Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Mar. 31, 2023 | Aug. 08, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | UTime Limited | |
Trading Symbol | UTME | |
Document Type | 20-F | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 13,567,793 | |
Amendment Flag | false | |
Entity Central Index Key | 0001789299 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-40306 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | 7th Floor | |
Entity Address, Address Line Two | Building 5A | |
Entity Address, Address Line Three | Shenzhen Software Industry Base | |
Entity Address, City or Town | Nanshan District | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 518061 | |
Title of 12(b) Security | Ordinary shares, par value US$ $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Accounting Standard | U.S. GAAP | |
Document Financial Statement Error Correction [Flag] | false | |
Auditor Name | Audit Alliance LLP | |
Auditor Location | Singapore | |
Auditor Firm ID | 3487 | |
Business Contact | ||
Document Information Line Items | ||
Entity Address, Address Line One | 7th Floor | |
Entity Address, Address Line Two | Building 5A | |
Entity Address, Address Line Three | Shenzhen Software Industry Base | |
Entity Address, City or Town | Nanshan District | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 518061 | |
Contact Personnel Name | Hengcong Qiu | |
City Area Code | (86) | |
Local Phone Number | 755 86512266 |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 71,934 | $ 10,468 | ¥ 66,692 |
Restricted cash | 500 | 73 | 500 |
Accounts receivable, net | 52,308 | 7,612 | 22,417 |
Prepaid expenses and other current assets, net | 95,508 | 13,899 | 65,815 |
Due from related parties | 584 | 85 | 1,422 |
Inventories | 16,169 | 2,353 | 36,071 |
Total current assets | 237,003 | 34,490 | 192,917 |
Non-current assets | |||
Property and equipment, net | 61,429 | 8,939 | 38,270 |
Operating lease, right-of-use assets, net | 13,030 | 1,896 | 16,319 |
Equity method investment | |||
Intangible assets, net | 1,677 | 244 | 2,592 |
Other non-current assets | 541 | ||
Total non-current assets | 76,136 | 11,079 | 57,722 |
Total assets | 313,139 | 45,569 | 250,639 |
Current liabilities | |||
Accounts payable | 126,691 | 18,437 | 74,531 |
Short-term borrowings | 53,935 | 7,849 | 35,780 |
Current portion of long-term borrowings | 1,080 | 157 | 800 |
Due to related parties | 5,500 | 800 | 4,499 |
Lease liabilities | 3,673 | 535 | 3,360 |
Other payables and accrued liabilities | 54,772 | 7,971 | 44,148 |
Income tax payables | 18 | 3 | 18 |
Total current liabilities | 245,669 | 35,752 | 163,136 |
Non-current liabilities | |||
Long-term borrowings | 6,870 | 1,000 | 8,020 |
Government grants | 8,697 | 1,266 | |
Deferred tax liabilities | 295 | 43 | 466 |
Lease liabilities - non-current | 10,876 | 1,583 | 14,549 |
Total non-current liabilities | 26,738 | 3,892 | 23,035 |
Total liabilities (including amounts of the consolidated VIEs without recourse to the Company of RMB183,639 and RMB265,773 as of March 31, 2022 and 2023, respectively) | 272,407 | 39,644 | 186,171 |
Commitments and contingencies | |||
Shareholder’s equity | |||
Preference share, par value US$0.0001; Authorized:10,000,000 shares; Nil issued and outstanding as of March 31, 2022 and March 31, 2023 | |||
Ordinary shares, par value US$0.0001; Authorized:140,000,000 shares; Issued and outstanding: 8,267,793 shares as of March 31,2022 and 13,567,793 shares as of March 31, 2023 | 9 | 1 | 5 |
Additional paid-in capital | 216,504 | 31,507 | 152,236 |
Accumulated deficit | (175,893) | (25,597) | (88,277) |
Accumulated other comprehensive income | 3,469 | 503 | 1,024 |
Total UTime Limited shareholder’s equity | 44,089 | 6,414 | 64,988 |
Non-controlling interests | (3,357) | (489) | (520) |
Total shareholders’ equity | 40,732 | 5,925 | 64,468 |
Total liabilities and shareholders’ equity | ¥ 313,139 | $ 45,569 | ¥ 250,639 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Including amounts of the consolidated VIEs (in Dollars and Yuan Renminbi) | ¥ 265,773 | ¥ 183,639 |
Preferred share, par value (in Dollars per share and Yuan Renminbi per share) | ¥ 0.0001 | ¥ 0.0001 |
Preferred share, shares authorized | 10,000,000 | 10,000,000 |
Preferred share, shares issued | ||
Preferred share, shares outstanding | ||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | ¥ 0.0001 | ¥ 0.0001 |
Ordinary shares, shares authorized | 140,000,000 | 140,000,000 |
Ordinary shares, shares issued | 13,567,793 | 8,267,793 |
Ordinary shares, shares outstanding | 13,567,793 | 8,267,793 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Mar. 31, 2021 CNY (¥) ¥ / shares shares | |
Income Statement [Abstract] | ||||
Net sales | ¥ 200,547 | $ 29,184 | ¥ 275,508 | ¥ 246,899 |
Cost of sales | 170,482 | 24,809 | 261,723 | 228,732 |
Gross profit | 30,065 | 4,375 | 13,785 | 18,167 |
Operating expenses: | ||||
Selling expenses | 7,391 | 1,076 | 5,459 | 4,127 |
General and administrative expenses | 110,412 | 16,068 | 39,499 | 25,695 |
Other expenses (income), net | (3,694) | (538) | 3,328 | 2,875 |
Total operating expenses | 114,109 | 16,606 | 48,286 | 32,697 |
Loss from operations | (84,044) | (12,231) | (34,501) | (14,530) |
Interest expenses | 6,149 | 895 | 4,875 | 2,461 |
Loss before income taxes | (90,193) | (13,126) | (39,376) | (16,991) |
Income tax benefits | 171 | 25 | 46 | 364 |
Net loss | (90,022) | (13,101) | (39,330) | (16,627) |
Less: Net loss attributable to non-controlling interests | (2,406) | (350) | 497 | |
Net loss attributable to UTime Limited | (87,616) | (12,751) | (38,833) | (16,627) |
Net loss | (90,022) | (13,101) | (39,330) | (16,627) |
Foreign currency translation adjustment | 2,445 | 356 | (377) | 1,868 |
Total comprehensive loss | (87,577) | (12,745) | (39,707) | (14,759) |
Less: Comprehensive loss/(income) attributable to non-controlling interest | (2,406) | (350) | 497 | |
Comprehensive loss attributable to UTime Limited | ¥ (85,171) | $ (12,395) | ¥ (39,210) | ¥ (14,759) |
Losses per share attributable to UTime Limited | ||||
Basic (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (7.8) | $ (1.14) | ¥ (4.76) | ¥ (3.68) |
Weighted average ordinary shares outstanding | ||||
Basic (in Shares) | 11,229,985 | 11,229,985 | 8,164,771 | 4,517,793 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parentheticals) | 12 Months Ended | |||
Mar. 31, 2023 ¥ / shares shares | Mar. 31, 2023 $ / shares shares | Mar. 31, 2022 ¥ / shares shares | Mar. 31, 2021 ¥ / shares shares | |
Income Statement [Abstract] | ||||
Diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (7.80) | $ (1.14) | ¥ (4.76) | ¥ (3.68) |
Diluted | 11,229,985 | 11,229,985 | 8,164,771 | 4,517,793 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity ¥ in Thousands, $ in Thousands | Ordinary Shares CNY (¥) shares | Additional Paid-in Capital CNY (¥) | Accumulated Deficit CNY (¥) | Accumulated Other Comprehensive Income (Loss) CNY (¥) | Non- Controlling Interests CNY (¥) | CNY (¥) | USD ($) |
Balance at Mar. 31, 2020 | ¥ 4 | ¥ 73,217 | ¥ (32,817) | ¥ (467) | ¥ 39,937 | ||
Balance (in Shares) at Mar. 31, 2020 | shares | 4,517,793 | ||||||
Net loss | (16,627) | (16,627) | |||||
Foreign currency translation difference | 1,868 | 1,868 | |||||
Balance at Mar. 31, 2021 | ¥ 4 | 73,217 | (49,444) | 1,401 | 25,178 | ||
Balance (in Shares) at Mar. 31, 2021 | shares | 4,517,793 | ||||||
Net loss | (38,833) | (497) | (39,330) | ||||
Issuance of ordinary shares upon initial public offering, net of offering costs | ¥ 1 | 79,019 | 10 | 79,030 | |||
Issuance of ordinary shares upon initial public offering, net of offering costs (in Shares) | shares | 3,750,000 | ||||||
Foreign currency translation difference | (377) | (33) | (410) | ||||
Balance at Mar. 31, 2022 | ¥ 5 | 152,236 | (88,277) | 1,024 | (520) | 64,468 | |
Balance (in Shares) at Mar. 31, 2022 | shares | 8,267,793 | ||||||
Net loss | (87,616) | (2,406) | (90,022) | $ (13,101) | |||
Issuance of ordinary shares | ¥ 4 | 64,268 | 64,272 | ||||
Issuance of ordinary shares (in Shares) | shares | 5,300,000 | ||||||
Foreign currency translation difference | 2,445 | (431) | 2,014 | ||||
Balance at Mar. 31, 2023 | ¥ 9 | ¥ 216,504 | ¥ (175,893) | ¥ 3,469 | ¥ (3,357) | ¥ 40,732 | $ 5,925 |
Balance (in Shares) at Mar. 31, 2023 | shares | 13,567,793 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (90,022) | $ (13,101) | ¥ (39,330) | ¥ (16,627) |
Adjustments to reconcile net loss from operations to net cash used by operating activities: | ||||
Depreciation and amortization | 5,794 | 843 | 4,333 | 3,954 |
Allowance/(write-back) for obsolete inventories, net | (407) | (59) | 293 | 7,589 |
(Reversal of)/provision for doubtful account, net | 3,406 | (836) | ||
Loss on equity method investment | 833 | |||
Share-based compensation and expenses | 63,656 | 9,264 | ||
Loss on disposal of property and equipment | 184 | 27 | 10 | |
Impairment of an intangible asset | 348 | |||
Deferred tax | (171) | (25) | ||
Net changes in operating assets and liabilities: | ||||
Accounts receivable | (27,564) | (4,011) | (5,725) | 21,477 |
Prepaid expenses and other current assets | (25,871) | (3,765) | 5,937 | (26,173) |
Inventories | 20,627 | 3,002 | (4,629) | (10,934) |
Accounts payable | 19,629 | 2,856 | 27,324 | (9,924) |
Other payables and accrued liabilities, and lease liabilities | 8,888 | 1,293 | (11,925) | 27,993 |
Related parties | 881 | 128 | (699) | 527 |
Deferred revenue | (400) | |||
Government grants | 8,697 | 1,266 | ||
Other non-current assets | 541 | 79 | (208) | |
Net cash used in operating activities | (15,138) | (2,203) | (20,865) | (2,521) |
Cash flows from investing activities: | ||||
Payment for property and equipment | (2,593) | (377) | (5,858) | |
Payment for intangible assets | (307) | (45) | (2,201) | |
Cash received from consolidation, net of cash acquired | 28 | |||
Net cash used in investing activities | (2,900) | (422) | (5,830) | (2,201) |
Cash flows from financing activities: | ||||
Proceeds from short-term borrowings | 66,300 | 9,648 | 46,500 | 47,600 |
Loan received from a shareholder | 4,010 | 584 | 5,980 | 900 |
Proceeds from long-term borrowings | 9,000 | |||
Repayment of loan from a shareholder | (3,000) | (437) | (3,000) | (1,500) |
Repayment of short-term borrowings | (48,145) | (7,006) | (41,520) | (31,800) |
Repayments of long-term borrowings | (870) | (127) | (5,760) | (1,200) |
Down payment for financing services | (19,003) | |||
Contribution in a subsidiary by a shareholder | 6,429 | |||
Proceeds from issuance of ordinary shares through initial public offering | 88,262 | |||
Net cash provided by financing activities | 18,295 | 2,662 | 86,888 | 14,000 |
Effect of exchange rate changes on cash and cash equivalent and restricted cash | 4,985 | 725 | (2,478) | (855) |
Net increase in cash and cash equivalent and restricted cash | 5,242 | 763 | 57,715 | 8,423 |
Cash and cash equivalents and restricted cash at beginning of year | 67,192 | 9,778 | 9,477 | 1,054 |
Cash and cash equivalents and restricted cash at end of year | 72,434 | 10,541 | 67,192 | 9,477 |
Supplemental disclosures of cash flow information: | ||||
Income taxes refunded | (364) | |||
Interest paid | 6,097 | 887 | 4,707 | 2,461 |
Restricted cash | 500 | 73 | 500 | 500 |
Cash and cash equivalents | 71,934 | 10,468 | 66,692 | 8,977 |
Cash, cash equivalents and restricted cash | ¥ 72,434 | $ 10,541 | ¥ 67,192 | ¥ 9,477 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Mar. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 — ORGANIZATION AND PRINCIPAL ACTIVITIES UTime Limited was incorporated as an exempted company with limited liability under the laws of the Cayman Islands on October 9, 2018. UTime Limited does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries, variable interest entity (“VIE”) and subsidiaries of the VIE. UTime Limited, its subsidiaries, VIE and subsidiaries of the VIE (together, the “Company”) is primarily engaged in the operation of designing, manufacturing and marketing mobile communication devices, and selling a variety of related accessories. (a) History and Reorganization The Company commenced its operations in June 2008 through United Time Technology Co., Ltd. (“UTime SZ” or “VIE”), a People’s Republic of China (the “PRC” or “China”) company established by Mr. Minfei Bao (“Mr. Bao”), Mr. Junlin Zhou (“Mr. Zhou”) and Mr. Bo Tang (“Mr. Tang”). As of March 31, 2017, Mr. Bao, Mr. Zhou and Mr. Tang held 52%, 28% and 20% equity interests of UTime SZ, respectively. In February 2018, Mr. Bao acquired 28% and 20% equity interests of UTime SZ from Mr. Zhou and Mr. Tang, respectively, with the total consideration of RMB9.6 million in cash through his private fund. As of the acquisition date, such non-controlling interests amounted to RMB17.2 million and were transferred to equity attributable to UTime Limited, of which RMB1.0 million relating to foreign currency translation was transferred to the accumulated other comprehensive income, and remaining balance of RMB16.2 million was transferred to additional paid-in capital. After the acquisition, Mr. Bao became the sole shareholder of UTime SZ. Prior to the reorganization, UTime SZ’s equity interests were held by Mr. Bao. For the purpose of an initial public offering in the United States (“IPO”), the following transactions were undertaken to reorganize the legal structure (the “Reorganization”) of the Company. In October 2018, UTime Limited was incorporated in the Cayman Islands. In November and December 2018, UTime International Limited (“UTime HK”) was incorporated in Hong Kong and Shenzhen UTime Technology Consulting Co., Ltd. (“UTime WFOE”) was incorporated in China, respectively. In March 2019, UTime WFOE entered into a series of contractual agreements with VIE and Mr. Bao, which were further amended and restated in August and September 2019, respectively, and were entered into among UTime WFOE, VIE, Mr. Bao and Mr. Min He (“Mr. He”). Pursuant to these agreements as detailed in note 1(b), the Company believes that these contractual arrangements would enable the Company to (1) have power to direct the activities that most significantly affect the economic performance of the VIE and its subsidiaries, and (2) receive the economic benefits of the VIE and its subsidiaries that could be significant to the VIE and its subsidiaries. Accordingly, the Company is considered the primary beneficiary of the VIE and is able to consolidate the VIE and its subsidiaries. Do Mobile India Private Ltd. (“Do Mobile”) was incorporated on October 24, 2016 in New Delhi, India. It is an operating entity that sells cell phone products and provides after-sale services for the Company’s own in-house brand products in India. Prior to the reorganization, the majority of Do Mobile’s equity interests were held by Mr. Bao through an entrust agreement with Mr. Wukai Song through a holding company, Bridgetime Limited (“Bridgetime”). Bridgetime was incorporated on September 5, 2016 in British Virgin Island (“BVI”) under the laws of BVI, with Mr. Wukai Song owning 70% through an entrust agreement between him and Mr. Bao, and Mr. Yunchuan Li owning 30% of equity interest. On March 5, 2018, Bridgetime issued 100,000 shares to Mr. Wukai Song, changing shareholders’ structure to Mr. Wukai Song owning 90% equity interest, which are controlled by Mr. Bao through an entrust agreement between Mr. Bao and Mr. Wukai Song, and Mr. Yunchuan Li owning 10% of equity interest. On December 5, 2018, Bridgetime approved a board resolution that appointed and registered Mr. Yihuang Chen as a new director. On March 11, 2019, Bridgetime approved a board resolution that transferred 1 share of Do Mobile to Mr. Yihuang Chen and made him nominal shareholder of Do Mobile, removed Mr. Yunchuan Li as the director of Bridgetime and authorized representative of Do Mobile, and appointed Mr. Wukai Song as the authorized representative of Do Mobile. On April 4, 2019, Bridgetime approved a board resolution that forfeited 15,000 shares held by Mr. Yunchuan Li, cancelled those shares accordingly and amended Bridgetime’s memorandum of association that changed authorized shares from 150,000 to 135,000 at a par value of US$1.00 which was accounted as a cancellation of non-controlling interest in the consolidated statements of shareholders’ equity. After this, Mr. WuKai Song owned 100% of equity interest of Bridgetime, which are controlled by Mr. Bao through an entrust agreement between Mr. Bao and Mr. Wukai Song. On May 23, 2019, Bridgetime approved a board resolution that transferred 135,000 ordinary shares owning by Mr. Wukai Song to UTime Limited. Since inception, Bridgetime has only made nominal investments into Do Mobile and no substantial business operations have occurred. On May 20, 2019, the Company approved a board resolution that agreed to transfer 12,000,000 ordinary shares being owned by Mr. Bao to Grandsky Phoenix Limited, a company that was established under the laws of the BVI and 100% owned by Mr. Bao. As all the entities involved in the process of the Reorganization are under common control before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling-of-interest with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts. On June 3, 2019, the Company entered into a share subscription agreement with HMercury Capital Limited, a company that was incorporated under the laws of the BVI and controlled by Mr. He. HMercury Capital Limited purchased an aggregation of 377,514 ordinary shares. On the same day, the Company approved a board resolution for issuance of 377,514 ordinary shares at par value US$0.0001 to HMercury Capital Limited based on the share subscription agreement. As a result, Grandsky Phoenix Limited and HMercury Capital Limited own 96.95% and 3.05% of equity interest of the Company. On April 29, 2020, the Company approved a board resolution, which became effective immediately, that agreed to repurchase 7,620,000 and 239,721 ordinary shares, which were subsequently cancelled, at par value (the “Repurchased Shares”) from Grandsky Phoenix Limited and HMercury Capital Limited, respectively, in accordance with their respective share percentages based on the share repurchase agreement that the Company entered into with Grandsky Phoenix Limited and HMercury Capital Limited on April 29, 2020. On August 13, 2020, the Company approved a board resolution and signed capital contribution letter with Grandsky Phoenix Limited and HMercury Capital Limited, respectively. Based on the capital contribution letter, each shareholder opted not to receive the consideration for the Repurchased Shares and made a pure capital contribution in the sum of the purchase price in favor of the Company without the issue of additional shares of the Company. Before and after the repurchase of ordinary shares, Mr. Bao, through Grandsky Phoenix Limited, and Mr. He, through HMercury Capital Limited, own 96.95% and 3.05% of our issued and outstanding ordinary shares, respectively. The Company considers this repurchase of ordinary shares was part of the Company’s recapitalization to result in 4,517,793 ordinary shares issued and outstanding prior to completion of its IPO. The Company believes it is appropriate to reflect these nominal share repurchases to result in 4,517,793 ordinary shares being issued and outstanding or reduction of 63.5% of total ordinary shares being issued and outstanding after the repurchase of ordinary shares similar to 0.365-for-1 reverse stock split. As of March 31, 2023, details of the subsidiaries and VIE of the Company are set out below: Name Date of Place of Percentage of Principal Subsidiaries UTime HK November 1, 2018 Hong Kong 100% Investment Holding UTime WFOE December 18, 2018 China 100% Investment Holding Bridgetime September 5, 2016 British Virgin Island 100% Investment Holding Do Mobile October 24, 2016 India 99.99% Sales of in-house brand products in India Name Date of Place of Percentage of Principal VIE UTime SZ June 12, 2008 China 100% Research and development of products, and sales Subsidiaries of the VIE Guizhou United Time Technology Co., Ltd. (“UTime GZ”) September 23, 2016 China VIE’s subsidiary Manufacturing UTime Technology (HK) Company Limited (“UTime Trading”) June 25, 2015 Hong Kong VIE’s subsidiary Trading UTime India Private Limited (“UTime India”) February 7, 2019 India UTime Trading’s subsidiary Trading Guangxi UTime Technology Co., Ltd. (“UTime Guangxi”) November 1, 2021 China UTime Trading’s subsidiary Manufacturing Gesoper S De R.L. De C.V. (“Gesoper”) October 21, 2020 Mexico UTime Trading’s subsidiary Trading Firts Communications And Technologies De Mexico S.A. De C.V. (“Firts”) November 12, 2021 Mexico Gesoper’s subsidiary Trading (b) VIE Arrangements between the VIE and the Company’s PRC subsidiary The Company conducts substantial majority of business in the PRC through a series of contractual arrangements with the VIE and its subsidiaries. The VIE and subsidiaries of the VIE hold the requisite licenses and permits necessary to conduct the Company’s business. In addition, the VIE and subsidiaries of the VIE hold the assets necessary to operate the Company’s business and generate substantial majority of the Company’s revenues. Our contractual arrangements with the VIE and its respective shareholders allow us to (i) determine the most significant economic activities of the VIE; (ii) receive substantially all of the economic benefits of the VIE; and (iii) have an exclusive option to purchase all or part of the equity interest in and/or assets of the VIE when and to the extent permitted by PRC laws. As a result of our direct ownership in UTime WFOE and the contractual arrangements with the VIE, we are regarded as the primary beneficiary of the VIE, and we treat the VIE and its subsidiaries as our consolidated affiliated entities under generally accepted accounting principles in the United States of America (“US GAAP”). We have consolidated the financial results of the VIE and its subsidiaries in our consolidated financial statements in accordance with US GAAP. The following is a summary of the contractual arrangements by and among UTime WFOE, the VIE and the shareholders of the VIE and their spouses, as applicable. Exclusive Technical Consultation and Service Agreement. Equity Pledge Agreement Exclusive Call Option Agreements Power of Attorney. Business Operation Agreement. Spouse Consent Letter. Risks in relation to VIE structure The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If we or the VIE are found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIE; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● imposing fines, confiscating the income from the Company’s PRC subsidiary or the VIE, or imposing other requirements with which we or the VIE may not be able to comply; ● requiring us to restructure our ownership structure or operations, including terminating the contractual arrangements with the VIE and deregistering the equity pledges of the VIE, which in turn would affect our ability to consolidate, derive economic interests from, or determine the most significant economic activities of the VIE; or ● restricting or prohibiting our use of the proceeds of its IPO to finance our business and operations in China. The Company’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE in its consolidated financial statements as it may lose the ability to