Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Entity Registrant Name | GIGACLOUD TECHNOLOGY INC |
Amendment Flag | false |
Entity Central Index Key | 0001857816 |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-41454 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Unit A, 12/F, Shun Ho Tower |
Entity Address, Address Line Two | 24-30 Ice House Street |
Entity Address, City or Town | Central |
Entity Address, Country | HK |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Title of 12(b) Security | Class A ordinary shares, par value $0.05 per share |
Trading Symbol | GCT |
Security Exchange Name | NASDAQ |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Entity Address, Postal Zip Code | 24-30 |
ICFR Auditor Attestation Flag | false |
Auditor Name | KPMG Huazhen LLP |
Auditor Location | Shanghai, People’s Republic of China |
Auditor Firm ID | 1186 |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Larry Lei Wu |
Entity Address, Address Line One | Unit A, 12/F, Shun Ho Tower |
Entity Address, Address Line Two | 24-30 Ice House Street |
Entity Address, City or Town | Central |
Entity Address, Country | HK |
Entity Address, Postal Zip Code | 24-30 |
City Area Code | 852 |
Local Phone Number | 2369-8219 |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 31,357,814 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 9,326,732 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 143,531 | $ 63,198 |
Restricted cash | 1,545 | 664 |
Accounts receivable, net | 27,142 | 18,036 |
Inventories | 78,338 | 81,441 |
Prepayments and other current assets | 7,566 | 9,080 |
Total current assets | 258,122 | 172,419 |
Non-current assets | ||
Operating lease right-of-use assets | 144,168 | |
Property and equipment, net | 13,053 | 11,075 |
Deferred tax assets | 75 | 72 |
Other non-current assets | 3,182 | 3,211 |
Total non-current assets | 160,478 | 14,358 |
Total assets | 418,600 | 186,777 |
Current liabilities | ||
Current portion of long-term borrowings | 207 | 345 |
Accounts payable (including accounts payable of VIEs without recourse to the Company of US$1,433 and US$4,185 as of December 31, 2021 and 2022, respectively) | 31,573 | 25,140 |
Contract liabilities (including contract liabilities of VIEs without recourse to the Company of US$394 and US$385 as of December 31, 2021 and 2022, respectively) | 2,001 | 3,690 |
Current operating lease liabilities (including current operating lease liabilities of VIEs without recourse to the Company of nil and US$1,864 as of December 31, 2021 and December 31, 2022, respectively) | 27,653 | |
Income tax payable (including income tax payable of VIEs without recourse to the Company of US$78 and US$280 as of December 31, 2021 and 2022, respectively) | 4,142 | 8,148 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of US$341 and US$442 as of December 31, 2021 and 2022, respectively) | 37,062 | 19,721 |
Total current liabilities | 102,638 | 57,044 |
Non-current liabilities | ||
Long-term borrowings | 0 | 237 |
Operating lease liabilities, non-current (including operating lease liabilities, non-current of VIEs without recourse to the Company of nil and US$3,322 as of December 31, 2021 and December 31, 2022, respectively) | 116,564 | |
Deferred tax liabilities | 472 | 286 |
Finance lease obligations, non-current | 867 | 2,345 |
Non-current income tax payable | 2,894 | 1,033 |
Total non-current liabilities | 120,797 | 3,901 |
Total liabilities | 223,435 | 60,945 |
Commitments and contingencies | ||
Mezzanine equity | ||
Total mezzanine equity | 26,652 | |
Shareholders' equity | ||
Ordinary shares | 554 | |
Treasury shares, at cost (nil and 4,624,039 shares held as of December 31, 2021 and December 31, 2022, respectively) | (231) | |
Subscription receivable from ordinary shares | (81) | (79) |
Additional paid-in capital | 109,049 | 37,439 |
Accumulated other comprehensive income (loss) | 804 | (165) |
Retained earnings | 83,590 | 60,559 |
Total shareholders' equity | 195,165 | 99,180 |
Total liabilities, mezzanine equity and shareholders' equity | 418,600 | 186,777 |
Series E Preferred Stock [Member] | ||
Mezzanine equity | ||
Series E Preferred Shares (US$0.05 par value per share, 3,999,709 shares authorized, issued and outstanding as of December 31, 2021; Redemption value of US$26,652 as of December 31, 2021; Liquidation value of US$25,000 as of December 31, 2021) | 26,652 | |
Series A Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred Share | 7 | |
Series B Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred Share | 500 | |
Series C Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred Share | 218 | |
Series D Preferred Stock [Member] | ||
Shareholders' equity | ||
Preferred Share | $ 147 | |
Common Class A [Member] | ||
Shareholders' equity | ||
Ordinary shares | 1,568 | |
Common Class B [Member] | ||
Shareholders' equity | ||
Ordinary shares | $ 466 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts payable | $ 31,573 | $ 25,140 |
Contract liabilities | 2,001 | 3,690 |
Current operating lease liabilities | 27,653 | |
Income tax payable | 4,142 | 8,148 |
Accrued expenses and other current liabilities | 37,062 | $ 19,721 |
Operating lease liabilities, non-current | $ 116,564 | |
Common stock, par value | $ 0.05 | |
Common stock, shares authorized | 38,572,025 | |
Common stock, shares issued | 11,082,930 | |
Common stock, shares outstanding | 11,082,930 | |
Treasury stock, shares | 4,624,039 | 0 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.05 | |
Preferred stock, shares authorized | 134,190 | |
Preferred stock, shares issued | 134,190 | |
Preferred stock, shares outstanding | 134,190 | |
Preferred stock, liquidation preference, value | $ 6,710 | |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.05 | |
Preferred stock, shares authorized | 9,991,588 | |
Preferred stock, shares issued | 9,991,588 | |
Preferred stock, shares outstanding | 9,991,588 | |
Preferred stock, liquidation preference, value | $ 5,000 | |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.05 | |
Preferred stock, shares authorized | 4,358,702 | |
Preferred stock, shares issued | 4,358,702 | |
Preferred stock, shares outstanding | 4,358,702 | |
Series D Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.05 | |
Preferred stock, shares authorized | 2,943,786 | |
Preferred stock, shares issued | 2,943,786 | |
Preferred stock, shares outstanding | 2,943,786 | |
Preferred stock, liquidation preference, value | $ 8,053 | |
Series E Preferred Stock [Member] | ||
Temporary equity, par or stated value per share | $ 0.05 | |
Temporary equity shares authorized | 3,999,709 | |
Temporary equity shares issued | 3,999,709 | |
Temporary equity shares outstanding | 3,999,709 | |
Temporary equity aggregate amount of redemption requirement | $ 26,652 | |
Temporary equity liquidation preference | 25,000 | |
Common Class A [Member] | ||
Common stock, par value | $ 0.05 | |
Common stock, shares authorized | 50,673,268 | |
Common stock, shares issued | 31,357,814 | |
Common stock, shares outstanding | 31,357,814 | |
Common Class B [Member] | ||
Common stock, par value | $ 0.05 | |
Common stock, shares authorized | 9,326,732 | |
Common stock, shares issued | 9,326,732 | |
Common stock, shares outstanding | 9,326,732 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Accounts payable | $ 4,185 | 1,433 |
Contract liabilities | 385 | 394 |
Current operating lease liabilities | 1,864 | 0 |
Income tax payable | 280 | 78 |
Accrued expenses and other current liabilities | 442 | 341 |
Operating lease liabilities, non-current | $ 3,322 | $ 0 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Revenues | $ 490,071 | $ 414,197 | $ 275,478 |
Cost of revenues | |||
Cost of revenues | (406,957) | (324,600) | (200,362) |
Gross profit | 83,114 | 89,597 | 75,116 |
Operating expenses | |||
Selling and marketing expenses | (24,038) | (25,728) | (22,215) |
General and administrative expenses | (22,627) | (24,516) | (8,717) |
Research and development expenses | (1,426) | 0 | 0 |
Total operating expenses | (48,091) | (50,244) | (30,932) |
Operating income | 35,023 | 39,353 | 44,184 |
Interest expense | (568) | (309) | (46) |
Interest income | 472 | 537 | 58 |
Foreign currency exchange gains (losses), net | (4,854) | (2,012) | 1,023 |
Government grants | 1,085 | 0 | 0 |
Others, net | 6 | 156 | 56 |
Income before income taxes | 31,164 | 37,725 | 45,275 |
Income tax expense | (7,192) | (8,468) | (7,820) |
Net income | 23,972 | 29,257 | 37,455 |
Accretion of Redeemable Convertible Preferred Shares | (941) | (1,500) | (152) |
Net income attributable to ordinary shareholders | 23,031 | 27,757 | 37,303 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment, net of nil income taxes | 969 | 123 | (364) |
Total other comprehensive income (loss) | 969 | 123 | (364) |
Comprehensive Income | $ 24,941 | $ 29,380 | $ 37,091 |
Net income per ordinary share | |||
Net income per ordinary share, Basic | $ 0.6 | $ 0.88 | $ 1.36 |
Net income per ordinary share, Diluted | $ 0.6 | $ 0.88 | $ 1.36 |
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share | |||
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share, Basic | 24,412,314 | 10,248,079 | 9,495,844 |
Weighted average number of ordinary shares outstanding used in computing net income per ordinary share, Diluted | 24,412,314 | 10,248,079 | 9,495,844 |
Service [Member] | |||
Revenues | |||
Revenues | $ 140,628 | $ 98,332 | $ 60,130 |
Cost of revenues | |||
Cost of revenues | (120,102) | (84,723) | (37,147) |
Product [Member] | |||
Revenues | |||
Revenues | 349,443 | 315,865 | 215,348 |
Cost of revenues | |||
Cost of revenues | $ (286,855) | $ (239,877) | $ (163,215) |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Other Comprehensive Income (Loss), Tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Conversion Of Series E Preferred Shares To Class A Ordinary Shares [Member] | Common Stock [Member] | Treasury Shares [Member] | Subscription Receivable From Ordinary Shares [Member] | Preferred Shares [Member] | Preferred Shares [Member] Conversion Of Preferred Shares To Class B Ordinary Shares [Member] | Preferred Shares [Member] Conversion Of Preferred Shares To Class A Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] Conversion Of Series E Preferred Shares To Class A Ordinary Shares [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Common Class A [Member] Common Stock [Member] | Common Class A [Member] Common Stock [Member] Conversion Of Preferred Shares To Class A Ordinary Shares [Member] | Common Class A [Member] Common Stock [Member] Conversion Of Series E Preferred Shares To Class A Ordinary Shares [Member] | Common Class B [Member] Common Stock [Member] | Common Class B [Member] Common Stock [Member] Conversion Of Preferred Shares To Class B Ordinary Shares [Member] | Class A Ordinary Shares [Member] Common Stock [Member] | Class B Ordinary Shares [Member] Common Stock [Member] |
Beginning Balance (Shares) at Dec. 31, 2019 | 9,495,844 | 17,428,266 | |||||||||||||||||
Begining Balance at Dec. 31, 2019 | $ 27,115 | $ 475 | $ 0 | $ 872 | $ 30,193 | $ 76 | $ (4,501) | ||||||||||||
Net income | 37,455 | 37,455 | |||||||||||||||||
Repurchase of vested share-based awards | (2,435) | (2,435) | |||||||||||||||||
Accretion of Series E Preferred Shares | (152) | (152) | |||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | (364) | (364) | |||||||||||||||||
Ending Balance (Shares) at Dec. 31, 2020 | 9,495,844 | 17,428,266 | |||||||||||||||||
Ending Balance at Dec. 31, 2020 | 61,619 | $ 475 | 0 | $ 872 | 27,758 | (288) | 32,802 | ||||||||||||
Net income | 29,257 | 29,257 | |||||||||||||||||
Accretion of Series E Preferred Shares | (1,500) | (1,500) | |||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | 123 | 123 | |||||||||||||||||
Share-based compensation | $ 9,681 | 9,681 | |||||||||||||||||
Excise of vested share-based awards (Shares) | 1,587,086 | 1,587,086 | |||||||||||||||||
Excise of vested share-based awards | $ 79 | (79) | |||||||||||||||||
Ending Balance (Shares) at Dec. 31, 2021 | 11,082,930 | 0 | 17,428,266 | 0 | 0 | ||||||||||||||
Ending Balance at Dec. 31, 2021 | $ 99,180 | $ 554 | $ 0 | (79) | $ 872 | 37,439 | (165) | 60,559 | $ 0 | $ 0 | |||||||||
Net income | 23,972 | 23,972 | |||||||||||||||||
Accretion of Series E Preferred Shares | (941) | (941) | |||||||||||||||||
Foreign currency translation adjustment, net of nil income taxes | 969 | 969 | |||||||||||||||||
Share-based compensation | 9,893 | 9,893 | |||||||||||||||||
Excise of vested share-based awards (Shares) | (141,864) | ||||||||||||||||||
Excise of vested share-based awards | 1,061 | $ 7 | 1,054 | ||||||||||||||||
Issuance of ordinary shares to the former chief financial officer (Shares) | 26,738 | ||||||||||||||||||
Issuance of ordinary shares to the former chief financial officer | $ 2 | (2) | |||||||||||||||||
Issuance of ordinary shares to the Trust Holdcos (Shares) | 4,765,903 | 4,765,903 | |||||||||||||||||
Issuance of ordinary shares to the Trust Holdcos | $ 238 | $ (238) | |||||||||||||||||
Issuance of Class A ordinary shares upon the IPO (Shares) | 3,381,000 | ||||||||||||||||||
Issuance of Class A ordinary shares upon the IPO | 33,438 | 33,269 | $ 169 | ||||||||||||||||
Re-designating ordinary shares (Shares) | 8,119,882 | 7,755,689 | (8,119,882) | (7,755,689) | |||||||||||||||
Re-designating ordinary shares | $ 406 | $ 388 | $ (406) | $ (388) | |||||||||||||||
Conversion of Series (Shares) | (1,571,043) | (15,857,223) | 15,857,223 | 3,999,709 | 1,571,043 | ||||||||||||||
Conversion of Series | $ 27,593 | $ (78) | $ (794) | $ 27,394 | $ 794 | $ 199 | $ 78 | ||||||||||||
Ending Balance (Shares) at Dec. 31, 2022 | 0 | 4,624,039 | 0 | 31,357,814 | 9,326,732 | ||||||||||||||
Ending Balance at Dec. 31, 2022 | $ 195,165 | $ 0 | $ (231) | $ (81) | $ 0 | $ 109,049 | $ 804 | $ 83,590 | $ 1,568 | $ 466 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Other Comprehensive Income (Loss), Tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income | $ 23,972 | $ 29,257 | $ 37,455 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Allowance for doubtful accounts | 86 | 87 | 11 |
Inventory write-down | 318 | 1,285 | 48 |
Deferred tax | 183 | 131 | 618 |
Share-based compensation | 9,196 | 9,681 | 0 |
Depreciation and amortization | 1,386 | 775 | 227 |
Loss from disposal of property and equipment | 4 | 0 | 17 |
Lease expense to reduce right-of-use assets | 6,400 | 0 | 0 |
Unrealized foreign currency exchange losses (gains) | 2,126 | 2,012 | (1,023) |
Interest expense of capital lease | 198 | 27 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (9,161) | 5,897 | (10,119) |
Inventories | 2,785 | (47,148) | (13,862) |
Prepayments and other current assets | (1,384) | (1,717) | (5,243) |
Accounts payable | 6,619 | 6,309 | 4,141 |
Contract liabilities | (1,689) | 266 | 3,062 |
Income tax payable | (1,530) | 1,315 | 5,921 |
Accrued expenses and other current liabilities | 14,356 | 208 | 12,004 |
Operating lease liabilities | (4,011) | 0 | 0 |
Net cash provided by operating activities | 49,656 | 8,556 | 33,284 |
Investing activities: | |||
Cash paid for purchase of property and equipment | (709) | (1,825) | (654) |
Cash received from disposal of property and equipment | 0 | 0 | 7 |
Net cash used in investing activities | (709) | (1,825) | (647) |
Financing activities: | |||
Proceeds from issuance of Series E Preferred Shares | 25,000 | ||
Repayment of finance lease obligations | (3,624) | (2,526) | (307) |
Repurchase of vested share-based awards | (2,435) | ||
Repayment of bank loans | (312) | (430) | (96) |
Repayment of borrowings from a related party | (89) | ||
Proceeds from bank loans | 1,199 | ||
Proceeds from prepaid consideration of restricted shares | 1,578 | ||
Proceeds from initial public offering, net of IPO costs | 34,245 | ||
Net cash provided by (used in) financing activities | 31,887 | (2,956) | 23,272 |
Effect of foreign currency exchange rate changes on cash and restricted cash | 380 | (2,110) | 735 |
Net increase in cash and restricted cash | 81,214 | 1,665 | 56,644 |
Cash and restricted cash at the beginning of the year | 63,862 | 62,197 | 5,553 |
Cash and restricted cash at the end of the year | 145,076 | 63,862 | 62,197 |
Supplemental information | |||
Interest expense paid | 568 | 309 | 46 |
Income taxes paid | 8,539 | 7,022 | 1,658 |
Non-cash investing and financing activities: | |||
Purchase of property and equipment under finance leases | 2,719 | $ 4,086 | $ 2,930 |
Share based awards attributable to the IPO where no cash payment is required | $ 807 |
Description Of Business And Org
Description Of Business And Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of Business And Organization | 1. DESCRIPTION OF BUSINESS AND ORGANIZATION Description of Business GigaCloud Technology Inc (the “Company”), a limited liability company in the Cayman Islands, with its subsidiaries and consolidated variable interest entities (“VIEs”) (collectively referred to as the “Group”) are principally engaged in large parcel merchandise sales and the provision of ecommerce solutions for small cross-border business owners utilizing the Company’s online platform (“GigaCloud Marketplace”) and warehouses primarily in the United States and Europe. Organization The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries and consolidated VIEs. In 2017 and 2018, the Company entered into Account Control Agreements with its VIEs and their respective nominal shareholders in the United States, Japan, the United Kingdom, Germany and the People’s Republic of China (“China” or “PRC”), respectively, to facilitate operations in these jurisdictions. The functions of the VIEs include operating accounts registered on third-party ecommerce websites to sell merchandise to local individual customers, or providing warehousing and logistic services to users’ registered on GigaCloud Marketplace, by utilizing the Group’s cross-border trading experience, international logistic network and the Company’s own online platform. All of the VIEs’ nominal shareholders are employees of the Group. The Company has funded, through either direct capital contribution or intercompany loans, substantially all of the VIEs’ capital and operation fund. The Company has information right, management right and control right of daily operation of the VIEs. The Account Control Agreements, with the consolidated VIEs and their shareholders, allow the Company to (i) exercise effective control over the consolidated VIEs, (ii) receive substantially all of the economic benefits of the consolidated VIEs, and (iii) have an exclusive option to purchase all or part of the equity interests in the consolidated VIEs when and to the extent permitted by the applicable laws. The Company is regarded as the primary beneficiary of the consolidated VIEs, and the Company treats the VIEs as consolidated entities under U.S. GAAP. The Company has consolidated the financial results of the VIEs in the consolidated financial statements in accordance with U.S. GAAP. However, the control over the VIEs through contractual arrangements may not be as effective as direct ownership. In addition, uncertainties exist as to whether the Company’s operation of the business in these jurisdictions through the consolidated VIEs would be found not in compliance with existing or future respective local laws. The equity interests of the VIEs are legally held by their nominee shareholders. Through the Account Control Agreements, which were entered into among the Company, the VIEs and the nominee shareholders of the VIEs, the nominee shareholders of the VIEs have granted all their legal rights including voting rights and disposition rights of their equity interests in the VIEs to the Company. The nominee shareholders of the VIEs do not participate significantly in income and loss and do not have the power to direct the activities of the VIEs that most significantly impact their economic performance. Accordingly, the VIEs are considered variable interest entities. Under the terms of the Account Control Agreements, the VIEs’ nominee shareholders have no rights to the net assets nor have the obligations to fund the deficit, and such rights and obligations have been vested to the Company. All of the deficit (net liabilities) and net loss of the VIEs are attributed to the Company. The principal terms of the Account Control Agreements are as follows: 1) Account Management The Company shall be entitled information right, management right and control right of daily operation of the VIEs, especially with respect to all the bank accounts and operating accounts with relevant e-commerce The VIEs and their shareholders shall act in good faith under instructions of the Company and shall not damage the control and management of the Company or affect its financial results and consolidation of such result. 2) Sale and Purchase of Equity Interest The Company has irrevocable and exclusive right to purchase the equity interests in the VIEs held by each shareholder of such VIEs, once or at multiple times at any time in part or in whole, at the Company’s sole discretion. Except for the Company and its designee(s), no other person shall be entitled to such option or other rights to purchase the equity interests in the VIEs held by the shareholders of the VIEs. The purchase price shall be the minimum price permitted by the local applicable laws. Pursuant to the Account Control Agreements, the VIEs and their shareholders shall not terminate the control agreement unilaterally in any event unless otherwise required by applicable laws. 3) Power of Attorney The Company has sole and exclusive power of attorney to act on behalf of each shareholder of the VIEs with respect to all rights and matters concerning all equity interest held by such shareholder including exercising all of the shareholder’s rights and voting rights; deciding the sale, transfer, pledge or disposition of the shares of the VIEs; representing the shareholder to execute any resolutions and minutes as a shareholder (and director) of the VIEs; approving the amendments to the articles of association without written consent of such shareholder; approving any change of the share capital of the VIEs; appoint directors to the VIEs at the discretion of the Company. Each shareholder of the VIEs waives all rights with respect to the equity interests in the VIEs held by him/her and shall not exercise such rights by himself/herself. 4) Equity Pledge The VIEs’ shareholders agree to pledge all the equity interests to the Company as security for performance of the contract obligations under the Account Control Agreements. The VIEs and their shareholders shall complete all necessary registration and/or filings relating to the equity pledges required by the applicable laws in one month after the execution of the Account Control Agreements. During the term of this Account Control Agreement, the VIEs and their shareholders shall deliver the share certificate or the like to the Company’s escrow within one week after the execution of the Account Control Agreements. In the event of the occurrence of any change of the share capital or the entrusted shareholding of the VIEs, the VIEs and their shareholders shall update the registration and/or filings relating to the equity pledges required by the applicable laws and deliver the updated share certificate or the like to the Company’s escrow. 5) Effective Date and Term The Account Control Agreements became effective upon execution by the parties, and remain effective until all equity interests held by the VIEs’ shareholders have been transferred or assigned to the Company in accordance with the Account Control Agreements. The Company relies on the Account Control Agreements to operate and control VIEs. All of the Account Control Agreements are governed by local laws and provide for the resolution of disputes through arbitration under local laws. Accordingly, these agreements would be interpreted in accordance with local laws and any disputes would be resolved in accordance with local legal procedures. Uncertainties in the local legal system could limit the Company’s ability to enforce these contractual arrangements. In the event that the Company is unable to enforce these contractual arrangements, or if the Company suffers significant time delays or other obstacles in the process of enforcing these Account Control Agreements, it would be difficult to exert effective control over VIEs, and the Company’s ability to conduct its business and the results of operations and financial condition may be materially and adversely affected. In the opinion of management, the ownership structures of the Company and its VIEs, do not violate any applicable local laws, regulations, or rules currently in effect; the agreements among the Company, each of the VIEs and its shareholders, governed by local laws, as described above, are valid, binding and enforceable in accordance with their terms and applicable local laws, rules, and regulations currently in effect, and do not violate any applicable local laws, regulations, or rules currently in effect. However, there are substantial uncertainties regarding the interpretation and application of current and future local laws and regulations. Accordingly, if the local government finds that the contractual arrangements do not comply with its restrictions on foreign ownership of businesses, or if the local government otherwise finds that the Company and the VIEs are in violation of local laws or regulations or lack the necessary permits or licenses to operate the Company’s business, the relevant regulatory authorities would have broad discretion in dealing with such violations, including: • revoking the business and operating licenses of the Company; • discontinuing or restricting the operations; • imposing fines or confiscating any of VIEs’ income that they deem to have been obtained through illegal operations; • imposing conditions or requirements with which the Group’s subsidiaries or the VIEs may not be able to comply; • requiring the Company to restructure the ownership structure or operations, including terminating the contractual arrangements with the VIEs; • restricting or prohibiting the Company’s use of the proceeds of overseas offering to finance the business and operations in these jurisdictions; or • taking other regulatory or enforcement actions that could be harmful to the business. If the imposition of any of these penalties or requirement to restructure the Company’s corporate structure causes it to lose the rights to direct the activities of the VIEs or the Company’s right to receive its economic benefits, the Company would no longer be able to consolidate the financial results of the VIEs in its consolidated financial statements. In the opinion of management, the likelihood of deconsolidation of the VIEs is remote based on current facts and circumstances. In February 2021, the Company terminated the Account Control Agreement with one of its consolidated VIEs, Suzhou Dajianyun Transport Co., Ltd. (“Suzhou Dajianyun”). In connection with the termination of the Account Control Agreement, the Company, through its wholly-owned subsidiary GigaCloud Technology (Suzhou) Co., Ltd. (“Gigacloud Suzhou”, formerly known as Oriental Standard Network Technology (Suzhou) Co., Ltd.), acquir of the equity interest in Suzhou Dajianyun which then became the Company’s indirect wholly-owned subsidiary. The Company’s involvement with the VIEs under the Account Control Agreements affected the Company’s consolidated financial position, results of operations and cash flows as indicated below. The following consolidated assets and liabilities information of the Group’s VIEs as of December 31, 2021 and 2022, and consolidated revenues, net loss and cash flow information for the years ended December 31, 2020, 2021 and 2022 have been included in the accompanying consolidated financial statements. December 31, 2021 2022 US$ US$ Cash 3,542 5,367 Accounts