Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Leases

v3.20.1
Leases
12 Months Ended
Dec. 31, 2019
Lessee Disclosure [Abstract]  
Leases

(10)

LEASES

 

The Company adopted new lease accounting standards ASC 842 since January 1, 2019. The primary leases that the Group entered into were for training center and office spaces.

Information as of and for the year ended December 31, 2019:

As of December 31, 2019, the Company has 61 operating leases for training center and office spaces with remaining terms expiring from 2 through 39 months and a weighted average remaining lease term of 1.67 years. Weighted average discount rates used in the calculation of the lease liability is 5.88%. The discount rates reflect the estimated incremental borrowing rate, which includes an assessment of the credit rating to determine the rate that the Company would have to pay to borrow, on a collateralized basis for a similar term, an amount equal to the lease payments in a similar economic environment.

Rent expense for the year ended December 31, 2019 was RMB13,903,991. There was no variable lease costs or sublease income for leased assets for the year ended December 31, 2019.

The impact of ASC 842 on the December 31, 2019 consolidated balance sheet was as follows:

 

 

 

 

December 31,

 

 

 

2019

 

 

 

RMB

Operating leases:

 

 

 

 

Right-of-use lease assets

 

 

 

40,786,291

Lease liabilities-current

 

 

 

20,556,017

Other non-current liabilities

 

 

 

12,500,120

 

  

Other information related to leases is presented below:

 

 

 

December 31,

 

 

2019

 

 

RMB

Supplemental cash flow information:

 

 

Cash paid for amounts included in measurement of operating leases liabilities

 

12,850,734

Right-of-use assets acquired in exchange for operating lease obligations

 

8,696,875

Right-of-use assets acquired in connection with Huanqiuyimeng Acquisition

  

32,089,416

Weighted average remaining lease term

 

1.67

Weighted average discount rate

 

5.88%

 

Maturities of lease liabilities under non-cancellable leases as of December 31, 2019 are as follows:

 

 

 

Operating leases

 

 

RMB

2020

 

21,869,242

2021

 

10,956,342

2022

 

2,601,561

2023

 

359,048

2024

 

Thereafter

 

Total undiscounted lease payments

 

35,786,193

Less: Imputed interest

 

(2,730,056)

Total lease liabilities

 

33,056,137

Amounts due within 12 months

 

20,556,017

Non-current lease liability

 

12,500,120

 

Short-term lease expense, with a lease term of 12 months or less, for the year ended December 31, 2019 was RMB 2,125,616 and short-term lease commitments as of December 31, 2019 are as follows:

 

 

 

Short-term Lease Commitments

Amount

 

 

RMB

Year ended December 31:

 

 

2020

 

1,506,677

 

 

1,506,677

 

Information as of and for the year ended December 31, 2018:

 

As previously disclosed in the consolidated financial statements for the year ended December 31, 2018 and under the previous lease standards (ASC 840), future minimum annual lease payments for the years subsequent to December 31, 2018 and in aggregate are as follows:

 

 

 

Minimum

 

 

Lease Payments
Amount

 

 

RMB

Year ended December 31:

 

 

2019

 

2,959,829

2020

 

346,745

2021

 

2022

 

2023

 

 

 

3,306,574

 

Rental expense for operating leases for nine months ended December 31, 2017 and the year ended December 31, 2018 were RMB 4,772,679 and RMB 2,717,234 respectively.