Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | eHi Car Services Ltd |
Entity Central Index Key | 1,517,492 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Parent company | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 139,917,575 |
Class A Common Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 74,279,018 |
Class A Common Shares represented by ADS | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,027,288 |
ADS | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 513,644 |
Class B Common Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 65,638,557 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | |
Current assets: | ||||
Cash and cash equivalents | ¥ 671,350,459 | $ 103,184,676 | ¥ 529,518,517 | |
Restricted cash | 612,121,936 | 94,081,419 | 257,059,302 | |
Accounts receivable, net of allowance for doubtful accounts of RMB9,159,321 and RMB14,447,724 as of December 31, 2016 and 2017, respectively | 362,899,878 | 55,776,690 | 213,011,929 | |
Receivables from a related party | 83,323,718 | 12,806,621 | 1,755,889 | |
Prepaid expenses and other current assets | 1,505,857,012 | 231,445,985 | 727,787,345 | |
Short-term loans receivable | 50,000,000 | 7,684,859 | 50,000,000 | |
Vehicles held for sale | 78,904,246 | 12,127,361 | 160,732,289 | |
Deferred tax assets, current | 0 | 0 | 1,839,973 | |
Total current assets | 3,364,457,249 | 517,107,611 | 1,941,705,244 | |
Long-term investment | 10,800,000 | 1,659,930 | 0 | |
Property and equipment, net | 7,057,045,317 | 1,084,648,005 | 5,723,569,175 | |
Intangible assets | 66,505,752 | 10,221,747 | 64,101,470 | |
Vehicle purchase deposits | 367,839,691 | 56,535,925 | 420,922,908 | |
Deferred tax assets, non-current | 0 | [1] | 0 | 649,675 |
Other non-current assets | 61,814,009 | 9,500,639 | 10,010,628 | |
Total assets | 10,928,462,018 | 1,679,673,857 | 8,160,959,100 | |
Current liabilities: | ||||
Accounts payable | 617,870,011 | 94,964,882 | 179,877,847 | |
Payables due to a related party | 210,833 | 32,404 | 16,083,610 | |
Accrued expenses and other current liabilities | 433,886,742 | 66,687,172 | 268,491,387 | |
Income tax payable | 18,180,848 | 2,794,345 | 5,436,989 | |
Short-term debt due to third parties | 2,557,445,857 | 393,072,231 | 926,219,333 | |
Short-term debt due to a related party | 100,000,000 | 15,369,719 | 0 | |
Total current liabilities | 3,727,594,291 | 572,920,753 | 1,396,109,166 | |
Long-term debt due to third parties | 2,957,056,474 | 454,491,258 | 2,667,822,989 | |
Long-term debt due to a related party | 0 | 0 | 100,000,000 | |
Deferred tax liabilities, non-current | 27,638,307 | [1] | 4,247,930 | 1,061,542 |
Other non-current liabilities | 9,626,177 | 1,479,516 | 4,835,862 | |
Total liabilities | 6,721,915,249 | 1,033,139,457 | 4,169,829,559 | |
Commitments and contingencies (Note 20) | ||||
Shareholders' equity: | ||||
Common shares, US$0.001 par value, 500,000,000 and 500,000,000 (including 407,328,619 Class A and 92,671,381 Class B) shares authorized; 138,860,287 (including 67,547,921 Class A and 71,312,366 Class B) and 138,890,287 (including 73,251,730 Class A and 65,638,557 Class B) shares issued and outstanding as of December 31, 2016 and December 31, 2017, respectively | 878,663 | 135,048 | 878,463 | |
Additional paid-in capital | 4,489,246,326 | 689,984,527 | 4,474,702,198 | |
Accumulated other comprehensive income | 121,858,122 | 18,729,250 | 43,201,465 | |
Accumulated deficit | (405,436,342) | (62,314,425) | (527,652,585) | |
Total shareholders' equity | 4,206,546,769 | 646,534,400 | 3,991,129,541 | |
Total liabilities and shareholders' equity | ¥ 10,928,462,018 | $ 1,679,673,857 | ¥ 8,160,959,100 | |
[1] | The Company has adopted ASU 2015-17 prospectively since January 1, 2017. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017$ / shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016$ / shares | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Allowance for doubtful accounts | ¥ | ¥ 14,447,724 | ¥ 9,159,321 | ¥ 7,611,244 | ¥ 5,969,648 | ||
Common shares, par value | $ / shares | $ 0.001 | $ 0.001 | ||||
Common shares, shares authorized | 500,000,000 | 500,000,000 | ||||
Common shares, shares issued | 138,890,287 | 138,860,287 | ||||
Common shares, shares outstanding | 138,890,287 | 138,860,287 | ||||
Class A Common Shares | ||||||
Common shares, shares authorized | 407,328,619 | 407,328,619 | ||||
Common shares, shares issued | 73,251,730 | 67,547,921 | ||||
Common shares, shares outstanding | 73,251,730 | 67,547,921 | ||||
Class B Common Shares | ||||||
Common shares, shares authorized | 92,671,381 | 92,671,381 | ||||
Common shares, shares issued | 65,638,557 | 71,312,366 | ||||
Common shares, shares outstanding | 65,638,557 | 71,312,366 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | ||
Net revenues: | |||||
Total net revenues | ¥ 2,739,522,188 | $ 421,056,851 | ¥ 2,108,944,425 | ¥ 1,450,629,752 | |
Cost of revenues | (1,880,348,975) | (289,004,346) | (1,515,281,510) | (1,137,978,490) | |
Gross profit | 859,173,213 | 132,052,505 | 593,662,915 | 312,651,262 | |
Selling and marketing expenses: | |||||
Third party | (122,768,279) | (18,869,139) | (67,788,291) | (48,868,854) | |
Related party | (16,263,674) | (2,499,681) | (29,399,234) | (16,190,063) | |
Total selling and marketing expenses | (139,031,953) | (21,368,820) | (97,187,525) | (65,058,917) | |
General and administrative expenses | (270,670,181) | (41,601,245) | (251,938,077) | (183,548,522) | |
Other operating income | 3,762,667 | 578,311 | 10,310,089 | 10,763,962 | |
Total operating expenses | (405,939,467) | (62,391,754) | (338,815,513) | (237,843,477) | |
Income from operations | 453,233,746 | 69,660,751 | 254,847,402 | 74,807,785 | |
Interest income | 14,962,132 | 2,299,638 | 8,413,945 | 2,652,636 | |
Interest expense: | |||||
Third party | (273,588,999) | (42,049,859) | (206,425,222) | (109,566,064) | |
Related party | (6,995,833) | (1,075,240) | (18,534,167) | (14,202,500) | |
Total interest expense | (280,584,832) | (43,125,099) | (224,959,389) | (123,768,564) | |
Gain from waiver of warrants | 0 | 0 | 0 | 16,869,935 | |
Gain from sale of cost method investment | 0 | 0 | 0 | 803,059,728 | |
Other income, net | 1,957,019 | 300,788 | 1,444,129 | 10,205,275 | |
Early extinguishment of debt costs | (19,976,776) | (3,070,374) | 0 | 0 | |
Income before income taxes | 169,591,289 | 26,065,704 | 39,746,087 | 783,826,795 | |
Provision for income taxes | (47,375,046) | (7,281,411) | (6,610,971) | (87,487,990) | |
Net income | 122,216,243 | 18,784,293 | 33,135,116 | 696,338,805 | |
Change in cumulative foreign currency translation adjustment, net of tax of nil | 78,656,657 | 12,089,307 | (31,353,357) | 73,410,193 | |
Comprehensive income | ¥ 200,872,900 | $ 30,873,600 | ¥ 1,781,759 | ¥ 769,748,998 | |
Weighted average number of common shares used in computing net income per share | |||||
Basic | shares | 138,794,624 | 138,794,624 | 137,621,702 | 126,758,363 | |
Diluted | shares | 139,593,917 | 139,593,917 | 138,552,031 | 128,403,877 | |
Net income (loss) per common share attributable to common shareholders | |||||
Basic | (per share) | ¥ 0.88 | $ 0.14 | ¥ 0.24 | ¥ 5.49 | |
Diluted | (per share) | 0.88 | 0.13 | 0.24 | 5.42 | |
Net income per ADS | |||||
Basic | (per share) | [1] | 1.76 | 0.27 | 0.48 | 10.99 |
Diluted | (per share) | [1] | ¥ 1.75 | $ 0.27 | ¥ 0.48 | ¥ 10.85 |
Car rentals | |||||
Net revenues: | |||||
Total net revenues | ¥ 2,196,455,811 | $ 337,589,077 | ¥ 1,663,546,502 | ¥ 1,100,578,473 | |
Car services | |||||
Net revenues: | |||||
Total net revenues | ¥ 543,066,377 | $ 83,467,774 | ¥ 445,397,923 | ¥ 350,051,279 | |
[1] | Each ADS represents two Class A common shares |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in cumulative foreign currency translation adjustment, tax portion | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | CNY (¥)shares | USD ($)shares | Class A Common SharesCNY (¥)shares | Common SharesCNY (¥)shares | Common SharesClass A Common SharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Additional paid-in capitalClass A Common SharesCNY (¥) | Accumulated other comprehensive incomeCNY (¥) | Accumulated other comprehensive incomeClass A Common SharesCNY (¥) | Accumulated deficitsCNY (¥) | Accumulated deficitsClass A Common SharesCNY (¥) |
Balance at Dec. 31, 2014 | ¥ 2,366,391,673 | ¥ 727,825 | ¥ 3,621,645,725 | ¥ 1,144,629 | ¥ (1,257,126,506) | ||||||
Balance (in shares) at Dec. 31, 2014 | shares | 114,379,243 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Share-based compensation | 13,983,246 | 13,983,246 | |||||||||
Exercises of share options | 5,089,020 | ¥ 2,617 | 5,086,403 | ||||||||
Exercises of share options (in shares) | shares | 416,246 | ||||||||||
Issuance of Class A common shares in private placement, net of issuance costs | ¥ 792,860,341 | ¥ 136,559 | ¥ 792,723,782 | ||||||||
Issuance of Class A common shares in private placement, net of issuance costs (in shares) | shares | 22,337,924 | ||||||||||
Net income | 696,338,805 | 696,338,805 | |||||||||
Foreign currency translation adjustments | 73,410,193 | 73,410,193 | |||||||||
Balance at Dec. 31, 2015 | 3,948,073,278 | ¥ 867,001 | 4,433,439,156 | 74,554,822 | (560,787,701) | ||||||
Balance (in shares) at Dec. 31, 2015 | shares | 137,133,413 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Share-based compensation | 16,040,947 | 16,040,947 | |||||||||
Exercises of share options | 25,233,557 | ¥ 11,462 | 25,222,095 | ||||||||
Exercises of share options (in shares) | shares | 1,726,874 | ||||||||||
Net income | 33,135,116 | 33,135,116 | |||||||||
Foreign currency translation adjustments | (31,353,357) | (31,353,357) | |||||||||
Balance at Dec. 31, 2016 | ¥ 3,991,129,541 | ¥ 878,463 | 4,474,702,198 | 43,201,465 | (527,652,585) | ||||||
Balance (in shares) at Dec. 31, 2016 | shares | 138,860,287 | 138,860,287 | 67,547,921 | 138,860,287 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Share-based compensation | ¥ 13,588,843 | 13,588,843 | |||||||||
Exercises of share options | ¥ 955,485 | ¥ 200 | 955,285 | ||||||||
Exercises of share options (in shares) | shares | 0 | 0 | 30,000 | ||||||||
Net income | ¥ 122,216,243 | $ 18,784,293 | 122,216,243 | ||||||||
Foreign currency translation adjustments | 78,656,657 | 78,656,657 | |||||||||
Balance at Dec. 31, 2017 | ¥ 4,206,546,769 | $ 646,534,400 | ¥ 878,663 | ¥ 4,489,246,326 | ¥ 121,858,122 | ¥ (405,436,342) | |||||
Balance (in shares) at Dec. 31, 2017 | shares | 138,890,287 | 138,890,287 | 73,251,730 | 138,890,287 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | ¥ 122,216,243 | $ 18,784,293 | ¥ 33,135,116 | ¥ 696,338,805 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for doubtful accounts | 5,288,403 | 812,813 | 1,548,077 | 1,641,596 |
Depreciation and amortization | 755,065,789 | 116,051,487 | 668,018,253 | 474,721,487 |
Amortization of debt issuance costs and discounts | 27,357,231 | 4,204,729 | 17,372,579 | 816,082 |
Share-based compensation | 13,588,843 | 2,088,567 | 16,040,947 | 13,983,246 |
Gain from waiver of warrants | 0 | 0 | 0 | (16,869,935) |
Gain from sale of cost method investment | 0 | 0 | 0 | (803,059,728) |
Deferred taxes | 29,066,413 | 4,467,426 | (2,489,648) | |
Foreign currency exchange (gain) loss, net | (47,372,152) | (7,280,966) | 11,608,634 | |
Early extinguishment cost | 19,976,776 | 3,070,374 | 0 | 0 |
Cost related to aborted offering | 3,923,420 | 603,019 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (155,176,352) | (23,850,169) | (35,008,430) | (69,327,865) |
Receivables due from a related party | (81,567,829) | (12,536,746) | 5,611,366 | (7,346,590) |
Prepaid expenses and other assets | (165,210,245) | (25,392,350) | (251,622,358) | (166,490,292) |
Income taxes payable | 12,743,859 | 1,958,695 | (84,281,714) | 81,996,755 |
Accounts payable | 24,613,565 | 3,783,036 | 8,750,324 | 2,449,643 |
Payables due to a related party | (15,872,777) | (2,439,601) | 5,329,696 | 10,082,871 |
Accrued expenses and other current liabilities | 171,224,002 | 26,316,647 | 26,731,063 | 77,754,819 |
Net cash provided by operating activities | 719,865,189 | 110,641,254 | 420,743,905 | 296,690,894 |
Cash flows from investing activities: | ||||
Purchase of property and equipment | (3,252,477,106) | (499,896,578) | (3,687,792,595) | (2,183,382,209) |
Purchase of intangible assets | (2,626,798) | (403,731) | (12,779,230) | (6,850,853) |
Proceeds from disposal of property and equipment | 1,057,279,427 | 162,500,873 | 410,717,362 | 241,754,708 |
Cash paid for cost method investment | (10,800,000) | (1,659,930) | ||
Proceeds from waiver of warrants | 18,409,199 | |||
Proceeds from sale of cost method investment, net of related transaction costs | 954,428,056 | |||
Cash paid relating to other investing activities | (2,090,288) | |||
Increase in restricted cash | (377,036,251) | (57,949,411) | (38,874,782) | (14,185,928) |
Cash paid for a business combination, net of cash acquired | (3,229,998) | |||
Cash paid for loans to a third party | (50,000,000) | |||
Net cash used in investing activities | (2,585,660,728) | (397,408,777) | (3,381,959,243) | (991,917,315) |
Cash flows from financing activities: | ||||
Proceeds from exercise of share options | 955,485 | 146,855 | 25,431,373 | 4,891,204 |
Proceeds from issuance of Class A common shares in private placement, net of issuance costs | 792,860,341 | |||
Proceeds from borrowings from third parties | 1,874,385,912 | 288,087,840 | 2,142,363,443 | 704,095,594 |
Proceeds from borrowings from a related party | 300,000,000 | |||
Repayment of borrowings to third parties | (1,441,476,300) | (221,550,851) | (1,166,755,309) | (741,253,447) |
Repayment of borrowings to a related party | (200,000,000) | |||
Payment for property and equipment beyond 3 months after purchase | (11,212,572) | (1,723,341) | ||
Proceeds from issuance of 2018 Senior Notes, net of issuance costs | 1,241,289,905 | |||
Payment for IPO issuance costs | (20,656,597) | |||
Payment of professional fees for issuance of 2018 Senior Notes | (2,740,945) | |||
Payment of professional fees for aborted offerings | (1,748,969) | (268,812) | ||
Repayment of Syndicated loan | (1,000,335,000) | (153,748,674) | 0 | 0 |
Proceeds from issuance of 2022 Senior Notes, net of issuance costs | 2,611,624,352 | 401,399,313 | ||
Net cash provided by financing activities | 2,032,192,908 | 312,342,330 | 798,298,562 | 2,281,227,000 |
Effect of exchange rate changes on cash and cash equivalents | (24,565,427) | (3,775,637) | 82,346,911 | 97,880,059 |
Net increase (decrease) in cash and cash equivalents | 141,831,942 | 21,799,170 | (2,080,569,865) | 1,683,880,638 |
Cash and cash equivalents-beginning of year | 529,518,517 | 81,385,506 | 2,610,088,382 | 926,207,744 |
Cash and cash equivalents-end of year | 671,350,459 | 103,184,676 | 529,518,517 | 2,610,088,382 |
Supplemental disclosure for cash flow information | ||||
Cash paid for interest | 173,464,046 | 26,660,936 | 206,010,610 | 115,018,836 |
Cash paid for income taxes | 5,564,773 | 855,290 | 93,382,333 | 5,491,235 |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Sales of property and equipment included in receivables | 350,629,000 | 53,890,691 | 127,915,314 | 20,366,352 |
Changes in vehicle purchase deposits | (53,083,217) | (8,158,741) | 204,195,008 | 42,543,272 |
Accounts payable for purchase of property, plant and equipment | 576,569,163 | 88,617,058 | 163,190,564 | 777,961,654 |
Accrued professional fees for issuance of 2018 Senior Notes | 2,740,945 | |||
Accrued professional fees for aborted offering | 2,174,451 | 334,207 | ||
Subscription receivables related to share option exercises | ¥ 197,816 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | On August 3, 2007, eHi Car Services Limited (the “Company”), formerly known as Prudent Choice Limited or eHi Auto Services Limited, was incorporated in the Cayman Islands by Ray Ruiping Zhang (the “Founder”). The Company, through its subsidiaries, provides car rentals and car services to corporate and individual customers in the People’s Republic of China (“PRC”). The Company and its subsidiaries began offering services in 2006 through Shanghai eHi Business Co., Ltd. (“eHi Business”), which was incorporated on January 11, 2006. The Company’s business initially focused on providing car services to premium corporate and institutional clients. In May 2008, the Company began to provide car rentals to individual customers. To further expand the Company’s internet and mobile services, the Company entered into a series of contractual arrangements in March 2014 with its PRC-incorporated variable interest entity (“VIE”) Shanghai eHi Information Technology Service Co., Ltd. (“eHi Information”) and its shareholders. eHi Information obtained a telecommunication business operating license (“ICP license”) from the relevant telecommunication authorities on September 24, 2014. eHi Information currently does not have any material operations. In January 2015, the Company entered into a series of contractual arrangements with its PRC-incorporated VIE Shanghai eHi Car Sharing Information Technology Co., Ltd. (“eHi Car Sharing”) and its shareholders. eHi Car Sharing is currently testing its new business initiative as an online platform for peer-to-peer car rental between private vehicle owners and individual customers. eHi Car Sharing is currently not yet in operation and the Company does not expect it to contribute a material portion of its net revenues and operations in the foreseeable future. As of December 31, 2017, the Company and its principal subsidiaries and VIEs are as follows: Percentage of Date of Place of Parent company and offshore holding companies eHi Car Services Limited (“Company”) Parent August 3, 2007 Caymans eHi Auto Services (Hong Kong) Holding Limited (“eHi Hong Kong”) 100% September 24, 2010 Hong Kong L&L Financial Leasing Holding Limited 100% October 17, 2013 Hong Kong Brave Passion Limited (“Brave Passion”) 100% May 26, 2015 British Virgin Islands Wholly owned subsidiaries Shuzhi Information Technology (Shanghai) Co., Ltd. (“Shuzhi”) 100% March 21, 2008 PRC Shanghai eHi Car Rental Co., Ltd. (“eHi Rental”) 100% March 10, 2008 PRC Beijing eHi Car Rental Co., Ltd. (subsidiary of eHi Rental) 100% August 20, 2008 PRC Chongqing eHi Car Rental Co., Ltd. (subsidiary of eHi Rental) 100% December 5, 2009 PRC Shanghai Smart Brand Auto Driving Services Co., Ltd (“Shanghai Smart Brand,” subsidiary of Shuzhi) 100% April 13, 2011 PRC eHi Auto Services (Jiangsu) Co., Ltd. (subsidiary of eHi Hong Kong) 100% December 23, 2011 PRC Shanghai eHi Chengshan Car Rental Co., Ltd. (subsidiary of eHi Rental) 100% August 16, 2012 PRC Shanghai Taihan Trading Co., Ltd. 100% November 10, 2013 PRC Shanghai Taihao Financial Leasing Co., Ltd. 100% January 7, 2014 PRC Shanghai Taide Financial Leasing Co., Ltd. 100% June 23, 2014 PRC eHi Car Rental Management Services (Shanghai) Co., Ltd (subsidiary of eHi Rental) 100% November 10, 2015 PRC Consolidated variable interest entities (“VIEs”) Shanghai eHi Information Technology Service Co., Ltd. (“eHi Information”) 100% March 13, 2014 PRC Shanghai eHi Car Sharing Information Technology Co., Ltd. (“eHi Car Sharing”) 100% January 12, 2015 PRC On November 18, 2014, the Company completed its initial public offering (“IPO”) and became listed on the New York Stock Exchange by issuing 10,000,000 12.00 120 8,333,332 6.00 50 77,999,069 6,096,842 On May 22, 2015, the Company entered into definitive securities purchase agreements with Tiger Fund and SRS Funds pursuant to which the Company agreed to issue a total of 22,337,924 6.00 12.00 134.0 4.3 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Company, its subsidiaries and VIEs are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company had negative working capital of RMB 363,137,042 at December 31, 2017 primarily due to the maturity of the 2018 Senior Notes in December 2018. The management believes that the Company's current cash position as of December 31, 2017, the cash expected to be generated through the disposal of the Company's vehicles subject to repurchase programs (note 2(l)), operations and funds available from borrowings under the bank facilities will be sufficient to meet the Company’s working capital and capital expenditure for at least the next twelve months from the date these financial statements were issued. As such, these financial statements are prepared under the going concern assumption which contemplates the realisation of assets and the liquidation of liabilities in the ordinary course of business. (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIEs for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. The VIEs for which the Company is the ultimate primary beneficiary, eHi Information and eHi Car Sharing, have insignificant operations; related balances and transactions are immaterial for all periods presented. All transactions and balances among the Company, its subsidiaries, and the VIEs have been eliminated in consolidation. (c) Use of estimates The preparation of financial statements in conformity 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 financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include the allowance for doubtful accounts, costs related to customer loyalty programs, useful lives of vehicles and other tangible or intangible assets, residual values of vehicles, impairment of intangibles and long-lived assets, certain accruals or contingent liabilities, valuation allowances for deferred tax assets, provisions for uncertain tax positions, valuation of share-based awards and forfeiture rates. Foreign currency and foreign currency translation The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of the PRC is the United States dollar (“US$”), while the functional currency of the PRC entities is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income as general and administrative expenses. Transaction gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature are treated in the same manner as translation adjustments and included in cumulative translation adjustments, which is a separate component of shareholders’ equity in the consolidated financial statements. Assets and liabilities of the Company and its subsidiaries incorporated outside of the PRC are translated into RMB at year-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the year. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income or loss in the consolidated statements of changes in shareholders’ equity. The rates of exchange for the U.S. dollar used for translation purposes were RMB 6.9370 6.5342 6.2284 6.6401 6.7547 The unaudited United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the reader. Unless the amounts were from transactions originally denominated in U.S. dollars or otherwise noted, all translations from RMB into U.S. dollars and from U.S. dollars to RMB for the convenience of the reader were calculated at the rate of US$1.00 = RMB 6.5063 (e) Concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents and accounts receivable. The Company deposits its cash and cash equivalents with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these banks are major financial institutions with high credit quality. When providing services, the Company generally requires individual customers to make advance payments, or a deposit from the corporate and institutional clients before services are rendered. Accounts receivable primarily represents those receivables derived in the ordinary course of business in relation to corporate and institutional clients. The Company offers payment terms in the range of 5 120 Except for Ctrip (Note 21), no single customer accounted for more than 10% of the Company’s consolidated accounts receivable as of December 31, 2016 and 2017, or for more than 10% of the Company’s consolidated net revenues in any of the periods presented. (f) Cash and cash equivalents Cash and cash equivalents consist of cash in banks, which are unrestricted as to withdrawal or use. (g) Restricted cash Restricted cash includes cash and cash equivalents that are not readily available for the Company’s normal disbursements. Restricted cash and cash equivalents are primarily related to cash deposits with banks and financial institutions required as part of the Company’s short-term borrowing arrangements (Note 9). Investments The Company’s investments include cost method investments and held to maturity investments. We use the cost method of accounting for equity investments that are not considered debt securities or equity securities that have readily determinable fair values and over which we have neither significant influence nor control through investments in common stock or in-substance common stock. Under the cost method, we carry the investment at cost and recognizes income to the extent of dividends received from the distribution of the equity investee’s post-acquisition profits. The investments that we intend and are able to hold to maturity are classified as held-to-maturity investments and are stated at amortized cost. We monitor our investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. Accounts receivable, net of allowance for doubtful accounts Accounts receivable mainly consist of amounts due from the Company’s corporate and institutional clients, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Company performs ongoing credit evaluation of its customers, and assesses the allowance for doubtful accounts based upon expected collection ability based on the age of the receivables and factors surrounding the credit risk of specific customers. (j) Short term loan receivable Short-term loan receivables consist of loans extended to third-parties and are recorded at amortized cost. The Company records interest on an accrual basis and recognizes it in "Interest income" as earned in accordance with the contractual terms of the loan agreement, to the extent that such amounts are expected to be collected. (k) Vehicles held for sale Vehicles held for sale consist of used vehicles subject to signed sales agreements awaiting completion of title transfer. When a vehicle is reclassified as held for sale and transferred from property, plant and equipment, it is not further depreciated and is stated at lower of cost and net realizable value. Cost is the net book value upon the reclassification of the vehicle. Net realizable value is the selling price in accordance with the sales agreement less the estimated costs to be incurred upon the completion of title transfer. As of December 31, 2017, the vehicles reclassified as held for sale are expected to complete title transfer within one year. Property and equipment, net Property and equipment is stated at cost, less