Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Entity File Number | 001-39364 |
Entity Registrant Name | BlueCity Holdings Limited |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Block 2 Tower B Room 028, |
Entity Address, Address Line Two | No. 22 Pingguo Shequ, |
Entity Address, Address Line Three | Bai Zi Wan Road, Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100022 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Central Index Key | 0001791278 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
ICFR Auditor Attestation Flag | false |
Entity Address, Country | CN |
Auditor Name | KPMG Huazhen LLP |
Auditor Firm ID | 1186 |
Auditor Location | Beijing, China |
American Depository shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each two American depositary shares representing one Class A ordinary share |
Trading Symbol | BLCT |
Security Exchange Name | NASDAQ |
Ordinary shares. | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 18,733,449 |
Class A | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share* |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 13,618,609 |
No Trading Symbol Flag | true |
Class B | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 5,114,840 |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Junchen Sun, Acting |
Entity Address, Address Line One | Block 2 Tower B Room 028, No. 22 |
Entity Address, Address Line Two | Pingguo Shequ |
Entity Address, Address Line Three | Bai Zi Wan Road, Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100022 |
City Area Code | 86 10 |
Local Phone Number | 5876-9855 |
Contact Personnel Email Address | sunjunchen@bluecity.com |
Entity Address, Country | CN |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 349,785,624 | $ 54,888,997 | ¥ 439,492,788 |
Term deposits | 172,257,360 | ||
Accounts receivable, net (net of allowance of nil as of December 31, 2020 and 2021, respectively) | 12,878,562 | 2,020,927 | 5,588,023 |
Inventories | 7,401,509 | 1,161,458 | 6,853,202 |
Prepayments and other current assets | 99,777,088 | 15,657,202 | 58,629,416 |
Total current assets | 469,842,783 | 73,728,584 | 682,820,789 |
Non-current assets | |||
Investment securities | 50,000 | ||
Property and equipment, net | 11,186,159 | 1,755,352 | 11,445,548 |
Intangible assets, net | 44,204,317 | 6,936,622 | 52,084,512 |
Goodwill | 81,751,864 | 12,828,651 | 196,002,568 |
Other non-current assets | 3,177,465 | 498,614 | 2,426,128 |
Total non-current assets | 140,319,805 | 22,019,239 | 262,008,756 |
Total assets | 610,162,588 | 95,747,823 | 944,829,545 |
Current liabilities | |||
Accounts payable (including accounts payable of VIE without recourse to the Company of 6,817,776 and RMB11,444,579 as of December 31, 2020 and 2021, respectively) | 28,507,188 | 4,473,400 | 20,372,680 |
Deferred revenue (including deferred revenue of VIE without recourse to the Company of RMB34,541,710 and RMB35,217,012 as of December 31, 2020 and 2021, respectively) | 35,796,254 | 5,617,213 | 35,226,237 |
Income tax payable (including income tax payable of VIE without recourse to the Company of RMB291,441 and RMB1,460,149 as of December 31, 2020 and 2021, respectively) | 5,047,173 | 792,012 | 2,122,765 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIE without recourse to the Company of RMB49,315,134 and RMB27,246,274 as of December 31, 2020 and 2021, respectively) | 82,962,351 | 13,018,602 | 118,958,796 |
Total current liabilities | 152,312,966 | 23,901,227 | 176,680,478 |
Non-current liabilities | |||
Deferred income tax liabilities (including deferred income tax liabilities of VIE without recourse to the Company of 10,954,883 and RMB9,603,096 as of December 31, 2020 and 2021, respectively) | 9,603,096 | 1,506,935 | 10,954,883 |
Other non-current liabilities (including other non-current liabilities of VIE without recourse to the Company of nil and RMB2,300,000 as of December 31, 2020 and 2021, respectively) | 2,300,000 | 360,920 | |
Total non-current liabilities | 11,903,096 | 1,867,855 | 10,954,883 |
Total liabilities | 164,216,062 | 25,769,082 | 187,635,361 |
Commitments and contingencies (Note 20) | |||
SHAREHOLDERS' EQUITY: | |||
Additional paid-in capital | 2,204,845,216 | 345,988,328 | 2,188,870,625 |
Accumulated other comprehensive loss | (125,113,629) | (19,633,059) | (107,514,737) |
Accumulated deficit | (1,633,797,666) | (256,378,506) | (1,324,173,722) |
Total shareholders' equity | 445,946,526 | 69,978,741 | 757,194,184 |
Total liabilities and shareholders' equity | 610,162,588 | 95,747,823 | 944,829,545 |
Class A | |||
SHAREHOLDERS' EQUITY: | |||
Ordinary Shares | 9,487 | 1,489 | 8,572 |
Class B | |||
SHAREHOLDERS' EQUITY: | |||
Ordinary Shares | ¥ 3,118 | $ 489 | ¥ 3,446 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Jan. 01, 2021CNY (¥) | Dec. 31, 2020CNY (¥)shares | Jul. 31, 2020$ / sharesshares | Jan. 01, 2020CNY (¥) | Dec. 31, 2019shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2013$ / sharesshares |
Accounts receivable, allowance | ¥ | ¥ 0 | ¥ 0 | ¥ 1,857,463 | ||||||
Accounts payable | 28,507,188 | $ 4,473,400 | 20,372,680 | ||||||
Deferred revenue | 35,796,254 | 5,617,213 | ¥ 35,226,237 | 35,226,237 | ¥ 32,555,402 | ||||
Income tax payable | 5,047,173 | 792,012 | 2,122,765 | ||||||
Accrued expenses and other current liabilities | 82,962,351 | 13,018,602 | 118,958,796 | ||||||
Deferred income tax liabilities | 9,603,096 | 1,506,935 | ¥ 10,954,883 | ||||||
Other non-current liabilities | ¥ 2,300,000 | $ 360,920 | |||||||
Ordinary Shares | |||||||||
Par value per share (in dollars per share) | $ / shares | $ 0.0001 | ||||||||
Shares authorized (in shares) | 5,000,000,000 | 500,000,000 | |||||||
Shares issued (in shares) | 5,114,840 | 5,114,840 | 5,614,840 | ||||||
Shares outstanding (in shares) | 5,614,840 | ||||||||
Class A | |||||||||
Ordinary Shares | |||||||||
Par value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Shares authorized (in shares) | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | |||||
Shares issued (in shares) | 13,618,609 | 13,618,609 | 12,210,830 | ||||||
Shares outstanding (in shares) | 13,618,609 | 13,618,609 | 12,210,830 | ||||||
Class B | |||||||||
Ordinary Shares | |||||||||
Par value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Shares authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||
Shares issued (in shares) | 5,114,840 | 5,114,840 | 5,614,840 | ||||||
Shares outstanding (in shares) | 5,114,840 | 5,114,840 | 5,614,840 | ||||||
VIE | |||||||||
Accounts payable | ¥ | ¥ 11,444,579 | ¥ 6,817,776 | |||||||
Deferred revenue | ¥ | 35,217,012 | 34,541,710 | |||||||
Income tax payable | ¥ | 1,460,149 | 291,441 | |||||||
Accrued expenses and other current liabilities | ¥ | 27,246,274 | 49,315,134 | |||||||
Deferred income tax liabilities | ¥ | 9,603,096 | 10,954,883 | |||||||
Other non-current liabilities | ¥ | ¥ 2,300,000 | ¥ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Revenues | ¥ 1,076,591,430 | $ 168,940,688 | ¥ 1,031,323,444 | ¥ 758,887,906 |
Cost and expenses: | ||||
Cost of revenues | (728,065,167) | (114,249,312) | (720,370,586) | (546,211,172) |
Selling and marketing expenses | (220,464,208) | (34,595,645) | (187,281,558) | (119,436,794) |
Technology and development expenses | (219,741,246) | (34,482,197) | (149,255,609) | (129,651,820) |
General and administrative expenses | (109,099,156) | (17,120,038) | (209,086,316) | (24,439,169) |
Impairment of intangible assets | (2,915,000) | (457,427) | 0 | 0 |
Impairment of goodwill | (106,949,249) | (16,782,671) | ||
Total cost and expenses | (1,387,234,026) | (217,687,290) | (1,265,994,069) | (819,738,955) |
Operating loss | (310,642,596) | (48,746,602) | (234,670,625) | (60,851,049) |
Changes in fair value of financial instruments | (5,247) | (9,024,437) | ||
Gain (loss) on disposal of an investment security | (50,000) | (7,846) | 4,863,233 | |
Gain on extinguishment of a convertible debt | 8,986,048 | |||
Interest income | 1,889,658 | 296,529 | 6,517,961 | 8,890,484 |
Loss before income taxes | (308,802,938) | (48,457,919) | (223,294,678) | (51,998,954) |
Income tax (expense) benefit | (821,006) | (128,834) | 1,441,814 | (930,554) |
Net loss | (309,623,944) | (48,586,753) | (221,852,864) | (52,929,508) |
(Accretion) reversal of accretion and modification of Redeemable Convertible Preferred Shares to redemption value | 244,080,678 | (631,005,563) | ||
Net (loss) income available for distribution | ¥ (309,623,944) | $ (48,586,753) | ¥ 22,227,814 | ¥ (683,935,071) |
Net (loss) income per Class A and Class B Ordinary Share | ||||
-Basic | (per share) | ¥ (16) | $ (2.51) | ¥ 1.30 | ¥ (121.81) |
-Diluted | (per share) | ¥ (16) | $ (2.51) | ¥ (14.63) | ¥ (121.81) |
Weighted average number of Class A and Class B Ordinary Share and ordinary share equivalents outstanding used in computing net (loss) income per Class A and Class B Ordinary Share | ||||
-Basic | shares | 19,352,595 | 19,352,595 | 11,974,046 | 5,614,840 |
-Diluted | shares | 19,352,595 | 19,352,595 | 15,208,426 | 5,614,840 |
Other comprehensive loss | ||||
Unrealized gains on an available-for-sale investment, net of nil income taxes | ¥ 1,456,370 | ¥ 1,591,098 | ||
Reclassification adjustment for gains on available-for-sale investment realized in net income, net of nil income taxes | (4,863,233) | |||
Foreign currency translation adjustment, net of nil income taxes | ¥ (17,598,892) | $ (2,761,650) | (63,005,931) | (20,118,769) |
Comprehensive loss | ¥ (327,222,836) | $ (51,348,403) | ¥ (288,265,658) | ¥ (71,457,179) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||
Unrealized gain on an available-for-sale investment, income taxes | ¥ 0 | ¥ 0 | ¥ 0 |
Foreign currency translation adjustment, income taxes | 0 | 0 | 0 |
Reclassification adjustment for gains on available-for-sale securities realized in net income, income taxes | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (DEFICIT) | Ordinary shares.Series A Convertible Preferred SharesCNY (¥)shares | Ordinary shares.Series A-1 Redeemable Convertible Preferred SharesCNY (¥)shares | Ordinary shares.Series B Redeemable Convertible Preferred SharesCNY (¥)shares | Ordinary shares.Series C Redeemable Convertible Preferred SharesCNY (¥)shares | Ordinary shares.Series C-1 Redeemable Convertible Preferred SharesCNY (¥)shares | Ordinary shares.Series D Redeemable Convertible Preferred SharesCNY (¥)shares | Ordinary shares.Class ACNY (¥)shares | Ordinary shares.Class AUSD ($)shares | Ordinary shares.Class BCNY (¥)shares | Ordinary shares.Class BUSD ($)shares | Ordinary shares.CNY (¥)shares | Additional paid in capital.Series A Convertible Preferred SharesCNY (¥) | Additional paid in capital.Series A-1 Redeemable Convertible Preferred SharesCNY (¥) | Additional paid in capital.Series B Redeemable Convertible Preferred SharesCNY (¥) | Additional paid in capital.Series C Redeemable Convertible Preferred SharesCNY (¥) | Additional paid in capital.Series C-1 Redeemable Convertible Preferred SharesCNY (¥) | Additional paid in capital.Series D Redeemable Convertible Preferred SharesCNY (¥) | Additional paid in capital.CNY (¥) | Additional paid in capital.USD ($) | Accumulated other comprehensive income (loss)CNY (¥) | Accumulated other comprehensive income (loss)USD ($) | Accumulated deficitCNY (¥) | Accumulated deficitUSD ($) | Series A Convertible Preferred SharesCNY (¥) | Series A-1 Redeemable Convertible Preferred SharesCNY (¥) | Series B Redeemable Convertible Preferred SharesCNY (¥) | Series C Redeemable Convertible Preferred SharesCNY (¥) | Series C-1 Redeemable Convertible Preferred SharesCNY (¥) | Series D Redeemable Convertible Preferred SharesCNY (¥) | CNY (¥)shares | USD ($)shares |
Beginning balance at Dec. 31, 2018 | ¥ 3,446 | ¥ 0 | ¥ (22,574,272) | ¥ (662,466,465) | ¥ (685,037,291) | ||||||||||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | shares | 5,614,840 | ||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Net loss | ¥ 0 | 0 | (52,929,508) | (52,929,508) | |||||||||||||||||||||||||||
Change in redemption value of redeemable convertible preferred shares | ¥ 1,315,008 | ¥ 237,680,316 | ¥ 144,659,627 | ¥ 104,388,417 | ¥ 142,962,195 | ||||||||||||||||||||||||||
Accretion of redeemable convertible preferred shares | 0 | 0 | (631,005,563) | (631,005,563) | |||||||||||||||||||||||||||
Unrealized gain on an available-for-sale investment, net of nil income taxes | 0 | 0 | 1,591,098 | 1,591,098 | $ 230,731 | ||||||||||||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | 0 | 0 | (20,118,769) | (20,118,769) | |||||||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | ¥ 3,446 | 0 | (41,101,943) | (1,346,401,536) | (1,387,500,033) | ||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | shares | 5,614,840 | ||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Net loss | (221,852,864) | (221,852,864) | |||||||||||||||||||||||||||||
Change in redemption value of redeemable convertible preferred shares | 244,080,678 | 244,080,678 | |||||||||||||||||||||||||||||
Change in redemption value of redeemable convertible preferred shares | 707,682 | (68,419,392) | (49,340,009) | (40,873,954) | (86,155,005) | ||||||||||||||||||||||||||
Re-designation of Ordinary Shares into Class B Ordinary Shares immediately prior to the completion of the initial public offering | ¥ 3,446 | ¥ (3,446) | |||||||||||||||||||||||||||||
Re-designation of Ordinary Shares into Class B Ordinary Shares immediately prior to the completion of the initial public offering (in shares) | shares | 5,614,840 | 5,614,840 | (5,614,840) | ||||||||||||||||||||||||||||
Issuance of ordinary shares upon initial public offering ("IPO"), net of offering costs of US$[] | ¥ 1,860 | 501,225,388 | 501,227,248 | ||||||||||||||||||||||||||||
Issuance of ordinary shares upon initial public offering ("IPO"), net of offering costs of US$[] (in shares) | shares | 2,650,000 | 2,650,000 | |||||||||||||||||||||||||||||
Conversion of Preferred Shares into ordinary shares | ¥ 1,010 | ¥ 1,328 | ¥ 1,307 | ¥ 875 | ¥ 687 | ¥ 1,505 | ¥ 33,041,467 | ¥ 18,779,626 | ¥ 418,335,584 | ¥ 280,067,991 | ¥ 219,710,378 | ¥ 530,806,760 | ¥ 33,042,477 | ¥ 18,780,954 | ¥ 418,336,891 | ¥ 280,068,866 | ¥ 219,711,065 | ¥ 530,808,265 | |||||||||||||
Conversion of Preferred Shares into ordinary shares (in shares) | shares | 1,439,102 | 1,891,291 | 1,862,069 | 1,246,621 | 977,961 | 2,143,786 | |||||||||||||||||||||||||
Share-based compensation | 186,903,431 | 186,903,431 | |||||||||||||||||||||||||||||
Accretion of redeemable convertible preferred shares | 244,080,678 | ||||||||||||||||||||||||||||||
Unrealized gain on an available-for-sale investment, net of nil income taxes | 1,456,370 | 1,456,370 | |||||||||||||||||||||||||||||
Reclassification adjustment for gain from disposal of available-for-sale securities realized in net income, net of nil income taxes | (4,863,233) | (4,863,233) | |||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | (63,005,931) | (63,005,931) | |||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2020 | ¥ 8,572 | ¥ 3,446 | 2,188,870,625 | (107,514,737) | (1,324,173,722) | 757,194,184 | |||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | shares | 12,210,830 | 12,210,830 | 5,614,840 | 5,614,840 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||
Net loss | (309,623,944) | (309,623,944) | (48,586,753) | ||||||||||||||||||||||||||||
Share-based compensation | 15,911,144 | 15,911,144 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | (17,598,892) | (17,598,892) | $ (2,761,650) | ||||||||||||||||||||||||||||
Ordinary shares issued in connection with exercise of share options | ¥ 587 | 63,447 | ¥ 64,034 | ||||||||||||||||||||||||||||
Ordinary shares issued in connection with exercise of share options (in Shares) | shares | 907,779 | 907,779 | 907,779 | 907,779 | |||||||||||||||||||||||||||
Ordinary Shares B transferred to Ordinary Share A | ¥ 328 | ¥ (328) | |||||||||||||||||||||||||||||
Ordinary Shares B transferred to Ordinary Share A (in Shares) | shares | 500,000 | 500,000 | (500,000) | (500,000) | |||||||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | ¥ 9,487 | $ 1,489 | ¥ 3,118 | $ 489 | ¥ 2,204,845,216 | $ 345,988,328 | ¥ (125,113,629) | $ (19,633,059) | ¥ (1,633,797,666) | $ (256,378,506) | ¥ 445,946,526 | $ 69,978,741 | |||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | shares | 13,618,609 | 13,618,609 | 5,114,840 | 5,114,840 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (DEFICIT) (Parenthetical) | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Unrealized gain on an available-for-sale investment, income taxes | ¥ 0 |
Foreign currency translation adjustment, income taxes | 0 |
Reclassification adjustment for gains on available-for-sale securities realized in net income, income taxes | 0 |
IPO | |
Offering Costs | ¥ 94,128,112 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating activities: | ||||
Net loss | ¥ (309,623,944) | $ (48,586,753) | ¥ (221,852,864) | ¥ (52,929,508) |
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Allowance for doubtful accounts | 682,085 | 107,034 | 592,717 | |
Share-based compensation | 15,911,144 | 2,496,806 | 186,903,431 | |
Deferred income tax benefits | (2,167,099) | (340,065) | (2,495,332) | |
Depreciation and amortization | 14,931,572 | 2,343,089 | 5,618,984 | 2,619,682 |
Impairment of intangible assets | 2,915,000 | 457,427 | 0 | 0 |
Impairment of goodwill | 106,949,249 | 16,782,671 | ||
Changes in fair value of financial instruments | 5,247 | 9,024,437 | ||
Gain (loss) on disposal of an investment security | 50,000 | 7,846 | (4,863,233) | |
Gain on extinguishment of a convertible debt | (8,986,048) | |||
Loss (gain) on disposal of property and equipment | 432,298 | 67,837 | (35,572) | 15,765 |
Gain on disposal of a subsidiary | (917,251) | (143,937) | ||
Unrealized foreign currency exchange (gain) losses | 3,113,970 | (750,270) | ||
Changes in operating assets and liabilities, net of effect of acquisitions and disposal of a subsidiary: | ||||
Accounts receivable | (7,998,240) | (1,255,098) | (2,667,688) | 7,679,995 |
Inventories | (548,307) | (86,041) | (6,853,202) | |
Prepayments and other current assets | (41,473,243) | (6,508,057) | (6,104,334) | (4,186,913) |
Other non-current assets | (751,337) | (117,901) | (1,065,699) | (516,780) |
Accounts payable | 8,491,260 | 1,332,464 | 2,380,364 | 9,023,623 |
Amount due to a related party | (6,898,800) | |||
Deferred revenue | 4,252,823 | 667,361 | (2,814,922) | 8,787,345 |
Income tax payable | 2,988,106 | 468,899 | 1,246,030 | 930,554 |
Accrued expenses and other current liabilities | (7,325,654) | (1,149,555) | 9,182,914 | 3,952,391 |
Other non-current liabilities | 2,300,000 | 360,920 | ||
Net cash used in operating activities | (210,901,538) | (33,095,053) | (40,301,906) | (31,641,810) |
Investing activities: | ||||
Purchase of property and equipment | (7,004,705) | (1,099,191) | (7,471,486) | (5,881,767) |
Proceeds from disposal of property and equipment | 126,670 | 19,877 | 100,960 | |
Purchase of term deposits | (841,183,485) | (82,061,210) | ||
Proceeds from maturity of term deposits | 170,857,260 | 26,811,232 | 741,124,785 | 373,537,111 |
Payment for asset acquisitions | (2,550,000) | (400,151) | (3,250,000) | |
Payment for business combinations, net of cash acquired of nil,RMB10,497,237 and nil in 2019, 2020 and 2021, respectively | (24,491,600) | (3,843,266) | (203,081,831) | |
Proceeds from disposal of financial instruments | 25,023,165 | |||
Issuance of interest free loans to an employee | (1,600,000) | (251,075) | ||
Disposal of a subsidiary, net of cash received | (4,985,220) | (782,290) | ||
Net cash provided by (used in) investing activities | 130,352,405 | 20,455,136 | (288,737,892) | 285,594,134 |
Financing activities: | ||||
Proceeds from issuance of Class A Ordinary Shares, net of underwriting commissions, discounts and underwriter's lawyer fee of RMB46,589,365 | 548,765,995 | |||
Payments for initial public offering ("IPO") costs | (45,286,456) | (2,252,291) | ||
Repayment of a convertible debt | (20,000,000) | |||
Issuance of interest free loans to a shareholder | (8,000,000) | |||
Proceeds from repayment of interest free loans to a shareholder | 8,000,000 | |||
Payment made on behalf of Mr. Baoli Ma | (4,722,814) | |||
Proceeds from repayment made by Mr. Baoli Ma | 4,722,814 | |||
Proceeds from exercising of share options | 64,034 | 10,048 | ||
Net cash (used in) provided by financing activities | 64,034 | 10,048 | 503,479,539 | (22,252,291) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (9,222,065) | (1,447,143) | (32,220,775) | 2,527,206 |
Net (decrease) increase in cash and cash equivalents | (89,707,164) | (14,077,012) | 142,218,966 | 234,227,239 |
Cash and cash equivalents at the beginning of the year | 439,492,788 | 68,966,009 | 297,273,822 | 63,046,583 |
Cash and cash equivalents at the end of the year | 349,785,624 | 54,888,997 | 439,492,788 | 297,273,822 |
Supplemental cash flow information: | ||||
Interest paid | 0 | 0 | 2,695,890 | 0 |
Income taxes paid | 0 | 0 | 0 | 0 |
Non-cash investing and financing activities: | ||||
Accrual of IPO costs | 0 | 0 | 0 | 6,227,056 |
Consideration payable in connection with business combinations | 0 | 0 | 24,742,025 | 0 |
Automatic conversion of convertible redeemable preferred shares to Class A ordinary shares upon the IPO | 0 | 0 | 1,500,748,518 | 0 |
Consideration receivable in connection with disposal of a subsidiary | ¥ 300,000 | $ 47,077 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Cash acquired | ¥ 0 | ¥ 10,497,237 | ¥ 0 |
Underwriting commissions, discounts and underwriter's lawyer fee | ¥ 46,589,365 |
DESCRIPTION OF BUSINESS AND ORG
DESCRIPTION OF BUSINESS AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2021 | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | 1. DESCRIPTION OF BUSINESS AND ORGANIZATION Description of business BlueCity Holdings Limited (“the Company”), through its wholly-owned subsidiaries, consolidated variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as “the Group”), is principally engaged in mobile-based social and entertainment services which includes live streaming, advertising, membership, merchandise sales and other services. The Group’s principal operations and geographic markets are in the People’s Republic of China (“PRC”). Organization The Group operates its business in the PRC through Beijing BlueCity Culture and Media Co., Ltd. (“BlueCity Culture Media”, or the “VIE”), a limited liability company established under the laws of the PRC on September 7, 2011, and its subsidiaries. BlueCity Culture Media and its subsidiaries hold certain recognized and unrecognized revenue-generating assets in order to carry out mobile platform operations in China. The recognized revenue-generating assets include goodwill and intangible assets acquired through business combinations and purchased intangible assets. Goodwill primarily represents the expected assembled workforce and synergies from combining the acquired business. Intangible assets acquired through business combinations mainly consist of user bases, brand names and technologies. Purchased intangible assets mainly include pharmaceutical operation licenses. Unrecognized revenue-generating assets mainly consist of licenses and intellectual property. Licenses include operations licenses, such as internet information service licenses and internet culture operation licenses. Intellectual property developed by the Group mainly consists of patents, copyrights and trademarks. The equity interests of BlueCity Culture Media are legally held by Mr. Baoli Ma, founder, Chairman and Chief Executive Officer of the Group, and Mr. Changyou Ma, a family member of the founder, who act as nominee equity holders of the VIE on behalf of Beijing BlueCity Information & Technology Co., Ltd., (“BlueCity Information Technology”, or WFOE), the Company’s wholly owned subsidiary in the PRC. A series of contractual agreements, including Powers of Attorney, Exclusive Consulting and Service Agreement, Equity Interest Pledge Agreement, Exclusive Option Agreement and Spouse Consent Letter (collectively, the “VIE Agreements”), were entered among BlueCity Information Technology, BlueCity Culture Media and its nominee equity holders. Through the VIE Agreements, the nominee equity holders of the VIE have granted all their legal rights including voting rights and disposition rights of their equity interests in the VIE to WFOE. The nominee equity holders of the VIE do not participate significantly in income and loss and do not have the power to direct the activities of the VIE that most significantly impact their economic performance. Accordingly, the VIE is considered a variable interest entity. In accordance with Accounting Standards Codification (“ASC”) 810-10-25-38A, the Company, through the WFOE, has a controlling financial interest in the VIE because the WFOE has (i) the power to direct activities of the VIE that most significantly impact the economic performance of the VIE; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of the VIE that could potentially be significant to the VIE. Thus, the Company, through the WFOE, is the primary beneficiary of the VIE. Under the terms of the VIE Agreements, the WFOE has (i) the right to receive economic benefits that could potentially be significant to the VIE in the form of service fees under the Exclusive Consulting and Service Agreement; (ii) the right to receive all dividends declared by the VIE and the right to all undistributed earnings of the VIE; (iii) the obligation to absorb the substantially expected losses and the right to receive the residual benefits of the VIE through its exclusive option to acquire 100% of the equity interests in the VIE, to the extent permitted under PRC law. Accordingly, the financial statements of the VIE are consolidated in the Company’s consolidated financial statements. Under the terms of the VIE Agreements, the VIE’s nominee equity holders have no rights to the net assets nor have the obligations to fund the deficit, and such rights and obligations have been vested to the Company. All of the deficit (net liabilities) and net loss of the VIE are attributed to the Company. 1. DESCRIPTION OF BUSINESS AND ORGANIZATION (Continued) The principal terms of the VIE Agreements are further described below. 1) Powers of Attorney Pursuant to the Powers of Attorney, the equity holders of the VIE irrevocably appointed WFOE as their attorney-in-fact to exercise all equity holder rights, including, but not limited to: (1) the right to attend shareholders’ meeting of the VIE, (2) the right to vote on their behalf on all matters of the VIE requiring shareholder’s approval under the laws of China and the Articles of Association of the VIE, including but not limited to the sale or transfer or pledge or disposition of their shareholding in part or in whole, and (3) designate and appoint on behalf of such nominee equity holders the legal representative, the directors, supervisors, the chief executive officer and other senior management members of the VIE. Each Powers of Attorney agreement is irrevocable and continuously effective from the execution date. 2) Exclusive Consulting and Service Agreement WFOE and the VIE entered into an Exclusive Consulting and Service Agreement, whereby WFOE is engaged as the exclusive service provider for the provision of business support, technology and consulting services to the VIE. Unless a written consent is given by WFOE, the VIE is not allowed to engage a third party to provide such services. The VIE shall pay WFOE on a quarterly basis a service fee at an amount confirmed by WFOE. WFOE owns the exclusive intellectual property rights, whether created by WFOE or the VIE, as a result of the performance of the Exclusive Consulting and Service Agreement. The Exclusive Consulting and Service Agreement will be in effect permanent unless terminated by WFOE. 3) Equity Interest Pledge Agreement Pursuant to Equity Interest Pledge Agreement, the nominee equity holders of the VIE have pledged all of their equity interest in the VIE to guarantee the nominee equity holders’ and the VIE’s performance of their obligations under Exclusive Consulting and Service Agreement. If the VIE or the nominee equity holders breach their contractual obligations under these agreements, WFOE, as pledgee, will be entitled to certain rights regarding the pledged interests, including receiving proceeds from the auction or sale of all or part of the pledged interests of the VIE in accordance with the law. The nominee equity holders of the VIE agree that, during the term of the Equity Interest Pledge Agreement, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests without the prior written consent of WFOE. The Equity Interest Pledge Agreements remain effective until (i) the termination of the Exclusive Consulting and Services Agreement with all service fees under the Exclusive Consulting and Services Agreement have been paid and no further obligation shall be undertaken by the VIE; or (ii) the equity interests of the VIE have been transferred to WFOE or any third party designated by it. The pledge was registered with the relevant local administration for industry and commerce in November 2019 and will remain binding until the VIE and its nominee equity holders discharge all their obligations under the contractual arrangements. The registration of the equity pledge enables the WFOE to enforce the equity pledge against third parties who acquire the equity interests of the VIE in good faith. 4) Exclusive Option Agreement Pursuant to the Exclusive Option Agreement, the equity holders of the VIE have irrevocably granted WFOE or any third party designated by WFOE an exclusive option to purchase, at its discretion, to the extent permitted under PRC law, all or part of the equity interests in the VIE. The purchase price shall be the minimum price permitted under PRC law and regulations, which price may be adjusted based on the valuation of the equity interests of the assets, if required by PRC laws and regulations. The equity holders should remit to the Company any amount that is paid by the Company or its designated person(s) in connection with the purchased equity interest. Without prior written consent of WFOE, the VIE and the equity holders shall not (i) transfer or otherwise dispose of, create any pledge or encumbrance on their equity interests in the VIE, (ii) change the VIE’s registered capital, or increase or decrease the VIE’s current equity interests owners, (iii) amend the VIE’s articles of association, or (iv) dispose or make the VIE’s management to dispose any assets of the VIE, other than in the ordinary course of business. The VIE and its equity holders shall appoint those individuals recommended by WFOE as directors of the VIE. The agreement will remain effective until WFOE has exercised all of its rights under the agreement, unless otherwise terminated by WFOE immediately in its sole discretion with written notice. 