Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40004 |
Entity Registrant Name | Cloopen Group Holding Limited |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Country | CN |
Entity Address, Address Line One | 16/F, Tower A, Fairmont Tower |
Entity Address, Address Line Two | 33 Guangshun North Main Street |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100102 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Central Index Key | 0001804583 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | false |
American depositary shares | |
Title of 12(b) Security | American depositary shares, each representing two Class A ordinary shares, par value US$0.0001 per share |
Trading Symbol | RAAS |
Security Exchange Name | NYSE |
Class A ordinary shares | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share* |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 303,090,509 |
No Trading Symbol Flag | false |
Class B ordinary Shares | |
Entity Common Stock, Shares Outstanding | 25,649,839 |
Business Contact | |
Entity Address, Country | CN |
Entity Address, Address Line One | 16/F, Tower A, Fairmont Tower |
Entity Address, Address Line Two | 33 Guangshun North Main Street |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100102 |
City Area Code | 86 |
Local Phone Number | 10-6477-5672 |
Contact Personnel Name | Yipeng Li |
Contact Personnel Email Address | liyipeng@yuntongxun.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets | |||
Cash | ¥ 296,565,209 | $ 45,450,607 | ¥ 164,118,081 |
Restricted cash (including restricted cash of VIE that can only be used to settle the VIE's own obligation of RMB195,000 and RMB1,893,454 as of December 31, 2019 and 2020) | 1,893,454 | 290,185 | 195,000 |
Term deposits | 160,349,418 | 24,574,623 | 69,762,000 |
Short-term investments | 2,501,024 | ||
Accounts receivable - third parties, net (including accounts receivable of VIE that can only be used to settle the VIE's own obligations of RMB168,249,612 and nil as of December 31, 2019 and 2020) | 228,892,662 | 35,079,335 | 206,629,418 |
Accounts receivable - a related party, net | 9,447,148 | 1,447,839 | 12,501,982 |
Contract assets | 36,307,474 | 5,564,364 | 25,249,719 |
Amounts due from related parties | 6,275,229 | 961,721 | 6,445,606 |
Prepayments and other current assets (including other receivables of VIE that can only be used to settle the VIE's own obligations of RMB125,690,863 and nil as of December 31, 2019 and 2020) | 139,257,239 | 21,342,106 | 113,775,649 |
Total current assets | 878,987,833 | 134,710,780 | 601,178,479 |
Non-current assets | |||
Long-term investments | 66,162,184 | 10,139,798 | 40,077,207 |
Property and equipment, net | 16,416,156 | 2,515,886 | 17,904,068 |
Intangible assets, net | 2,022,583 | 309,974 | 3,443,178 |
Deferred income tax assets | 1,048,972 | 160,762 | 180,222 |
Other non-current assets | 3,824,513 | 586,132 | 4,648,976 |
Total non-current assets | 89,474,408 | 13,712,552 | 66,253,651 |
Total assets | 968,462,241 | 148,423,332 | 667,432,130 |
Current liabilities | |||
Short-term borrowings (including shortterm borrowings of VIE without recourse to the Company of RMB26,838,032 and RMB20,000,000 as of December 31, 2019 and 2020, respectively) | 20,000,000 | 3,065,134 | 26,838,032 |
Accounts payable (including accounts payable of VIE without recourse to the Company of RMB135,194,396 and RMB122,079,582 as of December 31, 2019 and 2020, respectively) | 131,599,482 | 20,168,503 | 148,828,041 |
Contract liabilities (including contract liabilities of VIE without recourse to the Company of RMB108,950,803 and RMB95,964,616 as of December 31, 2019 and 2020, respectively) | 95,992,689 | 14,711,523 | 111,953,381 |
Amounts due to a related party (including amounts due to a related party of VIE without recourse to the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020, respectively) | 2,813,041 | 431,117 | 3,180,095 |
Payables to an affiliate of a Series C Redeemable Convertible Preferred Shareholder (including payables to an affiliate of a Series C Redeemable Convertible Preferred Shareholder without recourse to the Company of nil and RMB230,086,500 as of December 31, 2019 and 2020, respectively) | 230,086,500 | 35,262,299 | |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIE without recourse to the Company of RMB52,880,022 and RMB 82,674,385 as of December 31, 2019 and 2020, respectively) | 93,967,456 | 14,401,143 | 68,768,498 |
Warrant liabilities | 202,271,900 | 30,999,525 | |
Total current liabilities | 776,731,068 | 119,039,244 | 359,568,047 |
Non-current liabilities | |||
Non-current warrant liabilities | 19,470,302 | 2,983,954 | 19,631,027 |
Long-term borrowings (including long-term borrowings of VIE without recourse to the Company of RMB 96,190,363 and nil as of December 31, 2019 and 2020, respectively) | 96,190,363 | ||
Total non-current liabilities | 19,470,302 | 2,983,954 | 115,821,390 |
Total liabilities | 796,201,370 | 122,023,198 | 475,389,437 |
Commitments and contingencies (Note 19) | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 4,875,825,761 | 747,252,990 | 1,444,141,422 |
SHAREHOLDERS' DEFICIT: | |||
Subscription receivables | (23,219,901) | ||
Accumulated other comprehensive income (loss) | 208,672,218 | 31,980,417 | (72,548,649) |
Accumulated deficit | (4,914,644,309) | (753,202,193) | (1,140,572,830) |
Total shareholders' deficit attributable to Cloopen Group Holding Limited | (4,705,910,151) | (721,212,283) | (1,236,284,513) |
Non-controlling interests | 2,345,261 | 359,427 | (15,814,216) |
Total shareholders' deficit | (4,703,564,890) | (720,852,856) | (1,252,098,729) |
Total liabilities, mezzanine equity and shareholders' deficit | 968,462,241 | 148,423,332 | 667,432,130 |
Series A Redeemable Convertible Preferred Stock | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 648,327,522 | 99,360,540 | 183,371,326 |
Series B Redeemable Convertible Preferred Stock | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 686,082,312 | 105,146,714 | 212,123,212 |
Series C Redeemable Convertible Preferred Stock | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 1,579,397,468 | 242,053,252 | 613,766,867 |
Series D Redeemable Convertible Preferred Stock | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 444,789,375 | 68,166,954 | 205,776,240 |
Series E Redeemable Convertible Preferred Stock | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 720,043,550 | 110,351,502 | 229,103,777 |
Series F Redeemable Convertible Preferred Shares | |||
MEZZANINE EQUITY | |||
Total mezzanine equity | 1,133,364,034 | 173,695,637 | |
Class A ordinary shares | |||
SHAREHOLDERS' DEFICIT: | |||
Pre-offering Ordinary Shares | 28,592 | 4,382 | 23,519 |
Total shareholders' deficit | 28,592 | 4,382 | 23,519 |
Class B ordinary Shares | |||
SHAREHOLDERS' DEFICIT: | |||
Pre-offering Ordinary Shares | 33,348 | 5,111 | 33,348 |
Total shareholders' deficit | 33,348 | 5,111 | ¥ 33,348 |
Series C and Series E Redeemable Convertible Preferred Shares | |||
MEZZANINE EQUITY | |||
Subscription receivables | ¥ 336,178,500 | $ 51,521,609 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares |
Restricted cash | ¥ 1,893,454 | $ 290,185 | ¥ 195,000 | |
Accounts receivable - third parties, net | 228,892,662 | 35,079,335 | 206,629,418 | |
Prepayments and other current assets | 139,257,239 | 21,342,106 | 113,775,649 | |
Short-term borrowings, including current portion of long-term borrowings | 20,000,000 | 3,065,134 | 26,838,032 | |
Accounts payable | 131,599,482 | 20,168,503 | 148,828,041 | |
Contract liabilities | 95,992,689 | 14,711,523 | 111,953,381 | |
Amounts due to a related party (including amounts due to a related party of VIE without recourse to the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020, respectively) | 2,813,041 | 431,117 | 3,180,095 | |
Accrued expenses and other current liabilities | 93,967,456 | $ 14,401,143 | 68,768,498 | |
Long-term borrowings | 96,190,363 | |||
VIE | ||||
Restricted cash | 1,893,454 | 195,000 | ||
Accounts receivable - third parties, net | 221,613,966 | 203,270,317 | ||
Prepayments and other current assets | 125,859,963 | 97,632,903 | ||
Short-term borrowings, including current portion of long-term borrowings | 20,000,000 | 26,838,032 | ||
Accounts payable | 122,079,582 | 135,194,396 | ||
Contract liabilities | 95,964,616 | 108,950,803 | ||
Amounts due to a related party (including amounts due to a related party of VIE without recourse to the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020, respectively) | 2,813,041 | 3,180,095 | ||
Amounts due to VIE | 230,086,500 | |||
Accrued expenses and other current liabilities | 82,674,385 | 52,880,022 | ||
Long-term borrowings | 0 | 96,190,363 | ||
VIE | Accounts receivables | ||||
Accounts receivable - third parties, net | 0 | 168,249,612 | ||
VIE | Other receivables | ||||
Prepayments and other current assets | ¥ 0 | ¥ 10,610,652 | ||
Series A Redeemable Convertible Preferred Stock | ||||
Redeemable Convertible Preferred Shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Redeemable Convertible Preferred, shares authorized | shares | 18,642,038 | 18,642,038 | 18,642,038 | |
Redeemable Convertible Preferred Shares, shares issued | shares | 18,642,038 | 18,642,038 | 18,642,038 | |
Redeemable Convertible Preferred Shares, shares outstanding | shares | 18,642,038 | 18,642,038 | 18,642,038 | |
Redeemable Convertible Preferred Shares, Redemption value | ¥ 648,327,522 | ¥ 183,371,326 | ||
Redeemable Convertible Preferred Shares, Liquidation value | ¥ 29,420,005 | ¥ 29,118,733 | ||
Series B Redeemable Convertible Preferred Stock | ||||
Redeemable Convertible Preferred Shares, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Redeemable Convertible Preferred, shares authorized | shares | 19,617,225 | 19,617,225 | 19,617,225 | |
Redeemable Convertible Preferred Shares, shares issued | shares | 19,617,225 | 19,617,225 | 19,617,225 | |
Redeemable Convertible Preferred Shares, shares outstanding | shares | 19,617,225 | 19,617,225 | 19,617,225 | |
Redeemable Convertible Preferred Shares, Redemption value | ¥ 686,082,312 | ¥ 212,123,212 | ||
Redeemable Convertible Preferred Shares, Liquidation value | 104,747,884 | 103,675,227 | ||
Series C Redeemable Convertible Preferred Stock | ||||
Amounts due to VIE | ¥ 230,086,500 | ¥ 0 | ||
Redeemable Convertible Preferred Shares, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Redeemable Convertible Preferred, shares authorized | shares | 44,659,956 | 44,659,956 | 44,659,956 | |
Redeemable Convertible Preferred Shares, shares issued | shares | 44,659,956 | 44,659,956 | 44,659,956 | |
Redeemable Convertible Preferred Shares, shares outstanding | shares | 44,659,956 | 44,659,956 | 44,659,956 | |
Redeemable Convertible Preferred Shares, Redemption value | ¥ 1,579,397,468 | ¥ 613,766,867 | ||
Redeemable Convertible Preferred Shares, Liquidation value | ¥ 556,267,838 | ¥ 550,571,448 | ||
Series D Redeemable Convertible Preferred Stock | ||||
Redeemable Convertible Preferred Shares, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Redeemable Convertible Preferred, shares authorized | shares | 12,462,157 | 12,462,157 | 12,462,157 | |
Redeemable Convertible Preferred Shares, shares issued | shares | 12,462,157 | 12,462,157 | 12,462,157 | |
Redeemable Convertible Preferred Shares, shares outstanding | shares | 12,462,157 | 12,462,157 | 12,462,157 | |
Redeemable Convertible Preferred Shares, Redemption value | ¥ 444,789,375 | ¥ 205,776,240 | ||
Redeemable Convertible Preferred Shares, Liquidation value | ¥ 207,905,267 | ¥ 205,776,240 | ||
Series E Redeemable Convertible Preferred Stock | ||||
Redeemable Convertible Preferred Shares, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Redeemable Convertible Preferred, shares authorized | shares | 20,137,444 | 20,137,444 | 13,040,152 | |
Redeemable Convertible Preferred Shares, shares issued | shares | 20,137,444 | 20,137,444 | 13,040,152 | |
Redeemable Convertible Preferred Shares, shares outstanding | shares | 20,137,444 | 20,137,444 | 13,040,152 | |
Redeemable Convertible Preferred Shares, Redemption value | ¥ 720,043,550 | ¥ 229,103,777 | ||
Redeemable Convertible Preferred Shares, Liquidation value | ¥ 330,572,837 | ¥ 229,103,777 | ||
Series F Redeemable Convertible Preferred Shares | ||||
Redeemable Convertible Preferred Shares, par value | $ / shares | $ 0.0001 | 0.0001 | ||
Redeemable Convertible Preferred, shares authorized | shares | 43,381,194 | 43,381,194 | 0 | |
Redeemable Convertible Preferred Shares, shares issued | shares | 31,581,509 | 31,581,509 | 0 | |
Redeemable Convertible Preferred Shares, shares outstanding | shares | 31,581,509 | 31,581,509 | 0 | |
Redeemable Convertible Preferred Shares, Redemption value | ¥ 1,133,364,034 | |||
Redeemable Convertible Preferred Shares, Liquidation value | ¥ 599,932,345 | |||
Class A ordinary shares | ||||
Ordinary Shares, par value | $ / shares | $ 0.0001 | |||
Ordinary Shares, shares authorized | shares | 126,242,010 | 126,242,010 | 214,973,841 | |
Ordinary Shares shares issued | shares | 41,932,446 | 41,932,446 | 34,724,614 | |
Ordinary Shares, shares outstanding | shares | 34,795,851 | 34,795,851 | 24,869,721 | |
Class B ordinary Shares | ||||
Ordinary Shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary Shares, shares authorized | shares | 214,857,976 | 214,857,976 | 170,492,060 | |
Ordinary Shares shares issued | shares | 55,957,962 | 55,957,962 | 55,957,962 | |
Ordinary Shares, shares outstanding | shares | 55,957,962 | 55,957,962 | 55,957,962 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Revenues (including related parties amounts of RMB38,524,686, RMB38,280,256 and RMB 25,681,928 for the years ended December 31, 2018, 2019 and 2020, respectively) | ¥ 767,688,120 | $ 117,653,352 | ¥ 650,282,167 | ¥ 501,488,667 |
Cost of revenues (including related parties amounts of RMB1,287,644, RMB7,901,958 and RMB386,321 for the years ended December 31, 2018, 2019 and 2020, respectively) | (460,703,549) | (70,605,908) | (382,868,343) | (312,990,993) |
Gross profit | 306,984,571 | 47,047,444 | 267,413,824 | 188,497,674 |
Operating expenses: | ||||
Research and development expenses (including related parties amounts of nil, nil and RMB6,006,664 for the years ended December 31, 2018, 2019 and 2020, respectively) | (173,015,450) | (26,515,778) | (161,851,588) | (125,990,376) |
Selling and marketing | (211,365,882) | (32,393,239) | (173,083,097) | (144,522,222) |
General and administrative expenses | (205,895,537) | (31,554,872) | (108,315,378) | (92,365,690) |
Total operating expenses | (590,276,869) | (90,463,889) | (443,250,063) | (362,878,288) |
Operating loss | (283,292,298) | (43,416,445) | (175,836,239) | (174,380,614) |
Interest expenses | (14,301,032) | (2,191,729) | (6,750,341) | (1,685,245) |
Interest income | 1,166,581 | 178,786 | 989,438 | 416,188 |
Investment income | 12,192 | 1,869 | 114,192 | 384,622 |
Impairment loss of long-term investments | (5,000,000) | |||
Gain from disposal of equity method investments | 366,687 | |||
Gain from disposal of subsidiaries, net | 14,562,030 | 2,231,729 | 21,421 | |
Share of losses of equity method investments | (2,446,221) | (374,900) | (14,592) | (546,530) |
Change in fair value of warrant liabilities | (221,462,056) | (33,940,545) | 137,969 | (450,083) |
Change in fair value of long-term investments | 2,154,334 | 330,166 | 900,000 | 17,700,000 |
Foreign currency exchange gains (losses), net | 5,390,766 | 826,171 | (2,403,599) | 10,401,825 |
Loss before income taxes | (498,215,704) | (76,354,898) | (182,841,751) | (152,793,150) |
Income tax expense | (1,623,961) | (248,883) | (652,610) | (2,672,098) |
Net loss | (499,839,665) | (76,603,781) | (183,494,361) | (155,465,248) |
Accretion and modifications of Redeemable Convertible Preferred Shares | (3,327,579,958) | (509,973,940) | (141,031,943) | (106,867,153) |
Deemed dividends to Series E Redeemable Convertible Preferred Shareholders | (12,070,034) | (1,849,814) | ||
Net loss | (3,839,489,657) | (588,427,535) | (324,526,304) | (262,332,401) |
Net loss attributable to noncontrolling interests | (7,657,769) | (1,173,604) | (8,692,578) | (16,219,821) |
Net loss attributable to Cloopen Group Holding Limited | (3,831,831,888) | (587,253,931) | (315,833,726) | (246,112,580) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net of nil income taxes | 271,762,097 | 41,649,364 | (15,305,596) | (59,467,497) |
Unrealized holding gain on short-term investments and availableforsale debt securities, net of nil income taxes | 9,311,168 | 1,426,999 | 121,000 | 606,265 |
Less: reclassification adjustment for gain on short-term investments and available-for-sale debt securities realized in net income, net of nil income taxes | (12,192) | (1,869) | (114,192) | (384,622) |
Total other comprehensive income (loss) | 281,061,073 | 43,074,494 | (15,298,788) | (59,245,854) |
Comprehensive loss | (3,558,428,584) | (545,353,041) | (339,825,092) | (321,578,255) |
Comprehensive loss attributable to noncontrolling interests | (7,817,563) | (1,198,094) | (8,669,940) | (16,110,735) |
Comprehensive loss attributable to Cloopen Group Holding Limited | ¥ (3,550,611,021) | $ (544,154,947) | ¥ (331,155,152) | ¥ (305,467,520) |
Net loss per ordinary share | ||||
- Basic and diluted | (per share) | ¥ (45.12) | $ (6.91) | ¥ (3.62) | ¥ (2.88) |
Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share | ||||
- Basic and diluted | shares | 85,103,964 | 85,103,964 | 89,567,463 | 91,083,938 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||
Revenues, related parties amounts | ¥ 25,681,928 | ¥ 38,280,256 | ¥ 38,524,686 |
Cost of revenues, related parties amounts | 386,321 | 7,901,958 | 1,287,644 |
Research and development expenses, related parties amounts | 6,006,664 | 0 | 0 |
Foreign currency translation adjustment, income taxes | 0 | 0 | 0 |
Unrealized holding gain on available for sale securities, income taxes | 0 | 0 | 0 |
Reclassification adjustment for gain on available for sale securities realized in net income, income taxes | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT | Additional paid-in capitalCNY (¥) | Subscription receivableCNY (¥) | Accumulated other comprehensive lossCNY (¥) | Accumulated other comprehensive lossUSD ($) | Accumulated deficitCNY (¥) | Accumulated deficitUSD ($) | Total shareholders' deficit attributable to Cloopen Group Holding LimitedCNY (¥) | Total shareholders' deficit attributable to Cloopen Group Holding LimitedUSD ($) | Non-controlling interestsCNY (¥) | Non-controlling interestsUSD ($) | Class A ordinary sharesCNY (¥)shares | Class A ordinary sharesUSD ($)shares | Class B ordinary SharesCNY (¥)shares | Class B ordinary SharesUSD ($)shares | CNY (¥) | USD ($) |
Balance as of beginning of year at Dec. 31, 2017 | ¥ (23,219,901) | ¥ 2,127,717 | ¥ (617,135,467) | ¥ (638,170,784) | ¥ 10,302,025 | ¥ 23,519 | ¥ 33,348 | ¥ (627,868,759) | ||||||||
Balance as of beginning of year (in shares) at Dec. 31, 2017 | shares | 55,957,962 | 55,957,962 | ||||||||||||||
Balance as of beginning of year (in shares) at Dec. 31, 2017 | shares | 34,724,614 | 34,724,614 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Change in the ownership interest in the subsidiaries | ¥ 597,565 | 597,565 | (597,565) | |||||||||||||
Net loss | (139,245,427) | (139,245,427) | (16,219,821) | (155,465,248) | ||||||||||||
Share-based compensation | 6,792,679 | 6,792,679 | 6,792,679 | |||||||||||||
Accretion of Redeemable Convertible Preferred Shares | (7,390,244) | (99,476,909) | (106,867,153) | (106,867,153) | ||||||||||||
Foreign currency translation adjustment, net of nil income taxes | (59,487,926) | (59,487,926) | 20,429 | (59,467,497) | ||||||||||||
Unrealized holding gain on short-term investments and availableforsale debt securities, net of nil income taxes | 366,453 | 366,453 | 239,812 | 606,265 | ||||||||||||
Less: reclassification adjustment for gain on short-term investments and available-for-sale debt securities realized in net income, net of nil income taxes | (233,467) | (233,467) | (151,155) | (384,622) | ||||||||||||
Balance as of end of year at Dec. 31, 2018 | (23,219,901) | (57,227,223) | (855,857,803) | (936,248,060) | (6,406,275) | ¥ 23,519 | ¥ 33,348 | (942,654,335) | ||||||||
Balance as of end of year (in shares) at Dec. 31, 2018 | shares | 55,957,962 | 55,957,962 | ||||||||||||||
Balance as of end of year (in shares) at Dec. 31, 2018 | shares | 34,724,614 | 34,724,614 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Change in the ownership interest in the subsidiaries | 1,104,816 | 1,104,816 | 738,001 | 1,842,817 | ||||||||||||
Inducement cost | 4,768,612 | 4,768,612 | 4,768,612 | |||||||||||||
Net loss | (174,801,783) | (174,801,783) | (8,692,578) | (183,494,361) | ||||||||||||
Share-based compensation | 27,454,903 | 27,454,903 | 27,454,903 | |||||||||||||
Accretion of Redeemable Convertible Preferred Shares | (31,118,699) | (109,913,244) | (141,031,943) | (141,031,943) | ||||||||||||
Foreign currency translation adjustment, net of nil income taxes | (15,325,783) | (15,325,783) | 20,187 | (15,305,596) | ||||||||||||
Unrealized holding gain on short-term investments and availableforsale debt securities, net of nil income taxes | 76,276 | 76,276 | 44,724 | 121,000 | ||||||||||||
Less: reclassification adjustment for gain on short-term investments and available-for-sale debt securities realized in net income, net of nil income taxes | (71,919) | (71,919) | (42,273) | (114,192) | ||||||||||||
Balance as of end of year at Dec. 31, 2019 | (23,219,901) | (72,548,649) | (1,140,572,830) | (1,236,284,513) | (15,814,216) | ¥ 23,519 | ¥ 33,348 | (1,252,098,729) | ||||||||
Balance as of end of year (in shares) at Dec. 31, 2019 | shares | 24,869,721 | 24,869,721 | 55,957,962 | 55,957,962 | ||||||||||||
Balance as of end of year (in shares) at Dec. 31, 2019 | shares | 34,724,614 | 34,724,614 | 55,957,962 | 55,957,962 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of ordinary shares to Baiyi's noncontrolling interest shareholders as share based compensation | 33,950,732 | 33,953,355 | ¥ 2,623 | 33,953,355 | ||||||||||||
Issuance of ordinary shares to Baiyi's noncontrolling interest shareholders as share based compensation (in shares) | shares | 3,706,745 | 3,706,745 | ||||||||||||||
Purchase of the non-controlling interests of the Group's subsidiaries | 35,255,509 | 35,253,059 | (19,160,340) | ¥ (2,450) | (16,092,719) | |||||||||||
Purchase of the non-controlling interests of the Group's subsidiaries (in shares) | shares | 3,501,087 | 3,501,087 | ||||||||||||||
Receipt of subscription receivables | 1,045 | 1,045 | 1,045 | |||||||||||||
Change in the ownership interest in the subsidiaries | 831,703 | 831,703 | (6,816,700) | (5,984,997) | ||||||||||||
Net loss | (492,181,896) | (492,181,896) | (7,657,769) | (499,839,665) | $ (76,603,781) | |||||||||||
Share-based compensation | 59,896,889 | ¥ 23,218,856 | 83,115,745 | 83,115,745 | ||||||||||||
Accretion of Redeemable Convertible Preferred Shares | ¥ (57,760,409) | (3,269,819,549) | (3,327,579,958) | (3,327,579,958) | ||||||||||||
Deemed dividends to Series E Redeemable Convertible Preferred Shareholders | (12,070,034) | (12,070,034) | (12,070,034) | (1,849,814) | ||||||||||||
Foreign currency translation adjustment, net of nil income taxes | 271,921,523 | 271,921,523 | (159,426) | 271,762,097 | 41,649,364 | |||||||||||
Unrealized holding gain on short-term investments and availableforsale debt securities, net of nil income taxes | 9,307,147 | 9,307,147 | 4,021 | 9,311,168 | 1,426,999 | |||||||||||
Less: reclassification adjustment for gain on short-term investments and available-for-sale debt securities realized in net income, net of nil income taxes | (7,803) | (7,803) | (4,389) | (12,192) | (1,869) | |||||||||||
Balance as of end of year at Dec. 31, 2020 | ¥ 208,672,218 | $ 31,980,417 | ¥ (4,914,644,309) | $ (753,202,193) | ¥ (4,705,910,151) | $ (721,212,283) | ¥ 2,345,261 | $ 359,427 | ¥ 28,592 | $ 4,382 | ¥ 33,348 | $ 5,111 | ¥ (4,703,564,890) | $ (720,852,856) | ||
Balance as of end of year (in shares) at Dec. 31, 2020 | shares | 34,795,851 | 34,795,851 | 55,957,962 | 55,957,962 | ||||||||||||
Balance as of end of year (in shares) at Dec. 31, 2020 | shares | 41,932,446 | 41,932,446 | 55,957,962 | 55,957,962 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT | |||
Foreign currency translation adjustment, income taxes | ¥ 0 | ¥ 0 | ¥ 0 |
Unrealized holding gain on available for sale securities, income taxes | 0 | 0 | 0 |
Reclassification adjustment for gain on available for sale securities realized in net income, income taxes | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Operating activities: | ||||
Net loss | ¥ (499,839,665) | $ (76,603,781) | ¥ (183,494,361) | ¥ (155,465,248) |
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Allowance for doubtful accounts | 19,432,158 | 2,978,109 | 8,278,788 | 151,315 |
Share-based compensation | 117,066,477 | 17,941,223 | 27,454,903 | 6,792,679 |
Depreciation and amortization | 8,598,057 | 1,317,710 | 8,291,998 | 7,678,156 |
Deferred income tax expense (benefit) | (868,750) | (133,142) | 344,760 | 1,699,063 |
Loss (gain) from disposal of property and equipment | (49,014) | (7,512) | 79,293 | 535 |
Impairment on longterm investments | 5,000,000 | |||
Investment income | (12,192) | (1,869) | (114,192) | (384,622) |
Accretion of interest expenses on unsecured loans | 12,717,532 | 1,949,047 | ||
Gain from disposal of equity method investments | (366,687) | |||
Gain from disposal of subsidiaries, net | (14,562,030) | (2,231,729) | (21,421) | |
Share of losses of equity method investments | 2,446,221 | 374,900 | 14,592 | 546,530 |
Change in fair value of warrant liabilities | 221,462,056 | 33,940,545 | (137,969) | 450,083 |
Change in fair value of long-term investments | (2,154,334) | (330,166) | (900,000) | (17,700,000) |
Unrealized foreign exchange (gain)/loss | (5,390,766) | (826,171) | 2,403,599 | (10,401,825) |
Changes in operating assets and liabilities, net of effect of disposal of subsidiaries: | ||||
Accounts receivable - third parties, net | (38,500,863) | (5,900,515) | (84,015,130) | 10,756,355 |
Accounts receivable - a related party, net | 3,215,615 | 492,815 | 7,515,391 | 5,226,503 |
Contract assets | (14,749,988) | (2,260,535) | (7,795,842) | 1,035,973 |
Amounts due from related parties | (39,623) | (6,072) | (3,935,606) | |
Prepayments and other current assets | (20,745,602) | (3,179,403) | (27,104,905) | (5,922,204) |
Other noncurrent assets | 824,463 | 126,354 | 356,087 | (178,043) |
Accounts payable | (17,224,423) | (2,639,758) | 58,573,620 | (14,718,200) |
Contract liabilities | (15,960,692) | (2,446,083) | 14,690,962 | 21,893,568 |
Amounts due to a related party | (367,054) | (56,253) | 2,024,992 | 1,155,103 |
Accrued expenses and other current liabilities | 20,583,712 | 3,154,592 | 11,105,885 | (17,866,765) |
Net cash used in operating activities | (224,118,705) | (34,347,694) | (166,384,556) | (160,617,731) |
Investing activities: | ||||
Cash paid for purchase of property and equipment | (5,469,561) | (838,247) | (10,094,269) | (7,661,615) |
Cash paid for purchase of intangible assets | (515,000) | (78,927) | (378,069) | (1,290,061) |
Cash received from disposal of affiliates | 3,435,002 | |||
Cash paid for purchase of longterm investments | (457,326) | (70,088) | (5,688,340) | (1,000,000) |
Cash received from disposal of property and equipment | 62,416 | 9,566 | 496,221 | |
Cash paid for purchase of short-term investments | (34,000,000) | (49,000,000) | ||
Cash received from sale of short-term investments | 2,512,192 | 385,010 | 34,614,192 | 58,384,622 |
Cash disposed of from deconsolidation of subsidiaries | (1,462,776) | (224,180) | ||
Payment of interest free loans provided to related parties | (3,950,000) | (605,364) | (4,000,000) | |
Collection of interest free loans provided to related parties | 4,160,000 | 637,548 | 310,000 | 3,180,000 |
Cash paid for term deposits | (160,349,418) | (24,574,623) | (69,762,000) | |
Cash received from maturity of term deposits | 69,762,000 | 10,691,494 | ||
Net cash provided by / (used in) investing activities | (95,707,473) | (14,667,811) | (84,502,265) | 2,047,948 |
Financing activities: | ||||
Payment of issuance costs | (6,281,530) | (962,687) | (12,427,087) | (1,793,926) |
Proceeds from long-term borrowings | 106,092,000 | |||
Repayment of long-term borrowings | (106,092,000) | (16,259,310) | ||
Cash paid to acquire subsidiaries' equity interests held by non-controlling shareholders, net | (16,095,169) | (2,466,693) | (4,000,000) | |
Payment of initial public offering ("IPO") costs | (5,713,633) | (875,653) | ||
Cash received from capital contribution from non-controlling shareholder | 2,145,732 | |||
Proceeds from short-term bank borrowings | 20,000,000 | 3,065,134 | 19,941,451 | 33,731,653 |
Repayment for short-term bank borrowings | (26,838,032) | (4,113,108) | (12,988,851) | (27,502,356) |
Net cash provided by financing activities | 457,641,336 | 70,136,603 | 325,409,445 | 165,410,731 |
Effect of foreign currency exchange rate changes on cash | (3,669,576) | (562,388) | 2,866,654 | 7,821,409 |
Net increase in cash and restricted cash | 134,145,582 | 20,558,710 | 77,389,278 | 14,662,357 |
Cash and restricted cash at the beginning of the year | 164,313,081 | 25,182,081 | 86,923,803 | 72,261,446 |
Cash and restricted cash at the end of the year | 298,458,663 | 45,740,791 | 164,313,081 | 86,923,803 |
Supplemental information | ||||
Interest paid | 1,607,706 | 246,392 | 1,844,998 | 1,442,249 |
Income tax paid | 131,921 | 20,218 | 43,389 | 394,057 |
Income taxes refund | (32,764) | (5,021) | (897) | (14,359) |
Non-cash investing and financing activities: | ||||
Transfer of equity interest of subsidiaries at nil consideration | 5,632,315 | 863,190 | 3,303,447 | 597,565 |
Issuance of ordinary shares as the consideration for purchase of noncontrolling interests | 27,025,334 | 4,141,814 | ||
Accrual for IPO Costs | 275,120 | 42,164 | ||
Accrual for Series F financing issuance costs | 5,548,788 | 850,389 | ||
Exercise of Series E Warrant | 16,549,825 | 2,536,372 | ||
Series D Redeemable Convertible Preferred Shares | ||||
Financing activities: | ||||
Proceeds from issuance of Redeemable Convertible Preferred Shares | ¥ 160,975,360 | |||
Series E Redeemable Convertible Preferred Shares | ||||
Financing activities: | ||||
Proceeds from issuance of Redeemable Convertible Preferred Shares | ¥ 226,646,200 | |||
Series F Redeemable Convertible Preferred Shares | ||||
Financing activities: | ||||
Proceeds from issuance of Redeemable Convertible Preferred Shares | ¥ 598,661,700 | $ 91,748,920 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Consideration for transferring equity interest of subsidiaries | ¥ 0 |
DESCRIPTION OF BUSINESS, ORGANI
DESCRIPTION OF BUSINESS, ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2020 | |
DESCRIPTION OF BUSINESS, ORGANIZATION AND BASIS OF PRESENTATION | |
DESCRIPTION OF BUSINESS, ORGANIZATION AND BASIS OF PRESENTATION | 1. DESCRIPTION OF BUSINESS, ORGANIZATION AND BASIS OF PRESENTATION Organization and principal activities Cloopen Group Holding Limited (“the Company”), through its wholly-owned subsidiaries, consolidated variable interest entity (“VIE”) and VIE’s subsidiaries (collectively referred to as “the Group”), is principally engaged in providing integrated communication services based on cloud computing technology. The Group’s principal operations and geographic markets are mainly in the People’s Republic of China (“PRC”). The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, consolidated VIE and VIE’s subsidiaries. The VIE arrangements The Group operates its cloud communication business in the PRC through Beijing Ronglian Yitong Information Technology Co., Ltd. (“Ronglian Yitong”, or the “VIE”), a limited liability company established under the laws of the PRC on March 31, 2009. Ronglian Yitong and its subsidiaries holds the necessary PRC operating licenses for the online businesses. The equity interests of Ronglian Yitong are legally held by Mr. Changxun Sun, the founder, chairman of board of directors and chief executive officer, Mr. Jianhong Zhou, the director of the Company, Lhasa Heye Investment Management Co., Ltd., and Beijing Hongshan Shengde Equity Investment Center (Limited Partnership) who act as nominee equity holders of the VIE on behalf of Anxun Guantong (Beijing) Technology Co., Ltd. (“Anxun Guantong” or “WFOE”), the Company’s wholly-owned subsidiary. A series of contractual agreements, including Powers of Attorney, Exclusive Business Cooperation Agreement, Equity Pledge Agreement, Exclusive Option Agreement and Spousal Consent Letter (collectively, the “VIE Agreements”), were entered among the Company, Anxun Guantong, Ronglian Yitong and its nominee equity holders. Pursuant to the VIE Agreements, the Company is able to exercise effective control over, bears the risks of, enjoys substantially all of the economic benefits of the VIE, and has an exclusive option to purchase all or part of the equity interests in the VIE when and to the extent permitted by the PRC law at the lowest price possible. The Company’s management concluded that Ronglian Yitong is a VIE and the Company is its primary beneficiary. As such, the consolidated financial statements of the VIE are included in the consolidated financial statements of the Company. The principal terms of the VIE Agreements are further described below. 1) Powers of Attorney The Company and each of the equity holders of Ronglian Yitong entered into Powers of Attorney. Pursuant to the Powers of Attorney, the equity holders of Ronglian Yitong irrevocably appointed Anxun Guantong as their attorney-in-fact to exercise all equity holder rights, including, but not limited to, proposing, convening and attending in the equity holders’ meeting, appointing or removing directors, executive officers and senior management, disposing of all or part of the equity holder’s interests in Ronglian Yitong, casting the equity holders’ votes on matters requiring equity holders’ approval and doing all other acts in the capacity of the equity holders as permitted by Ronglian Yitong’s Memorandum and Articles of Association. In addition, the Company has a right to assign its rights and benefits under the Powers of Attorney to any other parties without an advance notice to the equity holders of Ronglian Yitong. The Powers of Attorney shall continue in force and be irrevocable as long as the equity holders of Ronglian Yitong remain as the equity holders of Ronglian Yitong. 2) Exclusive Business Cooperation Agreement Anxun Guantong and Ronglian Yitong entered into an Exclusive Business Cooperation Agreement, whereby Anxun Guantong is appointed as the exclusive service provider for the provision of business support, technology and consulting services to Ronglian Yitong. Unless a written consent is given by Anxun Guantong, Ronglian Yitong is not allowed to engage a third party to provide such services, while Anxun Guantong is able to designate another party to render such services to Ronglian Yitong. Ronglian Yitong shall pay Anxun Guantong on a monthly basis a service fee, which shall be equal to 100% of the monthly net profits of Ronglian Yitong, and Anxun Guantong has the sole discretion to adjust the basis of calculation of the service fee amount according to service provided to Ronglian Yitong. Anxun Guantong owns the exclusive intellectual property rights, whether created by Anxun Guantong or Ronglian Yitong, as a result of the performance of the Exclusive Business Cooperation Agreement unless terminated in writing by Anxun Guantong. The Exclusive Business Cooperation Agreement may be extended if confirmed in writing by Anxun Guantong prior to the expiration thereof. The extended term shall be determined by Anxun Guantong, and Ronglian Yitong shall accept such extended term unconditionally. 3) Equity Pledge Agreement An Equity Pledge Agreement was entered into by and among Anxun Guantong, Ronglian Yitong and equity holders of Ronglian Yitong. To guarantee payment from Ronglian Yitong, including but not limited to the service fee pursuant to the Exclusive Business Cooperation Agreement, and the performance of Ronglian Yitong and the nominee equity holders’ obligations under the contractual arrangements including the Exclusive Business Cooperation Agreement, Exclusive Option Agreement and Powers of Attorney, the equity holders of Ronglian Yitong pledged their respective equity in Ronglian Yitong to Anxun Guantong under the Equity Pledge Agreement as collateral. In the event Ronglian Yitong fails to pay Anxun Guantong its service fee, Anxun Guantong will have the right to sell the pledged equity and apply the proceeds received to pay any outstanding service fees due by Ronglian Yitong to Anxun Guantong. The equity holders of Ronglian Yitong agree that, during the term of the Equity Pledge Agreement, they will not dispose of the pledged equity or create or allow any encumbrance on the pledged equity, and they also agree that Anxun Guantong’s rights relating to the equity pledges shall not be prejudiced by any legal actions of the equity holders of Ronglian Yitong , their successors or their designees. Except that the pledge of approximately 1.55% of the equity interests of VIE is subject to the registration in compliance with the PRC Property Rights Law, the equity pledge was registered with the relevant local administration for industry and commerce in October 2019 and may only be terminated upon the fulfillment of all contractual obligations under the Exclusive Business Cooperation Agreement, Exclusive Option Agreement and Powers of Attorney. During the term of the Equity Pledge Agreement, Anxun Guantong is entitled to receive dividends attributable to the pledged Ronglian Yitong equity. 4) Exclusive Option Agreement Each of the equity holders of Ronglian Yitong entered into an Exclusive Option Agreement with Anxun Guantong, and Ronglian Yitong, pursuant to which the equity holders of Ronglian Yitong granted Anxun Guantong or other person upon the designation by Anxun Guantong, an irrevocable and exclusive option to purchase, at its discretion and to the extent permitted under the PRC law, all or part of the equity holders’ interests in Ronglian Yitong at the lowest price that the PRC law permits at the time unless a valuation of the equity is required by the PRC law. The equity holders of Ronglian Yitong commit that without the prior written consent of Anxun Guantong, the equity holders of Ronglian Yitong will not, among other things, (1) change or amend the Memorandum and Articles of Association , increase or decrease Ronglian Yitong’s registered capital, change its structure of registered capital in other manners; (2) sell, transfer, mortgage or dispose of in any manner any assets of Ronglian Yitong or legal or beneficial interest in the business or revenue of Ronglian Yitong, or allow the encumbrance thereon of any security interest; (3) incur, inherit, guarantee or suffer the existence of any debt, except for (i) debts incurred in the ordinary course of business other than through loans and (ii) debts disclosed to Anxun Guantong for which Anxun Guantong’s written consent has been obtained; (4) providing any person with any loan or credit or guarantee in any form; (5) cause or permit Ronglian Yitong to merge, consolidate with, acquire or invest in any person, and/or sell permit Ronglian Yitong to sell assets with a value of over RMB500,000; (6) in any manner distribute dividends to its shareholders; (7) create any pledge or encumbrance on their equity interests in Ronglian Yitong; (8) transfer or otherwise dispose of their equity interests in Ronglian Yitong and its equity holders shall appoint those individuals recommended by Anxun Guantong as directors of Ronglian Yitong. Ronglian Yitong shall provide operating and financial information to the Company at the request of Anxun Guantong and ensure the continuance of the business. The Exclusive Option Agreement will remain effective until all equity interests in Ronglian Yitong held by its equity holders are transferred or assigned to the Company or its designee. Ronglian Yitong and its equity holders shall not have any right to terminate the Exclusive Option Agreement. 