Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Document Information Line Items | |
Entity Registrant Name | U Power Limited |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001939780 |
Document Period End Date | Jun. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 001-41679 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | ||
Current assets: | |||||
Cash and cash equivalents | ¥ 107,830 | $ 14,870 | ¥ 4,881 | ||
Restricted cash | 1,027 | 142 | 1,027 | ||
Accounts receivable | 655 | 90 | 1,617 | ||
Inventories | 6,605 | 911 | 5,457 | ||
Advance to suppliers | 17,413 | 2,401 | 6,993 | ||
Other current assets | 37,744 | 5,205 | 33,917 | ||
Amount due from related parties | 175 | 24 | 120 | ||
Total current assets | 171,449 | 23,643 | 54,012 | ||
Non-current assets: | |||||
Property, plant and equipment, net | 14,046 | 1,937 | 16,282 | ||
Intangible assets, net | 236 | 33 | 286 | ||
Operating lease right-of-use assets, net | 16,819 | 2,319 | 19,250 | ||
Long-term investments | 111,791 | 15,417 | 111,811 | ||
Refundable deposit for investment | 74,877 | 10,326 | 80,183 | ||
Other non-current assets | 24 | 3 | 30 | ||
Total non-current assets | 217,793 | 30,035 | 227,842 | ||
Total assets | 389,242 | 53,678 | 281,854 | ||
Current liabilities: | |||||
Current portion of loan payables | 6,500 | 896 | 6,500 | ||
Accounts payable | 13,182 | 1,818 | 11,130 | ||
Accrued expenses and other liabilities | 30,430 | 4,196 | 33,735 | ||
Income tax payables | 3,932 | 542 | 2,580 | ||
Advances from customers | 4,913 | 678 | 3,258 | ||
Operating lease liabilities – current | 1,271 | 175 | 1,696 | ||
Amount due to related parties | 11,263 | 1,553 | 251 | ||
Total current liabilities | 71,491 | 9,858 | 59,150 | ||
Non-current liabilities: | |||||
Operating lease liabilities – non-current | 4,361 | 601 | 4,789 | ||
Non-current portion of long-term borrowing | 10,000 | [1] | 1,379 | [1] | 10,000 |
Non-current portion of loan payables | |||||
Total non-current liabilities | 14,361 | 1,980 | 14,789 | ||
Total liabilities | 85,852 | 11,838 | 73,939 | ||
Commitments and contingencies | 2,900 | 400 | 2,900 | ||
Shareholders’ equity: | |||||
Ordinary shares (US$0.0000001 par value; 500,000,000,000 shares authorized; 50,000,000 and 52,500,000 issued and outstanding as of December 31, 2022 and June 30, 2023, respectively) | |||||
Additional paid-in capital | 417,428 | 57,566 | 319,775 | ||
Accumulated deficit | (157,305) | (21,693) | (153,838) | ||
Total U POWER LIMITED’s shareholders’ equity | 260,123 | 35,873 | 165,937 | ||
Non-controlling interests | 40,367 | 5,567 | 39,078 | ||
Total equity | 300,490 | 41,440 | 205,015 | ||
Total liabilities and equity | ¥ 389,242 | $ 53,678 | ¥ 281,854 | ||
[1] Youxu Zibo’s commitment for long-term bank borrowings as of June 30, 2023 is discussed in Note 13 BANK BORROWINGS. |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) | Jun. 30, 2023 $ / shares shares | Dec. 31, 2022 ¥ / shares shares |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Dollars per share and Yuan Renminbi per share) | (per share) | $ 0.00 | ¥ 0.00 |
Ordinary shares, shares authorized | 500,000,000,000 | 500,000,000,000 |
Ordinary shares, shares issued | 52,500,000 | 50,000,000 |
Ordinary shares, shares outstanding | 52,500,000 | 50,000,000 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Comprehensive Loss ¥ in Thousands, $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2023 CNY (¥) ¥ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 CNY (¥) ¥ / shares shares | |||
Net revenues | |||||
Product sales | ¥ 2,634 | ||||
Sourcing services | 1,435 | 198 | 1,300 | ||
Battery-swapping services | 461 | 64 | 343 | ||
Total net revenues | 1,896 | 262 | 4,277 | ||
Cost of revenues | (597) | (82) | (2,748) | ||
Gross profit | 1,299 | 180 | 1,529 | ||
Operating expenses: | |||||
Sales and marketing expenses | (1,012) | (140) | (866) | ||
General and administrative expenses | (16,792) | (2,316) | (11,525) | ||
Research and development expenses | (1,941) | (268) | (2,810) | ||
Expected credit losses | (2,086) | (288) | |||
Total operating expenses | (21,831) | (3,012) | (15,201) | ||
Operating loss | (20,532) | (2,832) | (13,672) | ||
Interest income | 31 | 4 | 1,196 | ||
Interest expenses | (497) | (69) | (239) | ||
Other income | 16,145 | 2,226 | 10 | ||
Other expenses | (981) | (135) | (276) | ||
Loss before income taxes | (5,834) | (806) | (12,981) | ||
Income tax expenses | (1,344) | (185) | (5) | ||
Net loss | (7,178) | (991) | (12,986) | ||
Less: Net loss attributable to non-controlling interests | (3,711) | (512) | (2,029) | ||
Net loss attributable to the Company’s shareholders and total comprehensive loss | ¥ (3,467) | $ (479) | ¥ (10,957) | ||
Loss per share attributable to ordinary shareholders of the Company’s shareholders * | |||||
Basic (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.07) | $ (0.01) | ¥ (0.22) | [1] | |
Weighted average shares used in calculating basic and diluted loss per share * | |||||
Basic (in Shares) | [1] | 50,416,667 | 50,416,667 | 50,000,000 | |
[1] The shares and per share data are presented on a retroactive basis to reflect the reorganization (Note 1). |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Loss (Parentheticals) | 6 Months Ended | ||||
Jun. 30, 2023 ¥ / shares shares | Jun. 30, 2023 $ / shares shares | Jun. 30, 2022 ¥ / shares shares | |||
Income Statement [Abstract] | |||||
Diluted (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.22) | $ (0.03) | ¥ (0.22) | [1] | |
Diluted | [1] | 50,416,667 | 50,416,667 | 50,000,000 | |
[1] The shares and per share data are presented on a retroactive basis to reflect the reorganization (Note 1). |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders’ Equity ¥ in Thousands, $ in Thousands | Ordinary shares CNY (¥) shares | Ordinary shares USD ($) shares | Additional paid-in capital CNY (¥) | Additional paid-in capital USD ($) | Accumulated deficit CNY (¥) | Accumulated deficit USD ($) | Total U POWER LIMITED shareholders’ equity CNY (¥) | Total U POWER LIMITED shareholders’ equity USD ($) | Non- controlling interests CNY (¥) | Non- controlling interests USD ($) | CNY (¥) shares | USD ($) shares | |||
Balance (in Dollars) | ¥ 319,775 | ¥ (107,917) | ¥ 211,858 | ¥ 45,824 | ¥ 257,682 | ||||||||||
Balance at Dec. 31, 2021 | 319,775 | (107,917) | 211,858 | 45,824 | 257,682 | ||||||||||
Balance (in Shares) at Dec. 31, 2021 | shares | [1] | 50,000,000 | 50,000,000 | ||||||||||||
Consolidated net loss | (10,957) | (10,957) | (2,029) | (12,986) | |||||||||||
Capital contribution from issurance of ordinary shares | |||||||||||||||
Capital contribution from non-controlling shareholders | |||||||||||||||
Balance at Jun. 30, 2022 | 319,775 | (118,874) | 200,901 | 43,795 | 244,696 | ||||||||||
Balance (in Shares) at Jun. 30, 2022 | shares | [1] | 50,000,000 | 50,000,000 | ||||||||||||
Balance (in Dollars) | 319,775 | (118,874) | 200,901 | 43,795 | 244,696 | ||||||||||
Balance (in Dollars) | 319,775 | (153,838) | 165,937 | 39,078 | 205,015 | ||||||||||
Balance at Dec. 31, 2022 | 319,775 | (153,838) | 165,937 | 39,078 | ¥ 205,015 | ||||||||||
Balance (in Shares) at Dec. 31, 2022 | shares | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||
Consolidated net loss | (3,467) | (3,467) | (3,711) | ¥ (7,178) | $ (991) | ||||||||||
Capital contribution from issurance of ordinary shares | 97,653 | 97,653 | 97,653 | ||||||||||||
Capital contribution from issurance of ordinary shares (in Shares) | shares | 2,500,000 | 2,500,000 | |||||||||||||
Capital contribution from non-controlling shareholders | 5,000 | 5,000 | |||||||||||||
Balance at Jun. 30, 2023 | 417,428 | $ 57,566 | (157,305) | $ (21,693) | 260,123 | $ 35,873 | 40,367 | $ 5,567 | ¥ 300,490 | $ 41,440 | |||||
Balance (in Shares) at Jun. 30, 2023 | shares | 52,500,000 | [1] | 52,500,000 | [1] | 52,500,000 | 52,500,000 | |||||||||
Balance (in Dollars) | ¥ 417,428 | $ 57,566 | ¥ (157,305) | $ (21,693) | ¥ 260,123 | $ 35,873 | ¥ 40,367 | $ 5,567 | ¥ 300,490 | $ 41,440 | |||||
[1] The shares and per share data are presented on a retroactive basis to reflect the reorganization (Note 1). |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | |
Statement of Cash Flows [Abstract] | |||
Net loss | ¥ (7,178) | $ (991) | ¥ (12,986) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 1,320 | 182 | 850 |
Amortization of right-of-use assets | 2,762 | 381 | 6,521 |
Loss on termination of right-of-use assets | |||
Expected credit losses | 2,086 | 288 | |
Impairment of inventory | |||
Share of loss in equity method investee | |||
Changes in operating assets and liabilities: | |||
Accounts receivables | 933 | 129 | (2,913) |
Inventories | (1,149) | (158) | (1,513) |
Advance to suppliers | (10,853) | (1,497) | 36,101 |
Other current assets | (5,452) | (752) | (3,392) |
Amount due from related parties | (55) | (8) | 139 |
Other non-current assets | 45 | ||
Accounts payables | 2,053 | 283 | 2,220 |
Accrued expenses and other payables | (3,304) | (456) | 2,104 |
Income tax payables | 1,351 | 186 | |
Advance from customers | 1,655 | 228 | (34,291) |
Amount due to related parties | 11,012 | 1,519 | 1,021 |
Operating lease liabilities | (1,184) | (163) | (6,049) |
Net cash used in operating activities | (6,003) | (829) | (12,143) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property and equipment | 972 | 134 | (862) |
Purchases of intangible assets | (12) | ||
Loans provided to third parties | (914) | ||
Loans repayments from third parties | 5,307 | 732 | 1,653 |
Loans provided to related parties | (1) | ||
Loans repayments from related parties | |||
(Payment for) Return of long-term investments | 20 | 3 | (1,750) |
Net cash used in (provided by) investing activities | 6,299 | 869 | (1,886) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Capital contribution by non-controlling shareholders | 5,000 | 690 | 1 |
Loans received from a third party | 1,101 | ||
Loans received from long-term bank borrowing | |||
Proceeds from issuance of loan payable | |||
Capital contribution from issurance of ordinary shares | 97,653 | 13,467 | |
Repayments of long-term bank borrowing | |||
Repayments of loan payable | |||
Net cash provided by financing activities | 102,653 | 14,157 | 1,102 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 102,949 | 14,197 | (12,927) |
Cash and cash equivalents and restricted cash at beginning of year | 5,908 | 815 | 25,687 |
Cash and cash equivalents and restricted cash at end of period | 108,857 | 15,012 | 12,760 |
Supplemental disclosures of non-cash activities: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 331 | 46 | |
Derecognition of right-of use-assets | |||
Derecognition of lease liabilities |
Organization
Organization | 6 Months Ended |
Jun. 30, 2023 | |
Organization [Abstract] | |
ORGANIZATION | 1. ORGANIZATION (a) Nature of operations U POWER LIMITED (the “Company”) was incorporated in the Cayman Islands on June 17, 2021, under the Cayman Islands Companies Law as an exempted company with limited liability. Anhui Yousheng New Energy Technology Group Co., Ltd. (“AHYS”, formerly known as “Shanghai Yousheng New Energy Technology Group Co. Ltd.”) was incorporated in the People’s Republic of China (the “PRC” or “China”) on May 16, 2013. AHYS, together with its subsidiaries (collectively, the “Operating Entities”) are principally engaged in the provision of: 1) new energy vehicles development and sales; 2) battery swapping stations manufacturing and sales; 3) battery swapping services; and 4) sourcing services (collectively, “Principal Business”). (b) Reorganization In preparation of its initial public offering (“IPO”) in the United States, the following transactions were undertaken to reorganize the legal structure of the Operating Entities. The Company was incorporated in connection with a group reorganization (the “Reorganization”) of the Operating Entities. On June 30, 2021, and January 5, 2022, the Company incorporated two wholly-owned subsidiaries, Youcang Limited (“Youcang”) and U Robur Limited (“U Robur BVI”) in British Virgin Islands, respectively. On July 19, 2021, Youcang incorporated a wholly-owned subsidiary, Energy U Limited (“Energy U”) in Hong Kong. On January 24, 2022, U Robur BVI incorporated a wholly-owned subsidiary, U Robur Limited (“U Robur HK”). On January 27, 2021, Energy U incorporated a wholly-owned subsidiary, Shandong Yousheng New Energy Technology Development Co, Ltd. (“WFOE”) in the PRC. On July 8, 2022, the Company, through WFOE, entered into an equity purchase agreement with AHYS and its then shareholders, through which the Company has become the ultimate primary beneficiary of AHYS. As all the entities involved in the process of the Reorganization are under common ownership of AHYS’s shareholders before and after the Reorganization, the Reorganization is accounted for in a manner similar to a pooling of interests with the assets and liabilities of the parties to the Reorganization carried over at their historical amounts. Therefore, the accompanying consolidated financial statements were prepared as if the corporate structure of the Company had been in existence since the beginning of the periods presented. The Company and its subsidiaries hereinafter are collectively referred to as the “Group”. As of the date of this report, the details of the Company’s principal subsidiaries are as follows: Entity Date of Place of Percentage Principal activities Subsidiaries: Youcang Limited (“Youcang”) June 30, 2021 British Virgin Islands 100% Investment holding Energy U Limited (“Energy U”) July 19, 2021 Hong Kong 100% Investment holding Shandong Yousheng New Energy Technology Development Co, Ltd. (“WFOE”) (1) January 27, 2022 PRC 100% Provision of technical and consultation services Anhui Yousheng New Energy Co., Ltd (“AHYS”) (1) May 16, 2013 PRC 100% Dormant Company Youpin Automobile Service Group Co. Ltd. (“Youpin”) (1) July 18, 2013 PRC 53.1072% Provision of new energy vehicles sales, battery swapping stations sales, battery swapping services and sourcing services Shanghai Youqiao International Trade Co., Ltd. (“SH Youqiao”) (1) May 29, 2014 PRC 100% Dormant Company Shanghai Youchuangneng Digital Technology Co., Ltd. (“SY Digital Tech) (1) November 13, 2015 PRC 100% Provision of new energy vehicles sales, battery swapping stations sales, battery swapping services and sourcing services Youguan Financial Leasing Co., Ltd. (“Youguan Financial Leasing”) (1) February 27, 2017 PRC 100% Dormant Company Chengdu Youyipin Trading Co., Ltd. (“CD Youyipin”) (1) June 21, 2019 PRC 100% Dormant Company Zhejiang Youguan Automobile Service Co., Ltd. (“ZJ Youguan”) (1) May 21, 2020 PRC 80% Provision of sourcing services Youpin Automobile Service (Shandong) Co., Ltd. (“Youpin SD”) (1) June 30, 2020 PRC 86.96% Provision of new energy vehicles sales and sourcing services Chengdu Youyineng Automobile Service Co., Ltd. (“CD Youyineng”) (1) October 29, 2020 PRC 100% Provision of battery swapping stations manufacturing Shanghai Youteng Automobile Service Co., Ltd. (“SH Youteng”) (1) November 3, 2020 PRC 70% Dormant Company Liaoning Youguan New Energy Technology Co. Ltd. (“LY New Energy”) (1) November 8, 2019 PRC 100% Provision of new energy vehicles sales and sourcing services Zibo Youyipin Trading Co. Ltd. (“Zibo Youyipin”) (1) March 18, 2021 PRC 100% Dormant Company Shanghai Youxu New Energy Technology Co., Ltd. (“SH Youxu”) (1) March 22, 2021 PRC 100% Provision of battery swapping stations sales and battery swapping services Dalian Youshengchi Automobile Trading Service Co., Ltd. (“DL Youshengchi”) (1) March 23, 2021 PRC 100% Dormant Company Quanzhou Youyi Power Exchange Network Technology Co., Ltd. (“QZ Youyi”) (1) June 29, 2021 PRC 100% Provision of battery swapping services Youxu New Energy Technology (Zibo) Co., Ltd. (“Youxu Zibo”) (1) July 29, 2021 PRC 100% Provision of batter swapping stations manufacturing Youxu (Xiamen) Power Exchange Network Technology Co., Ltd. (“Youxu XM”) (1) August 10, 2021 PRC 100% Provision of battery swapping services Xinjiang Youxu Supply Chain Management Co., Ltd. (“XJ Youxu”) (1) October 12, 2021 PRC 100% Dormant Company Wuhu Youxu New Energy Technology Co., Ltd. (“WH Youxu”) (1) November 12, 2021 PRC 100% Provision of batter swapping stations manufacturing Beijing Youxu New Energy Technology Co., Ltd. (“BJ Youxu”) (1) December 21, 2021 PRC 100% Dormant Company Henan Youxu New Energy Technology Co., Ltd. (“HN Youxu”) (1) December 1, 2022 PRC 80% Dormant Company Youxu New Energy (Dalian) Co., Ltd. (“DL Youxu”) (1) June 8, 2022 PRC 100% Dormant Company Tai’an Youxu New Energy Technology Co., Ltd. (“TA Youxu”) (1) August 22, 2022 PRC 100% Dormant Company Shandong Youxu New Energy Co., Ltd. (“SD Youxu”) (1) August 26, 2022 PRC 100% Dormant Company Nanning Youguan Digital Technology Co., Ltd (“NN Youguan”) (1) July 12, 2022 PRC 100% Dormant Company Youxu New Energy Technology (Nanyang) Co., Ltd. (“NY Youxu”) (1) March 14, 2023 PRC 70% Provision of batter swapping stations manufacturing Liaoning Youxu New Energy Technology Co., Ltd. (“LN Youxu”) (1) March 9, 2023 PRC 51% Provision of batter swapping stations manufacturing (1) Collectively, the “PRC subsidiaries”. (c) Initial Public Offering In April 2023, the Company, in connection with its IPO in the United States, issued 2,416,667 ordinary shares with net proceeds from the IPO of approximately US$13,002. