Cover Page
Cover Page | 12 Months Ended |
Sep. 30, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Q&K International Group Limited |
Entity Central Index Key | 0001769256 |
Current Fiscal Year End Date | --09-30 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 1,647,386,700 |
Document Accounting Standard | U.S. GAAP |
Entity Address, Address Line One | Suite 1607, Building A |
Entity Address, Address Line Two | No.596 Middle Longhua Road |
Entity Address, Address Line Three | Xuhui District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Document Annual Report | true |
Document Transition Report | false |
Entity File Number | 001-39111 |
Document Shell Company Report | false |
Document Registration Statement | false |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Postal Zip Code | 200032 |
ICFR Auditor Attestation Flag | false |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | Suite 1607, Building A |
Entity Address, Address Line Two | No.596 Middle Longhua Road |
Entity Address, Address Line Three | Xuhui District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Contact Personnel Name | Chengcai Qu, Chief Executive Officer |
Contact Personnel Email Address | ccqu@qk365.com |
City Area Code | 21 |
Local Phone Number | 6422-8532 |
Entity Address, Postal Zip Code | 200032 |
ADR [Member] | |
Document Information [Line Items] | |
Trading Symbol | QK |
Title of 12(b) Security | American depositary shares |
Security Exchange Name | NASDAQ |
Class A ordinary shares [Member] | |
Document Information [Line Items] | |
No Trading Symbol Flag | true |
Title of 12(b) Security | Class A ordinary shares |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 16,317 | $ 2,532 | ¥ 22,879 |
Restricted cash | 2,935 | 456 | 8,887 |
Accounts receivable, net | 370 | 57 | 1,943 |
Amounts due from related parties | 201 | 31 | 168 |
Prepaid rent and deposit | 571 | 89 | 51,281 |
Advances to suppliers | 12,933 | 2,007 | 16,043 |
Other current assets | 143,343 | 22,246 | 101,803 |
Total current assets | 176,670 | 27,418 | 203,004 |
Non-current assets: | |||
Property and equipment, net | 38,940 | 6,043 | 358,022 |
Intangible assets, net | 152,464 | 23,662 | 222,123 |
Land use rights, net | 10,448 | ||
Other assets | 9,556 | 1,483 | 57,133 |
Total non-current assets | 200,960 | 31,188 | 647,726 |
Total assets | 377,630 | 58,606 | 850,730 |
Current liabilities: | |||
Accounts payable | 320,269 | 49,705 | 294,469 |
Amounts due to related parties | 6,594 | ||
Deferred revenue | 195,636 | 30,362 | 152,619 |
Short-term debt | 558,705 | 86,710 | 762,136 |
Rental instalment loans | 18,094 | 2,808 | 54,505 |
Deposits from tenants | 65,785 | 10,210 | 82,191 |
Payable for asset acquisition | 165,808 | ||
Contingent liabilities for payable for asset acquisition | 164,254 | 25,492 | |
Accrued expenses and other current liabilities | 1,024,882 | 159,059 | 443,418 |
Total current liabilities | 2,347,625 | 364,346 | 1,961,740 |
Non-current liabilities: | |||
Long-term debt | 201,041 | 31,201 | 464,920 |
Convertible note, net | 313,870 | 48,712 | 206,466 |
Long-term deferred rent | 212,054 | ||
Total non-current liabilities | 514,911 | 79,913 | 883,440 |
Total liabilities | 2,862,536 | 444,259 | 2,845,180 |
Commitments and contingencies (Note 16) | |||
Deficit: | |||
Ordinary shares (US$0.00001 par value per share; 3,500,000,000 and 50,000,000,000 shares authorized; 1,436,010,850 shares issued and 1,358,760,850 shares outstanding as of September 30, 2020; and 1,724,486,700 shares issued and 1,647,386,700 shares outstanding as of September 30, 2021, respectively) | 110 | 17 | 92 |
Treasury shares, at cost | (5) | (1) | (298,110) |
Additional paid-in capital | 1,845,295 | 286,385 | 2,085,099 |
Accumulated deficit | (4,378,690) | (679,562) | (3,809,516) |
Accumulated other comprehensive income | 38,784 | 6,018 | 18,357 |
Total Q&K International Group Limited shareholders’ deficit | (2,494,506) | (387,143) | (2,004,078) |
Noncontrolling interest | 9,600 | 1,490 | 9,628 |
Total deficit | (2,484,906) | (385,653) | (1,994,450) |
Total liabilities and deficit | ¥ 377,630 | $ 58,606 | ¥ 850,730 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 |
Statement Of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized | 50,000,000,000 | 3,500,000,000 |
Ordinary shares, shares issued | 1,724,486,700 | 1,436,010,850 |
Ordinary shares, shares outstanding | 1,647,386,700 | 1,358,760,850 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021CNY (¥)¥ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020CNY (¥)¥ / sharesshares | Sep. 30, 2019CNY (¥)¥ / sharesshares | |
Net revenues: | ||||
Rental service | ¥ 939,169 | $ 145,757 | ¥ 1,105,172 | ¥ 1,089,164 |
Value-added services and others | 97,037 | 15,060 | 102,791 | 144,606 |
Total net revenues | 1,036,206 | 160,817 | 1,207,963 | 1,233,770 |
Operating costs and expenses: | ||||
Operating cost (including costs charged by related parties of RMB52,034, RMB 47,464 and RMB nil for the years ended September 30, 2019, 2020 and 2021, respectively) | (949,654) | (147,384) | (1,203,415) | (1,304,992) |
Selling and marketing expenses (including expenses charged by related parties of RMB55,774, RMB nil and RMB nil for the years ended September 30, 2019, 2020 and 2021, respectively) | (13,115) | (2,035) | (63,512) | (135,413) |
General and administrative expenses | (217,108) | (33,695) | (102,769) | (108,196) |
Research and development expenses | (7,768) | (1,206) | (24,934) | (47,029) |
Pre-operation expenses (including expenses charged by related parties of RMB 14,431, RMB nil and RMB nil for the years ended September 30, 2019, 2020 and 2021, respectively) | (14,245) | (42,661) | ||
Impairment loss on long-lived assets | (199,575) | (30,974) | (846,766) | (46,213) |
Loss from disposal of property and equipment and intangible assets | (30,173) | (4,683) | (468,980) | |
Other income (expense),net | (18,476) | (2,867) | 15,881 | 2,427 |
Total operating costs and expenses | (1,435,869) | (222,844) | (2,708,740) | (1,682,077) |
Loss from operations | (399,663) | (62,027) | (1,500,777) | (448,307) |
Interest expense, net | (127,300) | (19,757) | (130,206) | (91,914) |
Debt extinguishment loss | (41,964) | (6,512) | ||
Foreign exchange loss, net | (244) | (38) | (62) | (457) |
Fair value change of contingent earn-out liabilities | 97,417 | 42,404 | ||
Loss before income taxes | (569,171) | (88,334) | (1,533,628) | (498,274) |
Income tax expense | (31) | (5) | (13) | (63) |
Net loss | (569,202) | (88,339) | (1,533,641) | (498,337) |
Less: net loss attributable to noncontrolling interests | (28) | (4) | (49) | (95) |
Net loss attributable to Q&K International Group Limited | (569,174) | (88,335) | (1,533,592) | (498,242) |
Deemed dividend | (307,389) | |||
Net loss attributable to ordinary shareholders | ¥ (569,174) | $ (88,335) | ¥ (1,533,592) | ¥ (805,631) |
Net loss per share attributable to ordinary shareholders of Q&K International Group Limited —Basic and diluted | (per share) | ¥ (0.39) | $ (0.06) | ¥ (1.14) | ¥ (1.87) |
Weighted average number of ordinary shares used in computing net loss per share—Basic and diluted | shares | 1,460,692,909 | 1,460,692,909 | 1,351,127,462 | 430,450,490 |
Net loss | ¥ (569,202) | $ (88,339) | ¥ (1,533,641) | ¥ (498,337) |
Other comprehensive (loss) income, net of tax of nil: | ||||
Foreign currency translation adjustments | 20,427 | 3,170 | 24,265 | (7,621) |
Comprehensive loss | (548,775) | (85,169) | (1,509,376) | (505,958) |
Less: comprehensive loss attributable to noncontrolling interests | (28) | (4) | (49) | (95) |
Comprehensive loss attributable to Q&K International Group Limited | (548,747) | (85,165) | (1,509,327) | (505,863) |
Comprehensive loss attributable to ordinary shareholders | ¥ (548,747) | $ (85,165) | ¥ (1,509,327) | ¥ (813,252) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Costs and expenses charged by related parties | ¥ 47,464 | ¥ 139,026 | |
Other comprehensive income (loss), tax | ¥ 0 | 0 | 0 |
Operating cost | |||
Costs and expenses charged by related parties | 0 | 47,464 | 52,034 |
Selling and marketing expenses | |||
Costs and expenses charged by related parties | 0 | 0 | 55,774 |
Pre-operation expenses | |||
Costs and expenses charged by related parties | ¥ 0 | ¥ 0 | ¥ 14,431 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Series A non-redeemable preferred sharesCNY (¥)shares | Ordinary sharesCNY (¥)shares | Treasury stockCNY (¥) | Additional paid in capitalCNY (¥) | Accumulated other comprehensive (loss) incomeCNY (¥) | Accumulated deficitCNY (¥) | TotalCNY (¥) | Noncontrolling interestsCNY (¥) |
Beginning balance at Sep. 30, 2018 | ¥ (1,423,177) | ¥ 35,777 | ¥ 27 | ¥ 1,713 | ¥ (1,478,466) | ¥ (1,440,949) | ¥ 17,772 | |||
Beginning balance, shares at Sep. 30, 2018 | shares | 255,549,510 | 430,450,490 | ||||||||
Acquisition of noncontrolling interests | (8,000) | (8,000) | ||||||||
Share-based compensation | 8,173 | ¥ 8,173 | 8,173 | |||||||
Deemed dividend accretion | (307,389) | (8,173) | (299,216) | (307,389) | ||||||
Net loss | (498,337) | (498,242) | (498,242) | (95) | ||||||
Foreign currency translation adjustments | (7,621) | (7,621) | (7,621) | |||||||
Ending balance at Sep. 30, 2019 | (2,236,351) | ¥ 35,777 | ¥ 27 | (5,908) | (2,275,924) | (2,246,028) | 9,677 | |||
Ending balance, shares at Sep. 30, 2019 | shares | 255,549,510 | 430,450,490 | ||||||||
Issuance of ordinary shares in connection with initial public offering (“IPO”), net off issuance of cost of RMB 29,289 | 289,027 | ¥ 6 | 289,021 | 289,027 | ||||||
Issuance of ordinary shares in connection with initial public offering (“IPO”), net off issuance of cost of RMB 29,289, shares | shares | 93,150,000 | |||||||||
Conversion of Series Anon-redeemable preferred shares into ordinary shares | ¥ (35,777) | ¥ 17 | 35,760 | |||||||
Conversion of Series Anon-redeemable preferred shares into ordinary shares, shares | shares | (255,549,510) | 255,549,510 | ||||||||
Conversion of mezzanine equity into ordinary shares | 1,425,478 | ¥ 42 | 1,425,436 | 1,425,478 | ||||||
Conversion of mezzanine equity into ordinary shares, shares | shares | 656,860,850 | |||||||||
Repurchase of American Depositary Shares(“ADS”) from certain investors into treasury shares | (298,110) | ¥ (298,110) | (298,110) | |||||||
ADS to be issued in exchange for acquisition of certain assets from two third parties | 312,273 | 312,273 | 312,273 | |||||||
Share-based compensation | 16,045 | 16,045 | 16,045 | |||||||
Warrants issued in connection with convertible notes | 6,564 | 6,564 | 6,564 | |||||||
Net loss | (1,533,641) | (1,533,592) | (1,533,592) | (49) | ||||||
Foreign currency translation adjustments | 24,265 | 24,265 | 24,265 | |||||||
Ending balance at Sep. 30, 2020 | (1,994,450) | ¥ 92 | (298,110) | 2,085,099 | 18,357 | (3,809,516) | (2,004,078) | 9,628 | ||
Ending balance, shares at Sep. 30, 2020 | shares | 1,436,010,850 | |||||||||
Issuance of ordinary shares to settle payable for asset acquisition | 3 | ¥ 11 | (8) | 3 | ||||||
Issuance of ordinary shares to settle payable for asset acquisition, 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, shares | shares | 77,100,000 | |||||||||
Exercise of share-based compensation | ¥ 2 | (2) | ||||||||
Exercise of share-based compensation, shares | shares | 25,000,000 | |||||||||
Issuance and repurchase of ordinary shares | ¥ 5 | (5) | ||||||||
Share-based compensation | 15,806 | 15,806 | 15,806 | |||||||
Warrants issued in connection with convertible notes | 546 | 546 | 546 | |||||||
Net loss | (569,202) | $ (88,339) | (569,174) | (569,174) | (28) | |||||
Foreign currency translation adjustments | 20,427 | 3,170 | 20,427 | 20,427 | ||||||
Ending balance at Sep. 30, 2021 | ¥ (2,484,906) | $ (385,653) | ¥ 110 | ¥ (5) | ¥ 1,845,295 | ¥ 38,784 | ¥ (4,378,690) | ¥ (2,494,506) | ¥ 9,600 | |
Ending balance, shares at Sep. 30, 2021 | shares | 1,724,486,700 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (Parenthetical) ¥ in Thousands | 12 Months Ended |
Sep. 30, 2020CNY (¥) | |
Statement Of Stockholders Equity [Abstract] | |
Issuance of ordinary shares in connection with initial public offering ("IPO"), net off issuance of cost | ¥ 29,289 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | |
Operating activities: | ||||
Net loss | ¥ (569,202) | $ (88,339) | ¥ (1,533,641) | ¥ (498,337) |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
Share-based compensation | 15,806 | 2,453 | 16,045 | 8,173 |
Depreciation and amortization | 79,259 | 12,301 | 263,038 | 215,075 |
Loss from disposal of property, plant and equipment and intangible assets | 30,173 | 4,683 | 468,980 | |
Accretion of interest expense | 1,988 | 309 | 214 | 15,777 |
Fair value change of contingent earn-out liabilities | (97,417) | (42,404) | ||
Deferred rent | (214,557) | (33,299) | (201,127) | 57,550 |
Writing off doubtful accounts | 150,155 | 23,304 | ||
Impairment loss | 199,575 | 30,974 | 846,766 | 46,213 |
Debt extinguishment loss | 41,964 | 6,512 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 1,573 | 244 | (644) | (831) |
Amounts due from related parties | (33) | (5) | 5,419 | 8,940 |
Prepaid rent and deposit | 37,623 | 5,839 | 146,913 | 49,762 |
Advances to suppliers | 9,595 | 1,489 | 47,985 | 4,891 |
Other current assets | 23,460 | 3,641 | 44,756 | 1,960 |
Other assets | 47,577 | 7,384 | (51,187) | (5,557) |
Accounts payable | 25,800 | 4,004 | 115,201 | 16,306 |
Amounts due to related parties | (6,594) | (1,023) | 3,473 | (29,098) |
Deferred revenue | (18,631) | (2,891) | (127,947) | 17,489 |
Deposits from tenants | (16,406) | (2,546) | (161,525) | 49,878 |
Accrued expenses and other current liabilities | 51,214 | 7,949 | 269,539 | (3,976) |
Net cash (used in) provided by operating activities | (109,661) | (17,017) | 54,841 | (88,189) |
Investing activities: | ||||
Purchases of property and equipment | (2) | (99,172) | (341,708) | |
Payment for asset acquisition (Note 8) | (6,484) | (1,000) | (39,498) | |
Purchases of intangible assets | (613) | |||
Cash payment for renovation | (29,078) | |||
Reimbursement received for renovation payment | 11,971 | |||
Collection of amounts due from related parties | 7,978 | |||
Net cash used in investing activities | (6,486) | (1,000) | (138,670) | (351,450) |
Financing activities: | ||||
Proceeds from IPO, net off issuance cost of RMB 29,289 | 289,027 | |||
Proceeds from issuance of convertible notes | 113,236 | 17,574 | 163,565 | |
Payment for repurchase of ADS from certain investors into treasury shares | (248,859) | |||
Proceeds from short-term bank borrowings | 39,652 | 6,154 | 351,046 | 84,000 |
Repayment of short-term bank borrowings | (4,500) | (698) | (65,000) | (79,000) |
Proceeds from long-term bank borrowings | 75,329 | 11,691 | 150,000 | 170,000 |
Repayment of long-term bank borrowings | (37,090) | (5,756) | (122,548) | (49,137) |
Proceeds from rental instalment loans | 258,097 | 1,084,324 | ||
Repayment of rental instalment loans | (85,026) | (13,196) | (924,171) | (1,442,810) |
Acquisition of non-controlling interest | (8,000) | |||
Proceeds from issuance of preferred shares, net of issuance costs | 530,002 | |||
Proceeds from capital lease and other financing arrangement payable | 65,415 | 327,584 | ||
Repayment of capital lease and other financing arrangement payable | (51,496) | (47,394) | ||
Net cash provided by (used in) financing activities | 101,601 | 15,769 | (134,924) | 569,569 |
Effect of foreign exchange rate changes | 2,032 | 557 | (295) | 2,132 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (12,514) | (1,691) | (219,048) | 132,062 |
Cash, cash equivalents and restricted cash at the beginning of the year | 31,766 | 4,679 | 250,814 | 118,752 |
Cash, cash equivalents and restricted cash at the end of the year | 19,252 | 2,988 | 31,766 | 250,814 |
Supplemental disclosure of cash flow information: | ||||
Interest paid, net of amounts capitalized | (1,017) | (158) | (16,628) | (79,601) |
Income taxes paid | (3) | (90) | (57) | |
Supplemental schedule of non-cash investing and financing activities: | ||||
Purchases of property and equipment included in payables | (97,835) | (253,447) | ||
Acquisition of rental assets financed by ADS (Note 4) | (22,540) | |||
Asset acquisition financed by payables and ADS (Note 8) | (455,541) | |||
Asset acquisition settled by ordinary shares | (164,256) | (23,201) | ||
Payment of debt extinguishment cost by ordinary shares | (41,961) | (6,512) | ||
Purchases of property and equipment included in new capital lease | (21,279) | |||
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 | |||
Reconciliation to amounts on the consolidated balance sheets: | ||||
Cash and cash equivalents | 16,317 | 2,532 | 22,879 | 159,799 |
Restricted cash | 2,935 | 456 | 8,887 | 91,015 |
Cash, cash equivalents and restricted cash at the end of the year | ¥ 19,252 | $ 2,988 | ¥ 31,766 | ¥ 250,814 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands | 12 Months Ended |
Sep. 30, 2020CNY (¥) | |
Statement Of Cash Flows [Abstract] | |
Proceeds from issuance of ordinary shares in connection of IPO, net off issuance cost | ¥ 29,289 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. Q&K International Group Limited (the “Company” or “Q&K”), its subsidiaries and consolidated variable interest entities (the “Group”) is a rental apartment operation platform in the People’s Republic of China (the “PRC”), that provides rental and value-added services to young, emerging urban residents since 2012. The Group sources and converts apartments to standardized furnished rooms and leases to young people seeking affordable residence in cities in the PRC. As of September 30, 2021, the Group’s significant subsidiaries, variable interest entity (the “VIE”) and the significant subsidiaries of the VIE are as follows: Entity Date of incorporation Place of incorporation Percentage of legal/beneficial ownership by the Company Principal activities Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding QingKe (China) Limited July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting” or the “WFOE”) April 2, 2015 PRC 100 % Holding and Operating Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd. (“Q&K AI”) May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment Management Co., Ltd June 19, 2020 PRC 100 % Operating VIE: Shanghai Qingke E-Commerce Co., Ltd. (“Q&K E- Commerce” or the “VIE”) August 2, 2013 PRC 100 % Holding and Operating Subsidiaries of the VIE: Shanghai Qingke Equipment Rental Co., Ltd. (“Q&K Rental”) March 17, 2015 PRC 100 % Operating Shanghai Qingke Public Rental Housing Leasing Management Co., Ltd. (“Qingke Public Rental”) November 5, 2014 PRC 100 % Operating Suzhou Qingke Information Technology Co., Ltd. (“Suzhou Qingke”) April 3, 2014 PRC 100 % Operating History of the Group and Reorganization The Group completed its initial public offering (IPO) on the Nasdaq Global Market in November 2019, for a net offering size of approximately US$44,534 (equivalent to RMB289,027). The Group offered 2,700,000 ADSs in the IPO, with each ADS represents 30 Class A ordinary shares, par value $0.00001 per share at $17 per ADS. In addition, the underwriters of the Group’s IPO have exercised in full their over-allotment option to purchase additional 405,000 ADSs, with each ADS represents 30 Class A ordinary shares, par value $0.00001 per share at $17 per ADS. On October 26, 2021, the Group transferred of all of its equity interest in Shanghai Qingke Investment Consulting to Wangxiancai Limited, which is beneficially owned by the legal representative and executive director of one of the Group’s subsidiaries (the “Transfer of Equity Interest”). (Note 17 – Subsequent Events) |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group’s ability to generate cash flows from operations, and the Group’s ability to arrange adequate financing arrangements, to support its working capital requirements. Going concern The Group has been incurring losses from operations since its inception. Accumulated deficits amounted to RMB 3,809,516 and RMB 4,378,690 as of September 30, 2020 and 2021, respectively. Net cash used in operating activities were RMB 88,189 and RMB 109,661 for the years ended September 30, 2019 and 2021, respectively, while the Group generated cash of RMB 54,841 from operating activities for the year ended September 30,2020. As of September 30, 2020 and 2021, current liabilities exceeded current assets by RMB 1,758,736 and RMB 2,170,955, respectively. In addition, 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-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. 