5) Spousal Consent Letter Pursuant to the Spousal Consent Letters executed by the spouse of the principal individual shareholder of the VIE, the signing spouse confirmed that she does not enjoy any right or interest in connection with the equity interests of the VIE. The spouse also irrevocably agreed that she would not claim in the future any right or interest in connection with the equity interests in the VIE held by her spouse. Risks in relation to the VIE structure In the opinion of the Company’s management, the VIE Agreements have resulted in the WFOE having the power to direct activities that most significantly impact the VIE, including appointing key management, setting up operating policies, exerting financial controls and transferring profit or assets out of the VIE at its discretion. The Company considers that it has the right to receive all the benefits and assets of the VIE. As the VIE was established as a limited liability company under the PRC law, its creditors do not have recourse to the general credit of the Company for the liabilities of the VIE, and the Company does not have the obligation to assume the liabilities of the VIE. The Company has determined that the VIE Agreements are in compliance with the PRC laws and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the VIE Agreements; and if the equity holders of the VIE were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms. The Company’s ability to control the VIE also depends on the rights provided to the Company under the Powers of Attorney to vote on all matters requiring equity holders’ approval in the respective VIE. As noted above, the Company believes these Powers of Attorney are legally enforceable but yet they may not be as effective as direct equity ownership. In addition, if the corporate structure of the Group or the contractual arrangements among the Company, Anxun Guantong, the VIE and its respective equity holders were found to be in violation of any existing PRC laws and regulations, the relevant PRC regulatory authorities could: ● revoke the business license and/or operating licenses of such entities; ● discontinue or place restrictions or onerous conditions on the Group’s operations; ● impose fines, confiscating the income from the VIE, or imposing other requirements with which the Group may not be able to comply; ● require the Group to restructure its ownership structure or operations, including terminating the contractual arrangements with the VIE and deregistering the equity pledges of the VIE, which in turn would affect the Company’s ability to consolidate, derive economic interests from, or exert effective control over the VIE; or ● restrict or prohibit our use of the proceeds of this offering to finance our business and operations in the PRC. The imposition of any of the above restrictions or actions may result in a material and adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Company to lose the right to direct the activities of the VIE or the right to receive its economic benefits, the Company would no longer be able to consolidate the VIE. The Company’s management believes that the likelihood to lose the Company’s current ownership structure or the contractual arrangements with the VIE is remote based on the current facts and circumstances. There is no VIE in which the Company has a variable interest but is not the primary beneficiary. Currently there is no contractual arrangement that could require the Company to provide additional financial support to the VIE. The following consolidated assets and liabilities information of the Group’s VIE as of December 31, 2019 and 2020, and consolidated revenues, net loss and cash flow information for the years then ended, have been included in the accompanying consolidated financial statements: December 31, 2019 2020 RMB RMB Cash 120,450,112 58,443,775 Restricted cash 195,000 1,893,454 Short-term investments 2,501,024 — Accounts receivable - third parties, net* 203,270,317 221,613,966 Accounts receivable - related parties, net** 15,010,001 11,355,167 Contract assets 25,249,719 36,307,474 Amounts due from related parties 6,445,606 6,275,229 Prepayments and other current assets 97,632,903 125,859,963 Total current assets 470,754,682 461,749,028 Long-term investments 40,077,207 66,162,184 Property and equipment, net 10,261,327 11,163,961 Intangible assets, net 2,004,396 2,022,583 Deferred income tax assets 180,222 1,048,972 Other non-current assets 4,445,326 3,620,864 Total assets 527,723,160 545,767,592 Short-term borrowings 26,838,032 20,000,000 Accounts payable 135,194,396 122,079,582 Contract liabilities 108,950,803 95,964,616 Amounts due to related parties*** 595,457,305 631,164,373 Payables to an affiliate of a Series C Redeemable Convertible Preferred Shareholder — 230,086,500 Accrued expenses and other current liabilities 52,880,022 82,674,385 Total current liabilities 919,320,558 1,181,969,456 Long-term borrowings 96,190,363 — Total liabilities 1,015,510,921 1,181,969,456 * As of December 31, 2019, accounts receivable - third parties, net and prepayments and other current assets include accounts receivable - third parties and other receivables of Ronglian Yitong Technology that were pledged to secure bank borrowings amounting to RMB168,249,612 and RMB10,610,652, respectively. The secured bank loans matured on December 18, 2020 and accounts receivable - third parties and other receivables of Ronglian Yitong Technology were released from pledge on the same day (please refer to Note 10 for details). ** Accounts receivable-related parties, net includes accounts receivable, net due from the Company and its subsidiaries, which are eliminated upon consolidation, and accounts receivable, net due from a company that controls a shareholder of the Company of RMB12,501,982 and RMB9,447,148 as of December 31, 2019 and 2020. *** Amounts due to related parties include amounts due to the Company and its subsidiaries, which are eliminated upon consolidation, and amounts due to a company that controls a shareholder of the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020. Year ended December 31, 2018 2019 2020 RMB RMB RMB Revenues 498,345,481 640,145,645 738,931,945 Net loss (111,087,374) (145,457,499) (156,301,399) Net cash used in operating activities (4,590,430) (31,078,480) (20,062,451) Net cash provided by / (used in) investing activities 2,098,931 (15,547,418) (4,840,970) Net cash provided by / (used in) financing activities 6,229,297 113,044,600 (35,404,462) Net increase / (decrease) in cash and restricted cash 3,737,798 66,418,702 (60,307,883) Cash and restricted cash at the beginning of the year 50,488,612 54,226,410 120,645,112 Cash and restricted cash at the end of the year 54,226,410 120,645,112 60,337,229 In accordance with VIE Agreements, WFOE has the power to direct the activities of the VIE. Therefore, the Company considers that there are no assets in the VIE that can be used only to settle obligations of the VIE, except for restricted cash of RMB195,000 and RMB1,893,454 as of December 31, 2019 and 2020, respectively, accounts receivable of RMB168,249,612 and other receivables included in prepayments and other current assets of RMB10,610,652 as of December 31, 2019, that were pledged to secured bank borrowings. The creditors of VIEs do not have recourse to the general credit of WFOE. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying consolidated financial statements contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group’s ability to operate profitably, to generate cash flows from operations, and its ability to attract investors and to borrow funds on reasonable economic terms. Reclassification of prior-year presentation Certain prior year amounts have been reclassified for consistency with the current period presentation. Reclassifications have been made to the Consolidated Balance Sheet as of December 31, 2019, including: 1) Presenting “Accounts receivable – a related party, net” totaling RMB 12.5 million as a separate balance sheet line item, which was previously reported in “Accounts receivables, net”; 2) Presenting “Accounts receivable - third parties, net” totaling RMB 206.6 million as a separate balance sheet line item, which was previously reported in “Accounts receivables, net”; 3) Presenting “Amounts due from related parties” totaling RMB 3.9 million as a separate balance sheet line item, which was previously reported in “Prepayments and other current assets”; 4) Presenting “Amounts due to a related party” totaling RMB 3.2 million as a separate balance sheet line item, which was previously reported in “Accounts payable”. These changes in classification and presentation do not affect previously reported financial position, results of operations, and cash flows for the year ended December 31, 2019. (b) Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE for which the WFOE is the primary beneficiary, and the VIE’s subsidiaries. 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, exercises effective control over the activities that most impact the economic performance, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All intercompany transactions and balances among the Company, its subsidiaries, the VIE, and the VIE’s subsidiaries have been eliminated upon consolidation. (c) Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, determining the selling price of products and services in multiple element revenue arrangements, the allowance for doubtful accounts receivable and contract assets, depreciable lives and recoverability of property and equipment and intangible assets, the realization of deferred income tax assets, the fair value of share based compensation awards, redeemable convertible preferred shares, available-for-sale debt securities, other equity investments and warrant liabilities, and the fair value of the ordinary shares to determine the existence of beneficial conversion feature of the redeemable convertible preferred shares. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Convenience Translation Translations of the consolidated financial statements from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00 = RMB6.5250, representing the noon buying rate in The City of New York for cable transfers of RMB as set forth in the H.10 weekly statistical release of Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. (e) Commitments and Contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. (f) Cash Cash consists of cash on hand and cash at bank. Cash at bank are deposited in financial institutions at below locations: December 31, 2019 2020 RMB RMB Cash on hand 118,613 719 Cash balances include deposits in: Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) 52,225,475 68,083,153 — Denominated in US$ 103,577,057 223,435,361 — Denominated in Hong Kong S.A.R. Dollar (“HKD”) 19,057 17,088 Total cash balances held at mainland PRC financial institutions 155,821,589 291,535,602 Financial institutions in Japan — Denominated in Japanese Yen 8,177,879 5,028,888 Total cash balances held at Japan financial institutions 8,177,879 5,028,888 Total cash balances held at financial institutions 163,999,468 296,564,490 Total cash balances 164,118,081 296,565,209 The bank deposits, including term deposits and restricted cash, with financial institutions in the mainland of the PRC and Japan are insured by the government authorities up to RMB500,000 and JPY10,000,000, respectively. The bank deposits including term deposits and restricted cash are insured by the government authorities with amounts up to RMB8,665,785 and RMB13,402,156 as of December 31, 2019 and 2020, respectively. The Company has not experienced any losses in uninsured bank deposits and does not believe that it is exposed to any significant risks on cash held in bank accounts. To limit exposure to credit risk, the Company primarily places bank deposits with large financial institutions in the PRC and Japan with acceptable credit rating. (g) Restricted cash Cash balances that have restrictions as to withdrawal or usage are considered restricted cash. Restricted cash that will be released to cash within the next 12 months is classified as current asset, while the balance restricted for use longer than one year is classified as non-current asset on the consolidated balance sheets. (h) Term deposits Term deposits represent deposits at banks with original maturities more than three months but less than one year. The Group’s term deposits were denominated in US$ and were deposited at financial institutions in the mainland of the PRC with the interest rate of 2.4% and 1% per annum as of December 31, 2019 and 2020, respectively. Term deposits maintained at financial institutions consist of the following: December 31, 2019 2020 RMB RMB US$ denominated bank deposits with financial institutions in the PRC 69,762,000 160,349,418 To limit exposure to credit risk relating to bank deposits, the Company primarily places term deposits only with large financial institutions in the PRC with acceptable credit rating. (i) Accounts Receivable Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Management considers the following factors when determining the collectability of specific accounts: historical experience, credit worthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. An allowance for doubtful accounts is made and recorded into general and administrative expenses based on aging of accounts receivable and on any specifically identified accounts receivable that may become uncollectible. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Group estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Group does not have any off-balance sheet credit exposure related to its customers. (j) Long-term Investments Debt securities The Group accounts for debt securities as available-for-sale (“AFS”) when they are not classified as either trading or held-to-maturity. AFS securities are recorded at fair value, with unrealized gains and losses, net of related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive loss until realized. Realized gains and losses from the sale of AFS securities are determined on a specific-identification basis. An impairment loss on the AFS securities are recognized in the consolidated statement of comprehensive loss when the decline in value is determined to be other-than-temporary. No impairment loss was recognized for the years ended December 31, 2018, 2019 and 2020. Equity method investments The Group applies the equity method to account for an equity interest in an investee over which the Group has significant influence but does not own a majority equity interest or otherwise control. Under the equity method of accounting, the Group’s share of the investee’s results of operations is reported as share of losses of equity method investments in the consolidated statements of comprehensive loss. The Group recognizes an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other than temporary. The process of assessing and determining whether impairment on an investment is other than temporary requires a significant amount of judgment. To determine whether an impairment is other than temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee. Other equity investments The Group measures investments in equity securities at cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. The Group considers information in periodic financial statements and other documentation provided by the investees to determine whether observable price changes have occurred. The Group makes a qualitative assessment considering impairment indicators to evaluate whether the equity investments without a readily determinable fair value is impaired at each reporting period, and written down to its fair value if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value. If an equity security without a readily determinable fair value is impaired, the Group includes an impairment loss in net income equal to the difference between the fair value of the investment and its carrying amount. (k) Property and Equipment, net Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. The estimated useful lives are as follows: Computer and office equipment 3 Furniture and fixtures 3 Motor vehicles 5 years Leasehold improvements The shorter of lease terms and estimated useful lives Software 5 Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred. (l) Intangible Assets, net Intangible assets represent telecommunication business operation licenses and software copyrights that acquired through assets acquisition, which are initially recognized and measured at cost, and amortized on a straight-line basis over their respective estimated useful lives, which range from 3 (m) Impairment of Long-lived Assets Long-lived assets such as property and equipment and intangible assets with finite lives are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment of long-lived assets was recognized for the years ended December 31, 2018, 2019 and 2020. (n) Value Added Taxes The Company’s PRC subsidiaries are subject to value added tax (“VAT”). Revenue from providing cloud communication services and communication devices sales are generally subject to VAT at the rate of 6% and 13% since April 1, 2019, or 6% to 16% between May 1, 2018 and April 1, 2019, and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other current liabilities, and the excess of input VAT over output VAT is reflected in prepayments and other current assets in the consolidated balance sheets. (o) Short-term Investments The Group’s short-term investments represent the Group’s investments in financial products managed by financial institutions in the PRC which are redeemable at the option of the Group on any working day. Short-term investments are reported at fair value, with unrealized holding gains or losses, net of any related income tax effect, excluded from earnings and recorded as a separate component of accumulated other comprehensive loss until realized. Realized gains or losses from the sale of short-term investments are determined on a specific identification basis and are recorded as investment income when earned. (p) Warrant Liabilities The freestanding warrants to purchase redeemable convertible preferred shares at a future date were determined to be freestanding instruments that were accounted for as liabilities. At initial recognition, the Group recorded the warrant liabilities on the consolidated balance sheets at their estimated fair value and changes in estimated fair values were included in the change in fair value of warrant liabilities on the consolidated statement of comprehensive loss or allocated to the proceeds from the issuance of the debt instrument to the warrants based on the warrant liabilities fair value. The warrant liabilities are subject to remeasurement at each reporting period and the Group adjusted the carrying value of the warrant liabilities to fair value at the end of each reporting period utilizing the binominal option pricing model, with changes in estimated fair value included in the change in fair value of warrant liabilities on the consolidated statement of comprehensive loss. (q) Fair Value Measurements Fair value represents 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Accounting guidance establishes a three-level fair value hierarchy and 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 are: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash, restricted cash, term deposits, short-term investments, accounts receivable - third parties, net, accounts receivable – a related party, net, other receivables included in prepayments and other current assets, available-for-sale debt securities, other equity investments, equity method investment, amounts due from related parties, short-term borrowings and long-term borrowings, accounts payable, contract liabilities, other payables included in accrued expenses and other current liabilities and warrant liabilities. The Group measures short-term investments at fair value on a recurring basis. Short-term investments include financial products issued by financial institutions, which are valued based on prices per units quoted by issuers and are categorized in Level 2 of the fair value hierarchy. Available-for-sale debt securities, other equity investments and warrant liabilities were measured at fair value using unobservable inputs and categorized in Level 3 of the fair value hierarchy. As of December 31, 2019 and 2020, the carrying values of other financial instruments approximated to their fair values due to the short-term maturity of these instruments. The Group’s non-financial assets, such as intangible assets and property and equipment, would be measured at fair value only if they were determined to be impaired. (r) Revenue recognition The Company generate substantially all of the Company’s revenues from the following services and products: (1) (2) (3) The Company recognizes revenue upon the transfer of control of promised products or services provided to the Company’s customers, in the amount of consideration the Company expect to receive for those products or services (excluding sales taxes collected on behalf of government authorities). The Company’s revenue contracts generally do not include a right of return in relation to the delivered products or services. The timing of revenue recognition may differ from the timing of invoicing to the Company’s customers. The Company record a contract asset when revenue is recognized prior to invoicing, and a contract liability when payment is received from a customer in advance of revenue recognition. The Company generally issue invoices based on contract terms, which may be when the services are completed, upon customer acceptance of the Company’s deliverables or at preset milestones. Payments are due with standard payment terms which are generally not more than 90 days from invoice issuance. CPaaS revenues The Company accounts for revenue from customers’ usage of text message and voice call services on the Company’s CPaaS platform as two separate performance obligations. The Company’s service fees are determined by applying the contractual unit price to the monthly usage volume of text messages sent or minutes of voice calls placed and a contractual monthly fixed charge per subscriber multiplied by the number of subscribers recorded by the Company’s CPaaS platform where relevant. The cloud-based services to send text messages and place voice calls are sold separately to customers with observable standalone selling prices. The service contracts are generally with a length between 3 Cloud-based CC revenues Customers subscribe to the Company’s basic Cloud-based CC services at a fixed monthly fee and pay for other value-added services on a usage basis. The Company recognizes the monthly service fees ratably over the contract period during which the Company is obligated to grant customers continuous access to those basic Cloud-based CC services. Revenue for other value-added services on top of the basic subscription is determined by applying the contractual unit price to the monthly usage volume and recognized when the related services are provided to customers. The basic subscription is sold to customers at the same price with or without the value-added services, so the transaction price is allocated on the basis of observable stand-alone selling prices. The service contracts are generally with a length between 3 Cloud-based UC&C revenues The Company offers customized Cloud-based UC&C solutions to customers with tailored functionalities and interfacing capabilities suitable to their complicated IT environment. The Company has identified that the nature of our overall promise to customers as the provision of an appropriately customized and interfaced software solution comprising the customized UC&C license and other highly interdependent and interrelated services, and have accounted for the promise as one combined performance obligation. The Company applies an iterative process to design, test and implement the software in customers’ IT environment and recognizes revenue for this performance obligation over a period of time during which the control of the customized UC&C solution is progressively transferred to the customers. The Company uses an input method to estimate progress, based on the proportion of the labour hours incurred relative to the estimated total labour hours. The Company’s Cloud-based UC&C contracts generally include a standard assurance-type warranty. (s) Cost of Revenues Cost of revenues mainly consists of payroll and related costs for employees, communication service expense associated with the use of facilities and equipment by these employees, such as rental and depreciation expenses, communication service expense charges to telecom operators or its distributors and cloud service fees to cloud service providers. (t) Research and Development Expenses Research and development expenses mainly consist of payroll and related costs for employees involved in researching and developing new technologies, in the field of cloud communication, and outsourced design expenses as well as expenses associated with the use by these functions of facilities and equipment, such as rental and depreciation expenses. Research and development expenses are expensed as incurred. (u) Selling and Marketing Expenses Selling and marketing expenses mainly consist of advertising expenses, promotion expenses, payroll and related expenses for personnel engaged in selling and marketing activities and expenses associated with the use by these functions of facilities and equipment, such as rental and depreciation expenses. Advertising expenses are expensed when incurred and are included in selling expenses in the consolidated statements of comprehensive loss. For the years ended December 31, 2018, 2019 and 2020, the advertising expenses were RMB12,013,725, RMB15,842,771 and RMB27,253,585, respectively. (v) General and Administrative Expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, expenses associated with the use of facilities and equipment by these employees, such as rental and depreciation expenses, professional fees and other general corporate expenses. (w) Share-based Compensation Share-based awards granted to the founders in the form of restricted shares are measured at the grant date fair value of the awards, and are recognized as compensation expense using the graded-vesting method. The Group elects to recognize the effect of forfeitures in compensation cost when they occur. Share-based awards granted to employees are measured at the grant date fair value of the awards, and are recognized as compensation expense with graded-vesting schedules over the requisite service period for each separately vesting portion (or tranche) of the award. The Group elects to recognize the effect of forfeitures in compensation cost when they occur. To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards is reversed. Share-based compensation in relation to the restricted ordinary shares is measured based on the fair value of the Company’s ordinary shares at the grant date of the award, which is estimated using the income approach and equity allocation method. Estimation of the fair value of the Company’s ordinary shares involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, discount rate, risk-free interest rate and subjective judgments regarding the Company’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. Share-based compensation in relation to the share options is estimated using the binominal option pricing model. The determination of the fair value of share options is affected by the fair value of the Company’s ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple and expected dividend yield. The fair value of these awards was determined by management with the assistance from a valuation report prepared by an independent valuation firm using management’s estimates and assumptions. A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Company calculates incremental compensation cost of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Company recognizes incremental compensation cost in the period the modification occurs. For awards not being fully vested, the Company recognizes the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original awards over the remaining requisite service period after modification. (x) Employee Benefits The Company’s subsidiaries and the VIE and VIE’s subsidiaries in the PRC participate in a government mandated, multi-employers, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included as expenses in the accompanying consolidated statements of comprehensive loss amounted to RMB60,765,557, RMB66,161,467 and RMB43,023,105 for the years ended December 31, 2018, 2019 and 2020, respectively. (y) Income Taxes Current income taxes are provided on the basis of income before income taxes for financial reporting purposes, and adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income tax assets and liabilities are recognized for the tax effects of temporary differences and are determined by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse to the temporary differences between the financial statements’ carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred income tax assets will not be realized. The effect on deferred income taxes arising from a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. The Group applies a “more likely than not” recognition threshold in the evaluation of uncertain tax positions. The Group recognizes the benefit of a tax position in its consolidated financial statements if the tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits, and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. Adjustments, if required, are recorded in the Group’s consolidated financial statements in the period in which the change that necessities the adjustments occur. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in certain circumstances, a tax appeal or litigation process. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expenses and general and administrative expenses, respectively. As of December 31, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. (z) Operating Leases The Group leases premises for offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis commencing with the beginning of the lease term. (aa) Foreign Currency Translation and Foreign Currency Risks The Company’s reporting currency is RMB. The functional currency of the Company and its subsidiary incorporated at Hong Kong S.A.R. is the US$. The functional currency of the Company’s subsidiary incorporated at Japan is JPY. The functional currency of the Company’s PRC subsidiary, the VIE and th |
CASH AND RESTRICTED CASH
CASH AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2020 | |
CASH AND RESTRICTED CASH | |
CASH AND RESTRICTED CASH | 3. CASH AND RESTRICTED CASH A reconciliation of cash and restricted cash in the consolidated balance sheets to the amounts in the consolidated statement of cash flows is as follows: December 31, 2019 2020 RMB RMB Cash 164,118,081 296,565,209 Restricted cash 195,000 1,893,454 Total cash and restricted cash shown in the consolidated statements of cash flows 164,313,081 298,458,663 The balances of restricted cash were mainly related to bank deposits for performance guarantee, which were restricted for use as of December 31, 2019 and 2020, and will be released from restriction within the next 12 months. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
SHORT TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS December 31, 2019 2020 RMB RMB Aggregate cost basis 2,500,000 — Gross unrealized holding gain 1,024 — Aggregate fair value 2,501,024 — The Group’s short-term investments represent wealth management products issued by commercial banks in the PRC which are redeemable on demand of the Group. The wealth management products are invested in debt securities issued by the PRC government, corporate debt securities, bank deposits, central bank bills and other securities issued by other financial institutions. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: December 31, 2019 2020 RMB RMB Accounts receivable - third parties 228,332,843 266,496,793 Allowance for doubtful accounts - third parties (21,703,425) (37,604,131) Accounts receivable - third parties, net 206,629,418 228,892,662 Accounts receivable - a related party 13,159,981 9,944,366 Allowance for doubtful accounts - a related party (657,999) (497,218) Accounts receivable - a related party, net 12,501,982 9,447,148 The movement of the allowance for doubtful accounts including both accounts receivable due from third parties and a related party is as follows: Year ended December 31, Allowance for doubtful accounts - third parties 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year 19,048,819 18,218,164 21,703,425 Additions charged to (reversal of) bad debt expense (830,655) 8,071,880 15,900,706 Write‑off — (4,586,619) — Balance at the end of the year 18,218,164 21,703,425 37,604,131 Year ended December 31, Allowance for doubtful accounts - a related party 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year — 1,033,769 657,999 Additions charged to (reversal of) bad debt expense 1,033,769 (375,770) (160,781) Balance at the end of the year 1,033,769 657,999 497,218 As of December 31, 2019, accounts receivable – third parties, net includes accounts receivable that were pledged for bank borrowings (see Note 10). |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 6. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets as of December 31, 2019 and 2020 consisted of the following: December 31, 2019 2020 RMB RMB Advance to suppliers 78,609,793 108,082,414 Deposits 6,378,261 10,405,023 Staff advances 13,776,145 6,295,894 Deductible input VAT 12,056,458 11,692,900 Receivables from third party payment platforms 2,418,033 2,295,382 Others 536,959 485,626 Prepayments and Other Current Assets 113,775,649 139,257,239 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
