SHARE BASED COMPENSATION

12 Months Ended

Dec. 31, 2020

SHARE BASED COMPENSATION

SHARE BASED COMPENSATION

27.   SHARE BASED COMPENSATION

The Company adopted a long-term incentive plan (the "2009 Plan") in July 2009 which was subsequently amended and restated. The 2009 plan provided for the issuance of options of 9,325,122 ordinary shares. The options have a contractual life of 7 years except for certain options granted to an employee in August 2009 that can be exercised until October 1, 2013. The share options will vest in 5 successive equal annual installments on the last day of each year from the grant date, provided that the personnel’s service with the Company has not terminated prior to each such vesting date. For 953,200 options granted to one employee in August 2009, the share options vested in a series of 36 months, on the last day of each month, commencing from October 1, 2008.

The Company adopted a new long-term incentive plan (the "2014 Plan") in August 2014. The 2014 Plan provides for the issuance of options of 12,796,745 ordinary shares. The options have a contractual life of 10 year. The share options will vest in 5 successive equal annual installments on the last day of each year from the grant date, provided that the personnel’s service with the Company has not terminated prior to each such vesting date.

A summary of activities under the Company’s share-based compensation plan is as follows:

	Number of		Weighted-average
	option	Weighted-average	remaining	Aggregate
	outstanding	exercise price	contractual term	intrinsic value
		(USD/share)	(in years)	(RMB)
Balance as of January 1, 2020	4,555,288	3.34	—	—
Granted	—	—	—	—
Exercise	(3,750,540)	3.32	—	—
Forfeited	(88,000)	3.29	—	—
Balance as of December 31, 2020	716,748	3.46	5.25	58,835,911
Vested and expected to vest as of December 31, 2020	689,968	3.63	4.08	53,289,086
Vested and exercisable as of December 31, 2020	592,760	3.69	3.79	45,563,647

The aggregate intrinsic value is calculated as the difference between the market price of ordinary shares, USD15.47 (RMB100.92) per share as of December 31, 2020 and the exercise prices of the options.

Total intrinsic value of options exercised during the year ended December 31, 2018, 2019 and 2020 were RMB3,057,319, RMB54,032,828 and RMB296,759,089 respectively.

The total fair value of shares vested for the years ended December 31, 2018, 2019 and 2020 were RMB63,100,120, RMB65,621,884 and RMB4,132,648 respectively.

The share-based compensation expense of continuing operations for the year ended December 31, 2018, 2019 and 2020 was recorded in the respective items:

	For the years ended December 31,
	2018	2019	2020
	RMB	RMB	RMB
Costs of revenues	967,367	(771,464)	328,549
Selling expenses	6,415,213	3,424,973	461,567
General and administrative expenses	24,066,459	1,140,815	145,835
Research and development expenses	(2,141,136)	783,991	(13,083)
Total	29,307,903	4,578,315	922,868

As of December 31, 2020, the Company had unrecognized share-based compensation expense RMB326,326 related to non-vested share options. That deferred cost is expected to be recognized over a weighted-average period of 0.75 years. For the year ended December 31, 2020, total cash received from the exercise of share options was RMB114,758,281.