BlueCity Holdings Ltd

CIK:0001791278|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS	12 Months Ended
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares	Dec. 31, 2019 CNY (¥) ¥ / shares shares
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Revenues	¥ 1,076,591,430	$ 168,940,688	¥ 1,031,323,444	¥ 758,887,906
Cost and expenses:
Cost of revenues	(728,065,167)	(114,249,312)	(720,370,586)	(546,211,172)
Selling and marketing expenses	(220,464,208)	(34,595,645)	(187,281,558)	(119,436,794)
Technology and development expenses	(219,741,246)	(34,482,197)	(149,255,609)	(129,651,820)
General and administrative expenses	(109,099,156)	(17,120,038)	(209,086,316)	(24,439,169)
Impairment of intangible assets	(2,915,000)	(457,427)	0	0
Impairment of goodwill	(106,949,249)	(16,782,671)
Total cost and expenses	(1,387,234,026)	(217,687,290)	(1,265,994,069)	(819,738,955)
Operating loss	(310,642,596)	(48,746,602)	(234,670,625)	(60,851,049)
Changes in fair value of financial instruments			(5,247)	(9,024,437)
Gain (loss) on disposal of an investment security	(50,000)	(7,846)	4,863,233
Gain on extinguishment of a convertible debt				8,986,048
Interest income	1,889,658	296,529	6,517,961	8,890,484
Loss before income taxes	(308,802,938)	(48,457,919)	(223,294,678)	(51,998,954)
Income tax (expense) benefit	(821,006)	(128,834)	1,441,814	(930,554)
Net loss	(309,623,944)	(48,586,753)	(221,852,864)	(52,929,508)
(Accretion) reversal of accretion and modification of Redeemable Convertible Preferred Shares to redemption value			244,080,678	(631,005,563)
Net (loss) income available for distribution	¥ (309,623,944)	$ (48,586,753)	¥ 22,227,814	¥ (683,935,071)
Net (loss) income per Class A and Class B Ordinary Share
-Basic \| (per share)	¥ (16.00)	$ (2.51)	¥ 1.30	¥ (121.81)
-Diluted \| (per share)	¥ (16.00)	$ (2.51)	¥ (14.63)	¥ (121.81)
Weighted average number of Class A and Class B Ordinary Share and ordinary share equivalents outstanding used in computing net (loss) income per Class A and Class B Ordinary Share
-Basic \| shares	19,352,595	19,352,595	11,974,046	5,614,840
-Diluted \| shares	19,352,595	19,352,595	15,208,426	5,614,840
Other comprehensive loss
Unrealized gains on an available-for-sale investment, net of nil income taxes			¥ 1,456,370	¥ 1,591,098
Reclassification adjustment for gains on available-for-sale investment realized in net income, net of nil income taxes			(4,863,233)
Foreign currency translation adjustment, net of nil income taxes	¥ (17,598,892)	$ (2,761,650)	(63,005,931)	(20,118,769)
Comprehensive loss	¥ (327,222,836)	$ (51,348,403)	¥ (288,265,658)	¥ (71,457,179)

CONSOLIDATED STATEMENTS OF CASH FLOWS	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Operating activities:
Net loss	¥ (309,623,944)	$ (48,586,753)	¥ (221,852,864)	¥ (52,929,508)
Adjustments to reconcile net loss to net cash used in operating activities
Allowance for doubtful accounts	682,085	107,034		592,717
Share-based compensation	15,911,144	2,496,806	186,903,431
Deferred income tax benefits	(2,167,099)	(340,065)	(2,495,332)
Depreciation and amortization	14,931,572	2,343,089	5,618,984	2,619,682
Impairment of intangible assets	2,915,000	457,427	0	0
Impairment of goodwill	106,949,249	16,782,671
Changes in fair value of financial instruments			5,247	9,024,437
Gain (loss) on disposal of an investment security	50,000	7,846	(4,863,233)
Gain on extinguishment of a convertible debt				(8,986,048)
Loss (gain) on disposal of property and equipment	432,298	67,837	(35,572)	15,765
Gain on disposal of a subsidiary	(917,251)	(143,937)
Unrealized foreign currency exchange (gain) losses			3,113,970	(750,270)
Changes in operating assets and liabilities, net of effect of acquisitions and disposal of a subsidiary:
Accounts receivable	(7,998,240)	(1,255,098)	(2,667,688)	7,679,995
Inventories	(548,307)	(86,041)	(6,853,202)
Prepayments and other current assets	(41,473,243)	(6,508,057)	(6,104,334)	(4,186,913)
Other non-current assets	(751,337)	(117,901)	(1,065,699)	(516,780)
Accounts payable	8,491,260	1,332,464	2,380,364	9,023,623
Amount due to a related party				(6,898,800)
Deferred revenue	4,252,823	667,361	(2,814,922)	8,787,345
Income tax payable	2,988,106	468,899	1,246,030	930,554
Accrued expenses and other current liabilities	(7,325,654)	(1,149,555)	9,182,914	3,952,391
Other non-current liabilities	2,300,000	360,920
Net cash used in operating activities	(210,901,538)	(33,095,053)	(40,301,906)	(31,641,810)
Investing activities:
Purchase of property and equipment	(7,004,705)	(1,099,191)	(7,471,486)	(5,881,767)
Proceeds from disposal of property and equipment	126,670	19,877	100,960
Purchase of term deposits			(841,183,485)	(82,061,210)
Proceeds from maturity of term deposits	170,857,260	26,811,232	741,124,785	373,537,111
Payment for asset acquisitions	(2,550,000)	(400,151)	(3,250,000)
Payment for business combinations, net of cash acquired of nil,RMB10,497,237 and nil in 2019, 2020 and 2021, respectively	(24,491,600)	(3,843,266)	(203,081,831)
Proceeds from disposal of financial instruments			25,023,165
Issuance of interest free loans to an employee	(1,600,000)	(251,075)
Disposal of a subsidiary, net of cash received	(4,985,220)	(782,290)
Net cash provided by (used in) investing activities	130,352,405	20,455,136	(288,737,892)	285,594,134
Financing activities:
Proceeds from issuance of Class A Ordinary Shares, net of underwriting commissions, discounts and underwriter's lawyer fee of RMB46,589,365			548,765,995
Payments for initial public offering ("IPO") costs			(45,286,456)	(2,252,291)
Repayment of a convertible debt				(20,000,000)
Issuance of interest free loans to a shareholder				(8,000,000)
Proceeds from repayment of interest free loans to a shareholder				8,000,000
Payment made on behalf of Mr. Baoli Ma			(4,722,814)
Proceeds from repayment made by Mr. Baoli Ma			4,722,814
Proceeds from exercising of share options	64,034	10,048
Net cash (used in) provided by financing activities	64,034	10,048	503,479,539	(22,252,291)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(9,222,065)	(1,447,143)	(32,220,775)	2,527,206
Net (decrease) increase in cash and cash equivalents	(89,707,164)	(14,077,012)	142,218,966	234,227,239
Cash and cash equivalents at the beginning of the year	439,492,788	68,966,009	297,273,822	63,046,583
Cash and cash equivalents at the end of the year	349,785,624	54,888,997	439,492,788	297,273,822
Supplemental cash flow information:
Interest paid	0	0	2,695,890	0
Income taxes paid	0	0	0	0
Non-cash investing and financing activities:
Accrual of IPO costs	0	0	0	6,227,056
Consideration payable in connection with business combinations	0	0	24,742,025	0
Automatic conversion of convertible redeemable preferred shares to Class A ordinary shares upon the IPO	0	0	1,500,748,518	0
Consideration receivable in connection with disposal of a subsidiary	¥ 300,000	$ 47,077	¥ 0	¥ 0