LONG TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 7. LONG-TERM INVESTMENTS December 31, 2019 2020 RMB RMB Available ‑ for ‑ sale debt securities Beijing Chenfeng Network Technology Co., Ltd. 2,500,000 11,800,000 Total available ‑ for ‑ sale debt securities 2,500,000 11,800,000 Equity method investments Beijing Lianxinzhihui Technology Co., Ltd. 3,788,867 3,751,676 Shenzhen City Yunjitong Technology Co., Ltd. 7,383,678 7,383,678 Beijing Jingu Shitong Technology Co., Ltd — 14,210,508 Shenyang Yunrongxin Technology Co., Ltd 2,000,000 2,000,000 Total equity method investments 13,172,545 27,345,862 Less: impairment of equity method investments (9,383,678) (9,383,678) Total equity method investments, net 3,788,867 17,962,184 Other equity investments Shanghai Yuhuan Information System Co., Ltd. 25,600,000 25,600,000 Beijing Hujingtiaoyue Technology Co., Ltd. 5,000,000 5,000,000 Hangzhou Paileyun Technology Co., Ltd. 3,188,340 5,800,000 Sichuan Taojinniwo Information Technology Co., Ltd. 6,657,838 6,657,838 Beijing Hanyuhaikuo Software Technology Co., Ltd. 5,000,000 5,000,000 Total other equity investments 45,446,178 48,057,838 Less: impairment of other equity investments (11,657,838) (11,657,838) Total other equity investments, net 33,788,340 36,400,000 Total long ‑ term investments 40,077,207 66,162,184 Available-for-sale debt securities On September 2, 2019, Ronglian Yitong entered into a shares purchase agreement to acquire 10% equity interest of Beijing Chenfeng Network Technology Co., Ltd. (“Beijing Chenfeng”), which is principally engaged in provision of customer relationship management solutions, at a cash consideration of RMB2,500,000. The investment was classified as AFS debt security because the investment contains substantive liquidation preference and redemption provision and is redeemable at the option of the investor. As of December 31, 2019 and 2020, the fair value of the entire invested capital of Beijing Chenfeng was estimated using an income approach, and the fair value of the debt security is estimated based upon the probability-weighted present value of expected future investment returns, considering each of the possible future outcomes available to the enterprise, as well as the rights of each equity classes. This method involves a forward-looking analysis of the potential future outcomes available to the enterprise, the estimation of future and present value under each outcome, and the application of a probability factor to each outcome as of the valuation date. The significant inputs for the valuation model include, but not limited to, future cash flows, discount rate, and the selection of comparable companies operating in similar businesses. There was no fair value change based on the fair value of the entire invested capital of Beijing Chenfeng using an income approach and the equity allocation method for the year ended December 31, 2019 or as of December 31, 2019 considering the investment date was September 2, 2019, which is a short period between investment date and December 31, 2019. Unrealized gain of RMB9,300,000, net of nil income taxes were recorded in other comprehensive income for the year ended December 31, 2020. Equity method investments In September 2017, Ronglian Yitong acquired 16% equity interest of Beijing Lianxinzhihui Technology Co., Ltd., which is principally engaged in provision of big data solutions in the area of fraud prevention and precision marketing, at a cash consideration of RMB4.5 million. Ronglian Yitong has the right to appoint one out of three directors. The investments are accounted for under the equity method as Ronglian Yitong is able to exercise significant influence through its board representation. The Company recognized its share of loss of this equity investment of RMB546,530, RMB14,592 and RMB37,191 for the years ended December 31, 2018, 2019 and 2020, respectively. On March 23, 2020, a new third-party investor acquired 7.69% of the equity interest of one subsidiary, Beijing Jingu Shitong Technology Co., Ltd. (“Jingu”), which led to the reduction of the Group’s ownership from 60% to 55.38%. Accordingly, the article of association of Jingu was updated that all the matters should be voted and agreed by shareholders with at least 2/3 2/3 Upon the deconsolidation of Jingu, the Group recorded a gain from disposal of a subsidiary amounting to RMB14,897,034, of which approximately RMB13,871,309 was the remeasurement of the retained non-controlling investment in Jingu to fair value. The Group uses the equity method to account for its retained interest in Jingu as it had the ability to exercise significant influence over the entity and reports its share of losses of equity method investments in Jingu on the consolidated statements of comprehensive loss. For the year ended December 31, 2020, the Group’s share of loss of Jingu was approximately RMB2,409,030. Management evaluated whether there was other than temporary impairment based on the facts, including recent financing activities, projected and historical financial performance. The Company performed an impairment analysis and recognized an other than temporary loss for the investments of Shenzhen City Yunjitong Technology Co., Ltd and Shenyang Yunrongxin Technology Co., Ltd of RMB9.4 million prior to January 1, 2018. Other equity investments In August 2019, Ronglian Yitong entered into a shares purchase agreement to acquire 3% equity interest of Hangzhou Paileyun Technology Co., Ltd. (“Hangzhou Paileyun”), which is principally engaged in provision of real-time voice and video cloud communication services, at a cash consideration of RMB3,188,340. According to the shares purchase agreement, Ronglian Yitong does not have the right to appoint any directors. The Group accounts for its investment in Hangzhou Paileyun as other equity investments since its investment is not in-substance common stock due to the liquidation preference feature, and does not have readily determinable fair value. The Group elected to measure other equity investments without a readily determinable fair value at cost adjusted for changes resulting from impairments, if any, and observable price changes in orderly transactions for the identical or similar securities of the same issuer. The Group did not identify any observable price changes requiring an adjustment to the investments in Hangzhou Paileyun during the year ended December 31, 2019. In August 2020, Hangzhou Paileyun entered into new financing agreements with new investors. After Hangzhou Paileyun’s new financing, Ronglian Yitong’s equity interest remained at 3% as Ronglian Huitong made an additional investment of RMB457,326 in Hangzhou Paileyun pursuant to a capital increase agreement. In December 2020, Hangzhou Paileyun entered into another financing agreement with certain other new investors, which diluted Ronglian Yitong’s equity interest in Hanzhou Paileyun from 3% to 2.88%. The new financing from third parties provided an observable price for Ronglian Yitong’s investment in Hangzhou Paileyun and Ronglian Yitong evaluated the investment’s carrying amount based on the observable price and recognized a gain of RMB2,154,334 from the change in fair value during the year ended December 31, 2020. The new financing agreement with new investors provided the observable price for other equity investment and the fair value adjustment was determined primarily based on the market approach as of the transaction date, which takes into consideration a number of factors including recent financing pricing which shall be adjusted as similar securities to reflect difference in the rights and obligations between the equity security that was transacted and the equity security held by the Company, and discount rates from traded companies in the industry and requires the Company to make certain assumptions and estimates regarding industry factors. Specifically, some of the significant unobservable inputs included discount of lack of marketability. The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair values. In September 2017, Ronglian Yitong entered into a share purchase agreement to acquire 6.56% equity interest of Beijing Hujingtiaoyue Technology Co., Ltd. (“Hujingtiaoyue”), which is principally engaged in provision of artificial intelligence marketing solutions, at a cash consideration of RMB4 million. According to the shares purchase agreement, Ronglian Yitong, together with another shareholder, has the right to appoint one director. The Group accounts for its investment in Hujingtiaoyue as other equity investments since its investment is not in-substance common stock due to the liquidation preference feature, and does not have readily determinable fair value. The Group elected to measure other equity investments without a readily determinable fair value at cost adjusted for changes resulting from impairments, if any, and observable price changes in orderly transactions for the identical or similar securities of the same issuer. In June 2018, Hujingtiaoyue entered into new financing agreements with new investors. After Hujingtiaoyue’s new financing, Ronglian Yitong’s equity interest in Hujingtiaoyue decreased to 5.45% and Ronglian Yitong, together with another shareholder, remains the right to appoint one director. The new financing provided an observable price for Ronglian Yitong’s investment in Hujingtiaoyue and Ronglian Yitong evaluated the investments carrying amount based on the observable price and recognized a gain of RMB100,000 from the change in fair value. In May 2019, Hujingtiaoyue entered into new financing agreements with new investors. After Hujingtiaoyue’s new financing, Ronglian Yitong’s equity interest in Hujingtiaoyue further decreased to 4.29% and Ronglian Yitong, together with another shareholder, remains the right to appoint one director. The new financing provided an observable price for Ronglian Yitong’s investments in Hujingtiaoyue and Ronglian Yitong evaluated this investment’s carrying amount based on the observable price, and recognized a gain of RMB900,000 from the change in fair value. The Company did not identify any observable price changes requiring adjustments or other-than-temporary impairment loss to the investments except for Hujingtiaoyue for the year ended December 31, 2019 and Hangzhou Paileyun for the year ended December 31, 2020. Management evaluated whether there was other than temporary impairment based on the facts, including recent financing activities, which shall be adjusted as similar securities to reflect difference in the rights and obligations between the equity security that was transacted and the equity security held by the Company, and projected and historical financial performance. The Company performed an impairment analysis and recognized an other than temporary loss for the investments of Sichuan Taojinniwo Information Technology Co., Ltd. and Beijing Hanyuhaikuo Software Technology Co., Ltd. of RMB11.7 million prior to January 1, 2018. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment as of December 31, 2019 and 2020 consisted of the following: December 31, 2019 2020 RMB RMB Computer and office equipment 23,913,290 26,162,529 Furniture and fixtures 1,540,476 2,511,918 Motor vehicles 653,303 263,196 Leasehold improvement 369,247 566,507 Software 10,627,169 12,872,664 Property and Equipment 37,103,485 42,376,814 Less: Accumulated depreciation (19,199,417) (25,960,658) Property and Equipment, net 17,904,068 16,416,156 Depreciation expenses were RMB5,574,439, RMB6,152,479 and RMB6,877,787 for the years ended December 31, 2018, 2019 and 2020, respectively. Depreciation expenses on property and equipment were allocated to the following expense items: Year ended December 31, 2018 2019 2020 RMB RMB RMB Cost of revenues 818,112 1,310,170 1,641,973 Research and development expenses 777,841 1,304,893 1,160,673 Selling and marketing expenses 1,985,829 2,335,885 2,119,406 General and administrative expenses 1,992,657 1,201,531 1,955,735 Total depreciation expenses 5,574,439 6,152,479 6,877,787 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET The following table summarizes the Company’s intangible assets, as of December 31, 2019 and 2020. December 31, 2019 Weighted Gross Net average carrying Accumulated carrying amortization amount amortization amount Period RMB RMB RMB Years Software copyrights 4,302,000 (3,264,250) 1,037,750 6.8 Telecommunication business operation licenses 5,744,940 (3,339,512) 2,405,428 4.0 Total 10,046,940 (6,603,762) 3,443,178 December 31, 2020 Weighted Gross Net average carrying Accumulated carrying amortization amount amortization amount period RMB RMB RMB Years Software copyrights 2,372,000 (1,630,750) 741,250 8.0 Telecommunication business operation licenses 5,906,192 (4,624,859) 1,281,333 4.0 Total 8,278,192 (6,255,609) 2,022,583 Amortization expenses for intangible assets recognized as general and administrative expenses were RMB2,103,717, RMB2,139,519 and RMB1,720,270 for the years ended December 31, 2018, 2019 and 2020, respectively. The estimated amortization expense for the next five years is as follows: RMB 2021 1,039,747 2022 645,792 2023 288,422 2024 45,069 2025 3,553 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
BORROWINGS | |
BORROWINGS | 10. BORROWINGS December 31, 2019 2020 RMB RMB Secured bank loans 26,838,032 — Unsecured bank loans — 20,000,000 Short ‑ term borrowings 26,838,032 20,000,000 Longs-term borrowings 96,190,363 — Secured bank loans During the years ended December 31, 2018, 2019 and 2020, Ronglian Yitong obtained short-term borrowings with amounts of RMB33,731,653, RMB19,941,451 and nil, respectively, from Silicon Valley Bank (“SPD”) and repaid SPD with amounts of RMB27,502,356, RMB12,988,851 and RMB26,838,032, respectively. As of December 31, 2019, the Company’s secured bank borrowings bear a weighted average interest rate of 7.51% per annum. The short-term bank borrowings were pledged by accounts receivable - third parties of Ronglian Yitong and were jointly guaranteed by the Company, Beijing Ronglian 7Moor Technology Co., Ltd. (“Ronglian 7Moor”), and Beijing Ronglian Guanghui Technology Co., Ltd. (“Ronglian Guanghui”), subsidiaries of the Company. As of December 31, 2019, accounts receivable - third parties of Ronglian Yitong with amounts of RMB168,249,612 and other receivables included in prepayments and other current assets of RMB10,610,652 were pledged to secure bank borrowings from SPD. Upon the secured bank loans matured on December 18, 2020, the accounts receivable and other receivables of Ronglian Yitong Technology were released from the pledge. Unsecured bank loans During the year ended December 31, 2020, Ronglian Yitong obtained short-term borrowings with amounts of RMB20,000,000 from Bank of Beijing (“BOB”). As of December 31, 2020, the Company’s unsecured bank borrowings bear a weighted average interest rate of 3.85% per annum. The unsecured bank loans mature at various times within one year and contain no renewal terms. Long-term borrowings On September 25, 2019, the Company borrowed two unsecured loans in total of US$15 million (equivalent to RMB106.1 million) with detachable warrants from two PRC onshore investment funds. The warrants entitled the PRC onshore investment funds to purchase 6,112,570 Series E Redeemable Convertible Preferred Shares (see Note 12). At initial recognition, the Company recorded the warrants as liabilities at their estimated fair value in the amount of US$2.1 million (equivalent to RMB14.8 million) and the remaining proceeds of US$12.9 million (equivalent to RMB91.2 million) were allocated to the non-current interest free loan. The difference between US$12.9 million (equivalent to RMB91.2 million) allocated to the non-current interest free loan and the US$15 million (equivalent to RMB106.1 million), the repayment amount, is accreted as interest expense over the 16.5 months term of the loans using an effective interest rate of 11.59%. The Company repaid such unsecured loans on December 30, 2020. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2019 2020 RMB RMB Accrued payroll and social insurance 45,688,185 51,919,137 Taxes payable 17,011,290 29,028,359 Accrued issuance costs for Series F financing — 5,548,788 Deposits 2,235,945 1,144,769 Staff reimbursements 1,841,772 2,437,562 Other payables 1,991,306 3,888,841 Accrued expenses and other current liabilities 68,768,498 93,967,456 |
WARRANT LIABILITIES
WARRANT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
WARRANT LIABILITIES | |
WARRANT LIABILITIES | 12. WARRANT LIABILITIES The Company classified the warrants to purchase redeemable convertible preferred shares as warrant liabilities and adjusted the carrying value of the warrant liabilities to fair value at the end of each reporting period utilizing the binomial option pricing model, which involves significant assumptions including the risk-free interest rate, the expected volatility, expected dividend yield and expected term. The risk-free interest rate was based on the U.S. Treasury rate for the expected remaining life of preferred shares warrants. The expected volatility was estimated based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s warrant liabilities. Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future. Expected term is the remaining life of the warrant liabilities. Series C Warrant In February 2016, Ronglian Yitong entered into a two The fair value of the warrant liability to China Equities HK Limited for purchasing Series C Redeemable Convertible Preferred Shares as of December 31, 2019 and 2020 are estimated with the following assumptions used: December 31, 2019 2020 Risk‑free rate of return 2.60% 1.15% Volatility 45% 45% Expected dividend yield 0% 0% Fair value of underlying Series C Redeemable Convertible Preferred Shares US$1.97 US$5.42 Expected term 3.7 years 2.7 years Series E Warrant During the Company’s Series E financing in September 2019, two PRC onshore investment funds would also like to invest in the Series E Redeemable Convertible Preferred Shares. However, these two PRC onshore investment funds were required to obtain ODI approvals from relevant PRC government authorities and complete foreign currency exchange procedures before conducting an outbound direct investment pursuant to the PRC laws. To facilitate these two PRC onshore investment funds to invest in the Series E Redeemable Convertible Preferred Shares with the same preference and rights as other three offshore investment funds, a series of agreements were entered into by the Company and Ronglian Yitong. On September 25, 2019, Ronglian Yitong entered into loan agreements with the two PRC onshore investment funds to borrow two loans in the amount of US$9.0 million and US$6.0 million, respectively (equivalent to RMB106,092,000 in total). The Company also entered into warrant purchase agreements with the two PRC onshore investment funds, which entitle the PRC onshore investment funds to purchase 6,112,570 Series E Redeemable Convertible Preferred Shares at Series E’s issuance price of US$2.45 per share. Such preferred shares shall be issuable upon the exercise of the warrants once the two investors obtain the government approval and complete the exchange procedures for ODI. The warrants are exercisable through February 28, 2021. If the government approval is not obtained before the due date of the loans, the warrants are lapsed. At initial recognition, the Group allocated the proceeds from the issuance of the debt instrument to the warrants based on the warrant liabilities’ fair value. The warrant liabilities are subject to remeasurement at each reporting period. On March 25, 2020 and July 15, 2020, the Company issued 3,706,745 and 3,501,087 ordinary shares, in connection with the purchase of non-controlling interests of the Group’s subsidiaries. Pursuant to the anti-dilution provision in the Series E financing arrangement, the two PRC onshore investment funds were entitled to additional 123,677 and 190,597 warrants to purchase Series E Redeemable Convertible Preferred Shares, respectively. On November 3, 2020, the warrants in connection with Series E financing were exercised and the Company issued 6,426,844 Series E Redeemable Convertible Preferred Shares to the offshore affiliates of the two PRC onshore investment funds (the “Offshore Affiliates”) in exchange for two promissory notes in the aggregate amount of US$15 million. Therefore, the preferred shares issued in connection with the exercise of Series E warrants was recorded in mezzanine equity in an amount of RMB122,642,269. The fair value of the warrant to purchase 6,112,570 Series E Redeemable Convertible Preferred Shares is US$2,100,000 (equivalent to RMB14,852,880) at the issuance date and US$2,000,000 (equivalent to RMB13,952,400) as of December 31, 2019.The fair value of additional warrants issued to purchase the additional 123,677 and 190,597 Series E Redeemable Convertible Preferred Shares is US$73,268 (equivalent to RMB515,611) at issuance date and total fair value of the warrant to purchase 6,426,844 Series E Redeemable Convertible Preferred Shares at the exercise date of Series E warrants is US$2,471,709 (equivalent to RMB 16,549,825). The fair value of the warrant liability issued to two PRC onshore investment funds for purchasing Series E Redeemable Convertible Preferred Shares as of December 31, 2019 are estimated with the following assumptions used: December 31, 2019 Risk‑free rate of return 2.58% Volatility 55% Expected dividend yield 0% Fair value of underlying Series E Redeemable Convertible Preferred Shares US$2.49 Expected term 1.2 years Series F Warrant On November 13, 2020, the Company agreed to issue a warrant to Novo Investment HK Limited (“Novo Investment”) with the exercise price of US$34,000,000. Novo Investment may, within six months commencing from the issuance date, subscribe for an aggregate of 11,799,685 Series F Redeemable Convertible Preferred Shares of the Company, par value of US$0.0001 per share, at the exercise price of US$2.8814 per share, subject to adjustment. On January 7, 2021, the Series F warrant was fully exercised with the exercise price of US$34,000,000 and the Company issued 11,799,685 Series F Redeemable Convertible Preferred Shares to Novo Investment (Note 21(c)). At initial recognition, the Group recorded the warrant liabilities on the consolidated balance sheet at its estimated fair value and subsequently, at each reporting date, recorded changes in estimated fair value included in the change in fair value of warrant liabilities on the consolidated statement of comprehensive loss. The fair value of the warrant to purchase 11,799,685 Series F Redeemable Convertible Preferred Shares is US$4,800,000 (equivalent to RMB31,816,800) at the issuance date and US$31,000,000 (RMB202,271,900) as of December 31, 2020. The fair value of the warrant liability issued to Novo Investment for purchasing Series F Redeemable Convertible Preferred Shares as of December 31, 2020 are estimated with the following assumptions used: December 31, 2020 Risk‑free rate of return 1.07% Volatility 30% Expected dividend yield 0% Fair value of underlying Series F Redeemable Convertible Preferred Shares US$5.50 Expected term 0.36 years |
REDEEMABLE CONVERTIBLE PREFERRE
REDEEMABLE CONVERTIBLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2020 | |
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |
REDEEMABLE CONVERTIBLE PREFERRED SHARES | 13. REDEEMABLE CONVERTIBLE PREFERRED SHARES On July 30, 2014, the Company issued 18,642,038 Series A Redeemable Convertible Preferred Shares (“Series A Preferred Shares”) at US$0.1475 per share with total consideration of US$2,750,000 (equivalent to RMB16,902,050). On February 6, 2015, the Company issued 19,617,225 Series B Redeemable Convertible Preferred Shares (“Series B Preferred Shares”) at US$0.52 per share with total consideration of US$10,200,000 (equivalent to RMB62,691,240). On June 10, 2016, the Company issued 18,608,315 Series C Redeemable Convertible Preferred Shares (“Series C Preferred Shares”) to investors at US$1.34 per share with total consideration of US$25,000,000 (equivalent to RMB165,466,000). Also on June 10, 2016, Max Connect Limited (“Max Connect”), incorporated in the Cayman Islands, purchased 26,051,641 Series C Redeemable Convertible Preferred Shares at nominal consideration. On the same day, Beijing Hongshan Shengde Equity Investment Center (Limited Partnership) (“Hongshan Shengde”), registered in the People’s Republic of China and is an affiliate of Max Connect, and Ronglian Yitong and its nominee shareholders entered into a capital increase agreement, pursuant to which, Hongshan Shengde invested into Ronglian Yitong with cash of RMB230,086,500 (equivalent to US$35,000,000). On November 3, 2020, the Company, Max Connect and Hongshan Shengde agreed to change certain investment arrangements relating to Max Connect’s investment in Series C Redeemable Convertible Preferred Shares and Hongshan Shengde’s investment in Ronglian Yitong, pursuant to which, (1) Max Honest Ltd. (“Max Honest”), incorporated in the Cayman Islands and is an affiliate of Max Connect and Hongshan Shengde, would be designated as the new holder of 26,051,641 Series C Redeemable Convertible Preferred Shares which was previously held by Max Connect, and (2) the capital increase arrangement with Ronglian Yitong would be terminated. On the same day, the holder of Series C Redeemable Convertible Preferred Shares was re-designated: Max Connect surrendered 26,051,641 Series C Redeemable Convertible Preferred Shares for nominal consideration, and the Company approved the issue of 26,051,641 Series C Redeemable Convertible Preferred Shares to Max Honest for a consideration of US$35,000,000, which would be paid via a promissory note. To facilitate the repayment of the promissory note issued by Max Honest, the Company intends for Ronglian Yitong to pay to Hongshan Shengde the cash consideration that Max Honest have promised for its Series C Redeemable Convertible Preferred Shares and Max Honest will return such cash consideration to the Company. The net impact of those transactions will be to transfer a certain amount of cash from the Company’s subsidiary to the Company, with no net impact on cash. On November 3, 2020, the subscription receivable of US$35,000,000 from Max Honest was recorded as a reduction of mezzanine equity, and the payable by Ronglian Yitong to Hongshan Shengde with an amount of RMB230,086,500 was recorded in liabilities. On March 19, 2018, the Company issued 12,462,157 Series D Redeemable Convertible Preferred Shares (“Series D Preferred Shares”) at US$2.05 per share with total consideration of US$25,600,000 (equivalent to RMB160,975,360). On August 28, 2019, the Company issued 13,040,152 Series E Redeemable Convertible Preferred Shares (“Series E Preferred Shares”) at US$2.45 per share with total consideration of US$32,000,000 (equivalent to RMB226,646,200). The issuance costs were US$1,765,769 (equivalent to RMB12,427,087). On March 25, 2020 and July 15, 2020, the Company issued 3,706,745 and 3,501,087 ordinary shares, in connection with the purchase of non-controlling interests of the Group’s subsidiaries. Pursuant to the anti-dilution provision in the Series E financing arrangement, the Company issued 263,843 and 406,605 additional Series E Preferred shares at par value to existing Series E Preferred Shareholders on March 25, 2020 and July 15, 2020, respectively. The newly issued preferred shares were deemed as dividends to the existing Series E Preferred Shares. On November 13, 2020, the Company issued 31,581,509 Series F Redeemable Convertible Preferred Shares (“Series F Preferred Shares”) at US$2.88 per share with total consideration of US$91,000,000 (equivalent to RMB598,661,700). The issuance costs were US$1,807,278 (equivalent to RMB11,830,318). In February 2021, the Company completed its IPO on the New York stock exchange and issued 23,000,000 ADSs for a net proceeds of US$342.2 million (equivalent to RMB2.2 billion) at an issuance price of US$16 per ADS. Each ADS represents two ordinary shares. The issued and outstanding 158,900,014 redeemable convertible preferred shares were converted to Class A ordinary shares on a one-for-one-basis at the same time in the amount of US$1.27 billion (equivalent to RMB8.20 billion) (Note 21(e)), which includes accretion from January 1, 2021 to February 9, 2021, the date of the Company’s initial public offering. The Company’s redeemable convertible preferred shares activities consist of the following: RMB Series A Series B Series C Series D Series E Series F Total Balance as of January 1, 2018 128,754,021 153,434,897 473,035,494 — — — 755,224,412 Issuance for cash — — — 160,975,360 — — 160,975,360 Issuance costs paid — — — (1,793,926) — — (1,793,926) Modifications — — 4,654,516 — — — 4,654,516 Accretion of Redeemable Convertible Preferred Shares 21,341,595 22,457,999 45,290,526 13,122,517 — — 102,212,637 Foreign currency translation adjustment 7,275,547 8,559,710 25,672,740 15,143,355 — — 56,651,352 Balance as of December 31, 2018 157,371,163 184,452,606 548,653,276 187,447,306 — — 1,077,924,351 Issuance for cash — — — — 226,646,200 — 226,646,200 Issuance costs — — — — (12,427,087) — (12,427,087) Inducement cost* — — — — (4,768,612) — (4,768,612) Modifications — — 6,716,297 5,562,201 — — 12,278,498 Accretion of Redeemable Convertible Preferred Shares 23,148,378 24,359,297 48,739,310 9,510,712 22,995,748 — 128,753,445 Foreign currency translation adjustment 2,851,785 3,311,309 9,657,984 3,256,021 (3,342,472) — 15,734,627 Balance as of December 31, 2019 183,371,326 212,123,212 613,766,867 205,776,240 229,103,777 — 1,444,141,422 Exercise of Series E warrants — — — — 122,642,269 — 122,642,269 Issuance for cash — — — — — 598,661,700 598,661,700 Issuance costs — — — — — (11,830,318) (11,830,318) Deemed dividends — — — — 12,070,034 — 12,070,034 Accretion of Redeemable Convertible Preferred Shares 504,054,460 515,537,848 1,062,760,468 266,737,805 396,239,268 582,250,109 3,327,579,958 Foreign currency translation adjustment (39,098,264) (41,578,748) (97,129,867) (27,724,670) (40,011,798) (35,717,457) (281,260,804) Balance as of December 31, 2020 648,327,522 686,082,312 1,579,397,468 444,789,375 720,043,550 1,133,364,034 5,212,004,261 Subscription receivables — — (230,086,500) — (106,092,000) — (336,178,500) Carrying amount as of December 31, 2020 648,327,522 686,082,312 1,349,310,968 444,789,375 613,951,550 1,133,364,034 4,875,825,761 * On August 28, 2019, the Series E investors requested to restrict one of the founders, Mr. Li’s ordinary shares for a period of three years, which was a protective clause and was an inducement made to facilitate the investment in the Series E Preferred Shares on behalf of the Company. Therefore, the fair value of the restricted shares recognized as additional paid-in capital and reflected as a reduction of the proceeds allocated to the Series E Preferred Shares. The fair value of restricted shares was estimated by management with the assistance of valuer and involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, including discount rate, risk-free interest rate and subjective judgments regarding the Company’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. As of August 28, 2019, the fair value of the restricted shares was determined to be RMB4,768,612 based on the Company’s ordinary share price on August 28, 2019. The redemption amounts in each of the five years following the date of the latest statement of financial position presented are greater of (1) 100% of the Preferred Shares issue price with an 8% compound per annum, plus any declared but unpaid dividends on such Preferred Shares, which is nil, US$318,355,915, nil, nil and nil as of December 31, 2021, 2022, 2023, 2024 and 2025 and (2) the fair market value of the relevant Preferred Shares. The rights, preferences and privileges of the Redeemable Convertible Preferred Shares are as follows: Redemption Rights Prior to the issuance of Series C Preferred Shares in June 2016, Series A and B Preferred Shares shall be redeemable at the option of holders of the Series A and B Preferred Shares, at any time after the earliest of (i) the fifth (5th) anniversary of the Series A Preferred Shares issue date, if a Qualified Initial Public Offering (“Qualified IPO”), has not been consummated by then, (ii) the time when any material adverse change in the regulatory environment occurs, under which circumstance the captive structure of the Group becomes, has become, or is threaten to become invalid, illegal or unenforceable, or (iii) the date that there is a material breach by the Company or by any direct or indirect owners of the ordinary shares of any of their respective representations, warranties, or undertakings under the transaction documents. Upon the issuance of Series C Preferred Shares in June 2016, the redemption term of Series A and Series B Preferred Shares were modified to be the same as Series C Preferred Shares, in which they were redeemable at the option of holders of these preferred shares: at any time after the fourth (4th) anniversary of the issuance date of Series C Preferred Shares, if the Company has not consummated a Qualified IPO by then, which extends the redemption start date of Series A and B Preferred Shares was extended from July 30, 2019 to June 9, 2020 to be in line with the optional redemption date of Series C Preferred Shares. Upon the issuance of Series D Preferred Shares in February 2018, the redemption term of Series A, B and C Preferred Shares were modified to be the same as Series D Preferred Shares, in which they were redeemable at the option of holders of these preferred shares: at any time after the third (3rd) anniversary of the issuance date of Series D Preferred Shares, if the Company has not consummated a Qualified IPO by then, which extends the redemption start date of Series A, B and C Preferred Shares was extended from June 9, 2020 to March 18, 2021 to be in line with the optional redemption date of Series D Preferred Shares. Upon the issuance of Series E Preferred Shares in August 2019, the redemption term of Series A, B, C and D Preferred Shares were modified to be the same as Series E Preferred Shares, in which they were redeemable at the option of holders of these preferred shares: at any time after the third anniversary of the issuance date of Series E Preferred Shares, if the Company has not consummated a Qualified IPO by then, which extends the redemption start date of Series A, B, C and D Preferred Shares was extended from March 18, 2021 to August 27, 2022 to be in line with the optional redemption date of Series E Preferred Shares. The redemption term of Series F Preferred Shares remained the same as Series E Preferred Shares. The redemption price equals to the greater of (1) 100% of the Preferred Shares issue price with an 8% compound per annum, plus any declared but unpaid dividends on such Preferred Shares, and (2) the fair market value of the relevant Preferred Shares. The fair value of the relevant Preferred Shares was determined by management with the assistance from a valuation firm using management’s estimates and assumptions. The Company recognized changes in the redemption value immediately as they occur and adjust the carrying value of the Redeemable Convertible Preferred Shares to equal the redemption value at the end of each reporting period, as if it were also the redemption date for the Redeemable Convertible Preferred Shares. The Company determines whether an amendment or modification to the terms of Series A, B, C and D Preferred Shares represents an extinguishment based on a fair value approach. If the fair value of the preferred shares immediately before and after the amendment is significantly different (by more than 10%), the amendment or modification represents an extinguishment. The Company has determined that the amendment to the terms of Series A, B, C and D Preferred Shares did not represent an extinguishment, and therefore modification accounting was applied by analogy to the modification guidance contained in ASC 718 20, Compensation—Stock Compensation. The Company accounts for modifications that result in an increase to the fair value of the modified preferred shares as a deemed dividend reconciling net loss to net loss attributable to ordinary shareholders as there is a transfer of value from the ordinary shareholders to the preferred shareholders. Modifications that result in a decrease in the fair value of the modified preferred shares were not recognized. Upon the issuance of Series D Preferred Shares in February 2018, the increase in fair value of Series C Preferred Shares at the modification date resulting from extension of optional redemption date were US$703,375 (equivalent to RMB 4,654,516). Upon the issuance of Series E Preferred Shares in August 2019, the increase in fair value of Series C Preferred Shares and Series D Preferred Shares at the modification date resulting from extension of optional redemption date were US$973,588 (equivalent to RMB6,716,297) and US$806,291 (equivalent to RMB5,562,201), respectively. The inputs for appraising the fair value of the modified preferred shares are the redemption term, volatility, dividend rate and risk-free interest rate. Conversion Rights Each preferred share shall be convertible, at the option of the holder, at any time after the date of issuance of such preferred shares according to a conversion ratio, subject to adjustments for dilution, including but not limited to share splits, share combination, share dividends and distribution and certain other events. Each preferred share shall automatically be converted into ordinary shares, at the applicable then-effective conversion price upon the earlier of (a) the closing of a Qualified IPO, or (b) the date specified by written consent or agreement of the holders of a majority of each round of Preferred Shares with respect to each round of Preferred Shares. Voting Rights Each preferred share shall be entitled to that number of votes corresponding to the number of ordinary shares on an as converted basis. Preferred shares shall vote separately as a class with respect to certain specified matters. Otherwise, the holders of preferred shares and ordinary shares shall vote together as a single class. Dividend Rights Preferred shares holders are entitled to receive dividends at the rate of 8% of the applicable preferred shares issue price, payable out of funds or assets legally available. Such dividends shall be payable only if declared by the Board of Directors and shall be non-cumulative. The Company is not obliged to declare, pay, set aside or make such dividends to preferred shares holders except for (i) a distribution made in liquidation; (ii) applicable exempted distribution, including (a) the purchase, repurchase or redemption of ordinary shares by the Company from terminated employees, officers or consultants in accordance with the ESOP or the share restriction agreement, or pursuant to the exercise of a contractual right of first refusal held by the Company, if any, or pursuant to written contractual arrangements with the Company approved by the Board, and (b) the purchase, repurchase or redemption of the Preferred Shares;(iii) all declared but unpaid dividends on the preferred shares have been paid in full, and (iv) a dividend or distribution is likewise declared, paid, set aside or made, respectively, at the same time with respect to each issued and outstanding preferred share such that the dividend or distribution declared, paid, set aside or made to the holder shall be equal to the dividend or distribution that such holder would have received if such preferred share had been converted into ordinary Shares immediately prior to the record date for such dividend or distribution, or if no such record date is established, the date such dividend or distribution is made, and if such share then participated in and the holder received such dividend or distribution. Liquidation Preferences In the event of any liquidation including deemed liquidation, dissolution or winding up of the Company, holders of the preferred shares shall be entitled to receive a per share amount equal to 100% of the original preferred shares issue price with an 8% compound per annum, plus any declared but unpaid dividends on such preferred shares, in the sequence of Series F Preferred Shares, Series E Preferred Shares, Series D Preferred Shares, Series C Preferred Shares, Series B Preferred Shares and Series A Preferred Shares. After such liquidation amounts have been paid in full, any remaining funds or assets of the Company legally available for distribution to shareholders shall be ratably distributed among the holders of the Preferred Shares, on an as-converted basis, together with the holders of the ordinary shares. The Company classified all series of Redeemable Convertible Preferred Shares as mezzanine equity in the consolidated balance sheets since they are contingently redeemable at the option of the holders after a specified time period. The Company evaluated the embedded conversion option in all series preferred shares to determine if the embedded conversion option require bifurcation and accounting for as a derivative. The Company concluded the embedded conversion option did not need to be bifurcated pursuant to ASC 815 Derivatives and Hedging |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 14. SHARE-BASED COMPENSATION Restricted ordinary shares On August 28, 2019, 8,154,893 ordinary shares held by Cloopen Co., Ltd., which is wholly owned by Mr. Sun Changxun, became restricted with a graded vesting as to 1/3 2/3 In March 2020, the Company, through the VIE, obtained 38% equity interest in one subsidiary, Beijing Baiyi High-tech Information Technology Co., Ltd. (“Baiyi”) from the non-controlling shareholders, who are also the management employees in Baiyi. This transaction was accounted for as equity transactions of changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary according to ASC Topic 810-10-45-23. Therefore, no gain or loss shall be recognized in consolidated statements of comprehensive loss. At the same time, the Company issued 3,706,745 ordinary shares at par value to the management employees. These ordinary shares became restricted and subject to a graded vesting that 1,853,373 restricted ordinary shares will vest on March 25, 2021 and the remaining 1,853,372 restricted ordinary shares will vest evenly over the next twelve months. The fair value of the shares of US$4,855,836 are amortized to consolidated statements of comprehensive loss over the vesting term of two years. In July 2020, the Company accelerated the vesting of 3,706,745 restricted shares so that all the restricted shares vested immediately. The Company accounted for the modification as a Type I (probable-to-probable) modification. Such a modification resulted in the unrecognized share-based compensation expense of US$3,502,071 to be recognized as general and administrative expenses at the time of the modification. A summary of the Company’s restricted ordinary shares held by the Company’s employees for the years ended December 31, 2018, 2019 and 2020 is presented below: Weighted Number of average grant shares date fair value Unvested as of January 1, 2018 3,964,184 0.38 Vested (3,964,184) 0.38 Unvested as of December 31, 2018 — — Granted 8,154,893 1.32 Unvested as of December 31, 2019 8,154,893 1.32 Granted 3,706,745 1.31 Vested (6,425,043) 1.31 Unvested as of December 31, 2020 5,436,595 1.32 Total compensation expenses recognized for restricted ordinary shares for the years ended December 31, 2018, 2019 and 2020 were allocated to the following expense items: Year ended December 31, 2018 2019 2020 RMB RMB RMB General and administrative expenses 1,404,438 15,126,755 70,618,377 Total restricted ordinary shares compensation expenses 1,404,438 15,126,755 70,618,377 In addition to the restricted ordinary shares held by the Company’s employees, 1,700,000 ordinary shares were held by a non-employee founder, which were restricted and have been vested immediately upon the completion of the Company’s initial public offering on February 9, 2021. The fair value of 1,700,000 restricted ordinary shares on grant date is US$110,500. As of December 31, 2020, total unrecognized compensation expense related to restricted ordinary shares were RMB21,312,280, all of which were recognized as compensation expenses on February 9, 2021, the date of the Company’s initial public offering. Shares Options In January 2017, the Company’s shareholders and board of directors approved a share option Plan (“2016 Share Plan”), under which a maximum aggregate number of 21,119,408 ordinary shares may be issued pursuant to all awards to be granted. In September 2018, the Company’s shareholders and board of directors approved that the maximum aggregate number of ordinary shares may be issued under 2016 Share Plan shall be modified to 25,838,502 pre-offering Class A Ordinary Shares. In March 2020 and July 2020, the Company’s shareholders and board of directors approved that the maximum aggregate number of ordinary shares may be issued under 2016 Share Plan shall be modified to 26,419,211 and 29,525,465 pre-offering Class A Ordinary Shares, respectively. In addition, the options may be exercised with respect to 25% to 50% of the shares subject to the options as of the first anniversary of the vesting commencement date with the remaining shares subject to the options shall become vested in equal monthly installments over a period of 12 Under the 2016 Share Plan, 5,412,917, 2,750,000 and 7,700,228 share options were granted to employees, officers, and board members for the years ended December 31, 2018, 2019 and 2020, respectively. A summary of the share options activities for the years ended December 31, 2018, 2019 and 2020 is presented below: Weighted Weighted average remaining Number of exercise contractual Aggregate shares price years intrinsic value US$ US$ Outstanding as of January 1, 2018 17,285,084 0.21 Granted 5,412,917 0.35 Forfeited (748,000) 0.25 Outstanding as of December 31, 2018 21,950,001 0.24 Granted 2,750,000 0.26 Forfeited (3,448,846) 0.27 Outstanding as of December 31, 2019 21,251,155 0.24 Granted 7,700,228 0.30 Forfeited (3,626,948) 0.27 Outstanding as of December 31, 2020 25,324,435 0.25 Vested and expected to vest as of December 31, 2020 25,324,435 0.25 6.60 17,774,121 Exercisable as of December 31, 2020 13,714,193 0.21 4.63 9,130,955 The fair values of the options granted are estimated on the dates of grant using the binomial option pricing model with the following assumptions used: Year ended December 31, Grant dates: 2018 2019 2020 Risk‑free rate of return 3.7%-4.0% 2.50%‑2.90% 1.64%-1.91% Volatility 45-50% 45% 45% Expected dividend yield 0% 0% 0% Exercise multiple 2.20 2.20 2.20 Fair value of underlying ordinary share US$1.14- US$1.19 US$1.19 ‑ US$1.36 US$1.31 ‑ US$5.32 Expiration terms 10 years 10 years 10 years The expected volatility was estimated based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s options. The risk-free interest rate was estimated based on the yield to maturity of U.S. treasury bonds denominated in US$ for a term consistent with the expected term of the Company’s options in effect at the option valuation date. Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future. The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. As the Company did not have sufficient information of past employee exercise history, it has considered the statistics on exercise patterns of employees compiled by Huddart and Lang in Huddart, S., and M. Lang. 1996. “Employee Stock Option Exercises: An Empirical Analysis.” Journal of Accounting and Economics The weighted average grant date fair value of the share options granted during the years ended December 31, 2018, 2019 and 2020 was US$0.90, US$1.09 and US$1.53, respectively. Compensation expense recognized for share options during the years ended December 31, 2018, 2019 and 2020 is allocated to the following expense items: Year ended December 31, 2018 2019 2020 RMB RMB RMB Cost of revenues 142,416 598,204 485,987 Research and development expenses 1,474,597 305,554 1,396,422 Selling and marketing expenses 163,658 4,901,300 998,779 General and administrative expenses 3,607,570 6,523,090 15,276,678 Total share option compensation expenses 5,388,241 12,328,148 18,157,866 As of December 31, 2020, RMB71,120,802 of total unrecognized compensation expense related to share options that are expected to be recognized until 2024 respectively. The share options are expected to be recognized over a weighted average period of approximately 3.75 years. Ordinary shares issued to management employees to acquire their equity interests in the majority-owned subsidiaries In July 2020, the Company, through the VIE, obtained minority interest in three majority-owned subsidiaries from the non-controlling shareholders, among which there are management employees of the three subsidiaries. The consideration included cash consideration of RMB16,095,169 and 3,501,087 ordinary shares, which were issued by the Company on July 15, 2020. These transactions were accounted for as equity transactions of changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary according to ASC Topic 810-10-45-23. Therefore, no gain or loss shall be recognized in consolidated statements of comprehensive loss. The difference between fair value of consideration paid to certain management employees and fair value of the non-controlling interest at the time of acquisition is recognized as share-based compensation expenses in the amount of RMB5,071,378 for the year ended December 31, 2020. Cash consideration of RMB16,095,169 was fully paid before December 31, 2020. Waiver of subscription receivable due from a shareholder On June 10, 2016, the Company issued 16,982,978 ordinary shares at fair value to Mr. Changxun Sun, for an aggregate consideration of US$3,674,376 (the “Subscription Price”). On November 3, 2020, all the shareholders and directors of the Company passed a special resolution to waive the Subscription Price, except for the par value which would be paid by Mr. Changxun Sun. The waiver of the subscription receivable with Mr. Changxun Sun was recorded as compensation expense of US$3,672,678 (equivalent to RMB23,218,856) in the consolidated statements of comprehensive loss for the year ended December 31, 2020. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 15. FAIR VALUE MEASUREMENT The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2020, respectively: December 31, 2019 Total RMB Level 1 Level 2 Level 3 Fair Value Assets Short ‑ term investments Short‑term investments (Note 4) — 2,501,024 — 2,501,024 Long ‑ term investments Available‑for‑sale debt securities (Note 7) — — 2,500,000 2,500,000 Other equity investments (Note 7) — — 33,788,340 33,788,340 Total — — 36,288,340 36,288,340 Liabilities Warrant liabilities (Note 12) — — 19,631,027 19,631,027 December 31, 2020 Total RMB Level 1 Level 2 Level 3 Fair Value Assets Long ‑ term investments Available‑for‑sale debt securities (Note 7) — — 11,800,000 11,800,000 Other equity investments (Note 7) — — 36,400,000 36,400,000 Total — — 48,200,000 48,200,000 Liabilities Warrant liabilities (Note 12) — — 221,742,202 221,742,202 The table below reflects the reconciliation from the opening balances to the closing balances for recurring fair value measurements of the fair value hierarchy for the years ended December 31, 2018, 2019 and 2020: Year ended December 31, 2018 Gain or Losses Foreign currency translation adjustment Included in included in Included other other January 1, in comprehensive comprehensive December 31, RMB 2018 Purchase/Issue Sell earnings loss loss 2018 Assets Short ‑ term investments Short‑term investments (Note 4) 11,772,573 49,000,000 58,384,622 384,622 221,643 — 2,994,216 Long ‑ term investments Other equity investments (Note 7) 12,000,000 — — 17,700,000 — — 29,700,000 Liabilities Warrant liabilities (Note 12) 4,351,777 — — 450,083 — 235,729 5,037,589 Year ended December 31, 2019 Gain or Losses Foreign currency translation adjustment Included in included in other other January 1, Purchase/ Included in comprehensive comprehensive December 31, RMB 2019 Issue Sell earnings loss loss 2019 Assets Short ‑ term investments Short‑term investments (Note 4) 2,994,216 34,000,000 34,614,192 114,192 6,808 — 2,501,024 Long ‑ term investments Available‑for‑sale debt securities (Note 7) — 2,500,000 — — — — 2,500,000 Other equity investments (Note 7) 29,700,000 3,188,340 — 900,000 — — 33,788,340 Total 29,700,000 5,688,340 — 900,000 — — 36,288,340 Liabilities Warrant liabilities (Note 12) 5,037,589 14,852,880 — (137,969) — (121,473) 19,631,027 Year ended December 31, 2020 Gain or Losses Foreign currency translation adjustment Included in included in other other January 1, Purchase/ Included in comprehensive comprehensive December 31, RMB 2020 Issue Sell / Exercise earnings loss loss 2020 Assets Short ‑ term investments Short‑term investments (Note 4) 2,501,024 — 2,512,192 12,192 (1,024) — — Long ‑ term investments Available‑for‑sale debt securities (Note 7) 2,500,000 — — — 9,300,000 — 11,800,000 Other equity investments (Note 7) 33,788,340 457,326 — 2,154,334 — — 36,400,000 Total 36,288,340 457,326 — 2,154,334 9,300,000 — 48,200,000 Liabilities Warrant liabilities (Note 12) 19,631,027 — 16,549,825 221,462,056 — (2,801,056) 221,742,202 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAX | |
INCOME TAX | 16. INCOME TAX a) Income tax The Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. No stamp duty is payable in respect of the issue of the shares or on an instrument of transfer in respect of a share. Hong Kong S.A.R. Under the current Hong Kong S.A.R. Inland Revenue Ordinance, the Company’s Hong Kong S.A.R. subsidiary is subject to Hong Kong S.A.R. profits tax at the rate of 16.5% on its taxable income generated from the operations in Hong Kong S.A.R. Payments of dividends by the Hong Kong S.A.R. subsidiary to the Company is not subject to withholding tax in Hong Kong S.A.R. A two-tiered profits tax rates regime was introduced in 2018 where the first HK$2 million of assessable profits earned by a company will be taxed at half of the current tax rate (8.25%) whilst the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. No provision for Hong Kong profits tax has been made in the financial statements as the subsidiary in Hong Kong has no assessable profits for the years ended December 31, 2018, 2019 and 2020. Japan The Company’s Japan subsidiary, Cloopen Japan Co., Ltd., is subject to Japanese corporation tax (including national corporation tax, local enterprise tax and other income-based taxes) on its worldwide income. The statutory effective tax rate is approximately 30% to 34%, depending on the size of the company. Dividends paid by a Japanese company are generally subject to Japanese withholding tax. If the Japanese company paying dividends is a non-listed company and the payee is a non-resident of Japan, the rate of such withholding tax is 20.42% under Japanese Tax law. The Company enjoys preferential withholding tax rate of 10% under Japan-China tax treaty. The PRC, excluding Hong Kong S.A.R. The Group’s PRC subsidiaries, the VIE, and the VIE’s subsidiaries are subject to the PRC Corporate Income Tax Law (“CIT Law”) and are taxed at the statutory income tax rate of 25%, unless otherwise specified. In March 2007, a new enterprise income tax law (the “New EIT Law”) in the PRC was enacted which became effective on January 1, 2008. The New EIT Law applies a unified 25% enterprise income tax (“EIT”) rate to both foreign invested enterprises and domestic enterprises, unless a preferential EIT rate is otherwise stipulated. On April 14, 2008, relevant governmental regulatory authorities released further qualification criteria, application procedures and assessment processes for meeting the High and New Technology Enterprise (“HNTE”) status under the New EIT Law which would entitle qualified and approved entities to a favorable EIT tax rate of 15%. In April 2009 and June 2017, the State Administration for Taxation (“SAT”) issued Circular Guoshuihan (2009) No. 203 (“Circular 203”) and SAT Announcement (2017) No. 24 (“Announcement 24”) stipulating that entities which qualified for the HNTE status should apply with in-charge tax authorities to enjoy the reduced EIT rate of 15% provided under the New EIT Law starting from the year when the new HNTE certificate becomes effective. The HNTE certificate is effective for a period of three years and can be renewed for another three years. Subsequently, an entity needs to re-apply for the HNTE status in order to be able to enjoy the preferential tax rate of 15%. Ronglian 7Moor obtained the HNTE certificate in December 2016, and subsequently renewed the HNTE certificate in October 2019. Thus, Ronglian 7Moor is entitled to a preferential tax rate of 15% from 2016 to 2021. Beijing Baiyi High-Tech Information Technology Co., Ltd., a subsidiary of the Company, obtained the HNTE certificate in October 2017, which expired in October 2020. In October 2020, Baiyi renewed its HNTE status which entitles it to the preferential income tax rate of 15% from 2020 to 2022. Ronglian Guanghui and Beijing Yunrong Tianxia Technology Co., Ltd., subsidiaries of the Company, obtained the HNTE certificates in December 2017, which expired in December 2020. Thus, Ronglian Guanghui and Beijing Yunrong Tianxia Technology Co., Ltd was entitled to the preferential tax rate of 15% from 2017 to 2019. In October 2020, Beijing Yunrong Tianxia Technology Co., Ltd., renewed its HNTE status which entitled it to the preferential income tax rate of 15% from 2020 to 2022. Due to business scope change, Ronglian Guanghui has no plan to renew the HNTE certificates and could not entitle to the preferential tax rate of 15% after the HNTE certificate became void from January 1, 2020. Ronglian Yitong, a subsidiary of the Company, obtained the HNTE certificate in September 2015 and subsequently renewed the HNTE certificate in September 2018. Thus, it was entitled to the preferential tax rate of 15% from 2015 to 2020. Ronglian Yitong is currently in the process of renewing its HNTE certificate for another three years. Beijing Ronglian Huitong Technology Co., Ltd. and Shenzhen Zhongtian Wangjing Technology Co., Ltd., subsidiaries of the Company, obtained the HNTE certificates in December 2019. Thus, they are entitled to the preferential tax rate of 15% from 2019 to 2021. If any entities fail to maintain the HNTE qualification under the New EIT Law, they will no longer qualify for the preferential tax rate of 15%. The CIT 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 the PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the CIT Law define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside the PRC should be considered a resident enterprise for PRC tax purposes. The components of loss before income taxes are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB The Cayman Islands* (8,508,744) (27,173,956) (331,728,653) Hong Kong S.A.R* (100,880) (21,374) (1,270,314) Japan* (1,843,749) 4,080,678 6,054,598 The PRC, excluding Hong Kong S.A.R. (142,339,777) (159,727,099) (171,271,335) Total (152,793,150) (182,841,751) (498,215,704) *Entities not subject to income tax Withholding tax on undistributed dividends The CIT law also imposes a withholding income tax of 10% on dividends distributed by a foreign investment enterprise (“FIE”) to its immediate holding company outside of Mainland China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within Mainland China or if the received dividends have no connection with the establishment or place of such immediate holding company within Mainland China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement. The Cayman Islands, where the Company is incorporated, does not have such tax treaty with the PRC. According to the arrangement between Mainland China and Hong Kong S.A.R. on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in Mainland China to its immediate holding company in Hong Kong S.A.R. will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). The Group did not record any dividend withholding tax, as the Group’s PRC entities, have no retained earnings in any of the years presented. Income tax expense recognized in the consolidated statements of comprehensive loss consists of the following: Year ended December 31, 2018 2019 2020 RMB RMB RMB Current income tax expense 973,035 307,850 2,492,711 Deferred income tax expense (benefit) 1,699,063 344,760 (868,750) Total income tax expense 2,672,098 652,610 1,623,961 Reconciliation of the differences between the income tax benefit computed based on the PRC statutory income tax rate and the Group’s income tax expense for the years ended December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Computed expected income tax benefit (38,198,288) (45,710,438) (124,553,926) Non-deductible expenses / taxable deemed income Share-based compensation 1,698,170 6,863,726 29,266,619 Accretion of interest expenses on unsecured loans — 1,001,827 3,179,383 Non-deductible entertainment 1,210,158 968,832 984,405 Change in fair value of warrant liabilities 112,521 (34,492) 55,365,514 Taxable deemed interest income from inter-company interest-free loans 176,832 989,741 2,786,532 Others 745,488 1,629,482 3,343,107 Entities not subject to income tax 884,692 (1,217,586) (3,270,423) Research and development expenses bonus deduction (12,090,177) (24,851,250) (21,890,430) HNTE tax incentives (744,674) (266,961) — Over provision in respect of prior years (1,582,864) (166,030) (74,125) Others 104,153 462,947 652,357 Changes in valuation allowance 50,356,087 60,982,812 55,834,948 Actual income tax expense 2,672,098 652,610 1,623,961 b) Deferred income tax assets December 31, 2018 2019 2020 RMB RMB RMB Net operating loss carry forwards 111,643,190 161,427,285 228,979,794 Uninvoiced expenditures 14,587,617 23,400,140 6,204,204 Accounts receivable and contract assets allowance 4,877,088 6,966,170 10,363,565 Long term investments impairment 5,260,379 5,260,379 5,260,379 Goodwill impairment 1,416,835 1,416,835 1,416,835 Share of losses of equity method investments — 140,281 751,836 Others 157,237 28,279 1,356,575 Less: Valuation allowance (132,566,897) (193,549,709) (244,186,061) Total deferred income tax assets, net 5,375,449 5,089,660 10,147,127 Intangible assets (425,467) (259,438) (185,313) Equity method investment on the gain from the disposal of a subsidiary — — (3,724,258) Change in fair value of long-term investment (4,425,000) (4,650,000) (5,188,584) Total gross deferred income tax liabilities (4,850,467) (4,909,438) (9,098,155) Net deferred income tax assets 524,982 180,222 1,048,972 As of December 31, 2020, the Group had net operating loss carry forwards of approximately RMB918 million attributable to the PRC including Hong Kong S.A.R. subsidiaries, the VIE, and the VIE’s subsidiaries. The loss carried forward by the PRC companies will expire during the period from year 2021 to year 2030. As of December 31, 2020, the Group had tax loss carry forwards for PRC including Hong Kong S.A.R. income tax purpose of RMB918,304,867, which will expire if unused by the following year-end: Year ending December 31, RMB 2021 23,070,552 2022 127,827,248 2023 20,759,125 2024 33,794,384 2025 104,952,488 Thereafter 607,901,070 Total 918,304,867 A valuation allowance is provided against deferred income tax assets when the Group determines that it is more likely than not that the deferred income tax assets will not be utilized in the foreseeable future. In making such determination, the Group evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2020, the valuation allowance of RMB244,186,061 was related to the deferred income tax assets of the PRC including Hong Kong S.A.R. entities which were in loss position. As of December 31, 2020, management believes it is more likely than not that the Group will realize the deferred income tax assets, net of the valuation allowance. Changes in valuation allowance are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year (82,210,810) (132,566,897) (193,549,709) Additions (50,356,087) (60,982,812) (55,834,948) Decrease upon disposal of a subsidiary — — 5,198,596 Balance at the end of the year (132,566,897) (193,549,709) (244,186,061) According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is 10 years. There is no statute of limitation in the case of tax evasion. The income tax returns of the Company’s PRC subsidiary, the VIE and the VIE’s subsidiaries for the years from 2015 to 2020 are open to examination by the PRC tax authorities. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
NET LOSS PER SHARE | |
NET LOSS PER SHARE | 17. NET LOSS PER SHARE The following table sets forth the basic and diluted net loss per ordinary share computation and provides a reconciliation of the numerator and denominator for the years presented: Year ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net loss (155,465,248) (183,494,361) (499,839,665) Accretion and modifications of Redeemable Convertible Preferred Shares (106,867,153) (141,031,943) (3,327,579,958) Deemed dividends to Series E Redeemable Convertible Preferred Shareholders — — (12,070,034) Numerator for basic and diluted net loss per ordinary share calculation (262,332,401) (324,526,304) (3,839,489,657) Denominator: Weighted average number of pre‑offering Class A and pre‑offering Class B ordinary shares 91,083,938 89,567,463 85,103,964 Denominator for basic and diluted net loss per ordinary share calculation 91,083,938 89,567,463 85,103,964 Net loss per ordinary share attributable to pre ‑ offering Class A and pre ‑ offering Class B ordinary shareholders — Basic and diluted (2.88) (3.62) (45.12) Securities that could potentially dilute basic net loss per ordinary share in the future that were not included in the computation of diluted net loss per ordinary share because to do so would have been antidilutive for the years ended December 31, 2018, 2019 and 2020 are as follow: Year ended December 31, 2018 2019 2020 Share options 21,950,001 21,251,155 25,324,435 Restricted ordinary shares 1,700,000 9,854,893 7,136,595 Redeemable Convertible Preferred Shares 95,381,376 108,421,528 147,100,329 Warrants 661,376 6,773,946 12,461,061 |
REVENUE INFORMATION
REVENUE INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE INFORMATION | |
REVENUE INFORMATION | 18. REVENUE INFORMATION Revenues The Group’s revenues are disaggregated by major products/services lines, timing of revenue recognition and primary geographical markets (based on the location of customers) as follow: Year ended December 31, Major products/services lines 2018 2019 2020 RMB RMB RMB CPaaS — Text messaging 167,859,282 234,745,048 265,182,655 — Voice calls 60,285,356 67,128,537 71,991,638 — Others (Note1) 27,060,127 43,383,515 62,919,144 Cloud‑based CC 129,198,999 173,593,018 245,135,106 Cloud‑based UC&C 111,931,266 123,165,257 118,310,137 Other services 5,153,637 8,266,792 4,149,440 Revenues 501,488,667 650,282,167 767,688,120 Note 1: Others include CPaaS revenue from the customers’ use of the Group’s Internet of Things (IoT) and jointly-operated CPaaS platforms. Year ended December 31, Timing of revenue recognition 2018 2019 2020 RMB RMB RMB Point in time 353,009,329 474,920,173 597,627,257 Over time 148,479,338 175,361,994 170,060,863 Revenues 501,488,667 650,282,167 767,688,120 Year ended Primary geographical markets (based on the location of customers) December 31, 2018 2019 2020 RMB RMB RMB The PRC 498,615,542 640,290,226 739,975,367 Japan 2,873,125 9,991,941 27,712,753 Revenues 501,488,667 650,282,167 767,688,120 Contract Assets and Contract Liabilities The Group’s contract assets and contract liabilities as of December 31, 2019 and 2020 are as follows: December 31, 2019 2020 RMB RMB Contract assets 25,249,719 36,307,474 Contract liabilities 111,953,381 95,992,689 The contract assets primarily relate to the Group’s rights to consideration for work performed but not invoiced at the reporting date on Cloud-based UC&C projects. The contract assets are transferred to receivables when the rights to consideration become unconditional. The contract liabilities primarily related to the advanced consideration received from customers in relation to the subsequent provision of Cloud-based CC services and/or customization and implementation of Cloud-based UC&C projects. The contract liabilities will be recognized as revenue when the Group fulfils its performance obligations to transfer the promised products or services to customers, which is expected to occur within one year. Changes in the contract assets balances for the years ended December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Gross amount at the beginning of the year 20,021,820 18,985,847 26,781,689 Increases due to revenue recognized during the year 53,536,894 62,994,291 53,180,927 Transfers to accounts receivable during the year (54,572,867) (55,198,449) (38,430,939) Gross amount at the end of the year 18,985,847 26,781,689 41,531,677 Allowance for contract assets (949,292) (1,531,970) (5,224,203) Contract assets, net 18,036,555 25,249,719 36,307,474 The movement of the allowance for contract assets is as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year 1,001,091 949,292 1,531,970 Additions charged to (reversal of) bad debt expense (51,799) 582,678 3,692,233 Balance at the end of the year 949,292 1,531,970 5,224,203 Changes in the contract liabilities balances for the years ended December 31, 2018, 2019 and 2020 are as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year 74,361,332 98,417,522 111,953,381 Revenue recognized that was included in the contract liabilities balance at the beginning of the year (67,051,465) (84,099,618) (81,807,185) Increase due to cash received, excluding amount recognized as revenue during the year 91,107,655 97,635,477 65,846,493 Balance at the end of the year 98,417,522 111,953,381 95,992,689 The amounts of revenue recognized for the years ended December 31, 2018, 2019 and 2020 that were included in the contract liabilities balances at the beginning of the year are RMB67.1 million, RMB84.1 million and RMB81.8 million, respectively. The Company has elected the practical expedient in ASC 606-10-50-14(a) to not disclose the information about remaining performance obligations which are part of contracts that have an original expected duration of one year or less. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Lease commitments The Group leases its offices under non-cancelable operating lease agreements. Rental expenses were RMB17,687,924, RMB19,386,322 and RMB23,563,373 for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, future minimum lease commitments, all under office and facilities non-cancelable operating lease agreements, were as follows: Year ended December 31, RMB 2021 22,225,857 2022 18,649,509 2023 4,551,612 Except for those disclosed above, the Group did not have any significant capital or other commitments, long-term obligations, or guarantees as of December 31, 2020. Legal Proceedings On April 19, 2021, the Group and certain of the Group’s current and former directors and officers and the underwriters in the initial public offering and the agent for service of process in the United States were named as defendants in a securities class action filed in the Supreme Court of the State of New York, New York County. The action, purportedly brought on behalf of a class of persons who allegedly suffered damages as a result of their trading in the ADSs, alleges that the Group’s registration statement on Form F-1 in connection with the initial public offering contained material misstatements and omissions in violation of the U.S. federal securities laws, including those relating to the estimates on financial results of the fourth quarter of 2020. The plaintiff sought to, among others, have the court certify the class action as well as award damages, reasonable costs and expenses and other relief as deemed appropriate by the court in favor of the class. This action remains in its preliminary stage, and the Group are currently unable to estimate the potential loss, if any, associated with the resolution of such lawsuit, if it proceeds. The Group believe this case is without merit and intend to defend the actions vigorously. In accordance with ASC Topic 450, no accrual of loss contingency was accrued as of December 31, 2020 since it is not probable that a liability has incurred and the amount of loss cannot be reasonably estimated. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 20. RELATED PARTY TRANSACTIONS (i) Name of Related Parties Relationship with the Company Beijing Puhui Sizhong Technology Limited Company A company controlled by Mr. Changxun Sun Changxun Sun, Zhiqiang Xu, Muchao Deng Three management employees Beijing Jingu Shitong Technology Co., Ltd An equity investee Hi Sun Technology (China) Limited A company that controls Main Access Limited, an entity that is a shareholder of the Company (ii) Year ended December 31, Note 2018 2019 2020 Interest free loans provided to related parties: -Three management employees (a) 4,000,000 — 2,550,000 -Beijing Jingu Shitong Technology Co., Ltd (a) — — 1,400,000 Interest free loans collected from related parties: -Three management employees (a) 3,180,000 310,000 4,160,000 Cloud-based UC&C services provided to a related party: -Hi Sun Technology (China) Limited (b) 38,524,686 38,280,256 25,681,928 Sub-lease income from an equity investee: -Beijing Jingu Shitong Technology Co., Ltd (c) — — 316,981 Project development services purchased from a related party: -Hi Sun Technology (China) Limited (d) 1,287,644 7,901,958 386,321 Research and development services purchased from a related party: -Hi Sun Technology (China) Limited (d) — — 6,006,664 Rental expenses paid for a related party: -Beijing Puhui Sizhong Technology Limited Company (e) 130,000 100,000 150,000 (a) Interest free loans provided to and collected from related parties For the years ended December 31, 2018, 2019 and 2020, the Company provided interest-free loans of RMB 4,000,000, nil and RMB2,550,000, respectively, to the three management employees of the Group. For the years ended December 31, 2018, 2019 and 2020, the Company collected interest-free loans of RMB3,180,000, RMB310,000 and RMB4,160,000, respectively, from the three management employees of the Group. As of December 31, 2019 and 2020, the amounts due from the three management employees were RMB2,510,000, and RMB900,000, respectively. The Company received repayments of RMB900,000 in cash from the three management employees of the Group in January 2021. For the year ended December 31, 2020, the Company provided interest-free loans of RMB1,400,000 to Beijing Jingu Shitong Technology Co., Ltd. (“Jingu”). As of December 31, 2020, the amount due from Jingu was RMB1,400,000. The Company received RMB1,400,000 in cash from Jingu in January 2021. (b) Cloud-based UC&C services provided to a related party The Company provided Cloud-based UC&C services to subsidiaries of Hi Sun Technology (China) Limited (“Hi Sun Group”), a company which controls Main Access Limited, one of the Company’s shareholders. Revenues of RMB38,524,686, RMB38,280,256 and RMB25,681,928 were recorded in the consolidated statements of comprehensive loss for the years ended December 31, 2018, 2019 and 2020, respectively. Amounts due from Hi Sun Group were RMB12,501,982 and RMB9,447,148 as of December 31, 2019 and 2020, which are included in accounts receivable - a related party, net on the consolidated balance sheets. Deposits for performance guarantee, which are included in amounts due from related parties on the consolidated balance sheets, were RMB3,935,606 as of December 31, 2019 and 2020, respectively. (c) Sub-lease income from an equity investee For the year ended December 31, 2020, the Group leased office to Jingu with sub-lease income of RMB316,981. As of December 31, 2020, the amount due from the equity investee was RMB39,623. (d) Outsourcing services purchased from a related party The Company purchased project development services from Hi Sun Group, which is included in cost of revenues of RMB1,287,644, RMB7,901,958 and RMB386,321 for the years ended December 31, 2018, 2019 and 2020, respectively and research and development services, which is included in research and development expenses of nil, nil and RMB6,006,664 for the years ended December 31, 2018, 2019 and 2020, respectively. Amounts due to Hi Sun Group were RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020, respectively, which is included in amounts due to a related party on the consolidated balance sheets. (e) Rental expenses paid for a related party For the years ended December 31, 2018, 2019 and 2020, the Group paid rental expenses of RMB130,000, RMB100,000 and RMB150,000, respectively on behalf of Beijing Puhui Sizhong Technology Limited Company (“Puhui Sizhong”), a company affiliated with Mr. Changxun Sun, the Group’s founder and a board member. The Group did not expect to collect the amount paid from Puhui Sizhong and therefore recognized the rental expenses paid on behalf of Puhui Sizhong as general and administrative expenses. (iii) December 31, Note 2019 2020 Accounts receivable - a related party, net: -Hi Sun Technology (China) Limited (b) 12,501,982 9,447,148 Amounts due from related parties: -Three management employees (a) 2,510,000 900,000 -Beijing Jingu Shitong Technology Co., Ltd (a) (c) — 1,439,623 -Hi Sun Technology (China) Limited (b) 3,935,606 3,935,606 Total amounts due from related parties 6,445,606 6,275,229 Amounts due to a related party: -Hi Sun Technology (China) Limited (d) 3,180,095 2,813,041 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS (a) Coronavirus Impact Since the outbreak of COVID-19 throughout China and other countries and regions, a series of precautionary and control measures have been implemented worldwide to contain the virus. The outbreak of COVID-19 has had certain negative impact on the overall economy of the regions where the Company deliver its products or services. Any economic slowdown and/or negative business sentiment could potentially have an impact on the industries in which the Company’s major customers operate, including the settlement of the outstanding accounts receivable from these customers. The Group will continue to closely focus on both global and domestic situation of concerning its prevention and control, and cope with the related impacts on the Company actively. (b) Share option issuance Subsequent to December 31, 2020, the Company granted share options to purchase up to 4,025,499 ordinary shares with a weighted-average exercise price of US$0.248 per share. Based on the fair value per share at issuance date, the Company estimates it will recognize approximately RMB205.4 million (equivalent to US$31.5 million) (unaudited) of share-based compensation expense related to these share options over the requisite service period of 3 (c) Exercise of Series F warrant On January 7, 2021, the Series F warrant (Note 12) was fully exercised with the exercise price of US$34,000,000 and the Company issued 11,799,685 Series F Redeemable Convertible Preferred Shares to Novo Investment. (d) Acquisition of equity interest in a majority-owned subsidiary In January 2021, the Company acquired 45% equity interest in a majority-owned subsidiary, Cloopen Japan Co., Ltd. (“Cloopen Japan”) by issuing 1,424,312 ordinary shares to the non-controlling shareholders, who are also the management employees in Cloopen Japan. These transactions were accounted for as equity transactions of changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary according to ASC Topic 810-10-45-23. Therefore, no gain or loss shall be recognized in consolidated statements of comprehensive loss. The difference between fair value of consideration paid to the management employees and fair value of the non-controlling interest at the time of acquisition is recognized as share-based compensation expenses in the amount of RMB21.5 million (unaudited). (e) Initial Public Offering In February 2021, the Company completed its IPO on the New York stock exchange and issued 23,000,000 ADSs for a net proceeds of US$342.2 million (equivalent to RMB2.2 billion) at an issuance price of US$16 per ADS. Each ADS represents two ordinary shares. The issued and outstanding 158,900,014 redeemable convertible preferred shares were converted to Class A ordinary shares on a one-for-one-basis at the same time in the amount of US$1.27 billion (equivalent to RMB8.20 billion), which includes accretion from January 1, 2021 to February 9, 2021, the date of the Company’s initial public offering. The issued and outstanding 95,140,749 pre-offering ordinary shares were converted to Class A ordinary shares on a one-for-one-basis at the same time, and the remaining 25,649,839 pre-offering ordinary shares were converted to Class B ordinary shares. (f) Acquisition of EliteCRM On March 10, 2021, the Company entered into a definitive agreement to acquire all the equity interests of EliteCRM in exchange for RMB180 million, which is a customer relationship management software provider. The Company completed the acquisition on March 22, 2021. At the same time, the Company paid 70% of cash consideration amounting to RMB126 million and issued 2,411,177 ordinary shares to certain management members of EliteCRM, which become restricted and are subject to a vesting schedule of two years and forfeiture to the extent any restricted shares remains unvested in case of early termination of employment. The remaining RMB54 million will be paid by December 31, 2021. The transaction will be accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations and the allocation of the consideration transferred to the assets acquired and liabilities assumed, and the related estimated lives of depreciable tangible and identifiable intangible assets will require a significant amount of judgment. As of the date of this filing, the initial accounting for this business combination and pro forma analysis for this business combination was incomplete as the Company is in the process of determining the fair value of assets acquired and liabilities assumed at the acquisition date. (g) Exercise of Series C warrants On March 22, 2021, China Equities HK Limited (“China Equities”) exercised the Series C warrants (Note 12), which entitled China Equities to purchase an aggregate of 664,611 shares of the Company’s Series C Redeemable Convertible Preferred Shares at an exercise price of US$0.9404 per share. China Equities paid the exercise price by surrendering 26,042 Series C Redeemable Convertible Preferred Shares that it would entitle to receive upon a cash exercise of the warrant. Accordingly, by virtue of the cashless exercise of the warrant, the Company issued 638,569 Class A Ordinary Shares to China Equities, assuming the conversion and redesignation of all series C Redeemable Convertible Preferred Shares into Class A Ordinary Shares on a one-for-one basis after the Company’s consummation of IPO. |
PARENT ONLY FINANCIAL INFORMATI
PARENT ONLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
PARENT ONLY FINANCIAL INFORMATION | |
