| Accounting Policies, by Policy (Policies) | 12 Months Ended |
| Mar. 31, 2021 |
| Accounting Policies [Abstract] | |
| Basis of presentation | Basis
of presentation The
consolidated financial statements of the Company have been prepared in accordance with US GAAP. |
| The Outbreak of Coronavirus Disease 2019 (“COVID-19”) | The
Outbreak of Coronavirus Disease 2019 (“COVID-19”) In
December 2019, a novel strain of coronavirus was reported in Wuhan, China. On March 11, 2020, the World Health Organization categorized
it as a pandemic. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses and schools worldwide.
The potential impact which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on our financial
position, operations and cash flows. On March 24, 2020, the Indian government ordered a 21-day nationwide
lockdown, followed by another order on April 14, 2020 and was extended until May 31, 2020 with numerous relaxations which inter alia permitted
opening of businesses and offices with certain restrictions. The Indian government, on May 30, 2020 further extended the lockdown in certain
areas identified as ‘containment zones’ until June 30, 2020 and permitted re-opening of the economy in a phased manner in
areas outside the containment zones. Ministry of Home Affairs (MHA) announced that from July 1, 2020 to July 30, 2020, lockdown measures
were only imposed in containment zones. In all other areas, most activities were permitted. From August 1, 2020, night curfews were removed
and all inter-and intra-state travel and transportation is permitted. However, the respective state/union territory governments have been
empowered to prohibit activities in areas outside containment zones or impose such restrictions as deemed necessary to contain the spread
of COVID-19, which has slowed down the rate of resumption of business activities. Due to the lockdown, our operations in India were halted
for several weeks. Since May 11, 2020, we resumed our sales operations in various parts of India (except those falling under containment
zones). While the Indian government lifted the lockdown throughout India and took requisite steps to bring back the Indian economy on
track in early 2021, a second larger outbreak of COVID-19 occurred in India in March 2021. To curb the spread of the virus, various state
governments have announced lockdowns and imposed curbs on movement and economic activities of different time periods. The lockdown in
the capital of India, Delhi has been lifted to a large extent. While the governments of each affected state have commenced easing the
lockdown restrictions, the same may be extended or made stringent to control the spread of COVID-19. Such restrictions on continued business
activities will have a detrimental impact on our business in India. Our
customers could potentially be negatively impacted by the COVID-19 outbreak, which may reduce their future orders. Our customers may
reduce their future purchases from us if they are not able to complete manufacturing of their products due to the shortage of
components from other suppliers. The extent of the impact of COVID-19 on our operational results and financial condition will depend
on certain developments, including the duration and spread of the outbreak and impact on our customers, all of which are
uncertain. |
| Liquidity | Liquidity The
Company incurred net loss of RMB11,949, RMB21,701 and RMB16,627 in the years ended March 31, 2019, 2020 and 2021, respectively. Working
capital deficits were RMB4,030 and RMB17,289 as of March 31, 2020 and 2021, respectively. On April 8, 2021, the Company received net
proceeds, after deducting underwriting discounts and commissions for the IPO, of $13.8 million from its issuance and sale of 3,750,000
ordinary shares, which has alleviated the substantial doubt about the Company’s ability to continue as a going concern. As of the
date of consolidated financial statements for the year ended March 31, 2021 were issued, the Company expects that its existing cash,
including the $13.8 million of the proceeds it received on April 8, 2021 from its ordinary share financing, will be sufficient to fund
its operating expenses and capital expenditure requirements within one year after the date of the consolidated financial statements are
reissued. The future viability of the Company beyond that point is dependent on its ability to generate cash from operating activities
and to raise additional capital to finance its operations. If the Company is unable to obtain funding, the Company may be unable to realize
its assets and discharge its liabilities in the normal course of business. |
| Principles of consolidation | Principles
of consolidation The
consolidated financial statements include the financial statements of the Company and its subsidiaries, VIE and VIE’s subsidiaries
for which the Company is the primary beneficiary. All significant inter-company balances and transactions between the Company, its subsidiaries,
VIE and VIE’s subsidiaries are eliminated. |
| Use of estimates | Use
of estimates The
preparation of the consolidated financial statements in conformity with US GAAP requires management of the Company to make a number of
estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Management
evaluates these estimates and assumptions on a regular basis. Significant accounting estimates reflected in the Company’s consolidated
financial statements include but are not limited to estimates and judgments applied in the allowance for receivables, write down of other
assets, estimated useful lives of property and equipment, impairment on inventory, sales return, product warranties, the valuation allowance
for deferred tax assets and income tax, provision for employee benefits, and going concern. Actual results could differ from those estimates
and judgments. |
| Cash and cash equivalents | Cash
and cash equivalents Cash
and cash equivalents consist of cash on hand, bank deposits and short-term, highly liquid investments with original maturities of three
months or less at the date of purchase, that are readily convertible to known amounts of cash, and have insignificant risk of changes
in value related to changes in interest rates. |
| Restricted cash | Restricted
cash Restricted
cash consisted of collateral representing cash deposits for long-term borrowings. |
| Receivables | Receivables Accounts
receivable and other receivables are reflected in the Company’s consolidated balance sheets at their estimated collectible amounts.
