Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Jianzhi Education Technology Group Company Limited |
Document Type | 20-F/A |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 121,110,000 |
Amendment Flag | true |
Amendment Description | Amendment No.1 |
Entity Central Index Key | 0001852440 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-41445 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 27/F, Tower A |
Entity Address, Address Line Two | Yingdu Building |
Entity Address, Address Line Three | Zhichun Road Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100086 |
Entity Address, Country | CN |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | WWC, P.C. |
Auditor Firm ID | 1171 |
Auditor Location | San Mateo, California |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 27/F, Tower A |
Entity Address, Address Line Two | Yingdu Building |
Entity Address, Address Line Three | Zhichun Road Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100086 |
Entity Address, Country | CN |
Contact Personnel Name | Wang, Chief Financial Officer |
City Area Code | +86 |
Local Phone Number | 185 1318 9146 |
Contact Personnel Email Address | wanghuichao@jiuye.net |
American Depositary Shares, each representing six ordinary shares, par value US$0.0001 per share | |
Document Information Line Items | |
Trading Symbol | JZ |
Title of 12(b) Security | American Depositary Shares, each representing six ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NASDAQ |
Class A ordinary shares, par value US$0.0001 per share | |
Document Information Line Items | |
Title of 12(b) Security | Ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 18,175,959 | $ 2,560,030 | ¥ 65,055,278 |
Accounts receivable, net | 4,912,020 | 691,844 | 17,173,021 |
Inventories | 399,439 | ||
Short-term prepayments | 77,950,037 | 10,979,033 | 254,493,399 |
Short-term investments | 4,223,894 | 594,923 | 4,080,000 |
Prepaid expenses and other current assets | 14,914,484 | 2,100,662 | 9,518,326 |
Total current assets | 122,348,959 | 17,232,491 | 351,771,332 |
Non-current assets: | |||
Right-of-use assets, net | 7,604,933 | 1,071,132 | |
Deferred tax assets, net | 11,226,164 | 1,581,172 | 9,176,875 |
Property and equipment, net | 213,369 | 30,052 | 153,880 |
Educational contents, net | 214,441,814 | ||
Intangible assets, net | 1,257,860 | 177,166 | |
Other non-current assets | 219,416 | 30,904 | |
Long-term prepayments | 8,815,919 | 1,241,696 | 151,779,105 |
Total non-current assets | 29,337,661 | 4,132,122 | 375,551,674 |
Total assets | 151,686,620 | 21,364,613 | 727,323,006 |
Current liabilities: | |||
Accounts payable | 11,524,904 | 1,623,249 | 8,037,004 |
Contract liabilities | 86,731,977 | 12,215,943 | 290,028,010 |
Salary and welfare payable | 3,170,255 | 446,521 | 2,302,646 |
Income taxes payable | 4,474,575 | 636,695 | 1,170,795 |
Value added tax (“VAT”) and other tax payable | 2,198,217 | 303,148 | 4,063,389 |
Other payables | 3,506,282 | 493,849 | 2,658,243 |
Lease liabilities, current | 3,482,876 | 490,553 | |
Total current liabilities | 162,594,710 | 22,900,985 | 360,971,544 |
Non-current liabilities: | |||
Deferred tax liabilities | 2,274,256 | 320,322 | |
Lease liabilities, non-current | 4,035,598 | 568,402 | |
Total non-current liabilities | 6,309,854 | 888,724 | |
Total liabilities | 168,904,564 | 23,789,709 | 360,971,544 |
Commitments and contingencies | |||
Shareholders’ equity (deficit) | |||
Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized, 121,110,000 and 121,110,000 issued and outstanding as of December 31, 2022 and 2023) | 77,747 | 12,111 | 77,747 |
Additional paid-in capital | 238,567,906 | 33,600,426 | 242,093,942 |
Statutory reserves | 23,557,710 | 3,318,034 | 23,599,304 |
Retained earnings (accumulated deficit) | (291,805,140) | (41,099,902) | 81,822,029 |
Accumulated other comprehensive income | 6,096,465 | 858,678 | 2,520,630 |
Total Jianzhi Education Technology Group Company Limited’s shareholders’ equity (deficit) | (23,505,312) | (3,310,653) | 350,113,652 |
Noncontrolling interests | 6,287,368 | 885,557 | 16,237,810 |
Total shareholders’ equity (deficit) | (17,217,944) | (2,425,096) | 366,351,462 |
Total liabilities and shareholders’ equity (deficit) | 151,686,620 | 21,364,613 | 727,323,006 |
Related Party | |||
Current assets: | |||
Amount due from related parties | 2,172,565 | 305,999 | 1,051,869 |
Current liabilities: | |||
Amount due to related parties | ¥ 47,505,624 | $ 6,691,027 | ¥ 52,711,457 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) | Dec. 31, 2023 ¥ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 ¥ / shares shares |
Statement of Financial Position [Abstract] | |||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ 0.0001 | $ 0.0001 | ¥ 0.0001 |
Ordinary shares authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Ordinary shares issued | 121,110,000 | 121,110,000 | 121,110,000 |
Ordinary shares outstanding | 121,110,000 | 121,110,000 | 121,110,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Income Statement [Abstract] | ||||
Net revenues | ¥ 440,536,632 | $ 62,048,287 | ¥ 505,724,311 | ¥ 473,247,283 |
Cost of revenues | (424,345,616) | (59,767,805) | (511,265,334) | (369,052,134) |
Gross profit (loss) | 16,191,016 | 2,280,482 | (5,541,023) | 104,195,149 |
Operating expenses: | ||||
Sales and marketing expenses | 7,590,244 | 1,069,064 | 7,087,625 | 7,576,963 |
General and administrative expenses | 22,186,942 | 3,124,973 | 53,215,813 | 19,476,375 |
Research and development expenses | 11,761,358 | 1,656,553 | 15,568,768 | 26,355,055 |
Impairment of goodwill | 7,712,011 | |||
Impairment of long-term prepayments | 155,307,333 | 21,874,580 | ||
Impairment of intangible assets | 4,641,741 | 653,776 | 12,139,226 | |
Impairment of educational contents | 197,466,973 | 27,812,641 | 106,182,780 | |
Total operating expenses | 398,954,591 | 56,191,587 | 201,906,223 | 53,408,393 |
Income (loss) from operations | (382,763,575) | (53,911,105) | (207,447,246) | 50,786,756 |
Other income (expenses): | ||||
Investment income | 600,375 | 84,561 | 603,058 | 569,737 |
Interest expenses, net | (1,357,399) | (191,186) | (2,088,467) | (892,906) |
Other expenses, net | (41,621) | (5,862) | (286,522) | (12,563) |
Government grants | 960,224 | 135,245 | 1,656,077 | 6,753,388 |
Total other income (loss), net | 161,579 | 22,758 | (115,854) | 6,417,656 |
Income (loss) before income tax | (382,601,996) | (53,888,347) | (207,563,100) | 57,204,412 |
Income tax (expense) benefits | (211,267) | (29,756) | 10,980,054 | (4,273,788) |
Net income (loss) | (382,813,263) | (53,918,103) | (196,583,046) | 52,930,624 |
Net income (loss) attributable to noncontrolling interests | (9,312,526) | (1,311,642) | 2,578,761 | 4,672,355 |
Net income (loss) attributable to the Jianzhi Education Technology Group Company Limited’s shareholders | (373,500,737) | (52,606,461) | (199,161,807) | 48,258,269 |
Net income (loss) | (382,813,263) | (53,918,103) | (196,583,046) | 52,930,624 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | 3,575,835 | 503,646 | 2,120,397 | 211,494 |
Total comprehensive income (loss) | (379,237,428) | (53,414,457) | (194,462,649) | 53,142,118 |
Net comprehensive income (loss) attributable to noncontrolling interests | (9,312,526) | (1,311,642) | 2,578,761 | 4,672,355 |
Comprehensive income (loss) attributable to the Jianzhi Education Technology Group Company Limited’s shareholders | ¥ (369,924,902) | $ (52,102,815) | ¥ (197,041,410) | ¥ 48,469,763 |
Earnings (loss) per share | ||||
Earnings per share, Basic (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (3.08) | $ (0.43) | ¥ (1.68) | ¥ 0.43 |
Weighted average number of shares | ||||
Weighted average number of shares, Basic (in Shares) | 121,110,000 | 121,110,000 | 118,512,969 | 111,110,000 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parentheticals) | 12 Months Ended | |||
Dec. 31, 2023 ¥ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2021 ¥ / shares shares | |
Income Statement [Abstract] | ||||
Earnings per share, Diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (3.08) | $ (0.43) | ¥ (1.68) | ¥ 0.43 |
Weighted average number of shares, Diluted | 121,110,000 | 121,110,000 | 118,512,969 | 111,110,000 |
Consolidation Statements of Cha
Consolidation Statements of Changes in Equity | Ordinary shares CNY (¥) shares | Ordinary shares USD ($) shares | Additional paid-in capital CNY (¥) | Additional paid-in capital USD ($) | Statutory reserves CNY (¥) | Statutory reserves USD ($) | Retained earnings (Accumulated Deficit) CNY (¥) | Retained earnings (Accumulated Deficit) USD ($) | Accumulated other comprehensive income CNY (¥) | Accumulated other comprehensive income USD ($) | Non controlling interests CNY (¥) | Non controlling interests USD ($) | CNY (¥) shares | USD ($) shares |
Balance in US$ (in Dollars) | ¥ 63,291 | ¥ 52,927,738 | ¥ 20,977,351 | ¥ 235,347,520 | ¥ 188,739 | ¥ 8,986,694 | ¥ 318,491,333 | |||||||
Balance at Dec. 31, 2020 | ¥ 63,291 | 52,927,738 | 20,977,351 | 235,347,520 | 188,739 | 8,986,694 | 318,491,333 | |||||||
Balance (in Shares) at Dec. 31, 2020 | shares | 100,000,000 | 100,000,000 | ||||||||||||
Net income (loss) | 48,258,269 | 4,672,355 | 52,930,624 | |||||||||||
Appropriation to statutory reserves | 2,621,953 | (2,621,953) | ||||||||||||
Deemed capital contribution from a shareholder for waive of interest expenses | 1,118,170 | 1,118,170 | ||||||||||||
Foreign currency translation adjustments | 211,494 | 211,494 | ||||||||||||
Balance at Dec. 31, 2021 | ¥ 63,291 | 54,045,908 | 23,599,304 | 280,983,836 | 400,233 | 13,659,049 | 372,751,621 | |||||||
Balance (in Shares) at Dec. 31, 2021 | shares | 100,000,000 | 100,000,000 | ||||||||||||
Balance in US$ (in Dollars) | ¥ 63,291 | 54,045,908 | 23,599,304 | 280,983,836 | 400,233 | 13,659,049 | 372,751,621 | |||||||
Issuance of ordinary shares in connection with IPO | ¥ 6,848 | 140,690,442 | 140,697,290 | |||||||||||
Issuance of ordinary shares in connection with IPO (in Shares) | shares | 10,000,000 | 10,000,000 | ||||||||||||
Conversion of redeemable ordinary shares | ¥ 7,608 | 45,977,268 | 45,984,876 | |||||||||||
Conversion of redeemable ordinary shares (in Shares) | shares | 11,110,000 | 11,110,000 | ||||||||||||
Net income (loss) | (199,161,807) | 2,578,761 | (196,583,046) | |||||||||||
Deemed capital contribution from a shareholder for waive of interest expenses | 1,380,324 | 1,380,324 | ||||||||||||
Foreign currency translation adjustments | 2,120,397 | 2,120,397 | ||||||||||||
Balance at Dec. 31, 2022 | ¥ 77,747 | 242,093,942 | 23,599,304 | 81,822,029 | 2,520,630 | 16,237,810 | ¥ 366,351,462 | |||||||
Balance (in Shares) at Dec. 31, 2022 | shares | 121,110,000 | 121,110,000 | 121,110,000 | 121,110,000 | ||||||||||
Balance in US$ (in Dollars) | ¥ 77,747 | 242,093,942 | 23,599,304 | 81,822,029 | 2,520,630 | 16,237,810 | ¥ 366,351,462 | |||||||
Net income (loss) | (373,500,737) | (9,312,526) | (382,813,263) | $ (53,918,103) | ||||||||||
Disposal of a subsidiary | (168,026) | (637,916) | (805,942) | |||||||||||
Conversion of mezzanine equity | (4,522,022) | (4,522,022) | ||||||||||||
Appropriation to statutory reserves | 126,432 | (126,432) | ||||||||||||
Deemed capital contribution from a shareholder for waive of interest expenses | 995,986 | 995,986 | ||||||||||||
Foreign currency translation adjustments | 3,575,835 | 3,575,835 | ||||||||||||
Balance at Dec. 31, 2023 | ¥ 77,747 | $ 12,111 | 238,567,906 | $ 33,600,426 | 23,557,710 | $ 3,318,034 | (291,805,140) | $ (41,099,902) | 6,096,465 | $ 858,678 | 6,287,368 | $ 885,557 | ¥ (17,217,944) | $ (2,425,096) |
Balance (in Shares) at Dec. 31, 2023 | shares | 121,110,000 | 121,110,000 | 121,110,000 | 121,110,000 | ||||||||||
Balance in US$ (in Dollars) | ¥ 77,747 | $ 12,111 | ¥ 238,567,906 | $ 33,600,426 | ¥ 23,557,710 | $ 3,318,034 | ¥ (291,805,140) | $ (41,099,902) | ¥ 6,096,465 | $ 858,678 | ¥ 6,287,368 | $ 885,557 | ¥ (17,217,944) | $ (2,425,096) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income (loss) | ¥ (382,813,263) | $ (53,918,103) | ¥ (196,583,046) | ¥ 52,930,624 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation of property and equipment | 40,984 | 5,772 | 60,837 | 78,000 |
Loss from disposal of property and equipment | 6,486 | 914 | ||
Loss from dissolution of a subsidiary | 2,125,365 | 299,351 | ||
Amortization of educational contents | 53,922,689 | 7,594,852 | 91,542,454 | 45,296,565 |
Impairment of educational contents | 197,466,973 | 27,812,641 | 106,182,780 | |
Impairment of long-term prepayments | 155,307,333 | 21,874,580 | ||
Amortization of intangible assets | 2,074,929 | 292,248 | 16,840,435 | 6,656,298 |
Impairment of intangible assets | 4,641,741 | 653,776 | 12,139,226 | |
Impairment of goodwill | 7,712,011 | |||
Amortization of operating lease right-of-use assets | 1,745,000 | 245,778 | 300,024 | 2,362,967 |
Deemed interest expenses on shareholder contribution | 1,347,705 | 189,820 | ||
(Reversal of provision) provision for doubtful accounts | 1,452,422 | 204,569 | 34,901,498 | (119,539) |
Deferred tax benefit (expense) | 211,267 | 29,756 | (10,980,054) | (649,078) |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 11,218,018 | 1,580,025 | 52,700,747 | 10,148,705 |
Inventories | 1,560,838 | 15,655 | ||
Prepaid expenses and other current assets | (10,917,270) | (1,537,665) | 3,127,291 | (2,197,407) |
Short-term prepayments | 176,543,547 | 24,865,639 | 33,608,121 | (285,437,271) |
Other non-current assets | (219,417) | (30,904) | ||
Accounts payable | 3,487,900 | 491,260 | (16,249,305) | 1,059,057 |
Salary and welfare payable | 867,609 | 122,200 | (1,108,840) | 9,831 |
Contract liabilities | (203,296,033) | (28,633,647) | (37,271,217) | 319,904,579 |
Income taxes payable | 3,531,193 | 497,358 | (2,572,452) | 2,822,268 |
VAT and other tax payable | (1,865,172) | (262,704) | 1,393,981 | (1,122,235) |
Other payables | 111,409 | 15,689 | (2,787,853) | (1,964,796) |
Lease liabilities | (1,831,459) | (257,956) | (295,367) | (2,020,636) |
Net cash provided by (used in) operating activities | 15,159,956 | 2,135,249 | 94,222,109 | 147,773,587 |
Cash flows from investing activities: | ||||
Purchase of short-term investments | (22,155,849) | (3,120,586) | (3,850,000) | (24,405,127) |
Proceeds from redemption of short-term investment | 22,011,955 | 3,100,319 | 11,200,000 | 83,655,127 |
Purchase of property and equipment | (106,959) | (15,065) | (76,280) | |
Repayment of loans from a related party | 70,453 | 9,923 | ||
Purchase of educational contents | (54,985,130) | (7,744,494) | (176,597,637) | (64,811,320) |
Prepayment for educational contents | (46,223,984) | (139,002,868) | ||
Loans made to a third party | (3,015,018) | |||
Net cash used in investing activities | (55,165,530) | (7,769,903) | (218,486,639) | (144,640,468) |
Cash flows from financing activities: | ||||
Repayment to related parties | (7,248,140) | (1,020,879) | (17,064,116) | |
Borrowing from related parties | 452 | 64 | 48,808,057 | |
Net proceeds raised in connection with initial public offering | 146,982,044 | |||
Payments of issuance cost in relation with initial public offering | (481,408) | (8,621,261) | ||
Advance to a related party for issuance costs in relation with initial public offering | (2,512,809) | |||
Refund from a related party for issuance costs in relation with initial public offering | 1,421,881 | |||
Deposits made to a redeemable ordinary shareholder | (4,296,606) | |||
Net cash provided by (used in) financing activities | (7,247,688) | (1,020,815) | 126,561,795 | 37,673,987 |
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | 373,943 | 52,655 | 1,491,231 | (489,011) |
Net increase (decrease) in cash and cash equivalents | (46,879,319) | (6,602,814) | 3,788,496 | 40,318,095 |
Cash and cash equivalents at beginning of the year | 65,055,278 | 9,162,844 | 61,266,782 | 20,948,687 |
Cash and cash equivalents at end of the year | 18,175,959 | 2,560,030 | 65,055,278 | 61,266,782 |
Supplemental disclosures of cash flows information: | ||||
Cash paid for income taxes | 30,032 | 4,230 | 1,177,693 | 2,617,807 |
Cash paid for interest expenses | ||||
Non-cash Investing and Financing activities: | ||||
Transfer of prepaid issuance cost to additional paid-in capital | ¥ 8,943,892 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Business Description [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION Jianzhi Education Technology Group Company Limited (The “Company”) was incorporated in the Cayman Islands and registered as an exempted company with limited liability under the Companies Law of the Cayman Islands on March 12, 2018. On August 25, 2022, the Company closed of its initial public offering (“IPO”) of 5,000,000 American Depositary Shares (the “ADS”) at a public offering price of US$5.00 per ADS for the total gross proceeds of US$25 million (RMB 171.2 million). The Company raised net proceeds of US$21.5 million (RMB 148.0 million). Each ADS represents two ordinary shares of the Company. The ADSs began trading on August 26, 2022 on the Nasdaq Stock Market under the ticker symbol “JZ”. As of December 31, 2023, the Company’s major subsidiaries, VIE and VIE’s subsidiaries are as follows: Place and date of Percentage of Issued and fully Name establishment Directly Indirectly share capital Principal activities Jianzhi Education Group Company Limited British Virgin Islands (“BVI”), limited liability company March 20, 2018 100 % — USD1 Investment holding Jianzhi Education Technology (HK) Company Limited (“Jianzhi HK”) Hong Kong, limited liability company April 3, 2018 — 100% owned by Jianzhi Education (BVI) HKD1 Investment holding Jianzhi Inc. USA, limited liability company November 2 2022 — 100% owned by Jianzhi Education (BVI) USD1 Investment holding HongKong Sentu Education Technology Ltd. (“Sentu HK”) Hong Kong, November 14, 2016 — 100% owned by Jianzhi Education (HK) HKD10,000,000 Provision of training service Jianzhi Century Technology (Beijing) Co., Ltd. PRC, April 17, 2018 — 100% owned by Jianzhi Education (HK) HKD10,000,000 Provision of technical and management consultancy services Beijing Sentu Lejiao Information Technology Co., Ltd (“Sentu Lejiao”) PRC, June 13, 2016 100% owned by Jianzhi Beijing RMB10,000,000 Provision of IT related solution service Sentu Shuzhi Technology (Beijing) Co., Ltd (“Sentu Shuzhi”) PRC, June 2, 2021 100% owned by Sentu Lejiao — Provision of IT related solution service Beijing Sentu Education Technology Co., Ltd.(“Beijing Sentu”) PRC, May 27, 2011 Contractual arrangements RMB26,100,000 Provision of educational content and IT related solution services Shanghai Ang’you Internet Technology Co., Ltd. PRC, January 11, 2016 — 51.2% owned by Beijing Sentu RMB10,500,000 Provision of mobile media services and educational content Guangzhou Xingzhiqiao Information Technology Co., Ltd. PRC, May 6, 2011 100% owned by Beijing Sentu RMB1,000,000 Provision of mobile media services Sentu Guoxin Education Technology (Beijing) Co., Ltd (“Sentu Guoxin”) PRC, December 5, 2016 70% owned by Beijing Sentu RMB2,000,000 Provision of technology, education consultancy (excluding agent services) services Guangzhou Lianhe Education Technology Co., Ltd PRC, September 28, 2016 — 100% owned by Guangzhou Xingzhiqiao RMB300,000 Provision of mobile media services and educational content Wuhan Crossboarder Information Co., Ltd. PRC, December 2, 2022 51% owned by Sentu Guoxin RMB nil Provision of technology, education consultancy (excluding agent services) services Dissolution of a subsidiary During the year ended December 31, 2023, the Company’s board of directors approved dissolution of Sentu Guoxin Education Technology (Beijing) Co., Ltd (“Sentu Guoxin”), over which the Company owned 70% equity interest. Upon the dissolution of Sentu Guoxin, the Company would continue to focus on provision of educational content and IT related solution services. The management believed the deconsolidation does not represent a strategic shift, in both operating and financing aspects, because it is not changing the way it is running its business. The Company has not shifted the nature of its operations or the major geographic market area. The management believed the deconsolidation of does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. The deconsolidation is not accounted as discontinued operations in accordance with ASC 205-20. The Company recorded loss of RMB 2,125,365 from dissolution of the subsidiary. VIE arrangements The Company and its subsidiaries, VIE and VIE’s subsidiaries are under the control of Ms. Wang Peixuan (“Ms. Wang”), of which Ms. Wang effectively owns 54.78% interests in Beijing Sentu. In preparation for listing in a stock market of the United States of America, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries as a group underwent a reorganization through entering into various contractual arrangements (the “Contractual Arrangements”), which, effective from June 26, 2018, between Jianzhi Beijing, Beijing Sentu and their respective equity holders (the “Corporate Reorganization”) due to regulatory restrictions on foreign ownership in the radio and television program production and operation business and value-added telecommunications business in the PRC. The described contractual arrangements are as follows: ● Exclusive Business Cooperation Agreement. ● Exclusive Call Option Agreement. The Registered Shareholders and Beijing Sentu have jointly and severally further undertaken to Jianzhi Beijing that, without the prior written consent of Jianzhi Beijing, they shall not (i) in any manner supplement, change or amend the constitutional documents of Beijing Sentu, increase or decrease its share capital, or change the structure of its registered capital in other manner; (ii) sell, pledge, transfer or otherwise dispose of any assets, business or lawful revenue or create encumbrance over Beijing Sentu; (iii) incur, inherit, guarantee or assume any debt, except for debts incurred in the ordinary course of business other than payables incurred by a loan and for debts disclosed to and agreed in writing by Jianzhi Beijing; (iv) cause Beijing Sentu to execute any material contract with a value above RMB100,000, except the contracts executed in the ordinary course of business; (v) cause Beijing Sentu to provide any person with any loan, credit or guarantee; (vi) cause or permit Beijing Sentu to merge, consolidate with, acquire or invest in any person, or sell assets of Beijing Sentu with a value above RMB100,000; (vii) cause Beijing Sentu to enter into any transaction which may have substantial impact on the assets, liabilities, business operation, shareholding structure and other legal rights of Beijing Sentu, except the contracts