DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Securities Act File Number | 001-41426 |
Entity Registrant Name | Nano Labs Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 30th Floor, Dikaiyinzuo |
Entity Address, Address Line Two | No. 29, East Jiefang Road |
Entity Address, City or Town | Hangzhou, Zhejiang |
Entity Address, Country | CN |
Title of 12(b) Security | American depositary shares, each representing two Class A ordinary shares, par value US$0.0001 per share Class A ordinary shares, par value US$0.0001 |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | true |
Entity Address, Postal Zip Code | 310000 |
Trading Symbol | NA |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001872302 |
Auditor Name | MaloneBailey, LLP |
Auditor Location | Houston, Texas |
Auditor firm Id | 206 |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 54,318,514 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 57,178,154 |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 30th Floor, Dikaiyinzuo |
Entity Address, Address Line Two | No. 29, East Jiefang Road |
Entity Address, City or Town | Hangzhou, Zhejiang |
Contact Personnel Name | Mr. Jianping Kong |
City Area Code | 86 |
Local Phone Number | 0571-8665 6957 |
Contact Personnel Email Address | jack@nano.cn |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 310000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 87,811,272 | $ 12,608,229 | ¥ 233,853,654 |
Restricted Cash | 48,112 | 6,908 | 0 |
Short-term investments | 0 | 0 | 31,888,500 |
Inventories, net | 102,201,746 | 14,674,460 | 213,870,251 |
Prepayments | 71,314,254 | 10,239,533 | 372,355,129 |
Other current assets | 27,275,215 | 3,916,264 | 41,460,490 |
Total current assets | 288,650,599 | 41,445,394 | 893,428,024 |
Non-current assets: | |||
Property, plant and equipment, net | 21,426,955 | 3,076,552 | 7,249,044 |
Intangible asset, net | 48,717,132 | 6,994,964 | 0 |
Operating lease right-of-use assets | 8,447,978 | 1,212,988 | 9,155,665 |
Total non-current assets | 78,592,065 | 11,284,504 | 16,404,709 |
TOTAL ASSETS | 367,242,664 | 52,729,898 | 909,832,733 |
Current liabilities: | |||
Current portion of long-term debts | 280,000 | 40,203 | 0 |
Accounts payable | 15,292,843 | 2,195,796 | 2,837,638 |
Advance from customers | 124,469,097 | 17,871,679 | 917,391,899 |
Operating lease liabilities, current | 4,199,361 | 602,958 | 5,224,757 |
Other current liabilities | 39,399,532 | 5,657,111 | 6,917,757 |
Total current liabilities | 183,640,833 | 26,367,747 | 932,372,051 |
Non-current liabilities: | |||
Long-term debts | 16,673,316 | 2,394,009 | 0 |
Operating lease liabilities, non-current | 2,514,115 | 360,985 | 2,122,357 |
Total liabilities | 202,828,264 | 29,122,741 | 934,494,408 |
Shareholders' equity (deficit): | |||
Ordinary shares Value | 66,970 | ||
Additional paid-in capital | 354,803,564 | 50,943,854 | 201,418,380 |
Accumulated deficit | (199,207,921) | (28,602,923) | (223,679,698) |
Statutory reserves | 6,647,109 | 954,414 | 0 |
Accumulated other comprehensive income (loss) | 2,099,329 | 301,429 | (2,467,327) |
Total shareholders' deficit | 164,414,400 | 23,607,157 | (24,661,675) |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | 367,242,664 | 52,729,898 | ¥ 909,832,733 |
Class A Ordinary Shares | |||
Shareholders' equity (deficit): | |||
Ordinary shares Value | 35,425 | 5,086 | |
Class B Ordinary Shares | |||
Shareholders' equity (deficit): | |||
Ordinary shares Value | ¥ 36,894 | $ 5,297 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Jan. 08, 2021 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares authorized | 200,000,000 | 500,000,000 | 500,000,000 | ||||||
Ordinary shares issued | 111,496,668 | 103,790,000 | 3,790,000 | 3,790,000 | 20,751,000 | 20,751,000 | 79,249,000 | ||
Ordinary shares outstanding | 111,496,668 | 103,790,000 | |||||||
Class A Ordinary Shares | |||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||||
Ordinary shares authorized | 242,821,846 | 242,821,846 | |||||||
Ordinary shares issued | 54,318,514 | ||||||||
Ordinary shares outstanding | 54,318,514 | ||||||||
Class B Ordinary Shares | |||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||||
Ordinary shares authorized | 57,178,154 | 57,178,154 | |||||||
Ordinary shares issued | 57,178,154 | ||||||||
Ordinary shares outstanding | 57,178,154 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Income Statement [Abstract] | ||||
Net revenues | ¥ 983,168,898 | $ 141,166,599 | ¥ 39,440,897 | ¥ 2,126,676 |
Cost of revenues | 753,004,179 | 108,118,798 | 43,530,708 | 1,270,544 |
Gross profit (loss) | 230,164,719 | 33,047,801 | (4,089,811) | 856,132 |
Operating expenses: | ||||
Selling and marketing expenses | 24,431,649 | 3,507,976 | 5,119,072 | 108,567 |
General and administrative expenses | 53,197,248 | 7,638,235 | 24,121,823 | 3,187,033 |
Research and development expenses | 131,851,602 | 18,931,683 | 145,455,181 | 34,476,484 |
Total operating expenses | 209,480,499 | 30,077,894 | 174,696,076 | 37,772,084 |
Income (loss) from operations | 20,684,220 | 2,969,907 | (178,785,887) | (36,915,952) |
Other expenses (income): | ||||
Finance expense (income) | (4,407,504) | (632,844) | 509,764 | 3,747 |
Interest income | (2,005,580) | (287,968) | (3,495,208) | (17,915) |
Other expenses (income) | (4,021,582) | (577,432) | (855,959) | 800,000 |
Total other expense (income) | (10,434,666) | (1,498,244) | (3,841,403) | 785,832 |
Income (loss) before income tax provision | 31,118,886 | 4,468,151 | (174,944,484) | (37,701,784) |
Income tax provision | 0 | 0 | 0 | 2,293 |
Net income (loss) | 31,118,886 | 4,468,151 | (174,944,484) | (37,704,077) |
Comprehensive income (loss): | ||||
Net income (loss) | 31,118,886 | 4,468,151 | (174,944,484) | (37,704,077) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | 4,566,656 | 655,695 | (2,467,327) | 0 |
Total comprehensive income (loss) | ¥ 35,685,542 | $ 5,123,846 | ¥ (177,411,811) | ¥ (37,704,077) |
Net income (loss) per ordinary share: | ||||
Basic | (per share) | ¥ 0.29 | $ 0.04 | ¥ (1.95) | ¥ (0.48) |
Diluted | (per share) | ¥ 0.29 | $ 0.04 | ¥ (1.95) | ¥ (0.48) |
Weighted average number of shares used in per share calculation: | ||||
Basic | 106,488,996 | 106,488,996 | 89,877,975 | 79,249,000 |
Diluted | 106,615,210 | 106,615,210 | 89,877,975 | 79,249,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) | CNY (¥) shares | USD ($) shares | Common Stock CNY (¥) shares | Additional Paid In Capital CNY (¥) | Additional Paid In Capital USD ($) | Statutory Reserve CNY (¥) | Statutory Reserve USD ($) | Accumulated Deficit CNY (¥) | Accumulated Deficit USD ($) | Accumulated Other Comprehensive Loss CNY (¥) | Accumulated Other Comprehensive Loss USD ($) | Class A Ordinary Shares shares | Class A Ordinary Shares Common Stock CNY (¥) shares | Class A Ordinary Shares Common Stock USD ($) shares | Class B Ordinary Shares shares | Class B Ordinary Shares Common Stock CNY (¥) shares | Class B Ordinary Shares Common Stock USD ($) shares |
Beginning Balance (shares) at Dec. 31, 2019 | shares | 79,249,000 | ||||||||||||||||
Beginning Balance at Dec. 31, 2019 | ¥ (11,031,137) | ¥ 51,135 | ¥ (51,135) | ¥ (11,031,137) | |||||||||||||
Net Income (loss) | (37,704,077) | (37,704,077) | |||||||||||||||
Share-based compensation | 214,882 | 214,882 | |||||||||||||||
Ending Balance (shares) at Dec. 31, 2020 | shares | 79,249,000 | ||||||||||||||||
Ending Balance at Dec. 31, 2020 | (48,520,332) | ¥ 51,135 | 163,747 | (48,735,214) | ¥ 0 | ||||||||||||
Net Income (loss) | (174,944,484) | (174,944,484) | |||||||||||||||
Share-based compensation | 19,344 | 19,344 | 0 | ||||||||||||||
Issuance of ordinary shares for cash (Shares) | shares | 24,541,000 | ||||||||||||||||
Issuance of ordinary shares for cash | 201,199,989 | ¥ 15,835 | 201,184,154 | 0 | |||||||||||||
Cash Contribution From Shareholders | 51,135 | 51,135 | 0 | ||||||||||||||
Foreign currency translation adjustment | ¥ (2,467,327) | ¥ (2,467,327) | |||||||||||||||
Ending Balance (shares) at Dec. 31, 2021 | shares | 103,790,000 | 103,790,000 | 103,790,000 | ||||||||||||||
Ending Balance at Dec. 31, 2021 | ¥ (24,661,675) | ¥ 66,970 | 201,418,380 | (223,679,698) | (2,467,327) | 0 | |||||||||||
Net Income (loss) | 31,118,886 | $ 4,468,151 | 31,118,886 | ||||||||||||||
Share-based compensation | 9,347,347 | 9,347,347 | 0 | ||||||||||||||
Foreign currency translation adjustment | 4,566,656 | 4,566,656 | |||||||||||||||
Re-designation of ordinary shares to Class A and Class B ordinary shares immediately prior the completion of initial public offering | ¥ (66,970) | ¥ 30,076 | ¥ 36,894 | ||||||||||||||
Re-designation of ordinary shares to Class A and Class B ordinary shares immediately prior the completion of initial public offering, Shares | shares | (103,790,000) | 46,611,846 | 46,611,846 | 57,178,154 | 57,178,154 | ||||||||||||
Share issuance initial public offering, net of issuance cost | 111,939,400 | 111,937,012 | ¥ 2,388 | ¥ 0 | |||||||||||||
Share issuance initial public offering, net of issuance cost, Shares | shares | 3,540,000 | 3,540,000 | |||||||||||||||
Share issuance following initial public offering, net of issuance cost | ¥ 32,103,786 | 32,100,825 | ¥ 2,961 | ¥ 0 | |||||||||||||
Share issuance following initial public offering, net of issuance cost, Shares | shares | 4,166,668 | 4,166,668 | |||||||||||||||
Transfer to reserve | ¥ 6,647,109 | (6,647,109) | |||||||||||||||
Ending Balance (shares) at Dec. 31, 2022 | shares | 111,496,668 | 111,496,668 | 54,318,514 | 54,318,514 | 54,318,514 | 57,178,154 | 57,178,154 | 57,178,154 | |||||||||
Ending Balance at Dec. 31, 2022 | ¥ 164,414,400 | $ 23,607,157 | ¥ 354,803,564 | $ 50,943,854 | ¥ 6,647,109 | $ 954,414 | ¥ (199,207,921) | $ (28,602,923) | ¥ 2,099,329 | $ 301,429 | ¥ 35,425 | $ 5,086 | ¥ 36,894 | $ 5,297 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASHFLOWS | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities | ||||
Net income (loss) | ¥ 31,118,886 | $ 4,468,151 | ¥ (174,944,484) | ¥ (37,704,077) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Amortization of right-of-use assets | 5,505,422 | 790,486 | 2,920,433 | 269,315 |
Depreciation and amortization expenses | 3,928,131 | 564,014 | 2,609,699 | 353,557 |
Gain on lease termination | 0 | 0 | (12,088) | 0 |
Share-based compensation | 9,347,347 | 1,342,123 | 19,344 | 214,882 |
Inventory write-down | 184,073,191 | 26,429,830 | 26,753,768 | 0 |
Changes in assets and liabilities: | ||||
Accounts receivable, net | 0 | 0 | 1,165,716 | (1,165,716) |
Inventories, net | (71,446,484) | (10,258,519) | (233,385,726) | (7,238,293) |
Prepayments | 304,300,103 | 43,692,401 | (364,369,453) | (2,126,527) |
Other current assets | 51,740,635 | 7,429,089 | (38,564,595) | (2,575,074) |
Accounts payable | 10,591,202 | 1,520,719 | 1,937,951 | 390,152 |
Accounts payable - related party | 0 | 0 | (4,716,981) | 0 |
Advance from customers | (794,302,470) | (114,048,541) | 851,987,235 | 45,033,520 |
Other payables | (19,683,959) | (2,826,287) | (175,721) | 168,553 |
Operating lease liabilities, current | (5,330,448) | (765,363) | (4,687,184) | (302,256) |
Other current liabilities | 15,217,655 | 2,185,001 | 5,194,954 | 1,654,065 |
Net cash provided by (used in) operating activities | (274,940,789) | (39,476,896) | 71,732,868 | (3,027,899) |
Cash flow from investing activities: | ||||
Purchases of property, plant and equipment | (17,531,162) | (2,517,181) | (8,692,683) | (936,776) |
Refund of prepayment for property, plant and equipment | 0 | 0 | 550,000 | 0 |
Purchases of short-term investment | 0 | 0 | (32,293,440) | 0 |
Proceeds from sales of short-term investments | 33,640,500 | 4,830,213 | 0 | 0 |
Purchases of intangible assets | (49,292,208) | (7,077,536) | 0 | 0 |
Loan provided to a related party | 0 | 0 | (100,000) | (2,270,000) |
Collection of loan provided to a related party | 0 | 0 | 4,490,000 | 1,560,000 |
Net cash used in investing activities | (33,182,870) | (4,764,504) | (36,046,123) | (1,646,776) |
Cash flow from financing activities: | ||||
Proceeds from related parties | 0 | 0 | 0 | 30,255,000 |
Repayment to related parties | 0 | 0 | (31,355,000) | (890,000) |
Proceeds from issuance of ordinary shares | 144,043,186 | 20,682,191 | 201,199,989 | 0 |
Cash contribution from shareholders | 0 | 0 | 51,135 | 0 |
Proceeds from long-term debts | 17,093,316 | 2,454,314 | 0 | 0 |
Repayments of long-term debts | (140,000) | (20,102) | 0 | 0 |
Repayment of loan payable | 0 | 0 | (5,000,000) | 0 |
Net cash provided by financing activities | 160,996,502 | 23,116,403 | 164,896,124 | 29,365,000 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | 1,132,887 | 162,663 | (2,062,387) | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (145,994,270) | (20,962,334) | 198,520,482 | 24,690,325 |
Cash, cash equivalents and restricted cash at beginning of the year | 233,853,654 | 33,577,471 | 35,333,172 | 10,642,847 |
Cash, cash equivalents and restricted cash at end of the year | 87,859,384 | 12,615,137 | 233,853,654 | 35,333,172 |
Supplemental cash flow disclosures: | ||||
Interest paid | 180,619 | 25,934 | 0 | 0 |
Income taxes paid | 89,169 | 12,803 | 276,186 | 2,336 |
Non-cash investing and financing activities: | ||||
Operating lease right-of-use asset obtained in exchange for operating lease liability | ¥ 4,557,092 | $ 654,322 | ¥ 0 | ¥ 0 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | 1. Organization and nature of operations Nano Labs Ltd (“Nano Labs”), incorporated on January 8, 2021, is a holding company, as an exempted company with limited liability in the Cayman Islands. Nano Labs principally engages in fabless integrated circuit (“IC”) design and sale of product solutions by integrating its self-designed IC products in the People’s Republic of China (“PRC”) and other countries and regions. The Company utilizes third-party suppliers to fabricate, pack and test the IC products. Prior to the incorporation of the Company, the Company’s business was carried out by Zhejiang Haowei Technology Co., Ltd. (“Zhejiang Haowei”) and its subsidiaries. Zhejiang Haowei was established by Mr. Jianping Kong, the principal shareholder, chairman and chief executive officer, in July 2019. Nano Labs underwent a series of onshore and offshore reorganizations, which were completed in September 2021 (the “Reorganization”). Immediately before and after the Reorganization, the controlling shareholders of Zhejiang Haowei controlled Zhejiang Haowei and Nano Labs; therefore, for accounting purposes, the Reorganization is accounted for as a transaction of entities under common control. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods presented. The number of outstanding shares in the consolidated balance sheets, the consolidated statements of changes in shareholders’ equity (deficit,) and per share information including the net income (loss) per ordinary share have been presented retrospectively as of the beginning of the earliest period presented on the consolidated financial statements to reflect the final shares issued in the Reorganization. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries. As of the date of this report, the Company’s major subsidiaries are as follows: Name of subsidiaries Date of incorporation Place of incorporation Ownership percentage Principal activities Zhejiang Haowei Technology Co., Ltd. (“Zhejiang July 16, 2019 Hangzhou, China 100 % Research and development of ICs Zhejiang Nanomicro Technology Co., Ltd. (“Zhejiang July 16, 2019 Hangzhou, China 100 % Research and development of ICs Zhejiang NanoBlock Technology Co., Ltd. July 16, 2019 Hangzhou, China 100 % Research and development of ICs Zhejiang Ipollo Technology Co., Ltd. August 18, 2020 Hangzhou, China 100 % Distribution of products Nano Labs HK Limited September 8, 2020 Hong Kong 100 % Investment Nano Labs Inc December 22, 2020 BVI 100 % Investment Name of subsidiaries Date of Place of Ownership Principal Zhejiang Weike Technology Co., Ltd. June 2, 2021 Hangzhou, China 100 % Research and development of software IPOLLO PTE. LTD. (formerly IPOLLO MINER PTE.LTD.) June 9, 2021 Singapore 100 % Distribution of products Ipollo Tech Inc June 29, 2021 BVI 100 % Investment Nano Tech Cayman Ltd July 6, 2021 Cayman 100 % Investment Nano Technology HK Limited July 7, 2021 Hong Kong 100 % Investment Ipollo HK Limited July 7, 2021 Hong Kong 100 % Distribution of products Zhejiang Metaverse Technology Co., Ltd. August 12, 2021 Hangzhou, China 100 % Investment Ipollo Tech Ltd October 27, 2021 Cayman 100 % Investment Haowei Technology (Shaoxing) Co., Ltd. November 3, 2021 Shaoxing, China 100 % Investment Shenzhen Matamata Technology Co., Ltd. November 17, 2021 Shenzhen, China 100 % Distribution of products Shenzhen Matavos Technology Co., Ltd. December 21, 2021 Shenzhen, China 100 % Distribution of products Tsuki Inc January 7, 2022 United States 100 % Distribution of products Metaski (Shaoxing) Technology Co., Ltd. January 13, 2022 Shaoxing, China 100 % Distribution of products Haoweiverse (Shaoxing) Technology Co., Ltd. January 13, 2022 Shaoxing, China 65 % Plant and distribution of products Metameta (Shaoxing) Technology Co., Ltd. January 25, 2022 Shaoxing, China 100 % Distribution of products Ipolloverse HK Limited May 18, 2022 Hong Kong 70 % Research and development Metaverse (Shaoxing) Technology Co., Ltd. May 20, 2022 Shaoxing, China 100 % Distribution of products Ipolloverse Cayman Ltd May 27, 2022 Cayman 70 % Investment Ipolloverse Tech Inc May 30, 2022 BVI 70 % Investment Hangzhou Meta Technology Co., Ltd. October 21, 2022 Hangzhou, China 100 % Distribution of products Nano Labs and its consolidated subsidiaries are collectively referred to herein as the “Company”, “we” and “us”, unless specific reference is made to an entity. |