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). (b) Principles of consolidation The accompanying consolidated financial statements of the Group include the financial statements of the Company and its subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors (the “Board”); and to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. All significant transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. The non-controlling interests in consolidated subsidiaries are shown separately in the consolidated financial statements. (c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include the used in the recognition of right-of-use assets and lease liabilities, inventory write-down, expected credit losses, the useful lives of property and equipment and intangible assets, contingent (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries which incorporated in the Cayman Islands and British Virgin Islands is US Dollar (“US$”). The functional currency of the Company’s subsidiaries which incorporated in Hong Kong is Hong Kong Dollar (“HK$”). The functional currency of the Company’s subsidiaries which incorporated in PRC is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of PRC has been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the periods. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive loss in the consolidated statements of operations and comprehensive income (loss). There is nil Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. (e) Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss, change in equity and related consolidated statements of cash flows from RMB into US$ as of and for the six months ended June 30, 2023 are solely for the convenience of the reader and were calculated at the rate of US$1.00 to RMB7.2513, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2023. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2023 or at any other rate. (f) Non-controlling interest For certain subsidiaries, a non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. Consolidated net loss or income on the consolidated statements of operations includes the net loss or income attributable to non-controlling interests. Non-controlling interests are classified as a separate line item in the equity section of the Group’s consolidated balance sheets and have been separately disclosed in the Group’s consolidated statements of operations to distinguish the interests from that of the Company. (g) Cash and cash equivalents Cash and cash equivalents represent cash on hand, time deposits and highly-liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. (h) Restricted cash Restricted cash represents the cash that is not freely available to be spent nor re-invested to sustain future growth, which is legally or contractually restricted, or only to be used for a specified purpose. The restrictions can be permanent or temporary. Failure to use the asset according to agreed limitations will generate contractual or legal consequences. (i) Expected credit losses Accounts receivable, advance to suppliers and other current assets are recognized at original invoiced amount. The Group measures all expected credit losses at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Group reviews the accounts receivable, advance to suppliers and other current assets, and recognizes the expected credit losses based on many factors, including the customer’s payment history, its current credit-worthiness and current economic trends. Based on the result of the Group’s estimation of collectability, the Group recognized RMB9,801 and RMB 2,087 (j) Inventories Inventories, consisting of raw materials and products available for sale, are stated at the lower of cost or net realizable value. Cost of inventory are determined using the first-in-first-out method. The Group records inventory reserves for obsolete and slow-moving inventory. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. The Group recognized RMB180 and nil (k) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Property and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over their estimated useful lives on a straight-line basis. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Within the property, plant and equipment, the value for construction in process is included within the manufacturing equipment. Category Estimated useful life Leasehold improvements 1-3 years Manufacturing equipment 3 – 10 years Computer and electronic equipment 3 – 5 years Office equipment 2 – 4 years Motor vehicles 3 – 4 years (l) Intangible assets, net Intangible assets are carried at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight-line method over the estimated useful lives from 3 to 5 years. The estimated useful lives of amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. (m) Impairment of long-lived assets The Group evaluates its long-lived assets, including property, equipment and software and right-of-use assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amounts of the assets, the Group recognizes an impairment loss based on the excess of the carrying amounts of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. There was no impairment of long-lived assets recognized for the year ended December 31, 2022, and for the six months ended June 30, 2023, respectively. (n) Long-term investments The Group’s long-term investments mainly include equity investments in entities. Investments in entities in which the Group can exercise significant influence and holds an investment in voting common stock or in-substance common stock (or both) of the investee but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323, Investments - Equity Method and Joint Ventures (“ASC 323”) (o) Fair value of financial instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Group considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, accounts receivable, amounts due from related parties, deposits and other receivables, accounts payable, amounts due to related parties, other payables, short-term bank and other borrowings and loan payables. As of June 30, 2023, the carrying values of these financial instruments are approximated to their fair values. (p) Revenue recognition Under ASC 606, Revenue from Contracts with Customers, the Group recognizes revenue when a customer obtains control of promised goods or services and recognizes in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The Group recognized revenue according to the following five-step revenue recognition criteria based on ASC 606: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price; and (5) recognize revenue when or as the entity satisfies a performance obligation. The Group recognized revenue when or as the control of the goods or services is transferred to a customer. Depending on the terms of the contract and the laws that apply to the contract, control of the goods and services may be transferred over time or at a point in time. Control of the goods and services is transferred over time if the Group’s performance: (i) provides all of the benefits received and consumed simultaneously by the customer; (ii) creates and enhances an asset that the customer controls as the Group performs; or (iii) does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. Contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenue to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. If the standalone selling price is not directly observable, it is estimated using expected cost plus a margin or adjusted market assessment approach, depending on the availability of observable information. Assumptions and estimations have been made in estimating the relative selling price of each distinct performance obligation, and changes in judgments on these assumptions and estimates may impact the revenue recognition. When either party to a contract has performed, the Group presents the contract in the consolidated balance sheets as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A contract asset is the Group’s right to consideration in exchange for goods and services that the Group has transferred to a customer. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract liability when the payment is made, or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. The following table sets forth a breakdown of our revenues, in absolute amounts and percentages of total revenues for the six months ended June 30, 2022 and 2023, For the Six Months Ended June 30, 2022 2023 RMB % RMB US$ % (in thousands, except for percentages) Sourcing services 1,300 30.4 1,435 198 75.7 Product sales 2,634 61.6 - - - Battery-swapping services 343 8.0 461 64 24.3 Total revenues 4,277 100.0 1,896 262 100.0 Sourcing services The Group generates revenue from the vehicle sourcing business, where the Group is generally acting as an agent and its performance obligation is to purchase the specified vehicles for its customers. The Group charges customers a commission that is calculated based on the purchase price of each purchase order. Vehicle sourcing service revenues are recognized on a net basis at the point in time when the service of purchase of the specified vehicles for the Group’s customers is completed, i.e., the specified vehicle for the Group’s customers is delivered. Payments are typically received in advance and are accounted for as contract liabilities until delivery, at which point the receipt in advance from customers is offset with the prepayment to the supplier and the difference representing the commission is recognized as revenue. Product sales The Group generates revenues from sales of battery swapping stations. The Group identifies those who purchase battery swapping stations as its customers. The revenue for battery swapping station sales is recognized at a point in time when the control of the product is transferred to the customer. Battery swapping services The Group also generates revenues from providing battery swapping services to vehicle drivers and the station control system upgrading services to battery-swapping station owners. The Group identifies the vehicle drivers who need the services of battery swapping and the owners of battery swapping stations who require station control system upgrading services as its customers. The Group charges the battery swapping service fees from its customers based on vehicle miles traveled. However, as usually, the swapped battery will be immediately used after the payment by customers for driving and the power consumption of vehicles will be fast, the Group ignores the time interval between the timing of payment in advance by customers and the usage life of the swapped battery. The revenue generated from battery swapping services to vehicle drivers is recognized at a point in time when the Group received the payment from vehicle drivers. The revenue generated from the station control system upgrading service is recognized over time based on a straight-line method. (q) Cost of revenues Cost of sales of battery-swapping stations primarily includes semi-finished goods purchased from suppliers, labor costs and manufacturing including depreciation of assets associated with production. Costs of battery-swapping services mainly include the electric charge costs and the rental costs of batteries for battery swapping services. (r) Sales and marketing expenses Sales and marketing expenses consist primarily of (i) compensation to selling personnel, including the salaries, performance-based bonus, and other benefits; (ii) travel cost related to the sales and marketing function; and (iii) bid, advertising, marketing, and brand promotion expenses. (s) Research and development expenses Research and development expenses consist primarily of personnel-related costs directly associated with research and development organization. The Group’s research and development expenses are related to enhancing and developing UOTTA technology for its existing products and new product development. The Group expenses research and development costs as incurred. (t) General and administrative expenses General and administrative expenses consist primarily of salaries, bonuses and benefits for employees involved in general corporate functions, and those not specifically dedicated to research and development activities, such as depreciation and amortization of fixed assets which are not used in research and development activities, legal and other professional services fees, rental and other general corporate related expenses. (u) Employee benefits Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. (v) Government grants The Group’s PRC-based subsidiaries received government subsidies from certain local governments. The Group’s government subsidies consisted of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has provided for a specific purpose, such as product development and renewal of production facilities. Other subsidies are the subsidies that the local government has not specified its purpose for and are not tied to future trends or performance of the Group. Receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances. The Group recorded specific purpose subsidies as advances payable when received. For specific subsidies, upon government acceptance of the related project development or asset acquisition, the specific purpose subsidies are recognized to reduce related R&D expenses or the cost of asset acquisition. Other subsidies are recognized as other operating income upon receipt as further performance by the Group is not required. (w) Taxation Income Taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the assets and liabilities method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statement of income and comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not that some portion of, or all of the deferred tax assets will not be realized. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Group considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Group considers possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry. Value added tax Revenue represents the invoiced value of goods and services, net of value added tax (“VAT”). The VAT is based on gross sales price with VAT rates of 6% and 13%, depending on the type of products sold or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company’s subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing. Uncertain tax positions The Group applies the provisions of ASC topic 740 (“ASC 740”), Accounting for Income Taxes, to account for uncertainty in income taxes. ASC 740 prescribes a recognition threshold a tax position is required to meet before being recognized in the financial statements. The benefit of a tax position is recognized if a tax return position or future tax position is “more likely than not” to be sustained under examination based solely on the technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold is measured, using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The estimated liability for unrecognized tax benefits is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and or developments with respect to tax audits, and the expiration of the statute of limitations. Additionally, in future periods, changes in facts and circumstances, and new information may require the Group to adjust the recognition and measurement of estimates with regards to changes in individual tax position. Changes in recognition and measurement of estimates are recognized in the period in which the change occurs. The Group’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100 (US$15). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. Penalties and interests incurred related to underpayment of income tax are classified as income tax expense in the period incurred. (x) Comprehensive loss The Group has adopted FASB Accounting Standard Codification Topic 220 (“ASC 220”) “Comprehensive income”, which establishes standards for reporting and the presentation of comprehensive income (loss), its components and accumulated balances. There was no other comprehensive loss for the year ended December 31, 2022, and for the six months ended 2023, respectively. (y) Leases The Group accounts for lease under ASC Topic 842, Leases. The Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement. At the commencement date, the lease liability is recognized at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred. All right-of-use assets are reviewed for impairment annually. There was no impairment for right-of-use lease assets as of the year ended December 31, 2022 and the six months ended June 30, 2023, respectively. Operating lease assets are included within “right-of-use assets - operating lease”, and the corresponding operating lease liabilities are included within “operating lease liabilities” on the consolidated balance sheets as of December 31, 2022 and June 30, 2023, respectively. (z) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the consolidated financial statements. If the assessment indicates that a potential loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. The Group recognized RMB2,900 and nil (aa) Segment reporting ASC 280, Segment Reporting Based on the criteria established by ASC 280, the Company’s chief operating decision maker (“CODM”) has been identified as the Company’s Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. As a whole and hence, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. As the Company’s long-lived assets are substantially located in the PRC, no geographical segments are presented. (ab) Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, excluding entities eligible to be smaller reporting companies as defined by the SEC. For all other entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Group is an emerging-growth company and has elected to adopt the new standard as of the effective date applicable to nonissues. The Group adopted ASU 2016-13 since January 1, 2023, and recognized RMB2,087 (US$288) of expected credit losses for the six months ended June 30, 2023. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Income taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”) |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2023 | |
