Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2023 | Dec. 28, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | FLJ Group Limited | |
Document Type | 20FR12B | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false | |
Entity Central Index Key | 0001769256 | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Document Annual Report | false | |
Document Transition Report | false | |
Entity File Number | 001-39111 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | Room 1610 | |
Entity Address, Address Line Two | No.917, East Longhua Road | |
Entity Address, Address Line Three | Huangpu District | |
Entity Address, City or Town | Shanghai | |
Entity Address, Postal Zip Code | 200023 | |
Entity Address, Country | CN | |
Entity Interactive Data Current | Yes | |
Document Accounting Standard | U.S. GAAP | |
Business Contact | ||
Document Information Line Items | ||
Entity Address, Address Line One | Room 1610 | |
Entity Address, Address Line Two | No.917, East Longhua Road | |
Entity Address, Address Line Three | Huangpu District | |
Entity Address, City or Town | Shanghai | |
Entity Address, Postal Zip Code | 200023 | |
Entity Address, Country | CN | |
Contact Personnel Name | Chengcai Qu, Chief Executive Officer | |
Local Phone Number | +86-21-6422-8532 | |
City Area Code | 86-21-6422-8532 | |
Contact Personnel Email Address | ccqu@qk365.com | |
American depositary shares (one American depositary share representing six hundred thousand (600,000) Class A ordinary shares, par value US$0.0000001 per share) | ||
Document Information Line Items | ||
Trading Symbol | FLJ | |
Title of 12(b) Security | American depositary shares (one American depositary share representing six hundred thousand (600,000) Class A ordinary shares, | |
Security Exchange Name | NASDAQ | |
Class A ordinary shares, par value US$0.0000001 per share | ||
Document Information Line Items | ||
Title of 12(b) Security | Class A ordinary shares, par value US$0.0000001 per share | |
Security Exchange Name | NONE | |
No Trading Symbol Flag | true | |
Class A Ordinary Shares | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 2,587,892,046,400 | |
Class B Ordinary Shares | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 250,000,000,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 2,276 | $ 331 | ¥ 2,772 | $ 390 | ¥ 16,317 |
Restricted cash | 106 | 15 | 106 | 15 | 2,935 |
Accounts receivable, net | 2,301 | 335 | 752 | 106 | 370 |
Prepaid rent and deposit | 571 | ||||
Advances to suppliers | 8,527 | 1,242 | 8,501 | 1,195 | 12,933 |
Other current assets | 73,970 | 10,771 | 59,029 | 8,298 | 143,343 |
Total current assets | 87,180 | 12,694 | 71,160 | 10,004 | 176,670 |
Non-current assets: | |||||
Property and equipment, net | 342 | 50 | 500 | 70 | 38,940 |
Intangible assets, net | 13,475 | 1,894 | 152,464 | ||
Operating lease right of use assets | 417,556 | 60,801 | |||
Other assets | 10,321 | 1,503 | 10,405 | 1,464 | 9,556 |
Total non-current assets | 428,219 | 62,354 | 24,380 | 3,428 | 200,960 |
Total assets | 515,399 | 75,048 | 95,540 | 13,432 | 377,630 |
Current liabilities: | |||||
Accounts payable | 156,794 | 22,831 | 122,667 | 17,244 | 320,269 |
Amounts due to related parties | 5,394 | 785 | 4,831 | ||
Deferred revenue | 100,074 | 14,572 | 129,930 | 18,265 | 171,157 |
Short-term debt | 135,624 | 19,748 | 110,097 | 15,477 | 558,705 |
Rental instalment loans | 15,756 | 2,294 | 15,756 | 2,215 | 18,094 |
Deposits from tenants | 29,723 | 4,328 | 38,439 | 5,404 | 65,785 |
Contingent liabilities for payable for asset acquisition | 159,328 | 23,200 | 165,033 | 23,200 | 164,254 |
Operating lease liabilities, current | 228,655 | 33,295 | |||
Accrued expenses and other current liabilities | 103,870 | 15,126 | 81,649 | 11,480 | 1,049,361 |
Total current liabilities | 935,218 | 136,179 | 668,402 | 93,964 | 2,347,625 |
Operating lease liabilities, non-current | 188,901 | 27,506 | |||
Non-current liabilities: | |||||
Long-term debt | 201,041 | ||||
Convertible note, net | 313,870 | ||||
Total non-current liabilities | 514,911 | ||||
Total liabilities | 1,124,119 | 163,685 | 668,402 | 93,964 | 2,862,536 |
Commitments and contingencies | |||||
Deficit: | |||||
Treasury shares, at cost | (5) | ||||
Additional paid-in capital | 2,956,760 | 430,538 | 2,954,625 | 415,355 | 1,845,295 |
Accumulated deficit | (3,601,992) | (524,492) | (3,558,667) | (500,270) | (4,378,690) |
Accumulated other comprehensive income | 34,613 | 5,041 | 29,453 | 4,140 | 38,784 |
Total shareholders’ deficit | (608,720) | (88,637) | (572,862) | (80,532) | (2,494,506) |
Noncontrolling interest | 9,600 | ||||
Total deficit | (608,720) | (572,862) | (80,532) | (2,484,906) | |
Total liabilities and shareholders’ deficit | 515,399 | 75,048 | 95,540 | 13,432 | 377,630 |
Class A Ordinary Shares | |||||
Deficit: | |||||
Ordinary shares | 1,727 | 251 | 1,727 | 243 | 99 |
Class B Ordinary Shares | |||||
Deficit: | |||||
Ordinary shares | ¥ 172 | $ 25 | 11 | ||
Related Party | |||||
Current assets: | |||||
Amounts due from related parties | 201 | ||||
Current liabilities: | |||||
Amounts due to related parties | ¥ 4,831 | $ 679 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - ¥ / shares | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Class A Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | ¥ 0.00001 | ¥ 0.00001 | ¥ 0.00001 |
Ordinary shares, shares authorized | 37,500,000,000 | 37,500,000,000 | 37,500,000,000 |
Ordinary shares, shares issued | 25,878,920,464 | 25,878,920,464 | 1,544,097,151 |
Ordinary shares, shares outstanding | 25,878,920,464 | 25,878,920,464 | 1,466,997,151 |
Class B Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | ¥ 0.00001 | ¥ 0.00001 | ¥ 0.00001 |
Ordinary shares, shares authorized | 2,500,000,000 | 2,500,000,000 | 2,500,000,000 |
Ordinary shares, shares issued | 2,500,000,000 | 180,389,549 | |
Ordinary shares, shares outstanding | 2,500,000,000 | 180,389,549 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations and Comprehensive Loss ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Sep. 30, 2022 CNY (¥) ¥ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 CNY (¥) ¥ / shares shares | Sep. 30, 2020 CNY (¥) ¥ / shares shares | |
Net revenues: | |||||||
Net revenues | ¥ 199,670 | $ 29,075 | ¥ 364,214 | ¥ 652,333 | $ 91,703 | ¥ 1,036,206 | ¥ 1,207,963 |
Operating costs and expenses: | |||||||
Operating cost | (217,295) | (31,642) | (405,661) | (711,003) | (99,952) | (949,654) | (1,203,415) |
Selling and marketing expenses | (15) | (2) | (189) | (13) | (2) | (13,115) | (63,512) |
General and administrative expenses | (15,422) | (2,246) | (25,329) | (62,161) | (8,738) | (217,108) | (102,769) |
Research and development expenses | (1,308) | (190) | (1,853) | (2,795) | (393) | (7,768) | (24,934) |
Pre-operation expenses | (14,245) | ||||||
Impairment loss on long-lived assets | (10,474) | (1,525) | (100,156) | (100,156) | (14,080) | (199,575) | (846,766) |
Loss from disposal of property and equipment and intangible assets | (11,972) | (1,683) | (30,173) | (468,980) | |||
Other income (expense), net | 2,157 | 314 | (20,074) | (8,104) | (1,140) | (18,476) | 15,881 |
Total operating costs and expenses | (242,357) | (35,291) | (553,262) | (896,204) | (125,988) | (1,435,869) | (2,708,740) |
Loss from operations | (42,687) | (6,216) | (189,048) | (243,871) | (34,285) | (399,663) | (1,500,777) |
Interest expense, net | (638) | (93) | (54,174) | (66,892) | (9,403) | (127,300) | (130,206) |
Inducement expenses | (423,686) | (59,561) | |||||
Gains from deconsolidation of VIE’s subsidiaries | 1,554,450 | 218,521 | |||||
Debt extinguishment loss | (41,964) | ||||||
Foreign exchange loss, net | (5) | (244) | (62) | ||||
Fair value change of contingent earn-out liabilities | 97,417 | ||||||
(Loss) income before income taxes | (43,325) | (6,309) | (243,227) | 820,001 | 115,272 | (569,171) | (1,533,628) |
Income tax expense | 3 | (21) | (3) | (31) | (13) | ||
Net (loss) income | ¥ (43,325) | (6,309) | ¥ (243,224) | 819,980 | 115,269 | (569,202) | (1,533,641) |
Other comprehensive income, net of tax of nil: | |||||||
Less: net loss attributable to noncontrolling interests | (43) | (6) | (28) | (49) | |||
Net loss attributable to FLJ Group Limited’s ordinary shareholders | $ (43,325) | ¥ 820,023 | $ 115,275 | ¥ (569,174) | ¥ (1,533,592) | ||
Net (loss) earnings per share attributable to ordinary shareholders of FLJ Group Limited—Basic (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ 0 | $ 0 | ¥ (0.14) | ¥ 0.08 | $ 0.01 | ¥ (0.39) | ¥ (1.14) |
Weighted average number of ordinary shares used in computing net loss per share—Basic (in Shares) | 27,715,937,039 | 27,715,937,039 | 1,728,612,425 | 10,258,424,457 | 10,258,424,457 | 1,460,692,909 | 1,351,127,462 |
Foreign currency translation adjustments | ¥ 5,160 | $ 751 | ¥ 3,642 | ¥ (9,331) | $ (1,312) | ¥ 20,427 | ¥ 24,265 |
Comprehensive (loss) income | (38,165) | (5,558) | (239,582) | 810,649 | 113,957 | (548,775) | (1,509,376) |
Less: comprehensive loss attributable to noncontrolling interests | (43) | (6) | (28) | (49) | |||
Comprehensive (loss) income attributable to FLJ Group Limited’s ordinary shareholders | 810,692 | 113,963 | (548,747) | (1,509,327) | |||
Rental service | |||||||
Net revenues: | |||||||
Net revenues | 175,148 | 25,504 | 332,783 | 565,759 | 79,533 | 939,169 | 1,105,172 |
Value-added services and others | |||||||
Net revenues: | |||||||
Net revenues | ¥ 24,522 | $ 3,571 | ¥ 31,431 | ¥ 86,574 | $ 12,170 | ¥ 97,037 | ¥ 102,791 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 CNY (¥) ¥ / shares shares | Sep. 30, 2021 CNY (¥) ¥ / shares shares | Sep. 30, 2020 CNY (¥) ¥ / shares shares | |
Income Statement [Abstract] | |||
Costs and expenses charged by related parties (in Dollars and Yuan Renminbi) | ¥ | ¥ 47,464 | ||
Net (loss) earnings per share attributable to ordinary shareholders of FLJ Group Limited—Diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ 0.08 | ¥ (0.39) | ¥ (1.14) |
Weighted average number of ordinary shares used in computing net loss per share —Diluted | shares | 10,258,424,457 | 1,460,692,909 | 1,351,127,462 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Changes in Deficit ¥ in Thousands, $ in Thousands | CNY (¥) shares | USD ($) shares | Treasury stock CNY (¥) shares | Additional paid in capital CNY (¥) | Accumulated other comprehensive (loss) income CNY (¥) | Accumulated deficit CNY (¥) | Total CNY (¥) | Noncontrolling interests CNY (¥) | Class A Ordinary shares CNY (¥) shares | Class B Ordinary shares CNY (¥) shares | Series A non-redeemable preferred shares CNY (¥) shares |
Balance at Sep. 30, 2019 | ¥ (2,236,351) | ¥ (5,908) | ¥ (2,275,924) | ¥ (2,246,028) | ¥ 9,677 | ¥ 4 | ¥ 23 | ¥ 35,777 | |||
Balance (in Shares) at Sep. 30, 2019 | shares | 59,731,861 | 370,718,629 | 255,549,510 | ||||||||
Issuance of ordinary shares in connection with initial public offering (“IPO”), net off issuance of cost of RMB 29,289 | 289,027 | 289,021 | 289,027 | ¥ 6 | |||||||
Issuance of ordinary shares in connection with initial public offering (“IPO”), net off issuance of cost of RMB 29,289 (in Shares) | shares | 93,150,000 | ||||||||||
Conversion of Series Anon-redeemable preferred shares into ordinary shares | 35,760 | ¥ 17 | ¥ (35,777) | ||||||||
Conversion of Series Anon-redeemable preferred shares into ordinary shares (in Shares) | shares | 255,549,510 | (255,549,510) | |||||||||
Conversion of mezzanine equity into ordinary shares | 1,425,478 | 1,425,436 | 1,425,478 | ¥ 42 | |||||||
Conversion of mezzanine equity into ordinary shares (in Shares) | shares | 656,860,850 | ||||||||||
Repurchase of American Depositary Shares (“ADS”) from certain investors into treasury shares | (298,110) | ¥ (298,110) | (298,110) | ||||||||
Repurchase of American Depositary Shares (“ADS”) from certain investors into treasury shares (in Shares) | shares | (77,250,000) | ||||||||||
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 | ||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | ¥ 12 | ¥ (12) | |||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares (in Shares) | shares | 190,329,080 | (190,329,080) | |||||||||
Net income (loss) | (1,533,641) | (1,533,592) | (1,533,592) | (49) | |||||||
Foreign currency translation adjustments | 24,265 | 24,265 | 24,265 | ||||||||
Balance at Sep. 30, 2020 | (1,994,450) | ¥ (298,110) | 2,085,099 | 18,357 | (3,809,516) | (2,004,078) | 9,628 | ¥ 81 | ¥ 11 | ||
Balance (in Shares) at Sep. 30, 2020 | shares | (77,250,000) | 1,255,621,301 | 180,389,549 | ||||||||
Issuance of ordinary shares to settle payable for asset acquisition | 3 | (8) | 3 | ¥ 11 | |||||||
Issuance of ordinary shares to settle payable for asset acquisition (in Shares) | shares | 186,375,850 | ||||||||||
Reissuance of treasury shares to as debt extinguishment cost | 41,964 | ¥ 298,110 | (256,146) | 41,964 | |||||||
Reissuance of treasury shares to as debt extinguishment cost (in Shares) | shares | 77,250,000 | ||||||||||
Exercise of share-based compensation | (2) | ¥ 2 | |||||||||
Exercise of share-based compensation (in Shares) | shares | 25,000,000 | ||||||||||
Issuance and repurchase of ordinary shares | ¥ (5) | ¥ 5 | |||||||||
Issuance and repurchase of ordinary shares (in Shares) | shares | (77,100,000) | 77,100,000 | |||||||||
Repurchase of American Depositary Shares (“ADS”) from certain investors into treasury shares (in Shares) | shares | 77,250,000 | 77,250,000 | |||||||||
Share-based compensation | ¥ 15,806 | 15,806 | 15,806 | ||||||||
Warrants issued in connection with convertible notes | 546 | 546 | 546 | ||||||||
Net income (loss) | (569,202) | (569,174) | (569,174) | (28) | |||||||
Foreign currency translation adjustments | 20,427 | 20,427 | 20,427 | ||||||||
Balance at Sep. 30, 2021 | (2,484,906) | ¥ (5) | 1,845,295 | 38,784 | (4,378,690) | (2,494,506) | 9,600 | ¥ 99 | ¥ 11 | ||
Balance (in Shares) at Sep. 30, 2021 | shares | (77,100,000) | 1,544,097,151 | 180,389,549 | ||||||||
Issuance of ordinary shares to settle acquisition of certain assets from two third parties | (1) | ¥ 1 | |||||||||
Issuance of ordinary shares to settle acquisition of certain assets from two third parties (in Shares) | shares | 7,662,060 | ||||||||||
Share-based compensation | 399 | 399 | 399 | ||||||||
Warrants issued in connection with convertible notes | 1,420 | 1,420 | 1,420 | ||||||||
Net income (loss) | (243,224) | (243,224) | (243,224) | ||||||||
Foreign currency translation adjustments | 3,642 | 3,642 | 3,642 | ||||||||
Balance at Mar. 31, 2022 | (2,722,669) | ¥ (5) | 1,847,113 | 42,426 | (4,621,914) | (2,732,269) | 9,600 | ¥ 100 | ¥ 11 | ||
Balance (in Shares) at Mar. 31, 2022 | shares | (77,100,000) | 1,551,759,211 | 180,389,549 | ||||||||
Balance at Sep. 30, 2021 | ¥ (2,484,906) | ¥ (5) | 1,845,295 | 38,784 | (4,378,690) | (2,494,506) | 9,600 | ¥ 99 | ¥ 11 | ||
Balance (in Shares) at Sep. 30, 2021 | shares | (77,100,000) | 1,544,097,151 | 180,389,549 | ||||||||
Exercise of share-based compensation (in Shares) | shares | 115,180,054 | 115,180,054 | |||||||||
Issuance of ordinary shares to settle acquisition of certain assets from two third parties | (1) | ¥ 1 | |||||||||
Issuance of ordinary shares to settle acquisition of certain assets from two third parties (in Shares) | shares | 7,662,060 | ||||||||||
Issuance of ordinary shares upon the conversion of convertible bond | 701,403 | 700,372 | 701,403 | ¥ 1,031 | |||||||
Issuance of ordinary shares upon the conversion of convertible bond (in Shares) | shares | 15,414,467,400 | ||||||||||
Issuance of ordinary shares to settle short-term borrowings | 392,104 | 391,527 | 392,104 | ¥ 577 | |||||||
Issuance of ordinary shares to settle short-term borrowings (in Shares) | shares | 8,617,124,250 | ||||||||||
Acquisition of noncontrolling interest | (9,800) | (243) | (243) | (9,557) | |||||||
Transfer of treasury stock to a third party | 6,497 | ¥ 5 | 6,492 | 6,497 | |||||||
Transfer of treasury stock to a third party (in Shares) | shares | 77,100,000 | ||||||||||
Share-based compensation | 9,771 | 9,763 | 9,771 | ¥ 8 | |||||||
Share-based compensation (in Shares) | shares | 115,180,054 | ||||||||||
Warrants issued in connection with convertible notes | 1,420 | 1,420 | 1,420 | ||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares | ¥ 11 | ¥ (11) | |||||||||
Redesignation of Class B Ordinary Shares into Class A Ordinary Shares (in Shares) | shares | 180,389,549 | (180,389,549) | |||||||||
Net income (loss) | 819,980 | $ 115,269 | 820,023 | 820,023 | (43) | ||||||
Foreign currency translation adjustments | (9,331) | (1,312) | (9,331) | (9,331) | |||||||
Balance at Sep. 30, 2022 | (572,862) | (80,532) | 2,954,625 | 29,453 | (3,558,667) | (572,862) | ¥ 1,727 | ||||
Balance (in Shares) at Sep. 30, 2022 | shares | 25,878,920,464 | ||||||||||
Issuance of Class B Ordinary shares | (172) | ¥ 172 | |||||||||
Issuance of Class B Ordinary shares (in Shares) | shares | 2,500,000,000 | ||||||||||
Share-based compensation | 2,307 | 2,307 | 2,307 | ||||||||
Net income (loss) | (43,325) | (6,309) | (43,325) | (43,325) | |||||||
Foreign currency translation adjustments | 5,160 | $ 751 | 5,160 | 5,160 | |||||||
Balance at Mar. 31, 2023 | ¥ (608,720) | ¥ 2,956,760 | ¥ 34,613 | ¥ (3,601,992) | ¥ (608,720) | ¥ 1,727 | ¥ 172 | ||||
Balance (in Shares) at Mar. 31, 2023 | shares | 25,878,920,464 | 2,500,000,000 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Changes in Deficit (Parentheticals) ¥ in Thousands | 12 Months Ended |
Sep. 30, 2020 CNY (¥) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of ordinary shares in connection with initial public offering (“IPO”), net off issuance of cost | ¥ 29,289 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | |
Operating activities: | |||||||
Net (loss) income | ¥ (43,325) | $ (6,309) | ¥ (243,224) | ¥ 819,980 | $ 115,269 | ¥ (569,202) | ¥ (1,533,641) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||||||
Share-based compensation | 2,307 | 399 | 9,771 | 1,374 | 15,806 | 16,045 | |
Depreciation and amortization | 27,399 | 3,852 | 79,259 | 263,038 | |||
Loss from disposal of property, plant and equipment and intangible assets | 11,972 | 1,683 | 30,173 | 468,980 | |||
Accretion of interest expense | 1,222 | 172 | 1,988 | 214 | |||
Fair value change of contingent earn-out liabilities | (97,417) | ||||||
Deferred rent | (214,557) | (201,127) | |||||
Writing off doubtful accounts | 150,155 | ||||||
Impairment loss | 10,474 | 1,525 | 100,156 | 100,156 | 14,080 | 199,575 | 846,766 |
Inducement expenses | 423,686 | 59,561 | |||||
Gains from deconsolidation of VIE’s subsidiaries | (1,554,450) | (218,521) | |||||
Debt extinguishment loss | 41,964 | ||||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (391) | (55) | 1,573 | (644) | |||
Amounts due from related parties | 201 | 28 | (33) | 5,419 | |||
Prepaid rent and deposit | 234 | 33 | 37,623 | 146,913 | |||
Advances to suppliers | (4,743) | (667) | 9,595 | 47,985 | |||
Other current assets | 59,240 | 8,328 | 23,460 | 44,756 | |||
Other assets | (849) | (119) | 47,577 | (51,187) | |||
Accounts payable | 90,736 | 12,755 | 25,800 | 115,201 | |||
Amounts due to related parties | 97 | 14 | (6,594) | 3,473 | |||
Deferred revenue | (40,669) | (5,717) | (18,631) | (127,947) | |||
Deposits from tenants | (25,930) | (3,645) | (16,406) | (161,525) | |||
Accrued expenses and other current liabilities | 42,749 | 6,010 | 51,214 | 269,539 | |||
Cash and cash equivalents | 2,276 | 2,772 | 16,317 | 22,879 | |||
Restricted cash | 106 | 15 | 106 | 15 | 2,935 | 8,887 | |
Total cash, cash equivalents and restricted cash | 2,382 | 8,097 | 2,878 | 19,252 | 31,766 | ||
Net cash used in operating activities | (25,478) | (3,713) | (27,545) | (39,589) | (5,565) | (109,661) | 54,841 |
Investing activities: | |||||||
Purchases of property and equipment | (2) | (99,172) | |||||
Payment for asset acquisition | (6,484) | (39,498) | |||||
Acquisition of non-controlling interest | (9,800) | (1,378) | |||||
Disposal of cash in deconsolidated subsidiaries, VIE and VIE’s subsidiaries | (1,668) | (234) | |||||
Net cash used in investing activities | (11,468) | (1,612) | (6,486) | (138,670) | |||
Financing activities: | |||||||
Proceeds from IPO, net off issuance cost | 289,027 | ||||||
Proceeds from issuance of convertible notes | 17,832 | 20,007 | 2,813 | 113,236 | 163,565 | ||
Proceeds from short-term borrowings | 25,527 | 3,717 | |||||
Payment for repurchase of ADS from certain investors into treasury shares | (248,859) | ||||||
Proceeds from short-term bank borrowings | 6,544 | 920 | 39,652 | 351,046 | |||
Repayment of short-term bank borrowings | (4,500) | (65,000) | |||||
Proceeds from long-term bank borrowings | 75,329 | 150,000 | |||||
Repayment of long-term bank borrowings | (37,090) | (122,548) | |||||
Proceeds from rental instalment loans | 258,097 | ||||||
Repayment of rental instalment loans | (1,300) | (1,976) | (278) | (85,026) | (924,171) | ||
Proceeds from capital lease and other financing arrangement payable | 65,415 | ||||||
Repayment of capital lease and other financing arrangement payable | (51,496) | ||||||
Proceeds from borrowings from related parties | 4,734 | 665 | |||||
Net cash provided by financing activities | 25,527 | 3,717 | 16,532 | 29,309 | 4,120 | 101,601 | (134,924) |
Effect of foreign exchange rate changes | (545) | (63) | (142) | 5,374 | 756 | 2,032 | (295) |
Net decrease in cash, cash equivalents and restricted cash | (496) | (59) | (11,155) | (16,374) | (2,301) | (12,514) | (219,048) |
Cash, cash equivalents and restricted cash at the beginning of the period | 2,878 | 405 | 19,252 | 19,252 | 2,706 | 31,766 | 250,814 |
Cash, cash equivalents and restricted cash at the end of the period | 2,382 | 346 | 8,097 | 2,878 | 405 | 19,252 | 31,766 |
Supplemental schedule of non-cash investing and financing activities: | |||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 547,440 | 79,713 | |||||
Supplemental disclosure of cash flow information: | |||||||
Interest paid, net of amounts capitalized | (1,017) | (16,628) | |||||
Income taxes paid | ¥ 4 | (4) | 0 | (3) | (90) | ||
Purchases of property and equipment included in payables | (97,835) | ||||||
Acquisition of rental assets financed by ADS | (22,540) | ||||||
Asset acquisition financed by payables and ADS | (455,541) | ||||||
Asset acquisition settled by ordinary shares | (164,256) | ||||||
Payment of debt extinguishment cost by ordinary shares | (41,961) | ||||||
Convertible note converted into ordinary shares | (333,679) | (46,908) | |||||
Short-term borrowings settled by ordinary shares | (217,477) | (30,572) | |||||
Short-term borrowings settled by transfer of treasury stocks | (6,497) | (913) | |||||
Conversion of Series Anon-redeemable preferred shares and mezzanine into ordinary shares | (1,425,478) | ||||||
Issuance of convertible notes to repurchase ADS from an investor | ¥ 49,251 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows (Parentheticals) ¥ in Thousands | 12 Months Ended |
Sep. 30, 2020 CNY (¥) | |
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 | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Organization and Principal Activities [Abstract] | ||
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES FLJ Group Limited (formerly known as “Q&K International Group Limited”) (the “Company” or “FLJ”), its subsidiaries and consolidated variable interest entities (the “Group”) is a rental apartment operation platform in the People’s Republic of China (the “PRC”), that provides rental and value-added services to young, emerging urban residents since 2012. The Group sources and converts apartments to standardized furnished rooms and leases to young people seeking affordable residence in cities in the PRC. The Company has changed its corporate name from “Q&K International Group Limited” to “FLJ Group Limited”, effective on September 13, 2022. In addition, the Company began trading under the new ticker symbol “FLJ” on the NASDAQ effective on September 26, 2022. Effective on March 7, 2022, the Group changed the ratio of the American depositary shares (“ADSs”) representing its Class A ordinary shares from one (1) ADS representing thirty (30) Class A ordinary share to one (1) ADS representing one hundred and fifty (150) Class A ordinary shares. For the ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split. There will be no change to the Group’s Class A ordinary shares. The exchange of every five (5) then-held (old) ADSs for one (1) new ADS will occur automatically with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank, in each case as of the effective date for the ADS ratio change. No fractional new ADSs will be issued in connection with the change in the ADS ratio. On October 26, 2021 and December 17, 2021, the Group transferred of all of its equity interest in Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting”) and Qingke (China) Limited (“Q&K HK”), respectively, to Wangxiancai Limited, which is a related party of the Group, and is beneficially owned by the legal representative and executive director of one of the Group’s subsidiaries (the “Equity Transfer”). The Equity Transfer was made at nominal consideration. As of September 30, 2022, the Group no longer conducts substantial operation through any variable interest entity. As of September 30, 2022, four of the subsidiaries of Shanghai Qingke E-Commerce Co., Ltd. (“Q&K E- Commerce”) filed the voluntary petition for bankruptcy under the Article 2 of the PRC Enterprise Bankruptcy Law with Shanghai Third Intermediary Court (“Court”), and the Court announced the effectiveness of the petition and the administrator of bankruptcy was assigned on board. Accordingly the Group had no control over the allocation of remaining assets in liquidation of these subsidiaries and their subsidiaries (collectively “Deconsolidated VIE’s Subsidiaries”), accordingly the Company deconsolidated these deconsolidated subsidiaries. The management believed the deconsolidation of Deconsolidated VIE’s Subsidiaries does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The deconsolidation is not accounted as discontinued operations in accordance with ASC 205-20. The Group did not account for the transfer of equity interest in Q&K HK, Q&K Investment Consulting and Q&K E-commerce as a discontinued operation, as FLJ is the primary beneficiary of Q&K HK, Q&K Investment Consulting and Q&K E-commerce as FLJ has the power to direct the activities of these companies that most significantly impact their economic performance and FLJ has the obligation to absorb losses of these companies that could potentially be significant to these companies since their inception. The Group accounted for Q&K HK, Q&K Investment Consulting and Q&K E-commerce as variable interest entities. Accordingly, the accompanying consolidated financial statements include the financial statements of Q&K HK, Q&K Investment Consulting and Q&K E-commerce. As of March 31, 2023, the Group’s significant subsidiaries and VIE: Entity Date of Place of Percentage of Principal Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding Fenglinju (China) Hong Kong Limited (“Fenglinju”) October 21, 2021 Hong Kong 100 % Holding Haoju (Shanghai) Artificial Intelligence Technology Co., Ltd (formerly known as “Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd.”) (“Q&K AI”) May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment Management Co., Ltd June 19, 2020 PRC 100 % Operating VIE: QingKe (China) Limited (“Q&K HK”) July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting”) April 2, 2015 PRC 100 % Holding and Operating Shanghai Qingke E-Commerce Co., Ltd. (“Q&K E- Commerce”) August 2, 2013 PRC 100 % Holding and Operating | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES FLJ Group Limited (formerly known as “Q&K International Group Limited”) (the “Company” or “FLJ”), its subsidiaries and consolidated variable interest entities (the “Group”) is a rental apartment operation platform in the People’s Republic of China (the “PRC”), that provides rental and value-added services to young, emerging urban residents since 2012. The Group sources and converts apartments to standardized furnished rooms and leases to young people seeking affordable residence in cities in the PRC. The Company has changed its corporate name from “Q&K International Group Limited” to “FLJ Group Limited”, effective on September 13, 2022. In addition, the Company began trading under the new ticker symbol “FLJ” on the NASDAQ effective on September 26, 2022. Effective on March 7, 2022, the Group changed the ratio of the American depositary shares (“ADSs”) representing its Class A ordinary shares from one (1) ADS representing thirty (30) Class A ordinary share to one (1) ADS representing one hundred and fifty (150) Class A ordinary shares. For the ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split. There will be no change to the Group’s Class A ordinary shares. The exchange of every five (5) then-held (old) ADSs for one (1) new ADS will occur automatically with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank, in each case as of the effective date for the ADS ratio change. No fractional new ADSs will be issued in connection with the change in the ADS ratio. On October 26, 2021 and December 17, 2021, the Group transferred of all of its equity interest in Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting”) and Qingke (China) Limited (“Q&K HK”), respectively, to Wangxiancai Limited, which is a related party of the Group, and is beneficially owned by the legal representative and executive director of one of the Group’s subsidiaries (the “Equity Transfer”). The Equity Transfer was made at nominal consideration. As of the date of this annual report, the Group no longer conducts substantial operation through any variable interest entity. As of September 30, 2022, four of the subsidiaries of Shanghai Qingke E-Commerce Co., Ltd. (“Q&K E- Commerce”) filed the voluntary petition for bankruptcy under the Article 2 of the PRC Enterprise Bankruptcy Law with Shanghai Third Intermediary Court (“Court”), and the Court announced the effectiveness of the petition and the administrator of bankruptcy was assigned on board. Accordingly the Group had no control over the allocation of remaining assets in liquidation of these subsidiaries and their subsidiaries (collectively “Deconsolidated VIE’s Subsidiaries”), accordingly the Company deconsolidated these deconsolidated subsidiaries. Upon the deconsolidation of Deconsolidated VIE’s Subsidiaries, the Group would continue its effort to provide rental and value-added services in China. The management believed the deconsolidation does not represent a strategic shift because it is not changing the way it is running its business. The Group has not shifted the nature of its operations or the major geographic market area. Prior to the deconsolidation, operating revenue generated through the subsidiaries of the VIE amounted to RMB 1,635 for the period from October 1, 2021 through deconsolidation dates, accounting for 0.2% of consolidated revenues for the year ended September 30, 2022. Net loss amounted to RMB40,902 for the period from October 1, 2021 through deconsolidation dates, the abstract amount accounted for 5% of the consolidated net income of the Company for the year ended September 30, 2022. On the deconsolidation date, the net deficit of Deconsolidated VIE’s Subsidiaries was RMB 2,231,140 and the Group wrote off investments of RMB 500,000 in Deconsolidated VIE’s Subsidiaries, and waived amounts of RMB 176,690 due from Deconsolidated VIE’s Subsidiaries. The Group recognized gains of RMB 1,554,450 from deconsolidation of Deconsolidated VIE’s Subsidiaries. The management believed the deconsolidation of Deconsolidated VIE’s Subsidiaries does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The deconsolidation is not accounted as discontinued operations in accordance with ASC 205-20. The Group did not account for the transfer of equity interest in Q&K HK, Q&K Investment Consulting and Q&K E-commerce as a discontinued operation, as FLJ is the primary beneficiary of Q&K HK, Q&K Investment Consulting and Q&K E-commerce as FLJ has the power to direct the activities of these companies that most significantly impact their economic performance and FLJ has the obligation to absorb losses of these companies that could potentially be significant to these companies since their inception. The Group accounted for Q&K HK, Q&K Investment Consulting and Q&K E-commerce as variable interest entities. Accordingly, the accompanying consolidated financial statements include the financial statements of Q&K HK, Q&K Investment Consulting and Q&K E-commerce. For the year ended September 30, 2022, operating revenue generated through Q&K HK, Q&K Investment Consulting and Q&K E-commerce were RMB 1,635, accounting for 0.3% of consolidated revenues, and net loss amounted to RMB43,940, the abstract amount accounting for 5% of the consolidated net income of the Company. As of September 30, 2022, the Group’s significant subsidiaries and VIE: Entity Date of Place of Percentage of Principal Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding Fenglinju (China) Hong Kong October 21, 2021 Hong Kong 100 % Holding Haoju(shanghai) Artificial May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment June 19, 2020 PRC 100 % Operating VIE: QingKe (China) Limited July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., April 2, 2015 PRC 100 % Holding and Operating Shanghai Qingke E-Commerce Co., August 2, 2013 PRC 100 % Holding and Operating |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Summary of Principal Accounting Policies [Abstract] | ||