determine the most significant economic activities of the VIE and it may lose the ability to receive economic benefits from the VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary or VIE. Mr. Bao and Mr. He hold 96.95% and 3.05% equity interest in the VIE, respectively. The shareholders of the VIE may have potential conflicts of interest with us. The shareholders may breach, or cause the VIE to breach, or refuse to renew, the existing contractual arrangements we have with them and the VIE, which would have a material and adverse effect on our ability to determine the most significant economic activities of the VIE and receive economic benefits from it. For example, the shareholders may be able to cause our agreements with the VIE to be performed in a manner adverse to us by, among other things, failing to remit payments due under the contractual arrangements to us on a timely basis. We cannot assure you that when conflicts of interest arise the shareholders will act in the best interests of our company or such conflicts will be resolved in our favor. Currently, we do not have any arrangements to address potential conflicts of interest between the shareholders and our company. If we cannot resolve any conflict of interest or dispute between us and the shareholders, we would have to rely on legal proceedings, which could result in disruption of our business and subject us to substantial uncertainty as to the outcome of any such legal proceedings. The Company has aggregated the financial information of the VIE and subsidiaries of the VIE in the table below. The aggregate carrying value of assets and liabilities of VIE and its subsidiaries (after elimination of intercompany transactions and balances) in the Company’s consolidated balance sheets as of March 31, 2022 and 2023 are as follows: As of March 31, 2022 2023 RMB RMB Assets Current assets Cash and cash equivalents 192 277 Restricted cash 500 500 Accounts receivable, net 22,391 52,241 Prepaid expenses and other current assets, net 42,431 70,202 Due from related parties 1,422 584 Inventories 36,018 16,169 Total current assets 102,954 139,973 Non-current assets Property and equipment, net 38,227 61,411 Operating lease right-of-use assets, net 16,319 13,030 Equity method investment - - Intangible assets, net 2,592 1,677 Other non-current assets 541 - Total non-current assets 57,679 76,118 Total assets 160,633 216,091 Liabilities Current liabilities Accounts payable 74,497 126,683 Short-term borrowings 35,780 53,935 Current portion of long-term borrowings 800 1,080 Due to related parties 3,728 4,705 Lease liabilities 3,360 3,673 Other payables and accrued liabilities 42,423 48,941 Income tax payables 18 18 Total current liabilities 160,606 239,035 Non-current liabilities Long-term borrowings 8,020 6,870 Government grants - 8,697 Deferred tax liabilities 466 295 Lease liabilities 14,549 10,876 Total non-current liabilities 23,035 26,738 Total liabilities 183,639 265,773 The table sets forth the revenue, net loss and cash flows of the VIE and subsidiaries of VIE in the table below. Year ended March 31, 2021 2022 2023 RMB RMB RMB Revenue 240,742 273,979 200,450 Net loss (10,722 ) (29,643 ) (19,221 ) Net cash used in operating activities (3,020 ) (19,806 ) (15,269 ) Net cash used in investing activities (2,201 ) (5,830 ) (2,900 ) Net cash provided by financing activities 14,000 17,629 18,295 (c) Initial Public Offering On April 8, 2021, the Company completed its IPO on Nasdaq Capital Market. In the offering, 3,750,000 of the Company’s ordinary shares were issued and sold to the public at a price of US$4 per share for gross proceeds of US$15 million. The Company recorded net proceeds (after deducting underwriting discounts and commissions and other offering fees and expenses) of approximately $13.9 million (approximately RMB88.2 million) from the offering. (d) Asset Acquisitions On December 17, 2021, the Company, through UTime Trading, acquired a 51% of the controlling equity interest of Gesoper. Subsequently, on January 17, 2022, Gesoper acquired 85% economic equity interest in Firts, which were determined to be variable interest entities of which the Company is considered the primary beneficiary. |
Going Concern
Going Concern | 12 Months Ended |
Mar. 31, 2023 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 2 — GOING CONCERN The Company’s financial statements as of March 31, 2023, is prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has suffered recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. As of March 31, 2023, the Company had current assets of RMB237.0 million (US$34.5 million) and current liabilities of RMB245.7 million (US$35.8 million), resulting in a working capital deficit of approximately RMB8.7 million (US$1.3 million). As of March 31, 2022, we had current assets of RMB192.9 million and current liabilities of RMB163.1 million, resulting in a working capital of approximately RMB29.8 million. The Company had accumulated deficit of RMB88.2 million (US$12.8 million) and RMB175.9 million (US$25.6 million) as of March 31, 2022 and 2023, respectively. For the fiscal year ended March 31, 2023, the Company incurred a net loss of RMB87.6 million (US$12.7 million). Net cash outflow was RMB15.1 million (US$2.2 million) from operations for the fiscal year ended March 31, 2023, a decrease of cash outflow of RMB5.8 million compared to the net cash outflow of RMB20.9 million for the fiscal year ended March 31, 2022 as a result of strengthened control on turnover of inventory. The Company continues to focus on improving operational efficiency and cost reductions, developing core cash-generating business and enhancing efficiency. The Company expects that the existing and future cash generated from operation will be sufficient to fund the future operating expenses and capital expenditure requirements. With the new markets, such as Japan, and new product pipeline developed, the Management believes that the actions to be taken including, product offerings, geographical expansion, generate revenue through expansion of revenue streams and customer base, will further improve business efficiency and profitability. The new product pipeline aims on improvement of profitability by providing tailored and high-margin products that provide the opportunity for the Company to continue as a going concern. In addition, the Company is also working on raising additional funding to finance the operations as well as business expansion. The consolidated financials have been prepared assuming that the Company will continue as a going concern and, accordingly financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, VIE and VIE’s subsidiaries for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries, VIE and VIE’s subsidiaries are eliminated. Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Management evaluates these estimates and assumptions on a regular basis. Significant accounting estimates reflected in the Company’s consolidated financial statements include but are not limited to estimates and judgments applied in the allowance for receivables, write down of other assets, estimated useful lives of property and equipment, impairment on inventory, sales return, product warranties, the valuation allowance for deferred tax assets and income tax and provision for employee benefits. Actual results could differ from those estimates and judgments. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments with original maturities of three months or less at the date of purchase, that are readily convertible to known amounts of cash and have insignificant risk of changes in value related to changes in interest rates. Restricted cash Restricted cash consisted of collateral representing cash deposits for long-term borrowings. Accounts receivable, net Accounts receivable and other receivables are reflected in the Company’s consolidated balance sheets at their estimated collectible amounts. A substantial majority of its accounts receivable are derived from sales to well-known technological clients. The Company follows the allowance method of recognizing uncollectible accounts receivable and other receivables, pursuant to which the Company regularly assesses its ability to collect outstanding customer invoices and make estimates of the collectability of accounts receivable and other receivables. The Company provides an allowance for doubtful accounts when it determines that the collection of an outstanding customer receivable is not probable. The allowance for doubtful accounts is reviewed on a timely basis to assess the adequacy of the allowance. The Company takes into consideration (a) historical bad debts experience, (b) any circumstances of which it is aware of a customer’s or debtor’s inability to meet its financial obligations, (c) changes in its customer or debtor payment history, and (d) its judgments as to prevailing economic conditions in the industry and the impact of those conditions on its customers and debtors. If circumstances change, such that the financial conditions of its customers or debtors are adversely affected and they are unable to meet their financial obligations to the Company, it may need to record additional allowances, which would result in a reduction of its net income. Concentration of credit risk and major customers Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts as at the balance sheet dates. As of March 31, 2022 and 2023, the aggregate amounts of cash and cash equivalents, and restricted cash are RMB67.2 million and RMB72.4 million respectively. To limit exposure to credit risk relating to deposits, the Company primarily place cash deposits with large financial institutions in PRC. The Company conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Company establishes an accounting policy for allowance for doubtful accounts on the individual customer’s financial condition, credit history, and the current economic conditions. As of March 31, 2022 and 2023, the Company recorded RMB0.1 million of allowances for accounts receivable. Major customers and accounts receivable — During the year ended March 31, 2021, the Company had two customers that accounted over 10% of revenues, and revenue from these customers amounted to RMB102.1 million and RMB44.7 million, respectively, relate to Original Equipment Manufacturer (“OEM”)/Original Design Manufacturer (“ODM”) services segment and sales of face mask. Major suppliers — During the year ended March 31, 2021, the Company had no supplier accounted over 10% of total purchases and processing fees. Inventories Inventories of the Company consist of raw materials, finished goods and work in process. Inventories are stated at lower of cost or net realizable value with cost being determined on the weighted average method. Elements of cost in inventories include raw materials, direct labor costs, other direct costs, consignment manufacturing cost and manufacturing overhead. The Company assesses the valuation of inventory and periodically writes down the value for estimated excess and obsolete inventory based upon the product life-cycle. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance and repairs are charged to expenses as incurred. Depreciation of property and equipment are provided using the straight-line method over their estimated useful lives as follows: Useful life Office real estate 48 years Furniture and equipment 3 – 6 years Production and other machineries 5 – 10 years Upon retirement or sale of an asset, the cost of the asset and the related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is credited or charged to other (income) expenses, net. Intangible assets, net Intangible asset results from the acquisition of the licensed software and customer relationships. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. The Company accounts for such licensed software with definite lives and amortized using the straight-line method over its estimated useful life of 3 to 10 years. Impairment of long-lived assets The Company reviews the carrying value of long-lived assets to be held and used when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. No impairment charge was recognized for all periods presented. Equity method investment The Company’s long-term investments consist of equity method investment. Investment in entities in which the Company can exercise significant influence and holds an investment in voting common stock or in-substance common stock (or both) of the investee but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323 (“ASC 323”), Investments-Equity Method and Joint Ventures. Under the equity method, the Company initially records its investment at cost. The Company subsequently adjusts the carrying amount of the investments to recognize the Company’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Company evaluates the equity method investment for impairment under ASC 323. An impairment loss on the equity method investment is recognized in earnings when the decline in value is determined to be other-than-temporary. Fair value of financial instruments Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities. Level 3 Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain unobservable assumptions and projections in determining the fair value assigned to such assets. All transfers between fair value hierarchy levels are recognized by the Company at the end of each reporting period. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risks associated with investment in those instruments. Fair Value Measured or Disclosed on a Recurring Basis Borrowings — Interest rates under the borrowing agreements with the lending parties were determined based on the prevailing interest rates in the market. The Company classifies the valuation techniques that use these inputs as Level 2 fair value measurement. The carrying value of the Company’s borrowings approximates fair value as the borrowing bears interest rates that are similar to existing market rates. Other financial items for disclosure purpose — The fair value of other financial items of the Company for disclosure purpose, including cash and cash equivalents, restricted cash, accounts receivable, other receivables, other current assets, accounts payable, other payables and accrued liabilities, approximate their carrying value due to their short-term nature. Government Grants Government grants are recognized in the balance sheet initially when there is reasonable assurance that they will be received and that the enterprise will comply with the conditions attached to them. When the Company received the government grants but the conditions attached to the grants have not been fulfilled, such government grants are deferred and recorded as deferred revenue. As of March 31, 2022 and 2023, the deferred revenue were RMB nil Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease, right-of-use (“ROU”) assets and lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease, ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. It uses the implicit rate when readily determinable. The operating lease, ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company have elected not to recognize ROU assets and lease liabilities for short-term leases for all classes of underlying assets. Short-term leases are leases with terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise. Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. Revenue recognition The Company derives revenue principally from the sale of mobile phones and accessories. Revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration the Company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. The Company’s revenue is primary derived from (i) OEM and ODM services for well-known brands; (2) its own in-house brands, positioned in the emerging middle class consumer groups and price-sensitive consumers in emerging markets. Refer to Note 18 to the consolidated financial statements for disaggregation of the Company’s revenue by type of product and geography information for the years ended March 31, 2021, 2022 and 2023. For the year ended March 31, 2021, the Company participated in efforts to stem the spread of the COVID-19 epidemic, namely, by serving as a temporary distributor of face masks to an existing overseas client in Brazil. The Company recognizes revenue from sales of face masks upon transfer of control of its products to the customer, which typically occurs upon delivery. The Company’s main performance obligation to its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Delivery of these products occurs at that point of time when the control of the products is transferred to the customer. All the face masks sold with delivery terms entered into on a Free On Board basis at Shenzhen port. The following table disaggregates the Company’s revenue by type of contract for the years ended March 31, 2021, 2022 and 2023: Year ended March 31, 2021 2022 2023 Category Amount Amount Amount RMB RMB RMB (in thousands) OEM/ODM 195,995 273,979 200,450 In-house brands 6,157 1,529 98 Face mask 44,747 - - Total 246,899 275,508 200,548 1) Cooperation with OEM/ODM customers Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties. The Company generates its revenue through product sales, and shipping terms generally indicate when it has fulfilled its performance obligations and passed control of products to its customer, when the goods have been shipped to the customer’s specific location (delivery). Following delivery, the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation to the goods but has no right to return the products (other than for defective products). A receivable is recognized by the Company when the goods are delivered to the customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. Revenue from OEM/ODM customers does not meet the criteria to be recognized over time since 1) it does not have the right of payment for the performance completed to date, 2) its work neither creates or enhances an asset controlled by customers until goods are delivered to the customer, 3) customers do not receive and consume benefits simultaneously provided by its performance. 2) Sales of products for in-house brands For revenue realized in Indian market, additional term of goods return may apply. Under Do Mobile’s policy, end users have a right of return for defective devices within 7 days. At the point of sale, a refund liability and a corresponding adjustment to revenue is recognized for those products expected to be returned. At the same time, Do Mobile has a right to recover the product when customers exercise their right of return so consequently recognizes a right to returned goods asset and a corresponding adjustment to cost of sales. Do Mobile uses its accumulated historical experience to estimate the number of returns on a portfolio level using the expected value method, taking into consideration the type of products. Contract assets and liabilities Contract assets, such as costs to obtain or fulfill contracts, are an insignificant component of the Company’s revenue recognition process. The majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventories and property and equipment, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to the nature of the Company’s products and their respective manufacturing processes. Contract liabilities are mainly advance from customers. Warranty The Company offers a standard product warranty that the product will operate under normal use. For products sold to OEM/ODM customers, the warranty period generally ranges from one to two years from the time of final acceptance. In general, the Company ships free spare parts as product warranty to these customers while the products are sold. For products sold to end users through retailers in India, the warranty period includes a one Value added tax In the PRC, value added tax (the “VAT”) of 17% (before May 1, 2018), 16% (from May 1, 2018 to April 1, 2019) and 13% (after April 1, 2019 until now) on invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The Company reports revenue net of VAT. VIE and its subsidiary in China that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. Cost of sales Cost of sales consists primarily of material costs, direct labor costs, other direct costs, consignment manufacturing cost and manufacturing overhead, which are directly attributable to the production of products. Write-down of inventories to lower of cost or net realizable value is also recorded in cost of sales. Selling and marketing expenses Selling and marketing expenses consist primarily of (i) advertising and market promotion expenses, (ii) shipping expenses and (iii) salaries and welfare for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB0.1 million, RMB0.1 million and RMB nil Research and development costs All research and development costs, including patent application costs, are expensed as incurred. Research and development costs were total of RMB7.2 million, RMB14.1 million and RMB16.0 million for the years ended March 31, 2021, 2022 and 2023, respectively, and are included within general and administrative expenses in the consolidated statements of comprehensive loss. Employee social security and welfare benefits The employees of the Company are entitled to social benefits in accordance with the relevant regulations of the countries in which these companies are incorporated. The social benefits of the employees of the Company in the PRC include medical care, welfare subsidies, unemployment insurance, employment housing fund and pension benefits. The Company’s subsidiary in India is also required to pay for employee social benefits based upon certain percentages of employees’ salaries in accordance with the relevant local regulation. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB0.4 million, RMB1.1 million and RMB1.3 million for the years ended March 31, 2021, 2022 and 2023, respectively. Borrowing cost Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the consolidated statement of comprehensive loss in the period in which they are incurred. Income taxes Income taxes are accounted for using the asset and liability method as prescribed by ASC 740 “Income Taxes.” Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance would be provided for those deferred tax assets for which if it is more likely than not that the related benefit will not be realized. Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The Company recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive income. The Company did not recognize any interest and penalties associated with uncertain tax positions for the years ended March 31, 2021, 2022 and 2023. As of March 31, 2022 and 2023, the Company did not have any significant unrecognized uncertain tax positions. Statutory reserves Pursuant to the laws applicable to the PRC, domestic PRC entities must make appropriations from after-tax profit to non-distributable reserves funds. Subject to the limits of 50% of the entity’s registered capital, the statutory surplus reserve fund requires annual appropriations of 10% of after-tax profit (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). These reserve funds can only be used for specific purposes and are not distributable as cash dividends. Appropriation has been made to these statutory reserve funds of RMB0.2 million, RMB nil nil Non-controlling interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheets and net loss and other comprehensive loss are attributed to controlling and non-controlling interests. Foreign currency translation and transactions The reporting currency of the Company is the RMB. The Company’s subsidiaries, consolidated VIE and VIE’s subsidiaries with operations in the PRC, Hong Kong, and other jurisdictions generally use their respective local currencies as their functional currencies, except that UTime Trading uses United States dollar (“US$”) as functional currency. The financial statements of the Company’s subsidiaries, other than the consolidated VIE and VIE’s subsidiary with the functional currency in RMB, are translated into RMB using the exchange rate as of the balance sheet date for assets and liabilities, historical exchange rate for equity amounts and the average rate during the reporting period for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. In the financial statements of the Company’s subsidiaries and consolidated VIE and VIE’s subsidiary, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in other (income) expenses, net in the consolidated statements of comprehensive loss. Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss and consolidated statements of cash flows from RMB into USD as of and for the year ended March 31, 2023 are solely for the convenience of the reader and has been made at the exchange rate quoted by the central parity of RMB against the USD by the People’s Bank of China on March 31, 2023 of USD1.00 = RMB6.8717. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on March 31, 2023, or at any other rate. Comprehensive loss Comprehensive loss is comprised of the Company’s net loss and comprehensive loss. The component of comprehensive loss is consisted solely of foreign currency translation adjustments. Related parties 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 operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. Segment reporting FASB ASC Topic 280, “Segment Reporting” establishes standards for reporting information about reportable segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. Management views the business as consisting of revenue streams; however, they do not produce reports for, assess the performance of, or allocate resources to these revenue streams based upon any asset-based metrics, or based upon income or expenses, operating income or net income. Therefore, the Company believes that it operates in one business segment. Substantively all of the Company’s long-lived assets are located in the PRC. Loss per share Basic net loss per share is the amount of net loss available to each share of ordinary shares outstanding during the reporting period. Diluted net loss per share is the amount of net loss available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares, if any. Basic and diluted loss per share for each of the periods presented are calculated as follows: Year ended March 31, 2021 2022 2023 RMB RMB RMB Numerator: Net loss attributable to UTime Limited, basic and diluted (16,627 ) (38,833 ) (87,616 ) Denominator: Weighted average shares outstanding, basic and diluted 4,517,793 8,164,771 11,229,985 Net loss attributable to UTime Limited per ordinary share: Basic and diluted (3.68 ) (4.76 ) (7.80 ) Acquisitions The Company accounts for acquisitions of an asset or group of similar identifiable assets that do not meet the definition of a business as an asset acquisition using the cost accumulated method, whereby the cost of the acquisition, including certain transaction costs, is allocated to the assets acquired on the basis of their relative fair values. No goodwill is recognized in an asset acquisition. Intangible assets acquired in an asset acquisition for use in research and development activities which have no alternative future use are expensed as in-process research and development on the acquisition date. Intangible assets acquired for use in research and development activities which have an alternative future use are capitalized as in-process res |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4 — ACCOUNTS RECEIVABLE, NET As of March 31, 2022 2023 RMB RMB Accounts receivable 22,543 52,444 Allowance for doubtful accounts (126 ) (136 ) Accounts receivable, net 22,417 52,308 The Company analyzed the collectability of accounts receivable based on historical collection and the customers’ intention of payment. As a result of such analysis, the allowance for doubtful accounts was as follows: 2021 2022 2023 RMB RMB RMB Balance at beginning of year 838 878 126 Additions for the year 50 — — Written off for the year — (748 ) — Foreign currency translation difference (10 ) (4 ) 10 Balance at the end of year 878 126 136 As of March 31, 2022 and 2023, the allowance for doubtful accounts amounted to RMB0.1 million. The Company determined that the collection of these customers’ receivable is not probable due to financial difficulties experienced by related customers. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets, Net | 12 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses and Other Current Assets, Net [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | NOTE 5 — PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET As of March 31, 2022 2023 RMB RMB Advance to suppliers 40,620 64,827 Input GST/IVA 568 412 Receivables from supply chain service provider 4,829 7,648 Expected return assets 1 1 Other receivables 21,460 24,282 Allowance for doubtful accounts (1,663 ) (1,662 ) Prepaid expenses and other current assets, net 65,815 95,508 As of March 31, 2022, other receivables consisted of deposits for leased equipment and factory building and utility amounted to RMB5 million and RMB8 million. As of March 31, 2023, other receivables consisted of deposits for leased equipment and VAT accrued for purchase of raw materials amounted to RMB2 million and RMB7 million. The Company analyzed the collectability of other current assets based on historical collection. As a result of such analysis, the movement of allowance for doubtful accounts was as follows: As of March 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of year 4,006 674 1,663 Additions (reversal) for the year (886 ) 3,406 — Written off for the year (2,446 ) (2,359 ) — Foreign currency translation difference — (58 ) (1 ) Balance at the end of year 674 1,663 1,662 As of March 31, 2022 and 2023, the allowance for doubtful accounts on advance to suppliers of RMB1.7 million were primarily consist of unrecoverable prepayment related to cancellation of abundant purchase orders caused by termination of cooperation with certain OEM/ODM customers, significant decline in operating activities in India and VAT recoverable from certain supply chain companies. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6 — INVENTORIES As of March 31, 2022 2023 RMB RMB Raw materials 32,004 12,294 Work in progress 1,326 2,972 Finished goods 13,533 11,217 Total inventory, gross 46,863 26,483 Inventory reserve (10,792 ) (10,314 ) Total inventory, net 36,071 16,169 The Company analyzed the valuation of inventory and disposed obsolete inventories. As a result of such analysis, the movement of inventory reserve was as follows: Year ended March 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of year 5,962 13,393 10,792 Additional charge (written off), net 7,589 (2,467 ) 407 Foreign currency translation difference (158 ) (134 ) (885 ) Balance at the end of year 13,393 10,792 10,314 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 7 — PROPERTY AND EQUIPMENT, NET As of March 31, 2022 2023 RMB RMB Office real estate 20,995 20,996 Furniture and equipment 5,100 6,267 Production and other machineries 29,713 55,015 Total 55,808 82,278 Less: accumulated depreciation 17,538 20,849 Property and equipment, net 38,270 61,429 Included in furniture and equipment is computer software with net values of RMB0.04 million and RMB0.02 million as of March 31, 2022 and 2023, respectively. Depreciation charged to expense amounted to RMB3.2 million, RMB3.3 million and RMB4.6 million for the years ended March 31, 2021, 2022 and 2023, respectively. No impairment for property and equipment was recorded for the years ended March 31, 2021, 2022 and 2023. Details of production and other machineries lease out under operating lease are as follows: As of March 31, 2022 2023 RMB RMB Cost 29,578 29,578 Less: accumulated depreciation and amortization 9,436 12,094 Net book value 20,142 17,484 |
Lease Liabilities
Lease Liabilities | 12 Months Ended |
Mar. 31, 2023 | |
Lease Liabilities [Abstract] | |
LEASE LIABILITIES | NOTE 8 — LEASE LIABILITIES Operating leases as lessor The Company has non-cancellable agreements to lease our equipment to tenant under operating lease for 1 to 3 years. The leases do not contain contingent payments. At March 31, 2023, the minimum future rental income to be received is as follows: Year ending March 31, RMB 2024 804 2025 201 Total 1,005 For the years ended March 31, 2021, 2022 and 2023, the operating lease income of RMB2.4 million, RMB2.9 million and RMB3.1 million, respectively, net of the depreciation charges of corresponding equipment of RMB2.3 million, RMB2.7 million and RMB2.9 million, respectively, were recorded in other expenses, net in the consolidated statements of comprehensive loss. Operating leases as lessee The Company leases space under non-cancelable operating leases for office and manufacturing locations and production equipment. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Most leases include option to renew in condition that it is agreed by the landlord before expiry. Therefore, the majority of renewals to extend the lease terms are not included in its right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluate the renewal options and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. As most of the Company’s leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The components of the Company’s lease expense are as follows: Year ended March 31, 2021 2022 2023 RMB RMB RMB Operating lease cost 1,016 2,265 3,289 Short-term lease cost 1,163 973 — Lease cost 2,179 3,238 3,289 Supplemental cash flow information related to its operating leases was as follows for the years ended March 31, 2021, 2022 and 2023: Year ended March 31, 2021 2022 2023 RMB RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases 1,325 1,249 4,514 Maturities of its lease liabilities for all operating leases are as follows as of March 31, 2023: RMB USD 2024 4,575 666 2025 4,575 666 2026 and after 7,356 1,071 Total lease payments 16,506 2,403 Less: Interest (1,957 ) (285 ) Present value of lease liabilities 14,549 2,118 Less current portion, record in current liabilities (3,673 ) (535 ) Present value of lease liabilities 10,876 1,583 The weighted average remaining lease terms and discount rates for all of its operating leases were as follows as of March 31, 2022 and 2023: As of As of 2022 2023 Remaining lease term and discount rate: RMB RMB Weighted average remaining lease term (years) 4.56 3.61 Weighted average discount rate 7.03 % 7.00 % |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT | NOTE 9 — EQUITY METHOD INVESTMENT During the year ended March 31, 2018, the Company invested an aggregate amount of RMB1.4 million in exchange for 35% of the equity interest of Philectronics Inc. (“Philectronics”), which was recorded under the equity method. For the year ended March 31, 2021, 2022 and 2023, the Company recorded its pro-rata share of losses in Philectronics of RMBnil, as other (income) expenses, net in the consolidated statements of comprehensive loss. The Company recorded RMB0.8 million, RMBnil and RMBnil impairment losses on its investment during the years ended March 31, 2021, 2022 and 2023, respectively, as other expenses, net in the consolidated statements of comprehensive loss. Philectronics has net liability position and temporarily ceased its operation without foreseeable plan for resuming its business operation. Year ended March 31, 2022 2023 RMB RMB Cost 1,425 1,425 Less: accumulated impairment (1,425 ) (1,425 ) Equity method investment, net - - |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Mar. 31, 2023 | |
Other Non-Current Assets [Abstract] | |
OTHER NON-CURRENT ASSETS | NOTE 10 — OTHER NON-CURRENT ASSETS As of March 31, 2022 2023 RMB RMB Prepayment for property and equipment, and intangible asset 541 - Total other non-current assets 541 - |
Borrowings
Borrowings | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 11 — BORROWINGS As of March 31, Note 2022 2023 RMB RMB Short-term borrowings China Resources Bank of Zhuhai Co., Ltd. Loan 1 (a) 22,000 - Secured loan (b) 4,980 7,800 Bank of Communications (c) 2,500 - Baosheng County Bank 1 (d) 2,300 - China Resources Bank of Zhuhai Co., Ltd. Loan 2 (e) 2,000 - PingAn Bank Co., Ltd. (f) 2,000 2,000 China Resources Bank of Zhuhai Co., Ltd. Loan 3 (g) - 22,000 China Resources Bank of Zhuhai Co., Ltd. Loan 4 (h) - 2,000 Baosheng County Bank 2 (i) - 2,400 WeBank Co., Ltd. 1 (j) - 1,990 WeBank Co., Ltd. 2 (k) - 1,000 WeBank Co., Ltd. 3 (l) - 1,745 China Resources SZITIC Trust Company Limited (m) - 3,000 Industrial and Commercial Bank of China (“ICBC”) Loan (n) - 5,000 Industrial and Commercial Bank of China (“ICBC”) Loan (o) 5,000 35,780 53,935 Long-term borrowings Shenzhen Rural Commercial Bank loan 1 (p) 7,000 6,370 Shenzhen Rural Commercial Bank loan 2 (q) 1,820 1,580 8,820 7,950 Representing by: Current portion of long-term borrowings 800 1,080 Non-current portion of long-term borrowings 8,020 6,870 (a) On November 13, 2020, UTime SZ entered into a credit agreement with China Resources Bank of Zhuhai Co., Ltd., according to which China Resources Bank of Zhuhai Co., Ltd. agreed to provide UTime SZ with a credit facility of up to RMB22 million with a two-year term from November 13, 2020 to November 13, 2022. On November 18, 2020, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd. to borrow RMB22 million as working capital for one year at an annual effective interest rate of 5.5%. The Company repaid the loan on November 18, 2021 and borrowed RMB22 million as working capital for one year at an annual effective interest rate of 5.5% on November 22, 2021. The Company repaid the loan on November 21, 2022. The loan is secured by the office owned by UTime SZ and guaranteed by UTime GZ, Mr. Bao and his spouse. (b) In November 2020, UTime SZ and TCL Commercial Factoring (Shenzhen) Company Limited (“TCL Factoring”) executed a factoring agreement, pursuant to which UTime SZ received a revolving credit facility and may submit unlimited number of loan applications, so long as, among other conditions, the balance of the loan does not exceed the credit line. The annual effective interest rate range is from 8.0% to 9.0%. TCL Factoring has the right of recourse to UTime SZ, and as a result, these transactions were recognized as secured borrowings. UTime SZ agreed to pledge to TCL Factoring its accounts receivable from TCL Mobile Communication Company Limited (“TCL Huizhou”). This credit facility was also guaranteed respectively by Mr. Bao and UTime GZ, each for an amount up to RMB20 million. UTime SZ agreed not to withdraw, utilize or dispose the accounts receivables paid to it by TCL Huizhou without the prior consent of TCL Factoring. As of March 31, 2022 and 2023, UTime SZ obtained loans under the factoring agreement at the total amount of RMB4.98 million and RMB7.8 million, respectively. (c) In July 2021, UTime SZ entered into a credit agreement with Bank of Communications to borrow RMB10 million for an unfixed term. On July 19, 2021, UTime SZ obtained a loan under this working capital loan agreement at the amount of RMB3 million which is due on July 6, 2022. The loan was guaranteed by Mr. Bao and his spouse. The loan bears a fixed interest rate of 4.6% per annum and will be due on July 6, 2022. The loan was fully repaid in July 2022. (d) In August 2021, UTime SZ entered into a credit line agreement with Shenzhen Nanshan Baosheng County Bank Co., Ltd. (“Baosheng County Bank”) according to which Baosheng County Bank agreed to provide UTime SZ with a credit facility of up to RMB3 million with a one-year term from July 28, 2021 to July 28, 2022. On August 23, 2021, UTime SZ entered into a working capital loan agreement with Baosheng County Bank to borrow RMB3 million as working capital for one year at an annual effective interest rate of 8.0%. It is payable at monthly installment of RMB0.1 million from September 2021 to August 2022, with a balloon payment of the remaining balance in the last installment. The loan was fully repaid in August 2022. (e) On December 2, 2021, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd., to borrow RMB2 million as working capital at an annual effective interest rate of 8.0%. The loan was repaid in October 2022. (f) In November 2021, UTime SZ entered into a credit agreement with PingAn Bank Co., Ltd. to borrow RMB2 million for a term of 3 years, with an annual effective rate of 12.96%. The loan is guaranteed by Mr. Bao and his spouse. As of March 31, 2023 UTime SZ obtained loans under the credit agreement at the total amount of RMB2 million which will be due on November 2023. (g) On November 24, 2022, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd., to borrow RMB22 million as working capital at an annual effective interest rate of 5.5%. The loan is secured by the office owned by UTime SZ and guaranteed by UTime GZ, Mr. Bao and his spouse. The loan will be due in November 2023. (h) On December 5, 2022, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd., to borrow RMB2 million as working capital at an annual effective interest rate of 8.0%. The loan will be due on October 25, 2023. (i) On August 31, 2022, UTime SZ entered into a credit line agreement with Shenzhen Nanshan Baosheng County Bank Co., Ltd. (“Baosheng County Bank”) according to which Baosheng County Bank agreed to provide UTime SZ with a credit facility of up to RMB3 million with a one-year term from August 31, 2022 to August 31, 2023. On August 31, 2022, UTime SZ entered into a working capital loan agreement with Baosheng County Bank to borrow RMB3 million as working capital for one year at an annual effective interest rate of 8.0%. It is payable at monthly installment of RMB0.1 million from September 2021 to August 2022, with a balloon payment of the remaining balance in the last installment. The loan is secured by the office owned by UTime SZ and guaranteed by UTime Guangxi, Mr. Bao and his spouse. (j) On May 19, 2022, UTime SZ entered into a credit line agreement with WeBank Co., Ltd. (“WeBank”) according to which WeBank agreed to provide UTime SZ with a credit facility of up to RMB1.99 million with a two-year term from May 19, 2022 to May 19, 2024, with an annual effective interest rate of 9.45%. The loan is guaranteed by Mr. Bao. As of March 31, 2023 UTime SZ loans under the credit agreement was RMB1.99 million. (k) On May 19, 2022, UTime SZ entered into a credit line agreement with WeBank Co., Ltd. (“WeBank”) according to which WeBank agreed to provide UTime SZ with a credit facility of up to RMB1 million with a two-year term from May 19, 2022 to May 19, 2024, with an annual effective interest rate of 9%. The loan is guaranteed by Mr. Bao. As of March 31, 2023 UTime SZ loans under the credit agreement was RMB1 million. (l) On May 18, 2022, UTime SZ entered into a credit line agreement with WeBank Co., Ltd. (“WeBank”) according to which WeBank agreed to provide UTime SZ with a credit facility of up to RMB3 million with a two-year term from May 18, 2022 to May 18, 2024, with an annual effective interest rate of 11.34%. The loan is guaranteed by Mr. Bao. As of March 31, 2023 UTime SZ loans under the credit agreement was RMB1.7 million. (m) On January 10, 2023, UTime SZ entered into a working capital loan agreement with China CITIC Bank, to borrow RMB3 million as working capital at an annual effective interest rate of 4.35%. The loan will be due in January 2024. (n) On December 2, 2022, UTime SZ entered into a loan agreement with Industrial and Commercial Bank of China (“ICBC”), to borrow RMB 5 million as working capital at an annual effective interest rate of 3.75%. The loan will be due in 12 months. (o) On December 7, 2022, UTime SZ entered into a loan agreement with Industrial and Commercial Bank of China (“ICBC”), to borrow RMB 5 million as working capital at an annual effective interest rate of 3.75%. The loan will be due in 12 months. (p) On June 29, 2021, UTime SZ entered into a credit agreement with Shenzhen Rural Commercial Bank to borrow RMB7 million for a term of 3 years, which is payable at monthly installment of RMB0.07 million from August 2022 to July 2024, with a balloon payment of the remaining balance in the last installment. The loan bears a fixed interest rate of 4.5% per annum. The loan was secured by real estate owned by Mr. Bao and guaranteed by Mr. Bao. As of March 31, 2022 and 2023, the balance of the loan was RMB7 million and RMB6.4 million, respectively. Out of the total outstanding loan balance, current portion amounted were RMB0.56 million and RMB0.84 million, which is presented as current liabilities in the consolidated balance sheet and the remaining balance of RMB6.44 million and RMB5.53 million, which is presented as non-current liabilities in the consolidated balance sheet as of March 31, 2022 and 2023, respectively. (q) In July 2021, UTime SZ entered into a credit agreement with Shenzhen Rural Commercial Bank to borrow RMB2 million for a term of 3 years, which is payable at monthly installment of RMB0.02 million from July 2021 to July 2024, with a balloon payment of the remaining balance in the last installment. The loan is secured by real estate owned by Mr. Bao and guaranteed by Mr. Bao. As of March 31, 2022 and 2023, the balance of the loan are RMB1.82 million and RMB1.58 million, respectively. Out of the total outstanding loan balance, current portion amounted were RMB0.24 million and RMB0.24 million, which is presented as current liabilities in the consolidated balance sheet and the remaining balance of RMB1.82 million and RMB1.58 million, which is presented as non-current liabilities in the consolidated balance sheet as of March 31, 2022 and 2023, respectively. |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 12 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLES AND ACCRUED LIABILITIES | NOTE 12 — OTHER PAYABLES AND ACCRUED LIABILITIES As of March 31, 2022 2023 RMB RMB Advance from customers 16,607 17,087 Accrued payroll 10,220 11,910 VAT payable 1,484 7,292 Refund liabilities 1 1 Product warranty 50 50 Other payables 15,786 18,432 Total 44,148 54,772 As of March 31, 2022, other payables mainly included RMB6.8 million advance from supply chain service provider, RMB3.4 million advance refundable to a customer and RMB2.3 million payable for materials provided by a customer for processing and assembling mobile phones. As of March 31, 2023, other payables mainly included RMB6.8 million advance from supply chain service provider, RMB2.2 million advance refundable to a customer and RMB3 million refundable to a vendor. |
Other Expenses_(Income), Net
Other Expenses/(Income), Net | 12 Months Ended |
Mar. 31, 2023 | |
Other (Income) Expenses, Net [Abstract] | |
