| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2
— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation The
accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted
in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange
Commission (“SEC”). Principles
of Consolidation The
consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries. All transactions
and balances among the Company and its subsidiaries have been eliminated upon consolidation. All
intercompany transactions and balances have been eliminated upon consolidation. Use
of Estimates The
preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities on the date of the consolidated
financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from
those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes
in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various
other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values
of assets and liabilities. Estimates are used when accounting for items and matters including, but not limited to, determinations of
the useful lives and valuation of long-lived assets, estimates of allowances for doubtful accounts, valuation of deferred tax assets,
and other provisions and contingencies. Fair
value of financial instruments The
Company’s financial instruments are accounted for at fair value on a recurring basis. Fair value is defined as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The three levels of the fair value hierarchy are described below:
Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
Level 3 — inputs to the valuation
methodology are unobservable and significant to the fair value. Financial
instruments of the Company primarily comprised current assets and current liabilities including cash and cash equivalents, restricted
cash, accounts receivable, short-term borrowings, accounts payable, insurance premium payables, other payables, and due to related parties.
The Company’s financial instruments approximate their fair values because of the short-term nature of these instruments. Warrants
were measured at fair value using unobservable inputs and categorized in Level 3 of the fair value hierarchy (Note 10). Convenience
translation Translations
of balances in the Group’s consolidated balance sheets, consolidated statements of comprehensive income (loss) and consolidated
statements of cash flows from RMB into US$ as of and for year ended June 30, 2024 are solely for the convenience of the readers
and were calculated at the rate of US$1.00=RMB 7.2672, representing the noon buying rate set forth in the H.10 statistical release
of the U.S. Federal Reserve Board on June 28, 2024. No representation is made that the RMB amounts could have been, or could
be, converted, realized or settled into US$ at that rate on June 30, 2024 or at any other rate. Cash
and Cash Equivalents Cash
and cash equivalents consist of cash on hand, bank deposits, as well as highly liquid investments with original maturities less than
three months, which are unrestricted as to withdrawal or use. Restricted
Cash In
its capacity as an insurance broker, Sunshine Insurance Brokers collects “premiums” (unremitted insurance premiums) from
certain insureds and remits the “premiums” to the appropriate insurance companies. Unremitted insurance premiums are held
in custody until disbursed by Sunshine Insurance Brokers. The Company reports such amounts as current restricted cash in the consolidated
balance sheets. In
addition, as of June 30, 2023, the restricted cash was also comprised of RMB 990,000 due to the lawsuit that filed by Wuhan Wubao Technology
Co., Ltd. on May 9, 2023 against Sunshine Insurance Brokers as a result of disputes in copyrights. Both parties subsequently reached
an amicable settlement on September 11, 2023 and the court released the restriction on the cash on September 12, 2023. Restricted
cash, noncurrent represented guarantee deposits are required by China Banking and Insurance Regulatory Commission (“CBIRC”)
in order to protect insurance premium appropriation by insurance broker. Accounts
Receivable, Net Accounts receivable are recorded
at the gross amount less an allowance for any uncollectible accounts and do not bear interest. Accounts receivable represented brokerage
fees receivable from insurer carriers. On
July 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified
retrospective transition method. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology,
which will result in more timely recognition of credit losses. Upon adoption, the Company changed the impairment model to utilize a forward-looking
current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized
cost and receivables resulting from the application of ASC 606, including contract assets. The adoption of the guidance resulted
in an increase of RMB 8,821,129 in the allowance for credit losses for accounts receivable on July 1, 2023. Prior to the Company’s
adoption of ASU 2016-13, the Company applied ASC 310, Receivables (“ASC 310”) to recognize and measure accounts
receivable. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends
and aging of receivables. Based on our credit term granted to insurance carriers, accounts older than 60 days are considered past
due. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions
to make adjustments in the allowance when necessary. Account balances are charged off against the allowance in the event that the insurance
carriers file for bankruptcy or liquidation with the local court in China under which circumstance the potential for recovery is considered
remote. As of June 30, 2023, allowance of RMB 1,852,816 was recorded against accounts receivable, respectively. The
Company uses the roll-rate method to measure the expected credit losses of accounts receivable. The Company assesses collectability by
reviewing accounts receivable on aging schedules. In determining the amount of the allowance for credit losses, the Company considers
historical collectability based on past due status, the age of the balances, current economic conditions, reasonable and supportable
forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. Delinquent
account balances are written-off against the allowance for expected credit loss after management has determined that the likelihood of
collection is not probable. The estimated credit losses charged to the allowance is classified as “general and administrative expenses”
in the consolidated statements of operations and comprehensive income (loss). For the year ended June 30, 2024, the Company provided
expected credit losses of RMB 4,031,265 against accounts receivable. Deferred
offering cost In
the event of offering of equity securities, incremental costs that otherwise would not have been incurred are deferred and capitalized
in the balance sheet as deferred offering costs which will be later deducted against additional paid-in capital upon completion of offering
of equity securities. Property
and Equipment, Net Property
and equipment primarily consist of office equipment and leasehold improvements, which are stated at cost less accumulated depreciation
less any provision required for impairment in value. Depreciation is computed using the straight-line method with residual value rate
of 5% based on the estimated useful lives of three Costs
of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation
of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statement
of income. Intangible
Assets, Net The
Company capitalizes certain software development costs related to the management general underwriter services during the application
development stage. The costs related to preliminary project activities and post-implementation activities are expensed as incurred. Capitalized
software development costs are depreciated on a straight-line basis over the estimated useful life of 5 years. Impairment
of Long-lived Assets The
Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an
asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset
to the future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment
recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. No impairment of
long-lived assets was recognized for the fiscal years ended June 30, 2022, 2023 and 2024. Operating
Leases Zhibao
China Group leases its offices, which are classified as operating leases in accordance with Topic 842. Operating leases are required
to record in the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments.