receivable, net 2,241 2,959 Inventories 9,933 9,551 Amounts due from related parties* 1,271 1,249 Prepayments and other current assets 2,386 1,277 Total current assets 19,373 20,403 Property and equipment, net 660 548 Operating lease right-of-use — 5,398 Other non-current — 890 Total assets 20,033 27,239 Accounts payable 1,433 4,185 Contract liabilities 394 385 Current operating lease liabilities — 1,864 Income tax payable 78 280 Accrued expenses and other current liabilities 341 442 Amounts due to related parties* 19,605 24,172 Total current liabilities 21,851 31,328 Operating lease liabilities, non-current — 3,322 Total liabilities 21,851 34,650 * As of December 31, 2021 and 2022, amounts due to and due from related parties represent the loans, receivables and payables that the VIEs had with the Company’s consolidated subsidiaries, which were eliminated in the Company’s consolidated financial statements. Year ended December 31, 2020 2021 2022 US$ US$ US$ Revenues 35,493 47,683 70,635 Net income (loss) 514 751 (5,955 ) Net cash provided by operating activities 2,560 69 1,410 Net cash provided by (used in) investing activities (355 ) (237 ) 53 Net cash provided by (used in) financing activities 68 (68 ) — Net increase (decrease) in cash 2,352 (628 ) 1,825 Cash at the beginning of the year 1,818 4,170 3,542 Cash at the end of the year 4,170 3,542 5,367 In accordance with VIE Agreements, the Company has the power to direct the activities of the VIEs. Therefore, the Company considers that there are no assets in the VIEs that can be used only to settle obligations of the VIEs. The creditors of VIEs do not have recourse to the general credit of the Company and its wholly-owned subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. (b) Share Consolidation On July 5, 2022, the Company effected a 1-for-500 (c) Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs for which the Company is the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A consolidated affiliated entity is an entity in which the Company, or its subsidiary, through contractual arrangements, exercises effective control over the activities that most impact the economic performance, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All intercompany transactions and balances among the Company, its wholly-owned subsidiaries and the VIEs have been eliminated upon consolidation. (d) Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet dates, and the reported revenues and expenses during the reported periods. Significant accounting estimates include, but not limited to, the valuation and recognition of share-based compensation arrangements, inventory reserve for excess and obsolete inventories. Incremental borrowing rate of leases, and the length of lease terms which vary by country and often include renewal options, are important factor in determining the appropriate accounting for leases including the initial classification of the lease as finance (referred to as “capital leases” prior to the adoption of Accounting Standards Update (“ASU”) No. 2016-02, Leases ( e The Group’s reporting currency is U.S. dollars (“US$”). The functional currency of the Group’s entities incorporated in Cayman Islands, the U.S. and Hong Kong is US$. The Group’s PRC subsidiaries and consolidated VIEs determined their functional currency to be Renminbi (“RMB”). The Group’s entities incorporated in Japan, Germany, the United Kingdom and other jurisdictions use their respective local currencies as their functional currencies. The determination of the respective functional currency is based on the criteria of Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded as “Foreign currency exchange gains, net” in the consolidated statements of comprehensive income. The Group entities with functional currencies other than the RMB, US$, including Great Britain Pound (“GBP”), Japanese Yuan (“JPY”), Hong Kong Dollar (“HK$”), Euro (“EUR”) and Vietnamese Dong (“VND”), translate their operating results and financial position into the US$, the Group’s reporting currency. Assets and liabilities denominated in foreign currencies are translated into US$ using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into US$ at the appropriate historical rates. Revenues, expenses, gains and losses are translated into US$ using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in accumulated other comprehensive income as a component of shareholders’ equity. ( f In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income ( g Cash consists of deposits at financial institutions. Cash is deposited into financial institutions at the locations listed below: December 31, 2021 2022 US$ US$ Financial institutions in Cayman Islands - Denominated in the US$ 20,419 — Total cash balances held at Cayman financial institutions 20,419 — Financial institutions in the United States - Denominated in the US$ 12,480 47,028 - Denominated in the GBP — 56 Total cash balances held at United States financial institutions 12,480 47,084 Financial institutions in Hong Kong - Denominated in the US$ 18,175 40,001 - Denominated in the EUR 3,038 734 - Denominated in the GBP 3,014 1,635 - Denominated in the JPY 113 316 - Denominated in the HK$ — 67 Total cash balances held at Hong Kong financial institutions 24,340 42,753 Financial institutions in Japan - Denominated in the JPY 1,718 6,640 - Denominated in the US$ 234 1,405 Total cash balances held at Japan financial institutions 1,952 8,045 Financial institutions in the United Kingdom - Denominated in the GBP 335 104 - Denominated in the US$ 35 14 - Denominated in the EUR — 3,158 Total cash balances held at the United Kingdom financial institutions 370 3,276 Financial institutions in the mainland of the PRC - Denominated in the RMB 2,071 1,616 - Denominated in the US$ 509 31,961 - Denominated in the EUR — 1,066 - Denominated in the GBP — 6,870 Total cash balances held at the PRC financial institutions 2,580 41,513 Financial institutions in German y December 31, 2021 2022 US$ US$ - Denominated in the EUR 742 816 - Denominated in the US$ 235 — - Denominated in the GBP 1 — Total cash balances held at Germany financial institutions 978 816 Financial institutions in Vietnam - Denominated in the VND 1 44 - Denominated in the US$ 78 — Total cash balances held at Vietnam financial institutions 79 44 Total cash held at financial institutions 63,198 143,531 ( h Cash that is restricted for withdrawal or use is reported separately on the face of the consolidated balance sheets. The Group’s restricted cash represents security deposits held in designated bank accounts for issuance of letters of guarantee. As of December 31, 2021 and 2022, the restricted cash, held by the Group at the United States financial institutions and denominated in the US$, amounted to US$664 and US$1,545, respectively. A reconciliation of cash and restricted cash in the consolidated balance sheets to the amounts in the consolidated statement of cash flows is as follows: December 31, 2021 2022 US$ US$ Cash 63,198 143,531 Restricted cash 664 1,545 Total cash and restricted cash shown in the consolidated statements of cash flows 63,862 145,076 ( i The timing of revenue recognition, billings and cash collections result in accounts receivable and contract liabilities. A contract liability is recognized when the Group has an obligation to transfer goods or services to a customer for which the Group has received consideration from the customer, or for which an amount of consideration is due from the customer. Accounts receivable are recognized in the period when the Group has transferred products or provided services to its customers and when its right to consideration is unconditional. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statement of cash flows. The Group maintains a general and specific allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. Accounts receivable balances with large creditworthy customers are reviewed by management individually for collectability. All other balances are reviewed on a pooled basis. A percentage of general allowance is applied to the balances of accounts receivable in each aging category, excluding those which are assessed individually for collectability. Management considers various factors, including historical loss experience, current market conditions, the financial condition of its debtors, any receivables in dispute, the aging of receivables and current payment patterns of its debtors, in establishing the required allowance. An allowance for doubtful accounts is made and recorded into general and administrative expenses. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance ( j Inventories, consisting of products available for sale, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the first-in, ( k Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows: Office and other equipment 3-5 years Vehicles 10 years Logistics, warehouse and other heavy equipment 15 years When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred. ( l In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 The Group categorizes leases at their inception as either operating or finance leases. Lease agreements mainly cover office space, warehouses, storage rack and other heavy equipment used in the warehouses. Most of these leases are operating leases; however, certain warehouse storage shelves from a third-party lessor are leased under finance leases. Leased assets pursuant to operating leases are included in operating lease right-of-use right-of-use The adoption of ASC 842 does not have impact to the retained earnings of the Group as of January 1, 2022. The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. December 31, Adjustments due to adoption of January 1, 2021 ASC 842 2022 US$ US$ US$ ASSETS Prepayments and other current assets 9,080 (2,344 ) (a) 6,736 Operating lease right-of-use — 150,568 (b) 150,568 LIABILITIES Accrued expenses and other current liabilities 19,721 (4 ) (c) 19,717 Current operating lease liabilities — 28,612 (d) 28,612 Operating lease liabilities, non-current — 119,616 (d) 119,616 Capital lease obligations 2,345 (2,345 ) (e) — Finance lease obligations, non-current — 2,345 (e) 2,345 (a) Represents the prepaid rent reclassified to operating lease right-of-use (b) Represents the result of discounting operating lease payments, the reclassification of prepaid rent and deferred rent accrual. (c) Represents the deferred rent accrual reclassified to operating lease right-of-use (d) Represents the recognition of operating lease liabilities, current and non-current. (e) The account caption of “Capital lease obligations” in non-current liabilities was changed to “Finance lease obligations, non-current” ( m Long-lived assets with finite useful lives are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the 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, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment of long-lived assets w as ( n The Group recognizes revenues when the Group satisfies a performance obligation by transferring a promised good or service (that is, an asset) to a customer. An asset is transferred when the customer obtains control of that asset. The Group evaluates whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. When the Group is a principal, that the Group obtains control of the specified goods or services before they are transferred to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When the Group is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods or services, the revenues should be recognized in the net amount for the amount of commission which the Group earns in exchange for arranging for the specified goods or services to be provided by other parties. Revenues are recorded net of value-added taxes. The Group focuses on selling large parcel merchandise to various distributors and individual customers, as well as the provision of ecommerce solutions on its own platform (“GigaCloud Marketplace”), with which the Group could democratize access and distribution globally to manufacturers (“Sellers”) and online resellers (“Buyers”) without borders. The Group’s revenues include revenues from product sales and services. Product sales include sales on the GigaCloud Marketplace (“GigaCloud 1P”) and sales to and through third-party ecommerce websites (“Off-platform GigaCloud 1P The Group sells its merchandise to its customers, who are the Buyers of the GigaCloud Marketplace. The Group recognizes revenues net of discounts and return allowances. Such revenue is recognized at the point in time when the control of the merchandise is transferred to the Buyers, which generally occurs upon the shipment out of the Group’s warehouse to the destination designated by the Buyers. Off-platform There are two business lines subject to Off-platform Product sales to B The Group sells its merchandise to third-party ecommerce websites, who normally designate carrier companies to pick up merchandise from the Group’s warehouses. The Group recognizes revenue net of discounts and return allowances. Such revenue is recognized at the point in time when the third-party ecommerce websites obtain control of the merchandise, which is the shipment out of the Group’s warehouse and pick-up Product sales to C The Group sells its merchandise to individual customers through third-party ecommerce websites. The Group recognizes revenue when the control is transferred to the individual customers at an amount that reflects the consideration to which the Group expects to be entitled in exchange of that merchandise. Revenue is recognized at the point in time when the individual customers take possession of merchandise, which is when a merchandise is delivered to the customers. Expenses incurred for product sales made through these websites, which are considered as platform commission, are recorded as selling and marketing expenses. Regarding GigaCloud 1P and Off-platform GigaCloud 3P The Group enters contracts with customers, which often include promises to transfer multiple services. For these contracts, the Group accounts for individual performance obligations separately if they are capable of being distinct and distinct within the context of the contract. Determining whether services are considered distinct performance obligations may require significant judgment. Judgment is also required to determine the stand-alone selling price, for each distinct performance obligation. The Group charges commission fees for sales transaction consummated on GigaCloud Marketplace. The Group acts as an agent, as it does not take control of the merchandise provided by the Sellers at any time during the transactions and does not have latitude over pricing of the merchandise. The Group sets a percentage of the transacted product value as commission fees initially when a transaction is completed; and, for customers whose monthly transaction value reaches certain specified hurdles, they would receive a varying level of credits that is applied retrospectively depending on the tier they have reached. Revenue of commission fee is recognized upon successful sales of the merchandise by the Sellers when the Buyers take ownership of the merchandise and could control the merchandise at their wish. As the Group resets and confirms the credit and hence the effective rate of commission fee for each Seller at the end of each calendar month, no estimation is required beyond the end of each month. The Group also offers comprehensive supply chain solutions for Sellers. The Group provides services to help the Sellers to ship the merchandise from the Sellers’ manufacturing plant to the Group’s oversea warehouses, utilizing the Group’s extensive shipping network consisting of ocean transportation providers, custom declaration agents, and domestic shipping companies. Further, the Group also provide warehousing service to the Sellers and Buyers, whoever have the ownership of the merchandise, in connection with the storage of merchandise in the Group’s warehouses, as well as the last-mile delivery services from the Group’s warehouses to domestic destinations designated by the Buyers. Revenues resulting from these services are recognized over time, as the Group performs the services in the contracts with continuous transfer of control to the Sellers or Buyers, and they could simultaneously receive and consume the benefits of the Group’s performance as it occurs. The Group is acting as a principal in providing warehousing service, ocean transportation service and last-mile delivery services and recognizes revenue on a gross basis, as the Group determines the price and selects carriers on its own discretion. The Sellers and Buyers could choose one or several of the above-mentioned services on GigaCloud Marketplace. Therefore, there may be multiple performance obligations included in one transaction. Revenue is allocated to each performance obligation based on its standalone selling price. The Group generally determines standalone selling prices based on observable prices. If the standalone selling price is not observable through past transactions, the Group estimates the standalone selling price based on multiple factors, including but not limited to management approved price list or cost-plus margin analysis. ( o Cost of product sales primarily consists of the purchase price of merchandise, shipping and handling costs for self-owned merchandise, warehouse rental expenses excluding the portion allocated to cost of service revenue, packaging fees and personnel related costs. Cost of services primarily consists of the domestic delivery cost, a portion of warehouse rental expenses, as well as the costs associated with the operation of the GigaCloud Marketplace. The shipping and handling costs primarily consist of those costs incurred during the process of delivery in North America and markets in other regions, including the expenses attributable to shipment and handling activities, when the Group delivers a good to a customer. ( p Selling and marketing expenses mainly consist of platform service fee charged by third-party ecommerce websites arising from Product sales to C of Off-platform ecommerce, promotion expenses, payroll and related expenses for personnel engaged in selling and marketing activities and rental and depreciation expenses relating to facilities and equipment used by those employees. ( q Advertising expenses, including advertisements through various forms of media and marketing and promotional activities, are included in “selling and marketing expenses” in the consolidated statements of comprehensive income when incurred. Total advertising expenses incurred were US$1,075, US$1,851 and US$1,530 for the years ended December 31, 2020, 2021 and 2022, respectively. ( r General and administrative expenses mainly consist of share-based compensation, payroll and related costs for employees involved in general corporate functions, expenses associated with the use of facilities and equipment by these employees, such as rental and depreciation expenses, professional fees and other general corporate expenses. ( s Government grants are recognized when there is reasonable assurance that the Group will comply with the conditions attached to it and the grants will be received. The Group received government grants to support growth and competitiveness in the internet industry. No future related costs are stipulated. The government grants will be recognized in the Group’s consolidated statement of comprehensive income when the grant becomes receivable. Government grants of ( t The Group applies ASC 718 (“ASC 718”) Compensation—Stock Compensation to account for its share-based payments. In accordance with ASC 718, the Group determines whether an award should be classified and accounted for as a liability award or an equity award. Share-based awards in the form of share options, restricted shares and ordinary shares are equity-classified awards and measured at the grant date fair value of the awards. Compensation expenses are recognized using the straight-line basis over the requisite service period, if and when the Group considers that it is probable that the performance condition will be achieved. When no future services are required to be performed in exchange for an award, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. Share-based awards in the form of restricted share units are liability-classified awards, as the awards are share-settleable for a fixed monetary amount. The Company recognizes compensation cost for an award with only service condition that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant date value of such award that is vested at that date. The Group elects to recognize the effect of forfeitures in compensation cost when they occur. To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards is reversed. A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. “Not probable-to-probable” modification, which refers to the modification of the award that is not expected to vest under the original vest condition at the date of the modification, the compensation cost should be recognized equal to the modified award’s fair value at the date of the modification. “Probable-to-Probable” modification, which refers to the modification that does not change the expectation that the awards will ultimately vest, the cumulative amount of compensation cost that should be recognized is the original grant date fair value of the award plus any incremental fair value resulting from the modification. Incremental compensation cost shall be measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified. ( u The Company’s subsidiaries and the VIEs in the PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated on the monthly basic compensation of qualified employees at a stated contribution rate of 25.5%. The Group has no further commitments beyond its monthly contribution. Employees in the United States are eligible to participate in one or more of savings plans that provide for periodic contributions by the Group based on plan-specific criteria, such as base pay, level and employee contributions. For the years ended December 31, 2020, 2021 and 2022, the costs and expenses of the obligations to the defined contribution plans amounted to US$1,689, US$1,695 and US$2,610, respectively. ( v The Group accounts for income taxes using the asset and liability method. Current income taxes are provided on the basis of income before income taxes for financial reporting purposes, and 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. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax laws and rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not The Group applies a “more-likely-than-not” “more-likely-than-not” “more-likely-than-not” re-assessed. As disclosed in the Note 1 5 ( w Concentration of customers and suppliers No customers individually represent greater than 10.0% of total revenues of the Group for the years ended December 31, 2020, 2021 and 2022. One customer individually represents greater than 10.0% of total accounts receivable balance of the Group as of December 31, 2021 and three customers individually represents greater than 10.0% of total accounts receivable balance as of December 31, 2022 December 31, 2021 December 31, 2022 proportion of total accounts receivable balance proportion of total accounts receivable balance Customer A 26.6 % 28.3 % Customer B * 14.5 % Customer C * 10.1 % * Less than 10.0% of total accounts receivable balance as of the year end. There of the total purchases of the Group for the years ended December 31, 2020, 2021 and 2022. Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, and accounts receivable. The Group’s investment policy requires cash and restricted cash to be placed with high quality financial institutions and to limit the amount of credit risk from any one institution. The Group regularly evaluates the credit standing of the counterparties or financial institutions. Accounts receivable (Note 3), derived from product sales and provision of services on the Group’s GigaCloud Marketplace, as well as amounts due from third-party payment platforms (Note 5) derived from payment from individual customers collected by third-party payment platforms on behalf of the Group, are exposed to credit risk. The assessment of the counter parties’ creditworthiness is primarily based on past history of making payments when due and current ability to pay, taking into account information specific to the counter parties as well as pertaining to the economic environment in which the counter parties operate. Based on this analysis, the Group determines what credit terms, if any, to offer to each counter party individually. If the assessment indicates a likelihood of collection risk, the Group will not deliver the services or sell the products to or through the counter parties or require the counter parties to pay cash in time to secure payment. Interest rate risk The Group’s borrowings bear interests at fixed rates. If the Group were to renew these borrowings, the Group might be subject to interest rate risk. Foreign currency exchange rate risk The Group is exposed to risks from foreign currency exchange rate fluctuations on the translation of foreign operations into U.S. dollars and on the purchase of goods by these foreign operations that are not denominated in their local currencies. Changes in currency rates resulted in gains (losses) of US$1.0 million, US$ (2.0) (4.9) ( x Basic earnings per share is computed by dividing net income attributable to ordinary shareholders, considering the accretions to redemption value of the preferred shares, by the weighted average number of ordinary shares outstanding during the year using the two-class two-class The Company’s preferred shares are participating securities as they participate in undistributed earnings on an as-converted Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the conversion of the preferred shares using the as-converted ( y The Group’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Group’s chief executive officer and management personnel do not segregate the Group’s business by revenue steam or geography. Management has determined that the Group has one operating segment. ( z In accordance with the PRC Company Laws, the paid-in In addition, in accordance with the PRC Company Laws, the Group’s PRC subsidiaries and VIEs must make appropriations from their after-tax non-distributable after-tax The statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective companies. These reserves are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except for liquidation. No appropriation to the reserve fund was made by the PRC subsidiaries and VIEs, as these PRC companies had accumulated losses as determined under PRC GAAP for the years ended December 31, 2020, 2021 and 2022. (a a In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features and eliminates some of the conditions for equity classification in ASC 815-40 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of share settlement for instruments that may be settled in cash or shares. The Group adopted this standard on January 1, 2022, and such adoption did not impact on the consolidated financial statements. The Group adopted ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, on January 1, 2022. This ASU requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model. The adoption of this standard did not have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, and issued subsequent amendments to the initial guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02, collectivel |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | 3. ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consisted of the following: December 31, 2021 2022 US$ US$ Accounts receivable 18,187 27,379 Allowance for doubtful accounts (151 ) (237 ) Accounts Receivable, net 18,036 27,142 The movement of the allowance for doubtful accounts is as follows: Year ended December 31, 2020 2021 2022 US$ US$ US$ Balance as of the beginning of the year (53 ) (64 ) (151 ) Additions charged to bad debt expense (11 ) (87 ) (86 ) Balance as of the end of the year (64 ) (151 ) (237 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Inventories | 4. INVENTORIES Inventories consisted of the following: December 31, 2021 2022 US$ US$ Products available for sale 56,444 59,829 Goods in transit 24,997 18,509 Inventories 81,441 78,338 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments And Other Current Assets [Abstract] | |