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 Basis of preparation The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for information pursuant to the rules and regulations of the SEC. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. Use of estimates The preparation of the Company’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company's consolidated financial statements including, but not limited to, inventory write-down, valuation allowance for deferred tax assets and share-based compensation. Principles of consolidation The Company’s consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Functional currency and foreign currency translation The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Company is RMB as determined based on the criteria of ASC 830, “ Foreign Currency Matters” . Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of operations and comprehensive income (loss). The financial statements of the Company are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the Company and its subsidiaries incorporated outside of PRC are translated into RMB at fiscal year-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the fiscal year, representing the index rates stipulated by the People’s Bank of China. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a separate component of shareholders’ equity (deficit) on the consolidated financial statement. Convenience translation The United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ were calculated at the rate of US$1.00=RMB6.9646 on December 31, 2022, representing the central parity rate on December 31, 2022 published by the People’s Bank of China. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2022, or at any other rate. Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions with high credit ratings and quality. Fair value measurement The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for similar assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. ASC 820 also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial instruments included in current assets and current liabilities except for short-term investments are reported in the consolidated balance sheets at face value or cost, which approximate to fair value because of their short-term maturities. Short-term investments represent wealth management products that have original maturities of less than three months. The Company values its wealth management products using alternative market observable inputs and accordingly classifies the valuation techniques that use these inputs as Level 2. Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Cash and cash equivalents Cash and cash equivalents include cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash. As of December 31, 2021 and 2022, cash and cash equivalents in banks was RMB 233,853,654 and RMB 87,811,272 , respectively. Restricted cash Restricted cash mainly represents the bank deposit frozen by the court as a result of legal proceedings. As of December 31, 2021 and 2022, the Company had restricted cash balance of nil and RMB 48,112 , respectively. Short-term investments Short-term investments include wealth management products purchased from banks, which are certain deposits with variable interest rates or principal not-guaranteed. The wealth management products have short original maturities of less than three months and the carrying value approximates to fair value. Inventories, net Inventories, consist of raw materials, work in process and finished goods. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Prepayments Prepayments primarily consist of advances to suppliers for future inventory purchases and prepaid processing fees. Property, plant and equipment, net Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. The estimated useful lives are as follows: Computers and electronic equipment 2 to 3 years Office furniture 5 years Transportation equipment 4 years Leasehold improvements are depreciated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction in progress represents assets under construction. All direct costs relating to the construction are capitalized as construction in progress. Construction in progress is not depreciated until the asset is placed in service. Intangible asset, net The Company’s intangible asset with definite useful lives primarily consists of a franchise right and land use right. According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. The Company amortizes its franchise right and land use right on a straight-line basis over the contractual term. The estimated useful lives are as follows: Franchise right 2 years Land use right 50 years Impairment of long-lived assets For long-lived assets including property, plant and equipment, right-of-use assets, and intangible assets with finite lives, the Company evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For the years ended December 31, 2020, 2021 and 2022, no impairment of long-lived assets was recognized. Revenue from contracts with customers Consistent with the criteria of ASC 606 “Revenue from Contracts with Customers”, the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. Revenue consists of the invoiced value for the sales net of value-added tax (“VAT”), business tax and applicable local government levies. Product sales revenue The Company generates revenue primarily from the sale of product solutions by integrating its self-designed IC products (e.g., high throughput computing, or HTC, solutions) directly to a customer, such as a business or individual engaged in mining activities. The Company recognizes revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or shipped to customers. The Company’s sales arrangements usually require prepayment before the delivery of products. The advance payment is not considered a significant financing component. The Company elected to account for shipping and handling fees as a fulfillment cost. The product sales contracts generally include product warranty provisions. The Company did not accrue warranty liabilities for the product sales as the financial impacts of the warranty have historically been and are expected to continue to be immaterial. Service revenue The Company also generates revenue from its design and technical services under separate contracts. Revenues from the design and technical service to the customers are recognized at a point in time when services are provided. Revenue disaggregation In accordance with ASC 606, the Company disaggregates revenue from contracts with customers by revenue stream. The Company determined that disaggregating revenue into these categories meets the disclosure objective in ASC 606 which is to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. The following table summarizes the net revenues generated from different revenue streams: For the Years Ended December 31, 2020 2021 2022 RMB RMB RMB Product sales revenue 2,004,074 39,440,897 920,653,911 Service revenue 122,602 — 62,514,987 Net revenues 2,126,676 39,440,897 983,168,898 Contract liabilities Contract liabilities are recorded when consideration is received from a customer prior to transferring the control of goods or services to the customer. As of December 31, 2021 and 2022, the Company recorded contract liabilities of RMB 917,391,899 and RMB 124,469,097 , respectively, which were presented as advance from customers on the accompanying consolidated balance sheets. During the years ended December 31, 2020, 2021 and 2022, the Company rec ognized RMB 1,165,716 , RMB 4,241,270 and RMB 804,875,532 of contract liabilities as revenue, respectively. Cost of revenues Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists of product costs and service costs. Product costs include costs of raw material, contract manufacturers for production, shipping and handling costs, and warehousing costs. Service costs include labor costs. During the years ended December 31, 2020, 2021 and 2022, the Company recorded inventory write-down of nil , RMB 26,753,768 and RMB 184,073,191 a s cost of revenues, respectively. Selling and marketing expenses Selling and marketing expenses consist primarily of advertising and promotion, salaries, and shipping and handling costs incurred during the selling activities. Advertising and transportation expenses are charged to expense as incurred. Advertising and promotion costs in the amounts of RMB 108,567 , RMB 992,996 and RMB 10,901,200 for the years ended December 31, 2020, 2021 and 2022, respectively, are included in selling and marketing expenses. Shipping and handling costs amounting to nil , RMB 371,769 and RMB 4,233,084 for the years ended December 31, 2020, 2021 and 2022, respectively, are included in selling and marketing expenses. Research and development expenses Research and development expenses consist primarily of salary and welfare for research and development personnel, raw materials used, consulting and contractor expenses, testing and processing expenses and other expenses in associated with research and development activities. The Company recognizes research and development expenses as expense when incurred. Leases Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such leases on a straight-line basis over the lease term. Employee social security and welfare benefits Employees of the Company in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Company is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Company’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. Share-based compensation Restricted shares and options granted to employees and directors are accounted for under ASC Topic 718, “Compensation - Stock compensation” (“ASC 718”). In accordance with ASC 718, the Company determines whether restricted shares or options should be classified and accounted for as an equity award. All grants of restricted shares and options to employees and directors classified as equity awards are recognized in the financial statements based on their grant date fair values. The value of the portion of the award that is ultimately expected to vest is recognized as compensation expense over the requisite service periods in the statements of operations. In addition, compensation expense must be recognized for the change in fair value of any awards modified, repurchased or cancelled after the grant date. The fair value of stock option granted is estimated on the grant date using the binomial model. Income taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the tax income rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded if it is more likely than not that some portion or all of the deferred income tax assets will not be realized in the foreseeable future. In accordance with the provisions of ASC 740, “Income taxes”, the Company recognizes in its financial statements the impact of a tax position if a tax return position or future tax position is “more likely than not” to be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Interest and penalties arising from underpayment of income taxes are computed in accordance with the applicable tax law and is classified in the consolidated statements of operations as income tax expense. Comprehensive income (loss) Comprehensive income/(loss) is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments from shareholders and distributions to shareholders. Comprehensive income (loss) for the periods presented includes net income (loss) and foreign currency translation adjustments. Earnings (loss) per share The Company computes earnings (loss) per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted earnings (loss) per share if their effects would be anti- dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Company’s ordinary shares issuable upon the conversion of the share-based awards, using the treasury stock method. Segment Reporting The Company uses the “management approach” in determining reportable segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by marketing channel. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. Recently adopted or issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments (Topic 326)”, and issued subsequent amendments to the initial guidance, transitional guidance and other interpretive guidance between November 2018 and March 2020 within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02 and ASU 2020-03. ASU 2016-13 introduces new guidance for credit losses on instruments within its scope, which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life, instead of when incurred. For the Company, the guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. All entities may adopt this ASU through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company adopted ASU 2016-13 on January 1, 2023 and the adoption did not have a material impact on its consolidated financial statements. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 3. Inventories, net Inventories, net consist of the following: As of December 31, 2021 2022 RMB RMB Raw materials 61,673,722 69,914,306 Work in process 115,246,904 158,693,203 Finished goods 63,703,393 81,807,783 Less: write-down of inventories ( 26,753,768 ) ( 208,213,546 ) Inventories, net 213,870,251 102,201,746 |
Prepayments
Prepayments | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expense, Current [Abstract] | |
Prepayments | 4. Prepayments As of December 31, 2021 2022 RMB RMB Prepayments – inventories and processing fee 369,183,083 64,813,532 Prepayments – others 3,172,046 6,500,722 Prepayments 372,355,129 71,314,254 |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expense and Other Assets [Abstract] | |
Other current assets | 5. Other current assets Other current assets consist of the following: As of December 31, 2021 2022 RMB RMB Value-added tax recoverable 33,077,492 23,731,587 Deferred offering related expenses 7,108,562 — Deposits 919,630 3,434,080 Others 354,806 109,548 Total 41,460,490 27,275,215 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | 6. Property, plant and equipment, net Property, plant and equipment, net consist of the following: As of December 31, 2021 2022 RMB RMB Cost: Computers and electronic equipment 8,349,956 9,537,316 Office furniture 238,222 266,252 Leasehold improvement 1,395,308 1,550,648 Transportation equipment — 41,014 Construction in progress — 16,119,419 Less: Accumulated depreciation ( 2,734,442 ) ( 6,087,694 ) Property, plant and equipment, net 7,249,044 21,426,955 Depreciation expenses recognized for the years ended December 31, 2020, 2021 and 2022 were RMB 187,277 , RMB 2,510,398 and RMB 3,353,055 , respectively. |
Intangible asset, net
Intangible asset, net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible asset, net | 7. Intangible asset, net Intangible asset, net consists of the following: As of December 31, 2021 2022 RMB RMB Cost: Land use right — 49,292,208 Franchise right 334,865 334,865 Less: Accumulated amortization ( 334,865 ) ( 909,941 ) Intangible asset, net — 48,717,132 Amortization expense for the years ended December 31, 2020, 2021 and 2022 amounted to RMB 166,280 , RMB 99,301 and RMB 575,076 , respectively. As of December 31, 2021 and 2022, land use right with net book value of nil and RMB 48,717,132 was pledged as collateral under a loan arrangement (al so see Note 10). As of December 31, 2022, the future estimated amortization expenses are as below. Estimated amortization expense Years ended December 31, RMB 2023 985,844 2024 985,844 2025 985,844 2026 985,844 2027 985,844 Thereafter 43,787,912 Total 48,717,132 |