The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or
existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as
of the adoption date, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company elected
the short-term lease exemption as the lease terms are 12 months or less. At
the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing
rate for the same term as the underlying lease. The
right-of-use asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial
direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All right-of-use assets are reviewed
for impairment. There was no impairment for right-of-use lease assets as of June 30, 2023 and 2024. Insurance
Premium Payables Insurance premium payables are
insurance premiums collected on behalf of insurer carriers but not yet remitted as of the balance sheet dates. Revenue
Recognition In
accordance with ASC 606, revenue is recognized when the control of the promised goods or services is transferred to the customers,
and the performance obligations under the contract have been satisfied, in an amount that reflects the consideration expected to be entitled
to in exchange for those goods or services (excluding sales taxes collected on behalf of government authorities). The
Company determines revenue recognition through the following steps: (1) identify the contract(s) with a customer, (2) identify
the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the
performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The
Company primarily generated revenues from contracts with customers: Insurance
brokerage services The
Company offers digital insurance brokerage services to end customers/the insured for placing insurance policies, and the Company
earns insurance brokerage commission from insurance carriers upon completing insurance brokerage services. The commission fees are calculated
on a predetermined percentage of insurance premium of each insurance policy. The insurance brokerage services are considered as a single
performance obligation, as the insurer carriers cannot benefit until the Company sells an insurance policy. Commission fees are recognized
when the Company completes the insurance brokerage services, at which point the Company successfully places an insurance policy for the
end customers/the insured. The
Company recognizes insurance brokerage commissions net of return allowances. End customers/the insured are generally entitled to return
insurance policies at any time under no conditions. Significant judgement is required to estimate return allowances. The Company reasonably
estimates the possibility of return based on the historical experience, changes in judgments on these assumptions and estimates could
materially impact the amount of net revenues recognized. During the fiscal years ended June 30, 2022, 2023 and 2024, the Company
did not record return allowance because the Company historically incurred minimal returns from end customers/the insured and the Company
did not expect a significant reversal in the amount of cumulative revenue. Management
general underwriter (“MGU”) services On
behalf of the insurance carriers, the Company offers MGU services to end customers/the insured who pay insurance premiums to insurance
carriers. The insurance carriers authorize the Company to assist them in certain underwriting, claims and risk control services. The
Company earns MGU service fees from insurance carriers. MGU service fees are calculated on a predetermined percentage of insurance premium
of each insurance policy. The
Company identifies two performance obligations in the MGU services which are comprised of i) underwriting services, the revenue of which
are recognized at a point when the Company completes the underwriting services, and ii) claims and risk control services, the revenue
of which are recognized ratably over the terms of insurance policies, generally one year. The Company used cost plus expected margin
method to estimate and allocate the transaction prices between both performance obligations. Contract
balances The
Company classifies its right to consideration in exchange for services transferred to a customer as either a receivable or a contract
asset. A receivable is a right to consideration that is unconditional as compared to a contract asset which is a right to consideration
that is conditional upon factors other than the passage of time. The Company recognizes accounts receivable in its consolidated balance
sheets when it performs a service in advance of receiving consideration and it has the unconditional right to receive consideration.
