The changes in the carrying amount of goodwill for the years ended March 31, 2023 and 2024 were as follows:

In the second half of fiscal year 2023, the Covid-19 resurgence in certain areas of China and the market downturn impact on our operations caused a triggering event for possible impairment of goodwill. Together with other indicators such as history of net losses and low market capitalization of us, as a result, management concluded the existence of the impairment indicator which required the Company to perform a quantitative goodwill impairment test as of March 31, 2023. Since there is only one reporting unit in the Company, management used the market capitalization to determine the reporting unit’s fair value. Based on quantitative goodwill impairment test, the fair value of the reporting unit was RMB119.8 million, which was lower than the carrying value of our net assets of RMB 217.8 million as of March 31, 2023, hence a full impairment charge of RMB40.7 million was recognized during the year ended March 31, 2023.