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, in early February 2020, the Chinese government required the nationwide closure of many business activities in the PRC to prevent the spread of COVID-19 and protect public health. During this period, the 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 year ended September 30, 2020 and 2021, 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 convertible notes, principal shareholder’s financial support. The Group will focus on the following activities: • In July 2020, the Group has executed a convertible note and warrant purchase agreement with two investors (Note 9) to raise proceeds up to $100 million . By the date of this report, the Group issued the 21 instalments of Notes and raised proceeds aggregating $43,665 (equivalent to RMB 290,155) from the investors. No issuance cost were incurred. For the years ended September 30, 2020 and 2021, the Group raised proceeds of RMB 163,565 and RMB 113,236, respectively. The Group can raise additional proceeds of $49,103 by issuance of convertible bonds to the investors; and • In January 2022, a principal shareholder of the Group, has agreed to consider to provide necessary financial support in the form of debt and/or equity, to the Group to enable the Group to meet its other liabilities and commitments as they become due for at least twelve months from the issuance date of this consolidated financial statements. However, future financing requirements will depend on many factors, including the scale and pace of the expansion of the Group’s apartment network, efficiency in apartment operation, including apartment renovation and pricing, the expansion of the Group’s sales and marketing activities, and potential investments in, or acquisitions of, businesses or technologies. Inability to access financing on favourable terms in a timely manner or at all would materially and adversely affect the Group’s business, results of operations, financial condition, and growth prospects. Principles of consolidation The consolidated financial statements include the financial statements of the Group, its subsidiaries and consolidated variable interest entity and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. To comply with the PRC law and regulations which restrict foreign ownership of companies that provide value-added telecommunication services in the PRC, Q&K Investment Consulting entered into VIE Agreements with Q&K E-Commerce and 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 the VIE 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 the VIE are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the business and operating licenses of the Group’s PRC subsidiaries and VIE; • discontinue or restrict the operations of any related-party transactions between the Group’s PRC subsidiaries and VIE; • limit the Group’s business expansion in China by way of entering into contractual arrangements; • impose fines or other requirements with which the Group’s PRC subsidiaries and VIE may not be able to comply; • require the Group or the Group’s PRC subsidiaries or VIE 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 the VIE or the right to receive their economic benefits, the Group would no longer be able to consolidate the financial results of the VIE. The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of September 30, 2020 2021 RMB RMB USD ASSETS Cash and cash equivalents 15,227 10,982 1,704 Restricted cash 8,887 2,893 449 Accounts receivable, net 1,943 370 57 Amounts due from related parties 168 — — Prepaid rent and deposit 51,281 571 89 Advances to suppliers 32,122 5,323 826 Other current assets 44,400 97,978 15,206 Property and equipment, net 358,022 38,940 6,043 Intangible assets, net 222,123 539 84 Land use rights, net 10,448 — — Other assets 57,024 108 17 Total assets 801,645 157,704 24,475 LIABILITIES Accounts payable 294,469 281,458 43,682 Amounts due to related parties 6,594 — — Deferred revenue 152,619 1,125 175 Short-term debt 540,808 256,773 39,851 Rental instalment loans 54,505 33 5 Deposits from tenants 82,191 1,422 221 Accrued expenses and other current liabilities 427,109 875,572 135,887 Long-term debt 464,920 201,041 31,201 Long-term deferred rent 212,054 — — Total liabilities 2,235,269 1,617,424 251,022 For the years ended September 30, 2019 2020 2021 RMB RMB RMB USD Net revenues 1,233,770 965,093 173,921 26,992 Net loss (177,738 ) (1,491,565 ) (375,470 ) (58,272 ) For the years ended September 30, 2019 2020 2021 RMB RMB RMB USD Net cash provided by (used in) operating activities 393,847 72,293 (108,705 ) (16,871 ) Net cash used in investing activities (713,653 ) (99,172 ) — — Net cash provided by (used in) financing activities 392,388 (95,948 ) 98,466 15,282 The consolidated VIE and VIE’s subsidiaries contributed 100%, 80% and 17% of the Group’s consolidated revenues for the years ended September 30, 2019, 2020 and 2021. As of September 30, 2020 and 2021, the consolidated VIE and VIE’s subsidiaries accounted for an aggregate of 94% and 42%, respectively, of the Group’s consolidated total assets, and 79% and 57%, 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. However, if the VIE were ever to need financial support, the Group may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE. There are no assets held in the VIE and its subsidiaries that can be used only to settle obligations of the VIE and its subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE and its subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Group for any of the liabilities of the VIE. Relevant PRC laws and regulations restrict the VIE from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the 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, contingent earn-out liabilities, 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 Restricted cash mainly represents the Group’s deposits to the bank as a form of security with respect to the Group’s debt and tenants’ repayment of rental instalment loans. The cash held as deposits in the bank are not available to fund the general liquidity needs of the Group. Accounts receivable Accounts receivable mainly consist of rental receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the credit risk of specific customers. In evaluating the credit risk of specific customers, the Group considers several factors, including the age of the balance, the customers’ payment history and their current credit worthiness, and current economic trends. For the years ended September 30, 2019, 2020 and 2021, the Group wrote off doubtful accounts of RMB nil, RMB nil and RMB 19,463, respectively. Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and impairment losses. The renovations and interest cost incurred during construction are capitalized. Depreciation of property and equipment is provided using the straight-line method over their expected useful lives. The expected useful lives are as follows: Leasehold improvements Shorter of the lease term or their estimated useful lives Buildings 45 years Furniture, fixtures and equipment 5-8years Motor vehicles 8 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive loss as the difference between the net sales proceeds and the carrying amount of the underlying asset. Capitalization of interest Interest cost incurred on funds used to construct leasehold improvements during the active construction period is capitalized. The interest capitalized is determined by applying the borrowing interest rate to the average amount of accumulated capital expenditures for the assets under construction during the period. Total interest expenses incurred were RMB 113,917, RMB 134,092 and RMB 127,377 for the years ended September 30, 2019, 2020 and 2021, respectively, out of which the capitalized amount were RMB19,542, nil and nil, respectively. 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: Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years Land use rights Land use rights, which are all located in the PRC, are recorded at cost and amortized on a straight-line basis over the remaining term of the land certificates, which is between 30 to 50 years. Amortization expense of land use rights for the years ended September 30, 2019, 2020 and 2021 amounted to RMB 286, RMB 286 and RMB 286, respectively. Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. For the year ended September 30, 2019 and 2020, the Group recognized impairment losses of RMB 46,213 and 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 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. As of September 30, 2020, the Group had capital lease payable of RMB 73,430. The leasehold improvements or furniture, fixtures and equipment used in apartments obtained under such capital lease arrangements are with aggregate initial value of RMB 136,146 and carrying value of RMB 50,432 as of September 30, 2020. 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. As of September 30, 2020, the Group has RMB 371,124 other financing arrangement payable. The underlying leasehold improvements and furniture, fixtures and equipment are with aggregate initial value of RMB374,609 and carrying value of RMB138,764 as of September 30, 2020. 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, the Group had no outstanding balances of capital lease payable or other financing arrangement payable. 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) company, because the Group has the ability and right to operate the apartments while obtaining more than a minor amount of the output of the apartments. The lease term ranged between 12 and 26 months, and a majority of which have a lock-in period of 12 months or longer. Monthly rent with tenants 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. As of September 30, 2020, the cost for leasehold improvements and furniture, fixtures and equipment used in apartments were RMB 449,637 and RMB 212,483 , respectively, the accumulated depreciation was RMB 146,402 and RMB 49,861 , respectively and the impairment losses was RMB 132,972 and RMB 90,312 , respectively . 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. In the meantime, the Group provided full impairment of RMB 199,575 against underlying leasehold improvements and furniture, fixtures and equipment used in apartments. 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 a10% 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 72,367, RMB 12,921 and RMB 5,695 of rental incentives for the years ended September 30, 2019, 2020 and 2021, respectively. 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 for the years ended September 30, 2019, 2020 and 2021. 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 insti |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | 3. OTHER CURRENT ASSETS As of September 30, 2020 2021 Receivable from sales of buildings under construction (1) — 100,300 Due from a rental service company (2) 52,410 — Deductible input value added tax (3) 35,660 — Due from a service provider (4) 9,501 23,326 Deposit for share settlement (5) — 19,279 Others 4,232 438 101,803 143,343 (1) During the year ended September 30, 2021, the Group sold buildings under construction (See Note 4, Property and equipment, net (2) As of September 30, 2020, the balance due from a rental service company represented the reimbursement renovation costs due from the rental service company. The Group cooperated with the 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. During the year ended September 30, 2021, the Group terminated cooperation with the rental service company. Accordingly, the Group wrote off the outstanding balance of RMB 41,074, and net off the remaining balance due from the rental service company against instalment payable due to the rental service company. As of September 30, 2021, the Group had no balance due from the rental service company. (3) Because the Group made continuous loss over the past years, the Group assessed the input value added tax cannot be recovered. During the year ended September 30, 2021, the Group full impaired the balance of deductible input value added tax of RMB 76,531. (4) Upon asset acquisition with Beautiful House (Note 8), the Group engaged a third party service provider to provide apartment operation services to the Group. To support the operation services, the Group made interest free loans to the service provider and the loans are repayable on demand. (5) Upon settle payables due to Beautiful House arising from asset acquisition (Note 8), the Group paid a deposit of RMB 19,279 to Beautiful House, which is expected to get repaid upon share settlement. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: As of September 30, 2020 2021 Cost: Buildings 40,167 40,167 Leasehold improvements 230,473 - Furniture, fixtures and equipment used in apartments 108,914 - Vehicle 3,043 3,043 Office furniture, fixtures and equipment 20,504 20,456 403,101 63,666 Construction in progress 73,054 — Less: Accumulated depreciation (118,133 ) (24,726 ) 358,022 38,940 In December 2019, the Group acquired from a third party certain rental assets with fair value of RMB 22,540. The consideration was 7,662,060 shares of the Group’s Class A ordinary shares. As of September 30, 2021, the share consideration was paid and was in the account of “additional paid-in capital”. 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. As of September 30, 2021, the Court has not allocated the proceeds to creditors and the Group recorded the proceeds as “ Receivable from sales of buildings under construction” in other current assets . 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 RMB214,192, RMB187,092 and RMB 20,039 for the years ended September 30, 2019, 2020 and 2021, respectively. Impairment loss against property and equipment were RMB 46,213, RMB 313,354 and RMB 199,575 for the years ended September 30, 2019, 2020 and 2021, respectively. For the years ended September 30, 2020 and 2021, the Group disposed of certain property and equipment, including leasehold improvements, f urniture, 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. In September 30, 2021, the Group he Group recognized net loss from disposal from property and equipment of RMB 454,224 and RMB 19,448, respectively. As of September 30, 2020 2021 Cost: Leasehold improvements 620,354 45,548 Furniture, fixtures and equipment used in apartments 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 | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 5. INTANGIBLE ASSETS, NET Intangible assets, net consist of the following: As of September 30, 2020 2021 Cost: Apartment rental contracts 134,452 112,849 Trademarks 86,900 86,900 Software 2,275 2,275 223,627 202,024 Less: Accumulated amortization (1,504 ) (49,560 ) 222,123 152,464 Amortization expenses were RMB 178, RMB 75,660 and RMB 58,934 for the years ended September 30, 2019, 2020 and 2021, respectively. Impairment loss against intangible assets were RMB nil, RMB 533,412 and RMB nil for the years ended September 30, 2019, 2020 and 2021, respectively. For the years ended September 30, 2020 and 2021, the Group disposed of certain apartment rental contracts with net book value of RMB 14,756 and RMB 10,725, respectively, at no consideration. For the years ended September 30, 2020 and 2021, t he Group The following table sets forth the Group’s amortization expenses for the five years since September 30, 2021: Amortization expenses Year ending September 30, 2022 42,804 Year ending September 30, 2023 33,608 Year ending September 30, 2024 22,982 Year ending September 30, 2025 15,600 Year ending September 30, 2026 and thereafter 37,470 152,464 |
DEBT
DEBT | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | 6. DEBT The short-term and long-term debt as of September 30, 2020 and 2021 were as follows: As of September 30, 2020 2021 Short-term debt: Short-term bank borrowings (1) 176,752 116,376 Long-term bank borrowings, current portion (1) 159,721 219,121 Capital lease and other financing arrangement payable, current portion (2) 201,835 — Other short-term payable (3) 223,828 223,208 762,136 558,705 Long-term debt: Long-term bank borrowings, non-current portion (1) 196,682 175,534 Capital lease and other financing arrangement payable, non-current portion (2) 242,719 - Other long term payable (3) 25,519 25,507 464,920 201,041 1,227,056 759,746 (1) 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. On September 26, 2016, the Group entered into a three-year bank credit facility with Shanghai Huarui Bank (the “SHRB”) under which the Group can draw-down up to RMB 300,000 by September 26,2019. The interest rate for this credit facility was determined on the draw-down date. The credit facility is collateralized by future cash flows generated by rental service revenue of certain rental units of the Group. The three-year revolving bank credit facility matured in September 2019. In July and November 2020, SHRB extended due date of borrowing for the principal of RMB 27,000 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 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 S uzhou 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 . 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 . 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. 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, excluding the rental instalment loan facility, the Group did not draw down bank borrowings. As of September 30, 2021, the tenants has drawn down rental instalment loans of RMB 3,507, and the Group recorded the amount in the account of “rental instalment loans”. On June 27, 2019, the Group entered into a six-month bank revolving loan contract with China Construction Bank under which the Group can draw-down up to RMB650,000. The interest rate for this credit facility was determined on the draw-down date and the credit facility required the Group to make a deposit of US$105,000. The loan was repaid in October 2019. (2) Capital lease and other financing arrangement payable 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, the Group had no outstanding balances of capital lease payable or other financing arrangement payable. (3) Other short and long term payable Other long term payable mainly represents loans from certain third party entities with no fixed term at an annual interest rate of 5%. Other short term payable mainly represents loans from certain third party entities due within one year at an annual interest rate ranging between 5% and 6%. 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 . |
OPERATING COSTS
OPERATING COSTS | 12 Months Ended |
Sep. 30, 2021 | |
Operating Costs And Expenses [Abstract] | |
OPERATING COSTS | 7 . OPERATING COSTS Operating costs include all direct costs incurred in the operation of the leased properties. For the years ended September 30, 2019 2020 2021 Rental cost 975,342 813,773 642,354 Depreciation expenses 207,814 256,056 75,332 Personnel cost 23,698 77,392 224,125 Cost for value-added services and others 98,138 56,194 7,843 1,304,992 1,203,415 949,654 |
ASSET ACQUISITION
ASSET ACQUISITION | 12 Months Ended |
Sep. 30, 2021 | |
Business Combinations [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 RMB289,733were 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 identified assets on the basis of their relative fair value. The allocation is as follows: RMB Apartment rental agreements 649,733 Trademarks 194,971 Liabilities assumed by the 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, the Group recorded the liabilities of RMB 164,254, or $25,492 in the account of “Contingent liabilities for payable for asset acquisition”. |
CONVERTIBLE NOTE, NET
CONVERTIBLE NOTE, NET | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTE, NET | 9. 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-year five-year As of September 30, 2021, the Group closed 14 issuances of Notes of $48,824 (approximately RMB 326,790). 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) $11.2508 per ADS for the July Notes and $10.1003 per ADS for September Notes, or (2) if the Group completes an ADS offering of at least $50,000within 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, 2021 and 2021 was as follows: Number of shares Weighted average life Expiration dates Balance of warrants outstanding as of September 30, 2019 — Grants of Warrants on July 29, 2020 104,871 5 years July 29,2025 Grants of Warrants on September 25, 2020 4,696 5 years September 25,2025 Balance of warrants outstanding as of September 30, 2020 109,567 4.84 years Grants of Warrants on October 14, 2020 4,815 5 years October 14, 2025 Grants of Warrants on October 20, 2020 13,848 5 years October 20, 2025 Grants of Warrants on October 29, 2020 15,619 5 years October 29, 2025 Grants of Warrants on December 15, 2020 28,718 5 years December 15, 2025 Grants of Warrants on February 25, 2021 23,152 5 years February 25, 2026 Grants of Warrants on April 7, 2021 15,870 5 years April 7, 2026 Grants of Warrants on May 18, 2021 8,599 5 years May 18, 2026 Grants of Warrants on June 21, 2021 13,575 5 years June 21, 2026 Grants of Warrants on July 13, 2021 37,177 5 years July 13, 2026 Grants of Warrants on July 30, 2021 8,865 5 years July 30, 2026 Grants of Warrants on September 8, 2021 6,556 5 years September 8, 2026 Grants of Warrants on September 30, 2021 6,772 5 years September 30, 2026 Balance of warrants outstanding as of September 30, 2021 293,133 4.25 years The warrants are subject to anti-dilution provisions to reflect stock dividends and splits or other similar transactions, but not as a result of future securities offerings at lower prices. The 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 264,082, 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 5,369, 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 7,176 to the warrants which was recorded as an additional paid-in capital. The key assumption used in estimates are as follows: July 29, 2020 September 25, 2020 October 14, 2020 October 20, 2020 October 29, 2020 December 15, 2020 February 25, 2021 April 7, 2021 May 18, 2021 Terms of warrants 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months Exercise price 11.4618 10.2214 9.3041 8.6653 7.6830 5.1676 3.5418 3.3271 2.0312 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, 2021 July 13, 2021 July 30, 2021 September 8, 2021 September 30, 2021 Terms of warrants 60 months 60 months 60 months 60 months 60 months Exercise price 2.0312 1.6072 1.6072 1.1944 1.1944 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 % The discounts of RMB 7,176 will be amortized as additional interest expense over the terms of Notes. For the years ended September 30, 2020 and 2021, the Group accrued accretion of interest expenses of RMB 214 and RMB 1,988, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of September 30, 2020 2021 Due to a rental service company (1) 182,542 603,884 Tenant deposits 83,682 102,355 Payable to a constructor for leasehold improvements 53,623 62,498 Other tax payable 51,832 67,491 Interest payable 13,435 106,439 Deferred rent 2,503 — Accrued utilities 22,513 25,503 Operation service payable 6,602 35,514 Accrued payroll and welfare 10,451 4,471 Others 16,235 16,727 443,418 1,024,882 (1) As of September 30, 2020, the balance of due to a rental service company primarily represented the rental deposits and prepaid rental fee collected from tenants. The rental deposits and prepaid rental fee belonged to the rental service company, for which the Group provided apartment operation services since April 2020. 