A contract asset is recorded when the Company has transferred services to the customer before payment is received or is due, and the
Company’s right to consideration is conditional on future performance or other factors in the contract. As of June 30, 2023
and 2024, the Company did not record contract assets. The
Company capitalizes incremental costs incurred to fulfill contracts that (i) relate directly to the contract, (ii) are expected
to generate resources that will be used to satisfy the performance obligation under the contract, and (iii) are expected to be recovered
through revenue generated under the contract. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period
in which such losses become probable based on the current contract estimates. As of June 30, 2023 and 2024, the Company had no deferred
contract costs. Contract
liabilities are recognized if the Company receives consideration prior to satisfying the performance obligations, which include customer
advances and deferred revenue under service arrangements. Customer advances of RMB 6,000, RMB nil nil Practical
expedients Payment
terms and conditions vary by contract type; however, the Company’s terms generally include a requirement of payment within a period
between 30 to 60 days after reconciliation of insurance premiums with insurer companies if not paid in advance. The Company has
elected the practical expedient to not assess whether a significant financing component exists if the period between when we transfer
a promised good or service to a customer and when the customer pays for that good or service is one year or less. Additionally,
the Company has applied the following practical expedients: 1) not to disclose the transaction price allocated to unsatisfied or partially
unsatisfied performance obligations that are part of a contract that has an original expected duration of one year or less, and 2) to
not capitalize incremental costs of obtaining a contract if the amortization would be less than 12 months. Disaggregation
of revenue For
the fiscal years ended June 30, 2022, 2023 and 2024, substantially all of the Company’s revenue was generated in the
PRC. The Company disaggregate revenue into two revenue streams as the following table:
For the Years Ended June 30,
2022 2023 2024
RMB RMB RMB
Insurance brokerage service fees 84,342,916 119,765,046 174,056,644
MGU service fees 24,272,566 22,814,079 10,198,113
Less: business taxes and surcharges (390,678 ) (476,291 ) (585,431 )
Total revenues 108,224,804 142,102,834 183,669,326 The
Company disaggregates revenue by transferal of services as the following table: For the Years Ended June 30, 2022 2023 2024 RMB RMB RMB Services transferred over time 3,231,470 2,208,203 2,226,771 Services transferred at a point in time 105,384,012 140,370,922 182,027,986 Less: business taxes and surcharges (390,678 ) (476,291 ) (585,431 ) Total revenues 108,224,804 142,102,834 183,669,326 Cost
of Revenues Cost
of revenue consists primarily of insurance policy acquisition costs, which are service fees paid to various channels for successful sales
of insurance policies and labor cost. These costs are charged to the consolidated statements of operations and comprehensive income (loss)
as incurred. Selling
and marketing expenses Selling
and marketing expenses consist primarily of payroll and related expenses for employees involved in selling and marketing activities,
rental, brokerage service related promotion and consulting service fee and other expenses. General
and administrative expenses General
and administrative expenses primarily consist of employee related expenses for administrative functions, costs associated with these
functions including facilities and equipment depreciation expenses, share base compensation expense, rental and other general corporate
related expenses. Research
and development expenses Research
and development expenses primarily consist of employee related expenses for research and development functions, and outsourced research
service expenses. Value
Added Taxes The
Company’s PRC subsidiaries are subject to value-added taxes (“VAT”) at a rate of 6% on their services a, less any deductible
VAT the Company’s PRC subsidiaries have already paid or borne. They are also subject to surcharges on VAT payments in accordance
with PRC law. Income
Taxes The
Company accounts for income taxes in accordance with the U.S. GAAP for income taxes. Under the asset and liability method as required
by this accounting standard, the recognition of deferred income tax liabilities and assets for the expected future tax consequences of
temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision for income taxes
consists of taxes currently due plus deferred taxes. The
charge for taxation is based on the results for the year as adjusted for items which are non-assessable or disallowed. It is calculated
using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred
tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the
carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis. Deferred tax assets
are recognized to the extent that it is more likely than not these items will be utilized against taxable income in the future. Deferred
tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred
tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity. 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. Current income taxes are provided for in accordance with the laws of the relevant taxing
authorities. An
uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained
in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that
is greater than 50% likely of being realized on examination. Penalties and interest incurred related to underpayment of income tax are
classified as income tax expense in the period incurred. As of June 30, 2024, income tax returns for the tax years ended December 31,
2019 through December 31, 2023 remain open for statutory examination. Share-based
compensation The
Company grants share options and restricted shares to its management and employees. The Company measures the cost of the share options
and restricted shares based on the grant date fair value of the awards and recognizes compensation cost over the vesting period, which
is generally the requisite service period as required by the option agreement. When no future services are required to be performed by
the employee in exchange for an award of equity instruments, the cost of the award is expensed on the grant date. The Company elects
to recognize forfeitures when they occur. The
Company utilizes the binomial option pricing model to determine the fair value of share options, and utilizes the discounted cash flow
method to determine the fair value of restricted share at the grant date considering the dilutive effect of restricted share. Government
grants Government grants include cash subsidies as well
as other subsidies receivable from various government agencies by the subsidiaries of the Company. Government grants are recognized as
other income when all conditions attached to the grants are fulfilled and recorded in the consolidated statements of operations and comprehensive
income (loss). As of June 30, 2023 and 2024, the Company had government grants receivable of RMB 1,800,000 and RMB 1,800,000, respectively.