PARENT ONLY FINANCIAL INFORMATION | 22. PARENT ONLY FINANCIAL INFORMATION The following condensed parent company financial information of Cloopen Group Holding Limited has been prepared using the same accounting policies as set out in the accompanying consolidated financial statements. As of December 31, 2020, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of Cloopen Group Holding Limited, except for those, which have been separately disclosed in the consolidated financial statements. (a) Condensed Balance Sheets December 31, 2019 2020 RMB RMB Assets Current assets Cash 355,008 1,144,361 Term deposits — 160,349,418 Other current assets 17,409 358,925 Total current assets 372,417 161,852,704 Non ‑ current assets: Investments in and amounts due from subsidiaries and consolidated VIE and VIE’s subsidiaries 227,116,226 465,440,853 Total non ‑ current assets 227,116,226 465,440,853 Total assets 227,488,643 627,293,557 Liabilities Current liabilities Amounts due to VIE — 230,086,500 Accrued expenses and other current liabilities 707 5,549,245 Warrant liabilities — 202,271,900 Total current liabilities 707 437,907,645 Non ‑ current liabilities Non‑current warrant liabilities 19,631,027 19,470,302 Total non ‑ current liabilities 19,631,027 19,470,302 Total liabilities 19,631,734 457,377,947 Mezzanine equity Series A Redeemable Convertible Preferred Shares 183,371,326 648,327,522 Series B Redeemable Convertible Preferred Shares 212,123,212 686,082,312 Series C Redeemable Convertible Preferred Shares 613,766,867 1,579,397,468 Series D Redeemable Convertible Preferred Shares 205,776,240 444,789,375 Series E Redeemable Convertible Preferred Shares 229,103,777 720,043,550 Series F Redeemable Convertible Preferred Shares — 1,133,364,034 Subscription receivables for Series C and Series E Redeemable Convertible Preferred Shares — (336,178,500) Total mezzanine equity 1,444,141,422 4,875,825,761 Shareholders’ deficit: Pre‑offering Class A ordinary shares 23,519 28,592 Pre‑offering Class B ordinary shares 33,348 33,348 Subscription receivables (23,219,901) — Accumulated other comprehensive income (loss) (72,548,649) 208,672,218 Accumulated deficit (1,140,572,830) (4,914,644,309) Total shareholders’ deficit (1,236,284,513) (4,705,910,151) Total liabilities, mezzanine equity and shareholders’ deficit 227,488,643 627,293,557 (b) Condensed Statements of Comprehensive Loss Year ended December 31, 2018 2019 2020 RMB RMB RMB Total operating expenses (7,618,417) (38,552,132) (108,331,537) Change in fair value of warrant liabilities (450,083) 137,969 (221,462,056) Share of losses from subsidiaries and consolidated VIE and VIE’s subsidiaries (147,396,748) (145,080,198) (170,046,072) Loss before income taxes (155,465,248) (183,494,361) (499,839,665) Income tax expense — — — Net loss (155,465,248) (183,494,361) (499,839,665) Accretion and modification of Redeemable Convertible Preferred Shares (106,867,153) (141,031,943) (3,327,579,958) Deemed dividends to Series E Redeemable Convertible Preferred Shareholders — — (12,070,034) Net loss attributable to ordinary shareholders (262,332,401) (324,526,304) (3,839,489,657) (c) Condensed Statements of Cash Flows Year ended December 31, 2018 2019 2020 RMB RMB RMB Net cash used in operating activities (268,540) (3,038,499) (1,221,553) Net cash used in investing activities (154,188,532) (218,538,384) (597,733,655) Net cash provided by financing activities 159,782,892 215,232,018 601,198,643 Effect of foreign currency exchange rate changes on cash 550,960 (10,038) (1,454,082) Net (decrease) increase in cash 5,876,780 (6,354,903) 789,353 Cash at the beginning of the year 833,131 6,709,911 355,008 Cash at the end of the year 6,709,911 355,008 1,144,361 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | (a) Basis of Presentation The accompanying consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying consolidated financial statements contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group’s ability to operate profitably, to generate cash flows from operations, and its ability to attract investors and to borrow funds on reasonable economic terms. Reclassification of prior-year presentation Certain prior year amounts have been reclassified for consistency with the current period presentation. Reclassifications have been made to the Consolidated Balance Sheet as of December 31, 2019, including: 1) Presenting “Accounts receivable – a related party, net” totaling RMB 12.5 million as a separate balance sheet line item, which was previously reported in “Accounts receivables, net”; 2) Presenting “Accounts receivable - third parties, net” totaling RMB 206.6 million as a separate balance sheet line item, which was previously reported in “Accounts receivables, net”; 3) Presenting “Amounts due from related parties” totaling RMB 3.9 million as a separate balance sheet line item, which was previously reported in “Prepayments and other current assets”; 4) Presenting “Amounts due to a related party” totaling RMB 3.2 million as a separate balance sheet line item, which was previously reported in “Accounts payable”. These changes in classification and presentation do not affect previously reported financial position, results of operations, and cash flows for the year ended December 31, 2019. |
Principles of Consolidation | (b) Principles of Consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE for which the WFOE is the primary beneficiary, and the VIE’s subsidiaries. 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, exercises effective control over the activities that most impact the economic performance, bears the risks of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All intercompany transactions and balances among the Company, its subsidiaries, the VIE, and the VIE’s subsidiaries have been eliminated upon consolidation. |
Use of Estimates | (c) Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, determining the selling price of products and services in multiple element revenue arrangements, the allowance for doubtful accounts receivable and contract assets, depreciable lives and recoverability of property and equipment and intangible assets, the realization of deferred income tax assets, the fair value of share based compensation awards, redeemable convertible preferred shares, available-for-sale debt securities, other equity investments and warrant liabilities, and the fair value of the ordinary shares to determine the existence of beneficial conversion feature of the redeemable convertible preferred shares. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Convenience Translation | (d) Convenience Translation Translations of the consolidated financial statements from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00 = RMB6.5250, representing the noon buying rate in The City of New York for cable transfers of RMB as set forth in the H.10 weekly statistical release of Federal Reserve Board on December 31, 2020. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. |
Commitments and Contingencies | (e) Commitments and Contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Cash | (f) Cash Cash consists of cash on hand and cash at bank. Cash at bank are deposited in financial institutions at below locations: December 31, 2019 2020 RMB RMB Cash on hand 118,613 719 Cash balances include deposits in: Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) 52,225,475 68,083,153 — Denominated in US$ 103,577,057 223,435,361 — Denominated in Hong Kong S.A.R. Dollar (“HKD”) 19,057 17,088 Total cash balances held at mainland PRC financial institutions 155,821,589 291,535,602 Financial institutions in Japan — Denominated in Japanese Yen 8,177,879 5,028,888 Total cash balances held at Japan financial institutions 8,177,879 5,028,888 Total cash balances held at financial institutions 163,999,468 296,564,490 Total cash balances 164,118,081 296,565,209 The bank deposits, including term deposits and restricted cash, with financial institutions in the mainland of the PRC and Japan are insured by the government authorities up to RMB500,000 and JPY10,000,000, respectively. The bank deposits including term deposits and restricted cash are insured by the government authorities with amounts up to RMB8,665,785 and RMB13,402,156 as of December 31, 2019 and 2020, respectively. The Company has not experienced any losses in uninsured bank deposits and does not believe that it is exposed to any significant risks on cash held in bank accounts. To limit exposure to credit risk, the Company primarily places bank deposits with large financial institutions in the PRC and Japan with acceptable credit rating. |
Restricted cash | (g) Restricted cash Cash balances that have restrictions as to withdrawal or usage are considered restricted cash. Restricted cash that will be released to cash within the next 12 months is classified as current asset, while the balance restricted for use longer than one year is classified as non-current asset on the consolidated balance sheets. |
Term deposits | (h) Term deposits Term deposits represent deposits at banks with original maturities more than three months but less than one year. The Group’s term deposits were denominated in US$ and were deposited at financial institutions in the mainland of the PRC with the interest rate of 2.4% and 1% per annum as of December 31, 2019 and 2020, respectively. Term deposits maintained at financial institutions consist of the following: December 31, 2019 2020 RMB RMB US$ denominated bank deposits with financial institutions in the PRC 69,762,000 160,349,418 To limit exposure to credit risk relating to bank deposits, the Company primarily places term deposits only with large financial institutions in the PRC with acceptable credit rating. |
Accounts Receivable | (i) Accounts Receivable Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Management considers the following factors when determining the collectability of specific accounts: historical experience, credit worthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. An allowance for doubtful accounts is made and recorded into general and administrative expenses based on aging of accounts receivable and on any specifically identified accounts receivable that may become uncollectible. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Group estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Group does not have any off-balance sheet credit exposure related to its customers. |
Long-term Investments | (j) Long-term Investments Debt securities The Group accounts for debt securities as available-for-sale (“AFS”) when they are not classified as either trading or held-to-maturity. AFS securities are recorded at fair value, with unrealized gains and losses, net of related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive loss until realized. Realized gains and losses from the sale of AFS securities are determined on a specific-identification basis. An impairment loss on the AFS securities are recognized in the consolidated statement of comprehensive loss when the decline in value is determined to be other-than-temporary. No impairment loss was recognized for the years ended December 31, 2018, 2019 and 2020. Equity method investments The Group applies the equity method to account for an equity interest in an investee over which the Group has significant influence but does not own a majority equity interest or otherwise control. Under the equity method of accounting, the Group’s share of the investee’s results of operations is reported as share of losses of equity method investments in the consolidated statements of comprehensive loss. The Group recognizes an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other than temporary. The process of assessing and determining whether impairment on an investment is other than temporary requires a significant amount of judgment. To determine whether an impairment is other than temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee. Other equity investments The Group measures investments in equity securities at cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. The Group considers information in periodic financial statements and other documentation provided by the investees to determine whether observable price changes have occurred. The Group makes a qualitative assessment considering impairment indicators to evaluate whether the equity investments without a readily determinable fair value is impaired at each reporting period, and written down to its fair value if a qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value. If an equity security without a readily determinable fair value is impaired, the Group includes an impairment loss in net income equal to the difference between the fair value of the investment and its carrying amount. |
Property and Equipment, net | (k) Property and Equipment, net Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. The estimated useful lives are as follows: Computer and office equipment 3 Furniture and fixtures 3 Motor vehicles 5 years Leasehold improvements The shorter of lease terms and estimated useful lives Software 5 Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred. |
Intangible Assets, net | (l) Intangible Assets, net Intangible assets represent telecommunication business operation licenses and software copyrights that acquired through assets acquisition, which are initially recognized and measured at cost, and amortized on a straight-line basis over their respective estimated useful lives, which range from 3 |
Impairment of Long-lived Assets | (m) Impairment of Long-lived Assets Long-lived assets such as property and equipment and intangible assets with finite lives are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment of long-lived assets was recognized for the years ended December 31, 2018, 2019 and 2020. |
Value Added Taxes | (n) Value Added Taxes The Company’s PRC subsidiaries are subject to value added tax (“VAT”). Revenue from providing cloud communication services and communication devices sales are generally subject to VAT at the rate of 6% and 13% since April 1, 2019, or 6% to 16% between May 1, 2018 and April 1, 2019, and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other current liabilities, and the excess of input VAT over output VAT is reflected in prepayments and other current assets in the consolidated balance sheets. |
Short-term Investments | (o) Short-term Investments The Group’s short-term investments represent the Group’s investments in financial products managed by financial institutions in the PRC which are redeemable at the option of the Group on any working day. Short-term investments are reported at fair value, with unrealized holding gains or losses, net of any related income tax effect, excluded from earnings and recorded as a separate component of accumulated other comprehensive loss until realized. Realized gains or losses from the sale of short-term investments are determined on a specific identification basis and are recorded as investment income when earned. |
Warrant Liabilities | (p) Warrant Liabilities The freestanding warrants to purchase redeemable convertible preferred shares at a future date were determined to be freestanding instruments that were accounted for as liabilities. At initial recognition, the Group recorded the warrant liabilities on the consolidated balance sheets at their estimated fair value and changes in estimated fair values were included in the change in fair value of warrant liabilities on the consolidated statement of comprehensive loss or allocated to the proceeds from the issuance of the debt instrument to the warrants based on the warrant liabilities fair value. The warrant liabilities are subject to remeasurement at each reporting period and the Group adjusted the carrying value of the warrant liabilities to fair value at the end of each reporting period utilizing the binominal option pricing model, with changes in estimated fair value included in the change in fair value of warrant liabilities on the consolidated statement of comprehensive loss. |
Fair Value Measurements | (q) Fair Value Measurements Fair value represents 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Accounting guidance establishes a three-level fair value hierarchy and 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 are: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group primarily consist of cash, restricted cash, term deposits, short-term investments, accounts receivable - third parties, net, accounts receivable – a related party, net, other receivables included in prepayments and other current assets, available-for-sale debt securities, other equity investments, equity method investment, amounts due from related parties, short-term borrowings and long-term borrowings, accounts payable, contract liabilities, other payables included in accrued expenses and other current liabilities and warrant liabilities. The Group measures short-term investments at fair value on a recurring basis. Short-term investments include financial products issued by financial institutions, which are valued based on prices per units quoted by issuers and are categorized in Level 2 of the fair value hierarchy. Available-for-sale debt securities, other equity investments and warrant liabilities were measured at fair value using unobservable inputs and categorized in Level 3 of the fair value hierarchy. As of December 31, 2019 and 2020, the carrying values of other financial instruments approximated to their fair values due to the short-term maturity of these instruments. The Group’s non-financial assets, such as intangible assets and property and equipment, would be measured at fair value only if they were determined to be impaired. |
Revenue recognition | (r) Revenue recognition The Company generate substantially all of the Company’s revenues from the following services and products: (1) (2) (3) The Company recognizes revenue upon the transfer of control of promised products or services provided to the Company’s customers, in the amount of consideration the Company expect to receive for those products or services (excluding sales taxes collected on behalf of government authorities). The Company’s revenue contracts generally do not include a right of return in relation to the delivered products or services. The timing of revenue recognition may differ from the timing of invoicing to the Company’s customers. The Company record a contract asset when revenue is recognized prior to invoicing, and a contract liability when payment is received from a customer in advance of revenue recognition. The Company generally issue invoices based on contract terms, which may be when the services are completed, upon customer acceptance of the Company’s deliverables or at preset milestones. Payments are due with standard payment terms which are generally not more than 90 days from invoice issuance. CPaaS revenues The Company accounts for revenue from customers’ usage of text message and voice call services on the Company’s CPaaS platform as two separate performance obligations. The Company’s service fees are determined by applying the contractual unit price to the monthly usage volume of text messages sent or minutes of voice calls placed and a contractual monthly fixed charge per subscriber multiplied by the number of subscribers recorded by the Company’s CPaaS platform where relevant. The cloud-based services to send text messages and place voice calls are sold separately to customers with observable standalone selling prices. The service contracts are generally with a length between 3 Cloud-based CC revenues Customers subscribe to the Company’s basic Cloud-based CC services at a fixed monthly fee and pay for other value-added services on a usage basis. The Company recognizes the monthly service fees ratably over the contract period during which the Company is obligated to grant customers continuous access to those basic Cloud-based CC services. Revenue for other value-added services on top of the basic subscription is determined by applying the contractual unit price to the monthly usage volume and recognized when the related services are provided to customers. The basic subscription is sold to customers at the same price with or without the value-added services, so the transaction price is allocated on the basis of observable stand-alone selling prices. The service contracts are generally with a length between 3 Cloud-based UC&C revenues The Company offers customized Cloud-based UC&C solutions to customers with tailored functionalities and interfacing capabilities suitable to their complicated IT environment. The Company has identified that the nature of our overall promise to customers as the provision of an appropriately customized and interfaced software solution comprising the customized UC&C license and other highly interdependent and interrelated services, and have accounted for the promise as one combined performance obligation. The Company applies an iterative process to design, test and implement the software in customers’ IT environment and recognizes revenue for this performance obligation over a period of time during which the control of the customized UC&C solution is progressively transferred to the customers. The Company uses an input method to estimate progress, based on the proportion of the labour hours incurred relative to the estimated total labour hours. The Company’s Cloud-based UC&C contracts generally include a standard assurance-type warranty. |
Cost of Revenues | (s) Cost of Revenues Cost of revenues mainly consists of payroll and related costs for employees, communication service expense associated with the use of facilities and equipment by these employees, such as rental and depreciation expenses, communication service expense charges to telecom operators or its distributors and cloud service fees to cloud service providers. |
Research and Development Expenses | (t) Research and Development Expenses Research and development expenses mainly consist of payroll and related costs for employees involved in researching and developing new technologies, in the field of cloud communication, and outsourced design expenses as well as expenses associated with the use by these functions of facilities and equipment, such as rental and depreciation expenses. Research and development expenses are expensed as incurred. |
Selling and Marketing Expenses | (u) Selling and Marketing Expenses Selling and marketing expenses mainly consist of advertising expenses, promotion expenses, payroll and related expenses for personnel engaged in selling and marketing activities and expenses associated with the use by these functions of facilities and equipment, such as rental and depreciation expenses. Advertising expenses are expensed when incurred and are included in selling expenses in the consolidated statements of comprehensive loss. For the years ended December 31, 2018, 2019 and 2020, the advertising expenses were RMB12,013,725, RMB15,842,771 and RMB27,253,585, respectively. |
General and Administrative Expenses | (v) General and Administrative Expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, expenses associated with the use of facilities and equipment by these employees, such as rental and depreciation expenses, professional fees and other general corporate expenses. |
Share-based Compensation | (w) Share-based Compensation Share-based awards granted to the founders in the form of restricted shares are measured at the grant date fair value of the awards, and are recognized as compensation expense using the graded-vesting method. The Group elects to recognize the effect of forfeitures in compensation cost when they occur. Share-based awards granted to employees are measured at the grant date fair value of the awards, and are recognized as compensation expense with graded-vesting schedules over the requisite service period for each separately vesting portion (or tranche) of the award. The Group elects to recognize the effect of forfeitures in compensation cost when they occur. To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards is reversed. Share-based compensation in relation to the restricted ordinary shares is measured based on the fair value of the Company’s ordinary shares at the grant date of the award, which is estimated using the income approach and equity allocation method. Estimation of the fair value of the Company’s ordinary shares involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, discount rate, risk-free interest rate and subjective judgments regarding the Company’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. Share-based compensation in relation to the share options is estimated using the binominal option pricing model. The determination of the fair value of share options is affected by the fair value of the Company’s ordinary shares as well as the assumptions regarding a number of complex and subjective variables, including the expected share price volatility, risk-free interest rate, exercise multiple and expected dividend yield. The fair value of these awards was determined by management with the assistance from a valuation report prepared by an independent valuation firm using management’s estimates and assumptions. A change in any of the terms or conditions of share-based awards is accounted for as a modification of the awards. The Company calculates incremental compensation cost of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified at the modification date. For vested awards, the Company recognizes incremental compensation cost in the period the modification occurs. For awards not being fully vested, the Company recognizes the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original awards over the remaining requisite service period after modification. |
Employee Benefits | (x) Employee Benefits The Company’s subsidiaries and the VIE and VIE’s subsidiaries in the PRC participate in a government mandated, multi-employers, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. PRC labor laws require the entities incorporated in the PRC to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate on the monthly basic compensation of qualified employees. The Group has no further commitments beyond its monthly contribution. Employee social benefits included as expenses in the accompanying consolidated statements of comprehensive loss amounted to RMB60,765,557, RMB66,161,467 and RMB43,023,105 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Income Taxes | (y) Income Taxes Current income taxes are provided on the basis of income before income taxes for financial reporting purposes, and adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions. Deferred income taxes are provided using the liability method. Under this method, deferred income tax assets and liabilities are recognized for the tax effects of temporary differences and are determined by applying enacted statutory tax rates that will be in effect in the period in which the temporary differences are expected to reverse to the temporary differences between the financial statements’ carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred income tax assets will not be realized. The effect on deferred income taxes arising from a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change. The Group applies a “more likely than not” recognition threshold in the evaluation of uncertain tax positions. The Group recognizes the benefit of a tax position in its consolidated financial statements if the tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits, and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. Adjustments, if required, are recorded in the Group’s consolidated financial statements in the period in which the change that necessities the adjustments occur. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in certain circumstances, a tax appeal or litigation process. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expenses and general and administrative expenses, respectively. As of December 31, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. |
Operating Leases | (z) Operating Leases The Group leases premises for offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis commencing with the beginning of the lease term. |
Foreign Currency Translation and Foreign Currency Risks | (aa) Foreign Currency Translation and Foreign Currency Risks The Company’s reporting currency is RMB. The functional currency of the Company and its subsidiary incorporated at Hong Kong S.A.R. is the US$. The functional currency of the Company’s subsidiary incorporated at Japan is JPY. The functional currency of the Company’s PRC subsidiary, the VIE and the VIE’s subsidiaries is RMB. Transactions denominated in currencies other than the functional currency are remeasured into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in a foreign currency are remeasured into the functional currency using the applicable exchange rate at the balance sheet date. The resulted exchange differences are recorded as foreign currency exchange gains (losses), net in the consolidated statements of comprehensive loss. The financial statements of the Company, its subsidiary incorporated at Hong Kong S.A.R. and its subsidiary incorporated at Japan are translated from the functional currency into RMB. Assets and liabilities are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings (deficits) generated in the current period are translated into RMB using the appropriate historical rates. Revenues, expenses, gains and losses are translated into RMB using the average exchange rates for the relevant period. The resulted foreign currency translation adjustments are recorded as a component of other comprehensive loss in the consolidated statements of comprehensive loss, and the accumulated foreign currency translation adjustments are recorded as a component of accumulated other comprehensive loss in the consolidated statements of changes in shareholders’ deficit. RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the PRC government, controls the conversion of RMB to foreign currencies. The value of RMB is subject to changes of central government policies and international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. |
Concentration and Risk | (bb) Concentration and Risk Concentration of customers and suppliers No customers individually represent greater than 10.0% of total revenues of the Group during the years ended December 31, 2019 and 2020. No suppliers individually represent greater than 10.0% of total purchases of the Group during the years ended December 31, 2019 and 2020. No customers individually represent greater than 10.0% of accounts receivable, net including related party amounts and contract assets as of December 31, 2019 and 2020. No suppliers individually represent greater than 10.0% of total accounts payable of the Group as of December 31, 2019 and 2020. No customers individually represent greater than 10.0% of contract liabilities of the Group as of December 31, 2019 and 2020. No suppliers individually represent greater than 10.0% of prepayments and other current assets excluding related party amounts of the Group as of December 31, 2019. One supplier individually represents 10.1% of prepayments and other current assets excluding related party amounts of the Group as of December 31, 2020. Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash, restricted cash, term deposits, short-term investments and accounts receivable. The Group’s investment policy requires cash, restricted cash, term deposits and short-term investments to be placed with high-quality financial institutions and to limit the amount of credit risk from any one issuer. The Group regularly evaluates the credit standing of the counterparties or financial institutions. The Group conducts credit evaluations on its customers prior to delivery of goods or services. The assessment of customer creditworthiness is primarily based on historical collection records, research of publicly available information and customer on-site visits by senior management. Based on this analysis, the Group determines what credit terms, if any, to offer to each customer individually. If the assessment indicates a likelihood of collection risk, the Company will not deliver the services or sell the products to the customer or require the customer to pay cash, post letters of credit to secure payment or to make significant down payments. Interest rate risk The Group’s short-term bank borrowings bears interests at fixed rates. If the Group were to renew these loans, the Group might be subject to interest rate risk. |
Loss per Share | (cc) Loss per Share Basic loss per share is computed by dividing net loss attributable to ordinary shareholders, considering the accretions to redemption value of the preferred shares, by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, any net income is allocated between ordinary shares and other participating securities based on their participating rights. A net loss is not allocated to participating securities when the participating securities does not have contractual obligation to share losses. The Company’s preferred shares and restricted ordinary shares are participating securities. The preferred shares are participating securities as they participate in undistributed earnings on an as-if-converted basis and the restricted ordinary shares are participating securities as the holders of the restricted ordinary shares have a non-forfeitable right to receive dividends with all ordinary shares. Neither the preferred shares nor the restricted ordinary shares has a contractual obligation to fund or otherwise absorb the Group’s losses. Accordingly, any undistributed net income is allocated on a pro rata basis to the ordinary shares, preferred shares and restricted ordinary shares; whereas any undistributed net loss is allocated to ordinary shares only. Unvested restricted ordinary shares are excluded from the weighted average number of ordinary shares outstanding because the restricted ordinary shareholders must return the restricted ordinary shares to the Company, if the specified condition are not met. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the conversion of the preferred shares and shares issuable upon the exercise of warrants, and ordinary shares issuable upon the vest of restricted ordinary shares or exercise of outstanding share option (using the treasury stock method). Ordinary equivalent shares are calculated based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. |
Segment Reporting | (dd) Segment Reporting The Company’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. For the purpose of internal reporting and management’s operation review, the Company’s chief executive officer and management personnel do not segregate the Group’s business by product or service. All products and services are viewed as in one and the only operating segment. |
Statutory Reserves | (ee) Statutory Reserves In accordance with the PRC Company Laws, the Group’s PRC subsidiary, VIE and VIE’s subsidiaries must make appropriations from their after-tax profits as determined under the generally accepted accounting principles in the PRC (“PRC GAAP”) to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the PRC companies. Appropriation to the discretionary surplus fund is made at the discretion of the PRC companies. The statutory surplus fund and discretionary surplus fund are restricted for use. They may only be applied to offset losses or increase the registered capital of the respective companies. These reserves are not allowed to be transferred to the Company by way of cash dividends, loans or advances, nor can they be distributed except for liquidation. During the years ended December 31, 2019 and 2020, the profit appropriation to statutory surplus fund for the Group’s entities incorporated in the PRC was nil and RMB1.45 million (equivalent to US$0.22 million), respectively. No appropriation to discretionary surplus fund was made for any of the periods presented by the Group’s PRC subsidiary, VIE and VIE’s subsidiaries. |
Recent Accounting Pronouncements | (ff) Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases Financial Instruments—Credit Losses (Topic 326) Derivatives and Hedging (Topic 815), and Leases (Topic 842), Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Leases In June 2016, the FASB amended ASU 2016-13, Financial Instruments— Credit Losses (Topic 326) Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) Financial Instruments — Credit Losses In August 2018, the FASB issued ASU No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40) — Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). |
DESCRIPTION OF BUSINESS, ORGA_2
DESCRIPTION OF BUSINESS, ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DESCRIPTION OF BUSINESS, ORGANIZATION AND BASIS OF PRESENTATION | |
Schedule of consolidated assets and liabilities information of the Group's VIE and consolidated revenues, net loss and cash flow information | December 31, 2019 2020 RMB RMB Cash 120,450,112 58,443,775 Restricted cash 195,000 1,893,454 Short-term investments 2,501,024 — Accounts receivable - third parties, net* 203,270,317 221,613,966 Accounts receivable - related parties, net** 15,010,001 11,355,167 Contract assets 25,249,719 36,307,474 Amounts due from related parties 6,445,606 6,275,229 Prepayments and other current assets 97,632,903 125,859,963 Total current assets 470,754,682 461,749,028 Long-term investments 40,077,207 66,162,184 Property and equipment, net 10,261,327 11,163,961 Intangible assets, net 2,004,396 2,022,583 Deferred income tax assets 180,222 1,048,972 Other non-current assets 4,445,326 3,620,864 Total assets 527,723,160 545,767,592 Short-term borrowings 26,838,032 20,000,000 Accounts payable 135,194,396 122,079,582 Contract liabilities 108,950,803 95,964,616 Amounts due to related parties*** 595,457,305 631,164,373 Payables to an affiliate of a Series C Redeemable Convertible Preferred Shareholder — 230,086,500 Accrued expenses and other current liabilities 52,880,022 82,674,385 Total current liabilities 919,320,558 1,181,969,456 Long-term borrowings 96,190,363 — Total liabilities 1,015,510,921 1,181,969,456 * As of December 31, 2019, accounts receivable - third parties, net and prepayments and other current assets include accounts receivable - third parties and other receivables of Ronglian Yitong Technology that were pledged to secure bank borrowings amounting to RMB168,249,612 and RMB10,610,652, respectively. The secured bank loans matured on December 18, 2020 and accounts receivable - third parties and other receivables of Ronglian Yitong Technology were released from pledge on the same day (please refer to Note 10 for details). ** Accounts receivable-related parties, net includes accounts receivable, net due from the Company and its subsidiaries, which are eliminated upon consolidation, and accounts receivable, net due from a company that controls a shareholder of the Company of RMB12,501,982 and RMB9,447,148 as of December 31, 2019 and 2020. *** Amounts due to related parties include amounts due to the Company and its subsidiaries, which are eliminated upon consolidation, and amounts due to a company that controls a shareholder of the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020. Year ended December 31, 2018 2019 2020 RMB RMB RMB Revenues 498,345,481 640,145,645 738,931,945 Net loss (111,087,374) (145,457,499) (156,301,399) Net cash used in operating activities (4,590,430) (31,078,480) (20,062,451) Net cash provided by / (used in) investing activities 2,098,931 (15,547,418) (4,840,970) Net cash provided by / (used in) financing activities 6,229,297 113,044,600 (35,404,462) Net increase / (decrease) in cash and restricted cash 3,737,798 66,418,702 (60,307,883) Cash and restricted cash at the beginning of the year 50,488,612 54,226,410 120,645,112 Cash and restricted cash at the end of the year 54,226,410 120,645,112 60,337,229 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of cash on hand and cash at bank | December 31, 2019 2020 RMB RMB Cash on hand 118,613 719 Cash balances include deposits in: Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) 52,225,475 68,083,153 — Denominated in US$ 103,577,057 223,435,361 — Denominated in Hong Kong S.A.R. Dollar (“HKD”) 19,057 17,088 Total cash balances held at mainland PRC financial institutions 155,821,589 291,535,602 Financial institutions in Japan — Denominated in Japanese Yen 8,177,879 5,028,888 Total cash balances held at Japan financial institutions 8,177,879 5,028,888 Total cash balances held at financial institutions 163,999,468 296,564,490 Total cash balances 164,118,081 296,565,209 |
Schedule of term deposits maintained at banks | December 31, 2019 2020 RMB RMB US$ denominated bank deposits with financial institutions in the PRC 69,762,000 160,349,418 |
Schedule of estimated useful lives of property and equipment | Computer and office equipment 3 Furniture and fixtures 3 Motor vehicles 5 years Leasehold improvements The shorter of lease terms and estimated useful lives Software 5 |
CASH AND RESTRICTED CASH (Table
CASH AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CASH AND RESTRICTED CASH | |
Schedule of reconciliation of cash and restricted cash | December 31, 2019 2020 RMB RMB Cash 164,118,081 296,565,209 Restricted cash 195,000 1,893,454 Total cash and restricted cash shown in the consolidated statements of cash flows 164,313,081 298,458,663 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SHORT TERM INVESTMENTS | |
Schedule of short-term investments | December 31, 2019 2020 RMB RMB Aggregate cost basis 2,500,000 — Gross unrealized holding gain 1,024 — Aggregate fair value 2,501,024 — |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE, NET | |