accumulated depreciation and impairment. Initial cost is comprised of the purchase price, plus any costs directly attributable to bringing the property and equipment to the location and condition necessary for its intended use. Depreciation of property and equipment is calculated on a straight-line basis, after consideration of expected useful lives and estimated residual values. The Company begins depreciating vehicles when they are ready for their intended use. The estimated useful lives of these assets are generally as follows: Category Estimated useful lives Vehicles 1-4 years In-car equipment 3 years Office furniture and equipment 5 years Software 3 - 5 years Building 39 years Leasehold improvements Over the shorter of the lease term or the estimated useful life - 1-5 years Construction in progress represents offices under construction and newly acquired vehicles which are not yet been placed in service. Construction in progress is transferred to property and equipment and depreciation commences when an asset is ready for its intended use. Vehicles A vehicle is considered ready for its intended use generally when the license plate for the vehicle is obtained, the vehicle is insured, and when a GPS tracking device is installed. Expenditures for repairs and maintenance of vehicles are expensed as incurred. The Company expects to hold its vehicles generally for a period of approximately three to four years before their disposal, except for vehicles subject to repurchase programs, which have a holding period that typically ranges from 12 24 The Company monitors accounting estimates relating to vehicles on a quarterly basis, including the depreciation rates and estimated residual values. Changes made to estimates are reflected in vehicle-related depreciation expense on a prospective basis. In addition, depreciation expense associated with vehicles subject to repurchase programs is recorded based on the contractual repurchase prices and holding periods, and is adjusted if the repurchase conditions are not met. When a vehicle is reclassified as held for sale, it is not further depreciated and is accounted for as held for sale. Gain or loss on disposed vehicles or loss on vehicles held for sale is recognized as an adjustment to depreciation expense as part of cost of revenues. The Company recorded a net loss of RMB 5,055,620 1,848,313 24,241,209 (m) Intangible assets Intangible assets are substantially comprised of car rental operating licenses and vehicle license plates acquired from third parties and local administration authorities. Gross carrying value totaled RMB 64,101,470 66,505,752 The car rental operating licenses are originally assigned a fixed operating period, which can be extended upon expiration without significant additional cost. The Company also believes that there is no significant risk involved in the car rental operating license renewal process. Further, there are no legal, regulatory, or contractual provisions of which the Company is aware that may limit the useful life of such licenses. As such, the Company considers such car rental operating licenses to be indefinite-lived and carries them at cost less any subsequent impairment losses. Vehicle license plates do not expire and require no renewal. Therefore, they are similarly considered to be indefinite-lived and are carried at cost less any subsequent accumulated impairment losses. (n) Impairment of intangible assets and long-lived assets The Company evaluates intangible assets and long-lived assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. For long-lived assets, when these events occur, the Company evaluates impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. For indefinite lived assets, the impairment test consists of a comparison of the fair value with carrying value. If the carrying value of an intangible asset exceeds its fair value, which is generally determined using the income approach, market approach, or a combination thereof, an impairment loss is recognized. No impairment charges were recognized for the years ended December 31, 2015, 2016, and 2017. Deposits and advances from customers Customer deposits: The Company collects deposits from corporate and institutional clients upon entering into negotiated contracts, and such amount is refundable at the end of the contract period provided no contract violations are noted. For individual customers, the Company collects additional amounts from them upon return of the rental vehicle based on the estimated repair and other relevant costs. In situations where the contract is violated or damage is caused to the vehicle, customer deposits received are used to offset expenses incurred in the period such incidents occur, and the excess amount is returned to customers. The customer deposits are classified as accrued expenses and other current liabilities on the consolidated balance sheets. The Company records a loss in the consolidated statements of comprehensive income if expenses incurred for repair exceed customer deposit amounts. Advances from customers: Individual customers pay in advance prior to the rental vehicle pick-up. Payments received from customers are initially recorded as advances from customers and are recognized as revenues when revenue recognition criteria are met. (p) Revenue recognition Revenue from car rentals and car services are generally recognized over the rental period. Revenue from the sale of gasoline is recognized when the vehicle is returned and is based on the actual volume of gasoline consumed or a contracted fee paid by the customer. For car rentals, payments are generally collected from customers in advance, and are recorded as advances from customers in the consolidated balance sheets until the revenue recognition criteria are met. Customers who purchase car services are generally on credit terms, and the initial credit evaluation is conducted before credit is extended. Revenue is recognized when collectability is reasonably assured and all other revenue recognition criteria are met. Occasionally, the Company engages contracted service providers in offering car services to its customers where the Company currently does not provide such services in certain cities or such services exceed the Company’s existing capacity. The end customers sign service contracts directly with the Company in such arrangements and the Company is the party responsible for customers’ acceptance for services rendered. In case of customer disputes, the Company resolves customer complaints and is solely responsible for refunding customers their payments. Therefore, the Company is considered the primary obligor in transactions involving the use of contracted service providers. The Company also determines the service fee and bears the credit risk. As a result, the Company recognizes revenue under contracted service provider arrangements on a gross basis. In the accompanying consolidated statements of comprehensive income, revenue is presented net of business tax, VAT and other related surcharges. Costs of revenue associated with car rentals and car services have not been presented separately as the Company cannot reasonably and reliably estimate and allocate expenses to each of the revenue streams. Lease Obligations In accordance with ASC 840, Leases, leases for a lessee are classified at the inception date as either a capital lease or an operating lease. The Company assesses a lease to be a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property's estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. The capitalized lease obligation reflects the present value of future rental payments, discounted at the appropriate interest rates. The cost of the asset is amortized over the lease term. However, if ownership is transferred at the end of the lease term, the cost of the asset is amortized as set out under the property and equipment section of this note. Operating lease expenses are recognized on a straight-line basis over the applicable lease term. Net investment in direct financing leases For leases where the Company is the lessor, a transaction is accounted for as a direct financing lease if the transaction satisfies one of the four capital lease conditions as discussed under the capital lease obligations in note 2(q), the collectability of the minimum lease payments is reasonably predictable, and there are no important uncertainties surrounding the amount of unreimbursable costs yet to be incurred by the Company under the lease. The net investment in the direct financing leases consists of the minimum lease payments, net of executory costs and profits thereon, unguaranteed residual value, accruing to the benefit of the Company and initial direct costs less unearned income. Over the period of a lease, each lease payment received is allocated between the repayment of the net investment in the lease and financing lease income based on the effective interest method so as to produce a constant rate of return on the balance of the net investment in the lease. The net investment in the direct financing leases is classified as current or non-current assets in the balance sheets based on the duration of the remaining lease terms. The Company records revenue attributable to direct financing leases so as to produce a constant rate of return on the balance of the net investment in the lease. Total direct financing leases revenues were RMB 7,197,316 10,140,216 3,875,346 (s) Customer loyalty program The Company has a customer loyalty program where registered members earn points upon eligible purchases and such points can be redeemed for free rental periods, mileage upgrades, and other free gifts. The Company estimates the incremental costs associated with the Company’s future obligation to its customers, and records them as selling and marketing expense in the consolidated statements of comprehensive income. Unredeemed membership points are recorded in accrued expenses and other current liabilities in the consolidated balance sheets. The Company adjusts the liability associated with the customer loyalty program based on the Company’s estimate of future redemption of membership points prior to their expiration, which is three calendar years from the day the membership points are awarded. As of December 31, 2016 and 2017, the accrued liabilities associated with the customer loyalty program were RMB 7,185,774 9,048,815 Advertising costs The Company expenses advertising costs as incurred. Total advertising expenses were RMB 28,946,698 38,968,240 89,925,181 (u) Taxation Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and tax credits, if any. 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 in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in which temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of operations in the period of the enactment of the change. The Company has adopted ASU 2015-17 prospectively since January 1, 2017, deferred tax assets and liabilities are classified as non-current on the consolidated balance sheet. The Company 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 Company has considered 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 for a company operating in the car rental industry. The Company recognizes a tax benefit associated with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The Company’s liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The Company’s effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Company classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. (v) Government grants and subsidy income The Company receives government grants and subsidies in the PRC from various levels of local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the regions. These government subsidies are recorded as other operating income in the consolidated statement of comprehensive income in the period cash is received. For government grants that contain certain operating conditions, the amounts are recorded as liabilities when received, and are recognized in the consolidated statements of comprehensive income as a reduction of the related costs for which the grants are intended to compensate when the conditions are met. Government grants relating to property, plant and equipment are included in non-current liabilities as deferred government grants and are credited to the consolidated statements of comprehensive income as reductions to depreciation expense on a straight-line basis over the expected lives of the related assets. (w) Fair value measurements Fair value is 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 recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy 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. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, short-term loans receivable, accounts payable, advances from customers, certain accrued expenses and other current liabilities, and short-term and long-term debt. The carrying amounts of short-term financial instruments, excluding short-term debt, approximate their fair values due to the short-term maturity of these instruments. The carrying amounts of short-term debt as of December 31, 2016 and December 31, 2017 approximate their fair values as the interest rates they bear reflected the current quoted market yield for comparable debt (Level 2 inputs). The fair value of long-term borrowings is estimated based on quoted market rates as well as borrowing rates currently available for borrowings with a similar term, and the fair value of 2018 Senior Notes and 2022 Senior Notes are estimated based on the average of the bid and ask price as of December 31, 2016 and December 31, 2017 (Level 2 inputs). The fair values of long-term debts including long-term borrowings, 2018 Senior Notes and 2022 Senior Notes were RMB 3,214,860,166 4,770,908,702 As of December 31, 2016 As of December 31, 2017 Nominal Unpaid Aggregate Fair Value Nominal Unpaid Aggregate Fair Value Long-term borrowings, including current portion 1,747,583,173 1,755,993,820 831,202,361 833,969,309 2018 Senior Notes 1,387,400,000 1,458,866,346 1,306,840,000 1,332,252,796 2022 Senior Notes - - 2,613,680,000 2,604,686,597 Total long-term debt 3,134,983,173 3,214,860,166 4,751,722,361 4,770,908,702 Vehicle purchase deposits The Company purchases vehicles through car dealers and makes advance payments in the ordinary course of business before title of vehicles are physically transferred to the Company. As the advance payments will be converted into property and equipment, which is a non-current asset, vehicle purchase deposits are accordingly classified as non-current assets on the consolidated balance sheets. Share-based compensation The Company recognizes share-based compensation based on the grant date fair value of equity awards, with compensation expense, net of a forfeiture rate, recognized over the period in which the grantee is required to provide services to the Company in exchange for the equity award. Share-based compensation expense is recognized (i) immediately at the grant date for awards with no vesting conditions or (ii) using the straight-line method for awards with graded vesting features and service conditions only. Share-based compensation expense is classified in the consolidated statements of comprehensive income based upon the job function of the grantee. For the years ended December 31, 2015, 2016 and 2017, the Company recognized share-based compensation expense of RMB13,983,246, RMB16,040,947 and RMB13,588,843, respectively, as follows: For the years ended December 31, 2015 2016 2017 Cost of revenues 361,951 839,543 843,761 Selling and marketing expenses 894,680 401,498 336,139 General and administrative expenses 12,726,615 14,799,906 12,408,943 Total 13,983,246 16,040,947 13,588,843 (z) Debt issuance costs and debt discounts The Company incurs costs in connection with debt issuance, such as legal and accounting fees. Debt issuance costs and debt discounts are initially recorded as direct deduction from the associated debt liability, and are amortized to interest expense over the term of the respective debt using the effective interest method. (aa) Earnings per share Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights. Net loss is not allocated to other participating securities if based on their contractual terms they are not obligated to share in the losses. Diluted earnings per share is calculated by dividing net income attributable to common shareholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of shares issuable upon the exercise of share options using the treasury stock method. Common equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. Basic and diluted earnings per share are not reported separately for Class A or Class B common shares as each class of shares has the same rights to undistributed and distributed earnings. (ab) Segment reporting In accordance with ASC 280, Segment Reporting, the Company’s chief operating decision maker, the Chief Executive Officer, reviews the 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. The Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenues are derived from within the PRC. Therefore, no geographical segments are presented. (ac) Business Combinations In accordance with ASC 805, Business Combinations, in business combinations not involving entities or businesses under common control, the Company measured the cost of an acquisition as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred and equity instruments issued. The transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | 3. BUSINESS COMBINATIONS Hangzhou eHi Car Sales and Services Co., Ltd., (Formerly called Hangzhou Deyu Car Dealing Services Co., Ltd., renamed on December 5, 2017) In March 2016, to expand its operations, the Company acquired 100 3,229,998 RMB Net assets 45,374 Identifiable intangible assets vehicles plates 4,246,166 Deferred tax liabilities (1,061,542) Total 3,229,998 The intangible assets acquired through the Company's acquisition of Deyu are considered to be indefinite-lived and are therefore not subject to amortization. The Company's business combination completed during the year ended December 31, 2016 did not have a material impact on the Company’s consolidated statements of operations and therefore pro forma disclosures have not been presented. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS. | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 4. ALLOWANCE FOR DOUBTFUL ACCOUNTS An analysis of the For the years ended December 31, 2015 2016 2017 Balance, beginning of the year 5,969,648 7,611,244 9,159,321 Provision for doubtful accounts 1,641,596 1,548,077 5,288,403 Balance, end of the year 7,611,244 9,159,321 14,447,724 |
SHORT-TERM LOAN RECEIVABLE
SHORT-TERM LOAN RECEIVABLE | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
SHORT-TERM LOAN RECEIVABLE | 5. SHORT-TERM LOAN RECEIVABLE In January and June 2016, the Company entered into agreements with Shanghai Chenghuan Car Rental Company Limited (“Shanghai Chenghuan”), pursuant to which the Company agreed to extend, through entrusted bank loans, an aggregate amount of RMB 50,000,000 7.75 100 In January 2017, the Company and Chenghuan entered into supplemental agreements to extend the term of the above loans from 1 year to 2 years and increase the interest rate from 7.75% to 10 2 The Company concluded that the loan should be accounted for as short-term loan receivable in its entirety and compounded accrued interest, as the conversion option is not a derivative and there should be no separate bifurcation of derivative accounting for conversion option. The Company recognized the interest income true-up over the remaining period of contract terms starting from the effective date of the supplemental agreements. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS. | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: As of December 31, 2016 2017 Value-added taxes deductible 311,501,214 774,435,385 Receivables from disposal of vehicles 127,915,314 350,629,000 Prepaid insurance expense 115,498,191 197,256,868 Staff advances 18,060,202 36,404,467 Brand Marketing Prepayments - 30,700,380 Prepaid gasoline and repair supplies 17,481,886 26,685,176 Prepaid rental expenses 13,964,546 17,309,920 Rental deposits 11,137,408 16,301,592 Net investment in direct financing leases, current portion 63,999,571 10,226,920 Others 48,229,013 45,907,304 Total 727,787,345 1,505,857,012 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS | |
INVESTMENTS | 7. INVESTMENTS Travice Inc. In April 2014, the Company acquired series B preferred shares of Travice Inc. through its formerly wholly owned subsidiary Elite Plus Developments Limited (“Elite Plus”). Travice Inc. was a private company which developed and operates the Kuaidi mobile taxi and car calling service. The series B preferred shares acquired represented 8.4 4,684,074 154,251,500 25,000,000 On January 27, 2015, the Company waived its rights under the warrants to purchase 4,684,074 18,409,199 3,000,000 16,869,935 2,749,158 in In February 2015, Travice Inc. was merged with and into Xiaoju Science and Technology Limited, which developed and operates the Didi mobile taxi and car hailing service. After the completion of such merger, the Company’s investment in Travice Inc. was exchanged to a minority stake in the surviving company Xiaoju Kuaizhi Inc. On June 2, 2015, the Company entered a definitive agreement, pursuant to which the Company transferred its 100 983,621,925 160,875,000 803,059,728 131,352,744 deducting 29,193,869 4,773,098 The transactions were Ningbo eHi Ruiji In November 2017, Ningbo Haichao Investment Management Services Co., Ltd. (“Ningbo Haichao”), a wholly owned subsidiary of the Company, as the Limited Partner, and an independent third party Yinzhou Ningyituiji Investment Management Co., Ltd. (“Yinzhou Ningyituiji”), as the General Partner, entered into a partnership agreement in relation to the establishment and management of Ningbo eHi Ruiji Equity Investment LLP (“Ningbo eHi Ruiji”). Ningbo eHi Ruiji would be established in the PRC as a limited partnership for the purpose of equity investment, investment management and investment consulting. Pursuant to the Partnership Agreement, the total capital commitment to Ningbo eHi Ruiji by May 1, 2047 is expected to be RMB60,000,000, of which RMB59,990,000 is to be contributed by Ningbo Haichao and RMB10,000 is to be contributed by Yinzhou Ningyituiji. Ningbo eHi Ruiji would be managed by Yinzhou Ningyituiji. 10,800,000 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment As of December 31, 2016 2017 Vehicles 5,926,576,864 7,775,410,903 In-car equipment 37,670,565 52,443,083 Building 55,587,304 55,587,304 Leasehold improvements 32,752,237 44,056,477 Software 12,211,763 14,051,492 Office furniture and equipment 33,463,933 44,782,752 Property and equipment subject to depreciation 6,098,262,666 7,986,332,011 Less: accumulated depreciation (1,127,934,340) (1,358,334,657) Subtotal 4,970,328,326 6,627,997,354 Construction in progress 753,240,849 429,047,963 Property and equipment, net 5,723,569,175 7,057,045,317 The Company recorded depreciation expense relating to vehicles and in-car equipment of RMB 457,478,811 654,654,545 742,259,659 statements Depreciation expense of other property and equipment totaled RMB 17,242,676 13,363,708 12,806,130 December As of December 465,073,020 210,460,414 As of December 31, 2017, vehicles and in-car equipment with a total initial cost of RMB 252,985,226 as collateral for the unsettled payable balance for the vehicle acquisition due to one of the authorized dealers of SAIC Volkswagen. |
SHORT-TERM DEBT
SHORT-TERM DEBT | 12 Months Ended |
Dec. 31, 2017 | |
SHORT-TERM DEBT | |