Prepayments And Other Current Assets | 5. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets are consisted of the following: December 31, 2021 2022 US$ US$ Value-added taxes recoverable 564 201 Advances to suppliers 1,407 1,067 Amounts due from third-party payment platforms 3,165 3,814 Deposits 29 29 Prepaid expenses 3,617 1,405 Others 298 1,050 Prepayments and Other Current Assets 9,080 7,566 The deposits recorded in the prepayments and other current assets represent the deposits made to lessors for leasing warehouses and equipment, which are receivable within a year. The deposits of US$3,211 and US$3,182 as of December 31, 2021 and 2022, respectively, that are expected to be received beyond a year are recorded in the non-current |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property And Equipment, Net | 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net, as of December 31, 2021 and 2022 consisted of the following: December 31, 2021 2022 US$ US$ Office and other equipment 1,350 1,755 Vehicles 218 263 Logistics, warehouse and other heavy equipment 10,739 13,630 Property and Equipment 12,307 15,648 Less: Accumulated depreciation (1,232 ) (2,595 ) Property and Equipment, net 11,075 13,053 The carrying amounts of the Group’s property and equipment, net, acquired under finance December 31, 2021 2022 US$ US$ Logistics, warehouse and other heavy equipment 7,296 10,015 Property and Equipment 7,296 10,015 Less: Accumulated depreciation (273 ) (926 ) Property and Equipment, net 7,023 9,089 Depreciation expenses on property and equipment were allocated to the following expense items: Year ended December 31, 2020 2021 2022 US$ US$ US$ Cost of revenues 188 573 970 General and administrative expenses 39 202 416 Total depreciation expenses 227 775 1,386 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | 7. BORROWINGS December 31, 2021 2022 US$ US$ Unsecured 582 207 Long-term borrowings 582 207 Current portion of long-term borrowings 345 207 Long-term borrowings, excluding current portion 237 — In June 2020, the Group borrowed a six-year In July and October of 2020, the Group borrowed two three-year loans from MIZUHO Bank with the principal of US$375 and US$756, respectively. The loans bear no interest rate and are guaranteed by the chairman of the board of Oriental Standard Japan Co., Ltd. For the years ended December 31, 2021 and 2022, the Group repaid bank loans in the amount of US$430 and US$312, respectively. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable | 8. ACCOUNTS PAYABLE December 31, 2021 2022 US$ US$ Vendor payable 7,395 10,472 Shipping charges payable and others 17,745 21,101 Accounts Payable 25,140 31,573 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2021 2022 US$ US$ Finance lease obligations , current 2,343 2,916 Salary and welfare payables 3,070 3,957 Refundable deposits on GigaCloud Marketplace* 9,230 19,772 Professional fee accruals 900 983 Sales refund liability 1,417 1,532 Obligations under the remorse protection program 437 307 Prepaid consideration of restricted shares** — 517 Liability classified share-based compensation — 110 Other payables 2,324 6,968 Accrued Expenses and Other Current Liabilities 19,721 37,062 * Refundable deposits on GigaCloud Marketplace represent the balance of deposits from Buyers and Sellers which could be withdrawn or used for their future purchase of the Group’s services or merchandise on GigaCloud Marketplace. ** Pursuant to the 2017 Share Incentive Plan, in February 2022, the board of directors resolved to grant 210,898 restricted shares to its employees and non-employee service providers. The amount of US$1,578 prepayment of consideration that received by the Group before cliff vesting of such restricted shares was initially recorded in accrued expenses and other current liabilities. During the year ended December 31, 2022 and with the consummation of the initial public offering (“IPO”), |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 10. LEASES The Group leases office space, warehouse and equipment. Most of these leases are operating leases, the Group considers various factors such as market conditions and the terms of any renewal options that may exist to determine whether it will renew or replace the lease. In the event the Group is reasonably certain to exercise the option to extend a lease, the Group will include the extended terms in the operating lease right-of-use The gross amounts of assets and liabilities related to both operating and finance leases were as follows: Balance Sheet Caption December 31, 2022 US$ Assets: Operating lease right-of-use Operating lease right-of-use 144,168 Finance lease right-of-use Property and equipment, net 9,089 Total right-of-use 153,257 Balance Sheet Caption December 31, 2022 US$ Liabilities: Current: Operating lease liabilities Current operating lease liabilities (27,653 ) Finance lease liabilities Accrued expenses and other current liabilities (2,916 ) Non-current: Operating lease liabilities Operating lease liabilities, non-current (116,564 ) Finance lease liabilities Finance lease obligations, non-current (867 ) Total lease liabilities (148,000 ) The components of lease cost were as follows: Year ended December 31, 2022 US$ Operating lease cost 29,564 Finance lease cost Amortization of right-of-use 653 Interest on lease liabilities 557 Short-term lease costs 307 Total 31,081 Lease terms and discount rates are as follows: December 31, 2022 Weighted average remaining lease term (years): Operating leases 6.05 Finance leases 1.21 Weighted average discount rate: Operating leases 1.36 % Finance leases 11.46 % Future minimum lease payments as of December 31, 2022, including rental payments for lease renewal options the Group is reasonably certain to exercise were as follows: Operating leases Finance leases US$ US$ 2023 29,441 3,172 2024 29,543 894 2025 26,466 — 2026 22,867 — 2027 16,673 — 2028 and thereafter 25,713 — Total lease payments 150,703 4,066 Less: imputed interest (6,486 ) (283 ) Present value of lease liabilities 144,217 3,783 Supplemental cash flow information related to leases was as follows: Year ended December 31, 2022 US$ Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 27,175 Operating cash flows from finance leases 557 Financing cash flows from finance leases 3,624 Right-of-use a Operating leases 24,270 Finance leases 2,719 a. This supplemental non-cash disclosure for right of use assets obtained in exchange for new lease liabilities refers to an increase in lease liabilities associated with obtaining new right of use assets. The approximate future minimum lease payments under operating leases as of December 31, 2021 follow: Year ended December 31, 2021 US$ 2022 31,054 2023 28,101 2024 24,543 2025 19,421 2026 14,914 2027 8,353 2028 2,637 The Group’s capital lease obligations as of December 31, 2021 are summarized as follows: December 31, 2021 Present value of the Total minimum lease payments US$ US$ Within 1 year 2,343 2,724 After 1 year but within 2 years 2,016 2,154 After 2 years 329 336 4,688 5,214 Less: total future interest expense (526 ) Present value of lease obligations 4,688 Including: Current portion 2,343 Non-current 2,345 |
Preferred Shares
Preferred Shares | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Preferred Shares | 11. PREFERRED SHARES Series A Preferred Shares On September 1, 2006, DCM IV, L.P. (“DCM IV”), DCM Affiliates Fund IV, L.P. (“DCM IV Affiliates”, together with DCM IV are referred to as “DCM”) and DT Ventures China Fund II, L.P. (“DT”) lent loans with an aggregate amount of US$600 to the Company. The loans assumed an interest rate of 7.04% per annum. On November 23, 2006, DCM IV, DCM IV Affiliates and DT respectively subscribed 83,477 shares, 2,123 shares and 36,400 shares of Series A Convertible Preferred Shares (in aggregate of 122,000 shares, “Series A Preferred Shares”), at US$50 per share with total cash consideration of US$6,100. On the same day, DCM IV, DCM IV Affiliates and DT converted the loans and accrued interest, with total amount of US$610, into 8,322 shares, 211 shares and 3,657 shares of Series A Preferred Shares, respectively, (12,190 shares in aggregate), at US$50 per share. Series B Preferred Shares On February 25, 2009, DCM and DT lent loans with an aggregate amount of US$2,500 to the Company. The loans did not bear an interest rate. On February 28, 2013, DCM IV, DCM IV Affiliates and DT respectively subscribed to 4,462,264, 113,478 and 1,708,431 of Series B Convertible Preferred Shares (in aggregate of 6,284,173 shares, “Series B Preferred Shares”), at US$0.32 per share with total consideration of US$2,000. On the same day, DCM IV, DCM IV Affiliates and DT converted the loans with total amount of US$2,500 into 5,373,699 shares, 136,656 shares and 2,344,859 shares of Series B Preferred Shares, respectively, (7,855,214 shares in aggregate) at US$0.32 per share. On February 28, 2013, Larry Lei Wu subscribed 1,571,043 shares of Series B Preferred Shares at US$0.32 per share with total cash consideration of US$500. On February 28, 2013, the Company entered into a share repurchase agreement, pursuant to which the Company repurchased 4,075,522 shares, 103,643 shares and 1,539,677 shares of Series B Preferred Shares from DCM IV, DCM IV Affiliates and DT, respectively, (in aggregate of 5,718,842 shares, “Repurchased Shares”), at a repurchase consideration of one U.S. dollar for each investor. All of these Repurchased Shares were canceled immediately on the same day. The Company considered such repurchase a linked transaction with the subscription of Series B Preferred Shares as mentioned in above. Series C Preferred Shares On August 1, 2014, the Company acquired Comptree International Limited. (“Comptree”) by issuing 2,905,802 shares of ordinary shares to FireDragon Holdings Inc. (“FireDragon”), 964,981 ordinary shares to DCM IV, 24,540 ordinary shares to DCM IV Affiliates and 4,358,702 Series C convertible Preferred Shares (“Series C Preferred Shares”) to DT eCommerce Investment Limited (“DT eCommerce”) in exchange for 100% shares of interests in Comptree held by FireDragon and DT eCommerce, for the purpose of the Group’s business expansion into the United States. FireDragon was owned by the founder of Comptree. DT eCommerce was under common control of DT. Based on the mutual understanding of all parties, 794,822 shares of ordinary shares issued to FireDragon was shares granted to Lianya Pan for his continuing service to the Group, who was the previous chief executive officer of Comptree and sole shareholder of FireDragon. The remaining ordinary shares issued to FireDragon and Series C Preferred Shares issued to DT eCommerce were considered as the acquisition consideration of Comptree. Regarding the common shares and Series C Preferred Shares issued as mentioned above, the Company measured their fair value as of the acquisition date. Fair value is estimated based a discounted cash flow method, as of the valuation date. Series D Preferred Shares On March 27, 2017, Hong Kong Red Star Macalline Universal Home Furnishings Limited (“Red Star”) subscribed 2,943,786 Series D Convertible Preferred Shares (“Series D Preferred Shares”) at US$2.74 per share with total cash consideration of US$8,053. Series E Preferred Shares On November 24, 2020, Honeysuckle Creek Limited (“JD”) and HUA YUAN INTERNATIONAL LIMITED (“HUA YUAN”) respectively subscribed 2,719,802 shares and 1,279,907 Series E Convertible Redeemable Preferred Shares (in aggregate of 3,999,709 shares, “Series E Preferred Shares”), at US$6.25 per share with total cash consideration of US$25,000. The rights, preferences and privileges of the Preferred Shares are as follows: Redemption Rights There are no redemption rights for the Series A, B, C, and D Preferred Shares. The investors of Series E Preferred Shares have a right to require the Company to redeem their investments, at any time and from time to time on or after the date of the earliest to occur of the following (i) the Company fails to complete a qualified IPO within seven years after the closing date; (ii) any material breach by any warrantor of any of their respective representations, warranties, covenants or undertakings under the transaction documents; (iii) any commission of, or participation in, fraudulent act or act of dishonesty by any founder against any company within the Group which has severely harm interests of the Series E shareholders; (iv) loss of control; (v) the termination of employment of Larry Lei Wu with any company within the Group; (vi) the occurrence of non-compliance The redemption price equals to 100% of the Series E Preferred Shares issue price with an 6% compound per annum, plus any declared but unpaid dividends on such Preferred Shares. Conversion Rights At the option of the holders, each Preferred Share, all or any portion of that, may be converted at any time prior to a qualified IPO after the original issue date into ordinary shares at an initial conversion ratio of 1:1 In case the Company shall (a) pay a dividend or make a distribution on its ordinary shares in ordinary shares, (b) subdivide or reclassify its outstanding ordinary shares into a greater number of shares, or (c) combine or reclassify its outstanding ordinary shares into a smaller number of shares, the applicable conversion price in effect immediately prior to such event shall be adjusted so that the holder of the Preferred Shares thereafter converted shall be entitled to receive the number of ordinary shares of the Company which it would have owned or have been entitled to receive after the happening of such event had the Preferred Shares been converted immediately prior to the happening of such event. An adjustment shall become effective immediately after the record date in the case of a dividend or distribution and shall become effective on the effective date in the case of subdivision, combination or reclassification. If any dividend or distribution is not paid or made, the applicable conversion price then in effect shall be appropriately readjusted. The conversion of Preferred Shares may be effected, to the extent permitted by the statute, by any of the following methods: (i) a redesignation of the Preferred Shares being converted; (ii) a repurchase of such Preferred Shares and issue of the relevant number of ordinary shares; or (iii) in other manner as the board of directors may determine (including affirmative vote) and as permitted by the statute. Voting Rights Each Preferred Share has voting rights equivalent to the number of ordinary shares into which such Preferred Shares could be then convertible. Dividend Rights Non-cumulative as-converted Liquidation Preferences In the event of any liquidation, holders of the Preferred Shares shall be entitled to receive, prior and in preference to any distribution or payment shall be made to the holders of any ordinary shares, the liquidation preference amount per share is equal to one hundred percent (100%) of the original issue price on each Preferred Share (adjusted for any share splits, share dividends, combinations, recapitalizations and similar transactions), as the case may be, plus all dividends accrued and unpaid with respect thereto (as adjusted for any share splits, share dividends, combinations, recapitalizations and similar transactions) per Series A to E Preferred Shares, except the Series C, then held by such holder. Liquidation preference is as follows in sequence: Series E Preferred Shares, Series D Preferred Shares, Series B Preferred Shares, Series A Preferred Shares. After distribution or payment of the subscription price in full, of the liquidation preference amount distributable or payable on the Series E Preferred Shares, Series D Preferred Shares, Series B Preferred Shares and Series A Preferred Shares, the remaining assets of the Company available for distribution to members shall be distributed ratably among the holders of outstanding ordinary shares and holders of outstanding Preferred Shares on an as-converted If the Company increases its share capital at a price lower than the price paid by the investors on a per share basis, the investors have a right to require the Company to issue new shares for nil consideration (or nominal consideration) to the investors, so that the total amount paid by the investors divided by the total amount of share capital obtained is equal to the price per share in the new issuance. Drag-along Rights Regarding Series A, B and C Preferred Shares, in the event that (i) at any time after the closing date, the Company receives an offer from any person, who has delivered a good faith written offer to purchase all or any portion of a shareholder’s shares, including without limitation, the beneficial ownership of any shareholder’s shares through the transfer of any of the underlying equity ownership of such shareholder, that if consummated, will result in a deemed liquidation event, and (ii) such offer is approved by the holders of at least seventy-five percent (75%) of the total issued and outstanding Preferred Shares, then the Company and each shareholder agree that: (i) the Company shall send written notice to all existing shareholders within five Regarding Series D and E Preferred Shares, in the event that (i) at any time after the closing date, the Company receives an offer from any person, who has delivered a good faith written offer to purchase all or any portion of a shareholder’s shares, including without limitation, the benefit ownership of any shareholder’s shares through the transfer of any of the underlying equity ownership of such shareholder, that if consummated, will result in a deemed liquidation event, and (ii) such offer is approved by the holders of at least seventy-five percent (75%) of the total issued and outstanding Preferred Shares and the holders of at least fifty-one five If the Drag-along rights are triggered on or prior to the fifth anniversary from the closing date, the Drag-along rights shall not apply unless such the sale results in aggregate proceeds of an agreed amount, of at least US$40,000 for the Series A, B and C Preferred Shares, or US$150,000 for the Series D and E Preferred Shares. The Drag-along rights shall terminate upon a qualified IPO. Given the Company has been listed in August 2022 (see Note 12 for details), the Drag-along rights were terminated accordingly. Right to purchase additional shares On March 27, 2017, the Company entered an Adjustment Agreement (the “VAM Agreement”) with Larry Lei Wu, certain management team members and Red Star, the Series D Preferred Shareholder. The VAM Agreement gives Red Star the option to require (i) the Company to acquire certain ordinary shares and vested stock options from management and Larry Lei Wu at a nominal price of one U.S. dollar and (ii) issue additional Series D Preferred shares to Red Star, also at a nominal price of one U.S. dollar (the “Warrant”), under certain condition when milestones stipulated in the VAM Agreement could not be satisfied. Milestones have been stipulated in the VAM Agreement and the parties agree that no adjustment under this VAM Agreement will be made if: a. the 2017 sales revenue exceeds US$79,200, and the 2018 net profits exceed US$6,300; or b. the Company completes a qualified financing prior to June 30, 2019, for which the pre-money The VAM Agreement also stipulates the adjustment procedures, that the Company and Larry Lei Wu and those management team members shall procure the Company to, promptly furnish to Red Star, prior to July 15, 2019, a written statement setting forth whether there is an adjustment, showing in detail the facts upon which the adjustment is based on (if any) (the “Company’s Notice”) with the 2017 financial statements, the 2018 financial statements, and/or the financing documents relating to the milestones. Red Star shall be entitled to furnish to the Company a written statement (the “Investor’s Notice”) requesting the adjustment before September 30, 2019. This VAM Agreement shall be terminated upon the occurrence of any of the following events: (i) the parties agree to terminate this VAM Agreement; or (ii) the adjustment exemption applies upon the confirmation of Red Star; or (iii) Red Star has not furnished the Investor’s Notice to the Company prior to September 30, 2019. The Company satisfied the milestone of 2017 sales revenue, failed the milestones of 2018 net profits and the failed to complete a qualified financing prior to June 30, 2019. The Company sent a notice to Red Star before July 15, 2019. However, Red Star did not furnish the Investor’s Notice to the Company. Therefore, the Company was not required to perform the adjustment procedures, acquiring any ordinary share and vested options from Larry Lei Wu and the management team or sell additional Series D Preferred Shares to Red Star. The VAM Agreement was terminated on September 30, 2019. The Company classified Series E Preferred Shares as mezzanine equity in the consolidated balance sheets, as they are contingently redeemable upon occurrence of certain events outside of the sole control of the Company. The Company recognized changes in the redemption value immediately as they occur and adjust the carrying value of the Series E Preferred Shares to equal the redemption value at the end of each reporting period, as if it were also the redemption date of the Preferred Shares. The Company classified Series A, B, C and D Preferred Shares as permanent equity according to temporary equity exception in ASC 480-10-S99-3A(3f) The Company evaluated the embedded conversion and redemption options in the series of Preferred Shares to determine if the embedded conversion option require bifurcation and accounting for as a derivative, and concluded that the embedded conversion and redemption options of Preferred Shares did not need to be bifurcated pursuant to ASC 815, Derivatives and Hedging The Company determined that the Warrant granted to Red Star should not be identified as a freestanding instrument, nor should it be bifurcated, as the option could not be separate and apart from Series D Preferred Shares, nor could it be legally detachable and separately exercisable from host contract. Further, the Warrant is not considered as a derivative either, because there is no net settlement available as the Company is not a listed company. Activities of the Series E Preferred Shares for the years ended December 31, 2020, 2021 and 2022 consisted of the following. As disclosed in the Note 12, Series E Preferred Shares were converted to the Company’s Class A ordinary shares upon the completion of the Company’s IPO. Series E Preferred Shares US$ Balance as of January 1, 2020 — Issuance for cash 25,000 Issuance costs — Accretion of Preferred Shares 152 Balance as of December 31, 2020 25,152 Accretion of Preferred Shares 1,500 Balance as of December 31, 2021 26,652 Accretion of Preferred Shares 941 Conversion to Class A ordinary shares (27,593 ) Balance as of December 31, 2022 — |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Ordinary Shares | 12. ORDINARY SHARES As of December 31, 2020, the Company’s authorized ordinary shares were 38,572,025 with par value of US$0.05 per share. The number of ordinary shares issued and outstanding was 9,495,844. On July 11, 2021, the board of directors resolved to approve the exercise of 1,587,086 share options (See Note 13). The number of ordinary shares issued and outstanding was 11,082,930 as of December 31, 2021. In February 2022, the Company issued 26,738 ordinary shares to the Group’s former chief financial officer at the consideration of US$2. The former chief financial officer terminated his service in the Group in January 2022, the ordinary shares were granted as the compensation for his past service to the Group. Fair value of these shares was determined using the income approach and equity allocation method on the issuance date. The share-based compensation , nil were recorded in general and administrative expenses in the consolidated statement of comprehensive income for the year ended December 31, 2020, 2021 and 2022. In July 2021, the Company established Dongsi Tou Tiao Trust and Dongsi Er Tiao Trust, which are collectively referred to as the Equity Incentive Trusts, under their respective trust deeds dated in July 2021. Dongsi Tou Tiao Trust and Dongsi Er Tiao Trust controls and manages the British Virgin Islands incorporated entities, Dongsi Tou Tiao Limited and Dongsi Er Tiao Limited, respectively, which are collectively referred to as the Trust Holdcos. In February 2022, the Company issued 4,765,903 ordinary shares to the Trust Holdcos, for the purpose of issuing ordinary shares to the grantees upon the exercise of 210,898 restricted shares and 4,555,005 share options. The ordinary shares issued to the Trust Holdcos were accounted for as treasury shares of the Company upon issuance. The Trust Holdcos do not hold any other assets or liabilities as of December 31, 2022, nor earn any income nor incur any expenses for the year then ended. During the year ended December 31, 2022 with the consummation of the IPO, 141,864 restricted shares were released from restriction for the satisfaction of vesting condition (see Note 13 for details). The related par value with immaterial amount was deducted from treasury shares and transferred to additional paid-in capital. In July 2022, the Company’s board of directors resolved to adopt a dual-class voting structure that will become effective immediately prior to the completion of its IPO. Holders of Class A ordinary shares and holders of Class B ordinary shares will have the same rights, except for voting and conversion rights. In respect of matters requiring a shareholder’s vote, each Class A ordinary share will be entitled to one vote and each Class B ordinary share will be entitled to ten votes. Upon completion of the IPO, the Class B ordinary Shares will be held only by Mr. Larry Lei Wu and his vehicles, namely Ji Xiang Hu Tong Holdings Limited and Talent Boom Group Limited. All other shareholders will hold only Class A ordinary shares. Each Class B ordinary share was stipulated to be convertible into one Class A ordinary share at any time, by the holder thereof. However, Class A ordinary shares were not entitled to be convertible into Class B ordinary shares at any time, under any circumstances. In August 2022, the Company completed its IPO on the Nasdaq Global Market, or Nasdaq, under the symbol “GCT”. Upon the completion of the IPO: a. The dual-class voting structure has become effective. 1,571,043 Series B redeemable convertible preferred shares (“Preferred Shares”) which were beneficially owned by Mr. Larry Lei Wu, the founder, chairman of board of directors and chief executive officer of the Company were converted to Class B ordinary shares at a par value of US$0.05 per share on a one-for-one-basis. b. The Series B Preferred Shares held by investors other than Mr. Larry Lei Wu and all other series of Preferred Shares (including 3,999,709 Series E Preferred Shares which were recorded as mezzanine equity) with the aggregated 19,856,932 shares were converted to Class A ordinary shares at a par value of US$0.05 per share on a one-for-one-basis. . c. The Company issued 3,381,000 Class A ordinary shares (including 441,000 Class A ordinary shares issued to the underwriter by exercising its over allotment option) at an issuance price of US$12.25 per share for net proceeds of US$33.4 million, after deducting underwriting commissions and other offering expenses in the aggregated amount of US$8.0 million. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 13. SHARE-BASED COMPENSATION In addition to the ordinary shares issued to the Group’s former chief financial officer in February 2022 as disclosed in the Note 12, the Group granted share-based awards to certain employees and non-employee service providers, of which, the details are specified as follows: 2017 Share Incentive Plan On March 27, 2017, the board of directors resolved to approve another share award scheme (the “2017 Share Incentive Plan” or the “2017 Plan”) to the Group’s eligible employees and non-employee Share options In 2020, share awards under 2017 Plan were granted, of which, share awards were granted to non-employee service providers for providing operation consultation and business development services. The remaining share awards were granted to the Group’s directors and employees. Of the total grants, 1,661,635 share options contained service condition that required the grantees to render services for a period ranged from six months to forty-two months. On October 15, 2020, Larry Lei Wu entered into an arrangement with the Company, whereby share options were repurchased by the Company with the price at US$ per share with total consideration of US$ . The repurchases did not trigger the consideration of classification of the share options from equity to liability, as the repurchase was within the sole control of the Company. On July 11, 2021, the Company’s board of directors resolved to approve the immediate exercise share options, which were granted under the 2017 Plan to certain directors and key employees on July 1, 2020 and July 1, 2021, respectively. These share options were originally exercisable upon a qualified IPO before expiration date after grant dates with no vesting condition stipulated. The Group accounted for the modification as a not probable-to-probable modification. Such modification resulted in unrecognized share-based compensation expenses of US$9,681 as general and administrative expenses in the consolidated statement of comprehensive income for the year ended December 31, 2021. In July 2021, the board of directors further resolved to grant 1,160,557 share options to the Group’s eligible employees under the 2017 Plan. No service condition was stipulated for the share options. Except for the repurchase of share awards in 2020 and the modification of awards made to certain directors and key employees in 2021, all outstanding share awards as of December 31, 2020 and 2021 can only be exercised upon the consummation of a qualified IPO before expiration date of after the date of the awards. The completion of a qualified IPO is considered a performance condition of the awards. A qualified IPO is not considered being probable by management before it is completed. Under ASC 718, compensation cost should be recognized if it is probable that the performance condition will be achieved. As a result, no compensation expense was recognized related to these shares awards. A summary of the share options for the years ended December 31, 2020 and 2021 is presented below: Number of Weighted Weighted grant-date fair Weighted Aggregate US$ US$ US $ Outstanding at January 1, 2020 2,152,830 0.05 0.40 4.97 753 Granted 2,833,812 0.05 2.30 10 6,376 Repurchased (389,486 ) 0.05 6.25 9.14 (2,415 ) Outstanding at December 31, 2020 4,597,156 0.05 1.08 6.89 4,714 Number of Weighted Weighted grant-date fair Weighted Aggregate US$ US$ US$ Outstanding at December 31, 2020 4,597,156 0.05 1.08 6.89 4,714 Granted 1,160,557 0.05 6.10 10 7,021 Exercised (1,587,086 ) 0.05 6.10 9.19 (9,602 ) Outstanding at December 31, 2021 4,170,627 0.05 0.57 5.64 2,133 In February 2022, the board of directors resolved to grant 385,434 share options to its employees with no service condition stipulated. The completion of a qualified IPO is considered a performance condition of the share option awards, which is not considered being probable by management before it is completed. Pursuant to the consummation of the IPO in August 2022, the Group recognized share-based compensation expenses of US$8,825 for 4,529,383 share options upon the vest. In addition, the Group also approved the modification to cancel the service condition of 26,678 share options, which were granted under the 2017 Plan to certain employees on July 1, 2020. The Group accounted for the modification as a probable-to-probable modification but did not record any incremental share-based compensation expense since the fair value of the modified awards immediately after the modification was not greater than the fair value of the original awards immediately before the modification. The Group recorded share-based compensation expenses of US$62 relating to the 26,678 share options with original grant date fair value in general and administrative expenses in the consolidated statement of comprehensive income after the modification. All share options have vested upon the consummation of the IPO. The following table summarizes activities of share options for the year ended December 31, 2022: Number of shares Weighted average exercise price Weighted average grant- date fair value Weighted remaining contractual years Aggregate intrinsic value US$ US$ US$ Outstanding at December 31, 2021 4,170,627 0.05 0.57 Granted 385,434 0.05 7.43 Outstanding at December 31, 2022 4,556,061 0.05 1.15 Vested and expect to be vested at December 31, 2022 4,556,061 0.05 1.15 5.02 5,239 Exercisable at December 31, 2022 4,556,061 0.05 1.15 5.02 5,239 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the underlying stock at each reporting date. The fair values of share options granted are estimated on the dates of grant using the binomial option pricing model with the following assumptions used: Year ended December 31, Grant dates: 2020 2021 2022 Risk-free rate of return 0.67 % 1.46 % 1.80 % Volatility 45.23 % 44.17 % 43.6 % Expected dividend yield 0.00 % 0.00 % 0.00 % Exercise multiple 2.20/2.80 2.20/2.80 2.20/2.80 Fair value of underlying ordinary share US$2.35 US$6.15 US$7.5 Expected terms 10 years 10 years 10 years The expected volatility was estimated based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Group’s options. The risk-free interest rate was estimated based on the yield to maturity of U.S. treasury bonds denominated in US$ for a term consistent with the expected term of the Group’s options in effect at the option valuation date. Expected dividend yield is zero as the Group does not anticipate any dividend payments in the foreseeable future. The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. Expected term is the contract life of the option. Total compensation expenses recognized are allocated to the following expense items. Year ended December 31, 2020 2021 2022 US$ US$ US$ Cost of revenues — — 487 Selling and marketing expenses — — 748 General and administrative expenses — 9,681 7,652 Total share compensation expenses — 9,681 8,887 Restricted shares In February 2022, the board of directors also resolved to grant 205,708 and 5,190 restricted shares to its employees and non-employee days at the exercise price of per share after the grant date of such restricted shares; otherwise, the Company shall be entitled to cancel the grant. The grantees are subject to the service condition of three years’ continuous service since their service commencement in the Group; upon the grantee’s early service termination, the Company shall have the right (but not the obligation) to repurchase all or any portion of the shares in cash, at the amount of the original purchase price actually paid by the grantee for such restricted shares. The restricted shares will immediately be released from restrictions upon the satisfaction of both (1) completion of a qualified IPO, and (2) the completion of the grantees three years’ continuous service since their service commencement in the Group. When both criteria are achieved, the grantees are entitled to cliff and cumulatively vest the total grants. Pursuant to the completion of the IPO in August 2022, as of December 31, 2022, 141,864 restricted shares were released as grantees of such restricted shares satisfied the service condition of three years’ continuous service since their service commencement in the Group. For the 141,864 restricted shares, the Company recognized trivial amount share-based compensation expenses during the year ended December 31, 2022. The grant date fair value of the restricted shares is US$0.0015, which was estimated using the income approach and equity allocation method. Estimation of the fair value of the shares involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, discount rate, risk-free interest rate and subjective judgments regarding the Group’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. The fair value of these awards was determined by management with the assistance from a valuation report prepared by an independent valuation firm using management’s estimates and assumptions. On November 18, 2022, the board of directors further resolved to grant 10,000 restricted shares to one non-employee service provider. The exercise price of the restricted shares was stipulated as US$0.05 per share, which is identical with par value of the Company’s ordinary shares. The restricted shares vested immediately after the grants with no further condition required. Given the award was directly attributable to the IPO consummated, the Company recorded the cost of US$59 against the gross proceeds of the offering. A summary of the Company’s restricted shares for the year ended December 31, 2022 is presented below: Number of shares Weighted average grant date fair value Outstanding at January 1, 2022 — — Granted 220,898 0.2690 Vested (151,864 ) 0.3906 Outstanding at December 31, 2022 69,034 0.0015 Expect to be vested at December 31, 2022 69,034 0.0015 As of December 31, 2022, unrecognized compensation expenses with trivial amount relating to the remaining unvested restricted shares will cliff and cumulatively vest upon the satisfaction of the service condition. In 2022, the Group received the total exercise consideration of these restricted shares amounting to US$1,578. The consideration of US$1,061 related to the vested restricted shares were recorded in additional paid-in capital, while the remaining of US$517 was recorded in accrued expenses and other current liabilities as of December 31, 2022. |
Warrant
Warrant | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Warrant | 14. WARRANT On July 1, 2022, the Company entered into an agreement with Aegis Capital Corp. (the “Underwriter”), pursuant to which, the Company agrees to issue a warrant to the Underwriter upon the completion of its IPO as additional compensation for the Underwriter’s services, which entitles the Underwriter to purchase up to 1.0% of Class A ordinary shares sold in the IPO in the par value of US$0.05 per share, at the exercise price of 150% of the public offering price of US$12.25 per share. The Company issued a warrant to the Underwriter at the closing of the offering on August 22, 2022, and the Underwriter is entitled to subscribe for, purchase and receive, in whole or in part, up to 29,400 Class A ordinary shares in the par value of US$0.05 per share, at the exercise price of US$18.375 per share, at any time beginning February 17, 2023, and at or before February 17, 2025. The warrant is classified as equity under ASC 718. The Company initially recognized warrant in the amount of US$748 in addition paid in capital based on the fair value of the warrant, which was determined using the binomial option pricing model on the issuance date. In addition, given the warrant was directly attributable to the IPO consummated, the Company recorded the cost incurred against the gross proceeds of the offering. The fair value of the warrant upon the issuance during the year ended December 31, 2022 is estimated with the following assumptions used respectively: Year ended December 31, 2022 Risk-free rate of return 3.14 % Volatility 46.68 % Expected dividend yield 0.00 % Fair value of underlying ordinary share US$41.41 Expected terms 2.5 years The expected volatility was estimated based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the warrant. The risk-free interest rate was estimated based on the yield to maturity of U.S. treasury bonds denominated in US$ for |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 1 5 a) Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. The United States of America The U.S. subsidiaries are subject to U.S. federal income taxes and state and local income taxes. In connection with U.S. tax legislation enacted in December 2017, the federal income tax rate for corporations changed to 21% beginning from January 1, 2018, while state income tax rates generally remained the same as in previous years. The U.S. federal income tax rules also provide for enhanced accelerated depreciation deductions by allowing the election of full expensing of qualified property, primarily equipment, through 2022. Dividends received from U.S. corporation are U.S. source and would be subject to 30% withholding tax, unless reduced by a tax treaty or agreement. Hong Kong S.A.R. Under the current Hong Kong S.A.R. Inland Revenue Ordinance, the Company’s Hong Kong S.A.R. subsidiary is subject to Hong Kong S.A.R. profits tax at the rate of 16.5% on its taxable income generated from the operations in Hong Kong S.A.R. The first HK$2,000 of assessable profits earned by a company will be taxed at 8.25% whilst the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. Payments of dividends by the Hong Kong S.A.R. subsidiary to the Company is not subject to withholding tax in Hong Kong S.A.R. The Inland Revenue (Amendment) (Taxation on Specified Foreign-sourced income) Bill 2022 (“the new FSIE regime”) has been enacted in Hong Kong on December 14, 2022 and will have effect from January 1, 2023 onwards. This is to address the European Union’s inclusion of Hong Kong in the “grey list” in concern of any risk of double non-taxation arising from the tax exemption of offshore passive income for companies in Hong Kong without substantial economic substance. From January 1, 2023, offshore passive income (including interest income, dividend income or gain on disposal of equity interest (where applicable)), that is received or deemed to be received in Hong Kong (i.e., identical to the “received” concept in Singapore), would need to meet additional requirements, including, amongst others, the economic substance requirements (i.e. similar to offshore jurisdictions like Cayman Islands, British Virgin Islands, etc.) in order to continue to be entitled to the offshore income tax exemption in Hong Kong. The PRC Under the Enterprise Income Tax Law (“EIT Law”) in the PRC, domestic companies are subject to EIT at a uniform rate of 25%. The Company’s PRC subsidiaries and VIEs are subject to the statutory income tax rate at 25%, unless a preferential EIT rate is otherwise stipulated. On December 24, 2019, the Company’s wholly-owned subsidiary, Gigacloud Suzhou, obtained a certificate from related authorities of local government for “Advanced Technology Service Enterprise (“ATSE”) qualification. This certificate entitled Gigacloud Suzhou to enjoy a preferential income tax rate of 15% for a period of three years from 2019 to 2021 if all the criteria for ATSE status could be satisfied in the relevant years. Subsequently, Gigacloud Suzhou renewed and obtained the ATSE certificate in early 2023, which entitles Gigacloud Suzhou to the preferential tax rate of 15% from 2022 to 2024 if all the criteria for ATSE status could be satisfied in the relevant year. Under the EIT Law and its implementation rules, an enterprise established outside China with a “place of effective management” within China is considered a China resident enterprise for Chinese enterprise income tax purposes. A China resident enterprise is generally subject to certain Chinese tax reporting obligations and a uniform 25% enterprise income tax rate on its worldwide income. The implementation rules to the EIT Law provide that non-resident Dividends paid to non-PRC-resident PRC-resident non-PRC-resident The components of income before income taxes are as Year ended December 31, 2020 2021 2022 US$ US$ US$ Hong Kong S.A.R. 37,211 35,825 27,832 The PRC, excluding Hong Kong S.A.R. 143 1,685 3,734 The U.S. 7,158 9,346 6,502 Others 763 (9,131 ) (6,904 ) Total 45,275 37,725 31,164 For the years ended December 31, 2020, 2021 and 2022, the details of income tax expense are set forth below: Year ended December 31, 2020 2021 2022 US$ US$ US$ Current — The U.S. 1,263 2,172 2,706 — The PRC, excluding Hong Kong S.A.R. 5,665 5,750 3,886 — Others 274 415 417 Total current tax expense 7,202 8,337 7,009 Deferred — The U.S. 638 170 186 — The PRC, excluding Hong Kong S.A.R. (20 ) (39 ) (3 ) Total deferred tax expense 618 131 183 Income tax expense 7,820 8,468 7,192 The Group prepared the income tax rate reconciliation using the income tax rate of PRC where the Group’s major operation domiciles. The actual income tax expense reported in the consolidated statements of comprehensive income for each of the years ended December 31, 2020, 2021 and 2022 differs from the amount computed by applying the PRC income tax rate of due Year ended December 31, 2020 2021 2022 US$ US$ US$ Computed expected income tax expenses at the PRC tax rate of 25% 11,319 9,431 7,791 Tax rate differential for non-PRC (2,928 ) (134 ) (1,387 ) Preferential tax rate (31 ) (44 ) (509 ) Net operating loss carryforwards expired 6 933 12 Change in unrecognized tax benefits 38 232 254 Non-deductible 4 2 2 Non-taxable (6,140 ) (6,148 ) (4,593 ) Special tax adjustment in the PRC** 5,582 5,589 3,263 Others 24 (435 ) 777 Change in valuation allowance on deferred tax assets (54 ) (958 ) 1,582 Total 7,820 8,468 7,192 * On the basis that the operations of GigaCloud Technology (HongKong) Limited (“Giga HK”) that gave rise to the profits derived by Giga HK were entirely undertaken outside of Hong Kong S.A.R, the corresponding profits are treated as offshore sourced and not subject to Hong Kong S.A.R. profits tax. ** As the profits derived by Giga HK were attributed to the PRC, Gigacloud Suzhou recognized Giga HK offshore sourced profits as taxable income of Gigacloud Suzhou. b) Deferred tax assets and deferred tax liabilities December 31, 2021 2022 US$ US$ Net operating losses carryforwards 1,204 2,786 Inventories under the uniform capitalization (UNICAP) rules 808 744 Inventory write-down 619 672 Accrued expenses and other current liabilities 305 308 Operating lease liabilities, current and non-current — 33,494 Others 134 157 Less: valuation allowance (1,204 ) (2,786 ) Total deferred tax assets, net 1,866 35,375 Tax impact of full expensing of qualified property and equipment (2,080 ) (2,370 ) Finance leases — (80 ) Operating lease right-of-use assets — (33,322 ) Total gross deferred income tax liabilities (2,080 ) (35,772 ) Net deferred liabilities (214 ) (397 ) The deferred taxes noted above are classified as follows in the Group’s consolidated balance sheets: Year ended 2021 2022 US$ US$ Deferred tax assets 72 75 Deferred tax liabilities (286 ) (472 ) Net deferred liabilities (214 ) (397 ) Changes in valuation allowance are as follows: Year ended 2021 2022 US$ US$ Balance at the beginning of the year 2,162 1,204 Additions 322 1,643 Decrease (1,280 ) (61 ) Balance at the end of the year 1,204 2,786 Unremitted Earnings As of December 31, 2020, 2021 and 2022, the Group has not respectively recorded approximately US$2,260, and , of deferred tax liabilities associated with remaining unremitted foreign earnings considered indefinitely reinvested, for which foreign income and withholding taxes would be due upon repatriation. Net Operating Losses and Valuation Allowances Net operating losses carryforwards of the Company’s subsidiaries and VIEs in jurisdictions other than the PRC do not expire. The net operating losses carryforwards of the Company’s PRC subsidiaries and VIE amounted to US$3,762, US$356 and US$595 as of December 31, 2020, 2021 and 2022 . , US$164 , 2026 7 As of December 31, 2022, the net operating loss carryforwards of the Company’s subsidiary incorporated in the United Kingdom amounted to US$10,137, do not expire. As of December 31, 2022, the net operating loss carryforwards of the Company’s subsidiary incorporated in the Germany amounted to US$2,157, do not expire. The recoverability of these future tax deductions is evaluated by assessing the adequacy of future expected taxable income from all sources, including taxable income in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent the Group does not consider it more-likely-than-not more-likely-than-not As of December 31, 2020, 2021 and 2022, the valuation allowances of US$2,162, Uncertain Tax Positions The benefits of uncertain tax positions are recorded in the Company’s consolidated financial statements only after determining a more-likely-than-not As of December 31, 2020, 2021 and 2022, the amounts of unrecognized tax benefits were A reconciliation of unrecognized tax benefits from continuing operations is as follows: Year ended December 31, 2020 2021 2022 US$ US$ US$ Unrecognized tax benefits, beginning of year 763 801 1,033 Increases 38 232 254 Reclassified from prior-year income tax payable — — 1,607 Unrecognized tax benefits, end of year 801 1,033 2,894 The Group classifies interest and penalties related to uncertain tax benefits as income tax expense. The Group recognizes the benefit of positions taken or expected to be taken in tax returns in the financial statements when it is more-likely-than-not Due to uncertainties under the tax law, positions taken on tax returns may be challenged and ultimately disallowed by taxing authorities. Accordingly, it may not be appropriate to reflect a position taken on the tax return when the outcome of that tax position is uncertain. For the years ended December 31, 2020, 2021 and 2022, the Group recorded the amounts of US$38, US$232 According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB100. In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. The income tax returns of the Company’s PRC subsidiary and the VIEs for the years from 2020 to 2022 are open to examination by the PRC tax authorities. |
Net Income Per Ordinary Share
Net Income Per Ordinary Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Ordinary Share | 16. NET INCOME PER ORDINARY SHARE The following table sets forth the basic and diluted net income per ordinary share computation and provides a reconciliation of the numerator and denominator for the years presented: Year ended December 31, 2020 2021 2022 US$ US$ US$ Numerator: Net income 37,455 29,257 23,972 Net income attributable to preferred shareholders (24,344 ) (18,777 ) (8,352 ) Accretion of Series E Preferred Shares (152 ) (1,500 ) (941 ) Net income per ordinary share calculation 12,959 8,980 14,679 Denominator: Weighted average number of ordinary shares outstanding- Basic and diluted 9,495,844 10,248,079 24,412,314 Net income per ordinary share attributable to ordinary shareholders - basic and diluted 1.36 0.88 0.60 Prior to the completion of IPO The ordinary shares issued and outstanding, including 4,765,903 For the years ended December 31, 2020, and 2021 and the period from January 1, 2022 to August 17, 2022, all outstanding share-based awards are not included in the calculation of basic or diluted net income per ordinary share, as the issuance of such awards is contingent upon a qualified IPO within expiration period, which was not satisfied as of respective period ends. During the years ended December 31, 2020, and 2021 and the period from January 1, 2022 to August 17, 2022, the Preferred Shares were excluded from the calculation of diluted earnings per ordinary share as their inclusion would have been anti-dilutive. After IPO When the IPO was consummated on August 17, 2022, the issued and outstanding 21,427,975 Series A, B, C, D and E Preferred Shares were converted into the Company’s ordinary shares at a par value of US$ For the period after the IPO to December 31, 2022, the 29,400 Class A ordinary shares to be issued to the Underwriter upon the exercise of the warrant (disclosed in the Note 14), and the 69,034 unvested restricted shares with the exercise price of US$7.48 per share (disclosed in the Note 13) are not included in the calculation of dilutive net income per ordinary share under the treasury stock method, as their exercise prices are higher than the fair market value of the Company’s ordinary shares as at December 31, 2022, representing out-of-the-money impact from the holder’s perspective. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 17. REVENUES The Group’s revenues are disaggregated by major products/service lines and timing of revenue recognition. Detailed Year ended December 31, Major products/services lines 2020 2021 2022 US$ US$ US$ Service revenues Platform commission 3,888 4,814 6,872 Ocean transportation service 12,537 36,257 37,957 Warehousing service 3,310 10,498 16,242 Last-mile delivery service 26,294 33,693 62,745 Others 14,101 13,070 16,812 Total service revenues 60,130 98,332 140,628 Product revenues Product sales to B 39,858 50,699 49,128 Product sales to C 53,388 76,900 68,633 Off-platform 93,246 127,599 117,761 GigaCloud 1P 122,102 188,266 231,682 Total product revenues 215,348 315,865 349,443 Revenues 275,478 414,197 490,071 Year ended December 31, Timing of revenue recognition 2020 2021 2022 US$ US$ US$ Revenue from goods or services transferred to customers over time 48,148 89,986 121,951 Revenue from goods or services transferred to customers at a point in time 227,330 324,211 368,120 Revenues 275,478 414,197 490,071 Contract Liabilities As of December 31, 2021 and 2022, the amounts of contract liabilities are US$3,690 and US$2,001, respectively. Changes in the contract liabilities balances for the years ended December 31, 2020, 2021 and 2022 are as follows: Year ended December 31, 2020 2021 2022 US$ US$ US$ Balance as of beginning of the year 362 3,424 3,690 Revenue recognized from opening balance of contract liabilities (362 ) (3,424 ) (3,690 ) Increase due to cash received 158,696 199,271 302,474 Revenue recognized from cash received during the year (155,283 ) (195,580 ) (300,439 ) Foreign exchange effect 11 (1 ) (34 ) Balance as of end of the year 3,424 3,690 2,001 Contract liabilities relate to considerations received in advance for merchandise sales and services provided on GigaCloud Marketplace for which control of the services occur at a later point in time. The contract liabilities will be recognized as revenue when the Group fulfils its performance obligations to transfer the promised products or services to customers, which is expected to occur within one The Group has elected the practical expedient in ASC 606-10-50-14(a) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 8 The Group leases offices and warehouse under non-cancelable Except for those, the Group did not have any other commitments or long-term obligations as of December 31, 2022. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block [Abstract] | |