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the Group’s audited consolidated financial statements for the years ended September 30, 2022 filed on February 15, 2022. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Group believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Group’s consolidated financial statements for the year ended September 30, 2022. The results of operations for the six months ended March 31, 2022 and 2023 are not necessarily indicative of the results for the full years. Going concern The Group has been incurring losses from operations since its inception. Accumulated deficits amounted to RMB 3,558,667 and RMB 3,601,992 as of September 30, 2022 and March 31, 2023, respectively. Net cash used in operating activities were RMB 27,545 and RMB 25,478 for the six months ended March 31, 2022 and 2023, respectively. As of September 30, 2022 and March 31, 2023, current liabilities exceeded current assets by RMB 597,242 and RMB 848,038, respectively. These factors raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Group is unable to continue as a going concern. The Group has adopted a defensive strategy after a prudent assessment of the broader macroeconomic downturn since COVID-19 by consolidating internal resources, further improving operating efficiencies and focusing on asset quality improvement rather than aggressive expansion. The Group’s number of rental units contracted as well as number of available rental units decreased by 48.5% from March 31, 2022 to March 31, 2023, as the Group continued to optimize its rental asset portfolio. On the other hand, the Group’s total operating cost and expenses decreased by 56.2% from RMB553.3 million (US$87.3 million) in the six months ended March 31, 2022 to RMB242.4 million (US$35.3 million) in the six months ended March 31, 2023 and its net loss narrowed by 82.2% from RMB243.2 million (US$38.4 million) in the six months ended March 31, 2022 to RMB43.3 million (US$6.3 million) in the six months ended March 31, 2023. The Group intends to meet the cash requirements for the next 12 months from the issuance date of this report through a combination of bank loans and short-term loan from certain third parties, issuance of ordinary shares or other equity-linked securities. In addition, the Group has continued to adopt the defensive strategy mentioned above and optimize its rental asset portfolio. The Group’s number of rental units contracted and available rental units decreased from 55,177 as of March 31, 2022 to 28,400 as of March 31, 2023 during the same period, whereas its loss from operation decreased from RMB 189.0 million in the six months ended March 31, 2022 to RMB42.7 million in the six months ended March 31, 2023. The Group will also focus on the follow activity: ● On October 26, 2022, the Company’s Form F-3 to offer up to a total amount of $300 million was declared effective. The Company plans to raise funds under the Form F-3 to support the Company’s operations. The Management plan cannot alleviate the substantial doubt of the Group’s ability to continue as a going concern. There can be no assurance that the Group will be successful in achieving its strategic plans, that the Group’s future capital raises will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or with acceptable terms, if at all. If the Group is unable to raise sufficient financing or events or circumstances occur such that the Group is not able to achieve ideal optimization of its asset portfolio, the Group will be required to reduce certain discretionary spending, alter or scale back research and development programs, or be unable to fund capital expenditures, which would have a material adverse effect on the Group’s financial position, results of operations, cash flows, and ability to achieve its intended business objectives. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the unaudited condensed consolidated financial statements have been prepared on a basis that assumes the Group will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Financial statement amounts and balances of the VIE and its subsidiaries The following financial statement amounts and balances of the Q&K HK, Q&K Investment Consulting and Q&K E-Commerce (collectively “VIE entities”) and their subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The revenues, net loss and cash flows for the six months ended March 31, 2022 represented the amounts of Q&K HK and Q&K Investment Consulting for the period from dates of equity transfer through March 31, 2022, and the amounts of the amounts of Q&K E-Commerce and its subsidiaries for the six months ended March 31, 2022. The revenues, net loss and cash flows for the six months ended March 31, 2023 represented the amounts of VIE entities for the six months ended March 31, 2023. As of September 30, As of March 31, 2022 2023 RMB RMB USD ASSETS Cash and cash equivalents 62 63 9 Advances to suppliers 6,131 6,136 893 Other current assets 2,572 2,572 375 Other assets 98 98 14 Total assets 8,863 8,869 1,291 LIABILITIES Accounts payable 34 34 5 Deferred revenue 16 16 2 Short-term debt 13,000 13,000 1,893 Accrued expenses and other current liabilities 67,908 68,124 9,920 Total liabilities 80,958 81,174 11,820 For the Six Months Ended 2022 2023 RMB RMB USD Net revenues 1,621 — — Net loss (41,909 ) (221 ) (32 ) Net cash used in operating activities (10,773 ) 1 0 Net cash provided by investing activities — — — Net cash provided by financing activities — — — The consolidated VIE entities and their subsidiaries contributed 0.4% and nil There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE entities. However, the Company has provided and will continue to provide financial support to the VIE considering the business requirements of the VIE entities, as well as the Company’s own business objectives in the future. There are no assets held in the VIE entities and its subsidiaries that can be used only to settle obligations of the VIE entities and their subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE entities and their subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE entities do not have recourse to the general credit of the Group for any of the liabilities of the VIE entities. Relevant PRC laws and regulations restrict the VIE entities from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Group in the form of loans and advances or cash dividends. Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. For the six months ended March 31, 2022 and 2023, the Group recognized impairment of RMB 100,156 and RMB 10,474 against trademark and apartment rental contracts ( See Note 5 – Intangible assets Revenue Recognition The Group sources apartments from landlords and convert them into standardized furnished rooms to lease to tenants seeking affordable residences in China. Revenues are primarily derived from rental service and value-added services. Rental Service Revenues Rental service revenues are primarily derived from the lease payments from tenants and are recorded net of tax. The Group typically enters into 26-month leases with tenants, a majority of which have a lock-in period of 12 months or shorter. The lock-in period represents the term during which termination will result in the forfeiture of deposit, which is typically one or two months’ rent. The Group determines that the lock-in period is the lease term under ASC 840. When tenants terminate their leases, the Group returns unused portions of any prepaid rentals to the tenant within a prescribed period of time. Deposit can only be returned for termination after the lock-in period. Monthly rent is fixed throughout the lock-in period and there is no rent-free period or rent escalations during the period. The Group determines all lease arrangements with tenants are operating leases since the benefits and risks incidental to ownership remains with the Group. Revenue is recognized on a straight-line basis starting from the commencement date stated in the lease agreements. Value-added Services and Others Value-added services and others primarily consist of fees received from the tenants from provision of internet connection and utility services as part of the lease agreement. The service fees are fixed in the agreements and recognized on a monthly basis during the period of the lease term. The service fee are recognized on a gross basis as the Group has latitude in determining prices and bear inventory risks. Operating lease The Company adopted the ASU 2016-02, Leases (Topic 842) on October 1, 2022 using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases apartments from landlords, which are classified as operating leases in accordance with Topic 842. Operating leases are required to record in the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease exemption as the lease terms are 12 months or less. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. There was no | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES Basis of presentation As of and for the years ended September 30, 2020 and 2021, the consolidated financial statements include the financial statements of the Group, its subsidiaries and consolidated variable interest entity and its subsidiaries. As of and for the year ended September 30, 2022, the consolidated financial statements include the financial statements of the Group, its subsidiaries and the consolidated variable interest entity. All intercompany transactions and balances are eliminated on consolidation. 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 4,378,690 and RMB 3,558,667 as of September 30, 2021 and 2022, respectively. Net cash used in operating activities were RMB 109,661 and RMB 39,589 for the years ended September 30, 2021 and 2022, respectively, while the Group generated cash of RMB 54,841 from operating activities for the year ended September 30, 2020. As of September 30, 2021 and 2022, current liabilities exceeded current assets by RMB 2,170,955 and RMB 597,242, respectively. In addition, the Group’s operations have been affected by the outbreak and spread of the coronavirus disease 2019 (COVID-19). During the period, the Group 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 years ended September 30, 2020, 2021 and 2022, the average month-end occupancy rate and the rental spread margin before discount for rental prepayments decreased as compared to fiscal year 2019 mainly due to the impact of COVID-19. These factors raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Group is unable to continue as a going concern. The Group 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 ordinary shares, principal shareholder’s financial support. The Group will focus on the following activities: ● On October 26, 2022, the Company’s Form F-3 to offer up to a total amount of $300 million was declared effective. The Company plans to raise funds under the Form F-3 to support the Company’s operations; and ● In January 2023, a shareholder of the Group, has agreed to consider providing 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. The Management plan cannot alleviate the substantial doubt of the Group’s ability to continue as a going concern. There can be no assurance that the Group will be successful in achieving its strategic plans, that the Group’s future capital raises will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or with acceptable terms, if at all. If the Group is unable to raise sufficient financing or events or circumstances occur such that the Group does not meet its strategic plans, the Group will be required to reduce certain discretionary spending, alter or scale back research and development programs, or be unable to fund capital expenditures, which would have a material adverse effect on the Group’s financial position, results of operations, cash flows, and ability to achieve its intended business objectives. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the consolidated financial statements have been prepared on a basis that assumes the Group will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Principles of consolidation The consolidated financial statements include the financial statements of the Group, its subsidiaries and consolidated variable interest entity and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Upon the transfer of equity in Q&K HK and Q&K Investment Consulting on December 17, 2021 and October 26, 2021, respectively, the Group became primary beneficiary of the two former subsidiaries. Since the dates of equity transfer, the Group consolidated Q&K HK and Q&K Investment Consulting as variable interest entities. 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 its respective shareholders through which the Group became the primary beneficiary of Q&K E-Commerce and its subsidiaries. The following is a summary of the key VIE Agreements: Shareholder Voting Proxy Agreement Q&K Investment Consulting, Q&K E-Commerce and the shareholders of Q&K E-Commerce entered into a shareholder voting proxy agreement on April 21, 2015. Pursuant to the voting proxy agreement, each shareholder of Q&K E-Commerce irrevocably authorizes any person(s) designated by Q&K Investment Consulting to act as his or her attorney-in-fact to exercise all of such shareholder’s voting and other rights associated with the shareholder’s equity interest in Q&K E-Commerce, such as the right to appoint or remove directors, supervisors and officers, as well as the right to sell, transfer, pledge and dispose of all or a portion of the shares held by such shareholder. The shareholder voting proxy agreement will remain in force unless Q&K Investment Consulting gives out any instruction in writing or otherwise. Spousal Consent Letters The spouse of one shareholder of Q&K E-Commerce who holds 10.47% equity interest in Q&K E-Commerce signed a spousal consent letter on April 14, 2015. Under the spousal consent letter, the signing spouse unconditionally and irrevocably agreed, respectively, that she was aware of the disposal of Q&K E-Commerce shares held by the shareholder in the abovementioned exclusive option agreement, equity pledge agreement, shareholder voting proxy agreement and power of attorney. The signing spouse confirmed not having any interest in the Q&K E-Commerce shares and committed not to impose any adverse assertions upon those shares. The signing spouse further confirmed that her consent and approval are not needed for any amendment or termination of the abovementioned agreements and committed that she shall take all necessary measures needed for the performance of those agreements. Exclusive Technology Service Agreement Q&K Investment Consulting and Q&K E-Commerce entered into an exclusive technology service agreement on April 21, 2015. Pursuant to this agreement, Q&K Investment Consulting or its designated party has the exclusive right to provide Q&K E-Commerce with consulting, software and technology services. Without Q&K Investment Consulting’s prior written consent, Q&K E-Commerce shall not accept any technical support and services covered by this agreement from any third party. Q&K E-Commerce agrees to pay service fees equivalent to no less than 100% of its annual net profit. Q&K E-Commerce also agrees to pay service fees for any specific technology service and consultation service rendered by Q&K Investment Consulting at Q&K E-Commerce’s request from time to time. Q&K Investment Consulting owns the intellectual property rights arising out of the provisions of services under this agreement. Unless terminated mutually, this agreement will remain effective for twenty years. This agreement will be automatically renewed for another ten years, unless there is any written objection rendered third days prior to its expiry. Exclusive Option Agreement Q&K Investment Consulting, Q&K E-Commerce and the shareholders of Q&K E-Commerce entered into an exclusive option agreement in 2015. Pursuant to the exclusive option agreement, Q&K E-Commerce and its shareholders have irrevocably granted Q&K Investment Consulting or any third party designated by Q&K Investment Consulting an exclusive option to purchase all or part of their respective equity interests in Q&K E-Commerce. The purchase price shall be the lower of (i) the amount that the shareholders contributed to Q&K E-Commerce as registered capital for the equity interests to be purchased, or (ii) the lowest price permitted by applicable PRC law. The shareholders of Q&K E-Commerce irrevocably agree that if such price is lower than what is allowed by PRC law, the purchase price should be equal to the lowest price allowed by PRC law. Q&K E-Commerce or its shareholders will repay Q&K Investment Consulting or any third party designated by Q&K Investment Consulting the purchase price within ten business days after Q&K E-Commerce or its shareholders receives such purchase price. In addition, Q&K E-Commerce granted Q&K Investment Consulting an exclusive option to purchase, or have its designated entity or person, to purchase, at its discretion, to the extent permitted under PRC law, all or part of Q&K E-Commerce’s assets at the net book value of the transferred assets, or the lowest price permitted by applicable PRC law if the latter is higher than the relevant net book value. 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 its shareholders. Without Q&K Investment Consulting’s prior written consent, the shareholders of Q&K E-Commerce shall not, among other things, amend its articles of association, increase or decrease the registered capital, sell, dispose of or set any encumbrance on its assets, business or revenue outside the ordinary course of business, enter into any material contract, merge with any other persons or make any investments, distribute dividends, or enter into any transactions which have material adverse effects on its business. The shareholders of Q&K E-Commerce also undertake that they will not transfer, pledge, or otherwise dispose of their equity interests in Q&K E-Commerce to any third party or create or allow any encumbrance on their equity interests. This agreement will remain effective until Q&K Investment Consulting or any third party designated by Q&K Investment Consulting has acquired all equity interest of Q&K E-Commerce from its shareholders. Equity Pledge Agreement Q&K Investment Consulting, Q&K E-Commerce and the shareholders of Q&K E-Commerce entered into an equity pledge agreement on April 21, 2015. Pursuant to the equity pledge agreement, each shareholder of Q&K E-Commerce has pledged all of its equity interest in Q&K E-Commerce to Q&K Investment Consulting to guarantee the performance by such shareholder and Q&K E-Commerce of their respective obligations under the exclusive technology service agreement, shareholder voting proxy agreements, and exclusive option agreement as well as their respective liabilities arising from any breach. If Q&K E-Commerce or any of its shareholders breaches any obligations under these agreements, Q&K Investment Consulting, as pledgee, will be entitled to dispose of the pledged equity and have priority to be compensated by the proceeds from the disposal of the pledged equity. Each of the shareholders of Q&K E-Commerce agrees that before its obligations under the contractual arrangements are discharged, he or she will not dispose of the pledged equity interests, create or allow any encumbrance on the pledged equity interests, or take any action which may result in any change of the pledged equity that may have material adverse effects on the pledgee’s rights under this agreement without the prior written consent of Q&K Investment Consulting. The equity pledge agreement will remain effective until Q&K E-Commerce and its shareholders discharge all their obligations under the contractual arrangements. The Group has completed the registration of the equity pledge with the relevant office of the Administration for Industry and Commerce in accordance with PRC Property Rights Law on April 30, 2015. The Group believes that the contractual arrangements with Q&K E-Commerce 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 Group’s PRC subsidiaries and Q&K E-Commerce; ● discontinue or restrict the operations of any related-party transactions between the Group’s PRC subsidiaries and Q&K E-Commerce; ● limit the Group’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Group’s PRC subsidiaries and Q&K E-Commerce may not be able to comply; ● require the Group or the Group’s PRC subsidiaries or Q&K E-Commerce to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Group’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 Q&K E-Commerce or the right to receive their economic benefits, the Group would no longer be able to consolidate the financial results of Q&K E-Commerce. The following financial statement amounts and balances of the Q&K HK, Q&K Investment Consulting and Q&K E-Commerce (collectively “VIE entities”) and their subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The revenues, net loss and cash flows for the year of 2022 represented the amounts of Q&K HK and Q&K Investment Consulting for the period from dates of equity transfer through September 30, 2022, the amounts of Q&K E-Commerce for the year ended September 30, 2022 and the amounts of the subsidiaries of Q&K E-Commerce for the period from October 1, 2021 through the dates of deconsolidation. As of September 30, 2021 2022 RMB RMB USD ASSETS Cash and cash equivalents 10,982 62 9 Restricted cash 2,893 — — Accounts receivable 370 — — Prepaid rent and deposit 571 — — Advances to suppliers 5,323 6,131 862 Other current assets 97,978 2,572 362 Property and equipment, net 38,940 — — Intangible assets, net 539 — — Other assets 108 98 14 Total assets 157,704 8,863 1,247 LIABILITIES Accounts payable 281,458 34 5 Deferred revenue 1,125 16 2 Short-term debt 256,773 13,000 1,828 Rental instalment loans 33 — — Deposits from tenants 1,422 — — Accrued expenses and other current liabilities 875,572 67,908 9,547 Long-term debt 201,041 — — Total liabilities 1,617,424 80,958 11,382 For the years ended September 30, 2020 2021 2022 RMB RMB RMB USD Net revenues 965,093 173,921 1,635 230 Net loss (1,491,565 ) (375,470 ) (43,940 ) (6,177 ) For the years ended September 30, 2020 2021 2022 RMB RMB RMB USD Net cash provided by (used in) operating activities 72,293 (108,705 ) (16,087 ) (2,261 ) Net cash used in investing activities (99,172 ) — (217 ) (31 ) Net cash (used in) provided by financing activities (95,948 ) 98,466 2,267 319 The consolidated VIE entities and their subsidiaries contributed 80%, 17% and 0.3% and of the Group’s consolidated revenues for the years ended September 30, 2020, 2021 and 2022. As of September 30, 2021 and 2022, the consolidated VIE entities and their subsidiaries accounted for an aggregate of 42% and 9%, respectively, of the Group’s consolidated total assets, and 57% and 12%, respectively, of the Group’s consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE entities. However, the Company has provided and will continue to provide financial support to the VIE considering the business requirements of the VIE entities, as well as the Company’s own business objectives in the future. There are no assets held in the VIE entities and its subsidiaries that can be used only to settle obligations of the VIE entities and their subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE entities and their subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE entities do not have recourse to the general credit of the Group for any of the liabilities of the VIE entities. Relevant PRC laws and regulations restrict the VIE entities from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Group in the form of loans and advances or cash dividends. Please refer to Note 14 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 and intangible assets, valuation allowance of deferred tax assets, share-based compensation, fair value of the convertible note without the warrants and the warrants themselves. 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 As of September 30, 2021, restricted cash mainly represents the Group’s frozen bank accounts deposits to the bank as a form of security with respect to the Group’s debt and tenants’ repayment of rental instalment loans. As of September 30, 2022, restricted cash mainly represents the Group’s frozen bank accounts for liquidation of the VIE’s subsidiaries. The restricted cash are not available to fund the general liquidity needs of the Group. 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: Property and equipment Useful lives Furniture, fixtures and equipment 3 years Motor vehicles 4 years 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) income as the difference between the net sales proceeds and the carrying amount of the underlying asset. Intangible assets, net On July 22, 2020, the Group 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 Group also assumed liabilities associated with acquired assets. The Group accounted for the acquisition as an asset acquisition because the Group 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: Intangible assets Useful lives Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. For the years ended September 30, 2020, the Group recognized impairment losses of RMB 846,766 against certain apartments due to the continued underperformance relative to the projected operating results. For the year ended September 30, 2021, the Group recognized impairment losses of RMB 199,575 against leasehold improvements and furniture, fixtures and equipment used in apartments under capital lease and other financing arrangements. The Group expected it would not receive any cash flow from these property and equipment, as the Group terminated cooperation with the rental service company and no longer received fee income during the year (See Note 2–- Capital lease and other financing arrangement For the year ended September 30, 2022, the Group recognized impairment of RMB 70,606 and RMB 29,550 against trademark and apartment rental contracts (See Note 2 – Fair value 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 Group 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 Group for costs incurred for the renovation. The Group then makes payments to the rental service company in instalments 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 Group. The Group accounts for this arrangement with the rental service company as a capital lease. Under the same arrangement above, the Group 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. During the year ended September 30, 2021, the Group terminated cooperation with the rental service company, and the Group reclassified the capital lease payable and other financing payable to the account of “Accrued expenses and other current liabilities”. Because the underlying leasehold improvements or furniture, fixtures and equipment used in apartments did not provide future cash flows for the Group, the Group provided full impairment against these leasehold improvements or furniture, fixtures and equipment. As of September 30, 2021 and 2022, the Group had no 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 period represents the term during which termination will result in the forfeiture of deposit, which is typically 1 or 2 months’ rent. The Group determines that the lock-in period is the lease term under ASC 840. Upon termination of leases, the Group returns unused portions of any prepaid rentals to the tenant within a prescribed period of time. Deposit can only be returned for termination after lock-in period. Monthly rent is fixed throughout the lease term and there is no rent-free period or rent escalations during the period. The Group determines all lease arrangements with tenants are operating leases since the benefits and risks incidental to ownership remains with the Group. Revenue is recognized on a straight-line basis starting from the commencement date stated in the lease agreements. In April 2020, the Group started to modify arrangements with a rental service company (See Capital lease and other financing arrangement) In December 2020 through August 2021, the Group terminated the arrangements with the rental service company. As of September 30, 2021, the Group did not provide supervision services over the third-party contractor and did not receive fee income from the rental service company. Accordingly the Group ceased recognition of lease income upon termination of the arrangements. 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 5% rental discount, and tenants who prepay at least the first twelve months of lease term rental can enjoy a 10% rental discount (subject to a RMB200 limit per month). Such incentives are only applicable during the lock-in period. The Group considers the rental discounts as a lease incentive and records it as a reduction in revenue on a straight line basis over the lease term. The Group recorded RMB 12,921, RMB 5,695 and RMB nil Rental instalment loan arrangement In order to encourage tenants to make advance payments, the Group cooperates with various financial institution partners to facilitate rental instalment loans for its tenants, who apply for rental instalment loans directly with these financial institutions. The financial institutions approve or decline the rental instalment loans based on the tenants credit profile, and approval of the rental instalment 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 instalment loans. Tenants repay the loan principal in monthly instalments directly to the financial institutions which equals to the monthly rental payment. The Group pays instalment 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 instalment loan scheme, the Group has full control of the entire instalment 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 nil as of September 30, 2021 and 2022. The Group did not enter into new rental instalment loan arrangements from April 2021. Impact on cash flows For rental instalment 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 instalment 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 to six years which may be extended for an additional three or two years at the discretion of the landlords. Since all the benefits and risks incidental to ownership remains with the landlord, the Group determines that these arrangements are operating leases. The Group typically negotiates a rent-free period of one – two months per year and locks in a fixed rent for the first three years and approximately 5% annual, non-compounding increase for the rest of the lease period. As such, typically all leases with landlords contain rent holidays and fixed escalations of rental payments during the lease term. The Group determines the lease term under ASC 840 to include the years that can be early terminated by the landlords. The Group records total lease expense on a straight-line basis over the lease term and the difference between the straight-line lease expense and cash payments under the lease is recorded as deferred rent on the consolidated balance sheets. In December 2020 through August 2021, the Group terminated the arrangements with the rental service company. Accordingly the Group early terminated lease agreements with landlords. Upon termination, the deferred rent was accelerated in recognition as a reduction against rental expenses of RMB 100,962. As of September 30, 2021 and 2022, the Company had no Rental expense to the landlords recorded in consolidated statements of comprehensive losses were RMB 813,773, RMB 642,354 and RMB 539,487 for the years ended September 30, 2020, 2021 and 2022, respectively. Value-added services and others The Group 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 revenu |
Other Current Assets
Other Current Assets | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Other Current Assets [Abstract] | ||
OTHER CURRENT ASSETS | 3. OTHER CURRENT ASSETS Other current assets consist of the following: As of September 30, As of March 31, 2022 2023 Due from a service provider (1) 36,100 37,552 Deposit for share settlement (2) 21,341 20,602 Due from shareholders (3) — 13,910 Others 1,588 1,906 59,029 73,970 (1) Upon asset acquisition with Beautiful House, the Group engaged a third party service provider to provide apartment operation services to the Group. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House. To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and loans are repayable on demand. (2) Upon settle payables due to Beautiful House arising from asset acquisition, the Group made a deposit of RMB 20,602 (US$3,000) to Beautiful House, which is expected to get repaid upon share settlement. (3) During the six months ended March 31, 2023, the Company paid RMB 13,910 on behalf of certain shareholders who owned less than 5% of outstanding shares of the Company, for transfer of their ordinary shares into ADS which could be traded in the open market. The balance was repayable on demand. | 3. OTHER CURRENT ASSETS Other current assets consist of the following: As of September 30, 2021 2022 Receivable from sales of buildings under construction (1) 100,300 — Due from a service provider (2) 23,326 36,100 Deposit for share settlement (3) 19,279 21,341 Others 438 1,588 143,343 59,029 (1) During the year ended September 30, 2021, the Group sold buildings under construction (See Note 4, Property and equipment, net (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. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House (Note 8). To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and the loans are repayable on demand. (3) Upon settle payables due to Beautiful House arising from asset acquisition (Note 8), the Group paid a deposit of RMB 21,341 (US$3,000) to Beautiful House, which is expected to get repaid upon share settlement. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||
PROPERTY AND EQUIPMENT, NET | 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: As of September 30, As of March 31, 2022 2023 Cost: Vehicle 2,269 2,269 Office furniture, fixtures and equipment 922 922 3,191 3,191 Less: Accumulated depreciation (2,691 ) (2,849 ) 500 342 Depreciation expenses were RMB 474 and RMB 158 and for the six months ended March 31, 2022 and 2023, respectively. | 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: As of September 30, 2021 2022 Cost: Buildings 40,167 — Vehicle 3,043 2,269 Office furniture, fixtures and equipment 20,456 922 63,666 3,191 Less: Accumulated depreciation (24,726 ) (2,691 ) 38,940 500 During the year ended September 30, 2021, the Group sold the buildings under construction in progress through judicial sales for proceeds of RMB 100,300. The Court assisted the Group to sell the building under construction and collected the proceeds on behalf of the Group. The Court completed the allocation of the proceeds to creditors in the year ended September 30, 2022. Accordingly, the Group recorded the proceeds of RMB 100, 300 nil Upon the Group terminated cooperation with a rental service company during April 2021 through August 2021, the Group expected it would not receive any cash flow from leasehold improvements and furniture, fixtures and equipment used in apartments under capital lease and other financing arrangements (See Note 2 – Summary of Principal Accounting Policies - Capital lease and other financing arrangement). Accordingly, the Group accrued full impairment against leasehold improvements and furniture, fixtures and equipment used in apartments. Depreciation expenses were RMB187,092, RMB 20,039 and RMB 1,002 and for the years ended September 30, 2020, 2021 and 2022, respectively. Impairment loss against property and equipment were RMB 313,354, RMB 199,575 and RMB nil Upon deconsolidation of Deconsolidated VIE’s Subsidiaries, the Group deconsolidated certain property and equipment. As of September 30, 2022, the Company had net book value of RMB 500 in property and equipment. For the years ended September 30, 2020 and 2021, the Group disposed of certain property and equipment, including leasehold improvements, furniture, fixtures and equipment used in apartments, and office furniture, fixtures and equipment, at no consideration. On the disposal date, the disposed property and equipment were comprised of the following. On September 30, 2021, the Group sold buildings under construction with original cost of RMB 81,431 through judicial sale for the proceeds of RMB 100,300. For the years ended September 30, 2020, 2021 and 2022, the Group recognized net loss from disposal from property and equipment of RMB 454,224, RMB 19,448 and RMB nil For the years ended September 30, 2020 2021 2022 Cost: Buildings 620,354 45,548 — Vehicle 253,205 22,830 — Office furniture, fixtures and equipment 500 50 — 874,059 68,428 — Less: Accumulated depreciation (419,835 ) (42,012 ) — 454,224 26,416 — |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Intangible Assets, Net [Abstract] | ||
INTANGIBLE ASSETS, NET | 5. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of September 30, As of March 31, 2022 2023 Cost: Apartment rental contracts 55,967 3,001 Trademarks 16,294 — 72,261 3,001 Less: Accumulated amortization (58,786 ) (3,001 ) 13,475 — Amortization expenses were RMB 21,967 and RMB 3,001 for the six months ended March 31, 2022 and 2023, respectively. Impairment loss against intangible assets were RMB 100,156 and RMB 10,474 for the six months ended March 31, 2022 and 2023, respectively. Impairment of apartment rental contracts The Group acquired from Great Alliance Coliving Limited. and its affiliates (“Beautiful House”) certain assets, including approximately 72,000 apartment rental contracts and leasehold improvements attached to the apartments, and trademarks of Beautiful House. The Group determined the estimated fair values using Level 3 inputs after review and consideration of relevant information, which are unobservable inputs that fall within Level 3 of the fair value hierarchy. As of March 31, 2022 and March 31, 2023, the Group reviewed the fair value of the apartment rental agreements based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected rooms’ revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. As a result, the Group has determined that the majority of the inputs used to value its apartment rental agreements is unobservable inputs that fall within Level 3 of the fair value hierarchy. The revenue growth rate and the discount rate were the significant unobservable inputs used in the fair value measurement. The revenue growth rate for apartment rental agreements was 0%, and the discount rate was 11% for the six months ended March 31, 2022, both of which met the profit projection target. The carrying amount of apartment rental agreements exceeds its fair value by RMB 29,550, the Group recognized impairment against apartment rental agreements of RMB 29,550 for the six months ended March 31, 2022. The revenue growth rate for apartment rental agreements was 0%, as a result of increase of unit rental fee by 0%, and the discount rate was 11% for the six months ended March 31, 2023, which underperformed the profit projection target. The Group provided impairment of RMB 10,474 on apartment rental contracts for the six months ended March 31, 2023. Impairment of trademarks As of March 31, 2022, the Group wrote off full trademark balance because the trademark will not be used in the future consider the future business development. | 5. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of September 30, 2,021 2,022 Cost: Apartment rental contracts 112,849 55,967 Trademarks 86,900 16,294 Software 2,275 — 202,024 72,261 Less: Accumulated amortization (49,560 ) (58,786 ) 152,464 13,475 Amortization expenses were RMB 75,660, RMB 58,934 and RMB 26,397 for the years ended September 30, 2020, 2021 and 2022, respectively. Impairment loss against intangible assets were RMB 533,412, RMB nil For the years ended September 30, 2020, 2021 and 2022, the Group disposed of certain apartment rental contracts with net book value of RMB 14,756, RMB 10,725 and RMB 11,972, respectively, at no consideration. For the years ended September 30, 2020, 2021 and 2022, the Group recognized loss from disposal of intangible assets of RMB 14,756, RMB 10,725 and RMB 11,972, respectively. The following table sets forth the Group’s amortization expenses for the five years since September 30, 2022: Amortization Year ending September 30, 2023 6,002 Year ending September 30, 2024 3,734 Year ending September 30, 2025 1,588 Year ending September 30, 2026 829 Year ending September 30, 2027 and thereafter 1,322 13,475 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2022 | |
Debt [Abstract] | |