CONSOLIDATED BALANCE SHEETS	Dec. 31, 2021 CNY (¥)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 CNY (¥)
Current assets
Cash and cash equivalents	¥ 349,785,624	$ 54,888,997	¥ 439,492,788
Term deposits			172,257,360
Accounts receivable, net (net of allowance of nil as of December 31, 2020 and 2021, respectively)	12,878,562	2,020,927	5,588,023
Inventories	7,401,509	1,161,458	6,853,202
Prepayments and other current assets	99,777,088	15,657,202	58,629,416
Total current assets	469,842,783	73,728,584	682,820,789
Non-current assets
Investment securities			50,000
Property and equipment, net	11,186,159	1,755,352	11,445,548
Intangible assets, net	44,204,317	6,936,622	52,084,512
Goodwill	81,751,864	12,828,651	196,002,568
Other non-current assets	3,177,465	498,614	2,426,128
Total non-current assets	140,319,805	22,019,239	262,008,756
Total assets	610,162,588	95,747,823	944,829,545
Current liabilities
Accounts payable (including accounts payable of VIE without recourse to the Company of 6,817,776 and RMB11,444,579 as of December 31, 2020 and 2021, respectively)	28,507,188	4,473,400	20,372,680
Deferred revenue (including deferred revenue of VIE without recourse to the Company of RMB34,541,710 and RMB35,217,012 as of December 31, 2020 and 2021, respectively)	35,796,254	5,617,213	35,226,237
Income tax payable (including income tax payable of VIE without recourse to the Company of RMB291,441 and RMB1,460,149 as of December 31, 2020 and 2021, respectively)	5,047,173	792,012	2,122,765
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIE without recourse to the Company of RMB49,315,134 and RMB27,246,274 as of December 31, 2020 and 2021, respectively)	82,962,351	13,018,602	118,958,796
Total current liabilities	152,312,966	23,901,227	176,680,478
Non-current liabilities
Deferred income tax liabilities (including deferred income tax liabilities of VIE without recourse to the Company of 10,954,883 and RMB9,603,096 as of December 31, 2020 and 2021, respectively)	9,603,096	1,506,935	10,954,883
Other non-current liabilities (including other non-current liabilities of VIE without recourse to the Company of nil and RMB2,300,000 as of December 31, 2020 and 2021, respectively)	2,300,000	360,920
Total non-current liabilities	11,903,096	1,867,855	10,954,883
Total liabilities	164,216,062	25,769,082	187,635,361
Commitments and contingencies (Note 20)
SHAREHOLDERS' EQUITY:
Additional paid-in capital	2,204,845,216	345,988,328	2,188,870,625
Accumulated other comprehensive loss	(125,113,629)	(19,633,059)	(107,514,737)
Accumulated deficit	(1,633,797,666)	(256,378,506)	(1,324,173,722)
Total shareholders' equity	445,946,526	69,978,741	757,194,184
Total liabilities and shareholders' equity	610,162,588	95,747,823	944,829,545
Class A
SHAREHOLDERS' EQUITY:
Ordinary Shares	9,487	1,489	8,572
Class B
SHAREHOLDERS' EQUITY:
Ordinary Shares	¥ 3,118	$ 489	¥ 3,446