Restricted Net Assets | 19. RESTRICTED NET ASSETS The Group’s ability to pay dividends is primarily dependent on the Group receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s subsidiaries and consolidated VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with the PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Group’s subsidiaries. In accordance with the PRC Regulations on Enterprises with Foreign Investment, a foreign invested enterprise established in the PRC is required to provide certain statutory reserve funds, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profits as reported in the enterprise’s PRC statutory financial statements. A foreign invested enterprise is required to allocate at least 10% of its annual after-tax Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory surplus fund at least 10% of its annual after-tax As a result of these PRC laws and regulations that require annual appropriations of 10% of net after-tax Amounts restricted include paid-in eter 5-04(c), of the consolidated net assets, the condensed parent company financial statements as of and for the three-year period ended December 31, 2022 are not prepared. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. SUBSEQUENT EVENTS In January 2023, the Company terminated the Account Control Agreements with two of its consolidated VIEs, Blitz Distribution GMBH and GIGA CLOUD LOGISTICS INC, which are located in Germany and the United States, respectively. Concurrently with the termination, the Company equity interest of the two entities from its nominal shareholder with nominal consideration through capital contribution of insignificant amount. In March 2023, the Company approved to grant an aggregated number of 35,170 restricted share units to two employees. The restricted share units shall vest immediately. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Share Consolidation | (b) Share Consolidation On July 5, 2022, the Company effected a 1-for-500 |
Principles of Consolidation | (c) Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs for which the Company is the primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A consolidated affiliated entity is an entity in which the Company, or its subsidiary, through contractual arrangements, exercises effective control over the activities that most impact the economic performance, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All intercompany transactions and balances among the Company, its wholly-owned subsidiaries and the VIEs have been eliminated upon consolidation. |
Use of Estimates | (d) Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet dates, and the reported revenues and expenses during the reported periods. Significant accounting estimates include, but not limited to, the valuation and recognition of share-based compensation arrangements, inventory reserve for excess and obsolete inventories. Incremental borrowing rate of leases, and the length of lease terms which vary by country and often include renewal options, are important factor in determining the appropriate accounting for leases including the initial classification of the lease as finance (referred to as “capital leases” prior to the adoption of Accounting Standards Update (“ASU”) No. 2016-02, Leases |
Foreign Currency | ( e The Group’s reporting currency is U.S. dollars (“US$”). The functional currency of the Group’s entities incorporated in Cayman Islands, the U.S. and Hong Kong is US$. The Group’s PRC subsidiaries and consolidated VIEs determined their functional currency to be Renminbi (“RMB”). The Group’s entities incorporated in Japan, Germany, the United Kingdom and other jurisdictions use their respective local currencies as their functional currencies. The determination of the respective functional currency is based on the criteria of Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded as “Foreign currency exchange gains, net” in the consolidated statements of comprehensive income. The Group entities with functional currencies other than the RMB, US$, including Great Britain Pound (“GBP”), Japanese Yuan (“JPY”), Hong Kong Dollar (“HK$”), Euro (“EUR”) and Vietnamese Dong (“VND”), translate their operating results and financial position into the US$, the Group’s reporting currency. Assets and liabilities denominated in foreign currencies are translated into US$ using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into US$ at the appropriate historical rates. Revenues, expenses, gains and losses are translated into US$ using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in accumulated other comprehensive income as a component of shareholders’ equity. |
Commitments and Contingencies | ( f In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income |
Cash | ( g Cash consists of deposits at financial institutions. Cash is deposited into financial institutions at the locations listed below: December 31, 2021 2022 US$ US$ Financial institutions in Cayman Islands - Denominated in the US$ 20,419 — Total cash balances held at Cayman financial institutions 20,419 — Financial institutions in the United States - Denominated in the US$ 12,480 47,028 - Denominated in the GBP — 56 Total cash balances held at United States financial institutions 12,480 47,084 Financial institutions in Hong Kong - Denominated in the US$ 18,175 40,001 - Denominated in the EUR 3,038 734 - Denominated in the GBP 3,014 1,635 - Denominated in the JPY 113 316 - Denominated in the HK$ — 67 Total cash balances held at Hong Kong financial institutions 24,340 42,753 Financial institutions in Japan - Denominated in the JPY 1,718 6,640 - Denominated in the US$ 234 1,405 Total cash balances held at Japan financial institutions 1,952 8,045 Financial institutions in the United Kingdom - Denominated in the GBP 335 104 - Denominated in the US$ 35 14 - Denominated in the EUR — 3,158 Total cash balances held at the United Kingdom financial institutions 370 3,276 Financial institutions in the mainland of the PRC - Denominated in the RMB 2,071 1,616 - Denominated in the US$ 509 31,961 - Denominated in the EUR — 1,066 - Denominated in the GBP — 6,870 Total cash balances held at the PRC financial institutions 2,580 41,513 Financial institutions in German y December 31, 2021 2022 US$ US$ - Denominated in the EUR 742 816 - Denominated in the US$ 235 — - Denominated in the GBP 1 — Total cash balances held at Germany financial institutions 978 816 Financial institutions in Vietnam - Denominated in the VND 1 44 - Denominated in the US$ 78 — Total cash balances held at Vietnam financial institutions 79 44 Total cash held at financial institutions 63,198 143,531 |
Restricted Cash | ( h Cash that is restricted for withdrawal or use is reported separately on the face of the consolidated balance sheets. The Group’s restricted cash represents security deposits held in designated bank accounts for issuance of letters of guarantee. As of December 31, 2021 and 2022, the restricted cash, held by the Group at the United States financial institutions and denominated in the US$, amounted to US$664 and US$1,545, respectively. A reconciliation of cash and restricted cash in the consolidated balance sheets to the amounts in the consolidated statement of cash flows is as follows: December 31, 2021 2022 US$ US$ Cash 63,198 143,531 Restricted cash 664 1,545 Total cash and restricted cash shown in the consolidated statements of cash flows 63,862 145,076 |
Contract Balances | ( i The timing of revenue recognition, billings and cash collections result in accounts receivable and contract liabilities. A contract liability is recognized when the Group has an obligation to transfer goods or services to a customer for which the Group has received consideration from the customer, or for which an amount of consideration is due from the customer. Accounts receivable are recognized in the period when the Group has transferred products or provided services to its customers and when its right to consideration is unconditional. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statement of cash flows. The Group maintains a general and specific allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. Accounts receivable balances with large creditworthy customers are reviewed by management individually for collectability. All other balances are reviewed on a pooled basis. A percentage of general allowance is applied to the balances of accounts receivable in each aging category, excluding those which are assessed individually for collectability. Management considers various factors, including historical loss experience, current market conditions, the financial condition of its debtors, any receivables in dispute, the aging of receivables and current payment patterns of its debtors, in establishing the required allowance. An allowance for doubtful accounts is made and recorded into general and administrative expenses. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance |
Inventories | ( j Inventories, consisting of products available for sale, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the first-in, |
Property and Equipment, net | ( k Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows: Office and other equipment 3-5 years Vehicles 10 years Logistics, warehouse and other heavy equipment 15 years When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred. |
Leases | ( l In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 The Group categorizes leases at their inception as either operating or finance leases. Lease agreements mainly cover office space, warehouses, storage rack and other heavy equipment used in the warehouses. Most of these leases are operating leases; however, certain warehouse storage shelves from a third-party lessor are leased under finance leases. Leased assets pursuant to operating leases are included in operating lease right-of-use right-of-use The adoption of ASC 842 does not have impact to the retained earnings of the Group as of January 1, 2022. The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. December 31, Adjustments due to adoption of January 1, 2021 ASC 842 2022 US$ US$ US$ ASSETS Prepayments and other current assets 9,080 (2,344 ) (a) 6,736 Operating lease right-of-use — 150,568 (b) 150,568 LIABILITIES Accrued expenses and other current liabilities 19,721 (4 ) (c) 19,717 Current operating lease liabilities — 28,612 (d) 28,612 Operating lease liabilities, non-current — 119,616 (d) 119,616 Capital lease obligations 2,345 (2,345 ) (e) — Finance lease obligations, non-current — 2,345 (e) 2,345 (a) Represents the prepaid rent reclassified to operating lease right-of-use (b) Represents the result of discounting operating lease payments, the reclassification of prepaid rent and deferred rent accrual. (c) Represents the deferred rent accrual reclassified to operating lease right-of-use (d) Represents the recognition of operating lease liabilities, current and non-current. (e) The account caption of “Capital lease obligations” in non-current liabilities was changed to “Finance lease obligations, non-current” |
Impairment of Long-lived Assets other than Goodwill | ( m Long-lived assets with finite useful lives are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the 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, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment of long-lived assets w as |
Revenue recognition | ( n The Group recognizes revenues when the Group satisfies a performance obligation by transferring a promised good or service (that is, an asset) to a customer. An asset is transferred when the customer obtains control of that asset. The Group evaluates whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. When the Group is a principal, that the Group obtains control of the specified goods or services before they are transferred to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When the Group is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods or services, the revenues should be recognized in the net amount for the amount of commission which the Group earns in exchange for arranging for the specified goods or services to be provided by other parties. Revenues are recorded net of value-added taxes. The Group focuses on selling large parcel merchandise to various distributors and individual customers, as well as the provision of ecommerce solutions on its own platform (“GigaCloud Marketplace”), with which the Group could democratize access and distribution globally to manufacturers (“Sellers”) and online resellers (“Buyers”) without borders. The Group’s revenues include revenues from product sales and services. Product sales include sales on the GigaCloud Marketplace (“GigaCloud 1P”) and sales to and through third-party ecommerce websites (“Off-platform GigaCloud 1P The Group sells its merchandise to its customers, who are the Buyers of the GigaCloud Marketplace. The Group recognizes revenues net of discounts and return allowances. Such revenue is recognized at the point in time when the control of the merchandise is transferred to the Buyers, which generally occurs upon the shipment out of the Group’s warehouse to the destination designated by the Buyers. Off-platform There are two business lines subject to Off-platform Product sales to B The Group sells its merchandise to third-party ecommerce websites, who normally designate carrier companies to pick up merchandise from the Group’s warehouses. The Group recognizes revenue net of discounts and return allowances. Such revenue is recognized at the point in time when the third-party ecommerce websites obtain control of the merchandise, which is the shipment out of the Group’s warehouse and pick-up Product sales to C The Group sells its merchandise to individual customers through third-party ecommerce websites. The Group recognizes revenue when the control is transferred to the individual customers at an amount that reflects the consideration to which the Group expects to be entitled in exchange of that merchandise. Revenue is recognized at the point in time when the individual customers take possession of merchandise, which is when a merchandise is delivered to the customers. Expenses incurred for product sales made through these websites, which are considered as platform commission, are recorded as selling and marketing expenses. Regarding GigaCloud 1P and Off-platform GigaCloud 3P The Group enters contracts with customers, which often include promises to transfer multiple services. For these contracts, the Group accounts for individual performance obligations separately if they are capable of being distinct and distinct within the context of the contract. Determining whether services are considered distinct performance obligations may require significant judgment. Judgment is also required to determine the stand-alone selling price, for each distinct performance obligation. The Group charges commission fees for sales transaction consummated on GigaCloud Marketplace. The Group acts as an agent, as it does not take control of the merchandise provided by the Sellers at any time during the transactions and does not have latitude over pricing of the merchandise. The Group sets a percentage of the transacted product value as commission fees initially when a transaction is completed; and, for customers whose monthly transaction value reaches certain specified hurdles, they would receive a varying level of credits that is applied retrospectively depending on the tier they have reached. Revenue of commission fee is recognized upon successful sales of the merchandise by the Sellers when the Buyers take ownership of the merchandise and could control the merchandise at their wish. As the Group resets and confirms the credit and hence the effective rate of commission fee for each Seller at the end of each calendar month, no estimation is required beyond the end of each month. The Group also offers comprehensive supply chain solutions for Sellers. The Group provides services to help the Sellers to ship the merchandise from the Sellers’ manufacturing plant to the Group’s oversea warehouses, utilizing the Group’s extensive shipping network consisting of ocean transportation providers, custom declaration agents, and domestic shipping companies. Further, the Group also provide warehousing service to the Sellers and Buyers, whoever have the ownership of the merchandise, in connection with the storage of merchandise in the Group’s warehouses, as well as the last-mile delivery services from the Group’s warehouses to domestic destinations designated by the Buyers. Revenues resulting from these services are recognized over time, as the Group performs the services in the contracts with continuous transfer of control to the Sellers or Buyers, and they could simultaneously receive and consume the benefits of the Group’s performance as it occurs. The Group is acting as a principal in providing warehousing service, ocean transportation service and last-mile delivery services and recognizes revenue on a gross basis, as the Group determines the price and selects carriers on its own discretion. The Sellers and Buyers could choose one or several of the above-mentioned services on GigaCloud Marketplace. Therefore, there may be multiple performance obligations included in one transaction. Revenue is allocated to each performance obligation based on its standalone selling price. The Group generally determines standalone selling prices based on observable prices. If the standalone selling price is not observable through past transactions, the Group estimates the standalone selling price based on multiple factors, including but not limited to management approved price list or cost-plus margin analysis. |
Cost of Revenues | ( o Cost of product sales primarily consists of the purchase price of merchandise, shipping and handling costs for self-owned merchandise, warehouse rental expenses excluding the portion allocated to cost of service revenue, packaging fees and personnel related costs. Cost of services primarily consists of the domestic delivery cost, a portion of warehouse rental expenses, as well as the costs associated with the operation of the GigaCloud Marketplace. The shipping and handling costs primarily consist of those costs incurred during the process of delivery in North America and markets in other regions, including the expenses attributable to shipment and handling activities, when the Group delivers a good to a customer. |
Selling and Marketing Expenses | ( p Selling and marketing expenses mainly consist of platform service fee charged by third-party ecommerce websites arising from Product sales to C of Off-platform ecommerce, promotion expenses, payroll and related expenses for personnel engaged in selling and marketing activities and rental and depreciation expenses relating to facilities and equipment used by those employees. |
Advertising Expenses | ( q Advertising expenses, including advertisements through various forms of media and marketing and promotional activities, are included in “selling and marketing expenses” in the consolidated statements of comprehensive income when incurred. Total advertising expenses incurred were US$1,075, US$1,851 and US$1,530 for the years ended December 31, 2020, 2021 and 2022, respectively. |
General and Administrative Expenses | ( r General and administrative expenses mainly consist of share-based compensation, payroll and related costs for employees involved in general corporate functions, expenses associated with the use of facilities and equipment by these employees, such as rental and depreciation expenses, professional fees and other general corporate expenses. |
Government grants | ( s Government grants are recognized when there is reasonable assurance that the Group will comply with the conditions attached to it and the grants will be received. The Group received government grants to support growth and competitiveness in the internet industry. No future related costs are stipulated. The government grants will be recognized in the Group’s consolidated statement of comprehensive income when the grant becomes receivable. Government grants of |
Share-based Compensation | ( t The Group applies ASC 718 (“ASC 718”) Compensation—Stock Compensation to account for its share-based payments. In accordance with ASC 718, the Group determines whether an award should be classified and accounted for as a liability award or an equity award. Share-based awards in the form of share options, restricted shares and ordinary shares are equity-classified awards and measured at the grant date fair value of the awards. Compensation expenses are recognized using the straight-line basis over the requisite service period, if and when the Group considers that it is probable that the performance condition will be achieved. When no future services are required to be performed in exchange for an award, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. Share-based awards in the form of restricted share units are liability-classified awards, as the awards are share-settleable for a fixed monetary amount. The Company recognizes compensation cost for an award with only service condition that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant date value of such award that is vested at that date. The Group elects to recognize the effect of forfeitures in compensation cost when they occur. To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards is reversed. A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. “Not probable-to-probable” modification, which refers to the modification of the award that is not expected to vest under the original vest condition at the date of the modification, the compensation cost should be recognized equal to the modified award’s fair value at the date of the modification. “Probable-to-Probable” modification, which refers to the modification that does not change the expectation that the awards will ultimately vest, the cumulative amount of compensation cost that should be recognized is the original grant date fair value of the award plus any incremental fair value resulting from the modification. Incremental compensation cost shall be measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified. |
Employee Benefits | ( u The Company’s subsidiaries and the VIEs in the PRC participate in a government mandated, multiemployer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated on the monthly basic compensation of qualified employees at a stated contribution rate of 25.5%. The Group has no further commitments beyond its monthly contribution. Employees in the United States are eligible to participate in one or more of savings plans that provide for periodic contributions by the Group based on plan-specific criteria, such as base pay, level and employee contributions. For the years ended December 31, 2020, 2021 and 2022, the costs and expenses of the obligations to the defined contribution plans amounted to US$1,689, US$1,695 and US$2,610, respectively. |
Income Taxes | ( v The Group accounts for income taxes using the asset and liability method. Current income taxes are provided on the basis of income before income taxes for financial reporting purposes, and 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. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax laws and rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not The Group applies a “more-likely-than-not” “more-likely-than-not” “more-likely-than-not” re-assessed. As disclosed in the Note 1 5 |
Concentration and Risk | ( w Concentration of customers and suppliers No customers individually represent greater than 10.0% of total revenues of the Group for the years ended December 31, 2020, 2021 and 2022. One customer individually represents greater than 10.0% of total accounts receivable balance of the Group as of December 31, 2021 and three customers individually represents greater than 10.0% of total accounts receivable balance as of December 31, 2022 December 31, 2021 December 31, 2022 proportion of total accounts receivable balance proportion of total accounts receivable balance Customer A 26.6 % 28.3 % Customer B * 14.5 % Customer C * 10.1 % * Less than 10.0% of total accounts receivable balance as of the year end. There of the total purchases of the Group for the years ended December 31, 2020, 2021 and 2022. Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, and accounts receivable. The Group’s investment policy requires cash and restricted cash to be placed with high quality financial institutions and to limit the amount of credit risk from any one institution. The Group regularly evaluates the credit standing of the counterparties or financial institutions. Accounts receivable (Note 3), derived from product sales and provision of services on the Group’s GigaCloud Marketplace, as well as amounts due from third-party payment platforms (Note 5) derived from payment from individual customers collected by third-party payment platforms on behalf of the Group, are exposed to credit risk. The assessment of the counter parties’ creditworthiness is primarily based on past history of making payments when due and current ability to pay, taking into account information specific to the counter parties as well as pertaining to the economic environment in which the counter parties operate. Based on this analysis, the Group determines what credit terms, if any, to offer to each counter party individually. If the assessment indicates a likelihood of collection risk, the Group will not deliver the services or sell the products to or through the counter parties or require the counter parties to pay cash in time to secure payment. Interest rate risk The Group’s borrowings bear interests at fixed rates. If the Group were to renew these borrowings, the Group might be subject to interest rate risk. Foreign currency exchange rate risk The Group is exposed to risks from foreign currency exchange rate fluctuations on the translation of foreign operations into U.S. dollars and on the purchase of goods by these foreign operations that are not denominated in their local currencies. Changes in currency rates resulted in gains (losses) of US$1.0 million, US$ (2.0) (4.9) |
Earnings per Share | ( x Basic earnings per share is computed by dividing net income attributable to ordinary shareholders, considering the accretions to redemption value of the preferred shares, by the weighted average number of ordinary shares outstanding during the year using the two-class two-class The Company’s preferred shares are participating securities as they participate in undistributed earnings on an as-converted Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the conversion of the preferred shares using the as-converted |
Segment Reporting | ( y The Group’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Group’s chief executive officer and management personnel do not segregate the Group’s business by revenue steam or geography. Management has determined that the Group has one operating segment. |
Statutory Reserves | ( z In accordance with the PRC Company Laws, the paid-in In addition, in accordance with the PRC Company Laws, the Group’s PRC subsidiaries and VIEs must make appropriations from their after-tax non-distributable after-tax The statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective companies. These reserves are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except for liquidation. No appropriation to the reserve fund was made by the PRC subsidiaries and VIEs, as these PRC companies had accumulated losses as determined under PRC GAAP for the years ended December 31, 2020, 2021 and 2022. |
Recent Accounting Pronouncements | (a a In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features and eliminates some of the conditions for equity classification in ASC 815-40 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of share settlement for instruments that may be settled in cash or shares. The Group adopted this standard on January 1, 2022, and such adoption did not impact on the consolidated financial statements. The Group adopted ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, on January 1, 2022. This ASU requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model. The adoption of this standard did not have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, and issued subsequent amendments to the initial guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02, collectively referred to as “ASC 326”. ASC 326 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASC 326 eliminates the probable initial recognition threshold in current GAAP and, instead, reflects an entity’s current estimate of all expected credit losses. The Group will adopt this ASC 326 on January 1, 2023. The adoption of this standard will result in a change of the Group’s provision policy primarily for accounts receivable, but is not expected to have a material impact on the Group’s consolidated financial statements. |
