iHuman (IH) 20-F 28 Apr 21 2020 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2020shares
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, 2020
Entity Registrant Name	iHuman Inc.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	false
Entity Central Index Key	0001814423
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Class A ordinary shares
Document Information [Line Items]
Title of 12(b) Security	Class A ordinary shares, par value US$0.0001 per share*
Entity Common Stock, Shares Outstanding	122,622,382
No Trading Symbol Flag	true
Class B ordinary shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	144,000,000
American Depositary Share
Document Information [Line Items]
Title of 12(b) Security	American Depositary Shares, each representing five Class A ordinary shares, par value US$0.0001 per share
Trading Symbol	IH
Security Exchange Name	NYSE

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)
Current assets
Cash and cash equivalents	$ 132,059	¥ 861,682	¥ 104,883
Accounts receivable, net of allowance of RMB316 and RMB156 (US$24) as of December 31, 2019 and 2020, respectively	11,949	77,965	20,118
Amounts due from related parties	49	322	867
Inventories, net	2,586	16,873	20,665
Prepayments and other current assets	9,903	64,619	16,529
Total current assets	156,546	1,021,461	163,062
Noncurrent assets
Property and equipment, net	979	6,390	2,487
Intangible assets, net	1,807	11,789	103
Operating lease right-of-use assets	999	6,521
Other noncurrent assets	121	784	2,663
Total noncurrent assets	3,906	25,484	5,253
Total assets	160,452	1,046,945	168,315
Current liabilities (including current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB182,764 and RMB385,822 (US$59,130) as of December 31, 2019 and 2020, respectively)
Accounts payable	3,303	21,551	10,302
Amounts due to related parties	74	485	69,431
Deferred revenue and customer advances	41,167	268,613	71,831
Accrued expenses and other current liabilities	16,403	107,029	31,200
Current lease liabilities	237	1,544
Total current liabilities	61,184	399,222	182,764
Non-current liabilities
Non-current operating lease liabilities	777	5,070
Total noncurrent liabilities	777	5,070
Total liabilities	61,961	404,292	182,764
Commitments and contingencies
MEZZANINE EQUITY
Contingently redeemable ordinary shares (par value of US$0.0001 per share, 11,318,619 shares issued and outstanding as of December 31, 2019; and nil share issued and outstanding as of December 31, 2020)			120,821
SHAREHOLDERS' EQUITY (DEFICIT)
Ordinary shares	28	184	149
Additional paidin capital	160,966	1,050,304	213,079
Accumulated other comprehensive loss	(3,350)	(21,861)
Accumulated deficit	(59,153)	(385,974)	(348,498)
Total shareholders' equity (deficit)	98,491	642,653	(135,270)
Total liabilities, mezzanine equity and shareholders' equity (deficit)	$ 160,452	¥ 1,046,945	¥ 168,315

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2020CNY (¥)shares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2019CNY (¥)shares
Accounts receivable, allowance	$ 24	¥ 156	$ 48	¥ 316
Current liabilities	$ 61,184	399,222		¥ 182,764
Ordinary shares, par value | $ / shares	$ 0.0001		$ 0.0001
Ordinary shares, shares authorized			500,000,000	500,000,000
Ordinary shares shares issued			215,053,763	215,053,763
Ordinary shares, shares outstanding			215,053,763	215,053,763
VIE
Accounts receivable, allowance	$ 24	156		¥ 316
Current liabilities	$ 59,130	¥ 385,822		¥ 182,764
Contingently redeemable ordinary shares
Contingently redeemable ordinary shares, par value | $ / shares	$ 0.0001		$ 0.0001
Contingently redeemable ordinary shares, shares issued	0	0	11,318,619	11,318,619
Contingently redeemable ordinary shares, shares outstanding	0	0	11,318,619	11,318,619
Class A ordinary shares
Ordinary shares, shares authorized	700,000,000	700,000,000
Ordinary shares shares issued	122,622,382	122,622,382
Ordinary shares, shares outstanding	122,622,382	122,622,382
Class B ordinary shares
Ordinary shares, shares authorized	200,000,000	200,000,000
Ordinary shares shares issued	144,000,000	144,000,000
Ordinary shares, shares outstanding	144,000,000	144,000,000
undesignated
Ordinary shares, shares authorized	100,000,000	100,000,000
Ordinary shares shares issued	0	0
Ordinary shares, shares outstanding	0	0

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2020CNY (¥)¥ / sharesshares	Dec. 31, 2019CNY (¥)¥ / sharesshares	Dec. 31, 2018CNY (¥)¥ / sharesshares
Revenues
Total revenues	$ 81,520	¥ 531,915	¥ 218,656	¥ 131,867
Cost of revenues
Gross Profit	56,007	365,443	134,493	66,013
Operating expenses
Research and development expenses	(30,576)	(199,510)	(170,155)	(52,103)
Sales and marketing expenses	(14,669)	(95,717)	(53,716)	(21,987)
General and administrative expenses	(17,573)	(114,667)	(189,433)	(13,986)
Total operating expenses	(62,818)	(409,894)	(413,304)	(88,076)
Operating loss	(6,811)	(44,451)	(278,811)	(22,063)
Other income, net	1,140	7,441	4,578	6,069
Loss before income taxes	(5,671)	(37,010)	(274,233)	(15,994)
Income tax expenses	(71)	(466)	(1,364)	(1,610)
Net loss	(5,742)	(37,476)	(275,597)	(17,604)
Accretion to redemption value of contingently redeemable ordinary shares	(1,654)	(10,792)	(821)
Net loss attributable to ordinary shareholders	(7,396)	(48,268)	(276,418)	(17,604)
Net loss	(5,742)	(37,476)	(275,597)	(17,604)
Other comprehensive loss
Foreign currency translation adjustment	(3,350)	(21,861)	0	0
Total other comprehensive loss	(3,350)	(21,861)
Total comprehensive loss	(9,092)	(59,337)	(275,597)	(17,604)
Comprehensive loss attributable to ordinary shareholders	$ (10,746)	¥ (70,129)	¥ (276,418)	¥ (17,604)
LOSS PER SHARE
Basic and diluted | (per share)	$ (0.03)	¥ (0.21)	¥ (1.52)	¥ (0.11)
Loss per ADS (1 ADS represents 5 ordinary shares)
Basic and diluted | (per share)	$ (0.16)	¥ (1.07)	¥ (7.62)	¥ (0.55)
Weighted average number of ordinary shares:
Basic and diluted	226,339,320	226,339,320	181,427,603	160,000,000
Learning services
Revenues
Total revenues	$ 65,972	¥ 430,466	¥ 107,409	¥ 22,010
Cost of revenues
Cost of revenues	(16,537)	(107,904)	(25,793)	(5,919)
Learning materials and devices
Revenues
Total revenues	15,548	101,449	111,247	109,857
Cost of revenues
Cost of revenues	$ (8,976)	¥ (58,568)	¥ (58,370)	¥ (59,935)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) ¥ in Thousands, $ in Thousands	Ordinary sharesUSD ($)shares	Ordinary sharesCNY (¥)shares	Additional paid-in capitalUSD ($)	Additional paid-in capitalCNY (¥)	Accumulated other comprehensive lossUSD ($)	Accumulated other comprehensive lossCNY (¥)	Accumulated deficitUSD ($)	Accumulated deficitCNY (¥)	USD ($)shares	CNY (¥)shares
Balance as of beginning of year at Dec. 31, 2017		¥ 111		¥ 19,941				¥ (55,297)		¥ (35,245)
Balance as of beginning of year (in shares) at Dec. 31, 2017 | shares	160,000,000	160,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss								(17,604)		(17,604)
Distribution to Hongen Education (Note 1)				(10,886)						(10,886)
Foreign currency translation adjustment										0
Balance as of ending of year at Dec. 31, 2018		¥ 111		9,055				(72,901)		(63,735)
Balance as of ending of year (in shares) at Dec. 31, 2018 | shares	160,000,000	160,000,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss								(275,597)		(275,597)
Distribution to Hongen Education (Note 1)				(69,099)						(69,099)
Shares issued for share-based awards (Note 13) (in shares) | shares	55,053,763	55,053,763
Shares issued for share-based awards (Note 13)		¥ 38		3,403						3,441
Share-based compensation (Note13)				270,541						270,541
Foreign currency translation adjustment										0
Accretion of contingently redeemable ordinary shares to redemption value (Note 11)				(821)						(821)
Balance as of ending of year at Dec. 31, 2019		¥ 149		213,079				(348,498)		¥ (135,270)
Balance as of ending of year (in shares) at Dec. 31, 2019 | shares	215,053,763	215,053,763							215,053,763	215,053,763
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss								(37,476)	$ (5,742)	¥ (37,476)
Share-based compensation (Note13)				79,891						79,891
Foreign currency translation adjustment						¥ (21,861)			(3,350)	(21,861)
Share issuance upon IPO net of issuance cost (Note 12)		¥ 27		589,560					90,358	589,587
Share issuance upon IPO net of issuance cost (Note 12) (in shares) | shares	40,250,000	40,250,000
Conversion of contingently redeemable ordinary shares into Class A shares upon IPO (Note 11)		¥ 8		171,572					26,296	171,580
Conversion of contingently redeemable ordinary shares into Class A shares upon IPO (Note 11) (in shares) | shares	11,318,619	11,318,619
Assets transferred under common control, net of tax (Note 15)				6,994						6,994
Accretion of contingently redeemable ordinary shares to redemption value (Note 11)				(10,792)					(1,654)	(10,792)
Balance as of ending of year at Dec. 31, 2020	$ 28	¥ 184	$ 160,966	¥ 1,050,304	$ (3,350)	¥ (21,861)	$ (59,153)	¥ (385,974)	$ 98,491	¥ 642,653
Balance as of ending of year (in shares) at Dec. 31, 2020 | shares	266,622,382	266,622,382

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (5,742)	¥ (37,476)	¥ (275,597)	¥ (17,604)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	431	2,814	597	365
Sharebased compensation	12,244	79,891	270,541
Allowance (reversal of allowance) for doubtful accounts	(24)	(160)	136	116
Provision for inventories	244	1,589	113	78
Non-cash operating lease expenses	1,731	11,297
Changes in operating assets and liabilities:
Accounts receivable	(8,841)	(57,687)	(6,630)	(12,409)
Amounts due from related parties	84	545	(867)
Inventories	338	2,203	8,850	4,617
Prepayments and other current assets	(7,422)	(48,430)	(8,580)	(3,446)
Other noncurrent assets	288	1,879	(2,185)	(10)
Accounts payable	1,724	11,249	(2,832)	(1,955)
Amounts due to related parties	(451)	(2,946)	2,326	1,104
Deferred revenue and customer advances	30,158	196,782	43,678	22,724
Operating lease liabilities	(1,662)	(10,843)
Accrued expenses and other current liabilities	11,076	72,279	13,077	1,916
Net cash (used in) provided by operating activities	34,176	222,986	42,627	(4,504)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment, and intangible assets	(2,439)	(15,906)	(2,391)	(529)
Net cash used in investing activities	(2,439)	(15,906)	(2,391)	(529)
CASH FLOWS FROM FINANCING ACTIVITIES
Distribution to Hongen Education	(10,115)	(66,000)	(3,099)	(10,886)
Net proceeds from issuance of contingently redeemable ordinary shares	6,125	39,967	120,000
Proceeds from the issuance of IPO shares, net of issuance cost	90,358	589,587
Proceeds from assets transferred under common control	1,288	8,405
Proceeds received from issuance of shares for share-based awards			3,441
Proceeds from loans from related parties			2,000	34,700
Repayments of loans from related parties			(63,819)	(13,500)
Net cash provided by financing activities	87,656	571,959	58,523	10,314
Effective of exchange rate changes on cash and cash equivalents	(3,408)	(22,240)
Net change in cash and cash equivalents	115,985	756,799	98,759	5,281
Cash and cash equivalents at the beginning of the year	16,074	104,883	6,124	843
Cash and cash equivalents at the end of the year	132,059	861,682	104,883	¥ 6,124
Supplemental disclosures of cash flow information:
Cash paid for income taxes	2	15
Supplemental disclosures of noncash information:
Consideration for acquisition under common control included in amounts due to related parties			66,000
Purchase of property and equipment, and intangible assets included in accrued expenses and other current liabilities	$ 647	¥ 4,222	¥ 769

