239 |
Total assets | 850,730 | 125,300 | 1,799,746 |
Current liabilities: | |||
Accounts payable | 294,469 | 43,371 | 277,103 |
Amounts due to related parties | 6,594 | 971 | 3,121 |
Deferred revenue | 152,619 | 22,478 | 78,540 |
Short-term debt | 762,136 | 112,251 | 319,103 |
Rental installment loans | 54,505 | 8,028 | 756,749 |
Deposits from tenants | 82,191 | 12,105 | 163,203 |
Payable for asset acquisition | 165,808 | 24,421 | |
Accrued expenses and other current liabilities | 443,418 | 65,310 | 99,292 |
Total current liabilities | 1,961,740 | 288,935 | 1,697,111 |
Non-current liabilities: | |||
Long-term debt | 464,920 | 68,475 | 428,345 |
Convertible note, net | 206,466 | 30,408 | |
Long-term deferred rent | 212,054 | 31,232 | 387,739 |
Contingent earn-out liabilities | 0 | 97,417 | |
Total non-current liabilities | 883,440 | 130,115 | 913,501 |
Total liabilities | 2,845,180 | 419,050 | 2,610,612 |
Commitments and contingencies (Note 17) | |||
Mezzanine equity: | |||
Mezzanine equity | 0 | 1,425,485 | |
Shareholders' deficit: | |||
Ordinary shares (US$0.00001 par value per share; 3,500,000,000 and 5,000,000,0000 shares authorized; 430,450,490 and 1,436,010,850 shares issued and outstanding as of September 30, 2019 and 2020, respectively) | 92 | 14 | 27 |
Treasury shares, at cost | (298,110) | (43,907) | |
Additional paid-in capital | 2,085,099 | 307,102 | |
Accumulated deficit | (3,809,516) | (561,081) | (2,275,924) |
Accumulated other comprehensive (loss) income | 18,357 | 2,704 | (5,908) |
Total Q&K International Group Limited shareholders' deficit | (2,004,078) | (295,168) | (2,246,028) |
Noncontrolling interest | 9,628 | 1,418 | 9,677 |
Total shareholders' deficit | (1,994,450) | (293,750) | (2,236,351) |
Total liabilities, mezzanine equity and shareholders' deficit | ¥ 850,730 | $ 125,300 | 1,799,746 |
Series B Convertible Redeemable Preferred Shares | |||
Mezzanine equity: | |||
Mezzanine equity | 316,765 | ||
Series C Convertible Redeemable Preferred Shares | |||
Mezzanine equity: | |||
Mezzanine equity | 272,633 | ||
Series C1 Convertible Redeemable Preferred Shares | |||
Mezzanine equity: | |||
Mezzanine equity | 236,320 | ||
Series C-2 Convertible Redeemable Preferred Shares | |||
Mezzanine equity: | |||
Mezzanine equity | 599,767 | ||
Series A Non-redeemable Preferred Shares | |||
Shareholders' deficit: | |||
Series A non-redeemable preferred shares (US$0.00001 par value; 255,549,510 and nil shares authorized, issued and outstanding as of September 30, 2019 and 2020) | 35,777 | ||
Total shareholders' deficit | ¥ 35,777 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Sep. 30, 2020$ / shares | Sep. 30, 2020CNY (¥)shares | Sep. 30, 2019$ / shares | Sep. 30, 2019CNY (¥)shares |
Ordinary shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | ||
Ordinary shares, shares authorized | 50,000,000,000 | 3,500,000,000 | ||
Ordinary shares, shares issued | 1,436,010,850 | 430,450,490 | ||
Ordinary shares, shares outstanding | 1,436,010,850 | 430,450,490 | ||
Series B Convertible Redeemable Preferred Shares | ||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | ||
Convertible redeemable preferred shares, shares authorized | 160,000,000 | 160,000,000 | ||
Convertible redeemable preferred shares, shares issued | 160,000,000 | 160,000,000 | ||
Convertible redeemable preferred shares, shares outstanding | 160,000,000 | 160,000,000 | ||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 233,350 | ||
Series C Convertible Redeemable Preferred Shares | ||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | ||
Convertible redeemable preferred shares, shares authorized | 120,000,000 | 120,000,000 | ||
Convertible redeemable preferred shares, shares issued | 120,000,000 | 120,000,000 | ||
Convertible redeemable preferred shares, shares outstanding | 120,000,000 | 120,000,000 | ||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 287,231 | ||
Series C1 Convertible Redeemable Preferred Shares | ||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | ||
Convertible redeemable preferred shares, shares authorized | 103,500,000 | 103,500,000 | ||
Convertible redeemable preferred shares, shares issued | 103,500,000 | 103,500,000 | ||
Convertible redeemable preferred shares, shares outstanding | 103,500,000 | 103,500,000 | ||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 255,213 | ||
Series C-2 Convertible Redeemable Preferred Shares | ||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | ||
Convertible redeemable preferred shares, shares authorized | 273,360,850 | 273,360,850 | ||
Convertible redeemable preferred shares, shares issued | 273,360,850 | 273,360,850 | ||
Convertible redeemable preferred shares, shares outstanding | 273,360,850 | 273,360,850 | ||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 595,962 | ||
Series A Non-redeemable Preferred Shares | ||||
Preferred shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | ||
Preferred shares, shares authorized | 0 | 255,549,510 | ||
Preferred shares, shares issued | 0 | 255,549,510 | ||
Preferred shares, shares outstanding | 0 | 255,549,510 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020CNY (¥)¥ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019CNY (¥)¥ / sharesshares | Sep. 30, 2018CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
Rental service | ¥ 1,105,172 | $ 162,774 | ¥ 1,089,164 | ¥ 796,940 |
Value-added services and others | 102,791 | 15,139 | 144,606 | 92,997 |
Total net revenues | 1,207,963 | 177,913 | 1,233,770 | 889,937 |
Operating costs and expenses: | ||||
Operating cost (including costs charged by related parties of RMB63,444, RMB52,034 and RMB 47,464 for the years ended September 30, 2018, 2019 and 2020, respectively) | (1,203,415) | (177,245) | (1,304,992) | (897,959) |
Selling and marketing expenses (including expenses charged by related parties of RMB28,931, RMB55,774 and RMB nil for the years ended September 30, 2018, 2019 and 2020, respectively) | (63,512) | (9,354) | (135,413) | (117,826) |
General and administrative expenses | (102,769) | (15,136) | (108,196) | (84,953) |
Research and development expenses (including expenses charged by related parties of RMB154, nil and nil for the years ended September 30, 2018, 2019 and 2020, respectively) | (24,934) | (3,672) | (47,029) | (51,947) |
Pre-operation expenses (including expenses charged by related parties of RMB26,460, RMB 14,431and RMB nil for the years ended September 30, 2018, 2019 and 2020, respectively) | (14,245) | (2,098) | (42,661) | (117,107) |
Impairment loss on long lived assets | (846,766) | (124,715) | (46,213) | (50,614) |
Loss from disposal of property and equipment | (468,980) | (69,073) | ||
Other income (expense), net | 15,881 | 2,339 | 2,427 | 4,034 |
Total operating costs and expenses | (2,708,740) | (398,954) | (1,682,077) | (1,316,372) |
Loss from operations | (1,500,777) | (221,041) | (448,307) | (426,435) |
Interest expense, net | (130,206) | (19,177) | (91,914) | (77,167) |
Foreign exchange loss, net | (62) | (9) | (457) | (91) |
Fair value change of contingent earn-out liabilities | 97,417 | 14,348 | 42,404 | 6,164 |
Loss before income taxes | (1,533,628) | (225,879) | (498,274) | (497,529) |
Income tax expense | (13) | (2) | (63) | (2,393) |
Net loss | (1,533,641) | (225,881) | (498,337) | (499,922) |
Less: net loss attributable to noncontrolling interests | (49) | (7) | (95) | (63) |
Net loss attributable to Q&K International Group Limited | (1,533,592) | (225,874) | (498,242) | (499,859) |
Deemed dividend | (307,389) | (135,545) | ||
Net loss attributable to ordinary shareholders | ¥ (1,533,592) | $ (225,874) | ¥ (805,631) | ¥ (635,404) |
Net loss per share attributable to ordinary shareholders of Q&K International Group Limited—Basic and diluted | (per share) | ¥ (1.14) | $ (0.17) | ¥ (1.87) | ¥ (1.55) |
Weighted average number of ordinary shares used in computing net loss per share—Basic and diluted | shares | 1,351,127,462 | 1,351,127,462 | 430,450,490 | 409,403,915 |
Net loss | ¥ (1,533,641) | $ (225,881) | ¥ (498,337) | ¥ (499,922) |
Other comprehensive income (loss), net of tax of nil: | ||||
Foreign currency translation adjustments | 24,265 | 3,574 | (7,621) | 4,551 |
Comprehensive loss | (1,509,376) | (222,307) | (505,958) | (495,371) |
Less: comprehensive loss attributable to noncontrolling interests | (49) | (7) | (95) | (63) |
Comprehensive loss attributable to Q&K International Group Limited | (1,509,327) | (222,300) | (505,863) | (495,308) |
Deemed dividend | (307,389) | (135,545) | ||
Comprehensive loss attributable to ordinary shareholders | ¥ (1,509,327) | $ (222,300) | ¥ (813,252) | ¥ (630,853) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Costs and expenses charged by related parties | ¥ 47,464 | ¥ 139,026 | ¥ 210,963 |
Other comprehensive income (loss), tax | 0 | 0 | 0 |
Operating cost | |||
Costs and expenses charged by related parties | 47,464 | 52,034 | 63,444 |
Selling and marketing expenses | |||
Costs and expenses charged by related parties | 0 | 55,774 | 28,931 |
Research and development expenses | |||
Costs and expenses charged by related parties | 0 | 0 | 154 |
Pre-operation expenses | |||
Costs and expenses charged by related parties | ¥ 0 | ¥ 14,431 | ¥ 26,460 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Series A non-redeemable preferred sharesCNY (¥)shares | Ordinary sharesCNY (¥)shares | Treasury stockCNY (¥) | Additional paid in capitalCNY (¥) | Accumulated other comprehensive (loss) incomeCNY (¥) | Accumulated deficitCNY (¥) | TotalCNY (¥) | Noncontrolling interestsCNY (¥) |
Beginning balance at Sep. 30, 2017 | ¥ (794,516) | ¥ 35,777 | ¥ 24 | ¥ (2,838) | ¥ (845,314) | ¥ (812,351) | ¥ 17,835 | |||
Beginning balance, shares at Sep. 30, 2017 | shares | 255,549,510 | 384,450,490 | ||||||||
Capital contribution | 3 | ¥ 3 | 3 | |||||||
Capital contribution, shares | shares | 46,000,000 | |||||||||
Share-based compensation | 2,252 | ¥ 2,252 | 2,252 | |||||||
Deemed dividend accretion | (135,545) | (2,252) | (133,293) | (135,545) | ||||||
Net loss | (499,922) | (499,859) | (499,859) | (63) | ||||||
Foreign currency translation adjustments | 4,551 | 4,551 | 4,551 | |||||||
Ending balance at Sep. 30, 2018 | (1,423,177) | ¥ 35,777 | ¥ 27 | 1,713 | (1,478,466) | (1,440,949) | 17,772 | |||
Ending balance, shares at Sep. 30, 2018 | shares | 255,549,510 | 430,450,490 | ||||||||
Acquisition of noncontrolling interests | (8,000) | (8,000) | ||||||||
Share-based compensation | 8,173 | 8,173 | 8,173 | |||||||
Deemed dividend accretion | (307,389) | (8,173) | (299,216) | (307,389) | ||||||
Net loss | (498,337) | (498,242) | (498,242) | (95) | ||||||
Foreign currency translation adjustments | (7,621) | (7,621) | (7,621) | |||||||
Ending balance at Sep. 30, 2019 | (2,236,351) | ¥ 35,777 | ¥ 27 | (5,908) | (2,275,924) | (2,246,028) | 9,677 | |||
Ending balance, shares at Sep. 30, 2019 | shares | 255,549,510 | 430,450,490 | ||||||||
Issuance of ordinary shares in connection with initial public offering ("IPO"), net off issuance of cost of RMB 29,289 | 289,027 | $ 44,534 | ¥ 6 | 289,021 | 289,027 | |||||
Issuance of ordinary shares in connection with initial public offering ("IPO"), net off issuance of cost of RMB 29,289, shares | shares | 93,150,000 | |||||||||
Conversion of Series A non-redeemable preferred shares into ordinary shares | ¥ (35,777) | ¥ 17 | 35,760 | |||||||
Conversion of Series A non-redeemable preferred shares into ordinary shares, shares | shares | (255,549,510) | 255,549,510 | ||||||||
Conversion of mezzanine equity into ordinary shares | 1,425,478 | ¥ 42 | 1,425,436 | 1,425,478 | ||||||
Conversion of mezzanine equity into ordinary shares, shares | shares | 656,860,850 | |||||||||
Repurchase of American Depositary Shares ("ADS") from certain investors into treasury shares | (298,110) | ¥ (298,110) | (298,110) | |||||||
ADS to be issued in exchange for acquisition of certain assets from two third parties | 312,273 | 312,273 | 312,273 | |||||||
Share-based compensation | 16,045 | 16,045 | 16,045 | |||||||
Warrants issued in connection with convertible notes | 6,564 | 6,564 | 6,564 | |||||||
Net loss | (1,533,641) | (225,881) | (1,533,592) | (1,533,592) | (49) | |||||
Foreign currency translation adjustments | 24,265 | 3,574 | 24,265 | 24,265 | ||||||
Ending balance at Sep. 30, 2020 | ¥ (1,994,450) | $ (293,750) | ¥ 92 | ¥ (298,110) | ¥ 2,085,099 | ¥ 18,357 | ¥ (3,809,516) | ¥ (2,004,078) | ¥ 9,628 | |
Ending balance, shares at Sep. 30, 2020 | shares | 1,436,010,850 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (Parenthetical) ¥ in Thousands | 12 Months Ended |
Sep. 30, 2020CNY (¥) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of ordinary shares in connection with initial public offering ("IPO"), net off issuance of cost | ¥ 29,289 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | |
Operating activities: | ||||
Net loss | ¥ (1,533,641) | $ (225,881) | ¥ (498,337) | ¥ (499,922) |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
Share-based compensation | 16,045 | 2,363 | 8,173 | 2,252 |
Depreciation and amortization | 263,038 | 38,741 | 215,075 | 152,311 |
Loss from disposal of property, plant and equipment | 468,980 | 69,073 | ||
Accretion of interest expense | 214 | 31 | 15,777 | 10,733 |
Fair value change of contingent earn-out liabilities | (97,417) | (14,348) | (42,404) | (6,164) |
Deferred rent | (201,127) | (29,622) | 57,550 | 182,275 |
Impairment loss | 846,766 | 124,715 | 46,213 | 50,614 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (644) | (95) | (831) | (160) |
Amounts due from related parties | 5,419 | 798 | 8,940 | (9,963) |
Prepaid rent and deposit | 146,913 | 21,638 | 49,762 | (75,939) |
Advances to suppliers | 47,985 | 7,067 | 4,891 | (2,393) |
Other current assets | 44,756 | 6,592 | 1,960 | (21,498) |
Other assets | (51,187) | (7,539) | (5,557) | (188) |
Accounts payable | 115,201 | 16,967 | 16,306 | 3,543 |
Amounts due to related parties | 3,473 | 512 | (29,098) | 6,922 |
Deferred revenue | (127,947) | (18,845) | 17,489 | 22,182 |
Deposits from tenants | (161,525) | (23,790) | 49,878 | 32,168 |
Accrued expenses and other current liabilities | 269,539 | 39,701 | (3,976) | 36,179 |
Net cash (used in) provided by operating activities | 54,841 | 8,078 | (88,189) | (117,048) |
Investing activities: | ||||
Purchases of property and equipment | (99,172) | (14,606) | (341,708) | (674,298) |
Payment for asset acquisition (Note 8) | (39,498) | (5,800) | ||
Purchases of intangible assets | (613) | |||
Cash payment for renovation | (29,078) | |||
Reimbursement received for renovation payment | 11,971 | |||
Collection of amount due from related parties | 7,978 | |||
Net cash used in investing activities | (138,670) | (20,406) | (351,450) | (674,298) |
Financing activities: | ||||
Proceeds from issuance of ordinary shares | 3 | |||
Proceeds from IPO, net off issuance cost of RMB 29,289 | 289,027 | 44,534 | ||
Proceeds from issuance of convertible notes | 163,565 | 24,018 | ||
Payment for repurchase of ADS from certain investors into treasury shares | (248,859) | (36,653) | ||
Proceeds from short-term bank borrowings | 351,046 | 51,703 | 84,000 | 100,000 |
Repayment of short-term bank borrowings | (65,000) | (9,573) | (79,000) | (49,000) |
Proceeds from long-term bank borrowings | 150,000 | 22,093 | 170,000 | |
Repayment of long-term bank borrowings | (122,548) | (18,049) | (49,137) | (108,130) |
Proceeds from rental installment loans | 258,097 | 38,014 | 1,084,324 | 1,886,187 |
Repayment of rental installment loans | (924,171) | (136,116) | (1,442,810) | (1,523,136) |
Acquisition of non-controlling interest | (8,000) | |||
Proceeds from issuance of preferred shares, net of issuance costs | 530,002 | 185,132 | ||
Proceeds from capital lease and other financing arrangement payable | 65,415 | 9,635 | 327,584 | 54,722 |
Repayment of capital lease and other financing arrangement payable | (51,496) | (7,585) | (47,394) | (6,250) |
Net cash provided by (used in) financing activities | (134,924) | (17,979) | 569,569 | 539,528 |
Effect of foreign exchange rate changes | (295) | (104) | 2,132 | 3,455 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (219,048) | (30,411) | 132,062 | (248,363) |
Cash, cash equivalents and restricted cash at the beginning of the year | 250,814 | 35,090 | 118,752 | 367,115 |
Cash, cash equivalents and restricted cash at the end of the year | 31,766 | 4,679 | 250,814 | 118,752 |
Supplemental disclosure of cash flow information: | ||||
Interest paid, net of amounts capitalized | (16,628) | (2,449) | (79,601) | (68,636) |
Income taxes paid | (90) | (13) | (57) | (1,222) |
Reconciliation to amounts on the consolidated balance sheets: | ||||
Total cash, cash equivalents and restricted cash | 31,766 | 4,679 | 250,814 | 118,752 |
Supplemental schedule of non-cash investing and financing activities: | ||||
Purchases of property and equipment included in payables | (97,835) | (14,410) | (253,447) | ¥ (411,451) |
Acquisition of rental assets financed by ADS (Note 4) | (22,540) | (3,320) | ||
Asset acquisition financed by payables and ADS (Note 8) | (455,541) | (65,873) | ||
Purchases of property and equipment included in new capital lease | ¥ (21,279) | |||
Conversion of Series A non-redeemable preferred shares and mezzanine into ordinary shares | (1,425,478) | (209,950) | ||
Issuance of convertible notes to repurchase ADS from an investor | ¥ 49,251 | $ 7,232 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands | 12 Months Ended |
Sep. 30, 2020CNY (¥) | |
Statement of Cash Flows [Abstract] | |
Proceeds from issuance of ordinary shares in connection of IPO, net off issuance cost | ¥ 29,289 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Q&K International Group Limited (the “Company” or “Q&K”), 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 . As of September 30, 2020, the Company’s significant subsidiaries, variable interest entity (the “VIE”) and the significant subsidiaries of the VIE are as follows: Entity Date of incorporation Place of incorporation Percentage of legal/beneficial ownership by the Company Principal activities Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding QingKe (China) Limited July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting” or the “WFOE”) April 2, 2015 PRC 100 % Holding and Operating Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd. (“Q&K May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment Management Co., Ltd June 19, 2020 PRC 100 % Operating VIE: Shanghai Qingke E-Commerce E-commerce” August 2, 2013 PRC 100 % Holding and Operating Subsidiaries of the VIE: Shanghai Qingke Equipment Rental Co., Ltd. (“Q&K Rental”) March 17, 2015 PRC 100 % Operating Shanghai Qingke Public Rental Housing Leasing Management Co., Ltd. (“Qingke Public Rental”) November 5, 2014 PRC 100 % Operating Suzhou Qingke Information Technology Co., Ltd. (“Suzhou Qingke”) April 3, 2014 PRC 100 % Operating History of the Group and Reorganization The Group began its operations through Shanghai Q&K Fashion Life Co., Ltd. (“Q&K Fashion”) which was founded on November 8, 2007, by the parents of Jin Guangjie, who had transferred all voting rights to Jin Guangjie (the “Founder” or “CEO”) by proxy agreements. On August 2, 2013, Q&K Fashion incorporated Q&K E-commerce. During % controlling interests in Q&K Fashion. During 2014, Suzhou Qingke and Qingke Public Rental was formed and held by Q&K E-commerce in the PRC to become the main operating entities of the Group. During 2014-2015, the Group underwent a series of reorganization activities (“the Reorganization”) to redomicile its businesses from PRC to the Cayman Islands for an offshore holding structure. On August 14, 2014, Q&K was founded in the Cayman Islands as an exempted company with limited liability under the laws of the Cayman Islands, which through an intermediate holding company in Hong Kong established Q&K Investment Consulting, or the “WFOE”) as a wholly-owned subsidiary in the PRC in April 2015. During March to April 2015, Q&K Fashion, through Q&K E-commerce, incorporated Further, the WFOE entered into a series of contractual arrangements (Note 2) with Q&K E-commerce (the The Company issued ordinary shares and Series A preferred shares to the shareholders of Q&K Fashion in the same proportions as the percentage of equity interest they held in Q&K Fashion. Given that all the entities were controlled by the Founder, the above series of transactions were accounted for as a reorganization under common control. The Company completed its initial public offering (IPO) on the Nasdaq Global Market in November 2019, for a net offering size of approximately US$44,534 (equivalent to RMB289,027). The Company offered 2,700,000 ADSs in the IPO, with each ADS represents 30 Class A ordinary shares, par value $0.00001 per share at $17 per ADS. In addition, the underwriters of the Company’s IPO have exercised in full their over-allotment option to purchase additional 405,000 ADSs, with each ADS represents 30 Class A ordinary shares, par value $0.00001 per share at $17 per ADS. |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group’s ability to generate cash flows from operations, and the Group’s ability to arrange adequate financing arrangements, to support its working capital requirements. Going concern The Group has been incurring losses from operations since its inception. Accumulated deficits amounted to RMB September 30 , In addition, the Company’s operations have been affected by the outbreak and spread of the coronavirus disease 2019 (COVID-19), which in March 2020, was declared a pandemic by the World Health Organization. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Company’s businesses have been negatively impacted by the COVID-19 coronavirus outbreak to a certain extent. Due to the outbreak of COVID-19, in early February 2020, the Chinese government required the nationwide closure of many business activities in the PRC to prevent the spread of COVID-19 and protect public health. During this period, the Company adopted a defensive strategy after a prudent assessment of the broader macroeconomic downturn by consolidating internal resources, further improving operating efficiencies and focusing on asset quality improvement rather than aggressive expansion. During the year ended September 30, 2020, the and the rental spread margin before discount for rental prepayments decreased as . These factors raise substantial 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, issuance of convertible notes, principal shareholder’s financial support. The Group will focus on the following activities: • In July 2020, the Company has executed a convertible note and warrant purchase agreement with two investors (Note 9 several • In December 2020, the Company entered into two new bank borrowing agreements with Shanghai Huarui Bank (the “SHRB”), pursuant to which the Company borrowed RMB 25,929 and RMB8,998, respectively. The Company used the bank borrowings to repay the outstanding bank borrowings; • In July and November 2020, the Company entered into two bank borrowing extension agreements with SHRB, pursuant to which the bank extended due date of one borrowing with the principal March of 2022, and due date of one borrowing with the principal of RMB October 1 • In February 2021, a principal shareholder of the Company, has agreed to consider to provide necessary financial support in the form of debt and/or equity, to the Group to enable the Group to meet its other liabilities and commitments as they become due for at least twelve months from the issuance date of this consolidated financial statements. However, future financing requirements will depend on many factors, including the scale and pace of the expansion of the Group’s apartment network, efficiency in apartment operation, including apartment renovation and pricing, the expansion of the Group’s sales and marketing activities, and potential investments in, or acquisitions of, businesses or technologies. Inability to access financing on favorable terms in a timely manner or at all would materially and adversely affect the Group’s business, results of operations, financial condition, and growth prospects. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated variable interest entity and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. To comply with the PRC law and regulations which restrict foreign ownership of companies that provide value-added telecommunication services in the PRC, Q&K Investment Consulting entered into VIE Agreements with Q&K E-Commerce and Q&K E-Commerce and The following is a summary of the key VIE Agreements: Shareholder Voting Proxy Agreement Q&K Investment Consulting, Q&K E-Commerce and Q&K E-Commerce entered Q&K E-Commerce irrevocably or her attorney-in-fact to exercise Q&K E-Commerce, such Spousal Consent Letters The spouse of one shareholder of the VIE who holds 10.47% equity interest in Q&K E-Commerce signed Q&K E-Commerce shares Q&K E-Commerce shares Exclusive Technology Service Agreement Q&K Investment Consulting and Q&K E-Commerce entered Q&K E-Commerce with Q&K E-Commerce shall Q&K E-Commerce agrees Q&K E-Commerce also Q&K E-Commerce’s request Exclusive Option Agreement Q&K Investment Consulting, Q&K E-Commerce and Q&K E-Commerce entered Q&K E-Commerce and Q&K E-Commerce. The Q&K E-Commerce as Q&K E-Commerce irrevocably law. Q&K E-Commerce or Q&K E-Commerce or Q&K E-Commerce granted Q&K E-Commerce’s assets Q&K Investment Consulting may transfer any of its rights or obligations under this agreement to a third party after notifying Q&K E-Commerce and Q&K E-Commerce shall Q&K E-Commerce also Q&K E-Commerce to of Q&K E-Commerce from Equity Pledge Agreement Q&K Investment Consulting, Q&K E-Commerce and Q&K E-Commerce entered Q&K E-Commerce has Q&K E-Commerce to Q&K E-Commerce of Q&K E-Commerce or Q&K E-Commerce agrees Q&K E-Commerce and The Group believes that the contractual arrangements with the VIE are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the business and operating licenses of the Company’s PRC subsidiaries and VIE; • discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and VIE; • limit the Group’s business expansion in China by way of entering into contractual arrangements; • impose fines or other requirements with which the Company’s PRC subsidiaries and VIE may not be able to comply; • require the Company or the Company’s PRC subsidiaries or VIE to restructure the relevant ownership structure or operations; or • restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China. The imposition of any of these penalties may result in a material adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIE or the right to receive their economic benefits, the Group would no longer be able to consolidate the financial results of the VIE. The following financial statement amounts and balances of the VIE and its subsidiaries As of September 30, 2019 2020 RMB RMB USD ASSETS Cash and cash equivalents 55,926 15,227 2,243 Restricted cash 91,015 8,887 1,309 Accounts receivable 1,306 1,943 286 Amounts due from related parties 5,587 168 25 Prepaid rent and deposit 127,096 51,281 7,553 Advances to suppliers 64,028 32,122 4,731 Other current assets 146,316 44,400 6,539 Property and equipment, net 1,170,446 358,022 52,731 Intangible assets, net 1,240 222,123 32,715 Land use rights 10,734 10,448 1,539 Other assets — 57,024 8,399 Total assets 1,673,694 801,645 118,070 Liabilities Accounts payable 277,103 294,469 43,371 Amounts due to related parties 3,121 6,594 971 Deferred revenue 78,540 152,619 22,478 Short-term debt 319,103 540,808 79,653 Rental installment loans 756,749 54,505 8,028 Deposits from tenants 163,203 82,191 12,105 Accrued expenses and other current liabilities 93,908 912,513 134,399 Long-term debt 428,345 464,920 68,475 Long-term deferred rent 387,739 212,054 31,232 Total liabilities 2,507,811 2,720,673 400,712 For the years ended September 30 2018 2019 2020 RMB RMB RMB USD Net revenues 889,937 1,233,770 1,207,963 177,914 Net loss (251,555 ) (177,738 ) (1,500,305 ) (220,971 ) For the years ended September 30 2018 2019 2020 RMB RMB RMB USD Net cash provided by operating activities 10,964 393,847 72,293 10,648 Net cash used in investing activities (515,360 ) (351,450 ) (99,172 ) (14,606 ) Net cash provided by (used in) financing activities 411,219 39,567 (95,948 ) (14,132 ) The consolidated VIE and VIE’s subsidiaries contributed 100% of the Group’s consolidated revenues for the years ended September 30, 2018, 2019 and 2020. As o There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIE. However, if the VIE were ever to need financial support, the Group may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE. There are no assets held in the VIE and its subsidiaries that can be used only to settle obligations of the VIE and its subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE and its subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the VIE. Relevant PRC laws and regulations restrict the VIE from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 15 for disclosure of restricted net assets. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include the useful lives and impairment of property and equipment, valuation allowance of deferred tax assets, share-based compensation, contingent earn-out non-redeemable Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use that which have original maturities of three months or less when purchased. Restricted cash Restricted cash mainly represents the Group’s deposits to the bank as a form of security with respect to the Group’s debt and tenants’ repayment Accounts receivable Accounts receivable mainly consist of rental receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the credit risk of specific customers. In evaluating the credit risk of specific customers, the Group considers several factors, including the age of the balance, the customers’ payment history and their current credit worthiness, and current economic trends. Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and impairment losses. The renovations and interest cost incurred during construction are capitalized. Depreciation of property and equipment is provided using the straight-line method over their expected useful lives. The expected useful lives are as follows: Leasehold improvements Shorter of the lease term or their estimated useful lives Buildings 45 years Furniture, fixtures and equipment 5-8 Motor vehicles 8 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive loss as the difference between the net sales proceeds and the carrying amount of the underlying asset. Capitalization of interest Interest cost incurred on funds used to construct leasehold improvements during the active construction period is capitalized. The interest capitalized is determined by applying the borrowing interest rate to the average amount of accumulated capital expenditures for the assets under construction during the period. Total interest expenses incurred were RMB113,917 and RMB 134,092 for the years ended September 30, 2019 and 2020, respectively, out of which the capitalized amount were RMB19,542 and nil, respectively. Intangible assets, net On July 22, 2020, the Company entered into a series of asset purchase agreements with Great Alliance Coliving Limited. and its affiliates (“Beautiful House”) to acquire assets, including approximately 72,000 apartment rental contracts with leasehold improvements attached to them, and trademarks of Beautiful House. In addition, the Company also assumed liabilities associated with acquired assets. The Company accounted for the acquisition as an asset acquisition because the Company did not acquire substantive process from Beautiful House. The total consideration, after deducting the liabilities assumed in the asset acquisition, was allocated to identified apartment rental contracts and trademarks on the basis of their relative fair value. See Note 8. Purchased intangible assets are mainly comprised of software. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years Land use rights Land use rights, which are all located in the PRC, are recorded at cost and amortized on a straight-line basis over the remaining term of the land certificates, which is between 30 to 50 years. Amortization expense of land use rights for the years ended September 30, 2018, 2019 and 2020 amounted to RMB286, RMB286 and RMB286, respectively. 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. The Group performed an impairment test of its long-lived assets associated with certain apartments due to the continued underperformance relative to the projected operating results, and recognized impairment losses of RMB , RMB and RMB during the years ended September , , and , respectively. Capital lease and other financing arrangement Leases of leasehold improvements or furniture, fixtures and equipment that transfer to the Group substantially all of the risks and rewards of ownership by the end of the lease term are classified as capital leases. The leasehold improvements and liability are measured initially at an amount equal to the lower of their fair value or the present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under capital leases are apportioned between the finance expense and the reduction of the outstanding lease liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the lease liability. The Company started to cooperate with a rental service company to source and renovate apartments since August 2018. For certain identified newly sourced apartments, the rental service company reimburses the Company for costs incurred for the renovation. The Company then makes payments to the rental service company in installments equal to the reimbursed renovation costs plus interest and tax over a period of five years. At the end of the five-year period, the ownership of the renovation will be transferred to the Company. The Company accounts for this arrangement with the rental service company as a capital lease. As of September 30, 2020, the Company ha d payable of RMB 73,430 Under the same arrangement above, the Company also sells leasehold improvements and furniture, fixtures and equipment of certain existing apartments to the rental service company at carrying value and simultaneously leases them back. Such transaction fails sales and lease-back accounting and is accounted for as a financing arrangement. The proceeds received from the rental service company are reported as other financing arrangement payable. As of September 30, 2020, the Company has RMB other financing arrangement payable. The underlying leasehold improvements and furniture, fixtures and equipment are with aggregate initial value of RMB and carrying value of RMB as of September 30, 2020. Contingent earn-out The Group records contingent earn-out C-1 earn-out C-1 earn-out and RMB , respectively. See Note 11. Lease accounting with tenants The Group sources apartments from landlords and converts them into standardized furnished rooms to lease to tenants seeking affordance residences in China. Revenues are primarily derived from the lease payments from its tenants and are recorded net of tax. The Group typically enters into 12 to 26-month leases with tenants and a majority of which have a lock-in period of 12 months or longer. The lock-in lock-in lock-in In April 2020, the Group started to modify arrangements with a rental service company (See Capital lease and other financing arrangement) The Future rentals expected to be collected from outstanding leases existing as of September 30, 2020 totaled , for ing l Rental incentives Tenants who prepay rent are entitled to rental discounts. Tenants who prepay rent of at least the first six months of the lease term can enjoy a % rental discount, and tenants who prepay at least the first twelve months of lease term rental can enjoy a % rental discount (subject to a RMB limit per month). Such incentives are only applicable during the lock-in , RMB and RMB of rental incentives for the years ended September 30, 2018, 2019 and 2020, respectively. Rental installment loan arrangement In order to encourage tenants to make advance payments, the Group cooperates with various financial institution partners to facilitate rental installment loans for its tenants, who apply for rental installment loans directly with these financial institutions. The financial institutions approve or decline the rental installment loans based on the tenants credit profile, and approval of the rental installment loans are not guaranteed to the tenants at lease inception. If the loans are approved by the financial institution partners, the proceeds, which represent the total rental payments for the period covered under the lease agreement, are remitted to the Group by way of the tenant’s entrustment loan. The proceeds would then be applied to the tenants’ rental payments on monthly basis. The Group records the entire prepayment as rental installment loans. Tenants repay the loan principal in monthly installments directly to the financial institutions which equals to the monthly rental payment. The Group pays installment loan interests on behalf of the tenants and recognizes such payments as interest expense in the consolidated statements of comprehensive loss. The Group also provides guarantee to these financial institutions with respect to the tenants’ repayment of the loans. In the event that the tenants default on the repayment or early terminate the lease agreements, the Group must return the remaining prepayments to the financial institutions within a prescribed period of time. Under the rental installment loan scheme, the Group has full control of the entire installment loan proceeds and the security deposits collected from the tenants at lease inception are usually sufficient to cover for the delinquent payments from default. As such, the Group determines that guarantee liability to be for the years ended September 30, 2019 and 2020. Impact on cash flows For rental installment loans received directly from financial institutions, the Group determines the substance of the arrangement as akin to a debt from its tenants, and as such, this portion was classified as a cash inflow from financing activities within the Group’s consolidated statements of cash flows. During the lease term, constructive receipts and disbursements are recognized on a monthly basis by recognizing the repayment of rental installment loans as a financing cash outflow and the receipt of monthly rental income as an operating cash inflow. Rental prepayments received directly from tenants were recorded as deferred revenue in the consolidated balance sheets and classified as a cash inflow from operating activities. Lease accounting with landlords The Group leases apartments from landlords usually for a period of five three 90- 120 non-compounding Rental expense to the landlords recorded in consolidated statements of comprehensive losses were RMB755,380, RMB1,003,572 and RMB 813,773 for the years ended September 30, 2018, 2019 and 2020, respectively. Value-added services and others The Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”) on October 1, 2019, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 605 and therefore there was no material changes. In accordance with ASC 606, revenues are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company also evaluates whether it is appropriate to record the gross amount of product sales. When the Company is a principal, that the Company obtains control of the specified goods before they are transferred to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled to in exchange for the specified goods transferred. Revenues are recorded net of value-added taxes. For the year ended September 30, 2020, the Group generated revenues from provision of value-added services. Value-added services and others primarily consist of fees received from the tenants from the Group’s provision of internet connection and utility services as part of the lease agreement. The service fees from tenants are fixed in the agreements and is collected on a monthly basis. The Croup recognized on a monthly basis during the period of the lease term. The service fees are recognized on a gross basis as the Group is the primary obligor in provision of such services and has discretion in establishing transaction prices. Pre-operation The Group expenses certain costs incurred in connection with apartment pre-operation Selling and marketing expenses Sales and marketing expenses consist primarily of online and offline marketing expenses, promotion expenses, staff costs of sales personnel and other related incidental expenses that are incurred indirectly to attract or retain tenants for the Group. Advertising expenses incurred were RMB35,270, RMB39,583 and RMB 10,773 for the years end September 30, 2018, 2019 and 2020, respectively. Research and development expenses Research and development expenses include payroll expenses, employee benefits, and other headcount-related expenses associated with platform development and big data analysis to support the Group’s business operations. Employee benefit expenses As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. The total expenses the Group incurred for the plan were RMB17,953, RMB20,051 and RMB 18,283 for the years ended September 30, 2018, 2019 and 2020, respectively. PRC value-added taxes and related taxes The Group is subject to value-added taxes at the rate of 6%, 9% and 13% , education surtax and urban maintenance and construction tax, on the services provided in the PRC. Education surtax and urban maintenance and construction tax are primarily levied based on revenue at applicable rates and are recorded as a reduction of revenues. Income taxes Current income taxes are provided on the basis of profit before income tax for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. The Group follows the asset and liability method of accounting for income taxes. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such determination, the management considers all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step Treasury shares The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account on the consolidated balance sheets. At retirement of the treasury shares, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares) and retained earnings. For the year ended September 30, 2020, the Group repurchased 77,250,000 ordinary shares from certain major investors in the IPO, through cash payment Foreign currency translation The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Group’s entities incorporated in Cayman Islands, the United States and Hong Kong is the United States dollar (“US dollar”) and the functional currency of the Group’s PRC subsidiaries is RMB. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing on the day transactions occurred. Transaction gains and losses are recognized in the consolidated statements of comprehensive loss. The financial statements of the Group’s non PRC entities are translated from their respective functional currency into RMB. Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of comprehensive loss. The financial records of the Group’s subsidiaries are maintained in local currencies, which are the functional currencies. Convenience translation The Group’s business is primarily conducted in the PRC and all of the revenues are denominated in RMB. The financial statements of the Group are stated in RMB. Translations of balances in the consolidated balance sheet, and the related consolidated statements of comprehensive loss, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended September 30, 2020 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and, account receivables and amounts due from related parties. All of the Group’s cash and cash equivalents and restricted cash are held with financial institutions that Group management believes to be high credit quality. The Group conducts credit evaluations on its tenants and generally require deposits from tenants as collateral. The Group periodically evaluates the creditworthiness of the existing tenants in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. Other risks The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations. Coronavirus (“COVID-19”) The Company’s operations have been affected by the outbreak and spread of the coronavirus disease 2019 (COVID-19), COVID-19 COVID-19 Due to the outbreak of COVID-19, COVID-19 the average month-end occupancy and the rental spread margin before discount for rental prepayments decreased as of COVID-19 . As of the filing date of the consolidated financial statements, the spread of COVID-19 COVID-19 pre-covid COVID-19 Fair value The Group defines fair value as the price that would be received from selling an asset or paid to transfer a liabi |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | 3. OTHER CURRENT ASSETS As of September 30, 2019 2020 Due from a rental service company ( 1 43,786 52,410 Deductible input v 93,008 35,660 Due from a service provider (2) — 9,501 Others 9,765 4,232 Total 146,559 101,803 (1) As of September 30, 2020 and 2019, the balance due from a rental service company represented the reimbursement renovation costs due from the rental service company. The Company started to cooperate with a rental service company to source and renovate apartments since August 2018. For certain identified newly sourced apartments, the rental service company reimburses the Company for costs incurred for the renovation. The Company then makes payments to the rental service company in installments equal to the reimbursed renovation costs plus interest and tax over a period of five years. (2) Upon asset acquisition with Beautiful House (Note 8), the Group engaged a third party service provider to provide apartment operation services to the Group. To support the operation services, the Company made interest free loans to the service provider and the loans are repayable on demand. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2020 | |
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, 2019 2020 Cost: 1,914,041 725,834 Buildings 40,167 40,167 Leasehold improvements 1,308,310 449,637 Furniture, fixtures and equipment used in apartments 542,855 212,483 Vehicle 1,710 3,043 Office furniture, fixtures and equipment 20,999 20,504 Less: Accumulated depreciation (551,154 ) (217,582 ) Less: Impairment (208,328 ) (223,284 ) Construction in progress 30,752 73,054 Property and equipment, net 1,185,311 358,022 In December 2019, the Company acquired from a third party certain rental assets with fair value of RMB 22,540. The consideration was 7,662,060 shares of the Company’s Class A ordinary shares. As of September 30, 2020, the share consideration was not paid and was in the account of “additional paid-in capital”. Depreciation expenses were RMB151,543, RMB214,192, and RMB187,092 for the years ended September 30, 2018, 2019 and 2020, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 5. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of September 30, 2019 2020 Cost: 2,275 832,223 Apartment rental contracts — 634,977 Trademarks — 194,971 Software 2,275 2,275 Less: Accumulated amortization (1,027 ) (76,688 ) Less: Impairment — (533,412 ) Intangible assets, net 1,248 222,123 Amortization expenses were RMB The following table sets forth the Group’s amortization expenses for the five years since September 30, 2020: Amortization Year ending September 30, 2021 60,880 Year ending September 30, 2022 46,343 Year ending September 30, 2023 36,079 Year ending September 30, 2024 24,150 Year ending September 30, 2025 and thereafter 54,671 222,123 |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | 6. DEBT The short-term and long-term debt as of September 30, 2019 and 2020 were as follows: As of September 30, 2019 2020 Short-term debt: Short-term bank borrowings (1) 65,000 176,752 Long-term bank borrowings, current portion (1) 150,653 159,721 Capital lease and other financing arrangement payable, current portion (2) 103,450 201,835 Other short-term payable (3) — 223,828 Subtotal 319,103 762,136 Long-term debt: Long-term bank borrowings, non-current (1) 102,473 196,682 Capital lease and other financing arrangement payable, non-current (2) 298,682 242,719 Other long term payable (3) 27,190 25,519 Subtotal 428,345 464,920 Total 747,448 1,227,056 (1) Bank borrowings On September 26, 2016, the Group entered into a three-year bank credit facility with Shanghai Huarui Bank (the “SHRB”) under which the Group can draw-down up to RMB300,000 by September 26, 2019 and per annum for the years ended September 30, 2018 and 2019, respectively. The credit facility is collateralized by future cash flows generated by rental service revenue of certain rental units of the Group. The three-year revolving bank credit facility matured in September 2019. As of September 30, 2020, the Group had an outstanding balance of RMB 194,929, which was subject to an interest rate of 8.75% for the year ended September 30, 2020. In July and November 2020, SHRB extended due date of borrowing for the March of 2022 for the October 2021 0 On September 26, 2020, the Group entered into an 18-month behalf of tenants who early terminated the rented apartments (“departed tenants”) and for the daily operating expenditures. The interest rate for this credit facility was 8.5% per annum. As of September 30, 2020, the Group all of which is to be repaid within one year. On April 30, 2020, the Group entered into an 18-month bank loan contract with SHRB under which the Group borrowed RMB As of September 30, 2020, the outstanding balance of the borrowing was RMB which is to be repaid in October 2021. On May 28, 2020, the Group entered into an 18-month As of September 30, 2020, the outstanding of the borrowing was RMB which is to be repaid in November 2021. On June 13, 2017, the Group entered into a 10-year As of September 30, 2020, the net carrying value of the collateralized buildings was RMB 36,972. is to be repaid within one year, RMB to be repaid over one year. In the first quarter of 2019, the Group obtained a three-year revolving bank credit facility with SHRB under which the Group can draw-down up to RMB2,000,000, of which RMB1,000,000 is for rental installment loans, by February 2022 with annual interest rate of 7.5%. As of September 30, 2020, excluding the rental installment loan facility, the Group did not draw down bank borrowings. As of September 30, 2020, the tenants has drawn down rental instalment loans of RMB On June 27, 2019, the Group entered into a six-month required the Company to make a (2) Capital lease and other financing arrangement payable Future minimum lease payments required under the capital lease arrangements are as follows: September 30, 2020 2021 35,459 2022 20,029 2023 12,747 2024 10,473 2025 3,328 2026 and there after — 82,036 Less payment amount allocated to interest 8,606 Present value of capital lease obligation 73,430 Current portion of capital lease obligation 35,459 Long-term portion of capital lease obligation 37,971 73,430 Future payments required under other financing arrangements for the next 5 years as of September 30, 2020 were , , respectively. (3) Other short and long term payable Other long term payable mainly represents loans from certain third party entities with no fixed term at an annual interest rate of 5%. Other short term payable mainly represents loans from certain third party entities due within one year at an annual interest rate ranging between 5% and 6%. |
OPERATING COSTS
OPERATING COSTS | 12 Months Ended |
Sep. 30, 2020 | |
Operating Costs and Expenses [Abstract] | |
OPERATING COSTS | 7. OPERATING COSTS Operating costs include all direct costs incurred in the operation of the leased properties. For the years ended September 30, 2018 2019 2020 Rental cost 664,732 975,342 813,773 Depreciation expenses 145,768 207,814 256,056 Personnel cost 21,092 23,698 77,392 Cost for value-added services and others 66,367 98,138 56,194 Total 897,959 1,304,992 1,203,415 |
ASSET ACQUISITION
ASSET ACQUISITION | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
ASSET ACQUISITION | 8. ASSET ACQUISITION On July 22, 2020, the Company entered into a series of asset purchase agreements with Great Alliance Coliving Limited. and its affiliates (“Beautiful House”) to acquire assets, including approximately apartment rental contracts with it 349,665 associated with acquired assets . of shares of the Company’s Class A ordinary shares with total value of $42,673 (approximately RMB 289,733) , reflecting The number of shares to be issued is determined based on the total share consideration amount agreed and average closing price of the Company’s ADS of 90 days prior to the execution of the asset purchase agreements. The shares are payable in three instalments of 30%, 40% and 30% with lockup periods expiring on June 30, 2021, 2022 and 2023, respectively. A s of September 30, 2020, the Company made a cash payment of $5,800 (equivalent of RMB ) . There were no material direct transaction costs related to the transaction. The remaining cash consideration payable of $ (equivalent of RMB 165,808) and share consideration of RMB were recorded in the account of “ Payable for asset acquisition ” and “additional paid-in capital”, respectively. The Company accounted for the acquisition as an asset acquisition because the Company did not acquire substantive process from Beautiful House. The Company determined the estimated fair values using Level 3 inputs after review and consideration of relevant information, including contract value of apartment rental agreements and estimates made by management. The apartment rental agreements with both landlords and tenants were valued using the multiperiod excess earnings method and the trademarks were valued using the relief from royalty method. The fair value of apartment rental agreements and trademarks was RMB 289,591 and RMB 86,900, respectively. The total consideration of RMB 495,039, after deducting the liabilities of RMB 349,665 assumed in the asset acquisition, was allocated to identified assets on the basis of their relative fair value.The allocation is as follows: RMB Apartment rental agreements 649,733 Trademarks 194,971 Liabilities assumed by the Compan y ) 495,039 |
CONVERTIBLE NOTE, NET