Description Of Business And O_2
Description Of Business And Organization (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule Of Consolidated Balance Sheets Income Statement And Cash Flows Information Of Group Variable Interest Entity [Abstract] | |
Schedule Of Consolidated Assets And Liabilities Information Of Group Variable Interest Entity | The following consolidated assets and liabilities information of the Group’s VIEs as of December 31, 2021 and 2022, and consolidated revenues, net loss and cash flow information for the years ended December 31, 2020, 2021 and 2022 have been included in the accompanying consolidated financial statements. December 31, 2021 2022 US$ US$ Cash 3,542 5,367 Accounts receivable, net 2,241 2,959 Inventories 9,933 9,551 Amounts due from related parties* 1,271 1,249 Prepayments and other current assets 2,386 1,277 Total current assets 19,373 20,403 Property and equipment, net 660 548 Operating lease right-of-use — 5,398 Other non-current — 890 Total assets 20,033 27,239 Accounts payable 1,433 4,185 Contract liabilities 394 385 Current operating lease liabilities — 1,864 Income tax payable 78 280 Accrued expenses and other current liabilities 341 442 Amounts due to related parties* 19,605 24,172 Total current liabilities 21,851 31,328 Operating lease liabilities, non-current — 3,322 Total liabilities 21,851 34,650 * As of December 31, 2021 and 2022, amounts due to and due from related parties represent the loans, receivables and payables that the VIEs had with the Company’s consolidated subsidiaries, which were eliminated in the Company’s consolidated financial statements. Year ended December 31, 2020 2021 2022 US$ US$ US$ Revenues 35,493 47,683 70,635 Net income (loss) 514 751 (5,955 ) Net cash provided by operating activities 2,560 69 1,410 Net cash provided by (used in) investing activities (355 ) (237 ) 53 Net cash provided by (used in) financing activities 68 (68 ) — Net increase (decrease) in cash 2,352 (628 ) 1,825 Cash at the beginning of the year 1,818 4,170 3,542 Cash at the end of the year 4,170 3,542 5,367 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Cash Deposited | Cash consists of deposits at financial institutions. Cash is deposited into financial institutions at the locations listed below: December 31, 2021 2022 US$ US$ Financial institutions in Cayman Islands - Denominated in the US$ 20,419 — Total cash balances held at Cayman financial institutions 20,419 — Financial institutions in the United States - Denominated in the US$ 12,480 47,028 - Denominated in the GBP — 56 Total cash balances held at United States financial institutions 12,480 47,084 Financial institutions in Hong Kong - Denominated in the US$ 18,175 40,001 - Denominated in the EUR 3,038 734 - Denominated in the GBP 3,014 1,635 - Denominated in the JPY 113 316 - Denominated in the HK$ — 67 Total cash balances held at Hong Kong financial institutions 24,340 42,753 Financial institutions in Japan - Denominated in the JPY 1,718 6,640 - Denominated in the US$ 234 1,405 Total cash balances held at Japan financial institutions 1,952 8,045 Financial institutions in the United Kingdom - Denominated in the GBP 335 104 - Denominated in the US$ 35 14 - Denominated in the EUR — 3,158 Total cash balances held at the United Kingdom financial institutions 370 3,276 Financial institutions in the mainland of the PRC - Denominated in the RMB 2,071 1,616 - Denominated in the US$ 509 31,961 - Denominated in the EUR — 1,066 - Denominated in the GBP — 6,870 Total cash balances held at the PRC financial institutions 2,580 41,513 Financial institutions in German y December 31, 2021 2022 US$ US$ - Denominated in the EUR 742 816 - Denominated in the US$ 235 — - Denominated in the GBP 1 — Total cash balances held at Germany financial institutions 978 816 Financial institutions in Vietnam - Denominated in the VND 1 44 - Denominated in the US$ 78 — Total cash balances held at Vietnam financial institutions 79 44 Total cash held at financial institutions 63,198 143,531 |
Summary of Reconciliation Of Cash And Restricted Cash | A reconciliation of cash and restricted cash in the consolidated balance sheets to the amounts in the consolidated statement of cash flows is as follows: December 31, 2021 2022 US$ US$ Cash 63,198 143,531 Restricted cash 664 1,545 Total cash and restricted cash shown in the consolidated statements of cash flows 63,862 145,076 |
Summary of Depreciation on Property And Equipment | Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows: Office and other equipment 3-5 years Vehicles 10 years Logistics, warehouse and other heavy equipment 15 years |
Summary of Consolidated Balance Sheet | The following table summarizes the effect on the consolidated balance sheet as a result of adopting ASC 842. December 31, Adjustments due to adoption of January 1, 2021 ASC 842 2022 US$ US$ US$ ASSETS Prepayments and other current assets 9,080 (2,344 ) (a) 6,736 Operating lease right-of-use — 150,568 (b) 150,568 LIABILITIES Accrued expenses and other current liabilities 19,721 (4 ) (c) 19,717 Current operating lease liabilities — 28,612 (d) 28,612 Operating lease liabilities, non-current — 119,616 (d) 119,616 Capital lease obligations 2,345 (2,345 ) (e) — Finance lease obligations, non-current — 2,345 (e) 2,345 (a) Represents the prepaid rent reclassified to operating lease right-of-use (b) Represents the result of discounting operating lease payments, the reclassification of prepaid rent and deferred rent accrual. (c) Represents the deferred rent accrual reclassified to operating lease right-of-use (d) Represents the recognition of operating lease liabilities, current and non-current. (e) The account caption of “Capital lease obligations” in non-current liabilities was changed to “Finance lease obligations, non-current” |
Summary of Accounts Receivable Balance | One customer individually represents greater than 10.0% of total accounts receivable balance of the Group as of December 31, 2021 and three customers individually represents greater than 10.0% of total accounts receivable balance as of December 31, 2022 December 31, 2021 December 31, 2022 proportion of total accounts receivable balance proportion of total accounts receivable balance Customer A 26.6 % 28.3 % Customer B * 14.5 % Customer C * 10.1 % * Less than 10.0% of total accounts receivable balance as of the year end. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable Net | Accounts receivable, net, consisted of the following: December 31, 2021 2022 US$ US$ Accounts receivable 18,187 27,379 Allowance for doubtful accounts (151 ) (237 ) Accounts Receivable, net 18,036 27,142 |
Schedule of Movement of the Allowance for Doubtful Accounts | The movement of the allowance for doubtful accounts is as follows: Year ended December 31, 2020 2021 2022 US$ US$ US$ Balance as of the beginning of the year (53 ) (64 ) (151 ) Additions charged to bad debt expense (11 ) (87 ) (86 ) Balance as of the end of the year (64 ) (151 ) (237 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Schedule of Inventory | Inventories consisted of the following: December 31, 2021 2022 US$ US$ Products available for sale 56,444 59,829 Goods in transit 24,997 18,509 Inventories 81,441 78,338 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepayments And Other Current Assets [Abstract] | |
Schedule of Prepayments And Other Current Assets | Prepayments and other current assets are consisted of the following: December 31, 2021 2022 US$ US$ Value-added taxes recoverable 564 201 Advances to suppliers 1,407 1,067 Amounts due from third-party payment platforms 3,165 3,814 Deposits 29 29 Prepaid expenses 3,617 1,405 Others 298 1,050 Prepayments and Other Current Assets 9,080 7,566 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property and Equipment Net | Property and equipment, net, as of December 31, 2021 and 2022 consisted of the following: December 31, 2021 2022 US$ US$ Office and other equipment 1,350 1,755 Vehicles 218 263 Logistics, warehouse and other heavy equipment 10,739 13,630 Property and Equipment 12,307 15,648 Less: Accumulated depreciation (1,232 ) (2,595 ) Property and Equipment, net 11,075 13,053 |
Schedule of Carrying Amount of Property and Equipment Net Acquired Under Finance Assets | The carrying amounts of the Group’s property and equipment, net, acquired under finance December 31, 2021 2022 US$ US$ Logistics, warehouse and other heavy equipment 7,296 10,015 Property and Equipment 7,296 10,015 Less: Accumulated depreciation (273 ) (926 ) Property and Equipment, net 7,023 9,089 |
Schedule of Depreciation Expenses on Property and Equipment | Depreciation expenses on property and equipment were allocated to the following expense items: Year ended December 31, 2020 2021 2022 US$ US$ US$ Cost of revenues 188 573 970 General and administrative expenses 39 202 416 Total depreciation expenses 227 775 1,386 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long term debt | December 31, 2021 2022 US$ US$ Unsecured 582 207 Long-term borrowings 582 207 Current portion of long-term borrowings 345 207 Long-term borrowings, excluding current portion 237 — |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | December 31, 2021 2022 US$ US$ Vendor payable 7,395 10,472 Shipping charges payable and others 17,745 21,101 Accounts Payable 25,140 31,573 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | December 31, 2021 2022 US$ US$ Finance lease obligations , current 2,343 2,916 Salary and welfare payables 3,070 3,957 Refundable deposits on GigaCloud Marketplace* 9,230 19,772 Professional fee accruals 900 983 Sales refund liability 1,417 1,532 Obligations under the remorse protection program 437 307 Prepaid consideration of restricted shares** — 517 Liability classified share-based compensation — 110 Other payables 2,324 6,968 Accrued Expenses and Other Current Liabilities 19,721 37,062 * Refundable deposits on GigaCloud Marketplace represent the balance of deposits from Buyers and Sellers which could be withdrawn or used for their future purchase of the Group’s services or merchandise on GigaCloud Marketplace. ** Pursuant to the 2017 Share Incentive Plan, in February 2022, the board of directors resolved to grant 210,898 restricted shares to its employees and non-employee service providers. The amount of US$1,578 prepayment of consideration that received by the Group before cliff vesting of such restricted shares was initially recorded in accrued expenses and other current liabilities. During the year ended December 31, 2022 and with the consummation of the initial public offering (“IPO”), |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities Related to Both Operating and Finance Leases | The gross amounts of assets and liabilities related to both operating and finance leases were as follows: Balance Sheet Caption December 31, 2022 US$ Assets: Operating lease right-of-use Operating lease right-of-use 144,168 Finance lease right-of-use Property and equipment, net 9,089 Total right-of-use 153,257 Balance Sheet Caption December 31, 2022 US$ Liabilities: Current: Operating lease liabilities Current operating lease liabilities (27,653 ) Finance lease liabilities Accrued expenses and other current liabilities (2,916 ) Non-current: Operating lease liabilities Operating lease liabilities, non-current (116,564 ) Finance lease liabilities Finance lease obligations, non-current (867 ) Total lease liabilities (148,000 ) |
Schedule of Lease Cost | The components of lease cost were as follows: Year ended December 31, 2022 US$ Operating lease cost 29,564 Finance lease cost Amortization of right-of-use 653 Interest on lease liabilities 557 Short-term lease costs 307 Total 31,081 |
Schedule of Lease Terms and Discount Rates | Lease terms and discount rates are as follows: December 31, 2022 Weighted average remaining lease term (years): Operating leases 6.05 Finance leases 1.21 Weighted average discount rate: Operating leases 1.36 % Finance leases 11.46 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2022, including rental payments for lease renewal options the Group is reasonably certain to exercise were as follows: Operating leases Finance leases US$ US$ 2023 29,441 3,172 2024 29,543 894 2025 26,466 — 2026 22,867 — 2027 16,673 — 2028 and thereafter 25,713 — Total lease payments 150,703 4,066 Less: imputed interest (6,486 ) (283 ) Present value of lease liabilities 144,217 3,783 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year ended December 31, 2022 US$ Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 27,175 Operating cash flows from finance leases 557 Financing cash flows from finance leases 3,624 Right-of-use a Operating leases 24,270 Finance leases 2,719 a. This supplemental non-cash disclosure for right of use assets obtained in exchange for new lease liabilities refers to an increase in lease liabilities associated with obtaining new right of use assets. |
Schedule of Future Minimum Lease Payments for Capital Leases | The approximate future minimum lease payments under operating leases as of December 31, 2021 follow: Year ended December 31, 2021 US$ 2022 31,054 2023 28,101 2024 24,543 2025 19,421 2026 14,914 2027 8,353 2028 2,637 |
Schedule of Capital Lease Obligations | The Group’s capital lease obligations as of December 31, 2021 are summarized as follows: December 31, 2021 Present value of the Total minimum lease payments US$ US$ Within 1 year 2,343 2,724 After 1 year but within 2 years 2,016 2,154 After 2 years 329 336 4,688 5,214 Less: total future interest expense (526 ) Present value of lease obligations 4,688 Including: Current portion 2,343 Non-current 2,345 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Option, Activity | A summary of the share options for the years ended December 31, 2020 and 2021 is presented below: Number of Weighted Weighted grant-date fair Weighted Aggregate US$ US$ US $ Outstanding at January 1, 2020 2,152,830 0.05 0.40 4.97 753 Granted 2,833,812 0.05 2.30 10 6,376 Repurchased (389,486 ) 0.05 6.25 9.14 (2,415 ) Outstanding at December 31, 2020 4,597,156 0.05 1.08 6.89 4,714 Number of Weighted Weighted grant-date fair Weighted Aggregate US$ US$ US$ Outstanding at December 31, 2020 4,597,156 0.05 1.08 6.89 4,714 Granted 1,160,557 0.05 6.10 10 7,021 Exercised (1,587,086 ) 0.05 6.10 9.19 (9,602 ) Outstanding at December 31, 2021 4,170,627 0.05 0.57 5.64 2,133 The following table summarizes activities of share options for the year ended December 31, 2022: Number of shares Weighted average exercise price Weighted average grant- date fair value Weighted remaining contractual years Aggregate intrinsic value US$ US$ US$ Outstanding at December 31, 2021 4,170,627 0.05 0.57 Granted 385,434 0.05 7.43 Outstanding at December 31, 2022 4,556,061 0.05 1.15 Vested and expect to be vested at December 31, 2022 4,556,061 0.05 1.15 5.02 5,239 Exercisable at December 31, 2022 4,556,061 0.05 1.15 5.02 5,239 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The fair values of share options granted are estimated on the dates of grant using the binomial option pricing model with the following assumptions used: Year ended December 31, Grant dates: 2020 2021 2022 Risk-free rate of return 0.67 % 1.46 % 1.80 % Volatility 45.23 % 44.17 % 43.6 % Expected dividend yield 0.00 % 0.00 % 0.00 % Exercise multiple 2.20/2.80 2.20/2.80 2.20/2.80 Fair value of underlying ordinary share US$2.35 US$6.15 US$7.5 Expected terms 10 years 10 years 10 years |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | Total compensation expenses recognized are allocated to the following expense items. Year ended December 31, 2020 2021 2022 US$ US$ US$ Cost of revenues — — 487 Selling and marketing expenses — — 748 General and administrative expenses — 9,681 7,652 Total share compensation expenses — 9,681 8,887 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity | A summary of the Company’s restricted shares for the year ended December 31, 2022 is presented below: Number of shares Weighted average grant date fair value Outstanding at January 1, 2022 — — Granted 220,898 0.2690 Vested (151,864 ) 0.3906 Outstanding at December 31, 2022 69,034 0.0015 Expect to be vested at December 31, 2022 69,034 0.0015 |
Preferred Shares (Tables)
Preferred Shares (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Temporary Equity | As disclosed in the Note 12, Series E Preferred Shares were converted to the Company’s Class A ordinary shares upon the completion of the Company’s IPO. Series E Preferred Shares US$ Balance as of January 1, 2020 — Issuance for cash 25,000 Issuance costs — Accretion of Preferred Shares 152 Balance as of December 31, 2020 25,152 Accretion of Preferred Shares 1,500 Balance as of December 31, 2021 26,652 Accretion of Preferred Shares 941 Conversion to Class A ordinary shares (27,593 ) Balance as of December 31, 2022 — |
Warrant (Tables)
Warrant (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Summary Of The fair value of the warrant upon the issuance | The fair value of the warrant upon the issuance during the year ended December 31, 2022 is estimated with the following assumptions used respectively: Year ended December 31, 2022 Risk-free rate of return 3.14 % Volatility 46.68 % Expected dividend yield 0.00 % Fair value of underlying ordinary share US$41.41 Expected terms 2.5 years |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule the components of income before income taxes | The components of income before income taxes are as Year ended December 31, 2020 2021 2022 US$ US$ US$ Hong Kong S.A.R. 37,211 35,825 27,832 The PRC, excluding Hong Kong S.A.R. 143 1,685 3,734 The U.S. 7,158 9,346 6,502 Others 763 (9,131 ) (6,904 ) Total 45,275 37,725 31,164 |
Schedule of income tax provision | For the years ended December 31, 2020, 2021 and 2022, the details of income tax expense are set forth below: Year ended December 31, 2020 2021 2022 US$ US$ US$ Current — The U.S. 1,263 2,172 2,706 — The PRC, excluding Hong Kong S.A.R. 5,665 5,750 3,886 — Others 274 415 417 Total current tax expense 7,202 8,337 7,009 Deferred — The U.S. 638 170 186 — The PRC, excluding Hong Kong S.A.R. (20 ) (39 ) (3 ) Total deferred tax expense 618 131 183 Income tax expense 7,820 8,468 7,192 |
Schedule of effective income tax rate reconciliation | The actual income tax expense reported in the consolidated statements of comprehensive income for each of the years ended December 31, 2020, 2021 and 2022 differs from the amount computed by applying the PRC income tax rate of due Year ended December 31, 2020 2021 2022 US$ US$ US$ Computed expected income tax expenses at the PRC tax rate of 25% 11,319 9,431 7,791 Tax rate differential for non-PRC (2,928 ) (134 ) (1,387 ) Preferential tax rate (31 ) (44 ) (509 ) Net operating loss carryforwards expired 6 933 12 Change in unrecognized tax benefits 38 232 254 Non-deductible 4 2 2 Non-taxable (6,140 ) (6,148 ) (4,593 ) Special tax adjustment in the PRC** 5,582 5,589 3,263 Others 24 (435 ) 777 Change in valuation allowance on deferred tax assets (54 ) (958 ) 1,582 Total 7,820 8,468 7,192 * On the basis that the operations of GigaCloud Technology (HongKong) Limited (“Giga HK”) that gave rise to the profits derived by Giga HK were entirely undertaken outside of Hong Kong S.A.R, the corresponding profits are treated as offshore sourced and not subject to Hong Kong S.A.R. profits tax. ** As the profits derived by Giga HK were attributed to the PRC, Gigacloud Suzhou recognized Giga HK offshore sourced profits as taxable income of Gigacloud Suzhou. |
Schedule of deferred tax assets and liabilities | b) Deferred tax assets and deferred tax liabilities December 31, 2021 2022 US$ US$ Net operating losses carryforwards 1,204 2,786 Inventories under the uniform capitalization (UNICAP) rules 808 744 Inventory write-down 619 672 Accrued expenses and other current liabilities 305 308 Operating lease liabilities, current and non-current — 33,494 Others 134 157 Less: valuation allowance (1,204 ) (2,786 ) Total deferred tax assets, net 1,866 35,375 Tax impact of full expensing of qualified property and equipment (2,080 ) (2,370 ) Finance leases — (80 ) Operating lease right-of-use assets — (33,322 ) Total gross deferred income tax liabilities (2,080 ) (35,772 ) Net deferred liabilities (214 ) (397 ) |
Schedule of net deferred liabilities | The deferred taxes noted above are classified as follows in the Group’s consolidated balance sheets: Year ended 2021 2022 US$ US$ Deferred tax assets 72 75 Deferred tax liabilities (286 ) (472 ) Net deferred liabilities (214 ) (397 ) |
Schedule of changes in valuation allowance | Changes in valuation allowance are as follows: Year ended 2021 2022 US$ US$ Balance at the beginning of the year 2,162 1,204 Additions 322 1,643 Decrease (1,280 ) (61 ) Balance at the end of the year 1,204 2,786 |
Schedule of reconciliation of unrecognized tax benefits from continuing operations | A reconciliation of unrecognized tax benefits from continuing operations is as follows: Year ended December 31, 2020 2021 2022 US$ US$ US$ Unrecognized tax benefits, beginning of year 763 801 1,033 Increases 38 232 254 Reclassified from prior-year income tax payable — — 1,607 Unrecognized tax benefits, end of year 801 1,033 2,894 |
Net Income Per Ordinary Share (
Net Income Per Ordinary Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per ordinary share | The following table sets forth the basic and diluted net income per ordinary share computation and provides a reconciliation of the numerator and denominator for the years presented: Year ended December 31, 2020 2021 2022 US$ US$ US$ Numerator: Net income 37,455 29,257 23,972 Net income attributable to preferred shareholders (24,344 ) (18,777 ) (8,352 ) Accretion of Series E Preferred Shares (152 ) (1,500 ) (941 ) Net income per ordinary share calculation 12,959 8,980 14,679 Denominator: Weighted average number of ordinary shares outstanding- Basic and diluted 9,495,844 10,248,079 24,412,314 Net income per ordinary share attributable to ordinary shareholders - basic and diluted 1.36 0.88 0.60 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disaggregation of Revenue [Abstract] | |
Schedule of revenues are disaggregated by major products and service lines and timing of revenue recognition | The Group’s revenues are disaggregated by major products/service lines and timing of revenue recognition. Detailed Year ended December 31, Major products/services lines 2020 2021 2022 US$ US$ US$ Service revenues Platform commission 3,888 4,814 6,872 Ocean transportation service 12,537 36,257 37,957 Warehousing service 3,310 10,498 16,242 Last-mile delivery service 26,294 33,693 62,745 Others 14,101 13,070 16,812 Total service revenues 60,130 98,332 140,628 Product revenues Product sales to B 39,858 50,699 49,128 Product sales to C 53,388 76,900 68,633 Off-platform 93,246 127,599 117,761 GigaCloud 1P 122,102 188,266 231,682 Total product revenues 215,348 315,865 349,443 Revenues 275,478 414,197 490,071 Year ended December 31, Timing of revenue recognition 2020 2021 2022 US$ US$ US$ Revenue from goods or services transferred to customers over time 48,148 89,986 121,951 Revenue from goods or services transferred to customers at a point in time 227,330 324,211 368,120 Revenues 275,478 414,197 490,071 |
Schedule of changes in the contract liabilities | Changes in the contract liabilities balances for the years ended December 31, 2020, 2021 and 2022 are as follows: Year ended December 31, 2020 2021 2022 US$ US$ US$ Balance as of beginning of the year 362 3,424 3,690 Revenue recognized from opening balance of contract liabilities (362 ) (3,424 ) (3,690 ) Increase due to cash received 158,696 199,271 302,474 Revenue recognized from cash received during the year (155,283 ) (195,580 ) (300,439 ) Foreign exchange effect 11 (1 ) (34 ) Balance as of end of the year 3,424 3,690 2,001 |
Description Of Business And O_3
Description Of Business And Organization - Schedule Of Consolidated Assets And Liabilities Information Of Group Variable Interest Entity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule Of Consolidated Balance Sheets Income Statement And Cash Flows Of Variable Interest Entity [Line Items] | ||||
Cash | $ 143,531 | $ 63,198 | ||
Accounts receivable, net | 27,142 | 18,036 | ||
Inventories | 78,338 | 81,441 | ||
Prepayments and other current assets | 7,566 | 9,080 | ||
Total current assets | 258,122 | 172,419 | ||
Property and equipment, net | 13,053 | 11,075 | ||
Operating lease right-of-use assets | 144,168 | |||
Other non-current assets | 3,182 | 3,211 | ||
Total assets | 418,600 | 186,777 | ||
Contract liabilities | 2,001 | 3,690 | ||
Current operating lease liabilities | 27,653 | |||
Income tax payable | 4,142 | 8,148 | ||
Total current liabilities | 102,638 | 57,044 | ||
Operating lease liabilities, non-current | 116,564 | |||
Total liabilities | 223,435 | 60,945 | ||
Revenues | 490,071 | 414,197 | $ 275,478 | |
Net income (loss) | 23,972 | 29,257 | 37,455 | |
Net cash provided by operating activities | 49,656 | 8,556 | 33,284 | |
Net cash provided by (used in) investing activities | (709) | (1,825) | (647) | |
Net cash provided by (used in) financing activities | 31,887 | (2,956) | 23,272 | |
Cash and restricted cash at the beginning of the year | 63,862 | 62,197 | 5,553 | |
Cash and restricted cash at the end of the year | 145,076 | 63,862 | 62,197 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule Of Consolidated Balance Sheets Income Statement And Cash Flows Of Variable Interest Entity [Line Items] | ||||
Cash | 5,367 | 3,542 | ||
Accounts receivable, net | 2,959 | 2,241 | ||
Inventories | 9,551 | 9,933 | ||
Amounts due from related parties | [1] | 1,249 | 1,271 | |
Prepayments and other current assets | 1,277 | 2,386 | ||
Total current assets | 20,403 | 19,373 | ||
Property and equipment, net | 548 | 660 | ||
Operating lease right-of-use assets | 5,398 | 0 | ||
Other non-current assets | 890 | 0 | ||
Total assets | 27,239 | 20,033 | ||
Accounts Payable | 4,185 | 1,433 | ||
Contract liabilities | 385 | 394 | ||
Current operating lease liabilities | 1,864 | 0 | ||
Income tax payable | 280 | 78 | ||
Accrued expenses and other current liabilities | 442 | 341 | ||
Total current liabilities | 31,328 | 21,851 | ||
Amounts due to related parties | [1] | 24,172 | 19,605 | |
Operating lease liabilities, non-current | 3,322 | 0 | ||
Total liabilities | 34,650 | 21,851 | ||
Revenues | 70,635 | 47,683 | 35,493 | |
Net income (loss) | (5,955) | 751 | 514 | |
Net cash provided by operating activities | 1,410 | 69 | 2,560 | |
Net cash provided by (used in) investing activities | 53 | (237) | (355) | |
Net cash provided by (used in) financing activities | (68) | 68 | ||
Net increase (decrease) in cash | 1,825 | (628) | 2,352 | |
Cash and restricted cash at the beginning of the year | 3,542 | 4,170 | 1,818 | |
Cash and restricted cash at the end of the year | $ 5,367 | $ 3,542 | $ 4,170 | |
[1]As of December 31, 2021 and 2022, amounts due to and due from related parties represent the loans, receivables and payables that the VIEs had with the Company’s consolidated subsidiaries, which were eliminated in the Company’s consolidated financial statements. |
Description Of Business And O_4
Description Of Business And Organization - Additional Information (Detail) | Feb. 01, 2021 |
Suzhou GigaCloud [Member] | |
Schedule Of Consolidated Balance Sheets Income Statement And Cash Flows Of Variable Interest Entity [Line Items] | |
Business acquisition, percentage of voting interests acquired | 100% |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies - Summary of Cash Deposited (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents, at Carrying Value | $ 143,531 | $ 63,198 |