1. DESCRIPTION OF BUSINESS AND ORGANIZATION (Continued) 5) Spouse Consent Letter Pursuant to the Spouse Consent Letter, the spouse of Mr. Changyou Ma, confirmed that she can perform the obligations under VIE Agreements. The spouse of Mr. Changyou Ma agreed that the equity interest in VIE held by Mr. Changyou Ma and registered in the name of Mr. Changyou Ma will be disposed of pursuant to the Powers of Attorney, Exclusive Consulting and Service Agreement, Equity Interest Pledge Agreement and Exclusive Option Agreement. In addition, in the event that the spouse of Mr. Changyou Ma obtains any equity interest in the VIE for any reason, she agreed to be bound by the VIE Agreements. The Company relies on the VIE Agreements to operate and control VIE. All of the VIE Agreements are governed by PRC laws and provide for the resolution of disputes through arbitration in China. Accordingly, these contracts would be interpreted in accordance with PRC laws and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed as in some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. In the event that the Company is unable to enforce these contractual arrangements, or if the Company suffers significant time delays or other obstacles in the process of enforcing these contractual arrangements, it would be difficult to exert effective control over VIE, and the Company’s ability to conduct its business and the results of operations and financial condition may be materially and adversely affected. In the opinion of management, based on the legal opinion obtained from the Company’s PRC legal counsel, the above contractual arrangements are legally binding and enforceable and do not violate current PRC laws and regulations. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the Company’s corporate structure and contractual arrangements are found to be in violation of any existing or future PRC laws or regulations, the relevant regulatory authorities would have broad discretion in dealing with such violations, including: ● revoking the business licenses and/or operating licenses of the Company; ● discontinuing or placing restrictions or onerous conditions on the operations; ● imposing fines, confiscating the income from WFOE or the VIE, or imposing other requirements with which the Company or the VIE may not be able to comply; ● requiring the Company to restructure the 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 exert effective control over the VIE, or imposing restrictions on the Company’s right to collect revenues; ● shutting down the Company’s servers or blocking the Company’s app/websites; ● imposing additional conditions or requirements with which the Company may not be able to comply; ● requiring the Company to restructure the operations in such a way as to compel the Company to establish a new enterprise, re-apply for the necessary licenses or relocate our businesses, staff and assets; or ● restricting or prohibiting the Company use of the proceeds of overseas offering to finance the business and operations in China. If the imposition of any of these penalties or requirement to restructure the Company’s corporate structure causes it to lose the rights to direct the activities of the VIE or the Company’s right to receive its economic benefits, the Company would no longer be able to consolidate the financial results of the VIE in its consolidated financial statements. In the opinion of management, the likelihood of deconsolidation of the VIE is remote based on current facts and circumstances. 1. DESCRIPTION OF BUSINESS AND ORGANIZATION (Continued) The equity interests of VIE are legally held by Mr. Baoli Ma and Mr. Changyou Ma as nominee equity holders on behalf of the Company. Mr. Baoli Ma holds 30.2% of the total ordinary shares and share options issued and outstanding of the Company as of December 31, 2021, assuming the vesting and exercising of all outstanding share options held by Mr. Baoli Ma as of such date. The Company cannot assure that when conflicts of interest arise, either of the nominee equity holders will act in the best interests of the Company or such conflicts will be resolved in the Company’s favor. Currently, the Company does not have any arrangements to address potential conflicts of interest between the nominee equity holders and the Company, except that the Company could exercise the purchase option under the Exclusive Option Agreement with the nominee equity holders to request them to transfer all of their equity ownership in VIE to a PRC entity or individual designated by the Company. The Company relies on the nominee equity holders, one of them is the Company’s director and owes a fiduciary duty to the Company, to comply with the terms and conditions of the contractual arrangements. Such fiduciary duty requires the director to act in good faith and in the best interests of the Company and not to use his positions for personal gains. If the Company cannot resolve any conflict of interest or dispute between the Company and the nominee equity holders of VIE, the Company would have to rely on legal proceedings, which could result in disruption of the Company’s business and subject the Company to substantial uncertainty as to the outcome of any such legal proceedings. The Company’s involvement with the VIE under the VIE Agreements affected the Company’s consolidated financial position, results of operations and cash flows as indicated below. The following consolidated assets and liabilities information of the Group’s VIE as of December 31, 2020 and 2021, and consolidated revenues, net loss and cash flow information for the years ended December 31, 2019, 2020 and 2021, have been included in the accompanying consolidated financial statements. All intercompany transactions and balances with the Company, and its wholly-owned subsidiaries have been eliminated upon consolidation. As of December 31, 2020 2021 RMB RMB Cash 42,017,215 26,835,970 Accounts receivable, net (net of allowance of nil as of December 31, 2020 and 2021, respectively) 5,588,023 10,368,064 Inventories 6,853,202 7,401,509 Prepayments and other current assets 32,496,610 48,686,054 Total current assets 86,955,050 93,291,597 Investment securities 50,000 — Property and equipment, net 4,994,809 4,509,052 Intangible assets, net 52,084,512 44,204,317 Goodwill 3,054,923 — Other non-current assets 1,749,304 2,389,069 Total non-current assets 61,933,548 51,102,438 Total assets 148,888,598 144,394,035 Accounts payable 6,817,776 11,444,579 Amounts due to inter-companies 129,873,104 98,986,401 Deferred revenue 34,541,710 35,217,012 Income tax payable 291,441 1,460,149 Accrued expenses and other current liabilities 49,315,134 27,246,274 Total current liabilities 220,839,165 174,354,415 Deferred income tax liabilities 10,954,883 9,603,096 Other non-current liabilities — 2,300,000 Total non-current liabilities 10,954,883 11,903,096 Total liabilities 231,794,048 186,257,511 1. DESCRIPTION OF BUSINESS AND ORGANIZATION (Continued) For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Revenues 42,007,427 651,069,900 974,103,315 Net (loss) income (8,856,826) (79,742,764) 31,859,163 Net cash provided by (used in) operating activities 11,267,766 20,705,405 (34,200,424) Net cash used in investing activities (2,901,588) (12,532,972) (11,745,086) Net cash provided by financing activities 2,007,447 17,510,000 30,764,265 Net increase (decrease) in cash 10,373,625 25,682,433 (15,181,245) Cash at the beginning of the year 5,961,157 16,334,782 42,017,215 Cash at the end of the year 16,334,782 42,017,215 26,835,970 In accordance with VIE Agreements, WFOE has the power to direct the activities of the VIE. Therefore, the Company considers that there are no assets in the VIE that can be used only to settle obligations of the VIE, except for paid in capital of RMB1 million as of December 31, 2020 and 2021. The creditors of the VIE do not have recourse to the general credit of WFOE. During the years presented, the Company and its wholly-owned subsidiaries provided financial support to VIE that they were not previously contractually required to provide in the form of advances. To the extent VIE requires financial support, the WFOE may, at its option and to the extent permitted under the PRC law, provide such support to VIE through loans to VIE’s nominee equity holders or entrustment loans to VIE. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries, the VIE in which the Company, through its WFOE, has a controlling financial interest, and VIE’s wholly-owned subsidiaries. All intercompany transactions and balances among the Company, its wholly-owned subsidiaries, the VIE, and the VIE’s wholly-owned subsidiaries have been eliminated upon consolidation. (c) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods. Significant accounting estimates include, but not limited to, the realization of deferred income tax assets, fair value of identifiable intangible assets in business combinations, useful lives and recoverability of property and equipment and intangible assets, impairment of goodwill, fair values of share-based compensation awards, investment securities, convertible debt, redeemable convertible preferred shares and ordinary shares. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (d) Convenience translation Translations of the consolidated financial statements from RMB into US$ as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of US$1.00= RMB6.3726, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2021, or at any other rate. The US$ convenience translation is not required under U.S. GAAP and all US$ convenience translation amounts in the accompanying consolidated financial statements are unaudited. (e) Commitments and contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash at bank and term deposits, which have original maturities of three months or less and are readily convertible to know amounts of cash. The Group’s cash and cash equivalents, excluding cash on hand, are deposited in financial institutions at below locations: As of December 31, 2020 2021 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 76,352,748 35,656,085 —Denominated in USD 89,289,111 258,690,388 Total cash and cash equivalents balances held at mainland PRC financial institutions 165,641,859 294,346,473 Financial institution in Hong Kong Special Administrative Region (“Hong Kong S.A.R.”) —Denominated in HKD 1,074,294 14,306,671 —Denominated in USD 261,797,195 15,084,574 Total cash balances held at the Hong Kong S.A.R. financial institution 262,871,489 29,391,245 Financial institutions in the United States —Denominated in USD 8,540,607 22,950,413 Total cash balances held at the United States financial institutions 8,540,607 22,950,413 Financial institution in Vietnam —Denominated in VND 6,596 6,278 Total cash balances held at the Vietnam financial institution 6,596 6,278 Financial institution in Japan —Denominated in JPY 2,415,660 3,090,453 Total cash balances held at the Japan financial institution 2,415,660 3,090,453 Total cash and cash equivalents balances held at financial institutions 439,476,211 349,784,862 (g) Term deposits Term deposits represent deposits at bank with original maturities more than three months but less than one year. The Group’s term deposits are denominated in USD and are deposited at financial institutions in the mainland of the PRC. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (h) Accounts receivable and allowance for doubtful accounts Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. The Group reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The group considers many factors in assessing the collectability of its receivables, such as the age of the amounts due, the customer’s payment history and credit-worthiness. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts have been exhausted. (i) Inventories Inventories, consisting of products available for sale, are stated at the lower of cost or net realizable value. The cost of inventory is determined using the first-in-first-out ("FIFO") method. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Inventory is written down for damaged goods and slow-moving merchandise, which is dependent upon factors such as historical and forecasted consumer demand, and any sales promotions. (j) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Office and electronic equipment 3 years Leasehold improvements Shorter of 3 years or lease term When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred, and replacements and betterments are capitalized and amortized over the remaining useful life. (k) Intangible assets, net Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they are capable of being separated or arise from contractual or other legal rights. Purchased intangible assets and intangible assets arising from acquisitions are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives are amortized over their estimated useful lives using the straight-line method as follows: Licenses 5 years User bases 3-4 years Brand names 10 years Technologies 3 years The estimated life of intangible assets subject to amortization is reassessed if circumstances occur that indicate the life has changed. (l) Impairment of property and equipment and intangible assets Property and equipment and intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the asset or asset group by comparing the carrying value of the asset or asset group to an estimate of future undiscounted cash flows expected to be generated from the use of the asset or asset group and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the asset or asset group, the Group recognizes an impairment loss based on the excess of the carrying value of the asset or asset group over the fair value of the asset or asset group. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (m) Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles-Goodwill and Other Simplifying the Test for Goodwill Impairment Goodwill is not amortized but tested annually for impairment on a qualitative or quantitative basis for the reporting unit as of December 31, or more frequently when events or circumstances indicate an impairment may exist at the reporting unit level. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, the overall financial performance of the reporting unit, and other specific information related to the operations. When performing the annual impairment test, the Group has the option of first performing a qualitative assessment to determine the existence of events and circumstances that would lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If such a conclusion is reached, the Group would then be required to perform a quantitative impairment assessment of goodwill. However, if the assessment leads to a determination that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then no further assessments are required. A quantitative assessment for the determination of impairment is made by comparing the carrying amount of the reporting unit with its fair value, which is generally calculated using the discounted cash flow method. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired. If the carrying amount of a reporting unit exceeds its fair value, the Group recognizes the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit identified. (n) Investment securities The Group’s investment securities consist of debt securities and equity securities with readily determinable fair values. Debt securities The Group accounts for debt securities as available-for-sale (“AFS”) when they are not classified as either trading or held-to-maturity. AFS securities are recorded at fair value, with unrealized gains and losses, net of related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive loss until realized. Realized gains and losses from the sale of AFS securities are determined on a specific-identification basis. An impairment loss on the AFS securities are recognized in the consolidated statement of comprehensive loss when the decline in value is determined to be other-than-temporary. No impairment loss was recognized for the years ended December 31, 2019 and 2020. Equity investments All equity investments with readily determinable fair values, other than those accounted for under equity method of accounting or those that result in consolidation of the investee, are measured at fair value with changes in the fair value recognized through net income. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (o) Value added taxes The Company’s PRC subsidiaries, VIE and VIE’s subsidiaries are subject to value added tax (“VAT”). Revenues from providing online services are generally subject to VAT at the rate of 6% and revenues from sales of merchandise are generally subject to VAT at the rate of 13% and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other current liabilities, and the excess of input VAT over output VAT is reflected in prepayments and other current assets in the consolidated balance sheets. (p) Fair value measurements Fair value represents the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. ASC 820, Fair Value Measurements and Disclosures Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, term deposits, accounts receivable, investment securities, accounts payable, and convertible debt. The Group measures investment securities and convertible debt at fair value on a recurring basis. Investment securities and convertible debt were measured at fair value using unobservable inputs and categorized in Level 3 of the fair value hierarchy. As of December 31, 2020 and 2021, the carrying amounts of other financial instruments approximated to their fair values due to the short term maturity of these instruments. The Group’s non-financial assets, such as property and equipment, would be measured at fair value only if they were determined to be impaired. (q) Revenue recognition The Group principally derives its revenues from live streaming, advertising, membership, merchandise sales and other services. The Group recognizes revenue when control of the promised service is transferred to the customers, in an amount that reflects the consideration that the Group expects to receive in exchange for those services. Live streaming service The Group operates integrated platforms, Blued, Finka LESDO 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Individual viewer can purchase virtual gifts on the Group’s platform, and simultaneously present to broadcasters during their live streaming performance to show their support for their favorite broadcasters. The Group has sole discretion in designing and establishing pricing of virtual gifts. Individual viewer purchases virtual gifts using the Group’s virtual currency which is in turn acquired through online third-party payment platforms. Virtual currency is non-refundable and does not have expiration date. It is often consumed soon after it is purchased. The Group considers live streaming service as one performance obligation to its customers. The consideration received from individual viewers varies at viewers’ discretion, as they purchase and present variable quantity or value of virtual gifts to broadcasters during a performance. The recognition of such variable consideration is constrained until the amount is known, which is when an individual viewer purchases virtual gifts and simultaneously presents them to broadcasters during their live streaming performance. Accordingly, revenue is recognized when virtual gifts are consumed as they are presented to broadcasters. Unconsumed virtual currency is recorded as deferred revenue. The Group evaluates and determines individual viewers as its customers and the Group is the principal in providing live streaming services to them, and hence reports live streaming revenues on a gross basis. Accordingly, the amounts billed to viewers are recorded as revenues and revenue sharing fee paid to broadcasters through talent agencies are recorded as cost of revenues. The Group controls the integrated live streaming services, which is evidenced by its contractual relationship with individual viewers and primary responsibility for fulfilling the promise to provide the live streaming services, including operating the self-developed live streaming platform and maintaining the operation of the platform, engaging broadcasters through talent agencies to perform on its platform, investing in and using its algorithm to optimize individual viewers’ live streaming experience, enabling individual viewers to discover the broadcasters and shows they may be interested in, developing new features in the platform, promoting activities including the general promotion of the platform and the promotion of popular broadcasters and offering the virtual items to viewers to be purchased and used in the platform. Its control is also evidenced by its sole ability to monetize the live streaming services and the level of discretion in establishing pricing. The Group also has latitude in establishing the amount of compensation that broadcasters and talent agencies receive as a percentage of revenues generated from virtual gift sales. Such percentage is subject to the achievement of broadcasters and talent agencies on the Key Performance Indicators set by the Group. Advertising The Group offers marketing services on the Group’s mobile app, primarily through banner advertisements. Marketing services allow customers to place advertisements on particular areas of the Group’s mobile app, in particular formats and over particular periods of time. The marketing services typically last from several days to one year. The Group determines that the customer simultaneously receives and consumes benefits provided by the Group’s performance as the Group performs during the term of the contract. Revenues from marketing services are recognized, net of sales incentives, if any, ratably over the service period. The Group provides sales incentives in the forms of discounts and rebates to customers based on purchase volume. Sales incentives are estimated and recorded at the time of revenue recognition based on the contracted rebate rates and estimated sales volume based on historical experience. Membership Membership revenues include subscription-based membership services and Pay-Per-Use Services. Subscription-based membership services enable individual users to enjoy additional functions and privileges over a period of time ranging from one month to one year. Pay-Per-Use services enable individual users to better promote themselves and raise their profile through advanced enhancement functions on a pay-per-service basis. The Group collects non-refundable membership service fee in advance and records it as deferred revenue. Subscription-based membership revenue is recognized on a straight-line basis over the membership period. Pay-Per-Use revenue is recognized at the point in time when control of promised service is transferred to the users. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Merchandise sales The Group generates revenues from merchandise sales to customers through the Group’s own and third-parties' platforms. The Group controls the specified good before that good is transferred to a customer, which is evidenced by the primary responsibility for fulfilling the promise to provide the specified good, including responsible for the acceptability of the specified good; having inventory risk before the specified good has been transferred to a customer; and having discretion in establishing the price for the specified good. Accordingly, the Group concludes that it is principal in merchandise sales and reports revenue from merchandise sales on a gross basis. Revenues are measured as the amount of consideration the Group expects to receive in exchange for transferring the specified good to customers. Other revenue Other revenue mainly consists of family planning service revenues, service fee from the provision of consulting service to healthcare and medical institutions and marketplace service revenues. Revenue is recognized when control of promised service is transferred to the customers in an amount of consideration to which the Group expects to be entitled to in exchange for those services. Contract balances Contract balances include accounts receivable and deferred revenue. The timing of revenue recognition and cash collections result in accounts receivable and contract liabilities (i.e. deferred revenue). The allowance for doubtful accounts reflects the Group’s best estimate of probable losses inherent in the accounts receivable balance. The activity in the allowance for doubtful accounts for the years presented is disclosed in Note 3. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Deferred revenue (a contract liability) is recognized when the Group has an obligation to transfer services to a customer for which the Group has received consideration related to the Group’s live streaming services, membership services and family planning services from the customer, or for which an amount of consideration is due from the customer. The opening balance of deferred revenue as of January 1, 2020 and 2021 was RMB32,555,402 and RMB35,226,237, respectively. During the year ended December 31, 2019, 2020 and 2021, the Group recognized revenue in the amount of RMB23,757,459, RMB32,555,402 and RMB35,226,237 which was included in the deferred revenue balance at the beginning of the year, respectively. (r) Cost of revenues Cost of revenues consists primarily of (i) revenue sharing fees paid to broadcasters, (ii) commission fees paid to mobile application stores and third party payment platforms, (iii) staff cost, rental and depreciation related to operation of its business, and (iv) other cost related to the business operation. (s) Selling and marketing expenses Selling and marketing expenses mainly consist of (i) advertising costs and promotion expenses, (ii) staff cost, rental and depreciation related to selling and marketing functions. Advertising costs, which consist primarily of online and offline advertisements, are expensed as incurred. The advertising costs were RMB60,136,876, RMB80,711,586 and RMB110,978,677 for the years ended December 31, 2019, 2020 and 2021, respectively. (t) Technology and development expenses Technology and development expenses consist primarily of payroll and related expenses for technology and development professionals and technology infrastructure costs. Technology infrastructure costs include servers, bandwidth and cloud infrastructure costs, depreciation and utilities and other expenses related to technology and development functions. Technology and development expenses are expensed as incurred. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (u) General and administrative expenses General and administrative expenses mainly consist of (i) staff cost, rental and depreciation related to general and administrative personnel, (ii) professional fees, (iii) share-based compensation for management and administrative personnel, and (iv) other corporate expenses. (v) Government grants Government grants are recognized when there are reasonable assurances that the Group will comply with the conditions attach to them and the grants will be received. Government grants for the purpose of giving immediate financial support to the Group with no future related costs or obligation are recognized as a reduction of general and administrative expenses in the Group’s consolidated statements of comprehensive loss when the grants become receivable. (w) Share-based compensation The Group periodically grants share-based awards, mainly including share options to eligible employees, directors and consultants, which are subject to service and performance conditions. All share-based awards granted to directors, employees and consultants of the Group are measured at the grant-date fair value and are recognized as compensation expense over the vesting period, and when the Group considers that it is probable that the performance condition will be achieved. The Group elected to account for forfeitures as they occur, rather than estimate expected forfeitures. Share-based compensation in relation to the share options is estimated using the Binominal Option Pricing Model. The determination of the fair value of share options is affected by the share price of the Group’s ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple, forfeiture rate and expected dividend yield. For share options granted with service conditions only, share-based compensation expenses are recorded using straight-line method during the requisite service period. For share options granted with service condition and the occurrence of an IPO as performance condition, share-based compensation expenses are recorded on a straight-line basis over the requisite service period for each separately vesting portion of the award. A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For awards not being fully vested, the Group recognizes the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original awards over the remaining requisite service period after modification. (x) Employee benefits The Company’s subsidiaries and the VIE and VIE’s subsidiaries in PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in China to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included as expenses in the accompanying consolidated statements of comprehensive loss amounted to RMB26,900,928, RMB20,354,331 and RMB55,265,678 for the years ended December 31, 2019, 2020 and 2021, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) As a result of COVID-19, the PRC government exempted or reduced certain enterprises’ contributions to basic pension insurance, unemployment insurance, and work injury insurance (“certain social insurance”). The Group’s PRC subsidiaries, VIE and VIE’s subsidiaries were exempted from contributions to certain social insurance between February 2020 and December 2020. The exemption was recognized as a reduction of cost of revenues, selling and marketing expenses, technology and development expenses and general and administrative expenses in the amount of RMB15,857,367 for the year ended December 31, 2020. (y) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, and adjusted for income and expense items which are not taxable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income tax assets and liabilities are recognized for the tax effects of temporary differences and are determined by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse. A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred income tax assets will not be realized. The effect on deferred income taxes arising from a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. The Group applies a “more likely than not” recognition threshold in the evaluation of uncertain tax positions. The Group recognizes the benefit of a tax position in its consolidated financial statements if the tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits, and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. Adjustments, if required, are recorded in the Group’s consolidated financial statements in the period in which the change that necessities the adjustments occur. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in certain circumstances, a tax appeal or litigation process. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expenses and general and administrative expenses, respectively. As of December 31, 2020 and 2021, the Group did not have any unrecognized uncertain tax positions. (z) Operating leases The Group leases premises for offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis over the lease term. (aa) Foreign currency translation and foreign currency risks The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Company and its subsidiaries incorporated at Hong Kong S.A.R. and the United States is the United States dollars (“US$”). The functional currency of the Company’s PRC subsidiaries, VIE and VIE’s subsidiaries is the RMB. Transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in a foreign currency are remeasured into the functional currency using the applicable exchange rate at the balance sheet date. The resulted exchange differences are recorded as general and administrative expenses in the consolidated statements of comprehensive loss. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The financial statements of the Company and its subsidiaries incorporated at Hong Kong S.A.R., and the United States are translated from US$ into RMB. Assets and liabilities are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than deficits generated in the current period are translated into RMB using the appropriate historical rates. Revenues, expenses, gains and losses are tran |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: As of December 31, 2020 2021 RMB RMB Accounts receivable 5,588,023 12,878,562 Allowance for doubtful accounts — — Accounts receivable, net 5,588,023 12,878,562 The movements of the allowance for doubtful accounts were as follows: For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Balance at the beginning of the year 1,857,463 — — Additions charged to bad debt expense 592,717 — 682,085 Write-off of bad debt allowance (2,450,180) — (682,085) Balance at the end of the year — — — |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories consisted of the following: As of December 31, 2020 2021 RMB RMB Merchandise 6,853,202 7,401,509 Inventories 6,853,202 7,401,509 No write-down of inventories from the carrying amount to its estimated net realizable value was made for the year ended December 31, 2019, 2020 and 2021. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 5. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets as of December 31, 2020 and 2021 consisted of the following: As of December 31, 2020 2021 RMB RMB Receivable from third party payment platforms 31,821,937 63,747,704 Prepaid expenses 14,955,773 15,239,076 Deposits and prepaid rental fees 3,373,228 4,202,244 Deferred payment platforms commission fee 2,553,825 3,126,394 Interest receivable 1,460,642 1,260,880 Deductible input VAT 1,639,485 1,012,009 Others* 2,824,526 11,188,781 Prepayments and Other Current Assets 58,629,416 99,777,088 * Others mainly include advances to suppliers and employees and other receivables. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 6. INVESTMENT SECURITIES Investment securities consisted of the following: As of December 31, 2020 2021 Available-for-sale debt securities: RMB RMB Mengmei Life Pty. Ltd (“Mengmei”)(a). — — Equity securities with readily determinable fair value: Warrant to purchase Mengmei’s interests(a). — — Others. 50,000 — 50,000 — (a) On September 7, 2018, the Group entered into an investment agreement with Mengmei to acquire 9,375,000 redeemable convertible preferred shares, which represented 8.15% equity interest of Mengmei on a fully-diluted basis, in exchange for a cash consideration of US$3 million (equivalent to RMB20,587,500). The investment was classified as AFS debt security because the investment contains substantive liquidation preference and redemption provision and is redeemable at the option of the investor. The Group recorded the investment at fair value. Unrealized gain of US$230,731 (equivalent to RMB1,591,098) and US$208,098 (equivalent to RMB1,456,370), net of nil income taxes were recorded in other comprehensive income for the years ended December 31, 2019 and 2020, respectively. 6. INVESTMENT SECURITIES (Continued) In connection with this transaction, the Group also received a warrant to purchase certain number of shares in a single transaction or a series of related transactions from Mengmei’s founders within three years from the issuance date, so as to enable the Group holding no less than 51% of all equity interests of Mengmei on a fully-diluted basis. The exercise price of the warrant was determined based on the 100% equity value of Mengmei between US$100,000,000 and US$200,000,000. The warrant is an equity security with readily determinable fair value. Losses of US$39,854 (equivalent to RMB274,829) and US$750 (equivalent to RMB5,268) were recorded in changes in fair value of financial instruments for the years ended December 31, 2019 and 2020, respectively. For initial recognition, the Group allocated the total consideration to AFS debt security and warrant based on their relative fair values. On July 28, 2020, the Group entered into a share purchase agreement with Jinxin Fertility Group Company Limited to sell 9,375,000 redeemable convertible preferred shares of Mengmei and the warrant issued by Mengmei's founders in exchange for a cash consideration of US$3,580,108 (equivalent to RMB25,023,165). Accumulated unrealized gain of US$694,897 (equivalent to RMB4,863,233) was recorded in gain on disposal of an investment security for the year ended December 31, 2020. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 7. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: As of December 31, 2020 2021 RMB RMB Office and electronic equipment 11,200,226 13,832,466 Leasehold improvements 11,040,082 13,785,017 Property and Equipment 22,240,308 27,617,483 Accumulated depreciation (10,794,760) (16,431,324) Property and Equipment, net 11,445,548 11,186,159 Depreciation expenses on property and equipment were allocated to the following expense items: As of December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues 525,956 821,401 948,069 Selling and marketing expenses 997,224 1,511,562 2,381,693 Technology and development expenses 845,318 1,176,602 2,640,921 General and administrative expenses 251,184 393,071 734,443 Total depreciation expenses 2,619,682 3,902,636 6,705,126 |
INTANGIBLE ASSET, NET
INTANGIBLE ASSET, NET | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSET, NET | |
INTANGIBLE ASSET, NET | 8. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: As of December 31, 2020 Gross Carrying Accumulated Net carrying Amount amoritization Impairment amount RMB RMB RMB RMB Licenses 4,110,860 (822,172) — 3,288,688 User bases 7,730,000 (287,232) — 7,442,768 Brand names 38,500,000 (390,833) — 38,109,167 Technologies 3,460,000 (216,111) — 3,243,889 Total intangible assets 53,800,860 (1,716,348) — 52,084,512 8. INTANGIBLE ASSETS, NET (Continued) As of December 31, 2021 Gross Carrying Accumulated Net carrying Amount amoritization Impairment amount RMB RMB RMB RMB Licenses 7,372,111 (2,198,142) — 5,173,969 User bases 7,730,000 (2,276,875) (400,000) 5,053,125 Brand names 38,500,000 (4,188,333) (1,855,000) 32,456,667 Technologies 3,460,000 (1,279,444) (660,000) 1,520,556 Total intangible assets 57,062,111 (9,942,794) (2,915,000) 44,204,317 Amortization expense on intangible assets was allocated to the following expense items: Years ended December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues — 1,429,116 6,236,802 Selling and marketing expenses — 287,232 1,989,644 Total amortization expenses — 1,716,348 8,226,446 For the year ended December 31, 2021, the Group terminated the operation of Lesdo platform. As a result, the Group recognized impairment loss of RMB2,915,000 for intangible assets acquired in Lesdo acquisition (Note 21). The Group provided no impairment for intangible assets for the years ended December 31, 2019 and 2020. Amortization expense for intangible assets is nil, RMB1,716,348 and RMB8,226,446 for the years ended December 31, 2019, 2020 and 2021, respectively. The estimated amortization expenses for the above intangible assets for future years are as follows: Amortization for Year ending December 31, Intangible Assets RMB 2022 7,726,402 2023 7,660,291 2024 6,788,693 2025 4,123,264 2026 3,640,000 Thereafter 14,256,667 Total 44,204,317 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL. | |
GOODWILL | 9. GOODWILL The change in the carrying amount of goodwill was as follows: As of December 31, 2020 2021 RMB RMB Beginning Balance of the year — 196,002,568 Additions in goodwill related to business combinations (Note 21) 196,002,568 — Impairment of goodwill — (106,949,249) Foreign currency translation adjustment — (7,301,455) Balance as of December 31, 2021 196,002,568 81,751,864 The Group has one reporting unit, which is mobile platform operations. 9. GOODWILL (Continued) As of December 31, 2021, The Group performed quantitative impairment test for goodwill using the discounted cash flow method when determining the fair value of the reporting unit. Key assumptions used to determine the estimated fair value include: (a) internal cash flows forecasts including expected revenue growth, operating margins and estimated capital needs, (b) an estimated terminal value using a terminal year long-term future growth rate determined based on the growth prospects of the reporting unit; and (c) a discount rate that reflects the weighted-average cost of capital adjusted for the relevant risk associated with the reporting unit’s operations and the uncertainty inherent in the Group’s internally developed forecasts. The Group corroborates the reasonableness of the inputs and outcomes of its discounted cash flow analysis through a market capitalization reconciliation to determine whether the implied control premium is reasonable. The Group recognized impairment loss of RMB106,949,249 for goodwill for the year ended December 31, 2021, primarily due to more intensive competition on its mobile platform operations, which brought adverse impact on the Group’s ability to generate revenues and net income from its mobile platform operations. The Group did not record impairment charges of goodwill for the years ended December 31, 2019 and 2020. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of December 31, 2020 2021 RMB RMB Accrued payroll and welfare 29,859,310 24,015,031 Technology supporting fees payable 9,856,805 20,609,458 Advertising and marketing fees payable 13,855,032 5,144,789 Other taxes payable 9,513,024 6,525,618 Rebate to advertising customers 11,896,947 4,263,036 Professional fee payable 1,350,153 3,069,892 Deposits received from suppliers 1,120,000 1,170,000 Payable for business combinations 24,742,025 — Cash collected on behalf of service providers* 10,356,117 — Other accrued expenses** 6,409,383 18,164,527 Accrued Expenses and Other Current Liabilities 118,958,796 82,962,351 * This is the cash the Group received on behalf of the service providers from the customers for the family planning services. ** Other accrued expenses mainly represent accrued office expenses and other operating costs. |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE DEBT | |
CONVERTIBLE DEBT | 11. CONVERTIBLE DEBT On March 9, 2017, the Company entered into a convertible debt agreement with ShanShui CongRong Media Investment Co., Ltd (“ShanShui CongRong”), a third party investor, to borrow a one-year loan in the amount of USD3.0 million. During the period of the loan, ShanShui CongRong was entitled to convert all of the outstanding principal of the convertible debt into 116,640 shares of Series C-2 Redeemable Convertible Preferred Shares (“Series C-2 Preferred Shares”) of the Company. The interest rate of this convertible debt is 5% simple interest per annum. However, no interest shall be accrued on the outstanding principal amount, if any portion of the principal amount is converted to the Company’s Series C-2 Preferred Shares. The conversion price is US$ 25.72 per share. On March 8, 2018, the term of maturity date of this convertible debt was extended to March 8, 2020. The Company concluded the embedded conversion option did not need to be bifurcated pursuant to ASC 815 because these terms do not permit net settlement, nor they can be readily settled net by a means outside the contract, nor they can provide for delivery of an asset that puts the holders in a position not substantially different from net settlement. The Company further determined that there was no beneficial conversion feature attributable to the convertible debt because the initial effective conversion price of the convertible debt was higher than the fair value of the Company’s Series C-2 Preferred Shares at the commitment date. The Company elected to measure the convertible debt in its entirety at fair value with changes in fair value recognized in earnings in consolidated statement of comprehensive loss. The Company adopted a scenario-weighted average method to estimate fair value of the convertible debt based on the probability of each scenario and pay-off of convertible debt under each scenario. Changes in fair value of convertible debt in the amount of RMB8,749,608 and nil for the years ended December 31, 2019 and 2020, respectively, were recognized in the consolidated statements of comprehensive loss. On November 20, 2019, the Group and ShanShui CongRong agreed to terminate the convertible debt agreement, pursuant to which the principal amount of USD3.0 million (equivalent to RMB20.0 million) was fully paid in November 2019 and the accrued interest of RMB2.7 million was paid by the end of the first quarter of 2020. The difference in the amount of USD1.3 million (equivalent to RMB9.0 million) between the settlement amount of USD3.2 million (equivalent to RMB22.7 million) and the carrying amount of USD 4.5 million (equivalent to RMB31.8 million) as at November 20, 2019 was recognized as a gain on extinguishment of a convertible debt for the year ended December 31, 2019. The Company has paid the interest in the amount of RMB2.7 million on March 9, 2020. |
MEZZANINE EQUITY
MEZZANINE EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
MEZZANINE EQUITY | |
MEZZANINE EQUITY | 12. MEZZANINE EQUITY Series A Convertible Preferred Shares On April 27, 2013, the Company entered into a share purchase agreement with an investor, pursuant to which the Company issued 1,275,000 Series A convertible preferred shares (“Series A Preferred Shares”) at US$0.38 per share for an aggregated cash consideration of US$482,253 (equivalent to RMB3,000,000). On November 4, 2014, the Company, the shareholder of the Series A Preferred Shares and a new investor entered into a share transfer agreement, pursuant to which the shareholder of Series A Preferred Shares sold 124,138 Series A Preferred Shares to the new investor, and the shares were immediately re-designated into Series A-1 redeemable convertible preferred shares (“Series A-1 Preferred Shares”). On February 8, 2018, the Company entered into a share purchase agreement with an investor pursuant to which the Company issued 288,240 Series A Preferred Shares at US$27.75 per share for an aggregated cash consideration of US$8,000,000 (equivalent to RMB50,753,200). The rights, preferences and privileges of the Series A Preferred Shares are as follows: Conversion Rights Each Series A Preferred Shares is convertible, at the option of the holder, at any time after the issuance date according to a conversion ratio, subject to adjustments for dilution, including but not limited to stock splits, stock dividends and certain other events. The conversion price of Series A Preferred Shares is the same as its original issuance price and no adjustments to conversion price have occurred. 12. MEZZANINE EQUITY (Continued) Each Series A Preferred Shares shall automatically be converted into Ordinary Shares at a 1 The “Qualified IPO” was defined as within four anniversary of the Closing Date (January 26, 2018), a firm commitment underwritten public offering of the Ordinary Shares (or securities representing Ordinary Shares) in the United States, Hong Kong S.A.R. or Mainland China (excluding the National Equities Exchange and Quotations), or other jurisdiction with a pre-offering valuation of at least US$850,000,000 and raising at least US$100,000,000 proceeds. The number of shares to be issued by the Company shall be negotiable at the time of the Qualified IPO and after the expiration of the lock-up period after the Qualified IPO in such jurisdiction and subject to the approval by the shareholders of at least ninety-two (92%) of the preferred shares (voting together as a single class and calculated on an as-converted basis). Voting Rights Each Series A Preferred Shares shall be entitled to that number of votes corresponding to the number of ordinary shares on an as-converted basis. The shareholders of Series A Preferred Shares shall vote separately as a class with respect to certain specified matters. Otherwise, the shareholders of Series A Preferred Shares, Series A-1, Series B, Series C, Series C-1, Series D redeemable convertible preferred shares, and ordinary shares shall vote together as a single class. Liquidation Preferences In the event of any liquidation, dissolution or winding up of the Company, or upon occurrence of a Liquidation Event as defined in the Sixth Amended And Restated Memorandum And Articles Of Association, either voluntary or involuntary, and after the distribution to the shareholders of Series D Preferred Shares, Series C-1 Preferred Shares, Series B Preferred Shares and Series A-1 Preferred Shares, the shareholders of Series A Preferred Shares shall be entitled to receive, on a pro rata, pari passu basis but prior to any distribution to the shareholders of the Ordinary Shares or any other class or series of shares then outstanding, an amount per Series A Preferred Shares equal to the greater of (i) one hundred and twenty percent (120%) of Series A Preferred Shares issue price, plus all declared but unpaid dividends thereon (as adjusted), and (ii) the aggregate amount that each such Series A Preferred Shares shall be entitled to receive from the total proceeds in connection with such liquidation, dissolution, winding up, or liquidation event calculated on a pro rata basis and as-converted basis. Drag-along rights In the event that the shareholders of at least ninety-two (92%) of the preferred shares (“Drag-Along Shareholders”, i.e. the preferred shares in the capital of the Company with a par value of US$0.0001 per share, including Series A Preferred Shares, Series A-1 Preferred Shares, Series B Preferred Shares, Series C Preferred Shares, Series C-1 Preferred Shares and Series D Preferred Shares), voting together as a single class and calculated on an as-converted basis, approve a transaction that qualifies as a Liquidation Event (“Drag-Along Sale”) and the valuation of the Company immediately prior to the Drag-Along Sale reaches US$2,500,000,000 or more in the contemplated Drag-Along Sale, then, upon written notice from such Drag-Along Shareholders requesting them to do so, each of the other shareholders of the Company shall (i) vote, or give its written consent with respect to, all the Equity Securities held by them in favor of such proposed Drag-Along Sale and in opposition of any proposal that could reasonably be expected to delay or impair the consummation of any such proposed Drag-Along Sale; (ii) sell, transfer, and/or exchange, as the case may be, all of its Equity Securities in such Drag-Along Sale to such purchaser on the same terms and conditions as were agreed by the Drag-Along Shareholders; (iii) refrain from exercising any dissenters’ rights or rights of appraisal under applicable law at any time with respect to or in connection with such proposed Drag-Along Sale; and (iv) take all actions reasonably necessary to consummate the proposed Drag-Along Sale, including without limitation amending the then existing Articles. If any Dragged Shareholder does not elect to vote, or give its written consent with respect to such proposed Drag-Along Sale, such Dragged Shareholder shall be obliged to purchase all the shares held by the Drag-Along Shareholders at the price. A Drag-Along Sale shall be deemed as a liquidation event. The Company classified Series A Preferred Shares as mezzanine equity instead of permanent equity on the consolidated balance sheet because of the existence of such drag-along rights. Triggering of this drag-along right results in a deemed liquidation of the Company at the option of a majority of the shareholders of preferred shares with a required distribution of the transaction proceeds in accordance with the Company’s Memorandum and Articles of Association. 12. MEZZANINE EQUITY (Continued) The Company concluded the embedded conversion option in the Series A Preferred Shares did not need to be bifurcated pursuant to ASC 815 because these terms do not permit net settlement, nor they can be readily settled net by a means outside the contract, nor they can provide for delivery of an asset that puts the holders in a position not substantially different from net settlement. The Company also determined that there was no beneficial conversion feature attributable to Series A Preferred Shares because the initial effective conversion prices of Series A Preferred Shares were higher than the fair value of the Company’s ordinary shares at the relevant commitment dates. The fair value of the Company’s ordinary shares on the commitment date was estimated by management with the assistance of an independent valuation firm. The Series A Preferred Shares were recorded initially at fair value. The Series A Preferred Shares were converted to equivalent number of Class A Ordinary Shares immediately upon the completion of the Company’s initial public offering on July 8, 2020. The Company’s Series A Preferred Shares activities for the years ended December 31, 2019 and 2020 are as follows: Amount RMB Balance as of January 1, 2019 and December 31, 2019 29,751,569 Conversion to Class A Ordinary Shares (33,042,477) Foreign currency translation adjustment 3,290,908 Balance as of December 31, 2020 — Series A-1, Series B, Series C, Series C-1 and Series D Redeemable Convertible Preferred Shares (collectively “Redeemable Convertible Preferred Shares”) On May 15, 2014, the Company entered into a share purchase agreement with an investor, pursuant to which the Company issued 2,000,000 Series A-1 Preferred Shares at US$0.88 per share for an aggregated cash consideration of US$1,764,700 (equivalent to RMB10,877,611). On October 30, 2014, the Company entered into a share purchase agreement with an investor, pursuant to which the Company issued 1,862,069 Series B redeemable convertible preferred shares (“Series B Preferred Shares”) at US$6.63 per share for an aggregated cash consideration of US$12,350,000 (equivalent to RMB75,899,395). On November 4, 2014, 124,138 Series A Preferred Shares were re-designated into Series A-1 Preferred Shares. On March 18, 2016 and April 8, 2016, the Company entered into share purchase agreement with a group of investors, pursuant to which the Company issued 1,091,391 Series C redeemable convertible preferred shares (“Series C Preferred Shares”) at US$12.88 per share for an aggregated cash consideration of US$14,061,477 (equivalent to RMB90,876,514). On May 9, 2016, the Company issued convertible promissory notes in the amount of US$1,999,983 (equivalent to RMB13,020,889) to certain investors, which were subsequently converted into 155,230 Series C Preferred Shares upon the issuance of Series C-1 redeemable convertible preferred shares (“Series C-1 Preferred Shares”) on June 27, 2016. On June 27, 2016, the Company entered into a share purchase agreement with certain investors, pursuant to which the Company issued 745,114 Series C-1 Preferred Shares at US$16.10 per share for an aggregated cash consideration of US$12,000,000 (equivalent to RMB79,650,000). On June 27, 2016, a shareholder of the Series A-1 Preferred Shares sold 232,847 Series A-1 Preferred Shares to a holder of the Series C-1 Preferred Shares, and the shares were immediately re-designated into Series C-1 Preferred Shares at issuance price of US$12.88 per share. 12. MEZZANINE EQUITY (Continued) From June 9, 2017 to November 2, 2017, the Company entered into share purchase agreements with a group of investors (“Series D Preferred Shareholders”), and pursuant to which the Company issued 1,080,901 Series D redeemable convertible preferred shares (“Series D Preferred Shares”) at US$27.75 per share for an aggregated cash consideration of US$29,999,974 (equivalent to RMB200,622,325) in 2017. The issuance costs for the above Series D Preferred Shares were US$740,313 (equivalent to RMB4,950,781). From January 26, 2018 to November 1, 2018, the Company issued 1,062,885 Series D Preferred Shares at US$27.75 per share for an aggregated cash consideration of US$29,499,990 (equivalent to RMB196,648,046) to a group of Series D Preferred Shareholders. The issuance costs for the Series D Preferred Shares issued in 2018 were US$1,045,254 (equivalent to RMB6,913,310). The rights, preferences and privileges of the Series A-1 Preferred Shares, Series B Preferred Shares, Series C Preferred Shares, Series C-1 Preferred Shares, and Series D Preferred Shares are as follows: Redemption Rights If the Company fails to complete the Qualified IPO prior to the fourth year anniversary of January 26, 2018, the shareholders of Series D Preferred Shares shall be entitled to request the Company to redeem the Series D Preferred Shares in cash out of funds legally available therefor. In addition, if any of the entities within the Group or Mr. Baoli Ma (the “Founder”) materially breaches any of the Transaction Agreements (as respectively defined in the Series D Share Purchase Agreements), the shareholders of Series D Preferred Shares shall be entitled to request the Company to redeem the Series D Preferred Shares in cash out of funds legally available therefor. Upon the completion of the redemption of the Series D Preferred Shares, shareholders of other Redeemable Convertible Preferred Shares shall also be entitled to request the Company to redeem their shares. In addition, if the Company fails to complete the Qualified IPO prior to the respective fourth year anniversaries of the respective closing dates of Series C-1 Preferred Shares, Series C Preferred Shares, and Series B Preferred Shares together with Series A-1 Preferred Shares, respective (the “Redemption Start Date”), shareholders shall be entitled to request the Company to redeem in cash out of funds legally available therefor. When any of such shareholders request to redeem their shares, shareholders with higher priority of preference shall also be entitled to request the Company to redeem in cash out of funds legally available therefor. The original Redemption Start Date was November 4, 2018 for Series B Preferred Shares together with Series A-1 Preferred Shares, April 8, 2020 for Series C Preferred Shares, June 27, 2020 for Series C-1 Preferred Shares and January 26, 2022 for Series D Preferred Shares. On November 11, 2019, Series A-1, Series B, Series C and Series C-1 Preferred shareholders entered into an amendment to the redemption rights with the Company and agreed to extend the Redemption Start Date to the earlier of the following: (1) June 30, 2021, if the Company has not completed a Qualified IPO by then, (2) official termination of the IPO process of the Company, (3) the occurrence of liquidation, winding up or dissolution of the Company or substantive change of the principal business of the Company, and (4) any Preferred Share is redeemed by the Company. The redemption preference from high priority to low priority is as follows in sequence: Series D Preferred Shares, Series C-1 Preferred Shares, Series C Preferred Shares, and Series B Preferred Shares together with Series A-1 Preferred Shares. For Series D Preferred Shares, the redemption price shall be the greater of (i) sum of the issue price plus all declared but unpaid dividends, and a compounded ten percent (10%) per annum return measured from the issuance date to actual payment date of the redemption; (ii) the fair market value as determined through an independent appraisal performed by a reputable appraisal firm mutually agreed upon by the Company and the majority shareholders of Series D Preferred Shares; provided that such valuation shall not take into account any liquidity or minority interest discounts. The redemption price shall be proportionally adjusted for share splits, share consolidations, share dividends, recapitalizations and the like. For Series C-1 Preferred Shares, Series C Preferred Shares, and Series B Preferred Shares, the redemption price shall be the greater of (i) sum of the respective issue prices plus all declared but unpaid dividends, and a compounded eight percent For Series A-1 Preferred Shares, the redemption price shall be sum of the issue price plus all declared but unpaid dividends, and a compounded eight percent (8%) per annum return measured from the issuance date to actual payment date of the redemption. 