Liquidity [Abstract] | |
LIQUIDITY | 3. LIQUIDITY For the six months ended June 30, 2023, the Group reported a net loss of RMB7,178 (US$991), negative operating cash flows of RMB6,003 (US$829), net current assets of RMB97,058 (US$13,385), accumulated deficit of RMB157,305 (US$21,693), and the capital contribution from issurance of ordinary shares of RMB97,653 (US$13,467). In assessing its liquidity, management monitors and analyzes the Group’s cash and cash equivalents, its ability to generate sufficient revenue sources and ability to obtain additional financial support in the future, and its operating and capital expenditure commitments. The Group’s primary source of liquidity historically has been cash generated from its business operations, bank loans, equity contributions from its shareholders and borrowings, which have historically been sufficient to meet its working capital and capital expenditure requirements. As of the year ended December 31, 2022 and the six months ended June 30, 2023, the Group’s cash and cash equivalents and restricted cash were RMB5,908 (US$814.8) and RMB108,857 (US$15,012), respectively. The Group’s cash and cash equivalents primarily consist of cash on hand and highly liquid investments placed with banks, which are unrestricted to withdrawal and use and which have original maturities of three months or less. The Group believes that the substantial doubt of its ability to continue as going concern is alleviated based on proceeds received from its initial public offering. Meanwhile, the Group also believe its existing cash and cash equivalents, anticipated cash raised from financings, and anticipated cash flow from operations, together with the net proceeds from its initial public offering in April 2023, will be sufficient to meet its anticipated cash needs for the next 12 months from the date of this report. The exact amount of proceeds the Group used for its operations and expansion plans will depend on the amount of cash generated from its operations and any strategic decisions the Group may make that could alter its expansion plans and the amount of cash necessary to fund these plans. The Group may, however, decide to enhance its liquidity position or increase its cash reserve for future investments through additional capital and finance funding. The Group may need additional cash resources in the future if it experiences changes in business conditions or other developments, or if the Group find and wish to pursue opportunities for investments, acquisitions, capital expenditures or similar actions. If the Group determine that its cash requirements exceed the amount of cash and cash equivalents it has on hand at the time, the Group may seek to issue equity or debt securities or obtain credit facilities. The issuance and sale of additional equity would result in further dilution to its shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict its operations. The Group cannot assure that financing will be available in amounts or on terms acceptable to it, if at all. |
Concentration of Risks
Concentration of Risks | 6 Months Ended |
Jun. 30, 2023 | |
Concentration of Risks [Abstract] | |
CONCENTRATION OF RISKS | 4. CONCENTRATION OF RISKS (a) Political, social and economic risks The Group’s operations could be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective. (b) Interest rate risk The Group is exposed to interest rate risk on its interest-bearing assets and liabilities. As part of its asset and liability risk management, the Group reviews and takes appropriate steps to manage its interest rate exposure on its interest-bearing assets and liabilities. The Group has not been exposed to material risks due to changes in market interest rates, and has not used any derivative financial instruments to manage the interest risk exposure during the years presented. (c) Credit risk Financial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash. As of the year ended December 31, 2022 and the six months ended June 30, 2023, approximately were deposited with financial institutions located in the PRC, respectively, where there is a RMB deposit insurance limit for a legal entity’s aggregated balance at each bank. While the Group believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. The Group is also exposed to risk from its accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment. (d) Currency convertibility risk Substantially the Group’s operating activities are settled in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with supporting documents. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE | 5. ACCOUNTS RECEIVABLE Accounts receivable and the expected credit losses consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Accounts receivable 1,617 684 94 Less: expected credit losses - (29 ) (4 ) 1,617 655 90 As of the year ended December 31, 2022 and the six months ended June 30, 2023, all accounts receivable were due from third-party customers. There were nil |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2023 | |
Inventory [Abstract] | |
INVENTORY | 6. INVENTORY December 31 June 30 2022 2023 RMB RMB US$ Raw materials 1,793 1,782 246 Low value consumables 41 52 8 Finished goods 3,803 4,951 682 Less: inventory impairment (180 ) (180 ) (25 ) 5,457 6,605 911 The Group recognized RMB180 and nil |
Advance to Suppliers
Advance to Suppliers | 6 Months Ended |
Jun. 30, 2023 | |
Advance to Suppliers [Abstract] | |
ADVANCE TO SUPPLIERS | 7. ADVANCE TO SUPPLIERS Advance to suppliers consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Advance to suppliers 15,359 26,212 3,614 Less: expected credit losses (8,366 ) (8,799 ) (1,213 ) 6,993 17,413 2,401 As of the year ended December 31, 2022, the balance of advance to suppliers mainly represented the prepayments in relation to the development and purchase of battery swapping stations as well as developing UOTTA-powered EVs. As of the six months ended June 30, 2023, the balance of advance to suppliers mainly represented the prepayments in relation to the development of vehicle sourcing, general and administrative expenses, and purchase of battery swapping stations. An analysis of the expected credit losses was as follows: December 31 June 30 2022 2023 RMB RMB US$ Balance at beginning of the year - (8,366 ) (1,153 ) Additional allowance for credit losses charged to expense (8,366 ) (433 ) (60 ) Balance at the end of the year (8,366 ) (8,799 ) (1,213 ) |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2023 | |
Other Current Assets [Abstract] | |
OTHER CURRENT ASSETS | 8. OTHER CURRENT ASSETS Other current assets consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Tax recoverable 7,976 9,837 1,356 Loans to third parties 24,581 28,860 3,980 Deposits 1,218 1,138 157 Staff advances 336 434 60 Compensation receivable 842 100 14 Others 399 435 60 Less: expected credit losses (1,435 ) (3,060 ) (422 ) 33,917 37,744 5,205 An analysis of the expected credit losses was as follows: December 31 June 30 2022 2023 RMB RMB US$ Balance at beginning of the year - (1,435 ) (198 ) Additional allowance for credit losses charged to expense (1,435 ) (1,625 ) (224 ) Balance at the end of the year (1,435 ) (3,060 ) (422 ) |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 9. PROPERTY, PLANT AND EQUIPMENT, NET Property and equipment consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Leasehold improvements 754 754 104 Computer and network equipment 1,235 1,235 170 Manufacturing equipment 14,370 13,297 1,834 Office equipment 187 187 26 Motor vehicles 3,896 4,003 552 20,442 19,476 2,686 Less: Accumulated depreciation (4,160 ) (5,430 ) (749 ) 16,282 14,046 1,937 For the six months ended June 30, 2022 and 2023, the Group recorded depreciation expenses of RMB539 and RMB1,269 (US$175), respectively. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET The following table presents the Group’s intangible assets as of the respective balance sheet dates: Purchased Internal - use Total Total RMB RMB RMB US$ Net balance as of December 31, 2022 286 - 286 39 Additions - - - - Amortization expense (50 ) - (50 ) (6 ) Net balance as of June 30, 2023 236 - 236 33 The intangible assets are amortized using the straight-line method, which is the Group’s best estimate of how these assets will be economically consumed over their respective estimated useful lives of one to ten years. Amortization expenses for intangible assets were RMB312 and RMB50 (US$6) for the six months ended June 30, 2022 and 2023, respectively. No impairment charge was recorded for the six months ended June 30, 2022 and 2023, respectively. The annual estimated amortization expenses for the intangible assets for each of the next five years are as follows: RMB US$ 2023 (July – December) 35 5 2024 70 10 2025 70 10 2026 61 8 236 33 |
Long-Term Investments
Long-Term Investments | 6 Months Ended |
Jun. 30, 2023 | |
Long-Term Investments [Abstract] | |
LONG-TERM INVESTMENTS | 11. LONG-TERM INVESTMENTS The Group’s long-term investments consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Equity investments: Zibo Hengxin Investment Partnership (Limited Partnership) (the “Fund”) (i) 110,000 110,000 15,170 Huzhou Zheyou New Energy Sales Co., Ltd. (“Huzhou Zheyou”) (ii) 1,711 1,691 233 Chengdu Zhibo Premium Technology Co., Ltd. (“Chengdu Zhibo”) (iii) 100 100 14 Impairment on equity investments without readily determinable fair value - - - 111,811 111,791 15,417 (i) In December 2020, the Group entered into a partnership agreement with Zibo Hengxin Investment Partnership (Limited Partnership) and its participating shareholder, Guanmiao (Beijing) Investment Management Co., Ltd. (“Guanmiao”), whereby the Group agreed to purchased limited partnership interest in Zibo Hengxin Investment Fund Partnership (Limited Partnership) (the “Fund”) in the amount of RMB120,000, which entitles the Group an aggregate interest of approximately 99% in the Fund. In December 2021, the Fund decreased the total partnership capital to RMB111,200 and returned to the Group by RMB10,000 and the aggregate interest of the Group was subsequently diluted to 98.9%. For the six months ended June 30, 2023, the Group generated an investment income of RMB0.01 (US$0.0014) from the operating result of Zibo Hengxin. There was no unfunded commitment to the Fund as of June 30, 2023. The Fund’s investment strategy is primarily to invest in emerging companies of new energy automobile industry. The Fund is scheduled to be in existence until 2025, unless terminated sooner or extended in accordance with the amended and restated limited partnership agreement. (ii) In April 2022, the Group entered into an agreement to invest in Huzhou Zheyou New Energy Sales Co., Ltd. (“Huzhou Zheyou”), and injected capital of RMB1,750 in June 2022. The Group held an equity interest of 35% as of June 30, 2023. For the six months ended June 30, 2023, the Group generated an investment loss of RMB20 (US$3) from the operating result of Huzhou Zheyou. (iii) The Group entered into an agreement to invest in Chengdu Zhibo Premium Technology Co., Ltd. (“Chengdu Zhibo”), and injected capital of RMB100 in November 2022. The Group held an equity interest of 40% and has significant influence on Chengdu Zhibo. There was no investment income or loss recognized, as a result, no income or loss was generated in Chengdu Zhibo for the year ended December 31, 2022 and for the six months ended June 30, 2023. |
Refundable Deposit for Investme
Refundable Deposit for Investment | 6 Months Ended |
Jun. 30, 2023 | |
Refundable Deposit for Investment [Abstract] | |
REFUNDABLE DEPOSIT FOR INVESTMENT | 12. REFUNDABLE DEPOSIT FOR INVESTMENT The balance represented loans to Shanghai Lingneng Electricity Selling Co., Ltd. (“SH Lingneng”) for its operations pursuant to loan agreements entered into in 2019, bearing an interest rate of 3% per annum. Subsequently in August 2022, the Company entered into a term sheet, the result of which would be the investment into SH Lingneng’s interest equity (“Transaction”). Final terms and arrangements of this potential Transaction would be determined on Share Purchase Agreement (“SPA”), Shareholders’ Agreement (“SHA”), Memorandum of Association (“MA”) and other documents associated with the Transaction. The Company may terminate the investment agreement and abandon the transactions contemplated thereby for any reason or for no reason in its sole and absolute discretion prior to December 31, 2023, with no further obligations on its part. |
Bank Borrowings
Bank Borrowings | 6 Months Ended |
Jun. 30, 2023 | |
Bank Borrowings [Abstract] | |
BANK BORROWINGS | 13. BANK BORROWINGS Bank borrowings were as follows as of the respective balance sheet dates: December 31 June 30 2022 2023 RMB RMB US$ Long-term bank borrowing, current portion - - - Long-term bank borrowing, non-current portion 10,000 10,000 1,379 10,000 10,000 1,379 On December 13, 2021, Youxu Zibo entered into a three-year bank facility agreement with Bank of Qishang, a commercial bank in China, pursuant to which Youxu Zibo was entitled to borrow a loan of RMB10,000 with an annual interest rate of 6.87% for working capital needs. Youxu Zibo drew down the amount in full. A manufacturing facility of Youxu Zibo was pledged as collateral |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Accrued Expenses and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 14. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Payroll and welfare payables 1,846 2,369 327 Loan from a third party 13,104 19,965 2,753 Interest payables 639 881 39 Customer deposit 301 282 121 Payables for purchase of property and equipment 964 1,051 145 Accrued expenses 10,928 3,170 437 Deferred consideration in relation to investment 5,300 2,300 317 Others 653 412 57 33,735 30,430 4,196 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | 15. LEASES The Company leases buildings, office facilities, land use rights and batteries in PRC. The Company does not have any finance lease for the year ended December 31, 2022, and for the six months ended June 30, 2023, respectively. Operating leases result in the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. ROU assets represent the Company’s right to use the leased asset for the lease term, and lease liabilities represent the obligation to make lease payments. The operating lease expenses were charged to cost of sales, research and development expenses and general and administrative expenses. A summary of supplemental information related to operating leases as of the year ended December 31, 2022 and the six months ended June 30, 2023 was as follows: December 31 June 30 2022 2023 RMB RMB US$ Operating lease right-of-use assets, net 19,250 16,819 2,319 Operating lease liabilities, current 1,696 1,271 175 Operating lease liabilities, non-current 4,789 4,361 601 Weighted average remaining lease terms 3.79 years 2.83 years Weighted average discount rate 4.41 % 4.25 % Cash flow information related to leases consists of the following: December 31 June 30 2022 2023 RMB RMB US$ Right-of-use assets obtained in exchange for new operating lease liabilities 6,603 331 46 Derecognition of right-of use-assets 7,408 - - Derecognition of lease liabilities 5,658 - - Amortization of right-of-use assets: As of RMB FY2023 960 FY2024 1,063 FY2025 1,075 FY2026 1,087 FY2027 1,087 FY2028 620 FY2029 290 FY2030 147 Total future lease payment 6,329 less: imputed interest 697 Represent value of future lease payments (1) 5,632 (1) Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB1,271 (US$175) and RMB4,361 (US$601) as of June 30, 2023. |
Loan Payables
Loan Payables | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payables [Abstract] | |