OTHER EXPENSES/(INCOME), NET | NOTE 13 — OTHER EXPENSES/(INCOME), NET Year ended March 31, 2021 2022 2023 RMB RMB RMB Exchange losses (gains) 3,703 2,316 (3,179 ) Provision for doubtful accounts, net (836 ) 3,406 - Impairment of intangible asset - 348 - Government grants (1,289 ) (2,851 ) (594 ) Loss on equity method investment 833 Others 464 109 79 Total 2,875 3,328 (3,694 ) |
Income Tax Benefits
Income Tax Benefits | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Benefits [Abstract] | |
INCOME TAX BENEFITS | NOTE 14 — INCOME TAX BENEFITS Net loss before taxes of RMB17.0 million, RMB39.4 million and RMB90.2 million were attributed by non-U.S. entities for the years ended March 31, 2021, 2022 and 2023, respectively. Cayman Islands UTime Limited is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. British Virgin Islands Bridgetime is incorporated in the British Virgin Islands and is not subject to tax on income or capital gains under current British Virgin Islands law. In addition, dividend payments are not subject to withholdings tax in British Virgin Islands. Hong Kong UTime HK and UTime Trading, which were incorporated in Hong Kong, are subject to a two-tiered income tax rates for taxable income earned in Hong Kong with effect from April 1, 2018. The first HK$2 million of profits earned will be taxed at 8.25%, while the remaining profits will continue to be taxed at the existing 16.5% tax rate. Additionally, payments of dividends by the subsidiary incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. India Do Mobile, which was incorporated in India, is subject to a corporate income tax rate of 25% on the assessable profits, plus any surcharge if required. Mexico Gesoper and Firts, which were incorporated in Mexico, are subject to federal corporate income tax rate of 30% on the assessable profits. PRC In accordance with the Enterprise Income Tax Law (“EIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to Enterprise Income Tax (“EIT”) at a uniform rate of 25%. The subsidiary, VIE and subsidiary of VIE in the PRC are subject to a uniform income tax rate of 25% for the years presented. UTime SZ is regarded as a Certified High and New Technology Enterprise (“HNTE”) and entitled to a favorable statutory tax rate of 15%. Preferential tax treatment of UTime SZ as HNTE from November 2, 2015 to December 23, 2024 has been granted by the relevant tax authorities. UTime SZ is entitled to a preferential tax rate of 15% which is subject to review by State Taxation Administration every three years. As a result of these preferential tax treatments, the reduced tax rates applicable to UTime SZ for the years ended March 31, 2021, 2022 and 2023 are 15%. However, UTime SZ has not enjoyed the above-mentioned preferential tax treatments for the years ended March 31, 2021, 2022 and 2023 due to its loss position and as such there is no impact of these tax holidays on net loss per share. According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in research and development activities are entitled to claim an additional tax deduction amounting to 50% of the qualified research and development expenses incurred in determining its tax assessable profits for that year. The additional tax deduction has been increased from 50% of the qualified research and development expenses to 75%, effective from January 1, 2018 according to a tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). The additional tax deduction has been increased from 75% of the qualified research and development expenses to 100%, effective from October 1, 2022 according to a tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2022. In general, the PRC tax authority has up to five years to conduct examinations of the Company’s tax filings. In addition, under applicable PRC tax laws and regulations, arrangements and transactions among related parties may be subject to audit or scrutiny by the PRC tax authorities within ten years after the taxable year when the arrangements or transactions are conducted. The Company is subject to the applicable transfer pricing rules in the PRC in connection to the transactions between its subsidiaries, VIE and subsidiaries of VIE located inside and outside PRC. Withholding tax on undistributed dividends Under the EIT Law and its implementation rules, the profits of a foreign-invested enterprise arising in 2008 and thereafter that are distributed to its immediate holding company outside the PRC are subject to withholding tax at a rate of 10%. A lower withholding tax rate will be applied if there is a beneficial tax treaty between the PRC and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be eligible, with approval of the PRC local tax authority, to be subject to a 5% withholding tax rate under Arrangement between the Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the Double Tax Avoidance Arrangement, if such holding company is considered to be a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign-invested enterprise distributing the dividends. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to withholding tax at a rate of 10%. The Company does not intend to have any of its subsidiaries located in PRC distribute any undistributed profits of such subsidiaries in the foreseeable future, but rather expects that such profits will be reinvested by such subsidiaries for their PRC operations. Accordingly, no withholding tax was recorded as of March 31, 2021, 2022 and 2023. The current and deferred components of income taxes appearing in the consolidated statements of comprehensive loss are as follows: Year ended March 31, 2021 2022 2023 RMB RMB RMB Current tax benefits 364 - - Deferred tax benefit - 46 171 Total income tax benefit 364 46 171 The principal components of the deferred tax assets and liabilities are as follows: As of March 31, 2022 2023 RMB RMB Deferred income tax assets (liabilities) : Impairment on receivables 2,590 450 Inventories 3,358 1,889 Deferred revenue 977 2,174 Accrued expenses and employee benefits 1,411 3,258 Equity method investment and others 1,075 - Net operating loss carry forwards 21,678 27,977 Total gross deferred tax assets 31,089 35,748 Less: valuation allowances (27,747 ) (32,490) Total deferred tax assets, net of valuation allowance 3,342 3,258 Prepaid expenses and other current assets (1,299 ) (3,258 ) Unrealized foreign exchange difference and others (2,217 ) - Amortization & impairment of intangible asset (292 ) (295 ) Deferred tax liabilities (466 ) (295 ) The Company 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 carry forward periods, the Company’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 Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. While the Company has optimistic plans for its business strategy, it determined that a full valuation allowance was necessary against all net deferred tax assets as of March 31, 2022 and 2023, given the current and expected near term losses and the uncertainty with respect to its ability to generate sufficient profits from its business model. As of March 31, 2022, the Company’s total net operating loss carry forwards of RMB116.2 million, out of which, RMB83.2 million would expire from 2022 through 2031, RMB33.9 million can be carried forward indefinitely. As of March 31, 2023, the Company’s total net operating loss carry forwards was RMB152.0 million out of which, RMB109.8 million would expire from 2023 through 2032, RMB42.2 million can be carried forward indefinitely. Reconciliation between total income tax benefits and the amount computed by applying the statutory income tax rate to income before taxes is as follows: Year ended March 31, 2021 2022 2023 % % % Statutory rate in PRC 25 25 25 Effect of preferential tax treatment (2 ) (4 ) (1 ) Effect of different tax jurisdiction (6 ) (4 ) (19 ) Effect of permanence differences (1 ) (2 ) - Research and development super-deduction 5 4 2 Changes in valuation allowance (21 ) (19 ) (7 ) Over provision in prior year 2 - - Total income tax benefits 2 - - The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2022 and 2023, the Company did not have any significant uncertain tax positions. The Company is subject to taxation in China, Hong Kong and India. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB0.1 million. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. |
Related Parties Balances and Tr
Related Parties Balances and Transactions | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES BALANCES AND TRANSACTIONS | NOTE 15 — RELATED PARTIES BALANCES AND TRANSACTIONS Related parties with whom the Company had transactions are: Related Parties Relationship Mr. Bao Controlling shareholder of the Company Mr. He Beneficial shareholder of the Company Mr. Yu Chief Financial Officer of the Company Philectronics An equity method investee of the Company Grandsky Phoenix Limited 100% owned by Mr. Bao (1) Due from related parties As of March 31, 2022 2023 RMB RMB Philectronics 486 536 Mr. Bao 47 - GRANDSKY PHOENIX LIMITED 889 - Mr. Yu - 48 1,422 584 (2) Due to related parties As of March 31, 2022 2023 RMB RMB Mr. Bao 3,819 4,779 Philectronics 482 482 GRANDSKY PHOENIX LIMITED 198 239 4,499 5,500 (1) On September 17, 2021, Mr. Bao entered into a loan agreement with China Resources Bank of Zhuhai Co., Ltd. and borrowed RMB3.0 million (US$0.5 million). The loan is restricted on purpose only to support daily operation for the Companies that is controlled by Mr. Bao. The loan was repaid on March 17, 2022 and the agreement was renewed on March 18, 2022. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Mar. 31, 2023 | |
Shareholders’ Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 16 — SHAREHOLDERS’ EQUITY As of March 31, 2021, the Company had 140,000,000 authorized ordinary shares, and 4,517,793 ordinary shares were issued and outstanding, respectively. On April 8, 2021, the Company completed its IPO on Nasdaq Capital Market. In the offering, 3,750,000 of the Company’s ordinary shares were issued and sold to the public at a price of US$4 per share for gross proceeds of US$15 million. The Company recorded net proceeds (after deducting underwriting discounts and commissions and other offering fees and expenses) of approximately $13.9 million (approximately RMB88.2 million) from the offering. As of March 31, 2023, the Company had 140,000,000 authorized ordinary shares, and 8,267,793 ordinary shares were issued and outstanding, respectively. On June 29, 2022, the board of directors of the Company approved the 2022 Performance Incentive Plan (the “2022 PIP”). Under the 2022 PIP, the Company has reserved a total of 5,300,000 shares of common stock for issuance as or under awards to be made to the participants of the Company. On November 7, 2022, 5,300,000 shares of common stock were issued and granted under the 2022 PIP. Total fair value of the shares of common stock granted was calculated at $9,301,500 as of the date of issuance at $1.755 per share. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17 — COMMITMENTS AND CONTINGENCIES (a) Capital commitment At March 31, 2023, the Company had no capital commitments. (b) Legal proceedings From time to time, the Company is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of these unresolved matters, individually and in the aggregate, is likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company has not recorded any material liabilities in this regard as of March 31, 2022 and 2023. However, litigation is subject to inherent uncertainties and the Company’s view of these matters may change in the future. If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the Company’s financial position and results of operations for the periods in which the unfavorable outcome occurs. |
Revenue and Geography Informati
Revenue and Geography Information | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
REVENUE AND GEOGRAPHY INFORMATION | NOTE 18 — REVENUE AND GEOGRAPHY INFORMATION Year ended March 31, 2021 2022 2023 RMB RMB RMB Feature phone 144,032 111,066 106,279 Smart phone 56,885 154,143 73,819 Face mask 44,747 - - Others 1,235 10,299 20,449 Total 246,899 275,508 200,547 The Company’s sales breakdown based on location of customers is as follows: Year ended March 31, 2021 2022 2023 RMB RMB RMB Mainland China 112,400 70,314 82,481 Hong Kong 30,030 18,949 14,228 India 6,157 1,529 97 Africa 19,536 25,905 39,515 The United States 17,277 28,154 18,158 Mexico - 12,372 29,085 South America 45,743 118,285 951 Others 15,756 - 16,032 Total 246,899 275,508 200,547 The location of the Company’s long-lived assets is as follows: As of March 31, 2022 2023 RMB RMB PRC 54,543 74,438 India 46 19 Mexico - 3 Total 54,589 74,460 Pursuant to ASC 280-10-50-41, the other non-current assets of RMB0.5 million and RMBnil |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Mar. 31, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 19 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company performed a test on the restricted net assets of consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The amounts restricted include paid-in capital, capital surplus and statutory reserves, after intercompany eliminations, as determined pursuant to PRC generally accepted accounting principles, totaling RMB71.9 million and RMB72.1 million as of March 31, 2022 and 2023. The subsidiaries did not pay any dividend to the parent for the periods presented. For the purpose of presenting parent only financial information, the Company records investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiary” and the income of the subsidiary is presented as “Income from equity method investments.” Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. BALANCE SHEETS As of March 31, 2022 2023 RMB RMB ASSETS Current assets Cash and cash equivalents 1 2 Prepaid expenses and other current assets 23,195 25,109 Inter-company receivable 73,345 79,393 Non-current assets Investment in subsidiary 1,610 (18,929 ) Total assets 98,151 85,575 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Inter-company payable 31,492 35,634 Due to related parties 289 313 Other payables and accrued liabilities 1,382 5,539 Total liabilities 33,163 41,486 Shareholders’ equity Preference share, par value US$0.0001; Authorized:10,000,000 shares; Nil issued and outstanding as of March 31, 2022 and March 31, 2023, respectively - - Ordinary shares, par value US$0.0001; Authorized:140,000,000 shares; Issued and outstanding: 8,267,793 shares as of March 31, 2022 and 13,567,793 shares as of March 31, 2023 5 9 Additional paid-in capital 152,236 216,504 Accumulated deficit (88,277 ) (175,893 ) Accumulated other comprehensive income 1,024 3,469 Total shareholder’s equity 64,988 44,089 Total liabilities and shareholders’ equity 98,151 85,575 STATEMENTS OF COMPREHENSIVE LOSS Year ended March 31, 2021 2022 2023 RMB RMB RMB Loss from equity method investments (12,618 ) (32,350 ) (18,396 ) Operating expenses (4,009 ) (6,483 ) (69,220 ) Net loss (16,627 ) (38,833 ) (87,616 ) Foreign currency translation difference 1,868 (377 ) 2,445 Comprehensive loss (14,759 ) (39,210 ) (85,171 ) STATEMENTS OF CASH FLOWS Year ended March 31, 2021 2022 2023 RMB RMB RMB CASH FLOW FROM OPERATING ACTIVTIES Net loss (16,627 ) (38,833 ) (87,616 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Equity loss of subsidiaries 12,618 32,350 18,396 Share-based compensation and expenses - - 63,656 Changes in operating assets and liabilities: Prepaid expenses and other current assets (8,424 ) (1,173 ) - Inter-company payable (i) 12,206 8,000 1,539 Related parties (23 ) - - Other payables and accrued liabilities 131 1,269 4,026 Net cash (used in) provided by operating activities (119 ) 1,613 1 Effect of exchange rate changes on cash and cash equivalent and restricted cash 125 (1,618 ) - Net change in cash and cash equivalent 6 (5 ) 1 Cash and cash equivalents, beginning of year - 6 1 Cash and cash equivalents, end of year 6 1 2 (i) For the year ended March 31, 2022, UTime HK received the IPO proceeds of RMB88.2 million and made down payment for financing services of RMB19 million on behalf of UTime Limited. The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of March 31, 2022 and 2023, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20 — SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, VIE and VIE’s subsidiaries for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries, VIE and VIE’s subsidiaries are eliminated. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Management evaluates these estimates and assumptions on a regular basis. Significant accounting estimates reflected in the Company’s consolidated financial statements include but are not limited to estimates and judgments applied in the allowance for receivables, write down of other assets, estimated useful lives of property and equipment, impairment on inventory, sales return, product warranties, the valuation allowance for deferred tax assets and income tax and provision for employee benefits. Actual results could differ from those estimates and judgments. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments with original maturities of three months or less at the date of purchase, that are readily convertible to known amounts of cash and have insignificant risk of changes in value related to changes in interest rates. |
Restricted cash | Restricted cash Restricted cash consisted of collateral representing cash deposits for long-term borrowings. |
Accounts receivable, net | Accounts receivable, net Accounts receivable and other receivables are reflected in the Company’s consolidated balance sheets at their estimated collectible amounts. A substantial majority of its accounts receivable are derived from sales to well-known technological clients. The Company follows the allowance method of recognizing uncollectible accounts receivable and other receivables, pursuant to which the Company regularly assesses its ability to collect outstanding customer invoices and make estimates of the collectability of accounts receivable and other receivables. The Company provides an allowance for doubtful accounts when it determines that the collection of an outstanding customer receivable is not probable. The allowance for doubtful accounts is reviewed on a timely basis to assess the adequacy of the allowance. The Company takes into consideration (a) historical bad debts experience, (b) any circumstances of which it is aware of a customer’s or debtor’s inability to meet its financial obligations, (c) changes in its customer or debtor payment history, and (d) its judgments as to prevailing economic conditions in the industry and the impact of those conditions on its customers and debtors. If circumstances change, such that the financial conditions of its customers or debtors are adversely affected and they are unable to meet their financial obligations to the Company, it may need to record additional allowances, which would result in a reduction of its net income. |
Concentration of credit risk and major customers | Concentration of credit risk and major customers Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents, restricted cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts as at the balance sheet dates. As of March 31, 2022 and 2023, the aggregate amounts of cash and cash equivalents, and restricted cash are RMB67.2 million and RMB72.4 million respectively. To limit exposure to credit risk relating to deposits, the Company primarily place cash deposits with large financial institutions in PRC. The Company conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Company establishes an accounting policy for allowance for doubtful accounts on the individual customer’s financial condition, credit history, and the current economic conditions. As of March 31, 2022 and 2023, the Company recorded RMB0.1 million of allowances for accounts receivable. Major customers and accounts receivable — During the year ended March 31, 2021, the Company had two customers that accounted over 10% of revenues, and revenue from these customers amounted to RMB102.1 million and RMB44.7 million, respectively, relate to Original Equipment Manufacturer (“OEM”)/Original Design Manufacturer (“ODM”) services segment and sales of face mask. Major suppliers — During the year ended March 31, 2021, the Company had no supplier accounted over 10% of total purchases and processing fees. |
Inventories | Inventories Inventories of the Company consist of raw materials, finished goods and work in process. Inventories are stated at lower of cost or net realizable value with cost being determined on the weighted average method. Elements of cost in inventories include raw materials, direct labor costs, other direct costs, consignment manufacturing cost and manufacturing overhead. The Company assesses the valuation of inventory and periodically writes down the value for estimated excess and obsolete inventory based upon the product life-cycle. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance and repairs are charged to expenses as incurred. Depreciation of property and equipment are provided using the straight-line method over their estimated useful lives as follows: Useful life Office real estate 48 years Furniture and equipment 3 – 6 years Production and other machineries 5 – 10 years Upon retirement or sale of an asset, the cost of the asset and the related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is credited or charged to other (income) expenses, net. |
Intangible assets, net | Intangible assets, net Intangible asset results from the acquisition of the licensed software and customer relationships. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. The Company accounts for such licensed software with definite lives and amortized using the straight-line method over its estimated useful life of 3 to 10 years. |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews the carrying value of long-lived assets to be held and used when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. No impairment charge was recognized for all periods presented. |
Equity method investment | Equity method investment The Company’s long-term investments consist of equity method investment. Investment in entities in which the Company can exercise significant influence and holds an investment in voting common stock or in-substance common stock (or both) of the investee but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323 (“ASC 323”), Investments-Equity Method and Joint Ventures. Under the equity method, the Company initially records its investment at cost. The Company subsequently adjusts the carrying amount of the investments to recognize the Company’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Company evaluates the equity method investment for impairment under ASC 323. An impairment loss on the equity method investment is recognized in earnings when the decline in value is determined to be other-than-temporary. |
Fair value of financial instruments | Fair value of financial instruments Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities. Level 3 Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain unobservable assumptions and projections in determining the fair value assigned to such assets. All transfers between fair value hierarchy levels are recognized by the Company at the end of each reporting period. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risks associated with investment in those instruments. |