CONVERTIBLE NOTE, NET | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTE, NET | 9. CONVERTIBLE NOTE, NET To finance the asset acquisition with Beautiful House (Note 8), the Company has executed a convertible note and warrant purchase agreement dated July 22, 2020 (the “Purchase Agreements”) with one investor which is controlled by one prin cipal $100,000 four-year five-year the (“July Notes”) (approximately RMB 95,403) s (approximately RMB 109,241) (“Series 2 Note”). The maturity date of the July Notes shall be July 29, 2024. (“September Notes”) (approximately RMB 2,424) (approximately RMB 5,748) these notes maturing Series 1 Note bears interest of 7.5% per annum payable in cash annually and another 7.5% per annum payable in cash on the maturity date. Series 2 Note bears interest of 3.5% per annum payable in cash annually and another 13.5% per annum payable in cash on the maturity date. In the event of a Fundamental Change, as defined in the Purchase Agreement, the interest rate increases to 25% per annum and the holders of the Notes can require the Company to redeem the outstanding principal and interest for cash. Each of the holders of the Notes at any time on or after the 41st day after the issuance date of the Notes and prior to the maturity date, at its option, may convert in whole but not in part the entire outstanding principal amount and the accrued and unpaid interest into ADSs. The conversion price is as follows: (1) $11.2508 per ADS for the July Notes and $10.1003 per ADS for September Notes, or (2) if the Company completes an ADS offering 50,000 The conversion price is subject to adjustment in the event of a Make Whole Fundamental Change, as defined in the Purchase Agreement. The Company may at its option, upon the delivery of a mandatory conversion notice to the holders of the Notes (the “Mandatory Conversion Notice”, and such date of delivery, the “Mandatory Conversion Date”), require the holders of the Notes to convert all the outstanding principal amount and all the accrued but unpaid share interest as of the Mandatory Conversion Date into the ADSs, in the event as defined , In addition, the Company issued to the holder of the Notes, warrants to purchase ADSs equal to 4% of the principal balance on the date of issuance and 4%, 6%, 7% and 8% of the principal amount of the Notes outstanding as of such anniversary dates. Each of the warrants expire five years after its respective issue date and has an exercise price equivalent to 110% of the volume weighted average price (“VWAP”) of the ADSs over the 60 trading days preceding the date of issuance of each warrant, subject to certain adjustments upon the occurrence of certain dilutive events. The proceeds from issuance of the Notes were allocated to the relative fair values of the Notes and warrants. The Company estimated fair value of July Notes and September Notes were RMB and RMB , respectively, using discount cash flow model, which took into consideration the term yields ranging between % and %. The Company estimated fair value of the warrants issued at RMB 4,630 and RMB 102, respectively, using the Black-Scholes valuation model, which took into consideration the underlying price of ordinary shares, a risk-free interest rate, expected term and expected volatility. As a result, the valuation of the warrant was categorized as Level 3 in accordance with ASC 820, “Fair Value Measurement”. The Company allocated proceeds totaling RMB 6,564 to the warrants which was recorded as an additional paid-in capital. The key assumption used in estimates are as follows: July 29, 2020 September 25, 2020 Terms of warrants 60 months 60 months Exercise price 11.4618 10.2214 Risk free rate of interest 22.552 % 22.609 % Dividend yield 0.00 % 0.00 % Annualized volatility of underlying stock 40.0 % 39.0 % The discounts of RMB 6,394 and RMB 170 on July Note and September Note, respectively, will be amortized over four years as additional interest expense. For the year ended September 0 A summary of warrants activity for the year ended September 30, 2020 was as follows: Number of shares Weighted average life Expiration dates Balance of warrants outstanding as of September 30, 2019 — Grants of Warrants on July 2 9 104,871 5 years July 29, 2025 Grants of Warrants on September 25, 2020 4,696 5 years September 25, 2025 Balance of warrants outstanding as of September 30, 2020 109,567 4.84 years The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions, but not as a result of future securities offerings at lower prices. The warrant s |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10 As of September 30, 2019 2020 Due to a rental service company (1) — 182,542 Tenant deposits 12,715 83,682 Payable to a constructor for leasehold improvements — 53,623 Other tax payable 41,577 51,832 Accrued utilities 94 22,513 Interest payable 4,333 13,435 Accrued payroll and welfare 10,467 10,451 Operation service payable — 6,602 Deferred rent 28,415 2,503 Others 1,691 16,235 Total 99,292 443,418 (1) As of September 30, 2020, the balance of due to a rental service company primarily represented the rental deposits and prepaid rental fee collected from tenants. The rental deposits and prepaid rental fee belonged to the rental service company, for which the Group provided apartment operation services since April 2020. |
PREFERRED SHARES
PREFERRED SHARES | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
PREFERRED SHARES | 1 1 SHARES Before the Reorganization in May 2015, there were RMB4,000, RMB10,000 and RMB30,000 equity interests in Q&K Fashion that were subscribed by shareholders during February 2012, August 2013 and February 2014, respectively (collectively “Series A equity with preference rights”). As part of the Reorganization, the Company issued 255,549,510 Series A non-redeemable A-1, A-2 A-3 non-redeemable non-redeemable non-redeemable non-redeemable paid-in In May 2015, the Company issued 160,000,000 series B convertible redeemable preferred shares at the price of US$0.125 per share to certain investors with a total consideration of US$20,000. The cash proceeds received was US$20,000, net of issuance costs of nil. In July 2017, the Company issued an aggregate number of 120,000,000 series C convertible redeemable preferred shares at the price of US$0.25 per share to certain investors with a total consideration of US$30,000. The cash proceeds received was US$28,200, net of issuance costs of US$1,800. In March 2018, the Company issued an aggregate number of 103,500,000 series C-1 In June 2019, the Company issued 273,360,850 series C-2 Each preferred share shall be convertible, at the option of the holder thereof, at any time into Class A ordinary shares. All outstanding Preferred Shares shall automatically be converted into Class A ordinary shares without the payment of any additional consideration, based on the then effective conversion rate at the time immediately upon (a) the occurrence of the qualified IPO, or (b) with respect to the Series A non-redeemable All the Preferred Shares have converted to ordinary shares upon IPO on November 7, 2019. As of September 30, 2020, the Company had no outstanding preferred shares. The significant terms of Series A non-redeemable C-1 Series C-2 Voting The holders of the Preferred Shares shall vote together as one class on all resolutions. The holder of Preferred Shares has the number of votes as equal to the number of Class A ordinary shares then issuable upon their conversion into Class A ordinary shares. Redemption rights • Series B convertible redeemable preferred shares At the request of the holders of Series B convertible redeemable preferred shares, the convertible redeemable preferred shares are redeemable at any time when the Company fails to complete a qualified IPO by the fourth anniversary of the Series B shares issue date or an IPO approval event occurs (i.e. the Series B shareholder becomes aware that the IPO will be subject to government approval and is not resolved within a set time period by written request of the Series B shareholder), at a redemption price at least equal to the higher of the subscription price plus an amount that gives a compounded annualized return of 12% per annum or the fair market value of such shares plus any and all declared but unpaid dividends. • Series C/C-1/C-2 At the request of the holders of Series C/C-1/C-2 There are no redemption preference rights for holders of Series A non-redeemable Liquidation Preference In the event of any voluntary or involuntary liquidation, Series C-2, C-1/C, nil The liquidation preference is exercised in the sequence of Series C-2 C/C-1 non-redeemable After distribution in full to the above preference shareholders, the remaining assets and funds of the Group that is legally available for distribution to the shareholders shall be distributed ratably amongst them in proportion to the number of ordinary shares held by them (on an as-converted In the event of any dissolution or winding up of the Group, sale, transfer, license, pledge or otherwise disposal of all, or substantially all, of the Company’s assets, changes in the control of the Company or invalidation/termination of the VIE Agreements (collectively “Deemed Liquidation Event”), the liquidation sequence and preference amount is also the same as above. Conversion Each preferred share shall be convertible, at the option of the holder thereof, at any time into Class A ordinary shares. All outstanding Preferred Shares shall automatically be converted into Class A ordinary shares without the payment of any additional consideration, based on the then effective conversion rate at the time immediately upon (a) the occurrence of the qualified IPO, or (b) with respect to the Series A non-redeemable Dividends The holders of the Preferred Shares and ordinary shares are entitled to the dividend pari passu based on the number of shares they own on an as-converted EBITDA performance targets for Series C, Series C-1 C-2 Along with the issuance of Preferred Shares, the Group contemporaneously entered into agreements with its holders of Series C, Series C-1 C-2 pre-agreed pre-agreed The Group believed that it was not probable EBITDA targets will be satisfied. The EBITDA feature was recorded separately as a contingent earn-out C-1 C-2 earn-out C-1 C-2 earn-out re-measured period-end, In addition to the Series C-2 pre-offering C-2 pre-determined pre-offering earn-out C-2 C-2 All the holders of the Series C-2, C-1 Accounting for Preferred Shares Given the key terms described above, the Group classified Series B, Series C, Series C-1 C-2 C-1 C-2 earn-out Holders of Series A non-redeemable non-redeemable Except for Series A non-redeemable pre-determined paid-in paid-in The following is the roll forward of the carrying amounts of mezzanine equity for the years ended September 30, 2018, 2019 and 2020, respectively: RMB Balance as of September 30, 2017 368,546 Issuance of Series C-1 139,952 Accretion on Series B convertible redeemable preferred shares to redemption value 43,818 Accretion on Series C convertible redeemable preferred shares to redemption value 29,038 Accretion on Series C-1 62,689 Balance as of September 30, 2018 644,043 Issuance of Series C-2 474,053 Accretion on Series B convertible redeemable preferred shares to redemption value 111,041 Accretion on Series C convertible redeemable preferred shares to redemption value 36,952 Accretion on Series C-1 33,681 Accretion on Series C-2 125,715 Balance as of September 30, 2019 1,425,485 Exercise of conversion of Series B convertible redeemable preferred shares (316,765 ) Exercise of conversion of Series C convertible redeemable preferred shares (272,633 ) Exercise of conversion of Series C-1 (236,320 ) Exercise of conversion of Series C-2 (599,767 ) Balance as of September 30, 2020 — The following is the roll-forward of the carrying amounts of the contingent earn-out RMB Balance as of September 30, 2017 44,856 Increase in accordance with Series C-1 45,180 Fair value change included in earnings (6,164 ) Balance as of September 30, 2018 83,872 Increase in accordance with Series C-2 55,949 Fair value change included in earnings (42,404 ) Balance as of September 30, 2019 97,417 Fair value change included in earnings (97,417 ) Fair value change included in earnings — |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 1 2 The Company 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 Company’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 Company. All the share information disclosed in this section refers to the shares of the Group the grantees are entitled through Yijia Inc. shares. The related expenses are reflected in the Group’s consolidated financial statements as share-based compensation expenses with an offset to additional paid-in 3 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 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, share-based compensation expense is recognized until the date of IPO. As of September 30, 2020, share options were vested or exercised. 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$0.31 (RMB2.00) per share. All grantees were restricted from transferring its exercised “lock-up lock-up , no share-based c ompensation expense is recognized until the date of IPO. As of September , , the Company had share options outstanding, vested and exercisable . Because the exercise price is out of money, the weighted average intrinsic value of these share options were RMB . Binomial options pricing model was applied in determining the estimated fair value of the options granted. The model requires the input of highly subjective assumptions including the estimated expected stock price volatility and, the exercise multiple for which employees are likely to exercise share options. The estimated fair value of the ordinary shares, at the option grants, was determined with assistance from an independent third party valuation firm. The Group’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented: April 2016 October 2016 July 2017 Risk-free rate of return 3.18 % 3.18 % 3.21 % Contractual life of option 10 years 10 years 8.4 years Estimated volatility rate 37 % 37 % 35 % Expected dividend yield 0 % 0 % 0 % Fair value of underlying ordinary shares US$ 0.03 US$ 0.04 US$ 0.05 A summary of option activity during the year ended September 30, 2018, 2019 and 2020 is presented below : Number of Options Exercise Price RMB Remaining Contractual Life Outstanding, as of September 30, 2017 70,000,000 2 8.73 Granted — — — Forfeited — — — Outstanding, as of September 30, 2018 70,000,000 2 7.73 Granted — — — Forfeited (1,780,000 ) 2 7.73 Outstanding, as of September 30, 2019 68,220,000 2 6.74 Granted — — — Exercised — — — Forfeited (26,470,000 ) 2 6.74 Outstanding, as of September 30, 2020 41,750,000 2 6.10 Vested or expected to vest as of September 30, 2020 41,750,000 2 6.10 The Group recognized the compensation cost for the stock options on a straight line basis over the requisite service periods. Given the vesting was contingent on the IPO, no share-based compensation expense is recognized until the date of the IPO. For the years ended September 30, 2018, 2019 and 2020, the Group recorded compensation expenses of RMB nil, RMB nil and RMB 16,045 in connection with the above stock options. Restricted Share Units (“RSU”) In 2017, the Group issued 15.99 million RSU to a consulting company, of which 5.2 million RSU vested immediately upon grant, and the Group has the right to repurchase the remaining 10.79 million RSU anytime at its discretion with nominal price before certain dates (“repurchase rights”). The Group determined RSU with repurchase rights are not considered issued until the expiration of such rights. At each of the expiration dates, the corresponding RSU are considered issued and vested immediately, and a measurement date has been reached. Under such arrangement, the Group recorded 2.6 million, 2.6 million, 2.8 million, 2.8 million and 2.6 million RSU at the measurement date fair value per share The fair value of RSU was determined by reference to the fair value of ordinary shares of the Group and was appraised by an independent valuation firm. The total expenses recognized in the consolidated statements of comprehensive loss for the aforementioned RSUs granted were RMB 2,252, RMB 8,173 and RMB nil, respectively for the years ended September 30, 2018, 2019 and 2020, respectively. |
LOSSES PER SHARE
LOSSES PER SHARE | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
LOSSES PER SHARE | 13. LOSSES PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the years indicated: For the years ended September 30, 2018 2019 2020 Numerator: Net loss attributable to Q&K International Group Limited (499,859 ) (498,242 ) (1,533,592 ) Deemed dividend (135,545 ) (307,389 ) — Net loss attributable to ordinary shareholders—basic and diluted (635,404 ) (805,631 ) (1,533,592 ) Denominator: Weighted average ordinary shares outstanding—basic and diluted 409,403,915 430,450,490 1,351,127,462 Net loss per share—basic and diluted (1.55 ) (1.87 ) (1.14 ) For the years ended September 30, 2018, 2019 and 2020, respectively, potential ordinary shares from assumed conversion of 639,049,510, 912,410,360 and 0 preferred shares and 0, 0, and 2,789,720 convertible notes as well as 70,000,000, 68,220,000 and 41,750,000 options and 0, 0 and 109,567 warrants to purchase the Company’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 | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 1 4 INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company, Q&K International Group Limited is not subject to tax on income or capital gain. BVI Islands Under the current laws of the British Virgin Islands (“BVI”), the Company, QK365.com Inc. incorporated in BVI is not subject to tax on income or capital gain. Hong Kong QingKe (China) Limited is subject to Hong Kong profit tax. The applicable tax rate for the first Hong Kong dollar (“HKD$”) $2,000 of assessable profits is 8.25% and assessable profits above HKD$2,000 will continue to be subject to the rate of 16.5% for corporations in Hong Kong, effective from the year of assessment 2018/2019. No Hong Kong profit tax has been provided as the Group has not had assessable profit that was earned in or derived from Hong Kong during the years presented. United States of America The Group’s subsidiary in the U.S. is registered in the state of Delaware and is subject to a flat U.S. federal corporate income tax rate PRC Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. Tax expense is comprised of the following: For the years ended September 30, 2018 2019 2020 Current tax 2,393 63 13 Deferred tax — — — Total 2,393 63 13 A reconciliation between the effective income tax rate and the PRC statutory income tax rate are as follows: For the years ended September 30, 2018 2019 2020 PRC statutory tax rate 25 % 25 % 25 % Effect of different tax rates of group entities operating in other jurisdictions and preferential tax rates of group entities — — 0.5 % Tax effect of other expenses that are not deductible in determining taxable profit (1.2 %) (2.4 %) (0.3 %) Tax effect of loss on disposal of long-term assets — — (7.6 %) Effect of change in valuation allowance (24.3 %) (22.6 %) (17.6 %) Effective tax rate (0.5 %) (0.0 %) (0.0 %) The principal components of the Group’s deferred income tax assets as of September 30, 2019 and 2020 are as follows: As of September 30, 2019 2020 Deferred tax assets: Net losses carryforward 166,302 268,477 Impairment loss on long-term assets — 263,774 Other accrued expenses 160,075 21,322 Deferred rent — 53,757 Advertising expenses 12,587 12,592 Valuation allowance (338,964 ) (619,922 ) Total deferred tax assets — — Movement of the valuation allowance is as follows: Balance as of September 30, 2017 112,256 Addition 120,935 Write off — Balance as of September 30, 2018 233,191 Addition 105,773 Write off — Balance as of September 30, 2019 338,964 Addition 280,958 Write off — Balance as of September 30, 2020 619,922 As of were provided, respectively. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carryforward periods, the Group’s experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more likely than not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carryforward periods provided for in the tax law. As of September 30, 2020, the Group had tax loss carryforwards of RMB 1,080,172 According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB100 is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The Group’s PRC subsidiaries are therefore subject to examination by the PRC tax authorities from 2015 through 2020 on non-transfer In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises (“FIEs”) earned after January 1, 2008, are subject to a 10% withholding income tax. In addition, under tax treaty between the PRC and Hong Kong, if the foreign investor is incorporated in Hong Kong and qualifies as the beneficial owner, the applicable withholding tax rate is reduced to 5%, if the investor holds at least 25% in the FIE, or 10%, if the investor holds less than 25% in the FIE. A deferred tax liability should be recognized for the undistributed profits of PRC subsidiaries unless the Company has sufficient evidence to demonstrate that the undistributed dividends will be reinvested and the remittance of the dividends will be postponed indefinitely. The Group plans to indefinitely reinvest undistributed profits earned from its China subsidiaries in its operations in the PRC. Therefore, no withholding income taxes for undistributed profits of the Group’s subsidiaries have been provided as of September 30, 2019 and 2020. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting basis over tax basis in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free Aggregate undistributed earnings of the Group’s PRC subsidiaries and VIE that are available for distribution was not material as of September 30, 2019 and 2020. |
STATUTORY RESERVES AND NET REST
STATUTORY RESERVES AND NET RESTRICTED ASSETS | 12 Months Ended |
Sep. 30, 2020 | |
Statutory Reserves And Restricted Assets [Abstract] | |
STATUTORY RESERVES AND NET RESTRICTED ASSETS | 1 5 The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the VIE and subsidiaries of the VIE incorporated in PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The consolidated results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. Under PRC law, the Company’s subsidiaries and consolidated VIEs located in the PRC (collectively referred as the (“PRC entities”) are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and a staff welfare and bonus fund. The PRC entities are required to allocate at least 10% of their after tax profits on an individual company basis as determined under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such reserve has reached 50% of registered capital on an individual company basis. In addition, the registered capital of the PRC entities is also restricted. Amounts restricted including paid-in capital and statutory reserve funds as determined pursuant to PRC Laws were RMB1,332,226 and RMB 930,525 as of September 30, 2019 and 2020 respectively. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 1 6 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 Shanghai Yijia Chuangye Investment Center LLP (“Yijia Chuangye”) An entity controlled by Mr. Jin Guangjie (“Founder and CEO of the Group”) Shanghai Laiguan Property Management Co., Ltd. (“Laiguan”) An entity controlled by certain shareholders of the Group Shanghai Ziniu Property Management Co., Ltd. (“Ziniu Property”) An entity controlled by certain shareholders of the Group Shanghai Q&K Fashion Life Co., Ltd. (“Q&K Fashion”) An entity controlled by Founder and CEO of the Group Shanghai Qingke Robot Technology Co., Ltd. (“Robot”) (i) An affiliate of Founder and CEO of the Group Shanghai Yijia Property Management Co., Ltd. (“Yijia Property”) An entity controlled by certain shareholders of the Group Shanghai Xulong Trading Co., Ltd. (“Xulong”) (ii) An entity controlled by the parents of Founder and CEO of the Group Shanghai Youzhen Information Technology Co., Ltd. (“Youzhen”) An entity controlled by the parents of Founder and CEO of the Group Shanghai Qingji Property Management Co., Ltd. (“Qingji”) An entity controlled by certain shareholders of the Group Key Space(S) Ptd. Ltd. (“Key Space”) (i) Robot ceased to be a related party of the Group in April 2019. (ii) Xulong ceased to be a related party of the Group in March 2019. The Group entered into the following transactions with its related parties: For the years ended September 30, 2018, 2019 and 2020, services provided by the related parties were RMB210,963, RMB139,026 and RMB 47,464, respectively : For the years ended September 30, 2018 2019 2020 Purchases of property and equipment from Xulong. 77,676 12,205 — Labor outsourcing service expense to Laiguan 48,861 43,003 25,059 Labor outsourcing service expense to Qingji. 19,258 41,180 22,405 Value-added service cost to Robot 42,352 28,336 — Storage and logistic service expense to Xulong 14298 4,582 — Marketing service expense to Xulong. 8,364 9,720 — Research and development expense to Robot 154 — — Total 210,963 139,026 47,464 As stated in Note 9, in July and September 2020, the Group issued convertible notes in exchange f or As of September 30, 2019 and 2020, amounts due from related parties were RMB5,587 and RMB168, respectively, and details are as follows: As of September 30, 2019 2020 Yijia Chuangye (i) 4,400 — Laiguan 1,024 — Youzhen. 125 125 Others 38 43 Total 5,587 168 (i) Represents related party loans to Yijia Chuangye, which were interest free and payable on demand. During the year ended September 30, 2020, the Company fully collected the balance from the related party as well as the balance due from Laiguan. As of September 30, 2019 and 2020, amounts due to related parties were RMB 3,121 and RMB 6,594, respectively, and details are as follows: As of September 30, 2019 2020 Yijia Property. 2,366 4,156 Qingji 743 1,539 Laiguan — 882 Others 12 17 Total 3,121 6,594 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 1 7 (a) Operating lease commitments The Group has entered into lease agreements for properties which it operates. Such leases are classified as operating leases. Future minimum lease payments under non-cancellable For the years ending September 30 , 2021 1,028,730 2022 909,053 2023 782,914 2024 651,316 2025 539,349 Thereafter 846,837 Total 4,758,199 (b) Purchase Commitments As of September 30, 2020, the Group’s did not have commitments related to leasehold improvements and installation of equipment. (c) Contingencies During the year ended September 30, 2020, the Group, via short message notification, early terminated certain apartment rental agreements with landlords. The Group estimated the contingent compensation expenses due to landlords as follows: • Certain landlords had disputes on the early termination and entered into legal proceedings against the Group for compensation aggregating RMB 5 211 • Certain landlords had disputes but did not enter into legal proceedings against the Company. These landlords had rights to file legal proceedings against the Group within 3 years from the short message notification, for a maximum compensation of RMB 51,924, which is three times of the rental agreement value. However the Group estimated the likelihood of the legal proceeding as reasonably possible though these report date. In addition, the compensation amount will be negotiated with each individual landlord, the amount of compensation cannot be reasonably estimated as of the date of report date. As of September 30, 2020, the Group did not accrue the contingent liability in the balance sheet. • Certain landlords did not reply to the Group’s short message within three months, which legally implied that they agreed with the termination, and the Group is not obliged to compensation for these landlords. The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. Except for the above mentioned contingencies, 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 1 8 In October and December 2020, the Company issued the two instalment s K ey S , , respectively. In November 2020, the Company entered into one bank borrowing extension agreement with SHRB, pursuant to which the bank extended due date of one borrowing with the principal of RMB 132,000 to October 1 In December 2020, the Company entered into two new bank borrowing agreements with SHRB, pursuant to which the Company borrowed RMB 25,929 and RMB8,998, respectively. The Company used the bank borrowings to repay the outstanding bank borrowings. The Group evaluated subsequent events through February 16, 2021, the date on which these financial statements were issued, and the management determined that other than those that have been disclosed in the consolidated financial statements and subsequent events disclosed above, no subsequent events that require recognition and disclosure in the consolidated financial statements. |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | 12 Months Ended |