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. 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 of RMB 472,662 to the account of “Accrued expenses and other current liabilities”. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | 1 1 . 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. All the share information disclosed in this section refers to the shares of the Group the grantees are entitled through Yijia Inc. shares. The related expenses are reflected in the Group’s consolidated financial statements as share-based compensation expenses with an offset to additional paid-in capital. Given the shares owned by Yijia Inc. 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, 2020 and 2021, the number of outstanding options is 10,600,000 and 10,250,000, respectively, which was equal to the number of option expected to be vested. 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, 2020 and 2021, the Group had 31,150,000 and 23,950,000 share options outstanding, vested and exercisable. Because the exercise price is out of money, the weighted average intrinsic value of these share options were RMB 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 A summary of option activity during the year ended September 30, 2021 is presented below: Number of Options Exercise Price RMB Remaining Contractual Life Outstanding, as of September 30, 2020 41,750,000 2 6.10 Granted — — — Exercised — — — Forfeited (7,550,000 ) 2 6.10 Outstanding, as of September 30, 2021 34,200,000 2 4.96 Vested or expected to vest as of September 30, 2021 34,200,000 2 4.96 The Group recognized the compensation cost for the stock options on a straight line basis over the requisite service periods. Given the vesting was contingent on the IPO, no share-based compensation expense is recognized until the date of the IPO. For the years ended September 30, 2019, 2020 and 2021, the Group recorded compensation expenses of RMB nil, RMB 16,045 and RMB 1,236 in connection with the above stock options. Restricted shares In March 2021, the Group 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. In 2017, the Group issued 15.99 million RSU to a consulting company, of which 5.2 million RSU vested immediately upon grant, and the Group has the right to repurchase the remaining 10.79 million RSU anytime at its discretion with nominal price before certain dates (“repurchase rights”). The Group determined RSU with repurchase rights are not considered issued until the expiration of such rights. At each of the expiration dates, the corresponding RSU are considered issued and vested immediately, and a measurement date has been reached. Under such arrangement, the Group recorded 2.6 million, 2.6 million, 2.8 million, 2.8 million and 2.6 million RSU at the measurement date fair value per share of US$0.05, US$0.06, US$0.10, US$0.20 and US$0.25 on March 16, 2017, November 12, 2017, April 1, 2018, December 1, 2018 and April 1, 2019, respectively. In July 2019, the Group repurchased total 5.19 million RSUs. For the years ended September 30, 2019, 2020 and 2021, the Group recorded compensation expenses of RMB 8,173, RMB nil and RMB 14,570 in connection with the above stock options. For the years ended September 30, 2019, 2020 and 2021, the total compensation expenses were comprised of the following: For the years ended September 30, 2019 2020 2021 Selling and marketing expenses — 83 7 General and administrative expenses 8,173 15,596 15,991 Research and development expenses — 366 (192 ) 8,173 16,045 15,806 |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | 1 2 . 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, 2019 2020 2021 Numerator: Net loss attributable to Q&K International Group Limited (498,242 ) (1,533,592 ) (569,174 ) Deemed dividend (307,389 ) — — Net loss attributable to ordinary shareholders—basic and diluted (805,631 ) (1,533,592 ) (569,174 ) Denominator: Weighted average ordinary shares outstanding—basic and diluted 430,450,490 1,351,127,462 1,460,692,909 Net loss per share—basic and diluted (1.87 ) (1.14 ) (0.39 ) For the years ended September 30, 2019, 2020 and 2021, potential ordinary shares from assumed conversion of 912,410,360, 0 and 0 preferred shares and 0, 2,789,720 and 7,452,445 convertible notes as well as 68,220,000, 41,750,000 and 34,200,000 options and 0, 109,567 and 293,133 warrants to purchase the Group’s ordinary shares have not been reflected in the calculation of diluted net loss per share as their inclusion would have been anti-dilutive. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. INCOME TAXES Cayman Islands Under the current laws of the Cayman Islands, the Group, Q&K International Group Limited is not subject to tax on income or capital gain. BVI Islands Under the current laws of the British Virgin Islands (“BVI”), the Group, QK365.com Inc. incorporated in BVI is not subject to tax on income or capital gain. Hong Kong QingKe (China) Limited is subject to Hong Kong profit tax. The applicable tax rate for the first Hong Kong dollar (“HKD$”) $2,000 of assessable profits is 8.25% 16.5% 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%. PRC Under the Law of the People’s Republic of China on Enterprise Income Tax (“EIT Law”), which was effective from January 1, 2008, domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25%. Tax expense is comprised of the following: For the years ended September 30, 2019 2020 2021 Current tax 63 13 31 Deferred tax — — — 63 13 31 A reconciliation between the effective income tax rate and the PRC statutory income tax rate are as follows: For the years ended September 30, 2019 2020 2021 PRC statutory tax rate 25 % 25 % 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 )% Tax effect of other expenses that are not deductible in determining taxable profit (2.4 )% — (0.9 )% Effect of share-based compensation — (0.3 )% (0.7 )% Tax effect of loss on disposal of long-term assets — (7.6 )% (2.0 )% Effect of change in valuation allowance (22.6 )% (17.6 )% (16.4 )% (0.0 )% (0.0 )% (0.0 )% The principal components of the Group’s deferred income tax assets as of September 30, 2020 and 2021 are as follows: As of September 30, 2020 2021 Deferred tax assets: Net losses carry forwards 268,477 215,193 Impairment loss on long-term assets 263,774 313,668 Allowance of doubtful accounts — 37,668 Other accrued expenses 21,322 22,746 Deferred rent 53,757 — Advertising expenses 12,592 12,592 Valuation allowance (619,922 ) (601,867 ) — — Movement of the valuation allowance is as follows: Balance as of September 30, 2018 233,191 Addition 105,773 Write off — Balance as of September 30, 2019 338,964 Addition 280,958 Write off — Balance as of September 30, 2020 619,922 Addition 94,809 Write off (112,864 ) Balance as of September 30, 2021 601,867 The write down of the valuation allowance is related to a reduction of the deferred tax asset for net operating losses to the realizable amount based on prior tax filings 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, 2021, the Group had tax loss carryforwards of RMB 860,268 which will expire between 2022 and 2026 if not used. 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 2017 through 2021 on non-transfer pricing matters, and from 2011 through 2021 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, 2020 and 2021. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting basis over tax basis in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Group completed its feasibility analysis on a method, which the Group will ultimately execute if necessary to repatriate the undistributed earnings of the VIE without significant tax costs. As such, the Group does not accrue deferred tax liabilities on the earnings of the VIE given that the Group will ultimately use the means. Aggregate undistributed earnings of the Group’s PRC subsidiaries and VIE that are available for distribution was not material as of September 30, 2020 and 2021. |
STATUTORY RESERVES AND NET REST
STATUTORY RESERVES AND NET RESTRICTED ASSETS | 12 Months Ended |
Sep. 30, 2021 | |
Statutory Reserves And Restricted Assets [Abstract] | |
STATUTORY RESERVES AND NET RESTRICTED ASSETS | 1 4 . 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 1,754,615 and RMB 1,754,615 as of September 30, 2020 and 2021, respectively. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 1 5 . 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”) (iii) An entity controlled by certain shareholders of the Group Shanghai Qingke Robot Technology Co., Ltd. (“Robot”)(i) An affiliate of Founder and CEO of the Group Shanghai Yijia Property Management Co., Ltd. (“Yijia Property”) (iii) An entity controlled by certain shareholders of the Group Shanghai Xulong Trading Co., Ltd. (“Xulong”)(ii) An entity controlled by the parents of Founder and CEO of the Group Shanghai Youzhen Information Technology Co., Ltd. (“Youzhen”) (iii) An entity controlled by the parents of Founder and CEO of the Group Shanghai Qingji Property Management Co., Ltd. (“Qingji”) (iii) An entity controlled by certain shareholders of the Group Key Space (S) Pte Ltd (“Key Space”) An entity controlled by certain shareholders of the Group ( i ) Robot ceased to be a related party of the Group in April 2019. (ii) Xulong ceased to be a related party of the Group in March 2019. (iii) Laiguan, Yijia, Youzhen 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, 2019, 2020 and 2021, services provided by the related parties were RMB139,026, RMB 47,464 and RMB nil, respectively : For the years ended September 30, 2019 2020 2021 Purchases of property and equipment from Xulong. 12,205 — — Labor outsourcing service expense to Laiguan 43,003 25,059 — Labor outsourcing service expense to Qingji. 41,180 22,405 — Value-added service cost to Robot 28,336 — — Storage and logistic service expense to Xulong 4,582 — — Marketing service expense to Xulong. 9,720 — — 139,026 47,464 — As stated in Note 9, for the years ended September 30, 2020 and 2021 the Group issued convertible notes in exchange for cash of $24,018 (RMB 163,565) and $17,574 (RMB 113,236), 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. For the year ended September 30, 2020 and 2021, the Group accrued interest expenses of RMB 4,365 and RMB 49,512 on the convertible notes. As of September 30, 2020 and 2021, amounts due from related parties were RMB168 and RMB 201, respectively, and details are as follows: As of September 30, 2020 2021 Youzhen. 125 — Others 43 201 168 201 As of September 30, 2020 and 2021, amounts due to related parties were RMB 6,594 and RMB nil, respectively, and details are as follows: As of September 30, 2020 2021 Yijia Property 4,156 — Qingji 1,539 — Laiguan 882 — Others 17 — 6,594 — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 1 6 . 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, 2021 were as follows: For the years ending September 30, 2022 559,843 2023 409,420 2024 222,260 2025 89,834 2026 44,175 Thereafter 4,995 Total 1,330,527 (b) Purchase Commitments As of September 30, 2021, the Group’s did not have commitments related to leasehold improvements and installation of equipment. (c) Contingencies During the year ended September 30, 2020, the Group, via short message notification, early terminated certain apartment rental agreements with landlords. The Group continued to make estimation of contingent compensation expenses due to landlords. As of September 30, 2021, the Group had the below accrual of contingent compensation expenses: • As of September 30, 2020, Certain landlords had disputes on the early termination and entered into legal proceedings against the Group for compensation aggregating RMB 5,211. For the year ended September 30, 2021, the Group paid compensation expenses of RMB 1,302 to landlords who won the legal proceedings. The Group estimated it exposed to the remaining compensation of RMB 3,909 as of September 30, 2021 and recorded the contingent liability in the account of “accrued expenses and other current liabilities”. • Certain landlords had disputes but did not enter into legal proceedings against the Group. These landlords had rights to file legal proceedings against the Group within 3 years from the short message notification, for a maximum compensation of RMB 58,003, which is three times of the rental agreement value. However the Group estimated the likelihood of the legal proceeding as reasonably possible though these landlords has not initiated legal proceedings as of the report date. In addition, the compensation amount will be negotiated with each individual landlord, the amount of compensation cannot be reasonably estimated as of the date of report date. As of September 30, 2021, the Group did not accrue the contingent liability in the balance sheet. • Certain landlords did not reply to the Group’s short message within three months, which legally implied that they agreed with the termination, and the Group is not obliged to compensation for these landlords. The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. Except for the above-mentioned contingencies, the Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 1 7 . SUBSEQUENT EVENTS On October 26, 2021, the Group transferred of all of its equity interest in Shanghai Qingke Investment Consulting 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 “Transfer of Equity Interest”). The Transfer of Equity Interest is made at nominal consideration. The WFOE has a series of contractual arrangements with Shanghai Qingke E-commerce, the Group’s variable interest entity, through which the Group carried out certain rental apartment operation business. Shanghai Qingke Investment Consulting and Shanghai Qingke E-commerce, on a consolidated basis, had been loss making. According to the contractual arrangements, Shanghai Qingke E-commerce agrees to pay service fees equivalent to no less than 100% of its annual net profit to Shanghai Qingke Investment Consulting. However, Shanghai Qingke E-commerce had never paid any service fee to the Shanghai Qingke Investment Consulting under the contractual arrangement as it had been loss making. The Transfer of Equity Interest was performed to dedicate the Group’s business resources to operate higher-quality rental apartments through the Group’s subsidiaries in China. As a result of the Transfer of Equity Interest, the Group no longer conducts any operation through a variable interest entity. After the Transfer of Equity Interest, in January 2022, Qingke Public Rental, one of the subsidiaries of the VIE, filed the voluntary petition for bankruptcy under the Article 2 of the PRC Enterprise Bankruptcy Law with Shanghai Third Intermediary Court (“Court”). The Court announced the effectiveness of the petition on January 4, 2022. In January 2022, a principal shareholder of the Group, has agreed to consider to provide necessary financial support in the form of debt and/or equity, to the Group to enable the Group to meet its other liabilities and commitments as they become due for at least twelve months from the issuance date of this consolidated financial statements. |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | 1 8 . CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY Pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, condensed financial information is required as to the financial position, changes in financial position and results of operations of a parent company as of the same date and for the same period for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Group does not include condensed financial information as to the changes in deficit as such financial information is the same as the consolidated statements of changes in shareholders’ deficit. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries and consolidated VIEs. For the parent company, the Group records its investments in subsidiaries and consolidated VIEs under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as ‘‘Investments in subsidiaries and consolidated VIE and VIE’s subsidiaries’’ and the subsidiaries and consolidated VIEs’ losses as ‘‘Equity in losses of subsidiaries and consolidated VIE and VIE’s subsidiaries’’ on the Condensed Statements of Comprehensive Loss. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, the losses of subsidiaries and consolidated VIEs regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses. For the years ended September 30, 2019, 2020 and 2021, there were no material contingencies, significant provisions of long-term obligations, guarantees of the Group. Translations of balances in the additional financial information of Parent Company—Financial Statements Schedule I from RMB into US$ as of and for the year ended September 30, 2021 are solely for the convenience of the readers and were calculated at the rate of US$1.00= RMB 6.4434, as set forth in H.10 statistical release of the Federal Reserve Board on September 30, 2021. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into United States dollars at that rate on September 30, 2021, or at any other rate. PARENT COMPANY CONDENSED BALANCE SHEETS (Renminbi in thousands, except share data and per share data, unless otherwise stated) As of September 30, 2020 2021 RMB RMB USD Assets Cash and cash equivalents 6,015 1,355 209 Other receivables, deposits and other assets — — — Amounts due from subsidiaries and consolidated VIEs 1,385,814 1,465,312 227,413 Total assets 1,391,829 1,466,667 227,622 Liabilities Short-term borrowings 221,328 210,776 32,712 Accrued expenses and other current liabilities 13,126 - - Contingent liabilities for payable for asset acquisition — 164,254 25,492 Convertible notes 206,251 313,870 48,712 Deficit of investments in subsidiaries and consolidated VIEs 2,955,202 3,272,273 507,849 Total liabilities 3,395,907 3,961,173 614,765 Shareholders’ deficit: Ordinary shares 92 110 17 Treasury stock (298,110 ) (5 ) (1 ) Additional paid-in capital 2,085,099 1,845,295 286,385 Accumulated deficits (3,809,516 ) (4,378,690 ) (679,562 ) Accumulated other comprehensive(loss) income 18,357 38,784 6,018 Total shareholders’ deficit (2,004,078 ) (2,494,506 ) (387,143 ) Total liabilities and shareholders’ deficit 1,391,829 1,466,667 227,622 PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (Renminbi in thousands, unless otherwise stated) For the Years Ended September 30, 2019 2020 2021 2021 RMB RMB RMB USD Selling, general and administrative expenses (15,888 ) (37,557 ) (27,302 ) (4,237 ) Interest income (expenses) 1,761 (42,507 ) (61,265 ) (9,508 ) Debt extinguishment loss — — (41,961 ) (6,512 ) Fair value change of contingent earn-out liabilities 42,404 97,417 — — Income (loss) before equity in losses of subsidiaries and consolidated VIEs and VIE’s subsidiaries 28,277 17,353 (130,528 ) (20,257 ) Equity in losses of subsidiaries and consolidated VIE and VIE’s subsidiaries (526,614 ) (1,550,994 ) (438,674 ) (68,082 ) Net loss (498,337 ) (1,533,641 ) (569,202 ) (88,339 ) Foreign currency translation adjustments (7,621 ) 24,265 20,427 3,170 Deemed dividend (307,389 ) — — — Comprehensive loss (813,347 ) (1,509,376 ) (548,775 ) (85,169 ) CONDENSED STATEMENTS OF CASH FLOWS (Renminbi in thousands, unless otherwise stated) For the Years Ended September 30, 2019 2020 2021 2021 RMB RMB RMB USD Net cash used in operating activities (20,149 ) (17,452 ) (30,664 ) (4,759 ) Net cash used in investing activities (460,663 ) (407,297 ) (87,232 ) (13,538 ) Net cash provided by financing activities 530,002 329,839 113,236 17,574 Effect of exchange rate changes 2,087 (232 ) — 47 Net increase (decrease) in cash and cash equivalents 51,277 (95,142 ) (4,660 ) (676 ) Cash and cash equivalents and restricted cash at the beginning of the year 49,880 101,157 6,015 886 Cash and cash equivalents and restricted cash at the end of the year 101,157 6,015 1,355 210 |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group’s ability to generate cash flows from operations, and the Group’s ability to arrange adequate financing arrangements, to support its working capital requirements. |