Fair Value Measured or Disclosed on a Recurring Basis | Fair Value Measured or Disclosed on a Recurring Basis Borrowings — Interest rates under the borrowing agreements with the lending parties were determined based on the prevailing interest rates in the market. The Company classifies the valuation techniques that use these inputs as Level 2 fair value measurement. The carrying value of the Company’s borrowings approximates fair value as the borrowing bears interest rates that are similar to existing market rates. Other financial items for disclosure purpose — The fair value of other financial items of the Company for disclosure purpose, including cash and cash equivalents, restricted cash, accounts receivable, other receivables, other current assets, accounts payable, other payables and accrued liabilities, approximate their carrying value due to their short-term nature. |
Government Grants | Government Grants Government grants are recognized in the balance sheet initially when there is reasonable assurance that they will be received and that the enterprise will comply with the conditions attached to them. When the Company received the government grants but the conditions attached to the grants have not been fulfilled, such government grants are deferred and recorded as deferred revenue. As of March 31, 2022 and 2023, the deferred revenue were RMB nil |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease, right-of-use (“ROU”) assets and lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease, ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. It uses the implicit rate when readily determinable. The operating lease, ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company have elected not to recognize ROU assets and lease liabilities for short-term leases for all classes of underlying assets. Short-term leases are leases with terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise. |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. |
Revenue recognition | Revenue recognition The Company derives revenue principally from the sale of mobile phones and accessories. Revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration the Company expects to be entitled from a customer in exchange for providing the goods or services. The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations. The Company’s revenue is primary derived from (i) OEM and ODM services for well-known brands; (2) its own in-house brands, positioned in the emerging middle class consumer groups and price-sensitive consumers in emerging markets. Refer to Note 18 to the consolidated financial statements for disaggregation of the Company’s revenue by type of product and geography information for the years ended March 31, 2021, 2022 and 2023. For the year ended March 31, 2021, the Company participated in efforts to stem the spread of the COVID-19 epidemic, namely, by serving as a temporary distributor of face masks to an existing overseas client in Brazil. The Company recognizes revenue from sales of face masks upon transfer of control of its products to the customer, which typically occurs upon delivery. The Company’s main performance obligation to its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Delivery of these products occurs at that point of time when the control of the products is transferred to the customer. All the face masks sold with delivery terms entered into on a Free On Board basis at Shenzhen port. The following table disaggregates the Company’s revenue by type of contract for the years ended March 31, 2021, 2022 and 2023: Year ended March 31, 2021 2022 2023 Category Amount Amount Amount RMB RMB RMB (in thousands) OEM/ODM 195,995 273,979 200,450 In-house brands 6,157 1,529 98 Face mask 44,747 - - Total 246,899 275,508 200,548 1) Cooperation with OEM/ODM customers Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties. The Company generates its revenue through product sales, and shipping terms generally indicate when it has fulfilled its performance obligations and passed control of products to its customer, when the goods have been shipped to the customer’s specific location (delivery). Following delivery, the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation to the goods but has no right to return the products (other than for defective products). A receivable is recognized by the Company when the goods are delivered to the customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. Revenue from OEM/ODM customers does not meet the criteria to be recognized over time since 1) it does not have the right of payment for the performance completed to date, 2) its work neither creates or enhances an asset controlled by customers until goods are delivered to the customer, 3) customers do not receive and consume benefits simultaneously provided by its performance. 2) Sales of products for in-house brands For revenue realized in Indian market, additional term of goods return may apply. Under Do Mobile’s policy, end users have a right of return for defective devices within 7 days. At the point of sale, a refund liability and a corresponding adjustment to revenue is recognized for those products expected to be returned. At the same time, Do Mobile has a right to recover the product when customers exercise their right of return so consequently recognizes a right to returned goods asset and a corresponding adjustment to cost of sales. Do Mobile uses its accumulated historical experience to estimate the number of returns on a portfolio level using the expected value method, taking into consideration the type of products. |
Contract assets and liabilities | Contract assets and liabilities Contract assets, such as costs to obtain or fulfill contracts, are an insignificant component of the Company’s revenue recognition process. The majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventories and property and equipment, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to the nature of the Company’s products and their respective manufacturing processes. Contract liabilities are mainly advance from customers. |
Warranty | Warranty The Company offers a standard product warranty that the product will operate under normal use. For products sold to OEM/ODM customers, the warranty period generally ranges from one to two years from the time of final acceptance. In general, the Company ships free spare parts as product warranty to these customers while the products are sold. For products sold to end users through retailers in India, the warranty period includes a one |
Value added tax | Value added tax In the PRC, value added tax (the “VAT”) of 17% (before May 1, 2018), 16% (from May 1, 2018 to April 1, 2019) and 13% (after April 1, 2019 until now) on invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The Company reports revenue net of VAT. VIE and its subsidiary in China that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. |
Cost of sales | Cost of sales Cost of sales consists primarily of material costs, direct labor costs, other direct costs, consignment manufacturing cost and manufacturing overhead, which are directly attributable to the production of products. Write-down of inventories to lower of cost or net realizable value is also recorded in cost of sales. |
Selling and marketing expenses | Selling and marketing expenses Selling and marketing expenses consist primarily of (i) advertising and market promotion expenses, (ii) shipping expenses and (iii) salaries and welfare for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB0.1 million, RMB0.1 million and RMB nil |
Research and development costs | Research and development costs All research and development costs, including patent application costs, are expensed as incurred. Research and development costs were total of RMB7.2 million, RMB14.1 million and RMB16.0 million for the years ended March 31, 2021, 2022 and 2023, respectively, and are included within general and administrative expenses in the consolidated statements of comprehensive loss. |
Employee social security and welfare benefits | Employee social security and welfare benefits The employees of the Company are entitled to social benefits in accordance with the relevant regulations of the countries in which these companies are incorporated. The social benefits of the employees of the Company in the PRC include medical care, welfare subsidies, unemployment insurance, employment housing fund and pension benefits. The Company’s subsidiary in India is also required to pay for employee social benefits based upon certain percentages of employees’ salaries in accordance with the relevant local regulation. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were expensed as incurred, were approximately RMB0.4 million, RMB1.1 million and RMB1.3 million for the years ended March 31, 2021, 2022 and 2023, respectively. |
Borrowing cost | Borrowing cost Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the consolidated statement of comprehensive loss in the period in which they are incurred. |
Income taxes | Income taxes Income taxes are accounted for using the asset and liability method as prescribed by ASC 740 “Income Taxes.” Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance would be provided for those deferred tax assets for which if it is more likely than not that the related benefit will not be realized. |
Uncertain tax positions | Uncertain tax positions The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The Company recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its balance sheet and under other expenses in its statement of comprehensive income. The Company did not recognize any interest and penalties associated with uncertain tax positions for the years ended March 31, 2021, 2022 and 2023. As of March 31, 2022 and 2023, the Company did not have any significant unrecognized uncertain tax positions. |
Statutory reserves | Statutory reserves Pursuant to the laws applicable to the PRC, domestic PRC entities must make appropriations from after-tax profit to non-distributable reserves funds. Subject to the limits of 50% of the entity’s registered capital, the statutory surplus reserve fund requires annual appropriations of 10% of after-tax profit (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). These reserve funds can only be used for specific purposes and are not distributable as cash dividends. Appropriation has been made to these statutory reserve funds of RMB0.2 million, RMB nil nil |
Non-controlling interest | Non-controlling interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated balance sheets and net loss and other comprehensive loss are attributed to controlling and non-controlling interests. |
Foreign currency translation and transactions | Foreign currency translation and transactions The reporting currency of the Company is the RMB. The Company’s subsidiaries, consolidated VIE and VIE’s subsidiaries with operations in the PRC, Hong Kong, and other jurisdictions generally use their respective local currencies as their functional currencies, except that UTime Trading uses United States dollar (“US$”) as functional currency. The financial statements of the Company’s subsidiaries, other than the consolidated VIE and VIE’s subsidiary with the functional currency in RMB, are translated into RMB using the exchange rate as of the balance sheet date for assets and liabilities, historical exchange rate for equity amounts and the average rate during the reporting period for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. In the financial statements of the Company’s subsidiaries and consolidated VIE and VIE’s subsidiary, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in other (income) expenses, net in the consolidated statements of comprehensive loss. |
Convenience translation | Convenience translation Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss and consolidated statements of cash flows from RMB into USD as of and for the year ended March 31, 2023 are solely for the convenience of the reader and has been made at the exchange rate quoted by the central parity of RMB against the USD by the People’s Bank of China on March 31, 2023 of USD1.00 = RMB6.8717. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on March 31, 2023, or at any other rate. |
Comprehensive income (loss) | Comprehensive loss Comprehensive loss is comprised of the Company’s net loss and comprehensive loss. The component of comprehensive loss is consisted solely of foreign currency translation adjustments. |
Related parties | Related parties 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 operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Segment reporting | Segment reporting FASB ASC Topic 280, “Segment Reporting” establishes standards for reporting information about reportable segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. Management views the business as consisting of revenue streams; however, they do not produce reports for, assess the performance of, or allocate resources to these revenue streams based upon any asset-based metrics, or based upon income or expenses, operating income or net income. Therefore, the Company believes that it operates in one business segment. Substantively all of the Company’s long-lived assets are located in the PRC. |
Loss per share | Loss per share Basic net loss per share is the amount of net loss available to each share of ordinary shares outstanding during the reporting period. Diluted net loss per share is the amount of net loss available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares, if any. Basic and diluted loss per share for each of the periods presented are calculated as follows: Year ended March 31, 2021 2022 2023 RMB RMB RMB Numerator: Net loss attributable to UTime Limited, basic and diluted (16,627 ) (38,833 ) (87,616 ) Denominator: Weighted average shares outstanding, basic and diluted 4,517,793 8,164,771 11,229,985 Net loss attributable to UTime Limited per ordinary share: Basic and diluted (3.68 ) (4.76 ) (7.80 ) |
Acquisitions | Acquisitions The Company accounts for acquisitions of an asset or group of similar identifiable assets that do not meet the definition of a business as an asset acquisition using the cost accumulated method, whereby the cost of the acquisition, including certain transaction costs, is allocated to the assets acquired on the basis of their relative fair values. No goodwill is recognized in an asset acquisition. Intangible assets acquired in an asset acquisition for use in research and development activities which have no alternative future use are expensed as in-process research and development on the acquisition date. Intangible assets acquired for use in research and development activities which have an alternative future use are capitalized as in-process research and development. Future costs to develop these assets are recorded to research and development expense as they are incurred. |
Recently issued accounting standards | Recently issued accounting standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaced the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 requires use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. In October 2019, the FASB issued ASU No. 2019-10, “Financial Instruments-Credit Losses (Topic 326): Effective Dates”, to finalize the effective date delays for private companies, not-for-profits, and smaller reporting companies applying the current expected credit loss (CECL) standards. In March 31, 2023, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the TDR accounting model for creditors that have already adopted Topic 326, which is commonly referred to as the CECL model. These ASUs are effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Company has not early adopted this update and it will become effective on April 1, 2023 assuming the Company will remain an emerging growth company. The Company is currently assessing the impact of adopting this standard on its consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on the consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of subsidiaries and VIE | As of March 31, 2023, details of the subsidiaries and VIE of the Company are set out below: Name Date of Place of Percentage of Principal Subsidiaries UTime HK November 1, 2018 Hong Kong 100% Investment Holding UTime WFOE December 18, 2018 China 100% Investment Holding Bridgetime September 5, 2016 British Virgin Island 100% Investment Holding Do Mobile October 24, 2016 India 99.99% Sales of in-house brand products in India Name Date of Place of Percentage of Principal VIE UTime SZ June 12, 2008 China 100% Research and development of products, and sales Subsidiaries of the VIE Guizhou United Time Technology Co., Ltd. (“UTime GZ”) September 23, 2016 China VIE’s subsidiary Manufacturing UTime Technology (HK) Company Limited (“UTime Trading”) June 25, 2015 Hong Kong VIE’s subsidiary Trading UTime India Private Limited (“UTime India”) February 7, 2019 India UTime Trading’s subsidiary Trading Guangxi UTime Technology Co., Ltd. (“UTime Guangxi”) November 1, 2021 China UTime Trading’s subsidiary Manufacturing Gesoper S De R.L. De C.V. (“Gesoper”) October 21, 2020 Mexico UTime Trading’s subsidiary Trading Firts Communications And Technologies De Mexico S.A. De C.V. (“Firts”) November 12, 2021 Mexico Gesoper’s subsidiary Trading |
Schedule of balance sheet | Company’s consolidated balance sheets as of March 31, 2022 and 2023 are as follows: As of March 31, 2022 2023 RMB RMB Assets Current assets Cash and cash equivalents 192 277 Restricted cash 500 500 Accounts receivable, net 22,391 52,241 Prepaid expenses and other current assets, net 42,431 70,202 Due from related parties 1,422 584 Inventories 36,018 16,169 Total current assets 102,954 139,973 Non-current assets Property and equipment, net 38,227 61,411 Operating lease right-of-use assets, net 16,319 13,030 Equity method investment - - Intangible assets, net 2,592 1,677 Other non-current assets 541 - Total non-current assets 57,679 76,118 Total assets 160,633 216,091 Liabilities Current liabilities Accounts payable 74,497 126,683 Short-term borrowings 35,780 53,935 Current portion of long-term borrowings 800 1,080 Due to related parties 3,728 4,705 Lease liabilities 3,360 3,673 Other payables and accrued liabilities 42,423 48,941 Income tax payables 18 18 Total current liabilities 160,606 239,035 Non-current liabilities Long-term borrowings 8,020 6,870 Government grants - 8,697 Deferred tax liabilities 466 295 Lease liabilities 14,549 10,876 Total non-current liabilities 23,035 26,738 Total liabilities 183,639 265,773 |
Schedule of revenue net income and cash flows of VIE and subsidiaries | The table sets forth the revenue, net loss and cash flows of the VIE and subsidiaries of VIE in the table below. Year ended March 31, 2021 2022 2023 RMB RMB RMB Revenue 240,742 273,979 200,450 Net loss (10,722 ) (29,643 ) (19,221 ) Net cash used in operating activities (3,020 ) (19,806 ) (15,269 ) Net cash used in investing activities (2,201 ) (5,830 ) (2,900 ) Net cash provided by financing activities 14,000 17,629 18,295 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of property and straight-line method over their estimated useful lives | Depreciation of property and equipment are provided using the straight-line method over their estimated useful lives as follows: Useful life Office real estate 48 years Furniture and equipment 3 – 6 years Production and other machineries 5 – 10 years |
Schedule of disaggregates revenue | Year ended March 31, 2021 2022 2023 Category Amount Amount Amount RMB RMB RMB (in thousands) OEM/ODM 195,995 273,979 200,450 In-house brands 6,157 1,529 98 Face mask 44,747 - - Total 246,899 275,508 200,548 |
Schedule of basic net loss per share | Basic and diluted loss per share for each of the periods presented are calculated as follows: Year ended March 31, 2021 2022 2023 RMB RMB RMB Numerator: Net loss attributable to UTime Limited, basic and diluted (16,627 ) (38,833 ) (87,616 ) Denominator: Weighted average shares outstanding, basic and diluted 4,517,793 8,164,771 11,229,985 Net loss attributable to UTime Limited per ordinary share: Basic and diluted (3.68 ) (4.76 ) (7.80 ) |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of accounts receivable, net | As of March 31, 2022 2023 RMB RMB Accounts receivable 22,543 52,444 Allowance for doubtful accounts (126 ) (136 ) Accounts receivable, net 22,417 52,308 |
Schedule of movement of allowance for doubtful accounts | 2021 2022 2023 RMB RMB RMB Balance at beginning of year 838 878 126 Additions for the year 50 — — Written off for the year — (748 ) — Foreign currency translation difference (10 ) (4 ) 10 Balance at the end of year 878 126 136 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses and Other Current Assets, Net [Abstract] | |
Schedule of prepaid expenses and other current assets, net | As of March 31, 2022 2023 RMB RMB Advance to suppliers 40,620 64,827 Input GST/IVA 568 412 Receivables from supply chain service provider 4,829 7,648 Expected return assets 1 1 Other receivables 21,460 24,282 Allowance for doubtful accounts (1,663 ) (1,662 ) Prepaid expenses and other current assets, net 65,815 95,508 |
Schedule of other current assets | As of March 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of year 4,006 674 1,663 Additions (reversal) for the year (886 ) 3,406 — Written off for the year (2,446 ) (2,359 ) — Foreign currency translation difference — (58 ) (1 ) Balance at the end of year 674 1,663 1,662 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | As of March 31, 2022 2023 RMB RMB Raw materials 32,004 12,294 Work in progress 1,326 2,972 Finished goods 13,533 11,217 Total inventory, gross 46,863 26,483 Inventory reserve (10,792 ) (10,314 ) Total inventory, net 36,071 16,169 |
Schedule of inventory reserve | As a result of such analysis, the movement of inventory reserve was as follows: Year ended March 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of year 5,962 13,393 10,792 Additional charge (written off), net 7,589 (2,467 ) 407 Foreign currency translation difference (158 ) (134 ) (885 ) Balance at the end of year 13,393 10,792 10,314 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | As of March 31, 2022 2023 RMB RMB Office real estate 20,995 20,996 Furniture and equipment 5,100 6,267 Production and other machineries 29,713 55,015 Total 55,808 82,278 Less: accumulated depreciation 17,538 20,849 Property and equipment, net 38,270 61,429 |
Schedule of production and other machineries lease out under operating lease | As of March 31, 2022 2023 RMB RMB Cost 29,578 29,578 Less: accumulated depreciation and amortization 9,436 12,094 Net book value 20,142 17,484 |
Lease Liabilities (Tables)
Lease Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Lease Liabilities [Abstract] | |
Schedule of future minimum rental payments for operating leases | Year ending March 31, RMB 2024 804 2025 201 Total 1,005 |
Schedule of lease expense | Year ended March 31, 2021 2022 2023 RMB RMB RMB Operating lease cost 1,016 2,265 3,289 Short-term lease cost 1,163 973 — Lease cost 2,179 3,238 3,289 |
Schedule of cash flow supplemental disclosures | Year ended March 31, 2021 2022 2023 RMB RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases 1,325 1,249 4,514 |