KY [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 20,419 | |
KY [Member] | USD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 20,419 | |
US [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 47,084 | 12,480 |
US [Member] | USD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 47,028 | 12,480 |
US [Member] | GBP [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 56 | |
HK [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 42,753 | 24,340 |
HK [Member] | USD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 40,001 | 18,175 |
HK [Member] | EUR [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 734 | 3,038 |
HK [Member] | GBP [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 1,635 | 3,014 |
HK [Member] | JPY [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 316 | 113 |
HK [Member] | HKD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 67 | |
JP [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 8,045 | 1,952 |
JP [Member] | USD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 1,405 | 234 |
JP [Member] | JPY [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 6,640 | 1,718 |
GB [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 3,276 | 370 |
GB [Member] | USD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 14 | 35 |
GB [Member] | EUR [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 3,158 | |
GB [Member] | GBP [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 104 | 335 |
CN [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 41,513 | 2,580 |
CN [Member] | USD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 31,961 | 509 |
CN [Member] | EUR [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 1,066 | |
CN [Member] | GBP [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 6,870 | |
CN [Member] | CNY [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 1,616 | 2,071 |
DE [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 816 | 978 |
DE [Member] | USD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 235 | |
DE [Member] | EUR [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 816 | 742 |
DE [Member] | GBP [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 1 | |
VN [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 44 | 79 |
VN [Member] | USD [Member] | ||
Cash and Cash Equivalents, at Carrying Value | 78 | |
VN [Member] | VND [Member] | ||
Cash and Cash Equivalents, at Carrying Value | $ 44 | $ 1 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies - Summary of Reconciliation Of Cash And Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 143,531 | $ 63,198 | ||
Restricted Cash and Cash Equivalents, Current | 1,545 | 664 | ||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 145,076 | $ 63,862 | $ 62,197 | $ 5,553 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies - Summary of Depreciation on Property And Equipment (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Office and Other Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Office and Other Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 years |
Logistics, Warehouse and Other Heavy Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 15 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Jul. 05, 2022 | Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) Segment | Dec. 31, 2020 USD ($) Segment | |
Accounting Policies [Line Items] | ||||
Advetising expenses | $ 1,530 | $ 1,851 | $ 1,075 | |
Defined contribution plan as a percentage of basic compensation | 25.50% | 25.50% | 25.50% | |
Defined contribution plan costs | $ 2,610 | $ 1,695 | $ 1,689 | |
Number of operating segments | Segment | 1 | 1 | 1 | |
Percentage of after tax profits to be appropriated to statutory fund | 10% | 10% | 10% | |
Statutory surplus fund required as a percentage of registered capital | 50% | 50% | 50% | |
Restricted cash and cash equivalents | $ 1,545 | $ 664 | ||
Impairment of long lived assets | 0 | 0 | $ 0 | |
Transaction realized gain (loss) | 4,900 | 2,000 | 1,000 | |
Government [Member] | ||||
Accounting Policies [Line Items] | ||||
Government grants | $ 1,085 | $ 0 | $ 0 | |
Purchases [Member] | Supplier Concentration Risk [Member] | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | |||
Minimum [Member] | No Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | 10% | 10% | |
Minimum [Member] | No Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | |||
Minimum [Member] | No Customer [Member] | Purchases [Member] | Supplier Concentration Risk [Member] | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | 10% | ||
Minimum [Member] | One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | |||
UNITED STATES [Member] | United States of America, Dollars [Member] | ||||
Accounting Policies [Line Items] | ||||
Restricted cash and cash equivalents | $ 1,545 | $ 664 | ||
Redeemable Convertible Preferred Stock [Member] | ||||
Accounting Policies [Line Items] | ||||
Stockholders equity note stock split conversion ratio | 0.002 | |||
Common Stock [Member] | ||||
Accounting Policies [Line Items] | ||||
Stockholders equity note stock split conversion ratio | 0.002 | |||
Share-Based Payment Arrangement, Option [Member] | 2008 Share Incentive Plan [Member] | ||||
Accounting Policies [Line Items] | ||||
Stockholders equity note stock split conversion ratio | 0.002 | |||
Share-Based Payment Arrangement, Option [Member] | 2017 Share Incentive Plan [Member] | ||||
Accounting Policies [Line Items] | ||||
Stockholders equity note stock split conversion ratio | 0.002 | |||
Restricted Stock Units (RSUs) [Member] | 2008 Share Incentive Plan [Member] | ||||
Accounting Policies [Line Items] | ||||
Stockholders equity note stock split conversion ratio | 0.002 | |||
Restricted Stock Units (RSUs) [Member] | 2017 Share Incentive Plan [Member] | ||||
Accounting Policies [Line Items] | ||||
Stockholders equity note stock split conversion ratio | 0.002 |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies - Summary of Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | |
Assets | ||||
Prepayments and other current assets | $ 7,566 | $ 9,080 | ||
Operating lease right-of-use assets | 144,168 | |||
LIABILITIES | ||||
Accrued expenses and other current liabilities | 19,721 | |||
Current operating lease liabilities | 27,653 | |||
Operating lease liabilities, non-current | 116,564 | |||
Capital lease obligations | 2,345 | |||
Finance lease obligations, non-current | $ 867 | 2,345 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accounting Standards Update 2016-02 [Member] | ||||
Assets | ||||
Prepayments and other current assets | [1] | (2,344) | ||
Operating lease right-of-use assets | [2] | 150,568 | ||
LIABILITIES | ||||
Accrued expenses and other current liabilities | [3] | (4) | ||
Current operating lease liabilities | [4] | 28,612 | ||
Operating lease liabilities, non-current | [4] | 119,616 | ||
Capital lease obligations | [5] | (2,345) | ||
Finance lease obligations, non-current | [5] | $ 2,345 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Assets | ||||
Prepayments and other current assets | $ 6,736 | |||
Operating lease right-of-use assets | 150,568 | |||
LIABILITIES | ||||
Accrued expenses and other current liabilities | 19,717 | |||
Current operating lease liabilities | 28,612 | |||
Operating lease liabilities, non-current | 119,616 | |||
Finance lease obligations, non-current | $ 2,345 | |||
[1]Represents the prepaid rent reclassified to operating lease right-of-use assets.[2]Represents the result of discounting operating lease payments, the reclassification of prepaid rent and deferred rent accrual.[3]Represents the deferred rent accrual reclassified to operating lease right-of-use assets.[4]Represents the recognition of operating lease liabilities, current and non-current.[5]The account caption of “Capital lease obligations” in non-current liabilities was changed to “Finance lease obligations, non-current” upon adoption of ASC 842. |
Summary Of Significant Accoun_9
Summary Of Significant Accounting Policies - Summary of Accounts Receivable Balance (Detail) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Customer A [Member] | ||
Concentration Risk, Percentage | 28.30% | 26.60% |
Customer B [Member] | ||
Concentration Risk, Percentage | 14.50% | |
Customer C [Member] | ||
Concentration Risk, Percentage | 10.10% |
Accounts Receivable, Net - Sch
Accounts Receivable, Net - Schedule of Accounts Receivable Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable, Net [Abstract] | ||||
Accounts receivable | $ 27,379 | $ 18,187 | ||
Allowance for doubtful accounts | (237) | (151) | $ (64) | $ (53) |
Accounts Receivable, net | $ 27,142 | $ 18,036 |
Accounts Receivable, Net - S_2
Accounts Receivable, Net - Schedule of Movement of the Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable Allowance For Credit Loss [Line Items] | |||
Balance as of the beginning of the year | $ (151) | $ (64) | $ (53) |
Additions charged to bad debt expense | (86) | (87) | (11) |
Balance as of the end of the year | $ (237) | $ (151) | $ (64) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories [Abstract] | ||
Products available for sale | $ 59,829 | $ 56,444 |
Goods in transit | 18,509 | 24,997 |
Inventories | $ 78,338 | $ 81,441 |
Prepayments and Other Current_3
Prepayments and Other Current Assets - Schedule of Prepayments And Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Prepayments And Other Current Assets [Line Items] | ||
Value-added taxes recoverable | $ 201 | $ 564 |
Advances to suppliers | 1,067 | 1,407 |
Amounts due from third-party payment platforms | 3,814 | 3,165 |
Deposits | 29 | 29 |
Prepaid expenses | 1,405 | 3,617 |
Others | 1,050 | 298 |
Prepayments and Other Current Assets | $ 7,566 | $ 9,080 |
Prepayments and Other Current_4
Prepayments and Other Current Assets - Additional information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepayments And Other Current Assets [Abstract] | ||
Deposits from lessors for warehouse and equipment non current | $ 3,182 | $ 3,211 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 15,648 | $ 12,307 |
Less: Accumulated depreciation | (2,595) | (1,232) |
Property and Equipment, net | 13,053 | 11,075 |
Office and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 1,755 | 1,350 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 263 | 218 |
Logistics, warehouse and other heavy equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 13,630 | $ 10,739 |
Property and Equipment, Net -_2
Property and Equipment, Net - Schedule of Carrying Amount of Property and Equipment Net Acquired Under Capital Assets (Detail) - Logistics, warehouse and other heavy equipment [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Property Plant And Equipment Under Capital Leases [Line Items] | ||
Property and Equipment | $ 10,015 | $ 7,296 |
Less: Accumulated depreciation | (926) | (273) |
Property and Equipment, net | $ 9,089 | $ 7,023 |
Property and Equipment, Net -_3
Property and Equipment, Net - Schedule of Depreciation Expenses on Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Depreciation Expenses On Property Plant And Equipment [Line Items] | |||
Depreciation | $ 1,386 | $ 775 | $ 227 |
Cost of revenues [Member] | |||
Schedule Of Depreciation Expenses On Property Plant And Equipment [Line Items] | |||
Depreciation | 970 | 573 | 188 |
General and administrative expenses [Member] | |||
Schedule Of Depreciation Expenses On Property Plant And Equipment [Line Items] | |||
Depreciation | $ 416 | $ 202 | $ 39 |
Borrowings - Schedule of Long t
Borrowings - Schedule of Long term debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Unsecured bank loans | $ 207 | $ 582 |
Long-term borrowings | 207 | 582 |
Current portion of long-term borrowings | 207 | 345 |
Long-term borrowings, excluding current portion | $ 0 | $ 237 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Repayments of Unsecured Debt | $ 312 | $ 430 | |||
HSBC [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured Debt | $ 68 | ||||
MIZUHO Bank [Member] | Long Term Loan One [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-Term Debt, Gross | $ 375 | ||||
MIZUHO Bank [Member] | Long Term Loan Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-Term Debt, Gross | $ 756 | ||||
Unsecured Debt [Member] | HSBC [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | ||||
Long-Term Debt, Maturities, Repayment Terms | August 25, 2021 |
Accounts Payable - Schedule of
Accounts Payable - Schedule of accounts payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Vendor payable | $ 10,472 | $ 7,395 |
Shipping charges payable and others | 21,101 | 17,745 |
Accounts Payable | $ 31,573 | $ 25,140 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Accounts Payable and Other Liabilities Disclosure, Current [Line Items] | ||
Finance lease obligations, current | $ 2,916 | $ 2,343 |
Salary and welfare payables | 3,957 | 3,070 |
Refundable deposits on GigaCloud Marketplace | 19,772 | 9,230 |
Professional fee accruals | 983 | 900 |
Sales refund liability | 1,532 | 1,417 |
Obligations under the remorse protection program | 307 | 437 |
Prepaid consideration of restricted shares | 517 | 0 |
Liability classified share-based compensation | 110 | 0 |
Other payables | 6,968 | 2,324 |
Accrued Expenses and Other Current Liabilities | $ 37,062 | $ 19,721 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Liabilities (Detail) (Parentheticals) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Accounts Payable and Other Liabilities Disclosure, Current [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 385,434 | 1,160,557 | 2,833,812 | |
Restricted Stock [Member] | ||||
Schedule of Accounts Payable and Other Liabilities Disclosure, Current [Line Items] | ||||
Value of stock related to Restricted Stock Awards issued during the period | $ 1,578 | |||
Number of shares issued during the period related to restricted stock awards | 141,864 | |||
APIC, share based payment arrangement, restricted stock unit, increase for cost recognition | $ 1,061 | |||
Restricted Stock [Member] | Accrued expenses and other current liabilities [Member] | ||||
Schedule of Accounts Payable and Other Liabilities Disclosure, Current [Line Items] | ||||
Workers compensation liability current | $ 517 | |||
Employee And Non Employee [Member] | Restricted Stock [Member] | ||||
Schedule of Accounts Payable and Other Liabilities Disclosure, Current [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 210,898 |
Leases - Schedule of Assets and
Leases - Schedule of Assets and Liabilities Related to Both Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets [Abstract] | ||
Operating lease right-of-use assets | $ 144,168 | |
Finance lease right-of-use assets | 9,089 | |
Total right-of-use assets | $ 153,257 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | |
Liabilities, Current [Abstract] | ||
Operating lease liabilities | $ (27,653) | |
Finance lease liabilities | $ (2,916) | $ (2,343) |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs without recourse to the Company of US$341 and US$442 as of December 31, 2021 and 2022, respectively) | |
Liabilities, Noncurrent [Abstract] | ||
Operating lease liabilities | $ (116,564) | |
Finance lease liabilities | (867) | $ (2,345) |
Total lease liabilities | $ (148,000) |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Lease Cost [Line Items] | |
Operating lease cost | $ 29,564 |
Amortization of right-of-use assets | 653 |
Interest on lease liabilities | 557 |
Short-term lease costs | 307 |
Total | $ 31,081 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Terms and Discount Rates (Detail) | Dec. 31, 2022 |
Lease terms and discount rates [Line Items] | |
Operating leases | 6 years 18 days |
Finance leases | 1 year 2 months 15 days |
Operating leases | 1.36% |
Finance leases | 11.46% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Operating leases | |
2023 | $ 29,441 |
2024 | 29,543 |
2025 | 26,466 |
2026 | 22,867 |
2027 | 16,673 |
2028 and thereafter | 25,713 |
Total lease payments | 150,703 |
Less imputed interest | (6,486) |
Present value of lease liabilities | 144,217 |
Finance leases | |
2023 | 3,172 |
2024 | 894 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 and thereafter | 0 |
Total lease payments | 4,066 |
Finance Lease Interest Expenses | (283) |
Present value of lease liabilities | $ 3,783 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Supplemental cash flow information related to leases [Line Items] | |
Operating cash flows from operating leases | $ 27,175 |
Operating cash flows from finance leases | 557 |
Financing cash flows from finance leases | 3,624 |
Operating leases | 24,270 |
Finance leases | $ 2,719 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments for Capital Leases (Detail) $ in Thousands | Dec. 31, 2021 USD ($) |
Schedule Of Future Minimum Lease Payments For Capital Leases [Line Items] | |
2022 | $ 31,054 |
2023 | 28,101 |
2024 | 24,543 |
2025 | 19,421 |
2026 | 14,914 |
2027 | 8,353 |
2028 | $ 2,637 |
Leases - Schedule of Capital Le
Leases - Schedule of Capital Lease Obligations (Detail) $ in Thousands | Dec. 31, 2021 USD ($) |
Lessee, Lease, Description [Line Items] | |
Present value of the minimum lease payments, Within 1 year | $ 2,343 |
Present value of the minimum lease payments, After 1 year but within 2 years | 2,016 |
Present value of the minimum lease payments, After 2 years | 329 |
Present value of the minimum lease payments | 4,688 |
Total minimum lease payments, Within 1 year | 2,724 |
Total minimum lease payments, After 1 year but within 2 years | 2,154 |
Total minimum lease payments, After 2 years | 336 |
Total minimum lease payments | 5,214 |
Total minimum lease payments, Less: total future interest expense | (526) |
Present value of lease obligations | 4,688 |
Including: | |
Current portion | 2,343 |
Non-current portion | $ 2,345 |
Preferred Shares - Schedule of
Preferred Shares - Schedule of Temporary Equity (Detail) - Series E Preferred Stock [Member] - Redeemable Convertible Preferred Stock [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Temporary Equity [Line Items] | |||
Beginning balance | $ 26,652 | $ 25,152 | $ 0 |
Issuance for cash | 25,000 | ||
Issuance costs | 0 | ||
Accretion of Preferred Shares | 941 | 1,500 | 152 |
Conversion to Class A ordinary shares | (27,593) | ||
Ending balance | $ 0 | $ 26,652 | $ 25,152 |
Preferred Shares - Additional I
Preferred Shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||||
Nov. 24, 2020 | Mar. 27, 2017 | Aug. 01, 2014 | Feb. 28, 2013 | Nov. 23, 2006 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Feb. 25, 2009 | Sep. 01, 2006 | |
Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for a shareholder to purchase shares from other shareholders | 51% | 51% | 51% | ||||||||||
Right To Purchase Additional Shares [Member] | Adjustment Agreement [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Minimum revenue to be achieved for the adjustment not to be triggered | $ 6,300 | $ 79,200 | |||||||||||
Premoney amount of valuation | $ 144,953 | ||||||||||||
Subscription price | $ 3,000 | ||||||||||||
Firedragon Holdings Inc [Member] | Comptree International Limited [Member] | Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock issued during the period for acquisition shares | 2,905,802 | ||||||||||||
DCM Four [Member] | Comptree International Limited [Member] | Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock issued during the period for acquisition shares | 964,981 | ||||||||||||
DCM Four Affiliates [Member] | Comptree International Limited [Member] | Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock issued during the period for acquisition shares | 24,540 | ||||||||||||
DT E Commerce Investment Limited [Member] | Comptree International Limited [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Business combination percentage of voting interests acquired | 100% | ||||||||||||
Series A Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 600 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.04% | ||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 122,000 | ||||||||||||
Debt Instrument, Convertible, Conversion Price | $ 50 | ||||||||||||
Preferred Stock, Value, Subscriptions | $ 6,100 | ||||||||||||
Debt Conversion, Original Debt, Amount | $ 610 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 12,190 | ||||||||||||
Sale of stock issue price per share | $ 50 | ||||||||||||
Series A Preferred Stock [Member] | DCM IV [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 83,477 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 8,322 | ||||||||||||
Series A Preferred Stock [Member] | DCM IV Affiliates [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 2,123 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 211 | ||||||||||||
Series A Preferred Stock [Member] | DT [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 36,400 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 3,657 | ||||||||||||
Series B Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 2,500 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0% | ||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 6,284,173 | ||||||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.32 | ||||||||||||
Preferred Stock, Value, Subscriptions | $ 2,000 | ||||||||||||
Debt Conversion, Original Debt, Amount | $ 2,500 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 7,855,214 | ||||||||||||
Sale of stock issue price per share | $ 0.32 | ||||||||||||
Stock Repurchased During Period, Shares | 5,718,842 | ||||||||||||
Series B Preferred Stock [Member] | Larry Lei Wu [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 1,571,043 | ||||||||||||
Debt Instrument, Convertible, Conversion Price | $ 0.32 | ||||||||||||
Preferred Stock, Value, Subscriptions | $ 500 | ||||||||||||
Series B Preferred Stock [Member] | DCM IV [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 4,462,264 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 5,373,699 | ||||||||||||
Stock Repurchased During Period, Shares | 4,075,522 | ||||||||||||
Series B Preferred Stock [Member] | DCM IV Affiliates [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 113,478 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 136,656 | ||||||||||||
Stock Repurchased During Period, Shares | 103,643 | ||||||||||||
Series B Preferred Stock [Member] | DT [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred Stock, Shares Subscribed but Unissued | 1,708,431 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 2,344,859 | ||||||||||||
Stock Repurchased During Period, Shares | 1,539,677 | ||||||||||||
Series C Preferred Stock [Member] | DT E Commerce Investment Limited [Member] | Comptree International Limited [Member] | Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock issued during the period for acquisition shares | 4,358,702 | ||||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Drag Along Rights [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of days of notice to be given to shareholders by the company for share purchase | 5 days | 5 days | 5 days | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for conversion into common stock | 75% | 75% | 75% | ||||||||||
Preferred stock dividend rate percentage | 8% | 8% | 8% | ||||||||||
Preferred stock liquidation preference percentage | 100% | 100% | 100% | ||||||||||
Conversion ratio | 1 | 1 | 1 | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | Drag Along Rights [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for a shareholder to purchase shares from other shareholders | 75% | 75% | 75% | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | Drag Along Rights [Member] | Triggering Of Rights Before The Fifth Anniversary [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Estimated minimum proceeds from preferred stock | $ 40,000 | $ 40,000 | $ 40,000 | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series B Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for conversion into common stock | 75% | 75% | 75% | ||||||||||
Preferred stock dividend rate percentage | 8% | 8% | 8% | ||||||||||
Preferred stock liquidation preference percentage | 100% | 100% | 100% | ||||||||||
Conversion ratio | 1 | 1 | 1 | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series B Preferred Stock [Member] | Drag Along Rights [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for a shareholder to purchase shares from other shareholders | 75% | 75% | 75% | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series B Preferred Stock [Member] | Drag Along Rights [Member] | Triggering Of Rights Before The Fifth Anniversary [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Estimated minimum proceeds from preferred stock | $ 40,000 | $ 40,000 | $ 40,000 | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series C Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for conversion into common stock | 75% | 75% | 75% | ||||||||||
Preferred stock dividend rate percentage | 8% | 8% | 8% | ||||||||||
Preferred stock liquidation preference percentage | 100% | 100% | 100% | ||||||||||
Conversion ratio | 1 | 1 | 1 | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series C Preferred Stock [Member] | Drag Along Rights [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for a shareholder to purchase shares from other shareholders | 75% | 75% | 75% | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series C Preferred Stock [Member] | Drag Along Rights [Member] | Triggering Of Rights Before The Fifth Anniversary [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Estimated minimum proceeds from preferred stock | $ 40,000 | $ 40,000 | $ 40,000 | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series D Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for conversion into common stock | 75% | 75% | 75% | ||||||||||
Preferred stock dividend rate percentage | 8% | 8% | 8% | ||||||||||
Preferred stock liquidation preference percentage | 100% | 100% | 100% | ||||||||||
Conversion ratio | 1 | 1 | 1 | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series D Preferred Stock [Member] | Drag Along Rights [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for a shareholder to purchase shares from other shareholders | 75% | 75% | 75% | ||||||||||
Number of days of notice to be given to shareholders by the company for share purchase | 5 days | 5 days | 5 days | ||||||||||
Nonredeemable Convertible Preferred Stock [Member] | Series D Preferred Stock [Member] | Drag Along Rights [Member] | Triggering Of Rights Before The Fifth Anniversary [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Estimated minimum proceeds from preferred stock | $ 150,000 | $ 150,000 | $ 150,000 | ||||||||||
Convertible Preferred Stock [Member] | Hong Kong Red Star Macalline Universal Machine Holdings [Member] | Series D Convertible Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Sale of stock issue price per share | $ 2.74 | ||||||||||||
Stock issued during the peiod shares new issues | 2,943,786 | ||||||||||||
Proceeds from the issue of convertible preferred stock | $ 8,053 | ||||||||||||
Redeemable Convertible Preferred Stock [Member] | Series E Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for conversion into common stock | 75% | 75% | 75% | ||||||||||
Preferred stock dividend rate percentage | 8% | 8% | 8% | ||||||||||
Temporary equity liquidation percentage | 100% | 100% | 100% | ||||||||||
Temporary equity redemption price percentage | 100% | 100% | 100% | ||||||||||
Temporary equity interest rate percentage on redemption price | 6% | 6% | 6% | ||||||||||
Conversion ratio | 1 | 1 | 1 | ||||||||||
Redeemable Convertible Preferred Stock [Member] | Series E Preferred Stock [Member] | Drag Along Rights [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of votes in terms of value required for a shareholder to purchase shares from other shareholders | 75% | 75% | 75% | ||||||||||