executed in the ordinary course of business; and (viii) in any manner distribute dividends to their shareholders, provided that upon the written request of Jianzhi Beijing, Beijing Sentu shall immediately distribute all distributable profits to its shareholders. The Exclusive Call Option Agreement shall remain effective unless terminated (i) in accordance with the provisions of the Exclusive Call Option Agreement or any other supplemental agreements; or (ii) the entire equity interests held by Registered Shareholders in Beijing Sentu have been transferred to Jianzhi Beijing or its designated person. ● Exclusive Assets Option Agreement. ● Voting Rights Proxy Agreement. ● Equity Pledge Agreement. The said equity pledge under the Equity Pledge Agreement takes effect upon the completion of registration with relevant administrative department of industry and commerce and shall remain valid until after all the contractual obligations of the Registered Shareholders and Beijing Sentu under the relevant Contractual Arrangements have been fully performed and all the outstanding debts of the Registered Shareholders and/or Beijing Sentu under the relevant Contractual Arrangements have been fully paid. The Company believes that Beijing Sentu is considered a VIE under Accounting Codification Standards (“ASC”) 810 “Consolidation”, because the equity investors in Beijing Sentu no longer have the characteristics of a controlling financial interest, and the Company, through Jianzhi Beijing, is the primary beneficiary of Beijing Sentu and controls Beijing Sentu’s operations. Accordingly, Beijing Sentu has been consolidated as a deemed subsidiary into the Company as a reporting company under ASC 810. As required by ASC 810-10, the Company performs a qualitative assessment to determine whether the Company is the primary beneficiary of Beijing Sentu which is identified as a VIE of the Company. A quality assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity’s activities including terms of the contracts entered into by the entity, ownership interests issued by the entity and the parties involved in the design of the entity. The Company’s assessment of the involvement with Beijing Sentu reveals that the Company has the absolute power to direct the most significant activities that impact the economic performance of Beijing Sentu. Jianzhi Beijing is obligated to absorb a majority of the loss from Beijing Sentu activities and receive a majority of Beijing Sentu’s expected residual returns. In addition, Beijing Sentu’s shareholders have pledged their equity interest in Beijing Sentu to Jianzhi Beijing, irrevocably granted Jianzhi Beijing an exclusive option to purchase, to the extent permitted under PRC Law, all or part of the equity interests in Beijing Sentu and agreed to entrust all the rights to exercise their voting power to the person(s) appointed by Jianzhi Beijing. Under the accounting guidance, the Company is deemed to be the primary beneficiary of Beijing Sentu and the financial positions, the operating results and cash flows of Beijing Sentu and Beijing Sentu’s subsidiaries are consolidated in the Company for financial reporting purposes. Additionally, pursuant to ASC 805, as the Company and Beijing Sentu are under the common control, the corporate reorganization was accounted for in a manner similar to a pooling of interests. As a result, the Company’s historical amounts in the accompanying consolidated financial statements give retrospective effect to the Corporate Reorganization, whereby the assets and liabilities of the Beijing Sentu and its subsidiaries are reflected at the historical carrying values and their operations are presented as if the Corporate Reorganization had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. The carrying amounts of the assets, liabilities and the results of operations of the VIE and VIE’s subsidiaries included in the Company’s consolidated balance sheets and statements of income and comprehensive income, which are prepared before eliminating the inter-company balances and transactions between the VIE, the subsidiaries of the VIE and the Company and its subsidiaries, are as follows: December 31, December 31, RMB RMB Assets Current assets: Cash and cash equivalents 28,836,178 2,697,832 Accounts receivable, net 16,154,956 1,718,155 Inventories 4,867 - Short-term prepayments 17,269,868 264,425 Short-term investments 4,080,000 4,223,894 Prepaid expenses and other current assets 1,445,461 8,653,231 Amount due from the Company and its subsidiaries* 7,800,808 — Total current assets 75,592,138 17,557,537 Non-current assets: Right-of-use assets, net — 4,307,991 Deferred tax assets, net 9,086,144 10,157,608 Property and equipment, net 109,073 171,127 Educational contents, net 36,713,836 — Long-term prepayments 28,160,377 181,132 Total non-current assets 74,069,430 14,817,858 Total assets 149,661,568 32,375,395 * As of December 31, 2022 and 2023, amounts due from the Company and its subsidiaries represent the receivables that VIEs had with the Company and its consolidation subsidiaries, which would be eliminated upon consolidation. December 31, December 31, RMB RMB Liabilities Current liabilities: Accounts payable 6,737,217 6,099,637 Salary and welfare payable 876,492 1,333,666 Contract liabilities 28,195,618 14,013,525 Income taxes payable 3,816,703 1,073,181 Value added tax (“VAT”) and other tax payable — 3,937,133 Other payables 1,567,742 1,877,474 Lease liabilities, current — — Amount due to related parties 24,702,000 2,185,832 Amount due from the Company and its subsidiaries* — 1,228,446 Total current liabilities 65,895,772 31,748,894 Non-current liabilities: Deferred tax liabilities — 1,326,092 Account payable to WFOE — 2,080,868 Total non-current liabilities — 3,406,960 Total liabilities 65,895,772 35,155,854 For the years ended 2021 2022 2023 RMB RMB RMB Net revenues 355,513,276 227,046,277 91,618,100 Net income (loss) 14,780,648 (88,740,821 ) (83,941,158 ) For the years ended 2021 2022 2023 RMB RMB RMB Net cash provided by (used in) operating activities 20,840,090 13,119,714 (7,610,570 ) Net cash used in investing activities (18,093,127 ) (7,198,149 ) (18,527,776 ) Net cash used in financing activities (547,302 ) — — * As of December 31, 2022 and 2023, amounts to from the Company and its subsidiaries represent the payables that VIEs had with the Company and its consolidation subsidiaries, which would be eliminated upon consolidation. There are no pledge or collateralization of the VIE and VIE’s subsidiaries’ assets that can only be used to settled obligations of the VIE and VIE’s subsidiaries, except for the restricted net assets disclosed in Note 12. Relevant PRC laws and regulations restrict the VIE from transferring a portion of its net assets to the Company in the form of loans and advances or cash dividends. As the VIE is incorporated as limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the VIE in normal course of business. Risks in relation to the VIE structure The Company believes that the contractual arrangements with its VIE and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIE; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIE may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIE to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance. The Company’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE and VIE’s subsidiaries in its consolidated financial statements as it may lose the ability to exert control over the VIE and their respective shareholders and it may lose the ability to receive economic benefits from the VIE and VIE’s subsidiaries. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIE. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries in which WFOE is the primary beneficiary. The results of the subsidiaries are consolidated from the date on which the Company obtained control and continues to be consolidated until the date that such control ceases. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. However, if the Company demonstrates its ability to control the VIE through power to govern the activities which most significantly impact VIE’s economic performance and is obligated to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, then the entity is consolidated. All intercompany balances and transactions between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries continually evaluates its estimates, including, but are not limited to, those related to the allowance for doubtful accounts, recoverability and useful lives of copyrights and produced content, recoverability and useful lives of certain finite-lived intangible assets, recoverability and useful lives of long-lived assets, recoverability of indefinite-lived intangible assets, income taxes, and the valuation of equity transactions. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries bases its estimates on historical experience and on various other assumptions that it believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Functional currency and foreign currency translation The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries which incorporated in the Cayman Islands and Hong Kong is Hong Kong Dollar (“HK$”). The functional currency of the Company’s overseas subsidiaries, VIE and VIE’s subsidiaries which incorporated in PRC is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the periods. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive income in the consolidated statements of operations and comprehensive income (loss). Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. Convenience Translation The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive loss, change in shareholders’ deficit and cash flows from Renminbi (“RMB”) into US dollars as of and for the years ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate. Fair value of financial instruments The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries adopted the guidance of ASC 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: ● Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. ● Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. ● Level 3 — Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets of cash and cash equivalents, accounts receivable, other receivables, due from related parties, accounts payable, salary and welfare payable, income tax payable, VAT and other taxes payable, and other payables, approximate their fair market value based on the short-term maturity of these instruments. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2022 and 2023. Noncontrolling interests For the Company’s subsidiaries majority-owned by the Company’s VIE and VIE’s subsidiaries, noncontrolling interests are recognized to reflect the portion of the equity which is not attributable, directly or indirectly, to the Company as the controlling shareholder. Noncontrolling interests acquired through a business combination are recognized at fair value at the acquisition date, which is estimated with reference to the purchase price per share as of the acquisition date. Cash and cash equivalents Cash and cash equivalents primarily consist of cash, money market funds, investments in interest bearing demand deposit accounts, time deposits with terms of and less than three months. Short-term investments All highly liquid investments with maturities of greater than three months, but less than twelve months, are classified as short-term investments. Short-term investments primarily include wealth management financial products with variable interest issued by commercial banks with the intention to be sold within twelve months. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries account for short-term investments in accordance with ASC 320 and records at fair value. Interest income are reflected on the consolidated statements of operations and comprehensive income (loss). Accounts receivable, net of allowance Accounts receivable are amounts due from customers for goods delivered and services performed in the ordinary course of business and are recognized and carried at the original amount less an allowance for any potential uncollectible amounts. Accounts receivable balances are written off against allowances for doubtful accounts when they are determined to be uncollectible. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries generally do not require collateral from its customers. On January 1, 2023, the Company, Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Company, changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets. The adoption of the guidance had no impact on the allowance for credit losses for accounts receivable. Prior to the adoption of ASU 2016-13, accounts receivable are presented net of allowance for doubtful accounts. After the adoption of ASU 2016-13, the Company, maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the condensed consolidated statements of operations and comprehensive income (loss). Inventories Inventories comprise IT equipment, yet to deliver to customer at the end of the reporting period. Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in-first-out basis. Adjustments are recorded to write down the cost of inventories 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. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Write downs, if any, are recorded in cost of revenues in the consolidated statements of operations and comprehensive income (loss). As of December 31, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had inventory in the amount of RMB399,439 and $ nil nil nil Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations and comprehensive income (loss). The estimated useful lives are as follows: Leasehold improvement Shorter of lease terms and estimated useful lives Fixture and furniture 3 – 10 years Office equipment 3 – 5 years Motor vehicles 4 years As of December 31, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had property and equipment, net in the amount of RMB153,880 and RMB 213,369, respectively. For the years ended December 31, 2021, 2022 and 2023, depreciation expenses were in the amount of RMB 78,000, RMB 60,837, and RMB 40,984, respectively. Educational contents, net Educational contents are the copyrights owned by WFOE, VIE and VIE’s subsidiary. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries engage external professional makers to produce educational contents and they also purchase educational contents along with licensed copyrights from external parties. Educational contents are initially recognized at cost. Educational content are amortized by using a straight-line method based on historical and estimated usage patterns. These estimates are periodically reviewed and adjusted, if appropriate. Educational contents that have determinable lives continue to be amortized over their estimated useful lives as follows: Produced educational content 5 years Licensed copyrights Shorter of the licensed period or projected useful life of the content The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries review unamortized educational content costs for impairment whenever events or circumstances indicate that the carrying value may not be fully recoverable or that the useful life is shorter than it was originally estimated. Leases The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries adopted ASU No. 2016-02, Leases (Topic 842), and recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries elected to apply practical expedients permitted under the transition method that allow them to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries used modified retrospective method and did not adjust the prior comparative periods. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries determine if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries consider only payments that are fixed and determinable at the time of lease commencement. At the commencement date, the lease liability is recognized at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment annually. No impairment for right-of-use lease assets as of December 31, 2022 and 2023. Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its consolidated VIE’s subsidiaries. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event or circumstances change occurs that indicate the asset might be impaired. Under ASC 350-20-35, the Company and the VIE, the acquirer, have the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. If the Company and the VIE believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Company and the VIE consider primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the quantitative analysis indicates the carrying value of a reporting unit exceeds its fair value, the Company and the VIE measure any goodwill impairment losses as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. For the year ended December 31, 2022, Guangzhou Xingzhiqiao terminated business partnership with a major customer, therefore the Company assessed that it is more than likely that the fair value of the reporting unit would exceed its carrying amount. The Company provided full impairment of RMB 7,712,011 against goodwill for the year ended December 31, 2022. Impairment of long-lived assets other than goodwill Long-lived assets are evaluated 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 value of an asset may not be fully recoverable or that the useful life is shorter than it was originally estimated. When these events occur, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries evaluate the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, an impairment loss is recognized based on the excess of the carrying value of the assets over the fair value of the assets. For the years ended December 31, 2021, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries did not accrue impairment charge against educational contents. For the year ended December 31, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries accrued impairment charge of RMB 106,182,780 and RMB 197,466,973 against educational contents because certain contents were obsolete and the Company assessed it is not likely that end customers would subscribe for related educational contents. For the years ended December 31, 2021, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries did not accrue impairment charge against intangible assets, including the customer relationship and software and technology. The customer relationship arose from acquisition of Guangzhou Xingzhiqiao by the Beijing Sentu in 2018. For the year ended December 31, 2022, Guangzhou Xingzhiqiao terminated business partnership with a major customer, therefore the Company assessed that it is more than likely that the fair value of the reporting unit would exceed its carrying amount. The Company provided full impairment of RMB 10,714,000 against customer relationship for the year of 2022. For the year ended December 31, 2022 and 2023, the Company also provided impairment against software and technology of RMB1,425,226 and RMB4,641,741, respectively. Our current software and technology would not support newly purchased educational contents, and the Company assessed no future cash flow would be generated from the software and technology. Revenue recognition The core principle of ASC 606, Revenue from Contracts with Customers requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. This new guidance provides a five-step analysis in determining when and how revenue is recognized. Under the new guidance, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the new guidance requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries identify its contracts with customers and all performance obligations within those contracts. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries then determine the transaction price and allocates the transaction price to the performance obligations within the contracts with customers, recognizing revenue when, or as, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries satisfy its performance obligations. The adoption of ASC 606 did not significantly change (1) the timing and pattern of revenue recognition for all of the revenue streams, and (2) the presentation of revenue as gross versus net. Therefore, the adoption of ASC 606 did not have a significant impact on Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ financial position, results of operations, equity or cash flows as of the adoption date. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ revenue recognition policies effective upon the adoption of ASC 606 are as follows: Revenue from educational content service and other services The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries embed the digital educational content into various web-based or mobile-based online learning platforms to provide comprehensive educational resources or other services to education institutions and individual customers through B2B2C model or B2C model. Specifically, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries primarily provide subscription service, licensing service and other services. (i) Subscription revenue VIE and VIE’s subsidiaries generate subscription revenue primarily through (a) selling subscriptions to online learning platforms, to higher education institutions and other institutional customers under a B2B2C model mainly through the platform of Sentu Academy; (b) offering subscriptions concerning educational content in mobile video packages directly to end users under a B2C model through the platforms such as Fish Learning or Light Class etc. VIE and VIE’s subsidiaries’ contracts have a single performance obligation for an integrated service and the transaction price is stated in the contracts, usually as a price per end-customers or educational content. Quantity of end-customers enrolled or courses provided is determined before rendering service. The subscription period for a majority of the educational content services is less than 12 months. Customers can access to the educational content anytime during the subscription period. The performance obligation is providing educational content database access and is satisfied over the subscription period. The revenue was recognized based on a straight-line basis over the subscription period. Subscription services cannot be cancelled and is not refundable after enrollment. All estimates are based on the historical experience, complete satisfaction of the performance obligation, and the management’s best judgment at the time the estimates are made. Returns and allowances are not a significant aspect of the revenue recognition process as historically they have been immaterial. (ii) Licensing revenue WFOE and its subsidiaries, VIE and VIE’s subsidiaries generate licensing revenue primarily through licensing select content copyrights to institutional customers based on their needs and preferences under a B2B2C model. Institutional licenses primarily include educational institutions and non-educational institutions, such as libraries, contractors of educational content and video platforms. Licensing, different from subscriptions to learning platforms, allows customers to store the licensed educational content to their system and allow their students/users to access such educational content directly through their own systems. The institutional customers pay for access by their respective students, faculty members or library patrons, as the case may be individuals and generally pay a one-time licensing fee at the fixed price stated in the contract to receive such products. The VIE and VIE’s subsidiaries also license copyrights of the special limited content in mobile video packages directly to end mobile users under a B2C model through cooperating with a leading telecommunications provider in China. The end mobile users redeem their reward points at the telecommunications provider for the video packages and the telecommunications provider compensates the VIE and VIE’s subsidiaries at the fixed price for each video packages stated in the contract. Licensing revenue is recognized at the point in time when control of the select content copyrights is transferred to customer, usually at the time when their customers received the select content. WFOE and its subsidiaries, VIE and VIE’s subsidiaries typically satisfy its performance obligations in contracts with customers upon control of the select content copyrights is transferred to customer, usually at the time when their customers received the select content, and the revenue is recognized at a point in time when customer is able to direct use of and obtain substantially all of the benefits from the learning platforms at the time the services are delivered. (iii) Other services revenue Other services mainly include mobile media services, including mobile media advertising services etc. WFOE and its subsidiaries, VIE and VIE’s subsidiaries provide advertising services to customers on its mobile application in the form of pop-up ads and banners, and generates revenue from advertisements based on the posting period or based on the number of times viewers click on these advertisements etc. The promised services in each service contract are combined and accounted as a single performance obligation, as the promised services in a contract are not distinct and are considered as a significant integrated service. The VIE and VIE’s subsidiaries determine pricing for each contract separately. These services are recognized over time based on a straight-line basis over the period of services rendered as customers simultaneously receive and consume the benefits of these services throughout the service period. Returns and allowances are not a significant aspect of the revenue recognition process as historically they have been immaterial. For some contracts, the mobile media advertising revenue is generated based on the number of times viewers click on these advertisements or download the sponsor’s application to their phones or the number of days such advertisements are placed in the learning platform. Under much pricing model, the revenues are recognized at the point of time as the publishers deliver advertising services at the point in time. Net revenues presented on the consolidated statements of operations and comprehensive income (loss) are net of sales discount and sales tax. Revenue from IT related solution services WFOE and its subsidiaries, VIE and VIE’s subsidiaries derived revenue from IT related solution services through providing (i) design and development of customized IT system service; (ii) procurement and assembling of equipment needed to operate the customer’s systems; and (iii) technological support and maintenance service. The Company recognizes revenues on a gross basis as the Company is determined to be the primary obligor in fulfilling the contracts of IT related solution services initiated by the customer. WFOE and its subsidiaries, VIE and VIE’s subsidiaries contract with higher education institutions and other institutional customers to provide design and development of customized IT system service, normally within a year. The terms of pricing and payment stipulated in the contract are fixed. One performance obligation is identified in the contracts with customers as the design and development of customized IT system service are a series of service that are inputs used to create the customized IT system, which are not distinct in the context of the contract. Revenue is recognized at the point when the system or platform are completed and accepted by the customers. Upon delivery of services, project completion inspection and customer acceptance notice are required as proof of the completion of performance obligations, which is a confirmation of customer to its ability to direct the use of and obtain substantially all of the benefits from, the design and development service. In instances where substantive completion inspection and customer acceptance provisions are specified in contracts, revenues are deferred until all inspection and acceptance criteria have been met. WFOE and its subsidiaries, VIE and VIE’s subsidiaries generate revenue from procurement and assembling of equipment needed to operate the customer’s systems. The terms of pricing and payment stipulated in the contract are fixed. One performance obligation is identified in the contracts with customers as the equipment and related assembling services are both inputs used to create the customized equipment, which are not distinct in the context of the contract. Revenue is recognized at the point when the customized equipment are completed and accepted by the customers, normally within a year. Project completion inspection and customer acceptance notice are required as proof of the completion of performance obligations, which is a conformation of customer to its ability to direct the use of and obtain substantially all of the benefits from the systems. In instances where substantive completion inspection and customer acceptance provisions are specified in contracts, revenues are deferred until all inspection and acceptance criteria have been met. From time to time, WFOE and its subsidiaries enter into arrangement to provide technological support and maintenance service of online platforms to its customers at a price stated in contract. WFOE and its subsidiaries’ efforts are expended evenly throughout the service period. The revenues for the technological support and maintenance service are recognized over the support and maintenance services period, usually one year or less. The contracts have a single performance obligation and are primarily on a fixed-price basis. No significant returns, refund and other similar obligations during each reporting period. The following table summarizes disaggregated revenue from contracts with customers by service type: For the years ended 2021 2022 2023 RMB RMB RMB Revenue from educational content service and other services – Subscription revenue 148,041,259 59,217,081 16,385,013 – Licensing revenue 204,369,087 141,957,541 16,683,141 – Other services revenue 12,661,341 3,741,453 38,669,659 Subtotal 365,071,687 204,916,075 71,737,814 Revenue from IT related solution services 108,175,596 300,808,236 368,798,818 Total 473,247,283 505,724,311 440,536,632 The core principle underlying the revenue recognition ASU is that the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries will recognize revenue to represent the transfer of services to customers in an amount that reflects the consideration to which the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries expect to be entitled to in such exchange. This will require the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when services are provided to a customer. The following table summarizes disaggregated revenue from contracts with customers by timing of revenue recognition: For the years ended 2021 2022 2023 RMB RMB RMB Se |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 — ACCOUNTS RECEIVABLE, NET December 31, December 31, RMB RMB Accounts receivable 53,880,520 42,522,740 Allowance for credit losses (36,707,499 ) (37,610,720 ) Accounts receivable, net 17,173,021 4,912,020 The following table presents movement of the allowance for credit losses: December 31, December 31, RMB RMB Balance at the beginning of the year 1,806,001 36,707,499 Provisions 34,901,498 1,042,983 Write-offs — (139,762 ) Balance at the end of the year 36,707,499 37,610,720 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Investments [Abstract] | |
SHORT-TERM INVESTMENTS | NOTE 4 — SHORT-TERM INVESTMENTS As of December 31, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had short-term investments, which mainly consists of wealth management products purchased from commercial banks, in the amount of RMB 4,080,000 and RMB 4,223,849, respectively. These wealth management products bear a highest expected rate of return ranging from 2.60% – 4.35%, either can be redeemed at any time or bear an initial maturity of more than three months but less than one-year. For the years ended December 31, 2021, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries recorded investment income of RMB 569,737, RMB 603,058 and RMB 600,375 in the consolidated statements of operations and comprehensive income (loss), respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5 — PREPAID EXPENSES AND OTHER CURRENT ASSETS The prepaid expenses and other current assets consist of the following: December 31, December 31, RMB RMB Tax recoverable — 8,909,126 Deposits 5,824,379 1,675,632 Loan receivable due from a third party 3,101,910 4,000,000 Prepaid expense 523,039 228,477 Other receivables 68,998 101,249 9,518,326 14,914,484 |
Educational Contents, Net
Educational Contents, Net | 12 Months Ended |
Dec. 31, 2023 | |
Educational Contents Net [Abstract] | |
EDUCATIONAL CONTENTS, NET | NOTE 6 — EDUCATIONAL CONTENTS, NET Educational contents, net consist of the following: December 31, December 31, RMB RMB Produced educational contents 66,037,733 — Licensed copyrights 219,658,471 — Less: Accumulated amortization (71,254,389 ) — 214,441,814 — No impairment charge was recognized for the year ended December 31, 2021. For the year ended December 31, 2022, the Company assessed it is not likely that end customers would subscribe for related educational contents, which was mainly due to those contents already out of date. Accordingly, the Company charged impairment of RMB106,097,876 and RMB84,904 against purchased educational contents and licensed copyrights, respectively. For the year ended December 31, 2023, the Company further charged impairment of RMB 31,399,370 and RMB 166,067,603 against purchased educational contents and licensed copyrights, respectively. Amortization expense was RMB 91,542,455 and RMB 53,922,689 for the years ended December 31, 2022 and 2023, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7 — INTANGIBLE ASSETS, NET Intangible assets, stated at cost less accumulated amortization, consisted of the following December 31, December 31, RMB RMB Software and technology — 1,509,432 Less: accumulated amortization — (251,572 ) — 1,257,860 No impairment charge was recognized for the year ended December 31, 2021. For the year ended December 31, 2022, the software and technology would not support newly purchased educational contents, and the Company assessed no future cash flow would be generated from the software and technology. For the year ended December 31, 2022 and 2023, impairment of RMB1,425,226 and RMB 4,641 five Year ending December 31, RMB 2024 301,886 2025 301,886 2026 301,886 2027 301,886 2028 50,316 Total expected amortization expense 1,257,860 |
Prepayments
Prepayments | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments [Abstract] | |
PREPAYMENTS | NOTE 8 — PREPAYMENTS December 31, December 31, RMB RMB Short-term prepayments Advance to suppliers for services and inventories (1) 254,493,399 77,950,037 Long-term prepayments Prepayment for educational content 151,779,105 8,815,919 (1) Short-term prepayments represent advance to suppliers for purchasing services or inventories. In 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries entered into several IT equipment procurement agreements with third party suppliers in the total contract amount of RMB 344.45 million, pursuant to which the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries prepaid cash in an aggregated of RMB 254.5 million, or 74% of the total contract amount to these suppliers. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries purchased these IT equipment for purpose of 27 IT solution services projects. Subsequently, as of the date of this report, IT equipment associated with 23 projects with value of RMB 344.45 million were delivered and RMB 305 million prepayments were settled. (2) As of December 31, 2023, the Company reviewed the long-term prepayments for educational content. The Company expected that these educational contents would be outdated when they are delivered. The cash flows generated from subscription for these educational contents may not cover the purchase price. Accordingly, the Company charged impairment of RMB 155,307,333 against long-term prepayments. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 9 — LEASES The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries lease office space from third parties. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries does not have any finance lease during 2021, 2022 and 2023. Operating leases result in the recognition of ROU assets and lease liabilities on the balance sheet. ROU assets represent the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ right to use the leased asset for the lease term and lease liabilities represent the obligation to make lease payments. As of December 31, 2022, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries did not enter into office space lease arrangements with lease term over 12 months. Accordingly the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries adopted practical expedient and did not record right of use assets and lease liabilities as of December 31, 2022. In the year of 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries entered into an office spaces lease agreement with four unrelated third parties under non-cancelable operating leases, with terms ranging between 24 months and 36 months. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries consider those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries determine whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries use the rate implicit in the lease to discount lease payments to present value; however, most of the leases do not provide a readily determinable implicit rate. Therefore, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries discount lease payments based on an estimate of the incremental borrowing rate. For operating leases that include rent holidays and rent escalation clauses, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries recognize lease expense on a straight-line basis over the lease term from the date it takes possession of the leased property. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries record the straight-line lease expense and any contingent rent, if applicable, in general and administrative expenses on the consolidated statements of income and comprehensive income. The corporate office lease also requires the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries to pay property management expenses which are included in the general and administrative expenses on the condensed consolidated statements of income and comprehensive income. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. For short-term leases, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries record operating lease expense in its consolidated statements of income and comprehensive income on a straight-line basis over the lease term and record variable lease payments as incurred. The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets. December 31, December 31, RMB RMB Right of use assets — 7,604,933 Operating lease liabilities, current — 3,482,876 Operating lease liabilities, noncurrent — 4,035,598 Total operating lease liabilities — 7,518,474 For the years ended December 31, 2021, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries incurred operating lease expense of RMB 3,452,190, RMB 3,031,888 and RMB 1,940,818, respectively. The operating lease expenses were charged to general and administrative expenses. Cash flow information related to leases consists of the following: For the years ended 2022 2023 RMB RMB Operating cash payments for operating leases 3,031,888 1,801,311 Right-of-use assets obtained in exchange for operating lease liabilities — 9,349,932 Other information about the Company’s leases is as follows: For the years ended 2022 2023 RMB RMB Weighted average remaining lease term (years) — 2.37 Weighted average discount rate 4.20 % 3.45 % The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2023: Year ending December 31, RMB 2024 3,305,400 2025 2,862,103 2026 1,741,143 2027 - 2028 - Total lease payments 7,908,646 Less: Imputed interest (390,171 ) Present value of lease liabilities 7,518,474 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 10 — INCOME TAXES Composition of income tax The following table presents the composition of income tax expenses (benefits) for the years ended December 31, 2021, 2022 and 2023: For the years ended 2021 2022 2023 RMB RMB RMB Current income tax expense (5,897,409 ) — — Deferred income benefits (expenses) 1,030,042 10,980,054 (211,267 ) Total Income tax (expenses) benefits (4,867,367 ) 10,980,054 (211,267 ) Cayman Islands Under the current laws of the Cayman Islands, the Company and its intermediate holding companies in the Cayman Islands are not subject to tax on income or capital gain. Additionally, upon payments of dividends by the Company or its subsidiaries in the Cayman Islands to their shareholders, no withholding tax will be imposed. British Virgin Islands (“BVI”) Subsidiaries in the BVI are exempted from income tax on their foreign-derived income in the BVI. There are no withholding taxes in the BVI. Hong Kong Jianzhi Education (HK) and Sentu HK are incorporated in Hong Kong and are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate for the first HKD$2 million of assessable profits is 8.25% and assessable profits above HKD$2 million will continue to be subject to the rate of 16.5% for corporations in Hong Kong, effective from the year of assessment 2018/2019. Before that, the applicable tax rate was 16.5% for corporations in Hong Kong. Under Hong Kong tax laws, Jianzhi Education (HK) is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. China 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% with HNTE certificate effective for a period of three years 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, and small and micro-sized enterprises (“SMEs”) is entitled to a reduced EIT rate of 20%, 75% reduction of taxable income for the first RMB 3,000,000 taxable income, and no reduction for the remaining taxable income for the year ended December 31, 2023, reduced EIT rate of 20%, 87.5% reduction of taxable income for the first RMB 1,000,000 taxable income and 75% reduction of taxable income between RMB 1,000,000 and RMB 3,000,000, and no reduction for the remaining taxable income for the year ended December 31, 2022, 87.5% reduction of taxable income for the first RMB 1,000,000 taxable income and 50% reduction of taxable income between RMB 1,000,000 and RMB 3,000,000, and no reduction for the remaining taxable income for the year ended December 31, 2021. Jianzhi Beijing and Sentu Shuzhi, as SEs, were entitled to the preferential EIT treatment of two-year exemption and three-year half payment. Beijing Sentu applied the EIT rate of 15% during 2021, 2022 and 2023 as a HNTE. Sentu Lejiao , Guangzhou Lianhe and Shanghai Ang’you, are subject to the PRC EIT at a preferential tax as SMEs. The following table presents a reconciliation of the differences between the statutory income tax rate and the effective income tax rate for the years ended December 31, 2021, 2022 and 2023: For the years ended 2021 2022 2023 % % % PRC statutory rate 25.0 % 25.0 % 25.0 % Effect of differing tax rates in different jurisdictions 2.1 % (0.8 )% (5.5 )% Permanent difference (7.2 )% 1.5 % 0.6 % Favorable tax rate impact (12.7 )% 7.0 % 0.0 % Unrecognized loss 0.0 % 0.0 % 0.1 % Change in valuation allowance 0.3 % (27.4 )% (20.2 )% Income tax (expenses) benefits 7.5 % 5.3 % (0.0 )% The estimated tax savings as a result of the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ preferred tax rates for the years ended December 31, 2021, 2022 and 2023 amounted to RMB 7,291,787, RMB nil nil nil nil The tax effects of temporary differences that give rise to the deferred tax balances at December 31, 2022 and 2023 are as follows: December 31, December 31, RMB RMB Deferred tax assets: Bad debt provision 9,176,875 97,681,819 Operating lease liabilities — 1,879,619 Net operating losses carried forward 58,728,788 56,353,847 Valuation allowance (58,728,788 ) (144,689,121 ) Deferred tax assets, net 9,176,875 11,226,164 Deferred tax liabilities: Right-of-use assets — 2,274,256 Realization of the net deferred tax assets is dependent on factors including future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences and tax loss carry forwards. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries evaluates the potential realization of deferred tax assets on an entity-by-entity basis. As of December 31, 2022 and 2023, valuation allowances were mainly provided against deferred tax assets caused by bad debt provisions and net operating losses carried forward in entities where it was determined it was more likely than not that the benefits of the deferred tax assets will not be realized due to their continuous losses. As of December 31, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had tax losses of RMB 236,254,725 and RMB 395,307,903 deriving from certain entities in the PRC and Hong Kong. The tax losses in the PRC can be carried forward for five years to offset future taxable income and the period was extended to ten years for entities qualified as HNTE. The tax losses in Hong Kong can be carried forward without an expiration date. |
