Right of Use Assets

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Right of Use Assets [Abstract]

RIGHT OF USE ASSETS

8. RIGHT OF USE ASSETS

The Company has several operating leases for offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Effective January 1, 2022, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its unaudited condensed consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated deficit as of January 1, 2022. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.

Total lease expense for the six months ended June 30, 2022 and 2023 amounted to RMBRMB2,921 and RMB3,627 (US$500), respectively.

Supplemental balance sheet information related to operating leases was as follows:

	As of December 31,		As of June 30,
	2022		2023		2023
	RMB		RMB		USD
Right-of-use assets, net		19,209		15,725		2,169
Operating lease liabilities - current		7,174		7,527		1,038
Operating lease liabilities - non-current		12,773		8,874		1,224
Total operating lease liabilities		19,947		16,401		2,262

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2023:

Remaining lease term and discount rate:
Weighted average remaining lease term (years)	2.33 years
Weighted average discount rate	4.75%

The following is a schedule of maturities of lease liabilities as of June 30, 2023:

	RMB		USD
Twelve months ending June 30,
2024		8,094		1,116
2025		6,327		873
2026		2,811		388
Total future minimum lease payments		17,232		2,377
Less: imputed interest		831		115
Present value of lease liabilities		16,401		2,262

11. RIGHT OF USE ASSETS

The Company has several operating leases for offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Effective January 1, 2022, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated deficit as of January 1, 2022. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.

Total lease expense for the year ended December 31, 2020, 2021 and 2022 amounted to RMB5,221, RMB5,424 and RMB6,398 (US$928), respectively.

Supplemental balance sheet information related to operating leases was as follows:

	As of December 31,
	2022		2022
	RMB		USD
Right-of-use assets, net		19,209		2,785
Operating lease liabilities - current		7,174		1,040
Operating lease liabilities - non-current		12,773		1,852
Total operating lease liabilities		19,947		2,892

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2022:

Remaining lease term and discount rate:
Weighted average remaining lease term (years)	2.75 years
Weighted average discount rate	4.75 %

The following is a schedule of maturities of lease liabilities as of December 31, 2022:

	RMB		USD
Twelve months ending June 30,
2023		7,911		1,147
2024		8,360		1,212
2025		4,210		610
2026		707		103
Total future minimum lease payments		21,188		3,072
Less: imputed interest		1,241		180
Present value of lease liabilities		19,947		2,892