DEBT | 6. DEBT The short-term and long-term debt were as follows: As of September 30, 2021 2022 Short-term debt: Short-term bank borrowings (1) 116,376 103,552 Long-term bank borrowings, current portion (1) 219,121 — Other short-term payable (2) 223,208 6,545 558,705 110,097 Long-term debt: Long-term bank borrowings, non-current portion (1) 175,534 — Other long term payable (2) 25,507 — 201,041 — 759,746 110,097 (1) Bank borrowings Bank borrowings with MY Bank On December 17, 2020, the Group entered into a 18-month borrowing agreement with Zhejiang MY Bank (the “MY Bank”) under which the Group borrowed RMB 26,652. The borrowing is used to repay the rental instalment loans for the lessees. The interest rate is 8.5% per annum. Pursuant to the borrowing agreement, the Group is obliged to make monthly repayment of RMB 400 and interest expenses for the first six months and RMB 2,224 and interest expenses of the remaining twelve months. As of September 30, 2021, the Group had outstanding borrowings of RMB 24,652 due to MY Bank. Upon deconsolidation of Deconsolidated VIE’s Subsidiaries, the bank borrowing with MY Bank with outstanding balance of RMB 24,652 was deconsolidated. Bank borrowings with SHRB In July and November 2020, SHRB extended due date of matured borrowing for the principal of RMB 27,000 from September 2019 to January through March of 2022, and due date of borrowing for the principal of RMB 132,000 to March 2023. In December 2020, the Group borrowed two new bank borrowing from SHRB with principal of RMB 25,929 and RMB 9,000, respectively. Both loans bear interest rate of 7.5% per annum and are due in December 2022. These two loans were guaranteed by Suzhou Qingke, collateralize by Suzhou Qingke and Qingke Public Rental, pledged by the accounts receivables guarantee of Suzhou Qingke, Qingke Public Rental and Hangzhou Qingke Residential Management Co., Ltd., and pledged by 77,100,000 treasury shares. The Group used the bank borrowings to repay the outstanding bank borrowings. As of September 30, 2021, the Group had an outstanding balance of RMB 193,929, of which RMB 27,000 was subject to an interest rate of 8.75% per annum and remaining balance was subject to an interest rate of 7.5% per annum. The weighted average interest rate for borrowings drawn under such credit facility was 7.5% and 7.9% per annum for the years ended September 30, 2020 and 2021, respectively. On September 26, 2020, the Group entered into an 18-month bank credit facility with SHRB under which the Group can draw-down up to RMB108,000 by March 26, 2021 to repay the rental instalment loans on 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. In April 2021, SHRB renewed the terms under which the Group can draw-down up to RMB91,400 by September 27, 2021 and extended the loan term to September 26, 2022.As of September 30, 2021, the Group has drawn down RMB 90,400, all of which is to be repaid within one year. These loans were guaranteed by Suzhou Qingke, collateralized by Suzhou Qingke and Qingke Public Rental, and pledged by 77,100,000 treasury shares. On April 30, 2020, the Group entered into an 18-month bank loan contract with SHRB under which the Group borrowed RMB 50,000 to repay the rental instalment loans on behalf of departed tenants. The rate of the loan was 7.5% per annum. In April 2021, SHRB extended due date of borrowing for the principal of RMB 50,000 to February 2022. Q&K Investment Consulting and Q&K E-commerce provided guarantee on the loans. As of September 30, 2021, the outstanding balance of the borrowing was RMB 50,000. On May 28, 2020, the Group entered into an 18-month bank loan contract with SHRB under which the Group borrowed RMB 50,000 to repay the rental instalment loans on behalf of departed tenants. The rate of the loan was 7.5% per annum. In April 2021, SHRB extended due date of borrowing for the principal of RMB 50,000 to February 2022. Q&K Investment Consulting and Q&K E-commerce provided guarantee on the loans. As of September 30, 2021, the outstanding balance of the borrowing was RMB 50,000. In June 2022, SHRB sold the above loans to the Group to a third party. In the same time SHRB also transferred the 77,100,000 treasury shares pledged to SHRB to the third party. Upon negotiation, the Company issued these shares to the third party to settle part of the obligations. On deconsolidation of the subsidiaries of the VIE, the balance of due to third parties were fully deconsolidated. Bank borrowings with China Merchants Bank On June 13, 2017, the Group entered into a 10-year bank loan contract with China Merchants Bank under which the Group borrowed RMB17,210 to purchase buildings for administration office purposes. The loan was collateralized by the buildings purchased under this loan contract. As of September 30, 2021, the net carrying value of the collateralized buildings was RMB 33,626. The weighted average interest rate of the loan was 5.39% per annum for the years ended September 30, 2020 and 2021. As of September 30, 2021, the Group has drawn down RMB 10,326, of which RMB 1,721 is to be repaid within one year, RMB 8,605 to be repaid over one year. Upon deconsolidation of Deconsolidated VIE’s Subsidiaries, the bank borrowing of RMB 10,326 with China Merchants Bank were deconsolidated. Rental instalments with SHRB 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 instalment loans, by February 2022 with annual interest rate of 7.5%. As of September 30, 2021 and 2022, excluding the rental instalment loan facility, the Group did not draw down bank borrowings. (2) 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 3.8% and 6%. For the year ended September 30, 2021, one of the loans from a third party matured and the Group did not repay the principal when due. The Group and the borrower entered into an interest payment agreement, pursuant to which the Group paid 77,250,000 treasury shares to the borrower as interest expenses and extended the loans. Because the interest payment agreement took effective after original borrowing agreement matured, and the original borrowing agreement does not qualify as a trouble debt restructuring under ASC 470-60, such a modification of loan agreement is treated as an extinguishment of original loan agreement. The reacquisition of the loan is referred to the value of the 77,250,000 treasury shares, which was RMB 41,964 and was recorded as a debt extinguishment cost in the consolidated statement of operations. On May 25, 2022, the Group issued 8,617,124,250 class A ordinary shares to a third party, at a total consideration of RMB 392,104 to settle the outstanding principal of RMB 217,477 and interest of RMB 24,665. The Company recorded inducement expenses of RMB 149,962. |
Operating Costs
Operating Costs | 12 Months Ended |
Sep. 30, 2022 | |
Operating Costs [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, 2020 2021 2022 Rental cost 813,773 642,354 539,487 Depreciation expenses 256,056 75,332 26,543 Personnel cost 77,392 224,125 144,926 Cost for value-added services and others 56,194 7,843 47 1,203,415 949,654 711,003 |
Asset Acquisition
Asset Acquisition | 12 Months Ended |
Sep. 30, 2022 | |
Asset Acquisition [Abstract] | |
ASSET ACQUISITION | 8. ASSET ACQUISITION On July 22, 2020, the Group entered into a series of asset purchase agreements with Great Alliance Coliving Limited. and its affiliates (“Beautiful House” or the “Sellers”) to acquire assets, including approximately 72,000 apartment rental contracts with leasehold improvements attached toit, and trademarks of Beautiful House. In addition, the Group also assumed liabilities of RMB 349,665 associated with acquired assets. The consideration was comprised of cash of $29,000 (approximately RMB 205,306) and 128,589,392 shares of the Group’s Class A ordinary shares with total value of $42,673 (approximately RMB 289,733), reflecting discount for lack of marketability. The number of shares to be issued is determined based on the total share consideration amount agreed and average closing price of the Group’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. As of September 30, 2020, the Group made a cash payment of $5,800 (equivalent of RMB39,498). There were no material direct transaction costs related to the transaction. The remaining cash consideration payable of $23,200(equivalent of RMB 165,808) and share consideration of RMB289,733 were recorded in the account of “Payable for asset acquisition” and “additional paid-in capital”, respectively. The Group accounted for the acquisition as an asset acquisition because the Group did not acquire substantive process from Beautiful House. On the date of asset acquisition, the Group 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 identify 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 Group (349,665 ) 495,039 In May 2021, the Group entered into an agreement to settle the outstanding payables with the Sellers, pursuant to the agreement, the Group delivered 186,375,850 ordinary shares to settle both cash consideration payable and share consideration payable. The Sellers are entitled to trade the ordinary shares in open market. In addition, among the 186,375,850 shares delivered, 57,786,458 ordinary shares will oblige the Group to make up the shortfall if the cash collected by the Sellers are lower than $0.4014 per share. Additionally, 20,860,749 of the 57,786,458 ordinary shares are redeemable at a per share price of $0.4015 if the Sellers do not trade in open market. The 57,786,458 ordinary shares are subject to a make-whole cash-settled provision, and 20,860,749 ordinary shares of which are also subject to redemption. The Group assessed the redemption terms and assessed it is probable that the Group will redeem these ordinary shares. The 57,786,458 ordinary shares fall in the classification of a liability. As of September 30, 2021 and 2022, the Group recorded the liabilities of RMB 164,254 and RMB 165,033 in the account of “Contingent liabilities for payable for asset acquisition”. The change in the balance as of September 30, 2021 and 2022 arose from change in foreign exchange rates. |
Convertible Note, Net
Convertible Note, Net | 12 Months Ended |
Sep. 30, 2022 | |
Convertible Note, Net [Abstract] | |
CONVERTIBLE NOTE, NET | 9. CONVERTIBLE NOTE, NET The Group has executed a convertible note and warrant purchase agreement dated July 22, 2020 (the “Purchase Agreements”) with one investor which is controlled by one principal shareholder of the Group (Note 15) and one third party investor under which the investors may subscribe at par for up to $100,000 in aggregate principal amount of the Group’s four five On May 25, 2022, the Group entered into certain amendments to the conversion price of the convertible notes, which was adjusted to being the price calculated as seventy five percent 75% of the 15-Trading Day average closing price of the Company’s American Depositary Shares (the “ADS”), each representing 150 class A ordinary shares of the Company, as of May 13, 2022 (the “Conversion Price”). The holders of Notes converted all of the outstanding principal amount of convertible notes and all the accrued but unpaid interest as of such date at the Conversion Price. The Company issued 15,414,467,400 Ordinary Shares, at fair value of RMB 701,403 to settle the convertible notes and all the accrued but unpaid interest of RMB 427,679. The Group accounted for the transaction as an inducement offer and recognized inducement expenses of RMB 273,724 upon conversion. By May 13, 2022, the date on which the Company settled the convertible noted, the Group closed 22 issuances of Notes of $51,637 (approximately RMB 344,619). The maturity dates of these Notes shall be the fourth anniversary of issuance dates. Each Note is comprised of two series of notes. 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 Group 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) 120% of 30-Trading Day average closing price of the Company’s American Depositary Shares (the “ADS”), or (2) if the Group completes an ADS offering of at least $50,000 within eighteen (18) months after the issuance date of this Note, eighty percent (80)% of the issue price per ADS in such offering, such adjusted conversion price shall be effective on the day immediately succeeding the closing date of the ADS offering. The conversion price is subject to adjustment in the event of a Make Whole Fundamental Change, as defined in the Purchase Agreement. The Group 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 that: (i) the reported sales price of the ADS of the Group is no less than $22.00 per ADS, subject to adjustment in the event of fundamental change, as defined, for more than sixty (60) consecutive trading days and (ii) the average daily trading volume during such sixty (60) consecutive trading days is more than $15,000 per trading day. In addition, the Group 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. A summary of warrants activity for the years ended September 30, 2020, 2021 and 2022 was as follows. The number of ADS were retroactively adjusted to reflect the stock split of ADS effective on March 7, 2022. A summary of warrants activity for the years ended September 30, 2021 and 2021 was as follows: Number of Weighted Expiration Balance of warrants outstanding as of September 30, 2020 21,913 4.84 years Grants of Warrants on October 14, 2020 963 5 years October 14, 2025 Grants of Warrants on October 20, 2020 2,770 5 years October 20, 2025 Grants of Warrants on October 29, 2020 3,124 5 years October 29, 2025 Grants of Warrants on December 15, 2020 5,744 5 years December 15, 2025 Grants of Warrants on February 25, 2021 4,630 5 years February 25, 2026 Grants of Warrants on April 7, 2021 3,174 5 years April 7, 2026 Grants of Warrants on May 18, 2021 1,720 5 years May 18, 2026 Grants of Warrants on June 21, 2021 2,715 5 years June 21, 2026 Grants of Warrants on July 13, 2021 7,435 5 years July 13, 2026 Grants of Warrants on July 30, 2021 1,773 5 years July 30, 2026 Grants of Warrants on September 8, 2021 1,311 5 years September 8, 2026 Grants of Warrants on September 30, 2021 1,355 5 years September 30, 2026 Balance of warrants outstanding as of September 30, 2021 58,627 4.25 years Grants of Warrants on October 19, 2021 1,705 5 years October 19, 2026 Grants of Warrants on November 1, 2021 2,184 5 years November 1, 2026 Grants of Warrants on November 29, 2021 1,939 5 years November 29, 2026 Grants of Warrants on December 10, 2021 2,127 5 years December 10, 2026 Grants of Warrants on January 6, 2022 3,801 5 years January 6, 2027 Grants of Warrants on January 27, 2022 13,385 5 years January 27, 2027 Grants of Warrants on March 1, 2022 7,412 5 years March 1, 2027 Grants of Warrants on March 31, 2022 8,031 5 years March 31, 2027 Balance of warrants outstanding as of May 13, 2022 99,211 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 convertible notes did not contain beneficial conversion feature. The embedded conversion features, redemption features and acceleration features were not bifurcated from the debt hosts as they were clearly and closely related to the debt hosts. The convertible notes were classified as debt measured at amortized cost. The warrants were cashless settled and were classified as an equity because the warrants were indexed to the Group’s own stocks and classified in the shareholders’ equity in the consolidated balance sheets. The proceeds from issuance of the Notes were allocated to the relative fair values of the Notes and warrants. The Group estimated fair value of Notes were RMB 286,098, using discount cash flow model, which took into consideration the term yields ranging between 18.12% and 25.58%. The Group estimated fair value of the warrants issued at RMB 6,052, 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 Group allocated proceeds of RMB 8,596 to the warrants which was recorded as an additional paid-in capital. On May 25, 2022, the Group settled convertible notes and all the accrued but unpaid interest. In the meantime, the warrants to subscribe the ADSs were cancelled. The discounts of RMB 8,596 will be amortized as additional interest expense over the terms of Notes. For the years ended September 30, 2020, 2021 and 2022, the Group accrued accretion of interest expenses of RMB 214, RMB 1,988 and RMB 1,222, respectively. The key assumption used in estimates are as follows: July 29, September 25, October 14, October 20, October 29, December 15, February 25, April 7, May 18, Terms of warrants 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months Exercise price 57.3090 51.1070 46.5205 43.3265 38.4150 25.8380 17.7090 16.6355 10.1560 Risk free rate of interest 0.21 % 0.21 % 0.29 % 0.29 % 0.29 % 0.28 % 0.58 % 0.61 % 0.69 % Dividend yield 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Annualized volatility of underlying stock 40.0 % 39.0 % 39.0 % 39.0 % 39.0 % 40.0 % 41.0 % 40.0 % 40.0 % June 21, July 13, July 30, September 8, September 30, Terms of warrants 60 months 60 months 60 months 60 months 60 months Exercise price 10.1560 8.0360 8.0360 5.9720 5.9720 Risk free rate of interest 0.69 % 0.52 % 0.52 % 0.76 % 0.76 % Dividend yield 0.00 0.00 0.00 0.00 0.00 Annualized volatility of underlying stock 40.0 % 40.0 % 40.0 % 40.0 % 40.0 % October 11, November 1, November 11, December 10, January 6, January 27, March 1, March 31, Terms of warrants 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months Exercise price 4.5744 4.2757 4.0013 3.5739 3.2626 2.8391 2.5636 2.3658 Risk free rate of interest 1.17 % 1.24 % 1.24 % 1.55 % 1.55 % 1.55 % 1.96 % 1.96 % Dividend yield 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Annualized volatility of underlying stock 40.9 % 40.8 % 40.8 % 41.5 % 41.5 % 41.5 % 42.2 % 42.2 % |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of September 30, As of March 31, 2022 2023 Tenant deposits 5,184 21,432 Other tax payable 63,619 75,600 Interest payable 1,680 2,120 Accrued payroll and welfare 3,999 1,538 Others 7,167 3,180 81,649 103,870 | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of September 30, 2021 2022 Due to a rental service company (1) 603,884 — Tenant deposits 102,355 5,184 Payable to a constructor for leasehold improvements (2) 62,498 — Other tax payable 91,970 63,619 Interest payable 106,439 1,680 Accrued utilities 25,503 — Operation service payable 35,514 — Accrued payroll and welfare 4,471 3,999 Others 16,727 7,167 1,049,361 81,649 (1) As of September 30, 2021, the balance of due to a rental service company primarily represented a) 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, and b) Capital lease payable and other financing payables due to the rental service company. The Group 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 Group for costs incurred for the renovation. The Group then makes payments to the rental service company in instalments 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 Group. The Group accounts for this arrangement with the rental service company as a capital lease. The Group terminated cooperation with the rental service company, and the Group reclassified the capital lease payable and other financing payable to the account of “Due to a rental service company”. During the year ended September 30, 2022, the Company deconsolidated subsidiaries of the VIE. As of September 30, 2022, the Company had no balance of due to a rental service company. (2) During the year ended September 30, 2022, the constructor claimed debts with the Court (Note 3), which allocated the proceeds to the constructor. As of September 30, 2022, the Company had no outstanding balance due to the constructor. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
SHARE-BASED COMPENSATION | 9. SHARE BASED COMPENSATION The Group utilized Yijia Inc., a company controlled by the Founder as a vehicle to hold shares that will be used to provide incentives and rewards to employees and executives who contribute to the success of the Group’s operations. According to the Group’s board resolutions, in July 2017 and March 2018, 86 million shares were reserved to Yijia Inc. Yijia Inc. has no activities other than administrating the incentive program and does not have any employees. On behalf of the Group and subject to approvals from the board or directors, the Founder has the authority to select eligible participants to whom equity awards will be granted; determine the number of shares covered; and establish the terms, conditions and provision of such awards. The board resolutions allow the grantees to hold options to purchase from the Yijia Inc. the equity shares of the Group. As of June 24, 2022, Yijia Inc. held 75.2 million Class B ordinary shares. On June 24, 2022, Yijia Inc. transferred all reserved ordinary shares to Golden Stream Limited, a company controlled by Mr. Qu Chengcai, the Chief Executive Officer of the Group. Upon transfer, the Class B ordinary shares previously held by Yijia Inc. were automatically converted to Class A ordinary shares pursuant to the Company’s third amended and restated memorandum and articles of association. Since then, Golden Stream Limited became a vehicle to hold shares that will be used to provide incentives and rewards to employees and executives who contribute to the success of the Group’s operations. The board resolutions allow the grantees to hold options to purchase from the Golden Stream Limited the equity shares of the Group. All the share information disclosed under Stock Option A and Stock Option B in this section refers to the shares of the Group the grantees are entitled through Yijia Inc. shares before June 24, 2022 and through Golden Stream Limited after June 24, 2022. The related expenses are reflected in the Group’s consolidated financial statements as share-based compensation expenses with an offset to additional paid-in capital. Given the shares owned by Yijia Inc./ Golden Stream Limited for the purpose of the incentive program are existing and outstanding shares of the Group, the options do not have any dilution effect on the loss per share (see Note 11). Stock Option A On August 31, 2014, April 21, 2016, October 17, 2016 and October 18, 2016, the Group granted an aggregate number of 26.86 million share options to certain management, employees and non-employees of the Group. Under the plan, the exercise price was US$0.31 (RMB2.00) per share and vests 50% on the first and second anniversary after the IPO date. All grantees were restricted from transferring more than 25% of their total exercised ordinary shares each year after the exercise date. Given the vesting was contingent on the IPO and vested on the first and second anniversary after the IPO date, no share-based compensation expense is recognized until the date of IPO. For the year ended September 30, 2021, no share options were vested or exercised. As of September 30, 2022 and March 31, 2023, the number of outstanding options is 10,250,000 and 10,250,000, respectively, which was equal to the number of option expected to be vested. The remaining Stock Options A are exercisable into 10,250,000 Class B ordinary shares. Because the exercise price is out of money, the weighted average intrinsic value of the outstanding options and the options expected to vest was RMB nil Stock Option B On July 31, 2017, the Group granted 43.14 million share options to management and employees of the Group. The options vested immediately upon the grant date and the exercise price were US$0.31 (RMB2.00) per share. All grantees were restricted from transferring its exercised ordinary shares during certain periods subsequent to the IPO date (the “lock-up period”). If the grantee resigned from the Group before the IPO or during the lock-up period, the Group has the right to repurchase the share options or ordinary shares at the exercise price. The Group believes that the repurchase feature is effectively to require the employee to remain throughout the requisite period in order to receive any economic benefit from the award. As such, the repurchase feature functions as a vesting condition that is contingent on the IPO, no share-based compensation expense is recognized until the date of IPO. As of September 30, 2022 and March 31, 2022, the Group had 23,850,000 and 23,850,000 share options outstanding, vested and exercisable. The remaining Stock Options B are exercisable into 23,850,000 Class A ordinary shares. Because the exercise price is out of money, the weighted average intrinsic value of these share options were RMB nil Binomial options pricing model was applied in determining the estimated fair value of the options granted. The model requires the input of highly subjective assumptions including the estimated expected stock price volatility and, the exercise multiple for which employees are likely to exercise share options. The estimated fair value of the ordinary shares, at the option grants, was determined with assistance from an independent third party valuation firm. The Group’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented: April 2016 October 2016 July 2017 Risk-free rate of return 3.18 % 3.18 % 3.21 % Contractual life of option 10 years 10 years 8.4 years Estimated volatility rate 37 % 37 % 35 % Expected dividend yield 0 % 0 % 0 % Fair value of underlying ordinary shares US$ 0.03 US$ 0.04 US$ 0.05 2019 Share Incentive Plan The 2019 Share Incentive Plan became effective immediately upon the completion of our initial public offering. The maximum number of shares that may be issued under the 2019 Plan is 10% of the total outstanding shares as of the date of the consummation of our initial public offering. In June 2022, the Group issued 72 million stock options with nil In June 2022, the Group issued 50.36 million stock options with nil For the six months ended March 31, 2023, no option activities were incurred. As of March 31, 2023, 37,690,027 options were vested and exercisable. The Group recognized the compensation cost for the stock options on a straight line basis over the requisite service periods. For the six months ended March 31, 2022 and 2023, the Group recorded compensation expenses of RMB 399 and RMB 2,307 in connection with the above stock options. As of September 30, 2022, the Group had unrecognized compensation expenses for stock options of RMB 69. For the six months ended March 31, 2022 and 2023, the total share-based compensation expenses were comprised of the following: For the Six Months Ended 2022 2023 Selling and marketing expenses 2 12 General and administrative expenses 4 2,273 Research and development expenses 393 22 399 2,307 | 11. SHARE BASED COMPENSATION The Group utilized Yijia Inc., a company controlled by the Founder as a vehicle to hold shares that will be used to provide incentives and rewards to employees and executives who contribute to the success of the Group’s operations. According to the Group’s board resolutions, in July 2017 and March 2018, 86 million shares were reserved to Yijia Inc. Yijia Inc. has no activities other than administrating the incentive program and does not have any employees. On behalf of the Group and subject to approvals from the board or directors, the Founder has the authority to select eligible participants to whom equity awards will be granted; determine the number of shares covered; and establish the terms, conditions and provision of such awards. The board resolutions allow the grantees to hold options to purchase from the Yijia Inc. the equity shares of the Group. As of June 24, 2022, Yijia Inc. held 75.2 million Class B ordinary shares. On June 24, 2022, Yijia Inc. transferred all reserved ordinary shares to Golden Stream Limited, a company controlled by Mr. Qu Chengcai, the Chief Executive Officer of the Group. Upon transfer, the Class B ordinary shares previously held by Yijia Inc. were automatically converted to Class A ordinary shares pursuant to the Company’s third amended and restated memorandum and articles of association. Since then, Golden Stream Limited became a vehicle to hold shares that will be used to provide incentives and rewards to employees and executives who contribute to the success of the Group’s operations. The board resolutions allow the grantees to hold options to purchase from the Golden Stream Limited the equity shares of the Group. All the share information disclosed under Stock Option A and Stock Option B in this section refers to the shares of the Group the grantees are entitled through Yijia Inc. shares before June 24, 2022 and through Golden Stream Limited after June 24, 2022. The related expenses are reflected in the Group’s consolidated financial statements as share-based compensation expenses with an offset to additional paid-in capital. Given the shares owned by Yijia Inc./ Golden Stream Limited for the purpose of the incentive program are existing and outstanding shares of the Group, the options do not have any dilution effect on the loss per share (see Note 12). Stock Option A On August 31, 2014, April 21, 2016, October 17, 2016 and October 18, 2016, the Group granted an aggregate number of 26.86 million share options to certain management, employees and non-employees of the Group. Under the plan, the exercise price was US$0.31 (RMB2.00) per share and vests 50% on the first and second anniversary after the IPO date. All grantees were restricted from transferring more than 25% of their total exercised ordinary shares each year after the exercise date. Given the vesting was contingent on the IPO and vested on the first and second anniversary after the IPO date, no share-based compensation expense is recognized until the date of IPO. For the year ended September 30, 2021, no share options were vested or exercised. As of September 30, 2021 and 2022, the number of outstanding options is 10,250,000 and 10,250,000, respectively, which was equal to the number of option expected to be vested. The remaining Stock Options A are exercisable into 10,250,000 Class B ordinary shares. Because the exercise price is out of money, the weighted average intrinsic value of the outstanding options and the options expected to vest was RMB nil. Stock Option B On July 31, 2017, the Group granted 43.14 million share options to management and employees of the Group. The options vested immediately upon the grant date and the exercise price were US$0.31 (RMB2.00) per share. All grantees were restricted from transferring its exercised ordinary shares during certain periods subsequent to the IPO date (the “lock-up period”). If the grantee resigned from the Group before the IPO or during the lock-up period, the Group has the right to repurchase the share options or ordinary shares at the exercise price. The Group believes that the repurchase feature is effectively to require the employee to remain throughout the requisite period in order to receive any economic benefit from the award. As such, the repurchase feature functions as a vesting condition that is contingent on the IPO, no share-based compensation expense is recognized until the date of IPO. As of September 30, 2021 and 2022, the Group had 23,950,000 and 23,850,000 share options outstanding, vested and exercisable. The remaining Stock Options B are exercisable into 23,850,000 Class A ordinary shares. Because the exercise price is out of money, the weighted average intrinsic value of these share options were RMB nil Binomial options pricing model was applied in determining the estimated fair value of the options granted. The model requires the input of highly subjective assumptions including the estimated expected stock price volatility and, the exercise multiple for which employees are likely to exercise share options. The estimated fair value of the ordinary shares, at the option grants, was determined with assistance from an independent third party valuation firm. The Group’s management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented: April 2016 October 2016 July 2017 Risk-free rate of return 3.18 % 3.18 % 3.21 % Contractual life of option 10 years 10 years 8.4 years Estimated volatility rate 37 % 37 % 35 % Expected dividend yield 0 % 0 % 0 % Fair value of underlying ordinary shares US$ 0.03 US$ 0.04 US$ 0.05 2019 Share Incentive Plan The 2019 Share Incentive Plan became effective immediately upon the completion of our initial public offering. The maximum number of shares that may be issued under the 2019 Plan is 10% of the total outstanding shares as of the date of the consummation of our initial public offering. In June 2022, the Group issued 72 million stock options with nil In June 2022, the Group issued 50.36 million stock options with nil A summary of option activity during the year ended September 30, 2022 is presented below: Number of Exercise Remaining Outstanding, as of September 30, 2021 34,200,000 2 4.96 Granted 122,360,108 — 10.00 Exercised (115,180,054 ) — 10.00 Forfeited (100,000 ) 2 4.83 Outstanding, as of September 30, 2022 41,280,054 2 5.44 Vested and exercisable as of September 30, 2022 37,690,027 2 4.51 Vested or expected to vest as of September 30, 2022 41,280,054 2 5.44 The Group recognized the compensation cost for the stock options on a straight line basis over the requisite service periods. For the years ended September 30, 2020, 2021 and 2022, the Group recorded compensation expenses of RMB 16,045, RMB 1,236 and RMB 9,771 in connection with the above stock options. As of September 30, 2022, the Group had unrecognized compensation expenses for stock options of RMB169. Restricted shares units Under 2019 Share Incentive Plan, in March 2021, the Group also issued 25,000,000 restricted share units (“RSU”) to a consulting company for the service provided. All of the RSU were vested immediately upon grant. The Group recorded RSU at the measurement date fair value per share of US$0.09 by reference to the share price in the open market on grant date. For the years ended September 30, 2020, 2021 and 2022, the Group recorded compensation expenses of RMB nil nil As of September 30, 2022, the Group had no For the years ended September 30, 2020, 2021 and 2022, the total share-based compensation expenses were comprised of the following: For the years ended September 30, 2020 2021 2022 Selling and marketing expenses 83 7 12 General and administrative expenses 15,596 15,991 9,737 Research and development expenses 366 (192 ) 22 16,045 15,806 9,771 |
Loss Per Share
Loss Per Share | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Loss Per Share [Abstract] | ||
LOSS PER SHARE | 11. LOSS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the periods indicated: For the Six Months Ended 2022 2023 Net loss (243,224 ) (43,325 ) Net loss per share—Basic and diluted (0.14 ) (0.00 ) Weighted average number of ordinary shares used in computing net loss per share—Basic and diluted 1,728,612,425 27,715,937,039 For the six months ended March 31, 2022 and 2023, weighted average ordinary shares included nil nil For the six months ended March 31, 2022 and 2023, potential ordinary shares from assumed conversion of convertible notes into 364,641,420 and nil nil | 12. LOSS 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, 2020 2021 2022 Numerator: Net (loss) income attributable to FLJ Group Limited’s ordinary shareholders (1,533,592 ) (569,174 ) 820,023 Denominator: Weighted average ordinary shares outstanding—basic and diluted 1,351,127,462 1,460,692,909 10,258,424,457 Net loss per share—basic and diluted (1.14 ) (0.39 ) 0.08 For the years ended September 30, 2020, 2021 and 2022, weighted average ordinary shares included nil nil nil For the years ended September 30, 2020, 2021 and 2022, potential ordinary shares from assumed conversion of 2,789,720, 7,452,445 and 0 convertible notes as well as 41,750,000, 34,200,000 and 37,690,027 options have not been reflected in the calculation of diluted net loss per share as their inclusion would have been anti-dilutive. |
Income Taxes
Income Taxes | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Income Taxes [Abstract] | ||