Related Party Balances and Tran
Related Party Balances and Transaction | 12 Months Ended |
Dec. 31, 2023 | |
Related party balances and transaction [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTION | NOTE 11 — RELATED PARTY BALANCES AND TRANSACTION Name Relationship December 31, December 31, RMB RMB Due from related parties Peixuan Wang (a) Chairwomen of the Company 1,051,869 1,010,584 Beijing Dongxu Tongda Information Technology Co., Ltd. Controlled by Jiniao Li — 882,075 Others — 279,905 Total amount due from related parties 1,051,869 2,172,565 Due to related parties Rongde Holdings Co., Ltd. (“Rongde”) (c) Shareholder of the Company 28,009,457 21,867,376 Xinyu Tongkezhiyong Enterprise Management Center (Xinyu Tongkezhiyong) (b) Controlled by Qizhang Li 24,700,000 24,700,000 Beijing Sentu Cloud Creative Education Technology Co., Ltd. Controlled by Huidong Niu 700,000 Others — 238,248 Total amount due to related parties 52,711,457 47,505,624 (a) During the year ended December 31, 2021, our chairwomen of board of directors, Peixuan Wang, paid off professional fees on behalf of the Company in the amount of RMB 2,485,486 and the Company repaid the payment in the same year. In addition, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries advanced RMB 2,473,750 to Peixuan Wang for payments of professional fees. During the year ended December 31, 2022, Peixuan Wang returned RMB 1,421,881 to the Company. As of December 31, 2022 and 2023, the Company had a balance of due from a related party of RMB 1,051,869 and RMB 1,010,584. (b) As of December 31, 2021 and December 31, 2022, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had balance due to Xinyu Tongkezhiyong Enterprise Management Center in the amount of RMB 24,700,000 and RMB 24,700,000, respectively, representing the outstanding payables to Xinyutong Kezhiyong Enterprise Management Center for the purchase of 51% equity interest of Xingzhiqiao on September 30, 2017 and 49% equity interest of Xingzhiqiao on August 31, 2018. (c) On May 18, 2021 and July 26, 2021, the Company’s subsidiary and Rongde entered into two loan agreements, pursuant to which the Company’s subsidiary borrowed an aggregation of RMB 47,168,356 from Rongde. The borrowings are interest free. The proceeds from borrowings are for the working capital needs in operations. During the year ended December 31, 2022, the Company and its wholly-owned subsidiaries repaid RMB 19,963,743 to Rongde, with remaining balance of RMB 28,009,457 extended to April 7, 2023. During the year ended December 31, 2023, the Company and its wholly-owned subsidiaries repaid RMB 25,300,980 to Rongde, with remaining balance of RMB 21,867,376 extended to April 7, 2024. On August 24, 2022, the Company’s subsidiary and Rongde entered into an additional loan agreement, pursuant to which the Company’s subsidiary borrowed RMB 13.7 million (HKD 16 million) from Rongde. The borrowing is interest free and is due in August 2023, and the loan has been extended due in August 2024.The proceeds from borrowings are for the working capital needs in operations. The Company calculated the present value of the loan to be RMB 13,920,083 and RMB 14,862,174 by using its incremental rate of 3.45%, respectively. The difference between the present value and the cash received was RMB 484,370 and RMB 517,164, respectively, which was considered as a contribution from the principal shareholder and recorded as additional paid-in capital since the transaction was occurred between entities under common control. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 — COMMITMENTS AND CONTINGENCIES The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries may be involved in certain legal proceedings, claims and other disputes arising from the commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries determine whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the outcomes of these legal proceedings cannot be predicted, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
EQUITY | NOTE 13 — EQUITY Ordinary shares The Company was established under the laws of Cayman Islands on March 12, 2018. The authorized number of Ordinary Shares was 50,000 with par value of $1 per share. On March 12, 2018, the Company issued 10,000 shares to four shareholders in exchange for US$10,000. On July 8, 2021, the Board of Directors adopted a consent resolution to effectuate a 10,000:1 stock reverse split, to sub-divide the original 10,000 issued ordinary shares of a nominal or par value of US$1 in the capital of the Company into 100,000,000 ordinary shares of a nominal or par value of US$0.0001. As a result, the Company had 500,000,000 authorized common shares, $0.0001 par value per share, of which 100,000,000 were issued and outstanding as of December 31, 2020 and 2021. The Company believes it is appropriate to reflect stock reverse split on a retroactive basis similar to stock split or dividend pursuant to ASC 260. The Company has retroactively restated all shares and per share data for all the periods presented. On August 25, 2022, the Company closed of its initial public offering (“IPO”) of 5,000,000 American Depositary Shares (the “ADS”) at a public offering price. Each ADS represents two ordinary shares of the Company. On the same date, the Company converted the redeemable ordinary shares into 11,110,000 ordinary shares to Dongxing Securities. As of December 31, 2022 and 2023, the Company had issued and outstanding ordinary shares of 121,110,000 and 121,110,000 shares, respectively. Profit appropriation and restricted net assets Relevant PRC laws and regulations permit the PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, the Company’s PRC subsidiaries, VIE and VIE’s subsidiaries can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to the statutory reserves. The statutory reserves require that annual appropriations of 10% of net after-tax income should be set aside prior to payment of any dividends. As a result of these and other restrictions under the PRC laws and regulations, the PRC subsidiaries, VIE and VIE’s subsidiaries are restricted in their abilities to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances, which restricted portion amounted to approximately RMB 130 million as of December 31, 2023. Even though the Company currently does not require any such dividends, loans or advances from the PRC subsidiaries, VIE and VIE’s subsidiaries for working capital and other funding purposes, the Company may in the future require additional cash resources from its PRC subsidiaries, VIE and VIE’s subsidiaries due to changes in business conditions, to fund future acquisitions and developments, or merely declare and pay dividends to or distributions to the Company’s shareholders. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 14 — SEGMENT INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ CODM are Ms. Wang, the Chairwoman of the Board of Directors and Mr. Hu, CEO. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ organizational structure is based on a number of factors that the CODM uses to evaluate, view and run its business operations which include, but not limited to, customer base, homogeneity of service and technology. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ operating segments are based on such organizational structure and information reviewed by the CODM to evaluate the operating segment results. Based on management’s assessment, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries has determined that it has two operating segments: (i) educational content services and other services. (ii) IT related solution services. The following table presents revenue by segments for the years ended December 31, 2021, 2022 and 2023, respectively: For the Year Ended December 31, 2021 IT related Educational Total RMB RMB RMB Revenue 108,175,596 365,071,687 473,247,283 Cost of revenue and related tax (57,714,804 ) (311,337,330 ) (369,052,134 ) Gross profit 50,460,792 53,734,357 104,195,149 Depreciation and amortization 105,523 3,914,361 4,019,884 Net income 27,851,387 25,079,237 52,930,624 For the Year Ended December 31, 2022 IT related Educational Total RMB RMB RMB Revenue 300,808,236 204,916,075 505,724,311 Cost of revenue and related tax (278,136,091 ) (233,129,243 ) (511,265,334 ) Gross profit 22,672,145 (28,213,168 ) (5,541,023 ) Depreciation and amortization 51,190 3,905,647 3,956,837 Net loss (1,616,559 ) (194,966,487 ) (196,583,046 ) For the Year Ended December 31, 2023 IT related Educational Total RMB RMB RMB Revenue 368,798,818 71,373,814 440,536,632 Cost of revenue and related tax (323,533,990 ) (100,811,626 ) (424,345,616 ) Gross profit 45,264,828 (29,073,812 ) 16,191,016 Depreciation and amortization 251,572 — 251,572 Net loss (304,403,355 ) (78,409,908 ) (382,813,263 ) December 31, December 31, RMB RMB Identifiable long-lived assets, net: IT related solution services — 1,257,860 Educational content service and other services 214,441,814 — Total 214,441,814 — Substantially the majority of the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ revenues are derived from China based on the geographical locations where services are provided to customers. In addition, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ long-lived assets are substantially all located in and derived from China, and the amount of long-lived assets attributable to any individual other country is not material. Therefore, no geographical segments are presented. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 15 — SUBSEQUENT EVENT On February 20, 2024, the Company changed the ratio of its American Depositary Shares (“ADSs”) from current one (1) ADS representing two (2) ordinary shares to one (1) ADS representing six (6) ordinary shares(the “ADS Ratio Change”). For Jianzhi’s ADS holders, the ADS Ratio Change had the same effect as a one-for-three reverse ADS split. Each ADS holder of record at the close of business on February 20, 2024 was to surrender and exchange every three (3) existing ADSs then held for one (1) new ADS. No fractional new ADSs were issued in connection with the ADS Ratio Change. Instead, fractional entitlements to new ADSs were aggregated and sold by the depositary bank, and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes, and expenses, where applicable) were distributed to the applicable ADS holders by the depositary bank. The ADS Ratio Change had no impact on Jianzhi’s underlying ordinary shares, and no ordinary shares were issued or canceled in connection with the ADS Ratio Change. On June 25, 2024, the Company, through Beijing Sentu entered into an agreement with Xinyu Tongkezhiyong. Pursuant to the agreement, Xinyu Tongkezhiyong agreed to waive outstanding RMB 24.7 million due to Xinyu Tongkezhiyong. On June 26, 2024, the Company, through Jianzhi HK and Sentu HK entered into an agreement with Rongde, Pursuant to the agreement, Rongde agreed to waive the outstanding balance of RMB 14.8 million due to Rongde. The Company has performed an evaluation of subsequent events through August 23, 2024, which was the date of the consolidated financial statements were issued, and determined that no other events that would have required adjustment or disclosure in the consolidated financial statements. |
Financial Information of the Pa
Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 16 — FINANCIAL INFORMATION OF THE PARENT COMPANY Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) of which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s PRC subsidiary exceed 25% of the consolidated net assets of the Company. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted. The Company’s investment in subsidiary is stated at cost plus equity in undistributed earnings of subsidiaries. Investment in subsidiaries, VIE and VIE’s subsidiaries, on the Condensed Balance Sheets, is comprised of the Parent Company’s net investment in its subsidiaries, VIE and VIE’s subsidiaries under the equity method of accounting. Balance Sheets December 31, December 31, December 31, RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 34,314,420 324,303 45,677 Due from a related party 1,044,993 1,003,476 141,337 Total current assets 35,359,413 1,327,779 187,014 Non-current assets: Investment in subsidiaries, VIE and VIE’s subsidiaries 220,666,567 — — Amounts due from subsidiaries, VIE and VIE’s subsidiaries 114,574,974 85,581,297 12,053,874 Total non-current assets 315,241,541 85,581,297 12,053,874 Total assets 350,600,954 86,909,076 12,240,888 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Investment deficits in subsidiaries, VIE and VIE’s subsidiaries — 109,361,012 15,403,176 Accrued expenses and other liabilities 487,302 1,053,376 148,365 Total current liabilities 487,302 110,414,388 15,551,541 Total liabilities 487,302 110,414,388 15,551,541 December 31, December 31, December 31, RMB RMB US$ Shareholders’ equity (deficit): Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized, 121,110,000 and 121,110,000 issued and outstanding as of December 31, 2022 and 2023) 77,746 77,747 12,111 Additional paid-in capital 242,093,942 238,567,906 33,600,426 Statutory reserves 23,599,304 23,557,710 3,318,034 Retained earnings (accumulated deficit) 81,822,030 (291,805,140 ) (41,099,902 ) Accumulated other comprehensive income 2,520,630 6,096,465 858,678 Total shareholders’ equity (deficit) 350,113,652 (23,505,312 ) (3,310,653 ) Total liabilities and shareholders’ equity (deficit) 350,600,954 86,909,076 12,240,888 Statements of Comprehensive Operations For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Operating costs and expenses: Selling, general and administrative (3,515,595 ) 5,677,577 (8,549,401 ) (1,204,158 ) Impairment of long-term prepayments — — (54,923,757 ) (7,735,849 ) Share of income (loss) of subsidiaries, VIEs and VIEs’ subsidiaries 51,773,864 (204,839,384 ) (310,027,579 ) (43,666,470 ) Net income (loss) 48,258,269 (199,161,807 ) (373,500,737 ) (52,606,461 ) Net income (loss) attributable to ordinary shareholders 48,258,269 (199,161,807 ) (373,500,737 ) (52,606,461 ) Other comprehensive income Foreign currency translation adjustments 211,494 2,120,397 3,575,835 503,646 Total other comprehensive income 211,494 2,120,397 3,575,835 503,646 Comprehensive income (loss) 48,469,763 (197,041,410 ) (369,924,902 ) (52,102,815 ) Statements of Cash Flows For the Years Ended December 31, 2021 2022 2022 2022 RMB RMB RMB US$ Net cash used in operating activities (40,186 ) (3,460,086 ) (8,682,450 ) (1,222,898 ) Net cash used in investing activities — (109,865,693 ) (21,898,393 ) (3,084,324 ) Net cash provided by (used in) financing activities 6,353,868 140,000,402 (7,797,900 ) (1,098,311 ) Effect of exchange rate changes on cash and cash equivalents (62,295 ) 1,290,142 4,388,627 618,125 Net increase (decrease) in cash and cash equivalents 6,251,387 27,964,765 (33,990,117 ) (4,787,408 ) Cash and cash equivalents at the beginning of the year 98,268 6,349,655 34,314,420 4,388,085 Cash and cash equivalents at the end of the year 6,349,655 34,314,420 324,303 45,677 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of presentation | Principles of presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries in which WFOE is the primary beneficiary. The results of the subsidiaries are consolidated from the date on which the Company obtained control and continues to be consolidated until the date that such control ceases. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. However, if the Company demonstrates its ability to control the VIE through power to govern the activities which most significantly impact VIE’s economic performance and is obligated to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, then the entity is consolidated. All intercompany balances and transactions between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries continually evaluates its estimates, including, but are not limited to, those related to the allowance for doubtful accounts, recoverability and useful lives of copyrights and produced content, recoverability and useful lives of certain finite-lived intangible assets, recoverability and useful lives of long-lived assets, recoverability of indefinite-lived intangible assets, income taxes, and the valuation of equity transactions. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries bases its estimates on historical experience and on various other assumptions that it believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. |
Functional currency and foreign currency translation | Functional currency and foreign currency translation The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries which incorporated in the Cayman Islands and Hong Kong is Hong Kong Dollar (“HK$”). The functional currency of the Company’s overseas subsidiaries, VIE and VIE’s subsidiaries which incorporated in PRC is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of the PRC have been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the periods. Translation adjustments are reported as foreign currency translation adjustments, and are shown as a component of other comprehensive income in the consolidated statements of operations and comprehensive income (loss). Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. |
Convenience Translation | Convenience Translation The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive loss, change in shareholders’ deficit and cash flows from Renminbi (“RMB”) into US dollars as of and for the years ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate. |
Fair value of financial instruments | Fair value of financial instruments The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries adopted the guidance of ASC 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: ● Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. ● Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. ● Level 3 — Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets of cash and cash equivalents, accounts receivable, other receivables, due from related parties, accounts payable, salary and welfare payable, income tax payable, VAT and other taxes payable, and other payables, approximate their fair market value based on the short-term maturity of these instruments. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of December 31, 2022 and 2023. |
Noncontrolling interests | Noncontrolling interests For the Company’s subsidiaries majority-owned by the Company’s VIE and VIE’s subsidiaries, noncontrolling interests are recognized to reflect the portion of the equity which is not attributable, directly or indirectly, to the Company as the controlling shareholder. Noncontrolling interests acquired through a business combination are recognized at fair value at the acquisition date, which is estimated with reference to the purchase price per share as of the acquisition date. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents primarily consist of cash, money market funds, investments in interest bearing demand deposit accounts, time deposits with terms of and less than three months. |
Short-term investments | Short-term investments All highly liquid investments with maturities of greater than three months, but less than twelve months, are classified as short-term investments. Short-term investments primarily include wealth management financial products with variable interest issued by commercial banks with the intention to be sold within twelve months. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries account for short-term investments in accordance with ASC 320 and records at fair value. Interest income are reflected on the consolidated statements of operations and comprehensive income (loss). |
Accounts receivable, net of allowance | Accounts receivable, net of allowance Accounts receivable are amounts due from customers for goods delivered and services performed in the ordinary course of business and are recognized and carried at the original amount less an allowance for any potential uncollectible amounts. Accounts receivable balances are written off against allowances for doubtful accounts when they are determined to be uncollectible. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries generally do not require collateral from its customers. On January 1, 2023, the Company, Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Company, changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including contract assets. The adoption of the guidance had no impact on the allowance for credit losses for accounts receivable. Prior to the adoption of ASU 2016-13, accounts receivable are presented net of allowance for doubtful accounts. After the adoption of ASU 2016-13, the Company, maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the condensed consolidated statements of operations and comprehensive income (loss). |
Inventories | Inventories Inventories comprise IT equipment, yet to deliver to customer at the end of the reporting period. Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in-first-out basis. Adjustments are recorded to write down the cost of inventories 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. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Write downs, if any, are recorded in cost of revenues in the consolidated statements of operations and comprehensive income (loss). As of December 31, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had inventory in the amount of RMB399,439 and $ nil nil nil |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of operations and comprehensive income (loss). The estimated useful lives are as follows: Leasehold improvement Shorter of lease terms and estimated useful lives Fixture and furniture 3 – 10 years Office equipment 3 – 5 years Motor vehicles 4 years As of December 31, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had property and equipment, net in the amount of RMB153,880 and RMB 213,369, respectively. For the years ended December 31, 2021, 2022 and 2023, depreciation expenses were in the amount of RMB 78,000, RMB 60,837, and RMB 40,984, respectively. |
Educational contents, net | Educational contents, net Educational contents are the copyrights owned by WFOE, VIE and VIE’s subsidiary. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries engage external professional makers to produce educational contents and they also purchase educational contents along with licensed copyrights from external parties. Educational contents are initially recognized at cost. Educational content are amortized by using a straight-line method based on historical and estimated usage patterns. These estimates are periodically reviewed and adjusted, if appropriate. Educational contents that have determinable lives continue to be amortized over their estimated useful lives as follows: Produced educational content 5 years Licensed copyrights Shorter of the licensed period or projected useful life of the content The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries review unamortized educational content costs for impairment whenever events or circumstances indicate that the carrying value may not be fully recoverable or that the useful life is shorter than it was originally estimated. |
