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Contract Liabilities

12 Months Ended

Dec. 31, 2024

13.

Contract Liabilities

Contract liabilities - current as of December 31, 2024 and 2023 were as follows:

	As of December 31,
	2024		2023

Deferred revenue related to customer loyalty program		14,187,502		20,008,439
Advance from customers related to coupons and gift cards		12,390,620		11,255,648
Deferred revenue related to upfront franchise fees received from sub-franchisees		3,235,686		1,349,357
Advance from sub franchisees related to other franchise support activities		8,435,669		2,692,461
Other		1,428,070		5,408,929
Total		39,677,547		40,714,834

Contract liabilities – non-current as of December 31, 2024 and 2023 were as follows:

	As of December 31,
	2024		2023
Deferred revenue related to upfront franchise fees received from sub-franchisees		7,781,755		5,271,661
Other		240,000		-
Total		8,021,755		5,271,661

Contract liabilities primarily consist of deferred revenue related to customer loyalty program and advance from customers related to coupons and gift cards. The deferred revenue related to customer loyalty program and advance from customers related to coupons and gift cards are expected to be recognized as revenue in the next 12 months from the balance sheet date.

The Company had RMB11,017,441 of deferred revenues related to upfront franchise fees which are expected to be recognized as revenues over the remaining contract periods of each individual franchise agreement and of which RMB3,235,686 is expected to be recognized in the next 12 months, RMB7,781,755 is expected to be recognized in next 2 to 10 years.

Revenue recognized that was included in the contract liability balance at the beginning of the year amounts to RMB 41,860,173 and RMB21,880,042 in 2024 and 2023, respectively.

The Company has elected, as a practical expedient not to disclose the value of remaining performance obligations associated with sales-based royalty promised to sub-franchisees in exchange for franchise right and other related services.