SHORT-TERM DEBT | 9. SHORT-TERM DEBT As of December 31, 2016 2017 Short-term borrowings 620,105,995 928,846,417 Long-term borrowings, current portion (Note 10) 306,113,338 1,728,599,440 Total 926,219,333 2,657,445,857 Short-term borrowings As of December 31, 2016 2017 Notes payable 363,983,800 253,259,200 Short-term bank borrowings guaranteed by the Founder and his spouse 75,000,000 - Short-term bank borrowings 181,122,195 675,587,217 Total short-term bank borrowings 620,105,995 928,846,417 Notes payable The Company is required to maintain a certain balance of cash deposit in designated bank accounts for the notes payable outstanding as of December 31, 2017. Such required cash deposit of RMB 115,000,000 11,500,000 75,143,300 Short-term bank borrowings guaranteed by the Founder and his spouse In February 2016, the Company entered into a short-term loan facility agreement with a bank for which a total loan facility up to RMB 25,000,000 25,000,000 4.698 In October 2016, the Company entered into a short-term loan facility agreement with a bank for which a total loan facility up to RMB 50,000,000 50,000,000 4.35 Short-term bank borrowings In 2016, the Company entered into four short-term loan agreements with a bank for an aggregate principal amount of RMB 100,000,000 50,000,000 10,000,000 10,000,000 30,000,000 4.35 150,000,000 30,000,000 50,000,000 20,000,000 30,000,000 20,000,000 4.35 4.35 4.785 4.785 4.785 In April 2016, the Company entered into a short-term borrowing agreement with a bank for an aggregate principal amount of RMB 30,000,000 December 30,000,000 4.1325 50,000,000 50,000,000 4.35 In August 2016, the Company entered into a short-term loan facility agreement with a bank for which a total loan facility up to RMB 25,000,000 25,000,000 4.35 In July 2017, the Company entered into a short-term loan facility agreement with a bank for which a total loan facility up to RMB 240,000,000 45,728,059 5.0025 In November 2017, the Company entered into two short-term borrowing agreements with a bank for an aggregate principal amount of RMB 400,000,000 200,000,000 200,000,000 4.1325 64,580,000 421,978,636 In 2016, in connection with the purchase of vehicles, the Company entered into short-term borrowing agreements with a third-party financing company for an aggregate principal amount of RMB 30,000,000 4.82 26,122,195 50,000,000 4.82 29,859,158 The weighted average interest rate on short-term bank borrowings was 3.66 4.44 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2017 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 10. LONG-TERM DEBT As of December 31, 2016 2017 Long-term borrowings collateralized by vehicles 292,605,866 213,703,954 Long-term bank borrowings collateralized by receivables 189,427,307 40,995,042 Entrusted long-term borrowing from a related party 100,000,000 100,000,000 Long-term borrowings from banks or financing companies 125,000,000 476,503,365 Syndicated loan 1,010,689,797 - 2018 Senior Notes 1,356,213,357 1,292,029,030 2022 Senior Notes - 2,562,424,523 Subtotal 3,073,936,327 4,685,655,914 Less: Current portion of long-term debt (306,113,338) (1,728,599,440) Total long-term debt 2,767,822,989 2,957,056,474 Long-term borrowings collateralized by vehicles In connection with the purchase of vehicles, the Company entered into borrowing agreements from 2013 to 2017 with several third-party financing companies for an aggregate principal amount of RMB 744,203,883 5.20 9.12 402,951,830 74,605,866 33,703,954 In July 2015, the Company entered into a five-year framework agreement with a bank, which includes various financing products for an aggregate amount of RMB 1.5 220 5.225 136,290,802 218,000,000 180,000,000 5.225 Long-term bank borrowings collateralized by receivables In 2014 and 2015, in connection with the purchase of vehicles, a wholly-owned subsidiary of the Company entered into eight long-term loan agreements with a bank. As of December 31, 2016 and 2017, the principal amounts outstanding under these agreements were RMB 121,330,685 10,167,665 5.225 4.75 In September 2014, in connection with the purchase of vehicles, a wholly-owned subsidiary of the Company entered into a long-term loan facility agreement with a bank for which up to RMB 155,000,000 under 68,096,622 30,827,377 4.9875 Entrusted long-term borrowing from a related party In April 2015, in connection with the purchase of vehicles, the Company entered into a entrusted long-term loan agreement with related party, Ctrip Travel Information Technology (Shanghai) Co., Ltd. for which a total loan facility up to RMB 300,000,000 200,000,000 100,000,000 100,000,000 6.90 The remaining principal is payable at the end of the borrowing term, which was three years from the contract date, and interest amounts are payable quarterly over the term of the borrowing arrangement. Long-term borrowings from banks or financing companies In December 2016, the Company entered into a long-term loan agreement with a bank which a total loan facility up to RMB 300,000,000 125,000,000 134,670,687 4.9875 . In May 2017, the Company entered into a long-term loan agreement with a bank for principle amount of RMB 100,000,000 95,000,000 4.9875 The interest rate is adjusted annually based on the published People’s Bank of China interest rate with equivalent terms. . In June 2017, the Company entered into a long-term loan agreement with a bank which a total loan facility up to RMB 50,000,000 41,666,667 4.9875 . In August 2017, the Company entered into a long-term loan agreement with a bank for principle amount of RMB 100,000,000 90,000,000 4.75 In September 2017, in connection with the purchase of vehicles, the Company entered into long-term borrowing agreements with a third-party financing company for an aggregate principal amount of RMB 123,918,976 6.00 115,166,011 With respect to all aforementioned arrangements, the undrawn loan facilities available to the Company totaled RMB 63,358,721 202,605,274 The Company’s short-term and long-term borrowing arrangements include certain restrictive covenants that, among other things, limit the Company’s ability to incur additional indebtedness or create new mortgages or charges, request the Company to maintain its shareholding structure and make timely reports. Certain borrowing covenants also post restrictions on the use of proceeds and asset sales, and require the Company to provide notice or obtain consent US$150 million syndicated loan In August 2016, the Company signed a three-year syndicated loan agreement (the “Facility Agreement”) with a syndicate of lead arrangers, which provided for a US$ 110 40 150 150,000,000 maintain 1,547,240 2018 Senior Notes: On December 8, 2015, the Company issued senior unsecured notes with an aggregate principal amount of RMB 1,281,560,000 200,000,000 Notes 99.342 7.5 7.75 The Notes are general obligations of the Company and are (i) subordinated to secured obligations of the Company, (ii) senior in right of payment to any existing and future obligations of the Company Redemption As described below, the Notes may be repurchased prior to the maturity date at the option of the Company. The holders of the Notes may not redeem the Notes prior to the maturity date, except in the case of a change in control. Contingent redemption option available to holders If a change of control triggering event, generally defined as a merger or acquisition or other fundamental corporate event, were to occur, the holders have the option to require the Company to purchase all outstanding Notes at a purchase price equal to 101 Repurchase options available to the Company The Company may redeem the Notes, in whole but not in part, at any time at a redemption price equal to 100 1.00 The Company may redeem up to 35 107.50 65 60 The Company evaluated the redemption features and concluded The Notes contain restrictive covenants including, among others, limitations on liens, consolidation, investment, merger and sale of the Company's assets, maintenance of a fixed charge coverage ratio, and limitations on asset sales or use of proceeds. The debt issuance costs of RMB 34,538,769 8,432,665 the The effective interest rate of the Notes is 8.99 2022 Senior Notes: On August 14, 2017, the Company issued senior unsecured notes with an aggregate principal amount of RMB2,667,560,000 (US$400,000,000) which will mature on August 14, 2022 (the “2022 Senior Notes”) and early repaid all outstanding borrowings under the syndicated loan concurrently by directly deducting from the issuance proceeds. The issuance price of the 2022 Senior Notes was 100.00% of par value. The 2022 Senior Notes bear a fixed interest rate of 5.875% per annum, yielding 5.875%, with interest payable semi-annually in arrears. The 2022 Senior Notes were issued as unregistered securities to qualified institutional buyers and offshore investors under provisions granting relief from registration under the Securities Act of 1933. The 2022 Senior Notes have a trading market on the Singapore Exchange Securities Trading Limited. The 2022 Senior Notes are general obligations of the Company and are (i) senior in right of payment to any existing and future obligations of the Company expressly subordinated in right of payment; (ii) guaranteed by certain subsidiary guarantors on a senior basis, subject to certain limitations, (iii) subordinated to secured obligations of the Company, and (iv) effectively subordinated to all existing and future obligations of the non-guarantor subsidiaries. The 2022 Senior Notes have been guaranteed as to payment by the Company’s offshore subsidiaries eHi Hong Kong, L&L Financial Leasing Holding Limited, and Brave Passion Limited. Redemption As described below, the 2022 Senior Notes may be repurchased prior to the maturity date at the option of the Company. The holders of the Notes may not redeem the 2022 Senior Notes prior to the maturity date, except in the case of a change in control. Contingent redemption option available to holders If a change of control triggering event, generally defined as a merger or acquisition or other fundamental corporate event, were to occur, the holders have the option to require the Company to purchase all outstanding 2022 Senior Notes at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to (but not including) the date of repurchase. Repurchase options available to the Company The Company may redeem the 2022 Senior Notes on or after August 14, 2020, in whole or in part, at a redemption price equal to 102.938% and 101.469% of the principal amount during the 12-month period commencing on August 14, 2020 and August 14, 2021, respectively, plus accrued and unpaid interest, if any, to (but not including) the redemption date. The Company may redeem the 2022 Senior Notes prior to August 14, 2022, in whole but not in part, at any time at a redemption price equal to 100% of the principal amount of the 2022 Senior Notes redeemed plus the greater of (1) 1.00% of the principal amount, or (2) the excess, if any, of (i) the present value at such redemption date of the redemption price of such 2022 Senior Note on August 14, 2020, plus all required remaining scheduled interest payments due on such 2022 Senior Notes (but excluding accrued and unpaid interest to the redemption date) through August 14, 2020, computed using a discount rate equal to a defined US Treasury security rate plus 100 basis points, over (ii) the principal amount of such 2022 Senior Notes on such redemption date, and accrued and unpaid interest, if any, to (but not including) the redemption date. The Company may redeem up to 35% of the aggregate principal amount of the 2022 Senior Notes with the net cash proceeds of one or more sales of common stock of the Company in an equity offering at a redemption price of 105.875% of the principal amount of the 2022 Senior Notes redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date; provided that at least 65% of the aggregate principal amount of the 2022 Senior Notes remains outstanding after each such redemption and any such redemption takes place within 60 days after the closing of the related equity offering. The Company evaluated the redemption features and concluded that such features did not need to be bifurcated from the 2022 Senior Notes and separately accounted for as derivatives. The 2022 Senior Notes contain restrictive covenants including, among others, limitations on liens, consolidation, investment, merger and sale of the Company's assets, maintenance of a fixed charge coverage ratio, and limitations on asset sales or use of proceeds. The debt issuance costs of RMB55,935,648 associated with the 2022 Senior Notes, reflected as a reduction to the face value of the 2022 Senior Notes, are being amortized over the five-year contractual life of the2022 Senior Notes under the effective interest method, as the Company concluded that redemption prior to the contractual maturity is not probable. The effective interest rate of the 2022 Senior Notes is 6.46%, including the interest charged on the 2022 Senior Notes as well as amortization of the debt issuance costs. The 2022 Senior Notes proceeds were received by the Company’s offshore subsidiary eHi Hong Kong. Future principal Years Ended December 31, Amount (RMB) 2018 1,743,425,515 2019 238,098,275 2020 156,518,571 2022 2,613,680,000 Total 4,751,722,361 |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS PAYABLE | |
ACCOUNTS PAYABLE | 11. ACCOUNTS PAYABLE Accounts payable As of December 31, 2016 2017 Payables for purchase of property and equipment 163,190,564 576,569,163 Others 16,687,283 41,300,848 Total 179,877,847 617,870,011 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: As of December 31, 2016 2017 Advance from customers 68,397,492 105,716,286 Customer deposits 55,991,264 78,975,251 Accrued employee payroll and welfare 57,367,892 72,103,194 Interest accrued 8,530,203 63,982,199 Other tax payable 15,471,552 25,092,518 Provision for customer loyalty program 7,185,774 9,048,815 Accrued professional service fees 4,316,185 7,761,195 Accrued advertising and promotion expense 17,306,922 5,785,785 Payable for property related purchase 11,354,874 - Others 22,569,229 65,421,499 Total 268,491,387 433,886,742 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2017 | |
TAXATION | |
TAXATION | 13. TAXATION (a) PRC VAT The Company is subject to 17 11 6 3 The qualified VAT input credits generated from purchases of vehicles (b) Income Taxes Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains in Cayman Hong Kong Entities incorporated in Hong Kong are subject to Hong Kong profits tax at a rate of 16.5 recorded PRC On March 16, 2007, the National People’s Congress of the PRC enacted an Enterprise Income Tax Law (“EIT Law”), under which Foreign Investment 25 The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25 The EIT Law also imposes a withholding income tax of 10 to 5 25 All FIEs are subject to the withholding tax from January 1, 2008. Under U.S. GAAP, undistributed earnings are presumed to be transferred to the parent In accordance with PRC tax regulations, the Company provided RMB 83,103,026 13,587,500 10 1,881,456 270,986 Pre-tax income The following table sets forth the components of pre-tax income: For the years ended December 31, 2015 2016 2017 Pre-tax income from domestic (PRC) entities 5,669,944 248,923,620 261,743,051 Pre-tax income (loss) from foreign (non-PRC) entities 778,156,851 (209,177,533) (92,151,762) Total pre-tax income 783,826,795 39,746,087 169,591,289 During the year ended December 31, 2015, the Company’s pre-tax income attributable to non-PRC entities mainly resulted from the gain on sale of its investment in Xiaoju Kuaizhi Inc., as discussed in the foregoing paragraph. During the year ended December 31, 2016 and 2017, the Company’s pre-tax loss from non-PRC entities mainly resulted from the interest expenses related to senior notes issued. The current and deferred portions of income tax expense included in the consolidated statements of operations and comprehensive income during the years ended December 31, 2015, 2016 and 2017 are as follows: For the years ended December 31, 2015 2016 2017 Current income tax expense Domestic (PRC) entities 1,408,703 3,049,504 1,152,383 Foreign (non-PRC) entities - - - Total 1,408,703 3,049,504 1,152,383 Deferred income tax expense Domestic (PRC) entities - (2,489,648) 29,066,413 Foreign (non-PRC) entities - - - Total - (2,489,648) 29,066,413 Income tax expense (excluding withholding tax) Domestic (PRC) entities 1,408,703 559,855 30,218,796 Withholding tax Foreign (non-PRC) entities 86,079,287 6,051,116 17,156,250 Total income tax expense 87,487,990 6,610,971 47,375,046 Reconciliation of the differences between statutory tax rate and the effective tax rate The following table sets forth a reconciliation between the statutory PRC EIT rate of 25% and the effective tax rate: For the Years Ended December 31, 2015 2016 2017 Statutory income tax rate 25.0 % 25.0 % 25.0 % Different tax rates in other jurisdictions (26.0) % 90.8 % 13.3 % Withholding tax 10.6 % 15.2 % 10.1 % Permanent differences 0.1 % (17.1) % 0.9 % Change in valuation allowance 1.1 % (97.5) % (21.2) % Tax holiday 0.2 % (0.2) % Other 0.4 % Effective tax rate 11.2 % 16.6 % 27.9 % For the year ended December 31, 2016, the Group’s effective tax rates increase was primarily attributable to the impact of the interest expenses of the syndicated loan, 2018 Senior Notes and foreign exchange loss recorded on certain subsidiaries with preferential tax rates, which led to the increase in effective tax rate of 116.8 76.3 Deferred tax assets The following table sets forth the significant components of the deferred tax assets: As of December 31, 2016 2017* Current* Deferred tax assets: Accrued payroll and other expenses 598,246 - Allowance for doubtful accounts 2,289,830 - Deferred government grant income 2,151,411 - Others 11,950 - Less: valuation allowance (3,211,464) - Total current deferred tax assets, net 1,839,973 - Non-current Deferred tax assets: Accrued payroll and other expenses - 38,886,321 Allowance for doubtful accounts - 3,611,931 Net operating loss carry forwards 55,724,899 40,279,987 Less: valuation allowance (35,963,269) (3,143,454) Total non-current deferred tax assets, net 19,761,630 79,634,785 Deferred tax liabilities, Temporary difference on property and equipment 19,111,955 90,793,841 Deferred revenue - 15,417,709 Recognition of intangible assets arisen from business combination 1,061,542 1,061,542 Total non-current deferred tax liability 20,173,497 107,273,092 As of December 31, 2016 2017* Current deferred tax assets, net* 1,839,973 - Non-current deferred tax assets, net 649,675 - Non-current deferred tax liability, net 1,061,542 27,638,307 Movement of valuation allowance 2015 2016 2017 Balance at beginning of the year 89,697,127 89,738,490 39,174,733 Additions in current year 25,374,784 3,128,771 456,508 Reversals in current year (25,210,766) (53,692,038) (36,482,572) Expirations in current year (122,655) (490) (5,215) Balance at the end of the year 89,738,490 39,174,733 3,143,454 As of December 31, 2015 and 2016, the Company had net operating loss carry forwards of approximately RMB 300,376,325 341,922,125 167,597,369 A valuation allowance is provided against deferred tax assets when the Company determines that it is more likely than not that the deferred tax assets will not be utilized in the future or before their expiration. Establishment and removal of a valuation allowance requires management to consider all positive and negative evidence and to make a judgmental decision regarding the amount of valuation allowance required as of a reporting date. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. In the evaluations, management considers all available evidence, both positive and negative, including but not limited to the following: · Positive results from continuing operations before income taxes; · Recent history of generating taxable income which has allowed for the utilization of tax credit carryforwards; · The three year comprehensive cumulative profitability position; For the year ended December 31, 2015, the reversal of valuation allowance was all related to the utilization of net operating loss carry forwards for which full valuation allowances was provided in prior years. For the year ended December 31, 2016, certain valuation allowance were reversed in 2016 when those entities generated sufficient taxable income and are forecasted to continue to be profitable, which management determined provided sufficient positive evidence as of December 31, 2016 to utilize the deferred tax assets. As of December 31, 2017, valuation allowance of RMB 3,143,454 If events occur in the future that prevent these entities from realizing some or all of its deferred tax assets, an adjustment to the valuation allowances will be recognized when such events occur. Management will continue to evaluate the ability to realize the Company’s net deferred tax assets and the remaining valuation allowance. Uncertain tax positions The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2016 and 2017, the Company did not have any significant uncertain tax positions leading to liabilities for unrecognized tax benefits. Interest and penalties related to uncertain tax positions, if any, are included in provision for income taxes. |
COMMON SHARES
COMMON SHARES | 12 Months Ended |
Dec. 31, 2017 | |
COMMON SHARES. | |
COMMON SHARES | 14. COMMON SHARES As of December 31, 2017, the Company had an aggregate of 138,890,287 73,251,730 65,638,557 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 15. FAIR VALUE MEASUREMENTS The Company’s recurring fair value measurements for financial assets and liabilities are limited to cash and cash equivalents as of December 31, 2016 and 2017. Cash and cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in an active market. The Company did not have any Level 2 or Level 3 categorized assets or liabilities as of December 31, 2016 and 2017, respectively. |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Dec. 31, 2017 | |
OTHER INCOME (EXPENSE), NET | |
OTHER INCOME, NET | 16. OTHER INCOME, NET Other income, net consists of the following: For the Years Ended December 31, 2015 2016 2017 American Depositary Receipt reimbursement 9,917,716 - - Tax refund - 979,794 518,171 Others 287,559 464,335 1,438,848 Total 10,205,275 1,444,129 1,957,019 |
EARLY EXTINGUISHMENT OF DEBT CO
EARLY EXTINGUISHMENT OF DEBT COSTS | 12 Months Ended |
Dec. 31, 2017 | |
Extinguishment of Debt Disclosures [Abstract] | |
Extinguishment of Debt Disclosures [Text Block] | 17. EARLY EXTINGUISHMENT OF DEBT COSTS On August 15, 2017, the Company early repaid the US$ 150 3.1 19,976,776 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 18. SHARE-BASED COMPENSATION 2010 Performance Incentive Plan On April 1, 2010, the Company adopted the 2010 Performance Incentive Plan (“2010 Plan”) under which the Company reserved 2,627,730 4,300,730 The Company granted 300,000 3.11 4,300,730 6,698,470 450,000 1,300,000 7.00 On August 28, 2015, the directors of the Company’s Compensation Committee approved an option modification to extend the contractual term of all outstanding share options granted to employees and a director (excluding the Company’s Founder) under the 2010 Plan on August 31, 2010 by one year. The modified options, totally amounting to 1,588,648 76,552 On December 26, 2015, the directors of the Company’s Compensation Committee approved an option modification to extend the contractual term of all outstanding share options granted to the Founder, under the 2010 Plan on December 31, 2010 by one year. The modified options, totally amounting to 1,673,000 1,502,987 661,926 The following table summarizes the Company’s option activities under the 2010 Plan for the years ended December 31, 2015, 2016 and 2017: Number of Weighted Weighted Aggregate Options outstanding at December 31, 2014 5,136,900 3.76 1.95 5,425,522 Exercised (138,700) 2.20 Cancelled and forfeited (98,200) 6.86 Options outstanding at December 31, 2015 4,900,000 3.74 1.59 13,356,070 Exercised (1,726,874) 2.20 Cancelled and forfeited (17,626) 6.97 Options outstanding at December 31, 2016 3,155,500 4.57 1.64 2,801,660 Cancelled and forfeited (51,500) 7.00 Options outstanding at December 31, 2017 3,104,000 4.53 1.16 5,277,775 Vested and expected to vest at December 31, 2017 3,103,965 4.53 1.16 5,277,775 Exercisable at December 31, 2017 2,775,000 4.30 1.12 5,144,025 Share options The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the market value of the underlying stock at each balance sheet date. The total intrinsic value of options exercised at exercise date during the years ended December 31, 2015 and 2016 were RMB 2,577,855 38,265,778 Share-based compensation expense for the share options is recorded on a straight-line basis over the requisite service period, which is generally three to five years from the date of grant. The Company recognized share-based compensation expenses of RMB 7,666,182 8,489,631 7,638,082 As of December 31, 2017, there was RMB 4,039,457 Restricted shares A summary of the restricted shares activities under the 2010 Plan for the years ended December 31, 2015, 2016 and 2017 is presented below: Number of Restricted Shares Weighted Average Grant-date Fair Unvested at January 1, 2015 337,500 6.99 Vested (112,500) 6.99 Unvested at December 31, 2015 225,000 6.99 Vested (112,500) 6.99 Unvested at December 31, 2016 112,500 6.99 Expected to vest at December 31, 2016 112,500 6.99 Vested (112,500) 6.99 Unvested at December 31, 2017 - - The total fair value of restricted shares vested at vesting date during the years ended December 31, 2015, 2016 and 2017 was US$ 537,750 590,625 507,938 Share-based compensation expense for restricted shares is recorded on a straight-line basis over the requisite service period, which is three years from the date of the grant. The Company recognized share-based compensation expense for restricted shares of RMB 4,894,683 5,222,062 3,504,963 2014 Performance Incentive Plan In October 2014, the Company adopted a 2014 Performance Incentive Plan (“2014 Plan”), which became effective immediately after the completion of the Company’s initial public offering in November 2014. Under the 2014 Plan, the Company is authorized to initially reserve a maximum of 4,000,000 1 1,000,000 On May 15, 2015, the Company granted 525,000 5.35 10 25 On March 23, 2017, the Company granted 6,000 50% of which vested immediately, with the remaining 50% vested over the next two years (25% vest on each of the first and second anniversaries of the grant date). Share options The following table summarizes the Company’s option activities under the 2014 Plan for the years ended December 31, 2015, 2016 and 2017: Number of Weighted Weighted Aggregate Weighted Options outstanding at January 1, 2015 Granted 525,000 5.35 2.86 Cancelled and forfeited (16,000) 5.35 Options outstanding at December 31, 2015 509,000 5.35 9.38 481,005 Cancelled and forfeited (8,000) 5.35 Options outstanding at December 31, 2016 501,000 5.35 8.38 Exercised (27,000) 5.35 Cancelled and forfeited (71,000) 5.35 Options outstanding at December 31, 2017 403,000 5.35 7.38 175,305 Vested and expected to vest at December 31, 2017 396,226 5.35 7.38 172,358 Exercisable at December 31, 2017 201,500 5.35 7.38 87,653 The grant date fair value of each option is calculated using a binomial option pricing model by the Company. The fair value of each option grant under the 2014 Plan was estimated on the date of grant with the following assumptions: For the Year Ended Risk-free rate 2.14 % Option term 10 years Volatility 55 % Dividend yield 0.00 % Exercise multiple 2/2.5 Expected forfeiture rate (post-vesting) 0%/10 % The Company estimated the expected volatility based on the weighted-average annualized standard deviation of the daily return embedded in historical share prices, considering share prices of the Company and comparable companies. Risk free interest rate was estimated based on the yield to maturity of US treasury bonds denominated in US$. The exercise multiple is estimated as the ratio of fair value of underlying shares over the exercise price as at the time the option is exercised, based on a consideration of research study regarding exercise pattern based on empirical studies on the actual exercise behavior of employees. The Company has never declared or paid any cash dividends on its capital stock, and the Company does not anticipate any dividend payments on its common shares in the foreseeable future. Estimated forfeiture rates are determined based on historical employee turnover rates. Expected forfeiture rates of 0 10 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the market value of the underlying stock at each balance sheet date. The total intrinsic value of options exercised at exercise date during the years ended December 31, 2017 was RMB 52,162 Share-based compensation expense for options is recorded on a straight-line basis over the requisite service period, which is four years from the date of grant. The Company recognized share-based compensation expense of RMB 1,422,381 2,329,254 2,304,913 As of December 31, 2017, there was RMB 2,333,324 1.37 Restricted Share Units A summary of the restricted share units activities under the 2014 Plan for the year ended December 31, 2017 is presented below: Unvested Restricted Share Units Number of Restricted Share Units Weighted Average Grant-date Fair Unvested at January 1, 2017 - - Granted 6,000 5.11 Vested (3,000) 5.11 Unvested at December 31, 2017 3,000 5.11 Expected to vest at December 31, 2017 2,502 5.11 The total fair value of restricted share units vested at vesting date during the year ended December 31, 2017 was US$ 15,240 Share-based compensation expense for restricted share units vested immediately is fully recorded on grant day. The remaining share-based compensation expense is recorded on a straight-line basis over the requisite service period, which is two years from the date of the grant. The Company recognized share-based compensation expense for restricted shares of RMB 140,885 As of December 31, 2017, there was RMB 49,307 1.23 |