Summary of accounts receivables, net | December 31, 2019 2020 RMB RMB Accounts receivable - third parties 228,332,843 266,496,793 Allowance for doubtful accounts - third parties (21,703,425) (37,604,131) Accounts receivable - third parties, net 206,629,418 228,892,662 Accounts receivable - a related party 13,159,981 9,944,366 Allowance for doubtful accounts - a related party (657,999) (497,218) Accounts receivable - a related party, net 12,501,982 9,447,148 |
Summary of movement of the allowance for doubtful accounts including both account receivables due from third parties and related parties | Year ended December 31, Allowance for doubtful accounts - third parties 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year 19,048,819 18,218,164 21,703,425 Additions charged to (reversal of) bad debt expense (830,655) 8,071,880 15,900,706 Write‑off — (4,586,619) — Balance at the end of the year 18,218,164 21,703,425 37,604,131 Year ended December 31, Allowance for doubtful accounts - a related party 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year — 1,033,769 657,999 Additions charged to (reversal of) bad debt expense 1,033,769 (375,770) (160,781) Balance at the end of the year 1,033,769 657,999 497,218 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of prepayments and other current assets | December 31, 2019 2020 RMB RMB Advance to suppliers 78,609,793 108,082,414 Deposits 6,378,261 10,405,023 Staff advances 13,776,145 6,295,894 Deductible input VAT 12,056,458 11,692,900 Receivables from third party payment platforms 2,418,033 2,295,382 Others 536,959 485,626 Prepayments and Other Current Assets 113,775,649 139,257,239 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LONG TERM INVESTMENTS | |
Schedule of long-term investments | December 31, 2019 2020 RMB RMB Available ‑ for ‑ sale debt securities Beijing Chenfeng Network Technology Co., Ltd. 2,500,000 11,800,000 Total available ‑ for ‑ sale debt securities 2,500,000 11,800,000 Equity method investments Beijing Lianxinzhihui Technology Co., Ltd. 3,788,867 3,751,676 Shenzhen City Yunjitong Technology Co., Ltd. 7,383,678 7,383,678 Beijing Jingu Shitong Technology Co., Ltd — 14,210,508 Shenyang Yunrongxin Technology Co., Ltd 2,000,000 2,000,000 Total equity method investments 13,172,545 27,345,862 Less: impairment of equity method investments (9,383,678) (9,383,678) Total equity method investments, net 3,788,867 17,962,184 Other equity investments Shanghai Yuhuan Information System Co., Ltd. 25,600,000 25,600,000 Beijing Hujingtiaoyue Technology Co., Ltd. 5,000,000 5,000,000 Hangzhou Paileyun Technology Co., Ltd. 3,188,340 5,800,000 Sichuan Taojinniwo Information Technology Co., Ltd. 6,657,838 6,657,838 Beijing Hanyuhaikuo Software Technology Co., Ltd. 5,000,000 5,000,000 Total other equity investments 45,446,178 48,057,838 Less: impairment of other equity investments (11,657,838) (11,657,838) Total other equity investments, net 33,788,340 36,400,000 Total long ‑ term investments 40,077,207 66,162,184 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment | December 31, 2019 2020 RMB RMB Computer and office equipment 23,913,290 26,162,529 Furniture and fixtures 1,540,476 2,511,918 Motor vehicles 653,303 263,196 Leasehold improvement 369,247 566,507 Software 10,627,169 12,872,664 Property and Equipment 37,103,485 42,376,814 Less: Accumulated depreciation (19,199,417) (25,960,658) Property and Equipment, net 17,904,068 16,416,156 |
Schedule of depreciation expenses on property and equipment | Year ended December 31, 2018 2019 2020 RMB RMB RMB Cost of revenues 818,112 1,310,170 1,641,973 Research and development expenses 777,841 1,304,893 1,160,673 Selling and marketing expenses 1,985,829 2,335,885 2,119,406 General and administrative expenses 1,992,657 1,201,531 1,955,735 Total depreciation expenses 5,574,439 6,152,479 6,877,787 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets, net | December 31, 2019 Weighted Gross Net average carrying Accumulated carrying amortization amount amortization amount Period RMB RMB RMB Years Software copyrights 4,302,000 (3,264,250) 1,037,750 6.8 Telecommunication business operation licenses 5,744,940 (3,339,512) 2,405,428 4.0 Total 10,046,940 (6,603,762) 3,443,178 December 31, 2020 Weighted Gross Net average carrying Accumulated carrying amortization amount amortization amount period RMB RMB RMB Years Software copyrights 2,372,000 (1,630,750) 741,250 8.0 Telecommunication business operation licenses 5,906,192 (4,624,859) 1,281,333 4.0 Total 8,278,192 (6,255,609) 2,022,583 |
Schedule of estimated amortization expense | The estimated amortization expense for the next five years is as follows: RMB 2021 1,039,747 2022 645,792 2023 288,422 2024 45,069 2025 3,553 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
BORROWINGS | |
Schedule of borrowings | December 31, 2019 2020 RMB RMB Secured bank loans 26,838,032 — Unsecured bank loans — 20,000,000 Short ‑ term borrowings 26,838,032 20,000,000 Longs-term borrowings 96,190,363 — |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | December 31, 2019 2020 RMB RMB Accrued payroll and social insurance 45,688,185 51,919,137 Taxes payable 17,011,290 29,028,359 Accrued issuance costs for Series F financing — 5,548,788 Deposits 2,235,945 1,144,769 Staff reimbursements 1,841,772 2,437,562 Other payables 1,991,306 3,888,841 Accrued expenses and other current liabilities 68,768,498 93,967,456 |
WARRANT LIABILITIES (Tables)
WARRANT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Series C Redeemable Convertible Preferred Shares | China Equities HK Limited | |
Class of Warrant or Right [Line Items] | |
Schedule of fair value of the warrant liability assumptions | December 31, 2019 2020 Risk‑free rate of return 2.60% 1.15% Volatility 45% 45% Expected dividend yield 0% 0% Fair value of underlying Series C Redeemable Convertible Preferred Shares US$1.97 US$5.42 Expected term 3.7 years 2.7 years |
Series E Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | |
Class of Warrant or Right [Line Items] | |
Schedule of fair value of the warrant liability assumptions | December 31, 2019 Risk‑free rate of return 2.58% Volatility 55% Expected dividend yield 0% Fair value of underlying Series E Redeemable Convertible Preferred Shares US$2.49 Expected term 1.2 years |
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | |
Class of Warrant or Right [Line Items] | |
Schedule of fair value of the warrant liability assumptions | December 31, 2020 Risk‑free rate of return 1.07% Volatility 30% Expected dividend yield 0% Fair value of underlying Series F Redeemable Convertible Preferred Shares US$5.50 Expected term 0.36 years |
REDEEMABLE CONVERTIBLE PREFER_2
REDEEMABLE CONVERTIBLE PREFERRED SHARES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REDEEMABLE CONVERTIBLE PREFERRED SHARES | |
Schedule of redeemable convertible preferred shares activities | The Company’s redeemable convertible preferred shares activities consist of the following: RMB Series A Series B Series C Series D Series E Series F Total Balance as of January 1, 2018 128,754,021 153,434,897 473,035,494 — — — 755,224,412 Issuance for cash — — — 160,975,360 — — 160,975,360 Issuance costs paid — — — (1,793,926) — — (1,793,926) Modifications — — 4,654,516 — — — 4,654,516 Accretion of Redeemable Convertible Preferred Shares 21,341,595 22,457,999 45,290,526 13,122,517 — — 102,212,637 Foreign currency translation adjustment 7,275,547 8,559,710 25,672,740 15,143,355 — — 56,651,352 Balance as of December 31, 2018 157,371,163 184,452,606 548,653,276 187,447,306 — — 1,077,924,351 Issuance for cash — — — — 226,646,200 — 226,646,200 Issuance costs — — — — (12,427,087) — (12,427,087) Inducement cost* — — — — (4,768,612) — (4,768,612) Modifications — — 6,716,297 5,562,201 — — 12,278,498 Accretion of Redeemable Convertible Preferred Shares 23,148,378 24,359,297 48,739,310 9,510,712 22,995,748 — 128,753,445 Foreign currency translation adjustment 2,851,785 3,311,309 9,657,984 3,256,021 (3,342,472) — 15,734,627 Balance as of December 31, 2019 183,371,326 212,123,212 613,766,867 205,776,240 229,103,777 — 1,444,141,422 Exercise of Series E warrants — — — — 122,642,269 — 122,642,269 Issuance for cash — — — — — 598,661,700 598,661,700 Issuance costs — — — — — (11,830,318) (11,830,318) Deemed dividends — — — — 12,070,034 — 12,070,034 Accretion of Redeemable Convertible Preferred Shares 504,054,460 515,537,848 1,062,760,468 266,737,805 396,239,268 582,250,109 3,327,579,958 Foreign currency translation adjustment (39,098,264) (41,578,748) (97,129,867) (27,724,670) (40,011,798) (35,717,457) (281,260,804) Balance as of December 31, 2020 648,327,522 686,082,312 1,579,397,468 444,789,375 720,043,550 1,133,364,034 5,212,004,261 Subscription receivables — — (230,086,500) — (106,092,000) — (336,178,500) Carrying amount as of December 31, 2020 648,327,522 686,082,312 1,349,310,968 444,789,375 613,951,550 1,133,364,034 4,875,825,761 * On August 28, 2019, the Series E investors requested to restrict one of the founders, Mr. Li’s ordinary shares for a period of three years, which was a protective clause and was an inducement made to facilitate the investment in the Series E Preferred Shares on behalf of the Company. Therefore, the fair value of the restricted shares recognized as additional paid-in capital and reflected as a reduction of the proceeds allocated to the Series E Preferred Shares. The fair value of restricted shares was estimated by management with the assistance of valuer and involves significant assumptions that might not be observable in the market, and a number of complex and subjective variables, including discount rate, risk-free interest rate and subjective judgments regarding the Company’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants are made. As of August 28, 2019, the fair value of the restricted shares was determined to be RMB4,768,612 based on the Company’s ordinary share price on August 28, 2019. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restricted ordinary shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted ordinary shares held by the Company's employees | A summary of the Company’s restricted ordinary shares held by the Company’s employees for the years ended December 31, 2018, 2019 and 2020 is presented below: Weighted Number of average grant shares date fair value Unvested as of January 1, 2018 3,964,184 0.38 Vested (3,964,184) 0.38 Unvested as of December 31, 2018 — — Granted 8,154,893 1.32 Unvested as of December 31, 2019 8,154,893 1.32 Granted 3,706,745 1.31 Vested (6,425,043) 1.31 Unvested as of December 31, 2020 5,436,595 1.32 |
Schedule of compensation expenses recognized | Total compensation expenses recognized for restricted ordinary shares for the years ended December 31, 2018, 2019 and 2020 were allocated to the following expense items: Year ended December 31, 2018 2019 2020 RMB RMB RMB General and administrative expenses 1,404,438 15,126,755 70,618,377 Total restricted ordinary shares compensation expenses 1,404,438 15,126,755 70,618,377 |
Share options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of compensation expenses recognized | Year ended December 31, 2018 2019 2020 RMB RMB RMB Cost of revenues 142,416 598,204 485,987 Research and development expenses 1,474,597 305,554 1,396,422 Selling and marketing expenses 163,658 4,901,300 998,779 General and administrative expenses 3,607,570 6,523,090 15,276,678 Total share option compensation expenses 5,388,241 12,328,148 18,157,866 |
Schedule of share options activities | Weighted Weighted average remaining Number of exercise contractual Aggregate shares price years intrinsic value US$ US$ Outstanding as of January 1, 2018 17,285,084 0.21 Granted 5,412,917 0.35 Forfeited (748,000) 0.25 Outstanding as of December 31, 2018 21,950,001 0.24 Granted 2,750,000 0.26 Forfeited (3,448,846) 0.27 Outstanding as of December 31, 2019 21,251,155 0.24 Granted 7,700,228 0.30 Forfeited (3,626,948) 0.27 Outstanding as of December 31, 2020 25,324,435 0.25 Vested and expected to vest as of December 31, 2020 25,324,435 0.25 6.60 17,774,121 Exercisable as of December 31, 2020 13,714,193 0.21 4.63 9,130,955 |
Schedule of fair value assumptions | The fair values of the options granted are estimated on the dates of grant using the binomial option pricing model with the following assumptions used: Year ended December 31, Grant dates: 2018 2019 2020 Risk‑free rate of return 3.7%-4.0% 2.50%‑2.90% 1.64%-1.91% Volatility 45-50% 45% 45% Expected dividend yield 0% 0% 0% Exercise multiple 2.20 2.20 2.20 Fair value of underlying ordinary share US$1.14- US$1.19 US$1.19 ‑ US$1.36 US$1.31 ‑ US$5.32 Expiration terms 10 years 10 years 10 years |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENT | |
Tables of the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis | December 31, 2019 Total RMB Level 1 Level 2 Level 3 Fair Value Assets Short ‑ term investments Short‑term investments (Note 4) — 2,501,024 — 2,501,024 Long ‑ term investments Available‑for‑sale debt securities (Note 7) — — 2,500,000 2,500,000 Other equity investments (Note 7) — — 33,788,340 33,788,340 Total — — 36,288,340 36,288,340 Liabilities Warrant liabilities (Note 12) — — 19,631,027 19,631,027 December 31, 2020 Total RMB Level 1 Level 2 Level 3 Fair Value Assets Long ‑ term investments Available‑for‑sale debt securities (Note 7) — — 11,800,000 11,800,000 Other equity investments (Note 7) — — 36,400,000 36,400,000 Total — — 48,200,000 48,200,000 Liabilities Warrant liabilities (Note 12) — — 221,742,202 221,742,202 |
Table of the reconciliation from the opening balances to the closing balances for recurring fair value measurements of the fair value hierarchy | Year ended December 31, 2018 Gain or Losses Foreign currency translation adjustment Included in included in Included other other January 1, in comprehensive comprehensive December 31, RMB 2018 Purchase/Issue Sell earnings loss loss 2018 Assets Short ‑ term investments Short‑term investments (Note 4) 11,772,573 49,000,000 58,384,622 384,622 221,643 — 2,994,216 Long ‑ term investments Other equity investments (Note 7) 12,000,000 — — 17,700,000 — — 29,700,000 Liabilities Warrant liabilities (Note 12) 4,351,777 — — 450,083 — 235,729 5,037,589 Year ended December 31, 2019 Gain or Losses Foreign currency translation adjustment Included in included in other other January 1, Purchase/ Included in comprehensive comprehensive December 31, RMB 2019 Issue Sell earnings loss loss 2019 Assets Short ‑ term investments Short‑term investments (Note 4) 2,994,216 34,000,000 34,614,192 114,192 6,808 — 2,501,024 Long ‑ term investments Available‑for‑sale debt securities (Note 7) — 2,500,000 — — — — 2,500,000 Other equity investments (Note 7) 29,700,000 3,188,340 — 900,000 — — 33,788,340 Total 29,700,000 5,688,340 — 900,000 — — 36,288,340 Liabilities Warrant liabilities (Note 12) 5,037,589 14,852,880 — (137,969) — (121,473) 19,631,027 Year ended December 31, 2020 Gain or Losses Foreign currency translation adjustment Included in included in other other January 1, Purchase/ Included in comprehensive comprehensive December 31, RMB 2020 Issue Sell / Exercise earnings loss loss 2020 Assets Short ‑ term investments Short‑term investments (Note 4) 2,501,024 — 2,512,192 12,192 (1,024) — — Long ‑ term investments Available‑for‑sale debt securities (Note 7) 2,500,000 — — — 9,300,000 — 11,800,000 Other equity investments (Note 7) 33,788,340 457,326 — 2,154,334 — — 36,400,000 Total 36,288,340 457,326 — 2,154,334 9,300,000 — 48,200,000 Liabilities Warrant liabilities (Note 12) 19,631,027 — 16,549,825 221,462,056 — (2,801,056) 221,742,202 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAX | |
Schedule of current and deferred portion of income tax (benefit)/expense | Year ended December 31, 2018 2019 2020 RMB RMB RMB The Cayman Islands* (8,508,744) (27,173,956) (331,728,653) Hong Kong S.A.R* (100,880) (21,374) (1,270,314) Japan* (1,843,749) 4,080,678 6,054,598 The PRC, excluding Hong Kong S.A.R. (142,339,777) (159,727,099) (171,271,335) Total (152,793,150) (182,841,751) (498,215,704) |
Schedule of current and deferred portion of income tax (benefit)/expense | Income tax expense recognized in the consolidated statements of comprehensive loss consists of the following: Year ended December 31, 2018 2019 2020 RMB RMB RMB Current income tax expense 973,035 307,850 2,492,711 Deferred income tax expense (benefit) 1,699,063 344,760 (868,750) Total income tax expense 2,672,098 652,610 1,623,961 |
Schedule of reconciliation of the differences between the income tax benefit computed based on the PRC statutory income tax rate and the Group's income tax expense | Year ended December 31, 2018 2019 2020 RMB RMB RMB Computed expected income tax benefit (38,198,288) (45,710,438) (124,553,926) Non-deductible expenses / taxable deemed income Share-based compensation 1,698,170 6,863,726 29,266,619 Accretion of interest expenses on unsecured loans — 1,001,827 3,179,383 Non-deductible entertainment 1,210,158 968,832 984,405 Change in fair value of warrant liabilities 112,521 (34,492) 55,365,514 Taxable deemed interest income from inter-company interest-free loans 176,832 989,741 2,786,532 Others 745,488 1,629,482 3,343,107 Entities not subject to income tax 884,692 (1,217,586) (3,270,423) Research and development expenses bonus deduction (12,090,177) (24,851,250) (21,890,430) HNTE tax incentives (744,674) (266,961) — Over provision in respect of prior years (1,582,864) (166,030) (74,125) Others 104,153 462,947 652,357 Changes in valuation allowance 50,356,087 60,982,812 55,834,948 Actual income tax expense 2,672,098 652,610 1,623,961 |
Schedule of deferred income tax assets | December 31, 2018 2019 2020 RMB RMB RMB Net operating loss carry forwards 111,643,190 161,427,285 228,979,794 Uninvoiced expenditures 14,587,617 23,400,140 6,204,204 Accounts receivable and contract assets allowance 4,877,088 6,966,170 10,363,565 Long term investments impairment 5,260,379 5,260,379 5,260,379 Goodwill impairment 1,416,835 1,416,835 1,416,835 Share of losses of equity method investments — 140,281 751,836 Others 157,237 28,279 1,356,575 Less: Valuation allowance (132,566,897) (193,549,709) (244,186,061) Total deferred income tax assets, net 5,375,449 5,089,660 10,147,127 Intangible assets (425,467) (259,438) (185,313) Equity method investment on the gain from the disposal of a subsidiary — — (3,724,258) Change in fair value of long-term investment (4,425,000) (4,650,000) (5,188,584) Total gross deferred income tax liabilities (4,850,467) (4,909,438) (9,098,155) Net deferred income tax assets 524,982 180,222 1,048,972 |
Schedule of tax loss carry forwards for PRC income tax purpose | Year ending December 31, RMB 2021 23,070,552 2022 127,827,248 2023 20,759,125 2024 33,794,384 2025 104,952,488 Thereafter 607,901,070 Total 918,304,867 |
Schedule of changes in valuation allowance | Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year (82,210,810) (132,566,897) (193,549,709) Additions (50,356,087) (60,982,812) (55,834,948) Decrease upon disposal of a subsidiary — — 5,198,596 Balance at the end of the year (132,566,897) (193,549,709) (244,186,061) |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
NET LOSS PER SHARE | |
Schedule of basic and diluted net loss per ordinary share | Year ended December 31, 2018 2019 2020 RMB RMB RMB Numerator: Net loss (155,465,248) (183,494,361) (499,839,665) Accretion and modifications of Redeemable Convertible Preferred Shares (106,867,153) (141,031,943) (3,327,579,958) Deemed dividends to Series E Redeemable Convertible Preferred Shareholders — — (12,070,034) Numerator for basic and diluted net loss per ordinary share calculation (262,332,401) (324,526,304) (3,839,489,657) Denominator: Weighted average number of pre‑offering Class A and pre‑offering Class B ordinary shares 91,083,938 89,567,463 85,103,964 Denominator for basic and diluted net loss per ordinary share calculation 91,083,938 89,567,463 85,103,964 Net loss per ordinary share attributable to pre ‑ offering Class A and pre ‑ offering Class B ordinary shareholders — Basic and diluted (2.88) (3.62) (45.12) |
Schedule of potentially dilute basic net loss per ordinary share that were not included in the computation of diluted net loss per ordinary share | Year ended December 31, 2018 2019 2020 Share options 21,950,001 21,251,155 25,324,435 Restricted ordinary shares 1,700,000 9,854,893 7,136,595 Redeemable Convertible Preferred Shares 95,381,376 108,421,528 147,100,329 Warrants 661,376 6,773,946 12,461,061 |
REVENUE INFORMATION (Tables)
REVENUE INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE INFORMATION | |
Schedule of major products/services lines, timing of revenue recognition and primary geographical markets (based on the location of customers) | Year ended December 31, Major products/services lines 2018 2019 2020 RMB RMB RMB CPaaS — Text messaging 167,859,282 234,745,048 265,182,655 — Voice calls 60,285,356 67,128,537 71,991,638 — Others (Note1) 27,060,127 43,383,515 62,919,144 Cloud‑based CC 129,198,999 173,593,018 245,135,106 Cloud‑based UC&C 111,931,266 123,165,257 118,310,137 Other services 5,153,637 8,266,792 4,149,440 Revenues 501,488,667 650,282,167 767,688,120 Year ended December 31, Timing of revenue recognition 2018 2019 2020 RMB RMB RMB Point in time 353,009,329 474,920,173 597,627,257 Over time 148,479,338 175,361,994 170,060,863 Revenues 501,488,667 650,282,167 767,688,120 Year ended Primary geographical markets (based on the location of customers) December 31, 2018 2019 2020 RMB RMB RMB The PRC 498,615,542 640,290,226 739,975,367 Japan 2,873,125 9,991,941 27,712,753 Revenues 501,488,667 650,282,167 767,688,120 |
Schedule of contract assets and contract liabilities | December 31, 2019 2020 RMB RMB Contract assets 25,249,719 36,307,474 Contract liabilities 111,953,381 95,992,689 Year ended December 31, 2018 2019 2020 RMB RMB RMB Gross amount at the beginning of the year 20,021,820 18,985,847 26,781,689 Increases due to revenue recognized during the year 53,536,894 62,994,291 53,180,927 Transfers to accounts receivable during the year (54,572,867) (55,198,449) (38,430,939) Gross amount at the end of the year 18,985,847 26,781,689 41,531,677 Allowance for contract assets (949,292) (1,531,970) (5,224,203) Contract assets, net 18,036,555 25,249,719 36,307,474 Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year 1,001,091 949,292 1,531,970 Additions charged to (reversal of) bad debt expense (51,799) 582,678 3,692,233 Balance at the end of the year 949,292 1,531,970 5,224,203 Year ended December 31, 2018 2019 2020 RMB RMB RMB Balance at the beginning of the year 74,361,332 98,417,522 111,953,381 Revenue recognized that was included in the contract liabilities balance at the beginning of the year (67,051,465) (84,099,618) (81,807,185) Increase due to cash received, excluding amount recognized as revenue during the year 91,107,655 97,635,477 65,846,493 Balance at the end of the year 98,417,522 111,953,381 95,992,689 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
Summary of future minimum lease commitments, all under office and facilities non cancelable operating lease agreements | As of December 31, 2020, future minimum lease commitments, all under office and facilities non-cancelable operating lease agreements, were as follows: Year ended December 31, RMB 2021 22,225,857 2022 18,649,509 2023 4,551,612 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related parties and related parties transaction | (i) Name of Related Parties Relationship with the Company Beijing Puhui Sizhong Technology Limited Company A company controlled by Mr. Changxun Sun Changxun Sun, Zhiqiang Xu, Muchao Deng Three management employees Beijing Jingu Shitong Technology Co., Ltd An equity investee Hi Sun Technology (China) Limited A company that controls Main Access Limited, an entity that is a shareholder of the Company (ii) Year ended December 31, Note 2018 2019 2020 Interest free loans provided to related parties: -Three management employees (a) 4,000,000 — 2,550,000 -Beijing Jingu Shitong Technology Co., Ltd (a) — — 1,400,000 Interest free loans collected from related parties: -Three management employees (a) 3,180,000 310,000 4,160,000 Cloud-based UC&C services provided to a related party: -Hi Sun Technology (China) Limited (b) 38,524,686 38,280,256 25,681,928 Sub-lease income from an equity investee: -Beijing Jingu Shitong Technology Co., Ltd (c) — — 316,981 Project development services purchased from a related party: -Hi Sun Technology (China) Limited (d) 1,287,644 7,901,958 386,321 Research and development services purchased from a related party: -Hi Sun Technology (China) Limited (d) — — 6,006,664 Rental expenses paid for a related party: -Beijing Puhui Sizhong Technology Limited Company (e) 130,000 100,000 150,000 (iii) December 31, Note 2019 2020 Accounts receivable - a related party, net: -Hi Sun Technology (China) Limited (b) 12,501,982 9,447,148 Amounts due from related parties: -Three management employees (a) 2,510,000 900,000 -Beijing Jingu Shitong Technology Co., Ltd (a) (c) — 1,439,623 -Hi Sun Technology (China) Limited (b) 3,935,606 3,935,606 Total amounts due from related parties 6,445,606 6,275,229 Amounts due to a related party: -Hi Sun Technology (China) Limited (d) 3,180,095 2,813,041 |
PARENT ONLY FINANCIAL INFORMA_2
PARENT ONLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PARENT ONLY FINANCIAL INFORMATION | |
Schedule of Condensed Balance Sheets | December 31, 2019 2020 RMB RMB Assets Current assets Cash 355,008 1,144,361 Term deposits — 160,349,418 Other current assets 17,409 358,925 Total current assets 372,417 161,852,704 Non ‑ current assets: Investments in and amounts due from subsidiaries and consolidated VIE and VIE’s subsidiaries 227,116,226 465,440,853 Total non ‑ current assets 227,116,226 465,440,853 Total assets 227,488,643 627,293,557 Liabilities Current liabilities Amounts due to VIE — 230,086,500 Accrued expenses and other current liabilities 707 5,549,245 Warrant liabilities — 202,271,900 Total current liabilities 707 437,907,645 Non ‑ current liabilities Non‑current warrant liabilities 19,631,027 19,470,302 Total non ‑ current liabilities 19,631,027 19,470,302 Total liabilities 19,631,734 457,377,947 Mezzanine equity Series A Redeemable Convertible Preferred Shares 183,371,326 648,327,522 Series B Redeemable Convertible Preferred Shares 212,123,212 686,082,312 Series C Redeemable Convertible Preferred Shares 613,766,867 1,579,397,468 Series D Redeemable Convertible Preferred Shares 205,776,240 444,789,375 Series E Redeemable Convertible Preferred Shares 229,103,777 720,043,550 Series F Redeemable Convertible Preferred Shares — 1,133,364,034 Subscription receivables for Series C and Series E Redeemable Convertible Preferred Shares — (336,178,500) Total mezzanine equity 1,444,141,422 4,875,825,761 Shareholders’ deficit: Pre‑offering Class A ordinary shares 23,519 28,592 Pre‑offering Class B ordinary shares 33,348 33,348 Subscription receivables (23,219,901) — Accumulated other comprehensive income (loss) (72,548,649) 208,672,218 Accumulated deficit (1,140,572,830) (4,914,644,309) Total shareholders’ deficit (1,236,284,513) (4,705,910,151) Total liabilities, mezzanine equity and shareholders’ deficit 227,488,643 627,293,557 |
Schedule of Condensed Statements of Comprehensive Loss | Year ended December 31, 2018 2019 2020 RMB RMB RMB Total operating expenses (7,618,417) (38,552,132) (108,331,537) Change in fair value of warrant liabilities (450,083) 137,969 (221,462,056) Share of losses from subsidiaries and consolidated VIE and VIE’s subsidiaries (147,396,748) (145,080,198) (170,046,072) Loss before income taxes (155,465,248) (183,494,361) (499,839,665) Income tax expense — — — Net loss (155,465,248) (183,494,361) (499,839,665) Accretion and modification of Redeemable Convertible Preferred Shares (106,867,153) (141,031,943) (3,327,579,958) Deemed dividends to Series E Redeemable Convertible Preferred Shareholders — — (12,070,034) Net loss attributable to ordinary shareholders (262,332,401) (324,526,304) (3,839,489,657) |
Schedule of Condensed Statements of Cash Flows | Year ended December 31, 2018 2019 2020 RMB RMB RMB Net cash used in operating activities (268,540) (3,038,499) (1,221,553) Net cash used in investing activities (154,188,532) (218,538,384) (597,733,655) Net cash provided by financing activities 159,782,892 215,232,018 601,198,643 Effect of foreign currency exchange rate changes on cash 550,960 (10,038) (1,454,082) Net (decrease) increase in cash 5,876,780 (6,354,903) 789,353 Cash at the beginning of the year 833,131 6,709,911 355,008 Cash at the end of the year 6,709,911 355,008 1,144,361 |
DESCRIPTION OF BUSINESS, ORGA_3
DESCRIPTION OF BUSINESS, ORGANIZATION AND BASIS OF PRESENTATION (Details) - Ronglian Yitong - CNY (¥) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Dec. 31, 2020 | |
Exclusive Business Cooperation Agreement | ||
Variable Interest Entity [Line Items] | ||
Percentage of service fee on net profits | 100.00% | |
Equity Pledge Agreement | ||
Variable Interest Entity [Line Items] | ||
Percentage of equity interest pledged | 1.55% | |
Exclusive Option Agreement | ||
Variable Interest Entity [Line Items] | ||
Minimum value for sale of assets | ¥ 500,000 |
DESCRIPTION OF BUSINESS, ORGA_4
DESCRIPTION OF BUSINESS, ORGANIZATION AND BASIS OF PRESENTATION - Consolidate (Details) | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2017CNY (¥) | |
Variable Interest Entity [Line Items] | ||||||
Cash | ¥ 719 | ¥ 118,613 | ||||
Restricted cash | 1,893,454 | 195,000 | $ 290,185 | |||
Short-term investments | 2,501,024 | |||||
Accounts receivable - third parties, net | 228,892,662 | 206,629,418 | 35,079,335 | |||
Accounts receivable - a related party, net | 9,447,148 | 12,501,982 | 1,447,839 | |||
Contract assets | 36,307,474 | 25,249,719 | ¥ 18,036,555 | 5,564,364 | ||
Amounts due from related parties | 6,275,229 | 6,445,606 | 961,721 | |||
Prepayments and other current assets | 139,257,239 | 113,775,649 | 21,342,106 | |||
Total current assets | 878,987,833 | 601,178,479 | 134,710,780 | |||
Long-term investments | 66,162,184 | 40,077,207 | 10,139,798 | |||
Property and equipment, net | 16,416,156 | 17,904,068 | 2,515,886 | |||
Intangible assets, net | 2,022,583 | 3,443,178 | 309,974 | |||
Deferred income tax assets | 1,048,972 | 180,222 | 160,762 | |||
Other noncurrent assets | 3,824,513 | 4,648,976 | 586,132 | |||
Total assets | 968,462,241 | 667,432,130 | 148,423,332 | |||
Short-term borrowings, including current portion of long-term borrowings | 20,000,000 | 26,838,032 | 3,065,134 | |||
Accounts payable | 131,599,482 | 148,828,041 | 20,168,503 | |||
Contract liabilities | 95,992,689 | 111,953,381 | 98,417,522 | 14,711,523 | ¥ 74,361,332 | |
Amounts due to related parties | 2,813,041 | 3,180,095 | 431,117 | |||
Accrued expenses and other current liabilities | 93,967,456 | 68,768,498 | 14,401,143 | |||
Total current liabilities | 776,731,068 | 359,568,047 | 119,039,244 | |||
Long-term borrowings | 96,190,363 | |||||
Total liabilities | 796,201,370 | 475,389,437 | $ 122,023,198 | |||
Accounts receivables, - third parties, net | 9,447,148 | 12,501,982 | ||||
Revenues | 767,688,120 | $ 117,653,352 | 650,282,167 | 501,488,667 | ||
Net loss | (3,839,489,657) | (588,427,535) | (324,526,304) | (262,332,401) | ||
Net cash used in operating activities | (224,118,705) | (34,347,694) | (166,384,556) | (160,617,731) | ||
Net cash provided by / (used in) investing activities | (95,707,473) | (14,667,811) | (84,502,265) | 2,047,948 | ||
Net cash provided by / (used in) financing activities | 457,641,336 | 70,136,603 | 325,409,445 | 165,410,731 | ||
Net increase / (decrease) in cash and restricted cash | 134,145,582 | 20,558,710 | 77,389,278 | 14,662,357 | ||
Cash and restricted cash at the beginning of the year | 164,313,081 | 25,182,081 | 86,923,803 | 72,261,446 | ||
Cash and restricted cash at the end of the year | 298,458,663 | $ 45,740,791 | 164,313,081 | 86,923,803 | ||
VIE | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash | 58,443,775 | 120,450,112 | ||||
Restricted cash | 1,893,454 | 195,000 | ||||
Short-term investments | 2,501,024 | |||||
Accounts receivable - third parties, net | 221,613,966 | 203,270,317 | ||||
Accounts receivable - a related party, net | 11,355,167 | 15,010,001 | ||||
Contract assets | 36,307,474 | 25,249,719 | ||||
Amounts due from related parties | 6,275,229 | 6,445,606 | ||||
Prepayments and other current assets | 125,859,963 | 97,632,903 | ||||
Total current assets | 461,749,028 | 470,754,682 | ||||
Long-term investments | 66,162,184 | 40,077,207 | ||||
Property and equipment, net | 11,163,961 | 10,261,327 | ||||
Intangible assets, net | 2,022,583 | 2,004,396 | ||||
Deferred income tax assets | 1,048,972 | 180,222 | ||||
Other noncurrent assets | 3,620,864 | 4,445,326 | ||||
Total assets | 545,767,592 | 527,723,160 | ||||
Short-term borrowings, including current portion of long-term borrowings | 20,000,000 | 26,838,032 | ||||
Accounts payable | 122,079,582 | 135,194,396 | ||||
Contract liabilities | 95,964,616 | 108,950,803 | ||||
Amounts due to related parties | 2,813,041 | 3,180,095 | ||||
Amounts due to VIE | 230,086,500 | |||||
Accrued expenses and other current liabilities | 82,674,385 | 52,880,022 | ||||
Total current liabilities | 1,181,969,456 | 919,320,558 | ||||
Long-term borrowings | 0 | 96,190,363 | ||||
Total liabilities | 1,181,969,456 | 1,015,510,921 | ||||
Revenues | 738,931,945 | 640,145,645 | 498,345,481 | |||
Net loss | (156,301,399) | (145,457,499) | (111,087,374) | |||
Net cash used in operating activities | (20,062,451) | (31,078,480) | (4,590,430) | |||
Net cash provided by / (used in) investing activities | (4,840,970) | (15,547,418) | 2,098,931 | |||
Net cash provided by / (used in) financing activities | (35,404,462) | 113,044,600 | 6,229,297 | |||
Net increase / (decrease) in cash and restricted cash | (60,307,883) | 66,418,702 | 3,737,798 | |||
Cash and restricted cash at the beginning of the year | 120,645,112 | 54,226,410 | 50,488,612 | |||
Cash and restricted cash at the end of the year | 60,337,229 | 120,645,112 | ¥ 54,226,410 | |||
Restricted cash pledged to secure bank borrowings | 1,893,454 | 195,000 | ||||
VIE | Asset pledged | ||||||
Variable Interest Entity [Line Items] | ||||||
Accounts receivables, - third parties, net | 9,447,148 | 12,501,982 | ||||
VIE | Short-term borrowings from SPD | Asset pledged | ||||||
Variable Interest Entity [Line Items] | ||||||
Accounts receivable pledged to secure bank borrowings | 168,249,612 | |||||
Other receivables pledged to secure bank borrowings | 10,610,652 | |||||
VIE | Consolidation, Eliminations [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Amounts due to related parties | 631,164,373 | 595,457,305 | ||||
Equity investor | ||||||
Variable Interest Entity [Line Items] | ||||||
Amounts due to related parties | 2,813,041 | 3,180,095 | ||||
Ronglian Yitong | Short-term borrowings from SPD | Asset pledged | ||||||
Variable Interest Entity [Line Items] | ||||||
Accounts receivable - third parties, net | ¥ 10,610,652 | 168,249,612 | ||||
Prepayments and other current assets | ¥ 10,610,652 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2020CNY (¥)$ / ¥ | Dec. 31, 2020USD ($)$ / ¥ | Dec. 31, 2019CNY (¥) |
Accounts receivable - a related party, net | ¥ 9,447,148 | $ 1,447,839 | ¥ 12,501,982 |
Accounts receivable - third parties, net | 228,892,662 | 35,079,335 | 206,629,418 |
Amounts due from related parties | 6,275,229 | 961,721 | 6,445,606 |
Amounts due to related parties | ¥ 2,813,041 | $ 431,117 | ¥ 3,180,095 |
Foreign Currency Translation [Abstract] | |||
Convenience translation rate | $ / ¥ | 6.5250 | 6.5250 | |
Reclassification from accounts receivable, net to accounts receivable - related party, net | |||
Accounts receivable - a related party, net | ¥ 12,500,000 | ||
Reclassification from accounts receivable, net to accounts receivable - third parties, net | |||
Accounts receivable - third parties, net | 206,600,000 | ||
Reclassification from prepayments and other current assets to amounts due from related parties | |||
Amounts due from related parties | 3,900,000 | ||
Reclassification from accounts payable to amounts due to related parties | |||
Amounts due to related parties | ¥ 3,200,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020JPY (¥) | Dec. 31, 2019CNY (¥) |
Cash and Cash Equivalents [Line Items] | ||||
Cash on hand | ¥ 719 | ¥ 118,613 | ||
Total cash balances held at financial institutions | 296,564,490 | 163,999,468 | ||
Total cash balances | 296,565,209 | $ 45,450,607 | 164,118,081 | |
Deposits insured | ¥ 13,402,156 | ¥ 8,665,785 | ||
Interest rate, term deposits | 1.00% | 1.00% | 1.00% | 2.40% |
Bank deposits with financial institution | ¥ 160,349,418 | $ 24,574,623 | ¥ 69,762,000 | |
The PRC | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash balances held at financial institutions | 291,535,602 | 155,821,589 | ||
Deposits insured | 500,000 | |||
The PRC | RMB | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash balances held at financial institutions | 68,083,153 | 52,225,475 | ||
The PRC | US$ | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash balances held at financial institutions | 223,435,361 | 103,577,057 | ||
Bank deposits with financial institution | 160,349,418 | 69,762,000 | ||
The PRC | HKD | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash balances held at financial institutions | 17,088 | 19,057 | ||
Japan | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash balances held at financial institutions | 5,028,888 | 8,177,879 | ||
Deposits insured | ¥ 10,000,000 | |||
Japan | Yen | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash balances held at financial institutions | ¥ 5,028,888 | ¥ 8,177,879 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long term Investments, Property and Equipment, net and Intangible Assets, net (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Impairment loss on debt securities | ¥ 0 | ¥ 0 | ¥ 0 |
Impairment of long-lived assets | ¥ 0 | ¥ 0 | ¥ 0 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of intangible assets, net | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of intangible assets, net | 8 years | ||
Computer and office equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment, net | 3 years | ||
Computer and office equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment, net | 5 years | ||
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment, net | 3 years | ||
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment, net | 5 years | ||
Motor vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment, net | 5 years | ||
Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment, net | 5 years | ||
Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of property and equipment, net | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Value Added Taxes, Revenue recognition, Selling and Marketing Expenses, Employee Benefits (Details) | 11 Months Ended | 12 Months Ended | 21 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2020CNY (¥)item | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Advertising expenses | ¥ 27,253,585 | ¥ 15,842,771 | ¥ 12,013,725 | ||
Employee social benefits | ¥ 43,023,105 | ¥ 66,161,467 | ¥ 60,765,557 | ||
CPaaS | |||||
Disaggregation of Revenue [Line Items] | |||||
VAT rate | 6.00% | 6.00% | |||
Number of Performance obligations | item | 2 | ||||
CPaaS | Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Length of service contracts | 3 months | ||||
CPaaS | Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Length of service contracts | 12 months | ||||
Communication devices | |||||
Disaggregation of Revenue [Line Items] | |||||
VAT rate | 16.00% | 13.00% | |||
Cloudbased CC | Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Length of service contracts | 3 months | ||||