INCOME TAXES | 12. INCOME TAXES The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the six months ended March 31, 2022 and 2023, the Company had no The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. The Company will classify interest and penalties related to income tax matters, if any, in income tax expense. For the six months ended March 31, 2022 and 2023, the Company had a current tax benefit of RMB 3 and RMB nil Uncertain tax positions The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. The Company is subject to income taxes in the PRC. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no no | 13. INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Company, FLJ 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 Group, QK365.com Inc. incorporated in BVI is not subject to tax on income or capital gain. Hong Kong QingKe (China) Limited and Fenglinju and are 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 of 21%. In the year ended September 30, 2022, the US company filed a withdrawal that it was no longer required to file documents or tax returns to State or Federal since it was not generating profit as a legal entity thereafter. 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 benefits is comprised of the following: For the years ended September 30, 2020 2021 2022 Current tax income 13 31 21 Deferred tax expenses — — — 13 31 21 A reconciliation between the effective income tax rate and the PRC statutory income tax rate are as follows: For the years ended September 30, 2020 2021 2022 PRC statutory tax rate 25 % 25.0 % 25.0 % Effect of different tax rates of group entities operating in other jurisdictions and preferential tax rates of group entities 0.5 % (5.0 )% 14.8 % Effect of other expenses that are not deductible in determining taxable profit — (0.9 )% 0.3 % Effect of gain from deconsolidation — — (52.9 )% Effect of share-based compensation (0.3 )% (0.7 )% 0.3 % Effect of loss on disposal of long-term assets (7.6 )% (2.0 )% 0.4 % Effect of change in valuation allowance (17.6 )% (16.4 )% 12.1 % (0.0 )% (0.0 )% (0.0 )% The principal components of the Group’s deferred income tax assets as of September 30, 2021 and 2022 are as follows: As of September 30, 2021 2022 Deferred tax assets: Net losses carry forwards 215,193 109,940 Impairment loss on long-term assets 313,668 338,707 Allowance of doubtful accounts 37,668 39,136 Other accrued expenses 22,746 22,746 Advertising expenses 12,592 12,592 Valuation allowance (601,867 ) (523,121 ) — — Movement of the valuation allowance is as follows: Balance as of September 30, 2019 338,964 Addition 280,958 Write off — Balance as of September 30, 2020 619,922 Addition 94,809 Write off (112,864 ) Balance as of September 30, 2021 601,867 Addition 99,230 Write off (177,976 ) Balance as of September 30, 2022 523,121 The write down of the valuation allowance is related to a reduction of the deferred tax asset for net operating losses from to the realizable amount based on prior tax filings and deconsolidation entities. 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, 2022, the Group had tax loss carryforwards of RMB 439,563, of which nil 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 2018 through 2022 on non-transfer pricing matters, and from 2012 through 2022 on transfer pricing matters. 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 Group 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, 2021 and 2022. 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. For the year ended September 30, 2022, the gains from deconsolidation of VIE’s subsidiaries were recorded by Company and was not allocated to the Group’s PRC subsidiaries and VIE. The Group’s PRC subsidiaries and VIE reported accumulated deficits that are not available for distribution as of September 30, 2021 and 2022. |
Statutory Reserves and Net Rest
Statutory Reserves and Net Restricted Assets | 12 Months Ended |
Sep. 30, 2022 | |
Statutory Reserves and Net Restricted Assets [Abstract] | |
STATUTORY RESERVES AND NET RESTRICTED ASSETS | 14. STATUTORY RESERVES AND NET RESTRICTED ASSETS The Group’s ability to pay dividends is primarily dependent on the Group 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 Group’s subsidiaries. Under PRC law, the Group’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 RMB 1,754,615 and RMB 10,000 as of September 30, 2021 and 2022, respectively. |
Related Party Transactions and
Related Party Transactions and Balances | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Related Party Transactions and Balances [Abstract] | ||
RELATED PARTY TRANSACTIONS AND BALANCES | 13. RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. The following entities are considered to be related parties to the Group. The related parties mainly act as service providers and service recipients to the Group. The Group is not obligated to provide any type of financial support to these related parties. Related Party Relationship with the Group Wangxiancai Limited* An entity controlled by the legal representative and executive director of one of the subsidiaries Key Space (S) Pte Ltd (“Key Space”) An entity controlled by certain shareholders of the Group * Wangxiancai Limited was no longer a related party of the Company since June 30, 2022 when the Company disposed of the Deconsolidated VIE’s Subsidiaries. The Group entered into the following transactions with its related parties: As stated in Note 1, on October 26, 2021 and December 17, 2021, the Group transferred the equity interest in the Q&K Investment Consulting and Q&K HK, respectively, to Wangxiancai Limited for nominal consideration. For the six months ended March 31, 2022, the Group issued convertible notes in exchange for cash of $2,813 (RMB 17,832) to Key Space. Among the convertible notes issued in the six months ended March 31, 2022, $835 and $1,978 are subject to interest rate of 15% per annum and 17% per annum, respectively. For the six months ended March 31, 2022, the Group accrued interest expenses of RMB 26,870 on the convertible notes. As of September 30, 2022 and March 31, 2022, amounts due to related parties were RMB 4,831 and RMB 5,394, respectively. The balance due to related parties represented borrowings from the related parties which were due within 12 months from borrowing. Details are as follows: As of September 30, As of March 31, 2022 2023 Key Space 4,065 4,065 Others 766 1,329 4,831 5,394 | 15. RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. The following entities are considered to be related parties to the Group. The related parties mainly act as service providers and service recipients to the Group. The Group is not obligated to provide any type of financial support to these related parties. Related Party Relationship with the Group Shanghai Laiguan Property Management Co., Ltd. (“Laiguan”) (i) An entity controlled by certain shareholders of the Group Shanghai Qingji Property Management Co., Ltd. (“Qingji”) (i) An entity controlled by certain shareholders of the Group Wangxiancai Limited An entity controlled by the legal representative and executive director of one of the subsidiaries Key Space (S) Pte Ltd (“Key Space”) An entity controlled by certain shareholders of the Group Mr. Qu Chengcai Chief Executive Officer Mr. Sun Zhichen Chief Financial Officer (i) Laiguan and Qingji ceased to be a related party of the Group in January 2021. The Group entered into the following transactions with its related parties: For the years ended September 30, 2020, 2021 and 2022, services provided by the related parties were as follows : For the years ended September 30, 2020 2021 2022 Labor outsourcing service expense to Laiguan 25,059 — — Labor outsourcing service expense to Qingji. 22,405 — — 47,464 — — As stated in Note 1, on October 26, 2021 and December 17, 2021, the Group transferred the equity interest in the Q&K Investment Consulting and Q&K HK, respectively, to Wangxiancai Limited for nominal consideration. As stated in Note 9, for the years ended September 30, 2020, 2021 and 2022, the Group issued convertible notes in exchange for cash of $24,018 (RMB 163,565), $17,574 (RMB 113,236) and $2,813 (RMB 20,007), respectively, to Key Space. Among the convertible notes issued in the year ended September 30, 2020, $7,133 and $16,885 are subject to interest rate of 15% per annum and 17% per annum, respectively. Among the convertible notes issued in the year ended September 30, 2021, $5,220 and $12,354 are subject to interest rate of 15% per annum and 17% per annum, respectively. Among the convertible notes issued in the year ended September 30, 2022, $835 and $1,978 are subject to interest rate of 15% per annum and 17% per annum, respectively. For the year ended September 30, 2020, 2021 and 2022, the Group accrued interest expenses of RMB 4,365, RMB 49,512 and RMB 13,094 on the convertible notes. On May 25, 2022, the Company issued ordinary shares to settle outstanding principal and unpaid interest. As stated in Note 11, the Group issued 72 million and 43.18 million stock options to Mr. Qu and Mr. Sun, respectively. (See Note 11-Share based compensation As of September 30, 2021 and 2022, amounts due from related parties were RMB 201 and RMB nil, respectively, and details are as follows: As of September 30, 2021 2022 Others 201 — 201 — As of September 30, 2021 and 2022, amounts due to related parties were RMB nil and RMB 4,831, respectively. The balance due to related parties represented borrowings from the related parties which were due within 12 months from borrowing. Details are as follows: As of September 30, 2021 2022 Key Space — 4,065 Others — 766 — 4,831 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Commitments and Contingencies [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES (a) Purchase Commitments As of March 31, 2023, the Group’s did not have commitments related to leasehold improvements and installation of equipment. (b) Contingencies The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. | 16. COMMITMENTS AND CONTINGENCIES (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 operating lease agreements at September 30, 2022 were as follows: For the years ending September 30, 2023 339,513 2024 211,216 2025 81,947 2026 34,447 2027 and thereafter 37,905 Total 705,028 (b) Purchase Commitments As of September 30, 2022, the Group’s did not have commitments related to leasehold improvements and installation of equipment. (c) Contingencies The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS 2022 Share Incentive Plan On November 18, 2022, the board of directors has approved and adopted a new share incentive plan (the “2022 Plan”). The maximum number of shares available for issuance under the 2022 Plan is 2,500,000,000 Class B ordinary shares of the Company (the “Shares”). In respect of matters requiring the votes of shareholders, holders of Class A ordinary shares are entitled to one vote per share, while holders of Class B ordinary shares are entitled to ten votes per share based on our dual class share structure. Each Class B ordinary share is convertible into one (1) Class A ordinary share at any time by the holder thereof, while Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Upon any transfer of Class B ordinary shares by a holder thereof to any person or entity which is not an affiliate of such holder, such Class B ordinary shares shall be automatically and immediately converted into the equal number of Class A ordinary shares. The board of directors has also approved the issuance of the Shares to an ESOP Platform, which is holding these Shares (representing 8.8% of the total outstanding share capital and 49.1% of the voting power of the Company) and will act upon the instructions from a senior management committee of the Company determined on a unanimous basis in relation to the voting and, prior to the vesting of the Shares to the relevant grantee of the share-based awards under the 2022 Plan, the disposition of the Shares. The Shares held by the ESOP Platform are reserved for share-based awards that the Company may grant in the future under the 2022 Plan. As of the date of this report, 2,500,000,000 Class B ordinary shares were reserved to 2022 Plan and no Class B ordinary shares have been issued under the 2022 Plan. Commitment letter for net settle outstanding receivables As of September 30, 2022, the Company had a balance of due from a service provider of RMB 36,100 and deposits of RMB 21,341 (Note 3). As one of the shareholders of the Seller of Beautiful House controls the service provider, both balances were collectible from the shareholder and one of its subsidiaries (“Shareholders”), to which the Company was obliged to make contingent liabilities aggregating RMB 119,186. On January 10, 2023, the Shareholders provided a commitment letter to the Company, pursuant to which the Shareholders agreed to net settle the outstanding receivable upon the Company repays the contingent liabilities. |
Events (Unaudited) Occurred Aft
Events (Unaudited) Occurred After the Report Date | 12 Months Ended |
Sep. 30, 2022 | |
Events Unaudited Occurred After The Report Date Abstract | |
EVENTS (UNAUDITED) OCCURRED AFTER THE REPORT DATE | 18. EVENTS (UNAUDITED) OCCURRED AFTER THE REPORT DATE On October 31, 2023, the Company entered into an equity transfer agreement to sell all of our equity interest in Q&K AI to Wangxiancai Limited for nominal consideration (the “Disposal”). Q&K AI holds substantially all of the equity interest of our subsidiaries in the PRC, through which the Company carried out long-term rental apartment rental business (the “Disposed Business”). The Disposed Business contributed substantially all revenue and held substantially all of the Company’s assets. Upon the consummation of the Disposal on October 31, 2023, the Company became a shell company as defined in Rule 12b-2 under the Exchange Act. On November 22, 2023, the Company entered into an equity acquisition agreement with Alpha Mind Technology Limited (“Alpha Mind”), an insurance agency and insurance technology business in the PRC, and Alpha Mind’s shareholders to acquire all of the issued and outstanding shares in Alpha Mind for an aggregate purchase price of US$180,000,000 or RMB equivalent (the “Acquisition”). The purchase price is payable in the form of promissory note (collectively, the “Notes”). The Notes have a maturity of 90 days from the closing date, an interest rate at an annual rate to 3% per annum and will be secured by all of the issued and outstanding equity of the Alpha Mind and all of the assets of the Alpha Mind, including its consolidated entities. The Acquisition was consummated on December 28, 2023. Upon consummation of the Acquisition, Alpha Mind became the Company’s wholly-owned subsidiary and the Company assumed and began conducting the principal business of Alpha Mind. As a result of the consummation of the Acquisition, the Company ceased to be a shell company. The following unaudited pro forma combined balance sheet as of September 30, 2022 illustrated the estimated effects of the Disposal and Acquisition. The balances are expressed in thousand US dollar. Unaudited Pro Forma Combined Balance Sheet As of September 30, 2022 Pro Forma Other Company Alpha Mind Adjustments Adjustments Pro Forma USD’000 USD’000 USD’000 USD’000 ASSETS Current Assets Cash and cash equivalents $ 390 $ 342 $ - $ (311 ) $ 421 Restricted Cash 15 - - (15 ) - Accounts receivable, net 106 2,893 - (106 ) 2,893 Prepayments 1,195 1,412 - (195 ) 2,412 Amount due from related parties - 21 - - 21 Short-term Investment - 273 - - 273 Other Current Assets 8,298 132 - (8,298 ) 132 Current assets of discontinued operations - - - 8,925 8,925 Total Current Assets 10,004 5,073 - - 15,077 Non-current Assets Restricted Cash- non-current 1,464 718 - (1,464 ) 718 Property and equipment, net 70 69 - (70 ) 69 Intangible assets, net 1,894 - - (1,894 ) - Deferred tax assets - 25 - - 25 Goodwill - - 177,635 - 177,635 Long-term assets of discontinued operations - - 3,428 3,428 Total assets $ 13,432 $ 5,885 $ 177,635 $ - $ 196,952 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Accounts payable $ 17,244 $ 2,497 $ - $ (17,244 ) $ 2,497 Advance from customer 18,265 5 - (18,265 ) 5 Short-term debt 15,477 - - (14,557 ) 920 Rental instalment loans 2,215 - - (2,215 ) - Amount due to related parties 679 17 - (107 ) 589 Deposits from tenants 5,404 - - (5,404 ) - Contingent liabilities for payable for asset acquisition 23,200 - - - 23,200 Accrued expenses and other current liabilities 11,480 1,001 - (10,994 ) 1,487 Notes payable - - 180,000 - 180,000 Current liabilities of discontinued operations - - - 68,786 68,786 Total Current Liabilities 93,964 3,520 180,000 - 277,484 Total Liabilities 93,964 3,520 180,000 - 277,484 Commitments and Contingencies SHAREHOLDERS’ EQUITY Class A Ordinary shares 243 - - 243 Additional paid-in capital 415,355 8,649 (8,649 ) 415,355 Stock subscription receivable - - - - Accumulated deficit (500,270 ) (5,636 ) 5,636 (500,270 ) Accumulated other comprehensive income (loss) 4,140 (648 ) 648 4,140 Total Shareholders’ Deficit (80,532 ) 2,365 (2,365 ) - (80,532 ) Total Liabilities, Mezzanine Equity and Shareholders’ Deficit $ 13,432 5,885 177,635 - 196,952 (a) Pro Forma Adjustments for Acquisitions Reflects the preliminary purchase price allocation recorded, and the elimination of the acquired companies’ net assets balances in accordance with the acquisition method of accounting. (b) Other Adjustments Reflects the reclassification of assets and liabilities of Q&K AI and its subsidiaries which was dispose of in October 2023. On October 31, 2023, the Company closed the disposal of the WFOE and the WFOE’s subsidiaries, and classified the as disposal of WFOE and its subsidiaries as discontinue operations. |
Short-Term Debt
Short-Term Debt | 6 Months Ended |
Mar. 31, 2023 | |
Short-Term Debt [Abstract] | |
SHORT-TERM DEBT | 6. SHORT-TERM DEBT The short-term debts were as follows: As of September 30, As of March 31, 2022 2023 Short-term bank borrowings 103,552 103,552 Other short-term payable (1) 6,545 32,072 110,097 135,624 (1) During the six months ended March 31, 2023, the Company entered into loan agreements with certain third parties to borrow an aggregation of RMB 25,527 (equivalent of US$3,750). The loans bore an interest rate of 3.85% per annum and payable in twelve months. |
Operating Lease
Operating Lease | 6 Months Ended |
Mar. 31, 2023 | |
Operating Lease [Abstract] | |
OPERATING LEASE | 7. OPERATING LEASE The Group leases apartments from landlords usually for a period of five to six years which may be extended for an additional three or two years at the discretion of the landlords. Since all the benefits and risks incidental to ownership remains with the landlord, the Group determines that these arrangements are operating leases. The Group typically negotiates a rent-free period of one – two months per year and locks in a fixed rent for the first three years and approximately 5% annual, non-compounding increase for the rest of the lease period. As such, typically all leases with landlords contain rent holidays and fixed escalations of rental payments during the lease term. The Group considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term. The Group determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Group uses the rate implicit in the lease to discount lease payments to present value; however, most of the leases do not provide a readily determinable implicit rate. Therefore, the Group discount lease payments based on an estimate of the incremental borrowing rate. For operating leases that include rent holidays and rent escalation clauses, the Group recognizes lease expense on a straight-line basis over the lease term from the date it takes possession of the leased property. The Group records the straight-line lease expense and any contingent rent, if applicable, in general and administrative expenses on the consolidated statements of income and comprehensive income. The apartment leases also require the Group to pay real estate taxes, common area maintenance costs and other occupancy costs which are included in the general and administrative expenses on the condensed consolidated statements of income and comprehensive income. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. For short-term leases, the Group records operating lease expense in its consolidated statements of income and comprehensive income on a straight-line basis over the lease term and record variable lease payments as incurred. The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets. As of September 30, As of March 31, 2022 2023 Right of use assets — 417,556 Operating lease liabilities, current — 228,655 Operating lease liabilities, noncurrent — 188,901 Total operating lease liabilities — 417,556 Other information about the Company’s leases is as follows: For the Six Months Ended 2022 2023 Weighted average remaining lease term (years) — 2.36 Weighted average discount rate — 4.47 % Operating lease expenses were RMB 300,668 and RMB 172,046, respectively, for the six months ended March 31, 2022 and 2023, respectively. The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2023: March 31, 2023 For the six months ending September 30, 2023 136,507 For the year ending September 30, 2024 175,537 For the year ending September 30, 2025 72,950 For the year ending September 30, 2026 26,765 For the year ending September 30, 2027 14,500 For the year ending September 30, 2028 and thereafter 17,968 Total lease payments 444,227 Less: Imputed interest (26,671 ) Present value of lease liabilities 417,556 |
Equity
Equity | 6 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
EQUITY | 10. EQUITY Class B Ordinary Shares On November 18, 2022, the board of directors has approved and adopted a new share incentive plan (the “2022 Plan”). The maximum number of shares available for issuance under the 2022 Plan is 2,500,000,000 Class B ordinary shares of the Company (the “Shares”). In respect of matters requiring the votes of shareholders, holders of Class A ordinary shares are entitled to one vote per share, while holders of Class B ordinary shares are entitled to ten votes per share based on our dual class share structure. Each Class B ordinary share is convertible into one (1) Class A ordinary share at any time by the holder thereof, while Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. Upon any transfer of Class B ordinary shares by a holder thereof to any person or entity which is not an affiliate of such holder, such Class B ordinary shares shall be automatically and immediately converted into the equal number of Class A ordinary shares. The board of directors has also approved the issuance of the Shares to an ESOP Platform, which is holding these Shares (representing 8.8% of the total outstanding share capital and 49.1% of the voting power of the Company) and will act upon the instructions from a senior management committee of the Company determined on a unanimous basis in relation to the voting and, prior to the vesting of the Shares to the relevant grantee of the share-based awards under the 2022 Plan, the disposition of the Shares. The Shares held by the ESOP Platform are reserved for share-based awards that the Company may grant in the future under the 2022 Plan. As of the date of this report, 2,500,000,000 Class B ordinary shares were reserved to 2022 Plan and no Class B ordinary shares have been issued under the 2022 Plan. Upon the issuance of Class B Ordinary Shares, the Company recorded the share capital of RMB 172, with corresponding accounts to additional paid-in capital. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Summary of Principal Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the Group’s audited consolidated financial statements for the years ended September 30, 2022 filed on February 15, 2022. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Group believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Group’s consolidated financial statements for the year ended September 30, 2022. The results of operations for the six months ended March 31, 2022 and 2023 are not necessarily indicative of the results for the full years. | Basis of presentation As of and for the years ended September 30, 2020 and 2021, the consolidated financial statements include the financial statements of the Group, its subsidiaries and consolidated variable interest entity and its subsidiaries. As of and for the year ended September 30, 2022, the consolidated financial statements include the financial statements of the Group, its subsidiaries and the consolidated variable interest entity. All intercompany transactions and balances are eliminated on consolidation. 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 3,558,667 and RMB 3,601,992 as of September 30, 2022 and March 31, 2023, respectively. Net cash used in operating activities were RMB 27,545 and RMB 25,478 for the six months ended March 31, 2022 and 2023, respectively. As of September 30, 2022 and March 31, 2023, current liabilities exceeded current assets by RMB 597,242 and RMB 848,038, respectively. These factors raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Group is unable to continue as a going concern. The Group has adopted a defensive strategy after a prudent assessment of the broader macroeconomic downturn since COVID-19 by consolidating internal resources, further improving operating efficiencies and focusing on asset quality improvement rather than aggressive expansion. The Group’s number of rental units contracted as well as number of available rental units decreased by 48.5% from March 31, 2022 to March 31, 2023, as the Group continued to optimize its rental asset portfolio. On the other hand, the Group’s total operating cost and expenses decreased by 56.2% from RMB553.3 million (US$87.3 million) in the six months ended March 31, 2022 to RMB242.4 million (US$35.3 million) in the six months ended March 31, 2023 and its net loss narrowed by 82.2% from RMB243.2 million (US$38.4 million) in the six months ended March 31, 2022 to RMB43.3 million (US$6.3 million) in the six months ended March 31, 2023. The Group intends to meet the cash requirements for the next 12 months from the issuance date of this report through a combination of bank loans and short-term loan from certain third parties, issuance of ordinary shares or other equity-linked securities. In addition, the Group has continued to adopt the defensive strategy mentioned above and optimize its rental asset portfolio. The Group’s number of rental units contracted and available rental units decreased from 55,177 as of March 31, 2022 to 28,400 as of March 31, 2023 during the same period, whereas its loss from operation decreased from RMB 189.0 million in the six months ended March 31, 2022 to RMB42.7 million in the six months ended March 31, 2023. The Group will also focus on the follow activity: ● On October 26, 2022, the Company’s Form F-3 to offer up to a total amount of $300 million was declared effective. The Company plans to raise funds under the Form F-3 to support the Company’s operations. The Management plan cannot alleviate the substantial doubt of the Group’s ability to continue as a going concern. There can be no assurance that the Group will be successful in achieving its strategic plans, that the Group’s future capital raises will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or with acceptable terms, if at all. If the Group is unable to raise sufficient financing or events or circumstances occur such that the Group is not able to achieve ideal optimization of its asset portfolio, the Group will be required to reduce certain discretionary spending, alter or scale back research and development programs, or be unable to fund capital expenditures, which would have a material adverse effect on the Group’s financial position, results of operations, cash flows, and ability to achieve its intended business objectives. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the unaudited condensed consolidated financial statements have been prepared on a basis that assumes the Group will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. | Going concern The Group has been incurring losses from operations since its inception. Accumulated deficits amounted to RMB 4,378,690 and RMB 3,558,667 as of September 30, 2021 and 2022, respectively. Net cash used in operating activities were RMB 109,661 and RMB 39,589 for the years ended September 30, 2021 and 2022, respectively, while the Group generated cash of RMB 54,841 from operating activities for the year ended September 30, 2020. As of September 30, 2021 and 2022, current liabilities exceeded current assets by RMB 2,170,955 and RMB 597,242, respectively. In addition, the Group’s operations have been affected by the outbreak and spread of the coronavirus disease 2019 (COVID-19). During the period, the Group 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 years ended September 30, 2020, 2021 and 2022, the average month-end occupancy rate and the rental spread margin before discount for rental prepayments decreased as compared to fiscal year 2019 mainly due to the impact of COVID-19. These factors raise substantial doubt about the Group’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Group is unable to continue as a going concern. The Group 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 ordinary shares, principal shareholder’s financial support. The Group will focus on the following activities: ● On October 26, 2022, the Company’s Form F-3 to offer up to a total amount of $300 million was declared effective. The Company plans to raise funds under the Form F-3 to support the Company’s operations; and ● In January 2023, a shareholder of the Group, has agreed to consider providing 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. The Management plan cannot alleviate the substantial doubt of the Group’s ability to continue as a going concern. There can be no assurance that the Group will be successful in achieving its strategic plans, that the Group’s future capital raises will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or with acceptable terms, if at all. If the Group is unable to raise sufficient financing or events or circumstances occur such that the Group does not meet its strategic plans, the Group will be required to reduce certain discretionary spending, alter or scale back research and development programs, or be unable to fund capital expenditures, which would have a material adverse effect on the Group’s financial position, results of operations, cash flows, and ability to achieve its intended business objectives. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the consolidated financial statements have been prepared on a basis that assumes the Group will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Group, its subsidiaries and consolidated variable interest entity and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. Upon the transfer of equity in Q&K HK and Q&K Investment Consulting on December 17, 2021 and October 26, 2021, respectively, the Group became primary beneficiary of the two former subsidiaries. Since the dates of equity transfer, the Group consolidated Q&K HK and Q&K Investment Consulting as variable interest entities. 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 its respective shareholders through which the Group became the primary beneficiary of Q&K E-Commerce and its subsidiaries. The following is a summary of the key VIE Agreements: Shareholder Voting Proxy Agreement Q&K Investment Consulting, Q&K E-Commerce and the shareholders of Q&K E-Commerce entered into a shareholder voting proxy agreement on April 21, 2015. Pursuant to the voting proxy agreement, each shareholder of Q&K E-Commerce irrevocably authorizes any person(s) designated by Q&K Investment Consulting to act as his or her attorney-in-fact to exercise all of such shareholder’s voting and other rights associated with the shareholder’s equity interest in Q&K E-Commerce, such as the right to appoint or remove directors, supervisors and officers, as well as the right to sell, transfer, pledge and dispose of all or a portion of the shares held by such shareholder. The shareholder voting proxy agreement will remain in force unless Q&K Investment Consulting gives out any instruction in writing or otherwise. Spousal Consent Letters The spouse of one shareholder of Q&K E-Commerce who holds 10.47% equity interest in Q&K E-Commerce signed a spousal consent letter on April 14, 2015. Under the spousal consent letter, the signing spouse unconditionally and irrevocably agreed, respectively, that she was aware of the disposal of Q&K E-Commerce shares held by the shareholder in the abovementioned exclusive option agreement, equity pledge agreement, shareholder voting proxy agreement and power of attorney. The signing spouse confirmed not having any interest in the Q&K E-Commerce shares and committed not to impose any adverse assertions upon those shares. The signing spouse further confirmed that her consent and approval are not needed for any amendment or termination of the abovementioned agreements and committed that she shall take all necessary measures needed for the performance of those agreements. Exclusive Technology Service Agreement Q&K Investment Consulting and Q&K E-Commerce entered into an exclusive technology service agreement on April 21, 2015. Pursuant to this agreement, Q&K Investment Consulting or its designated party has the exclusive right to provide Q&K E-Commerce with consulting, software and technology services. Without Q&K Investment Consulting’s prior written consent, Q&K E-Commerce shall not accept any technical support and services covered by this agreement from any third party. Q&K E-Commerce agrees to pay service fees equivalent to no less than 100% of its annual net profit. Q&K E-Commerce also agrees to pay service fees for any specific technology service and consultation service rendered by Q&K Investment Consulting at Q&K E-Commerce’s request from time to time. Q&K Investment Consulting owns the intellectual property rights arising out of the provisions of services under this agreement. Unless terminated mutually, this agreement will remain effective for twenty years. This agreement will be automatically renewed for another ten years, unless there is any written objection rendered third days prior to its expiry. Exclusive Option Agreement Q&K Investment Consulting, Q&K E-Commerce and the shareholders of Q&K E-Commerce entered into an exclusive option agreement in 2015. Pursuant to the exclusive option agreement, Q&K E-Commerce and its shareholders have irrevocably granted Q&K Investment Consulting or any third party designated by Q&K Investment Consulting an exclusive option to purchase all or part of their respective equity interests in Q&K E-Commerce. The purchase price shall be the lower of (i) the amount that the shareholders contributed to Q&K E-Commerce as registered capital for the equity interests to be purchased, or (ii) the lowest price permitted by applicable PRC law. The shareholders of Q&K E-Commerce irrevocably agree that if such price is lower than what is allowed by PRC law, the purchase price should be equal to the lowest price allowed by PRC law. Q&K E-Commerce or its shareholders will repay Q&K Investment Consulting or any third party designated by Q&K Investment Consulting the purchase price within ten business days after Q&K E-Commerce or its shareholders receives such purchase price. In addition, Q&K E-Commerce granted Q&K Investment Consulting an exclusive option to purchase, or have its designated entity or person, to purchase, at its discretion, to the extent permitted under PRC law, all or part of Q&K E-Commerce’s assets at the net book value of the transferred assets, or the lowest price permitted by applicable PRC law if the latter is higher than the relevant net book value. 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 its shareholders. Without Q&K Investment Consulting’s prior written consent, the shareholders of Q&K E-Commerce shall not, among other things, amend its articles of association, increase or decrease the registered capital, sell, dispose of or set any encumbrance on its assets, business or revenue outside the ordinary course of business, enter into any material contract, merge with any other persons or make any investments, distribute dividends, or enter into any transactions which have material adverse effects on its business. The shareholders of Q&K E-Commerce also undertake that they will not transfer, pledge, or otherwise dispose of their equity interests in Q&K E-Commerce to any third party or create or allow any encumbrance on their equity interests. This agreement will remain effective until Q&K Investment Consulting or any third party designated by Q&K Investment Consulting has acquired all equity interest of Q&K E-Commerce from its shareholders. Equity Pledge Agreement Q&K Investment Consulting, Q&K E-Commerce and the shareholders of Q&K E-Commerce entered into an equity pledge agreement on April 21, 2015. Pursuant to the equity pledge agreement, each shareholder of Q&K E-Commerce has pledged all of its equity interest in Q&K E-Commerce to Q&K Investment Consulting to guarantee the performance by such shareholder and Q&K E-Commerce of their respective obligations under the exclusive technology service agreement, shareholder voting proxy agreements, and exclusive option agreement as well as their respective liabilities arising from any breach. If Q&K E-Commerce or any of its shareholders breaches any obligations under these agreements, Q&K Investment Consulting, as pledgee, will be entitled to dispose of the pledged equity and have priority to be compensated by the proceeds from the disposal of the pledged equity. Each of the shareholders of Q&K E-Commerce agrees that before its obligations under the contractual arrangements are discharged, he or she will not dispose of the pledged equity interests, create or allow any encumbrance on the pledged equity interests, or take any action which may result in any change of the pledged equity that may have material adverse effects on the pledgee’s rights under this agreement without the prior written consent of Q&K Investment Consulting. The equity pledge agreement will remain effective until Q&K E-Commerce and its shareholders discharge all their obligations under the contractual arrangements. The Group has completed the registration of the equity pledge with the relevant office of the Administration for Industry and Commerce in accordance with PRC Property Rights Law on April 30, 2015. The Group believes that the contractual arrangements with Q&K E-Commerce 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 Group’s PRC subsidiaries and Q&K E-Commerce; ● discontinue or restrict the operations of any related-party transactions between the Group’s PRC subsidiaries and Q&K E-Commerce; ● limit the Group’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Group’s PRC subsidiaries and Q&K E-Commerce may not be able to comply; ● require the Group or the Group’s PRC subsidiaries or Q&K E-Commerce to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Group’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 Q&K E-Commerce or the right to receive their economic benefits, the Group would no longer be able to consolidate the financial results of Q&K E-Commerce. The following financial statement amounts and balances of the Q&K HK, Q&K Investment Consulting and Q&K E-Commerce (collectively “VIE entities”) and their subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The revenues, net loss and cash flows for the year of 2022 represented the amounts of Q&K HK and Q&K Investment Consulting for the period from dates of equity transfer through September 30, 2022, the amounts of Q&K E-Commerce for the year ended September 30, 2022 and the amounts of the subsidiaries of Q&K E-Commerce for the period from October 1, 2021 through the dates of deconsolidation. As of September 30, 2021 2022 RMB RMB USD ASSETS Cash and cash equivalents 10,982 62 9 Restricted cash 2,893 — — Accounts receivable 370 — — Prepaid rent and deposit 571 — — Advances to suppliers 5,323 6,131 862 Other current assets 97,978 2,572 362 Property and equipment, net 38,940 — — Intangible assets, net 539 — — Other assets 108 98 14 Total assets 157,704 8,863 1,247 LIABILITIES Accounts payable 281,458 34 5 Deferred revenue 1,125 16 2 Short-term debt 256,773 13,000 1,828 Rental instalment loans 33 — — Deposits from tenants 1,422 — — Accrued expenses and other current liabilities 875,572 67,908 9,547 Long-term debt 201,041 — — Total liabilities 1,617,424 80,958 11,382 For the years ended September 30, 2020 2021 2022 RMB RMB RMB USD Net revenues 965,093 173,921 1,635 230 Net loss (1,491,565 ) (375,470 ) (43,940 ) (6,177 ) For the years ended September 30, 2020 2021 2022 RMB RMB RMB USD Net cash provided by (used in) operating activities 72,293 (108,705 ) (16,087 ) (2,261 ) Net cash used in investing activities (99,172 ) — (217 ) (31 ) Net cash (used in) provided by financing activities (95,948 ) 98,466 2,267 319 The consolidated VIE entities and their subsidiaries contributed 80%, 17% and 0.3% and of the Group’s consolidated revenues for the years ended September 30, 2020, 2021 and 2022. As of September 30, 2021 and 2022, the consolidated VIE entities and their subsidiaries accounted for an aggregate of 42% and 9%, respectively, of the Group’s consolidated total assets, and 57% and 12%, respectively, of the Group’s consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE entities. However, the Company has provided and will continue to provide financial support to the VIE considering the business requirements of the VIE entities, as well as the Company’s own business objectives in the future. There are no assets held in the VIE entities and its subsidiaries that can be used only to settle obligations of the VIE entities and their subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE entities and their subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE entities do not have recourse to the general credit of the Group for any of the liabilities of the VIE entities. Relevant PRC laws and regulations restrict the VIE entities from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Group in the form of loans and advances or cash dividends. Please refer to Note 14 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 and intangible assets, valuation allowance of deferred tax assets, share-based compensation, fair value of the convertible note without the warrants and the warrants themselves. | |