INCOME PER SHARE
INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
INCOME(LOSS) PER SHARE | |
INCOME PER SHARE | 19. INCOME PER SHARE Basic and diluted net income per share for each of the years presented are calculated as follows: For the Years Ended December 31, 2015 2016 2017 RMB RMB RMB Numerator: Net income : 696,338,805 33,135,116 122,216,243 Numerator for basic and diluted net income per share 696,338,805 33,135,116 122,216,243 Denominator: Denominator for basic calculation-weighted average number of common shares outstanding 126,758,363 137,621,702 138,794,624 Dilutive effect of share options 1,593,216 897,122 758,702 Dilutive effect of restricted shares and restricted share units 52,298 33,207 40,591 Denominator for diluted income per share calculation 128,403,877 138,552,031 139,593,917 Basic net income per share attributable to the Company’s common shareholders 5.49 0.24 0.88 Diluted net income per share attributable to the Company’s common shareholders 5.42 0.24 0.88 Basic net income per ADS* 10.99 0.48 1.76 Diluted net income per ADS* 10.85 0.48 1.75 * Each ADS represents two Class A common shares. Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net earnings per share is computed using the weighted average number of common shares and dilutive common share equivalents outstanding during the period. The effects of outstanding share options, restricted shares and restricted share units of 2,828,588 2,753,664 1,584,581 The Company does not distinguish between Class A and Class B common shares for purposes of presenting basic or diluted earnings per share as each share class has identical privileges with respect to undistributed and distributed earnings. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES (a) Operating leases The Company and its subsidiaries have entered into non-cancelable operating leases covering various facilities. Future minimum lease payments under these non-cancellable leases as of December 31, 2017 are as follows: Year ending December 31, (RMB) 2018 51,630,688 2019 27,830,356 2020 9,609,139 2021 6,110,999 2022 3,012,326 Thereafter 852,333 99,045,841 The Company recorded rental expense of RMB 50,738,573 57,538,983 65,405,038 (b) Purchase commitments In addition to vehicle purchase deposits reflected in the consolidated balance sheet, the Company’s purchase commitments relate to purchase of vehicles and marketing resources. Total purchase commitments contracted but not yet reflected in the consolidated financial statements amounted to RMB 560,047,600 550,509,970 9,537,630 Other than those disclosed above, the Company did not have other significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2017. (c) Contingencies On May 8, 2017, a company named Shanghai Zhongqi Anhua Car Services Co., Ltd., (“Zhongqi Anhua”), filed a tort liability suit in People’s Court of Jingan District, Shanghai (the “District Court”), against eHi Rental, and involved Shanghai Municipal Transportation Commission (“SMTC), as a third party to the suit. Zhongqi Anhua claimed in their complaint that eHi Rental shall (i) admit the tort (ii) stop using the car rental operation certificate No.3516 issued by SMTC (the “Car Rental Certificate”), alleging the Car Rental Certificate and relevant vehicle operation certificates are possessed by Zhongqi Anhua, (iii) compensate the damages suffered by Zhongqi Anhua in connection with the alleged infringement totaling RMB30 million, and (iv) apologize to Zhongqi Anhua. On July 3, 2017, the District Court rendered a judgment rejecting all the claims raised by Zhongqi Anhua for absence of proof of the claims. On July 19, 2017, Zhongqi Anhua submitted a petition for appeal to Shanghai No.2 Intermediate People’s Court (the “Appellate Court”), and the Appellate Court ruled on September 1, 2017 that the judgment rendered by the District Court be remanded for re-trial as certain facts should be further clarified by the District Court. As of the date of these consolidated financial statements are issued, the above lawsuit is still pending for judgement and the Company is actively defending the case. Considering the facts that eHi Rental obtained the Car Rental Certificate through regulated procedures set forth by SMTC, which consists of no infringement behavior by eHi Rental, and that eHi Rental has been compliant with all relevant SMTC annual inspection/certificate renewal requirement, the Company believes such claims are without merit and the Company has been advised by Shanghai Hengye Law Firm (“Hengye”), being eHi Rental’s PRC counsel to this suit, that the loss from an unfavorable court decision is reasonably possible but not probable. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 21. RELATED PARTY TRANSACTIONS Crawford/Enterprise In March 2012, the Company entered into a global affiliation agreement with Enterprise Holdings (China) LLC (“Enterprise China”). Enterprise China is an affiliate of Enterprise Holdings, Inc, a subsidiary of Crawford Group, Inc. (“Crawford”). Crawford was a holder of the Company’s Class A, Series D and Series E Shares and is currently a holder of the Company’s Class B common shares. Pursuant to the global affiliation agreement, the Company and Enterprise China are to direct certain rental referrals to each other via their respective websites, and for each referral received, the Company is liable for a contractually specified amount of referral fees payable to Enterprise China, and vice versa. The Company records referral fees payable to Enterprise China as sales and marketing expenses, and referral fees received as other operating income. Transactions incurred under this arrangement were immaterial for the periods presented. Under the Additional Series E Preferred Share purchase agreement dated April 16, 2014, Crawford Group Inc. purchased 1,764,055 9,702,299 On October 31, 2014, Crawford Group, Inc. (“Crawford”), a parent company of Enterprise Holdings, Inc, exercised all of the 1,500,000 1,500,000 5.50 8,249,993 50,705,282 As of December 31, 2017, Crawford holds 18,694,003 Ctrip Under the Additional Series E Preferred Share purchase agreement dated April 16, 2014, Ctrip Investment Holding Ltd. (‘‘Ctrip’’) purchased 2,368,193 13,025,062 On October 14, 2014, the Company entered into a subscription agreement with Ctrip, pursuant to which Ctrip purchased from the Company 1, ,666 Class A common shares at US$ 6.00 In December 2014, the Company entered into a service agreement (“Agreement") with Ctrip for car rental and car services referral. Pursuant to the Agreement, the Company pays a fixed percentage of car rental or car services rates from successful car referrals as commissions to Ctrip (resulting in related party payable balances), and Ctrip collects car rental and car services fees from individual customers on behalf of the Company (resulting in related party receivable balances). In order to further promote the Company's car services to individual customers, starting from September 1, 2015, the Company entered into a supplementary agreement with Ctrip. Pursuant to this supplementary agreement, the Company needs to pay a fixed minimum commission fee of referrals in addition to the fixed commission rates for car rental and car service referral mentioned in the Agreement. In November 2016, an amendment was entered that the fixed minimum commission fee would no longer charged by Ctrip since then. Transactions incurred under these service agreements were RMB 16,190,063 29,399,234 16,263,674 In the end of April 2015, Ctrip extended an entrusted bank loan of RMB 300,000,000 6.9 200,000,000 14,202,500 18,534,167 6,995,833 Private Placement On May 22, 2015, the Company entered into definitive securities purchase agreements with Tiger Fund and SRS Funds (the “Buyers”’) pursuant to which the Company agreed to issue, and issued, a total of 22,337,924 6.00 12.00 134 transaction. Under the terms of the securities purchase agreements, the Class A common shares were issued in two tranches: (a) a first tranche of 11,437,924 10,900,000 2,666,666 6.00 12.00 As of December 31, 2016 and 2017, significant balances with related parties were as follows: As of December 31, 2016 2017 Due from a related party, current: Receivables due from Ctrip 1,755,889 83,323,718 Due to a related party, current: Payables due to Ctrip 16,083,610 210,833 Due to a related party, current: Borrowing due to Ctrip 100,000,000 100,000,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS On April 6, 2018, the Company has entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") with Teamsport Parent Limited ("Parent") and its merger sub, that Parent will acquire the Company for US$ 13.50 On April 13, 2018, Ctrip, one of the Company’s registered shareholders, filed a petition in the Grand Court of The Cayman Islands (the “Court”) seeking alternative relief, including, among other things, requesting that the Court to enjoin the Company from relying upon the resolutions adopted on April 6, 2018 and April 10, 2018, respectively, in connection with the approval of Merger Agreement and requesting that the board and the special committee of the Company review another preliminary non-binding offer from Ocean Link Partners Limited, a private equity firm, for the purchase of all of the outstanding shares of the Company (including shares represented by ADSs) for US$ 14.50 7.25 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
RESTRICTED NET ASSETS. | |
RESTRICTED NET ASSETS | 23. RESTRICTED NET ASSETS Pursuant to laws applicable to entities incorporated in the PRC, the Company’s subsidiaries and VIEs in the PRC are required to make appropriations from after-tax profit to non-distributable reserve funds. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires an annual appropriation of 10 50 As the Company’s PRC subsidiaries and VIEs have accumulative losses, they have not started to contribute to the staff welfare and bonus funds. In addition, due to restrictions on the distribution of share capital from the Company’s PRC subsidiaries, up to the amount of net assets held in each subsidiary and VIE, and also as a result of these entities’ unreserved accumulated losses. Total restricted net assets of the Company were RMB 3,482,551,773 82.8 |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2017 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 24. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The subsidiaries did not pay any dividends to the Company for the years presented. For the purpose of presenting parent company only financial information, the Company records its investments in its subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investments (deficit) in subsidiaries and VIEs” and the loss of the subsidiaries and VIEs is presented as “share of loss of subsidiaries and VIEs”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments, long-term obligations except for the 2018 Senior Notes, US$ 150 As of December 31, 2016 2017 RMB RMB US$ (Note 2(d)) ASSETS Current assets: Cash and cash equivalents 4,271 4,023 618 Restricted cash 10,733,202 Amounts due from subsidiaries 6,717,714,285 7,959,314,970 1,223,324,312 Prepaid expenses and other current assets 4,208,266 3,609,637 554,791 Total current assets 6,732,660,024 7,962,928,630 1,223,879,721 Investments in subsidiaries and VIEs 192,995,609 29,662,882 Total assets 6,732,660,024 8,155,924,239 1,253,542,603 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt 1,292,029,030 198,581,226 Accrued expenses and other current liabilities 8,678,123 78,150,364 12,011,491 Income tax payable 4,169,661 16,773,553 2,578,048 Total current liabilities 12,847,784 1,386,952,947 213,170,765 Long-term debt 2,366,903,154 2,562,424,523 393,837,438 Deficits in subsidiaries and VIEs 361,779,545 Total liabilities 2,741,530,483 3,949,377,470 607,008,203 Shareholders’ equity: Common shares, US$0.001 par value, 500,000,000 and 500,000,000 (including 407,328,619 Class A and 92,671,381 Class B) shares authorized, 138,860,287 (including 67,547,921 Class A and 71,312,366 Class B) and 138,890,287 (including 73,251,730 Class A and 65,638,557 Class B) shares issued and outstanding as of December 31, 2016 and December 31, 2017, respectively 878,463 878,663 135,048 Additional paid-in capital 4,474,702,198 4,489,246,326 689,984,527 Accumulated other comprehensive income 43,201,465 121,858,122 18,729,250 Accumulated deficit (527,652,585) (405,436,342) (62,314,425) Total shareholders’ equity 3,991,129,541 4,206,546,769 646,534,400 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 6,732,660,024 8,155,924,239 1,253,542,603 For the Years Ended December 31, 2015 2016 2017 RMB RMB RMB US$ (Note 2(d)) Operating expenses: General and administrative expenses (21,426,624) (25,424,596) (31,013,301) (4,766,657) Loss from operations (21,426,624) (25,424,596) (31,013,301) (4,766,657) Interest income: Third party 3,537,155 760 117 Subsidiaries 41,696,607 184,327,276 28,330,583 Total interest income 45,233,762 184,328,036 28,330,700 Interest expense (6,905,640) (128,065,737) (216,816,430) (33,324,075) Early extinguishment of debt costs (19,976,776) (3,070,374) Gain from sale of cost method investment 803,059,728 Share of gain of subsidiaries and VIEs (2,227,088) 147,442,803 222,850,964 34,251,566 Other income 9,917,716 Income before income taxes 782,418,092 39,186,232 139,372,493 21,421,160 Provision for income taxes (86,079,287) (6,051,116) (17,156,250) (2,636,867) Net income 696,338,805 33,135,116 122,216,243 18,784,293 Net income 696,338,805 33,135,116 122,216,243 18,784,293 Changes in cumulative foreign currency translation adjustment, net of tax of nil 73,410,193 (31,353,357) 78,656,657 12,089,307 Comprehensive income 769,748,998 1,781,759 200,872,900 30,873,600 STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2015 2016 2017 RMB RMB RMB US$ (Note 2(d)) Net cash provided by operating activities Net cash used in investing activities Net cash used in financing activities: Effect of exchange rate changes on cash and cash equivalents 230 273 (248) (38) Net increase (decrease) in cash and cash equivalents 230 273 (248) (38) Cash and cash equivalents-beginning of year 3,768 3,998 4,271 656 Cash and cash equivalents-end of year 3,998 4,271 4,023 618 Supplemental disclosure for cash flow information: Cash paid for interest Cash paid for income taxes For the Years Ended December 31, 2015 2016 2017 RMB RMB RMB US$ (Note 2(d)) Supplemental disclosure of non-cash investing and financing activities: Payment for IPO issuance costs (cash paid by a subsidiary of the Company on behalf of the Company) (20,656,597) Proceeds from issuance of Class A common shares in private placement, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) 792,860,341 Proceeds from exercise of share options (cash received by a subsidiary of the Company on behalf of the Company) 4,891,204 25,431,373 955,485 146,855 Proceeds of issuance of the 2018 Senior Notes, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) 1,241,289,905 Repayment of syndicated loan(cash paid by a subsidiary of the Company on behalf of the Company) (1,000,335,000) (153,748,674) Proceeds of issuance of the 2022 Senior Notes, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) 2,611,624,352 401,399,313 Payment for Senior Notes issuance costs (cash paid by a subsidiary of the Company on behalf of the Company) (2,740,945) Proceeds of US$150 million syndicated loan, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) 957,158,701 Proceeds from sale of cost method investment, net of related transaction costs (cash received by a subsidiary of the Company on behalf of the Company) 954,428,056 Payment of professional fees for aborted offerings (cash paid by a subsidiary of the Company on behalf of the Company) (1,748,969) (268,812) Accrued professional fees for issuance of Senior Notes 2,740,945 Accrued professional fees for aborted offering 2,174,451 334,207 Subscription receivables related to share option exercise 197,816 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Company, its subsidiaries and VIEs are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company had negative working capital of RMB 363,137,042 at December 31, 2017 primarily due to the maturity of the 2018 Senior Notes in December 2018. The management believes that the Company's current cash position as of December 31, 2017, the cash expected to be generated through the disposal of the Company's vehicles subject to repurchase programs (note 2(l)), operations and funds available from borrowings under the bank facilities will be sufficient to meet the Company’s working capital and capital expenditure for at least the next twelve months from the date these financial statements were issued. As such, these financial statements are prepared under the going concern assumption which contemplates the realisation of assets and the liquidation of liabilities in the ordinary course of business. |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, and the VIEs for which the Company is the ultimate primary beneficiary. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. The VIEs for which the Company is the ultimate primary beneficiary, eHi Information and eHi Car Sharing, have insignificant operations; related balances and transactions are immaterial for all periods presented. All transactions and balances among the Company, its subsidiaries, and the VIEs have been eliminated in consolidation. |
Use of estimates | (c) Use of estimates The preparation of financial statements in conformity 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 financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from such estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include the allowance for doubtful accounts, costs related to customer loyalty programs, useful lives of vehicles and other tangible or intangible assets, residual values of vehicles, impairment of intangibles and long-lived assets, certain accruals or contingent liabilities, valuation allowances for deferred tax assets, provisions for uncertain tax positions, valuation of share-based awards and forfeiture rates. |
Foreign currency and foreign currency translation | (d) Foreign currency and foreign currency translation The Company uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of the PRC is the United States dollar (“US$”), while the functional currency of the PRC entities is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income as general and administrative expenses. Transaction gains and losses resulting from intercompany foreign currency transactions that are of a long-term investment nature are treated in the same manner as translation adjustments and included in cumulative translation adjustments, which is a separate component of shareholders’ equity in the consolidated financial statements. Assets and liabilities of the Company and its subsidiaries incorporated outside of the PRC are translated into RMB at year-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the year. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive income or loss in the consolidated statements of changes in shareholders’ equity. The rates of exchange for the U.S. dollar used for translation purposes were RMB 6.9370 6.5342 6.2284 6.6401 6.7547 The unaudited United States dollar (“US$”) amounts disclosed in the accompanying financial statements are presented solely for the convenience of the reader. Unless the amounts were from transactions originally denominated in U.S. dollars or otherwise noted, all translations from RMB into U.S. dollars and from U.S. dollars to RMB for the convenience of the reader were calculated at the rate of US$1.00 = RMB 6.5063 |
Concentration of credit risk | (e) Concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents and accounts receivable. The Company deposits its cash and cash equivalents with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these banks are major financial institutions with high credit quality. When providing services, the Company generally requires individual customers to make advance payments, or a deposit from the corporate and institutional clients before services are rendered. Accounts receivable primarily represents those receivables derived in the ordinary course of business in relation to corporate and institutional clients. The Company offers payment terms in the range of 5 120 Except for Ctrip (Note 21), no single customer accounted for more than 10% of the Company’s consolidated accounts receivable as of December 31, 2016 and 2017, or for more than 10% of the Company’s consolidated net revenues in any of the periods presented. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash in banks, which are unrestricted as to withdrawal or use. |
Restricted cash | (g) Restricted cash Restricted cash includes cash and cash equivalents that are not readily available for the Company’s normal disbursements. Restricted cash and cash equivalents are primarily related to cash deposits with banks and financial institutions required as part of the Company’s short-term borrowing arrangements (Note 9). |
Investments | Investments The Company’s investments include cost method investments and held to maturity investments. We use the cost method of accounting for equity investments that are not considered debt securities or equity securities that have readily determinable fair values and over which we have neither significant influence nor control through investments in common stock or in-substance common stock. Under the cost method, we carry the investment at cost and recognizes income to the extent of dividends received from the distribution of the equity investee’s post-acquisition profits. The investments that we intend and are able to hold to maturity are classified as held-to-maturity investments and are stated at amortized cost. We monitor our investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. |
Accounts receivable, net of allowance for doubtful accounts | (i) Accounts receivable, net of allowance for doubtful accounts Accounts receivable mainly consist of amounts due from the Company’s corporate and institutional clients, which are recognized and carried at the original invoice amount less an allowance for doubtful accounts. The Company performs ongoing credit evaluation of its customers, and assesses the allowance for doubtful accounts based upon expected collection ability based on the age of the receivables and factors surrounding the credit risk of specific customers. |
Short term loan receivable | (j) Short term loan receivable Short-term loan receivables consist of loans extended to third-parties and are recorded at amortized cost. The Company records interest on an accrual basis and recognizes it in "Interest income" as earned in accordance with the contractual terms of the loan agreement, to the extent that such amounts are expected to be collected. |
Vehicles held for sale | (k) Vehicles held for sale Vehicles held for sale consist of used vehicles subject to signed sales agreements awaiting completion of title transfer. When a vehicle is reclassified as held for sale and transferred from property, plant and equipment, it is not further depreciated and is stated at lower of cost and net realizable value. Cost is the net book value upon the reclassification of the vehicle. Net realizable value is the selling price in accordance with the sales agreement less the estimated costs to be incurred upon the completion of title transfer. As of December 31, 2017, the vehicles reclassified as held for sale are expected to complete title transfer within one year. |
Property and equipment, net | Property and equipment, net Property and equipment is stated at cost, less accumulated depreciation and impairment. Initial cost is comprised of the purchase price, plus any costs directly attributable to bringing the property and equipment to the location and condition necessary for its intended use. Depreciation of property and equipment is calculated on a straight-line basis, after consideration of expected useful lives and estimated residual values. The Company begins depreciating vehicles when they are ready for their intended use. The estimated useful lives of these assets are generally as follows: Category Estimated useful lives Vehicles 1-4 years In-car equipment 3 years Office furniture and equipment 5 years Software 3 - 5 years Building 39 years Leasehold improvements Over the shorter of the lease term or the estimated useful life - 1-5 years Construction in progress represents offices under construction and newly acquired vehicles which are not yet been placed in service. Construction in progress is transferred to property and equipment and depreciation commences when an asset is ready for its intended use. Vehicles A vehicle is considered ready for its intended use generally when the license plate for the vehicle is obtained, the vehicle is insured, and when a GPS tracking device is installed. Expenditures for repairs and maintenance of vehicles are expensed as incurred. The Company expects to hold its vehicles generally for a period of approximately three to four years before their disposal, except for vehicles subject to repurchase programs, which have a holding period that typically ranges from 12 24 The Company monitors accounting estimates relating to vehicles on a quarterly basis, including the depreciation rates and estimated residual values. Changes made to estimates are reflected in vehicle-related depreciation expense on a prospective basis. In addition, depreciation expense associated with vehicles subject to repurchase programs is recorded based on the contractual repurchase prices and holding periods, and is adjusted if the repurchase conditions are not met. When a vehicle is reclassified as held for sale, it is not further depreciated and is accounted for as held for sale. Gain or loss on disposed vehicles or loss on vehicles held for sale is recognized as an adjustment to depreciation expense as part of cost of revenues. The Company recorded a net loss of RMB 5,055,620 1,848,313 24,241,209 |