ORGANIZATION, CONSOLIDATION AND

ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES	12 Months Ended
	Dec. 31, 2020
ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES
ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES	1. ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES iHuman Inc. (the “Company”) is an exempted company incorporated in the Cayman Islands in September 2019. The Company, its subsidiaries, variable interest entity (“VIE”), and subsidiaries of the VIE are hereinafter collectively referred to as the “Group”. The Group is principally engaged in offering an integrated suite of innovative childhood edutainment services and products to individual users and education organizations. The Group generates its revenue from its interactive and self‑directed online learning services and from learning materials and devices (the “Product Business”) in the childhood education market in the People’s Republic of China (the “PRC”). Restructuring The Group underwent a series of restructurings in 2019 and 2020 to reorganize the Product Business into the Group (the “Onshore Restructuring”) and to establish the Company as the parent company and Tianjin Hongen Perfect Future Education Technology Co., Ltd. (“Tianjin Hongen”, or the “VIE”) as the VIE of the Company (the “Offshore Restructuring”). The Onshore Restructuring and Offshore Restructuring are hereinafter collectively referred to as the “Restructuring”. Onshore Restructuring Tianjin Hongen was established to carry out the Group’s online learning services and commenced operations in March 2016. Prior to the Onshore Restructuring, the operation of the Product Business was carried out by Hongen Education & Technology Co., Ltd. and certain of its subsidiaries (collectively, “Hongen Education”). In November 2019, Tianjin Hongen, through its wholly-owned subsidiary, Beijing Jinhongen Education Technology Co., Ltd. (“Beijing Jinhongen”), acquired certain operating assets and liabilities relating to the Product Business for a cash consideration of RMB66,000 from Hongen Education, which was fully paid in 2020. Upon the completion of the Onshore Restructuring, Tianjin Hongen succeeded all of the Product Business of Hongen Education. As Tianjin Hongen and Hongen Education were under common control of Mr. Michael Yufeng Chi (the “Controlling Shareholder”) through an act-in-concert agreement with his brother, Mr. Hanfeng Chi, for all the periods presented, the Onshore Restructuring was accounted for in a manner similar to a pooling of interest with acquired assets and liabilities recognized at their historical amount in the consolidated financial statements. Accordingly, the Company retrospectively adjusted its consolidated financial statements to include the related assets, liabilities and operations for the years ended December 31, 2008 and 2009. The difference between the cash consideration and the net book value of acquired net assets has been accounted for as a distribution to Hongen Education in the consolidated statements of changes in shareholders’ equity (deficit). Offshore Restructuring In September 2019, the Company issued a total of 215,053,763 ordinary shares to the shareholders of Tianjin Hongen as consideration in exchange for their respective equity interests in Tianjin Hongen. In October 2019, the Company incorporated a wholly-owned subsidiary, iHuman Online Limited (“iHuman Online”) in Hong Kong, and in November 2019, the Company incorporated another wholly-owned subsidiary, Hongen Perfect Future (Tianjin) Investment Co., Ltd. (“Hongen Investment”, or the “WFOE”) in the PRC. In June 2020, the Company, Hongen Investment, Tianjin Hongen and its registered shareholders entered into a series of contractual agreements (the “Contractual Agreements”) pursuant to which the Company became the primary beneficiary of Tianjin Hongen. As the Company and Tianjin Hongen were under common control of the Controlling Shareholder, the Offshore Restructuring was also accounted for in a manner similar to a pooling of interest as if the corporate structure of the Company had been in existence since the beginning of the periods presented. Furthermore, the ordinary shares of the Company were recorded at their original issue price, and have been retrospectively presented to reflect the historical equity transactions of the Group. On October 8, 2020, the Company completed its initial public offering (“IPO”) on the New York Stock Exchange (Note 12). The Company’s principal subsidiaries, VIE and the VIE’s subsidiaries are as follows: Percentage of equity interest Date of Place of attributable to Name establishment establishment the Company Principal activities Subsidiaries iHuman Online October 2, 2019 HK 100% Investment holding Hongen Investment November 11, 2019 PRC 100% Management and technical consulting Variable interest entity: Tianjin Hongen March 30, 2016 PRC Nil Education services Subsidiaries of the VIE: Beijing Hongen Perfect Future Education Technology Co., Ltd. July 1, 2016 PRC Nil Education services Tianjin Hongen Perfect Technology Development Co., Ltd. August 26, 2019 PRC Nil Education services Beijing Jinhongen September 4, 2019 PRC Nil Education services and sales of learning materials and devices To comply with PRC laws and regulations which has certain limitation of foreign control of companies that engage in value‑added telecommunication services and certain other businesses, the Group primarily conducts its business in the PRC through its VIE and the VIE’s subsidiaries. The equity interests of the VIE are legally held by the PRC shareholders (the “Nominee Shareholders”). Despite the lack of technical majority ownership, there exists a parent‑subsidiary relationship between the Company and the VIE through the Company’s effective control of the VIE through the Contractual Agreements. Through the Contractual Agreements, the Nominee Shareholders effectively assigned all of their voting rights underlying their equity interests in the VIE to the WFOE, who immediately assigned the voting rights underlying their equity interests in the VIE to the Company. Therefore, the Company has the power to direct the activities of the VIE that most significantly impact its economic performance. The Company also has the ability and obligation to absorb substantially all of the profits and all the expected losses of the VIE that potentially could be significant to the VIE. Based on the above, the Company consolidates the VIE in accordance with SEC Regulation SX‑3A‑02 and Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). The following is a summary of the Contractual Agreements: Powers of Attorneys Pursuant to the powers of attorneys executed by the Nominee Shareholders, the Nominee Shareholders agreed to entrust to Hongen Investment an irrevocable proxy to exercise all of their rights as shareholders of Tianjin Hongen, the VIE, and to approve, on behalf of the Nominee Shareholders, all related legal documents pertinent to the exercise of their rights in their capacity as the shareholders of Tianjin Hongen. Hongen Investment is also entitled to transfer or assign its voting rights to any other person or entity at its own discretion and without giving prior notice to the Nominee Shareholders or obtaining their consent. The powers of attorneys remains valid until the exclusive management services and business cooperation agreement expires or terminates. Exclusive Call Option Agreement Pursuant to the exclusive call option agreement among Hongen Investment, Tianjin Hongen and its Nominee Shareholders, the Nominee Shareholders irrevocably granted Hongen Investment or its designee(s) an exclusive call option to purchase, when and to the extent permitted under PRC laws, all or part of the equity interests in Tianjin Hongen. Hongen Investment has the sole discretion to decide when to exercise the option, whether in part or full. The exercise price of the call option to purchase all or part of the equity interests in Tianjin Hongen or assets held by Tianjin Hongen will be the minimum amount of consideration permitted under the then-applicable PRC laws. Without the prior consent of Hongen Investment, Tianjin Hongen and its Nominee Shareholders shall not: (i) amend the articles of association, (ii) increase or decrease the registered capital, (iii) sell or otherwise dispose of their assets or beneficial interest, (iv) create or allow any encumbrance on their assets or other beneficial interests, (v) extend any loans to third parties, (vi) enter into any material contracts (except those contracts entered into in the ordinary course of business), (vii) merge with or acquire any other persons or make any investments, or (viii) distribute dividends to their shareholders. The exclusive call option agreement will remain in effect until all the equity interests held by Nominee Shareholders or the assets held by Tianjin Hongen are transferred to Hongen Investment or its designee(s). Hongen Investment may terminate the exclusive call option agreement at its sole discretion, whereas under no circumstances may Tianjin Hongen or its Nominee Shareholders terminate this agreement. Any proceeds received by the Nominee Shareholders from the exercise of the option and distribution of profits or dividends, shall be remitted to Hongen Investment or its designee(s), to the extent permitted under PRC laws. Exclusive Management Services and Business Cooperation Agreement Pursuant to the exclusive management services and business cooperation agreement between Hongen Investment, Tianjin Hongen and the Nominee Shareholders, Hongen Investment has the exclusive right to provide technical and consulting services to Tianjin Hongen and its subsidiaries related to the education business, including but not limited to education management consultancy services, permission of intellectual property rights, technical support and business support. Without the prior written consent of Hongen Investment, Tianjin Hongen may not accept any services subject to this exclusive management services and business cooperation agreement from any third party, while Hongen Investment has the right to designate any party to provide such services. In return, Tianjin Hongen agrees to pay a service fee to Hongen Investment. Hongen Investment has the right to unilaterally adjust the service fee. The exclusive management services and business cooperation agreement is effective within the operating period of Tianjin Hongen. Hongen Investment may terminate this agreement unilaterally, whereas under no circumstances can the Tianjin Hongen and the Nominee Shareholders terminate this agreement. Equity Interest Pledge Agreement Under the equity interest pledge agreement among Hongen Investment, Tianjin Hongen and its Nominee Shareholders, the Nominee Shareholders have pledged all of their equity interests in Tianjin Hongen to Hongen Investment to guarantee the performance of Tianjin Hongen and their obligations under the Contractual Agreements described above. During the term of the equity interest pledge agreement, Hongen Investment has the right to receive all of Tianjin Hongen’s dividends and profits distributed on the pledged equity. In the event of a breach by Tianjin Hongen or any of its Nominee Shareholders of the contractual obligations under the equity interest pledge agreement, Hongen Investment or its designee(s), as pledgee, will have the right to purchase, auction or sell all or part of the pledged equity interests in Tianjin Hongen and will have priority in receiving the proceeds from such disposal. Tianjin Hongen and its Nominee Shareholders, undertake that, without the prior written consent of Hongen Investment, they will not transfer, create or allow any encumbrance on the pledged equity interests. The equity interest pledge agreement will be valid until Tianjin Hongen and its Nominee Shareholders fulfill all contractual obligations under the Contractual Agreements. Financial Support Letter Pursuant to the financial support letter, the Company is obligated and hereby undertakes to provide unlimited financial support to Tianjin Hongen, to the extent permissible under the applicable PRC laws and regulations. The Company agrees to forego the right to seek repayment in the event if Tianjin Hongen is unable to repay such funding. Resolution of the Company’s board of directors The Company’s board of directors resolved that the rights under the powers of attorneys and the exclusive call option agreement were assigned to any officer authorized by the Company’s board of directors. In the opinion of the Company’s legal counsel, (i) the ownership structures of the VIE and WFOE, both currently and immediately after giving effect to the initial public offering (“IPO”), are not in violation of applicable PRC laws and regulations currently in effect; and (ii) the Contractual Agreements are valid, binding and enforceable, and will not result in any violation of applicable PRC laws and regulations currently in effect; (iii) the financial support letter issued by the Company to the VIE, and the resolutions are valid in accordance with the articles of association of the Company. However, uncertainties in the PRC legal system could cause relevant regulatory authorities to find the current Contractual Agreements and businesses to be in violation of any existing or future PRC laws or regulations and could limit the Company’s ability to enforce its rights under these Contractual Agreements. Furthermore, the Nominee Shareholders of the VIE may have interests that are different from those of the Company, which could potentially increase the risk that they would seek to act contrary to the terms of the Contractual Agreements with the VIE. In addition, if the Nominee Shareholders will not remain the shareholders of the VIE, breach, or cause the VIE to breach, or refuse to renew, the existing Contractual Agreements the Company has with them and the VIE, the Company may not be able to effectively control the VIE and receive economic benefits from it, which may result in deconsolidation of the VIE. In addition, if the current structure or any of the Contractual Agreements were found to be in violation of any existing or future PRC laws or regulations, the Company may be subject to penalties, including but not be limited to, revocation of business and operating licenses, discontinuing or restricting business operations, restricting the Company’s right to collect revenues, temporary or permanent blocking of the Company’s internet platforms, restructuring of the Company’s operations, imposition of additional conditions or requirements with which the Company may not be able to comply, or other regulatory or enforcement actions against the Company. As of December 31, 2019 and 2020, there were no pledge or collateralization of the VIE and its subsidiaries’ assets that can only be used to settle their obligations. All liabilities of the VIE and its subsidiaries are without recourse to the Company. The table set forth the assets and liabilities of the VIE and VIE’s subsidiaries included in the Group’s consolidated balance sheets: As of December 31, 2019 2020 2020 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 104,883 247,253 37,893 Accounts receivable, net of allowance of RMB316 and RMB156 (US$24) as of December 31, 2019 and 2020, respectively 20,118 77,965 11,949 Amounts due from related parties 953 5,463 837 Inventories, net 20,665 16,873 2,586 Prepayments and other current assets 16,529 64,587 9,898 Total current assets 163,148 412,141 63,163 Non‑current assets Property and equipment, net 2,487 6,390 979 Intangible assets, net 103 10,582 1,622 Operating lease right‑of‑use assets — 6,521 999 Other non‑current assets 2,663 784 121 Total non‑current assets 5,253 24,277 3,721 Total assets 168,401 436,418 66,884 LIABILITIES Current liabilities Accounts payable 10,302 19,980 3,062 Amounts due to related parties 69,431 485 74 Deferred revenue and customer advances 71,831 268,613 41,167 Accrued expenses and other current liabilities 31,200 95,200 14,590 Current operating lease liabilities — 1,544 237 Total current liabilities 182,764 385,822 59,130 Non‑current liabilities Non‑current operating lease liabilities — 5,070 777 Total non‑current liabilities — 5,070 777 Total liabilities 182,764 390,892 59,907 Commitments and contingencies The VIE and VIE’s subsidiaries’ net liability balance was RMB14,363 as of December 31, 2019, and net asset balance was RMB45,526 (US$6,977) as of December 31, 2020. The table sets forth the results of operations of the VIE and VIE’s subsidiaries included in the Group’s consolidated statements of comprehensive loss for years ended December 31, 2018, 2019 and 2020, respectively: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Revenue 131,867 218,656 531,915 81,520 Net loss (17,604) (275,511) (23,486) (3,599) The table sets forth the cash flows of the VIE and VIE’s subsidiaries included in the Group’s consolidated statements of cash flows for the years ended December 31, 2018, 2019 and 2020, respectively: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Net cash (used in) provided by operating activities (4,504) 42,627 218,765 33,527 Net cash used in investing activities (529) (2,391) (15,622) (2,394) Net cash provided by (used in) financing activities 10,314 58,523 (60,773) (9,314) Net increase in cash and cash equivalents 5,281 98,759 142,370 21,819 Impact of COVID-19 During the year ended December 31, 2020, the Group’s operations has been affected by the COVID-19 pandemic. The sales of learning materials and devices has been negatively impacted by the COVID-19 outbreak, as education organizations, which are the major customers of the Group's learning materials and devices, have undergone temporary closure in early 2020. The Group has considered the impact and provided additional credit losses for accounts receivable and reserves for inventories. There are still uncertainties of COVID-19’s future impact, and the extent of the impact will depend on a number of factors, including the duration and severity of COVID-19, the development and progress of distribution of COVID-19 vaccine and other medical treatment, the potential change in customer behavior, the actions taken by government authorities, particularly to contain the outbreak, stimulate the economy to improve business condition, almost all of which are beyond the Company’s control. As a result, certain of the Company’s estimates and assumptions, including the allowance for credit losses, the valuation of inventories and long-lived assets subject to impairment assessments, require significant judgments and carry a higher degree of variabilities and volatilities that could result in material changes to the Group’s current estimates in future periods.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Principles of consolidation The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries, the VIE and the VIE’s subsidiaries for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but are not limited to, allowance for doubtful accounts, reserve for inventories, fair value of financial instruments, useful lives of long-lived assets, impairment of long-lived assets, realization of deferred tax assets, incremental borrowing rate for leases, expected contract period for indefinite term subscriptions, determination of the stand-alone selling price, return allowances and share-based compensation. Prior to the restructuring, the results of the Product Business are determined by using a combination of specific identification of revenues and certain costs as well as a reasonable allocation of the remaining costs using applicable cost drivers where specific identification is not determinable. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates. Convenience translation Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.525 per US$1.00 on December 31, 2020 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate. Foreign currency The Group’s financial information is presented in Renminbi (“RMB”). The functional currency of the Company and its subsidiary in Hong Kong is U.S. dollars (“US$”). The functional currency of WFOE and subsidiaries of the WFOE, the VIE and subsidiaries of the VIE located in the PRC is RMB. Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss. The Group uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in "Accumulated other comprehensive loss", a component of shareholders' equity (deficit). Total foreign currency translation adjustment, were nil, nil and RMB21,861 (US$3,350) as of December 31, 2018, 2019 and 2020. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, time deposits and highly liquid investments placed with banks which are unrestricted as to withdrawal or use and have original maturities of less than three months. Accounts receivable and allowance for doubtful accounts Accounts receivable represents uncollected payments from customers for (i) completed transactions where customer payments settled by mobile app stores and third-party online channels but not yet remitted to the Group, or (ii) completed shipments where the Group charges customers and payment has not been received. Accounts receivable are carried at net realizable value. An allowance for doubtful accounts is recorded when collection of the full amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers specific evidence including the aging of the receivable, the customer’s payment history, its current credit-worthiness and current economic trends. Accounts receivable are written off when deemed uncollectible. Inventories, net Inventories primarily consisting of products available for sale are stated at the lower of cost or net realizable value. Cost of inventory is determined using the weighted average cost method. Inventory reserve is recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs are recorded in cost of revenues in the consolidated statements of comprehensive loss. As of December 31, 2019 and 2020, the Group had inventories cost of RMB21,742 and RMB19,539 (US$2,994), and the related inventory reserve was RMB1,077 and RMB2,666 (US$408), respectively . Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated Useful Life Electronic equipment 4 years Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. Intangible assets, net Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with finite useful lives are amortized using a straight‑line method of amortization that reflects the estimated pattern in which the economic benefits of the intangible asset are to be consumed. The estimated useful life for the intangible assets is as follows: Category Estimated Useful Life Copyrights 3-10 years Purchased software 1-5 years Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. For all periods presented, there was no impairment of any of the Group’s long-lived assets. Segment reporting In accordance with ASC 280-10, Segment Reporting: Overall (“ASC 280”), operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. After the acquisition of the Product Business under common control, the Group began to integrate the online learning service with the Product Business which creates significant synergies across various aspects of the Group’ business operations. The Group’s CODM has been identified as the Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one operating segment. The Group does not distinguish between markets or segments for purposes of internal reporting. The majority of the Group’s revenues for the years ended December 31, 2018, 2019 and 2020 were generated from the PRC. As of December 31, 2019 and 2020, all of the long-lived assets of the Group are located in the PRC, and therefore, no geographical segments are presented. Revenue recognition Effective January 1, 2018, the Group elected to early adopt the requirements of ASC 606, Revenue from Contracts with Customers (“ASC 606”) using the full retrospective method. The Group applies the five-step model outlined in ASC 606. The Group accounts for a contract when it has approval and commitment from the customer, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The adoption of ASC 606 did not have a material impact on the Group’s accumulated deficit balance as of January 1, 2018. The Group has elected to exclude from revenue sales taxes and other similar taxes that are both imposed on and are concurrent with revenue producing transactions. Therefore, revenues are recognized net of value added taxes (“VAT”). Learning services The majority of the Group’s learning service revenue is generated from non-cancellable subscriptions on its various online learning applications. The non-cancellable subscription contracts provide customers the access to hosted software over a contract term without the customer taking possession of the content software. Subscription revenue is recognized ratably over the contract period as the performance obligation is satisfied. The learning subscription services are sold in short term periods, typically no more than 12 months. Certain learning subscription have contracts with no fixed duration and are marketed as indefinite term subscriptions. For these indefinite term subscriptions, the Group estimates the expected contract period based on historical usage patterns and recognizes related revenue over the expected contract period. The Group also offers its customers to purchase specified completed digital contents on certain learning applications. The completed digital contents can be downloaded and used offline indefinitely. Therefore, customers take possession of these contents, and revenues from sales of completed digital content is recognized at a point in time when the content is made available for the customer’s use. Learning materials and devices The Group sells learning materials and devices to individual users, education organizations and distributors. Revenue from learning materials and devices is recognized when control of the promised goods is transferred to the customer, at an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods. The Group offers certain customers with rights of return. These rights are accounted for as variable consideration when estimating the amount of revenue to be recognized by utilizing expected value method. As of December 31, 2019 and 2020, the liabilities for return allowances and rights to recover products from customers associated with the Group’s liabilities for return allowances were not material. Some contracts with customers include promise to transfer both learning service and learning materials and devices. The Group has determined that the learning material and devices are separate performance obligations under ASC 606, as customers can benefit from the learning material and devices on their own and our promise to deliver learning material and devices is separately identifiable from the learning services. Revenue is allocated to each performance obligation based on its relative standalone selling price (“SSP”). In instances where stand-alone selling price is not directly observable, considerations are allocated using estimated selling prices and expected cost plus margin approach. Determining the stand-alone selling price of each separate unit may require significant judgments, and significant assumptions and estimates have been made in estimating the relative selling price of each single-element. Deferred revenue and customer advances Timing of revenue recognition may differ from the timing of invoicing to customers and cash collection. For certain revenue contracts, customers are required to pay before the services and goods are delivered to the customer. The Group recognizes the excess of payments received as compared to the recognized revenue as deferred revenue or customer advances, which primarily consist of unearned revenue related to subscription services which is recognized ratably over the subscription period, and advanced payments received from customers for goods to be delivered and services to be provided. Payment terms and conditions vary by contract type and customer. For the learning services and sales of learning materials and devices to individual users, immediate payment upon purchase is required. Payments made through certain third-party payment service providers are collected on a real time basis, and payments made through mobile app stores and other third party online channels are generally collected within 60 days. For sales of learning materials and devices to education organizations and distributors, payment terms generally require advanced payments or payment within 60 days. In instances where the timing of revenue recognition differs from the timing of payment, the Group has determined that its contracts do not include a significant financing component. Practical expedients The Group has utilized the practical expedient available under ASC 606-10-50-14 to not to disclose information about its remaining performance obligations because the Group’s contracts with customers generally have an expected duration of no more than one year. Assets recognized from costs to obtain a contract with a customer: The Group has determined that certain costs, primarily channel costs associated with sales made in mobile app stores, meet the requirements to be capitalized as costs of obtaining contracts. The Group recognizes an asset for these costs incurred for non-cancellable subscription contracts in “Prepayments and other current assets” in the consolidated balance sheets. The amortization of these costs over the applicable subscription term are included in cost of revenues. Cost of revenues Cost of revenues primarily includes costs incurred to support and maintain online learning apps including channel costs, product costs, freight, rental costs, salaries and benefits for employees directly involved in revenue generation activities. Research and development expenses Research and development expenses primarily consist of salaries, benefits and share-based compensation for research and development personnel, and third-party outsourcing service provider costs. The Group expenses research and development costs as they are incurred. Advertising expenditures Advertising costs are expensed when incurred and are included in sales and marketing expenses in the consolidated statements of comprehensive loss. The advertising expenses were RMB3,015, RMB4,593 and RMB63,195 (US$9,685) for the years ended December 31, 2018, 2019 and 2020, respectively. Employee benefit expenses All eligible employees of the Group in the PRC are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the qualified employees’ salaries and to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed. The Group recorded employee benefit expenses of RMB14,503, RMB22,107 and RMB24,073 (US$3,689) for the years ended December 31, 2018, 2019 and 2020, respectively. The Group has no further payment obligations once the contributions have been paid. Share-based compensation The Groups applies ASC 718, Compensation—Stock Compensation (“ASC 718”), to account for its employee share-based payments. In accordance with ASC 718, the Group determines whether an award should be accounted for as a liability award or equity award. All the Group’s share-based awards to employees were classified as equity awards and are recognized in the consolidated financial statements based on their grant date fair values. The Group early adopted ASU No. 2018-7, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting (“ASU 2018-7”) on January 1, 2018 and applies ASC 718 to account for share-based payments for acquiring goods and services from non-employees at grant date fair value. The Group has elected to recognize share-based compensation using the accelerated method, for all share-based awards granted with graded vesting or cliff vesting based on service conditions and performance conditions and only if performance-based conditions are considered probable to be satisfied. The Group has adopted ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting on January 1, 2018 and elected to account for forfeitures as they occur. The Group, with the assistance of an independent valuation firm, determined the fair value of the share options. Leases The Group adopted ASU No. 2016‑02, Leases (Topic 842) and all subsequent ASU’s relating to this Topic (collectively, “ASC 842”) on January 1, 2020 using the modified retrospective method and did not restate comparable periods. The Group elected the package of practical expedients permitted under the transition guidance, which allowed the Group to carry forward the historical lease classification for any expired or existing contract and the accounting for the initial direct costs on those leases on the adoption date. The Group also elected the practical expedient of the short‑term lease exemption for contracts with lease terms of 12 months or less. Upon adoption, the Group recognized right‑of‑use (“ROU”) assets of RMB22,852 and total lease liabilities (including current and non‑current) of RMB22,492 for operating leases as of January 1, 2020. The impact of adopting ASC 842 on the Group’s opening accumulated deficit and current year net loss is not material. The Group leases real estate property under operating leases. ROU assets are recognized at the amount of the lease liabilities, adjusted for cumulative prepayments and lease incentives, if any. Lease liabilities are recognized at the present value of the lease payments over the lease term at the commencement date. As the rate implicit in the Group’s leases are not readily available, the Group uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate reflects the fixed rate at which the Group could borrow on a collateralized basis, the amount of the lease payments in the same currency, for a similar term and in a similar economic environment. The Group recognizes operating lease expense on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise. The Group accounts termination of a lease before the expiration of the lease term by removing the right-of-use asset and the lease liability, with profit or loss recognized for the difference if any. As of December 31, 2020, the Group recognized net operating lease ROU assets of RMB6,521 (US$999) and total lease liabilities of RMB6,614 (US$1,014), comprised of current portion of RMB1,544 (US$237) reported in current operating lease liabilities and non-current portion of RMB5,070 (US$777) reported in non-current operating lease liabilities. The total lease cost for the year ended December 31, 2020 was RMB11,432 (US$1,752), comprised of operating lease cost and short-term lease cost of RMB11,297 (US$1,731) and RMB135 (US$21), respectively. The weighted-average remaining lease term and weighted average incremental borrowing rate as of December 31, 2020 was 5.07 years and 8.01%, respectively. The undiscounted future minimum payments under the Group's operating lease liabilities and reconciliation to the operating lease liabilities recognized on the consolidated balance sheets was as below: As of December 31, 2020 RMB US$ 2021 1,601 245 2022 1,451 222 2023 1,563 240 2024 1,563 240 2025 1,327 203 Thereafter 508 78 Total lease payments 8,013 1,228 Less: Imputed interest 1,399 214 Present value of lease liabilities 6,614 1,014 Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"). Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. In accordance with the provisions of ASC 740, the Group recognizes in its consolidated financial statements the impact of a tax position if a tax return position or future 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. The Group's estimated liability for unrecognized tax benefits, if any, will be recorded in the "other non-current liabilities" in the accompanying consolidated financial statements is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group's estimates. As each audit is concluded, adjustments, if any, are recorded in the Group's consolidated financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. Loss per share In accordance with ASC 260, Earnings Per Share , basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net loss is allocated between ordinary shares and other participating securities based on their participating rights. The Company’s contingently redeemable ordinary shares are participating securities. For the year ended December 31, 2019, the computation of basic loss per share using the two-class method is not applicable as the Company is in a net loss position and the participating securities do not have contractual rights and obligations to share in the losses of the Company. For the year ended December 31, 2020, the two-class method is applicable because the Company has two classes of ordinary shares outstanding, Class A and Class B ordinary shares, respectively. Diluted loss per share is calculated by dividing net loss 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 the contingently redeemable ordinary shares using the if‑converted method; and ordinary shares issuable upon the exercise of share options, using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted per share if their effects would be anti‑dilutive. Share options with performance conditions are considered contingently issuable shares and are included in the computation of diluted loss per share to the extent that the performance conditions are met such that the ordinary shares will be issued at the end of the reporting period, assuming it was the end of the contingency period. Fair value measurements Financial instruments of the Group primarily include cash and cash equivalents, accounts receivable, amounts due from and due to related parties, accounts payable, certain other current and non‑current assets and liabilities, and contingently redeemable ordinary shares. The Group applies ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. The contingently redeemable ordinary shares were initially recorded at issue price net of issuance costs. As it relates to the contingently redeemable ordinary shares, the Group recognizes changes in the redemption value immediately as they occur and adjusts the carrying value of the contingently redeemable ordinary shares to equal the redemption value at the end of each reporting period. The carrying values of the remaining financial instruments approximate their fair values due to their short‑term maturities. ASC 820 establishes a three‑tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: 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. ASC 820 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. There were no assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2020. Comprehensive loss Comprehensive loss is defined to include all changes in equity deficit of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss includes net loss and foreign currency translation adjustment of the Group. Recent accounting pronouncements The Group is an emerging growth company (“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an EGC can take advantage of extended transition periods for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. The Group elected to take advantage of the extended transition periods. However, this election will not apply should the Group cease to be classified as an EGC. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. The standard will replace the “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. For U.S. SEC filers that are not smaller reporting companies, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, ASU 2016 -13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Group is currently evaluating the impact on the consolidated financial statements of adopting this guidance. In December 2019 the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . This update eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This guidance is effective for public business entities (PBEs) for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance.

