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

Goodwill and Intangible Assets, Net (Tables)

v3.20.1
Goodwill and Intangible Assets, Net (Tables)
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Schedule of Change in the Carrying Amount of Goodwill

The change in the carrying amount of goodwill is as follows:

 

 

 

RMB

 

Balance as of December 31, 2017

 

 

32,009,025

 

Less: Disposal of discontinued operations (Note 26)

 

 

(32,009,025

)

Balance as of December 31, 2018

 

 

Add: Acquisition of Huanqiuyimeng

 

 

200,478,795

 

Balance as of December 31, 2019

 

 

200,478,795

 

Summary of Company's Intangible Assets

The following table summarizes the Company’s intangible assets, as of December 31, 2018 and 2019.

 

 

 

December 31, 2018

 

 

 

Gross

carrying

amount

 

 

Accumulated

amortization

/deduction

 

 

Impairment

 

 

Net

carrying

amount

 

 

Weighted

average

amortization

period

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

RMB

 

 

Years

 

Education assessment caseware (i)

 

 

9,251,887

 

 

 

(2,430,708

)

 

 

 

 

 

6,821,179

 

 

 

5

 

Software platform of Project Shuang Chuang (ii)

 

 

10,844,339

 

 

 

(542,940

)

 

 

 

 

 

10,301,399

 

 

 

5

 

Total intangible assets

 

 

20,096,226

 

 

 

(2,973,648

)

 

 

 

 

 

17,122,578

 

 

 

 

 

 

 

 

December 31, 2019

 

 

Gross

carrying

amount

 

Accumulated

amortization

/deduction

 

Impairment

 

Net

carrying

amount

 

Weighted

average

amortization

period

 

 

RMB

 

RMB

 

RMB

 

RMB

 

Years

Trademark (iii)

 

79,000,000

 

(3,291,667)

 

 

75,708,333

 

10

Non-compete arrangements (iii)

 

56,000,000

 

(3,888,889)

 

 

52,111,111

 

6

Order backlogs (iii)

 

4,000,000

 

(1,190,476)

 

 

2,809,524

 

1.4

Education assessment caseware (i)

 

9,251,887

 

(4,281,085)

 

 

4,970,802

 

5

Software platform of Project Shuang Chuang (ii)

 

10,844,339

 

(2,716,145)

 

(8,128,194)

 

 

5

Total intangible assets

 

159,096,226

 

(15,368,262)

 

(8,128,194)

 

135,599,770

 

 

(i)

Education assessment caseware is the test content purchased for the Company’s strategic K-12 academic assessment business, which includes three subjects of Literature, Mathematics and English over six grades of junior and senior high school.

(ii)

Software platform of Project Shuang Chuang is the software platform purchased from a third party for providing vocational assessment and training services that focuses on the innovation related competencies of college students.

 

As of December 31, 2019, the Company conducted impairment test on intangible assets and identified that no cash inflows nor feasibility use is anticipated from the intangible assets and other non-current assets recorded relating to the software platform developed under Project Shuang Chuang. As a result, RMB 8,932,439 of impairment loss relating to intangible assets and other non-current assets for software platform of Project Shuang Chuang was recognized for the year ended December 31, 2019. No impairment loss was recognized for the nine months ended December 31, 2017 and for the year ended December 31, 2018.

 

(iii)

Trademark, Non-compete arrangements and Order backlogs were recorded as a result of Huanqiuyimeng Acquisition. See note 3 for details.

Summary of Total Amortization Expense Recognized

Total amortization expense recognized for nine months ended December 31, 2017, the years ended December 31, 2018 and 2019 is allocated to the following expense items:

 

 

 

Nine months

ended

December 31

 

 

Twelve months

ended

December 31

 

 

Twelve months

ended

December 31

 

 

2017

 

 

2018

 

 

2019

 

 

RMB

 

 

RMB

 

 

RMB

Cost of revenues

 

 

753,114

 

 

 

1,468,726

 

 

2,031,478

Sales and marketing

 

 

 

 

 

542,940

 

 

1,992,105

General and administrative

 

 

 

 

 

 

 

8,371,032

Total amortization expense

 

 

753,114

 

 

 

2,011,666

 

 

12,394,615

Schedule of Estimated Amortization Expense

As of December 31, 2019, the estimated amortization expense for the next five years is as follows:

 

 

 

December 31

 

 

 

RMB

 

2020

 

 

21,893,234

 

2021

 

 

19,083,711

 

2022

 

 

18,121,730

 

2023

 

 

17,614,984

 

2024

 

 

17,233,333