Operating leases
Operating leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Operating leases | 8. Operating leases The Company entered into various operating lease agreements for offices space. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following component of lease cost are included in the Company’s consolidated statements of operations and comprehensive income (loss): For the year For the year For the year RMB RMB RMB Operating lease cost 389,799 3,277,780 11,385,312 Short-term lease cost 48,000 1,867,850 295,564 Total lease cost 437,799 5,145,630 11,680,876 Supplemental disclosure related to operating leases were as follows: For the year For the year For the year RMB RMB RMB Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases 335,162 5,068,864 5,822,406 As of December 31, As of December 31, Weighted average remaining lease term of operating leases (years) 1.86 1.65 Weighted average discount rate of operating leases 6.24 % 6.24 % The following table summarizes the maturity of operating lease liabilities as of December 31, 2022: As of December 31, 2022 RMB 2023 4,239,198 2024 2,542,911 Thereafter — Total lease payments 6,782,109 Less: imputed interest ( 68,633 ) Total lease liabilities 6,713,476 |
Other current liabilities
Other current liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities, Current [Abstract] | |
Other current liabilities | 9. Other current liabilities Other current liabilities consist of the following: As of December 31, As of December 31, RMB RMB Salary accrual 6,591,805 8,536,985 Deposit — 10,000,000 Tax accrual 321,443 13,609,170 Others 4,509 7,253,377 Total 6,917,757 39,399,532 |
Long-term debts
Long-term debts | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term debts | 10. Long-term debts On August 11, 2022, the Company entered into a line of credit agreement with Zhejiang Shaoxing Ruifeng Rural Commercial Bank for a credit line up to RMB 100,000,000 with a due date on July 25, 2030 . During the year ended December 31, 2022, the Company borrowed RMB 17,093,316 under the credit line and repaid RMB 140,000 . The loans bear an annual interest rate of 5.4 % with repayment dates for parts of the loan ranging from September 20, 2022 to July 25, 2030 . The loans are pledged by the land use right of the Company (mentioned in Note 7). As of December 31, 2022, the future maturities of long-term debts are as below: As of December 31, RMB 2023 280,000 2024 420,000 2025 560,000 2026 700,000 2027 840,000 Thereafter 14,153,316 Total 16,953,316 |
Shareholders' equity (deficit)
Shareholders' equity (deficit) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' equity (deficit) | 11. Shareholders’ equity (deficit) On January 8, 2021, Nano Labs Ltd was incorporated in the Cayman Islands. In April 2021, the Board of the Company approved a one-for-10,000 shares subdivision, following which the authorized share capital of US$ 50,000 was divided into 500,000,000 ordinary shares with a par value of US$ 0.0001 each. In January and March 2021, the Company issued ordinary shares, which equivalent to a total of 79,249,000 ordinary shares after the reorganization, to six original shareholders of Zhejiang Haowei with cash proceeds of US$ 7,925 . In April and May 2021, the Company entered into agreements with fourteen new shareholders to issue a total of 20,751,000 ordinary shares for total cash proceeds of RMB 81,000,000 (approximately US$ 12,600,000 ). In July 2021, the total of 20,751,000 ordinary shares were issued and the proceeds had been fully collected as of December 31, 2021. In August 2021, the Company entered into agreements with six new shareholders to issue a total of 3,790,000 ordinary shares for total consideration of US$ 18,950,000 (approximately RMB 122,300,000 ). In November 2021, the total of 3,790,000 shares were issued and the proceeds had been fully collected as of December 31, 2021. Immediately prior to the completion of the initial public offering (“IPO”) on July 12, 2022, the Company adopted a dual-class share structure, consisting of Class A ordinary shares and Class B ordinary shares, with par value of US$ 0.0001 per share. 57,178,154 ordinary shares, beneficially owned by Mr. Jianping Kong and Mr. Qifeng Sun, the founders of the Company, were re-designated into Class B ordinary shares on a one-for-one basis, and the remaining 46,611,846 ordinary shares were re-designated into Class A ordinary shares on a one-for-one basis. Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to 15 votes per share. Each Class B ordinary share is convertible at any time into one Class A ordinary share, while Class A ordinary shares are not convertible into Class B ordinary shares. On July 14, 2022, the Company completed the IPO with new issuance of totaling 1,770,000 ADSs representing 3,540,000 Class A ordinary shares at a price of US$ 11.50 per ADS or US$ 5.75 per ordinary share for gross proceeds of approximately US$ 20.4 million. The Company received all the net proceeds of approximately US$ 16.6 million after deducting underwriting discounts and commissions and other offering expenses by July 14, 2022. On September 30, 2022, the Company completed the supplemental offering with new issuance of totaling 2,083,334 ADSs representing 4,166,668 Class A ordinary shares at price of US$ 2.40 per ADS or US$ 1.20 per share for gross proceeds of approximately US$ 5.0 million. The Company received all the net proceeds of approximately US$ 4.5 million after deducting underwriting discounts and commissions and other offering expenses by October 5, 2022. As of December 31, 2021 and 2022, there were 103,790,000 and 111,496,668 ordinary shares issued and outstanding, respectively. |
Statutory Reserve
Statutory Reserve | 12 Months Ended |
Dec. 31, 2022 | |
Statutory Reserve Disclosure [Abstract] | |
Statutory Reserve | 13. Statutory Reserves The Company’s subsidiaries incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”). Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Company is not required to make appropriation to other reserve funds and the Company does not have any intentions to make appropriations to any other reserve funds. The general reserve fund can only be used for specific purposes, such as offsetting the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves. There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Company has not done so. Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances. The Company has made nil, nil and RMB 6,647,109 appropriations to statutory reserve for the years ended December 31, 2020, 2021 and 2022, respectively. |
Share based compensation
Share based compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Disclosure Of Compensation Related Costs Share Based Payments | 12. Share-based compensation Restricted Stock Units (“RSUs”) On January 31, 2020, Jianping Kong, principal shareholder, chairman and chief executive officer, granted, on behalf of Zhejiang Haowei, a total of 800,000 restricted shares of Zhejiang Haowei to its employees and directors, representing 8 % of the equity interest of Zhejiang Haowei then. For these rewards, 33.3 % will be vested on December 31, 2022 or one year after Zhejiang Haowei completed the initial public offering, whichever is earlier; 33.3 % will be vested on December 31, 2023 or two years after Zhejiang Haowei completed the initial public offering, whichever is earlier; and 33.3 % will be vested on December 31, 2024 or three years after Zhejiang Haowei completed the initial public offering, whichever is earlier. On December 10, 2020, Jianping Kong, on behalf of Zhejiang Haowei, granted a total of 400,000 restricted shares of Zhejiang Haowei to its employees and directors, representing 4 % of the equity interest of Zhejiang Haowei then. The restricted shares were fully vested at the grant date. As part of the reorganization completed in September 2021, upon mutual agreement of Jianping Kong and the equity reward holders, the equity rewards of Zhejiang Haowei described above were replaced with restricted shares of the Company while maintaining the same percentage of equity interest held by each equity reward holder. No incremental fair value was recognized. A total of 9,272,131 restricted ordinary shares of Nano Labs were transferrable by Jianping Kong with the respective terms and vesting schedules unchanged. On December 10, 2020, Zhejiang Haowei granted a total of 256,411 restricted shares to its employees and directors, representing 2.5 % of the total equity interest of Zhejiang Haowei then. The restricted shares were fully vested at the grant date. As part of the reorganization completed in September 2021, the equity rewards granted by Zhejiang Haowei were replaced with restricted shares of the Company while maintaining the same percentage of equity interest held by each equity reward holder. No incremental fair value was recognized. 1,981,225 restricted ordinary shares of Nano Labs previously issued to and held by the original shareholders of Zhejiang Haowei on behalf of the respective equity reward holders were to be transferred with the terms and vesting schedules unchanged. On November 1, 2021, the Board of the Company approved the establishment of an employee benefit trust for the purpose of holding the Company’s ordinary shares to be transferred to the recipient employees and directors of the incentive share awards. In January 2022, Jianping Kong and other original shareholders of Zhejiang Haowei transferred a total of 11,253,356 ordinary shares held by them on behalf of the respective equity reward holders to the employee benefit trust. All share awards described above will be transferred to recipient employees and directors from the employee benefit trust. During the years ended December 31, 2020, 2021 and 2022, share-based compensation recognized by the Company related to the RSUs were RMB 214,882 , RMB 19,344 and RMB 17,863 , respectively. As of December 31, 2021 and 2022, unrecognized compensation cost is RMB 35,323 and RMB 15,559 , respectively, which is expected to be recognized over a weighted average period of 2 years and 1 year, respectively. The following table summarized the RSUs activity and related information for the year ended December 31, 2022: Number of RSUs Weighted Average Grant Date Fair Value (RMB) Unvested, January 1, 2022 6,181,420 0.01 Granted — — Forfeited 162,262 0.01 Vested 2,006,384 0.01 Unvested, December 31, 2022 4,012,774 0.01 Option On January 1, 2022, the Company granted an employee an option to purchase 500,000 ordinary shares of the Company with an exercise price of US$ 0.0002 per share. The option granted has a contractual term of 10 years. For the reward, 33.3 % will be vested on December 31, 2022 or one year after the Company completed the initial public offering, whichever is earlier; 33.3 % will be vested on December 31, 2023 or two years after the Company completed the initial public offering, whichever is earlier; and 33.3 % will be vested on December 31, 2024 or three years after the Company completed the initial public offering, whichever is earlier. The option granted was valued using the binomial model with the assistance of an independent valuation firm using the management’s estimates and assumptions. Significant assumptions used in the valuation are set as below: January 1, 2022 Spot price on valuation date US$ 4.80 Expected volatility 137.01 % Risk-free interest rate 1.51 % Dividend yield 0.00 % Forfeiture rate 0.00 % The following table summarizes the share option activity and related information for the year ended December 31, 2022: Number of Options Weighted Average Exercise Price (RMB) Weighted Average Remaining Term (Years) Weighted Average Grant Date Fair Value (RMB) Outstanding as of 1/1/2022 — — — — Granted 500,000 0.001 10.00 30.47 Forfeited — — — — Exercised — — — — Outstanding as of 12/31/2022 500,000 0.001 9.00 30.47 Vested and exercisable as of December 31, 2022 166,666 During the years ended December 31, 2020, 2021 and 2022, share-based compensation recognized by the Company related to the option were nil, nil and RMB 9,329,484 , respectively. The outstanding unamortized share-based compensation related to option was RMB 5,887,864 (which will be recognized through December 2024) as of December 31, 2022. 2022 Share Incentive Plan In June 2022, the Company adopted 2022 share incentive plan, or the 2022 Plan, which has become effective upon the completion of initial public offering in July 2022, to motivate, attract and retain the best available personnel, provide additional incentives to employees, directors and consultants, and promote the success of the business. Under the 2022 Plan, the maximum aggregate number of Class A ordinary shares which may be issued pursuant to all awards under such plan is 10,379,000 , which constitutes 10 % of the total issued and outstanding shares of the Company on a fully-diluted basis as of the date of adoption. |
Earning (loss) per share
Earning (loss) per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earning (loss) per share | 14. Earnings (loss) per share The calculation of basic earnings (loss) per share is based on the income (loss) attributable to ordinary shareholders of the Company and weighted-average number of ordinary shares outstanding for the years ended December 31, 2020, 2021 and 2022. Diluted earnings (loss) per share is computed using the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the respective periods. The following reflects the income and share data used in the basic and diluted earnings (loss) per ordinary share computations: For the years ended December 31, 2020 2021 2022 RMB RMB RMB Earnings (loss) attributable to ordinary shareholders of the Company ( 37,704,077 ) ( 174,944,484 ) 31,118,886 Weighted average number of ordinary shares outstanding for basic earnings (loss) per share calculation 79,249,000 89,877,975 106,488,996 Basic earnings (loss) per share ( 0.48 ) ( 1.95 ) 0.29 Earnings (loss) attributable to ordinary shareholders of the Company for diluted earnings (loss) per share calculation ( 37,704,077 ) ( 174,944,484 ) 31,118,886 Weighted average number of ordinary shares outstanding diluted earnings (loss) per share calculation 79,249,000 89,877,975 106,488,996 Adjusted for: - incremental shares issuable related to options issued — — 126,214 Weighted average number of shares outstanding for diluted earnings (loss) per share calculation 79,249,000 89,877,975 106,615,210 Diluted earnings (loss) per share ( 0.48 ) ( 1.95 ) 0.29 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Cayman Islands Under the current tax laws of Cayman Islands, the holding companies incorporated in the Cayman Islands are not subject to income, corporation or capital gains tax, and no withholding tax is imposed upon the payment of dividends. British Virgin Islands The holding companies incorporated in the British Virgin Islands are not subject to tax on income or capital gains under current British Virgin Islands law. In addition, upon payments of dividends by these entity to the shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong The Company’ subsidiaries incorporated in Hong Kong are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 8.25 % on assessable profits arising in or derived from Hong Kong up to HKD 2,000,000 and 16.5 % on any part of assessable profits over HKD 2,000,000 . These companies did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. USA The Company’s subsidiary in USA is subject to profits tax at 21 % statutory tax rate with respect to the profit generated from the USA. The company did not make any provisions for USA profit tax as there were no assessable profits derived from or earned in USA since inception. Singapore The company incorporated in Singapore is subject to Singapore Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Singapore tax laws. The applicable tax rate is 17 % in Singapore, with 75 % of the first SGD 100,000 (approximately RMB 470,000 ) and 50 % of the next SGD 100,000 (approximately RMB 470,000 ) taxable income exempted from income tax. The company did not make any provisions for Singapore income tax as there were no assessable profits derived from or earned in Singapore since inception. PRC The Company’s subsidiaries incorporated in the PRC