Sep. 30, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | 1 9 Pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, condensed financial information is required as to the financial position, changes in financial position and results of operations of a parent company as of the same date and for the same period for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company does not include condensed financial information as to the changes in deficit as such financial information is the same as the consolidated statements of changes in shareholders’ deficit. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries and consolidated VIEs. For the parent company, the Company records its investments in subsidiaries and consolidated VIEs under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as ‘‘Investments in subsidiaries and consolidated VIE and VIE’s subsidiaries’’ and the subsidiaries and consolidated VIEs’ losses as ‘‘Equity in losses of subsidiaries and consolidated VIE and VIE’s subsidiaries’’ on the Condensed Statements of Comprehensive Loss. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, the losses of subsidiaries and consolidated VIEs regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses. For the years ended September 30, 2018, 2019 and 2020, there were no m Translations of balances in the additional financial information of Parent Company—Financial Statements Schedule I from RMB into US$ as of and for the year ended September 30, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00= RMB 6.7896, as set forth in H.10 statistical release of the Federal Reserve Board on September 30, 2020. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into United States dollars at that rate on September 30, 2020, or at any other rate. PARENT COMPANY (Renminbi in thousands, except share data and per share data, unless otherwise stated) As of September 30, 2019 2020 RMB RMB USD Assets Cash and cash equivalents 101,157 6,015 886 Other receivables, deposits and other assets 1 — — Amounts due from subsidiaries and consolidated VIE and VIE’s subsidiaries 522,124 — — Total assets 623,282 6,015 886 Liabilities Short-term borrowings — 221,328 32,598 Accrued expenses and other current liabilities — 13,126 1,933 Contingent earn-out 97,417 — — Convertible notes — 206,251 30,377 Deficit of investments in subsidiaries and consolidated VIE and VIE’s subsidiaries 1,346,408 — — Amounts due to subsidiaries and consolidated VIE and VIE’s subsidiaries — 1,569,388 231,146 Total liabilities 1,443,825 2,010,093 296,054 Series B convertible redeemable preferred shares (US$0.00001 par value, 160,000,000 shares authorized, issued and outstanding; liquidation value of RMB233,350 and RMB nil as of September 30, 2019 and 2020, respectively) 316,765 — — Series C convertible redeemable preferred shares (US$0.00001 par value, 120,000,000 shares authorized, issued and outstanding; liquidation value of RMB287,231 and RMB nil as of September 30, 2019 and 2020, respectively) 272,633 — — Series C-1 236,320 — — Series C-2 convertible redeemable preferred shares (US$0.00001 par value, 273,360,850 shares authorized, issued and outstanding; liquidation value of RMB595,962 and 2019 and , respectively 599,767 — — Total mezzanine equity 1,425,485 — — Shareholders’ deficit: Ordinary shares 27 92 14 Series A non-redeemable 35,777 — — Treasury stock (298,110 ) (43,907 ) Additional paid-in capital — 2,085,099 307,102 Accumulated deficits (2,275,924 ) (3,809,516 ) (561,081 ) Accumulated other comprehensive (loss) (5,908 ) 18,357 2,704 Total shareholders’ deficit (2,246,028 ) (2,004,078 ) (295,168 ) Total liabilities, mezzanine equity and shareholders’ deficit 623,282 6,015 886 PARENT COMPANY (Renminbi in thousands, unless otherwise stated) For the Years Ended September 30, 2018 2019 2020 2020 RMB RMB RMB USD Selling, general and administrative expenses (5,247 ) (15,888 ) (37,557 ) (5,530 ) Interest income (expenses) 2,096 1,761 (42,507 ) (6,260 ) Fair value change of contingent earn-out 6,164 42,404 97,417 14,348 Income before equity in losses of subsidiaries and consolidated VIEs and VIE’s subsidiaries 3,013 28,277 17,353 2,558 Equity in losses of subsidiaries and consolidated VIE and VIE’s subsidiaries (502,935 ) (526,614 ) (1,550,994 ) (228,439 ) Net loss (499,922 ) (498,337 ) (1,533,641 ) (225,881 ) Foreign currency translation adjustments 4,551 (7,621 ) 24,265 3,574 Deemed dividend (135,547 ) (307,389 ) — — Comprehensive loss (630,918 ) (813,347 ) (1,509,376 ) (222,307 ) CONDENSED STATEMENTS OF CASH FLOWS (Renminbi in thousands, unless otherwise stated) For the Years Ended September 30, 2018 2019 2020 2020 RMB RMB RMB USD Net cash used in (3,805 ) (20,149 ) (17,452 ) (2,570 ) Net cash used in investing activities (341,213 ) (460,663 ) (478,685 ) (70,503 ) Net cash provided by financing activities 185,133 530,002 401,227 60,987 Effect of exchange rate changes 3,455 2,087 (232 ) (1,180 ) Net (decrease) increase in cash and cash equivalents (156,430 ) 51,277 (95,142 ) (13,266 ) Cash and cash equivalents and restricted cash at the beginning of the year 206,310 49,880 101,157 14,152 Cash and cash equivalents and restricted cash at the end of the year 49,880 101,157 6,015 886 |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group’s ability to generate cash flows from operations, and the Group’s ability to arrange adequate financing arrangements, to support its working capital requirements. |
Going concern | Going concern The Group has been incurring losses from operations since its inception. Accumulated deficits amounted to RMB September 30 , In addition, the Company’s operations have been affected by the outbreak and spread of the coronavirus disease 2019 (COVID-19), which in March 2020, was declared a pandemic by the World Health Organization. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Company’s businesses have been negatively impacted by the COVID-19 coronavirus outbreak to a certain extent. Due to the outbreak of COVID-19, in early February 2020, the Chinese government required the nationwide closure of many business activities in the PRC to prevent the spread of COVID-19 and protect public health. During this period, the Company adopted a defensive strategy after a prudent assessment of the broader macroeconomic downturn by consolidating internal resources, further improving operating efficiencies and focusing on asset quality improvement rather than aggressive expansion. During the year ended September 30, 2020, the and the rental spread margin before discount for rental prepayments decreased as . These factors raise substantial 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, issuance of convertible notes, principal shareholder’s financial support. The Group will focus on the following activities: • In July 2020, the Company has executed a convertible note and warrant purchase agreement with two investors (Note 9 several • In December 2020, the Company entered into two new bank borrowing agreements with Shanghai Huarui Bank (the “SHRB”), pursuant to which the Company borrowed RMB 25,929 and RMB8,998, respectively. The Company used the bank borrowings to repay the outstanding bank borrowings; • In July and November 2020, the Company entered into two bank borrowing extension agreements with SHRB, pursuant to which the bank extended due date of one borrowing with the principal March of 2022, and due date of one borrowing with the principal of RMB October 1 • In February 2021, a principal shareholder of the Company, has agreed to consider to provide necessary financial support in the form of debt and/or equity, to the Group to enable the Group to meet its other liabilities and commitments as they become due for at least twelve months from the issuance date of this consolidated financial statements. However, future financing requirements will depend on many factors, including the scale and pace of the expansion of the Group’s apartment network, efficiency in apartment operation, including apartment renovation and pricing, the expansion of the Group’s sales and marketing activities, and potential investments in, or acquisitions of, businesses or technologies. Inability to access financing on favorable terms in a timely manner or at all would materially and adversely affect the Group’s business, results of operations, financial condition, and growth prospects. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated variable interest entity and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. To comply with the PRC law and regulations which restrict foreign ownership of companies that provide value-added telecommunication services in the PRC, Q&K Investment Consulting entered into VIE Agreements with Q&K E-Commerce and Q&K E-Commerce and The following is a summary of the key VIE Agreements: Shareholder Voting Proxy Agreement Q&K Investment Consulting, Q&K E-Commerce and Q&K E-Commerce entered Q&K E-Commerce irrevocably or her attorney-in-fact to exercise Q&K E-Commerce, such Spousal Consent Letters The spouse of one shareholder of the VIE who holds 10.47% equity interest in Q&K E-Commerce signed Q&K E-Commerce shares Q&K E-Commerce shares Exclusive Technology Service Agreement Q&K Investment Consulting and Q&K E-Commerce entered Q&K E-Commerce with Q&K E-Commerce shall Q&K E-Commerce agrees Q&K E-Commerce also Q&K E-Commerce’s request Exclusive Option Agreement Q&K Investment Consulting, Q&K E-Commerce and Q&K E-Commerce entered Q&K E-Commerce and Q&K E-Commerce. The Q&K E-Commerce as Q&K E-Commerce irrevocably law. Q&K E-Commerce or Q&K E-Commerce or Q&K E-Commerce granted Q&K E-Commerce’s assets Q&K Investment Consulting may transfer any of its rights or obligations under this agreement to a third party after notifying Q&K E-Commerce and Q&K E-Commerce shall Q&K E-Commerce also Q&K E-Commerce to of Q&K E-Commerce from Equity Pledge Agreement Q&K Investment Consulting, Q&K E-Commerce and Q&K E-Commerce entered Q&K E-Commerce has Q&K E-Commerce to Q&K E-Commerce of Q&K E-Commerce or Q&K E-Commerce agrees Q&K E-Commerce and The Group believes that the contractual arrangements with the VIE are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the business and operating licenses of the Company’s PRC subsidiaries and VIE; • discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiaries and VIE; • limit the Group’s business expansion in China by way of entering into contractual arrangements; • impose fines or other requirements with which the Company’s PRC subsidiaries and VIE may not be able to comply; • require the Company or the Company’s PRC subsidiaries or VIE to restructure the relevant ownership structure or operations; or • restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China. The imposition of any of these penalties may result in a material adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIE or the right to receive their economic benefits, the Group would no longer be able to consolidate the financial results of the VIE. The following financial statement amounts and balances of the VIE and its subsidiaries As of September 30, 2019 2020 RMB RMB USD ASSETS Cash and cash equivalents 55,926 15,227 2,243 Restricted cash 91,015 8,887 1,309 Accounts receivable 1,306 1,943 286 Amounts due from related parties 5,587 168 25 Prepaid rent and deposit 127,096 51,281 7,553 Advances to suppliers 64,028 32,122 4,731 Other current assets 146,316 44,400 6,539 Property and equipment, net 1,170,446 358,022 52,731 Intangible assets, net 1,240 222,123 32,715 Land use rights 10,734 10,448 1,539 Other assets — 57,024 8,399 Total assets 1,673,694 801,645 118,070 Liabilities Accounts payable 277,103 294,469 43,371 Amounts due to related parties 3,121 6,594 971 Deferred revenue 78,540 152,619 22,478 Short-term debt 319,103 540,808 79,653 Rental installment loans 756,749 54,505 8,028 Deposits from tenants 163,203 82,191 12,105 Accrued expenses and other current liabilities 93,908 912,513 134,399 Long-term debt 428,345 464,920 68,475 Long-term deferred rent 387,739 212,054 31,232 Total liabilities 2,507,811 2,720,673 400,712 For the years ended September 30 2018 2019 2020 RMB RMB RMB USD Net revenues 889,937 1,233,770 1,207,963 177,914 Net loss (251,555 ) (177,738 ) (1,500,305 ) (220,971 ) For the years ended September 30 2018 2019 2020 RMB RMB RMB USD Net cash provided by operating activities 10,964 393,847 72,293 10,648 Net cash used in investing activities (515,360 ) (351,450 ) (99,172 ) (14,606 ) Net cash provided by (used in) financing activities 411,219 39,567 (95,948 ) (14,132 ) The consolidated VIE and VIE’s subsidiaries contributed 100% of the Group’s consolidated revenues for the years ended September 30, 2018, 2019 and 2020. As o There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIE. However, if the VIE were ever to need financial support, the Group may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE. There are no assets held in the VIE and its subsidiaries that can be used only to settle obligations of the VIE and its subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE and its subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the VIE. Relevant PRC laws and regulations restrict the VIE from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 15 for disclosure of restricted net assets. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include the useful lives and impairment of property and equipment, valuation allowance of deferred tax assets, share-based compensation, contingent earn-out non-redeemable |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use that which have original maturities of three months or less when purchased. |
Restricted cash | Restricted cash Restricted cash mainly represents the Group’s deposits to the bank as a form of security with respect to the Group’s debt and tenants’ repayment |
Accounts receivable | Accounts receivable Accounts receivable mainly consist of rental receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the credit risk of specific customers. In evaluating the credit risk of specific customers, the Group considers several factors, including the age of the balance, the customers’ payment history and their current credit worthiness, and current economic trends. |
Property and equipment, net | Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and impairment losses. The renovations and interest cost incurred during construction are capitalized. Depreciation of property and equipment is provided using the straight-line method over their expected useful lives. The expected useful lives are as follows: Leasehold improvements Shorter of the lease term or their estimated useful lives Buildings 45 years Furniture, fixtures and equipment 5-8 Motor vehicles 8 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive loss as the difference between the net sales proceeds and the carrying amount of the underlying asset. |
Capitalization of interest | Capitalization of interest Interest cost incurred on funds used to construct leasehold improvements during the active construction period is capitalized. The interest capitalized is determined by applying the borrowing interest rate to the average amount of accumulated capital expenditures for the assets under construction during the period. Total interest expenses incurred were RMB113,917 and RMB 134,092 for the years ended September 30, 2019 and 2020, respectively, out of which the capitalized amount were RMB19,542 and nil, respectively. |
Intangible assets, net | Intangible assets, net On July 22, 2020, the Company entered into a series of asset purchase agreements with Great Alliance Coliving Limited. and its affiliates (“Beautiful House”) to acquire assets, including approximately 72,000 apartment rental contracts with leasehold improvements attached to them, and trademarks of Beautiful House. In addition, the Company also assumed liabilities associated with acquired assets. The Company accounted for the acquisition as an asset acquisition because the Company did not acquire substantive process from Beautiful House. The total consideration, after deducting the liabilities assumed in the asset acquisition, was allocated to identified apartment rental contracts and trademarks on the basis of their relative fair value. See Note 8. Purchased intangible assets are mainly comprised of software. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years |
Land use rights | Land use rights Land use rights, which are all located in the PRC, are recorded at cost and amortized on a straight-line basis over the remaining term of the land certificates, which is between 30 to 50 years. Amortization expense of land use rights for the years ended September 30, 2018, 2019 and 2020 amounted to RMB286, RMB286 and RMB286, respectively. |
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. The Group performed an impairment test of its long-lived assets associated with certain apartments due to the continued underperformance relative to the projected operating results, and recognized impairment losses of RMB , RMB and RMB during the years ended September , , and , respectively. |
Capital lease and other financing arrangement | Capital lease and other financing arrangement Leases of leasehold improvements or furniture, fixtures and equipment that transfer to the Group substantially all of the risks and rewards of ownership by the end of the lease term are classified as capital leases. The leasehold improvements and liability are measured initially at an amount equal to the lower of their fair value or the present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under capital leases are apportioned between the finance expense and the reduction of the outstanding lease liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the lease liability. The Company started to cooperate with a rental service company to source and renovate apartments since August 2018. For certain identified newly sourced apartments, the rental service company reimburses the Company for costs incurred for the renovation. The Company then makes payments to the rental service company in installments equal to the reimbursed renovation costs plus interest and tax over a period of five years. At the end of the five-year period, the ownership of the renovation will be transferred to the Company. The Company accounts for this arrangement with the rental service company as a capital lease. As of September 30, 2020, the Company ha d payable of RMB 73,430 Under the same arrangement above, the Company also sells leasehold improvements and furniture, fixtures and equipment of certain existing apartments to the rental service company at carrying value and simultaneously leases them back. Such transaction fails sales and lease-back accounting and is accounted for as a financing arrangement. The proceeds received from the rental service company are reported as other financing arrangement payable. As of September 30, 2020, the Company has RMB other financing arrangement payable. The underlying leasehold improvements and furniture, fixtures and equipment are with aggregate initial value of RMB and carrying value of RMB as of September 30, 2020. |
Contingent earn-out liabilities | Contingent earn-out The Group records contingent earn-out C-1 earn-out C-1 earn-out and RMB , respectively. See Note 11. |
Lease accounting with tenants | Lease accounting with tenants The Group sources apartments from landlords and converts them into standardized furnished rooms to lease to tenants seeking affordance residences in China. Revenues are primarily derived from the lease payments from its tenants and are recorded net of tax. The Group typically enters into 12 to 26-month leases with tenants and a majority of which have a lock-in period of 12 months or longer. The lock-in lock-in lock-in In April 2020, the Group started to modify arrangements with a rental service company (See Capital lease and other financing arrangement) The Future rentals expected to be collected from outstanding leases existing as of September 30, 2020 totaled , for ing l Rental incentives Tenants who prepay rent are entitled to rental discounts. Tenants who prepay rent of at least the first six months of the lease term can enjoy a % rental discount, and tenants who prepay at least the first twelve months of lease term rental can enjoy a % rental discount (subject to a RMB limit per month). Such incentives are only applicable during the lock-in , RMB and RMB of rental incentives for the years ended September 30, 2018, 2019 and 2020, respectively. Rental installment loan arrangement In order to encourage tenants to make advance payments, the Group cooperates with various financial institution partners to facilitate rental installment loans for its tenants, who apply for rental installment loans directly with these financial institutions. The financial institutions approve or decline the rental installment loans based on the tenants credit profile, and approval of the rental installment loans are not guaranteed to the tenants at lease inception. If the loans are approved by the financial institution partners, the proceeds, which represent the total rental payments for the period covered under the lease agreement, are remitted to the Group by way of the tenant’s entrustment loan. The proceeds would then be applied to the tenants’ rental payments on monthly basis. The Group records the entire prepayment as rental installment loans. Tenants repay the loan principal in monthly installments directly to the financial institutions which equals to the monthly rental payment. The Group pays installment loan interests on behalf of the tenants and recognizes such payments as interest expense in the consolidated statements of comprehensive loss. The Group also provides guarantee to these financial institutions with respect to the tenants’ repayment of the loans. In the event that the tenants default on the repayment or early terminate the lease agreements, the Group must return the remaining prepayments to the financial institutions within a prescribed period of time. Under the rental installment loan scheme, the Group has full control of the entire installment loan proceeds and the security deposits collected from the tenants at lease inception are usually sufficient to cover for the delinquent payments from default. As such, the Group determines that guarantee liability to be for the years ended September 30, 2019 and 2020. Impact on cash flows For rental installment loans received directly from financial institutions, the Group determines the substance of the arrangement as akin to a debt from its tenants, and as such, this portion was classified as a cash inflow from financing activities within the Group’s consolidated statements of cash flows. During the lease term, constructive receipts and disbursements are recognized on a monthly basis by recognizing the repayment of rental installment loans as a financing cash outflow and the receipt of monthly rental income as an operating cash inflow. Rental prepayments received directly from tenants were recorded as deferred revenue in the consolidated balance sheets and classified as a cash inflow from operating activities. |
Lease accounting with landlords | Lease accounting with landlords The Group leases apartments from landlords usually for a period of five three 90- 120 non-compounding Rental expense to the landlords recorded in consolidated statements of comprehensive losses were RMB755,380, RMB1,003,572 and RMB 813,773 for the years ended September 30, 2018, 2019 and 2020, respectively. |
Value-added services and others | Value-added services and others The Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”) on October 1, 2019, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 605 and therefore there was no material changes. In accordance with ASC 606, revenues are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company also evaluates whether it is appropriate to record the gross amount of product sales. When the Company is a principal, that the Company obtains control of the specified goods before they are transferred to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled to in exchange for the specified goods transferred. Revenues are recorded net of value-added taxes. For the year ended September 30, 2020, the Group generated revenues from provision of value-added services. Value-added services and others primarily consist of fees received from the tenants from the Group’s provision of internet connection and utility services as part of the lease agreement. The service fees from tenants are fixed in the agreements and is collected on a monthly basis. The Croup recognized on a monthly basis during the period of the lease term. The service fees are recognized on a gross basis as the Group is the primary obligor in provision of such services and has discretion in establishing transaction prices. |
Pre-operation expenses | Pre-operation The Group expenses certain costs incurred in connection with apartment pre-operation |
Selling and marketing expenses | Selling and marketing expenses Sales and marketing expenses consist primarily of online and offline marketing expenses, promotion expenses, staff costs of sales personnel and other related incidental expenses that are incurred indirectly to attract or retain tenants for the Group. Advertising expenses incurred were RMB35,270, RMB39,583 and RMB 10,773 for the years end September 30, 2018, 2019 and 2020, respectively. |
Research and development expenses | Research and development expenses Research and development expenses include payroll expenses, employee benefits, and other headcount-related expenses associated with platform development and big data analysis to support the Group’s business operations. |
Employee benefit expenses | Employee benefit expenses As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. The total expenses the Group incurred for the plan were RMB17,953, RMB20,051 and RMB 18,283 for the years ended September 30, 2018, 2019 and 2020, respectively. |
PRC value-added taxes and related taxes | PRC value-added taxes and related taxes The Group is subject to value-added taxes at the rate of 6%, 9% and 13% , education surtax and urban maintenance and construction tax, on the services provided in the PRC. Education surtax and urban maintenance and construction tax are primarily levied based on revenue at applicable rates and are recorded as a reduction of revenues. |
Income taxes | Income taxes Current income taxes are provided on the basis of profit before income tax for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. The Group follows the asset and liability method of accounting for income taxes. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such determination, the management considers all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step |
Treasury shares | Treasury shares The Company accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury shares account on the consolidated balance sheets. At retirement of the treasury shares, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional paid-in capital (up to the amount credited to the additional paid-in capital upon original issuance of the shares) and retained earnings. For the year ended September 30, 2020, the Group repurchased 77,250,000 ordinary shares from certain major investors in the IPO, through cash payment |