Intangible assets | (m) Intangible assets Intangible assets are substantially comprised of car rental operating licenses and vehicle license plates acquired from third parties and local administration authorities. Gross carrying value totaled RMB 64,101,470 66,505,752 The car rental operating licenses are originally assigned a fixed operating period, which can be extended upon expiration without significant additional cost. The Company also believes that there is no significant risk involved in the car rental operating license renewal process. Further, there are no legal, regulatory, or contractual provisions of which the Company is aware that may limit the useful life of such licenses. As such, the Company considers such car rental operating licenses to be indefinite-lived and carries them at cost less any subsequent impairment losses. Vehicle license plates do not expire and require no renewal. Therefore, they are similarly considered to be indefinite-lived and are carried at cost less any subsequent accumulated impairment losses. |
Impairment of intangible assets and long-lived assets | (n) Impairment of intangible assets and long-lived assets The Company evaluates intangible assets and long-lived assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. For long-lived assets, when these events occur, the Company evaluates impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. For indefinite lived assets, the impairment test consists of a comparison of the fair value with carrying value. If the carrying value of an intangible asset exceeds its fair value, which is generally determined using the income approach, market approach, or a combination thereof, an impairment loss is recognized. No impairment charges were recognized for the years ended December 31, 2015, 2016, and 2017. |
Deposits and advances from customers | (o) Deposits and advances from customers Customer deposits: The Company collects deposits from corporate and institutional clients upon entering into negotiated contracts, and such amount is refundable at the end of the contract period provided no contract violations are noted. For individual customers, the Company collects additional amounts from them upon return of the rental vehicle based on the estimated repair and other relevant costs. In situations where the contract is violated or damage is caused to the vehicle, customer deposits received are used to offset expenses incurred in the period such incidents occur, and the excess amount is returned to customers. The customer deposits are classified as accrued expenses and other current liabilities on the consolidated balance sheets. The Company records a loss in the consolidated statements of comprehensive income if expenses incurred for repair exceed customer deposit amounts. Advances from customers: Individual customers pay in advance prior to the rental vehicle pick-up. Payments received from customers are initially recorded as advances from customers and are recognized as revenues when revenue recognition criteria are met. |
Revenue recognition | (p) Revenue recognition Revenue from car rentals and car services are generally recognized over the rental period. Revenue from the sale of gasoline is recognized when the vehicle is returned and is based on the actual volume of gasoline consumed or a contracted fee paid by the customer. For car rentals, payments are generally collected from customers in advance, and are recorded as advances from customers in the consolidated balance sheets until the revenue recognition criteria are met. Customers who purchase car services are generally on credit terms, and the initial credit evaluation is conducted before credit is extended. Revenue is recognized when collectability is reasonably assured and all other revenue recognition criteria are met. Occasionally, the Company engages contracted service providers in offering car services to its customers where the Company currently does not provide such services in certain cities or such services exceed the Company’s existing capacity. The end customers sign service contracts directly with the Company in such arrangements and the Company is the party responsible for customers’ acceptance for services rendered. In case of customer disputes, the Company resolves customer complaints and is solely responsible for refunding customers their payments. Therefore, the Company is considered the primary obligor in transactions involving the use of contracted service providers. The Company also determines the service fee and bears the credit risk. As a result, the Company recognizes revenue under contracted service provider arrangements on a gross basis. In the accompanying consolidated statements of comprehensive income, revenue is presented net of business tax, VAT and other related surcharges. Costs of revenue associated with car rentals and car services have not been presented separately as the Company cannot reasonably and reliably estimate and allocate expenses to each of the revenue streams. |
Lease Obligations | (q) Lease Obligations In accordance with ASC 840, Leases, leases for a lessee are classified at the inception date as either a capital lease or an operating lease. The Company assesses a lease to be a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property's estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. The capitalized lease obligation reflects the present value of future rental payments, discounted at the appropriate interest rates. The cost of the asset is amortized over the lease term. However, if ownership is transferred at the end of the lease term, the cost of the asset is amortized as set out under the property and equipment section of this note. Operating lease expenses are recognized on a straight-line basis over the applicable lease term. |
Net investment in direct financing leases | (r) Net investment in direct financing leases For leases where the Company is the lessor, a transaction is accounted for as a direct financing lease if the transaction satisfies one of the four capital lease conditions as discussed under the capital lease obligations in note 2(q), the collectability of the minimum lease payments is reasonably predictable, and there are no important uncertainties surrounding the amount of unreimbursable costs yet to be incurred by the Company under the lease. The net investment in the direct financing leases consists of the minimum lease payments, net of executory costs and profits thereon, unguaranteed residual value, accruing to the benefit of the Company and initial direct costs less unearned income. Over the period of a lease, each lease payment received is allocated between the repayment of the net investment in the lease and financing lease income based on the effective interest method so as to produce a constant rate of return on the balance of the net investment in the lease. The net investment in the direct financing leases is classified as current or non-current assets in the balance sheets based on the duration of the remaining lease terms. The Company records revenue attributable to direct financing leases so as to produce a constant rate of return on the balance of the net investment in the lease. Total direct financing leases revenues were RMB 7,197,316 10,140,216 3,875,346 |
Customer loyalty program | (s) Customer loyalty program The Company has a customer loyalty program where registered members earn points upon eligible purchases and such points can be redeemed for free rental periods, mileage upgrades, and other free gifts. The Company estimates the incremental costs associated with the Company’s future obligation to its customers, and records them as selling and marketing expense in the consolidated statements of comprehensive income. Unredeemed membership points are recorded in accrued expenses and other current liabilities in the consolidated balance sheets. The Company adjusts the liability associated with the customer loyalty program based on the Company’s estimate of future redemption of membership points prior to their expiration, which is three calendar years from the day the membership points are awarded. As of December 31, 2016 and 2017, the accrued liabilities associated with the customer loyalty program were RMB 7,185,774 9,048,815 |
Advertising costs | (t) Advertising costs The Company expenses advertising costs as incurred. Total advertising expenses were RMB 28,946,698 38,968,240 89,925,181 |
Taxation | (u) Taxation Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and tax credits, if any. 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 in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in which temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the statement of operations in the period of the enactment of the change. The Company has adopted ASU 2015-17 prospectively since January 1, 2017, deferred tax assets and liabilities are classified as non-current on the consolidated balance sheet. The Company 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 Company has considered 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 for a company operating in the car rental industry. The Company recognizes a tax benefit associated with an uncertain tax position when, in its judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, the Company initially and subsequently measures the tax benefit as the largest amount that the Company judges to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The Company’s liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation. Such adjustments are recognized entirely in the period in which they are identified. The Company’s effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. The Company classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. |
Government grants and subsidy income | (v) Government grants and subsidy income The Company receives government grants and subsidies in the PRC from various levels of local governments from time to time which are granted for general corporate purposes and to support its ongoing operations in the regions. These government subsidies are recorded as other operating income in the consolidated statement of comprehensive income in the period cash is received. For government grants that contain certain operating conditions, the amounts are recorded as liabilities when received, and are recognized in the consolidated statements of comprehensive income as a reduction of the related costs for which the grants are intended to compensate when the conditions are met. Government grants relating to property, plant and equipment are included in non-current liabilities as deferred government grants and are credited to the consolidated statements of comprehensive income as reductions to depreciation expense on a straight-line basis over the expected lives of the related assets. |
Fair value measurements | (w) Fair value measurements Fair value is 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 recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy 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. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, short-term loans receivable, accounts payable, advances from customers, certain accrued expenses and other current liabilities, and short-term and long-term debt. The carrying amounts of short-term financial instruments, excluding short-term debt, approximate their fair values due to the short-term maturity of these instruments. The carrying amounts of short-term debt as of December 31, 2016 and December 31, 2017 approximate their fair values as the interest rates they bear reflected the current quoted market yield for comparable debt (Level 2 inputs). The fair value of long-term borrowings is estimated based on quoted market rates as well as borrowing rates currently available for borrowings with a similar term, and the fair value of 2018 Senior Notes and 2022 Senior Notes are estimated based on the average of the bid and ask price as of December 31, 2016 and December 31, 2017 (Level 2 inputs). The fair values of long-term debts including long-term borrowings, 2018 Senior Notes and 2022 Senior Notes were RMB 3,214,860,166 4,770,908,702 As of December 31, 2016 As of December 31, 2017 Nominal Unpaid Aggregate Fair Value Nominal Unpaid Aggregate Fair Value Long-term borrowings, including current portion 1,747,583,173 1,755,993,820 831,202,361 833,969,309 2018 Senior Notes 1,387,400,000 1,458,866,346 1,306,840,000 1,332,252,796 2022 Senior Notes - - 2,613,680,000 2,604,686,597 Total long-term debt 3,134,983,173 3,214,860,166 4,751,722,361 4,770,908,702 |
Vehicle purchase deposits | (x) Vehicle purchase deposits The Company purchases vehicles through car dealers and makes advance payments in the ordinary course of business before title of vehicles are physically transferred to the Company. As the advance payments will be converted into property and equipment, which is a non-current asset, vehicle purchase deposits are accordingly classified as non-current assets on the consolidated balance sheets. |
Share-based compensation | (y) Share-based compensation The Company recognizes share-based compensation based on the grant date fair value of equity awards, with compensation expense, net of a forfeiture rate, recognized over the period in which the grantee is required to provide services to the Company in exchange for the equity award. Share-based compensation expense is recognized (i) immediately at the grant date for awards with no vesting conditions or (ii) using the straight-line method for awards with graded vesting features and service conditions only. Share-based compensation expense is classified in the consolidated statements of comprehensive income based upon the job function of the grantee. For the years ended December 31, 2015, 2016 and 2017, the Company recognized share-based compensation expense of RMB13,983,246, RMB16,040,947 and RMB13,588,843, respectively, as follows: For the years ended December 31, 2015 2016 2017 Cost of revenues 361,951 839,543 843,761 Selling and marketing expenses 894,680 401,498 336,139 General and administrative expenses 12,726,615 14,799,906 12,408,943 Total 13,983,246 16,040,947 13,588,843 |
Debt issuance costs and debt discounts | (z) Debt issuance costs and debt discounts The Company incurs costs in connection with debt issuance, such as legal and accounting fees. Debt issuance costs and debt discounts are initially recorded as direct deduction from the associated debt liability, and are amortized to interest expense over the term of the respective debt using the effective interest method. |
Earnings per share | (aa) Earnings per share Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights. Net loss is not allocated to other participating securities if based on their contractual terms they are not obligated to share in the losses. Diluted earnings per share is calculated by dividing net income attributable to common shareholders by the weighted average number of common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of shares issuable upon the exercise of share options using the treasury stock method. Common equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. Basic and diluted earnings per share are not reported separately for Class A or Class B common shares as each class of shares has the same rights to undistributed and distributed earnings. |
Segment reporting | (ab) Segment reporting In accordance with ASC 280, Segment Reporting, the Company’s chief operating decision maker, the Chief Executive Officer, reviews the 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. The Company’s long-lived assets are substantially all located in the PRC and substantially all of the Company’s revenues are derived from within the PRC. Therefore, no geographical segments are presented. |
Business Combinations | (ac) Business Combinations In accordance with ASC 805, Business Combinations, in business combinations not involving entities or businesses under common control, the Company measured the cost of an acquisition as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred and equity instruments issued. The transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to forecast the future cash inflows and outflows. Management determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Although management believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from the forecasted amounts and the difference could be material. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company |
Recently issued accounting standards | (ad) Recently issued accounting standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, "Revenue from Contracts with Customers," when In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”. This ASU amends existing guidance to require that deferred income tax liabilities and assets be classified as noncurrent in a classified balance sheet, and eliminates the prior guidance which required an entity to separate deferred tax liabilities and assets into a current amount and a noncurrent amount in a classified balance sheet. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual period. Additionally, the new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Group has adopted ASU 2015-17 in 2017 using the prospective method and all deferred taxes have been classified as noncurrent in the balance sheet as of December 31, 2017. In February 2016, the FASB issued ASU 2016-02, “ Leases” In March 2016, the FASB issued an ASU 2016-09 “Improvements to Employee Share-based Payment Accounting”, which amends ASC Topic 718, Compensation Stock Compensation. The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Group has adopted the standard in 2017 and the impact of adopting this pronouncement was not material to the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326), to provide financial statement users with more useful information about expected credit losses. ASU 2016-13 also changes how entities measure credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, and early adoption is permitted for periods beginning after December 15, 2018. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements and associated disclosures. In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230): “Classification of Certain Cash Receipts and Cash Payments”. The standard is intended to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 will be effective for fiscal years beginning after December 15, 2017. Early adoption is permitted for all entities. The Company is in the process of evaluating the impact of this guidance on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows: Restricted Cash”. The standard addresses the diversity in practice that exists in the classification and presentation of changes in restricted cash and requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. The Company is in the process of evaluating the impact of ASU 2016-18 on its consolidated financial statements. In November, 2016, the FASB issued Accounting Standards Update No. 2016-18 (ASU 2016-18), “Statement of Cash Flows”, which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The ASU is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company is in the process of evaluating the impact of ASU 2016-18 on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”), which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of ASU 2017-01 and anticipates the adoption had no material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Simplifies Goodwill Impairment Test” (“ASU 2017-04”), which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of the second step of the goodwill impairment test. As a result, under the ASU, “an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.” The ASU is effective prospectively for fiscal years beginning after December 15, 2019. The Company is in the process of evaluating the impact of ASU 2017-04 on its consolidated financial statements. |
ORGANIZATION AND DESCRIPTION 33
ORGANIZATION AND DESCRIPTION OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | |
Schedule of company's principal subsidiaries | On August 3, 2007, eHi Car Services Limited (the “Company”), formerly known as Prudent Choice Limited or eHi Auto Services Limited, was incorporated in the Cayman Islands by Ray Ruiping Zhang (the “Founder”). The Company, through its subsidiaries, provides car rentals and car services to corporate and individual customers in the People’s Republic of China (“PRC”). The Company and its subsidiaries began offering services in 2006 through Shanghai eHi Business Co., Ltd. (“eHi Business”), which was incorporated on January 11, 2006. The Company’s business initially focused on providing car services to premium corporate and institutional clients. In May 2008, the Company began to provide car rentals to individual customers. To further expand the Company’s internet and mobile services, the Company entered into a series of contractual arrangements in March 2014 with its PRC-incorporated variable interest entity (“VIE”) Shanghai eHi Information Technology Service Co., Ltd. (“eHi Information”) and its shareholders. eHi Information obtained a telecommunication business operating license (“ICP license”) from the relevant telecommunication authorities on September 24, 2014. eHi Information currently does not have any material operations. In January 2015, the Company entered into a series of contractual arrangements with its PRC-incorporated VIE Shanghai eHi Car Sharing Information Technology Co., Ltd. (“eHi Car Sharing”) and its shareholders. eHi Car Sharing is currently testing its new business initiative as an online platform for peer-to-peer car rental between private vehicle owners and individual customers. eHi Car Sharing is currently not yet in operation and the Company does not expect it to contribute a material portion of its net revenues and operations in the foreseeable future. As of December 31, 2017, the Company and its principal subsidiaries and VIEs are as follows: Percentage of Date of Place of Parent company and offshore holding companies eHi Car Services Limited (“Company”) Parent August 3, 2007 Caymans eHi Auto Services (Hong Kong) Holding Limited (“eHi Hong Kong”) 100% September 24, 2010 Hong Kong L&L Financial Leasing Holding Limited 100% October 17, 2013 Hong Kong Brave Passion Limited (“Brave Passion”) 100% May 26, 2015 British Virgin Islands Wholly owned subsidiaries Shuzhi Information Technology (Shanghai) Co., Ltd. (“Shuzhi”) 100% March 21, 2008 PRC Shanghai eHi Car Rental Co., Ltd. (“eHi Rental”) 100% March 10, 2008 PRC Beijing eHi Car Rental Co., Ltd. (subsidiary of eHi Rental) 100% August 20, 2008 PRC Chongqing eHi Car Rental Co., Ltd. (subsidiary of eHi Rental) 100% December 5, 2009 PRC Shanghai Smart Brand Auto Driving Services Co., Ltd (“Shanghai Smart Brand,” subsidiary of Shuzhi) 100% April 13, 2011 PRC eHi Auto Services (Jiangsu) Co., Ltd. (subsidiary of eHi Hong Kong) 100% December 23, 2011 PRC Shanghai eHi Chengshan Car Rental Co., Ltd. (subsidiary of eHi Rental) 100% August 16, 2012 PRC Shanghai Taihan Trading Co., Ltd. 100% November 10, 2013 PRC Shanghai Taihao Financial Leasing Co., Ltd. 100% January 7, 2014 PRC Shanghai Taide Financial Leasing Co., Ltd. 100% June 23, 2014 PRC eHi Car Rental Management Services (Shanghai) Co., Ltd (subsidiary of eHi Rental) 100% November 10, 2015 PRC Consolidated variable interest entities (“VIEs”) Shanghai eHi Information Technology Service Co., Ltd. (“eHi Information”) 100% March 13, 2014 PRC Shanghai eHi Car Sharing Information Technology Co., Ltd. (“eHi Car Sharing”) 100% January 12, 2015 PRC |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives of property and equipment | Category Estimated useful lives Vehicles 1-4 years In-car equipment 3 years Office furniture and equipment 5 years Software 3 - 5 years Building 39 years Leasehold improvements Over the shorter of the lease term or the estimated useful life - 1-5 years |
Schedule of the fair value of financial instruments | As of December 31, 2016 As of December 31, 2017 Nominal Unpaid Aggregate Fair Value Nominal Unpaid Aggregate Fair Value Long-term borrowings, including current portion 1,747,583,173 1,755,993,820 831,202,361 833,969,309 2018 Senior Notes 1,387,400,000 1,458,866,346 1,306,840,000 1,332,252,796 2022 Senior Notes - - 2,613,680,000 2,604,686,597 Total long-term debt 3,134,983,173 3,214,860,166 4,751,722,361 4,770,908,702 |
Schedule of share-based compensation expense | For the years ended December 31, 2015 2016 2017 Cost of revenues 361,951 839,543 843,761 Selling and marketing expenses 894,680 401,498 336,139 General and administrative expenses 12,726,615 14,799,906 12,408,943 Total 13,983,246 16,040,947 13,588,843 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | RMB Net assets 45,374 Identifiable intangible assets vehicles plates 4,246,166 Deferred tax liabilities (1,061,542) Total 3,229,998 |
ALLOWANCE FOR DOUBTFUL ACCOUN36
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS. | |
Schedule of movement of the allowance for doubtful accounts receivable | For the years ended December 31, 2015 2016 2017 Balance, beginning of the year 5,969,648 7,611,244 9,159,321 Provision for doubtful accounts 1,641,596 1,548,077 5,288,403 Balance, end of the year 7,611,244 9,159,321 14,447,724 |
PREPAID EXPENSES AND OTHER CU37
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS. | |
Schedule of prepaid expenses and other current assets | As of December 31, 2016 2017 Value-added taxes deductible 311,501,214 774,435,385 Receivables from disposal of vehicles 127,915,314 350,629,000 Prepaid insurance expense 115,498,191 197,256,868 Staff advances 18,060,202 36,404,467 Brand Marketing Prepayments - 30,700,380 Prepaid gasoline and repair supplies 17,481,886 26,685,176 Prepaid rental expenses 13,964,546 17,309,920 Rental deposits 11,137,408 16,301,592 Net investment in direct financing leases, current portion 63,999,571 10,226,920 Others 48,229,013 45,907,304 Total 727,787,345 1,505,857,012 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | As of December 31, 2016 2017 Vehicles 5,926,576,864 7,775,410,903 In-car equipment 37,670,565 52,443,083 Building 55,587,304 55,587,304 Leasehold improvements 32,752,237 44,056,477 Software 12,211,763 14,051,492 Office furniture and equipment 33,463,933 44,782,752 Property and equipment subject to depreciation 6,098,262,666 7,986,332,011 Less: accumulated depreciation (1,127,934,340) (1,358,334,657) Subtotal 4,970,328,326 6,627,997,354 Construction in progress 753,240,849 429,047,963 Property and equipment, net 5,723,569,175 7,057,045,317 |
SHORT-TERM DEBT (Tables)
SHORT-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHORT-TERM DEBT | |
Schedule of Debt, Current | As of December 31, 2016 2017 Short-term borrowings 620,105,995 928,846,417 Long-term borrowings, current portion (Note 10) 306,113,338 1,728,599,440 Total 926,219,333 2,657,445,857 |