are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. A new enterprise income tax law (the “EIT Law”) in the PRC was enacted and became effective on January 1, 2008. The EIT Law applies a uniform 25 % enterprise income tax (“EIT”) rate to both foreign invested enterprises and domestic enterprises. Accordingly, the Company’s PRC subsidiaries are subject to the EIT rate of 25 %. EIT grants preferential tax treatment to certain High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15 %, subject to a requirement that they re-apply for HNTE status every three years. Zhejiang Nanomicro obtained the “high-tech enterprise” tax status in December 2021, which reduced its statutory income tax rate to 15 % from December 2021 to December 2024. A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the Years Ended December 31, 2020 2021 2022 PRC statutory income tax rates 25.00 % 25.00 % 25.00 % Effect of expenses not deductible for tax purposes ( 0.38 )% ( 0.22 )% 0.91 % Effect of additional deduction of research and 21.50 % 15.18 % ( 64.43 )% Effect of income tax exemptions and reliefs 0.02 % ( 13.14 )% ( 56.77 )% Recovery from deferred income tax assets 0.00 % 0.00 % ( 97.39 )% Effect of valuation allowance on deferred income tax assets ( 46.16 )% ( 26.35 )% 171.26 % Income tax difference under different tax jurisdictions 0.00 % ( 0.47 )% 21.42 % Total ( 0.02 )% 0.00 % 0.00 % The provision for income taxes consists of the following: For the Years Ended December 31, 2020 2021 2022 RMB RMB RMB Current income tax expense 2,293 — — Deferred tax expense — — — Income tax expense 2,293 — — Significant component of deferred tax assets are as follows: As of December 31, 2021 2022 Net operating loss carryforward 53,517,161 63,038,127 Accrued expense and others 3,960,446 ( 29,335,373 ) Inventory impairment 5,004,834 47,198,866 Deferred tax assets 62,482,441 80,901,620 Less: valuation allowance ( 62,482,441 ) ( 80,901,620 ) Deferred tax assets — — The provision of valuation allowance for the years ended December 31, 2020, 2021 and 2022 were RMB 16,396,474 , RMB 42,631,572 and RMB 24,519,326 , respectively. The reversal of valuation allowance for the years ended December 31, 2020, 2021 and 2022 were nil, nil, and RMB 6,100,147 , respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of the Company’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Uncertain tax positions The tax authority of the PRC Government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. In general, the PRC tax authority has up to five years to conduct examinations of the tax filings of the Company’s PRC entities. Accordingly, the PRC subsidiaries’ tax years of 2019 through 2021 remain open to examination by the respective tax authorities. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s PRC entities’ tax filings, which may lead to additional tax liabilities. The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31,2021 and 2022, the Company did not have any significant unrecognized uncertain tax positions. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | 16. Related party transactions Related parties with whom the Company conducted business consist of the following: Name of related party Nature of Relationship Jianping Kong Principal shareholder, chairman and chief executive officer Qifeng Sun Principal shareholder and vice chairman Yingying Jin Family member of Jianping Kong Hangzhou Weiditu Technology Co., Ltd. Company controlled by Jianping Kong During the year ended December 31, 2020, the Company borrowed RMB 17,670,000 from Jianping Kong. During the year ended December 31, 2021, the Company repaid RMB 19,270,000 to Jianping Kong. As of December 31, 2021 and 2022, the amounts due to Jianping Kong were nil . During the year ended December 31, 2020, the Company borrowed RMB 12,085,000 from Qifeng Sun. During the year ended December 31, 2021, the Company repaid RMB 12,085,000 to Qifeng Sun. As of December 31, 2021 and 2022, the amounts due to Qifeng Sun were nil . During the year ended December 31, 2020, the Company borrowed RMB 500,000 from and repaid RMB 890,000 to Yingying Jin. As of December 31, 2021 and 2022, the amounts due to Yingying Jin were nil . During the year ended December 31, 2020, the Company lent RMB 2,270,000 to and collected RMB 1,560,000 from Hangzhou Weiditu Technology Co., Ltd. During the year ended December 31, 2021, the Company lent RMB 100,000 to and collected RMB 4,490,000 from Hangzhou Weiditu Technology Co., Ltd. As of December 31, 2021 and 2022, the amounts due from Hangzhou Weiditu Technology Co., Ltd. were nil . During the year ended December 31, 2021, the Company purchased raw materials and services in amount of RMB 328,411 from Hangzhou Weiditu Technology Co., Ltd., and made payment in amount of RMB 5,045,392 to it. As of December 31, 2021 and 2022, the accounts payable to Hangzhou Weiditu Technology Co., Ltd. were nil . The amounts due from related party and due to related parties are unsecured, non-interest bearing and due on demand. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations | 17. Concentrations The following table sets forth information as to each customer that accounted for 10 % or more of the Company’s revenues for the years ended December 31, 2020, 2021 and 2022: For the Years Ended December 31, 2020 2021 2022 Customer A 47 % 59 % — Customer B 22 % — — Customer C 14 % — — Customer D — 15 % — The following table sets forth information as to each supplier that accounted for 10 % or more of the Company’s purchase for the years ended December 31, 2020, 2021 and 2022: For the Years Ended December 31, 2020 2021 2022 Supplier A 38 % — — Supplier B 36 % — — Supplier C — 50 % 32 % Supplier D — 34 % — Supplier E — 13 % 23 % |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 18. Commitments and contingencies Operating lease commitments The information of lease commitments is provided in Note 8. Contin gencies The Company is subject to litigation matters from time to time in the normal cause of business. The Company’s legal counsel and the management routinely assess the likelihood of adverse judgments and outcomes to these matters, as well as ranges of probable losses. Accruals are recorded for these matters to the extent that management concludes a loss is probable and the financial impact, should an adverse outcome occur, is reasonable estimable. The Company has not recorded any material liabilities in this regard as of December 31, 2021 and 2022. During the year ended December 31, 2022, a customer filed a civil action against the Company for a sales contract dispute, claiming the contract should be annulled and demanding a return of payment made for the contract of RMB 44,941,000 and indemnity of RMB 1,680,527 . As of the filing date, the management of the Company, together with the trial counsel of this case, believe the possibility of an unfavorable outcome is reasonably possible. However, the amount liable by the Company in the event of an unfavorable outcome cannot be reasonably estimated. Two bank accounts of the Company were judicially frozen by the court as a result of the legal proceedings. The frozen amount as of December 31, 2022 and the date of this annual report was RMB 48,112 and RMB 324 , respectively. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | 19. Subsequent events The following subsequent events were evaluated on April 18, 2023, the date the financial statements were issued. Except as set forth below, there were no events that occurred subsequent to December 31, 2022 that require adjustment to or disclosure in the consolidated financial statements. In January 2023, the employee who holds options submitted an exercise notice and elected to exercise the vested options to purchase 166,666 ordinary shares of the Company with an exercise price of US$ 0.0002 per share. As of the date the financial statements were issued, the share issuance procedure is still under progress and the shares have not been issued to the employee yet. From January to April 2023, the Company borrowed approximately RMB 26.7 million in total from Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co., Ltd under the credit line pledged by the land use right of the Company mentioned in Note 10. The additional borrowings bear an annual interest rate of 5.4 % with repayment dates for parts of the loan ranging from June 20, 2023 to July 25, 2030 . |
Parent - only financial stateme
Parent - only financial statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent-only financial statements | 20. Parent-only financial statements The Company performed a test on the restricted net assets of the consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only. The subsidiaries did not pay any dividend to the Company for the periods presented. Certain information and footnote disclosures generally included in the financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. These statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Basis of presentation The financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investments in its subsidiaries. The following represents condensed financial information of the parent company: As of December 31, 2021 2022 RMB RMB US$ ASSETS/(LIABILITIES) Cash and cash equivalents 88,571 25,769 3,700 Short-term investments 31,878,500 — — Prepayments 374,120 — — Due from intercompany 168,505,129 380,321,338 54,607,780 Investment in subsidiaries ( 225,380,481 ) ( 215,932,707 ) ( 31,004,323 ) Other payables ( 127,514 ) — — TOTAL ASSETS (LIABILITIES) ( 24,661,675 ) 164,414,400 23,607,157 SHAREHOLDERS’ EQUITY (DEFICIT) Shareholders’ equity (deficit): Ordinary shares ($ 0.0001 par value; 500,000,000 and 200,000,000 shares authorized as of December 31, 2021 and December 31, 2022, respectively; 103,790,000 and nil shares issued and outstanding as of December 31, 2021 and December 31, 2022, respectively) 66,970 — — Class A ordinary shares ($ 0.0001 par value; 242,821,846 shares authorized; nil and 54,318,514 shares issued and outstanding as of December 31, 2021 and December 31, 2022, respectively) — 35,425 5,086 Class B ordinary shares ($ 0.0001 par value; 57,178,154 shares authorized; nil and 57,178,154 shares issued and outstanding as of December 31, 2021 and December 31, 2022, respectively) — 36,894 5,297 Additional paid-in capital 201,418,380 354,803,564 50,943,854 Accumulated deficit ( 223,679,698 ) ( 199,207,921 ) ( 28,602,923 ) Statutory reserves — 6,647,109 954,414 Accumulated other comprehensive income (loss) ( 2,467,327 ) 2,099,329 301,429 TOTAL NANO LABS LTD SHAREHOLDERS’ EQUITY (DEFICIT) ( 24,661,675 ) 164,414,400 23,607,157 For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net revenues — — — — Operating expenses: Selling and marketing expenses — 980 — — General and administrative expenses — 306,775 5,822,906 836,072 Total operating expenses — 307,755 5,822,906 836,072 Loss from operations — ( 307,755 ) ( 5,822,906 ) ( 836,072 ) Finance income — — 66,144 9,497 Investment income — — 53,809 7,726 Income (loss) from investment in subsidiaries ( 37,704,077 ) ( 174,636,729 ) 36,821,839 5,287,000 Net income (loss) attributable to Nano Labs Ltd ( 37,704,077 ) ( 174,944,484 ) 31,118,886 4,468,151 Comprehensive income (loss): Net income (loss) ( 37,704,077 ) ( 174,944,484 ) 31,118,886 4,468,151 Other comprehensive income (loss) Foreign currency translation adjustment — ( 2,467,327 ) 4,566,656 655,695 Total comprehensive income (loss) attributable to Nano Labs Ltd ( 37,704,077 ) ( 177,411,811 ) 35,685,542 5,123,846 For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net cash provided by (used in) operating activities — ( 535,017 ) 3,911,561 561,635 Net cash used in investing activities — ( 201,554,446 ) ( 155,900,936 ) ( 22,384,765 ) Net cash provided by financing activities — 201,251,124 144,043,186 20,682,191 Effect of exchange rate changes on cash and cash equivalents — 926,910 7,883,387 1,131,921 Net increase (decrease) in cash and cash equivalents — 88,571 ( 62,802 ) ( 9,018 ) Cash and cash equivalents at beginning of the year — — 88,571 12,718 Cash and cash equivalents at end of the year — 88,571 25,769 3,700 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for information pursuant to the rules and regulations of the SEC. Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Use Of Estimates | Use of estimates The preparation of the Company’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company's consolidated financial statements including, but not limited to, inventory write-down, valuation allowance for deferred tax assets and share-based compensation. |
Principles of consolidation | Principles of consolidation The Company’s consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. |
Functional currency and foreign currency translation | Functional currency and foreign currency translation The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of PRC is the United States dollar (“US$”), while the functional currency of the PRC entities in the Company is RMB as determined based on the criteria of ASC 830, “ Foreign Currency Matters” . Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of operations and comprehensive income (loss). The financial statements of the Company are translated from the functional currency to the reporting currency, RMB. Assets and liabilities of the Company and its subsidiaries incorporated outside of PRC are translated into RMB at fiscal year-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the fiscal year, representing the index rates stipulated by the People’s Bank of China. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as a separate component of shareholders’ equity (deficit) on the consolidated financial statement. |
Convenience translation | Convenience translation The United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the readers. Translations of amounts from RMB into US$ were calculated at the rate of US$1.00=RMB6.9646 on December 31, 2022, representing the central parity rate on December 31, 2022 published by the People’s Bank of China. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2022, or at any other rate. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions with high credit ratings and quality. |
Fair value measurement | Fair value measurement The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for similar assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. ASC 820 also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial instruments included in current assets and current liabilities except for short-term investments are reported in the consolidated balance sheets at face value or cost, which approximate to fair value because of their short-term maturities. Short-term investments represent wealth management products that have original maturities of less than three months. The Company values its wealth management products using alternative market observable inputs and accordingly classifies the valuation techniques that use these inputs as Level 2. |
Related party transactions | Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash in bank and time deposits placed with banks or other financial institutions, which have original maturities of three months or less and are readily convertible to known amounts of cash. As of December 31, 2021 and 2022, cash and cash equivalents in banks was RMB 233,853,654 and RMB 87,811,272 , respectively. |
Restricted cash | Restricted cash Restricted cash mainly represents the bank deposit frozen by the court as a result of legal proceedings. As of December 31, 2021 and 2022, the Company had restricted cash balance of nil and RMB 48,112 , respectively. |
Short-term investments | Short-term investments Short-term investments include wealth management products purchased from banks, which are certain deposits with variable interest rates or principal not-guaranteed. The wealth management products have short original maturities of less than three months and the carrying value approximates to fair value. |
Inventories, net | Inventories, net Inventories, consist of raw materials, work in process and finished goods. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. |
Prepayments | Prepayments Prepayments primarily consist of advances to suppliers for future inventory purchases and prepaid processing fees. |