Going concern | Going concern The Group has been incurring losses from operations since its inception. Accumulated deficits amounted to RMB 3,809,516 and RMB 4,378,690 as of September 30, 2020 and 2021, respectively. Net cash used in operating activities were RMB 88,189 and RMB 109,661 for the years ended September 30, 2019 and 2021, respectively, while the Group generated cash of RMB 54,841 from operating activities for the year ended September 30,2020. As of September 30, 2020 and 2021, current liabilities exceeded current assets by RMB 1,758,736 and RMB 2,170,955, respectively. In addition, 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-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. 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, in early February 2020, the Chinese government required the nationwide closure of many business activities in the PRC to prevent the spread of COVID-19 and protect public health. During this period, the 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 year ended September 30, 2020 and 2021, 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 convertible notes, principal shareholder’s financial support. The Group will focus on the following activities: • In July 2020, the Group has executed a convertible note and warrant purchase agreement with two investors (Note 9) to raise proceeds up to $100 million . By the date of this report, the Group issued the 21 instalments of Notes and raised proceeds aggregating $43,665 (equivalent to RMB 290,155) from the investors. No issuance cost were incurred. For the years ended September 30, 2020 and 2021, the Group raised proceeds of RMB 163,565 and RMB 113,236, respectively. The Group can raise additional proceeds of $49,103 by issuance of convertible bonds to the investors; and • In January 2022, a principal shareholder of the Group, has agreed to consider to provide necessary financial support in the form of debt and/or equity, to the Group to enable the Group to meet its other liabilities and commitments as they become due for at least twelve months from the issuance date of this consolidated financial statements. However, future financing requirements will depend on many factors, including the scale and pace of the expansion of the Group’s apartment network, efficiency in apartment operation, including apartment renovation and pricing, the expansion of the Group’s sales and marketing activities, and potential investments in, or acquisitions of, businesses or technologies. Inability to access financing on favourable terms in a timely manner or at all would materially and adversely affect the Group’s business, results of operations, financial condition, and growth prospects. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Group, its subsidiaries and consolidated variable interest entity and its subsidiaries. All intercompany transactions and balances are eliminated on consolidation. To comply with the PRC law and regulations which restrict foreign ownership of companies that provide value-added telecommunication services in the PRC, Q&K Investment Consulting entered into VIE Agreements with Q&K E-Commerce and 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 the VIE 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 the VIE are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the business and operating licenses of the Group’s PRC subsidiaries and VIE; • discontinue or restrict the operations of any related-party transactions between the Group’s PRC subsidiaries and VIE; • limit the Group’s business expansion in China by way of entering into contractual arrangements; • impose fines or other requirements with which the Group’s PRC subsidiaries and VIE may not be able to comply; • require the Group or the Group’s PRC subsidiaries or VIE 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 the VIE or the right to receive their economic benefits, the Group would no longer be able to consolidate the financial results of the VIE. The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of September 30, 2020 2021 RMB RMB USD ASSETS Cash and cash equivalents 15,227 10,982 1,704 Restricted cash 8,887 2,893 449 Accounts receivable, net 1,943 370 57 Amounts due from related parties 168 — — Prepaid rent and deposit 51,281 571 89 Advances to suppliers 32,122 5,323 826 Other current assets 44,400 97,978 15,206 Property and equipment, net 358,022 38,940 6,043 Intangible assets, net 222,123 539 84 Land use rights, net 10,448 — — Other assets 57,024 108 17 Total assets 801,645 157,704 24,475 LIABILITIES Accounts payable 294,469 281,458 43,682 Amounts due to related parties 6,594 — — Deferred revenue 152,619 1,125 175 Short-term debt 540,808 256,773 39,851 Rental instalment loans 54,505 33 5 Deposits from tenants 82,191 1,422 221 Accrued expenses and other current liabilities 427,109 875,572 135,887 Long-term debt 464,920 201,041 31,201 Long-term deferred rent 212,054 — — Total liabilities 2,235,269 1,617,424 251,022 For the years ended September 30, 2019 2020 2021 RMB RMB RMB USD Net revenues 1,233,770 965,093 173,921 26,992 Net loss (177,738 ) (1,491,565 ) (375,470 ) (58,272 ) For the years ended September 30, 2019 2020 2021 RMB RMB RMB USD Net cash provided by (used in) operating activities 393,847 72,293 (108,705 ) (16,871 ) Net cash used in investing activities (713,653 ) (99,172 ) — — Net cash provided by (used in) financing activities 392,388 (95,948 ) 98,466 15,282 The consolidated VIE and VIE’s subsidiaries contributed 100%, 80% and 17% of the Group’s consolidated revenues for the years ended September 30, 2019, 2020 and 2021. As of September 30, 2020 and 2021, the consolidated VIE and VIE’s subsidiaries accounted for an aggregate of 94% and 42%, respectively, of the Group’s consolidated total assets, and 79% and 57%, 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. However, if the VIE were ever to need financial support, the Group may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE. There are no assets held in the VIE and its subsidiaries that can be used only to settle obligations of the VIE and its subsidiaries, except for registered capital and the PRC statutory reserves. As the VIE and its subsidiaries are incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Group for any of the liabilities of the VIE. Relevant PRC laws and regulations restrict the VIE from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the 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, contingent earn-out liabilities, 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 Restricted cash mainly represents the Group’s deposits to the bank as a form of security with respect to the Group’s debt and tenants’ repayment of rental instalment loans. The cash held as deposits in the bank are not available to fund the general liquidity needs of the Group. |
Accounts receivable | Accounts receivable Accounts receivable mainly consist of rental receivables, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Group establishes an allowance for doubtful accounts primarily based on the credit risk of specific customers. In evaluating the credit risk of specific customers, the Group considers several factors, including the age of the balance, the customers’ payment history and their current credit worthiness, and current economic trends. For the years ended September 30, 2019, 2020 and 2021, the Group wrote off doubtful accounts of RMB nil, RMB nil and RMB 19,463, respectively. |
Property and equipment, net | Property and equipment, net Property and equipment, net are stated at cost less accumulated depreciation and impairment losses. The renovations and interest cost incurred during construction are capitalized. Depreciation of property and equipment is provided using the straight-line method over their expected useful lives. The expected useful lives are as follows: Leasehold improvements Shorter of the lease term or their estimated useful lives Buildings 45 years Furniture, fixtures and equipment 5-8years Motor vehicles 8 years Construction in progress represents leasehold improvements under construction or being installed and is stated at cost. Cost comprises original cost of property and equipment, installation, construction and other direct costs. Construction in progress is transferred to leasehold improvements and depreciation commences when the asset is ready for its intended use. Expenditures for repairs and maintenance are expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the consolidated statements of comprehensive loss as the difference between the net sales proceeds and the carrying amount of the underlying asset. |
Capitalization of interest | Capitalization of interest Interest cost incurred on funds used to construct leasehold improvements during the active construction period is capitalized. The interest capitalized is determined by applying the borrowing interest rate to the average amount of accumulated capital expenditures for the assets under construction during the period. Total interest expenses incurred were RMB 113,917, RMB 134,092 and RMB 127,377 for the years ended September 30, 2019, 2020 and 2021, respectively, out of which the capitalized amount were RMB19,542, nil and nil, respectively. |
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: Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years |
Land use rights | Land use rights Land use rights, which are all located in the PRC, are recorded at cost and amortized on a straight-line basis over the remaining term of the land certificates, which is between 30 to 50 years. Amortization expense of land use rights for the years ended September 30, 2019, 2020 and 2021 amounted to RMB 286, RMB 286 and RMB 286, respectively. |
Impairment of long-lived assets | Impairment of long-lived assets The Group evaluates its long-lived assets and finite lived intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss equal to the difference between the carrying amount and fair value of these assets. For the year ended September 30, 2019 and 2020, the Group recognized impairment losses of RMB 46,213 and 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 Capital lease and other financing arrangement) . |
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. As of September 30, 2020, the Group had capital lease payable of RMB 73,430. The leasehold improvements or furniture, fixtures and equipment used in apartments obtained under such capital lease arrangements are with aggregate initial value of RMB 136,146 and carrying value of RMB 50,432 as of September 30, 2020. 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. As of September 30, 2020, the Group has RMB 371,124 other financing arrangement payable. The underlying leasehold improvements and furniture, fixtures and equipment are with aggregate initial value of RMB374,609 and carrying value of RMB138,764 as of September 30, 2020. 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, the Group had no outstanding balances of capital lease payable or other financing arrangement payable. |
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) company, because the Group has the ability and right to operate the apartments while obtaining more than a minor amount of the output of the apartments. The lease term ranged between 12 and 26 months, and a majority of which have a lock-in period of 12 months or longer. Monthly rent with tenants 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. As of September 30, 2020, the cost for leasehold improvements and furniture, fixtures and equipment used in apartments were RMB 449,637 and RMB 212,483 , respectively, the accumulated depreciation was RMB 146,402 and RMB 49,861 , respectively and the impairment losses was RMB 132,972 and RMB 90,312 , respectively . 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. In the meantime, the Group provided full impairment of RMB 199,575 against underlying leasehold improvements and furniture, fixtures and equipment used in apartments. 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 a10% 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 72,367, RMB 12,921 and RMB 5,695 of rental incentives for the years ended September 30, 2019, 2020 and 2021, respectively. 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 for the years ended September 30, 2019, 2020 and 2021. 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 90-120days 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 . As of September 30, 2020 and 2021, deferred rent of RMB 2,503 and RMB nil were recorded in accrued expenses and other current liabilities and RMB 212,054 and RMB nil were recorded as long-term deferred rent, respectively. Rental expense to the landlords recorded in consolidated statements of comprehensive losses were RMB1,003,572, RMB 813,773 and RMB 642,354 for the years ended September 30, 2019, 2020 and 2021, 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 and 2021, 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 RMB39,583, RMB 10,773 and RMB nil for the years end September 30, 2019, 2020 and 2021, respectively. |
Research and development expenses | Research and development expenses Research and development expenses include payroll expenses, employee benefits, and other headcount-related expenses associated with platform development and big data analysis to support the Group’s business operations. |
Employee benefit expenses | Employee benefit expenses As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan and accrues for these benefits based on certain percentages of the qualified employees’ salaries. The total expenses the Group incurred for the plan were RMB20,051, RMB 18,283 and RMB 3,383 for the years ended September 30, 2019, 2020 and 2021, respectively. |
PRC value-added taxes and related taxes | PRC value-added taxes and related taxes The Group is subject to value-added taxes at the rate of 6%, 9% and 13%, education surtax and urban maintenance and construction tax, on the services provided in the PRC. Education surtax and urban maintenance and construction tax are primarily levied based on revenue at applicable rates and are recorded as a reduction of revenues. |
Income taxes | Income taxes Current income taxes are provided on the basis of profit before income tax for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. The Group follows the asset and liability method of accounting for income taxes. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such determination, the management considers all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step 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, 2020 and 2021, 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 SHRB. As of September 30, 2020 and 2021, the Group had treasury shares account of 77,250,000 and 77,100,000 ordinary shares with total balance of RMB 298,110 and RMB 5. |
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, 2021 are solely for the convenience of the readers and were calculated at the rate of USD1.00=RMB 6.4434, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on September 30, 2020. 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, 2021, 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. TheCOVID-19outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Group’s businesses have been negatively impacted by theCOVID-19coronavirus outbreak to a certain extent. Due to the outbreak of COVID-19, in early February 2020, the Chinese government required the nationwide closure of many business activities in the PRC to prevent the spread of COVID-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 year ended September 30, 2020 and 2021, 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. As of the filing date of the consolidated financial statements, the spread of COVID-19in China appears to have slowed down and most provinces and cities have resumed business activities under the guidance and support of the local government. 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 ofCOVID-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 Group’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, amounts due from related parties, accounts payable, amounts due to related parties, short-term debt, rental instalment loans, deposits from tenants, other current liabilities, long-term debt, and convertible note. 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, 2020 and 2021: Fair Value Measurements at Reporting Date Using Description Fair Value as of September 30 RMB Quoted Prices in Active Markets for Identical Assets (Level 1) RMB Significant Other Observable Inputs (Level 2) RMB Significant Unobservable Inputs (Level 3) RMB Total Gain for the Year Ended September 30, RMB As of September 30, 2020 Contingent earn-out liabilities — — — — 97,417 As of September 30, 2021 Contingent liabilities for payable for asset acquisition 164,254 164,254 — — — The Group recorded a gain from fair value change of contingent earn-out liabilities of RMB . The fair value change of contingent earn-out liabilities mainly relates to our contingent earn-out liabilities to series C, C-1 and C-2 preferred shareholders, which were waived in FY 2020 upon the completion of our initial public offering. 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 Group determines the fair value with the help from third party professional valuation specialists, and the assumptions used in estimating fair value require significant judgment. The use of different assumptions and judgments could result in a materially different estimate of fair value. Key inputs in determining the fair value of the contingent earn-out liabilities include assumptions such as operating income, operating cost, number of new apartments acquired, probabilities of qualified IPO, etc., and changes in these assumptions would affect the number and value of future additional shares to be issued. Contingent earn-out liabilities are classified in Level 3 of the valuation hierarchy. The following table presents the Group’s assets measured at fair value on a non-recurring basis for the years ended September 30, 2019, 2020 and 2021: Fair Value Measurements at Reporting Date Using Years Ended September 30, Description Fair Value as of September 30 RMB Quoted Prices in Active Markets for Identical Assets (Level 1) RMB Significant Other Observable Inputs (Level 2) RMB Significant Unobservable Inputs (Level 3) RMB Total Loss for the Year Ended September 30, RMB 2019 Property and equipment 124,993 — — 124,993 46,213 2020 93,635 — — 93,635 313,354 2021 — — — — 199,575 2020 Apartment rental agreements 134,452 — — 134,452 425,341 2021 75,883 — — 75,883 — 2020 Trademarks 86,900 — — 86,900 108,071 2021 76,038 — — 76,038 — The property and equipment subject to impairment test represented leasehold improvements, and f urniture, fixtures and equipment used in apartments. 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 RMB46,213, RMB 313,354 and RMB 199,575 for the years ended September 30, 2019, 2020 and 2021, respectively. The Group acquired from Great Alliance Coliving Limited. and its affiliates (“Beautiful House”) certain assets, including approximately 72,000apartment 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. • The apartment rental agreements with both landlords and tenants were valued using the multiperiod excess earnings method, which incorporated certain assumptions including projected rooms’ revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. The revenue growth rate and the discount rate were the significant unobservable inputs used in the fair value measurement, which were negative 12.5% and 19% for the year ended September 30, 2020, and • the trademarks were valued using the relief from royalty method, which incorporated certain assumptions including projected revenues contributed by trademarks, royalty savings and projected trends of operating results. The revenue growth rate and the discount rate were the significant unobservable inputs used in the fair value measurement, which were negative 10% and 19% for the year ended September 30, 2020. As a result of reduced expectations of future cash flows from certain leased apartments, the Group determined that neither apartment rental contracts nor trademarks were fully recoverable and consequently recorded impairment charges of RMB425,341 and RMB 108,071, respectively, for the year ended September 30, 2020. 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 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. |
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, 2019, 2020 and 2021, the Group recognized share-based compensation expenses of RMB 8,173, RMB 16,045 and RMB 15,806, respectively, in the consolidated statements of comprehensive loss. |
Losses per share | Losses per share Basic losses per share are computed by dividing net loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. The Group’s preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. Accordingly, the Group uses the two-class method of computing earnings per share. For the years ended September 30, 2019, 2020 and 2021, two-class method was not applicable as the Group had a net loss while the preferred shares do not have contractual obligations to share in the losses of the Group. Diluted loss per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. Potential ordinary shares, including preferred shares, convertible notes, share options and warrants are excluded from the computation in income periods should their effects be anti-dilutive. The Group had convertible redeemable and non-redeemable preferred shares, 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 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 Acquistion | 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. 2018-10Codification 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. The Group is in the process of evaluating the impact on its consolidated financial statements upon adoption. 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 December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes. ASU2019-12is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, which is 2022 fiscal year for the Group, with early adoption permitted. The Group does not expect adoption of the new guidance to have a significant impact on its consolidated financial statements. 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. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of significant subsidiaries, variable interest entity and the significant subsidiaries of the VIE | As of September 30, 2021, the Group’s significant subsidiaries, variable interest entity (the “VIE”) and the significant subsidiaries of the VIE are as follows: Entity Date of incorporation Place of incorporation Percentage of legal/beneficial ownership by the Company Principal activities Subsidiaries: QK365.com INC. (BVI) September 29, 2014 BVI 100 % Holding QingKe (China) Limited July 7, 2014 Hong Kong 100 % Holding Q&K Investment Consulting Co., Ltd. (“Q&K Investment Consulting” or the “WFOE”) April 2, 2015 PRC 100 % Holding and Operating Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd. (“Q&K AI”) May 13, 2019 PRC 100 % Holding and Operating Chengdu Liwu Apartment Management Co., Ltd June 19, 2020 PRC 100 % Operating VIE: Shanghai Qingke E-Commerce Co., Ltd. (“Q&K E- Commerce” or the “VIE”) August 2, 2013 PRC 100 % Holding and Operating Subsidiaries of the VIE: Shanghai Qingke Equipment Rental Co., Ltd. (“Q&K Rental”) March 17, 2015 PRC 100 % Operating Shanghai Qingke Public Rental Housing Leasing Management Co., Ltd. (“Qingke Public Rental”) November 5, 2014 PRC 100 % Operating Suzhou Qingke Information Technology Co., Ltd. (“Suzhou Qingke”) April 3, 2014 PRC 100 % Operating |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of financial statement amounts and balances of the VIE and its subsidiaries | The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances: As of September 30, 2020 2021 RMB RMB USD ASSETS Cash and cash equivalents 15,227 10,982 1,704 Restricted cash 8,887 2,893 449 Accounts receivable, net 1,943 370 57 Amounts due from related parties 168 — — Prepaid rent and deposit 51,281 571 89 Advances to suppliers 32,122 5,323 826 Other current assets 44,400 97,978 15,206 Property and equipment, net 358,022 38,940 6,043 Intangible assets, net 222,123 539 84 Land use rights, net 10,448 — — Other assets 57,024 108 17 Total assets 801,645 157,704 24,475 LIABILITIES Accounts payable 294,469 281,458 43,682 Amounts due to related parties 6,594 — — Deferred revenue 152,619 1,125 175 Short-term debt 540,808 256,773 39,851 Rental instalment loans 54,505 33 5 Deposits from tenants 82,191 1,422 221 Accrued expenses and other current liabilities 427,109 875,572 135,887 Long-term debt 464,920 201,041 31,201 Long-term deferred rent 212,054 — — Total liabilities 2,235,269 1,617,424 251,022 For the years ended September 30, 2019 2020 2021 RMB RMB RMB USD Net revenues 1,233,770 965,093 173,921 26,992 Net loss (177,738 ) (1,491,565 ) (375,470 ) (58,272 ) For the years ended September 30, 2019 2020 2021 RMB RMB RMB USD Net cash provided by (used in) operating activities 393,847 72,293 (108,705 ) (16,871 ) Net cash used in investing activities (713,653 ) (99,172 ) — — Net cash provided by (used in) financing activities 392,388 (95,948 ) 98,466 15,282 |
