| LEASE |
9. Lease
LEASE
The Group has entered into various non-cancellable
operating lease agreements for certain offices. The Group determines if an arrangement is a lease, or contains a lease, at inception and
record the leases in the financial statements upon lease commencement, which is the date when the underlying asset is made available for
use by the lessor.
The balances for the operating and finance leases
where the Group is the lessee are presented as follows within the consolidated balance sheet:
SCHEDULE OF BALANCES FOR THE OPERATING AND FINANCE LEASES
| Assets： | |
RMB(000) | | |
RMB(000) | | |
US$(000) | |
| | |
For the year ended December 31, | |
| Operating leases: | |
2023 | | |
2024 | |
| Assets： | |
RMB(000) | | |
RMB(000) | | |
US$(000) | |
| Right-of-use assets - operating lease | |
| 13,992 | | |
| 10,800 | | |
| 1,480 | |
| Liability： | |
| | | |
| | | |
| | |
| Current portion of operating lease liabilities | |
| 10,300 | | |
| 5,843 | | |
| 801 | |
| Non-current operating lease liabilities | |
| 2,164 | | |
| 4,731 | | |
| 648 | |
| Total operating lease liabilities | |
| 12,464 | | |
| 10,574 | | |
| 1,449 | |
The components
of lease expenses were as follows:
SCHEDULE
OF COMPONENTS OF LEASE EXPENSES
| Lease Cost | |
RMB(000) | | |
RMB(000) | | |
US$(000) | |
| | |
For the year ended December 31, | |
| | |
2023 | | |
2024 | |
| Lease Cost | |
RMB(000) | | |
RMB(000) | | |
US$(000) | |
| Amortization of right-of-use assets | |
| 14,437 | | |
| 9,769 | | |
| 1,338 | |
| Interest of operating lease liabilities | |
| 3,210 | | |
| 2,719 | | |
| 373 | |
| Expenses for short-term leases within 12 months and other non-lease component | |
| 2,022 | | |
| 1,281 | | |
| 175 | |
| Total lease cost | |
| 19,669 | | |
| 13,769 | | |
| 1,886 | |
As of December 31, 2023 and 2024, the weighted average
remaining lease term was 1.28 and 2.32 years and weighted average discount rate was 5.49% and 5.93% for the Company’s operating
leases.
For the year
ended December 31, 2022, 2023 and 2024, the Company recognized lease expense of RMB26,954, RMB19,669
and RMB13,769, respectively, under ASC 840.
Supplemental
cash flow information related to leases where we are the lessee is as follows:
SCHEDULE
OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES
| | |
For the year ended December 31, | |
| | |
2023 | | |
2024 | |
| | |
RMB(000) | | |
RMB(000) | | |
US$(000) | |
| Cash payments for operating leases | |
| 20,582 | | |
| 14,331 | | |
| 1,963 | |
| ROU assets obtained in exchange for operating lease liabilities | |
| 7,825 | | |
| 11,634 | | |
| 1,594 | |
As of Dec 31, 2024, the maturities
of our operating are as follows:
SCHEDULE
OF OPERATING LEASE MATURITIES
| Year ending December 31. | |
RMB(000) | | |
US$(000) | |
| | |
Operating Lease | |
| Year ending December 31. | |
RMB(000) | | |
US$(000) | |
| 2025 | |
| 7,849 | | |
| 1,075 | |
| 2026 | |
| 4,219 | | |
| 578 | |
| 2027 | |
| 1,321 | | |
| 181 | |
| Total future lease payments | |
| 13,389 | | |
| 1,834 | |
| Less: Imputed interest | |
| 2,815 | | |
| 385 | |
| Total lease liability balance | |
| 10,574 | | |
| 1,449 | |
As of Dec 31,
2023, the maturities of our operating are as follows:
| Year ending December 31. | |
RMB | | |
US$ | |
| | |
Operating Lease | |
| Year ending December 31. | |
RMB | | |
US$ | |
| 2024 | |
| 11,255 | | |
| 1,585 | |
| 2025 | |
| 2,320 | | |
| 327 | |
| Total future lease payments | |
| 13,575 | | |
| 1,912 | |
| Less: Imputed interest | |
| 1,111 | | |
| 156 | |
| Total lease liability balance | |
| 12,464 | | |
| 1,756 | |
|