(k) Revenue recognition On July 1, 2018, the Group adopted ASC 606 "Revenue from Contracts with Customers", applying the modified retrospective method. The adoption didn't result in a material adjustment to the Group's accumulated deficit as of July 1, 2018. Accordingly, revenue for the year ended June 30, 2019 and after was presented under ASC 606, while comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The revenues are accounted for as contracts with customers. Under the guidance for contracts with customers, we are required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) we satisfy its performance obligations. In determining the transaction price, we have included variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur. Revenues are recorded net of sales related taxes and surcharges. The adoption of ASC 606 did not significantly change (i) the timing and pattern of revenue recognition for all of the Group ' s revenue streams, and (ii) the presentation of revenue. Therefore, the adoption of ASC 606 did not have a significant impact on the Group ' s financial position, results of operations, equity or cash flows as of the adoption date and for the years ended June 30, 2019 and 2020. The Group generates revenues mainly from wealth management and asset management. Wealth management Revenue from wealth management mainly includes distribution commissions and performance-based fees, in a typical arrangement in which the Group serves as distributor. Distribution commissions Distribution commissions include one-time commissions and recurring management fees. Distribution commissions are primarily generated from distributions of financial products, including publicly raised fund products, privately raised fund products and other financial products. The Group enters into distribution agreements with financial product issuers which specify the key terms and conditions of the arrangement. Such agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. The Group defines the "distribution of a financial product" for its revenue recognition purpose at the time when both of the following two criteria are met: (1) the product purchaser (the "investor") has entered into a purchase or subscription contract with the relevant product issuer or fund manager and the investor has transferred the subscription fund to an escrow account designated by the product issuer or fund manager and (2) the product issuer or fund manager has issued a formal notice to confirm the distribution of a financial product. One-time commissions are calculated by multiplying a pre-agreed annualized charge rate with the amount of products distributed, and are recorded at a point in time when the financial product is established. The Company charges an additional one-time commission fee for publicly raised funds distributed, by multiplying a pre-agreed charge rate with the amount of redemption, when the investor chooses to redeem the financial products. One-time commissions are typically paid on or shortly after the transaction is completed. The Group also charges recurring management fees from the financial products issuers. Recurring management fees are recorded over time, and determined based on the types of financial products the Group distributes and calculated as either (i) pre-agreed annualized percentage with the daily outstanding balance confirmed with the issuer, prorated daily, (ii) pre-agreed annualized charge rate with the amount of products distributed, prorated by the actual period length of the product, or (iii) as a percentage of the fair value of the total investment in the financial products, calculated daily. Recurring management fees are typically paid on a regular basis (typically quarterly or annually) and are not subject to clawback once determined. Performance-based distribution fees Performance-based distribution fees are contributed by the distribution of privately raised fund products. The Group earns performance-based distribution fees from the issuers of the privately raised fund products, which are dependent on the extent by which the fund's investment performance exceeds a certain threshold at the end of the contract term. Such performance-based fee is typically recognized at a point of time, usually at the end of the contract term when the cumulative return of the fund can be determined, and is not subject to clawback provisions. Asset management Revenue from asset management service mainly includes management fees and performance-based fees, in a typical arrangement in which the Group serves as fund manager. Management fees Revenue from asset management, includes management fee from the privately-raised funds managed by the Group. Management fees are recognized in the period during which the related services are performed in accordance with the contractual terms of the fund agreements from the established date to the terminated date of the funds. Management fees earned from certain investment funds are based upon a range of up to 2% of capital committed. By unanimous consent among the fund manager, investors and the trustee, the fund could be terminated earlier than the contract period, and the remaining portion of unamortized management fee shall be returned to the investors. Performance-based fees The Group is entitled to a performance-based fee based on the extent by which the fund's investment performance exceeds a certain threshold. Such performance-based fee is typically calculated and recognized when the cumulative return of the fund can be determined, and is not subject to clawback provisions. Corporate financing The Group provides comprehensive financing solutions to corporate borrowers, including reference of sources and channels of funding. The contract between the borrower and the Group clearly states the financing amount, the agreed financing days, and the annualized charge rate. Although the performance obligation is fulfilled when borrower receives the funding, there is a variable consideration that the amount of advisory fee will be reduced if the borrower returns the loan in advance which is clearly stated in the clause of the contract. Therefore the revenue is calculated by multiplying the annualized charge rate with the financing amount and recognized at a straight-line over the actual service period. Except for minimal revenue of RMB 6, the Group has completely ceased corporate financing services as the Group further consolidated its resource to mainly focus on the development of wealth management services. Information technology and others During the year ended June 30, 2018, information technology and others mainly represented revenue from the technological support and system development services provided to third parties. The services contract pricing is based on the expected labor cost, project management services fee plus a certain percentage of gross profit. Revenue is recognized according to completion percentage and total contract amount upon the acceptance of the services confirmed by the customers. In July 2018, the Group transitioned IT service into part of internal information technology service function, and therefore there is no information technology revenue during the year ended June 30, 2019. During the year ended June 30, 2019, other income of RMB1.0 million comprised interest income from factoring business, which was recognized over the factoring period. During the year ended June 30, 2020, there was no revenue of information technology and others. Disaggregation of revenue As of June 30, 2018 2019 2020 RMB RMB RMB Wealth management 140,403 193,082 106,444 Distribution commissions 126,843 146,207 99,600 -- One time commissions 125,866 120,509 69,196 -- Over period commissions 977 25,698 30,404 Performance-based distribution fees 13,560 46,875 6,844 Corporate financing 13,710 6,271 6 Asset management 103 2,767 23,033 Management fees 103 2,767 6,393 Performance-based fees - - 16,640 Information technology and others 11,595 1,111 - Total 165,811 203,231 129,483 Contract liability Contract liability relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance for management fees under Asset Management Services. The contract liability was RMB180 and RMB421 as of June 30, 2019 and 2020, respectively, and is recorded as "Advance receipts" in the consolidation statement of financial position. The amount of revenue recognized during the year ended June 30, 2020 that was previously included in the contract liabilities balance as of June 30, 2019 was RMB180.