v3.25.2
Fair Value Measurements
 12 Months Ended
Mar. 31, 2024
Fair Value Measurements [Abstract]  
Fair value measurements
25.Fair value measurements

 

The Company measured its short-term investments, available-for-sale investments, equity securities with readily determinable fair values and derivative liabilities at fair value on a recurring basis. Equity securities classified within Level 1 are valued using quoted market prices that currently available on a securities exchange registered on NYSE American. Short-term investments classified within Level 2 are valued using directly or indirectly observable inputs in the marketplace. As the Company’s available-for-sale investments and derivative liabilities are not traded in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of available-for-sale investments and derivative liabilities. These instruments are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended March 31, 2022, 2023, and 2024.

The following table summarizes the Company’s financial assets and liabilities measured and recorded at fair value on recurring basis as of March 31, 2023 and 2024:

 

       Fair value measurement at reporting date using 
Description  Fair value
as of
March 31,
2023		   Quoted price in
active markets
for identical
assets (Level 1)		   Significant other
observable
Inputs
(Level 2)		   Significant
unobservable
Inputs (Level 3)		 
   RMB   RMB   RMB   RMB 
Assets:                
Short-term investments   69,797    
-
    69,797    
-
 
Available-for-sale debt investments   68,011    
-
    
-
    68,011 
Equity securities with readily determinable fair values   102    102    
-
    
-
 
Total assets   137,910    102    69,797    68,011 
                     
Liabilities:                    
Derivative liabilities   10,701    
-
    
-
    10,701 

 

   Fair value measurement at reporting date using 
Description  Fair value
as of
March 31,
2024		   Quoted price in
active markets
for identical
assets (Level 1)		   Significant
other observable
Inputs
(Level 2)		   Significant
unobservable
Inputs (Level 3)		 
   RMB   RMB   RMB   RMB 
Assets:                
Short-term investments   
-
    
-
    
      -
    
-
 
Available-for-sale debt investments   58,465    
-
    
-
    58,465 
Equity securities with readily determinable fair values   39    39    
-
    
-
 
Total assets   58,504    39    
-
    58,465 
                     
Liabilities:                    
Derivative liabilities   5,721    
-
    
-
    5,721 

The roll forward of major Level 3 investments are as following:

 

   Derivative
liabilities		   Available-
for-sale
debt
investments		 
         
Fair value of Level 3 investments as at March 31, 2021   9,996    71,357 
New addition   
-
    16,000 
Reclassification of forward exchange contracts   746    - 
Unrealized fair value change of the derivative liabilities   (1,656)   
-
 
Unrealized fair value change of the available-for-sale debt investments   
-
    (12,491)
Fair value of Level 3 investments as at March 31, 2022   9,086    74,866 
Reclassification of forward exchange contracts   (651)   
-
 
Unrealized fair value change of the derivative liabilities   2,266    - 
Unrealized fair value change of the available-for-sale debt investments   
-
    (6,427)
Disposal of available-for-sale debt investments   
-
    (428)
Fair value of Level 3 investments as at March 31, 2023   10,701    68,011 
Reclassification of forward exchange contracts   (6,014)     
Unrealized fair value change of the derivative liabilities   1,034    - 
Unrealized fair value change of the available-for-sale debt investments   -    (3,546)
Disposal of available-for-sale debt investments   
-
    (6,000)
Fair value of Level 3 investments as at March 31, 2024   5,721    58,465 

 

The Company determined the fair value of their investments by using equity allocation model, market approach and binomial model. The determination of the fair value was based on estimates, judgments and information of other comparable public companies. The significant unobservable inputs adopted in the valuation as of March 31, 2023 and 2024:

 

   As of
March 31,		  As of
March 31,
   2023  2024
       
Implied price to sales after discount for lack of marketability  1.04x  0.95x
Weighted average cost of capital 
n.a.
 
n.a.
Lack of marketability discount  20%  20%, 28%, 32%
Risk-free rate  2.60%, 2.31%, 2.19%  1.87%, 2.08%, 2.17%
Expected volatility  47.19%, 43.65%, 32.08%  41.55%, 43.47%, 45.49%
Probability  Liquidation scenario: 35%, 40%
Redemption scenario: 35%, 40%
IPO scenario: 30%, 20%		  Liquidation scenario: 40%, 35%
Redemption scenario: 40%, 35%
IPO scenario: 20%, 30%

 

The significant unobservable inputs used in the fair value measurement of the fair value of the investments include weighted average cost of capital, implied price to sales after discount for lack of marketability, lack of marketability discount, risk-free rate, expected volatility and probabilities of different scenarios. Significant increases in lack of marketability discount and risk-free rate would result in a significantly lower fair value measurement. Significant decreases in expected volatility would result in a significantly lower fair value measurement. If the probabilities of redemption and liquidation scenarios are assumed to keep equal, significant increases in the probability of IPO scenario would result in a significantly lower fair value measurement.

 

The Company determined the fair value of their derivative liabilities by using binominal model. The determination of the fair value was based on estimates, judgments and information of other comparable public companies. The significant unobservable inputs adopted in the valuation as of March 31, 2023 and 2024 are as follows:

 

   As of
March 31,		   As of
March 31,		 
   2023   2024 
         
Spot price (US$)   5.90    5.90 
Risk-free rate   3.83%   4.91%
Expected volatility   61.13%   58.28%
Expected expiry years (in years)   2.60    1.60 

The significant unobservable inputs used in the fair value measurement of the derivative liabilities include spot price, risk-free rate, expected volatility and expected expiry years. Significant decreases in spot price, risk-free rate, expected volatility and expected expiry years would result in a significantly lower fair value measurement.