LEASES |
18.LEASES The Group’s leases mainly related to buildings and the rights to use the land. The total expense related to short-term leases was insignificant for period of 2021, 2022 and 2023, and sublease income of the Group which was recognized in revenues in the consolidated statements of comprehensive income was RMB134, RMB119 and RMB143 for the years ended December 31, 2021, 2022 and 2023, respectively. The Group recognized a negative lease expense of RMB88, RMB281 and RMB98 for 2021, 2022 and 2023 under the relief of lease concession from COVID-19 as the Group elects using the variable lease expense approach. A summary of supplemental information related to operating leases in 2022 and 2023 is as follows: | | | | | | | | Years Ended December 31, | | | | 2022 | | 2023 | | Lease cost: | | | | | | Operating fixed lease cost | | 4,186 | | 4,217 | | Finance lease cost | | | | | | — Amortization of ROU assets | | 93 | | 87 | | — Interest on lease liabilities | | 116 | | 114 | | Operating variable lease cost | | (144) | | 110 | | Total lease cost | | 4,251 | | 4,528 | | | | | | | | Other information: | | | | | | Weighted average remaining lease term | | | | | | Operating leases | | 13 years | | 13 years | | Finance leases | | 28 years | | 27 years | | Weighted average discount rate | | | | | | Operating leases | | 6.28 | % | 6.27 | % | Finance leases | | 3.98 | % | 4.29 | % |
As of December 31, 2023, the maturities of lease liabilities, excluding operating lease liabilities classified in liabilities held for sale (Note 9), in accordance with ASC 842 in each of the next five years and thereafter are as follows: | | | | | Year Ending December 31, | | Total Operating Leases | | Total Finance Leases | 2024 | | 4,073 | | 155 | 2025 | | 3,981 | | 159 | 2026 | | 3,788 | | 161 | 2027 | | 3,615 | | 165 | 2028 | | 3,384 | | 168 | Thereafter | | 22,282 | | 4,056 | | | | | | Total minimum lease payments | | 41,123 | | 4,864 | | | | | | Less: amount representing interest | | 13,299 | | 2,122 | | | | | | Present value of minimum lease payments | | 27,824 | | 2,742 |
As of December 31, 2023, the Group has entered 25 lease contracts that the Group expects to account for as operating or finance leases, the future undiscounted lease payments for these non-cancellable lease contracts are RMB5,504, which is not reflected in the consolidated balance sheets. As of December 31, 2022, the maturities of lease liabilities in accordance with ASC 842 in each of the next five years and thereafter were as follows: | | | | | Year Ending December 31, | | Total Operating Leases | | Total Finance Leases | 2023 | | 4,209 | | 142 | 2024 | | 4,196 | | 146 | 2025 | | 3,989 | | 146 | 2026 | | 3,793 | | 148 | 2027 | | 3,605 | | 151 | Thereafter | | 24,547 | | 3,539 | | | | | | Total minimum lease payments | | 44,339 | | 4,272 | | | | | | Less: amount representing interest | | 12,929 | | 1,718 | | | | | | Present value of minimum lease payments | | 31,410 | | 2,554 |
Supplemental cash flow information related to leases for the years ended December 31, 2022 and 2023 are as follows: | | | | | | | Years Ended December, 31 | | | 2022 | | 2023 | Cash paid for amounts included in the measurement of operating lease liabilities | | 3,295 | | 4,440 | Cash paid for amounts included in the measurement of finance lease liabilities | | 106 | | 68 | Non-cash right-of-use assets obtained in exchange for operating lease liabilities | | 1,010 | | 343 | Non-cash right-of-use assets obtained in exchange for finance lease liabilities, net of reassessment of finance lease payments | | (161) | | 361 | Non-cash right-of-use assets obtained in acquisition for operating lease | | 171 | | — | Non-cash lease liabilities obtained in acquisition for operating lease | | 144 | | — |
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