12. MEZZANINE EQUITY (Continued) The Company determines whether an amendment to the redemption rights of Series A-1, Series B, Series C and Series C-1 Preferred shareholders represents an extinguishment based on a fair value approach. If the fair value of the preferred shares immediately before and after the amendment is significantly different (by more than 10%), the amendment represents an extinguishment. The Company has determined that the amendment to the redemption rights of Series A-1, Series B, Series C and Series C-1 Preferred Shares did not represent an extinguishment, and therefore modification accounting was applied by analogy to the modification guidance contained in ASC718-20, Compensation—Stock Compensation Conversion Rights Each Redeemable Convertible Preferred Share is convertible, at the option of the shareholder, at any time after the issuance date according to a conversion ratio, subject to adjustments for dilution, including but not limited to stock splits, stock dividends and certain other events. Each Redeemable Convertible Preferred Share is convertible into a number of ordinary shares determined by dividing the applicable original issuance price by the conversion price. The conversion price of each Redeemable Convertible Preferred Share is the same as its original issuance price and no adjustments to conversion price have occurred. As of December 31, 2018, each Redeemable Convertible Preferred Share is convertible into one ordinary share. Each Redeemable Convertible Preferred Share shall automatically be converted into Ordinary Shares at a 1-to-1 initial conversion ratio immediately upon the closing of the Qualified IPO. Voting Rights Each Redeemable Convertible Preferred Share shall be entitled to that number of votes corresponding to the number of ordinary shares on an as-converted basis. The shareholders of Redeemable Convertible Preferred Shares shall vote separately as a class with respect to certain specified matters. Otherwise, the shareholders of Redeemable Convertible Preferred Shares, convertible preferred shares and ordinary shares shall vote together as a single class. Dividend Rights Each holder of Redeemable Convertible Preferred Shares shall be entitled to receive dividends at the rate of eight percent (8%) per annum of the applicable issue price. Such dividends shall be payable only when, as, and if declared by the Board of Directors and shall be non-cumulative. Dividend rights preference is as follows in sequence: Series D Preferred Shares, Series C-1 Preferred Shares, Series C Preferred Shares, Series B Preferred Shares, and Series A-1 Preferred Shares. After the preferential dividends relating to the Redeemable Convertible Preferred Shares and dividends related to the Series A Preferred Shares have been paid in full or declared and set apart in any fiscal year of the Company, any additional dividends out of funds legally available therefor may be declared in that fiscal year for the Ordinary Shares and, if such additional dividends are declared, then such additional dividends shall be declared pro rata on the Ordinary Shares and all Preferred Shares on an as-converted basis. No dividends or other distributions shall be made or declared, whether in cash, in property, or in any other shares of the Company, with respect to any other class or series of shares of the Company, unless and until the dividends of preferred shares with higher priority of preference has been paid in full. 12. MEZZANINE EQUITY (Continued) Liquidation Preferences In the event of any liquidation, dissolution or winding up of the Company, or upon occurrence of a Liquidation Event as defined in the Sixth Amended And Restated Memorandum And Articles Of Association, either voluntary or involuntary, shareholders of Series D Preferred Shares shall be entitled to receive a per share amount equal to the greater of (i) one hundred and fifty percent (150%) of the issuance price, plus all declared but unpaid dividends thereon, (ii) the sum of one hundred percent (100%) of the issuance price, plus a compounded ten percent (10%) per annum return measured from the actual payment date of purchase price to actual payment date of liquidation amount, and (iii) the aggregate amount that each such Series D Preferred Share shall be entitled to receive from the total proceeds in connection with such liquidation, dissolution, winding up, or Liquidation Event calculated on a pro rata basis and as-converted basis. In the event of any liquidation, dissolution or winding up of the Company, or upon occurrence of a Liquidation Event as defined in the Sixth Amended And Restated Memorandum And Articles Of Association, either voluntary or involuntary, shareholders of Series C-1 Preferred Shares, Series C Preferred Shares, and Series B Preferred Shares shall be entitled to receive a per share amount equal to the greater of (i) one hundred fifty percent In the event of any liquidation, dissolution or winding up of the Company, or upon occurrence of a Liquidation Event as defined in the Sixth Amended And Restated Memorandum And Articles of Association, either voluntary or involuntary, shareholders of Series A-1 Preferred Shares shall be entitled to receive a per share amount equal to the greater of (i) one hundred and twenty percent (120%) of the issuance price, plus all declared but unpaid dividends thereon, and (ii) the aggregate amount that each such preferred share shall be entitled to receive from the total proceeds in connection with such liquidation, dissolution, winding up, or Liquidation Event calculated on a pro rata basis and as-converted basis. Liquidation preference is as follows in sequence: Series D Preferred Shares, Series C-1 Preferred Shares, Series C Preferred Shares, Series B Preferred Shares, and Series A-1 Preferred Shares together with Series A Preferred Shares. Drag-along rights Drag-along rights of the Redeemable Convertible Preferred Shares are the same as the rights of Series A Preferred Shares. The Company classified the Redeemable Convertible Preferred Shares as mezzanine equity in the consolidated balance sheet as they are contingently redeemable upon the occurrence of certain events outside of the Company’s control. The Company concluded the embedded conversion and redemption option of the Redeemable Convertible Preferred Shares did not need to be bifurcated pursuant to ASC 815 because these terms do not permit net settlement, nor they can be readily settled net by a means outside the contract, nor they can provide for delivery of an asset that puts the holders in a position not substantially different from net settlement. The Company also determined that there was no beneficial conversion feature attributable to the Redeemable Convertible Preferred Shares because the initial effective conversion prices of these Redeemable Convertible Preferred Shares were higher than the fair value of the Company’s ordinary shares at the relevant commitment dates. The fair value of the Company’s ordinary shares on the commitment date was estimated by management with the assistance of an independent valuation firm. The Redeemable Convertible Preferred Shares were recorded initially at fair value, net of issuance costs. The Company recognized changes in the redemption value immediately as they occur and adjust the carrying value of the Redeemable Convertible Preferred Shares to equal the redemption value at the end of each reporting period, as if it were also the redemption date for the Redeemable Convertible Preferred Shares. The reversal of accretion in the carrying amount is only to the extent of the amount of accretion the Company previously recognized. All of the Redeemable Convertible Preferred Shares were converted to equivalent number of Class A Ordinary Shares immediately upon the completion of the Company’s initial public offering on July 8, 2020. 12. MEZZANINE EQUITY (Continued) The Company’s Redeemable Convertible Preferred Shares activities for the years ended December 31, 2019 and 2020 consist of the following: Series A-1 Series B Series C Series C-1 Series D Preferred Preferred Preferred Preferred Preferred Shares Shares Shares Shares Shares Total RMB RMB RMB RMB RMB RMB Balance as of January 1, 2019 16,359,651 239,225,246 178,003,498 150,811,043 460,765,137 1,045,164,575 Accretion and modification of redeemable convertible preferred shares 1,315,008 237,680,316 144,659,627 104,388,417 142,962,195 631,005,563 Foreign currency translation adjustment 284,668 6,706,446 4,615,264 3,698,609 9,251,062 24,556,049 Balance as of December 31, 2019 17,959,327 483,612,008 327,278,389 258,898,069 612,978,394 1,700,726,187 Accretion (reversal of accretion) of redeemable convertible preferred shares 707,682 (68,419,392) (49,340,009) (40,873,954) (86,155,005) (244,080,678) Conversion to Class A Ordinary Shares (18,780,954) (418,336,891) (280,068,866) (219,711,065) (530,808,265) (1,467,706,041) Foreign currency translation adjustment 113,945 3,144,275 2,130,486 1,686,950 3,984,876 11,060,532 Balance as of December 31, 2020 — — — — — — |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2021 | |
ORDINARY SHARES | |
ORDINARY SHARES | 13. ORDINARY SHARES Upon incorporation in 2013, the Company’s authorized ordinary shares were 500,000,000 shares with a par value of US$0.0001 per share. The number of ordinary shares issued and outstanding Immediately prior to the completion of IPO, the Company’s authorized share capital was US$500,000 divided into 5,000,000,000 shares comprising of (i) 4,600,000,000 Class A Ordinary Shares with a par value of US$0.0001 each, (ii) 200,000,000 Class B Ordinary Shares with a par value of US$0.0001 each, (iii) 200,000,000 shares with a par value of US$0.0001 each of such class or classes (however designated) as the board of directors may determine in accordance with the amended and restated memorandum of association. Immediately prior to the completion of the IPO, all outstanding preferred shares, including (i)1,439,102 shares Series Series Series Series Series ordinary shares for basis ordinary In July 2020, the Company completed its IPO of 2,650,000 newly issued Class A ordinary shares, at a public offering price of US$32.0 per share. The net proceeds after deducting underwriting commissions, discounts and underwriter's lawyer fee were approximately US$78 million (RMB549 million). In April 2021, 500,000 Class B ordinary shares was converted into 500,000 Class A ordinary shares. As of December 31, 2021, there were 13,618,609 Class A Ordinary Shares and 5,114,840 Class B ordinary shares issued outstanding Holders of Class A ordinary shares and Class B ordinary shares have the same rights except for voting and conversion rights. Each Class A ordinary share is entitled to one vote, and each Class B ordinary share is entitled to five votes and is convertible into one Class A ordinary share. Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 14. SHARE-BASED COMPENSATION On March 11, 2015, the Board of Directors of the Company approved and adopted the 2015 Stock Incentive Plan (the “2015 Plan”), under which the Company reserves 1,551,724 shares to motivate directors, employees and consultants of the Group. Stock options granted to an employee under the 2015 Plan are generally subject to a four-year service schedule, under which 25% of the option shall vest on the first anniversary of the vesting commencement date, and the remaining portion shall vest monthly over subsequent 36 months on a pro-rata basis. In addition, no options can be exercised until the Company completes an initial public offering. On June 15, 2020, the Board of Directors of the Company approved and adopted the 2020 Share Incentive Plan (the “2020 Plan”), under which the Company reserves 758,783 shares to motivate directors, employees and consultants of the Group. Stock options granted to an employee under the 2020 Plan are generally subject to a four-year service schedule, under which 25% of the option shall vest on the first anniversary of the vesting commencement date, and the remaining portion shall vest monthly over subsequent 36 months on a pro-rata basis. On August 24, 2021, the Board of Directors of the Company approved and adopted the 2021 Share Incentive Plan (the “2021 Plan”), under which the Company reserves 833,550 shares to motivate directors, employees and consultants of the Group. Stock options granted to an employee under the 2021 Plan are generally subject to a four-year service schedule, under which 25% of the option shall vest on the first anniversary of the vesting commencement date, and the remaining portion shall vest monthly over subsequent 36 months on a pro rata basis. In June 2020, the Company granted 303,513 share options to Mr. Baoli Ma, founder, Chairman and Chief Executive Officer of the Company, under the 2020 Plan. Such share options were vested and exercisable upon the completion of an IPO of the Company with exercise price of US$0.01 per share option. The Company recorded compensation expenses of RMB68,166,664 in general and administrative expenses for the year ended December 31, 2020 relating to these options. Since the exercisability of all share options granted prior to the Company’s initial public offering is dependent upon the completion of an initial public offering of the Company, no compensation expense relating to the options was recorded for the years ended December 31, 2019. Upon the completion of IPO, the Company immediately recognized share-based compensation expenses of RMB139,374,113 of share options vested cumulatively. In October 2020, the Company granted 268,487 share options to a former employee in recognition of his past service to the Company. The Company recorded compensation expenses of RMB31,082,306 in general and administrative expenses for the year ended December 31, 2020 relating to these options. The following table sets forth the stock options activity for the year ended December 31, 2021: Weighted Weighted average remaining Aggregate Number of exercise contractual intrinsic shares price years value US$ US$ Outstanding as of January 1, 2021 2,005,600 0.01 Granted 508,619 0.01 Expired (304) 0.01 Exercised (907,779) 0.01 Forfeited (234,872) 0.01 Outstanding as of December 31, 2021 1,371,264 0.01 8.24 4,182,355 Vested and expect to be vested as of December 31, 2021 1,371,264 0.01 8.24 4,182,355 Exercisable as of December 31, 2021 809,499 0.01 7.80 2,468,972 14. SHARE-BASED COMPENSATION (Continued) The fair value of the options is estimated on the dates of grant using the binomial option pricing model with the following key assumptions used: 2019 2020 2021 Risk-free rate of return (per annum) 1.78%-2.56% 0.23%-1.70% 1.61% Volatility 57.20%-60.91% 50.92%-56.70% 59.23% Expected dividend yield 0% 0% 0% Exercise multiple 2.2-2.8 2.2-2.8 2.2-2.8 Fair value of underlying ordinary share US$17.95-US$31.15 US$17.11-US$37.71 US$5.96 Expected term 10 years 10 years 10 years The expected volatility was estimated based on the historical volatility of the Company and comparable peer public companies with a time horizon close to the expected term of the Company’s options. The risk-free interest rate was estimated based on the yield to maturity of U.S. treasury bonds denominated in USD for a term consistent with the expected term of the Company’s options in effect at the option valuation date. The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. Expected dividend yield is zero as the Company has never declared or paid any cash dividends on its shares, and the Company does not anticipate any dividend payments in the foreseeable future. The weighted average grant date fair value of the share options for the years ended December 31, 2019, 2020 and 2021 were US$29.02, US$28.70 and US$16.19, respectively. Compensation costs recognized for share options for the year ended December 31, 2019, 2020 and 2021 were allocated to the following expense items: As of December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues — 11,698,603 2,140,523 Selling and marketing expenses — 16,922,885 7,678,679 Technology and product development expenses — 16,737,624 5,261,232 General and administrative expenses — 141,544,319 830,710 Total share option compensation expenses — 186,903,431 15,911,144 As of December 31, 2021, RMB40,677,525 of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted average period of 2.76 years. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 15. FAIR VALUE MEASUREMENT Assets and liabilities measured at fair value on a recurring basis The following tables present the fair value hierarchy for the asset measured at fair value on a recurring basis as of December 31, 2020: As of December 31, 2020 Total Fair RMB Level 1 Level 2 Level 3 Value Investment securities: Equity securities with readily determinable fair value — — 50,000 50,000 Total — — 50,000 50,000 No assets and liabilities were measured at fair value on a recurring basis as of December 31, 2021. 15. FAIR VALUE MEASUREMENT (Continued) The tables below reflect the reconciliation from the opening balances to the closing balances for recurring fair value measurements categorized as Level 3 of the fair value hierarchy for the years ended December 31, 2019, 2020 and 2021: For the Year Ended December 31, 2019 Gain or Losses Included in Foreign Other Currency January 1, Included in Comprehensive Translation December 31, RMB 2019 Earnings Loss Adjustment Extinguishment 2019 Investment securities: Debt securities 21,559,157 — 1,591,098 373,491 — 23,523,746 Equity securities with readily determinable fair value 328,742 (274,829) — 1,389 — 55,302 Total 21,887,899 (274,829) 1,591,098 374,880 — 23,579,048 Liabilities: Convertible debt (22,450,219) (8,749,608) — (633,141) 31,832,968 — For the Year Ended December 31, 2020 Gain or Losses Included in Foreign Other Currency January 1, Included in Comprehensive Translation December 31, RMB 2020 Earnings Loss Adjustment Disposal 2020 Investment securities: Debt securities 23,523,746 4,863,233 (3,406,863) 42,977 (25,023,093) — Equity securities with readily determinable fair value 55,302 (5,247) — 17 (72) 50,000 Total 23,579,048 4,857,986 (3,406,863) 42,994 (25,023,165) 50,000 For the Year Ended December 31, 2021 Gain or Losses Included in Foreign Other Currency January 1, Included in Comprehensive Translation December 31, RMB 2021 Earnings Loss Adjustment Disposal 2021 Investment securities: Equity securities with readily determinable fair value 50,000 — — — (50,000) — Total 50,000 — — — (50,000) — For debt securities, equity securities with readily determinable fair value and convertible debt that do not have a quoted market rate, the Company measured their fair value based on the market approach or income approach when no recent transactions are available. The market approach takes into consideration a number of factors including market multiple and discount rates from traded companies in the industry and requires the Company to make certain assumptions and estimates regarding industry factors. Specifically, some of the significant unobservable inputs included the investee’s historical earning on sale, discount of lack of marketability, investee’s time to initial public offering as well as related volatility. The income approach takes into consideration a number of factors including management projection of discounted future cash flow of the investee as well as an appropriate discount rate. The Company has classified those as level 3 measurement. The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair values. 15. FAIR VALUE MEASUREMENT (Continued) Assets measured at fair value on a nonrecurring basis The Company measured its property and equipment, intangible assets and goodwill at fair value on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. Goodwill is evaluated for impairment annually or more frequently if events or conditions were to indicate the carrying value of a reporting unit may be greater than its fair value. Impairment testing compares the carrying amount of the reporting unit with its fair value. As of December 31, 2021, The Group performed quantitative impairment test for goodwill using the discounted cash flow method when determining the fair value of the reporting unit. The fair value of goodwill is a Level 3 valuation based on certain unobservable inputs, see Note 9 for details. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
INCOME TAX | 16. INCOME TAX (a) Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong S.A.R. Under the current Hong Kong S.A.R. Inland Revenue Ordinance, the Company’s Hong Kong S.A.R. subsidiaries are subject to Hong Kong S.A.R. profits tax at the rate of 16.5% on its taxable income generated from the operations in Hong Kong S.A.R.. Payments of dividends by the Hong Kong S.A.R. subsidiaries to the Company is not subject to withholding tax in Hong Kong S.A.R.. A two-tiered profits tax rates regime was introduced in 2018 where the first HK$2 million of assessable profits earned by a company will be taxed at half of the current tax rate (8.25%) whilst the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. PRC The Group’s PRC subsidiaries, VIE and VIE’s subsidiaries are subject to the PRC Corporate Income Tax Law (“CIT Law”) at the statutory income tax rate of 25%, unless otherwise specified. According to the CIT Law, entities that qualify as “high-and-new technology enterprises” (“HNTE”) are entitled to a preferential income tax rate of 15%. In 2017, BlueCity Information Technology received the approval from the tax authority that it qualified as an HNTE. The certificate entitled BlueCity Information Technology to the preferential income tax rate of 15% effective retroactively from January 1, 2017 to December 31, 2019. In 2020, BlueCity Information Technology completed the renewal of HNTE certificate. The renewed certificate entitled BlueCity Information Technology to the preferential income tax rate of 15% effective retroactively from January 1, 2020 to December 31, 2022, if all the criteria for HNTE status could be satisfied in the relevant year. The components of loss before income taxes are as follows: For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB PRC, excluding Hong Kong S.A.R. 13,363,885 165,783,490 229,692,055 Hong Kong S.A.R. 36,302,843 38,305,342 59,079,524 Japan 258,209 7,697,439 3,446,328 Cayman 646,803 5,332,840 14,378,166 Others 1,427,214 6,175,567 2,206,865 Total 51,998,954 223,294,678 308,802,938 16. INCOME TAX (Continued) The Group’s income tax expense (benefit) recognized in the consolidated statements of comprehensive loss consists of the following: For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Current income tax expense (benefit)-PRC, excluding Hong Kong S.A.R.. 112,473 (64,615) 1,168,707 Current income tax expense-Others 818,081 1,118,133 1,819,398 Current income tax expense-total 930,554 1,053,518 2,988,105 Deferred income tax benefit-PRC, excluding Hong Kong S.A.R — (2,495,332) (2,167,099) Income tax expense (benefit) 930,554 (1,441,814) 821,006 Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2019, 2020 and 2021 are as follows: For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB PRC Statutory income tax rate (25.0) % (25.0) % (25.0) % Increase (decrease) in effective income tax rate resulting from: Tax rate differential for non-PRC entities 6.1 % 1.8 % 2.9 % Preferential tax rate 6.5 % (3.2) % 7.3 % Research and development expenses additional deduction (15.5) % (3.7) % (6.8) % Non-deductible share-based compensation expenses — 20.9 % 1.3 % Non-taxable income — (0.5) % (0.1) % Impairment of goodwill — — 8.7 % Other non-deductible expenses 0.5 % 2.4 % 2.8 % Change in valuation allowance 29.2 % 6.7 % 9.2 % Effective income tax rate 1.8 % (0.6) % 0.3 % (b) Deferred income tax assets and deferred income tax liabilities As of December 31, 2020 2021 RMB RMB Net operating loss carry forwards 72,435,457 99,347,341 Donation 457,730 480,684 Deductible advertising expenses 867,094 2,103,893 Total deferred income tax assets 73,760,281 101,931,918 Less: Valuation allowance (71,676,908) (100,483,935) Deferred income tax assets, net 2,083,373 1,447,983 Intangible assets (13,038,256) (11,051,079) Deferred income tax liabilities (13,038,256) (11,051,079) Net deferred income tax liabilities (10,954,883) (9,603,096) As of December 31, 2021, the Group had net operating loss carry forwards of RMB383,226,479 attributable to the PRC subsidiaries, consolidated VIE and VIE’s subsidiaries, of which RMB379,756, RMB 206,696, RMB1,466,535, RMB8,271,951, RMB11,009,934, RMB50,611,222, RMB49,150,819, RMB35,279,589 and RMB226,849,977 will expire if unused by December 31, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029 and 2031, respectively. 16. INCOME TAX (Continued) A valuation allowance is provided against deferred income tax assets when the Group determines that it is more likely than not that the deferred income tax assets will not be utilized in the foreseeable future. The Group evaluates the potential realization of deferred income tax assets on an entity-by-entity basis. Accordingly, the Group has provided full valuation allowance against deferred income tax assets in entities where it was determined it was more-likely-than-not that the benefits of the deferred income tax assets will not be realized as of December 31, 2021. Changes in valuation allowance are as follows: For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Balance at the beginning of the year 42,910,959 57,960,509 71,676,908 Additions of valuation allowance 14,728,024 28,879,521 46,283,222 Reductions of valuation allowance — (13,070,605) (16,639,886) Foreign exchange translation adjustments 321,526 (2,092,517) (836,309) Balance at the end of the year 57,960,509 71,676,908 100,483,935 According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. The income tax returns of the Company’s PRC subsidiaries, consolidated VIE and VIE’s subsidiaries for the years from 2017 to 2021 are open to examination by the PRC tax authorities. The Hong Kong tax authorities have up to six years to conduct examinations of the Company’s tax filings. Accordingly, the Hong Kong subsidiaries’ tax years 2016 through 2021 remain open to examination by the Hong Kong tax authorities. |
NET (LOSS ) INCOME PER SHARE
NET (LOSS ) INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
NET (LOSS ) INCOME PER SHARE | |
NET (LOSS ) INCOME PER SHARE | 17. NET (LOSS ) INCOME PER SHARE The following table sets forth the basic net (loss) income and diluted net loss per share computation and provides a reconciliation of the numerator and denominator for the years presented. Shares issuable for little consideration relating to the vested share options have been included in the number of outstanding shares used for basic (loss) income per share: For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net loss (52,929,508) (221,852,864) (309,623,944) (Accretion) reversal of accretion and modification of redeemable convertible preferred shares (631,005,563) 244,080,678 — Net income attributable to preferred shareholders — (6,706,551) — Numerator for basic net (loss) income per Class A and Class B Ordinary Share calculation (683,935,071) 15,521,263 (309,623,944) Denominator: Weighted average number of Class A and Class B Ordinary Share and ordinary share equivalents 5,614,840 11,974,046 19,352,595 Denominator for basic net (loss) income per Class A and Class B Ordinary Share calculation 5,614,840 11,974,046 19,352,595 Net (loss) income per Class A and Class B Ordinary Share —Basic (121.81) 1.30 (16.00) Numerator: Net (loss) income allocated to Class A and Class B ordinary shareholders as reported in basic net loss (income) per Class A and Class B Ordinary Share (683,935,071) 15,521,263 (309,623,944) Net income attributable to preferred shareholders — 6,706,551 — Reversal of accretion on Series B, C, C-1, and D Redeemable Convertible Preferred Shares — (244,788,360) — Numerator for diluted net loss per share calculation (683,935,071) (222,560,546) (309,623,944) Denominator: Weighted average number of Class A and Class B Ordinary Share and ordinary share equivalents 5,614,840 11,974,046 19,352,595 Effect of dilutive securities of Series B, C, C-1, and D Redeemable Convertible Preferred Shares — 3,234,380 — Denominator for diluted net loss per share calculation 5,614,840 15,208,426 19,352,595 Net loss per Class A and Class B Ordinary Share —Diluted (121.81) (14.63) (16.00) 17. NET (LOSS ) INCOME PER SHARE (Continued) The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows: As of December 31, 2019 2020 2021 Stock options 1,084,545 762,167 561,765 Preferred shares 9,560,830 — — |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS On April 12, 2018, the Board of Directors of the Company approved to repurchase 288,240 unvested share options from BlueCity Media Limited, which is controlled by Mr. Baoli Ma, founder, Chairman and Chief Executive Officer of the Company, with consideration of US$8 million. US$7 million was paid in the year of 2018, and the remaining US$1 million (equivalent to RMB6,898,800) was paid in the year of 2019. During the year ended December 31, 2019, the Group provided interest free loans in the amount of RMB8.0 million to Mr. Baoli Ma. All the loans were repaid by Mr. Baoli Ma during the year ended December 31, 2019. On April 3, 2020, the Company made a payment of RMB4,722,814 on behalf of Mr. Baoli Ma, founder, Chairman and Chief Executive Officer of the Company. All the amount was repaid by Mr. Baoli Ma on August 19, 2020. Mr. Baoli Ma, founder, Chairman and Chief Executive Officer of the Company, subscribed for, through BlueCity Media Limited, and were allocated by the underwriters, an aggregate of 312,500 American depositary shares (the “ADSs”), which represents 156,250 Class A Ordinary Shares, in the Company’s initial public offering at the initial public offering price and on the same terms as the other ADSs being offered, for consideration of US$5.0 million (equivalent to RMB35,103,500). |
REVENUE INFORMATION
REVENUE INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
REVENUE INFORMATION | |