LOAN PAYABLES | 16. LOAN PAYABLES Loan payables were as follows as of the respective balance sheet dates: December 31 June 30 2022 2023 RMB RMB US$ Loan payables, current portion 6,500 6,500 896 Loan payables, non-current portion - - - 6,500 6,500 896 On September 17, 2020, Zhejiang Youguan Automobile Service Co., Ltd. (“ZJ Youguan”) entered into a loan agreement with WuYi Transportation Construction Investment Group Company Limited (“WuYi Transportation Construction”), pursuant to which ZJ Youguan was entitled to borrow a loan of RMB20,000 with a weighted average interest rate of 7.5%. ZJ Youguan drew down the amount in full. On July 1, 2021, ZJ Youguan entered into a supplementary agreement with WuYi Transportation Construction, pursuant to which ZJ Youguan shall fully repay this loan by the end of 2021. ZJ Youguan repaid RMB10,000 on July 27, 2021, RMB2,000 on October 29, 2021, RMB1,000 on December 29, 2021 and RMB500 on July 29, 2022, respectively. As of June 30, 2023, the outstanding balance of this loan is RMB6,500, which is overdue. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS Major related parties that transacted with the Group and their respective relationship to the Group listed as below: Names of the related parties Relationship with the Group Hangzhou Youyue Travel Technology Co., Ltd. (“Hangzhou Youyue”) An affiliate of Bingyi Zhao Jia Li Controlling shareholder, Director and CEO of U Power Limited Bingyi Zhao Director and Chief Financial Officer of U Power Limited Youche Jingpin E-commerce (Shanghai) Co., Ltd. (“Youche Jingpin”) An affiliate of Jia Li Shanghai Youcang Business Consulting Partnership (Limited Partnership) (“Shanghai Youcang”) An affiliate of Jia Li Nanmu (Shanghai) Finance Leasing Co., Ltd. (“Nanmu”) An affiliate of Jia Li (a) Amounts due from related parties December 31 June 30 2022 2023 RMB RMB US$ Youche Jingpi 20 20 3 Shanghai Youcang 100 155 21 120 175 24 (b) Amounts due to related parties December 31 June 30 2022 2023 RMB RMB US$ Jia Li 228 2,701 372 Bingyi Zhao 23 22 3 Hangzhou Youyue - 6 1 Nanmu - 8,534 1,177 251 11,263 1,553 |
Employee Benefit Expenses
Employee Benefit Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Employee Benefit Expenses [Abstract] | |
EMPLOYEE BENEFIT EXPENSES | 18. EMPLOYEE BENEFIT EXPENSES All eligible employees of the Group are entitled to staff welfare benefits including medical care, welfare subsidies, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan and accrues these benefits based on certain percentages of the qualified employees’ salaries. The Group recorded employee benefit expenses of RMB2,168 and RMB1,892 (US$261) for the six months ended June 30, 2022 and 2023, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 19. INCOME TAXES Cayman Islands The Company is incorporated in the Cayman Islands and conducts its primary business operations through the subsidiaries in the PRC and Hong Kong. Under the current laws of the Cayman Islands, the Cayman Islands levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and the Company is therefore not subject to tax on income or capital gains arising in Cayman Islands. British Virgin Islands Subsidiaries in British Virgin Islands are not subject to tax on income or capital gains under the current laws of the British Virgin Islands. Additionally, upon payments of dividends by the Company to its shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong Subsidiaries in Hong Kong are subject to a two-tiered income tax rate for taxable income earned in Hong Kong. The first 2,000 Hong Kong dollars of profits earned by a company is subject to be taxed at an income tax rate of 8.25%, while the remaining profits will continue to be taxed at the existing tax rate of 16.5%. No provision for Hong Kong profits tax has been made in the consolidated financial statements as it has no assessable profit for the six months ended June 30, 2022 and 2023, respectively. PRC The Company’s PRC subsidiaries are incorporated in the PRC and subject to the statutory rate of 25% on the taxable income in accordance with the Enterprise Income Tax Law (the “EIT Law”), which was effective since January 1, 2008, except for certain entities eligible for preferential tax rates. Dividends, interests, rent or royalties payable by the Company’s PRC subsidiaries, to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax. The EIT Law also provides that enterprises established under the laws of foreign countries or regions and whose “place of effective management” is located within the PRC are considered PRC tax resident enterprises and subject to PRC income tax at the rate of 25% on worldwide income. The definition of “place of effective management” refers to an establishment that exercises, in substance, overall management and control over the production and business, personnel, accounting, properties, etc. of an enterprise. As of June 30, 2023, the administrative practice associated with interpreting and applying the concept of “place of effective management” is unclear. If the Company is deemed as a PRC tax resident, it will be subject to 25% PRC enterprise income tax under the EIT Law on its worldwide income, meanwhile the dividend it receives from another PRC tax resident company will be exempted from 25% PRC income tax. The Company will continue to monitor changes in the interpretation or guidance of this law. Loss before income taxes consisted of: June 30 June 30 2022 2023 RMB RMB US$ Non-PRC - - - PRC (12,981 ) (5,834 ) (806 ) (12,981 ) (5,834 ) (806 ) The following table presents the composition of income tax expenses for the six months ended June 30, 2022 and 2023: June 30 June 30 2022 2023 RMB RMB US$ Current income tax expense 5 1,344 185 Deferred income tax expense - - - 5 1,344 185 Uncertain tax positions The Group 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 the year ended December 31, 2022 and the six months ended June 30, 2023, the Group did not have any significant unrecognized uncertain tax positions. The Group did not accrue any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line of its consolidated statements of operations for the year ended December 31, 2022 and for the six months ended June 30, 2023, respectively. |
Restricted Net Assets
Restricted Net Assets | 6 Months Ended |
Jun. 30, 2023 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | 20. RESTRICTED NET ASSETS Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. In accordance with the Regulations on Enterprises with Foreign Investment of China, a foreign invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, enterprise expansion fund, and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts, which is included in retained earnings accounts in equity section of the consolidated balance sheets. A wholly foreign owned invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve reaches 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. If any PRC subsidiary incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other payments to the Group. Any limitation on the ability of the PRC subsidiaries to distribute dividends or other payments to their respective shareholders could materially and adversely limit the ability to grow, make investments or acquisitions that could be beneficial to pay dividends. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide a statutory common reserve of at least 10% of its annual after-tax profit until such reserve reaches 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. The Group’s provision for the statutory common reserve is in compliance with the aforementioned requirement of the Company Law. A domestic enterprise is also required to provide for discretionary surplus reserve, at the discretion of the board of directors, from the profits determined in accordance with the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. For the six months ended June 30, 2022 and 2023, the PRC subsidiaries did not have after-tax profit, and therefore, no statutory reserves were allocated. Because the Group’s entities in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s entities in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital and additional paid-in capital of the Group’s entities in the PRC. The aggregate amount of paid-in capital and additional paid-in capital, which is the amount of net assets of the Group’s entities in the PRC (mainland) not available for distribution, were RMB383,980 and RMB383,823 (US$52,932) as of the year ended December 31, 2022 and six months ended June 30, 2023, respectively. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | 21. LOSS PER SHARE Basic and diluted earnings per share for the years presented were calculated as follows: June 30 June 30 2022 2023 RMB RMB US$ Numerator: Net loss (12,986 ) (7,178 ) (991 ) Less: net loss attributable to non-controlling interest (2,029 ) (3,711 ) (512 ) Net loss attributable to the Company’s ordinary shareholders (10,957 ) (3,467 ) (479 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic and diluted earnings per share 50,000,000 50,416,667 50,416,667 Basic and diluted earnings per share: (0.22 ) (0.07 ) (0.01 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 22. COMMITMENTS AND CONTINGENCIES Commitments The assets pledged as collaterals The following table sets forth the Group’s contractual obligations as of June 30, 2023: Payment due by period Total Less than 1-3 years 3-5 years More than RMB US$ Long-term bank borrowings (i) 10,000 1,379 - 10,000 - - Operating lease liabilities (ii) 5,632 776 1,271 1,837 1,967 557 Loan payable to WuYi Transportation Construction (iii) 6,500 896 6,500 - - - Payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) (iv) 1,281 177 1,281 - - - Total 23,413 3,228 9,477 11,785 1,991 1,013 (i) Youxu Zibo’s commitment for long-term bank borrowings as of June 30, 2023 is discussed in Note 13 BANK BORROWINGS. (ii) Our commitment for minimum lease payments under the remaining operating leases as of June 30, 2023, 2022 is discussed in Note 15 LEASES. (iii) ZJ Youguan’s commitment for loan payable to WuYi Transportation Construction as of June 30, 2023 is discussed in Note 16 LOAN PAYABLES and Note 23 SUBSEQUENT EVENTS. (iv) AHYS’s commitment for the payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) as of June 30, 2023 is discussed in Note 23 SUBSEQUENT EVENTS. Other than as shown above, the Group did not have any significant capital and other commitments, long-term obligations or guarantees as of June 30, 2023. Contingencies The Group is subject to legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Group does not anticipate that the final outcome arising out of any such matter will have a material adverse effect on the Group’s consolidated business, financial position, cash flows or results of operations taken as a whole except the following: A contingency provision of RMB2,900 (US$400) was accounted for. Youpin Automobile Service Group Co. Ltd. (“Youpin”) was a party of a lawsuit commenced by Anhui Juhu Menchuang Technologies Company Limited (“Anhui Juhu”), in which Youpin was requested to pay the rent for an office of RMB2,000 and a penalty for breach of contract of RMB900, resulting from the early termination of the lease contract. Youpin lost the first trial on April 20, 2023. Since relevant economic loss is probable and reliably measured, relevant cash out flow of RMB2,900 (US$400) was provided for the year ended December 31, 2022. Guarantees From August 2021 to November 2021, Youguan Financial Leasing provided a total of RMB6,257 (US$863) guarantee to its five customers who entered into two five-year guarantees, one three-year guarantee and two four-year guarantees. As of the date of this report, all these loans are under normal repayment by these five customers. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 23. SUBSEQUENT EVENTS The Group evaluated all events that occurred up to the date of this report and determined that no events that would have required adjustment or disclosure in the consolidated financial statements except the following: In September and December 2022, Youpin and AHYS respectively were implicated as outsiders in a lawsuit in relation to a private equity institution. However, Youpin and AHYS have actually terminated the investment agreement with the private equity institution and partially refunded the investment funds. Youpin and AHYS have filed a notice of appeal in 2023. To the date of this report, this case is in the appeal review and filing stage. AHYS was sued by Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) (“Chenhui”) in relation to the equity transfer transaction between AHYS and Chenhui. On May 30, 2023, AHYS and Chenhui entered into a settlement agreement. AHYS agreed to pay attorney fees, equity transfer fee and arbitration fee with a total of RMB1,281 (US$177) before December 31, 2023. ZJ Youguan was a party of a lawsuit commenced by WuYi Transportation Construction, for its failure to repay the loan payables discussed within Note 16. LOAN PAYABLES. ZJ Youguan lost the first trial on March 20, 2023. Based on the agreement by both parties on June 13, 2023, ZJ Youguan reached a settlement with WuYi Transportation Construction that remaining RMB6,500 (US$896) loan payables shall be repaid before December 15, 2023. Youpin SD sued one of its vehicle sourcing service providers Inner Mongolia Zhonglutong Trading Co., Ltd. for failing to deliver vehicles as scheduled to Youpin SD’s customer. Youpin SD won the case on September 8, 2022. On March 23, 2023, both parties entered into a settlement agreement, and the supplier agreed to return the deposit and liquidated damages with a total of RMB2,746 (US$379). Youpin was sued by Beijing Hengyuan Xinye Information Technology Co., Ltd. (“Hengyuan Xinye”) who is the creditor of Nanmu (Shanghai) Finance Leasing Co., Ltd., a business partner of Youpin, for providing joint and several liability guarantee for Nanmu (Shanghai) Financial Leasing Co., Ltd by Youpin. On December 30, 2021, Youpin won the first trial. As of the date of this report, the case is currently on appeal. On September 11, 2023, Youpin sued Hainan Gaozhan New Energy Automobile Co., Ltd. for a refund of deposit for an automobile exhibition amounting to RMB170 (US$23.4) and a penalty of amounting to RMB200 (US$27.6). As of the date of this report, the case is currently waiting for the court session. On July 14, 2023, SH Youxu entered into a one-year banking facility agreement with Shanghai Pudong Development Bank Co., Ltd., a commercial bank in China, pursuant to which SH Youxu was entitled to borrow a loan of RMB3.0 million (US$0.4 million), with an annual interest rate of 3.70% for working capital needs. SH Youxu withdrew the amount in full. On August 7, 2023, Youpin SD entered into a one-year banking facility agreement with China Construction Bank, a commercial bank in China, pursuant to which Youpin SD was entitled to borrow a loan of RMB2.0 million (US$0.3 million), with an annual interest rate of 3.95%. On July 28, 2023, Youpin SD entered into two-year loan agreements with Huaneng Guicheng Trust Co., Ltd. and Shenzhen Qianhai Webank Co., Ltd., respectively, pursuant to which Youpin SD was entitled to borrow a loan of RMB0.5 million (US$0.07 million), respectively, with an annual interest rate of 15.12% and 9.9% respectively, for working capital needs. Youpin SD withdrew above amount in full. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). |
Principles of consolidation | (b) Principles of consolidation The accompanying consolidated financial statements of the Group include the financial statements of the Company and its subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; has the power to appoint or remove the majority of the members of the board of directors (the “Board”); and to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. All significant transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. The non-controlling interests in consolidated subsidiaries are shown separately in the consolidated financial statements. |
Use of estimates | (c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include the used in the recognition of right-of-use assets and lease liabilities, inventory write-down, expected credit losses, the useful lives of property and equipment and intangible assets, contingent |
Functional currency and foreign currency translation | (d) Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its overseas subsidiaries which incorporated in the Cayman Islands and British Virgin Islands is US Dollar (“US$”). The functional currency of the Company’s subsidiaries which incorporated in Hong Kong is Hong Kong Dollar (“HK$”). The functional currency of the Company’s subsidiaries which incorporated in PRC is RMB. In the consolidated financial statements, the financial information of the Company and other entities located outside of PRC has been translated into RMB. Assets and liabilities are translated at the exchange rates on the balance sheet date, equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the periods. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive loss in the consolidated statements of operations and comprehensive income (loss). There is nil Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing at the balance sheet date. |
Convenience translation | (e) Convenience translation The Group’s business is primarily conducted in China and all of the revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets, consolidated statements of comprehensive loss, change in equity and related consolidated statements of cash flows from RMB into US$ as of and for the six months ended June 30, 2023 are solely for the convenience of the reader and were calculated at the rate of US$1.00 to RMB7.2513, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2023. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on June 30, 2023 or at any other rate. |
Non-controlling interest | (f) Non-controlling interest For certain subsidiaries, a non-controlling interest is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group. Consolidated net loss or income on the consolidated statements of operations includes the net loss or income attributable to non-controlling interests. Non-controlling interests are classified as a separate line item in the equity section of the Group’s consolidated balance sheets and have been separately disclosed in the Group’s consolidated statements of operations to distinguish the interests from that of the Company. |