CONCENTRATION OF RISKS

CONCENTRATION OF RISKS	12 Months Ended
	Dec. 31, 2020
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS	3. CONCENTRATION OF RISKS Business, customer, political, social and economic risks The Group participates in a dynamic and competitive high technology industry and believes that changes in any of the following areas could have a material adverse effect on the Group’s future financial position, results of operations or cash flows: changes in the overall demand for services; competitive pressures due to existing competitors; and new trends in new technologies and industry standards; changes in certain strategic relationships or customer relationships; regulatory considerations; and risks associated with the Group’s ability to attract and retain employees necessary to support its growth. The Group’s operations could be adversely affected by significant political, economic and social uncertainties in the PRC. The Group did not have customers accounted for more than 10% of the total revenue for the years ended December 31, 2018, 2019 and 2020. Concentration of credit risk Assets that potentially subject the Group to significant concentration of credit risk primarily consist of cash and cash equivalents and accounts receivable. The Group expects that there is no significant credit risk associated with cash and cash equivalents, which were held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries, the VIE and subsidiaries of the VIE are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality. Accounts receivable are typically unsecured and denominated in RMB. Accounts receivable primarily comprise of net cash to be collected from reputable mobile app stores, third-party online channels, education organizations and distributors. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. Currency convertibility risk The Group transacts a majority of its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (“PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into U.S. dollar or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. Additionally, the value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. Foreign currency exchange rate risk From July 21, 2005, the RMB is per mitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. For RMB against U.S. dollar, there was depreciation of 5.5% and 1.3% during the years ended December 31, 2018 and 2019 and appreciation of 6.3% during the year ended December 31, 2020, respectively. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. To the extent that the Group nee ds to convert U.S. dollar into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Group would receive from the conversion. Conversely, if the Group decides to convert RMB into U.S. dollar for the purpose of making payments for dividends on ordinary shares, strategic acquisitions or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Group. In addition, a significant depreciation of the RMB against the U.S. dollar may significantly reduce the U.S. dollar equivalent of the Group’s earnings or losses.

REVENUE AND DEFERRED REVENUE

REVENUE AND DEFERRED REVENUE	12 Months Ended
	Dec. 31, 2020
REVENUE AND DEFERRED REVENUE
REVENUE AND DEFERRED REVENUE	4. REVENUE AND DEFERRED REVENUE The following table presents the Group’s revenues from contracts with customers disaggregated by material revenue category: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Learning services: Recognized over time 20,805 106,163 429,633 65,844 Recognized at a point in time 1,205 1,246 833 128 22,010 107,409 430,466 65,972 Learning materials and devices recognized at a point in time 109,857 111,247 101,449 15,548 Total revenues 131,867 218,656 531,915 81,520 Contract cost Deferred channel costs were recorded under “Prepayment and other current assets” (Note 6). For the years ended December 31, 2018, 2019 and 2020, the Group recognized RMB4,991, RMB22,381 and RMB89,444 (US$13,708), respectively, of amortization of deferred channel costs as “Cost of revenues”. There was no impairment recognized to the deferred channel costs during the years ended December 31, 2018, 2019 and 2020. Deferred revenue and customer advances Deferred revenue and customer advances primarily consist of deferred revenue from learning services and advanced consideration received from customers for the sales of learning materials and devices, which are recognized as contract liability until services are provided to the customer and products are delivered at customers. Revenue recognized during the year ended December 31, 2020 that was included in the deferred revenue and customer advances balance of RMB71,831 at January 1, 2020 was RMB69,234 (US$10,611).

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2020
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE	5. ACCOUNTS RECEIVABLE As of December 31, 2019 2020 2020 RMB RMB US$ Accounts receivable 20,434 78,121 11,973 Allowance for doubtful accounts (316) (156) (24) Accounts receivable, net 20,118 77,965 11,949 The movements in the allowance for doubtful accounts were as follows: For the year ended December 31, 2019 2020 2020 RMB RMB US$ Balance at beginning of the year 180 316 48 Provisions/(reversals) 136 (160) (24) Balance at end of the year 316 156 24

PREPAYMENTS AND OTHER CURRENT A

PREPAYMENTS AND OTHER CURRENT ASSETS	12 Months Ended
	Dec. 31, 2020
PREPAYMENTS AND OTHER CURRENT ASSETS
PREPAYMENTS AND OTHER CURRENT ASSETS	6. PREPAYMENTS AND OTHER CURRENT ASSETS As of December 31, 2019 2020 2020 RMB RMB US$ Deferred channel costs 12,890 56,335 8,634 Prepaid taxes 2,069 3,433 526 Advances to suppliers 627 136 21 Prepaid expenses 369 28 4 Rental deposits 12 2,636 404 Others 562 2,051 314 16,529 64,619 9,903

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2020
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	7. PROPERTY AND EQUIPMENT As of December 31, 2019 2020 2020 RMB RMB US$ Electronic equipment 3,530 8,793 1,348 Less: accumulated depreciation (1,043) (2,403) (369) Property and equipment, net 2,487 6,390 979 Depreciation expense for the years ended December 31, 2018, 2019 and 2020 was RMB305, RMB511 and RMB1,360 (US$208), respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2020
INTANGIBLE ASSETS
INTANGIBLE ASSETS	8. INTANGIBLE ASSETS As of December 31, 2019 2020 2020 RMB RMB US$ Copyrights 167 7,375 1,130 Purchased software — 5,570 854 Less: accumulated amortization (64) (1,156) (177) Intangible assets, net 103 11,789 1,807 The Group recorded amortization expense of RMB60, RMB86 and RMB1,454 (US$223) for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, estimated amortization expense of the existing intangible assets for each of the next five years is RMB2,324 (US$356), RMB2,025 (US$310), RMB1,768 (US$271), RMB1,482 (US$227) and RMB1,054 (US$162), respectively.