Summary of expected useful lives of property and equipment, net | The expected useful lives are as follows: Leasehold improvements Shorter of the lease term or their estimated useful lives Buildings 45 years Furniture, fixtures and equipment 5-8years Motor vehicles 8 years |
Schedule of estimated useful lives of intangible asset: | Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Apartment rental contracts Shorter of the lease term or 8 years Trademarks 8 years Software 10 years |
Summary of fair value of financial assets and liabilities accounted for at fair value on a recurring basis | The following table summarizes the fair value of the Group’s financial liabilities that are accounted for at fair value on a recurring basis, by level within the fair value hierarchy, as of September 30, 2020 and 2021: Fair Value Measurements at Reporting Date Using Description Fair Value as of September 30 RMB Quoted Prices in Active Markets for Identical Assets (Level 1) RMB Significant Other Observable Inputs (Level 2) RMB Significant Unobservable Inputs (Level 3) RMB Total Gain for the Year Ended September 30, RMB As of September 30, 2020 Contingent earn-out liabilities — — — — 97,417 As of September 30, 2021 Contingent liabilities for payable for asset acquisition 164,254 164,254 — — — |
Summary of assets measured at fair value on a non-recurring basis | The following table presents the Group’s assets measured at fair value on a non-recurring basis for the years ended September 30, 2019, 2020 and 2021: Fair Value Measurements at Reporting Date Using Years Ended September 30, Description Fair Value as of September 30 RMB Quoted Prices in Active Markets for Identical Assets (Level 1) RMB Significant Other Observable Inputs (Level 2) RMB Significant Unobservable Inputs (Level 3) RMB Total Loss for the Year Ended September 30, RMB 2019 Property and equipment 124,993 — — 124,993 46,213 2020 93,635 — — 93,635 313,354 2021 — — — — 199,575 2020 Apartment rental agreements 134,452 — — 134,452 425,341 2021 75,883 — — 75,883 — 2020 Trademarks 86,900 — — 86,900 108,071 2021 76,038 — — 76,038 — |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of other current assets | As of September 30, 2020 2021 Receivable from sales of buildings under construction (1) — 100,300 Due from a rental service company (2) 52,410 — Deductible input value added tax (3) 35,660 — Due from a service provider (4) 9,501 23,326 Deposit for share settlement (5) — 19,279 Others 4,232 438 101,803 143,343 (1) During the year ended September 30, 2021, the Group sold buildings under construction (See Note 4, Property and equipment, net (2) As of September 30, 2020, the balance due from a rental service company represented the reimbursement renovation costs due from the rental service company. The Group cooperated with the 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. During the year ended September 30, 2021, the Group terminated cooperation with the rental service company. Accordingly, the Group wrote off the outstanding balance of RMB 41,074, and net off the remaining balance due from the rental service company against instalment payable due to the rental service company. As of September 30, 2021, the Group had no balance due from the rental service company. (3) Because the Group made continuous loss over the past years, the Group assessed the input value added tax cannot be recovered. During the year ended September 30, 2021, the Group full impaired the balance of deductible input value added tax of RMB 76,531. (4) Upon asset acquisition with Beautiful House (Note 8), the Group engaged a third party service provider to provide apartment operation services to the Group. To support the operation services, the Group made interest free loans to the service provider and the loans are repayable on demand. (5) Upon settle payables due to Beautiful House arising from asset acquisition (Note 8), the Group paid a deposit of RMB 19,279 to Beautiful House, which is expected to get repaid upon share settlement. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment, net consist of the following: As of September 30, 2020 2021 Cost: Buildings 40,167 40,167 Leasehold improvements 230,473 - Furniture, fixtures and equipment used in apartments 108,914 - Vehicle 3,043 3,043 Office furniture, fixtures and equipment 20,504 20,456 403,101 63,666 Construction in progress 73,054 — Less: Accumulated depreciation (118,133 ) (24,726 ) 358,022 38,940 |
Summary of Disposed Property and Equipment | On the disposal date, the disposed property and equipment were comprised of the following. As of September 30, 2020 2021 Cost: Leasehold improvements 620,354 45,548 Furniture, fixtures and equipment used in apartments 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) | 12 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible assets, net as follows | Intangible assets, net consist of the following: As of September 30, 2020 2021 Cost: Apartment rental contracts 134,452 112,849 Trademarks 86,900 86,900 Software 2,275 2,275 223,627 202,024 Less: Accumulated amortization (1,504 ) (49,560 ) 222,123 152,464 |
Details of Group's amortization expenses for the five years | The following table sets forth the Group’s amortization expenses for the five years since September 30, 2021: Amortization expenses Year ending September 30, 2022 42,804 Year ending September 30, 2023 33,608 Year ending September 30, 2024 22,982 Year ending September 30, 2025 15,600 Year ending September 30, 2026 and thereafter 37,470 152,464 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of short-term and long-term debt | The short-term and long-term debt as of September 30, 2020 and 2021 were as follows: As of September 30, 2020 2021 Short-term debt: Short-term bank borrowings (1) 176,752 116,376 Long-term bank borrowings, current portion (1) 159,721 219,121 Capital lease and other financing arrangement payable, current portion (2) 201,835 — Other short-term payable (3) 223,828 223,208 762,136 558,705 Long-term debt: Long-term bank borrowings, non-current portion (1) 196,682 175,534 Capital lease and other financing arrangement payable, non-current portion (2) 242,719 - Other long term payable (3) 25,519 25,507 464,920 201,041 1,227,056 759,746 |
OPERATING COSTS (Tables)
OPERATING COSTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Operating Costs And Expenses [Abstract] | |
Summary of operating costs | Operating costs include all direct costs incurred in the operation of the leased properties. For the years ended September 30, 2019 2020 2021 Rental cost 975,342 813,773 642,354 Depreciation expenses 207,814 256,056 75,332 Personnel cost 23,698 77,392 224,125 Cost for value-added services and others 98,138 56,194 7,843 1,304,992 1,203,415 949,654 |
ASSET ACQUISITION (Tables)
ASSET ACQUISITION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net [Abstract] | |
Summary of fair value analysis of the net assets acquired | The allocation is as follows: RMB Apartment rental agreements 649,733 Trademarks 194,971 Liabilities assumed by the Group (349,665 ) 495,039 |
CONVERTIBLE NOTE, NET (Tables)
CONVERTIBLE NOTE, NET (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of warrants activity | A summary of warrants activity for the years ended September 30, 2021 and 2021 was as follows: Number of shares Weighted average life Expiration dates Balance of warrants outstanding as of September 30, 2019 — Grants of Warrants on July 29, 2020 104,871 5 years July 29,2025 Grants of Warrants on September 25, 2020 4,696 5 years September 25,2025 Balance of warrants outstanding as of September 30, 2020 109,567 4.84 years Grants of Warrants on October 14, 2020 4,815 5 years October 14, 2025 Grants of Warrants on October 20, 2020 13,848 5 years October 20, 2025 Grants of Warrants on October 29, 2020 15,619 5 years October 29, 2025 Grants of Warrants on December 15, 2020 28,718 5 years December 15, 2025 Grants of Warrants on February 25, 2021 23,152 5 years February 25, 2026 Grants of Warrants on April 7, 2021 15,870 5 years April 7, 2026 Grants of Warrants on May 18, 2021 8,599 5 years May 18, 2026 Grants of Warrants on June 21, 2021 13,575 5 years June 21, 2026 Grants of Warrants on July 13, 2021 37,177 5 years July 13, 2026 Grants of Warrants on July 30, 2021 8,865 5 years July 30, 2026 Grants of Warrants on September 8, 2021 6,556 5 years September 8, 2026 Grants of Warrants on September 30, 2021 6,772 5 years September 30, 2026 Balance of warrants outstanding as of September 30, 2021 293,133 4.25 years |
Summary of key assumption used in estimates of warrants | The key assumption used in estimates are as follows: July 29, 2020 September 25, 2020 October 14, 2020 October 20, 2020 October 29, 2020 December 15, 2020 February 25, 2021 April 7, 2021 May 18, 2021 Terms of warrants 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months 60 months Exercise price 11.4618 10.2214 9.3041 8.6653 7.6830 5.1676 3.5418 3.3271 2.0312 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, 2021 July 13, 2021 July 30, 2021 September 8, 2021 September 30, 2021 Terms of warrants 60 months 60 months 60 months 60 months 60 months Exercise price 2.0312 1.6072 1.6072 1.1944 1.1944 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 % |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Table) | 12 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | As of September 30, 2020 2021 Due to a rental service company (1) 182,542 603,884 Tenant deposits 83,682 102,355 Payable to a constructor for leasehold improvements 53,623 62,498 Other tax payable 51,832 67,491 Interest payable 13,435 106,439 Deferred rent 2,503 — Accrued utilities 22,513 25,503 Operation service payable 6,602 35,514 Accrued payroll and welfare 10,451 4,471 Others 16,235 16,727 443,418 1,024,882 (1) As of September 30, 2020, the balance of due to a rental service company primarily represented the rental deposits and prepaid rental fee collected from tenants. The rental deposits and prepaid rental fee belonged to the rental service company, for which the Group provided apartment operation services since April 2020. 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. 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 of RMB 472,662 to the account of “Accrued expenses and other current liabilities”. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of assumptions used to estimate fair values of share options granted | The following table presents the assumptions used to estimate the fair values of the share options granted in the years presented: April 2016 October 2016 July 2017 Risk-free rate of return 3.18 % 3.18 % 3.21 % Contractual life of option 10 years 10 years 8.4 years Estimated volatility rate 37 % 37 % 35 % Expected dividend yield 0 % 0 % 0 % Fair value of underlying ordinary shares US $ 0.03 US $ 0.04 US $ 0.05 |
Summary of option activity | A summary of option activity during the year ended September 30, 2021 is presented below: Number of Options Exercise Price RMB Remaining Contractual Life Outstanding, as of September 30, 2020 41,750,000 2 6.10 Granted — — — Exercised — — — Forfeited (7,550,000 ) 2 6.10 Outstanding, as of September 30, 2021 34,200,000 2 4.96 Vested or expected to vest as of September 30, 2021 34,200,000 2 4.96 |
Summary of total compensation expenses | For the years ended September 30, 2019, 2020 and 2021, the total compensation expenses were comprised of the following: For the years ended September 30, 2019 2020 2021 Selling and marketing expenses — 83 7 General and administrative expenses 8,173 15,596 15,991 Research and development expenses — 366 (192 ) 8,173 16,045 15,806 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the years indicated: For the years ended September 30, 2019 2020 2021 Numerator: Net loss attributable to Q&K International Group Limited (498,242 ) (1,533,592 ) (569,174 ) Deemed dividend (307,389 ) — — Net loss attributable to ordinary shareholders—basic and diluted (805,631 ) (1,533,592 ) (569,174 ) Denominator: Weighted average ordinary shares outstanding—basic and diluted 430,450,490 1,351,127,462 1,460,692,909 Net loss per share—basic and diluted (1.87 ) (1.14 ) (0.39 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of tax expense | Tax expense is comprised of the following: For the years ended September 30, 2019 2020 2021 Current tax 63 13 31 Deferred tax — — — 63 13 31 |
Summary of reconciliation between effective income tax rate and PRC statutory income tax rate | A reconciliation between the effective income tax rate and the PRC statutory income tax rate are as follows: For the years ended September 30, 2019 2020 2021 PRC statutory tax rate 25 % 25 % 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 )% Tax effect of other expenses that are not deductible in determining taxable profit (2.4 )% — (0.9 )% Effect of share-based compensation — (0.3 )% (0.7 )% Tax effect of loss on disposal of long-term assets — (7.6 )% (2.0 )% Effect of change in valuation allowance (22.6 )% (17.6 )% (16.4 )% (0.0 )% (0.0 )% (0.0 )% |
Summary of principal components of deferred income tax assets | The principal components of the Group’s deferred income tax assets as of September 30, 2020 and 2021 are as follows: As of September 30, 2020 2021 Deferred tax assets: Net losses carry forwards 268,477 215,193 Impairment loss on long-term assets 263,774 313,668 Allowance of doubtful accounts — 37,668 Other accrued expenses 21,322 22,746 Deferred rent 53,757 — Advertising expenses 12,592 12,592 Valuation allowance (619,922 ) (601,867 ) — — |
Summary of movement of valuation allowance | Movement of the valuation allowance is as follows: Balance as of September 30, 2018 233,191 Addition 105,773 Write off — Balance as of September 30, 2019 338,964 Addition 280,958 Write off — Balance as of September 30, 2020 619,922 Addition 94,809 Write off (112,864 ) Balance as of September 30, 2021 601,867 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related party relationship with the group | The following entities are considered to be related parties to the Group. The related parties mainly act as service providers and service recipients to the Group. The Group is not obligated to provide any type of financial support to these related parties. Related Party Relationship with the Group Shanghai Laiguan Property Management Co., Ltd. (“Laiguan”) (iii) An entity controlled by certain shareholders of the Group Shanghai Qingke Robot Technology Co., Ltd. (“Robot”)(i) An affiliate of Founder and CEO of the Group Shanghai Yijia Property Management Co., Ltd. (“Yijia Property”) (iii) An entity controlled by certain shareholders of the Group Shanghai Xulong Trading Co., Ltd. (“Xulong”)(ii) An entity controlled by the parents of Founder and CEO of the Group Shanghai Youzhen Information Technology Co., Ltd. (“Youzhen”) (iii) An entity controlled by the parents of Founder and CEO of the Group Shanghai Qingji Property Management Co., Ltd. (“Qingji”) (iii) An entity controlled by certain shareholders of the Group Key Space (S) Pte Ltd (“Key Space”) An entity controlled by certain shareholders of the Group ( i ) Robot ceased to be a related party of the Group in April 2019. (ii) Xulong ceased to be a related party of the Group in March 2019. (iii) Laiguan, Yijia, Youzhen and Qingji ceased to be a related party of the Group in January 2021. |
Summary of transactions with related parties | For the years ended September 30, 2019, 2020 and 2021, services provided by the related parties were RMB139,026, RMB 47,464 and RMB nil, respectively : For the years ended September 30, 2019 2020 2021 Purchases of property and equipment from Xulong. 12,205 — — Labor outsourcing service expense to Laiguan 43,003 25,059 — Labor outsourcing service expense to Qingji. 41,180 22,405 — Value-added service cost to Robot 28,336 — — Storage and logistic service expense to Xulong 4,582 — — Marketing service expense to Xulong. 9,720 — — 139,026 47,464 — As stated in Note 9, for the years ended September 30, 2020 and 2021 the Group issued convertible notes in exchange for cash of $24,018 (RMB 163,565) and $17,574 (RMB 113,236), 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. For the year ended September 30, 2020 and 2021, the Group accrued interest expenses of RMB 4,365 and RMB 49,512 on the convertible notes. As of September 30, 2020 and 2021, amounts due from related parties were RMB168 and RMB 201, respectively, and details are as follows: As of September 30, 2020 2021 Youzhen. 125 — Others 43 201 168 201 As of September 30, 2020 and 2021, amounts due to related parties were RMB 6,594 and RMB nil, respectively, and details are as follows: As of September 30, 2020 2021 Yijia Property 4,156 — Qingji 1,539 — Laiguan 882 — Others 17 — 6,594 — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary 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, 2021 were as follows: For the years ending September 30, 2022 559,843 2023 409,420 2024 222,260 2025 89,834 2026 44,175 Thereafter 4,995 Total 1,330,527 |
CONDENSED FINANCIAL STATEMENT_2
CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
CONDENSED BALANCE SHEETS | PARENT COMPANY CONDENSED BALANCE SHEETS (Renminbi in thousands, except share data and per share data, unless otherwise stated) As of September 30, 2020 2021 RMB RMB USD Assets Cash and cash equivalents 6,015 1,355 209 Other receivables, deposits and other assets — — — Amounts due from subsidiaries and consolidated VIEs 1,385,814 1,465,312 227,413 Total assets 1,391,829 1,466,667 227,622 Liabilities Short-term borrowings 221,328 210,776 32,712 Accrued expenses and other current liabilities 13,126 - - Contingent liabilities for payable for asset acquisition — 164,254 25,492 Convertible notes 206,251 313,870 48,712 Deficit of investments in subsidiaries and consolidated VIEs 2,955,202 3,272,273 507,849 Total liabilities 3,395,907 3,961,173 614,765 Shareholders’ deficit: Ordinary shares 92 110 17 Treasury stock (298,110 ) (5 ) (1 ) Additional paid-in capital 2,085,099 1,845,295 286,385 Accumulated deficits (3,809,516 ) (4,378,690 ) (679,562 ) Accumulated other comprehensive(loss) income 18,357 38,784 6,018 Total shareholders’ deficit (2,004,078 ) (2,494,506 ) (387,143 ) Total liabilities and shareholders’ deficit 1,391,829 1,466,667 227,622 |
CONDENSED STATEMENTS OF COMPREHENSIVE LOSS | PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (Renminbi in thousands, unless otherwise stated) For the Years Ended September 30, 2019 2020 2021 2021 RMB RMB RMB USD Selling, general and administrative expenses (15,888 ) (37,557 ) (27,302 ) (4,237 ) Interest income (expenses) 1,761 (42,507 ) (61,265 ) (9,508 ) Debt extinguishment loss — — (41,961 ) (6,512 ) Fair value change of contingent earn-out liabilities 42,404 97,417 — — Income (loss) before equity in losses of subsidiaries and consolidated VIEs and VIE’s subsidiaries 28,277 17,353 (130,528 ) (20,257 ) Equity in losses of subsidiaries and consolidated VIE and VIE’s subsidiaries (526,614 ) (1,550,994 ) (438,674 ) (68,082 ) Net loss (498,337 ) (1,533,641 ) (569,202 ) (88,339 ) Foreign currency translation adjustments (7,621 ) 24,265 20,427 3,170 Deemed dividend (307,389 ) — — — Comprehensive loss (813,347 ) (1,509,376 ) (548,775 ) (85,169 ) |
CONDENSED STATEMENTS OF CASH FLOWS | CONDENSED STATEMENTS OF CASH FLOWS (Renminbi in thousands, unless otherwise stated) For the Years Ended September 30, 2019 2020 2021 2021 RMB RMB RMB USD Net cash used in operating activities (20,149 ) (17,452 ) (30,664 ) (4,759 ) Net cash used in investing activities (460,663 ) (407,297 ) (87,232 ) (13,538 ) Net cash provided by financing activities 530,002 329,839 113,236 17,574 Effect of exchange rate changes 2,087 (232 ) — 47 Net increase (decrease) in cash and cash equivalents 51,277 (95,142 ) (4,660 ) (676 ) Cash and cash equivalents and restricted cash at the beginning of the year 49,880 101,157 6,015 886 Cash and cash equivalents and restricted cash at the end of the year 101,157 6,015 1,355 210 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Summary of significant subsidiaries, variable interest entity and the significant subsidiaries of the VIE (Detail) | 12 Months Ended |