Cash and cash equivalents | (g) Cash and cash equivalents Cash and cash equivalents represent cash on hand, time deposits and highly-liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. |
Restricted cash | (h) Restricted cash Restricted cash represents the cash that is not freely available to be spent nor re-invested to sustain future growth, which is legally or contractually restricted, or only to be used for a specified purpose. The restrictions can be permanent or temporary. Failure to use the asset according to agreed limitations will generate contractual or legal consequences. |
Expected credit losses | (i) Expected credit losses Accounts receivable, advance to suppliers and other current assets are recognized at original invoiced amount. The Group measures all expected credit losses at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Group reviews the accounts receivable, advance to suppliers and other current assets, and recognizes the expected credit losses based on many factors, including the customer’s payment history, its current credit-worthiness and current economic trends. Based on the result of the Group’s estimation of collectability, the Group recognized RMB9,801 and RMB 2,087 |
Inventories | (j) Inventories Inventories, consisting of raw materials and products available for sale, are stated at the lower of cost or net realizable value. Cost of inventory are determined using the first-in-first-out method. The Group records inventory reserves for obsolete and slow-moving inventory. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. The Group recognized RMB180 and nil |
Property, plant and equipment, net | (k) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. Property and equipment are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over their estimated useful lives on a straight-line basis. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Within the property, plant and equipment, the value for construction in process is included within the manufacturing equipment. Category Estimated useful life Leasehold improvements 1-3 years Manufacturing equipment 3 – 10 years Computer and electronic equipment 3 – 5 years Office equipment 2 – 4 years Motor vehicles 3 – 4 years |
Intangible assets, net | (l) Intangible assets, net Intangible assets are carried at cost less accumulated amortization and impairment, if any. Intangible assets are amortized using the straight-line method over the estimated useful lives from 3 to 5 years. The estimated useful lives of amortized intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. |
Impairment of long-lived assets | (m) Impairment of long-lived assets The Group evaluates its long-lived assets, including property, equipment and software and right-of-use assets with finite lives, for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Group evaluates the recoverability of long-lived assets by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amounts of the assets, the Group recognizes an impairment loss based on the excess of the carrying amounts of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. There was no impairment of long-lived assets recognized for the year ended December 31, 2022, and for the six months ended June 30, 2023, respectively. |
Long-term investments | (n) Long-term investments The Group’s long-term investments mainly include equity investments in entities. Investments in entities in which the Group can exercise significant influence and holds an investment in voting common stock or in-substance common stock (or both) of the investee but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323, Investments - Equity Method and Joint Ventures (“ASC 323”) |
Fair value of financial instruments | (o) Fair value of financial instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Group considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. Financial assets and liabilities of the Group primarily consist of cash and cash equivalents, accounts receivable, amounts due from related parties, deposits and other receivables, accounts payable, amounts due to related parties, other payables, short-term bank and other borrowings and loan payables. As of June 30, 2023, the carrying values of these financial instruments are approximated to their fair values. |
Revenue recognition | (p) Revenue recognition Under ASC 606, Revenue from Contracts with Customers, the Group recognizes revenue when a customer obtains control of promised goods or services and recognizes in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The Group recognized revenue according to the following five-step revenue recognition criteria based on ASC 606: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price; and (5) recognize revenue when or as the entity satisfies a performance obligation. The Group recognized revenue when or as the control of the goods or services is transferred to a customer. Depending on the terms of the contract and the laws that apply to the contract, control of the goods and services may be transferred over time or at a point in time. Control of the goods and services is transferred over time if the Group’s performance: (i) provides all of the benefits received and consumed simultaneously by the customer; (ii) creates and enhances an asset that the customer controls as the Group performs; or (iii) does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. Contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenue to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices based on the prices charged to customers. If the standalone selling price is not directly observable, it is estimated using expected cost plus a margin or adjusted market assessment approach, depending on the availability of observable information. Assumptions and estimations have been made in estimating the relative selling price of each distinct performance obligation, and changes in judgments on these assumptions and estimates may impact the revenue recognition. When either party to a contract has performed, the Group presents the contract in the consolidated balance sheets as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A contract asset is the Group’s right to consideration in exchange for goods and services that the Group has transferred to a customer. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract liability when the payment is made, or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. The following table sets forth a breakdown of our revenues, in absolute amounts and percentages of total revenues for the six months ended June 30, 2022 and 2023, For the Six Months Ended June 30, 2022 2023 RMB % RMB US$ % (in thousands, except for percentages) Sourcing services 1,300 30.4 1,435 198 75.7 Product sales 2,634 61.6 - - - Battery-swapping services 343 8.0 461 64 24.3 Total revenues 4,277 100.0 1,896 262 100.0 Sourcing services The Group generates revenue from the vehicle sourcing business, where the Group is generally acting as an agent and its performance obligation is to purchase the specified vehicles for its customers. The Group charges customers a commission that is calculated based on the purchase price of each purchase order. Vehicle sourcing service revenues are recognized on a net basis at the point in time when the service of purchase of the specified vehicles for the Group’s customers is completed, i.e., the specified vehicle for the Group’s customers is delivered. Payments are typically received in advance and are accounted for as contract liabilities until delivery, at which point the receipt in advance from customers is offset with the prepayment to the supplier and the difference representing the commission is recognized as revenue. Product sales The Group generates revenues from sales of battery swapping stations. The Group identifies those who purchase battery swapping stations as its customers. The revenue for battery swapping station sales is recognized at a point in time when the control of the product is transferred to the customer. Battery swapping services The Group also generates revenues from providing battery swapping services to vehicle drivers and the station control system upgrading services to battery-swapping station owners. The Group identifies the vehicle drivers who need the services of battery swapping and the owners of battery swapping stations who require station control system upgrading services as its customers. The Group charges the battery swapping service fees from its customers based on vehicle miles traveled. However, as usually, the swapped battery will be immediately used after the payment by customers for driving and the power consumption of vehicles will be fast, the Group ignores the time interval between the timing of payment in advance by customers and the usage life of the swapped battery. The revenue generated from battery swapping services to vehicle drivers is recognized at a point in time when the Group received the payment from vehicle drivers. The revenue generated from the station control system upgrading service is recognized over time based on a straight-line method. |
Cost of revenues | (q) Cost of revenues Cost of sales of battery-swapping stations primarily includes semi-finished goods purchased from suppliers, labor costs and manufacturing including depreciation of assets associated with production. Costs of battery-swapping services mainly include the electric charge costs and the rental costs of batteries for battery swapping services. |
Sales and marketing expenses | (r) Sales and marketing expenses Sales and marketing expenses consist primarily of (i) compensation to selling personnel, including the salaries, performance-based bonus, and other benefits; (ii) travel cost related to the sales and marketing function; and (iii) bid, advertising, marketing, and brand promotion expenses. |
Research and development expenses | (s) Research and development expenses Research and development expenses consist primarily of personnel-related costs directly associated with research and development organization. The Group’s research and development expenses are related to enhancing and developing UOTTA technology for its existing products and new product development. The Group expenses research and development costs as incurred. |
General and administrative expenses | (t) General and administrative expenses General and administrative expenses consist primarily of salaries, bonuses and benefits for employees involved in general corporate functions, and those not specifically dedicated to research and development activities, such as depreciation and amortization of fixed assets which are not used in research and development activities, legal and other professional services fees, rental and other general corporate related expenses. |
Employee benefits | (u) Employee benefits Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. |
Government grants | (v) Government grants The Group’s PRC-based subsidiaries received government subsidies from certain local governments. The Group’s government subsidies consisted of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has provided for a specific purpose, such as product development and renewal of production facilities. Other subsidies are the subsidies that the local government has not specified its purpose for and are not tied to future trends or performance of the Group. Receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances. The Group recorded specific purpose subsidies as advances payable when received. For specific subsidies, upon government acceptance of the related project development or asset acquisition, the specific purpose subsidies are recognized to reduce related R&D expenses or the cost of asset acquisition. Other subsidies are recognized as other operating income upon receipt as further performance by the Group is not required. |
Taxation | (w) Taxation Income Taxes Current income taxes are provided on the basis of income/(loss) for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the assets and liabilities method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statement of income and comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not that some portion of, or all of the deferred tax assets will not be realized. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Group considers positive and negative evidence when determining whether a portion or all of its deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, its experience with tax attributes expiring unused, and its tax planning strategies. The ultimate realization of deferred tax assets is dependent upon its ability to generate sufficient future taxable income within the carry-forward periods provided for in the tax law and during the periods in which the temporary differences become deductible. When assessing the realization of deferred tax assets, the Group considers possible sources of taxable income including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry-forwards, (iii) future taxable income arising from implementing tax planning strategies, and (iv) specific known trend of profits expected to be reflected within the industry. Value added tax Revenue represents the invoiced value of goods and services, net of value added tax (“VAT”). The VAT is based on gross sales price with VAT rates of 6% and 13%, depending on the type of products sold or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company’s subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing. Uncertain tax positions The Group applies the provisions of ASC topic 740 (“ASC 740”), Accounting for Income Taxes, to account for uncertainty in income taxes. ASC 740 prescribes a recognition threshold a tax position is required to meet before being recognized in the financial statements. The benefit of a tax position is recognized if a tax return position or future tax position is “more likely than not” to be sustained under examination based solely on the technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold is measured, using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The estimated liability for unrecognized tax benefits is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and or developments with respect to tax audits, and the expiration of the statute of limitations. Additionally, in future periods, changes in facts and circumstances, and new information may require the Group to adjust the recognition and measurement of estimates with regards to changes in individual tax position. Changes in recognition and measurement of estimates are recognized in the period in which the change occurs. The Group’s operating subsidiaries in PRC are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100 (US$15). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. Penalties and interests incurred related to underpayment of income tax are classified as income tax expense in the period incurred. |
Comprehensive loss | (x) Comprehensive loss The Group has adopted FASB Accounting Standard Codification Topic 220 (“ASC 220”) “Comprehensive income”, which establishes standards for reporting and the presentation of comprehensive income (loss), its components and accumulated balances. There was no other comprehensive loss for the year ended December 31, 2022, and for the six months ended 2023, respectively. |
Leases | (y) Leases The Group accounts for lease under ASC Topic 842, Leases. The Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement. At the commencement date, the lease liability is recognized at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate for the same term as the underlying lease. The right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred. All right-of-use assets are reviewed for impairment annually. There was no impairment for right-of-use lease assets as of the year ended December 31, 2022 and the six months ended June 30, 2023, respectively. Operating lease assets are included within “right-of-use assets - operating lease”, and the corresponding operating lease liabilities are included within “operating lease liabilities” on the consolidated balance sheets as of December 31, 2022 and June 30, 2023, respectively. (z) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the consolidated financial statements. If the assessment indicates that a potential loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. The Group recognized RMB2,900 and nil |
Commitments and contingencies | (z) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment of a contingency indicates that it is probable that a loss is incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the consolidated financial statements. If the assessment indicates that a potential loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. |
Segment reporting | (aa) Segment reporting ASC 280, Segment Reporting Based on the criteria established by ASC 280, the Company’s chief operating decision maker (“CODM”) has been identified as the Company’s Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. As a whole and hence, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. As the Company’s long-lived assets are substantially located in the PRC, no geographical segments are presented. |