A substantial majority of its accounts receivable are derived from sales to well-known technological clients. The Company follows the
allowance method of recognizing uncollectible accounts receivable and other receivables, pursuant to which the Company regularly assesses
its ability to collect outstanding customer invoices and make estimates of the collectability of accounts receivable and other receivables.
The Company provides an allowance for doubtful accounts when it determine that the collection of an outstanding customer receivable is
not probable. The allowance for doubtful accounts is reviewed on a timely basis to assess the adequacy of the allowance. The Company
take into consideration (a) historical bad debts experience, (b) any circumstances of which it is aware of a customer’s
or debtor’s inability to meet its financial obligations, (c) changes in its customer or debtor payment history, and (d) its
judgments as to prevailing economic conditions in the industry and the impact of those conditions on its customers and debtors. If circumstances
change, such that the financial conditions of its customers or debtors are adversely affected and they are unable to meet their financial
obligations to the Company, it may need to record additional allowances, which would result in a reduction of its net income. Notes
receivable represent banks’ acceptances that have been arranged with third-party financial institutions by certain customers to
settle their purchases from the Company. These banks’ acceptances are non-interest bearing and are collectible within six months.
Its balance is combined under accounts receivable, if any. |
| Concentration of credit risk and major customers | Concentration
of credit risk and major customers Assets
that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents,
restricted cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying
amounts as at the balance sheet dates. As of March 31, 2020 and 2021, the aggregate amount of cash and cash equivalents, and
restricted cash of RMB1,054, and RMB9,477, respectively, were held at major financial institutions in PRC, where there currently is
no rule or regulation requiring the financial institutions to maintain insurance to cover bank deposits in the event of bank
failure. To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial
institutions in PRC. The Company conducts credit evaluations of its customers, and generally does not require collateral or other
security from them. The Company establishes an accounting policy for allowance for doubtful accounts on the individual
customer’s financial condition, credit history, and the current economic conditions. As of March 31, 2020 and 2021, the
Company recorded RMB838 and RMB878 of allowances for accounts receivable, respectively. Major
customers and accounts receivable —During the year ended March 31, 2019, the Company had three customers that accounted over
10% of revenues, and revenue from these customers amounted to RMB120,243, RMB29,651 and RMB24,820, respectively. The Company had one
customer that accounted over 10% of total accounts receivable at March 31, 2019, amounting to RMB29,938. During the year ended March
31, 2020, the Company had one customer that accounted over 10% of revenues, and revenue from this customer amounted to RMB110,608. The
Company had one customer that accounted over 10% of total accounts receivable at March 31, 2020, amounting to RMB36,274. During the year
ended March 31, 2021, the Company had two customers that accounted over 10% of revenues, and revenue from these customers amounted to
RMB102,067 and RMB44,747 respectively. The Company had one customer that accounted over 10% of total accounts receivable at March 31,
2021, amounting to RMB10,866. Sales from the above customers relate to Original Equipment Manufacturer (“OEM”)/Original Design
Manufacturer (“ODM”) services segment and sales of face mask. Major
suppliers —During the year ended March 31, 2019, the Company had one supplier accounted over 10% of total purchases and processing
fees, and purchase from the supplier amounted to RMB22,775. During the year ended March 31, 2020, the Company had two suppliers accounted
over 10% of total purchases and processing fees, and purchase and processing fees from the supplier amounted to RMB35,737. During the
year ended March 31, 2021, the Company had no supplier accounted over 10% of total purchases and processing fees. |
| Inventories | Inventories Inventories
of the Company consist of raw materials, finished goods and work in process. Inventories are stated at lower of cost or net realizable
value with cost being determined on the weighted average method. Elements of cost in inventories include raw materials, direct labor
costs, other direct costs, consignment manufacturing cost and manufacturing overhead. The Company assesses the valuation of inventory
and periodically writes down the value for estimated excess and obsolete inventory based upon the product life-cycle. |
| Property and equipment, net | Property
and equipment, net Property
and equipment are stated at cost less accumulated depreciation and impairment, if any. Cost represents the purchase price of the asset
and other costs incurred to bring the asset into its existing use. Maintenance and repairs are charged to expenses as incurred. Depreciation
of property and equipment are provided using the straight-line method over their estimated useful lives as follows:
Useful
life
Office
real estate 48 years
Furniture
and equipment 3 –
6 years
Production
and other machineries 5 –
10 years Upon
retirement or sale of an asset, the cost of the asset and the related accumulated depreciation are eliminated from the accounts and any