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2020
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2019 2020 2020 RMB RMB US$ Payroll payable 23,087 55,176 8,456 Accrued expenses 3,336 29,063 4,454 Tax payable 3,197 17,391 2,665 Deposits 700 2,061 316 Others 880 3,338 512 31,200 107,029 16,403

TAXATION

TAXATION	12 Months Ended
	Dec. 31, 2020
TAXATION
TAXATION	10. TAXATION Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong iHuman Online is incorporated in Hong Kong and is subject to Hong Kong Profits Tax, which is currently imposed at the rate of 16.5%, with half-rate of 8.25% that may be applied for the first HK$2 million of assessable profits for years of assessment beginning on or after April 1, 2018. No provision for Hong Kong profits tax was made in the consolidated financial stateme nts as iHuman Online had no assessable income for any of the periods presented. PRC Effective from January 1, 2008, the PRC's statutory, Enterprise Income Tax ("EIT") rate is 25%. In accordance with the implementation rules of EIT Law, a qualified "High and New Technology Enterprise" ("HNTE") is eligible for a preferential tax rate of 15% and a "Software Enterprise" ("SE") is entitled to a two-year income tax exemption starting from the first profit making year, followed by a reduction of half the applicable tax rate for the subsequent three years. The HNTE certificate is effective for a period of three years. An entity must file required supporting documents with the tax authority and ensure fulfillment of the relevant HNTE criteria before using the preferential rate. An entity could re-apply for the HNTE certificate when the prior certificate expires. The SE is subject to relevant governmental authorities' annual assessment based on self-assessment supporting documents filed with the tax authorities each year. Tianjin Hongen expect to be qualified as SE, is entitled to an exemption from the enterprise income tax for two years beginning from 2020, and a reduced tax rate of 12.5% for the subsequent three years. The qualification as a SE is subject to annual evaluation by the relevant authorities in China. In 2019, Beijing Jinhongen was qualified for the requirements of small and micro-sized enterprise, and it would be eligible for 75% reduction for its first RMB1,000 of annual taxable income, and 50% of reduction for its annual taxable income between RMB1,000 and RMB3,000. Therefore, Beijing Jinhongen was subject to the applicable tax rate of 20% in 2019. In 2020, Beijing Jinhongen was subject to the 25% EIT rate. The other PRC subsidiaries and consolidated VIE and VIE's subsidiaries are subject to the 25% EIT rate. Dividends, interests, rent or royalties payable by the Company’s PRC subsidiaries, to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax. The current and deferred components of income tax expense appearing in the consolidated statements of comprehensive loss are as follows: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Current income tax expenses 1,610 1,364 466 71 Deferred income tax expenses — — — — Total income tax expenses 1,610 1,364 466 71 A reconciliation of the differences between the statutory tax rate and the effective tax rate for enterprise income tax is as follows: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Loss before income tax (15,994) (274,233) (37,010) (5,671) Income tax computed at the PRC statutory tax rate of 25% (3,999) (68,558) (9,253) (1,418) Effect of differing tax rates in different jurisdictions — — 1,596 245 Effect of tax rate changes on deferred taxes — — 50,950 7,808 Research and development super‑deduction (9,596) (8,774) (12,707) (1,947) Shared‑based compensation expenses — 67,635 19,913 3,051 Non‑deductible expenses 56 554 3,678 564 Effect of PRC preferential tax rates — — (22,458) (3,442) Change in valuation allowance 15,148 10,342 (31,269) (4,792) Others 1 165 16 2 Income tax expenses 1,610 1,364 466 71 Income tax expense related to the Product Business is included in above effective tax rate reconciliation, in particular, deferred tax items not preserved due to Onshore Restructuring are included in above “valuation allowance” in the amounts of RMB1,340 and RMB(924) for the years ended December 31, 2018 and 2019, respectively. Deferred tax The significant components of the Group’s deferred tax assets are as follows: As of December 31, 2019 2020 2020 RMB RMB US$ Deferred tax assets Tax loss carry forward 25,830 6,520 999 Deferred revenue and customer advances 13,001 721 110 Lease liabilities recognized under ASC842 — 1,630 250 Others 62 383 59 Less: valuation allowance (38,893) (7,624) (1,168) — 1,630 250 Deferred tax liabilities ROU recognized under ASC842 — (1,630) (250) — (1,630) (250) Presentation in the consolidated balance sheets Deferred tax assets, net — — — Deferred tax liabilities, net — — — Net deferred tax assets, net — — — The Company operates through its WFOE, VIE and the VIE’s subsidiaries and valuation allowance is considered on an individual entity basis. The Group recorded valuation allowance against deferred tax assets of those entities that were in a three year cumulative financial loss as of December 31, 2019 and 2020. In making such determination, the Company also evaluated a variety of factors including the Company’s operating history, accumulated deficit, forecasting profits, existence of taxable temporary differences and reversal periods. As of December 31, 2020, the Group had taxable losses of approximately RMB25,983 (US$3,982) mainly deriving from entities in the PRC. The tax losses in the PRC can be carried forward for five years to offset future taxable profit. The tax losses of entities in the PRC will begin to expire in 2022, if not utilized. Unrecognized Tax Benefit The Group evaluated its income tax uncertainty under ASC 740. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. The Group elects to classify interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the consolidated statements of comprehensive loss. As of and for the years ended December 31, 2018, 2019 and 2020, there were no significant impact from tax uncertainties on the Group’s financial position and result of operations. The Group does not expect the amount of unrecognized tax benefits would increase significantly in the next 12 months. In general, the PRC tax authority has up to five years to conduct examinations of the tax filings. Accordingly, as of December 31, 2020, the tax years ended December 31, 2016 through period ended as of the reporting date for the Company’s PRC entities remain open to examination by the PRC tax authorities.

CONTINGENTLY REDEEMABLE ORDINAR

CONTINGENTLY REDEEMABLE ORDINARY SHARES	12 Months Ended
	Dec. 31, 2020
CONTINGENTLY REDEEMABLE ORDINARY SHARES
CONTINGENTLY REDEEMABLE ORDINARY SHARES	11. CONTINGENTLY REDEEMABLE ORDINARY SHARES On December 6, 2019, the Group issued 11,318,619 contingently redeemable ordinary shares with preferential rights (the “Contingently Redeemable Ordinary Shares”) to a third-party investor (the “Investor Shareholder”), of which RMB120,000 and RMB40,000 were received on December 6, 2019 and May 18, 2020, respectively. All of the Contingently Redeemable Ordinary Shares were converted to 11,318,619 Class A ordinary shares upon the completion of the Group’s IPO in October 2020 (Note 12). The key features of the Contingently Redeemable Ordinary Shares are summarized as follows: Dividends The Investor Shareholder is entitled to receive dividends when and if declared by the Board of Directors, without preference on the ordinary shares or any other classes of shares of the Company. Voting Rights The Investor Shareholder is entitled to the number of votes equal to the number of the ordinary shares. The Investor Shareholder shall vote together with other ordinary shareholders, with respect to any matter upon which ordinary shareholders have the right to vote. Liquidation Preference In the event of liquidation, dissolution or winding up of the Company, either voluntary or involuntary, the Investor Shareholder shall be entitled to receive an amount equal to the sum of the issuance price of the Contingently Redeemable Ordinary Shares for each outstanding Contingently Redeemable Ordinary Share, plus all declared but unpaid dividends, before distributions are made to the ordinary shareholders. Redemption The Contingently Redeemable Ordinary Shares are subject to redemption by the Company at the option of the holder upon the Company’s failure to complete the Qualified IPO before December 6, 2024 and the occurrence of certain events as specified in the shareholder agreement. The redemption price shall be equal to original issuance price and a return at the simple non-compounded rate of 10% per annum calculated from the date of the actual issuance of such Contingently Redeemable Ordinary Shares to the date on which such Contingently Redeemable Ordinary Shares are redeemed, plus all declared but unpaid dividends. The liquidation preference and redemption right as well as other rights including preemptive rights, right of first refusal and etc. will be automatically terminated upon the completion of the Qualified IPO. The Company considered such termination a conversion feature in substance. Accounting for Contingently Redeemable Ordinary Shares The Contingently Redeemable Ordinary Shares are classified as mezzanine equity as they may be redeemed at the option of the holder on or after an agreed upon date outside the sole control of the Company. The Company uses the whole instrument approach to determine whether the nature of the host contract in a hybrid instrument is more akin to debt or to equity. The Company evaluated the embedded conversion features to determine if there were any embedded derivatives required bifurcation and to determine if there were any beneficial conversion features (“BCF”). On the commitment date, there is no BCF to be recognized because the most favorable conversion price used to measure the BCF of the Contingently Redeemable Ordinary Shares was higher than the fair value per ordinary share. The Company determined the fair value of ordinary shares with the assistance of an independent valuation firm. There are no embedded derivatives that are required to be bifurcated because the underlying ordinary shares are not publicly traded nor readily convertible into cash. The Company concluded that Contingently Redeemable Ordinary Shares are not redeemable currently, but it is probable to become redeemable. The Company chose to recognize changes in the redemption value immediately as they occur and adjusted the carrying amount of the Contingently Redeemable Ordinary Shares to equal the redemption value at the end of each reporting period. An accretion charge of RMB821 and RMB10,792 (US$1,654) was recorded as an increase to the net loss attributable to ordinary shareholders for the years ended December 31, 2019 and 2020. The movement in the carrying value of the Contingently Redeemable Ordinary Shares is as follows: RMB Balance as of January 1, 2019 — Proceeds from the Investor Shareholder, net of issuance cost of nil 120,000 Accretion to redemption value 821 Balance as of December 31, 2019 120,821 Net proceeds from the Investor Shareholder 39,967 Accretion to redemption value 10,792 Conversion into Class A ordinary shares upon IPO (171,580) Balance as of December 31, 2020 — Balance as of December 31, 2020 (US$) —

ORDINARY SHARES

ORDINARY SHARES	12 Months Ended
	Dec. 31, 2020
ORDINARY SHARES
ORDINARY SHARES	12. ORDINARY SHARES Upon completion of the IPO, the Company issued 7,000,000 ADSs, representing 35,000,000 Class A ordinary shares, and 1,050,000 ADSs, representing 5,250,000 Class A ordinary shares, pursuant to the underwriters’ full exercise of their option to purchase additional ADSs. Proceeds from the issuance of IPO shares, net of issuance cost, was 589,587 (US$90,358). Immediately prior to the completion of the IPO, all the ordinary shares held by the controlling shareholder were converted into an equal number of the Class B ordinary shares, all the ordinary shares held by other shareholders were converted into an equal number of the Class A ordinary shares, all of outstanding Contingently Redeemable Ordinary Shares were automatically converted on a one-for-one basis into 11,318,619 Class A ordinary shares, and the related aggregate carrying value of RMB171,580 (US$26,296) was reclassified from mezzanine equity to shareholders’ equity. As of December 31, 2020, the authorized share capital consisted of 1,000,000,000 shares, of which 700,000,000 shares were designated as Class A ordinary shares, 200,000,000 as Class B ordinary shares, and 100,000,000 shares of such class (or classes) as the board of directors may determine. The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting and conversion rights. Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to ten votes per share. Each Class B ordinary share can be converted into one Class A ordinary share at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares. As of December 31, 2019, the Company had 215,053,763 ordinary shares issued and outstanding. As of December 31, 2020, there were 122,622,382 and 144,000,000 Class A and Class B ordinary shares issued and outstanding, respectively. No Class B ordinary shares were converted into Class A ordinary shares as of December 31, 2020.

SHARE BASED PAYMENTS

SHARE BASED PAYMENTS	12 Months Ended
	Dec. 31, 2020
SHARE BASED PAYMENTS
SHARE BASED PAYMENTS	13. SHARE‑BASED PAYMENTS Share incentive plan In January 2019, the Group adopted a share incentive plan for the purpose of providing incentives and rewards to the Group’s directors, employees and consultants. As part of the Restructuring, the outstanding options were carried over on a one-for-one basis for the options under the Company’s share incentive plan (the “Share Incentive Plan”) with identical terms and conditions. Under the Share Incentive Plan, a total of 19,684,555 ordinary shares of the Company were reserved. The options granted under the Share Incentive Plan have a contractual term of 10 years. The options granted are accounted for as equity awards and contain both service and performance vesting conditions. The options generally vest in several installments over certain service periods, subject to certain specified performance targets. In addition, majority of the options granted will not be vested and exercisable until the closing of an IPO and the completion of the requisite service periods after such IPO. Certain options granted would be fully vested and exercisable upon the closing of an IPO. The Company records shared-based compensation expense for options with performance conditions using an accelerated method over the requisite service period only if performance conditions are considered probable to be satisfied. Through the date of IPO, the Company has not recognized shared-based compensation expense for the options because the IPO is a performance condition that is not considered probable until it occurs. Upon the Company’s IPO, the performance condition was met and RMB73,378 of share-based compensation expenses was recognized accumulatively related to these awards. A summary of the option activities under the Share Incentive Plan is stated below: Weighted‑ Weighted‑ Weighted‑ average average average remaining Aggregate Number of Exercise grant‑date contractual intrinsic options price fair value term value US$ US$ Years US$ Outstanding, January 1, 2020 4,882,343 0.5 0.65 9.15 6,990 Granted 9,763,248 1.09 1.58 9.33 Forfeited (480,623) 1.37 1.04 Exercised — — — — — Outstanding, December 31, 2020 14,164,968 0.88 1.28 8.93 38,899 Vested and expected to vest at December 31, 2020 14,164,968 0.88 1.28 8.93 38,899 Exercisable at December 31, 2020 3,200,000 11,437 The aggregate intrinsic value in the table above represents the difference between the Company’s closing stock price on the last trading day in 2020 and the options’ respective exercise price. The total intrinsic value of options exercised was RMB nil as no exercise of options during the years ended December 31, 2019 and 2020. The total fair value of share options vested during the years ended December 31, 2018, 2019 and 2020 was nil, nil and RMB49,835 (US$7,290), respectively. As of December 31, 2020, total unrecognized share-based compensation expenses related to unvested share-based awards were RMB44,915 (US$6,884), which were expected to be recognized over a weighted-average vesting period of 2.56 years. Fair value of options The fair value of options was determined using the binomial option pricing model, with the assistance from an independent valuer. The binomial option pricing model requires the input of highly subjective assumptions, including the expected share price volatility and the exercise multiple. For expected volatilities, the Group has made reference to historical volatilities of several comparable companies. The suboptimal exercise factor was estimated based on the Group’s expectation of exercise behavior of the grantees. The risk-free rate for periods within the contractual life of the options is based on the market yield of U.S. Treasury Bonds in effect at the time of grant. Prior to the IPO, the estimated fair value of the ordinary shares, at the option grant dates, was determined with the assistance from an independent valuation firm using the discounted cash flow method. Subsequent to the IPO, the fair value of the ordinary shares is one-fifth of the price of the Company’s publicly traded ADSs. The assumptions used to estimate the fair value of the options granted are as follows: For the year ended December 31, 2019 For the year ended December 31, 2020 Fair value per ordinary share as at valuation date US$0.73 ‑ US$1.93 US$1.30 ‑ US$5.55 Risk‑free rate 1.92% ‑ 2.69% 0.69% ‑ 0.84% Expected volatility range 48.0% ‑ 48.1% 50.87% ‑ 51.22% Exercise multiple 2.2 2.2 - 2.8 Other share‑based compensation In January 2019, the Group awarded certain employees and consultant, for their past services performed, 55,053,763 ordinary shares which were immediately vested on the grant date and issued upon the contribution of RMB3,441 received from them. The fair value of the awards was based on the grant date fair value of Tianjin Hongen’s ordinary shares, which is RMB4.98 per share, determined with the assistance of an independent valuation firm. For the year ended December 31, 2019, total share-based compensation expenses recognized for such awards were RMB270,541. The following table sets forth the amount of share-based compensation expense included in each of the relevant financial statement line items: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Cost of revenue — — 1,897 291 Research and development expenses — 76,301 19,499 2,988 Sales and marketing expenses — 25,892 2,858 438 General and administrative expenses — 168,348 55,637 8,527 — 270,541 79,891 12,244