Cloudbased CC | Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Length of service contracts | 12 months |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration and Risk, Statutory Reserves (Details) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2020CNY (¥)customer | Dec. 31, 2019CNY (¥)customer | Dec. 31, 2020CNY (¥)customer | Dec. 31, 2020USD ($)customer | |
Concentration Risk [Line Items] | ||||
Profit appropriation to statutory surplus fund | ¥ 1,450,000 | ¥ 0 | ¥ 1,450,000 | $ 220 |
Accounts Payable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
Number of suppliers | 0 | 0 | ||
Revenues | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
Number of customers | 0 | 0 | 0 | 0 |
Purchases | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
Number of suppliers | 0 | 0 | ||
Accounts receivables | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Number of customers | 0 | |||
Contract liabilities | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Number of customers | 0 | 0 | 0 | |
Prepayments and other current assets | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10.10% | 10.00% | ||
Number of suppliers | 1 | 0 |
CASH AND RESTRICTED CASH (Detai
CASH AND RESTRICTED CASH (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
CASH AND RESTRICTED CASH | ||||||
Cash | ¥ 296,565,209 | $ 45,450,607 | ¥ 164,118,081 | |||
Restricted cash | 1,893,454 | 290,185 | 195,000 | |||
Total cash and restricted cash shown in the consolidated statements of cash flows | ¥ 298,458,663 | $ 45,740,791 | ¥ 164,313,081 | $ 25,182,081 | ¥ 86,923,803 | ¥ 72,261,446 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
SHORT TERM INVESTMENTS | ||
Aggregate cost basis | ¥ 0 | ¥ 2,500,000 |
Gross unrealized holding gain | 0 | 1,024 |
Aggregate fair value | ¥ 0 | ¥ 2,501,024 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
ACCOUNTS RECEIVABLE, NET | |||||
Allowance for doubtful accounts | ¥ (37,604,131) | ¥ (21,703,425) | ¥ (18,218,164) | ¥ (19,048,819) | |
Accounts receivable - third parties | 266,496,793 | 228,332,843 | |||
Allowance for doubtful accounts - third parties | (37,604,131) | (21,703,425) | |||
Accounts receivable, - third parties, net | 228,892,662 | $ 35,079,335 | 206,629,418 | ||
Accounts receivable - a related party | 9,944,366 | 13,159,981 | |||
Allowance for doubtful accounts - a related party | (497,218) | (657,999) | ¥ (1,033,769) | ||
Accounts receivable - a related party, net | ¥ 9,447,148 | ¥ 12,501,982 |
ACCOUNTS RECEIVABLE, NET - Allo
ACCOUNTS RECEIVABLE, NET - Allowance for doubtful accounts including both account receivables due from third parties and related parties (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement of the allowance for doubtful accounts | |||
Balance at the beginning of the year | ¥ 21,703,425 | ¥ 18,218,164 | ¥ 19,048,819 |
Additions charged to (reversal of) bad debt expense | 15,900,706 | 8,071,880 | (830,655) |
Write-off | (4,586,619) | ||
Balance at the end of the year | 37,604,131 | 21,703,425 | 18,218,164 |
Balance at the beginning of the year | 657,999 | 1,033,769 | |
Additions charged to (reversal of) bad debt expense | (160,781) | (375,770) | 1,033,769 |
Balance at the end of the year | ¥ 497,218 | ¥ 657,999 | ¥ 1,033,769 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Advance to suppliers | ¥ 108,082,414 | ¥ 78,609,793 | |
Deposits | 10,405,023 | 6,378,261 | |
Staff advances | 6,295,894 | 13,776,145 | |
Deductible input VAT | 11,692,900 | 12,056,458 | |
Receivables from third party payment platforms | 2,295,382 | 2,418,033 | |
Others | 485,626 | 536,959 | |
Prepayments and Other Current Assets | ¥ 139,257,239 | $ 21,342,106 | ¥ 113,775,649 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Investment Holdings [Line Items] | |||
Total long-term investments | ¥ 66,162,184 | $ 10,139,798 | ¥ 40,077,207 |
Available-for-sale debt securities | |||
Investment Holdings [Line Items] | |||
Total long-term investments | 11,800,000 | 2,500,000 | |
Equity method investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 27,345,862 | 13,172,545 | |
Less: impairment of long-term investments | (9,383,678) | (9,383,678) | |
Total long-term investments | 17,962,184 | 3,788,867 | |
Other equity investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 48,057,838 | 45,446,178 | |
Less: impairment of long-term investments | (11,657,838) | (11,657,838) | |
Total long-term investments | 36,400,000 | 33,788,340 | |
Beijing Chenfeng Network Technology Co., Ltd. | Available-for-sale debt securities | |||
Investment Holdings [Line Items] | |||
Total long-term investments | 11,800,000 | 2,500,000 | |
Beijing Lianxinzhihui Technology Co., Ltd. | Equity method investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 3,751,676 | 3,788,867 | |
Shenzhen City Yunjitong Technology Co., Ltd. | Equity method investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 7,383,678 | 7,383,678 | |
Beijing Jingu shitong Technology Co., Ltd [Member] | Equity method investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 14,210,508 | ||
Shenyang Yunrongxin Technology Co., Ltd | Equity method investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 2,000,000 | 2,000,000 | |
Shanghai Yuhuan Information System Co., Ltd. | Other equity investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 25,600,000 | 25,600,000 | |
Beijing Hujingtiaoyue Technology Co., Ltd. | Other equity investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 5,000,000 | 5,000,000 | |
Hangzhou Paileyun Technology Co., Ltd. | Other equity investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 5,800,000 | 3,188,340 | |
Sichuan Taojinniwo Information Technology Co., Ltd. | Other equity investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | 6,657,838 | 6,657,838 | |
Beijing Hanyuhaikuo Software Technology Co., Ltd. | Other equity investments | |||
Investment Holdings [Line Items] | |||
Long-term investments before impairment | ¥ 5,000,000 | ¥ 5,000,000 |
LONG-TERM INVESTMENTS - Availab
LONG-TERM INVESTMENTS - Available-for-sale debt securities (Details) - CNY (¥) | Sep. 02, 2019 | Dec. 31, 2020 |
Beijing Chenfeng Network Technology Co., Ltd. | ||
Available-for-sale debt securities | ||
Unrealized gain, net of tax | ¥ 9,300,000 | |
Unrealized gain, income taxes | ¥ 0 | |
Ronglian Yitong | Beijing Chenfeng Network Technology Co., Ltd. | ||
Available-for-sale debt securities | ||
Equity interest obtained | 10.00% | |
Ronglian Yitong | Beijing Chenfeng Network Technology Co., Ltd. | ||
Available-for-sale debt securities | ||
Cash consideration | ¥ 2,500,000 |
LONG-TERM INVESTMENTS - Equity
LONG-TERM INVESTMENTS - Equity method investments (Details) | Mar. 23, 2020CNY (¥) | Sep. 30, 2017CNY (¥)director | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Equity method investments | |||||||
Share of losses of equity method investments | ¥ 2,446,221 | $ 374,900 | ¥ 14,592 | ¥ 546,530 | |||
Beijing Lianxinzhihui Technology Co., Ltd. | |||||||
Equity method investments | |||||||
Share of losses of equity method investments | 37,191 | ¥ 14,592 | ¥ 546,530 | ||||
Jingu | |||||||
Equity method investments | |||||||
Share of losses of equity method investments | ¥ 2,409,030 | ||||||
Ownership percentage before reduction | 60.00% | ||||||
Ownership percentage after reduction | 55.38% | ||||||
Minimum percentage of voting rights should be voted and agreed by shareholders | 0.66% | ||||||
Minimum percentage of voting rights which the article of association can be modified with the agreement by shareholders | 0.66% | ||||||
Gain from disposal of subsidiary | ¥ 14,897,034 | ||||||
Gain from remeasurement of the retained non-controlling investment | ¥ 13,871,309 | ||||||
Shenzhen City Yunjitong Technology Co., Ltd and Shenyang Yunrongxin Technology Co., Ltd | |||||||
Equity method investments | |||||||
Other than temporary loss for the investments recognized | ¥ 9,400,000 | ||||||
Ronglian Yitong | Beijing Lianxinzhihui Technology Co., Ltd. | |||||||
Equity method investments | |||||||
Cash consideration | ¥ 4,500,000 | ||||||
Number of directors, right to appoint | director | 1 | ||||||
Number of total directors | director | 3 | ||||||
Ronglian Yitong | Beijing Lianxinzhihui Technology Co., Ltd. | |||||||
Equity method investments | |||||||
Equity interest, equity method investment ( as a percent) | 16.00% | ||||||
Third-party investor | Jingu | |||||||
Equity method investments | |||||||
Equity interest, equity method investment ( as a percent) | 7.69% |
LONG-TERM INVESTMENTS - Oher eq
LONG-TERM INVESTMENTS - Oher equity investments (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020CNY (¥) | Aug. 31, 2019CNY (¥) | May 31, 2019CNY (¥)director | Jun. 30, 2018CNY (¥)director | Sep. 30, 2017CNY (¥)director | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Aug. 30, 2020 | |
Other equity investments | |||||||||||
Cash consideration | ¥ 457,326 | $ 70,088 | ¥ 5,688,340 | ¥ 1,000,000 | |||||||
Ronglian Yitong | Hangzhou Paileyun Technology Co., Ltd. | |||||||||||
Other equity investments | |||||||||||
Equity interest (as a percent) | 2.88% | 3.00% | 3.00% | ||||||||
Ronglian Yitong | Beijing Hanyuhaikuo Software Technology Co., Ltd. | |||||||||||
Other equity investments | |||||||||||
Equity interest (as a percent) | 6.56% | ||||||||||
Ronglian Yitong | Beijing Hujingtiaoyue Technology Co., Ltd. | |||||||||||
Other equity investments | |||||||||||
Equity interest (as a percent) | 4.29% | 5.45% | |||||||||
Number of directors, right to appoint | director | 1 | 1 | 1 | ||||||||
Ronglian Huitong | Hangzhou Paileyun Technology Co., Ltd. | |||||||||||
Other equity investments | |||||||||||
Equity interest (as a percent) | 3.00% | ||||||||||
Beijing Hujingtiaoyue Technology Co., Ltd. | |||||||||||
Other equity investments | |||||||||||
Gain recognized from the change in fair value | ¥ 900,000 | ¥ 100,000 | |||||||||
Hangzhou Paileyun Technology Co., Ltd. | |||||||||||
Other equity investments | |||||||||||
Gain recognized from the change in fair value | ¥ 2,154,334 | ||||||||||
Hangzhou Paileyun Technology Co., Ltd. | Ronglian Yitong | |||||||||||
Other equity investments | |||||||||||
Cash consideration | ¥ 3,188,340 | ||||||||||
Hangzhou Paileyun Technology Co., Ltd. | Ronglian Huitong | |||||||||||
Other equity investments | |||||||||||
Cash consideration | ¥ 457,326 | ||||||||||
Beijing Hanyuhaikuo Software Technology Co., Ltd. | Ronglian Yitong | |||||||||||
Other equity investments | |||||||||||
Cash consideration | ¥ 4,000,000 | ||||||||||
Sichuan Taojinniwo Information Technology Co., Ltd.and Beijing Hanyuhaikuo Software Technology Co., Ltd. | |||||||||||
Other equity investments | |||||||||||
Other than temporary loss for the investments recognized | ¥ 11,700,000 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Gross | ¥ 42,376,814 | ¥ 37,103,485 | ||
Less: Accumulated depreciation | (25,960,658) | (19,199,417) | ||
Property and Equipment, net | 16,416,156 | 17,904,068 | $ 2,515,886 | |
Depreciation expense | 6,877,787 | 6,152,479 | ¥ 5,574,439 | |
Computer and office equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Gross | 26,162,529 | 23,913,290 | ||
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Gross | 2,511,918 | 1,540,476 | ||
Motor vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Gross | 263,196 | 653,303 | ||
Leasehold improvement | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Gross | 566,507 | 369,247 | ||
Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Gross | ¥ 12,872,664 | ¥ 10,627,169 |
PROPERTY AND EQUIPMENT, NET - D
PROPERTY AND EQUIPMENT, NET - Depreciation expense (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | ¥ 6,877,787 | ¥ 6,152,479 | ¥ 5,574,439 |
Cost of revenues | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | 1,641,973 | 1,310,170 | 818,112 |
Research and development expenses | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | 1,160,673 | 1,304,893 | 777,841 |
Selling and marketing expenses | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | 2,119,406 | 2,335,885 | 1,985,829 |
General and administrative expenses | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expenses | ¥ 1,955,735 | ¥ 1,201,531 | ¥ 1,992,657 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | ¥ 8,278,192 | ¥ 10,046,940 | |
Accumulated amortization | (6,255,609) | (6,603,762) | |
Net carrying amount | 2,022,583 | 3,443,178 | |
Amortization expenses for intangible assets | 1,720,270 | 2,139,519 | ¥ 2,103,717 |
Software copyrights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 2,372,000 | 4,302,000 | |
Accumulated amortization | (1,630,750) | (3,264,250) | |
Net carrying amount | ¥ 741,250 | ¥ 1,037,750 | |
Weighted average amortization period | 8 years | 6 years 9 months 18 days | |
Telecommunication business operation licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | ¥ 5,906,192 | ¥ 5,744,940 | |
Accumulated amortization | (4,624,859) | (3,339,512) | |
Net carrying amount | ¥ 1,281,333 | ¥ 2,405,428 | |
Weighted average amortization period | 4 years | 4 years |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization expense (Details) | Dec. 31, 2020CNY (¥) |
INTANGIBLE ASSETS, NET | |
2021 | ¥ 1,039,747 |
2022 | 645,792 |
2023 | 288,422 |
2024 | 45,069 |
2025 | ¥ 3,553 |
BORROWINGS (Details)
BORROWINGS (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Debt Instrument [Line Items] | |||
Short-term bank borrowings | ¥ 20,000,000 | ¥ 26,838,032 | |
Short-term borrowings, including current portion of long-term borrowings | 20,000,000 | $ 3,065,134 | 26,838,032 |
Long-term borrowings | 96,190,363 | ||
Secured bank loans | |||
Debt Instrument [Line Items] | |||
Short-term bank borrowings | ¥ 26,838,032 | ||
Unsecured bank loans | |||
Debt Instrument [Line Items] | |||
Short-term bank borrowings | ¥ 20,000,000 |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) | 12 Months Ended | |||||||||||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Nov. 03, 2020CNY (¥)shares | Nov. 03, 2020USD ($)shares | Jul. 15, 2020CNY (¥)shares | Jul. 15, 2020USD ($)shares | Mar. 25, 2020shares | Mar. 15, 2020shares | Dec. 31, 2019USD ($)shares | Sep. 25, 2019CNY (¥)loanshares | Sep. 25, 2019USD ($)loanshares | |
Debt Instrument [Line Items] | ||||||||||||||
Short-term borrowing repaid | ¥ 26,838,032 | $ 4,113,108 | ¥ 12,988,851 | ¥ 27,502,356 | ||||||||||
Accounts receivable - third parties, net | 228,892,662 | 206,629,418 | $ 35,079,335 | |||||||||||
Prepayments and other current assets | ¥ 139,257,239 | ¥ 113,775,649 | $ 21,342,106 | |||||||||||
Secured bank loans | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted average interest rate | 7.51% | 7.51% | 7.51% | 7.51% | ||||||||||
Unsecured bank loans | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted average interest rate | 3.85% | 3.85% | ||||||||||||
Two loans from two PRC onshore investment funds | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term borrowing obtained | ¥ 106,100,000 | $ 15,000,000 | ||||||||||||
Number of unsecured loans | loan | 2 | 2 | ||||||||||||
Term of debt | 16 years 6 months | 16 years 6 months | ||||||||||||
Effective interest rate | 11.59% | 11.59% | ||||||||||||
Non current interest free loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term borrowing obtained | ¥ 91,200,000 | $ 12,900,000 | ||||||||||||
Series E Redeemable Convertible Preferred Shares | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Warrants fair value | ¥ 13,952,400 | $ 2,000,000 | ||||||||||||
Number of shares the warrants may be converted | shares | 190,597 | 190,597 | 123,677 | |||||||||||
Series E Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Warrants fair value | ¥ 14,852,880 | ¥ 16,549,825 | $ 2,471,709 | ¥ 515,611 | $ 73,268 | $ 2,100,000 | ¥ 14,800,000 | $ 2,100,000 | ||||||
Number of shares the warrants may be converted | shares | 6,112,570 | 6,426,844 | 6,426,844 | 190,597 | 190,597 | 123,677 | 6,112,570 | 6,112,570 | 6,112,570 | |||||
Ronglian Yitong | Two loans from two PRC onshore investment funds | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term borrowing obtained | ¥ 106,092,000 | |||||||||||||
Ronglian Yitong | Loan One from two PRC onshore investment funds | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term borrowing obtained | $ | $ 9,000,000 | |||||||||||||
Ronglian Yitong | Loan Two from two PRC onshore investment funds | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term borrowing obtained | $ | $ 6,000,000 | |||||||||||||
Ronglian Yitong | Short-term borrowings from SPD | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term borrowing obtained | ¥ 0 | ¥ 19,941,451 | 33,731,653 | |||||||||||
Short-term borrowing repaid | 26,838,032 | 12,988,851 | ¥ 27,502,356 | |||||||||||
Ronglian Yitong | Short-term borrowings from SPD | Asset pledged | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Accounts receivable - third parties, net | 10,610,652 | 168,249,612 | ||||||||||||
Prepayments and other current assets | ¥ 10,610,652 | |||||||||||||
Ronglian Yitong | Short-term borrowings from BOB | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Short-term borrowing obtained | ¥ 20,000,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Accrued payroll and social insurance | ¥ 51,919,137 | ¥ 45,688,185 | |
Taxes payable | 29,028,359 | 17,011,290 | |
Accrued issuance costs for Series F financing | (5,548,788) | ||
Deposits | 1,144,769 | 2,235,945 | |
Staff reimbursements | 2,437,562 | 1,841,772 | |
Other payables | 3,888,841 | 1,991,306 | |
Accrued expenses and other current liabilities | ¥ 93,967,456 | $ 14,401,143 | ¥ 68,768,498 |
WARRANT LIABILITIES (Details)
WARRANT LIABILITIES (Details) | Jan. 07, 2021USD ($)shares | Nov. 13, 2020USD ($)$ / sharesshares | Nov. 03, 2020CNY (¥)shares | Nov. 03, 2020USD ($) | Jul. 15, 2020CNY (¥)shares | Mar. 25, 2020shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Nov. 03, 2020USD ($)shares | Jul. 15, 2020USD ($)shares | Mar. 15, 2020shares | Dec. 31, 2019USD ($)$ / sharesshares | Sep. 25, 2019CNY (¥)shares | Sep. 25, 2019USD ($)$ / sharesshares | Sep. 23, 2016$ / sharesshares | Feb. 29, 2016 | Feb. 26, 2016CNY (¥) |
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Share issued (in shares) | shares | 3,501,087 | 3,706,745 | ||||||||||||||||
Series E warrants reclassified to mezzanine equity | ¥ | ¥ (122,642,269) | |||||||||||||||||
Two loans from two PRC onshore investment funds | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Term of debt | 16 years 6 months | 16 years 6 months | ||||||||||||||||
Loan amount to borrow | ¥ 106,100,000 | $ 15,000,000 | ||||||||||||||||
Novo Investment HK Limited | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Exercise price of warrants issued | $ | $ 34,000,000 | |||||||||||||||||
Series C Redeemable Convertible Preferred Shares | China Equities HK Limited | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Number of shares the warrants may be converted | shares | 661,376 | 661,376 | 661,376 | |||||||||||||||
Exercise price | $ / shares | $ 0.945 | |||||||||||||||||
Warrants fair value | ¥ 3,638,995 | $ 547,000 | ||||||||||||||||
Series E Redeemable Convertible Preferred Shares | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Number of shares the warrants may be converted | shares | 190,597 | 190,597 | 123,677 | |||||||||||||||
Warrants fair value | 13,952,400 | $ 2,000,000 | ||||||||||||||||
Series E warrants reclassified to mezzanine equity | ¥ | ¥ (122,642,269) | |||||||||||||||||
Series E Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Number of shares the warrants may be converted | shares | 6,426,844 | 190,597 | 123,677 | 6,112,570 | 6,426,844 | 190,597 | 6,112,570 | 6,112,570 | 6,112,570 | |||||||||
Exercise price | $ / shares | $ 2.45 | |||||||||||||||||
Warrants fair value | ¥ 16,549,825 | ¥ 515,611 | ¥ 14,852,880 | $ 2,471,709 | $ 73,268 | $ 2,100,000 | ¥ 14,800,000 | $ 2,100,000 | ||||||||||
Aggregate amount | $ | $ 15,000,000 | |||||||||||||||||
Series E warrants reclassified to mezzanine equity | ¥ | ¥ 122,642,269 | |||||||||||||||||
Series F Redeemable Convertible Preferred Shares | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Number of shares the warrants may be converted | shares | 11,799,685 | 11,799,685 | ||||||||||||||||
Exercise price | $ / shares | $ 2.8814 | |||||||||||||||||
Warrants fair value | ¥ 31,816,800 | $ 4,800,000 | ||||||||||||||||
Redeemable Convertible Preferred Shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Number of shares the warrants may be converted | shares | 11,799,685 | 11,799,685 | ||||||||||||||||
Exercise price | $ / shares | $ 2.8814 | |||||||||||||||||
Warrants fair value | 202,271,900 | $ 31,000,000 | ||||||||||||||||
Exercise price of warrants issued | $ | $ 34,000,000 | |||||||||||||||||
Redeemable Convertible Preferred Shares, par value | $ / shares | $ 0.0001 | |||||||||||||||||
Ronglian Yitong | Two loans from two PRC onshore investment funds | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Loan amount to borrow | ¥ | ¥ 106,092,000 | |||||||||||||||||
Ronglian Yitong | Loan One from two PRC onshore investment funds | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Loan amount to borrow | $ | 9,000,000 | |||||||||||||||||
Ronglian Yitong | Loan Two from two PRC onshore investment funds | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Loan amount to borrow | $ | $ 6,000,000 | |||||||||||||||||
Ronglian Yitong | China Equities HK Limited | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Warrants fair value | ¥ 5,678,627 | ¥ 19,470,302 | $ 2,984,000 | $ 814,000 | ||||||||||||||
Ronglian Yitong | Two-year credit facility | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||||||
Term of debt | 2 years | |||||||||||||||||
Borrowing capacity | ¥ | ¥ 40,000,000 |
WARRANT LIABILITIES - Fair valu
WARRANT LIABILITIES - Fair value of the warrant liability assumptions (Details) | Dec. 31, 2020Y | Nov. 13, 2020$ / shares | Dec. 31, 2019Y$ / shares | Sep. 25, 2019$ / shares | Sep. 23, 2016$ / shares |
Series C Redeemable Convertible Preferred Shares | China Equities HK Limited | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price per share | $ 0.945 | ||||
Series C Redeemable Convertible Preferred Shares | China Equities HK Limited | Risk-free rate of return | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 1.15 | 2.60 | |||
Series C Redeemable Convertible Preferred Shares | China Equities HK Limited | Volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 45 | 45 | |||
Series C Redeemable Convertible Preferred Shares | China Equities HK Limited | Expected dividend yield | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 0 | 0 | |||
Series C Redeemable Convertible Preferred Shares | China Equities HK Limited | Fair value of underlying Redeemable Convertible Preferred Shares | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 5.42 | 1.97 | |||
Series C Redeemable Convertible Preferred Shares | China Equities HK Limited | Expected term | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 2.7 | 3.7 | |||
Series C Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | Risk-free rate of return | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 2.58 | ||||
Series C Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | Volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 55 | ||||
Series E Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price per share | $ 2.45 | ||||
Series E Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | Expected dividend yield | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 0 | ||||
Series E Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | Fair value of underlying Redeemable Convertible Preferred Shares | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price per share | $ 2.49 | ||||
Series E Redeemable Convertible Preferred Shares | Two PRC onshore investment funds | Expected term | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | Y | 1.2 | ||||
Series F Redeemable Convertible Preferred Shares | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price per share | $ 2.8814 | ||||
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price per share | $ 2.8814 | ||||
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | Risk-free rate of return | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 1.07 | ||||
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | Volatility | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 30 | ||||
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | Expected dividend yield | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 0 | ||||
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | Fair value of underlying Redeemable Convertible Preferred Shares | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | 5.50 | ||||
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | Expected term | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant measurement input | Y | 0.36 |
REDEEMABLE CONVERTIBLE PREFER_3
REDEEMABLE CONVERTIBLE PREFERRED SHARES - Share issues (Details) | Nov. 13, 2020CNY (¥)shares | Nov. 13, 2020USD ($)$ / sharesshares | Nov. 03, 2020USD ($) | Jul. 15, 2020shares | Mar. 25, 2020shares | Aug. 28, 2019CNY (¥)shares | Aug. 28, 2019USD ($)$ / sharesshares | Mar. 19, 2018CNY (¥)shares | Mar. 19, 2018USD ($)$ / sharesshares | Jun. 10, 2016CNY (¥)shares | Jun. 10, 2016USD ($)$ / sharesshares | Feb. 06, 2015CNY (¥)shares | Feb. 06, 2015USD ($)$ / sharesshares | Jul. 30, 2014CNY (¥)shares | Jul. 30, 2014USD ($)$ / sharesshares | Feb. 28, 2021CNY (¥)shares | Feb. 28, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥) | Nov. 03, 2020CNY (¥)shares |
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Issuance costs paid | ¥ 6,281,530 | $ 962,687 | ¥ 12,427,087 | ¥ 1,793,926 | ||||||||||||||||||
Hongshan Shengde | Ronglian Yitong | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Cash invested | ¥ 230,086,500 | $ 35,000,000 | ||||||||||||||||||||
Ronglian Yitong | Hongshan Shengde | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Payable to affiliate | ¥ | ¥ 230,086,500 | |||||||||||||||||||||
Series A Redeemable Convertible Preferred Shares | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Shares issued (in shares) | 18,642,038 | 18,642,038 | ||||||||||||||||||||
Issue price per share | $ / shares | $ 0.1475 | |||||||||||||||||||||
Consideration | ¥ 16,902,050 | $ 2,750,000 | ||||||||||||||||||||
Series B Redeemable Convertible Preferred Shares | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Shares issued (in shares) | 19,617,225 | 19,617,225 | ||||||||||||||||||||
Issue price per share | $ / shares | $ 0.52 | |||||||||||||||||||||
Consideration | ¥ 62,691,240 | $ 10,200,000 | ||||||||||||||||||||
Series C Redeemable Convertible Preferred Shares | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Shares issued (in shares) | 18,608,315 | 18,608,315 | ||||||||||||||||||||
Issue price per share | $ / shares | $ 1.34 | |||||||||||||||||||||
Consideration | ¥ 165,466,000 | $ 25,000,000 | ||||||||||||||||||||
Series C Redeemable Convertible Preferred Shares | Max Connect | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Number of shares approved to issue | 26,051,641 | |||||||||||||||||||||
Proceed from issuance of redeemable convertible preferred shares | $ | $ 35,000,000 | |||||||||||||||||||||
Series C Redeemable Convertible Preferred Shares | Max Connect | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Number of shares owned | 26,051,641 | |||||||||||||||||||||
Number of shares surrendered | 26,051,641 | |||||||||||||||||||||
Series C Redeemable Convertible Preferred Shares | Max Honest | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Number of shares owned | 26,051,641 | |||||||||||||||||||||
Series D Redeemable Convertible Preferred Shares | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Shares issued (in shares) | 12,462,157 | 12,462,157 | ||||||||||||||||||||
Issue price per share | $ / shares | $ 2.05 | |||||||||||||||||||||
Consideration | ¥ 160,975,360 | $ 25,600,000 | ||||||||||||||||||||
Series E Redeemable Convertible Preferred Shares | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Shares issued (in shares) | 406,605 | 263,843 | 13,040,152 | 13,040,152 | ||||||||||||||||||
Issue price per share | $ / shares | $ 2.45 | |||||||||||||||||||||
Consideration | ¥ 226,646,200 | $ 32,000,000 | ||||||||||||||||||||
Issuance costs | ¥ 12,427,087 | $ 1,765,769 | ||||||||||||||||||||
Series F Redeemable Convertible Preferred Shares | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Shares issued (in shares) | 31,581,509 | 31,581,509 | ||||||||||||||||||||
Issue price per share | $ / shares | $ 2.88 | |||||||||||||||||||||
Consideration | ¥ 598,661,700 | $ 91,000,000 | ||||||||||||||||||||
Number of shares approved to issue | 43,381,194 | 43,381,194 | 0 | |||||||||||||||||||
Issuance costs | ¥ 11,830,318 | $ 1,807,278 | ||||||||||||||||||||
Class A ordinary shares | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Shares issued (in shares) | 3,501,087 | 3,706,745 | ||||||||||||||||||||
Subsequent event | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Number of preferred shares converted to class A ordinary shares | 158,900,014 | 158,900,014 | ||||||||||||||||||||
Conversion ratio | 1 | 1 | ||||||||||||||||||||
IPO | Subsequent event | ||||||||||||||||||||||
Redeemable convertible preferred shares activities | ||||||||||||||||||||||
Issue price per share | $ / shares | $ 16 | |||||||||||||||||||||
Number of ADS shares issued | 23,000,000 | 23,000,000 | ||||||||||||||||||||
Net proceeds from issuance of initial public offering | ¥ 2,200,000,000 | $ 342,200,000 | ||||||||||||||||||||
Number of ordinary shares per ADS | 2 | 2 | ||||||||||||||||||||
Number of preferred shares converted to class A ordinary shares | 158,900,014 | 158,900,014 | ||||||||||||||||||||
Conversion ratio | 1 | 1 |
REDEEMABLE CONVERTIBLE PREFER_4
REDEEMABLE CONVERTIBLE PREFERRED SHARES - Share Activities (Details) | Aug. 28, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Redeemable convertible preferred shares activities | |||||
Beginning balance | ¥ 1,444,141,422 | ¥ 1,077,924,351 | ¥ 755,224,412 | ||
Exercise of Series E warrants | 122,642,269 | ||||
Issuance for cash | 598,661,700 | 226,646,200 | 160,975,360 | ||
Issuance costs | (11,830,318) | (12,427,087) | (1,793,926) | ||
Inducement cost | 4,768,612 | ||||
Modifications | 12,278,498 | 4,654,516 | |||
Deemed dividends | 12,070,034 | $ 1,849,814 | |||
Accretion of Redeemable Convertible Preferred Shares | 3,327,579,958 | 128,753,445 | 102,212,637 | ||
Foreign currency translation adjustment | (281,260,804) | 15,734,627 | 56,651,352 | ||
Ending balance | 4,875,825,761 | 747,252,990 | 1,444,141,422 | 1,077,924,351 | |
Subscription receivable | 336,178,500 | ||||
Carrying amount | 5,212,004,261 | ||||
Series A Redeemable Convertible Preferred Shares | |||||
Redeemable convertible preferred shares activities | |||||
Beginning balance | 183,371,326 | 157,371,163 | 128,754,021 | ||
Accretion of Redeemable Convertible Preferred Shares | 504,054,460 | 23,148,378 | 21,341,595 | ||
Foreign currency translation adjustment | (39,098,264) | 2,851,785 | 7,275,547 | ||
Ending balance | 648,327,522 | 183,371,326 | 157,371,163 | ||
Carrying amount | 648,327,522 | ||||
Series B Redeemable Convertible Preferred Shares | |||||
Redeemable convertible preferred shares activities | |||||
Beginning balance | 212,123,212 | 184,452,606 | 153,434,897 | ||
Accretion of Redeemable Convertible Preferred Shares | 515,537,848 | 24,359,297 | 22,457,999 | ||
Foreign currency translation adjustment | (41,578,748) | 3,311,309 | 8,559,710 | ||
Ending balance | 686,082,312 | 212,123,212 | 184,452,606 | ||
Carrying amount | 686,082,312 | ||||
Series C Redeemable Convertible Preferred Shares | |||||
Redeemable convertible preferred shares activities | |||||
Beginning balance | 613,766,867 | 548,653,276 | 473,035,494 | ||
Modifications | 6,716,297 | 4,654,516 | |||
Accretion of Redeemable Convertible Preferred Shares | 1,062,760,468 | 48,739,310 | 45,290,526 | ||
Foreign currency translation adjustment | (97,129,867) | 9,657,984 | 25,672,740 | ||
Ending balance | 1,349,310,968 | 613,766,867 | 548,653,276 | ||
Subscription receivable | 230,086,500 | ||||
Carrying amount | 1,579,397,468 | ||||
Series D Redeemable Convertible Preferred Shares | |||||
Redeemable convertible preferred shares activities | |||||
Beginning balance | 205,776,240 | 187,447,306 | |||
Issuance for cash | 160,975,360 | ||||
Issuance costs | (1,793,926) | ||||
Modifications | 5,562,201 | ||||
Accretion of Redeemable Convertible Preferred Shares | 266,737,805 | 9,510,712 | 13,122,517 | ||
Foreign currency translation adjustment | (27,724,670) | 3,256,021 | 15,143,355 | ||
Ending balance | 444,789,375 | 205,776,240 | ¥ 187,447,306 | ||
Carrying amount | 444,789,375 | ||||
Series E Redeemable Convertible Preferred Shares | |||||
Redeemable convertible preferred shares activities | |||||
Beginning balance | 229,103,777 | ||||
Exercise of Series E warrants | 122,642,269 | ||||
Issuance for cash | 226,646,200 | ||||
Issuance costs | (12,427,087) | ||||
Inducement cost | 4,768,612 | ||||
Deemed dividends | 12,070,034 | ||||
Accretion of Redeemable Convertible Preferred Shares | 396,239,268 | 22,995,748 | |||
Foreign currency translation adjustment | (40,011,798) | (3,342,472) | |||
Ending balance | 613,951,550 | ¥ 229,103,777 | |||
Subscription receivable | 106,092,000 | ||||
Carrying amount | 720,043,550 | ||||
Series F Redeemable Convertible Preferred Shares | |||||
Redeemable convertible preferred shares activities | |||||
Issuance for cash | 598,661,700 | ||||
Issuance costs | (11,830,318) | ||||
Accretion of Redeemable Convertible Preferred Shares | 582,250,109 | ||||
Foreign currency translation adjustment | (35,717,457) | ||||
Ending balance | 1,133,364,034 | $ 173,695,637 | |||
Carrying amount | ¥ 1,133,364,034 | ||||
Mr. Li | |||||
Redeemable convertible preferred shares activities | |||||
Restricted period on ordinary shares owed | 3 years | ||||
Fair value of restricted shares | ¥ 4,768,612 |
REDEEMABLE CONVERTIBLE PREFER_5
REDEEMABLE CONVERTIBLE PREFERRED SHARES - (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Temporary Equity [Line Items] | |||||||
Percentage of Preferred Shares issue price for redemption amount | 100.00% | 100.00% | |||||
Percentage of compound per annum for redemption amount | 8.00% | 8.00% | |||||
Forecast | |||||||
Temporary Equity [Line Items] | |||||||
Redemption amounts for Preferred Shares | $ 0 | $ 0 | $ 0 | $ 318,355,915 | $ 0 |
REDEEMABLE CONVERTIBLE PREFER_6
REDEEMABLE CONVERTIBLE PREFERRED SHARES Redemption (Details) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | Feb. 28, 2018USD ($) | Feb. 28, 2018CNY (¥) | Dec. 31, 2020 | |
Temporary Equity [Line Items] | |||||
Percentage of Preferred Shares issue price for redemption amount | 100.00% | 100.00% | 100.00% | ||
Percentage of compound per annum for redemption amount | 8.00% | 8.00% | 8.00% | ||
Dividend entitled (as a percent) | 8.00% | ||||
Percentage of original preferred shares issue price, in the event of any liquidation | 10.00% | 10.00% | |||
Series C Redeemable Convertible Preferred Shares | |||||
Temporary Equity [Line Items] | |||||
Increase in fair value | $ 973,588 | ¥ 6,716,297 | $ 703,375 | ¥ 4,654,516 | |
Series D Redeemable Convertible Preferred Shares | |||||
Temporary Equity [Line Items] | |||||
Increase in fair value | $ 806,291 | ¥ 5,562,201 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted ordinary shares (Details) | Mar. 25, 2021shares | Aug. 28, 2019shares | Jul. 31, 2020USD ($)shares | Mar. 31, 2020$ / sharesshares | Mar. 31, 2022shares | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥)shares | Aug. 29, 2019$ / shares |
Baiyi | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ownership (as a percent) | 38.00% | |||||||
Restricted ordinary shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of ordinary shares became restricted | 3,706,745 | |||||||
Fair value of restricted ordinary shares | $ / shares | $ 4,855,836 | $ 10,764,459 | ||||||
Vesting period | 2 years | |||||||
Number of restricted shares became vested | 3,706,745 | |||||||
Unrecognized share-based compensation expense | $ 3,502,071 | ¥ 21,312,280 | ||||||
Restricted ordinary shares | Non-employee founder | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares held | 1,700,000 | |||||||
Fair value of restricted ordinary shares | $ | $ 110,500 | |||||||
Restricted ordinary shares | Cloopen Co., Ltd. | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of ordinary shares became restricted | 8,154,893 | |||||||
Restricted ordinary shares | Cloopen Co., Ltd. | First anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 33.30% | |||||||
Restricted ordinary shares | Cloopen Co., Ltd. | Second and third anniversaries | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 66.60% | |||||||
Restricted ordinary shares | Kastle Limited | Forecast | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of restricted shares became vested | 1,853,373 | 1,853,372 |
SHARE-BASED COMPENSATION - Re_2
SHARE-BASED COMPENSATION - Restricted ordinary shares activities (Details) - Employees - ¥ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Table] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ¥ 1.32 | ¥ 1.32 | ¥ 0.38 |
Weighted average grant date fair value, beginning | 1.32 | 0.38 | |
Weighted average grant date fair value, granted | 1.31 | 1.32 | ¥ 0.38 |
Weighted average grant date fair value, vested | 1.31 | ||
Weighted average grant date fair value, ending | ¥ 1.32 | ¥ 1.32 | |
Number of shares | |||
Beginning balance (in shares) | 8,154,893 | 3,964,184 | |
Granted (in shares) | 3,706,745 | 8,154,893 | |
Vested (in shares) | (6,425,043) | (3,964,184) | |
Ending balance (in shares) | 5,436,595 | 8,154,893 |
SHARE-BASED COMPENSATION - Re_3
SHARE-BASED COMPENSATION - Restricted ordinary shares, compensation expenses (Details) - Restricted ordinary shares - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expenses | ¥ 70,618,377 | ¥ 15,126,755 | ¥ 1,404,438 |
General and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expenses | ¥ 70,618,377 | ¥ 15,126,755 | ¥ 1,404,438 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Shares Options (Details) - Share options - $ / shares | Jan. 01, 2021 | Jul. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Sep. 30, 2018 | Jan. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted exercise price | $ 0.248 | |||||||
Granted (in shares) | 4,025,499 | |||||||
2016 Share Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for issuance | 21,119,408 | |||||||
Granted exercise price | $ 0.30 | $ 0.26 | $ 0.35 | |||||
Contractual term | 10 years | 6 years 7 months 6 days | ||||||
Granted (in shares) | 7,700,228 | 2,750,000 | 5,412,917 | |||||
2016 Share Plan | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 25.00% | |||||||
Vesting period | 12 months | |||||||
Granted exercise price | $ 0.01 | |||||||
2016 Share Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 50.00% | |||||||
Vesting period | 36 months | |||||||
Granted exercise price | $ 0.38 | |||||||
2016 Share Plan | Class A ordinary shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for issuance | 29,525,465 | 26,419,211 | 25,838,502 |
SHARE-BASED COMPENSATION - Sh_2
SHARE-BASED COMPENSATION - Shares options activities (Details) - Share options | Jan. 01, 2021$ / sharesshares | Jul. 31, 2020 | Dec. 31, 2020CNY (¥)$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2017$ / shares |
Number of shares | |||||||
Granted (in shares) | shares | 4,025,499 | ||||||
Weighted average exercise price | |||||||
Weighted average exercise price, granted | $ / shares | $ 0.248 | ||||||
2016 Share Plan | |||||||
Number of shares | |||||||
Beginning balance (in shares) | shares | 25,324,435 | 21,251,155 | 21,950,001 | 17,285,084 | |||