resulting gain or loss is credited or charged to other (income) expenses, net. |
| Intangible assets, net | Intangible
assets, net Intangible
asset results from the acquisition of the licensed software. The Company accounts for such licensed software with definite lives and
amortized over its estimated useful life of 3 years. Impairment
of long-lived assets The
Company reviews the carrying value of long-lived assets to be held and used when events and circumstances warrants such a review. The
carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately
identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value
exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted
at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed are determined in a similar manner, except
that fair market values are reduced for the cost to dispose. No impairment charge was recognized for all periods presented. Equity
method investment The
Company’s long-term investments consist of equity method investment. Investment in entities in which the Company can exercise significant
influence and holds an investment in voting common stock or in-substance common stock (or both) of the investee but does not own a majority
equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323 (“ASC 323”),
Investments-Equity Method and Joint Ventures. Under the equity method, the Company initially records its investment at cost. The Company
subsequently adjusts the carrying amount of the investments to recognize the Company’s proportionate share of each equity investee’s
net income or loss into earnings after the date of investment. The Company evaluates the equity method investment for impairment under
ASC 323. An impairment loss on the equity method investment is recognized in earnings when the decline in value is determined to be other-than-temporary. Fair
value of financial instruments Under
the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value,
the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes
certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks
inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable
inputs. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
Based on observability of the inputs used in the valuation techniques, the Company is required to provide the following information according
to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial
assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:
Level 1 Valuations
for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for
market transactions involving identical assets or liabilities.
Level 2 Valuations
for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services
for identical or similar assets or liabilities.
Level 3 Valuations
for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash
flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate
certain unobservable assumptions and projections in determining the fair value assigned to such assets. All
transfers between fair value hierarchy levels are recognized by the Company at the end of each reporting period. In certain cases, the
inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level
within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement in its entirety
requires judgment, and considers factors specific to the investment. The inputs or methodology used for valuing financial instruments
are not necessarily an indication of the risks associated with investment in those instruments. Fair
Value Measured or Disclosed on a Recurring Basis Borrowings —
Interest rates under the borrowing agreements with the lending parties were determined based on the prevailing interest rates in the
market. The Company classifies the valuation techniques that use these inputs as Level 2 fair value measurement. The carrying value of
the Company’s borrowings approximates fair value as the borrowing bears interest rates that are similar to existing market rates Other
financial items for disclosure purpose — The fair value of other financial items of the Company for disclosure purpose, including
cash and cash equivalents, restricted cash, accounts receivable, other receivables, other current assets, accounts payable, other payables
and accrued liabilities, approximate their carrying value due to their short-term nature. Government
Grants Government
grants are recognized in the balance sheet initially when there is reasonable assurance that they will be received and that the enterprise
will comply with the conditions attached to them. When the Company received the government grants but the conditions attached to the
grants have not been fulfilled, such government grants are deferred and recorded as deferred revenue. As of March 31, 2020 and 2021,
the deferred revenue were RMB400, which was recorded as deferred revenue in non-current liabilities, and RMB 1,000, which was recorded
as deferred revenue within other payables and accrued liabilities in current liabilities, respectively. The classification of short-term
or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled.
Grants that compensate the Company for expenses incurred are recognized as other income in statement of income on a systematic basis
in the same periods in which the expenses are incurred. Government subsidies recognized as other income in the consolidated statement
of comprehensive loss for the years ended March 31, 2019, 2020 and 2021 were RMB2,816, RMB1,520 and RMB1,289, respectively. Leases Prior
to the adoption of ASC 842 on April 1, 2019: Leases
where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rental
expense is recognized from the date of initial possession of the leased property on a straight-line basis over the term of the lease.
