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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Financial Statement Amounts and Balances of VIE and its subsidiaries

2.	Summary of significant accounting policies—(Continued)

2.2 Basis of Consolidation—(Continued)

VIE Arrangements—(Continued)

The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances:

	As of December 31
		2020		2021
		RMB		RMB
ASSETS
Cash and cash equivalents			445,531		553,256
Restricted cash			—		150,000
Short-term investments			—		510,467
Amount due from related parties, net			289,156		383,244
Inventories			151,864		396,482
Prepayments and other receivables, net			185,621		667,986
Funds receivable from third party payment service providers			122,234		383,896
Property and equipment, net			68,161		99,290
Intangible assets, net			1,365,847		1,074,337
Long-term Investments			50,149		159,577
Goodwill			1,799,529		1,799,529
Other non-current assets			13,649		103,613
Total Assets			4,491,741		6,281,677
LIABILITIES
Short-term borrowings			339,292		64,250
Accounts payables			25,573		32,132
Contract liabilities			31,629		205,759
Accrued expenses and other current liabilities			344,530		284,686
Accrued payroll and welfare			114,319		101,380
Amount due to related parties			114,551		73,976
Convertible bonds			160,000		—
Operating lease liabilities current and non-current			—		30,709
Deferred tax liabilities			341,462		222,770
Total Liabilities			1,471,356		1,015,662

	Years ended December 31,
	2019			2020			2021
	RMB			RMB			RMB
Net revenues		3,889,141			4,683,756			7,433,727
Net loss		(691,638	)		(414,238	)		(703,935	)
Net cash used in operating activities		(354,506	)		(264,221	)		(782,810	)
Net cash used in investing activities		(166,824	)		(6,684	)		(663,499	)
Net cash (used in) provided by financing activities		(13,885	)		354,307			(305,245	)

Schedule of Fair Value Measurements of Assets and Liabilities are Measured at Fair Value on Recurring Basis

As of December 31, 2020 and 2021, information about inputs into the fair value measurements of the Group's assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:

As of December 31,	Description	Fair value as of December 31,2021		Significant Other Observable Inputs (Level 2)
		RMB		RMB
2020	Short-term investments		71,775		71,775
2021	Short-term investments		160,467		160,467
2021	Investments at fair value		52,212		52,212

Schedule of Assets Measured at Fair Value on Non-recurring Basis

The following table presents the Group's assets measured at fair value on a non-recurring basis for the years ended December 31, 2019, 2020 and 2021:

Years ended December 31,	Description	Fair Value for Years Ended December 31,2021		Significant Unobservable Inputs (Level 3)		Total Loss for the Year
		RMB		RMB
2019	Equity investments without readily determinable fair value		—		—		4,714
2020	Property and equipment		—		—		6,449
2020	Equity investments without readily determinable fair value		—		—		3,500
2021	Equity investments without readily determinable fair value		—		—		16,500

Property and Equipment Estimated Useful Lives

Property and equipment are recorded at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Category		Estimated useful lives
Machinery		3-10 years
Electronic equipment		3 years
Leasehold improvement		Over the shorter of the lease term or expected useful lives
Furniture and office equipment		3 years
Motor vehicle		4 years
Software		3-5 years

Schedule of Identifiable Intangible Assets

The identifiable intangible assets acquired are amortized on a straight-line basis over their respective useful lives as follows:

The identifiable intangible assets		Amortization Years
Brand names		10 years
BCA		1-6 years
Technology/platform		5 years
NCC		5 years

Schedule of Net Product and Service Revenues by Revenue Streams and Geographical Location

For the year ended December 31, 2019, 2020 and 2021, the disaggregated revenues by revenue streams were as follows:

	Year ended December 31,
	2019		2020		2021
	RMB		RMB		RMB
Net online product revenue		3,716,757		3,927,486		6,220,037
Net product revenue from offline channel		13,449		316,537		434,856
Net product revenue		3,730,206		4,244,023		6,654,893
Net service revenue for PJT marketplace		63,467		276,721		516,155
Net service revenue for Paipai marketplace		120,384		304,965		520,944
Net service revenue from other channel		17,801		32,490		88,283
Net service revenue		201,652		614,176		1,125,382

The following is the Group’s net product and service revenues by geographical location:

	Years ended December 31,
	2019		2020		2021
	RMB		RMB		RMB
Mainland China		3,716,757		4,080,229		6,285,247
Hong Kong		11,588		145,641		339,616
Others		1,861		18,153		30,030
Net product revenue		3,730,206		4,244,023		6,654,893
Mainland China		195,288		611,975		1,123,351
Hong Kong		6,364		2,201		2,031
Net service revenue		201,652		614,176		1,125,382

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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