Schedule of lease liabilities | RMB USD 2024 4,575 666 2025 4,575 666 2026 and after 7,356 1,071 Total lease payments 16,506 2,403 Less: Interest (1,957 ) (285 ) Present value of lease liabilities 14,549 2,118 Less current portion, record in current liabilities (3,673 ) (535 ) Present value of lease liabilities 10,876 1,583 |
Schedule of weighted average remaining lease terms and discount rates for all operating leases | As of As of 2022 2023 Remaining lease term and discount rate: RMB RMB Weighted average remaining lease term (years) 4.56 3.61 Weighted average discount rate 7.03 % 7.00 % |
Equity Method Investment (Table
Equity Method Investment (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | Year ended March 31, 2022 2023 RMB RMB Cost 1,425 1,425 Less: accumulated impairment (1,425 ) (1,425 ) Equity method investment, net - - |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Other Non-Current Assets [Abstract] | |
Schedule of other non-current assets | As of March 31, 2022 2023 RMB RMB Prepayment for property and equipment, and intangible asset 541 - Total other non-current assets 541 - |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of short term and long term borrowings | As of March 31, Note 2022 2023 RMB RMB Short-term borrowings China Resources Bank of Zhuhai Co., Ltd. Loan 1 (a) 22,000 - Secured loan (b) 4,980 7,800 Bank of Communications (c) 2,500 - Baosheng County Bank 1 (d) 2,300 - China Resources Bank of Zhuhai Co., Ltd. Loan 2 (e) 2,000 - PingAn Bank Co., Ltd. (f) 2,000 2,000 China Resources Bank of Zhuhai Co., Ltd. Loan 3 (g) - 22,000 China Resources Bank of Zhuhai Co., Ltd. Loan 4 (h) - 2,000 Baosheng County Bank 2 (i) - 2,400 WeBank Co., Ltd. 1 (j) - 1,990 WeBank Co., Ltd. 2 (k) - 1,000 WeBank Co., Ltd. 3 (l) - 1,745 China Resources SZITIC Trust Company Limited (m) - 3,000 Industrial and Commercial Bank of China (“ICBC”) Loan (n) - 5,000 Industrial and Commercial Bank of China (“ICBC”) Loan (o) 5,000 35,780 53,935 Long-term borrowings Shenzhen Rural Commercial Bank loan 1 (p) 7,000 6,370 Shenzhen Rural Commercial Bank loan 2 (q) 1,820 1,580 8,820 7,950 Representing by: Current portion of long-term borrowings 800 1,080 Non-current portion of long-term borrowings 8,020 6,870 (a) On November 13, 2020, UTime SZ entered into a credit agreement with China Resources Bank of Zhuhai Co., Ltd., according to which China Resources Bank of Zhuhai Co., Ltd. agreed to provide UTime SZ with a credit facility of up to RMB22 million with a two-year term from November 13, 2020 to November 13, 2022. On November 18, 2020, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd. to borrow RMB22 million as working capital for one year at an annual effective interest rate of 5.5%. The Company repaid the loan on November 18, 2021 and borrowed RMB22 million as working capital for one year at an annual effective interest rate of 5.5% on November 22, 2021. The Company repaid the loan on November 21, 2022. The loan is secured by the office owned by UTime SZ and guaranteed by UTime GZ, Mr. Bao and his spouse. (b) In November 2020, UTime SZ and TCL Commercial Factoring (Shenzhen) Company Limited (“TCL Factoring”) executed a factoring agreement, pursuant to which UTime SZ received a revolving credit facility and may submit unlimited number of loan applications, so long as, among other conditions, the balance of the loan does not exceed the credit line. The annual effective interest rate range is from 8.0% to 9.0%. TCL Factoring has the right of recourse to UTime SZ, and as a result, these transactions were recognized as secured borrowings. UTime SZ agreed to pledge to TCL Factoring its accounts receivable from TCL Mobile Communication Company Limited (“TCL Huizhou”). This credit facility was also guaranteed respectively by Mr. Bao and UTime GZ, each for an amount up to RMB20 million. UTime SZ agreed not to withdraw, utilize or dispose the accounts receivables paid to it by TCL Huizhou without the prior consent of TCL Factoring. As of March 31, 2022 and 2023, UTime SZ obtained loans under the factoring agreement at the total amount of RMB4.98 million and RMB7.8 million, respectively. (c) In July 2021, UTime SZ entered into a credit agreement with Bank of Communications to borrow RMB10 million for an unfixed term. On July 19, 2021, UTime SZ obtained a loan under this working capital loan agreement at the amount of RMB3 million which is due on July 6, 2022. The loan was guaranteed by Mr. Bao and his spouse. The loan bears a fixed interest rate of 4.6% per annum and will be due on July 6, 2022. The loan was fully repaid in July 2022. (d) In August 2021, UTime SZ entered into a credit line agreement with Shenzhen Nanshan Baosheng County Bank Co., Ltd. (“Baosheng County Bank”) according to which Baosheng County Bank agreed to provide UTime SZ with a credit facility of up to RMB3 million with a one-year term from July 28, 2021 to July 28, 2022. On August 23, 2021, UTime SZ entered into a working capital loan agreement with Baosheng County Bank to borrow RMB3 million as working capital for one year at an annual effective interest rate of 8.0%. It is payable at monthly installment of RMB0.1 million from September 2021 to August 2022, with a balloon payment of the remaining balance in the last installment. The loan was fully repaid in August 2022. (e) On December 2, 2021, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd., to borrow RMB2 million as working capital at an annual effective interest rate of 8.0%. The loan was repaid in October 2022. (f) In November 2021, UTime SZ entered into a credit agreement with PingAn Bank Co., Ltd. to borrow RMB2 million for a term of 3 years, with an annual effective rate of 12.96%. The loan is guaranteed by Mr. Bao and his spouse. As of March 31, 2023 UTime SZ obtained loans under the credit agreement at the total amount of RMB2 million which will be due on November 2023. (g) On November 24, 2022, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd., to borrow RMB22 million as working capital at an annual effective interest rate of 5.5%. The loan is secured by the office owned by UTime SZ and guaranteed by UTime GZ, Mr. Bao and his spouse. The loan will be due in November 2023. (h) On December 5, 2022, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd., to borrow RMB2 million as working capital at an annual effective interest rate of 8.0%. The loan will be due on October 25, 2023. (i) On August 31, 2022, UTime SZ entered into a credit line agreement with Shenzhen Nanshan Baosheng County Bank Co., Ltd. (“Baosheng County Bank”) according to which Baosheng County Bank agreed to provide UTime SZ with a credit facility of up to RMB3 million with a one-year term from August 31, 2022 to August 31, 2023. On August 31, 2022, UTime SZ entered into a working capital loan agreement with Baosheng County Bank to borrow RMB3 million as working capital for one year at an annual effective interest rate of 8.0%. It is payable at monthly installment of RMB0.1 million from September 2021 to August 2022, with a balloon payment of the remaining balance in the last installment. The loan is secured by the office owned by UTime SZ and guaranteed by UTime Guangxi, Mr. Bao and his spouse. (j) On May 19, 2022, UTime SZ entered into a credit line agreement with WeBank Co., Ltd. (“WeBank”) according to which WeBank agreed to provide UTime SZ with a credit facility of up to RMB1.99 million with a two-year term from May 19, 2022 to May 19, 2024, with an annual effective interest rate of 9.45%. The loan is guaranteed by Mr. Bao. As of March 31, 2023 UTime SZ loans under the credit agreement was RMB1.99 million. (k) On May 19, 2022, UTime SZ entered into a credit line agreement with WeBank Co., Ltd. (“WeBank”) according to which WeBank agreed to provide UTime SZ with a credit facility of up to RMB1 million with a two-year term from May 19, 2022 to May 19, 2024, with an annual effective interest rate of 9%. The loan is guaranteed by Mr. Bao. As of March 31, 2023 UTime SZ loans under the credit agreement was RMB1 million. (l) On May 18, 2022, UTime SZ entered into a credit line agreement with WeBank Co., Ltd. (“WeBank”) according to which WeBank agreed to provide UTime SZ with a credit facility of up to RMB3 million with a two-year term from May 18, 2022 to May 18, 2024, with an annual effective interest rate of 11.34%. The loan is guaranteed by Mr. Bao. As of March 31, 2023 UTime SZ loans under the credit agreement was RMB1.7 million. (m) On January 10, 2023, UTime SZ entered into a working capital loan agreement with China CITIC Bank, to borrow RMB3 million as working capital at an annual effective interest rate of 4.35%. The loan will be due in January 2024. (n) On December 2, 2022, UTime SZ entered into a loan agreement with Industrial and Commercial Bank of China (“ICBC”), to borrow RMB 5 million as working capital at an annual effective interest rate of 3.75%. The loan will be due in 12 months. (o) On December 7, 2022, UTime SZ entered into a loan agreement with Industrial and Commercial Bank of China (“ICBC”), to borrow RMB 5 million as working capital at an annual effective interest rate of 3.75%. The loan will be due in 12 months. (p) On June 29, 2021, UTime SZ entered into a credit agreement with Shenzhen Rural Commercial Bank to borrow RMB7 million for a term of 3 years, which is payable at monthly installment of RMB0.07 million from August 2022 to July 2024, with a balloon payment of the remaining balance in the last installment. The loan bears a fixed interest rate of 4.5% per annum. The loan was secured by real estate owned by Mr. Bao and guaranteed by Mr. Bao. As of March 31, 2022 and 2023, the balance of the loan was RMB7 million and RMB6.4 million, respectively. Out of the total outstanding loan balance, current portion amounted were RMB0.56 million and RMB0.84 million, which is presented as current liabilities in the consolidated balance sheet and the remaining balance of RMB6.44 million and RMB5.53 million, which is presented as non-current liabilities in the consolidated balance sheet as of March 31, 2022 and 2023, respectively. (q) In July 2021, UTime SZ entered into a credit agreement with Shenzhen Rural Commercial Bank to borrow RMB2 million for a term of 3 years, which is payable at monthly installment of RMB0.02 million from July 2021 to July 2024, with a balloon payment of the remaining balance in the last installment. The loan is secured by real estate owned by Mr. Bao and guaranteed by Mr. Bao. As of March 31, 2022 and 2023, the balance of the loan are RMB1.82 million and RMB1.58 million, respectively. Out of the total outstanding loan balance, current portion amounted were RMB0.24 million and RMB0.24 million, which is presented as current liabilities in the consolidated balance sheet and the remaining balance of RMB1.82 million and RMB1.58 million, which is presented as non-current liabilities in the consolidated balance sheet as of March 31, 2022 and 2023, respectively. |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of other payables and accrued liabilities | As of March 31, 2022 2023 RMB RMB Advance from customers 16,607 17,087 Accrued payroll 10,220 11,910 VAT payable 1,484 7,292 Refund liabilities 1 1 Product warranty 50 50 Other payables 15,786 18,432 Total 44,148 54,772 |
Other Expenses_(Income), Net (T
Other Expenses/(Income), Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Other (Income) Expenses, Net [Abstract] | |
Schedule of other expenses/(income), net | Year ended March 31, 2021 2022 2023 RMB RMB RMB Exchange losses (gains) 3,703 2,316 (3,179 ) Provision for doubtful accounts, net (836 ) 3,406 - Impairment of intangible asset - 348 - Government grants (1,289 ) (2,851 ) (594 ) Loss on equity method investment 833 Others 464 109 79 Total 2,875 3,328 (3,694 ) |
Income Tax Benefits (Tables)
Income Tax Benefits (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Benefits [Abstract] | |
Schedule of deferred components of income taxes | Year ended March 31, 2021 2022 2023 RMB RMB RMB Current tax benefits 364 - - Deferred tax benefit - 46 171 Total income tax benefit 364 46 171 |
Schedule of deferred tax assets and liabilities | As of March 31, 2022 2023 RMB RMB Deferred income tax assets (liabilities) : Impairment on receivables 2,590 450 Inventories 3,358 1,889 Deferred revenue 977 2,174 Accrued expenses and employee benefits 1,411 3,258 Equity method investment and others 1,075 - Net operating loss carry forwards 21,678 27,977 Total gross deferred tax assets 31,089 35,748 Less: valuation allowances (27,747 ) (32,490) Total deferred tax assets, net of valuation allowance 3,342 3,258 Prepaid expenses and other current assets (1,299 ) (3,258 ) Unrealized foreign exchange difference and others (2,217 ) - Amortization & impairment of intangible asset (292 ) (295 ) Deferred tax liabilities (466 ) (295 ) |
Schedule of income tax benefits | Year ended March 31, 2021 2022 2023 % % % Statutory rate in PRC 25 25 25 Effect of preferential tax treatment (2 ) (4 ) (1 ) Effect of different tax jurisdiction (6 ) (4 ) (19 ) Effect of permanence differences (1 ) (2 ) - Research and development super-deduction 5 4 2 Changes in valuation allowance (21 ) (19 ) (7 ) Over provision in prior year 2 - - Total income tax benefits 2 - - |
Related Parties Balances and _2
Related Parties Balances and Transactions (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of related parties transactions | Related Parties Relationship Mr. Bao Controlling shareholder of the Company Mr. He Beneficial shareholder of the Company Mr. Yu Chief Financial Officer of the Company Philectronics An equity method investee of the Company Grandsky Phoenix Limited 100% owned by Mr. Bao |
Schedule of due from related parties | As of March 31, 2022 2023 RMB RMB Philectronics 486 536 Mr. Bao 47 - GRANDSKY PHOENIX LIMITED 889 - Mr. Yu - 48 1,422 584 (2) Due to related parties |
Schedule of due to related parties | As of March 31, 2022 2023 RMB RMB Mr. Bao 3,819 4,779 Philectronics 482 482 GRANDSKY PHOENIX LIMITED 198 239 4,499 5,500 (1) On September 17, 2021, Mr. Bao entered into a loan agreement with China Resources Bank of Zhuhai Co., Ltd. and borrowed RMB3.0 million (US$0.5 million). The loan is restricted on purpose only to support daily operation for the Companies that is controlled by Mr. Bao. The loan was repaid on March 17, 2022 and the agreement was renewed on March 18, 2022. |
Revenue and Geography Informa_2
Revenue and Geography Information (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of revenue and geography information | Year ended March 31, 2021 2022 2023 RMB RMB RMB Feature phone 144,032 111,066 106,279 Smart phone 56,885 154,143 73,819 Face mask 44,747 - - Others 1,235 10,299 20,449 Total 246,899 275,508 200,547 |
Schedule of company’s sales breakdown based on location | Year ended March 31, 2021 2022 2023 RMB RMB RMB Mainland China 112,400 70,314 82,481 Hong Kong 30,030 18,949 14,228 India 6,157 1,529 97 Africa 19,536 25,905 39,515 The United States 17,277 28,154 18,158 Mexico - 12,372 29,085 South America 45,743 118,285 951 Others 15,756 - 16,032 Total 246,899 275,508 200,547 |
Schedule of location of company’s long-lived assets | As of March 31, 2022 2023 RMB RMB PRC 54,543 74,438 India 46 19 Mexico - 3 Total 54,589 74,460 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Condensed Financial Information of the Parent Company [Abstract] | |
Schedule of balance sheet | As of March 31, 2022 2023 RMB RMB ASSETS Current assets Cash and cash equivalents 1 2 Prepaid expenses and other current assets 23,195 25,109 Inter-company receivable 73,345 79,393 Non-current assets Investment in subsidiary 1,610 (18,929 ) Total assets 98,151 85,575 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Inter-company payable 31,492 35,634 Due to related parties 289 313 Other payables and accrued liabilities 1,382 5,539 Total liabilities 33,163 41,486 Shareholders’ equity Preference share, par value US$0.0001; Authorized:10,000,000 shares; Nil issued and outstanding as of March 31, 2022 and March 31, 2023, respectively - - Ordinary shares, par value US$0.0001; Authorized:140,000,000 shares; Issued and outstanding: 8,267,793 shares as of March 31, 2022 and 13,567,793 shares as of March 31, 2023 5 9 Additional paid-in capital 152,236 216,504 Accumulated deficit (88,277 ) (175,893 ) Accumulated other comprehensive income 1,024 3,469 Total shareholder’s equity 64,988 44,089 Total liabilities and shareholders’ equity 98,151 85,575 |
Schedule of comprehensive loss | Year ended March 31, 2021 2022 2023 RMB RMB RMB Loss from equity method investments (12,618 ) (32,350 ) (18,396 ) Operating expenses (4,009 ) (6,483 ) (69,220 ) Net loss (16,627 ) (38,833 ) (87,616 ) Foreign currency translation difference 1,868 (377 ) 2,445 Comprehensive loss (14,759 ) (39,210 ) (85,171 ) |
Schedule of cash flows | Year ended March 31, 2021 2022 2023 RMB RMB RMB CASH FLOW FROM OPERATING ACTIVTIES Net loss (16,627 ) (38,833 ) (87,616 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Equity loss of subsidiaries 12,618 32,350 18,396 Share-based compensation and expenses - - 63,656 Changes in operating assets and liabilities: Prepaid expenses and other current assets (8,424 ) (1,173 ) - Inter-company payable (i) 12,206 8,000 1,539 Related parties (23 ) - - Other payables and accrued liabilities 131 1,269 4,026 Net cash (used in) provided by operating activities (119 ) 1,613 1 Effect of exchange rate changes on cash and cash equivalent and restricted cash 125 (1,618 ) - Net change in cash and cash equivalent 6 (5 ) 1 Cash and cash equivalents, beginning of year - 6 1 Cash and cash equivalents, end of year 6 1 2 (i) For the year ended March 31, 2022, UTime HK received the IPO proceeds of RMB88.2 million and made down payment for financing services of RMB19 million on behalf of UTime Limited. |
Organization and Principal Ac_3
Organization and Principal Activities (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Apr. 08, 2021 CNY (¥) shares | Apr. 08, 2021 USD ($) $ / shares shares | Apr. 04, 2019 shares | Mar. 11, 2019 shares | Apr. 29, 2021 | Feb. 28, 2018 USD ($) | Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Mar. 31, 2023 USD ($) shares | Jan. 17, 2022 | Dec. 17, 2021 | Mar. 31, 2021 shares | Apr. 29, 2020 shares | Sep. 04, 2019 | Jun. 03, 2019 USD ($) $ / shares shares | May 20, 2019 shares | Mar. 05, 2018 shares | Mar. 31, 2017 | Sep. 05, 2016 | |
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Total consideration (in Dollars) | $ | $ 9,600,000 | ||||||||||||||||||
Non-controlling interest (in Yuan Renminbi) | ¥ | ¥ 17,200 | ||||||||||||||||||
Other comprehensive income (in Yuan Renminbi) | ¥ | 1,000 | ||||||||||||||||||
Additional paid in capital (in Yuan Renminbi) | ¥ | 16,200 | ||||||||||||||||||
Shares issued (in Shares) | 100,000 | ||||||||||||||||||
Share transfer (in Shares) | 1 | ||||||||||||||||||
Business operations description | On April 4, 2019, Bridgetime approved a board resolution that forfeited 15,000 shares held by Mr. Yunchuan Li, cancelled those shares accordingly and amended Bridgetime’s memorandum of association that changed authorized shares from 150,000 to 135,000 at a par value of US$1.00 which was accounted as a cancellation of non-controlling interest in the consolidated statements of shareholders’ equity.After this, Mr. WuKai Song owned 100% of equity interest of Bridgetime, which are controlled by Mr. Bao through an entrust agreement between Mr. Bao and Mr. Wukai Song. On May 23, 2019, Bridgetime approved a board resolution that transferred 135,000 ordinary shares owning by Mr. Wukai Song to UTime Limited. Since inception, Bridgetime has only made nominal investments into Do Mobile and no substantial business operations have occurred. | ||||||||||||||||||
Share forfeitures (in Shares) | 15,000 | ||||||||||||||||||
Ordinary shares (in Dollars) | ¥ 9 | ¥ 5 | $ 1,000 | ||||||||||||||||
Ordinary shares, shares issued (in Shares) | 13,567,793 | 8,267,793 | 13,567,793 | 4,517,793 | |||||||||||||||
Ordinary shares, par value (in Dollars per share) | ¥ / shares | ¥ 0.0001 | ¥ 0.0001 | |||||||||||||||||
Repurchase of shares (in Shares) | 7,620,000 | ||||||||||||||||||
Ordinary shares (in Shares) | 239,721 | ||||||||||||||||||
Ordinary shares repurchased description | Before and after the repurchase of ordinary shares, Mr. Bao, through Grandsky Phoenix Limited, and Mr. He, through HMercury Capital Limited, own 96.95% and 3.05% of our issued and outstanding ordinary shares, respectively. The Company considers this repurchase of ordinary shares was part of the Company’s recapitalization to result in 4,517,793 ordinary shares issued and outstanding prior to completion of its IPO. The Company believes it is appropriate to reflect these nominal share repurchases to result in 4,517,793 ordinary shares being issued and outstanding or reduction of 63.5% of total ordinary shares being issued and outstanding after the repurchase of ordinary shares similar to 0.365-for-1 reverse stock split. | ||||||||||||||||||
Service fee | 100% | ||||||||||||||||||
Equity interests percentage | 25% | 25% | 100% | ||||||||||||||||
Gross proceeds (in Dollars) | $ | $ 15,000,000 | ||||||||||||||||||
Equity interest rate | 85% | 51% | |||||||||||||||||
IPO [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Ordinary share (in Shares) | 3,750,000 | 3,750,000 | |||||||||||||||||
Price per share (in Dollars per share) | $ / shares | $ 4 | ||||||||||||||||||
Gross proceeds (in Dollars) | $ | $ 15,000,000 | ||||||||||||||||||
Net proceeds | ¥ 88,200 | $ 13,900,000 | |||||||||||||||||
Mr. Bao [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 28% | 96.95% | 96.95% | 100% | 52% | ||||||||||||||
Shares issued (in Shares) | 12,000,000 | ||||||||||||||||||
Mr Zhou [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 20% | 28% | |||||||||||||||||
Mr Tang [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 20% | ||||||||||||||||||
Mr. Wukai Song [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 90% | 70% | |||||||||||||||||
Mr. Yunchuan Li [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 10% | 30% | |||||||||||||||||
Grandsky Phoenix Limited [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 96.95% | ||||||||||||||||||
Mr. He. HMercury Capital Limited [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 3.05% | ||||||||||||||||||
Mr. He [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Equity interest percentage | 3.05% | 3.05% | |||||||||||||||||
Mr. He. HMercury Capital Limited [Member] | |||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||||||||||
Ordinary shares (in Dollars) | $ | $ 377,514 | ||||||||||||||||||
Ordinary shares, shares issued (in Shares) | 377,514 | ||||||||||||||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.0001 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of subsidiaries and VIE | 12 Months Ended |
Mar. 31, 2023 | |
UTime HK [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Nov. 01, 2018 |
Place of Incorporation | Hong Kong |
Percentage of Beneficial Ownership | 100% |
Principal Activities | Investment Holding |
UTime WFOE [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Dec. 18, 2018 |
Place of Incorporation | China |
Percentage of Beneficial Ownership | 100% |
Principal Activities | Investment Holding |
Bridgetime [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Sep. 05, 2016 |