Leases | Leases The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries adopted ASU No. 2016-02, Leases (Topic 842), and recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries elected to apply practical expedients permitted under the transition method that allow them to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries used modified retrospective method and did not adjust the prior comparative periods. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries determine if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries consider only payments that are fixed and determinable at the time of lease commencement. At the commencement date, the lease liability is recognized at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed for impairment annually. No impairment for right-of-use lease assets as of December 31, 2022 and 2023. |
Goodwill | Goodwill Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from the acquired entity as a result of the Company’s acquisitions of interests in its consolidated VIE’s subsidiaries. Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level on an annual basis, and between annual tests when an event or circumstances change occurs that indicate the asset might be impaired. Under ASC 350-20-35, the Company and the VIE, the acquirer, have the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. If the Company and the VIE believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. In the qualitative assessment, the Company and the VIE consider primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the quantitative analysis indicates the carrying value of a reporting unit exceeds its fair value, the Company and the VIE measure any goodwill impairment losses as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. For the year ended December 31, 2022, Guangzhou Xingzhiqiao terminated business partnership with a major customer, therefore the Company assessed that it is more than likely that the fair value of the reporting unit would exceed its carrying amount. The Company provided full impairment of RMB 7,712,011 against goodwill for the year ended December 31, 2022. |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill Long-lived assets are evaluated 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 value of an asset may not be fully recoverable or that the useful life is shorter than it was originally estimated. When these events occur, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries evaluate the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, an impairment loss is recognized based on the excess of the carrying value of the assets over the fair value of the assets. For the years ended December 31, 2021, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries did not accrue impairment charge against educational contents. For the year ended December 31, 2022 and 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries accrued impairment charge of RMB 106,182,780 and RMB 197,466,973 against educational contents because certain contents were obsolete and the Company assessed it is not likely that end customers would subscribe for related educational contents. For the years ended December 31, 2021, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries did not accrue impairment charge against intangible assets, including the customer relationship and software and technology. The customer relationship arose from acquisition of Guangzhou Xingzhiqiao by the Beijing Sentu in 2018. For the year ended December 31, 2022, Guangzhou Xingzhiqiao terminated business partnership with a major customer, therefore the Company assessed that it is more than likely that the fair value of the reporting unit would exceed its carrying amount. The Company provided full impairment of RMB 10,714,000 against customer relationship for the year of 2022. For the year ended December 31, 2022 and 2023, the Company also provided impairment against software and technology of RMB1,425,226 and RMB4,641,741, respectively. Our current software and technology would not support newly purchased educational contents, and the Company assessed no future cash flow would be generated from the software and technology. |
Revenue recognition | Revenue recognition The core principle of ASC 606, Revenue from Contracts with Customers requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. This new guidance provides a five-step analysis in determining when and how revenue is recognized. Under the new guidance, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the new guidance requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries identify its contracts with customers and all performance obligations within those contracts. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries then determine the transaction price and allocates the transaction price to the performance obligations within the contracts with customers, recognizing revenue when, or as, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries satisfy its performance obligations. The adoption of ASC 606 did not significantly change (1) the timing and pattern of revenue recognition for all of the revenue streams, and (2) the presentation of revenue as gross versus net. Therefore, the adoption of ASC 606 did not have a significant impact on Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ financial position, results of operations, equity or cash flows as of the adoption date. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ revenue recognition policies effective upon the adoption of ASC 606 are as follows: |
Revenue from educational content service and other services | Revenue from educational content service and other services The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries embed the digital educational content into various web-based or mobile-based online learning platforms to provide comprehensive educational resources or other services to education institutions and individual customers through B2B2C model or B2C model. Specifically, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries primarily provide subscription service, licensing service and other services. (i) Subscription revenue VIE and VIE’s subsidiaries generate subscription revenue primarily through (a) selling subscriptions to online learning platforms, to higher education institutions and other institutional customers under a B2B2C model mainly through the platform of Sentu Academy; (b) offering subscriptions concerning educational content in mobile video packages directly to end users under a B2C model through the platforms such as Fish Learning or Light Class etc. VIE and VIE’s subsidiaries’ contracts have a single performance obligation for an integrated service and the transaction price is stated in the contracts, usually as a price per end-customers or educational content. Quantity of end-customers enrolled or courses provided is determined before rendering service. The subscription period for a majority of the educational content services is less than 12 months. Customers can access to the educational content anytime during the subscription period. The performance obligation is providing educational content database access and is satisfied over the subscription period. The revenue was recognized based on a straight-line basis over the subscription period. Subscription services cannot be cancelled and is not refundable after enrollment. All estimates are based on the historical experience, complete satisfaction of the performance obligation, and the management’s best judgment at the time the estimates are made. Returns and allowances are not a significant aspect of the revenue recognition process as historically they have been immaterial. (ii) Licensing revenue WFOE and its subsidiaries, VIE and VIE’s subsidiaries generate licensing revenue primarily through licensing select content copyrights to institutional customers based on their needs and preferences under a B2B2C model. Institutional licenses primarily include educational institutions and non-educational institutions, such as libraries, contractors of educational content and video platforms. Licensing, different from subscriptions to learning platforms, allows customers to store the licensed educational content to their system and allow their students/users to access such educational content directly through their own systems. The institutional customers pay for access by their respective students, faculty members or library patrons, as the case may be individuals and generally pay a one-time licensing fee at the fixed price stated in the contract to receive such products. The VIE and VIE’s subsidiaries also license copyrights of the special limited content in mobile video packages directly to end mobile users under a B2C model through cooperating with a leading telecommunications provider in China. The end mobile users redeem their reward points at the telecommunications provider for the video packages and the telecommunications provider compensates the VIE and VIE’s subsidiaries at the fixed price for each video packages stated in the contract. Licensing revenue is recognized at the point in time when control of the select content copyrights is transferred to customer, usually at the time when their customers received the select content. WFOE and its subsidiaries, VIE and VIE’s subsidiaries typically satisfy its performance obligations in contracts with customers upon control of the select content copyrights is transferred to customer, usually at the time when their customers received the select content, and the revenue is recognized at a point in time when customer is able to direct use of and obtain substantially all of the benefits from the learning platforms at the time the services are delivered. (iii) Other services revenue Other services mainly include mobile media services, including mobile media advertising services etc. WFOE and its subsidiaries, VIE and VIE’s subsidiaries provide advertising services to customers on its mobile application in the form of pop-up ads and banners, and generates revenue from advertisements based on the posting period or based on the number of times viewers click on these advertisements etc. The promised services in each service contract are combined and accounted as a single performance obligation, as the promised services in a contract are not distinct and are considered as a significant integrated service. The VIE and VIE’s subsidiaries determine pricing for each contract separately. These services are recognized over time based on a straight-line basis over the period of services rendered as customers simultaneously receive and consume the benefits of these services throughout the service period. Returns and allowances are not a significant aspect of the revenue recognition process as historically they have been immaterial. For some contracts, the mobile media advertising revenue is generated based on the number of times viewers click on these advertisements or download the sponsor’s application to their phones or the number of days such advertisements are placed in the learning platform. Under much pricing model, the revenues are recognized at the point of time as the publishers deliver advertising services at the point in time. Net revenues presented on the consolidated statements of operations and comprehensive income (loss) are net of sales discount and sales tax. Revenue from IT related solution services WFOE and its subsidiaries, VIE and VIE’s subsidiaries derived revenue from IT related solution services through providing (i) design and development of customized IT system service; (ii) procurement and assembling of equipment needed to operate the customer’s systems; and (iii) technological support and maintenance service. The Company recognizes revenues on a gross basis as the Company is determined to be the primary obligor in fulfilling the contracts of IT related solution services initiated by the customer. WFOE and its subsidiaries, VIE and VIE’s subsidiaries contract with higher education institutions and other institutional customers to provide design and development of customized IT system service, normally within a year. The terms of pricing and payment stipulated in the contract are fixed. One performance obligation is identified in the contracts with customers as the design and development of customized IT system service are a series of service that are inputs used to create the customized IT system, which are not distinct in the context of the contract. Revenue is recognized at the point when the system or platform are completed and accepted by the customers. Upon delivery of services, project completion inspection and customer acceptance notice are required as proof of the completion of performance obligations, which is a confirmation of customer to its ability to direct the use of and obtain substantially all of the benefits from, the design and development service. In instances where substantive completion inspection and customer acceptance provisions are specified in contracts, revenues are deferred until all inspection and acceptance criteria have been met. WFOE and its subsidiaries, VIE and VIE’s subsidiaries generate revenue from procurement and assembling of equipment needed to operate the customer’s systems. The terms of pricing and payment stipulated in the contract are fixed. One performance obligation is identified in the contracts with customers as the equipment and related assembling services are both inputs used to create the customized equipment, which are not distinct in the context of the contract. Revenue is recognized at the point when the customized equipment are completed and accepted by the customers, normally within a year. Project completion inspection and customer acceptance notice are required as proof of the completion of performance obligations, which is a conformation of customer to its ability to direct the use of and obtain substantially all of the benefits from the systems. In instances where substantive completion inspection and customer acceptance provisions are specified in contracts, revenues are deferred until all inspection and acceptance criteria have been met. From time to time, WFOE and its subsidiaries enter into arrangement to provide technological support and maintenance service of online platforms to its customers at a price stated in contract. WFOE and its subsidiaries’ efforts are expended evenly throughout the service period. The revenues for the technological support and maintenance service are recognized over the support and maintenance services period, usually one year or less. The contracts have a single performance obligation and are primarily on a fixed-price basis. No significant returns, refund and other similar obligations during each reporting period. The following table summarizes disaggregated revenue from contracts with customers by service type: For the years ended 2021 2022 2023 RMB RMB RMB Revenue from educational content service and other services – Subscription revenue 148,041,259 59,217,081 16,385,013 – Licensing revenue 204,369,087 141,957,541 16,683,141 – Other services revenue 12,661,341 3,741,453 38,669,659 Subtotal 365,071,687 204,916,075 71,737,814 Revenue from IT related solution services 108,175,596 300,808,236 368,798,818 Total 473,247,283 505,724,311 440,536,632 The core principle underlying the revenue recognition ASU is that the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries will recognize revenue to represent the transfer of services to customers in an amount that reflects the consideration to which the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries expect to be entitled to in such exchange. This will require the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when services are provided to a customer. The following table summarizes disaggregated revenue from contracts with customers by timing of revenue recognition: For the years ended 2021 2022 2023 RMB RMB RMB Services transferred at a point in time – Revenue from educational content service 204,369,087 141,957,541 16,683,141 – Revenue from IT related solution services 108,070,096 299,803,227 368,742,494 Services transferred over time – Revenue from educational content service 160,702,600 62,958,534 55,054,673 – Revenue from IT related solution services 105,500 1,005,009 56,324 Total 473,247,283 505,724,311 440,536,632 Contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. In accordance with ASC340-40-25-1, an entity shall recognize as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs. Entities sometimes incur costs to obtain a contract that otherwise would not have been incurred. Entities also may incur costs to fulfil a contract before a good or service is provided to a customer. The revenue standard provides guidance on costs to obtain and fulfil a contract that should be recognized as assets. Costs that are recognized as assets are amortized over the period that the related goods or services transfer to the customer, and are periodically reviewed for impairment. Only incremental costs should be recognized as assets. The revenue is recognized when control of the promised services is rendered over the service period and the payment from customers is not contingent on a future event, and the right to consideration in exchange for services that the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries have transferred to a customer is only conditioned on the passage of time. Therefore, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries do not have any contract assets. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries also do not have significant capitalized commissions or other costs as of December 31, 2022 and 2023. Contract liabilities represents cash payment received from customers in advance of the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries satisfying performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time and point in time. Contract liabilities are derecognized when or as revenue is recognized. Due to the generally short-term duration of the relevant contracts, the majority of the performance obligations are satisfied within one year. The amount of revenue recognized that was included in the contract liabilities at the beginning of the year were RMB23,531,132 and RMB 290,028,010 for the years ended December 31, 2022 and 2023, respectively. The details of contract liabilities are as follows: December 31, December 31, December 31, RMB RMB RMB Advance from educational content service and other services – Subscription service 8,411,203 12,020,547 12,855,928 – Licensing service 15,119,929 172,690 - 23,531,132 12,193,237 12,855,928 Advance from IT related solution services 303,768,095 277,834,773 73,876,049 Total 327,299,227 290,028,010 86,731,977 |
Cost of revenues | Cost of revenues Costs of revenues consist primarily of inventory cost, staff costs, video content costs, depreciation expenses and other direct costs of providing these services or goods. These costs are charged to the consolidated statements of operations and comprehensive income (loss) as incurred. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined to include all changes in equity of the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Accumulated other comprehensive income, as presented on the consolidated balance sheets, consists of accumulated foreign currency translation adjustments. |
Taxation | Taxation Income taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the assets and liabilities method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statement of income and comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not that some portion of, or all of the deferred tax assets will not be realized. Value added tax Revenue represents the invoiced value of goods and services, net of VAT. The VAT is based on gross sales price and VAT rates range up to 16%, depending on the type of products sold or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company’s subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing. Uncertain tax positions The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries apply the provisions of ASC topic 740 (“ASC 740”), Accounting for Income Taxes, to account for uncertainty in income taxes. ASC 740 prescribes a recognition threshold a tax position is required to meet before being recognized in the financial statements. The benefit of a tax position is recognized if a tax return position or future tax position is “more likely than not” to be sustained under examination based solely on the technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured, using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The estimated liability for unrecognized tax benefits are 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 the expiration of the statute of limitations. Additionally, in future periods, changes in facts and circumstances, and new information may require the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries to adjust the recognition and measurement of estimates with regards to changes in individual tax position. Changes in recognition and measurement of estimates are recognized in the period which the change occurs. |
Research and development expenses | Research and development expenses Research and development expenses consist primarily of personnel-related expenses incurred for the development of, enhancement to, and maintenance of the websites and internal use software as well as costs associated with new video contents development. Depreciation expenses and other operating costs that are directly related to research and development are also included in research and development expenses. The research and development expenses are recognized when incurred. |
Government grants | Government grants Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government grants of non-operating nature with no further conditions to be met are recorded as government grants when received. The government grants with certain operating conditions are recorded as “other liabilities/other non-current liabilities” when received and will be recorded as other income when the conditions are met. |
