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

Leases

Leases

12 Months Ended

Dec. 31, 2022

(10)

LEASES

The primary leases that the Group entered into were for training centers and office spaces. Certain leases include renewal options and/or termination options, which are factored into the Group’s determination of lease payments when appropriate.

As of December 31, 2021, the Company has 33 operating leases for training center and office spaces with remaining terms expiring from 1 through 55

months

and a weighted average remaining lease term of 3.08 years. Weighted average discount rates used in the calculation of the lease liability is 6.63%. As of December 31, 2022, the Company has 29 operating leases for training center and office spaces with remaining terms expiring from 1 through 66

months

and a weighted average remaining lease term of 2.79 years. Weighted average discount rates used in the calculation of the lease liability is 6.57%. 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.

Operating lease costs for the years ended December 31, 2020, 2021 and 2022 were RMB

22,998,535, RMB 21,599,937 and RMB 18,456,989

, respectively, which excluded cost of short-term contracts. Short-term lease expense, with a lease term of 12 months or less, for the years ended December 31, 2020, 2021 and 2022 were RMB 6,112,893, RMB 3,248,285 and RMB 3,412,129, respectively. Short-term lease commitments as of December 31, 2022 was RMB1,491,306. There were

variable lease costs or sublease income for leased assets for the years ended December 31, 2020, 2021 and 2022.

The impact of ASC 842 on the consolidated balance sheets as of December 31, 2021 and 2022 was as follows:


	December 31,		December 31,
	2021		2022
	RMB		RMB
Operating leases:
Right-of-use assets		42,417,409		37,616,541
Lease liabilities-current		17,351,427		16,920,429
Lease liabilities-non-current		23,365,840		19,528,763

Other information related to leases is presented below:


	Year ended December 31,
	2020		2021		2022
	RMB		RMB		RMB
Supplemental cash flow information:
Cash paid for amounts included in measurement of operating leases liabilities		20,376,826		21,478,066		18,669,210
Lease liability arising from obtaining Right-of-use assets		33,360,187		16,132,735		14,628,975

Maturities

of lease liabilities under

non-cancellable

leases as of December 31, 2022 are as follows:


	Operating leases
	RMB
2023		17,522,664
2024		12,278,559
2025		7,766,713
2026		1,538,067
2027		707,828
Thereafter		128,696
Total undiscounted lease payments		39,942,527
Less: Imputed interest		(3,493,335	)
Total lease liabilities		36,449,192