Foreign currency translation | Foreign currency translation The reporting currency of the Group is the Renminbi (“RMB”). The functional currency of the Group’s entities incorporated in Cayman Islands, the United States and Hong Kong is the United States dollar (“US dollar”) and the functional currency of the Group’s PRC subsidiaries is RMB. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into the functional currency at the applicable rates of exchange prevailing on the day transactions occurred. Transaction gains and losses are recognized in the consolidated statements of comprehensive loss. The financial statements of the Group’s non PRC entities are translated from their respective functional currency into RMB. Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss in the consolidated statements of comprehensive loss. The financial records of the Group’s subsidiaries are maintained in local currencies, which are the functional currencies. |
Convenience translation | Convenience translation The Group’s business is primarily conducted in the PRC and all of the revenues are denominated in RMB. The financial statements of the Group are stated in RMB. Translations of balances in the consolidated balance sheet, and the related consolidated statements of comprehensive loss, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended September 30, 2020 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and, account receivables and amounts due from related parties. All of the Group’s cash and cash equivalents and restricted cash are held with financial institutions that Group management believes to be high credit quality. The Group conducts credit evaluations on its tenants and generally require deposits from tenants as collateral. The Group periodically evaluates the creditworthiness of the existing tenants in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. |
Other risks | Other risks The Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company’s operations. Coronavirus (“COVID-19”) The Company’s operations have been affected by the outbreak and spread of the coronavirus disease 2019 (COVID-19), COVID-19 COVID-19 Due to the outbreak of COVID-19, COVID-19 the average month-end occupancy and the rental spread margin before discount for rental prepayments decreased as of COVID-19 . As of the filing date of the consolidated financial statements, the spread of COVID-19 COVID-19 pre-covid COVID-19 |
Fair value | Fair value The Group defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, amounts due from related parties, accounts payable, amounts due to related parties, short-term debt, rental installment loans, deposits from tenants, other current liabilities, long-term debt, convertible note, and contingent earn-out liabilities. The following table summarizes the fair value of the Group’s financial liabilities that are accounted for at fair value on a recurring basis, by level within the fair value hierarchy, as of September 30, 2019 and 2020: Fair Value Measurements at Reporting Date Using Years Ended September 30, Description Fair Value as of September 30 RMB Quoted Prices in Active Markets for Identical Assets (Level 1) RMB Significant Other Observable Inputs (Level 2) RMB Significant Unobservable Inputs (Level 3) RMB Total Gain for the Year Ended RMB 2019 Contingent earn-out 97,417 97,417 42,404 2020 liabilities — — 97,417 The Group determines the fair value with the help from third party professional valuation specialists, and the assumptions used in estimating fair value require significant judgment. The use of different assumptions and judgments could result in a materially different estimate of fair value. Key inputs in determining the fair value of the contingent earn-out earn-out 1 earn-out The following table presents the Group’s assets measured at fair value on a non-recurring Fair Value Measurements at Reporting Date Using Years Ended September 30, Description Fair Value September 30 RMB Quoted Prices in Active Markets for Identical Assets (Level 1) RMB Significant Other Observable Inputs (Level 2) RMB Significant Unobservable Inputs (Level 3) RMB Total Loss for the Year Ended RMB 2018 Property and 103,399 103,399 50,614 2019 equipment 124,993 124,993 46,213 2020 93,635 93,635 313,354 2020 Apartment 134,452 134,452 425,341 2020 Trademarks 86,900 86,900 108,071 Fair value of the property and equipment was determined by the Group 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 property and equipment are 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, which were % and % for the year ended September 30, 2018, and % and % for the year ended September 30, 2019, and % and % for the year ended September 30, 2020, respectively. As a result of reduced expectations of future cash flows from certain leased apartments, the Group determined that the property and equipment was not fully recoverable and consequently recorded impairment charges of The Group acquired from Great Alliance Coliving Limited. and its affiliates (“Beautiful House”) certain assets, including approximately apartment rental contracts and leasehold improvements attached to the apartments, and trademarks of Beautiful House. The Company 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. • The apartment rental agreements with both landlords and tenants were valued using the multiperiod excess earnings method, 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. The revenue growth rate and the discount rate were the significant unobservable inputs used in the fair value measurement, which were negative 12.5% and 19% , and • the trademarks were valued using the relief from royalty method, which incorporated certain assumptions including projected revenues contributed by trademarks, royalty savings and projected trends of operating results. The revenue growth rate and the discount rate were the significant unobservable inputs used in the fair value measurement, which were negative 10% and 19% As of September 30, 2020, the Group reviewed the fair value of the apartment rental agreements and trademarks 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 property and equipment are 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, which were negative 12.5% and 11% for the year ended September 30, 2020. As a result of reduced expectations of future cash flows from certain leased apartments, the Group determined that neither apartment rental contracts nor trademarks were fully recoverable and consequently recorded impairment charges of RMB425,341 and RMB 108,071, respectively, for the year ended September 30, 2020. The financial instruments primarily including cash and cash equivalents, restricted cash, account receivables, amounts due from related parties, account payables, amounts due to related parties, short-term debt, rental installment loans, deposits from tenants, other liabilities, are carried at cost which approximates their fair value due to the short-term nature of these instruments. The convertible note and long-term debt approximates their fair values, because the bearing interest rate approximates market interest rate, and market interest rates have not fluctuated significantly since the commencement of loan contracts signed. |
Share-based compensation | Share-based compensation The Group recognizes share-based compensation in the consolidated statements of comprehensive loss based on the fair value of equity awards on the date of the grant, with compensation expenses recognized over the period in which the grantee is required to provide service to the Group in exchange for the equity award. Vesting of certain equity awards are based on the completion of initial public offering (“IPO”) and has a continued employment provision for a period of time following the grant date. The share-based compensation expenses have been categorized as either general and administrative expenses, research and development expenses or selling and marketing expenses, depending on the job functions of the grantees. For the years ended September 30, 2018, 2019 and 2020, the Group recognized share-based compensation expenses of RMB2,252, RMB8,173 and RMB 16,045, respectively, in the consolidated statements of comprehensive loss. |
Losses per share | Losses per share Basic losses per share are computed by dividing net loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. The Group’s preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted two-class two-class Diluted loss per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Potential ordinary shares, including preferred shares, convertible notes, share options and warrants are excluded from the computation in income periods should their effects be anti-dilutive. The Group had convertible redeemable and non-redeemable notes non-redeemable two-class as-if |
Segment reporting | Segment reporting The Group uses management approach to determine operation segment. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (‘‘CODM’’) for making decisions, allocation of resource and assessing performance. The Group’s CODM has been identified as the Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single operating segment. The Group’s long-lived assets are all located in the PRC and all of the Group’s revenues are derived from within the PRC. Therefore, no geographical segments are presented. |
Asset Acquistion | Asset acquisition Referring to FASB ASC Topic 805-10-55-5, the Company applied two steps (including step 1, screen test and step 2, evaluation of process and input) in evaluating whether the acquisition is an asset acquisition or a business combination. The Company measures and recognizes asset acquisitions that are not deemed to be business combinations based on the cost to acquire the assets, which includes transaction costs. Goodwill is not recognized in asset acquisitions, any excess consideration transferred over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, right-of-use No. 2018-10 No. 2018-11, No. 2018-10 2016-02 No. 2018-11 2019-10, 2019-10 2016-02. 2016-02 2018-11 right-of-use The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In June 2016, the FASB issued ASU 2016-13, Credit 2019-10 2016-13. In August 2018, the FASB released ASU 2018-13, 2018-13 2018-13 In December 2019, the FASB issued ASU No. 2019-12, Income 2019-12 2019-12 In June 2018, the FASB issued ASU 2018-07, “Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. An entity should apply the requirements of ASC 718 to non-employee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The amendments specify that ASC 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The Company adopted the new guidance beginning on October 1, 2019. The adoption of this guidance did not have a material impact on our financial position, results of operations and cash flows. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of significant subsidiaries, variable interest entity and the significant subsidiaries of the VIE | As of September 30, 2020, the Company’s significant subsidiaries, variable interest entity (the “VIE”) and the significant subsidiaries of the VIE are as follows: Entity Date of incorporation Place of incorporation Percentage of legal/beneficial ownership by the Company Principal activities Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding QingKe (China) Limited July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting” or the “WFOE”) April 2, 2015 PRC 100 % Holding and Operating Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd. (“Q&K May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment Management Co., Ltd June 19, 2020 PRC 100 % Operating VIE: Shanghai Qingke E-Commerce E-commerce” August 2, 2013 PRC 100 % Holding and Operating Subsidiaries of the VIE: Shanghai Qingke Equipment Rental Co., Ltd. (“Q&K Rental”) March 17, 2015 PRC 100 % Operating Shanghai Qingke Public Rental Housing Leasing Management Co., Ltd. (“Qingke Public Rental”) November 5, 2014 PRC 100 % Operating Suzhou Qingke Information Technology Co., Ltd. (“Suzhou Qingke”) April 3, 2014 PRC 100 % Operating |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 VIE and its subsidiaries As of September 30, 2019 2020 RMB RMB USD ASSETS Cash and cash equivalents 55,926 15,227 2,243 Restricted cash 91,015 8,887 1,309 Accounts receivable 1,306 1,943 286 Amounts due from related parties 5,587 168 25 Prepaid rent and deposit 127,096 51,281 7,553 Advances to suppliers 64,028 32,122 4,731 Other current assets 146,316 44,400 6,539 Property and equipment, net 1,170,446 358,022 52,731 Intangible assets, net 1,240 222,123 32,715 Land use rights 10,734 10,448 1,539 Other assets — 57,024 8,399 Total assets 1,673,694 801,645 118,070 Liabilities Accounts payable 277,103 294,469 43,371 Amounts due to related parties 3,121 6,594 971 Deferred revenue 78,540 152,619 22,478 Short-term debt 319,103 540,808 79,653 Rental installment loans 756,749 54,505 8,028 Deposits from tenants 163,203 82,191 12,105 Accrued expenses and other current liabilities 93,908 912,513 134,399 Long-term debt 428,345 464,920 68,475 Long-term deferred rent 387,739 212,054 31,232 Total liabilities 2,507,811 2,720,673 400,712 For the years ended September 30 2018 2019 2020 RMB RMB RMB USD Net revenues 889,937 1,233,770 1,207,963 177,914 Net loss (251,555 ) (177,738 ) (1,500,305 ) (220,971 ) For the years ended September 30 2018 2019 2020 RMB RMB RMB USD Net cash provided by operating activities 10,964 393,847 72,293 10,648 Net cash used in investing activities (515,360 ) (351,450 ) (99,172 ) (14,606 ) Net cash provided by (used in) financing activities 411,219 39,567 (95,948 ) (14,132 ) |
Summary of expected useful lives of property and equipment, net | The expected useful lives are as follows: Leasehold improvements Shorter of the lease term or their estimated useful lives Buildings 45 years Furniture, fixtures and equipment 5-8 Motor vehicles 8 years |
Schedule of estimated useful lives of intangible asset: | Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years |
Summary of fair value of financial assets and liabilities accounted for at fair value on a recurring basis | The following table summarizes the fair value of the Group’s financial liabilities that are accounted for at fair value on a recurring basis, by level within the fair value hierarchy, as of September 30, 2019 and 2020: Fair Value Measurements at Reporting Date Using Years Ended September 30, Description Fair Value as of September 30 RMB Quoted Prices in Active Markets for Identical Assets (Level 1) RMB Significant Other Observable Inputs (Level 2) RMB Significant Unobservable Inputs (Level 3) RMB Total Gain for the Year Ended RMB 2019 Contingent earn-out 97,417 97,417 42,404 2020 liabilities — — 97,417 |
Summary of assets measured at fair value on a non-recurring basis | The following table presents the Group’s assets measured at fair value on a non-recurring Fair Value Measurements at Reporting Date Using Years Ended September 30, Description Fair Value September 30 RMB Quoted Prices in Active Markets for Identical Assets (Level 1) RMB Significant Other Observable Inputs (Level 2) RMB Significant Unobservable Inputs (Level 3) RMB Total Loss for the Year Ended RMB 2018 Property and 103,399 103,399 50,614 2019 equipment 124,993 124,993 46,213 2020 93,635 93,635 313,354 2020 Apartment 134,452 134,452 425,341 2020 Trademarks 86,900 86,900 108,071 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of other current assets | As of September 30, 2019 2020 Due from a rental service company ( 1 43,786 52,410 Deductible input v 93,008 35,660 Due from a service provider (2) — 9,501 Others 9,765 4,232 Total 146,559 101,803 (1) As of September 30, 2020 and 2019, the balance due from a rental service company represented the reimbursement renovation costs due from the rental service company. The Company started to cooperate with a rental service company to source and renovate apartments since August 2018. For certain identified newly sourced apartments, the rental service company reimburses the Company for costs incurred for the renovation. The Company then makes payments to the rental service company in installments equal to the reimbursed renovation costs plus interest and tax over a period of five years. (2) Upon asset acquisition with Beautiful House (Note 8), the Group engaged a third party service provider to provide apartment operation services to the Group. To support the operation services, the Company made interest free loans to the service provider and the loans are repayable on demand. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment, net consist of the following: As of September 30, 2019 2020 Cost: 1,914,041 725,834 Buildings 40,167 40,167 Leasehold improvements 1,308,310 449,637 Furniture, fixtures and equipment used in apartments 542,855 212,483 Vehicle 1,710 3,043 Office furniture, fixtures and equipment 20,999 20,504 Less: Accumulated depreciation (551,154 ) (217,582 ) Less: Impairment (208,328 ) (223,284 ) Construction in progress 30,752 73,054 Property and equipment, net 1,185,311 358,022 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible assets, net as follows | Intangible assets, net consist of the following: As of September 30, 2019 2020 Cost: 2,275 832,223 Apartment rental contracts — 634,977 Trademarks — 194,971 Software 2,275 2,275 Less: Accumulated amortization (1,027 ) (76,688 ) Less: Impairment — (533,412 ) Intangible assets, net 1,248 222,123 |
Details of Group's amortization expenses for the five years | The following table sets forth the Group’s amortization expenses for the five years since September 30, 2020: Amortization Year ending September 30, 2021 60,880 Year ending September 30, 2022 46,343 Year ending September 30, 2023 36,079 Year ending September 30, 2024 24,150 Year ending September 30, 2025 and thereafter 54,671 222,123 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of short-term and long-term debt | The short-term and long-term debt as of September 30, 2019 and 2020 were as follows: As of September 30, 2019 2020 Short-term debt: Short-term bank borrowings (1) 65,000 176,752 Long-term bank borrowings, current portion (1) 150,653 159,721 Capital lease and other financing arrangement payable, current portion (2) 103,450 201,835 Other short-term payable (3) — 223,828 Subtotal 319,103 762,136 Long-term debt: Long-term bank borrowings, non-current (1) 102,473 196,682 Capital lease and other financing arrangement payable, non-current (2) 298,682 242,719 Other long term payable (3) 27,190 25,519 Subtotal 428,345 464,920 Total 747,448 1,227,056 |
Summary of future minimum lease payments required under the capital lease arrangements | Future minimum lease payments required under the capital lease arrangements are as follows: September 30, 2020 2021 35,459 2022 20,029 2023 12,747 2024 10,473 2025 3,328 2026 and there after — 82,036 Less payment amount allocated to interest 8,606 Present value of capital lease obligation 73,430 Current portion of capital lease obligation 35,459 Long-term portion of capital lease obligation 37,971 73,430 |
OPERATING COSTS (Tables)
OPERATING COSTS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Operating Costs and Expenses [Abstract] | |
Summary of operating costs | Operating costs include all direct costs incurred in the operation of the leased properties. For the years ended September 30, 2018 2019 2020 Rental cost 664,732 975,342 813,773 Depreciation expenses 145,768 207,814 256,056 Personnel cost 21,092 23,698 77,392 Cost for value-added services and others 66,367 98,138 56,194 Total 897,959 1,304,992 1,203,415 |
ASSET ACQUISITION (Tables)
ASSET ACQUISITION (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Summary of fair value analysis of the net assets acquired | The allocation is as follows: RMB Apartment rental agreements 649,733 Trademarks 194,971 Liabilities assumed by the Compan y ) 495,039 |
CONVERTIBLE NOTE, NET (Tables)
CONVERTIBLE NOTE, NET (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of key assumption used in estimates of warrants | The key assumption used in estimates are as follows: July 29, 2020 September 25, 2020 Terms of warrants 60 months 60 months Exercise price 11.4618 10.2214 Risk free rate of interest 22.552 % 22.609 % Dividend yield 0.00 % 0.00 % Annualized volatility of underlying stock 40.0 % 39.0 % |
Summary of warrants activity | A summary of warrants activity for the year ended September 30, 2020 was as follows: Number of shares Weighted average life Expiration dates Balance of warrants outstanding as of September 30, 2019 — Grants of Warrants on July 2 9 104,871 5 years July 29, 2025 Grants of Warrants on September 25, 2020 4,696 5 years September 25, 2025 Balance of warrants outstanding as of September 30, 2020 109,567 4.84 years |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Table) | 12 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | As of September 30, 2019 2020 Due to a rental service company (1) — 182,542 Tenant deposits 12,715 83,682 Payable to a constructor for leasehold improvements — 53,623 Other tax payable 41,577 51,832 Accrued utilities 94 22,513 Interest payable 4,333 13,435 Accrued payroll and welfare 10,467 10,451 Operation service payable — 6,602 Deferred rent 28,415 2,503 Others 1,691 16,235 Total 99,292 443,418 (1) As of September 30, 2020, the balance of due to a rental service company primarily represented the rental deposits and prepaid rental fee collected from tenants. The rental deposits and prepaid rental fee belonged to the rental service company, for which the Group provided apartment operation services since April 2020. |
PREFERRED SHARES (Tables)
PREFERRED SHARES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of roll forward of carrying amounts of mezzanine equity | The following is the roll forward of the carrying amounts of mezzanine equity for the years ended September 30, 2018, 2019 and 2020, respectively: RMB Balance as of September 30, 2017 368,546 Issuance of Series C-1 139,952 Accretion on Series B convertible redeemable preferred shares to redemption value 43,818 Accretion on Series C convertible redeemable preferred shares to redemption value 29,038 Accretion on Series C-1 62,689 Balance as of September 30, 2018 644,043 Issuance of Series C-2 474,053 Accretion on Series B convertible redeemable preferred shares to redemption value 111,041 Accretion on Series C convertible redeemable preferred shares to redemption value 36,952 Accretion on Series C-1 33,681 Accretion on Series C-2 125,715 Balance as of September 30, 2019 1,425,485 Exercise of conversion of Series B convertible redeemable preferred shares (316,765 ) Exercise of conversion of Series C convertible redeemable preferred shares (272,633 ) Exercise of conversion of Series C-1 (236,320 ) Exercise of conversion of Series C-2 (599,767 ) Balance as of September 30, 2020 — |
Summary of roll-forward of carrying amounts of contingent earn-out liability | The following is the roll-forward of the carrying amounts of the contingent earn-out RMB Balance as of September 30, 2017 44,856 Increase in accordance with Series C-1 45,180 Fair value change included in earnings (6,164 ) Balance as of September 30, 2018 83,872 Increase in accordance with Series C-2 55,949 Fair value change included in earnings (42,404 ) Balance as of September 30, 2019 97,417 Fair value change included in earnings (97,417 ) Fair value change included in earnings — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 shares US$ 0.03 US$ 0.04 US$ 0.05 |
Summary of option activity | A summary of option activity during the year ended September 30, 2018, 2019 and 2020 is presented below : Number of Options Exercise Price RMB Remaining Contractual Life Outstanding, as of September 30, 2017 70,000,000 2 8.73 Granted — — — Forfeited — — — Outstanding, as of September 30, 2018 70,000,000 2 7.73 Granted — — — Forfeited (1,780,000 ) 2 7.73 Outstanding, as of September 30, 2019 68,220,000 2 6.74 Granted — — — Exercised — — — Forfeited (26,470,000 ) 2 6.74 Outstanding, as of September 30, 2020 41,750,000 2 6.10 Vested or expected to vest as of September 30, 2020 41,750,000 2 6.10 |
LOSSES PER SHARE (Tables)
LOSSES PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 years indicated: For the years ended September 30, 2018 2019 2020 Numerator: Net loss attributable to Q&K International Group Limited (499,859 ) (498,242 ) (1,533,592 ) Deemed dividend (135,545 ) (307,389 ) — Net loss attributable to ordinary shareholders—basic and diluted (635,404 ) (805,631 ) (1,533,592 ) Denominator: Weighted average ordinary shares outstanding—basic and diluted 409,403,915 430,450,490 1,351,127,462 Net loss per share—basic and diluted (1.55 ) (1.87 ) (1.14 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of tax expense | Tax expense is comprised of the following: For the years ended September 30, 2018 2019 2020 Current tax 2,393 63 13 Deferred tax — — — Total 2,393 63 13 |
Summary of reconciliation between effective income tax rate and PRC statutory income tax rate | A reconciliation between the effective income tax rate and the PRC statutory income tax rate are as follows: For the years ended September 30, 2018 2019 2020 PRC statutory tax rate 25 % 25 % 25 % Effect of different tax rates of group entities operating in other jurisdictions and preferential tax rates of group entities — — 0.5 % Tax effect of other expenses that are not deductible in determining taxable profit (1.2 %) (2.4 %) (0.3 %) Tax effect of loss on disposal of long-term assets — — (7.6 %) Effect of change in valuation allowance (24.3 %) (22.6 %) (17.6 %) Effective tax rate (0.5 %) (0.0 %) (0.0 %) |
Summary of principal components of deferred income tax assets | The principal components of the Group’s deferred income tax assets as of September 30, 2019 and 2020 are as follows: As of September 30, 2019 2020 Deferred tax assets: Net losses carryforward 166,302 268,477 Impairment loss on long-term assets — 263,774 Other accrued expenses 160,075 21,322 Deferred rent — 53,757 Advertising expenses 12,587 12,592 Valuation allowance (338,964 ) (619,922 ) Total deferred tax assets — — |
Summary of movement of valuation allowance | Movement of the valuation allowance is as follows: Balance as of September 30, 2017 112,256 Addition 120,935 Write off — Balance as of September 30, 2018 233,191 Addition 105,773 Write off — Balance as of September 30, 2019 338,964 Addition 280,958 Write off — Balance as of September 30, 2020 619,922 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related party relationship with the group | 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 Shanghai Yijia Chuangye Investment Center LLP (“Yijia Chuangye”) An entity controlled by Mr. Jin Guangjie (“Founder and CEO of the Group”) Shanghai Laiguan Property Management Co., Ltd. (“Laiguan”) An entity controlled by certain shareholders of the Group Shanghai Ziniu Property Management Co., Ltd. (“Ziniu Property”) An entity controlled by certain shareholders of the Group Shanghai Q&K Fashion Life Co., Ltd. (“Q&K Fashion”) An entity controlled by Founder and CEO of the Group Shanghai Qingke Robot Technology Co., Ltd. (“Robot”) (i) An affiliate of Founder and CEO of the Group Shanghai Yijia Property Management Co., Ltd. (“Yijia Property”) An entity controlled by certain shareholders of the Group Shanghai Xulong Trading Co., Ltd. (“Xulong”) (ii) An entity controlled by the parents of Founder and CEO of the Group Shanghai Youzhen Information Technology Co., Ltd. (“Youzhen”) An entity controlled by the parents of Founder and CEO of the Group Shanghai Qingji Property Management Co., Ltd. (“Qingji”) An entity controlled by certain shareholders of the Group Key Space(S) Ptd. Ltd. (“Key Space”) (i) Robot ceased to be a related party of the Group in April 2019. (ii) Xulong ceased to be a related party of the Group in March 2019. |
