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VARIABLE INTEREST ENTITIES

12 Months Ended

Jun. 30, 2023

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

NOTE 24. VARIABLE INTEREST ENTITIES

VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

Summary information regarding consolidated VIEs and their subsidiaries is as follows:

​

​	​	​	​	​	​	​	​	​	​
​	​	June 30, 2022		​	June 30, 2023		​	June 30, 2023
​		RMB			RMB			US Dollars
ASSETS		​	​		​			​
Current Assets		​	​		​			​
Cash		¥	18,033,666		¥	37,661,118	​	$	5,092,821
Restricted cash	​	​	723,560	​	​	731,545	​	​	100,885
Notes receivable		​	10,828,308		​	3,742,390	​		516,099
Accounts receivable, net		​	22,577,980		​	27,453,415	​		3,785,999
Inventories, net	​	​	3,894,369	​	​	6,330,701	​	​	873,044
Other receivables, net	​	​	5,500,981	​	​	11,618,275	​	​	1,602,233
Loans to third parties	​	​	30,270,563	​	​	37,770,188	​	​	5,208,747
Purchase advances, net	​	​	178,208	​	​	1,592,761	​	​	219,652
Contract costs, net	​	​	33,858,820	​	​	49,572,685	​	​	6,836,386
Prepaid expenses	​	​	165,120	​	​	121,329	​	​	16,732
Prepaid expenses- related parties		​	275,000		​	—	​		—
Total current assets		​	126,306,575		​	176,594,407	​	​	24,252,598
​	​	​	​	​	​	​	​	​	​
Property and equipment, net	​	​	25,474,162	​	​	24,752,864	​	​	3,413,576
Construction in progress	​	​	239,739	​	​	—	​	​	—
Intangible assets, net	​	​	5,950,000	​	​	—	​	​	—
Long-term other receivables, net	​	​	1,564,381	​	​	3,640	​	​	502
Goodwill	​	​	4,730,002	​	​	—	​	​	—
Operating lease right-of-use assets		​	6,666,759		​	2,654,900	​		366,127
Total Assets		¥	170,931,618		¥	204,005,811	​	$	28,032,803
​	​	​	​	​	​	​	​	​	​
LIABILITIES		​	​		​	​	​		​
Short-term bank loans		¥	10,000,000		¥	12,451,481	​	$	1,717,138
Accounts payable	​	​	12,826,108	​	​	10,791,721	​	​	1,488,246
Other payables	​	​	1,469,761	​	​	3,904,135	​	​	538,405
Other payable- related parties	​	​	1,061,081	​	​	1,356,915	​	​	187,127
Contract liabilities	​	​	2,001,277	​	​	2,748,361	​	​	379,017
Accrued payroll and employees’ welfare	​	​	1,213,040	​	​	1,048,061	​	​	144,534
Intercompany payables*	​	​	194,373,010	​	​	263,935,922	​	​	36,398,428
Taxes payable	​	​	2,211,190	​	​	1,163,237	​	​	160,418
Short-term borrowings - related parties	​	​	9,009,156	​	​	20,018,222	​	​	2,760,639
Long-term borrowings - related party - current portion		​	999,530		​	—	​		—
Operating lease liabilities - current		​	3,892,774		​	3,066,146	​		422,841
Total current liabilities		​	239,056,927		​	320,484,201	​		44,196,793
​	​	​	​	​	​	​	​	​	​
Operating lease liabilities - non-current	​	​	2,184,635	​	​	25,144	​	​	3,468
Contract liabilities - non-current	​	​	106,000	​	​	—	​	​	—
Long-term borrowings - related party		​	5,511,076		​	—	​		—
Deferred tax liability	​	​	187,972	​	​	—	​	​	—
Total Liabilities		¥	247,046,610		¥	320,509,345	​	$	44,200,261

*Intercompany payables are eliminated upon consolidation.

​

The financial performance of VIEs reported in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2021 includes revenue of ¥47,817,378, operating expenses of ¥36,704,840, and net loss of ¥29,407,210. The financial performance of VIEs and their subsidiaries reported in the consolidated statement of operations and comprehensive income for the year ended June 30, 2022 includes revenue of ¥83,777,571 ($12,508,368), operating expenses of ¥35,725,237 ($5,333,938), and net loss of ¥18,180,305 ($2,714,401). The financial performance of VIEs and their subsidiaries reported in the consolidated statement of operations and comprehensive income (loss) for the year ended June 30, 2023 includes revenue of ¥67,114,378 ($9,255,496), operating expenses of ¥35,547,439 ($4,902,216), and net loss of ¥26,349,629 ($3,633,780).

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- References

No definition available.

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- Definition

The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 810
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//810/tableOfContent

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