Rental expenses incurred by the Company was RMB5,664 for the year ended March 31, 2019. The
Company has no capital leases for any of the periods presented. Upon
and hereafter the adoption of ASC 842 on April 1, 2019: The
Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets and liabilities in the consolidated balance sheets. ROU
assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date
based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate,
the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value
of lease payments. It uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments
made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably
certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the
lease term. The Company have elected not to recognize ROU assets and lease liabilities for short-term leases for all classes of underlying
assets. Short-term leases are leases with terms of 12 months or less and does not include a purchase option that is reasonably certain
to exercise. Commitments
and Contingencies In
the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business
that relate to a wide range of matters. The Company recognizes a liability for such contingency if it determines it is probable that
a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments
including historical and the specific facts and circumstances of each matter. Revenue
recognition The
Company derives revenue principally from the sale of mobile phones and accessories. Revenue from contracts with customers is recognized
using the following five steps:
1. Identify
the contract(s) with a customer;
2. Identify
the performance obligations in the contract;
3. Determine
the transaction price;
4. Allocate
the transaction price to the performance obligations in the contract; and
5. Recognize
revenue when (or as) the entity satisfies a performance obligation. A
contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group
of promises) that is distinct. The transaction price is the amount of consideration the Company expects to be entitled from a customer
in exchange for providing the goods or services. The
unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance
obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer
can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and
the good or service is distinct in the context of the contract. Otherwise performance obligations are combined with other promised goods
or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in
the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are
immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent
distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises
should be assessed for classification as distinct performance obligations. The
Company’s revenue is primary derived from (i) OEM and ODM services for well-known brands; (2) its own in-house brands,
positioned in the emerging middle class consumer groups and price-sensitive consumers in emerging markets. Refer to Note 17 to the
consolidated financial statements for disaggregation of the Company’s revenue by type of product and geography information for
the years ended March 31, 2019, 2020 and 2021. Since
March 2020 the Company has participated in efforts to stem the spread of the COVID-19 epidemic, namely, by serving as a temporary
distributor of face masks to an existing overseas client in Brazil. The Company recognizes revenue from sales of face masks upon transfer
of control of its products to the customer, which typically occurs upon delivery. The Company’s main performance obligation to
its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the
products purchased under the arrangement. Delivery of these products occurs at that point of time when the control of the products is
transferred to the customer. All the face masks sold with delivery terms entered into on a Free On Board basis at Shenzhen port. The
following table disaggregates the Company’s revenue by type of contract for the years ended March 31, 2019, 2020 and 2021:
Year ended March 31,
2019 2020 2021
RMB RMB RMB
OEM/ODM 204,034 175,215 195,995
In-house brand 34,062 17,873 6,157
Face mask - - 44,747
Total 238,096 193,088 246,899
1) Cooperation
with OEM/ODM customers Revenue
is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and excludes amounts
collected on behalf of third parties. The Company generates its revenue through product sales, and shipping terms generally indicate
when it has fulfilled its performance obligations and passed control of products to its customer, when the goods have been shipped to
the customer’s specific location (delivery). Following delivery, the customer has full discretion over the manner of distribution
and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation
to the goods but has no right to return the products (other than for defective products). A receivable is recognized by the Company when
the goods are delivered to the customer as this represents the point in time at which the right to consideration becomes unconditional,
as only the passage of time is required before payment is due. Revenue from OEM/ODM customers does not meet the criteria to be recognized
over time since 1) it does not have the right of payment for the performance completed to date, 2) its work neither creates or enhances
an assets controlled by customers until goods are delivered to the customer, 3) customers do not receive and consume benefits simultaneously
provided by its performance.
2) Sales
of products for in-house brands For
revenue realized in Indian market, additional term of goods return may apply. Under Do Mobile’s standard contract terms, end users
have a right of return for defective devices within 7 days. At the point of sale, a refund liability and a corresponding adjustment
to revenue is recognized for those products expected to be returned. At the same time, Do Mobile has a right to recover the product when
customers exercise their right of return so consequently recognizes a right to returned goods asset and a corresponding adjustment to
cost of sales. Do Mobile uses its accumulated historical experience to estimate the number of returns on a portfolio level using the
expected value method, taking into consideration the type of products. Contract
assets and liabilities Contract
assets, such as costs to obtain or fulfill contracts, are an insignificant component of the Company’s revenue recognition process.
The majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventories and property and equipment,
which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to
the nature of the Company’s products and their respective manufacturing processes. Contract
liabilities are mainly advance from customers. Intangible
asset Intangible
asset results from the acquisition of the licensed software. The Company accounts for such licensed software with definite lives and
amortized over its estimated useful life of 3 years. |
| Impairment of long-lived assets | Impairment
of long-lived assets The
Company reviews the carrying value of long-lived assets to be held and used when events and circumstances warrants such a review. The
carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately
identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value
exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted
at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed are determined in a similar manner, except
that fair market values are reduced for the cost to dispose. No impairment charge was recognized for all periods presented. |
| Equity method investment | Equity
method investment The
Company’s long-term investments consist of equity method investment. Investment in entities in which the Company can exercise significant
influence and holds an investment in voting common stock or in-substance common stock (or both) of the investee but does not own a majority
equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323 (“ASC 323”),
Investments-Equity Method and Joint Ventures. Under the equity method, the Company initially records its investment at cost. The Company
subsequently adjusts the carrying amount of the investments to recognize the Company’s proportionate share of each equity investee’s
net income or loss into earnings after the date of investment. The Company evaluates the equity method investment for impairment under
ASC 323. An impairment loss on the equity method investment is recognized in earnings when the decline in value is determined to be other-than-temporary. |
| Fair value of financial instruments | Fair
value of financial instruments Under
the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value,
the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes
certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks
inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable
inputs. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
Based on observability of the inputs used in the valuation techniques, the Company is required to provide the following information according
to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial
assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:
Level 1 Valuations
for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for
market transactions involving identical assets or liabilities.
Level 2 Valuations
for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services
for identical or similar assets or liabilities.
Level 3 Valuations
for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash
flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate
certain unobservable assumptions and projections in determining the fair value assigned to such assets. All
transfers between fair value hierarchy levels are recognized by the Company at the end of each reporting period. In certain cases, the
inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level
within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement in its entirety
requires judgment, and considers factors specific to the investment. The inputs or methodology used for valuing financial instruments
are not necessarily an indication of the risks associated with investment in those instruments. |
| Fair Value Measured or Disclosed on a Recurring Basis | Fair
Value Measured or Disclosed on a Recurring Basis Borrowings —
Interest rates under the borrowing agreements with the lending parties were determined based on the prevailing interest rates in the
market. The Company classifies the valuation techniques that use these inputs as Level 2 fair value measurement. The carrying value of
the Company’s borrowings approximates fair value as the borrowing bears interest rates that are similar to existing market rates Other
financial items for disclosure purpose — The fair value of other financial items of the Company for disclosure purpose, including
cash and cash equivalents, restricted cash, accounts receivable, other receivables, other current assets, accounts payable, other payables
and accrued liabilities, approximate their carrying value due to their short-term nature. |
| Government Grants | Government
Grants Government
grants are recognized in the balance sheet initially when there is reasonable assurance that they will be received and that the enterprise
will comply with the conditions attached to them. When the Company received the government grants but the conditions attached to the
grants have not been fulfilled, such government grants are deferred and recorded as deferred revenue. As of March 31, 2020 and 2021,
the deferred revenue were RMB400, which was recorded as deferred revenue in non-current liabilities, and RMB 1,000, which was recorded
as deferred revenue within other payables and accrued liabilities in current liabilities, respectively. The classification of short-term
or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled.
Grants that compensate the Company for expenses incurred are recognized as other income in statement of income on a systematic basis
in the same periods in which the expenses are incurred. Government subsidies recognized as other income in the consolidated statement
of comprehensive loss for the years ended March 31, 2019, 2020 and 2021 were RMB2,816, RMB1,520 and RMB1,289, respectively. |
| Leases | Leases Prior
to the adoption of ASC 842 on April 1, 2019: Leases
where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rental
expense is recognized from the date of initial possession of the leased property on a straight-line basis over the term of the lease.