LOSS PER SHARE

LOSS PER SHARE	12 Months Ended
	Dec. 31, 2020
LOSS PER SHARE
LOSS PER SHARE	14. LOSS PER SHARE Basic and diluted loss per share for each of the years presented are calculated as follows: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Numerator: Net loss (17,604) (275,597) (37,476) (5,742) Accretion to redemption value of contingently redeemable ordinary shares (Note 11) — (821) (10,792) (1,654) Net loss attributable to ordinary shareholders-basic and diluted (17,604) (276,418) (48,268) (7,396) Denominator: Weighted average number of shares outstanding-basic and diluted 160,000,000 181,427,603 226,339,320 226,339,320 Basic and diluted loss per share (0.11) (1.52) (0.21) (0.03) Basic and diluted loss per share are computed using the weighted average number of ordinary shares outstanding during the period. For the year ended December 31, 2019, the computation of basic loss per share using the two-class method is not applicable as the Group is in a net loss position and the participating securities, the contingently redeemable ordinary shares, do not have contractual rights and obligations to share the losses of the Group. For the year ended December 31, 2020, the two-class method is applicable because the Company has two classes of ordinary shares, Class A and Class B. However, basic and diluted loss per share are not reported separately for Class A ordinary shares or Class B ordinary shares as each class of shares has the same rights to undistributed and distributed earnings. The effects of all outstanding contingently redeemable ordinary shares and share options were excluded from the computation of diluted loss per share for the years ended December 31, 2018, 2019 and 2020 as their effects would be anti-dilutive.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	15. RELATED PARTY TRANSACTIONS a) Related parties Shareholders of the Group · Mr. Michael Yufeng Chi · Mr. Tian Liang Entities controlled by controlling shareholder · Hongen Education · Shihezi Happy Forever Equity Investment Co., Ltd. (“Shihezi Happy Forever”) · Subsidiaries and affiliates of Perfect World Holding Group Co., Ltd. (“Perfect World Group”) · Entities involved in the operation of kindergarten business of Hongen Education (“Hongen Kindergartens”) b) The Group had the following related party transactions: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Learning material and devices sales to Hongen Kindergartens 726 1,624 1,326 203 Rental, administrative and other services from Perfect World Group 1,273 2,299 1,543 237 Research and development outsourcing services from Hongen Kindergartens — — 381 58 Assets transferred to Perfect World Group (1) — — 8,405 1,288 Proceeds of loans from shareholders (2) 10,000 2,000 — — Proceeds of loans from Shihezi Happy Forever (3) 24,700 — — — Repayments of loans from shareholders (2) — 12,000 — — Repayments of loans from Shihezi Happy Forever (3) 13,500 51,819 — — The Group had the following related party balances at the end of the year: As of December 31, 2019 2020 2020 RMB RMB US$ Amounts due from related parties: Hongen Education 867 322 49 Amounts due to related parties: Hongen Education (4) 66,183 127 19 Perfect World Group entities 3,248 358 55 69,431 485 74 (1) In October 2020, the Group transferred certain intangible assets to Perfect World Group at the transaction price of RMB8,405 (US$1,288). As the transaction was under common control, the difference between the transaction price and the carrying amount of the intangible assets was included in additional paid-in capital. No gain or loss was recognized. Perfect World Group has fully paid the consideration in 2020. (2) In January 2018, Mr. Michael Yufeng Chi and Mr. Tian Liang entered into a two-year loan facility agreement with the Group, respectively. The loan is unsecured and non-interest bearing. The Group withdrew RMB10,000 and RMB2,000 during the year ended December 31, 2018 and 2019, respectively. The Group fully repaid the loans from the two shareholders in 2019. (3) In May 2016 and January 2017, Shihezi Happy Forever provided the Group with an on-demand, unsecured and non-interest-bearing loan. The Group withdrew RMB24,700 during the year ended December 31, 2018, resulting in an accumulative balance of RMB51,819 as of December 31, 2018. The Group fully repaid the loans in 2019. (4) Amounts due to Hongen Education primarily consist of the cash consideration of RMB66,000 for the acquisition of the Product Business from Hongen Education, which was fully paid in 2020.

RESTRICTED NET ASSETS

RESTRICTED NET ASSETS	12 Months Ended
	Dec. 31, 2020
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS	16. RESTRICTED NET ASSETS The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group's PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiaries. In accordance with the Regulations on Enterprises with Foreign Investment of China and their Articles of Association, the Company's wholly foreign-owned enterprises, being foreign invested enterprise established in the PRC, are required to allocate at least 10% of their after-tax profit determined based on the PRC accounting standards and regulations to the general reserve until the reserve has reached 50% of the relevant subsidiary's registered capital. Appropriations to the staff welfare and bonus fund are at the discretion of the Company's wholly foreign-owned enterprises. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends. In accordance with the PRC Company Laws, the VIE and its subsidiaries must make appropriations from their annual after-tax profits as reported in their PRC statutory accounts to non-distributable reserve funds, namely statutory reserve and discretionary surplus reserve. The VIE and its subsidiaries are required to allocate at least 10% of their after-tax profits to the statutory reserve until such fund has reached 50% of their respective registered capital. Appropriation to discretionary surplus reserve is at the discretion of the VIE and its subsidiaries. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends.As of December 31,2019 and 2020, the Group's PRC subsidiaries, VIE and subsidiaries of the VIE had appropriated RMB nil and RMB517 (US$79) to their reserves. Furthermore, registered share capital and capital reserve accounts of the Company's PRC subsidiary, the VIE and the VIE's subsidiaries are also restricted from distribution. As a result, the restrictions amounted to approximately RMB153,958 (US$23,595), or 23.96% of the Company's total consolidated net assets as of December 31, 2020. Cash transfers from the Company's PRC subsidiary to its subsidiaries outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiary, the VIE and the VIE's subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	17. COMMITMENTS AND CONTINGENCIES (1) Commitments for purchase obligations The following table sets forth our purchase obligations as of December 31, 2020: Less than 1 Over 5 Total Year 1-3 Years 3-5 Years Years Purchase commitments 16,200 12,200 4,000 — — Total 16,200 12,200 4,000 — — (2) Contingencies The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group’s business, financial position or results of operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	18. SUBSEQUENT EVENTS Subsequent to the balance sheet date, one major operating entity of the Group was granted a revolving line of credit of RMB100 million by a PRC commercial bank with no financial covenants required. As of the date of this report, the Group didn't utilize any of the line of credit.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation	Basis of presentation The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”).
Principles of consolidation	Principles of consolidation The consolidated financial statements of the Group include the financial statements of the Company, its subsidiaries, the VIE and the VIE’s subsidiaries for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation.
Use of estimates	Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but are not limited to, allowance for doubtful accounts, reserve for inventories, fair value of financial instruments, useful lives of long-lived assets, impairment of long-lived assets, realization of deferred tax assets, incremental borrowing rate for leases, expected contract period for indefinite term subscriptions, determination of the stand-alone selling price, return allowances and share-based compensation. Prior to the restructuring, the results of the Product Business are determined by using a combination of specific identification of revenues and certain costs as well as a reasonable allocation of the remaining costs using applicable cost drivers where specific identification is not determinable. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates.
Convenience translation	Convenience translation Amounts in U.S. dollars are presented for the convenience of the reader and are translated at the noon buying rate of RMB6.525 per US$1.00 on December 31, 2020 in the City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. No representation is made that the RMB amounts could have been, or could be, converted into US$ at such rate.
Foreign currency	Foreign currency The Group’s financial information is presented in Renminbi (“RMB”). The functional currency of the Company and its subsidiary in Hong Kong is U.S. dollars (“US$”). The functional currency of WFOE and subsidiaries of the WFOE, the VIE and subsidiaries of the VIE located in the PRC is RMB. Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss. The Group uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in "Accumulated other comprehensive loss", a component of shareholders' equity (deficit). Total foreign currency translation adjustment, were nil, nil and RMB21,861 (US$3,350) as of December 31, 2018, 2019 and 2020.
Cash and cash equivalents	Cash and cash equivalents Cash and cash equivalents consist of cash on hand, time deposits and highly liquid investments placed with banks which are unrestricted as to withdrawal or use and have original maturities of less than three months.
Accounts receivable and allowance for doubtful accounts	Accounts receivable and allowance for doubtful accounts Accounts receivable represents uncollected payments from customers for (i) completed transactions where customer payments settled by mobile app stores and third-party online channels but not yet remitted to the Group, or (ii) completed shipments where the Group charges customers and payment has not been received. Accounts receivable are carried at net realizable value. An allowance for doubtful accounts is recorded when collection of the full amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers specific evidence including the aging of the receivable, the customer’s payment history, its current credit-worthiness and current economic trends. Accounts receivable are written off when deemed uncollectible.
Inventories, net	Inventories, net Inventories primarily consisting of products available for sale are stated at the lower of cost or net realizable value. Cost of inventory is determined using the weighted average cost method. Inventory reserve is recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs are recorded in cost of revenues in the consolidated statements of comprehensive loss. As of December 31, 2019 and 2020, the Group had inventories cost of RMB21,742 and RMB19,539 (US$2,994), and the related inventory reserve was RMB1,077 and RMB2,666 (US$408), respectively .
Property and equipment, net	Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated Useful Life Electronic equipment 4 years Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss.
Intangible assets, net	Intangible assets, net Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with finite useful lives are amortized using a straight‑line method of amortization that reflects the estimated pattern in which the economic benefits of the intangible asset are to be consumed. The estimated useful life for the intangible assets is as follows: Category Estimated Useful Life Copyrights 3-10 years Purchased software 1-5 years
Impairment of long-lived assets	Impairment of long-lived assets The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Group recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. For all periods presented, there was no impairment of any of the Group’s long-lived assets.
Segment reporting	Segment reporting In accordance with ASC 280-10, Segment Reporting: Overall (“ASC 280”), operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. After the acquisition of the Product Business under common control, the Group began to integrate the online learning service with the Product Business which creates significant synergies across various aspects of the Group’ business operations. The Group’s CODM has been identified as the Chief Executive Officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group as a whole and hence, the Group has only one operating segment. The Group does not distinguish between markets or segments for purposes of internal reporting. The majority of the Group’s revenues for the years ended December 31, 2018, 2019 and 2020 were generated from the PRC. As of December 31, 2019 and 2020, all of the long-lived assets of the Group are located in the PRC, and therefore, no geographical segments are presented.
Revenue recognition	Revenue recognition Effective January 1, 2018, the Group elected to early adopt the requirements of ASC 606, Revenue from Contracts with Customers (“ASC 606”) using the full retrospective method. The Group applies the five-step model outlined in ASC 606. The Group accounts for a contract when it has approval and commitment from the customer, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The adoption of ASC 606 did not have a material impact on the Group’s accumulated deficit balance as of January 1, 2018. The Group has elected to exclude from revenue sales taxes and other similar taxes that are both imposed on and are concurrent with revenue producing transactions. Therefore, revenues are recognized net of value added taxes (“VAT”). Learning services The majority of the Group’s learning service revenue is generated from non-cancellable subscriptions on its various online learning applications. The non-cancellable subscription contracts provide customers the access to hosted software over a contract term without the customer taking possession of the content software. Subscription revenue is recognized ratably over the contract period as the performance obligation is satisfied. The learning subscription services are sold in short term periods, typically no more than 12 months. Certain learning subscription have contracts with no fixed duration and are marketed as indefinite term subscriptions. For these indefinite term subscriptions, the Group estimates the expected contract period based on historical usage patterns and recognizes related revenue over the expected contract period. The Group also offers its customers to purchase specified completed digital contents on certain learning applications. The completed digital contents can be downloaded and used offline indefinitely. Therefore, customers take possession of these contents, and revenues from sales of completed digital content is recognized at a point in time when the content is made available for the customer’s use. Learning materials and devices The Group sells learning materials and devices to individual users, education organizations and distributors. Revenue from learning materials and devices is recognized when control of the promised goods is transferred to the customer, at an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods. The Group offers certain customers with rights of return. These rights are accounted for as variable consideration when estimating the amount of revenue to be recognized by utilizing expected value method. As of December 31, 2019 and 2020, the liabilities for return allowances and rights to recover products from customers associated with the Group’s liabilities for return allowances were not material. Some contracts with customers include promise to transfer both learning service and learning materials and devices. The Group has determined that the learning material and devices are separate performance obligations under ASC 606, as customers can benefit from the learning material and devices on their own and our promise to deliver learning material and devices is separately identifiable from the learning services. Revenue is allocated to each performance obligation based on its relative standalone selling price (“SSP”). In instances where stand-alone selling price is not directly observable, considerations are allocated using estimated selling prices and expected cost plus margin approach. Determining the stand-alone selling price of each separate unit may require significant judgments, and significant assumptions and estimates have been made in estimating the relative selling price of each single-element. Deferred revenue and customer advances Timing of revenue recognition may differ from the timing of invoicing to customers and cash collection. For certain revenue contracts, customers are required to pay before the services and goods are delivered to the customer. The Group recognizes the excess of payments received as compared to the recognized revenue as deferred revenue or customer advances, which primarily consist of unearned revenue related to subscription services which is recognized ratably over the subscription period, and advanced payments received from customers for goods to be delivered and services to be provided. Payment terms and conditions vary by contract type and customer. For the learning services and sales of learning materials and devices to individual users, immediate payment upon purchase is required. Payments made through certain third-party payment service providers are collected on a real time basis, and payments made through mobile app stores and other third party online channels are generally collected within 60 days. For sales of learning materials and devices to education organizations and distributors, payment terms generally require advanced payments or payment within 60 days. In instances where the timing of revenue recognition differs from the timing of payment, the Group has determined that its contracts do not include a significant financing component. Practical expedients The Group has utilized the practical expedient available under ASC 606-10-50-14 to not to disclose information about its remaining performance obligations because the Group’s contracts with customers generally have an expected duration of no more than one year. Assets recognized from costs to obtain a contract with a customer: The Group has determined that certain costs, primarily channel costs associated with sales made in mobile app stores, meet the requirements to be capitalized as costs of obtaining contracts. The Group recognizes an asset for these costs incurred for non-cancellable subscription contracts in “Prepayments and other current assets” in the consolidated balance sheets. The amortization of these costs over the applicable subscription term are included in cost of revenues.
Cost of revenues	Cost of revenues Cost of revenues primarily includes costs incurred to support and maintain online learning apps including channel costs, product costs, freight, rental costs, salaries and benefits for employees directly involved in revenue generation activities.
Research and development expenses	Research and development expenses Research and development expenses primarily consist of salaries, benefits and share-based compensation for research and development personnel, and third-party outsourcing service provider costs. The Group expenses research and development costs as they are incurred.
Advertising expenditures	Advertising expenditures Advertising costs are expensed when incurred and are included in sales and marketing expenses in the consolidated statements of comprehensive loss. The advertising expenses were RMB3,015, RMB4,593 and RMB63,195 (US$9,685) for the years ended December 31, 2018, 2019 and 2020, respectively.
Employee benefit expenses	Employee benefit expenses All eligible employees of the Group in the PRC are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to accrue for these benefits based on certain percentages of the qualified employees’ salaries and to make contributions to the plans out of the amounts accrued. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed. The Group recorded employee benefit expenses of RMB14,503, RMB22,107 and RMB24,073 (US$3,689) for the years ended December 31, 2018, 2019 and 2020, respectively. The Group has no further payment obligations once the contributions have been paid.
Share-based compensation	Share-based compensation The Groups applies ASC 718, Compensation—Stock Compensation (“ASC 718”), to account for its employee share-based payments. In accordance with ASC 718, the Group determines whether an award should be accounted for as a liability award or equity award. All the Group’s share-based awards to employees were classified as equity awards and are recognized in the consolidated financial statements based on their grant date fair values. The Group early adopted ASU No. 2018-7, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting (“ASU 2018-7”) on January 1, 2018 and applies ASC 718 to account for share-based payments for acquiring goods and services from non-employees at grant date fair value. The Group has elected to recognize share-based compensation using the accelerated method, for all share-based awards granted with graded vesting or cliff vesting based on service conditions and performance conditions and only if performance-based conditions are considered probable to be satisfied. The Group has adopted ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting on January 1, 2018 and elected to account for forfeitures as they occur. The Group, with the assistance of an independent valuation firm, determined the fair value of the share options.
Leases	Leases The Group adopted ASU No. 2016‑02, Leases (Topic 842) and all subsequent ASU’s relating to this Topic (collectively, “ASC 842”) on January 1, 2020 using the modified retrospective method and did not restate comparable periods. The Group elected the package of practical expedients permitted under the transition guidance, which allowed the Group to carry forward the historical lease classification for any expired or existing contract and the accounting for the initial direct costs on those leases on the adoption date. The Group also elected the practical expedient of the short‑term lease exemption for contracts with lease terms of 12 months or less. Upon adoption, the Group recognized right‑of‑use (“ROU”) assets of RMB22,852 and total lease liabilities (including current and non‑current) of RMB22,492 for operating leases as of January 1, 2020. The impact of adopting ASC 842 on the Group’s opening accumulated deficit and current year net loss is not material. The Group leases real estate property under operating leases. ROU assets are recognized at the amount of the lease liabilities, adjusted for cumulative prepayments and lease incentives, if any. Lease liabilities are recognized at the present value of the lease payments over the lease term at the commencement date. As the rate implicit in the Group’s leases are not readily available, the Group uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate reflects the fixed rate at which the Group could borrow on a collateralized basis, the amount of the lease payments in the same currency, for a similar term and in a similar economic environment. The Group recognizes operating lease expense on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise. The Group accounts termination of a lease before the expiration of the lease term by removing the right-of-use asset and the lease liability, with profit or loss recognized for the difference if any. As of December 31, 2020, the Group recognized net operating lease ROU assets of RMB6,521 (US$999) and total lease liabilities of RMB6,614 (US$1,014), comprised of current portion of RMB1,544 (US$237) reported in current operating lease liabilities and non-current portion of RMB5,070 (US$777) reported in non-current operating lease liabilities. The total lease cost for the year ended December 31, 2020 was RMB11,432 (US$1,752), comprised of operating lease cost and short-term lease cost of RMB11,297 (US$1,731) and RMB135 (US$21), respectively. The weighted-average remaining lease term and weighted average incremental borrowing rate as of December 31, 2020 was 5.07 years and 8.01%, respectively. The undiscounted future minimum payments under the Group's operating lease liabilities and reconciliation to the operating lease liabilities recognized on the consolidated balance sheets was as below: As of December 31, 2020 RMB US$ 2021 1,601 245 2022 1,451 222 2023 1,563 240 2024 1,563 240 2025 1,327 203 Thereafter 508 78 Total lease payments 8,013 1,228 Less: Imputed interest 1,399 214 Present value of lease liabilities 6,614 1,014
Income taxes	Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"). Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. In accordance with the provisions of ASC 740, the Group recognizes in its consolidated financial statements the impact of a tax position if a tax return position or future 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. The Group's estimated liability for unrecognized tax benefits, if any, will be recorded in the "other non-current liabilities" in the accompanying consolidated financial statements is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group's estimates. As each audit is concluded, adjustments, if any, are recorded in the Group's consolidated financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur.
Loss per share	Loss per share In accordance with ASC 260, Earnings Per Share , basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net loss is allocated between ordinary shares and other participating securities based on their participating rights. The Company’s contingently redeemable ordinary shares are participating securities. For the year ended December 31, 2019, the computation of basic loss per share using the two-class method is not applicable as the Company is in a net loss position and the participating securities do not have contractual rights and obligations to share in the losses of the Company. For the year ended December 31, 2020, the two-class method is applicable because the Company has two classes of ordinary shares outstanding, Class A and Class B ordinary shares, respectively. Diluted loss per share is calculated by dividing net loss 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 the contingently redeemable ordinary shares using the if‑converted method; and ordinary shares issuable upon the exercise of share options, using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted per share if their effects would be anti‑dilutive. Share options with performance conditions are considered contingently issuable shares and are included in the computation of diluted loss per share to the extent that the performance conditions are met such that the ordinary shares will be issued at the end of the reporting period, assuming it was the end of the contingency period.
Fair value measurements	Fair value measurements Financial instruments of the Group primarily include cash and cash equivalents, accounts receivable, amounts due from and due to related parties, accounts payable, certain other current and non‑current assets and liabilities, and contingently redeemable ordinary shares. The Group applies ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. The contingently redeemable ordinary shares were initially recorded at issue price net of issuance costs. As it relates to the contingently redeemable ordinary shares, the Group recognizes changes in the redemption value immediately as they occur and adjusts the carrying value of the contingently redeemable ordinary shares to equal the redemption value at the end of each reporting period. The carrying values of the remaining financial instruments approximate their fair values due to their short‑term maturities. ASC 820 establishes a three‑tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: 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. ASC 820 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. There were no assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2020.
Comprehensive loss	Comprehensive loss Comprehensive loss is defined to include all changes in equity deficit of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss includes net loss and foreign currency translation adjustment of the Group.
Recent accounting pronouncements	Recent accounting pronouncements The Group is an emerging growth company (“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an EGC can take advantage of extended transition periods for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. The Group elected to take advantage of the extended transition periods. However, this election will not apply should the Group cease to be classified as an EGC. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. The standard will replace the “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. For U.S. SEC filers that are not smaller reporting companies, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, ASU 2016 -13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Group is currently evaluating the impact on the consolidated financial statements of adopting this guidance. In December 2019 the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . This update eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This guidance is effective for public business entities (PBEs) for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, it is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Group is currently evaluating the impact on its consolidated financial statements of adopting this guidance.