Summary of transactions with related parties | For the years ended September 30, 2018, 2019 and 2020, services provided by the related parties were RMB210,963, RMB139,026 and RMB 47,464, respectively : For the years ended September 30, 2018 2019 2020 Purchases of property and equipment from Xulong. 77,676 12,205 — Labor outsourcing service expense to Laiguan 48,861 43,003 25,059 Labor outsourcing service expense to Qingji. 19,258 41,180 22,405 Value-added service cost to Robot 42,352 28,336 — Storage and logistic service expense to Xulong 14298 4,582 — Marketing service expense to Xulong. 8,364 9,720 — Research and development expense to Robot 154 — — Total 210,963 139,026 47,464 As stated in Note 9, in July and September 2020, the Group issued convertible notes in exchange f or As of September 30, 2019 and 2020, amounts due from related parties were RMB5,587 and RMB168, respectively, and details are as follows: As of September 30, 2019 2020 Yijia Chuangye (i) 4,400 — Laiguan 1,024 — Youzhen. 125 125 Others 38 43 Total 5,587 168 (i) Represents related party loans to Yijia Chuangye, which were interest free and payable on demand. During the year ended September 30, 2020, the Company fully collected the balance from the related party as well as the balance due from Laiguan. As of September 30, 2019 and 2020, amounts due to related parties were RMB 3,121 and RMB 6,594, respectively, and details are as follows: As of September 30, 2019 2020 Yijia Property. 2,366 4,156 Qingji 743 1,539 Laiguan — 882 Others 12 17 Total 3,121 6,594 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of future minimum lease payments under non-cancellable operating lease agreements | Future minimum lease payments under non-cancellable For the years ending September 30 , 2021 1,028,730 2022 909,053 2023 782,914 2024 651,316 2025 539,349 Thereafter 846,837 Total 4,758,199 |
CONDENSED FINANCIAL STATEMENT_2
CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED BALANCE SHEETS | PARENT COMPANY (Renminbi in thousands, except share data and per share data, unless otherwise stated) As of September 30, 2019 2020 RMB RMB USD Assets Cash and cash equivalents 101,157 6,015 886 Other receivables, deposits and other assets 1 — — Amounts due from subsidiaries and consolidated VIE and VIE’s subsidiaries 522,124 — — Total assets 623,282 6,015 886 Liabilities Short-term borrowings — 221,328 32,598 Accrued expenses and other current liabilities — 13,126 1,933 Contingent earn-out 97,417 — — Convertible notes — 206,251 30,377 Deficit of investments in subsidiaries and consolidated VIE and VIE’s subsidiaries 1,346,408 — — Amounts due to subsidiaries and consolidated VIE and VIE’s subsidiaries — 1,569,388 231,146 Total liabilities 1,443,825 2,010,093 296,054 Series B convertible redeemable preferred shares (US$0.00001 par value, 160,000,000 shares authorized, issued and outstanding; liquidation value of RMB233,350 and RMB nil as of September 30, 2019 and 2020, respectively) 316,765 — — Series C convertible redeemable preferred shares (US$0.00001 par value, 120,000,000 shares authorized, issued and outstanding; liquidation value of RMB287,231 and RMB nil as of September 30, 2019 and 2020, respectively) 272,633 — — Series C-1 236,320 — — Series C-2 convertible redeemable preferred shares (US$0.00001 par value, 273,360,850 shares authorized, issued and outstanding; liquidation value of RMB595,962 and 2019 and , respectively 599,767 — — Total mezzanine equity 1,425,485 — — Shareholders’ deficit: Ordinary shares 27 92 14 Series A non-redeemable 35,777 — — Treasury stock (298,110 ) (43,907 ) Additional paid-in capital — 2,085,099 307,102 Accumulated deficits (2,275,924 ) (3,809,516 ) (561,081 ) Accumulated other comprehensive (loss) (5,908 ) 18,357 2,704 Total shareholders’ deficit (2,246,028 ) (2,004,078 ) (295,168 ) Total liabilities, mezzanine equity and shareholders’ deficit 623,282 6,015 886 |
CONDENSED STATEMENTS OF COMPREHENSIVE LOSS | PARENT COMPANY (Renminbi in thousands, unless otherwise stated) For the Years Ended September 30, 2018 2019 2020 2020 RMB RMB RMB USD Selling, general and administrative expenses (5,247 ) (15,888 ) (37,557 ) (5,530 ) Interest income (expenses) 2,096 1,761 (42,507 ) (6,260 ) Fair value change of contingent earn-out 6,164 42,404 97,417 14,348 Income before equity in losses of subsidiaries and consolidated VIEs and VIE’s subsidiaries 3,013 28,277 17,353 2,558 Equity in losses of subsidiaries and consolidated VIE and VIE’s subsidiaries (502,935 ) (526,614 ) (1,550,994 ) (228,439 ) Net loss (499,922 ) (498,337 ) (1,533,641 ) (225,881 ) Foreign currency translation adjustments 4,551 (7,621 ) 24,265 3,574 Deemed dividend (135,547 ) (307,389 ) — — Comprehensive loss (630,918 ) (813,347 ) (1,509,376 ) (222,307 ) |
CONDENSED STATEMENTS OF CASH FLOWS | CONDENSED STATEMENTS OF CASH FLOWS (Renminbi in thousands, unless otherwise stated) For the Years Ended September 30, 2018 2019 2020 2020 RMB RMB RMB USD Net cash used in (3,805 ) (20,149 ) (17,452 ) (2,570 ) Net cash used in investing activities (341,213 ) (460,663 ) (478,685 ) (70,503 ) Net cash provided by financing activities 185,133 530,002 401,227 60,987 Effect of exchange rate changes 3,455 2,087 (232 ) (1,180 ) Net (decrease) increase in cash and cash equivalents (156,430 ) 51,277 (95,142 ) (13,266 ) Cash and cash equivalents and restricted cash at the beginning of the year 206,310 49,880 101,157 14,152 Cash and cash equivalents and restricted cash at the end of the year 49,880 101,157 6,015 886 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of significant subsidiaries, variable interest entity and the significant subsidiaries of the VIE (Detail) | 12 Months Ended |
Sep. 30, 2020 | |
QK365.com INC. (BVI) | Subsidiaries | |
Date of incorporation | Sep. 29, 2014 |
Place of incorporation | BVI |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding |
QingKe (China) Limited | Subsidiaries | |
Date of incorporation | Jul. 7, 2014 |
Place of incorporation | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding |
Q&K Investment Consulting Co., Ltd. | Subsidiaries | |
Date of incorporation | Apr. 2, 2015 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding and Operating |
Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd | Subsidiaries | |
Date of incorporation | May 13, 2019 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
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 | 100.00% |
Principal activities | Operating |
Shanghai Qingke E-Commerce Co., Ltd. | Variable Interest Entity | |
Date of incorporation | Aug. 2, 2013 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding and Operating |
Shanghai Qingke Equipment Rental Co., Ltd. | Subsidiaries Vairable Interest Entity | |
Date of incorporation | Mar. 17, 2015 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Operating |
Shanghai Qingke Public Rental Housing Leasing Management Co., Ltd. | Subsidiaries Vairable Interest Entity | |
Date of incorporation | Nov. 5, 2014 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Operating |
Suzhou Qingke Information Technology Co., Ltd. | Subsidiaries Vairable Interest Entity | |
Date of incorporation | Apr. 3, 2014 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Operating |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||
Nov. 30, 2019CNY (¥)shares | Sep. 30, 2020$ / shares | Nov. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019$ / shares | Nov. 08, 2007 | |
Ordinary shares, par value | $ 0.00001 | $ 0.00001 | |||
IPO [Member] | |||||
Stock listed for IPO | ¥ 44,534 | $ 289,027 | |||
ADS [Member] | IPO [Member] | |||||
Common stock, shares unissued | shares | 2,700,000 | 2,700,000 | |||
Ordinary shares, par value | $ 0.00001 | ||||
Number of common shares for each unit of american depository receipt | 30 | 30 | |||
Sale of stock, price per share | $ 17 | ||||
ADS [Member] | Over-Allotment Option [Member] | |||||
Ordinary shares, par value | $ 0.00001 | ||||
Number of common shares for each unit of american depository receipt | 30 | 30 | |||
Number of shares issued in transaction | shares | 405,000 | ||||
Sale of stock, price per share | $ 17 | ||||
Jin Guangjie | |||||
Previous percentage held by founder | 50.00% |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jul. 31, 2020CNY (¥) | Jul. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Oct. 31, 2020CNY (¥) | Oct. 31, 2020USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Jul. 31, 2020CNY (¥) | Jul. 31, 2020USD ($) | Sep. 30, 2020CNY (¥)Rentalcontractsshares | Sep. 30, 2020USD ($)Rentalcontractsshares | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | Sep. 30, 2022CNY (¥) | Sep. 30, 2021CNY (¥) | Nov. 30, 2020CNY (¥) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2017CNY (¥) |
Accumulated deficits | ¥ (3,809,516) | ¥ (3,809,516) | ¥ (2,275,924) | $ (561,081) | |||||||||||||||
Net cash used in operating activities | (54,841) | $ (8,078) | 88,189 | ¥ 117,048 | |||||||||||||||
Working capital | 1,758,736 | 1,758,736 | 1,100,604 | ||||||||||||||||
Interest expense | 134,092 | 113,917 | |||||||||||||||||
Interest expense, capitalized | 0 | 19,542 | |||||||||||||||||
Amortization expense of land use rights | 286 | 286 | 286 | ||||||||||||||||
Contingent earn-out liabilities | 0 | 0 | 97,417 | 83,872 | ¥ 44,856 | ||||||||||||||
Property and equipment, gross | 725,834 | 725,834 | 1,914,041 | ||||||||||||||||
Property and equipment, accumulated depreciation | 217,582 | 217,582 | 551,154 | ||||||||||||||||
Impairment loss | 846,766 | $ 124,715 | 46,213 | 50,614 | |||||||||||||||
Future rentals from outstanding leases that are within the lock-in period | 510,077 | 510,077 | |||||||||||||||||
Rental incentives | 12,921 | ¥ 12,921 | 72,367 | 61,317 | |||||||||||||||
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 | 5.00% | 5.00% | |||||||||||||||||
Deferred rent, current | 2,503 | ¥ 2,503 | 28,415 | ||||||||||||||||
Long-term deferred rent | ¥ 212,054 | 212,054 | 387,739 | $ 31,232 | |||||||||||||||
Rental expense | 813,773 | 1,003,572 | 755,380 | ||||||||||||||||
Advertising expenses | 10,773 | 39,583 | 35,270 | ||||||||||||||||
Expenses incurred for the plan | ¥ 18,283 | 20,051 | 17,953 | ||||||||||||||||
Convenience translation rate of USD1.00 | 6.7896 | 6.7896 | 6.7896 | ||||||||||||||||
Share-based compensation expenses | ¥ 16,045 | $ 2,363 | ¥ 8,173 | 2,252 | |||||||||||||||
Tax benefit likely of being realized up on settlement percentage | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||
Guarantee liability | ¥ 0 | ¥ 0 | ¥ 0 | ||||||||||||||||
Significant unrecognized uncertain tax positions | 0 | 0 | 0 | ||||||||||||||||
Capital lease other financing arrangement | ¥ 73,430 | ¥ 73,430 | |||||||||||||||||
Warrants | 4 years 10 months 2 days | 4 years 10 months 2 days | 4 years 10 months 2 days | ||||||||||||||||
Treasury stocks acquired | shares | 77,250,000 | 77,250,000 | |||||||||||||||||
Treasury Stock, Value | ¥ 298,110 | ¥ 298,110 | $ 43,907 | ||||||||||||||||
Payments of debt issuance costs | ¥ 8,172 | $ 1,200 | ¥ 155,393 | $ 22,818 | |||||||||||||||
Proceeds from Issuance of Debt | ¥ 237,096 | $ 34,848 | |||||||||||||||||
Forecast [Member] | |||||||||||||||||||
Future rentals from outstanding leases that are within the lock-in period | ¥ 1,654 | ¥ 508,423 | |||||||||||||||||
Fair Value, Nonrecurring | |||||||||||||||||||
Impairment loss | 313,354 | ¥ 46,213 | ¥ 50,614 | ||||||||||||||||
Apartment rental agreements loss | 425,341 | ||||||||||||||||||
Trademarks, loss | ¥ 108,071 | ||||||||||||||||||
Great Alliance Co living Limited And Affiliates [Member] | |||||||||||||||||||
Business combination revenue growth rate for valuation of trademarks acquired | 10.00% | 10.00% | |||||||||||||||||
Business combination discount rate for valuation of trademarks acquired | 19.00% | 19.00% | 19.00% | ||||||||||||||||
Great Alliance Co living Limited And Affiliates [Member] | Rental Agreement With Landlord [Member] | |||||||||||||||||||
Business combination revenue growth rate for rental agreements | 12.50% | 12.50% | |||||||||||||||||
Business combination discount rate for measuring rental agreements acquired | 19.00% | 19.00% | |||||||||||||||||
Great Alliance Co living Limited And Affiliates [Member] | Rental Agreement With Tenant [Member] | |||||||||||||||||||
Business combination revenue growth rate for rental agreements | 12.50% | 12.50% | |||||||||||||||||
Business combination discount rate for measuring rental agreements acquired | 19.00% | 19.00% | |||||||||||||||||
Rental Contracts [Member] | |||||||||||||||||||
Number of Reporting Units | Rentalcontracts | 25,375 | 25,375 | |||||||||||||||||
Rental Contracts [Member] | Great Alliance Co living Limited And Affiliates [Member] | |||||||||||||||||||
Number of Businesses Acquired | Rentalcontracts | 72,000 | 72,000 | |||||||||||||||||
Share Repurchase [Member] | |||||||||||||||||||
Payment for the repurchase of initial public offering | ¥ 248,859 | ||||||||||||||||||
Share Repurchase [Member] | Common Stock [Member] | |||||||||||||||||||
Repurchase of ordinary shares issued during initial public offer | shares | 77,250,000 | 77,250,000 | |||||||||||||||||
Renewal Term One [Member] | |||||||||||||||||||
Lessee operating lease term of renewal | 2 years | 2 years | 2 years | ||||||||||||||||
Renewal Term Two [Member] | |||||||||||||||||||
Lessee operating lease term of renewal | 3 years | 3 years | 3 years | ||||||||||||||||
Convertible Note And Warrant Purchase Agreement [Member] | |||||||||||||||||||
Debt term | 4 years | 4 years | |||||||||||||||||
Warrants | 5 years | 5 years | |||||||||||||||||
Convertible Notes Payable [Member] | |||||||||||||||||||
Convertible notes issued | ¥ 49,251 | ||||||||||||||||||
Convertible Notes Payable [Member] | Share Repurchase [Member] | |||||||||||||||||||
Convertible notes issued | 7,232 | ||||||||||||||||||
IPO [Member] | ADS [Member] | |||||||||||||||||||
Treasury Stock, Value | ¥ 298,110 | ¥ 298,110 | |||||||||||||||||
Share price | $ / shares | $ 17 | ||||||||||||||||||
Education surtax | |||||||||||||||||||
Value-added taxes rate | 6.00% | 6.00% | 6.00% | ||||||||||||||||
Urban Maintenance | |||||||||||||||||||
Value-added taxes rate | 9.00% | 9.00% | 9.00% | ||||||||||||||||
Construction Tax | |||||||||||||||||||
Value-added taxes rate | 13.00% | 13.00% | 13.00% | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||
Payments of debt issuance costs | ¥ 25,189 | $ 3,710 | ¥ 48,342 | $ 7,120 | |||||||||||||||
Fair Value, Inputs, Level 3 [Member] | Great Alliance Co living Limited And Affiliates [Member] | |||||||||||||||||||
Business combination revenue growth rate for valuation of trademarks acquired | 12.50% | 12.50% | |||||||||||||||||
Business combination discount rate for valuation of trademarks acquired | 11.00% | 11.00% | 11.00% | ||||||||||||||||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Long-term Revenue Growth Rate | |||||||||||||||||||
Property and equipment, measurement input | 3 | 3 | 4 | 2 | |||||||||||||||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate | |||||||||||||||||||
Property and equipment, measurement input | 11 | 11 | 10 | 11 | |||||||||||||||
Tenants who prepay rent of at least the first six months of the lease term [Member] | |||||||||||||||||||
Rental discount | 5.00% | 5.00% | |||||||||||||||||
Tenants who prepay rent of at least the first twelve months of the lease term [Member] | |||||||||||||||||||
Rental discount | 10.00% | 10.00% | |||||||||||||||||
Leasehold improvements [Member] | |||||||||||||||||||
Property and equipment, gross | ¥ 449,637 | ¥ 449,637 | ¥ 1,308,310 | ||||||||||||||||
Property and equipment, accumulated depreciation | 146,402 | 146,402 | |||||||||||||||||
Impairment loss | 132,972 | ||||||||||||||||||
Capital lease other financing arrangement | 73,430 | 73,430 | |||||||||||||||||
Initial Value of Capital Lease assets | 136,146 | 136,146 | |||||||||||||||||
Carrying Value of Capital Lease Other Financing assets | 50,432 | 50,432 | |||||||||||||||||
Other Financing Payable | 371,124 | 371,124 | |||||||||||||||||
Aggregate of Initial value for Lease Assets | 374,609 | 374,609 | |||||||||||||||||
Carrying Value of Lease Assets | 138,764 | 138,764 | |||||||||||||||||
Furniture, fixtures and equipment [Member] | |||||||||||||||||||
Property and equipment, gross | 212,483 | 212,483 | 542,855 | ||||||||||||||||
Property and equipment, accumulated depreciation | 49,861 | 49,861 | |||||||||||||||||
Impairment loss | 90,312 | ||||||||||||||||||
Variable Interest Entity [Member] | |||||||||||||||||||
Net cash used in operating activities | ¥ (72,293) | $ (10,648) | ¥ (393,847) | ¥ (10,964) | |||||||||||||||
Percentage of consolidated revenues | 100.00% | ||||||||||||||||||
Percentage of consolidated assets | 94.00% | 94.00% | 93.00% | ||||||||||||||||
Percentage of consolidated liabilities | 96.00% | 96.00% | 96.00% | ||||||||||||||||
Long-term deferred rent | ¥ 212,054 | ¥ 212,054 | ¥ 387,739 | $ 31,232 | |||||||||||||||
Minimum [Member] | |||||||||||||||||||
Land use rights, remaining term of the land certificates | 30 years | 30 years | |||||||||||||||||
Rent free period with landlords | 90 days | 90 days | |||||||||||||||||
Tax benefit likely of being realized up on settlement percentage | 50.00% | ||||||||||||||||||
Lessor operating lease term | 12 months | 12 months | 12 months | ||||||||||||||||
Lessee operating lease term | 5 years | 5 years | 5 years | ||||||||||||||||
Maximum [Member] | |||||||||||||||||||
Land use rights, remaining term of the land certificates | 50 years | 50 years | |||||||||||||||||
Rental discount, limit per month | ¥ 200 | ||||||||||||||||||
Rent free period with landlords | 120 days | 120 days | |||||||||||||||||
Lessor operating lease term | 26 months | 26 months | 26 months | ||||||||||||||||
Lessee operating lease term | 6 years | 6 years | 6 years | ||||||||||||||||
Shanghai Qingke E-Commerce Co., Ltd. | Variable Interest Entity [Member] | |||||||||||||||||||
Equity interest held | 100.00% | 100.00% | |||||||||||||||||
Shanghai Qingke E-Commerce Co., Ltd. | Exclusive Technology Service Agreement [Member] | Minimum [Member] | |||||||||||||||||||
Percentage of net profit agreed to pay service fees | 100.00% | 100.00% | |||||||||||||||||
Shanghai Qingke E-Commerce Co., Ltd. | Spousal Consent Letters [Member] | |||||||||||||||||||
Equity interest held | 10.47% | 10.47% | |||||||||||||||||
Shanghai Xiangzi Financial Information Service Company Ltd [Member] | Bank Borrowing Agreement One [Member] | |||||||||||||||||||
Debt instrument carrying amount | ¥ 27,000 | ¥ 27,000 | |||||||||||||||||
Long term debt instrument maturity date | Mar. 31, 2022 | Mar. 31, 2022 | |||||||||||||||||
Shanghai Xiangzi Financial Information Service Company Ltd [Member] | Bank Borrowing Agreement One [Member] | Subsequent Event [Member] | |||||||||||||||||||
Proceeds from bank borrowings | 25,929 | ||||||||||||||||||
Debt instrument carrying amount | 25,929 | ||||||||||||||||||
Shanghai Xiangzi Financial Information Service Company Ltd [Member] | Bank Borrowing Agreement Two [Member] | Subsequent Event [Member] | |||||||||||||||||||
Proceeds from bank borrowings | 8,998 | ||||||||||||||||||
Debt instrument carrying amount | ¥ 8,998 | ¥ 132,000 | |||||||||||||||||
Long term debt instrument maturity date | Oct. 31, 2021 |
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 | 12 Months Ended | ||||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | Sep. 30, 2020USD ($) | |
Assets [Abstract] | |||||
Cash and cash equivalents | ¥ 22,879 | ¥ 159,799 | ¥ 103,752 | $ 3,370 | |
Restricted cash | 8,887 | 91,015 | 15,000 | 1,309 | |
Accounts receivable | 1,943 | 1,306 | 286 | ||
Amounts due from related parties | 168 | 5,587 | 25 | ||
Prepaid rent and deposit | 51,281 | 128,213 | 7,553 | ||
Advances to suppliers | 16,043 | 64,028 | 2,363 | ||
Other current assets | 101,803 | 146,559 | 14,994 | ||
Property and equipment, net | 358,022 | 1,185,311 | 52,731 | ||
Intangible assets, net | 222,123 | 1,248 | 32,715 | ||
Land use rights | 10,448 | 10,734 | 1,539 | ||
Other assets | 57,133 | 5,946 | 8,415 | ||
Total assets | 850,730 | 1,799,746 | 125,300 | ||
Liabilities | |||||
Accounts payable | 294,469 | 277,103 | 43,371 | ||
Amounts due to related parties | 6,594 | 3,121 | 971 | ||
Deferred revenue | 152,619 | 78,540 | 22,478 | ||
Short-term debt | 762,136 | 319,103 | 112,251 | ||
Rental installment loans | 54,505 | 756,749 | 8,028 | ||
Deposits from tenants | 82,191 | 163,203 | 12,105 | ||
Accrued expenses and other current liabilities | 443,418 | 99,292 | 65,310 | ||
Long-term debt | 464,920 | 428,345 | 68,475 | ||
Long-term deferred rent | 212,054 | 387,739 | 31,232 | ||
Total liabilities | 2,845,180 | 2,610,612 | 419,050 | ||
Net revenues | 1,207,963 | $ 177,913 | 1,233,770 | 889,937 | |
Net loss | (1,533,641) | (225,881) | (498,337) | (499,922) | |
Net cash provided by operating activities | 54,841 | 8,078 | (88,189) | (117,048) | |
Net cash used in investing activities | (138,670) | (20,406) | (351,450) | (674,298) | |
Net cash provided by (used in) financing activities | (134,924) | (17,979) | 569,569 | 539,528 | |
Variable Interest Entity | |||||
Assets [Abstract] | |||||
Cash and cash equivalents | 15,227 | 55,926 | 2,243 | ||
Restricted cash | 8,887 | 91,015 | 1,309 | ||
Accounts receivable | 1,943 | 1,306 | 286 | ||
Amounts due from related parties | 168 | 5,587 | 25 | ||
Prepaid rent and deposit | 51,281 | 127,096 | 7,553 | ||
Advances to suppliers | 32,122 | 64,028 | 4,731 | ||
Other current assets | 44,400 | 146,316 | 6,539 | ||
Property and equipment, net | 358,022 | 1,170,446 | 52,731 | ||
Intangible assets, net | 222,123 | 1,240 | 32,715 | ||
Land use rights | 10,448 | 10,734 | 1,539 | ||
Other assets | 57,024 | 8,399 | |||
Total assets | 801,645 | 1,673,694 | 118,070 | ||
Liabilities | |||||
Accounts payable | 294,469 | 277,103 | 43,371 | ||
Amounts due to related parties | 6,594 | 3,121 | 971 | ||
Deferred revenue | 152,619 | 78,540 | 22,478 | ||
Short-term debt | 540,808 | 319,103 | 79,653 | ||
Rental installment loans | 54,505 | 756,749 | 8,028 | ||
Deposits from tenants | 82,191 | 163,203 | 12,105 | ||
Accrued expenses and other current liabilities | 912,513 | 93,908 | 134,399 | ||
Long-term debt | 464,920 | 428,345 | 68,475 | ||
Long-term deferred rent | 212,054 | 387,739 | 31,232 | ||
Total liabilities | 2,720,673 | 2,507,811 | $ 400,712 | ||
Net revenues | 1,207,963 | 177,914 | 1,233,770 | 889,937 | |
Net loss | (1,500,305) | (220,971) | (177,738) | (251,555) | |
Net cash provided by operating activities | 72,293 | 10,648 | 393,847 | 10,964 | |
Net cash used in investing activities | (99,172) | (14,606) | (351,450) | (515,360) | |
Net cash provided by (used in) financing activities | ¥ (95,948) | $ (14,132) | ¥ 39,567 | ¥ 411,219 |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of expected useful lives of property and equipment, net (Detail) | 12 Months Ended |
Sep. 30, 2020 | |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | Shorter of the lease term or their estimated useful lives |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | 45 years |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | 8 years |
Minimum [Member] | Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | 5 years |
Maximum [Member] | Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | 8 years |
SUMMARY OF PRINCIPAL ACCOUNTI_7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Schedule of estimated useful lives of intangible asset (Detail) | 12 Months Ended |
Sep. 30, 2020 | |
Apartment rental contracts [Member] | |
Impaired Intangible Assets [Line Items] | |
Finite-lived intangible assets | Shorter of the lease term or 8 years |
Software [Member] | |
Impaired Intangible Assets [Line Items] | |
Finite-lived intangible assets | 8 years |
Trademarks [Member] | |
Impaired Intangible Assets [Line Items] | |
Finite-lived intangible assets | 10 years |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of fair value of financial assets and liabilities accounted for at fair value on a recurring basis (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | Sep. 30, 2017CNY (¥) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent earn-out liabilities | ¥ 0 | ¥ 97,417 | ¥ 83,872 | ¥ 44,856 | |
Contingent earn-out liabilities, gain | 97,417 | $ 14,348 | 42,404 | ¥ 6,164 | |
Fair Value, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent earn-out liabilities | 0 | 97,417 | |||
Contingent earn-out liabilities, gain | 97,417 | 42,404 | |||
Fair Value, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent earn-out liabilities | ¥ 0 | ¥ 97,417 |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of assets measured at fair value on a non-recurring basis (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | Sep. 30, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property and equipment | ¥ 358,022 | ¥ 1,185,311 | $ 52,731 | ||
Property and equipment, loss | 846,766 | $ 124,715 | 46,213 | ¥ 50,614 | |
Fair Value, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property and equipment | 93,635 | 124,993 | 103,399 | ||
Property and equipment, loss | 313,354 | 46,213 | 50,614 | ||
Apartment rental agreements | 134,452 | ||||
Trademarks | 86,900 | ||||
Apartment rental agreements loss | 425,341 | ||||
Trademarks, loss | 108,071 | ||||
Fair Value, Nonrecurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property and equipment | 93,635 | ¥ 124,993 | ¥ 103,399 | ||
Apartment rental agreements | 134,452 | ||||
Trademarks | ¥ 86,900 |
OTHER CURRENT ASSETS - Summary
OTHER CURRENT ASSETS - Summary of other current assets (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | |
Other Assets [Abstract] | ||||
Due from a rental service company | [1] | ¥ 52,410 | ¥ 43,786 | |
Deductible input value added tax | 35,660 | 93,008 | ||
Due from a service provider | [2] | 9,501 | ||
Others | 4,232 | 9,765 | ||
Total | ¥ 101,803 | $ 14,994 | ¥ 146,559 | |
[1] | As of September 30, 2020 and 2019, the balance due from a rental service company represented the reimbursement renovation costs due from the rental service company. The Company started to cooperate with a rental service company to source and renovate apartments since August 2018. For certain identified newly sourced apartments, the rental service company reimburses the Company for costs incurred for the renovation. The Company then makes payments to the rental service company in installments equal to the reimbursed renovation costs plus interest and tax over a period of five years. | |||
[2] | Upon asset acquisition with Beautiful House (Note 8), the Group engaged a third party service provider to provide apartment operation services to the Group. To support the operation services, the Company made interest free loans to the service provider and the loans are repayable on demand. |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Summary of property and equipment, net (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | Sep. 30, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | ¥ 725,834 | ¥ 1,914,041 | |
Less: Accumulated depreciation | (217,582) | (551,154) | |
Less: Impairment | (223,284) | (208,328) | |
Property and equipment, net | 358,022 | 1,185,311 | $ 52,731 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 40,167 | 40,167 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 449,637 | 1,308,310 | |