Number of days of notice to be given to shareholders by the company for share purchase | 5 days | 5 days | 5 days | ||||||||||
Redeemable Convertible Preferred Stock [Member] | Series E Preferred Stock [Member] | Drag Along Rights [Member] | Triggering Of Rights Before The Fifth Anniversary [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Estimated minimum proceeds from preferred stock | $ 150,000 | $ 150,000 | $ 150,000 | ||||||||||
Redeemable Convertible Preferred Stock [Member] | Honey SuckLe Creek Limited [Member] | Series E Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Temporary equity stock shares issued during the period shares | 2,719,802 | ||||||||||||
Redeemable Convertible Preferred Stock [Member] | Huay Yuan International Limited [Member] | Series E Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Temporary equity stock shares issued during the period shares | 1,279,907 | ||||||||||||
Redeemable Convertible Preferred Stock [Member] | Honey Suckle Creek Limited And Huay Yuan International Limited [Member] | Series E Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Proceeds from Issuance of Redeemable Convertible Preferred Stock | $ 25,000 | ||||||||||||
Temporary equity stock shares issued during the period shares | 3,999,709 | ||||||||||||
Temporary equity shares issued price per share | $ 6.25 |
Ordinary Shares - Additional
Ordinary Shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 18, 2022 | Jul. 11, 2021 | Aug. 31, 2022 | Jul. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 17, 2022 | Dec. 31, 2019 | |
Options outstanding | 4,556,061 | 4,170,627 | 4,597,156 | 2,152,830 | ||||||
Common Stock, Shares Authorized | 38,572,025 | 38,572,025 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.05 | $ 0.05 | ||||||||
Common Stock, Shares, Issued | 11,082,930 | 9,495,844 | ||||||||
Common Stock, Shares, Outstanding | 11,082,930 | 9,495,844 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 1,587,086 | |||||||||
Share-Based Payment Arrangement, Expense | $ 59 | $ 8,887 | $ 9,681 | $ 0 | ||||||
General and Administrative Expense [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | $ 7,652 | $ 9,681 | 0 | |||||||
Restricted Stock [Member] | ||||||||||
Number of shares issued during the period related to Restricted Stock Awards | 141,864 | |||||||||
Restricted Stock [Member] | Three Year [Member] | ||||||||||
Number of shares issued during the period related to Restricted Stock Awards | 141,864 | |||||||||
IPO [Member] | ||||||||||
Stock issued during the peiod shares new issues | 3,381,000 | |||||||||
Sale of stock, price per share | $ 12.25 | |||||||||
Net proceeds | $ 33,400 | |||||||||
Underwriting commissions and other offering expenses | 8,000 | |||||||||
Share-Based Payment Arrangement, Expense | $ 8,825 | |||||||||
Over-Allotment Option [Member] | ||||||||||
Stock issued during the peiod shares new issues | 441,000 | |||||||||
Common Class A [Member] | ||||||||||
Voting rights of common stock | one vote | |||||||||
Common Class B [Member] | ||||||||||
Voting rights of common stock | ten votes | |||||||||
Conversion Of Temporary Equity Series E Preferred Shares to Class A Ordinary Shares [Member] | ||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.05 | |||||||||
Trust Holdcos [Member] | ||||||||||
Number of common stock held in a trust | 4,765,903 | |||||||||
Restricted shares outstanding | 210,898 | |||||||||
Options outstanding | 4,555,005 | |||||||||
Mr.Larry Lei Wu [Member] | Conversion Of Series B Redeemable Convertible Preferred Shares to ClassB Ordinary Shares [Member] | ||||||||||
Conversion of Stock, Shares Converted (Shares) | 1,571,043 | |||||||||
Conversion of stock, shares issued | 7,755,689 | |||||||||
Conversion of stock, description | one-for-one-basis | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.05 | |||||||||
Other Shareholders [Member] | Conversion Of Temporary Equity Series E Preferred Shares to Class A Ordinary Shares [Member] | ||||||||||
Conversion of Stock, Shares Converted (Shares) | 3,999,709 | |||||||||
Conversion of stock, shares issued | 8,119,882 | |||||||||
Conversion of stock, description | one-for-one-basis | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.05 | |||||||||
Other Shareholders [Member] | Conversion Of Preferred Shares To Class A Ordinary Shares [Member] | ||||||||||
Conversion of Stock, Shares Converted (Shares) | 19,856,932 | |||||||||
Common Stock [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 1,587,086 | 1,587,086 | ||||||||
Stock Issued During Period, Shares, Issued for Services | 26,738 | 26,738 | ||||||||
Stock Issued During Period, Value, Issued for Services | $ 2 | $ 2 | ||||||||
Share-Based Payment Arrangement, Expense | $ 0 | |||||||||
Common Stock [Member] | General and Administrative Expense [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | $ 199 | $ 0 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Payment Arrangement, Option, Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Payment Arrangement [Abstract] | ||||
Number of Share options ,Beginning | 4,170,627 | 4,597,156 | 2,152,830 | |
Number of Share options , Granted | 385,434 | 1,160,557 | 2,833,812 | |
Number of Share options , Repurchased | (389,486) | |||
Number of Share options , Exercised | (1,587,086) | |||
Number of Share options , Ending | 4,556,061 | 4,170,627 | 4,597,156 | 2,152,830 |
Number of Share options , Vested and expect to be vested | 4,556,061 | |||
Number of Share options ,Exercisable | 4,556,061 | |||
Weighted Average Exercise Price , Beginning | $ 0.05 | $ 0.05 | $ 0.05 | |
Weighted Average Exercise Price , Granted | 0.05 | 0.05 | 0.05 | |
Weighted Average Exercise Price , Repurchased | 0.05 | |||
Weighted Average Exercise Price , Exercised | 0.05 | |||
Weighted Average Exercise Price , Ending | 0.05 | 0.05 | 0.05 | $ 0.05 |
Weighted Average Exercise Price , Vested and expect to be vested | 0.05 | |||
Weighted Average Exercise Price , Exercisable | 0.05 | |||
Weighted Average Fair value at grant date , Beginning | 0.57 | 1.08 | 0.4 | |
Weighted Average Fair value at grant date , Granted | 7.43 | 6.1 | 2.3 | |
Weighted Average Fair value at grant date , Repurchased | 6.25 | |||
Weighted Average Fair value at grant date , Exercised | 6.1 | |||
Weighted Average Fair value at grant date , Ending | 1.15 | $ 0.57 | $ 1.08 | $ 0.4 |
Weighted Average Fair value at grant date , Vested and expect to be vested | 1.15 | |||
Weighted Average Fair value at grant date , Exercisable | $ 1.15 | |||
Weighted remaining contractual years | 5 years 7 months 20 days | 6 years 10 months 20 days | 4 years 11 months 19 days | |
Weighted remaining contractual years, Granted | 10 years | 10 years | ||
Weighted remaining contractual years, Repurchased | 9 years 1 month 20 days | |||
Weighted remaining contractual years, Exercised | 9 years 2 months 8 days | |||
Weighted remaining contractual years, Vested and expect to be vested | 5 years 7 days | |||
Weighted remaining contractual years, Exercisable | 5 years 7 days | |||
Aggregate intrinsic value , Beginning | $ 2,133 | $ 4,714 | $ 753 | |
Aggregate intrinsic value , Granted | 7,021 | 6,376 | ||
Aggregate intrinsic value , Repurchased | (2,415) | |||
Aggregate intrinsic value , Exercised | (9,602) | |||
Aggregate intrinsic value , Ending | $ 2,133 | $ 4,714 | $ 753 | |
Aggregate intrinsic value , Vested and expect to be vested | 5,239 | |||
Aggregate intrinsic value , Exercisable | $ 5,239 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule The Fair Values Of The Share Options Granted Are Estimated (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Risk-free rate of return | 1.80% | 1.46% | 0.67% |
Volatility | 43.60% | 44.17% | 45.23% |
Expected dividend yield | 0% | 0% | 0% |
Fair value of underlying ordinary share | $ 7.5 | $ 6.15 | $ 2.35 |
Expected terms | 10 years | 10 years | 10 years |
Minimum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise multiple | $ 2.2 | $ 2.2 | $ 2.2 |
Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Exercise multiple | $ 2.8 | $ 2.8 | $ 2.8 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Total Compensation Expenses Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 18, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-Based Payment Arrangement, Expense | $ 59 | $ 8,887 | $ 9,681 | $ 0 |
Cost of Sales [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-Based Payment Arrangement, Expense | 487 | 0 | 0 | |
Selling and Marketing Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-Based Payment Arrangement, Expense | 748 | 0 | 0 | |
General and Administrative Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-Based Payment Arrangement, Expense | $ 7,652 | $ 9,681 | $ 0 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of the Company's Restricted Shares (Detail) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares Outstanding at January 1, 2022 | shares | 0 |
Number of shares, Granted | shares | 220,898 |
Number of shares, Vested | shares | (151,864) |
Number of shares Outstanding at December 31, 2022 | shares | 69,034 |
Number of shares, Expect to be vested at December 31, 2022 | shares | 69,034 |
Weighted average grant date fair value. Outstanding at January 1, 2022 | $ / shares | $ 0 |
Weighted average grant date fair value, Granted | $ / shares | 0.269 |
Weighted average grant date fair value, Vested | $ / shares | 0.3906 |
Weighted average grant date fair value, Outstanding at December 31, 2022 | $ / shares | 0.0015 |
Weighted average grant date fair value, Expect to be vested at December 31, 2022 | $ / shares | $ 0.0015 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 18, 2022 | Jul. 11, 2021 | Oct. 15, 2020 | Aug. 31, 2022 | Feb. 28, 2022 | Jul. 31, 2021 | Jul. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 385,434 | 1,160,557 | 2,833,812 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Repurchases During Period | (389,486) | |||||||||
Payments for Repurchase of Equity | $ 2,435 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 1,587,086 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | |||||||||
Share-Based Payment Arrangement, Expense | $ 59 | $ 8,887 | $ 9,681 | $ 0 | ||||||
IPO [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Payment Arrangement, Expense | $ 8,825 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares | 4,529,383 | |||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Payment Arrangement, Expense | $ 62 | |||||||||
Restricted Stock [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.48 | |||||||||
Number of days for payment of consideration | 45 days | |||||||||
APIC, share based payment arrangement, restricted stock unit, increase for cost recognition | 1,061 | |||||||||
Value of stock related to Restricted Stock Awards issued during the period | $ 1,578 | |||||||||
Number of shares issued during the period related to Restricted Stock Awards | 141,864 | |||||||||
Restricted Stock [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Workers compensation liability current | $ 517 | |||||||||
Restricted Stock [Member] | IPO [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.0015 | |||||||||
Three Year [Member] | Restricted Stock [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of shares issued during the period related to Restricted Stock Awards | 141,864 | |||||||||
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Share | 69,034 | |||||||||
Share-Based Payment Arrangement, Employee [Member] | Restricted Stock [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,000 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.05 | |||||||||
Employees [Member] | Restricted Stock [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 205,708 | |||||||||
Non Employee [Member] | Restricted Stock [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 5,190 | |||||||||
2017 Share Incentive Plan [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 2,833,812 | |||||||||
2017 Share Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Repurchases During Period | 389,486 | |||||||||
Share Price | $ 6.25 | |||||||||
Payments for Repurchase of Equity | $ 2,435 | |||||||||
2017 Share Incentive Plan [Member] | Six Months to Forty two Months [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 1,661,635 | |||||||||
2017 Share Incentive Plan [Member] | Share-Based Payment Arrangement, Non-employee [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 114,258 | |||||||||
2017 Share Incentive Plan [Member] | Share Based Payment Arrangement Directors And Employee [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 2,719,554 | |||||||||
2017 Share Incentive Plan [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 385,434 | 1,160,557 | 26,678 | |||||||
2017 Share Incentive Plan [Member] | Directors And Key Employees [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | 1,587,086 |
Warrant - Additional Informatio
Warrant - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Aug. 22, 2022 | Dec. 31, 2022 | Jul. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Common stock, Par or stated value per share | $ 0.05 | $ 0.05 | |||
Class of warrant or right, Exercise price of warrants or rights | $ 18.375 | ||||
Adjustments to additional paid in capital, Warrant issued | $ 748 | ||||
Common Class A [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Common stock, Par or stated value per share | $ 0.05 | ||||
Underwriter [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Feb. 17, 2023 | ||||
Class of Warrant or Right, Date till which Warrants or Rights Exercisable | Feb. 17, 2025 | ||||
Underwriter [Member] | Common Class A [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Common stock, Par or stated value per share | $ 0.05 | ||||
Percentage of exercise price to public offering price | 150% | ||||
Class of warrant or right, Number of securities called by warrants or rights | 29,400 | ||||
Underwriter [Member] | Common Class A [Member] | IPO [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Class of Warrant or Right, Percentage of Securities Called by Warrants or Rights | 1% | ||||
Common stock, Par or stated value per share | $ 0.05 | ||||
Shares issued, Price per share | $ 12.25 |
Warrant - Summary Of The Fair V
Warrant - Summary Of The Fair Value Of The Warrant Upon The Issuance (Detail) | Dec. 31, 2022 yr PerShare |
Risk-free rate of return [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 3.14 |
Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 46.68 |
Expected dividend yield [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 0 |
Fair value of underlying ordinary share [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | PerShare | 41.41 |
Expected terms [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | yr | 2.5 |
Income Tax - Schedule the Compo
Income Tax - Schedule the Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components Of Income Before Income Taxes [Line Items] | |||
Income tax expense | $ 31,164 | $ 37,725 | $ 45,275 |
HK [Member] | |||
Components Of Income Before Income Taxes [Line Items] | |||
Income tax expense | 27,832 | 35,825 | 37,211 |
People Republic of China [Member] | |||
Components Of Income Before Income Taxes [Line Items] | |||
Income tax expense | 3,734 | 1,685 | 143 |
US [Member] | |||
Components Of Income Before Income Taxes [Line Items] | |||
Income tax expense | 6,502 | 9,346 | 7,158 |
Others [Member] | |||
Components Of Income Before Income Taxes [Line Items] | |||
Income tax expense | $ (6,904) | $ (9,131) | $ 763 |
Income Tax - Schedule of Income
Income Tax - Schedule of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Total current tax provision | $ 7,009 | $ 8,337 | $ 7,202 |
Deferred | |||
Total deferred tax expense | 183 | 131 | 618 |
Income tax expense | 7,192 | 8,468 | 7,820 |
UNITED STATES | |||
Current | |||
Total current tax provision | 2,706 | 2,172 | 1,263 |
Deferred | |||
Total deferred tax expense | 186 | 170 | 638 |
People Republic of China [Member] | |||
Current | |||
Total current tax provision | 3,886 | 5,750 | 5,665 |
Deferred | |||
Total deferred tax expense | (3) | (39) | (20) |
Other [Member] | |||
Current | |||
Total current tax provision | $ 417 | $ 415 | $ 274 |
Income Tax - Schedule of Effect
Income Tax - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Effective Income Tax Rate Reconciliation [Line Items] | |||
Computed expected income tax expenses at the PRC tax rate of 25% | $ 7,791 | $ 9,431 | $ 11,319 |
Effect of: | |||
Tax rate differential for non-PRC entities | (1,387) | (134) | (2,928) |
Preferential tax rate | (509) | (44) | (31) |
Net operating loss carryforwards expired | 12 | 933 | 6 |
Change in unrecognized tax benefits | 254 | 232 | 38 |
Non-deductible expenses | 2 | 2 | 4 |
Non-taxable offshore profit in Hong Kong S.A.R | (4,593) | (6,148) | (6,140) |
Special tax adjustment in the PRC | 3,263 | 5,589 | 5,582 |
Others | 777 | (435) | 24 |
Change in valuation allowance on deferred tax assets | 1,582 | (958) | (54) |
Total | $ 7,192 | $ 8,468 | $ 7,820 |
Income Tax - Schedule of Effe_2
Income Tax - Schedule of Effective Income Tax Rate Reconciliation (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent | 25% |
Income Tax - Schedule of Deferr
Income Tax - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | |||
Net operating losses carryforwards | $ 2,786 | $ 1,204 | |
Inventories under the uniform capitalization (UNICAP) rules | 744 | 808 | |
Inventory write-down | 672 | 619 | |
Accrued expenses and other current liabilities | 308 | 305 | |
Operating lease liabilities, current and non-current | 33,494 | 0 | |
Others | 157 | 134 | |
Less: valuation allowance | (2,786) | (1,204) | $ (2,162) |
Total deferred tax assets, net | 35,375 | 1,866 | |
Tax impact of full expensing of qualified property and equipment | (2,370) | (2,080) | |
Finance leases | (80) | 0 | |
Operating lease right-of-use assets | (33,322) | 0 | |
Total gross deferred income tax liabilities | (35,772) | (2,080) | |
Net deferred liabilities | $ (397) | $ (214) |
Income Tax - Schedule of Net De
Income Tax - Schedule of Net Deferred Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 75 | $ 72 |
Deferred tax liabilities | (472) | (286) |
Net deferred liabilities | $ (397) | $ (214) |
Income Tax - Schedule of Change
Income Tax - Schedule of Changes in valuation allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 1,204 | $ 2,162 |
Additions | 1,643 | 322 |
Decrease | (61) | (1,280) |
Balance at the end of the year | $ 2,786 | $ 1,204 |
Income Tax - Schedule of reconc
Income Tax - Schedule of reconciliation of unrecognized tax benefits from continuing operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning of year | $ 1,033 | $ 801 | $ 763 |
Increases | 254 | 232 | 38 |
Reclassified from prior-year income tax payable | 1,607 | 0 | 0 |
Unrecognized tax benefits, end of year | $ 2,894 | $ 1,033 | $ 801 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) $ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 24, 2019 | Jan. 31, 2023 | Dec. 31, 2022 HKD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2018 | Dec. 31, 2027 USD ($) | Dec. 31, 2026 USD ($) | Dec. 31, 2025 USD ($) | Dec. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Income Tax Disclosure [Line Items] | ||||||||||||
Statutory income tax rate | 25% | 25% | ||||||||||
Deferred tax assets, valuation allowance | $ 2,786 | $ 1,204 | $ 2,162 | |||||||||
Unrecognized tax benefits that would affect income tax rate | 2,894 | 1,033 | 801 | |||||||||
Operating Loss Carryforwards | 595 | 356 | 3,762 | |||||||||
Deferred tax liability not recognized, amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | $ 5,933 | 4,224 | 2,260 | |||||||||
Threshold percentage for recognization of tax benefit | 50% | |||||||||||
Unrecognized tax benefits increase resulting from transfer pricing adjustment | $ 1,861 | 232 | 38 | |||||||||
From Tax Year 2019 to 2021 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Statutory income tax rate | 15% | |||||||||||
Subsequent Event [Member] | From Tax Year 2022 to 2024 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Statutory income tax rate | 15% | |||||||||||
Expirable Tax Year 2023 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards | $ 45 | |||||||||||
Expirable Tax Year 2024 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards | $ 26 | |||||||||||
Expirable Tax Year 2025 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards | $ 18 | |||||||||||
Expirable Tax Year 2026 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards | $ 164 | |||||||||||
Expirable Tax Year 2027 [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards | $ 342 | |||||||||||
Deferred Tax Asset Subsidiaries and VIE [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Deferred tax assets, valuation allowance | $ 2,786 | $ 1,204 | $ 2,162 | |||||||||
UNITED STATES | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Statutory income tax rate | 21% | |||||||||||
Withholding income tax rate on dividends | 30% | 30% | ||||||||||
HONG KONG | Profit Above Two Million Hon Kong Dollar [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Statutory income tax rate | 16.50% | 16.50% | ||||||||||
HONG KONG | Profit Below Two Million Hong Kong Dollar [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Statutory income tax rate | 8.25% | 8.25% | ||||||||||
Threshold limit for Revenue from Subsidiary | $ 2,000 | |||||||||||
CHINA | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Statutory income tax rate | 25% | 25% | ||||||||||
Withholding income tax rate on dividends | 10% | 10% | ||||||||||
CHINA | PRC Tax Administration and Collection Law [Member] | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Income tax examination statute of limitation for underpayment of taxes period | 3 years | 3 years | ||||||||||
Income tax examination statute of limitation for underpayment of taxes above threshold limit | $ 100 | |||||||||||
Income tax examination statute of limitation for underpayment of taxes above threshold limit period | 5 years | 5 years | ||||||||||
Income tax examination,years under examination Description | 2020 to 2022 | 2020 to 2022 | ||||||||||
Income tax examination statute of limitation for transfer pricing | 10 years | 10 years | ||||||||||
GERMANY | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards | $ 2,157 | |||||||||||
UNITED KINGDOM | ||||||||||||
Income Tax Disclosure [Line Items] | ||||||||||||
Operating Loss Carryforwards | $ 10,137 |
Net Income Per Ordinary Share -
Net Income Per Ordinary Share - Schedule of Basic and Diluted Net Income Per Ordinary Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income | $ 23,972 | $ 29,257 | $ 37,455 |
Net income attributable to preferred shareholders | (8,352) | (18,777) | (24,344) |
Accretion of Series E Preferred Shares | (941) | (1,500) | (152) |
Net income per ordinary share calculation | $ 14,679 | $ 8,980 | $ 12,959 |
Weighted average number of ordinary shares - basic | 24,412,314 | 10,248,079 | 9,495,844 |
Weighted average number of ordinary shares - diluted | 24,412,314 | 10,248,079 | 9,495,844 |
Net income per ordinary share attributable to ordinary shareholders - basic | $ 0.6 | $ 0.88 | $ 1.36 |
Net income per ordinary share attributable to ordinary shareholders - diluted | $ 0.6 | $ 0.88 | $ 1.36 |
Net Income Per Ordinary Share_2
Net Income Per Ordinary Share - Schedule of Basic and Diluted Net Income Per Ordinary Share (Parenthetical) (Detail) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2022 | Aug. 17, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Conversion of Stock [Line Items] | |||||
Common stock par or stated value per share | $ 0.05 | $ 0.05 | |||
Conversion Of Temporary Equity Series E Preferred Shares to Class A Ordinary Shares [Member] | |||||
Conversion of Stock [Line Items] | |||||
Common stock par or stated value per share | $ 0.05 | ||||
Series A B C D E Preferred Stock [Member] | |||||
Conversion of Stock [Line Items] | |||||
Preferred Stock, Shares Issued | 21,427,975 | ||||
Preferred Stock, Shares Outstanding | 21,427,975 | ||||
Common Class A [Member] | |||||
Conversion of Stock [Line Items] | |||||
Common stock par or stated value per share | $ 0.05 | ||||
Restricted Stock [Member] | |||||
Conversion of Stock [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.48 | ||||
Antidilutive securities excluded from the computation of earnings per share | 69,034 | ||||
Warrant [Member] | Common Class A [Member] | |||||
Conversion of Stock [Line Items] | |||||
Antidilutive securities excluded from the computation of earnings per share | 29,400 | ||||
Trust Holdcos [Member] | |||||
Conversion of Stock [Line Items] | |||||
Number of common stock held in a trust | 4,765,903 |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues are Disaggregated by Major Products And Service Lines and Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 490,071 | $ 414,197 | $ 275,478 |
Transferred over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 121,951 | 89,986 | 48,148 |
Transferred at point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 368,120 | 324,211 | 227,330 |
Product sales to B [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 49,128 | 50,699 | 39,858 |
Product sales to C [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 68,633 | 76,900 | 53,388 |
Off-platform ecommerce [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 117,761 | 127,599 | 93,246 |
GigaCloud 1P [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 231,682 | 188,266 | 122,102 |
Platform commission [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 6,872 | 4,814 | 3,888 |
Ocean transportation service [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 37,957 | 36,257 | 12,537 |
Warehousing service [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 16,242 | 10,498 | 3,310 |
Last-mile delivery service [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 62,745 | 33,693 | 26,294 |
Others [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 16,812 | 13,070 | 14,101 |
Service [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 140,628 | 98,332 | 60,130 |
Revenues | 140,628 | 98,332 | 60,130 |
Product [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 349,443 | 315,865 | 215,348 |
Revenues | $ 349,443 | $ 315,865 | $ 215,348 |
Revenues - Schedule of Changes
Revenues - Schedule of Changes in the Contract Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | |||
Balance as of beginning of the year | $ 3,690 | $ 3,424 | $ 362 |
Revenue recognized from opening balance of contract liabilities | (3,690) | (3,424) | (362) |
Increase due to cash received | 302,474 | 199,271 | 158,696 |
Revenue recognized from cash received during the year | (300,439) | (195,580) | (155,283) |
Foreign exchange effect | (34) | (1) | 11 |
Balance as of end of the year | $ 2,001 | $ 3,690 | $ 3,424 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities, Current | $ 2,001 | $ 3,690 |
Contract with customer, Timing of satisfaction of performance obligation and payment | one year |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Net Assets [Line Items] | |
Threshold percentage under rule 5-04 (c) | 25% |
CHINA | |
Restricted Net Assets [Line Items] | |
Minimum percentage of allocation of annual after tax profits to the general reserve fund | 10% |
Threshold Percentage of general reserve fund to registered capital | 50% |
Minimum percentage of allocation of annual after tax profits to the statutory surplus fund | 10% |
Threshold percentage of statutory surplus fund to registered capital | 50% |
Percentage of annual appropriations | 10% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - shares | Mar. 31, 2023 | Jan. 31, 2023 |
Giga Cloud Logistics Inc and Blitz Distribution GMBH [Member] | ||
Subsequent Event [Line Items] | ||
Business acquisition, percentage of voting interests acquired | 100% | |
Restricted Stock Units (RSUs) [Member] | ||
Subsequent Event [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 35,170 |