Sep. 30, 2021 | |
QK365.com INC. (BVI) | Subsidiaries | |
Date of incorporation | Sep. 29, 2014 |
Place of incorporation | BVI |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding |
QingKe (China) Limited | Subsidiaries | |
Date of incorporation | Jul. 7, 2014 |
Place of incorporation | Hong Kong |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding |
Q&K Investment Consulting Co., Ltd. | Subsidiaries | |
Date of incorporation | Apr. 2, 2015 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding and Operating |
Qingke (Shanghai) Artificial Intelligence Technology Co., Ltd | Subsidiaries | |
Date of incorporation | May 13, 2019 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding and Operating |
Chengdu Liwu Apartment Management Co., Ltd | Subsidiaries | |
Date of incorporation | Jun. 19, 2020 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Operating |
Shanghai Qingke E-Commerce Co., Ltd. | Variable Interest Entity | |
Date of incorporation | Aug. 2, 2013 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Holding and Operating |
Shanghai Qingke Equipment Rental Co., Ltd. | Subsidiaries Variable Interest Entity | |
Date of incorporation | Mar. 17, 2015 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Operating |
Shanghai Qingke Public Rental Housing Leasing Management Co., Ltd. | Subsidiaries Variable Interest Entity | |
Date of incorporation | Nov. 5, 2014 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Operating |
Suzhou Qingke Information Technology Co., Ltd. | Subsidiaries Variable Interest Entity | |
Date of incorporation | Apr. 3, 2014 |
Place of incorporation | PRC |
Percentage of legal/beneficial ownership by the Company | 100.00% |
Principal activities | Operating |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||
Nov. 30, 2019CNY (¥)shares | Sep. 30, 2021$ / shares | Sep. 30, 2020$ / shares | Nov. 30, 2019USD ($)$ / sharesshares | Nov. 08, 2007 | |
Ordinary shares, par value | $ 0.00001 | $ 0.00001 | |||
IPO [Member] | |||||
Stock listed for IPO | ¥ 289,027 | $ 44,534 | |||
ADS [Member] | IPO [Member] | |||||
Common stock, shares unissued | shares | 2,700,000 | 2,700,000 | |||
Number of common shares for each unit of american depository receipt | 30 | 30 | |||
Ordinary shares, par value | $ 0.00001 | ||||
Sale of stock, price per share | $ 17 | ||||
ADS [Member] | Over-Allotment Option [Member] | |||||
Number of common shares for each unit of american depository receipt | 30 | 30 | |||
Ordinary shares, par value | $ 0.00001 | ||||
Sale of stock, price per share | $ 17 | ||||
Number of shares issued in transaction | shares | 405,000 | ||||
Jin Guangjie | |||||
Previous percentage held by founder | 50.00% |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Additional Information (Detail) $ in Thousands | Jul. 22, 2020RentalContractLeaseholdImprovement | Jul. 31, 2020CNY (¥)InvestorInstalment | Jul. 31, 2020USD ($)InvestorInstalment | Aug. 31, 2021CNY (¥) | Sep. 30, 2021CNY (¥)RentalContractshares | Sep. 30, 2021USD ($)RentalContractshares | Sep. 30, 2020CNY (¥)RentalContractshares | Sep. 30, 2020USD ($)RentalContractshares | Sep. 30, 2019CNY (¥) | Sep. 30, 2021USD ($)shares |
Accumulated deficits | ¥ 4,378,690,000 | ¥ 3,809,516,000 | $ 679,562 | |||||||
Net cash (used in) provided by operating activities | (109,661,000) | $ (17,017) | 54,841,000 | ¥ (88,189,000) | ||||||
Working capital | 1,758,736,000 | |||||||||
Number of investors | Investor | 2 | 2 | ||||||||
Number of instalments | Instalment | 21 | 21 | ||||||||
Proceeds from issuance of debt | ¥ 290,155,000 | $ 43,665 | ||||||||
Debt issuance cost | 0 | |||||||||
Proceeds of debt issuance costs | 113,236,000 | 163,565,000 | ||||||||
Additional proceeds from convertible debt | 49,103,000 | |||||||||
Doubtful accounts, wrote off | 19,463,000 | |||||||||
Interest expense | 127,377,000 | 134,092,000 | 113,917,000 | |||||||
Interest expense, capitalized | 0 | 19,542,000 | ||||||||
Amortization expense of land use rights | 286,000 | 286,000 | 286,000 | |||||||
Impairment loss | 199,575,000 | $ 30,974 | 846,766,000 | 46,213,000 | ||||||
Property and equipment, net | 38,940,000 | 358,022,000 | $ 6,043 | |||||||
Property and equipment, accumulated depreciation | 24,726,000 | 118,133,000 | ||||||||
Impairment loss | 199,575,000 | 313,354,000 | 46,213,000 | |||||||
Rental incentives | ¥ 5,695,000 | 12,921,000 | 72,367,000 | |||||||
Lease Option to Extend | The Group leases apartments from landlords usually for a period of five to six years which may be extended for an additional three or two years at the discretion of the landlords. | The Group leases apartments from landlords usually for a period of five to six years which may be extended for an additional three or two years at the discretion of the landlords. | ||||||||
Fixed rent, lock in period | 3 years | 3 years | ||||||||
Annual, non-compounding increase for the rest of the lease period | 5.00% | 5.00% | ||||||||
Rental expense | ¥ 100,962,000 | ¥ 642,354,000 | 813,773,000 | 1,003,572,000 | ||||||
Deferred rent, current | 2,503,000 | |||||||||
Long-term deferred rent | 212,054,000 | |||||||||
Advertising expenses | 10,773,000 | 39,583,000 | ||||||||
Expenses incurred for the plan | ¥ 3,383,000 | 18,283,000 | 20,051,000 | |||||||
Tax benefit likely of being realized up on settlement percentage | 0.00% | 0.00% | ||||||||
Significant unrecognized uncertain tax positions | ¥ 0 | ¥ 0 | ||||||||
Treasury stocks acquired | shares | 77,250,000 | 77,250,000 | 77,250,000 | 77,250,000 | ||||||
Treasury Stock, Value | ¥ 5,000 | ¥ 298,110,000 | $ 1 | |||||||
Convenience translation rate of USD1.00 | 6.4434 | 6.4434 | 6.4434 | |||||||
Contingent earn-out liabilities, gain | ¥ 97,417,000 | 42,404,000 | ||||||||
Share-based compensation | ¥ 15,806,000 | $ 2,453 | 16,045,000 | 8,173,000 | ||||||
Fair Value, Nonrecurring [Member] | ||||||||||
Property and equipment, net | 93,635,000 | 124,993,000 | ||||||||
Impairment loss | ¥ 199,575,000 | 313,354,000 | 46,213,000 | |||||||
Impairment of Leasehold | 425,341,000 | |||||||||
Trademarks, loss | 108,071,000 | |||||||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||||||||||
Property and equipment, net | ¥ 93,635,000 | ¥ 124,993,000 | ||||||||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Long-term Revenue Growth Rate | ||||||||||
Property and equipment, measurement input | 3 | 3 | 4 | |||||||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate | ||||||||||
Property and equipment, measurement input | 11 | 11 | 10 | |||||||
Convertible Notes Payable [Member] | ||||||||||
Convertible notes issued | ¥ 49,251,000 | |||||||||
Treasury stock | Debt Extinguishment Costs, to One Creditor who made Loans [Member] | ||||||||||
Shares issued | shares | 77,250,000 | 77,250,000 | ||||||||
Treasury stock | Pledge with SHRB [Member] | ||||||||||
Shares issued | shares | 77,100,000 | 77,100,000 | ||||||||
Share Repurchase [Member] | ||||||||||
Payment for the repurchase of initial public offering | ¥ 248,859,000 | |||||||||
Share Repurchase [Member] | Convertible Notes Payable [Member] | ||||||||||
Convertible notes issued | $ | $ 7,232 | |||||||||
Share Repurchase [Member] | Ordinary shares | ||||||||||
Repurchase of ordinary shares issued during initial public offer | shares | 77,250,000 | 77,250,000 | ||||||||
Education surtax | ||||||||||
Value-added taxes rate | 6.00% | 6.00% | ||||||||
Urban Maintenance | ||||||||||
Value-added taxes rate | 9.00% | 9.00% | ||||||||
Construction Tax | ||||||||||
Value-added taxes rate | 13.00% | 13.00% | ||||||||
Tenants who prepay rent of at least the first six months of the lease term [Member] | ||||||||||
Rental discount | 5.00% | 5.00% | ||||||||
Tenants who prepay rent of at least the first twelve months of the lease term [Member] | ||||||||||
Rental discount | 10.00% | 10.00% | ||||||||
Rental Contracts [Member] | ||||||||||
Number of reporting units | RentalContract | 25,375 | 25,375 | ||||||||
Leasehold improvements [Member] | ||||||||||
Capital lease other financing arrangement | ¥ 0 | ¥ 73,430,000 | ||||||||
Initial value of capital lease assets | 136,146,000 | |||||||||
Carrying value of capital lease other financing assets | 50,432,000 | |||||||||
Other financing payable | 0 | 371,124,000 | ||||||||
Aggregate of initial value for lease assets | 374,609,000 | |||||||||
Carrying value of lease assets | 138,764,000 | |||||||||
Property and equipment, net | 449,637,000 | |||||||||
Property and equipment, accumulated depreciation | 146,402,000 | |||||||||
Impairment loss | 132,972,000 | |||||||||
Furniture, fixtures and equipment [Member] | ||||||||||
Property and equipment, net | 212,483,000 | |||||||||
Property and equipment, accumulated depreciation | 49,861,000 | |||||||||
Impairment loss | ¥ 90,312,000 | |||||||||
Impairment of Leasehold | ¥ 199,575,000 | |||||||||
Great Alliance Co living Limited And Affiliates [Member] | ||||||||||
Number of Businesses Acquired | RentalContract | 72,000 | 72,000 | 72,000 | |||||||
Business combination revenue growth rate for valuation of trademarks acquired | 10.00% | 10.00% | ||||||||
Business combination discount rate for valuation of trademarks acquired | 19.00% | |||||||||
Great Alliance Co living Limited And Affiliates [Member] | Rental Agreement With Landlord [Member] | ||||||||||
Business combination revenue growth rate for rental agreements | 12.50% | 12.50% | ||||||||
Business combination discount rate for measuring rental agreements acquired | 19.00% | 19.00% | ||||||||
Great Alliance Co living Limited And Affiliates [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||
Business combination revenue growth rate for valuation of trademarks acquired | 3.00% | 3.00% | 8.00% | 8.00% | ||||||
Business combination discount rate for valuation of trademarks acquired | 11.00% | 11.00% | 11.00% | |||||||
Business combination increase of unit rental fee | 3.00% | 3.00% | ||||||||
Great Alliance Co living Limited And Affiliates [Member] | Rental Contracts [Member] | ||||||||||
Number of Businesses Acquired | LeaseholdImprovement | 72,000 | |||||||||
Variable Interest Entity | ||||||||||
Net cash (used in) provided by operating activities | ¥ (108,705,000) | $ (16,871) | ¥ 72,293,000 | ¥ 393,847,000 | ||||||
Percentage of consolidated revenues | 17.00% | 17.00% | 80.00% | 80.00% | 100.00% | |||||
Percentage of consolidated assets | 42.00% | 42.00% | 94.00% | 94.00% | ||||||
Percentage of consolidated liabilities | 57.00% | 57.00% | 79.00% | 79.00% | ||||||
Property and equipment, net | ¥ 38,940,000 | ¥ 358,022,000 | $ 6,043 | |||||||
Long-term deferred rent | ¥ 212,054,000 | |||||||||
Shanghai Qingke E-Commerce Co., Ltd. | Variable Interest Entity | ||||||||||
Equity interest held | 100.00% | 100.00% | ||||||||
Shanghai Qingke E-Commerce Co., Ltd. | Spousal Consent Letters [Member] | ||||||||||
Equity interest held | 10.47% | 10.47% | ||||||||
Maximum | ||||||||||
Proceeds from issuance of debt | ¥ 100,000,000 | |||||||||
Land use rights, remaining term of the land certificates | 50 years | 50 years | ||||||||
Lessor operating lease term | 26 months | 26 months | ||||||||
Rental discount, limit per month | ¥ 200,000 | |||||||||
Rent free period with landlords | 120 days | 120 days | ||||||||
Minimum | ||||||||||
Land use rights, remaining term of the land certificates | 30 years | 30 years | ||||||||
Lessor operating lease term | 12 months | 12 months | ||||||||
Rent free period with landlords | 90 days | 90 days | ||||||||
Tax benefit likely of being realized up on settlement percentage | 50.00% | 50.00% | ||||||||
Minimum | Shanghai Qingke E-Commerce Co., Ltd. | Exclusive Technology Service Agreement [Member] | ||||||||||
Percentage of net profit agreed to pay service fees | 100.00% | 100.00% |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of financial statement amounts and balances of the VIE and its subsidiaries (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | Sep. 30, 2021USD ($) | |
ASSETS | |||||
Cash and cash equivalents | ¥ 16,317 | ¥ 22,879 | ¥ 159,799 | $ 2,532 | |
Restricted cash | 2,935 | 8,887 | 91,015 | 456 | |
Accounts receivable, net | 370 | 1,943 | 57 | ||
Amounts due from related parties | 201 | 168 | 31 | ||
Prepaid rent and deposit | 571 | 51,281 | 89 | ||
Advances to suppliers | 12,933 | 16,043 | 2,007 | ||
Other current assets | 143,343 | 101,803 | 22,246 | ||
Property and equipment, net | 38,940 | 358,022 | 6,043 | ||
Intangible assets, net | 152,464 | 222,123 | 23,662 | ||
Land use rights, net | 10,448 | ||||
Other assets | 9,556 | 57,133 | 1,483 | ||
Total assets | 377,630 | 850,730 | 58,606 | ||
LIABILITIES | |||||
Accounts payable | 320,269 | 294,469 | 49,705 | ||
Amounts due to related parties | 6,594 | 6,594 | |||
Deferred revenue | 195,636 | 152,619 | 30,362 | ||
Short-term debt | 558,705 | 762,136 | 86,710 | ||
Rental instalment loans | 18,094 | 54,505 | 2,808 | ||
Deposits from tenants | 65,785 | 82,191 | 10,210 | ||
Accrued expenses and other current liabilities | 1,024,882 | 443,418 | 159,059 | ||
Long-term debt | 201,041 | 464,920 | 31,201 | ||
Long-term deferred rent | 212,054 | ||||
Total liabilities | 2,862,536 | 2,845,180 | 444,259 | ||
Net revenues | 1,036,206 | $ 160,817 | 1,207,963 | 1,233,770 | |
Net loss | (569,202) | (88,339) | (1,533,641) | (498,337) | |
Net cash provided by (used in) operating activities | (109,661) | (17,017) | 54,841 | (88,189) | |
Net cash used in investing activities | (6,486) | (1,000) | (138,670) | (351,450) | |
Net cash provided by (used in) financing activities | 101,601 | 15,769 | (134,924) | 569,569 | |
Variable Interest Entity | |||||
ASSETS | |||||
Cash and cash equivalents | 10,982 | 15,227 | 1,704 | ||
Restricted cash | 2,893 | 8,887 | 449 | ||
Accounts receivable, net | 370 | 1,943 | 57 | ||
Amounts due from related parties | 168 | ||||
Prepaid rent and deposit | 571 | 51,281 | 89 | ||
Advances to suppliers | 5,323 | 32,122 | 826 | ||
Other current assets | 97,978 | 44,400 | 15,206 | ||
Property and equipment, net | 38,940 | 358,022 | 6,043 | ||
Intangible assets, net | 539 | 222,123 | 84 | ||
Land use rights, net | 10,448 | ||||
Other assets | 108 | 57,024 | 17 | ||
Total assets | 157,704 | 801,645 | 24,475 | ||
LIABILITIES | |||||
Accounts payable | 281,458 | 294,469 | 43,682 | ||
Amounts due to related parties | 6,594 | ||||
Deferred revenue | 1,125 | 152,619 | 175 | ||
Short-term debt | 256,773 | 540,808 | 39,851 | ||
Rental instalment loans | 33 | 54,505 | 5 | ||
Deposits from tenants | 1,422 | 82,191 | 221 | ||
Accrued expenses and other current liabilities | 875,572 | 427,109 | 135,887 | ||
Long-term debt | 201,041 | 464,920 | 31,201 | ||
Long-term deferred rent | 212,054 | ||||
Total liabilities | 1,617,424 | 2,235,269 | $ 251,022 | ||
Net revenues | 173,921 | 26,992 | 965,093 | 1,233,770 | |
Net loss | (375,470) | (58,272) | (1,491,565) | (177,738) | |
Net cash provided by (used in) operating activities | (108,705) | (16,871) | 72,293 | 393,847 | |
Net cash used in investing activities | (99,172) | (713,653) | |||
Net cash provided by (used in) financing activities | ¥ 98,466 | $ 15,282 | ¥ (95,948) | ¥ 392,388 |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of expected useful lives of property and equipment, net (Detail) | 12 Months Ended |
Sep. 30, 2021 | |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | Shorter of the lease term or their estimated useful lives |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | 45 years |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | 8 years |
Minimum | Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | 5 years |
Maximum | Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, expected useful lives | 8 years |
SUMMARY OF PRINCIPAL ACCOUNTI_7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Schedule of estimated useful lives of intangible asset (Detail) | 12 Months Ended |
Sep. 30, 2021 | |
Apartment rental contracts [Member] | |
Impaired Intangible Assets [Line Items] | |
Finite-lived intangible assets | Shorter of the lease term or 8 years |
Software [Member] | |
Impaired Intangible Assets [Line Items] | |
Finite-lived intangible assets | 8 years |
Trademarks [Member] | |
Impaired Intangible Assets [Line Items] | |
Finite-lived intangible assets | 10 years |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of fair value of financial assets and liabilities accounted for at fair value on a recurring basis (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liabilities, gain | ¥ 97,417 | ¥ 42,404 | |
Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liabilities, gain | ¥ 97,417 | ||
Fair Value, Recurring | Asset Acquisition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liabilities | ¥ 164,254 | ||
Fair Value, Inputs, Level 1 | Fair Value, Recurring | Asset Acquisition | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent earn-out liabilities | ¥ 164,254 |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Summary of assets measured at fair value on a non-recurring basis (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021CNY (¥) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | Sep. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Property and equipment | ¥ 38,940 | ¥ 358,022 | $ 6,043 | |
Property and equipment, loss | 199,575 | 313,354 | ¥ 46,213 | |
Fair Value, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Property and equipment | 93,635 | 124,993 | ||
Apartment rental agreements | 75,883 | 134,452 | ||
Trademarks | 76,038 | 86,900 | ||
Property and equipment, loss | 199,575 | 313,354 | 46,213 | |
Apartment rental agreements loss | 425,341 | |||
Trademarks, loss | 108,071 | |||
Fair Value, Inputs, Level 3 | Fair Value, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Property and equipment | 93,635 | ¥ 124,993 | ||
Apartment rental agreements | 75,883 | 134,452 | ||
Trademarks | ¥ 76,038 | ¥ 86,900 |
OTHER CURRENT ASSETS - Summary
OTHER CURRENT ASSETS - Summary of other current assets (Detail) $ in Thousands | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) |
Other Assets [Abstract] | |||
Receivable from sales of buildings under construction | ¥ 100,300,000 | ||
Due from a rental service company | 0 | ¥ 52,410,000 | |
Deductible input value added tax | 35,660,000 | ||
Due from a service provider | 23,326,000 | 9,501,000 | |
Deposit for share settlement | 19,279,000 | ||
Others | 438,000 | 4,232,000 | |
Total | ¥ 143,343,000 | $ 22,246 | ¥ 101,803,000 |
OTHER CURRENT ASSETS - Summar_2
OTHER CURRENT ASSETS - Summary of other current assets (Parenthetical) (Detail) - CNY (¥) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Assets [Abstract] | |||
Proceeds from sale of buildings | ¥ 100,300,000 | ¥ 100,300,000 | |
Due from a rental service company, written off | 41,074,000 | 41,074,000 | |
Due from a rental service company | 0 | 0 | ¥ 52,410,000 |
Impairment of deductible input value added tax | 76,531,000 | ||
Deposit for share settlement | ¥ 19,279,000 | ¥ 19,279,000 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Summary of property and equipment, net (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | ¥ 38,940 | $ 6,043 | ¥ 358,022 |
Less: Accumulated depreciation | (24,726) | (118,133) | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 40,167 | 40,167 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 230,473 | ||
Property and equipment, net | 449,637 | ||
Less: Accumulated depreciation | (146,402) | ||
Office furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 108,914 | ||
Property and equipment, net | 212,483 | ||
Less: Accumulated depreciation | (49,861) | ||
Vehicle | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 3,043 | 3,043 | |
Office furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | ¥ 20,456 | 20,504 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | ¥ 73,054 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired | ¥ 22,540 | ||||
Proceeds from sale of buildings | ¥ 100,300 | ¥ 100,300 | |||
Depreciation expenses | 20,039 | ¥ 187,092 | ¥ 214,192 | ||
Property and equipment, loss | 199,575 | 313,354 | ¥ 46,213 | ||
Property and equipment costs | 68,428 | 68,428 | 874,059 | ||
Gain (loss) on disposition of Propert and equipment | 19,448 | ¥ 454,224 | |||
Buildings Under Construction | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment costs | ¥ 81,431 | ¥ 81,431 | |||
Share Consideration In Exchange for the Assets | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of shares of equity interests issued | 7,662,060 |
PROPERTY AND EQUIPMENT, NET -_2
PROPERTY AND EQUIPMENT, NET - Summary of Disposed Property and Equipment (Detail) - CNY (¥) ¥ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment costs | ¥ 68,428 | ¥ 874,059 |
Less: Accumulated depreciation | (42,012) | (419,835) |
Property plant and equipment net | 26,416 | 454,224 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment costs | 45,548 | 620,354 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment costs | 22,830 | 253,205 |
Office furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment costs | ¥ 50 | ¥ 500 |
INTANGIBLE ASSETS, NET - Summar
INTANGIBLE ASSETS, NET - Summary of Intangible assets, net (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) |
Schedule Of Intangible Asset [Line Items] | |||
Cost | ¥ 202,024 | ¥ 223,627 | |
Less: Accumulated amortization | (49,560) | (1,504) | |
Intangible assets, net | 152,464 | $ 23,662 | 222,123 |
Apartment rental contracts [Member] | |||
Schedule Of Intangible Asset [Line Items] | |||
Cost | 112,849 | 134,452 | |