Less: Accumulated depreciation | (146,402) | ||
Office furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 212,483 | 542,855 | |
Less: Accumulated depreciation | (49,861) | ||
Vehicle | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 3,043 | 1,710 | |
Office furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 20,504 | 20,999 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | ¥ 73,054 | ¥ 30,752 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expenses | ¥ 187,092 | ¥ 214,192 | ¥ 151,543 | |
Business Combination, Recognized Identifiable Assets Acquired | ¥ 22,540 | |||
Number of shares of equity interests issued | 7,662,060 |
INTANGIBLE ASSETS, NET - Summar
INTANGIBLE ASSETS, NET - Summary of Intangible assets, net (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) |
Schedule Of Intangible Asset [Line Items] | |||
Cost | ¥ 832,223 | ¥ 2,275 | |
Less: Accumulated amortization | (76,688) | (1,027) | |
Less: Impairment | (533,412) | ||
Intangible assets, net | 222,123 | $ 32,715 | 1,248 |
Apartment rental contracts [Member] | |||
Schedule Of Intangible Asset [Line Items] | |||
Cost | 634,977 | ||
Trademarks [Member] | |||
Schedule Of Intangible Asset [Line Items] | |||
Cost | 194,971 | ||
Software [Member] | |||
Schedule Of Intangible Asset [Line Items] | |||
Cost | ¥ 2,275 | ¥ 2,275 |
INTANGIBLE ASSETS, NET - Detail
INTANGIBLE ASSETS, NET - Details of Group's amortization expenses for the five years (Detail) ¥ in Thousands | Sep. 30, 2020CNY (¥) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
Year ending September 30, 2021 | ¥ 60,880 |
Year ending September 30, 2022 | 46,343 |
Year ending September 30, 2023 | 36,079 |
Year ending September 30, 2024 | 24,150 |
Year ending September 30, 2025 and thereafter | 54,671 |
Total | ¥ 222,123 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | ¥ 75,660 | ¥ 178 | ¥ 178 |
DEBT - Summary of short-term an
DEBT - Summary of short-term and long-term debt (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) |
Short-term debt: | |||
Short-term bank borrowings | ¥ 176,752 | ¥ 65,000 | |
Long-term bank borrowings, current portion | 159,721 | 150,653 | |
Capital lease and other financing arrangement payable, current portion | 201,835 | 103,450 | |
Other short-term payable | 223,828 | ||
Subtotal | 762,136 | $ 112,251 | 319,103 |
Long-term debt: | |||
Long-term bank borrowings, non-current portion | 196,682 | 102,473 | |
Capital lease and other financing arrangement payable, non-current portion | 242,719 | 298,682 | |
Other long term payable | 25,519 | 27,190 | |
Subtotal | 464,920 | $ 68,475 | 428,345 |
Total | ¥ 1,227,056 | ¥ 747,448 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) $ in Thousands | May 28, 2020CNY (¥) | Apr. 30, 2020CNY (¥) | Jun. 13, 2017CNY (¥) | Dec. 31, 2020CNY (¥) | Nov. 30, 2020CNY (¥) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 26, 2020CNY (¥) | Jul. 31, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | Jun. 27, 2019CNY (¥) | Jun. 27, 2019USD ($) | Feb. 21, 2019CNY (¥) | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 26, 2016CNY (¥) |
Debt Instrument [Line Items] | ||||||||||||||||
Other financing Future payments, Due in next twelve months | ¥ 166,376,000 | |||||||||||||||
Other financing Future payments, Due in next second year | 86,925,000 | |||||||||||||||
Other financing Future payments, Due in third year | 79,689,000 | |||||||||||||||
Other financing Future payments, Due in next fourth year | 37,977,000 | |||||||||||||||
Other financing Future payments, Due after fourth year | 157,000 | |||||||||||||||
Long-term Debt, Current Maturities | 159,721,000 | ¥ 150,653,000 | ||||||||||||||
Long-term Debt, Excluding Current Maturities | ¥ 464,920,000 | $ 68,475 | ¥ 428,345,000 | |||||||||||||
Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt annual interest rate | 25.00% | 25.00% | ||||||||||||||
Other Short Term Debt | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt fixed interest rate | 6.00% | 6.00% | ||||||||||||||
Other Short Term Debt | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt fixed interest rate | 5.00% | 5.00% | ||||||||||||||
Buildings [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Collateral Deposit | ¥ 36,972,000 | |||||||||||||||
Shanghai Xiangzi Financial Information Service Company. Ltd. | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt annual interest rate | 8.75% | 8.75% | ||||||||||||||
Long-term Debt | ¥ 194,929,000 | |||||||||||||||
China Merchants Bank | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Weighted average interest rate | 5.39% | |||||||||||||||
Proceeds from borrowings | ¥ 17,210,000 | |||||||||||||||
Debt term | 10 years | |||||||||||||||
Long-term Debt | 11,473,000 | |||||||||||||||
Long-term Debt, Current Maturities | 1,721,000 | |||||||||||||||
Long-term Debt, Excluding Current Maturities | 9,752,000 | |||||||||||||||
Revolving Credit Facility | Shanghai Huarui Bank | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | ¥ 2,000,000,000 | ¥ 300,000,000 | ||||||||||||||
Weighted average interest rate | 7.50% | 7.50% | ||||||||||||||
Debt annual interest rate | 7.50% | |||||||||||||||
Line of credit | 0 | |||||||||||||||
Line Of Credit Current | 0 | |||||||||||||||
Line Of Credit Noncurrent | 0 | |||||||||||||||
Revolving Credit Facility | Shanghai Huarui Bank | Rental Installment Loans [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | ¥ 1,000,000,000 | |||||||||||||||
Line of credit | 58,923,000 | |||||||||||||||
Revolving Credit Facility | China CITIC Bank | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | ¥ 650,000,000 | |||||||||||||||
Collateral Deposit | $ | $ 105,000 | |||||||||||||||
Eighteen Month Bank Loan Entered On May Twenty Eight Two Thousand Twenty [Member] | Shanghai Huarui Bank | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Proceeds from borrowings | ¥ 50,000,000 | |||||||||||||||
Debt annual interest rate | 7.50% | |||||||||||||||
Long-term Debt | 50,000,000 | |||||||||||||||
Eighteen Month Bank Loan Entered On April Thirty Two Thousand Twenty [Member] | Shanghai Huarui Bank | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Proceeds from borrowings | ¥ 50,000,000 | |||||||||||||||
Debt annual interest rate | 7.50% | |||||||||||||||
Long-term Debt | 50,000,000 | |||||||||||||||
Eighteen Month Revolving Bank Credit Facility [Member] | Shanghai Huarui Bank | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | ¥ 108,000,000 | |||||||||||||||
Weighted average interest rate | 8.50% | |||||||||||||||
Long-term Debt | ¥ 50,000,000 | |||||||||||||||
Bank Borrowing Agreement One [Member] | Shanghai Xiangzi Financial Information Service Company. Ltd. | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument carrying amount | ¥ 27,000,000 | |||||||||||||||
Long term debt instrument maturity date | Mar. 31, 2022 | |||||||||||||||
Bank Borrowing Agreement One [Member] | Shanghai Xiangzi Financial Information Service Company. Ltd. | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument carrying amount | ¥ 25,929,000 | |||||||||||||||
Bank Borrowing Agreement Two [Member] | Shanghai Xiangzi Financial Information Service Company. Ltd. | Subsequent Event [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument carrying amount | ¥ 8,998,000 | ¥ 132,000,000 | ||||||||||||||
Long term debt instrument maturity date | Oct. 31, 2021 |
DEBT - Summary of future minimu
DEBT - Summary of future minimum lease payments required under the capital lease arrangements (Detail) ¥ in Thousands | Sep. 30, 2020CNY (¥) |
Debt Disclosure [Abstract] | |
2021 | ¥ 35,459 |
2022 | 20,029 |
2023 | 12,747 |
2024 | 10,473 |
2025 | 3,328 |
2026 and there after | 0 |
Capital leases, future minimum payments due | 82,036 |
Less payment amount allocated to interest | 8,606 |
Present value of capital lease obligation | 73,430 |
Current portion of capital lease obligation | 35,459 |
Long-term portion of capital lease obligation | ¥ 37,971 |
OPERATING COSTS - Summary of op
OPERATING COSTS - Summary of operating costs (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Costs and Expenses [Abstract] | |||
Rental cost | ¥ 813,773 | ¥ 975,342 | ¥ 664,732 |
Depreciation expenses | 256,056 | 207,814 | 145,768 |
Personnel cost | 77,392 | 23,698 | 21,092 |
Cost for value-added services and others | 56,194 | 98,138 | 66,367 |
Total | ¥ 1,203,415 | ¥ 1,304,992 | ¥ 897,959 |
ASSET ACQUISITION - Additional
ASSET ACQUISITION - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Jun. 30, 2020CNY (¥)LeaseholdImprovementsshares | Jun. 30, 2020USD ($)LeaseholdImprovementsshares | Dec. 31, 2019shares | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) |
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, gross | ¥ 39,498 | $ 5,800 | ||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 7,662,060 | |||||||
Cash consideration | 289,733 | 42,673 | ||||||
Business combination consideration transferred equity shares issued or issuable | 289,733 | $ 42,673 | ||||||
Great Alliance Coliving Limited And Affiliates [Member] | Rental Contracts [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of businesses acquired | LeaseholdImprovements | 72,000 | 72,000 | ||||||
Beautiful House [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, gross | ¥ 39,498 | $ 5,800 | ¥ 205,306 | $ 29,000 | ||||
Business acquisition, transaction costs | 0 | 0 | ||||||
Business combination, consideration payable | 165,808 | 165,808 | $ 23,200 | |||||
Cash consideration | 289,733 | |||||||
Liabilities assumed by the Company | 349,665 | ¥ 349,665 | 349,665 | |||||
Business combination consideration transferred equity shares issued or issuable | 289,733 | |||||||
Business combination recognised identifiable assets acquired and liabilities assumed apartment rental agreements | 649,733 | 649,733 | ||||||
Business combination recognised identifiable assets acquired and liabilities assumed trademark | 194,971 | 194,971 | ||||||
Business combnation consideration payable after deduction of liabilities | 495,039 | 495,039 | ||||||
Beautiful House [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination recognised identifiable assets acquired and liabilities assumed apartment rental agreements | 289,591 | 289,591 | ||||||
Business combination recognised identifiable assets acquired and liabilities assumed trademark | ¥ 86,900 | ¥ 86,900 | ||||||
Beautiful House [Member] | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty One [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination consideration payable in shares instalment percentage | 30.00% | 30.00% | 30.00% | |||||
Beautiful House [Member] | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty Two [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination consideration payable in shares instalment percentage | 40.00% | 40.00% | 40.00% | |||||
Beautiful House [Member] | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty Three [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination consideration payable in shares instalment percentage | 30.00% | 30.00% | 30.00% | |||||
Beautiful House [Member] | Common Stock [Member] | Common Class A [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 128,589,392 | 128,589,392 |
ASSET ACQUISITION - Summary of
ASSET ACQUISITION - Summary of fair value analysis of the net assets acquired (Detail) - Beautiful House [Member] - CNY (¥) ¥ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||
Apartment rental agreements | ¥ 649,733 | |
Trade, software copyrights and domain certificates | 194,971 | |
Liabilities assumed by the Company | (349,665) | ¥ (349,665) |
Total | ¥ 495,039 |
CONVERTIBLE NOTE, NET - Summary
CONVERTIBLE NOTE, NET - Summary of warrants activity (Detail) - shares | Jul. 22, 2020 | Sep. 30, 2020 |
Warrants and Rights Note Disclosure [Abstract] | ||
Number of shares, Beginning balance | 0 | |
Number of shares, Ending balance | 109,567 | |
Weighted average life, Grants | 5 years | |
Weighted average life, Ending balance | 4 years 10 months 2 days | |
Warrant Expirty Date July 29, 2025 [Member] | ||
Warrants and Rights Note Disclosure [Abstract] | ||
Number of shares, Grants | 104,871 | |
Weighted average life, Grants | 5 years | |
Expiration dates, Grants | Jul. 29, 2025 | |
Warrant Expirty Date September 25, 2025 [Member] | ||
Warrants and Rights Note Disclosure [Abstract] | ||
Number of shares, Grants | 4,696 | |
Weighted average life, Grants | 5 years | |
Expiration dates, Grants | Sep. 25, 2025 |
CONVERTIBLE NOTE, NET - Summa_2
CONVERTIBLE NOTE, NET - Summary of key assumption used in estimates of warrants (Detail) | Sep. 25, 2020mo | Jul. 29, 2020mo |
Terms of warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Measurement | 60 | 60 |
Exercise price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Measurement | 10.2214 | 11.4618 |
Risk free rate of interest | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Measurement | 22.609 | 22.552 |
Divided yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Measurement | 0 | 0 |
Annualized volatility of underlying stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Measurement | 39 | 40 |
CONVERTIBLE NOTE, NET - Additio
CONVERTIBLE NOTE, NET - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jul. 29, 2020CNY (¥)trading_days | Jul. 22, 2020USD ($) | Dec. 31, 2020CNY (¥) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | Sep. 30, 2020$ / shares | Sep. 25, 2020CNY (¥) | Sep. 25, 2020USD ($) | Jul. 29, 2020USD ($)$ / shares | Jul. 31, 2017$ / shares | Oct. 31, 2016$ / shares | Apr. 30, 2016$ / shares |
Debt Instrument [Line Items] | ||||||||||||||
Warrants and rights granted weight average life | 5 years | |||||||||||||
Convertible threshold percentage of stock price trigger | 80.00% | |||||||||||||
Share price | $ / shares | $ 0.05 | $ 0.04 | $ 0.03 | |||||||||||
Average daily trading volume | $ | $ 15,000 | |||||||||||||
Debt instrument convertible threshold consecutive trading days | trading_days | 60 | |||||||||||||
Adjustments to additional paid in capital warrants issued | ¥ 6,564 | |||||||||||||
Proceeds from convertible notes | ¥ 163,565 | $ 24,018 | ||||||||||||
Percentage of warrants to purchase ADS | 4.00% | |||||||||||||
Accretion of interest expenses | ¥ 214 | ¥ 214 | $ 31 | ¥ 15,777 | ¥ 10,733 | |||||||||
Warrants and rights outstanding, term | 4 years 10 months 2 days | |||||||||||||
Maximum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 25.00% | |||||||||||||
July Convertible Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Warrants and notes discount on notes | ¥ 6,394 | |||||||||||||
September Convertible Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Warrants and notes discount on notes | ¥ 170 | |||||||||||||
July And September Convertible Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Warrants and rights outstanding, term | 4 years | |||||||||||||
July And September Convertible Notes [Member] | Maximum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Covertible notes term yield percentage | 25.56% | |||||||||||||
July And September Convertible Notes [Member] | Minimum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Covertible notes term yield percentage | 25.31% | |||||||||||||
Warrants Issued In Connection With Convertible Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Adjustments to additional paid in capital warrants issued | ¥ 6,564 | |||||||||||||
Warrants to subscribe ADS [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Class of warrants or rights exercise price as a percentage of volume weighted average price of the shares | 110.00% | |||||||||||||
Number of tradings days for determning the share price | 60 days | 60 days | ||||||||||||
ADS [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Minimum threshold on offering value | $ | $ 50,000 | |||||||||||||
Minimum threshold on period for offering after the debt issuance date | 18 months | |||||||||||||
Share price | $ / shares | $ 22 | |||||||||||||
Notes payable series 1 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 4.00% | |||||||||||||
Notes payable series 2 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 6.00% | |||||||||||||
Notes payable series 3 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 7.00% | |||||||||||||
Notes payable series 4 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 8.00% | |||||||||||||
Convertible Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ | $ 100,000 | |||||||||||||
Debt term | 4 years | |||||||||||||
Convertible Debt [Member] | July Convertible Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt conversion price | $ / shares | $ 11.2508 | |||||||||||||
Convertible Debt [Member] | July Convertible Notes [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fair value of convertible notes | ¥ 143,618 | |||||||||||||
Convertible Debt [Member] | September Convertible Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt conversion price | $ / shares | $ 10.1003 | |||||||||||||
Convertible Debt [Member] | September Convertible Notes [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fair value of convertible notes | 4,747 | |||||||||||||
Convertible Debt [Member] | Warrant Component [Member] | July Convertible Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from convertible notes | 4,630 | |||||||||||||
Convertible Debt [Member] | Warrant Component [Member] | September Convertible Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from convertible notes | ¥ 102 | |||||||||||||
Convertible Debt [Member] | Second issuance of notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, maturity date | Sep. 25, 2024 | Sep. 25, 2024 | ||||||||||||
Convertible Debt [Member] | Series 1 note [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | ¥ 95,403 | $ 14,009 | ||||||||||||
Debt instrument, maturity date | Jul. 29, 2024 | |||||||||||||
Convertible Debt [Member] | Series 1 note [Member] | Second issuance of notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | ¥ 2,424 | $ 356 | ||||||||||||
Convertible Debt [Member] | Series 1 note [Member] | Interest payable in cash annually [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 7.50% | 7.50% | ||||||||||||
Convertible Debt [Member] | Series 1 note [Member] | Interest payable in cash at maturity [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 7.50% | 7.50% | ||||||||||||
Convertible Debt [Member] | Series 2 note [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | ¥ 109,241 | $ 16,041 | ||||||||||||
Convertible Debt [Member] | Series 2 note [Member] | Second issuance of notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | ¥ 5,748 | $ 844 | ||||||||||||
Convertible Debt [Member] | Series 2 note [Member] | Interest payable in cash annually [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 3.50% | 3.50% | ||||||||||||
Convertible Debt [Member] | Series 2 note [Member] | Interest payable in cash at maturity [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt annual interest rate | 13.50% | 13.50% |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule Of Accounts Payable And Accrued Liabilities (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) |
Accrued Liabilities, Current [Abstract] | |||
Due to a rental service company | ¥ 182,542 | ||
Tenant deposits payable | 83,682 | ¥ 12,715 | |
Payable to a constructor for leasehold improvements | 53,623 | ||
Other tax payable | 51,832 | 41,577 | |
Accrued utilities | 22,513 | 94 | |
Interest payable | 13,435 | 4,333 | |
Accrued payroll and welfare | 10,451 | 10,467 | |
Operation service payable | 6,602 | ||
Deferred rent | 2,503 | 28,415 | |
Others | 16,235 | 1,691 | |
Total | ¥ 443,418 | $ 65,310 | ¥ 99,292 |
PREFERRED SHARES - Additional I
PREFERRED SHARES - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Jul. 31, 2017USD ($)$ / sharesshares | May 31, 2015CNY (¥) | May 31, 2015USD ($)$ / sharesshares | Sep. 30, 2020CNY (¥) | Sep. 30, 2019$ / shares | Sep. 30, 2020$ / shares | Sep. 30, 2020CNY (¥)shares | Oct. 07, 2019USD ($) | Sep. 30, 2019CNY (¥)shares | Sep. 30, 2018CNY (¥) | Sep. 30, 2017CNY (¥) | Feb. 28, 2014CNY (¥) | Aug. 31, 2013CNY (¥) | Feb. 29, 2012CNY (¥) | |
Temporary Equity [Line Items] | ||||||||||||||||
Preferred shares, total consideration | ¥ | ¥ 0 | ¥ 1,425,485 | ¥ 644,043 | ¥ 368,546 | ||||||||||||
Preferred shares, issuance costs | ¥ | ¥ 29,289 | |||||||||||||||
Pre-offering market capitalization | $ 800,000 | |||||||||||||||
Series A Equity With Preference Rights | Shanghai Q&K Fashion Life Co., Ltd. | ||||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||||
Equity interest in preferred shares | ¥ | ¥ 30,000 | ¥ 10,000 | ¥ 4,000 | |||||||||||||
Series A Non-redeemable Preferred Shares [Member] | ||||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||||
Compounded annualized return per annum | 0.00% | |||||||||||||||
Preferred stock shares issued | shares | 0 | 255,549,510 | ||||||||||||||
Series B convertible redeemable preferred shares | ||||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||||
Preferred shares, issued | shares | 160,000,000 | 160,000,000 | 160,000,000 | |||||||||||||
Preferred shares, price per share | $ / shares | $ 0.125 | $ 0.00001 | $ 0.00001 | |||||||||||||
Preferred shares, total consideration | $ 20,000 | ¥ 316,765 | ||||||||||||||
Cash proceeds received from issuance of preferred shares | $ 20,000 | |||||||||||||||
Preferred shares, issuance costs | ¥ | ¥ 0 | |||||||||||||||
Compounded annualized return per annum | 12.00% | |||||||||||||||
Series C convertible redeemable preferred shares | ||||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||||
Preferred shares, issued | shares | 120,000,000 | 120,000,000 | 120,000,000 | |||||||||||||
Preferred shares, price per share | $ / shares | $ 0.25 | 0.00001 | 0.00001 | |||||||||||||
Preferred shares, total consideration | $ 30,000 | ¥ 272,633 | ¥ 29,038 | |||||||||||||
Cash proceeds received from issuance of preferred shares | 28,200 | |||||||||||||||
Preferred shares, issuance costs | $ 1,800 | |||||||||||||||
Compounded annualized return per annum | 15.00% | |||||||||||||||
Series C-1 convertible redeemable preferred shares | ||||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||||
Preferred shares, issued | shares | 103,500,000 | 103,500,000 | 103,500,000 | |||||||||||||
Preferred shares, price per share | $ / shares | $ 0.29 | 0.00001 | 0.00001 | |||||||||||||
Preferred shares, total consideration | $ 30,000 | ¥ 236,320 | ||||||||||||||
Cash proceeds received from issuance of preferred shares | 28,900 | |||||||||||||||
Preferred shares, issuance costs | $ 1,100 | |||||||||||||||
Compounded annualized return per annum | 15.00% | |||||||||||||||
Series C-2 convertible redeemable preferred shares | ||||||||||||||||
Temporary Equity [Line Items] | ||||||||||||||||
Preferred shares, issued | shares | 273,360,850 | 273,360,850 | 273,360,850 | |||||||||||||
Preferred shares, price per share | $ / shares | $ 0.3045 | $ 0.00001 | $ 0.00001 | |||||||||||||
Preferred shares, total consideration | $ 83,250 | ¥ 599,767 | ||||||||||||||
Cash proceeds received from issuance of preferred shares | 78,859 | |||||||||||||||
Preferred shares, issuance costs | $ 4,391 | |||||||||||||||
Compounded annualized return per annum | 15.00% |
PREFERRED SHARES - Summary of r
PREFERRED SHARES - Summary of roll forward of carrying amounts of mezzanine equity (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Temporary Equity [Line Items] | |||
Beginning balance | ¥ 1,425,485 | ¥ 644,043 | ¥ 368,546 |
Accretion to redemption value | 307,389 | 135,545 | |
Ending balance | 0 | 1,425,485 | 644,043 |
Series C convertible redeemable preferred shares | |||
Temporary Equity [Line Items] | |||
Beginning balance | 272,633 | 29,038 | |
Accretion to redemption value | 36,952 | ||
Exercise of temporary equity shares to redemption value | (272,633) | ||
Ending balance | 272,633 | 29,038 | |
Series B convertible redeemable preferred shares | |||
Temporary Equity [Line Items] | |||
Beginning balance | 316,765 | ||
Accretion to redemption value | 111,041 | 43,818 | |
Exercise of temporary equity shares to redemption value | (316,765) | ||
Ending balance | 316,765 | ||
Series C-1 convertible redeemable preferred shares | |||
Temporary Equity [Line Items] | |||
Beginning balance | 236,320 | ||
Issuance of shares to investors | 139,952 | ||
Accretion to redemption value | 33,681 | ¥ 62,689 | |
Exercise of temporary equity shares to redemption value | (236,320) | ||
Ending balance | 236,320 | ||
Series C-2 Convertible Redeemable Preferred Shares | |||
Temporary Equity [Line Items] | |||
Beginning balance | 599,767 | ||
Issuance of shares to investors | 474,053 | ||
Accretion to redemption value | 125,715 | ||
Exercise of temporary equity shares to redemption value | ¥ (599,767) | ||
Ending balance | ¥ 599,767 |
PREFERRED SHARES - Summary of_2
PREFERRED SHARES - Summary of roll-forward of carrying amounts of contingent earn-out liability (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | |
Beginning balance | ¥ 97,417 | ¥ 83,872 | ¥ 44,856 | |
Fair value change included in earnings | (97,417) | $ (14,348) | (42,404) | (6,164) |
Ending balance | ¥ 0 | 97,417 | 83,872 | |
Series C-1 convertible redeemable preferred shares | ||||
Increase in accordance with shares issuance | ¥ 45,180 | |||
Series C-2 convertible redeemable preferred shares | ||||
Increase in accordance with shares issuance | ¥ 55,949 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) ¥ / shares in Units, ¥ in Thousands | Sep. 30, 2020shares | Apr. 01, 2019$ / sharesshares | Dec. 01, 2018$ / sharesshares | Apr. 01, 2018$ / sharesshares | Nov. 12, 2017$ / sharesshares | Jul. 31, 2017$ / sharesshares | Jul. 31, 2017¥ / sharesshares | Mar. 16, 2017$ / sharesshares | Jul. 19, 2019CNY (¥) | Sep. 30, 2020CNY (¥)shares | Sep. 30, 2019CNY (¥)shares | Sep. 30, 2018CNY (¥)shares | Sep. 30, 2017shares | Oct. 18, 2016$ / sharesshares | Oct. 18, 2016¥ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 0 | ||||||||||||||
Share based compensation stock options outstanding number | 41,750,000 | 41,750,000 | 68,220,000 | 70,000,000 | 70,000,000 | ||||||||||
Number of Options - Vested or expected to vest | 41,750,000 | 41,750,000 | |||||||||||||
Maximum | Management, Employees and Non-employees | |||||||||||||||
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 | 25.00% | ||||||||||||||
Stock Option A | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share options vested | 0 | ||||||||||||||
Share based compensation stock options exercised | 0 | ||||||||||||||
Share based compensation stock options outstanding number | 10,600,000 | 10,600,000 | |||||||||||||
Share based compensation stock options outstanding weighted average intrinsic value | 0 | ||||||||||||||
Number of Options - Vested or expected to vest | 0 | 0 | |||||||||||||
Stock Option A | Management, Employees and Non-employees | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share options granted | 26,860,000 | 26,860,000 | |||||||||||||
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 | 50.00% | ||||||||||||||
Stock Option B | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share based compensation stock options outstanding number | 31,150,000 | 31,150,000 | |||||||||||||
Share based compensation stock options outstanding weighted average intrinsic value | 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 options vested | 43,140,000 | 43,140,000 | |||||||||||||
Restricted Share Units | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 0 | ¥ 8,173 | ¥ 2,252 | ||||||||||||
Restricted share units, value repurchased | ¥ | ¥ 5,190 | ||||||||||||||