Schedule of short-term borrowings | As of December 31, 2016 2017 Notes payable 363,983,800 253,259,200 Short-term bank borrowings guaranteed by the Founder and his spouse 75,000,000 - Short-term bank borrowings 181,122,195 675,587,217 Total short-term bank borrowings 620,105,995 928,846,417 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LONG-TERM DEBT | |
Schedule of long-term borrowings, including current portion | As of December 31, 2016 2017 Long-term borrowings collateralized by vehicles 292,605,866 213,703,954 Long-term bank borrowings collateralized by receivables 189,427,307 40,995,042 Entrusted long-term borrowing from a related party 100,000,000 100,000,000 Long-term borrowings from banks or financing companies 125,000,000 476,503,365 Syndicated loan 1,010,689,797 - 2018 Senior Notes 1,356,213,357 1,292,029,030 2022 Senior Notes - 2,562,424,523 Subtotal 3,073,936,327 4,685,655,914 Less: Current portion of long-term debt (306,113,338) (1,728,599,440) Total long-term debt 2,767,822,989 2,957,056,474 |
Schedule of future principle maturities of long-term debt | Years Ended December 31, Amount (RMB) 2018 1,743,425,515 2019 238,098,275 2020 156,518,571 2022 2,613,680,000 Total 4,751,722,361 |
ACCOUNTS PAYABLE (Tables)
ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS PAYABLE | |
Schedule of accounts payable | As of December 31, 2016 2017 Payables for purchase of property and equipment 163,190,564 576,569,163 Others 16,687,283 41,300,848 Total 179,877,847 617,870,011 |
ACCRUED EXPENSES AND OTHER CU42
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2016 2017 Advance from customers 68,397,492 105,716,286 Customer deposits 55,991,264 78,975,251 Accrued employee payroll and welfare 57,367,892 72,103,194 Interest accrued 8,530,203 63,982,199 Other tax payable 15,471,552 25,092,518 Provision for customer loyalty program 7,185,774 9,048,815 Accrued professional service fees 4,316,185 7,761,195 Accrued advertising and promotion expense 17,306,922 5,785,785 Payable for property related purchase 11,354,874 - Others 22,569,229 65,421,499 Total 268,491,387 433,886,742 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TAXATION | |
Schedule of components of pre-tax income (loss) | For the years ended December 31, 2015 2016 2017 Pre-tax income from domestic (PRC) entities 5,669,944 248,923,620 261,743,051 Pre-tax income (loss) from foreign (non-PRC) entities 778,156,851 (209,177,533) (92,151,762) Total pre-tax income 783,826,795 39,746,087 169,591,289 |
Schedule of components of current and deferred portions of income tax expense included in the consolidated statements of operations and comprehensive income (loss) | For the years ended December 31, 2015 2016 2017 Current income tax expense Domestic (PRC) entities 1,408,703 3,049,504 1,152,383 Foreign (non-PRC) entities - - - Total 1,408,703 3,049,504 1,152,383 Deferred income tax expense Domestic (PRC) entities - (2,489,648) 29,066,413 Foreign (non-PRC) entities - - - Total - (2,489,648) 29,066,413 Income tax expense (excluding withholding tax) Domestic (PRC) entities 1,408,703 559,855 30,218,796 Withholding tax Foreign (non-PRC) entities 86,079,287 6,051,116 17,156,250 Total income tax expense 87,487,990 6,610,971 47,375,046 |
Reconciliation of the differences between statutory CIT rate and the effective tax rate | For the Years Ended December 31, 2015 2016 2017 Statutory income tax rate 25.0 % 25.0 % 25.0 % Different tax rates in other jurisdictions (26.0) % 90.8 % 13.3 % Withholding tax 10.6 % 15.2 % 10.1 % Permanent differences 0.1 % (17.1) % 0.9 % Change in valuation allowance 1.1 % (97.5) % (21.2) % Tax holiday 0.2 % (0.2) % Other 0.4 % Effective tax rate 11.2 % 16.6 % 27.9 % |
Schedule of significant components of deferred tax assets | As of December 31, 2016 2017* Current* Deferred tax assets: Accrued payroll and other expenses 598,246 - Allowance for doubtful accounts 2,289,830 - Deferred government grant income 2,151,411 - Others 11,950 - Less: valuation allowance (3,211,464) - Total current deferred tax assets, net 1,839,973 - Non-current Deferred tax assets: Accrued payroll and other expenses - 38,886,321 Allowance for doubtful accounts - 3,611,931 Net operating loss carry forwards 55,724,899 40,279,987 Less: valuation allowance (35,963,269) (3,143,454) Total non-current deferred tax assets, net 19,761,630 79,634,785 Deferred tax liabilities, Temporary difference on property and equipment 19,111,955 90,793,841 Deferred revenue - 15,417,709 Recognition of intangible assets arisen from business combination 1,061,542 1,061,542 Total non-current deferred tax liability 20,173,497 107,273,092 |
Classification Of Deferred Tax AssetsLiabilities ,Consolidated Balance Sheet | Classification in the consolidated balance sheets: As of December 31, 2016 2017* Current deferred tax assets, net* 1,839,973 - Non-current deferred tax assets, net 649,675 - Non-current deferred tax liability, net 1,061,542 27,638,307 * The Company has adopted ASU 2015-17 prospectively since January 1, 2017. |
Schedule of movement of valuation allowance | 2015 2016 2017 Balance at beginning of the year 89,697,127 89,738,490 39,174,733 Additions in current year 25,374,784 3,128,771 456,508 Reversals in current year (25,210,766) (53,692,038) (36,482,572) Expirations in current year (122,655) (490) (5,215) Balance at the end of the year 89,738,490 39,174,733 3,143,454 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER INCOME (EXPENSE), NET | |
Schedule of other income (expense) | For the Years Ended December 31, 2015 2016 2017 American Depositary Receipt reimbursement 9,917,716 - - Tax refund - 979,794 518,171 Others 287,559 464,335 1,438,848 Total 10,205,275 1,444,129 1,957,019 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | |
Schedule of Share-based Compensation, Activity | Number of Weighted Weighted Aggregate Options outstanding at December 31, 2014 5,136,900 3.76 1.95 5,425,522 Exercised (138,700) 2.20 Cancelled and forfeited (98,200) 6.86 Options outstanding at December 31, 2015 4,900,000 3.74 1.59 13,356,070 Exercised (1,726,874) 2.20 Cancelled and forfeited (17,626) 6.97 Options outstanding at December 31, 2016 3,155,500 4.57 1.64 2,801,660 Cancelled and forfeited (51,500) 7.00 Options outstanding at December 31, 2017 3,104,000 4.53 1.16 5,277,775 Vested and expected to vest at December 31, 2017 3,103,965 4.53 1.16 5,277,775 Exercisable at December 31, 2017 2,775,000 4.30 1.12 5,144,025 |
Schedule summarizes restricted shares activities | Number of Restricted Shares Weighted Average Grant-date Fair Unvested at January 1, 2015 337,500 6.99 Vested (112,500) 6.99 Unvested at December 31, 2015 225,000 6.99 Vested (112,500) 6.99 Unvested at December 31, 2016 112,500 6.99 Expected to vest at December 31, 2016 112,500 6.99 Vested (112,500) 6.99 Unvested at December 31, 2017 - - |
2014 Plan | |
SHARE-BASED COMPENSATION | |
Schedule of Share-based Compensation, Activity | Number of Weighted Weighted Aggregate Weighted Options outstanding at January 1, 2015 Granted 525,000 5.35 2.86 Cancelled and forfeited (16,000) 5.35 Options outstanding at December 31, 2015 509,000 5.35 9.38 481,005 Cancelled and forfeited (8,000) 5.35 Options outstanding at December 31, 2016 501,000 5.35 8.38 Exercised (27,000) 5.35 Cancelled and forfeited (71,000) 5.35 Options outstanding at December 31, 2017 403,000 5.35 7.38 175,305 Vested and expected to vest at December 31, 2017 396,226 5.35 7.38 172,358 Exercisable at December 31, 2017 201,500 5.35 7.38 87,653 |
Significant assumptions used for estimating fair value of stock options | For the Year Ended Risk-free rate 2.14 % Option term 10 years Volatility 55 % Dividend yield 0.00 % Exercise multiple 2/2.5 Expected forfeiture rate (post-vesting) 0%/10 %* *0%/10% post-vesting forfeiture rate of which the executive level is 0 10 |
Schedule summarizes restricted shares activities | Unvested Restricted Share Units Number of Restricted Share Units Weighted Average Grant-date Fair Unvested at January 1, 2017 - - Granted 6,000 5.11 Vested (3,000) 5.11 Unvested at December 31, 2017 3,000 5.11 Expected to vest at December 31, 2017 2,502 5.11 |
INCOME PER SHARE (Tables)
INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME(LOSS) PER SHARE | |
Schedule of computation of basic and diluted net income (loss) per share | For the Years Ended December 31, 2015 2016 2017 RMB RMB RMB Numerator: Net income : 696,338,805 33,135,116 122,216,243 Numerator for basic and diluted net income per share 696,338,805 33,135,116 122,216,243 Denominator: Denominator for basic calculation-weighted average number of common shares outstanding 126,758,363 137,621,702 138,794,624 Dilutive effect of share options 1,593,216 897,122 758,702 Dilutive effect of restricted shares and restricted share units 52,298 33,207 40,591 Denominator for diluted income per share calculation 128,403,877 138,552,031 139,593,917 Basic net income per share attributable to the Company’s common shareholders 5.49 0.24 0.88 Diluted net income per share attributable to the Company’s common shareholders 5.42 0.24 0.88 Basic net income per ADS* 10.99 0.48 1.76 Diluted net income per ADS* 10.85 0.48 1.75 * Each ADS represents two Class A common shares. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES. | |
Schedule of future minimum lease payments | Year ending December 31, (RMB) 2018 51,630,688 2019 27,830,356 2020 9,609,139 2021 6,110,999 2022 3,012,326 Thereafter 852,333 99,045,841 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS | |
Schedule of significant balances with related parties | As of December 31, 2016 2017 Due from a related party, current: Receivables due from Ctrip 1,755,889 83,323,718 Due to a related party, current: Payables due to Ctrip 16,083,610 210,833 Due to a related party, current: Borrowing due to Ctrip 100,000,000 100,000,000 |
CONDENSED FINANCIAL INFORMATI49
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
BALANCE SHEETS | BALANCE SHEETS As of December 31, 2016 2017 RMB RMB US$ (Note 2(d)) ASSETS Current assets: Cash and cash equivalents 4,271 4,023 618 Restricted cash 10,733,202 Amounts due from subsidiaries 6,717,714,285 7,959,314,970 1,223,324,312 Prepaid expenses and other current assets 4,208,266 3,609,637 554,791 Total current assets 6,732,660,024 7,962,928,630 1,223,879,721 Investments in subsidiaries and VIEs 192,995,609 29,662,882 Total assets 6,732,660,024 8,155,924,239 1,253,542,603 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt 1,292,029,030 198,581,226 Accrued expenses and other current liabilities 8,678,123 78,150,364 12,011,491 Income tax payable 4,169,661 16,773,553 2,578,048 Total current liabilities 12,847,784 1,386,952,947 213,170,765 Long-term debt 2,366,903,154 2,562,424,523 393,837,438 Deficits in subsidiaries and VIEs 361,779,545 Total liabilities 2,741,530,483 3,949,377,470 607,008,203 Shareholders’ equity: Common shares, US$0.001 par value, 500,000,000 and 500,000,000 (including 407,328,619 Class A and 92,671,381 Class B) shares authorized, 138,860,287 (including 67,547,921 Class A and 71,312,366 Class B) and 138,890,287 (including 73,251,730 Class A and 65,638,557 Class B) shares issued and outstanding as of December 31, 2016 and December 31, 2017, respectively 878,463 878,663 135,048 Additional paid-in capital 4,474,702,198 4,489,246,326 689,984,527 Accumulated other comprehensive income 43,201,465 121,858,122 18,729,250 Accumulated deficit (527,652,585) (405,436,342) (62,314,425) Total shareholders’ equity 3,991,129,541 4,206,546,769 646,534,400 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 6,732,660,024 8,155,924,239 1,253,542,603 |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2015 2016 2017 RMB RMB RMB US$ (Note 2(d)) Operating expenses: General and administrative expenses (21,426,624) (25,424,596) (31,013,301) (4,766,657) Loss from operations (21,426,624) (25,424,596) (31,013,301) (4,766,657) Interest income: Third party 3,537,155 760 117 Subsidiaries 41,696,607 184,327,276 28,330,583 Total interest income 45,233,762 184,328,036 28,330,700 Interest expense (6,905,640) (128,065,737) (216,816,430) (33,324,075) Early extinguishment of debt costs (19,976,776) (3,070,374) Gain from sale of cost method investment 803,059,728 Share of gain of subsidiaries and VIEs (2,227,088) 147,442,803 222,850,964 34,251,566 Other income 9,917,716 Income before income taxes 782,418,092 39,186,232 139,372,493 21,421,160 Provision for income taxes (86,079,287) (6,051,116) (17,156,250) (2,636,867) Net income 696,338,805 33,135,116 122,216,243 18,784,293 Net income 696,338,805 33,135,116 122,216,243 18,784,293 Changes in cumulative foreign currency translation adjustment, net of tax of nil 73,410,193 (31,353,357) 78,656,657 12,089,307 Comprehensive income 769,748,998 1,781,759 200,872,900 30,873,600 |
STATEMENTS OF CASH FLOWS | For the Years Ended December 31, 2015 2016 2017 RMB RMB RMB US$ (Note 2(d)) Net cash provided by operating activities Net cash used in investing activities Net cash used in financing activities: Effect of exchange rate changes on cash and cash equivalents 230 273 (248) (38) Net increase (decrease) in cash and cash equivalents 230 273 (248) (38) Cash and cash equivalents-beginning of year 3,768 3,998 4,271 656 Cash and cash equivalents-end of year 3,998 4,271 4,023 618 Supplemental disclosure for cash flow information: Cash paid for interest Cash paid for income taxes For the Years Ended December 31, 2015 2016 2017 RMB RMB RMB US$ (Note 2(d)) Supplemental disclosure of non-cash investing and financing activities: Payment for IPO issuance costs (cash paid by a subsidiary of the Company on behalf of the Company) (20,656,597) Proceeds from issuance of Class A common shares in private placement, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) 792,860,341 Proceeds from exercise of share options (cash received by a subsidiary of the Company on behalf of the Company) 4,891,204 25,431,373 955,485 146,855 Proceeds of issuance of the 2018 Senior Notes, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) 1,241,289,905 Repayment of syndicated loan(cash paid by a subsidiary of the Company on behalf of the Company) (1,000,335,000) (153,748,674) Proceeds of issuance of the 2022 Senior Notes, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) 2,611,624,352 401,399,313 Payment for Senior Notes issuance costs (cash paid by a subsidiary of the Company on behalf of the Company) (2,740,945) Proceeds of US$150 million syndicated loan, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) 957,158,701 Proceeds from sale of cost method investment, net of related transaction costs (cash received by a subsidiary of the Company on behalf of the Company) 954,428,056 Payment of professional fees for aborted offerings (cash paid by a subsidiary of the Company on behalf of the Company) (1,748,969) (268,812) Accrued professional fees for issuance of Senior Notes 2,740,945 Accrued professional fees for aborted offering 2,174,451 334,207 Subscription receivables related to share option exercise 197,816 |
ORGANIZATION AND DESCRIPTION 50
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) $ / shares in Units, $ in Millions | May 22, 2015USD ($)$ / sharesshares | Nov. 18, 2014USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Organization | ||||||
Issuance costs | ¥ 20,656,597 | |||||
ADS | IPO | ||||||
Organization | ||||||
Shares issued (in shares) | 10,000,000 | |||||
Issue price of shares (in dollars per share) | $ / shares | $ 12 | |||||
Gross proceeds from initial public offering | $ | $ 120 | |||||
ADS | Private placements | ||||||
Organization | ||||||
Issue price of shares (in dollars per share) | $ / shares | $ 12 | |||||
Class A Common Shares | Private placements | ||||||
Organization | ||||||
Shares issued (in shares) | 22,337,924 | 8,333,332 | ||||
Issue price of shares (in dollars per share) | $ / shares | $ 6 | $ 6 | ||||
Gross proceeds from private placement | $ | $ 134 | $ 50 | ||||
Issuance costs | $ | $ 4.3 | |||||
Class B Common Shares | ||||||
Organization | ||||||
Total outstanding preferred shares (in shares) converted upon initial public offering | 77,999,069 | |||||
Total outstanding common shares (in shares) converted upon initial public offering | 6,096,842 | |||||
eHi Hong Kong | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
L&L Financial Leasing Holding Limited | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Brave Passion | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Shuzhi | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
eHi Rental | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Beijing eHi Car Rental Co., Ltd. | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Chongqing eHi Car Rental Co., Ltd. | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Shanghai Smart Brand | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
eHi Auto Services (Jiangsu) Co., Ltd. | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Shanghai eHi Chengshan Car Rental Co., Ltd. | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Shanghai Taihan Trading Co., Ltd. | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Shanghai Taihao Financial Leasing Holding Limited | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
Shanghai Taide Financial Leasing Co., Ltd. | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
eHi Car Rental Management Services (Shanghai) Co., Ltd. | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
eHi Information | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% | ||||
eHi Car Sharing | ||||||
Organization | ||||||
Percentage of ownership | 100.00% | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Translations of amounts from RMB into US$ | 6.5342 | 6.9370 | |
Average translation of amounts from RMB into US$ | 6.7547 | 6.6401 | 6.2284 |
Minimum | |||
Payment term to corporate and institutional clients | 5 days | ||
Maximum | |||
Payment term to corporate and institutional clients | 120 days | ||
Parent company | |||
Certificated Exchange Rate for Convenience of Readers | 6.5063 |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | |
Significant Accounting Policies | ||||||
Loss on disposal of vehicles and held-for-reclassification | ¥ 24,241,209 | ¥ 1,848,313 | ¥ 5,055,620 | |||
Impairment of intangible assets and long-lived assets | ||||||
Impairment of long-lived assets | $ | $ 0 | $ 0 | $ 0 | |||
Net investment in direct financing leases | ||||||
Total direct financing leases revenues | 3,875,346 | 10,140,216 | ¥ 7,197,316 | |||
Car rental operating licenses and vehicle license plates | ||||||
Significant Accounting Policies | ||||||
Gross carrying value | ¥ 66,505,752 | ¥ 64,101,470 | ||||
In-car equipment | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 3 years | 3 years | ||||
Office furniture and equipment | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 5 years | 5 years | ||||
Building | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 39 years | 39 years | ||||
Minimum | ||||||
Significant Accounting Policies | ||||||
Holding period for vehicles subject to the repurchase programs | 12 months | 12 months | ||||
Minimum | Vehicles | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 1 year | 1 year | ||||
Minimum | Software | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 3 years | 3 years | ||||
Minimum | Leasehold improvements | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 1 year | 1 year | ||||
Maximum | ||||||
Significant Accounting Policies | ||||||
Holding period for vehicles subject to the repurchase programs | 24 months | 24 months | ||||
Maximum | Vehicles | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 4 years | 4 years | ||||
Maximum | Software | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 5 years | 5 years | ||||
Maximum | Leasehold improvements | ||||||
Significant Accounting Policies | ||||||
Estimated useful lives | 5 years | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Customer Loyalty Program | |||
Provision for customer loyalty program | ¥ 9,048,815 | ¥ 7,185,774 | |
Advertising costs | |||
Total advertising expenses | 89,925,181 | 38,968,240 | ¥ 28,946,698 |
Fair value measurements | |||
Nominal Unpaid Principal Balance | 4,751,722,361 | 3,134,983,173 | |
Level 2 | |||
Fair value measurements | |||
Aggregate Fair Value | 4,770,908,702 | 3,214,860,166 | |
Aggregate Fair Value | Level 2 | |||
Fair value measurements | |||
Aggregate Fair Value | 4,770,908,702 | 3,214,860,166 | |
Long-term borrowings, including current portion | |||
Fair value measurements | |||
Nominal Unpaid Principal Balance | 831,202,361 | 1,747,583,173 | |
Long-term borrowings, including current portion | Aggregate Fair Value | Level 2 | |||
Fair value measurements | |||
Aggregate Fair Value | 833,969,309 | 1,755,993,820 | |
2018 Senior Notes | |||
Fair value measurements | |||
Nominal Unpaid Principal Balance | 1,306,840,000 | 1,387,400,000 | |
2018 Senior Notes | Aggregate Fair Value | Level 2 | |||
Fair value measurements | |||
Aggregate Fair Value | 1,332,252,796 | 1,458,866,346 | |
2022 Senior Notes | |||
Fair value measurements | |||
Nominal Unpaid Principal Balance | 2,613,680,000 | 0 | |
2022 Senior Notes | Aggregate Fair Value | Level 2 | |||
Fair value measurements | |||
Aggregate Fair Value | ¥ 2,604,686,597 | ¥ 0 |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based compensation | |||
Total | ¥ 13,588,843 | ¥ 16,040,947 | ¥ 13,983,246 |
Cost of revenues | |||
Share-based compensation | |||
Total | 843,761 | 839,543 | 361,951 |
Selling and marketing expenses | |||
Share-based compensation | |||
Total | 336,139 | 401,498 | 894,680 |
General and administrative expenses | |||
Share-based compensation | |||
Total | ¥ 12,408,943 | ¥ 14,799,906 | ¥ 12,726,615 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - Hangzhou Deyu Car Dealing Services Co Ltd | 1 Months Ended |
Mar. 31, 2016CNY (¥) | |
Business Acquisition [Line Items] | |
Net assets | ¥ 45,374 |
Identifiable intangible assets vehicles plates | 4,246,166 |
Deferred tax liabilities | (1,061,542) |
Total | ¥ 3,229,998 |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Business Combination, Consideration Transferred | ¥ 3,229,998 |
ALLOWANCE FOR DOUBTFUL ACCOUN56
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Balance, beginning of the year | ¥ 9,159,321 | ¥ 7,611,244 | ¥ 5,969,648 | |
Provision for doubtful accounts | 5,288,403 | $ 812,813 | 1,548,077 | 1,641,596 |
Balance, end of the year | ¥ 14,447,724 | ¥ 9,159,321 | ¥ 7,611,244 |
SHORT-TERM LOAN RECEIVABLE (Det
SHORT-TERM LOAN RECEIVABLE (Details) - Shanghai Chenghuan - Short-term notes receivable, through entrusted bank loans - CNY (¥) | 1 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2017 | Jun. 30, 2016 | Jan. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes receivable from Shanghai Chenghuan, through entrusted bank loans | ¥ 50,000,000 | ¥ 50,000,000 | ||
Interest rate | 10.00% | 7.75% | 7.75% | |
Period of the option to convert its creditor rights into equity interests after commencement | 2 years | |||
Loans Receivable Collateral Percentage | 100.00% | 100.00% |
PREPAID EXPENSES AND OTHER CU58
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Value-added taxes deductible | ¥ 774,435,385 | ¥ 311,501,214 | |
Receivables from disposal of vehicles | 350,629,000 | 127,915,314 | |
Prepaid insurance expense | 197,256,868 | 115,498,191 | |
Staff advances | 36,404,467 | 18,060,202 | |
Brand Marketing Prepayments | 30,700,380 | 0 | |
Prepaid gasoline and repair supplies | 26,685,176 | 17,481,886 | |
Prepaid rental expenses | 17,309,920 | 13,964,546 | |
Rental deposits | 16,301,592 | 11,137,408 | |
Net investment in direct financing leases, current portion | 10,226,920 | 63,999,571 | |
Others | 45,907,304 | 48,229,013 | |
Total | ¥ 1,505,857,012 | $ 231,445,985 | ¥ 727,787,345 |
INVESTMENTS (Details)
INVESTMENTS (Details) | Jun. 24, 2015CNY (¥) | Jun. 24, 2015USD ($) | Jun. 02, 2015CNY (¥) | Jun. 02, 2015USD ($) | Jan. 27, 2015CNY (¥)shares | Jan. 27, 2015USD ($)shares | Apr. 30, 2014CNY (¥)shares | Apr. 30, 2014USD ($)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) |
Investment | |||||||||||||
Proceeds from waiver of warrants | ¥ 18,409,199 | ||||||||||||
Gain from waiver of warrants | 0 | 0 | 0 | 16,869,935 | |||||||||
Gain from sale of cost method investment | ¥ 0 | $ 0 | 0 | 803,059,728 | |||||||||
Cost Method Investments, Capital Contribution Description | Pursuant to the Partnership Agreement, the total capital commitment to Ningbo eHi Ruiji by May 1, 2047 is expected to be RMB60,000,000, of which RMB59,990,000 is to be contributed by Ningbo Haichao and RMB10,000 is to be contributed by Yinzhou Ningyituiji. Ningbo eHi Ruiji would be managed by Yinzhou Ningyituiji. | Pursuant to the Partnership Agreement, the total capital commitment to Ningbo eHi Ruiji by May 1, 2047 is expected to be RMB60,000,000, of which RMB59,990,000 is to be contributed by Ningbo Haichao and RMB10,000 is to be contributed by Yinzhou Ningyituiji. Ningbo eHi Ruiji would be managed by Yinzhou Ningyituiji. | |||||||||||
Payments To Acquire Cost Method Investment | ¥ 10,800,000 | $ 1,659,930 | |||||||||||
Travice Inc | Series B Preferred Stock | |||||||||||||
Investment | |||||||||||||
Percentage of shares acquired | 8.40% | 8.40% | |||||||||||
Payments to Acquire Investments | ¥ 154,251,500 | $ 25,000,000 | |||||||||||
Travice Inc | Series C Preferred Stock | |||||||||||||
Investment | |||||||||||||
Number of warrants acquired to purchase additional shares | 4,684,074 | 4,684,074 | |||||||||||
Number of warrants waived to purchase additional shares | 4,684,074 | 4,684,074 | |||||||||||
Proceeds from waiver of warrants | ¥ 18,409,199 | $ 3,000,000 | |||||||||||
Gain from waiver of warrants | ¥ 16,869,935 | $ 2,749,158 | |||||||||||
Elite Plus | |||||||||||||
Investment | |||||||||||||
Equity interest transferred (as a percent) | 100.00% | 100.00% | |||||||||||
Gross proceeds | ¥ 983,621,925 | $ 160,875,000 | |||||||||||
Gain from sale of cost method investment | ¥ 803,059,728 | $ 131,352,744 | |||||||||||
Transaction costs from sale of cost method investment | ¥ 29,193,869 | $ 4,773,098 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | |
Property and Equipment, Net | ||||
Property and equipment subject to depreciation | ¥ 7,986,332,011 | ¥ 6,098,262,666 | ||
Less: accumulated depreciation | (1,358,334,657) | (1,127,934,340) | ||
Subtotal | 6,627,997,354 | 4,970,328,326 | ||
Construction in progress | 429,047,963 | 753,240,849 | ||
Property and equipment, net | 7,057,045,317 | 5,723,569,175 | $ 1,084,648,005 | |
Vehicles | ||||
Property and Equipment, Net | ||||
Property and equipment subject to depreciation | 7,775,410,903 | 5,926,576,864 | ||