Recent accounting pronouncements | (ab) Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, excluding entities eligible to be smaller reporting companies as defined by the SEC. For all other entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Group is an emerging-growth company and has elected to adopt the new standard as of the effective date applicable to nonissues. The Group adopted ASU 2016-13 since January 1, 2023, and recognized RMB2,087 (US$288) of expected credit losses for the six months ended June 30, 2023. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Income taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”) |
Organization (Tables)
Organization (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization [Abstract] | |
Schedule of Principal Subsidiaries | As of the date of this report, the details of the Company’s principal subsidiaries are as follows: Entity Date of Place of Percentage Principal activities Subsidiaries: Youcang Limited (“Youcang”) June 30, 2021 British Virgin Islands 100% Investment holding Energy U Limited (“Energy U”) July 19, 2021 Hong Kong 100% Investment holding Shandong Yousheng New Energy Technology Development Co, Ltd. (“WFOE”) (1) January 27, 2022 PRC 100% Provision of technical and consultation services Anhui Yousheng New Energy Co., Ltd (“AHYS”) (1) May 16, 2013 PRC 100% Dormant Company Youpin Automobile Service Group Co. Ltd. (“Youpin”) (1) July 18, 2013 PRC 53.1072% Provision of new energy vehicles sales, battery swapping stations sales, battery swapping services and sourcing services Shanghai Youqiao International Trade Co., Ltd. (“SH Youqiao”) (1) May 29, 2014 PRC 100% Dormant Company Shanghai Youchuangneng Digital Technology Co., Ltd. (“SY Digital Tech) (1) November 13, 2015 PRC 100% Provision of new energy vehicles sales, battery swapping stations sales, battery swapping services and sourcing services Youguan Financial Leasing Co., Ltd. (“Youguan Financial Leasing”) (1) February 27, 2017 PRC 100% Dormant Company Chengdu Youyipin Trading Co., Ltd. (“CD Youyipin”) (1) June 21, 2019 PRC 100% Dormant Company Zhejiang Youguan Automobile Service Co., Ltd. (“ZJ Youguan”) (1) May 21, 2020 PRC 80% Provision of sourcing services Youpin Automobile Service (Shandong) Co., Ltd. (“Youpin SD”) (1) June 30, 2020 PRC 86.96% Provision of new energy vehicles sales and sourcing services Chengdu Youyineng Automobile Service Co., Ltd. (“CD Youyineng”) (1) October 29, 2020 PRC 100% Provision of battery swapping stations manufacturing Shanghai Youteng Automobile Service Co., Ltd. (“SH Youteng”) (1) November 3, 2020 PRC 70% Dormant Company Liaoning Youguan New Energy Technology Co. Ltd. (“LY New Energy”) (1) November 8, 2019 PRC 100% Provision of new energy vehicles sales and sourcing services Zibo Youyipin Trading Co. Ltd. (“Zibo Youyipin”) (1) March 18, 2021 PRC 100% Dormant Company Shanghai Youxu New Energy Technology Co., Ltd. (“SH Youxu”) (1) March 22, 2021 PRC 100% Provision of battery swapping stations sales and battery swapping services Dalian Youshengchi Automobile Trading Service Co., Ltd. (“DL Youshengchi”) (1) March 23, 2021 PRC 100% Dormant Company Quanzhou Youyi Power Exchange Network Technology Co., Ltd. (“QZ Youyi”) (1) June 29, 2021 PRC 100% Provision of battery swapping services Youxu New Energy Technology (Zibo) Co., Ltd. (“Youxu Zibo”) (1) July 29, 2021 PRC 100% Provision of batter swapping stations manufacturing Youxu (Xiamen) Power Exchange Network Technology Co., Ltd. (“Youxu XM”) (1) August 10, 2021 PRC 100% Provision of battery swapping services Xinjiang Youxu Supply Chain Management Co., Ltd. (“XJ Youxu”) (1) October 12, 2021 PRC 100% Dormant Company Wuhu Youxu New Energy Technology Co., Ltd. (“WH Youxu”) (1) November 12, 2021 PRC 100% Provision of batter swapping stations manufacturing Beijing Youxu New Energy Technology Co., Ltd. (“BJ Youxu”) (1) December 21, 2021 PRC 100% Dormant Company Henan Youxu New Energy Technology Co., Ltd. (“HN Youxu”) (1) December 1, 2022 PRC 80% Dormant Company Youxu New Energy (Dalian) Co., Ltd. (“DL Youxu”) (1) June 8, 2022 PRC 100% Dormant Company Tai’an Youxu New Energy Technology Co., Ltd. (“TA Youxu”) (1) August 22, 2022 PRC 100% Dormant Company Shandong Youxu New Energy Co., Ltd. (“SD Youxu”) (1) August 26, 2022 PRC 100% Dormant Company Nanning Youguan Digital Technology Co., Ltd (“NN Youguan”) (1) July 12, 2022 PRC 100% Dormant Company Youxu New Energy Technology (Nanyang) Co., Ltd. (“NY Youxu”) (1) March 14, 2023 PRC 70% Provision of batter swapping stations manufacturing Liaoning Youxu New Energy Technology Co., Ltd. (“LN Youxu”) (1) March 9, 2023 PRC 51% Provision of batter swapping stations manufacturing (1) Collectively, the “PRC subsidiaries”. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | Within the property, plant and equipment, the value for construction in process is included within the manufacturing equipment. Category Estimated useful life Leasehold improvements 1-3 years Manufacturing equipment 3 – 10 years Computer and electronic equipment 3 – 5 years Office equipment 2 – 4 years Motor vehicles 3 – 4 years |
Schedule of Amounts and Percentages of Total Revenues | The following table sets forth a breakdown of our revenues, in absolute amounts and percentages of total revenues for the six months ended June 30, 2022 and 2023, For the Six Months Ended June 30, 2022 2023 RMB % RMB US$ % (in thousands, except for percentages) Sourcing services 1,300 30.4 1,435 198 75.7 Product sales 2,634 61.6 - - - Battery-swapping services 343 8.0 461 64 24.3 Total revenues 4,277 100.0 1,896 262 100.0 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable and the expected credit losses consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Accounts receivable 1,617 684 94 Less: expected credit losses - (29 ) (4 ) 1,617 655 90 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory [Abstract] | |
Schedule of Inventory | December 31 June 30 2022 2023 RMB RMB US$ Raw materials 1,793 1,782 246 Low value consumables 41 52 8 Finished goods 3,803 4,951 682 Less: inventory impairment (180 ) (180 ) (25 ) 5,457 6,605 911 |
Advance to Suppliers (Tables)
Advance to Suppliers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Advance to Suppliers [Abstract] | |
Schedule of Advance to Suppliers | Advance to suppliers consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Advance to suppliers 15,359 26,212 3,614 Less: expected credit losses (8,366 ) (8,799 ) (1,213 ) 6,993 17,413 2,401 |
Schedule of Allowance for Doubtful Accounts | An analysis of the expected credit losses was as follows: December 31 June 30 2022 2023 RMB RMB US$ Balance at beginning of the year - (8,366 ) (1,153 ) Additional allowance for credit losses charged to expense (8,366 ) (433 ) (60 ) Balance at the end of the year (8,366 ) (8,799 ) (1,213 ) |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Tax recoverable 7,976 9,837 1,356 Loans to third parties 24,581 28,860 3,980 Deposits 1,218 1,138 157 Staff advances 336 434 60 Compensation receivable 842 100 14 Others 399 435 60 Less: expected credit losses (1,435 ) (3,060 ) (422 ) 33,917 37,744 5,205 |
Schedule of Allowance for Doubtful Accounts | An analysis of the expected credit losses was as follows: December 31 June 30 2022 2023 RMB RMB US$ Balance at beginning of the year - (1,435 ) (198 ) Additional allowance for credit losses charged to expense (1,435 ) (1,625 ) (224 ) Balance at the end of the year (1,435 ) (3,060 ) (422 ) |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Leasehold improvements 754 754 104 Computer and network equipment 1,235 1,235 170 Manufacturing equipment 14,370 13,297 1,834 Office equipment 187 187 26 Motor vehicles 3,896 4,003 552 20,442 19,476 2,686 Less: Accumulated depreciation (4,160 ) (5,430 ) (749 ) 16,282 14,046 1,937 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets | The following table presents the Group’s intangible assets as of the respective balance sheet dates: Purchased Internal - use Total Total RMB RMB RMB US$ Net balance as of December 31, 2022 286 - 286 39 Additions - - - - Amortization expense (50 ) - (50 ) (6 ) Net balance as of June 30, 2023 236 - 236 33 |
Schedule of Estimated Amortization Expenses for the Intangible Assets | The annual estimated amortization expenses for the intangible assets for each of the next five years are as follows: RMB US$ 2023 (July – December) 35 5 2024 70 10 2025 70 10 2026 61 8 236 33 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Long-Term Investments [Abstract] | |
Schedule of Long-Term Investments | The Group’s long-term investments consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Equity investments: Zibo Hengxin Investment Partnership (Limited Partnership) (the “Fund”) (i) 110,000 110,000 15,170 Huzhou Zheyou New Energy Sales Co., Ltd. (“Huzhou Zheyou”) (ii) 1,711 1,691 233 Chengdu Zhibo Premium Technology Co., Ltd. (“Chengdu Zhibo”) (iii) 100 100 14 Impairment on equity investments without readily determinable fair value - - - 111,811 111,791 15,417 (i) In December 2020, the Group entered into a partnership agreement with Zibo Hengxin Investment Partnership (Limited Partnership) and its participating shareholder, Guanmiao (Beijing) Investment Management Co., Ltd. (“Guanmiao”), whereby the Group agreed to purchased limited partnership interest in Zibo Hengxin Investment Fund Partnership (Limited Partnership) (the “Fund”) in the amount of RMB120,000, which entitles the Group an aggregate interest of approximately 99% in the Fund. In December 2021, the Fund decreased the total partnership capital to RMB111,200 and returned to the Group by RMB10,000 and the aggregate interest of the Group was subsequently diluted to 98.9%. For the six months ended June 30, 2023, the Group generated an investment income of RMB0.01 (US$0.0014) from the operating result of Zibo Hengxin. There was no unfunded commitment to the Fund as of June 30, 2023. The Fund’s investment strategy is primarily to invest in emerging companies of new energy automobile industry. The Fund is scheduled to be in existence until 2025, unless terminated sooner or extended in accordance with the amended and restated limited partnership agreement. (ii) In April 2022, the Group entered into an agreement to invest in Huzhou Zheyou New Energy Sales Co., Ltd. (“Huzhou Zheyou”), and injected capital of RMB1,750 in June 2022. The Group held an equity interest of 35% as of June 30, 2023. For the six months ended June 30, 2023, the Group generated an investment loss of RMB20 (US$3) from the operating result of Huzhou Zheyou. (iii) The Group entered into an agreement to invest in Chengdu Zhibo Premium Technology Co., Ltd. (“Chengdu Zhibo”), and injected capital of RMB100 in November 2022. The Group held an equity interest of 40% and has significant influence on Chengdu Zhibo. There was no investment income or loss recognized, as a result, no income or loss was generated in Chengdu Zhibo for the year ended December 31, 2022 and for the six months ended June 30, 2023. |
Bank Borrowings (Tables)
Bank Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Bank Borrowings [Abstract] | |
Schedule of Bank Borrowings | Bank borrowings were as follows as of the respective balance sheet dates: December 31 June 30 2022 2023 RMB RMB US$ Long-term bank borrowing, current portion - - - Long-term bank borrowing, non-current portion 10,000 10,000 1,379 10,000 10,000 1,379 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: December 31 June 30 2022 2023 RMB RMB US$ Payroll and welfare payables 1,846 2,369 327 Loan from a third party 13,104 19,965 2,753 Interest payables 639 881 39 Customer deposit 301 282 121 Payables for purchase of property and equipment 964 1,051 145 Accrued expenses 10,928 3,170 437 Deferred consideration in relation to investment 5,300 2,300 317 Others 653 412 57 33,735 30,430 4,196 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Operating Leases | A summary of supplemental information related to operating leases as of the year ended December 31, 2022 and the six months ended June 30, 2023 was as follows: December 31 June 30 2022 2023 RMB RMB US$ Operating lease right-of-use assets, net 19,250 16,819 2,319 Operating lease liabilities, current 1,696 1,271 175 Operating lease liabilities, non-current 4,789 4,361 601 Weighted average remaining lease terms 3.79 years 2.83 years Weighted average discount rate 4.41 % 4.25 % |
Schedule of Cash Flow Information | Cash flow information related to leases consists of the following: December 31 June 30 2022 2023 RMB RMB US$ Right-of-use assets obtained in exchange for new operating lease liabilities 6,603 331 46 Derecognition of right-of use-assets 7,408 - - Derecognition of lease liabilities 5,658 - - |
Schedule of Amortization of Right-of-Use Assets | Amortization of right-of-use assets: As of RMB FY2023 960 FY2024 1,063 FY2025 1,075 FY2026 1,087 FY2027 1,087 FY2028 620 FY2029 290 FY2030 147 Total future lease payment 6,329 less: imputed interest 697 Represent value of future lease payments (1) 5,632 (1) Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB1,271 (US$175) and RMB4,361 (US$601) as of June 30, 2023. |
Loan Payables (Tables)
Loan Payables (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payables [Abstract] | |
Schedule of Loan Payables | Loan payables were as follows as of the respective balance sheet dates: December 31 June 30 2022 2023 RMB RMB US$ Loan payables, current portion 6,500 6,500 896 Loan payables, non-current portion - - - 6,500 6,500 896 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Major Related Parties that Transacted with the Group | Major related parties that transacted with the Group and their respective relationship to the Group listed as below: Names of the related parties Relationship with the Group Hangzhou Youyue Travel Technology Co., Ltd. (“Hangzhou Youyue”) An affiliate of Bingyi Zhao Jia Li Controlling shareholder, Director and CEO of U Power Limited Bingyi Zhao Director and Chief Financial Officer of U Power Limited Youche Jingpin E-commerce (Shanghai) Co., Ltd. (“Youche Jingpin”) An affiliate of Jia Li Shanghai Youcang Business Consulting Partnership (Limited Partnership) (“Shanghai Youcang”) An affiliate of Jia Li Nanmu (Shanghai) Finance Leasing Co., Ltd. (“Nanmu”) An affiliate of Jia Li |
Schedule of Amounts Due from Related Parties | (a) Amounts due from related parties December 31 June 30 2022 2023 RMB RMB US$ Youche Jingpi 20 20 3 Shanghai Youcang 100 155 21 120 175 24 |
Schedule of Amounts Due to Related Parties | (b) Amounts due to related parties December 31 June 30 2022 2023 RMB RMB US$ Jia Li 228 2,701 372 Bingyi Zhao 23 22 3 Hangzhou Youyue - 6 1 Nanmu - 8,534 1,177 251 11,263 1,553 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Taxes | Loss before income taxes consisted of: June 30 June 30 2022 2023 RMB RMB US$ Non-PRC - - - PRC (12,981 ) (5,834 ) (806 ) (12,981 ) (5,834 ) (806 ) |
Schedule of Income Tax Expenses | The following table presents the composition of income tax expenses for the six months ended June 30, 2022 and 2023: June 30 June 30 2022 2023 RMB RMB US$ Current income tax expense 5 1,344 185 Deferred income tax expense - - - 5 1,344 185 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share for the years presented were calculated as follows: June 30 June 30 2022 2023 RMB RMB US$ Numerator: Net loss (12,986 ) (7,178 ) (991 ) Less: net loss attributable to non-controlling interest (2,029 ) (3,711 ) (512 ) Net loss attributable to the Company’s ordinary shareholders (10,957 ) (3,467 ) (479 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic and diluted earnings per share 50,000,000 50,416,667 50,416,667 Basic and diluted earnings per share: (0.22 ) (0.07 ) (0.01 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Contractual Obligations | The following table sets forth the Group’s contractual obligations as of June 30, 2023: Payment due by period Total Less than 1-3 years 3-5 years More than RMB US$ Long-term bank borrowings (i) 10,000 1,379 - 10,000 - - Operating lease liabilities (ii) 5,632 776 1,271 1,837 1,967 557 Loan payable to WuYi Transportation Construction (iii) 6,500 896 6,500 - - - Payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) (iv) 1,281 177 1,281 - - - Total 23,413 3,228 9,477 11,785 1,991 1,013 (i) Youxu Zibo’s commitment for long-term bank borrowings as of June 30, 2023 is discussed in Note 13 BANK BORROWINGS. (ii) Our commitment for minimum lease payments under the remaining operating leases as of June 30, 2023, 2022 is discussed in Note 15 LEASES. (iii) ZJ Youguan’s commitment for loan payable to WuYi Transportation Construction as of June 30, 2023 is discussed in Note 16 LOAN PAYABLES and Note 23 SUBSEQUENT EVENTS. (iv) AHYS’s commitment for the payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) as of June 30, 2023 is discussed in Note 23 SUBSEQUENT EVENTS. |
Organization (Details)
Organization (Details) - IPO [Member] $ in Thousands | 1 Months Ended |
Apr. 30, 2023 USD ($) shares | |
Organization (Details) [Line Items] | |
Issued ordinary shares | shares | 2,416,667 |
Net proceeds | $ | $ 13,002 |
Organization (Details) - Schedu
Organization (Details) - Schedule of Principal Subsidiaries | 6 Months Ended | |
Jun. 30, 2023 | ||
