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

Income Taxes (Tables)

v3.23.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Loss from Continuing Operations before Income Taxes Generated in Jurisdictions
 
    
Year Ended December 31,
 
    
2020
    
2021
    
2022
 
    
RMB
    
RMB
    
RMB
 
Cayman Islands and British Virgin Islands
     (15,482,426      (18,488,181      (7,206,659
PRC
     (95,351,791      (19,442,469      (47,256,605
Hong Kong
     (19,367      (19,044      (52,351
    
 
 
    
 
 
    
 
 
 
Loss before income taxes
     (110,853,584      (37,949,694      (54,515,615
    
 
 
    
 
 
    
 
 
 
Schedule of Income Tax Expense (Benefit)
Income tax expense (benefit) recognized in the consolidated statements of comprehensive income (loss) consists of the following:
 
    
Year Ended December 31,
 
    
2020
    
2021
    
2022
 
    
RMB
    
RMB
    
RMB
 
PRC
                          
Current income tax expense
     14,402        22,781        130,635  
Deferred income tax benefit
     (10,283,238      (1,562,358      (6,052,019
    
 
 
    
 
 
    
 
 
 
Total income tax benefit
     (10,268,836      (1,539,577      (5,921,384
    
 
 
    
 
 
    
 
 
 
Schedule of Difference Between Actual Income Tax Expense and Amount Computed by Applying PRC Statutory Income Tax Rate to Earnings before Income Taxes
The actual income tax expense (benefit) reported in the consolidated statements of comprehensive income (loss) differs from the respective amount computed by applying the PRC statutory income tax rate of 25% for each of the years ended December 31, 2020, 2021 and 2022 to earnings before income taxes due to the following:


    
Year Ended December 31,
 
    
2020
    
2021
    
2022
 
    
RMB
    
RMB
    
RMB
 
Computed “expected” income tax expenses (benefit)
     (27,713,394      (9,487,423      (13,628,904
Increase in valuation allowance
     11,770,037        10,531,372        6,084,383  
Entities not subject to income tax
     3,445,048        1,691,406        1,429,868  
Non-deductible
expenses
                          
Entertainment
     226,312        280,436        192,298  
Share-based compensation
     444,196        259,993        364,939  
Other
non-deductible
expenses
     1,634,539        3,927,212       
1,625,037

 
Additional deduction of research and development costs
     (288,502      (120,598      —    
Disposal of equity interests in subsidiaries
     —          (8,385,539      (1,577,200
Other
     212,928        (236,436      (411,805
    
 
 
    
 
 
    
 
 
 
Actual income tax benefit
     (10,268,836      (1,539,577      (5,921,384
    
 
 
    
 
 
    
 
 
 
Schedule of Components of Deferred Income Tax Assets and Liabilities
The tax effects of the Group’s temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are as follows:
 
    
December 31,

2021
    
December 31,

2022
 
    
RMB
    
RMB
 
Deferred income tax assets:
                 
Tax loss carry forwards
     27,926,708        34,562,809  
Impairment and investment loss of long-term investments
     10,523,946        10,598,946  
Lease liabilities
     10,179,317        9,112,298  
Intangible assets and other
non-current
assets
     945,446        405,191  
Provision for loan receivable and other receivables
     1,887,015        2,927,994  
Accrued expenses and other payables
     2,818,170        3,652,004  
Property and equipment, net
     81,512        53,301  
Donation
     7,500,000        5,000,000  
 
  
 
 
 
  
 
 
 
Total gross deferred income tax assets
  
 
61,862,114
 
  
 
66,312,543
 
Less: valuation allowance
     (48,897,848      (51,769,696
    
 
 
    
 
 
 
Total deferred income tax assets, net
  
 
12,964,266
 
  
 
14,542,847
 
Deferred income tax liabilities:
                 
Intangible assets
     23,338,194        19,029,861  
Right-of-use
assets
     9,838,270        8,721,522  
Contract cost assets
     4,719,124        5,670,767  
 
  
 
 
 
  
 
 
 
Total gross deferred income tax liabilities
  
 
37,895,588
 
  
 
33,422,150
 
Net deferred income tax liabilities
  
 
24,931,322
 
  
 
18,879,303
 
Summary of Movements of Valuation Allowance
The movements of the valuation allowance are as follows:
 
    
Year Ended December 31,
 
    
2020
    
2021
    
2022
 
    
RMB
    
RMB
    
RMB
 
Balance at the beginning of the period
    
44,713,570
      
56,172,945
      
48,897,848
 
Additions
    
11,770,037
      
10,531,372
      
6,084,383
 
Reduction due to expiration of temporary difference
     —          —          (2,500,000
Reduction as a result of
deconsolidation of subsidiaries
    
(310,662
    
(17,806,469
    
(712,535
    
 
 
    
 
 
    
 
 
 
Balance at the end of the period
    
56,172,945
      
48,897,848
      
51,769,696