Trademarks [Member] | |||
Schedule Of Intangible Asset [Line Items] | |||
Cost | 86,900 | 86,900 | |
Software [Member] | |||
Schedule Of Intangible Asset [Line Items] | |||
Cost | ¥ 2,275 | ¥ 2,275 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule Of Intangible Asset [Line Items] | |||
Amortization of Intangible Assets | ¥ 58,934,000 | ¥ 75,660,000 | ¥ 178,000 |
Impairment loss of intangible assets | 533,412,000 | ||
Apartment rental contracts [Member] | |||
Schedule Of Intangible Asset [Line Items] | |||
Disposal of intangible assets | 10,725,000 | 14,756,000 | |
Consideration from disposal of Intangible assets | 0 | 0 | |
Loss from disposal of intangible assets | ¥ 10,725,000 | ¥ 14,756,000 |
INTANGIBLE ASSETS, NET - Detail
INTANGIBLE ASSETS, NET - Details of Group's amortization expenses for the five years (Detail) ¥ in Thousands | Sep. 30, 2021CNY (¥) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
Year ending September 30, 2022 | ¥ 42,804 |
Year ending September 30, 2023 | 33,608 |
Year ending September 30, 2024 | 22,982 |
Year ending September 30, 2025 | 15,600 |
Year ending September 30, 2026 and thereafter | 37,470 |
Total | ¥ 152,464 |
DEBT - Summary of short-term an
DEBT - Summary of short-term and long-term debt (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) |
Short-term debt: | |||
Short-term bank borrowings | ¥ 116,376 | ¥ 176,752 | |
Long-term bank borrowings, current portion | 219,121 | 159,721 | |
Capital lease and other financing arrangement payable, current portion | 201,835 | ||
Other short-term payable | 223,208 | 223,828 | |
Short-term debt | 558,705 | $ 86,710 | 762,136 |
Long-term debt: | |||
Long-term bank borrowings,non-current portion | 175,534 | 196,682 | |
Capital lease and other financing arrangement payable,non-current portion | 242,719 | ||
Other long term payable | 25,507 | 25,519 | |
Long-term debt | 201,041 | $ 31,201 | 464,920 |
Short-term and long-term debt | ¥ 759,746 | ¥ 1,227,056 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) $ in Thousands | Sep. 27, 2021CNY (¥) | Dec. 17, 2020CNY (¥) | May 28, 2020CNY (¥) | Jun. 13, 2017CNY (¥) | Dec. 31, 2020CNY (¥)shares | Apr. 30, 2020CNY (¥) | Sep. 30, 2021CNY (¥)shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020CNY (¥)shares | Sep. 30, 2021USD ($) | Apr. 30, 2021CNY (¥) | Nov. 30, 2020CNY (¥) | Sep. 26, 2020CNY (¥) | Jul. 31, 2020CNY (¥) | Jun. 27, 2019CNY (¥) | Jun. 27, 2019USD ($) | Feb. 21, 2019CNY (¥) | Sep. 26, 2016CNY (¥) |
Debt Instrument [Line Items] | ||||||||||||||||||
Treasury stock shares pledged on loans | shares | 77,100,000 | 77,100,000 | 77,100,000 | |||||||||||||||
Long-term bank borrowings, current portion | ¥ 219,121,000 | ¥ 159,721,000 | ||||||||||||||||
Long-term debt | ¥ 201,041,000 | ¥ 464,920,000 | $ 31,201 | |||||||||||||||
Treasury stocks acquired | shares | 77,250,000 | 77,250,000 | 77,250,000 | |||||||||||||||
Debt extinguishment loss | ¥ (41,964,000) | $ (6,512) | ||||||||||||||||
Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 25.00% | 25.00% | ||||||||||||||||
Other Long Term Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 5.00% | 5.00% | ||||||||||||||||
Other Short Term Debt | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 6.00% | 6.00% | ||||||||||||||||
Other Short Term Debt | Minimum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 5.00% | 5.00% | ||||||||||||||||
Buildings [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Collateral Deposit | ¥ 33,626,000 | |||||||||||||||||
Leasehold improvements [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Capital lease other financing arrangement | ¥ 0 | ¥ 73,430,000 | ||||||||||||||||
Shanghai Xiangzi Financial Information Service Company Ltd | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 8.75% | 8.75% | ||||||||||||||||
Long-term Debt | ¥ 193,929,000 | |||||||||||||||||
Shanghai Xiangzi Financial Information Service Company Ltd | Interest Rate Of Eight Point Seven Five Percent [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term Debt | ¥ 27,000,000 | |||||||||||||||||
Shanghai Xiangzi Financial Information Service Company Ltd | Interest Rate Of Seven Point Five Percent [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 7.50% | 7.50% | ||||||||||||||||
China Merchants Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term Debt | ¥ 10,326,000 | |||||||||||||||||
Weighted average interest rate | 5.39% | 5.39% | 5.39% | |||||||||||||||
Proceeds from borrowings | ¥ 17,210,000 | |||||||||||||||||
Debt term | 10 years | |||||||||||||||||
Long-term bank borrowings, current portion | ¥ 1,721,000 | |||||||||||||||||
Long-term debt | 8,605,000 | |||||||||||||||||
18-Month Borrowing Agreement Entered on December 17, 2021 | Zhejiang MY Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | ¥ 26,652,000 | |||||||||||||||||
Debt annual interest rate | 8.50% | |||||||||||||||||
Long-term Debt | ¥ 24,652,000 | |||||||||||||||||
18-Month Borrowing Agreement Entered on December 17, 2021 | Zhejiang MY Bank | First 6 Months | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Monthly repayment | ¥ 400,000 | |||||||||||||||||
18-Month Borrowing Agreement Entered on December 17, 2021 | Zhejiang MY Bank | Remaining Twelve Months | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Monthly repayment | ¥ 2,224,000 | |||||||||||||||||
Revolving Credit Facility | Shanghai Huarui Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | ¥ 2,000,000,000 | ¥ 300,000,000 | ||||||||||||||||
Debt annual interest rate | 7.50% | |||||||||||||||||
Weighted average interest rate | 7.90% | 7.50% | 7.90% | |||||||||||||||
Revolving Credit Facility | Shanghai Huarui Bank | Rental Installment Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | ¥ 1,000,000,000 | |||||||||||||||||
Line of credit | ¥ 3,507,000 | |||||||||||||||||
Revolving Credit Facility | China CITIC Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | ¥ 650,000,000 | |||||||||||||||||
Collateral Deposit | $ | $ 105,000 | |||||||||||||||||
Bank Borrowing Agreement One | Shanghai Xiangzi Financial Information Service Company Ltd | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 7.50% | |||||||||||||||||
Debt instrument carrying amount | ¥ 25,929,000 | ¥ 27,000,000 | ||||||||||||||||
Long term debt instrument maturity date | Mar. 31, 2022 | |||||||||||||||||
Debt instrument, maturity date | Dec. 31, 2022 | |||||||||||||||||
Bank Borrowing Agreement Two | Shanghai Xiangzi Financial Information Service Company Ltd | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 7.50% | |||||||||||||||||
Debt instrument carrying amount | ¥ 9,000,000 | ¥ 132,000,000 | ||||||||||||||||
Long term debt instrument maturity date | Mar. 31, 2023 | |||||||||||||||||
Debt instrument, maturity date | Dec. 31, 2022 | |||||||||||||||||
Eighteen Month Revolving Bank Credit Facility [Member] | Shanghai Huarui Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | ¥ 108,000,000 | |||||||||||||||||
Long-term Debt | 90,400,000 | |||||||||||||||||
Weighted average interest rate | 8.50% | |||||||||||||||||
Line of credit facility, Expiration date | Sep. 26, 2022 | |||||||||||||||||
Eighteen Month Revolving Bank Credit Facility [Member] | China Merchants Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | ¥ 91,400,000 | |||||||||||||||||
Eighteen Month Bank Loan Entered On April Thirty Two Thousand Twenty [Member] | Shanghai Huarui Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 7.50% | |||||||||||||||||
Long-term Debt | 50,000,000 | ¥ 50,000,000 | ||||||||||||||||
Long term debt instrument maturity date | Feb. 28, 2022 | |||||||||||||||||
Proceeds from borrowings | ¥ 50,000,000 | |||||||||||||||||
Eighteen Month Bank Loan Entered On May Twenty Eight Two Thousand Twenty [Member] | Shanghai Huarui Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt annual interest rate | 7.50% | |||||||||||||||||
Long-term Debt | ¥ 50,000,000 | ¥ 50,000,000 | ||||||||||||||||
Long term debt instrument maturity date | Feb. 28, 2022 | |||||||||||||||||
Proceeds from borrowings | ¥ 50,000,000 |
OPERATING COSTS - Summary of op
OPERATING COSTS - Summary of operating costs (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Costs And Expenses [Abstract] | |||
Rental cost | ¥ 642,354 | ¥ 813,773 | ¥ 975,342 |
Depreciation expenses | 75,332 | 256,056 | 207,814 |
Personnel cost | 224,125 | 77,392 | 23,698 |
Cost for value-added services and others | 7,843 | 56,194 | 98,138 |
Total | ¥ 949,654 | ¥ 1,203,415 | ¥ 1,304,992 |
ASSET ACQUISITION - Additional
ASSET ACQUISITION - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jul. 22, 2020CNY (¥)RentalContractLeaseholdImprovementshares | Jul. 22, 2020USD ($)RentalContractLeaseholdImprovementshares | May 31, 2021$ / sharesshares | Sep. 30, 2021CNY (¥)RentalContractshares | Sep. 30, 2021USD ($)RentalContractshares | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Business Acquisition [Line Items] | |||||||||
Payments to acquire businesses, gross | ¥ 6,484 | $ 1,000 | ¥ 39,498 | $ 5,800 | |||||
Contingent liabilities for payable for asset acquisition | ¥ 164,254 | $ 25,492 | |||||||
Ordinary shares | |||||||||
Business Acquisition [Line Items] | |||||||||
Ordinary shares subject to make-whole cash-settled provision | shares | 57,786,458 | 57,786,458 | |||||||
Ordinary shares subject to possible redemption | shares | 20,860,749 | 20,860,749 | |||||||
Ordinary shares issued | shares | 57,786,458 | 57,786,458 | |||||||
Great Alliance Co living Limited And Affiliates [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of businesses acquired | RentalContract | 72,000 | 72,000 | 72,000 | 72,000 | |||||
Great Alliance Co living Limited And Affiliates [Member] | Rental Contracts [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of businesses acquired | LeaseholdImprovement | 72,000 | 72,000 | |||||||
Beautiful House | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to acquire businesses, gross | ¥ 205,306 | $ 29,000 | |||||||
Business acquisition, transaction costs | ¥ | 0 | ||||||||
Business combination, consideration payable | 165,808 | $ 23,200 | |||||||
Cash consideration | 289,733 | $ 42,673 | ¥ 289,733 | ||||||
Liabilities assumed by the Company | ¥ | 349,665 | ¥ 349,665 | |||||||
Business combination recognised identifiable assets acquired and liabilities assumed apartment rental agreements | ¥ | 649,733 | ||||||||
Business combination recognised identifiable assets acquired and liabilities assumed trademark | ¥ | 194,971 | ||||||||
Business combnation consideration payable after deduction of liabilities | ¥ | ¥ 495,039 | ||||||||
Beautiful House | Fair Value, Inputs, Level 3 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination recognised identifiable assets acquired and liabilities assumed apartment rental agreements | ¥ | 289,591 | ||||||||
Business combination recognised identifiable assets acquired and liabilities assumed trademark | ¥ | ¥ 86,900 | ||||||||
Beautiful House | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty One [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination consideration payable in shares instalment percentage | 30.00% | 30.00% | |||||||
Beautiful House | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty Two [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination consideration payable in shares instalment percentage | 40.00% | 40.00% | |||||||
Beautiful House | Lock In Period Expiring On Thirtieth June Two Thousand And Twenty Three [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination consideration payable in shares instalment percentage | 30.00% | 30.00% | |||||||
Beautiful House | Ordinary shares | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 186,375,850 | ||||||||
Ordinary shares oblige the company to make up shortfall | shares | 57,786,458 | ||||||||
Ordinary shares redeemable | shares | 20,860,749 | ||||||||
Temporary equity redemption price per share | $ / shares | $ 0.4015 | ||||||||
Business combination maximum per share value to be collected by sellers | $ / shares | $ 0.4014 | ||||||||
Beautiful House | Ordinary shares | Class A ordinary shares [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 128,589,392 | 128,589,392 |
ASSET ACQUISITION - Summary of
ASSET ACQUISITION - Summary of fair value analysis of the net assets acquired (Detail) - Beautiful House [Member] - CNY (¥) ¥ in Thousands | Sep. 30, 2021 | Jul. 22, 2020 |
Business 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 - Additio
CONVERTIBLE NOTE, NET - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jul. 22, 2020USD ($) | Sep. 30, 2021CNY (¥)trading_days | Sep. 30, 2021USD ($)trading_days | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($)$ / shares | Jul. 31, 2017$ / shares | Oct. 31, 2016$ / shares | Apr. 30, 2016$ / shares |
Debt Instrument [Line Items] | |||||||||||
Warrants and rights granted weight average life | 5 years | ||||||||||
Debt instrument conversion price percentage | 80.00% | 80.00% | |||||||||
Share price | $ / shares | $ 0.05 | $ 0.04 | $ 0.03 | ||||||||
Debt instrument convertible threshold consecutive trading days | trading_days | 60 | 60 | |||||||||
Average daily trading volume | $ | $ 15,000 | ||||||||||
Percentage of warrants to purchase ADS | 4.00% | 4.00% | 4.00% | ||||||||
Proceeds from convertible notes | ¥ 113,236 | $ 17,574 | ¥ 163,565 | $ 24,018 | |||||||
Adjustments to additional paid in capital warrants issued | ¥ | 546 | 6,564 | ¥ 7,176 | ||||||||
Accretion of interest expenses | ¥ 1,988 | $ 309 | ¥ 214 | ¥ 15,777 | |||||||
Warrants to subscribe ADS [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Class of warrants or rights exercise price as a percentage of volume weighted average price of the shares | 110.00% | 110.00% | 110.00% | ||||||||
Number of tradings days for determning the share price | 60 days | 60 days | |||||||||
ADS [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Minimum threshold on offering value | $ | $ 50,000 | ||||||||||
Minimum threshold on period for offering after the debt issuance date | 18 months | 18 months | |||||||||
Share price | $ / shares | $ 22 | ||||||||||
July Convertible Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Convertible notes term yield percentage | 18.12% | 18.12% | 18.12% | ||||||||
September Convertible Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Convertible notes term yield percentage | 25.58% | 25.58% | 25.58% | ||||||||
July And September Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fair value of convertible notes | ¥ | ¥ 264,082 | ¥ 264,082 | |||||||||
Proceeds from convertible notes | ¥ | 5,369 | ||||||||||
Warrants and notes discount on notes | ¥ | ¥ 7,176 | ||||||||||
Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 25.00% | 25.00% | 25.00% | ||||||||
Notes payable series 1 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 4.00% | 4.00% | 4.00% | ||||||||
Notes payable series 2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 6.00% | 6.00% | 6.00% | ||||||||
Notes payable series 3 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 7.00% | 7.00% | 7.00% | ||||||||
Notes payable series 4 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 8.00% | 8.00% | 8.00% | ||||||||
Convertible Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ | $ 100,000 | ||||||||||
Debt term | 4 years | ||||||||||
Convertible Debt [Member] | July Convertible Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt conversion price | $ / shares | $ 11.2508 | ||||||||||
Convertible Debt [Member] | September Convertible Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt conversion price | $ / shares | $ 10.1003 | ||||||||||
Convertible Debt [Member] | Series 1 note [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | ¥ 326,790 | ¥ 326,790 | $ 48,824 | ||||||||
Convertible Debt [Member] | Series 1 note [Member] | Interest payable in cash annually [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 7.50% | 7.50% | 7.50% | ||||||||
Convertible Debt [Member] | Series 1 note [Member] | Interest payable in cash at maturity [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 7.50% | 7.50% | 7.50% | ||||||||
Convertible Debt [Member] | Series Two Note | Interest payable in cash annually [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 3.50% | 3.50% | 3.50% | ||||||||
Convertible Debt [Member] | Series Two Note | Interest payable in cash at maturity [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt annual interest rate | 13.50% | 13.50% | 13.50% |
CONVERTIBLE NOTE, NET - Summary
CONVERTIBLE NOTE, NET - Summary of warrants activity (Detail) - shares | Jul. 22, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Number of shares, Beginning balance | 109,567 | 0 | |
Number of shares, Ending balance | 293,133 | 109,567 | |
Weighted average life, Beginning balance | 4 years 10 months 2 days | ||
Weighted average life, Grants | 5 years | ||
Weighted average life, Ending balance | 4 years 3 months | 4 years 10 months 2 days | |
Warrant Expiry Date July 29, 2025 [Member] | |||
Number of shares, Grants | 104,871 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jul. 29, 2025 | ||
Warrant Expiry Date September 25, 2025 [Member] | |||
Number of shares, Grants | 4,696 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Sep. 25, 2025 | ||
Warrant Expiry Date October 14, 2025 [Member] | |||
Number of shares, Grants | 4,815 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Oct. 14, 2025 | ||
Warrant Expiry Date October 20, 2025 [Member] | |||
Number of shares, Grants | 13,848 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Oct. 20, 2025 | ||
Warrant Expiry Date October 29, 2025 [Member] | |||
Number of shares, Grants | 15,619 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Oct. 29, 2025 | ||
Warrant Expiry Date December 15, 2025 [Member] | |||
Number of shares, Grants | 28,718 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Dec. 15, 2025 | ||
Warrant Expiry Date February 25, 2026 [Member] | |||
Number of shares, Grants | 23,152 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Feb. 25, 2026 | ||
Warrant Expiry Date April 7, 2026 [Member] | |||
Number of shares, Grants | 15,870 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Apr. 7, 2026 | ||
Warrant Expiry Date May 18, 2026 [Member] | |||
Number of shares, Grants | 8,599 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | May 18, 2026 | ||
Warrant Expiry Date June 21, 2026 [Member] | |||
Number of shares, Grants | 13,575 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jun. 21, 2026 | ||
Warrant Expiry Date July 13, 2026 [Member] | |||
Number of shares, Grants | 37,177 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jul. 13, 2026 | ||
Warrant Expiry Date July 30, 2026 [Member] | |||
Number of shares, Grants | 8,865 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Jul. 30, 2026 | ||
Warrant Expiry Date September 8, 2026 [Member] | |||
Number of shares, Grants | 6,556 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Sep. 8, 2026 | ||
Warrant Expiry Date September 30, 2026 [Member] | |||
Number of shares, Grants | 6,772 | ||
Weighted average life, Grants | 5 years | ||
Expiration dates, Grants | Sep. 30, 2026 |
CONVERTIBLE NOTE, NET - Summa_2
CONVERTIBLE NOTE, NET - Summary of key assumption used in estimates of warrants (Detail) | Sep. 30, 2021mo | Sep. 08, 2021mo | Jul. 30, 2021mo | Jul. 13, 2021mo | Jun. 21, 2021mo | May 18, 2021mo | Apr. 07, 2021mo | Feb. 25, 2021mo | Dec. 15, 2020mo | Oct. 29, 2020mo | Oct. 20, 2020mo | Oct. 14, 2020mo | Sep. 25, 2020mo | Jul. 29, 2020mo |
Terms of warrants | ||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||
Fair Value Measurement | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 60 |
Exercise price | ||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||
Fair Value Measurement | 1.1944 | 1.1944 | 1.6072 | 1.6072 | 2.0312 | 2.0312 | 3.3271 | 3.5418 | 5.1676 | 7.6830 | 8.6653 | 9.3041 | 10.2214 | 11.4618 |
Risk free rate of interest | ||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||
Fair Value Measurement | 0.76 | 0.76 | 0.52 | 0.52 | 0.69 | 0.69 | 0.61 | 0.58 | 0.28 | 0.29 | 0.29 | 0.29 | 0.21 | 0.21 |
Divided yield | ||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||
Fair Value Measurement | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Annualized volatility of underlying stock | ||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||||||
Fair Value Measurement | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 41 | 40 | 39 | 39 | 39 | 39 | 40 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule Of Accounts Payable And Accrued Liabilities (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) |
Accrued Liabilities Current [Abstract] | |||
Due to a rental service company | ¥ 603,884 | ¥ 182,542 | |
Tenant deposits | 102,355 | 83,682 | |
Payable to a constructor for leasehold improvements | 62,498 | 53,623 | |
Other tax payable | 67,491 | 51,832 | |
Interest payable | 106,439 | 13,435 | |
Deferred rent | 2,503 | ||
Accrued utilities | 25,503 | 22,513 | |
Operation service payable | 35,514 | 6,602 | |
Accrued payroll and welfare | 4,471 | 10,451 | |
Others | 16,727 | 16,235 | |
Total | ¥ 1,024,882 | $ 159,059 | ¥ 443,418 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule Of Accounts Payable And Accrued Liabilities (Parenthetical) (Detail) ¥ in Thousands | Sep. 30, 2021CNY (¥) |
Accrued Liabilities Current [Abstract] | |
Capital lease payable and other financing payable | ¥ 472,662 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) | Apr. 01, 2019$ / sharesshares | Dec. 01, 2018$ / sharesshares | Apr. 01, 2018$ / sharesshares | Nov. 12, 2017$ / sharesshares | Mar. 16, 2017$ / sharesshares | Oct. 18, 2016shares | Oct. 17, 2016shares | Apr. 21, 2016shares | Jul. 31, 2019CNY (¥) | Jul. 31, 2017$ / sharesshares | Jul. 31, 2017¥ / sharesshares | Aug. 31, 2014shares | Sep. 30, 2021CNY (¥)shares | Sep. 30, 2021$ / sharesshares | Sep. 30, 2020CNY (¥)shares | Sep. 30, 2019CNY (¥) | Oct. 18, 2016$ / shares | Oct. 18, 2016¥ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Share based compensation stock options outstanding number | 34,200,000 | 34,200,000 | 41,750,000 | |||||||||||||||