REVENUE INFORMATION | 19. REVENUE INFORMATION Revenues consisted of the following: For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Services Live streaming 671,410,681 868,946,403 820,825,553 Advertising 35,383,571 45,452,681 53,881,336 Membership 36,738,369 71,227,203 128,809,051 Others 15,355,285 17,022,768 8,866,367 Total service revenues 758,887,906 1,002,649,055 1,012,382,307 Merchandise sales — 28,674,389 64,209,123 Total revenues 758,887,906 1,031,323,444 1,076,591,430 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Lease commitments The Group leases its offices under non-cancelable operating lease agreements. Rental expenses were RMB8,127,122, RMB12,673,230 and RMB15,403,884 for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2021, future minimum lease commitments under office non-cancelable operating lease agreements, were as follows: Offices Year ending December 31, RMB 2022 13,315,511 2023 3,718,738 2024 486,426 2025 123,072 Except for those disclosed above, the Group did not have any significant capital or other commitments, long-term obligations, or guarantees as of December 31, 2021. Litigation contingencies In April and July 2021, the Company and its certain executives and directors were named as defendants in two consolidated class action lawsuits filed in the New York Supreme Court and United States District Court, respectively. The complaints in the action allege that the Company’s registration statements contained misstatements or omissions regarding its business, operation, and compliance in violation of the U.S. securities laws. As the case remains in its early stage, the likelihood of any unfavorable outcome or any estimate of the amount or range of any potential loss cannot be reasonably estimated at the issuance of this report. As a result, the Company did not record any liabilities pertaining to this. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 21. BUSINESS COMBINATIONS Acquisition of Guangzhou Yingyoutianxia Networks Technology Co., Ltd ("Lesdo") On August 25, 2020, the Group acquired 100% equity interest of Lesdo, a leading location-based social networking service provider targeting the lesbian community in China. The consideration was RMB1,328,418, of which RMB805,418 and RMB523,000 were paid for the years ended December 31, 2020 and 2021, respectively. The identifiable assets acquired and liabilities assumed in the business combination were recorded at their fair values on the acquisition date and consisted of the following major items. Estimated useful RMB lives Cash and cash equivalents 77 Intangible assets User base 800,000 3 years Brand name 2,100,000 10 years Technology 1,080,000 3 years Total assets 3,980,077 Other current liabilities (4,711,582) Deferred income tax liabilities (995,000) Goodwill 3,054,923 Total consideration 1,328,418 21. BUSINESS COMBINATIONS (Continued) Acquisition of iRainbow Hong Kong Limited (“Finka”) and all of its subsidiaries and other entities under the control of Finka On December 1, 2020, the Group acquired 100% equity interest of Finka, which is a leading gay social networking app in China targeting younger generations. The consideration was USD35,997,984 (RMB237,227,055) in cash, of which USD32,286,199 (RMB212,773,650) and USD3,711,785 (RMB23,968,600) were paid for the years ended December 31, 2020 and 2021, respectively. The identifiable assets acquired and liabilities assumed in the business combination were recorded at their fair values on the acquisition date and consisted of the following major items. Estimated useful RMB lives Cash and cash equivalents 10,497,160 Accounts receivable 1,716,623 Other current assets 6,323,155 Intangible assets User base 6,930,000 4 years Brand name 36,400,000 10 years Technology 2,380,000 3 years Total assets 64,246,938 Accounts payable (208,984) Other current liabilities (8,331,044) Deferred income tax liabilities (11,427,500) Goodwill 192,947,645 Total consideration 237,227,055 Goodwill, which is not tax deductible, is primarily attributable to the assembled workforce and synergies expected to be achieved from the two acquisitions. The synergies mainly come from the enhancement of the Group’s position in the LGBTQ community. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 22. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION The following condensed parent company financial information of BlueCity Holdings Limited has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements. As of December 31, 2021 there were no material contingencies, significant provisions of long term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of BlueCity Holdings Limited, except for those which have been separately disclosed in the consolidated financial statements. (a) Condensed Balance Sheets As of December 31, 2020 2021 RMB RMB Assets Current assets Cash 261,878,455 15,988,107 Prepayments and other current assets 1,483,169 4,285,975 Total current assets 263,361,624 20,274,082 Non-current assets Investment in subsidiaries and consolidated VIE and VIE’s subsidiaries 517,611,994 437,336,118 Total non-current assets 517,611,994 437,336,118 Total assets 780,973,618 457,610,200 Liabilities Current liabilities Accrued expenses and other current liabilities 23,779,434 11,663,674 Total current liabilities and total liabilities 23,779,434 11,663,674 Shareholders’ equity: Class A Ordinary Shares 8,572 9,487 Class B Ordinary Shares 3,446 3,118 Additional paid-in capital 2,188,870,625 2,204,845,216 Accumulated other comprehensive loss (107,514,737) (125,113,629) Accumulated deficit (1,324,173,722) (1,633,797,666) Total shareholders’ equity 757,194,184 445,946,526 Total liabilities and shareholders’ equity 780,973,618 457,610,200 (b) Condensed Statements of Results of Operations For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Total operating expenses (883,243) (5,209,656) (14,378,165) Change in fair value of a convertible debt (8,749,608) — — Gain on extinguishment of a convertible debt 8,986,048 — — Share of losses from subsidiaries, VIE and VIE’s subsidiaries (52,282,705) (216,643,208) (295,245,779) Loss before income tax (52,929,508) (221,852,864) (309,623,944) Income tax expense — — — Net loss (52,929,508) (221,852,864) (309,623,944) 22. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Continued) (c) Condensed Statements of Cash Flows For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Net cash (used in) provided by operating activities (702,200) 1,961,394 (6,796,246) Net cash provided by (used in) investing activities 2,015,462 (252,497,206) (234,224,099) Net cash (used in) provided by financing activities (920,710) 532,995,338 64,034 Effect of foreign currency exchange rate changes on cash 76,203 (21,301,631) (4,934,037) Net (decrease) increase in cash 468,755 261,157,895 (245,890,348) Cash at the beginning of the year 251,805 720,560 261,878,455 Cash at the end of the year 720,560 261,878,455 15,988,107 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 23. SUBSEQUENT EVENTS The Company received a preliminary non-binding proposal letter, dated January 2, 2022, from Mr. Baoli Ma, founder, Chairman and Chief Executive Officer of the Group, and Spriver Tech Limited. According to the proposal letter, Mr. Baoli Ma and Spriver Tech Limited are interested in acquiring all of the Company’s outstanding ordinary shares that are not currently beneficially owned by them, including Class A ordinary shares represented by the Company’s American depositary shares or “ADSs” (each two representing one Class A ordinary share), at a price of $1.85 in cash per ADS (or approximately $3.7 in cash per ordinary share). The Company received a preliminary non-binding proposal letter, dated April 18, 2022, from Mr. Baoli Ma and Metaclass Management ELP, an affiliate of Spriver Tech Limited. The proposal letter updates the original proposal to (i) inform the Board of Directors of the Company that Metaclass Management ELP is replacing Spriver Tech Limited as Sponsor and (ii) reduce the proposed purchase price from US$3.70 per ordinary share or US$1.85 per ADS in cash to US$3.20 per ordinary share or US$1.60 per ADS in cash. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries, the VIE in which the Company, through its WFOE, has a controlling financial interest, and VIE’s wholly-owned subsidiaries. All intercompany transactions and balances among the Company, its wholly-owned subsidiaries, the VIE, and the VIE’s wholly-owned subsidiaries have been eliminated upon consolidation. |
Use of estimates | (c) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods. Significant accounting estimates include, but not limited to, the realization of deferred income tax assets, fair value of identifiable intangible assets in business combinations, useful lives and recoverability of property and equipment and intangible assets, impairment of goodwill, fair values of share-based compensation awards, investment securities, convertible debt, redeemable convertible preferred shares and ordinary shares. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Convenience translation | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (d) Convenience translation Translations of the consolidated financial statements from RMB into US$ as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of US$1.00= RMB6.3726, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2021, or at any other rate. The US$ convenience translation is not required under U.S. GAAP and all US$ convenience translation amounts in the accompanying consolidated financial statements are unaudited. |
Commitments and contingencies | (e) Commitments and contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash at bank and term deposits, which have original maturities of three months or less and are readily convertible to know amounts of cash. The Group’s cash and cash equivalents, excluding cash on hand, are deposited in financial institutions at below locations: As of December 31, 2020 2021 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 76,352,748 35,656,085 —Denominated in USD 89,289,111 258,690,388 Total cash and cash equivalents balances held at mainland PRC financial institutions 165,641,859 294,346,473 Financial institution in Hong Kong Special Administrative Region (“Hong Kong S.A.R.”) —Denominated in HKD 1,074,294 14,306,671 —Denominated in USD 261,797,195 15,084,574 Total cash balances held at the Hong Kong S.A.R. financial institution 262,871,489 29,391,245 Financial institutions in the United States —Denominated in USD 8,540,607 22,950,413 Total cash balances held at the United States financial institutions 8,540,607 22,950,413 Financial institution in Vietnam —Denominated in VND 6,596 6,278 Total cash balances held at the Vietnam financial institution 6,596 6,278 Financial institution in Japan —Denominated in JPY 2,415,660 3,090,453 Total cash balances held at the Japan financial institution 2,415,660 3,090,453 Total cash and cash equivalents balances held at financial institutions 439,476,211 349,784,862 |
Term deposits | (g) Term deposits Term deposits represent deposits at bank with original maturities more than three months but less than one year. The Group’s term deposits are denominated in USD and are deposited at financial institutions in the mainland of the PRC. |
Accounts receivable and allowance for doubtful accounts | (h) Accounts receivable and allowance for doubtful accounts Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. The Group reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The group considers many factors in assessing the collectability of its receivables, such as the age of the amounts due, the customer’s payment history and credit-worthiness. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Inventories | (i) Inventories Inventories, consisting of products available for sale, are stated at the lower of cost or net realizable value. The cost of inventory is determined using the first-in-first-out ("FIFO") method. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Inventory is written down for damaged goods and slow-moving merchandise, which is dependent upon factors such as historical and forecasted consumer demand, and any sales promotions. |
Property and equipment, net | (j) Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Office and electronic equipment 3 years Leasehold improvements Shorter of 3 years or lease term When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred, and replacements and betterments are capitalized and amortized over the remaining useful life. |
Intangible assets, net | (k) Intangible assets, net Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they are capable of being separated or arise from contractual or other legal rights. Purchased intangible assets and intangible assets arising from acquisitions are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives are amortized over their estimated useful lives using the straight-line method as follows: Licenses 5 years User bases 3-4 years Brand names 10 years Technologies 3 years The estimated life of intangible assets subject to amortization is reassessed if circumstances occur that indicate the life has changed. |
Impairment of long-lived asset | (l) Impairment of property and equipment and intangible assets Property and equipment and intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the asset or asset group by comparing the carrying value of the asset or asset group to an estimate of future undiscounted cash flows expected to be generated from the use of the asset or asset group and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the asset or asset group, the Group recognizes an impairment loss based on the excess of the carrying value of the asset or asset group over the fair value of the asset or asset group. |
Goodwill | (m) Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles-Goodwill and Other Simplifying the Test for Goodwill Impairment Goodwill is not amortized but tested annually for impairment on a qualitative or quantitative basis for the reporting unit as of December 31, or more frequently when events or circumstances indicate an impairment may exist at the reporting unit level. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, the overall financial performance of the reporting unit, and other specific information related to the operations. When performing the annual impairment test, the Group has the option of first performing a qualitative assessment to determine the existence of events and circumstances that would lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If such a conclusion is reached, the Group would then be required to perform a quantitative impairment assessment of goodwill. However, if the assessment leads to a determination that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then no further assessments are required. A quantitative assessment for the determination of impairment is made by comparing the carrying amount of the reporting unit with its fair value, which is generally calculated using the discounted cash flow method. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired. If the carrying amount of a reporting unit exceeds its fair value, the Group recognizes the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit identified. |
Investment securities | (n) Investment securities The Group’s investment securities consist of debt securities and equity securities with readily determinable fair values. Debt securities The Group accounts for debt securities as available-for-sale (“AFS”) when they are not classified as either trading or held-to-maturity. AFS securities are recorded at fair value, with unrealized gains and losses, net of related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive loss until realized. Realized gains and losses from the sale of AFS securities are determined on a specific-identification basis. An impairment loss on the AFS securities are recognized in the consolidated statement of comprehensive loss when the decline in value is determined to be other-than-temporary. No impairment loss was recognized for the years ended December 31, 2019 and 2020. Equity investments All equity investments with readily determinable fair values, other than those accounted for under equity method of accounting or those that result in consolidation of the investee, are measured at fair value with changes in the fair value recognized through net income. |
Value added taxes | (o) Value added taxes The Company’s PRC subsidiaries, VIE and VIE’s subsidiaries are subject to value added tax (“VAT”). Revenues from providing online services are generally subject to VAT at the rate of 6% and revenues from sales of merchandise are generally subject to VAT at the rate of 13% and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other current liabilities, and the excess of input VAT over output VAT is reflected in prepayments and other current assets in the consolidated balance sheets. |
Fair value measurements | (p) Fair value measurements Fair value represents the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. ASC 820, Fair Value Measurements and Disclosures Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, term deposits, accounts receivable, investment securities, accounts payable, and convertible debt. The Group measures investment securities and convertible debt at fair value on a recurring basis. Investment securities and convertible debt were measured at fair value using unobservable inputs and categorized in Level 3 of the fair value hierarchy. As of December 31, 2020 and 2021, the carrying amounts of other financial instruments approximated to their fair values due to the short term maturity of these instruments. The Group’s non-financial assets, such as property and equipment, would be measured at fair value only if they were determined to be impaired. |
Revenue recognition | (q) Revenue recognition The Group principally derives its revenues from live streaming, advertising, membership, merchandise sales and other services. The Group recognizes revenue when control of the promised service is transferred to the customers, in an amount that reflects the consideration that the Group expects to receive in exchange for those services. Live streaming service The Group operates integrated platforms, Blued, Finka LESDO 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Individual viewer can purchase virtual gifts on the Group’s platform, and simultaneously present to broadcasters during their live streaming performance to show their support for their favorite broadcasters. The Group has sole discretion in designing and establishing pricing of virtual gifts. Individual viewer purchases virtual gifts using the Group’s virtual currency which is in turn acquired through online third-party payment platforms. Virtual currency is non-refundable and does not have expiration date. It is often consumed soon after it is purchased. The Group considers live streaming service as one performance obligation to its customers. The consideration received from individual viewers varies at viewers’ discretion, as they purchase and present variable quantity or value of virtual gifts to broadcasters during a performance. The recognition of such variable consideration is constrained until the amount is known, which is when an individual viewer purchases virtual gifts and simultaneously presents them to broadcasters during their live streaming performance. Accordingly, revenue is recognized when virtual gifts are consumed as they are presented to broadcasters. Unconsumed virtual currency is recorded as deferred revenue. The Group evaluates and determines individual viewers as its customers and the Group is the principal in providing live streaming services to them, and hence reports live streaming revenues on a gross basis. Accordingly, the amounts billed to viewers are recorded as revenues and revenue sharing fee paid to broadcasters through talent agencies are recorded as cost of revenues. The Group controls the integrated live streaming services, which is evidenced by its contractual relationship with individual viewers and primary responsibility for fulfilling the promise to provide the live streaming services, including operating the self-developed live streaming platform and maintaining the operation of the platform, engaging broadcasters through talent agencies to perform on its platform, investing in and using its algorithm to optimize individual viewers’ live streaming experience, enabling individual viewers to discover the broadcasters and shows they may be interested in, developing new features in the platform, promoting activities including the general promotion of the platform and the promotion of popular broadcasters and offering the virtual items to viewers to be purchased and used in the platform. Its control is also evidenced by its sole ability to monetize the live streaming services and the level of discretion in establishing pricing. The Group also has latitude in establishing the amount of compensation that broadcasters and talent agencies receive as a percentage of revenues generated from virtual gift sales. Such percentage is subject to the achievement of broadcasters and talent agencies on the Key Performance Indicators set by the Group. Advertising The Group offers marketing services on the Group’s mobile app, primarily through banner advertisements. Marketing services allow customers to place advertisements on particular areas of the Group’s mobile app, in particular formats and over particular periods of time. The marketing services typically last from several days to one year. The Group determines that the customer simultaneously receives and consumes benefits provided by the Group’s performance as the Group performs during the term of the contract. Revenues from marketing services are recognized, net of sales incentives, if any, ratably over the service period. The Group provides sales incentives in the forms of discounts and rebates to customers based on purchase volume. Sales incentives are estimated and recorded at the time of revenue recognition based on the contracted rebate rates and estimated sales volume based on historical experience. Membership Membership revenues include subscription-based membership services and Pay-Per-Use Services. Subscription-based membership services enable individual users to enjoy additional functions and privileges over a period of time ranging from one month to one year. Pay-Per-Use services enable individual users to better promote themselves and raise their profile through advanced enhancement functions on a pay-per-service basis. The Group collects non-refundable membership service fee in advance and records it as deferred revenue. Subscription-based membership revenue is recognized on a straight-line basis over the membership period. Pay-Per-Use revenue is recognized at the point in time when control of promised service is transferred to the users. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Merchandise sales The Group generates revenues from merchandise sales to customers through the Group’s own and third-parties' platforms. The Group controls the specified good before that good is transferred to a customer, which is evidenced by the primary responsibility for fulfilling the promise to provide the specified good, including responsible for the acceptability of the specified good; having inventory risk before the specified good has been transferred to a customer; and having discretion in establishing the price for the specified good. Accordingly, the Group concludes that it is principal in merchandise sales and reports revenue from merchandise sales on a gross basis. Revenues are measured as the amount of consideration the Group expects to receive in exchange for transferring the specified good to customers. Other revenue Other revenue mainly consists of family planning service revenues, service fee from the provision of consulting service to healthcare and medical institutions and marketplace service revenues. Revenue is recognized when control of promised service is transferred to the customers in an amount of consideration to which the Group expects to be entitled to in exchange for those services. Contract balances Contract balances include accounts receivable and deferred revenue. The timing of revenue recognition and cash collections result in accounts receivable and contract liabilities (i.e. deferred revenue). The allowance for doubtful accounts reflects the Group’s best estimate of probable losses inherent in the accounts receivable balance. The activity in the allowance for doubtful accounts for the years presented is disclosed in Note 3. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Deferred revenue (a contract liability) is recognized when the Group has an obligation to transfer services to a customer for which the Group has received consideration related to the Group’s live streaming services, membership services and family planning services from the customer, or for which an amount of consideration is due from the customer. The opening balance of deferred revenue as of January 1, 2020 and 2021 was RMB32,555,402 and RMB35,226,237, respectively. During the year ended December 31, 2019, 2020 and 2021, the Group recognized revenue in the amount of RMB23,757,459, RMB32,555,402 and RMB35,226,237 which was included in the deferred revenue balance at the beginning of the year, respectively. |
Cost of revenues | (r) Cost of revenues Cost of revenues consists primarily of (i) revenue sharing fees paid to broadcasters, (ii) commission fees paid to mobile application stores and third party payment platforms, (iii) staff cost, rental and depreciation related to operation of its business, and (iv) other cost related to the business operation. |
Selling and marketing expenses | (s) Selling and marketing expenses Selling and marketing expenses mainly consist of (i) advertising costs and promotion expenses, (ii) staff cost, rental and depreciation related to selling and marketing functions. Advertising costs, which consist primarily of online and offline advertisements, are expensed as incurred. The advertising costs were RMB60,136,876, RMB80,711,586 and RMB110,978,677 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Technology and development expenses | (t) Technology and development expenses Technology and development expenses consist primarily of payroll and related expenses for technology and development professionals and technology infrastructure costs. Technology infrastructure costs include servers, bandwidth and cloud infrastructure costs, depreciation and utilities and other expenses related to technology and development functions. Technology and development expenses are expensed as incurred. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
General and administrative expenses | (u) General and administrative expenses General and administrative expenses mainly consist of (i) staff cost, rental and depreciation related to general and administrative personnel, (ii) professional fees, (iii) share-based compensation for management and administrative personnel, and (iv) other corporate expenses. |
Government grants | (v) Government grants Government grants are recognized when there are reasonable assurances that the Group will comply with the conditions attach to them and the grants will be received. Government grants for the purpose of giving immediate financial support to the Group with no future related costs or obligation are recognized as a reduction of general and administrative expenses in the Group’s consolidated statements of comprehensive loss when the grants become receivable. |
Share-based compensation | (w) Share-based compensation The Group periodically grants share-based awards, mainly including share options to eligible employees, directors and consultants, which are subject to service and performance conditions. All share-based awards granted to directors, employees and consultants of the Group are measured at the grant-date fair value and are recognized as compensation expense over the vesting period, and when the Group considers that it is probable that the performance condition will be achieved. The Group elected to account for forfeitures as they occur, rather than estimate expected forfeitures. Share-based compensation in relation to the share options is estimated using the Binominal Option Pricing Model. The determination of the fair value of share options is affected by the share price of the Group’s ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple, forfeiture rate and expected dividend yield. For share options granted with service conditions only, share-based compensation expenses are recorded using straight-line method during the requisite service period. For share options granted with service condition and the occurrence of an IPO as performance condition, share-based compensation expenses are recorded on a straight-line basis over the requisite service period for each separately vesting portion of the award. A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurs. For awards not being fully vested, the Group recognizes the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original awards over the remaining requisite service period after modification. |
Employee benefits | (x) Employee benefits The Company’s subsidiaries and the VIE and VIE’s subsidiaries in PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in China to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included as expenses in the accompanying consolidated statements of comprehensive loss amounted to RMB26,900,928, RMB20,354,331 and RMB55,265,678 for the years ended December 31, 2019, 2020 and 2021, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) As a result of COVID-19, the PRC government exempted or reduced certain enterprises’ contributions to basic pension insurance, unemployment insurance, and work injury insurance (“certain social insurance”). The Group’s PRC subsidiaries, VIE and VIE’s subsidiaries were exempted from contributions to certain social insurance between February 2020 and December 2020. The exemption was recognized as a reduction of cost of revenues, selling and marketing expenses, technology and development expenses and general and administrative expenses in the amount of RMB15,857,367 for the year ended December 31, 2020. |
Income taxes | (y) Income taxes Current income taxes are provided on the basis of net income for financial reporting purposes, and adjusted for income and expense items which are not taxable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income tax assets and liabilities are recognized for the tax effects of temporary differences and are determined by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse. A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred income tax assets will not be realized. The effect on deferred income taxes arising from a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. The Group applies a “more likely than not” recognition threshold in the evaluation of uncertain tax positions. The Group recognizes the benefit of a tax position in its consolidated financial statements if the tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits, and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. Adjustments, if required, are recorded in the Group’s consolidated financial statements in the period in which the change that necessities the adjustments occur. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in certain circumstances, a tax appeal or litigation process. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expenses and general and administrative expenses, respectively. As of December 31, 2020 and 2021, the Group did not have any unrecognized uncertain tax positions. |
Operating leases | (z) Operating leases The Group leases premises for offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis over the lease term. |