The government grants is still in process of administrative application, and the Company expected to collect the balance in the twelve
months ending June 30, 2025. Earnings
(loss) per Share In
accordance with ASC 260, Earnings Per Share, basic net earnings (loss) per share is computed by dividing net income (loss)
attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net
income (loss) is allocated between ordinary shares and other participating securities based on dividends declared (or accumulated) and
participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. Diluted
net earnings (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders by the weighted average
number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary share equivalents are excluded from
the computation in income (loss) periods should their effects be anti-dilutive. Commitments
and Contingencies Certain
conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which
will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess
such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related
to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s
legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount
of relief sought or expected to be sought therein. If
the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability
can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment
indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated,
then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would
be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature
of the guarantee would be disclosed. Segment
Reporting ASC 280,
Segment Reporting, establishes standards for companies to report in their financial statements information about operating segments,
products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise engaging in
businesses activities for which separate financial information is available that is regularly evaluated by the Company’s chief
operating decision makers in deciding how to allocate resources and assess performance. The Company’s chief operating decision
maker (“CODM”) has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross
profit and operating profit at a consolidated level only. The Company does not distinguish between markets for the purpose of making
decisions about resources allocation and performance assessment. Therefore, the Company has only one operating segment and one reportable
segment. Concentration
and Credit Risk
1) Credit
risk Assets
that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The
maximum exposure of such assets to credit risk is their carrying amount as at the balance sheet dates. As of June 30, 2023 and 2024,
RMB 9,873,678 and RMB 2,401,495 (US$ 330,457) were deposited in financial institutions in the PRC, and each bank accounts is insured
by the government authority with the maximum limit of RMB 500,000. To limit exposure to credit risk relating to deposits, the Company
primarily place cash and cash equivalent deposits with large financial institutions in China which management believes are of high credit
quality and the Company also continually monitors their credit worthiness. The
risk with respect to accounts receivable and amounts due from related parties is mitigated by credit evaluations the Company performs
on its customers and its ongoing monitoring processes of outstanding balances. The
Company’s operations are carried out in China. Accordingly, the Company’s business, financial condition and results of operations
may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy.
In addition, the Company’s business may be influenced by changes in governmental policies with respect to laws and regulations,
anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation among other factors.
2) Foreign
currency risk Substantially
all of the Company’s operating activities that were conducted through the subsidiaries in China and related assets and liabilities
are denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either
through the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by
PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application
form together with suppliers’ invoices and signed contracts. The value of RMB is subject to changes in central government policies
and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market.
3) Concentration
risks Accounts
receivable are typically unsecured and derived from goods sold and services rendered to customers that are located primarily in China,
thereby exposed to credit risk. The risk is mitigated by the Company’s assessment of customers’ creditworthiness and its
ongoing monitoring of outstanding balances. The Company has a concentration of its receivables and revenues with specific customers. As
of June 30, 2023, two customers accounted for 23% and 12% of accounts receivable, respectively. As of June 30, 2024, four customers accounted
for 20%, 17%, 11% and 11% of accounts receivable, respectively. For
the fiscal year ended June 30, 2022, one customer accounted for 14% of revenues. For the fiscal year ended June 30, 2023, one customer
accounted for 12% of revenues. For the fiscal year ended June 30, 2024, one customer accounted for 13% of revenues. As of June 30, 2023,
one vendor accounted for 48% of accounts payable. As of June 30, 2024, two vendors accounted for 27% and 14% of accounts payable, respectively. For the fiscal year ended
June 30, 2022, one vendor accounted for 19% of cost of revenues. For the fiscal year ended June 30, 2023, three vendors accounted
for 25%, 13% and 11% of cost of revenues, respectively. For the fiscal year ended June 30, 2024, one vendor accounted for 11% of cost
of revenues.
4) Other
risks The
Company’s business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters,
extreme weather conditions, health epidemics and other catastrophic incidents, such as the COVID-19 outbreak and spread, which could
significantly disrupt the Company’s operations. Recently
Issued Accounting Standards The
Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012
(the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the
enactment of the JOBS Act until such time as those standards apply to private companies. As a result, the Company’s operating results
and financial statements may not be comparable to the operating results and financial statements of other companies who have adopted
the new or revised accounting standards. In
December 2023, the FASB issued ASU 2023-09, which is an update to Topic 740, Income Taxes. The amendments in this update
related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring
(1) adding disclosures of pretax income (or loss) and income tax expense (or benefit) to be consistent with U.S. Securities
and Exchange Commission (the “SEC”) Regulation S-X 210.4-08(h), Rules of General Application — General
Notes to Financial Statements: Income Tax Expense, and (2) removing disclosures that no longer are considered cost beneficial or
relevant. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15,
2024. For entities other than public busine |