In-car equipment | ||||
Property and Equipment, Net | ||||
Property and equipment subject to depreciation | 52,443,083 | 37,670,565 | ||
Building | ||||
Property and Equipment, Net | ||||
Property and equipment subject to depreciation | 55,587,304 | |||
Leasehold improvements | ||||
Property and Equipment, Net | ||||
Property and equipment subject to depreciation | 44,056,477 | 32,752,237 | ||
Software | ||||
Property and Equipment, Net | ||||
Property and equipment subject to depreciation | 14,051,492 | 12,211,763 | ||
Office furniture and equipment | ||||
Property and Equipment, Net | ||||
Property and equipment subject to depreciation | 44,782,752 | 33,463,933 | ||
Vehicles and in-car equipment | ||||
Property and Equipment, Net | ||||
Depreciation expenses | 742,259,659 | 654,654,545 | ¥ 457,478,811 | |
Collateral to secure certain long-term borrowing arrangements | 210,460,414 | 465,073,020 | ||
DebtInstrumentCollateralAmount | 210,460,414 | 465,073,020 | ||
Vehicles and in-car equipment | Sale-Back Option Agreement [Member] | ||||
Property and Equipment, Net | ||||
Collateral to secure certain long-term borrowing arrangements | 252,985,226 | |||
DebtInstrumentCollateralAmount | 252,985,226 | |||
Other property and equipment | ||||
Property and Equipment, Net | ||||
Depreciation expenses | ¥ 12,806,130 | ¥ 13,363,708 | ¥ 17,242,676 |
SHORT-TERM DEBT (Details)
SHORT-TERM DEBT (Details) - CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 |
SHORT-TERM DEBT | ||
Short-term borrowings | ¥ 928,846,417 | ¥ 620,105,995 |
Long-term borrowings, current portion (Note 10) | 1,728,599,440 | 306,113,338 |
Total | ¥ 2,657,445,857 | ¥ 926,219,333 |
SHORT-TERM DEBT (Details 1)
SHORT-TERM DEBT (Details 1) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Nov. 30, 2017CNY (¥) | Jul. 31, 2017CNY (¥) | May 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Oct. 31, 2016CNY (¥) | Aug. 31, 2016CNY (¥) | Apr. 30, 2016CNY (¥) | Feb. 29, 2016CNY (¥) |
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | ¥ 928,846,417 | ¥ 620,105,995 | ||||||||
Restricted cash | ¥ 612,121,936 | $ 94,081,419 | ¥ 257,059,302 | |||||||
weighted average interest rate on short-term bank borrowings | 4.44% | 4.44% | 3.66% | |||||||
Amount Needs to Deposit in Designated Bank Account | ¥ 421,978,636 | $ 64,580,000 | ||||||||
Short term bank borrowing interest rate 4.1325 % | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Interest rate (as a percent) | 4.1325% | |||||||||
Notes payable | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | 253,259,200 | ¥ 363,983,800 | ||||||||
Short-term bank borrowings guaranteed by the Founder and his spouse | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | 0 | 75,000,000 | ||||||||
Short-term bank borrowings guaranteed by the Founder and his spouse | Short-term bank borrowings guaranteed by the Founder and his spouse, interest rate of 4.35% | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Loan facility maximum borrowing capacity | ¥ 50,000,000 | |||||||||
Short-term borrowings | ¥ 50,000,000 | |||||||||
Interest rate (as a percent) | 4.35% | |||||||||
Short-term bank borrowings guaranteed by the Founder and his spouse | Short Term Bank Borrowing Interest Rate 4.698% | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Loan facility maximum borrowing capacity | ¥ 25,000,000 | |||||||||
Short-term borrowings | ¥ 25,000,000 | |||||||||
Interest rate (as a percent) | 4.698% | 4.698% | ||||||||
Short-term bank borrowings | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Principal amount | ¥ 400,000,000 | |||||||||
Loan facility maximum borrowing capacity | ¥ 150,000,000 | ¥ 100,000,000 | ||||||||
Short-term borrowings | 675,587,217 | ¥ 181,122,195 | ||||||||
Interest rate (as a percent) | 4.35% | |||||||||
Short-term bank borrowings | Short term bank borrowing interest rate 4.35 % | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Principal amount | ¥ 50,000,000 | |||||||||
Short-term borrowings | 50,000,000 | |||||||||
Short-term bank borrowings | Short term bank borrowing interest rate 4.35 % One | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | ¥ 30,000,000 | ¥ 50,000,000 | ||||||||
Interest rate (as a percent) | 4.35% | 4.35% | ||||||||
Short-term bank borrowings | Short term bank borrowing interest rate 4.35 % Two | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | ¥ 50,000,000 | 10,000,000 | ||||||||
Interest rate (as a percent) | 4.35% | 4.35% | ||||||||
Short-term bank borrowings | Short term bank borrowing interest rate 4.35 % Three | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | 10,000,000 | |||||||||
Short-term bank borrowings | Short term bank borrowing interest rate 4.35 % Four | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | 30,000,000 | |||||||||
Short-term bank borrowings | Short term bank borrowing interest rate 4.1325 % | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Principal amount | ¥ 30,000,000 | |||||||||
Short-term borrowings | ¥ 30,000,000 | |||||||||
Interest rate (as a percent) | 4.1325% | 4.1325% | ||||||||
Short-term bank borrowings | Short Term Bank Borrowing Interest Rate 4.785% One | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | ¥ 20,000,000 | |||||||||
Interest rate (as a percent) | 4.785% | 4.785% | ||||||||
Short-term bank borrowings | Short Term Bank Borrowing Interest Rate 4.785% Two | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | ¥ 30,000,000 | |||||||||
Interest rate (as a percent) | 4.785% | 4.785% | ||||||||
Short-term bank borrowings | Short Term Bank Borrowing Interest Rate 4.785% Three | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | ¥ 20,000,000 | |||||||||
Interest rate (as a percent) | 4.785% | 4.785% | ||||||||
Short-term bank borrowings | Short Term Bank Borrowing Interest Rate 5.0025% | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Loan facility maximum borrowing capacity | ¥ 240,000,000 | |||||||||
Short-term borrowings | ¥ 45,728,059 | |||||||||
Interest rate (as a percent) | 5.0025% | |||||||||
Short-term bank borrowings | Short Term Bank Borrowing Interest Rate 4.1325% One | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | 200,000,000 | |||||||||
Short-term bank borrowings | Short Term Bank Borrowing Interest Rate 4.1325% Two | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term borrowings | ¥ 200,000,000 | |||||||||
Notes payable guaranteed by deposit | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Restricted cash | ¥ 75,143,300 | $ 11,500,000 | 115,000,000 | |||||||
Third-party financing loan payable | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Principal amount | 50,000,000 | 30,000,000 | ||||||||
Short-term borrowings | ¥ 29,859,158 | ¥ 26,122,195 | ||||||||
Interest rate (as a percent) | 4.82% | 4.82% | ||||||||
Short Term Loan [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Loan facility maximum borrowing capacity | ¥ 25,000,000 | |||||||||
Short-term borrowings | ¥ 25,000,000 | |||||||||
Interest rate (as a percent) | 4.35% |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | Dec. 08, 2015CNY (¥) | Oct. 31, 2016CNY (¥) | Sep. 30, 2016USD ($) | Aug. 31, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 08, 2015USD ($) | Jul. 31, 2015CNY (¥) | Apr. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) |
LONG-TERM DEBT | |||||||||||||||
Undrawn loan facilities | ¥ 202,605,274 | ¥ 63,358,721 | |||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | 4,685,655,914 | 3,073,936,327 | |||||||||||||
Less: Current portion of long-term debt | (1,728,599,440) | (306,113,338) | |||||||||||||
Total long-term borrowings | 2,957,056,474 | 2,767,822,989 | |||||||||||||
Years Ended December 31, | |||||||||||||||
2,018 | 1,743,425,515 | ||||||||||||||
2,019 | 238,098,275 | ||||||||||||||
2,020 | 156,518,571 | ||||||||||||||
2,022 | 2,613,680,000 | ||||||||||||||
Total | 4,751,722,361 | 3,134,983,173 | |||||||||||||
Restricted Cash and Cash Equivalents, Current | 612,121,936 | 257,059,302 | $ 94,081,419 | ||||||||||||
Repayments of Related Party Debt | ¥ 200,000,000 | 200,000,000 | |||||||||||||
Long-term borrowings collateralized by vehicles | |||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 213,703,954 | 292,605,866 | |||||||||||||
Long-term borrowings collateralized by vehicles | China Development Bank [Member] | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 5.225% | 5.225% | |||||||||||||
Collateral to secure certain long-term borrowing arrangements | ¥ 136,290,802 | ||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 180,000,000 | ¥ 218,000,000 | |||||||||||||
Years Ended December 31, | |||||||||||||||
Long-term Line of Credit | $ 220,000,000 | ¥ 1,500,000,000 | |||||||||||||
Debt Instrument, Interest Rate, Initial Percentage | 5.225% | ||||||||||||||
Long-term borrowings collateralized by vehicles | Several third party financing companies borrowings 2014, 2015 and 2016 | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 9.12% | 5.20% | 9.12% | 5.20% | |||||||||||
Collateral to secure certain long-term borrowing arrangements | ¥ 402,951,830 | ¥ 402,951,830 | |||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | 33,703,954 | 74,605,866 | |||||||||||||
Years Ended December 31, | |||||||||||||||
Total | 744,203,883 | ||||||||||||||
Long-term bank borrowings with receivable pledged as collateral | |||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 40,995,042 | ¥ 189,427,307 | |||||||||||||
Long-term bank borrowings with receivable pledged as collateral | Bank brrowings september 2014 | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 4.75% | 5.225% | 4.75% | 5.225% | |||||||||||
Loan facility maximum borrowing capacity | ¥ 155,000,000 | ||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 10,167,665 | ¥ 121,330,685 | |||||||||||||
Long-term bank borrowings with receivable pledged as collateral | Bank loan facility September 2014 | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 4.9875% | 4.9875% | |||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 30,827,377 | ¥ 68,096,622 | |||||||||||||
Entrusted long-term borrowing from a related party | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 6.90% | 6.90% | |||||||||||||
Loan facility maximum borrowing capacity | ¥ 300,000,000 | ||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | 100,000,000 | ¥ 100,000,000 | |||||||||||||
Years Ended December 31, | |||||||||||||||
Total | ¥ 100,000,000 | 100,000,000 | |||||||||||||
Repayments of Related Party Debt | ¥ 200,000,000 | ||||||||||||||
Long-Term Borrowings fom Banks or Financing Companies | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 6.00% | 6.00% | |||||||||||||
Loan facility maximum borrowing capacity | $ | $ 123,918,976 | ||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 476,503,365 | 125,000,000 | $ 115,166,011 | ||||||||||||
Syndicated loan | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Principal amount | $ | $ 150,000,000 | ||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | 0 | 1,010,689,797 | |||||||||||||
Years Ended December 31, | |||||||||||||||
Restricted Cash and Cash Equivalents, Current | $ | $ 1,547,240 | ||||||||||||||
Syndicated loan | Initial Facility [Member] | |||||||||||||||
Years Ended December 31, | |||||||||||||||
Proceeds from Issuance of Long-term Debt | $ | $ 110,000,000 | ||||||||||||||
Syndicated loan | GreenShoe Facility [Member] | |||||||||||||||
Years Ended December 31, | |||||||||||||||
Proceeds from Issuance of Long-term Debt | $ | $ 150,000,000 | $ 40,000,000 | |||||||||||||
2018 Senior Notes | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Principal amount | ¥ 1,281,560,000 | $ 200,000,000 | |||||||||||||
Issued value of debt, as a percent to par value | 99.342% | ||||||||||||||
Interest rate (as a percent) | 7.50% | 7.50% | |||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 34,538,769 | ||||||||||||||
Debt discount | ¥ 8,432,665 | ||||||||||||||
Effect interest rate (as a percent) | 7.75% | 8.99% | 8.99% | 7.75% | |||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 1,292,029,030 | 1,356,213,357 | |||||||||||||
Years Ended December 31, | |||||||||||||||
Total | 1,306,840,000 | 1,387,400,000 | |||||||||||||
2018 Senior Notes | Change of control triggering event | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Redemption price as a percent to principal amount | 101.00% | ||||||||||||||
2018 Senior Notes | Redemption option at the Company's option | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Redemption price as a percent to principal amount | 100.00% | ||||||||||||||
Percentage of principal amount added to redemption price | 1.00% | 1.00% | |||||||||||||
2018 Senior Notes | Redemption from net proceeds of sales of common stock | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Redemption price as a percent to principal amount | 107.50% | ||||||||||||||
Maximum principal amount that may be redeemed (as a percent) | 35.00% | 35.00% | |||||||||||||
Minimum principal amount that should remain outstanding after redemption (as a percent) | 65.00% | 65.00% | |||||||||||||
Redemption period after sales of common stock | 60 days | ||||||||||||||
2022 Senior Notes | |||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 2,562,424,523 | 0 | |||||||||||||
Long-term bank borrowings | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 4.9875% | 4.9875% | |||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 134,670,687 | ¥ 125,000,000 | |||||||||||||
Long-Term Borrowings One from Banks or Financing Companies [Member] | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Loan facility maximum borrowing capacity | ¥ 300,000,000 | ||||||||||||||
Long-Term Borrowings Two from Banks or Financing Companies [Member] | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 4.9875% | 4.9875% | |||||||||||||
Loan facility maximum borrowing capacity | ¥ 100,000,000 | ||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 95,000,000 | ||||||||||||||
Long-Term Borrowings Three from Banks or Financing Companies [Member] | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 4.9875% | 4.9875% | |||||||||||||
Loan facility maximum borrowing capacity | ¥ 50,000,000 | ||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 41,666,667 | ||||||||||||||
Long-Term Borrowings Four from Banks or Financing Companies [Member] | |||||||||||||||
LONG-TERM DEBT | |||||||||||||||
Interest rate (as a percent) | 0.00% | 0.00% | |||||||||||||
Loan facility maximum borrowing capacity | ¥ 100,000,000 | ||||||||||||||
Outstanding principal amount | |||||||||||||||
Subtotal | ¥ 90,000,000 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Accounts payable | |||
Payables for purchase of property and equipment | ¥ 576,569,163 | ¥ 163,190,564 | |
Others | 41,300,848 | 16,687,283 | |
Total | ¥ 617,870,011 | $ 94,964,882 | ¥ 179,877,847 |
ACCRUED EXPENSES AND OTHER CU65
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) |
Advance from customers | ¥ 105,716,286 | ¥ 68,397,492 | |
Customer deposits | 78,975,251 | 55,991,264 | |
Accrued employee payroll and welfare | 72,103,194 | 57,367,892 | |
Interest accrued | 63,982,199 | 8,530,203 | |
Other tax payable | 25,092,518 | 15,471,552 | |
Provision for customer loyalty program | 9,048,815 | 7,185,774 | |
Accrued professional service fees | 7,761,195 | 4,316,185 | |
Accrued advertising and promotion expense | 5,785,785 | 17,306,922 | |
Payable for property related purchase | 0 | 11,354,874 | |
Others | 65,421,499 | 22,569,229 | |
Total | ¥ 433,886,742 | $ 66,687,172 | ¥ 268,491,387 |
TAXATION (Details)
TAXATION (Details) | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | ||
Tax Rate Disclosure [Line Items] | ||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Income tax provision for the sales of cost method investment gain recognized according to Circular 7 | ¥ 1,881,456 | $ 270,986 | ¥ 83,103,026 | $ 13,587,500 | ||
Increase in Effective Income Tax Rate | 76.30% | 116.80% | 116.80% | |||
Deferred Tax Assets, Valuation Allowance, Noncurrent | ¥ 3,143,454 | [1] | ¥ 35,963,269 | |||
Maximum | ||||||
Tax Rate Disclosure [Line Items] | ||||||
EIT withholding tax rate | 10.00% | |||||
PRC | ||||||
Tax Rate Disclosure [Line Items] | ||||||
Statutory income tax rate (as a percent) | 25.00% | |||||
EIT withholding tax rate | 10.00% | |||||
Maximum EIT withholding tax rate if the foreign investor owns directly at least 25% of the shares of the FIE | 5.00% | |||||
Minimum percentage the foreign investor owns directly of the shares of the FIE will subject to no more than 5% EIT withholding tax. | 25.00% | |||||
PRC | Car rental service | ||||||
Tax Rate Disclosure [Line Items] | ||||||
VAT rate (as a percent) | 17.00% | |||||
PRC | Designated Driving Service | ||||||
Tax Rate Disclosure [Line Items] | ||||||
VAT rate (as a percent) | 11.00% | |||||
PRC | Qualified Management Services | ||||||
Tax Rate Disclosure [Line Items] | ||||||
VAT rate (as a percent) | 6.00% | |||||
Hong Kong | ||||||
Tax Rate Disclosure [Line Items] | ||||||
Statutory income tax rate (as a percent) | 16.50% | |||||
Shanghai | Car rental service | ||||||
Tax Rate Disclosure [Line Items] | ||||||
VAT rate (as a percent) | 3.00% | |||||
[1] | The Company has adopted ASU 2015-17 prospectively since January 1, 2017. |
TAXATION (Details 1)
TAXATION (Details 1) | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||
Pre-tax income from domestic (PRC) entities | ¥ 261,743,051 | ¥ 248,923,620 | ¥ 5,669,944 | |
Pre-tax income (loss) from foreign (non-PRC) entities | (92,151,762) | (209,177,533) | 778,156,851 | |
Income before income taxes | 169,591,289 | $ 26,065,704 | 39,746,087 | 783,826,795 |
Current income tax expense | ||||
Domestic (PRC) entities | 1,152,383 | 3,049,504 | 1,408,703 | |
Foreign (non-PRC) entities | 0 | 0 | 0 | |
Total | 1,152,383 | 3,049,504 | 1,408,703 | |
Deferred income tax expense | ||||
Domestic (PRC) entities | 29,066,413 | (2,489,648) | 0 | |
Foreign (non-PRC) entities | 0 | 0 | 0 | |
Total | 29,066,413 | 4,467,426 | (2,489,648) | |
Income tax expense (excluding withholding tax) | ||||
Domestic (PRC) entities | 30,218,796 | 559,855 | 1,408,703 | |
Withholding tax | ||||
Foreign (non-PRC) entities | 17,156,250 | 6,051,116 | 86,079,287 | |
Total income tax expense | ¥ 47,375,046 | $ 7,281,411 | ¥ 6,610,971 | ¥ 87,487,990 |
TAXATION (Details 2)
TAXATION (Details 2) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% |
Different tax rates in other jurisdictions (as a percent) | 13.30% | 90.80% | (26.00%) |
Withholding tax | 10.10% | 15.20% | 10.60% |
Permanent differences (as a percent) | 0.90% | (17.10%) | 0.10% |
Change in valuation allowance (as a percent) | (21.20%) | (97.50%) | 1.10% |
Tax holiday (as a percent) | (0.20%) | 0.20% | 0.00% |
Other (as a percent) | 0.00% | 0.00% | 0.40% |
Effective tax rate (as a percent) | 27.90% | 16.60% | 11.20% |
TAXATION (Details 3)
TAXATION (Details 3) - CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 | ||
Deferred tax assets, current: | ||||
Accrued payroll and other expenses | [1] | ¥ 0 | ¥ 598,246 | |
Allowance for doubtful accounts | [1] | 0 | 2,289,830 | |
Deferred government grant income | [1] | 0 | 2,151,411 | |
Others | [1] | 0 | 11,950 | |
Less: valuation allowance | [1] | 0 | (3,211,464) | |
Total current deferred tax assets, net | [1] | 0 | 1,839,973 | |
Deferred tax assets, non-current: | ||||
Accrued payroll and other expenses | 38,886,321 | [1] | 0 | |
Allowance for doubtful accounts | 3,611,931 | [1] | 0 | |
Net operating loss carry forwards | 40,279,987 | [1] | 55,724,899 | |
Less: valuation allowance | (3,143,454) | [1] | (35,963,269) | |
Total non-current deferred tax assets, net | 79,634,785 | [1] | 19,761,630 | |
Deferred tax liabilities, | ||||
Temporary difference on property and equipment | 90,793,841 | [1] | 19,111,955 | |
Deferred revenue | 15,417,709 | [1] | 0 | |
Recognition of intangible assets arisen from business combination | 1,061,542 | [1] | 1,061,542 | |
Total deferred tax liabilities | ¥ 107,273,092 | [1] | ¥ 20,173,497 | |
[1] | The Company has adopted ASU 2015-17 prospectively since January 1, 2017. |
TAXATION (Details 4)
TAXATION (Details 4) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | ||
Current deferred tax assets, net | [1] | ¥ 0 | ¥ 1,839,973 | ||
Non-current deferred tax assets, net | 0 | [1] | $ 0 | 649,675 | |
Deferred tax liabilities, non-current | ¥ 27,638,307 | [1] | $ 4,247,930 | ¥ 1,061,542 | |
[1] | The Company has adopted ASU 2015-17 prospectively since January 1, 2017. |
TAXATION (Details 5)
TAXATION (Details 5) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement of valuation allowance, current | |||
Balance at beginning of the year | ¥ 39,174,733 | ¥ 89,738,490 | ¥ 89,697,127 |
Additions in current year | 456,508 | 3,128,771 | 25,374,784 |
Reversals in current year | (36,482,572) | (53,692,038) | (25,210,766) |
Expirations in current year | (5,215) | (490) | (122,655) |
Balance at the end of the year | ¥ 3,143,454 | ¥ 39,174,733 | ¥ 89,738,490 |
TAXATION (Details 6)
TAXATION (Details 6) - CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry forwards | ¥ 167,597,369 | ¥ 341,922,125 | ¥ 300,376,325 |
COMMON SHARES (Details)
COMMON SHARES (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Common shares, shares outstanding | 138,890,287 | 138,860,287 |
Class A Common Shares | ||
Class of Stock [Line Items] | ||
Common shares, shares outstanding | 73,251,730 | 67,547,921 |
Class B Common Shares | ||
Class of Stock [Line Items] | ||
Common shares, shares outstanding | 65,638,557 | 71,312,366 |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
American Depositary Receipt reimbursement | ¥ 0 | ¥ 0 | ¥ 9,917,716 | |
Tax refund | 518,171 | 979,794 | 0 | |
Others | 1,438,848 | 464,335 | 287,559 | |
Total | ¥ 1,957,019 | $ 300,788 | ¥ 1,444,129 | ¥ 10,205,275 |
EARLY EXTINGUISHMENT OF DEBT 75
EARLY EXTINGUISHMENT OF DEBT COSTS (Details) | Aug. 15, 2017CNY (¥) | Aug. 15, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Repayments of Lines of Credit | $ 150,000,000 | |||||
Gain (Loss) on Extinguishment of Debt | ¥ 19,976,776 | $ 3,100,000 | ¥ (19,976,776) | $ (3,070,374) | ¥ 0 | ¥ 0 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | Dec. 26, 2015shares | Aug. 28, 2015shares | May 15, 2015$ / sharesshares | Aug. 26, 2014$ / sharesshares | Apr. 01, 2013$ / sharesshares | Mar. 23, 2017shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Aug. 25, 2014shares | Dec. 21, 2010shares | Apr. 01, 2010shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 525,000 | |||||||||||
Option exercised price, granted (in dollars per share) | $ / shares | $ 5.35 | |||||||||||
2010 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based payment award, maximum number of incentive award available (in shares) | 6,698,470 | 4,300,730 | 4,300,730 | 2,627,730 | ||||||||
Share Option | August 31, 2010 awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 300,000 | |||||||||||
Number of awards modified | 1,588,648 | |||||||||||
Modification incremental cost | ¥ | ¥ 76,552 | |||||||||||
Share Option | December 31, 2010 awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of awards modified | 1,673,000 | |||||||||||
Modification incremental cost | ¥ | ¥ 661,926 | ¥ 1,502,987 | ¥ 1,300,000 | |||||||||
Share Option | August 26, 2014 awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 1,300,000 | |||||||||||
Option exercised price, granted (in dollars per share) | $ / shares | $ 7 | $ 3.11 | ||||||||||
Restricted shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares granted to employees | 450,000 | 6,000 |
SHARE-BASED COMPENSATION (Det77
SHARE-BASED COMPENSATION (Details 1) | 12 Months Ended | ||||||
Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Number of Options | |||||||
Exercised (in shares) | shares | 0 | 0 | |||||
Weighted Average Exercise Price (US$) | |||||||
Options outstanding (in dollars per share) | $ / shares | $ 0 | ||||||
Aggregate Intrinsic Value (US$) | |||||||
Intrinsic value of options exercised | ¥ | ¥ 52,162 | ||||||
2010 Plan | |||||||
Number of Options | |||||||
Options outstanding (in shares) | shares | 3,155,500 | 3,155,500 | 4,900,000 | 4,900,000 | 5,136,900 | 5,136,900 | |
Exercised (in shares) | shares | (1,726,874) | (1,726,874) | (138,700) | (138,700) | |||
Cancelled and forfeited (in shares) | shares | (51,500) | (51,500) | (17,626) | (17,626) | (98,200) | (98,200) | |
Options outstanding (in shares) | shares | 3,104,000 | 3,104,000 | 3,155,500 | 3,155,500 | 4,900,000 | 4,900,000 | 5,136,900 |
Vested and expected to vest (in shares) | shares | 3,103,965 | ||||||
Exercisable (in shares) | shares | 2,775,000 | ||||||
Weighted Average Exercise Price (US$) | |||||||
Options outstanding (in dollars per share) | $ / shares | $ 4.57 | $ 3.74 | $ 3.76 | ||||
Exercised (in dollars per share) | $ / shares | 2.2 | 2.2 | |||||
Cancelled and forfeited (in dollars per share) | $ / shares | 7 | 6.97 | 6.86 | ||||
Options outstanding (in dollars per share) | $ / shares | 4.53 | $ 4.57 | $ 3.74 | $ 3.76 | |||
Vested and expected to vest | $ / shares | 4.53 | ||||||
Exercisable (in dollars per share) | $ / shares | $ 4.30 | ||||||
Weighted Average Contractual Term | |||||||
Options outstanding (Year) | 1 year 1 month 28 days | 1 year 1 month 28 days | 1 year 7 months 20 days | 1 year 7 months 20 days | 1 year 7 months 2 days | 1 year 7 months 2 days | 1 year 11 months 12 days |
Vested and expected to vest | 1 year 1 month 28 days | 1 year 1 month 28 days | |||||
Exercisable, contractual term | 1 year 1 month 13 days | 1 year 1 month 13 days | |||||
Aggregate Intrinsic Value (US$) | |||||||
Options outstanding, intrinsic value | $ | $ 2,801,660 | $ 13,356,070 | $ 5,425,522 | ||||
Options outstanding, intrinsic value | $ | 5,277,775 | $ 2,801,660 | $ 13,356,070 | $ 5,425,522 | |||
Vested and expected to vest | $ | 5,277,775 | ||||||
Exercisable, intrinsic value | $ | $ 5,144,025 | ||||||
Intrinsic value of options exercised | ¥ | ¥ 38,265,778 | ¥ 2,577,855 |
SHARE-BASED COMPENSATION (Det78
SHARE-BASED COMPENSATION (Details 2) | Aug. 26, 2014shares | Mar. 23, 2017shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2017$ / shares |
Weighted Average Grant-date Fair Value (US$) | |||||||||
Recognized share-based compensation expense | ¥ | ¥ 13,588,843 | ¥ 16,040,947 | ¥ 13,983,246 | ||||||
Share Option | |||||||||
Weighted Average Grant-date Fair Value (US$) | |||||||||
Unrecognized compensation expense | ¥ | 4,039,457 | ||||||||
Restricted shares | |||||||||
Number of Restricted Share Units | |||||||||
Granted | 450,000 | 6,000 | |||||||
Weighted Average Grant-date Fair Value (US$) | |||||||||
Restricted shares vested at vesting date | $ | $ 507,938 | $ 590,625 | $ 537,750 | ||||||