Foreign currency translation and foreign currency risks | (aa) Foreign currency translation and foreign currency risks The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Company and its subsidiaries incorporated at Hong Kong S.A.R. and the United States is the United States dollars (“US$”). The functional currency of the Company’s PRC subsidiaries, VIE and VIE’s subsidiaries is the RMB. Transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in a foreign currency are remeasured into the functional currency using the applicable exchange rate at the balance sheet date. The resulted exchange differences are recorded as general and administrative expenses in the consolidated statements of comprehensive loss. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The financial statements of the Company and its subsidiaries incorporated at Hong Kong S.A.R., and the United States are translated from US$ into RMB. Assets and liabilities are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than deficits generated in the current period are translated into RMB using the appropriate historical rates. Revenues, expenses, gains and losses are translated into RMB using the average exchange rates for the relevant period. The resulted foreign currency translation adjustments are recorded as a component of other comprehensive income or loss in the consolidated statements of comprehensive loss, and the accumulated foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss in the consolidated statements of changes in shareholders’ equity (deficit). The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the PRC government, controls the conversion of RMB to foreign currencies. The value of the RMB is subject to changes of central government policies and international economic and political developments affecting supply and demand in the China foreign exchange trading system market. |
Concentration and risk | (bb) Concentration and risk Concentration of suppliers The Group purchases all its computing, storage and bandwidth services (“cloud services”) from two suppliers for the years ended December 31, 2019, four suppliers for the year ended December 31, 2020 and five suppliers for the year ended December 31, 2021. Although there are a limited number of cloud providers of the particular cloud services, management believes that other cloud providers could provide similar services on comparable terms. A change in cloud providers, however, could cause negatively impact on the business operation and a possible loss of sales, which would affect operating results adversely. Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash and cash equivalents, term deposits and accounts receivable. The Group’s investment policy requires cash and cash equivalents and term deposits to be placed with high-quality financial institutions and to limit the amount of credit risk from any one financial institution. The Group regularly evaluates the credit standing of the counterparties or financial institutions. The Group conducts credit evaluations on its customers prior to delivery of services. The assessment of customer creditworthiness is primarily based on historical collection records, research of publicly available information and customer on-site visits by senior management. Based on this analysis, the Group determines what credit terms, if any, to offer to each customer individually. If the assessment indicates a likelihood of collection risk, the Group will not deliver the services to the customer or require the customer to pay cash, post letters of credit to secure payment or to make significant down payments. |
Statutory reserves | (cc) Statutory reserves In accordance with the PRC Company Laws, the Group’s PRC subsidiaries, VIE and VIE’s subsidiaries must make appropriations from their after-tax profits as determined under the generally accepted accounting principles in the PRC (“PRC GAAP”) to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the PRC companies. Appropriation to the discretionary surplus fund is made at the discretion of the PRC companies. The statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective companies. These reserves are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except for liquidation. For the years ended December 31, 2019, 2020 and 2021, profit appropriation to general statutory surplus fund and discretionary surplus fund for the Group’s entities incorporated in the PRC was nil, RMB139,773 and nil, respectively. |
(Loss)/earnings per share | (dd) (Loss) earnings per share Basic (loss) income per share is computed by dividing net (loss) income attributable to ordinary shareholders, considering the accretion and reversal of accretion of redemption feature related to the Group’s redeemable convertible preferred shares, by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Shares issuable for little to no consideration upon the satisfaction of certain conditions are considered as outstanding shares and included in the computation of basic (loss) income per share as of the date that all necessary conditions have been satisfied. Net losses are not allocated to other participating securities if based on their contractual terms they are not obligated to share the losses. Diluted (loss) income per share is calculated by dividing net (loss) income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of ordinary shares issuable upon the conversion of the preferred shares, using the if-converted method, and shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such share would be anti-dilutive. |
Segment reporting | (ee) Segment reporting The Group uses the management approach in determining its operating segments. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Group’s Chief Executive Officer do not segregate the Group’s business by service lines. Management has determined that the Group has one operating segment, which is the mobile platform operations. |
Business combination | (ff) Business combination The Group accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations |
Recent accounting pronouncements | (gg) Recent accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases. Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Revenue from Contracts with Customers Leases In June 2016, the FASB amended ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Financial Instruments — Credit Losses |
DESCRIPTION OF BUSINESS AND O_2
DESCRIPTION OF BUSINESS AND ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | |
Schedule of consolidated assets and liabilities information and consolidated revenues, net loss and cash flow information of the Group???s VIE | As of December 31, 2020 2021 RMB RMB Cash 42,017,215 26,835,970 Accounts receivable, net (net of allowance of nil as of December 31, 2020 and 2021, respectively) 5,588,023 10,368,064 Inventories 6,853,202 7,401,509 Prepayments and other current assets 32,496,610 48,686,054 Total current assets 86,955,050 93,291,597 Investment securities 50,000 — Property and equipment, net 4,994,809 4,509,052 Intangible assets, net 52,084,512 44,204,317 Goodwill 3,054,923 — Other non-current assets 1,749,304 2,389,069 Total non-current assets 61,933,548 51,102,438 Total assets 148,888,598 144,394,035 Accounts payable 6,817,776 11,444,579 Amounts due to inter-companies 129,873,104 98,986,401 Deferred revenue 34,541,710 35,217,012 Income tax payable 291,441 1,460,149 Accrued expenses and other current liabilities 49,315,134 27,246,274 Total current liabilities 220,839,165 174,354,415 Deferred income tax liabilities 10,954,883 9,603,096 Other non-current liabilities — 2,300,000 Total non-current liabilities 10,954,883 11,903,096 Total liabilities 231,794,048 186,257,511 1. DESCRIPTION OF BUSINESS AND ORGANIZATION (Continued) For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Revenues 42,007,427 651,069,900 974,103,315 Net (loss) income (8,856,826) (79,742,764) 31,859,163 Net cash provided by (used in) operating activities 11,267,766 20,705,405 (34,200,424) Net cash used in investing activities (2,901,588) (12,532,972) (11,745,086) Net cash provided by financing activities 2,007,447 17,510,000 30,764,265 Net increase (decrease) in cash 10,373,625 25,682,433 (15,181,245) Cash at the beginning of the year 5,961,157 16,334,782 42,017,215 Cash at the end of the year 16,334,782 42,017,215 26,835,970 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Summary of group's cash and cash equivalents, excluding cash on hand, are deposited in financial institutions at various locations | As of December 31, 2020 2021 RMB RMB Financial institutions in the mainland of the PRC —Denominated in RMB 76,352,748 35,656,085 —Denominated in USD 89,289,111 258,690,388 Total cash and cash equivalents balances held at mainland PRC financial institutions 165,641,859 294,346,473 Financial institution in Hong Kong Special Administrative Region (“Hong Kong S.A.R.”) —Denominated in HKD 1,074,294 14,306,671 —Denominated in USD 261,797,195 15,084,574 Total cash balances held at the Hong Kong S.A.R. financial institution 262,871,489 29,391,245 Financial institutions in the United States —Denominated in USD 8,540,607 22,950,413 Total cash balances held at the United States financial institutions 8,540,607 22,950,413 Financial institution in Vietnam —Denominated in VND 6,596 6,278 Total cash balances held at the Vietnam financial institution 6,596 6,278 Financial institution in Japan —Denominated in JPY 2,415,660 3,090,453 Total cash balances held at the Japan financial institution 2,415,660 3,090,453 Total cash and cash equivalents balances held at financial institutions 439,476,211 349,784,862 |
Schedule of estimated useful lives of the assets | Office and electronic equipment 3 years Leasehold improvements Shorter of 3 years or lease term |
Schedule of estimated lives of intangible assets | Licenses 5 years User bases 3-4 years Brand names 10 years Technologies 3 years |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of components of accounts receivable, net | As of December 31, 2020 2021 RMB RMB Accounts receivable 5,588,023 12,878,562 Allowance for doubtful accounts — — Accounts receivable, net 5,588,023 12,878,562 |
Schedule of movements of the allowance for doubtful accounts | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Balance at the beginning of the year 1,857,463 — — Additions charged to bad debt expense 592,717 — 682,085 Write-off of bad debt allowance (2,450,180) — (682,085) Balance at the end of the year — — — |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
Schedule of inventory | As of December 31, 2020 2021 RMB RMB Merchandise 6,853,202 7,401,509 Inventories 6,853,202 7,401,509 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of prepayments and other current assets | Prepayments and other current assets as of December 31, 2020 and 2021 consisted of the following: As of December 31, 2020 2021 RMB RMB Receivable from third party payment platforms 31,821,937 63,747,704 Prepaid expenses 14,955,773 15,239,076 Deposits and prepaid rental fees 3,373,228 4,202,244 Deferred payment platforms commission fee 2,553,825 3,126,394 Interest receivable 1,460,642 1,260,880 Deductible input VAT 1,639,485 1,012,009 Others* 2,824,526 11,188,781 Prepayments and Other Current Assets 58,629,416 99,777,088 * Others mainly include advances to suppliers and employees and other receivables. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENT SECURITIES | |
Schedule of Investment securities | Investment securities consisted of the following: As of December 31, 2020 2021 Available-for-sale debt securities: RMB RMB Mengmei Life Pty. Ltd (“Mengmei”)(a). — — Equity securities with readily determinable fair value: Warrant to purchase Mengmei’s interests(a). — — Others. 50,000 — 50,000 — (a) On September 7, 2018, the Group entered into an investment agreement with Mengmei to acquire 9,375,000 redeemable convertible preferred shares, which represented 8.15% equity interest of Mengmei on a fully-diluted basis, in exchange for a cash consideration of US$3 million (equivalent to RMB20,587,500). The investment was classified as AFS debt security because the investment contains substantive liquidation preference and redemption provision and is redeemable at the option of the investor. The Group recorded the investment at fair value. Unrealized gain of US$230,731 (equivalent to RMB1,591,098) and US$208,098 (equivalent to RMB1,456,370), net of nil income taxes were recorded in other comprehensive income for the years ended December 31, 2019 and 2020, respectively. 6. INVESTMENT SECURITIES (Continued) |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of Property and equipment, net | Property and equipment, net consisted of the following: As of December 31, 2020 2021 RMB RMB Office and electronic equipment 11,200,226 13,832,466 Leasehold improvements 11,040,082 13,785,017 Property and Equipment 22,240,308 27,617,483 Accumulated depreciation (10,794,760) (16,431,324) Property and Equipment, net 11,445,548 11,186,159 Depreciation expenses on property and equipment were allocated to the following expense items: As of December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues 525,956 821,401 948,069 Selling and marketing expenses 997,224 1,511,562 2,381,693 Technology and development expenses 845,318 1,176,602 2,640,921 General and administrative expenses 251,184 393,071 734,443 Total depreciation expenses 2,619,682 3,902,636 6,705,126 |
INTANGIBLE ASSET, NET (Tables)
INTANGIBLE ASSET, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSET, NET | |
Schedule of intangible asset, net | As of December 31, 2020 Gross Carrying Accumulated Net carrying Amount amoritization Impairment amount RMB RMB RMB RMB Licenses 4,110,860 (822,172) — 3,288,688 User bases 7,730,000 (287,232) — 7,442,768 Brand names 38,500,000 (390,833) — 38,109,167 Technologies 3,460,000 (216,111) — 3,243,889 Total intangible assets 53,800,860 (1,716,348) — 52,084,512 8. INTANGIBLE ASSETS, NET (Continued) As of December 31, 2021 Gross Carrying Accumulated Net carrying Amount amoritization Impairment amount RMB RMB RMB RMB Licenses 7,372,111 (2,198,142) — 5,173,969 User bases 7,730,000 (2,276,875) (400,000) 5,053,125 Brand names 38,500,000 (4,188,333) (1,855,000) 32,456,667 Technologies 3,460,000 (1,279,444) (660,000) 1,520,556 Total intangible assets 57,062,111 (9,942,794) (2,915,000) 44,204,317 Amortization expense on intangible assets was allocated to the following expense items: Years ended December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues — 1,429,116 6,236,802 Selling and marketing expenses — 287,232 1,989,644 Total amortization expenses — 1,716,348 8,226,446 |
Schedule of estimated amortization expenses of above intangible assets for future years | Amortization for Year ending December 31, Intangible Assets RMB 2022 7,726,402 2023 7,660,291 2024 6,788,693 2025 4,123,264 2026 3,640,000 Thereafter 14,256,667 Total 44,204,317 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL. | |
Schedule of goodwill | As of December 31, 2020 2021 RMB RMB Beginning Balance of the year — 196,002,568 Additions in goodwill related to business combinations (Note 21) 196,002,568 — Impairment of goodwill — (106,949,249) Foreign currency translation adjustment — (7,301,455) Balance as of December 31, 2021 196,002,568 81,751,864 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: As of December 31, 2020 2021 RMB RMB Accrued payroll and welfare 29,859,310 24,015,031 Technology supporting fees payable 9,856,805 20,609,458 Advertising and marketing fees payable 13,855,032 5,144,789 Other taxes payable 9,513,024 6,525,618 Rebate to advertising customers 11,896,947 4,263,036 Professional fee payable 1,350,153 3,069,892 Deposits received from suppliers 1,120,000 1,170,000 Payable for business combinations 24,742,025 — Cash collected on behalf of service providers* 10,356,117 — Other accrued expenses** 6,409,383 18,164,527 Accrued Expenses and Other Current Liabilities 118,958,796 82,962,351 * This is the cash the Group received on behalf of the service providers from the customers for the family planning services. ** Other accrued expenses mainly represent accrued office expenses and other operating costs. |
MEZZANINE EQUITY (Tables)
MEZZANINE EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Series A Convertible Preferred Shares | |
Mezzanine Equity [Line Items] | |
Schedule of Company's Preferred Shares activities | The Company’s Series A Preferred Shares activities for the years ended December 31, 2019 and 2020 are as follows: Amount RMB Balance as of January 1, 2019 and December 31, 2019 29,751,569 Conversion to Class A Ordinary Shares (33,042,477) Foreign currency translation adjustment 3,290,908 Balance as of December 31, 2020 — |
Redeemable Convertible Preferred Shares | |
Mezzanine Equity [Line Items] | |
Schedule of Company's Preferred Shares activities | 12. MEZZANINE EQUITY (Continued) The Company’s Redeemable Convertible Preferred Shares activities for the years ended December 31, 2019 and 2020 consist of the following: Series A-1 Series B Series C Series C-1 Series D Preferred Preferred Preferred Preferred Preferred Shares Shares Shares Shares Shares Total RMB RMB RMB RMB RMB RMB Balance as of January 1, 2019 16,359,651 239,225,246 178,003,498 150,811,043 460,765,137 1,045,164,575 Accretion and modification of redeemable convertible preferred shares 1,315,008 237,680,316 144,659,627 104,388,417 142,962,195 631,005,563 Foreign currency translation adjustment 284,668 6,706,446 4,615,264 3,698,609 9,251,062 24,556,049 Balance as of December 31, 2019 17,959,327 483,612,008 327,278,389 258,898,069 612,978,394 1,700,726,187 Accretion (reversal of accretion) of redeemable convertible preferred shares 707,682 (68,419,392) (49,340,009) (40,873,954) (86,155,005) (244,080,678) Conversion to Class A Ordinary Shares (18,780,954) (418,336,891) (280,068,866) (219,711,065) (530,808,265) (1,467,706,041) Foreign currency translation adjustment 113,945 3,144,275 2,130,486 1,686,950 3,984,876 11,060,532 Balance as of December 31, 2020 — — — — — — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |
Summary of stock options activity | Weighted Weighted average remaining Aggregate Number of exercise contractual intrinsic shares price years value US$ US$ Outstanding as of January 1, 2021 2,005,600 0.01 Granted 508,619 0.01 Expired (304) 0.01 Exercised (907,779) 0.01 Forfeited (234,872) 0.01 Outstanding as of December 31, 2021 1,371,264 0.01 8.24 4,182,355 Vested and expect to be vested as of December 31, 2021 1,371,264 0.01 8.24 4,182,355 Exercisable as of December 31, 2021 809,499 0.01 7.80 2,468,972 |
Summary of fair value of the options is estimated on the dates of grant using the binomial option pricing model | 2019 2020 2021 Risk-free rate of return (per annum) 1.78%-2.56% 0.23%-1.70% 1.61% Volatility 57.20%-60.91% 50.92%-56.70% 59.23% Expected dividend yield 0% 0% 0% Exercise multiple 2.2-2.8 2.2-2.8 2.2-2.8 Fair value of underlying ordinary share US$17.95-US$31.15 US$17.11-US$37.71 US$5.96 Expected term 10 years 10 years 10 years |
Schedule of compensation costs recognized for share options | Compensation costs recognized for share options for the year ended December 31, 2019, 2020 and 2021 were allocated to the following expense items: As of December 31, 2019 2020 2021 RMB RMB RMB Cost of revenues — 11,698,603 2,140,523 Selling and marketing expenses — 16,922,885 7,678,679 Technology and product development expenses — 16,737,624 5,261,232 General and administrative expenses — 141,544,319 830,710 Total share option compensation expenses — 186,903,431 15,911,144 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENT | |
Summary of fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis | As of December 31, 2020 Total Fair RMB Level 1 Level 2 Level 3 Value Investment securities: Equity securities with readily determinable fair value — — 50,000 50,000 Total — — 50,000 50,000 |
Summary of reconciliation from the opening balances to the closing balances for recurring fair value measurements categorized as Level 3 of the fair value hierarchy | For the Year Ended December 31, 2019 Gain or Losses Included in Foreign Other Currency January 1, Included in Comprehensive Translation December 31, RMB 2019 Earnings Loss Adjustment Extinguishment 2019 Investment securities: Debt securities 21,559,157 — 1,591,098 373,491 — 23,523,746 Equity securities with readily determinable fair value 328,742 (274,829) — 1,389 — 55,302 Total 21,887,899 (274,829) 1,591,098 374,880 — 23,579,048 Liabilities: Convertible debt (22,450,219) (8,749,608) — (633,141) 31,832,968 — For the Year Ended December 31, 2020 Gain or Losses Included in Foreign Other Currency January 1, Included in Comprehensive Translation December 31, RMB 2020 Earnings Loss Adjustment Disposal 2020 Investment securities: Debt securities 23,523,746 4,863,233 (3,406,863) 42,977 (25,023,093) — Equity securities with readily determinable fair value 55,302 (5,247) — 17 (72) 50,000 Total 23,579,048 4,857,986 (3,406,863) 42,994 (25,023,165) 50,000 For the Year Ended December 31, 2021 Gain or Losses Included in Foreign Other Currency January 1, Included in Comprehensive Translation December 31, RMB 2021 Earnings Loss Adjustment Disposal 2021 Investment securities: Equity securities with readily determinable fair value 50,000 — — — (50,000) — Total 50,000 — — — (50,000) — |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
Summary of components of loss before income taxes | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB PRC, excluding Hong Kong S.A.R. 13,363,885 165,783,490 229,692,055 Hong Kong S.A.R. 36,302,843 38,305,342 59,079,524 Japan 258,209 7,697,439 3,446,328 Cayman 646,803 5,332,840 14,378,166 Others 1,427,214 6,175,567 2,206,865 Total 51,998,954 223,294,678 308,802,938 |
Summary of income tax expense recognized in the consolidated statements of comprehensive loss | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Current income tax expense (benefit)-PRC, excluding Hong Kong S.A.R.. 112,473 (64,615) 1,168,707 Current income tax expense-Others 818,081 1,118,133 1,819,398 Current income tax expense-total 930,554 1,053,518 2,988,105 Deferred income tax benefit-PRC, excluding Hong Kong S.A.R — (2,495,332) (2,167,099) Income tax expense (benefit) 930,554 (1,441,814) 821,006 |
Summary of reconciliation of the differences between PRC statutory income tax rate and the Group???s effective income tax rate | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB PRC Statutory income tax rate (25.0) % (25.0) % (25.0) % Increase (decrease) in effective income tax rate resulting from: Tax rate differential for non-PRC entities 6.1 % 1.8 % 2.9 % Preferential tax rate 6.5 % (3.2) % 7.3 % Research and development expenses additional deduction (15.5) % (3.7) % (6.8) % Non-deductible share-based compensation expenses — 20.9 % 1.3 % Non-taxable income — (0.5) % (0.1) % Impairment of goodwill — — 8.7 % Other non-deductible expenses 0.5 % 2.4 % 2.8 % Change in valuation allowance 29.2 % 6.7 % 9.2 % Effective income tax rate 1.8 % (0.6) % 0.3 % |
Summary of deferred income tax assets | As of December 31, 2020 2021 RMB RMB Net operating loss carry forwards 72,435,457 99,347,341 Donation 457,730 480,684 Deductible advertising expenses 867,094 2,103,893 Total deferred income tax assets 73,760,281 101,931,918 Less: Valuation allowance (71,676,908) (100,483,935) Deferred income tax assets, net 2,083,373 1,447,983 Intangible assets (13,038,256) (11,051,079) Deferred income tax liabilities (13,038,256) (11,051,079) Net deferred income tax liabilities (10,954,883) (9,603,096) |
Summary of changes in valuation allowance | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Balance at the beginning of the year 42,910,959 57,960,509 71,676,908 Additions of valuation allowance 14,728,024 28,879,521 46,283,222 Reductions of valuation allowance — (13,070,605) (16,639,886) Foreign exchange translation adjustments 321,526 (2,092,517) (836,309) Balance at the end of the year 57,960,509 71,676,908 100,483,935 |
NET (LOSS ) INCOME PER SHARE (T
NET (LOSS ) INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
NET (LOSS ) INCOME PER SHARE | |
Schedule of basic and diluted net (loss)/income per share | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net loss (52,929,508) (221,852,864) (309,623,944) (Accretion) reversal of accretion and modification of redeemable convertible preferred shares (631,005,563) 244,080,678 — Net income attributable to preferred shareholders — (6,706,551) — Numerator for basic net (loss) income per Class A and Class B Ordinary Share calculation (683,935,071) 15,521,263 (309,623,944) Denominator: Weighted average number of Class A and Class B Ordinary Share and ordinary share equivalents 5,614,840 11,974,046 19,352,595 Denominator for basic net (loss) income per Class A and Class B Ordinary Share calculation 5,614,840 11,974,046 19,352,595 Net (loss) income per Class A and Class B Ordinary Share —Basic (121.81) 1.30 (16.00) Numerator: Net (loss) income allocated to Class A and Class B ordinary shareholders as reported in basic net loss (income) per Class A and Class B Ordinary Share (683,935,071) 15,521,263 (309,623,944) Net income attributable to preferred shareholders — 6,706,551 — Reversal of accretion on Series B, C, C-1, and D Redeemable Convertible Preferred Shares — (244,788,360) — Numerator for diluted net loss per share calculation (683,935,071) (222,560,546) (309,623,944) Denominator: Weighted average number of Class A and Class B Ordinary Share and ordinary share equivalents 5,614,840 11,974,046 19,352,595 Effect of dilutive securities of Series B, C, C-1, and D Redeemable Convertible Preferred Shares — 3,234,380 — Denominator for diluted net loss per share calculation 5,614,840 15,208,426 19,352,595 Net loss per Class A and Class B Ordinary Share —Diluted (121.81) (14.63) (16.00) |
Schedule of potentially dilutive securities | As of December 31, 2019 2020 2021 Stock options 1,084,545 762,167 561,765 Preferred shares 9,560,830 — — |
REVENUE INFORMATION (Tables)
REVENUE INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
REVENUE INFORMATION | |
Schedule of revenues | Revenues consisted of the following: For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Services Live streaming 671,410,681 868,946,403 820,825,553 Advertising 35,383,571 45,452,681 53,881,336 Membership 36,738,369 71,227,203 128,809,051 Others 15,355,285 17,022,768 8,866,367 Total service revenues 758,887,906 1,002,649,055 1,012,382,307 Merchandise sales — 28,674,389 64,209,123 Total revenues 758,887,906 1,031,323,444 1,076,591,430 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES. | |
Schedule of future minimum lease commitments under office non-cancelable operating lease agreements | As of December 31, 2021, future minimum lease commitments under office non-cancelable operating lease agreements, were as follows: Offices Year ending December 31, RMB 2022 13,315,511 2023 3,718,738 2024 486,426 2025 123,072 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lesdo | |
Business Acquisition [Line Items] | |
Schedule of purchase price allocation to assets acquired and liabilities assumed as of the date of acquisition | Estimated useful RMB lives Cash and cash equivalents 77 Intangible assets User base 800,000 3 years Brand name 2,100,000 10 years Technology 1,080,000 3 years Total assets 3,980,077 Other current liabilities (4,711,582) Deferred income tax liabilities (995,000) Goodwill 3,054,923 Total consideration 1,328,418 |
Finka | |
Business Acquisition [Line Items] | |
Schedule of purchase price allocation to assets acquired and liabilities assumed as of the date of acquisition | Estimated useful RMB lives Cash and cash equivalents 10,497,160 Accounts receivable 1,716,623 Other current assets 6,323,155 Intangible assets User base 6,930,000 4 years Brand name 36,400,000 10 years Technology 2,380,000 3 years Total assets 64,246,938 Accounts payable (208,984) Other current liabilities (8,331,044) Deferred income tax liabilities (11,427,500) Goodwill 192,947,645 Total consideration 237,227,055 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | As of December 31, 2020 2021 RMB RMB Assets Current assets Cash 261,878,455 15,988,107 Prepayments and other current assets 1,483,169 4,285,975 Total current assets 263,361,624 20,274,082 Non-current assets Investment in subsidiaries and consolidated VIE and VIE’s subsidiaries 517,611,994 437,336,118 Total non-current assets 517,611,994 437,336,118 Total assets 780,973,618 457,610,200 Liabilities Current liabilities Accrued expenses and other current liabilities 23,779,434 11,663,674 Total current liabilities and total liabilities 23,779,434 11,663,674 Shareholders’ equity: Class A Ordinary Shares 8,572 9,487 Class B Ordinary Shares 3,446 3,118 Additional paid-in capital 2,188,870,625 2,204,845,216 Accumulated other comprehensive loss (107,514,737) (125,113,629) Accumulated deficit (1,324,173,722) (1,633,797,666) Total shareholders’ equity 757,194,184 445,946,526 Total liabilities and shareholders’ equity 780,973,618 457,610,200 |
Schedule of condensed statements of results of operations | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Total operating expenses (883,243) (5,209,656) (14,378,165) Change in fair value of a convertible debt (8,749,608) — — Gain on extinguishment of a convertible debt 8,986,048 — — Share of losses from subsidiaries, VIE and VIE’s subsidiaries (52,282,705) (216,643,208) (295,245,779) Loss before income tax (52,929,508) (221,852,864) (309,623,944) Income tax expense — — — Net loss (52,929,508) (221,852,864) (309,623,944) |
Schedule of condensed statements of cash flows | For the Year Ended December 31, 2019 2020 2021 RMB RMB RMB Net cash (used in) provided by operating activities (702,200) 1,961,394 (6,796,246) Net cash provided by (used in) investing activities 2,015,462 (252,497,206) (234,224,099) Net cash (used in) provided by financing activities (920,710) 532,995,338 64,034 Effect of foreign currency exchange rate changes on cash 76,203 (21,301,631) (4,934,037) Net (decrease) increase in cash 468,755 261,157,895 (245,890,348) Cash at the beginning of the year 251,805 720,560 261,878,455 Cash at the end of the year 720,560 261,878,455 15,988,107 |
DESCRIPTION OF BUSINESS AND O_3
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details) | 12 Months Ended | |||||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Jan. 01, 2021CNY (¥) | Jan. 01, 2020CNY (¥) | Dec. 31, 2018CNY (¥) | |
Variable Interest Entity [Line Items] | ||||||||
Total ordinary shares and share options issued and outstanding of the company held by Mr. Baoli Ma (as a percent) | 30.20% | 30.20% | ||||||
Cash | ¥ 349,785,624 | ¥ 439,492,788 | $ 54,888,997 | |||||
Accounts receivable, net (net of allowance of nil as of December 31, 2020 and 2021, respectively) | 12,878,562 | 5,588,023 | 2,020,927 | |||||
Prepayments and other current assets | 99,777,088 | 58,629,416 | 15,657,202 | |||||
Inventories | 7,401,509 | 6,853,202 | 1,161,458 | |||||
Total current assets | 469,842,783 | 682,820,789 | 73,728,584 | |||||
Property and equipment, net | 11,186,159 | 11,445,548 | 1,755,352 | |||||
Intangible assets, net | 44,204,317 | 52,084,512 | 6,936,622 | |||||
Investment securities | 50,000 | |||||||
Goodwill | 81,751,864 | 196,002,568 | 12,828,651 | |||||
Other non-current assets | 3,177,465 | 2,426,128 | 498,614 | |||||
Total non-current assets | 140,319,805 | 262,008,756 | 22,019,239 | |||||