ORGANIZATION, CONSOLIDATION A_2

ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES (Tables)	12 Months Ended
	Dec. 31, 2020
ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES
Schedule of subsidiaries and variable interest entities	Percentage of equity interest Date of Place of attributable to Name establishment establishment the Company Principal activities Subsidiaries iHuman Online October 2, 2019 HK 100% Investment holding Hongen Investment November 11, 2019 PRC 100% Management and technical consulting Variable interest entity: Tianjin Hongen March 30, 2016 PRC Nil Education services Subsidiaries of the VIE: Beijing Hongen Perfect Future Education Technology Co., Ltd. July 1, 2016 PRC Nil Education services Tianjin Hongen Perfect Technology Development Co., Ltd. August 26, 2019 PRC Nil Education services Beijing Jinhongen September 4, 2019 PRC Nil Education services and sales of learning materials and devices
Schedule of VIE and its subsidiaries' financial statements	The table set forth the assets and liabilities of the VIE and VIE’s subsidiaries included in the Group’s consolidated balance sheets: As of December 31, 2019 2020 2020 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 104,883 247,253 37,893 Accounts receivable, net of allowance of RMB316 and RMB156 (US$24) as of December 31, 2019 and 2020, respectively 20,118 77,965 11,949 Amounts due from related parties 953 5,463 837 Inventories, net 20,665 16,873 2,586 Prepayments and other current assets 16,529 64,587 9,898 Total current assets 163,148 412,141 63,163 Non‑current assets Property and equipment, net 2,487 6,390 979 Intangible assets, net 103 10,582 1,622 Operating lease right‑of‑use assets — 6,521 999 Other non‑current assets 2,663 784 121 Total non‑current assets 5,253 24,277 3,721 Total assets 168,401 436,418 66,884 LIABILITIES Current liabilities Accounts payable 10,302 19,980 3,062 Amounts due to related parties 69,431 485 74 Deferred revenue and customer advances 71,831 268,613 41,167 Accrued expenses and other current liabilities 31,200 95,200 14,590 Current operating lease liabilities — 1,544 237 Total current liabilities 182,764 385,822 59,130 Non‑current liabilities Non‑current operating lease liabilities — 5,070 777 Total non‑current liabilities — 5,070 777 Total liabilities 182,764 390,892 59,907 Commitments and contingencies The table sets forth the results of operations of the VIE and VIE’s subsidiaries included in the Group’s consolidated statements of comprehensive loss for years ended December 31, 2018, 2019 and 2020, respectively: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Revenue 131,867 218,656 531,915 81,520 Net loss (17,604) (275,511) (23,486) (3,599) The table sets forth the cash flows of the VIE and VIE’s subsidiaries included in the Group’s consolidated statements of cash flows for the years ended December 31, 2018, 2019 and 2020, respectively: For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Net cash (used in) provided by operating activities (4,504) 42,627 218,765 33,527 Net cash used in investing activities (529) (2,391) (15,622) (2,394) Net cash provided by (used in) financing activities 10,314 58,523 (60,773) (9,314) Net increase in cash and cash equivalents 5,281 98,759 142,370 21,819

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of estimated useful lives of property and equipment	Category Estimated Useful Life Electronic equipment 4 years
Schedule of estimated useful life for the intangible assets	Category Estimated Useful Life Copyrights 3-10 years Purchased software 1-5 years
Schedule of the undiscounted future minimum payments under the Group's operating lease liabilities and reconciliation to the operating lease liabilities recognized on the condensed consolidated balance sheet	As of December 31, 2020 RMB US$ 2021 1,601 245 2022 1,451 222 2023 1,563 240 2024 1,563 240 2025 1,327 203 Thereafter 508 78 Total lease payments 8,013 1,228 Less: Imputed interest 1,399 214 Present value of lease liabilities 6,614 1,014

REVENUE AND DEFERRED REVENUE (T

REVENUE AND DEFERRED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2020
REVENUE AND DEFERRED REVENUE
Schedule of the Group's revenues from contracts with customers disaggregated by learning services, learning materials and devices revenue category	For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Learning services: Recognized over time 20,805 106,163 429,633 65,844 Recognized at a point in time 1,205 1,246 833 128 22,010 107,409 430,466 65,972 Learning materials and devices recognized at a point in time 109,857 111,247 101,449 15,548 Total revenues 131,867 218,656 531,915 81,520

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2020
ACCOUNTS RECEIVABLE
Schedule of components of accounts receivable	As of December 31, 2019 2020 2020 RMB RMB US$ Accounts receivable 20,434 78,121 11,973 Allowance for doubtful accounts (316) (156) (24) Accounts receivable, net 20,118 77,965 11,949
Schedule of movements in the allowance for doubtful accounts	For the year ended December 31, 2019 2020 2020 RMB RMB US$ Balance at beginning of the year 180 316 48 Provisions/(reversals) 136 (160) (24) Balance at end of the year 316 156 24

PREPAYMENTS AND OTHER CURRENT_2

PREPAYMENTS AND OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
PREPAYMENTS AND OTHER CURRENT ASSETS
Schedule of prepaid expense and other assets	As of December 31, 2019 2020 2020 RMB RMB US$ Deferred channel costs 12,890 56,335 8,634 Prepaid taxes 2,069 3,433 526 Advances to suppliers 627 136 21 Prepaid expenses 369 28 4 Rental deposits 12 2,636 404 Others 562 2,051 314 16,529 64,619 9,903

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2020
PROPERTY AND EQUIPMENT
Schedule of property and equipment	As of December 31, 2019 2020 2020 RMB RMB US$ Electronic equipment 3,530 8,793 1,348 Less: accumulated depreciation (1,043) (2,403) (369) Property and equipment, net 2,487 6,390 979

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
INTANGIBLE ASSETS
Schedule of intangible assets	As of December 31, 2019 2020 2020 RMB RMB US$ Copyrights 167 7,375 1,130 Purchased software — 5,570 854 Less: accumulated amortization (64) (1,156) (177) Intangible assets, net 103 11,789 1,807

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2020
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Schedule of accrued expenses and other current liabilities	As of December 31, 2019 2020 2020 RMB RMB US$ Payroll payable 23,087 55,176 8,456 Accrued expenses 3,336 29,063 4,454 Tax payable 3,197 17,391 2,665 Deposits 700 2,061 316 Others 880 3,338 512 31,200 107,029 16,403

TAXATION (Tables)

TAXATION (Tables)	12 Months Ended
	Dec. 31, 2020
TAXATION
Schedule of current and deferred portion of income tax expense	For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Current income tax expenses 1,610 1,364 466 71 Deferred income tax expenses — — — — Total income tax expenses 1,610 1,364 466 71
Schedule of the differences between the statutory tax rate and the effective tax rate for enterprise income tax	For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Loss before income tax (15,994) (274,233) (37,010) (5,671) Income tax computed at the PRC statutory tax rate of 25% (3,999) (68,558) (9,253) (1,418) Effect of differing tax rates in different jurisdictions — — 1,596 245 Effect of tax rate changes on deferred taxes — — 50,950 7,808 Research and development super‑deduction (9,596) (8,774) (12,707) (1,947) Shared‑based compensation expenses — 67,635 19,913 3,051 Non‑deductible expenses 56 554 3,678 564 Effect of PRC preferential tax rates — — (22,458) (3,442) Change in valuation allowance 15,148 10,342 (31,269) (4,792) Others 1 165 16 2 Income tax expenses 1,610 1,364 466 71
Schedule of components of the Group's deferred tax assets	As of December 31, 2019 2020 2020 RMB RMB US$ Deferred tax assets Tax loss carry forward 25,830 6,520 999 Deferred revenue and customer advances 13,001 721 110 Lease liabilities recognized under ASC842 — 1,630 250 Others 62 383 59 Less: valuation allowance (38,893) (7,624) (1,168) — 1,630 250 Deferred tax liabilities ROU recognized under ASC842 — (1,630) (250) — (1,630) (250) Presentation in the consolidated balance sheets Deferred tax assets, net — — — Deferred tax liabilities, net — — — Net deferred tax assets, net — — —

CONTINGENTLY REDEEMABLE ORDIN_2

CONTINGENTLY REDEEMABLE ORDINARY SHARES (Tables)	12 Months Ended
	Dec. 31, 2020
CONTINGENTLY REDEEMABLE ORDINARY SHARES
Schedule of movement in the carrying value of the Contingently Redeemable Ordinary Shares	RMB Balance as of January 1, 2019 — Proceeds from the Investor Shareholder, net of issuance cost of nil 120,000 Accretion to redemption value 821 Balance as of December 31, 2019 120,821 Net proceeds from the Investor Shareholder 39,967 Accretion to redemption value 10,792 Conversion into Class A ordinary shares upon IPO (171,580) Balance as of December 31, 2020 — Balance as of December 31, 2020 (US$) —