Property and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. The estimated useful lives are as follows: Computers and electronic equipment 2 to 3 years Office furniture 5 years Transportation equipment 4 years Leasehold improvements are depreciated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction in progress represents assets under construction. All direct costs relating to the construction are capitalized as construction in progress. Construction in progress is not depreciated until the asset is placed in service. |
Intangible asset, net | Intangible asset, net The Company’s intangible asset with definite useful lives primarily consists of a franchise right and land use right. According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. The Company amortizes its franchise right and land use right on a straight-line basis over the contractual term. The estimated useful lives are as follows: Franchise right 2 years Land use right 50 years |
Impairment of long-lived assets | Impairment of long-lived assets For long-lived assets including property, plant and equipment, right-of-use assets, and intangible assets with finite lives, the Company evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. For the years ended December 31, 2020, 2021 and 2022, no impairment of long-lived assets was recognized. |
Revenue from contracts with customers | Revenue from contracts with customers Consistent with the criteria of ASC 606 “Revenue from Contracts with Customers”, the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. Revenue consists of the invoiced value for the sales net of value-added tax (“VAT”), business tax and applicable local government levies. Product sales revenue The Company generates revenue primarily from the sale of product solutions by integrating its self-designed IC products (e.g., high throughput computing, or HTC, solutions) directly to a customer, such as a business or individual engaged in mining activities. The Company recognizes revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or shipped to customers. The Company’s sales arrangements usually require prepayment before the delivery of products. The advance payment is not considered a significant financing component. The Company elected to account for shipping and handling fees as a fulfillment cost. The product sales contracts generally include product warranty provisions. The Company did not accrue warranty liabilities for the product sales as the financial impacts of the warranty have historically been and are expected to continue to be immaterial. Service revenue The Company also generates revenue from its design and technical services under separate contracts. Revenues from the design and technical service to the customers are recognized at a point in time when services are provided. Revenue disaggregation In accordance with ASC 606, the Company disaggregates revenue from contracts with customers by revenue stream. The Company determined that disaggregating revenue into these categories meets the disclosure objective in ASC 606 which is to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. The following table summarizes the net revenues generated from different revenue streams: Contract liabilities Contract liabilities are recorded when consideration is received from a customer prior to transferring the control of goods or services to the customer. As of December 31, 2021 and 2022, the Company recorded contract liabilities of RMB 917,391,899 and RMB 124,469,097 , respectively, which were presented as advance from customers on the accompanying consolidated balance sheets. During the years ended December 31, 2020, 2021 and 2022, the Company rec ognized RMB 1,165,716 , RMB 4,241,270 and RMB 804,875,532 of contract liabilities as revenue, respectively. |
Cost of revenues | Cost of revenues Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate revenue. Such costs are recorded as incurred. Cost of revenues consists of product costs and service costs. Product costs include costs of raw material, contract manufacturers for production, shipping and handling costs, and warehousing costs. Service costs include labor costs. During the years ended December 31, 2020, 2021 and 2022, the Company recorded inventory write-down of nil , RMB 26,753,768 and RMB 184,073,191 a s cost of revenues, respectively. |
Selling and marketing expenses | Selling and marketing expenses Selling and marketing expenses consist primarily of advertising and promotion, salaries, and shipping and handling costs incurred during the selling activities. Advertising and transportation expenses are charged to expense as incurred. Advertising and promotion costs in the amounts of RMB 108,567 , RMB 992,996 and RMB 10,901,200 for the years ended December 31, 2020, 2021 and 2022, respectively, are included in selling and marketing expenses. Shipping and handling costs amounting to nil , RMB 371,769 and RMB 4,233,084 for the years ended December 31, 2020, 2021 and 2022, respectively, are included in selling and marketing expenses. |
Research and development expenses | Research and development expenses Research and development expenses consist primarily of salary and welfare for research and development personnel, raw materials used, consulting and contractor expenses, testing and processing expenses and other expenses in associated with research and development activities. The Company recognizes research and development expenses as expense when incurred. |
Leases | Leases Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such leases on a straight-line basis over the lease term. |
Employee social security and welfare benefits | Employee social security and welfare benefits Employees of the Company in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Company is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Company’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made. |
Share-based compensation | Share-based compensation Restricted shares and options granted to employees and directors are accounted for under ASC Topic 718, “Compensation - Stock compensation” (“ASC 718”). In accordance with ASC 718, the Company determines whether restricted shares or options should be classified and accounted for as an equity award. All grants of restricted shares and options to employees and directors classified as equity awards are recognized in the financial statements based on their grant date fair values. The value of the portion of the award that is ultimately expected to vest is recognized as compensation expense over the requisite service periods in the statements of operations. In addition, compensation expense must be recognized for the change in fair value of any awards modified, repurchased or cancelled after the grant date. The fair value of stock option granted is estimated on the grant date using the binomial model. |
Income taxes | Income taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the tax income rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded if it is more likely than not that some portion or all of the deferred income tax assets will not be realized in the foreseeable future. In accordance with the provisions of ASC 740, “Income taxes”, the Company recognizes in its financial statements the impact of a tax position if a tax return position or future tax position is “more likely than not” to be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Interest and penalties arising from underpayment of income taxes are computed in accordance with the applicable tax law and is classified in the consolidated statements of operations as income tax expense. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income/(loss) is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments from shareholders and distributions to shareholders. Comprehensive income (loss) for the periods presented includes net income (loss) and foreign currency translation adjustments. |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings (loss) per share in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year. Dilutive equivalent shares are excluded from the computation of diluted earnings (loss) per share if their effects would be anti- dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Company’s ordinary shares issuable upon the conversion of the share-based awards, using the treasury stock method. |
Segment Reporting | Segment Reporting The Company uses the “management approach” in determining reportable segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by marketing channel. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
Recently adopted or issued accounting pronouncements | Recently adopted or issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments (Topic 326)”, and issued subsequent amendments to the initial guidance, transitional guidance and other interpretive guidance between November 2018 and March 2020 within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02 and ASU 2020-03. ASU 2016-13 introduces new guidance for credit losses on instruments within its scope, which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life, instead of when incurred. For the Company, the guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. All entities may adopt this ASU through a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company adopted ASU 2016-13 on January 1, 2023 and the adoption did not have a material impact on its consolidated financial statements. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Major Subsidiaries | The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries. As of the date of this report, the Company’s major subsidiaries are as follows: Name of subsidiaries Date of incorporation Place of incorporation Ownership percentage Principal activities Zhejiang Haowei Technology Co., Ltd. (“Zhejiang July 16, 2019 Hangzhou, China 100 % Research and development of ICs Zhejiang Nanomicro Technology Co., Ltd. (“Zhejiang July 16, 2019 Hangzhou, China 100 % Research and development of ICs Zhejiang NanoBlock Technology Co., Ltd. July 16, 2019 Hangzhou, China 100 % Research and development of ICs Zhejiang Ipollo Technology Co., Ltd. August 18, 2020 Hangzhou, China 100 % Distribution of products Nano Labs HK Limited September 8, 2020 Hong Kong 100 % Investment Nano Labs Inc December 22, 2020 BVI 100 % Investment Name of subsidiaries Date of Place of Ownership Principal Zhejiang Weike Technology Co., Ltd. June 2, 2021 Hangzhou, China 100 % Research and development of software IPOLLO PTE. LTD. (formerly IPOLLO MINER PTE.LTD.) June 9, 2021 Singapore 100 % Distribution of products Ipollo Tech Inc June 29, 2021 BVI 100 % Investment Nano Tech Cayman Ltd July 6, 2021 Cayman 100 % Investment Nano Technology HK Limited July 7, 2021 Hong Kong 100 % Investment Ipollo HK Limited July 7, 2021 Hong Kong 100 % Distribution of products Zhejiang Metaverse Technology Co., Ltd. August 12, 2021 Hangzhou, China 100 % Investment Ipollo Tech Ltd October 27, 2021 Cayman 100 % Investment Haowei Technology (Shaoxing) Co., Ltd. November 3, 2021 Shaoxing, China 100 % Investment Shenzhen Matamata Technology Co., Ltd. November 17, 2021 Shenzhen, China 100 % Distribution of products Shenzhen Matavos Technology Co., Ltd. December 21, 2021 Shenzhen, China 100 % Distribution of products Tsuki Inc January 7, 2022 United States 100 % Distribution of products Metaski (Shaoxing) Technology Co., Ltd. January 13, 2022 Shaoxing, China 100 % Distribution of products Haoweiverse (Shaoxing) Technology Co., Ltd. January 13, 2022 Shaoxing, China 65 % Plant and distribution of products Metameta (Shaoxing) Technology Co., Ltd. January 25, 2022 Shaoxing, China 100 % Distribution of products Ipolloverse HK Limited May 18, 2022 Hong Kong 70 % Research and development Metaverse (Shaoxing) Technology Co., Ltd. May 20, 2022 Shaoxing, China 100 % Distribution of products Ipolloverse Cayman Ltd May 27, 2022 Cayman 70 % Investment Ipolloverse Tech Inc May 30, 2022 BVI 70 % Investment Hangzhou Meta Technology Co., Ltd. October 21, 2022 Hangzhou, China 100 % Distribution of products |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives are as follows: Computers and electronic equipment 2 to 3 years Office furniture 5 years Transportation equipment 4 years |
Schedule of Estimated Useful Lives of Intangible Assets | Franchise right 2 years Land use right 50 years |
Disaggregation of Revenue | The following table summarizes the net revenues generated from different revenue streams: For the Years Ended December 31, 2020 2021 2022 RMB RMB RMB Product sales revenue 2,004,074 39,440,897 920,653,911 Service revenue 122,602 — 62,514,987 Net revenues 2,126,676 39,440,897 983,168,898 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net consist of the following: As of December 31, 2021 2022 RMB RMB Raw materials 61,673,722 69,914,306 Work in process 115,246,904 158,693,203 Finished goods 63,703,393 81,807,783 Less: write-down of inventories ( 26,753,768 ) ( 208,213,546 ) Inventories, net 213,870,251 102,201,746 |
Prepayments (Tables)
Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expense, Current [Abstract] | |
Schedule of Prepayments | As of December 31, 2021 2022 RMB RMB Prepayments – inventories and processing fee 369,183,083 64,813,532 Prepayments – others 3,172,046 6,500,722 Prepayments 372,355,129 71,314,254 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: As of December 31, 2021 2022 RMB RMB Value-added tax recoverable 33,077,492 23,731,587 Deferred offering related expenses 7,108,562 — Deposits 919,630 3,434,080 Others 354,806 109,548 Total 41,460,490 27,275,215 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment, Net | Property, plant and equipment, net consist of the following: As of December 31, 2021 2022 RMB RMB Cost: Computers and electronic equipment 8,349,956 9,537,316 Office furniture 238,222 266,252 Leasehold improvement 1,395,308 1,550,648 Transportation equipment — 41,014 Construction in progress — 16,119,419 Less: Accumulated depreciation ( 2,734,442 ) ( 6,087,694 ) Property, plant and equipment, net 7,249,044 21,426,955 |
Intangible Asset, Net (Tables)
Intangible Asset, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Asset, Net | Intangible asset, net consists of the following: As of December 31, 2021 2022 RMB RMB Cost: Land use right — 49,292,208 Franchise right 334,865 334,865 Less: Accumulated amortization ( 334,865 ) ( 909,941 ) Intangible asset, net — 48,717,132 |
Estimated amortization expense | As of December 31, 2022, the future estimated amortization expenses are as below. Estimated amortization expense Years ended December 31, RMB 2023 985,844 2024 985,844 2025 985,844 2026 985,844 2027 985,844 Thereafter 43,787,912 Total 48,717,132 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The following component of lease cost are included in the Company’s consolidated statements of operations and comprehensive income (loss): For the year For the year For the year RMB RMB RMB Operating lease cost 389,799 3,277,780 11,385,312 Short-term lease cost 48,000 1,867,850 295,564 Total lease cost 437,799 5,145,630 11,680,876 |
Summary of Supplemental Disclosure Related to Operating Leases | Supplemental disclosure related to operating leases were as follows: For the year For the year For the year RMB RMB RMB Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases 335,162 5,068,864 5,822,406 As of December 31, As of December 31, Weighted average remaining lease term of operating leases (years) 1.86 1.65 Weighted average discount rate of operating leases 6.24 % 6.24 % |
Summary of Maturity of Operating Lease Liabilities | The following table summarizes the maturity of operating lease liabilities as of December 31, 2022: As of December 31, 2022 RMB 2023 4,239,198 2024 2,542,911 Thereafter — Total lease payments 6,782,109 Less: imputed interest ( 68,633 ) Total lease liabilities 6,713,476 |
Other current liabilities (Tabl
Other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other current liabilities | Other current liabilities consist of the following: As of December 31, As of December 31, RMB RMB Salary accrual 6,591,805 8,536,985 Deposit — 10,000,000 Tax accrual 321,443 13,609,170 Others 4,509 7,253,377 Total 6,917,757 39,399,532 |
Long-term debts (Tables)
Long-term debts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of future maturities of long-term debts | As of December 31, 2022, the future maturities of long-term debts are as below: As of December 31, RMB 2023 280,000 2024 420,000 2025 560,000 2026 700,000 2027 840,000 Thereafter 14,153,316 Total 16,953,316 |
Share based compensation (Table