Total assets | 610,162,588 | 944,829,545 | 95,747,823 | |||||
Accounts payable | 28,507,188 | 20,372,680 | 4,473,400 | |||||
Deferred revenue | 35,796,254 | 35,226,237 | 5,617,213 | ¥ 35,226,237 | ¥ 32,555,402 | |||
Income tax payable | 5,047,173 | 2,122,765 | 792,012 | |||||
Accrued expenses and other current liabilities | 82,962,351 | 118,958,796 | 13,018,602 | |||||
Total current liabilities | 152,312,966 | 176,680,478 | 23,901,227 | |||||
Deferred income tax liabilities | 9,603,096 | 10,954,883 | 1,506,935 | |||||
Other non-current liabilities | 2,300,000 | 360,920 | ||||||
Total non-current liabilities | 11,903,096 | 10,954,883 | 1,867,855 | |||||
Total liabilities | 164,216,062 | 187,635,361 | $ 25,769,082 | |||||
Accounts receivable, allowance | 0 | 0 | ¥ 1,857,463 | |||||
Revenues | 1,076,591,430 | $ 168,940,688 | 1,031,323,444 | ¥ 758,887,906 | ||||
Net (loss) income | (309,623,944) | (48,586,753) | (221,852,864) | (52,929,508) | ||||
Net cash provided by operating activities | (210,901,538) | (33,095,053) | (40,301,906) | (31,641,810) | ||||
Net cash used in investing activities | 130,352,405 | 20,455,136 | (288,737,892) | 285,594,134 | ||||
Net cash provided by (used in) financing activities | 64,034 | 10,048 | 503,479,539 | (22,252,291) | ||||
Net increase (decrease) in cash | (89,707,164) | (14,077,012) | 142,218,966 | 234,227,239 | ||||
Cash and cash equivalents at the beginning of the year | 439,492,788 | 68,966,009 | 297,273,822 | 63,046,583 | ||||
Cash and cash equivalents at the end of the year | 349,785,624 | $ 54,888,997 | 439,492,788 | 297,273,822 | ||||
VIE | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Cash | 26,835,970 | 42,017,215 | ||||||
Accounts receivable, net (net of allowance of nil as of December 31, 2020 and 2021, respectively) | 10,368,064 | 5,588,023 | ||||||
Prepayments and other current assets | 48,686,054 | 32,496,610 | ||||||
Inventories | 7,401,509 | 6,853,202 | ||||||
Total current assets | 93,291,597 | 86,955,050 | ||||||
Property and equipment, net | 4,509,052 | 4,994,809 | ||||||
Intangible assets, net | 44,204,317 | 52,084,512 | ||||||
Investment securities | 50,000 | |||||||
Goodwill | 3,054,923 | |||||||
Other non-current assets | 2,389,069 | 1,749,304 | ||||||
Total non-current assets | 51,102,438 | 61,933,548 | ||||||
Total assets | 144,394,035 | 148,888,598 | ||||||
Accounts payable | 11,444,579 | 6,817,776 | ||||||
Amounts due to inter-companies | 98,986,401 | 129,873,104 | ||||||
Deferred revenue | 35,217,012 | 34,541,710 | ||||||
Income tax payable | 1,460,149 | 291,441 | ||||||
Accrued expenses and other current liabilities | 27,246,274 | 49,315,134 | ||||||
Total current liabilities | 174,354,415 | 220,839,165 | ||||||
Deferred income tax liabilities | 9,603,096 | 10,954,883 | ||||||
Other non-current liabilities | 2,300,000 | |||||||
Total non-current liabilities | 11,903,096 | 10,954,883 | ||||||
Total liabilities | 186,257,511 | 231,794,048 | ||||||
Accounts receivable, allowance | 0 | 0 | ||||||
Revenues | 974,103,315 | 651,069,900 | 42,007,427 | |||||
Net (loss) income | 31,859,163 | (79,742,764) | (8,856,826) | |||||
Net cash provided by operating activities | (34,200,424) | 20,705,405 | 11,267,766 | |||||
Net cash used in investing activities | (11,745,086) | (12,532,972) | (2,901,588) | |||||
Net cash provided by (used in) financing activities | 30,764,265 | 17,510,000 | 2,007,447 | |||||
Net increase (decrease) in cash | (15,181,245) | 25,682,433 | 10,373,625 | |||||
Cash and cash equivalents at the beginning of the year | 42,017,215 | 16,334,782 | 5,961,157 | |||||
Cash and cash equivalents at the end of the year | 26,835,970 | 42,017,215 | ¥ 16,334,782 | |||||
Paid in capital amount for which the assets of VIE can be used | 1,000,000 | 1,000,000 | ||||||
VIE | Asset Pledged as Collateral [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Total assets | ¥ 0 | ¥ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Details) | 12 Months Ended | ||||||
Dec. 31, 2021CNY (¥)segment$ / ¥ | Dec. 31, 2021USD ($)segment | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($)$ / ¥ | Jan. 01, 2021CNY (¥) | Jan. 01, 2020CNY (¥) | |
Significant Accounting Policies [Line Items] | |||||||
Foreign exchange rate | $ / ¥ | 6.3726 | 6.3726 | |||||
Impairment loss on debt securities | ¥ 0 | ¥ 0 | |||||
Deferred revenue | ¥ 35,796,254 | 35,226,237 | $ 5,617,213 | ¥ 35,226,237 | ¥ 32,555,402 | ||
Deferred revenue, revenue recognized | 35,226,237 | 32,555,402 | 23,757,459 | ||||
Advertising costs | 110,978,677 | 80,711,586 | 60,136,876 | ||||
Employee social benefits | ¥ 55,265,678 | ¥ 20,354,331 | ¥ 26,900,928 | ||||
Concentration of suppliers, number of suppliers | 5 | 5 | 4 | 2 | |||
Appropriation made to the statutory surplus fund and discretionary surplus fund | ¥ 0 | ¥ 139,773 | ¥ 0 | ||||
Number of operating segment | segment | 1 | 1 | |||||
Exemption of Social security insurance, Covid-19 | 15,857,367 | ||||||
Unrecognized uncertain tax positions | ¥ 0 | 0 | |||||
Accumulated deficit | 1,633,797,666 | 1,324,173,722 | $ 256,378,506 | ||||
Net cash used in operating activities | 210,901,538 | $ 33,095,053 | 40,301,906 | 31,641,810 | |||
Stock Issued During Period, Value, New Issues | 501,227,248 | ||||||
VIE | |||||||
Significant Accounting Policies [Line Items] | |||||||
Deferred revenue | 35,217,012 | 34,541,710 | |||||
Net cash used in operating activities | ¥ 34,200,424 | ¥ (20,705,405) | ¥ (11,267,766) | ||||
Advertising | Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Service period | 1 year | 1 year | |||||
Subscription-based membership services | Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Period over which additional functions and privileges can be enjoyed by individual users | 1 month | 1 month | |||||
Subscription-based membership services | Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Period over which additional functions and privileges can be enjoyed by individual users | 1 year | 1 year | |||||
Online Services | |||||||
Significant Accounting Policies [Line Items] | |||||||
Value added tax rate (as a percent) | 6.00% | 6.00% | |||||
Merchandise | |||||||
Significant Accounting Policies [Line Items] | |||||||
Value added tax rate (as a percent) | 13.00% | 13.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and cash equivalents (Details) - CNY (¥) | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | ¥ 349,784,862 | ¥ 439,476,211 |
Mainland PRC | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 294,346,473 | 165,641,859 |
Hong Kong S.A.R. | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 29,391,245 | 262,871,489 |
United States | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 22,950,413 | 8,540,607 |
Vietnam | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 6,278 | 6,596 |
Japan | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 3,090,453 | 2,415,660 |
Denominated in RMB | Mainland PRC | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 35,656,085 | 76,352,748 |
Denominated in USD | Mainland PRC | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 258,690,388 | 89,289,111 |
Denominated in USD | Hong Kong S.A.R. | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 15,084,574 | 261,797,195 |
Denominated in USD | United States | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 22,950,413 | 8,540,607 |
Denominated in HKD | Hong Kong S.A.R. | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 14,306,671 | 1,074,294 |
Denominated in VND | Vietnam | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | 6,278 | 6,596 |
Denominated in JPY | Japan | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents balances held at financial institutions | ¥ 3,090,453 | ¥ 2,415,660 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated useful life of assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Office and electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets, net (Details) | 12 Months Ended |
Dec. 31, 2021 | |
License | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
Brand name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Minimum | User base | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Maximum | User base | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 4 years |
ACCOUNTS RECEIVABLE, NET - Comp
ACCOUNTS RECEIVABLE, NET - Components (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2018CNY (¥) |
ACCOUNTS RECEIVABLE, NET | ||||
Accounts receivable | ¥ 12,878,562 | ¥ 5,588,023 | ||
Allowance for doubtful accounts | 0 | 0 | ¥ (1,857,463) | |
Accounts receivable, net | ¥ 12,878,562 | $ 2,020,927 | ¥ 5,588,023 |
ACCOUNTS RECEIVABLE, NET - Move
ACCOUNTS RECEIVABLE, NET - Movements of allowance for doubtful accounts (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2019CNY (¥) | |
Movements of allowance for doubtful accounts | |||
Balance at the beginning of the year | ¥ 0 | ¥ 1,857,463 | |
Additions charged to bad debt expense | 682,085 | $ 107,034 | 592,717 |
Write-off of bad debt allowance | (682,085) | ¥ (2,450,180) | |
Balance at the end of the year | ¥ 0 |
INVENTORIES - Inventories (Deta
INVENTORIES - Inventories (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
INVENTORIES | |||
Merchandise | ¥ 7,401,509 | ¥ 6,853,202 | |
Inventories | ¥ 7,401,509 | $ 1,161,458 | ¥ 6,853,202 |
INVENTORIES (Details)
INVENTORIES (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INVENTORIES | |||
Inventories write-down | ¥ 0 | ¥ 0 | ¥ 0 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Receivable from third party payment platforms | ¥ 63,747,704 | ¥ 31,821,937 | |
Prepaid expenses | 15,239,076 | 14,955,773 | |
Deposits and prepaid rental fees | 4,202,244 | 3,373,228 | |
Deferred payment platforms commission fee | 3,126,394 | 2,553,825 | |
Interest receivable | 1,260,880 | 1,460,642 | |
Deductible input VAT | 1,012,009 | 1,639,485 | |
Others | 11,188,781 | 2,824,526 | |
Prepayments and Other Current Assets | ¥ 99,777,088 | $ 15,657,202 | ¥ 58,629,416 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) | Dec. 31, 2020CNY (¥) |
Equity securities with readily determinable fair value: | |
Equity securities with readily determinable fair value | ¥ 50,000 |
Total | 50,000 |
Others. | |
Equity securities with readily determinable fair value: | |
Equity securities with readily determinable fair value | ¥ 50,000 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) | Jul. 28, 2020CNY (¥)shares | Jul. 28, 2020USD ($)shares | Sep. 07, 2018CNY (¥) | Sep. 07, 2018USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) |
Marketable Securities [Line Items] | ||||||||||
Cash consideration | ¥ 20,587,500 | $ 3,000,000 | ||||||||
Unrealized gain on disposal of an investment security | ¥ 1,456,370 | $ 208,098 | ||||||||
Unrealized gain on an available-for-sale investment, net of nil income taxes | 1,456,370 | ¥ 1,591,098 | $ 230,731 | |||||||
Unrealized gain on an available-for-sale investment, income taxes | ¥ | ¥ 0 | 0 | 0 | |||||||
Losses on change in fair value of warrants | 5,268 | 750 | 274,829 | $ 39,854 | ||||||
Mengmei | ||||||||||
Marketable Securities [Line Items] | ||||||||||
Number of redeemable convertible preferred shares acquired | 9,375,000 | |||||||||
Equity interest acquired (as a percent) | 8.15% | 8.15% | ||||||||
Unrealized gain on an available-for-sale investment, income taxes | ¥ | 0 | ¥ 0 | ||||||||
Term of warrants | 3 years | |||||||||
Equity interest after exercise of warrants | 51.00% | |||||||||
Percentage of equity value considered for determining exercise price of warrants | 100.00% | |||||||||
Jinxin Fertility Group Company Limited | Shares sale and purchase agreement | ||||||||||
Marketable Securities [Line Items] | ||||||||||
Cash consideration | ¥ | ¥ 25,023,165 | |||||||||
Unrealized gain on an available-for-sale investment, net of nil income taxes | ¥ 4,863,233 | $ 694,897 | ||||||||
Number of shares sold | shares | 9,375,000 | 9,375,000 | ||||||||
Cash consideration | $ 3,580,108 | |||||||||
Maximum | Mengmei | ||||||||||
Marketable Securities [Line Items] | ||||||||||
Exercise price of warrants | $ 200,000,000 | |||||||||
Minimum | Mengmei | ||||||||||
Marketable Securities [Line Items] | ||||||||||
Exercise price of warrants | $ 100,000,000 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment | ¥ 27,617,483 | ¥ 22,240,308 | |
Accumulated depreciation | (16,431,324) | (10,794,760) | |
Property and Equipment, net | 11,186,159 | $ 1,755,352 | 11,445,548 |
Office and electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment | 13,832,466 | 11,200,226 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment | ¥ 13,785,017 | ¥ 11,040,082 |
PROPERTY AND EQUIPMENT, NET - D
PROPERTY AND EQUIPMENT, NET - Depreciation expense on property and equipment (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | ¥ 6,705,126 | ¥ 3,902,636 | ¥ 2,619,682 |
Cost of revenues | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | 948,069 | 821,401 | 525,956 |
Selling and marketing expenses | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | 2,381,693 | 1,511,562 | 997,224 |
Technology and development expenses | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | 2,640,921 | 1,176,602 | 845,318 |
General and administrative expenses | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | ¥ 734,443 | ¥ 393,071 | ¥ 251,184 |
INTANGIBLE ASSET, NET - Schedul
INTANGIBLE ASSET, NET - Schedule of intangible asset, net (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset | ¥ 57,062,111 | ¥ 53,800,860 | ||
Accumulated amortization | (9,942,794) | (1,716,348) | ||
Impairment of intangible assets | (2,915,000) | $ (457,427) | 0 | ¥ 0 |
Total | 44,204,317 | 52,084,512 | ||
Amortization of Intangible Assets, Total | 8,226,446 | 1,716,348 | ¥ 0 | |
Cost of revenues | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets, Total | 6,236,802 | 1,429,116 | ||
Selling and marketing expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets, Total | 1,989,644 | 287,232 | ||
License | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset | 7,372,111 | 4,110,860 | ||
Accumulated amortization | (2,198,142) | (822,172) | ||
Total | 5,173,969 | 3,288,688 | ||
User base | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset | 7,730,000 | 7,730,000 | ||
Accumulated amortization | (2,276,875) | (287,232) | ||
Impairment of intangible assets | (400,000) | |||
Total | 5,053,125 | 7,442,768 | ||
Brand name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset | 38,500,000 | 38,500,000 | ||
Accumulated amortization | (4,188,333) | (390,833) | ||
Impairment of intangible assets | (1,855,000) | |||
Total | 32,456,667 | 38,109,167 | ||
Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset | 3,460,000 | 3,460,000 | ||
Accumulated amortization | (1,279,444) | (216,111) | ||
Impairment of intangible assets | (660,000) | |||
Total | ¥ 1,520,556 | ¥ 3,243,889 |
INTANGIBLE ASSET, NET - Sched_2
INTANGIBLE ASSET, NET - Schedule of estimated amortization expenses of above intangible assets for future years (Details) - CNY (¥) | Dec. 31, 2021 | Dec. 31, 2020 |
INTANGIBLE ASSET, NET | ||
2022 | ¥ 7,726,402 | |
2023 | 7,660,291 | |
2024 | 6,788,693 | |
2025 | 4,123,264 | |
2026 | 3,640,000 | |
Thereafter | 14,256,667 | |
Total | ¥ 44,204,317 | ¥ 52,084,512 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
INTANGIBLE ASSET, NET | ||||
Impairment of intangible assets | ¥ 2,915,000 | $ 457,427 | ¥ 0 | ¥ 0 |
Amortization expenses | ¥ 8,226,446 | ¥ 1,716,348 | ¥ 0 |
GOODWILL - Carrying amount of g
GOODWILL - Carrying amount of goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
GOODWILL. | |||
Beginning balance | ¥ 196,002,568 | ||
Additions in goodwill related to business combinations (Note 21) | ¥ 196,002,568 | ||
Impairment of goodwill | (106,949,249) | $ (16,782,671) | |
Foreign currency translation adjustment | (7,301,455) | ||
Ending balance | ¥ 81,751,864 | $ 12,828,651 | ¥ 196,002,568 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) - 12 months ended Dec. 31, 2021 | CNY (¥) | USD ($) |
GOODWILL. | ||
Impairment of goodwill | ¥ 106,949,249 | $ 16,782,671 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Accrued payroll and welfare | ¥ 24,015,031 | ¥ 29,859,310 | |
Technology supporting fees payable | 20,609,458 | 9,856,805 | |
Advertising and marketing fees payable | 5,144,789 | 13,855,032 | |
Other taxes payable | 6,525,618 | 9,513,024 | |
Rebate to advertising customers | 4,263,036 | 11,896,947 | |
Professional fee payable | 3,069,892 | 1,350,153 | |
Deposits received from suppliers | 1,170,000 | 1,120,000 | |
Payable for business combinations | 24,742,025 | ||
Cash collected on behalf of service providers | 10,356,117 | ||
Other accrued expenses | 18,164,527 | 6,409,383 | |
Accrued Expenses and Other Current Liabilities | ¥ 82,962,351 | $ 13,018,602 | ¥ 118,958,796 |
CONVERTIBLE DEBT - Additional i
CONVERTIBLE DEBT - Additional information (Details) | Mar. 09, 2020CNY (¥) | Nov. 20, 2019CNY (¥) | Nov. 20, 2019USD ($) | Mar. 09, 2017USD ($)$ / shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Nov. 20, 2019USD ($) |
Debt Instrument [Line Items] | |||||||
Term of convertible debt | 1 year | ||||||
Face amount of convertible debt | ¥ 20,000,000 | $ 3,000,000 | $ 3,000,000 | ||||
Changes in fair value of convertible debt | ¥ 0 | ¥ 8,749,608 | |||||
Repayment of a convertible debt | 20,000,000 | ||||||
Accrued interest | 2,700,000 | ||||||
Gain on extinguishment of a convertible debt | 9,000,000 | $ 1,300,000 | ¥ 8,986,048 | ||||
Settlement amount of convertible debt | 22,700,000 | 3,200,000 | |||||
Carrying amount of convertible debt | ¥ 31,800,000 | $ 4,500,000 | |||||
Interest paid | ¥ 2,700,000 | ||||||
Series C-2 Preferred Shares | |||||||
Debt Instrument [Line Items] | |||||||
Number of shares issuable upon conversion (in shares) | $ | 116,640 | ||||||
Interest rate (as a percent) | 5.00% | ||||||
Conversion price (in dollars per share) | $ / shares | $ 25.72 |
MEZZANINE EQUITY (Details)
MEZZANINE EQUITY (Details) | Feb. 08, 2018USD ($)$ / sharesshares | Feb. 08, 2018CNY (¥)shares | Jan. 26, 2018USD ($) | Jun. 27, 2016USD ($)$ / sharesshares | Jun. 27, 2016CNY (¥)shares | May 09, 2016USD ($)shares | Nov. 04, 2014shares | Oct. 30, 2014USD ($)$ / sharesshares | Oct. 30, 2014CNY (¥)shares | May 15, 2014USD ($)$ / sharesshares | May 15, 2014CNY (¥)shares | Apr. 27, 2013USD ($)$ / sharesshares | Apr. 27, 2013CNY (¥)shares | Apr. 08, 2016USD ($)$ / sharesshares | Apr. 08, 2016CNY (¥)shares | Nov. 02, 2017USD ($)$ / sharesshares | Nov. 02, 2017CNY (¥)shares | Nov. 01, 2018USD ($)$ / sharesshares | Nov. 01, 2018CNY (¥)shares | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($)$ / sharesshares | Jul. 31, 2020$ / shares | Nov. 20, 2019USD ($) | Nov. 20, 2019CNY (¥) | Dec. 31, 2018shares | Mar. 09, 2017USD ($) | May 09, 2016CNY (¥) |
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Face amount of debt | $ 3,000,000 | ¥ 20,000,000 | $ 3,000,000 | ||||||||||||||||||||||||
Dividend rate (as a percent) | 8.00% | ||||||||||||||||||||||||||
Series A Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued (in shares) | shares | 288,240 | 288,240 | 1,275,000 | 1,275,000 | |||||||||||||||||||||||
Issue price (in dollars per share) | $ 27.75 | $ 0.38 | |||||||||||||||||||||||||
Aggregated cash consideration | $ 8,000,000 | ¥ 50,753,200 | $ 482,253 | ¥ 3,000,000 | |||||||||||||||||||||||
Liquidation preference, percent of issuance price considered (as a percent) | 120.00% | ||||||||||||||||||||||||||
Par value per share (In dollars per share) | $ 0.0001 | ||||||||||||||||||||||||||
Beneficial conversion feature | ¥ | ¥ 0 | ||||||||||||||||||||||||||
Series A Convertible Preferred Shares | Shareholder of Series A Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares sold (in shares) | shares | 124,138 | ||||||||||||||||||||||||||
Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued upon conversion (in shares) | shares | 1 | ||||||||||||||||||||||||||
Beneficial conversion feature | ¥ | ¥ 0 | ||||||||||||||||||||||||||
Series A-1 Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued (in shares) | shares | 2,000,000 | 2,000,000 | |||||||||||||||||||||||||
Issue price (in dollars per share) | $ 0.88 | ||||||||||||||||||||||||||
Aggregated cash consideration | $ 1,764,700 | ¥ 10,877,611 | |||||||||||||||||||||||||
Liquidation preference, percent of issuance price considered (as a percent) | 120.00% | ||||||||||||||||||||||||||
Par value per share (In dollars per share) | 0.0001 | ||||||||||||||||||||||||||
Share re-designated from another series of shares | shares | 124,138 | ||||||||||||||||||||||||||
Compounded rate of return considered for determination of redemption price (as a percent) | 8.00% | ||||||||||||||||||||||||||
Series B Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued (in shares) | shares | 1,862,069 | 1,862,069 | |||||||||||||||||||||||||
Issue price (in dollars per share) | $ 6.63 | ||||||||||||||||||||||||||
Aggregated cash consideration | $ 12,350,000 | ¥ 75,899,395 | |||||||||||||||||||||||||
Liquidation preference, percent of issuance price considered (as a percent) | 150.00% | ||||||||||||||||||||||||||
Par value per share (In dollars per share) | 0.0001 | ||||||||||||||||||||||||||
Compounded rate of return considered for determination of redemption price (as a percent) | 8.00% | ||||||||||||||||||||||||||
Series C Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued (in shares) | shares | 1,091,391 | 1,091,391 | |||||||||||||||||||||||||
Issue price (in dollars per share) | $ 12.88 | ||||||||||||||||||||||||||
Aggregated cash consideration | $ 14,061,477 | ¥ 90,876,514 | |||||||||||||||||||||||||
Liquidation preference, percent of issuance price considered (as a percent) | 150.00% | ||||||||||||||||||||||||||
Par value per share (In dollars per share) | 0.0001 | ||||||||||||||||||||||||||
Compounded rate of return considered for determination of redemption price (as a percent) | 8.00% | ||||||||||||||||||||||||||
Series C-1 Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued (in shares) | shares | 745,114 | 745,114 | |||||||||||||||||||||||||
Issue price (in dollars per share) | $ 16.10 | ||||||||||||||||||||||||||
Aggregated cash consideration | $ 12,000,000 | ¥ 79,650,000 | |||||||||||||||||||||||||
Liquidation preference, percent of issuance price considered (as a percent) | 150.00% | ||||||||||||||||||||||||||
Par value per share (In dollars per share) | 0.0001 | ||||||||||||||||||||||||||
Re-designation price (in dollars per share) | $ 12.88 | ||||||||||||||||||||||||||
Compounded rate of return considered for determination of redemption price (as a percent) | 8.00% | ||||||||||||||||||||||||||
Series C-1 Redeemable Convertible Preferred Shares | Shareholder of Series A 1 Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares sold (in shares) | shares | 232,847 | 232,847 | |||||||||||||||||||||||||
Series D Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued (in shares) | shares | 1,080,901 | 1,080,901 | 1,062,885 | 1,062,885 | |||||||||||||||||||||||
Issue price (in dollars per share) | $ 27.75 | $ 27.75 | |||||||||||||||||||||||||
Aggregated cash consideration | $ 29,999,974 | ¥ 200,622,325 | $ 29,499,990 | ¥ 196,648,046 | |||||||||||||||||||||||
Par value per share (In dollars per share) | $ 0.0001 | ||||||||||||||||||||||||||
Payments of issuance cost of Series D Redeemable Convertible Preferred Shares | $ 740,313 | ¥ 4,950,781 | $ 1,045,254 | ¥ 6,913,310 | |||||||||||||||||||||||
Compounded rate of return considered for determination of redemption price (as a percent) | 10.00% | ||||||||||||||||||||||||||
First HK$2 million of assessable profits | Series D Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Liquidation preference, percent of issuance price considered (as a percent) | 150.00% | ||||||||||||||||||||||||||
Remaining profits after first HK$2 million of assessable profits | Series D Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Liquidation preference, percent of issuance price considered (as a percent) | 100.00% | ||||||||||||||||||||||||||
Liquidation preference, compounded rate of return considered (as a percent) | 10.00% | ||||||||||||||||||||||||||
Convertible promissory notes | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Face amount of debt | $ 1,999,983 | ¥ 13,020,889 | |||||||||||||||||||||||||
Convertible promissory notes | Series C Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Shares issued upon conversion (in shares) | shares | 155,230 | ||||||||||||||||||||||||||
IPO | Series A Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued upon conversion (in shares) | shares | 1 | ||||||||||||||||||||||||||
Threshold minimum percentage of preferred shareholders to approve (as a percent) | 92.00% | ||||||||||||||||||||||||||
IPO | Redeemable Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Number of shares issued upon conversion (in shares) | shares | 1 | ||||||||||||||||||||||||||
IPO | Minimum | Series A Convertible Preferred Shares | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Pre-offering valuation threshold | $ | $ 850,000,000 | ||||||||||||||||||||||||||
Pre-offering proceeds threshold | $ | $ 100,000,000 | ||||||||||||||||||||||||||
Drag-Along Sale | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Drag-along preferred shareholders, ownership (as a percent) | 92.00% | ||||||||||||||||||||||||||
Par value per share (In dollars per share) | $ 0.0001 | ||||||||||||||||||||||||||
Drag-Along Sale | Minimum | |||||||||||||||||||||||||||
Mezzanine Equity [Line Items] | |||||||||||||||||||||||||||
Threshold minimum company valuation to trigger drag-along rights | $ | $ 2,500,000,000 |
MEZZANINE EQUITY - Company's Se
MEZZANINE EQUITY - Company's Series A Preferred Shares activities (Details) - Series A Convertible Preferred Shares | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Beginning balance | ¥ 29,751,569 |
Conversion to shares | (33,042,477) |
Foreign currency translation adjustment | ¥ 3,290,908 |
Ending balance |
MEZZANINE EQUITY - Company's Re
MEZZANINE EQUITY - Company's Redeemable Convertible Preferred Shares activities (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Accretion of redeemable convertible preferred shares | ¥ 244,080,678 | |||
Conversion to ordinary shares | ¥ 0 | $ 0 | (1,500,748,518) | ¥ 0 |
Redeemable Convertible Preferred Shares | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 1,700,726,187 | 1,045,164,575 | ||
Accretion of redeemable convertible preferred shares | 631,005,563 | |||
Accretion and modification of redeemable convertible preferred shares | (244,080,678) | |||
Conversion to ordinary shares | (1,467,706,041) | |||
Foreign currency translation adjustment | 11,060,532 | 24,556,049 | ||
Ending balance | 1,700,726,187 | |||
Series A-1 Redeemable Convertible Preferred Shares | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 17,959,327 | 16,359,651 | ||
Accretion of redeemable convertible preferred shares | 1,315,008 | |||
Accretion and modification of redeemable convertible preferred shares | 707,682 | |||
Conversion to ordinary shares | (18,780,954) | |||
Foreign currency translation adjustment | 113,945 | 284,668 | ||
Ending balance | 17,959,327 | |||
Series B Redeemable Convertible Preferred Shares | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 483,612,008 | 239,225,246 | ||
Accretion of redeemable convertible preferred shares | 237,680,316 | |||
Accretion and modification of redeemable convertible preferred shares | (68,419,392) | |||
Conversion to ordinary shares | (418,336,891) | |||
Foreign currency translation adjustment | 3,144,275 | 6,706,446 | ||
Ending balance | 483,612,008 | |||
Series C Redeemable Convertible Preferred Shares | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 327,278,389 | 178,003,498 | ||
Accretion of redeemable convertible preferred shares | 144,659,627 | |||
Accretion and modification of redeemable convertible preferred shares | (49,340,009) | |||
Conversion to ordinary shares | (280,068,866) | |||
Foreign currency translation adjustment | 2,130,486 | 4,615,264 | ||
Ending balance | 327,278,389 | |||
Series C-1 Redeemable Convertible Preferred Shares | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 258,898,069 | 150,811,043 | ||
Accretion of redeemable convertible preferred shares | 104,388,417 | |||
Accretion and modification of redeemable convertible preferred shares | (40,873,954) | |||
Conversion to ordinary shares | (219,711,065) | |||
Foreign currency translation adjustment | 1,686,950 | 3,698,609 | ||
Ending balance | 258,898,069 | |||
Series D Redeemable Convertible Preferred Shares | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | 612,978,394 | 460,765,137 | ||
Accretion of redeemable convertible preferred shares | 142,962,195 | |||
Accretion and modification of redeemable convertible preferred shares | (86,155,005) | |||
Conversion to ordinary shares | (530,808,265) | |||
Foreign currency translation adjustment | ¥ 3,984,876 | 9,251,062 | ||
Ending balance | ¥ 612,978,394 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||
Apr. 30, 2021shares | Jul. 31, 2020CNY (¥)shares | Jul. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2021Vote$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019shares | Nov. 01, 2018$ / shares | Feb. 08, 2018$ / shares | Nov. 02, 2017$ / shares | Jun. 27, 2016$ / shares | Apr. 08, 2016$ / shares | Oct. 30, 2014$ / shares | May 15, 2014$ / shares | Dec. 31, 2013$ / sharesshares | Apr. 27, 2013$ / shares | |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Ordinary shares, Shares authorized | 5,000,000,000 | 500,000,000 | |||||||||||||
Authorized share capital | $ | $ 500,000 | ||||||||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||
Shares issued (in shares) | 5,114,840 | 5,614,840 | |||||||||||||
Shares outstanding (in shares) | 5,614,840 | ||||||||||||||
Proceeds from issuance of Class A Ordinary Shares | ¥ | ¥ 548,765,995 | ||||||||||||||
Class A | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Ordinary shares, Shares authorized | 4,600,000,000 | 4,600,000,000 | 4,600,000,000 | ||||||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||
Shares issued (in shares) | 13,618,609 | 12,210,830 | |||||||||||||
Shares outstanding (in shares) | 13,618,609 | 12,210,830 | |||||||||||||
Number of shares redesigned to ordinary shares, group one | 1,439,102 | 1,439,102 | |||||||||||||
Number of shares redesigned to ordinary shares, group two | 1,891,291 | 1,891,291 | |||||||||||||
Number of shares redesigned to ordinary shares, group three | 1,862,069 | 1,862,069 | |||||||||||||
Number of shares redesigned to ordinary shares, group four | 1,246,621 | 1,246,621 | |||||||||||||
Number of shares redesigned to ordinary shares, group five | 977,961 | 977,961 | |||||||||||||
Number of shares redesigned to ordinary shares, group six | 2,143,786 | 2,143,786 | |||||||||||||