SHARE BASED PAYMENTS (Tables)

SHARE BASED PAYMENTS (Tables)	12 Months Ended
	Dec. 31, 2020
SHARE BASED PAYMENTS
Schedule of the option activities under the Share Incentive Plan	Weighted‑ Weighted‑ Weighted‑ average average average remaining Aggregate Number of Exercise grant‑date contractual intrinsic options price fair value term value US$ US$ Years US$ Outstanding, January 1, 2020 4,882,343 0.5 0.65 9.15 6,990 Granted 9,763,248 1.09 1.58 9.33 Forfeited (480,623) 1.37 1.04 Exercised — — — — — Outstanding, December 31, 2020 14,164,968 0.88 1.28 8.93 38,899 Vested and expected to vest at December 31, 2020 14,164,968 0.88 1.28 8.93 38,899 Exercisable at December 31, 2020 3,200,000 11,437
Schedule of the assumptions used to estimate the fair value of the options granted	For the year ended December 31, 2019 For the year ended December 31, 2020 Fair value per ordinary share as at valuation date US$0.73 ‑ US$1.93 US$1.30 ‑ US$5.55 Risk‑free rate 1.92% ‑ 2.69% 0.69% ‑ 0.84% Expected volatility range 48.0% ‑ 48.1% 50.87% ‑ 51.22% Exercise multiple 2.2 2.2 - 2.8
Schedule of the amount of share-based compensation expense included in each of the relevant financial statement line items	For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Cost of revenue — — 1,897 291 Research and development expenses — 76,301 19,499 2,988 Sales and marketing expenses — 25,892 2,858 438 General and administrative expenses — 168,348 55,637 8,527 — 270,541 79,891 12,244

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2020
LOSS PER SHARE
Schedule of basic and diluted loss per share	For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Numerator: Net loss (17,604) (275,597) (37,476) (5,742) Accretion to redemption value of contingently redeemable ordinary shares (Note 11) — (821) (10,792) (1,654) Net loss attributable to ordinary shareholders-basic and diluted (17,604) (276,418) (48,268) (7,396) Denominator: Weighted average number of shares outstanding-basic and diluted 160,000,000 181,427,603 226,339,320 226,339,320 Basic and diluted loss per share (0.11) (1.52) (0.21) (0.03)

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2020
RELATED PARTY TRANSACTIONS
Schedule of related party transactions	For the year ended December 31, 2018 2019 2020 2020 RMB RMB RMB US$ Learning material and devices sales to Hongen Kindergartens 726 1,624 1,326 203 Rental, administrative and other services from Perfect World Group 1,273 2,299 1,543 237 Research and development outsourcing services from Hongen Kindergartens — — 381 58 Assets transferred to Perfect World Group (1) — — 8,405 1,288 Proceeds of loans from shareholders (2) 10,000 2,000 — — Proceeds of loans from Shihezi Happy Forever (3) 24,700 — — — Repayments of loans from shareholders (2) — 12,000 — — Repayments of loans from Shihezi Happy Forever (3) 13,500 51,819 — — As of December 31, 2019 2020 2020 RMB RMB US$ Amounts due from related parties: Hongen Education 867 322 49 Amounts due to related parties: Hongen Education (4) 66,183 127 19 Perfect World Group entities 3,248 358 55 69,431 485 74

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2020
COMMITMENTS AND CONTINGENCIES
Schedule of commitments for purchase obligations	The following table sets forth our purchase obligations as of December 31, 2020: Less than 1 Over 5 Total Year 1-3 Years 3-5 Years Years Purchase commitments 16,200 12,200 4,000 — — Total 16,200 12,200 4,000 — —

ORGANIZATION, CONSOLIDATION A_3

ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES, Restructuring (Details) - CNY (¥) ¥ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020
Shareholders of Tianjin Hongen
Subsidiary And Variable Interest Entity [Line Items]
Number of ordinary shares exchange for equity interests in Tianjin Hongen	215,053,763
Beijing Jinhongen
Subsidiary And Variable Interest Entity [Line Items]
Cash consideration to acquire certain operating assets and liabilities relating to the Product Business		¥ 66,000

ORGANIZATION, CONSOLIDATION A_4

ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES, Principal subsidiaries, VIE and the VIE's subsidiaries (Details)	12 Months Ended
	Dec. 31, 2020
iHuman Online
Subsidiary And Variable Interest Entity [Line Items]
Percentage of equity interest, subsidiaries (as a percent)	100.00%
Hongen Investment
Subsidiary And Variable Interest Entity [Line Items]
Percentage of equity interest, subsidiaries (as a percent)	100.00%
Tianjin Hongen
Subsidiary And Variable Interest Entity [Line Items]
Percentage of equity interest, Variable interest entity or subsidiaries of the VIE (as a percent)	0.00%
Beijing Hongen Perfect Future Education Technology Co., Ltd.
Subsidiary And Variable Interest Entity [Line Items]
Percentage of equity interest, Variable interest entity or subsidiaries of the VIE (as a percent)	0.00%
Tianjin Hongen Perfect Technology Development Co., Ltd.
Subsidiary And Variable Interest Entity [Line Items]
Percentage of equity interest, Variable interest entity or subsidiaries of the VIE (as a percent)	0.00%
Beijing Jinhongen
Subsidiary And Variable Interest Entity [Line Items]
Percentage of equity interest, Variable interest entity or subsidiaries of the VIE (as a percent)	0.00%

ORGANIZATION, CONSOLIDATION A_5

ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES, Balance sheets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019USD ($)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)
Current assets
Cash and cash equivalents	$ 132,059	¥ 861,682		¥ 104,883
Accounts receivable, net of allowance of RMB316 and RMB156 (US$24) as of December 31, 2019 and 2020, respectively	11,949	77,965		20,118
Amounts due from related parties	49	322		867
Inventories, net	2,586	16,873		20,665
Prepayments and other current assets	9,903	64,619		16,529
Total current assets	156,546	1,021,461		163,062
Noncurrent assets
Property and equipment, net	979	6,390		2,487
Intangible assets, net	1,807	11,789		103
Operating lease rightofuse assets	999	6,521
Other noncurrent assets	121	784		2,663
Total noncurrent assets	3,906	25,484		5,253
Total assets	160,452	1,046,945		168,315
Current liabilities (including current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB182,764 and RMB385,822 (US$59,130) as of December 31, 2019 and 2020, respectively)
Accounts payable	3,303	21,551		10,302
Amounts due to related parties	74	485		69,431
Accrued expenses and other current liabilities	16,403	107,029		31,200
Current operating lease liabilities	237	1,544
Total current liabilities	61,184	399,222		182,764
Non-current liabilities
Noncurrent operating lease liabilities	777	5,070
Total noncurrent liabilities	777	5,070
Total liabilities	61,961	404,292		182,764
Commitments and contingencies
Allowance for doubtful accounts	24	156	$ 48	316	¥ 180
VIE
Current assets
Cash and cash equivalents	37,893	247,253		104,883
Accounts receivable, net of allowance of RMB316 and RMB156 (US$24) as of December 31, 2019 and 2020, respectively	11,949	77,965		20,118
Amounts due from related parties	837	5,463		953
Inventories, net	2,586	16,873		20,665
Prepayments and other current assets	9,898	64,587		16,529
Total current assets	63,163	412,141		163,148
Noncurrent assets
Property and equipment, net	979	6,390		2,487
Intangible assets, net	1,622	10,582		103
Operating lease rightofuse assets	999	6,521
Other noncurrent assets	121	784		2,663
Total noncurrent assets	3,721	24,277		5,253
Total assets	66,884	436,418		168,401
Current liabilities (including current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB182,764 and RMB385,822 (US$59,130) as of December 31, 2019 and 2020, respectively)
Accounts payable	3,062	19,980		10,302
Amounts due to related parties	74	485		69,431
Deferred revenue and customer advances	41,167	268,613		71,831
Accrued expenses and other current liabilities	14,590	95,200		31,200
Current operating lease liabilities	237	1,544
Total current liabilities	59,130	385,822		182,764
Non-current liabilities
Noncurrent operating lease liabilities	777	5,070
Total noncurrent liabilities	777	5,070
Total liabilities	59,907	390,892		182,764
Commitments and contingencies
Allowance for doubtful accounts	24	156		316
Net Asset and liability	$ 6,977	45,526		14,363
VIE | Pledge or collateralization
Noncurrent assets
Total assets		¥ 0		¥ 0

ORGANIZATION, CONSOLIDATION A_6

ORGANIZATION, CONSOLIDATION AND PRINCIPAL ACTIVITIES, Results of operations and consolidated statements of cash flows (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)
Subsidiary And Variable Interest Entity [Line Items]
Revenue	$ 81,520	¥ 531,915	¥ 218,656	¥ 131,867
Net loss	(5,742)	(37,476)	(275,597)	(17,604)
Net cash (used in) provided by operating activities	34,176	222,986	42,627	(4,504)
Net cash used in investing activities	(2,439)	(15,906)	(2,391)	(529)
Net cash provided by (used in) financing activities	87,656	571,959	58,523	10,314
Net increase in cash and cash equivalents	115,985	756,799	98,759	5,281
VIE
Subsidiary And Variable Interest Entity [Line Items]
Revenue	81,520	531,915	218,656	131,867
Net loss	(3,599)	(23,486)	(275,511)	(17,604)
Net cash (used in) provided by operating activities	33,527	218,765	42,627	(4,504)
Net cash used in investing activities	(2,394)	(15,622)	(2,391)	(529)
Net cash provided by (used in) financing activities	(9,314)	(60,773)	58,523	10,314
Net increase in cash and cash equivalents	$ 21,819	¥ 142,370	¥ 98,759	¥ 5,281

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Narrative (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)$ / ¥	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)	Dec. 31, 2020CNY (¥)$ / ¥
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Convenience translation rate (USD to RMB) | $ / ¥	6.525				6.525
Translation differences are recorded in "Accumulated other comprehensive income", a component of shareholders' deficit. Total exchange gain / (loss)	$ (3,350)	¥ (21,861)	¥ 0	¥ 0
Inventories cost	2,994		21,742		¥ 19,539
Inventory reserve	$ 408		¥ 1,077		¥ 2,666
Impairment of long-lived assets | ¥		¥ 0
Number of operating segment	1	1
Number of geographical segments	0	0	0
Practical expedient available under ASC 606-10-50-14 to not to disclose information about its remaining performance obligations	false	false
Advertising expenses	$ 9,685	¥ 63,195	¥ 4,593	3,015
Employee benefit expenses	$ 3,689	¥ 24,073	¥ 22,107	¥ 14,503

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Property and equipment, net (Details)	12 Months Ended
	Dec. 31, 2020
Electronic equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life	P4Y

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Intangible assets, net (Details)	12 Months Ended
	Dec. 31, 2020
Copyrights | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	3 years
Copyrights | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	10 years
Purchased software | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	1 year
Purchased software | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	5 years

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Leases (Details) ¥ in Thousands, $ in Thousands	Jan. 01, 2020	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Package of practical expedients	false
Lease, Practical Expedient, Use of Hindsight [true false]	false
Operating Lease, Right-of-Use Asset		$ 999		¥ 6,521
Operating Lease, Liability		1,014		6,614
Operating Lease, Liability, Current		237		1,544
Operating Lease, Liability, Noncurrent		777		¥ 5,070
Lease, Cost		1,752	¥ 11,432
Operating Lease, Cost		1,731	11,297
Short-term Lease, Cost		$ 21	¥ 135
Operating Lease, Weighted Average Remaining Lease Term		5 years 26 days		5 years 26 days
Operating Lease, Weighted Average Discount Rate, Percent		8.01%		8.01%
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset					¥ 22,852
Operating Lease, Liability					¥ 22,492

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Leases - Undiscounted future minimum payments (Details) - Dec. 31, 2020 ¥ in Thousands, $ in Thousands	USD ($)	CNY (¥)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2021	$ 245	¥ 1,601
2022	222	1,451
2023	240	1,563
2024	240	1,563
2025	203	1,327
Thereafter	78	508
Total lease payments	1,228	8,013
Less: Imputed interest	214	1,399
Present value of lease liabilities	$ 1,014	¥ 6,614

CONCENTRATION OF RISKS (Details

CONCENTRATION OF RISKS (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Currency Appreciation (Depreciation), Percentage	6.30%	1.30%	5.50%

REVENUE AND DEFERRED REVENUE (D

REVENUE AND DEFERRED REVENUE (Details) ¥ in Thousands, $ in Thousands	Jan. 01, 2020USD ($)	Jan. 01, 2020CNY (¥)	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)	Dec. 31, 2020CNY (¥)
Disaggregation of Revenue [Line Items]
Total revenues			$ 81,520	¥ 531,915	¥ 218,656	¥ 131,867
Amortization of deferred channel costs			13,708	89,444	22,381	4,991
Impairment recognized to the deferred channel costs				0	0	0
Deferred revenue and customer advances			41,167		71,831		¥ 268,613
Revenue recognized	$ 10,611	¥ 69,234		71,831
Learning services
Disaggregation of Revenue [Line Items]
Total revenues			65,972	430,466	107,409	22,010
Learning services | Recognized over time
Disaggregation of Revenue [Line Items]
Total revenues			65,844	429,633	106,163	20,805
Learning services | Recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenues			128	833	1,246	1,205
Learning materials and devices
Disaggregation of Revenue [Line Items]
Total revenues			15,548	101,449	111,247	109,857
Learning materials and devices | Recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenues			$ 15,548	¥ 101,449	¥ 111,247	¥ 109,857

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019USD ($)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)
ACCOUNTS RECEIVABLE
Accounts receivable	$ 11,973	¥ 78,121		¥ 20,434
Allowance for doubtful accounts	24	156	$ 48	316	¥ 180
Accounts receivable, net	$ 11,949	¥ 77,965		¥ 20,118

ACCOUNTS RECEIVABLE - Movements

ACCOUNTS RECEIVABLE - Movements in the allowance for doubtful accounts (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)
Movements in the allowance for doubtful accounts
Balance at beginning of the year	$ 48	¥ 316	¥ 180
Provisions/(reversals)	(24)	(160)	136	¥ 116
Balance at end of the year	$ 24	¥ 156	¥ 316	¥ 180

PREPAYMENTS AND OTHER CURRENT_3

PREPAYMENTS AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)
PREPAYMENTS AND OTHER CURRENT ASSETS
Deferred channel costs	$ 8,634	¥ 56,335	¥ 12,890
Prepaid taxes	526	3,433	2,069
Advances to suppliers	21	136	627
Prepaid expenses	4	28	369
Rental deposits	404	2,636	12
Others	314	2,051	562
Total prepayments and other current assets	$ 9,903	¥ 64,619	¥ 16,529

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)	Dec. 31, 2020CNY (¥)
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation	$ (369)		¥ (1,043)		¥ (2,403)
Property and equipment, net	979		2,487		6,390
Depreciation expense	208	¥ 1,360	511	¥ 305
Electronic equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,348		¥ 3,530		¥ 8,793

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)
Finite-Lived Intangible Assets [Line Items]
Less: accumulated amortization	$ (177)	¥ (1,156)	¥ (64)
Intangible assets, net	1,807	11,789	103
Copyrights
Finite-Lived Intangible Assets [Line Items]
Intangible asset, gross	1,130	7,375	¥ 167
Purchased software
Finite-Lived Intangible Assets [Line Items]
Intangible asset, gross	$ 854	¥ 5,570