Share based compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of RSUs activity | The following table summarized the RSUs activity and related information for the year ended December 31, 2022: Number of RSUs Weighted Average Grant Date Fair Value (RMB) Unvested, January 1, 2022 6,181,420 0.01 Granted — — Forfeited 162,262 0.01 Vested 2,006,384 0.01 Unvested, December 31, 2022 4,012,774 0.01 |
Schedule of Summary of Option Activities | The option granted was valued using the binomial model with the assistance of an independent valuation firm using the management’s estimates and assumptions. Significant assumptions used in the valuation are set as below: January 1, 2022 Spot price on valuation date US$ 4.80 Expected volatility 137.01 % Risk-free interest rate 1.51 % Dividend yield 0.00 % Forfeiture rate 0.00 % |
Schedule of Summary of Share Option Activity | The following table summarizes the share option activity and related information for the year ended December 31, 2022: Number of Options Weighted Average Exercise Price (RMB) Weighted Average Remaining Term (Years) Weighted Average Grant Date Fair Value (RMB) Outstanding as of 1/1/2022 — — — — Granted 500,000 0.001 10.00 30.47 Forfeited — — — — Exercised — — — — Outstanding as of 12/31/2022 500,000 0.001 9.00 30.47 Vested and exercisable as of December 31, 2022 166,666 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation Between the Effective Income Tax Rate and PRC Statutory Income Tax Rate | A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the Years Ended December 31, 2020 2021 2022 PRC statutory income tax rates 25.00 % 25.00 % 25.00 % Effect of expenses not deductible for tax purposes ( 0.38 )% ( 0.22 )% 0.91 % Effect of additional deduction of research and 21.50 % 15.18 % ( 64.43 )% Effect of income tax exemptions and reliefs 0.02 % ( 13.14 )% ( 56.77 )% Recovery from deferred income tax assets 0.00 % 0.00 % ( 97.39 )% Effect of valuation allowance on deferred income tax assets ( 46.16 )% ( 26.35 )% 171.26 % Income tax difference under different tax jurisdictions 0.00 % ( 0.47 )% 21.42 % Total ( 0.02 )% 0.00 % 0.00 % |
Schedule of Provision For Income Taxes | The provision for income taxes consists of the following: For the Years Ended December 31, 2020 2021 2022 RMB RMB RMB Current income tax expense 2,293 — — Deferred tax expense — — — Income tax expense 2,293 — — |
Schedule of Component of Deferred Tax Assets | Significant component of deferred tax assets are as follows: As of December 31, 2021 2022 Net operating loss carryforward 53,517,161 63,038,127 Accrued expense and others 3,960,446 ( 29,335,373 ) Inventory impairment 5,004,834 47,198,866 Deferred tax assets 62,482,441 80,901,620 Less: valuation allowance ( 62,482,441 ) ( 80,901,620 ) Deferred tax assets — — |
Earning (loss) per share (Table
Earning (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of income and share data used in basic and diluted earnings (loss) per ordinary share computations | The following reflects the income and share data used in the basic and diluted earnings (loss) per ordinary share computations: For the years ended December 31, 2020 2021 2022 RMB RMB RMB Earnings (loss) attributable to ordinary shareholders of the Company ( 37,704,077 ) ( 174,944,484 ) 31,118,886 Weighted average number of ordinary shares outstanding for basic earnings (loss) per share calculation 79,249,000 89,877,975 106,488,996 Basic earnings (loss) per share ( 0.48 ) ( 1.95 ) 0.29 Earnings (loss) attributable to ordinary shareholders of the Company for diluted earnings (loss) per share calculation ( 37,704,077 ) ( 174,944,484 ) 31,118,886 Weighted average number of ordinary shares outstanding diluted earnings (loss) per share calculation 79,249,000 89,877,975 106,488,996 Adjusted for: - incremental shares issuable related to options issued — — 126,214 Weighted average number of shares outstanding for diluted earnings (loss) per share calculation 79,249,000 89,877,975 106,615,210 Diluted earnings (loss) per share ( 0.48 ) ( 1.95 ) 0.29 |
Concentration (Tables)
Concentration (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Product Information [Line Items] | |
Schedule of Concentration Risk, Customer | The following table sets forth information as to each customer that accounted for 10 % or more of the Company’s revenues for the years ended December 31, 2020, 2021 and 2022: For the Years Ended December 31, 2020 2021 2022 Customer A 47 % 59 % — Customer B 22 % — — Customer C 14 % — — Customer D — 15 % — |
Supplier Concentration [Member] | |
Product Information [Line Items] | |
Schedule of Concentration Risk, Customer | The following table sets forth information as to each supplier that accounted for 10 % or more of the Company’s purchase for the years ended December 31, 2020, 2021 and 2022: For the Years Ended December 31, 2020 2021 2022 Supplier A 38 % — — Supplier B 36 % — — Supplier C — 50 % 32 % Supplier D — 34 % — Supplier E — 13 % 23 % |
Parent - only financial state_2
Parent - only financial statements (Tables) - Parent Company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |
CONDENSED BALANCE SHEETS | NANO LABS LTD CONDENSED BALANCE SHEETS (all amounts in RMB and US$, except number of shares or as otherwise noted) As of December 31, 2021 2022 RMB RMB US$ ASSETS/(LIABILITIES) Cash and cash equivalents 88,571 25,769 3,700 Short-term investments 31,878,500 — — Prepayments 374,120 — — Due from intercompany 168,505,129 380,321,338 54,607,780 Investment in subsidiaries ( 225,380,481 ) ( 215,932,707 ) ( 31,004,323 ) Other payables ( 127,514 ) — — TOTAL ASSETS (LIABILITIES) ( 24,661,675 ) 164,414,400 23,607,157 SHAREHOLDERS’ EQUITY (DEFICIT) Shareholders’ equity (deficit): Ordinary shares ($ 0.0001 par value; 500,000,000 and 200,000,000 shares authorized as of December 31, 2021 and December 31, 2022, respectively; 103,790,000 and nil shares issued and outstanding as of December 31, 2021 and December 31, 2022, respectively) 66,970 — — Class A ordinary shares ($ 0.0001 par value; 242,821,846 shares authorized; nil and 54,318,514 shares issued and outstanding as of December 31, 2021 and December 31, 2022, respectively) — 35,425 5,086 Class B ordinary shares ($ 0.0001 par value; 57,178,154 shares authorized; nil and 57,178,154 shares issued and outstanding as of December 31, 2021 and December 31, 2022, respectively) — 36,894 5,297 Additional paid-in capital 201,418,380 354,803,564 50,943,854 Accumulated deficit ( 223,679,698 ) ( 199,207,921 ) ( 28,602,923 ) Statutory reserves — 6,647,109 954,414 Accumulated other comprehensive income (loss) ( 2,467,327 ) 2,099,329 301,429 TOTAL NANO LABS LTD SHAREHOLDERS’ EQUITY (DEFICIT) ( 24,661,675 ) 164,414,400 23,607,157 |
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | NANO LABS LTD CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (all amounts in RMB and US$, except number of shares or as otherwise noted) For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net revenues — — — — Operating expenses: Selling and marketing expenses — 980 — — General and administrative expenses — 306,775 5,822,906 836,072 Total operating expenses — 307,755 5,822,906 836,072 Loss from operations — ( 307,755 ) ( 5,822,906 ) ( 836,072 ) Finance income — — 66,144 9,497 Investment income — — 53,809 7,726 Income (loss) from investment in subsidiaries ( 37,704,077 ) ( 174,636,729 ) 36,821,839 5,287,000 Net income (loss) attributable to Nano Labs Ltd ( 37,704,077 ) ( 174,944,484 ) 31,118,886 4,468,151 Comprehensive income (loss): Net income (loss) ( 37,704,077 ) ( 174,944,484 ) 31,118,886 4,468,151 Other comprehensive income (loss) Foreign currency translation adjustment — ( 2,467,327 ) 4,566,656 655,695 Total comprehensive income (loss) attributable to Nano Labs Ltd ( 37,704,077 ) ( 177,411,811 ) 35,685,542 5,123,846 |
CONDENSED STATEMENTS OF CASH FLOWS | NANO LABS LTD CONDENSED STATEMENTS OF CASH FLOWS (all amounts in RMB and US$, except number of shares or as otherwise noted) For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ Net cash provided by (used in) operating activities — ( 535,017 ) 3,911,561 561,635 Net cash used in investing activities — ( 201,554,446 ) ( 155,900,936 ) ( 22,384,765 ) Net cash provided by financing activities — 201,251,124 144,043,186 20,682,191 Effect of exchange rate changes on cash and cash equivalents — 926,910 7,883,387 1,131,921 Net increase (decrease) in cash and cash equivalents — 88,571 ( 62,802 ) ( 9,018 ) Cash and cash equivalents at beginning of the year — — 88,571 12,718 Cash and cash equivalents at end of the year — 88,571 25,769 3,700 |
Organization and nature of op_3
Organization and nature of operations - Schedule of Major Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Zhejiang Haowei Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jul. 16, 2019 |
Place of incorporation | Hangzhou, China |
Ownership percentage | 100% |
Principal activities | Research and development of ICs |
Zhejiang Nanomicro Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jul. 16, 2019 |
Place of incorporation | Hangzhou, China |
Ownership percentage | 100% |
Principal activities | Research and development of ICs |
Zhejiang NanoBlock Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jul. 16, 2019 |
Place of incorporation | Hangzhou, China |
Ownership percentage | 100% |
Principal activities | Research and development of ICs |
Zhejiang Ipollo Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Aug. 18, 2020 |
Place of incorporation | Hangzhou, China |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Nano Labs HK Limited | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Sep. 08, 2020 |
Place of incorporation | Hong Kong |
Ownership percentage | 100% |
Principal activities | Investment |
Nano Labs Inc | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Dec. 22, 2020 |
Place of incorporation | BVI |
Ownership percentage | 100% |
Principal activities | Investment |
Zhejiang Weike Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jun. 02, 2021 |
Place of incorporation | Hangzhou, China |
Ownership percentage | 100% |
Principal activities | Research and development of software |
IPOLLO PTE LTD | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jun. 09, 2021 |
Place of incorporation | Singapore |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Ipollo Tech Inc | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jun. 29, 2021 |
Place of incorporation | BVI |
Ownership percentage | 100% |
Principal activities | Investment |
Nano Technology HK Limited | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jul. 07, 2021 |
Place of incorporation | Hong Kong |
Ownership percentage | 100% |
Principal activities | Investment |
Ipollo HK Limited | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jul. 07, 2021 |
Place of incorporation | Hong Kong |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Nano Tech Cayman Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jul. 06, 2021 |
Place of incorporation | Cayman |
Ownership percentage | 100% |
Principal activities | Investment |
Zhejiang Metaverse Technology | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Aug. 12, 2021 |
Place of incorporation | Hangzhou, China |
Ownership percentage | 100% |
Principal activities | Investment |
Ipollo Tech Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Oct. 27, 2021 |
Place of incorporation | Cayman |
Ownership percentage | 100% |
Principal activities | Investment |
Haowei Technology (Shaoxing) Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Nov. 03, 2021 |
Place of incorporation | Shaoxing, China |
Ownership percentage | 100% |
Principal activities | Investment |
Shenzhen Matamata Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Nov. 17, 2021 |
Place of incorporation | Shenzhen, China |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Shenzhen Matavos Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Dec. 21, 2021 |
Place of incorporation | Shenzhen, China |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Haoweiverse (Shaoxing) Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jan. 13, 2022 |
Place of incorporation | Shaoxing, China |
Ownership percentage | 65% |
Principal activities | Plant and distribution of products |
Metaski (Shaoxing) Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jan. 13, 2022 |
Place of incorporation | Shaoxing, China |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Metameta (Shaoxing) Technology Co Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Jan. 25, 2022 |
Place of incorporation | Shaoxing, China |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Ipolloverse HK Limited | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | May 18, 2022 |
Place of incorporation | Hong Kong |
Ownership percentage | 70% |
Principal activities | Research and development |
Metaverse (Shaoxing) Technology Co. Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | May 20, 2022 |
Place of incorporation | Shaoxing, China |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Ipolloverse Cayman Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | May 27, 2022 |
Place of incorporation | Cayman |
Ownership percentage | 70% |
Principal activities | Investment |
Ipolloverse Tech Inc | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | May 30, 2022 |
Place of incorporation | BVI |
Ownership percentage | 70% |
Principal activities | Investment |
Tsuki Inc | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Oct. 10, 2022 |
Place of incorporation | United States |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Hangzhou Meta Technology Co., Ltd | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of incorporation | Oct. 21, 2022 |
Place of incorporation | Hangzhou, China |
Ownership percentage | 100% |
Principal activities | Distribution of products |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | |||||||
Foreign Currency Exchange Rate Translation | US$1.00=RMB6.9646 | US$1.00=RMB6.9646 | |||||
Cash and cash equivalents | ¥ 87,811,272 | ¥ 233,853,654 | $ 12,608,229 | ||||
Restricted cash balance | 48,112 | 0 | $ 6,908 | ||||
Impairment of long-lived assets | $ | $ 0 | $ 0 | $ 0 | ||||
Contract liabilities | 124,469,097 | 917,391,899 | |||||
Contract liabilities as Revenue | 804,875,532 | 4,241,270 | ¥ 1,165,716 | ||||
Inventory write-down | 184,073,191 | $ 26,429,830 | 26,753,768 | 0 | |||
Advertising and promotion cost | 10,901,200 | 992,996 | ¥ 108,567 | ||||
Shipping and handling costs | ¥ 4,233,084 | ¥ 371,769 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computers and Electronic equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Net | 2 years |
Computers and Electronic equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Net | 3 years |
Office furniture | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Net | 5 years |
Transportation equipment | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Net | 4 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Franchise right | |
Finite-Lived Intangible Assets [Line Items] | |
Finite Lived Intangible Asset Useful Life | 2 years |
Land use right | |
Finite-Lived Intangible Assets [Line Items] | |
Finite Lived Intangible Asset Useful Life | 50 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Disaggregation of Revenue - (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | ¥ 983,168,898 | $ 141,166,599 | ¥ 39,440,897 | ¥ 2,126,676 |
Product sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 920,653,911 | 39,440,897 | 2,004,074 | |
Service revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | ¥ 62,514,987 | ¥ 0 | ¥ 122,602 |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories, Net (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Inventory Disclosure [Abstract] | |||
Raw materials | ¥ 69,914,306 | ¥ 61,673,722 | |
Work in progress | 158,693,203 | 115,246,904 | |
Finished goods | 81,807,783 | 63,703,393 | |
Less: write-down of inventories | (208,213,546) | (26,753,768) | |
Inventories, net | ¥ 102,201,746 | $ 14,674,460 | ¥ 213,870,251 |
Prepayments - Schedule of Prepa
Prepayments - Schedule of Prepayments (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Prepaid Expense, Current [Abstract] | |||
Prepayments - inventories and processing fee | ¥ 64,813,532 | ¥ 369,183,083 | |
Prepayments - others | 6,500,722 | 3,172,046 | |
Prepayments | ¥ 71,314,254 | $ 10,239,533 | ¥ 372,355,129 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Prepaid Expense and Other Assets [Abstract] | |||
Value-added tax recoverable | ¥ 23,731,587 | ¥ 33,077,492 | |
Deferred offering related expenses | 0 | 7,108,562 | |
Deposits | 3,434,080 | 919,630 | |
Others | 109,548 | 354,806 | |
Total | ¥ 27,275,215 | $ 3,916,264 | ¥ 41,460,490 |