Earnings (loss) per share | Earnings (loss) per share Earnings (loss) per share (“EPS”) is computed in accordance with ASC topic 260 (“ASC 260”), Earnings per Share Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders, including the redeemable shares, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of December 31, 2022 and 2023, there were no dilutive shares. |
Commitments and contingencies | Commitments and contingencies In the normal course of business, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries are subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the consolidated financial statements. If the assessment indicates that a potential loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. |
Risks and uncertainties | Risks and uncertainties Liquidity The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, the financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. For the year ended December 31, 2023, the company charged impairment of RMB 31,399,370 and RMB 166,067,603 against purchased educational contents and licensed copyrights, which was mainly due to those contents already out of date. As a result, the Company incurred a net loss of RMB 382,813,263 for the year ended December 31, 2023. As of December 31, 2023, the company had an accumulated deficit of RMB 291,805,140. However, the Company had cash inflows of RMB 15,159,956 from operating activities for the year ended December 31, 2023 and the minimum future commitments under non-cancelable operating lease agreements and capital lease agreements of nil was expected to be paid within 1 years. In addition, among the current liabilities, RMB 47,505,624 was due to related parties, which agreed to extend the payments from the Company. As the Company expected a stable business in year 2024 as compared with year 2023, the Company did not expect a cash outflows from operating activities in the year 2024. The principal shareholder of the Company has made pledges to provide financial support to the Company whenever necessary. Based on the above analysis, management believes the company can continue as a going concern, the financial statements do not include any adjustments that might result from the outcome of this uncertainty. Credit risks Financial instruments that potentially subject the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries to significant concentration of credit risk primarily cash and cash equivalents and restricted cash and accounts receivables. The carrying amounts of cash and cash equivalents represent the maximum exposure to credit risk. As of December 31, 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries have RMB 18,175,959 in cash and cash equivalents, which is mainly held in cash and demand deposits with several financial institutions in the PRC and Hong Kong. In the event of bankruptcy of one of these financial institutions, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries may not be able to claim its cash and demand deposits back in full. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries continue to monitor the financial strength of the financial institutions. Accounts receivable are typically unsecured and denominated in RMB, derived from revenue earned from customers in the PRC, which are exposed to credit risk. The risk is mitigated by credit evaluations the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries perform on its customers and its ongoing monitoring process of outstanding balances. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries maintain an allowance for doubtful accounts and actual losses have generally been within management’s expectations. Refer to major customers and supplying channels below for detail. Currency convertibility risk Substantially all of the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ operating activities are settled in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with supporting documents. Major customers and supplying channels The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ suppliers primarily consist of software suppliers, IT equipment providers and advertising companies. For the year ended December 31, 2021, four suppliers accounted for 39%, 12%, 12% and 12% of the Company’s total purchases, respectively. For the year ended December 31, 2022, four suppliers accounted for 60%, 15%, 13% and 12% of the Company’s total purchases, respectively. For the year ended December 31, 2023, four suppliers accounted for 38%, 13%, 9% and 6% of the Company’s total purchases, respectively. As of December 31, 2022, one supplier accounted for 82% of the Company’s total accounts payable balance. As of December 31, 2023, three suppliers accounted for 42%, 28% and 15% of the Company’s total accounts payable balance. As of December 31, 2022, four supplier accounted for 19%, 11%, 11%, and 10% of the Company’s short-term prepayments. As of December 31, 2023, two suppliers accounted for 75% and 24% of the Company’s short-term prepayments. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries’ customers primarily include higher education institutions, contractors of educational content and IT related solutions, telecommunications providers, providers of mobile Internet audio and video services, platform services providers and libraries. For the year ended December 31, 2021, three customers accounted for 33%, 14% and 13% of the Company’s total revenue, respectively. For the year ended December 31, 2022, two customers accounted for 37% and 12% of the Company’s total revenues respectively. For the year ended December 31, 2023, four customers accounted for 21%, 16%, 12% and 11% of the Company’s total revenue, respectively. As of December 31, 2022, no customers accounted for more than 10% of the Company’s accounts receivable balance. As of December 31, 2023, one customer accounted for 65% of the Company’s gross accounts receivable balance. As of December 31, 2022, five customers accounted for 32%, 13%, 12%, 12% and 11% of the Company’s contract liabilities, respectively. As of December 31, 2023, two customers accounted for 68% and 15% of the Company’s contract liabilities, respectively. |
Statutory reserves | Statutory reserves In accordance with China’s Company Laws, the Company’s VIEs in PRC must make appropriations from their after-tax profit, as determined under the accounting principles generally acceptable in the People’s Republic of China (“PRC GAAP”), to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company. Pursuant to the laws applicable to China’s FIEs, the Company’s subsidiaries that are FIEs in China have to make appropriations from their after-tax profit (as determined under PRC GAAP) to reserve funds including (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the respective company. Appropriations to the other two reserve funds are at the respective companies’ discretion. As of December 31, 2022 and 2023, the Company’s PRC subsidiaries, VIE and VIE’s subsidiaries had appropriated RMB 23,599,304 and RMB 23,557,710, respectively, in its statutory reserves. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on the consolidated financial statements. June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of income and cash flows. |
Organization and Business Des_2
Organization and Business Description (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Business Description [Abstract] | |
Schedule of Major Subsidiaries, VIE and VIE’s Subsidiaries | As of December 31, 2023, the Company’s major subsidiaries, VIE and VIE’s subsidiaries are as follows: Place and date of Percentage of Issued and fully Name establishment Directly Indirectly share capital Principal activities Jianzhi Education Group Company Limited British Virgin Islands (“BVI”), limited liability company March 20, 2018 100 % — USD1 Investment holding Jianzhi Education Technology (HK) Company Limited (“Jianzhi HK”) Hong Kong, limited liability company April 3, 2018 — 100% owned by Jianzhi Education (BVI) HKD1 Investment holding Jianzhi Inc. USA, limited liability company November 2 2022 — 100% owned by Jianzhi Education (BVI) USD1 Investment holding HongKong Sentu Education Technology Ltd. (“Sentu HK”) Hong Kong, November 14, 2016 — 100% owned by Jianzhi Education (HK) HKD10,000,000 Provision of training service Jianzhi Century Technology (Beijing) Co., Ltd. PRC, April 17, 2018 — 100% owned by Jianzhi Education (HK) HKD10,000,000 Provision of technical and management consultancy services Beijing Sentu Lejiao Information Technology Co., Ltd (“Sentu Lejiao”) PRC, June 13, 2016 100% owned by Jianzhi Beijing RMB10,000,000 Provision of IT related solution service Sentu Shuzhi Technology (Beijing) Co., Ltd (“Sentu Shuzhi”) PRC, June 2, 2021 100% owned by Sentu Lejiao — Provision of IT related solution service Beijing Sentu Education Technology Co., Ltd.(“Beijing Sentu”) PRC, May 27, 2011 Contractual arrangements RMB26,100,000 Provision of educational content and IT related solution services Shanghai Ang’you Internet Technology Co., Ltd. PRC, January 11, 2016 — 51.2% owned by Beijing Sentu RMB10,500,000 Provision of mobile media services and educational content Guangzhou Xingzhiqiao Information Technology Co., Ltd. PRC, May 6, 2011 100% owned by Beijing Sentu RMB1,000,000 Provision of mobile media services Sentu Guoxin Education Technology (Beijing) Co., Ltd (“Sentu Guoxin”) PRC, December 5, 2016 70% owned by Beijing Sentu RMB2,000,000 Provision of technology, education consultancy (excluding agent services) services Guangzhou Lianhe Education Technology Co., Ltd PRC, September 28, 2016 — 100% owned by Guangzhou Xingzhiqiao RMB300,000 Provision of mobile media services and educational content Wuhan Crossboarder Information Co., Ltd. PRC, December 2, 2022 51% owned by Sentu Guoxin RMB nil Provision of technology, education consultancy (excluding agent services) services |
Schedule of Carrying Amounts of the Assets, Liabilities and the Results of Operations of the VIE and VIE’s Subsidiaries | the subsidiaries of the VIE and the Company and its subsidiaries, are as follows: December 31, December 31, RMB RMB Assets Current assets: Cash and cash equivalents 28,836,178 2,697,832 Accounts receivable, net 16,154,956 1,718,155 Inventories 4,867 - Short-term prepayments 17,269,868 264,425 Short-term investments 4,080,000 4,223,894 Prepaid expenses and other current assets 1,445,461 8,653,231 Amount due from the Company and its subsidiaries* 7,800,808 — Total current assets 75,592,138 17,557,537 Non-current assets: Right-of-use assets, net — 4,307,991 Deferred tax assets, net 9,086,144 10,157,608 Property and equipment, net 109,073 171,127 Educational contents, net 36,713,836 — Long-term prepayments 28,160,377 181,132 Total non-current assets 74,069,430 14,817,858 Total assets 149,661,568 32,375,395 * As of December 31, 2022 and 2023, amounts due from the Company and its subsidiaries represent the receivables that VIEs had with the Company and its consolidation subsidiaries, which would be eliminated upon consolidation. December 31, December 31, RMB RMB Liabilities Current liabilities: Accounts payable 6,737,217 6,099,637 Salary and welfare payable 876,492 1,333,666 Contract liabilities 28,195,618 14,013,525 Income taxes payable 3,816,703 1,073,181 Value added tax (“VAT”) and other tax payable — 3,937,133 Other payables 1,567,742 1,877,474 Lease liabilities, current — — Amount due to related parties 24,702,000 2,185,832 Amount due from the Company and its subsidiaries* — 1,228,446 Total current liabilities 65,895,772 31,748,894 Non-current liabilities: Deferred tax liabilities — 1,326,092 Account payable to WFOE — 2,080,868 Total non-current liabilities — 3,406,960 Total liabilities 65,895,772 35,155,854 For the years ended 2021 2022 2023 RMB RMB RMB Net revenues 355,513,276 227,046,277 91,618,100 Net income (loss) 14,780,648 (88,740,821 ) (83,941,158 ) For the years ended 2021 2022 2023 RMB RMB RMB Net cash provided by (used in) operating activities 20,840,090 13,119,714 (7,610,570 ) Net cash used in investing activities (18,093,127 ) (7,198,149 ) (18,527,776 ) Net cash used in financing activities (547,302 ) — — * As of December 31, 2022 and 2023, amounts to from the Company and its subsidiaries represent the payables that VIEs had with the Company and its consolidation subsidiaries, which would be eliminated upon consolidation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | The estimated useful lives are as follows: Leasehold improvement Shorter of lease terms and estimated useful lives Fixture and furniture 3 – 10 years Office equipment 3 – 5 years Motor vehicles 4 years Produced educational content 5 years Licensed copyrights Shorter of the licensed period or projected useful life of the content |
Schedule of Disaggregated Revenue from Contracts with Customers | The following table summarizes disaggregated revenue from contracts with customers by service type: For the years ended 2021 2022 2023 RMB RMB RMB Revenue from educational content service and other services – Subscription revenue 148,041,259 59,217,081 16,385,013 – Licensing revenue 204,369,087 141,957,541 16,683,141 – Other services revenue 12,661,341 3,741,453 38,669,659 Subtotal 365,071,687 204,916,075 71,737,814 Revenue from IT related solution services 108,175,596 300,808,236 368,798,818 Total 473,247,283 505,724,311 440,536,632 For the years ended 2021 2022 2023 RMB RMB RMB Services transferred at a point in time – Revenue from educational content service 204,369,087 141,957,541 16,683,141 – Revenue from IT related solution services 108,070,096 299,803,227 368,742,494 Services transferred over time – Revenue from educational content service 160,702,600 62,958,534 55,054,673 – Revenue from IT related solution services 105,500 1,005,009 56,324 Total 473,247,283 505,724,311 440,536,632 |
Schedule of Contract Liabilities | The details of contract liabilities are as follows: December 31, December 31, December 31, RMB RMB RMB Advance from educational content service and other services – Subscription service 8,411,203 12,020,547 12,855,928 – Licensing service 15,119,929 172,690 - 23,531,132 12,193,237 12,855,928 Advance from IT related solution services 303,768,095 277,834,773 73,876,049 Total 327,299,227 290,028,010 86,731,977 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable Net [Abstract] | |
Schedule of Accounts Receivable Net | December 31, December 31, RMB RMB Accounts receivable 53,880,520 42,522,740 Allowance for credit losses (36,707,499 ) (37,610,720 ) Accounts receivable, net 17,173,021 4,912,020 |
Schedule of Allowance for Doubtful Accounts | The following table presents movement of the allowance for credit losses: December 31, December 31, RMB RMB Balance at the beginning of the year 1,806,001 36,707,499 Provisions 34,901,498 1,042,983 Write-offs — (139,762 ) Balance at the end of the year 36,707,499 37,610,720 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | The prepaid expenses and other current assets consist of the following: December 31, December 31, RMB RMB Tax recoverable — 8,909,126 Deposits 5,824,379 1,675,632 Loan receivable due from a third party 3,101,910 4,000,000 Prepaid expense 523,039 228,477 Other receivables 68,998 101,249 9,518,326 14,914,484 |
Educational Contents, Net (Tabl
Educational Contents, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Educational Contents Net [Abstract] | |
Schedule of Educational Contents Net | Educational contents, net consist of the following: December 31, December 31, RMB RMB Produced educational contents 66,037,733 — Licensed copyrights 219,658,471 — Less: Accumulated amortization (71,254,389 ) — 214,441,814 — |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Stated At Cost less Accumulated Amortization | Intangible assets, stated at cost less accumulated amortization, consisted of the following December 31, December 31, RMB RMB Software and technology — 1,509,432 Less: accumulated amortization — (251,572 ) — 1,257,860 |
Schedule of Estimated Amortization Expense | Estimated amortization expense relating to the educational contents for each of the next five Year ending December 31, RMB 2024 301,886 2025 301,886 2026 301,886 2027 301,886 2028 50,316 Total expected amortization expense 1,257,860 |
Prepayments (Tables)
Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments [Abstract] | |
Schedule of Prepayments | December 31, December 31, RMB RMB Short-term prepayments Advance to suppliers for services and inventories (1) 254,493,399 77,950,037 Long-term prepayments Prepayment for educational content 151,779,105 8,815,919 (1) Short-term prepayments represent advance to suppliers for purchasing services or inventories. In 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries entered into several IT equipment procurement agreements with third party suppliers in the total contract amount of RMB 344.45 million, pursuant to which the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries prepaid cash in an aggregated of RMB 254.5 million, or 74% of the total contract amount to these suppliers. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries purchased these IT equipment for purpose of 27 IT solution services projects. Subsequently, as of the date of this report, IT equipment associated with 23 projects with value of RMB 344.45 million were delivered and RMB 305 million prepayments were settled. (2) As of December 31, 2023, the Company reviewed the long-term prepayments for educational content. The Company expected that these educational contents would be outdated when they are delivered. The cash flows generated from subscription for these educational contents may not cover the purchase price. Accordingly, the Company charged impairment of RMB 155,307,333 against long-term prepayments. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease Related Assets and Liabilities | The table below presents the operating lease related assets and liabilities recorded on the consolidated balance sheets. December 31, December 31, RMB RMB Right of use assets — 7,604,933 Operating lease liabilities, current — 3,482,876 Operating lease liabilities, noncurrent — 4,035,598 Total operating lease liabilities — 7,518,474 |
Schedule of Cash Flow Information Related to Leases | Cash flow information related to leases consists of the following: For the years ended 2022 2023 RMB RMB Operating cash payments for operating leases 3,031,888 1,801,311 Right-of-use assets obtained in exchange for operating lease liabilities — 9,349,932 |
Schedule of Other Information About Company’s Leases | Other information about the Company’s leases is as follows: For the years ended 2022 2023 RMB RMB Weighted average remaining lease term (years) — 2.37 Weighted average discount rate 4.20 % 3.45 % |
Schedule of Maturities of Lease Liabilities | The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2023: Year ending December 31, RMB 2024 3,305,400 2025 2,862,103 2026 1,741,143 2027 - 2028 - Total lease payments 7,908,646 Less: Imputed interest (390,171 ) Present value of lease liabilities 7,518,474 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of the Composition of Income Tax Expenses | The following table presents the composition of income tax expenses (benefits) for the years ended December 31, 2021, 2022 and 2023: For the years ended 2021 2022 2023 RMB RMB RMB Current income tax expense (5,897,409 ) — — Deferred income benefits (expenses) 1,030,042 10,980,054 (211,267 ) Total Income tax (expenses) benefits (4,867,367 ) 10,980,054 (211,267 ) |
Schedule of Reconciliation of Differences Between Statutory Income Tax Rate and Effective Income Tax Rate | The following table presents a reconciliation of the differences between the statutory income tax rate and the effective income tax rate for the years ended December 31, 2021, 2022 and 2023: For the years ended 2021 2022 2023 % % % PRC statutory rate 25.0 % 25.0 % 25.0 % Effect of differing tax rates in different jurisdictions 2.1 % (0.8 )% (5.5 )% Permanent difference (7.2 )% 1.5 % 0.6 % Favorable tax rate impact (12.7 )% 7.0 % 0.0 % Unrecognized loss 0.0 % 0.0 % 0.1 % Change in valuation allowance 0.3 % (27.4 )% (20.2 )% Income tax (expenses) benefits 7.5 % 5.3 % (0.0 )% |
Schedule of Deferred Tax | The tax effects of temporary differences that give rise to the deferred tax balances at December 31, 2022 and 2023 are as follows: December 31, December 31, RMB RMB Deferred tax assets: Bad debt provision 9,176,875 97,681,819 Operating lease liabilities — 1,879,619 Net operating losses carried forward 58,728,788 56,353,847 Valuation allowance (58,728,788 ) (144,689,121 ) Deferred tax assets, net 9,176,875 11,226,164 Deferred tax liabilities: Right-of-use assets — 2,274,256 |
Related Party Balances and Tr_2
Related Party Balances and Transaction (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party balances and transaction [Abstract] | |
