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BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY (Tables)

6 Months Ended

Dec. 31, 2023

BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY

Summary of fair values of the identifiable assets and liabilities

​

​	​	​	​	​	​	​
​		RMB			US Dollars
Cash		¥	471,843	​	$	66,458
Accounts receivable, net		​	831,049	​		117,051
Other receivables, net		​	144,285	​		20,322
Contract costs, net		​	75,250	​		10,599
Prepaid expenses		​	91,132	​		12,836
Property and equipment, net		​	118,130	​		16,638
Intercompany receivables*		​	6,850,000	​		964,802
Intangible assets- customer relationship		​	7,000,000	​		985,929
Goodwill		​	6,996,895	​		985,492
Accounts payable		​	(1,032,078)	​		(145,365)
Other payables		​	(1,273,182)	​		(179,324)
Other payable- related parties		​	(479,959)	​		(67,601)
Deferred revenue		​	(39,786)	​		(5,604)
Accrued payroll and employees’ welfare		​	(1,629,519)	​		(229,513)
Taxes payable		​	(64,253)	​		(9,050)
Deferred tax liability		​	(1,050,000)	​		(147,889)
Total		¥	17,009,807	​	$	2,395,781
Cash considerations		​	—	​		—
Deemed equity consideration to acquire 8% equity interest in FGS		​	1,689,807	​		238,004
Fair value of previously held equity interest		​	30,530,000	​		4,300,061
Non-controlling interest		​	34,790,000	​		4,900,069
Capital contribution receivable due from non-controlling Interest		​	(50,000,000)	​		(7,042,353)
Total		¥	17,009,807	​	$	2,395,781

*Intercompany receivables from Nanjing Recon and BHD are eliminated upon consolidation.

Summary of fair value of goodwill acquired and the carrying value, customer relationship, and its estimated useful lives

The identifiable goodwill acquired and the carrying value as of December 31, 2023 is as follows:

​	​	​	​	​	​	​
​		Fair Value
​	​	RMB			US Dollars
​	​	(Unaudited)		​	(Unaudited)
Goodwill		¥	6,996,895	​	$	985,492
Less: impairment		​	(6,996,895)	​		(985,492)
The carrying value of goodwill as of December 31, 2023		¥	—	​	$	—

​

The fair value of identified intangible assets, which is customer relationship, and its estimated useful lives as of December 31, 2023 is as follows:

​

​	​	​	​	​	​	​	​	​
​		​	​			​		Average
​	​	​	​	​	​	​	​	Useful Life
​	​	Fair Value					​	(in Years)
​	​	RMB		​	US Dollars		​	​
​	​	(Unaudited)		​	(Unaudited)		​	​
Intangible assets - customer relationship		¥	7,000,000	​	$	985,929		10
Less: accumulated amortization		​	(1,750,000)	​		(246,482)
Less: impairment	​	​	(5,250,000)	​	​	(739,447)	​	​
Intangible assets - customer relationship, net		¥	—	​	$	—

X

- Definition

Tabular disclosure of the characteristics, including initial carrying value, residual amount, weighted average useful life, of finite-lived intangible assets acquired during the period by major class. A major class is composed of intangible assets that can be grouped together because they are similar, either by nature or by their use in the operations of the company.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482665/350-30-50-1

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- Definition

Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479328/805-10-50-3

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-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
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