Place of Incorporation | British Virgin Island |
Percentage of Beneficial Ownership | 100% |
Principal Activities | Investment Holding |
Do Mobile [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Oct. 24, 2016 |
Place of Incorporation | India |
Percentage of Beneficial Ownership | 99.99% |
Principal Activities | Sales of in-house brand products in India |
UTime SZ [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Jun. 12, 2008 |
Place of Incorporation | China |
Percentage of Beneficial Ownership | 100% |
Principal Activities | Research and development of products, and sales |
Guizhou United Time Technology Co., Ltd. (“UTime GZ”) [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Sep. 23, 2016 |
Place of Incorporation | China |
Percentage of Beneficial Ownership | VIE’s subsidiary |
Principal Activities | Manufacturing |
UTime Technology (HK) Company Limited (“UTime Trading”) [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Jun. 25, 2015 |
Place of Incorporation | Hong Kong |
Percentage of Beneficial Ownership | VIE’s subsidiary |
Principal Activities | Trading |
UTime India Private Limited (“UTime India”) [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Feb. 07, 2019 |
Place of Incorporation | India |
Percentage of Beneficial Ownership | UTime Trading’s subsidiary |
Principal Activities | Trading |
Guangxi UTime Technology Co., Ltd. (“UTime Guangxi”) [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Nov. 01, 2021 |
Place of Incorporation | China |
Percentage of Beneficial Ownership | UTime Trading’s subsidiary |
Principal Activities | Manufacturing |
Gesoper S De R.L. De C.V. (“Gesoper”) [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Oct. 21, 2020 |
Place of Incorporation | Mexico |
Percentage of Beneficial Ownership | UTime Trading’s subsidiary |
Principal Activities | Trading |
Firts Communications And Technologies De Mexico S.A. De C.V. (“Firts”) [Member] | |
Variable Interest Entity [Line Items] | |
Date of Incorporation | Nov. 12, 2021 |
Place of Incorporation | Mexico |
Percentage of Beneficial Ownership | Gesoper’s subsidiary |
Principal Activities | Trading |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of balance sheet - VIE [Member] - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Assets | ||
Cash and cash equivalents | ¥ 277 | ¥ 192 |
Restricted cash | 500 | 500 |
Accounts receivable, net | 52,241 | 22,391 |
Prepaid expenses and other current assets, net | 70,202 | 42,431 |
Due from related parties | 584 | 1,422 |
Inventories | 16,169 | 36,018 |
Total current assets | 139,973 | 102,954 |
Non-current assets | ||
Property and equipment, net | 61,411 | 38,227 |
Operating lease right-of-use assets, net | 13,030 | 16,319 |
Equity method investment | ||
Intangible assets, net | 1,677 | 2,592 |
Other non-current assets | 541 | |
Total non-current assets | 76,118 | 57,679 |
Total assets | 216,091 | 160,633 |
Current liabilities | ||
Accounts payable | 126,683 | 74,497 |
Short-term borrowings | 53,935 | 35,780 |
Current portion of long-term borrowings | 1,080 | 800 |
Due to related parties | 4,705 | 3,728 |
Lease liabilities | 3,673 | 3,360 |
Other payables and accrued liabilities | 48,941 | 42,423 |
Income tax payables | 18 | 18 |
Total current liabilities | 239,035 | 160,606 |
Non-current liabilities | ||
Long-term borrowings | 6,870 | 8,020 |
Government grants | 8,697 | |
Deferred tax liabilities | 295 | 466 |
Lease liabilities | 10,876 | 14,549 |
Total non-current liabilities | 26,738 | 23,035 |
Total liabilities | ¥ 265,773 | ¥ 183,639 |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of revenue net income and cash flows of VIE and subsidiaries - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Revenue Net Income and Cash Flows of Vie and Subsidiaries [Abstract] | |||
Revenue | ¥ 200,450 | ¥ 273,979 | ¥ 240,742 |
Net loss | (19,221) | (29,643) | (10,722) |
Net cash used in operating activities | (15,269) | (19,806) | (3,020) |
Net cash used in investing activities | (2,900) | (5,830) | (2,201) |
Net cash provided by financing activities | ¥ 18,295 | ¥ 17,629 | ¥ 14,000 |
Going Concern (Details)
Going Concern (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Going Concern (Details) [Line Items] | ||||||
Current assets | ¥ 237,000 | ¥ 192,900 | $ 34,500 | |||
Current liabilities | 245,700 | 163,100 | 35,800 | |||
Working capital deficit | 8,700 | 29,800 | 1,300 | |||
Accumulated deficit | (175,893) | (88,277) | (25,597) | |||
Incurred net loss | 87,600 | 12,700 | ||||
Cash outflow from operation | (15,138) | $ (2,203) | (20,865) | ¥ (2,521) | ||
Cash [Member] | ||||||
Going Concern (Details) [Line Items] | ||||||
Accumulated deficit | (175,900) | (88,200) | $ (25,600) | $ 12,800 | ||
Cash outflow from operation | ¥ (15,100) | $ (2,200) | (20,900) | |||
Net cash outflow of time deposits | ¥ 5,800 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 CNY (¥) | Mar. 31, 2020 CNY (¥) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Restricted cash | ¥ 72,400,000 | ¥ 67,200,000 | ||||
Allowances for accounts receivable | 100,000 | ¥ 100,000 | ||||
Revenue percentage | 10% | 10% | ||||
Purchase percentage | 10% | |||||
Processing fees | 4,010,000 | $ 584 | ¥ 5,980,000 | ¥ 900,000 | ||
Deferred revenue | 8,700,000 | |||||
Other income | ¥ 600,000 | 2,900,000 | 1,300,000 | |||
Warrant period | 1 year | 1 year | ||||
Value added tax percentage | In the PRC, value added tax (the “VAT”) of 17% (before May 1, 2018), 16% (from May 1, 2018 to April 1, 2019) and 13% (after April 1, 2019 until now) on invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The Company reports revenue net of VAT. VIE and its subsidiary in China that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. | In the PRC, value added tax (the “VAT”) of 17% (before May 1, 2018), 16% (from May 1, 2018 to April 1, 2019) and 13% (after April 1, 2019 until now) on invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The Company reports revenue net of VAT. VIE and its subsidiary in China that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. | ||||
Advertising expenses | $ 100 | 100,000 | ||||
Shipping and handling fees | 1,600,000 | 1,400,000 | 1,200,000 | |||
Research and development cost | 16,000,000 | 14,100,000 | 7,200,000 | |||
Benefit expenses | ¥ 1,300,000 | 1,100,000 | 400,000 | |||
Registered capital percentage | 50% | 50% | ||||
Reserves and surplus | 10% | 10% | ||||
Statutory reserve funds | ¥ 200,000 | |||||
Minimum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Estimated useful life | 3 years | 3 years | ||||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Estimated useful life | 10 years | 10 years | ||||
Customer Two [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Revenue percentage | 10% | 10% | 10% | |||
Revenue | ¥ 25,900,000 | 54,600 | ¥ 44,700,000 | |||
Accounts receivable | 11,900,000 | 6,300,000 | ||||
Customer One [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Revenue | 44,400,000 | $ 116,400 | ¥ 102,100,000 | |||
Accounts receivable | 14,000,000 | ¥ 8,300,000 | ||||
Customer Three [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Revenue percentage | 10% | 10% | ||||
Revenue | 25,800,000 | |||||
Accounts receivable | ¥ 9,400,000 | ¥ 4,300,000 | ||||
Customer Four [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Revenue percentage | 10% | 10% | ||||
Accounts receivable | ¥ 8,600,000 | |||||
Supplier One [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Purchase percentage | 10% | 10% | ||||
Processing fees | ¥ 39,500 | |||||
No supplier [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Purchase percentage | 10% | 10% | ||||
USD [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Exchange rate | 0 | |||||
RMB [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Exchange rate | 6.8717 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of property and straight-line method over their estimated useful lives | 12 Months Ended |
Mar. 31, 2023 | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Office real estate | 48 years |
Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Furniture and equipment | 3 years |
Production and other machineries | 5 years |
Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Furniture and equipment | 6 years |
Production and other machineries | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates revenue - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Disaggregates Revenue Abstract | |||
OEM/ODM | ¥ 200,450 | ¥ 273,979 | ¥ 195,995 |
In-house brand | 98 | 1,529 | 6,157 |
Face mask | 44,747 | ||
Total | ¥ 200,548 | ¥ 275,508 | ¥ 246,899 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of basic net loss per share ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 $ / shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Mar. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net loss attributable to UTime Limited, basic | ¥ | ¥ (87,616) | ¥ (38,833) | ¥ (16,627) | |
Denominator: | ||||
Weighted average shares outstanding, basic | shares | 11,229,985 | 8,164,771 | 4,517,793 | |
Net loss attributable to UTime Limited per ordinary share: | ||||
Basic | (per share) | ¥ (7.8) | $ (1.14) | ¥ (4.76) | ¥ (3.68) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of basic net loss per share (Parentheticals) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 CNY (¥) ¥ / shares shares | Mar. 31, 2023 $ / shares | Mar. 31, 2022 CNY (¥) ¥ / shares shares | Mar. 31, 2021 CNY (¥) ¥ / shares shares | |
Schedule Of Basic Net Loss Per Share Abstract | ||||
Net loss attributable to UTime Limited, diluted | ¥ | ¥ (87,616) | ¥ (38,833) | ¥ (16,267) | |
Weighted average shares outstanding, diluted | shares | 11,229,985 | 8,164,771 | 4,517,793 | |
Diluted | (per share) | ¥ (7.80) | $ (1.14) | ¥ (4.76) | ¥ (3.68) |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - CNY (¥) ¥ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts Receivable, Net [Abstract] | ||
Allowance for doubtful accounts | ¥ 0.1 | ¥ 0.1 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Accounts Receivable Net [Abstract] | ||
Accounts receivable | ¥ 52,444 | ¥ 22,543 |
Allowance for doubtful accounts | (136) | (126) |
Accounts receivable, net | ¥ 52,308 | ¥ 22,417 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of movement of allowance for doubtful accounts - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Movement of Allowance For Doubtful Accounts [Abstract] | |||
Balance at beginning of year | ¥ 126 | ¥ 878 | ¥ 838 |
Additions for the year | 50 | ||
Written off for the year | (748) | ||
Foreign currency translation difference | 10 | (4) | (10) |
Balance at the end of year | ¥ 136 | ¥ 126 | ¥ 878 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets, Net (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2023 | |
Prepaid Expenses and Other Current Assets, Net (Details) [Line Items] | ||
Expire date | Mar. 31, 2022 | |
Other receivables | ¥ 5 | ¥ 2 |
Allowance for doubtful accounts on advance to suppliers | 1.7 | 1.7 |
Prepaid Expenses and Other Current Assets [Member] | ||
Prepaid Expenses and Other Current Assets, Net (Details) [Line Items] | ||
Other receivables | ¥ 8 | ¥ 7 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets, Net (Details) - Schedule of prepaid expenses and other current assets, net - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Prepaid Expenses and Other Current Assets Net [Abstract] | ||
Advance to suppliers | ¥ 64,827 | ¥ 40,620 |
Input GST/IVA | 412 | 568 |
Receivables from supply chain service provider | 7,648 | 4,829 |
Expected return assets | 1 | 1 |
Other receivables | 24,282 | 21,460 |
Allowance for doubtful accounts | (1,662) | (1,663) |
Prepaid expenses and other current assets, net | ¥ 95,508 | ¥ 65,815 |
Prepaid Expenses and Other Cu_5
Prepaid Expenses and Other Current Assets, Net (Details) - Schedule of other current assets - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of other current assets [Abstract] | |||
Balance at beginning of year | ¥ 1,663 | ¥ 674 | ¥ 4,006 |
Additions (reversal) for the year | 3,406 | (886) | |
Written off for the year | (2,359) | (2,446) | |
Foreign currency translation difference | (1) | (58) | |
Balance at the end of year | ¥ 1,662 | ¥ 1,663 | ¥ 674 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventory - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule Of Inventory Abstract | ||
Raw materials | ¥ 12,294 | ¥ 32,004 |
Work in progress | 2,972 | 1,326 |
Finished goods | 11,217 | 13,533 |
Total inventory, gross | 26,483 | 46,863 |
Inventory reserve | (10,314) | (10,792) |
Total inventory, net | ¥ 16,169 | ¥ 36,071 |
Inventories (Details) - Sched_2
Inventories (Details) - Schedule of inventory reserve - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Inventory Reserve Abstract | |||
Balance at beginning of year | ¥ 10,792 | ¥ 13,393 | ¥ 5,962 |
Additional charge (written off), net | 407 | (2,467) | 7,589 |
Foreign currency translation difference | (885) | (134) | (158) |
Balance at the end of year | ¥ 10,314 | ¥ 10,792 | ¥ 13,393 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 USD ($) | |
Property, Plant and Equipment [Abstract] | |||
Computer software with net values | ¥ 20 | ¥ 40 | |
Depreciation expenses | ¥ 4,600 | ¥ 3,300 | $ 3.2 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | ¥ 82,278 | ¥ 55,808 |
Less: accumulated depreciation | 20,849 | 17,538 |
Property and equipment, net | 61,429 | 38,270 |
Office real estate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 20,996 | 20,995 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,267 | 5,100 |
Production and other machineries [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | ¥ 55,015 | ¥ 29,713 |
Property and Equipment, Net (_3
Property and Equipment, Net (Details) - Schedule of production and other machineries lease out under operating lease - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Other Current Assets [Abstract] | ||
Cost | ¥ 29,578 | ¥ 29,578 |
Less: accumulated depreciation and amortization | 12,094 | 9,436 |
Net book value | ¥ 17,484 | ¥ 20,142 |
Lease Liabilities (Details)
Lease Liabilities (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Lease Liabilities (Details) [Line Items] | |||
Operating lease income | ¥ 3.1 | ¥ 2.9 | ¥ 2.4 |
Depreciation charges | ¥ 2.9 | ¥ 2.3 | |
Minimum [Member] | |||
Lease Liabilities (Details) [Line Items] | |||
Lease period | 1 year | ||
Maximum [Member] | |||
Lease Liabilities (Details) [Line Items] | |||
Lease period | 3 years | ||
Corresponding Equipment [Member] | |||
Lease Liabilities (Details) [Line Items] | |||
Depreciation charges | ¥ 2.7 |
Lease Liabilities (Details) - S
Lease Liabilities (Details) - Schedule of future minimum rental payments for operating leases ¥ in Thousands | Mar. 31, 2023 CNY (¥) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2024 | ¥ 804 |
2025 | 201 |
Total | ¥ 1,005 |
Lease Liabilities (Details) -_2
Lease Liabilities (Details) - Schedule of lease expense - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Lease Expense [Abstract] | |||
Operating lease cost | ¥ 3,289 | ¥ 2,265 | ¥ 1,016 |
Short-term lease cost | 973 | 1,163 | |
Lease cost | ¥ 3,289 | ¥ 3,238 | ¥ 2,179 |
Lease Liabilities (Details) -_3
Lease Liabilities (Details) - Schedule of cash flow supplemental disclosures - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflow from operating leases | ¥ 4,514 | ¥ 1,249 | ¥ 1,325 |
Lease Liabilities (Details) -_4
Lease Liabilities (Details) - Schedule of lease liabilities - Mar. 31, 2023 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Schedule of Lease Liabilities [Abstract] | ||
2024 | ¥ 4,575 | $ 666 |
2025 | 4,575 | 666 |
2026 and after | 7,356 | 1,071 |
Total lease payments | 16,506 | 2,403 |
Less: Interest | (1,957) | (285) |
Present value of lease liabilities | 14,549 | 2,118 |
Less current portion, record in current liabilities | (3,673) | (535) |
Present value of lease liabilities | ¥ 10,876 | $ 1,583 |
Lease Liabilities (Details) -_5
Lease Liabilities (Details) - Schedule of weighted average remaining lease terms and discount rates for all operating leases | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates for all Operating Leases [Abstract] | ||
Weighted average remaining lease term (years) | 3 years 7 months 9 days | 4 years 6 months 21 days |
Weighted average discount rate | 7% | 7.03% |
Equity Method Investment (Detai
Equity Method Investment (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Aggregate amount | ¥ 1.4 | |
Percentage of equity interest | 35% | |
Impairment losses | ¥ 0.8 |
Equity Method Investment (Det_2
Equity Method Investment (Details) - Schedule of equity method investments ¥ in Thousands | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) |
Schedule Of Equity Method Investments Abstract | |||
Cost | ¥ 1,425 | ¥ 1,425 | |
Less: accumulated impairment | (1,425) | (1,425) | |
Equity method investment, net |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - Schedule of other non-current assets ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2023 USD ($) | |
Schedule of Other Non Current Assets [Abstract] | |||
Prepayment for property and equipment, and intangible asset | ¥ 541 | ||
Total other non-current assets | ¥ 541 |
Borrowings (Details)
Borrowings (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jan. 10, 2023 CNY (¥) | Dec. 07, 2022 CNY (¥) | Dec. 02, 2022 CNY (¥) | Jul. 06, 2022 | Dec. 02, 2021 CNY (¥) | Nov. 18, 2021 CNY (¥) | Aug. 23, 2021 CNY (¥) | Nov. 18, 2020 CNY (¥) | Nov. 13, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) | Nov. 24, 2022 CNY (¥) | Aug. 31, 2022 CNY (¥) | May 19, 2022 CNY (¥) | May 18, 2022 CNY (¥) | Nov. 30, 2021 CNY (¥) | Aug. 31, 2021 CNY (¥) | Jul. 30, 2021 CNY (¥) | Jun. 29, 2021 CNY (¥) | Nov. 30, 2020 CNY (¥) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2023 USD ($) | Jul. 31, 2021 CNY (¥) | Jul. 19, 2021 CNY (¥) | |
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Working capital | ¥ 22,000,000 | |||||||||||||||||||||||
Interest rate | 3.75% | 5.5% | ||||||||||||||||||||||
Installment payment | ¥ 1,000,000 | |||||||||||||||||||||||
Outstanding loan balance, current | 1,820,000 | ¥ 1.58 | ||||||||||||||||||||||
Non-current liabilities | 6,440,000 | 5,530,000 | ||||||||||||||||||||||
Current liabilities | 245,700,000 | 163,100,000 | $ 35.8 | |||||||||||||||||||||
China Resources Bank of Zhuhai Co., Ltd. [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 22,000,000 | ¥ 2,000,000 | ¥ 22,000,000 | |||||||||||||||||||||
Date description | two-year | |||||||||||||||||||||||
Working capital | ¥ 2,000,000 | ¥ 22,000,000 | ||||||||||||||||||||||
Interest rate | 8.0% | 5.5% | 8.0% | 5.5% | ||||||||||||||||||||
TCL Factoring [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 20,000,000 | |||||||||||||||||||||||
TCL Factoring [Member] | UTime GZ [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Factoring agreement amount | 7,800,000 | 4,980,000 | ||||||||||||||||||||||
TCL Factoring [Member] | Minimum [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Interest rate | 8.0% | |||||||||||||||||||||||
TCL Factoring [Member] | Maximum [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Interest rate | 9.0% | |||||||||||||||||||||||
Bank of Communications [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 10,000,000 | |||||||||||||||||||||||
Working capital | ¥ 3,000,000 | |||||||||||||||||||||||
Interest rate | 4.6% | |||||||||||||||||||||||
Baosheng County Bank [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 3,000,000 | |||||||||||||||||||||||
Date description | September 2021 to August 2022, | July 28, 2021 to July 28, 2022 | ||||||||||||||||||||||
Working capital | ¥ 3,000,000 | |||||||||||||||||||||||
Interest rate | 8.0% | 8.0% | ||||||||||||||||||||||
Credit facility amount | ¥ 3,000,000 | |||||||||||||||||||||||
Monthly installment | ¥ 100,000 | |||||||||||||||||||||||
Installment payment | ¥ 100,000 | |||||||||||||||||||||||
PingAn Bank Co., Ltd [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 2,000,000 | |||||||||||||||||||||||
Interest rate | 12.96% | |||||||||||||||||||||||
Term in years | 3 years | |||||||||||||||||||||||
Balance loan amount | 2,000,000 | |||||||||||||||||||||||
Shenzhen Nanshan Baosheng County Bank Co., Ltd [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Credit facility | ¥ 3,000,000 | |||||||||||||||||||||||
WeBank Co., Ltd. [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 3 | |||||||||||||||||||||||
Interest rate | 9.45% | 11.34% | ||||||||||||||||||||||
Balance loan amount | 1,700,000 | |||||||||||||||||||||||
Credit facility | ¥ 1,990,000 | |||||||||||||||||||||||
Mr Bao [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Interest rate | 9% | |||||||||||||||||||||||
Balance loan amount | 6,400,000 | 7,000,000 | ||||||||||||||||||||||
Credit facility | ¥ 1,000,000 | |||||||||||||||||||||||
Installment payment | 1,990,000 | |||||||||||||||||||||||
China CITIC Bank [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 3 | |||||||||||||||||||||||
Interest rate | 4.35% | |||||||||||||||||||||||
Industrial and Commercial Bank of China (“ICBC”) Loan [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 5 | ¥ 5 | ||||||||||||||||||||||
Interest rate | 3.75% | |||||||||||||||||||||||
Shenzhen Rural Commercial Bank [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Outstanding loan balance, current | 840,000 | 560,000 | ||||||||||||||||||||||
Shenzhen Rural Commercial Bank [Member] | Minimum [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 7,000,000 | |||||||||||||||||||||||
Monthly installment | ¥ 70,000 | |||||||||||||||||||||||
Term in years | 3 years | |||||||||||||||||||||||
Current liabilities | 240,000 | |||||||||||||||||||||||
Shenzhen Rural Commercial Bank [Member] | Maximum [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Borrowing amount | ¥ 2,000,000 | |||||||||||||||||||||||
Interest rate | 4.5% | |||||||||||||||||||||||
Monthly installment | ¥ 20,000 | |||||||||||||||||||||||
Term in years | 3 years | |||||||||||||||||||||||
Shenzhen Rural Commercial Bank Loan One [Member] | Minimum [Member] | ||||||||||||||||||||||||
Borrowings (Details) [Line Items] | ||||||||||||||||||||||||
Non-current liabilities | 1,820,000 | ¥ 1,580,000 | ||||||||||||||||||||||
Current liabilities | ¥ 240,000 |
Borrowings (Details) - Schedule
Borrowings (Details) - Schedule of short term and long term borrowings - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | ||
Short-term borrowings | ||||
Short-term borrowings | ¥ 53,935 | ¥ 35,780 | ||
Long-term borrowings | ||||
Long-term borrowings | 7,950 | 8,820 | ||
Current portion of long-term borrowings | 1,080 | 800 | ||
Non-current portion of long-term borrowings | 6,870 | 8,020 | ||
China Resources Bank of Zhuhai Co., Ltd. loan 1 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [1] | 22,000 | ||
Secured loan 2 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [2] | 7,800 | 4,980 | |
Bank of Communications [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [3] | 2,500 | ||
Baosheng County Bank [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [4] | 2,300 | ||
China Resources Bank of Zhuhai Co., Ltd. loan 2 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [5] | 2,000 | ||
PingAn Bank Co., Ltd. [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [6] | 2,000 | 2,000 | |