Schedule of Related Party Balances and Transaction | Name Relationship December 31, December 31, RMB RMB Due from related parties Peixuan Wang (a) Chairwomen of the Company 1,051,869 1,010,584 Beijing Dongxu Tongda Information Technology Co., Ltd. Controlled by Jiniao Li — 882,075 Others — 279,905 Total amount due from related parties 1,051,869 2,172,565 Due to related parties Rongde Holdings Co., Ltd. (“Rongde”) (c) Shareholder of the Company 28,009,457 21,867,376 Xinyu Tongkezhiyong Enterprise Management Center (Xinyu Tongkezhiyong) (b) Controlled by Qizhang Li 24,700,000 24,700,000 Beijing Sentu Cloud Creative Education Technology Co., Ltd. Controlled by Huidong Niu 700,000 Others — 238,248 Total amount due to related parties 52,711,457 47,505,624 (a) During the year ended December 31, 2021, our chairwomen of board of directors, Peixuan Wang, paid off professional fees on behalf of the Company in the amount of RMB 2,485,486 and the Company repaid the payment in the same year. In addition, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries advanced RMB 2,473,750 to Peixuan Wang for payments of professional fees. During the year ended December 31, 2022, Peixuan Wang returned RMB 1,421,881 to the Company. As of December 31, 2022 and 2023, the Company had a balance of due from a related party of RMB 1,051,869 and RMB 1,010,584. (b) As of December 31, 2021 and December 31, 2022, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries had balance due to Xinyu Tongkezhiyong Enterprise Management Center in the amount of RMB 24,700,000 and RMB 24,700,000, respectively, representing the outstanding payables to Xinyutong Kezhiyong Enterprise Management Center for the purchase of 51% equity interest of Xingzhiqiao on September 30, 2017 and 49% equity interest of Xingzhiqiao on August 31, 2018. (c) On May 18, 2021 and July 26, 2021, the Company’s subsidiary and Rongde entered into two loan agreements, pursuant to which the Company’s subsidiary borrowed an aggregation of RMB 47,168,356 from Rongde. The borrowings are interest free. The proceeds from borrowings are for the working capital needs in operations. During the year ended December 31, 2022, the Company and its wholly-owned subsidiaries repaid RMB 19,963,743 to Rongde, with remaining balance of RMB 28,009,457 extended to April 7, 2023. During the year ended December 31, 2023, the Company and its wholly-owned subsidiaries repaid RMB 25,300,980 to Rongde, with remaining balance of RMB 21,867,376 extended to April 7, 2024. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Presents Revenue by Segment | The following table presents revenue by segments for the years ended December 31, 2021, 2022 and 2023, respectively: For the Year Ended December 31, 2021 IT related Educational Total RMB RMB RMB Revenue 108,175,596 365,071,687 473,247,283 Cost of revenue and related tax (57,714,804 ) (311,337,330 ) (369,052,134 ) Gross profit 50,460,792 53,734,357 104,195,149 Depreciation and amortization 105,523 3,914,361 4,019,884 Net income 27,851,387 25,079,237 52,930,624 For the Year Ended December 31, 2022 IT related Educational Total RMB RMB RMB Revenue 300,808,236 204,916,075 505,724,311 Cost of revenue and related tax (278,136,091 ) (233,129,243 ) (511,265,334 ) Gross profit 22,672,145 (28,213,168 ) (5,541,023 ) Depreciation and amortization 51,190 3,905,647 3,956,837 Net loss (1,616,559 ) (194,966,487 ) (196,583,046 ) For the Year Ended December 31, 2023 IT related Educational Total RMB RMB RMB Revenue 368,798,818 71,373,814 440,536,632 Cost of revenue and related tax (323,533,990 ) (100,811,626 ) (424,345,616 ) Gross profit 45,264,828 (29,073,812 ) 16,191,016 Depreciation and amortization 251,572 — 251,572 Net loss (304,403,355 ) (78,409,908 ) (382,813,263 ) |
Schedule of Identifiable Long-Lived Assets, Net | December 31, December 31, RMB RMB Identifiable long-lived assets, net: IT related solution services — 1,257,860 Educational content service and other services 214,441,814 — Total 214,441,814 — |
Financial Information of the _2
Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Balance Sheets | Balance Sheets December 31, December 31, December 31, RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 34,314,420 324,303 45,677 Due from a related party 1,044,993 1,003,476 141,337 Total current assets 35,359,413 1,327,779 187,014 Non-current assets: Investment in subsidiaries, VIE and VIE’s subsidiaries 220,666,567 — — Amounts due from subsidiaries, VIE and VIE’s subsidiaries 114,574,974 85,581,297 12,053,874 Total non-current assets 315,241,541 85,581,297 12,053,874 Total assets 350,600,954 86,909,076 12,240,888 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Investment deficits in subsidiaries, VIE and VIE’s subsidiaries — 109,361,012 15,403,176 Accrued expenses and other liabilities 487,302 1,053,376 148,365 Total current liabilities 487,302 110,414,388 15,551,541 Total liabilities 487,302 110,414,388 15,551,541 December 31, December 31, December 31, RMB RMB US$ Shareholders’ equity (deficit): Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized, 121,110,000 and 121,110,000 issued and outstanding as of December 31, 2022 and 2023) 77,746 77,747 12,111 Additional paid-in capital 242,093,942 238,567,906 33,600,426 Statutory reserves 23,599,304 23,557,710 3,318,034 Retained earnings (accumulated deficit) 81,822,030 (291,805,140 ) (41,099,902 ) Accumulated other comprehensive income 2,520,630 6,096,465 858,678 Total shareholders’ equity (deficit) 350,113,652 (23,505,312 ) (3,310,653 ) Total liabilities and shareholders’ equity (deficit) 350,600,954 86,909,076 12,240,888 |
Schedule of Statements of Comprehensive Operations | Statements of Comprehensive Operations For the Years Ended December 31, 2021 2022 2023 2023 RMB RMB RMB US$ Operating costs and expenses: Selling, general and administrative (3,515,595 ) 5,677,577 (8,549,401 ) (1,204,158 ) Impairment of long-term prepayments — — (54,923,757 ) (7,735,849 ) Share of income (loss) of subsidiaries, VIEs and VIEs’ subsidiaries 51,773,864 (204,839,384 ) (310,027,579 ) (43,666,470 ) Net income (loss) 48,258,269 (199,161,807 ) (373,500,737 ) (52,606,461 ) Net income (loss) attributable to ordinary shareholders 48,258,269 (199,161,807 ) (373,500,737 ) (52,606,461 ) Other comprehensive income Foreign currency translation adjustments 211,494 2,120,397 3,575,835 503,646 Total other comprehensive income 211,494 2,120,397 3,575,835 503,646 Comprehensive income (loss) 48,469,763 (197,041,410 ) (369,924,902 ) (52,102,815 ) |
Schedule of Statements of Cash Flows | Statements of Cash Flows For the Years Ended December 31, 2021 2022 2022 2022 RMB RMB RMB US$ Net cash used in operating activities (40,186 ) (3,460,086 ) (8,682,450 ) (1,222,898 ) Net cash used in investing activities — (109,865,693 ) (21,898,393 ) (3,084,324 ) Net cash provided by (used in) financing activities 6,353,868 140,000,402 (7,797,900 ) (1,098,311 ) Effect of exchange rate changes on cash and cash equivalents (62,295 ) 1,290,142 4,388,627 618,125 Net increase (decrease) in cash and cash equivalents 6,251,387 27,964,765 (33,990,117 ) (4,787,408 ) Cash and cash equivalents at the beginning of the year 98,268 6,349,655 34,314,420 4,388,085 Cash and cash equivalents at the end of the year 6,349,655 34,314,420 324,303 45,677 |
Organization and Business Des_3
Organization and Business Description (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Aug. 25, 2022 CNY (¥) shares | Aug. 25, 2022 USD ($) $ / shares shares | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Organization and Business Description (Details) [Line Items] | ||||||
Gross proceeds from initial public offerings | ¥ 146,982,044 | |||||
Net proceeds | ¥ 148,000,000 | $ 21.5 | ||||
Loss | 2,125,365 | |||||
Material contract | 100,000 | |||||
Sell assets | ¥ 100,000 | |||||
Beijing Sentu [Member] | ||||||
Organization and Business Description (Details) [Line Items] | ||||||
Percenatge of profit before tax | 100% | 100% | ||||
Sentu Guoxin [Member] | ||||||
Organization and Business Description (Details) [Line Items] | ||||||
Ownership interests | 70% | |||||
Ms. Wang Peixuan [Member] | ||||||
Organization and Business Description (Details) [Line Items] | ||||||
Ownership interests | 54.78% | |||||
IPO [Member] | ||||||
Organization and Business Description (Details) [Line Items] | ||||||
Stock issued (in Shares) | shares | 5,000,000 | 5,000,000 | ||||
Shares offering price (in Dollars per share) | $ / shares | $ 5 | |||||
Gross proceeds from initial public offerings | ¥ 171,200,000 | $ 25 |
Organization and Business Des_4
Organization and Business Description (Details) - Schedule of Major Subsidiaries, VIE and VIE’s Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
Jianzhi Education Group Company Limited [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | British Virgin Islands (“BVI”), limited liability company March 20, 2018 |
Percentage of ownership interest voting rights directly | 100% |
Percentage of ownership interest voting rights indirectly | |
Issued and fully paid ordinary share capital | |
Principal activities | Investment holding |
Jianzhi Education Technology (HK) Company Limited [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | Hong Kong, limited liability company April 3, 2018 |
Percentage of ownership interest voting rights directly | |
Percentage of ownership interest voting rights indirectly | 100% owned by Jianzhi Education (BVI) |
Issued and fully paid ordinary share capital | HKD1 |
Principal activities | Investment holding |
Jianzhi Inc. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | USA, limited liability company November 2 2022 |
Percentage of ownership interest voting rights directly | |
Percentage of ownership interest voting rights indirectly | 100% owned by Jianzhi Education (BVI) |
Issued and fully paid ordinary share capital | USD1 |
Principal activities | Investment holding |
HongKong Sentu Education Technology Ltd. (“Sentu HK”) [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | Hong Kong, November 14, 2016 |
Percentage of ownership interest voting rights directly | |
Percentage of ownership interest voting rights indirectly | 100% owned by Jianzhi Education (HK) |
Issued and fully paid ordinary share capital | HKD10,000,000 |
Principal activities | Provision of training service |
Jianzhi Century Technology (Beijing) Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, April 17, 2018 |
Percentage of ownership interest voting rights directly | |
Percentage of ownership interest voting rights indirectly | 100% owned by Jianzhi Education (HK) |
Issued and fully paid ordinary share capital | HKD10,000,000 |
Principal activities | Provision of technical and management consultancy services |
Beijing Sentu Lejiao Information Technology Co., Ltd (“Sentu Lejiao”) [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, June 13, 2016 |
Percentage of ownership interest voting rights indirectly | 100% owned by Jianzhi Beijing |
Issued and fully paid ordinary share capital | RMB10,000,000 |
Principal activities | Provision of IT related solution service |
Sentu Shuzhi Technology (Beijing) Co., Ltd (“Sentu Shuzhi”) [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, June 2, 2021 |
Percentage of ownership interest voting rights indirectly | 100% owned by Sentu Lejiao |
Issued and fully paid ordinary share capital | |
Principal activities | Provision of IT related solution service |
Beijing Sentu Education Technology Co., Ltd.(“Beijing Sentu”) [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, May 27, 2011 |
Percentage of ownership interest voting rights indirectly | Contractual arrangements |
Issued and fully paid ordinary share capital | RMB26,100,000 |
Principal activities | Provision of educational content and IT related solution services |
Shanghai Ang’you Internet Technology Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, January 11, 2016 |
Percentage of ownership interest voting rights directly | |
Percentage of ownership interest voting rights indirectly | 51.2% owned by Beijing Sentu |
Issued and fully paid ordinary share capital | RMB10,500,000 |
Principal activities | Provision of mobile media services and educational content |
Guangzhou Xingzhiqiao Information Technology Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, May 6, 2011 |
Percentage of ownership interest voting rights indirectly | 100% owned by Beijing Sentu |
Issued and fully paid ordinary share capital | RMB1,000,000 |
Principal activities | Provision of mobile media services |
Sentu Guoxin Education Technology (Beijing) Co., Ltd (“Sentu Guoxin”) [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, December 5, 2016 |
Percentage of ownership interest voting rights indirectly | 70% owned by Beijing Sentu |
Issued and fully paid ordinary share capital | RMB2,000,000 |
Principal activities | Provision of technology, education consultancy (excluding agent services) services |
Guangzhou Lianhe Education Technology Co., Ltd [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, September 28, 2016 |
Percentage of ownership interest voting rights directly | |
Percentage of ownership interest voting rights indirectly | 100% owned by Guangzhou Xingzhiqiao |
Issued and fully paid ordinary share capital | RMB300,000 |
Principal activities | Provision of mobile media services and educational content |
Wuhan Crossboarder Information Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place and date of incorporation/ establishment | PRC, December 2, 2022 |
Percentage of ownership interest voting rights indirectly | 51% owned by Sentu Guoxin |
Issued and fully paid ordinary share capital | RMB nil |
Principal activities | Provision of technology, education consultancy (excluding agent services) services |
Organization and Business Des_5
Organization and Business Description (Details) - Schedule of Carrying Amounts of the Assets, Liabilities and the Results of Operations of the VIE and VIE’s Subsidiaries - VIE [Member] - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Current assets: | ||||
Cash and cash equivalents | ¥ 2,697,832 | ¥ 28,836,178 | ||
Accounts receivable, net | 1,718,155 | 16,154,956 | ||
Inventories | 4,867 | |||
Short-term prepayments | 264,425 | 17,269,868 | ||
Short-term investments | 4,223,894 | 4,080,000 | ||
Prepaid expenses and other current assets | 8,653,231 | 1,445,461 | ||
Amount due from the Company and its subsidiaries* | [1] | 7,800,808 | ||
Total current assets | 17,557,537 | 75,592,138 | ||
Non-current assets: | ||||
Right-of-use assets, net | 4,307,991 | |||
Deferred tax assets, net | 10,157,608 | 9,086,144 | ||
Property and equipment, net | 171,127 | 109,073 | ||
Educational contents, net | 36,713,836 | |||
Long-term prepayments | 181,132 | 28,160,377 | ||
Total non-current assets | 14,817,858 | 74,069,430 | ||
Total assets | 32,375,395 | 149,661,568 | ||
Current liabilities: | ||||
Accounts payable | 6,099,637 | 6,737,217 | ||
Salary and welfare payable | 1,333,666 | 876,492 | ||
Contract liabilities | 14,013,525 | 28,195,618 | ||
Income taxes payable | 1,073,181 | 3,816,703 | ||
Value added tax (“VAT”) and other tax payable | 3,937,133 | |||
Other payables | 1,877,474 | 1,567,742 | ||
Lease liabilities, current | ||||
Amount due to related parties | 2,185,832 | 24,702,000 | ||
Amount due from the Company and its subsidiaries* | [1] | 1,228,446 | ||
Total current liabilities | 31,748,894 | 65,895,772 | ||
Non-current liabilities: | ||||
Deferred tax liabilities | 1,326,092 | |||
Account payable to WFOE | 2,080,868 | |||
Total non-current liabilities | 3,406,960 | |||
Total liabilities | 35,155,854 | 65,895,772 | ||
Net revenues | 91,618,100 | 227,046,277 | ¥ 355,513,276 | |
Net income (loss) | (83,941,158) | (88,740,821) | 14,780,648 | |
Net cash provided by (used in) operating activities | (7,610,570) | 13,119,714 | 20,840,090 | |
Net cash used in investing activities | (18,527,776) | (7,198,149) | (18,093,127) | |
Net cash used in financing activities | ¥ (547,302) | |||
[1] As of December 31, 2022 and 2023, amounts due from the Company and its subsidiaries represent the receivables that VIEs had with the Company and its consolidation subsidiaries, which would be eliminated upon consolidation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Convenience fees | (per share) | ¥ 7.0999 | $ 1 | ||||
Inventory amount (in Yuan Renminbi) | ¥ 399,439 | |||||
Inventory write-downs (in Yuan Renminbi) | 399,439 | |||||
Property and equipment, net amount (in Yuan Renminbi) | 213,369 | 153,880 | ||||
Depreciation expense (in Yuan Renminbi) | 40,984 | 60,837 | 78,000 | |||
Good impairment (in Yuan Renminbi) | 7,712,011 | |||||
Accrued impairment charge (in Yuan Renminbi) | 197,466,973 | 106,182,780 | ||||
Accrued impairment charge (in Yuan Renminbi) | $ | $ 0 | |||||
Provided impairment against software and technology (in Yuan Renminbi) | 4,641,741 | 1,425,226 | ||||
Contract liability (in Yuan Renminbi) | ¥ 290,028,010 | 23,531,132 | ||||
Gross sales price | 16% | 16% | ||||
Net loss (in Yuan Renminbi) | ¥ (382,813,263) | $ (53,918,103) | (196,583,046) | 52,930,624 | ||
Accumulated deficit (in Yuan Renminbi) | 291,805,140 | |||||
Cash used in operating activities (in Yuan Renminbi) | ¥ 15,159,956 | $ 2,135,249 | ¥ 94,222,109 | ¥ 147,773,587 | ||
Recognition of Asset and Liability for Lease of Acquiree [Policy Text Block] | nil | nil | ||||
Cash and cash equivalents (in Yuan Renminbi) | ¥ 18,175,959 | |||||
Accounts receivable percentage | 10% | |||||
Statutory surplus rate | 10% | 10% | ||||
Registered capital | 50% | 50% | ||||
Tax profit rate | 10% | 10% | ||||
General reserve fund | 50% | 50% | ||||
Variable interest (in Yuan Renminbi) | ¥ 23,557,710 | ¥ 23,599,304 | ||||
Customer Contracts [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Accrued impairment charge (in Yuan Renminbi) | 10,714,000 | |||||
Purchased educational contents [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Impairment charge (in Yuan Renminbi) | 31,399,370 | 106,097,876 | ||||
Licensed copyrights [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Impairment charge (in Yuan Renminbi) | 166,067,603 | 84,904 | ||||
Related Party [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Due to related parties (in Yuan Renminbi) | ¥ 47,505,624 | ¥ 52,711,457 | $ 6,691,027 | |||
One Supplier [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Total purchases percentage | 38% | 38% | 60% | 39% | 39% | |
Percentage of accounts payable | 82% | |||||
Percentage of short-term prepayments | 75% | 75% | 19% | |||
Percentage of accounts payable | 65% | 65% | ||||
Two Supplier [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Total purchases percentage | 13% | 13% | 15% | 12% | 12% | |
Percentage of short-term prepayments | 24% | 24% | 11% | |||
Three Supplier [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Total purchases percentage | 9% | 9% | 13% | 12% | 12% | |
Percentage of short-term prepayments | 11% | |||||
Four Supplier [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Total purchases percentage | 12% | 12% | 12% | |||
Percentage of short-term prepayments | 10% | |||||
Four Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Total purchases percentage | 6% | 6% | ||||
One Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of total revenue | 37% | |||||
Two Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of total revenue | 12% | |||||
One Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Accounts receivable percentage | 42% | 42% | ||||
Percentage of total revenue | 21% | 33% | 33% | 21% | ||
Contract liabilities percentage | 68% | 68% | 32% | |||
Two Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Accounts receivable percentage | 28% | 28% | ||||
Percentage of total revenue | 16% | 14% | 14% | 16% | ||
Contract liabilities percentage | 15% | 15% | 13% | |||
Three Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Accounts receivable percentage | 15% | 15% | ||||
Percentage of total revenue | 12% | 13% | 13% | 12% | ||
Contract liabilities percentage | 12% | |||||
Four Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of total revenue | 11% | 11% | ||||
Contract liabilities percentage | 12% | |||||
Five Customer [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Contract liabilities percentage | 11% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | 12 Months Ended |
Dec. 31, 2023 | |
Leasehold improvement [Member] | |
Schedule of Estimated Useful Lives [Line Items] | |
Useful life | Shorter of lease terms and estimated useful lives |
Motor vehicles [Member] | |
Schedule of Estimated Useful Lives [Line Items] | |
Estimate useful life | 4 years |
Produced educational content [Member] | |
Schedule of Estimated Useful Lives [Line Items] | |
Estimate useful life | 5 years |
Licensed copyrights [Member] | |
Schedule of Estimated Useful Lives [Line Items] | |
Useful life | Shorter of the licensed period or projected useful life of the content |
Minimum [Member] | Fixture and furniture [Member] | |
Schedule of Estimated Useful Lives [Line Items] | |
Estimate useful life | 3 years |
Minimum [Member] | Office equipment [Member] | |
Schedule of Estimated Useful Lives [Line Items] | |
Estimate useful life | 3 years |
Maximum [Member] | Fixture and furniture [Member] | |
Schedule of Estimated Useful Lives [Line Items] | |
Estimate useful life | 10 years |
Maximum [Member] | Office equipment [Member] | |
Schedule of Estimated Useful Lives [Line Items] | |
Estimate useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Revenue from Contracts with Customers | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Revenue from educational content service and other services | ||||
Revenue from contracts with customers | ¥ 71,737,814 | ¥ 204,916,075 | ¥ 365,071,687 | |
Revenue | 440,536,632 | $ 62,048,287 | 505,724,311 | 473,247,283 |
Subscription revenue [Member] | ||||
Revenue from educational content service and other services | ||||
Revenue from contracts with customers | 16,385,013 | 59,217,081 | 148,041,259 | |
Licensing revenue [Member] | ||||
Revenue from educational content service and other services | ||||
Revenue from contracts with customers | 16,683,141 | 141,957,541 | 204,369,087 | |
Other services revenue [Member] | ||||
Revenue from educational content service and other services | ||||
Revenue from contracts with customers | 38,669,659 | 3,741,453 | 12,661,341 | |
Revenue from IT related solution services [Member] | ||||
Revenue from educational content service and other services | ||||
Other revenue | 368,798,818 | 300,808,236 | 108,175,596 | |
Revenue from educational content service [Member] | ||||
Revenue from educational content service and other services | ||||
Revenue from contracts with customers | 16,683,141 | 141,957,541 | 204,369,087 | |
Revenue from IT related solution services [Member] | ||||
Revenue from educational content service and other services | ||||
Revenue from contracts with customers | 368,742,494 | 299,803,227 | 108,070,096 | |
Revenue from educational content service [Member] | ||||
Revenue from educational content service and other services | ||||
Revenue from contracts with customers | 55,054,673 | 62,958,534 | 160,702,600 | |
Revenue from IT related solution services [Member] | ||||
Revenue from educational content service and other services | ||||
Revenue from contracts with customers | ¥ 56,324 | ¥ 1,005,009 | ¥ 105,500 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Contract Liabilities | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Advance from educational content service and other services | ||||
Advance from services | ¥ 12,855,928 | ¥ 12,193,237 | ¥ 23,531,132 | |
Total | 86,731,977 | 290,028,010 | 327,299,227 | $ 12,215,943 |
Subscription service [Member] | ||||
Advance from educational content service and other services | ||||
Advance from services | 12,855,928 | 12,020,547 | 8,411,203 | |
Licensing service [Member] | ||||
Advance from educational content service and other services | ||||
Advance from services | 172,690 | 15,119,929 | ||
Advance from IT related solution services [Member] | ||||
Advance from educational content service and other services | ||||
Advance from other services | ¥ 73,876,049 | ¥ 277,834,773 | ¥ 303,768,095 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable Net - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accounts Receivable Net [Abstract] | ||
Accounts receivable | ¥ 42,522,740 | ¥ 53,880,520 |
