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Restricted Net Assets and Parent Company Only Condensed Financial Information

12 Months Ended

Jun. 30, 2024

Restricted Net Assets and Parent Company Only Condensed Financial Information [Abstract]

Restricted net assets and parent company only condensed financial information

24.

Restricted net assets and parent company only condensed financial information

The Group’s ability to pay dividends is primarily dependent on the Group receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s subsidiaries and the consolidated VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Group’s subsidiaries.

In accordance with the PRC laws and regulations, statutory reserve funds shall be made and can only be used for specific purposes and are not distributable as cash dividends. As a result of these PRC laws and regulations that require annual appropriations of 10% of net after-tax profits to be set aside prior to payment of dividends as general reserve fund or statutory surplus fund, the Group’s PRC subsidiaries and the consolidated VIE are restricted in their ability to transfer a portion of their net assets to the Company. The restricted portion was RMB109,419 as of June 30, 2024.

The Company performed a test on the restricted net assets of its subsidiaries and the consolidated VIEs (the “restricted net assets”) in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the condensed financial information for the parent company for the years ended June 30, 2022,2023 and 2024.

For the purpose of presenting parent only financial information, the Company records its investments in its subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investment in subsidiaries” and the (loss)/ income of the subsidiaries is presented as “share of (loss)/income of subsidiaries”. The Company’s net financial interests in the consolidated VIEs are presented on the separate condensed balance sheets of the Company as “Net liabilities of the VIEs, and the income/(loss) of the VIEs is presented as “Income/(Loss) from the VIEs”. The condensed statement of operations and comprehensive (loss)/income also include share-based compensation expenses pushed down to the Company from the Predecessors for the year ended June 30, 2022. The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant capital and other commitments or guarantees as of June 30, 2024.

Condensed balance sheets

		As of June 30,
		2023				2024				2024
		RMB				RMB				US$

ASSETS
Current assets:
Cash and cash equivalents			23,469				64,689				8,902
Short-term investments			116,090				-				-
Amounts due from intra-Group companies			121,685				62,153				8,553
Prepayments and other current assets			4,798				75,760				10,424
Total current assets			266,042				202,602				27,879
Investment in subsidiaries			183,216				453,384				62,388
Total non-current assets			183,216				453,384				62,388
TOTAL ASSETS			449,258				655,986				90,267
Accrued expenses and other current liabilities			250				300				41
Amounts due to intra-Group companies			-				3,478				479
Total current liabilities			250				3,778				520
Net liabilities of the VIEs			225,310				135,724				18,676
Total non-current liabilities			225,310				135,724				18,676
TOTAL LIABILITIES			225,560				139,502				19,196
SHAREHOLDERS’ EQUITY
Class A ordinary shares			78				81				11
Class B ordinary shares			34				34				5
Treasury stock			-				(109,257	)			(15,034	)
Additional paid-in capital			1,171,092				1,192,474				164,090
Accumulated other comprehensive income			22,182				17,313				2,382
Accumulative deficit			(969,688	)			(584,161	)			(80,383	)
TOTAL SHAREHOLDERS’ EQUITY			223,698				516,484				71,071
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			449,258				655,986				90,267

Condensed statements of operations and comprehensive (loss)/income

		For the years ended June 30,
		2022				2023				2024				2024
		RMB				RMB				RMB				US$

Revenues			-				-				-				-
Cost of revenues			(27,583	)			(26,486	)			(13,651	)			(1,878	)
Gross Profit			(27,583	)			(26,486	)			(13,651	)			(1,878	)
Operating expenses:
Sales and marketing expenses			(86,682	)			(52,182	)			2,653				365
Research and development expenses			(120,558	)			(49,047	)			(1,887	)			(260	)
General and administrative expenses			(57,287	)			(72,164	)			(28,706	)			(3,950	)
Total operating expenses			(264,527	)			(173,393	)			(27,940	)			(3,845	)
Loss from operations			(292,110	)			(199,879	)			(41,591	)			(5,723	)
Other (loss)/income:
Interest income			-				74				2,020				278
Others, net			-				680				6,841				941
Share of (loss)/income from subsidiaries			(4,028	)			105,565				348,484				47,953
Income/(loss) from the VIEs			62,712				(14,977	)			69,773				9,601
(Loss)/Income before income tax			(233,426	)			(108,537	)			385,527				53,050
Income tax expense			-				-				-				-
Net (loss)/income			(233,426	)			(108,537	)			385,527				53,050
Allocation of accretion of Predecessors’ preferred shares			(22,655	)			-				-				-
Accretion of the Company’s preferred shares			(2,987	)			(22,379	)			-				-
Net (loss)/income attributable to ordinary shareholders of QuantaSing Group Limited			(259,068	)			(130,916	)			385,527				53,050

Net (loss)/income			(233,426	)			(108,537	)			385,527				53,050
Other comprehensive income/(loss)
Foreign currency translation adjustments, net of nil tax			1,839				20,343				(4,869	)			(670	)
Total other comprehensive income/(loss)			1,839				20,343				(4,869	)			(670	)
Total comprehensive (loss)/income			(231,587	)			(88,194	)			380,658				52,380

Condensed statements of cash flows

		For the years ended June 30,
		2022				2023				2024				2024
		RMB				RMB				RMB				US$

Net cash used in operating activities			(49	)			(13,082	)			(8,427	)			(1,160	)

Cash flows from investing activities:
Loan provided to subsidiaries			(127,165	)			(215,277	)			(117,217	)			(16,130	)
Loan repaid by subsidiaries			80,049				100,937				235,424				32,395
Purchase of short-term investments			-				(145,652	)			-				-
Proceeds from short-term investments			-				36,300				59,520				8,190
Net cash (used in)/provided by investing activities			(47,116	)			(223,692	)			177,727				24,455

Cash flows from financing activities:
Contribution from Predecessors			76,178				-				-				-
Proceeds from loans from Predecessors			50,986				-				-				-
Repayment of loans to Predecessors			(79,981	)			-				-				-
Proceeds from exercise of share options			-				-				2,467				339
Repurchase of ADSs			-				-				(130,409	)			(17,945	)
Proceeds from issuance of Class A ordinary shares upon the completion of IPO (net of issuance costs paid)			-				256,764				-				-
Net cash provided by/(used in) financing activities			47,183				256,764				(127,942	)			(17,606	)
Effect of exchange rate changes on cash and cash equivalents			-				3,461				(138	)			(16	)
Net increase in cash and cash equivalents			18				23,451				41,220				5,673
Cash and cash equivalents at beginning of the year			-				18				23,469				3,229
Cash and cash equivalents at end of the year			18				23,469				64,689				8,902