INTANGIBLE ASSETS - Additional

INTANGIBLE ASSETS - Additional Information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)	Dec. 31, 2020CNY (¥)
INTANGIBLE ASSETS
Amortization expense	$ 223	¥ 1,454	¥ 86	¥ 60
Estimated amortization expense, Year 1	356				¥ 2,324
Estimated amortization expense, Year 2	310				2,025
Estimated amortization expense, Year 3	271				1,768
Estimated amortization expense, Year 4	227				1,482
Estimated amortization expense, Year 5	$ 162				¥ 1,054

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Payroll payable	$ 8,456	¥ 55,176	¥ 23,087
Accrued expenses	4,454	29,063	3,336
Tax payable	2,665	17,391	3,197
Deposits	316	2,061	700
Others	512	3,338	880
Total	$ 16,403	¥ 107,029	¥ 31,200

TAXATION - Additional Informati

TAXATION - Additional Information (Details) ¥ in Thousands, $ in Thousands, $ in Thousands	Jan. 01, 2008	Dec. 31, 2020HKD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)
Income Tax and Tax Rate [Line Items]
Income tax expenses			$ 71	¥ 466	¥ 1,364	¥ 1,610
Tianjin Hongen
Income Tax and Tax Rate [Line Items]
Statutory income tax rate		12.50%	12.50%	12.50%
Cayman Islands
Income Tax and Tax Rate [Line Items]
Withholding tax | ¥				¥ 0
Hong Kong
Income Tax and Tax Rate [Line Items]
Statutory income tax rate		16.50%	16.50%	16.50%
Preferential income tax rate		8.25%	8.25%	8.25%
Assessable profits threshold for preferential income tax rate		$ 2,000
Income tax expenses		0
Assessable income		$ 0
PRC
Income Tax and Tax Rate [Line Items]
Statutory income tax rate	25.00%	25.00%	25.00%	25.00%
Preferential income tax rate	15.00%
Withholding tax rate		10.00%	10.00%	10.00%
PRC | Beijing Jinhongen
Income Tax and Tax Rate [Line Items]
Statutory income tax rate		25.00%	25.00%	25.00%
Preferential income tax rate					20.00%
Percentage of reduction for its first RMB1,000 of annual taxable income					75.00%
Percentage of reduction for its annual taxable income between RMB1,000 and RMB3,000					50.00%

TAXATION - Current and deferred

TAXATION - Current and deferred components (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)
TAXATION
Current income tax expenses	$ 71	¥ 466	¥ 1,364	¥ 1,610
Total income tax expenses	$ 71	¥ 466	¥ 1,364	¥ 1,610

TAXATION - Reconciliation of th

TAXATION - Reconciliation of the differences between the statutory tax rate and the effective tax rate (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)
TAXATION
Loss before income tax	$ (5,671)	¥ (37,010)	¥ (274,233)	¥ (15,994)
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income tax computed at the PRC statutory tax rate of 25%	(1,418)	(9,253)	(68,558)	(3,999)
Effect of differing tax rates in different jurisdictions	245	1,596
Effect of tax rate changes on deferred taxes	7,808	50,950
Research and development superdeduction	(1,947)	(12,707)	(8,774)	(9,596)
Sharedbased compensation expenses	3,051	19,913	67,635
Nondeductible expenses	564	3,678	554	56
Effect of PRC preferential tax rates	(3,442)	(22,458)
Change in valuation allowance	(4,792)	(31,269)	10,342	15,148
Others	2	16	165	1
Total income tax expenses	$ 71	¥ 466	1,364	1,610
Valuation allowance, onshore restructuring			¥ (924)	¥ 1,340

TAXATION - Deferred tax assets

TAXATION - Deferred tax assets (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)	Dec. 31, 2020CNY (¥)
Deferred tax assets
Tax loss carry forward	$ 999		¥ 25,830		¥ 6,520
Deferred revenue and customer advances	110		13,001		721
Lease liabilities recognized under ASC842	250				1,630
Others	59		62		383
Less: valuation allowance	(1,168)		(38,893)		(7,624)
Total deferred income tax assets	250				1,630
Deferred tax liabilities
ROU recognized under ASC842	(250)				(1,630)
Total Deferred Tax Liabilities	(250)				¥ (1,630)
Taxable losses	(5,671)	¥ (37,010)	¥ (274,233)	¥ (15,994)
PRC
Deferred tax liabilities
Taxable losses	$ 3,982	¥ 25,983

CONTINGENTLY REDEEMABLE ORDIN_3

CONTINGENTLY REDEEMABLE ORDINARY SHARES (Details) - shares	Oct. 12, 2020	Oct. 08, 2020	May 18, 2020	Dec. 06, 2019	Oct. 31, 2020	Dec. 31, 2020
Class of Stock [Line Items]
Simple non-compounded rate per annum for redemption price (as a percent)				10.00%
Contingently redeemable ordinary shares
Class of Stock [Line Items]
Shares issued (in shares)				11,318,619
Proceeds from issuance of contingently redeemable ordinary shares			40,000	120,000
Class A ordinary shares
Class of Stock [Line Items]
Shares issued (in shares)	5,250,000	35,000,000
Shares converted					11,318,619	11,318,619

CONTINGENTLY REDEEMABLE ORDIN_4

CONTINGENTLY REDEEMABLE ORDINARY SHARES - movement in the carrying value (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance		¥ 120,821
Proceeds from the Investor Shareholder, net of issuance cost of nil		39,967	¥ 120,000
Accretion to redemption value	$ 1,654	10,792	821
Conversion into Class A ordinary shares upon IPO		¥ (171,580)
Ending balance			120,821
Issuance cost			¥ 0

ORDINARY SHARES (Details)

ORDINARY SHARES (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands	Oct. 12, 2020shares	Oct. 08, 2020shares	Oct. 31, 2020shares	Dec. 31, 2020USD ($)Vote$ / sharesshares	Dec. 31, 2020CNY (¥)shares	Dec. 31, 2019$ / sharesshares	Dec. 31, 2018shares	Dec. 31, 2017shares
Class of Stock [Line Items]
Ordinary shares issued at par value | $ / shares				$ 0.0001		$ 0.0001
Aggregate carrying value				$ 26,296	¥ 171,580
Number of shares authorized						500,000,000
Ordinary shares shares issued						215,053,763
Ordinary shares, shares outstanding						215,053,763
Class A ordinary shares
Class of Stock [Line Items]
Share issuance upon IPO net of issuance cost (Note 12) (in shares)	5,250,000	35,000,000
Shares converted			11,318,619	11,318,619	11,318,619
Common shares, votes per share | Vote				1
Number of shares authorized				700,000,000
Ordinary shares shares issued				122,622,382
Ordinary shares, shares outstanding				122,622,382
Class B ordinary shares
Class of Stock [Line Items]
Common shares, votes per share | Vote				10
Number of shares authorized				200,000,000
Ordinary shares shares issued				144,000,000
Ordinary shares, shares outstanding				144,000,000
ADS
Class of Stock [Line Items]
Share issuance upon IPO net of issuance cost (Note 12) (in shares)	1,050,000	7,000,000
Shares of such class
Class of Stock [Line Items]
Number of shares authorized				100,000,000
Ordinary shares
Class of Stock [Line Items]
Share issuance upon IPO net of issuance cost (Note 12) (in shares)				40,250,000	40,250,000
Shares converted				11,318,619	11,318,619
Aggregate carrying value | ¥					¥ 8
Number of shares authorized				1,000,000,000
Ordinary shares shares issued						215,053,763
Ordinary shares, shares outstanding				266,622,382		215,053,763	160,000,000	160,000,000
Ordinary shares | Class A ordinary shares
Class of Stock [Line Items]
Ordinary shares shares issued				122,622,382
Ordinary shares | Class B ordinary shares
Class of Stock [Line Items]
Ordinary shares, shares outstanding				144,000,000

SHARE BASED PAYMENTS, Share inc

SHARE BASED PAYMENTS, Share incentive plan (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2019shares	Dec. 31, 2020USD ($)shares	Dec. 31, 2020CNY (¥)shares	Dec. 31, 2019CNY (¥)shares	Dec. 31, 2018CNY (¥)	Dec. 31, 2020CNY (¥)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares reserved	19,684,555
Contractual term	10 years
Share-based compensation expenses		$ 12,244	¥ 79,891	¥ 270,541
Exercise of options		0	0	0
Fair value of share options vested		$ 7,290	¥ 49,835	¥ 0	¥ 0
Unrecognized share-based compensation expense		$ 6,884				¥ 44,915
Weighted-average vesting period		2 years 6 months 22 days	2 years 6 months 22 days
Performance condition awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expenses | ¥			¥ 73,378

SHARE BASED PAYMENTS, option ac

SHARE BASED PAYMENTS, option activities (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of options
Number of options, Outstanding, Beginning balance	4,882,343
Number of options, Granted	9,763,248
Number of options, Forfeited	(480,623)
Number of options, Exercised	0	0
Number of options, Outstanding, Ending balance	14,164,968	4,882,343
Number of options, Vested and expected to vest	14,164,968
Number of options, Exercisable	3,200,000
Weighted average exercise price
Weighted average exercise price, Outstanding, Beginning balance	$ 0.5
Weighted average exercise price, Granted	1.09
Weighted average exercise price, Forfeited	1.37
Weighted average exercise price, Outstanding, Ending balance	0.88	$ 0.5
Weighted average exercise price,Vested and expected	0.88
Weighted average exercise price, Exercisable	0.05
Weightedaverage grantdate fair value
Weightedaverage grantdate fair value, Outstanding, Beginning balance	0.65
Weightedaverage grantdate fair value, Granted	1.58
Weightedaverage grantdate fair value, Forfeited	1.04
Weightedaverage grantdate fair value, Outstanding, Ending balance	1.28	$ 0.65
Weightedaverage grantdate fair value, Vested and expected	1.28
Weightedaverage grantdate fair value, Exercisable	$ 2.28
Weighted average remaining contractual term and aggregate intrinsic value
Weighted average remaining contractual term (Years)	8 years 11 months 5 days	9 years 1 month 24 days
Weighted average remaining contractual term granted (Years)	9 years 3 months 29 days
Weighted average remaining contractual term vested and expected (Years)	8 years 11 months 5 days
Weighted average remaining contractual term Exercisable (Years)	9 years 8 months 9 days
Aggregate intrinsic value, Outstanding, Beginning balance	$ 6,990
Aggregate intrinsic value, Outstanding, Ending balance	38,899	$ 6,990
Aggregate intrinsic value, Vested and Expected	38,899
Aggregate intrinsic value, Exercisable	$ 11,437

SHARE BASED PAYMENTS, fair valu

SHARE BASED PAYMENTS, fair value of options (Details)	12 Months Ended
	Dec. 31, 2020$ / shares	Dec. 31, 2019$ / shares
The assumptions used to estimate the fair value of the options granted
Riskfree rate, Minimum	0.69%	1.92%
Riskfree rate, Maximum	0.84%	2.69%
Expected volatility range, Minimum	50.87%	48.00%
Expected volatility range, Maximum	51.22%	48.10%
Exercise multiple		2.2
Minimum
The assumptions used to estimate the fair value of the options granted
Fair value per ordinary share as at valuation date	$ 1.30	$ 0.73
Exercise multiple	2.2
Maximum
The assumptions used to estimate the fair value of the options granted
Fair value per ordinary share as at valuation date	$ 5.55	$ 1.93
Exercise multiple	2.8

SHARE BASED PAYMENTS, other sha

SHARE BASED PAYMENTS, other share based compensation (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2019CNY (¥)¥ / sharesshares	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 12,244	¥ 79,891	¥ 270,541
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		291	1,897
Research and development expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		2,988	19,499	76,301
Sales and marketing expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		438	2,858	25,892
General and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 8,527	¥ 55,637	168,348
Award for past services
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares vested and issued | shares	55,053,763
Proceeds received from issuance of shares for share-based awards	¥ 3,441
Share-based compensation expense				¥ 270,541
Award for past services | Tianjin Hongen
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per ordinary share as at valuation date | ¥ / shares	¥ 4.98

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2020CNY (¥)¥ / sharesshares	Dec. 31, 2019CNY (¥)¥ / sharesshares	Dec. 31, 2018CNY (¥)¥ / sharesshares
Numerator:
Net loss	$ (5,742)	¥ (37,476)	¥ (275,597)	¥ (17,604)
Accretion to redemption value of contingently redeemable ordinary shares	(1,654)	(10,792)	(821)
Net loss attributable to ordinary shareholders-basic and diluted	$ (7,396)	¥ (48,268)	¥ (276,418)	¥ (17,604)
Denominator:
Weighted average number of shares outstanding-basic and diluted	226,339,320	226,339,320	181,427,603	160,000,000
Basic and diluted loss per share | (per share)	$ (0.03)	¥ (0.21)	¥ (1.52)	¥ (0.11)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) ¥ in Thousands, $ in Thousands	1 Months Ended		12 Months Ended
	Oct. 31, 2020USD ($)	Oct. 31, 2020CNY (¥)	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)	Dec. 31, 2018CNY (¥)	Dec. 31, 2020CNY (¥)	Jan. 31, 2018
Related Party Transaction [Line Items]
Assets transferred to related parties			$ 1,288	¥ 8,405
Proceeds from loans from related parties					¥ 2,000	¥ 34,700
Repayments of loans from related parties					63,819	13,500
Amounts due from related parties			49		867		¥ 322
Amounts due to related parties			74		69,431		485
Gain loss recognized		¥ 0
Hongen Kindergartens
Related Party Transaction [Line Items]
Research and development outsourcing services from related parties			58	381
Hongen Kindergartens | Learning materials and devices
Related Party Transaction [Line Items]
Sales to related parties			203	1,326	1,624	726
Perfect World Group
Related Party Transaction [Line Items]
Rental, administrative and other services from related parties			237	1,543	2,299	1,273
Assets transferred to related parties	$ 1,288	¥ 8,405	1,288	8,405
Amounts due to related parties			55		3,248		358
Shihezi Happy Forever
Related Party Transaction [Line Items]
Proceeds from loans from related parties						24,700
Repayments of loans from related parties					51,819	13,500
Accumulative balance						51,819
Hongen Education
Related Party Transaction [Line Items]
Amounts due from related parties			49		867		322
Amounts due to related parties			$ 19		66,183		¥ 127
Cash consideration				¥ 66,000
Two shareholders
Related Party Transaction [Line Items]
Proceeds from loans from related parties					2,000	¥ 10,000
Repayments of loans from related parties					¥ 12,000
Loan facility term								2 years

RESTRICTED NET ASSETS (Details)

RESTRICTED NET ASSETS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020CNY (¥)	Dec. 31, 2019CNY (¥)
RESTRICTED NET ASSETS
Minimum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund	10.00%	10.00%
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund	50.00%	50.00%
Minimum percentage of after-tax profit transferred by VIEs to statutory reserve fund	10.00%	10.00%
Maximum percentage criteria for in appropriation of after-tax profit by VIEs to certain statutory reserve funds	50.00%	50.00%
Amount appropriated	$ 79	¥ 517	¥ 0
Net assets subject to restriction	$ 23,595	¥ 153,958
Restricted Investments, Percent of Net Assets	23.96%	23.96%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Commitments for purchase obligations (Details) ¥ in Thousands	Dec. 31, 2020CNY (¥)
Purchase commitments
Total	¥ 16,200
Less than 1 Year	12,200
1-3 Years	4,000
Total commitments
Total	16,200
Less than 1 Year	12,200
1-3 Years	¥ 4,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) ¥ in Millions	Mar. 31, 2021CNY (¥)
Subsequent event
SUBSEQUENT EVENTS
Revolving line of credit	¥ 100