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 As of September 30, 2021, restricted cash mainly represents the Group’s frozen bank accounts deposits to the bank as a form of security with respect to the Group’s debt and tenants’ repayment of rental instalment loans. As of September 30, 2022, restricted cash mainly represents the Group’s frozen bank accounts for liquidation of the VIE’s subsidiaries. The restricted cash are not available to fund the general liquidity needs of the Group. | |
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: Property and equipment Useful lives Furniture, fixtures and equipment 3 years Motor vehicles 4 years 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) income as the difference between the net sales proceeds and the carrying amount of the underlying asset. | |
Intangible assets, net | Intangible assets, net On July 22, 2020, the Group 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 Group also assumed liabilities associated with acquired assets. The Group accounted for the acquisition as an asset acquisition because the Group 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: Intangible assets Useful lives Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years | |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. For the six months ended March 31, 2022 and 2023, the Group recognized impairment of RMB 100,156 and RMB 10,474 against trademark and apartment rental contracts ( See Note 5 – Intangible assets | Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. For the years ended September 30, 2020, the Group recognized impairment losses of RMB 846,766 against certain apartments due to the continued underperformance relative to the projected operating results. For the year ended September 30, 2021, the Group recognized impairment losses of RMB 199,575 against leasehold improvements and furniture, fixtures and equipment used in apartments under capital lease and other financing arrangements. The Group expected it would not receive any cash flow from these property and equipment, as the Group terminated cooperation with the rental service company and no longer received fee income during the year (See Note 2–- Capital lease and other financing arrangement For the year ended September 30, 2022, the Group recognized impairment of RMB 70,606 and RMB 29,550 against trademark and apartment rental contracts (See Note 2 – Fair value |
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 Group 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 Group for costs incurred for the renovation. The Group then makes payments to the rental service company in instalments 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 Group. The Group accounts for this arrangement with the rental service company as a capital lease. Under the same arrangement above, the Group 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. During the year ended September 30, 2021, the Group terminated cooperation with the rental service company, and the Group reclassified the capital lease payable and other financing payable to the account of “Accrued expenses and other current liabilities”. Because the underlying leasehold improvements or furniture, fixtures and equipment used in apartments did not provide future cash flows for the Group, the Group provided full impairment against these leasehold improvements or furniture, fixtures and equipment. As of September 30, 2021 and 2022, the Group had no | |
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 period represents the term during which termination will result in the forfeiture of deposit, which is typically 1 or 2 months’ rent. The Group determines that the lock-in period is the lease term under ASC 840. Upon termination of leases, the Group returns unused portions of any prepaid rentals to the tenant within a prescribed period of time. Deposit can only be returned for termination after lock-in period. Monthly rent is fixed throughout the lease term and there is no rent-free period or rent escalations during the period. The Group determines all lease arrangements with tenants are operating leases since the benefits and risks incidental to ownership remains with the Group. Revenue is recognized on a straight-line basis starting from the commencement date stated in the lease agreements. In April 2020, the Group started to modify arrangements with a rental service company (See Capital lease and other financing arrangement) In December 2020 through August 2021, the Group terminated the arrangements with the rental service company. As of September 30, 2021, the Group did not provide supervision services over the third-party contractor and did not receive fee income from the rental service company. Accordingly the Group ceased recognition of lease income upon termination of the arrangements. 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 5% rental discount, and tenants who prepay at least the first twelve months of lease term rental can enjoy a 10% rental discount (subject to a RMB200 limit per month). Such incentives are only applicable during the lock-in period. The Group considers the rental discounts as a lease incentive and records it as a reduction in revenue on a straight line basis over the lease term. The Group recorded RMB 12,921, RMB 5,695 and RMB nil Rental instalment loan arrangement In order to encourage tenants to make advance payments, the Group cooperates with various financial institution partners to facilitate rental instalment loans for its tenants, who apply for rental instalment loans directly with these financial institutions. The financial institutions approve or decline the rental instalment loans based on the tenants credit profile, and approval of the rental instalment 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 instalment loans. Tenants repay the loan principal in monthly instalments directly to the financial institutions which equals to the monthly rental payment. The Group pays instalment 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 instalment loan scheme, the Group has full control of the entire instalment 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 nil as of September 30, 2021 and 2022. The Group did not enter into new rental instalment loan arrangements from April 2021. Impact on cash flows For rental instalment 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 instalment 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 to six years which may be extended for an additional three or two years at the discretion of the landlords. Since all the benefits and risks incidental to ownership remains with the landlord, the Group determines that these arrangements are operating leases. The Group typically negotiates a rent-free period of one – two months per year and locks in a fixed rent for the first three years and approximately 5% annual, non-compounding increase for the rest of the lease period. As such, typically all leases with landlords contain rent holidays and fixed escalations of rental payments during the lease term. The Group determines the lease term under ASC 840 to include the years that can be early terminated by the landlords. The Group records total lease expense on a straight-line basis over the lease term and the difference between the straight-line lease expense and cash payments under the lease is recorded as deferred rent on the consolidated balance sheets. In December 2020 through August 2021, the Group terminated the arrangements with the rental service company. Accordingly the Group early terminated lease agreements with landlords. Upon termination, the deferred rent was accelerated in recognition as a reduction against rental expenses of RMB 100,962. As of September 30, 2021 and 2022, the Company had no Rental expense to the landlords recorded in consolidated statements of comprehensive losses were RMB 813,773, RMB 642,354 and RMB 539,487 for the years ended September 30, 2020, 2021 and 2022, respectively. | |
Value-added services and others | Value-added services and others The Group 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 Group 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 Group 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 Group expects to be entitled to in exchange for those products. The Group also evaluates whether it is appropriate to record the gross amount of product sales. When the Group is a principal, that the Group 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 years ended September 30, 2020, 2021 and 2022, 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 expenses The Group expenses certain costs incurred in connection with apartment pre-operation activities, mainly including rental expenses and sourcing staff costs incurred before an apartment is ready for lease. | |
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 RMB 10,773, RMB nil nil | |
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 RMB 18,283, RMB 3,383 and RMB 1,349 for the years ended September 30, 2020, 2021 and 2022, 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% for rendering services, 9% for rental business and 13% for sales of goods, 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 approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Group recognizes interest and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheet and under other expenses in its consolidated statement of comprehensive loss. As of September 30, 2021 and 2022, the Group did not have any significant unrecognized uncertain tax positions. | |
Treasury shares | Treasury shares The Group 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 of RMB 248,859 and issuance of convertible notes of RMB 49,251 (equivalent to $7,232). For the year ended September 30, 2021, the Group issued 77,250,000 treasury shares as debt extinguishment costs, to one creditor who made loans to the Group. For the year ended September 30, 2021, the Group issued 77,100,000 treasury shares and repurchase the same amount of treasury shares which were used as a pledge with Shanghai Huarui Bank (“SHRB”). For the year ended September 30, 2022, the Company reissued the 77,100,000 treasury shares to a third party which purchased and assumed the unpaid borrowings due to SHRB. As of September 30, 2021 and 2022, the Group had treasury shares account of 77,100,000 and nil nil | |
Reclassification | Reclassification Certain reclassifications have been made to the prior year’s consolidated balance sheets to conform to the current year’s presentation. These reclassifications had no impact on net income/(loss), shareholders’ equity, or cash flows as previously reported. | |
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, 2022 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 7.1135, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on September 30, 2022. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on September 30, 2022, or at any other rate. | |
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 Group’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 Group’s operations. Coronavirus (“COVID-19”) Impact The Group’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-19outbreak is causing lockdowns, travel restrictions, and closures of businesses. While the outbreak of COVID-19 has come under control in the PRC since the second quarter of 2020, there was a significant rise in COVID-19 cases, including the COVID-19 Delta and Omicron variant cases, in various cities in China in early 2022. The local governments of the affected cities, including Shanghai, have reinstated certain COVID-related measures, including travel restrictions and stay-at-home orders. The Group’s businesses have been negatively impacted by the COVID-19 coronavirus outbreak to a certain extent. Due to the outbreak of COVID-19 since February 2020 through September 2022, the Chinese government required the nationwide closure of many business activities in the PRC to prevent the spread of COVID-19and protect public health. During this period, the Group 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 years ended September 30, 2020 , 2021 and 2020, the average month-end occupancy rate and the rental spread margin before discount for rental prepayments decreased as compared to fiscal year 2019 mainly due to the impact of COVID-19. In December 2022, the local government abandoned its policies on quarantine at home and large-scale lockdowns, and the COVID-19 has been spreading rapidly in China. However, based on the assessment of current economic environment, customer demand and revenue trend, and the negative impact from COVID-19 outbreak and spread, it appears that the Group’s revenue and operating cash flows may continue to underperform in the next 12 months. Further, a resurgence could further negatively affect both major business segments and impair their ability to regain pre-covid operating levels. As such, the future impact of COVID-19 is still highly uncertain and cannot be predicted as of the financial statement reporting date. | |
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 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 instalment 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. 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, 2021 and 2022: Fair Value Measurements at Reporting Date Using Description Fair Value Quoted Prices Significant Significant Total Gain As of September 30, 2021 Contingent liabilities for payable for asset acquisition 164,254 164,254 — — — As of September 30, 2022 Contingent liabilities for payable for asset acquisition 165,033 165,033 — — — The fair value of contingent liabilities for payable for asset acquisition was referred to the market share price of the Group and the liabilities are classified in Level 1 of the valuation hierarchy. See Note 8 for contingent liabilities for payable for asset acquisition. The following table presents the Group’s assets measured at fair value on a non-recurring basis as of September 30, 2021 and 2022: Fair Value Measurements at Reporting Date Using Years Ended Description Fair Value Quoted Prices Significant Significant Total 2021 Property and equipment — — — — 199,575 2021 Apartment rental agreements 75,883 — — 75,883 — 2022 Apartment rental agreements 13,475 — — 13,475 29,550 2021 Trademarks 76,038 — — 76,038 — 2022 Trademarks — — — — 70,606 The property and equipment subject to impairment test represented leasehold improvements, and furniture, fixtures and equipment used in apartments. 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, 3% and 11% for the year ended September 30, 2020. As of September 30, 2021, these property and equipment no longer generated cash flow for the Group, the Group recognizes full allowance against the property and equipment. 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 RMB 313,354, RMB 199,575 and RMB nil The Group acquired from Great Alliance Coliving Limited. and its affiliates (“Beautiful House”) certain assets, including approximately 72,000 apartment rental contracts and leasehold improvements attached to the apartments, and trademarks of Beautiful House. The Group determined the estimated fair values using Level 3 inputs after review and consideration of relevant information, which are unobservable inputs that fall within Level 3 of the fair value hierarchy. As 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 RMB 425,341 and RMB 108,071, respectively, for the year ended September 30, 2020. As of September 30, 2021, 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 apartment rental agreements and trademarks 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. The revenue growth rate for apartment rental agreements was 3%, as a result of increase of unit rental fee by 3%, and the discount rate was 11% for the year ended September 30, 2021, which met the profit projection target. The revenue growth rate and discount rate for trademarks were negative 8% and 11 %. Because the fair value was higher than the carrying amount of the apartment rental agreements and trademarks, the Group did not recognize impairment against these intangible assets for the year ended September 30, 2021. The revenue growth rate and discount rate for trademarks were negative 8% and 11 %. Because the fair value was higher than the carrying amount of the apartment rental agreements and trademarks, the Group did not recognize impairment against these intangible assets for the year ended September 30, 2021. The revenue growth rate for apartment rental agreements was 0%, as a result of increase of unit rental fee by 0%, and the discount rate was 11% for the year ended September 30, 2022, which underperformed the profit projection target. In addition, with the Group changed its name into FLJ in September 2022, the Company would no longer operate rental business under the trademark of “Beautiful House”. The Group provided impairment of RMB 29,550 and RMB 70,606, respectively, on apartment rental contracts and trademarks for the year ended September 30, 2022. | |
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, 2020, 2021 and 2022, the Group recognized share-based compensation expenses of RMB 16,045, RMB 15,806 and RMB 9,771, respectively, in the consolidated statements of comprehensive loss. | |
(Losses) earnings per share | (Losses) earnings per share Basic (losses) earnings 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. Diluted (loss) earnings 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 share options, convertible notes and warrants, which could potentially dilute basic earnings per share in the future. To calculate the number of shares for diluted (loss) earnings per share, the effect of the convertible redeemable and non-redeemable preferred shares, share options and warrants is computed using the two-class method or the as-if converted method, whichever is more dilutive. | |
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 acquisition | Asset acquisition Referring to FASB ASC Topic 805-10-55-5, the Group 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 Group 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 ASU2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including final periods within those fiscal years. In transition, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-10 Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements. ASU No. 2018-10affects narrow aspects of the guidance issued in the amendments in Update2016-02and ASU No. 2018-11allows for an additional optional transition method where comparative periods presented in the financial statements in the period of adoption will not be restated and instead, companies will recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In November 2019, the FASB issued ASU2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. ASU2019-10amends the effective dates for ASU2016-02. The Group is an EGC and expects to adopt ASU2016-02 utilizing the optional transition approach allowed under ASU2018-11 and apply the package of practical expedients beginning October 1, 2022. The Group expects material changes to its consolidated balance sheet to recognize right-of-use lease assets and related lease liabilities for operating leases. On October 1, 2022, the Group recognized approximately RMB 627 million of right-of-use assets and operating lease liabilities upon the adoption of ASC 842. In June 2016, the FASB issued ASU2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments. This ASU provides more useful information about expected credit losses to financial statement users and changes how entities will measure credit losses on financial instruments and timing of when such losses should be recognized. This ASU is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. The updates should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). ASU2019-10amends the effective dates for ASU2016-13. The Group is an EGC and has elected to adopt the new standard as of the effective date applicable to non-issuers and will implement the new standard on October 1, 2023. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity-linked contracts to qualify for scope exception, and it simplifies the diluted earnings per share calculation in certain areas. The Group continues to evaluate the impact of ASU 2020-06 on its financial position, results of operations or cash flows. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Group’s financial statements. | |
Financial statement amounts and balances of the VIE and its subsidiaries | Financial statement amounts and balances of the VIE and its subsidiaries The following financial statement amounts and balances of the Q&K HK, Q&K Investment Consulting and Q&K E-Commerce (collectively “VIE entities”) and their subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. The revenues, net loss and cash flows for the six months ended March 31, 2022 represented the amounts of Q&K HK and Q&K Investment Consulting for the period from dates of equity transfer through March 31, 2022, and the amounts of the amounts of Q&K E-Commerce and its subsidiaries for the six months ended March 31, 2022. The revenues, net loss and cash flows for the six months ended March 31, 2023 represented the amounts of VIE entities for the six months ended March 31, 2023. As of September 30, As of March 31, 2022 2023 RMB RMB USD ASSETS Cash and cash equivalents 62 63 9 Advances to suppliers 6,131 6,136 893 Other current assets 2,572 2,572 375 Other assets 98 98 14 Total assets 8,863 8,869 1,291 LIABILITIES Accounts payable 34 34 5 Deferred revenue 16 16 2 Short-term debt 13,000 13,000 1,893 Accrued expenses and other current liabilities 67,908 68,124 9,920 Total liabilities 80,958 81,174 11,820 For the Six Months Ended 2022 2023 RMB RMB USD Net revenues 1,621 — — Net loss (41,909 ) (221 ) (32 ) Net cash used in operating activities (10,773 ) 1 0 Net cash provided by investing activities — — — Net cash provided by financing activities — — — The consolidated VIE entities and their subsidiaries contributed 0.4% and nil There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE entities. However, the Company has provided and will continue to provide financial support to the VIE considering the business requirements of the VIE entities, as well as the Company’s own business objectives in the future. There are no assets held in the VIE entities and its subsidiaries that can be used only to settle obligations of the VIE entities and their subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE entities and their subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE entities do not have recourse to the general credit of the Group for any of the liabilities of the VIE entities. Relevant PRC laws and regulations restrict the VIE entities from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Group in the form of loans and advances or cash dividends. | |
Revenue Recognition | Revenue Recognition The Group sources apartments from landlords and convert them into standardized furnished rooms to lease to tenants seeking affordable residences in China. Revenues are primarily derived from rental service and value-added services. Rental Service Revenues Rental service revenues are primarily derived from the lease payments from tenants and are recorded net of tax. The Group typically enters into 26-month leases with tenants, a majority of which have a lock-in period of 12 months or shorter. The lock-in period represents the term during which termination will result in the forfeiture of deposit, which is typically one or two months’ rent. The Group determines that the lock-in period is the lease term under ASC 840. When tenants terminate their leases, the Group returns unused portions of any prepaid rentals to the tenant within a prescribed period of time. Deposit can only be returned for termination after the lock-in period. Monthly rent is fixed throughout the lock-in period and there is no rent-free period or rent escalations during the period. The Group determines all lease arrangements with tenants are operating leases since the benefits and risks incidental to ownership remains with the Group. Revenue is recognized on a straight-line basis starting from the commencement date stated in the lease agreements. Value-added Services and Others Value-added services and others primarily consist of fees received from the tenants from provision of internet connection and utility services as part of the lease agreement. The service fees are fixed in the agreements and recognized on a monthly basis during the period of the lease term. The service fee are recognized on a gross basis as the Group has latitude in determining prices and bear inventory risks. | |
Operating lease | Operating lease The Company adopted the ASU 2016-02, Leases (Topic 842) on October 1, 2022 using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered after, the beginning of the earliest comparative period presented in the consolidated financial statements. The Company leases apartments from landlords, which are classified as operating leases in accordance with Topic 842. Operating leases are required to record in the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected the short-term lease exemption as the lease terms are 12 months or less. At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment. There was no |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Organization and Principal Activities [Abstract] | ||
Schedule of Significant Subsidiaries and VIE | As of March 31, 2023, the Group’s significant subsidiaries and VIE: Entity Date of Place of Percentage of Principal Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding Fenglinju (China) Hong Kong Limited (“Fenglinju”) October 21, 2021 Hong Kong 100 % Holding Haoju (Shanghai) Artificial Intelligence Technology Co., Ltd (formerly known as “Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd.”) (“Q&K AI”) May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment Management Co., Ltd June 19, 2020 PRC 100 % Operating VIE: QingKe (China) Limited (“Q&K HK”) July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting”) April 2, 2015 PRC 100 % Holding and Operating Shanghai Qingke E-Commerce Co., Ltd. (“Q&K E- Commerce”) August 2, 2013 PRC 100 % Holding and Operating | As of September 30, 2022, the Group’s significant subsidiaries and VIE: Entity Date of Place of Percentage of Principal Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding Fenglinju (China) Hong Kong October 21, 2021 Hong Kong 100 % Holding Haoju(shanghai) Artificial May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment June 19, 2020 PRC 100 % Operating VIE: QingKe (China) Limited July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., April 2, 2015 PRC 100 % Holding and Operating Shanghai Qingke E-Commerce Co., August 2, 2013 PRC 100 % Holding and Operating |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Summary of Principal Accounting Policies [Abstract] | ||
Schedule of Financial Statement Amounts and Balances of the VIE and its Subsidiaries | The revenues, net loss and cash flows for the year of 2022 represented the amounts of Q&K HK and Q&K Investment Consulting for the period from dates of equity transfer through September 30, 2022, the amounts of Q&K E-Commerce for the year ended September 30, 2022 and the amounts of the subsidiaries of Q&K E-Commerce for the period from October 1, 2021 through the dates of deconsolidation. As of September 30, 2021 2022 RMB RMB USD ASSETS Cash and cash equivalents 10,982 62 9 Restricted cash 2,893 — — Accounts receivable 370 — — Prepaid rent and deposit 571 — — Advances to suppliers 5,323 6,131 862 Other current assets 97,978 2,572 362 Property and equipment, net 38,940 — — Intangible assets, net 539 — — Other assets 108 98 14 Total assets 157,704 8,863 1,247 LIABILITIES Accounts payable 281,458 34 5 Deferred revenue 1,125 16 2 Short-term debt 256,773 13,000 1,828 Rental instalment loans 33 — — Deposits from tenants 1,422 — — Accrued expenses and other current liabilities 875,572 67,908 9,547 Long-term debt 201,041 — — Total liabilities 1,617,424 80,958 11,382 For the years ended September 30, 2020 2021 2022 RMB RMB RMB USD Net revenues 965,093 173,921 1,635 230 Net loss (1,491,565 ) (375,470 ) (43,940 ) (6,177 ) For the years ended September 30, 2020 2021 2022 RMB RMB RMB USD Net cash provided by (used in) operating activities 72,293 (108,705 ) (16,087 ) (2,261 ) Net cash used in investing activities (99,172 ) — (217 ) (31 ) Net cash (used in) provided by financing activities (95,948 ) 98,466 2,267 319 | |
Schedule of Expected Useful Lives of Property and Equipment, Net | The expected useful lives are as follows: Property and equipment Useful lives Furniture, fixtures and equipment 3 years Motor vehicles 4 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: Intangible assets Useful lives Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years | |
Schedule of Fair Value of Fnancial 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, 2021 and 2022: Fair Value Measurements at Reporting Date Using Description Fair Value Quoted Prices Significant Significant Total Gain As of September 30, 2021 Contingent liabilities for payable for asset acquisition 164,254 164,254 — — — As of September 30, 2022 Contingent liabilities for payable for asset acquisition 165,033 165,033 — — — | |
Schedule 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 basis as of September 30, 2021 and 2022: Fair Value Measurements at Reporting Date Using Years Ended Description Fair Value Quoted Prices Significant Significant Total 2021 Property and equipment — — — — 199,575 2021 Apartment rental agreements 75,883 — — 75,883 — 2022 Apartment rental agreements 13,475 — — 13,475 29,550 2021 Trademarks 76,038 — — 76,038 — 2022 Trademarks — — — — 70,606 | |
Schedule of Financial Statement Amounts and Balances of the VIE and its Subsidiaries | The revenues, net loss and cash flows for the six months ended March 31, 2023 represented the amounts of VIE entities for the six months ended March 31, 2023. As of September 30, As of March 31, 2022 2023 RMB RMB USD ASSETS Cash and cash equivalents 62 63 9 Advances to suppliers 6,131 6,136 893 Other current assets 2,572 2,572 375 Other assets 98 98 14 Total assets 8,863 8,869 1,291 LIABILITIES Accounts payable 34 34 5 Deferred revenue 16 16 2 Short-term debt 13,000 13,000 1,893 Accrued expenses and other current liabilities 67,908 68,124 9,920 Total liabilities 80,958 81,174 11,820 For the Six Months Ended 2022 2023 RMB RMB USD Net revenues 1,621 — — Net loss (41,909 ) (221 ) (32 ) Net cash used in operating activities (10,773 ) 1 0 Net cash provided by investing activities — — — Net cash provided by financing activities — — — |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Other Current Assets [Abstract] | ||
Schedule of Other Current Assets | Other current assets consist of the following: As of September 30, As of March 31, 2022 2023 Due from a service provider (1) 36,100 37,552 Deposit for share settlement (2) 21,341 20,602 Due from shareholders (3) — 13,910 Others 1,588 1,906 59,029 73,970 (1) Upon asset acquisition with Beautiful House, the Group engaged a third party service provider to provide apartment operation services to the Group. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House. To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and loans are repayable on demand. (2) Upon settle payables due to Beautiful House arising from asset acquisition, the Group made a deposit of RMB 20,602 (US$3,000) to Beautiful House, which is expected to get repaid upon share settlement. (3) During the six months ended March 31, 2023, the Company paid RMB 13,910 on behalf of certain shareholders who owned less than 5% of outstanding shares of the Company, for transfer of their ordinary shares into ADS which could be traded in the open market. The balance was repayable on demand. | Other current assets consist of the following: As of September 30, 2021 2022 Receivable from sales of buildings under construction (1) 100,300 — Due from a service provider (2) 23,326 36,100 Deposit for share settlement (3) 19,279 21,341 Others 438 1,588 143,343 59,029 (1) During the year ended September 30, 2021, the Group sold buildings under construction (See Note 4, Property and equipment, net (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. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House (Note 8). To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and the loans are repayable on demand. (3) Upon settle payables due to Beautiful House arising from asset acquisition (Note 8), the Group paid a deposit of RMB 21,341 (US$3,000) to Beautiful House, which is expected to get repaid upon share settlement. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following: As of September 30, As of March 31, 2022 2023 Cost: Vehicle 2,269 2,269 Office furniture, fixtures and equipment 922 922 3,191 3,191 Less: Accumulated depreciation (2,691 ) (2,849 ) 500 342 | Property and equipment, net consist of the following: As of September 30, 2021 2022 Cost: Buildings 40,167 — Vehicle 3,043 2,269 Office furniture, fixtures and equipment 20,456 922 63,666 3,191 Less: Accumulated depreciation (24,726 ) (2,691 ) 38,940 500 |