Youcang Limited (“Youcang”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | June 30, 2021 | |
Place of incorporation | British Virgin Islands | |
Percentage of direct or indirect ownership by the Company | 100% | |
Principal activities | Investment holding | |
Energy U Limited (“Energy U”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | July 19, 2021 | |
Place of incorporation | Hong Kong | |
Percentage of direct or indirect ownership by the Company | 100% | |
Principal activities | Investment holding | |
Shandong Yousheng New Energy Technology Development Co, Ltd. (“WFOE”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | January 27, 2022 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of technical and consultation services | [1] |
Anhui Yousheng New Energy Co., Ltd (“AHYS”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | May 16, 2013 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Youpin Automobile Service Group Co. Ltd. (“Youpin”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | July 18, 2013 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 53.1072% | [1] |
Principal activities | Provision of new energy vehicles sales, battery swapping stations sales, battery swapping services and sourcing services | [1] |
Shanghai Youqiao International Trade Co., Ltd. (“SH Youqiao”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | May 29, 2014 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Shanghai Youchuangneng Digital Technology Co., Ltd. (“SY Digital Tech) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | November 13, 2015 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of new energy vehicles sales, battery swapping stations sales, battery swapping services and sourcing services | [1] |
Youguan Financial Leasing Co., Ltd. (“Youguan Financial Leasing”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | February 27, 2017 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Chengdu Youyipin Trading Co., Ltd. (“CD Youyipin”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | June 21, 2019 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Zhejiang Youguan Automobile Service Co., Ltd. (“ZJ Youguan”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | May 21, 2020 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 80% | [1] |
Principal activities | Provision of sourcing services | [1] |
Youpin Automobile Service (Shandong) Co., Ltd. (“Youpin SD”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | June 30, 2020 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 86.96% | [1] |
Principal activities | Provision of new energy vehicles sales and sourcing services | [1] |
Chengdu Youyineng Automobile Service Co., Ltd. (“CD Youyineng”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | October 29, 2020 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of battery swapping stations manufacturing | [1] |
Shanghai Youteng Automobile Service Co., Ltd. (“SH Youteng”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | November 3, 2020 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 70% | [1] |
Principal activities | Dormant Company | [1] |
Liaoning Youguan New Energy Technology Co. Ltd. (“LY New Energy”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | November 8, 2019 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of new energy vehicles sales and sourcing services | [1] |
Zibo Youyipin Trading Co. Ltd. (“Zibo Youyipin”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | March 18, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Shanghai Youxu New Energy Technology Co., Ltd. (“SH Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | March 22, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of battery swapping stations sales and battery swapping services | [1] |
Dalian Youshengchi Automobile Trading Service Co., Ltd. (“DL Youshengchi”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | March 23, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Quanzhou Youyi Power Exchange Network Technology Co., Ltd. (“QZ Youyi”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | June 29, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of battery swapping services | [1] |
Youxu New Energy Technology (Zibo) Co., Ltd. (“Youxu Zibo”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | July 29, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of batter swapping stations manufacturing | [1] |
Youxu (Xiamen) Power Exchange Network Technology Co., Ltd. (“Youxu XM”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | August 10, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of battery swapping services | [1] |
Xinjiang Youxu Supply Chain Management Co., Ltd. (“XJ Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | October 12, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Wuhu Youxu New Energy Technology Co., Ltd. (“WH Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | November 12, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Provision of batter swapping stations manufacturing | [1] |
Beijing Youxu New Energy Technology Co., Ltd. (“BJ Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | December 21, 2021 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Henan Youxu New Energy Technology Co., Ltd. (“HN Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | December 1, 2022 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 80% | [1] |
Principal activities | Dormant Company | [1] |
Youxu New Energy (Dalian) Co., Ltd. (“DL Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | June 8, 2022 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Tai’an Youxu New Energy Technology Co., Ltd. (“TA Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | August 22, 2022 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Shandong Youxu New Energy Co., Ltd. (“SD Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | August 26, 2022 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Nanning Youguan Digital Technology Co., Ltd (“NN Youguan”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | July 12, 2022 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 100% | [1] |
Principal activities | Dormant Company | [1] |
Shanghai Haiyou Automobile Service Co., Ltd (“SH Automobile”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | March 14, 2023 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 70% | [1] |
Principal activities | Provision of batter swapping stations manufacturing | [1] |
Liaoning Youxu New Energy Technology Co., Ltd. (“LN Youxu”) [Member] | ||
Subsidiaries: | ||
Date of incorporation/ acquisition | March 9, 2023 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect ownership by the Company | 51% | [1] |
Principal activities | Provision of batter swapping stations manufacturing | [1] |
[1] Collectively, the “PRC subsidiaries”. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2023 CNY (¥) ¥ / shares | Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Foreign currency translation gain or loss recognized (in Dollars) | $ | |||||
Convenience translation rate | (per share) | ¥ 7.2513 | $ 1 | |||
Allowances for doubtful accounts | $ 288 | ¥ 9,801 | |||
Inventory impairment | 180 | ||||
Underpayment taxes | 100 | $ 15 | |||
Recognized commitments and contingencies | ¥ 2,900 | ||||
Expected credit losses | ¥ 2,087 | $ 288 | |||
Minimum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Estimated useful lives | 3 years | 3 years | |||
Minimum [Member] | VAT [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Gross sales price percentage | 6% | 6% | |||
Maximum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Estimated useful lives | 5 years | 5 years | |||
Maximum [Member] | VAT [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Gross sales price percentage | 13% | 13% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment | Jun. 30, 2023 |
Leasehold improvements [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 1 year |
Leasehold improvements [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Manufacturing equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Manufacturing equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Computer and electronic equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer and electronic equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Office equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Office equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Motor vehicles [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Motor vehicles [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Amounts and Percentages of Total Revenues ¥ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | |
Revenue, Major Customer [Line Items] | |||
Total revenues amount | ¥ 1,896 | $ 100,000 | ¥ 4,277 |
Total revenues percentage | 262% | 262% | 100% |
Sourcing services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues amount | ¥ 1,435 | $ 75,700 | ¥ 1,300 |
Total revenues percentage | 198% | 198% | 30.40% |
Product sales [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues amount | ¥ 2,634 | ||
Total revenues percentage | 61.60% | ||
Battery-swapping services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Total revenues amount | ¥ 461 | $ 24,300 | ¥ 343 |
Total revenues percentage | 64% | 64% | 8% |
Liquidity (Details)
Liquidity (Details) ¥ in Thousands | 6 Months Ended | |||||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | |
Liquidity [Line Items] | ||||||
Net loss | ¥ 7,178 | $ (991,000) | ||||
Operating cash flows | 6,003 | $ 829,000 | ||||
Net current liabilities | 97,058 | 13,385,000 | ||||
Accumulated deficit | 157,305 | (21,693,000) | ||||
Capital contribution issurance | 97,653 | $ 13,467,000 | ||||
Cash and cash equivalents and restricted cash | ¥ 108,857 | $ 15,012,000 | ¥ 5,908 | $ 814,800 |
Concentration of Risks (Details
Concentration of Risks (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Concentration of Risks (Details) [Line Items] | |||
Deposit amount | $ | $ 15,012 | ||
Credit Risk [Member] | |||
Concentration of Risks (Details) [Line Items] | |||
Deposit amount | ¥ 108,857 | ¥ 5,908 | |
Deposit insurance limit | ¥ 500 |
Accounts Receivable (Details)
Accounts Receivable (Details) ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Accounts Receivable, Net [Abstract] | |||
Allowance for doubtful accounts | ¥ 29 | $ 4 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of Accounts Receivable ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Accounts Receivable [Abstract] | |||
Accounts receivable | ¥ 684 | $ 94 | ¥ 1,617 |
Less: expected credit losses | (29) | (4) | |
Accounts receivable, net | ¥ 655 | $ 90 | ¥ 1,617 |
Inventory (Details)
Inventory (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory [Abstract] | ||
Impairment of inventory | ¥ 180 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of Inventory ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Inventory [Line Items] | |||
Less: inventory impairment | ¥ (180) | $ (25) | ¥ (180) |
Inventory, Net | 6,605 | 911 | 5,457 |
Produce cost | 52 | 8 | 41 |
Raw materials [Member] | |||
Inventory [Line Items] | |||
Inventory, gross | 1,782 | 246 | 1,793 |
Finished Goods [Member] | |||
Inventory [Line Items] | |||
Inventory, gross | ¥ 4,951 | $ 682 | ¥ 3,803 |
Advance to Suppliers (Details)
Advance to Suppliers (Details) - Schedule of Advance to Suppliers ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Advance to Suppliers [Abstract] | |||
Advance to suppliers | ¥ 26,212 | $ 3,614 | ¥ 15,359 |
Less: expected credit losses | (8,799) | (1,213) | (8,366) |
Advance to suppliers, net | ¥ 17,413 | $ 2,401 | ¥ 6,993 |
Advance to Suppliers (Details_2
Advance to Suppliers (Details) - Schedule of Allowance for Doubtful Accounts ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Allowance for Doubtful Accounts [Abstract] | |||
Balance at beginning of the year | ¥ (8,366) | $ (1,153) | |
Additional allowance for credit losses charged to expense | (433) | (60) | (8,366) |
Balance at the end of the year | ¥ (8,799) | $ (1,213) | ¥ (8,366) |
Other Current Assets (Details)
Other Current Assets (Details) - Schedule of Other Current Assets - Other Current Assets [Member] ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Other Current Assets (Details) - Schedule of Other Current Assets [Line Items] | |||
Tax recoverable | ¥ 9,837 | $ 1,356 | ¥ 7,976 |
Loans to third parties | 28,860 | 3,980 | 24,581 |
Deposits | 1,138 | 157 | 1,218 |
Staff advances | 434 | 60 | 336 |
Compensation receivable | 100 | 14 | 842 |
Others | 435 | 60 | 399 |
Less: expected credit losses | (3,060) | (422) | (1,435) |
Other current assets | ¥ 37,744 | $ 5,205 | ¥ 33,917 |
Other Current Assets (Details_2
Other Current Assets (Details) - Schedule of Allowance for Doubtful Accounts ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Schedule of Allowance for Doubtful Accounts [Abstract] | |||
Balance at beginning of the year | ¥ (1,435) | $ (198) | |
Additional allowance for credit losses charged to expense | (1,625) | (224) | (1,435) |
Balance at the end of the year | ¥ (3,060) | $ (422) | ¥ (1,435) |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation expense | ¥ 1,269 | $ 175 | ¥ 539 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of Property and Equipment ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net gross | ¥ 19,476 | $ 2,686 | ¥ 20,442 |
Less: Accumulated depreciation | (5,430) | (749) | (4,160) |
Total construction in progress | 14,046 | 1,937 | 16,282 |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net gross | 754 | 104 | 754 |
Computer and network equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net gross | 1,235 | 170 | 1,235 |
Manufacturing equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net gross | 13,297 | 1,834 | 14,370 |
Office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net gross | 187 | 26 | 187 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net gross | ¥ 4,003 | $ 552 | ¥ 3,896 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | |
Intangible Assets, Net (Details) [Line Items] | |||
Amortization expense | ¥ 50 | $ 6 | ¥ 312 |
Minimum [Member] | |||
Intangible Assets, Net (Details) [Line Items] | |||
Estimated useful lives | 1 year | 1 year | |
Maximum [Member] | |||
Intangible Assets, Net (Details) [Line Items] | |||
Estimated useful lives | 10 years | 10 years |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets - 6 months ended Jun. 30, 2023 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||
Net balance, beginning | ¥ 286 | $ 39 |
Additions | ||
Amortization expense | (50) | (6) |
Net balance, ending | 236 | $ 33 |
Purchased software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net balance, beginning | 286 | |
Additions | ||
Amortization expense | (50) | |
Net balance, ending | 236 | |
Internal -use software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net balance, beginning | ||
Additions | ||
Amortization expense | ||
Net balance, ending |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Estimated Amortization Expenses for the Intangible Assets - Jun. 30, 2023 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Schedule of Estimated Amortization Expenses for the Intangible Assets [Abstract] | ||
2023 (July – December) | ¥ 35 | $ 5 |
2024 | 70 | 10 |
2025 | 70 | 10 |
2026 | 61 | 8 |
Amortization expenses for intangible assets | ¥ 236 | $ 33 |
Long-Term Investments (Details)
Long-Term Investments (Details) | 6 Months Ended | |||||
Nov. 30, 2022 CNY (¥) | Jun. 30, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | |
Long-Term Investments (Details) [Line Items] | ||||||
Cash amount | ¥ 120,000,000 | |||||
Aggregate interest percentage | 99% | |||||
Partners capital | ¥ 111,200,000 | |||||
Aggregate interest | ¥ 10,000,000 | |||||
Diluted percentage | 98.90% | |||||
Investment income | ¥ 10 | $ 1.4000 | ||||
Huzhou Zheyou [Member] | ||||||
Long-Term Investments (Details) [Line Items] | ||||||
Injected capital | ¥ 1,750,000 | |||||
Equity interest percentage | 35% | 35% | ||||
Investment loss | ¥ 20,000 | $ 3,000 | ||||
Chengdu Zhibo [Member] | ||||||
Long-Term Investments (Details) [Line Items] | ||||||
Injected capital | ¥ 100,000 | |||||
Equity interest percentage | 40% | 40% |
Long-Term Investments (Detail_2
Long-Term Investments (Details) - Schedule of Long-Term Investments ¥ in Thousands, $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2023 USD ($) | ||
Equity investments: | |||||
Impairment on equity investments without readily determinable fair value | |||||
Long-term investments, Total | 111,791 | 111,811 | $ 15,417 | ||
Zibo Hengxin Investment Partnership (Limited Partnership) (the “Fund”) [Member] | |||||
Equity investments: | |||||
Equity investments | [1] | 110,000 | 110,000 | 15,170 | |
Huzhou Zheyou New Energy Sales Co., Ltd. (“Huzhou Zheyou”) [Member] | |||||
Equity investments: | |||||
Equity investments | [2] | 1,691 | 1,711 | 233 | |
Chengdu Zhibo Premium Technology Co., Ltd. (“Chengdu Zhibo”) [Member] | |||||
Equity investments: | |||||
Equity investments | [3] | ¥ 100 | ¥ 100 | $ 14 | |