Rental expenses incurred by the Company was RMB5,664 for the year ended March 31, 2019. The
Company has no capital leases for any of the periods presented. Upon
and hereafter the adoption of ASC 842 on April 1, 2019: The
Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets and liabilities in the consolidated balance sheets. ROU
assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date
based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate,
the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value
of lease payments. It uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments
made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably
certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the
lease term. The Company have elected not to recognize ROU assets and lease liabilities for short-term leases for all classes of underlying
assets. Short-term leases are leases with terms of 12 months or less and does not include a purchase option that is reasonably certain
to exercise. |
| Commitments and Contingencies | Commitments
and Contingencies In
the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business
that relate to a wide range of matters. The Company recognizes a liability for such contingency if it determines it is probable that
a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments
including historical and the specific facts and circumstances of each matter. |
| Revenue recognition | Revenue
recognition The
Company derives revenue principally from the sale of mobile phones and accessories. Revenue from contracts with customers is recognized
using the following five steps:
1. Identify
the contract(s) with a customer;
2. Identify
the performance obligations in the contract;
3. Determine
the transaction price;
4. Allocate
the transaction price to the performance obligations in the contract; and
5. Recognize
revenue when (or as) the entity satisfies a performance obligation. A
contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group
of promises) that is distinct. The transaction price is the amount of consideration the Company expects to be entitled from a customer
in exchange for providing the goods or services. The
unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance
obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer
can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and
the good or service is distinct in the context of the contract. Otherwise performance obligations are combined with other promised goods
or services until the Company identifies a bundle of goods or services that is distinct. Promises in contracts which do not result in
the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are
immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent
distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises
should be assessed for classification as distinct performance obligations. The
Company’s revenue is primary derived from (i) OEM and ODM services for well-known brands; (2) its own in-house brands,
positioned in the emerging middle class consumer groups and price-sensitive consumers in emerging markets. Refer to Note 17 to the
consolidated financial statements for disaggregation of the Company’s revenue by type of product and geography information for
the years ended March 31, 2019, 2020 and 2021. Since
March 2020 the Company has participated in efforts to stem the spread of the COVID-19 epidemic, namely, by serving as a temporary
distributor of face masks to an existing overseas client in Brazil. The Company recognizes revenue from sales of face masks upon transfer
of control of its products to the customer, which typically occurs upon delivery. The Company’s main performance obligation to
its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the
products purchased under the arrangement. Delivery of these products occurs at that point of time when the control of the products is
transferred to the customer. All the face masks sold with delivery terms entered into on a Free On Board basis at Shenzhen port. The
following table disaggregates the Company’s revenue by type of contract for the years ended March 31, 2019, 2020 and 2021:
Year ended March 31,
2019 2020 2021
RMB RMB RMB
OEM/ODM 204,034 175,215 195,995
In-house brand 34,062 17,873 6,157
Face mask - - 44,747
Total 238,096 193,088 246,899
1) Cooperation
with OEM/ODM customers Revenue
is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and excludes amounts
collected on behalf of third parties. The Company generates its revenue through product sales, and shipping terms generally indicate
when it has fulfilled its performance obligations and passed control of products to its customer, when the goods have been shipped to
the customer’s specific location (delivery). Following delivery, the customer has full discretion over the manner of distribution
and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation
to the goods but has no right to return the products (other than for defective products). A receivable is recognized by the Company when
the goods are delivered to the customer as this represents the point in time at which the right to consideration becomes unconditional,
as only the passage of time is required before payment is due. Revenue from OEM/ODM customers does not meet the criteria to be recognized
over time since 1) it does not have the right of payment for the performance completed to date, 2) its work neither creates or enhances
an assets controlled by customers until goods are delivered to the customer, 3) customers do not receive and consume benefits simultaneously
provided by its performance.
2) Sales
of products for in-house brands For
revenue realized in Indian market, additional term of goods return may apply. Under Do Mobile’s standard contract terms, end users
have a right of return for defective devices within 7 days. At the point of sale, a refund liability and a corresponding adjustment
to revenue is recognized for those products expected to be returned. At the same time, Do Mobile has a right to recover the product when
customers exercise their right of return so consequently recognizes a right to returned goods asset and a corresponding adjustment to
cost of sales. Do Mobile uses its accumulated historical experience to estimate the number of returns on a portfolio level using the
expected value method, taking into consideration the type of products. |
| Contract assets and liabilities | Contract
assets and liabilities Contract
assets, such as costs to obtain or fulfill contracts, are an insignificant component of the Company’s revenue recognition process.
The majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventories and property and equipment,
which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to
the nature of the Company’s products and their respective manufacturing processes. Contract
liabilities are mainly advance from customers. |
| Intangible asset | Intangible
asset Intangible
asset results from the acquisition of the licensed software. The Company accounts for such licensed software with definite lives and
amortized over its estimated useful life of 3 years. |
| Warranty | Warranty The
Company offers a standard product warranty that the product will operate under normal use. For products sold to OEM/ODM customers, the
warranty period generally ranges from one to two years from the time of final acceptance. In general, the Company ships free spare parts
as product warranty to these customers while the products are sold. For products sold to end users through retailers in India, the warranty
period includes a 1 year warranty to end users. The Company has the obligation, at its option, to either repair or replace the defective
product. The customers cannot separately purchase the warranty and the warranty doesn’t provide the customer with additional service
other than assurance that the product will function as expected. At the time revenue is recognized, an estimate of future warranty costs
is recorded as a component of cost of revenues. The reserves established are regularly monitored based upon historical experience and
any actual claims charged against the reserve. |
| Value added Tax | Value
added Tax In
the PRC, value added tax (the “VAT”) of 17% (before May 1, 2018), 16% (from May 1, 2018 to April 1, 2019) and 13% (after
April 1, 2019) on invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The Company reports revenue
net of VAT. VIE and its subsidiary in China that are VAT general tax payers are allowed to offset qualified VAT paid against their output
VAT liabilities. |
| Cost of Sales | Cost
of Sales Cost
of sales consists primarily of material costs, direct labor costs, other direct costs, consignment manufacturing cost and manufacturing
overhead, which are directly attributable to the production of products. Write-down of inventories to lower of cost or net realizable
value is also recorded in cost of sales. |
| Selling and marketing expenses | Selling
and marketing expenses Selling
and marketing expenses consist primarily of (i) advertising and market promotion expenses, (ii) shipping expenses and (iii) salaries
and welfare for sales and marketing personnel. The advertising and market promotion expenses amounted to RMB586, RMB119 and RMB103 for
the years ended March 31, 2019, 2020 and 2021, respectively. The shipping and handling fees amounted to RMB2,472, RMB1,621 and RMB1,164
for the years ended March 31, 2019, 2020 and 2021, respectively. |
| Research and Development Costs | Research
and Development Costs All
research and development costs, including patent application costs, are expensed as incurred. Research and development costs totaled
RMB10,508, RMB10,754 and RMB7,193 for the years ended March 31, 2019, 2020 and 2021, respectively, and are included within general and
administrative expenses in the consolidated statements of comprehensive loss. |
| Employee social security and welfare benefits | Employee
social security and welfare benefits The
employees of the Company are entitled to social benefits in accordance with the relevant regulations of the countries in which these
companies are incorporated. The social benefits of the employees of the Company in the PRC include medical care, welfare subsidies, unemployment
insurance, employment housing fund and pension benefits. The Company’s subsidiary in India are also required to pay for employee
social benefits based upon certain percentages of employees’ salaries in accordance with the relevant local regulation. The Company
has no legal obligation for the benefits beyond the contributions made. The total amounts of such employee benefit expenses, which were
expensed as incurred, were approximately RMB2,308, RMB1,883 and RMB426 for the years ended March 31, 2019, 2020 and 2021, respectively. |
| Borrowing cost | Borrowing
cost Borrowing
costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of
time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments
of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs
are recognized in interest expenses in the consolidated statement of comprehensive loss in the period in which they are incurred. |
| Income taxes | Income
taxes Income
taxes are accounted for using the asset and liability method as prescribed by ASC 740 “Income Taxes”. Under this method,
deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date. A valuation allowance would be provided for those deferred tax assets for which
if it is more likely than not that the related benefit will not be realized. |
| Uncertain tax positions | Uncertain
tax positions The guidance on accounting for uncertainties in income taxes prescribes
a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in
a tax return. Guidance was also provided on the recognition of income tax assets and liabilities, classification of current and deferred
income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in
interim periods, and income tax disclosures. Significant judgment is required in evaluating the Company’s uncertain tax positions
and determining its provision for income taxes. The Company recognizes interests and penalties, if any, under accrued expenses and other
current liabilities on its balance sheet and under other expenses in its statement of comprehensive income. The Company did not recognize
any interest and penalties associated with uncertain tax positions for the years ended March 31, 2019, 2020 and 2021. As of March 31,
2020 and 2021, the Company did not have any significant unrecognized uncertain tax positions. |
| Statutory reserves | Statutory
reserves Pursuant
to the laws applicable to the PRC, domestic PRC entities must make appropriations from after-tax profit to non-distributable reserves
funds. Subject to the limits of 50% of the entity’s registered capital, the statutory surplus reserve fund requires annual appropriations
of 10% of after-tax profit (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each
year-end). These reserve funds can only be used for specific purposes and are not distributable as cash dividends. Appropriation has
been made to these statutory reserve funds of RMB301, RMB nil and RMB 217 for the years ended March 31, 2019, 2020 and 2021, respectively.