China Resources Bank of Zhuhai Co., Ltd. Loan 3 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [7] | 22,000 | ||
China Resources Bank of Zhuhai Co., Ltd. Loan 4 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [8] | 2,000 | ||
Baosheng County Bank 2 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [9] | 2,400 | ||
WeBank Co., Ltd. 1 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [10] | 1,990 | ||
WeBank Co., Ltd. 2 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [11] | 1,000 | ||
WeBank Co., Ltd. 3 [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [12] | 1,745 | ||
China Resources SZITIC Trust Company Limited [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [13] | 3,000 | ||
Industrial and Commercial Bank of China (“ICBC”) Loan [Member] | ||||
Short-term borrowings | ||||
Short-term borrowings | [14] | 5,000 | [15] | |
Shenzhen Rural Commercial Bank loan 3 [Member] | ||||
Long-term borrowings | ||||
Long-term borrowings | [16] | 6,370 | 7,000 | |
Shenzhen Rural Commercial Bank loan 4 [Member] | ||||
Long-term borrowings | ||||
Long-term borrowings | [17] | ¥ 1,580 | ¥ 1,820 | |
[1] On November 13, 2020, UTime SZ entered into a credit agreement with China Resources Bank of Zhuhai Co., Ltd., according to which China Resources Bank of Zhuhai Co., Ltd. agreed to provide UTime SZ with a credit facility of up to RMB22 million with a two-year term from November 13, 2020 to November 13, 2022. On November 18, 2020, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd. to borrow RMB22 million as working capital for one year at an annual effective interest rate of 5.5%. The Company repaid the loan on November 18, 2021 and borrowed RMB22 million as working capital for one year at an annual effective interest rate of 5.5% on November 22, 2021. The Company repaid the loan on November 21, 2022. The loan is secured by the office owned by UTime SZ and guaranteed by UTime GZ, Mr. Bao and his spouse. In November 2020, UTime SZ and TCL Commercial Factoring (Shenzhen) Company Limited (“TCL Factoring”) executed a factoring agreement, pursuant to which UTime SZ received a revolving credit facility and may submit unlimited number of loan applications, so long as, among other conditions, the balance of the loan does not exceed the credit line. The annual effective interest rate range is from 8.0% to 9.0%. TCL Factoring has the right of recourse to UTime SZ, and as a result, these transactions were recognized as secured borrowings. UTime SZ agreed to pledge to TCL Factoring its accounts receivable from TCL Mobile Communication Company Limited (“TCL Huizhou”). This credit facility was also guaranteed respectively by Mr. Bao and UTime GZ, each for an amount up to RMB20 million. UTime SZ agreed not to withdraw, utilize or dispose the accounts receivables paid to it by TCL Huizhou without the prior consent of TCL Factoring. As of March 31, 2022 and 2023, UTime SZ obtained loans under the factoring agreement at the total amount of RMB4.98 million and RMB7.8 million, respectively. In July 2021, UTime SZ entered into a credit agreement with Bank of Communications to borrow RMB10 million for an unfixed term. On July 19, 2021, UTime SZ obtained a loan under this working capital loan agreement at the amount of RMB3 million which is due on July 6, 2022. The loan was guaranteed by Mr. Bao and his spouse. The loan bears a fixed interest rate of 4.6% per annum and will be due on July 6, 2022. The loan was fully repaid in July 2022. In August 2021, UTime SZ entered into a credit line agreement with Shenzhen Nanshan Baosheng County Bank Co., Ltd. (“Baosheng County Bank”) according to which Baosheng County Bank agreed to provide UTime SZ with a credit facility of up to RMB3 million with a one-year term from July 28, 2021 to July 28, 2022. On August 23, 2021, UTime SZ entered into a working capital loan agreement with Baosheng County Bank to borrow RMB3 million as working capital for one year at an annual effective interest rate of 8.0%. It is payable at monthly installment of RMB0.1 million from September 2021 to August 2022, with a balloon payment of the remaining balance in the last installment. The loan was fully repaid in August 2022. On December 2, 2021, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd., to borrow RMB2 million as working capital at an annual effective interest rate of 8.0%. The loan was repaid in October 2022. In November 2021, UTime SZ entered into a credit agreement with PingAn Bank Co., Ltd. to borrow RMB2 million for a term of 3 years, with an annual effective rate of 12.96%. The loan is guaranteed by Mr. Bao and his spouse. As of March 31, 2023 UTime SZ obtained loans under the credit agreement at the total amount of RMB2 million which will be due on November 2023. On November 24, 2022, UTime SZ entered into a working capital loan agreement with China Resources Bank of Zhuhai Co., Ltd., to borrow RMB22 million as working capital at an annual effective interest rate of 5.5%. The loan is secured by the office owned by UTime SZ and guaranteed by UTime GZ, Mr. Bao and his spouse. The loan will be due in November 2023. On August 31, 2022, UTime SZ entered into a credit line agreement with Shenzhen Nanshan Baosheng County Bank Co., Ltd. (“Baosheng County Bank”) according to which Baosheng County Bank agreed to provide UTime SZ with a credit facility of up to RMB3 million with a one-year term from August 31, 2022 to August 31, 2023. On August 31, 2022, UTime SZ entered into a working capital loan agreement with Baosheng County Bank to borrow RMB3 million as working capital for one year at an annual effective interest rate of 8.0%. It is payable at monthly installment of RMB0.1 million from September 2021 to August 2022, with a balloon payment of the remaining balance in the last installment. The loan is secured by the office owned by UTime SZ and guaranteed by UTime Guangxi, Mr. Bao and his spouse. On May 19, 2022, UTime SZ entered into a credit line agreement with WeBank Co., Ltd. (“WeBank”) according to which WeBank agreed to provide UTime SZ with a credit facility of up to RMB1.99 million with a two-year term from May 19, 2022 to May 19, 2024, with an annual effective interest rate of 9.45%. The loan is guaranteed by Mr. Bao. As of March 31, 2023 UTime SZ loans under the credit agreement was RMB1.99 million. In July 2021, UTime SZ entered into a credit agreement with Shenzhen Rural Commercial Bank to borrow RMB2 million for a term of 3 years, which is payable at monthly installment of RMB0.02 million from July 2021 to July 2024, with a balloon payment of the remaining balance in the last installment. The loan is secured by real estate owned by Mr. Bao and guaranteed by Mr. Bao. As of March 31, 2022 and 2023, the balance of the loan are RMB1.82 million and RMB1.58 million, respectively. Out of the total outstanding loan balance, current portion amounted were RMB0.24 million and RMB0.24 million, which is presented as current liabilities in the consolidated balance sheet and the remaining balance of RMB1.82 million and RMB1.58 million, which is presented as non-current liabilities in the consolidated balance sheet as of March 31, 2022 and 2023, respectively. |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities (Details) - CNY (¥) ¥ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
Supply chain service provider [Member] | ||
Other Payables and Accrued Liabilities (Details) [Line Items] | ||
Advance and services | ¥ 6.8 | ¥ 6.8 |
Advance refundable to a customer [Member] | ||
Other Payables and Accrued Liabilities (Details) [Line Items] | ||
Advance and services | 2.2 | 3.4 |
Materials Provided Customer [Member] | ||
Other Payables and Accrued Liabilities (Details) [Line Items] | ||
Advance and services | ¥ 2.3 | |
Advances refundable to a vendor [Member] | ||
Other Payables and Accrued Liabilities (Details) [Line Items] | ||
Advance and services | ¥ 3 |
Other Payables and Accrued Li_4
Other Payables and Accrued Liabilities (Details) - Schedule of other payables and accrued liabilities - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Other Payables And Accrued Liabilities Abstract | ||
Advance from customers | ¥ 17,087 | ¥ 16,607 |
Accrued payroll | 11,910 | 10,220 |
VAT payable | 7,292 | 1,484 |
Refund liabilities | 1 | 1 |
Product warranty | 50 | 50 |
Other payables | 18,432 | 15,786 |
Total | ¥ 54,772 | ¥ 44,148 |
Other Expenses_(Income), Net (D
Other Expenses/(Income), Net (Details) - Schedule of other expenses/(income), net - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Other Expenses Income Net Abstract | |||
Exchange losses | ¥ (3,179) | ¥ 2,316 | ¥ 3,703 |
Provision for doubtful accounts, net | 3,406 | (836) | |
Impairment of intangible asset | 348 | ||
Government grants | (594) | (2,851) | (1,289) |
Loss on equity method investment | 833 | ||
Others | 79 | 109 | 464 |
Total | ¥ (3,694) | ¥ 3,328 | ¥ 2,875 |
Income Tax Benefits (Details)
Income Tax Benefits (Details) - CNY (¥) | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 04, 2019 | |
Income Tax Benefits (Details) [Line Items] | ||||
Net loss before taxes (in Yuan Renminbi) | ¥ 90,200,000 | ¥ 39,400,000 | ¥ 17,000,000 | |
Income tax description | The subsidiary, VIE and subsidiary of VIE in the PRC are subject to a uniform income tax rate of 25% for the years presented. UTime SZ is regarded as a Certified High and New Technology Enterprise (“HNTE”) and entitled to a favorable statutory tax rate of 15%. Preferential tax treatment of UTime SZ as HNTE from November 2, 2015 to December 23, 2024 has been granted by the relevant tax authorities. UTime SZ is entitled to a preferential tax rate of 15% which is subject to review by State Taxation Administration every three years. As a result of these preferential tax treatments, the reduced tax rates applicable to UTime SZ for the years ended March 31, 2021, 2022 and 2023 are 15%. However, UTime SZ has not enjoyed the above-mentioned preferential tax treatments for the years ended March 31, 2021, 2022 and 2023 due to its loss position and as such there is no impact of these tax holidays on net loss per share. | |||
Additional tax deductions | 50% | |||
Additional tax deductions, description | The additional tax deduction has been increased from 50% of the qualified research and development expenses to 75%, effective from January 1, 2018 according to a tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). | |||
Additional tax deduction rate | 75% | |||
Qualified research and development expenses rate | 100% | |||
Withholding tax rate | 10% | |||
Dividend of tax rate | 10% | |||
Equity interest, percentage | 25% | 100% | ||
Operating loss (in Yuan Renminbi) | ¥ 152 | 116,200,000 | ||
Valuation allowance (in Yuan Renminbi) | 109.8 | 83,200,000 | ||
Carryforward amount (in Yuan Renminbi) | ¥ 42.2 | ¥ 33,900,000 | ||
Income tax benefit | 50% | |||
underpayment of taxes (in Yuan Renminbi) | ¥ 100,000 | |||
Hong Kong [Member] | ||||
Income Tax Benefits (Details) [Line Items] | ||||
Income tax rate percentage, description | The first HK$2 million of profits earned will be taxed at 8.25%, while the remaining profits will continue to be taxed at the existing 16.5% tax rate. | |||
Dividend of tax rate | 5% | |||
India [Member] | ||||
Income Tax Benefits (Details) [Line Items] | ||||
Income tax rate | 25% | |||
Mexico [Member] | ||||
Income Tax Benefits (Details) [Line Items] | ||||
Income tax rate | 30% | |||
PRC [Member] | ||||
Income Tax Benefits (Details) [Line Items] | ||||
Income tax rate | 25% |
Income Tax Benefits (Details) -
Income Tax Benefits (Details) - Schedule of deferred components of income taxes - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Deferred Components of Income Tax Expense [Abstract] | |||
Current tax benefits | ¥ 364 | ||
Deferred tax benefit | 171 | 46 | |
Total income tax benefit | ¥ 171 | ¥ 46 | ¥ 364 |
Income Tax Benefits (Details)_2
Income Tax Benefits (Details) - Schedule of deferred tax assets and liabilities - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Deferred income tax assets (liabilities) : | ||
Impairment on receivables | ¥ 450 | ¥ 2,590 |
Inventories | 1,889 | 3,358 |
Deferred revenue | 2,174 | 977 |
Accrued expenses and employee benefits | 3,258 | 1,411 |
Equity method investment and others | 1,075 | |
Net operating loss carry forwards | 27,977 | 21,678 |
Total gross deferred tax assets | 35,748 | 31,089 |
Less: valuation allowances | (32,490) | (27,747) |
Total deferred tax assets, net of valuation allowance | 3,258 | 3,342 |
Prepaid expenses and other current assets | (3,258) | (1,299) |
Unrealized foreign exchange difference and others | (2,217) | |
Amortization & impairment of intangible asset | (295) | (292) |
Deferred tax liabilities | ¥ (295) | ¥ (466) |
Income Tax Benefits (Details)_3
Income Tax Benefits (Details) - Schedule of income tax benefits | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | |||
Statutory rate in PRC | 25% | 25% | 25% |
Effect of preferential tax treatment | (1.00%) | (4.00%) | (2.00%) |
Effect of different tax jurisdiction | (19.00%) | (4.00%) | (6.00%) |
Effect of permanence differences | (2.00%) | (1.00%) | |
Research and development super-deduction | 2% | 4% | 5% |
Changes in valuation allowance | (7.00%) | (19.00%) | (21.00%) |
Over provision in prior year | 2% | ||
Total income tax benefits | 2% |
Related Parties Balances and _3
Related Parties Balances and Transactions (Details) - Sep. 17, 2021 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Mr Bao [Member] | ||
Related Parties Balances and Transactions (Details) [Line Items] | ||
Borrowed amount | ¥ 3 | $ 0.5 |
Related Parties Balances and _4
Related Parties Balances and Transactions (Details) - Schedule of related parties transactions | 12 Months Ended |
Mar. 31, 2023 | |
Mr. Bao [Member] | |
Related Party Transaction [Line Items] | |
Related parties, relationship | Controlling shareholder of the Company |
Mr. He [Member] | |
Related Party Transaction [Line Items] | |
Related parties, relationship | Beneficial shareholder of the Company |
Mr. Yu [Member] | |
Related Party Transaction [Line Items] | |
Related parties, relationship | Chief Financial Officer of the Company |
Philectronics [Member] | |
Related Party Transaction [Line Items] | |
Related parties, relationship | An equity method investee of the Company |
Grandsky Phoenix Limited [Member] | |
Related Party Transaction [Line Items] | |
Related parties, relationship | 100% owned by Mr. Bao |
Related Parties Balances and _5
Related Parties Balances and Transactions (Details) - Schedule of due from related parties - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Short-Term Debt [Line Items] | ||
Due from related parties | ¥ 584 | ¥ 1,422 |
Philectronics [Member] | ||
Short-Term Debt [Line Items] | ||
Due from related parties | 536 | 486 |
Mr. Bao [Member] | ||
Short-Term Debt [Line Items] | ||
Due from related parties | 47 | |
Grandsky Phoenix Limited [Member] | ||
Short-Term Debt [Line Items] | ||
Due from related parties | 889 | |
Mr. He [Member] | ||
Short-Term Debt [Line Items] | ||
Due from related parties | ¥ 48 |
Related Parties Balances and _6
Related Parties Balances and Transactions (Details) - Schedule of due to related parties - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Related Parties Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ¥ 5,500 | ¥ 4,499 |
Mr. Bao [Member] | ||
Related Parties Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | 4,779 | 3,819 |
Philectronics [Member] | ||
Related Parties Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | 482 | 482 |
Grandsky Phoenix Limited [Member] | ||
Related Parties Balances and Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ¥ 239 | ¥ 198 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) $ / shares in Units, $ in Thousands, ¥ in Millions | 12 Months Ended | ||||||
Nov. 07, 2023 shares | Apr. 08, 2021 CNY (¥) shares | Apr. 08, 2021 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Sep. 09, 2022 shares | Mar. 31, 2022 shares | Mar. 31, 2021 shares | |
Shareholders’ Equity (Details) [Line Items] | |||||||
Ordinary shares authorized | 140,000,000 | 140,000,000 | 140,000,000 | ||||
Ordinary shares issued | 13,567,793 | 8,267,793 | 4,517,793 | ||||
Ordinary shares outstanding | 13,567,793 | 8,267,793 | 4,517,793 | ||||
Public price per share (in Dollars per share) | $ / shares | $ 4 | ||||||
Gross proceeds (in Dollars) | $ | $ 15,000 | ||||||
Offering fees and expenses | ¥ 88.2 | $ 13,900 | |||||
Ordinary shares issued | 8,267,793 | ||||||
Ordinary shares outstanding | 8,267,793 | ||||||
Common stock for issuance | 5,300,000 | ||||||
Common stock issued and granted | 5,300,000 | ||||||
Common stock granted fair value (in Dollars) | $ | $ 9,301,500 | ||||||
Share issuance per share (in Dollars per share) | $ / shares | $ 1.755 | ||||||
Grandsky Phoenix Limited [Member] | |||||||
Shareholders’ Equity (Details) [Line Items] | |||||||
Repurchase of ordinary shares | 3,750,000 | 3,750,000 |
Revenue and Geography Informa_3
Revenue and Geography Information (Details) ¥ in Millions, $ in Millions | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) |
Revenue and Geography Information (Details) [Line Items] | |||
Other non-current assets | ¥ 237 | $ 34.5 | ¥ 192.9 |
Intangible assets | 1.8 | 2.6 | |
Other Current Assets [Member] | |||
Revenue and Geography Information (Details) [Line Items] | |||
Other non-current assets | ¥ 0.5 |
Revenue and Geography Informa_4
Revenue and Geography Information (Details) - Schedule of revenue and geography information - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total | ¥ 200,547 | ¥ 275,508 | ¥ 246,899 |
Feature phone [Member] | |||
Segment Reporting Information [Line Items] | |||
Total | 106,279 | 111,066 | 144,032 |
Smart phone [Member] | |||
Segment Reporting Information [Line Items] | |||
Total | 73,819 | 154,143 | 56,885 |
Face mask [Member] | |||
Segment Reporting Information [Line Items] | |||
Total | 44,747 | ||
Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Total | ¥ 20,449 | ¥ 10,299 | ¥ 1,235 |
Revenue and Geography Informa_5
Revenue and Geography Information (Details) - Schedule of company’s sales breakdown based on location - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | ¥ 200,547 | ¥ 275,508 | ¥ 246,899 |
Mainland China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 82,481 | 70,314 | 112,400 |
Hong Kong [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 14,228 | 18,949 | 30,030 |
India [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 97 | 1,529 | 6,157 |
Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 39,515 | 25,905 | 19,536 |
The United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 18,158 | 28,154 | 17,277 |
Mexico [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 29,085 | 12,372 | |
South America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 951 | 118,285 | 45,743 |
Others [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | ¥ 16,032 | ¥ 15,756 |
Revenue and Geography Informa_6
Revenue and Geography Information (Details) - Schedule of location of company’s long-lived assets - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Revenue, Major Customer [Line Items] | ||
Total | ¥ 74,460 | ¥ 54,589 |
PRC [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total | 74,438 | 54,543 |
India [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total | 19 | 46 |
Mexico [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total | ¥ 3 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Condensed Financial Information of the Parent Company (Details) [Line Items] | ||
Totaling amount | ¥ 72.1 | ¥ 71.9 |
Financing services | 19 | |
IPO [Member] | ||
Condensed Financial Information of the Parent Company (Details) [Line Items] | ||
Financing services | ¥ 88.2 |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of balance sheet - Parent Company [Member] - CNY (¥) ¥ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets | ||
Cash and cash equivalents | ¥ 2 | ¥ 1 |
Prepaid expenses and other current assets | 25,109 | 23,195 |
Inter-company receivable | 79,393 | 73,345 |
Non-current assets | ||
Investment in subsidiary | (18,929) | 1,610 |
Total assets | 85,575 | 98,151 |
Current liabilities | ||
Inter-company payable | 35,634 | 31,492 |
Due to related parties | 313 | 289 |
Other payables and accrued liabilities | 5,539 | 1,382 |
Total liabilities | 41,486 | 33,163 |
Shareholders’ equity | ||
Preference share, par value US$0.0001; Authorized:10,000,000 shares; none issued and outstanding as at As of March 31, 2022 and As of March 31, 2023, respectively | ||
Ordinary shares, par value US$0.0001; Authorized:140,000,000 shares; Issued and outstanding: 8,267,793 shares as at March 31,2022 and 13,567,793 shares as at March 31, 2023 | 9 | 5 |
Additional paid-in capital | 216,504 | 152,236 |
Accumulated deficit | (175,893) | (88,277) |
Accumulated other comprehensive income | 3,469 | 1,024 |
Total shareholder’s equity | 44,089 | 64,988 |
Total liabilities and shareholders’ equity | ¥ 85,575 | ¥ 98,151 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of balance sheet (Parentheticals) - Parent Company [Member] - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Balance Sheet [Abstract] | ||
Preferred share, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred share, shares authorized | 10,000,000 | 10,000,000 |
Preferred share, shares issued | 0 | 0 |
Preferred share, shares outstanding | 0 | 0 |
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 140,000,000 | 140,000,000 |
Ordinary shares, shares issued | 13,567,793 | 8,267,793 |
Ordinary shares, shares outstanding | 13,567,793 | 8,267,793 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of comprehensive loss - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Comprehensive Loss [Abstract] | |||
Loss from equity method investments | ¥ (18,396) | ¥ (32,350) | ¥ (12,618) |
Operating expenses | (69,220) | (6,483) | (4,009) |
Net loss | (87,616) | (38,833) | (16,627) |
Foreign currency translation difference | 2,445 | (377) | 1,868 |
Comprehensive loss | ¥ (85,171) | ¥ (39,210) | ¥ (14,759) |
Condensed Financial Informati_7
Condensed Financial Information of the Parent Company (Details) - Schedule of cash flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 CNY (¥) | |||
CASH FLOW FROM OPERATING ACTIVTIES | ||||||
Net loss | ¥ (87,616) | ¥ (38,833) | ¥ (16,627) | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||
Equity loss of subsidiaries | 18,396 | 32,350 | 12,618 | |||
Share-based compensation and expenses | 63,656 | $ 9,264 | ||||
Changes in operating assets and liabilities: | ||||||
Prepaid expenses and other current assets | (1,173) | (8,424) | ||||
Inter-company payable | 1,539 | 8,000 | [1] | 12,206 | [1] | |
Related parties | (23) | |||||
Other payables and accrued liabilities | 4,026 | 1,269 | 131 | |||
Net cash used in operating activities | 1 | 1,613 | (119) | |||
Effect of exchange rate changes on cash and cash equivalent and restricted cash | (1,618) | 125 | ||||
Net change in cash and cash equivalent | 1 | (5) | 6 | |||
Cash and cash equivalents, beginning of year | 1 | 6 | ||||
Cash and cash equivalents, end of year | ¥ 2 | ¥ 1 | ¥ 6 | |||
[1] For the year ended March 31, 2022, UTime HK received the IPO proceeds of RMB88.2 million and made down payment for financing services of RMB19 million on behalf of UTime Limited. |