[1]In December 2020, the Group entered into a partnership agreement with Zibo Hengxin Investment Partnership (Limited Partnership) and its participating shareholder, Guanmiao (Beijing) Investment Management Co., Ltd. (“Guanmiao”), whereby the Group agreed to purchased limited partnership interest in Zibo Hengxin Investment Fund Partnership (Limited Partnership) (the “Fund”) in the amount of RMB120,000, which entitles the Group an aggregate interest of approximately 99% in the Fund. In December 2021, the Fund decreased the total partnership capital to RMB111,200 and returned to the Group by RMB10,000 and the aggregate interest of the Group was subsequently diluted to 98.9%. For the six months ended June 30, 2023, the Group generated an investment income of RMB0.01 (US$0.0014) from the operating result of Zibo Hengxin. There was no unfunded commitment to the Fund as of June 30, 2023.The Fund’s investment strategy is primarily to invest in emerging companies of new energy automobile industry. The Fund is scheduled to be in existence until 2025, unless terminated sooner or extended in accordance with the amended and restated limited partnership agreement.[2] In April 2022, the Group entered into an agreement to invest in Huzhou Zheyou New Energy Sales Co., Ltd. (“Huzhou Zheyou”), and injected capital of RMB1,750 in June 2022. The Group held an equity interest of 35% as of June 30, 2023. For the six months ended June 30, 2023, the Group generated an investment loss of RMB20 (US$3) from the operating result of Huzhou Zheyou. The Group entered into an agreement to invest in Chengdu Zhibo Premium Technology Co., Ltd. (“Chengdu Zhibo”), and injected capital of RMB100 in November 2022. The Group held an equity interest of 40% and has significant influence on Chengdu Zhibo. There was no investment income or loss recognized, as a result, no income or loss was generated in Chengdu Zhibo for the year ended December 31, 2022 and for the six months ended June 30, 2023. |
Refundable Deposit for Invest_2
Refundable Deposit for Investment (Details) | Jun. 30, 2023 |
Refundable Deposit for Investment [Abstract] | |
Bearing interest rate percentage | 3% |
Bank Borrowings (Details)
Bank Borrowings (Details) - CNY (¥) | Jun. 30, 2023 | Dec. 13, 2021 |
Bank Borrowings (Details) [Line Items] | ||
Borrow loan | ¥ 6,500,000 | ¥ 10,000 |
Youxu Zibo [Member] | ||
Bank Borrowings (Details) [Line Items] | ||
Weighted average interest rate | 6.87% |
Bank Borrowings (Details) - Sch
Bank Borrowings (Details) - Schedule of Bank Borrowings ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Bank Borrowings [Abstract] | |||
Long-term bank borrowing, current portion | |||
Long-term bank borrowing, non-current portion | 10,000 | 1,379 | 10,000 |
Total | ¥ 10,000 | $ 1,379 | ¥ 10,000 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - Schedule of Accrued Expenses and Other Liabilities ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of the Accrued Expenses and Other Liabilities [Abstract] | |||
Payroll and welfare payables | ¥ 2,369 | $ 327 | ¥ 1,846 |
Loan from a third party | 19,965 | 2,753 | 13,104 |
Interest payables | 881 | 39 | 639 |
Customer deposit | 282 | 121 | 301 |
Payables for purchase of property and equipment | 1,051 | 145 | 964 |
Accrued expenses | 3,170 | 437 | 10,928 |
Deferred consideration in relation to investment | 2,300 | 317 | 5,300 |
Others | 412 | 57 | 653 |
Total accrued expenses and other current liabilities | ¥ 30,430 | $ 4,196 | ¥ 33,735 |
Leases (Details)
Leases (Details) - Jun. 30, 2023 - Operating Lease [Member] ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Leases (Details) [Line Items] | ||
Operating lease liabilities, current | ¥ 1,271 | $ 175 |
Operating lease liabilities, non current | ¥ 4,361 | $ 601 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Operating Leases ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Operating Leases [Abstract] | |||
Operating lease right-of-use assets, net | ¥ 16,819 | $ 2,319 | ¥ 19,250 |
Operating lease liabilities, current | 1,271 | 175 | 1,696 |
Operating lease liabilities, non-current | ¥ 4,361 | $ 601 | ¥ 4,789 |
Weighted average remaining lease terms | 2 years 9 months 29 days | 2 years 9 months 29 days | 3 years 9 months 14 days |
Weighted average discount rate | 4.25% | 4.25% | 4.41% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Cash Flow Information ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Schedule of Cash Flow Information [Abstract] | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | ¥ 331 | $ 46 | ¥ 6,603 |
Derecognition of right-of use-assets | 7,408 | ||
Derecognition of lease liabilities | ¥ 5,658 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Amortization of Right-of-Use Assets ¥ in Thousands | Jun. 30, 2023 CNY (¥) | |
Schedule of Amortization of Right-of-Use Assets [Abstract] | ||
FY2023 | ¥ 960 | |
FY2024 | 1,063 | |
FY2025 | 1,075 | |
FY2026 | 1,087 | |
FY2027 | 1,087 | |
FY2028 | 620 | |
FY2029 | 290 | |
FY2030 | 147 | |
Total future lease payments | 6,329 | |
Less: Imputed interest | 697 | |
Represent value of future lease payments | ¥ 5,632 | [1] |
[1] Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB1,271 (US$175) and RMB4,361 (US$601) as of June 30, 2023. |
Loan Payables (Details)
Loan Payables (Details) - CNY (¥) | 1 Months Ended | ||||||
Jul. 29, 2022 | Dec. 29, 2021 | Oct. 29, 2021 | Jul. 27, 2021 | Jun. 30, 2023 | Dec. 13, 2021 | Sep. 17, 2020 | |
Loan Payables (Details) [Line Items] | |||||||
Loan borrowed | ¥ 20,000,000 | ||||||
Loan repaid amount | ¥ 500,000 | ¥ 1,000,000 | ¥ 2,000,000 | ¥ 10,000,000 | |||
Loan outstanding balance | ¥ 6,500,000 | ¥ 10,000 | |||||
ZJ Youguan [Member] | |||||||
Loan Payables (Details) [Line Items] | |||||||
Weighted average interest rate | 7.50% |
Loan Payables (Details) - Sched
Loan Payables (Details) - Schedule of Loan Payables ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Schedule of Loan Payables [Abstract] | |||
Loan payables, current portion | ¥ 6,500 | $ 896 | ¥ 6,500 |
Loan payables, non-current portion | |||
Loan payables | ¥ 6,500 | $ 896 | ¥ 6,500 |
Related Party Transactions (Det
Related Party Transactions (Details) - Schedule of Major Related Parties that Transacted with the Group | 6 Months Ended |
Jun. 30, 2023 | |
Hangzhou Youyue Travel Technology Co., Ltd. (“Hangzhou Youyue”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | An affiliate of Bingyi Zhao |
Jia Li [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Controlling shareholder, Director and CEO of U Power Limited |
Bingyi Zhao [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Director and Chief Financial Officer of U Power Limited |
Youche Jingpin E-commerce (Shanghai) Co., Ltd. (“Youche Jingpin”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | An affiliate of Jia Li |
Shanghai Youcang Business Consulting Partnership (Limited Partnership) (“Shanghai Youcang”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | An affiliate of Jia Li |
Nanmu (Shanghai) Finance Leasing Co., Ltd. (“Nanmu”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | An affiliate of Jia Li |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Amounts Due from Related Parties ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Related Party Transactions (Details) - Schedule of Amounts Due from Related Parties [Line Items] | |||
Amounts due from related parties | ¥ 175 | $ 24 | ¥ 120 |
Youche Jingpi [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Due from Related Parties [Line Items] | |||
Amounts due from related parties | 20 | 3 | 20 |
Shanghai Youcang [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Due from Related Parties [Line Items] | |||
Amounts due from related parties | ¥ 155 | $ 21 | ¥ 100 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Amounts Due to Related Parties ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Related Party Transactions (Details) - Schedule of Amounts Due to Related Parties [Line Items] | |||
Amounts due to related parties | ¥ 11,263 | $ 1,553 | ¥ 251 |
Jia Li [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Due to Related Parties [Line Items] | |||
Amounts due to related parties | 2,701 | 372 | 228 |
Bingyi Zhao [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Due to Related Parties [Line Items] | |||
Amounts due to related parties | 22 | 3 | 23 |
Hangzhou Youyue [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Due to Related Parties [Line Items] | |||
Amounts due to related parties | 6 | 1 | |
Nanmu [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Due to Related Parties [Line Items] | |||
Amounts due to related parties | ¥ 8,534 | $ 1,177 |
Employee Benefit Expenses (Deta
Employee Benefit Expenses (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | |
Employee Benefit Expenses [Abstract] | |||
Employee benefit expenses | ¥ 1,892 | $ 261 | ¥ 2,168 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended |
Jun. 30, 2023 HKD ($) | |
Income Taxes (Details) [Line Items] | |
Percentage of income tax rate | 25% |
Existing tax rate | 16.50% |
Percentage of statutory rate | 25% |
Enterprise income tax | 25% |
Exempted tax rate | 25% |
Hong Kong [Member] | |
Income Taxes (Details) [Line Items] | |
Profit amount (in Dollars) | $ 2,000 |
Percentage of income tax rate | 8.25% |
PRC [Member] | |
Income Taxes (Details) [Line Items] | |
Percentage of income tax rate | 10% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Loss Before Income Taxes ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | |
Income Taxes (Details) - Schedule of Loss Before Income Taxes [Line Items] | |||
Income taxes | ¥ (5,834) | $ (806) | ¥ (12,981) |
Non-PRC [Member] | |||
Income Taxes (Details) - Schedule of Loss Before Income Taxes [Line Items] | |||
Income taxes |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Income Tax Expenses ¥ in Thousands, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | |
Schedule of Income Tax Expenses [Abstract] | |||
Current income tax expense | ¥ 1,344 | $ 185 | ¥ 5 |
Deferred income tax expense | |||
Income tax expenses | ¥ 1,344 | $ 185 | ¥ 5 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Restricted Net Assets (Details) [Line Items] | |||
Annual least percentage | 10% | 10% | |
Annual net profit percentage | 50% | 50% | |
Paid-in capital | ¥ 383,823 | $ 52,932 | ¥ 383,980 |
PRC [Member] | |||
Restricted Net Assets (Details) [Line Items] | |||
Annual least percentage | 10% | 10% | |
Annual net profit percentage | 50% | 50% |
Loss Per Share (Details) - Sche
Loss Per Share (Details) - Schedule of Basic and Diluted Earnings Per Share ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2023 CNY (¥) ¥ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 CNY (¥) ¥ / shares shares | ||
Numerator: | ||||
Net loss | ¥ (7,178) | $ (991) | ¥ (12,986) | |
Less: net loss attributable to non-controlling interest | (3,711) | (512) | (2,029) | |
Net loss attributable to the Company’s ordinary shareholders | ¥ (3,467) | $ (479) | ¥ (10,957) | |
Denominator: | ||||
Weighted average number of ordinary shares outstanding used in calculating basic earnings per share (in Shares) | 50,416,667 | 50,416,667 | 50,000,000 | |
Basic earnings per share: (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.07) | $ (0.01) | ¥ (0.22) | [1] |
[1] The shares and per share data are presented on a retroactive basis to reflect the reorganization (Note 1). |
Loss Per Share (Details) - Sc_2
Loss Per Share (Details) - Schedule of Basic and Diluted Earnings Per Share (Parentheticals) | 6 Months Ended | ||||
Jun. 30, 2023 ¥ / shares shares | Jun. 30, 2023 $ / shares shares | Jun. 30, 2022 ¥ / shares shares | |||
Schedule of Basic and Diluted Earnings Per Share [Abstract] | |||||
Weighted average number of ordinary shares outstanding used in calculating diluted earnings per share | [1] | 50,416,667 | 50,416,667 | 50,000,000 | |
Diluted earnings per share (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (0.22) | $ (0.03) | ¥ (0.22) | [1] | |
[1] The shares and per share data are presented on a retroactive basis to reflect the reorganization (Note 1). |
Commitments and Contingencies_2
Commitments and Contingencies (Details) ¥ in Thousands, $ in Thousands | 4 Months Ended | 6 Months Ended | ||||
Nov. 30, 2021 CNY (¥) | Nov. 30, 2021 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | |
Commitments and Contingencies [Abstract] | ||||||
Contingency provision | ¥ 2,900 | $ 400 | ||||
Rent for an office | 2,000 | |||||
Contract amount | ¥ 900 | |||||
Relevant cash | ¥ 2,900 | $ 400 | ||||
Financial lease | ¥ 6,257 | $ 863 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Contractual Obligations ¥ in Thousands, $ in Thousands | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 05, 2023 USD ($) | Jun. 01, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |||
Commitments and Contingencies (Details) - Schedule of Contractual Obligations [Line Items] | ||||||||
Long-term bank borrowings | ¥ 10,000 | [1] | $ 1,379 | [1] | ¥ 10,000 | |||
Operating lease liabilities | [2] | 5,632 | 776 | |||||
Loan payable to WuYi Transportation Construction | [3] | 6,500 | 896 | |||||
Payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) | [4] | 1,281 | 177 | |||||
Total | ¥ 23,413 | 3,228 | ||||||
Payment due by period Less than 1 year [Member] | ||||||||
Commitments and Contingencies (Details) - Schedule of Contractual Obligations [Line Items] | ||||||||
Long-term bank borrowings | ||||||||
Operating lease liabilities | [2] | 1,271 | ||||||
Loan payable to WuYi Transportation Construction | [3] | 6,500 | ||||||
Payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) | [4] | 1,281 | ||||||
Total | $ 9,477 | |||||||
Payment due by period 1-3 years [Member] | ||||||||
Commitments and Contingencies (Details) - Schedule of Contractual Obligations [Line Items] | ||||||||
Long-term bank borrowings | [1] | 10,000 | ||||||
Operating lease liabilities | [2] | 1,837 | ||||||
Loan payable to WuYi Transportation Construction | ||||||||
Payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) | ||||||||
Total | 11,785 | |||||||
Payment due by period 3-5 years [Member] | ||||||||
Commitments and Contingencies (Details) - Schedule of Contractual Obligations [Line Items] | ||||||||
Long-term bank borrowings | ||||||||
Operating lease liabilities | [2] | 1,967 | ||||||
Loan payable to WuYi Transportation Construction | ||||||||
Payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) | ||||||||
Total | $ 1,991 | |||||||
Payment due by period More than 5 years [Member] | ||||||||
Commitments and Contingencies (Details) - Schedule of Contractual Obligations [Line Items] | ||||||||
Long-term bank borrowings | ||||||||
Operating lease liabilities | [2] | 557 | ||||||
Loan payable to WuYi Transportation Construction | ||||||||
Payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) | ||||||||
Total | $ 1,013 | |||||||
[1] Youxu Zibo’s commitment for long-term bank borrowings as of June 30, 2023 is discussed in Note 13 BANK BORROWINGS. Our commitment for minimum lease payments under the remaining operating leases as of June 30, 2023, 2022 is discussed in Note 15 LEASES. ZJ Youguan’s commitment for loan payable to WuYi Transportation Construction as of June 30, 2023 is discussed in Note 16 LOAN PAYABLES and Note 23 SUBSEQUENT EVENTS. AHYS’s commitment for the payables to Ningbo Meishan Bonded Port Zone Chenhui Investment Partnership Enterprise (Limited Partnership) as of June 30, 2023 is discussed in Note 23 SUBSEQUENT EVENTS. |
Subsequent Events (Details)
Subsequent Events (Details) ¥ in Thousands | 1 Months Ended | |||||||||||||
Aug. 07, 2023 CNY (¥) | Aug. 07, 2023 USD ($) | Jul. 14, 2023 CNY (¥) | Jul. 14, 2023 USD ($) | Jul. 28, 2023 CNY (¥) | Jul. 28, 2023 USD ($) | May 30, 2023 CNY (¥) | May 30, 2023 USD ($) | Mar. 23, 2023 CNY (¥) | Mar. 23, 2023 USD ($) | Sep. 11, 2023 CNY (¥) | Sep. 11, 2023 USD ($) | Jun. 13, 2023 CNY (¥) | Jun. 13, 2023 USD ($) | |
China Construction Bank [Member] | Subsequent Event [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Loan borrowed | ¥ 2,000 | $ 300,000 | ||||||||||||
Annual interest rate | 3.95% | 3.95% | ||||||||||||
AHYS [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Transfer fee and arbitration fee | ¥ 1,281 | $ 177,000 | ||||||||||||
ZJ Youguan [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Transportation construction amount | ¥ 6,500 | $ 896,000 | ||||||||||||
Youpin Automobile Service (Shandong) Co., Ltd. (“Youpin SD”) [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Liquidated damages | ¥ 2,746 | $ 379,000 | ||||||||||||
Youpin Automobile Service (Shandong) Co., Ltd. (“Youpin SD”) [Member] | Subsequent Event [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Loan borrowed | ¥ 500 | $ 70,000 | ||||||||||||
Youpin Automobile Service (Shandong) Co., Ltd. (“Youpin SD”) [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Annual interest rate | 15.12% | 15.12% | ||||||||||||
Youpin Automobile Service (Shandong) Co., Ltd. (“Youpin SD”) [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Annual interest rate | 9.90% | 9.90% | ||||||||||||
Shanghai Youpinsuoer New Energy Technology Co., Ltd. (“Shanghai Youpinsuoer”) [Member] | Subsequent Event [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Penalty of contract | ¥ 200 | $ 27,600 | ||||||||||||
Shanghai Youpinsuoer New Energy Technology Co., Ltd. (“Shanghai Youpinsuoer”) [Member] | Forecast [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Deposit for automobile exhibition | ¥ 170 | $ 23,400 | ||||||||||||
Shanghai Pudong Development Bank Co., Ltd [Member] | Subsequent Event [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Loan borrowed | ¥ 3,000 | $ 400,000 | ||||||||||||
Annual interest rate | 3.70% | 3.70% |