Schedule of Disposed Property and Equipment | On the disposal date, the disposed property and equipment were comprised of the following. For the years ended September 30, 2020 2021 2022 Cost: Buildings 620,354 45,548 — Vehicle 253,205 22,830 — Office furniture, fixtures and equipment 500 50 — 874,059 68,428 — Less: Accumulated depreciation (419,835 ) (42,012 ) — 454,224 26,416 — |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Intangible Assets, Net [Abstract] | ||
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following: As of September 30, As of March 31, 2022 2023 Cost: Apartment rental contracts 55,967 3,001 Trademarks 16,294 — 72,261 3,001 Less: Accumulated amortization (58,786 ) (3,001 ) 13,475 — | Intangible assets, net consist of the following: As of September 30, 2,021 2,022 Cost: Apartment rental contracts 112,849 55,967 Trademarks 86,900 16,294 Software 2,275 — 202,024 72,261 Less: Accumulated amortization (49,560 ) (58,786 ) 152,464 13,475 |
Schedule of Amortization Expenses | The following table sets forth the Group’s amortization expenses for the five years since September 30, 2022: Amortization Year ending September 30, 2023 6,002 Year ending September 30, 2024 3,734 Year ending September 30, 2025 1,588 Year ending September 30, 2026 829 Year ending September 30, 2027 and thereafter 1,322 13,475 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt [Abstract] | |
Schedule of Short-term and Long-term Debt | The short-term and long-term debt were as follows: As of September 30, 2021 2022 Short-term debt: Short-term bank borrowings (1) 116,376 103,552 Long-term bank borrowings, current portion (1) 219,121 — Other short-term payable (2) 223,208 6,545 558,705 110,097 Long-term debt: Long-term bank borrowings, non-current portion (1) 175,534 — Other long term payable (2) 25,507 — 201,041 — 759,746 110,097 |
Operating Costs (Tables)
Operating Costs (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Operating Costs [Abstract] | |
Schedule of Operating Costs | Operating costs include all direct costs incurred in the operation of the leased properties. For the years ended September 30, 2020 2021 2022 Rental cost 813,773 642,354 539,487 Depreciation expenses 256,056 75,332 26,543 Personnel cost 77,392 224,125 144,926 Cost for value-added services and others 56,194 7,843 47 1,203,415 949,654 711,003 |
Asset Acquisition (Tables)
Asset Acquisition (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Asset Acquisition [Abstract] | |
Schedule of Asset Acquisition | The total consideration of RMB 495,039, after deducting the liabilities of RMB 349,665 assumed in the asset acquisition, was allocated to identify 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 Group (349,665 ) 495,039 |
Convertible Note, Net (Tables)
Convertible Note, Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Convertible Note, Net [Abstract] | |
Schedule of Warrants Activity | A summary of warrants activity for the years ended September 30, 2021 and 2021 was as follows: Number of Weighted Expiration Balance of warrants outstanding as of September 30, 2020 21,913 4.84 years Grants of Warrants on October 14, 2020 963 5 years October 14, 2025 Grants of Warrants on October 20, 2020 2,770 5 years October 20, 2025 Grants of Warrants on October 29, 2020 3,124 5 years October 29, 2025 Grants of Warrants on December 15, 2020 5,744 5 years December 15, 2025 Grants of Warrants on February 25, 2021 4,630 5 years February 25, 2026 Grants of Warrants on April 7, 2021 3,174 5 years April 7, 2026 Grants of Warrants on May 18, 2021 1,720 5 years May 18, 2026 Grants of Warrants on June 21, 2021 2,715 5 years June 21, 2026 Grants of Warrants on July 13, 2021 7,435 5 years July 13, 2026 Grants of Warrants on July 30, 2021 1,773 5 years July 30, 2026 Grants of Warrants on September 8, 2021 1,311 5 years September 8, 2026 Grants of Warrants on September 30, 2021 1,355 5 years September 30, 2026 Balance of warrants outstanding as of September 30, 2021 58,627 4.25 years Grants of Warrants on October 19, 2021 1,705 5 years October 19, 2026 Grants of Warrants on November 1, 2021 2,184 5 years November 1, 2026 Grants of Warrants on November 29, 2021 1,939 5 years November 29, 2026 Grants of Warrants on December 10, 2021 2,127 5 years December 10, 2026 Grants of Warrants on January 6, 2022 3,801 5 years January 6, 2027 Grants of Warrants on January 27, 2022 13,385 5 years January 27, 2027 Grants of Warrants on March 1, 2022 7,412 5 years March 1, 2027 Grants of Warrants on March 31, 2022 8,031 5 years March 31, 2027 Balance of warrants outstanding as of May 13, 2022 99,211 |
Schedule of Key Assumption used in Estimates of Warrants | The key assumption used in estimates are as follows: July 29, September 25, October 14, October 20, October 29, December 15, February 25, April 7, May 18, Terms of warrants 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months Exercise price 57.3090 51.1070 46.5205 43.3265 38.4150 25.8380 17.7090 16.6355 10.1560 Risk free rate of interest 0.21 % 0.21 % 0.29 % 0.29 % 0.29 % 0.28 % 0.58 % 0.61 % 0.69 % Dividend yield 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Annualized volatility of underlying stock 40.0 % 39.0 % 39.0 % 39.0 % 39.0 % 40.0 % 41.0 % 40.0 % 40.0 % June 21, July 13, July 30, September 8, September 30, Terms of warrants 60 months 60 months 60 months 60 months 60 months Exercise price 10.1560 8.0360 8.0360 5.9720 5.9720 Risk free rate of interest 0.69 % 0.52 % 0.52 % 0.76 % 0.76 % Dividend yield 0.00 0.00 0.00 0.00 0.00 Annualized volatility of underlying stock 40.0 % 40.0 % 40.0 % 40.0 % 40.0 % October 11, November 1, November 11, December 10, January 6, January 27, March 1, March 31, Terms of warrants 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months Exercise price 4.5744 4.2757 4.0013 3.5739 3.2626 2.8391 2.5636 2.3658 Risk free rate of interest 1.17 % 1.24 % 1.24 % 1.55 % 1.55 % 1.55 % 1.96 % 1.96 % Dividend yield 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Annualized volatility of underlying stock 40.9 % 40.8 % 40.8 % 41.5 % 41.5 % 41.5 % 42.2 % 42.2 % |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Schedule of Accrued Expenses and Other Current Liabilities | As of September 30, 2021 2022 Due to a rental service company (1) 603,884 — Tenant deposits 102,355 5,184 Payable to a constructor for leasehold improvements (2) 62,498 — Other tax payable 91,970 63,619 Interest payable 106,439 1,680 Accrued utilities 25,503 — Operation service payable 35,514 — Accrued payroll and welfare 4,471 3,999 Others 16,727 7,167 1,049,361 81,649 (1) As of September 30, 2021, the balance of due to a rental service company primarily represented a) 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, and b) Capital lease payable and other financing payables due to the rental service company. The Group 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 Group for costs incurred for the renovation. The Group then makes payments to the rental service company in instalments 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 Group. The Group accounts for this arrangement with the rental service company as a capital lease. The Group terminated cooperation with the rental service company, and the Group reclassified the capital lease payable and other financing payable to the account of “Due to a rental service company”. During the year ended September 30, 2022, the Company deconsolidated subsidiaries of the VIE. As of September 30, 2022, the Company had no balance of due to a rental service company. (2) During the year ended September 30, 2022, the constructor claimed debts with the Court (Note 3), which allocated the proceeds to the constructor. As of September 30, 2022, the Company had no outstanding balance due to the constructor. | |
Schedule of Accrued Expenses and Other Current Liabilities | As of September 30, As of March 31, 2022 2023 Tenant deposits 5,184 21,432 Other tax payable 63,619 75,600 Interest payable 1,680 2,120 Accrued payroll and welfare 3,999 1,538 Others 7,167 3,180 81,649 103,870 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Schedule 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 | |
Schedule of Option Activity | A summary of option activity during the year ended September 30, 2022 is presented below: Number of Exercise Remaining Outstanding, as of September 30, 2021 34,200,000 2 4.96 Granted 122,360,108 — 10.00 Exercised (115,180,054 ) — 10.00 Forfeited (100,000 ) 2 4.83 Outstanding, as of September 30, 2022 41,280,054 2 5.44 Vested and exercisable as of September 30, 2022 37,690,027 2 4.51 Vested or expected to vest as of September 30, 2022 41,280,054 2 5.44 | |
Schedule of Share-based Compensation Expenses | For the years ended September 30, 2020, 2021 and 2022, the total share-based compensation expenses were comprised of the following: For the years ended September 30, 2020 2021 2022 Selling and marketing expenses 83 7 12 General and administrative expenses 15,596 15,991 9,737 Research and development expenses 366 (192 ) 22 16,045 15,806 9,771 | |
Schedule of 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 | |
Schedule of Share Based Compensation Expenses | For the six months ended March 31, 2022 and 2023, the total share-based compensation expenses were comprised of the following: For the Six Months Ended 2022 2023 Selling and marketing expenses 2 12 General and administrative expenses 4 2,273 Research and development expenses 393 22 399 2,307 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Loss Per Share [Abstract] | ||
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the periods indicated: For the Six Months Ended 2022 2023 Net loss (243,224 ) (43,325 ) Net loss per share—Basic and diluted (0.14 ) (0.00 ) Weighted average number of ordinary shares used in computing net loss per share—Basic and diluted 1,728,612,425 27,715,937,039 | The following table sets forth the computation of basic and diluted earnings per share for the years indicated: For the years ended September 30, 2020 2021 2022 Numerator: Net (loss) income attributable to FLJ Group Limited’s ordinary shareholders (1,533,592 ) (569,174 ) 820,023 Denominator: Weighted average ordinary shares outstanding—basic and diluted 1,351,127,462 1,460,692,909 10,258,424,457 Net loss per share—basic and diluted (1.14 ) (0.39 ) 0.08 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Taxes [Abstract] | |
Schedule of Tax Benefits | Tax benefits is comprised of the following: For the years ended September 30, 2020 2021 2022 Current tax income 13 31 21 Deferred tax expenses — — — 13 31 21 |
Schedule of Reconciliation Between the Effective Income Tax Rate and the 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, 2020 2021 2022 PRC statutory tax rate 25 % 25.0 % 25.0 % Effect of different tax rates of group entities operating in other jurisdictions and preferential tax rates of group entities 0.5 % (5.0 )% 14.8 % Effect of other expenses that are not deductible in determining taxable profit — (0.9 )% 0.3 % Effect of gain from deconsolidation — — (52.9 )% Effect of share-based compensation (0.3 )% (0.7 )% 0.3 % Effect of loss on disposal of long-term assets (7.6 )% (2.0 )% 0.4 % Effect of change in valuation allowance (17.6 )% (16.4 )% 12.1 % (0.0 )% (0.0 )% (0.0 )% |
Schedule of Principal Components of the Group’s Deferred Income Tax Assets | The principal components of the Group’s deferred income tax assets as of September 30, 2021 and 2022 are as follows: As of September 30, 2021 2022 Deferred tax assets: Net losses carry forwards 215,193 109,940 Impairment loss on long-term assets 313,668 338,707 Allowance of doubtful accounts 37,668 39,136 Other accrued expenses 22,746 22,746 Advertising expenses 12,592 12,592 Valuation allowance (601,867 ) (523,121 ) — — |
Schedule of Movement of the Valuation Allowance | Movement of the valuation allowance is as follows: Balance as of September 30, 2019 338,964 Addition 280,958 Write off — Balance as of September 30, 2020 619,922 Addition 94,809 Write off (112,864 ) Balance as of September 30, 2021 601,867 Addition 99,230 Write off (177,976 ) Balance as of September 30, 2022 523,121 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Related Party Transactions and Balances [Abstract] | ||
Schedule of Financial Support to these Related Party | The Group is not obligated to provide any type of financial support to these related parties. Related Party Relationship with the Group Wangxiancai Limited* An entity controlled by the legal representative and executive director of one of the subsidiaries Key Space (S) Pte Ltd (“Key Space”) An entity controlled by certain shareholders of the Group * Wangxiancai Limited was no longer a related party of the Company since June 30, 2022 when the Company disposed of the Deconsolidated VIE’s Subsidiaries. | The Group is not obligated to provide any type of financial support to these related parties. Related Party Relationship with the Group Shanghai Laiguan Property Management Co., Ltd. (“Laiguan”) (i) An entity controlled by certain shareholders of the Group Shanghai Qingji Property Management Co., Ltd. (“Qingji”) (i) An entity controlled by certain shareholders of the Group Wangxiancai Limited An entity controlled by the legal representative and executive director of one of the subsidiaries Key Space (S) Pte Ltd (“Key Space”) An entity controlled by certain shareholders of the Group Mr. Qu Chengcai Chief Executive Officer Mr. Sun Zhichen Chief Financial Officer (i) Laiguan and Qingji ceased to be a related party of the Group in January 2021. |
Schedule of Financial Support to these Related Party | The balance due to related parties represented borrowings from the related parties which were due within 12 months from borrowing. Details are as follows: As of September 30, As of March 31, 2022 2023 Key Space 4,065 4,065 Others 766 1,329 4,831 5,394 | For the years ended September 30, 2020, 2021 and 2022, services provided by the related parties were as follows : For the years ended September 30, 2020 2021 2022 Labor outsourcing service expense to Laiguan 25,059 — — Labor outsourcing service expense to Qingji. 22,405 — — 47,464 — — As of September 30, 2021 2022 Others 201 — 201 — As of September 30, 2021 2022 Key Space — 4,065 Others — 766 — 4,831 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-cancellable Operating Lease Agreements | 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 operating lease agreements at September 30, 2022 were as follows: For the years ending September 30, 2023 339,513 2024 211,216 2025 81,947 2026 34,447 2027 and thereafter 37,905 Total 705,028 |
Events (Unaudited) Occurred A_2
Events (Unaudited) Occurred After the Report Date (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Events Unaudited Occurred After The Report Date Abstract | |
Schedule of Unaudited Pro Forma Combined Balance Sheet | As of September 30, 2022 Pro Forma Other Company Alpha Mind Adjustments Adjustments Pro Forma USD’000 USD’000 USD’000 USD’000 ASSETS Current Assets Cash and cash equivalents $ 390 $ 342 $ - $ (311 ) $ 421 Restricted Cash 15 - - (15 ) - Accounts receivable, net 106 2,893 - (106 ) 2,893 Prepayments 1,195 1,412 - (195 ) 2,412 Amount due from related parties - 21 - - 21 Short-term Investment - 273 - - 273 Other Current Assets 8,298 132 - (8,298 ) 132 Current assets of discontinued operations - - - 8,925 8,925 Total Current Assets 10,004 5,073 - - 15,077 Non-current Assets Restricted Cash- non-current 1,464 718 - (1,464 ) 718 Property and equipment, net 70 69 - (70 ) 69 Intangible assets, net 1,894 - - (1,894 ) - Deferred tax assets - 25 - - 25 Goodwill - - 177,635 - 177,635 Long-term assets of discontinued operations - - 3,428 3,428 Total assets $ 13,432 $ 5,885 $ 177,635 $ - $ 196,952 LIABILITIES AND STOCKHOLDERS’ EQUITY LIABILITIES Accounts payable $ 17,244 $ 2,497 $ - $ (17,244 ) $ 2,497 Advance from customer 18,265 5 - (18,265 ) 5 Short-term debt 15,477 - - (14,557 ) 920 Rental instalment loans 2,215 - - (2,215 ) - Amount due to related parties 679 17 - (107 ) 589 Deposits from tenants 5,404 - - (5,404 ) - Contingent liabilities for payable for asset acquisition 23,200 - - - 23,200 Accrued expenses and other current liabilities 11,480 1,001 - (10,994 ) 1,487 Notes payable - - 180,000 - 180,000 Current liabilities of discontinued operations - - - 68,786 68,786 Total Current Liabilities 93,964 3,520 180,000 - 277,484 Total Liabilities 93,964 3,520 180,000 - 277,484 Commitments and Contingencies SHAREHOLDERS’ EQUITY Class A Ordinary shares 243 - - 243 Additional paid-in capital 415,355 8,649 (8,649 ) 415,355 Stock subscription receivable - - - - Accumulated deficit (500,270 ) (5,636 ) 5,636 (500,270 ) Accumulated other comprehensive income (loss) 4,140 (648 ) 648 4,140 Total Shareholders’ Deficit (80,532 ) 2,365 (2,365 ) - (80,532 ) Total Liabilities, Mezzanine Equity and Shareholders’ Deficit $ 13,432 5,885 177,635 - 196,952 |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Short-Term Debt [Abstract] | |
Schedule of Short-Term Debt | The short-term debts were as follows: As of September 30, As of March 31, 2022 2023 Short-term bank borrowings 103,552 103,552 Other short-term payable (1) 6,545 32,072 110,097 135,624 (1) During the six months ended March 31, 2023, the Company entered into loan agreements with certain third parties to borrow an aggregation of RMB 25,527 (equivalent of US$3,750). The loans bore an interest rate of 3.85% per annum and payable in twelve months. |
Operating Lease (Tables)
Operating Lease (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Operating Lease [Abstract] | |
Schedule of Operating Lease Assets and Liabilities Recorded on Consolidated Balance Sheets and Other Information | The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets. As of September 30, As of March 31, 2022 2023 Right of use assets — 417,556 Operating lease liabilities, current — 228,655 Operating lease liabilities, noncurrent — 188,901 Total operating lease liabilities — 417,556 |
Schedule of Other Information about the Company’s Leases | Other information about the Company’s leases is as follows: For the Six Months Ended 2022 2023 Weighted average remaining lease term (years) — 2.36 Weighted average discount rate — 4.47 % |
Schedule of Schedule, by Years, of Maturities of Lease Liabilities | The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2023: March 31, 2023 For the six months ending September 30, 2023 136,507 For the year ending September 30, 2024 175,537 For the year ending September 30, 2025 72,950 For the year ending September 30, 2026 26,765 For the year ending September 30, 2027 14,500 For the year ending September 30, 2028 and thereafter 17,968 Total lease payments 444,227 Less: Imputed interest (26,671 ) Present value of lease liabilities 417,556 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | |
Organization and Principal Activities [Line Items] | ||||||||
Operating revenue | ¥ 199,670 | $ 29,075 | ¥ 364,214 | ¥ 652,333 | $ 91,703 | ¥ 1,036,206 | ¥ 1,207,963 | |
Net loss | $ (43,325) | $ (243,224) | 820,023 | 115,275 | (569,174) | (1,533,592) | ||
Gains from deconsolidation of VIE's subsidiaries | 1,554,450 | $ 218,521 | ||||||
Ads [Member] | ||||||||
Organization and Principal Activities [Line Items] | ||||||||
Reverse ADS split description | Effective on March 7, 2022, the Group changed the ratio of the American depositary shares (“ADSs”) representing its Class A ordinary shares from one (1) ADS representing thirty (30) Class A ordinary share to one (1) ADS representing one hundred and fifty (150) Class A ordinary shares. For the ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split. There will be no change to the Group’s Class A ordinary shares. The exchange of every five (5) then-held (old) ADSs for one (1) new ADS will occur automatically with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank, in each case as of the effective date for the ADS ratio change. No fractional new ADSs will be issued in connection with the change in the ADS ratio. | Effective on March 7, 2022, the Group changed the ratio of the American depositary shares (“ADSs”) representing its Class A ordinary shares from one (1) ADS representing thirty (30) Class A ordinary share to one (1) ADS representing one hundred and fifty (150) Class A ordinary shares. For the ADS holders, the change in the ADS ratio will have the same effect as a one-for-five reverse ADS split. There will be no change to the Group’s Class A ordinary shares. The exchange of every five (5) then-held (old) ADSs for one (1) new ADS will occur automatically with the then-held ADSs being cancelled and new ADSs being issued by the depositary bank, in each case as of the effective date for the ADS ratio change. No fractional new ADSs will be issued in connection with the change in the ADS ratio. | ||||||
Vairable Interest Entity Subsidiaries [Member] | ||||||||
Organization and Principal Activities [Line Items] | ||||||||
Operating revenue | ¥ 1,635 | |||||||
Percentage of consolidated revenues | 0.20% | 0.20% | ||||||
Net loss | ¥ 40,902 | |||||||
Percentage of consolidated net income | 5% | 5% | ||||||
Deficit of Deconsolidated | ¥ 2,231,140 | |||||||
Write off investments | 500,000 | |||||||
Waived amounts due from deconsolidated | 176,690 | |||||||
Gains from deconsolidation of VIE's subsidiaries | 1,554,450 | |||||||
Q&K HK, Q&K Investment Consulting and Q&K E-commerce [Member] | ||||||||
Organization and Principal Activities [Line Items] | ||||||||
Operating revenue | ¥ 1,635 | |||||||
Percentage of consolidated revenues | 0.30% | 0.30% | ||||||
Net loss | ¥ 43,940 | |||||||
Percentage of consolidated net income | 5% | 5% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Significant Subsidiaries and VIE | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Subsidiaries [Member] | QK365.com INC. (BVI) [Member] | ||
Subsidiaries: | ||
Date of incorporation | Sep. 29, 2014 | Sep. 29, 2014 |
Place of incorporation | BVI | BVI |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding | Holding |
Subsidiaries [Member] | Fenglinju (China) Hong Kong Limited (Fenglinju) [Member] | ||
Subsidiaries: | ||
Date of incorporation | Oct. 21, 2021 | Oct. 21, 2021 |
Place of incorporation | Hong Kong | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding | Holding |
Subsidiaries [Member] | Haoju(shanghai) Artificial Intelligence Technology Co., Ltd (formerly known as Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd.) (Q&K AI) [Member] | ||
Subsidiaries: | ||
Date of incorporation | May 13, 2019 | May 13, 2019 |
Place of incorporation | PRC | PRC |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding and Operating | Holding and Operating |
Subsidiaries [Member] | Chengdu Liwu Apartment Management Co Ltd [Member] | ||
Subsidiaries: | ||
Date of incorporation | Jun. 19, 2020 | Jun. 19, 2020 |
Place of incorporation | PRC | PRC |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Operating | Operating |
Variable Interest Entity, Primary Beneficiary [Member] | QingKe (China) Limited (Q&K HK) [Member] | ||
Subsidiaries: | ||
Date of incorporation | Jul. 07, 2014 | Jul. 07, 2014 |
Place of incorporation | Hong Kong | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding | Holding |
Variable Interest Entity, Primary Beneficiary [Member] | Q&K Investment Consulting Co., Ltd. (Q&K Investment Consulting) [Member] | ||
Subsidiaries: | ||
Date of incorporation | Apr. 02, 2015 | Apr. 02, 2015 |
Place of incorporation | PRC | PRC |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding and Operating | Holding and Operating |
Variable Interest Entity, Primary Beneficiary [Member] | Shanghai Qingke Ecommerce Co Ltd [Member] | ||
Subsidiaries: | ||
Date of incorporation | Aug. 02, 2013 | Aug. 02, 2013 |
Place of incorporation | PRC | PRC |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding and Operating | Holding and Operating |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Details) $ in Thousands | 6 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2023 CNY (¥) | Oct. 26, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) shares | Sep. 30, 2021 CNY (¥) shares | Jul. 22, 2020 | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Aug. 30, 2021 CNY (¥) | Sep. 30, 2022 CNY (¥) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 CNY (¥) shares | Sep. 30, 2020 CNY (¥) shares | Sep. 30, 2020 USD ($) shares | Mar. 31, 2023 USD ($) | Oct. 01, 2022 CNY (¥) | Sep. 30, 2022 USD ($) shares | |
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Accumulated deficits | ¥ (3,601,992,000) | ¥ (3,558,667,000) | ¥ (4,378,690,000) | ¥ (3,601,992,000) | ¥ (3,558,667,000) | ¥ (4,378,690,000) | $ (524,492) | $ (500,270) | ||||||||||
Net cash used in operating activities | (25,478,000) | $ (3,713) | ¥ (27,545,000) | (39,589,000) | $ (5,565) | (109,661,000) | ¥ 54,841,000 | |||||||||||
Working capital | 848,038,000 | 597,242,000 | 2,170,955,000 | ¥ 848,038,000 | 597,242,000 | 2,170,955,000 | ||||||||||||
Total amount of declared effective | ¥ 300,000,000 | |||||||||||||||||
Impairment charges | 199,575,000 | 846,766,000 | ||||||||||||||||
Rental incentives | 5,695,000 | 5,695,000 | 12,921,000 | |||||||||||||||
Approximately percentage | 5% | 5% | 5% | 5% | ||||||||||||||
Rental expenses | ¥ 100,962,000 | ¥ 539,487,000 | 642,354,000 | 813,773,000 | ||||||||||||||
Deferred rent current | ||||||||||||||||||
Deferred rent non-current | ||||||||||||||||||
Advertising expenses incurred | 10,773,000 | |||||||||||||||||
Total expenses | 1,349,000 | ¥ 3,383,000 | 18,283,000 | |||||||||||||||
Share issued (in Shares) | shares | 77,250,000 | 77,250,000 | ||||||||||||||||
Treasury Shares | ¥ 5,000 | |||||||||||||||||
Share based compensation expenses | ¥ 2,307,000 | ¥ 399,000 | 9,771,000 | $ 1,374 | ¥ 15,806,000 | 16,045,000 | ||||||||||||
Right-of-use assets | 417,556,000 | 417,556,000 | $ 60,801 | ¥ 627,000,000 | ||||||||||||||
Operating lease liabilities | ¥ 417,556,000 | 417,556,000 | ¥ 627,000,000 | |||||||||||||||
Net cash used in operating activities | ¥ 25,478,000 | |||||||||||||||||
Number of available rental units decreased, percentage | 48.50% | 48.50% | 48.50% | 48.50% | 48.50% | |||||||||||||
Costs and expenses | ¥ 242,357,000 | $ 35,291 | ¥ 553,262,000 | 896,204,000 | 125,988 | 1,435,869,000 | 2,708,740,000 | |||||||||||
Net loss | (43,325,000) | (6,309) | (243,224,000) | 819,980,000 | 115,269 | (569,202,000) | (1,533,641,000) | |||||||||||
Loss from operation decreased | (42,687,000) | (6,216) | (189,048,000) | (243,871,000) | (34,285) | (399,663,000) | (1,500,777,000) | |||||||||||
Impairment amount | 10,474,000 | $ 1,525 | ¥ 100,156,000 | 100,156,000 | $ 14,080 | 199,575,000 | 846,766,000 | |||||||||||
Impairment for right-of-use lease assets | ||||||||||||||||||
Convertible Notes Payable [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Issuance of convertible notes | ¥ 49,251,000 | |||||||||||||||||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Long-Term Revenue Growth Rate [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Fair value measurement | 3 | 3 | ||||||||||||||||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Fair value measurement | 11 | 11 | ||||||||||||||||
Trademarks [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Impairment charges | 70,606,000 | |||||||||||||||||
Trademarks [Member] | FLJ Group Ltd [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Impairment charges | 70,606,000 | |||||||||||||||||
Apartment Rental Contracts [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Impairment charges | 29,550,000 | |||||||||||||||||
Rental agreements percentage | 0% | 0% | 0% | 0% | ||||||||||||||
Rental fee percentage | 0% | 0% | ||||||||||||||||
Discount rate percentage | 11% | 11% | 11% | 11% | 11% | |||||||||||||
Apartment Rental Contracts [Member] | FLJ Group Ltd [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Impairment charges | 29,550,000 | |||||||||||||||||
Fair Value, Nonrecurring [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Impairment charges | ¥ 313,354,000 | |||||||||||||||||
Impairment charges | ¥ 199,575,000 | |||||||||||||||||
Fair Value, Nonrecurring [Member] | Trademarks [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Impairment charges | 108,071,000 | |||||||||||||||||
Fair Value, Nonrecurring [Member] | Apartment Rental Contracts [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Impairment charges | 425,341,000 | |||||||||||||||||
Rendering services [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Value added taxes | 6% | 6% | 6% | |||||||||||||||
Rental business [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Value added taxes | 9% | 9% | 9% | |||||||||||||||
Sales of goods, education surtax and urban maintenance and construction tax [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Value added taxes | 13% | 13% | 13% | |||||||||||||||
Rental Contracts [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Number of rental unit | 28,400 | 28,400 | 55,177 | 55,177 | 28,400 | |||||||||||||
Loss from operation decreased | ¥ 42,700,000 | ¥ 189,000,000 | ||||||||||||||||
Spousal Consent Letters [Member] | Shanghai Qingke Ecommerce Co Ltd [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Equity interest | 10.47% | 10.47% | ||||||||||||||||
Share Repurchase [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Cash payment | ¥ 248,859,000 | |||||||||||||||||
Share Repurchase [Member] | Common Stock [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Repurchased ordinary shares (in Shares) | shares | 77,250,000 | 77,250,000 | ||||||||||||||||
Share Repurchase [Member] | Convertible Notes Payable [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Issuance of convertible notes | $ | $ 7,232 | |||||||||||||||||
Great Alliance Co Living Limited And Affiliates [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Acquire assets | 72,000 | 72,000 | 72,000 | 72,000 | 72,000 | |||||||||||||
Rental agreements percentage | 3% | |||||||||||||||||
Rental fee percentage | 3% | |||||||||||||||||
Discount rate percentage | 11% | 11% | ||||||||||||||||
Great Alliance Co Living Limited And Affiliates [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Rental agreements percentage | 0% | 0% | 8% | 8% | 8% | |||||||||||||
Rental fee percentage | 0% | 0% | ||||||||||||||||
Discount rate percentage | 11% | 11% | 11% | 11% | 11% | 11% | ||||||||||||
Great Alliance Co Living Limited And Affiliates [Member] | Rental Contracts [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Acquire assets | 72,000 | |||||||||||||||||
Minimum [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Tax benefit | 50% | 50% | 50% | 50% | 50% | 50% | ||||||||||||
Minimum [Member] | Exclusive Technology Service Agreement [Member] | Shanghai Qingke Ecommerce Co Ltd [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Fees equivalent | 100% | 100% | ||||||||||||||||
Maximum [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Rental discount | ¥ 200,000 | |||||||||||||||||
Shanghai Huarui Bank [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Treasury shares (in Shares) | shares | 77,100,000 | 77,100,000 | 77,100,000 | |||||||||||||||
Shanghai Huarui Bank [Member] | Pledge With S H R B [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Treasury shares (in Shares) | shares | 77,100,000 | 77,100,000 | ||||||||||||||||
Covid nineteen [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Operating cost and expenses decreased, percentage | 56.20% | 56.20% | ||||||||||||||||
Costs and expenses | ¥ 242,400,000 | $ 35,300 | 553,300,000 | $ 87,300 | ||||||||||||||
Percentage of net loss | 82.20% | 82.20% | ||||||||||||||||
Net loss | ¥ 43,300,000 | $ 6,300 | 243,200,000 | $ 38,400 | ||||||||||||||
Tenants Who Prepay Rent Of At Lease First Six Months Of Lease Term [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Rental discount | 5% | 5% | ||||||||||||||||
Tenants Who Prepay Rent Of At Lease First Twelve Months Of Lease Term [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Rental discount | 10% | 10% | ||||||||||||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Net cash used in operating activities | ¥ 1,000 | $ 0 | ¥ (10,773,000) | ¥ (16,087,000) | $ (2,261) | ¥ (108,705,000) | ¥ 72,293,000 | |||||||||||
Percentage of revenues | 0.40% | 0.40% | 0.30% | 0.30% | 17% | 80% | 80% | |||||||||||
Percentage of total assets | 2% | 9% | 9% | 9% | 42% | |||||||||||||
Percentage of total liabilities | 7% | 12% | 12% | 12% | 57% | |||||||||||||
Net loss | ¥ (221,000) | $ (32) | ¥ (41,909,000) | ¥ (43,940,000) | $ (6,177) | ¥ (375,470,000) | ¥ (1,491,565,000) | |||||||||||
Leasehold Improvements [Member] | ||||||||||||||||||
Summary of Principal Accounting Policies (Details) [Line Items] | ||||||||||||||||||
Outstanding balances |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies (Details) - Schedule of Financial Statement Amounts and Balances of the VIE and its Subsidiaries - Variable Interest Entity, Primary Beneficiary [Member] ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
ASSETS | |||||||||
Cash and cash equivalents | ¥ 63 | ¥ 62 | ¥ 10,982 | $ 9 | $ 9 | ||||
Restricted cash | 2,893 | ||||||||
Accounts receivable | 370 | ||||||||
Prepaid rent and deposit | 571 | ||||||||
Advances to suppliers | 6,136 | 6,131 | 5,323 | 893 | 862 | ||||
Other current assets | 2,572 | 2,572 | 97,978 | 375 | 362 | ||||
Property and equipment, net | 38,940 | ||||||||
Intangible assets, net | 539 | ||||||||
Other assets | 98 | 98 | 108 | 14 | 14 | ||||
Total assets | 8,869 | 8,863 | 157,704 | 1,291 | 1,247 | ||||
LIABILITIES | |||||||||
Accounts payable | 34 | 34 | 281,458 | 5 | 5 | ||||
Deferred revenue | 16 | 16 | 1,125 | 2 | 2 | ||||
Short-term debt | 13,000 | 256,773 | 1,828 | ||||||
Rental instalment loans | 33 | ||||||||
Deposits from tenants | 1,422 | ||||||||
Accrued expenses and other current liabilities | 68,124 | 67,908 | 875,572 | 9,920 | 9,547 | ||||
Long-term debt | 201,041 | ||||||||
Total liabilities | 81,174 | 80,958 | 1,617,424 | $ 11,820 | $ 11,382 | ||||
Net revenues | ¥ 1,621 | 1,635 | $ 230 | 173,921 | ¥ 965,093 | ||||
Net loss | (221) | (32) | (41,909) | (43,940) | (6,177) | (375,470) | (1,491,565) | ||
Net cash provided by (used in) operating activities | 1 | 0 | (10,773) | (16,087) | (2,261) | (108,705) | 72,293 | ||
Net cash used in investing activities | (217) | (31) | (99,172) | ||||||
Net cash (used in) provided by financing activities | ¥ 2,267 | $ 319 | ¥ 98,466 | ¥ (95,948) |
Summary of Principal Accounti_5
Summary of Principal Accounting Policies (Details) - Schedule of Expected Useful Lives of Property and Equipment, Net | Sep. 30, 2022 |
Furniture, fixtures and equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 3 years |
Motor vehicles [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 4 years |
Summary of Principal Accounti_6
Summary of Principal Accounting Policies (Details) - Schedule of Estimated Useful Lives of Intangible Asset | 12 Months Ended |
Sep. 30, 2022 | |
Apartment Rental Contracts [Member] | |
Summary of Principal Accounting Policies (Details) - Schedule of Estimated Useful Lives of Intangible Asset [Line Items] | |
Intangible assets estimated useful lives | Shorter of the lease term or 8 years |
Trademarks [Member] | |
Summary of Principal Accounting Policies (Details) - Schedule of Estimated Useful Lives of Intangible Asset [Line Items] | |
Intangible assets estimated useful lives | 8 years |
Software [Member] | |
Summary of Principal Accounting Policies (Details) - Schedule of Estimated Useful Lives of Intangible Asset [Line Items] | |
Intangible assets estimated useful lives | 10 years |
Summary of Principal Accounti_7
Summary of Principal Accounting Policies (Details) - Schedule of Fair Value of Fnancial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis - CNY (¥) ¥ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Summary of Principal Accounting Policies (Details) - Schedule of Fair Value of Fnancial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis [Line Items] | ||
Contingent liabilities for payable for asset acquisition | ||
Fair Value, Recurring [Member] | ||
Summary of Principal Accounting Policies (Details) - Schedule of Fair Value of Fnancial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis [Line Items] | ||
Contingent liabilities for payable for asset acquisition | 165,033 | 164,254 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of Principal Accounting Policies (Details) - Schedule of Fair Value of Fnancial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis [Line Items] | ||
Contingent liabilities for payable for asset acquisition | 165,033 | 164,254 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of Principal Accounting Policies (Details) - Schedule of Fair Value of Fnancial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis [Line Items] | ||
Contingent liabilities for payable for asset acquisition | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of Principal Accounting Policies (Details) - Schedule of Fair Value of Fnancial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis [Line Items] | ||
Contingent liabilities for payable for asset acquisition |
Summary of Principal Accounti_8
Summary of Principal Accounting Policies (Details) - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Summary of Principal Accounting Policies (Details) - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis [Line Items] | ||