Recognized share-based compensation expense | ¥ | 3,504,963 | 5,222,062 | 4,894,683 | ||||||
2010 Plan | Share Option | |||||||||
Weighted Average Grant-date Fair Value (US$) | |||||||||
Recognized share-based compensation expense | ¥ | ¥ 7,638,082 | ¥ 8,489,631 | ¥ 7,666,182 | ||||||
2010 Plan | Restricted shares | |||||||||
Number of Restricted Share Units | |||||||||
Unvested at beginning of year | 112,500 | 112,500 | 225,000 | 225,000 | 337,500 | 337,500 | |||
Vested | (112,500) | (112,500) | (112,500) | (112,500) | (112,500) | (112,500) | |||
Unvested at end of year | 0 | 0 | 112,500 | 112,500 | 225,000 | 225,000 | |||
Expected to vest at end of year | 112,500 | ||||||||
Weighted Average Grant-date Fair Value (US$) | |||||||||
Unvested at beginning of year (in dollars per share) | $ / shares | $ 6.99 | $ 6.99 | |||||||
Vested (in dollars per share) | $ / shares | 6.99 | 6.99 | 6.99 | ||||||
Unvested at end of year (in dollars per share) | $ / shares | $ 0 | 6.99 | $ 6.99 | ||||||
Expected to vest at end of year (in dollars per share) | $ / shares | $ 6.99 | ||||||||
2014 Plan | |||||||||
Weighted Average Grant-date Fair Value (US$) | |||||||||
Recognized share-based compensation expense | ¥ | ¥ 2,304,913 | ¥ 2,329,254 | ¥ 1,422,381 | ||||||
2014 Plan | Restricted shares | |||||||||
Number of Restricted Share Units | |||||||||
Unvested at beginning of year | 0 | 0 | |||||||
Granted | 6,000 | 6,000 | |||||||
Vested | (3,000) | (3,000) | |||||||
Unvested at end of year | 3,000 | 3,000 | 0 | 0 | |||||
Expected to vest at end of year | 2,502 | ||||||||
Weighted Average Grant-date Fair Value (US$) | |||||||||
Unvested at beginning of year (in dollars per share) | $ / shares | $ 0 | ||||||||
Granted (in dollars per share) | $ / shares | 5.11 | ||||||||
Vested (in dollars per share) | $ / shares | 5.11 | ||||||||
Unvested at end of year (in dollars per share) | $ / shares | $ 5.11 | $ 0 | |||||||
Expected to vest at end of year (in dollars per share) | $ / shares | $ 5.11 | ||||||||
Restricted shares vested at vesting date | $ | $ 15,240 | ||||||||
Recognized share-based compensation expense | ¥ | ¥ 140,885 |
SHARE-BASED COMPENSATION (Det79
SHARE-BASED COMPENSATION (Details 3) - $ / shares | May 15, 2015 | Aug. 26, 2014 | Mar. 23, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | Oct. 31, 2014 |
Share-based compensation | ||||||
Granted (in shares) | 525,000 | |||||
Option exercised price, granted (in dollars per share) | $ 5.35 | |||||
Contractual term | 10 years | |||||
First anniversary | ||||||
Share-based compensation | ||||||
Vesting period | 25 years | |||||
2014 Plan | ||||||
Share-based compensation | ||||||
Share-based payment award, maximum number of incentive award available (in shares) | 4,000,000 | |||||
Automatic increase of authorized ordinary shares (in percent) | 1.00% | |||||
Automatic increase of authorized ordinary shares (in shares) | 1,000,000 | |||||
Granted (in shares) | 525,000 | |||||
Option exercised price, granted (in dollars per share) | $ 5.35 | |||||
Restricted Stock [Member] | ||||||
Share-based compensation | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 450,000 | 6,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 50% of which vested immediately, with the remaining 50% vested over the next two years (25% vest on each of the first and second anniversaries of the grant date). | |||||
Restricted Stock [Member] | 2014 Plan | ||||||
Share-based compensation | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 6,000 |
SHARE-BASED COMPENSATION (Det80
SHARE-BASED COMPENSATION (Details 4) - USD ($) | May 15, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Number of Options | |||||
Granted (in shares) | 525,000 | ||||
Exercised (in shares) | 0 | ||||
Weighted Average Exercise Price (US$) | |||||
Granted (in dollars per share) | $ 5.35 | ||||
Options outstanding (in dollars per share) | $ 0 | ||||
2014 Plan | |||||
Number of Options | |||||
Options outstanding (in shares) | 501,000 | 509,000 | |||
Granted (in shares) | 525,000 | ||||
Exercised (in shares) | (27,000) | ||||
Cancelled and forfeited (in shares) | (71,000) | (8,000) | (16,000) | ||
Options outstanding (in shares) | 403,000 | 501,000 | 509,000 | ||
Vested and expected to vest (in shares) | 396,226 | ||||
Exercisable (in shares) | 201,500 | ||||
Weighted Average Exercise Price (US$) | |||||
Options outstanding (in dollars per share) | $ 5.35 | $ 5.35 | |||
Granted (in dollars per share) | 5.35 | ||||
Exercised (in dollars per share) | 5.35 | ||||
Cancelled and forfeited (in dollars per share) | 5.35 | 5.35 | 5.35 | ||
Options outstanding (in dollars per share) | 5.35 | $ 5.35 | $ 5.35 | ||
Vested and expected to vest | 5.35 | ||||
Exercisable (in dollars per share) | $ 5.35 | ||||
Weighted Average Contractual Term | |||||
Options outstanding, contractual term | 7 years 4 months 17 days | 8 years 4 months 17 days | 9 years 4 months 17 days | ||
Vested and expected to vest | 7 years 4 months 17 days | ||||
Exercisable, contractual term | 7 years 4 months 17 days | ||||
Aggregate Intrinsic Value (US$) | |||||
Options outstanding, intrinsic value | $ 175,305 | $ 481,005 | $ 0 | ||
Vested and expected to vest | 172,358 | ||||
Exercisable, intrinsic value | $ 87,653 | ||||
Weighted Average Grant-date Fair Value (US$) | |||||
Granted, fair value (in dollars per share) | $ 2.86 |
SHARE-BASED COMPENSATION (Det81
SHARE-BASED COMPENSATION (Details 5) | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | |
Share-based compensation | ||||||
Recognized share-based compensation expense | ¥ 13,588,843 | ¥ 16,040,947 | ¥ 13,983,246 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 52,162 | |||||
Restricted Stock [Member] | ||||||
Share-based compensation | ||||||
Recognized share-based compensation expense | ¥ 3,504,963 | 5,222,062 | ¥ 4,894,683 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 507,938 | $ 590,625 | $ 537,750 | |||
2014 Plan | ||||||
Share-based compensation | ||||||
Risk-free interest rate (as a percent) | 2.14% | 2.14% | ||||
Option term | 10 years | 10 years | ||||
Volatility (as a percent) | 55.00% | 55.00% | ||||
Dividend yield | 0.00% | 0.00% | ||||
Expected weighted-average recognized period | 1 year 4 months 13 days | 1 year 4 months 13 days | ||||
Expected forfeiture rate (post-vesting) of executive level | 0.00% | 0.00% | ||||
Expected forfeiture rate (post-vesting) of non-executive level | 10.00% | 10.00% | ||||
Recognized share-based compensation expense | ¥ 2,304,913 | ¥ 2,329,254 | ¥ 1,422,381 | |||
Total unrecognized compensation expense | 2,333,324 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ¥ 2,333,324 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 7 years 4 months 17 days | 7 years 4 months 17 days | ||||
2014 Plan | Restricted Stock [Member] | ||||||
Share-based compensation | ||||||
Recognized share-based compensation expense | ¥ 140,885 | |||||
Total unrecognized compensation expense | 49,307 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 15,240 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ¥ 49,307 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 2 months 23 days | 1 year 2 months 23 days |
INCOME PER SHARE (Details)
INCOME PER SHARE (Details) | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares | Dec. 31, 2015CNY (¥)¥ / sharesshares | ||
Numerator: | |||||
Net income : | ¥ 122,216,243 | $ 18,784,293 | ¥ 33,135,116 | ¥ 696,338,805 | |
Numerator for basic and diluted net income per share | ¥ | ¥ 122,216,243 | ¥ 33,135,116 | ¥ 696,338,805 | ||
Denominator: | |||||
Denominator for basic calculation-weighted average number of common shares outstanding | 138,794,624 | 138,794,624 | 137,621,702 | 126,758,363 | |
Dilutive effect of share options | 758,702 | 758,702 | 897,122 | 1,593,216 | |
Dilutive effect of restricted shares and restricted share units | 40,591 | 40,591 | 33,207 | 52,298 | |
Denominator for diluted income per share calculation | 139,593,917 | 139,593,917 | 138,552,031 | 128,403,877 | |
Basic net income per share attributable to the Company’s common shareholders | (per share) | ¥ 0.88 | $ 0.14 | ¥ 0.24 | ¥ 5.49 | |
Diluted net income per share attributable to the Company’s common shareholders | (per share) | 0.88 | 0.13 | 0.24 | 5.42 | |
Basic net income per ADS | (per share) | [1] | 1.76 | 0.27 | 0.48 | 10.99 |
Diluted net income per ADS | (per share) | [1] | ¥ 1.75 | $ 0.27 | ¥ 0.48 | ¥ 10.85 |
Share Options and Restricted Shares | |||||
Denominator: | |||||
Weighted average basis were anti-dilutive and excluded from the calculation of diluted net income loss per share | 1,584,581 | 1,584,581 | 2,753,664 | 2,828,588 | |
[1] | Each ADS represents two Class A common shares |
COMMITMENTS AND CONTINGENCIES83
COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
2,018 | ¥ 51,630,688 | ||
2,019 | 27,830,356 | ||
2,020 | 9,609,139 | ||
2,021 | 6,110,999 | ||
2,022 | 3,012,326 | ||
Thereafter | 852,333 | ||
Total | 99,045,841 | ||
Rental expense | 65,405,038 | ¥ 57,538,983 | ¥ 50,738,573 |
Purchase commitments to rental vehicles | 560,047,600 | ||
Purchase commitments to rental vehicles 2017 | 550,509,970 | ||
Purchase commitments to rental vehicles 2018 and 2019 | ¥ 9,537,630 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | May 22, 2015USD ($)$ / sharesshares | Oct. 31, 2014CNY (¥) | Oct. 31, 2014USD ($)$ / sharesshares | Apr. 16, 2014USD ($)shares | Oct. 31, 2016CNY (¥) | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($)shares | Jun. 30, 2015shares | Apr. 30, 2015CNY (¥) | Oct. 14, 2014$ / sharesshares |
RELATED PARTIES TRANSACTIONS | |||||||||||||
Interest incurred | ¥ 6,995,833 | $ 1,075,240 | ¥ 18,534,167 | ¥ 14,202,500 | |||||||||
Significant balances with related parties | |||||||||||||
Due from a related party, current - Receivables due from Ctrip | 83,323,718 | 1,755,889 | $ 12,806,621 | ||||||||||
Due to a related party, current - Payables due to Ctrip | 210,833 | 16,083,610 | 32,404 | ||||||||||
Due to a related party, current - Borrowing due to Ctrip | 0 | 100,000,000 | $ 0 | ||||||||||
Repayments of Related Party Debt | ¥ 200,000,000 | 200,000,000 | |||||||||||
Entrusted Bank Loan | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Interest rate (as a percent) | 6.90% | ||||||||||||
Interest incurred | ¥ | 6,995,833 | 18,534,167 | 14,202,500 | ||||||||||
Series E Preferred Stock | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Number of shares sold | 1,764,055 | ||||||||||||
Proceeds from issuance of shares | $ | $ 9,702,299 | ||||||||||||
Class A Common Shares | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Number of shares sold | 1,666,666 | ||||||||||||
Sale of common shares to related party (dollar per common share) | $ / shares | $ 6 | ||||||||||||
Ctrip | Entrusted Bank Loan | |||||||||||||
Significant balances with related parties | |||||||||||||
Due to a related party, current - Borrowing due to Ctrip | ¥ | ¥ 300,000,000 | ||||||||||||
Ctrip | Car rental and car services referrals | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Transaction incurred | ¥ | ¥ 16,263,674 | ¥ 29,399,234 | ¥ 16,190,063 | ||||||||||
Ctrip | Series E Preferred Stock | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Number of shares sold | 2,368,193 | ||||||||||||
Proceeds from issuance of shares | $ | $ 13,025,062 | ||||||||||||
Crawford | Class B Common Shares | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Number of shares sold | 18,694,003 | 18,694,003 | |||||||||||
Number of warrants exercised by related party | 1,500,000 | ||||||||||||
Number of common shares sold under warrant | 1,500,000 | ||||||||||||
Purchase price (dollar per common share) | $ / shares | $ 5.50 | ||||||||||||
Proceeds from exercise of warrants | ¥ 50,705,282 | $ 8,249,993 | |||||||||||
Tiger Fund and SRS Fund | Class A Common Shares | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Number of shares sold in first tranche | 11,437,924 | ||||||||||||
Number of shares sold in second tranche | 10,900,000 | ||||||||||||
Tiger Fund and SRS Fund | Class A Common Shares | Ctrip and Crawford | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Number of shares sold | 2,666,666 | ||||||||||||
Sale of common shares to related party (dollar per common share) | $ / shares | $ 6 | ||||||||||||
Tiger Fund and SRS Fund | Class A Common Shares | Private placements | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Number of shares sold | 22,337,924 | ||||||||||||
Sale of common shares to related party (dollar per common share) | $ / shares | $ 6 | ||||||||||||
Proceeds from issuance of shares | $ | $ 134,000,000 | ||||||||||||
Tiger Fund and SRS Fund | ADS | Ctrip and Crawford | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Sale of common shares to related party (dollar per common share) | $ / shares | $ 12 | ||||||||||||
Tiger Fund and SRS Fund | ADS | Private placements | |||||||||||||
RELATED PARTIES TRANSACTIONS | |||||||||||||
Sale of common shares to related party (dollar per common share) | $ / shares | $ 12 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Scenario, Forecast [Member] - $ / shares | Apr. 13, 2018 | Apr. 06, 2018 |
SUBSEQUENT EVENTS | ||
Business Acquisition, Share Price | $ 7.25 | |
American Depositary Shares [Member] | ||
SUBSEQUENT EVENTS | ||
Business Acquisition, Share Price | $ 14.50 | $ 13.50 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Required percentage of annual appropriations | 10.00% |
Limit of statutory reserve fund as a percentage of registered capital, after which allocations to statutory reserve fund are no longer required | 50.00% |
Total restricted net assets | ¥ 3,482,551,773 |
Percentage of restricted net assets to consolidated net assets | 82.80% |
CONDENSED FINANCIAL INFORMATI87
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details) | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) |
Current assets: | ||||||
Cash and cash equivalents | ¥ 671,350,459 | $ 103,184,676 | ¥ 529,518,517 | $ 81,385,506 | ¥ 2,610,088,382 | ¥ 926,207,744 |
Restricted cash | 612,121,936 | 94,081,419 | 257,059,302 | |||
Prepaid expenses and other current assets | 1,505,857,012 | 231,445,985 | 727,787,345 | |||
Total current assets | 3,364,457,249 | 517,107,611 | 1,941,705,244 | |||
Investments in subsidiaries and VIEs | 10,800,000 | 1,659,930 | 0 | |||
Total assets | 10,928,462,018 | 1,679,673,857 | 8,160,959,100 | |||
Current liabilities: | ||||||
Short-term debt due to third parties | 2,557,445,857 | 393,072,231 | 926,219,333 | |||
Accrued expenses and other current liabilities | 433,886,742 | 66,687,172 | 268,491,387 | |||
Income tax payable | 18,180,848 | 2,794,345 | 5,436,989 | |||
Total current liabilities | 3,727,594,291 | 572,920,753 | 1,396,109,166 | |||
Long-term debt | 2,957,056,474 | 454,491,258 | 2,667,822,989 | |||
Total liabilities | 6,721,915,249 | 1,033,139,457 | 4,169,829,559 | |||
Shareholders' equity: | ||||||
Common shares, US$0.001 par value, 500,000,000 and 500,000,000 (including 407,328,619 Class A and 92,671,381 Class B) shares authorized, 138,860,287 (including 67,547,921 Class A and 71,312,366 Class B) and 138,890,287 (including 73,251,730 Class A and 65,638,557 Class B) shares issued and outstanding as of December 31, 2016 and December 31, 2017, respectively | 878,663 | 135,048 | 878,463 | |||
Additional paid-in capital | 4,489,246,326 | 689,984,527 | 4,474,702,198 | |||
Accumulated other comprehensive income | 121,858,122 | 18,729,250 | 43,201,465 | |||
Accumulated deficit | (405,436,342) | (62,314,425) | (527,652,585) | |||
Total shareholders' equity | 4,206,546,769 | 646,534,400 | 3,991,129,541 | 3,948,073,278 | 2,366,391,673 | |
Total liabilities and shareholders' equity | ¥ 10,928,462,018 | $ 1,679,673,857 | ¥ 8,160,959,100 | |||
Common shares, par value | $ / shares | $ 0.001 | $ 0.001 | ||||
Common shares, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||
Common shares, shares issued | 138,890,287 | 138,890,287 | 138,860,287 | 138,860,287 | ||
Common shares, shares outstanding | 138,890,287 | 138,890,287 | 138,860,287 | 138,860,287 | ||
Class A Common Shares | ||||||
Shareholders' equity: | ||||||
Common shares, shares authorized | 407,328,619 | 407,328,619 | 407,328,619 | 407,328,619 | ||
Common shares, shares issued | 73,251,730 | 73,251,730 | 67,547,921 | 67,547,921 | ||
Common shares, shares outstanding | 73,251,730 | 73,251,730 | 67,547,921 | 67,547,921 | ||
Class B Common Shares | ||||||
Shareholders' equity: | ||||||
Common shares, shares authorized | 92,671,381 | 92,671,381 | 92,671,381 | 92,671,381 | ||
Common shares, shares issued | 65,638,557 | 65,638,557 | 71,312,366 | 71,312,366 | ||
Common shares, shares outstanding | 65,638,557 | 65,638,557 | 71,312,366 | 71,312,366 | ||
Parent company | ||||||
Current assets: | ||||||
Cash and cash equivalents | ¥ 4,023 | $ 618 | ¥ 4,271 | $ 656 | ¥ 3,998,000 | ¥ 3,768,000 |
Restricted cash | 0 | 0 | 10,733,202 | |||
Amounts due from subsidiaries | 7,959,314,970 | 1,223,324,312 | 6,717,714,285 | |||
Prepaid expenses and other current assets | 3,609,637 | 554,791 | 4,208,266 | |||
Total current assets | 7,962,928,630 | 1,223,879,721 | 6,732,660,024 | |||
Investments in subsidiaries and VIEs | 192,995,609 | 29,662,882 | 0 | |||
Total assets | 8,155,924,239 | 1,253,542,603 | 6,732,660,024 | |||
Current liabilities: | ||||||
Short-term debt due to third parties | 1,292,029,030 | 198,581,226 | 0 | |||
Accrued expenses and other current liabilities | 78,150,364 | 12,011,491 | 8,678,123 | |||
Income tax payable | 16,773,553 | 2,578,048 | 4,169,661 | |||
Total current liabilities | 1,386,952,947 | 213,170,765 | 12,847,784 | |||
Long-term debt | 2,562,424,523 | 393,837,438 | 2,366,903,154 | |||
Deficits in subsidiaries and VIEs | 0 | 0 | 361,779,545 | |||
Total liabilities | 3,949,377,470 | 607,008,203 | 2,741,530,483 | |||
Shareholders' equity: | ||||||
Common shares, US$0.001 par value, 500,000,000 and 500,000,000 (including 407,328,619 Class A and 92,671,381 Class B) shares authorized, 138,860,287 (including 67,547,921 Class A and 71,312,366 Class B) and 138,890,287 (including 73,251,730 Class A and 65,638,557 Class B) shares issued and outstanding as of December 31, 2016 and December 31, 2017, respectively | 878,663 | 135,048 | 878,463 | |||
Additional paid-in capital | 4,489,246,326 | 689,984,527 | 4,474,702,198 | |||
Accumulated other comprehensive income | 121,858,122 | 18,729,250 | 43,201,465 | |||
Accumulated deficit | (405,436,342) | (62,314,425) | (527,652,585) | |||
Total shareholders' equity | 4,206,546,769 | 646,534,400 | 3,991,129,541 | |||
Total liabilities and shareholders' equity | ¥ 8,155,924,239 | $ 1,253,542,603 | ¥ 6,732,660,024 | |||
Common shares, par value | $ / shares | $ 0.001 | $ 0.001 | ||||
Common shares, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||
Common shares, shares issued | 138,890,287 | 138,890,287 | 138,860,287 | 138,860,287 | ||
Common shares, shares outstanding | 138,890,287 | 138,890,287 | 138,860,287 | 138,860,287 | ||
Parent company | Class A Common Shares | ||||||
Shareholders' equity: | ||||||
Common shares, shares authorized | 407,328,619 | 407,328,619 | 407,328,619 | 407,328,619 | ||
Common shares, shares issued | 73,251,730 | 73,251,730 | 67,547,921 | 67,547,921 | ||
Common shares, shares outstanding | 73,251,730 | 73,251,730 | 67,547,921 | 67,547,921 | ||
Parent company | Class B Common Shares | ||||||
Shareholders' equity: | ||||||
Common shares, shares authorized | 92,671,381 | 92,671,381 | 92,671,381 | 92,671,381 | ||
Common shares, shares issued | 65,638,557 | 65,638,557 | 71,312,366 | 71,312,366 | ||
Common shares, shares outstanding | 65,638,557 | 65,638,557 | 71,312,366 | 71,312,366 |
CONDENSED FINANCIAL INFORMATI88
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 1) | Aug. 15, 2017CNY (¥) | Aug. 15, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Operating expenses: | ||||||
General and administrative expenses | ¥ (270,670,181) | $ (41,601,245) | ¥ (251,938,077) | ¥ (183,548,522) | ||
Loss from operations | 453,233,746 | 69,660,751 | 254,847,402 | 74,807,785 | ||
Interest income: | ||||||
Interest expense | (280,584,832) | (43,125,099) | (224,959,389) | (123,768,564) | ||
Early extinguishment of debt costs | ¥ 19,976,776 | $ 3,100,000 | (19,976,776) | (3,070,374) | 0 | 0 |
Gain from sale of cost method investment | 0 | 0 | 0 | 803,059,728 | ||
Income before income taxes | 169,591,289 | 26,065,704 | 39,746,087 | 783,826,795 | ||
Provision for income taxes | (47,375,046) | (7,281,411) | (6,610,971) | (87,487,990) | ||
Net income | 122,216,243 | 18,784,293 | 33,135,116 | 696,338,805 | ||
Change in cumulative foreign currency translation adjustment, net of tax of nil | 78,656,657 | 12,089,307 | (31,353,357) | 73,410,193 | ||
Comprehensive income | 200,872,900 | 30,873,600 | 1,781,759 | 769,748,998 | ||
Parent company | ||||||
Operating expenses: | ||||||
General and administrative expenses | (31,013,301) | (4,766,657) | (25,424,596) | (21,426,624) | ||
Loss from operations | (31,013,301) | (4,766,657) | (25,424,596) | (21,426,624) | ||
Interest income: | ||||||
Third party | 760 | 117 | 3,537,155 | 0 | ||
Subsidiaries | 184,327,276 | 28,330,583 | 41,696,607 | 0 | ||
Total interest income | 184,328,036 | 28,330,700 | 45,233,762 | 0 | ||
Interest expense | (216,816,430) | (33,324,075) | (128,065,737) | (6,905,640) | ||
Early extinguishment of debt costs | (19,976,776) | (3,070,374) | 0 | 0 | ||
Gain from sale of cost method investment | 0 | 0 | 0 | 803,059,728 | ||
Share of gain of subsidiaries and VIEs | 222,850,964 | 34,251,566 | 147,442,803 | (2,227,088) | ||
Other income | 0 | 0 | 0 | 9,917,716 | ||
Income before income taxes | 139,372,493 | 21,421,160 | 39,186,232 | 782,418,092 | ||
Provision for income taxes | (17,156,250) | (2,636,867) | (6,051,116) | (86,079,287) | ||
Net income | 122,216,243 | 18,784,293 | 33,135,116 | 696,338,805 | ||
Net income | 122,216,243 | 18,784,293 | 33,135,116 | 696,338,805 | ||
Change in cumulative foreign currency translation adjustment, net of tax of nil | 78,656,657 | 12,089,307 | (31,353,357) | 73,410,193 | ||
Comprehensive income | ¥ 200,872,900 | $ 30,873,600 | ¥ 1,781,759 | ¥ 769,748,998 |
CONDENSED FINANCIAL INFORMATI89
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 2) | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Net cash used in financing activities: | ||||
Net increase (decrease) in cash and cash equivalents | ¥ 141,831,942 | $ 21,799,170 | ¥ (2,080,569,865) | ¥ 1,683,880,638 |
Cash and cash equivalents-beginning of year | 529,518,517 | 81,385,506 | 2,610,088,382 | 926,207,744 |
Cash and cash equivalents-end of year | 671,350,459 | 103,184,676 | 529,518,517 | 2,610,088,382 |
Supplemental disclosure for cash flow information: | ||||
Cash paid for income taxes | 5,564,773 | 855,290 | 93,382,333 | 5,491,235 |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Proceeds of issuance of the 2018 Senior Notes, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) | 1,241,289,905 | |||
Repayment of syndicated loan(cash paid by a subsidiary of the Company on behalf of the Company) | 1,000,335,000 | 153,748,674 | 0 | 0 |
Proceeds of issuance of the 2022 Senior Notes, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) | 2,611,624,352 | 401,399,313 | ||
Payment of professional fees for aborted offerings(cash paid by a subsidiary of the Company on behalf of the Company) | 1,748,969 | 268,812 | ||
Accrued professional fees for issuance of Senior Notes | 2,740,945 | |||
Accrued professional fees for aborted offering | 2,174,451 | 334,207 | ||
Subscription receivables related to share option exercise | 197,816 | |||
Parent company | ||||
STATEMENTS OF CASH FLOWS | ||||
Net cash provided by operating activities | 0 | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 | 0 |
Net cash used in financing activities: | ||||
Net cash used in financing activities: | 0 | 0 | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | (248,000) | (38) | 273,000 | 230,000 |
Net increase (decrease) in cash and cash equivalents | (248,000) | (38) | 273,000 | 230,000 |
Cash and cash equivalents-beginning of year | 4,271 | 656 | 3,998,000 | 3,768,000 |
Cash and cash equivalents-end of year | 4,023 | 618 | 4,271 | 3,998,000 |
Supplemental disclosure for cash flow information: | ||||
Cash paid for interest | 0 | 0 | 0 | 0 |
Cash paid for income taxes | 0 | 0 | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||||
Proceeds from exercise of share options (cash received by a subsidiary of the Company on behalf of the Company) | 955,485 | 146,855 | 25,431,373 | 4,891,204 |
Proceeds of issuance of the 2018 Senior Notes, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) | 0 | 0 | 0 | 1,241,289,905 |
Repayment of syndicated loan(cash paid by a subsidiary of the Company on behalf of the Company) | (1,000,335,000) | (153,748,674) | 0 | 0 |
Proceeds of issuance of the 2022 Senior Notes, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) | 2,611,624,352 | 401,399,313 | 0 | 0 |
Payment for Senior Notes issuance costs (cash paid by a subsidiary of the Company on behalf of the Company) | 0 | 0 | (2,740,945) | 0 |
Proceeds of US$150 million syndicated loan, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) | 0 | 0 | 957,158,701 | 0 |
Proceeds from sale of cost method investment, net of related transaction costs (cash received by a subsidiary of the Company on behalf of the Company) | 0 | 0 | 0 | 954,428,056 |
Payment of professional fees for aborted offerings(cash paid by a subsidiary of the Company on behalf of the Company) | (1,748,969) | (268,812) | 0 | 0 |
Accrued professional fees for issuance of Senior Notes | 0 | 0 | 0 | 2,740,945 |
Accrued professional fees for aborted offering | 2,174,451 | 334,207 | 0 | 0 |
Subscription receivables related to share option exercise | 0 | 0 | 0 | 197,816 |
IPO | Parent company | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||
Payment for IPO issuance costs (cash paid by a subsidiary of the Company on behalf of the Company) | 0 | 0 | 0 | (20,656,597) |
Private placements | Parent company | Class A Common Shares | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||
Proceeds from issuance of Class A common shares in private placement, net of issuance costs (cash received by a subsidiary of the Company on behalf of the Company) | ¥ 0 | $ 0 | ¥ 0 | ¥ 792,860,341 |
CONDENSED FINANCIAL INFORMATI90
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Parenthetical) (Details 2) - Syndicated Loan [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Debt Instrument, Face Amount | $ 150,000,000 | |
Parent Company [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Debt Instrument, Face Amount | $ 150,000,000 | $ 150,000,000 |
Proceeds from Issuance of Long-term Debt | $ 150,000,000 |