Number of votes | Vote | 1 | ||||||||||||||
Conversion ratio for each Class B ordinary share | 1 | ||||||||||||||
Conversion Of Shares | 500,000 | ||||||||||||||
Class A | IPO | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Issuance of ordinary shares upon initial public offering | 2,650,000 | 2,650,000 | |||||||||||||
Issue price (in dollars per share) | $ / shares | $ 32 | ||||||||||||||
Proceeds from issuance of Class A Ordinary Shares | ¥ 549,000,000 | $ 78,000,000 | |||||||||||||
Class B | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Ordinary shares, Shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||
Shares issued (in shares) | 5,114,840 | 5,614,840 | |||||||||||||
Shares outstanding (in shares) | 5,114,840 | 5,614,840 | |||||||||||||
Number of shares redesigned to ordinary shares, group seven | 5,614,840 | 5,614,840 | |||||||||||||
Number of votes | Vote | 5 | ||||||||||||||
Conversion Of Shares | 500,000 | ||||||||||||||
Series A Convertible Preferred Shares | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Issue price (in dollars per share) | $ / shares | $ 27.75 | $ 0.38 | |||||||||||||
Redesignation conversion ratio | 1 | 1 | |||||||||||||
Number of shares redesigned to ordinary shares, group one | (1,439,102) | (1,439,102) | |||||||||||||
Par value per share (In dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||
Series A-1 Redeemable Convertible Preferred Shares | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Issue price (in dollars per share) | $ / shares | $ 0.88 | ||||||||||||||
Redesignation conversion ratio | 1 | 1 | |||||||||||||
Number of shares redesigned to ordinary shares, group two | (1,891,291) | (1,891,291) | |||||||||||||
Par value per share (In dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||
Series B Redeemable Convertible Preferred Shares | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Issue price (in dollars per share) | $ / shares | $ 6.63 | ||||||||||||||
Redesignation conversion ratio | 1 | 1 | |||||||||||||
Number of shares redesigned to ordinary shares, group three | (1,862,069) | (1,862,069) | |||||||||||||
Par value per share (In dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||
Series C Redeemable Convertible Preferred Shares | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Issue price (in dollars per share) | $ / shares | $ 12.88 | ||||||||||||||
Redesignation conversion ratio | 1 | 1 | |||||||||||||
Number of shares redesigned to ordinary shares, group four | (1,246,621) | (1,246,621) | |||||||||||||
Par value per share (In dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||
Series C-1 Redeemable Convertible Preferred Shares | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Issue price (in dollars per share) | $ / shares | $ 16.10 | ||||||||||||||
Redesignation conversion ratio | 1 | 1 | |||||||||||||
Number of shares redesigned to ordinary shares, group five | (977,961) | (977,961) | |||||||||||||
Par value per share (In dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||
Series D Redeemable Convertible Preferred Shares | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Issue price (in dollars per share) | $ / shares | $ 27.75 | $ 27.75 | |||||||||||||
Redesignation conversion ratio | 1 | 1 | |||||||||||||
Number of shares redesigned to ordinary shares, group six | (2,143,786) | (2,143,786) | |||||||||||||
Par value per share (In dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||
Ordinary shares. | |||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||
Ordinary shares, Shares authorized | 200,000,000 | ||||||||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||||||
Number of shares redesigned to ordinary shares, group seven | (5,614,840) | (5,614,840) |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | Aug. 24, 2021shares | Jun. 15, 2020shares | Mar. 11, 2015shares | Jun. 30, 2020$ / sharesshares | Dec. 31, 2021$ / shares | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Oct. 31, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | 4 years | ||||||
Share-based Payment Arrangement, Expense | ¥ | ¥ 15,911,144 | ¥ 186,903,431 | ||||||
Exercise price | $ / shares | $ 0.01 | |||||||
Mr. Baoli Ma, founder, Chairman and Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | ¥ | 68,166,664 | |||||||
Exercise price | $ / shares | $ 0.01 | |||||||
General and administrative expenses | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | ¥ | 830,710 | ¥ 141,544,319 | ||||||
General and administrative expenses | Non-employee | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | ¥ | ¥ 31,082,306 | |||||||
2015 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to motivate directors, employees and consultants of the Group | 1,551,724 | |||||||
Vesting period | 4 years | |||||||
2020 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to motivate directors, employees and consultants of the Group | 758,783 | |||||||
2020 Plan | Mr. Baoli Ma, founder, Chairman and Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to motivate directors, employees and consultants of the Group | 303,513 | |||||||
2020 Plan | Non-employee | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to motivate directors, employees and consultants of the Group | 268,487 | |||||||
2021 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to motivate directors, employees and consultants of the Group | 833,550 | |||||||
Option vest on the first anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 25.00% | 25.00% | ||||||
Option vest on the first anniversary | 2015 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 25.00% | |||||||
Option vest monthly over subsequent 36 months | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 36 months | 36 months | ||||||
Option vest monthly over subsequent 36 months | 2015 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 36 months |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Options Activity (Details) | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Number of shares | |
Outstanding at the beginning | shares | 2,005,600 |
Granted | shares | 508,619 |
Expired | shares | (304) |
Exercised | shares | (907,779) |
Forfeited | shares | (234,872) |
Vested and expect to vested as of December 31, 2021 | shares | 1,371,264 |
Outstanding at the end | shares | 1,371,264 |
Exercisable as of December 31, 2021 | shares | 809,499 |
Weighted average exercise price | |
Outstanding at the beginning | $ / shares | $ 0.01 |
Granted | $ / shares | 0.01 |
Expired | $ / shares | 0.01 |
Exercised | $ / shares | 0.01 |
Forfeited | $ / shares | 0.01 |
Vested and expect to vested as of December 31, 2020 | $ / shares | 0.01 |
Outstanding at the end | $ / shares | 0.01 |
Exercisable as of December 31, 2020 | $ / shares | $ 0.01 |
Weighted remaining contractual years and Aggregate intrinsic value | |
Weighted remaining contractual years | 8 years 2 months 26 days |
Vested and expect to vested as of December 31, 2021 | 8 years 2 months 26 days |
Exercisable as of December 31, 2021 | 7 years 9 months 18 days |
Aggregate intrinsic value | $ | $ 4,182,355 |
Vested and expect to vested as of December 31, 2021 | $ | 4,182,355 |
Exercisable as of December 31, 2021 | $ | $ 2,468,972 |
SHARE-BASED COMPENSATION - Bino
SHARE-BASED COMPENSATION - Binominal option pricing model (Details) | 12 Months Ended | |||
Dec. 31, 2021$ / shares¥ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2020¥ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free rate of return (per annum) | 1.61% | |||
Volatility | 59.23% | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Fair value of underlying ordinary share | ¥ / shares | ¥ 5.96 | |||
Expected term | 10 years | 10 years | 10 years | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free rate of return (per annum) | 1.61% | 0.23% | 1.78% | |
Volatility | 59.23% | 50.92% | 57.20% | |
Exercise multiple | ¥ 2.2 | $ 2.2 | $ 2.2 | |
Fair value of underlying ordinary share | $ 17.11 | $ 17.95 | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free rate of return (per annum) | 1.70% | 2.56% | ||
Volatility | 56.70% | 60.91% | ||
Exercise multiple | ¥ 2.8 | $ 2.8 | $ 2.8 | |
Fair value of underlying ordinary share | (per share) | $ 31.15 | ¥ 37.71 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021CNY (¥)$ / shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2020$ / shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2019$ / shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Weighted average grant date fair value of the share options | $ / shares | $ 16.19 | $ 28.70 | $ 29.02 | |||
Total unrecognized compensation expense related to non-vested share options | ¥ 40,677,525 | $ 40,677,525 | ||||
weighted average period | 2 years 9 months 3 days | |||||
Compensation expense | ¥ 15,911,144 | ¥ 186,903,431 | ||||
IPO | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Compensation expense | 139,374,113 | ¥ 0 | ||||
Mr. Baoli Ma, founder, Chairman and Chief Executive Officer | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Compensation expense | 68,166,664 | |||||
Cost of revenues | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Compensation expense | 2,140,523 | 11,698,603 | ||||
Selling and marketing expenses | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Compensation expense | 7,678,679 | 16,922,885 | ||||
General and administrative expenses | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Compensation expense | 830,710 | 141,544,319 | ||||
General and administrative expenses | Non-employee | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Compensation expense | 31,082,306 | |||||
Technology and product development expenses | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Compensation expense | ¥ 5,261,232 | ¥ 16,737,624 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) | Dec. 31, 2020CNY (¥) |
Investment securities | |
Equity securities with readily determinable fair value | ¥ 50,000 |
Total | 50,000 |
Level 3 | |
Investment securities | |
Equity securities with readily determinable fair value | 50,000 |
Total | ¥ 50,000 |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Gain or Losses included in earnings | ¥ 0 | ¥ (8,749,608) | |
Convertible debt | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at the beginning | (22,450,219) | ||
Gain or Losses included in earnings | (8,749,608) | ||
Foreign Currency Translation Adjustment | (633,141) | ||
Extinguishment | 31,832,968 | ||
Investment securities. | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at the beginning | ¥ 50,000 | 23,579,048 | 21,887,899 |
Gain or Losses included in earnings | 4,857,986 | (274,829) | |
Gain or Losses included in other comprehensive loss | (3,406,863) | 1,591,098 | |
Foreign Currency Translation Adjustment | 42,994 | 374,880 | |
Extinguishment | (50,000) | (25,023,165) | |
Balance at the end | 50,000 | 23,579,048 | |
Debt securities | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at the beginning | 23,523,746 | 21,559,157 | |
Gain or Losses included in earnings | 4,863,233 | ||
Gain or Losses included in other comprehensive loss | (3,406,863) | 1,591,098 | |
Foreign Currency Translation Adjustment | 42,977 | 373,491 | |
Extinguishment | (25,023,093) | ||
Balance at the end | 23,523,746 | ||
Equity securities with readily determinable fair value | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at the beginning | 50,000 | 55,302 | 328,742 |
Gain or Losses included in earnings | (5,247) | (274,829) | |
Foreign Currency Translation Adjustment | 17 | 1,389 | |
Extinguishment | ¥ (50,000) | (72) | |
Balance at the end | ¥ 50,000 | ¥ 55,302 |
INCOME TAX (Details)
INCOME TAX (Details) - HKD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Hong Kong S.A.R | |||
Income Taxes [Line Items] | |||
Statutory income tax rate | 16.50% | ||
Assessable profits | $ 2 | ||
Hong Kong S.A.R | First HK$2 million of assessable profits | |||
Income Taxes [Line Items] | |||
Statutory income tax rate | 8.25% | ||
Hong Kong S.A.R | Remaining profits after first HK$2 million of assessable profits | |||
Income Taxes [Line Items] | |||
Statutory income tax rate | 16.50% | ||
PRC | |||
Income Taxes [Line Items] | |||
Statutory income tax rate | 25.00% | ||
Preferential income tax rate | 15.00% | 15.00% |
INCOME TAX - Components of loss
INCOME TAX - Components of loss before income taxes (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Components of loss before income taxes | ||||
Loss before income taxes | ¥ 308,802,938 | $ 48,457,919 | ¥ 223,294,678 | ¥ 51,998,954 |
PRC, excluding Hong Kong S.A.R. | ||||
Components of loss before income taxes | ||||
Loss before income taxes | 229,692,055 | 165,783,490 | 13,363,885 | |
Hong Kong S.A.R. | ||||
Components of loss before income taxes | ||||
Loss before income taxes | 59,079,524 | 38,305,342 | 36,302,843 | |
Cayman | ||||
Components of loss before income taxes | ||||
Loss before income taxes | 14,378,166 | 5,332,840 | 646,803 | |
Japan | ||||
Components of loss before income taxes | ||||
Loss before income taxes | 3,446,328 | 7,697,439 | 258,209 | |
Others | ||||
Components of loss before income taxes | ||||
Loss before income taxes | ¥ 2,206,865 | ¥ 6,175,567 | ¥ 1,427,214 |
INCOME TAX - Income tax expense
INCOME TAX - Income tax expense recognized in consolidated statements of comprehensive loss (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Income tax expense recognized in the consolidated statements of comprehensive loss | ||||
Current income tax expense-total | ¥ 2,988,105 | ¥ 1,053,518 | ¥ 930,554 | |
Deferred income tax expense | (2,167,099) | $ (340,065) | (2,495,332) | |
Income tax expense (benefit) | 821,006 | $ 128,834 | (1,441,814) | 930,554 |
PRC, excluding Hong Kong S.A.R. | ||||
Income tax expense recognized in the consolidated statements of comprehensive loss | ||||
Current income tax expense-total | 1,168,707 | (64,615) | 112,473 | |
Deferred income tax expense | (2,167,099) | (2,495,332) | ||
Hong Kong S.A.R. | ||||
Income tax expense recognized in the consolidated statements of comprehensive loss | ||||
Current income tax expense-total | ¥ 1,819,398 | ¥ 1,118,133 | ¥ 818,081 |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of differences between PRC statutory income tax rate and group's effective income tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAX | |||
PRC Statutory income tax rate | (25.00%) | (25.00%) | (25.00%) |
Increase (decrease) in effective income tax rate resulting from: | |||
Tax rate differential for non-PRC entities | 2.90% | 1.80% | 6.10% |
Preferential tax rate | 7.30% | (3.20%) | 6.50% |
Research and development expenses additional deduction | (6.80%) | (3.70%) | (15.50%) |
Non-deductible share-based compensation expenses | 1.30% | 20.90% | |
Non-taxable income | (0.10%) | (0.50%) | |
Impairment of goodwill | 8.70% | ||
Other non-deductible expenses | 2.80% | 2.40% | 0.50% |
Change in valuation allowance | 9.20% | 6.70% | 29.20% |
Effective income tax rate | 0.30% | (0.60%) | 1.80% |
INCOME TAX - Deferred income ta
INCOME TAX - Deferred income tax assets (Details) - CNY (¥) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets | ||||
Net operating loss carry forwards | ¥ 99,347,341 | ¥ 72,435,457 | ||
Donation | 480,684 | 457,730 | ||
Deductible advertising expenses | 2,103,893 | 867,094 | ||
Total deferred income tax assets | 101,931,918 | 73,760,281 | ||
Less: Valuation allowance | (100,483,935) | (71,676,908) | ¥ (57,960,509) | ¥ (42,910,959) |
Deferred income tax assets, net | 1,447,983 | 2,083,373 | ||
Intangible assets | (11,051,079) | (13,038,256) | ||
Deferred income tax liabilities, net | (11,051,079) | (13,038,256) | ||
Net deferred income tax liabilities | (9,603,096) | ¥ (10,954,883) | ||
2022 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 379,756 | |||
2023 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 206,696 | |||
2024 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 1,466,535 | |||
2025 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 8,271,951 | |||
2026 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 11,009,934 | |||
2027 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 50,611,222 | |||
2028 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 49,150,819 | |||
2029 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 35,279,589 | |||
2031 | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | 226,849,977 | |||
PRC | ||||
Deferred income tax assets | ||||
Net operating loss carry forwards | ¥ 383,226,479 |
INCOME TAX - Changes in valuati
INCOME TAX - Changes in valuation allowance (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in valuation allowance | |||
Balance at the beginning of the year | ¥ 71,676,908 | ¥ 57,960,509 | ¥ 42,910,959 |
Additions of valuation allowance | 46,283,222 | 28,879,521 | 14,728,024 |
Reductions of valuation allowance | (16,639,886) | (13,070,605) | |
Foreign exchange translation adjustments | (836,309) | (2,092,517) | 321,526 |
Balance at the end of the year | 100,483,935 | ¥ 71,676,908 | ¥ 57,960,509 |
Maximum underpayment of taxes | ¥ 100,000 | ||
Income tax statute of limitation | 10 years |
NET (LOSS ) INCOME PER SHARE -
NET (LOSS ) INCOME PER SHARE - Basic and diluted net loss per share computation (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss | ¥ (309,623,944) | $ (48,586,753) | ¥ (221,852,864) | ¥ (52,929,508) |
(Accretion) reversal of accretion and modification of Redeemable Convertible Preferred Shares to redemption value | 244,080,678 | (631,005,563) | ||
Net income attributable to preferred shareholders | (6,706,551) | |||
Net (loss) income allocated to Class A and Class B ordinary shareholders as reported in basic net loss (income) per Class A and Class B Ordinary Share | (309,623,944) | 15,521,263 | (683,935,071) | |
Earnings allocated to Series B, C, C-1, D convertible redeemable preferred shares | 6,706,551 | |||
Reversal of accretion on Series B, C, C-1, D convertible redeemable preferred shares | (244,788,360) | |||
Numerator for diluted net loss per share calculation | ¥ (309,623,944) | ¥ (222,560,546) | ¥ (683,935,071) | |
Denominator: | ||||
Weighted average number of ordinary shares, basic | shares | 19,352,595 | 19,352,595 | 11,974,046 | 5,614,840 |
Weighted Average Number of Shares Outstanding, Diluted | shares | 19,352,595 | 19,352,595 | 15,208,426 | 5,614,840 |
Effect of dilutive securities | shares | 3,234,380 | |||
Denominator for diluted net loss per share calculation | shares | 19,352,595 | 19,352,595 | 15,208,426 | 5,614,840 |
Net loss per ordinary share | ||||
Basic | (per share) | ¥ (16) | $ (2.51) | ¥ 1.30 | ¥ (121.81) |
Diluted | (per share) | ¥ (16) | $ (2.51) | ¥ (14.63) | ¥ (121.81) |
NET (LOSS ) INCOME PER SHARE _2
NET (LOSS ) INCOME PER SHARE - Potentially dilutive securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities that have not been included in the calculation of diluted net loss per share as they are anti-dilutive | 561,765 | 762,167 | 1,084,545 |
Preferred shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities that have not been included in the calculation of diluted net loss per share as they are anti-dilutive | 9,560,830 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Millions | Apr. 03, 2020CNY (¥) | Apr. 12, 2018USD ($)shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | ||||||||
Issuance of interest free loans to a shareholder | ¥ | ¥ 8,000,000 | |||||||
Consideration | ¥ | ¥ 501,227,248 | |||||||
Repurchase of unvested share options from BlueCity Media Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Shares repurchased (in shares) | shares | 288,240 | |||||||
Shares repurchased consideration | $ | $ 8 | |||||||
Share repurchase consideration paid | ¥ 6,898,800 | $ 1 | $ 7 | |||||
Mr. Baoli Ma | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payment made on behalf of a related party | ¥ | ¥ 4,722,814 | |||||||
Number of ADS units issued | shares | 312,500 | 312,500 | ||||||
Mr. Baoli Ma | Class A | ||||||||
Related Party Transaction [Line Items] | ||||||||
Issuance of ordinary shares upon initial public offering | shares | 156,250 | 156,250 | ||||||
Consideration | ¥ 35,103,500 | $ 5 |
REVENUE INFORMATION (Details)
REVENUE INFORMATION (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
REVENUE INFORMATION | ||||
Revenues | ¥ 1,076,591,430 | $ 168,940,688 | ¥ 1,031,323,444 | ¥ 758,887,906 |
Service | ||||
REVENUE INFORMATION | ||||
Revenues | 1,012,382,307 | 1,002,649,055 | 758,887,906 | |
Live streaming | ||||
REVENUE INFORMATION | ||||
Revenues | 820,825,553 | 868,946,403 | 671,410,681 | |
Advertising | ||||
REVENUE INFORMATION | ||||
Revenues | 53,881,336 | 45,452,681 | 35,383,571 | |
Membership | ||||
REVENUE INFORMATION | ||||
Revenues | 128,809,051 | 71,227,203 | 36,738,369 | |
Others | ||||
REVENUE INFORMATION | ||||
Revenues | 8,866,367 | 17,022,768 | ¥ 15,355,285 | |
Merchandise sales | ||||
REVENUE INFORMATION | ||||
Revenues | ¥ 64,209,123 | ¥ 28,674,389 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES. | |||
Rental expense | ¥ 15,403,884 | ¥ 12,673,230 | ¥ 8,127,122 |
Future minimum lease commitments under office non-cancelable operating lease agreements | |||
2022 | 13,315,511 | ||
2023 | 3,718,738 | ||
2024 | 486,426 | ||
2025 | ¥ 123,072 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) | Dec. 01, 2020CNY (¥) | Aug. 25, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Net tangible assets: | |||||
Goodwill | ¥ 81,751,864 | $ 12,828,651 | ¥ 196,002,568 | ||
Lesdo | |||||
Net tangible assets: | |||||
Cash and cash equivalents | ¥ 77 | ||||
Total assets | 3,980,077 | ||||
Other current liabilities | (4,711,582) | ||||
Deferred income tax liabilities | (995,000) | ||||
Goodwill | 3,054,923 | ||||
Total consideration | 1,328,418 | ||||
Lesdo | User base | |||||
Net tangible assets: | |||||
Intangible assets | ¥ 800,000 | ||||
Estimated useful lives | 3 years | ||||
Lesdo | Brand name | |||||
Net tangible assets: | |||||
Intangible assets | ¥ 2,100,000 | ||||
Estimated useful lives | 10 years | ||||
Lesdo | Technology | |||||
Net tangible assets: | |||||
Intangible assets | ¥ 1,080,000 | ||||
Estimated useful lives | 3 years | ||||
Finka | |||||
Net tangible assets: | |||||
Cash and cash equivalents | ¥ 10,497,160 | ||||
Accounts receivable | 1,716,623 | ||||
Other current assets | 6,323,155 | ||||
Total assets | 64,246,938 | ||||
Accounts payable | (208,984) | ||||
Other current liabilities | (8,331,044) | ||||
Deferred income tax liabilities | (11,427,500) | ||||
Goodwill | 192,947,645 | ||||
Total consideration | 237,227,055 | ||||
Finka | User base | |||||
Net tangible assets: | |||||
Intangible assets | ¥ 6,930,000 | ||||
Estimated useful lives | 4 years | ||||
Finka | Brand name | |||||
Net tangible assets: | |||||
Intangible assets | ¥ 36,400,000 | ||||
Estimated useful lives | 10 years | ||||
Finka | Technology | |||||
Net tangible assets: | |||||
Intangible assets | ¥ 2,380,000 | ||||
Estimated useful lives | 3 years |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) | Dec. 01, 2020CNY (¥) | Dec. 01, 2020USD ($) | Aug. 25, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Business Acquisition [Line Items] | |||||||||
Consideration paid | ¥ 24,491,600 | $ 3,843,266 | ¥ 203,081,831 | ||||||
Lesdo | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity interest acquired | 100.00% | ||||||||
Consideration | ¥ 1,328,418 | ||||||||
Consideration paid | ¥ 805,418 | 523,000 | |||||||
Finka | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity interest acquired | 100.00% | 100.00% | |||||||
Consideration | ¥ 237,227,055 | $ 35,997,984 | |||||||
Consideration paid | ¥ 212,773,650 | $ 32,286,199 | ¥ 23,968,600 | $ 3,711,785 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance sheets (Details) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Nov. 20, 2019CNY (¥) | Nov. 20, 2019USD ($) | Dec. 31, 2018CNY (¥) |
Current assets | |||||||
Cash | ¥ 349,785,624 | $ 54,888,997 | ¥ 439,492,788 | ||||
Prepayments and other current assets | 99,777,088 | 15,657,202 | 58,629,416 | ||||
Total current assets | 469,842,783 | 73,728,584 | 682,820,789 | ||||
Non-current assets | |||||||
Total non-current assets | 140,319,805 | 22,019,239 | 262,008,756 | ||||
Total assets | 610,162,588 | 95,747,823 | 944,829,545 | ||||
Current liabilities | |||||||
Accrued expenses and other current liabilities | 82,962,351 | 13,018,602 | 118,958,796 | ||||
Total current liabilities | 152,312,966 | 23,901,227 | 176,680,478 | ||||
Non-current liabilities | |||||||
Convertible debt | ¥ 31,800,000 | $ 4,500,000 | |||||
Total non-current liabilities | 11,903,096 | 1,867,855 | 10,954,883 | ||||
Total liabilities | 164,216,062 | 25,769,082 | 187,635,361 | ||||
Shareholders' equity: | |||||||
Additional paid-in capital | 2,204,845,216 | 345,988,328 | 2,188,870,625 | ||||
Accumulated other comprehensive loss | (125,113,629) | (19,633,059) | (107,514,737) | ||||
Accumulated deficit | (1,633,797,666) | (256,378,506) | (1,324,173,722) | ||||
Total shareholders' equity | 445,946,526 | 69,978,741 | 757,194,184 | ¥ (1,387,500,033) | ¥ (685,037,291) | ||
Total liabilities and shareholders' equity | 610,162,588 | 95,747,823 | 944,829,545 | ||||
Parent Company | Reportable Legal Entities | |||||||
Current assets | |||||||
Cash | 15,988,107 | 261,878,455 | |||||
Prepayments and other current assets | 4,285,975 | 1,483,169 | |||||
Total current assets | 20,274,082 | 263,361,624 | |||||
Non-current assets | |||||||
Investment in subsidiaries and consolidated VIE and VIE's subsidiaries | 437,336,118 | 517,611,994 | |||||
Total non-current assets | 437,336,118 | 517,611,994 | |||||
Total assets | 457,610,200 | 780,973,618 | |||||
Current liabilities | |||||||
Accrued expenses and other current liabilities | 11,663,674 | 23,779,434 | |||||
Total current liabilities | 11,663,674 | 23,779,434 | |||||
Shareholders' equity: | |||||||
Additional paid-in capital | 2,204,845,216 | 2,188,870,625 | |||||
Accumulated other comprehensive loss | (125,113,629) | (107,514,737) | |||||
Accumulated deficit | (1,633,797,666) | (1,324,173,722) | |||||
Total shareholders' equity | 445,946,526 | 757,194,184 | |||||
Total liabilities and shareholders' equity | 457,610,200 | 780,973,618 | |||||
Series A Convertible Preferred Shares | |||||||
Mezzanine Equity | |||||||
Total mezzanine equity | 29,751,569 | ||||||
Series A-1 Redeemable Convertible Preferred Shares | |||||||
Mezzanine Equity | |||||||
Total mezzanine equity | 17,959,327 | 16,359,651 | |||||
Series B Redeemable Convertible Preferred Shares | |||||||
Mezzanine Equity | |||||||
Total mezzanine equity | 483,612,008 | 239,225,246 | |||||
Series C Redeemable Convertible Preferred Shares | |||||||
Mezzanine Equity | |||||||
Total mezzanine equity | 327,278,389 | 178,003,498 | |||||
Series C-1 Redeemable Convertible Preferred Shares | |||||||
Mezzanine Equity | |||||||
Total mezzanine equity | 258,898,069 | 150,811,043 | |||||
Series D Redeemable Convertible Preferred Shares | |||||||
Mezzanine Equity | |||||||
Total mezzanine equity | ¥ 612,978,394 | ¥ 460,765,137 | |||||
Class A | |||||||
Shareholders' equity: | |||||||
Ordinary Shares | 9,487 | 1,489 | 8,572 | ||||
Class A | Parent Company | Reportable Legal Entities | |||||||
Shareholders' equity: | |||||||
Ordinary Shares | 9,487 | 8,572 | |||||
Class B | |||||||
Shareholders' equity: | |||||||
Ordinary Shares | 3,118 | $ 489 | 3,446 | ||||
Class B | Parent Company | Reportable Legal Entities | |||||||
Shareholders' equity: | |||||||
Ordinary Shares | ¥ 3,118 | ¥ 3,446 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of results of operations (Details) | Nov. 20, 2019CNY (¥) | Nov. 20, 2019USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Changes in fair value of a convertible debt | ¥ 0 | ¥ (8,749,608) | ||||
Gain on extinguishment of a convertible debt | ¥ 9,000,000 | $ 1,300,000 | 8,986,048 | |||
Loss before income tax | ¥ (308,802,938) | $ (48,457,919) | (223,294,678) | (51,998,954) | ||
Income tax expense | 821,006 | 128,834 | (1,441,814) | 930,554 | ||
Net loss | (309,623,944) | $ (48,586,753) | (221,852,864) | (52,929,508) | ||
Reportable Legal Entities | Parent Company | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Total operating expenses | (14,378,165) | (5,209,656) | (883,243) | |||
Changes in fair value of a convertible debt | (8,749,608) | |||||
Gain on extinguishment of a convertible debt | 8,986,048 | |||||
Share of losses from subsidiaries, VIE and VIE's subsidiaries | (295,245,779) | (216,643,208) | (52,282,705) | |||
Loss before income tax | (309,623,944) | (221,852,864) | (52,929,508) | |||
Net loss | ¥ (309,623,944) | ¥ (221,852,864) | ¥ (52,929,508) |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statements of cash flows (Details) | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | ¥ (210,901,538) | $ (33,095,053) | ¥ (40,301,906) | ¥ (31,641,810) |
Net cash provided by (used in) investing activities | 130,352,405 | 20,455,136 | (288,737,892) | 285,594,134 |
Net cash provided by (used in) financing activities | 64,034 | 10,048 | 503,479,539 | (22,252,291) |
Effect of foreign currency exchange rate changes on cash | (9,222,065) | (1,447,143) | (32,220,775) | 2,527,206 |
Net (decrease) increase in cash and cash equivalents | (89,707,164) | (14,077,012) | 142,218,966 | 234,227,239 |
Cash and cash equivalents at the beginning of the year | 439,492,788 | 68,966,009 | 297,273,822 | 63,046,583 |
Cash and cash equivalents at the end of the year | 349,785,624 | $ 54,888,997 | 439,492,788 | 297,273,822 |
Reportable Legal Entities | Parent Company | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Net cash (used in) provided by operating activities | (6,796,246) | 1,961,394 | (702,200) | |
Net cash provided by (used in) investing activities | (234,224,099) | (252,497,206) | 2,015,462 | |
Net cash provided by (used in) financing activities | 64,034 | 532,995,338 | (920,710) | |
Effect of foreign currency exchange rate changes on cash | (4,934,037) | (21,301,631) | 76,203 | |
Net (decrease) increase in cash and cash equivalents | (245,890,348) | 261,157,895 | 468,755 | |
Cash and cash equivalents at the beginning of the year | 261,878,455 | 720,560 | 251,805 | |
Cash and cash equivalents at the end of the year | ¥ 15,988,107 | ¥ 261,878,455 | ¥ 720,560 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event. - $ / shares | Apr. 18, 2022 | Jan. 02, 2022 |
Minimum | ||
Subsequent Event [Line Items] | ||
Share Price, Cash | $ 3.20 | |
Maximum | ||
Subsequent Event [Line Items] | ||
Share Price, Cash | 3.70 | $ 3.7 |
American Depository shares | ||
Subsequent Event [Line Items] | ||
Number of ADS represents one share | 1 | |
American Depository shares | Minimum | ||
Subsequent Event [Line Items] | ||
Share Price, Cash | 1.60 | |
American Depository shares | Maximum | ||
Subsequent Event [Line Items] | ||
Share Price, Cash | $ 1.85 | $ 1.85 |