Number of Options - Vested or expected to vest | 34,200,000 | 34,200,000 | ||||||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 15,806,000 | ¥ 16,045,000 | ¥ 8,173,000 | |||||||||||||||
IPO [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 0 | |||||||||||||||||
Stock Option A | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Share options vested | 0 | |||||||||||||||||
Exercise of share-based compensation, shares | 0 | |||||||||||||||||
Share based compensation stock options outstanding number | 10,250,000 | 10,250,000 | 10,600,000 | |||||||||||||||
Number of Options - Vested or expected to vest | 10,250,000 | 10,250,000 | 10,600,000 | |||||||||||||||
Share based compensation stock options outstanding weighted average intrinsic value | ¥ | 0 | |||||||||||||||||
Stock Option A | Maximum | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Percentage of total converted ordinary shares each year after the exercise date subject to restriction from transferring | 25.00% | |||||||||||||||||
Stock Option A | Management, Employees and Non employees | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Share options granted | 26,860,000 | 26,860,000 | 26,860,000 | 26,860,000 | ||||||||||||||
Share options granted, exercise price per share | (per share) | $ 0.31 | ¥ 2 | ||||||||||||||||
Share options granted, vesting percentage on the first and second anniversary after the IPO date | 50.00% | |||||||||||||||||
Stock Option B | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Share based compensation stock options outstanding number | 23,950,000 | 23,950,000 | 31,150,000 | |||||||||||||||
Share based compensation stock options outstanding weighted average intrinsic value | ¥ | 0 | |||||||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 0 | |||||||||||||||||
Stock Option B | Management And Employees | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Share options granted | 43,140,000 | 43,140,000 | ||||||||||||||||
Share options granted, exercise price per share | (per share) | $ 0.31 | ¥ 2 | ||||||||||||||||
Share-based Payment Arrangement, Option | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Compensation expenses for shares granted | ¥ | 1,236,000 | ¥ 16,045,000 | 0 | |||||||||||||||
Restricted Share Units | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Compensation expenses for shares granted | ¥ | ¥ 14,570,000 | ¥ 0 | ¥ 8,173,000 | |||||||||||||||
Restricted Share Units | 2017 RSU | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Repurchase of ordinary shares | ¥ | ¥ 5,190,000 | |||||||||||||||||
Restricted Share Units | Consulting Company | 2021 RSU | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Restricted share units, issued | 25,000,000 | |||||||||||||||||
Restricted share units, measurement date fair value | $ / shares | $ 90,000 | |||||||||||||||||
Restricted Share Units | Consulting Company | 2017 RSU | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Restricted share units, issued | 2,600,000 | 2,800,000 | 2,800,000 | 2,600,000 | 2,600,000 | 15,990,000 | ||||||||||||
Restricted share units, measurement date fair value | $ / shares | $ 250,000 | $ 200,000 | $ 100,000 | $ 60,000 | $ 50,000 | |||||||||||||
Restricted share units, vested | 5,200,000 | |||||||||||||||||
Restricted share units, right to repurchase the remaining shares | 10,790,000 | 10,790,000 | ||||||||||||||||
Yijia Inc | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Shares reserved | 86,000,000 | 86,000,000 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of assumptions used to estimate fair values of share options granted (Detail) - $ / shares | 1 Months Ended | ||
Jul. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Risk-free rate of return | 3.21% | 3.18% | 3.18% |
Contractual life of option | 8 years 4 months 24 days | 10 years | 10 years |
Estimated volatility rate | 35.00% | 37.00% | 37.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Fair value of underlying ordinary shares | $ 0.05 | $ 0.04 | $ 0.03 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of option activity (Detail) - ¥ / shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Options - Beginning balance | 41,750,000 | |
Number of Options - Forfeited | (7,550,000) | |
Number of Options - Ending balance | 34,200,000 | 41,750,000 |
Number of Options - Vested or expected to vest | 34,200,000 | |
Exercise Price RMB - Beginning balance | ¥ 2 | |
Exercise Price RMB - Forfeited | 2 | |
Exercise Price RMB - Ending balance | 2 | ¥ 2 |
Exercise Price RMB - Vested or expected to vest | ¥ 2 | |
Remaining Contractual Life | 5 years 1 month 6 days | 6 years 1 month 6 days |
Remaining Contractual Life - Forfeited | 6 years 1 month 6 days | |
Remaining Contractual Life - Vested or expected to vest | 5 years 1 month 6 days |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of total compensation expenses (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expenses for shares granted | ¥ 15,806 | ¥ 16,045 | ¥ 8,173 |
Selling and marketing expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expenses for shares granted | 7 | 83 | |
General and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expenses for shares granted | 15,991 | 15,596 | ¥ 8,173 |
Research and development expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expenses for shares granted | ¥ (192) | ¥ 366 |
LOSS PER SHARE - Summary of com
LOSS PER SHARE - Summary of computation of basic and diluted earnings per share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021CNY (¥)¥ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020CNY (¥)¥ / sharesshares | Sep. 30, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss attributable to Q&K International Group Limited | ¥ (569,174) | $ (88,335) | ¥ (1,533,592) | ¥ (498,242) |
Deemed dividend | ¥ | (307,389) | |||
Net loss attributable to ordinary shareholders | ¥ (569,174) | $ (88,335) | ¥ (1,533,592) | ¥ (805,631) |
Denominator: | ||||
Weighted average ordinary shares outstanding—basic and diluted | shares | 1,460,692,909 | 1,460,692,909 | 1,351,127,462 | 430,450,490 |
Net loss per share—basic and diluted | (per share) | ¥ (0.39) | $ (0.06) | ¥ (1.14) | ¥ (1.87) |
LOSS PER SHARE - Additional Inf
LOSS PER SHARE - Additional Information (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Preference Shares [Member] | |||
Antidilutive Securities Excluded From Computation Of EPS | 0 | 0 | 912,410,360 |
Convertible Debt [Member] | |||
Antidilutive Securities Excluded From Computation Of EPS | 7,452,445 | 2,789,720 | 0 |
Share-based Payment Arrangement, Option | |||
Antidilutive Securities Excluded From Computation Of EPS | 34,200,000 | 41,750,000 | 68,220,000 |
Convertible Bonds And Warrants Attached [Member] | |||
Antidilutive Securities Excluded From Computation Of EPS | 293,133 | 109,567 | 0 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) | 12 Months Ended | |||||
Sep. 30, 2021CNY (¥) | Sep. 30, 2021HKD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020HKD ($) | Sep. 30, 2019HKD ($) | Sep. 30, 2018HKD ($) | |
Income Taxes [Line Items] | ||||||
Income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Tax loss carryforwards | ¥ 860,268,000 | |||||
Hong Kong | On The First Two Thousand Hong kong Dollars Of Assessable Income [Member] | ||||||
Income Taxes [Line Items] | ||||||
Assessable profits on which tax is levied | $ | $ 2,000 | $ 2,000 | $ 2,000 | $ 2,000 | ||
Income tax rate | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% |
Hong Kong | Above Two Thousand Hong kong Dollars Of Assessable Income [Member] | ||||||
Income Taxes [Line Items] | ||||||
Assessable profits on which tax is levied | $ | $ 2,000 | $ 2,000 | $ 2,000 | $ 2,000 | ||
Income tax rate | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% |
United States of America | ||||||
Income Taxes [Line Items] | ||||||
Income tax rate | 21.00% | 21.00% | ||||
PRC | ||||||
Income Taxes [Line Items] | ||||||
Income tax rate | 25.00% | 25.00% | ||||
Special circumstance for underpayment of income tax liability amount | ¥ 100,000 | |||||
Underpayment of income taxes statue of limitations due | 3 years | 3 years | ||||
Underpayment of Income taxes statue of limitations extended under special circumstances | 5 years | 5 years | ||||
Statute of limitations in case of transfer pricing related adjustment period | 10 years | 10 years | ||||
Statue of limitations in Case of tax evasion | ¥ 0 | |||||
Withholding income tax | 10.00% | 10.00% | ||||
Percentage of withholding tax rate reduced if investor holds at least 25% in foreign invested enterprises | 5.00% | 5.00% | ||||
Percentage of withholding tax rate reduced if investor holds less than 25% in foreign invested enterprises | 10.00% | 10.00% | ||||
Withholding income tax for undistributed profits | ¥ 0 | ¥ 0 |
INCOME TAXES - Summary of tax e
INCOME TAXES - Summary of tax expense (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax | ¥ 31 | ¥ 13 | ¥ 63 | |
Total | ¥ 31 | $ 5 | ¥ 13 | ¥ 63 |
INCOME TAXES - Summary of recon
INCOME TAXES - Summary of reconciliation between effective income tax rate and PRC statutory income tax rate (Detail) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Effect of different tax rates of group entities operating in other jurisdictions and preferential tax rates of group entities | (5.00%) | 0.50% | |
Tax effect of other expenses that are not deductible in determining taxable profit | (0.90%) | (2.40%) | |
Effect of share-based compensation | (0.70%) | (0.30%) | |
Tax effect of loss on disposal of long-term assets | (2.00%) | (7.60%) | |
Effect of change in valuation allowance | (16.40%) | (17.60%) | (22.60%) |
Effective tax rate | 0.00% | 0.00% | 0.00% |
INCOME TAXES - Summary of princ
INCOME TAXES - Summary of principal components of deferred income tax assets (Detail) - CNY (¥) ¥ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets: | ||||
Net losses carry forwards | ¥ 215,193 | ¥ 268,477 | ||
Impairment loss on long-term assets | 313,668 | 263,774 | ||
Allowance of doubtful accounts | 37,668 | |||
Other accrued expenses | 22,746 | 21,322 | ||
Deferred rent | 53,757 | |||
Advertising expenses | 12,592 | 12,592 | ||
Valuation allowance | ¥ (601,867) | ¥ (619,922) | ¥ (338,964) | ¥ (233,191) |
INCOME TAXES - Summary of movem
INCOME TAXES - Summary of movement of valuation allowance (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance | ¥ 619,922 | ¥ 338,964 | ¥ 233,191 |
Addition | 94,809 | 280,958 | 105,773 |
Write off | (112,864) | ||
Ending Balance | ¥ 601,867 | ¥ 619,922 | ¥ 338,964 |
STATUTORY RESERVES AND NET RE_2
STATUTORY RESERVES AND NET RESTRICTED ASSETS - Additional Information (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statutory Reserves And Restricted Assets [Abstract] | |||
Percentage of profit appropriated to general reserve | 10.00% | ||
Percentage of registered capital threshold | 50.00% | ||
Paid-in capital and statutory reserve funds | ¥ 1,754,615 | ¥ 1,754,615 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jul. 22, 2020USD ($) | |
Related Party Transaction [Line Items] | ||||||||
Services provided by the related parties | ¥ | ¥ 47,464 | ¥ 139,026 | ||||||
Proceeds from convertible notes | ¥ 113,236 | $ 17,574 | 163,565 | $ 24,018 | ||||
Accrued interest expenses on convertible debt | ¥ | 49,512 | 4,365 | ||||||
Amounts due from related parties | 201 | 168 | $ 31 | |||||
Amounts due to related parties | ¥ | ¥ 6,594 | ¥ 6,594 | ||||||
Convertible Debt [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument aggregate principal amount | $ | $ 100,000 | |||||||
Convertible Debt [Member] | Series 1 note [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument aggregate principal amount | ¥ 326,790 | $ 48,824 | ||||||
Convertible Debt [Member] | September Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt annual interest rate | 15.00% | 15.00% | 15.00% | 15.00% | ||||
Convertible Debt [Member] | September Convertible Notes [Member] | Interest Of Fifteen Percent [Member] | Series 1 note [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument aggregate principal amount | $ | $ 5,220 | $ 7,133 | ||||||
Convertible Debt [Member] | September Convertible Notes [Member] | Interest Of Seventeen Percent [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument aggregate principal amount | $ | $ 12,354 | $ 16,885 | ||||||
Debt annual interest rate | 17.00% | 17.00% | 17.00% | 17.00% |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Summary of transactions with related parties (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | |
Related Party Transaction [Line Items] | ||||
Services provided by the related parties | ¥ 47,464 | ¥ 139,026 | ||
Amounts due from related parties | 168 | ¥ 201 | $ 31 | |
Amounts due to related parties | 6,594 | 6,594 | ||
Purchases of property and equipment from Xulong | ||||
Related Party Transaction [Line Items] | ||||
Services provided by the related parties | 12,205 | |||
Labor outsourcing service expense to Laiguan | ||||
Related Party Transaction [Line Items] | ||||
Services provided by the related parties | 25,059 | 43,003 | ||
Labor outsourcing service expense to Qingji | ||||
Related Party Transaction [Line Items] | ||||
Services provided by the related parties | 22,405 | 41,180 | ||
Value-added service cost to Robot | ||||
Related Party Transaction [Line Items] | ||||
Services provided by the related parties | 28,336 | |||
Storage and logistic service expense to Xulong | ||||
Related Party Transaction [Line Items] | ||||
Services provided by the related parties | 4,582 | |||
Marketing service expense to Xulong | ||||
Related Party Transaction [Line Items] | ||||
Services provided by the related parties | ¥ 9,720 | |||
Shanghai Youzhen Information Technology Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties | 125 | |||
Others | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties | 43 | ¥ 201 | ||
Amounts due to related parties | 17 | |||
Shanghai Yijia Property Management Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | 4,156 | |||
Shanghai Qingji Property Management Co., Ltd. ("Qingji") | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | 1,539 | |||
Shanghai Laiguan Property Management Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to related parties | ¥ 882 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Summary of future minimum lease payments under non-cancellable operating lease agreements (Detail) ¥ in Thousands | Sep. 30, 2021CNY (¥) |
Commitments And Contingencies Disclosure [Abstract] | |
2022 | ¥ 559,843 |
2023 | 409,420 |
2024 | 222,260 |
2025 | 89,834 |
2026 | 44,175 |
Thereafter | 4,995 |
Total | ¥ 1,330,527 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - CNY (¥) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Compensation payable for premature termination of operating lease [Member] | ||
Commitments And Contingencies [Line Items] | ||
Operating lease compensation payable for premature termination | ¥ 1,302,000 | ¥ 5,211,000 |
Remaining compensation payable for premature termination of operating lease [Member] | ||
Commitments And Contingencies [Line Items] | ||
Operating lease compensation payable for premature termination | ¥ 3,909,000 | |
Compensation payable for premature termination of operating lease 1 [Member] | ||
Commitments And Contingencies [Line Items] | ||
Period over which landlord can initiate legal proceedings | 3 years | |
Compensation payable for premature termination of operating lease 1 [Member] | Maximum | ||
Commitments And Contingencies [Line Items] | ||
Operating lease maximum compensation payable for premature termination of operating lease | ¥ 58,003,000 | |
Leasehold improvements and installation of equipment | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments | ¥ 0 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) - Exclusive Technology Service Agreement [Member] - Minimum - Shanghai Qingke E-Commerce Co., Ltd. | Oct. 26, 2021 | Sep. 30, 2021 |
Subsequent Event [Line Items] | ||
Percentage of net profit agreed to pay service fees | 100.00% | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of net profit agreed to pay service fees | 100.00% |
FINANCIAL STATEMENT SCHEDULE I
FINANCIAL STATEMENT SCHEDULE I - Additional Information (Detail) | Sep. 30, 2021 | Sep. 30, 2020 |
Statement Of Financial Position [Abstract] | ||
Convenience translation rate of USD1.00 | 6.4434 | 6.4434 |
FINANCIAL STATEMENT SCHEDULE _2
FINANCIAL STATEMENT SCHEDULE I - Condensed Balance Sheets (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) |
Assets | ||||
Cash and cash equivalents | ¥ 16,317 | $ 2,532 | ¥ 22,879 | ¥ 159,799 |
Total assets | 377,630 | 58,606 | 850,730 | |
Liabilities | ||||
Short-term borrowings | 558,705 | 86,710 | 762,136 | |
Accrued expenses and other current liabilities | 1,024,882 | 159,059 | 443,418 | |
Total liabilities | 2,862,536 | 444,259 | 2,845,180 | |
Shareholders' deficit: | ||||
Ordinary shares | 110 | 17 | 92 | |
Treasury stock | (5) | (1) | (298,110) | |
Additional paid-in capital | 1,845,295 | 286,385 | 2,085,099 | |
Accumulated deficits | (4,378,690) | (679,562) | (3,809,516) | |
Accumulated other comprehensive(loss) income | 38,784 | 6,018 | 18,357 | |
Total Q&K International Group Limited shareholders’ deficit | (2,494,506) | (387,143) | (2,004,078) | |
Total liabilities and shareholders’ deficit | 377,630 | 58,606 | 850,730 | |
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 1,355 | 209 | 6,015 | |
Amounts due from subsidiaries and consolidated VIEs | 1,465,312 | 227,413 | 1,385,814 | |
Total assets | 1,466,667 | 227,622 | 1,391,829 | |
Liabilities | ||||
Short-term borrowings | 210,776 | 32,712 | 221,328 | |
Accrued expenses and other current liabilities | 13,126 | |||
Contingent liabilities for payable for asset acquisition | 164,254 | 25,492 | ||
Convertible notes | 313,870 | 48,712 | 206,251 | |
Deficit of investments in subsidiaries and consolidated VIEs | 3,272,273 | 507,849 | 2,955,202 | |
Total liabilities | 3,961,173 | 614,765 | 3,395,907 | |
Shareholders' deficit: | ||||
Ordinary shares | 110 | 17 | 92 | |
Treasury stock | (5) | (1) | (298,110) | |
Additional paid-in capital | 1,845,295 | 286,385 | 2,085,099 | |
Accumulated deficits | (4,378,690) | (679,562) | (3,809,516) | |
Accumulated other comprehensive(loss) income | 38,784 | 6,018 | 18,357 | |
Total Q&K International Group Limited shareholders’ deficit | (2,494,506) | (387,143) | (2,004,078) | |
Total liabilities and shareholders’ deficit | ¥ 1,466,667 | $ 227,622 | ¥ 1,391,829 |
FINANCIAL STATEMENT SCHEDULE _3
FINANCIAL STATEMENT SCHEDULE I - Condensed Statements Of Comprehensive Loss (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | |
Selling, general and administrative expenses | ¥ (217,108) | $ (33,695) | ¥ (102,769) | ¥ (108,196) |
Debt extinguishment loss | (41,964) | (6,512) | ||
Contingent earn-out liabilities, gain | 97,417 | 42,404 | ||
Loss from operations | (399,663) | (62,027) | (1,500,777) | (448,307) |
Net loss attributable to Q&K International Group Limited | (569,174) | (88,335) | (1,533,592) | (498,242) |
Foreign currency translation adjustments | 20,427 | 3,170 | 24,265 | (7,621) |
Deemed dividend | (307,389) | |||
Comprehensive loss attributable to Q&K International Group Limited | (548,747) | (85,165) | (1,509,327) | (505,863) |
Parent Company | ||||
Selling, general and administrative expenses | (27,302) | (4,237) | (37,557) | (15,888) |
Interest income (expenses) | (61,265) | (9,508) | (42,507) | 1,761 |
Debt extinguishment loss | (41,961) | (6,512) | ||
Contingent earn-out liabilities, gain | 97,417 | 42,404 | ||
Loss from operations | (130,528) | (20,257) | 17,353 | 28,277 |
Equity in losses of subsidiaries and consolidated VIE and VIE’s subsidiaries | (438,674) | (68,082) | (1,550,994) | (526,614) |
Net loss attributable to Q&K International Group Limited | (569,202) | (88,339) | (1,533,641) | (498,337) |
Foreign currency translation adjustments | 20,427 | 3,170 | 24,265 | (7,621) |
Deemed dividend | (307,389) | |||
Comprehensive loss attributable to Q&K International Group Limited | ¥ (548,775) | $ (85,169) | ¥ (1,509,376) | ¥ (813,347) |
FINANCIAL STATEMENT SCHEDULE _4
FINANCIAL STATEMENT SCHEDULE I - Condensed Statements Of Cash Flows (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021CNY (¥) | Sep. 30, 2021USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019CNY (¥) | |
Net cash used in operating activities | ¥ (109,661) | $ (17,017) | ¥ 54,841 | ¥ (88,189) |
Net cash used in investing activities | (6,486) | (1,000) | (138,670) | (351,450) |
Net cash provided by (used in) financing activities | 101,601 | 15,769 | (134,924) | 569,569 |
Effect of foreign exchange rate changes | 2,032 | 557 | (295) | 2,132 |
Cash, cash equivalents and restricted cash at the beginning of the year | 31,766 | 4,679 | 250,814 | 118,752 |
Cash, cash equivalents and restricted cash at the end of the year | 19,252 | 2,988 | 31,766 | 250,814 |
Parent Company | ||||
Net cash used in operating activities | (30,664) | (4,759) | (17,452) | (20,149) |
Net cash used in investing activities | (87,232) | (13,538) | (407,297) | (460,663) |
Net cash provided by (used in) financing activities | 113,236 | 17,574 | 329,839 | 530,002 |
Effect of foreign exchange rate changes | 47 | (232) | 2,087 | |
Net increase (decrease) in cash and cash equivalents | (4,660) | (676) | (95,142) | 51,277 |
Cash, cash equivalents and restricted cash at the beginning of the year | 6,015 | 886 | 101,157 | 49,880 |
Cash, cash equivalents and restricted cash at the end of the year | ¥ 1,355 | $ 210 | ¥ 6,015 | ¥ 101,157 |