As of March 31, 2020 and 2021, the amount set aside were RMB6,368 and RMB6,585, respectively. |
| Non-controlling interest | Non-controlling
interest A
non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly
or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity on the consolidated
balance sheets and net loss and other comprehensive loss are attributed to controlling and non-controlling interests. |
| Foreign currency translation and transactions | Foreign
currency translation and transactions The
reporting currency of the Company is the RMB. The Company’s subsidiaries, consolidated VIE and VIE’s subsidiaries with operations
in the PRC, Hong Kong, and other jurisdictions generally use their respective local currencies as their functional currencies, except
that UTime Trading uses United States dollar (“US$”) as functional currency. The financial statements of the Company’s
subsidiaries, other than the consolidated VIE and VIE’s subsidiary with the functional currency in RMB, are translated into RMB
using the exchange rate as of the balance sheet date for assets and liabilities, historical exchange rate for equity amounts and the
average rate during the reporting period for income and expense items. Translation gains and losses are recorded in accumulated other
comprehensive income or loss as a component of shareholders’ equity. In
the financial statements of the Company’s subsidiaries and consolidated VIE and VIE’s subsidiary, transactions in currencies
other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date
of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional
currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising
from foreign currency transactions are recorded in other (income) expenses, net in the consolidated statements of comprehensive loss. |
| Convenience translation | Convenience
translation Translations
of balances in the consolidated balance sheets, consolidated statements of comprehensive loss and consolidated statements of cash flows
from RMB into US$ as of and for the year ended March 31, 2021 are solely for the convenience of the reader and has been made at the exchange
rate quoted by the central parity of RMB against the US$ by the People’s Bank of China on March 31, 2021 of US$1.00 = RMB6.5713.
No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on
March 31, 2021, or at any other rate. |
| Comprehensive income (loss) | Comprehensive
income (loss) Comprehensive
income (loss) is comprised of the Company’s net income and other comprehensive income. The component of other comprehensive income
or loss is consisted solely of foreign currency translation adjustments. |
| Related parties | Related
parties Parties
are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject
to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
| Segment reporting | Segment
reporting FASB
ASC Topic 280, “Segment Reporting” establishes standards for reporting information about reportable segments. Operating segments
are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the
chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. Management
views the business as consisting of revenue streams; however they do not produce reports for, assess the performance of, or allocate
resources to these revenue streams based upon any asset-based metrics, or based upon income or expenses, operating income or net income.
Therefore, the Company believes that it operates in one business segment. Substantively all of the Company’s long-lived assets
are located in the PRC. |
| Loss per share | Loss
per share Basic
net loss per share is the amount of net loss available to each share of ordinary shares outstanding during the reporting period. Diluted
net loss per share is the amount of net loss available to each share of ordinary shares outstanding during the reporting period adjusted
to include the effect of potentially dilutive ordinary shares, if any. Basic and diluted loss per share for each of the periods presented
are calculated as follows:
Year ended March 31,
2019 2020 2021
RMB RMB RMB
Numerator:
Net loss attributable to UTime Limited, basic and diluted (10,895 ) (21,701 ) (16,627 )
Denominator:
Weighted average shares outstanding, basic and diluted 4,380,000 4,507,223 4,517,793
Net loss attributable to UTime Limited per ordinary share:
Basic (2.49 ) (4.81 ) (3.68 )
Diluted (2.49 ) (4.81 ) (3.68 ) |
| Recently Adopted Accounting Pronouncements | Recently
Adopted Accounting Pronouncements In
August 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)
2018-13, Fair Value Measurement (Topic 820), which eliminates, adds and modifies certain disclosure requirements for fair value measurements.
The modified standard eliminates the requirement to disclose changes in unrealized gains and losses included in earnings for recurring
Level 3 fair value measurements and requires changes in unrealized gains and losses be included in other comprehensive income for recurring
Level 3 fair value measurements of instruments. The standard also requires the disclosure of the range and weighted average used to develop
significant unobservable inputs and how weighted average is calculate for recurring and nonrecurring Level 3 fair value measurements.
The amendment is effective for fiscal years beginning after December 15, 2019 and interim periods within that fiscal year, with early
adoption permitted. The adoption of ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements. |
| Recently issued accounting standards | Recently
issued accounting standards In
June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments. ASU 2016-13 replaced the incurred loss impairment methodology under current GAAP with a methodology that reflects expected
credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.
ASU 2016-13 requires use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments.
ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. In October 2019, the
FASB issued ASU No. 2019-10, “Financial Instruments-Credit Losses (Topic 326): Effective Dates”, to finalize the effective
date delays for private companies, not-for-profits, and smaller reporting companies applying the CECL standards. The ASU is effective
for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The
Company has not early adopted this update and it will become effective on April 1, 2023 assuming the Company will remain an emerging
growth company. The Company is currently assessing the impact of adopting this standard on its consolidated financial statements. In
December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 will
simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve
consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business
entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December
15, 2020. The Company is evaluating the impact of the adoption of ASU 2019-12, but does not expect it to have a material impact on income
taxes as reported in its consolidated financial statements. |
