| Segment reporting |
Note 12 — Segment reporting ASC Topic 280, Segment Reporting, establishes standards for reporting information about operating segments on a basis consistent with the Group’s internal organizational structure, as well as information about geographical areas, business segments and major customers in financial statements for details on the Group’s business segments. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”), the Chief Executive Officer, Mr. Yuan Li, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance. The Group primarily offers (i) one-stop comprehensive adult education supporting services, (ii) safety technology training services, (iii) online course services and (iv) customized equipment sales. Based on the management’s assessment, the Group determined that it operates in four segments: (i) one-stop comprehensive adult education supporting services, (ii) safety technology training services, (iii) online course services and (iv) customized equipment sales. The Group evaluates the performance of each operating segment based on several factors, of which the primary financial measures are operating segment profit or loss, as shown in the table below. The table below provides a summary of the Group’s reportable segment information for the six months ended June 30, 2026: | | | | | | | | | | | | | | | For the six months ended June 30, 2026 | | | Adult | | Safety | | | | | | | | | | | education | | technology | | Online | | Customized | | | | | | | supporting | | training | | course | | equipment | | | | | | | services | | services | | services | | sales | | Consolidation | | | RMB | | RMB | | RMB | | RMB | | RMB | | US$ | Revenue | | 5,074,720 | | 2,290,080 | | 66,081 | | 843,337 | | 8,274,218 | | 1,219,469 | Operating costs and expenses | | 8,694,437 | | 2,165,194 | | 1,099,371 | | 622,179 | | 12,581,181 | | 1,854,237 | Segment profit (loss) | | (3,619,717) | | 124,886 | | (1,033,290) | | 221,158 | | (4,306,963) | | (634,768) | Unallocated (1): | | | | | | | | | | | | | Other operating expenses | | | | | | | | | | (48,304,434) | | (7,119,193) | Other income | | | | | | | | | | 1,207,036 | | 177,895 | Loss before income taxes | | | | | | | | | | (51,404,361) | | (7,576,066) | | | | | | | | | | | | | | Long-lived assets | | 6,685,101 | | 77,828,875 | | 28,769,182 | | — | | 113,283,158 | | 16,695,872 | Goodwill | | 4,152,740 | | 13,923,883 | | 7,693,654 | | 780,020 | | 26,550,297 | | 3,913,030 | Current assets | | 11,436,157 | | 6,533,609 | | 25,070,945 | | 241,060 | | 43,281,771 | | 6,378,944 | Unallocated current assets (2) | | | | | | | | | | 52,599,860 | | 7,752,260 | Consolidated total assets | | | | | | | | | | 235,715,086 | | 34,740,106 |
| (1) | The unallocated items consist of staff costs including share-based compensation at headquarters, legal and professional fee and other expenses. |
| (2) | The asset categories reviewed by CODM consist of long-lived assets and current assets. Assets are allocated to each segment based on operations or their physical location. The unallocated current assets include cash and cash equivalent and other receivables attributable to headquarter operations. |
Note 12 — Segment reporting (continued) | | | | | | | | | | | For the six months ended June 30, 2025 | | | Adult | | Safety | | | | | | | education | | technology | | Online | | | | | supporting | | training | | course | | | | | services | | services | | services | | Consolidation | | | RMB | | RMB | | RMB | | RMB | Revenue | | 5,671,628 | | 3,503,890 | | 208,072 | | 9,383,590 | Operating costs and expenses | | 8,074,541 | | 2,796,046 | | 330,189 | | 11,200,776 | Segment profit (loss) | | (2,402,913) | | 707,844 | | (122,117) | | (1,817,186) | Unallocated (3): | | | | | | | | | Other operating expenses | | | | | | | | (3,299,139) | Other income | | | | | | | | 573,182 | Loss before income taxes | | | | | | | | (4,543,143) | | | | | | | | | | Long-lived assets | | 7,600,769 | | 442,498 | | 11,481,132 | | 19,524,399 | Goodwill | | 13,318,789 | | 5,587,375 | | 7,644,133 | | 26,550,297 | Current assets | | 25,425,006 | | 11,392,629 | | — | | 36,817,635 | Unallocated current assets (4) | | | | | | | | 2,344,813 | Consolidated total assets | | | | | | | | 85,237,144 |
| (3) | The unallocated items consist of staff costs at headquarters, legal and professional fee and other expenses. |
| (4) | The asset categories reviewed by CODM consist of long-lived assets and current assets. Assets are allocated to each segment based on operations or their physical location. The unallocated current assets include cash and cash equivalent and other receivables attributable to headquarter operations. |
The accounting policies of the operating segments are the same as the Group’s accounting policies described in note 2. Segment profit (loss) represents the profit or loss earned from each segment without allocation of certain other operating expenses and other income. This is the measure reported to the CODM for the purposes of resource allocation and performance assessment. The Group generates substantially all of its revenue from clients in China. Accordingly, no geographical segments are presented. Substantially majority of the Group’s long-lived assets are located in China.
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