Property and equipment | $ 199,575 | |
Apartment rental agreements | $ 29,550 | |
Trademarks | 70,606 | |
Fair Value, Nonrecurring [Member] | ||
Summary of Principal Accounting Policies (Details) - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis [Line Items] | ||
Property and equipment | ||
Apartment rental agreements | 13,475 | 75,883 |
Trademarks | 76,038 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Summary of Principal Accounting Policies (Details) - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis [Line Items] | ||
Property and equipment | ||
Apartment rental agreements | ||
Trademarks | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Summary of Principal Accounting Policies (Details) - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis [Line Items] | ||
Property and equipment | ||
Apartment rental agreements | ||
Trademarks | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Summary of Principal Accounting Policies (Details) - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis [Line Items] | ||
Property and equipment | ||
Apartment rental agreements | 13,475 | 75,883 |
Trademarks | $ 76,038 |
Other Current Assets (Details)
Other Current Assets (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Other Current Assets [Abstract] | |||||
Proceeds from sale of buildings | ¥ 100,300 | ||||
Allocation of proceeds | ¥ 95,000 | ||||
Deconsolidated as part of the assets | 5,000 | ||||
Deposit | ¥ 20,602 | ¥ 21,341 | $ 3,000 | $ 3,000 | |
Company paid | ¥ 13,910 | ||||
Percentage of outstanding shares | 5% |
Other Current Assets (Details)
Other Current Assets (Details) - Schedule of Other Current Assets ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | ||||
Schedule of Other Current Assets [Abstract] | |||||||||
Receivable from sales of buildings under construction | [1] | ¥ 100,300 | |||||||
Due from a service provider | ¥ 37,552 | [2] | 36,100 | [2],[3] | 23,326 | [3] | |||
Deposit for share settlement | 20,602 | [4] | 21,341 | [4],[5] | 19,279 | [5] | |||
Others | 1,906 | 1,588 | 438 | ||||||
Total | ¥ 73,970 | $ 10,771 | ¥ 59,029 | $ 8,298 | ¥ 143,343 | ||||
[1]During the year ended September 30, 2021, the Group sold buildings under construction (See Note 4, Property and equipment, net |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||
Proceed of construction in progress | ¥ 100,300 | ||||||
Receivable from sales of buildings under construction | 100,300 | ||||||
Depreciation expense | ¥ 158 | ¥ 474 | ¥ 1,002 | 20,039 | ¥ 187,092 | ||
Impairment loss on property and equipment | 199,575 | 313,354 | |||||
Property and equipment, Net | ¥ 342 | 500 | 38,940 | $ 50 | $ 70 | ||
Loss from disposal from property and equipment | 19,448 | ¥ 454,224 | |||||
Other Current Assets [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Receivable from sales of buildings under construction | 100,300 | ||||||
Building and Building Improvements [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Sale of buildings under construction | ¥ 81,431 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) |
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | ¥ 3,191 | ¥ 3,191 | ¥ 63,666 | ||
Less: Accumulated depreciation | (2,849) | (2,691) | (24,726) | ||
Property, plant and equipment, net | 342 | $ 50 | 500 | $ 70 | 38,940 |
Buildings [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 40,167 | ||||
Vehicle [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 2,269 | 2,269 | 3,043 | ||
Office furniture, fixtures and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | ¥ 922 | ¥ 922 | ¥ 20,456 |
Property and Equipment, Net (_3
Property and Equipment, Net (Details) - Schedule of Disposed Property and Equipment - CNY (¥) ¥ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | |||
Disposed property and equipment, gross | ¥ 68,428 | ¥ 874,059 | |
Less: Accumulated depreciation | (42,012) | (419,835) | |
Disposed property and equipment, net | 26,416 | 454,224 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Disposed property and equipment, gross | 45,548 | 620,354 | |
Vehicle [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Disposed property and equipment, gross | 22,830 | 253,205 | |
Office furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Disposed property and equipment, gross | ¥ 50 | ¥ 500 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Jul. 22, 2020 | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | |
Intangible Assets, Net (Details) [Line Items] | ||||||||
Amortization expenses | ¥ 3,001 | ¥ 21,967 | ¥ 26,397 | ¥ 58,934 | ¥ 75,660 | |||
Impairment loss | 100,156 | 533,412 | ||||||
Impairment loss | 10,474 | $ 1,525 | 100,156 | 100,156 | $ 14,080 | 199,575 | 846,766 | |
Apartment Rental Contracts [Member] | ||||||||
Intangible Assets, Net (Details) [Line Items] | ||||||||
Impairment loss | ¥ 10,474 | ¥ 29,550 | 29,550 | |||||
Disposed of apartment rental contract | 11,972 | 10,725 | 14,756 | |||||
Loss from disposal of intangible assets | ¥ 11,972 | ¥ 10,725 | ¥ 14,756 | |||||
Percentage of revenue growth rate | 0% | 0% | 0% | |||||
Percentage of discount rate | 11% | 11% | 11% | |||||
Percentage of unit rental fee | 0% | 0% | ||||||
Great Alliance Co Living Limited And Affiliates [Member] | ||||||||
Intangible Assets, Net (Details) [Line Items] | ||||||||
Rental contracts and leasehold improvements | 72,000 | 72,000 | 72,000 | 72,000 | 72,000 | |||
Percentage of revenue growth rate | 3% | |||||||
Percentage of discount rate | 11% | |||||||
Percentage of unit rental fee | 3% |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Cost: | |||
Intangible assets, gross | ¥ 3,001 | ¥ 72,261 | ¥ 202,024 |
Less: Accumulated amortization | (3,001) | (58,786) | (49,560) |
Intangible assets, net | 13,475 | 152,464 | |
Apartment Rental Contracts [Member] | |||
Cost: | |||
Intangible assets, gross | 3,001 | 55,967 | 112,849 |
Trademarks [Member] | |||
Cost: | |||
Intangible assets, gross | 16,294 | 86,900 | |
Software [Member] | |||
Cost: | |||
Intangible assets, gross | ¥ 2,275 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Amortization Expenses - CNY (¥) ¥ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Amortization expenses | ||
Year ending September 30, 2023 | ¥ 6,002 | |
Year ending September 30, 2024 | 3,734 | |
Year ending September 30, 2025 | 1,588 | |
Year ending September 30, 2026 | 829 | |
Year ending September 30, 2027 and thereafter | 1,322 | |
Amortization expenses for the five years | ¥ 13,475 | ¥ 152,464 |
Debt (Details)
Debt (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
May 25, 2022 CNY (¥) shares | Dec. 17, 2020 CNY (¥) | May 28, 2020 CNY (¥) | Jun. 13, 2017 CNY (¥) | Jun. 30, 2022 shares | Dec. 31, 2020 CNY (¥) shares | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) shares | Sep. 30, 2020 CNY (¥) | Sep. 30, 2022 USD ($) | May 13, 2022 | Mar. 31, 2022 | Sep. 27, 2021 CNY (¥) | Nov. 30, 2020 CNY (¥) | Sep. 26, 2020 CNY (¥) | Jul. 31, 2020 CNY (¥) | Apr. 30, 2020 CNY (¥) | Feb. 21, 2019 CNY (¥) | |
Debt [Line Items] | |||||||||||||||||||||
Borrowed amount | ¥ 50,000,000 | ||||||||||||||||||||
Remaining balance interest rate | 7.50% | 7.50% | 5% | 8.75% | 5% | 7.50% | |||||||||||||||
Outstanding borrowings | ¥ 27,000,000 | ||||||||||||||||||||
Principal amount | ¥ 50,000,000 | ¥ 132,000,000 | ¥ 27,000,000 | ¥ 50,000,000 | |||||||||||||||||
Treasury shares (in Shares) | shares | 77,100,000 | 77,100,000 | 77,250,000 | ||||||||||||||||||
Remaining balance interest rate | 7.50% | ||||||||||||||||||||
Weighted average interest rate | 7.90% | 7.50% | 8.50% | ||||||||||||||||||
Maximum borrowing capacity | ¥ 91,400,000 | ¥ 108,000,000 | |||||||||||||||||||
Borrowing repaid amount | ¥ 90,400,000 | ||||||||||||||||||||
Borrowings | ¥ 50,000,000 | ¥ 25,527,000 | $ 3,750 | ||||||||||||||||||
Long-term debt | ¥ 201,041,000 | ||||||||||||||||||||
Loan referred treasury shares (in Shares) | shares | 77,250,000 | ||||||||||||||||||||
Debt extinguishment cost | ¥ (41,964,000) | ||||||||||||||||||||
Shares issued (in Shares) | shares | 77,250,000 | ||||||||||||||||||||
Inducement expense | ¥ 423,686,000 | $ 59,561 | |||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Remaining balance interest rate | 3.80% | 3.80% | 15% | ||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Remaining balance interest rate | 6% | 6% | 25% | 17% | |||||||||||||||||
Zhejiang M Y Bank [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Borrowed amount | ¥ 26,652,000 | ||||||||||||||||||||
Remaining balance interest rate | 8.50% | ||||||||||||||||||||
Interest expenses | ¥ 2,224,000 | ||||||||||||||||||||
Outstanding borrowings | ¥ 24,652,000 | ||||||||||||||||||||
Shanghai Huarui Bank [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Remaining balance interest rate | 7.50% | ||||||||||||||||||||
Treasury shares (in Shares) | shares | 77,100,000 | ||||||||||||||||||||
Maximum borrowing capacity | ¥ 2,000,000,000 | ||||||||||||||||||||
Rental instalment loans | ¥ 1,000,000,000 | ||||||||||||||||||||
China Merchants Bank [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Outstanding borrowings | ¥ 10,326,000 | ||||||||||||||||||||
Weighted average interest rate | 5.39% | 5.39% | |||||||||||||||||||
Borrowing repaid amount | ¥ 1,721,000 | ||||||||||||||||||||
Borrowings | ¥ 17,210,000 | ||||||||||||||||||||
Long-term debt | 8,605,000 | ||||||||||||||||||||
Bank borrowings deconsolidated | ¥ 10,326,000 | ||||||||||||||||||||
Third Party [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Outstanding borrowings | ¥ 217,477,000 | ||||||||||||||||||||
Total consideration | 392,104,000 | ||||||||||||||||||||
Interest | 24,665,000 | ||||||||||||||||||||
Inducement expense | ¥ 149,962,000 | ||||||||||||||||||||
Third Party [Member] | Class A Ordinary Shares [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Shares issued (in Shares) | shares | 8,617,124,250 | ||||||||||||||||||||
Borrowing Agreement [Member] | Zhejiang M Y Bank [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Interest expenses | ¥ 400,000 | ||||||||||||||||||||
18-Month ank loan [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Outstanding borrowings | 50,000,000 | ||||||||||||||||||||
18-Month ank loan [Member] | Zhejiang M Y Bank [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Bank borrowing outstanding balance | ¥ 24,652,000 | ||||||||||||||||||||
Bank Borrowing Agreement One [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Principal amount | ¥ 25,929,000 | ||||||||||||||||||||
Bank Borrowing Agreement Two [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Principal amount | ¥ 9,000,000 | ||||||||||||||||||||
Bank Borrowings [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Outstanding borrowings | 193,929,000 | ||||||||||||||||||||
Group Borrowed [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Outstanding borrowings | 50,000,000 | ||||||||||||||||||||
Buildings [Member] | |||||||||||||||||||||
Debt [Line Items] | |||||||||||||||||||||
Net carrying value of the collateralized buildings | ¥ 33,626,000 |
Debt (Details) - Schedule of Sh
Debt (Details) - Schedule of Short-term and Long-term Debt ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Short-term debt: | |||||
Short-term bank borrowings | ¥ 103,552 | ¥ 116,376 | |||
Long-term bank borrowings, current portion | 219,121 | ||||
Other short-term payable | 6,545 | 223,208 | |||
Short-term debt | 110,097 | 558,705 | ¥ 135,624 | $ 19,748 | $ 15,477 |
Long-term debt: | |||||
Long-term bank borrowings, non-current portion | 175,534 | ||||
Other long term payable | 25,507 | ||||
Long-term debt | 201,041 | ||||
Short-term and long-term debt | ¥ 110,097 | ¥ 759,746 |
Operating Costs (Details) - Sch
Operating Costs (Details) - Schedule of Operating Costs ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | |
Schedule of Operating Costs [Abstract] | |||||||
Rental cost | ¥ 539,487 | ¥ 642,354 | ¥ 813,773 | ||||
Depreciation expenses | 26,543 | 75,332 | 256,056 | ||||
Personnel cost | 144,926 | 224,125 | 77,392 | ||||
Cost for value-added services and others | 47 | 7,843 | 56,194 | ||||
Operating costs, total | ¥ 217,295 | $ 31,642 | ¥ 405,661 | ¥ 711,003 | $ 99,952 | ¥ 949,654 | ¥ 1,203,415 |
Asset Acquisition (Details)
Asset Acquisition (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Jul. 22, 2020 CNY (¥) shares | Jul. 22, 2020 USD ($) shares | May 31, 2021 $ / shares shares | Mar. 31, 2023 CNY (¥) | Sep. 30, 2022 CNY (¥) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | Sep. 30, 2020 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2020 USD ($) | Jul. 22, 2020 USD ($) | |
Asset Acquisition (Details) [Line Items] | |||||||||||||
Cash consideration | ¥ 6,484 | ¥ 39,498 | |||||||||||
Remaining cash consideration | 165,808 | $ 23,200 | |||||||||||
Liability | ¥ 159,328 | ¥ 165,033 | ¥ 164,254 | $ 23,200 | $ 23,200 | ||||||||
Common Stock [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Ordinary shares subject to a make whole cash (in Shares) | 57,786,458 | 57,786,458 | |||||||||||
Cash settlement to provision (in Shares) | 20,860,749 | 20,860,749 | |||||||||||
Ordinary share classification (in Shares) | 57,786,458 | 57,786,458 | |||||||||||
Great Alliance Coliving Limited [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Acquire assets | 72,000 | 72,000 | 72,000 | 72,000 | 72,000 | ||||||||
Great Alliance Coliving Limited [Member] | Rental Contracts [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Acquire assets | 72,000 | 72,000 | |||||||||||
Beautiful House [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Liabilities | ¥ | ¥ 349,665 | ¥ 349,665 | |||||||||||
Cash consideration | 205,306 | $ 29,000 | |||||||||||
Share issued (in Shares) | 186,375,850 | ||||||||||||
Share consideration | ¥ 289,733 | $ 42,673 | 289,733 | ||||||||||
Cash consideration | 39,498 | $ 5,800 | |||||||||||
Transaction costs | ¥ | ¥ 0 | ||||||||||||
Rental agreement trademarks | ¥ | 649,733 | ||||||||||||
Consideration | ¥ | 194,971 | ||||||||||||
Consideration total | ¥ | ¥ 495,039 | ||||||||||||
Ordinary share delievered (in Shares) | 57,786,458 | ||||||||||||
Beautiful House [Member] | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty One [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Shares payable instalments percentage | 30% | 30% | |||||||||||
Beautiful House [Member] | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty Two [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Shares payable instalments percentage | 40% | 40% | |||||||||||
Beautiful House [Member] | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty Three [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Shares payable instalments percentage | 30% | 30% | |||||||||||
Beautiful House [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Rental agreement trademarks | ¥ | ¥ 289,591 | ||||||||||||
Consideration | ¥ | ¥ 86,900 | ||||||||||||
Beautiful House [Member] | Common Stock [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Share issued (in Shares) | 186,375,850 | ||||||||||||
Ordinary share delievered (in Shares) | 57,786,458 | ||||||||||||
Seller lower amount (in Dollars per share) | $ / shares | $ 0.4014 | ||||||||||||
Ordinary shares redemption (in Shares) | 20,860,749 | ||||||||||||
Redemption price per share (in Dollars per share) | $ / shares | $ 0.4015 | ||||||||||||
Beautiful House [Member] | Common Stock [Member] | Common Class A [Member] | |||||||||||||
Asset Acquisition (Details) [Line Items] | |||||||||||||
Share issued (in Shares) | 128,589,392 | 128,589,392 |
Asset Acquisition (Details) - S
Asset Acquisition (Details) - Schedule of Asset Acquisition - Beautiful House [Member] - CNY (¥) ¥ in Thousands | Sep. 30, 2022 | Jul. 22, 2020 |
Asset Acquisition [Line Items] | ||
Apartment rental agreements | ¥ 649,733 | |
Trademarks | 194,971 | |
Liabilities assumed by the Group | (349,665) | ¥ (349,665) |
Total | ¥ 495,039 |
Convertible Note, Net (Details)
Convertible Note, Net (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||||||||||||||
May 25, 2022 CNY (¥) shares | Jul. 22, 2020 CNY (¥) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 CNY (¥) | Sep. 30, 2020 USD ($) | Sep. 30, 2022 USD ($) $ / shares | May 13, 2022 CNY (¥) | May 13, 2022 USD ($) | Dec. 31, 2020 | May 28, 2020 | Apr. 30, 2020 | Jul. 31, 2017 $ / shares | Oct. 31, 2016 $ / shares | Apr. 30, 2016 $ / shares | |
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Debt warrant | 5 years | ||||||||||||||||||||
Ordinary share (in Shares) | shares | 15,414,467,400 | ||||||||||||||||||||
Convertible notes (in Yuan Renminbi) | ¥ 701,403 | ¥ 701,403 | |||||||||||||||||||
Accrued interest (in Yuan Renminbi) | 427,679 | ||||||||||||||||||||
Inducement expenses (in Yuan Renminbi) | ¥ 273,724 | ||||||||||||||||||||
Percentage of interest rate | 5% | 8.75% | 8.75% | 5% | 7.50% | 7.50% | 7.50% | ||||||||||||||
Percentage of closing price | 120% | 120% | |||||||||||||||||||
Percentage of issue price | 80% | 80% | |||||||||||||||||||
Price per share (in Dollars per share) | $ / shares | $ 0.05 | $ 0.04 | $ 0.03 | ||||||||||||||||||
Trading volume amount (in Dollars) | $ | $ 15,000 | ||||||||||||||||||||
Percentage of warrant purchase | 4% | 4% | |||||||||||||||||||
(in Yuan Renminbi) | ¥ 17,832 | ¥ 20,007 | $ 2,813 | ¥ 113,236 | ¥ 163,565 | ||||||||||||||||
Proceeds warrants (in Yuan Renminbi) | ¥ 1,420 | 1,420 | 546 | 6,564 | |||||||||||||||||
Accretion expenses (in Yuan Renminbi) | ¥ 1,222 | 172 | ¥ 1,988 | ¥ 214 | |||||||||||||||||
Maximum [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 17% | 17% | 6% | 6% | 25% | 25% | |||||||||||||||
(in Yuan Renminbi) | $ | $ 1,978 | $ 1,978 | $ 12,354 | $ 16,885 | |||||||||||||||||
Convertible Debt [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Debt amount | ¥ 100,000 | ||||||||||||||||||||
Debt term | 4 years | ||||||||||||||||||||
Warrants to Subscribe American Depository Shares [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Warrants expire years | 5 years | 5 years | |||||||||||||||||||
Weighted average price | 110% | 110% | |||||||||||||||||||
Series One Note [Member] | Convertible Debt [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Debt amount | ¥ 344,619 | $ 51,637 | |||||||||||||||||||
Notes Payable Series One [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 4% | 4% | |||||||||||||||||||
Notes Payable Series Two [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 6% | 6% | |||||||||||||||||||
Notes Payable Series3 [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 7% | 7% | |||||||||||||||||||
Notes Payable Series4 [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 8% | 8% | |||||||||||||||||||
Interest Payable in Cash Annually [Member] | Series One Note [Member] | Convertible Debt [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 7.50% | 7.50% | |||||||||||||||||||
Interest Payable in Cash Annually [Member] | Series Two Note [Member] | Convertible Debt [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 3.50% | 3.50% | |||||||||||||||||||
Interest Payable in Cash at Maturity [Member] | Series One Note [Member] | Convertible Debt [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 7.50% | 7.50% | |||||||||||||||||||
Interest Payable in Cash at Maturity [Member] | Series Two Note [Member] | Convertible Debt [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of interest rate | 13.50% | 13.50% | |||||||||||||||||||
Ads [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Percentage of trading day average | 75% | ||||||||||||||||||||
Offering value (in Dollars) | $ | $ 50,000 | ||||||||||||||||||||
Price per share (in Dollars per share) | $ / shares | $ 22 | ||||||||||||||||||||
July and September Convertible Notes [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Estimated fair value (in Yuan Renminbi) | ¥ 286,098 | ||||||||||||||||||||
(in Yuan Renminbi) | 6,052 | ||||||||||||||||||||
Proceeds warrants (in Yuan Renminbi) | 8,596 | ||||||||||||||||||||
Interest expense (in Yuan Renminbi) | ¥ 8,596 | ||||||||||||||||||||
July Convertible Notes [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Consideration term yields | 18.12% | 18.12% | |||||||||||||||||||
September Convertible Notes [Member] | |||||||||||||||||||||
Convertible Note, Net [Line Items] | |||||||||||||||||||||
Consideration term yields | 25.58% | 25.58% |
Convertible Note, Net (Detail_2
Convertible Note, Net (Details) - Schedule of Warrants Activity - shares | 7 Months Ended | 12 Months Ended | |
Jul. 22, 2020 | May 13, 2022 | Sep. 30, 2021 | |
Class of Warrant or Right [Line Items] | |||
Number of shares, Beginning balance | 58,627 | 21,913 | |
Weighted average life, Beginning balance | 4 years 3 months | 4 years 10 months 2 days | |
Weighted average life, Grants | 5 years | ||
Number of shares, Ending balance | 99,211 | 58,627 | |
Weighted average life, Ending balance | 4 years 3 months | ||
Grants of Warrants on October 14, 2020 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 963 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Oct. 14, 2025 | ||
Grants of Warrants on October 20, 2020 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 2,770 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Oct. 20, 2025 | ||
Grants of Warrants on October 29, 2020 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 3,124 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Oct. 29, 2025 | ||
Grants of Warrants on December 15, 2020 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 5,744 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Dec. 15, 2025 | ||
Grants of Warrants on February 25, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 4,630 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Feb. 25, 2026 | ||
Grants of Warrants on April 7, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 3,174 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Apr. 07, 2026 | ||
Grants of Warrants on May 18, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 1,720 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | May 18, 2026 | ||
Grants of Warrants on June 21, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 2,715 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jun. 21, 2026 | ||
Grants of Warrants on July 13, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 7,435 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jul. 13, 2026 | ||
Grants of Warrants on July 30, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 1,773 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jul. 30, 2026 | ||
Grants of Warrants on September 8, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 1,311 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Sep. 08, 2026 | ||
Grants of Warrants on September 30, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 1,355 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Sep. 30, 2026 | ||
Grants of Warrants on October 19, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 1,705 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Oct. 19, 2026 | ||
Grants of Warrants on November 1, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 2,184 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Nov. 01, 2026 | ||
Grants of Warrants on November 29, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 1,939 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Nov. 29, 2026 | ||
Grants of Warrants on December 10, 2021 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 2,127 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Dec. 10, 2026 | ||
Grants of Warrants on January 6, 2022 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 3,801 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jan. 06, 2027 | ||
Grants of Warrants on January 27, 2022 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 13,385 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jan. 27, 2027 | ||
Grants of Warrants on March 1, 2022 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 7,412 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Mar. 01, 2027 | ||
Grants of Warrants on March 31, 2022 [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of ADSs, Grants | 8,031 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Mar. 31, 2027 |
Convertible Note, Net (Detail_3
Convertible Note, Net (Details) - Schedule of Key Assumption used in Estimates of Warrants - $ / shares | Dec. 10, 2022 | Mar. 31, 2022 | Mar. 01, 2022 | Jan. 27, 2022 | Jan. 06, 2022 | Nov. 11, 2021 | Nov. 01, 2021 | Oct. 11, 2021 | Sep. 30, 2021 | Sep. 08, 2021 | Jul. 30, 2021 | Jul. 13, 2021 | Jun. 21, 2021 | Dec. 15, 2020 | Oct. 29, 2020 | Oct. 20, 2020 | Oct. 14, 2020 | Sep. 25, 2020 | Jul. 29, 2020 | May 18, 2020 | Apr. 07, 2020 | Feb. 25, 2020 |
Terms of warrants [Member] | ||||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||||||||||
Terms of warrants | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years | 60 years |
Exercise price [Member] | ||||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||||||||||
Exercise price (in Dollars per share) | $ 3.5739 | $ 2.3658 | $ 2.5636 | $ 2.8391 | $ 3.2626 | $ 4.0013 | $ 4.2757 | $ 4.5744 | $ 5.972 | $ 5.972 | $ 8.036 | $ 8.036 | $ 10.156 | $ 25.838 | $ 38.415 | $ 43.3265 | $ 46.5205 | $ 51.107 | $ 57.309 | $ 10.156 | $ 16.6355 | $ 17.709 |
Risk free rate of interest [Member] | ||||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||||||||||
Risk free rate of interest | 1.55% | 1.96% | 1.96% | 1.55% | 1.55% | 1.24% | 1.24% | 1.17% | 0.76% | 0.76% | 0.52% | 0.52% | 0.69% | 0.28% | 0.29% | 0.29% | 0.29% | 0.21% | 0.21% | 0.69% | 0.61% | 0.58% |
Dividend yield [Member] | ||||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||||||||||
Dividend yield | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Annualized volatility of underlying stock [Member] | ||||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||||||||||
Annualized volatility of underlying stock | 41.50% | 42.20% | 42.20% | 41.50% | 41.50% | 40.80% | 40.80% | 40.90% | 40% | 40% | 40% | 40% | 40% | 40% | 39% | 39% | 39% | 39% | 40% | 40% | 40% | 41% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Accrued Expenses and Other Current Liabilities [Abstract] | ||||
Due to a rental service company | [1] | ¥ 603,884 | ||
Tenant deposits | ¥ 21,432 | 5,184 | 102,355 | |
Payable to a constructor for leasehold improvements | [2] | 62,498 | ||
Other tax payable | 75,600 | 63,619 | 91,970 | |
Interest payable | 2,120 | 1,680 | 106,439 | |
Accrued utilities | 25,503 | |||
Operation service payable | 35,514 | |||
Accrued payroll and welfare | 1,538 | 3,999 | 4,471 | |
Others | ¥ 3,180 | 7,167 | 16,727 | |
Total accrued expenses and other current liabilities | ¥ 81,649 | ¥ 1,049,361 | ||
[1]As of September 30, 2021, the balance of due to a rental service company primarily represented a) 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, and b) Capital lease payable and other financing payables due to the rental service company. The Group 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 Group for costs incurred for the renovation. The Group then makes payments to the rental service company in instalments 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 Group. The Group accounts for this arrangement with the rental service company as a capital lease. The Group terminated cooperation with the rental service company, and the Group reclassified the capital lease payable and other financing payable to the account of “Due to a rental service company”. During the year ended September 30, 2022, the Company deconsolidated subsidiaries of the VIE. As of September 30, 2022, the Company had no balance of due to a rental service company.[2]During the year ended September 30, 2022, the constructor claimed debts with the Court (Note 3), which allocated the proceeds to the constructor. As of September 30, 2022, the Company had no outstanding balance due to the constructor. |
Share-Based Compensation (Detai
Share-Based Compensation (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Aug. 03, 2023 shares | Aug. 03, 2022 shares | Oct. 18, 2016 ¥ / shares shares | Oct. 18, 2016 $ / shares shares | Jun. 30, 2022 ¥ / shares shares | Jun. 30, 2022 $ / shares shares | Jul. 31, 2017 ¥ / shares shares | Jul. 31, 2017 $ / shares shares | Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 CNY (¥) $ / shares shares | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) ¥ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 CNY (¥) shares | Sep. 30, 2020 CNY (¥) shares | Jun. 24, 2022 shares | |
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Number of share options | 26,860,000 | 122,360,108 | ||||||||||||||
Exercise price | ¥ / shares | ||||||||||||||||
Stock options vested and exercised | 115,180,054 | |||||||||||||||
Number of outstanding options | 41,280,054 | |||||||||||||||
Stock options exercisable | 37,690,027 | 37,690,027 | ||||||||||||||
Share options outstanding | 41,280,054 | 34,200,000 | ||||||||||||||
Recorded compensation expenses (in Yuan Renminbi) | ¥ | ¥ 9,771,000 | ¥ 15,806,000 | ¥ 16,045,000 | |||||||||||||
Compensation expenses for stock options (in Yuan Renminbi) | ¥ | ¥ 69,000 | |||||||||||||||
Outstanding options and the options expected to vest (in Yuan Renminbi) | ¥ | ||||||||||||||||
Share based compensation (in Yuan Renminbi) | ¥ | ¥ 2,307,000 | |||||||||||||||
Two Thousand Nineteen Share Incentive Plan [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Issued percentage | 10% | 10% | 10% | |||||||||||||
Yijia Inc [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Shares reserved | 86,000,000 | 86,000,000 | 86,000,000 | |||||||||||||
Common Class B [Member] | Yijia Inc [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Ordinary shares | 75,200,000 | |||||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Number of share options | 72,000,000 | 72,000,000 | ||||||||||||||
Exercise price | ¥ / shares | ||||||||||||||||
Stock Option A [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Stock options vested and exercised | 0 | |||||||||||||||
Number of outstanding options | 10,250,000 | 10,250,000 | 10,250,000 | 10,250,000 | ||||||||||||
Stock Option A [Member] | Maximum [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Transferring percentage | 25% | 25% | ||||||||||||||
Stock Option A [Member] | Management Employees And Non Employees [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Number of share options | 26,860,000 | 26,860,000 | ||||||||||||||
Exercise price | (per share) | ¥ 2 | $ 0.31 | ¥ 2 | ¥ 0.31 | ||||||||||||
Vests percentage | 50% | 50% | ||||||||||||||
Stock Option A [Member] | Common Class B [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Stock options exercisable | 10,250,000 | 10,250,000 | 10,250,000 | |||||||||||||
Stock Option B [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Compensation expenses for shares granted (in Yuan Renminbi) | ¥ | ¥ 0 | |||||||||||||||
Share options outstanding | 23,850,000 | 23,850,000 | 23,850,000 | 23,950,000 | ||||||||||||
Weighted average intrinsic value | ||||||||||||||||
Weighted average intrinsic value (in Yuan Renminbi) | ¥ | ||||||||||||||||
Stock Option B [Member] | Management And Employees [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Number of share options | 43,140,000 | 43,140,000 | ||||||||||||||
Exercise price | (per share) | ¥ 2 | $ 0.31 | ||||||||||||||
Stock Option B [Member] | Class A Ordinary Shares [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Stock options exercisable | 23,850,000 | 23,850,000 | 23,850,000 | |||||||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Stock options vested | 3,590,000 | 3,590,000 | ||||||||||||||
Recorded compensation expenses (in Yuan Renminbi) | ¥ | ¥ 9,771,000 | ¥ 1,236,000 | 16,045,000 | |||||||||||||
Compensation expenses for stock options (in Yuan Renminbi) | ¥ | 169,000 | |||||||||||||||
Share based compensation (in Yuan Renminbi) | ¥ | ¥ 399,000 | |||||||||||||||
Share-Based Payment Arrangement, Option [Member] | Chief Executive Officer [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Fair value per share (in Dollars per share) | $ / shares | $ 1.4537 | |||||||||||||||
Share-Based Payment Arrangement, Option [Member] | Chief Financial Officer [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Number of share options | 50,360,000 | 50,360,000 | ||||||||||||||
Exercise price | ¥ / shares | ||||||||||||||||
Stock options vested and exercised | 43,180,000 | 43,180,000 | ||||||||||||||
Fair value per share (in Dollars per share) | $ / shares | ¥ 1.4537 | |||||||||||||||
Stock options vested | 3,590,000 | 3,590,000 | 43,180,000 | 43,180,000 | ||||||||||||
Stock options, grant date fair value (in Dollars) | $ | $ 1.4537 | |||||||||||||||
Share-Based Payment Arrangement, Option [Member] | Chief Financial Officer [Member] | Rsu Two Thousand And Twenty Two [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Not exercised | 0 | |||||||||||||||
Share-Based Payment Arrangement, Option [Member] | Forecast [Member] | Chief Financial Officer [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Stock options vested | 3,590,000 | |||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Recorded compensation expenses (in Yuan Renminbi) | ¥ | ¥ 14,570,000 | |||||||||||||||
Compensation expenses for stock options (in Yuan Renminbi) | ¥ | ||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Consulting Company [Member] | Rsu Two Thousand And Twenty One [Member] | ||||||||||||||||
Share-Based Compensation (Details) [Line Items] | ||||||||||||||||
Not exercised | 25,000,000 | |||||||||||||||
Restricted share units, measurement date fair value (in Dollars per share) | $ / shares | $ 0.09 |
Share-Based Compensation (Det_2
Share-Based Compensation (Details) - Schedule of Assumptions Used to Estimate Fair Values of Share Options Granted - $ / shares | 1 Months Ended | ||
Jul. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2016 | |
Schedule of Assumptions Used to Estimate Fair Values of Share Options Granted [Abstract] | |||
Risk-free rate of return | 3.21% | 3.18% | 3.18% |
Contractual life of option | 8 years 4 months 24 days | 10 years | 10 years |
Estimated volatility rate | 35% | 37% | 37% |
Expected dividend yield | 0% | 0% | 0% |
Fair value of underlying ordinary shares (in Dollars per share) | $ 0.05 | $ 0.04 | $ 0.03 |
Share-Based Compensation (Det_3
Share-Based Compensation (Details) - Schedule of Option Activity - ¥ / shares | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Option Activity [Abstract] | |||
Number of Options, Outstanding Beginning balance | 41,280,054 | 34,200,000 | |
Exercise Price, Outstanding Beginning balance | ¥ 2 | ¥ 2 | |
Remaining Contractual Life, Outstanding Beginning balance | 4 years 11 months 15 days | ||
Number of Options, Granted | 26,860,000 | 122,360,108 | |
Remaining Contractual Life, Granted | 10 years | ||
Exercise Price, Granted | |||
Number of Options, Exercised | (115,180,054) | ||
Remaining Contractual Life, Exercised | 10 years | ||
Exercise Price, Exercised | |||
Number of Options, Forfeited | (100,000) | ||
Exercise Price, Forfeited | ¥ 2 | ||
Remaining Contractual Life, Forfeited | 4 years 9 months 29 days | ||
Number of Options, Outstanding Ending balance | 41,280,054 | ||
Exercise Price, Outstanding Ending balance | ¥ 2 | ||
Remaining Contractual Life, Outstanding Ending balance | 5 years 5 months 8 days | ||
Number of Options, Vested and exercisable | 37,690,027 | ||
Exercise Price, Vested and exercisable | ¥ 2 | ||
Remaining Contractual Life, Vested and exercisable | 4 years 6 months 3 days | ||
Number of Options, Vested or expected to vest | 41,280,054 | ||
Exercise Price, Vested or expected to vest | ¥ 2 | ||
Remaining Contractual Life, Vested or expected to vest | 5 years 5 months 8 days |
Share-Based Compensation (Det_4
Share-Based Compensation (Details) - Schedule of Share-based Compensation Expenses - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expenses | ¥ 9,771 | ¥ 15,806 | ¥ 16,045 |
Selling and Marketing Expense [Member] | |||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expenses | 12 | 7 | 83 |
General and Administrative Expense [Member] | |||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expenses | 9,737 | 15,991 | 15,596 |
Research and Development Expense [Member] | |||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expenses | ¥ 22 | ¥ (192) | ¥ 366 |
Loss Per Share (Details)
Loss Per Share (Details) - ¥ / shares | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Loss Per Share (Details) [Line Items] | |||||
Weighted average ordinary shares outstanding---basic | 27,715,937,039 | 1,728,612,425 | 10,258,424,457 | 1,460,692,909 | 1,351,127,462 |
Exercise of share | 37,690,027 | 34,200,000 | |||
Warrants purchase shares | 14,349,000 | ||||
Stock Options [Member] | |||||
Loss Per Share (Details) [Line Items] | |||||
Weighted average ordinary shares outstanding---basic | 3,590,027 | 3,590,027 | |||
Share options vested | 3,590,027 | 3,590,027 | |||
Exercise price of stock options exercisable (in Yuan Renminbi per share) | |||||
Diluted net loss per share | 37,690,027 | 34,200,000 | 41,750,000 | ||
Common Stock [Member] | |||||
Loss Per Share (Details) [Line Items] | |||||
Conversion shares | 364,641,420 | 0 | 7,452,445 | 2,789,720 |
