XML 43 R15.htm IDEA: XBRL DOCUMENT v3.22.2.2
Income Taxes
 12 Months Ended
Jun. 30, 2022
Income Taxes  
Income Taxes
9.Income Taxes

The entities within the Group file separate tax returns in the respective tax jurisdictions in which they operate.

Cayman Islands

The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands.

British Virgin Islands (“BVI”)

Under the current laws of the BVI, the Group’s subsidiaries incorporated in BVI are not subject to tax on income or capital gains. Additionally, upon payments of dividends by these BVI companies to its respective shareholders, no BVI withholding tax will be imposed.

Hong Kong, PRC

Under the current HK tax laws, before April 1, 2018, the income tax rate of Hong Kong was 16.5%. Effective from April 1, 2018, a two-tier corporate income tax system was officially implemented in Hong Kong, which is 8.25% for the first HK$2.0 million profits, and 16.5% for the subsequent profits. Under the HK tax laws, it is exempted from the Hong Kong income tax on its foreign-derived income. In addition, payments of dividends from Hong Kong subsidiaries to the Company are not subject to any Hong Kong withholding tax.

Mainland, PRC

The Group’s PRC subsidiaries and VIEs are governed by the income tax law of the PRC and are subject to the PRC enterprise income tax (“EIT”). The EIT rate of PRC is 25%, which applies to both domestic and foreign invested enterprises.

For the years ended June 30, 2020, 2021 and 2022, the income tax rate of all the Group’s PRC subsidiaries and VIEs is 25%, except for Shanghai Ziji which enjoyed 15% preferential income tax rate since December 2019.

For the years ended June 30, 2020, 2021 and 2022, the Group’s income/(loss) before tax consisted of:

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30,

​

    

2020

    

2021

    

2022

    

2022

​

​

RMB

​

RMB

​

RMB

​

US$

​

​

​

​

​

​

​

​

​

PRC

 

201,203

 

308,685

 

333,425

 

51,639

HK

 

(44,038)

 

(12,929)

 

(10,009)

 

(1,550)

Cayman and others

 

(251)

 

(5)

 

1,031

 

160

​

 

156,914

 

295,751

 

324,447

 

50,249

​

For the years ended June 30, 2020, 2021 and 2022, the Group’s income tax (expense)/ benefit consisted of:

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

​

​

2020

​

2021

​

2022

​

2022

​

 

RMB

 

RMB

 

RMB

 

US$

​

​

​

​

​

​

​

​

​

Current

    

(51,512)

    

(86,367)

    

(88,861)

    

(13,763)

Deferred

 

749

 

(1,727)

 

283

 

44

​

 

(50,763)

 

(88,094)

 

(88,578)

 

(13,719)

​

A reconciliation of the income tax expense determined at the PRC statutory income tax rate to the Group’s actual income tax expense is as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended June 30, 

 

​

​

2020

​

2021

​

2022

​

2022

 

​

 

RMB

 

RMB

 

RMB

 

US$

 

​

​

​

​

​

​

​

​

​

​

Income before income tax expense

    

156,914

    

295,751

    

324,447

    

50,249

​

PRC statutory income tax rate

 

25

%  

25

%  

25

%  

25

%

Income tax at PRC statutory income tax rate

 

(39,229)

 

(73,938)

 

(81,112)

 

(12,562)

​

Impact of different tax rates in other jurisdictions

 

(3,823)

 

(1,100)

 

(969)

 

(150)

​

Preferential tax treatments and tax holiday effects

 

43

 

(73)

 

1,110

 

172

​

Super deduction of qualified R&D expenditures

 

2

 

13

 

173

 

27

​

Expenses not deductible (including expenses accrued for share-based compensation amounting to RMB(92) (reversed), RMB5,487 and RMB1,835 for the years ended June 30, 2020, 2021 and 2022, respectively)

 

(5,621)

 

(9,737)

 

(3,011)

 

(468)

​

Valuation allowance on deferred tax assets

 

(2,135)

 

(3,259)

 

(4,769)

 

(738)

​

Income tax expense

 

(50,763)

 

(88,094)

 

(88,578)

 

(13,719)

​

​

The Group’s deferred tax liabilities were recorded as a result of recognition of the identifiable intangible assets acquired from various acquisition transactions. The Group’s deferred tax liabilities on June 30, 2022 and changes for the two years then ended were as follows:

​

​

​

​

​

    

Amount

​

 

RMB

​

​

​

Balance as of June 30, 2020

 

3,961

Decrease due to amortization of intangible assets

 

(207)

Exchange translation adjustment

 

(206)

Balance as of June 30, 2021

​

3,548

Decrease due to amortization of intangible assets

​

(207)

Increase due to acquisition

​

651

Exchange translation adjustment

​

59

Balance as of June 30, 2022

 

4,051

Amount in US$

 

604

​

The Group’s deferred tax assets on June 30, 2021 and 2022 were as follows:

​

​

​

​

​

​

​

​

​

​

As of June 30, 

​

    

2021

    

2022

    

2022

​

 

RMB

 

RMB

 

US$

​

​

​

​

​

​

​

Tax loss carry forward

 

12,266

 

17,094

 

2,547

Contingent losses related to legal proceedings

 

325

 

—

 

—

Net operating losses acquired through Acquisition

​

—

​

16,259

​

2,423

Others

 

329

 

324

 

48

Less, valuation allowance

 

(12,271)

 

(32,301)

 

(4,813)

​

 

649

 

1,376

 

205

​

The Group’s deferred tax assets valuation allowance on June 30, 2022 and changes for the two years then ended were as follows:

​

​

​

​

​

    

Amount

​

 

RMB

​

​

​

Balance as of June 30, 2020

 

9,247

Increase during the year

​

3,259

Exchange translation adjustment

​

(235)

Balance as of June 30, 2021

​

12,271

Increase during the year

​

4,769

Increase due to acquisition of entities

​

15,206

Exchange translation adjustment

​

55

Balance as of June 30, 2022

​

32,301

Amount in US$

 

4,813

​

Total net operating losses (NOLs) carryforwards of the Group’s VIEs in mainland China is RMB41,871 and RMB112,370 as of June 30, 2021 and 2022, respectively. The NOLs carryforwards of the Group’s VIEs in mainland China as of June 30, 2022 will expire between the calendar years 2023 through 2027. The NOLs carryforwards of the Group’s VIEs in Hong Kong are RMB12,198 and RMB30,965 as of June 30, 2021 and 2022, respectively. The NOLs of the Group’s VIEs in Hong Kong can be carried forward indefinitely. The related deferred tax assets were calculated based on the respective net operating losses incurred by each of the consolidated VIEs and the respective corresponding enacted tax rate that will be in effect in the period in which the losses are expected to be utilized.

The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Group’s experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more-likely-than-not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax laws. For the year ended June 30, 2021, the Group recorded an additional valuation allowance in a net amount of RMB3,259. For the year ended June 30, 2022, the Group recorded an additional valuation allowance in a net amount of RMB19,975.

The current EIT law also imposes a 10% withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company.