Property, plant and equipment_3
Property, plant and equipment, net - Components of Property and Equipment, Net (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Less: Accumulated depreciation | ¥ (6,087,694) | ¥ (2,734,442) | |
Property, plant and equipment, net | 21,426,955 | $ 3,076,552 | 7,249,044 |
Computers and electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 9,537,316 | 8,349,956 | |
Office furniture | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 266,252 | 238,222 | |
Leasehold improvement | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,550,648 | 1,395,308 | |
Transportation equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 41,014 | 0 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | ¥ 16,119,419 | ¥ 0 |
Property, plant and equipment_4
Property, plant and equipment, net - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | ¥ 3,353,055 | ¥ 2,510,398 | ¥ 187,277 |
Intangible Asset, Net - Schedul
Intangible Asset, Net - Schedule of Intangible asset, Net (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Finite-Lived Intangible Assets [Line Items] | |||
Less: Accumulated amortization | ¥ (909,941) | ¥ (334,865) | |
Intangible asset, net | 48,717,132 | $ 6,994,964 | 0 |
Land use right | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 49,292,208 | 0 | |
Franchise right | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | ¥ 334,865 | ¥ 334,865 |
Intangible Asset, Net - Additio
Intangible Asset, Net - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | ¥ 575,076 | ¥ 99,301 | ¥ 166,280 | |
Land use right ,net value | ¥ 48,717,132 | ¥ 0 | $ 6,994,964 |
Intangible Asset, Net - Sched_2
Intangible Asset, Net - Schedule of Future Estimated Amortization Expenses (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2023 | ¥ 985,844 | ||
2024 | 985,844 | ||
2025 | 985,844 | ||
2026 | 985,844 | ||
2027 | 985,844 | ||
Thereafter | 43,787,912 | ||
Total | ¥ 48,717,132 | $ 6,994,964 | ¥ 0 |
Operating leases - Schedule of
Operating leases - Schedule of Components of Lease Cost (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Component of Lease Cost Abstract | |||
Operating lease cost | ¥ 11,385,312 | ¥ 3,277,780 | ¥ 389,799 |
Short-term lease cost | 295,564 | 1,867,850 | 48,000 |
Total lease cost | ¥ 11,680,876 | ¥ 5,145,630 | ¥ 437,799 |
Operating leases - Summary of S
Operating leases - Summary of Supplemental Disclosure Related to Operating Leases (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Paid For Amounts Measurement of Lease Liabilities [Abstract] | |||
Operating cash flows for operating leases | ¥ 5,822,406 | ¥ 5,068,864 | ¥ 335,162 |
Weighted average remaining lease term of operating leases (years) | 1 year 7 months 24 days | 1 year 10 months 9 days | |
Weighted average discount rate of operating leases | 6.24% | 6.24% |
Operating leases - Summary of t
Operating leases - Summary of the Maturity of Operating Lease Liabilities (Details) | Dec. 31, 2022 CNY (¥) |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |
2023 | ¥ 4,239,198 |
2024 | 2,542,911 |
Thereafter | 0 |
Total lease payments | 6,782,109 |
Less: imputed interest | (68,633) |
Total lease liabilities | ¥ 6,713,476 |
Other current liabilities - Sch
Other current liabilities - Schedule of other current liabilities (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Other Liabilities, Current [Abstract] | |||
Salary accrual | ¥ 8,536,985 | ¥ 6,591,805 | |
Deposit | 10,000,000 | 0 | |
Tax accrual | 13,609,170 | 321,443 | |
Others | 7,253,377 | 4,509 | |
Total | ¥ 39,399,532 | $ 5,657,111 | ¥ 6,917,757 |
Long-term debts - Additional In
Long-term debts - Additional Information (Details) - Zhejiang Shaoxing Ruifeng Rural Commercial Bank [Member] - CNY (¥) | 12 Months Ended | |
Aug. 11, 2022 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | ¥ 100,000,000 | |
Expiration period of credit agreement | Jul. 25, 2030 | |
Amount borrowed | ¥ 17,093,316 | |
Repayments of credit facilities | ¥ 140,000 | |
Debt instrument, interest rate, stated percentage | 5.40% | |
Repayment dates | September 20, 2022 to July 25, 2030 |
Long-term debts - Outstanding b
Long-term debts - Outstanding balances of long-term debts (Details) | Dec. 31, 2022 CNY (¥) |
Debt Disclosure [Abstract] | |
2023 | ¥ 280,000 |
2024 | 420,000 |
2025 | 560,000 |
2026 | 700,000 |
2027 | 840,000 |
Thereafter | 14,153,316 |
Total | ¥ 16,953,316 |
Shareholders equity (deficit) -
Shareholders equity (deficit) - Additional Information (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 USD ($) $ / shares shares | Jul. 14, 2022 USD ($) $ / shares shares | Aug. 31, 2021 CNY (¥) shares | Aug. 31, 2021 USD ($) shares | Apr. 30, 2021 $ / shares | May 31, 2021 CNY (¥) shares | May 31, 2021 USD ($) shares | Mar. 31, 2021 USD ($) shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Jul. 12, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Nov. 30, 2021 shares | Jul. 31, 2021 shares | Jan. 08, 2021 USD ($) shares | |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Description of the shares subdivision | On January 8, 2021, Nano Labs Ltd was incorporated in the Cayman Islands. In April 2021, the Board of the Company approved a one-for-10,000 shares subdivision, following which the authorized share capital of US$50,000 was divided into 500,000,000 ordinary shares with a par value of US$0.0001 each.In January and March 2021, the Company issued ordinary shares, which equivalent to a total of 79,249,000 ordinary shares after the reorganization, to six original shareholders of Zhejiang Haowei with cash proceeds of US$7,925. In April and May 2021, the Company entered into agreements with fourteen new shareholders to issue a total of 20,751,000 ordinary shares for total cash proceeds of RMB 81,000,000 (approximately US$12,600,000). In July 2021, the total of 20,751,000 ordinary shares were issued and the proceeds had been fully collected as of December 31, 2021. In August 2021, the Company entered into agreements with six new shareholders to issue a total of 3,790,000 ordinary shares for total consideration of US$18,950,000 (approximately RMB122,300,000). In November 2021, the total of 3,790,000 shares were issued and the proceeds had been fully collected as of December 31, 2021. Immediately prior to the completion of the initial public offering (“IPO”) on July 12, 2022, the Company adopted a dual-class share structure, consisting of Class A ordinary shares and Class B ordinary shares, with par value of US$0.0001 per share. 57,178,154 ordinary shares, beneficially owned by Mr. Jianping Kong and Mr. Qifeng Sun, the founders of the Company, were re-designated into Class B ordinary shares on a one-for-one basis, and the remaining 46,611,846 ordinary shares were re-designated into Class A ordinary shares on a one-for-one basis.Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to 15 votes per share. Each Class B ordinary share is convertible at any time into one Class A ordinary share, while Class A ordinary shares are not convertible into Class B ordinary shares.On July 14, 2022, the Company completed the IPO with new issuance of totaling 1,770,000 ADSs representing 3,540,000 Class A ordinary shares at a price of US$11.50 per ADS or US$5.75 per ordinary share for gross proceeds of approximately US$20.4 million. The Company received all the net proceeds of approximately US$16.6 million after deducting underwriting discounts and commissions and other offering expenses by July 14, 2022. On September 30, 2022, the Company completed the supplemental offering with new issuance of totaling 2,083,334 ADSs representing 4,166,668 Class A ordinary shares at price of US$2.40 per ADS or US$1.20 per share for gross proceeds of approximately US$5.0 million. The Company received all the net proceeds of approximately US$4.5 million after deducting underwriting discounts and commissions and other offering expenses by October 5, 2022. As of December 31, 2021 and 2022, there were 103,790,000 and 111,496,668 ordinary shares issued and outstanding, respectively. | ||||||||||||||||
Share ratio | 0.00010 | ||||||||||||||||
Ordinary shares authorized | 200,000,000 | 500,000,000 | 500,000,000 | ||||||||||||||
Proceeds from issuance of common stock | ¥ 122,300,000 | $ 18,950,000 | ¥ 81,000,000 | $ 12,600,000 | $ 7,925 | ¥ 144,043,186 | $ 20,682,191 | ¥ 201,199,989 | ¥ 0 | ||||||||
Proceeds from issuance of ordinary shares | ¥ 122,300,000 | $ 18,950,000 | ¥ 81,000,000 | $ 12,600,000 | $ 7,925 | 144,043,186 | $ 20,682,191 | 201,199,989 | 0 | ||||||||
Authorized share capital | $ | $ 50,000 | ||||||||||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||
Ordinary shares issued | 3,790,000 | 3,790,000 | 20,751,000 | 20,751,000 | 79,249,000 | 111,496,668 | 103,790,000 | 3,790,000 | 20,751,000 | ||||||||
Ordinary shares outstanding | 111,496,668 | 103,790,000 | |||||||||||||||
Cash proceeds | ¥ 122,300,000 | $ 18,950,000 | ¥ 81,000,000 | $ 12,600,000 | $ 7,925 | ¥ 144,043,186 | $ 20,682,191 | ¥ 201,199,989 | ¥ 0 | ||||||||
Class A Ordinary Shares | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Ordinary shares authorized | 242,821,846 | 242,821,846 | |||||||||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||||
Ordinary shares issued | 54,318,514 | ||||||||||||||||
Ordinary shares outstanding | 54,318,514 | ||||||||||||||||
Class A Ordinary Shares | American Depositary Shares (ADS) | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Issuance of ordinary shares for cash (Shares) | 3,540,000 | ||||||||||||||||
Class B Ordinary Shares | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Ordinary shares authorized | 57,178,154 | 57,178,154 | |||||||||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||||
Ordinary shares issued | 57,178,154 | ||||||||||||||||
Ordinary shares outstanding | 57,178,154 | ||||||||||||||||
IPO [Member] | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Proceeds from Issuance Initial Public Offering | $ | $ 16,600,000 | ||||||||||||||||
IPO [Member] | American Depositary Shares (ADS) | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Issuance of ordinary shares for cash (Shares) | 1,770,000 | ||||||||||||||||
Sale of stock, price per share | $ / shares | $ 11.50 | ||||||||||||||||
IPO [Member] | Class A Ordinary Shares | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Ordinary shares outstanding | 46,611,846 | ||||||||||||||||
IPO [Member] | Class A Ordinary Shares | American Depositary Shares (ADS) | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Proceeds from Issuance Initial Public Offering | $ | $ 20,400,000 | ||||||||||||||||
Sale of stock, price per share | $ / shares | $ 5.75 | ||||||||||||||||
IPO [Member] | Class B Ordinary Shares | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | ||||||||||||||||
Ordinary shares outstanding | 57,178,154 | ||||||||||||||||
supplemental offering [Member] | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Net proceeds from sale of stock | $ | $ 4,500,000 | ||||||||||||||||
supplemental offering [Member] | American Depositary Shares (ADS) | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Issuance of ordinary shares for cash (Shares) | 2,083,334 | ||||||||||||||||
supplemental offering [Member] | Class A Ordinary Shares | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Sale of stock, price per share | $ / shares | $ 1.20 | ||||||||||||||||
supplemental offering [Member] | Class A Ordinary Shares | American Depositary Shares (ADS) | |||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||
Issuance of ordinary shares for cash (Shares) | 4,166,668 | ||||||||||||||||
Proceeds from issuance of common stock | $ | $ 5,000,000 | ||||||||||||||||
Proceeds from issuance of ordinary shares | $ | $ 5,000,000 | ||||||||||||||||
Sale of stock, price per share | $ / shares | $ 2.40 | ||||||||||||||||
Cash proceeds | $ | $ 5,000,000 |
Share based compensation - Addi
Share based compensation - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2022 $ / shares shares | Dec. 10, 2020 shares | Jan. 31, 2020 shares | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Jan. 31, 2022 shares | Sep. 30, 2021 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Percentage of vested | 33.30% | 33.30% | 33.30% | 33.30% | |||||||
Number of Options, Granted | 500,000 | 500,000 | 500,000 | ||||||||
Share-based compensation | ¥ 9,347,347 | $ 1,342,123 | ¥ 19,344 | ¥ 214,882 | |||||||
Share-based compensation related to option | ¥ | 9,329,484 | ||||||||||
Unrecognized compensation cost | ¥ | ¥ 5,887,864 | ||||||||||
Employee stock options, granted | 500,000 | 500,000 | 500,000 | ||||||||
Exercise price | (per share) | $ 0.0002 | ¥ 0.001 | |||||||||
Contractual term | 10 years | 10 years | 10 years | ||||||||
Reward vested date | 3 years | 2 years | 1 year | 1 year | |||||||
2022 Share Incentive Plan [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Restricted ordinary shares of share based compensation | 10,379,000 | 10,379,000 | |||||||||
Total issued and outstanding shares percentage | 10% | 10% | |||||||||
Maximum | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Weighted average period | 2 years | ||||||||||
Minimum | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Weighted average period | 1 year | 1 year | |||||||||
Restricted Stock [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Share-based compensation | ¥ | ¥ 17,863 | ¥ 19,344 | ¥ 214,882 | ||||||||
Unrecognized compensation cost | ¥ | ¥ 15,559 | ¥ 35,323 | |||||||||
Zhejiang Haowei Member | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Percentage of equity interest | 2.50% | ||||||||||
Percentage of vested | 33.30% | 33.30% | 33.30% | 33.30% | |||||||
Number of Options, Granted | 256,411 | ||||||||||
Restricted ordinary shares | 1,981,225 | ||||||||||
Ordinory shares | 11,253,356 | ||||||||||
Employee stock options, granted | 256,411 | ||||||||||
Zhejiang Haowei Member | Restricted Stock [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Percentage of equity interest | 4% | 8% | |||||||||
Number of Options, Granted | 400,000 | 800,000 | |||||||||
Employee stock options, granted | 400,000 | 800,000 | |||||||||
Jianping Kong [Member] | Restricted Stock [Member] | |||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||
Restricted ordinary shares | 9,272,131 |
Share based compensation - Summ
Share based compensation - Summary of RSUs activity (Details) | 12 Months Ended |
Dec. 31, 2022 ¥ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value, Granted | ¥ 30.47 |
Weighted Average Grant Date Fair Value Unvested, December 31, 2022 | ¥ 30.47 |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unvested, January 1, 2022 | shares | 6,181,420 |
Number of shares forfeited | shares | 162,262 |
Number of shares vested | shares | 2,006,384 |
Unvested, December 31, 2022 | shares | 4,012,774 |
Weighted Average Grant Date Fair Value, Unvested, January 1, 2022 | ¥ 0.01 |
Weighted Average Grant Date Fair Value, Forfeited | 0.01 |
Weighted Average Grant Date Fair Value, Vested | 0.01 |
Weighted Average Grant Date Fair Value Unvested, December 31, 2022 | ¥ 0.01 |
Share based compensation - Sche
Share based compensation - Schedule of Summary of Option Activities (Details) | Jan. 01, 2022 $ / shares |
Share-Based Payment Arrangement [Abstract] | |
Spot price on valuation date | $ 4.80 |
Expected volatility | 137.01% |
Risk-free interest rate | 1.51% |
Dividend yield | 0% |
Forfeiture rate | 0% |
Share based compensation - Sc_2
Share based compensation - Schedule of Summary of Share Option Activity (Details) | 12 Months Ended | ||
Jan. 01, 2022 ¥ / shares shares | Jan. 01, 2022 $ / shares shares | Dec. 31, 2022 ¥ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |||
Number of Options Outstanding as of 1/1/2022 | shares | 0 | 0 | 0 |
Number of Options, Granted | shares | 500,000 | 500,000 | 500,000 |
Number of Options, Forfeited | shares | 0 | ||
Number of Options, Exercised | shares | 0 | ||
Number of Options Outstanding as of 12/31/2022 | shares | 500,000 | ||
Vested and exercisable as of December 31, 2022 | shares | 166,666 | ||
Weighted Average Exercise Price Outstanding as of 1/1/2022 | ¥ / shares | ¥ 0 | ¥ 0 | |
Weighted Average Exercise Price, Granted | (per share) | $ 0.0002 | 0.001 | |
Weighted Average Exercise Price, Forfeited | ¥ / shares | 0 | ||
Weighted Average Exercise Price, Exercised | ¥ / shares | 0 | ||
Weighted Average Exercise Price, Outstanding as of 12/31/2022 | ¥ / shares | ¥ 0.001 | ||
Weighted Average Remaining Term, Granted | 10 years | 10 years | 10 years |