Allowance for doubtful accounts | (37,610,720) | (36,707,499) |
Accounts receivable, net | ¥ 4,912,020 | ¥ 17,173,021 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Allowance for Doubtful Accounts - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Allowance for Doubtful Accounts [Abstract] | ||
Balance at the beginning of the year | ¥ 36,707,499 | ¥ 1,806,001 |
Provisions | 1,042,983 | 34,901,498 |
Write-offs | (139,762) | |
Balance at the end of the year | ¥ 37,610,720 | ¥ 36,707,499 |
Short-Term Investments (Details
Short-Term Investments (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Short-Term Investments (Details) [Line Items] | |||
Short term investments | ¥ 4,223,849 | ||
Investment income | ¥ 600,375 | ¥ 603,058 | ¥ 569,737 |
Minimum [Member] | |||
Short-Term Investments (Details) [Line Items] | |||
Investment rate of return | 2.60% | ||
Maximum [Member] | |||
Short-Term Investments (Details) [Line Items] | |||
Investment rate of return | 4.35% | ||
VIE [Member] | |||
Short-Term Investments (Details) [Line Items] | |||
Short term investments | ¥ 4,080,000 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepaid Expenses and Other Current Assets - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Prepaid Expenses and Other Current Assets [Abstract] | ||
Tax recoverable | ¥ 8,909,126 | |
Deposits | 1,675,632 | 5,824,379 |
Loan receivable due from a third party | 4,000,000 | 3,101,910 |
Prepaid expense | 228,477 | 523,039 |
Other receivables | 101,249 | 68,998 |
Total | ¥ 14,914,484 | ¥ 9,518,326 |
Educational Contents, Net (Deta
Educational Contents, Net (Details) | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | |
Educational Contents Net [Line Items] | |||
Impairment charges (in Dollars) | $ | $ 0 | ||
Amortization expense | ¥ 53,922,689 | ¥ 91,542,455 | |
Purchased educational contents [Member] | |||
Educational Contents Net [Line Items] | |||
Accrued impairment charge | 31,399,370 | 106,097,876 | |
Licensed copyrights [Member] | |||
Educational Contents Net [Line Items] | |||
Accrued impairment charge | ¥ 166,067,603 | ¥ 84,904 |
Educational Contents, Net (De_2
Educational Contents, Net (Details) - Schedule of Educational Contents Net - Educational contents [Member] - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Educational Contents, Net (Details) - Schedule of Educational Contents Net [Line Items] | ||
Produced educational contents | ¥ 66,037,733 | |
Licensed copyrights | 219,658,471 | |
Less: Accumulated amortization | (71,254,389) | |
Total | ¥ 214,441,814 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of intangible assets | ¥ 4,641,741 | ¥ 1,425,226 |
Amortization expense | ¥ 2,074,929 | ¥ 5,047,982 |
Amortization expense, term | 5 years |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Stated At Cost less Accumulated Amortization - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Intangible Assets Stated At Cost less Accumulated Amortization [Abstract] | ||
Software and technology | ¥ 1,509,432 | |
Less: accumulated amortization | (251,572) | |
Total | ¥ 1,257,860 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Estimated Amortization Expense - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Estimated Amortization Expense Abstract | ||
2024 | ¥ 301,886 | |
2025 | 301,886 | |
2026 | 301,886 | |
2027 | 301,886 | |
2028 | 50,316 | |
Total expected amortization expense | ¥ 1,257,860 |
Prepayments (Details)
Prepayments (Details) | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Prepayments [Abstract] | ||||
Total contract amount | ¥ 344,450,000 | |||
Prepaid cash | ¥ 254,500,000 | |||
Percentage of total contract amount | 74% | 74% | ||
Associated projects | ¥ 344,450,000 | |||
Prepayments settled | 305,000,000 | |||
Impairment of long-term prepayments | ¥ 155,307,333 | $ 21,874,580 |
Prepayments (Details) - Schedul
Prepayments (Details) - Schedule of Prepayments - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Short-term prepayments | |||
Advance to suppliers for services and inventories | [1] | $ 77,950,037 | $ 254,493,399 |
Long-term prepayments | |||
Prepayment for educational content | $ 8,815,919 | $ 151,779,105 | |
[1]Short-term prepayments represent advance to suppliers for purchasing services or inventories. In 2023, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries entered into several IT equipment procurement agreements with third party suppliers in the total contract amount of RMB 344.45 million, pursuant to which the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries prepaid cash in an aggregated of RMB 254.5 million, or 74% of the total contract amount to these suppliers. The Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries purchased these IT equipment for purpose of 27 IT solution services projects. Subsequently, as of the date of this report, IT equipment associated with 23 projects with value of RMB 344.45 million were delivered and RMB 305 million prepayments were settled. |
Leases (Details)
Leases (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases (Details) [Line Items] | |||
Weighted average remaining lease term | 24 months | ||
Incurred operating lease expense | ¥ 3,452,190 | ¥ 3,031,888 | ¥ 1,940,818 |
Variable Interest Entities [Member] | |||
Leases (Details) [Line Items] | |||
Weighted average remaining lease term | 36 months |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Operating Lease Related Assets and Liabilities | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Operating Lease Related Assets and Liabilities [Abstract] | |||
Right of use assets | ¥ 7,604,933 | $ 1,071,132 | |
Operating lease liabilities, current | 3,482,876 | 490,553 | |
Operating lease liabilities, noncurrent | 4,035,598 | $ 568,402 | |
Total operating lease liabilities | ¥ 7,518,474 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Cash Flow Information Related to Leases - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Cash Flow Information Related to Leases [Abstract] | ||
Operating cash payments for operating leases | ¥ 1,801,311 | ¥ 3,031,888 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 9,349,932 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Other Information About Company’s Leases | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Other Information About Company’s Leases [Abstract] | ||
Weighted average remaining lease term | 2 years 4 months 13 days | |
Weighted average discount rate | 3.45% | 4.20% |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of Maturities of Lease Liabilities - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Maturities of Lease Liabilities [Abstract] | ||
2024 | ¥ 3,305,400 | |
2025 | 2,862,103 | |
2026 | 1,741,143 | |
2027 | ||
2028 | ||
Total lease payments | 7,908,646 | |
Less: Imputed interest | (390,171) | |
Present value of lease liabilities | ¥ 7,518,474 |
Income Taxes (Details)
Income Taxes (Details) ¥ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2023 HKD ($) | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | |
Income Taxes (Details) [Line Items] | ||||
Income taxable | $ 2 | ¥ 1,000,000 | ||
Tax rate | 75% | 75% | ||
Statutory enterprise income tax rate | 25% | 25% | 25% | 25% |
Preferential tax rate | 15% | 15% | ||
Reduced EIT rate | 20% | 20% | ||
Reduction (in Yuan Renminbi) | ¥ 3,000,000 | ¥ 3,000,000 | ¥ 3,000,000 | |
Income taxable (in Yuan Renminbi) | ¥ 20 | ¥ 1,000,000 | ||
Reduction of income tax percentage | 87.50% | |||
Reduction of taxable income | 75% | 87.50% | ||
Reduction of taxable income (in Yuan Renminbi) | ¥ 1,000,000 | ¥ 1,000,000 | ||
Estimated tax savings (in Yuan Renminbi) | ¥ 7,291,787 | |||
Estimated tax savings (in Yuan Renminbi per share) | ¥ / shares | ¥ 0.07 | |||
Tax losses (in Yuan Renminbi) | ¥ 395,307,903 | ¥ 236,254,725 | ||
Beijing Sentu [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
EIT rate | 15% | 15% | 15% | 15% |
HONG KONG [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Income taxable | $ | $ 2 | |||
Tax rate | 8.25% | 8.25% | ||
Applicable tax rate | 16.50% | 16.50% | ||
HONG KONG [Member] | Jianzhi Education [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Applicable tax rate | 16.50% | 16.50% | ||
China, Yuan Renminbi [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Tax rate | 50% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of the Composition of Income Tax Expenses - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of the Composition of Income Tax Expenses [Abstract] | |||
Current income tax expense | ¥ (5,897,409) | ||
Deferred income benefits (expenses) | (211,267) | 10,980,054 | 1,030,042 |
Total Income tax (expenses) benefits | ¥ (211,267) | ¥ 10,980,054 | ¥ (4,867,367) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Reconciliation of Differences Between Statutory Income Tax Rate and Effective Income Tax Rate | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Reconciliation of Differences Between Statutory Income Tax Rate and Effective Income Tax Rate [Abstract] | |||
PRC statutory rate | 25% | 25% | 25% |
Effect of differing tax rates in different jurisdictions | (5.50%) | (0.80%) | 2.10% |
Permanent difference | 0.60% | 1.50% | (7.20%) |
Favorable tax rate impact | 0% | 7% | (12.70%) |
Unrecognized loss | 0.10% | 0% | 0% |
Change in valuation allowance | (20.20%) | (27.40%) | 0.30% |
Income tax (expenses) benefits | 0% | 5.30% | 7.50% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Deferred Tax - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Bad debt provision | ¥ 97,681,819 | ¥ 9,176,875 |
Operating lease liabilities | 1,879,619 | |
Net operating losses carried forward | 56,353,847 | 58,728,788 |
Valuation allowance | (144,689,121) | (58,728,788) |
Deferred tax assets, net | 11,226,164 | 9,176,875 |
Deferred tax liabilities: | ||
Right-of-use assets | ¥ 2,274,256 |
Related Party Balances and Tr_3
Related Party Balances and Transaction (Details) $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Aug. 24, 2022 CNY (¥) | Aug. 24, 2022 HKD ($) | Jul. 26, 2021 CNY (¥) | May 18, 2021 CNY (¥) | Aug. 31, 2018 | Sep. 30, 2017 | |
Related Party Balances and Transaction (Details) [Line Items] | |||||||||
Professional Fees | ¥ 2,485,486 | ||||||||
Payments of professional fees | 2,473,750 | ||||||||
Repayment amount | ¥ 1,421,881 | ||||||||
Related party | 1,051,869 | ¥ 1,010,584 | |||||||
Borrowed amount | ¥ 13,700,000 | $ 16 | ¥ 47,168,356 | ¥ 47,168,356 | |||||
Loan amount | ¥ 13,920,083 | ||||||||
Incremental rate | 3.45% | ||||||||
Cash received | ¥ 484,370 | ||||||||
Xinyutong Kezhiyong Enterprise [Member] | |||||||||
Related Party Balances and Transaction (Details) [Line Items] | |||||||||
Due amount | 24,700,000 | ¥ 24,700,000 | |||||||
Related Party Balances And Transaction [Member] | |||||||||
Related Party Balances and Transaction (Details) [Line Items] | |||||||||
Cash received | 517,164 | ||||||||
Xingzhiqiao [Member] | |||||||||
Related Party Balances and Transaction (Details) [Line Items] | |||||||||
Equity interest | 49% | 51% | |||||||
Maximum [Member] | |||||||||
Related Party Balances and Transaction (Details) [Line Items] | |||||||||
Securities deposits remaining | 25,300,980 | 19,963,743 | |||||||
Minimum [Member] | |||||||||
Related Party Balances and Transaction (Details) [Line Items] | |||||||||
Securities deposits remaining | 21,867,376 | ¥ 28,009,457 | |||||||
Loans [Member] | |||||||||
Related Party Balances and Transaction (Details) [Line Items] | |||||||||
Loan amount | ¥ 14,862,174 |
Related Party Balances and Tr_4
Related Party Balances and Transaction (Details) - Schedule of Related Party Balances and Transaction - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Peixuan Wang [Member] | |||
Due from related parties | |||
Relationship | [1] | Chairwomen of the Company | |
Total amount due to related parties | [1] | ¥ 1,010,584 | ¥ 1,051,869 |
Beijing Dongxu Tongda Information Technology Co., Ltd. [Member] | |||
Due from related parties | |||
Relationship | Controlled by Jiniao Li | ||
Total amount due to related parties | ¥ 882,075 | ||
Others [Member] | |||
Due from related parties | |||
Total amount due to related parties | 279,905 | ||
Total amount due from related parties [Member] | |||
Due from related parties | |||
Total amount due to related parties | ¥ 2,172,565 | 1,051,869 | |
Rongde Holdings Co., Ltd. (“Rongde”) [Member] | |||
Due from related parties | |||
Relationship | [2] | Shareholder of the Company | |
Total amount due to related parties | [2] | ¥ 21,867,376 | 28,009,457 |
Xinyu Tongkezhiyong Enterprise Management Center (Xinyu Tongkezhiyong) [Member] | |||
Due from related parties | |||
Relationship | [3] | Controlled by Qizhang Li | |
Total amount due to related parties | [3] | ¥ 24,700,000 | 24,700,000 |
Beijing Sentu Cloud Creative Education Technology Co., Ltd. [Member] | |||
Due from related parties | |||
Relationship | Controlled by Huidong Niu | ||
Total amount due to related parties | ¥ 700,000 | ||
Others [Member] | |||
Due from related parties | |||
Total amount due to related parties | 238,248 | ||
Total amount due to related parties [Member] | |||
Due from related parties | |||
Total amount due to related parties | ¥ 47,505,624 | ¥ 52,711,457 | |
[1] During the year ended December 31, 2021, our chairwomen of board of directors, Peixuan Wang, paid off professional fees on behalf of the Company in the amount of RMB 2,485,486 and the Company repaid the payment in the same year. In addition, the Company, its wholly-owned subsidiaries, VIE and VIE’s subsidiaries advanced RMB 2,473,750 to Peixuan Wang for payments of professional fees. During the year ended December 31, 2022, Peixuan Wang returned RMB 1,421,881 to the Company. As of December 31, 2022 and 2023, the Company had a balance of due from a related party of RMB 1,051,869 and RMB 1,010,584. On May 18, 2021 and July 26, 2021, the Company’s subsidiary and Rongde entered into two loan agreements, pursuant to which the Company’s subsidiary borrowed an aggregation of RMB 47,168,356 from Rongde. The borrowings are interest free. The proceeds from borrowings are for the working capital needs in operations. During the year ended December 31, 2022, the Company and its wholly-owned subsidiaries repaid RMB 19,963,743 to Rongde, with remaining balance of RMB 28,009,457 extended to April 7, 2023. During the year ended December 31, 2023, the Company and its wholly-owned subsidiaries repaid RMB 25,300,980 to Rongde, with remaining balance of RMB 21,867,376 extended to April 7, 2024. |
Equity (Details)
Equity (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Millions | 12 Months Ended | |||||||
Aug. 25, 2022 shares | Mar. 12, 2018 USD ($) $ / shares shares | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2021 $ / shares shares | Jul. 08, 2021 $ / shares shares | Dec. 31, 2020 $ / shares shares | |
Equity (Details) [Line Items] | ||||||||
Shares authorized | 500,000,000 | 500,000,000 | ||||||
Shares par value (in Dollars per share) | (per share) | ¥ 0.0001 | $ 0.0001 | ¥ 0.0001 | |||||
Ordinary shares outstanding | 121,110,000 | 121,110,000 | ||||||
Ordinary shares issued | 121,110,000 | 121,110,000 | ||||||
Converted ordinary share | 11,110,000 | |||||||
Net assets (in Yuan Renminbi) | ¥ | ¥ 130 | |||||||
Ordinary Shares [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Shares authorized | 50,000 | 500,000,000 | 500,000,000 | |||||
Shares par value (in Dollars per share) | $ / shares | $ 1 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Ordinary shares, issued | 10,000 | |||||||
Shareholders exchange (in Dollars) | $ | $ 10,000 | |||||||
Ordinary shares | 100,000,000 | |||||||
Ordinary shares outstanding | 121,110,000 | 121,110,000 | 100,000,000 | 100,000,000 | ||||
Ordinary shares issued | 121,110,000 | 121,110,000 | 100,000,000 | 100,000,000 | ||||
Ordinary Shares [Member] | Board of Directors [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Shares par value (in Dollars per share) | $ / shares | $ 1 | |||||||
Ordinary shares, issued | 10,000 | |||||||
Profit Appropriation and Restricted Net Assets [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Statutory reserves percentage | 10% | |||||||
Initial Public Offering [Member] | ||||||||
Equity (Details) [Line Items] | ||||||||
Share issued | 5,000,000 |
Segment Information (Details) -
Segment Information (Details) - Schedule of Presents Revenue by Segment | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Revenue | ¥ 440,536,632 | $ 62,048,287 | ¥ 505,724,311 | ¥ 473,247,283 |
Cost of revenue and related tax | (424,345,616) | (59,767,805) | (511,265,334) | (369,052,134) |
Gross profit | 16,191,016 | $ 2,280,482 | (5,541,023) | 104,195,149 |
Depreciation and amortization | 251,572 | 3,956,837 | 4,019,884 | |
Net income loss | (382,813,263) | (196,583,046) | 52,930,624 | |
IT related solution services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 368,798,818 | 300,808,236 | 108,175,596 | |
Cost of revenue and related tax | (323,533,990) | (278,136,091) | (57,714,804) | |
Gross profit | 45,264,828 | 22,672,145 | 50,460,792 | |
Depreciation and amortization | 251,572 | 51,190 | 105,523 | |
Net income loss | (304,403,355) | (1,616,559) | 27,851,387 | |
Educational content service and other services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 71,373,814 | 204,916,075 | 365,071,687 | |
Cost of revenue and related tax | (100,811,626) | (233,129,243) | (311,337,330) | |
Gross profit | (29,073,812) | (28,213,168) | 53,734,357 | |
Depreciation and amortization | 3,905,647 | 3,914,361 | ||
Net income loss | ¥ (78,409,908) | ¥ (194,966,487) | ¥ 25,079,237 |
Segment Information (Details)_2
Segment Information (Details) - Schedule of Identifiable Long-Lived Assets, Net - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Identifiable long-lived assets, net: | ||
IT related solution services | ¥ 1,257,860 | |
Educational content service and other services | ¥ 214,441,814 | |
Total | ¥ 214,441,814 |
Subsequent Event (Details)
Subsequent Event (Details) - CNY (¥) ¥ in Millions | Jun. 26, 2024 | Jun. 25, 2024 |
Forecast [Member] | ||
Subsequent Event (Details) [Line Items] | ||
Agreement outstanding amount | ¥ 14.8 | ¥ 24.7 |
Financial Information of the _3
Financial Information of the Parent Company (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Information of the Parent Company (Details) [Line Items] | |
Percentage of net assets | 25% |
PRC subsidiary [Member] | |
Financial Information of the Parent Company (Details) [Line Items] | |
Percentage of net assets | 25% |
Financial Information of the _4
Financial Information of the Parent Company (Details) - Schedule of Balance Sheets - VIE [Member] | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 324,303 | $ 45,677 | ¥ 34,314,420 |
Due from a related party | 1,003,476 | 141,337 | 1,044,993 |
Total current assets | 1,327,779 | 187,014 | 35,359,413 |
Non-current assets: | |||
Investment in subsidiaries, VIE and VIE’s subsidiaries | 220,666,567 | ||
Amounts due from subsidiaries, VIE and VIE’s subsidiaries | 85,581,297 | 12,053,874 | 114,574,974 |
Total non-current assets | 85,581,297 | 12,053,874 | 315,241,541 |
Total assets | 86,909,076 | 12,240,888 | 350,600,954 |
Current liabilities | |||
Investment deficits in subsidiaries, VIE and VIE’s subsidiaries | 109,361,012 | 15,403,176 | |
Accrued expenses and other liabilities | 1,053,376 | 148,365 | 487,302 |
Total current liabilities | 110,414,388 | 15,551,541 | 487,302 |
Total liabilities | 110,414,388 | 15,551,541 | 487,302 |
Shareholders’ equity (deficit): | |||
Ordinary shares (US$0.0001 par value; 500,000,000 shares authorized, 121,110,000 and 121,110,000 issued and outstanding as of December 31, 2022 and 2023) | 77,747 | 12,111 | 77,746 |
Additional paid-in capital | 238,567,906 | 33,600,426 | 242,093,942 |
Statutory reserves | 23,557,710 | 3,318,034 | 23,599,304 |
Retained earnings (accumulated deficit) | (291,805,140) | (41,099,902) | 81,822,030 |
Accumulated other comprehensive income | 6,096,465 | 858,678 | 2,520,630 |
Total shareholders’ equity (deficit) | (23,505,312) | (3,310,653) | 350,113,652 |
Total liabilities and shareholders’ equity (deficit) | ¥ 86,909,076 | $ 12,240,888 | ¥ 350,600,954 |
Financial Information of the _5
Financial Information of the Parent Company (Details) - Schedule of Balance Sheets (Parentheticals) - VIE [Member] | Dec. 31, 2023 ¥ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 ¥ / shares shares |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares par value (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ 0.0001 | $ 0.0001 | ¥ 0.0001 |
Ordinary shares shares authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Ordinary shares shares issued | 121,110,000 | 121,110,000 | 121,110,000 |
Ordinary shares shares outstanding | 121,110,000 | 121,110,000 | 121,110,000 |
Financial Information of the _6
Financial Information of the Parent Company (Details) - Schedule of Statements of Comprehensive Operations - VIE [Member] | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Operating costs and expenses: | ||||
Selling, general and administrative | ¥ (8,549,401) | $ (1,204,158) | ¥ 5,677,577 | ¥ (3,515,595) |
Impairment of long-term prepayments | (54,923,757) | (7,735,849) | ||
Share of income (loss) of subsidiaries, VIEs and VIEs’ subsidiaries | (310,027,579) | (43,666,470) | (204,839,384) | 51,773,864 |
Net income (loss) | (373,500,737) | (52,606,461) | (199,161,807) | 48,258,269 |
Net income attributable to ordinary shareholders | (373,500,737) | (52,606,461) | (199,161,807) | 48,258,269 |
Other comprehensive income | ||||
Foreign currency translation adjustments | 3,575,835 | 503,646 | 2,120,397 | 211,494 |
Total other comprehensive income | 3,575,835 | 503,646 | 2,120,397 | 211,494 |
Comprehensive income (loss) | ¥ (369,924,902) | $ (52,102,815) | ¥ (197,041,410) | ¥ 48,469,763 |
Financial Information of the _7
Financial Information of the Parent Company (Details) - Schedule of Statements of Cash Flows - VIE [Member] | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash used in operating activities | ¥ (8,682,450) | $ (1,222,898) | ¥ (3,460,086) | ¥ (40,186) |
Net cash used in investing activities | (21,898,393) | (3,084,324) | (109,865,693) | |
Net cash provided by (used in) financing activities | (7,797,900) | (1,098,311) | 140,000,402 | 6,353,868 |
Effect of exchange rate changes on cash and cash equivalents | 4,388,627 | 618,125 | 1,290,142 | (62,295) |
Net increase (decrease) in cash and cash equivalents | (33,990,117) | (4,787,408) | 27,964,765 | 6,251,387 |
Cash and cash equivalents at the beginning of the year | 34,314,420 | 4,388,085 | 6,349,655 | 98,268 |
Cash and cash equivalents at the end of the year | ¥ 324,303 | $ 45,677 | ¥ 34,314,420 | ¥ 6,349,655 |