Restricted Share Units | Consulting Company | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Restricted share units, issued | 2,600,000 | 2,800,000 | 2,800,000 | 2,600,000 | 2,600,000 | 15,990,000 | |||||||||
Restricted share units, vested | 5,200,000 | ||||||||||||||
Restricted share units, right to repurchase the remaining shares | 10,790,000 | 10,790,000 | |||||||||||||
Restricted share units, measurement date fair value | $ / shares | $ 0.25 | $ 0.20 | $ 0.10 | $ 0.06 | $ 0.05 | ||||||||||
Share-based Payment Arrangement, Option | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 16,045 | ¥ 0 | ¥ 0 | ||||||||||||
Yijia Inc | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares reserved | 86,000,000 | 86,000,000 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of option activity (Detail) - ¥ / shares | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | ||||
Number of Options - Beginning balance | 68,220,000 | 70,000,000 | 70,000,000 | |
Number of Options - Forfeited | 26,470,000 | 1,780,000 | ||
Number of Options - Ending balance | 41,750,000 | 68,220,000 | 70,000,000 | 70,000,000 |
Number of Options - Vested or expected to vest | 41,750,000 | |||
Exercise Price RMB - Beginning balance | ¥ 2 | ¥ 2 | ¥ 2 | |
Exercise Price RMB - Forfeited | 2 | 2 | ||
Exercise Price RMB - Ending balance | 2 | ¥ 2 | ¥ 2 | ¥ 2 |
Exercise Price RMB - Vested or expected to vest | ¥ 2 | |||
Remaining Contractual Life | 6 years 1 month 6 days | 6 years 8 months 26 days | 7 years 8 months 23 days | 8 years 8 months 23 days |
Remaining Contractual Life - Vested or expected to vest | 6 years 1 month 6 days | |||
Remaining Contractual Life - Forfeited | 6 years 8 months 26 days | 7 years 8 months 23 days |
SHARE-BASED COMPENSATION - Su_2
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 | 35.00% | 37.00% | 37.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value of underlying ordinary shares | $ 0.05 | $ 0.04 | $ 0.03 |
LOSSES PER SHARE - Summary of c
LOSSES PER SHARE - Summary of computation of basic and diluted earnings per share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020CNY (¥)¥ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019CNY (¥)¥ / sharesshares | Sep. 30, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss attributable to Q&K International Group Limited | ¥ (1,533,592) | $ (225,874) | ¥ (498,242) | ¥ (499,859) |
Deemed dividend | ¥ | (307,389) | (135,545) | ||
Net loss attributable to ordinary shareholders—basic and diluted | ¥ (1,533,592) | $ (225,874) | ¥ (805,631) | ¥ (635,404) |
Denominator: | ||||
Weighted average ordinary shares outstanding—basic and diluted | shares | 1,351,127,462 | 1,351,127,462 | 430,450,490 | 409,403,915 |
Net loss per share—basic and diluted | (per share) | ¥ (1.14) | $ (0.17) | ¥ (1.87) | ¥ (1.55) |
LOSSES PER SHARE - Additional I
LOSSES PER SHARE - Additional Information (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Convertible Preferred Securities [Member] | |||
Antidilutive Securities Excluded From Computation Of EPS | 0 | 912,410,360 | 639,049,510 |
Share-based Payment Arrangement, Option | |||
Antidilutive Securities Excluded From Computation Of EPS | 41,750,000 | 68,220,000 | 70,000,000 |
Convertible Debt [Member] | |||
Antidilutive Securities Excluded From Computation Of EPS | 2,789,720 | 0 | 0 |
Convertible Bonds And Warrants Attached [Member] | |||
Antidilutive Securities Excluded From Computation Of EPS | 109,567 | 0 | 0 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) ¥ in Thousands | 12 Months Ended | ||||||
Sep. 30, 2020HKD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019HKD ($) | Sep. 30, 2018HKD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | Sep. 30, 2017CNY (¥) | |
Income Taxes [Line Items] | |||||||
Income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | |||
Valuation allowance | ¥ 619,922 | ¥ 338,964 | ¥ 233,191 | ¥ 112,256 | |||
Tax loss carryforwards | ¥ 1,080,172 | ||||||
Hong Kong | On The First Two Thousand Hong kong Dollars Of Assessable Income [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income tax rate | 8.25% | 8.25% | 8.25% | 8.25% | |||
Assessable profits on which tax is levied | $ | $ 2,000 | $ 2,000 | $ 2,000 | ||||
Hong Kong | Above Two Thousand Hong kong Dollars Of Assessable Income [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income tax rate | 16.50% | 16.50% | 16.50% | 16.50% | |||
Assessable profits on which tax is levied | $ | $ 2,000 | $ 2,000 | $ 2,000 | ||||
United States of America | |||||||
Income Taxes [Line Items] | |||||||
Income tax rate | 21.00% | 21.00% | |||||
PRC | |||||||
Income Taxes [Line Items] | |||||||
Income tax rate | 25.00% | 25.00% | |||||
Special circumstance for underpayment of income tax liability amount | ¥ 100 | ||||||
Withholding income tax | 10.00% | 10.00% | |||||
Delaware division of revenue | |||||||
Income Taxes [Line Items] | |||||||
Income tax rate | 8.70% | 8.70% |
INCOME TAXES - Summary of tax e
INCOME TAXES - Summary of tax expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax | ¥ 13 | ¥ 63 | ¥ 2,393 | |
Total | ¥ 13 | $ 2 | ¥ 63 | ¥ 2,393 |
INCOME TAXES - Summary of recon
INCOME TAXES - Summary of reconciliation between effective income tax rate and PRC statutory income tax rate (Detail) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Effect of different tax rates of group entities operating in other jurisdictions and preferential tax rates of group entities | 0.50% | ||
Tax effect of other expenses that are not deductible in determining taxable profit | (0.30%) | (2.40%) | (1.20%) |
Tax effect of loss on disposal of long-term assets | (7.60%) | ||
Effect of change in valuation allowance | (17.60%) | (22.60%) | (24.30%) |
Effective tax rate | 0.00% | 0.00% | (0.50%) |
INCOME TAXES - Summary of princ
INCOME TAXES - Summary of principal components of deferred income tax assets (Detail) - CNY (¥) ¥ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred tax assets: | ||||
Net losses carryforward | ¥ 268,477 | ¥ 166,302 | ||
Impairment loss on long-term assets | 263,774 | |||
Other accrued expenses | 21,322 | 160,075 | ||
Deferred rent | 53,757 | |||
Advertising expenses | 12,592 | 12,587 | ||
Valuation allowance | (619,922) | (338,964) | ¥ (233,191) | ¥ (112,256) |
Total deferred tax assets | ¥ 0 | ¥ 0 |
INCOME TAXES - Summary of movem
INCOME TAXES - Summary of movement of valuation allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | ¥ 338,964 | ¥ 233,191 | ¥ 112,256 |
Addition | 280,958 | 105,773 | 120,935 |
Ending Balance | ¥ 619,922 | ¥ 338,964 | ¥ 233,191 |
STATUTORY RESERVES AND NET RE_2
STATUTORY RESERVES AND NET RESTRICTED ASSETS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statutory Reserves And Restricted Assets [Abstract] | ||
Percentage of profit appropriated to general reserve | 10.00% | |
Percentage of registered capital threshold | 50.00% | |
Paid-in capital and statutory reserve funds | ¥ 930,525 | ¥ 1,332,226 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Jul. 31, 2020CNY (¥) | Jul. 31, 2020USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | Sep. 30, 2020USD ($) | Jul. 29, 2020CNY (¥) | Jul. 29, 2020USD ($) | Jul. 22, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||||||||
Services provided by the related parties | ¥ | ¥ 47,464 | ¥ 139,026 | ¥ 210,963 | ||||||||
Amounts due from related parties | ¥ 168 | 168 | 5,587 | $ 25 | |||||||
Amounts due to related parties | 6,594 | 6,594 | ¥ 3,121 | $ 971 | |||||||
Accrued interest expenses on convertible debt | ¥ | ¥ 4,365 | ||||||||||
Payments of debt issuance costs | ¥ 8,172 | $ 1,200 | ¥ 155,393 | $ 22,818 | |||||||
Convertible Debt [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | $ 100,000 | ||||||||||
Convertible Debt [Member] | Series 1 note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | ¥ 95,403 | $ 14,009 | |||||||||
Convertible Debt [Member] | Series 2 note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | ¥ 109,241 | $ 16,041 | |||||||||
Convertible Debt [Member] | July Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt annual interest rate | 15.00% | 15.00% | 15.00% | ||||||||
Convertible Debt [Member] | July Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | Series 1 note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | $ 22,818 | ||||||||||
Convertible Debt [Member] | July Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | Series 2 note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | 6,777 | ||||||||||
Convertible Debt [Member] | July Convertible Notes [Member] | Interest Of Seventeen Percent [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | $ 16,041 | ||||||||||
Debt annual interest rate | 17.00% | 17.00% | 17.00% | ||||||||
Convertible Debt [Member] | September Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt annual interest rate | 15.00% | 15.00% | 15.00% | ||||||||
Convertible Debt [Member] | September Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | Series 1 note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | $ 1,200 | ||||||||||
Convertible Debt [Member] | September Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | Series 2 note [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | 356 | ||||||||||
Convertible Debt [Member] | September Convertible Notes [Member] | Interest Of Seventeen Percent [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Debt instrument aggregate principal amount | $ 844 | ||||||||||
Debt annual interest rate | 17.00% | 17.00% | 17.00% |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Related Parties Group (Detail) | 12 Months Ended |
Sep. 30, 2020 | |
Shanghai Yijia Chuangye Investment Center LLP ("Yijia Chuangye") | |
Relationship with the group | An entity controlled by Mr. Jin Guangjie (“Founder and CEO of the Group”) |
Shanghai Laiguan Property Management Co., Ltd. ("Laiguan") | |
Relationship with the group | An entity controlled by certain shareholders of the Group |
Shangai Ziniu Property Management Co Ltd [Member] | |
Relationship with the group | An entity controlled by certain shareholders of the Group |
Shanghai Q&K Fashion Life Co., Ltd. ("Q&K Fashion") | |
Relationship with the group | An entity controlled by Founder and CEO of the Group |
Shanghai Qingke Robot Technology Co., Ltd. ("Robot") | |
Relationship with the group | An affiliate of Founder and CEO of the Group |
Shanghai Yijia Property Management Co., Ltd. ("Yijia Property") | |
Relationship with the group | An entity controlled by certain shareholders of the Group |
Shanghai Xulong Trading Co., Ltd. ("Xulong") | |
Relationship with the group | An entity controlled by the parents of Founder and CEO of the Group |
Shanghai Youzhen Information Technology Co., Ltd. ("Youzhen") | |
Relationship with the group | An entity controlled by the parents of Founder and CEO of the Group |
Shanghai Qingji Property Management Co., Ltd. ("Qingji") | |
Relationship with the group | An entity controlled by certain shareholders of the Group |
Key Space(S) Ptd. Ltd. ("Key Space") | |
Relationship with the group | An entity controlled by certain shareholder of the Group |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES - Summary of transactions with related parties (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | Sep. 30, 2020USD ($) | ||
Related Party Transaction [Line Items] | |||||
Services provided by the related parties | ¥ 47,464 | ¥ 139,026 | ¥ 210,963 | ||
Amounts due from related parties | 168 | 5,587 | $ 25 | ||
Amounts due to related parties | 6,594 | 3,121 | $ 971 | ||
Purchases of property and equipment from Xulong | |||||
Related Party Transaction [Line Items] | |||||
Services provided by the related parties | 12,205 | 77,676 | |||
Labor outsourcing service expense to Laiguan | |||||
Related Party Transaction [Line Items] | |||||
Services provided by the related parties | 25,059 | 43,003 | 48,861 | ||
Labor outsourcing service expense to Qingji | |||||
Related Party Transaction [Line Items] | |||||
Services provided by the related parties | 22,405 | 41,180 | 19,258 | ||
Value-added service cost to Robot | |||||
Related Party Transaction [Line Items] | |||||
Services provided by the related parties | 28,336 | 42,352 | |||
Storage and logistic service expense to Xulong | |||||
Related Party Transaction [Line Items] | |||||
Services provided by the related parties | 4,582 | 14,298 | |||
Marketing service expense to Xulong | |||||
Related Party Transaction [Line Items] | |||||
Services provided by the related parties | 9,720 | 8,364 | |||
Research and development expense to Robot | |||||
Related Party Transaction [Line Items] | |||||
Services provided by the related parties | ¥ 154 | ||||
Shanghai Yijia Chuangye Investment Center LLP | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | [1] | 4,400 | |||
Shanghai Laiguan Property Management Co., Ltd. | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | 1,024 | ||||
Amounts due to related parties | 882 | ||||
Shanghai Youzhen Information Technology Co., Ltd. | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | 125 | 125 | |||
Shanghai Qingji Property Management Co., Ltd. ("Qingji") | |||||
Related Party Transaction [Line Items] | |||||
Amounts due to related parties | 1,539 | 743 | |||
Others | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related parties | 43 | 38 | |||
Amounts due to related parties | 17 | 12 | |||
Shanghai Yijia Property Management Co., Ltd. | |||||
Related Party Transaction [Line Items] | |||||
Amounts due to related parties | ¥ 4,156 | ¥ 2,366 | |||
[1] | Represents related party loans to Yijia Chuangye, which were interest free and payable on demand. During the year ended September 30, 2020, the Company fully collected the balance from the related party as well as the balance due from Laiguan. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Summary of future minimum lease payments under non-cancellable operating lease agreements (Detail) ¥ in Thousands | Sep. 30, 2020CNY (¥) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | ¥ 1,028,730 |
2022 | 909,053 |
2023 | 782,914 |
2024 | 651,316 |
2025 | 539,349 |
Thereafter | 846,837 |
Total | ¥ 4,758,199 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) ¥ in Thousands | 12 Months Ended |
Sep. 30, 2020CNY (¥) | |
Compensation payable for premature termination of operating lease [Member] | |
Commitments and Contingencies [Line Items] | |
Operating lease compensation payable for premature termination | ¥ 5,211 |
Compensation payable for premature termination of operating lease 1 [Member] | |
Commitments and Contingencies [Line Items] | |
Period over which landlord can initiate legal proceedings | 3 years |
Compensation payable for premature termination of operating lease 1 [Member] | Maximum | |
Commitments and Contingencies [Line Items] | |
Operating lease maximum compensation payable for premature termination of operating lease | ¥ 51,924 |
Leasehold improvements and installation of equipment | |
Commitments and Contingencies [Line Items] | |
Purchase commitments | ¥ 0 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) - Subsequent Event [Member] ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Nov. 30, 2020CNY (¥) | Oct. 31, 2020CNY (¥) | Oct. 31, 2020USD ($) | |
Notes payable series 1 [Member] | |||||
Proceeds from issuance of convertible note and warrant | ¥ 48,342 | $ 7,120 | |||
Notes payable series 2 [Member] | |||||
Proceeds from issuance of convertible note and warrant | ¥ 25,189 | $ 3,710 | |||
Shanghai Xiangzi Financial Information Service Company. Ltd. | Bank Borrowing Agreement One [Member] | |||||
Proceeds from bank borrowings | 25,929 | ||||
Shanghai Xiangzi Financial Information Service Company. Ltd. | Bank Borrowing Agreement Two [Member] | |||||
Proceeds from bank borrowings | ¥ 8,998 | ||||
Shanghai Xiangzi Financial Information Service Company. Ltd. | Bank Borrowing Extension Agreement One [Member] | |||||
Proceeds from bank borrowings | ¥ 132,000 |
FINANCIAL STATEMENT SCHEDULE I
FINANCIAL STATEMENT SCHEDULE I - Condensed Balance Sheets (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) | Sep. 30, 2018CNY (¥) | Mar. 31, 2018USD ($) | Sep. 30, 2017CNY (¥) | Jul. 31, 2017USD ($) | May 31, 2015USD ($) |
Assets | |||||||||
Cash and cash equivalents | ¥ 22,879 | $ 3,370 | ¥ 159,799 | ¥ 103,752 | |||||
Total assets | 850,730 | 125,300 | 1,799,746 | ||||||
Liabilities | |||||||||
Short-term borrowings | 762,136 | 112,251 | 319,103 | ||||||
Accrued expenses and other current liabilities | 443,418 | 65,310 | 99,292 | ||||||
Contingent earn-out liabilities | 0 | 97,417 | 83,872 | ¥ 44,856 | |||||
Total liabilities | 2,845,180 | 419,050 | 2,610,612 | ||||||
Mezzanine equity | 0 | 1,425,485 | 644,043 | ¥ 368,546 | |||||
Shareholders' deficit: | |||||||||
Ordinary shares | 92 | 14 | 27 | ||||||
Treasury stock | 298,110 | 43,907 | |||||||
Additional paid-in capital | 2,085,099 | 307,102 | |||||||
Accumulated deficits | (3,809,516) | (561,081) | (2,275,924) | ||||||
Accumulated other comprehensive (loss) income | 18,357 | 2,704 | (5,908) | ||||||
Total Q&K International Group Limited shareholders' deficit | (2,004,078) | (295,168) | (2,246,028) | ||||||
Total liabilities, mezzanine equity and shareholders' deficit | 850,730 | 125,300 | 1,799,746 | ||||||
Parent Company | |||||||||
Assets | |||||||||
Cash and cash equivalents | 6,015 | 886 | 101,157 | ||||||
Other receivables, deposits and other assets | 1 | ||||||||
Amounts due from subsidiaries and consolidated VIE and VIE's subsidiaries | 0 | 0 | 522,124 | ||||||
Total assets | 6,015 | 886 | 623,282 | ||||||
Liabilities | |||||||||
Short-term borrowings | 221,328 | 32,598 | |||||||
Accrued expenses and other current liabilities | 13,126 | 1,933 | |||||||
Contingent earn-out liabilities | 97,417 | ||||||||
Convertible notes | 206,251 | 30,377 | |||||||
Deficit of investments in subsidiaries and consolidated VIE and VIE's subsidiaries | 0 | 0 | 1,346,408 | ||||||
Amounts due to subsidiaries and consolidated VIE and VIE's subsidiaries | 1,569,388 | 231,146 | |||||||
Total liabilities | 2,010,093 | 296,054 | 1,443,825 | ||||||
Mezzanine equity | 1,425,485 | ||||||||
Shareholders' deficit: | |||||||||
Ordinary shares | 92 | 14 | 27 | ||||||
Treasury stock | (298,110) | (43,907) | |||||||
Additional paid-in capital | 2,085,099 | 307,102 | |||||||
Accumulated deficits | (3,809,516) | (561,081) | (2,275,924) | ||||||
Accumulated other comprehensive (loss) income | 18,357 | 2,704 | (5,908) | ||||||
Total Q&K International Group Limited shareholders' deficit | (2,004,078) | (295,168) | (2,246,028) | ||||||
Total liabilities, mezzanine equity and shareholders' deficit | ¥ 6,015 | $ 886 | 623,282 | ||||||
Series B convertible redeemable preferred shares [Member] | |||||||||
Liabilities | |||||||||
Mezzanine equity | 316,765 | $ 20,000 | |||||||
Series B convertible redeemable preferred shares [Member] | Parent Company | |||||||||
Liabilities | |||||||||
Mezzanine equity | 316,765 | ||||||||
Series C convertible redeemable preferred shares [Member] | |||||||||
Liabilities | |||||||||
Mezzanine equity | 272,633 | ¥ 29,038 | $ 30,000 | ||||||
Series C convertible redeemable preferred shares [Member] | Parent Company | |||||||||
Liabilities | |||||||||
Mezzanine equity | 272,633 | ||||||||
Series C-1 convertible redeemable preferred shares [Member] | |||||||||
Liabilities | |||||||||
Mezzanine equity | 236,320 | $ 30,000 | |||||||
Series C-1 convertible redeemable preferred shares [Member] | Parent Company | |||||||||
Liabilities | |||||||||
Mezzanine equity | 236,320 | ||||||||
Series C-2 convertible redeemable preferred shares [Member] | |||||||||
Liabilities | |||||||||
Mezzanine equity | 599,767 | $ 83,250 | |||||||
Series C-2 convertible redeemable preferred shares [Member] | Parent Company | |||||||||
Liabilities | |||||||||
Mezzanine equity | 599,767 | ||||||||
Series A non-redeemable preferred shares [Member] | |||||||||
Shareholders' deficit: | |||||||||
Series A non-redeemable preferred shares | 35,777 | ||||||||
Series A non-redeemable preferred shares [Member] | Parent Company | |||||||||
Shareholders' deficit: | |||||||||
Series A non-redeemable preferred shares | ¥ 35,777 |
FINANCIAL STATEMENT SCHEDULE _2
FINANCIAL STATEMENT SCHEDULE I - Condensed Balance Sheets (Parenthetical) (Detail) ¥ in Thousands | Sep. 30, 2020$ / shares | Sep. 30, 2020CNY (¥)shares | Sep. 30, 2019$ / shares | Sep. 30, 2019CNY (¥)shares | Jun. 30, 2019$ / sharesshares | Mar. 31, 2018$ / sharesshares | Jul. 31, 2017$ / sharesshares | May 31, 2015$ / sharesshares |
Series B convertible redeemable preferred shares [Member] | ||||||||
Convertible redeemable preferred shares, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.125 | |||||
Convertible redeemable preferred shares, shares authorized | 160,000,000 | 160,000,000 | ||||||
Convertible redeemable preferred shares, shares issued | 160,000,000 | 160,000,000 | 160,000,000 | |||||
Convertible redeemable preferred shares, shares outstanding | 160,000,000 | 160,000,000 | ||||||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 233,350 | ||||||
Series B convertible redeemable preferred shares [Member] | Parent Company | ||||||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | ||||||
Convertible redeemable preferred shares, shares authorized | 160,000,000 | 160,000,000 | ||||||
Convertible redeemable preferred shares, shares issued | 160,000,000 | 160,000,000 | ||||||
Convertible redeemable preferred shares, shares outstanding | 160,000,000 | 160,000,000 | ||||||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 233,350 | ||||||
Series C convertible redeemable preferred shares [Member] | ||||||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | $ 0.25 | |||||
Convertible redeemable preferred shares, shares authorized | 120,000,000 | 120,000,000 | ||||||
Convertible redeemable preferred shares, shares issued | 120,000,000 | 120,000,000 | 120,000,000 | |||||
Convertible redeemable preferred shares, shares outstanding | 120,000,000 | 120,000,000 | ||||||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 287,231 | ||||||
Series C convertible redeemable preferred shares [Member] | Parent Company | ||||||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | ||||||
Convertible redeemable preferred shares, shares authorized | 120,000,000 | 120,000,000 | ||||||
Convertible redeemable preferred shares, shares issued | 120,000,000 | 120,000,000 | ||||||
Convertible redeemable preferred shares, shares outstanding | 120,000,000 | 120,000,000 | ||||||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 287,231 | ||||||
Series C-1 convertible redeemable preferred shares [Member] | ||||||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | $ 0.29 | |||||
Convertible redeemable preferred shares, shares authorized | 103,500,000 | 103,500,000 | ||||||
Convertible redeemable preferred shares, shares issued | 103,500,000 | 103,500,000 | 103,500,000 | |||||
Convertible redeemable preferred shares, shares outstanding | 103,500,000 | 103,500,000 | ||||||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 255,213 | ||||||
Series C-1 convertible redeemable preferred shares [Member] | Parent Company | ||||||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | 0.00001 | ||||||
Convertible redeemable preferred shares, shares authorized | 103,500,000 | 103,500,000 | ||||||
Convertible redeemable preferred shares, shares issued | 103,500,000 | 103,500,000 | ||||||
Convertible redeemable preferred shares, shares outstanding | 103,500,000 | 103,500,000 | ||||||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 255,213 | ||||||
Series C-2 convertible redeemable preferred shares [Member] | ||||||||
Convertible redeemable preferred shares, par value | $ / shares | 0.00001 | $ 0.00001 | $ 0.3045 | |||||
Convertible redeemable preferred shares, shares authorized | 273,360,850 | 273,360,850 | ||||||
Convertible redeemable preferred shares, shares issued | 273,360,850 | 273,360,850 | 273,360,850 | |||||
Convertible redeemable preferred shares, shares outstanding | 273,360,850 | 273,360,850 | ||||||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 595,962 | ||||||
Series C-2 convertible redeemable preferred shares [Member] | Parent Company | ||||||||
Convertible redeemable preferred shares, par value | $ / shares | $ 0.00001 | |||||||
Convertible redeemable preferred shares, shares authorized | 273,360,850 | |||||||
Convertible redeemable preferred shares, shares issued | 273,360,850 | |||||||
Convertible redeemable preferred shares, shares outstanding | 273,360,850 | |||||||
Convertible redeemable preferred shares, liquidation value | ¥ | ¥ 0 | ¥ 595,962 |
FINANCIAL STATEMENT SCHEDULE _3
FINANCIAL STATEMENT SCHEDULE I - Condensed Statements Of Comprehensive Loss (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | |
Selling, general and administrative expenses | ¥ (102,769) | $ (15,136) | ¥ (108,196) | ¥ (84,953) |
Fair value change of contingent earn-out liabilities | 97,417 | 14,348 | 42,404 | 6,164 |
Income before equity in losses of subsidiaries and consolidated VIEs and VIE's subsidiaries | (1,500,777) | (221,041) | (448,307) | (426,435) |
Net loss | (1,533,592) | (225,874) | (498,242) | (499,859) |
Foreign currency translation adjustments | 24,265 | 3,574 | (7,621) | 4,551 |
Deemed dividend | (307,389) | (135,545) | ||
Comprehensive loss | (1,509,327) | (222,300) | (505,863) | (495,308) |
Parent Company | ||||
Selling, general and administrative expenses | (37,557) | (5,530) | (15,888) | (5,247) |
Interest income (expenses) | (42,507) | (6,260) | 1,761 | 2,096 |
Fair value change of contingent earn-out liabilities | 97,417 | 14,348 | 42,404 | 6,164 |
Income before equity in losses of subsidiaries and consolidated VIEs and VIE's subsidiaries | 17,353 | 2,558 | 28,277 | 3,013 |
Equity in losses of subsidiaries and consolidated VIE and VIE's subsidiaries | (1,550,994) | (228,439) | (526,614) | (502,935) |
Net loss | (1,533,641) | (225,881) | (498,337) | (499,922) |
Foreign currency translation adjustments | 24,265 | 3,574 | (7,621) | 4,551 |
Deemed dividend | (307,389) | (135,547) | ||
Comprehensive loss | ¥ (1,509,376) | $ (222,307) | ¥ (813,347) | ¥ (630,918) |
FINANCIAL STATEMENT SCHEDULE _4
FINANCIAL STATEMENT SCHEDULE I - Condensed Statements Of Cash Flows (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018CNY (¥) | |
Net cash used in operating activities | ¥ 54,841 | $ 8,078 | ¥ (88,189) | ¥ (117,048) |
Net cash used in investing activities | (138,670) | (20,406) | (351,450) | (674,298) |
Net cash provided by financing activities | (134,924) | (17,979) | 569,569 | 539,528 |
Effect of exchange rate changes | (295) | (104) | 2,132 | 3,455 |
Cash, cash equivalents and restricted cash at the beginning of the year | 250,814 | 35,090 | 118,752 | 367,115 |
Cash, cash equivalents and restricted cash at the end of the year | 31,766 | 4,679 | 250,814 | 118,752 |
Parent Company | ||||
Net cash used in operating activities | (17,452) | (2,570) | (20,149) | (3,805) |
Net cash used in investing activities | (478,685) | (70,503) | (460,663) | (341,213) |
Net cash provided by financing activities | 401,227 | 60,987 | 530,002 | 185,133 |
Effect of exchange rate changes | (232) | (1,180) | 2,087 | 3,455 |
Net (decrease) increase in cash and cash equivalents | (95,142) | (13,266) | 51,277 | (156,430) |
Cash, cash equivalents and restricted cash at the beginning of the year | 101,157 | 14,152 | 49,880 | 206,310 |
Cash, cash equivalents and restricted cash at the end of the year | ¥ 6,015 | $ 886 | ¥ 101,157 | ¥ 49,880 |
FINANCIAL STATEMENT SCHEDULE _5
FINANCIAL STATEMENT SCHEDULE I - Additional Information (Detail) | Sep. 30, 2020 |
Convenience translation rate of USD1.00 | 6.7896 |