Loss Per Share (Details) - Sche
Loss Per Share (Details) - Schedule of Computation of Basic and Diluted Earnings Per Share ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2023 ¥ / shares | Mar. 31, 2022 USD ($) shares | Mar. 31, 2022 ¥ / shares | Sep. 30, 2022 CNY (¥) ¥ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 CNY (¥) ¥ / shares shares | Sep. 30, 2020 CNY (¥) ¥ / shares shares | |
Numerator: | ||||||||
Net (loss) income attributable to FLJ Group Limited’s ordinary shareholders | $ (43,325) | $ (243,224) | ¥ 820,023 | $ 115,275 | ¥ (569,174) | ¥ (1,533,592) | ||
Denominator: | ||||||||
Weighted average ordinary shares outstanding—basic | 27,715,937,039 | 1,728,612,425 | 10,258,424,457 | 10,258,424,457 | 1,460,692,909 | 1,351,127,462 | ||
Net loss per share—basic | (per share) | $ 0 | ¥ 0 | ¥ (0.14) | ¥ 0.08 | $ 0.01 | ¥ (0.39) | ¥ (1.14) |
Loss Per Share (Details) - Sc_2
Loss Per Share (Details) - Schedule of Computation of Basic and Diluted Earnings Per Share (Parentheticals) | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 ¥ / shares shares | Mar. 31, 2023 $ / shares shares | Mar. 31, 2022 ¥ / shares shares | Mar. 31, 2022 $ / shares shares | Sep. 30, 2022 ¥ / shares shares | Sep. 30, 2022 $ / shares shares | Sep. 30, 2021 ¥ / shares shares | Sep. 30, 2020 ¥ / shares shares | |
Schedule of Computation of Basic and Diluted Earnings Per Share [Abstract] | ||||||||
Weighted average ordinary shares outstanding— diluted | 27,715,937,039 | 27,715,937,039 | 1,728,612,425 | 1,728,612,425 | 10,258,424,457 | 10,258,424,457 | 1,460,692,909 | 1,351,127,462 |
Net loss per share—diluted | (per share) | ¥ 0 | $ 0 | ¥ (0.14) | $ (0.14) | ¥ 0.08 | $ 0.01 | ¥ (0.39) | ¥ (1.14) |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 HKD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | Sep. 30, 2018 HKD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 HKD ($) | |
Income Taxes (Details) [Line Items] | |||||||||
Assessable profits (in Dollars) | $ | $ 2,000 | $ 2,000 | |||||||
Percentage of assessable profits | 5% | 5% | 8.25% | ||||||
Loss carryforwards | ¥ 439,563,000 | $ 300 | |||||||
Underpayment of income taxes is due | 3 years | 3 years | |||||||
Under special circumstances year | 5 years | 5 years | |||||||
Underpayment of income tax liability | ¥ 100,000 | ||||||||
Statue of limitations tax evasion | ¥ 0 | ||||||||
Withholding income tax | 10% | 10% | |||||||
Percentage of investor holds least | 25% | 25% | |||||||
Investor holds percentage | 10% | 10% | |||||||
Percentage of investor holds less than | 25% | 25% | |||||||
Unrecognized tax benefits | |||||||||
Current tax benefit | ¥ 3,000 | ¥ 21,000 | ¥ 31,000 | ¥ 13,000 | |||||
Underpayment of Income taxes statue percentage | 5 years | ||||||||
Underpayment of taxes amount | ¥ 100,000,000 | ||||||||
Statute of limitations years | 10 years | ||||||||
Minimum [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Tax benefit percentage | 50% | 50% | 50% | 50% | |||||
2023 [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Loss carryforwards | |||||||||
2024 [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Loss carryforwards | 143,592,000 | ||||||||
2025 [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Loss carryforwards | 24,556,000 | ||||||||
2026 [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Loss carryforwards | 21,168,000 | ||||||||
2027 [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Loss carryforwards | ¥ 250,247,000 | ||||||||
Internal Revenue Service (IRS) [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Percentage of assessable profits | 21% | 21% | |||||||
PRC [Member] | |||||||||
Income Taxes (Details) [Line Items] | |||||||||
Percentage of assessable profits | 25% | 25% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Tax Benefits ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | |
Schedule of Tax Expense [Abstract] | |||||||
Current tax income | ¥ 3 | ¥ 21 | ¥ 31 | ¥ 13 | |||
Deferred tax expenses | |||||||
Total | ¥ (3) | ¥ 21 | $ 3 | ¥ 31 | ¥ 13 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Reconciliation Between the Effective Income Tax Rate and the PRC Statutory Income Tax Rate | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Reconciliation Between Effective Income Tax Rate and Prc Statutory Income Tax Rate [Abstract] | |||
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 | 14.80% | (5.00%) | 0.50% |
Effect of other expenses that are not deductible in determining taxable profit | 0.30% | (0.90%) | |
Effect of gain from deconsolidation | (52.90%) | ||
Effect of share-based compensation | 0.30% | (0.70%) | (0.30%) |
Effect of loss on disposal of long-term assets | 0.40% | (2.00%) | (7.60%) |
Effect of change in valuation allowance | 12.10% | (16.40%) | (17.60%) |
Total | 0% | 0% | 0% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Principal Components of the Group’s Deferred Income Tax Assets - CNY (¥) ¥ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred tax assets: | ||||
Net losses carry forwards | ¥ 109,940 | ¥ 215,193 | ||
Impairment loss on long-term assets | 338,707 | 313,668 | ||
Allowance of doubtful accounts | 39,136 | 37,668 | ||
Other accrued expenses | 22,746 | 22,746 | ||
Advertising expenses | 12,592 | 12,592 | ||
Valuation allowance | ¥ (523,121) | ¥ (601,867) | ¥ (619,922) | ¥ (338,964) |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of Movement of the Valuation Allowance - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Movement of Valuation Allowance [Abstract] | |||
Beginning balance | ¥ 601,867 | ¥ 619,922 | ¥ 338,964 |
Addition | 99,230 | 94,809 | 280,958 |
Write off | (177,976) | (112,864) | |
Ending balance | ¥ 523,121 | ¥ 601,867 | ¥ 619,922 |
Statutory Reserves and Net Re_2
Statutory Reserves and Net Restricted Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2022 CNY (¥) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | |
Statutory Reserves and Net Restricted Assets (Details) [Line Items] | |||||
Percentage of statutory reserve | 10% | ||||
Percentage of registered capital | 50% | ||||
Restricted cash including reserves | ¥ 106 | ¥ 106 | $ 15 | $ 15 | ¥ 2,935 |
Additional Paid-in Capital [Member] | |||||
Statutory Reserves and Net Restricted Assets (Details) [Line Items] | |||||
Restricted cash including reserves | ¥ 10,000 | ¥ 1,754,615 |
Related Party Transactions an_3
Related Party Transactions and Balances (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 CNY (¥) | Sep. 30, 2020 USD ($) | Mar. 31, 2023 USD ($) | May 13, 2022 | Dec. 31, 2020 | May 28, 2020 | Apr. 30, 2020 | |
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Issuance of convertible notes in exchange for cash | ¥ 4,734 | $ 665 | |||||||||||||
Issued convertible notes in exchange for cash | ¥ 17,832 | ¥ 20,007 | 2,813 | ¥ 113,236 | ¥ 163,565 | ||||||||||
Interest rate | 5% | 8.75% | 7.50% | 7.50% | 7.50% | ||||||||||
Accrued interest expenses (in Yuan Renminbi) | ¥ | 2,120 | ¥ 1,680 | ¥ 106,439 | ||||||||||||
Due to related parties (in Yuan Renminbi) | ¥ 5,394 | ¥ 4,831 | $ 785 | ||||||||||||
Minimum [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Issued convertible notes in exchange for cash | $ | $ 835 | $ 835 | $ 5,220 | $ 7,133 | |||||||||||
Percentage of interest rate per annum | 15% | 15% | 15% | 15% | 15% | 15% | |||||||||
Interest rate | 15% | 3.80% | |||||||||||||
Maximum [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Issued convertible notes in exchange for cash | $ | 1,978 | $ 1,978 | $ 12,354 | $ 16,885 | |||||||||||
Percentage of interest rate per annum | 17% | 17% | 17% | 17% | 17% | 17% | |||||||||
Interest rate | 17% | 6% | 25% | ||||||||||||
Key Space [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Issued convertible notes in exchange for cash | ¥ 17,832 | $ 2,813 | |||||||||||||
Convertible Debt [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Accrued interest expense (in Yuan Renminbi) | ¥ | ¥ 13,094 | ¥ 49,512 | ¥ 4,365 | ||||||||||||
Convertible Notes [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Accrued interest expenses (in Yuan Renminbi) | ¥ | 26,870 | ||||||||||||||
Related Party [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Due to related parties (in Yuan Renminbi) | ¥ | ¥ 5,394 | 4,831 | |||||||||||||
Key Space [Member] | Convertible Debt [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Issuance of convertible notes in exchange for cash | ¥ 20,007 | $ 2,813 | ¥ 113,236 | $ 17,574 | ¥ 163,565 | $ 24,018 | |||||||||
Mr. Qu [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Issued convertible notes in exchange for cash | $ | 72,000 | ||||||||||||||
Mr. Sun [Member] | |||||||||||||||
Related Party Transactions and Balances (Details) [Line Items] | |||||||||||||||
Issued convertible notes in exchange for cash | $ | $ 43,180 |
Related Party Transactions an_4
Related Party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | |||
Shanghai Laiguan Property Management Co., Ltd. (“Laiguan”) [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party [Line Items] | ||||
Related Party | [1] | An entity controlled by certain shareholders of the Group | ||
Shanghai Qingji Property Management Co., Ltd. (“Qingji”) [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party [Line Items] | ||||
Related Party | [1] | An entity controlled by certain shareholders of the Group | ||
Wangxiancai Limited [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party [Line Items] | ||||
Related Party | An entity controlled by the legal representative and executive director of one of the subsidiaries | [2] | An entity controlled by the legal representative and executive director of one of the subsidiaries | |
Key Space (S) Pte Ltd (“Key Space”) [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party [Line Items] | ||||
Related Party | An entity controlled by certain shareholders of the Group | An entity controlled by certain shareholders of the Group | ||
Mr. Qu Chengcai [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party [Line Items] | ||||
Related Party | Chief Executive Officer | |||
Mr. Sun Zhichen [Member] | ||||
Related Party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party [Line Items] | ||||
Related Party | Chief Financial Officer | |||
[1]Laiguan and Qingji ceased to be a related party of the Group in January 2021.[2]Wangxiancai Limited was no longer a related party of the Company since June 30, 2022 when the Company disposed of the Deconsolidated VIE’s Subsidiaries. |
Related Party Transactions an_5
Related Party Transactions and Balances (Details) - Schedule of Transactions with Related Parties - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | |||
Labor outsourcing service expense | ¥ 47,464 | ||
Amounts due from related parties | 201 | ||
Borrowings from the related parties | 4,831 | ||
Labor outsourcing service expense to Laiguan [Member] | |||
Related Party Transaction [Line Items] | |||
Labor outsourcing service expense | 25,059 | ||
Labor outsourcing service expense to Qingji [Member] | |||
Related Party Transaction [Line Items] | |||
Labor outsourcing service expense | ¥ 22,405 | ||
Others [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from related parties | 201 | ||
Borrowings from the related parties | 766 | ||
Key Space [Member] | |||
Related Party Transaction [Line Items] | |||
Borrowings from the related parties | ¥ 4,065 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Schedule of Future Minimum Lease Payments under Non-cancellable Operating Lease Agreements ¥ in Thousands | Sep. 30, 2022 CNY (¥) |
Schedule of Future Minimum Lease Payments Under Non Cancellable Operating Lease Agreements [Abstract] | |
2023 | ¥ 339,513 |
2024 | 211,216 |
2025 | 81,947 |
2026 | 34,447 |
2027 and thereafter | 37,905 |
Total | ¥ 705,028 |
Subsequent Events (Details)
Subsequent Events (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Nov. 18, 2022 shares | Mar. 31, 2023 CNY (¥) shares | Sep. 30, 2022 CNY (¥) shares | Mar. 31, 2023 USD ($) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 CNY (¥) shares | ||||
Subsequent Events [Line Items] | |||||||||
Percentage of outstanding share capital | 5% | ||||||||
Service provider due balance | ¥ | ¥ 37,552 | [1] | ¥ 36,100 | [1],[2] | ¥ 23,326 | [2] | |||
Deposit amount | ¥ 20,602 | 21,341 | $ 3,000 | $ 3,000 | |||||
Contingent liabilities | ¥ | ¥ 119,186 | ||||||||
Class B Ordinary Shares [Member] | |||||||||
Subsequent Events [Line Items] | |||||||||
Voting rights | ten votes per share | ten votes per share | |||||||
Issuance of ordinary shares | 2,500,000,000 | 2,500,000,000 | 180,389,549 | ||||||
Class B Ordinary Shares [Member] | 2022 Plan [Member] | |||||||||
Subsequent Events [Line Items] | |||||||||
Issuance of maximum number of shares | 2,500,000,000 | ||||||||
Reserved ordinary shares | 2,500,000,000 | ||||||||
Issuance of ordinary shares | 0 | ||||||||
Class A Ordinary Shares [Member] | |||||||||
Subsequent Events [Line Items] | |||||||||
Voting rights | one vote per share | one vote per share | |||||||
Issuance of ordinary shares | 25,878,920,464 | 25,878,920,464 | 25,878,920,464 | 25,878,920,464 | 1,544,097,151 | ||||
Subsequent Event [Member] | |||||||||
Subsequent Events [Line Items] | |||||||||
Percentage of outstanding share capital | 8.80% | ||||||||
Percentage of voting power | 49.10% | ||||||||
Subsequent Event [Member] | Class B Ordinary Shares [Member] | 2022 Plan [Member] | |||||||||
Subsequent Events [Line Items] | |||||||||
Issuance of maximum number of shares | 2,500,000,000 | ||||||||
Reserved ordinary shares | 2,500,000,000 | ||||||||
Issuance of ordinary shares | 0 | ||||||||
[1]Upon asset acquisition with Beautiful House, the Group engaged a third party service provider to provide apartment operation services to the Group. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House. To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and loans are repayable on demand.[2]Upon asset acquisition with Beautiful House (Note 8), the Group engaged a third party service provider to provide apartment operation services to the Group. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House (Note 8). To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and the loans are repayable on demand. |
Events (Unaudited) Occurred A_3
Events (Unaudited) Occurred After the Report Date (Details) - Subsequent Event [Member] | Nov. 23, 2023 USD ($) |
Events (Unaudited) Occurred After the Report Date (Details) [Line Items] | |
Aggregate purchase price | $ 180,000,000 |
Maturity days | 90 |
Interest rate | 3% |
Events (Unaudited) Occurred A_4
Events (Unaudited) Occurred After the Report Date (Details) - Schedule of Unaudited Pro Forma Combined Balance Sheet $ in Thousands | Sep. 30, 2022 USD ($) |
Company Historical [Member] | |
Current Assets | |
Cash and cash equivalents | $ 390 |
Restricted Cash | 15 |
Accounts receivable, net | 106 |
Prepayments | 1,195 |
Amount due from related parties | |
Short-term Investment | |
Other Current Assets | 8,298 |
Current assets of discontinued operations | |
Total current assets | 10,004 |
Non-current Assets | |
Restricted Cash- non-current | 1,464 |
Property and equipment, net | 70 |
Intangible assets, net | 1,894 |
Deferred tax assets | |
Goodwill | |
Long-term assets of discontinued operations | |
Total assets | 13,432 |
LIABILITIES | |
Accounts payable | 17,244 |
Advance from customer | 18,265 |
Short-term debt | 15,477 |
Rental instalment loans | 2,215 |
Amount due to related parties | 679 |
Deposits from tenants | 5,404 |
Contingent liabilities for payable for asset acquisition | 23,200 |
Accrued expenses and other current liabilities | 11,480 |
Notes payable | |
Current liabilities of discontinued operations | |
Total current liabilities | 93,964 |
Total liabilities | 93,964 |
Commitments and Contingencies | |
SHAREHOLDERS’ EQUITY | |
Class A Ordinary shares | 243 |
Additional paid-in capital | 415,355 |
Stock subscription receivable | |
Accumulated deficit | (500,270) |
Accumulated other comprehensive income (loss) | 4,140 |
Total shareholders’ deficit | (80,532) |
Total liabilities and shareholders’ deficit | 13,432 |
Alpha Mind Historical [Member] | |
Current Assets | |
Cash and cash equivalents | 342 |
Restricted Cash | |
Accounts receivable, net | 2,893 |
Prepayments | 1,412 |
Amount due from related parties | 21 |
Short-term Investment | 273 |
Other Current Assets | 132 |
Current assets of discontinued operations | |
Total current assets | 5,073 |
Non-current Assets | |
Restricted Cash- non-current | 718 |
Property and equipment, net | 69 |
Intangible assets, net | |
Deferred tax assets | 25 |
Goodwill | |
Long-term assets of discontinued operations | |
Total assets | 5,885 |
LIABILITIES | |
Accounts payable | 2,497 |
Advance from customer | 5 |
Short-term debt | |
Rental instalment loans | |
Amount due to related parties | 17 |
Deposits from tenants | |
Contingent liabilities for payable for asset acquisition | |
Accrued expenses and other current liabilities | 1,001 |
Notes payable | |
Current liabilities of discontinued operations | |
Total current liabilities | 3,520 |
Total liabilities | 3,520 |
Commitments and Contingencies | |
SHAREHOLDERS’ EQUITY | |
Class A Ordinary shares | |
Additional paid-in capital | 8,649 |
Stock subscription receivable | |
Accumulated deficit | (5,636) |
Accumulated other comprehensive income (loss) | (648) |
Total shareholders’ deficit | 2,365 |
Total liabilities and shareholders’ deficit | 5,885 |
Pro Forma Adjustments [Member] | |
Current Assets | |
Cash and cash equivalents | |
Restricted Cash | |
Accounts receivable, net | |
Prepayments | |
Amount due from related parties | |
Short-term Investment | |
Other Current Assets | |
Current assets of discontinued operations | |
Total current assets | |
Non-current Assets | |
Restricted Cash- non-current | |
Property and equipment, net | |
Intangible assets, net | |
Deferred tax assets | |
Goodwill | 177,635 |
Total assets | 177,635 |
LIABILITIES | |
Accounts payable | |
Advance from customer | |
Short-term debt | |
Rental instalment loans | |
Amount due to related parties | |
Deposits from tenants | |
Contingent liabilities for payable for asset acquisition | |
Accrued expenses and other current liabilities | |
Notes payable | 180,000 |
Current liabilities of discontinued operations | |
Total current liabilities | 180,000 |
Total liabilities | 180,000 |
Commitments and Contingencies | |
SHAREHOLDERS’ EQUITY | |
Class A Ordinary shares | |
Additional paid-in capital | (8,649) |
Stock subscription receivable | |
Accumulated deficit | 5,636 |
Accumulated other comprehensive income (loss) | 648 |
Total shareholders’ deficit | (2,365) |
Total liabilities and shareholders’ deficit | 177,635 |
Other Adjustments [Member] | |
Current Assets | |
Cash and cash equivalents | (311) |
Restricted Cash | (15) |
Accounts receivable, net | (106) |
Prepayments | (195) |
Amount due from related parties | |
Short-term Investment | |
Other Current Assets | (8,298) |
Current assets of discontinued operations | 8,925 |
Total current assets | |
Non-current Assets | |
Restricted Cash- non-current | (1,464) |
Property and equipment, net | (70) |
Intangible assets, net | (1,894) |
Deferred tax assets | |
Goodwill | |
Long-term assets of discontinued operations | 3,428 |
Total assets | |
LIABILITIES | |
Accounts payable | (17,244) |
Advance from customer | (18,265) |
Short-term debt | (14,557) |
Rental instalment loans | (2,215) |
Amount due to related parties | (107) |
Deposits from tenants | (5,404) |
Contingent liabilities for payable for asset acquisition | |
Accrued expenses and other current liabilities | (10,994) |
Notes payable | |
Current liabilities of discontinued operations | 68,786 |
Total current liabilities | |
Total liabilities | |
Commitments and Contingencies | |
SHAREHOLDERS’ EQUITY | |
Total shareholders’ deficit | |
Total liabilities and shareholders’ deficit | |
Pro Forma Combined [Member] | |
Current Assets | |
Cash and cash equivalents | 421 |
Restricted Cash | |
Accounts receivable, net | 2,893 |
Prepayments | 2,412 |
Amount due from related parties | 21 |
Short-term Investment | 273 |
Other Current Assets | 132 |
Current assets of discontinued operations | 8,925 |
Total current assets | 15,077 |
Non-current Assets | |
Restricted Cash- non-current | 718 |
Property and equipment, net | 69 |
Intangible assets, net | |
Deferred tax assets | 25 |
Goodwill | 177,635 |
Long-term assets of discontinued operations | 3,428 |
Total assets | 196,952 |
LIABILITIES | |
Accounts payable | 2,497 |
Advance from customer | 5 |
Short-term debt | 920 |
Rental instalment loans | |
Amount due to related parties | 589 |
Deposits from tenants | |
Contingent liabilities for payable for asset acquisition | 23,200 |
Accrued expenses and other current liabilities | 1,487 |
Notes payable | 180,000 |
Current liabilities of discontinued operations | 68,786 |
Total current liabilities | 277,484 |
Total liabilities | 277,484 |
Commitments and Contingencies | |
SHAREHOLDERS’ EQUITY | |
Class A Ordinary shares | 243 |
Additional paid-in capital | 415,355 |
Stock subscription receivable | |
Accumulated deficit | (500,270) |
Accumulated other comprehensive income (loss) | 4,140 |
Total shareholders’ deficit | (80,532) |
Total liabilities and shareholders’ deficit | $ 196,952 |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of Significant Subsidiaries and VIE | 6 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Sep. 30, 2022 | |
Subsidiaries [Member] | QK365.com INC. (BVI) [Member] | ||
Subsidiaries: | ||
Date of incorporation | Sep. 29, 2014 | Sep. 29, 2014 |
Place of incorporation | BVI | BVI |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding | Holding |
Subsidiaries [Member] | Fenglinju (China) Hong Kong Limited (Fenglinju) [Member] | ||
Subsidiaries: | ||
Date of incorporation | Oct. 21, 2021 | Oct. 21, 2021 |
Place of incorporation | Hong Kong | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding | Holding |
Subsidiaries [Member] | Haoju(shanghai) Artificial Intelligence Technology Co., Ltd (formerly known as Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd.) (Q&K AI) [Member] | ||
Subsidiaries: | ||
Date of incorporation | May 13, 2019 | May 13, 2019 |
Place of incorporation | PRC | PRC |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding and Operating | Holding and Operating |
Subsidiaries [Member] | Chengdu Liwu Apartment Management Co Ltd [Member] | ||
Subsidiaries: | ||
Date of incorporation | Jun. 19, 2020 | Jun. 19, 2020 |
Place of incorporation | PRC | PRC |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Operating | Operating |
Variable Interest Entity, Primary Beneficiary [Member] | QingKe (China) Limited (Q&K HK) [Member] | ||
Subsidiaries: | ||
Date of incorporation | Jul. 07, 2014 | Jul. 07, 2014 |
Place of incorporation | Hong Kong | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding | Holding |
Variable Interest Entity, Primary Beneficiary [Member] | Q&K Investment Consulting Co., Ltd. (Q&K Investment Consulting) [Member] | ||
Subsidiaries: | ||
Date of incorporation | Apr. 02, 2015 | Apr. 02, 2015 |
Place of incorporation | PRC | PRC |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding and Operating | Holding and Operating |
Variable Interest Entity, Primary Beneficiary [Member] | Shanghai Qingke Ecommerce Co Ltd [Member] | ||
Subsidiaries: | ||
Date of incorporation | Aug. 02, 2013 | Aug. 02, 2013 |
Place of incorporation | PRC | PRC |
Percentage of legal/beneficial ownership by the Company | 100% | 100% |
Principal activities | Holding and Operating | Holding and Operating |
Summary of Principal Accounti_9
Summary of Principal Accounting Policies (Details) - Schedule of Financial Statement Amounts and Balances of the VIE and its Subsidiaries - Variable Interest Entity, Primary Beneficiary [Member] ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
ASSETS | |||||||||
Cash and cash equivalents | ¥ 63 | ¥ 62 | ¥ 10,982 | $ 9 | $ 9 | ||||
Advances to suppliers | 6,136 | 6,131 | 5,323 | 893 | 862 | ||||
Other current assets | 2,572 | 2,572 | 97,978 | 375 | 362 | ||||
Other assets | 98 | 98 | 108 | 14 | 14 | ||||
Total assets | 8,869 | 8,863 | 157,704 | 1,291 | 1,247 | ||||
LIABILITIES | |||||||||
Accounts payable | 34 | 34 | 281,458 | 5 | 5 | ||||
Deferred revenue | 16 | 16 | 1,125 | 2 | 2 | ||||
Short-term debt | 13,000 | 13,000 | 1,893 | ||||||
Accrued expenses and other current liabilities | 68,124 | 67,908 | 875,572 | 9,920 | 9,547 | ||||
Total liabilities | 81,174 | 80,958 | 1,617,424 | $ 11,820 | $ 11,382 | ||||
Net revenues | ¥ 1,621 | 1,635 | $ 230 | 173,921 | ¥ 965,093 | ||||
Net loss | (221) | (32) | (41,909) | (43,940) | (6,177) | (375,470) | (1,491,565) | ||
Net cash used in operating activities | 1 | 0 | (10,773) | (16,087) | (2,261) | (108,705) | 72,293 | ||
Net cash provided by investing activities | (217) | (31) | (99,172) | ||||||
Net cash provided by financing activities | ¥ 2,267 | $ 319 | ¥ 98,466 | ¥ (95,948) |
Other Current Assets (Details_2
Other Current Assets (Details) - Schedule of Other Current Assets ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | ||||
Schedule of Other Current Assets [Abstract] | |||||||||
Due from a service provider | ¥ 37,552 | [1] | ¥ 36,100 | [1],[2] | ¥ 23,326 | [2] | |||
Deposit for share settlement | 20,602 | [3] | 21,341 | [3],[4] | 19,279 | [4] | |||
Due from shareholders | [5] | 13,910 | |||||||
Others | 1,906 | 1,588 | 438 | ||||||
Total | ¥ 73,970 | $ 10,771 | ¥ 59,029 | $ 8,298 | ¥ 143,343 | ||||
[1]Upon asset acquisition with Beautiful House, the Group engaged a third party service provider to provide apartment operation services to the Group. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House. To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and loans are repayable on demand.[2]Upon asset acquisition with Beautiful House (Note 8), the Group engaged a third party service provider to provide apartment operation services to the Group. The third party service provider is controlled by one of the shareholders of the Seller of Beautiful House (Note 8). To support the operation services to the tenants, the Group made interest free loans to and operating expenses on behalf of the service provider and the loans are repayable on demand.[3]Upon settle payables due to Beautiful House arising from asset acquisition, the Group made a deposit of RMB 20,602 (US$3,000) to Beautiful House, which is expected to get repaid upon share settlement.[4]Upon settle payables due to Beautiful House arising from asset acquisition (Note 8), the Group paid a deposit of RMB 21,341 (US$3,000) to Beautiful House, which is expected to get repaid upon share settlement.[5]During the six months ended March 31, 2023, the Company paid RMB 13,910 on behalf of certain shareholders who owned less than 5% of outstanding shares of the Company, for transfer of their ordinary shares into ADS which could be traded in the open market. The balance was repayable on demand. |
Property and Equipment, Net (_4
Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) |
Cost: | |||||
Property and equipment, gross | ¥ 3,191 | ¥ 3,191 | ¥ 63,666 | ||
Less: Accumulated depreciation | (2,849) | (2,691) | (24,726) | ||
Property and equipment, net | 342 | $ 50 | 500 | $ 70 | 38,940 |
Vehicle [Member] | |||||
Cost: | |||||
Property and equipment, gross | 2,269 | 2,269 | 3,043 | ||
Office furniture, fixtures and equipment [Member] | |||||
Cost: | |||||
Property and equipment, gross | ¥ 922 | ¥ 922 | ¥ 20,456 |
Intangible Assets, Net (Detai_4
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Cost: | |||
Intangible assets, gross | ¥ 3,001 | ¥ 72,261 | ¥ 202,024 |
Less: Accumulated amortization | (3,001) | (58,786) | (49,560) |
Intangible assets, net | 13,475 | ||
Apartment Rental Contracts [Member] | |||
Cost: | |||
Intangible assets, gross | 3,001 | 55,967 | 112,849 |
Trademarks [Member] | |||
Cost: | |||
Intangible assets, gross | ¥ 16,294 | ¥ 86,900 |
Short-Term Debt (Details)
Short-Term Debt (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
May 28, 2020 CNY (¥) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | |
Short-Term Debt [Abstract] | |||
Proceeds from borrowings | ¥ 50,000 | ¥ 25,527 | $ 3,750 |
Interest rate | 3.85% | 3.85% |
Short-Term Debt (Details) - Sch
Short-Term Debt (Details) - Schedule of Short-Term Debt ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 CNY (¥) | Sep. 30, 2022 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | ||
Schedule Of Short Term Debt Abstract | ||||||
Short-term bank borrowings | ¥ 103,552 | ¥ 103,552 | ||||
Other short-term payable | [1] | 32,072 | 6,545 | |||
Total | ¥ 135,624 | ¥ 110,097 | $ 19,748 | $ 15,477 | ¥ 558,705 | |
[1]During the six months ended March 31, 2023, the Company entered into loan agreements with certain third parties to borrow an aggregation of RMB 25,527 (equivalent of US$3,750). The loans bore an interest rate of 3.85% per annum and payable in twelve months. |
Operating Lease (Details)
Operating Lease (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Lease option to extend description | 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. | ||
Operating lease fixed rent lock in period | 3 years | ||
Annual, non-compounding increase for the rest of the lease period | 5% | 5% | |
Operating lease expenses (in Yuan Renminbi) | ¥ 172,046 | ¥ 300,668 | |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, term of contract | 5 years | ||
Rent free period with landlords | 1 month | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, term of contract | 6 years | ||
Rent free period with landlords | 2 months |
Operating Lease (Details) - Sch
Operating Lease (Details) - Schedule of Operating Lease Assets and Liabilities Recorded on Consolidated Balance Sheets and Other Information ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Oct. 01, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) |
Schedule of Operating Lease Assets and Liabilities Recorded on Consolidated Balance Sheets and Other Information [Abstract] | ||||
Right of use assets | ¥ 417,556 | $ 60,801 | ¥ 627,000 | |
Operating lease liabilities, current | 228,655 | 33,295 | ||
Operating lease liabilities, noncurrent | 188,901 | $ 27,506 | ||
Total operating lease liabilities | ¥ 417,556 | ¥ 627,000 |
Operating Lease (Details) - S_2
Operating Lease (Details) - Schedule of Other Information about the Company’s Leases | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of other Information about the Company Leases [Abstract] | ||
Weighted average remaining lease term (years) | 2 years 4 months 9 days | |
Weighted average discount rate | 4.47% |
Operating Lease (Details) - S_3
Operating Lease (Details) - Schedule of Schedule, by Years, of Maturities of Lease Liabilities - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Oct. 01, 2022 | Sep. 30, 2022 |
2023 | |||
For the six months ending September 30, 2023 | ¥ 136,507 | ||
For the year ending September 30, 2024 | 175,537 | ||
For the year ending September 30, 2025 | 72,950 | ||
For the year ending September 30, 2026 | 26,765 | ||
For the year ending September 30, 2027 | 14,500 | ||
For the year ending September 30, 2028 and thereafter | 17,968 | ||
Total lease payments | 444,227 | ||
Less: Imputed interest | (26,671) | ||
Present value of lease liabilities | ¥ 417,556 | ¥ 627,000 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) |
Accrued Liabilities, Current [Abstract] | |||||
Tenant deposits | ¥ 21,432 | ¥ 5,184 | ¥ 102,355 | ||
Other tax payable | 75,600 | 63,619 | 91,970 | ||
Interest payable | 2,120 | 1,680 | 106,439 | ||
Accrued payroll and welfare | 1,538 | 3,999 | 4,471 | ||
Others | 3,180 | 7,167 | 16,727 | ||
Total | ¥ 103,870 | $ 15,126 | ¥ 81,649 | $ 11,480 | ¥ 1,049,361 |
Share Based Compensation (Detai
Share Based Compensation (Details) - Schedule of Estimate Fair Values of Share Options Granted - $ / shares | 1 Months Ended | ||
Jul. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2016 | |
Schedule Of Estimate Fair Values Of Share Options Granted Abstract | |||
Risk-free rate of return | 3.21% | 3.18% | 3.18% |
Contractual life of option | 8 years 4 months 24 days | 10 years | 10 years |
Estimated volatility rate | 35% | 37% | 37% |
Expected dividend yield | 0% | 0% | 0% |
Fair value of underlying ordinary shares (in Dollars per share) | $ 0.05 | $ 0.04 | $ 0.03 |
Share Based Compensation (Det_2
Share Based Compensation (Details) - Schedule of Share Based Compensation Expenses ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) | |
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items] | ||||||
Total share-based compensation expenses | ¥ 2,307 | ¥ 399 | ¥ 9,771 | $ 1,374 | ¥ 15,806 | ¥ 16,045 |
Selling and Marketing Expense [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items] | ||||||
Selling and marketing expenses | 12 | 2 | ||||
General and Administrative Expense [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items] | ||||||
General and administrative expenses | 2,273 | 4 | ||||
Research and Development Expense [Member] | ||||||
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items] | ||||||
Research and development expenses | ¥ 22 | ¥ 393 |
Equity (Details)
Equity (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Nov. 18, 2022 | Sep. 30, 2021 | |
Equity (Details) [Line Items] | ||||
Percentage of voting power | 49.10% | |||
Class B Ordinary Shares [Member] | ||||
Equity (Details) [Line Items] | ||||
Common stock, voting rights | ten votes per share | ten votes per share | ||
Ordinary shares issued | 2,500,000,000 | 180,389,549 | ||
Class B Ordinary Shares [Member] | Additional Paid-in Capital [Member] | ||||
Equity (Details) [Line Items] | ||||
Additional paid-in capital (in Yuan Renminbi) | ¥ 172 | |||
Class B Ordinary Shares [Member] | 2022 Plan [Member] | ||||
Equity (Details) [Line Items] | ||||
Shares issued | 2,500,000,000 | |||
Shares reserved | 2,500,000,000 | |||
Ordinary shares issued | 0 | |||
Class A Ordinary Shares [Member] | ||||
Equity (Details) [Line Items] | ||||
Common stock, voting rights | one vote per share | one vote per share | ||
Ordinary shares issued | 25,878,920,464 | 25,878,920,464 | 1,544,097,151 |
Loss Per Share (Details) - Sc_3
Loss Per Share (Details) - Schedule of Computation of Basic and Diluted Earnings Per Share ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2023 ¥ / shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2022 ¥ / shares | Sep. 30, 2022 CNY (¥) ¥ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 CNY (¥) ¥ / shares shares | Sep. 30, 2020 CNY (¥) ¥ / shares shares | |
Schedule of Computation of Basic and Diluted Earnings Per Share [Abstract] | ||||||||
Net loss | $ (43,325) | $ (243,224) | ¥ 820,023 | $ 115,275 | ¥ (569,174) | ¥ (1,533,592) | ||
Net loss per share—Basic | (per share) | $ 0 | ¥ 0 | $ (0.14) | ¥ (0.14) | ¥ 0.08 | $ 0.01 | ¥ (0.39) | ¥ (1.14) |
Weighted average number of ordinary shares used in computing net loss per share —Basic | 27,715,937,039 | 1,728,612,425 | 10,258,424,457 | 10,258,424,457 | 1,460,692,909 | 1,351,127,462 |
Loss Per Share (Details) - Sc_4
Loss Per Share (Details) - Schedule of Computation of Basic and Diluted Earnings Per Share (Parentheticals) | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 ¥ / shares shares | Mar. 31, 2023 $ / shares shares | Mar. 31, 2022 ¥ / shares shares | Mar. 31, 2022 $ / shares shares | Sep. 30, 2022 ¥ / shares shares | Sep. 30, 2022 $ / shares shares | Sep. 30, 2021 ¥ / shares shares | Sep. 30, 2020 ¥ / shares shares | |
Schedule of Computation of Basic and Diluted Earnings Per Share [Abstract] | ||||||||
Net loss per share—diluted | (per share) | ¥ 0 | $ 0 | ¥ (0.14) | $ (0.14) | ¥ 0.08 | $ 0.01 | ¥ (0.39) | ¥ (1.14) |
Weighted average number of ordinary shares used in computing net loss per share — diluted | 27,715,937,039 | 27,715,937,039 | 1,728,612,425 | 1,728,612,425 | 10,258,424,457 | 10,258,424,457 | 1,460,692,909 | 1,351,127,462 |
Related party Transactions an_6
Related party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2022 | ||
Wangxiancai Limited [Member] | |||
Related party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party [Line Items] | |||
Related Party | An entity controlled by the legal representative and executive director of one of the subsidiaries | [1] | An entity controlled by the legal representative and executive director of one of the subsidiaries |
Key Space (S) Pte Ltd (“Key Space”) [Member] | |||
Related party Transactions and Balances (Details) - Schedule of Financial Support to these Related Party [Line Items] | |||
Related Party | An entity controlled by certain shareholders of the Group | An entity controlled by certain shareholders of the Group | |
[1]Wangxiancai Limited was no longer a related party of the Company since June 30, 2022 when the Company disposed of the Deconsolidated VIE’s Subsidiaries. |
Related party Transactions an_7
Related party Transactions and Balances (Details) - Schedule of Balance Due to Related Parties - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Related Party Transaction [Line Items] | ||
Due to related parties | ¥ 5,394 | ¥ 4,831 |
Key Space [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 4,065 | 4,065 |
Others [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | ¥ 1,329 | ¥ 766 |