Weighted Average Remaining Term Outstanding as of 12/31/2022 | 9 years | ||
Weighted Average Grant Date Fair Value, Granted | ¥ / shares | ¥ 30.47 | ||
Weighted Average Grant Date Fair Value Unvested, December 31, 2022 | ¥ / shares | ¥ 30.47 |
Statutory Reserve - Additional
Statutory Reserve - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
Statutory Reserve Disclosure [Abstract] | |||
Statutory reserves | ¥ 6,647,109 | $ 954,414 | ¥ 0 |
Statutory general reserve, Description | Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Company is not required to make appropriation to other reserve funds and the Company does not have any intentions to make appropriations to any other reserve funds. |
Earning (loss) per share - Summ
Earning (loss) per share - Summary of income and share data used in basic and diluted earnings (loss) per ordinary share computations (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Earnings Per Share [Abstract] | ||||
Earnings (loss) attributable to ordinary shareholders of the Company | ¥ 31,118,886 | $ 4,468,151 | ¥ (174,944,484) | ¥ (37,704,077) |
Weighted average number of ordinary shares outstanding for basic earnings (loss) per share calculation | 106,488,996 | 106,488,996 | 89,877,975 | 79,249,000 |
Basic earnings (loss) per share | (per share) | ¥ 0.29 | $ 0.04 | ¥ (1.95) | ¥ (0.48) |
Earnings (loss) attributable to ordinary shareholders of the Company for diluted earnings (loss) per share calculation | ¥ 31,118,886 | $ 4,468,151 | ¥ (174,944,484) | ¥ (37,704,077) |
Weighted average number of ordinary shares outstanding diluted earnings (loss) per share calculation | 106,488,996 | 106,488,996 | 89,877,975 | 79,249,000 |
Incremental shares issuable related to options issued | 126,214 | 126,214 | 0 | 0 |
Weighted average number of shares outstanding for diluted earnings (loss) per share calculation | 106,615,210 | 106,615,210 | 89,877,975 | 79,249,000 |
Diluted earnings (loss) per share | (per share) | ¥ 0.29 | $ 0.04 | ¥ (1.95) | ¥ (0.48) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 SGD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate reconciliation, foreign income tax rate | 21.42% | 21.42% | 21.42% | (0.47%) | 0% |
Income tax rate reconciliation, tax exemptible income, percent | (56.77%) | (56.77%) | (56.77%) | (13.14%) | 0.02% |
Statutory income tax rate | 0% | 0% | 0% | 0% | (0.02%) |
Provision of valuation allowance | ¥ | ¥ 24,519,326 | ¥ 42,631,572 | ¥ 16,396,474 | ||
Reversal of valuation allowance | ¥ | ¥ 6,100,147 | ||||
USA | |||||
Income Tax Contingency [Line Items] | |||||
U.S federal income tax rate | 21% | 21% | 21% | ||
Hong Kong | Up to Two Million | |||||
Income Tax Contingency [Line Items] | |||||
Effective income tax rate reconciliation, foreign income tax rate | 8.25% | 8.25% | 8.25% | ||
Income tax assessable profit | $ | $ 2,000,000 | ||||
Hong Kong | Over Two Million | |||||
Income Tax Contingency [Line Items] | |||||
Effective income tax rate reconciliation, foreign income tax rate | 16.50% | 16.50% | 16.50% | ||
Income tax assessable profit | $ | $ 2,000,000 | ||||
Singapore | |||||
Income Tax Contingency [Line Items] | |||||
Effective income tax rate reconciliation, foreign income tax rate | 17% | 17% | 17% | ||
Singapore | Tax Exemption Scenario One | |||||
Income Tax Contingency [Line Items] | |||||
Income tax rate reconciliation, tax exemptible income, percent | 75% | 75% | 75% | ||
Income tax reconciliation tax exemptible income | $ 100,000 | ¥ 470,000 | |||
Singapore | Tax Exemption Scenario Two | |||||
Income Tax Contingency [Line Items] | |||||
Income tax rate reconciliation, tax exemptible income, percent | 50% | 50% | 50% | ||
Income tax reconciliation tax exemptible income | $ 100,000 | ¥ 470,000 | |||
PRC | |||||
Income Tax Contingency [Line Items] | |||||
Statutory income tax rate | 25% | 25% | 25% | ||
Preferential income tax rate | 15% | 15% | 15% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Between Effective Income Tax Rate and PRC Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
PRC statutory income tax rates | 25% | 25% | 25% |
Effect of expenses not deductible for tax purposes | 0.91% | (0.22%) | (0.38%) |
Effect of additional deduction of research and development expense | (64.43%) | 15.18% | 21.50% |
Effect of income tax exemptions and reliefs | (56.77%) | (13.14%) | 0.02% |
Recovery from deferred income tax assets | (97.39%) | 0% | 0% |
Effect of valuation allowance on deferred income tax assets | 171.26% | (26.35%) | (46.16%) |
Income tax difference under different tax jurisdictions | 21.42% | (0.47%) | 0% |
Total | 0% | 0% | (0.02%) |
Income Taxes - Significant Comp
Income Taxes - Significant Component of Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets, Net [Abstract] | ||
Net operating loss carryforward | $ 63,038,127 | $ 53,517,161 |
Accrued expense and others | 29,335,373 | 3,960,446 |
Inventory impairment | 47,198,866 | 5,004,834 |
Deferred tax assets, Gross | 80,901,620 | 62,482,441 |
Less: valuation allowance | (80,901,620) | (62,482,441) |
Deferred tax assets, Net | $ 0 | $ 0 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Current income tax expense | ¥ 0 | ¥ 0 | ¥ 2,293 | |
Deferred tax expense | 0 | 0 | 0 | |
Income tax expense | ¥ 0 | $ 0 | ¥ 0 | ¥ 2,293 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Proceeds from related parties | ¥ 0 | $ 0 | ¥ 0 | ¥ 30,255,000 |
Repayment to related parties | 0 | $ 0 | (31,355,000) | (890,000) |
Jianping Kong | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from related parties | 17,670,000 | |||
Repayment to related parties | 19,270,000 | |||
Amount due to | 0 | 0 | ||
Qifeng Sun | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from related parties | 12,085,000 | |||
Repayment to related parties | 12,085,000 | |||
Amount due to | 0 | 0 | ||
Yingying Jin | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from related parties | 500,000 | |||
Repayment to related parties | 890,000 | |||
Amount due to | 0 | 0 | ||
Hangzhou Weiditu Technology Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Amount due to | 0 | 0 | ||
Amount lent to | 100,000 | 2,270,000 | ||
Amount collected from | 4,490,000 | ¥ 1,560,000 | ||
Related Party Transaction, Purchases from Related Party | 328,411 | |||
Payment made in amount | 5,045,392 | |||
Accounts payable - related party | ¥ 0 | ¥ 0 |
Concentrations - Additional Inf
Concentrations - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sales Revenue [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10% | 10% | 10% |
Purchase [Member] | Supplier Concentration [Member] | Supplier [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10% | 10% | 10% |
Concentrations - Schedule of cu
Concentrations - Schedule of customer (Details) - Sales Revenue [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0% | 59% | 47% |
Customer B | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0% | 0% | 22% |
Customer C | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0% | 0% | 14% |
Customer D | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0% | 15% | 0% |
Concentrations - Schedule of su
Concentrations - Schedule of supplier (Details) - Purchase [Member] - Supplier Concentration [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplier A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0% | 0% | 38% |
Supplier B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0% | 0% | 36% |
Supplier C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 32% | 50% | 0% |
Supplier D [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0% | 34% | 0% |
Supplier E [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23% | 13% | 0% |
Commitments and Contigencies -
Commitments and Contigencies - Additional Information (Details) - Dec. 31, 2022 | USD ($) | CNY (¥) |
Loss Contingencies [Line Items] | ||
Other Parties Demand of Return Payment | $ | $ 44,941,000 | |
First Bank Account [Member] | ||
Loss Contingencies [Line Items] | ||
Frozen Amount | ¥ | ¥ 48,112 | |
Second Bank Account [Member] | ||
Loss Contingencies [Line Items] | ||
Frozen Amount | ¥ | ¥ 324 | |
Indemnification Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Other Parties Demand of Return Payment | $ | $ 1,680,527 |
Subsequent events - Additional
Subsequent events - Additional Information (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 01, 2022 shares | Jan. 31, 2023 CNY (¥) $ / shares shares | Dec. 31, 2022 shares | |
Subsequent Event [Line Items] | |||
Employee stock options, granted | 500,000 | 500,000 | |
Employee stock options, forfeited | 0 | ||
Zhejiang Shaoxing Ruifeng Rural Commercial Bank [Member] | |||
Subsequent Event [Line Items] | |||
Interest rate, stated percentage on additional borrowings | 5.40% | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Employee stock options, granted | 166,666 | ||
Stock option exercise price | $ / shares | $ 0.0002 | ||
Subsequent Event | Zhejiang Shaoxing Ruifeng Rural Commercial Bank [Member] | |||
Subsequent Event [Line Items] | |||
Repayment dates of loan | June 20, 2023 to July 25, 2030 | ||
Amount borrowed | ¥ | $ 26.7 | ||
Interest rate, stated percentage on additional borrowings | 5.40% |
Parent - only financial state_3
Parent - only financial statements - CONDENSED BALANCE SHEETS (Details) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
ASSETS/(LIABILITIES) | |||
Cash and cash equivalents | ¥ 87,811,272 | $ 12,608,229 | ¥ 233,853,654 |
Short-term investments | 0 | 0 | 31,888,500 |
Prepayments | 71,314,254 | 10,239,533 | 372,355,129 |
Other payables | 15,292,843 | 2,195,796 | 2,837,638 |
Total liabilities | 202,828,264 | 29,122,741 | 934,494,408 |
Shareholders' equity (deficit): | |||
Ordinary shares Value | 66,970 | ||
Additional paid-in capital | 354,803,564 | 50,943,854 | 201,418,380 |
Accumulated deficit | (199,207,921) | (28,602,923) | (223,679,698) |
Statutory reserves | 6,647,109 | 954,414 | 0 |
Accumulated other comprehensive income (loss) | 2,099,329 | 301,429 | (2,467,327) |
Total shareholders' deficit | 164,414,400 | 23,607,157 | (24,661,675) |
Class A Ordinary Shares | |||
Shareholders' equity (deficit): | |||
Ordinary shares Value | 35,425 | 5,086 | |
Class B Ordinary Shares | |||
Shareholders' equity (deficit): | |||
Ordinary shares Value | 36,894 | 5,297 | |
Parent Company | |||
ASSETS/(LIABILITIES) | |||
Cash and cash equivalents | 25,769 | 3,700 | 88,571 |
Short-term investments | 0 | 0 | 31,878,500 |
Prepayments | 0 | 0 | 374,120 |
Due from intercompany | 380,321,338 | 54,607,780 | 168,505,129 |
Investment in subsidiaries | (215,932,707) | (31,004,323) | (225,380,481) |
Other payables | 0 | 0 | (127,514) |
Total liabilities | 164,414,400 | 23,607,157 | (24,661,675) |
Shareholders' equity (deficit): | |||
Ordinary shares Value | 66,970 | ||
Additional paid-in capital | 354,803,564 | 50,943,854 | 201,418,380 |
Accumulated deficit | (199,207,921) | (28,602,923) | (223,679,698) |
Statutory reserves | 6,647,109 | 954,414 | 0 |
Accumulated other comprehensive income (loss) | 2,099,329 | 301,429 | (2,467,327) |
Total shareholders' deficit | 164,414,400 | 23,607,157 | ¥ (24,661,675) |
Parent Company | Class A Ordinary Shares | |||
Shareholders' equity (deficit): | |||
Ordinary shares Value | 35,425 | 5,086 | |
Parent Company | Class B Ordinary Shares | |||
Shareholders' equity (deficit): | |||
Ordinary shares Value | ¥ 36,894 | $ 5,297 |
Parent - only financial state_4
Parent - only financial statements - CONDENSED BALANCE SHEETS (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Jan. 08, 2021 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares authorized | 200,000,000 | 500,000,000 | 500,000,000 | ||||||
Ordinary shares issued | 111,496,668 | 103,790,000 | 3,790,000 | 3,790,000 | 20,751,000 | 20,751,000 | 79,249,000 | ||
Ordinary shares outstanding | 111,496,668 | 103,790,000 | |||||||
Class A Ordinary Shares | |||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||||
Ordinary shares authorized | 242,821,846 | 242,821,846 | |||||||
Ordinary shares issued | 54,318,514 | ||||||||
Ordinary shares outstanding | 54,318,514 | ||||||||
Class B Ordinary Shares | |||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||||
Ordinary shares authorized | 57,178,154 | 57,178,154 | |||||||
Ordinary shares issued | 57,178,154 | ||||||||
Ordinary shares outstanding | 57,178,154 | ||||||||
Parent Company | |||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||||
Ordinary shares authorized | 200,000,000 | 500,000,000 | |||||||
Ordinary shares issued | 0 | 103,790,000 | |||||||
Ordinary shares outstanding | 0 | 103,790,000 | |||||||
Parent Company | Class A Ordinary Shares | |||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||||
Ordinary shares authorized | 242,821,846 | 242,821,846 | |||||||
Ordinary shares issued | 54,318,514 | 0 | |||||||
Ordinary shares outstanding | 54,318,514 | 0 | |||||||
Parent Company | Class B Ordinary Shares | |||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | |||||||
Ordinary shares authorized | 57,178,154 | 57,178,154 | |||||||
Ordinary shares issued | 57,178,154 | 0 | |||||||
Ordinary shares outstanding | 57,178,154 | 0 |
Parent - only financial state_5
Parent - only financial statements - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Net revenues | ¥ 983,168,898 | $ 141,166,599 | ¥ 39,440,897 | ¥ 2,126,676 |
Operating expenses: | ||||
Selling and marketing expenses | 24,431,649 | 3,507,976 | 5,119,072 | 108,567 |
General and administrative expenses | 53,197,248 | 7,638,235 | 24,121,823 | 3,187,033 |
Total operating expenses | 209,480,499 | 30,077,894 | 174,696,076 | 37,772,084 |
Income (loss) from operations | 20,684,220 | 2,969,907 | (178,785,887) | (36,915,952) |
Net income (loss) | 31,118,886 | 4,468,151 | (174,944,484) | (37,704,077) |
Comprehensive income (loss): | ||||
Net income (loss) | 31,118,886 | 4,468,151 | (174,944,484) | (37,704,077) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | 4,566,656 | 655,695 | (2,467,327) | 0 |
Total comprehensive income (loss) | 35,685,542 | 5,123,846 | (177,411,811) | (37,704,077) |
Parent Company | ||||
Net revenues | 0 | 0 | 0 | 0 |
Operating expenses: | ||||
Selling and marketing expenses | 0 | 0 | 980 | 0 |
General and administrative expenses | 5,822,906 | 836,072 | 306,775 | 0 |
Total operating expenses | 5,822,906 | 836,072 | 307,755 | 0 |
Income (loss) from operations | (5,822,906) | (836,072) | (307,755) | 0 |
Finance income | 66,144 | 9,497 | 0 | 0 |
Investment income | 53,809 | 7,726 | 0 | 0 |
Income (loss) from investment in subsidiaries | 36,821,839 | 5,287,000 | (174,636,729) | (37,704,077) |
Net income (loss) | 31,118,886 | 4,468,151 | (174,944,484) | (37,704,077) |
Comprehensive income (loss): | ||||
Net income (loss) | 31,118,886 | 4,468,151 | (174,944,484) | (37,704,077) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | 4,566,656 | 655,695 | (2,467,327) | |
Total comprehensive income (loss) | ¥ 35,685,542 | $ 5,123,846 | ¥ (177,411,811) | ¥ (37,704,077) |
Parent - only financial state_6
Parent - only financial statements - CONDENSED STATEMENTS OF CASH FLOWS (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Net cash provided by (used in) operating activities | ¥ (274,940,789) | $ (39,476,896) | ¥ 71,732,868 | ¥ (3,027,899) |
Net cash used in investing activities | (33,182,870) | (4,764,504) | (36,046,123) | (1,646,776) |
Net cash provided by financing activities | 160,996,502 | 23,116,403 | 164,896,124 | 29,365,000 |
Effect of exchange rate changes on cash and cash equivalents | 1,132,887 | 162,663 | (2,062,387) | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (145,994,270) | (20,962,334) | 198,520,482 | 24,690,325 |
Cash, cash equivalents and restricted cash at beginning of the year | 233,853,654 | 33,577,471 | 35,333,172 | 10,642,847 |
Cash, cash equivalents and restricted cash at end of the year | 87,859,384 | 12,615,137 | 233,853,654 | 35,333,172 |
Parent Company | ||||
Net cash provided by (used in) operating activities | 3,911,561 | 561,635 | (535,017) | 0 |
Net cash used in investing activities | (155,900,936) | (22,384,765) | (201,554,446) | 0 |
Net cash provided by financing activities | 144,043,186 | 20,682,191 | 201,251,124 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 7,883,387 | 1,131,921 | 926,910 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (62,802) | (9,018) | 88,571 | 0 |
Cash, cash equivalents and restricted cash at beginning of the year | 88,571 | 12,718 | 0 | 0 |
Cash, cash equivalents and restricted cash at end of the year | ¥ 25,769 | $ 3,700 | ¥ 88,571 | ¥ 0 |