Granted (in shares) | shares | 7,700,228 | 2,750,000 | 5,412,917 | ||||
Forfeited (in shares) | shares | (3,626,948) | (3,448,846) | (748,000) | ||||
Ending balance (in shares) | shares | 25,324,435 | 21,251,155 | 21,950,001 | ||||
Weighted average exercise price | |||||||
Weighted average exercise price, beginning | $ / shares | $ 0.24 | $ 0.24 | $ 0.25 | $ 0.21 | |||
Weighted average exercise price, granted | $ / shares | $ 0.30 | 0.26 | 0.35 | ||||
Weighted average exercise price, forfeited | $ / shares | $ 0.27 | 0.27 | 0.25 | ||||
Weighted average exercise price, ending | $ / shares | $ 0.24 | $ 0.24 | $ 0.25 | $ 0.21 | |||
Vested and expected to vest | |||||||
Vested and expected to vest, number of shares | shares | 25,324,435 | 25,324,435 | |||||
Vested and expected to vest, weighted average exercise price | $ / shares | $ 0.25 | ||||||
Vested and expected to vest, weighted remaining contractual years | 10 years | 6 years 7 months 6 days | |||||
Vested and expected to vest, aggregate intrinsic value | ¥ | $ 17,774,121 | ||||||
Exercisable | |||||||
Exercisable, number of shares | shares | 13,714,193 | 13,714,193 | |||||
Exercisable, weighted average exercise price | $ / shares | $ 0.21 | ||||||
Exercisable, weighted remaining contractual years | 4 years 7 months 17 days | ||||||
Exercisable, aggregate intrinsic value | $ | $ 9,130,955 |
SHARE-BASED COMPENSATION - Sh_3
SHARE-BASED COMPENSATION - Shares options, assumptions used (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair values of the options granted, assumptions used | |||
Weighted average grant date fair value | $ 1.53 | $ 1.09 | $ 0.90 |
Share options | |||
Fair values of the options granted, assumptions used | |||
Risk-free rate of return, minimum | 1.64% | 2.50% | 3.70% |
Risk-free rate of return, maximum | 1.91% | 2.90% | 4.00% |
Volatility | 45.00% | 45.00% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Exercise multiple | 2.20 | 2.20 | 2.20 |
Expiration terms | 10 years | 10 years | 10 years |
Share options | Minimum | |||
Fair values of the options granted, assumptions used | |||
Volatility | 45.00% | ||
Fair value of underlying ordinary share | $ 1.31 | $ 1.19 | $ 1.14 |
Share options | Maximum | |||
Fair values of the options granted, assumptions used | |||
Volatility | 50.00% | ||
Fair value of underlying ordinary share | $ 5.32 | $ 1.36 | $ 1.19 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation expense recognized for shares options (Details) $ in Millions | Jan. 01, 2021CNY (¥) | Jan. 01, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to share options | ¥ 71,120,802 | ||||
Weighted average period share options expected to be recognized | 3 years 9 months | ||||
Share options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share option compensation expenses | ¥ 205,400,000 | $ 31.5 | ¥ 18,157,866 | ¥ 12,328,148 | ¥ 5,388,241 |
Share options | Cost of revenues | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share option compensation expenses | 485,987 | 598,204 | 142,416 | ||
Share options | Research and development expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share option compensation expenses | 1,396,422 | 305,554 | 1,474,597 | ||
Share options | Selling and marketing expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share option compensation expenses | 998,779 | 4,901,300 | 163,658 | ||
Share options | General and administrative expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share option compensation expenses | ¥ 15,276,678 | ¥ 6,523,090 | ¥ 3,607,570 |
SHARE-BASED COMPENSATION - Ordi
SHARE-BASED COMPENSATION - Ordinary shares issued to management employees (Details) - Ordinary Shares | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020CNY (¥) | Jul. 31, 2020CNY (¥)itemshares | Dec. 31, 2020CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of majority owned subsidiaries obtained from the non controlling shareholders | item | 3 | ||
Cash consideration for subsidiaries obtained from minority shareholders | ¥ 16,095,169 | ||
Purchase of the non-controlling interests of the Group's subsidiaries (in shares) | shares | 3,501,087 | ||
Share-based compensation expenses | ¥ 5,071,378 | ||
Cash paid to acquire subsidiaries' equity interests held by noncontrolling shareholders | ¥ 16,095,169 |
SHARE-BASED COMPENSATION - Waiv
SHARE-BASED COMPENSATION - Waiver of subscription receivable due from a shareholder (Details) | Jul. 15, 2020shares | Mar. 25, 2020shares | Jun. 10, 2016USD ($)shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ordinary shares issued | 3,501,087 | 3,706,745 | |||
Mr. Changxun Sun | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ordinary shares issued | 16,982,978 | ||||
Aggregate consideration | $ | $ 3,674,376 | ||||
Share-based compensation expenses | ¥ 23,218,856 | $ 3,672,678 |
FAIR VALUE MEASUREMENT - Fair v
FAIR VALUE MEASUREMENT - Fair value hierarchy of assets and liabilities (Details) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets, Fair Value Disclosure [Abstract] | ||||
Shortterm investments (Note 4) | ¥ 2,501,024 | ¥ 2,994,216 | ¥ 11,772,573 | |
Long-term investments | ¥ 48,200,000 | 36,288,340 | 29,700,000 | |
Liabilities, Fair Value Disclosure [Abstract] | ||||
Warrant liabilities (Note 12) | 221,742,202 | 19,631,027 | 5,037,589 | 4,351,777 |
Available-for-sale debt securities | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Long-term investments | 11,800,000 | 2,500,000 | ||
Other equity investments | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Long-term investments | 36,400,000 | 33,788,340 | ¥ 29,700,000 | ¥ 12,000,000 |
Recurring member | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Shortterm investments (Note 4) | 2,501,024 | |||
Total | 48,200,000 | 36,288,340 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Warrant liabilities (Note 12) | 221,742,202 | 19,631,027 | ||
Recurring member | Available-for-sale debt securities | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Long-term investments | 11,800,000 | 2,500,000 | ||
Recurring member | Other equity investments | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Long-term investments | 36,400,000 | 33,788,340 | ||
Level 2 | Recurring member | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Shortterm investments (Note 4) | 2,501,024 | |||
Level 3 | Recurring member | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Total | 48,200,000 | 36,288,340 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Warrant liabilities (Note 12) | 221,742,202 | 19,631,027 | ||
Level 3 | Recurring member | Available-for-sale debt securities | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Long-term investments | 11,800,000 | 2,500,000 | ||
Level 3 | Recurring member | Other equity investments | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Long-term investments | ¥ 36,400,000 | ¥ 33,788,340 |
FAIR VALUE MEASUREMENT - Reconc
FAIR VALUE MEASUREMENT - Reconciliation of recurring fair value measurements (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation from the opening balances to the closing balances for recurring fair value measurements of the fair value hierarchy | |||
Shortterm investments (Note 4), January 1 | ¥ 2,501,024 | ¥ 2,994,216 | ¥ 11,772,573 |
Purchase/Issue | 34,000,000 | 49,000,000 | |
Sell / Exercise | 2,512,192 | 34,614,192 | 58,384,622 |
Included in earnings | 12,192 | 114,192 | 384,622 |
Included in other comprehensive loss | (1,024) | 6,808 | 221,643 |
Shortterm investments (Note 4), December 31 | 2,501,024 | 2,994,216 | |
Long-term investments, January 1 | 36,288,340 | 29,700,000 | |
Purchase/Issue | 457,326 | 5,688,340 | |
Included in earnings | 2,154,334 | 900,000 | |
Included in other comprehensive loss | 9,300,000 | ||
Long-term investments, December 31 | 48,200,000 | 36,288,340 | 29,700,000 |
Warrant liabilities (Note 12), January 1 | 19,631,027 | 5,037,589 | 4,351,777 |
Purchase/Issue | 14,852,880 | ||
Sell | 16,549,825 | ||
Included in earnings | 221,462,056 | (137,969) | 450,083 |
Foreign currency translation adjustment included in other comprehensive loss | (2,801,056) | (121,473) | 235,729 |
Warrant liabilities (Note 12), December 31 | 221,742,202 | 19,631,027 | 5,037,589 |
Available-for-sale debt securities | |||
Reconciliation from the opening balances to the closing balances for recurring fair value measurements of the fair value hierarchy | |||
Long-term investments, January 1 | 2,500,000 | ||
Purchase/Issue | 2,500,000 | ||
Included in other comprehensive loss | 9,300,000 | ||
Long-term investments, December 31 | 11,800,000 | 2,500,000 | |
Other equity investments | |||
Reconciliation from the opening balances to the closing balances for recurring fair value measurements of the fair value hierarchy | |||
Long-term investments, January 1 | 33,788,340 | 29,700,000 | 12,000,000 |
Purchase/Issue | 457,326 | 3,188,340 | |
Included in earnings | 2,154,334 | 900,000 | 17,700,000 |
Long-term investments, December 31 | ¥ 36,400,000 | ¥ 33,788,340 | ¥ 29,700,000 |
INCOME TAX - Description by Tax
INCOME TAX - Description by Tax Authorities (Details) $ in Millions | Dec. 31, 2019 | Apr. 14, 2008 | Jun. 30, 2017 | Jan. 31, 2008 | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020HKD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2021 |
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Tax provision | ¥ 1,623,961 | $ 248,883 | ¥ 652,610 | ¥ 2,672,098 | ||||||||||
Ronglian 7Moor | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Preferential income tax rate | 15.00% | |||||||||||||
Baiyi | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Preferential income tax rate | 15.00% | |||||||||||||
Ronglian Guanghui and Beijing Yunrong Tianxia Technology Co., Ltd. | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Preferential income tax rate | 15.00% | |||||||||||||
Beijing Yunrong Tianxia Technology Co Ltd | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Preferential income tax rate | 15.00% | |||||||||||||
Ronglian Guanghui | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Preferential income tax rate | 15.00% | |||||||||||||
Ronglian Yitong | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Preferential income tax rate | 15.00% | |||||||||||||
Process of renewing period | 3 years | 3 years | 3 years | |||||||||||
Beijing Ronglian Huitong Technology Co., Ltd. and Shenzhen Zhongtian Wangjing Technology Co., Ltd. | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Preferential income tax rate | 15.00% | |||||||||||||
The Cayman Islands | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Payable of stamp duty | ¥ 0 | |||||||||||||
Hong Kong S.A.R | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Statutory income tax rate | 16.50% | 16.50% | 16.50% | |||||||||||
Assessable profits threshold for preferential income tax rate | $ | $ 2 | |||||||||||||
Preferential income tax rate | 8.25% | 8.25% | 8.25% | |||||||||||
Tax provision | ¥ 0 | 0 | ||||||||||||
Assessable profits | ¥ 0 | ¥ 0 | ¥ 0 | |||||||||||
Japan | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Withholding tax rate | 20.42% | 20.42% | 20.42% | |||||||||||
Preferential withholding tax rate | 10.00% | 10.00% | 10.00% | |||||||||||
Japan | Minimum | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Statutory income tax rate | 30.00% | 30.00% | 30.00% | |||||||||||
Japan | Maximum | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Statutory income tax rate | 34.00% | 34.00% | 34.00% | |||||||||||
The PRC | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | ||||||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | |||||||||
Withholding tax rate | 10.00% | 10.00% | 10.00% | |||||||||||
The PRC | Minimum | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Foreign investor ownership in the shares of VIE | 25.00% | 25.00% | 25.00% | |||||||||||
The PRC | Maximum | ||||||||||||||
Income Tax and Tax Rate [Line Items] | ||||||||||||||
Preferential withholding tax rate | 5.00% | 5.00% | 5.00% |
INCOME TAX - Components of loss
INCOME TAX - Components of loss before income taxes (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax and Tax Rate [Line Items] | ||||
Loss before income taxes | ¥ (498,215,704) | $ (76,354,898) | ¥ (182,841,751) | ¥ (152,793,150) |
The Cayman Islands | ||||
Income Tax and Tax Rate [Line Items] | ||||
Loss before income taxes | (331,728,653) | (27,173,956) | (8,508,744) | |
Hong Kong S.A.R | ||||
Income Tax and Tax Rate [Line Items] | ||||
Loss before income taxes | (1,270,314) | (21,374) | (100,880) | |
Japan | ||||
Income Tax and Tax Rate [Line Items] | ||||
Loss before income taxes | 6,054,598 | 4,080,678 | (1,843,749) | |
The PRC | ||||
Income Tax and Tax Rate [Line Items] | ||||
Loss before income taxes | ¥ (171,271,335) | ¥ (159,727,099) | ¥ (142,339,777) |
INCOME TAX - Income tax expense
INCOME TAX - Income tax expense (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
INCOME TAX | ||||
Current income tax expense | ¥ 2,492,711 | ¥ 307,850 | ¥ 973,035 | |
Deferred income tax expense (benefit) | (868,750) | $ (133,142) | 344,760 | 1,699,063 |
Actual income tax expense | ¥ 1,623,961 | $ 248,883 | ¥ 652,610 | ¥ 2,672,098 |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of the differences between the income tax benefit (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
INCOME TAX | ||||
Computed expected income tax benefit | ¥ (124,553,926) | ¥ (45,710,438) | ¥ (38,198,288) | |
Non-deductible expenses / taxable deemed income | ||||
Share-based compensation | 29,266,619 | 6,863,726 | 1,698,170 | |
Accretion of interest expenses on unsecured loans | 3,179,383 | 1,001,827 | ||
Non-deductible entertainment | 984,405 | 968,832 | 1,210,158 | |
Change in fair value of warrant liabilities | 55,365,514 | (34,492) | 112,521 | |
Taxable deemed interest income from inter-company interest-free loans | 989,741 | 176,832 | ||
Others | 2,786,532 | 1,629,482 | 745,488 | |
Entities not subject to income tax | 3,343,107 | (1,217,586) | 884,692 | |
Research and development expenses bonus deduction | (3,270,423) | (24,851,250) | (12,090,177) | |
HNTE tax incentives | (21,890,430) | (266,961) | (744,674) | |
Over provision in respect of prior years | (74,125) | (166,030) | (1,582,864) | |
Others | 652,357 | 462,947 | 104,153 | |
Changes in valuation allowance | 55,834,948 | 60,982,812 | 50,356,087 | |
Actual income tax expense | ¥ 1,623,961 | $ 248,883 | ¥ 652,610 | ¥ 2,672,098 |
INCOME TAX - Deferred income ta
INCOME TAX - Deferred income tax assets (Details) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
INCOME TAX | ||||
Net operating loss carry forwards | ¥ 228,979,794 | ¥ 161,427,285 | ¥ 111,643,190 | |
Uninvoiced expenditures | 6,204,204 | 23,400,140 | 14,587,617 | |
Accounts receivable and contract assets allowance | 10,363,565 | 6,966,170 | 4,877,088 | |
Long term investments impairment | 5,260,379 | 5,260,379 | 5,260,379 | |
Goodwill impairment | 1,416,835 | 1,416,835 | 1,416,835 | |
Share of losses of equity method investments | 751,836 | 140,281 | ||
Others | 1,356,575 | 28,279 | 157,237 | |
Less: Valuation allowance | (244,186,061) | (193,549,709) | (132,566,897) | ¥ (82,210,810) |
Total deferred income tax assets, net | 10,147,127 | 5,089,660 | 5,375,449 | |
Intangible assets | (185,313) | (259,438) | (425,467) | |
Equity method investment on the gain from the disposal of a subsidiary | (3,724,258) | |||
Changes in fair value of long-term investments | (5,188,584) | (4,650,000) | (4,425,000) | |
Total gross deferred income tax liabilities | (9,098,155) | (4,909,438) | (4,850,467) | |
Net deferred income tax assets | ¥ 1,048,972 | ¥ 180,222 | ¥ 524,982 |
INCOME TAX - Net operating loss
INCOME TAX - Net operating loss carry forwards (Details) | Dec. 31, 2020CNY (¥) |
INCOME TAX | |
2021 | ¥ 23,070,552 |
2022 | 127,827,248 |
2023 | 20,759,125 |
2024 | 33,794,384 |
2025 | 104,952,488 |
Thereafter | 607,901,070 |
Total | ¥ 918,304,867 |
INCOME TAX - Valuation allowanc
INCOME TAX - Valuation allowance (Details) - CNY (¥) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | ||||
Valuation allowance | ¥ 244,186,061 | ¥ 193,549,709 | ¥ 132,566,897 | ¥ 82,210,810 |
Statute extended limitation period | 5 years | 10 years | ||
Underpayment of taxes | ¥ 100,000 | |||
The PRC | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | ¥ 244,186,061 |
INCOME TAX - Changes in valuati
INCOME TAX - Changes in valuation allowance (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME TAX | |||
Balance at the beginning of the year | ¥ (193,549,709) | ¥ (132,566,897) | ¥ (82,210,810) |
Additions | (55,834,948) | (60,982,812) | (50,356,087) |
Decrease upon disposal of a subsidiary | 5,198,596 | ||
Balance at the end of the year | ¥ (244,186,061) | ¥ (193,549,709) | ¥ (132,566,897) |
NET LOSS PER SHARE - Reconcilia
NET LOSS PER SHARE - Reconciliation for basic and diluted net loss per ordinary share (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss | ¥ (499,839,665) | $ (76,603,781) | ¥ (183,494,361) | ¥ (155,465,248) |
Accretion and modifications of Redeemable Convertible Preferred Shares | (3,327,579,958) | (141,031,943) | (106,867,153) | |
Deemed dividend to Series E Redeemable Convertible Preferred Shareholders | (12,070,034) | |||
Numerator for basic and diluted net loss per ordinary share calculation | ¥ (3,839,489,657) | $ (588,427,535) | ¥ (324,526,304) | ¥ (262,332,401) |
Denominator: | ||||
Weighted average number of pre-offering Class A and preoffering Class B ordinary shares | shares | 85,103,964 | 85,103,964 | 89,567,463 | 91,083,938 |
Denominator for basic and diluted net loss per ordinary share calculation | ¥ 85,103,964 | ¥ 89,567,463 | ¥ 91,083,938 | |
Net loss per ordinary share attributable to pre-offering Class A and pre-offering Class B ordinary shareholders | ||||
- Basic and diluted | (per share) | ¥ (45.12) | $ (6.91) | ¥ (3.62) | ¥ (2.88) |
NET LOSS PER SHARE - Potentiall
NET LOSS PER SHARE - Potentially dilute basic net loss per ordinary share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of diluted net loss per ordinary share | 25,324,435 | 21,251,155 | 21,950,001 |
Restricted ordinary shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of diluted net loss per ordinary share | 7,136,595 | 9,854,893 | 1,700,000 |
Redeemable Convertible Preferred Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of diluted net loss per ordinary share | 147,100,329 | 108,421,528 | 95,381,376 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included in the computation of diluted net loss per ordinary share | 12,461,061 | 6,773,946 | 661,376 |
REVENUE INFORMATION - Disaggreg
REVENUE INFORMATION - Disaggregated by major products/services lines (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 767,688,120 | $ 117,653,352 | ¥ 650,282,167 | ¥ 501,488,667 |
CPaaS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | ||||
- Text messaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 265,182,655 | 234,745,048 | 167,859,282 | |
- Voice calls | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 71,991,638 | 67,128,537 | 60,285,356 | |
- Others | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62,919,144 | 43,383,515 | 27,060,127 | |
Cloudbased CC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 245,135,106 | 173,593,018 | 129,198,999 | |
Cloudbased UC&C | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 118,310,137 | 123,165,257 | 111,931,266 | |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 4,149,440 | ¥ 8,266,792 | ¥ 5,153,637 |
REVENUE INFORMATION - Timing of
REVENUE INFORMATION - Timing of revenue recognition (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 767,688,120 | $ 117,653,352 | ¥ 650,282,167 | ¥ 501,488,667 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 597,627,257 | 474,920,173 | 353,009,329 | |
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 170,060,863 | ¥ 175,361,994 | ¥ 148,479,338 |
REVENUE INFORMATION - Primary g
REVENUE INFORMATION - Primary geographical markets (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 767,688,120 | $ 117,653,352 | ¥ 650,282,167 | ¥ 501,488,667 |
The PRC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 739,975,367 | 640,290,226 | 498,615,542 | |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | ¥ 27,712,753 | ¥ 9,991,941 | ¥ 2,873,125 |
REVENUE INFORMATION - Contract
REVENUE INFORMATION - Contract assets and contract liabilities (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
REVENUE INFORMATION | |||||
Contract assets | ¥ 36,307,474 | $ 5,564,364 | ¥ 25,249,719 | ¥ 18,036,555 | |
Contract liabilities | ¥ 95,992,689 | $ 14,711,523 | ¥ 111,953,381 | ¥ 98,417,522 | ¥ 74,361,332 |
REVENUE INFORMATION - Changes i
REVENUE INFORMATION - Changes in the contract assets balances (Details) | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2017CNY (¥) | |
Change in Contract with Customer, Asset [Abstract] | |||||
Gross amount at the beginning of the period | ¥ 26,781,689 | ¥ 18,985,847 | ¥ 20,021,820 | ||
Increases due to revenue recognized during the period | 53,180,927 | 62,994,291 | 53,536,894 | ||
Transfers to accounts receivables during the period | (38,430,939) | (55,198,449) | (54,572,867) | ||
Gross amount at the end of the period | 41,531,677 | 26,781,689 | 18,985,847 | ||
Allowance for contract assets | (5,224,203) | (1,531,970) | (949,292) | ¥ (1,001,091) | |
Contract assets, net | ¥ 36,307,474 | ¥ 25,249,719 | ¥ 18,036,555 | $ 5,564,364 |
REVENUE INFORMATION - Movement
REVENUE INFORMATION - Movement of the allowance for contract assets (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Contract with Customer, Asset [Abstract] | |||
Balance at the beginning of the period | ¥ 1,531,970 | ¥ 949,292 | ¥ 1,001,091 |
Additions charged to (reversal of) bad debt expense | 3,692,233 | 582,678 | (51,799) |
Balance at the end of the period | ¥ 5,224,203 | ¥ 1,531,970 | ¥ 949,292 |
REVENUE INFORMATION - Changes_2
REVENUE INFORMATION - Changes in the contract liabilities balances (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Change in Contract with Customer, Liability [Abstract] | ||||
Balance at the beginning of the period | ¥ 111,953,381 | ¥ 98,417,522 | ¥ 74,361,332 | |
Revenue recognized that was included in the contract liabilities balance at the beginning of the year | (81,807,185) | (84,099,618) | (67,051,465) | |
Increase due to cash received, excluding amount recognised as revenue during the year | 65,846,493 | 97,635,477 | 91,107,655 | |
Balance at the end of the period | ¥ 95,992,689 | $ 14,711,523 | ¥ 111,953,381 | ¥ 98,417,522 |
REVENUE INFORMATION - Revenue r
REVENUE INFORMATION - Revenue recognised (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Contract with Customer, Liability [Abstract] | |||
Revenue recognised that was included in the contract liabilities balance at the beginning of the year | ¥ 81,807,185 | ¥ 84,099,618 | ¥ 67,051,465 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | |||
Rental expenses | ¥ 23,563,373 | ¥ 19,386,322 | ¥ 17,687,924 |
Future minimum lease commitments | |||
2021 | 22,225,857 | ||
2022 | 18,649,509 | ||
2023 | ¥ 4,551,612 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended | ||||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jan. 31, 2021CNY (¥) | Jan. 14, 2021CNY (¥) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||||
Interest free loans provided | ¥ 3,950,000 | $ 605,364 | ¥ 4,000,000 | ||||
Interest free loans collected | 4,160,000 | $ 637,548 | ¥ 310,000 | 3,180,000 | |||
Advance amount | 6,275,229 | 6,445,606 | $ 961,721 | ||||
Amounts due to a related party (including amounts due to a related party of VIE without recourse to the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020, respectively) | 2,813,041 | 3,180,095 | $ 431,117 | ||||
Revenues, related parties amounts | 25,681,928 | 38,280,256 | 38,524,686 | ||||
Accounts receivables, - third parties, net | 9,447,148 | 12,501,982 | |||||
Cost of revenues, related parties amounts | 386,321 | 7,901,958 | 1,287,644 | ||||
Beijing Puhui Sizhong Technology Limited Company | |||||||
Related Party Transaction [Line Items] | |||||||
Rental expenses paid | 150,000 | 100,000 | 130,000 | ||||
Advance amount | 1,439,623 | ||||||
Three management employees | |||||||
Related Party Transaction [Line Items] | |||||||
Interest free loans provided | 2,550,000 | 0 | 4,000,000 | ||||
Interest free loans collected | 4,160,000 | 310,000 | 3,180,000 | ||||
Advance amount | 900,000 | 2,510,000 | |||||
Amounts due to a related party (including amounts due to a related party of VIE without recourse to the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020, respectively) | ¥ 900,000 | ||||||
Jingu | |||||||
Related Party Transaction [Line Items] | |||||||
Interest free loans provided | 1,400,000 | ||||||
Advance amount | 1,400,000 | ||||||
Amounts due to a related party (including amounts due to a related party of VIE without recourse to the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020, respectively) | ¥ 1,400,000 | ||||||
Sublease Income | 316,981 | ||||||
Cost of revenues, related parties amounts | 39,623 | ||||||
Hi Sun Technology (China) Limited | |||||||
Related Party Transaction [Line Items] | |||||||
Advance amount | 3,935,606 | 3,935,606 | |||||
Amounts due to a related party (including amounts due to a related party of VIE without recourse to the Company of RMB3,180,095 and RMB2,813,041 as of December 31, 2019 and 2020, respectively) | 2,813,041 | 3,180,095 | |||||
Revenues, related parties amounts | 25,681,928 | 38,280,256 | 38,524,686 | ||||
Accounts receivables, - third parties, net | 9,447,148 | 12,501,982 | |||||
Deposits included in prepayments and other current assets, related parties amount | 3,935,606 | 3,935,606 | |||||
Cost of revenues, related parties amounts | 386,321 | 7,901,958 | ¥ 1,287,644 | ||||
Research and development services, related parties amount | 6,006,664 | ||||||
Accounts payable, related parties amount | ¥ 2,813,041 | ¥ 3,180,095 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Related Party Balance (Detail) | Jan. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Related Party Transaction [Line Items] | ||||
Accounts receivable-related party, net | ¥ 9,447,148 | $ 1,447,839 | ¥ 12,501,982 | |
Amounts due from related parties | 6,275,229 | 961,721 | 6,445,606 | |
Amounts due to related parties | 2,813,041 | $ 431,117 | 3,180,095 | |
Three management employees | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties | 900,000 | 2,510,000 | ||
Amounts due to related parties | ¥ 900,000 | |||
Hi Sun Technology (China) Limited | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable-related party, net | 9,447,148 | 12,501,982 | ||
Amounts due from related parties | 3,935,606 | 3,935,606 | ||
Amounts due to related parties | 2,813,041 | ¥ 3,180,095 | ||
Beijing Puhui Sizhong Technology Limited Company | ||||
Related Party Transaction [Line Items] | ||||
Amounts due from related parties | ¥ 1,439,623 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Jan. 07, 2021USD ($)shares | Jan. 01, 2021USD ($)$ / sharesshares | Jan. 01, 2021CNY (¥)shares | Nov. 13, 2020USD ($)shares | Jan. 31, 2021CNY (¥)shares | Jul. 31, 2020shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Novo Investment HK Limited | |||||||||
Subsequent Event [Line Items] | |||||||||
Exercise price of warrants exercised | $ | $ 34,000,000 | ||||||||
Series F Redeemable Convertible Preferred Shares | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of shares issued upon exercise of warrants | 11,799,685 | ||||||||
Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | |||||||||
Subsequent Event [Line Items] | |||||||||
Exercise price of warrants exercised | $ | $ 34,000,000 | ||||||||
Number of shares issued upon exercise of warrants | 11,799,685 | 11,799,685 | |||||||
Subsequent event | Series F Redeemable Convertible Preferred Shares | Novo Investment HK Limited | |||||||||
Subsequent Event [Line Items] | |||||||||
Exercise price of warrants exercised | $ | $ 34,000,000 | ||||||||
Number of shares issued upon exercise of warrants | 11,799,685 | ||||||||
Subsequent event | Cloopen Japan | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity interest obtained | 45.00% | ||||||||
Share options | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of share options granted | 4,025,499 | 4,025,499 | |||||||
Weighted average exercise price, granted | $ / shares | $ 0.248 | ||||||||
Share-based compensation expenses | $ 31,500,000 | ¥ 205,400,000 | ¥ 18,157,866 | ¥ 12,328,148 | ¥ 5,388,241 | ||||
Share options | Minimum | |||||||||
Subsequent Event [Line Items] | |||||||||
Requisite service period | 3 years | 3 years | |||||||
Share options | Maximum | |||||||||
Subsequent Event [Line Items] | |||||||||
Requisite service period | 4 years | 4 years | |||||||
Ordinary Shares | |||||||||
Subsequent Event [Line Items] | |||||||||
Share-based compensation expenses | ¥ | ¥ 5,071,378 | ||||||||
Purchase of the non-controlling interests of the Group's subsidiaries | 3,501,087 | ||||||||
Ordinary Shares | Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Share-based compensation expenses | ¥ | ¥ 21,500,000 | ||||||||
Purchase of the non-controlling interests of the Group's subsidiaries | 1,424,312 |
SUBSEQUENT EVENTS- Initial publ
SUBSEQUENT EVENTS- Initial public offering (Details) - 1 months ended Feb. 28, 2021 - Subsequent event $ / shares in Units, $ in Millions, ¥ in Billions | USD ($)$ / sharesshares | CNY (¥)shares |
Subsequent Event [Line Items] | ||
Number of preferred shares converted to class A ordinary shares | 158,900,014 | 158,900,014 |
Number of pre-offering ordinary shares converted to class A ordinary shares | 95,140,749 | 95,140,749 |
Number of pre-offering ordinary shares converted to class B ordinary shares | 25,649,839 | 25,649,839 |
Conversion ratio | 1 | 1 |
IPO | ||
Subsequent Event [Line Items] | ||
Number of ADS shares issued | 23,000,000 | 23,000,000 |
Net proceeds from issuance of initial public offering | $ 342.2 | ¥ 2.2 |
Issue price per share | $ / shares | $ 16 | |
Number of ordinary shares per ADS | 2 | 2 |
Number of preferred shares converted to class A ordinary shares | 158,900,014 | 158,900,014 |
Conversion ratio | 1 | 1 |
SUBSEQUENT EVENTS- Acquisition
SUBSEQUENT EVENTS- Acquisition of EliteCRM (Details) - EliteCRM - Subsequent event - CNY (¥) ¥ in Millions | Mar. 10, 2021 | Dec. 31, 2021 |
Subsequent Event [Line Items] | ||
Total cash consideration | ¥ 180 | |
Payment of cash consideration | ¥ 126 | ¥ 54 |
Ordinary shares issued in business acquisition | 2,411,177 | |
Business acquisition interest paid | 70.00% | |
Vesting period | 2 years |
SUBSEQUENT EVENTS- Exercise of
SUBSEQUENT EVENTS- Exercise of Warrants (Details) - Series C Redeemable Convertible Preferred Shares - $ / shares | Mar. 22, 2021 | Dec. 31, 2019 | Sep. 23, 2016 |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Number of shares issued upon exercise of warrants | 664,611 | ||
Number of warrants exercised | 26,042 | ||
Exercise price per share | $ 0.9404 | ||
Series C warrants | |||
Subsequent Event [Line Items] | |||
Number of shares issued upon exercise of warrants | 638,569 | ||
China Equities HK Limited | |||
Subsequent Event [Line Items] | |||
Number of shares issued upon exercise of warrants | 661,376 | 661,376 | |
Exercise price per share | $ 0.945 |
PARENT ONLY FINANCIAL INFORMA_3
PARENT ONLY FINANCIAL INFORMATION (Details) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets | |||||
Cash | ¥ 296,565,209 | $ 45,450,607 | ¥ 164,118,081 | ||
Term deposits | 160,349,418 | 24,574,623 | 69,762,000 | ||
Total current assets | 878,987,833 | 134,710,780 | 601,178,479 | ||
Noncurrent assets: | |||||
Total non-current assets | 89,474,408 | 13,712,552 | 66,253,651 | ||
Total assets | 968,462,241 | 148,423,332 | 667,432,130 | ||
Current liabilities | |||||
Accrued expenses and other current liabilities | 93,967,456 | 14,401,143 | 68,768,498 | ||
Warrant liabilities | 202,271,900 | 30,999,525 | |||
Total current liabilities | 776,731,068 | 119,039,244 | 359,568,047 | ||
Non-current liabilities | |||||
Non-current warrant liabilities | 19,470,302 | 2,983,954 | 19,631,027 | ||
Total non-current liabilities | 19,470,302 | 2,983,954 | 115,821,390 | ||
Total liabilities | 796,201,370 | 122,023,198 | 475,389,437 | ||
Mezzanine equity | |||||
Total mezzanine equity | 4,875,825,761 | 747,252,990 | 1,444,141,422 | ¥ 1,077,924,351 | ¥ 755,224,412 |
Shareholders' deficit: | |||||
Subscription receivables | (23,219,901) | ||||
Accumulated other comprehensive income (loss) | 208,672,218 | 31,980,417 | (72,548,649) | ||
Accumulated deficit | (4,914,644,309) | (753,202,193) | (1,140,572,830) | ||
Total shareholders' deficit | (4,703,564,890) | (720,852,856) | (1,252,098,729) | (942,654,335) | (627,868,759) |
Total liabilities, mezzanine equity and shareholders' deficit | 968,462,241 | 148,423,332 | 667,432,130 | ||
Series A Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 648,327,522 | 99,360,540 | 183,371,326 | ||
Series B Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 686,082,312 | 105,146,714 | 212,123,212 | ||
Series C Redeemable Convertible Preferred Stock | |||||
Current liabilities | |||||
Amounts due to VIE | 230,086,500 | 0 | |||
Mezzanine equity | |||||
Total mezzanine equity | 1,579,397,468 | 242,053,252 | 613,766,867 | ||
Series D Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 444,789,375 | 68,166,954 | 205,776,240 | ||
Series E Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 720,043,550 | 110,351,502 | 229,103,777 | ||
Series F Redeemable Convertible Preferred Shares | |||||
Mezzanine equity | |||||
Total mezzanine equity | 1,133,364,034 | 173,695,637 | |||
Class A ordinary shares | |||||
Shareholders' deficit: | |||||
Pre-offering Ordinary Shares | 28,592 | 4,382 | 23,519 | ||
Total shareholders' deficit | 28,592 | 4,382 | 23,519 | 23,519 | 23,519 |
Class B ordinary Shares | |||||
Shareholders' deficit: | |||||
Pre-offering Ordinary Shares | 33,348 | 5,111 | 33,348 | ||
Total shareholders' deficit | 33,348 | 5,111 | 33,348 | ¥ 33,348 | ¥ 33,348 |
Series C and Series E Redeemable Convertible Preferred Shares | |||||
Mezzanine equity | |||||
Subscription receivables | 336,178,500 | $ 51,521,609 | |||
Parent | |||||
Current assets | |||||
Cash | 1,144,361 | 355,008 | |||
Term deposits | 160,349,418 | ||||
Other current assets | 358,925 | 17,409 | |||
Total current assets | 161,852,704 | 372,417 | |||
Noncurrent assets: | |||||
Investments in and amounts due from subsidiaries and consolidated VIE and VIE's subsidiaries | 465,440,853 | 227,116,226 | |||
Total non-current assets | 465,440,853 | 227,116,226 | |||
Total assets | 627,293,557 | 227,488,643 | |||
Current liabilities | |||||
Amounts due to VIE | 230,086,500 | ||||
Accrued expenses and other current liabilities | 5,549,245 | 707 | |||
Warrant liabilities | 202,271,900 | ||||
Total current liabilities | 437,907,645 | 707 | |||
Non-current liabilities | |||||
Non-current warrant liabilities | 19,470,302 | 19,631,027 | |||
Total non-current liabilities | 19,470,302 | 19,631,027 | |||
Total liabilities | 457,377,947 | 19,631,734 | |||
Mezzanine equity | |||||
Total mezzanine equity | 4,875,825,761 | 1,444,141,422 | |||
Shareholders' deficit: | |||||
Subscription receivables | (23,219,901) | ||||
Accumulated other comprehensive income (loss) | 208,672,218 | (72,548,649) | |||
Accumulated deficit | (4,914,644,309) | (1,140,572,830) | |||
Total shareholders' deficit | (4,705,910,151) | (1,236,284,513) | |||
Total liabilities, mezzanine equity and shareholders' deficit | 627,293,557 | 227,488,643 | |||
Parent | Series A Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 648,327,522 | 183,371,326 | |||
Parent | Series B Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 686,082,312 | 212,123,212 | |||
Parent | Series C Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 1,579,397,468 | 613,766,867 | |||
Parent | Series D Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 444,789,375 | 205,776,240 | |||
Parent | Series E Redeemable Convertible Preferred Stock | |||||
Mezzanine equity | |||||
Total mezzanine equity | 720,043,550 | 229,103,777 | |||
Parent | Series F Redeemable Convertible Preferred Shares | |||||
Mezzanine equity | |||||
Total mezzanine equity | 1,133,364,034 | ||||
Parent | Class A ordinary shares | |||||
Shareholders' deficit: | |||||
Pre-offering Ordinary Shares | 28,592 | 23,519 | |||
Parent | Class B ordinary Shares | |||||
Shareholders' deficit: | |||||
Pre-offering Ordinary Shares | 33,348 | ¥ 33,348 | |||
Parent | Series C and Series E Redeemable Convertible Preferred Shares | |||||
Mezzanine equity | |||||
Subscription receivables | ¥ 336,178,500 |
PARENT ONLY FINANCIAL INFORMA_4
PARENT ONLY FINANCIAL INFORMATION - Condensed Statements of Comprehensive Loss (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Total operating expenses | ¥ (590,276,869) | $ (90,463,889) | ¥ (443,250,063) | ¥ (362,878,288) |
Change in fair value of warrant liabilities | (221,462,056) | (33,940,545) | 137,969 | (450,083) |
Share of losses from subsidiaries and consolidated VIE and VIE's subsidiaries | (2,446,221) | (374,900) | (14,592) | (546,530) |
Loss before income taxes | (498,215,704) | (76,354,898) | (182,841,751) | (152,793,150) |
Income tax expense | 1,623,961 | 248,883 | 652,610 | 2,672,098 |
Net loss | (3,839,489,657) | (588,427,535) | (324,526,304) | (262,332,401) |
Accretion and modifications of Redeemable Convertible Preferred Shares | (3,327,579,958) | (141,031,943) | (106,867,153) | |
Deemed dividends to Series E Redeemable Convertible Preferred Shareholders | (12,070,034) | (1,849,814) | ||
Net loss attributable to ordinary shareholders | (3,831,831,888) | $ (587,253,931) | (315,833,726) | (246,112,580) |
Parent | ||||
Total operating expenses | (108,331,537) | (38,552,132) | (7,618,417) | |
Change in fair value of warrant liabilities | (221,462,056) | 137,969 | (450,083) | |
Share of losses from subsidiaries and consolidated VIE and VIE's subsidiaries | (170,046,072) | (145,080,198) | (147,396,748) | |
Loss before income taxes | (499,839,665) | (183,494,361) | (155,465,248) | |
Net loss | (499,839,665) | (183,494,361) | (155,465,248) | |
Accretion and modifications of Redeemable Convertible Preferred Shares | (3,327,579,958) | (141,031,943) | (106,867,153) | |
Deemed dividends to Series E Redeemable Convertible Preferred Shareholders | (12,070,034) | |||
Net loss attributable to ordinary shareholders | ¥ (3,839,489,657) | ¥ (324,526,304) | ¥ (262,332,401) |
PARENT ONLY FINANCIAL INFORMA_5
PARENT ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Net cash used in operating activities | ¥ (224,118,705) | $ (34,347,694) | ¥ (166,384,556) | ¥ (160,617,731) |
Net cash provided by / (used in) investing activities | (95,707,473) | (14,667,811) | (84,502,265) | 2,047,948 |
Net cash provided by financing activities | 457,641,336 | 70,136,603 | 325,409,445 | 165,410,731 |
Effect of foreign currency exchange rate changes on cash | (3,669,576) | (562,388) | 2,866,654 | 7,821,409 |
Net increase in cash and restricted cash | 134,145,582 | 20,558,710 | 77,389,278 | 14,662,357 |
Cash and restricted cash at the beginning of the year | 164,313,081 | 25,182,081 | 86,923,803 | 72,261,446 |
Cash and restricted cash at the end of the year | 298,458,663 | $ 45,740,791 | 164,313,081 | 86,923,803 |
Parent | ||||
Net cash used in operating activities | (1,221,553) | (3,038,499) | (268,540) | |
Net cash provided by / (used in) investing activities | (597,733,655) | (218,538,384) | (154,188,532) | |
Net cash provided by financing activities | 601,198,643 | 215,232,018 | 159,782,892 | |
Effect of foreign currency exchange rate changes on cash | (1,454,082) | (10,038) | 550,960 | |
Net increase in cash and restricted cash | 789,353 | (6,354,903) | 5,876,780 | |
Cash and restricted cash at the beginning of the year | 355,008 | 6,709,911 | 833,131 | |
Cash and restricted cash at the end of the year | ¥ 1,144,361 | ¥ 355,008 | ¥ 6,709,911 |